PROJECT REPORT

ON

JEEVARMRUTHAM

Works:
SY NO 66/A2, VADLAGUDEM VILLAGE
Dammapet mandal,
BHADRADRI KOTHAGUDEM DIST.
 THE PROJECT AT A GLANCE:

1. Name of the firm. : Surendra Ramakrishna

2. Works. : Sy No 66/A2
, Vadlagudem (V) Dhammapet mandal
(M), Bhadradri Kothagudem Dist.

3. Name of the promoter. : Surendra Ramakrishna

4. Constitution. : Proprietor

5. Sector. : Micro.

6. Line of activity. : Manufacture of

Bio Organic Product

7. Installed capacity. : 3900 Liters / annum

8. Project cost & Means of Finance:
(Rs. in lacs)

Project Cost Amount Means of Finance Amount

Land OWN Capital 8.00
Buildings 8.85
Animals 5.00
Machinery 4.15 Term loan 10.00
Total 18.00 Total 18.00

Promoter contribution: 44.44%

 Introduction

India is striding ahead to face the gigantic triple challenges of sustainable

increased agriculture productivity, environmental sustainability and poverty
alleviation which are further aggravated by climate charge, global competition
and rapidly advancing technologies. In order to meet these challenges, research
and extension systems have to be structured and the client system has to be
organized.

Andhra Pradesh is India`s one of the largest states with about 60-70
percent of population engaged in Agriculture comprising of 80 percent small and
marginal farmers. The productivity and production from various crops is very low.
Farmers are not able to organize themselves to get access to credit and
marketing the research, extension and farmer linkages are also relatively week.
The agricultural development depends on development on appropriate
technologies which has to be decided by technology management system
comprising of all the stakeholders namely; research, extension, farmers, markets
etc.,
The current system of extension is based on the linear transfer of technology
model which need to be made more response to the local situation and
community needs. Therefore the shift should focus on providing integrated range
of services and to make the grass root workers work more on the location specific
problems and be accountable to the community. The new approach also calls for
organizing farmers into commodity interest groups / farmers interest groups and
federations so that these institutions become the platforms to deliver the
integrated range of services from production to marketing. The above
interventions calls for preparing plans from the village level with convergence and
in a participatory manner involving all stakeholders.

SCOPE OF THE PROJECT

The Project envisages setting up of a unit for the manufacture of Bio Organic Product
unit at Sy No: 66/A2, Vadlagudem Village Dhammapet Mandal, Bhadradri
Kothagudem Dist. He total cost f the Project at Rs. 18.00 lacs. The installed capacity
of the unit is 3900 Litres. on 300 days working on 8 hrs /day. The operating capacity
of the unit is assuming 60%, 70%, 80%. In the first three consecutive years.

Background of the Promoter

Mr. Surendra Ramakrishna S/o Sri Jagan Mohan rao aged 27 years residing at
Nersugudem, Jeedugumulli, Tatiyakulagudem, West Godavari. He is an income tax
assesse. He had a vast experience in this line of activity. He is the sole proprietor of
the unit.
 CONSTITUTION & SECTOR:

The proposed unit by name and style Mr. Surendra Ramakrishna Proprietor
concern, the main object of the unit is to manufacture of Bio Organic Product. The
unit comes under Micro Sector

PROCESS OF MANUFACTURE

Preparation
Mix all the ingredients in one storage tank, till all the solids are mixed well in
the water
Cover the drum and store in a dry place for 48 hours in room temperature
(above 12 Centigrade) or 96 hours if the temperature in below 12 degree
Centigrade
Mix the mixture well in clock wise direction for about 1 minute regularly once
in early morning and evening
Dosage and Usage:
200 Liters of Jeevamrutham per acre can be used once or twice in every
month*** for all kinds of crops
It improves the crop health by bring back the fertility to soil which was lost
due to use of chemical pesticides
It improves the resistance power of the crop

RAW MATERIALS
The required raw materials are Cow urine, Cow Dung, Jaggery, Bengal gram
Flour, Antil Soil. This is abundantly available in the surrounding areas and there is no
shortage of Raw material in the local market.
 MARKETING

The end product i.e. Jeevamrutham is a agriculture organic pesticide and has
good market potential as the agriculture sector who are interested in organic farming
are solely dependent upon this product for their need. It can be exported to many
place where there are agricultural fields. Since, this is the artificual age there is
organci growth for agriculture in every nook and corner of the world. Our proposed
unit will cater to the needs of the farmers in the neighboring tow districts of Andhra
Pradesh. In which the unit is proposed to be established. The main consumers of this
product are farmers

LOCATION AND ADVANTAGES

Land: The proposed location of the unit is situated at

Sy No: 66/A2, Vadlagudem Village Dhammapet Mandal, Bhadradri Kothagudem Dist.
The site is located centrally notified backward area. The location of the industry has
considerable influence on the techno- economical facility of the project. There are
various factors contributing the functioning of an industry and following are the
primary factors taken into consideration.

Reasons for Selection of the Site:

Adequate Raw Materials
Adequate labor at economical rate.
Adequate supply of water throughout the year.
The site is well connected with road facility.
Banking facilities and Government supports.
Adequate Transport facilities for economical transportation of finished product
and spare parts.
Nearest to the market

PROJECT COST AND MEANS OF FINANCE

Project Cost Amount Means of Finance Amount
Land OWN Capital 8.00
Buildings 8.85
Plant & Machinery 4.15 Term loan 10.00
Animals 5.00
Total 18.00 Total 18.00

DETAILED NOTES ON PROJECT COST

 Land: The promoter has taken the land at Sy No: 66/A2, Vadlagudem
Village Dhammapet Mandal, Bhadradri Kothagudem Dist .
The proposed location is very ideal for the proposed unit.
Buildings : The promoter is going to construct the civil construction worth of Rs. 8.64
Lacs are following:

S. No Description Amount

1 Shed for 10 Cows 3,04,540.00

2 Platforms 85,580.00

3 Water Storage Tank for Drinking Purpose for 35,000.00

Cows

4 50 Feet Cow Urine Collectable Tank 3,50,000.00

5 Land Development & Electricals 1,10,000.00

Total 8,85,120.00

Machinery: All the machinery is available and delivery time in one month.

List of the Machinery:

S.No Type of Machine Rate
1. Chaff Cutter 1,05,000.00
2. Dumping Machine 40,000.00
3. Transport Tank 2,35,000.00
4. Misc. 35,000.00
Total 4,15,000.00

Animals: The unit requires 10 Cows each cost Rs. 50,000 Total Rs.5.00 Lacs

DETAILED NOTES ON MEANS OF FINANCE

CAPITAL: The proposed capital

TERM LOAN: The Proprietor desire to avail term loan from Bank. The term loan
required is 10.00 lacs. The term loan will be paid in 28 quaterly installments with
moratorium period of 12months

UTILITIES AND SERVICES

POWER: The Unit requires 10 HP power under LT connection

Employment: The unit will employ 5 persons and will recruit locally

Water: Only domestic water is requiring for drinking and sanitation bore well is
provided in the scheme.

Pollution: Pollution free industry. No approval is required.

SWOT ANALYSIS

(A) Strength:

1) The unit is proposed at Sy No 66/A2, vadlagudem Village, Dammapeta Mandal,

Bhadradri Kothagudem Dist
2) The Promoters have studied and got knowledge in manufacturing of product and
its marketing.
4) Availability of Labour.
5) Availability of raw material

B) Weakness:
The Unit has to compete with the existing units. However, being on of its kind and
having good market potential they can compete with them. The Unit is one of its
kinds in the area where the market potential as well as raw material is substantial.

(C) Threats:
The proposed unit is a new unit local market. In balance, there is adequate
market share for the unit in view of the demand supply gap. The unit would be in
a position to counter in the threats if any, because of Government
encouragement in and also being a small-scale industry.
ASSUMPTIONS FOR PROFITABILITY STATEMENT
Installed Capacity : 200 Litres / day
No. of Working Days : 300 days.
2000X300 = 600000 Liters.
OPERATING CAPACITY IS ASSUMED AS UNDER
Year 1st Year 2nd Year 3rd Year
Utilization 60% 70% 80%
Production (tons) 360000 420000 480000
COST OF RAW MATERIALS REQUIRMENT: (per annum)
cost of raw material
S. Description Qty/ Kgs Unit Price Amount
No
1 Black Jaggery 3600 239.00 860400.00
2 Bengal Gram 3600 51.00 183600.00
Total 1044000.00

Power charges are estimated as under Contracted load:

Energy charges: 10 HPx 24x300x0.745x0.8x0.60x6.50 = 167356.80
Say 1.67
Wages are calculated as under
Skilled workers = 3x4, 000 = Rs.12, 000
Unskilled workers = 1x3, 500 = Rs. 3, 500
-------------
15, 500x12
= 1,86, 000/-

SALES: 360000X 6 = 21,60,000.00

Depreciation :- Depreciation was been calculated on written down value method

Buildings = 10%
Plant & machinery 25%
Interest :- Interest has been calculated as per effective rate
Term Loan : 12.50%
Working Capital : 12.00%