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. ......................