Business Model

Turab Capital will identify and invest in processing units that quantify as MSMEs and have a good ROIs. These will act as a "hub" to set up value chain through backward linkages with Micro Finance Institutions like NRSP . NRSP will organize small farmers; give them the right seed so that the product is as per specifications of the processing unit; provide production loans (Micro Credit) and ensure that the product is brought to the processing unit. Pakistan is ranked high as a provider of Micro Finance especially in the Agriculture sector.

The processing unit will pay a "fair market price" to the producer thus eliminating any middle man. The processing unit will deduct the NRSP loan amount due at source. With a high quality product, the processing unit will have an edge over its competitors and sell the processed Agriculture product at a premium because of its quality.

The producer, due to organization and timely access to quality seed and production loans for inputs like fertilizer etc. will be able to increase his/her production per acre. NRSP will get their loans recovered at source and its operational cost will therefore significantly reduced as loan officers will not have to run after their clients for loan recovery. This model which is a win win for all has been tested with sugar cane as described in the window above.