Press Release Summary = THIS IS A BUSINESS PLAN PREPARED BY MR.ROHAN DESHMUKH TO STARTUP A NEW BIOFERTILIZER FIRM IN INDIA AND I WOULD BE VERY GLAD IF ANY VC WOULD LIKE TO INVEST IN MY FIRM.
Press Release Body =
Executive summary:
Chemical fertilizers have played a significant role in Indian agriculture facilitating green revolution and making the country self reliant in food production. However, continuous, concentrated and indiscriminate use of chemical fertilizers affects the soil health, leading to acidification, micro nutrient depletion, soil degradation, reduction in the activity of micro flora and micro fauna, poor crop health and lower crop yield and quality, it may also contribute to environmental risks like increase in global warming, ground and surface water pollution etc. Hence to overcome all these problems organic fertilizer is the best solution which do not have any disadvantages. So looking at this opportunity R&D Organic Fertilizer Company will be constructed near Kondi which is 25km far from Solapur in Maharashtra province, India. The management team involved in this would be Mr. Rohan Deshmukh, owner and chairman, completed his bachelors in biotechnology and also has a minor in entrepreneurship, Mr. Ganesh Dendukuri, Lab technician, have 5yrs experience as biologists, Mr. Vivek Patil, Marketing officer, have 7yrs experience in a chemical fertilizer industry as a Marketing Officer. The initial funds required to startup will be Rs1440000. About Rs576000 will be invested by Mr.Deshmukh and a loan of Rs864000 will be taken from the bank. This amount will be be used in purchasing of the land, for purchasing the required equipments to develop the Laboratory, advertising etc. The company assumes that the loan will be paid back within 12yrs. The estimated Net profit for the first year will be approximately Rs407856. The sale of the product will be within Solapur district for the first year and after that the company would like to increase its sale to the all over Maharashtra State with increase in its production capacity. The company assumes that since organic fertilizers have a lot of benefits over chemical fertilizers and as most of the people are involved in agriculture so there will be a huge market for this product. The company assumes that chemical fertilizers industry and the upcoming organic fertilizers industry would be its competitors.
Company Description:
R&D Organic Fertilizer Company is a start up business in Kondi which is 25km away from Solapur, India. The company is owned by Mr.Rohan Deshmukh, who has done his bachelors in Biotechnology. The initial fund to start the business will be provided by the owner and bank loans and these funds will be invested in purchasing the land and necessary equipments to build up the laboratory etc. The company will have a well equipped laboratory with expertise for the production. The company will be interested in the production of organic fertilizer mainly Azotobacter fertilizer, Ryzobium fertilizer, Phosphate fertilizer and vermicompost manure. The company is interested in developing a good quality of product and giving an efficient service to its customers. The main customers will be farmers who are having big land as well as small land. The benefits provided by the organic fertilizers will be that when added to soil it would loosens the soils and allow air and water to enter also it would absorb the water and prevent water logging and will improve the water hold capacity of the soil. It will also neutralize the soils pH. Adding organic fertilizers to soil releases insoluble phosphorous in the soil and fixes this phosphorous in the clay minerals, which is a great significance in agriculture also fixes the atmospheric nitrogen in the soil and makes it available to the plants. It improves physical, chemical and microbial fertility of the soil which is helpful for the growth of the plant and increases the product yield.
The company will establish distributors in each taluka so that its product is available to its customers. The company will expand its sales in after the first year to overall Maharashtra State. The company assumes that it would achieve success because of its quality of product and service that it provides.
Product Description:
R&D Organic fertilizer Company will be interested in the production of four types of organic fertilizers, Azotobacter fertilizer, Ryzobium fertilizer, Phosphate fertilizer and vermi-compost manure. The application process and the benefits of the each product is as follows,
1. Azotobacter fertilizer: Atmosphere contains 78% nitrogen, which is a very important nutrient for the plant grown. Azotobacter fertilizer fixes the atmospheric nitrogen in the soil and makes it available to the plants. It also protects the roots from other pathogens present in the soil. It takes atmosphere nitrogen and converts it into organic nitrogen and ammonia in a form where the plants can use. The enzymes inside azotobactor perform nitrogen fixation. It produces B-Vitamins, Acetic acid, Gibberellins Cytokines to help in plant growth. It synthesizes antibiotic substances to control and suppress various fungal, bacterial and viral diseases of plant roots. It also increases the activity of beneficial rhizosphere bacteria. For 1 acre, mix 4 - 5kg azotobacter fertilizer in 500kg organic manure like well decomposed cattle waste/vermicompost etc. add 1-2 kg of jagarry and sufficient water to maintain 40 to 60% moisture and mix well
2. Ryzobium fertilizer: Ryzobium fertilizer bacteria play very important role in agriculture by inducing nitrogen-fixing nodules on the roots of legumes such as peas, beans, clove & alfalfa. This symbiosis can relieve the requirements for added nitrogen fertilizers during the growth of leguminous crop. It establishes symbiotic relationship between the leguminous plant and nodule bacteria. It transforms the molecular nitrogen into ammonia nitrogen which is needed by the growth & development of host plants. For 1 acre, mix 4 - 5kg ryzobium fertilizer in 500kg organic manure like well decomposed cattle waste/vermicompost etc. add 1-2 kg of jagarry and sufficient water to maintain 40 to 60% moisture and mix well
3. Phosphate fertilizer: It releases insoluble phosphorus in soil and fixes this phosphorus in the clay minerals, which is a great significance in agriculture. Farmers apply phosphate fertilizers from various sources which remains fixed in the soil over a long period of time but is not available to crop. Phosphate fertilizer which contains phosphate solubilizers will make this fixed phosphorus available to the crop. For 1 acre, mix 4 - 5kg phosphate fertilizer in 500kg organic manure like well decomposed cattle waste/vermicompost etc. add 1-2 kg of jagarry and sufficient water to maintain 40 to 60% moisture and mix well
4. Vermicompost manure: Vermicompost manure is 100% pure eco-friendly organic fertilizer. This organic fertilizer has nitrogen, phosphorus, potassium organic Carbon, Sulphur and Flormons, Vitamins, enzymes and antibiotics which helps to improve the quality and quantity of yield. It is observed that continuous and misuse of chemical fertilizers, soil looses its fertility and get salty day by day. To overcome such problems natural farming is the only remedy and vermicompost is one of the best solutions. It improves the physical, chemical & microbial status of soil. Maintain soil pH neutral. It contains Vitamins and Harmones which helps healthy growth of crops and improves color of flowers and taste of fruits. It improves the water holding capacity. It makes soil process due to which nitrogen and oxygen supplied to deep roots and available very early. It is the best organic fertilizer for garden plants.
Crops Per Acre Application Sugar Cane 1000-2000Kg 500-1000Kg before harvesting 500-1000Kg 75 days after harvesting Cotton 800-1000Kg Before or after planting Soyabeen, Groundnut, Sunflower, Other Oil Seeds 800-1000Kg Before seeding or 30 days after seeding Rice, Jawar, Bajra, Wheat, Corn 400-600Kg Before seeding Flowers 500-600Kg Use every 6 months Imp. Vegetables 600-800Kg Before or after planting Fruit 500-2000Kg Use every 6 months. Doses depends on age of the fruit plant.
Industry Analysis
Organic fertilizer industry comes under Agro-based industries and the primary market for these industries are the farmers. There are almost 43,722 numbers of villages in Maharashtra State and most of the rural population is involved in agriculture. According to the research it shows that the use of organic fertilizer is less but due to the awareness of the product there is tremendous growth in the sales of the product.
Since organic fertilizer is very new product so there are not many organic fertilizer industries in Maharashtra. According to the primary research there are approximately 15 organic fertilizers firm in Maharasthra and are insufficient since the demand for organic fertilizers is increasing day by day and there are approximately 35 chemical fertilizer industries in Maharasthra. The trend since last few years is growing for organic fertilizers and decreasing for chemical fertilizers.
The above chart shows the consumption of biofertilizers which is nothing but organic fertilizers from 1992-1999.
The above chart shows the consumption of pesticides which is nothing but chemical fertilizer from 1994-200. The chart shows that there is a decrease in the rate of consumption as time is passing.
Marketing Plan:
As per the primary research there is a good market for organic fertilizer in Maharashtra state. The main crops that are grown in Maharashtra state are sugar cane, cotton groundnut, wheat, bajara, sunflower, corn, fruits and vegetables. Organic fertilizer is very essential for the growth and to increase the product yield from these crops. Till now the farmers are been using chemical fertilizers due to which the soil has lost its fertility and have become more saline and the continuous use of chemical fertilizers have decreased the product yield. So to overcome all these factors farmers are making use of organic fertilizers and also the Indian government is helping the organic industries to promote organic fertilizers and to bring awareness among the farmers about organic fertilizers. Brochures will be distributed in all the villages informing the benefits of organic fertilizers, also adds on television and radio would be given and demonstration will be given in fields for advertising the product. There will be ads given in the weekly agriculture magazine where the benefits of organic fertilizers will be highlighted as well as the disadvantages of using chemical fertilizers will be given.
For the sales of the products, distribution channel will be setup in each taluka and the delivery to these channels would be given as per their requirement. A truck with a capacity of 4 ton will be moved to all the Talukas. The truck will be moved to each place once in a month and also as per the demand from the distributors. The order will be taken through phone and also the marketing officer will go to each and every place to take the order and as per the order the products will be delivered. The distributor rate of the products will be as follows:
The strength are, 1. The product which is eco-friendly and has various benefits. 2. There are not many organic fertilizers firms in the market yet to satisfy the needs. 3. Organic fertilizer is cheaper than chemical fertilizer and has more benefits over chemical fertilizer. 4. The packaging of the product will be made attractive. 5. There is large customer base. 6. The service provided by the company The weaknesses are: 1. The products does not have a long expiry, the expiry of the product is short that is 6 months 2. If the distributors return the expired product then it will create loss for the company. 3. Some of the companies are cheating the farmers and so farmers are puzzled to use to organic fertilizers.
Competitors: The competitors will be the chemical industries that are located all over Maharashtra state as well as the Organic fertilizer industries.
Operations:
R&D organic fertilizer company will be constructed 25km away from Solapur near Kondi. A land of one acre will be purchased. This land will be utilized to construct storage building for fertilizer, laboratory, packaging centre and restroom. Also it will be utilized to construct 6 pits for the development of vermicompost manure from earthworms. The company will also purchase two trucks one with 4 ton capacity and other with 1 ton capacity. The 4 ton capacity truck will be used to transport the fertilizer to various distributors and the 1 ton capacity truck will be used for bringing the city garbage and also in shifting the vermicompost manure from the pits to the packaging room. The 4 ton capacity truck will be moved all over the state once in a month to provide the product to the distributors. The truck with 1 ton capacity will be moved to get the city garage from Solapur city. The garbage is almost free. So this garbage will be utilized in the production of vermicompost manure. The culture of azotobacter bacteria, ryzobium bacteria and the phosphate bacteria will be produced in the laboratory itself. The production of vermicompost is bit different than above fertilizer. Vermicompost is the easy and effective way to recycle agriculture waste, city garbage etc. In this earth worms helps in transforming waste into high quality of fertilizer. Conversion of selected garbage components by earth worm is a simple process and can be easily handle. The main things require for the preparation of vermicompost are farm waste, leaves of plants and cow dung etc. 6 pits will be constructed each of 6feet length and breadth and 3 feet deep. The bottom of the pit is made up to 2inch layer pieces of bricks and sand, this will facilate the drainage of water. The earth worms will be developed in the laboratory. The further procedure is carried out as follows, PRODUCTION FLOW CHART Collection of materials, formation of windrows & trimming
Pass composter machine to reduce the moisture up to 50%
10th - 15th day: Addition of Decomposing Culture
Pass the composter machine by interval of 3 days
Maintain the moisture in between 40 - 50 %
25th -30th day: Temperature of compost pile increases up to 60-700C
Pass the composter machine by interval of 2 days & maintain the moisture to reduce the temperature
45th - 55th day: Temperature of compost pile declines to 32-380C
55th - 60th day: Enrichment of Biofertilizers
70th - 80th day: Collection of sample for chemical and microbial analysis Randomly
Bagging
Management Team:
Name Qualification Job Salary(Rs) Mr.Rohan Deshmukh BS Biotechnology with minor in entrepreneurship Owner, administrative work and overall control Mr.Ganesh Dendukuri Bsc Biology and 7yrs experience as a biologist Lab Technician, developing cultures of bacteria and taking care of Lab 7000/- Mr.Vivek Patil Bcom and 5yrs experience as a marketing officer Marketing Officer, taking care of marketing and sales 6000/-
Other than this the team will also include two labors and two truck drivers. The job of labors will be to take care of the vermicompost pits and do the packaging of the fertilizers and also help in loading the items into the truck and the job of truck drivers would be to transport the product to the distributors and also to collect the city garbage. The labor as well as the drivers each will be paid Rs3000/- The salary of everyone will be raised after the first year.
Financial Plan:
The initial funds will be raised from the owner and also loan will be taken from the bank. Sources of funds: Mr. Rohan Deshmukh: Rs576000 Bank Loan: Rs864000 Total: Rs1440000
The estimated sale for each fertilizer for the first year will be 4800Kg and for vermicompost manure it would be 144000Kg. The estimated total income for the first year is Rs8640000 with a net profit of Rs407856.
Critical Risk:
Limiting factors organic produce market: . Lack of market information in general and organic market information in particular is biggest drawback for Indian agriculture. The current information base is low and even the limited information available does not get disseminated due to lack of adequate channels for dissemination. As a result farmers are in a predicament as they are unable to attune their production practices as per the market changes. Marketing network specifically for organic products has not yet developed both in the domestic as well as export market. . Quality of Indian food industry is always a constraint for growth, low consistency of quality and contamination in food products is a hindrance in capturing the available market especially the international market. . Given the high levels of transaction costs for getting farms certified as organic it is a major deterrent for enhancing organic production in the country. As the certification process for organic farming is very lengthy and complex, the cost of certification is also unaffordable for small farmers . Government has shown limited interest for organic agriculture, though the activities from government side are increasing but till date there is no direct support from government side in terms of subsidy or market support towards organic agriculture. . Lack of proper infrastructure in terms of roads from remote villages, cold storage facilities and slow transportation infrastructure affects the cost, quality and reach of producers and . Indian organic agriculture is very fragmented and there are no organizations for managing the entire value chain of organic products.
Balance Sheet:
Three years Statement:
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2022
