Friday, 22 May 2015


Agricity Agrifarm India Pvt Ltd

 

 

 

 

PROJECT REPORT












Prepared By:
INDUSTRIAL CONSULTANCY & MARKETTING SERVICES REGISTERED
 (Accredited Member : Consultancy Development Centre,Department of Scientific and Industrial Research, Govt. of India, New Delhi No.1512)
OPP KSRTC, Kannamthanathu Bldg. M C Road, Chengannur - 689 121.
Tel. 0479-2457860 (O), 0468-2317022 (R),9947172490(M) e-mail: incomsr@yahoo.com 


 


Agricity Agrifarm India Pvt Ltd



INDEX-CONTENTS

SLNO
PARTICULARS





PAGE NO
I.
INTRODUCTION






II.
MARKETTING & SELLING ARRANGEMENTS



III.
PROJECT DETAILS






IV.
COST OF PROJECT & MEANS OF FINANCE



V.
FINANCIAL VIABILITY





VI.
CONCLUSION & RECOMMENDATIONS




VII.
ANNEXURES







ANNEXURE I
BIODATA OF THE PROMOTERS



ANNEXURE II
LOCATIONAL DETAILS




ANNEXURE III
COST OF LAND AND BUILDING



ANNEXURE IV
PLAN OF THE BUILDING




ANNEXURE V
ESTIMATE OF THE BUILDING




ANNEXURE VI
FLOW CHART





ANNEXURE VII
MACHINERY AND EQUIPMENTS



ANNEXURE VIII
MISC.FIXED ASSETS




ANNEXURE IX
SUPPLIERS OF MACHINERY AND EQUIPMENTS


ANNEXURE X
REQUIREMENT OF RAW MATERIALS



ANNEXURE XI
REQUIREMENT OF UTILITIES




ANNEXURE XII
REQUIREMENT OF MANPOWER



ANNEXURE XIII
ORGANISATION SET UP




ANNEXURE XIV
ASSESSMENT OF WORKING CAPITAL



ANNEXURE XV
PRODUCT MIX AND SALES REALIUZATIO0N


ANNEXURE XVI
REPAYMENT SCHEDULE




ANNEXURE  XVII
CALCULATION OF DEPRECIATION



ANNEXURE XVIII
CALCULATION OF INCOME TAX



ANNEXURE XIX
PROJECTED PROFITABILITY STATEMENT


ANNEXURE XX
PROJECTED CASHFLOW STATEMENT



ANNEXURE XXI
PROJECTED BALANCE SHEET



ANNEXURE XXII
BREAK EVEN ANALYSIS




ANNEXURE XXIII
LIQUIDITY RATIOS






Agricity Agrifarm India Pvt Ltd


PROJECT REPORT

                                                                                                                                                                                                                                                                                                                                                                                                             
I. INTRODUCTION:

I.1. General………………..

I.2. The Promoter

The project is promoted by M//s Agricity Agrifarm India Private Limited having their Registere Office at Room No.CF7, Revenure Tower, Thiruvalla – 689 101, Pathanamthitta, Kerala managed by Professor James(Retd) as the Chairman and Managing Director assisted by Director Facil James and Mrs. Leelamma. The company is functioning since 2009  and in vibrant activities. This is an agricultural company incorporated with lofty ideas of developing agri based industries, live stock, cattle farms, tourism projects etc. The promoters are in sound position and are having long business experience.
1.      Prof James: He is the Chairman and Managing Director of the firm. He has been in service for long periods. After retirement he has been attracted by business concepts. He selected agri-based industries  as his field and now engaged in setting up an organic farm coupled with farm tourism and dairy firm.
2.      Facil James: Facil James is the Managing Director of the firm. He is a Post Graduate. He is a highly talented youth with deep business aptituteds.
3.      Leela James: Leela James is also a Director of the company. She has been is teaching profession for  longer period and is going to retire very soon and after that she will concentrate in business to help Prof. James and Facil James.

I.3. The Project

The project may be termed as a multi faceted proposal combining a Resort Project, Dairy Project and Farm Tourism Project which are  quietly interlinked each other. The project is coming up in an area of 1200 Acres in a highly beautiful area in Munnar, the paradise of world tourists.
1.      Organic Farm: In the total area of 1200 Acres, the Organic Farm will comprise an area of 750 Acres with an investment of USD.
2.      Dairy Farm:Dairy firm is proposed to be set up in area of 100 Acre with investment range of USD….
3.      Tourism Project: A Farm tourism project too is proposed to be conducted hand in hand with the other proposals of Dairy farm and Organic farm. The investment for this section is envisaged to be USD….
The total investment of the project is estimated to 50 Million USD. The amount is proposed to raised as loan from a financier at an interest of 4% per annum.
II. MARKET & SELLING ARRANGEMENTS:
Kerala is known as the God’s Own Country in the Global Tourist circle. The
a state situated on the tropical Malabar Coast of southwestern India, is one of the most popular tourist destinations in the country. Named as one of the ten paradises of the world by National Geographic Traveler, Kerala is famous especially for its ecotourism initiatives and beautiful backwaters. Its unique culture and traditions, coupled with its varied demography, have made Kerala one of the most popular tourist destinations in the world. Growing at a rate of 13.31%, the tourism industry is a major contributor to the state's economy.
Until the early 1980s, Kerala was a relatively unknown destination, with most tourism circuits concentrated around the north of the country. Aggressive marketing campaigns launched by the Kerala Tourism Development Corporation—the government agency that oversees tourism prospects of the state—laid the foundation for the growth of the tourism industry. In the decades that followed, Kerala Tourism was able to transform itself into one of the niche holiday destinations in India. The tag line Kerala – God's Own Country was adopted in its tourism promotions and became a global super-brand. Kerala is regarded as one of the destinations with the highest brand recall. In 2010, Kerala attracted 660,000 foreign tourist arrivals.
Kerala is an established destination for both domestic as well as foreign tourists. Kerala is well known for its beaches, backwaters in Alappuzha andKollam, mountain ranges and wildlife sanctuaries. Other popular attractions in the state include the beaches at KovalamKappadCherai and Varkala; backwater tourism and lake resorts around Ashtamudi LakeKollam; hill stations and resorts at MunnarWayanadNelliampathi,
Vagamon andPonmudi; and national parks and wildlife sanctuaries at Periyar and Eravikulam National Park. The "backwaters" region—an extensive network of interlocking rivers, lakes, and canals that centre on Ashtamudi LakeKollam, also see heavy tourist traffic. Heritage sites, such as the Padmanabhapuram PalaceHill Palace, and Mattancherry Palace, are also visited. The city of Trivandrum ranks first in the total number of international and domestic tourists in Kerala. To further promote tourism in Kerala, the Grand Kerala Shopping Festival was started by the Government of Kerala in 2007. Since then it has been held every year during the December–January period.
The state's tourism agenda promotes ecologically sustained tourism, which focuses on the local culture, wilderness adventures, volunteering and personal growth of the local population. Efforts are taken to minimise the adverse effects of traditional tourism on the natural environment, and enhance the cultural integrity of local people.
Tourism in Kerala  is in the steady path of growth. The flow of trourist to kerala is continuous as far as the natural beauty of the state prolongs. So here one has to do is to provide infrastructure for the tourists to enjoy the blessing of the nature. Here the Promoter is just providing the infrastructure in a grand way so that any tourist can come and enjoy it.
The Promoters proposes to arrange elaborate program for the propaganda to spread about the facilities provided in the firm for enjoyment of the tourist. The project is coming up in an area of 1200 Acres of splendorous natural beauty. It has several novelty to announce for the enjoyment of the tourists. Three numbers of Check Dams proposed in the project area  provide very rare tourist experience in the mind of any world tourist. There will be swimming , boating, site seeing, fishing and all such other means for enjoyment. Farm Tourism is yet another  matter of attraction. It is a beautifully arranged Cardamom Plantation in a area of 750 Acres where tourist can walk leisurely among the cardamom plants which will give a very grand experience to the tourist. The experience of a tourist he revives while he see the grazing of 1000 cows with bulls in a wide area of 900 acres of grass land will be remarkably memorable through out his life.
Accordingly, the project will be one of the grand episodes in the history of Tourism of Kerala. AS such the flow of tourists to this project area will be automatic once it is launched. So much is the matters of attraction provided. However, the promoters will make provisions for advertisement in global and domestic media, efficient sales team etc for the promotion of Sales.
Apart from the Tourism, the promoter have to sell various products manufactured from milk like packed milk, medical products like medicated ghee, Curd etc. From this also the promoters expects a sizable income. As the product products are of super quality and organic in nature, the products can also move in the market without any problem.
Thus there will be no problem for Sales and marketing.
III. PROJECT PARTICULARS:

1. Location, Land & Building

a) Location:

The Project is located in Munnar, one of the most important tourist centers in India. Moonnar is a hilly area with grand natural beauty.  It is famous


                       

For its tea plantations, cardamom plantations, etc. There are several important places to be visited at Munnar. The tourist who comes to visit Munnar will be give a grand experience at this resort of the promoters and will end in an ultimate destination of the tourists. It is in Idukky District in Kerala. It not far awsay from Kottayam. Sufficient transportation facilities are available to Munnar. As such all infrastructural facilities are available at the proposed location. As such the location is very good and sufficient for the development of the project.



b) Land:


The project is coming up in an area of 1200 Acres of land proposed to be purchased by the promoter. The cost of land is ….USD. The promoter and the land owner have entered into an understanding and land owner is willing to sell the land to the proposer,

                       
The land is sufficient to accommodate all the divisions proposed by the promoter.The project has been subdivided into three parts. But it will work in union and mingled way. For example, the Cardamom farm will be used by the tourists to site seeing, walking, and leisurely stay  etc where as dairy farm will form a part of the project where the tourist can see various activities related to dairy operations.

c) Building:

The Promoter will construct 150 eco friendly torust huts in the project area with a plinth area of 300 sq ft area. This is sufficient to accommodate a tourist family of two or three persons. Further they will construct building needed for Diary activities like milk parlour, chilling and packing plant, labour quarters, tourist bungalows, managers bungalow, Guest house, cardamom processing plant etc. All constructions will in line with eco friendly provisions. The total cost of the construction is estimated to …..USD.















2. Plant, Machinery & Equipments

The project needs a lot of machinery for smooth functioning of the unit. They are summed up in the following table.

 

3. Desirability of Machinery

Desirability of the machinery and equipments are evident from the name of the items. So no explanation is needed. All the machineries are available indigenously.



4. Product Mix & Sales Realization

The promoters expects following income from the project. The projects are given for 10 years and 65% capacity utilization is expectedduring the initial year. The also expect 10% increase every year.
1. Basis : 1.  900 cows will give 9000 Ltrs & 65% will e sold as milk.@ 1.56 $ per litr
2. 35% of milk will be converted to Ghee which will be converted to Medicated ghee and will be sold at 15.56$ per kg
3. There are 150 huts which will be rented at 233.46 $ per day and it is expected that the occupation will be available for 365 days and the income expected is 12.78 Million
4. The promoters expect other miscellaneous income from other tourism activities which come to 2Min USD.

5. Mode of  Operation

The modus operandi is just as happening in a conventional tourist organizations.

6. Technical Know how

The promoters are well versed in proposed activities.

7. Raw Materials

The promoters will manage to arrange grass in the land owned by promoters and the grass cultivation will be done using organic manure like cow dung etc produced in the unit. So a handling charge will be the expenses. However, for calculation purpose a nominal amount is considered which comes to 0.50 Mln USD.

8. Utilities

1. Electricity:

Electricity is highly necessary for the operation of the unit. The entire farm roads, processing units, Chilling plant, packing plants etc and office complex, labours quarters, swimming areas, Gym and Yoga centre etc are to be electrified.. For all the purpose the unit will need a minimu of 100 HP for this the promoters have already electricity authorities for a power allocation and further necessary actions.

                                                   

2. Fuel:

Fuel is needed for restaurant and it will be available from the surrounding areas and in the most cases electricity will be used as fuel. The cost of this is included in the above calculations.

3. Water:

Water is available free of cost at the site. However, a handling charge 16$ has been provided in the calculations.

9. Effluent Disposal

No effluent is generated in the unit. However, the kitchen waste etc will be managed scientifically and eco friendly at the stie for which suitable provision has been made in the project.

 



10. Organization & Manpower Requirements

The project proposes to use the following manpower for better management of the firm.

Salary for Farm sector:                    0.38 Miln USD Per annum

            Salary Administrative Section            0.08  Miln  USD  per annum  

 

 

 

 

 

 



11. Schedule of Implementation

The project is proposed to be set in to stream during the month July 2015 or as soon as the finance is availed.
















         V. VIABILITY AND OTHER ASPECTS:
1. Security for Term Loan:
The Term Loan will be secured by collateral security as per the following schedule
3. Schedule of Drawal & Repayment:
The Loan is proposed to be drawn in lump-sum as it requires to purchase machinery and equipments. The repayment schedule is given in Annexure IX. The interest is required to be paid in quarterly instalment as calculated by the bank at Percentage%. Installment of principal works out to be Rs. Amount per month. This amount will be paid on monthly basis. The term loan is to be repaid in ten years after starting the repayment after six months of starting commercial production.
4. Financial Viability:
A detailed projected profitability statement is annexed as Annexure X. It is for 10 years of operation starting from the 1st year of operation. The statement has been based on the following assumptions.
a)     The details of the revenue has been worked out on the basis of the details given in Annexure III. Possible fluctuation in the charges are ignored.
b)     It is expected that the unit will work for 300 days per annum in single shift basis.
c)     It is expected that the unit will affect in case of increase in the cost of raw materials, consumables etc. proportionately. However, the cost of inputs are taken at prevailing rates.
d)     The unit is expected to achieve Percentage% of the installed capacity during the first year, Percentage% in the second year and Percentage% in and onwards 3rd year of operation.
e)     Details of the requirement of the raw materials etc. are taken as it is taken in such type of industries.
f)   Repair, Maintenance & Insurance are taken at Percentage% of the fixed assets.  
g)     Contingency provision has been taken at Percentage% of direct expenses other than raw materials.
h)     Depreciation is charged at Percentage% of the fixed assets. But for the purpose of income tax, depreciation is charged as rules allow.
i)   Administrative overheads and sales overheads have taken as per the normal practice in such units.
j)   Interest on term loan has been calculated @ Percentage 
k)     Possible fluctuation in the context of inflation has been ignored.
l) On the basis of above, the unit is expected to generate retained of Rs. Amount in the first year, Rs. Amount in the second year and Rs. Amount in the third year.
5. Break Even Analysis:
A detailed Break Even Analysis is given as Annexure XIII. The unit is expected to break even at Percentage%.
6. Cash Flow Statements:
A detailed Cash Flow statement is given as Annexure XI. The cash is sufficient even after meeting the repayment obligations and interest. It ensures considerable amount for growth of the unit.
7. Projected Balance sheet:
A projected Balance sheet for a period of initial 10 years of operation is attached as Annexure XII.
VII. CONCLUSION & RECOMMENDATIONS
Sri. Name residing at House name and place proposes to start a Project's name at Place for which he has taken several steps. He has obtained Provisional Registration vide No. Reg. No dated Date. The unit requires a term loan of Rs. Amount. The contribution of the promoter stands at Amount. Apart from it he offers a collateral security worth Rs. Amount in addition to the assets purchased using the loan amount. The financial indicators are satisfactory. The promoter is well experienced in the proposed activity. He is eduated and unemployed also. The project is technically viable and economically feasible. Hence, the proposal deserves encouragement.

Place: Chengannur,
Date: Amount                                               INDUSTRIAL CONSULTANCY &
                                                                        MARKETTING SERVEICES REGD.