Training Programme for Agri and Allied officials of Southern states of India

1. Approaches and Strategies for Start-up in
Agriculture and Allied Sectors
Er. A.Poshadri
Scientist-Food Technology
Krishi Vigyan Kendra
Prof. Jayashankar Telangana State Agriculture University
Email: poshadri_fst@yahoo.co.in
Cell No: +919492828965

2. A startup or start-up is a company or project initiated by
an entrepreneur to seek, effectively develop, and validate
a scalable business model
 >1,090 agritech startups in India (Inc42 DataLabs)
 Funding in agritech startups in India grew from
$46.1 Mn 2017 to $66.6 Mn in 2018.
 by 2020 the agritech sector will be at the center
stage of innovation and will lead India's journey
towards overall transformation.

3. New areas in the agritech sector
 Market linkage,
 Food Processing and export
 Value chain Management
 Digital agriculture
 Better access to inputs
 Farming as a service (FaaS).
 Stakeholder empowerment

4.  The Indian food processing industry accounts for 32 per cent of the
country’s total food market, one of the largest industries in India
 Food Processing sector is ranked fifth in terms of production, consumption,
export and expected growth
 India’s food processing industry market value USD482 billion
 The online food delivery industry grew at 150 per cent year-on-year
 India's organic food market is expected to increase by three times by 2020#.
 By 2024, food processing sector is expected to employ 9 million people in
India

5. Value addition: The maximum realization of
the price of the product through processing,
packaging and marketing.
-improved post-harvest handling and processing is
essential to ensure value addition
-reduction in wastage and good quality products
reach the markets
-increased productivity is an essential component of
a vibrant agricultural sector

6. • Farmers–get better returns, higher yield,
and lower the risks drastically,
• Consumers-have access to a greater
variety, better prices and new products,
• Economy-gets benefitted with new
business opportunities for the
entrepreneurs and the work force gets
employment
Food processing benefits all the sections of the society. It helps the:

7. Classification of Indian food and agro
processing industry

10. Indian AgriTech Startups

14. Firm Roots Pvt Ltd
Established in Feb, 2016

15. Millennova Pvt Ltd
Established in 2018

16. Possible areas of for establishing of Startups
• Agricultural Commodity Value chains
• Instant Breakfast mixes
• Multi grain/millets foods/weaning mixes
• Fruits and Vegetables/Cut/processed foods
• Spices and Seasonings applications
• Bakery Products:
-- Biscuits/ Cookies/cakes/Bread and Rolls
• Confectionery:
• Beverages/Alcoholic beverages
• Premium Health foods

17. Fortification of Besan with Soy Flour
• Blends very well with besan
with no beany flavor
• Besan can be substituted up to
20% with defatted soy flour
• Extensive research has been
done on soy fortified
traditional products

18. Advantages
• Cost effective
– Soy flour is much cheaper when
compared to besan.
• Improved protein content
– DSF has more than double protein
content than besan
• Less frying cost
– Soy absorbs less oil during frying
• Increased product yield
– Soy retains more moisture thus
increases the product yield

19. Blend of Milk, Wheat, Spices and Herbs
• Provide health benefits
beyond nutrition
• Phytochemicals of herbs:
–Antioxidants
• Neutralize free radicals
• Reduce heart disease,
cancer risk

20. Spices and Condiments Applications
• Straight spice powders (eg. Chilli powder, Turmeric powder,
Coriander powder, Pepper powder, Cumin Powder, etc.,)
• Culinary Powders (eg. Samabr Powder, Rasam Powder etc)
• Masala blends (eg. Garama Masala, Chicken Masala, Meat
masala etc)
• Seasonings and Tastemakers (eg. Snacks seasonings (Masala
munch, Green chilli masala, sour cream onion, mint etc.,
and Pasta and noodles tastemakers etc.,)
• Soup mixes blends ( Soup powders)

21. Strength  Higher food Production
Rising per capita income coupled with increasing awareness among
consumers
Rapid urbanization is driving consumerism in Tier-II & Tier-III cities
Growing penetration of food and beverages manufacturing companies in
rural areas
Tailor made flavors and region specific tastes
Weakness 1. Lack of state of Art Processing facilities
2. Limited shelf life for Milk, Meat and horticulture produce
3. Fresh produce preferred over processed foods
Opportunity  Rising business and product innovation
 Untapped rural markets
 Low-cost price strategy is adopted so as to make the product affordable to
the consumers
 Rising farm fresh produce and health foods
 Better product packaging and preservation
 India to be the youngest nation by 2025
 Doubling of farm income
•Threats •Product taste variations
•Competition from multinational companies
•Safety of Processed foods and adulteration
•Increasing life style diseases in India
SWOT Analysis

22. Gaps noticed
No close substitutes of products such as milk, fresh fruits
and vegetables are available in the market
 Reality V/S claims against nutritional value by processed
foods/Organic foods
Low switching cost makes consumers switch from one
supplier to another
Low penetration in rural area and high prices for low
volume
High cost of production and Poor export subsidies

24. Consumer Desires
• Good and Healthy Foods
• Available all year round
• Sufficient Supply
• Conveniently packaged
• Sold in (super) all types of markets (including e-retail platforms)
• Long shelf life and exotic taste and flavours
• Always Fresh
• Appealing taste & Appearance
• Quality/Autentically sourced Processed Foods
• High in available nutrients

25. Market Challenges
• Globalisation
• New distribution strategies
• New Processing Technologies
• New Materials/Additives
• New Risks
• Climate Change
• Energy Efficiency
• Water Supply
• Procurement of quality raw
materials
• Greed- Fraud

26. Marketing strategy/Plan including product sale
 Promote as Healthy convenient foods through the local retail
shops by test marketing with complimentary products such as
pickles, chutney and culinary powders etc.
 Distribution of the products through local grocery shops and
explore the convinces use of products
 Direct selling of the products through distribution in local retail
out lets of nearby villages and towns
 Target corporate and public sector canteens, college, school and
hostel canteens, railways and bus station outlets, tourism related
catering facilities to promote the health benefits of germinated
food products

27. Out of home (OOH):
• Target parlours and food courts in malls, multiplexes etc.
• Explore the option of dispensing the value added cereal
based drinks/foods through the vending machines in OOH
locations.
• DWOS &TTT- Diversey Way Of Selling & Train The Trainer
program)

28. • Creation of Business leads through Relationship marketing
• Diversity marketing- NOG.tastes, flavours, needs etc.
• New Business Avenues: Food Parks/Spices Parks/SEZ
• Digital Marketing
• Contract farming: Seed to Plate value Chain
• e-retail business-key adds (Call –to-Action Marketing (CTA))
• Word of Mouth-Marketing
• Transactional Marketing: Coupons, discounts, Buyone get
One
• Seasonal marketing
• Viral Marketing

29. 1. Mahua Processing- FPO
 The Mahua tree and its products have been a way of life with the Gond, Kolam and
Pardhan aboriginal tribes for centuries in the district.
 Its multiple uses, provision of food security and raising supplemental income during
the harsh summer months.
 KVK, Adilabad given technical inputs for Mahua processing, storage life and
nutritional information for Mahua based products to the Bheem bai Adivasi
Mahila Sakara Sangam, Utnoor.
 Established Multipurpose flour mill for Processing of Mahua- millet based foods.

30. Year of Establishment: 2019
Number of Members: 35 (active members : 21)
Quantity Processed during May to August = 600kg
Raw materials cost (including packaging cost): 48000/-
Labour charges: Rs. 18000
SKU size 500g and 1 kg
Total Expenditure: Rs. 66000
MRP for SKU: Rs. 400 per kg
Total Revenue: Rs. 2, 40,000
Net Profit: Rs. 1,74,000
B:C ratio: 3.63: 1
Members earnings per day: Rs.400/-
Profit sharing:
25% depositing in the name of FPO
15% Bonus to all the members and
rest of the amount utilized for
operational cost

32. Value addition of millets- Benefits
S.No Name and
Operator
Village Mandal Number of
Tribal
Families
October Novembar
Quantity
in Kg
Processed
Amount
earned
(Rs.)
Quantity in
Kg
Processed
Amount
earned
(Rs.)
1 Purka lachhu, Markaguda Indravelly 70 850 4250
850 4250
2 Iyurao Saleguda Indravelly 60 650 3250 680 3400
3 Pendur Madhukar Shaikguda Thalamadugu 50 630 3150
400 2000
4 Mesram Rekha
Rajgad,
G.P.Wadgaon
Bheempoor 140 950 4750
1050 5250
5 Gedam Ramji Bhagawanpoor Bheempoor 50 680 3400
580 2900
6 Madavi Jangubai Markaguda Bheempoor 70 810 4050
720 3600
7 Jugnak Vishnu Badiguda Sirikonda 60 750 3750 750 3750
8 Athram Ashok Ambugaon Thamsi 110 1080 5400 1200 6000
9 Mesram Laxman Leemguda Thamsi 120 1380 6900
1300 6500
10 Prabhu Pataguda Indravelly 70 860 4300
800 4000
11
Aadivasi Aaharam-
Women FPO’s
TSIIC, Utnoor, Utnoor 35 500 2500 600 3000

34. ICAR-ATARI-Hyderabad : Quinquennial Review 2011-12 to 2018-19
Value addition of Tomato (storage
practices and Preservation)
Impact
 Under Zero energy cooling chamber (ZECC)
tomatoes can be stored up to 12-15 days without
losing its quality
 Value addition to Tomato (Tomato Pickle
production) from December to March is
recommended to avoid losses
 B:C ratio for Tomato pickle production:2.52:1

35. ICAR-ATARI-Hyderabad : Quinquennial Review 2011-12 to 2018-19
Dhal Milling

37. Vegetable Soybean for Regular consumption
Soybean Tomato Curry Soybean Cutlet
Soybean Fried Curry

38. Conclusion
• India’s large market size with growing incomes and
changing life styles also creates incredible market
opportunities for food producers, food processors,
machinery makers, food technologists and service
providers in this sector.
• Poor agricultural performance can lead to inflation,
farmer distress and unrest and larger political and social
disaffection—all of which can hold back the economy.”

39. Thank You