ECOFARMS

Tripti PGP04097
Athira PGP04106
Harsh PGP04112
Achla PGP04120
Parvathy PGP04124

COMPANY BACKGROUND
ECO FARMS is a Community Supported Organic
Agriculture Business entity promoting and supporting
organic farming .
LOCATION:Yavatmal and neighbouring districts of
Wardha, Amravati and Jalgaon in Maharashtra
VISION: To nurture a greener earth where we eat healthy,
live healthy and where those who till the soil can sustain a
comfortable lifestyle
MISSION: To remain a dominant player in environmentalfriendly practices for fair and sustainable living through
organic farming.
SOCIAL IMPACT:Improving the lives and incomes of
farmers in Maharashtra

Concept Note

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Industry
Indian economy is quite reliant on agriculture (14% of GDP, almost
60% of population)
Demand for organic foods increasing purchasing power and health
consciousness among consumers
Europe and North America are the major global markets for organic
food products.
According to a YES Bank report in 2012, Indian organic food market
was estimated at Rs 1,000 crore ($170 million) - of which Rs700 crore
came from exports - and is growing at 30 to 40 per cent annually.
In comparison, the US organic foods market is worth $26 billion, the
European, $10 billion
The country has 4.43 million hectare under organic cultivation with a
total organic certified production of 171,100 tonne 33 rd in the world
India Organic Food Market Forecast & Opportunities, 2019 - the
organic food market revenues in India are expected to grow at a
CAGR of around 25% during 2014-19

Industry
Organic food market in India is highly unorganized and
fragmented, which offers immense growth opportunities for
domestic as well as international players. On the other hand, the
organic dairy products segment is expected to witness a decline
in the country due to stringent NPOP (National Program for
Organic Production) quality standards.
Competitive advantage of India inherited tradition of organic
farming in several states, low production costs, availability of
diverse climates to grow a large number of crops round the year
Organic certifications, land conversion from conventional farms to
organic farmlands, farmer training and organic food product
storage involve high cost - organic food products costing 20-30%
more than conventional food products major challenge
Domestic demand for organic food products is primarily driven by
high net worth individuals in metro cities
Currently, organic processed food segment is the leading growth
contributor, followed by organic cereals, and pulses & grains

Other Players
i. EcoTokri an e-commerce site, that sells only organic prodcuts - from organic
tea and flour to organic soaps and accessories and solar nuru lights, but organic
cosmetics contribute 60 to 70 per cent to its overall sales
ii. Soul Tree - primarily into exports, but from last year has also starting selling in
the domestic market, through sites such as EcoTokri and Natural Mantra as well
as brickand-mortar niche organic stores
iii. Organic India - one of the biggest in the business, has seen its revenue rise
from Rs 25 crore in 2008 to Rs 175 crore in 2013. Best known for its Tulsi Tea, it
makes a range of organic products and has grown so confident of the market's
potential that it is setting up its own standalone stores. They have opened two
stores in Lucknow and aim to have 20 stores across the country by the end of
2015. It has also launched new products such as organic ghee (using milk from
cows fed only organic grass and fodder) and organic chyawanprash.
iv. Conscious Food, perhaps the oldest in the business, launched almost 25 years
ago, has grown at a compound annual growth rate of nearly 35 per cent in the
last four years to reach revenues of Rs120 crore. It sells organic sweeteners honey, raw sugar, jaggery - along with cereals and pulses. They never had an
active sales organisation, which is now being put in place to promote the
benefits of going organic. They have also begun Farmer's Market, an agency
that helps people buy chemical-free vegetables and fruit sold directly by
farmers every Sunday at Mumbai's Maharashtra Nature Park.

v. Organic Tattva which started in 2012, imports juices, breakfast

cereal, pastas, sauces and dry fruit, all made organically, from
different countries. For Indian staples, they set up a manufacturing
unit where package grocery items are cleaned and graded.
vi. Mother India Farms - used to export the organic fruit pulp,
dehydrated fruit and vegetables and a variety of spices it produced
to France, Germany and The Netherlands. But sensing the market
gap in organic fruit juices in India, they launched a mango-flavoured
organic fruit beverage in 2012, under the brand name Organa. They
now sell organic guava juice, organic apple juice and organic mango
pulp in India
vii.Navdanya, an NGO engaged in organic farming - has set up an
organic foods caf at Dilli Haat, Delhi and will be starting another
in Delhi in 2015
viii.
PE/VC in the segment - Organic food manufacturer 24 Letter
Mantra, for instance, got $15 million from Peepul Capital in 2011,
while rival Suminter India Organics got $3 million from Nexus India
Capital in 2008. In March this year, leading retailer Fabindia acquired
a 40 per cent stake in Organic India for Rs15 crore.

Strategic Direction
As of now 75% of revenues come from farming of
cotton- diversification to other crops required.
Fruits and vegetables (food crops in general) have
a health connotation compared to cash crops.
Also, we plan to have multiple revenue streams to
diversify our risk. One idea is to provide organic
farming consulting to large scale plantations,
farmers etc.
We can also conduct soil tests, water table tests
and suggest suitable crops in the consulting
model.

BUSINESS MODEL
A for- profit social enterprise
Create a network of farmers across villages and promote organic farming
of crops in their farms educating them about the benefits of organic
farming for their soil and their profits.
Purchase the crops from the network at slightly above market rates and
sell them under its own brand name to other companies wholesalers and
retail outlets of big chains
Transport produce from the farm to the market, eliminating logistics costs
and the need to find buyers.
Act as the only intermediary between the farmer and the market, unlike
the prevalent system, which has agents, mandis and the agriculture
produce market committee (APMC)
Evangelises the use of farmers inputs and seeds and sell at concessional
rates seeds grown at the headquarters farm

Marketing & Sales

More focus on selling on e-commerce
platforms
Special Earth and Environment Day
marketing programmes- to spread
awareness regarding the planet and
achieving spotlight to the company.
VCs network or clientele can also be
utilised to increase the distribution of
the products

Financial Plan

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Funding Requirement
Working Capital
Crop insurance
Higher labour costs
Hedging
Capital Investment
Storage & Transport Facilities
Processing Units
The company already has a processing unit, a 40,000
sq ft godown, an oil mill and a flour-grinding unit.

Management
As the company has a lot of scope to
improve in systems and processes,
the VC firm will play an advisory role
Until the VC is in picture, there will
be one Board member representing
VC
VC can oversee the revamping of
operations of the firm
Full Ratchet Rights

Exit Strategies
Merger
Payback: With long term payouts
Sale to a PE firm

Distress
Sell all assets to another
firm/individuals
VC gets highest priority in debt
servicing after debt holders

Thank You