Linking Small Producers to Markets

An Opportunity to become a Member - cum - Owner of the Company...

ESAF Swasraya Producers Company Limited (ESPCL) is promoted by ESAF (Evangelical Social Action Forum). ESPCL empowers small rural producers of Handicrafts, Herbal Products, Agri-Food, Dairy and Meat Products, in capacity building, production, value addition, quality assurance and marketing.

What is a Producer Company?

Enhancing livelihoods of small producers below poverty line has unique challenges. It requires capital and knowledge infusion from outside to enhance production as well as increased linkages with external markets. However, markets are often situated far away from the villages where the small producers stay. There is a need for aggregation, sharing services and absorbing price risks leading to the necessity of promoting sustainable producer organizations.

Small producers, so far have been brought together by registering as co-operatives. However a need was felt to transform them into more professional organizations. Thus the new concept of Producer Companies was born based on the recommendations of an Expert Committee led by noted economist Prof Y K Alagh. Producer Companies came into existence in 2003 with the amendment of section 581 of the Companies Act 1956.

Producer Company is special as it offers in terms of maintaining the member-ownership nature of a Co operative and the structural advantage of a Company. It offers a way forward for poor producers to establish themselves as market entities, operating on social principles with out compromising on business credibility. Producers can organize themselves on one person – one vote principle, the true essence of a democratic institution.

How Unique are Producer Companies?

• A Producer company is a Private Institution of members focused on Business. The company can do business or business related activity in any part of the country.
• Registered as well as Non-Registered groups (such as Self Help Groups or User Groups) can become members of a producer company.
• It is a Member – controlled organization. Members’ interests are well protected. Board elections are conducted by company members.
• Outsiders can not capture control of these companies. In other words, the Act permits only “Primary Producers and Persons or Associations connected with the primary producers” to participate in the ownership of the company.
• “Patronage” based participation in governance of the company. From the surplus generated by the company, a “Patronage Bonus” can also be distributed to the members in proportion to their patronage besides “Dividend”.
• Freedom to promote New Initiatives, Alliances, Subsidiaries, Joint Ventures etc.

How to become members (share holders) of ESAF Swasraya Producers Company?

• Equity Shares have a face value of Rs 10/- per share. Apply to the Board of Directors in the prescribed application form showing the number of shares required. Minimum shares offered are 1000 numbers.
• Societies, Registered or unregistered Self Help Groups or User Groups shall nominate an office bearer to apply for the shares and participate in the meetings of the company thru a power of attorney signed by all the members.
• The Share Certificates will be issued by the Board duly signed by the Chairman.

Who can invest in ESAF Swasraya Producers Company?

Producers or Producer Institutions in the following sectorscan invest in ESAF Swasraya Producers Company.

• Handicrafts and Handlooms.
• Herbal and Medicinal Plants.
• Agricultural Produces.
• Food products.
• Dairy Products.
• Meat Products.

ESPCL is not a one-product company but diversified into.

• Handicrafts (brand: Prerana).
• Agri & Herbal (brand: Amruth).
• Dairy, Food & Meat.

Vision:

A just & fair society through sustainable holistic transformation of poor and the marginalized.

Mission:

Assure quality, add value & link producer members to market.

Goal:

Build a sound financial base and an assured forward integration for company and enhance Livelihoods of producer members with higher returns.

Objective:

Targets Rs 50 Lakhs Capital through equity, grant & debt by Dec ‘08 end and to handle business worth Rs 165 Lakhs by Mar ‘09 end through Prerana, Amruth & Agri divisions.

for further details log on to www.preranahandicrafts.com