Baegan agri - Making Agriculture profitable

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ITAM - An IT enabled service for Agriculture Market

The basic idea is to act as an intelligent salesman for the farmer. Revenue model is to charge a percentage fee on every transaction that fetches the farmer a premium over what the alternatives provide. With ITAM the farmer is ensured of the best market price of the harvest

Ever since the inception of Baegan Technologies in the year 2005, we have always wanted Baegan to be a product company. The design of ITAM, we believe, is a right step, in that direction

This product has been in the making since Aug 2010. The initial plan that was developed was Business Plan A. A reality check in the ground was made and soon realized that the whole plan has to be reworked from scratch. Presently what is shown here is the Business Plan B

Some ideas have been imported from Plan A. The crux and heart of the Plan A is maintained in Plan B i.e. design a system based on the social structure and not the other way around + the product has to be investor friendly


 orathur
Operational Strategy & Features

Plan is to implement the product without IT first (with a system of a network of people)

IT will be added as a value add based on revenue of the product
This approach minimizes the initial capital required, hence the risk

ITAM is designed for rural customers - A market that is untapped
The plan is to cover Tamilnadu first and then progressively India


 sugarcane
Current Market players

Current scenarios in which farmer is selling his produce is through

Market Committee – It is an organization that gets license from the Government and cover 60% of the districts of Tamilnadu as of today

Unorganized players – Traditional players, intermediate brokers who buy from the farmer and sell to town wholesale retailers

 
ITAM Advantages

Our free market approach has the following advantages over current players

1. Farmer sets the price for his produce rather than the Market Committee or the intermediate brokers

2. Current method of exchanging produce is that farmer brings his produce on any arbitrary day of the month and sells his produce for whatever the rate fixed by market committee that day. If the price is unsatisfactory, he can sell his produce the next day by storing in the storage facility, for a price Indian Rupee X for each bag of his produce – which in turn eats into the selling price of the farmers produce and hence profits

Our method is to have ... (Blocked for IP reason)
3. Our buyers ... (Blocked for IP reason)
4. Our system ... (Blocked for IP reason)
5. Advertising ... (Blocked for IP reason)


paruppu
Financial Summary

While the Revenue, Expenditure, Net Investment/Profit table is blocked here, the summary is given below -

Break-even - End of year 6
ROI - End of year 10

(NOT INCLUDING THE STOCKS! Number purely from profit)
Net Investment required -  INR 87,13,530 over 1st 5 years
Net Profit -  INR 102,69,870 at end of year 10

 

 Gopichettypalayampaddy
More Information

Please use the investor contact form in the investor page to know more about the product and the financial feasibility. Alternately you could use any of the telephone numbers in the contact us page (invariably quick method)