Mr. A.

Girish Reddy

Contract Mining

Construction

Infrastructure
Mr. A. Mahesh Reddy

Chairman and Managing Director

Mr. A. Girish Reddy

Joint Managing Director

Overview

THE COMPANY

Established as a Partnership Firm in 1992 and Corporatized in 2001 Over 18 years of experience in Contract Mining and Industrial Infrastructure ISO 9001:2000 Certification Rashtriya Nirman Ratan Award in 2007 International Excellence Award in 2008

Grew from INR 250 million to INR 7400 million at a CAGR of 132.23% over last 5 years. Orders worth INR 60 million under execution

Overview
Mine development, excavation, drilling, blasting, loading and transportation
Contract Mining

BUSINESS VERTICALS

Construction

Housing, Industrial Construction, Site Grading and other related activities

Infrastructure

Roads, Irrigation, Pipeline, Transmission Line, Sewerage & Other works

Now, the group started a NEW COMPANY

Headed by T. KRISHNA SUDHAM REDDY

The warehouses will be located in rural areas close to the farmers with the main objective of scientific storage by the farmers themselves at an affordable cost since foodgrain storage has been declared as infrastructure.

This idea has been contemplated due to certain ground realities affecting the storage of food grains (which is the wealth SAMPADHA of Our Nation).

1. The economic backwardness of small farmers to retain their farm produce till it can be sold for a better price in the market at a later date is the key issue. For this reason, they are compelled to sell away the produce even at below nominal prices and have become puppets in the hands of middle men.

2. Lack of adequate storage facilities in rural areas also leads to distress sale by farmers. 3. The storage capacity of godowns run by Food Corporation of India (FCI), Central Warehousing Corporation (CWC) and State Warehousing Corporations (SWCs) is very little and does not match the overall food production of the country.

The projected storage gap estimates (CAGR) of food grains, cotton, oilseed and spices which is increasing every year Year 2007-08 2008-09 2009-10 2010-11 2011-12 Million matric tons 98.48 102.61 104.34 106.00 107.84

Presently, the produce from the farmers is procured by either government or private agencies and stored mostly in godowns of Food Corporation of India or Central Warehousing Corporation or State warehousing Corporations and to some extent in private storehouses.

4. Even the food grains that are stored in these sub-standard godowns are subject to huge transit and storage losses which could otherwise be utilized for distribution to the downtrodden poor.
The union agriculture minister s stated on August 4, 2009 that 0.62 per cent of the country s stock of wheat and rice was wasted in transit or due to poor storage facilities in the first two months of this financial year alone. Even setting aside the fact that often the government figures play down the losses and that the losses may be higher in reality, this would translate to a loss of 2.2 lakh metric tons of wheat and rice in the months of only April and May this year (2009). (Source: India Current Affairs, 23-09-2009)

5. Further, the information about availability of food grains at each godown is not easily available or inaccessible, rendering the timely movement of the food grains from available bulk storage to short-fall areas slow and difficult.

In view of the foregoing, SAMPADHA set its objectives to: 1. Prevent distress sale by the farmers. 2. Erect warehouses on scientific lines and minimize losses during storage and handling. 3. Create market facility at the warehouse itself.

4. Setting up of Agri. Clinics . 5. Provide Service Centres at the warehouse locations. 6. Organize various group activities among the farmers at the warehouses to provide latest information and skills with healthy competitive interaction under the supervision of experts.

7. Educate and facilitate the farmers on easy finance and quick repayment. 8. Empower farm-women in skills of rural entrepreneurship 9. Establish Village Knowledge Centres in villages of the service area to act as knowledge hubs.

1. Preventing distress sale by the farmers.

Small and marginal farmers who normally depend for investment on next crop from the sale of previous crop, usually sell the produce immediately after harvest. Because they neither have enough reserve money nor a durable and reliable credit facility Because they neither have mortgage or credit facility on the produce.

As a confidence building measure, Sampadha wishes to serve as a source of trust by arranging credit by bringing the farmer and public financing institutions closer and also act as an intermediary.

2. Erecting warehouses on scientific lines

The storage of food grains should meet the minimum standards so that they can stay edible for longer periods. The store house should be built in such-a-way that the stored product can be inspected closely and if necessary, they can be treated or handled to maintain the standards.

The existing warehouses are far from these standards and incurring huge storage losses to a tune of about 15 lakh MT annually. Maintenance of proper moisture level in the produce is the most crucial factor for long time storage.

Upper limit of grain moisture content for safe storage. Commodity ommodity Paddy, rice (raw) Rice (Parboiled) Wheat Kabuligrun, Bengal gram Sorghum, maize, barley, ragi, bajra, pulse, turmeric, wheat atta maida besan Moisture content (% wet basis) 14 15 12 12.5

Coriander, chillies Groundnut pods Mustard seed

10 6-7 5-6

Increase in moisture under storage invites fungi and insects to not only cause damage but also promote accumulation of toxic chemicals like aflatoxins, which are very dangerous when consumed.

The second important factor is rodent infestation in the godowns. Rodents damage the grains in many ways. a. They consume and damage human foods in the field and in stores. In addition they spoil it in stores by urine and droppings reducing the sales value.

2. Through their gnawing and burrowing habit they destroy many materials including food and structures (floors, buildings, bridges, etc.). By gnawing through electrical cables they can cause fires. 3. They are responsible for transmitting diseases dangerous to man.

Taking care of all the problems in warehousing of food grains, the new structures will be erected with modern technology to minimize these deleterious effects.

3. Create market facility at warehouse itself.

We aim at providing reasonable price for the produce stored in our godowns by interfacing the farmers and buyers at the storehouse itself. It can be achieved by educating the farmers on market trends and convincing the traders on the quality and advantages of scientific storage in SAMPADHA .

4. Setting up of Agri. Clinics .

The warehouses also serve as Agri. Clinics with facilities like quick soil testing, diagnosing the problems during crop season and suggesting management practices to minimize the resultant losses and harvesting a quality produce.

5. Providing Service Centers at the warehouse locations.

The service centers provided at the warehouses serve as a source of necessary quality inputs like seed, seedlings, fertilizers and manures, pesticides and others as required by the farmers.

6. Organize various group activities among the farmers.

The SAMPADHA warehouses will be the centre stages for group activities among farmers by way of group discussions, rythu sadassus, seminars, exhibitions to create an ambient atmosphere for better crop management and healthy competition under supervision of relevant experts.

The warehouses also provide timely scientific advise by experts in various fields of agriculture through lectures, group discussions, seminars, and training programmes on latest developments in various production, protection, harvest and post-harvest technologies.

7. Educate and facilitate the farmers on easy finance and quick repayment.

The company wishes to engage agricultural economists and banks to educate the farmers on various modes of getting credit with least liability and repayment scheduling without much hardship to the farmers.

8. Empower farm-women in the process of rural entrepreneurship

Educating the farm women with necessary skills on strengthening their lives through organized entrepreneurships in various fields through self help groups and mahila mandals.

9. Establishing Village Knowledge Centres in villages of the service area

The rural youth will be educated in information technology required for their villages through counseling and providing required training to organize Village Knowledge Centers . They will be organized into groups each one taking care of at least one activity.

The company initially envisages to start 106 SAMPADHA warehouses in Andhra Pradesh covering the three regions of the state.

These warehouses will be located at the centre of about 60 surrounding villages (Service area of that warehouse).

The farmers in each village will be given membership of the concerned warehouse for two-way interaction. The membership enables them to use the services and facilities provided at the warehouse like seeds, fertilizers, pesticides etc. and Agri. clinics. They can participate other activities also.

The company wishes to hire or appoint consultants in various fields of crop production, protection, harvest and postharvest technologies and also in financing and marketing to periodically interact with the farmers and clarify their doubts, diagnose their problems and help in getting finance and better price for their produce.

The warehouse provides the farmers a storage facility inside for their produce at nominal charges till they get better price or wish to sell. The farmer who stores the produce will be provided with a certificate or declaration or affidavit indicating the details of the produce so that it can serve to get loans from financial institutions on mortgage.

The experts at Agri. Clinics will examine the problems of various crops in the field by studying the specimens or even visiting the fields and suggest immediate management tactics to minimize the losses.

Group activities like lectures, seminars, rythu sadassus, exhibitions etc. will be organized at the warehouse and the farmers will be encouraged to participate by exhibiting their best produce which will be rewarded. This helps in building confidence among the farmers.

The Village Knowledge Centers become the activity hubs in educating, training and facilitating centers of the village under the supervision of the Warehouse. The inhabitants of the whole village will be encouraged to take part in the development of the village

The farmers will be imparted with skills to produce quality seed under Seed Village with technical supervision of experts from SAMPADHA .