Author: Tapash Talukdar & Ashish Agashe
Publication: The Economic Times
Date: May 15, 2009
Introduction: Pandurang Taware is reaping
rich from his agri tourism model
For Pandurang Taware, being a son of the soil
takes on a very literal and personal meaning. Born into a farmer's household,
he chose to pursue a professional career in tourism instead. Seventeen years
later, Taware made up for lost time and returned to start a business that
combined his tourism experience with his entrepreneurial passion and a desire
to connect with his roots. Today, the 39-year-old chief of the Agri Tourism
Development Corporation has carved out a niche for himself by pioneering the
concept of agri-tourism in India. Since he started this business four years
ago, nearly 50,000 guests have flocked to his farms in Baramati, Maharashtra
to spend a holiday, and learn a thing or two about rustic living.
Taware struck upon this idea in 2000 and spent
another five years to give it a formal shape. "The most important part
was to understand the psyche of the urban guest and teach soft skills to the
farmers so that they could serve guests better," he says. A market research
firm was hired to poll over 5,400 respondents in cities on their readiness
and interest in such an idea. Once the concept and business model were ready,
Taware took the plunge.
A sum of Rs 10 lakh Taware had saved in his
job, was ploughed-in as seed capital for the business, which began operating
out of a farm in his hometown Baramati in Maharashtra's Pune district. Initially,
Taware and his family fully owned the business. Later, the farmers on whose
land the business expanded, were offered equity in the venture. The business
achieved break-even in the first year and has now grown to three sites in
the vicinity of Baramati. It has served over 48,000 tourists until now, doing
business of over Rs 1.5 crore with 25-28% in gross margins. "The best
part about this business is that we do not spend much on creating infrastructure.
Guests pay us to have a look at our farms and how they function," says
Taware.
At Rs 500 to Rs 2,000 per person per night,
guests get to experience activities like milking a cow, plucking fruits from
trees with farmers, visiting fields of various crops like sugarcane and millets
(depending on the season), visiting a jaggery-making unit, wineries, swimming
in a pond or bathing near the well or a visit to a silkworm rearing farm.
Adding to the fun is traditional food and a folk arts show comprising of music
and dance in the evenings.
Yet, Taware says, the most exciting side of
the business is its social aspect. Farmers who solely depend on one or two
crops a year for sustenance, get a supplementary income. "This is an
attempt to make a living in the countryside more sustainable for a farmer
so that his future generations are not forced to migrate to urban areas for
livelihood," says Taware.
However, ATDC is different from other businesses
in one respect. "A farmer will not be able to carry out his daily chores
if the guests exceed a certain number. In such cases, we open a newer site
for operations. Our idea is clear: the tourism business is supplementary and
a farmer must get a majority of his revenues from his core activity. If he
doesn't, we will be doing injustice to our guests. We do not want to function
like a resort."
Being a fore-runner in this model, Taware
has been invited to present his concept at leading institutes such as the
Institute of Rural Management, Anand (IRMA) and has already taken over the
mantle of increasing the footprint of the business. As the concept requires
land holding that is upwards of five acres, Taware got groups of farmers to
come together and start co-operatives. So far, Taware has been successful
in forming seven such agri-tourism focussed co-operatives and led the launch
of the Maharashtra State Agri and Rural Tourism Cooperatives Federation (MART),
an apex body, this year. Besides Baramati, MART affiliated members operate
at 72 dedicated sites across Maharashtra, which has benefitted over 300 farmers.
Now, farmers from Punjab and Gujarat are also replicating the model after
a visit to ATDC.
The way ahead for ATDC, Taware says, is to
expand into arid regions like Madha situated close to Baramati so that people
of the backward region also benefit from the indigenous model. As for MART--whose
affiliates registered a turnover of Rs 30 crore collectively last year--efforts
are on to take the total number of sites to 250 by 2010.
