Jagdish.Kantibhai.Patel

PROJECT REPORT

FLORICULTURE CROP

GERBERA

VENTURED BY :

JAGDISH KANTIBHAI PATEL

AT

SURVEY NO.1698,

VILLAGE : LAAGNAJ,

TA.MEHSANA,

DI.MEHSANA,

GUJARAT(INDIA).

PROJECT REPORT PREPARED & COMPILED BY :

ICON FIN-CARE PRIVATE LIMITED

Regd.Offi.:302, Mahakant Complex,

Opp.V.S.Hospital, Ellise Bridge,

AHMEDABAD-380006.(GUJARAT) INDIA.

Ph.(079)26585080. E.Mail : [email protected]

PROJECT REPORT

A. GROWER / ENTERPRENEUR

1 Name and Address JAGDISH KANTIBHAI PATEL

At 63, Asopalav Bunglows,

Nr.Thaltej Gram Panchayat,

Thaltej, Ahmedabad,

Di.Ahmedabad, Gujarat.

others Nil

2 Age of Beneficiery 51 Years

3 Category Other

(SC/ST/OBC/Ex.Service man/Minority/

Physically Handicapped/Others)

(Please specify)

4 Gender Male

B Proposed Project Activity

1 Name of the Project GERBERA PROJECT

2 Location Survey No.1698,

Village:Laagnaj, Ta.Mehsana,

Di.Mehsana,

Gujarat.

3 Details of activity under the proposed

project

a. Are under cultivation

Name of the Crops Area in Sq.Mtrs No.of Plants

GERBERA 4000 27200

b Total Project Cost Rs. 5800000.00

INDEX

SR. PARTICULARS ANNEX.NO. NO.

1 Means of Finance I

2 Highlights of the Project II

3 Project at a Glance III

4 Project Component IV

5 Financial Analysis of the VProject

ANNEXURE

SR. PARTICULARS PAGENO. NO.

1 About Green House

2 About Gerbera

3 Means of Finance

4 Highlights of the Project

5 Project at a Glance

6 Project Component

7 Financial Analysis of theProject

1. Means of Finance

JAGDISH KANTIBHAI PATEL

At 63, Asopalav Bunglows,

Nr.Thaltej Gram Panchayat,

Thaltej, Ahmedabad,

Di.Ahmedabad, Gujarat.

CULTIVATION OF GERBERA UNDER GREEN HOUSE

Location :

GERBERA

Survey No.1698,

Village:Laagnaj, Ta.Mehsana,

Di.Mehsana,

Gujarat.

Crop Area in Sq. Meters

GERBERA 4000

Sr.No. Particulars Project Cost

(Amt. in Lacs)

1 Total Cost 5800000

2 Own Contribution 25% 1450000

3 Term Loan 75% 4350000

Total 5800000

*The Subsidy under National Horticulture Mission is available for Protected Cultivation under Green House Structure with @

65% of Structure Cost, 50% of Planting Material Cost and @50% of Pack House Cost.

2. Highlights of the Project

1. The green house project is for GERBERA FLOWERS.

Demand for Gerbera Flowers are increasing in India and having good market for export abroad with a good rate or return.

2. Low Risk as proven crop selected i.e., GERBERA.

3. Selection of Crop is based on suitability of soil PH, EC, Rainfall and climate AND Soil and Water Test Report is

also obtained.

4. No intensive management pressure, as farm produce will be sold in local markets,

Shopping Malls, Mega Cities and other places all over India. And tie-up agreements are also to be done with customers.

5. There is a huge demand for Gerbera all over the nation and the future market of Gerbera flowers at International

Market is also expected to be very high as it is consumed with high preference.

6. Financial Ratio :

a) Internal Rate of Return above 15

b) Benefit Cost Ratio above 1.50

c) D.S.C.R. max. 6.09

min. 0.72

ave. 2.91

6. Repayment Period year 7

3. Project at a Glance

Area in Sq. Metrs 4000

Sr.No. Particulars Amount (in Rs.)

1 Land Development 348500.00

2 Bed Preparation 132000.00

3 Poly House and Automization (Controlled Atmosphere) 2800000.00

4 Labour Charges 45600.00

5 Irrigation Systems 774500.00

6 Menures & Fertilizers 127000.00

7 Planting Material Cost 1017280.00

8 Infrastructure Facilities & Support Systems 555120.00

Capital Cost of Project 5800000.00

4.1 Land :

Land of4000 Sq.Mtrs.has already been possessed at S.No.1698,

Village : Lagnaj, Ta.Mehsana, Di.Mehsana, State:Gujarat.

4.2 Soil Type :

Soil is medium type having well drainage. It has been analyzed and found suitable for

Gerbera crop. Water and Soil Testing Reports have been submitted alongwith DPR.

4.3 Land Levelling & Fencing:

Land is undulating and requires leveling. Land Levelling & Fencing will incur following

costs for Gerbera on 4000 Sq.Metrs.

Details of Land Levelling & Fencing

Particulars Total Area

4000

Land Levelling with Bulldozer for 50 Hrs. At Rs.725/Hr 36250.00

Fencing work 350 rmtrs @ Ra.100 prm 350 rmtrs At Rs.100/rm 35000.00

Bed/Red Soil (180 brass @ Rs.1000 per brass) with maram filling 180000.00

Sand (20 brass @Rs.2500 per brass) 50000.00

Rice Husk (@10500 kgs. @Rs.4.50 per kg.) 47250.00

348500.00

4.4 Bed Preparation :

Details of bed Preparation


4000

Basal Dose for 4000 Sq.Mtrs LS 72000.00

Bed Making Charges (4000 Sq.Mtrs @Rs.15.00) 60000.00

132000.00

4.5. Creation of controlled atmosphere

a) Poly House

The open vent type green house will be erected on 4000 Sq. Meters.It's cost as per present trend

is Rs.700.00 per sq.meter.

Therefore cost of poly house = Rs.28,00,000.00

It Includes

1 G.I. Tabular pipes of 76, 60, 48 & 42.

2 Poly film 200 micron, low density polythilene film, local make or

imported make for covering the structure.

3 Aluminium gripper for fixing the poly film.

The total cost of controlled atmosphere will be Rs.28,00,000.00

4.6 Labour Charges :

Details of Labour Charges :


4000

Labour Charges (Estimated for 4000 Sq. Mtrs) 45600.00

45600.00

4.7 Irrigation Systems :

Total Area

4000

a) Drip Irrigation System including Foggers (As per quotation) 480000

b) Pipe Lines (Approximately 100 rmtrs distance between borewell & water tank 10000

at Rs.100 prm)

c) WaterTank(s) LS 260000

d) Other Irrigation instruments including, 24500

HTP Pesticides spraying bed, Service Water System bed,

Generator Sets

The total cost of irrigation system will be Rs.7,74,500.00

4.8 Manures & Fertilizers :

Details of Manures & Fertilizers :


4000

Farm Yard Manures (FYM) (50 brass @ Rs.1500 as per estimates) 75000.00

Fertilizers and Insecticides (As per estimates) 52000.00

127000.00

4.9 Cost of Planting Materials

1 Cost of Planting Material

a) GERBERA

Imported varieties of Gerbera supplied by Indian companies will be used for planting.

Gerbera on an area of 4000 sq,mtrs. @ 27200 plants per acre are required.

At the rate of Rs.34 per No. the planting material cost will be Rs.9,24,800.00

Mortality of plants @2720 per 4000 Sq.Mtrs Rs.92,480.00

Therefore the planting material cost will be Rs.10,17,280.00

4.10 Infrastructure facilities

1 Grading/Packaging Room

The packaging hall size of 500 sq.ft. is proposed to be built up for packing

packing fruits @Rs.300/Sq.Ft. The Cost will be 150000.00

2 Store Room/Labour Quarters

Labour Quarters size of 500 sq.ft. is proposed to Living for

labours @Rs.300/Sq,Ft. The Cost will be 150000.00

3 Farm Equipments

Farm Equipments & Misce.

& Misce. Items/Equipments 17500.00

4 Packaging Arrangement

following packaging arrangement is proposed

1.Plastic Buckets Rs. 10000.00

2.Weighing balance and miscellaneous Rs. 8200.00

5 Support Systems

including electrifcation exps. & others

Rs. 19420.00

6 R O Plant Rs. 200000.00

The cost of Infrastructure will be 555120.00

5 Financial Analysis of the Project

SR. PARTICULARS Total Rs.

NO.

1 Land Development 348500.00

2 Bed Preparation 132000.00

3 Poly House 2800000.00

(Controlled Atmosphere)

4 Labour Charges 45600.00

5 Irrigation Systems 774500.00

6 Manures & Fertilizers 127000.00

7 Planting Material Cost 1017280.00

8 Infrastructure Facilities & Support System 555120.00

TOTAL PROJECT COST 5800000.00

ANNEXURE-I

ESTIMATED PROJECT COST

Total

Sr.No. Particulars Scale Unit Cost Qty Cost

1 Land Development

Land Development 348500

Sub Total 348500

2 Bed Preparation

Bed Preparation 132000

Sub Total 132000

3 Poly House & Automization

(Controlled Atmosphere) 2800000

Sub Total 2800000

4 Labour Charges

Labour Charges 45600

Sub Total 45600

5 Irrigation Systems

Irrigation Systems 774500

Sub Total 774500

6 Menures & Fertilizers

Menures & Fertilizers 127000

Sub Total 127000

7 Planting Material Cost

Planting Material Cost 1017280

Sub Total 1017280

8 Infrastructure Facilities & Su.Sys.

Infrastructure facilities & Su.Sys. 555120

Sub Total 555120

CAPITAL COST OF THE PROJECT TOTAL 5800000

PROPOSED MEANS OF FINANCE

1 PROMOTER'S SHARE 25% 1450000

2 BANK/FI TERM LOAN 75% 4350000

TOTAL : 5800000

1 NHM Subsidy 2900000

Total 2900000

Yield Calculation - Production Details of GERBRA

Year Area in Sq.Mtr. Plant Production Production Selling Rate/ Total

Plants/Acre Population of Gerbera of Gerbera Flower Reveunve

(4000 Sq.Mtr.) (Nos.) (inStems/Plant)in Nos. in Rs. (In Rs.)

1 4000 27200 34 924800 2.95 2728160

2 4000 27200 35 952000 2.95 2808400

3 4000 27200 35 952000 2.95 2808400

4 4000 27200 34 924800 2.95 2728160

5 4000 27200 35 952000 2.95 2808400

6 4000 27200 35 952000 2.95 2808400

7 4000 27200 34 924800 2.95 2728160

8 4000 27200 35 952000 2.95 2808400

9 4000 27200 35 952000 2.95 2808400

CAPACITY UTILIZATION OF GERBERA FLOWERS :

For first year the actual sale will commence after eight months from the date of release of loan.

This will continue for 3 years. Subsequenly a gap of 4 months will be required for re-plantation for

continuation of activity.

Accordingly after every three years of production, four months is required for re-plantation.

Income Calculation of Total Product

YEAR GERBERA TOTAL

1 2728160 2728160

2 2808400 2808400

3 2808400 2808400

4 2728160 2728160

5 2808400 2808400

6 2808400 2808400

7 2728160 2728160

8 2808400 2808400

9 2808400 2808400

Note :

No Production/Yield is available during the period of Cultivation,

All output is available from Financial year 2012-13 and in the attached Projections

Year 1 is taken as first financial year from 2012-13.

ANNEXURE-II

COST OF PRODUCTION & PROFITABILITY

(Rs. In Lacs)

Particulars Year-I Year-II Year-III Year-IV Year-V Year-VI Year-VII

Income 27.2816 28.084 28.084 27.2816 28.084 28.084 27.2816

Sales of Gerbera (Rs.) 2728160 2808400 2808400 2728160 2808400 2808400 2728160

Total Recurring Cost(1 to 8) 8.40 9.86 9.83 22.85 9.77 9.75 22.79

1.Agri. Inputs 3.50 4.93 4.93 4.85 4.93 4.93 4.85

2.Other Expenses 0.98 0.98 0.98 0.98 0.98 0.98 0.98

3.Salary & Wages 2.40 2.40 2.40 2.40 2.40 2.40 2.40

4.Transportation Cost 0.92 0.95 0.95 0.92 0.95 0.95 0.92

5.Insurance @5% of Gree.Ho 0.35 0.32 0.28 0.26 0.23 0.21 0.19

6.Contingencies @3% 0.23 0.28 0.28 0.27 0.28 0.28 0.27

7.Cost of Planting Material 0 0 0 10.17 0 0 10.17

8.Poly film replacement 0 0 0 3 0 0 3

Gross Profit Before I & D 18.88 18.23 18.26 4.43 18.31 18.34 4.50

Lease Rental 0 0 0 0 0 0 0

Depreciation 2.80 2.52 2.27 2.04 1.84 1.65 1.49

Gross Profit Before Interest 16.08 15.71 15.99 2.39 16.48 16.68 3.01

Interest-Term Loan @11% 5.45 4.65 3.84 3.03 2.22 1.41 0.61

Profit Before Tax 10.63 11.06 12.15 -0.64 14.25 15.27 2.40

Taxes 0 0 0 0 0 0 0

Profit After Taxes 10.63 11.06 12.15 -0.64 14.25 15.27 2.40

Retained Profit/Loss 10.63 11.06 12.15 -0.64 14.25 15.27 2.40

Net Cash Accruals 13.43 13.58 14.42 1.40 16.09 16.92 3.89

Notes :

1. Life of Gerbera is 36 months.

2. Cost of Planting Materila of Gerbera for every 3 years is Rs. 10.17 lacs

3. Cost of Green House for Insurance is Rs.2800000.

ANNEXURE-III

PROJECTED BALANCE SHEET

(Rs. In Lacs)


LIABILITIES

Farmer's Share 14.50 14.50 14.50 14.50 14.50 14.50 14.50

Capital Subsidy 0.00 29.00 29.00 29.00 29.00 29.00 29.00

Reserves & Surpluses 10.63 21.69 33.85 33.20 47.46 62.73 65.13

Term Loan 43.50 37.29 31.07 24.86 18.64 12.43 6.21

Total 68.63 102.48 108.42 101.56 109.60 118.65 114.84

ASSETS

Fixed Assets 58.00 55.20 52.68 50.41 48.37 46.53 44.88

Less : Depreciation 2.80 2.52 2.27 2.04 1.84 1.65 1.49

Net Assets 55.20 52.68 50.41 48.37 46.53 44.88 43.39

Other Misce Assets, Cash 13.43 49.80 58.01 53.19 63.07 73.77 71.45

and Bank Balances

Total 68.63 102.48 108.42 101.56 109.60 118.65 114.84

ANNEXURE-IV

DEPRECIATION

(Rs. in lacs)


1 2 3 4 5 6 7

Land Deveopment

Rate of Depreciation N.A. N.A. N.A. N.A. N.A. N.A. N.A.

OP.BALANCE 348500 348500 348500 348500 348500 348500 348500

DEPRECIATION 0 0 0 0 0 0 0

NET BLOCK 348500 348500 348500 348500 348500 348500 348500

Cultivation Capital Exps.

& Infrastructure Facilities

Rate of Depreciation N.A. N.A. N.A. N.A. N.A. N.A. N.A.

OP.BALANCE 2651500 26,51,500 26,51,500 26,51,500 26,51,500 26,51,500 26,51,500

DEPRECIATION 0 0 0 0 0 0 0

NET BLOCK 2651500 2651500 2651500 2651500 2651500 2651500 2651500

Cost of Ploy House

Rate of Depreciation 10% 10% 10% 10% 10% 10% 10%

OP.BALANCE 2800000 2520000 2268000 2041200 1837080 1653372 1488034.8

DEPRECIATION 280000 252000 226800 204120 183708 165337.2 148803.48

NET BLOCK 2520000 2268000 2041200 1837080 1653372 1488034.8 1339231.3

TOTAL DEPRECIATION 280000 252000 226800 204120 183708 165337.2 148803.48

Note:

Cost of Plant includes Green House Controlled Atmosphere Plant.

ANNEXURE-V

CASH FLOW STATEMENT

(Rs. In Lacs)


SOURCES OF FUNDS

Increase in Farmer's Share 14.50 0.00 0.00 0.00 0.00 0.00 0.00

Net Profit 10.63 11.06 12.15 -0.64 14.25 15.27 2.40

Increase in Subsidy 0.00 29.00 0.00 0.00 0.00 0.00 0.00

`

Depreciation 2.80 2.52 2.27 2.04 1.84 1.65 1.49

Increase in Term Loan 43.50 0.00 0.00 0.00 0.00 0.00 0.00

Total 71.43 42.58 14.42 1.40 16.09 16.92 3.89

DEPLOYMENT OF FUNDS

Increase in Fixed Assets 58.00 0.00 0.00 0.00 0.00 0.00 0.00

Decrease in Term Loan 3.11 3.11 3.11 3.11 3.11 3.11 3.11

Interest on Term Loan 5.45 4.65 3.84 3.03 2.22 1.41 0.61

Total 66.56 7.75 6.94 6.14 5.33 4.52 3.71

Opening Balance 0.00 4.87 39.70 47.18 42.44 53.20 65.60

Surplus/Deficit 4.87 34.83 7.48 -4.74 10.76 12.40 0.18

Closing Balance 4.87 39.70 47.18 42.44 53.20 65.60 65.78

ANNEXURE-VI

DEBT SERVICE COVERAGE RATIO

(Rs. In Lacs)


Net Profit after Tax 10.63 11.06 12.15 -0.64 14.25 15.27 2.40

Depreciation 2.80 2.52 2.27 2.04 1.84 1.65 1.49

Other Claim Received 0.00 29.00 0.00 0.00 0.00 0.00 0.00

Interest 5.45 4.65 3.84 3.03 2.22 1.41 0.61

Total 18.88 47.23 18.26 4.43 18.31 18.34 4.50

Term Loan Principal Repay. 3.11 3.11 3.11 3.11 3.11 3.11 3.11

Interest Repayment 5.45 4.65 3.84 3.03 2.22 1.41 0.61

Total 8.56 7.75 6.94 6.14 5.33 4.52 3.71

DSCR 2.21 6.09 2.63 0.72 3.44 4.06 1.21

AVERAGE DSCR 2.91

ANNEXURE-VII

PAY BACK PERIOD

(Rs. In Lacs)


Capital Investment 58.00 0.00 0.00 0.00 0.00 0.00 0.00

Net Cash Accruals 13.43 13.58 14.42 1.40 16.09 16.92 3.89

Cumulative Income 13.43 27.01 41.43 42.83 58.92 75.85 79.74

Payback Period 5.05 Years

ANNEXURE-IX

BREAK EVEN ANALYSIS

Particulars Year-IV

(At Optimum Level)

Gross Sales 2728160

Fixed Cost(Includi.Depre. & Interest) 2792526.07

Variable Cost 0

Contribution -64366.07

Break Even Sales (Nos.) 79786.45914

Break Even Sales (Rs.) 2792526.07

ANNEXURE-VIII

AGRI INPUTS

(Manures, Fertilizers & Chemicals)

Particulars Rate Unit Qty./Sq.Meter Amount

Rs. In lac 4000 Rs. In lacs

Farm Yard Manure@ 0.025 per truck 10 Trucks 0.25

8 kg/sq.mtr.

Chemicals Fertilizer, Water 0.13 per tonne 7.2 Ton p.a. 0.94

Soluble @ 20 kg/day for

12 months per 4000 sq.mtr

Micro Nutrient 0.5 Kg. per 0.0075 per kg. 30 Kgs 0.23

Spray @15 days interval,

2.5 sprays

Preventive sprays for control 0.0045 per ltr. 104 Ltrs 0.468

of pests and dieseases @

2 sprays per week @ 1.0

lit/spray for 4000 sq.mtrs

Drenching 12 times per year 0.0017 per kg. 78 Kgs. 0.1326

at the rate 6.5 kg per drenching

lit/spray per 4000 sq.mtrs

Total Cost for 4000 Sq.Mtr 2.01

a) Manures, Fertilizers & Chemicals


Expenses 0.67 2.01 2.01 2.01 2.01 2.01 2.01

b) Packaging Material Expenses


GERBERA

1.No.of Plants (in Nos.) 27200.00 27200.00 27200.00 27200.00 27200.00 27200.00 27200.00

2.Production in Seams (Nos.) 924800.00 952000.00 952000.00 924800.00 952000.00 952000.00 924800.00

3.No.of Cartons required 1849.60 1904.00 1904.00 1849.60 1904.00 1904.00 1849.60

4.Cost of Cartons Rs. 277440.00 285600.00 285600.00 277440.00 285600.00 285600.00 277440.00

5.Cots of other materials 6000.00 6000.00 6000.00 6000.00 6000.00 6000.00 6000.00

Total Cost of Packaging 2.83 2.92 2.92 2.83 2.92 2.92 2.83


TOTAL AGRI.INPUT COSTS 3.50 4.93 4.93 4.85 4.93 4.93 4.85

(a+b)

ANNEXURE-IX

OTHER EXPENSES

Particulars Rate Unit Qty./Sq.Metr. Amount

Rs. 4000 Rs. In lacs

Electricity and maintenance 4000 Charges 12 months 0.48

chartges fro Drip & Spraying

motors @ Rs.100000/HP/Yr.

for 8 HP

For Sq.Mtrs. 4000

Miscellaneous Expenses @ 2700 Charges 12 months 0.324

Rs.2700/month

(Includes stationery, printing,

testing of soil, water and

plants, medical, travelling,

postal, staff weldare, etc.)

For Sq.Mtrs. 4000

Communication, FAX ISD, 1500 Charges 12 months 0.18

Telephone Charges, @

Rs.1500/month

For Sq.Mtrs. 4000

Others Misce.


OTHER EXPENSES


Expenses 0.98 0.98 0.98 0.98 0.98 0.98 0.98

ANNEXURE-X

SALARY & WAGES

Particulars Rate Unit Nos. Amount

Rs. Rs. In lacs

Agriculture Supervisor 4500 Emplyees 1 0.54

Skilled & Permanent Labor 1800 Employees 5 1.08

Unskilled Labour for 1300 Employees 5 0.78

Grading & Packing


SALARY & WAGES


Expenses 2.40 2.40 2.40 2.40 2.40 2.40 2.40

ANNEXURE-XI

TRANSPORTATION EXPENSES

Particulars Rate Product Cartons Amount

Rs./truck Per Truck Rs. In lacs

Transportation Costs 5000 Gerbera 18.50 0.9248

Transportation Costs 5000 Gerbera 19.04 0.952


TRANSPORTATION EXPENSES


Expenses 0.92 0.95 0.95 0.92 0.95 0.95 0.92

ANNEXURE-VI

REPAYMENT OF TERM LOAN

Term Loan 4350000 Rs.

Moratorium 9 Months

Repayment 7 Years

Princi.Installment Amount HYearly 310714 Rs.

Installment Nos. 14

Interest Rate 13

YEAR Principal Principal Principal Interest

Amount (Op.Ba.) Repayment Outstanding YEALRY Yearly

Year 1 545303.6

1 4350000 310714 4039286 282750

2 4039286 310714 3728572 262553.59

Year 2 464518

1 3728572 310714 3417858 242357.18

2 3417858 310714 3107144 222160.77

Year 3 383732.3

1 3107144 310714 2796430 201964.36

2 2796430 310714 2485716 181767.95

Year 4 302946.7

1 2485716 310714 2175002 161571.54

2 2175002 310714 1864288 141375.13

Year 5 222161

1 1864288 310714 1553574 121178.72

2 1553574 310714 1242860 100982.31

Year 6 141375.4

1 1242860 310714 932146 80785.9

2 932146 310714 621432 60589.49

Year 7 60589.75

1 621432 310714 310718 40393.08

2 310718 310714 0 20196.67

3107140 2120624

Notes: 1. Bank Term Loan proposed is Rs.4350000.

2. Subsidy fron NHM is projected to be receiving at the end of year 1, hence

repayment of the remaining amount from year 1 is considered for Interest

calculation and principal repayment.

3. It is projected that sufficient funds will be availble with the promoter for

making expenditures on cultivations expenditures every year and

for making expenditures on plant and poly film for every three years.

Documents

Jagdish.Kantibhai.Patel