BASIX Krishi Samruddhi Ltd(BASIX Krishi)

Overview

• 2010 onwards: Creation of BASIX Krishi Samruddhi Limited to provide AGLEDS to a whole gamut of farmers

• 2006 to 2009: Creation of Ag/BDS as a Strategic Business Unit (SBU) within BASIX, Served 0.70 million farmers

• 2004 to 2005:Adoption of livelihood triad strategy. 39 projects piloted under Ag/BDS in 8 states (AP, Maharashtra, Madhya Pradesh, Bihar, Jharkhand, Orissa, Tamil Nadu and Karnataka)

• 2001 to 2003: Action research work through sub-sector study and interventions in Cotton, Dairy, Groundnut, Soya, Vegetables etc…

EVOLUTION of BASIX Krishi

Action research

Ag/BDS

Scaling upAg/BDS

BASIX Krishi

Products and Services

Crop/Farm Management Services:

Soil testing Integrated Nutrient

Management Integrated Pest

Management Training on Crop

Management Field Surveillance Vermi-compost, bed

Installation Market Linkage- input &

output,

Crop / Farm Management Services

Preventive vaccination and De-worming

Health camps - Regular Animal Health Checkup, Pregnancy diagnosis

Artificial Inseminations Feed & Fodder Management,

Azolla Demonstrations Training for good Practices,Market Linkages- Input&

Output.

Dairy

Artificial Inseminations Feed & Fodder

Management, Azolla Demonstrations

Training for good Practices,

Market Linkages- Input& Output.

Dairy

Training on Back-yard poultry ManagementChicks delivery including starter feed for brooding periodTraining on low cost housing Training on feed preparationVaccination

Back-yard Poultry

Regular Animal Health checkupVaccinationDe-worming Training for good practices and stall feeding

Sheep & Goat

Products Service Fee (Rs) Service Period

Crop single (one season) 600 6 Months

Crop double (two seasons) 1,000 12 Months

Crop-Special(High value crops) 2,000 12 Months

Livestock- Single 600 12 Months

Livestock-Double 1,000 12 Months

Livestock – Special (5- Hybrid animals) 2,000 12 Months

Farm Management Services 5,000 +(variable on case to case) 12 Months

Products Features

Diverse Revenue Streams

• Fee from Customers, direct contracts by BASIX Krishi • Fee from Institutions, Implementing the projects of State

Government, Central Government and other Institutions • Credit Facilitation Fees, customer referrals to financial

institutions for credit assistance

• Revenue from Input Sales, customer referrals for Input supply from distributing agencies

• Revenue from Output Marketing, aggregation of produce and connecting to the main stream market

• Income from Insurance Sale, extending weather insurance, crop insurance, livestock insurance and life insurance

• Subsidy for low viability branches, for extending the AGLEDS

services in remote areas

Village meetings

Door to Door Campaigning

Multi channel Publicity

Lead farmersMass campaigning

Demonstrations

Participation in Krishi Melas

Sales and Marketing

Taking Agri Services to Depth and Scale

Vision of a one of its kind integrated agricultural extension services company

Covering a wide gamut of needs of farmers and allied segments

A field oriented, hands-on approach Powered by professionals who are equipped and experienced

Bringing a real life demonstration of products and services

Knowledge & Training Center

Through the BASIX Krishi Model Farm

Demonstration Site Knowledge & Training CenterLinking Customers to Input Suppliers & Government

BASIX Krishi Model Farm….

For BASIX Krishi: Resource, research and learning centre, strengthening customer interaction

For suppliers of related

products and services:

demonstration to customers

Intermediaries, Government:

To serve as a knowledge and training

centre

For customers: knowledge and training centre , demonstration

of services, display of products

Geographical Spread

Existing Andhra pradesh Karnataka Maharastra

Planned Assam Arunachal

Pradesh Bihar Gujarat Meghalaya Manipur Mizoram Jharkhand Goa Chhattisgarh West Bengal Rajasthan Tripura Punjab Sikkim Nagaland Madhya

Pradesh.

Andhra pradesh

Maharastra

Karnataka

Assam

Arunachalapradesh

Meghalaya

Manipur

Gujarat

Bihar

Madhya pradesh

sikkim

Mizoram

Nagaland

Punjab

Tiripura

Goa

West BengalChhatisgarh

Rajasthan

Jharkhand

Parameters for CategorizationPopulation densitySocio political systemContribution from Agriculture/ Livestock to GDPArea under cultivation where it is irrigated or non-irrigatedTypes of crops grown and productivityAnimals/ livestock‘s populationDemand for services – (Identification of Small & marginal farmer, larger farmers)Availability of resourcesGovernment Initiatives/ competitiveSpecial projects by governmentDeveloping / funding agenciesInfrastructure/ telecom connectivity – roads, electricity, telecom connectivityFinancial linkage to potential customer

Particulars Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16

Branches 9 46 106 181 306 456Customer Service Contracts

8,870 119,855 616,535 1,755,705 3,755,230 6,991,775

Outstanding Customers 8,870 98,640 389,682 870,107 1,507,191 2,421,410

LSPs 58 616 1,453 2,649 4,321 6,635Total HR(LSP+ staffs)

105 902 2,275 4,208 6,943 10,688

Income (in Rs 000’s) 3,544 63,139 437,589 1,099,908 2,041,791 3,365,047

Expenses (in Rs 000’s) 7,534 130,032 384,631 792,094 1,376,442 2,131,412PAT (in Rs 000’s) (3,990) (66,893) 35,481 206,236 445,784 826,536

Business Highlights

Thank you

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BASIX Mission:

To promote a large number of sustainable livelihoods, including for the rural poor and women, through the provision of financial services and technical assistance in an integrated manner.

BASIX strives to yield a competitive rate of return to its investors so as to be able to access mainstream capital and human resources on a continuous basis.

BASIX Vision:Equity for Equity – to use Capital : Natural, Human, Social, Physical

and Financial for bringing equality of opportunity and social justice in society

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2 million+ livelihoods

20,00 villages 16 states

Institutional Development Services

Agricultural,Livestock and

Enterprise Development

Services

Financial Inclusion Services

Livelihood Triad Strategy

Livelihood Triad Services

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FINANCIAL INCLUSION SERVICES (FINS)

AGRICULTURAL, LIVESTOCK AND ENTERPRISE DEVELOPMENT SERVICES (AGLEDS)

INSTITUIONAL DEVELOPMENT SERVICES (IDS)

Credit: Farm, Non Farm and General purpose activities

Productivity enhancement: Increase in yields or reduction in costs.

Seeding group dynamics and subsequently assisting to the individuals to become institutions

Insurance for lives and livelihoods – health, crop, livestock, micro-enterprise assets

Risk mitigation : Delivering timely preventive care.

Formation of groups, federations and societies.

Savings: KBS & Banking Correspondent model

Local value addition: Farm gate value addition for better remuneration.

Assistance in designing and implementing business processes. (MIS, IT and Accounts)

Money transfer: Migrant workers and Micro-pensions

Alternate Market linkages - Input supply, output sales

Building collaborations to deliver a wide range of services

Warehouse receipts Diversification: Supporting to diversify activities from farm to allied and non-farm activity

Sector and Policy work – analysis and advocacy for changes/reforms.

What…Action Research

Work with various sub-sectors and vectors which affects livelihoods Sub sectors : Sub-sector is defined as a vertical grouping of enterprises involved in the production and marketing of one well-defined product or several closely related products i. e. from basic raw material of one commodity to consumer point

Identify the Sub Sector

Undertake AR / Study

Identify & Address the Bottlenecks with effective

Revenue Model

Scaling up Phase

• Stages:

• Conceptualization - Undertaking Sub-Sector Studies - Select the intervention points to address the identified bottlenecks.

• Pilot Phase - Establish collaborations - Undertake the Action Research - Develop successful interventions on revenue model• Scaling up - Scale up the intervention - Undertake impact assessment - Improve the design.

How…Action Research

Products and ServicesCrop Development Services• Cotton, Soya bean, Paddy, SRI, Mushroom• Kitchen Gardening, Other major crops•Farm management services to Horticulture crops and medium /large dairy farms

NFS• Tailoring•Skills

IDS • Producer Groups, (PG)•Farmer Clubs•JLGs( Formation and Revival)Allied Development Services

• Dairy• Sheep rearing and Goatery• Back Yard Poultry

Up scaling Ag/BDS

• Implementation Process– Cluster approach– Gap Analysis– Calendar of Services – Fixed service delivery dates– Village Meetings– Demonstrations– Farmer field schools– Health camps– Exposure visits

• Registered over 538,662 customers in the FY 09-10.

• Serviced over 460,070 customers

AgBDS Growth in 5 years

1824

4

3386

0

104

2676

1

5903

6

1770

3

6029

6

1341

03

6454

9

1131

19

1868

00

2387

43

1899

77

4364

02

3776

74

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

500000

Crop Dairy NFS

2006-07

2007-08

2008-09

2009-10

2010-11

Services Strengthening

• Implemented Cluster approach for effective services delivery.• Introduced SMS based services. • Developed Product brochures and service delivery cards in vernacular languages

for seven AgBIDS products• Exclusive trainings to LSPs on technical Knowledge• Weather based Agro Advisory services• Recruited Resource Persons for conducting training on tailoring.• Conducted Customer Satisfaction Survey which resulted in 85% customer

satisfaction.• Business expansion through direct customers

– Cross selling of AgBIDS products

Krishi Branch Structure

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Branch Head

FX / FS - 1 FX / FS - 2 FX / FS - 3 FX / FS - 4

LSP - 1

LSP - 2

LSP - 5

LSP - 3

LSP - 4

FX / FS - 5

LSP - 1 LSP - 1 LSP - 1 LSP - 1

LSP - 2 LSP - 2 LSP - 2 LSP - 2

LSP - 3LSP - 3LSP - 3LSP - 3

LSP - 4LSP - 4LSP - 4LSP - 4

LSP - 5 LSP - 5 LSP - 5 LSP - 5

Transaction Assistant

Business Over view

• Customer base

• FY 2010-11 - 8870

• April’11 to July’11 – 6230

• Fees collected as on 31st July Rs.46,84,000

• Total HR - 59 on role + 113 LSPs on contractual basis

• Business support convergence plan with BSFL till Oct. 2011.

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Business Overview cont..

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FY 2010-11 Qtr 1 FY 2010-11 Qtr 2 FY 2010-11 Qtr 3 FY 2010-11 Qtr 4 FY 2011-2012 Qtr 1

Series1 1023 1948 2373 3180 3949

250

750

1250

1750

2250

2750

3250

3750

Number of customers

No.

of c

usto

mer

ts

Quarter wise growth of Branches

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Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1FY 2010-11 FY 2011-2012

0

5

10

15

20

25

30

6 67

9

25

Branches

Series1

Business Channels

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Small & Marginal Farmers:• Customers are formed into Producer Groups or Common Interest Groups for delivering services efficiently & in a cost effective manner

Institutional Collaborations:• Associations with NABARD, Government Departments, Banks to execute farmer-centric projects• Executing CSR initiatives of private organizations

Farm Management Services:• High End Progressive Farmers engaged in cultivation of Horticulture crops and Livestock enterprises• Door-step customized services to meet individual requirements

COLLABORATIONS

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Solidaridad

Projects with NABARD• Promoting System of Rice Intensification:

– Mahabubnagar, Nizamabad, Raichur with 804 farmers – Farmers realized incremental yield of 5-7 q/acre (28-35 bags otherwise

was 25-30 bags) i.e average of 20-30% increase in the yields• Promoting Joint Liability Groups

– Formed 238 JLGs (132 –Mahabubnagar, 6-Gulbarga, 100-Raichur), facilitated credit linkages to 82 JLGs (23-Mahabubnagar, 6-Gulbarga, 53-Raichur) .

• Red-gram Foundation Seed Program :– Implemented in Mahabubnagar with 23 farmers, resulted in an

incremental yield of 1-2 q/acre over the normal average of 2-2.5 q/acre.• New Interventions in Paddy:

– Mahabubnagar with 25 farmers, resulted in an incremental yield of 5-9 q/acre over an average yield of 18-22 q/acre with traditional methods.

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Government of Karnataka

• Suvarna Bhoomi Yojana: Govt. of Karnataka : Extending support to 10 Lakh dry

land small and marginal farmers through the financial assistance of Rs.10,000/- to each

beneficiary in two installments

– Krishi Project area: Five districts of Karnataka namely Raichur, Gulbarga,

Yadgir, Bagalkot, Belgaum

• Scheme for promoting the use of Vermicompost: Govt is providing

subsidy for vermicompost bed installation where BASIX Krishi is

linking the farmers to the scheme

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Government of Karnataka contd..

• Hyderabad Karnataka Area Development Board (HKADB)- Gulbarga

– To work towards enhancing the livelihoods of dairy farmers in Gulbarga

district through a convergence approach

– Opportunity to work in the Diary sector with Karnataka Milk Federation-

KMF and Animal Husbandry Department.

• MYRADA, Gulbarga:

• BASIX Krishi is working in collaboration with MYRADA in Gulbarga district for

extending Back Poultry programme through Self Help Groups(SHG)

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SolidaridadPre Better cotton Initiative

• BASIX Krishi is undertaking the project in association with Solidaridad a

Netherland NGO under pre BCI project to work with 3,000 cotton farmers from

Mahabubnagar district of Andhra Pradesh, Gulbarga District of Karnataka and

Khandwa District of Madhya Pradesh for a period of three years

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Small Farmers Agri business Consortium• BASIX Krishi has been allotted to work in the following fifteen states:

– West Bengal, Bihar, Jharkhand, Chhattisgarh, Madhya Pradesh, Rajasthan, Maharashtra, Sikkim and seven North East States.

• In these states the above work has to be undertaken with 38,000 vegetable farmers and 4000 pulses farmers for a period of two years.

• SFAC a society promoted by Dept. Of Agriculture, Govt. of India, has been nominated by Ministry of Agriculture to act as a nodal agency to coordinate with various state governments, civil society partners, financial institutions, resource persons and other stakeholders to help in the conduct of baseline studies, promote Farmer producer organizations across the country and link producer groups to marketing opportunities.

• To form farmers collectives, especially small producers, at various levels across several states, to foster technology penetration, improve productivity, enable improved access to inputs services and increase farmer incomes thereby thereby strengthening sustainable agriculture based livelihoods

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BENEFITS TO CUSTOMERS

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Service Element Expected Benefits

Crop Livestock

Productivity Enhancement

Soil testing facilitates farmers to use optimum quantities of inputs.

Vermicompost can be used as a locally produced low cost organic manure.

Use of high quality seeds can enhance yields by upto 20% & also reduce the risk of germination loss.

Azolla can be used as a low cost high nutrient feed supplement.

Regular De-worming can reduce the cost of excess feeding up to 40%

AI services help in breed upgradation and consequently higher animal productivity

Risk Mitigation Seed Treatment reduces the risk of seed / soil borne diseases.

IPM practices reduces the occurrence of pests thus reducing the cost of chemical sprays.

Preventive vaccination for FMD/HS BQ will save animal from fatal diseases thereby safeguarding the investment (Rs. 15000-30000/- per animal)

Alternate Market Linkages (Input & Output)

Collective purchase of seeds and fertilizers can be done at competitive prices due to economies of scale.

Farmers can realize better prices for the milk from institutional buyers.

Thank youMr. Amarnath Sanga

E mail- amarnath@basixindia.com

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