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A REPORT ON

Exploring the Business Opportunity and Market Potential of Agro Bio product in Kota and Baran District of Rajasthan for Ambika Biotech

A project conducted at Kota & Baran district (Rajasthan) UNDER AMBIKA BIOTECH

SUBMITTED BY

Manoj Sonkaria & Ramresh Meena First year, Second sem.


Prepared in Partial Fulfillment of degree of MASTER OF BUSINESS ADMINISTRATION (AGRI-BUSINESS)

Center for Agri Business Management RAJSTHAN COLLEGE OF AGRICULTURE MAHARANA PRATAP UNIVERCITY OF AGRICULTURE & TECHNOLOGY UDAIPUR (RAJ.)
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DECLARATION

This is to declare that, we Manoj Sonkaria & Ramresh Meena, students of Master of Business Administration (Agri-Business) (2010-12), CABM, RCA, MPUAT, UDAIPUR, has given original data and information to the best of our knowledge in the project report titled Exploring the Business Opportunity and Market Potential of Agro Bio product in Kota and Baran District of Rajasthan for Ambika Biotech and that no part of this information has been used for any other assignments but for the partial fulfillment of the requirement towards the completion of the said course.

Manoj Sonkaria & Ramresh Meena CABM, RCA, MPUAT UDAIPUR

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ACKNOWLEDGEMEN T
We are greatly indebted to Ambika Biotech for giving the opportunity of having a real time experience of working with a highly professional corporate organization. We would like to express our heartfelt thanks to Ambika Biotech management specially Mr. Saurabh Singh Tomar (CEO) for accepting our request and giving this chance. We are very grateful to Mr. Saurabh Singh Tomar (Project Guide) for his constant support and encouragement throughout the span of the project. The confidence he instilled in me paved the way for proceeding with the survey. We thanks are also due to Dr. D.C. Pant, Nodal Officer, CABM, RCA, UDAIPUR and the staff of CABM Cell for this assignment and the called for help during the course of the assignment. We would also like to express our gratitude to all the respondents whose inputs are an important part of the venture.

We are very grateful to Mrs. Ranjana Audichaya (Faculty guide), Mrs. Arti Arha and Ms. Tarannum Hussain, CABM, Rajasthan College of Agriculture, MPUAT, Udaipur for providing necessary help during the course of project. A special word of thanks to my parents, sister and friends whose backing saw me through this task.

Manoj Sonkaria & Ramresh Meena RCA, MPUAT, UDAIPUR

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INDEX

Chapter No. 1 2 3 4 5 6 7 8

Topics

Page No

Rationale of the Survey Executive summary Company profile. Research Methodology. Finding: Data Presentation and Analysis. Suggestion & Conclusion. Annexure. References. Questionnaire.

5-5 6-8 9-11 12-16 17-24 25-25 26-26 27-27

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Chapter - 1 Rationale of the Survey

As the intensity of competition in the market continues to rise, the need for evaluating brand performance vis--vis competitors brand is becoming top priority. Keeping an eye on the threats for the current brands and opportunities for newer brands has become inevitable for the companies. A brand's value is a function of dealers and farmers perception, their attitude towards it and the economic value or price that they attach to the brand become very crucial. The report gives a descriptive picture regarding the aforesaid parameters and tries to capture the opportunities lying for a new molecule in CFCLs water soluble fertilizers portfolio. It develops a comprehensive marketing strategy including brand development, effective sales promotion strategy. This report also gives a vivid business opportunities & sales promotion strategy to the company exclusively for its water soluble fertilizers business. In the wake of intense competition in the market, the need of evaluating performance at each stage of marketing is becoming a top priority. With so many MNCs and Indian companies vying for a major share in the countrys biggest fertilizer market, a study evaluating the progressive growth of the top water soluble fertilizers brand is inevitable. With so many companies vying for this share of mind, it becomes imperative for any company to devise new strategies and work hard for its proper implementation along with an eye on the strategies of the competitors.

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Chapter - 2
EXECUTIVE SUMMARY

PROJECT TITLE - Exploring the Business Opportunity and Market Potential of Agro Bio product in Kota and Baran District of Rajasthan for Ambika Biotech ORGANIZATION Ambika Biotech REPORTING OFFICER: Mr. Saurabh Singh Tomar FACULTY GUIDE - Mrs. Ranjana Audichaya & Dr. G.L. Meena NAME OF THE STUDENT- Mr. Manoj Sonkaria & Ramresh Meena

PROJECT IN BRIEF- This project is based on market potential of biofertilizers and other fertilizers. Biofertilizers are mostly used in legume crops viz., soybean, gram, groundnut, pea etc. To provide better quality biofertilizers Ambika Biotech brings new product of biofertilizers. To serve the farming community in a better way and to know the market potential and promotional tools for biofertilizers Ambika Biotech conducted this project.
OBJECTIVES:

1) To access the current market potential. 2) To find out top brands and their market share. 3) To find out business opportunity in Soyabean, Wheat and Rice crops.

RESEARCH METHODOLOGY Research design : Exploratory research Area of Study: Kota & Baran of Rajasthan

Sources for data collection : Primary and Secondary data Tools for Data Collection: Interview schedule containing both open ended and closed ended questions. Population: All dealers of two districts of Rajasthan Sample Size and Chapter: 175 dealers from two districts of Rajasthan

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Sampling Technique: Snowball sampling and Judgemental sampling (Non probability sampling) Sampling Procedure : Multistage sampling Duration of the Project: 17th May to 10th July.

FINDINGS:

1) The total market production of biofertilizers is 24455 tonnes in India and In 2008-09. 2) Tamil Nadu produced 3733 tonnes of bio-fertilizers followed by Karnataka at 3696 tonnes. 3) The other major producers of bio-fertilizers are Kerala (1937 tonnes), Maharashtra (1861 tonnes) and Madhya Pradesh (1588 tonnes).

Recommendations: 1. Ambika Biotech should include farmers also for market research. 2. Company should communicate about the benefits of bio products to farmer as well as dealers before launching its product through a mixed promotional activities in both the districts. 3. Company should concentrate specially on Pulses, Rice, Wheat and Soybean. 4. Among the four segment company should concentrate specially bio fertilizer and bio plant growth regulator.

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LIMITATIONS: Limitations of the study: This study being a student project has some limitations as follows: 1. Limited time factor and judgmental sampling of villages and respondents. 2. A small amount of bias on part of researcher may also exist. 3. Language barrier at some places between respondents and researcher, though taken care well by the companys field staff. 4. Availability of Vehicles is also a limitation, faced by me during my project.

Objectives of the study: 1. To access the current market potential 2. To find out top brands and their market share. 3. To find out business opportunity in Soyabean, Wheat and Rice crops.

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Chapter 3 PROFILE OF AMBIKA BIOTECH

Ambika Biotech is an ISO 9001:2008 certified company and this company follow the Six Sigma Technique in manufacturing process for delivered the higher quality of the product.

Innovation & Excellence:We use innovative technology to manufacture high quality BioFungicides (Trichoderma Viride), BioFertilizers (Rhizobium, Azotobacter and Phosphate Solubilizing Bacteria), Neem Pesticides, Plant Growth Promoters, and Vermicompost & Organic Manures. Ambika Biotech has been established with an objective to provide Organic Farming inputs to the farmers, and to make the earth a better place to live. The leadership team comprises of an Ex-Deputy Director of Agriculture, having 40 years of experience in scientific agriculture; a Biotech scientist, and a management professional having experience of 11 years in various multinational companies. Research & Development:Our Research and Development Chapter possesses paramount importance in our organization as it allow to make our products as per the international standard. It is engaged in carrying various research activities to find innovative and new production techniques. It comprises Biotechnology scientists that industriously work for the betterment of our organization. They are experienced
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and possess higher degrees like M.Sc. (Biochemistry) and M.Phil.(Biotech) from reputed institutions like JNU Delhi and GB Pant University of Agriculture & Technology, Pantnagar.

Corporate Values:Our corporate values that govern our business conduct are as follows.

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Product Profile:-

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Chapter 4 RESEARCH METHODOLOGY

5.1 Research design: Exploratory research was adopted during the study to explore the Dealers perception and current market potential and business opportunity of biofertilizers in Rajasthan and to find out different promotional strategies adopted by leading companies for their biofertilizers. The research was of survey type and so immense importance was given on the technicalities of sampling, method of constructing questionnaires, interviewing the respondents, editing, coding, and tabulation of data and the statistical techniques to analyze data. 5.2 Area of Study The study was undertaken in Rajasthan, viz. Kota and Baran. In Rajasthan the survey was carried out in wheat belt including two districts mention above. The districts and taluka in that districts covered during survey are as follows:

Table 5.1 Market covered in the survey. S.No. District 1 Kota Taluka Kota Ladpura Piplada Digod Sangod Ramganj Mandi No. Of Dealers 18 13 13 19 13 11

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Baran

Baran Chipa Badod Kishanganj Anta Atru Chabra Mangrol Shahabad

25 14 04 12 08 10 09 06 175

Total

Kota District Map:-

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Baran District Map:-

5.3 Collection of data


a) Sources for data collection Primary Data - The primary data sources were the wholesalers/ distributors and dealers in the two districts of Rajasthan. The methodology for the collection of primary data involved interview schedules and open ended discussions at all the two levels i.e. distributors and dealers

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Secondary Data - The secondary data sources included the web portals, different magazines and journals related with fertilizers, reports /data available with the department or university scientists

b) Tools for Data Collection There were two separate interview schedule viz. dealers & distributors. The questions were both open and close ended in nature. The questions were framed in simple language and care was taken regarding the order in which they were arranged, so that initially a good rapport can be developed between the interviewer and the respondent.
(Questionnaire is attached for Reference)

5.4 Population
Population includes all the dealers of Kota & Baran district of Rajasthan.

5.5 Sampling design:


The Convenient & judgmental sampling design was followed. The sample size of the dealers was 175, which spanned across two major districts in Rajasthan, viz. Kota & Baran.

Table 5.2 sampling Chapter & sampling size.


Sampling Chapter Dealers Sampling Size 175

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Interviewing:
The dealers and distributors were interviewed to get as best as possible from them to fulfill the objectives for which the research was taken up In case of dealers, great attention was taken to get the correct information by convincing them through initial information discussions.

5.6 Data analysis:


The data thus obtained was properly decoded and used for analysis. The data was analyzed in statistical package like Excel.

5.7 Limitations of the study:


This study being a student project has some limitation as follows: Limited time factor and judgmental sampling of respondents. A small amount of bias on part of researcher may also exist. Language barrier at some places between respondents and researcher.

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Chapter - 5 DATA ANALYSIS AND INTERPRETATION

5.1 To access the current market potential Market potential is the limit approached by market demand as industry marketing expenditures approach infinity for a given marketing environment. In other words, it is the maximum amount of sales that might be available to all the firms in a industry during a given period, under a given level of industry marketing effort and environmental conditions. The estimated maximum total sales revenue of all suppliers of a product in a market during a certain period The total market potential is calculated by multiplying the number of buyers in the market by the quantity purchased by the average buyer, by the price of one Chapter of the product. Total market potential may be stated in Rupees or Chapters. A common way to estimate market potential of water biofertilizer in price terms is as under:

Market potential of biofertilizers in quantity terms can be calculated by:

Market Potential = Total cultived area in hectare X Recommended dose in Kg/ha

Crops

Kota (ha)

Baran (ha)

Total (ha)

Dose

Market Potential (MT)

Soybean Paddy Wheat

122293 17348 91999

194417 8298 105609

316710 25646 197608

1.5kg/ha 1kg/ha 2.5kg/ha

475.07 25.65 494.02

Source: Rajasthan Agriculture Statistics at a Glance 2009-10

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5.2

To find out top brands and their market share

5.2.1 For Soyabean Crop:A. Fungicides for Soyabean

Competitors of Soyabean Fungicide


Other 13% Bayer 19% Boost Ltd. 20% BASF 26%

Coromandal 22%

From the above chart it was inferred that BASF is the market leader for Soyabean fungicides and having 26 per cent in total fungicide market followed by COROMANDAL having 22 per cent share and stand with second place.

B. Herbicide for Soyabean

Competitors of Soyabean Herbicide


Others 13% Crystal 22% BASF 18% CFCL 33%

Shriram 14%

From the above chart it was inferred that CFCL is the market leader for Soyabean herbicide and having 33 per cent in total herbicide market followed by Crystal having 22 per cent share and stand with second place. Centre for Agri Business Management 18

C. Pesticide for Soyabean

Competitors of Soyabean Pesticide


Bayr 11% Others 12% CFCL 49% Shriram 28%

From the above chart it was inferred that CFCL is the market leader for Soyabean pesticide and having 49 per cent in total pesticide market followed by SHRIRAM having 28 per cent share and stand with second place.

D. Growth Regulator for Soyabean

Competitors of Soyabean Growth Regulator


Others 20% BASF 25%

Dayal Fertilizer 20% Agrimas 14%

Dev Agro 21%

From the above chart it was inferred that BASF is the market leader for Soyabean growth regulator and having 25 per cent in total growth regulator market followed by DEV AGRO having 21 per cent share and stand with second place.

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5.2.2 For Wheat Crop:A. Fungicide for Wheat

Competitors of Wheat Fungicide


Others 13% BASF 20% Agrico 15% CFCL 29%

Coromandal 23%

From the above chart it was inferred that CFCL is the market leader for Wheat fungicide and having 29 per cent in total fungicide market followed by COROMANDAL having 23 per cent share and stand with second place.

B. Herbicide for Wheat

Competitors of Wheat Herbicide


Others 15% Coromandal 17% Shriram 22% CFCL 46%

From the above chart it was inferred that CFCL is the market leader for Wheat herbicide and having 46 per cent in total herbicide market followed by SHRIRAM having 22 per cent share and stand with second place.

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C. Pesticide for Wheat

Competitors of Wheat Pesticide


Others 16% Coromandal 10% CFCL 37%

Shivalik 10%

Agrico 27%

From the above chart it was inferred that CFCL is the market leader for Wheat pesticide and having 37 per cent in total pesticide market followed by AGRICO having 27 per cent share and stand with second place.

D. Growth Regulator for Wheat

Competitors of Wheat Growth Regulator


Others 12% BASF 47%

Excel 29%

Dev Agro 12%

From the above chart it was inferred that BASF is the market leader for Wheat growth regulator and having 47 per cent in total pesticide market followed by EXCEL having 29 per cent share and stand with second place.

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5.2.3

For Rice Crop:-

A. Fungicide for Rice

Competitors of Rice Fungicide


Others 20% CFCL 32% Coromandal 25%

BASF 23%

From the above chart it was inferred that CFCL is the market leader for Rice fungicide and having 32 per cent in total fungicide market followed by COROMANDAL having 25 per cent share and stand with second place.

B. Herbicide for Rice

Competitors of Rice Herbicide


Others 21% CFCL 18%

JV 19%

PI 42%

From the above chart it was inferred that PI (Pesticide India) is the market leader for Rice herbicide and having 42 per cent in total herbicide market followed by JV having 19 per cent share and stand with second place.

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C. Pesticide for Rice

Competitors of Rice Pesticide


Shivalik 13% Coromandal 12% CFCL 49% Bayer 26%

From the above chart it was inferred that CFCL is the market leader for Rice pesticide and having 49 per cent in total pesticide market followed by BAYER having 26 per cent share and stand with second place.

D. Growth Regulator for Rice

Competitors of Rice Growth Regulator


Others 9% Kill Pest 27% Dayal Fert. 30% Dayal Kirti 34%

From the above chart it was inferred that DAYAL KIRTI is the market leader for Rice growth regulator and having 34 per cent in total growth regulator market followed by DAYAL FERTILIZER having 30 per cent share and stand with second place.

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5.3 To find out business opportunity (New crop / more usage)


According to dealers major consuming crops of agro-chemicals Crops Dealers(175) % Rice 57 33% Wheat 25 14% Soybean 23 13% Coriander 19 11% Other Crops 51 29%

35% 30% 25% 20% 15% 10% 5% 0%

33% 14% 13%


Rice

29% 11%
Others

Wheat

Soyabean Coriander

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Chapter - 6 CONCLUSIONS AND RECOMMENDATIONS

Conclusion:1. The total market potential of Agro bio product is 475.07 MT in Soya bean, 494.02 MT in Wheat and 25.65 MT in Rice in Kota & Baran districts of Rajasthan. 2. Rice, Wheat and Soyabean are the major consuming crops of bio product. 3. CFCL, BASF, Coromandal, Shri Ram Fertilizers and Dayal Kirti are the top brands of agro-Products.

Recommendations:1. Ambika Biotech should include farmers also for market research. 2. Company should communicate about the benefits of bio products to farmers as well as dealers before launching its product through mixed promotional activities in both the districts. 3. Company should concentrate specially on crops like Pulses, Rice, Wheat and Soya bean. 4. Among the four segment company should concentrate specially bio fertilizers and bio plant growth regulators.

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Chapter - 7

ANNEXURE

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Chapter - 8

Questionnaire

Questionnaire (For dealers)


Centre for Agri-Business Management, Rajasthan College of Agriculture, Maharana Pratap University of Agriculture & Technology (MPUAT), Udaipur
Name of Shop:Taluka:Phone:Name of Dealer:Dist:Mobile:-

Major Crops (Table According to Crop) S.No. Crops / Vegetables Stages of Crop/Vegetable Agri Input sold with Technical Name, Brand Name, Company Name & MRP 1 1 Soyabean Seed Treatment Herbicide Insecticide Growth Regulator 2 Wheat Seed Treatment Herbicide Insecticide Growth Regulator 3 Mustard Seed Treatment Herbicide Insecticide Growth Regulator 2 3 4

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Rice

Seed Treatment Herbicide Insecticide Growth Regulator

Garlic

Seed Treatment Herbicide Insecticide Growth Regulator

[Manoj Sonkaria]

[Ramresh Meena]

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