Presentation on

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Conference of in-Charges of Priority Sector
Advances of Commercial Banks
Presentation on Approaches to Financing
Agribusiness in India
26-07-2008
Gopi Krishna Swarangi Vice President Food
Agribusiness Strategic Advisory Research
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Knowledge Banking in Food and Agribusiness sector

• YES BANK is focused on being The Bank for
  Businesses of the Future
• In the Indian context Food and Agri is an
  inescapable value driver for the economy and
  hence for YES BANK
• Agriculture is the backbone of the Indian Economy
• Contributes 25 to the GDP
• Employs 60 of the work force
• Contributes 15 of exports
• However the value added in Indian Agriculture is
  still low as compared to international standards

Transforming AGRICULTURE to AGRIBUSINESS will
lead to a quantum jump in value added from a
"supply-driven low-volume situation to a
demand-driven high-value business
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Our unique Knowledgebanking approach to doing
business in the FA sector

• Numerous sub-sectors across the Agri-value-chain
• right from the Farm gate to Food plate

Agri Food Inputs
Prodn. and Warehousing
Logistics Distrbn.
Trading
Processing
Food Retail Food Service

• Seeds
• Fertilizers
• Agro-chemicals
• Agri-biotech
• Irrigation
• Farm Machinery
• Poultry Feed Equipment
• Dairy Feed Equip
• Aqua Fishery Feed Equipment
• Food Packaging
• Food Ingredients

• Food Corporation of India
• State Warehousing Corporation
• Central Warehousing Corporation
• Pvt. Warehouses
• Cold Storages
• Floriculture
• Greenhouses

• Ports
• Reefer Transport
• Caterers

• Edible Oil
• Grain
• Spices
• Fruits Veg
• Meat/ aqua
• Commodity Exchanges

• Primary Process
• Grain Milling
• Edible Oil
• Dairy
• Fruits Veg
• Sugar
• High Value Processing
• Confectionery
• Bakery
• Beverages
• Dairy
• Meat Poultry
• Marine Fishery

• Super Markets
• Hyper Markets
• Fast Food Beverage Chains

A dedicated Food and Agribusiness Strategic
Advisory and Research team consisting of sector
experts has been domiciled within the Development
and Knowledge Banking Division of the bank
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Knowledge Banking helps us offer customized
products to stakeholders across the value chain
Credit
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Need for a Holistic Development Approach along
the Agri Value Chain
Consumer Orientation
Regulatory Reforms Infrastructure
Development Credit Deliverance Innovative
Business Modeling
Market Linkage
Geographic appellation
Commodity Trading
Agri Infrastructure Logistics
AEZ
Financial Services
Research Extension
Traceability
Farmer linkages
Action steps
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Select Initiatives in the Food and Agribusiness
space
 
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Knowledge Reports
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FASAR Key Government Assignments
National Institute of Agricultural
Marketing Optimal Operational Ownership Model
of Modern Terminal Markets
Ministry of Agriculture National Consultants for
Developing Framework for Selection of Private
Enterprises for Setting up of Modern Terminal
Markets
Govt. of Rajasthan and NIAM Feasibility Study for
Setting up of Modern Terminal Market in Jaipur
Govt. of Orissa and NIAM Preparation of Detailed
Project Reports for Modern Terminal Markets in
Cuttack and Berhampur
Govt. of UT of Chandigarh Consultants for
Selection of Private Enterprises for Setting up
Modern Terminal Market in Chandigarh
Govt. of Punjab Consultants for
Selection of Private Enterprises for Setting up
Modern Terminal Market in Punjab
Govt. of Maharashtra Consultants for Selection of
Private Enterprises for Setting up Modern
Terminal Market in Mumbai
Govt. of Orissa and NIAM Consultants for
Selection of Private Enterprises for Setting up
Modern Terminal Market in Sambalpur
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FASAR Key Government Assignments
Govt. of Andhra Pradesh Assessment of
Infrastructure of Existing APMCs and Development
of Strategy for their Modernization
Govt. of Rajasthan and NIAM Assessment of
Infrastructure of Existing APMCs and Development
of Strategy for their Modernization
Govt. of West Bengal Preparation of Agricultural
Marketing Vision 2011 Document
Govt. of Gujarat Advisory for
Development of Modern Fruits Vegetables Market
in Surat, Gujarat
Govt. of Gujarat MoU for Development of
Integrated Agro Food Park on PPP basis
IFFCO-Greenport JVC Implementation of Integrated
Agro Food Park in Nellore, Andhra Pradesh
National Horticulture Board Evaluation of Role,
Structure and Continuation of National
Horticulture Board during XI Five Year Plan
HAFED Preparation of Vision and Comprehensive
Business Plan
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FASAR Key Government Assignments
APEDA Streamlining of Existing Procedures and
Documentation for Agricultural Produce Exports
APEDA Restructuring of APEDA in order to Confirm
to the Proposed APEDA Amendment Bill 2007
APEDA Study on Dwell Time of Agricultural Produce
and Meat Products at Delhis IGI Airport and ICD,
Dadri
APEDA Advisors on Fast Track Development of AEZs
through PPP in India
Government of Uttaranchal Floriculture Project on
PPP Basis
Ministry of Agriculture (World Bank Project) Role
of Centre and State Systems in Agriculture under
NAIP
Cane Bamboo Technology Centre Market
Assessment, Channel Study and Mapping of Consumer
Preference for Select Bamboo Products in NE
UNIDO Market Study for Shortening of Supply Chain
and Enhancement of Value for the Farmers in
Vidharbha, Maharasthra
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FASAR Key Corporate Assignments
North India based Large Corporate Group Entry
Strategy for Fresh Produce Business and Securing
Backward and Forward Linkages
Leading Indian Corporate Diversification into
Organic Farming of Fruits Vegetables and Entry
into Bio fuels
Leading Indian Conglomerate Roping in a Strategic
Partner for Distribution of Fruits Vegetables
in European Markets
Leading Indian Corporate Entry into Rural
Retailing with Special Attention to Agri Inputs

Setting up the first state of the art
Integrated Agro- Food Park in the Country in
Andhra Pradesh
Leading Food Ingredients Player Formulating
India Strategy
Leading Indian Seed Company Raising Growth
Capital for Fresh Produce and Retail Business
Leading Shipping Conglomerate Business Potential
for Gamma Irradiation Application in Food
Industry in India
South India based Project Developer Implementation
of Integrated Agro Food Parks in Andhra Pradesh,
Tamilnadu, Karnataka, Kerala, Pondicherry and
Maharashtra
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Integrated Agro Food Park - Concept

• Unique first of its kind integration of various
  agribusiness value chain components
• Spatial clustering of different agro-production
  chains
• Spatial combination of agro-processing and
  non-agro functions (building, industrial estate
  or region)
• Scale increase in production further enables
  industrial processing
• Application of principles of industrial ecology,
  i.e. mutual use of waste and by-products
• Clustering approach to attract leading foreign
  retail chains to anchor and plan their supply
  chain at and through the Agro Food Parks
• Township model approach to attract Indian MNCs
  and foreign food processing companies
• Tremendous scope for Rural transformation and
  rural employment generation

AGRO FOOD PARK
Clustering and Networking provides context for
sustainable innovations
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Intelligent Agrologistic Networks combining
Consolidation Centres, Agroparks and RTCs
RuralTransformation Centre
Agroproduction- and processing Park
Consolidation Centre
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Concept (contd.)
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Concept (contd.)
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Market-Oriented Food Production Chains

• Collection - Value Adding - Distribution Centres
• Increase employability
• Add quality and value
• Link farmers to retail
• Open new markets

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Market-Oriented Food Production Chains (contd.)

• Primary processing centre
• Cooling, sorting, grading, packaging and storing
• Collection from max. 50 - 100 km
• Backward chain optimisation from farm to fork
  (incl. seeds and tissues) farmers become
  preferred suppliers
• Reduce shrinkage by expanding cool chain
• Increase quality (price)
• Extend potential market

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Add Agro-production to Processing and Trade
Land-independent agriculture in Agro Food Parks
adds opportunities, mainly in new markets
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Case Study - Integrated Dairy Farms Linked to
AFP
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Strategic Partnerships
MoU with National Institute of Agricultural
Marketing (Ministry of Agriculture, GoI) For
undertaking Strategic Advisory and Consultancy

Strategic alliance with Alterra, a leading
international knowledge institution and part of
Wageningen University Research Center,
Netherlands For implementation of Integrated Agro
Food Parks
MoU with NABARD Consultancy Services (NABCONS)
For jointly carrying out Strategic Advisory
assignments in the areas of Food Agribusiness,
Agri Infrastructure, etc.
Strategic Alliance with Agriculture Insurance
Corporation of India (AIC) For co-developing
insurance products suitable for the farming
community across India
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Conceptualization to Implementation

• Dedicated state level initiative to enable
  project development
• Public Private Finance Initiative (PPFI)
• Work with state governments to accelerate
  implementation of pre-approved projects
• YES BANK will incur initial developmental
  expenses
• We propose to work with external consultants for
  developing DPR, finding private sector partners,
  developing the capital structure and achieving
  financial closure
• Assists Governments to analyse and develop a
  number of projects without incurring costs on
  initial project development
• YES BANK will recover costs from project success
• Bid Process Assistance is built within the
  frame-work
• Sectors PPFI will cover
• Agri-Infrastructure Projects
• Other important rural and urban infrastructure
  projects
• Water Supply and Micro Irrigation

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Thanks for your attention !