Your Partner in Agribusiness

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Presentation transcript:

Your Partner in Agribusiness

Privileged and Strictly Confidential Global Vision By partnering with farmers on an equitable basis, Global AgriSystem will position itself as India’s premier Supply Chain Managers, providing best quality fresh produce to retailers, exporters and processors. Global AgriSystem will revitalize Indian agriculture by introducing post-harvest technology and management skills of the highest international standard Global AgriSystem – Your preferred partner in agribusiness Privileged and Strictly Confidential

Privileged and Strictly Confidential Background Incorporated as Cebeco India [ jv with Cebeco Group Co-operative, Holland] on 13th January 1998 Now a Katra Group company, www.katra.biz India’s largest agribusiness services and solutions firm Offers consulting, technical assistance, post harvest technology and fresh produce Operates in India and Africa Privileged and Strictly Confidential

Privileged and Strictly Confidential Management Gokul Patnaik Chairman Chairman Katra Group Ramesh Vangal Director Director, Nine Rivers Kunal Kumthekar Managing Director S K Sharma M.D., Katra Phytochem A.T.Jacob Privileged and Strictly Confidential

Business Units Agribusiness Services Consulting & Technical Advisory Post Harvest Services Turnkey & Project Management Services Fresh Produce & SCM Solutions Privileged and Strictly Confidential

Team GAPL BOD & Chairman MD Supply Chain Management Marketing Finance Admin, HR & Legal IT & Systems Supply Chain Management Amaya Foods Pvt. Ltd. Sunshine AgriSystem Pvt. Ltd. Swan Cold Store Pvt. Ltd. Global AgriSystem-Agra Global AgriSystem-Ludhiana Avan AgroTech Pvt. Ltd. Consulting & Technical Advisory Advisory Services Market Survey & Entry Strategy Project Report & Feasibility Study Financial Services Turnkey & Project Management Engg. - Technical Services Bid Process Management Post Harvest Management Construction of PH Infrastructure Marketing of PH Chemicals Privileged and Strictly Confidential

Consulting & Technical Advisory Business Unit Consulting & Technical Advisory

Privileged and Strictly Confidential Overview India’s largest consulting and technical services provider Clients include Indian Government, corporates and international agencies Over 200 projects delivered covering pan India New business areas include agribusiness development in West Africa Privileged and Strictly Confidential

& Technical Advisory Services Scope of Services Consulting & Technical Advisory Services Projects Industry Services Project Finance Area Sector Market Survey Project Reports Business Plans Evaluation M&A Technology Audits Process & Protocols Engineering Design & Planning Tender Papers Procurement Technical Supervision Aid, Grant&Subsidy Partner Search Bank Appraisals Privileged and Strictly Confidential

Privileged and Strictly Confidential Clients Government of India Commerce APEDA Agriculture NHM DMI NHB NAFED NDDB SFAC NIAM Food Processing Industries Home Affairs Inter State Council Petroleum IOC Central Warehousing Corporation(CWC) International Agencies Asian Development Bank World Bank Common Fund for Commodity International Finance Corporation Food & Agriculture Organization Government of the Netherlands EVD Privileged and Strictly Confidential

State Government Clients NORTH Punjab Haryana Uttar Pradesh Himachal Pradesh Uttarakhand Jammu & Kashmir NORTH EAST Meghalaya Sikkim Arunachal Pradesh Nagaland Assam Tripura Manipur Mizoram SOUTH Andhra Pradesh Kerala Tamil Nadu Karnataka EAST West Bengal Orissa Bihar Chattisgarh Jharkhand WEST Rajasthan Gujarat Goa Maharashtra Privileged and Strictly Confidential

Privileged and Strictly Confidential Agribusiness Clients Tata Group Rallis Tata Chemicals Khet Se Hi-Tech Drilling A V Birla Retail Adani Agri Fresh Heritage Heritage Foods Fresh@ Hero Group Reliance Retail Chambal Chemicals & Fertilizers Field Fresh Foods Escorts Acme Fresh Kellogg Brown & Root, USA Nive bv, Holland Aviko bv, Holland Rixona bv, Holland Certis bv, Holland Servi Doryl SA, France Rohm & Haas Inc, USA Privileged and Strictly Confidential

Privileged and Strictly Confidential Partnerships IDFC, India ACI, USA ANZDEC, New Zealand HTSPE, UK Agriment, Holland Ernst & Young, India Price Waterhouse Cooper, India Deloitte Touche Tohmatsu, India Rabo Bank, India Privileged and Strictly Confidential

Turnkey & Project Management Business Unit Turnkey & Project Management

Privileged and Strictly Confidential Overview Integrated agribusiness, technology and service solutions Using knowledge base and relationship using technology engineered to Indian conditions in Custom growing 40,000 acres grain and cereals 5,000 acres vegetables 4,000 acres fruit orchards Agri Engineering & Project Management Fresh Produce Packhouses Cold Stores Distribution Centers Food Industry Technology Development Cheese & Paneer Processing Technology Privileged and Strictly Confidential

Privileged and Strictly Confidential Scope of Services Configuration/ Supervision Quality Checks Trials -- Project Framework Privileged and Strictly Confidential

Privileged and Strictly Confidential Projects Tata Chemicals Khet Se Packhouse & Cold Store, Malerkotla Punjab Punjab Agri Food Park Nursery, Packhouse, IQF Unit, Sirhind, Punjab Heritage Foods Packhouse & Cold Store, Madanapalli, Andhra Packhouse & Cold Store, Mulugu Medak, Andhra Field Fresh Foods Center of Excellence, Ludhiana, Punjab Custom Growing & Sourcing, national Aditya Birla Retail Retail F&V Sourcing, national Sunshine Farms 1000 acre farm, Packhouse and MA store, Uttar Pradesh HPMC Apple Packhouses Apple Juice Concentrate Plants Indian Hotels IQF & RTE, RTC Foods Escorts 40,000 acre custom growing Acme Packhouse & Cold Store, Gurgaon Servi Doryl Paneer Processing on Industrial Scales Privileged and Strictly Confidential

Fresh Produce Supply Chain

Privileged and Strictly Confidential SCM Model Agri Extension & Technology Transfer to small farmers Procurement Hubs at strategic locations Distribution Centers at Major Markets Activities Contract farming on 2000 acres around each facility for 1-2 national/regional products and 6-7 local products PHM to meet product requirements & customers needs Need based long term storage (ambient & controlled temperature/CA) Value added customized packaging for retail Privileged and Strictly Confidential

GAPL Model of Supply Chain Contract Farmer Aggregator Contact Farmer PH DC Food Processors Organized Retail Exports 20 April 2017 Privileged and Strictly Confidential

Business Model for SCM Refer Vans Own Retail/ Wholesale Network Minimal Processing Centre Sorting/Grading Ripening/Pre-cooling/ Drying Cutting/dicing Collection Centers Consolidation Aggregation Cold Storage Pre Cooling /Hydro Cooling Dry Storage Direct Procurement Contract Farming Distribution Centre Batch Making & Packing Dispatch Institutional /Corporate Sales Domestic Wholesale Markets Exports Backward Linkages Value Addition Forward Linkages Privileged and Strictly Confidential

GAPL supply chain network Existing hubs Nasik (Maharashtra) Indore (Madhya Pradesh) Sikandrabad (Uttar Pradesh) Agra (Uttar Pradesh) Ludhiana(Punjab) Solan (Himachal) Belgaum (Karnataka) Karur (Tamilnadu) Proposed Hubs- (2009 - 10) Kullu Chomu Valsad Guwahati Bhubaneshwar Anantpur Future Targets (2010-12) 14 units to be established in next 2 years for which 11 potential locations already identified Horizontal & vertical expansion of selected units Privileged and Strictly Confidential

Privileged and Strictly Confidential Supply Chain Network KULLU SOLAN LUDHIANA DELHI AGRA CHOMU GUWAHATI BULANDSHAHAR INDORE VALSAD BHUBANESHWAR NASHIK MUMBAI HYDERABAD BELGAUM ANANTPUR CHENNAI BANGALURU KARUR Pack House Existing Planned Distribution Centre Privileged and Strictly Confidential

Supply Chain Network - 2012 Delhi Kolkatta Mumbai Bangalore Karur Bulandshahar Solan Indore Ludhiana Ananthapur Agra Belgaun Kullu Sangli Kolkatta Guwahati Jalgaon Bhuwaneshwar Patna Mettupalayam Nashik Valsad Ganganagar Existing Under Imple Phase II Delhi Mumbai Bangalore

Where we want to be Particulars 2010-11 2011-12 2012-13 Turnover 114.01 Cr 167.73 Cr 212.27 Cr Gross Profit 35.79 Cr 51.07 Cr 64.04 Cr EBIDTA 24.75 Cr 37.66 Cr 48.68 Cr

Expansion-Phase-I Location Type Project Cost Karur Green Field 347.54 Lacs Solan Green Field 643.63 Lacs Belgaum Green Field 571.01 Lacs Jalgaon Lease 100.00 Lacs Kullu Lease 125.00 Lacs DC-Delhi Lease 75.00 Lacs DC-Mumbai Lease 75.00 Lacs DC- BangaluruLease 90.00 Lacs TOTAL 2,027.49 Lacs

Summary Particulars Project Cost Existing Units 2,458.14 Lacs Expansion Phase-I 2,027.49 Lacs Expansion Phase-II 1,757.03 Lacs TOTAL 6,242.66 Lacs Equity 2,797.77 Lacs Term Loan 2,283.53 Lacs Subsidy 1,161.31 Lacs

These 5 products make up 52% of consumers’ purchase basket STRATEGY: MARKET DOMINANCE THROUGH NATIONAL FOOTPRINTS & PRODUCT DIFFERENTIATION Product Development These 5 products make up 52% of consumers’ purchase basket

Sourcing SOURCING: AS A MEANS TO GET BEST QUALITY PRODUCE AT BEST MARKET PRICE Contract Farming:- Contract farming would be carried out through an agreement with farmers. Typically, the farmer will produce established quantities of an identified produce, meeting the quality standards and delivery schedule set by the company. Prices will be set up depending on the product either in advance or indexed to reference market(s). GAPL is already involved in the contract Farming in Products like Carrots, Onions, Grapes, Baby Corn etc. National Sourcing Team:- This team will be constituted at the Central level. This team will remain mobile identifying the orchards at different places all over India. This team will be involved in the sourcing of Fruits and vegetables across India. Guaranteed Off Take::- In this model Global Agri Systems Pvt. Ltd. Will enter into a contract with the large farmers or group of farmers having large acreage starting from 50 acres and above. GAPL will provide crop planning and technical know-how and other support including critical inputs, to those farmers for growing products, which will be marketed through company network 29

Sourcing SOURCING: AS A MEANS TO GET BEST QUALITY PRODUCE AT BEST MARKET PRICE Contract Farming:- Contract farming would be carried out through an agreement with farmers. Typically, the farmer will produce established quantities of an identified produce, meeting the quality standards and delivery schedule set by the company. Prices will be set up depending on the product either in advance or indexed to reference market(s). GAPL is already involved in the contract Farming in Products like Carrots, Onions, Grapes, Baby Corn etc. National Sourcing Team:- This team will be constituted at the Central level. This team will remain mobile identifying the orchards at different places all over India. This team will be involved in the sourcing of Fruits and vegetables across India. Guaranteed Off Take::- In this model Global Agri Systems Pvt. Ltd. Will enter into a contract with the large farmers or group of farmers having large acreage starting from 50 acres and above. GAPL will provide crop planning and technical know-how and other support including critical inputs, to those farmers for growing products, which will be marketed through company network 30

Market Development MARKETING: AS A STRATEGY TO INCREASE THE VALUE REALISATION AND ENHANCING THE INTRINSIC VALUE OF THE ORGANISATION Central Marketing: The central marketing team will coordinate with all the hubs. It will be involved from sourcing till the final distribution and sales of the products. Core Marketing Strategies will be developed and be repository of brand Verticals: Separate Marketing verticals will be developed for the five major crops like Onion ,Potato, Carrot, Tomato, banana. Execution of all the activities from sourcing till sales will be done by these verticals and coordination will be maintained with the hubs Packaging Concepts Packaging design for the brand will reflect the brand's attributes and positioning. The packaging design will be aligned to the various product offerings Distribution Distribution Networks at Chennai, Bangaluru, Mumbai, Delhi &Kolkatta to be leveraged for supplies and be developed as Cash & Carry points Brand guidelines for marketing materials A fixed family of colours with PMS, CMYK & RGB break downs. Rules of Typography with fonts, weights & sizes for future use. Appearance of logo/mark with placement position & size, etc. 31

SYSTEMS & PROCESSES MANAGEMENT CONTROL TOOLS: Each unit will be an Independent profit center, will have its own set of plans, strong systems and processes & corporate level strategic planning & monitoring Business Planning Planning at two levels – Unit and Corporate Unit level planning -Volume driven, Target Oriented, Responsibility for the top line & bottom line Corporate level planning - Policy driven, Strategic and long term decision making, National co-ordination Inventory Control & Sales Central MIS cell to monitor all the units for Inventory, Procurement and Sales. Reporting on day to day basis Accounts & Finance Day to day book keeping at the unit Corporate Finance Team to look after the capex, credit, internal & statutory audits Frame policies and guidelines regarding book keeping formats and accounting practices Sourcing & Quality Corporate sourcing strategy based on National Marketing plan. Implemented by units Quality specifications, monitoring processes and guidelines to be developed by National team Traceability to be ensured at all levels 32

RISK MANAGEMENT: AS MEANS TO REDUCE THE HAZARDS AND STREAMLINE THE BUSINESS PROCESS TO IMPROVE THE EFFICIENCY Risk Management Strategic Risk: Sourcing Decisions of what to source and from where to source Operational Risk: Risk In terms of Low Shelf Life of Produce , Cold Chain Breakdown, Quality Issues Market Risk: Market Fluctuations in Terms of Demand & Supply, export market behavior Financial Risk: Unexpected Changes in Prices or rates Risk management cell will be constituted at corporate level for live assessment of risks for each unit and its seasonal operations and work out mitigation strategies. This cell is expected to be operational by 2012 33

Organogram 2012 – Corporate (SCM) Board / CHAIRMAN Managing Director Chief Finance Officer Head Marketing Manager Strategic Planning & Inst Sales Manager Project Implementation Manager Logistics / Distribution Senior Manager Finance Manager Quality Assurance Internal Auditors Manager MIS Accounts Executive Regional Heads (Sikandrabad, Nasik, Ludhiana, Kolkatta), Avan Agro 20 April 2017 34

Privileged and Strictly Confidential Amaya Food -Nasik GRADING LINES COLD STORE PACK HOUSE Privileged and Strictly Confidential

Discussion with Stakeholders Privileged and Strictly Confidential

Privileged and Strictly Confidential Nursery Privileged and Strictly Confidential

Privileged and Strictly Confidential A Field Day In Nasik Privileged and Strictly Confidential

Sunshine -Sikanderabad Amidst Growing Fields Privileged and Strictly Confidential

Improved Farm Equipment ROTAVATOR PNEUMATIC SEEDER LASER LEVELLER Privileged and Strictly Confidential

Privileged and Strictly Confidential Carrot Field Privileged and Strictly Confidential

Carrot – Just Harvested Privileged and Strictly Confidential

Privileged and Strictly Confidential Indore Cold Store Privileged and Strictly Confidential

Visit us at www.globalagri.com Thank You Your Partner in Agribusiness Visit us at www.globalagri.com