Executive Summary

The proposed Business Plan is of growing Medicinal plants and fulfilling various needs of industry and others. Sanjeevani Botanicals is a farm dedicated to the production of Medicinal Botanical perennials. It is working hard to become a leading producer of Medicinal plants for the natural supplement industry as well as plant nurseries.

It has identified three key areas that will be instrumental in their areas; the first is the implementation of strict financial controls. By having proper controls, production capacity can be maximized. Second will be never ending pursuit of the industry’s highest concentration levels of medicinal ingredient in each plant. The third key is the recognition and implementation of the philosophy that 100% customer satisfaction is required to ensure a profitable business. Profits are byproduct of satisfying customers not the other way round.

Sanjeevani Botanicals is a 10 acre farm that concentrates on growing botanical medicinal plants. It has chosen five plant species that have significant market demand and well suited for the growth in climatic conditions of Amravati. It will feature Asphodelaceae, Apocynaceae, Lamiaceae, Solanaceae, Liliaceae family species initially; the species will include Aloe Vera, Sarpagandha, Tulsi, Ashwagandha and Asparagas respectively.

I. Objectives

Sanjeevani Botanicals has identified several objectives for the business; Become a leading supplier of medicinal plants to health and vitamin industry. Reach the point of sustainable profitability. Enjoy work while making a good living.

II. Mission

It is Sanjeevani Botanicals mission to become the leading provider of medicinal botanical perennial to the health and vitamin industry. This will be accomplished by providing quality plants at fair prices while exceeding customer’s expectations.

III. Keys to Success

Sanjeevani Botanicals will adhere to three keys that will instrumental in its success: Strict Financial controls The never ending pursuit of the highest concentration of botanicals in every

plant. Ensuring that all customers' needs are met and they are satisfied with the

purchased products.

Company Summary

I. Company Name: Sanjeevani Botanicals

II. Type of Ownership: Private Limited Company -SoleProprietorship

III. Logo:

IV. Location:

Sanjeevani Botanicals is a farm based at Jaisinga in Amravati district in the state of Maharashtra, situated at 3 kms, from NH-6.

V. Area: 10 acre (4 hectares) of land. (1 acre = 43 560 square feet)

VI. Product:MEDICINAL PLANTS -Aloe Vera, Sarpagandha, Tulsi,

Ashwagandha and Asparagas

VII. Company History

The farm of Sanjeevani Botanicals has been in existence five years from now, initially used to grow traditional grains but now used for profit producing business. It is started by Mr. Santosh Sairise. Santosh is a Business Administration graduate with specialization in Operations Management. He also possess a background of Botany and Plant Physiology. Sanjeevani Botanicals is a dream project of Santosh which began with his intense passion and love for Plant Business. Sanjeevani Botanicals is a farm based at Jaisinga in Amravati district situated at 3 kms. from NH-6. It grows variety of botanical medicinal plants. The farm has been in existence five years from now, initially used to grow traditional grains but now used for profit producing business.

Sanjeevani Botanicals has chosen Jaisinga and Amravati district because of the climatic conditions and the soil that suits the best for growing botanical medicinal

plants. The soil here is made up of Basalt rocks which is entirely black. Also the water supply here is ample to provide good irrigation facilities to the plants.

VIII. Start Up Expenses

Buildings/Real Estate  

Construction 205000

Fencing 20000

Total Buildings/Real Estate 225000   

Capital Equipment List  

Furniture 30000

Computers 50000

Printer 8000

Software Development 200000

Generator 80000

Telephone 1000

Total Capital Equipment 369000   

Administration 1000

   

Advertising and Promotional Expenses  

Advertising 10000

Web page maintainence 100000

Printing (letterheads, brochures, visiting cards) 20000

Travel/Entertainment 2000

Other/additional categories 5000

Total Advertising/Promotional Expenses 137000   

Working capital 200000

Reserve for Contingencies 200000

Market

The marketing plan would help us to design a right path to start and proceed to achieve our short term purpose and long term goals , it will help us with basic guidelines ie for whom we are designing our product or service (market segmentation),And identifying those segments that are more potential and profitable to the business.And what that product or service should mean to those in the marketplace (Market Positioning).

I. Market Segmentation

Initially we would target local supplement companies and nurseries within a boundary. A network would be setup by the company using the existing records and databases of the heath and supplement companies.

Based on the geographies, initially we will focus on health supplement companies and plant nurseries. From the variables like location, ownership, type of the industry i.e. distributor,supplier or manufacturer we can have segments of customers. Based on which we can focus on each group of customers seperately.

Sanjeevani Botanicals has identified three main customer groups: Supplement companies, Botanical processors and other nurseries. The customer segments are distinct enough to be able to target each one differently. It will be able to serve the industry by leveraging their competitive edge of healthy and potent plants.

Health Supplement Companies, these customers group manufactures botanical supplement for their own label products. The companies purchase these plants and extract the active ingredients and transform them into sellable products for their own brand. There are many companies that operate in this market and Vitamin Industry needs active ingradients of medicinal plants to market and sell their products. As a raw material they are mostly depend upon Medicinal plants. Thus we serve as a supplier of medicinal plants to them.

Small plant nueseries procure plants to sell them directly. They usually sell saplings of the plants. Due to intense awareness related to health people nowadays prefer keeping medicinal plants rather than ornamental plants. Because of these reasons Plant nurseries also procure medicinal plant saplings which will be provided by us.

From second year we will have separate group of professionals who would focus only on Processor companies. These customers purchase the plants, extract the botanicals and either sell the concentrated botanicals to the end producers or they themselves produce the supplement and sell the end product to other companies for their private label products. These group of customers will provide us maximum sale hence, would focus on them separately.

II. Targeting

We recognized that some segments are not only different, but better than others for the product. As we are a startup company, we right now do not intend to serve all the segments of the market we would initially focused/target on Health and Supplement Companies and Plant Nurseries.

From second year we will have separate group of professionals who would focus only on Processor companies i.e. companies which imports medicinal plants process on them, extract active ingredients and sell them for the label of their own products or sell these active ingredients directly to the supplement companies. These group of customers will provide us maximum sale hence, would focus on them separately.

III. Market positioning

Positioning involves analyzing each market segment and developing a distinct value proposition for each segment. While there are many possible marketing positions, most would fit into one of the following category:

Value Proposition

a) Positioning on benefits

Strongly related to positioning on product features. We positioned on the

benefits that thecustomer gets by taking our products like the reasons,

Our product will go a long way in providing medicinal plants which are

important and which has value in the market at a cheaper rate.

Provides reliable back-up and accuracy.

Enables quality and disease free plants.

b) Product class association

This positioning is related to high class segment. Here the products will be

positioned as a quality symbol along with customer satisfaction.

IV. Product

Sanjeevani Botanicals is a 10 acre farm that concentrates on growing botanical medicinal plants. It has chosen five plant species that have significant market demand and well suited for the growth in climatic conditions of Amravati. It will feature Asphodelaceae, Apocynaceae, Lamiaceae, Solanaceae, Liliaceae family species initially; the species will include Aloe Vera, Sarpagandha, Tulsi, Ashwagandha and Asparagas respectively.

i. Aloe Vera

Common name: Aloe vera, Medicinal aloe, Burn plant

Hindi: Gheekumari

Marathi: Khorpad

Tamil: Kathalai

Malayalam: Chotthu kathalai

Botanical name:Aloe vera Family:Asphodelaceae (Aloe family)

Synonyms: Aloe barbadensis, Aloe indica, Aloe vulgaris

Aloe, a popular houseplant, has a long history as a multipurpose folk remedy.

Commonly known as Aloe vera, the plant can be snapped off and placed on cuts and

burns for immediate relief. Aloe vera is a clump forming succulent whose fleshy gray-

green leaves are arranged in a vase shaped rosette atop a very short stem.

The leaves are up to 18 in long and 2 in wide at the base, slightly grooved on

top, and terminating in a sharp point. The leaves have small grayish teeth on the

margins. The main rosette gets up to about 2 ft high, and the plant continually

produces little offset rosettes. In winter and spring, medicinal aloe bears small tubular

yellow flowers on branched stalks up to 3 ft tall. The real Aloe vera has yellow

flowers, but many of the clones available have orange flowers. Although Aloe Vera is

a member of the Lily family, it is very-cactus like in its characteristics.

Medicinal uses: Aloe Vera contains over 20 minerals, all of which are essential to the

human body. The human body requires 22 amino acids for good health -- eight of

which are called “essential” because the body cannot fabricate them. Aloe Vera

contains all of these eight essential amino acids, and 11 of the 14 “secondary” amino

acids.

Aloe Vera has Vitamins A, B1, B2, B6, B12, C and E. In India, Aloe vera is

believed to help in sustaining youth, due to its positive effects on the skin. Hence it is

called ghee kunvar or ghee kumaari.

ii. Sarpagandha

Common name: Indian Snakeroot, Insanity herb

Hindi: Sarpagandha

Botanical name:Rauvolfia serpentina Family:Apocynaceae (Oleander family)

Synonyms: Rauwolfia serpentina

Sarpagandha is a famous tranquilizer and antipsychotic herb of India for the

treatment of paranoia and schizophrenia, as well as a substance that controls

hypertension. Sarpagandha is an erect, evergreen shrub, merely 15 to 45 cm high. Its

leaves are large, in whorls of three - dark green above and pale green below.

The flowers are white, pinkish or red, occurring in whorls. Its fruit are tiny,

oval, fleshy which turn a shiny purple-black when ripe. It is the roots of the plant that

are mainly used for medicinal purposes.

Medicinal uses: Although this plant was well known in India, westerners paid no

attention to it until an Indian physician wrote an article on rauvolfia in 1943. Because

of the drug's noted sedative effects, it was used to treat over a million Indians in the

1940s for high blood pressure. After a U.S. physician named Wilkins demonstrated

the positive effects of reserpine (1952), the plant made front page news.

This drug rapidly replaces electric shock and lobotomy as treatments for certain

types of mental illness. Moreover, knowledge about the chemistry of this natural plant

stimulated the synthesis of other similar alkaloids that are now used as major

tranquilizers.

iii. Tulsi

Common name: Holy basil,

Hindi: Tulsi

Tamil: Tuzhasi

Telugu: Tulsi

Malayalam: Trittavu

Marathi: Tulshi

Botanical name:Ocimum sanctum Family:Lamiaceae (Mint family)

Tulsi (Ocimum sanctum) is a widely grown, sacred plant of India. Hindus grow Tulsi

as a religious plant in their homes, temples and their farms. They use Tulsi leaves in

routine worship. Tulsi, grown as a pot plant, is found in almost every traditional

Hindu house. The natural habitat of Tulsi varies from sea level to an altitude of 2000

m. It is found growing naturally in moist soil nearly all over the globe. Tulsi is a

branched, fragrant and erect herb having hair all over. It attains a height of about 75 to

90 cm when mature. Its leaves are nearly round and up to 5 cm long with the margin

being entire or toothed. These are aromatic because of the presence of a kind of

scented oil in them. A variety with green leaves is called Shri Tulsi and one with

reddish leaves is called Krishna Tulsi. Tulsi flowers are small having purple to

reddish color, present in small compact clusters on cylindrical spikes. The fruits are

small and the seeds yellow to reddish in color.

Medicinal uses: Because of its medicinal virtues, Tulsi is used in Ayurvedic

preparations for treating various ailments.

iv. Ashwagandha

Common name: Winter Cherry

Hindi: Ashwagandha, Rasbhari

Kannada: Kanchuki

Marathi: Ghoda, Tilli

Gujarati: Ghodaasun

Telugu: Vajigandha

Malayalam: Amukkuram

Tamil: Amukkuram

Botanical name:Withania somniferaFamily:Solanaceae (Potato family)

Ashwagandha, is native to drier parts of India. It is a perennial herb that

reaches about 6 feet in nature. In the greenhouse they flower in the late fall and

winter. Orange fruits in persistent papery calyxes follow the small greenish flowers.

Ashwagandha is propagated by division, cuttings or seed.

Seed is the best way to propagate them. Seed sown on moist sand will

germinate in 14-21 days at 20° C. A postal stamp was issued by the Indian Postal

Department to commemorate this flowers.

Medicinal uses: Ashwagandha has been a prized top notch adaptogenic tonic in India

for 3000 - 4000 years. The plants contain the alkaloids withanine and somniferine,

which are used to treat nervous disorders, intestinal infections and leprosy. All plant

parts are used including the roots, bark, leaves, fruit and seed.

v. Shatavari

Common name: Satawari, Wild Asparagus

Hindi: satawari, bojhidan, shatavir

Manipuri: Nunggarei

Marathi: Satavari-mul, Asvel

Tamil: Sadavari, Tannir-muttan-kizhangu, Kilavari

Malayalam: Chatavali, Satavali

Telugu: challa-gaddalu, challagadda, ettavaludutige

Kannada: aheruballi, ashadhi, halarru-makkal

Bengali: Satamuli, Satamul

Oriya: Vari

Urdu: Satawar, Shaqaqul misri

Assamese: Satomul

Sanskrit: Abhiru, Shatavari, Hiranyasringi

Mizo: Arkebawk

Botanical name:Asparagus racemosus Family:Liliaceae (Lily family)

Synonyms: Asparagus volubilis

Satawari is a woody climber growing to 1-2 m in height, with leaves like pine

needles, small and uniform and the flowers white, in small spikes. It contains

adventitious root system with tuberous roots. Stems are climbing, branched, up to 2

m; branches usually distinctly striate-ridged.

Leaves are just modified stems, called cladodes. Branches contain spines on

them. Inflorescences develope after cladodes, axillary, each a many-flowered raceme

or panicle 1-4 cm. Pedicel 1.5-3 mm, slender, articulate at middle. Flowers are white

with a pink tinge, 2-3 mm, bell-shaped with 6 petals. Stamens equal, ca. 0.7 mm;

anthers yellow, minute.

Within India, it is found growing wild in tropical and sub-tropical parts of

India including the Andamans; and ascending in the Himalayas up to an altitude of

1500 m.

Flowering:October-November

Medicinal uses: In Ayurvedic medicine, the root of Satavari is used in the form of

juice, paste, decoction and powder to treat intrinsic haemorrhage, diarrhoea, piles,

hoarseness of voice, cough, arthritis, poisoning, diseases of female genital tract,

erysipelas, fever, as aphrodisiac and as rejuvinative.

V. Price

The objective of pricing for the first year is survival and then to eventually

increase the market share. Pricing depends on the customer psychology and what they

perceive the price should be.

A penetrating pricing strategy is adopted by introducing our product at a low

price compared to our competitors initially to increase the customer base. After

analyzing the competitor’s offerings for the entire package the service would be

offered according to market demand compared to products offered by the competitors

so as to obtain a differentiation in pricing and move close to customers expectations.

We also adopt discount pricing strategy for bulk deals and for frequent

customers to encourage them to buy more. The pricing details are shown in the

financial plan of the company.

VI. Place

Right places are to be chosen to increase the visibility of the product as it

increases the awareness in potential customers. Location strategy: Initially targeting

Maharashtra region, later going to different states initializing in their key cities and

areas. Accessible office location in commercial area.

VII. Promotion and Marketing

i. Personally approach supplement companies and local nurseries to give

presentations, samples and hand-outs.

ii. Web-site: Low cost and easy networking.

iii. Provide Brochures of companies and hand – out containing importance of

various medicinal plants

iv. The product would be promoted to Health & Supplement Companies,

Processors and Nurseries.

v. Initially personal meetings and later stages presentations by

representatives will be carried out.

VIII. Operations

The Operational activity mainly will include following stages;

Bowing & Planting

Here the seeds of various plants will be sowed and some of plants will be

planted.Proper care, nourishing activities and regulation of growth is carried. Proper,

gradual and required amount of water, manure and pesticides are supplied to get

desired quality of plant.

Growth & Care

Proper and desired growth of plants is possible only if proper care and good

nourishment facilities are available. Timely manure, pesticidal and insecticidal

activities will be provided to plants. Ample water supply is necessity hence, special

care will be taken to provide it. Special facilities like green shed will be provided to

plants to save them from more exposure to sun, if not can hamper their growth and

other normal metabolism.

Cutting and Storage

After the growth the cutting will be done in hygienic conditions. Proper care

will be taken not to affect the normal metabolism of the plants. After cutting process,

the plants will not be kept in inventory for more time but will immediately distribute

to the customers ASAP.

Distribution

The distribution facilities will be taken care by the Customer itself. It will be

mentioned in the Purchase order that Sanjeevani Botanicals will be responsible only

up to the factory (i.e. farm)gate, later it’s the responsibility lies with the customer

regarding the type of distribution, place at which to be distributed and the mode of

transportation.

(Operations Should also Have):A. Identify location

1. Advantages2. Zoning3. Taxes

B. Proximity to suppliesC. Access to transportationD. Technology Used

Business Model

Strategy

Competitive Edge

Sales Forecast

Break-Even Analysis

Year 1 2 3Net Profit 3.67 6.82 12.67

Total Investment – 12 lacs

From projected Profits, the investment will recover in 3 years.

Earnings in 3 years – Rs. 12.67 lack

Earnings per month------------------------------------ = 12.67/12

= 01.05 lacs

Remainder investment from Year 2 ------------------ = 12 – 6.82

= 5.82 lacs

Months in year 3 to recover remainder investment-- = 5.82/1.05

= 4.9 months

Hence, Break Even point will reach at 2 months & 5 months

Management Summary

ManagementA. Management team – key personnelB. Legal structure – stock agreements, employment agreements, ownershipC. Board of directors, advisors,consultants

CEO, COO, CFO Descriptions (Check the PDF file)

Organizational Structure

Management Team Gaps

Personnel Plan (Check PDF file)

Financial Plan

Important Assumptions

Exit Strategy

BALANCE SHEET:

(in Rs. Lakhs) Opening Projected

     

Liabilities    

Capital investment 7 7

Loan 5 4

Accounts Payable 0 0.3

     

Total 12 11.3

     

Assets    

Land 2.25 2.475

Machinery 3.69 3.321

Furniture 3 2.70

Accounts recievable 0 2

Cash & Bank balance 3.06 0.804

     

Total 12 11.3

PROJECTED INCOME STATEMENT:

Figures in Rs. Lakhs 1 2 3

Income      

Sales 15.00 22.00 35.00

     

Total 15.00 22.00 35.00

     

Cost of Production 2.50 3.00 6.00

     

     

Gross Income 12.50 19.00 29.00

     

Fixed costs      

Insurance 0.50 0.50 0.50

Advertising and

Promotion

1.37 1.75 2.50

Stationary 0.10 0.12 0.25

Employee salaries 3.52 4.95 5.45

principal amount

repayment

1.00 1.00 1.00

     

Total 6.49 8.32 9.70

     

Variable Costs      

Office Overheads 0.10 0.25 0.50

Miscellaneous 0.05 0.15 0.25

     

Total 0.15 0.40 0.75

     

     

Total Costs 6.64 8.72 10.45

     

     

Cash Flow from

Operations

5.86 10.28 18.56

     

     

Less Depreciation (@ 10% of

capital)

0.37 0.33 0.30

   

EBIT 5.49 9.95 18.26

PROFIT & LOSS ACCOUNT:

(Figures is Rs. Lakhs) 1 2 3

       

Sales 15.00 22.00 35.00

Cost of production 2.50 3.00 6.00

       

Gross Profit 12.50 19.00 29.00

       

Expenses 6.64 8.72 10.45

Depreciation 0.37 0.33 0.30

       

Sub Total Expenses 7.01 9.05 10.75

       

EBIT 5.49 9.95 18.26

       

Interest 0.25 0.20 0.15

       

EBT 5.24 9.75 18.11

       

Tax 1.57 2.92 5.43

       

Net Profit 3.67 6.82 12.67

CASH FLOW STATEMENT:

Figures in Rs. Lakhs)        

  1 2 3

Income  

Sales 10.00 18.00 27.00

Accounts receivables(20%) 0.00 2.00 4.00

Total 10.00 20.00 31.00

       

Cost of production 2.50 3.00 6.00

       

       

Cash received 7.50 17.00 25.00

   

Expenditures  

Fixed Cost 6.49 8.32 9.70

Variable cost 0.15 0.40 0.75

Accounts Payable(10% on cost of

products)

0.3 0.25 0.6

   

Cash Spent 6.94 8.972 11.045

   

Cash Flow   0.56 8.028 13.955

Competitors List:

Maxor Agro Allieds, Mumbai

Vanashree Agrotech, Pune

Reddis N P International, Hyderabad

Rainbow International, Gujarat

Apara International, Mumbai

Swaraj Herbal Plants, Lucknow

S. J. Herbal & Health care, Bangalore

Kamal Nursery, Howrah

G. Tradex, Mumbai

Deshmukh Farm, Mumbai

IF ANYTHING ELSE NEEDS TO BE ADDED. PLEASE DO THE SAME,

Lets complete this till Sunday evening,Thanks