MULTICROP HORTICULTURE PLANTATION
Patchouli Aromatic Plant - Mangoes - Sapota - Grapes
Patchouli: We propose to produce about 2000 tons Patchouli dry bio mass annually. Supply Patchouli dry bio mass to Patchouli oil manufacturers at a price of USD 425 per ton. Total dry bio mass requirement of oil manufacturing companies is 50,000 tons annually, value exceeding USD. 21 millions.
OTHER PRODUCTS: We are going in for perennial multicrop horticulture plantation, ranging from life span of 3 years to 100 years, yielding annually, biannually and triannually. The yield is purchased by the market in its natural form for consumption, sold to processing industries and exporters. We have multi million retail chains operating in Karnataka & Andhra Pradesh, sourcing fruits & vegetables from Karnataka. They have their collection centers in important locations in Bangalore.
Facts
2003
| Two years ago: | |
| Last year: | |
| This year (forecast): | 776,000 |
| Year 2 (forecast): | 1,172,000 |
| Year 3 (forecast): | 1,172,000 |
| Two years ago: | |
| Last year: | |
| This year (forecast): | 548,000 |
| Year 2 (forecast): | 945,000 |
| Year 3 (forecast): | 945,000 |
| Two years ago: | |
| Last year: | |
| This year (forecast): | 1000 |
| Year 2 (forecast): | 1200 |
| Year 3 (forecast): | 1500 |
Finance needed
| Finance needed for fixed assets (buying of machines, buildings, ...) | 150,000 |
| Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) | 1,200 |
| Total finance needed (US$) | 151,200 |
How do you expect this to be financed?
| Own Contribution in cash | |
| Loans (debt) | 4,000,000 |
| Shares in your company that you offer to investors (equity) | |
| Other sources | |
| Total finance needed (US$) | 4,000,000 |
The Business
Patchouli is an aromatic plant required for producing Natural Essential Oils. The oil is imported from Indonesia. But in certain areas of Karnataka and in some parts of India it can be cultivated thereby benefiting farmers as well as oil manufacturers in India by meeting their requirement of Patchouli raw material. Thus it is import substitution saving foreign exchange for the Government. Patchouli dry bio mass is supplied to Patchouli oil manufacturers at a price of USD 425 per ton, farm gate price. We propose to produce about 2000 tons Patchouli dry bio mass annully. Total Patchouli dry bio mass requirement of oil manufacturing companies in India is 50,000 tons annually, value exceeding USD. 21 millions.
OTHER PRODUCTS:
We are going in for perennial multicrop horticulture plantation, ranging from life span of 3 years to 100 years, yielding annually, biannually and triannually. The yield is purchased by the market in its natural form for consumption, sold to processing industries and exporters. We have multi million retail chains operating in Karnataka & Andhra Pradesh, sourcing fruits & vegetables from Karnataka. They have their collection centers in important locations including Bangalore.
The production cost is less than the selling price and we generate profits from the first hear of operation.
We have the know how and technology to propogate, cultivate and post harvest management.
We require land, infrastructure, farm mechanization equipment and tools
We will be requiring about 1000 farm labour, skilled and unskilled directly employed. Besides there will be indirect employment generated.
In and around Bangalore has the necessary conditions to successfully implement our multicrop horticulture plantation project. Our products will be sold all over India to the already existing and assured market.
Being an agriculture venture, all we need is the land & infrastructure. We produce our plant material in our Plant Nursery. The fertilizers, manures, pesticides etc. are purchased from manufacturers directly as per our standards and specifications. We also propose to manufacture our own Compost.
We produce the quality of raw material tested and approved by our buyers.
The customers come to our place of production and buy the goods because the demand exceeds the supply.
We do not require promotional tools as no marketing is involved in our business. We produce what the buyers want.
There are no competitors in our business as the supply is less than the demand. Further the investment required is huge based on the scale of finance fixed by NABARD. NABARD also provide refinance to the banks who fund this type of project. With out the funding by an investor/institution, this projected cannot be implemented.
The price we get for our produce is higher than the cost of production and hence, profitable.
Our produce is better because, we have the know how and technology, produce meeting the requirement of buyers, producing in the organized sector applying modern technology and management principles.
Because our product is import substitution and manufactured as tested and approved by the buyers. Secondly, the product is in short supply.
The Entrepreneur & Management
Experience: We have five years experience and expertise to cultivate Patchouli and other horticulture produce. We are into contract farming and providing know how to the farmers in different parts of Karnataka
We have been making profits from the day we started business, and last 3 years balance sheets available
Development
Provide direct employment for 1000 rural labour.
There is only direct income
Implementation of the project will provide regular work and income because of which there will be improvement in the living standards of labour, many of whom are at present living below poverty line.
We propose to implement certain welfare activities covering housing, education & health.
The project is a long term planning extending beyond 10 years because of the perineal pattern of yielding.