Siffco Agro Chemicals Ltd

By: Group 07
Basavannevva
Kumar
Nagaraj
Ranjita
Roopa
Kousali institute of management studies Dharwad
Agriculture sector in India
It is the primary activity of the
country.
More than 65% of the population
working under agriculture and allied
activities.
India exported $39 billion worth of
agricultural products in 2013.
And contributes 17% of the GDP.
Indiaranks secondworldwide in farm
output.
 Characteristics of Indian formers
price conscious.
prefer products of medium quality
but high in durability.
Buys products in as small a quantity
as possible
Visits their nearest mandi (market)
may be once a week or so to make all
the essential purchases.
 The Case
SACL US-based pesticide company.
Planning to enter the Indian market.
Scope for the growth in this sector is
considered to be tremendous.
Production plant is to be near Mumbai.
Company is pondering over the needs
of a distribution system to cater the
needs.
 Challenges
Lack of infrastructure in rural areas
1) Communication
2) Transport
Competitors have a well developed
distribution network. (Ralliss
India)
It is new to the Indian market
 Competitors (Ralliss India) distribution system

manufactur 9 regional 34 area

26 depots
er offices offices

3000
30,000 dealers Distributers

There are 7,00,000 villages are there in India and according

to the above channel there is an outlet in every 10 15
large villages.
 1) How should the ideal
channel for distributing
pesticides be designed?
List down all service outputs
Develop the levels at which each of the service
outputs have to be offered.
Work back from each of the service outputs levels
and conceive the activities that have to be performed
Calculate the cost incurred
Design the ideal structure
Compare the ideal channel structure with existing
channel structure
Assess the ideal channel design
Develop the channel establishment plan
 2)What are the services output demands of the
farmer?

Pesticides at cheaper rate

Products of medium quality but high in
durability
Reliable service
Pesticides in a small quantity at their nearest
place
Information about loss of crop due to pest
infection
Availability of pesticides with farm related
products
 3) What types of channel flows are to be pesticides to
achieve these service outputs?

Physical possession
Ownership
Promotion
Negotiation
Risk taking
Ordering flow
Payment flow
 4) How can these service output demands be
linked to channel flows?

Ownership of pesticides
Physical possession
Promotion
Financing
Payment
Assortment
Can siffco differentiate itself
by creating an innovative
channel?
Manufacture
r

C&F Agent

Wholesaler/
Distributors

Sales
Agents

Panchay Co-
Mandi
at Operativ
e Society
Village Farmers/custo
Mukhiya mers
Service output delivered template of Ralliss India