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Udyog Farming

Agency

Presented by:-

Akash Shah (SY)Nikhil Begani (FY)

Chandraprakash Agrawal (FY)

Navnirman Institute Of Management (surat)

02/03/20120

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Company overview

Mission statement

To be The Best farming Service agency in the country

with best technology & large farmer segments.

Location- Uttar Pradesh

Capital Size- Approx. 2-3 crores in Rs.

Market Indian farmers

Products & Services- All agriculture Equipment's, seeds,

fertilizers & Consultancy services.

Objectives

To achieve the market of services in agricultural sector asintermediary & provide the best quality facilities to farmerswith guidance.

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Purpose of Business

To provide all type of equipments & facilities of agricultureincluding(labors, harvesting, tractors & all other needed machines).

Farmers are provided relief through insurance on their Farm as pertheir permission. We act as intermediary between insurance company

& farmers. Budgets for farmers are prepared as per their length of land.

Facilities of providing different types of seeds as per their demand.

Facilities of fertilizer including Chemical & natural both.

Education facilities of farming techniques to farmers which help themdevelop their own techniques.

Special crops farming facilities are available i.e Potato, tomato,fruitsetc.

Water facilities through digging well or pumps are also available.

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Need of business

Causes for Low Productivity of Indian Agriculture

1. General Factors

(a) Overcrowding in Agriculture.

(b) Discouraging Rural Atmosphere

(c) Inadequate non-firm Services

(d) Natural Calamities

2. Institutional Factors(a) Size of Holding

(b) Pattern of Land Tenure

3. Technological Factors(a) Poor Technique of Production.

(b) (b) Inadequate Irrigational Facilities.

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Indian Agriculture- Some Facts Total Geographical Area - 328 million hectares

Net Area sown - 142 million hectares

Gross Cropped Area190.8 million hectares Major Crop Production (1999-2000)

13

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Market Analysis

Situational Analysis.

As it is the very beginning of business as a start-up company. Marketanalysis is favorable towards farming services business in the Uttar-

Pradesh

According to Indian agriculture survey there is need of such farming

facilities & services in states like U.P & Bihar the overall market is

expected to grow by a total of 35% in next coming years because ofthe technological equipments.

Market Summary

As because of the less technical facilities in farming & due to contract

farming by some big companies like PepsiCo ,HUL etc

farmers are not getting a handsome return of their hard work &investment.

Instead of investing on other sources of farming farmers are getting

advantage from our agency.

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Market Demographics

The Udyog farming agency consist of the following Geographic,

Demographic and behavior factors: Geographic:

The immediate geographic target is the approx 78% of population of

Uttar- Pradesh i.e. 8-10 million farmers surrounding communities with

a total population of 2.5 crores.

Total targeted population is 90% of agriculture farmers in UttarPradesh.

Demographics:

Farmers , vegetable market vendors etc.

There is age between 22 & above.

Behavior Factor:

There are officers to provide the best information about farming

facilities to the farmers with their need of budget and demand. We try

to lookout all the factors of service and attempt all off the needs to the

farmers.6/5/2012 Navnirman Institute Of Management

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SWOT AnalysisThe following SWOT analysis captures the key strength & weakness within the company,

and describe the opportunities facing by Udyog farming services

Strengths: Wide Variety of facilities of equipments.

Prices with proper budget planning.

More services with consultancy of increase in quality of crops.

Well trained employees for operations.

Weaknesses: As the new entrants to the market, so it is difficult to built the brand name in the

market.

Large Cost associated with start-up business

Opportunities:

No competition in the market.

Increase in sales opportunities as farmers are more worried for farming.

Threat

Government competition & interference.

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MARKET AREA

Best opportunity in these location of U.P.

District Allahabad & Varanasi. Villages 220 in these district.

Availability of fertilizers, equipments labors etc.

MARKETING SYSTEM: -Private

Promotions

Free farming education seminars in different village.

Hoardings.

T.V Ads on Dordarshan & other local channels.

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Pricing On basis of target i.e. farmers per hectare land.

Budgets are prepared as per need of facilities in certain crop.

Special crop priced as per facilities basis & need of services as perterms of farmers.

Profits are available through equipments rent & consultancy provided.

Insurance as per farmers need & commission as intermediary between

them.

Operation cost. Staffing cost monthly salary & wages to labors.

Fuels in machines.- operation basis. Servicing of machines- Monthly basis.

Quality control cost- monthly basis.

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Financial projections

Grow the profit margin by 5-10% per year

Increase the new services to gain huge market by 15-16% per year.

Capital sources Personal capital

Friends & Relatives

Bank Loans

Financial institutions

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Financial Assumptions 1.5 croes in Rs.(including all fixed & variable cost)

Tractors- 4 cost 20 lakhs

Thresher- 3 cost- 15 lakhs

Harvester- 3 cost- 15 lakhs

Weeding m/c -3 cost 10 lakhs

Plough m/c 3 cost 10 lakhsTrailer 2 cost 6 lakhs

Improved seeds 5 tonnes cost- 20 lakhs

Building & furniture cost- 30 lakhs

Pumps - 5 cost 4 lakhs

Advertisement & promotions cost -10 lakhs

Staff salary & wages cost- 10 lakhs.

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PROFIT ASSUMPTION

6/5/2012

2012-13 2013-14 2014-15 2015-16 2016-17

2-3% 4-5% 7-8% 10% 10%

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