PROJECT REPORT FOR ESTABLISHMENT OF

PLANT NURSERY AND MANURE

PRODUCTION SITE

Submitted by

KISHAN N KOJU

# 17, 4TH A Main road Prashanth

layout,Near SBI bank, Prashanth
layout Banglaore-560057
Mobile: +91 9957265393
 PROPOSAL FOR ESTABLISHING PLANT NURSERY AND MANURE
PRODUCTION SITE

INTRODUCTION

Plant Nursery is the unity of whole plant species it includes Ornamental

plants, Tree species, Medicinal and Herbal plants, Flower plant and all
types of Fruits plants. It is very much essential to have the proper
Manure for the plants to maintain healthy and natural way.
The advances in the science and technology have resulted in this most
efficient tool available to mankind in the Agricultural field not only in
multiplying the desired types on a large scale in a short period but also
to improve and breed new types in the economically important species of
kingdom.
We are into the Nursery and Landscaping business from past 15 years,

PROCESS
We receive the primary hardened plants form our own tissue culture unit
AVANEESH PFLANZEN Situated in Bangalore Rural, Doddaballapura,
20 different types of ornamental plants they produce in mass quantity, in
the secondary hardening site we transfer the net potted plants in to the
bigger size pots as per the market and customer demand, once after that
we will be maintain the proper manure and pesticide till the plants are
ready to dispatch, in the same time we will have the nursery setup for
the walk in customers for the local sales, The process consists of mass
propagation by continuous production of a large number of plants under
controlled conditions of light intensity, photoperiod (light and dark),
temperature and humidity on defined nutrient medium. After plant lets
to desired numbers, Finally fully grown plantlets are acclimatized to grow
in natural condition by hardening them in poly house and green house.
 PROMOTERS

The Promoter of the project is KISHAN N KOJU, BE, MBA [Operations

Management]
Address: # 17, 4TH A Main road Prashanth layout, Near SBI bank, Prashanth
layout Banglaore-560057

The promoters are into the landscaping and nursery business for the
past 15 years. We have a dedicated team of engineers, horticulturist and
supervisors for hard scape work and soft scape work, we have very
experienced Horticulturists who can deliver very good Quality of work, we
handpick plants and trees that are aesthetically appealing and improve
the immediate environment.

We recommend the use of natural fertilizer and nutrition for the plants.
We grow all the type of good and healthy plants and tree variety.

The proposed project is to set up and collaborated with Hi – Tech Tissue

Culture Lab with a capacity of 40,00,000 plants per year.(4 million).
Under this project, it is proposed to set up a state of the art Nursery
Hardening center with a capacity of 4000000 Plants per year comprising
of different varieties. All these types of products have got a ready market.
However, initially it is proposed to have the Sales mix of varieties plants.
As explained earlier, there are plenty of consumers and farmers who
shall be the major customers for this product already we have in
database.

MARKETING STRATEGY
The promoters are technical sound in the field of marketing landscaping
plants for the past 15 years, also have developed a wide network of
landscapers and Nursery plant growers across the states of Karnataka
Andhra Pradesh, Tamilnadu, Kerala and Puna. Wide publicity will be
given through fairs such as Krishi mela, Agro India, Food fairs etc across
these those states. Pamphlets broachers for huge publicity.
Having Tie up with various nurseries across Karnataka, tamilnadu
Kerala, Andhra Pradesh and Puna. The business area is mainly
concentrated in the Whole sell nurseries across those state.

Method of Marketing
Secondary hardened (poly bag) or potted plants are sold to Customers
and nursery retailers with a prior order or an indent. Usually the
customers place an order one month advance by paying 50% of the cost.
They will be shown the quality of plants delivered to them and later
plants will be delivered to the customers from the allotted lot by
collecting the balance amount before the delivery. Even most of the
customers procure the plants from the nursery with own transport
arrangements.
The sales will be considerably more during the peak seasons and services
to Landscaping design and Plans

Thus with the help of the past experience, adequate capital and the
market potentiality the promoter is confident about the success of this
project.

LOCATION OF THE PROJECT

The name of the project is SIDHIVINAYAKA LANDSCAPING The project
is located at Survey no 19/2, Shatapura village, Haveri hobli, Ramanagara tq,
Ramangara-Dist PIN 538199. Total area allotted for the project is 4 acres.
All infrastructural facilities such as road, water, transport,
communication etc are easily available.
CONSTITUTION
Proprietorship
THE PROJECT
The present report is a business plan for setting up of the center and it
involves investment in long term assets and working capital
requirements for the types of services to be provided.

EMPLOYMENT OPPORTUNITY
Beside direct employment of more than 45 skilled & unskilled employs at
the Farm will give indirect employment to more than 200 dealers and sub
dealers in the market chain. However, the company has already
appointed

Mr. Nalini N R, B.E, MBA,(Operations management) as production advisor.

 JOB PROFILES OF THE PROPOSED MANPOWER

1. General Manager: General Manager will be looking after all the

activities coming under this project. He will at the management level
taking care of Production planning, Drawing marketing strategies,
Liaisoning between various agencies, Planning Business strategies,
etc.
2. Unit In charge: He is responsible for carrying out day to day activities
of the plant, maintaining MIS reports, reporting to the management of
the Production process. Will be responsible for preparation,
monitoring the production activities, Training the people and overall
monitoring greenhouse work. Qualification – M.Sc. or B.Sc Agri
background or with min 5 years of experience in handling the unit
independently.
3. Labor for Green house: Daily wages basis can be taken. Male and
female are required for spraying, watering, soil work, and loading of
plants.
The project will benefit more than 750 farmers covering 250 villages. The
company is having vision to cover all the North and South India State.

PROJECT INVESTMENTS
The proposed investments pattern are explained in annexure. The total
capital requirement consists of fixed capital. The fixed cost involves
buildings, plant and machineries, furniture, Electrification etc. As shown
in annexure total requirement of capital investment is Rs.362 lakhs. Out
of this Rs.175 lakhs will be brought in from bank as term loan and rest
Rs.210 lakhs will be invested by the promoter as margin.
Working Capital requirement:
For day today work the project need some fund. This investment include
for raw materials like mother stock, chemicals soil, compost, coco peat
etc, daily consumables like LPG gas, sterilizers etc, for man power
requirement. Secondarily for hardening, packing, selling and repairs and
maintain the plants. The requirement and cost involved is given in
annexure. The requirement of working capital will be for first 3 months
and cost will be Rs.193 lakhs.

FINANCIAL ANALYSIS:

The costs of production and profitability estimates have been made on a

realistic but conservative basis. The assumptions underlying the
preparation of statements are outlined in the succeeding paragraphs.

1. Project Cost: The detail of project cost is as given Annexure -1. The
implementation period of the project is about 3 months.

2. Sales Revenue: It is proposed for cultivation of varieties of plants in different

quantity. The estimated number of plants that can be about 3,40,000 per month.
i.e.40,00,000 per annum. Mortality of 10%. The selling price per plant is taken @
Rs.35/-

Economics

1. Returns

The gross return from project as stat ed above is estimated at Rs. 600
lakhs in the first year

Expense s

A detailed working of recurri ng exp endi tur e for the acti vity given under
annex ure to the stat ement of e xp en se s . The annual recurri ng expenses
for all the oper ation s are e sti mate d to be in the range of Rs. 800 lakhs to
850 l akhs.
 FIXED ASSETS AND INFRASTRUCTURE COSTING : PART A
PARTICULARS Scale Quantity Rate (Rs.) Total Cost
1.0 Land Development and Infrastructures
1.1 Land Development Per Acre 3.5 100000 350000
Sub Total 350000
2.0 Building and Other Cevil Construction
2.1 Office and Gowdown for stock Per Sqft 1800 1500 2700000
2.2 Labour Quarters Per Sqft 1500 1200 1800000
2.3 Cattle shed, Manure processing
Per Sqft 6000 600 3600000
Shed and Machinerry
Sub Total 8100000
3.0 Controlled condition structure For Hardening
3.1 Primary Poly House FAN and
Per Sq.mtr. 4000 1200 4800000
PAD
3.2 Net House Per Sq.mtr. 4000 500 2000000
Sub Total 6800000
4.0 Machineries And Equipments
4.1 Generator and BESCOM Lum Sum Lum sum 850000
4.2 Computer, CCTV, Sprayer
Lum Sum Lum sum 600000
Machine etc.
Sub Total 1630000
Grand Total 16880000

Working Capital and Operative Expenses For 3 Months : PART B

Particulars Scale Quantity Rate (Rs) Total
1.0 Man Power Salaries and wages
1.1 Salaries for workers Nil 35 15000x3 Month 1575000
1.2 Daily Wage workers Nil 10 350x10x3Month 273000
2.0 Purchasing the Raw Material and plant saplings
2.1 plant saplings, Pot, Cover No,s 325000x3month 13 Rs 12675000
2.2 Chemical, Coco Pith,
No,s 325000x3month 4-50 Rs 4387500
Vermicompost
2.3 Power Bill, Fuel, Transportation
Lumsum For 3 Months 0-50 Ps 487500
etc

Grand Total 19398000

Grand Total PART A + B 36278000
pREPAYMENT PLAN
The term loan will be repaid in a period of 5 years
2. Projected profitability statement

Revenue Generation Report

Particulars Scale Quantity Rate (Rs) Total
1.0 Plants are estimated to sell per Anum is 4000000
1.1 Total Expense for
qty 4000000 19-90 Rs 79600000
each plant
1.2Wholesell Prise for
qty 4000000 35 Rs 140000000
each plant
1.3 Margin on each
qty 4000000 12-60 Rs 50400000
Plant
1.4 Bank Loan, Vehicle expenditure and other expenses LS 10000000

SUMMERY OF FINANCIALS AS FOLLOWS:

Sl. No Parameters
1 Total project cost Rs. 362 Lakhs
2 Bank Term Loan Rs. 150 Lakhs
3 Promoter’s Margin Rs. 212 Lakhs
4 Average recurring cost Rs. 193.00Lakhs
7 Repayment period 7 years

3. SUBMISSION

The business plan is submitted herewith for appraisal and

sanctions of term loan of Rs. 150 lakhs as proposed above.