Investor Presentation : Executive Summary

eFarm : A Farmer To Consumer Agri Supply Chain Network

Note:

(Please refer Overview presentation & Financials spreadsheets for details)

Star Hotels / Restaurants : Oriental Cuisines pvt. Ltd (Hot breads chain)VGP Golden Beach resortsSavera HotelLeading hotel & catering chain (in pipeline)High end restaurant in Besant nagar (pipeline)Retailers : Veggibazaar.comLargest F&V retail chain in TN (in pipeline)J’s Organo store, neelangaraiFive Star Classic, ThiruvanmiyurUniversal, Tambaram (in pipeline)Fast food :PizzaguyOVG Sandy’s , Karma Café Institutions:Voluntary Health Services Hospital, taramaniKalyani hospital, MylaporeVenkateshwara hospital (pipeline)ISKCON ChennaiSmall – mid range hotels & caterersBharani hotel, ThiruvanmiyurPicnic plaza, M fiylaporeRayar mess , MylaporeAnnai MessSS Annamalai staff canteenJayam caterers , VelacheryMeenakshi caterers , MylaporeLeading industrial caterers (in pipeline)LocalTraders and street vendorsHamilton bridge area vegetable & fruit vendors associationThiruvanmiyur market traders associationFood ProcessingCuttiesByKuttysExporters (pipeline)Star Agro (Nellore) - BananaAnnai exports (madurai) – Ground nut, Turmeric

Over 1500 farmers and associations across Tamilnadu , Andhra , Karnataka & Kerala currently in the network :

Conventional farmers/precision farmersGreen earth, NilgirisPrecision Farmers association, TNSatguna Agro , ThanjavurRaj varadarajan farms , padalamBanana farmers association, TNDept. of Horticulture & Agrimarketing, TN governmentGPS Agro , Cochin

Organic farmersEarth trust , OotyEcovilleRajagopal Farms, NanmangalamSIMPLE – Organic farmers association , NelloreOrganic Farmers Group of India (AOFG)

InstitutionsMOP Vaishnava Women’s college – Dept. of Food Science & technologyTamilnadu Agri University – Agri Business Incubation ICRISAT, HyderabadPSG College of Tech – Business school, ChennaiICFAI Business school, SchoolHospiexchange

Microfinance and rural bankingIndian Bank – Microsate IIIFMREquitas

NGOsRASA – School for Special ChildrenNandini – Voice for DeprivedBanyan NiveditaNDS – Networking & Dev. Centre for NGOsExnora (in pipeline)Samanvaya

Consultants :Dr. Vivek Pathiavadi ,Rural Supply Chain Management Dr. Padmanabhan , Retired Toxicologist , Germany Dr. Easwar, Management Faculty, IIT Delhi , RtdWing Cmdr Air force OneDr. Shridhar, Entymology, TNAU

Rural entrepreneursTravel another India , Gouthami

BuyersFarmers / Suppliers Collaborators

Status as of Nov 1 , 2009

Eg: Ooty Carrots (As of 29th

June 2009)

5/kg

20/kg

28/kg32/kg

Farmer’s

market

(In Ooty/

Kothagiri)

Metro Terminal

Market

(Chennai)

Kirana

stores,

Push

carts

Branded

Retailers

500 % Price hike

Over 500% Price hike on average to customer , but no value addition

Changes hands several times: 40-50% is wasted – which adds to the costs

Prices set at each intermediate point arbitrarily by brokers/agents without

any planned demand/supply data

Farmer typically operates at 25% loss , End retailer less than 5% net margin

Regional

mandi

(Mettupala

yam)

12/kg

Neighbourhood

market

(Thiruvanmiyur

Chennai)

24/kg22/kg

End customer

price

Premium

Grade

(Export)

42/kg

Source : Ooty market traders, Chennai traders, indg.in

Assumptions : Transport Rs 6000 for 4T truck , Operational expense @30%

Wastage reduced from 40% to 5% owing to prior demand data , and less intermediaries

Customers see a 30% drop when compared to prevailing market

End retailers get better margins , promoting more sales & entrepreneurship in F&V

eFarm’s net margin : 30%

Eg: Ooty Carrots (As of 29th

June 2009)

Farmer

Reduced from 500% to 200%

6.5/kg

19.75/kg

13.5/kgEnd

customer price

eFarm wholesale

(at Mylapore

Distribution centre)

eFarm retail

(at eFarm powered outlets

and customer deliveries)

30/kg

End

customer

s see 30%

drop in

prices

Wholesale

buyers see

a 33%

drop

Export prices

become

viable and

competitive

Farmers are

paid 20%

higher than

current

prices to

ensure

profitability

Income from sale of produce (~50% of turnover)

Income from value added processed items , waste conversion

User Registration fees and database listing in portal

Franchisee fees for retailers (Based on typical daily order volume)

Systems integration /consulting

Advertisements in retail vans/push carts/web portal

10%

44%

3%7%

19%

1% 16%

Income Distribution

Website registrations

Income from produce sale

Advertisements

Franchisee fees

Consulting

Year1

• Establish framework for core operations

• Establish hub/spoke operations within Tamilnadu with Chennai as destination

• Launch B2B portal

• 3 in 1 : 3 croresturnover by year 1

Year2

• Biggest Local player (Chennai) in agrisourcing & supply

• Kickoff agribusiness consulting division

• Establish Agriprocessing and waste conversion pilots

• 15 by 2 : 15 croresturnover by year 2

Year3

• Expand operations regionwide (S.India)

• Establish export oriented units

• Launch online agriproduce auctions and Third party logistics services

• Profit in 3 : Become fully profitable by Year 3

Year4

• Biggest Regional Player (S.india)

• #1 expert in agriconsulting, market research

• #1 supplier to domestic agriprocessors , agriwaste/byproduct industries

• Kickoff national level pilots of model

Year5

• Biggest National level player in agrisourcing

• #1 supplier to export oriented units

• 30 Plus : 30Cr profit by Year 5 , ROI of 30%

Year 1 : Rs 3.1 crores (~ 690K USD) Year 2 : Rs 1.3 crores ( ~ 290 K USD) Year 3 : None ( Will be generating profit) Utilisation of funds :

Short term Working capital requirement :25-30 lakhs Rupees

Please see attached Excel spreadsheet for balance sheet, sales projections , funding summary , financial ratios etc.,

Year 1Year 2

Year 3

-500

0

500

1000

1500

2000

2500

3000

3500

Sales

Net profit before tax

Figures in Rupees Lakhs

Sales , Profit Projections

** At end of 3 years

eFarm

Year End Summary

Year One Year Two Year Three Year Four Year Five Year Six

Total Income 34,670,240 144,619,610 341,211,415 474,684,655 654,096,624 898,045,331

Total Cost of Sales 26,520,365 94,373,762 191,751,691 259,230,666 284,621,978 312,525,834

Gross Margin 8,149,875 50,245,848 149,459,724 215,453,988 369,474,646 585,519,498

Total Salary and Wages 9,213,000 18,426,000 36,852,000 63,417,200 69,758,920 76,734,812

Total Fixed Business Expenses 29,654,050 44,481,075 55,601,344 78,235,758 86,059,334 94,665,267

Total Other Expenses 1,259,594 1,254,136 - - - -

Net Income(Before Tax) (31,976,769) (13,915,363) 57,006,380 73,801,031 213,656,392 414,119,419

Extended Projections till 6 years

Please see spreadsheet for details

Please see spreadsheet for details

The truck , being the main mode of deliveries , represents the fundamental unit of volume , utilization & growth indicator

Based on trials and metropolitan traffic regulations , a 4 tonne truck has been identified as a standard, viable, long haul unit which can freely come within city at all times.

Within city, local distribution can be handled by range of small vehicles – from tempos to 2 tonne vehicles which can navigate small spaces

All figures are tied to “How many truckloads of produce” is being transacted

ID Start Finish Duration

2009

Q3

2 16w12/4/20098/17/2009Setup/Integrate collection centres

3 16w12/4/20098/17/2009Setup/Integrate distribution

centres

9 24w1/29/20108/17/2009Build B2B customer facing agri

trading portal

11 8w1/29/201012/7/2009Build SMS/Mobile/Voice interfaces

12 6w1/15/201012/7/2009Setup call centre/BPO operations

16w3/26/201012/7/2009Setup Training centres/Rural

outreach points

25 24w9/13/20103/30/2010Setup food processing/value

additionb trial plant

24w9/13/20103/30/2010Setup waste conversion trial plant

Task Name

33

34

26

16w1/30/201210/11/2011Regional phased expansion-pilots

16w12/4/20098/17/2009Build Supply chain mngt backbone

7 72w12/31/20108/17/2009Build IT infrastructure

1 32w3/26/20108/17/2009Build supply chain (physical)

network

6

4 16w3/26/201012/7/2009Setup/Integrate storage areas

8

5 24w1/29/20108/17/2009Setup/Integrate Transport logistics

16w5/21/20121/31/2012National phased expansion-pilots

31 .2w8/17/20098/17/2009Initiate Long term expansion

32 16w10/10/20116/21/2011Second round fund raising

12w11/6/20098/17/2009Fund raising – First

round(ongoing)

24 .2w3/29/20103/29/2010Increase Supply chain Value

addition

28 12w12/6/20109/14/2010Data analysis/research insights

29 12w2/28/201112/7/2010Customer driven production

planning

30 44w1/2/20123/1/2011Agri entrepreneur training/

consulting

2010 2011

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

126w1/13/20128/17/2009Operations(Ongoing)

16w2/26/201011/9/2009Expand pilot to add new farmers &

bulk customers

16w2/26/201011/9/2009Setup alliances and tie-ups

126w1/13/20128/17/2009Planning/Monitoring /Process

improvement of daily ops

14

15

16

17

18

13 48w12/31/20102/1/2010Enhancements/Thirdparty

interfaces

10 0w2/1/20102/1/2010Portal kickoff

Q4

21

20

19 64w5/20/20113/1/2010Marketing and sales

32w10/8/20103/1/2010Expand sourcing network of

farmers through alliances

32w10/8/20103/1/2010Expand customer segments

through franchising/ distributors

23

22 32w10/8/20103/1/2010Expand logistics network through

tie ups

32w5/20/201110/11/2010Participation in trade shows, agri

events

27 68w1/2/20129/14/2010Agri Business Consulting

Structure : Registered as ‘MVS EFARM PVT LTD’ Shareholders : Venkata Subramanian and Srivalli Krishnan are

the founders and MDs of the firm . Sole owners of all shares of the company.

Investors : Existing external investors are primarily friends and family on ‘soft loan’ terms with no equity stake

Debts : There are no external debt or equity investments (as of Nov 1’09)

Staff strength : There are 8 fulltime employees and 4 part time employees (as of Nov 1 ‘ 09)

Turnover : Current turnover PER MONTH (as of Nov’09)- 4 lakhs

Current growth margin M-O-M (as of Nov ‘09) – 30% Current margins : Gross :35%0 , Net : 20%