BUSINESS PROPOSAL

FOR

“LINKING TECHNOLOGY WITH FARMING”

EMPOWERING RURAL INDIA

In Partial Fulfilment of course on Advanced Communication Analysis

Submitted to
Prof. Anita T Laal
Faculty, Business Communications
FORE School of Management

Submitted By
Nikhil Kashive
IMG 10 (Section D)
10325

i
 LETTER OF TRANSMITTAL

TO: Prof. Anita T. Lal

FROM: Nikhil Kashive
Student, Fore School of Management

SUBJECT: Business Proposal ‘Linking Technology with Farming – Empowering Rural India.

As a part of the course of Advanced Communication and Analysis, I am submitting the attached
Business Proposal entitled ‘Linking Technology with Farming – Empowering Rural India’.

Through this report, we propose that how automation and technological advancements can
change the dairy industry to make it more organized and provide monetary benefits to the
farmers.

Hope this report is useful and the recommendations will be gladly accepted.

Nikhil Kashive
IMG 10 (Section D)
10325

ii
 EXECUTIVE SUMMARY

The Dairy Cooperative Society, as of today has a footprint that spreads over 346 districts of India
and covers around 128799 village level societies. This cooperative society is mutually owned
by13.4 million farmers of which 3.7 million have been women. Initiated in Gujrat, Amul Dairy,
the cooperative movement has now been replicated in 70,000 villages in India across 200
districts.

Facing a strong challenge from the largely organized dairy sector of the developed world, the
Indian dairy sector stands at point where the need to revamp production and distribution
techniques is highly prevalent. Such a change in the entire industry would require an extensive
education program that would touch millions of farmers and dairy workers.

This proposal demonstrates that basic computer knowledge among the rural uneducated farmers
through kiosks created for the dairy sector can go a long way in improving the productivity of
the farmers by providing them with information on the new age practices of dairy farming.

The dairy sector is already using the help of technology in 2500 rural locations. These locations
have shown a considerable increase in the productivity of the farmers.

The entire process, from the time the farmers deposit their produce to the point of payment for
the milk, is automated. The process includes different tasks such as sampling, weighing or
calculating the amount to be paid to the farmers. And all these jobs have dedicated manpower.

The E-Governance Centre of Indian Institute of Management, Ahmedabad, has developed an

application, which is an extension of the existing technology and will replace the current
technology at the milk collection centres, with Dairy Information System Kiosk (DISK). It
basically has two components – one, an enhanced database and reporting running at the society
level. Second, connectivity to a dairy portal serving information al needs of all the members and
staff at various levels in the district cooperative structure.

iii
 TABLE OF CONTENTS

INTRODUCTION............................................................................................... I

BACKGROUND ................................................................................................II
REQUIREMENTS...............................................................................................8
PROPOSAL ......................................................................................................... 9

PROCEDURE ...................................................................................................11

BUDGET AND TEAM REQUIREMENTS ...................................................12

CONCLUSION: ....................................................Error! Bookmark not defined.

APPENDIX ............................................................Error! Bookmark not defined.

REFERENCES....................................................................................................Error
! Bookmark not defined.

iv
Introduction
Milk being on e of the main sources of calcium and protien for a large number of Indians, mainly
vegetarians, India at a time was dependent on this source of nutrtion through imports. The
scenario however changed in 1999, when India became the largest producer of milk mainly due
to the efforts of the cooperative movement initiated by National Dairy Development Board
(NDDB). This movement started with the setting up of Amul Dairy in Gujrat and many other
such companies in various parts of the country. The movement picked up very fast and is now
there in over 70,000 villages spread over 200 districts across India.

To give an idea about the importance of milk production inthe country, it provides a livelihood to
millions of Indain farmers and acts as an additional source of income to a lot of rural families. It
also plays a very prominent role in providing means for women to take part in the economic
activity of the country in the rural areas, making them independent and business smart.

Of the 70,000 villages in the country, only 2500 currently use IT in their processing o milk.
These processes include processing, sampling, weighing, calculating the amount to be paid to the
farmers etc. An approximate of 5,00,000 people are daily exposed to the benefits of IT in milk
collection and processing. The E-Governance centres set up by IIM-A help the milk societies
keep a track of the basic details of breed, history of disease (if any), inoculation and artificial
insemination .

Considering the large CSR budget possessed by the company, this business proposal suggests
that a cooperative movement in milk be implemented in various districts in the state of Madhya
Pradesh. This business proposal is for the improvement of the Dairy Information System Kiosks
in various districts of Madhya Pradesh which have alreay been touched by the power and
telecom industries.

An advancement of such a magnitude requires broad instructive projects, which can be viably
conveyed by means of country web booths, which as of now uses 2500 PCs in provincial areas
for handling milk purchasing/offering exchanges in a straightforward way and uncovered
5,00,000 individuals every day with the advent of IT. Madhya Pradesh has a total of 7,376
Cooperative Dairy Societies, compared to 7,385 in Punjab with 1/3 the area.

Problem Statement
To make the Indian Dairy Industry competent and at par with the organized dairy sector of the
developed countries.

Purpose
The daily milk procureent of India at this point is 1.3 million litres. The idea is to double this
number in the next 6 years. In order to achieve this feat, an extensive educational program will
be required. One that is able to touch millions of farmers and dairy workers at the grass root

v
level. The rural Internet kiosks thathave been created for the dairy sector play a vital role in
helping educate farmers and help them adopt practices that improve the yield of milk.

Scope
Mandsaur district of Ujjain division, with an area of 9,791 km2 , has a total of 162 villages under
it. Out of the total CSR budget of 13.17 Cr, a total of approximately 2 Cr can be utilized for the
development of villages under the “Empowering Rural India” Initiative as a pilot project in
selected villages with high yield capacity.

Problems and Challenges

Following are the challenges we are anticipating that we may be faced with.

1. Poor Internet penetration in the rural sector. Internet still has a very low foorprint in the
rural India with major concentration of services being present mainly in the urban cities.

2. Though Mandsaur has a decent literacy rate of 72.75%, language will pose as a barrier as
the farmers might understand only the local language which is Hindi. So the system will
need to be developed keeping both languages, English and Hindi in mind.

3. As it happens, any new change is first opposed invariably. This opposition is expeccted
even n our initiative as we would be disposing a lot of middle men, who have a lot of
influence over the poor uneducated farmers.

Background
India happens to be the world’s highest milk producer with contributing about 15% of the global
milk production. Dairy setor also happens to provide livlihood for millions of farmers and act as
an addition al source of income for a lot of families. Livestock activities, of which dairy farming
is a major activity, employs close to 8.5 lakh workers in the country.

These technological advancements have been able to interoduce a more sophisticated method of
milk collection and a faster method of payment to the farmers, based on quality and quantity of
milk delivered. The quality and quantity are both digitally checked and hence are error free,
thereby giving the farmers what they deserve without any kind of discrepencies.

Motivated by the tremendous opportunity, E-Governance Centre fo IIM-A developed a system

known as the Dairy Information Services Kiosk (DISK) and offer an extensive knowledge and
service delivery mechanism through a Dairy Portal.

The DISK software provides many services, some of them are delivery of information related to
dairying, including best practices in breeding and rearing milch cattle, scheduling of government
and other private sector agency services, and collecting feedback on the quality of service
provided to the catchment area, Internet Banking Services and Automated Teller Machines
(ATMs), which will enable the milk societies to credit payments directly to sellers' bank

vi
accounts and a means of communicating with farmers via the automatic printing process of daily
payment slips.

Budget
Considering 10 villages as a pilot projet

1. The Framework setup would require $2000 (Rs 1,30,000) per kiosk. Total = Rs
13,00,000.

2. Each kiosk will need manpower of 5 individuals at the setup, with a salary of Rs 20,000
per worker, and 10 kiosks, Total = Rs 10,00,000

3. Other Miscellenious expenditure per Kiosk can be assumed at Rs 50,000 per kiosk, Total
= Rs 5,00,000

4. Hence, the total beginning expenditure per Kiosk can be calculated as Rs 2,80,000

5. The milk vending system will cost an approximation of Rs 1,00,000.

On the above estimations, the total Project Cost per Kiosk per year will include the following
components.

1. Rent: (@Rs 10,000 per month) X 12 months = Rs 1,20,000

2. Salaries: (@Rs 20,000 per month per worker) X 5 Workers X 12 months = Rs 12,00,000

3. Milk collection and testing machine: @Rs 50,000

4. Computer System and Database: @Rs 50,000

5. Logistics Cost: @Rs 3,50,000 per year

6. Total Recurring Expenditure per Kiosk: Rs 17,70,000

7. Total Recurring Expenditure for 10 Kiosks: Rs 1,77,00,000

8. Total Initial Expenditure per Kiosk: Rs 2,31,000

9. Total Initial Expenditure for 10 Kiosks: Rs 23,10,000

Total Expenditure for first year: Rs 2,00,10,000

Total Expenditure 2nd Year onwards: 1,77,00,000

vii
References
1. http://www.indiadairy.com/

2. Dairy Information Services Kiosk and Dairy Portal,Prof. T.P. Rama Rao, Centre for Electronic
Governance, Indian Institute of Management, Ahmedabad

www.iimahd.ernet.in/egov/documents/disk-and-dairy-portal.pfd

3. http://dairyknowledge.in/

4. https://villageinfo.in/madhya-pradesh/mandsaur/mandsaur.html

viii