Udyog Farming Agency

Presented by:Akash Shah (SY) Nikhil Begani (FY) Chandraprakash Agrawal (FY)

Navnirman Institute Of Management (surat)

02/03/20120

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 as intermediary & provide the best quality facilities to farmers with guidance.
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Purpose of Business
To provide all type of equipments & facilities of agriculture including(labors, harvesting, tractors & all other needed machines). Farmers are provided relief through insurance on their Farm as per their 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 them develop their own techniques. Special crops farming facilities are available i.e Potato, tomato,fruits etc. Water facilities through digging well or pumps are also available.
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Need of business
About Indian Agriculture Contributes to 24% of GDP Provides food to 1Billion people Sustains 65% of the population : helps alleviate poverty Produces 51 major Crops Provides Raw Material to Industries Contributes to 1/6th of the export earnings

One of the 12 Bio-diversity centers in the world with over 46,000 species of plants .

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Navnirman Institute Of Management

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.
6/5/2012 Navnirman Institute Of Management

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Navnirman Institute Of Management

Indian Agriculture- Some Facts

Total Geographical Area - 328 million hectares Net Area sown - 142 million hectares Gross Cropped Area 190.8 million hectares Major Crop Production (1999-2000) 13 R yu

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Navnirman Institute Of Management

Market Analysis
Situational Analysis.
As it is the very beginning of business as a start-up company. Market analysis is favorable towards farming services business in the UttarPradesh 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 of the 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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Navnirman Institute Of Management

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 Uttar Pradesh. 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

SWOT Analysis
The 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. 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 No competition in the market. Increase in sales opportunities as farmers are more worried for farming. Government competition & interference.

Weaknesses:

Opportunities:

Threat

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Navnirman Institute Of Management

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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Navnirman Institute Of Management

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 per terms 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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Navnirman Institute Of Management

Financial projections
Financial Objectives
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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Navnirman Institute Of Management

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 lakhs Trailer 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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Navnirman Institute Of Management

PROFIT ASSUMPTION

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

2-3%

4-5%

7-8%

10%

10%

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Navnirman Institute Of Management

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Navnirman Institute Of Management