need help on safed moosali plantation project...Pls suggest.
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need help on safed moosali plantation project...Pls suggest.
Kunal Soni did his Masters from Scotland but after returning home he joined his family business of Medicinal Products trading. He visualizes for a bright future in medicinal plants business.
Greenfield Agro Forestry Products deals in trading of agricultural, forestry and medicinal products. The company is located in Madhya Pradesh and is run by Mr. Kunal Soni. Mr. Kunal is a computer science engineering graduate. He also has a Masters in Business Information Technology Systems from the University of Strathclyde in Glasgow, Scotland.
Products and Procurement
Though Greenfield Agro Forestry Products carries a wide range of products, they specialize mostly in seeds that they sell in bulk. Some of the seeds that the company provides are:
• White Kinvach Seeds (Mucuna Pruita) “Mucuna pruriens”
• White Sandal Seeds (Santalum Album I.) “Santalum Album”
• Shataward Seeds (Asparagus Racemosus) “Shatawar”
• Katanga Bamboo Seeds (Bambusa Arundinacea)
• Eucalyptus (Eucalyptos Globulus)” Eucalyptus Globulus”
• Bael Seeds (Aegle Marmelos)
• Cassia Sammia (Cinnamomum Camphora) “Samia”
Since the company does not grow the plants themselves, different means are employed to procure their products. When asked about how they attain the products that they deal at the company, Mr. Kunal shared, “It highly depends on the product, as Greenfield is working throughout the country and items are purchased both locally and from other states as well. These are usually traders for bulk quantity and farmer or seed collectors for small quantities.”
To boost the success of the company, Mr. Kunal has identified the company’s target market saying, “As of now our target customers are common people India who have empty land and want to do something different from the regular agricultural products such as wheat, rice or pulses.”
Greenfield also targets international customers through exportation. This is in order to branch out and expand the growth of the company. “Greenfield Agro Forestry Products (GAFP) is moving in to exports too, so that we could fulfill the requirements of people who are looking for [our] products and can’t find it in their country,” Mr. Kunal said.
As a result of their hard work, Greenfield has been successful in capturing 10 percent of the medicinal plant market. They have also been able to capture roughly 30 percent of the seed market.
No business is without challenges and although the medicinal market is well known to be quite lucrative, it also carries its own risks. Some of the risks that the company has to deal with are the fluctuation of rates that they can sell their products for. There are also issues involved with the viability period of the seeds that they provide.
“If plants are to be provided alive for production, transport becomes a considerably big problem as mortality rate is sometimes high during its travel, and furthermore a few plants are supposed to be provided in a short period of time so air cargo is used which increases rates for customers,” Mr. Kunal expounded.
Trading in medicinal plants has become a very lucrative business. However, it is difficult to capture a market because there is little research being conducted on it. Mr. Kunal shared that there is difficulty involved when going up against other competitors in the market.
“It’s true that competition is fierce, and in order to stand in the market, prices are kept low. Low prices only provide feasible profit on high volume demands. Hence, we look for bulk orders and make sure that we buys from farmers directly so that procurement doesn’t go too high,” Mr. Kunal said.
Mr. Kunal also acknowledged that amongst the competition in the industry, he has a particular appreciation for the traders from Neemuch. He was unafraid to praise the traders and said; “Their working pattern is traditional but still amazes me when I see their reach the market. As these people are traditional, they lack innovation, but they work with a single goal to complete deals with high efficiency and profits.”
The future of Greenfield Agro Forestry Products is a bright one. With the boom in the medicinal plants industry and the demand for certain seeds growing in the international market, the company have a huge opportunity to get their foot in the door. When asked about his plans for the company in the next five years, Mr. Kunal simply said, “To make GAFP an international and well known trader of medicinal products.”
What are your impressions on the article. Feel free to post the query and comments on the subject. Kunal, shall be replying the questions.
Last edited by editorialteam; April 13th, 2012 at 04:55 PM.
Medicinal plants contract farming is having its own problems.
Companies want at their own terms and conditions where farmers cannot afford such conditions.
Companies want large quantity of area in single stretch where most of the farms are small holdings.
Farmers feedback on contract farming is discouraging as they had bad experience for them when they had contract farming assignment.
Dear Mr. Swamy,
What is your opinion on growth prospects when few companies call for farmers interested in medicinal plants contract farming and offer them the buy back guarantee?
One of our members T.S.Rao wants to ask you
"I would like to buy the seeds of Shatavari (Asparagus Racemosus), can u pl. give me more details on availability, price etc."
Yes we can provide shatavari seeds in bulk quantity, our minimum order quantity is 10 kgs.
I would say its a matter of negotiation, the conditions put up by any company has its own reason. When a company goes for contract farming for first time there are lot of losses they face due to lack of experience and attention to details. With every new contract a company implies condition which carries correction of their past mistake.
I can explain with our example. We provided 2.5 crore plants of jatropha with help of contract farming with our local farmers, after that my personal experience says that its not always like "poor are always innocent". The contract was that we will provide farmers seeds and they will return us plants at cost at which they will make profits. In order to get maximum plants farmers sowed seeds very densely as seeds were free for them, which resulted in thin plants which customers denied to buy, ultimately we were forced to negotiate with customer to sell them at a lower price. this consequently putted us on loss. Secondly, we worked at four different sites as getting land on a single stretch was not possible, it seriously damaged our management and killed our time beyond our expectation. Its very difficult to keep an eye on them, at one of our site we are still in a impression that the farmer had sold our seeds at comparatively lower price than market but as seed was free to him he got profits out of it.
Hence I would like to say a farmer must read the contract carefully before signing because there are few company who follow brutal practices but still not all company are that bad. They are just refining there mistakes with every new contract they go for, and I am sure a farmer does the same when he attains some experience.
Can you please contact us as we are interested in further discussion.
Last edited by moderator A; April 25th, 2012 at 02:31 PM. Reason: only premium members are allowed to post contact info. please click My Account to upgrade
Last edited by moderator A; April 30th, 2012 at 08:03 PM. Reason: Only business Members are allowed to post contact info. Please click “My Account” to upgrade to a Business Member
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