greeni rikdev bhattacharya vincenza 2011

8/3/2019 GreeNi Rikdev Bhattacharya VINCENZA 2011

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Business Plan Template and Mentoring by

GreeNiOne line Business Description:

Manufacturing and Marketing Biofertilizers; providing customized solutions

to the farmers along with a host of other augmented services

City : Bangalore

Operational Plant: Prakasham District, Andhra Pradesh

Stage : Conceptualizing and Envisioning

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Concept Overview/Business Description

Primary Activity: We plan to start up a venture that promises to offer millions of Indian

farmers a sustainable alternative to chemical fertilizers and chemicalpesticides by the use of Biofertilizers and Biopesticides.

Our target customer are the farmers who are using fertilizers in ruralareas of India

Augmented Activity: We will be setting up soil testing units. We plan to tie up with co-operatives and rural banks. We will provide training to the farmer regarding the usage and benefit of

biofertilizer.

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Team Rikdev Bhattacharya: Lead Finance (Strategy and Resource allocation)

Arindam Das: Lead Marketing (Promotions And Brand Building)

Suvarchala Chiravuri: Lead Production And Quality

K.Vanalakshmi: Lead Relationship Manager (Strategic Tie-ups)

M.Himabala: Lead Human Resources (Employees, Suppliers,Cooperatives And Other Channel Partners)

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Product / Service Description We plan to manufacture and market high quality bio-fertilizers to the

farmers across India and other neighboring SAARC nations

We would be providing a complete solution (Soil testing, Training,Expert advice ) to improve over all soil health and crop productivity

We would be providing customized solutions to the needs of thefarmers depending on the nature and texture of the farmland

We will be establishing a robust distribution channel, tying up witdealers, retailers, Co-operatives, Agri-banks, NGOs, Panchayats among others to help reach the farmers

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What is the size of the opportunity?Potential: Agriculture sector contributes 25% to the GDP As per the analysis, currently fertilizer consumption in India is 26.6

million tonnes a year Bio-fertilizers is required for the Indian agriculture market is 344,800-

507,032 tonnes Bio-fertilizers with an installed capacity of

18,500 tonnes The estimated demand for 2011-2012 is

28.5 million tonnes Hence we plan to fill in the demand-supply gap

green iMarke

t Segment of FertilizerIndustry in India ( in Million tonnes )


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What is the size of the opportunity?Potential:

India contributes 8% to the fertilizer exporting market; we can avail the opportunity of exporting our product to the SAARC nations to begin with

As most of the State Govts. across India prohibited the usage of chemicalfertilizers, there is a huge scope and opportunity for bio-fertilizers in the future

Our Target Markets: We will be targeting marginal(1-10 acres), medium (11-50 acres) and large (>50

acres) farmers through various channels of distribution1st Production Plant: Prakasham district, Andhra PradeshReason: Lower cost of production, closer vicinity to the farmers & local knowledge

We plan to operate from another plant in West Bengal in the near future which would cater to the needs of the farmers in the east and north-east of the country

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Business Model The market price of the liquid form of bio fertilizers is approximately around600-625 INR per liter.

Our Pricing Strategy: Penetrative PricingOur Products Selling Price: 575 INR per litre. i.e. at least 5% discounted rateas compared to our competitors.

The manufacturing, distributing and selling cost will be around 325- 350 INR per litre. The rest will be the profit to the company.

We also seek to establish tie-ups with the Central Government which providessubsidy for farmers for buying bio-fertilizers hence advocating the usage of eco-friendly Biofertilizers.

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R and D Soil Testing DataMaterials

Biofertilizers

STORAGE

Panchayat Pradhan/Influencers

Retail UnitsNGOs and Co-operatives

Agri-Banks andMicro-finance

Institutions

LargeFarmers

MarginalFarmers

MediumFarmers

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S T R E A

M O F C A S H F L O W

STREAM OF CASH FLOW

S T R E A M O F C A S H F L O W


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Implementation PlanPilot Survey at Prakasham District, Andhra Pradesh A team of Soil testers, R&D specialists and Lab technicians for regular inspectionMobile Soil testing centersProducts will be based on Soil testing centers and R&D reports; maintaining Quality

StandardsShot term contracts will be established with vendorsEmploying marketing executives who will reach individual farmers and demonstrate

about the product

Appointing villagers as our sales agents by providing them with adequate training Selling through co-operative societies, Zilla Parishads, Panchayats, Farmers Association

like NABARD association, NGOs and Self Help Groups

Multi Level Marketing Strategies

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Facility andManufacturing Unit

Monthly SoilTesting

Farmer

Storage Units

Panchayat Pradhan/Influencers

Retail UnitsNGOs and Co-operativesAgri-Banks andMicro-finance

Institutions

R and D Facility

Soil TestingCenters

Farmers Co -

operative

Farmer


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Your GoalsFor 2015 : To be present in all the states of India; exporting our product in all the major

SAARC nations

For 2014: Establish our second manufacturing plant in West BengalFor December 2012 : Establish Plant in the Prakasham District of Andhra Pradesh

For March 2012 : Undergo detailed market research understanding the key requirements

and the buying behavior of the farmers

Current achievements / status: We have formulated the basic plan tolaunch our product; shortlisted Prakasham district for doing the initial market research for our

product and thereby establishing the manufacturing unit

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Competitive LandscapeWho will you compete with?

Chemical and Bio-Fertilizer manufacturing companies, other local manure manufacturers

and Imported agricultural productsWhy would someone choose you over them?

Our promise of low cost , high quality and eco-friendly products and customized solutions

to the farmers along with a host of other augmented services

Why do you have a chance to be a dominant player?

Customized Solutions-a first ever by any other player in the market

Reaching even the remotest farmer through our robust distribution channel

Awareness camps and Adopting a farmer per village concepti green i


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Funding ObjectiveHow much do you need?

The total capital required is Rs. 93, 72, 000. The total fixed capital required is Rs.41,20,000and working capital is Rs. 13, 48, 000.

What do you need the money for?Fixed Assets (Equipments and Machinery)Leasing of facility Research and DevelopmentOperation & MaintenanceSalaries-Technical and administrativeSales and DistributionBranding & Marketing

TOTAL INVESTMENT

Partners 21,00,000 INR

External Sources 72,72,000 INR

Debt-Equity Ratio 3.4 : 1

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Exit Potential

How is the investor going to earn a good return?Our venture assure the investors a very a high ROI if and when he chooses

to exit. The following are the feasible options:1st Alternative: Reorganization and Recapitalization (increasing equity)2nd Alternative: IPO3rd Alternative: Merger with another bio-fertilizer company

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greeni rikdev bhattacharya vincenza 2011

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