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GOING BANANAS WITH MAHABANANA

The Way Forward: Providing end-end solutions from farm to retail

Team: BhaagXIMBhaag, XIM Bhubaneswar


Members Institute ID Email ID Academic Year
Preeti Dave UH12036 uh12036@stu.ximb.ac.in 2nd Year
Amit Nanda U112122 u112122@stu.ximb.ac.in 2nd Year
Amresh Sharma U112123 u112123@stu.ximb.ac.in 2nd Year
Akshay Mayinkar UH12006 uh12006@stu.ximb.ac.in 2nd Year

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


FLOW OF PRESENTATION GOING BANANAS WITH MAHABANA

Industry Primary BUSINESS


INNOVATION SUMMARY
Analysis Research PLAN

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


INDUSTRY ANALYSIS MACRO -TRENDS STAKEHOLDERS COMPETITORS OPPORTUNITY

INDIA- Overall and state wise Banana production data. Banana is perennial in major producing states. CAGR 14 %

Data source: National Horticulture Board

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


INDUSTRY ANALYSIS MACRO -TRENDS STAKEHOLDERS COMPETITORS OPPORTUNITY

Stakeholder Analysis: Mahindra Logistics


Government Customer
•Market is fragmented due to structural flaws in APMC •Institutional players are themselves into end-end solution
•Ripening by Carbide banned under Rule 44-AA of PoFA •Customers are price sensitive as banana is a table fruit in
(Prevention of Food Adulteration), 1955 India
•FDI to accelerate farm to retail purchase •Difficult to capture small vendors like “Lorriwala”

Society Suppliers
•Number of intermediaries are high •Varied type of farmer (big/small scale of operation)
•Wastage of 15-20% due to mishandling of banana •Very sensitive group to handle
•Pricing monopoly of traders leading to unfair trade •Restricted market access of suppliers due to remote locations
practices •Resistance to change to any new processes and methods

Regulatory Bodies Competitors


•Export formalities leading to players exiting due to •Institutional potential customers may be potential
cumbersome processes competitors
•Octroi Tax-Multiple valuation by different states leading to •Highly fragmented
illegal means •Intermediaries have an important and decisive role
•Unreasonable insurance terms of companies leading to •Other fruit logistics players providing end-end solutions
irrecoverable losses

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


INDUSTRY ANALYSIS MACRO -TRENDS STAKEHOLDERS COMPETITORS OPPORTUNITY

Large 3PL Providers: Multiple Sectors Fresh Produce 3PL Providers


Industry catered: Industry catered:
Heavy engineering, Fresh Fruit Produce
Auto, Pharma, FMCG, Logistics
Competitor Analysis:
Electronics, Textile,
Chemicals, Agriculture •Agriculture focus is
not prominent
Offerings: Offerings: among the big
Multimodal transport, Procurement, Storage, players. Smaller
Warehousing, Freight Commodity Funding, players have
forwarding, Warehousing, Freight capacity constraint.
Reengineering services, Forwarding,
Reverse logistics, Transportation
Inventory
management, Custom
clearance,
Testing/Inspection

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


INDUSTRY ANALYSIS MACRO -TRENDS STAKEHOLDERS COMPETITORS OPPORTUNITY

Key Exports Markets


1. United Arab Emirates
2. Saudi Arabia
3. Iran
4. Kuwait
5. Bahrain
*Based on total exports

Key Domestic Markets


1. Delhi
2. Mumbai
3. Kolkata
4. Nagpur
5. Jaipur
6. Patna
7. Jammu
8. Lucknow

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


FLOW OF PRESENTATION GOING BANANAS WITH MAHABANA

Industry Primary BUSINESS


INNOVATION SUMMARY
Analysis Research PLAN

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


PRIMARY RESEARCH LOCATIONS ODISHA ANDHRA PRADESH GUJARAT MAHARASHTRA

Gujarat New Delhi


Vadodara, Padra district Mahindra Logistics Office
Farmers and Traders
Cold Storage and ripening chambers
companies

Odisha
Bhubaneswar, Sambalpur
Banana Godowns, Wholesalers,
Transporters, National Horticulture Board
Office, Eastern Coastal Railway office

Maharashtra
Jalgaon, Raver, Bhusawal
Andhra Pradesh
Rajamundry, Ravulapalem
Farmers, Packers, Commission Agent,
Farmers, traders
Traders, Transporters

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


PRIMARY RESEARCH LOCATIONS ODISHA ANDHRA PRADESH GUJARAT MAHARASHTRA

Eastern part of Odisha gets Bananas from Andhra Pradesh, whereas


western part gets from Maharashtra.
Profession, Banana
Key issues
Place Name & Variety &
Address Source
Trader- Rasthalli, •Festival time truck shortages.
Dhanlaxmi Champa •Winter season Banana sale is low.
Fruit •Bad debts at retail.
Bhubaneswar- Truck with cushion for banana bunches
Company, Rajamundry, •Carbide treatment for ripening.
At Rajmahal (Andhra •Wastage: Banana stem and
Bhubaneswar Chowk Pradesh) packing material.

Dy. CCM (E) <Chief VP vans can be leased.


Mr. K.C. Commercial SLR space can be rented.
Sahoo manager>
India Railways
Trader- Cavendish •Quality varies and hence highly
Waris Inam dependent on trader relationship.
Sambalpur Fruiters Jalgaon •Entire business runs on credit and
At Pension (Maharashtra) this causes losses. Bhubaneswar- Carbide treatment for ripening.
Para

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


PRIMARY RESEARCH LOCATIONS ODISHA ANDHRA PRADESH GUJARAT MAHARASHTRA

Bhubaneswar- Truck with cushion for banana bunches Bhubaneswar- Waste post unloading truck Bhubaneswar- Over ripened bananas- waste

Bhubaneswar- Freshly unloaded banana bunches. Bhubaneswar- Bananas ripened during journey Bhubaneswar- Banana stem- waste

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


PRIMARY RESEARCH LOCATIONS ODISHA ANDHRA PRADESH GUJARAT MAHARASHTRA

Ravulapalem (East Godavari district, Andhra Pradesh) is the


highest producer of Bananas in Andhra Pradesh. Harvesting
season is throughout the year.
Profession, Banana
Key issues
Place Name & Variety &
Address Source
Ravulapalem Mr. •Wastage of around 25-30% before
Ravulapalem: Bananas being loaded onto a truck
Chatrapathi, harvesting
Farmer Chakkarakeli, •Fluctuation in the rates of the
Bontha bananas in the market.
Mr. Suri Babu •Virus effecting the growth of the
Farmer plants
•Heavy winds blowing lead to wide
spread damage
Ravulapalem Mr. Das NA •The rising cost of the fuel
Driver & •Bad infrastructure causing damage
Vehicle to the fruits.
Owner
Ravulapalem: Bananas being carried by a worker

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


PRIMARY RESEARCH LOCATIONS ODISHA ANDHRA PRADESH GUJARAT MAHARASHTRA

Ravulapalem: Farmers sending bananas on cycles Ravulapalem: Dry leaves used as Packing material Ravulapalem: Bunches which fell due to strong winds

Ra ulapale : Taki g tra sporter’s i ter ie Ravulapalem: Packing of bananas with dry leaves Ravulapalem: Disposing the wastes

Note: Please refer to Primary research photo album for more pictures and explanation.

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


PRIMARY RESEARCH LOCATIONS ODISHA ANDHRA PRADESH GUJARAT MAHARASHTRA

As per NHB advance estimates, 2012-13, Gujarat has the highest potential to
be the largest producer.
Exports from Gujarat: due to strategic location and varieties of banana
available
Profession,Name &
Address Key takeaways
Place
Banana Variety &
Source
Vadodara Mr Sandip Shah •Calcium Carbide, used 99% of the times for ripening:
and Padra Director, Mech Air Banned under Rule 44-AA of PoFA (Prevention of Food
Industries Adulteration), 1955
•Ethylene gas used for ripening: maintains sweetness and Vadodara- Mech air Industries
Brian Lobo, aroma, value addition
Proprietor, Amanico •Payback period for a 10 MT ripening chamber < 1 year
Refrigeration •Farmers get the least in the entire supply chain
Company •Use of special trolley in export oriented pack houses
Studied the art and supply
science behind •Needs improvement in post harvesting period: handling
ripening chambers, and transporting
costs and warehousing

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


PRIMARY RESEARCH LOCATIONS ODISHA ANDHRA PRADESH GUJARAT MAHARASHTRA

Maharastra’s Jalgaon District and allied areas are considered to be


advanced in terms of Banana cultivation and logistics. These set
benchmarks !!
Profession, Banana
Key issues
Place Name & Variety &
Address Source
Jalgaon Farmer Grand • Wastage of about 20-25% of entire crop before harvesting.
District Mr. Harshad Patil Naine • Extreme weather conditions and virus infections can severe Jalgaon Farmer- G9 seed.
Mr. Pravin Patil damage the crop.
(Bhadli Mr. Ravin • Price changes are on daily basis and abrupt.
Ramkrishna
Village) Mr. Sanjay Gokul • Organized companies selectively want good harvest.
Patil Farmer gets very low rates for rest.
Mr. Sanjay • Farmer has to pay for carrying banana bunches to truck.
Narayan
(Rs. 5-8/ bunch)

Raver Farmer Grand • Rate fluctuation is very high


Mr. Manas Naine • Bananas should reach Delhi Mundi mandatorily on 3rd day.
Kulkarni Otherwise crop may suffer. Rates are set according to that.
Mr. Kishore Sopan • Insurance with unreasonable terms and conditions. Jalgaon Lokmat- Oct 12
Patil
Mr. Vilas
Chowdhury
Note: Please refer to Primary research data file for detail farmer inputs and contacts.
INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY
PRIMARY RESEARCH LOCATIONS ODISHA ANDHRA PRADESH GUJARAT MAHARASHTRA

Jalgaon: Mahabanana Office Jalgaon farm visit- Bhadli Village Bhadli: Karpa Virus infection Ra er: Far ers’ passbook

Jalgao : Far ers’ I ter ie Bhadli: Mosquito infected Bhadli: Drip irrigation Raver: Daily price variation

Note: Please refer to Primary research photo album for more pictures and explanation.

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


FLOW OF PRESENTATION GOING BANANAS WITH MAHABANA

Industry Primary BUSINESS


INNOVATION SUMMARY
Analysis Research PLAN

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


INNOVATION IDENTIFYING THE BOTTLENECKS INNOVATING TO REMOVE BOTTLENECKS

FARMERS INTERMEDIARIES CONSUMER

Bottleneck 1 Bottleneck 2 Bottleneck 3


Lack of motivation Present logistics system based on Availability and
for Banana farmers convenience of intermediaries rather price guide market
than cost and quality effective rather than
measures. consumer needs.

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


INNOVATION IDENTIFYING THE BOTTLENECKS INNOVATIONS TO REMOVE BOTTLENECKS

Bottleneck 1 Lack of motivation for Banana farmers

Key findings: Farmers get penalized heavily due to market price fluctuation, natural calamities and
poor quality.
Farmers get incentivized marginally for good quality.
Innovation 1 Improvement 1
Reducing farmers’ cost- Mechanical Innovation 2
arrangement to bring banana Sharing benefits from logistics Providing farmers direct access to
bunches out of field can save farmer improvement with farmer – paying market: Through Mahindra ADMC
thousands of rupees on each harvest. farmer upto 10% above mandi rate. (Agriculture Development and
Marketing center) – ADMC shall
Keeping limited exposure to single provide facilities like packhouse,
farmer/ farmer group so that storage, ripening, transport etc. under
benefit can reach maximum people. one roof.
Improvement 2 Company shall promote employment in the villages
through financing equipment and machines for use of
wastes like banana stem.
INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY
INNOVATION IDENTIFYING THE BOTTLENECKS INNOVATIONS TO REMOVE BOTTLENECKS

Present logistics system is based on convenience of intermediaries rather


Bottleneck 2 than cost and quality effective measures.
Key findings: Being goods of perishable nature, truck owners want premium for on time delivery of
bananas.
Almost 10% of carrying capacity goes waste due to cushion for bunches.
Close to 15% weight of bunches is the stem waste which goes waste at the point of sale.

Innovation 1 Improvement 1
Using railways for transportation of Better post harvest
banana: Leasing VP vans. techniques: Using crates for
transporting banana from
For return logistics of crates, renting farm to end users.
SLR vans of Indian railways is
feasible. These crates shall be bar
coded to keep track of
This enhances the reach of supply quality and losses.
chain and helps decrease cost as well.

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


INNOVATION IDENTIFYING THE BOTTLENECKS INNOVATION TO REMOVE BOTTLENECKS

Bottleneck 3 Availability and price guide market rather than consumer needs.

Key findings: •Good looks sell- Over 80% of bananas are ripened with carbide, carcinogenic in nature.
•Variety is not available.

Improvement 1 Improvement 2
Integrated Logistics: Providing ripening Integrated Logistics: With the proposed
chambers at distribution center for healthy method, different varieties of bananas can
ripening of fruits using ethylene gas. be shipped even if there is no bulk
demand.
This shall make available carbide free
fruits for consumption.

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


FLOW OF PRESENTATION GOING BANANAS WITH MAHABANA

Industry Primary BUSINESS


INNOVATION SUMMARY
Analysis Research PLAN

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


BUSINESS PLAN IMPLEMENTATION IT STRATEGY HUMAN RESOURCES FINANCIAAL PLAN

Procurement center
Warehouse Packhouse
Purchasing center
Cooperative
Society/ Groups

Crates Cardboard box


Ripening
Storage
Center
Farmer
/Farmer groups Logistic control center

Setting up Mahindra Agriculture Mahindra Distribution


development and marketing center Export
Center
(ADMC) Organized Wholesalers
Trader Setting up Mahindra
Market Distribution Players / Trader
center (MDC)
Note: Functions in shaded area are integrated under ADMC.

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


BUSINESS PLAN IMPLEMENTATION IT STRATEGY HUMAN RESOURCES FINANCIAL PLAN

Procurement methods for ADMC:


Agriculture/Harvest
METHOD OF PROCUREMENT Quantity Quality Farmer Rise
control
Cooperative societies Medium- Large Mixed Medium Low- Medium
Commission agent/ Groups Large Premium/ Mixed Low Low
Directly from farmers Small Mixed Medium High
Farmer groups Small- Medium Mixed Medium High
Contract farming Small- Medium High High High
Farmer payment procedure: 10% over existing market rate. Innovation Mahindra Logistics shall use pulley
and lever system to bring banana
lobes upto the transport vehicle.
This gives farmer a cost saving of
Rs.5-8 per bunch during harvest.

Cost of each set of equipment (50


geared hoist and T shape mast)-
Rs. 150000
• Banana full bunches are weighed. Farmers are paid according to average weight of bunches.
• Hand are cut at the site. Sorting is done into class A, B, C (in decreasing order of quality). Bananas are
arranged in color coded crates and transported to warehouse/ or sent directly to railway station as per need.
INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY
BUSINESS PLAN IMPLEMENTATION IT STRATEGY HUMAN RESOURCES FINANCIAL PLAN

Transportation modes: The major change in the current process of banana logistics is
Selection determinants Railroad Motor the paradigm shift from road to railway for long distance
Cost 3 4 transport.
Transit time 3 2 The fruit is transported in returnable crates through railway.
Reliability 2 1
Capability 1 2 The key benefits of railway transport are:
Accessibility 2 1
Security 3 2 1. Extended reach.
(1- Best, 5- worst)
2. Lower cost and cost certainty.
Innovation

MAHINDRA MAHINDRA WHOLESALER/


FARM ADMC DISTRIBUTION ORGANIZED
CENTER RETAIL

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


BUSINESS PLAN IMPLEMENTATION IT STRATEGY HUMAN RESOURCES FINANCIAL PLAN

IT Strategy for the operations:


Inventory and Logistics Customer Service:
1. Use of barcodes for reusable crates Management - Freight Payments
to monitor the farm produce - Freight Consolidation - Auditing
quality and such data can be used - Freight Distribution - Order Management
to rate farmers. - Shipment Planning - Fulfillment
- Traffic Management - Help Desk
- Carrier Selection - Carrier Selection
2. GPS enabled trucks to minimize
- Order Entry/ Management - Rate Negotiation
idling and improve profitability.
PRIVATE
CLOUD
3. Use of mobile app to share the Warehousing: Transportation:
requirements with farmers. - Packaging - Scheduling.
-- Labeling - Fleet management.
4. Use of integrated warehouse - Warehousing
management systems to improve
inventory management.
Link with existing ERP
5. Use of private cloud to minimize systems and legacy systems
upfront hardware investment.

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


BUSINESS PLAN IMPLEMENTATION IT STRATEGY HUMAN RESOURCES FINANCIAL PLAN

Human Resource Interventions

Provide continuous Quality, compliance, Integrated end-end Vision


opportunities for growth innovation, cost solution, customer as To be India’s leading,
and knowledge effectiveness, co-owner and provide most preferred,
enhancement to employees supplier/trader/wholesaler all inclusive growth for integrated logistics
and business associates. relationships, sustainability all stakeholders service provider.

Association with Mahindra Pride School Goodwill amongst Training Needs


Livelihood training programs at Mahindra ADMC: the communities
transform the lives of youth from socially and Absorption of Interpersonal Training of executives to manage
economically disadvantaged sections trained youth in to Level the integrated end-end logistics
Specially designed training program in farming, basic the logistics chain
education (English, Aptitude and Computer skills) supply chain Managerial Training for ADMC lower and
Diversity and Level middle level managers in dealing
Association with Nanhi Kali Inclusivity with fresh produce sector
Quality education to girl children from economically Human Capital
disadvantaged families Advantage Operational/Te Training programs for packaging
Contribution to the economy and will reduce the social Market Share in chnical Level and sorting bananas for exports
evils in the society the region
Increased Operational/Te Specialized training for trolley
Idling System Incentives: Reward transport fleets and chnical Level operation, cutting banana fingers
profitability and
drivers depending upon the Idling time reduction and
growth
timely and efficient delivery of the bananas

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


BUSINESS PLAN IMPLEMENTATION IT STRATEGY HUMAN RESOURCES FINANCIAL PLAN

Investment in Ripening chamber: 25 Lacs Investment in Pack house: 624 lacs


Total investment in ADMC: 1343 lac
NPV: 3533 LACS
Income I II III IV V
Income from Transporation 3486.05 3815.22 4173.42 4562.77 4985.47
Income from Exports 2351.63 2821.96 3386.35 4063.62 4876.35
Income from sale of Ripened Bananas 6907.26 7559.47 8269.21 9040.68 9878.20
Total Income 12744.94 14196.65 15828.98 17667.07 19740.01
Expenses
Cost of Raw Material 4615.21 5089.49 5613.75 6193.50 6834.90
IT Expenses 254.90 283.93 316.58 353.34 394.80
Selling and General Charges 637.25 709.83 791.45 883.35 987.00

Salary for Transportation business


348.60 381.52 417.34 456.28 498.55
Operating expenses ripening chamber 2231.58 2442.29 2671.59 2920.83 3191.42
Operating expenses ADMC 501.31 601.57 721.88 866.26 1039.51
Transportation Expenditure 2466.64 2676.54 2904.47 3175.62 3472.71
Miscellaneous Expenses 637.25 709.83 791.45 883.35 987.00
Depreciation (SLA) 167.86 150.01 158.49 163.68 169.28
Interest 120.86 105.37 88.01 68.57 46.80
Balance loan payment 129.14 144.63 161.99 181.43 203.20
Total 12110.59 13295.01 14637.00 16146.21 17825.16

PBT 634.35 901.65 1191.98 1520.86 1914.85


TAX 190.31 270.49 357.59 456.26 574.46
PAT 444 631 834 1065 1340

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


FLOW OF PRESENTATION GOING BANANAS WITH MAHABANA

Industry Primary BUSINESS


INNOVATION SUMMARY
Analysis Research PLAN

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


SUMMARY BUSINESS SYNERGIES RISK MITIGATION

Co-
Transpor
Farmers operatives/ Processing Wholesaler Retailer Consumer
tation
Traders

Farm Procurement Warehouse Transportation Distribution Center

Mahindra Agri- Mahindra Farm Mahindra Logistics Tech Mahindra


Business: Equipment •Integrated Supply Chain •Efficient and relevant IT
•Crop Care •Tractor using farmer base Management development and support for
•Identification and •Leveraging the brand •Entire freight movement ADMC and transporters
registration of farmers Mahindra to capture the •Line Feed •Back end services optimizing
•Partnership with self- farmers •Value-added services entire value chain
help groups •Partnership with Samridhi
for education and services

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


SUMMARY BUSINESS SYNERGIES RISK MITIGATION

Touch Point Kind of Risk Description Risk Mitigation


Procurement Operational Farmer may not agree to sell his Extensively educate the farmer about the uses of this partnership; Need to
product have a communication strategy and partner with Samridhi and Self-Help
Groups
Procurement Environmental Incur losses due to natural Tie-ups with The Agriculture Insurance Company of India for registered
calamities farmers with Mahindra ADMC; Source produce from varied locations to
avoid single dependency
Procurement Financial We are not able to recover money Once the yield of banana crops increase, we can adjust the prices over the
from the people whom we have procured bananas
financed
Procurement Entry Traders, Farmers may be Before rolling out the business model, during the planning phase itself,
reluctant to register at Mahindra communication strategy needs to be developed keeping in mind the
ADMC due to the perception that potential risks. There may be resistance from traders and farmers to
they will be denied of what they Mahindra’s entry which may have to be pacified through goodwill
are getting now gestures.
Transport Operational Trucks may break-down in between Having centralized ADMC IT systems, we can keep a track of the movement
causing delay for distribution and such breakdowns. In case of a breakdown we may contact nearest
distribution center and sell the produce in nearby markets and arrange for
another consignment for original destination
Transport Operational In case of increase in the freight It is a government policy and will have marginal changes
charges of trains
Transport Operational Oil prices fluctuations (diesel) We can diversify the truck transportation to train transportation and combat
the same

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


SUMMARY BUSINESS SYNERGIES RISK MITIGATION

Touch Point Kind of Risk Description Risk Mitigation


The export and import
Need to consult legal department within the company to ensure smooth
requirements may not get fulfilled
Distribution Compliance export and import processes and constant focus on quality and processes so
due to extensive documentations
that these hurdles may not creep in.
and legal implications
In case of rupee appreciation, In this case if the demand also falls, we will have to divert a set of export
Exchange Rate
Distribution exports may get affected oriented produce to domestic markets by doing a cost-benefit analysis for
Risk
adversely both
Employees may not be expert in
Strategic: handling agricultural-produce Exclusive training programs for employees who are to be stationed at
Miscellaneous Employee/Work logistics and may not be ADMC in dealing with farmers, traders and in efficiently and effectively
er Risks comfortable dealing with traders managing the state of affairs in Agri-business
and farmers at micro levels
Entry of more logistics players or Innovation and creating a sustainable competitive advantage through key
Miscellaneous Strategic Risk
competition from existing players talent retention, farmer and trader retention
Changes in demand/supply, We will have to diversify in other fresh produce products like grapes and
Miscellaneous Market Risk
government regulations apples.
Change in government due in 2014 Will have to analyze different geographies and the impact of political
Miscellaneous Political
may be either support or hinder changes and take decision accordingly
Price fluctuations in different
Miscellaneous Financial Adhere to the mandi rates as displayed in the local newspaper
markets may affect the margins

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


THANK YOU.
APPENDIX 1 Reverse Logistics for reusable plastic crates

Institutional
Retailer

Mahindra Railway Ripening/Distri


Farm Station bution Center
ADMC

Wholesaler

Traders
Road
Transport

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


APPENDIX 2 Comparison between crates, cardboard boxes, conventional lobes

Plastic Crates (600 x 400 x 230 & 600 x 400 x 180 ) Cardboard Packing Lobes
Grower: Rental fee per use; Quick availability Two rows of 8 - 10 clusters are laid; covered with Most natural and cost-effective form of packaging
protective packing material; another two rows
Integrity of product is retained during storage and Perforations to ensure a proper flow of cooling air Keeps the fruit intact through out the supply chain
movement of goods around the bananas: Fresh fruits
Applicable to all types of fresh produce Vertical stream of air may pass through unhindered
Measurements Is the most traditional and fastest form of packaging
and therefore keeping in tact the fruit and involves little/no extra investments
Light weight, easy for manual handling, stackable May be easily checked for ripeness and also ideal Handling of banana lobes is difficult and requires
easy transportation
Exterior in mm 800 x 1200
for exports market lots of manual labor
Height in mm 160
Packaging is hygienic, easy to clean and sanitize expensive recurring cost; easily damaged by careless Space optimization cannot be achieved due to lots of
handling and stacking wastage
Cost of reverse logistics involved and need to explore Seriously weakened if exposed to moisture Cannot be used for exports and are not reliable for
innovative methods of reverse logistics long distance transportation

INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY


APPENDIX 3 Backward and forward integration of logistics business
Relationship Building with Greater control over the entire
farmers will help Mahindra value chain, quality and prices
enhance and sustain market Competitive advantage due to
share delivery of integrated logistics
Successful model in Banana solution
will help Mahindra scale up to L Future scalability becomes
other fruits in future O easier
Will integrate Mahindra Will decrease the number of
G
Logistics with its key suppliers intermediaries and thus cost
I
Backward i.e. farmers benefit Forward
Integration S Assured quality and timely Integration
Will ensure consistent supply
T distribution to the end
of bananas irrespective of
disruptions, if any I consumers
Assured Quality produce will C Collaboration with institutional
ensure compliance and demand S players and wholesalers will
Cost-effectivness realization in ensure sustainable demand
the entire value chain Due to the use of foldable
Will provide employment plastic crates, the entire
opportunities at remote areas packaging, handling,
and ultimately FARMER RI“E transporting and distribution
would improve
INDUSTRY ANALYSIS PRIMARY RESEARCH INNOVATION BUSINESS PLAN SUMMARY

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