Revenue Model of Krishi Pragati Kendra

Introduction 

AgroecommerceNetwork Pvt Ltd. (ANPL) has been established to promote "TotalQuality Agriculture". ANPL feels that farmers have been denied with due to traditionalthinking in the sector.

To achievethis, ANPL creates the physical network of farmers through setting up of Krishi Pragati Kendra's (KPK) at 5village level and also backward, forward and services integration with theKendra's.

KPK has beenestablished to promote two way flow of adequate price discovery toproducers/sellers and consumers/buyers. Thus, Krishi Pragati Kendra (KPK) isthe facilitation centre for such possibilities of increased earnings for ruralsegments. 

Revenue Model

Revenue model is so designed that revenues areshared amongst the network according to the value additions made by them. There are threesources of revenue generations and the same are shared with the network as below.

	Through registration	Through input	Through output
KPK Owner (Inclusive VR)	15%	40%	40%
KPK(C)	5%	20%	20%
TC	3%	12%	12%
DLC	2%	8%	8%
Total sharing	25%	80%	80%
ANPL Share	75%	20%	20%

For details, Agroecommerce Network Pvt.Ltd. can be contacted at:

 A 346, South City-I Gurgaon Haryana –110048. Phone Numbers are - (0124)4263612, (+91)9810391813 Email : mail@agroecommerce.com.

To go to their website www.agroecommerce.com, please click here

Interview with Vijay Mahajan: Developing Business Models for Microfinance Plus Services

Vijay Mahajan, Managing Director of BASIX in India in an interview mentions that microfinance needs to innovate and develop inclusive business models to stay relevant.

.

“Right from the beginning we’ve believed that credit, or more broadly microfinance, is a necessary, but not sufficient condition” to alleviate poverty in India, he says.

 A whole range of “add-ons”–livelihood promotion, technical assistance, training, productivity enhancement, market linkages, creating producer organizations that help poor producers get better terms for their goods–in addition to financial services are needed to really have an impact. At the same time, Mahajan admits that these services don’t yet have clear revenue models. BASIX has spent the last six years first pilot testing, then building revenue models for these services. Today BASIX has a quarter of a million clients who pay for agricultural extension and livestock development services, and more than a million customers paying fees for microinsurance. 

Asked about the group lending methodology, Mahajan says that for very small loans - below USD 100 - group lending is a good way of reducing transaction costs. But he criticizes MFIs for their lack of flexibility in meeting the changing needs of poor clients as clients move to bigger loans, and for being wedded to one methodology: “They need to innovate”, he says.

“Unfortunately our whole sector globally, not just in India, is much more focused on microcredit, rather than microsavings,” says Mahajan. What poor households are looking for, he says, is composite financial services–savings, insurance, remittances, and credit services all from the same outlet. “Right now the regulatory frameworks mean that these are all silos, and it’s hard to do it from the same distribution outlet.”

Posted on Nov12, 2009 at http://www.cgap.org (To read, please click here)

 

Harvard Business Review Blog: Indian Tales of Inclusive Business Models

Inclusive business models has become theeconomic development mantra for both Indian politicians and CEOs. The authors  traveled across India to understand pioneering businessmodels being developed by the private sector.

Traditional non-profit philanthropic activitiesor CSR (corporate social responsibility) had modest societal impact and weredevoid of financial motivation - so essential to scale them up. Today, however,that old model is being retired. Many Indian firms as well Indian subsidiariesof MNCs are now adopting new business models that can deliver more value at lesscost for more citizens- be it in agriculture, affordable housing,healthcare, energy, education, and financial services to those living in themiddle and bottom of the pyramid.

The article talks about the efforts madeby:

• PM Manmohan Singh.
• Ellen Kullman, CEO of DuPont.
• Geetu Verma, Exec Director of Innovation at PepsiCo India.
• Sandhya Shekar, CEO, IIT Madras Research Park.

Successful business models mentioned:

• PepsiCo experience with DSR -
  PepsiCo India and the Punjab Agricultural University have co-developed atractor-driven machine to systematically implement direct seedingof rice (DSR), an eco-friendly technique that can reduce water use in ricepaddies by 30% and cut carbon emissions by 70%. DSR is a boon for Indianfarmers who are reeling under the effects of water scarcity. DSR's initialsuccess has led PepsiCo to team up with the IndianAgricultural Research Institute to deploy DSR nationwide. Verma pointed outthat PepsiCo's partnershipswith research institutions, state governments, NGOs, and local communitieshelp make the company's inclusive business models both scalable and sustainable.
• MASARD  - sanitary napkins production by/for poor women
• Akshaya Kalpa  - integrated organic dairy venture
• Aakar Asha - center for enabling physically disabled
• Successful profitable social enterprises such as DesiCrew, which employs many rural women as Business Process Outsourcing (BPO) workers

Authors:
- Navi Radjou is ED, Centre for India & Global Business (CIGB) at Judge Business School, University of Cambridge (UoC)
- Dr. Jaideep Prabhu - Jawaharlal Nehru Professor of Indian Business and Enterprise, Judge Business School, UoC
- Dr. Prasad Kaipa - CEO Coach in Silicon Valley and a senior research fellow at the Centre for Leadership, Innovation, and Change at the Indian School of Business, Hyderabad
- Dr. Simone Ahuja - CEO and founder of Blood Orange Media

Posted on Jan5, 2011 at http://blogs.hbr.org (To read, please clickhere)

Digging Gold in Rural India: Agri-Tourism

Agri-tourism is a Rs 4,100 crore opportunity and can lead to innovative business models.

For Sunil Bhosle, a farmer in the Jogwadivillage in the Baramati taluk of Pune district, his 13 acre land meant an annual income of Rs 60,000-75,000. Exposed to the benefits of agri-tourism six months ago through the Agri Tourism Development Organization (ATDO),he opened his farms to tourists in June last year, charging each Rs 300-350. He has sincewelcomed 150 tourists with traditional garlands and authentic Maharashtriandelicacies. 

The effort translated into an additional annual income of Rs 15,000, afterdeducting an equal amount in expenses. He is now constructing two more roomsfor tourists...

(To read the entire article, please clickhere)

Business Model of the Largest Agriculture Insurance Company of India

Introduction

AgricultureInsurance Company of India Limited (AIC) is a public sector undertaking headquarteredout of New Delhi, India. It is promoted by General InsuranceCorporation of India (GIC), NABARD and the 4 Public Sector General Insurancecompanies. AIC has taken over the implementation of National AgriculturalInsurance Scheme (NAIS) which until Financial Year 2002 – 03 was implemented byGIC.

Products Offered and Present Scale

AIC currently offers area based and weather based crop insurance programs inalmost 500 districts of India. It covers almost 20 million farmers, making itone of the biggest crop insurers in the world.

Business Modelof AIC 

An overwhelmingmajority of AIC's business is derived from the compulsory nature of cropinsurance at the time of an agricultural loan, as directed by the Government ofIndia.

Underwriting& Claims:

The chain of intermediaries involved inunderwriting and claim settlement are as follows:

Farmer ->Primary Agricultural Credit Society (PACS) -> Bank Branch -> Nodal Bank-> AIC

• A farmer iseither categorized as 'Loanee' (has taken an agricultural loan from aparticipating financial institution) or 'Non-Loanee' (has only bought insurancecover without a loan involved). The farmer may interact with a local PACS inhis area or with a Bank Branch directly.
• A participatingbank may be of three types - (1) Regional Rural Bank (2) Commercial Bank (3)District Central Cooperative Bank (DCCB). One or two bankbranches in each district in India would be designated as a Nodal Bank. Thisbank would interact directly with AIC.
• A consolidated'Declaration' which lists insurance parameters for an entire region isforwarded by the PACS/Bank Branch to the next level until it finally reachesthe Nodal Bank. The Nodal Bank then remits the premium and information to AIC.

At the time ofclaims disbursement, the cycle reverses.

(To read the entire article in wikipedia, please click here)

Contents of a Training Course on Business Models

It is interesting to look at how business models are taught within the country.

One such program on the web is from Techmate Leadership Academy which conducts a course on starting a business and running it profitably.

Modules that are covered in the course are as  follows:

1. Start up Basics
2. Setting up Office
3. Business Plan
4. Capital allocation
5. Bootstrapping
6. Strategy
7. Revenue Model
8. Forming a team
9. Creating Systems
10. Financial Strategy
11. Scaling up

  Benefits of the program

• Gives a clear road map for transition from an employee to an entrepreneur. 
• Helps you to lay out a clear strategy for starting a start up
• How to enter into low investment businesses and make descent profits.
• How to convert your passion into profit.
• How to build a company from scratch.

Duration: 2 Days (Any Saturday and Sunday) Fee: RS 5000 /- per Participant.

(For the entire article, please click here)

Reuters Market Light: Business Model Innovation for Growth

Reuters MarketLight (RML) is a unique, “bottom of the pyramid”, mobile-based informationservice for farmers operational in thirteen states of India from Thomson Reuters.

Launched inOctober 2007 in three states of India  – Maharashtra, Haryana and Punjab – thecompany expanded to 13 states by 2009. The rapid take-up of RML’s subscribed service –100,000 farmers in 12-15,000 villages in less than two years shows it has aprofitable business model.

RML providesindividual farmers with “customised, localised and personalised” weatherforecasts, local crop prices, agricultural news and relevant information (i.e.crop advisory) – in the form of SMS messages sent to their mobile phones intheir local language.

This allowssubscribing farmers to plan irrigation, application of fertilisers, and harvest– thus, managing some of their risks, as well as to decide when and where tosell their produce to maximise profit.

(To read the article in detail, please click here)


For additional information click here to read "RML is an easy-to-use card sold in thousands of outlets"

Choosing Right Business Model Can Create Success in Start-Up Ventures in Agricultural Sector

Lack of infrastructure in agriculture can lead to successful models

"Everyday twenty-five thousand new businesses are registered in India and more than this number of businesses get closed down everyday..."

 

This article by RajatK. Baisya documents the business model and success story story of StarAgri Warehousing and Collateral Management started by four youngentrepreneurs. Started with home savings of Rs.20 lakhs (INR 2 million),the business has grown in two years to Rs 2.86 crores (INR 28.6 million) insales and Rs 86 lakhs (INR 8.6 million) in profit with clients like ITC, Britannia and Adani.

Dr. Rajat K. Baisya is the editorial consultant to www.pfionline.com and Professor of Marketing and Strategic Management at Department of Management Studies, Indian Institute of Technology, New Delhi, India

(To read the article in detail, please clickhere)

Indian Premier League: Business Model in Cricket: India Cements Limited

The Indian Premier League presents a fascinating study of how passion in a game in parts of the Commonwealth can lead to creation of a multibillion dollar industry within a few years led by ten regional franchisees spread across India.

Franchise history

The Chennai Super Kings are a part of the Indian Premier League. The franchise is currently owned by India Cements, who paid US $91 million to acquire the rights to the franchise for 10 years in 2008.^[3] N. Srinivasan, Vice-Chairman and MD of India Cements Ltd., is the de facto owner of the Chennai Super Kings and also the Secretary of the BCCI. (to know more, please click here for wikipedia)

Through this presentation, India Cements Limited wants to showcase the  business model and income generating potential of the franchisee. The presentation is quite detailed and a good read.

The presentation has been put together by Alchemy Share & Stock Brokers Pvt. Ltd., Navsari Building, 4th Floor, 240 Dr D. N. Road, Fort, Mumbai: 400 001. India (Tel): 91-22-6639 9100 (Fax): 91-22-2203 3575

The presentation can be accessed on the webpage http://www.citehr.com/103742-ipl-business-model-3.html (for url, please click here)

Indian Premier League: Business Model in Cricket

Introduction about IIFL (http://www.iiflcap.com/ )

IIFL Capital is the Institutional Equities division of India Infoline, providing equity and research services to domestic and foreign institutional investors. IIFL is equipped with a research team of over 25 analysts covering more than 150 stocks. IIFL does trades for most local institutions and over 100 global investors in India.

The presentation is available on http://www.citehr.com/103742-ipl-business-model-3.html. You can access the PDF file on the presentation by IIFL on Indian Premier League Business Model (for url, please click here)