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 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]

Batch: 2009-11 [Fresh]

Fresh Papaya Fruit Production Project:-

S&S. Papaya Grower
Sachin Lakade At Khairgaon( kasar) Post Wardh Tq Ralegaon Dist Yavatmal

FORMAT-I
1) 2) Date of application Control No. : (to be given by NHB)

PHOTO

To, The Centre In-Charge National Horticulture Board ........................................................... ........................................................... To The Managing Director National Horticulture Board Plot 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/ENTREPRENEUR 1. Name : Sachin Lakade Permanent Address :_At Khairgaon (kasar),Post: Wardh Tq:-Ralegaon Dist:-Yavatmal Postal Address : At Khairgaon (kasar),Post: Wardh Tq:-Ralegaon Dist:-Yavatmal 2. 3. 4. 5. Category : SC Gender : Male Age _28______ Occupation : Business Man Promoters/beneficiary profile i) Principal Promoter/Beneficiary ii) Others iii) 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 Papaya 2. 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 acres
Name of the Crops i) ii) Papaya..... ............. Variety(s) .Tivan . Area ( acres ) No. of plants Source of Planting Material 100acres 150000 Nursery ……………. ..................... ................... …………….

b) c) d)

e) f)

PHM Activity - Grading & packing/Pre-cooling/Refer Van:Primary processing - Activity in brief with details of products:Horticulture ancillary industry e.g. tools, equipments, plastics, packaging etc. - Activity in brief :Misc. activities (Not covered in a to d) - Activity in brief :Refer Van/Specialized Transport Vehicle

Yes Nil

Nil Yes Yes

B.II (a) Whether proposed activity in application is
(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 for the proposed proposal/activity from Central Govt. or any of its Agencies. (if YES, please indicate clearly in detail ..................................................................................... .....................................................................................

No

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 (iii) Source of planting material & proposed variety(ies) (iii)Cost of insecticides & pesticides (iv) 500000 Cost of labour 416000 2000000

(v) Other expenditure, if any (pl. specify) .......................... 2) Irrigation (i) Bore-well/Tube-well (new/old) (iii)Cost of pipeline (length, diameter & type of material used) (iv) (existing/new & size) (v) Other expenditure, if any (pl. specify) Feritgation(filter etc) 3) Micro Irrigation, use of plastic mulching etc. (i) Cost of drip irrigation (ii) Cost of sprinkler (iii) Cost of plastic mulching (iv) 4) Infrastructure (i) Pump House (ii) Store (iii)Labour quarter (iv) 800000 60000 500000 300000 Generator room(+generator) Other expenditure, if any (pl. specify) 900000 800000 200000 1450000

Water harvesting pond ..........................

(v) Other expenditure, if any (pl. specify) .......................... 5) Cost of Tractor & accessories [If area under cultivation (project) is above 05 acres] 6) Land development (including digging of pit & fencing) 7) Cost of Land, if purchased 8) Creation of controlled atmosphere 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 (ii) Bank/FI term loan (iii)Proposed subsidy from other sources, if any a) Form State Govt. b) From Central Govt. other than NHB Total .
(Note: Unsecured loans from friends/relatives will not be treated as equity)

728000

300000

Area (sq. mtrs) .

40000000 Cost

............................ ………………… 12650000 28479000 9493000

50600000

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 (OctoberNovember).

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, P 2O5 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. 2.

Land Cost of planting material

40000000 22,50,000 2000000 500000 200000 1450000 800000 900000 60000 500000 300000 800000 728000 300000 40000000 50184000 416000

3. Cost of fertilizer & manure 4. Cost of insecticides & pesticides 5. Bore-well/Tube-well (new/old) 6. Cost of pipeline (length, diameter & 7.
type of material used) Feritgation(filter etc)

8. Cost of drip irrigation 9. Pump House 10. Store 11. Labour quarter 12. Generator room(+generator) 13. Cost of Tractor & accessories 14. Land development
(including digging of pit & fencing) 16. Cost of Land, if purchased Total Fixed cost: Working capital Cost of labour

Total project cost: Total cost of project : Rs 50600000(Rs Five corer six lakh) Source of Finance:Partners Capital Bank term Loan Total Project cost:

50600000

12650000 37972000 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 1 2
37972000
18986000 18986000 18986000

Closing balance
18986000

Term Loan Int.@ 13%
4936360
2468180

o

5).Gross Incentive Component under this scheme: 1) 25% Subsidy on Fixed Capital i.e. on 37972000/2) First a Years Total Interest on Term Loan = Total Subsidy Component : 6) Schedule of Fixed Assets & Depreciation: Particulars Opening Balance of Assets Less : 10% Depre.
Written down value of
9493000=00

7404540=00 16897540=00

1
56958000

2
51262200

5695800 51262200

5126220 46135980

Fixed Assets

7 ) Profitability analysis for First Year of the business :
Gross Margin Per Year Total Gross Profit (A) : Less : Indirect Expenses (B) Interest on Bank Term Loan (Exempted) Electricity Charges Traveling Expenses Salaries and Rent
Labour quarter
31500000 31500000

0 30000 360000 1800000

Total Indirect Expenses (D) Net Profit E (C - D) Add : Depreciation Gross Cash flow Less : Bank Installment

2190000
29310000

5695800
35005800 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 iii) Whether leased If so, how many years lease : : :

_________________________ __100 Acres _________________________

M. IMPLEMENTATION SCHEDULE OF PROPOSED ACTIVITY i) Proposed month for undertaking land development: March-June ii) Proposed month for plantation: June-July iii) Expected date/month of first commercial crop: Jan-feb iv)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 Bank Branch Demand Draft No. & Date Amount(Rs.)

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: Date : Telephone/Fax No. .........................

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

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