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BIF Farming Projects 2014
www.BigIndiaFarms.com
Poultry Project
Poultry Project – Big India Farms (BIF)
Poultry Size (Birds) 100Farm Land area required 1 acre
Setup ExpensesMembership Fee* 400,000Poultry House 60,000Birds 40,000Misc, Supporting infra 50,000Farm Land Lease (3 yrs)** 90,000Total 640,000
Annual Operating Expenses Year 1 Year 2 Year 3Staff, Labour 50,000 50,000 50,000Poultry Feed 48,000 48,000 48,000Misc, Vet, etc 20,000 20,000 20,000Total 118,000 118,000 118,000
Annual Revenue*** 320,000 320,000 320,000Annual Operating Expenses 118,000 118,000 118,000Annual Net Income 202,000 202,000 202,000
Cash Flow ProjectionYear 0 -640,000Year 1 202,000Year 2 202,000Year 3 602,000
21.40%
Notes:*Membership Fee is refundable deposit after 3 years (it should be considered as license fee for our R&D efforts).**Farm Land Lease is applicable for those who don't have existing farm land managed by BIF***Annual Revenue can be +/- 10 percent of indicated number# In case of early project closure due to any unforeseen business reasons, Membership Fee, Setup expenses in birds, and any unutilized Farm Land lease fee shall be refunded after deducting any Paid Net income.
IRR (project return per annum)
Poultry Project – Big India Farms (BIF)
Poultry Size (Birds) 200Farm Land area required 1.5 acres
Setup ExpensesMembership Fee* 600,000Poultry House 120,000Birds 80,000Misc, Supporting infra 100,000Farm Land Lease (3 yrs)** 145,000Total 1,045,000
Annual Operating Expenses Year 1 Year 2 Year 3Staff, Labour 100,000 100,000 100,000Poultry Feed 96,000 96,000 96,000Misc, Vet, etc 40,000 40,000 40,000Total 236,000 236,000 236,000
Annual Revenue*** 640,000 640,000 640,000Annual Operating Expenses 236,000 236,000 236,000Annual Net Income 404,000 404,000 404,000
Cash Flow ProjectionYear 0 -1,045,000Year 1 404,000Year 2 404,000Year 3 1,004,000
27.80%
Notes:*Membership Fee is refundable deposit after 3 years (it should be considered as license fee for our R&D efforts).**Farm Land Lease is applicable for those who don't have existing farm land managed by BIF***Annual Revenue can be +/- 10 percent of indicated number# In case of early project closure due to any unforeseen business reasons, Membership Fee, Setup expenses in birds, and any unutilized Farm Land lease fee shall be refunded after deducting any Paid Net income.
IRR (project return per annum)
Poultry Project – Big India Farms (BIF)
Poultry Size (Birds) 400Farm Land area required 2 acres
Setup ExpensesMembership Fee* 800,000Poultry House 240,000Birds 160,000Misc, Supporting infra 200,000Farm Land Lease (3 yrs)** 180,000Total 1,580,000
Annual Operating Expenses Year 1 Year 2 Year 3Staff, Labour 200,000 200,000 200,000Poultry Feed 192,000 192,000 192,000Misc, Vet, etc 80,000 80,000 80,000Total 472,000 472,000 472,000
Annual Revenue*** 1,280,000 1,280,000 1,280,000Annual Operating Expenses 472,000 472,000 472,000Annual Net Income 808,000 808,000 808,000
Cash Flow ProjectionYear 0 -1,580,000Year 1 808,000Year 2 808,000Year 3 1,608,000
39.80%
Notes:*Membership Fee is refundable deposit after 3 years (it should be considered as license fee for our R&D efforts).**Farm Land Lease is applicable for those who don't have existing farm land managed by BIF***Annual Revenue can be +/- 10 percent of indicated number# In case of early project closure due to any unforeseen business reasons, Membership Fee, Setup expenses in birds, and any unutilized Farm Land lease fee shall be refunded after deducting any Paid Net income.
IRR (project return per annum)
Dairy Farm Project
Dairy Project – Big India Farms (BIF)
Project Size (Cows) 10Farm Land area required~ 0.5 acre
Setup ExpensesMembership Fee* 200,000Cow House 50,000Cows and Bull procurement 300,000Misc, Supporting infra 150,000Farm Land Lease (3 yrs)** 45,000Total 745,000
Annual Operating Expenses Year 1 Year 2 Year 3Staff, Labour 50,000 50,000 50,000Feed and Water 120,000 120,000 120,000Misc, Vet, etc 50,000 50,000 50,000Total 220,000 220,000 220,000
Annual Revenue*** 500,000 500,000 500,000Annual Operating Expenses 220,000 220,000 220,000Annual Net Income 280,000 280,000 280,000
Cash Flow ProjectionYear 0 -745,000Year 1 280,000Year 2 280,000Year 3 780,000
29.28%
Notes:*Membership Fee is refundable deposit after 3 years (it should be seen as license fee for our R&D efforts).**Farm Land Lease is applicable for those who don't have existing farm land managed by BIF***Annual Revenue can be +/- 15 percent of indicated number^Annual Operating Expenses have to be paid at the start of year.# Max Capital at risk initially (Rs) 125,000 (risk reduces as income starts)~ Project will be setup in Sohagpur area, even for farm owners with land near Jabalpur, Umaria, MandlaProject can be relocated to farm lands near Jabalpur area after 1 year, subject to prevailing conditions.BIF farm land owners don't have to pay Farm Land Lease fee.
IRR (project return per annum)
Dairy Project – Big India Farms (BIF)
Project Size (Cows) 20Farm Land area required~ 1 acre
Setup ExpensesMembership Fee* 400,000Cow House 100,000Cows and Bull procurement 600,000Misc, Supporting infra 250,000Farm Land Lease (3 yrs)** 90,000Total 1,440,000
Annual Operating Expenses Year 1 Year 2 Year 3Staff, Labour 100,000 100,000 100,000Feed and Water 200,000 200,000 200,000Misc, Vet, etc 50,000 50,000 50,000Total 350,000 350,000 350,000
Annual Revenue*** 1,020,000 1,020,000 1,020,000Annual Operating Expenses 350,000 350,000 350,000Annual Net Income 670,000 670,000 670,000
Cash Flow ProjectionYear 0 -1,440,000Year 1 670,000Year 2 670,000Year 3 1,670,000
39.48%
Notes:*Membership Fee is refundable deposit after 3 years (it should be seen as license fee for our R&D efforts).**Farm Land Lease is applicable for those who don't have existing farm land managed by BIF***Annual Revenue can be +/- 15 percent of indicated number^Annual Operating Expenses have to be paid at the start of year.#Max Capital at risk initially (Rs) 225,000 (risk reduces as income starts)~ Project will be setup in Sohagpur area, even for farm owners with land near Jabalpur, Umaria, MandlaProject can be relocated to farm lands near Jabalpur area after 1 year, subject to prevailing conditions.BIF farm land owners don't have to pay Farm Land Lease fee.
IRR (project return per annum)
Fishery Project
Fishery Project – Big India Farms (BIF)
Project Size (Fishes) 20000Farm Land area required~ 0.5 acre
Setup ExpensesMembership Fee* 250,0002 ponds 200,000Fish Eggs, Fishlings, First feed 50,000Misc, Supporting infra 50,000Farm Land Lease (3 yrs)** 50,000Total 600,000
Annual Operating Expenses Year 1 Year 2 Year 3Staff, Labour 50,000 50,000 50,000Feed and water 60,000 60,000 60,000Misc, Vet, etc 30,000 30,000 30,000Total 140,000 140,000 140,000
Annual Revenue*** 400,000 400,000 400,000Annual Operating Expenses 140,000 140,000 140,000Annual Net Income 260,000 260,000 260,000
Cash Flow ProjectionYear 0 -600,000Year 1 260,000Year 2 260,000Year 3 510,000
28.51%
Notes:*Membership Fee is refundable deposit after 3 years (it should be seen as license fee for our R&D efforts).**Farm Land Lease is applicable for those who don't have existing farm land managed by BIF***Annual Revenue can be +/- 15 percent of indicated number^Annual Operating Expenses have to be paid at the start of year.# Capital at risk initially (Rs) 275,000 (reduces after one iteration)~ Project will be setup in Sohagpur area, even for farm owners with land near Jabalpur, Umaria, Mandla
IRR (project return per annum)
Fishery Project – Big India Farms (BIF)
Project Size (Fishes) 40000Farm Land area required~ 1 acre
Setup ExpensesMembership Fee* 350,0004 ponds 400,000Fish Eggs, Fishlings, First feed 100,000Misc, Supporting infra 100,000Farm Land Lease (3 yrs)** 90,000Total 1,040,000
Annual Operating Expenses Year 1 Year 2 Year 3Staff, Labour 100,000 100,000 100,000Feed and water 120,000 120,000 120,000Misc, Vet, etc 50,000 50,000 50,000Total 270,000 270,000 270,000
Annual Revenue*** 800,000 800,000 800,000Annual Operating Expenses 270,000 270,000 270,000Annual Net Income 530,000 530,000 530,000
Cash Flow ProjectionYear 0 -1,040,000Year 1 530,000Year 2 530,000Year 3 880,000
35.07%
Notes:*Membership Fee is refundable deposit after 3 years (it should be seen as license fee for our R&D efforts).**Farm Land Lease is applicable for those who don't have existing farm land managed by BIF***Annual Revenue can be +/- 15 percent of indicated number^Annual Operating Expenses have to be paid at the start of year.# Capital at risk initially (Rs) 550,000 (reduces after one iteration)~ Project will be setup in Sohagpur area, even for farm owners with land near Jabalpur, Umaria, Mandla
IRR (project return per annum)
Vegetable Farming Project
Vegetable Farming – Big India Farms (BIF)
Size Half AcreFarm Land area required 0.5 acre
Setup ExpensesMembership Fee* 0 (waived off as it’s a high risk project)Land preparation 20,000Water facilities 50,000Misc, Supporting infra, sun film 150,000Farm Land Lease (3 yrs)** 0 (waived off as it’s a high risk project)Total 220,000
Annual Operating Expenses Year 1 Year 2 Year 3Staff, Labour 100,000 100,000 100,000Fertilizer, Nutrients, Water 40,000 40,000 40,000Total 140,000 140,000 140,000
Annual Revenue*** 360,000 360,000 360,000Annual Operating Expenses 140,000 140,000 140,000Annual Net Income 220,000 220,000 220,000
Cash Flow ProjectionYear 0 -220,000Year 1 220,000Year 2 220,000Year 3 220,000
83.92%
Notes:*Membership Fee is refundable deposit after 3 years (it should be seen as license fee for our R&D efforts).**Farm Land Lease is applicable for those who don't have existing farm land managed by BIF***Annual Revenue can be +/- 15 percent of indicated number^Annual Operating Expenses must be paid at the start of year.#Max Capital at risk initially (Rs) 140,000 (risk reduces significantly by end of year 1)If year 1 fails to deliver results, and investors discontinue in year 2, they will lose the Setup investments.Then Max Capital at risk is (Rs) 360,000Investors willing to continue in year 2 with incremental capital, even if risks materialize in year1,can benefit from this full upside potential of project opportunity.
IRR (project return per annum)
Fruit Tree Plantation Project
FRUIT TREE PLANTATION PROJECT 2014Land Area3 Acres (~Rs 1.5 lakh/acre)Total Land Investment ~ Rs 4.5 lakh
Fruit Trees450 trees (avg 150 trees/acre)
Setup CostDuring year 1Water Tank: 80,000Pump/pipes: 10,000Storage/Watchman Room: 30,000Saplings+Fertilizer+Setup: 84,000 (28k/acre)Fence: 10,000*Total: Rs 2.14 lakh
Annual Operating ExpenseFrom year 1Farm Maintenance: 36,000 (12k/acre)Fence Maintenance: 10,000Total: Rs 46,000 per annum
Annual Net IncomeFrom year 5Rs 60,000 per annum (Rs 20,000 per acre with +/- 20% range)**
The fruit plantation can produce inflation-proof income from year 5 to year 20. This agri income will be available to the farm owner at the year-end once the plantation starts production. The fruit trees will start fruit production from year 5, while the plantation value will increase every year as the trees grow.
Cash Flow Projection:Year 1: (-214,00) + (-46,000) = -260,000Year 2: -46,000Year 3: -46,000Year 4: -46,000Year 5 to 20: +60,000
Asset Value in 10 yrs (estimate)Fruit Trees: Rs 7 lakh (avg Rs 1500 per tree)Land value: Rs 18 lakh (can appreciate 4x in 10 years from today's price levels)Total Plantation Value ~ Rs 25 lakh (excluding annual income)Total Investment ~ Rs 9 lakh
Notes:*Fence cost is Rs 20,000 for temporary fence (using shrubs, i.e., non-metallic), which will suffice the need for security of plantation. Permanent fence would cost about Rs 2 lakh, and is not necessary in our view. The temporary fence has a life of 2 years, so it needs ongoing maintenance and renewal every alternate year. Therefore, we budget Rs 10,000 per year towards fence.
**Net income of Rs 20,000 per acre is the amount available to farm owner after all expenses. From year 5, we expect the plantation to produce annual net income of about Rs 25K per acre, to be shared 80/20 between farm owner and BIF. Hence farm owner can expect net income of approx Rs 20K per acre. The net income will have +/- 20% range because fruit production varies from year to year.
***The Fruit Tree Plantation will have multiple varieties of fruits for diversification and stability of income. Fruits will include combination of: Mango, Guava, Orange, Lemon, Sapota/Cheeku, Jackfruit
Risk profile of business: Low to Medium.Risk factors: Plant mortality and replacement time loss, Severe climate, Low fruit yield risk.
Thank You
www.BigIndiaFarms.com
