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Saraswati Dairy and Laxmi Farm’s Integrated Agri-business model: Catalyst or Catastrophic?

CASELET, ENTREPRENEURSHIP & STARTUPS
ET Cases, 7 Pages
AUTHOR(S) : Dr. Nitin Ranjan and Dr. Tripti Sahu - International Institute of Management Studies

Case Preview

Saraswati Dairy and Laxmi Farm’s Integrated Agri-business model: Catalyst or Catastrophic?

 

Vinod Pradip (Vinod), a Btech graduate, ventured into Software Outsourcing business at a young age. Thanks to his hard work and dedication, the business flourished well and provided employment to 40 odd people. However, there was always something in his mind which used to make him feel incomplete. The 30-year-old software service provider was always fascinated about village life style. He was not very happy and comfortable with the urban life style. From the core of his heart, he always wanted to start farming related business venture near his village surroundings. But the economic condition of agripreneurs in India and specifically in Bihar was not very encouraging. Despite having sufficient land and rural upbringing, it was never easy for a software professional to comeback and commence anything related to farming. On a weekend, when Vinod visited his village, he overheard a discussion by a few villagers on White Revolution and its impact on the rural economy. Vinod actively participated in the discussion and got to know many interesting facts regarding dairy business...............

Socio-economic Condition of Bihar: Bihar, a state of Eastern India used to provide largest number of the skilled and unskilled labour to several states across the nation. It was observed that population of Bihar was highly mobile. Many Indian states absorbed a large number of migrated labour from Bihar in various occupations. British era has also witnessed similar trend when human resource of Bihar was deployed in “Neel ki Kheti” (Indigo plantation)............

Evolution of an Integrated Dairy Farm Business Model

After a considerable thought, Vinod came out with his own unique integrated dairy farm business model (Exhibit I) i.e. Saraswati Dairy, Laxmi Farm in Barauli Gopalganj, Bihar. He started agriculture and allied businesses in the year 2012. He divided his 2.5 acre land in such a scientific way that he can easily do farming and simultaneously run his dairy ventures. Vinod did an extensive research on integrated farming and also took advice from the agri-experts in the nearby vicinity. Rather than doing dairy business in traditional way, he endeavoured to bring professional approach to his new business project and successfully created new business. In order to gain requisite skills for his business venture, he pursued a training program from “National Dairy Research Institute (NDRI)” for cattle breeding and also undergone another training program from “Rural Self Employment Training Institute (RSETI)” Gopalganj, Bihar..........


Exhibits

Exhibit I: Saraswati Dairy and Laxmi Farm’s Business Model (Original)

Teaching Note Preview

Saraswati Dairy and Laxmi Farm’s Integrated Agri-business model: Catalyst or Catastrophic?


Synopsis

Saraswati Dairy and Laxmi Farm was started by a young and dynamic IT entrepreneur, Vinod Pradip (Vinod), in the year 2012. His fascination for village lifestyle inspired him to become an agripreneur and he finally took a decision to connect with his roots (rural) through dairy farming and other allied businesses. To bring professional approach to this traditional business, he equipped himself with a proper practical training from RSETI Gopalganj and NDRI Karnal. He integrated five (Dairy, Fisheries, Poultry, Goat farming and Vermicompost) separate businesses in one integrated business model in such a way where waste of one business become an inevitable resource for another. This integrated business model resulted in lowering the cost of operation and widened the profit margin. Within 5 years of its business operations, Saraswati Dairy and Laxmi Farm evolved as a role model for the farmers, agri-business aspirants and even for the RSETI.

He was also interviewed by Doordarshan Kissan Channel with the intention to maximize farmer’s income whose primary source of earning depends on Dairy Farming. Despite having strong customer base and reasonable profit, Saraswati Dairy and Laxmi Farm was gradually by acute shortage of labour. Bihar, the state which is known for supplying skilled and unskilled labour across the nation had developed a complex socio-political economic and cultural system. Mass migration of labour from the state resulted in unavailability of labour in local area which has adversely impacted the business of Saraswati Dairy and Laxmi Farm, and simultaneously the firm started facing the issue of rising NPA in live stock (cattle). He was not able to find a permanent feasible sustainable solution due to his social and religious values.

Prerequisite Conceptual Understanding

A brief study of socio-economic conditions of Bihar State is suggested.

Expected Learning Outcomes

• Critically analyze the success factors of an integrated professionally managed business
• Provide a base for understanding impact of socio-cultural, political impact on the working of a business
• Understand practical difficulties in implementing well thought-out business plan

Case Positioning and Setting

This case study can be used for Post-graduate Management students in Entrepreneurship Development and Resource Management fields.

Assignment Questions

I. What could be the probable causes of the venture failure?

II. ......................

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Abstract

With the evolution of Indian economy and opening up of new dimensions of business, more number of Indian youth got obsessed by the entrepreneurship hype. Interestingly, this new generation of entrepreneurs had converted the rural area into the business laboratory from where they design, customize and begin their entrepreneurial journey. This case study illustrates an example of a young entrepreneur and his attempt to bring the potential of rural integrated agri-based projects into focus. The case study describes the promising sustainable integrated farming model which after running successfully for initial years faces operational difficulties. The case is a genuine effort to bring the practicality of Indian agri-based business scenario to public. The study also identifies on practical grounds, the probable socio-economic hurdles which may come on the way of these agripreneurs.


Pedagogical Objectives

  • To critically analyze the success factors of an integrated professionally managed business
  • To provide a base for understanding impact of socio-cultural, political impact on the working of a business
  • To understand practical difficulties of implementing well-thought out business plan

Case Positioning and Setting

This case study can be used for Post-graduate Management students in Entrepreneurship Development and Resource Management fields.



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- Abstract
- Caselet
- Teaching Note (**ONLY for Academicians)
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