Janani's IT enabled AgriService Venture (JAS)

Janani's IT enabled AgriService Venture (JAS)

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Created: October 31, 2011
Last Update: October 31, 2011

Stage of Innovation
1. Idea
2. Start-up
3. Growth
4. Established
5. Scaling

Janani’s vision is to make Agriculture Profitable for small farmers by enabling him to improve quality–increase productivity–reduce cost of cultivation

Janani will

-Integrate solutions to various problems of farmers under one roof – near the farm gate

-Provide State-of-the-art AgriServices & Products to farmers by exploiting latest in Agri Sciences and Information & Communication Technologies

-Bridge gap between organized sector and farmer by operating through network of Village Kiosks and Mandal Aggregation Centers

-Create a Value Chain from Farm to Fork through Agri Science Knowledge Powerhouse and Seamless Supply Chain operating under robust ICT network

Operations will be through strategic alliances with

-Agri Business companies
-Rural Finance/Insurance Organizations
-Marketing enterprises

Agri Experts will continuously monitor crops and provide personalized advisories on crop management and allied activities

Revenue through Service charges, Commissions & trading margins

Problem

The Small Farmers are A. Not cultivating using relevant scientific practices B. Unable to access and implement the latest in Agri Sciences / Agri Technology C. Running around various places for difference services/products D. Quality Inputs were not available at village input shops E. Not getting finances from organized sector F. Resorting to distress sale at local Mandies G. Not using Post Harvest facilities H. Losing heavily due to vagaries of weather and price/demand fluctuations

Solution

1. The existing extension services mostly are not continuous and generalistic in nature – whereas – Janani provides farm specific advises, continuously, at the farm gate 2. The farmer need to go to nearest town to get inputs – Generally gets only spurious and non-branded products – inconsistent prices – Janani’s Village Kiosks provide Branded Inputs at fair prices at arm’s length 3. Farmer has less access to organized finance – They are in the clutches of Local money Lenders – Janani provides the farmers with an opportunity to get finances (Agri, Micro) through Banks, MFIs, without the farmer going around and wasting his time 4. Farmer is forced to resort to distress selling of the produces at the local traders / Mandies. Janani provides them with various market linkage options – Export, Food Processing, Retail Chains, Commodity Exchanges, … 5. Lack of Post harvest Management Infrastructure near the farms is the cause for loss of produces and market fluctuations. Janani’s services enable the farmer to have scientific storage facilities and marketing the output at the right time and at right price. 6. Farmers do not get timely information on farming related activities. Janani’s information system through IBM’s spoken web will provide timely and appropriate information to farmers on weather, prices, government schemes…

Example

Janani AgriServe Business Model has two streams of revenue 1. Providing Services (eSagu Agro Advisories, Agri Finance&Insurance, Agro Information, Quality Assurance) where revenue is earned through service charges - service providers will run their operations (both software&Transactions)in Janani's ICT Platform 2. Trading of Products (Input and output) - revenue through trading margins - Entire trading operations of Janani would be on the ICT Platform Most importantly data generated under Agro Advisory Services would be mined through the Decision Support Systems of ICT Platform for forecasting business demands and decide appropriate buying/selling channels and price/quantity determination processes To deploy and deliver the above mentioned Products and Services, Janani has strategic alliance partnerships with some of the top notch public and private sector organizations. Some of the Critical partnerships are A) Stakeholder in eSagu Project of International Institute for Information Technology, Hyderabad and MediaLab Asia, Min. of IT, Govt of India B) IBM India has consented to be our Information and Communication Technology Partner, through their Rural Outreach Division C) Janani has extended loans to farmers through ICICI Bank and Dhanax and looking to have partnerships with HDFC D) Janani already have established Commercial Relationship with Input organizations like Syngenta, Nagarjuna, Coromandal, DuPont.. E) Janani is in advanced stage of discussions with IFFCO to partner their Agro Park, being set up in 3000 Acres (Rs.3000 crore investment) in AP F) Discussions are also in place with MCX (Multi Commodity Exchange) for linking farmers to the Commodity Trading The Operational Model is as below: 1. Farmers are registered at the Village Level Kiosks operated by locals agriprenaurs 2. Village Level Kiosks’ requirements are aggregated at Mandal/Taluk Level “Aggregation Centers operated by Agri / Business Graduates 3. Janani to provide all technologies/products/services to the farmers through this operational network from District Level – Janani enters into MOUs/Trade Agreements with the relevant organizations 4.. Entire business processes are on an ICT Platform – SRAP (Smart Rural Aggregator Platform) being developed by IBM India in close association with Janani on a revenue sharing basis 5. Agro Information services are a mobile (voice)based ICT Platform – IBM’s Spoken Web – being localized with suitable modifications to meet Janani Farmers’ local needs 6. Quality Assurance through the EVision project to C-DAC under development where Janani is a partner 7. Front end (village & Mandal Franchisees) will be from the Kiosks network of APOnline or I-Serve who provide e-governance and e-commerce services 8. Entire transactions/operations will be ICT based – process created by Janani and under development by IBM (exclusive) 9. The Data generated from the Agro Advisory Services will be constantly mined through the “Decision Support System (DSS) model of Janani” (under development in-house) which facilitate forecast of demand & supply. This reduces the inventory in the pipeline resulting in reduced working capital at all levels and improves the profitability. Competitive advantages of Janani are: 1. Only Project where 2. services/products are delivered at farm gate 3. ICT Platform integrate all stakeholders/transactions 4. Proactive Agri Advisories delivered 5. Comprehensive products/services delivered under one roof at village level 6. Allied farming/rural activities can be added without huge investment 7. Focus is on individual farm 8.Multiple options given to farmers for same product or service 9. Low investment at village level Kiosk

Marketplace

Completion for Janani is mainly from the un-organized sector in the Villages, viz. The Local Pesticide Dealer, Trader and Money Lender. There are similar models from public and private sector which provides services through Kiosks. But none of them provide all the integrated and comprehensive services under one roof, which is Janani’s advantage. The ICT Network with IBM Technology partnership is an unique one and none have it. Janani would facilitate multiple brands/products/services from all major public and private sector organizations to be offered to the farmers and thus encourage competition. This would be advantage to the farmers as they would give their choice, at the fair price and better services

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