2. Executive Summary
About • Samridhi runs a dairy venture that creates livelihood solutions for
Ultra Poor Families (< $1.25 / day)
• Outreach: 226 Members in 12 villages in Barabanki District, Lucknow
• Incorporated as a Pvt. Ltd. since 2010
USP • Unique concept and delivery
• Providing cattle to those who can not afford it
• Use of local resources and skill development of villagers
• Holistic approach to livelihood enhancement
Funding Requirement • ~INR 3 crores over next 2 years
Use of Funds • ~ INR 30 lakhs required to set up operations in 1 cluster (18 villages)
• Target 12 clusters over next 2 years:
• INR 1 cr for infrastructure + INR 2 cr for livestock
Funds Raised Till Date • Total of INR 64.62 lakhs have been infused
• INR 28.62 lakhs promoters’ equity, INR 31 lakhs FDI, INR 12 lakhs loan
Management Team • Extensive experience of over 70 years with target clientele through
Agri, Dairy, IT, Microfinance, rural Retail backgrounds
• Extensive experience in U.P.
• Distinguished Board of Directors with diverse backgrounds
Exit Possibilities • Further rounds of investment from VC / PE
• M&A with another rural supply chain company or large dairy producer
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• Buy back after organic growth of 3-5 years
3. About Samridhi
Inception: Objective was to provide business
solutions in rural supply chain. Along with UPAYA
(Ex-UNITUS team) conceptualized idea of micro-
leasing to Ultra Poor families in which family pay
through its labor
Mission: To increase the productive capacity of
the rural producers by providing sustainable
small scale business solutions in a socially
responsible manner
Vision: To create livelihood solutions for
1,00,000 families across over 1000 villages and
creating 20,000 direct jobs by the year 2017
4. Market Opportunity
District Rural Marginal Agri
Population Farmers Laborers
Sitapur 3,944,454 2,040,347 1,073,867
Barabanki 2,927,736 1,485,640 781,915
Lucknow 1,550,737 189,279 58,384
Total 3,715,266 1,914,166
Target Segment Economic Indicators Proposed Solution
and Gaps to be filled
• Landless laborers • No skills • Milk production and livestock
• Marginal farmers • No productive assets ownership as a livelihood option
with low land • PPI™ of less than 18 • Agriculture credit with
activity • Land size less than 1 acre moratorium on payments
• Almost no livestock • No forward linkages
• No access to farm equipment
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5. Pain Points and Intervention Required
Pain Points in Service Samridhi’s Approach
• Low milk production • Holistic approach:
• Infusion of patient capital
• Low milk rates • Access to assets on micro-leasing
• Skills
• Information dissemination on best practices
• No access to assets for milk production • Inputs
• Marketing of produce
• Localized solution:
• Use of local resources
Low Irregular • Skill development of villagers
resources incomes • Long term relationship with villagers
• Livestock healthcare services:
• De-worming and vaccination
Lower Borrowing at • Artificial insemination
Surplus high cost • Cattle feed at the doorstep
• Para vet services
High cash • Pricing:
Outflow
• Regularity of payment for milk
• Arrangement for fair price discovery of final produce
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6. Business Model: Unique Concept and Delivery
Milk collection Milk Sale
• Milk chilled in
Non-member • 1 cow or 3 goats give on an avg
BMCs to increase
(already cattle 4.84 lt / day
shelf life
• Members pledge 900 lt / year
owners) • Sold to Swadesh
• Additional purchased from
Dairy for
members and non-members
distribution in UP
Client
Member
identification Livestock distribution
Member (to 1 cow or 3 goats
• Legal contract •
whom Samridhi • Member selection • Ownership of original
gives cattle) crucial to success cattle granted after 3
of business model years
in long term
Livestock rearing Offspring handed back to
• Goats bought from Goat Trust
• Cows bought from cattle fair
Samridhi
• Reared at Samridhi’s farm for 2 weeks • Goats: 1 female kid per goat per
• De-wormed and vaccinated year handed back
• Productivity checked to meet the min • Cows: 2 she-calves handed back
yield requirement after 3 years
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7. Client Member Selection Process
Training:
Shortlisted Clients
brought to the farm
Household Surveys to undergo cattle
conducted: rearing training
Chosen families need Security Amount
dairy as a means of collected, and cattle
livelihood handed over
Information Three standard
Dissemination: indices measured:
PPI, HHI and Asset
Chosen villages are
Index – chosen
targeted, village
clients have Progress Out of
meetings conducted Household
combined HHI and AI Poverty Index Asset Index
Interested parties of <10, and PPI <20 Index (HHI)
(PPI)
register their names
Families also • Measures the • Measures the • Measures the
evaluated on the overall capacity physical availability of all
basis of willingness of a household household kinds of
and ability of taking to emerge out status – household
care of cattle of poverty materials used assets and the
including family to construct the monetary value
size, basic home as well as attached to
assets, family size w.r.t each
occupation, etc. members in the
household
8. Highly Profitable for Client and Samridhi
Specifics Client’s Benefit Samridhi’s Benefit
Benefit due General rate given by the milkman is INR INR 3/Lt margin between purchase
to better 15/lt. Samridhi pays INR 20/lt on the price and sales price
price of basis of Fat and CNF
milk
Benefit Samridhi delivers feed at the client’s INR 20/bag as Samridhi buys bags in
from cattle- doorstep at INR 10/bag less than the bulk
feed market price
Benefit Clients pay a vet fee of INR Additional sales of cattle feed and
Cattle Owner from vet 20/inspection: Specialist visits each medicine
Non-Member services village in an organized Health Camp
Specifics Client’s Benefit Samridhi’s Benefit
Pledged About 900 lt/year is pledged to Samridhi About INR 10,800/year
milk to for which Samridhi pays a fixed fee of INR
Samridhi 600/month
Milk over Client gets paid on the basis of quality of INR 3/lt margin between purchase
the milk on weekly basis prize and sale prize => INR
pledged (just like non-members) 2,700/year margin as client livestock
quantity produce around 1700 lt / year
Calves Clients get to keep the original animal and INR 6,000 as terminal value of calves
Cattle Rearer – half of the calves borne during the
Member (cattle contract period
given by Samridhi) 8
9. Current Status of Operations
• First piloted the model in April 2010 at Deva Block of Barabanki District in U.P:
• Barabanki: Marked as ‘A’ category district with social and economic performance below
the National Average
• Deva: Rural block with agriculture and animal husbandry as main activity
• Currently operating in 12 villages in UP
• Livestock owned: 23 cows and 54 goats
• 41 members: 23 cow beneficiaries, 18 goat beneficiaries
• 185 non-members from whom Samridhi collects milk
• Distribution tied up with Swadesh Dairy (Gopaljee Group) for distribution in UP
• Constantly measure and monitor impact created:
• Collects baseline indicators to capture social metrics including the PPI™
• Housing Index
• Nutritional Index
• Education Levels
• Cash Flow of households
• Repetitive surveys every quarter to assess impact on households 9
10. Holistic Development Enabled with Partnerships
Sanchetna Financial Services Pvt. Ltd.
• Partnership since April 2010
• Provide financial products: Cattle Insurance, Cattle Loans
UPAYA Social Ventures
• Formal investor since October 2011
• Provide financial and advisory support
The Goat Trust
• Provides livestock procurement and para vet services
• Purchased goats in two batches: December 2011 and March 2012
Swadesh Dairy
• Marketing Partner since March 2011
• Responsible for packaging and retailing of milk
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11. Scalability Proposition and Milestones
• Region sought to scale up to: Central UP
• Identify clusters of 12 to 15 villages with large number of small and marginal farmers /
labourers with no fixed source of income
• Unit model set up at the centre of village, thus ensuring centralised system of service
distribution and collection
• Each cluster / unit model comprises of:
• ~18 Village Collection Centers
• 100 families that will be given cattle (members)
• 480 families that will be non-members
• 1 BMC + supporting infrastructure
• Actively add more partners for distribution - currently in conversation with 2 partners
• Plan to reach out to 12 clusters (288 villages) by March 2014
Jun’12 Sep’12 Dec’12 Mar’13 June’13 Sep’13 Dec’13 Mar’14
BMC 1 3 4 4 10 12 12 12
Villages 18 40 70 96 160 250 288 288
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12. Unit Economics and Use of Funds
• Capital Requirement for one unit (catering to ~18 villages, ~580 families)
Item Unit Investment (INR)
Bulk Milk Cooler (2000 lt) 1 5 lakhs
Milk Testing Equipments 1 per village collection center 7.2 lakhs
Cows 50 10 lakhs
Goats 150 7.5 lakhs
Grand Total 29.7 lakhs
• Equity Requirement and Impact Metrics
Mar’12 Mar’13 Mar’14
Number of Units 1 4 12
Equity Requirement (INR) 89.1 lakhs 2.37 crores
(Unit Requirement x Additional Units)
Direct Jobs Created 47 440 1320
Total Milk Producers Benefitted 185 1920 5760
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13. Strong Experienced Team
Lokesh Singh Sachita Shenoy
( Promoter/Director) Director/ Advisor
• Seven Years of experience in Micro Finance • Over ten years of experience in developing social
• Sr. Regional Manager – SKS Microfinance enterprises
• Program Officer – Naandi Foundation • Executive Director – UPAYA Social Ventures
• MBA- IRMA, B Tech- HBTI, Kanpur • Director of Global Programs, UNITUS
• Process Excellence Awards – Planet Finance • MBA – University of Chicago
Niraj Pareek Christopher Turillo
(Promoter/COO) Director/ Advisor
• Six Years of experience in HR and Micro Finance • Co-Founder – Medha
• Executive – HR Accenture India • Over seven years in the development sector
• MBA- XLRI – Accenture Academy • Manager Business Development - SKS
• MBA – University of Chicago
Surabhi Rana Sanjay Dhaunta
(Promoter/ Advisor) (Promoter/ Advisor)
• IRMA Graduate with over 8 years of experiences • IRMA Graduate with over 8 years of experience in
in rural sales and distribution rural sales and distribution
• Work experience of over 4 years with AMUL in • Has been with AMUL since last eight years
strategy department • Currently posted as Sr. Manager – Product for
• Post AMUL has been with Agri Input industry North and East India
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14. Organizational Structure: Current
Top Management
Lokesh Singh,Niraj
Pareek
BD- Community
BMC In Charge
Associate
Village Collection Para Vet /
Field Associates Cattle Rearers
Centres Pashu Sakhi
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15. Organizational Structure: Way Forward
C.E.O
C.O.O C.F.O
Manager- Manager- Manager- HR/ Manager- Manager-
Sales Procurement Admin Systems Audit
Field
Unit Manager BMC In Charge
Associates
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16. Competitive Advantage
Attributes Local Private State NGO Samridhi
Player Company Player
Asset Leasing
Credit on Input
Advisory Services
Fair and Transparent Pricing
Regularity of Payment
Experienced Management
Services at door step
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17. Assumptions for Financial Projections
• Every non-member gives 4 LPD (Lt/day)
• Margin of INR 3/Lt for non-member
• In case of member only payment is fixed wages for the
pledged milk
• Each member gets to make about (INR 2.4*30*20 = INR 1440)
per month as variable pay
• Margin from cattle feed is INR 20/Bag and consumption is
about 1 bag/cattle/month
18. Financial Projections:
Social and Financial Profitability (INR lakhs)
Revenue 2011-12 2012-13 2013-14 2014-15 2015-16
Milk Sold 100.98 331.6 1022 2245.3 4890.0
Other Income 1.82 3.8 11.7 27.98 55.97
Gross Income 102.8 335.4 1033.7 2473.28 4946.00
Expenses
Milk Bought 93.72 256.9 79.18 1894.5 3788.9
Salaries and Overheads 11.8 50.67 120.9 255.6 489.7
Op. Exp. 8.7 8.12 29.2 67.02 135.8
Interest 2.48 1.23 0 0 0
Depreciation 0.7 1.92 6 13.3 26.64
Total Expenses 117.4 318.8 947.99 2230.4 4441
Net Profit Before -14.6 16.55 85.7 242.6 505
Tax
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19. Risks and Mitigants
Risk Factor Source Mitigation Strategy
Lack of Productivity of cattle Expected quantity is function of
Standardization variable cow productivity making sure that
the member is not penalized
Scalability Difficulty in procuring Partnership with The Goat Trust to
cattle in large numbers buy and maintain goats
Sourcing of cattle No formal market for Purchase through Agent with buy
cattle back guarantee
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20. Towards Prosperity...
Thank You
Samridhi Agri Products Pvt. Ltd.
5/82 Vipul Khand
Gomtinagar, Lucknow
0522- 4076350
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