2

Richer, urbanized Population by 2050; increasing need to Increased efficiency is driving global agriculture growth globally
produce more food but input led growth prominent in India
Genetic advancements,
Green Advanced Data
improved machinery and
9.2 Bn 65% Revolution systems, IT
efficient water use technologies
Population Urbanization
Technology Evolution
1970 2000
70% Increase in
Middle demand Sources of Growth in Global Agriculture Output
Class
China
6.0% 5.2% 6.0%
4.9%
5.0% 4.5% 5.0%
3.6%
4.0%
3.3% Total
4.0% Factor Production
3.0% (TFP)
70% 3.0% :Gross amount of
2x increase 2.0% crop and livestock
increase in 2.0%
in protein 1.0% outputs per inputs (labor,
food 1.0%
demand 0.0% capital and materials)
production
-1.0% 0.0%
1961-1970 1971-1980 1981-1990 1991-2000 2001-12 Inputs/Land : Gross
Resource India amount of fertilizer,
5.0% 5.0%
4% machinery, feed, labor
constraint 4.0% 3% 4.0%
3% 3%
and other inputs per
3.0% 3.0%
hectare of agricultural
1.68%
2% 2.0% land
2.0%
89% decrease in 1.0% 1.0%
freshwater production
requirement 0.0% 0.0%
growth 1961-1970 1971-1980 1981-1990 1991-2000 2001-12

Irrig New land Input/Area TFP Output 3

Source: GAP Report 2014, FAO Source: USDA ERS
 Farm Inputs Farming Processing Distribution Retail

Smart Water
Hardware Technology Food Safety & Supply Chain
Traceability Technology

Drones & Decision Indoor

Food Waste
Robotics Support Tech Agriculture E-commerce
Technology Technology

Drones: lifting
productivity by 5% Fresh produce monitoring can lift quality and reduce waste: Fruit and
above business-as-usual vegetable losses and waste can be reduced by 25%-40%

Poultry production and processing gets connected: lifting productivity by

Phenomics are
speeding up innovation:
enabling two- to six-fold
productivity gains
5% above business-as-usual
Smart irrigation helps
use water efficiently,
reducing water use by
as much as 80%

The data cooperative is coming: Harnessing big Big data helps food retailers create customer
data can create some USD 10 billion of value at value: Retailers are looking to recover margins
crop farms worldwide, each year of at least 1%
Source: Rabo Bank, Building a smarter food system, Oct 2015 Report 4
Farm Inputs Farming Processing Distribution Retail
Tech for Drones Robotics Software & Analytics Food Warehousing
Input Substitutes & Logistics Farm 2
Suppliers Consumer

Food Farmer 2 Retail

Safety
Satellite & Imagery Smart Equipment

Inventory Food
Manageme Intelligence
Direct 2
nt
Farmer
Water Tech Livestock
Indoor
Agriculture

Waste Tech
Weather

Indian >100 $ M Funding 5

Need to feed population 1.62 Bn by 2025 Mobile Phone and Internet Penetration

Rural Internet Users (Mn)

Changing demographics, Annual Rural internet users as % of
325 50%
household consumption to become 3x total internet users by 2020
by 2030

Share of middle class to become 46% 134 2.5

by 2030, increasing working women Digital villages by 2018
lakh

Universal Access to Mobile

Increasing urbanisation, lifestyle Connectivity by 2018
changes 2015 2020
Source: Livemint, Bain & Google Insight Report 2016, IAMAI

Increase in Institutional Credit to Farming Farmer Producer Organisations

Growth of organised retail, private
label penetration, contract farming Agricultural Credit Target ( INR '000 cr) Number of FPO
900 2000 FPO brings
together
CAGR +18.2%
small &
475 marginal
280 783 farmers and
functions as
Increasing expenditure on food a company
products 2009 2012 2016
2016 2017(P)

Source: Budget 2014-15, SFAC India

Source: RBI, Grant Thornton Micro Irrigation Report, ICICI direct Farm Mechanization Report, Budget 2016 6
 Investment in Agri-Tech (USD Billion) Financing in 2015 (USD Million) These 4 sectors
got 47.5% of
673
funding
Monsanto • John Dree acquires
acquired The Precision Planting 383 Decision support
Climate • Syngenta Acquires 295 tech. got
Corporation AgConnections maximum number
2.963
for 1 $ BN • Shenyang Yuanda of deals
Enterprise Group 26
invests 180 $MN in Bioenergy, Bio
AutoAgronom Irrigation & water Drones & Decision Support Smart Equipment Chemicals, Soil &
1.986 Tech Robotics Tech & Hardware
• Vista Equity Partners Crop Tech are
acquires AgData other major sectors
• Jain Irrigation system
acquires Pure Sense Major Investors in Agri-Tech
Invested in Indian Start-ups

0.9

0.5 0.5
0.4

Such acquisitions by big

2010 2011 2012 2013 2014 2015 agribusiness companies
2010-2013: Inclusive of Food E-commerce, hence
boost investor sentiments
the non food e-commerce must be much lower as these provide a
potential channel of exit

In India, Mahindra is launching farming equipment rental

services, ITC has e-Choupal, Monsanto and TCS provide
agri-info services to farmers

7
Source: AgFunder, CB Insights, Monsanto
8
 Technology Roadmap 2015-2020 Global Precision Farming Market Size (USD Billion) & Growth

Smartphones and sensors to CAGR +12% 5.0

dominate precision agriculture 4.7
in near term 4.3
3.9
AR vision of 3.4
Challenges farms 2.8 0.8 0.9
0.7
2.5 0.6
Universal 0.4
0.3
High initial investment data 0.2 0.8 0.9 1.0 1.1
0.6 0.7
Humanoid 0.4
Awareness
Secure data Robots
Data integration
access 1.3 1.5 1.6 1.7 1.8 1.8 1.8
Erroneous Output
2014 2015 2016 2017 2018 2019 2020
UAV
North America Europe Asia South America Rest of world

Mass data Cognitive Robotics & Automation: Autonomous operations enabled by

Multi-functional
imaging robots automated technology & high precision positioning systems
analytical
Wireless drone
sensors
Connected Imagery & sensors: Data collected via remote sensing, sensors
Smartphone farms and geo mapping
connectivity Automated
tractors
Digitization & Big Data Analysis: Data is analysed for improved
predictions & performance optimization
Short-Term (2015-16) Mid-Term (2017-20) Long Term (>2020)

Bioengineering: Selection of seeds & chemicals based on external

conditions and evolution of seeds
9
Source: Roland Berger Business Opportunities in Precision Farming, Frost & Sullivan
1

Global Landscape dominated by USA & Israel Global Opportunity Application

Increase in crop yield : AutoAgronom claims Up to
90% farmers don’t use anything to optimize irrigation, • 70% water used by
30% increase in crop yield,
huge potential of the market agriculture
Reduction in water & Fertilizer usage: AutoAgronom
AutoAgronom claims 50% less water and 70% fewer fertilizers.
• 2/3 of groundwater used
71.5 $MN India : Labor and cost saving, no need to operate
200 $MN in agriculture
at odd hours
• $ 2.2 Billion loss due to
California Drought Business Models

Opportunity In India Monitoring Mobile App Mobile & GSM

by sensors based controller
Irrigation Efficiency solutions
75% provided by
Analysis Automation most companies
60%
55% in India
10 $MN
30%
Revenue Models
$ 10K
10.7 $MN
Indian Company, Jain Irrigation Ground water Surface water
systems acquired Pure Sense, a Source: Tribune India

smart irrigation company in Current Potential Equipment Analytics Package

10 $MN Additional
2015 • 90% Freshwater utilized in Rental or Subscription (Per services
agriculture Sale* Acre, per Sensor) subscription
(INR 16000-28,000 per equipment)* in India
• 68% India drought prone
Source: CB Insights, Company Websites, Time.com, Keepeek.com, Agweb.com,
• Support from Govt. Economic Times, Ministry of Water Resources, NABARD Annual Report 2014-15 10
2

Global Landscape Global Opportunity Application

• Application of crop protection chemicals: DJI has
AgJunction acquired Agri drones will have 80% Ag Robotics Market developed a crop spraying drone that is 40x
Novariant, which provides share in UAV market (USD Billion) efficient than manual spraying
precise location & To be • Crop Management & Analysis: Capture
machine control solutions 52 $MN 6 dominated
3 multispectral information of fields to analyze for
Listed in by driverless problems
Toronto Stock 105 $MN tractors • Performing farm operations with precision
Exchange 2015 2020
Tractica Report

Business Models
Opportunity In India
Supporting Mobile
Agriculture Workforce in India Equipment Control

270 56.70% 58.00%

260 53.30% 56.00% Robots Analytics
Agriculture
54.00%
250 Manufacturing Software
Workforce
52.00%
240 48.80% (Mn)
50.00%
70.4 $MN 230 48.00%
220 259 245 228 46.00% India: Push from Govt. Revenue Models
35.21 $MN Undisclosed % of
210 44.00%
workforce
2004-05 2009-10 2011-12 In a bid to settle
30.35 $MN FICCI Agri Report 2015
Parrot acquired Micasense, crop insurance claims, the
a company developing 10% -12% CAGR (2005-2011) in government has decided to
hardware & software costs of cultivation / hectare for purchasevunmanned
99 $MN solutions for remote sensing labor intensive crops like aircraft technology and has
sugarcane, paddy and cotton Drone as a Sale of
& analytics made necessary
service equipment
allocations in budget

Source: Company Websites, DJI, CB Insights, FICCI Agri Report 2015, Vodafone Connected Farmers 11
3.1

Global Landscape Opportunity in India

Satellite Data Big Data Smart Cereals Yield (kg/hectare) Preferred Source of information
Analytics
companies companies Equipment
7637 World Average: 3886 94%
Need of reliable Agri
5886
Information
41 $ Mn 4641

2981

10%
4% 3%

Fellow Agri-Retailers TV Radio Agri

United States China Brazil India
Source: FAO
farmers Extension
Source: RML Research Report services

Economic Impact of Precision Agriculture &

Real-Time Information per year in 2025($ BN)
4.5 $ Mn Can reach 22 million farmers Precision Agriculture 8-30
by 2025, resulting in 15 to 50%
158.1 $MN increase in yield
Undisclosed
Real time information 10-15
Companies are targeting
64.6 $MN
farmer groups or corporate
agri-businesses as it is easier to Total 18-45
convince them as compared
$MN to individual farmers
Source: CB Insights 0 10 20 30 40 50
If Precision farming expanded to 25 to 30 percent of sown area
and real time information to 90 million farmers
Source: MGI India Tech Report 2014 12
3.2

Technical Hardware Software Agronomic Data Science

Support Services

Revenue Models

($ 500/ year + $ 8.5 per acre), device

costs $749 per year
License Per
fees user/acre
subscription
($ 1.75/ acre) fees

($500/ year) (INR 50/acre

per month)

($ 3/ acre) ($ 3.95/acre)
Source: Company Websites , Farmer’s Edge 13
 4

Opportunity in India Global Companies

Yield (ton/year) per animal

119 Milch Animals in
Million India 12.1 $ 4.3 Mn $ 2.5 Mn
9.8

$ 37.4 Mn

Rank Largest Producer 3

1 of milk 1.2 1.4 Technology Employed

Source: IBEF
India Brazil China USA Israel
Source: Grant Thornton Report
Rising share organized segment in Dairy
25% Dairy
19% Management Internet of Sensors, Mobile
India as the least productivity among top milk systems Things RFID App
producing countries
Revenue
Recent Models
Deals

Acquired by Allflex in Dec 2014

2015 2025 Huge scope for disruption by technology
Acquired by Afimilk in Feb 2016
Co-operative and private dairies more open to
adoption of technology for improved $ 140 With one the highest milk yields, Israel leads tech
profitability Size of Dairy industry in 2020 disruption in dairy farming
Bn

Source: Business Line, Business Standard Source: CB Insights 14

15
 1

Opportunity in India E-commerce in China Indian Companies

Farmer’s get Smaller Share No need to travel to 3% of online penetration in farm
of the pie Mandi, savings on Dominated by
produce
transportation cost Mobile owing to
higher mobile
Online transactions of farm produce
penetration
were valued at more than 100 billion
Less Spoilage
Yuan ($16.1 billion (2014-15)
20%-25% 40%-45%

India Global Potential to overcome 750,000 sellers on Alibaba selling Services offered
demand supply agricultural produce (2014)
RML Research Paper
mismatch

>4000 ecommerce sites for farm

$ 10 Bn market size of Relevant information for products (April 2015)
input industry key players
63 Taobao county centers and 1,803 Input Listing of produce to Machine
village centers open in 17 provinces get market access
materials Rental
Farming Input Industry Size (June 2015)
Input companies
(INR Billion)*
346 370 China Companies Drivers Revenue Models
241 212
158 149 Banks • Increasing internet
penetration in rural
India
Farm Seeds Pesticides
Equipment Service Providers • ~50% penetration of Commission Pay
2014-15 2017-18 rural Telephony Per use
CRISIL Research

*Excluding Fertilisers Source: FICCI, Digit.in, Livemint, All China Tech, XinHuanet, China Govt. 16
 2.1

No consolidation of the services offered and hence inefficient supply chain Warehousing Gap

Cold-Storage Supply chain

Packaged produce in climate
control long haul
Gap of 27 million MT
Aggregation Reefer Transport Cold Storage

At pack-house, pre-conditioning, Distribution in hubs cargo

packaging, cooling, dispatch centers
30% Capacity held by small
unorganized godowns
Distribution Merchandising

Refrigerated Local Delivery Retailer to Consumer

Cold-Storage Gap 35.16

70080 Even though India is largest INR 44,000 Crore Post-harvest loss
61826 producer of fresh fruits and
second largest producer of
Requirement (#) vegetables, per capita market
99.64%
Gap % availability is low. 1.65 Registered capacity with
% WDRA
91.11%
11% Extremely fragmented industry
85.44%
where critical data about
technology used, capacity,
9131 installed or available, are either Information Asymmetry
not available or of poor quality

Pack-house Reefer Ripening Chamber Cold Storage (MMT)

Source: NCCD-CCSG Final Report

Source: WDRA 17
2.2

Business Operations Funding

Warehouse
IT Enabler
Management System

Procurement
48.7 $Mn ~48 $ Mn 40.1 $ Mn 126 $ Mn
Asset Heavy Model

Commodity Warehousing
Asset Heavy Model
Sector Size
Owned by Fairfax
Collateral Management Holdings • Cold chain market in India is to reach 10 $ Billion
by 2017
Asset Heavy Model
Analytical Service
Provides VAS like
• Warehousing,20% of the total logistics market,
Private Mandi, expected to grow at a rate of 35 to 40%
StarAgri Bazaar annually
Agri Financing Asset Light Model,
Warehouses on
Lease Investors in this Industry
Real Time Information Claims to reduce
post harvest losses
to 0.5%
Cold Storage

Custom bonded
Others

Source: Food Logistics India 2016, Company Websites, CB Insights 18

19
44% of Farm area under small land holdings Average Land Holding (Ha)

Operated Area (%)

175.6 44.22%
137.8 MN land
holdings 32.10%

23.60%

0.7 1.16
85% marginal &
US China India
small land Small & Marginal Semi medium (2-4 Medium &
holdings Out of 160 ha million area under 138 million (< 2 ha) ha) Large(4-10 ha)
holdings, 44% are less than 2 ha
Source: Nabard Rural Pulse
Source: World Bank

Rural Financial Status

1.16 ha average Rural Household Income (2013) by
farm size 26.6% bank accounts
Landholding opened under PMJDY are
Need of affordable zero-balance
solutions 41388

Challenges in 40% bank accounts saw no

movement in 2014
Expenditure 19637

10730
7348 14447
Delivering 4152 5247 10104 104 million savings account
Farm Sourcing 5401 6020 6457 7786
Credit &
insurance mechanization
0.01–0.40 0.41–1.00 1.01–2.00 2.01–4.00 4.01–10.00 10.00+
Source: Nabard Annual Report 2014-15 Source: RBI 20
 Agri-Tech Technology Outlook $ 7bn market by 2020

260
$ 7.2
Billion
1187
2015 2018 2020 2025 6x Growth
IVR/SMS
M- Remote Big data
based info Drones
commerce sensors analytics
services
5751
Mobile ERP Indigenous $ 1.2
systems IoT 64
robotics
693
478
Emerging Startups 2015 2020
E-commerce Dairy Precision Agri

Assuming 0.3 % online penetration for agriculture

in 2015 and 3% in 2020
Source: Avendus Estimates

Driving Customers Sectors Drivers

Increase production Increased rural
and inputs market internet penetration

Banks, Dairy Non Food Inputs Increased

GoI Agri-business Logistics Increase in
insurance Grains affordability of
organized nature
companies technology 21
of market
Year Founded 2010 2013 2003 2011 2012 2009 2015 2008

$ 0.6 MN Seed,
Funding Undisclosed Seed $ 5.2 MN $ 2.6 MN Series A $ 5.4 MN $ 6 MN round $ 48.7 MN
in process
Farm
Farm Cloud based Cloud based
Management Supply Chain,
Management Weather solutions, solutions,
Sector Solution, M-commerce Fruits & Agri-Logistics
Solutions, Data Solutions Internet of Internet of
Satellite Vegetables
Analytics Things things
imagery
B2B, Inventory led Asset-light
B2B, B2B, Sugar B2B, Dairy B2Farmers Farmer to
Business Model Agribusiness, B2Farmers, warehousing,
Agribusinesses Industry Farming Aquaculture Retailers
Insurance firms Farming inputs financing
Annual Equipment Equipment
Revenue License fee, cost, cloud sale, monthly Commission INR 1100 crore
Per Acre fees Services fees Online Retail
Model field analysis services subscription on sale turnover FY 14,
fees subscription cost
Invested Epsilon Mayfield,
Viilgro, Omnivore
Development, Omnivore Omnivore IDG, Ventures, Nexus,
Investors Menterra, partners, Asia
Ankur Capital, Partners Partners Aavishkaar Gram Everstone,
Artha Ventures Pacific
Seeders Suchana ICICI, Creation
Source: Company Websites, CB Insights
22