2014年-世界发展银行全球_Agribusiness_Incubator_at_ICRISAT___India_Case_Study_14页_1mb

Agribusiness Incubator at ICRISAT - India Case Study Summary

Core Content

The Agribusiness Incubator (ABI) at ICRISAT in India is a case study that highlights the successful integration of agricultural research and business development. It was established in 2002 through a partnership between the Indian government and ICRISAT, a CGIAR member organization. The incubator has since evolved into a model for other agribusiness incubators, particularly in Africa, and has become relatively independent of its original founders.

Main Points

Background

• ABI was founded in December 2002 by ICRISAT and the Department of Science & Technology (DST).
• It received initial funding of about $500,000 from DST.
• The incubator was created to address two key issues:
  1. Disconnection between public sector R&D and market demands.
  2. Lack of lasting relationships among research, technology development, transfer, and use sectors.

Strategic Vision and Mission

• Vision: Agricultural prosperity through innovation, entrepreneurship, and partnerships.
• Mission: Improve the lives of the poor by creating competitive agribusiness enterprises that develop and commercialize new technologies.
• Targets (2011-12 to 2013-14):
  • Technologies: 60 → 80 → 100
  • Enterprises supported: 35 → 50 → 70
  • Farmer Impact: 100,000 → 200,000 → 500,000
  • Consultancy: 8 → 12 → 16
  • Scientists engaged: 15 → 15 → 20

Distinctive Features

• Embedded in ICRISAT: A world-renowned research center.
• Technology Focus: Specializes in agricultural technologies.
• Broad Client Base: Serves small farmers, MSMEs, and advanced biotech firms.
• Tied to Indian Policies: Aligns with national development goals and institutions.

Primary Strengths

• Location in a dynamic entrepreneurial environment with supportive policies.
• Access to highly educated and experienced professionals.
• Proven success over the first 10 years of operation.
• Strong network and partnerships with key national and international institutions.

Primary Weaknesses

• Limited flexibility due to the broader objectives of ICRISAT.
• Cultural and institutional differences in negotiations.
• Branding dependent on ICRISAT affiliation.

Management Strategies

• Independence: ABI is already financially independent and aims for full autonomy.
• Incentives: Offers incentives to researchers to engage in business activities.
• Expansion: Plans to expand to Africa and form partnerships with local organizations.

Networks and Partnerships

ABI has formed key partnerships with the following organizations:

• Technology Development Board (TDB): Provided seed funds.
• National Science and Technology Entrepreneurship Development Board (NSTEDB): Initial financial support.
• Technopreneur Promotion Program (TePP): ABI is an outreach center.
• Indian Council of Agricultural Research (ICAR): Responsible for mentoring ten incubators.
• Micro, Small and Medium Enterprises - Development Organization (MSME-DO): Supports SMEs and agribusiness through incubation.

Co-Business Incubation

• ABI collaborates with other incubators and organizations to enhance support for entrepreneurs.
• Partners include IIAM (Mozambique), AREU (Mauritius), TNAU (Coimbatore), and STEP (Thapar University).
• It has played a key role in the development of the Network of Indian Agri-Business Incubators (NIABI).

Approach to Incubation

• Core Services:
  • Technology consulting and transfer.
  • Capacity building and training.
  • Business facilitation (pre-feasibility studies, market research, networking).
  • Access to funding through partnerships and national programs.
• Service Strategy:
  • Focus on five categories: Seed ventures, Biofuel ventures, Innovative ventures, Farm ventures, Agri-biotech ventures.
• Outreach Strategy:
  • Global partnerships to promote business incubation.

Institutional Setup

• ABI is part of the Agribusiness Innovation Platform (AIP), a public-private partnership.
• It reports to the Standing Advisory Committee (SAC), composed of three internal and three external members.
• Leadership has been consistent with key figures in ICRISAT and AIP.

Business Model

• Revenue Sources: Membership fees, consultancy, marketing services, event management.
• Financial Independence: Achieved self-sufficiency since 2007.
• Future Model: Plans to shift to a capital-gains model based on intellectual property and equity sharing.

Staffing and Leadership

• Staff has grown from 3 to 11.
• Leadership is provided by:
  • COO: Strong business background.
  • CEO of AIP: Renowned scientist and biotech manager.
  • DG of ICRISAT: Strategic direction and overall guidance.

Outcomes and Results

• Incubated 29 enterprises, with 7 graduating.
• Enterprises generate average annual sales of $1–$3 million.
• Awards and recognitions:
  • National Award for Best Incubator (2005)
  • AABI Award (2008)
  • FAAPCCI Award for Rural Development (2006)
• Promoted technology adoption, including:
  • Ethanol production from sweet sorghum.
  • Biofermentor technology.
  • Commercialization of ICRISAT varieties.
• Generated $13 million in increased farmer profits.
• Enhanced convenience for farmers with mobile-based services and tools.
• Created 832 new rural jobs.
• Promoted a new approach to CGIAR for bridging research and farm use.

Future Goals

• Consolidation of Co-Incubator Role: Replicate ABI's model across India to create a dense network of incubators.
• Expansion to Africa: Initiated co-incubation in sub-Saharan countries.
• Value-Chain Integration: Work with biofuel and seed companies to create integrated value chains.
• Expansion within CGIAR: Promote the Global Agribusiness Initiative (GABI) across the system.

Critical Success Factors

• ICRISAT's commitment to connecting research with farmers.
• Strong partnerships with national institutions.
• Anchor in ICRISAT's scientists and technologies.
• Clear focus on innovative ideas with market potential.

Lessons Learned

• Bridging Research and Farmers: ABI offers a replicable model for CGIAR centers.
• Partnerships with National Programs: Crucial for growth and sustainability.
• Incubating Incubators: The co-business incubation model has proven effective.
• Business Model Shift: Moving from revenue generation to capital gains based on IP and equity sharing.

References

• Goletti, Francesco. 2011. Background Case Study: Agribusiness Incubator at ICRISAT. Agrifood Consulting International (ACI) and Economic Transformation Group (ETG) for infoDev, Bethesda.

Contacts

• Agribusiness and Innovation Platform (AIP)
  ICRISAT, Patancheru, Andhra Pradesh 502 324, India
  Phone: +91-40-30713419
  Fax: +91-40-30713074/75
• SM. Karuppanchetty, COO
  Email: karuppanchetty@CGIAR.ORG
  Mobile: +91-9866396443