Approach to bringing in Certainty To input volatility GRAIN ASIA 2010 CONFERENCEMUMBAI

BATTEL LINES

PRODUCT INNOVATION NEW AVTAAR!!!! HONEY I SHRUNK!! And

Ground Reality

Food Security Incremental Population Growth & Incremental Required Food grain production YearPopulation Billion Annual incrase Actual Addition al Numbers ( Million) Prescribed Minimum Food grain quantity KG per person/annum Additional Food Grain Required (MMT) Actual Increase in Food grain production Gross Surplus/Deficit in Food grain Requirement MMT ,02,87,37, % % % % % % % % %

Impact of Input Volatility Input PriceShelf spaceConsistent EPS

Managing Input Volatility

Is there a single Tool A Billion Dollar Question

Tool CombinationSupply Ensure supply consistency Price Efficient Frontier tools

Modern Portfolio Theory Efficient Frontier Inefficient Portfolio Point A Point B Point C Risk (variability in returns)

Portfolio Theory Applied to Commodity Procurement Risk (variability in cost) Efficient Frontier Inefficient Portfolio Cost Point C Point B Point A

Lingo Has to Change JUGAAD SCIENTIFIC METHODLOGY

Approach Mindset Tools Proactive Approach All this will result into Consistent Shelf Space EPS Top Product quality

1/22/2014confidential20 Come gather 'round people, wherever you roam And admit that the waters around you have grown And accept it that soon you'll be drenched to the bone. If your time to you is worth savin' Then you better start swimmin or you'll sink like a stone For the times they are a-changin'. Bob Dylan RAVISHANKAR MANTHADirector- AgRisk (India) rsmagri