INTRODUCTION TO AGRIBUSINESS AND INNOVATION PLATFORM @

ICRISAT

INTRODUCTION TO AGRIBUSINESS AND INNOVATION PLATFORM @

ICRISAT

PRESENTED BY:Mr. KaruppanchettyCOO, ABI- ICRISAT

AGRI- BUSINESS INCUBATION PROGRAM, ICRISAT

ICRISAT Strategy 2020

OUTCOMES

Agribusiness and Innovation Platform (AIP)

OUTCOME

AGRIBUSINESS AND INNOVATION PLATFORM (AIP)[formerly Agri Science Park@ICRISAT]

Objectives• To serve as a mechanism for technology transfer from ICRISAT to the

private/ public sector.• To translate in-house R&D outputs as well as those developed in

partnership with NARS into commercially viable technologies in collaboration with the Private Sector.

• To serve as a tool for economic development for the region.

Established in 2003 as a model for fostering agro-business to bring R&D innovations of ICRISAT and its partners to the market for fast & wide-scale impact

Established in 2003 as a model for fostering agro-business to bring R&D innovations of ICRISAT and its partners to the market for fast & wide-scale impact

PROGRAMS OF AIP

INNOVATION & PARTNERSHIP

AGRI- BUSINESS INCUBATION

NUTRIPLUS KNOWLEDGE

Service strategy • Seed Ventures• Biofuel ventures• Innovative ventures• Farm ventures and • Agri-biotech ventures

Outreach strategy (Co-Business Incubation )To partner with Institutes /organizations globally on Business Incubation to promote these ventures and enhance technology commercialization through Co- Business Incubation

Agri-Business Incubation Program (ABI)

To facilitate creation of competitive agri- business enterprises through technology development and

commercialization

To facilitate creation of competitive agri- business enterprises through technology development and

commercialization

“ Facilitate creation of competitive Agri-business enterprise through technology

development and commercialization”

Supported by NSTEDB-DST , Govt. of IndiaSupported by NSTEDB-DST , Govt. of India

Started in 2003Started in 2003

MissionMission

AGRI BUSINESS INCUBATION (ABI) PROGRAM AT ICRISAT

FARM VENTURES

SEED VENTURES BIOFUEL VENTURES

INNOVATIVE VENTURES

AGRI BIOTECH VENTURES

MANTRA OF ABI- ICRISAT

Eg: Anil & company, CF Biotech, SiddhivinayakaEg: Anil & company, CF Biotech, Siddhivinayaka

ABI promotes innovative ventures in agri-business which are proprietary products or novel service that has good market potential

ABI promotes innovative ventures in agri-business which are proprietary products or novel service that has good market potential

FARM VENTURES

Services provided: • Technical consultancy on crop production• Farm business consultancy on planning and

management• Training and capacity building• Market assistance through network partners

These services are provided through Co-business incubation partners, TNAU, Coimbatore and others.

SERVICES PROVIDED

Eg: Cooking spray, Steviocides, Sugarcane harvestor, Automatic irrigation system, Agri info mobile services

Eg: Cooking spray, Steviocides, Sugarcane harvestor, Automatic irrigation system, Agri info mobile services

• Technical consultancy through ICRISAT & co-business incubation partners

• Prototype development• Quality/Test certification of finished products• Business development through publicity and promotion• Access to infrastructure and facility on need basis• Assist in obtaining financial assistance from Banks / VCs• Access to seed grant funds of TDB- DST & TePP-DSIR,

Govt. of India

SERVICES PROVIDED

ABI promotes innovative ventures in agri-business which are proprietary products or novel service that has good market potential

ABI promotes innovative ventures in agri-business which are proprietary products or novel service that has good market potential

INNOVATIVE VENTURES

SEED VENTURESAn initiative to develop and promote rural seed business ventures at village level in order to bridge demand and supply gap of open pollinated quality seeds through public, private and people partnership (PPPP)

An initiative to develop and promote rural seed business ventures at village level in order to bridge demand and supply gap of open pollinated quality seeds through public, private and people partnership (PPPP)

Eg: SBVs in Andhra Pradesh and Tamil nadu

ABI Seed Venture Clients

SBI clients in Andhra Pradesh

No. of seed entrepreneurs in Andhra Pradesh: 36

SBI clients in Tamil Nadu

No. of seed entrepreneurs in Tamil Nadu: 25

Services provided:

• Business consultancy through Project report and feasibility study

• Turnkey project execution through partners

• Supply-chain management solutions through contract farming and decentralized unit models

• Sweet sorghum parental lines for seed production

• Capacity building of extension officials and farmers

Services provided:

• Business consultancy through Project report and feasibility study

• Turnkey project execution through partners

• Supply-chain management solutions through contract farming and decentralized unit models

• Sweet sorghum parental lines for seed production

• Capacity building of extension officials and farmers

Biofuels are the main focus area of ABI-ICRISAT to promote industries in ethanol production from sweet sorghum and other agro produce.

Bio fuel Ventures

Eg:Rusni distilleries, CF Biotech, TCL, Praj Industries & NAIP DCU

Services provided:

• Technology consultancy• Facilitate technology transfer• Capacity building• Consultation on bio-safety issues• Biotech lab facility• Green house facility

Services provided:

• Technology consultancy• Facilitate technology transfer• Capacity building• Consultation on bio-safety issues• Biotech lab facility• Green house facility

ABI-ICRISAT promotes seed companies in the emerging area of agri-biotech in developing Transformation protocol for commercial crops, Marker development for traits of interest for seed producers, and Tissue culture of medicinal, horticultural, and tree crops.

Bio tech Ventures

Eg: Bio seed, Matrix agri sciences

Biz Consultancy BiZ Development

Capacity Building & Networking events

ABI Services

ISBA, ConferenceISBA, Conference

ABI is executive member of Indian STEP and Business Incubation Association (ISBA)

ABI had organized the 1st ISBA Annual Conference on 27th Feb 2007 at ICRISAT

ABI is executive member of Indian STEP and Business Incubation Association (ISBA)

ABI had organized the 1st ISBA Annual Conference on 27th Feb 2007 at ICRISAT

2nd Global Forum for Business Incubation, Nov

6-10th 2006

2nd Global Forum for Business Incubation, Nov

6-10th 2006ABI is a active member of Global Business Incubators Network

ABI had organized the 2nd Global Forum for Business Incubation along with World Bank, DST and FICCI in Hyderabad

ABI is a active member of Global Business Incubators Network

ABI had organized the 2nd Global Forum for Business Incubation along with World Bank, DST and FICCI in Hyderabad

National and International Alliance

TDB –DST Seed Funding

TDB –DST Seed Funding

Techno-entrepreneur Promotion program (TePP)

Outreach Centre – ABI-ICRISAT

Techno-entrepreneur Promotion program (TePP)

Outreach Centre – ABI-ICRISAT

Linkages with National Developmental Initiatives

•Funding start-ups in agribusiness through TDB-DST Seed funds of ABI-ICRISAT

•US$2000 – 50,000/Venture as Seed capitalInvested in 3 ventures for US$45,000

•Funding start-ups in agribusiness through TDB-DST Seed funds of ABI-ICRISAT

•US$2000 – 50,000/Venture as Seed capitalInvested in 3 ventures for US$45,000

•Promoting innovators in agribusiness through financial assistance from TePP program of DSIR & incubation support

•US$1500-30,000 for Ideation, Prototypes, Patenting

•Facilitated Funding for five innovators for US$17,000

•Promoting innovators in agribusiness through financial assistance from TePP program of DSIR & incubation support

•US$1500-30,000 for Ideation, Prototypes, Patenting

•Facilitated Funding for five innovators for US$17,000

Agri-Business Incubation ( ABI) Agri-Business Incubation ( ABI) Program-Program-ICRISAT, IndiaICRISAT, India

Impacts & Achievements of ABI

ABI ICRISAT ImpactsTechnologies

commercialized

• ABI-ICRISAT tops Asia Association of Business Incubators award in 2008 from AABI

• ABI-ICRISAT received National award for the Best Incubator 2005 from DST, GOI

• Best Social entrepreneur of the Country to ABI Client Rusni by the Prime Minister of India

• FAPCI Award for Rural development to ABI client AAI

Asia Pacific Business Incubator award 2008

National award for business incubation 2005

Awards

Agri-Business Incubation ( ABI) Agri-Business Incubation ( ABI) program-program-ICRISAT, IndiaICRISAT, India

Financials & Sustainability of ABI

CAPITAL GAINS MODEL• Big impact highly proprietary

technologies• Types of incubatees

– Mature/ large businesses– Start-ups with solid entrepreneurs

• Characteristics:– Needs less ABI mgmt support– Needs great new tech

development support from ICRISAT..

• Equity payment primarily

FRANCHISE / REVENUE GEN. MODEL

• Incremental technologies / pure services.

• Type of incubatees– Numerous small businesses /

entrepreneurs• Characteristics:

– Needs significant ABI mgmt. support

– Does not need great new tech inputs

– Needs investment in technology transfer

– Needs investment in branding / marketing

• Service / royalties / one time feesFinancial Impacts• Investment in ABI through DST $603K

• Revenue from ABI $1253K

• Revenue to ICRISAT through ABI $759 K

• Return on investment 18%

• R & D Projects benefits to ICRISAT $6.3 million (6 projects)

• Annual budget $223 K

Business Models and Financial Impact

REVENUE GENERATION FOR 5 YEARS

ABI-ICRISAT is operationally self sustained

Impact on farm livelihoods & society

• Farming community:• Access to markets for 3 agro products• Increased the profits of the farmers worth $

23 ventures worth $ 13.2 million• Enhanced convenience of farmers through

new tools and services like mobile based extension services, handy cotton harvestor etc

Agribusiness Community•Incubated 120 agribusiness ventures•Facilitated funding to 23 venture worth $ 13.2 million•More than 650 entrepreneurs trained•Assisted in the commercialization of 34 agro- technologies•Direct employment generated in the rural community was 832•Funding assistance for 40 ventures

Lessons learnt in India & solutionsLessons learnt in India & solutions

Lessons learnt in India & solutionsLessons learnt in India & solutions

ABI’s approach

I. Co- Business Incubation at National and International level

II. Institutional partnerships through “Network of Indian Agri- Business Incubators” (NIABI)

III. Food processing Initiatives– Cooking Oil- B.R Cooking Spray– TNAU Client innovative food processed

products- Coronet foods–Nutriplus (AIP)

INSIGHTS ON CO- BUSINESS

INCUBATION AT ABI- ICRISAT

I. CO- BUSINESS INCUBATION AT ICRISAT

• “Co-business incubation is a platform that two or more incubator shares on mutually similar programs based on each others competence for joint execution of incubation activities for achieving enhanced impact and client servicing”

• The outreach strategy of ABI is to partner with Institutes /organizations globally on Co-Business Incubation to promote ventures and enhance technology commercialization

BENEFITS

• Enhanced support and services to more number of entrepreneurs

• Complimenting technology and business in their respective domains

• Access to physical, technical and other facilities for clients on co-business incubation basis

• Inclusive growth through focused implementation of new venture creation and technology commercialization

• Enhanced benefits to the incubatees through technical and market access

• Promotion of cross border ventures and business development

• Common branding gives better marketability of the programs

SERVICES

• Planning, development and implementation of business incubator

• Facilitating Coordination and operations • Capacity building and training on business incubation operations• Business consultancy support services• Access to seed capital funding to TDB for the entrepreneurs• Development and implementation of incubation service modules

like Seed Ventures, Agri Biotech Ventures, Innovative Ventures, Farm ventures and Biofuel ventures etc.

• Business Facilitation support and co-branding with ABI-ICRISAT.• Making the system Successful & self sustainable through

monitoring & evaluation.

1. Tamil Nadu Agricultural University, Coimbatore

Incubation programs & Services

1. Innovative ventures

2. Seed Ventures

3. Farm ventures

4. Food Processing ventures

5. Biofuel ventures

No. of clients: 15

2. Science & Technology Entrepreneurs Park (STEP), Thapar University, Patiala

Incubation programs & Services

1. Innovative ventures

2. Food Processing ventures

3. Biofertilisers & Biopesticides ventures

4. Tissue culture ventures

No. of clients: 10

Co Business Incubation Partners

3. Agri Business Incubation Initiative at Mozambique

How it STARTED?

• To carry forward the Indian success story of ABI and provide inclusive growth of agricultural development in Mozambique

• Explore opportunities for setting up Agri Business Incubation in Mozambique through local NARS and ICRISAT centre.

• To consult ICRISAT Seed System

Initiatives on USEBA & Seeds Business Model

• First Interest on ABI from IIAM, Management

• Financial Support by ICRISAT, Mozambique

WHY MOZAMBIQUE?

At ICRISAT

At TNAU, Coimbatore

At TNAU, Coimbatore

International Incubator Conference by Infodev &Vellore Framers Interaction,TN

Key Management Team Training in India May 2007

Drs Calisto Bias and William Dar sign the Letter of Intent, in the presence of Carlos Dominguez and Paula Pimentel.

Objective

To develop a Farm Business Incubator at IIAM for technology exchange and local entrepreneurship development

Support services

Share best practices, transfer technology, support the development of services and products in both regions, and interact with the market possibilities in Mozambique and India.

Other initiatives• Facilitated Netwoking with African Incubators through African

Incubator association Conference in 8-10 July 2007,Maputo• Facilitated on ToR for recruitment of BI, Manager-IIAM• Assisted resource mobilization

– CIDA –Mc Gill – Infodev

The program did not take off due to change in management of IIAM & initiatives

IIAM signs up with ICRISAT on ABI, Sept 2007

Rusni Biofuels Seed Works (I) Pvt. Ltd. SEKAB-Eco Energia

Soft landing Soft landing Facilitate business & technical partnershipMocfer

Facilitate business & technical partnership

The BI activities continued directly through ICRISAT-Mozambique office & ABI-ICRISAT

ABI Initiatives Mozambique

Services to be offered– Start-up support

• Identify existing and potential entrepreneurs• Legal registration of seed companies• Increase knowledge of the formal seed industry Technical support to seed

businesses• Facilitate access to

foundation seed for certified seed production

• Technical support in seed production

• Seed quality control service for seed companies

• Development of seed company quality management system

• Seed processing/storage services

4. SEDIS

Services to be offered– Agribusiness management capacity

• Seed business management training• Financial management advising• Seed marketing information• Agrodealer business training

–Smallholder demand for improved inputs

• Assessment of agrodealer capacity to attend/motivate new demand• Agrodealer training on product usage• Demonstration plots and field days• Linking inputs and outputs

•Mozambican Seed Trade Association (APROSEM)• Legalization in process

• Documents submitted to national authorities•Meeting agenda:

• Board members election• New directive members election• New members admission

SEDIS

ABI at Agricultural Research and Extension Unit (AREU), Mauritius ICAR-NAIP Business Planning & Development

Units (Business Incubators)

AREU, Mauritius CIFT, Cochin

SDAU, Gujarat CIRCOT, Mumbai

UAS, Bangalore IARI, New Delhi

Gujarat State Biotech Mission, Gujarat NIRJAFT, Kolkata

Xavier University College of Agriculture, Philippines IVRI, Izatnagar

“Facilitating 10 Agri Business Incubation initiatives globally”

5. Other Incubation Partners

42

II. NIABINIABI is “Network of Indian Agri business Incubators”. NAIP has entrusted the ABI-ICRISAT with the responsibility to handhold and mentor these 10 BPDs through a project funded under component I.

INFRASTUCTURE

• Creating a databank of indigenous agro-technologies

for commercialization from ICAR, SAUs, CSIR etc.

• Identifying international agro technologies suitable

for the Indian context.

• Creating a networking platform for agri-businessmen

and mentors.

• Creating a platform for facilitating funding to start-

up agri-business

HOW WE DO?

HOW WE DO?

PROCESS

• Capacity Building / training programme of BI

managers on new initiatives and approaches in

agri-business incubation.

• Mentoring and guidance of BIs through direct

visits and annual meetings.

• Promotion of agri-business incubation / nationally

through co-business incubation.

OUTCOME

• Facilitate business of agri start-up and incubatees by

participation in local and international exhibitions.

• Seminar on Best practices to start-up agri-business

through video conference / web casting.

• Facilitating soft-landing support.

• Network of Indian Agri-Business Incubators(NIABI).

• Annual Incubator / Incubatee awards.

HOW WE DO?

PROMOTION OF AGRI-BUSINESS INCUBATION / NATIONALLY THROUGH CO-

BUSINESS INCUBATIONCo-marketing under common branding; NIABI

(Network of Indian Agri-Business Incubators) –Communication materials, kits, display, exhibition– Preparation of NIABI brochure, NIABi newsletter

& NIABI Video– Banners and Panels for participation in events

and exhibitions– Participation in events

Brochure Website

Video

Newsletter

III. Food Processing Initiatives

• NutriPlus Knowledge Center in Agri-Science Park @ ICRISAT is a platform for R&D and innovations in food processing with focus on cereals, legumes, fruits / vegetables, medicinal and aromatic plants

• The verticals for applied research are nutraceuticals, fortified foods, flavors and fragrances, phytoceuticals, functional foods, functional beverages, food additives and color bio-actives and enzymes, post-harvest management and bio-products

• NutriPlus is a US $ 6 million project

Food processing Initiatives

CO- BI partner TNAU, Coimbatore Incubatee

Coronet Foods

Food processing Initiatives

Cooking Oil Spray product by ABI- ICRISAT Incubatee- Mr. Rami Reddy

Way ForwardWay Forward

Framework of Global Agribusiness Incubation in the 21st century

CGIAR & Infodev -A harbinger for Global ABI CGIAR & Infodev -A harbinger for Global ABI Global Agri Business Incubator Initiative

Agri Business development in 21st century

Business incubators in the World

1600

1100

200350

150

1400

25225425625825

10251225142516251825

NorthAmerica

WesternEurope

EasternEurope

Asia (exceptMiddle East)

South &Central

America

Africa,Middle Eastand others

Continent/Region

No

. o

f in

cub

ato

rs

No. of Agri Business Incubators in the World: 25

Only 0.5% of the total business incubators in the World

Global Share of ABI in the BIs

Current Agri Business Incubators in the World

• Cost of establishing 200 CoBIs under 5 COEs = $120 million

• Total operational cost = $100 million

• Seed fund from CGIAR to all the CoBIs= $50 million

• Total cost of the global ABI system = $270 million

• Cost of establishing 200 CoBIs under 5 COEs = $120 million

• Total operational cost = $100 million

• Seed fund from CGIAR to all the CoBIs= $50 million

• Total cost of the global ABI system = $270 million

Basis: •Cost of establishing an ABI = $0.6 million•Annual cost of Operations per ABI =$0.1 million •No. of clients per ABI =14 (source: NBIA)•Returns per ABI per year =$110K**Returns will be based on the utilization and performance of ventures •Technologies to be commercialized per incubator: 10•Investment mobilized per ventures =$2.9 million (source: NBIA)

Investment Investment

• Total returns expected through incubators= $110 million

• Returns through equities and royalties on seed fund =$100**

• Total returns expected through incubators= $110 million

• Returns through equities and royalties on seed fund =$100**

Returns Returns Impacts Impacts

• No. of farmers could be benefited=28 million

• No. of agri business ventures could be incubated= 2800

• No. of technologies can be commercialized= 200

• Expected Investment in ventures $580 million

• No. of farmers could be benefited=28 million

• No. of agri business ventures could be incubated= 2800

• No. of technologies can be commercialized= 200

• Expected Investment in ventures $580 million

I

GABI by promoting 200

ABI i.e, 5% of the ABI among BIs globally, it can anchor 2800 agri business ventures and

benefit 2.8million farmers with an

investment of $270 million

Agri Business Incubation- Investment, Returns & Impact

55

THANK YOUThe Opportunity is very HUGEThe Opportunity is very HUGELet us Partner for Let us Partner for Co-ProsperityCo-ProsperityThe Environment is FragileThe Environment is FragileLet us make Let us make a Differencea Difference