Wednesday 1 January 2014

Can we sell all our produce in India ?

In any intensive farming where huge quantities are produced the major factors governing a profitable and successful operation is

1. Methods of efficient production  in  disciplines like Animal Husbandry, Egg Production, Egg Powder Manufacturing. Weightage    20%

2. Trained Personnel  and manpower in the production in specific disciplines . Weightage 30%

3. To follow Industry regulations of the specific  disciplines with regards to Carbon Foot Print.  Weightage 10%

4. Smooth and efficient sale of all produce with no wastage and zero returns. Weightage 40%

Range of efficiencies from 1 to 10, where 10 is the most efficient.


The table below illustrates broadly the factor of success any new  aggro project  will achieve commercially.



Item
Canada
Weighted
USA
Weighted
Australia
Weighted
India
Weighted










Efficient Production Methods - 20%
1
10
200
10
200
10
200
9
180
Trained Personnel - 30%
2
3
90
3
90
3
90
10
300
Carbon Foot Print - 10%
3
10
100
10
100
10
100
8
80
Sales and Marketing - 40%
4
5
200
5
200
5
200
10
400










Totals


590

590

590

960
Weighted Avg


5.9

5.9

5.9

9.6

The tables shows that when any New Agricultural product is commercially farmed in India the score is very high.

Some reasons for the high score.

1. The supply of various items like eggs , milk, meats , Lentils is well below the domestic demand of the country.

2. The demand has increased due to change in dietary habits due to better economic performance within the country.

3. Inflation is  existent at  +10% and trending to increase - this will effect the bottom line positively in case of any farm produce.

4. One the important factors is the availability of electric power for sustained use of project automation.  Some States have power only available for 3 hours a day.    We have chosen a State with Surplus and cheap Power. All production activity will be in Himachal Pradesh.

5. All produce can be sold domestically  and could also be exported  to UAE, Iran, Middle East, Phillipines for increased profitability.

6. Trained manpower available from the many agricultural universities.

7.     5.5 acres of Land has been purchased in Himachal Pradesh and negotiation are in process for an extended 99 year lease of 50 acres of Govt Land.

8. The subsidies being offered by the Centre and Himachal Pradesh government is 55% of project cost, payable after completion of the first year.

9. Most projects have a ROI of  30% to 100% after debt service.

10. Government of India allows Foreign Direct Investment for Animal Husbandry and poultry projects, 100% allowed. Repatriation of  profits allowed at official exchange rates.

11. To reduce carbon footprint there is central BioGas Plant which will utilize farm waste to produce heat, electricity and Air conditioning. Examples of Farm 
waste - Chicken Litter, Goat Manure, Pig Manure . The resultant fertilizer produced is odourless and can be used in   fields to grow organic produce. ( this is  viable because of 55% subsidy )

Opportunity for Investor.

1. Units in project will consistently return more than 10% for as long as the project is managed efficiently. The returns will be much higher as the pay back of all  bank loans of most projects is   within 4 years. 
2. The income earned from your shares are tax free in India.
3. Repatriation of  profits allowed at official exchange rates.
4. The projects are being managed by  Capt. Sarabjit Sandhu, resident of Ontario Canada and his selected team of experts as a commercial venture.


Captain WB
sarabsandhu@me.com

PS: Will regularly post about my wins regarding this project.