Tata Kisan Sansar

Sowing information to reap a better harvest

IFA Conference, Auckland, New Zealand December 15th, 2004

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Agenda for Presentation

About Tata Group/Tata Chemicals

Indian Agriculture: Some Issues

Tata Kisan Sansar

Tata Kisan Sansar: Going Forward

The Tata Group (1)

Conglomerate of 87 companies in 7 Business Sectors Group Turnover (2003-04): $ 14.2 bn Group Market Cap (Oct 19, 04): $ 24.8 bn Contributes: 2.6% of Indias GDP and 5% of Indias exports Total Number of Employees: 220,219 Probably, Indias best known business group and brand world-wide

The Tata Group (2)

Materials Steel Energy Power Chemicals
5%

Services Hotels Insurance & Asset Management International Trade

21% 9%

7%

31% 6% 21%

Basic Chemicals Fertilizer Pesticides

Engineering Consumer Products Beverages Watches Retailing IT & Communications Software Telecom Services Automation & Control Systems Automobiles Auto Components Air-Conditioning

Tata Chemicals Overview

Founded in 1939 in Coastal Gujarat Leading manufacturer of inorganic chemicals in India Operates Fertilizer plant at Babrala (UP) and Phosphate plant at Haldia (WB)

Our Businesses
> Chemicals > Food Additives > Fertilizers > Total US $ 175 Million US $ 36 Million US $ 360 Million US $ 571 Million
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The Fertilizer Businesses

PJB Haryana

UP Bihar WB

Agenda for Presentation

About Tata Group/Tata Chemicals

Indian Agriculture: Some Issues

Tata Kisan Sansar

Tata Kisan Sansar: Going Forward

Indian Agriculture: Some Issues

Steadily rising consumption due to population growth and expanding livestock sectors outstrip production this is an unsustainable situation in the long-term Key Challenge: Methods to increase yield in sustainable ways and market access

Self-sufficiency from green revolution. Removal of food deficit

India cannot sustain itself when arable land per farmer decreases (due to land constraint) and mouths to feed increases

Source: United States Department of Agriculture, Grain: World Markets and Trade Foreign Agricultural Service Circular Series FG 05-04 May 2004

The Paradox Of Indian Agriculture

Leading Milk Producer

Leading cereal producer

Leading F&V Producer

What Can Be Done Increase value add through improved practices & infrastructure Shift farmers propensity to rely on transmitted knowledge & trial & error Improve accessibility to technology & know how Increase yield, diversity of crop & sustainable agriculture Integrate accessibility to market access, nationally & globally

Source: United States Department of Agriculture, Grain: World Markets and Trade Foreign Agricultural Service Circular Series FG 05-04 May 2004

Agenda for Presentation

About Tata Group/Tata Chemicals

Indian Agriculture: Some Issues

Tata Kisan Sansar

Tata Kisan Sansar: Going Forward

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Criticality Of Farmer Needs

Opportunity: Operate at all stages of the ladder of needs

Challenges: Range & reach to farmer / crops Market access for produce Investment
Source: TCL conducted research

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Tata Kisan Sansar (TKS) Evolving To Customer Needs

Objectives Help farmers create value Improve our relationship with the farmers Strengthen the Tata Brand in rural areas Create a new distribution channel for agricultural inputs

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Tata Kisan Sansar The Concept

An approachable & reliable business partner of the farmer

Offering end-to-end farm management solutions Providing reliable and top quality agri inputs

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The TKS Structure: A Hub & Spoke Model

The Hub 21 Centers Business Manager Agri-Development Off Soil Scientist The Spokes 421 Franchisees 110 Agronomists 25,260 Villages covered 101,040 Farmers 2.2 Million Acres
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Tata Kisan Sansar Services Offered (1)

The Hub Resource Centre Research & Demo Farms Storage facilities Soil testing facilities Information source and training centre Recreational amenities

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A TKS Function

TKS training for farmers

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Census Data

Fertility of land recommendation

GIS Map showing fertility of Naroo village

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Tata Kisan Sansar Services Offered (2)

The Spokes Quality Agri-inputs Farm Equipments Farm Advisory Services Contract Farming Farmer Credit Financing Produce Buyback

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"On their advice, I started to use modern farming techniques and Tata Fertilizers and pesticides. The pests were eliminated and my profits soared
Surendra Uttam of Prempur, a village near Kanpur in Uttar Pradesh

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Agenda for Presentation

About Tata Group/Tata Chemicals

Indian Agriculture: Some Issues

Tata Kisan Sansar

Tata Kisan Sansar: Going Forward

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Tata Kisan Sansar: The Road Ahead

n n

421 TKS 14,000 VILLAGES n 3.5 million FARMERS

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Tata Kisan Sansar: Future Direction

Improve reach, by adding more centres Improve services
Make credit facilitation more robust Help the farmer understand risk mitigation through crop diversification Help facilitate crop insurance

Improve supply chain efficiencies and provide farm-gate linkages Provide information and advice through TKS kiosks Tie up with established institutions like Cornell for pre and post harvest technologies Create market driven R&D solutions
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Prasad Menon

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