HARIYALI KISAAN

BAZAR

Prof. Vinay Jha

Hariyali Kisaan Bazar

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Hariyali Kisaan Bazaar

 DEFINING RURAL INDIA

 RURAL RETAIL SCENARIO IN INDIA
 REGULATIONS AND POLICIES IN RURAL RETAIL
 SIGNIFICANT PLAYERS –
1. Goderj adhar

. ITC -Chaupal

. Hariyali kisan bazaar

. BUSINESS MODEL OF ITC

. IMPEDIMENTS &
RECOMMENDATIONS
 Hariyali Kisaan Bazar

Census of India defines Rural Settlements

as...... Population lower than 5,000 persons
Population density lower than 400 persons/sq.
km At least 75% of male population engaged in
Agri. activities. June 7, 2009
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RETAIL TOWARDS RURAL AREAS

GREAT OPPORTUNITIES FOR MARKETER
THE INDIAN RURAL MARKET
 Hariyali Kisaan Bazar
Rural India consists of 720 Million consumers
across 6,38,000 villages
--- 17% of these villages account for 50% of the
rural population and 60% of the rural wealth
----Extensive reach is required as to cover 50%
market 1,00,000 villages must be catered
Immense opportunity amounting to US$ 125
billion
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Rural Retail is growing @ 7% p.a.

Rural consumption is also shifting from
basic food grains to fruits, vegetables,
dairy and poultry products, as well as
beverages
Demand for better quality food leading to
huge demand for basic foods
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The Rs 140,000 crore rural retail market is

expected to cross Rs 180,000 crore mark
by 2010, And up to Rs 240, 000 crore by
2015 (CII).
The rural revolution is driven by
R ising purchasing power,
Changing consumption patterns,
Hariyali Kisaan Bazar

Increased access to information and

communication technology,
Improving infrastructure
Increased government initiatives to
boost the rural economy ,
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 OCCUPATIONS URBAN RURAL

 Cultivator 5 40
 Petty Shopkeeper 15 5
 Wage earner 20 35
 Salary earner 40 20
 Others 18 8
 US China
India
 Total Retail 2325 323 180 Value $ bn
 % Salience to above
 Traditional 15 80 98
 Modern 85 20 2
 Source: Census 2001, IRS 2006, AC Nielsen Source: AC Nielsen
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Is a value seeker
Seeks comforts and amenities
Does not wish to be seen as the deprived cousin.
Does not experiment easily but
this does not mean that “he would not change”.
Values local relationships because
of unfavourable past experiences
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 Poor migration from lab-to-land
 – Multiple agencies involved in research,
but lab results not getting replicated in the
farmer
 field
 – Lack of credible agri-advisory to farmers
 • Availability of quality inputs
 – Un-organised retail of inputs leading to
low control on quality of inputs being
supplied
 • Availability of Finance : Low
coverage under formal credit / crop
 Hariyali Kisaan Bazar
Primary focus on increasing Income Levels
Qualified agronomists manning the outlets & providing
customized technical
advisory to farmers 24 X 7. Increasing agricultural
incomes can,
• Trigger the rural economy
• Stem the migration to cities
Constraint : Agronomy
What has worked ?
• Customized solution
• Collaborative approach
Hariyali Kisaan Bazar

Major Players in Rural Indian Scenario

GODREJ ADHAR
ITC-CHAUPAL
HARIYALI BAZAAR
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FORMAT OF GODREJ ADHAR

FMCG products, fertilizers, animal feed,
etc. Services like banking, insurance,
pharmacy, postal services and petrol
pumps
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 Services offered crop advisory

services, soil & water testing
services; buy back of output, crop
finance, supply of agri inputs and
animal feeds, transfer of information
(weather, price, and demand
supply), door delivery of products
etc.
 A COMPLETE SOLUTION PROVIDER
FOR THE INDIAN FARMERS provides
professional guidance with an
 Hariyali Kisaan Bazar
24 outlets in eight rural locations across the
country and each outlet services 20 villages in its
vicinity
Godrej Aadhar has already forged JVs with Apollo
Pharmacy, Tata Agrico, Bajaj Allianz Life
Insurance and HPCL for value added services at
the outlets.
The company plans to set up more than 1,000
stores by 2011.
Hariyali Kisaan Bazar

The Trusted Rural Business Hub Help

the customer increase his income,
educate the customer, before you sell
to the customer
 Hariyali Kisaan Bazar

Hariyali Kisaan Bazaar

Mr. Ajay Shriram, Chairman
Mr. Vikram Shriram, Vice Chairman & MD
The concept aims to simplify the
Private label seeds
Contract farming – vegetables
Procurement
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 DSCL plans to expand to 250-300
outlets by the end of FY 2008-09. Each
store covers an area of 3-4 acres and is
managed by a team of 7-8 people
whom the Company trains continuously.
It offers the rural household all farming
and consumer products and related
services along with financial services
under one roof. The company also
launched credit services during its
second quarter 2007-08, in association
with HDFC bank, providing loans for
various purposes. June 7, 2009 Hariyali
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The number of Hariyali outlets now

stands at 177, which the company
plans to scale up aggressively to
around 300 outlets by March 2009.
Launched in 2002-03 ‘ Hariyali’ is now
present in 8 states across India
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This concept aims to Provide the power

of expert knowledge to even the
smallest farmer. Information helps
farmers secures better price, quality
and productivity
Hariyali Kisaan Bazar

Benefits to farmers include

Better purchase price of agri-inputs
Avail information on best farming practices
Command prevailing market prices
4 million farmers benefited through 6,500
installations covering around 40,000 villages
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 Providing Urban Amenities in Rural

Areas
 Making available “Aspirational” but
“Value for
 Money” household products
triggering demand in
 the rural economy
 Giving the Customers the right to
choose
 Giving the farmers respect, dignity
and
Hariyali Kisaan Bazar

Assured quality & quantity

Easy Availability of quality products at
“city-like” fair prices
does two things,
• Reforms local shopkeepers / trade
channels
• Stems the “Market Migration” to
cities
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Linking Farmers through IT

Providing ATM access,
weather forecasts,
commodity prices &
commodity futures
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 Catchment Radius of 20-25 kms.

 Approx. gross income Rs.280 cr. ($
60 mn)
 About 15-20,000 Agricultural Land
 CATCHMENT DETAILS
 farming families 30-40,000 Ha
 With each center reaching out to
20,000 farming families, the
 Hariyali model is proving to be an
example of commercially
 sustainable business venture which
Hariyali Kisaan Bazar
Hariyali Kisaan Bazar
Thank You