1. MODULE NO. : ABEL-ECON-4711
Title : Project Planning, Formulation & Evaluation
of High valued Crop
Protected cultivation of Gerbera
Credit : 20=0+20
Presented By: 1. Kale Amit R.
2.Waghmare Rahul S.
3. Methodology
Site Selection:-
Policy Decision Taken by Government of Maharashtra at 5th July 2002
to Boost the Floriculture Industry.
Due To Favourable Climatic Condition A Floriculture Park Was
Established in Maval Taluka At Talegaon Dhabade.
In the Floriculture Park , A Ideal Gerbera Producer V.D.Patil Sir’s Farm
Was Selected for Our Experiential Learning.
Method of Data Collection:-
I. Primary Data:-
1.Discusion With Entrepreneur , Supervisor , Labour.
2.Market Intermediary.
II. Secondary Data:-
1.Records.
2.Bank.
3.Internet.
4. Analysis of Data:-
1.Tabular Method.
2.Simple Average Method.
3.Diffrent Graphs and Charts.
Analytical Tools:-
1.Current Ratio.
2. Liquidity ratio.
3. Turnover ratio.
4. Profitability ratio.
5. Net Income.
6.B:C ratio.
7.IRR.
5. NAME OF POLYHOUSE
NAME OF OWNER Mrs. Vijaya Vijay Patil
AGE 55 Years
EDUCATION B. A
TEL. NO. 9822301119
TYPE OF POLYHOUSE SAW TOOTH
TYPE OF OWNERSHIP INDIVIDUAL
CATEGORY OF POLYHOUSE SMALL
YEAR OF ESTABLISHMENT 2006
AREA 141 R
GROWING CROP Gerbera
VARIETY Savhana, Danailin ,Zingaro,
Goliath, Rosalian
Dalama
Profile
7. 1. Importance Of High-tech Agriculture
Best way to utilizing the Potential of Gerbera.
Extend support to GM plants or plant bio-technology
Efficient utilization of chemicals and Fertilizers.
Water requirement of crops very limited and easy to
control.
The yield may be 10-12 times higher(a life line for
small land holders)
Export oriented view.
Major beneficiary to small holding farmer.
8. • Gerbera flowers are Beautiful and attractive.
• Available in Different type of colours.
• Used in Decorations of various Events.
• Used in Bouquet.
• Gerbera as cut flowers Used in Flower Pots.
• Used in Dry Flowers Industry.
• Possibility to Export.
• Scope for Research and Development in local
condition.
2. Importance and Scope of Gerbera Flowers
9. Source: Indian Horticulture Database-2011
Area and Production of Flowers In INDIA
YEAR
AREA PRODUCTION
(IN 000' HA)
LOOSE CUT
(IN 000' MT) Million Flowers
2006-07 144 880 37175
2007-08 166 868 43654
2008-09 167 987 47942
2009-10 183 1021 66671
2010-11 191 1031 69027
10. Source: Indian Horticulture Database-2011
Area and Production of Flowers In INDIA
Production
Loosein000’MT
CutinMillionFlowers
0
10000
20000
30000
40000
50000
60000
70000
2006-07
2007-08
2008-09
2009-10
2010-11
144 166 167 183 191880 868 987 1021 1031
37175
43654
47942
66671 69027
Years
Area Loose Flowers Cut Flowers
11. S TAT E
AREA
(in 000 ha)
PRODUCTION
(in 000 MT and Cut in Lakh Nos)
2008-
09 2009-10 2010-11
2008-09 2009-10 2010-11
LOOSE CUT LOOSE CUT LOOSE CUT
TAMILNADU
29.14 32 32 233.7 0 247.3 0 247.3 0
West Bengal
21.07 21.9 23.1 52.00 21232 55.2 22170 59.2 23919
Karnataka
26 27 27 203.9 5867 203.9 5860 203.9 5860
Maharashtra
16.4 17.5 17.5 89.4 5728 91.1 7914 91.1 7914
OTHER
73.91 84.5 91.3 408.4 15115 423.1 30727.4 429.8 31334.4
INDIA 166.52 182.9 190.9 987.4 47942 1020.6 66671.4 1031.3 69027.4
Source: Indian Horticulture Database-2011
Area and Production of Flowers In States
13. To work out cost of erection of Polyhouse of selected Unit.
To estimate cost of Gerbera production of selected Unit.
To study the market management aspects of Gerbera Flowers
of the selected Unit.
To estimate the Profitability of selected Gerbera Flowers
Unit.
To study the problems in the production and marketing of
Gerbera Flowers.
O B J E C T I V E S
14. Government Schemes
NHB
• Offers 20% Subsidy on project cost limited to ₹ 25
lakh /project.
NHM
• Gives 50% Subsidy
• Up to 1 Acres
APEDA
• 25% For Cold Storage.
• Warehouse and Godowns.
GOI and
GOM
• Gives Subsidy for Irrigation System.
15. Country
2008-2009 2009-2010 2010-2011
Qty Value Qty Value Qty Value
United States 7,111.5 7,213.5 5871.1 5,305.6 7153.9 5686.5
Germany 3,589.8 3,966.3 3688.2 4065.0 4511.6 4280.6
Netherland 4,640.2 5,987.2 3146.3 4217.9 2989.5 4162.0
United Kingdom 4,369.7 4,284.5 3707.3 3788.3 4116.0 3761.8
Japan 965.3 1,791.0 970.9 1558.7 576.7 1,151.9
United Arab
Emitates 762.7 991.8 971.7 1071.1 812.8 959.1
Italy 1268.3 1,373.3 1453.7 714.4 1,234.0 856.8
Canada 782.4 1,135.3 534.1 769.0 532.8 798.4
Belgium 1,084.3 845.5 470.2 484.4 762.0 774.3
Ethiopia 99.0 1,657.0 706.2 1,746.7 69.1 633.5
Other 6,125.4 7,636.0 5294.4 5,625.6 5,017.8 5,580.5
Total
30,789.3 36,881.4 26,814.5 29,446.4 27,776.2 28,645.4
Qty in Mt
Value in Lakhs
Source: Apeda Website February 2012
Export of flowers from India
17. Particulars
April May June July August
1
w
k
2
w
k
3
w
k
4
w
k
1
w
k
2
w
k
3
w
k
4
w
k
1
wk
2
wk
3
wk
4
wk
1
wk
2
wk
3
wk
4
wk
1
wk
2
wk
3
WK
Land Development
Greenhouse
foundation
Bedding material
Application : Red soil
FYM
Rice Husk
Greenhouse Erection
Polythene fitting
Bedding Material
Mixing
Fumigation
Bed Preparation
Drip &Misting System
Spraying System
Hosing Tap
Mixing of Neem cake
,Silica dust,Sterameal
Wormicompost
Mixing Besal Dose
Plantation
Labour quarter
Commencement Of
Flower
PROJECT CALENDER
30. 1.To Maintain
Health of Plant.
2.Size of Flowers
Dis-budding De-Leafing
(To loose the top soil of
the beds.)
1.Aeration.
2.Weeding.
Raking
Special Cultural Practices in Gerbera
1. Sanitation.
2. Bud Initiation
42. Process of HRM
Selection of Labour or Supervisor
Training
1.On Job Training.
2.Off Job Training.
Evaluation of Labour
Recruitment
1.Internal Sources.
2.Extrnal Sources.
Motivation
1.On time Payment
2.offers Bonus
Promotion
47. SITE SELECTION CRITERION
Soil Ph 5.5 to 6.5 & EC less than 0.5 ms/cm
Continuous water source
Water Ph 5.5 to 7 & EC less than 0.3 ms/cm
construction- higher than the surrounding land
Scope for future expansion
Communication , Road & Market facility
Availability of cheap labour
Trees at least 30 m apart
59. • High production
• Good product quality
• Proper harvest planning
• Risk management (prevention of calamities)
• Optimum greenhouse climate in view of crop condition
• Cost management
64. SR.
NO.
PARTICULARS
AMOUNT
( ₹)
PERCE
NT
(%)
1.
Cost of construction material for
framed structure @ ₹ 400 per
sq.m. 8,32,000
90.9
2.
Cost of labour for construction
of framed structure @ 10%
83,200
9.09
Total construction cost
9,15,200
100
Cost of Construction of framed structure
65. SR.
NO.
PARTICULAR
AMOUNT
( ₹)
PERCENT
(%)
1
Construction cost of
framed structure 9,15,200
61.98
2 Cost of planting material 3,40,200 23.04
3
Cost of irrigation & fogger
systems 2,21,154
14.98
TOTAL 14,76,554 100
Total Cost Erection Cost Of Polyhouse
Total cost of erection of polyhouse =₹14,76,554/-
Per unit Cost of erection = ₹709.88/sq.mt.
66. Sr.
No.
Particulars
Cost
(₹)
1
a . Fixed Assets (Cost –B+C) 2065190.00
c. Working Capital for one Year (2011-12) 710209.21
Subtotal: 2775399.21
2
Means of Finance
a. Owners Capital Investment 415190.00
b. Term Loan from Bank 1650000.00
Subtotal: 2065190.00
Expected Assistance from NHB 410000.00
3
Bank Finance Required
a. Term Loan 1650000.00
b. Cash Credit 710209.21
Crop:-Gerbera
Area:-2080 Sq.M.(52M.×40M.)
Spacing:-30cm×35cm.
No of Plants:-12600
FINANCIAL OUTLAY OF THE PRJECT
67. Sr.No. Particulars Unit Quantity
Rate
Total Cost
(₹)
A. 1.Land Cost (@₹2.40 lakhs/acre) Acre 0.5 240000 120000
B. Fixed Capital
1 Greenhouse Erection. Sq.M. 2080 440 915200
2 Shade Net Sq.M 2080 18 37440
3 Drip and Fogging System Sq.M. 2080 80 166400
4 Spraying System Extension No. ₹
1.HTP 1 9900 9900
2.3 HP Motor 1 7900 7900
3.5 HP Motor 1 12824 12824
4.1.5 Hp Motor 1 6250 6250
5. Genset 1 32000 32000
6.Other Charges - 17880 17880
Sub Total 86754
5 Labour Quarter(1) Sq.ft. 120 275 33000
6 Water Storage Tank 122000
7 Tools and Equipments 15000
TOTAL-(B): 1375794
PROJECT COST
68. Sr.No. Particulars Unit Quantity
Rate
Total Cost
(₹)
A. 1.Land Cost (@₹2.40 lakhs/acre) Acre 0.5 240000 120000
B. Fixed Capital
1 Greenhouse Erection. Sq.M. 2080 440 915200
2 Shade Net Sq.M 2080 18 37440
3 Drip and Fogging System Sq.M. 2080 80 166400
4 Spraying System Extension No. ₹
1.HTP 1 9900 9900
2.3 HP Motor 1 7900 7900
3.5 HP Motor 1 12824 12824
4.1.5 Hp Motor 1 6250 6250
5. Genset 1 32000 32000
6.Other Charges - 17880 17880
Sub Total 86754
5 Labour Quarter(1) Sq.ft. 120 275 33000
6 Water Storage Tank 122000
7 Tools and Equipments 15000
TOTAL-(B): 1375794
PROJECT COST
69. C Capital Cost : Unit Qty. Rate I II III IV V VI
1 Land Preparation
a. Ploughing Acre 0.5 1500 750
b. Harrowing Acre 0.5 1500 750
c. Levelling Acre 0.5 21000 10500
d. Murum Brass 90 325 29250
Total Land Preparation 41,250
2 Bed Preparation
a Red Soil Brass 180 667 1,20,060
b FYM Brass 80 1200 96,000
c Wormicompost Mt 8.3 3000 24,900 24,900
d. Neem Cake Mt 2 8000 16,000 16,000
e Rice Husk Mt 8.3 2000 16,600
f Single Super Phosphate Mt 0.3 3500 1,050 1050
g Fumigation Sq.M. 2080 4 8,320
h Labour Charges (Bed Prep
n
) Sq.M. 2080 9 18,720
Total Bed Preparation 3,01,650 41950
B Planting Cost:
a. Planting Material Per plant 12600 27 3,40,200 18000
b. Transport Per plant 12600 0.12 1,512 200
c. Planting Cost (Labour) Sq.M. 2080 2.3 4,784
Total Planting Cost 3,46,496 18200
TOTAL C: 689396 60150
TOTAL (A+B+C): 2185190
70. Sr. No. Particulars Unit Quantity
Rate Total Cost
(₹) (₹)
1 Manures & Fertilizers per month 12 7,902.5 94830
2 Intercultural & Labours per month 12 10900 130800
3
Plant Protection and GR per month
12 5,800 69594
4
Transportation and
Commission
per month
12 5,385 49260
5 Packing Material per flower 6,04,800 0.28 169344
6 Supervision Charges per month 12 4,000 48000
7 Light charges per month 12 767 9204
8 Water charges per month 12 1325 15900
9 Phone Bill per month 12 400 4800
10 Depreciation Yearly 94477.21
11 Other expenses per month 12 2000 24000
TOTAL 710209
Working Capital Requirement (2011-12)
71. Sr.
No
Particulars Cost per Year
I II III IV V VI
C Recurring Cost:
a. Manures & Fertilizers 29,895 55711 65524 69972 70625 94830
b. Intercultural & Labour 45,500 87000 94800 96000 105000 130800
c. Plant Protection and
GR
29,275 58570 59690 63570 66251 69594
d. Supervision 21,000 39000 42000 42000 45600 48000
e. Light Charges 5,369 9204 9240 9420 9540 9204
f. Water Charges 3,969 6840 7110 16425 16650 15900
g. Phone Bills 3,500 2400 3000 3240 3000 4800
h. Other Charges 5,000 3500 2000 3500 2500 24000
i. Packaging 60,367 129416.7 138210.8 139286.6 155102.2 169344
j. Transport and
Commission
27,555 47100 48180 48540 47640 49260
Total-C 2,31,430438741.7 469754.8 491953.6 521908.2 615732
Yearly Working Capital Requirement
79. SR. NO. YEAR BENEFIT COST NET RETURN D.F. 12% NPW
1 2006-07 721525 2532619 -1811094 0.8929 -1617049
2 2007-2008 1571489 762544 808945 0.7972 644886
3 2008-09 1639683 692530 947153 0.7118 674165
4 2009-2010 1526349 682571 843778 0.6355 536236
5 2010-11 1539091 632198 906893 0.5674 514596
6 2011-2012 1534578 710209 824369 0.5066 417651
TOTAL 1170485
Net Present Worth
NPW is Positive hence the Selected Gerbera Unit financially
Feasible so the Project is accepted.
Conclusion:-
80. SR.
NO.
YEAR BENEFIT COST D. F. 12% PWB PWC
1 2006-07 721525 2532619 0.8929 644218 2261267
2 2007-2008 1571489 762544 0.7972 1252781 607895
3 2008-09 1639683 692530 0.7118 1167094 492930
4 2009-2010 1526349 682571 0.6355 970022 433786
5 2010-11 1539091 632198 0.5674 873322 358726
6 2011-2012 1534578 710209 0.5066 777465 359814
TOTAL 5684903 4514418
B:C = 1.259277
Benefit Cost Ratio
Benefit Cost Ratio is >1 hence the Selected Gerbera Unit
financially Feasible so the Project is accepted.
Conclusion:-
81. SR.
No.
YEAR
NET
RETUR
N
D. F. 25% D. F. 30%
NPW @
L.D.R
NPW @
H.D.R
1 2006-07 -1811094 0.8000 0.7692 -1448876 -1393150
2 2007-2008 808945 0.6400 0.5917 517725 478666
3 2008-09 947153 0.5120 0.4552 484942 431112
4 2009-2010 843778 0.4096 0.3501 345611 295430
5 2010-11 906893 0.3277 0.2693 297171 244253
6 2011-2012 824369 0.2621 0.2072 216103 170790
TOTAL = 412677 227100
IRR 36.12
Internal Rate Of Return
Conclusion:-
IRR is > Lower Discounting Rate hence the Selected Gerbera
Unit financially Feasible so the Project is accepted.
When D.F. Is 38% then NPW is nearly Zero and B:C Ratio =1 hence IRR is 38%
82. BEP
BEP= Fixed Cost
(Selling Price Per Unit –Variable Cost Per Unit)
BEP= 2185190
(2.59-1)
BEP= 13,74,333 Stem
Pay Back Period =2 Years and 9 Months
83. Sr.
No.
Packaging
material
Qty Rate
(kg)
Box
(₹)
Bunch
(₹)
1 Box 1 50 50
2.86
2 Rubber 150 215 6
3 Poly Bag 500 120 75
4 Patti 3 80 3.52
5 Clip 3 60 8.82
Total 143.34
Packaging Material Cost
Per Bunch Packaging Cost of Gerbera Flowers is 2.86 ₹
Conclusion:-
86. Flow Chart for Obtaining the NHB Subsidy
Project Report Preparation By Promoter
Submission of Application to Bank / FI for Term Loan (40% min.)
Request to NHB by Bank/ FI for In Principal Approval along with Brief Project Profile.
Issue of Case No By NHB to Bank/ FI
Release of Term Loan by Bank/FI Promoter
87. Submission of II Joint Inspection Report to NHB HQ By State Office of NHB.
Presentation of Project for II Release.
Release of II and Instalment of Subsidy to Bank /FI by NHB HQ.
Only One Inspection Where NHB Subsidy is up to Rs.10 Lacks.
After Release of Term Loan Bank /FI write to NHB State Office for I joint Inspection of
Project.
Continue.....
88. 8 “A”.
7 “A” & 12.
Quote of Plants.
Quote of Irrigation .
Quote of Polyhouse.
Blue Print of Polyhouse.
Bed Layout.
Economic Projections .
General Details of Crop & Marketing Scope .
Owners Details.
Soil & water Analysis Report.
Technical Back-Up Letter.
List of Documents Required for Project Report Submission to
Bank
89. 1) G.H. Erection Contract Labour Quotation.
2) Plastic Quotation.
3) Plant Quotation.
4) Drip System Quotation.
5) Plastic Fixation Material Quotation.
6) Red Soil Suppliers Quotation.
7) Sand Suppliers Quotation.
8) Shading Net Quotation.
9) Fertilizer Quotation.
10)Insecticide /Fungicide Quotation.
List of Quotations Required to Attached with Loan Proposal
90. Procedure for Sanctioning the Bank Loan
Application for Loan to Bank
Pre Sanction Visit of Bank
In Principal Approval/Sanction of Loan by Bank
Request to NHB by Bank to issue LOI
Bank Sanctioning Authority
Detailed Document Submission to Bank
Loan Disbursement
AB-I to AB-III
91. Marketing Channel of Gerbera
Producer
Retailer
Consumer
Producer
Wholesaler
Retailer
Consumer
Producer
Consumer
I II III
95. SWOT
Analysis
Better Management.
Export Level Quality .
Effective Marketing Strategy.
Proper Utilization of Land.
Use of Waste Material in the Farm.
Organic Farming Partially.
Ideal Project for Research work.
Sanitary.
Better Supervision By Owner.
Strength Weakness
No Bargaining.
Lack of Export.
High Packaging Material Cost.
Unskilled Labour.
Opportunity
Export the Gerbera Flowers
Increase the Source of Income through
allied Enterprises .
Threats
Changes in Government
Polices.
Increasing Number of
Competitors
Fluctuation in Market Rates
96. Sr.No. Problem Area Problems Suggestions
1. Owner 1.Diversification of Labours 1.Provide Best Facilities.
2.Market Price Fluctuation. 2. Fix Marketing.
2. Technical 1.Problems in Expiry Date of
Chemicals and Fertilizers.
1.Inventory Management.
2.Forecasting.
Problems and Suggestions
98. CONCLUSIONS
1. Total cost of construction of framed structure is
₹ 9.152 Lakh
2. Total cost of erection of polyhouse structure is
₹ 14.76554 Lakh i.e. ₹ 709.88 per sq.m.
2. Total cost of production per bunch is ₹ 10
3. The average rate of flowers per bunch is ₹ 25.90
99. 6. The Pay back period for the selected polyhouse owner is 2 years 9
months.
7. The NPW of Gerbera Crop is positive hence Project is Financially
Feasible and Accepted.
8. The estimated Benefit Cost ratio is 1.26 which is Greater than 1 so
Project is Financially Feasible and Accepted.
9. IRR= 38%
10. BEP= 13,74,333 Stem
100. 1) Horticulture training centre (HTC),Talegaon Dabhade.
2) www.htcindia.org
3) Videos from “Nimitya” enterprises on “polyhouse and shed net
technology”
4) www.masam.com
5) www.apeda.org
6) Green house management of horticulture, by S.PRASAD .G.K, Agro
bios publication.
7) Green house operation and management by Paul.V.Nelson.