PROJECT REPORT

ON

JEEVARMRUTHAM

Works:
SY NO 85, ADJ TO MADDIKONDA VILLAGE,
ASWARAOPETA MANDAL,
BHADRADRI KOTHAGUDEM DIST.
 THE PROJECT AT A GLANCE:

1. Name of the firm. : MADDUKURI NARAYANA RAO

2. Works. : Sy No: 85, Maddikonda (V) &

(M), Bhadradri Kothagudem Dist.

3. Name of the promoter. : SRI MADDUKURI NARAYANA

RAO

4. Constitution. : Proprietor

5. Sector. : Micro.

6. Line of activity. : Manufacture of

Bio Organic Product

7. Installed capacity. : 3900 Liters/annum

8. Project cost & Means of Finance:
(Rs. in lacs)

Project Cost Amount Means of Finance Amount

Land OWN Capital 7.80
Buildings 8.65
Animals 5.00
Machinery 4.15 Term loan 10.00
Total 17.80 Total 17.80

Promoter contribution: 43.20%

 Introduction

India is striding ahead to face the gigantic triple challenges of

sustainable increased agriculture productivity, environmental
sustainability and poverty alleviation which are further aggravated by
climate charge, global competition and rapidly advancing technologies.
In order to meet these challenges, research and extension systems
have to be structured and the client system has to be organized.

Andhra Pradesh is India`s one of the largest states with about 60-
70 percent of population engaged in Agriculture comprising of 80
percent small and marginal farmers. The productivity and production
from various crops is very low. Farmers are not able to organize
themselves to get access to credit and marketing the research,
extension and farmer linkages are also relatively week. The agricultural
development depends on development on appropriate technologies
which has to be decided by technology management system
comprising of all the stakeholders namely; research, extension,
farmers, markets etc.,
The current system of extension is based on the linear transfer of
technology model which need to be made more response to the local
situation and community needs. Therefore the shift should focus on
providing integrated range of services and to make the grass root
workers work more on the location specific problems and be
accountable to the community. The new approach also calls for
organizing farmers into commodity interest groups / farmers interest
groups and federations so that these institutions become the platforms
to deliver the integrated range of services from production to
marketing. The above interventions calls for preparing plans from the
village level with convergence and in a participatory manner involving
all stakeholders.

SCOPE OF THE PROJECT

The Project envisages setting up of a unit for the manufacture of Bio

Organic Product unit at Sy No 85, Maddikonda Village & Mandal, Bhadradri
Kothagudem Dist. He total cost of the Project at Rs. 17.80 lacs. The
installed capacity of the unit is 3900 Litres. on 300 days working on 8
hrs /day. The operating capacity of the unit is assuming 60%, 70%, 80%. In
the first three consecutive years.

Background of the Promoter

Mr. M Narayana Rao S/o Sri Vasudeva Rao aged 46 years residing at 2-
66/1, Beside Govt. School, Maddikonda, Malkaram, Khammam .He passed
Graduate. He is an income tax assesse. He had a vast experience in this
line of activity. He is the sole proprietor of the unit.
 CONSTITUTION & SECTOR:

The proposed unit by name and style .A Proprietor concern, the

main object of the unit is to manufacture of Bio Organic Product. The unit
comes under Micro Sector

PROCESS OF MANUFACTURE

Preparation
Mix all the ingredients in one storage tank, till all the solids are
mixed well in the water
Cover the drum and store in a dry place for 48 hours in room
temperature (above 12 Centigrade) or 96 hours if the temperature
in below 12 degree Centigrade
Mix the mixture well in clock wise direction for about 1 minute
regularly once in early morning and evening
Dosage and Usage:
200 Liters of Jeevamrutham per acre can be used once or twice in
every month*** for all kinds of crops
It improves the crop health by bring back the fertility to soil which
was lost due to use of chemical pesticides
It improves the resistance power of the crop

RAW MATERIALS
The required raw materials are Cow urine, Cow Dung, Jaggery,
Bengal gram Flour, Antil Soil. This is abundantly available in the
surrounding areas and there is no shortage of Raw material in the local
market.
 MARKETING

The end product i.e. Jeevamrutham is a agriculture organic pesticide

and has good market potential as the agriculture sector who are interested
in organic farming are solely dependent upon this product for their need. It
can be exported to many place where there are agricultural fields. Since,
this is the artificual age there is organci growth for agriculture in every
nook and corner of the world. Our proposed unit will cater to the needs of
the farmers in the neighboring tow districts of Andhra Pradesh. In which
the unit is proposed to be established. The main consumers of this product
are farmers

LOCATION AND ADVANTAGES

Land: The proposed location of the unit is situated at

Sy No 85, Maddikonda Village & Mandal, Bhadradri Kothagudem Dist. The
site is located centrally notified backward area. The location of the
industry has considerable influence on the techno- economical facility of
the project. There are various factors contributing the functioning of an
industry and following are the primary factors taken into consideration.

Reasons for Selection of the Site:

Adequate Raw Materials
Adequate labor at economical rate.
Adequate supply of water throughout the year.
The site is well connected with road facility.
Banking facilities and Government supports.
Adequate Transport facilities for economical transportation of
finished product and spare parts.
Nearest to the market

PROJECT COST AND MEANS OF FINANCE

Project Cost Amount Means of Finance Amount
Land OWN Capital 7.80
Buildings 8.65
Plant & Machinery 4.15 Term loan 10.00
Animals 5.00
Total 17.80 Total 17.80
DETAILED NOTES ON PROJECT COST

Land: The promoter has taken the land at Sy No 85, Maddikonda

Village & Mandal, Bhadradri Kothagudem Dist
The proposed location is very ideal for the proposed unit.
Buildings : The promoter is going to construct the civil construction
worth of Rs. 8.65 Lacs are following:

S. No Description Amount

1 Shed for 10 Cows 3,20,390.00

2 Platforms 50,180.00

3 Water Storage Tank for Drinking Purpose 35,000.00

for Cows

4 50 Feet Cow Urine Collectable Tank 3,50,000.00

5 Land Development & Electricals 1,10,000.00

Total 8,65,570.00

Machinery: All the machinery is available and delivery time in one

month.

List of the Machinery:

S.No Type of Machine Rate
1. Chaff Cutter 1,05,000.00
2. Dumping Machine 40,000.00
3. Transport Tank 2,35,000.00
4. Misc. 35,000.00
Total 4,15,000.00

Animals: The unit requires 10 Cows each cost Rs. 50,000 Total Rs.5.00 Lacs

DETAILED NOTES ON MEANS OF FINANCE

CAPITAL: The proposed capital is Rs. 7.80 Lacs

TERM LOAN: The Proprietor desire to avail term loan from Bank. The term
loan required is 10.00 lacs. The term loan will be paid in 28 quaterly
installments with moratorium period of 12months

UTILITIES AND SERVICES

POWER: The Unit requires 10 HP power under LT connection

Employment: The unit will employ 5 persons and will recruit locally

Water: Only domestic water is requiring for drinking and sanitation bore
well is provided in the scheme.

Pollution: Pollution free industry. No approval is required.

SWOT ANALYSIS

(A) Strength:

1) The unit is proposed at Sy No 85, Maddikonda Village & Mandal,

Bhadradri Kothagudem Dist
2) The Promoters have studied and got knowledge in manufacturing of
product and its marketing.
4) Availability of Labour.
5) Availability of raw material

B) Weakness:
The Unit has to compete with the existing units. However, being on of its
kind and having good market potential they can compete with them. The
Unit is one of its kinds in the area where the market potential as well as
raw material is substantial.

(C) Threats:
The proposed unit is a new unit local market. In balance, there is
adequate market share for the unit in view of the demand supply gap.
The unit would be in a position to counter in the threats if any, because
of Government encouragement in and also being a small-scale industry.
ASSUMPTIONS FOR PROFITABILITY STATEMENT
Installed Capacity : 200 Litres / day
No. of Working Days : 300 days.
2000X300 = 600000 Liters.
OPERATING CAPACITY IS ASSUMED AS UNDER
Year 1st Year 2nd Year 3rd Year
Utilization 60% 70% 80%
Production (tons) 360000 420000 480000
COST OF RAW MATERIALS REQUIRMENT: (per annum)
cost of raw material
S. Description Qty/ Kgs Unit Price Amount
No
1 Black Jaggery 3600 239.00 860400.00
2 Bengal Gram 3600 51.00 183600.00
Total 1044000.00

Power charges are estimated as under Contracted load:

Energy charges: 10 HPx 24x300x0.745x0.8x0.60x6.50 = 167356.80
Say 1.67
Wages are calculated as under
Skilled workers = 3x4, 000 = Rs.12, 000
Unskilled workers = 1x3, 500 = Rs. 3, 500
-------------
15, 500x12
= 1,86, 000/-

SALES: 360000X 6 = 21,60,000.00

Depreciation :- Depreciation was been calculated on written down value

method
Buildings = 10%
Plant & machinery 25%
Interest :- Interest has been calculated as per effective rate
Term Loan : 14.50%
Working Capital : 14.00%