Group No. 12

Business PartnersAbhishek

Amit

Sameen

Hafiz

Harrshad

Kashif

EntrepreneurshipDevelopment

Problem…Growing Health Conscious People

Alternative medicine is becoming popular and herbal medicine has become one of the most common forms of alternative therapy [Permanent Cure – Ramdev Baba]

Indian Annual Turnover of Ayurvedic Industry – Rs.35,000millionAnd its growing at 15-20% per annum Indian Herbal Exports - $100 million

Ayurvedic Industry – Dabur, Himalaya, Zandu, Himani, Vicco, etc.

Scarcity of Greenary

Business ModelStrategy

Competitive Edge

SWOT

Management Team

Bull’s Eye…Supplement Companies, Botanical Processors, Plant

NurseriesInitially,

Health, Supplement Industries

From Second Year, Dedicated Professional forProcessor Companies – process, extract active ingredients,

and sell directly to supplement companies.

Challengers…Maxor Agro Allieds, MumbaiVanashree Agrotech, PuneReddis N P International, HyderabadRainbow International, GujaratApara International, MumbaiSwaraj Herbal Plants, LucknowS. J. Herbal & Health care, BangaloreKamal Nursery, HowrahG. Tradex, MumbaiDeshmukh Farm, Mumbai

Financial Projections – Pricing

Plants Area Allotted Quantity Selling Price/Plant

Tulsi 2 Acres 6500 10-50

Aloe Vera 2 Acres 6000 25-100

Ashwagandha 2 Acres 6000 50-100

Sarpagandha 2 Acres 5000 100-200

Asparagus 2 Acres 4000 100-125

Financial Projections – Profit & Loss Account

(Figures is Rs. Lakhs) 1 Year 2 Year 3 Year

Sales 2500000 3500000 5000000

Cost of production 700000 1000000 1500000

Gross Profit 1800000 2500000 3500000

       

Expenses 1174000 1412000 1653000

Depreciation 81400 73260 65934

       

Sub Total Expenses 1255400 1485260 1718934

       

EBIT 544600 1014740 1781066

       

Interest 54000 42000 30000

Net Profit 490600 972740 1751066

Financial Projections – Projected Income

StatementFigures in Rs. Lakhs 1 Year 2 Year 3 Year

Income      

Sales 2500000 3500000 5000000

Total 2500000 3500000 5000000

Cost of Production 700000 1000000 1500000

Gross Income 1800000 2500000 3500000

     

Fixed costs      

Insurance 25000 25000 25000

Advertising and Promotion 54000 70000 90000

Stationary 10000 12000 18000

Employee salaries/wages 400000 480000 550000

principal amount repayment 200000 200000 200000

Pesticide 100000 130000 170000

Transportation 100000 120000 130000

Electricity 120000 150000 180000

Manure  150000  200000 250000

Total 1159000 1387000 1613000

Financial Projections – Projected Income

Statement (contd.)

Variable Costs      

Office Overheads 10000 15000 25000

Miscellaneous 5000 10000 15000

   

Total 15000 25000 40000

     

Total Costs 1174000 1412000 1653000

     

Cash Flow from Operations 626000 1088000 1847000

Less Depreciation (@ 10% of current assets) 81400 73260 65934

   

EBIT 544600 1014740 1781066

     

Interest @ 6% 54000 42000 30000

Net Profit   490600 972740 1751066

Financial Projections – Cash Flow Statement

Figures in Rs. Lakhs)        

1 year 2 year 3 year

Income

Sales 2500000 3500000 5000000

Accounts receivables (20%) 0.00 200000 250000

Total 2500000 3700000 5250000

Cost of production 700000 1000000 1725000

Cash received 1800000 2700000 3500000

Expenditures  

Fixed Cost 1159000 1387000 1613000

Variable cost 15000 25000 40000

Accounts Payable (10% on cost of products) 70000 100000 150000

Cash Spent 1244000 1512000 1803000

Cash Flow   556000 1188000 1697000

Financial Projections – Sales Forecast Break-Even Analysis

Year 1 Year 2 Year 3 Year

Net Profit490600 972740 1751066

Total Investment – 15 lakhs

From projected Profits, the investment will recover in 3 years.

Earnings in 3 years – Rs. 1751066 lakhs

Earnings per month------------------------------------------ -= 1751066/12 = 145922

Remainder investment from Year 2 -------------------------= 1500000 – 972740 = 527260

Months in year 3 to recover remainder investment-------- = 527260/145922 = 3.6 months

Hence, Break Even point will reach at 2 years and 4 months.

Funds… (In Hand & In Need)

Current Status: 6 lacs (all the partners are investing

1 lac each)Amount of Money Requested: 9 lacs

Futuristic Expansion…There are many herbs we would like to add up to our business:1. Adhatoda vasica (Vasaka, Ardushi),

2. Aegle Marmelos (Beal),

3. Allium Sativum (Garlic),

4. Andrographis paniculata (Kalmegh),

5. Asparagus Adscendens (Safed Musli),

6. Asphaltum (Shuddha Shilagit),

7. Azadirachta Indica (Neem Leaf & Kernel),

8. Bacopa Monniera (Nir Brahmi),

9. Boerhaavia Diffusa (Punernava),

10.Boswellia Serrata (Salai Gum, Sallaki),

11.Cassia Fistula (Amaltas, Garmalo),

12.Cedrus Deodara (Devdhar),

13.Centella Asiatica (Mandukaparni, Bhrami)

Core Corners…But, why should you invest???

Monetary Profits – Primary Benefits

Cure to Mother Earth – Moral Benefits

Thank you…