Photo - Shivam Kumar - DelBerri
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Shivam Kumar - DelBerri

Agri-Tech Supply chain

India
Market: Food industry, Farming
Stage of the project: Idea or something is already done

Date of last change: 14.11.2017
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Idea

DelBerri is an Agri-Tech startup based out of India. Our business model is simple we buy fresh fruits and vegetable directly from farmers and then supply it directly to other business in urban areas.
At present the supply chain model of fruits and vegetable in India is very inefficient and as a result there are huge losses of the produce. The Market size in one city alone is more than $ 21 million a year.

Current Status

We have added more than 100 farmers in our network and our team is working to add more and getting the information about their harvest.
On customer side we are getting positive response and many small restaurants are interested in buying fruits and vegetables from us
We are planning to start sales to our customers in a few weeks.

Market

In Gurugram (City near Delhi) approximately $ 21 million market.
Our target is to cover 38% market share in the first two years.

Problem or Opportunity

Wastage of fruits and Vegetable = Rs. 13,300 crore (August 2016, Ministry of Food Processing Report).

Other reports state that fruits and vegetables wastage from produce to end consumers amount to 35-40% of the total quantity of produce.

Currently, supply chain is very complex with many middle men players from produce to consumption.

Currently Pricing of vegetable is decided by auction system and not decided by the demand present in the system.

Solution (product or service)

Our aim is

To buy fresh fruits & vegetables directly from farmers and supply it to other businesses.

To reduce wastage to minimal level from current levels of 35%.

To remove all the middle men present in the supply chain, therefore increasing the income of farmers and lowering the purchase price for business and ultimately lower prices for our customers.

Competitors

At present there are not many organized players in market who provide fruits and vegetable to Restaurants and Offices.

Unorganized small level players are present who supply fruits and vegetables from Wholesale market to Restaurants and Offices.

Advantages or differentiators

The current supply chain contains many middle men which leads to inefficient process and higher prices for consumers.
We want to eliminate all these middle men and directly procure from Farmers.

Finance

Projected Net Income

Year 1 - $ -400168
Year 2 - $ -120300
Year 3 - $ 202960
Year 4 - $ 345034
Year 5 - $ 569307

Business model

Business model is F2B, Farm to Business.

Buying fresh produce directly from farmers.

Selling directly to business like Restaurants, Offices, Retail Outlets, etc.

Margins are deducted to run the company operations before selling the produce to business

Money will be spent on

Money will be spent on

Building farmers network.
Transportation of fruits and vegetable from farm to warehouse.

Team or Management

Risks

The main risk our business model is the perishability of fruits and vegetables, so the Inventory management must very accurate as higher inventory leads to damaged goods and lower inventory leads to loss of sale.
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