Arohana Dairy Private Limited

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Arohana Dairy Private Limited

Vallam, Thanjavur, India
a
Organization type: 
for profit
Project Stage:
Growth
Budget: 
$1 million - $5 million
Project Summary
Elevator Pitch

Concise Summary: Help us pitch this solution! Provide an explanation within 3-4 short sentences.

Arohana Dairy Private Limited (Arohana), is a for-profit social enterprise set up with an aim to ensure that the Indian dairy farmer is able to run the dairy farm as a lucrative primary or secondary occupation without a debilitating dependency on labour.
Arohana’s vision is “Leading rural communities to a better tomorrow”. Arohana Dairy is working to create highly productive dairy clusters by providing conveniences to the dairy farmer enabling her to:

-augment her income

-expand herd size

-adopt to appropriate automation at the community level and

-de-mystify the technical and scientific aspects of dairy farming

Arohana commenced operations in January 2010, in Thanjavur district, Tamil Nadu, India and currently operates in 27 villages within a 25 km radius from its chilling unit in Vallam taluk, Thanjavur.

About Project

Problem: What problem is this project trying to address?

Farmers owning under 5 acres operate an economically unviable unit. Expert advise, small automation and dissemination of best practices are unavailable to them due to the small farm sizes. Aggregate village-level units gain scale, become viable making it possible to create an eco-system conducive to dairy farming. The benefits of a large, modern dairy farm are replicated for these farmers without them having to depend on labour, a serious challenge in rural India and increase overall wellbeing.

Solution: What is the proposed solution? Please be specific!

Small & margin farmers constitute 90% of India's dairy farming, pouring small amounts of milk and spread over a large area. Yields are abysmally low due to several hurdles faced. Arohana changes all these in one stroke. We collect large amounts of milk, from many farmers through village level milk collection centers(MCCs). Yields are trebled, milk quality improved and efficiency brought into MCCs. In an economy with rising prices, farmers are equipped to cut costs, not corners.
Impact: How does it Work

Example: Walk us through a specific example(s) of how this solution makes a difference; include its primary activities.

The key elements of Arohana's execution strategy are: *A unique farmer focussed bottoms up solution design working at consolidating the production end of the supply chain rather than on processing efficiencies *Working in tight geographic clusters and including those villages that have an expected potential of producing 2000 litres of milk per day *Identifying, and capacity building for, local entrepreneurs and village level leaders who would be grouped together as an Activity Based Group (‘ABG’) in each village and empowered to drive the business at the village level *The ABG would manage milk procurement and testing, fodder & feed supplies and credit for bank loans *Investing in Milk Collection Centres (MCC), which are managed by this ABG under the supervision and guidance of the company and serve as a single point node to service the cattle farming related needs of that village/community. The MCCs would be characterized by permanent physical structures, high level of automation and mechanisation and best in class transparent measurement and procurement systems *Aggregating and providing these services for a large number of dairy farmers in the village to ensure that each dairy farmer can concentrate on her core activity of animal rearing and thereby achieve optimal scale *Assisting farmers in procurement of quality cattle *Arranging for insurance services to be provided by a reputed insurance provider *Creation of a robust technology backbone, custom designed to drive and support the business
Sustainability

Marketplace: Who else is addressing the problem outlined here? How does the proposed project differ from these approaches?

India share in the global milk production is in the range of 20% per capita consumption in India is however below average. There is an intricate market structure that supports milk supply to consumers which includes both co-operative structures as well as several private diaries. All of these however are consumer and demand focused supply chains. Arohana's farmer focused supply chain is the aspect that makes it unique in the Marketplace

Comments

Indrani Sharma's picture

Thank you for your participation in AFI Growth Prize Competition. We have a key question for you: What is your strategy to spread this innovation through scaling-up and replication? How can this be ensured and accelerated through a financing/business model?

Please post your response as comment here before Dec 15, 2012 to be considered for final evaluation.

Devi Prasad Rao's picture

Dear Indrani

Thanks for accepting our participation in the AFI Growth Prize Competition.

Our strategy to spread this innovation is ensure that each cluster has the following characteristics:

Each cluster is being designed in modules, in a self-contained manner and representing the unit for scaling & replication. Thus scale is built in the solution design itself.
Use of appropriate technology that allows the use of Business Intelligence and Analytics
Standardized, water-tight, easy-to-implement processes
Ownership of business processes at local level
As dairying is agnostic to geography, at a mature stage we are open to replications with customizations.

Trust this clarifies.

Regards . . . Devi Prasad Rao