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‘Tally lent us the ability to operate from multiple locations’

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Established in 1995, NRC Agro is one of the leading fruits and vegetables suppliers in India and even exports worldwide. The company’s efficient supply chain management and strong logistic support have enabled it to process and deliver on time. Ram Mohan, owner, NRC Agro elucidates on how adopting Tally helped grow his agro business By Steena Joy

What is NRC Agro’s market share in South India?

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Ram Mohan

It would be difficult to quantify our share, because the agri market is very big and NRC Agro is only a one-city operator selling a specific range of vegetables. On an average, we transact 40 MT of vegetables daily, whereas the daily transaction in Chennai is 3500 MT of vegetables, on an average. But in respective product categories like green chillies, capsicum, cucumber, green peas etc, we are in a dominant position to initiate prices on day-to-day basis.

How has the implementation of Tally helped grow your business?

We were one of the earliest adopters of Tally in Chennai, the first implementation being in 1991. Currently we use Tally.Server 9 and Tally.ERP 9 for all MIS requirements like customer, supplier, stocks, cash/bank balance, bills-to-pay and bills-to-receive and profitability analysis. Additionally, we also use a Tally.Server 9 based TDL customisation to cater to niche requirements related to our business, and thus enhance our business performance further.

We handle up to 40 MT of fresh vegetables daily, and recording the arrival of each item from different farmers and suppliers and then distributing to customers spread across the city is a challenging task. If we were to manually manage similar volumes, we would require a team of five qualified accountants, at a minimum, along with an additional audit to cross check for accuracy and authenticity.

With the implementation of Tally (Tally.ERP 9 and Tally.Server 9), we are able to account daily stock received and sold, and payable and receivable are also managed efficiently. Cash and bank are all tallied and verified and posted on a day-to-day basis. All these functions can now be performed at higher speeds, with greater consistency and at an affordable price. This has led to an increase in our quantity, and has lent us the ability to operate from multiple locations (data sync helps in online data always), zero cash and stock shortage, better collection of receivables and proper accounts verification of all suppliers.

What new products are you looking at?

Some of the new products we are using currently include Tally in Mobile version, SMS and improved email facility, to be in sync with customers.

What do you think of the agro business segment in India? How much is it expected to grow in percentage terms?

Horticultural data for India is not quite accurate, and the dynamic scale of production makes is such that it is difficult to quantify it. Also, the production pattern changes every season based on pricing trends in the market. Even though cultivatable land is shrinking, cultivation is happening at par with the growing population’s requirement. On an average, we see eight to 12 per cent growth in real terms in the market. But farmers react to price fluctuations in the next season, for instance growing more if prices have been very good and growing less if prices were very low.

How has the coming of international hospitality brands into India helped India’s agro industry?

Not much. While the agro-based processing industry has seen some changes, the fresh category segment is yet to see deep traction.

Your comments on the organic industry in India? Do you think price is a hurdle to consumer acceptance?

It is still at a very nascent stage. Prices are a barrier, and production is very low. To counter the perception that organic vegetables are high-priced, awareness has to be created among the users and public.

Do you sell organic produce? If yes, how has the hospitality industry in India responded to such products?

No, we don’t sell organic vegetables as we have not seen a big demand or supply for the same at the moment.

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