BUSINESS PLAN

GROUP - 8

KAMAKHYA ARO-MEDIC LIMITED

NAME: KAMAKHYA ARO-MEDIC LIMITED.

ADDRESS: OFFICE: 17TH KANCHARI ROAD, FANCY BAZAAR,

OPPOSITE-BIG BAZAAR, GUWAHATI-2, ASSAM. TELEPHONE NUMBER: LAND- 0361-2223444. FAX- 2223442. MOBILE- 09864077713.

THE TEAM:PROMOTERS: SUMAN SANYAL, GOVIND SATISH,

ANTONY ISSAC, REX J. MANOOR, ASHA NAIR, MANJU K.S.

CEO: GOVIND SATISH. CFO: SUMAN SANYAL. COO: REX J. MANOOR. CMO: ANTONY ISSAC. HR: ASHA NAIR, MANJU K. S

TABLE OF CONTENTS MISSION & VISION STATEMENT BUSINESS DESCRIPTION MARKET SMMARY PRODUCTS BUSINESS OPPORTUNITIES COMPETITION OPERATING PROCEDURES RESOURCE EQUIPMENTS BUSINESS CONCEPT FINANCIAL DATA

MISSION & VISION STATEMENT

MISION STATEMENT: ENSURE GROWTH MAXIMIZATION BY

SATISFYING THE CLIENTS NEEDS THROUGH IMPROVING SERVICE PROVIDED.

VISION STATEMENT:• LEADING PARTNERSHIP BASED RELIABLE

PRODUCERS AND SUPPLY & VALUE CHAIN FROM FIRM TO FORK.

BUSINESS DESCRIPTION

FORM OF BUSINESS: PARTNERSHIP BUSINESS TYPE: SUPPLIER OF RAW MATERIALS

TO HERBAL & AGROTECH COMPANIES. PROFITABILITY: THIS BUSINESS WILL BE

PROFITABLE BECAUSE OF IMMENSE GROWTH OPPORTUNITIES.

PRODUCT: MEDICINAL & AROMATIC PLANTS.

MODE OF BUSINESS: INDEPENDENT BUSINESS.

MARKET SUMMARY AROMATIC AND MEDICINAL PLANTS, ARE THE

PLANTS USE AS RAW MATERIALS FOR HERBAL AND SOME OF THE ALLOPATHEIC MEDICINE, THAT HAS A VAST DEMAND IN THE INDIAN MARKET AS WELL AS IN INTERNATIONAL MARKET.

THE ASSAM IS ACCOUNTED FOR 17% OF TOTAL MAP PRODUCTION IN INDIA.

THE KEY PLAYERS OF HERBAL AND AGROTECH FIRMS ARE MAINLY LOCATED IN AND AROUND ASSAM.

CONTD….

THERE IS A WIDE SCOPE OF MAP CULTIVATION IN ASSAM SPECIALLY IN THE “UPPER BRHMAPUTRA VALLEY” (SIBSAGAR, JORHAT, DIBRUGARH & TINSUKIA) DUE TO THE SUITABLE WEATHER CONDITION AND EASY AVAILABILITY OF SEEDS.

THE STATE GOVERNMENT PROVIDES SUBSIDY TO THE MANUFACTURERS & SUPPLIERS OF MAP.

MORE GOVERNMENT BENEFITS ARE THERE FOR EXPORTING THESE MAP’s.

UPPER BRAHMAPUTRA VALLEY

FACILITIES

• GOVERNMENT SUBSIDIES ARE THERE. (No tax for the first two year)

• TAX BENEFIT ON EXPORTING PRODUCTS.• INTERNATIONAL AIRPORT.• WELL CONNECTIVITY WITH OTHER PARTS OF

INDIA.• EASY AVAILABILITY OF SEEDS.• LOW PAID SKILLED WORKERS.

PRODUCTS

• CITRONELLA• SUGANDHAMANTRI• SARPAGANDHA• BRAHMI• PIPALI• VANILLA• HILIKA• LEMONGRASS

BUSINESS OPPORTUNITIES

THE GLOBAL MAP BUSINESS IS ESTIMATED TO BE $ 95 BILLION (app) [W.H.O-2008].

AVERAGE ANNUAL FOREIGN TRADE FROM INDIA IS 60 TO 80 MILLION, WHICH IS ONLY 0.5% OF TOTAL WORLD TRADE.

THE DEMAND IS VERY HIGH IN INDIA( NORTH EASTERN STATES) AND AS WELL AS IN THE GLOBAL MARKET (SPECIALLY IN LATIN AMERICA, AFRICA, WESTERN EUROPE,SOUTH-EAST ASIA).

SUPPLY IS NOT ADEQUATE DUE TO THE LACK OF ORGANIZED SECTOR IN THIS FIELD.

COMPETITION• DIRECT COMPETITORS: 1. SOHOYOG ADDRESS: H.NO- 84, GMCH ROAD, DISPUR,

ASSAM-781005 Deals In: AROMATIC PLANTS

(ALLOVERRA,ASPARAGUS) & ECONOMIC IMPORTANCE PLANTS (STEVIA,PIPER LONGUM).

YEAR OF ESTABLISHMENT: 2004. TURNOVER: 4.3 CRORES (2008) ONLY IS DOMESTIC BUSINESS. NO EXPORT.

CONTD…. 2. RISSAB AGRICO ADDRESS: 202A GOLDEN HEIGHTS, SIPANI

BUILDING, CHATRIBARI, GUWAHATI- 781001 PH. NO.- +91-361-2510739 Deals In: MEDICINAL (PIPPALI, ARJUNA) &

AROMATIC (AGAR,VEPIBER) PLANTS. TURNOVER: 2.4 CRORE (2008). YEAR of ESTABLISHMENT: 2006.

CONTD….

3. ASSAM SMALL FARMERS AGRI BUSINESS CONSORTIUM (ASFAC)

ADDRESS: AGRICULTURE CAMPUS, KAHANA PARA, GUWAHATI, ASSAM.

PH. NO.- +91-361-2334240. Deals In: MEDICINAL & AROMATIC PLANTS. THIS FIRM ACTUALLY ACT AS MIDDLEMAN. THEY ARE IN EXPORT BUSINESS ALSO.

OPERATION PROCEDURE

MAIN PROCESSES IN MAP BUSINESS ARE: CULTIVATION OF PLANTS. (SEASON WISE) PROCESSED THE PARTS

(ROOT,LEAVES,FLOWER) AS PER REQUIREMENTS. WAREHOUSING. SUPPLY AS PER ORDER TO THE CLIENTS.

POTENTIAL CUSTOMERS• M/S EXPORTS & AGENCIES, WEST BENGAL

• AJMAL GROUP, ASSAM.

• M/S BRAHMAPUTRA VALLEY AROMATIC OIL INDUSTRIES

• HERBAL ARCADE, GUWAHATI.• ASSAM AGRO & PERFUMES.• SOPERIWALA EXPORTS,MUMBAI.• THERE ARE ALMOST 53 LOCAL KEY CLIENTS IN ASSAM

ITSELF.

RESOURCE EQUIPMENTS BUILDING STRUCTURE: 1 OFFICE BUILDING, 1

SALE COUNTER, 1 PACKING SHED, 1 IMPLEMENT SHED.

PROGENY BLOCK: TO MAINTAIN EXISTING SUPERIOR VARIETIES OF PLANTS.

PROPAGATION STRUCTURE: 5 GREEN HOUSE, 2 NET HOUSE, 2 POLY HOUSE.

SEED BEDS: 2 SEED BEDS. PACKING YARDS: 1 PACKING YARDS.

CONTD….

HR REQUIREMENT: 1 STORE MANAGER. (RS.4000pm) 1 MARKETING MANAGER. (Rs.6000pm) 10 LABORS.( 6 MEN, 4 WOMAN) (Rs.80/day) 1 SUPERVISOR. (Rs.4000pm) 1 DRIVER. (Rs.2000pm) 1 SECURITY GUARD. (Rs.1800pm)

CONTD….

EQUIPMENTS REQUIREMENTS: 1 TWO in ONE PROCESSOR MACHINE. POTS. 1 MATADOR.

BUSINESS CONCEPT

3 months are required to start cultivation of plants. After 7 months we can start selling a part of our product because some plant needs more time to be mature. After 3 years we can start full fledge sales activities of all of our products.

In the first 3 months we will give importance to make a customer base.

We will make a direct contact to the major domestic clients.

Maintaining a good rapport with the government to make the international clients base.

FINANCIAL DATA• INITIAL INVESTMENT: LAND ( 10 ACRES) ---------------- 19,80,000 ( 1 ACRE= 18 BIGHAS, 1BIGHA= Rs.11000)

MACHINERY-(1pc)--------------- 1,10,000 CONSTRUCTION ------------------ 2,30,000 ( BUILDING,NURSERY,FENCING)

REGISTRATION--------------------- 1,50,000 VEHICLE----------------------------- 75,000

CONTD….

OFFICE EQUIPMENTS--------------- 40,000 SEEDS ---------------------------------- 90,000 (ACTUAL PRICE IS 150,000- GOVT. DISCOUNT IS 40%)

TOTAL--------------------------- Rs. 26,75,000

BRAHMI

• The entire plant is used in indigenous system of medicine as a nerve tonic and cure for epilepsy and insanity. It is also being used as diuretic and for treating rheumatism, asthma,

and hoarseness• Brahmighrit, Sarasvatarisht, Brahmivati,

Modern medicines such as Mental, Memory plus and Megamind plus use Brahmi as their major component

HARVESTING• The best time for harvesting is between

October-November, (after 4-5 months of planting) during which the maximum biomass is produced.

• If planted in March the first cutting can be done in June and second cutting in September– October

• Yield- 300 q from two harvests

COST PER ACRE• Land preparation 2500• Planting material 5000• Cost of manures and fertilizers 4000• Irrigation 1250• Pesticides etc 500• Weeding 1250• Harvesting 3500• Drying and packing 2250 • Miscellaneous expenses 1250 Total 21000

VANILLA

• It is a spicy orchid valued for its cured fragrant beans, which makes one of the most expensive spices second only to saffron

Harvesting -The ideal time for planting vanilla is when the weather is neither too rainy nor too dry.

• Planting in April-June and Sept/October will give good result under our condition

• Harvesting takes 2 years• Cost of cultivation Rs 60000• Yield- 300 kg per year\acre

SUGANDHMANTRI

•Sugandhmantri is a rhizomatous aromatic perennial herb found in Assam•Its aromatic rhizomes contain an essential oil used for blending of perfume.•Sugandhmantri becomes ready for rhizome harvest on 3rd year of planting. However, the crop can also be harvested in the second year•It is harvested during winter rain free period(November-April).Yield – 130 q per acre

Economics of cultivation (32 months crop duration)/ha

Land preparation 25000Cost of Planting material 5250Transportation 500Preparation of seed material 750Furrow opening and Planting 1250Manures & Fertilizers + application 3000Mulching by rice husk (1-2 inch depth) 2500Intercultural operation 2500Total Rs. 40250

SARPAGANDHA

• Rauvolfia root or Serpentine root is one of the important crude drugs used in modern medicine

• The root bark, which constitutes 40-60% of the whole root, is rich in alkaloids known for

• their efficacy in reducing high blood pressure and as a sedative or tranquilizing agent

• HARVESTING - The marketable roots are generally collected 2 years after plantation

• Harvesting is done during june-july period• Yeild-1500 Kg Dry roots at 24 months\acre

COST PER ACRE• Economics of cultivation• 1. Cost of seed @ Rs. 2000 x 2.5 kg 5000• 2. Nursery raising 750• 3. Land preparation 3000• 4. Organic manure & application cost 5000• 5. Cost of transplanting 1250• 5. For Irrigation L.S 1000• 6. Weeding, hoeing and light earthing up 3000• 7. Plant protection 750• 8. Maintenance cost for 20 months 1250• 8. Harvesting & carrying, processing etc 4000• Total Rs 25 000

CITRONELLA

• Citronella oil is an essential oil containing citronellal, geraniol and hydroxy citronellol and other high value perfumery bases obtained on steam distillation of citronella grass

• 5-6 harvests can be taken per year at 2 months intervals

• Oil yield is around 150 kg/acre/year

PIPPALI

• Long pepper is an unripe spike of Piper longum Linn, a slender aromatic perennial climber belonging to the family Piperaceae

• The fruits possess haematinic, diuretic, digestive, general tonic properties, besides being useful in inflammation of the liver, pains in the joints, lumbago and night blindness.

• Harvesting - The first harvest from vines is possible after 6 months of planting

• During first year the dry spike yield is around 200 quintal and from 2nd year 500 QUINTAL

COST PER ACRE

Land preparation 2250Cost of rooted plants(50,000 Nos) 7500Cost of planting 2250Cost of Manures and fertilizers 4250Weeding, mulching 1250Plant protection 250Irrigation 750Harvesting 1875Total 20375

LEMONGRASS

• Lemongrass commonly known as “ East Indian Lemongrass” is a perennial and multicut aromatic grass.

• Lemongrass is the source of Lemongrass oil, a good source of natural citral, which is used as a basic raw material for synthesis of β-ionone used for synthesis of a number of useful aromatic compounds and Vitamin-A

• Citral is also used in perfumery for various grades of soaps detergents, cosmetics and flavour agent for soft

drinks

• Harvesting-First harvest is taken at 4 months age of the crop and subsequent harvests are at 2 – 3 months intervals

• Yield per year- 500 kg of oil

COST PER ACRELand preparation 750Manures and fertilizers 3000Planting materials 6250Intercultural operation 1250Irrigation 600Plant protection 250Harvesting 1000Distillation @ Rs. 300/ton 3225Misc. expenses 425Total 16750

COST PER ACRE• Land preparation 750• Planting material 20000 slips 6000• @ 0.3/slip• Manures-5 trolley FYM 1250• Fertilizers 2000• Weeding and irrigation 1750• Harvesting 1250• Cost of distillation (Rs. 500/ton) 2250• TOTAL 15000

PRICES

• BRAHMI------------------------ Rs.2000 per quintal• VANNILA------------------------- Rs.3000 per kg• SUGANDHAMANTRA--------- Rs. 3000 per kg • SARPAGANDHA---------------- Rs. 100 per kg• CITRONELLA------------------- Rs. 600 per kg• LEMON GRASS---------------- Rs. 350 per kg• PIPALI---------------------------- Rs. 7500 per qnt.

FINANCIAL STATEMENT1ST YEARCASH OUTFLOW: INITIAL INVESTMENT--------- 26,75,000 SALARY (41800*12)----------- 5,01,600 TOTAL COST FOR CULTIVATION--- 1,98,375 ELECTRICITY & OTHERS ---------- 30,000

TOTAL------------------------ 34,04,975

CONTD….

• CASH INFLOW: SALES---------------------------- ---- 17,92,500 TOTAL--------------------------------------- 17,92,500

THERE WILL BE A RESERVE OF Rs.100000.

CONTD….

2ND YEARCASH OUTFLOW SALARY------------------------------ 5,01,600. COST OF CULTIVATION---------- 1,68,375. ELECTRICITY & OTHERS--------- 30,000. MISCLLENEOUS EXPENCES----- 1,00,000

TOTAL--------------------------------- 7,99,975

CONTD….

• CASH INFLOW SALES----------------------------- 32,35,000

TOTAL-------------------------------- 32,35,000

SOURCES OF INFORMATION

• WWW.ASFAC.COM• NORTH EAST INDIA TRADE INVESTMENT SUMMIT• GOOGLE.• PERSONAL CONTACTS.