OM Agriculture Ltd

BUSINESS PLAN PRESENTATION

OLIVE OIL FARMING

Presented by

Mayur SuraniC1411

Business GoalCREATE NICHE MARKET IN OLIVE OIL BUSINESS IN INDIACATER DEMAND OF INDIA'S OLIVE FRUITSCREATE HEALTH AWARENESS LEADER IN OLIVE OIL SUPPLIER IN INDIAEXPANDING BUSINESS IN PAN INDIA

Mission StatementCREATING SUSTAINABLE PRODUCTION OF AGRICULTURAL PRODUCTS AND DELIVERING VALUE TO CUSTOMERS

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Product : Olive Oil• . USAGE OF OLIVE OIL

Medicine Food Industries

Hair Care Products Additives

Fairness Products

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Business ObjectivesOBJECTIVES

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

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Market SummaryIndian Olive Oil Consumption 120 TonesProduction in India 2-30 TonesImport Average 110Production Growth rate 25%Key Import Country Spain, Italy , Israel, GreeceExisting Market in India Rajasthan and Gujarat Target Customers Oil Mills , Food corporation of IndiaEmerging market North and Pan India

Sources: www.rol.com

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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

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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

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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

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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

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Management MANAGING DIRECTOR

AGROTECH MANAGER HR MANAGER

To coordinate with Plan with HR ManagerGet vital Business Idea

Manage Contract Labors

Manage Financial Transactions and Accounts

ACCOUNT MANAGER

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OpportunitiesPROBLEMS OPPORTUNITIES

Selection of Agricultural Land First Mover AdvantagesIrrigation System Penetrating Local Market Certified Seeds Cost Efficient ProductionLack of Olive Crop Knowledge Availing Subsidiary on SeedsLimited R&D Scope Very Strong ROIScattered Market Lack of SCMUnawareness of Market Yards

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Business ConceptParticulars RemarksLocation South Gujarat : Valsad, Navsari, Kutch Total Area 10 Hectares(100,000 sq.m² )Land Acquisition Lease for 10 yearsAuxiliary Expenses Seeds, Water ,Technological

Equipment , Electricity , Security, Ware House,

Expected ROI Time 4 YearsActual Area of Farming 8 HectaresNo of Olive Plants 250-300/ Hectares (Average 2250

Trees) Average cost / tree 40Aprox.Cost Rs.90,000Partner country -IsraelPartner Company Rajasthan Olive Limited

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Financial PlanFixed Cost Approximately CostEquipment Cost 30,000Fertilizer cost 50,000Land Leasing Cost* 3,80,000 for 10 yearsWater irrigation cost 30, 000Plant cost 70,000

5,60,000VARIABLE COST Approximately Cost/ YearSalary of Employees* 2,00,000Labor Cost 10,000Maintenance Cost 30,000Administrative Cost* 70,000Miscellaneous Cost + Surplus 30,000 + 2,00,000

3,40,000: + 2,00,000

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Financial PlanLand 8 hectaresTotal Olive trees 2250Average yield / Tree 30-50 kgsEstimated cultivation 77,000 kgsLife cycle of Olive Farm 45 -50 yearsAverage return / year after 4 -5 years

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

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Sources of FinanceInitial capital Needed : 4,00,000 4,00,000Agricultural Loan Up to 5,00,000*Investment Type Incremental Subsidy on Special Crops* Up to 50,000*

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Resource RequirementsResources Particulars Workforces Semi-Skilled LaborsTechnological Modern Farming Tools (On Lease)Financial Personal Investment, Agricultural

Loan, Angel Investors

Distribution Coordination with Market YardsCultivating Land Horticulture Land

Commodities Future Price Auction*i.e.: 1 kg of Olive Fruit = Rs. 50 2250*35*50= > 40,00,000!!!!

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Risks and RewardsRISK Remark Weather VariableIrrigation System Pre-Plan requiredCrops Failure InsuranceLabor Shortage ManageableInsurance YesSales Using Effective Marketing

Strategies to MaximizeAfter 5 Years

2020 40,00,0002021 40,00,000Net Profit Margin Nearly 400% Annually

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THANK YOU