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

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

Our unique Knowledgebanking approach to

doing business in the F&A sector
Numerous sub-sectors across the Agri-value-chain
right from the Farm gate to Food plate
Agri & Food
Inputs

Seeds

Prodn. and
Warehousing

Food Corporation

Logistics &
Distrbn.

Ports

Trading

Edible Oil

Processing

Food Retail &

Food Service

Super Markets
Primary Process
of India
Fertilizers
Reefer Transport
Grain
Grain Milling
Hyper Markets
State
Agro-chemicals
Caterers
Spices
Edible Oil
Fast Food &
Warehousing
Beverage Chains
Agri-biotech
Fruits & Veg
Dairy
Corporation
Irrigation
Meat/ aqua
Fruits & Veg
Central
Farm Machinery
Commodity
Sugar
Warehousing
Exchanges
Poultry Feed &
High Value
Corporation
Equipment
Processing
Pvt. Warehouses
Dairy Feed &
Confectionery
Cold Storages
Equip
Bakery
Floriculture
Aqua & Fishery
Beverages
Greenhouses
and Agribusiness Strategic Advisory and Research
team consisting of
FeedA&dedicated
Equipment Food
Dairy
Food Packaging
sector experts has been domiciled within the Development and
Knowledge
Banking
Meat
& Poultry
Food Ingredients
Division of the bank
Marine & Fishery

Knowledge Banking helps us offer customized

products to stakeholders across the value chain
SEEDS

Lending against
offtake contract

Contract Seed Growers

Term lending/ WC

Seed Company

Contractual
agreement

Lending against stop

sales agreement

Distributor

Preferred
distributors

Short term lending

against liquid collateral

Credit sales

EDIBLE OIL

Dealer
Credit/
forward
contract

Crop loan

Crop loans

Farmer

Farmer
Spot market
price

Village level CA
WR finance
Warehouse
Receipt

Mandi/ Warehouse

Warehouse
Receipt

Wholesaler
Credit

Vendor bill
discounting

Miller

Need for a Holistic Development Approach

along the Agri Value Chain

s
nt
m
r
e
Consumer
fo
m
e
p
R
o
Orientation
g
y
el
r
e
v
c
e
lin
to
n
e
D
a
a
Geographic appellation
ul
od
Market
Linkage
re
er
g
u
v
M
li
s
Re uct
e
s
tr
t D ine
i
s
s
ed
fra
Commodity Trading
u
r
n
B
I
C
e
iv
t
Agri Infrastructure
va
AEZ
o
n
n
&
Logistics
I

Financial
Services
Research &
Extension
Farmer
linkages

Traceability

Action steps

Retailer

Market
Development

Wholesaler

Price competitiveness

Processing

Streamlined
supply chain

Handling
& Mrktg.

Production

FASAR Key Corporate Assignments

North
NorthIndia
Indiabased
based
Large
LargeCorporate
Corporate
Group
Group

Entry
EntryStrategy
Strategyfor
forFresh
Fresh
Produce
Business
Produce Businessand
and
Securing
Backward
and
Securing Backward and
Forward
ForwardLinkages
Linkages

Leading
LeadingIndian
Indian
Corporate
Corporate

Diversification
Diversificationinto
into
Organic
Farming
Organic Farmingofof
Fruits
Fruits&&Vegetables
Vegetablesand
and
Entry
into
Bio
fuels
Entry into Bio fuels

Leading
LeadingIndian
Indian
Conglomerate
Conglomerate

Roping
RopingininaaStrategic
Strategic
Partner
for
Distribution
Partner for Distribution
ofofFruits
Fruits&&Vegetables
Vegetablesinin
European
EuropeanMarkets
Markets

Leading
LeadingIndian
Indian
Corporate
Corporate

Entry
Entryinto
intoRural
Rural
Retailing
with
Special
Retailing with Special
Attention
AttentiontotoAgri
AgriInputs
Inputs

Setting up the first state of the art Integrated AgroFood Park in the Country in Andhra Pradesh

Leading
LeadingIndian
Indian
Seed
SeedCompany
Company

Raising
RaisingGrowth
GrowthCapital
Capital
for
Fresh
Produce
for Fresh Produceand
and
Retail
Business
Retail Business

Leading
LeadingFood
Food
Ingredients
IngredientsPlayer
Player
Formulating
FormulatingIndia
India
Strategy
Strategy

Leading
LeadingShipping
Shipping
Conglomerate
Conglomerate

Business
BusinessPotential
Potentialfor
for
Gamma
Irradiation
Gamma Irradiation
Application
ApplicationininFood
Food
Industry
in
India
Industry in India

South
SouthIndia
Indiabased
based
Project
ProjectDeveloper
Developer
Implementation
Implementationofof
Integrated
IntegratedAgro
AgroFood
Food
Parks
in
Andhra
Parks in Andhra
Pradesh,
Pradesh,Tamilnadu,
Tamilnadu,
Karnataka,
Karnataka,Kerala,
Kerala,
Pondicherry
Pondicherryand
and
Maharashtra
Maharashtra