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SYMBIOSIS INSTITUTE OF INTERNATIONAL BUSINESS (SIIB)constituent of SYMBIOSIS INTERNATIONAL (DEEMED UNIVERSITY)
(Estd. Under section 3 of the UGC act 1956, notification no. F-9-12/2001(A)-U-3 of the Govt. of India)Accredited by NAAC with ‘A’ Grade
REPORT
Course Name: Project Planning Appraisal And Controle Code No:- 020242210
Project name: Project repot on Fresh Papaya Fruit Production
Programme: MBA-AB Batch: 2009-11 [Fresh]
Season: March 2010.
Semester- II
Seat No.
Name of the Student: Sachin Lakade
PRN: 09020242032
Submitted to Prof. Chitragar
Submission date: [to be written by receiver at the time of submission only]
Fresh Papaya Fruit Production Project:-
S&S. Papaya Grower
Sachin LakadeAt Khairgaon( kasar)Post WardhTq Ralegaon Dist Yavatmal
FORMAT-I1) Date of application 2) Control No. :
(to be given by NHB)
PHOTO
To,The Centre In-Charge
National Horticulture Board......................................................................................................................
ToThe Managing DirectorNational Horticulture BoardPlot No. 85, Sector-18, Institutional Area, Gurgaon-122015 (Haryana)(projects above Rs. 20.00 Lakh may be sent to this address and a copy of the same to concerned State Office too)
Application for Letter of Intent (LOI) under the scheme “Development of Commercial Horticulture through production and post Harvest Management” of National Horticulture Board)
A. GROWER/ENTREPRENEUR1. Name : Sachin Lakade
Permanent Address :_At Khairgaon (kasar),Post: Wardh Tq:-Ralegaon Dist:-YavatmalPostal Address : At Khairgaon (kasar),Post: Wardh Tq:-Ralegaon Dist:-Yavatmal
2. Category : SC 3. Gender : Male Age _28______4. Occupation : Business Man5. Promoters/beneficiary profile
i) Principal Promoter/Beneficiaryii) Othersiii) In case of companies -
Registration number & date of registration Registering authority Act under which Registered Authorized share capital _________ Paid-up share capital _________ Reserves & surplus _______
(by end of last financial year)
B. PROPOSED ACTIVITY(Cultivation/PHM/Primary Processing/Horticulture ancillary)1. Name of the Project Papaya2. Location:
Survey/Khasra No.__123/6 Village :-Khairgaon , Taluka:-Ralegaon District : Yavatmal State:- Maharashtra
3. Activity proposed under the project in details:-(a) Area under cultivation/project 100 acresName of the Crops Variety (s) Area ( acres ) No. of plants Source of Planting
Material
i) Papaya..... .Tivan . 100acres 150000 Nursery
ii) ............. ..................... ................... ……………. …………….
b) PHM Activity
- Grading & packing/Pre-cooling/Refer Van:- Yes
c) Primary processing
- Activity in brief with details of products:- Nil
d) Horticulture ancillary industry
e.g. tools, equipments, plastics, packaging etc.
- Activity in brief :-
e) Misc. activities (Not covered in a to d) Nil
- Activity in brief :-
f) Refer Van/Specialized Transport Vehicle Yes
B.II (a) Whether proposed activity in application is Yes
(if No, the details of pre-existing activity
or any component thereof included in the
application should be indicated clearly)
... ..................................................................................
.....................................................................................
(b) Whether any subsidy has been availed No
for the proposed proposal/activity from
Central Govt. or any of its Agencies.
(if YES, please indicate clearly in detail
.....................................................................................
.....................................................................................
C. PROPOSED PROJECT COST (Component-wise)
Component/Item 5,06,000,00
(a) Cultivation 5,06,000,00
1) Cost of Cultivation
(i) Cost of planting material 22,50,000
(ii)Cost of fertilizer & manure 2000000
(iii) Source of planting material & proposed variety(ies)
(iii)Cost of insecticides & pesticides 500000
(iv) Cost of labour 416000
(v) Other expenditure, if any (pl. specify) ..........................
2) Irrigation
(i) Bore-well/Tube-well (new/old) 200000
(iii)Cost of pipeline (length, diameter & 1450000 type of material used)
(iv) Water harvesting pond ..........................
(existing/new & size)
(v) Other expenditure, if any (pl. specify)
Feritgation(filter etc) 800000
3) Micro Irrigation, use of plastic mulching etc.
(i) Cost of drip irrigation 900000
(ii) Cost of sprinkler
(iii) Cost of plastic mulching
(iv) Other expenditure, if any (pl. specify)
4) Infrastructure
(i) Pump House 60000
(ii) Store 500000
(iii)Labour quarter 300000
(iv) Generator room(+generator)
800000
(v) Other expenditure, if any (pl. specify) ..........................
5) Cost of Tractor & accessories 728000
[If area under cultivation (project) is above 05 acres]
6) Land development (including digging of pit & fencing) 300000
7) Cost of Land, if purchased 400000008) Creation of controlled atmosphere Area (sq. mtrs) Cost
a) Green house/poly house (size) .
b) Shade net (size)
Total ..........................
(b) Post Harvest Infrastructure
1. Cost of grading/packing house ..........................
2. Cost of grading/packing line .........................
3. Cost of pre-cooling unit (capacity) .........................
4. Cost of refrigerated van (capacity) ........................ 5. Zero Energy Cool Chamber ……………………...
6. Other components, if any (pl. specify) .........................
Total ….....................
(c) Primary Processing
1. Cost of civil constructions
2. Cost of plant & machinery ..........................
3. Other components, if any (pl. specify) ..........................
Total ............................
4. Name the product of primary processing …………………
D. PROPOSED MEANS OF FINANCE
(i) Promoter’s share 12650000
(ii) Bank/FI term loan 28479000
(iii)Proposed subsidy from other sources, if any 9493000
a) Form State Govt.
b) From Central Govt. other than NHB
Total 50600000
.(Note: Unsecured loans from friends/relatives will not be treated as equity)
Expected back-ended subsidy from NHB: Rs. …………………(NHB subsidy will be considered as per Board’s guidelines, if found in order, but not
guaranteed)
PART-II
PROJECT DETAILS
A) About the Project:-
Entrepreneur is going to develop land under cultivation of Papaya in Yavatmal district.The development
of land will be on scientific basis as per the standered method of cultivation
Agro-climatic requirements
Papaya being a tropical fruit grows well in the mild sub-tropical regions of the country upto 1,000
m. above sea level. Night temperature below 120-140 C for several hours during winter season
affects its growth and production severely. It is very much sensitive to frost, strong winds and
water stagnation.
Deep, well drained sandy loam soil is ideal for cultivation of papaya.
Land Preparation
A well-drained upland is selected for cultivation. In open and high lying areas plants are
exposed to strong winds or storm. Therefore, for proper establishment of papaya plantation,
suitable wind break should be planted at the orchard boundary.
Planting
Planting Material
Papaya is commercially propagated by seed and tissue culture plants. The seed rate is 250-
300 g./ha. The seedlings can be raised in nursery beds 3m. long, 1m. wide and 10 cm. high as
well as in pots or polythene bags. The seeds after being treated with 0.1% Monosan (phenyl
mercuric acetate), ceresan etc. are sown 1 cm. deep in rows 10 cm. apart and covered with
fine compost or leaf mould. Light irrigation is provided during the morning hours. The nursery
beds are covered with polythene sheets or dry paddy straw to protect the seedlings. About 15-
20 cm. tall seedlings are chosen for planting in about two months.
Planting season
Papaya is planted during spring (February-March), monsoon (June-July) and autumn (October-
November).
Spacing
A spacing of 1.8 x 1.8 m. is normally followed. However higher density cultivation with spacing
of 1.5 x 1.5 m./ha enhances the returns to the farmer and is recommended.
High Density Planting : A closer spacing of 1.2 x 1.2 m. for cv. Pusha Nanha is adopted for
high density planting, accommodating 6,400 plants/ha.
Planting Method
The seedlings are planted in pits of 60x60x60 cm. size. In the summer months the pits are dug
about a fortnight before planting. The pits are filled with top soil along with 20 kg. of farmyard
manure., 1 kg. neem cake and 1 kg. bone meal. Tall and vigorous varieties are planted at
greater spacing while medium and dwarf ones at closer spacing.
Nutrition
Papaya plant needs heavy doses of manures and fertilizers. Apart from the basal dose of
manures (@ 10 kg./plant) applied in the pits, 200-250 g. each of N, P2O5 and K2O are
recommended for getting high yield. Application of 200 g. N is optimum for fruit yield but papain
yield increases with increase in N upto 300 g.
Micronutrients
Micro-nutrients viz. ZnSO4 (0.5%) and H2 BO3 (0.1%) are sprayed in order to increase growth
and yield characters.
Irrigation
The irrigation schedule is fixed on the basis of soil type and weather conditions of the region.
Protective irrigation is provided in the first year of planting. During the second year, irrigation is
provided at fortnightly interval in winter and at an interval of 10 days in summer. Basin system of
irrigation is mostly followed. In areas having low rainfall, sprinkler or drip system can be
adopted.
Intercultural Operations
Deep hoeing is recommended during the first year to check weed growth. Weeding should be
done on regular basis especially around the plants. Application of Fluchloralin or Alachlorin or
Butachlorine (2.0 g./ha.) as pre-emergence herbicide two months after transplanting can
effectively control the weeds for a period of four months. Earthing up is done before or after the
onset of monsoon to avoid water-logging and also to help the plants to stand erect.
Inter-cropping
Intercropping leguminous crops after non-leguminous ones, shallow rooted crops after deep
rooted ones are beneficial. No intercrops are taken after the onset of flowering stage.
Removal of male plants
About 10% of the male plants are kept in the orchards for good pollination where dioecious
varieties are cultivated. As soon as the plants flower, the extra male plants are uprooted.
Plant Protection Measures
Insect Pests
The insect pests mostly observed are fruit flies (Bactrocera cucurbitae), ak grasshopper
(Poekilocerus pictus), aphids (Aphis gossypii), red spider mite (Tetranychus cinnabarinus), stem
borer (Dasyses rugosellus) and grey weevil (Myllocerus viridans). In all cases the infected parts
need to be destroyed along with application of prophylactic sprays of Dimethoate (0.3%) or
methyl demeton (0.05%).
Diseases
The main diseases reported are powdery mildew (Oidium caricae), anthracnose (Colletotrichum
gloeosporioides), damping off and stem rot. Application of wettable sulphur (1 g./l.)
carbendazim/thiophanate methyl (1 g./l.) and Kavach/Mancozeb (2 g./l.) has been found to be
effective in controlling the diseases.
Harvesting and Yield
Fruits are harvested when they are of full size, light green in colour with tinge of yellow at apical
end. On ripening, fruits of certain varieties turn yellow while some of them remain green. When
the latex ceases to be milky and become watery, the fruits are suitable for harvesting.
The economic life of papaya plant is only 3 to 4 years. The yield varies widely according to
variety, soil, climate and management of the orchard. The yield of 75-100 tonnes /ha. is
obtained in a season from a papaya orchard depending on spacing and cultural practices.
Market Potential:-
Since the early 1980s, some agricultural scientists and research institutions have seen GM plants
as the answer to food shortages and malnutrition. In their view of the coming "Evergreen
Revolution," high-yielding, pest-resistant plants will boost the agricultural production of
developing countries. What Monsanto donated is a 10-year, "royalty-free, non-exclusive license
to use the technology to develop, identify, characterize and commercialize" the virus-resistant
papaya in India, according to Bhagirath Choudhary, national coordinator of the International
Service for the Acquisition of Agri-biotech Applications (ISAAA). It is a U.S.-based nonprofit
organization that helps transfer biotechnologies to developing countries so poor farmers can
produce more crops. ISAAA's work is funded by charitable institutions and government
agencies, with technology and training donated by corporations. According to Choudhary, "This
is an important contribution toward alleviation of poverty of small, resource-poor farmers, as
papaya ringspot virus is the most devastating disease of papaya."
Clive James, a Canadian who chairs the ISAAA Board of Directors and has visited India twice in
the past year to promote the development and use of biotechnology, goes even further when
describing the benefits. "Our philosophy is that the aim should be to increase productivity on the
cropland that we have today, that is 1.5 million hectares. If you can double the production on the
land that is already in agriculture, then you will not have to chop down forests and encroach on
sanctuaries of biodiversity."
Some 2.5 billion kilograms of papaya are produced annually in India, in Andhra Pradesh, Assam,
Bihar, Gujarat, Karnataka, Maharashtra, Manipur, Meghalaya, Orissa, Tamil Nadu, Uttar
Pradesh and West Bengal. It is eaten fresh and cooked and processed into pickles, jams, candies,
fruit drinks and juices. Papain, an enzyme purified from papaya latex, is extracted for export.
The enzyme is used in the medicine and textile industries, breweries, leather processing and meat
tenderizing. In light of the significance of papaya to the Indian economy, the introduction of a
GM variety is likely to have a huge impact. Choudhary estimates that the technology promises a
potential benefit of Rs. 112.5 million for India's papaya industry. Major Importing countries and
their quantity ,value base data is given in table 2
3. Proposed Sales & Percentage of Profit :
As per the information the partners profit margin will be as follows. For
supper market(contract with e-choupal, reliance fresh) sales of papayas margin
varies from Rs.9-12, for project purpose, we are calculating Rs.9/- per kg
Therefore Total Gross Margin will be as follows :
1) For Supper market – 87500 kg x 40 ha x Rs 9 x 2 year = 63000000=00
Total Gross Margin for 2 year =Rs 63000000/-
PART-II FINANCIAL ASPECTS OF THE PROJECT
Propose Investment in the Business:-
1. Land 40000000
2. Cost of planting material 22,50,000
3. Cost of fertilizer & manure 2000000
4. Cost of insecticides & pesticides 500000
5. Bore-well/Tube-well (new/old) 2000006. Cost of pipeline (length, diameter & 1450000
type of material used)7. Feritgation(filter etc) 800000
8. Cost of drip irrigation 900000
9. Pump House 60000
10.Store 500000
11.Labour quarter 300000
12.Generator room(+generator) 800000
13.Cost of Tractor & accessories 728000
14.Land development 300000
(including digging of pit & fencing) 16. Cost of Land, if purchased 40000000 Total Fixed cost: 50184000
Working capital Cost of labour 416000
Total project cost: 50600000 Total cost of project : Rs 50600000(Rs Five corer six lakh)
Source of Finance:-
Partners Capital 12650000
Bank term Loan 37972000 Total Project cost: 50600000
Repayment Schedule for term loan:-Borrowed capital requirement is RS-37972000/-After calculation of subsidy
of25% on fixed assets Investment excluding land From NHB,the borrowed term
will be be Rs 25322000 This term loan of 25322000 will repay in next 4 years.
Generally subsidy is credited to loan account within 6 months from the date of commencement of the
project.
4) Repayment Schedule for Term Loan.Yr Op. Bal.of Loan Installment Closing
balance
Term Loan
Int.@ 13%
1 37972000 18986000 18986000 4936360
2 18986000 18986000 o 2468180
5).Gross Incentive Component under this scheme:
1) 25% Subsidy on Fixed Capital i.e. on 37972000/- 9493000=00
2) First a Years Total Interest on Term Loan = 7404540=00
Total Subsidy Component : 16897540=00
6) Schedule of Fixed Assets & Depreciation:
Particulars 1 2Opening Balance of
Assets
56958000 51262200
Less : 10% Depre. 5695800 5126220
Written down value of
Fixed Assets
51262200 46135980
7 ) Profitability analysis for First Year of the business :
Gross Margin Per Year 31500000
Total Gross Profit (A) : 31500000
Less : Indirect Expenses (B)Interest on Bank Term Loan (Exempted) 0Electricity Charges 30000Traveling Expenses 360000Salaries and RentLabour quarter
1800000
Total Indirect Expenses (D) 2190000
Net Profit E (C - D) 29310000
Add : Depreciation 5695800
Gross Cash flow 35005800
Less : Bank Installment 18986000
____________
Net Cash Flow 16019800
6 ) Debt Service Coverage Ratio (DSCR) For First Year :
Net Profit + Depreciation + Interest = --------------------------------------------------------------------
Bank Interest + Installments
16019800+5695800+4936360
= ___________________________ 4936360+18986000
= 1.114102:1
For first year of the project interest is not payable by the firm, for profitability
purpose, interest is taken here for calculation purpose. It shows, the capacity of
profit to hold fixed interest charges and loan repayment capacity. It shows fair ratio
i.e. 1.14 : 1, so business is profitable and interest & debt payment capacity of the
firm is also favorable.
7) Return on Investment Ratio (ROI) :
Net Profit = ------------------------------------------------ x 100
Total Capital Employed (Project Cost)
16019800= ---------------- x 100 50600000
= 31.65%
ROI is more than ideal ratio. I depicts that investment in this business can be
recovered in tow years of period, after that year, business will be run on owned
capital of the proprietor.
Break Even Analysis:-
It is the point of Sales level at which all the costs are recovered.
Total sales
Break even Point=------------------- X Fixed cost
Contribution
(Contribution = Total sales- variable cost)
Contribution=63000000-416000
=62584000
CBEP =( 63000000/62584000)* 50184000
= 50517576
Gives an indication regarding at what level of sale the unit will not make cash
losses - Useful Mainly in analysis of rehabilitating sick units.
I. Name of the Bank/FI from where the term loan is availed/to be availed
by the Beneficiary (Please enclose a copy of the duly filled up term loan
Application).
a) Name of Bank: State Bank of India
b) Details of Bank Branch: Savarkheda……
c) Bank Code:07102
J. Date & Amount of sanction of term
loan, if any : ______________________
K. Details of release of term loan, if any: ______________________
L. DETAILS OF LAND
I) Whether own land (ancestral) : _________________________
ii) Whether own land purchased : __100 Acres
iii)Whether leased
If so, how many years lease : _________________________
M. IMPLEMENTATION SCHEDULE OF PROPOSED ACTIVITYi) Proposed month for undertaking land development: March-Juneii) Proposed month for plantation: June-Julyiii)Expected date/month of first commercial crop: Jan-febiv)Proposed date for start of unit in case of processing:
N. MARKETING OF PRODUCE
Details of marketing tie-up (Backward/forward linkage)
O. Cost of Application Form & Scheme Brochure will be as under:
Projects costing above 50.00 lakh : Rs. 10000/-
The above prescribed cost of application form and brochure will be non- refundable.
P. Please remit the cost of application and scheme brochure by Demand Draft drawn in favour of National Horticulture Board payable at Gurgaon (Haryana) for projects costing Rs. 20.00 lakh & above and at concerned state office where project cost is below Rs. 20.00 lakh.
Name of the issuing Demand Draft No. Amount(Rs.)Bank Branch & Date
SBI 03245(4/03/10) 10000
Q. Name & address of consultant who prepared the project report (DPR).
Certified that the information/contents as above furnished by me/us in the application are true to the best of my/our knowledge & belief and nothing material has been concealed. In case, any information furnished in the application is found false, my/our application may be rejected out rightly at any stage by the Board.
(Signature of the Beneficiary) Name & Address : .........................
Place: Telephone/Fax No. .........................
Date :
Enclosures:
i) Attach copy of record of right over project land.
ii) Affidavit in prescribed format only.
iii) Prescribed cost of application form and scheme brochure.
iv) Detailed Project Report (DPR) - wherever applicable
iv) Duly filled up and signed bank term loan application form/bank consent letter
v) Copy of last Income Tax Return, if any.
vi) Key map of project land showing project details and land boundary details.
vii) NOC issued by Cooperative Society/Partnership Firm, if applicant is covered by Para- 5(h) of Guidelines No.1/2008.
viii) Proof of identity of applicant (refer Para of 3 Guidelines No. 1/2008.)
ix) In case project include item of 'Primary Processing' for manufacturing 'Fruit Products" covered by FPO 1955 then NOC issued by MFPI, Govt. of India be enclosed.
FORMAT-II
AFFIDAVIT
(on stamp paper of Rs. 20)
I/we Sachin Manikrao Lakade (Name of the promoter/Director son of Mr Manikrao Suryabhan Lakade.(father’s name) resident of At Khairgaon (Ka) Post. Wardh Tq Ralegaon Dist.Yavatmal (residence address) do hereby solemnly affirm and declare as under:
1. That I/we am/are individual grower/promoter/director/partner/group of growers/association of growers/proprietor of M/s Sachin M.Lakade (name of beneficiary) having its Registration no. …………………….. Registered Office at ........................................ (office address of beneficiary).
2. I hereby make application and I am duly authorized in my own right/by management vide its resolution no.---- .dated 5/03/10 …………..to apply and sign all required documents including this affidavit on behalf of company/partnership firm/cooperative society named as ………………… ; and am fully aware of the facts relating to the setting up the project at Survey No.126/3, Village.Khargaon(ka)., Tehsil Ralegaon., District Yavatmal State . Maharashtra (location of the project) for .............................. (activities to be undertaken by project) and application is being made to NHB for seeking Letter of Intent (LOI) under the scheme “Development of Commercial Horticulture through Production and Post Harvest Management”.
3. That the term and conditions of the scheme of NHB under which an application is made by the applicant have been properly read and understood by me and I affirm that the project/proposal/scheme comply with the terms and conditions of NHB and the application is made in the correct applicable scheme.
4. That the proposed activities to be undertaken by the project/proposal scheme are covered under the above scheme of NHB and no part of the scheme/infrastructure of the project is designed or assigned to be used for any activity other than the horticulture activities specified in the application at present or in the near future.
5. That the information provided in the application of Letter of Intent (LOI) is true and correct to the best of my knowledge and belief. The estimate of the cost of project/proposal/Scheme, financial viability and operating results have been worked out/computed as per the rule and generally accepted principle and norms in this regard.
6. No subsidy/grant-in-aid other than shown in application form has been availed/is to be availed by the promoters/ directors/partners/proprietors for this new project and component thereof from Central Govt. or any of its agencies Except the NHB.
7. Myself or any other promoter of Cooperative Society, Partnership Firm, Self Help Group has not availed any subsidy from NHB which has not been disclosed in the application.
8. I/we also solemnly affirm that the proposal activity in the application for LOI is a completely new activity and not a pre-existing activity or any component thereof.
In case of concealment of any facts in this regards, the Board would have right to reject my application out right at any stage.
DEPONDENT
DEPONENT VERIFICATION
Verified on solemn affirmation at ............ (place) on this ............ (date) of, .................... (month), 20 .................(year) that the content of the above affidavit are true to the best of my knowledge and belief and nothing material has been concealed.
DEPONDENT/COMPETENT AUTHORITY
