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Risks & Mitigation

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Building with Realism, Responsibility, and Resilience

Project Sampada acknowledges that agri-processing initiatives—especially in underserved regions—carry inherent risks. Rather than ignoring them, the project is designed around early identification, controlled exposure, and structured mitigation.

This approach enables steady progress while protecting partners, beneficiaries, and capital.

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1. Raw Material Supply Risk

Risk:
Seasonal fluctuations, weather events, or market volatility may affect the availability and price of tomatoes and bananas.

Mitigation Measures:

  • Focus on crops with high local availability (tomato and banana)
  • Diversification across two crops to reduce seasonality dependence
  • Advance procurement planning during peak seasons
  • Local sourcing within defined catchment areas
  • Gradual scale-up of capacity aligned with supply realities

2. Market & Price Risk

Risk:
Fluctuations in domestic or export market demand and pricing for processed products.

Mitigation Measures:

  • Initial focus on basic, high-demand products (purée, paste, powder)
  • Conservative pricing assumptions in financial planning
  • Avoidance of speculative or niche product lines in STEP Phase
  • Emphasis on bulk and institutional buyers
  • Gradual entry into export markets after domestic validation

3. Operational & Execution Risk

Risk:
Challenges in managing operations, quality, logistics, and manpower during early stages.

Mitigation Measures:

  • Operator Model with JJJKAS retaining managerial control
  • Employment of trained ex-servicemen in supervisory roles
  • Standard Operating Procedures (SOPs) for all operations
  • Phased commissioning of equipment
  • Continuous on-ground oversight during STEP Phase

4. Human Capital & Skill Risk

Risk:
Limited availability of experienced agri-processing operators in Bihar.

Mitigation Measures:

  • On-the-job training and supervised operations
  • Structured capacity-building programs
  • Performance-linked contracts for operators
  • Motivation and leadership support aligned with Art of Living principles
  • Transition pathway from operator to entrepreneur over time

5. Financial & Cash Flow Risk

Risk:
Delayed fund releases, working capital pressure, or initial revenue gaps.

Mitigation Measures:

  • Annual statutory audit by a qualified Chartered Accountant
  • Conservative budgeting with contingency buffers
  • Limited reliance on debt in early stages
  • Provision for a small revolving fund for operational stability
  • Clear separation of capital expenditure and operating expenses
This dimension is inspired by the proven experience of The Art of Living (AOL) in motivation and life-skills development, subject to formal collaboration.

6. Compliance & Regulatory Risk

Risk: 
Delays or challenges related to FSSAI compliance, statutory approvals, or certifications. 

Mitigation Measures: 

  • Early integration of FSSAI norms into facility design
  • Dedicated quality and compliance oversight
  • Documentation and traceability systems from day one
  • Engagement of qualified consultants where required

7. Infrastructure & Location Risk

Risk: 
Delays in BIADA allotments, utilities, or physical readiness of sites. 

Mitigation Measures: 

  • STEP Phase initiated only after confirmed allotment
  • Modular and movable equipment where feasible
  • Conservative timelines for commissioning
  • Buffer periods built into implementation plans

8. Governance & Reputational Risk

Risk:
Perception risks related to fund utilisation, transparency, or stakeholder trust.

Mitigation Measures: 

  • Strong governance structure under JJJKAS
  • Ring-fenced project accounts
  • Periodic financial and impact reporting
  • Independent audits
  • Clear communication with all partners

9. Scaling Risk

Risk: 
Over-expansion before operational and financial stability is achieved. 

Mitigation Measures: 

  • No scale-up without successful STEP Phase outcomes
  • Expansion only after third-party validation
  • Replication based on proven templates
  • Disciplined capital deployment

A Conservative Model by Design

Project Sampada is intentionally not aggressive in its assumptions or timelines. Growth is treated as a reward for discipline, not a goal in itself. By proceeding cautiously, learning continuously, and adapting pragmatically, the project seeks to build durable institutions rather than short-lived interventions. Shape

Partner Confidence

For CSR partners and foundations, this risk-aware approach ensures:
  • Capital protection
  • Predictable execution
  • Measurable outcomes
  • Long-term sustainability
Risk is not eliminated—but it is managed responsibly.
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Project Sampada – Empowering Bihar’s agri-export transformation, one entrepreneur at a time.

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