India is in a limbo in the field of mechanisation agriculture. To break down the traditional barriers using technology, Akshaya Agri was established with Satish Nadiger Abhijit Varade Robesh Maity, Nilesh Pathak as well as Amit Talwar in the year 2020.
Based on the definitions of the foundations just 55% of agriculture can be automated in India as opposed to the world where almost all processes are managed by technology.
“The market to purchase farm equipment, which extends beyond tractor models, comes from unorganized sectors that aren’t equipped with these features and serve as barriers to organized sector,” says Satish Nadiger the CEO and Director of Akshaya Agri.
The Pune-based startup offers mechanization solutions and other services in the non-tractor sector to the sector of agriculture. The agriculture industry is one of the most lucrative area that allows businesses to grow. According to the research organization Imarc Imarc, the Indian agricultural machine market is worth the sum of Rs. 926 billion by 2021. The market is projected to grow to at. 1,689 by the year 2027 at an annual rate of 10.6 percent.
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The two founders have been working together for over 14 years while working together with John Deere. In the way Satish describes it the idea for Akshaya Agri was born as he was still working working in the industry. He got involved discussing”the second revolution in green. “In this first revolution India doubled the production of food grains, and then became self-sufficient, however the income of farmers did not increase significantly and were unevenly divided. He demanded that, in the second green revolution it is imperative that farmers get an equal share of the benefits and that is why Akshaya Agri was born around the tenets that was formulated by Annadata Sukhibhava” he says. Annadata Sukhi Bhava is an ancient Sanskrit phrase, means “The person who provides food should have a plentiful life.”
Akshaya Agri was founded with an equity stake of 18 crore from family members and associates. Presently, the company employs 35 people in supply management, engineering marketing and operations as well as finance and other departments.
Deep Dealer Networks
Akshaya Agri’s plan to revolutionize agriculture using technology is achieved through the B2C and B2B channels. In essence, it focuses in creating an dealer network that supports the operations of the company. It doesn’t directly offer services.
“These dealers as well as their teams are certified on every piece of equipment we are planning to launch on the market as element of the Go to Market Strategy,” Sathish says. Sathish. Additionally, they are also accountable for the after-sales service that includes customer support, installation and parts support throughout the lifespan of equipment.
Each dealer is associated with the same number of farmers. Farmers are able to lease Akshaya Agri’s equipment from the dealers. The cost of renting equipment are decided by dealers. At present, Akshaya Agri has a dealer network of 17 and is planning to sign 16 more dealers by the end of October.
One-stop solution
Akshaya Agri has solutions that cover every aspect of farming, ranging from the preparation of land until harvest. Its range includes three products: NETRAA, AKSHAYA combines, and the VAJRAA brand of mechanisation for agriculture.
NETRAA is a connection device that lets users control different actions of the tractor as well as the harvester using a mobile app. It is a 3-year contract. As per Akshaya Agri the company, about 30 tractors are operating on NETRAA services. They will also bring another 2,000 tractors online within the coming 10 months.
For the preparation of land, this is the area where VAJRAA is available. VAJRAA is equipped with the plough as well as a rotary tiller and cultivator. It aids farmers in get mechanized farming.
In the stage of harvest, Akshaya Agri has recently unveiled an AKSHAYA Combine Harvester. A mix of lending farming services as well as subscription models is how the company earns its money.
It costs between Rs 80,000 and 110,000 rupees in VAJRAA services, ranging from 11 lakh to 14 lakhs for harvesters as well as between the price of Rs 13000 and 15000 for NETRAA services. This serves as its B2C business unit. Akshaya Agri says it has sold more than 100 pieces of equipment to dealers.
The company claims to have reached more than 1 lakh farmers through its assistance. The company also recorded the equivalent of Rs 1 crore in B2B sales for the most recent fiscal year.
Akshaya Agri has also established an R&D center in Toopran close to Hyderabad with an investment of the sum of Rs. 8.10 crore. It has also put up at least Rs. 2.95 crore for product development. This has helped reduce the cost of creating big equipment down to under one year.
Road ahead
For the next four years, the company will be focusing on the markets of Telangana, Andhra Pradesh, Tamil Nadu, Karnataka,
and Maharashtra. It is currently selecting distributors and dealers for these states.
The cost to hire equipment differs across states and for different types of equipment. It is largely dependent on local conditions, season, the kind of equipment used, as well as costs for fuel. In order to lessen its dependence on other manufacturing sources the company will be looking to establish its own manufacturing unit within over the course of 18 months.
In order to expand its range of agricultural products, in the near term it will include balers, a tool to assist farmers in collecting straws, then bundle them into bundles that can be carried and planted, along with planter services. In addition it’s also planning at incorporating drones into the mix. Drones are expected to assist in the digital mapping of fields and pinpoint areas that require greater focus.
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