Based in the milk capital of India, Anand (Gujrat), Shree Kamdhenu Electronics Private Limited (SKEPL) is a company focused on producing technological solutions for the dairy sector such as electronic weighing scales, milk content analyzers, accounting software and Automated Milk Collection Systems (AMCS) that help village-level dairy cooperatives grow their income through increased transparency in the production, pricing and sales cycles.
SKEPL’s AMCS product is extremely revolutionary in improving the operations and increasing the income of farming cooperatives. Unlike traditional quantity and quality measuring techniques, an AMCS machine is able to accurately measure crucial variables within seconds in front of the farmer, ensuring he/ she is paid for every drop of milk that is brought to the cooperative.
In 2010, GBF committed $388,786 in SKEPL to aid in its expansion to other regions within India. GBF’s investment also allows SKEPL to market and finance the sale of its products to village cooperatives that cannot afford SKEPL products.
GBF BAS & SKEPL:
Through the partnership with GBF, SKEPL has received targeted Business Advisory Services (BAS) that propelled the company’s ongoing expansion to international markets, as well as the introduction of new product line. Some of the BAS programs focused on:
Financial Management: Refining SKEPL’s financial management practices for more accurate reporting and forecasting
Operations: Connecting SKEPL with research institutions and key stakeholders in the industry to provide SKEPL with access to new technical expertise and technological facilities
Strategy: Creating an expansion plan for the company capturing product portfolio and market expansion
Corporate Governance: Facilitated consulting services from one of India’s most respected dairy experts
To date, GBF’s investment has allowed SKEPL to service 40% of the farming cooperatives in Gujarat and a larger percentage in other states that would not be able to afford the technology systems without financing. GBF’s Portfolio CFO in India has worked with SKEPL to achieve a steady financial performance. In 2014, SKEPL recorded its highest sales and profitability since inception. Additionally, The company’s topline has grown 2.6 times since GBF’s investment.
- This past year, SKEPL expanded their service offering to an additional 668 cooperatives reaching a total of 4,868
- After installing SKEPL’s AMCS the amount of milk sold to the dairy collection center increased by 88%, resulting in an automatic increase in income for smallholder farmers
- SKEPL’s products have generated over $800K in Annual Income/Costs Savings
- After installing SKEPL’s AMCS, 73% of dairy farmers increased the number of animals they owned; many of these farmers did not own any animals prior to the installation of SKEPL’s computerized milk collection system
- SKEPL’s time-saving AMCS reduces the risk of lost income from wasted milk, and increases transparency into the entire process for farmers
- Local surveys show that dairy farmers experienced a 40% increase in income immediately after SKEPL’s systems were installed
- SKEPL generates economic impact for over 520,000 farmers by increasing the share of dairy production revenue that they receive
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