 Good evening Batchmade Sensor, we are team 7 and we are going to present about the supply chain management of fresh fruits and vegetables in India and our team includes myself Malamika Mohanpe, Pratayakundu and Shubham, first we will be presenting our market research report followed by our business plan. Lovely. Okay, firstly let us understand what is supply chain management, supply chain management includes all the activities which involve handling of a good or product from the point of its manufacture or harvest till the point it finally reaches the consumer. And talking about the fruits and vegetables, India is the second largest producer of fruits and vegetables in the world next to China with an annual production of 276 million metric tons. And to understand, let us understand why is it, why is it a challenge to market fruits and vegetables because of the following reasons, perishability. Fruits and vegetables are highly perishable in nature. We know that the shelf life of most of the fruits and vegetables ranges from few hours to few days and that is a serious problem and also the seasonality. Not all fruits and vegetables are available throughout the year but when we see their demand in processing industry and in other industry, it is needed throughout the year. So this seasonality poses some problem. Also the bulkiness of the produce, fresh fruits and vegetables are bulk in nature. This causes difficulty in handling and also in transportation. This also increases the transportation costs which finally add up to the price for the consumer. So there is a serious lack of skilled labor in India both in supply chain management and in processing industry which results in wastages and destruction of the produce. To understand the market of the fruits and vegetables in India, we have tried to understand the scale of production and the availability of fresh fruits and vegetables in India. Out of the 276 million fruits and vegetables production, 94 million is the fruit production and 182 million is the vegetable production. And from the first two tables, we can see the rank of India and its percentage share in the global production. India is the major production in many fruits and vegetables. We stand first rank in banana and mango and in vegetables, we stand first in peas, second in cabbage, brinjal, cauliflower and onion. Similarly, the third table shows the year-round availability of the fruits and vegetables. That is whether they are seasonal or they are available year-round. Okay, next I will go for. Okay, we tried to understand what are the serious problems in the supply chain management of fruits and vegetables and why there is a serious need for supply chain management. Firstly, the problem is the difference between the per capita production and the actual per capita availability. When we divide the quantity of fruits and vegetables with our population of 128 crore, we can see that the per capita availability in fruits should be 201 grams and in vegetables, it needs to be 388 grams. But the actual figure that is the actual availability is 141 grams in fruits and 272 grams in vegetables. The difference between 201 grams and 141 grams is around 30 to 35 percent. That is the post harvest losses. These losses are such high that they cause an economic drain of about 2.4 trillion rupees, that is 2.4 lakh crore annually. That is the scale of wastages that is taking place. Also, due to the lack of proper supply chain and supply chain in fruits and vegetables, the processing industry in India has not grown to a good number. In India, only 2.2 percent of fruits and vegetables undergo processing, whereas in countries like China, it is 23 percent, USA 65, Philippines around 78 percent. So this is because there is a serious lack of supply chain between the farm gate and the processing infrastructure. Also the existing supply chain is highly inefficient and too many intermediaries are involved. It is estimated that about 75 percent of the consumer price is taken up by the intermediaries in the supply chain, which shows that how inefficient it is. The future scope, we can see that the processing industry market of India is set to grow to a volume of 264 billion rupees by 2023 with a CAGR of 7.62 percent. This is the amount of scope that is available for the players who want to enter the supply chain market. About the supply chain management process, my groupmate will explain. Good evening, everyone. Am I audible? Yes, you are. Okay. Thank you so much, Alam sir. Now from here onwards, I will be continuing. So basically, supply chain management. So what actually it is, Alam Prabhu sir has told. Let us try to understand it again in a very simple way. So it is just a design and operation of physical management information and financial system which are needed to transfer goods and services from point of production to point of consumption in an efficient and effective way. What it means is if we have efficient supply chain, then it will identify superior suppliers and distributors and help them to increase their productivity. Now that will bring down the customer cost also and the customer will be satisfied more. So basically, it represents the management of the entire set of production, manufacturing, distribution, marketing activities by which a consumer gets a desired product at his desired price. So let us see the flow chart of supply chain management. So first of all, we are having the inputs. Then after the production, then after the procurement and storage, after that it goes for the primary processing and then after it goes for secondary processing, after that retailing is done. Sir, can you move with the next slide? Okay. So now we are having the cold storage. So for the status, now we will be talking about the ground reality what actually it is having. So required capacity for cold storage in India is estimated around 350 lakh tons. Why? You already told about that we are having that much production of fruits and vegetables. So estimated capacity is 350 lakh tons. But the current cold storage capacity is only 226.7 lakh tons. And you know what? Only 49% of India's total capacity is in Uttar Pradesh and almost 80% concentrated only in Uttar Pradesh. So now you can imagine how much centralised it is. So that there is need for decentralisation of this. So a lot of money is needed for building infrastructure kind of thing. So now we will be talking about the problems. So problems first is that 75-80% of the warehouses which are refrigerated are suitable only to store potatoes which do not generate that much revenue, which only will generate 20% of agricultural revenue and only 10-11% of the fruits and vegetables produced in India use cold storage. So these are some of the hard reality we have to know. So this is the kind of infrastructure the cold storage is having. If the storage capacity needs to be increased by 40%, then vegetables can be avoided at a very large scale. So it needs to be thought on. Thank you. My group member will continue with the minute. Good job. Thank you. Okay. Thank you everyone and good evening. So today I am going to talk about the impact that COVID-19 had on the supply chain, on the entire supply chain of fresh fruits and vegetables. So there was a survey conducted by Indian Food Policy Research Institute, IFPRI conducted a survey in June 2020, which found out that among all the farmers who had harvested certain parts of their produce, 29% were reluctant to sell it due to market loot. 13% had sold the harvest, but the costs were at very low. Means they sold at minimal prices and 7% stated that they actually had to throw out their produce. Can we imagine? They had to throw out their produce. And the farm to fork business model, which everyone talks about, and it is one of the most hyped up topic of this generation, but yet the farm to fork business model could not withstand this severe shock brought about by COVID-19. Retailers also faced severe disruptions in procuring fresh fruits and vegetables due to pandemic conditions. And something interesting is that online prepared food market dropped by 75%. Like apps like Swiggy and Zomato, they are registered at drop by 25%. But on the other hand, groceries, e-groceries which serves fruits and vegetables, actually they are demand increased by 27%. But they were unable to capitalize on it. So the reality is such, growth was seen, demand growth was seen, but they were unable to capitalize on their demand due to a broken supply chain. And the Kirana store, they immersed in the saving grace and they were able to cope up with the situation better. So the main challenge is that how we can modify the supply chain in order to capitalize the demand that is already present. So the next slide will be cleared by my friends. So that was about the secondary data collection we did through Journals and Credible website. But we also felt the need for a primary data collection so that we could better understand the consumer preferences as well as the issues they are facing and their approach towards procurement of fresh fruits and vegetables. So we collected data through surveys and we found that consumers approached to procure fruits and vegetables through different sources such as directly from farmers, neighborhood shops, local bazaars, supermarkets, online stores, weekly markets, then even community supported agriculture programs. But among them it was found that about 72.5% of the respondents were, respondent consumers purchased from local bazaars and about 30% purchased from supermarkets and very negligible respondents purchased from community supported agriculture programs. And we also tried to understand which are the parameters which consumers preferred while consumers ranked while preferring for procuring fresh fruits and vegetables. And the rank was as like freshness or then organic product, then they focused over nutritional quality, price, visual appeal and availability. This was the ranking mostly consumers preferred for procuring. Next slide please. So we also tried to understand the difficulties faced by consumers while procuring this fresh fruits and vegetables and we found that among the respondents about 22.2% of the consumers were facing difficulty and the main difficulties were the irregular supply of fresh fruits in their locality and the issue of shopkeepers mixing up fresh and old products together and also the lower production in their local area because of which they have to move over to other markets and eventually losing up the freshness of the product they are receiving. And it was also, we also tried to inquire if the consumers were willing to pay more for procuring fresh fruits and vegetables from at their doorstep than at supermarket. And we found a positive response from about 56.8% of the respondents of the survey. And about 47.7% of the consumers were willing to have a premium in procuring fresh fruits and vegetables at their doorstep. Next slide. So based upon this, we thought of starting something new. Now Pratay will be dealing with it. Yes, up until now we were dealing with the problem. Now what is the solution? The solution is Farm Fresh Private Limited co-founded by Malvika Mohan P, Pratay Kundo, Subham and Allam Prabhu. The headquarter will be in Bangalore. Malvika Mohan P will take care of, will be the CEO. I Pratay Kundo will be the Chief Operating Officer. Subham will be the Chief Marketing Officer and Allam Prabhu will be the Chief Financial Officer. Next slide please. Okay, so what is Farm Fresh? Farm Fresh is a startup which will deal in B2B supply of fresh fruits and vegetables. So basically our business will be twofold. On one hand, we will minimize post harvest losses by adopting new post harvest management technologies and by funding the building of old storages. And on the second, we will also supply fresh fruits and vegetables directly from the farmers to the B2B consumers like hotels, restaurants and caterers. And also, we would be passing out the technical knowledge regarding demand and the kind of vegetables which are trending to the farmers so that they might improve their kind of farming. Next slide please. Okay, so here are the mission, vision and goal. So the mission is to provide customers with fresh fruits and vegetables. We will basically provide B2B customers with fresh fruits and vegetables from farmers. That is our mission. But our vision is to streamline the broken supply chain management. We do not want to be just another company which supplies fresh fruits and vegetables from farmers to the B2B suppliers. We also want to do something new. We want to modify India's broken supply chain by building storehouses, old storages and by utilizing state of the art post harvest management systems. When it comes to goal, our short term goal is to utilize the supply demand lacunae that exists in the fruits and vegetables scenario for creating a worthy enterprise. Next slide please. I will take it from here. So, am I audible? Hello. Yes, yes, a little bit of people. Hello, hello. Yeah, better. Okay. So the problem we have identified about this is that it has already been told that 30 to 40% of the fruits and vegetables are wasted due to the post harvest losses. So there is a lack of basics as well as specialized infrastructure such as goal storage, repel vans, ripening chambers, school chains, etc. Also there is a missing link between production and resource system and consumers. I will just want to quote a very amazing statistical figure in front of you is that India is shot by 10 million tons of cold storage capacity due to which over 30% of the agriculture produce goes waste every year. More than 20% of the produce from fields is lost to poor harvesting facility. Sir, continue with the same slide, sir. I will tell you. So the cold storage facility basically are generally as I told earlier for a single commodity is mostly available for potato, orange, apple, grapes, pomegranates, which results in very poor capacity utilization. Right. So can we go with the next slide, sir, please? Yes. Solution. For these problems, what are the solutions we are going to offer? So first of all, reduction of product losses in transportation and storage. So how we are going to do that? Most produce produced is now moved in road vehicles. We know that with lesser amount by sea, air or inland water. So what we can prefer is that we can go with the sea way. We can go with the, with the airway, with the go with the inland way. So there are some things which we can focus on. And also the dissemination of technology, capital and knowledge. So there will be as we are seeing that close vehicles without refrigeration should not be used to carry fresh produce, except on very short journeys. It's okay. But for, for, for a long journey, those which are not having refrigeration should not be preferred. So we are coming, this is the problem. And we're coming up to the solution that the lands will be well equipped with the refrigerated chamber. And third one is the better control of product safety and quality. So the size and design of packages we are going to prefer should give adequate level of ventilation of contents so that the, there will be minimum, minimum, minimum wasted will be there. And the package should be strong enough to protect the contents as well. Large investment and risks are shared among the partners. Among us we will be sharing the risk or whatever the risk will be involving in establishing this business. And also on the online, on time delivery and high customer satisfaction is being expected because the sense of trust we will be trying to create through our punctuality and discipline. Okay. Next slide. From now, my member will come. Yeah, I'll take the number. Okay. Thank you. Now, discussing upon the service we are providing, initially we are focusing upon farmers, then over the post harvest services and then finally to the services to the buyers. So in the case of farmers, we are focusing on buying fresh fruits and vegetables directly from farmers at a pre-negotiated contracts. And here we are focusing like the amount to be specified will be determined through forecasting methods such as the demand forecasting methods so that farmers are given justice. And it is, and the pricing is made in a justified manner. Then comes about the post harvest services. That's about after procuring directly from the farmers, we will directly source these products into the nearby cities. And from there, these crops would be stored in cold storages. We are focusing on utilizing the pre-existing cold storages in that particular area. And in case if they are not available, we would be trying, the company would be trying to construct cold storages from the company side and to recover the cost incurred while constructing the cold storage, the excess space available in the cold storage would be leads to FBOs, FPCs or corporate societies. Then it's about the service to the buyers. So our company is a platform where buyers can directly buy fruits and vegetables and the service shall be exclusively provided to wholesale buyers and business. So we are focusing over developing a mobile app that we should be done by our R&D team through which buyers will be able to order their requirements and approach and which could lead to an efficient process across our service. Then we are also looking for blockchain technology and to provide 100% traceability in our service and also for a premium membership feature that would be available through the app so that the customers, they can go for a monthly premium which would provide them added benefits like faster delivery and complimentary offers. So these are the services which we are planning as of now. Next slide please. So as we had said that we are focusing exclusively over wholesale buyers and businesses, our target markets are hotels, restaurants, catering agencies, cafeterias and corporate canteens of Indian metropolitan and TITO cities. Next slide please. So these are our competitors in this domain. The main competitors are ninja card, big basket, jumbo tail, nature's basket, farmyok and groffers. Okay Malavika, I will take from here. Next is our strategy and operations. Our strategy or our aim is to provide the fresh fruits and vegetables to our customers that is mainly retailers in such a way that the produce reaches within 12 hours from the point of harvest from the time it is harvested from the fields. For that we have integrated our supply chain with the technology and real time tracking. So our supply chain includes following stages. First is the forecasting demand. In the morning the sales team gives the forecasting team about the customer demand and the customer growth plan. Taking into note which the forecasting team tries to come up with the quantity which will be needed. Then that quantity is informed to the procurement team. The procurement team then informs the farmers that this is the quantity we require from you and will you be able to provide us with this. Then once the farmer confirms that he is ready with the quantity the next step will be the pricing. For pricing the forecasting team takes into account the current market prices from the nearby markets and average profitable price for both our consumers and our suppliers is fixed at the same point of time to avoid any price risks in the future. Then the next stage is farmer harvesting the produce. Once the farmer gets the price notification from the procurement team in the evening he harvest the produce from the farm and then takes that produce to the collection centers which are collection centers are located in the nearby villages near to the farms. The farmer's stake is produced to the collection centers there in presence of the farmers the produce is taken and is graded and weighed in front of the farmer to maintain transparency. Then after depositing the produce the farmer receives a receipt and once after he receives the receipt within 24 hours the money will be transferred to his bank account. Then from many such collection centers the produce moves to the fulfillment centers. Fulfillment center is nothing but a big warehouse which is located just outside the city and two fulfillment centers produced from many small collection centers arrives. Here it is further graded and is batched according to the demand of different routes. From fulfillment centers it again moves to distribution centers. Distribution centers are the small storage centers which are located within the cities so that at different patches so that it's easy to take the produce from these distribution centers to the route where our customers are located. From distribution centers in smaller vehicles the produce is dispatched to the routes where our customers are located. So early in the morning our produce is deposited in the shops of our consumers and once all the orders are covered while coming back our distribution team collects back the empty crates and also receives the cash if the retailer wants to pay in cash. Okay and we have tried to come up with some financials that is to maintain one SQS unit that is one stock keeping unit. I would go ahead with it. So 25 minutes over so please kind of quickly. So I won't go into the detail. So there we have come up with the cost estimates like if we want to create a warehouse that would cost around 9 lakh rupees and preliminary and pre-operative costs are about 660,000 and we have come up with a plan by which we can acquire this money 9,60,000 partly from promoters partly from SIDBI and also partly from venture capitalists like Omnivore. Next slide please. Okay and these are the fundraising prospectors angelizing venture capitalists crowdfunding or from mudra and the stand-up India. Next slide please. Yes so this is the summary. I won't waste much more time just I would like to conclude by saying that Compresh is a platform in which buyers and sellers meet in which the post harvest is taken care of and supply is produced and harvested within 12 hours while maintaining the quality and quantity. Thank you sir. Thank you for giving us this opportunity. Thank you. Thank you so much. That's phenomenal. Wonderful. Wonderful.