PGPM 2014

Maverick
Great Farms Organic Jaggery

Pushpender Hooda Robin Rajan

Contents
Introduction ............................................................................................................................................ 3 Organic Jaggery: A healthier alternative to sugar............................................................................... 3 Differences between Organic Jaggery and Refined Sugar .................................................................. 3 Business Model Canvas ........................................................................................................................... 5 Key Partners ........................................................................................................................................ 5 Key Activities ....................................................................................................................................... 5 Value Propositions .............................................................................................................................. 5 Key Resources ..................................................................................................................................... 5 Cost Structure ..................................................................................................................................... 6 Customer Relationship ........................................................................................................................ 6 Customer Segments ............................................................................................................................ 6 Channels .............................................................................................................................................. 6 Revenue Streams ................................................................................................................................ 6 References .......................................................................................................................................... 7

Introduction
We have created a business model to produce and sell Organic Jaggery under the guidance of Prof. KC John. We have started our own enterprise The Great Farms and are planning to make, pack, promote and distribute the Organic Jaggery in the Indian as well as International markets.

Organic Jaggery: A healthier alternative to sugar

Jaggery is a traditional sweetener made by evaporating raw sugarcane juice without separating the molasses from the crystals. It is known as "Panela" in South America & Mexico, "Gur" in India. It is softer than refined sugar, varying in colors from yellow to dark brown. Where refined sugar loses much of its nutritional content during production, jaggery contains trace vitamins and minerals such as potassium, magnesium, phosphorus, iron, and calcium, making it a truly healthier alternative sweetener. Organic Jaggery is made from the organic stem of sugarcane and is free from any chemicals. It is 100% natural and healthier as compared to the regular jaggery. Organic Jaggery also has a richer taste as compared to refined sugar.

Differences between Organic Jaggery and Refined Sugar

Refined sugar is processed using chemicals to clarify the cane sugar juice syrup, whereas Organic Jaggery is produced by simply boiling this syrup without the use of harsh chemicals. Refined sugar is solid and crystalline, whereas Organic Jaggery is soft and amorphous.

Our certified Organic Jaggery is extracted from cane plants that are grown without chemical fertilizers or pesticides. It is also produced without chemicals generally used to clarify cane sugar. During data collection, it was found that the production units produced jaggery in varying quantities. For appropriate study, the production units were classified in three categories viz. small, medium and large. This classification has been made based on the capital investment, crushing capacity and per day production capacity of the unit:

Types of Production Units

Source: Field Survey

The jaggery manufacturing plants are generally using vertical roller type crusher for juice extraction. They are operated by diesel engines because it was found that electric supply is not suitable for this business in rural areas of U.P. They are using round furnace made from ordinary bricks for boiling of cane-juice which is charging by dried baggas. Indian Institute of Petroleum (IIP), Dehrahdun has done realistic work on its furnace formation and fuel consumption.

Business Model Canvas

Key Partners
1. The partners will be all the team members in this project. 2. Suppliers will be the farmers who produce organic sugarcane and the packing box and label vendors. 3. Each of the partners will be assigned a respective department i.e. Procurement, Production, Marketing and Logistics and Distribution.

Key Activities
1. The distribution will be done using Tata Ace. 2. The marketable organic jaggery will be distributed to the local retail shops and connections will be made to retailers like Big Bazaar.

Value Propositions
1. We deliver the purest form of Organic Jaggery to our customers, which is not very readily available in market currently. The jaggery sold at present contains harmful colors and preservatives. Our jaggery will not contain any of these chemicals. 2. We will be marketing Organic Jaggery as a premium product and selling it in attractive packages. 3. Since it as an organic product, we can charge a premium price for it. Even at a relatively higher price, it will be affordable by medium class customers as well. 4. Health conscious customers will readily buy this product. 5. We are successful in making the purest form of organic Jaggery and are able to pack it in attractive packages.

Key Resources
1. The initial capital will be contributed by each member. 2. We will require a suitable area for the production unit, machines to crush sugarcane and make jaggery, another place for packing and labelling and a few small trucks for distribution. 3. Pushpender will contribute his land to establish a packaging and labelling unit in the city, and his farms for organic farming and jaggery production unit in village. The initial capital will be used to purchase the machines and small delivery trucks like Tata Ace. 4. The distribution will be from the production unit to distributors, dealers, and retail shops.

Cost Structure
1. 2. 3. 4. 5. Raw materials procurement cost Machines (sugarcane crusher, boiler, packing and labelling machine) Small trucks for distribution Marketing cost Operational cost (Salary of workers, Fuel etc.)

Customer Relationship
1. The customer will expect us to maintain the quality of the product at the highest level. 2. We will create a bond of trust by providing the customers the purest form of Organic Jaggery.

Customer Segments
1. We are creating value for the customers who are aware of food adulteration in the market. We are providing them a healthier alternative to refined sugar in the form of Organic Jaggery. 2. Our most important customers are the ones who are health conscious. This includes housewives who care for the health of the entire family, people suffering from diseases, individuals who are into the consumption of a healthy diet etc.

Channels
1. We will reach our customers through the local retailers and giant players like Big Bazaar etc. 2. We also plan to sell our product on an e-commerce site in the future as it will be a lot more cost efficient.

Revenue Streams
1. Based on our market research, we realized that customers are willing to pay a premium price for Organic Jaggery. 2. The major part of revenue will come from huge retailers like Big Bazaar etc., and a considerable part from the local retailers. 3. Once the e-commerce site is setup, significant revenue will also start coming in from this channel.

References
Amit Kumar Dwivedi (W.P. No. 2010-12-03). An Empirical Study on Jaggery Industry: December 2010 Indian Institute of Management Ahmedabad, India. Pure Foods: http://www.pureindianfoods.com