Biofertilizer Business Plan

Bhoomiputra Bhoomiputra FertilizerFertilizer

Bhoomiputra Bhoomiputra FertilizerFertilizer

By Group:--8By Group:--8By Group:--8By Group:--8

COMPANY PROFILE

COMPANY NAME :BHOOMIPUTRA FERTILIZERCOMPANY NAME :BHOOMIPUTRA FERTILIZER

TYPE :PRIVATE LIMITEDTYPE :PRIVATE LIMITED

INDUSTRY :FERTILIZER INDUSTRYINDUSTRY :FERTILIZER INDUSTRY

HEAD OFFICE :MOGA, PUNJAB.HEAD OFFICE :MOGA, PUNJAB.

PRODUCT :VERMI COMPOST FERTILIZERPRODUCT :VERMI COMPOST FERTILIZER

TAG LINE :“KNOW THE FARMERS, TAG LINE :“KNOW THE FARMERS,

KNOW THE FUTURE”KNOW THE FUTURE”

MISSION STATEMENT

““we are here to provide the best natural we are here to provide the best natural fertilizers to the farmers to improve fertilizers to the farmers to improve the entire ecosystem and we want to the entire ecosystem and we want to serve the society in the best way by serve the society in the best way by caring their health through natural caring their health through natural products.”products.”

CONCEPT

Inter-related co-operationInter-related co-operation Benefit of both nature and humanity.Benefit of both nature and humanity. A profound impact on soil qualityA profound impact on soil quality Enhancing soil structure and fertilityEnhancing soil structure and fertility Maintain soil biological activities. Maintain soil biological activities.

ORGANIC AGRICULTURE

High quality of the crop

to avoid all form of pollution

To enhance the biological cycle

To work with the natural systems

To use renewable resources

To consider social & ecological system

Rectification pollution

& degradation

Organic Farming: Need of the Organic Farming: Need of the Hour Hour

Use of synthetic fertilizers, herbicides, pesticides, and Use of synthetic fertilizers, herbicides, pesticides, and

fungicides have polluted the agriculture land. fungicides have polluted the agriculture land.

Removal of micronutrients without replenishing them.Removal of micronutrients without replenishing them. Human health hazards and biodiversity.Human health hazards and biodiversity.

Due to soil, air and water pollution, the beneficial Due to soil, air and water pollution, the beneficial microbial load in the soil has reduced.microbial load in the soil has reduced.

Biogas Plant

Vermi Composting

Plant

Storage Plant

250ft

250ft250ft

200ft

200ft

200ft

50ft

150ft

250ft Offices

200ft

Warehouse

Cow Dung

Industrial Garbage

Research and Development

Unit

Filtering Plant

Packaging

Cow Dung for Biogas Plant

Industrial Garbage

Filtering PlantBACK

GAS FLOW

BIOGAS STORAGE

VERMI COMPOSTING UNIT BACK

ESTRACTING THE

EARTHWORM FROM

FERTILIZER

DRYING AND HARMONS MIXING

PACKAGING

EXTRACTING EARTHWORM

ROADR

OA

D

BACK

PLANT

HANDLE &

TRANSPORTWAREHOUSE

DEALERS / RETAILERS

COW YARD

SUPPLY CHAIN

COW YARD

COW YARD

COW YARD

INDUSTRY

INDUSTRY

INDUSTRY

MUNICIPALITY

MUNICIPALITY

MUNICIPALITY

FARMERS

FIELD STAFF PUSH-UP

DISTRIBUTORPUSH-UP

HANDLE &

TRANSPORT

HUMAN RESOURCE HUMAN RESOURCE

• ESTIMATION OF WORKFORCE REQUIREMENT ESTIMATION OF WORKFORCE REQUIREMENT

• RECRUITMENT AND SELECTION RECRUITMENT AND SELECTION

• TRAINING AND DEVELOPMENT TRAINING AND DEVELOPMENT

• PERFORMANCE APPRAISAL PERFORMANCE APPRAISAL

• REWARD REWARD

ESTIMATION OF WORKFORCE ESTIMATION OF WORKFORCE REQUIREMENTREQUIREMENT

MARKETINGMARKETING

CMOCMO

MARKETING EXECUTIVE = 5MARKETING EXECUTIVE = 5

SALES MANAGER = 10SALES MANAGER = 10

50 FIELD SUPERVISOR = 5050 FIELD SUPERVISOR = 50

OPERATIONSOPERATIONS

COOCOO

SUPERVISOR = 8SUPERVISOR = 8

OPERATION LABOR = 40OPERATION LABOR = 40

FINANCEFINANCE

CFOCFO

HEAD ACCOUNTANT = 2HEAD ACCOUNTANT = 2

ACCOUNTANT = 6ACCOUNTANT = 6

RESEARCH AND DEVELOPMENTRESEARCH AND DEVELOPMENT

SENIOR SCIENTIST = 1SENIOR SCIENTIST = 1

JUNIOR SCINTIST = 5JUNIOR SCINTIST = 5

HUMAN RESOURCEHUMAN RESOURCE

GENERAL MANAGER

CHIEF FINANCIAL OFFICERCHIEF FINANCIAL OFFICER

CHIEF MARKETING OFFICER

CHIEF OPERATIONAL OFFICERRESEARCH AND DEVELOPEMENT

CHIEF FINANCIAL OFFICER CHIEF FINANCIAL OFFICER

HEAD ACCOUNTANT(OPERATION AND PURCHASING)

HEAD ACCOUNTANT(MARKETING AND HUMAN RESOURCE)

ACC 1

ACC 2 ACC3 ACC1 ACC2

ACC3

CHIEF MARKETING OFFICERCHIEF MARKETING OFFICER

Marketing executive Marketing executive Marketing executive Marketing executive Marketing executive Marketing executive Marketing executive Marketing executive Marketing executive Marketing executive

Ten marketing Ten marketing supervisorsupervisor





2 Sales 2 Sales ManagerManager





CHIEF OPERATIONAL OFFICERCHIEF OPERATIONAL OFFICER

Two supervisor Two supervisor (Filtering Plant)(Filtering Plant)

Two Two supervisor supervisor

(Bio Gas (Bio Gas Plant)Plant)

Two supervisor Two supervisor (Vermicompost (Vermicompost

Plant)Plant)

Two Two supervisor supervisor (packaging (packaging

plant)plant)Eight field laborEight field labor Eight field laborEight field labor Eight field laborEight field laborSixteen field laborSixteen field labor

CHIEF SCIENTIST CHIEF SCIENTIST

Assistant Assistant lab boys lab boys





Employee payment scheduleEmployee payment schedule

Employee Designation Pay Scale

Chief Executive Officer 5 Lacs per Annum

Chief Operation Officer 3.5 Lacs per Annum

Chief Marketing Officer 3.5 Lacs per Annum

Chief financial Officer 3.5 Lacs per Annum

Marketing Executive 2.5 Lacs per Annum

Sales Manager 2 Lacs per Annum

Supervisor 1 Lac per Annum

Accountant 2 Lacs per Annum

Senior HR manager 2.5 Lacs per Annum

Junior HR manager 2 Lacs per Annum

Chief Scientist 3.5 Lacs per Annum

Junior scientist 2 Lacs per Annum

Labor 0.6 Lac per Annum

Employee Motivation :Bonus will be given to the brilliant performers.

Organization Culture:Transparency will be there within the organization.Unity of command will be their.

Health and safety:For each and every employee regular health checkup.Medical facility for the employees will be provided.

Employee retention policy:Promotional policy will be there for the good performers in each department.Career development opportunity will be given to the employees.

Human Resource Policies

CORPORATE SOCIAL RESPONSIBILITY

• HEALTH CONCIOUSNESS

• ECOFRIENDLY SYSTEM

• “BHOOMISEVA” PLANTATION PROGRAM

• FREE SOIL TESTING AND WATER TESTING FOR FARMERS

STRENGTHSTRENGTH

•GOOD QUALITY AND NEAR TO THE GOOD QUALITY AND NEAR TO THE MARKET.MARKET.•HEALTH CARE FERTILIZERS.HEALTH CARE FERTILIZERS.•STRONG SUPPLY CHAIN MANAGEMENT STRONG SUPPLY CHAIN MANAGEMENT •PRICE, VALUE TO THE CUSTOMERS AND PRICE, VALUE TO THE CUSTOMERS AND QUALITATIVE PRODUCTS.QUALITATIVE PRODUCTS.•NEW TECHNOLOGY INNOVATIVENESS IN NEW TECHNOLOGY INNOVATIVENESS IN PRODUCTION.PRODUCTION.

WEAKNESSWEAKNESS

•NEW IN THIS AREA.NEW IN THIS AREA.•FARMERS ARE NOT HABITUAL TO USE FARMERS ARE NOT HABITUAL TO USE ORGANIC FERTILIZERS.ORGANIC FERTILIZERS.•NO BRAND EQUITY AND IMAGENO BRAND EQUITY AND IMAGE

OPPORTUNITYOPPORTUNITY•LESS COMPITITIVE MARKET LESS COMPITITIVE MARKET •EASY AVAILABILITY OF RAW MATTRIAL.EASY AVAILABILITY OF RAW MATTRIAL.•NEW MARKETNEW MARKET•FUTURISTIC MOVE. FUTURISTIC MOVE. •HEALTH CONCIOUS HEALTH CONCIOUS •GOVERNMENT SUBSIDIESGOVERNMENT SUBSIDIES

THREATSTHREATS

•ENVIRONMENTAL EFFECT IS VERY HIGH.ENVIRONMENTAL EFFECT IS VERY HIGH.•LACK OF SKILLED WORKERS IN THIS LACK OF SKILLED WORKERS IN THIS AREA.AREA.•FARMERS DEMAND IS TO GIVE QUICK FARMERS DEMAND IS TO GIVE QUICK RESULTS.RESULTS.

SWOT ANALYSIS

MARKETING STRATEGYMARKETING STRATEGY

PRE EXECUTIONPRE EXECUTIONMARKETINGMARKETING

POST EXECUTIONPOST EXECUTIONMARKETINGMARKETING

PRE EXECUTIONPRE EXECUTION

•AREA IDENTIFICATIONAREA IDENTIFICATION

•MASS MASS CAMPAINING CAMPAINING

•VILLAGE MEETINGVILLAGE MEETING

•TARGETING OF POTENTIAL FARMERTARGETING OF POTENTIAL FARMER

POST EXECUTIONPOST EXECUTION

•MASS CAMPAINING

•PUBLICITY

•MEGA FARMER MEETING

•PRODUCT DISPLAY

•DEMONSTRATION

PUBLICITY

Literature distributionLiterature distribution

Wall paintingWall painting

Shop paintingShop painting

Farming equipment paintingFarming equipment painting

Press news coveragePress news coverage

Print mediaPrint media

Local radioLocal radio

Demonstration

Result demonstrationResult demonstration

Crop specific demonstrationCrop specific demonstration

Result group demonstration Result group demonstration

GURDASPURAMRITSAR

HOSIYARPUR

KAPURTHALAJALANDHAR

NAWANSHAHAR

FIROZPURFRIDKOT

MOGAMUKTSAR

LUDHIYANABATHINDASANGRUR

FATEHABADPATIALARUPNAGARMANSA

MARKETING EXECUTIVE 1





BRANDING & positioning

• As “Bhoomi Seva, Kishan Seva”.As “Bhoomi Seva, Kishan Seva”.

• Emotional attachment with farmersEmotional attachment with farmers

• Health conscious productHealth conscious product

Finance DepartmentFinance Department

MISCELLANEOUS CALCULATIONSMISCELLANEOUS CALCULATIONS

Item NameItem Name Sale Price/unitSale Price/unit(QUENTAL)(QUENTAL)

QuantityQuantityDemandedDemanded(annually)(annually)(QUENTALS)(QUENTALS)

Total Sale ValueTotal Sale Value( Rs.)( Rs.)

BHOOMIPUTRA BHOOMIPUTRA VERMICOMPOST VERMICOMPOST DIAMONDDIAMOND

500500 6000060000 3 CRORES3 CRORES

TOTAL SALESTOTAL SALES 3 CRORES3 CRORES

1) TOTAL SALES REVENUE:

2) COST OF RAW MATERIAL (in lac)

CAPACITY OF 1 BAG OF VERMI FERTILIZERS = 100 kg No. OF BAGS = 60000 COW-DUNG (INCLUDING TRANSPORTATION) = 50 * 60000 = Rs 30 LACS SPECIAL HARMONES = 30 * 60000 = Rs 18 LACSTOTAL RAW MATERIAL COST = Rs 48 LACS

3) WAGES AND SALARY (in Lacs)LABOUR COST = Rs 24SALARIE = Rs 116.2WAGES = Rs 13.5

•SELLING & DISTRIBUTION EXPENSES:SELLING & DISTRIBUTION EXPENSES: = RS24 = RS24

•CSR FUND = RS 5CSR FUND = RS 5

•PRE EXECUTION MARKETINGPRE EXECUTION MARKETING ( (PROMOTION)PROMOTION) =RS 25 =RS 25

•PROMOTION EXP. = RS 20PROMOTION EXP. = RS 20

•ELECTRICITY CHARGESELECTRICITY CHARGES = RS 2 = RS 2

•ESTABLISHMENT COSTESTABLISHMENT COST = RS 15 = RS 15

•PACKAGING COSTPACKAGING COST 2% OF SALE = RS 6 2% OF SALE = RS 6

(Rs In Lacs)(Rs In Lacs)

12) DEPRECIATION ON FIXED ASSETS: (Rs In Lac)

PARTICULARSPARTICULARS

RATERATE OF OF DEP.DEP.

INVINV DEPDEPAFTERAFTERIst yearIst year

W.D.VW.D.V DEPDEPAFTERAFTER22ndnd year year

W.D.VW.D.V

LANDLAND ------ 99 ---------- 99 ------ 99

EARTH WARMEARTH WARM -------- 11 -------- 11 ------ 11

R&DR&D -------- 1010 ------ 1010 ------ 1010

FURNITURE & FIXTUREFURNITURE & FIXTURE 10%10% 22 .2.2 1.81.8 .2.2 1.61.6

PLANT AND BUILDING PLANT AND BUILDING

10%10% 2525 2.52.5 22.522.5 2.52.5 2020

MACHINERYMACHINERY 10%10% 5500 55 4545 55 4040

OTHER FIX ASSETOTHER FIX ASSET(IT EWUIPMENTS)(IT EWUIPMENTS)

10%10% 33 .3.3 2.72.7 .3.3 2.42.4

TOTALTOTAL 100100 88 9292 88 8484

(Note: Depreciation is charged @ 10% on Straight Line method. All figures are in Lacs)(Note: Depreciation is charged @ 10% on Straight Line method. All figures are in Lacs)

8) Financial cost: (Rs In Lacs)

S. No.S. No.ParticularsParticulars 11stst Year Year 22ndnd Year Year

0101 Interest on Long Term Interest on Long Term LoanLoan 2.772.77 2.382.38

0202 Interest on Working Interest on Working Capital Capital 1.751.75

1.751.75

TOTALTOTAL

4.524.52

4.14.1

Loan is taken from NABARD, which is providing us loan at the rate of 7.5% for Loan is taken from NABARD, which is providing us loan at the rate of 7.5% for Organic Farming.Organic Farming.

WORKING CAPITAL REQUIREMENT STATEMENT:- (RS In Lacs)

S. No.S. No. ParticularsParticulars % of % of margimarginn

Holding PeriodHolding Period Total Total Amt. Amt. Invest.Invest.

Max per Max per finance finance by Bank by Bank (75%)(75%)

Own Own Fund Fund (25%)(25%)

AA Current AssetCurrent Asset1.1.STOCKSTOCK-Raw MaterialRaw Material-Work In ProcessWork In Process-Finished GoodsFinished Goods1.1.DebtorsDebtors

2525252525252525

1/21/2 month of month of purchasepurchase¼ month of sales¼ month of sales½ month of sales½ month of sales1 month of sales1 month of sales

226.256.25

12.5012.502525

1.41.44.374.378.758.7517.517.5

1.61.61.881.883.753.75

7.57.5

TOTALTOTAL 45.7545.75 32.0232.02 13.7313.73

BB Current LiabilitiesCurrent LiabilitiesCreditorsCreditors

1 month of purchase1 month of purchase 12.5012.50 8.758.75 3.753.75

TOTALTOTAL 12.5012.50 8.758.75 3.753.75

NET WORKING CAPITAL (A-B)NET WORKING CAPITAL (A-B) 33.2533.25 23.2723.27 9.989.98

)

COST OF PROJECT:- (Rs In Lacs)

INVEST IN FIXED ASSETSINVEST IN FIXED ASSETS-LAND-------------------------- 9 LAND-------------------------- 9 -PLANT AND BUILDING-------- 25PLANT AND BUILDING-------- 25-MACHINERY----------------------- 50MACHINERY----------------------- 50-FURNITURE & FIXTURE-------------- 2FURNITURE & FIXTURE-------------- 2-IT EQUIPMENT----------- 3IT EQUIPMENT----------- 3-R&D ---------------------------- 10R&D ---------------------------- 10-EARTH WORM 1EARTH WORM 1

100100

INVEST IN WORKING CAPITALINVEST IN WORKING CAPITAL 33.2533.25

INVEST IN PRELIMINARY EXPENCESINVEST IN PRELIMINARY EXPENCES 4040

TOTALTOTAL 185.75185.75

MEANS OF FINANCE

LOAN FROM BANK:

(RS In Lac)

LONG TERM LOAN 37

WORKING CAPITAL LOAN 23.27

OWN INVESTMENT: 79.98

SUBSITY 33

TOTAL 185.75

LOAN RE-PAYMENT SCHEDULE:-:---(RS In Lac)

YEAR

AMOUNT

INTEREST @7.5% pa

INSTALLMENT PAID

1 OPENING 37 2.8 5.28

CLOSING 31.72

2 OPENING

31.72 2.38 5.28

CLOSING 26.44

3 OPENING 26.44 1.98 5.28

CLOSING 21.16

PROJECTED PROFITABILITY STATEMENT:---(Rs In Lac)PARTICULARS 1st Year 2nd Year

INCOME

SALES 300 330

TOTAL 300 330

OPERATING EXPENCES:

RAW MATERIAL 48 52.8

WAGES 13.5 13.5

LABOUR 24 24

TOTAL 85.5 90.3

OPERTING PROFIT 204.5 209.5

SALARY 116.2 116.2

ELECTRICITY 2 2

ESTABLISHMENT COST &PRE. EXECUTION (WRITTEN OFF)

8 8

PACKAGING 6 6.6

SALES AND DIS. EXP. 24 24

PROMOTION EXP. 20 15

INTEREST 4.52 4.1

DEP. 8 8

TOTAL 193.72 188.9

PROFIT 20.78 50.8

PROJECTED FUND FLOW STATEMENT

PARTICULARSPARTICULARS 11stst Year Year 22ndnd Year Year

SOURCE OF FUND:SOURCE OF FUND:

OPENING BALANCEOPENING BALANCE ---- 31.531.5

LOAN FROM BANK:LOAN FROM BANK:

LONG TERM LOANLONG TERM LOAN 3737 ----------------

WORKING CAPITAL LOANWORKING CAPITAL LOAN 23.2723.27 ------------------

SUPPORT FROM CREDITORSSUPPORT FROM CREDITORS 12-5012-50 --------------

SUBSITYSUBSITY 3333

OWN INVESTMENTOWN INVESTMENT 79.9879.98 ----------------

FUNDS FROM OPERATIONFUNDS FROM OPERATION

PROFIT AFTER TAXPROFIT AFTER TAX 20.7820.78 50.850.8

DEPRECIATIONDEPRECIATION 88 88

PRELIMINARY EXPENCESPRELIMINARY EXPENCES 88 88

TOTALTOTAL 222222.05.05 98.398.3

APPLICATION OF FUND

INVESTMENT IN FIXED ASSETS 100

-------

INVESTMENT IN WORKING CAPITAL

45.75 --------

INVESTMENT IN PRELIMINARY EXPENCES

40 -------

LOAN REPAYMENT 5.28

5.28

TOTAL 191.03 5.28

CASH 31.5 93.02

PARTCULARS 1st Year 2nd Year

1: LIABILITY

OWN FUND 112.98 112.98

GENERAL RESERVE 20.78 71.58

LONG TERM LOAN 31.72 26.44

SUNDRY CREDITOR 12.5 12.5

WORKING CAPITAL LOAN 23.27 23.27

TOTAL 201.25 246.77

PROJECTED BALANCE SHEET :---(Rs In Lac)

2:APPLICATION OF FUND (RS In Lac) (RS In Lac)

FIXED ASSETS (NET BLOCK) 92 84

CURRENT ASSETS:

STOCK & DEBTOR 45.75

45.75

CASH 31.5 93.02

3:MISCELLANEOUS EXPENDITURE:

PRELIMINARY EXPENCES 32 24

TOTAL 201.25 246.77

RATIO 1ST YEAR 2ND YEAR

DEBT EQUITY

RATIO .28 .23

NET PROFIT RATIO 6.9% 15.39%

DEBT SERVICE COVERAGE RATIO

2.93 6.94

CURRENT RATIO 6.18 11.10

Important ratios

ReferencesReferences

Verma TS, Sharma RP, and Sanjay Kr Sharma, Verma TS, Sharma RP, and Sanjay Kr Sharma, 2006. “Organic farming in Indian perspective”2006. “Organic farming in Indian perspective”

Atul and Pratap, Tej 2004. “Organic agriculture- Atul and Pratap, Tej 2004. “Organic agriculture- national standards and farmers innovations”national standards and farmers innovations”

Sarkar AK, and Sharma SP, 2006. “Management Sarkar AK, and Sharma SP, 2006. “Management of acidic soils- current issues and policy of acidic soils- current issues and policy guidelines.”guidelines.”

Singh GP and Singh Jitender, 2007. “Organic Singh GP and Singh Jitender, 2007. “Organic farming in India”.farming in India”.

Subhash Sharma 2005, “Three roads to Subhash Sharma 2005, “Three roads to development of Indian agriculture.” development of Indian agriculture.”

Mehra Madhav, 2006. “A new concept for Mehra Madhav, 2006. “A new concept for environmental management”. environmental management”.

Education

Biofertilizer Business Plan