MINI PROJECT REPORT

On

HYDROPONICS FARMING FARM

(NO-NAR. HYDROPONIC FARMING LTD.)

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF DEGREE

OF MASTER OF BUSINESS ADMINISTRATION

From

Dr. A.P.J. ABDUL KALAM TECHNICAL UNIVERSITY

LUCKNOW

Under The Guidance Of

Dr. NIVI SRIVASTAVA

ASSISTANT PROFESSOR

ICCMRT, LUCKNOW

Submitted By

PRINCE MAURYA

SEMESTER 1

INSTITUTE OF CO-OPERATIVE AND CORPORATE MANAGEMENT

RESEARCH AND TRAINING

21/467, RING ROAD, INDRA NAGAR, LUCKNOW - 226016

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 TABLE OF CONTENTS

1. EXECUTIVE SUMMARY 3-12

2. FARM SUMMARY 13-18

3. MARKET ANALYSIS SUMMARY 19-24

4. STRATEGY AND IMPLEMENTATION

SUMMARY 25-30

5. SWOT ANALYSIS 31-37

6. FUNDING AND FINANCIALS

38-40

7. CONCLUSION 41-43

2
EXECUTIVE
SUMMARY

3
EXECUTIVE SUMMARY
No-nar. Hydroponic farming will be a project built around a highly successful
businessman and the development and training of skilled and semi-skilled staff in the
hydroponics and instant turf market. The project aim is to carry out intensive and high
turnover production, off a small area, while providing work and leadership experience
for local women.

The company is a combination of cutting edge, high quality, efficient food technology
and production. It is committed to the improvement of taste in vegetables and
excellent quality and nutritional value. The company will provide education,
experience and research in the hydroponic field. It has the experience and extensive
knowledge of well-known grower Mike Shelly as a consultant. This project will be
VNS-based, and will supply vegetables for the national and international markets, and
instant turf for the local market.

Products

The 4 main crops to be grown will be instant turf, long life tomatoes, cucumbers, and
coloured peppers.

 Tomatoes: 4ha under plastic which will produce 2100 000 kgs per year
 Cucumbers: 1ha under plastic which will produce 205 000 kgs per year
 Peppers: 1ha under plastic which will produce 250 000 kgs per year
 Turf: 30ha in the open.

Financial considerations
The company is seeking both short-term and long-term funding to finance the
purchase of a new farm and development costs of the project. This will cover startup
expenses and first year loses. It is estimated that the company will begin to make a
profit in year 2 of operations. The project is expected to begin production within 8
months from start of the first tunnel being erected.

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Hydroponics farm business plan, executive summary chart image

1.1 Objectives
The objective of this project is to establish an intensive farm, producing high-quality
produce for both the national and international market year round.

1.2 Mission
No-nar Hydroponic farming is a VNS-based company with a two-fold mission:

 To produce high quality, nutritional, and flavourful vegetables for consumption

in both local and international markets.
 To create opportunities for leadership and highly productive teamwork for local
women who work on the farm.

The women working on the farm will be organized into intensive work groups, and
each group will be paid incentives on production and performances, in addition to the
standard wages.

1.3 Keys to Success

 Efficient production utilizing greenhouses.
 No existing projects of this magnitude in the VNS region.

5
INTRODUCTION

OF
HYDROPONICS

FARMING

6
What Is Hydroponics Farming?

It is the modern technology farming in which plant growth and

productivity is controlled by water and its nutrients levels in the
water.

In other words, it is the farming without soil and growing the crops
on water. The word Hydroponics means "Water Related" and this
technology of farming has become popular and has greater
applications in modern farming practices.

Hydroponics Farming Process: -

In Hydroponics farming, water is enriched with well balanced

nutrients which are essential for plants growth and better yield.
Water level pH will be maintained within the specific range which
results in better growth and produce. In this farming, plants take the

7
nutrients from the water and using sun light, they produce the
output. As we said it's a soilless farming, one should ensure to
replace the basic functions of soil while opting for Hydroponics
farming. The following are the basic functions of the soil which have
to be provided in water based farming in the absence of soil

8
The above explains how we can replace the soil based
farming with water based farming without affecting
the plant functions.
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• Plant Root System Support: Generally, in Hydroponics system, a medium like

sand or gravel or plastics are used for supporting the plant root system .

 Supply of Nutrients
In the soil based farming system, nutrients are supplied from organic
content. where as in Hydroponics farming, fertilizers are added in the water
for providing the well balanced. nutrition to the plants.

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• Supply of Oxygen:
In soil based farming, plats use the oxygen from the soil where as in Hydroponics,
plants get the oxygen from the water. This is just like providing the oxygen for fish in
the tank.

• Supply of Water:
In soil based farming, plants get the water from the soils to establish the root system
in the soil where as in Hydroponics farming, water is directly supplied to the plants.

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Hydroponics of Modern Farming Methods
The hydroponics method is a soil-less type of farming because it requires no soil for
the plants to grow. Instead, it uses water as its growing medium. The knowledge of
soil-less gardening is called hydroponics. It essentially involves growing healthy
plants without the use of a traditional soil medium by using a nutrient like a mineral
rich water solution instead. A plant needs, choose nutrients, some water, and
sunlight to grow. Not only do plants grow without soil, they often develop a lot
better with their roots in water instead. Hydroponics farming method is a subset of
hydro culture, which is a method of growing plants without soil by using mineral
nutrient solutions in a water solvent. Terrestrial plants may be developed with only
their roots exposed to the mineral solution, or the roots may be supported by an
inert medium, such as perlite. The nutrients used in hydroponic farming systems can
come from an array of different sources; these can include, but are not limited to,
byproduct from fish waste, duck manure, or purchased chemical fertilizers.

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 FARM
SUMMARY

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How much does it cost to set up a one-acre hydroponic farm?

When you are planning to start something different, it not only needs courage,
it also demands some capital. You have the courage, that's why we will talk
about the input here today so that you can start your commercial hydroponic
farm without worry.
With the increase in the world population and growing demands on organic
food, the hydroponic market will grow to USD 16 billion by the year 2025. It is
best to start a hydroponic farm during this time.

Building a new hydroponic farm requires so many things like land, the outer
structure (polyhouse or greenhouse), growing structure, temperature
maintaining system, water pumping system, and there are other things also.

Those are the things that take up a larger part of the

capital.

Land on which the hydroponic farm set up

There are two options either you buy the land or take land on lease. You have
an advantage if you already have land of your own. The rent of one-acre
agriculture land is between Rs.10000 to Rs.15,000 per month near city.

Before finalizing the land, make sure it has access to water, electricity, and a
road for better access to the market.

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Outer Structure

The outer structure of the hydroponic farm protects the plantfrom outside
weather disturbances and provides a micro-ecosystem for the plants to grow
optimally.

Outer structures are basically of three types:

●Naturally ventilated Polyhouse (NVPH) structure that regulates internal

temperature with natural sunlight.

●Temperature controlled polyhouse (greenhouse) having a temperature

control unit (fans and cooling pads) to stabilize the internal environment.

●Nethouse which only protect crops from pests and direct sunlight.

The cost of a temperature controlled polyhouse comes roughly starting from

Rs. 1400/sq.mt, if we calculate this price for an acre, it (1 acre = 4046 sq.mt)
will be rupees 56 lacs to 60 lacs depending on the material used.
However NVPH starts with Rs. 900/sqmtr&Nethouse is 600/sqmtr.
If you are setting up a hydroponic farm in a cold climatic area, it will cut the
costs as there will be no need for a cooling system, it will only require a
blower& heaters if temp is less than zero degree Celsius.

Growing System

The kind of growing system depends on the type of plant you are planning to
grow in your hydroponic farm.
Majorly two types of plant species are grown in a hydroponic farm:

●Short plant species example lettuce, basil, etc.

●Tall plant species example tomato, cucumber, etc.

Short plant varieties can be grown on a Vertical or horizontal-bench type NFT

(Nutrient Film Technique) structure, in the area of one acre we also need
space for the waterfiltration unit, tanks, electrical equipment, etc.

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Assume that the growing system will be in the area of 3500 sq.mt (86 percent
of the total area of the hydroponic farm) you will need around 18,000 meters
of NFT channel (5.15 m/sq.mt) and the price of good quality NFT channel
made of food-grade material is between Rs. 170 to Rs. 190 per meter. If we
calculate the cost for 18,000 meters, it is Rs. 30 lakhs to Rs. 34 lakhs.

In this area, we can comfortably grow around 90,000 to 95,000 lettuce plants.

If you are planning to grow fruit or vegetable plants, you may require Dutch
bucket system or media based grow bag system. These system range from
Rs. 2800 to Rs. 3300/sqmtr depending on plant variety & type of system.

Temperature Controlling System

The temperature controlling system consists of cooling pads, fan systems,

temperature sensors, water pumps. This type of temperature controlling
system is required when the hydroponic farm is in the warm climate area.

If you are planning to set up a hydroponic farm in a cold climatic area, you
don't need to install such a system; you will only need a blower if it is too cold
outside.
The majority of the cost goes in the water pump and the cooling system. The
water pump pumps water to the cooling pads while the fans draw air from
outside and the combining effect of both cool down the temperature inside the
hydroponic farm.

The power of the water pump depends on the area of the hydroponic farm. It
will cost between Rs. 9 lakhs to Rs. 12 lakhs to install a temperature

controlling system for one acre of hydroponic farm .

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Calculating the overall cost of a commercial hydroponic farm

There are so many things that we have discussed yet, now let's add up all
those.

Outer Structure:

●Temp controlled Polyhouse cost = Rs. 56 lakhs to Rs. 60 lakhs

●NVPH cost = Rs. 36 lakhs to Rs. 38 lakhs

Growing System:

●NFT system = Rs. 30 lakhs to Rs. 34 lakhs

Temperature Controlling System:

●Cost of system = Rs. 9 lakhs to 12 lakhs
The cost can be little higher if you install the full automated system.

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Other Equipment Costs:

Equipment such a water treatment system, nutrient tanks, plumbing system,

lighting, pumps, reservoir, air pump, temperature, EC, and pH monitors all of
these will add more Rs. 5 lakhs to 8 lakhs to the total cost of the hydroponic
farm.

Final Cost

The final cost for setting up a hydroponic farm in one acre of land
will be Rs.105 lakhs to Rs. 120 lakhs, excluding the price of land.
It is an estimated cost, and it can vary according to your specific requirements
and choices. After such a price, the profitability of a hydroponic farm
outweighs it very smoothly.

18
Market
Analysis

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The market for hydroponic systems is estimated at INR
70,000 Crores in 2020; it is projected to grow at a CAGR of
11.3% to reach USD 120000 billion by 2026.
Hydroponics thus is looked upon as a potential solution for
the growing concern about food security in the coming years.
Market Insights
Growth Drivers – Hydroponics Market
Rising Popularity of Soilless Farming
There are many advantages of soilless agriculture as compared to traditional
agriculture such as less resource-intensive, less water consumption, better
quality production, minimum use of chemicals, and less space requirement.
These advantages of the hydroponic system are ideal for the current world’s
food & agriculture status. The arable land area is decreasing rapidly across
the globe due to rapid urbanization and heavy use of chemical fertilizers. This
method of hydroponics farming gaining popularity in urban, customized
agriculture setup. Other reasons such as climate change and others are also
fueling the need for a more sustainable and productive alternative to
traditional cultivation and others.

Rise of Urban Agriculture

The practice of growing plants and the raising of animals within and around
cities is on the rise these days around the world. Population rise and rapid
urbanization have increased the demand for urban agriculture recently. Apart
from this, there is an intense demand for locally grown food around the cities,
which is why many individuals, community groups, food justice advocates,
environmentalists, city planners, and gardeners are initiating agriculture within
their houses, building and cities. In addition to this, soilless farming methods
are the best suit to urban agriculture needs. Further, rising practices of
agriculture in urban areas is likely to bolster the market growth of hydroponics
in the coming years.

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Although hydroponics is one of the best answers to rising food demand and
rapidly decreasing arable areas, there are several factors which are
continuously hindering the growth of the global hydroponics market. The
requirement of massive capital and high energy costs are one of the major
barriers in global hydroponics market. Apart from above, operational
complexity and lack of skilled labor are other key barriers in the growth of
global hydroponics market.

Segmentation Analysis
The hydroponics market is segmented in different categories, including by
product, by system and by crop type. The market is segmented by product
into growing chamber, pump & tubing, growing led lights, HVAC, growing
supplies, controlling equipment, reservoir and accessories. Among this
segment, the growing chamber segment is expected to capture significant
shares of the market in 2020. Global growing chamber product segment was
totaled at USD 9.5 billion in 2020 and is projected to reach USD 17.5 billion in
2026 at a CAGR of 11.5% from 2020 to 2026. Moreover, based on the
system, the hydroponics market is further sub-segmented into aggregate
hydroponic system, closed systems, open systems, liquid hydroponics
system, nutrient film technique (NFT), others. The closed systems
hydroponics dominated the market with a leading share of 11.5% in 2020 and
is poised to continue this dominance in coming years to reach at 17.4% by
2026. Apart from above segments, the report is also fractioned into crop type
(lettuce, microgreens, medical marijuana, tomatoes, herbs, pepper,
cucumber, others) segments.

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Geographical Analysis
Regionally, the report offers an analysis of North America, Europe, Asia
Pacific, Latin America, and Middle East & Africa. When it comes to
hydroponics, Europe is the leader in market. The Europe region has acquired
significant market shares and is poised to attain significant growth rate in the
coming years. However, Asia Pacific region is poised to mask highest growth
rate over the forecast period.

Competitive Analysis
The report also covers detailed competitive analysis of major market players
of the global Hydroponics market, such as Amhydro, Hydrofarm, Lumigrow
Inc., American Hydroponics, General Hydroponics and other major & notable
players. Competitive landscape analysis provides detailed strategic analysis of
the company’s business and performance such as financial information,
revenue breakup by business segment and by geography, SWOT Analysis,
key facts, company overview, business strategy, key product offerings,
marketing and distribution strategies, new product development, recent news
(acquisition, expansion, technology development, research & development
and other market activities).

Segmentation
By Product
- Growing Chamber
- Pump & Tubing
- Growing LED Lights
- HVAC
- Growing Supplies
- Controlling Equipment
- Reservoir
- Accessories

By System:
- Aggregate Hydroponic System
- Closed Systems
- Open Systems
- Liquid Hydroponics System

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 - Nutrient Film Technique (NFT)
- Others

By Crop
- Lettuce
- Microgreens
- Medical Marijuana
- Tomatoes
- Herbs
- Pepper
- Cucumber
- Others

By Geography
- North America (U.S. & Canada)
- Europe (Germany, United Kingdom, France, Italy, Spain, Russia and Rest of
Europe)
- Asia Pacific (China, India, Japan, South Korea, Indonesia, Taiwan, Australia,
New Zealand and Rest of Asia Pacific)
- Latin America (Brazil, Mexico, Argentina and Rest of Latin America)
- Middle East & Africa (GCC, North Africa, South Africa and Rest of Middle
East & Africa)

Competitive Landscape
The report profiles various major market players such as:
 Amhydro
 Hydrofarm
 Lumigrow Inc.

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 American Hydroponics
 General Hydroponics
 Other Major & Niche Players
The study also provides a company’s positioning and market share in
hydroponics market.

Timeline Considered for Analysis:

- 2021: Base Year
- 2022: Estimated Year
- 2021 to 2026: Forecast Period

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Strategy
And
Implementation
Summary

25
Competitive Edge
The Industry is still small, and therefore a project of this magnitude will create
interest among all the major veg outlet markets.

NO-NAR. HYDROPONIC FARMING LTD. aims to be the biggest growers of

hydroponics in the Varanasi region. At present there are very few big
growers, minimizing the competition. The advantage of hydroponics on a large
scale is the availability to produce vegetables all year round in large
quantities. This immediately becomes a positive factor with major retail outlets
and exporters.

The key strategies adopted by prominent players in the Indian hydroponics

market are establishing new commercial plants in tier 1 in collaboration
between regional producers and global technology providers to meet the
growing demand for exotic and organic foods.

The major players include DS Group, LetectraAgritech Pvt Ltd, Sparsh Bio
Life, Neoterra Farming Technologies Pvt Ltd, Delhiponics, Hydroherbs, Simply
Fresh Inc, JungaFreshngreen Pvt Ltd, Triton Food Works Pvt Ltd., and
Fresco.

Over the next few years, the market might experience huge competition
through major food chains across the globe establishing their hydroponics
farms in India.

In June 2017, The Triton Food Works Pvt Ltd established five farms in
Karnataka, Maharashtra, and Delhi grabbing INR 1 Crore's revenue in 2017.

In February 2017, Infra Co Asia Development Pte Ltd. entered into a strategic
agreement with JungaFreshgreen Pvt ltd to develop 9.3 hectares hydroponic-
based agricultural facility in Junga, North India.

Marketing Strategy
Growing demand for sustainable and protected farming practices and higher
yield of crops grown under hydroponic facilities over traditional farming are the
driving factors for its growth. According to the study published by
V.Chandrshekaran, a founder of a hydroponics technology company, the
average yield of lettuce per acre yearly was recorded between 9-10 tons in
soil-based agriculture and 300-400 tons in hydroponics agriculture. Increased
hydroponics' investment rate over the traditional soil-based agricultural
process through increased yield and minimal water cultivation might further

26
boost the agricultural communities towards adopting the hydroponics
technologies during the forecast period.

Sales Strategy
Growing demand for sustainable and protected farming practices and higher
yield of crops grown under hydroponic facilities over traditional farming are the
driving factors for its growth. According to the study published by
V.Chandrshekaran, a founder of a hydroponics technology company, the
average yield of lettuce per acre yearly was recorded between 9-10 tons in
soil-based agriculture and 300-400 tons in hydroponics agriculture. Increased
hydroponics' investment rate over the traditional soil-based agricultural
process through increased yield and minimal water cultivation might further
boost the agricultural communities towards adopting the hydroponics
technologies during the forecast period.

Soil Agriculture Avg per

Vegetable Type Acre Hydroponics Agriculture Avg per acre

Lettuce 9-10 tons 300-400 tons

Strawberries 20-25 tons 50 tons

Cucumber 15-20 tons 200 tons

Tomato 10-12 tons 180-200 tons

Bell Pepper 10-12 tons 120-140 tons

Potato 8-10 tons 60-70 tons

Cabbage 6-7 tons 10-12 tons

However, Lack of awareness among the farming communities regarding

hydroponics and High initial investment and maintenance cost associated with
hydroponics are the key restraints hampering the market growth globally. The
major farming communities located across the country have minimum
knowledge of hydroponics, and they are majorly into competitive farming. The
lack of word of mouth regarding hydroponics technologies from one farming
communities to another led to a low understanding of farmers worldwide'
technology

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Sales Forecast

Market Overview

The Global Hydroponics Market is projected to register a CAGR of 8.48% over the
forecast period (2020-2025). In 2019, North America is the largest geographic
segment of the market studied and accounted for a share of around 35% of the
overall market.

 Hydroponics is an environment-friendly and profitable technology. It has

been promoted by the various governments and non-governmental
organizations for its benefits in terms of food security.The need for food
supply against the explosive population increase by 2050 has catalyzed the
growth of the hydroponics market.
 High-cost is the only major drawback the hydroponics market. However, a lot
of R&D activity is being carried out globally to reduce the cost involved in
technology. The major industry drivers include high profits, growing
emphasis on food security, and increasing consumption of salad and exotic
vegetables.
 Considering the force and isolation of COVID 19, strengthening food
production and distribution systems has become a key concern for the future.
As per FAO studies the development of alternate growing systems such as
hydroponics is anticipated to play an important role in the global food
security, by supplying with safe and nutritious food. In addition this can also
help in tackling the logistical uncertainities in the market. Thus the need for
hydroponics is anticipated to grow in the future.

Higher Consumption of Salads and Vegetables

The demand for exotic fruits and vegetables has been constantly growing at a higher
rate due to the increased purchasing power of consumers. The cost of these exotic
products is high, as most of these products are imported, and thus, several research
institutions and universities are focusing on establishing more simplified
hydroponics systems, in order to accelerate the production of exotic fruits and
vegetables and meet the escalating demand. Increasing awareness among the

28
consumers of eating fresh vegetables will also fuel the market in future. Demand for
Exotic vegetables like red and yellow capsicum, red lettuce in retail company like
Burger king,KFC,Pizza is anticipated to boost the sales during the forecast period .

North America Dominates The Global Market

The demand for fresh vegetables and fruits in the region is driving the market
demand for hydroponic operations. At present, the hydroponics farms preset in the
region are family or small business operations which covers 1/8 – 1 acre. Roof top
hydroponic gardens in urban setups like New York is helping the market grow
further. The future growth of the hydroponics market in the region depends greatly
on the development of hydroponic production systems that are competitive in cost
with systems of open field agriculture. Hydroponic production has gained popularity
among commercial vegetable producers since it is not a labor-intensive method to
manage larger areas of production, and an efficient method to control inputs and
manage facilitates for disease and pests. As the hydroponics eliminate the need for
soil fumigants and can increase yields of popular vegetables, farmers in the region
are anticipated to adopt hydroponics as a popular cultivation method. Increasing
adoption of hydroponics as cultivation method is anticipated to drive the market
growth.

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Milestones
Hydroponic farming has made it much easier to farm greens
like lettuce, spinach, Swiss chard, and kale, herbs like basil, parsley,
oregano, cilantro, and tomatoes. These are organic and natural, don't need
soil and grow fast. They are not prone to diseases much, are affordable and
yield very well.

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 Swot
Analysis

31
 Swot/ Matrix analysis
SWOT analysis is a vital strategic planning tool that can be used by The
Hydroponics Company Limited managers to do a situational analysis of the
firm . It is a handy technique to evalauate the present Strengths (S),
Weakness (W), Opportunities (O) & Threats (T) The Hydroponics Company
Limited is facing in its current business environment.

The The Hydroponics Company Limited is one of the leading organizatations

in its industry. The Hydroponics Company Limited maintains its dominant
position in market by carefully analyzing and reviewing the SWOT analysis.
SWOT analysis an immensenly interactive process and requires effective
coordination among various departments within the organization such as –
marketing, finance, operations, management information systems and
strategic planning.

The SWOT Analysis framework helps an organization to identify the internal

strategic factors such as -strengths and weaknesses, & external strategic
factors such as - opportunities and threats. It leads to a 2X2 matrix – also
called SWOT Matrix

The Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis /

Matrix enables the managers of the The Hydroponics Company Limited to
develop four types of strategies:

 SO (strengths-opportunities) Strategies
 WO (weaknesses-opportunities) Strategies
 ST (strengths-threats) Strategies
 WT (weaknesses-threats) Strategies

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SWOT Matrix Strategies Objective

The main purpose of SWOT matrix is to identify the strategies

that a company can use to exploit external opportunities,
counter threats, and build on & protect The Hydroponics
Company Limited strengths, and eradicate its weaknesses.

Step by Step Guide to The Hydroponics Company Limited

SWOT Analysis
Strengths of The Hydroponics Company Limited – Internal
Strategic Factors
As one of the leading companies in its industry, The Hydroponics Company
Limited has numerous strengths that help it to thrive in the market place.
These strengths not only help it to protect the market share in existing markets
but also help in penetrating new markets. Based on Fern Fort University
extensive research – some of the strengths of The Hydroponics Company
Limited are –

33
 High level of customer satisfaction – the company with its dedicated customer
relationship management department has able to achieve a high level of
customer satisfaction among present customers and good brand equity
among the potential customers.
 Highly skilled workforce through successful training and learning programs.
The Hydroponics Company Limited is investing huge resources in training and
development of its employees resulting in a workforce that is not only highly
skilled but also motivated to achieve more.
 Strong Brand Portfolio – Over the years The Hydroponics Company Limited
has invested in building a strong brand portfolio. The SWOT analysis of The
Hydroponics Company Limited just underlines this fact. This brand portfolio
can be extremely useful if the organization wants to expand into new product
categories.
 Good Returns on Capital Expenditure – The Hydroponics Company Limited is
relatively successful at execution of new projects and generated good returns
on capital expenditure by building new revenue streams.
 Strong Free Cash Flow – The Hydroponics Company Limited has strong free
cash flows that provide resources in the hand of the company to expand into
new projects.
 Strong distribution network – Over the years The Hydroponics Company
Limited has built a reliable distribution network that can reach majority of its
potential market.
 Reliable suppliers – It has a strong base of reliable supplier of raw material
thus enabling the company to overcome any supply chain bottlenecks.
 Successful track record of developing new products – product innovation.
Weakness of The Hydroponics Company Limited – Internal
Strategic Factors

Weakness are the areas where The Hydroponics Company Limited can
improve upon. Strategy is about making choices and weakness are the areas
where a company can improve using SWOT analysis and build on its
competitive advantage and strategic positioning.

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 Limited success outside core business – Even though The Hydroponics
Company Limited is one of the leading organizations in its industry it has
faced challenges in moving to other product segments with its present culture.
 High attrition rate in work force – compare to other organizations in the
industry The Hydroponics Company Limited has a higher attrition rate and
have to spend a lot more compare to its competitors on training and
development of its employees.
 Need more investment in new technologies. Given the scale of expansion and
different geographies the company is planning to expand into, The
Hydroponics Company Limited needs to put more money in technology to
integrate the processes across the board. Right now the investment in
technologies is not at par with the vision of the company.
 There are gaps in the product range sold by the company. This
lack of choice can give a new competitor a foothold in the
market.
 Financial planning is not done properly and efficiently. The
current asset ratio and liquid asset ratios suggest that the
company can use the cash more efficiently than what it is doing
at present.
 The profitability ratio and Net Contribution % of The
Hydroponics Company Limited are below the industry average.
 The marketing of the products left a lot to be desired. Even
though the product is a success in terms of sale but its
positioning and unique selling proposition is not clearly defined
which can lead to the attacks in this segment from the
competitors.

Opportunities for The Hydroponics Company Limited – External

Strategic Factors

 Stable free cash flow provides opportunities to invest in

adjacent product segments. With more cash in bank the
company can invest in new technologies as well as in new
products segments. This should open a window of opportunity
for The Hydroponics Company Limited in other product categories.

35
 The new taxation policy can significantly impact the way of doing business
and can open new opportunity for established players such as The
Hydroponics Company Limited to increase its profitability.
 Lower inflation rate – The low inflation rate bring more stability in the market,
enable credit at lower interest rate to the customers of The Hydroponics
Company Limited.
 Organization’s core competencies can be a success in similar other products
field. A comparative example could be - GE healthcare research helped it in
developing better Oil drilling machines.
 Opening up of new markets because of government agreement – the adoption
of new technology standard and government free trade agreement has
provided The Hydroponics Company Limited an opportunity to enter a new
emerging market.
 Economic uptick and increase in customer spending, after years of recession
and slow growth rate in the industry, is an opportunity for The Hydroponics
Company Limited to capture new customers and increase its market share.
 The new technology provides an opportunity to The Hydroponics Company
Limited to practices differentiated pricing strategy in the new market. It will
enable the firm to maintain its loyal customers with great service and lure new
customers through other value oriented propositions.
 New environmental policies – The new opportunities will create a level playing
field for all the players in the industry. It represent a great opportunity for The
Hydroponics Company Limited to drive home its advantage in new technology
and gain market share in the new product category.

Threats The Hydroponics Company Limited Facing - External

Strategic Factors
 No regular supply of innovative products – Over the years the company has
developed numerous products but those are often response to the
development by other players. Secondly the supply of new products is not
regular thus leading to high and low swings in the sales number over period of
time.
 Increasing trend toward isolationism in the American economy can lead to
similar reaction from other government thus negatively impacting the
international sales.
 Liability laws in different countries are different and The Hydroponics
Company Limited may be exposed to various liability claims given change in
policies in those markets.
 Intense competition – Stable profitability has increased the number of players
in the industry over last two years which has put downward pressure on not
only profitability but also on overall sales.

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 Rising raw material can pose a threat to the The Hydroponics Company
Limited profitability.
 As the company is operating in numerous countries it is exposed to currency
fluctuations especially given the volatile political climate in number of markets
across the world.
 New environment regulations under Paris agreement (2016) could be a threat
to certain existing product categories .
 Imitation of the counterfeit and low quality product is also a threat to The
Hydroponics Company Limited’s product especially in the emerging markets
and low income markets.

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 Funding
And
Financials

38
Funding & financing analysis summery
How to Fund Your Start-up Business
Starting a business? You have a great idea, you have the will and you know
you will. Ever thought of the capital or funding required fulfilling your dream?
Launching any business requires capital investment, whether the start-up is
any type of MSME or large enterprise. Funding makes your business to initiate
with a strong base and helps to expand and grow further. Finding funds for a
start-up business can be sometimes challenging and tiresome task. However,
to make it simple for you, we have compiled a few important financing
techniques that shall help you in finding finance.

1. Self-Financing your Start-up

Self-financing or personal investment is the best way of financing used by
several business start-ups. Even when you take loan or ask a venture
capitalist or government entity to provide funding for your start-up, they still
have this question; how much capital you shall be investing in your start-up?
Investing your own savings is the best option for the first time entrepreneurs.
In the later stages of business, you can easily opt for business loans and
lender shall not have a reason to deny it, as they will consider the stability of
business, as it will be low risk factor for them.

2. Getting an Angel Investor

Individuals with surplus cash are known to be Angel investors and these
individuals are interested in investing in new start-ups in India, as well as
worldwide. The risk involved in these investments by Angel investors is more,
as compared to loans offered by financial institutions, as Angel investors plan
to invest for higher returns to profit. India’s popular Angel investors include
Mumbai Angels, Indian Angel Network and Hyderabad Angels. Start-up
owners can directly get in touch with these investors for funding support.

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3. Crowdfunding Support
Crowdfunding is a concept of collecting funds from multiple investors via
social networking sites and web-based platform for majorly business
purposes. Online Crowdfunding web portals raise funds for various other
purposes like social causes, charities, ideas, disaster relief, events, etc. This
concept or idea helps in raising funds for start-ups or first time business
owners and also promotes social and cultural causes. India’s leading
Crowdfunding platforms includes Kickstarter, Ketto, Catapooolt, FuelADream,
Fundable, Indiegogo, Milaap, Wishberry, etc.

4. Loans under Government Schemes

Government of India has launched various loan schemes that aims to benefits
Start-up enterprises, SMEs, MSMEs, as well as promotes the socio-economic
growth of rural India, women entrepreneurs, educated youth, individuals from
SC/ST category, Small Scale Industries (SSIs), villages, people living in rural
and urban areas, etc. Loan schemes initiated by Government of India to help
Start-up enterprise include MUDRA loan scheme under PradhanMantri Mudra
Yojana (PMMY), Start-up India, Credit Guarantee Fund Trust for Micro and
Small Enterprises (CGTMSE), Stand-up India, Atal Innovation Mission, Make
in India, Trade related entrepreneurship Assistance and Development
(TREAD), etc.

40
CONCLUSION

41
Hydroponics is the effective technology for the places of the world having
scarcity of infertile and arable land for cultivation of crops. Fresh products can
also be harvested through hydroponics throughout the year as it is not like
traditional cultivation practices.

Growing plants in a nutrient solution offers a number of advantages such as

Applying plant nutrients in fertilizers directly to the roots without the problems
associated with the soil’s composition or the fertilizer’s inability to infiltrate into
the root system; No need for heavy machinery to prepare beds for seeds or
planting; Weeds and diseases can be controlled without spraying chemicals
and no irrigation systems have to be installed for fertigation; Erosion of the soil
by repeated cultivation is avoided.

Due to the use of a constant feeding of nutrients and water, the hydroponic
plants have grown much taller and produced more leaves quicker than the
plants growing in normal soil. ... The experiment conducted with this project
also concluded that the use of a hydroponic system would result in larger and
tastier produce

SETUP CAST

The final cost for setting up a hydroponic farm in one acre of land will be Rs.105
lakhs to Rs. 120 lakhs

 Product will produce in Hydroponics farming

- Lettuce
- Microgreens
- Medical Marijuana
- Tomatoes
- Herbs
- Pepper
- Cucumber
- Others

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 Market for Hydroponics product
Varanasi Region
- Varanasi
- Jaunpur
- Mirzapur
- Chandauli
- Gazipur

 Five Year Forecast Plan (Sales, Gross Margin and Net Profit)

1,80,00,000

1,60,00,000
SALES
1,40,00,000
GROSS MARNIG
1,20,00,000
NET PROFIT
1,00,00,000

80,00,000

60,00,000

40,00,000

20,00,000

0
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

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