Olive Olive Industrial Farming

transcript

OM Agriculture Ltd

BUSINESS PLAN PRESENTATION

OLIVE OIL FARMING

Presented by

Mayur Surani

Business GoalCREATE NICHE MARKET IN OLIVE OIL BUSINESS IN INDIA

CATER DEMAND OF INDIA'S OLIVE FRUITS

CREATE HEALTH AWARENESS

LEADER IN OLIVE OIL SUPPLIER IN INDIA

EXPANDING BUSINESS IN PAN INDIA

Mission Statement

CREATING SUSTAINABLE PRODUCTION OF AGRICULTURAL PRODUCTS AND

DELIVERING VALUE TO CUSTOMERS

Product : Olive Oil

1/13/2016 Mayur Surani 3

USAGE OF OLIVE OIL

Medicine Food Industries

Hair Care Products Additives

Fairness Products

Business Objectives

OBJECTIVES

Assured Return on Investment

Carefully Maintenance till 4-5 years

Capturing 50% market share in Gujarat

Steady Long term growth

Creating New Market

Coordination among staff

Market Summary

Indian Olive Oil Consumption 120 Tones

Production in India 2-30 Tones

Import Average 110

Production Growth rate 25%

Key Import Country Spain, Italy , Israel, Greece

Existing Market in India Rajasthan and Gujarat

Target Customers Oil Mills , Food corporation of India

Emerging market North and Pan India

Sources: www.rol.com

Industry Analysis

- Food Industry

- Healthcare Industry

- PPP farming in Rajasthan

- Unorganized Market

- Few Players

- Dependent on Import

Marketplace Analysis

-Emerging Market in India

-Sales territory : Guj, MHA, Raj, MH

-Growth rate :10% Annually

-Players: ROL and Local Farmers

-Issue : Oil Quality , Demand-

Supply

Customer Analysis

- Target customers: Oil Mills ,FCI

- Target Segment : Food Oil Industry

- Customer Types: Distributors

Competitor Analysis

- ROL Top Competitor

- Unorganized Farmers

- Price Sensitive

- Commodities Brand

- Virgin Oil Fruits

Market Research

Strategic PlanShort Term Consideration

- Cultivation in Bulk Quantities

- Distribute to Miller

- Extended Olive Fruits Brand

- Using distributers in Beginning

- Target: Hotel, healthcare Sector

Long Term Consideration

- Multiband Olive Commodities

- Unique brand Expansion

- Creating Social Awareness

Obtaining Product

- Virgin Brand Olive Oil

- Start up new Olive Oil facilities

- Creating New Facilities

- Factors affecting Business

Activities i.e.

Labor Expensive, Insurance,

Farming , Milling , Warehousing

Future Extension

- North West Front

- South West Front

Marketing ProductProduct strategy

- Multi-brand Olive Oil

- Whole Sale and Retails

- Push strategy

Price Strategy

- Cost of Production

- Net Profit Margin

- Different Price for WS and Retail

- Distributors Margin

Place Strategy

- Direct End Marketing

- Commission broker

- Multi- State Distribution

Promotional Strategy

- Marketing Message in Industry

- Social Media

- Agro-Trade Fairs

- Local Market Yards

Sales Forecast- Sales volumes and revenue V/s Sales Expenses

- Marketing Expenses

- Logistic Expenses

- Break Even for Production and Sale

- Variable Factors i.e Market Demand , weather , Production Capacity

Operations

- Operational Costs: Farming , Logistic, sales , Consult anting

- Workforce: Farm helpers, Consultant, Drivers for deliveries

- Worker safety , Pay Roll Waste Management, Compliance with States

- Publishing Open success Stories

Management

MANAGING DIRECTOR

AGROTECH MANAGER HR MANAGER

To coordinate with

Plan with HR

Manager

Get vital Business

Manage Contract

Labors

Manage Financial

Transactions and

Accounts

ACCOUNT MANAGER

OpportunitiesPROBLEMS OPPORTUNITIES

Selection of Agricultural Land First Mover Advantages

Irrigation System Penetrating Local Market

Certified Seeds Cost Efficient Production

Lack of Olive Crop Knowledge Availing Subsidiary on Seeds

Limited R&D Scope Very Strong ROI

Scattered Market

Lack of SCM

Unawareness of Market Yards

Business ConceptParticulars Remarks

Location South Gujarat : Valsad, Navsari, Kutch

Total Area 10 Hectares(100,000 sq.m² )

Land Acquisition Lease for 10 years

Auxiliary Expenses Seeds, Water ,Technological Equipment ,

Electricity , Security, Ware House,

Expected ROI Time 4 Years

Actual Area of Farming 8 Hectares

No of Olive Plants 250-300/ Hectares (Average 2250 Trees)

Average cost / tree 40

Aprox.Cost Rs.90,000

Partner country -Israel

Partner Company Rajasthan Olive Limited1/13/2016 Mayur Surani 13

Financial PlanFixed Cost Approximately Cost

Equipment Cost 30,000

Fertilizer cost 50,000

Land Leasing Cost* 3,80,000 for 10 years

Water irrigation cost 30, 000

Plant cost 70,000

5,60,000

VARIABLE COST Approximately Cost/ Year

Salary of Employees* 2,00,000

Labor Cost 10,000

Maintenance Cost 30,000

Administrative Cost* 70,000

Miscellaneous Cost + Surplus 30,000 + 2,00,000

3,40,000: + 2,00,0001/13/2016 Mayur Surani 14

Financial Plan

Land 8 hectares

Total Olive trees 2250

Average yield / Tree 30-50 kgs

Estimated cultivation 77,000 kgs

Life cycle of Olive Farm 45 -50 years

Average return / year after

4 -5 years

14-16 lakhs !!!!!!!!!!!!

Sources of Finance

Initial capital Needed : 4,00,000 4,00,000

Agricultural Loan Up to 5,00,000*

Investment Type Incremental

Subsidy on Special Crops* Up to 50,000*

Resource RequirementsResources Particulars

Workforces Semi-Skilled Labors

Technological Modern Farming Tools (On Lease)

Financial Personal Investment, Agricultural Loan,

Angel Investors

Distribution Coordination with Market Yards

Cultivating Land Horticulture Land

Commodities Future Price Auction*

i.e.: 1 kg of Olive Fruit = Rs. 50

2250*35*50= > 40,00,000!!!!

Risks and Rewards

RISK Remark

Weather Variable

Irrigation System Pre-Plan required

Crops Failure Insurance

Labor Shortage Manageable

Insurance Yes

Sales Using Effective Marketing Strategies

to Maximize

After 5 Years

2020 40,00,000

2021 40,00,000

Net Profit Margin Nearly 400% Annually

THANK YOU