eFarm's financial plan and investment requirments (exec summary). Version 1 . Nov 2009 . PDF format

1. eFarm : A Farmer To Consumer Agri Supply Chain Network
Investor Presentation : Executive Summary
Note:
(Please refer Overview presentation & Financials spreadsheets for details)

2. Farmers / Suppliers Buyers Collaborators
Star Hotels / Restaurants : Institutions
Over 1500 farmers and associations across Oriental Cuisines pvt. Ltd (Hot breads chain)
MOP Vaishnava Women’s college – Dept. of Food
Tamilnadu , Andhra , Karnataka & Kerala VGP Golden Beach resorts
Science & technology
currently in the network : Savera Hotel
Leading hotel & catering chain (in pipeline) Tamilnadu Agri University – Agri Business Incubation
High end restaurant in Besant nagar (pipeline) ICRISAT, Hyderabad
Conventional farmers/precision farmers PSG College of Tech – Business school, Chennai
Retailers :
Green earth, Nilgiris Veggibazaar.com ICFAI Business school, School
Precision Farmers association, TN Largest F&V retail chain in TN (in pipeline) Hospiexchange
Satguna Agro , Thanjavur J’s Organo store, neelangarai
Raj varadarajan farms , padalam Five Star Classic, Thiruvanmiyur Microfinance and rural banking
Banana farmers association, TN Universal, Tambaram (in pipeline)
Indian Bank – Microsate II
Fast food :
Dept. of Horticulture & Agri IFMR
Pizzaguy
marketing, TN government OVG Equitas
GPS Agro , Cochin Sandy’s , Karma Café
Institutions: NGOs
Organic farmers Voluntary Health Services Hospital, taramani RASA – School for Special Children
Earth trust , Ooty Kalyani hospital, Mylapore Nandini – Voice for Deprived
Venkateshwara hospital (pipeline) Banyan
Ecoville
ISKCON Chennai Nivedita
Rajagopal Farms, Nanmangalam Small – mid range hotels & caterers
SIMPLE – Organic farmers NDS – Networking & Dev. Centre for NGOs
Bharani hotel, Thiruvanmiyur
Exnora (in pipeline)
association , Nellore Picnic plaza, M fiylapore
Rayar mess , Mylapore Samanvaya
Organic Farmers Group of India
(AOFG) Annai Mess
SS Annamalai staff canteen Consultants :
Jayam caterers , Velachery Dr. Vivek Pathiavadi ,Rural Supply Chain
Meenakshi caterers , Mylapore Management
Leading industrial caterers (in pipeline) Dr. Padmanabhan , Retired Toxicologist , Germany
LocalTraders and street vendors Dr. Easwar, Management Faculty, IIT Delhi , Rtd
Hamilton bridge area vegetable & fruit vendors
Wing Cmdr Air force One
association
Dr. Shridhar, Entymology, TNAU
Status as of Nov 1 , 2009 Thiruvanmiyur market traders association
Food Processing
CuttiesByKuttys Rural entrepreneurs
Exporters (pipeline) Travel another India , Gouthami
Star Agro (Nellore) - Banana

3. 32/kg 42/kg
Eg: Ooty Carrots (As of 29th 28/kg
June 2009) 24/kg
22/kg
20/kg End
customer
5/kg 12/kg price
Farmer’s Regional Metro Terminal Neighbourhood Kirana Branded Premium
market mandi Market market stores, Retailers Grade
(In Ooty/ (Mettupala (Chennai) (Thiruvanmiyur Push (Export)
Kothagiri) yam) Chennai) carts
500 % Price hike
Source : Ooty market traders, Chennai traders, indg.in
 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

4. 30/kg
Export prices
become
Eg: Ooty Carrots (As of 29th 19.75/kg viable and
June 2009) competitive
13.5/kg End
End customer
6.5/kg s see 30%
Farmers are Wholesale customer drop in
paid 20% buyers see prices
higher than a 33%
price
current drop
prices to
ensure
profitability
Farmer eFarm wholesale eFarm retail
(at Mylapore (at eFarm powered outlets
Distribution centre) and customer deliveries)
Reduced from 500% to 200%
 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%

5.  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
Income Distribution
10%
Website
1% 16% registrations
Income from
produce sale
19% Advertisements
44%
Franchisee fees
7%
3%
Consulting

6. Year1 Year2 Year3 Year4 Year5
• Establish • Biggest Local player • Expand operations • Biggest Regional • Biggest National
(Chennai) in agri regionwide (S.India) Player (S.india) level player in agri
framework for sourcing & supply sourcing
• Establish export • #1 expert in agri
core operations • Kickoff agri oriented units consulting, market • #1 supplier to
• Establish business consulting • Launch online agri research export oriented
hub/spoke division produce auctions • #1 supplier to units
operations within • Establish Agri and Third party domestic agri • 30 Plus : 30Cr profit
Tamilnadu with processing and logistics services processors , agri by Year 5 , ROI of
Chennai as waste conversion • Profit in 3 : waste/byproduct 30%
pilots Become fully industries
destination
• 15 by 2 : 15 crores profitable by Year 3 • Kickoff national
• Launch B2B turnover by year 2 level pilots of model
portal
• 3 in 1 : 3 crores
turnover by year 1

7.  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

9. Please see attached Excel spreadsheet for balance sheet, sales
projections , funding summary , financial ratios etc.,
Sales , Profit Projections
3500
3000
2500
2000
1500 Sales
1000 Net profit before tax
500
0
-500
Year 1
Year 2
Year 3 ** At end of 3 years
Figures in Rupees Lakhs

10. eFarm Please see spreadsheet for details
Year End Summary
Extended Projections till 6 years
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

11. Please see spreadsheet for details

12.  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

13. 2009 2010 2011
Task Name ID Start Finish Duration
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Build supply chain (physical)
1 8/17/2009 3/26/2010 32w
network
Setup/Integrate collection centres 2 8/17/2009 12/4/2009 16w
Setup/Integrate distribution
3 8/17/2009 12/4/2009 16w
centres
Setup/Integrate storage areas 4 12/7/2009 3/26/2010 16w
Setup/Integrate Transport logistics 5 8/17/2009 1/29/2010 24w
Setup Training centres/Rural
6 12/7/2009 3/26/2010 16w
outreach points
Build IT infrastructure 7 8/17/2009 12/31/2010 72w
Build Supply chain mngt backbone 8 8/17/2009 12/4/2009 16w
Build B2B customer facing agri
9 8/17/2009 1/29/2010 24w
trading portal
Portal kickoff 10 2/1/2010 2/1/2010 0w
Build SMS/Mobile/Voice interfaces 11 12/7/2009 1/29/2010 8w
Setup call centre/BPO operations 12 12/7/2009 1/15/2010 6w
Enhancements/Thirdparty
13 2/1/2010 12/31/2010 48w
interfaces
Operations(Ongoing) 14 8/17/2009 1/13/2012 126w
Fund raising – First
15 8/17/2009 11/6/2009 12w
round(ongoing)
Expand pilot to add new farmers &
16 11/9/2009 2/26/2010 16w
bulk customers
Setup alliances and tie-ups 17 11/9/2009 2/26/2010 16w
Planning/Monitoring /Process
18 8/17/2009 1/13/2012 126w
improvement of daily ops
Marketing and sales 19 3/1/2010 5/20/2011 64w
Expand sourcing network of
20 3/1/2010 10/8/2010 32w
farmers through alliances
Expand customer segments
21 3/1/2010 10/8/2010 32w
through franchising/ distributors
Expand logistics network through
22 3/1/2010 10/8/2010 32w
tie ups
Participation in trade shows, agri
23 10/11/2010 5/20/2011 32w
events
Increase Supply chain Value
24 3/29/2010 3/29/2010 .2w
addition
Setup food processing/value
25 3/30/2010 9/13/2010 24w
additionb trial plant
Setup waste conversion trial plant
26 3/30/2010 9/13/2010 24w
Agri Business Consulting 27 9/14/2010 1/2/2012 68w
Data analysis/research insights 28 9/14/2010 12/6/2010 12w
Customer driven production
29 12/7/2010 2/28/2011 12w
planning
Agri entrepreneur training/
30 3/1/2011 1/2/2012 44w
consulting
Initiate Long term expansion 31 8/17/2009 8/17/2009 .2w
Second round fund raising 32 6/21/2011 10/10/2011 16w
Regional phased expansion-pilots 33 10/11/2011 1/30/2012 16w
National phased expansion-pilots 34 1/31/2012 5/21/2012 16w

14.  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%