biofertilizer business plan
DESCRIPTION
TRANSCRIPT
Bhoomiputra Bhoomiputra FertilizerFertilizer
Bhoomiputra Bhoomiputra FertilizerFertilizer
By Group:--8By Group:--8By Group:--8By Group:--8
COMPANY PROFILE
COMPANY NAME :BHOOMIPUTRA FERTILIZERCOMPANY NAME :BHOOMIPUTRA FERTILIZER
TYPE :PRIVATE LIMITEDTYPE :PRIVATE LIMITED
INDUSTRY :FERTILIZER INDUSTRYINDUSTRY :FERTILIZER INDUSTRY
HEAD OFFICE :MOGA, PUNJAB.HEAD OFFICE :MOGA, PUNJAB.
PRODUCT :VERMI COMPOST FERTILIZERPRODUCT :VERMI COMPOST FERTILIZER
TAG LINE :“KNOW THE FARMERS, TAG LINE :“KNOW THE FARMERS,
KNOW THE FUTURE”KNOW THE FUTURE”
MISSION STATEMENT
““we are here to provide the best natural we are here to provide the best natural fertilizers to the farmers to improve fertilizers to the farmers to improve the entire ecosystem and we want to the entire ecosystem and we want to serve the society in the best way by serve the society in the best way by caring their health through natural caring their health through natural products.”products.”
CONCEPT
Inter-related co-operationInter-related co-operation Benefit of both nature and humanity.Benefit of both nature and humanity. A profound impact on soil qualityA profound impact on soil quality Enhancing soil structure and fertilityEnhancing soil structure and fertility Maintain soil biological activities. Maintain soil biological activities.
ORGANIC AGRICULTURE
High quality of the crop
to avoid all form of pollution
To enhance the biological cycle
To work with the natural systems
To use renewable resources
To consider social & ecological system
Rectification pollution
& degradation
Organic Farming: Need of the Organic Farming: Need of the Hour Hour
Use of synthetic fertilizers, herbicides, pesticides, and Use of synthetic fertilizers, herbicides, pesticides, and
fungicides have polluted the agriculture land. fungicides have polluted the agriculture land.
Removal of micronutrients without replenishing them.Removal of micronutrients without replenishing them. Human health hazards and biodiversity.Human health hazards and biodiversity.
Due to soil, air and water pollution, the beneficial Due to soil, air and water pollution, the beneficial microbial load in the soil has reduced.microbial load in the soil has reduced.
Biogas Plant
Vermi Composting
Plant
Storage Plant
250ft
250ft250ft
200ft
200ft
200ft
50ft
150ft
250ft Offices
200ft
Warehouse
Cow Dung
Industrial Garbage
Research and Development
Unit
Filtering Plant
Packaging
ESTRACTING THE
EARTHWORM FROM
FERTILIZER
DRYING AND HARMONS MIXING
PACKAGING
EXTRACTING EARTHWORM
ROADR
OA
D
BACK
PLANT
HANDLE &
TRANSPORTWAREHOUSE
DEALERS / RETAILERS
COW YARD
SUPPLY CHAIN
COW YARD
COW YARD
COW YARD
INDUSTRY
INDUSTRY
INDUSTRY
MUNICIPALITY
MUNICIPALITY
MUNICIPALITY
FARMERS
FIELD STAFF PUSH-UP
DISTRIBUTORPUSH-UP
HANDLE &
TRANSPORT
HUMAN RESOURCE HUMAN RESOURCE
• ESTIMATION OF WORKFORCE REQUIREMENT ESTIMATION OF WORKFORCE REQUIREMENT
• RECRUITMENT AND SELECTION RECRUITMENT AND SELECTION
• TRAINING AND DEVELOPMENT TRAINING AND DEVELOPMENT
• PERFORMANCE APPRAISAL PERFORMANCE APPRAISAL
• REWARD REWARD
ESTIMATION OF WORKFORCE ESTIMATION OF WORKFORCE REQUIREMENTREQUIREMENT
MARKETINGMARKETING
CMOCMO
MARKETING EXECUTIVE = 5MARKETING EXECUTIVE = 5
SALES MANAGER = 10SALES MANAGER = 10
50 FIELD SUPERVISOR = 5050 FIELD SUPERVISOR = 50
OPERATIONSOPERATIONS
COOCOO
SUPERVISOR = 8SUPERVISOR = 8
OPERATION LABOR = 40OPERATION LABOR = 40
FINANCEFINANCE
CFOCFO
HEAD ACCOUNTANT = 2HEAD ACCOUNTANT = 2
ACCOUNTANT = 6ACCOUNTANT = 6
RESEARCH AND DEVELOPMENTRESEARCH AND DEVELOPMENT
SENIOR SCIENTIST = 1SENIOR SCIENTIST = 1
JUNIOR SCINTIST = 5JUNIOR SCINTIST = 5
HUMAN RESOURCEHUMAN RESOURCE
GENERAL MANAGER
CHIEF FINANCIAL OFFICERCHIEF FINANCIAL OFFICER
CHIEF MARKETING OFFICER
CHIEF OPERATIONAL OFFICERRESEARCH AND DEVELOPEMENT
CHIEF FINANCIAL OFFICER CHIEF FINANCIAL OFFICER
HEAD ACCOUNTANT(OPERATION AND PURCHASING)
HEAD ACCOUNTANT(MARKETING AND HUMAN RESOURCE)
ACC 1
ACC 2 ACC3 ACC1 ACC2
ACC3
CHIEF MARKETING OFFICERCHIEF MARKETING OFFICER
Marketing executive Marketing executive Marketing executive Marketing executive Marketing executive Marketing executive Marketing executive Marketing executive Marketing executive Marketing executive
Ten marketing Ten marketing supervisorsupervisor
Ten marketing Ten marketing supervisorsupervisor
Ten marketing Ten marketing supervisorsupervisor
Ten marketing Ten marketing supervisorsupervisor
Ten marketing Ten marketing supervisorsupervisor
2 Sales 2 Sales ManagerManager
2 Sales 2 Sales ManagerManager
2 Sales 2 Sales ManagerManager
2 Sales 2 Sales ManagerManager
2 Sales 2 Sales ManagerManager
CHIEF OPERATIONAL OFFICERCHIEF OPERATIONAL OFFICER
Two supervisor Two supervisor (Filtering Plant)(Filtering Plant)
Two Two supervisor supervisor
(Bio Gas (Bio Gas Plant)Plant)
Two supervisor Two supervisor (Vermicompost (Vermicompost
Plant)Plant)
Two Two supervisor supervisor (packaging (packaging
plant)plant)Eight field laborEight field labor Eight field laborEight field labor Eight field laborEight field laborSixteen field laborSixteen field labor
CHIEF SCIENTIST CHIEF SCIENTIST
Assistant Assistant lab boys lab boys
Assistant Assistant lab boys lab boys
Assistant Assistant lab boys lab boys
Assistant Assistant lab boys lab boys
Assistant Assistant lab boys lab boys
Employee payment scheduleEmployee payment schedule
Employee Designation Pay Scale
Chief Executive Officer 5 Lacs per Annum
Chief Operation Officer 3.5 Lacs per Annum
Chief Marketing Officer 3.5 Lacs per Annum
Chief financial Officer 3.5 Lacs per Annum
Marketing Executive 2.5 Lacs per Annum
Sales Manager 2 Lacs per Annum
Supervisor 1 Lac per Annum
Accountant 2 Lacs per Annum
Senior HR manager 2.5 Lacs per Annum
Junior HR manager 2 Lacs per Annum
Chief Scientist 3.5 Lacs per Annum
Junior scientist 2 Lacs per Annum
Labor 0.6 Lac per Annum
Employee Motivation :Bonus will be given to the brilliant performers.
Organization Culture:Transparency will be there within the organization.Unity of command will be their.
Health and safety:For each and every employee regular health checkup.Medical facility for the employees will be provided.
Employee retention policy:Promotional policy will be there for the good performers in each department.Career development opportunity will be given to the employees.
Human Resource Policies
CORPORATE SOCIAL RESPONSIBILITY
• HEALTH CONCIOUSNESS
• ECOFRIENDLY SYSTEM
• “BHOOMISEVA” PLANTATION PROGRAM
• FREE SOIL TESTING AND WATER TESTING FOR FARMERS
STRENGTHSTRENGTH
•GOOD QUALITY AND NEAR TO THE GOOD QUALITY AND NEAR TO THE MARKET.MARKET.•HEALTH CARE FERTILIZERS.HEALTH CARE FERTILIZERS.•STRONG SUPPLY CHAIN MANAGEMENT STRONG SUPPLY CHAIN MANAGEMENT •PRICE, VALUE TO THE CUSTOMERS AND PRICE, VALUE TO THE CUSTOMERS AND QUALITATIVE PRODUCTS.QUALITATIVE PRODUCTS.•NEW TECHNOLOGY INNOVATIVENESS IN NEW TECHNOLOGY INNOVATIVENESS IN PRODUCTION.PRODUCTION.
WEAKNESSWEAKNESS
•NEW IN THIS AREA.NEW IN THIS AREA.•FARMERS ARE NOT HABITUAL TO USE FARMERS ARE NOT HABITUAL TO USE ORGANIC FERTILIZERS.ORGANIC FERTILIZERS.•NO BRAND EQUITY AND IMAGENO BRAND EQUITY AND IMAGE
OPPORTUNITYOPPORTUNITY•LESS COMPITITIVE MARKET LESS COMPITITIVE MARKET •EASY AVAILABILITY OF RAW MATTRIAL.EASY AVAILABILITY OF RAW MATTRIAL.•NEW MARKETNEW MARKET•FUTURISTIC MOVE. FUTURISTIC MOVE. •HEALTH CONCIOUS HEALTH CONCIOUS •GOVERNMENT SUBSIDIESGOVERNMENT SUBSIDIES
THREATSTHREATS
•ENVIRONMENTAL EFFECT IS VERY HIGH.ENVIRONMENTAL EFFECT IS VERY HIGH.•LACK OF SKILLED WORKERS IN THIS LACK OF SKILLED WORKERS IN THIS AREA.AREA.•FARMERS DEMAND IS TO GIVE QUICK FARMERS DEMAND IS TO GIVE QUICK RESULTS.RESULTS.
SWOT ANALYSIS
MARKETING STRATEGYMARKETING STRATEGY
PRE EXECUTIONPRE EXECUTIONMARKETINGMARKETING
POST EXECUTIONPOST EXECUTIONMARKETINGMARKETING
PRE EXECUTIONPRE EXECUTION
•AREA IDENTIFICATIONAREA IDENTIFICATION
•MASS MASS CAMPAINING CAMPAINING
•VILLAGE MEETINGVILLAGE MEETING
•TARGETING OF POTENTIAL FARMERTARGETING OF POTENTIAL FARMER
POST EXECUTIONPOST EXECUTION
•MASS CAMPAINING
•PUBLICITY
•MEGA FARMER MEETING
•PRODUCT DISPLAY
•DEMONSTRATION
PUBLICITY
Literature distributionLiterature distribution
Wall paintingWall painting
Shop paintingShop painting
Farming equipment paintingFarming equipment painting
Press news coveragePress news coverage
Print mediaPrint media
Local radioLocal radio
Demonstration
Result demonstrationResult demonstration
Crop specific demonstrationCrop specific demonstration
Result group demonstration Result group demonstration
GURDASPURAMRITSAR
HOSIYARPUR
KAPURTHALAJALANDHAR
NAWANSHAHAR
FIROZPURFRIDKOT
MOGAMUKTSAR
LUDHIYANABATHINDASANGRUR
FATEHABADPATIALARUPNAGARMANSA
MARKETING EXECUTIVE 1
MARKETING EXECUTIVE 2
MARKETING EXECUTIVE 3
MARKETING EXECUTIVE 4
MARKETING EXECUTIVE 5
BRANDING & positioning
• As “Bhoomi Seva, Kishan Seva”.As “Bhoomi Seva, Kishan Seva”.
• Emotional attachment with farmersEmotional attachment with farmers
• Health conscious productHealth conscious product
MISCELLANEOUS CALCULATIONSMISCELLANEOUS CALCULATIONS
Item NameItem Name Sale Price/unitSale Price/unit(QUENTAL)(QUENTAL)
QuantityQuantityDemandedDemanded(annually)(annually)(QUENTALS)(QUENTALS)
Total Sale ValueTotal Sale Value( Rs.)( Rs.)
BHOOMIPUTRA BHOOMIPUTRA VERMICOMPOST VERMICOMPOST DIAMONDDIAMOND
500500 6000060000 3 CRORES3 CRORES
TOTAL SALESTOTAL SALES 3 CRORES3 CRORES
1) TOTAL SALES REVENUE:
2) COST OF RAW MATERIAL (in lac)
CAPACITY OF 1 BAG OF VERMI FERTILIZERS = 100 kg No. OF BAGS = 60000 COW-DUNG (INCLUDING TRANSPORTATION) = 50 * 60000 = Rs 30 LACS SPECIAL HARMONES = 30 * 60000 = Rs 18 LACSTOTAL RAW MATERIAL COST = Rs 48 LACS
3) WAGES AND SALARY (in Lacs)LABOUR COST = Rs 24SALARIE = Rs 116.2WAGES = Rs 13.5
•SELLING & DISTRIBUTION EXPENSES:SELLING & DISTRIBUTION EXPENSES: = RS24 = RS24
•CSR FUND = RS 5CSR FUND = RS 5
•PRE EXECUTION MARKETINGPRE EXECUTION MARKETING ( (PROMOTION)PROMOTION) =RS 25 =RS 25
•PROMOTION EXP. = RS 20PROMOTION EXP. = RS 20
•ELECTRICITY CHARGESELECTRICITY CHARGES = RS 2 = RS 2
•ESTABLISHMENT COSTESTABLISHMENT COST = RS 15 = RS 15
•PACKAGING COSTPACKAGING COST 2% OF SALE = RS 6 2% OF SALE = RS 6
(Rs In Lacs)(Rs In Lacs)
12) DEPRECIATION ON FIXED ASSETS: (Rs In Lac)
PARTICULARSPARTICULARS
RATERATE OF OF DEP.DEP.
INVINV DEPDEPAFTERAFTERIst yearIst year
W.D.VW.D.V DEPDEPAFTERAFTER22ndnd year year
W.D.VW.D.V
LANDLAND ------ 99 ---------- 99 ------ 99
EARTH WARMEARTH WARM -------- 11 -------- 11 ------ 11
R&DR&D -------- 1010 ------ 1010 ------ 1010
FURNITURE & FIXTUREFURNITURE & FIXTURE 10%10% 22 .2.2 1.81.8 .2.2 1.61.6
PLANT AND BUILDING PLANT AND BUILDING
10%10% 2525 2.52.5 22.522.5 2.52.5 2020
MACHINERYMACHINERY 10%10% 5500 55 4545 55 4040
OTHER FIX ASSETOTHER FIX ASSET(IT EWUIPMENTS)(IT EWUIPMENTS)
10%10% 33 .3.3 2.72.7 .3.3 2.42.4
TOTALTOTAL 100100 88 9292 88 8484
(Note: Depreciation is charged @ 10% on Straight Line method. All figures are in Lacs)(Note: Depreciation is charged @ 10% on Straight Line method. All figures are in Lacs)
8) Financial cost: (Rs In Lacs)
S. No.S. No.ParticularsParticulars 11stst Year Year 22ndnd Year Year
0101 Interest on Long Term Interest on Long Term LoanLoan 2.772.77 2.382.38
0202 Interest on Working Interest on Working Capital Capital 1.751.75
1.751.75
TOTALTOTAL
4.524.52
4.14.1
Loan is taken from NABARD, which is providing us loan at the rate of 7.5% for Loan is taken from NABARD, which is providing us loan at the rate of 7.5% for Organic Farming.Organic Farming.
WORKING CAPITAL REQUIREMENT STATEMENT:- (RS In Lacs)
S. No.S. No. ParticularsParticulars % of % of margimarginn
Holding PeriodHolding Period Total Total Amt. Amt. Invest.Invest.
Max per Max per finance finance by Bank by Bank (75%)(75%)
Own Own Fund Fund (25%)(25%)
AA Current AssetCurrent Asset1.1.STOCKSTOCK-Raw MaterialRaw Material-Work In ProcessWork In Process-Finished GoodsFinished Goods1.1.DebtorsDebtors
2525252525252525
1/21/2 month of month of purchasepurchase¼ month of sales¼ month of sales½ month of sales½ month of sales1 month of sales1 month of sales
226.256.25
12.5012.502525
1.41.44.374.378.758.7517.517.5
1.61.61.881.883.753.75
7.57.5
TOTALTOTAL 45.7545.75 32.0232.02 13.7313.73
BB Current LiabilitiesCurrent LiabilitiesCreditorsCreditors
1 month of purchase1 month of purchase 12.5012.50 8.758.75 3.753.75
TOTALTOTAL 12.5012.50 8.758.75 3.753.75
NET WORKING CAPITAL (A-B)NET WORKING CAPITAL (A-B) 33.2533.25 23.2723.27 9.989.98
)
COST OF PROJECT:- (Rs In Lacs)
INVEST IN FIXED ASSETSINVEST IN FIXED ASSETS-LAND-------------------------- 9 LAND-------------------------- 9 -PLANT AND BUILDING-------- 25PLANT AND BUILDING-------- 25-MACHINERY----------------------- 50MACHINERY----------------------- 50-FURNITURE & FIXTURE-------------- 2FURNITURE & FIXTURE-------------- 2-IT EQUIPMENT----------- 3IT EQUIPMENT----------- 3-R&D ---------------------------- 10R&D ---------------------------- 10-EARTH WORM 1EARTH WORM 1
100100
INVEST IN WORKING CAPITALINVEST IN WORKING CAPITAL 33.2533.25
INVEST IN PRELIMINARY EXPENCESINVEST IN PRELIMINARY EXPENCES 4040
TOTALTOTAL 185.75185.75
MEANS OF FINANCE
LOAN FROM BANK:
(RS In Lac)
LONG TERM LOAN 37
WORKING CAPITAL LOAN 23.27
OWN INVESTMENT: 79.98
SUBSITY 33
TOTAL 185.75
LOAN RE-PAYMENT SCHEDULE:-:---(RS In Lac)
YEAR
AMOUNT
INTEREST @7.5% pa
INSTALLMENT PAID
1 OPENING 37 2.8 5.28
CLOSING 31.72
2 OPENING
31.72 2.38 5.28
CLOSING 26.44
3 OPENING 26.44 1.98 5.28
CLOSING 21.16
PROJECTED PROFITABILITY STATEMENT:---(Rs In Lac)PARTICULARS 1st Year 2nd Year
INCOME
SALES 300 330
TOTAL 300 330
OPERATING EXPENCES:
RAW MATERIAL 48 52.8
WAGES 13.5 13.5
LABOUR 24 24
TOTAL 85.5 90.3
OPERTING PROFIT 204.5 209.5
SALARY 116.2 116.2
ELECTRICITY 2 2
ESTABLISHMENT COST &PRE. EXECUTION (WRITTEN OFF)
8 8
PACKAGING 6 6.6
SALES AND DIS. EXP. 24 24
PROMOTION EXP. 20 15
INTEREST 4.52 4.1
DEP. 8 8
TOTAL 193.72 188.9
PROFIT 20.78 50.8
PROJECTED FUND FLOW STATEMENT
PARTICULARSPARTICULARS 11stst Year Year 22ndnd Year Year
SOURCE OF FUND:SOURCE OF FUND:
OPENING BALANCEOPENING BALANCE ---- 31.531.5
LOAN FROM BANK:LOAN FROM BANK:
LONG TERM LOANLONG TERM LOAN 3737 ----------------
WORKING CAPITAL LOANWORKING CAPITAL LOAN 23.2723.27 ------------------
SUPPORT FROM CREDITORSSUPPORT FROM CREDITORS 12-5012-50 --------------
SUBSITYSUBSITY 3333
OWN INVESTMENTOWN INVESTMENT 79.9879.98 ----------------
FUNDS FROM OPERATIONFUNDS FROM OPERATION
PROFIT AFTER TAXPROFIT AFTER TAX 20.7820.78 50.850.8
DEPRECIATIONDEPRECIATION 88 88
PRELIMINARY EXPENCESPRELIMINARY EXPENCES 88 88
TOTALTOTAL 222222.05.05 98.398.3
APPLICATION OF FUND
INVESTMENT IN FIXED ASSETS 100
-------
INVESTMENT IN WORKING CAPITAL
45.75 --------
INVESTMENT IN PRELIMINARY EXPENCES
40 -------
LOAN REPAYMENT 5.28
5.28
TOTAL 191.03 5.28
CASH 31.5 93.02
PARTCULARS 1st Year 2nd Year
1: LIABILITY
OWN FUND 112.98 112.98
GENERAL RESERVE 20.78 71.58
LONG TERM LOAN 31.72 26.44
SUNDRY CREDITOR 12.5 12.5
WORKING CAPITAL LOAN 23.27 23.27
TOTAL 201.25 246.77
PROJECTED BALANCE SHEET :---(Rs In Lac)
2:APPLICATION OF FUND (RS In Lac) (RS In Lac)
FIXED ASSETS (NET BLOCK) 92 84
CURRENT ASSETS:
STOCK & DEBTOR 45.75
45.75
CASH 31.5 93.02
3:MISCELLANEOUS EXPENDITURE:
PRELIMINARY EXPENCES 32 24
TOTAL 201.25 246.77
RATIO 1ST YEAR 2ND YEAR
DEBT EQUITY
RATIO .28 .23
NET PROFIT RATIO 6.9% 15.39%
DEBT SERVICE COVERAGE RATIO
2.93 6.94
CURRENT RATIO 6.18 11.10
Important ratios
ReferencesReferences
Verma TS, Sharma RP, and Sanjay Kr Sharma, Verma TS, Sharma RP, and Sanjay Kr Sharma, 2006. “Organic farming in Indian perspective”2006. “Organic farming in Indian perspective”
Atul and Pratap, Tej 2004. “Organic agriculture- Atul and Pratap, Tej 2004. “Organic agriculture- national standards and farmers innovations”national standards and farmers innovations”
Sarkar AK, and Sharma SP, 2006. “Management Sarkar AK, and Sharma SP, 2006. “Management of acidic soils- current issues and policy of acidic soils- current issues and policy guidelines.”guidelines.”
Singh GP and Singh Jitender, 2007. “Organic Singh GP and Singh Jitender, 2007. “Organic farming in India”.farming in India”.
Subhash Sharma 2005, “Three roads to Subhash Sharma 2005, “Three roads to development of Indian agriculture.” development of Indian agriculture.”
Mehra Madhav, 2006. “A new concept for Mehra Madhav, 2006. “A new concept for environmental management”. environmental management”.