Multi-state Cooperative Society

1. Jai Desai – 09 Furquan Deshmukh – 16 Zahan irani – 22 Pritpal Khokar – 25 Smilie Misquitta – 35 Joshua Nagawkar – 40 Shraddha Patel – 48 Multi-state Cooperative Society

2. Topics covered in Presentation • Role of Co-operative in Indian economy • Multi-State Co-operatives Introduction • Features of Multi-State Co-operatives • Case Study – NCCF • Recommendation to NCCF • New Rural Marketing Program through Multi-State Co-operatives : Mobile Phones

3. Role of Co-operatives in Indian Economy • During the year 2007-08, Co-operatives accounted for: • 46% of Agricultural Credit disbursement • 36% of fertilizer distribution • 59% of sugar production • 32% of wheat procurement • 65% of Storage facility

4. Developments so far… • In Fertilizer production & distribution the Indian Farmers fertilizer Cooperative ( IFFCO) with a domestic annual capacity of producing 4.3 Million tones of nitrogenous fertilizers, commands over 35 percent of the market with over 50 million farmers associated with it . • In the production of sugar the cooperative share of the market is over 58percent and in the marketing and distribution of cotton they have a share of around 60 percent. • The cooperative sector accounts for 55 percent of the income in the hand-weaving sector. • Cooperatives process, market & distribute 50 percent of edible oils .

5. Multi-state Co-operative A multi-state Cooperative Society means a society registered or deemed to be registered under the Multi State Cooperative Societies Act, 2002 and includes a national Cooperative society or a Federal Cooperative.

6. Features • Objective – Interest of members and community • No. of Members • Individual membership: minimum 50 from different states • Societies: minimum 2 societies from different states • Multi-state cooperative: multi-state cooperative and a society can sign for the registration • Control – The Central registrar of Cooperatives advises in the affairs of a multi state society • Management – Chairperson, Managing Director and Chief Executive are elected by board of directors

7. Features continued… • Voting Power – One member has right of one vote irrespective of no. of shares held of any denomination • Shares • Not issued to general public • Only equity shares are available • Shares can be withdrawn as per the byelaws • Distribution of profit – Minimum 25% of net profits should be transferred to the General reserve and the maximum dividend cannot exceed 20%

8. Case Study National Cooperative Consumers’ Federation of India Limited

9. NCCF • Set up on 16th October 1965 • It is an apex federation of the consumer cooperatives in India • Headquarters at New Delhi • 34 Branches in different states • 136 members (31/03/09) Main Objective To provide supply support to the consumer cooperatives and other distributing agencies for distribution of consumer goods at reasonable and affordable rates besides rendering technical guidance and assistance to the consumer cooperatives.

10. Membership State level Consumer's Coop. Federations – 20 National level Apex Coop. Federations – 02 (NEFED + NCUI) Large sized Wholesale/ Central/Dept/ – 112 Primary Stores Government of India – 01 National Cooperative Development – 01 Corporation(NCDC) Total 136

11. Organization Chart MANAGING DIRECTOR Vigilance Addl. MD PERS. & ADMIN BUSINESS R & D A/CS & FINANCE GM ( P & A ) GM ( A & F ) GM (Mktg) Sr. Adviser General Manager Manager R & D • Merch. • Grocery • Coal • CG • Textile • Import & • Export • Agri Inputs • Cooperation • Housing • Infra- • Structure • Industry • Mktg • Intelligence • Lab • Accredition • Pers & admin • Legal • Official Language • Board & Policy • Grievances • Coordination • Publicity • IT • Accounts • Internal Audit • Recovery

12. Financial Highlights

13. Sales Performance

14. Business • Grocery • Agri-inputs & infra-structure • General Merchandise • Textile • Confiscated Goods • Import & Export • Coal • New Line of Business Let us see some highlights of the above

15. Grocery • The Grocery business increased from 164.80 Crores in 2006-07 to Rs. 232.82 crores during the year under review. • This was mainly due to efforts made to supply of food grains, various kinds of pulses, edible oil, spices and agricultural seeds to the cooperatives/state agencies and other buyers. • The Federation is likely to procure sizeable quantity of paddy in few States during the Kharif 2008-09 under Minimum Price Support Scheme in order to boost the sales turnover

16. Agri-inputs & Infrastructure • Agri related infrastructure projects like Modern Terminal Markets, Megha Food Parks, Integrated Agri Biotech Park with the permitted financial assistance of APEDA • Pack House/Perishable Cargo Complex at Airports in Gujarat and Madhya Pradesh with the permitted financial assistance of APEDA.

17. General Merchandise • During the year under review the sales of General Merchandise stood at the level of Rs. 149.47 Crores during the 2007-08 in comparison to the sales of Rs.149.68 Crores during the year. • Though the Government has issued revised order in modified form in respect of supply of stationery and other office use articles to Government Departments in favour of the federation, no significant impact has been felt as far as sales is concerned

18. Textile • The sales of non controlled textiles has registered growth as compared to the previous year. It was Rs. 18.57 Cores in the year 2007-08 as against the sales of Rs.14.06 Crores during 2006-07. • Closure of many textile mills in organized sector is the main reason for less turnover in this commodity.

19. Confiscated Goods • The Federation, which is an agency nominated by the Government of India for lifting & distribution of confiscated goods from customs, continued to lift consumer confiscated goods on all India basis. • It distributed confiscated goods comprising of various items to the extent of Rs. 9.45 crores during the year as against the sales of Rs.12.78 crores of the previous year

20. Import / Export • The Federation exported 9000 MTs of par boiled rice to Bangladesh under Indian Flood Relief Assistance during the year 2007-08. Besides, Federation exported 35,353 MTs. of onion through associate shippers

21. Coal • The Federation has faced operational problems to procure Coal from the subsidiaries of Coal India Ltd. due to change in Govt.’s policy/guidelines. • Inspite of the obstacles encountered upon, the sales turnover during the year 2007-08 has increased to Rs. 74.37 crores as compared to the turnover of Rs. 49.74 crores during 2006-07

22. New Line of Business (NLB) With a view to diversify its commercial operations in the changed economic scenario, the Federation has been exploring possibilities of adding new lines of business • Distribution of Select items of daily use by the masses alongwith major PDS items in four States viz. Maharashtra, Gujarat, Rajasthan and West Bengal (Two Districts in each State as a Pilot Project). • Development of Housing Projects in Kolkata being undertaken by the Federation on the land allotted by the Govt. of West Bengal is still in progress which is expected to be completed by March, 2010 • Lifting and distribution of Iron Ore Fines in Jharkhand. • Distribution of Eggs to the School Children under Mid-day Meal Scheme and Arhar Dal under supplementary Nutrition Program/Emergency Feeding Program in the State of Orissa

23. New Line of Business (NLB) • Supply of Sanitary Items in the rural areas in the State of Andhra Pradesh under Total Sanitation Program launched by the A.P. Government. • Supply of agri-inputs like pesticides, insecticides, bio-fertilizers, micro nutrients, seeds to the Government Agencies. • Revival of functioning of Super Bazaar under Joint Venture with M/s. Pantaloon Retail (India) Ltd. • The Federation has also made attempts to enter into the following new lines of business:- • Medical Tourism • Undertaking sale of Liquor.

24. Services Supplier Cities DELHI / GUWAHATI / KOCHI / KOLKATA / NASHIK / NOIDA

25. Services Undertaken • Render technical guidance and assistance to its member institutions in particular, and consumer cooperative societies in general and management methods to improve and increase their operation and management efficiency. • Establish trade connections with manufacturers, their authorized distributors and suppliers/dealers including Government agencies and cooperative organization and to undertake purchase, sale and supply of:- • Agricultural commodities like food grains, pharmaceutical items and other consumer goods • Manufactured and value added items and other Consumer Goods. • Coal and its by products, chemicals, fertilizers, pesticides, insecticides and other industrial goods • Undertake supply of the above items in wholesale and retail as well as to Govt. departments/State Agencies /Cooperatives small scale industries and private parties.

26. Services Undertaken Cont… • Establish, run or sponsor processing of agricultural commodities like food grains, pulses, spices, tea, oilseeds, etc. • Import and export of agricultural commodities like, foodgrains, pulses, spices, oilseeds etc and any other item permissible under import and export policy • Secure from the Government or other sources requisite facilities, assistance and financial aid, both for self and for its member-institutions • Acquire land, building, warehouse, vehicles, factories, workshops, machinery and equipment for its activities. • Coordinate the working of its member institutions with other national level cooperative institutions. • Collect and disseminate necessary marketing intelligence for the benefit of its member’s institutions.

27. Services Undertaken Cont… • Do all such things and take such steps as are incidental or conducive to the attainment of any or all the objects, in collaboration with other cooperatives, public sector undertaking and other Agencies • Establish testing laboratories for testing of consumer goods • To act as agents of Central/State Government for the purpose of sale, storage and distribution of consumer goods. • To subscribe to the share capital of other cooperative institution as well as other public sector enterprises. • To enter into collaboration with International Agency(s) or Body(s) for undertaking international trade. • Arrange supplies of various items required by the Central/State Government, Public Sector Undertaking/Cooperative Organizations

28. Grievance Redressal The Grievances Officers have been nominated in each Branch and also in Head Office of NCCF. • The customers/buyers/suppliers (Registered) can send their complaint in writing to the above said Grievances Officer for redressal of the same, if necessary they can also meet the Grievances Officers. • The Grievances Officers would redress the grievances within a maximum period of three months. • The Head of the Branch and Divisional Heads including Chief Vigilance Officer and Managing Director meet the complainants from 11.00 A.M. to 12.30 P.M. on each Wednesday. • The Managing Director also hears the grievances during his tour to the branches. The concerned Branch notifies the programme of the Managing Director on Notice Board for the information of the public.

29. Recommendation – Online Commerce Step 2. Create a password and provide it to vendors to join your cooperative Step 3. Put in your delivery area and days, or the buyers you sell to Step 1. Create a Profile Page to advertise your cooperative Step 5. Deliver your local food and receive payment based on terms of invoice. Local Dirt does not receive Step 4. Registered buyers can see your Profile Page and price sheet and order for delivery

30. New Rural Marketing Program for Mobile company with help of multi-state cooperative society

31. Telecom Market in India • IAMAI report 2009 – Internet & Mobile Association of India • 400 million mobile user • 80 % is urban user & 20 % rural user • Still 770 million don’t have mobile • Telephone density is about 35% in India • Still 75 % area is uncover Reference - http://www.iamai.in

32. Need & Marketing Challenges

33. New Marketing Program • Nokia, Airtel can jointly tab rural market • Utilize existing multi-state cooperative • Business alliances - Rural marketing contract with IFFCO - Indian Farmers Fertilizer Cooperative • Win - Win situation for both

34. Benefits to Companies • Better Connect with Rural Market • Existing setup across India – Reach • Spread Network of multi-state cooperative • Existing members, customers • Better consumer understanding • Local people as team members – advantage of language, culture knowledge

35. Benefits to Consumer ( Farmers) • Availability of product & reasonable pricing • Communication mode which connects with urban market • Information of market • Better business opportunity • Contactable at any time • Eg: With mobile buyer can contact farmers any time he doesn’t have to wait till he comes to the market

36. Marketing Mix - Product • Airtel network connection & Nokia Mobile Handset Agriculture Value add Services Product Market prices list • Better negotiating power with local agents Input prices • Better buying power Weather update • Better productivity

37. Price & Distribution Price • Affordable price • Mobile from Rs. 1,500 to 2,000 • Call charges – prepaid card, per second charges Distribution • Existing IFFCO distribution network • Training and marketing guidelines

38. Free battery charging booth at cooperative office Operating on solar energy Solves the energy problem at minimum cost Only Booth setup cost & maintenance cost It is practically done for other product like lights Promotion – Free Charging Booth

39. Promotion - Advertisement Radio Ads Wall painting

40. Educate postman about product Give him postcard of product Give incentives for distribution He will explain product while distributing postcard Promotion

41. Society meetings, Mela, Haat, Mandi.. Opportunity to identify opinion leader It will help in understanding customer psyche Demonstration of how to use, benefits, solve other queries Promotion - Demonstration

42. Identify people who can’t afford to pay Rs. 1500/- at once Ask them how much they can save per day, eg. Rs. 25 Give them Gullak (piggy bank) In two months they can buy a Mobile Promotion – Gullak Bachat

43. Identify potential buyer Opinion leader or influencer Farmer, Students, Sarpanch Give it for a two day trial or One week trial Promotion – Product Trial

44. Sponsor it as prize Wrestling events, Bullock cart Races Promote the Brand to audiences from different villages Word of Mouth Promotion – Sponsorship

45. THANK YOU