Download - Yes Bank Approaches to Agribusiness
Presentation on
Approaches to Financing Agribusiness in India
Conference of in-Charges of Priority Sector Advances of
Commercial Banks
Gopi Krishna Swarangi Vice President
Food & Agribusiness Strategic Advisory & Research
26-07-2008
Knowledge Banking in Food and Agribusiness sector
YES BANK is focused on being “The Bank for Businesses of the Future”
In the Indian context – Food and Agri is an inescapable value driver for the economy and hence for YES BANK
Agriculture is the backbone of the Indian EconomyContributes ~ 25% to the GDPEmploys ~ 60% of the work forceContributes ~ 15% of exports
However the value added in Indian Agriculture is still low as compared to international standards
Transforming AGRICULTURE to AGRIBUSINESS will lead to a quantum jump in value added from a "supply-driven” low-volume situation to a
“demand-driven” high-value business
Agri & Food Inputs
SeedsFertilizersAgro-chemicalsAgri-biotechIrrigationFarm MachineryPoultry Feed & EquipmentDairy Feed & EquipAqua & Fishery Feed & EquipmentFood PackagingFood Ingredients
Prodn. and Warehousing
Food Corporation of IndiaState Warehousing CorporationCentral Warehousing CorporationPvt. WarehousesCold StoragesFloricultureGreenhouses
Logistics & Distrbn.
PortsReefer TransportCaterers
Trading
Edible OilGrainSpicesFruits & VegMeat/ aquaCommodity Exchanges
Processing
Primary ProcessGrain MillingEdible OilDairyFruits & VegSugarHigh Value ProcessingConfectioneryBakeryBeveragesDairyMeat & PoultryMarine & Fishery
Food Retail & Food Service
Super MarketsHyper MarketsFast Food & Beverage Chains
Our unique “Knowledge–banking” approach to doing business in the F&A sector…
Numerous sub-sectors across the Agri-value-chain……right from the “Farm gate” to “Food plate”…
A dedicated Food and Agribusiness Strategic Advisory and Research team consisting of sector experts has been domiciled within the Development and Knowledge Banking
Division of the bank
Knowledge Banking helps us offer customized products to stakeholders across the value chain
Contract Seed Growers
Dealer
Seed Company
Distributor
Farmer
Contractual agreement
Credit sales
Preferred distributors
Lending against offtake contract
SEEDS
Lending against stop sales agreement
Term lending/ WC
Short term lending against liquid collateral
Crop loans
Credit
Credit/ forward contract
Farmer
Wholesaler
Village level CA
Mandi/ Warehouse
Miller
Warehouse Receipt
Warehouse Receipt
Spot market price
EDIBLE OIL
Vendor bill discounting
WR finance
Crop loan
Need for a Holistic Development Approach – along the Agri Value Chain
Consumer Orientation
Farmer linkages
Action steps
Financial Services
Market Linkage
Research & Extension
Regulatory
Refo
rms
Infra
structu
re D
evelopm
ent
Credit
Delivera
nce
Innovativ
e Busin
ess Modelin
g
Commodity Trading
Agri Infrastructure & Logistics
Mar
ket
Dev
elop
men
tP
rice
com
peti
tive
ness
Str
eam
line
d su
pply
cha
in
Production Handling
& Mrktg. Processing Wholesaler Retailer
Traceability
Geographic appellation
AEZ
Select Initiatives in the Food and Agribusiness space
Knowledge Reports
FASAR – Key Government Assignments
National Institute of Agricultural Marketing
Optimal Operational & Ownership Model of
Modern Terminal Markets
National Institute of Agricultural Marketing
Optimal Operational & Ownership Model of
Modern Terminal Markets
Ministry of Agriculture
National Consultants for Developing Framework for Selection of Private Enterprises for Setting up of Modern Terminal
Markets
Ministry of Agriculture
National Consultants for Developing Framework for Selection of Private Enterprises for Setting up of Modern Terminal
Markets
Govt. of Rajasthan and NIAM
Feasibility Study for Setting up of Modern
Terminal Market in Jaipur
Govt. of Rajasthan and NIAM
Feasibility Study for Setting up of Modern
Terminal Market in Jaipur
Govt. of Orissa and NIAM
Preparation of Detailed Project Reports for
Modern Terminal Markets in Cuttack and
Berhampur
Govt. of Orissa and NIAM
Preparation of Detailed Project Reports for
Modern Terminal Markets in Cuttack and
Berhampur
Govt. of UT of ChandigarhConsultants for
Selection of Private Enterprises for Setting
up Modern Terminal Market in Chandigarh
Govt. of UT of ChandigarhConsultants for
Selection of Private Enterprises for Setting
up Modern Terminal Market in Chandigarh
Govt. of Punjab
Consultants for Selection of Private
Enterprises for Setting up Modern Terminal
Market in Punjab
Govt. of Punjab
Consultants for Selection of Private
Enterprises for Setting up Modern Terminal
Market in Punjab
Govt. of MaharashtraConsultants for
Selection of Private Enterprises for Setting
up Modern Terminal Market in Mumbai
Govt. of MaharashtraConsultants for
Selection of Private Enterprises for Setting
up Modern Terminal Market in Mumbai
Govt. of Orissa and NIAM
Consultants for Selection of Private
Enterprises for Setting up Modern Terminal Market in Sambalpur
Govt. of Orissa and NIAM
Consultants for Selection of Private
Enterprises for Setting up Modern Terminal Market in Sambalpur
FASAR – Key Government Assignments
Govt. of Andhra Pradesh
Assessment of Infrastructure of Existing
APMCs and Development of Strategy for their
Modernization
Govt. of Andhra Pradesh
Assessment of Infrastructure of Existing
APMCs and Development of Strategy for their
Modernization
Govt. of Rajasthan and NIAM
Assessment of Infrastructure of Existing
APMCs and Development of Strategy for their
Modernization
Govt. of Rajasthan and NIAM
Assessment of Infrastructure of Existing
APMCs and Development of Strategy for their
Modernization
Govt. of West Bengal
Preparation of “Agricultural Marketing – Vision 2011” Document
Govt. of West Bengal
Preparation of “Agricultural Marketing – Vision 2011” Document
Govt. of Gujarat
Advisory for Development of Modern
Fruits & Vegetables Market in Surat, Gujarat
Govt. of Gujarat
Advisory for Development of Modern
Fruits & Vegetables Market in Surat, Gujarat
IFFCO-Greenport JVC
Implementation of Integrated Agro Food
Park in Nellore, Andhra Pradesh
IFFCO-Greenport JVC
Implementation of Integrated Agro Food
Park in Nellore, Andhra Pradesh
Govt. of GujaratMoU for Development of
Integrated Agro Food Park on PPP basis
Govt. of GujaratMoU for Development of
Integrated Agro Food Park on PPP basis
National Horticulture Board
Evaluation of Role, Structure and
Continuation of National Horticulture Board
during XI Five Year Plan
National Horticulture Board
Evaluation of Role, Structure and
Continuation of National Horticulture Board
during XI Five Year Plan
HAFEDPreparation of Vision and Comprehensive
Business Plan
HAFEDPreparation of Vision and Comprehensive
Business Plan
FASAR – Key Government Assignments
APEDAStreamlining of Existing
Procedures and Documentation for
Agricultural Produce Exports
APEDAStreamlining of Existing
Procedures and Documentation for
Agricultural Produce Exports
APEDARestructuring of APEDA
in order to Confirm to the Proposed APEDA Amendment Bill 2007
APEDARestructuring of APEDA
in order to Confirm to the Proposed APEDA Amendment Bill 2007
APEDAStudy on Dwell Time of
Agricultural Produce and Meat Products at Delhi’s
IGI Airport and ICD, Dadri
APEDAStudy on Dwell Time of
Agricultural Produce and Meat Products at Delhi’s
IGI Airport and ICD, Dadri
APEDAAdvisors on Fast Track Development of AEZs through PPP in India
APEDAAdvisors on Fast Track Development of AEZs through PPP in India
Government of Uttaranchal
Floriculture Project on PPP Basis
Government of Uttaranchal
Floriculture Project on PPP Basis
Ministry of Agriculture (World
Bank Project)Role of Centre and State Systems in Agriculture
under NAIP
Ministry of Agriculture (World
Bank Project)Role of Centre and State Systems in Agriculture
under NAIP
UNIDOMarket Study for
Shortening of Supply Chain and Enhancement of Value for the Farmers
in Vidharbha, Maharasthra
UNIDOMarket Study for
Shortening of Supply Chain and Enhancement of Value for the Farmers
in Vidharbha, Maharasthra
Cane & Bamboo Technology Centre
Market Assessment, Channel Study and
Mapping of Consumer Preference for Select
Bamboo Products in NE
Cane & Bamboo Technology Centre
Market Assessment, Channel Study and
Mapping of Consumer Preference for Select
Bamboo Products in NE
FASAR – Key Corporate Assignments
North India based Large Corporate
GroupEntry Strategy for Fresh Produce Business and Securing Backward and
Forward Linkages
North India based Large Corporate
GroupEntry Strategy for Fresh Produce Business and Securing Backward and
Forward Linkages
Leading Indian Corporate
Diversification into Organic Farming of
Fruits & Vegetables and Entry into Bio fuels
Leading Indian Corporate
Diversification into Organic Farming of
Fruits & Vegetables and Entry into Bio fuels
Leading Indian Conglomerate
Roping in a Strategic Partner for Distribution
of Fruits & Vegetables in European Markets
Leading Indian Conglomerate
Roping in a Strategic Partner for Distribution
of Fruits & Vegetables in European Markets
Leading Indian Corporate
Entry into Rural Retailing with Special
Attention to Agri Inputs
Leading Indian Corporate
Entry into Rural Retailing with Special
Attention to Agri Inputs
Leading Food Ingredients Player
Formulating India Strategy
Leading Food Ingredients Player
Formulating India Strategy
Leading Shipping Conglomerate
Business Potential for Gamma Irradiation Application in Food Industry in India
Leading Shipping Conglomerate
Business Potential for Gamma Irradiation Application in Food Industry in India
Leading Indian Seed Company
Raising Growth Capital for Fresh Produce and
Retail Business
Leading Indian Seed Company
Raising Growth Capital for Fresh Produce and
Retail Business
South India based Project Developer
Implementation of Integrated Agro Food
Parks in Andhra Pradesh, Tamilnadu, Karnataka, Kerala, Pondicherry and
Maharashtra
South India based Project Developer
Implementation of Integrated Agro Food
Parks in Andhra Pradesh, Tamilnadu, Karnataka, Kerala, Pondicherry and
Maharashtra
Setting up the first “state of the art” Integrated Agro- Food Park in the Country in Andhra Pradesh
Unique first of its kind integration of various agribusiness value chain componentsSpatial clustering of different agro-production chainsSpatial combination of agro-processing and non-agro functions (building, industrial estate or region) Scale increase in production further enables industrial processingApplication of principles of industrial ecology, i.e. mutual use of waste and by-productsClustering approach to attract leading foreign retail chains to anchor and plan their supply chain at and through the Agro Food ParksTownship model approach to attract Indian MNCs and foreign food processing companiesTremendous scope for Rural transformation and rural employment generation
AGRO FOOD
PARK
RTC
RTC
RTC
RTC
RTC
RTC
Consolidation Centre
Consumers
Integrated Agro Food Park - Concept
Clustering and Networking provides context for sustainable innovations
Intelligent Agrologistic Networks combining Consolidation Centres, Agroparks and RTCs
METROPOLE
METR
OP
OLE
Consolidation Centre
Agroproduction- and
processing Park
RuralTransformati
on Centre
AFP
Modern Farm ClustersGreen Houses
Livestock farmsMushroom Nursery
FP ZonesUtilities & Services
CommercialComplex
R&DIncubation
QCL
Commissaries &Packaging
CommonInfrastructure
AgribusinessMgt. Trg. Inst
Convention CenterIT/ Library
Training Center
Agro tourismWellness &
Nutrition
Terminal MarketsLogistics
Cold StoresRipening Chambers
Warehousing
RuralTransformation
Centers
RuralTransformation
Centers
RuralTransformation
Centers
RuralTransformation
Centers
ProductionProcessing
R&D
Trade
Soc
ial
Concept (contd.)
Rural Rural TransformationTransformation
CentersCentersAt Mandal Level
Popln: 5000 - 10000
Agri Clinic
Collection Center
MentoringTraining
Farm CreditMicro Finance
Primary HealthCenter
CommercialRural Mart
Office Space
Smart CardGreen Port
Realty
Food &Entertainment
Village
VillageVillage
Village
Village
Village
Concept (contd.)
Market-Oriented Food Production Chains
Farmers
Collection Points
Collection Centres
Primary processing
Centres
DistributionCentre
Domestic markets
Export markets
Retail
Collection - Value Adding -
Distribution Centres:
Increase employability
Add quality and value
Link farmers to retail
Open new markets
Farmers
Collection Points
Collection Centres
Primary Processing
Centres
DistributionCentre
Domestic markets
Export markets
Retail
Primary processing centre:Cooling, sorting, grading, packaging and storingCollection from max. 50 - 100 km
Backward chain optimisation from farm to fork (incl. seeds and tissues); farmers become preferred suppliersReduce shrinkage by expanding cool chainIncrease quality (+price)Extend potential market
Market-Oriented Food Production Chains (contd.)
Farmers
Collection Points
Collection Centres
Value Adding Centres
DistributionCentre
Domestic markets
Export markets
Retail
Add Agro-production to Processing and Trade
Land-independent agriculture in Agro Food Parks adds opportunities, mainly in new markets
Case Study - Integrated Dairy Farms – Linked to AFP
AFP
{
Margin Money
Payment of Milk (Market Price)
Payment Of Cattle Feed (Market Price)
Veterinary Services, Training, Technical Knowledge, Market
Information
Information Flow
Bank
Payment from the market
Cattle Loan Repayment
Cattle Loan
Payment (Milk+Fodder-
Loan-Feed)
Financial Flow
Distribution Centre
Domestic Markets
Export Markets
}
Retail
Consumers
Modern Livestock Farm
Farmers
Cattle +
FodderMilk
Feed
Dairy Product
Product Flow
Strategic Partnerships
Strategic alliance with Alterra, a leading
international knowledge institution
and part of Wageningen
University Research Center, Netherlands
For implementation of Integrated Agro Food Parks
Strategic alliance with Alterra, a leading
international knowledge institution
and part of Wageningen
University Research Center, Netherlands
For implementation of Integrated Agro Food Parks
MoU with National Institute of Agricultural
Marketing (Ministry of Agriculture, GoI)
For undertaking Strategic
Advisory and Consultancy
MoU with National Institute of Agricultural
Marketing (Ministry of Agriculture, GoI)
For undertaking Strategic
Advisory and Consultancy
MoU with NABARD Consultancy Services
(NABCONS) For jointly carrying out
Strategic Advisory assignments in the areas of Food & Agribusiness,
Agri Infrastructure, etc.
MoU with NABARD Consultancy Services
(NABCONS) For jointly carrying out
Strategic Advisory assignments in the areas of Food & Agribusiness,
Agri Infrastructure, etc.
Strategic Alliance with Agriculture
Insurance Corporation of India
(AIC) For co-developing
insurance products suitable for the farming
community across India
Strategic Alliance with Agriculture
Insurance Corporation of India
(AIC) For co-developing
insurance products suitable for the farming
community across India
Dedicated state level initiative to enable “project development”
Public Private Finance Initiative (PPFI)Work with state governments to accelerate implementation of pre-approved projects
YES BANK will incur initial developmental expenses
We propose to work with external consultants for developing DPR, finding private sector partners, developing the capital structure and achieving financial closure
Assists Governments to analyse and develop a number of projects without incurring costs on initial project development
YES BANK will recover costs from project success
Bid Process Assistance is built within the frame-work
Sectors PPFI will coverAgri-Infrastructure Projects
Other important rural and urban infrastructure projects
Water Supply and Micro Irrigation
Conceptualization to Implementation
Thanks for your attention !