Ninjacart: Building Cost Effective Agricultural Supply Chain from Farm to Store
| Case Code: ITSY130 Case Length: 7 Pages Period: 2015-2021 Pub Date: 2022 Teaching Note: Available |
Price: Rs.300 Organization: Industry: Agriculture & Forestry Countries: India Themes: Digital Marketplace, Supply Chain Management |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
The Digitization of Agriculture in India
India was primarily an agrarian economy with agriculture contributing 17 to 18 percent of the GDP of the country. Most of the rural people were dependent on agriculture and more than 50 percent of the total population of India was employed in the agriculture sector. Indian agriculture was beset with problems that included small land holdings, inadequate irrigation facilities, and inability of farmers to access mechanized farm implements, lack of suitable storage facilities including warehouses, and lack of access to good quality seeds..
Need For an Effective Food Supply Chain In India
The food supply chain refers to the movement of agri products from the initial supplier (farmer) to the end user (retailers). Food insecurity and poverty were affecting the citizens of India even though there were considerable changes in the domestic and global scenario. Government rules and regulations were hindering the production, supply, and distribution of many agriculture commodities..
Ninjacart’s Supply Chain Solution
Ninjacart’s business model aimed to solve the supply chain problems that arose in the vegetables and fruits supply chain. The business model tried to put an end to the problems faced by the stakeholders in the supply chain such as the farmers, retailers, and the customers. Through its business model, Ninjacart was able to connect the farmers directly with the retailers and thus enable the farmers to get a better price and the retailers to get fresh produce at competitive prices..
Impact of Ninjacart’s Solutions on Society
Nagarajan opined that in the Indian agricultural setup, the farmer normally dealt with six middlemen and drove a hard bargain with them for the price before the product reached the ultimate customer. The traditional market functioned through auctions and the price the farmers got for their farm produce was rather low, with the middlemen carting away 15 to 20 percent of the value of the farm produce. Nagarajan said, “Farmers can get lesser price…and each middleman takes 15-20 % out of the value.” With the agri-platform of Ninjacart, farmers paid less in fees to the wholesalers..
Road Ahead
Ninjacart was working with farmers and educating them on the benefits of residue free farming practices. The company had entered into an agreement with Kilofarms to produce residue-free tomatoes and had plans to include potatoes, muskmelon, ridge gourd, water melon, ladies’ finger, and chilies to the list. The company also planned to develop a fintech platform for the farmers to help them with capital for the purchase of farm equipment, greenhouses, and tractors..
Exhibits
Exhibit I: Details of the Funding Rounds of Ninjacart
Exhibit II : Details of the Competitors of Ninjacart
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