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    Gladiolus Cultivation Project Assessment: Details of 1.0 Acre Cultivation

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    Praharsh Shah
    The document provides details of a proposed 1-acre gladiolus cultivation project, including: - Total project cost is estimated at Rs. 2,84,300 with an 85% bank loan of Rs. 2,41,700 at 14% interest over 5 years. - Techno-economic parameters like spacing, planting material, labor costs, fertilizer costs, expected sale prices of gladiolus spikes and corms are presented. - Income is estimated from the sale of 72,000 spikes in year 1, and 76,000 spikes for years 2-5. Corm sales are estimated at Rs. 3,000 in year 2, Rs. 20,

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    Gladiolus Cultivation Project Assessment: Details of 1.0 Acre Cultivation

    Uploaded by

    Praharsh Shah
    27 views2 pages
    The document provides details of a proposed 1-acre gladiolus cultivation project, including: - Total project cost is estimated at Rs. 2,84,300 with an 85% bank loan of Rs. 2,41,700 at 14% interest over 5 years. - Techno-economic parameters like spacing, planting material, labor costs, fertilizer costs, expected sale prices of gladiolus spikes and corms are presented. - Income is estimated from the sale of 72,000 spikes in year 1, and 76,000 spikes for years 2-5. Corm sales are estimated at Rs. 3,000 in year 2, Rs. 20,

    Original Description:

    Finance

    Original Title

    Gladious Cultivation

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    The document provides details of a proposed 1-acre gladiolus cultivation project, including: - Total project cost is estimated at Rs. 2,84,300 with an 85% bank loan of Rs. 2,41,700 at 14% interest over 5 years. - Techno-economic parameters like spacing, planting material, labor costs, fertilizer costs, expected sale prices of gladiolus spikes and corms are presented. - Income is estimated from the sale of 72,000 spikes in year 1, and 76,000 spikes for years 2-5. Corm sales are estimated at Rs. 3,000 in year 2, Rs. 20,

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    27 views2 pages

    Gladiolus Cultivation Project Assessment: Details of 1.0 Acre Cultivation

    Uploaded by

    Praharsh Shah
    The document provides details of a proposed 1-acre gladiolus cultivation project, including: - Total project cost is estimated at Rs. 2,84,300 with an 85% bank loan of Rs. 2,41,700 at 14% interest over 5 years. - Techno-economic parameters like spacing, planting material, labor costs, fertilizer costs, expected sale prices of gladiolus spikes and corms are presented. - Income is estimated from the sale of 72,000 spikes in year 1, and 76,000 spikes for years 2-5. Corm sales are estimated at Rs. 3,000 in year 2, Rs. 20,

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Gladiolus Cultivation Project Assessment

    Details of 1.0 acre cultivation


    Gladiolus (Gladiolus sp.) is a very popular bulbous ornamental plant. The cost of gladiolus cultivation in one
    acre works out to Rs.2, 84,300/- and in the present model, 15 % of the unit cost i.e. Rs.42, 600/acre has been
    considered as margin money. Bank loan considered in the model is 85 %. It works out to Rs.2, 41,700/acre in
    the model and lending rate has been considered as 14 % for working out the bankability of the model project.
    The repayment period is five years.

    Techno-economic parameters
    Spacing 30 cm x 15 cm
    Planting Material Corms
    Plant Population (plants/acre) 80000
    Labour (Rs./manday) 200.00
    Planting material (Rs./corm) 3.00
    Farm Yard Manure (Rs./MT) 1000.00
    Urea (Rs./kg) 12.25
    Single Super Phosphate (Rs./kg) 36.25
    Muriate of Potash(Rs./kg) 27.50
    Sale price of Gladiolus spike (Rs./spike) 3.00
    Sale price of corms (Rs./corm) 1.00

    Project Cost (Amount in Rs.)


    Sl. Item of Expenditure Year 1
    No.
    1 Land Preparation 2500
    2 Layout (Marking, Pegging, Layout etc.) 1000
    3 Planting Material 240000
    4 Planting (mandays) 3200
    5 Manures & Fertilizers 14690
    6 Plant protection operations 5000
    7 Irrigation Expenses 1500
    8 Interculture 9000
    9 Workable fence 6000
    10 Harvesting & Packing 5000
    11 Packing Material 2500
    12 Transportation 8000
    13 Misc. (incl. interest on working capital) 1600
    TOTAL 299990
    Rounded off 300000
    The number of spikes of gladiolus sold was 72000 in the first year, followed by 76000 for the
    next 5 years and the price of spike Rs.3/spike. Also the income earned from the sale of corms
    was Rs. 3000 in second year, Rs. 20000 in the third year, followed by Rs. 35000 in year 4, 5 and
    6. No corm was available for sold in the first year.

    1. Please prepare the cost stream and income stream.

    2. Assess the marketability of flower

    3. Working out NPW, BCR & financial viability by working out the IRR and also DSCR

    4. Working out also IRR based the Sensitivity Analysis @5%.

    5. Prepare a Repayment schedule

    6. What shall be done if project viability does not withstand sensitivity analysis ?

    Project Assignment is to be presented on 2 or 4 January during the 15th class.

    Soft copy of project Assignment to be submitted after presentation.

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