Environmental Review Summary
Project Number
11230
Company Name
MAHINDRA AGRI SOLUTIONS LIMITED
Date ERS Disclosed
Apr 3, 2002
Country
India
Region
South Asia
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Sep 12, 2002
Signed : Mar 27, 2003
Invested : Aug 18, 2003
Sector
Other
Industry
other
Department
Regional Industry - MAS Asia & Pac
Project Description
Mahindra ShubhLabh Services Limited (MSSL) is a subsidiary of Mahindra & Mahindra Limited (M&M, or the sponsor), India''s largest farm equipment company.
The objective of MSSL''s business model is to improve farming profitability and sustainability by increasing agricultural yields, and reducing production costs and chemical pest control dependency. Current less-than-optimal production in India is attributable to the failure to integrate quality agriculture inputs, scientific farming techniques, mechanization, and finance. Indian farmers do not trust existing input distribution channels because of the prevalence of poor business practices and spurious products. The public extension system''s reach is limited and the contribution of the private sector is typically motivated by the sale of specific products. MSSL''s intention is to become an agent for change in Indian agriculture through an integrated approach that will provide unbiased solutions oriented to individual farmer success. Moreover, the project will benefit the health and well being of farmers and the environment by promoting integrated pest management (IPM), non-chemical methods and informed management of chemical products.
MSSL will develop 180 Agricultural Service Centers (ASC) over a period of 4 years, the majority of which (169) will be franchises. Each ASC system will consist of the hub ASC and a number of related kiosks (spokes). Each ASC will be able to provide farmers with: (i) appropriate inputs (seeds, fertilizers, chemicals); (ii) rental equipment; (iii) information (agronomic practices, market information); (iv) contractual farm-input-application and advisory services, and (v) access to crop finance from commercial banks all under a one-stop-shop concept.
The objective of MSSL''s business model is to improve farming profitability and sustainability by increasing agricultural yields, and reducing production costs and chemical pest control dependency. Current less-than-optimal production in India is attributable to the failure to integrate quality agriculture inputs, scientific farming techniques, mechanization, and finance. Indian farmers do not trust existing input distribution channels because of the prevalence of poor business practices and spurious products. The public extension system''s reach is limited and the contribution of the private sector is typically motivated by the sale of specific products. MSSL''s intention is to become an agent for change in Indian agriculture through an integrated approach that will provide unbiased solutions oriented to individual farmer success. Moreover, the project will benefit the health and well being of farmers and the environment by promoting integrated pest management (IPM), non-chemical methods and informed management of chemical products.
MSSL will develop 180 Agricultural Service Centers (ASC) over a period of 4 years, the majority of which (169) will be franchises. Each ASC system will consist of the hub ASC and a number of related kiosks (spokes). Each ASC will be able to provide farmers with: (i) appropriate inputs (seeds, fertilizers, chemicals); (ii) rental equipment; (iii) information (agronomic practices, market information); (iv) contractual farm-input-application and advisory services, and (v) access to crop finance from commercial banks all under a one-stop-shop concept.
