1. RURAL MARKETING
CAPITAL INPUTS - AGRICULTURE

2. The Company - KBL
• Year of incorporation : 1946
• Manufacturer of the wide range of Diesel Engines, Diesel
Generating Sets and Engine Bearings and Engine Valves
• Industries it caters to - Agricultural Machinery, Construction &
Material Handling Machinery, Marine applications and equipment
used by Armed Forces (Military).
• Sales Income, year ending March 31, 2007 - Rs. 1,883 Cr.
• No. of employees : 2,858

3. Range of water pumps
About 10 lakh units of agricultural products are produced in a year
40-50% of this consists of Borewell units
Market potential therefore, is huge

4. The Product
• Small irrigation water pumps
• K4 - ‘Borewell Submersible Pumps’
• Range from 2hp to 30hp – highest selling ones lie within 5-15hp
• Diameter of 100mm, 150mm, 300mm, 250mm
• Thickness ranging from 4inches to 8inches
• Can be used for a depth of 500-600ft underground
• Price – INR 15000 – 25000/-
Applications:-
• Sprinkler and drip irrigation system
• Farm houses
• Nurseries & Gardening
Applications:-
• Sprinkler and drip irrigation system
• Farm houses
• Nurseries & Gardening

5. Some facts & figures
• Estimated number of rural households was 147.90 million, of whom
60.4% were farmer households i.e. approx. 89 million
• Households with one hectare or less land accounted for 66% of all
farmer households i.e. approx. 59million
• Non-irrigated farming in India still accounts for:
– 67% of total cultivated area,
• Average grain yields on non-irrigated land in India are only 0.7 to
0.8 tons per hectare, which is only one third the yield level on
irrigated land
Source - http://www.mospi.nic.in/press_note_ifh_nss59.htm
http://www.agbioworld.org/biotech-info/topics/dev-world/policies.html

6. Drip irrigation system
• International Development Enterprise India (IDEI) implemented the
Drip irrigation programme in India started in 1997
• Address the irrigation problems of small and marginal farm families
living in water scarce regions of India
• Drip irrigation is a water-saving technology which enables slow and
regular application of water directly to the roots of the plants
• Erratic rainfalls make it more suitable.
Source –ww.idei.com

7. Drip irrigation system
• Drip Irrigation has been rigorously tested with:
– sericulture farmers in South India,
– watershed projects in South India,
– cotton farmers in Madhya Pradesh,
– vegetable growers and agri-input dealers in Himachal Pradesh,
– small farmers in Madhya Pradesh and Rajasthan
• Test-marketed in selected districts of Maharashtra and Gujarat for
growing fruits and vegetables.
• Currently IDE (India) is promoting Drip Irrigation kits in Gujarat,
Rajasthan, Maharashtra, Karnataka and Uttaranchal

8. The Market Scenario
Local players
Unnati, Varna, Oswal, Kiwi
etc
National players
CRI, Lubi, Texmo, Shakti,
KBL
Local Assemblers
KBL owns a 2% market
share within this.
Source:- Associate VP, KBL
Total market is about INR 7000 crores

9. Geographical Presence
• Focus states:
– Punjab
– Rajasthan
– UP
– MP
– Chattisgarh
• Secondary focus states:
– Maharashtra
– West Bengal
– Gujarat
• Rajasthan – wheat, sesame,
groundnut. The waters of the Indira
Gandhi Canal (Rajasthan Canal) is now
helping in the cultivation of citrus
fruits, including tangerines, oranges
and lemons.
• Punjab - wheat, maize, rice, and
bajra.. The leading cash crop cultivated
here is cotton. Other important crops
of Punjab agriculture include
sugarcane, potatoes, and groundnuts.
• MP - wheat, cotton. Rich in minerals
as well.

10. Manufacturing
• Critical operations done in-house
• ATPP – Assembling, Testing, Painting, Packaging
• 2 major plants – In MP and Pune
• The “head godowns” are at each of these plants with 17 other
godowns across India
85%
3%
2%
4%
6%
Costcomponents
Material
Transportation
C &F agents

11. Distribution
Dealers
Sub - dealers
Customer/ End user
About 500 dealers in India
About 400 Sub – dealers in India
• Standard margin for dealers is 30%
• Credit period given is 15-30 days
• For cash purchases, additional 3%
discount is given
• On a minimum turnover achieved (5lacs),
another 3% is given
• Sub-dealers, usually get 3-5% as they do
not incur any carrying costs

12. Competition
• Unorganised Players
OSWAL
• One of the leading
players, as big as an
organised player
• More than 750
distributors
• 900 varieties of pumps
• Most operations done
in-house
• Production capacity of
2.5lakh units
Unnati
• Unnati Pumps
Pvt.Ltd. is one of the
reputed manufacturer
of India,
• Plant at Ahmebabad,
Gujarat, India.
• Range of over 2000
models of submersible
pump sets.
• Bore wells ranging
from 0.5 hp to 120 hp
Others
• Kit Assemblers
• Manufacturing &
operating costs are zero
• Use the lowest end of
components
• Have advantageous
access to the end user

13. Competition
• Organised Players
Texmo
• One of the oldest
players in the market
• Market leader
• Turnover of approx.
INR 3billion
• More than 2500 dealers
across India
• Strategy is to deliver
highest quality through
constant innovation
CRI
• One of the few players
to have fast captured
foreign markets, in more
than 70 countries
• First player to
introduce 100% stainless
steel pumps
• More than 277 types of
pumps
• Wide range of
Submersible pumps and
motors in 3”, 4”, 6”, 8”
& 10
Lubi
• Group sales turnover :
@US$ 65 Million
• 400 Distributors &
Dealers
• Global Presence -
North America, Europe,
Middle East, North &
Central Africa & South
East Asia.

14. Challenges faced by KBL
• Depleting water table
• Availability of electricity
Natural/ National constraints –
limited control
Market/ Marketing
constraints
• Database of the customers
• Unorganised market
• Distribution
• Education and training of the users

15. Water & Electricity
• The United Nations Development Programme (UNDP), in a report released
on November 9, 2008, has said that
“lack of water is caused by lack of power, rather than by limited
resources. The scarcity at the heart of the global water crisis is rooted in
power, poverty and equality, not in physical availability”
• India – biggest irrigation system – poorest in performance
• Due to siltation, about 1.95 billion cubic metres of reservoir capacity are
getting silted up each year
• Dam lobby:
“In India, about 13% of the population has access to irrigation. Within this
group, the richest one-third of farmers receives 73% of the subsidy.”
Source - Himanshu Thakkar is Coordinator of the South Asia Network on Dams, Rivers &
People, and Editor of Dams, Rivers & People) InfoChange News & Features, November
2008

16. Water & Electricity
• Areas like Punjab have effective water management systems in place
• However, MP lacks basic infrastructural facilities and in spite of huge
potential for agriculture, the numbers reflected are very poor
• Gujarat – The Sardar Sarovar Dam across Narmada today, supplies water to
Bhuj as well and stands a prime example of good water management
• In Maharashtra – Satara to Kolhapur belt, the planning is good
Source - Himanshu Thakkar is Coordinator of the South Asia Network on Dams, Rivers &
People, and Editor of Dams, Rivers & People) InfoChange News & Features, November
2008

17. Steps taken by KBL
5 Promise Plan
• Sustainable development
KBL will work with the government towards a better India
– Launched a program “Ek boond” in Rajasthan
– Work in tandem with the local body to map & document the entire
area, water reservoirs, retention bodies, etc
– Currently, no clear blue print is available about various pockets
‘madakkas’ that retain water thereby, making cultivation difficult
• Research & Development
Joined hands with Central Board of Irrigation & Power (CBIP) which
promotes research & professional excellence in Water Resources, Energy
and Allied Field

18. Steps taken by KBL
5 Promise Plan
• “Enlightenment”
In Andhra Pradesh and Punjab, the cost of electricity for irrigation
for majority of the farmers is fixed per month. It implies that at
the margin, farmers incur almost a zero cost for irrigation in the
short-run.
KBL helps these farmers with a “light box” that helps them
measure the consumption of electricity used for irrigation.
• Incentives
Cash prize worth INR 2 to 5 lakhs is given to top 3 farmers across India
who have used innovative measures to save water and electricity
e.g. – Shree Padre and his Rain Water Harvesting project across India.
• Education & Training
Source – www.godnewsindia.com for more information on Shree Padre

19. Other initiatives
• Mandi Activation
– In more than 500 select states
– KBL branded artificial wells are set up
– A live demo of the product is then given at these Mandis
– Entertainment in the form of mimicry artist, on-the-spot games, etc
are conducted to attract eyeballs
– Total cost per mandi – Rs. 150,000/-
– Total eyeballs – 3000pax
– Cost per contact – approx. Rs. 50/-
– Conversion rate – 0.5% over 6 months

20. • Mukhiya Program
– Targeting the influencer
– In more than 1000 villages in 7 states in a span of 3 months
– 2 day program spanning 4-5 hours each
– Day One – One-on-one discussion with the Mukhiya, presentation and
demo of the product
– Day Two – Similar presentation done to a slightly larger group of
people, mainly farmers that are invited by the Mukhiya
– Cash incentives are provided to the Mukhiya

21. • Enabling the Enablers
• Mechanics and Plumbers play a huge role in the sale of
submersibles
• They are usually consulted with by the farmers before making a
purchase
• Most of the times, they are also called to lower the pump
• KBL therefore, holds a “KBL Partners Meet” about 6 times in a year
to inform, educate and win the support of these enablers
• The Mechanics and plumbers are also given a chance to interact
with the local dealer/ sub-dealer, thus encouraging some form of
mutually beneficial partnership

22. Way forward
• KBL, is still a small player in the segment
• It is a distant follower and therefore, needs to focus on
establishing a stronger foothold
• Recommendations
– Focused segmentation
• Small farmers across Talukas – Districts – Pin codes
• Agri input dealers
• NGOs – for promoting awareness

23. • Static & Dynamic promotion
– Wall paintings
– Pamphlets
– Video Van shows
– Farmer meetings
– Continue with the existing programs
• Distribution Network
– Increase the number of sub – dealers
– Tie-up with government bodies like IDEI

24. “If a postman can reach every pin
code, so can KBL”
Subodh Srivastava
Associate Vice-President
Marketing & Distribution
KBL