BUSINESS PLAN

MBA (E&L) AMITY BUSINESS SCHOOL

CLASS :- 2012-14
FACULTY: - DR. ANJANI KUMAR SINGH
SUBMITED BY: - VARUN SHARMA
ROLL NO:- 26

TABLE OF CONTENTS

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Executive Summary
Vision Statement
Mission Statement
Industry Overview
Company Ownership
Management Team
Business Strategy
Marketing Strategy
Operating Plan
Applying Technology
Business Risk
Financial Plan

1. EXECUTIVE SUMMARY
PROAB GREEN SOLUTIONS is a premier company in the agricultural sector focusing on Protected
Cultivation of horticultural crops through innovative technology of Commercial Greenhouses.
Basically Greenhouses are enclosed structures having controlled climatic conditions and modified
environment as per the requirements of crops. Protected cultivation of horticultural crops offers the
best choice for diversification in agricultural production. Production of crops under protected
conditions has great potential in augmenting production and quality of vegetables, flowers and in

some fruit crops in main and off season and maximizing water & nutrient use efficiency, under varied
agro climatic conditions of the country.
We are also providing solutions for irrigation by promoting the concept of drip irrigation in a
holistic manner. This method not only economizes the use of water in agriculture by 30 - 50%
depending upon the crop, soil type, season and location but also helps in saving labor to an extent of
60-70% as a very meager labor force would be sufficient to operate the system.

2. VISION
We seek to build a community where people start consuming only high quality fruits and vegetables
and improving the quality of agriculture in our nation resulting in sustainable development.

3. MISSION
PROAB Green Solutions aims to capture a considerable market share in organized retailing of fruits
and vegetables globally and also to increase exports of Indian Horticultural produce by promoting the
concept of protected cultivation and drip irrigation nationwide.

4. INDUSTRY OVERVIEW
India has a wide variety of climate and soil on which a wide range of fruits and vegetable crops are
grown annually. During the last two decades, considerable emphasis has been on production of these
crops in the country. As a result, area in fruits has risen from 3.75 m ha in 1998-99 to 6.38 m ha in
2010-11 accounting for an increase of about hundred percent. There has also been phenomenal
increase in production of fruits from 44.113 million tones in 1998-99 to 74.878 million tones in 201011. India accounts for more than 10% of total production of fruit crops. It leads the world in the

production of mango, banana, sapota and acid limes. In vegetable production, India is next to China
with an annual production 146.60 million tones in 2010-11. As a result India accounts for more than
14% of the world production of vegetables. The average productivity of vegetables is 17.3 tones per
hectare which is almost half of USA and other developed countries.
Area under greenhouses in India has gone up from mere 5 ha in 1983 to more than 20000 ha today.
This growth in greenhouse area has been made possible by indigenous development of greenhouse
technology, liberalized imports of essential components, government popularization programs and
globalized economy. Besides Indian Greenhouse fabricators, a number of international firms have
entered the Indian Market. Greenhouse technology in India has much more potential than what has
been realized so far. It is estimated that the area under greenhouses will increase to over 100,000 ha
during next one decade. This estimate is based on similar experiences in countries like China, South
Korea, Japan, etc. One hundred thousand hectares under greenhouses mean at least 10 lakh new
jobs, greater availability of horticultural produce in domestic market, and development of remote
areas. In the process, the greenhouse industry in India would have developed to the extent that we
would also be able to export the technology to other developing countries.

5. COMPANY OWNERSHIP
It will be a private limited company consisting of approximately 25 employees.

6. MANAGEMENT TEAM
Board of Directors -

General Manager

Technical Advisor

Agriculture Engineer-

Sales executive

Accountant

Skilled labor

Semi- Skilled labor -

Unskilled labor

10

7. BUSINESS STRATEGY
Goals & Objectives

PROAB Green Solutions seeks to make itself a leader in the agriculture industry.
We believe that we can churn out a large share of the fruits & vegetables market in our target
peri urban areas by providing high quality produce.
We assume that people in metropolitan cities are shifting their shopping habits towards high
quality fruits & vegetables through organized retail. So our sales distribution channel would be
through organized retail.
We understand that there is increasing demand of off-season vegetables. To meet this
demand, protected cultivation in Polyhouses is the best optimal solution.

8. MARKETING STRATEGY

Target Market
Primarily our target markets will be the metropolitan cities like Delhi, Mumbai, Kolkata, Chennai,
Bangalore, Hyderabad, Jaipur, Chandigarh etc.

Market Analysis
Total market size of India in Vegetables production

150 million tons

Market size of urban areas

12 million tons

Estimated market share of our company

3.67 %

Estimated market size of urban areas by 2020

( assuming 30% population growth )

15 million tons

Anticipated Growth rate by 2020

25 %

Products
Since it is an agricultural business, the end products would be finished crops of tomato, cherry
tomato, coloured peppers, cucumbers, capsicum, strawberry, grapes etc. We will make sure that we
make our customers feel delighted about our fruits & vegetables by adopting high quality standards.

Pricing
Since we are into a commodity business, so we will always thrive upon adopting competitive pricing
strategies in order to increase our market share. But our fruits and vegetables will be of higher quality
so accordingly we will set our prices as per the norms of the organized retail sector.

Place
Actually we are planning to start our Greenhouses in peri urban areas in order to remain in close
proximity to urban markets. We are focusing on prime locations on the outskirts of major metropolitan
cities in India especially NCR.

Promotion
As a matter of fact, this particular business do not require much of promotion since it is not having
any brand equity. But still we will adopt methods such as Direct marketing, online marketing and
participating in various national level agricultural exhibitions.

9. OPERATING PLAN
Our Company is dedicated in the production of high quality horticultural crops in protected conditions
under commercial greenhouses henceforth requiring no. of operations to be executed in order to
obtain final yield crops.

Various operations in our business are as follows

1. Site Selection for Polyhouses

2. Deciding the design and specifications of Polyhouses
3. Selection of Crops
4. Nursery raising in Greenhouse
5. Seedling Transplantations under protected conditions
6. Drip Irrigation systems or micro sprinklers for irrigation purpose
7. Fertigation process incorporating the use of water soluble fertilizers
8. Process of Pruning & Training
9. Control of weeds though the process of Weeding & Hoeing
10. Disease & Insect Pest management
11. Harvesting Stage & Crop Yield
12. Integrated Post Harvest Management

10. APPLYING TECHNOLOGY

Our company is based on the latest technology of Greenhouses envisaging use of polyhouse
structures for the purpose of protected cultivation for producing high quality horticultural crops.

We are also using technologically advanced drip irrigation systems & fertigation system in
order to reduce the consumption of water by 30-40%.

We will develop website of our company and will be using different types of software for regular
monitoring of crops, business intelligence tools, knowledge management software, CRM
Software, ERP software and IT solutions for integrating all our greenhouses located at different
places to a common server.

11. BUSINESS RISKS

High initial setup cost is required.

Negative trade cycles of organized retail sector may result in lesser demand.

Unfavorable weather conditions can also create problems and damages.

Event of natural calamity would result in complete damage.
Mechanical flaws might take place while installation of irrigation & fertigation systems.

12. FINANCIAL PLAN

For successful execution of any business project it is very essential to have a sound financial plan in
order to justify the commercial viability of our concerned project. We have carefully examined the
Project Cost estimation, sources of funds, projected cash flows and projected financial statements
including balance sheet, income statement and cash flow statement.

Projected Income Statements

(All figures in INR)
Year 1

(a) Net Sales

(b) Cost of Goods sold

Year 2

Year 3

43,00,000

54,00,000

67,00,000

( 22,00,000 )

( 11,50,000 )

( 15,60,000 )

(c) Fixed expenses

(i) Salary & Wages

12,00,000

14,40,000

16,20,000

(ii) Utilities

3,75,000

4,15,000

4,75,000

(iii) Administration expenses

2,25,000

2,75,000

2,95,000

(iv) Advertising & Promotion

50,000

65,000

80,000

4,50,000

4,90,000

5,25,000

Total Fixed Expenses

( 23,00,000 )

( 26,85,000 )

( 29,95,000 )

(d) Profit before Interest payments

[a-(b+c)]

( 2,00,000 )

15,65,000

21,45,000

(v) Misc. Operating Expenses

(e) Interest Payments

( 80,000 )

( 1,25,000 )

( 1,80,000 )

(f) Profit before taxes ( d - e )

( 2,80,000 )

14,40,000

19,65,000

( 84,000 )

( 4,32,000 )

( 5,90,000 )

( 3,64,000 )

10,08,000

13,75,000

(g) Taxes
(h) Net Profit after taxes ( f - g )

Projected Balance Sheet

( All figures in INR )

LIABILITIES

ASSETS

CURRENT LIABILITIES

CURRENT ASSETS

Accounts payable

1,50,000

Accounts receivables

Bills payable

1,25,000

Bills receivables

Bank overdraft

3,50,000

Cash in hand

2,00,000

Inventory

1,35,000

Outstanding expenses

84,000

FIXED LIABILITIES
Bank loan
Unsecured loan

2,50,000
95,000

FIXED ASSETS
8,00,000
10,00,000

Land
Office equipment

15,00,000
5,50,000

Owner`s equity

20,00,000

Machines & instruments

9,80,000

Vehicle

6,90,000

45,00,000
45,00,000

SOURCES OF FINANCE

:
(All figures in INR)

Equity Capital

30,00,000

Bank Loan

8,00,000

Govt. Subsidy

32,00,000

Unsecured loans

10,00,000

Capital Structure :
Total Debts

18,00,000

Total Equity =

30,00,000

Debt to Equity ratio = (1800000/3000000 ) = 06 : 1