“SUPPLY CHAIN MANAGEMENT OF DEHAAT"

SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS

OF THE POST GRADUATE DIPLOMA IN MANAGEMENT

CHANDRAGUPT INSTITUTE OF MANAGEMENT PATNA
BY
ADARSH KUMAR MISHRA
25 JULY 2019

CHANDRAGUPT INSTITUTE OF MANAGEMENT PATNA

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 SYNOPSIS

It was really a great experience for me that I got during my summer internship project (SIP). I

was very excited to work in the sector like this, because before that I have no experience in this

area so I wanted to get something new, which will diversify my knowledge that I have until

now. The exposure that I got during the tenure of two months was superb.

DeHaat is a sub-brand of GAPL (GreenAgrevolution Pvt. Ltd.) which is a Patna based startup,

established by the group of IITians and IIMs, which work for the betterment of farmers by

increasing their output price and decreasing their input cost. As there are too many

intermediaries between farmers and market, the main objective of DeHaat is to eliminate the

intermediaries so that farmers get benefit directly.

The dimensions in which GAPL operate are-

1. Agri – Input

2. Crop Advisory

3. Agri – Output

The business strategy of DeHaat is reflect in its slogan that is “Seed to Market”

The `GAPL`s strategy is to give farmers proper crop Advisory, providing them input at lower

cost and lastly giving them a market and warehousing facility so that they can sell and stock

their yield.

Our internship started on 01/04/2019 and ended on 31/05/2019. During the first week of the

internship, we have been provided enough knowledge about the company’s business model and

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 how things work in the agriculture sector, in addition to a session on how GAPL helps in

bringing change in the way of farming.

We have also been provided training related to the role that we are going to perform in the

subsequent two months.

In addition, we all interns visited Vaishali Node to know how things are really working. In

Vaishali we got knowledge regarding how DeHaat center is connected to the Node, Actually

one Node gives support system to at most 30-35 DeHaat centers.

At the end of Training at GAPL Patna, we all interns were clear about our roles and

responsibilities. The role that was being assigned to me is to analyze how supply chain

management in GAPL is working, and the location that was assigned to me was Purnea.. After

the completion of one week training in Patna, I shifted to the assigned location (Purnea).

The main chapter of SIP started in Purnea where my work was to:-

1. Analyze how Procurement of maize is being done

2. Prepare the database of farmers/traders selling Foxnut AND people who are interested in

warehouse receipt finance

In Purnea, there are three warehouses where the procurement of maize is being done, the name

and the capacity of these warehouses is-

1. Nidhi warehouses, capacity 6000 tons

2. Agro Harvest, capacity 6000 tons

3. Geeta Devi Warehouse, Capacity 3000 tons

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 For quality and maintenance each warehouse operated by a company like Arya, NCML etc.,

these companies ensure that proper quality of maize is unloaded also these companies engaged

in the maintenance of maize, which is stacked in warehouses. The Gulabbagh Mandi in Purnea

is Asia’s largest maize market.

This year company started new facility for those who wish to stock their yield, but due the

unavailability of space they can not do it, and they have to sell their yield, so now they can

stock their yield in warehouse with very minimum cost at the rate of 12 Rs per quintal with two

months of locking period and up to 6 month they can take the facility of warehousing.

After interacting with farmers it was clear that no one is going to warehouse their yield because

this year's maize price is 2 times of the price of the last year so everyone want to sell their yield.

The supply chain management in Dehat is working as follows:

1. Procurement

2. Warehousing

3. Selling

My industry mentor Mr. Abhishek Dokania asked me to visit the area where procurement of maize

is going on and see how everything is being handled. As our internship was started in the month of

April but the Harvesting of maize is generally done from end April and goes till mid-July.

Therefore, in the month of April hardly any procurement was done.

One thing that I observed there was the process of procurement of maize, which is done at the 3rd

week of April, this maize is going to be delivered to Patna, and the quantity for the same was 25

tons at the rate of 19.5 Rs. per kg. Earlier I thought that procurement of maize was simple, any

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farmer or trader who wish to sell can sell, but after working for two months in GAPL all my earlier

belief regarding this was replaced by a new one, like the process of procurement of maize which is

consist of a sequence such as:

1. The company got orders

2. Analysis of Quantity

3. Contacting Farmers/Traders

4. Arrangement of Transportations

5. Weighing of Empty Truck/Trolley

6. Quality testing of maize

7. Stacking of Packet on the van

8. Weighing of loaded Truck

9. Vendor Registrations

10. Payment

After one month in Purnea I have been assigned a different task from the CEO of DeHaat, to get

details of farmers/Traders who involved in the Purchase and Sale of Foxnuts in Large Scale.

As Bihar produces 90-95% of world demand of foxnut, and in Bihar, these are the major

production area of foxnuts

1. Madhubani

2. Saharsha

3. Darbhanga

4. Purnea

5. Katihar

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 6. Araria

Also the Malda region of West Bengal produces one of the best qualities of foxnut. My work was

to first analyze the area and after that get details of Traders/Farmers who wish to do business

with us and if not convince them for the same. This year company is going to do a business of

1500 tons of foxnuts. I was also asked to recommend the company that where, should company

open collection center for foxnuts and why.

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 Declaration

I hereby declare that the summer internship project entitled “SUPPLY CHAIN
MANAGEMNT OF DEHAAT,” submitted to Chandragupt Institute of
Management, Patna in partial fulfillment of the requirements for the award of Post
Graduate Diploma in Management is my original work and has been prepared by me
under the general supervision of my Industry Mentor(s) ABHISHEK DOKANIA
and Faculty Supervisor PROF. DR. PRASAD SUNDARARAJAN. I have not
submitted the work earlier, either to any other Institute or University for the award
of any diploma, degree or certificate. I have followed the CIMP guidelines to prepare
the report. I have also given due credit to the sources of data, theoretical analysis,
text and other materials by citing them in the text of the report and producing the
details in the reference section.

Place: Patna (Signature of the Student)

Date: 25/07/2019 ADARSH KUMAR MISHRA

Roll no: 110005

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 Certificate by Faculty Guide

This is to certify that the work incorporated in this Summer Internship Project
entitled “SUPPLY CHAIN MANAGEMENT OF DEHAAT,” by Mr. ADARSH
KUMAR MISHRA bearing Roll no 110005, comprises the results of his/her
independent and original investigations carried out under my supervision and
guidance in partial fulfillment of the requirements for the award of Post Graduate
Diploma in Management. To the best of my knowledge, the work has not been
submitted earlier, either to any other Institute or to University for the award of any
diploma, degree or certificate.

Place: Patna (Signature of the Faculty Guide)

Date: 25/07/2019 (Dr. Prasad Sundararajan)

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 Certificate by Industry Mentor

This is to certify that Mr. ADARSH KUMAR MISHRA bearing Roll no 110005,
a student of the Chandragupt Institute of Management, Patna, has
successfully completed Summer Internship Project titled “SUPPLY CHAIN
MANAGEMENT OF DEHAAT.” Under my supervision and guidance in partial
fulfillment of the requirements for the award of Post Graduate Diploma in
Management for a period from 01-04-2019 to 31-05-2019.The work has not been
submitted to any other institution or University for the award of any degree/diploma
or certificate to the best of my knowledge.

Place: (Signature of the Industry Mentor)

Date:... /...... /……… (MR. ABHISHEK DOKANIA)

(AVP OUTPUT)

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 Acknowledgement

First, I would like to thank Team DeHaatTM, Shashank kumar (CEO and founder),
Amrendra Singh (AVP Input) and my Industry Mentor Mr. Abhishek Dokania
(AVP Agri Output) for giving me an opportunity to do my Summer Internship
Project in this organization. For me it was a wonderful experience to be in DeHaat
and Analyze the Agri-Output sector in the Area of Purnea District. I express my
heartiest gratitude to my Guide Dr. Prasad Sundararajan (professor at
Chandragupt institute of management, Patna), who guided the project and gave a
valuable suggestion. He also motivated me to do my project in the best manner.

I would like to express my heartiest appreciation and gratitude to Dr. V. Mukunda

Das, Director, Chandragupt Institute of Management, Patna, who kindly extended
his support in the completion of the work.

I would like to express my heartiest appreciations and gratitude to all faculty

members of Chandragupt Institute of Management, Patna, Who encouraged me and
gave their valuable direction throughout the project work.

Special thanks goes to my parents who supported me enough during the two months
of SIP, which helped to stay focused on my work.

(Signature of the student)

Adarsh kumar Mishra

Roll No- 110005

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 Table of Contents

Chapter Page Number

 Synopsis 2-6
 Declaration 7
 Certificate by Faculty Guide 8
 Certificate by Industry Mentor 9
 Acknowledgement 10
 Introduction 12-13
 Overview of the Study 14-15
 Relevance of Study 15-16
 About the Organizations 17-19
 Research Methodology 20-21
 Result Analysis And Discussion
• For Warehousing Receipt Finance 22-25
• For the Procurement of Foxnut 26-28
 Recommendation
• For procurement of Maize 29
• For Procurement of Foxnut 29-30
 Limitations of the Study 31
 Conclusions 32
 Reference 33
 Questionnaire 34

ↈↈↈↈ

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 Introduction

India is among top three global producers of many crops, including wheat, rice, pulses and

maize. In India maize is grown throughout the year, it is predominantly a kharif crop with 85%

of the area under cultivation in the session. In India, maize is third most important cereal crops

after wheat and rice. It accounts for around 10% of the total food production in the country. In

addition to staple food for a human being and quality food for animal maize serves as a basic

raw material as an ingredient in thousands of industrial products that include starch, oil, protein,

Alcoholic beverages, food sweeteners, pharmaceuticals, cosmetic etc.

In India, maize is cultivated mainly in these following areas:-

Karnataka, MP, Bihar, Rajasthan, Tamilnadu and Telangana. It also exports to countries like

Nepal, Bangladesh, Vietnam, and Pakistan.

The productions of maize are estimated at 25800 (“000MT) in 2017-18

Being one of the best crops that has so many uses and demand still farmers are not getting what

they deserve. It happens probably because of lots of intermediaries between farmers and market.

One more reason that also ruins the maize entirely by unsystematic rain in the areas.

This report is a short description of my two months of internship, which is compulsory for our

academic requirements of Chandragupt Institute of Management Patna. This project is

completed in an Agritech startup named that in 2019. The main objective of the project was to

Analyze the supply chain management of DeHaat mainly procurement of maize and foxnut.

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Through this project, I have understood many aspects of Agriculture, Agrioutput management

and Interacted with many farmers to get insights, which help me in getting the details of

problems that farmers are facing.

This internship report contains the details of the work that I have contributed in two months;

during the period, I have visited Areas like Katihar, Purnea, and Malda districts of West Bengal.

The last part of internship contains analysis of findings and suggestions part.

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 Overview of the study

TOPIC

The topic assigned for the internship:-

“Analysis of supply chain management of DeHaat”.

It was a challenge for us to work practically after being trained in the Patna office

because prior to this I do not have exposure of this. However, I managed at the

starting of SIP to work and after working for more than one week I start enjoying

my internship by interacting with farmers as well as senior officials of the

company. One challenge that I have faced during the 2 n d and 3 rd week of April was

that there is no procurement of maize happened. Because maize are generally,

ready to be cultivated at the last week of April. Therefore, during that period I

have interacted with farmers to get details on how supply chain management of

that really works. This was all about the procurement of maize that is the 2 nd phase

of my internship.

After that in the 3rd phase of internship, in my work was to prepare a database of farmers/

Traders involve in the procurement process of foxnut.

The main challenges that I have faced in the third phase of the internship was that visiting

unknown location and asking people about traders of foxnut most of the people replied

differently, but there is some gentleman in the villages through which I have got details of

traders. As this sector totally new for us, so it was so challenging to work in output divisions or

we can say supply chain management of the output of DeHaat performs this following task:-

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1. Purchasing of maize

2. Stacking of maize

3. Purchasing of foxnut

4. Grading of foxnut

5. Selling

Relevance of the study

The project that I was part of holds huge importance. Bihar produces 95% of the world’s

demand of foxnut and there are some area where the main crops are foxnut but the area is not

exposed till now through this project the data that we got helps officials to penetrate that area.

The supply chain management is one of the important part of any organizations. Without proper

handling of this, no business can succeed. Therefore, through this I got an opportunity to learn

how the things actually works in organizations.

The supply chain management of output of DeHaat plays very important role, any bottleneck

into this can sue a business. Therefore, during this internship I am having direct interaction with

the process that carried out in the process of procurement of maize.

This project is also important relevant in the manner that will allow us to analyze the process

in a way, which will help company in making, any further decisions. The responses that we got

helps Company to expand its reach.

This project is also important in a way because I have make a client through which the business

of 45 crore will be done as company this year planning to purchase 1500 tons of foxnuts. This

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 is very important to analyze traders before making orders and for that detail of traders is

important and that is why this work is assign to us so that I can prepare a database.

In addition, through this project company wants to enter into new field that is credit facility.

This scheme is important for those who do not want to sell their yield but need cash so for those

there is facility that the can avail warehouse credit facility. Therefore, through this study I can

help company in making decision regarding who wish to stock their yield.

The objective of the study is to:

 Get familiar with the purchasing or procurement process of maize and foxnut

 Learn how supply chain management of Dehaat really works

 To get details of farmers or traders through which company can purchase foxnut of up to 1500

ton

 To suggest company that where should it open its collection center for foxnut

 To get details of the farmers who wish to avail warehouse facility

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 About the Organization

DeHaat, an online marketplace for farm products and services, owned by Green AgRevolution

Pvt. Ltd, DeHaat is a technology-based platform offering end-to-end agricultural services to

farmers, including distribution of high-quality Agri inputs, customized farm advisors, and

access to financial services, and market linkages for selling their produce.

Founded by Shashank Kumar, an alumnus of the Indian Institute of Technology Delhi, on 2008,

the startup currently works with about 56,000 farmers largely in the north and eastern India—

including Bihar, Uttar Pradesh and Odisha.

The total number of Dehaat centers is 162 and the number of nodes is nine all over India.

DeHaat expects to hit ₹45 crore revenue in FY19, up from ₹21 crore in FY18, with positive

earnings before interest, tax, depreciation and amortization. With the current round, DeHaat is

targeting growth of three-four times over the next 18-24 months.

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 Core team:

Person Position

Shashank Kumar Founder & CEO

Amrendra Singh Co-founder & VP, Farmers’ Services

Shyam Sundar COO

Aditya Khanna CTO

Abhishek Dokania AVP, output

A recent achievement of company:

 DeHaat has raised nearly $5 Million. From Omnivore, IIM Calcutta Innovation Centre and

angel investors.

 DeHaat has secured $2.84 Million (INR 20 Cr) from venture debt firm Trifecta Capital. This

debt would be drawn over the next 12 months.

 Agritech startup DeHaat, which connects farmers with Agri input suppliers and buyers for

their produce, has acquired VezaMart, a platform that builds farm management solutions for

farmers.

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 DeHaat claims to have clocked revenue of Rs 45 crore so far. It closed the last fiscal with

revenue of Rs 21 crore and was positive on the earnings before interest, tax, depreciation and

amortization (EBITDA) level.

The main function of Dehaat May be represented as follows:

DeHaat

Agri-Input AGri-Output Crop-Advisory

Seeds Procurement
Soil testing
Of maize

Fertilizer
Procurement
of Foxnuts

Pesticides

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 Research Methodology

Research Design Used

Descriptive research is used to carry out my study.

Sub Research Design Used

Survey: I have visited to all 41 farmers and traders of maize and foxnut individually.

Questionnaire: I have prepared Two questionnaires, one was to get insights of farmers on

Warehousing Receipt Financing and one was to get insights of farmers/traders involves in the

business of foxnut.

Sources of Data: Primary Data

The information that I have collected for our studies is Primary form of Data.

Like for the Procurement of Maize I have personally interacted with company’s officials

regarding Process of procurement and how supply chain management of the Works. For the

Warehousing Receipt Financing I assigned an Area where I had to interact with farmers that

whether they are interested in Warehousing Receipt Finance or not. For Foxnut Business again,

I was assigned an area where I had to interact with traders to get their insights. For all these

things, I have interacted with 41 traders/farmers of foxnut and maize individually.

Technique of sampling used in the study: Non Random Sampling Technique:

As we were given a specified area, in which I have visited to get a sample that is why the type

of sampling is nonrandom.

Sample size: 55
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Sample Unit: Responses from specified area

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 RESULT ANALYSIS AND DISCUSSION

Findings for the Warehousing Receipt Financing for Maize

Q.1 How much area are you using for the cultivation of maize?

Q.2 where you used to sell your yield?

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 The farmer we have interacted, 50% have land between 1 to 5 acres

 Only 25% have land more than 10 acres

 8. % of the farmers have not disclosed about how much land they have in which cultivation of
maize is being done.

 29.% of the farmers sell their yield to warehouse situated in that area

 54.% of the farmers sell their yield to local aggregator

 Only 17% of the farmers sell their yield to Mandi.

 This shows that in village average land holding of people is 2-5acre

 54% of the farmers sell their yield to Aggregator the reason is that the aggregator is local people
having good relation with each farmer and that is why they used to sell their yield to local

aggregator. Another reason is that flexibility they can sell any time to the aggregator

 One important reason that people selling to aggregator is that they get payment in cash, and if
sell to warehouse get payment in the account. In the village, most of the people do not want to

indulge in this practice.

 29. % of the farmers who are aware about the company’s policy of payment and all sell to the
warehouse.

 Only eight. % sell their yield to Mandi that is situated in Gulabbagh Purnea Asia’s largest maize
market the reason is that this area is far away from the respondent’s area and there will be

transportation cost and difficulties on loading and unloading that’s why they either sell to the

warehouse or to local aggregator.

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 Q.3 Do you have an open bank Account?

 100% of the farmers having an open bank account.

Q.4 Are you interested in Warehousing Receipt finance.

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 Q.5 Have you taken any loan from Bank?

 96% of the farmers responded, they are not interested in warehousing receipt financing the
reason is that this year price of maize is all time high like earlier the price of maize varies from

8 to 11 Rs. /Kg but this year the scene is different the price of maize started from 22 Rs. Per Kg

and now it is somewhere between 17-19 Rs/kg. Therefore, no one wants to take a risk storing

it in the warehouse.

 As companies charge some charges for warehousing and for the credit, the interest rate is 14%
per annum so no one wants to pay for this. Four% of farmers were interested, but when I have

briefed them about the policy then they also denied for this.

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 RESULT ANALYSIS AND DISCUSSION
For the Procurement of Foxnut

Q.1 Do you know about our Organization named DeHaat?

Q.2 How much area you are using for the cultivation of foxnut

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 68% of the traders/farmers responded that they are not aware about the company

 74% of the respondent have not disclosed that how much area is used in the cultivation of

foxnut the reason is that the majority of respondents are traders and they purchase from farmers

directly and they do not cultivate it. 26% disclosed about the land and these are the farmers.

Q.3 In which form you sell your foxnut?

 This shows that 74% sell foxnut in the form of puffed foxnut and 26% sell in the form of seeds.

This is because that 74% of the respondent are trader and 26% are farmers. Farmers sell in the

form of seeds foxnut and traders sell in the form of puffed foxnut.

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 Q.4 How much quantity we can get from you?

 When I asked about that how much quantity I can get from you than the responses that I got

from traders as well as farmers is as: 45 %, traders can supply in quantity more than 500 tons,

the whole demand of our company that is 1500 tons can be fulfilled by the 16 % of the traders.

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 Recommendations
For the procurement of maize:

 I have seen that the packet of maize contains 50 to 60 kg, which is not at par with the companies

set parameters was rejected, and on average 8 to 10 packets from each trolley of the van got

rejected, which makes farmers disappointed who travel for 50 to 60 km to sell.

So a company should start purchasing from small farmer not at market price of quality maize,

but whatever is suitable price for that.

 I have seen that company purchase only from large farmers and traders of maize, and these way

small farmers not getting benefitted, so company should start purchasing from small farmers

also.

 Most of the people I have seen, are not aware about that when company is going to start

procurement of maize even in the area where the warehouse is situated, and in that farmers sell

their yield either to local aggregator or on Mandi so companies should start advertising it at

least 20 days prior to the start of procurement of maize.

 While interacting with farmers of maize some of the farmers told me that companies have any

machine through which the maize harvesting becomes easy, so company start providing this

kind of machine to farmers on rent and this way the company can generate revenue also.

For the procurement of Foxnut:

 As I have mentioned earlier that 68 % of farmers/traders are not aware about our company. So

company should start its advertising and sales promotion so that people have ideas about our

organizations.
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 Companies purchase only puffed foxnut that can be purchased only from traders and in that

farmers not get the advantage, if possible company should start purchasing seeds directly from

farmers so that they can get what they deserve.

 Here is the recommendation for opening collection center for DeHaat.

 Company can open its collection center in Gerabari or Harda and in Sapni to collect foxnut.

For Harischandrapur company can open a collection center in Bardwari.

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 Limitations of the Study

 The procurement of maize started on last April and I assigned to analyze the procurement of

maize in 1 April so this is the limitation, that is why I have not seen so much of procurement

and warehousing.

 In the second month, that is on 1 May I have assigned two different tasks, so it was difficult to

travel different location, because for maize the area is different and for the foxnut area is

different.

 Purnea is a city where the crime rate is very high, so it restricted me to work late night in that

area.

 As most of the people are not aware about our company, so they were not responding well.

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 Conclusion

India is a country where still a majority of population live in rural areas and more than 50%

people is depends on agriculture but agriculture contributes only 16 to 18% to nations GDP.

Dehaat is an initiative with philosophy “Seeds to Market” which states that its primary focus is

to provide quality input to farmers as well as providing crop advisory services and providing

farmers a market where they can produce and sell their yield at an effective price. In this

summer internship program, I have seen the working model of the firm, which is effective in

its own way, and its working model consist of procurement of maize and foxnut from farmers,

warehousing it and selling it to the companies of different domains like ITC, Britannia, Godrej,

etc.

My contribution during the internship program consisted of learning the process of procurement

of maize by visiting different places and gathering requisite information regarding the yield of

maize from different farmers. I also collected information about traders and farmers involved

in the business of producing foxnut. While visiting different places and interacting with traders

and farmers, I get to know the whole process of buying and selling of maize and foxnut in bulks

and how the supply chain plays a vital role in the procurement process from harvesting to selling

to end users.

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 REFERENCE

 https://www.livemint.com/companies/news/agritech-startup-dehaat-raises-30-cr-

led-by-omnivore-1552844596591.html

 http://www.newssummedup.com/summary/Agritech-startup-DeHaat-raises-

%E2%82%B9-30-cr-led-by-Omnivore-6j7bo3

 https://yourstory.com/2019/05/agritech-startup-dehaat-acquihire-vezamart

 https://www.financialexpress.com/budget/india-economic-survey-2018-for-farmers-

agriculture-gdp-msp/1034266/

33
 Questionnaire

Warehousing Receipt Financing for Maize

Name:-

Address:-

Mobile Number:-

Q.1 How much area are you using for the cultivation of maize?

Q.2 where you used to sell your yield?

A) Warehouse B) Local aggregator C) Mandi

Q.3 Do you have an open bank Account?

A) Yes B) No

Q.4 Are you interested in Warehousing Receipt finance.

A) Yes B) No

Q.5 Have you taken any loan from Bank.

A) Yes B) No

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For the Procurement of Foxnut
Name:-
Address:-
Mobile Number:-

Q.1 Do you know about our Organization named DeHaat.

A) Yes B) No

Q.2 How much area you are using for the cultivation of foxnut

Q.3 In which form you sell your foxnut.

A) Seeds B) Puffed

Q.4 How much quantity we can get from you?

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