Professional Documents
Culture Documents
Business Plan
Group 1
10/22/16
Business Plan
Summary
Need for innovation in agricultural sector for
irrigation system.
Business plan is focused on automated micro
irrigation project, according to the survey by IARI
farm sector alone accounts 83% of water use.
Initial investment for development of product.
Strong technical and marketing team.
Annual yields of water in Karnataka is around 3475
TMC, from which 1695 TMC is used for irrigation
10/22/16
Business Plan
Objective
Capture majority of irrigation business in
Karnataka.
Offer our customers a superior service, at low
price.
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Business Plan
Mission
To generate growth and profit
for our company through
integration of people and
technologyexcellence,
focusing in the areas
ofquality,technical content
and innovation
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Business Plan
Vision
Innovation which can lead to
new green revolution.
Continuous growth through
sustained innovation and
total customer satisfaction
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Business Plan
Solution
Business Plan
SWOT analysis
Strength- Superior technology, cost effective pricing.
Market Size
Business Plan
Target Market
As per IARI, kharif, rabi, zaid crops alone accounts
for 75 per cent of the water used in agriculture in
India.
Growing these crops through the conventional
watering system requires about a million gallons
for an acre.
By using automated irrigation system control, the
water used can be reduced by half.
Initially covering around 160 acre of land, around
50 farmers, with the help of Karnataka neeravari
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Business Plan
10
ltd.
Marketing Strategy
Conducting workshops for farmers, on how to use
automated irrigation control system.
Advertising and promotions through DD Kisan,
approximate cost 60,000 INR prime time 9.00pm11.00pm
Business Plan
11
Marketing Manager
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Business Plan
12
Business Plan
13
Financial model
Business Plan
14
Financial Strategy
Cost(lakh)
Startup cost; 5%
operation cost; 33%
production cost; 63%
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Business Plan
Total start-up
budget
20,00,000
INR.
Production
cost of device
12,50,000INR
for 2500 units
Operational
cost for 1
year
6,50,000INR.
Startup cost
1,00,000 INR
15
Financial Expenditure
Initial cost of product for 2500 units, is 6,25,000
INR.
Expenditure
Number of staff
members
5. 2
Year
1
Year
Year 3
R&D Engineer
3,00,000
3,60,000
4,32,000
Marketing and
Sales
2,50,000
3,00,000
3,60,000
Operations
Manager
2,50,000
3,00,000
3,60,000
Blue collar
employees
1,50,000
1,80,000
2,16,000
Ware House/Rent
3,25,000
3,25,000
3,25,000
Production cost
6,25,000
7,50,000
9,00,000
Start-up cost
1,00,000
NA
NA
Total cost
20,00,000
22,15,000
25,93,000
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Business Plan
16
Implementation Strategy
Locatio Govern Numbe
n
ance
r of
househ
old
Maxim
um
numbe
r of
kits
Belman
Village
150
70%
105
1.5
1575
Udupi
District
15000
70%
10500
1.5
157500
Karnata
ka
State
500000
0
70%
350000
0
1.5
525000
00
Business Plan
17
Breakeven analysis
With the variable cost, the product will be priced
around 1000 INR.
Fixed + variable cost will be approximately
25,00,000 INR.
We estimate that we make a profit of 10,00,000
per year, thus our selling pricing per unit will be
1,400 INR.
To recover our break even cost we must produce
5,000 units.
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Business model
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19
Competition
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20
Future scope
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21
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