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India is number one in terms of irrigated land
area BUTproductivity /hectre is too low.
There is need to modernize the agriculturalinputs and mechanization in order to compete
with other countries. Like israel,china, brazil.INDIA is the 1st producer of- banana,onion, wheat, rice
2nd- veg & fruits. Explain GDP.
MARKETING OF
AGRICULTURAL INPUTS
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10/1/20102
y Agriculture -GDP of India
y 2006 17.5
y 2005 18.3
y 2004 18.8
y 2005 20.9
y
y The agricultural yield increased in India after independencebut in the last few years it has decreased.This in its turn has declined the Growth Rate of theAgricultural Sector in India GDP.The total production of food grain was 212 million tonnesin 2001- 2002 and the next year it declined to 174.2 million tonnes. Agriculture Growth Rate inIndia GDP declined by 5.2% in 2002- 2003.The Growth Rate of the Agriculture Sector in IndiaGDP grew at the rate of1.7% each year between 2001- 2002 and 2003- 2004.This shows thatAgriculture Growth Rate in India GDP has grown very slowly in the last few years.
y
y Green revolution took place in India and this gave a major boost tothe agricultural sector for irrigation facilities, provision of agriculture subsidies andcredits, and improved technology.This in turn helped to increase the Agriculture Growth Rate inIndia GDP.
y
y The agricultural sector has had low production due to a number of factors such as illiteracy,insufficient finance, and inadequate marketing of agricultural products. average size of the farms, hasnot adopted modern technology and agricultural practices , insufficient irrigation facilities- depends onunpredictable rainfall.
y
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What are agricultural inputs?
CONSUMABLES DURABLES
Seeds Tractors(MnM, john dhere, eicher,
escort)
Oil and lubricants Harvesters (sugarcane H, WheatH)
Fertilizers Thrashers (4 wheat, rice- to take
cover outside of d wheat,rice)
Agrochemicals (pesticides,
insecticides, fungisides)
Tools : levers , cultivators etc
Use- ploughing, tillage operations
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10/1/20104
y Our presentation is majorly cover the TRACTORS,
FERTILISERS, AGROCHEMICALS
yREASONS- more openings & gr8 future ahead
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10 tractors / 1000 hectares (INDIA)
compared to 60 tractors /1000 hectares indeveloped agricultural ecionomies
Growth of 30% in 08-09 due to ensured
availability of economic finance by the
govt.
INDIAN TRACTOR INDUSTRY
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Penetration is significantly higher in states like Haryanaand Punjab i.e 90/1000 hectare. Land under irrigation in these 2 statesis really higher
BUT the average average tractor density is 10/1000 hec inINDIA.
Huge potential for increase in sales.
PENETRATION LEVELS
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CLASSIFICATION OF TRACTOR
INDUSTRY
SMALL Less than 30 hp
MEDIUM Between 31-40hp (51-55%)
LARGE More than 40hp
Used in fruit orchards
Used in harrowing, ploughing n
other tillage operations
4 carrying agricultural
PRODUCE farm farm 2
market
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POST LIBERLIZATION SCENARIO
1991-97 Growth by 14% per annum
1998-02 Fall by 10%
R E A S ON S F O R T H E FA L L A R E T H E F O L OW I N G :
Farmers income badly hit by monsoons.
Increase in cost of petroleum.
Govt. not making sufficientpurchases.NDA govt. not a farm frndly
govt
Less arable land.We need to grow more crops
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2003 Onwards Tractor industry grew by 23% since
then YOY.
REASONS:
Easy availability of finance.Good cash flow to the farmers.
Good inventory of tractors.
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MARKET SHARE ANALYSIS
COMPANY SHARE(approx.)
M&M 30%
JOHN DEERE 24%
EICHER 24%
ESCORTS 14%
PUNJAB TRACTORS 11%
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CHALLENGES OF
INDIAN TRACTOR INDUSTRY
Low levels of mechanization. Fragmented nature of land
holdings.
Lack of infrastructure. Cautious and Price sensitive
buying behavior of farmers
Lack of access to easy credit. Low literacy level
Low productivity Good food stock position with
government.
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FACTORS SUGGESTING BETTER FUTURE PROSPECTS
FOR TRACTOR INDUSTRY
Increase in corporate farming
Increase in literacy level
Low level of farm mechanization
Government thrust on increasing irrigation
Emphasis on agriculture financing
Emphasis on rural infrastructure development
Clearing of piled up inventory
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(a) For domestic tractor industry: -
INORGANIC STRATEGY
Eg:Joint venture of John Deere and L& T.
Yanmar (Japan) 12% stake in Sonalika.
TAFE acquired the tractor business of Eicher group.
MARKETING STRATEGIES
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(b)Exporting: -
Due to low cost of manufacturing India is being used as
export base.
Accounting approx. 25% of profit.
(c )Manufacturing in alignment with demand: -
Phenomenon of overstock has to be controlled
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(d)Other strategies: -
Addition of new features
Setting up satellite plants
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Transformed agriculture sector.
Green revolution gave positive boost (60s).
Third largest producer in world.
57 large plants in the country.
FERTILIZER INDUSTRY IN INDIA
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Constitutes the backbone of Indian agriculture industry.
Major and active role of government.
Marketing mix for fertilizers is determined by government
not by organization especially for Urea.
MARKETING FOR FERTILIZER
INDUSTRY
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R.C.F.
NATIONAL FERTILIZERS
COROMANDAL FERTILIZERS
DEEPAKFERTILIZERS CHAMBAL FERTILIZERS
MAJOR PLAYERS IN
FERTILIZER INDUSTRY
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CLASSIFICATION OF
FERTILIZER INDUSTRY
NITROGENOUS
PHOSPHATIC and POTASHIC
COMPLEX
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Variation across states.
Variation across districts.
Variation across product categories.
VARIATIONS IN CONSUMPTION
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21
POLICIES FOR MARKETING OF
FERTILIZERS
Retention
Pricing
scheme
Introduced in 1997 , to keep the prices low.
Cost plus subsidy paid to urea manufacturers to compensate.
Distribution
Policy
Earlier only determined by Government but now there are many
private selling points also. There are 2,72,000 fertilizers sales point presently.
Import policy Import of fertilizer i.e UREA which is used at very large scale is onrestricted list.
Prices are fixed in such a way that there is no difference in price of
fertilizers either imported or bought from domestic market
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22
CHALLENGES FOR
MARKETING FERTILIZERS
WTO
GUIDELINES
LACKOF
IRRIGATION
LACKOFAVAILABILITY
OF EASYCREDIT
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23
MARKETING STRATEGIES OF
FERTILIZER INDUSTRY
Area wise constraint analysis
Tie ups with cooperatives
Organize direct contact programs
Developing optimum product mix
Distribution channel management
Preparation for decontrolled scenario
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MARKETING STRATEGIES OF FERTILIZER INDUSTRY
Promoting balanced and efficient use of fertilizers
Demonstration
Below line promotion activities (exhibitions, fair, competitions etc)
Training programs for dealers
Use of information technology networks (kisan call centres)
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Constitutes those chemical compounds that prevent crops from attack of
pests , weeds , fungus , insects and other related diseases.
Classification is on the basis of the purpose for which it is used i.e
insecticides , fungicides, pesticides etc.
India is second largest producer of agrochemicals in world after Japan.
25
INDIAN AGROCHEMICAL
INDUSTRY
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BASF
DOW
TATA-RALLIS
BAYER
INDOFIL
EXCEL
SYENGENTA
26
MAJOR PLAYERS IN
AGROCHEMICAL INDUSTRY
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MARKETING ENVIRONMENT FOR
AGROCHEMICALS IN INDIA
CROPPING PATTERNS GOVERNMENT POLICIESAND
REGULATIONS
Farmers dependent monsoons , limits
possibilities of high investment on
agrochemicals.
Agrochemical market is different for
different crops and different states .
Eg: for cotton in south 12-15 sprays are
required whereas in north only 6-10.
Economic liberalization had major
impact.
Reduction in import tariffs.
Delicensing in pesticide industry.
Opportunity for exports
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FACTORS EFFECTING AGROCHEMICAL'S
MARKET GROWTH
Farmers incomes are rising
Aggressive promotion
Backward integration
Usage of agrochemicals is increasing
New and effective products are reaching Indian markets
Irrigated area is rising because of corporate irrigation
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CHALLENGES FACED BY INDIAN
AGROCHEMICAL INDUSTRY
Low capacity utilization : less land is used due to less facilities
Seasonality of demand
Expensive finance for industries
High inventory cost
Price cutting ( when season is about to off, dealers rush to clear stock)
Huge working capital required
Lack of indigenous research and development
Undisciplined marketing (requirement is not properly estimated)
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30
CHALLENGES FACED BY INDIAN
AGROCHEMICAL INDUSTRY
Low profit margins
Crop imbalance ( optimum consumption is difficult to realize , crops need less or
more chemicals)
Regional imbalance
Low selling price of agricultural products
Natural calamities
Environmental pressures (critics)
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MARKETING STRATEGIES FOR
AGROCHEMICALS
PRODUCT STRATEGY
Backward integration (low cost, improve quality, better margins)
Branding (more profitability)
Cost effective manufacturing process
PLACE STRATEGY
Aggressive distribution strategy by dealing directly with retailer.
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PRICE STRATEGY
High MRP and low selling price
Good working capital management (limited credit)
PROMOTIONSTRATEGY
Promotional efforts to change attitude (exhibitions , melas)
Farmer education
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EXPORT STRATEGY
In order to safeguard industry from unpredictable losses from domestic
market Indian firms should consider whole world as its market.(already
considering too)
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AMIT KULKARNI 02
CHINTAN DEDHIA 11
KIRAN VYAS 24
PRAVIN KOKATE 4234
Thank You
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