Post on 15-Jan-2015
description
Management • Venkata Subramanian Founder & Managing Director:
MS (Computer Science), University at Albany, NY , B.Arch , IIT Kharagpur (1995) , India
12 years of experience in IT industry , lead key accounts in BFSI for Wipro, Satyam in USA. Very strong expertise in analysis & design of complex systems , portal development , back office operations.
Responsible for overall strategy , technology and public relations
• CEO : Srivalli
MBA , B.Com Taxation
8 years experience in Sales, Marketing, & Operations. Has run two start-ups and organised fund raising for NGOs as part of CSR programs.
Responsible for operations, business development, finance, administration
• Manager, Sourcing & Logistics : Sankara Krishnan
Over 35 years of Hands on experience in logistics & rural entrepreneurship
Extensive practical experience in trucking operations, farming, rural businesses
Responsible for sourcing, transportation, delivery• Manager , Customer Relations : Yamuna
M.Phil , M.A , B.Ed, B.Sc
Retired head from Doordarshan Kendra, Chennai
Over 35 years experience in media , public relations, heading public sector organization• Consultants and advisors from leading agricultural universities, management schools, government and industry
Combination of different background ,skills and experience to provide creative perspectives to solving key problems
Our Vision •Bring people together through creative use of technology platforms ('connecting the dots' ) to form socio-economic-webs•Create successful entrepreneurial, social enterprises which are profitable and sustainable•Make corporate social responsibility our core business model and differentiator •Measure success not just in financial growth , but also in the social growth in the areas we serve
Matchbox Solutions
eFarm
An eBay for Farmers !?
Sahee jawaab : None of the above !
Pure corporates – Failing on greed and personal egos
Pure govt. initiatives – Failing on corruption & bureaCRAZY
Pure NGO/NPO – Driven by passion, but lack sustainability and
governance
Working for a social cause DOES NOT MEAN we need to be
making LOSS The middle path : Social + Business goals
The middle path : Social + Business goals
The actual demand and supply data for any produce (which is MOST
fundamental to any sustainable business) is not reliable /accurate , leading
to over production and wrong crop selection.
Price discovery through auctions or local mandis are an eye-wash
Bagging/packing of produce is not standardized,
Too many middlemen, too little value addition – Resulting in High wastage
(over 40%), black marketing and price escalations of over 300%
Transportation handled by independent truckers who also operate through
brokers
Several existing storages and cold rooms under utilized
There is little or no IT usage/Post harvest science
End buyers – High prices, Poor quality
Lorry drivers – The missing link
Small retailers – Bullied out, Ignored , Slumdogs ?
<A video>
There is no ‘single’ entity owning responsibility of entire chain
The systems are usually closed, vendor specific or too complex that
predominantly it’s reach and volume is limited
They cater only to the top 5% of the income/social bracket , and that too in metros.
Hence the effects aren’t felt at the ‘bottom of the pyramid’.
In some cases, it has resulted in a David v/s Goliath fight where the large retailers
are trying to completely by-pass existing traders and small time vendors, leading to
stiff resistance and negativity
Big investments made . But Recession has hit retail
Farmer’s market – Utopian vision but Unrealistic
Loan waivers – Insult to Injury
Frequent changes in administration & executives derail plans
Foreign funds & agencies – vested interests
A ‘click and mortar’ entity with primarily : A B2B technology platform which forms the
core of the system (like eBay, alibaba) and A distribution, fulfillment system which blends
well to the vagaries of Indian conditions (Dubbawallahs, Shakti, Amway)
A ‘glue’ between the various stakeholders in the system, the ‘network’ IS the company
Setup a level playing field. Don’t compete with any of the existing players
nor become a threat to anyone’s livelihood.
FarmersCooperativesCollection centers
Village ICT kiosksPhone boothsMobile operators
StorageWarehouses
Value added resellersSorting , Grading , Processing, Packing
Small Independent transportersIntra-city small tempos
KiranasSelf Help GroupsHawkers
eFarm
Bulk buyersExporters
Logistics Fleet operators
<A slideshow/video of operations>
NO
Organised retail penetration less than 2%
Local street side vendors/push carts have last mile connectivity to
customer
Demand Supply prediction – In a constrained situation
Current examples – Train, bus, movie tickets
Gradual change in mindset – From walkin,to phone-in, to paper, to
email to online forms
YES ! But with a BIG PLUS points
Examples of “System” as a middleman
Marriage market : broker v/s Bharathmatrimony
Travel booking : Agents v/s Yatra.com,IRCTC
Prices are arrived at based on fair negotiations and in advance
All grades (High/Medium/Low) produce is picked at different rates and
matched with suitable end customer preferences
By reducing wastage across the chain , farmer gets price from more
quantity sold
Pick-up is done from farm or from local collection centers , reducing
transportation costs to farmer
Payments are made in full upon delivery , through transparent means with
proper paper bills
Data about current demand, price levels, buyer preferences, projected
volumes available for aiding in planning phase
For bulk buyers :
Collapsing multiple middlemen improves efficiency and accountability
Assured availability, quality, less price fluctuations
Less wastage owing to pre-sorting
For retail buyers :
Farm fresh quality at reasonable prices (about 20% cheaper on avg)
A trust worthy, safe , honest place to shop
“Gabbar singh kehkar gaya
Jo dar gayaa , Who Mar Gayaa”
Reality :
Only brokers/agents make money
High risk game, Uncertainty across chain
Value addition brings more revenue for everyone
Value added resellers
Intermediaries – Sorting, Grading, Packing, Transporting
Storage – Dry / Cold
Processing – juices, extracts, powders
Distributors
Retailers – many formats
Quick calculation :
Chennai population : 8 million
Avg. consumption : 250 gms
Volume : 2000 tonnes (400 lorries inflow Koyambedu)
Value : 3 crores per day
1% penetration
= 3 lakhs T.O. per day = 9 crores per annum
Only core operations are directly staffed
Rest through entrepreneurs, self help groups
<web pages in slides>
Pilot completed
Retail operations using mobile trucks
8 tonnes per month
10 member core team , 10+ advisors , 100+ extended team
Phase I : Pilot (Status – Completed)
Aug 15 to Oct 15
Thiruvanmiyur, Valmiki Nagar (Chennai)Volume : 2 tonnes per week , Turnover = Rs 30000/weekGoal : Road test of the concept in immediate vicinity, capture
detailed lessons learnt and feedback, achieve break even
Phase II : Stabilisation (Status – In progress)
Oct 15 2008 to Mar 15 2009
Across 5 sample neighbourhoodsVolume target : 4 tonnes per day , per locality Turnover target : Rs 75000 per day, per localityGoal : Regularise operations, Identify and fix gaps,
Demonstration-cum-training centre in base of all wholesale/retail activities, Data analysis and systems enhancements.
Phase III : Growth– Mar 15 2009 to Dec 15 2010
Goal : Metro wide growth (Chennai), Deeper sourcing channels, hub and spoke operation in Tier II cities
Phase IV : Expansion (2011 – 2013)
Goal : Expand to other metros/regions , Cross region sourcing & delivery
People issues :
Agri industry has been on a slow/negative growth .
Both farmers and end retailers want to quit
Initial adoption and understanding amongst the buyer community may
be slow
Finance issues :
Payments and Collections.
Environmental issues :
• Weather, calamities affect sourcing
Percentage on each transaction
made (~10%),
User Registration fees and database
listing
Franchisee fees for retailers (Based
on typical daily order volume) ,
Training
Systems integration /consulting
Advertisements in retail vans/push
carts/web portal
Year 1
Year 2
Expense Distribution
15%
20%
13%7%
39%
1%
5%
Sourcing
Distribution
Sales & Marketing
Technology
HR
R&D
Misc
Expense Distribution
15%
20%
13%7%
39%
1%
5%
Sourcing
Distribution
Sales & Marketing
Technology
HR
R&D
Misc
“Socially conscious” Investor
Domain expertise and network
Talk in Rupees and not Dollars ;-)
Be a ‘team member’ not JUST a ‘share holder’
TATA NEN Hottest startups :
Judges and public feedback
Repeat customers, Referrals
Investor interest
Press coverage – NDTV , Hindu, startups.in, Kumudham
High end produce – Organics (OO44)
Pricing study
Standardised collection/bagging
Processed food items
Building volume & scale on buyer side
Self help groups – issues
Venkyvenky@matchboxsolutions.i
n
Vallisrivalli@matchboxsolutions.in