New Delhi, Jan. 27 One of the country’s agri-business initiatives, Hariyali Kisaan Bazaar — the rural retail venture of DCM Shriram Consolidated Ltd — has become a case study for students at the Harvard Business School.
Late last year a team from Harvard came to India to extensively study the model and turn it into a case study, and this month it was also presented at their international agri-business seminar at the school.
Earlier, Harvard had studied the e-choupal model of ITC.
“Prof David Bell (of Harvard) contacted us after hearing about the initiative from a participant during a World Bank meeting. He was excited and wanted to study how it was making a difference in the lives of farmers in the country, besides being an example of inclusive growth that the country is advocating,” said Mr Rajesh Gupta, President and Business Head of DSCL’s Hariyali venture.
Catalyst for social change
The study, in fact, has highlighted the model as a catalyst of social change and traces its beginnings to DCM’s deep-seated interests in agri-business and its involvement with the sugar business as early as the 1930s and later its entry into the fertiliser sector in 1966.
The genesis of the retail venture goes back to 1997 when DSCL initiated an agricultural extension programme, Shriram Krishi Vikas Guides, in northern India where the guides were trained agronomists posted in rural areas to address the needs of farmers and solve agri-based problems such as seed quality, irrigation techniques, fertiliser usage and crop yields.
It was at this point that the company found farmers asking for a host of quality agri-products at reasonable prices.
The study quotes Chairman and Managing Director Mr Ajay Shriram recounting how the company found in this a business initiative “which could leverage the agri-value chain, have a transformational impact and improve the quality of life in rural India.”
Today Hariyali has 125 rural centres spread over the north, west and south of the country. Its one-stop shops provide farmers with a range of agri and non-agri products, latest farm technology, farm fuels, and output buyback of farmers’ produce. The centres are also IT-enabled and provide farmers critical data relevant to them, inputs and access to weather forecasts, market prices and other technical knowledge.
Going forward, the company wants to experiment retail on the output and input side. Mr Rajesh Gupta is exploring Hariyali’s potential as a bulk buyer, which would serve as a conduit to rural India for companies who want to sell their products and services there. Motorola is already using the Hariyali route for its handsets. On the output side Hariyali is mulling being an “instrumental link” in the retail value chain, to supply large urban retailers with fresh fruits, vegetables and grains procured directly from the farming community.
The major challenge faced by Hariyali in meeting the expectations of the brand, and cited in the Harvard study, is the logistics of having employees in so many different locations and providing for the economic nuances, attitudes and practices of different regions of the country.
Women are like the stock market Coz they're irrational n can bankrupt u if u're not careful
Joined: 28/Nov/2007
Location: India
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Posts: 635
Posted: 03/Apr/2008 at 2:51pm
I M FOLLOWING Hariyali,they r very aggresive,300 outlet target by fy09 and 150 outlet addition every year. revenure per outlet is 50 lakhs(first year),2 corore+(upto 6 crore) after 3-4 year,their ebidta margin is very low 5%.
it is good story with long term.
disclosure-i hold dcm shriram consolidated.
i was following triveni retail also but they are not doing anything they have only 42-43 outlets and no addition from last one year.
I M FOLLOWING Hariyali,they r very aggresive,300 outlet target by fy09 and 150 outlet addition every year. revenure per outlet is 50 lakhs(first year),2 corore+(upto 6 crore) after 3-4 year,their ebidta margin is very low 5%.
it is good story with long term.
disclosure-i hold dcm shriram consolidated.
i was following triveni retail also but they are not doing anything they have only 42-43 outlets and no addition from last one year.
BGKGURU bhai,
Please share your analysis in detail that why you preferred hariyali to other rural retail outlet operators and what are the indicators that show it will give good outgrowth
Women are like the stock market Coz they're irrational n can bankrupt u if u're not careful
Joined: 28/Nov/2007
Location: India
Online Status: Offline
Posts: 635
Posted: 03/Apr/2008 at 3:31pm
boss i m not very good in writing like other tedies-
they includes all things for family needs they added apparel also.
so they have agri items,groceries,electronic items,appael,fincial products,fuel retailing through hpcl,apparel,pharmacy with fortis(pilot preject right now).
so they all needed items,they haanyve pan india presence, they will not stop anywhere, they will add 150 outlets every year.
my only concern low ebidta margin,iwould like to see it around 7%.
Joined: 28/Nov/2007
Location: India
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Posted: 13/Apr/2008 at 7:42pm
rich harvest from Kisaan Bazaars Mahua Venkatesh Posted online: Tuesday , April 08, 2008 at 2355 hrs
Kandla, Apr 7Organised retail might be faltering in urban India, but is booming in rural India, going by the experience of DCM Shriram Consolidated Ltd’s Hariyali Kisaan Bazaar (HKB). Aimed exclusively at rural India, the company has seen sales from its 160 stores more than double in the last couple of years.
Average sales at an HKB store have gone up to Rs 5 lakh a day during the harvest seasons, while it is around a tenth of that during the lean season. That means the turnover of a single HBK store is over Rs 6 crore, annually, while the investment cost varies between Rs 2 crore and Rs 3 crore.
The growing popularity of HKB stores has also prompted banks and insurance companies to look at possible tie-ups to tap the rural customer. ICICI Lombard and HDFC Bank have already tied up with HKB for their products. Though he furnished few details, Ajay S Shriram, chairman & senior managing director, DCM Shriram Consolidated, said, “Banks and insurance companies get a ready customer base on a platter.”
Shriram said HKB’s retail model was developed exclusively for rural customers. “We have no intentions to bring it to urban areas; it has been designed for rural customers,” he said, adding that retail in rural India is commercially viable.
HKB not only sells products relating to agriculture like fertilisers and seeds, but also household items as 40% of rural India comprises those that are not engaged in farming, Shriram pointed out.
The success of HKB has also encouraged the company to launch pulses and masalas under its own Hariyali brand.
Joined: 02/Oct/2007
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Posted: 18/May/2008 at 11:26am
DCM Shriram to enter seed business
NEW
DELHI: Diversified group DCM Shriram plans not only to enter the hybrid seed
business in India but also position itself as a key international player.
DCM Shriram Consolidated
(DSCL) would focus on hybrid seed market to position itself as a major global
player, DSCL Chairman Ajay Shriram said at a meeting organised by the PHD
Chamber of Commerce and Industry here on Thursday.
The company is working closely
with Manila-based International Rice Research Institute to develop new
varieties, he said.
According
to a statement released by the industry chamber, Shriram, while addressing
Indian industry leaders on DSCL's involvement in agricultural extensions, said
his firm would bring about 50 lakh hectares land under its flagship rural retail
chain Hariyali Kisan Bazar.
ON Television since yesterday I ahve seen advertisement twice for share offer for Godrej properties, can some one please update us all on any info & statistics of godrej properties.
rgds
Women are like the stock market Coz they're irrational n can bankrupt u if u're not careful
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