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www.8am.in - organic-farming-of-sandalwood-in-hyderabd-andhra-pradesh-india

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A group of educated farmers, famous scientists & biologists (Having 40 years of experience in their field) claim to benefit individuals with a multi crore profit project. Their claim is not out of …

A group of educated farmers, famous scientists & biologists (Having 40 years of experience in their field) claim to benefit individuals with a multi crore profit project. Their claim is not out of mare imagination but is backed up by facts and figures which can be globally verified too. Kindly spend some time and go through the entire article to decide for yourself. Who knows you might end up being a beneficiary yourself or could guide someone needy. This project is meant for perfect planners who have the maturity of cross checking realities, planning their retirement well and securing their next generation.


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  • 1. How to grow organic Indian Sandalwood1) Is It legal to grow/sell Sandalwood? Does GovtOf India permit this?Sandalwood trees were the property of the government for years, but now the rule haschanged. As per the Section 108 of the Karnataka Forest (Amendment) Act 2001,sandalwood tree grown in a specific land is the property of the owner of the land. Hence,anybody can grow sandalwood without any apprehensions.The government is also givingsubsidy to grow sandalwood through State Medicinal Plants Authority and HorticultureDepartment.Kindly check the proofs provided below:The Karnataka Forest Amendment Act of 2001- Sandalwoodhttp://www.ndtv.com/video/player/news/sandal-the-lost-treasure-of-india/32497http://www.business-standard.com/india/news/corporate-sector-enters-sandalwood-plantation/431370/http://www.hindu.com/2008/08/08/stories/2008080856441100.htmhttp://www.thehindu.com/todays-paper/tp-national/tp-andhrapradesh/article2028212.ecehttp://www.asiantribune.com/news/2010/05/24/sunday-celebrity-sandalwood-scientist-anantha-padmanabhan-works-royal-tree-restoratiWe grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call9000086464.2) Can Sandalwood cultivation really fetch crores of rupees?Yes it can. Kindly find the following increase in price since 1990 till 2010. The pricesmentioned below at per metric ton (mt). As per our project analysis we would be able to fetchupto 8 (mt) from each acre of cultivation1) Indian Sandalwood has huge demand worldwide and the supply is currently way under thedemand.2) 100 gms of branch wood (sandalwood) costs Rs 900 (source : Mysore sandal soap,Karnataka)3) 5 ml of sandalwood oil costs Rs 1350 (source : Mysore sandal soap, Karnataka)We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call9000086464.3) Is it possible to harvest Sandalwood in 15 years as we heard it takes around 35 - 40years?So far we have only heard and known Sandalwood which was naturally grown in the forestatmosphere. Sandalwood is a semi parasite crop and depends on host plants for most of itsnutrients, this is not readily available in the forest and therefore the growth takes time.Adding to this is the Govt policy which restricts living trees being cut down in Forests. Onlydead Sandalwood trees in forests can be taken for production.However, the scenario in organized cultivation is different. Host plants, water and fertilizermanagement are properly done to ease Sandalwood’s growth thus achieving optimum outputwithin 15 years.We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call90000864644) There were other similar projects in the market involving Teak-wood which failed,how is yours different?
  • 2. Not really. Teak-wood is considered the king among Timber which is used in every Indianhousehold and as a tree it has never failed. The people and their greed had caused an alarmingsituation for Teak-wood plantation. We need to understand that there is a huge differencebetween an agro based farming and just planting few trees in a small real-estate plot which ismeant for future occupation . The real-estate-giants who started this disaster had little or nilknowledge in teak cultivation. The only intention we sensed was money minting. The majoraim was to promote real estates and land sales by showing an added advantage of incomefrom teak-wood. For them cultivation/plantation was just an added benefit to attract thecustomer. The real-estate owners benefited from the land sales and never gave anyprofessional care for the crops.We have come across other customers who have paid some X amount for a tree to companieswithout knowing as to where the plantation is being done, who does the plantation and whatis the security being given for the invested amounts. When customers fundindividual/companies whose real intention/income source is not from agriculture/plantationthen the results are fatal . However, for the error made by humans the tree gets blamed. Thisscenarios has caused such an adverse effect and mind-block for individuals today that teak-plantation (in fact any plantation) has become a talk of the town as being an unfruitfulinvestment.The reality is different. If Teak-wood is being used in every household and we pay goodamounts to buy them then someone-somewhere is doing a good plantation.An investment involves your money being entrusted into someone else’s hand for which youexpect some returns and it always involves risk and we are no exception. However what oneneeds to analyze is the amount of risk involved compared to the reward compensated for therisk taken.In general everyone only concentrates on the outcome projected for an investment. The mostimportant point/s which people tend to forget while investing are:1) Where is your money being invested? Does that source has the capacity to achieve profitsas projected?2) Does the instrument/person/company, who do the project, have the capacity & expertise togenerate income from your investments?3) What is the security being provided for your investments and is it justified?4) What, where and when is the benefit for the person who handles your investment?5) Does the investment plan provide a profitable & anytime exit plan for you?We at SiriAgri Group have an answer for the above questions :1) We are investing your money to cultivate Indian Sandalwood which is the top sold in itskind world over and its capacity to generate in crores is beyond doubt.Consider checking thenext question (Q.no 3)for details.2) SiriAgri Group is a 100% agro based company and the team involved consists of scientists,biologists, horticulturists and farmers. Our passion and area of expertise is Sandalwoodfarming and we are working towards its restoration.Our Chief Executive Scientist(CES)Dr.HS AnanthaPadmanabha has done successful plantation in many counties one being Australiawherein TFS (Tropical Forestry Services of Australia) has grown Indian Sandalwood onmore than 35,000 acres of land involving thousands of customers. If anyone in this world cancultivate Sandalwood we challenge that we would stand the top amongst them.3) (a) Land is the only immovable instrument involved in farming. All other assets like,saplings, bore-wells, drip, security walls, sump, guesthouse including, the time, effort &expertise of the team is invested on this unmovable asset and this instrument called land isbeing registered in the name of the investors.
  • 3. (b)We are offering the land with all amenities and the expertise of our team at the base pricewhich we guarantee that an individual cannot find anywhere else. Owning an individual pieceof land today is the dream of many however the price offered in the market is way above thereach of a common man. Providers offer one SqYd at some XXX amount and add 100-500rupees per SqYd in the name of development charges. Some even go in the name of offeringone acre of land at a said price and only give 4000 SqYds deducting 840 SqYd (one acre ofland = 4840 SqYs)in the name of development charges, wastage charges for roads/amenitiesetc.We are charging a straightforward cost which is applicable to do this farming at the actualcost incurred to do Sandalwood Farming with State of the class technology, expertise andwithout compromising on cost or Quality. As a company we will be selling this propertybetween a price range spreading between Rs 116 till Rs 285 per SqYd based on our “STEU-UP” pricing module and we guarantee that even at our final price (Rs 285 per SqYd ) thispurchase is a very fair deal.Your core investment has the full value if liquidated (sold back) at any given time. Thissingle factor reduces the risk and maximizes the investment security.4) This is a very important point to be carefully examined before investing into anyInvestment source. An individual/company can never get you profits for your investmentunless they themselves are properly benefited. This applies even at ones workplace.WHAT :SiriAgri Group gets reasonably benefited for the efforts which the company & itsteam put in. We get rewarded 100% of the benefits for the first four years thereafter we havea 50% share from the profits till the end of the project.WHERE : We get the profits from the short term crops like raggi, watermelon, vegetables etc.From the fifth year we get benefited from the mango yields till the end of the project. Tenthyear we get a bonus in the form of the profits from Teak wood and at the end of the projectwe get a huge share from the Sandalwood harvest.WHEN : We get this profits right from the beginning of the project till its end and only whenwe do our work.5) Absolutely, since the investment is done on the base price required to do farming theinvestor has every option to exit anytime, with a benefit of course, SiriAgri Group adopts thestep-up pricing module which starts from Rs 116 per SqYd and increases it to Rs 125, Rs150, Rs 165, Rs 185, Rs 210, Rs 235 and finally to Rs 285. The increment of pricing purelydepends and is proportionate to the development completed in the farm. This helps andinvestor to gain initial benefits based on the Risk vs Reward ratio calculation.We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call90000864645) What is the plan/proposal of SiriAgri Group?SiriAgri Group is an 100% Agro based company and consists a team of Scientists, Biologists, horticulturists and farmers with 40 + years of experience in Sandalwood cell biology. Weintend to do collective farming of Indian Sandalwood (Santalum album)in huge volumes.Agriculture is our teams passion and Sandalwood is our area of expertise.When farming is done in an collective manner and in huge volumes the cost incurred toinvolve latest technology, equipments and expertise comes down.This is what Australia hasbeen doing and is now supplying Indian Sandalwood to India.Australia is doing farming of Indian Sandalwood involving Indian Scientists ( Dr.H SAnanthaPadmanabha& Team) and selling it back to India which is a very alarming scenario.
  • 4. India has the best suitable environment to grow Indian Sandalwood. Until now we werehand-bound as Indian law did not allow individuals to grow Sandalwood however with theamendment of this law we as a company intend to do Sandalwood farming. Dr.H SAnanthaPadmanabha the same scientist who has successfully done this plantation in manycountries including Australia and in over 35,000 acres of land is now the Chief ExecutiveScientist (CES) of SiriAgriGroup.As a company SiriAgri Group can independently doSandalwood farming however only upto an limited extent. As mentioned earlier, to bringdown the cost and to do an optimum utilization of this rich resource found within India we asa company have to do it in large volumes and the best way to do this is by involvingindividuals as a team and increasing the area of cultivation.It takes time, money and expertise to do Sandalwood farming. We intend to contribute time& expertise and invite individuals who have the passion for farming to invest as per theirfinancial capacity. The rich yield from Sandalwood to be shared on 50:50 ratio thus justifyingboth the investors & the experts.We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call90000864646) What are the risks involved in Sandalwood plantation and how does SiriAgri Grouptake care of these risks?This is a very important Question we request investors to read it thoroughlyClimate:K Muralidhar Reddy (Acharya) Designation with SiriAgri Group: Executive EnvironmentalScientist who is a Master of Science (environmental science & engineering) from Universityof Maryland College Park, MD,USA handles the needs of environmental changes and itseffects in our projects.a) Andhara Pradesh, specially Hyderabad and surroundings are known to experiencemoderate climate. Sandalwood Farming survival need of climate varies between 5 degreeCelsius to 50 degree Celsius.b) The current project involves plantation of 1,12,500 trees which naturally decreases theenvironmental temperature upto 9 degree Celsius compared to the natural temperature thusensuring that even in peak summer the temperature in the farms never exceed 40 degreeCelsius.c) The selected project area and its surroundings has never experienced extreme wind orcyclones however as a contingency planning the initial saplings are planted with the supportof 6 ft rods/bamboo sticks to avoid getting uprooted.Diseases:SiriAgri Group stands incomparable from the other on this very important risk factor. Thereare about 150 diseases/insects effecting Sandalwood saplings (If you want a completedescription of the diseases and their cure click here ) however 99% of them are eradicated inthe one year’s duration in the nursery specially maintained for our group. Post one year ofnursery maintenance saplings are handpicked for farm cultivation. During the growth tenureone has to take special care of insects like defoliators, sapsuckers, stem borers and termites.The role of sap sucking pests belonging to the family Coccidae is very deleterious to thenormal health, growth and reproduction of sandalwood plants specially as this are invisible tohuman naked eye and cannot be identified easily.
  • 5. Our expertise team is specially trained to handle this occurrence by regular monitoring of thecrop and its health.Water availability/ drought :Mr S V L Prasad who is currently working as Manager Horticulture of the Taj West End (TajGroup Hotels) Bangalore handles the horticulture department of SiriAgri Group.a) Sandalwood trees consume minimal water for its growth when compared to itscounterparts. The trees need watering only 5 months in a year and at the intervals of 14 dayseach.b) The current project has water availability from 9 ft onwards. Bore-wells dug in the farmare done after a firm geological survey and are dug almost 10 times more than the currentwater availability.c) As a contingency planning ground water recharging module is implemented wherein waterbeds are prepared within the entire farm by digging wells upto 30 feet and filling them withlayers of rocks and sand beds.d) As the last resort, in case of failure of all the above planning, water can be availed onsubsidy from the Government canal which runs within our project.Soil fertility :a) The land selected for plantation go through proper soil test for their PH value. The currentproject at Aleru has been selected post these tests. Even in scenarios where the ph valuereduces interim , our scientists have identified artificial means of substituting it.b) The initial test have proved Aleru and surroundings to be very fertile for Sandalwoodcultivation specially (santalum album)c) The surrounding have living sandalwood trees aged 4-6 years in the surroundings provingits capability to cultivate Sandalwood.Mortality/Failure % :SiriAgri Group considers this factor as the most important factor in which the companyexpertises. Mortality/Failure % is very common in an unorganized farming done byfreelancers, individual farmers, non agro based farmers like commercial real-estate venturesetc who fall prey to this loss. This is a long term project and people try to cut the cost at theinitial levels. I.E purchasing sapling at the least cost possible without knowing the cropgenetics , not concentrating on soil fertility or pre-planning for soil erosion, not spending onwater harvesting or contingency planning, compromising on security parameters,compromising on the cost to take expert assistance etcLet us give you an example of what we are trying to say : lets say you have been assigned aproject in hand and as per your analysis your target profit from that project is Rs 1000 and thecost to do the project is Rs 100. When you know the outcome ratio is huge when compared tothe cost then it doesn’t make sense to compromise on the quality or cost which the projectneeds to complete successfully and risk/reduce the output.At SiriAgri Group we handle this factor professionally without compromising as we are 50%share holders of the profit. The common mortality rate in our project is upto 18% which wetry to further bring down by following the below mentioned parameters :a) SiriAgri Group has a independent seed orchard designed to improve the genetics of theseed stock to produce trees of the highest quality. Superior trees are selected based on growthcharacteristics and oil content. These are then control pollinated to produce seed for use in theproject.
  • 6. b) The saplings from this seeds are then grown in nursery for a period of 12 months beforeplanting it into the cultivation area to further reduce the count of dead, week, infertile andimpotent trees.c) Further, the hand pick saplings are planted in the cultivation area and back-up saplings arestill maintained on a 100 : 3 ratio to further replace dead trees by replanting until the fourthyear. Mr S V L Prasad who is a member of SiriAgri Group specializes in re-plantation oftrees.d) Trees planted in the cultivation area are supported with rod/bamboo sticks till the 4 year tohelp its roots gain ground support.Labour :With the growing economy the labour availability is shrinking day by day. With easier meansto earn more even farm labourers in villages are fast moving towards metros causing hugeshortage of availability in farming sector.SiriAgri Group handles this sensitive issue with adopting an combination of technology &ethical traditional means. Our projects adopts latest Hi-Tech equipments which reduces themanual labour by 68%. All major farm activities starting from digging holes for plantation,regular weeding of dry grass, watering the plants etc are managed by machinery reducinglabour dependency. Even the drip irrigation adopted by our company can self detect and pinpoint any faults within it thus reducing supervision..The rest of the requirement of human labour needed to do the farming is select from villagesfollowing a stern recruitment process and the selected candidates are taken on permanentpayrolls of SiriAgri Group with all facilities like, PF, pension, bonus and a small share in theprofits.Fire:Fire normally happens in an unattended surroundings such as in wild forests. However,SiriAgri Group has understood the damage capacity of such untoward incidents and hasplanned well in advance.a) The first contingency planning is done by constructing an boundary thus reducing the riskof intentional planned fire outages done on purpose.b) The entire farms are sealed with single point entry system into the cultivation area whereinthe staff/guest are frisked for security check.c) The farms undergo regular process of weeding wild grass thus reducing the fast growth offire in case of one.d) The drip system adopted by SiriAgri Group are equipped with heat sensors whichautomatically start sprinkling at their top capacity when there is a sudden change in thetemperature. This acts like a fire extinguisher.e) The entire farm is well planned with approach roads for a fire- brigade vehicle to reach anypoint without hindrance.f) The permanent staff stationed at the project are trained/equipped to handle minor firehazards.Theft:Sandalwood theft starts from the 6th year as the tree starts showing traces of oil content andtherefore we have made adequate precautions for the same. SiriAgri Group spends upto 36 %of the entire project budget on security.a) A very important point to be noted is the GO passed by Govt of India. As per the GO, theindividual/company possessing/farming Sandalwood trees is/are the absolute owners of thesame and can enjoy the outcome of Sandalwood without restrictions. Earlier smuggling/theftprevailed as Sandalwood was considered as govt property and individuals possessing it wereunder illegal possession.
  • 7. b) 7ft walls for the entire farm with 2ft of Solar fencing form the 1st level of security makingit a single point entry and a secured gated farming module.c) The entire inner layer within the boundary walls are once again sealed with a securitysoftware which has been specially designed for SiriAgri Group ( Security software companiesname and details will not be disclosed for security reasons.) (i) This software security walls are designed to alert any changes in the continuity of thesecurity chain I.E in case of any breakage at any point of the wall the security software sensesthe breakage and alerts. (ii) Sensing of human penetration by sensing heat.d) 24x7 security personnel staff which would be increased as per requirement and thegrowing age of the plant.e) The security staff stationed at the project is shuffled every 11 months as to avoid any localcontact.f) Full time dog squad management from the 7th year as a contingency planning.i) Installation of vigilance cameras at key points with 24x7 recording facility.j) All above mentioned security activities to be outsourced to different vendors for amaximum period of 24 months without any scope of agreement renewals.k) Inserting of RF Ids (Radio Frequency Ids ) in the stem of all Sandalwood trees at the ageof four which is invisible to naked eyes however can trace the transportation of logs in worstto worst scenarios.Loss of key role personnel:SiriAgri Groups management team realizes that a long term project needs proper planningthis includes back-up planning for the key role personnel. Our projects are carefully plannedreducing the dependency on single individual/s by transferring knowledge to the nextgeneration. We have a team of 12 interns from various agricultural universities who are fulltime employees of SiriAgri Group and have undergone complete training in handling the cropmodule designed in case of any unforeseen events.Competitor Risk:a) Indian govt passing the GO for Indian citizens to cultivate/hold and enjoy Sandalwood hasalready made experts in Australia to draw back from re-cultivation of Indian Sandalwood asthey realize the risk and competition with Indian counterparts growing Indian Sandalwoodwithin India.b) Competition within India is very minimal due to various reasons like . i) The average per capita operational size of land holding in India is 1.33 ha, which is farbelow the world average of 3.7 ha per person. Further, land holdings have shown a marginaldecrease from the holding size of that of a decade ago (1.41 ha) ii) Financial capabilities of Indian Farmers which is no hidden secret. iii) Even if our real-estate giants realize the potential of Sandalwood and start selling theirplots with Sandalwood trees, their quality would be beyond the market acceptability and theoutcome can only be used for the carving industry which pays the least compared to the oilcontent bearing trees. iv) Small players and individual trying their hands would/might also face the sameconsequences of ending up their yields for the carving industry due to poor crop management, Security management, skills & expertise managements. (v) Even if we get proper & healthy competitors Sandalwood Industrys current demandneeds about 80,000 hectares of cultivation each year to meet their current demands.Demand and Supply :With the GO being realized its very obvious for individuals to take up Sandalwood farmingand we at SiriAgri Group invite healthy competitors as we are strongly working towards therestoration of Indian Sandalwood within India. Demand would never be effected as right on
  • 8. date Sandalwood needs 80,000 hectares of cultivation to effect its current demand and thisdemand is increasing at 18% per annum.SiriAgri Group abandoning the project in midterm :This is highly impossible as we do not get profits at the beginning by selling land/s howeverget continuous and adequate profit right from the 3rd month of stating the project till theproject ends. As a company SiriAgri Group would continue doing Sandalwood Farming yearafter year thus capturing the Sandalwood market from the fifteenth year and thereafter. Asincome is shared on 50:50 ratio the company will continue to retain interest and monitor thefarming process in the best possible manner. The profit volume increases as the years passand therefore reduces the risk of abandoning the project in midterm.Insolvency of SiriAgri Group:a) SiriAgri Group is a well planned establishment with strong financial background. As acompany we have the financial capabilities of doing Independent farming without externalfunding.b) The project is planned to be self funded for all its maintenance costs as Sandalwoodfarming needs host plants at various levels which manage continuous funding formanagement.c) The project design is so made that the funding for END to END farming is collected fromthe investors right in the beginning to overcome any cash delinquencies from the investors.d) Experts involvement and their compensation has been well planned so as to sustain theircontinued interest in the project.We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call90000864647) How do you claim to provide maximum Security & Returns for my investments?To confirm that we provide maximum security & returns for your investment we need to firstunderstand what is the real meaning of risk. Risk is the potential that a chosen action oractivity will/might lead to a loss and in our case the risk in discussion is your initialinvestment.Risk in our case can happen if the initial purchase price is not justifiable. If Sandalwoodcannot fetch in crores . If our team does not expertise in cultivating Sandalwood and IfSiriAgri Group abandons the projectin between.The above factors have been carefully taken care of and a detailed explanation has beenanswered above under Q.no : 2Risk of Initial Investment : This risk prevails till the investment amount is not secured I.E ifyou are investing @ Rs 165 per SqYd can liquidation value (that is if this property isdisposed) get you Rs 165 atleast. SiriAgri Group guaranties this factor by selling the projectat the base price and adopting the “STEP-UP” pricing module.Risk when compared : Once you are confirmed that your property can fetch the investedamount + atleast Rs 1 added ( I.e if you purchase it at Rs 165 per SqYd and it can fetchatleast Rs 166 per SqYd) the risk with comparison starts. Like, what would it fetch if you hadinvested it elsewhere. Sandalwood Farming returns ratio is 1:50. means, it has the capacity offetching Rs 50 for evey rupee invested and is way above any available market option.We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call90000864648 )What is “STEP-UP” pricing module and how does it helps customers?A project needs investor’s funding right from the initial stage however different investorsneed different security levels to help them understand and feel secured to invest in anyproject.(a) Few want to know as to how many people have invested and are ready to invest only aftermany others invest.
  • 9. (b) Few want the plantation to be completed and only post which they feel comfortable toinvest.We as a company understand and accept the insecurity nature of the customers and customerscannot be blamed as the past experiences have not been good in many cases. However, as acompany we need the initial investors to invest in order to answer these questions and toreach the plantation stage.On the other hand we have investors who can analyse the capacity of the team and the projectdetails at the initial stages and can start investing. STEP-UP pricing module helps anorganization in such situations. The pricing in such modules purely depends on thedevelopment/s done in the project and the Risk vs Reward ratio.For example our pricing spreads between Rs 116, to 125, 150, 165, 185, 210,235 and finallyto Rs 285 per SqYd. Anyone buying at any stage get the same final benefit of 4crs.The difference in the initial investment pricing helps the customer decide as to which stagethey want to accept entering the project and properly compensates the initial risk takes as perthe Risk vs Reward ratio.We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call90000864649 )This is the first Sandalwood project for Siri Agro Group, how do we trust yourexpertise?This is not just the first Sandalwood cultivation for Siri Agro Group but is the first for one ofits kind for India. We suggest you to check on the points given below:1) We have a great Team of Scientists and Biologists with 40 plus years of experience insandalwood cell biology who have mastered the technology of artificial raising ofsandalwood.2) This is one of the first of its kind of cultivation being done in India however it’s not thefirst for the scientists. Farming has been successfully done on 35,000 acres of land in othercountries.3) You are welcome to check and do a cost analysis and verify the asking price. At Rs 165PerSqYd we DO NOT profit with the sale of the land.4) The land is registered in your name thus reducing the risk.5) Though very difficult for us, we have offered you an installment facility for 40 months.With this, You have more time to check our credibility.Rest, let the time speak.We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call900008646410) If the results are guaranteed, then why don’t the farmers or the project owners dothe farming themselves?As a company SiriAgri Group has already identified the huge potential in Sandalwoodcultivation and to make this even more successful and risk free we have pooled in the highesttalent & expertise. We have adopted the latest techniques which comes from years oftailoring and is based on a tested and proven technology. The costs incurred in adopting thistechnology & expertise can be used upto any extent of farming area. As per our experts’analysis the cost of farming per acre gets even lesser with the increase in volume of farming.As a company we can independently do its farming however only upto a limited extent. Todo an optimum utilization of this rich resource, to bring down the costs incurred and toincrease the volume of farming we involve individuals as a team and share the outcome.Many individuals, especially the working class employees wish to get into farming. However,lack of time and expertise keeps them away from doing so. Sensing this as a profitableopportunity many sharp brains lure employees in the name of Mango/fruit bearing plantation,green house planning, second home etc etc. Post involving in such unfruitful investment
  • 10. option the investors form a negative prospective towards farming and add to the alreadyprevailing disaster to our agro industry.As a company SiriAgri Group helps these individuals determine the actual costs incurred fordoing an successful farming and offers them an opportunity to join the organizations growingpotential of Sandalwood farming thus also helping this cash crop called "wooden gold" retainits reputation before it gets tagged as in the case of Teak-wood. This combination ofindividuals and the company results as a win-win situation for all, including the tree.We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call900008646411) How am I benefited, what’s in it for me? You get the ownership of a decent property ( ¼ acre or multiples)at very nominal price. You get 50 % share in one of the world’s richest cultivations without personally involvingyourself as everything is taken care by the project owners. You invest, sit back and share theyields. Mango plantation fetches upto 80 thousand PA per acre right from the 5th year up to 30years. 10th year the teak wood fetches around 2.25 lakhs per acre.5th year the sandalwood cropyields and fetches the expected fortune of about 4 crore. The company is in the process ofgetting approved for “ carbon credits" which is a program run by the UNFCCC whichencourages individuals & groups who grow trees by awarding apprx $ 15 a year for each cropgrown (Starting from the8th year of the crop) Access to guest house with family and friends. Clearance from Govt of India has been availed thus no interpretation from the Governmentfor sandalwood sale. The best part I liked is that the income under this project is TAX FREE as it comes under“Green Money”. If we keep the commercialism aside, you would be a proud contributor of 450 trees (peracre) to the environment. Post 15 years this investment is seen as a good plan for a farm house as the project will endup with only mango groves (as teak and sandalwood will be sold ) leaving behind a lushgreen farm land big enough for construction, with gated community, common guest house,well laid roads connecting each acre of land giving independent access to the land owner/sand the most important “the likeminded neighbors “as all the owners would have minimum of¼ acre of land, which means “family privacy” and would be an ideal plan to get away fromthe concrete jungle for a post retirement lifeWe grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call900008646412) How do you claim that we get it for free?Let’s be clear. Nothing in this world is for free except the word “FREE” . Everyone has toinvest something or the other like time, expertise, efforts or money to achieve something. Wenever had this question in our FAQ’s section however after speaking to one of our client andlooking at the right way he approached to actually get his property for " FREE " is when wedecided to upload this Q&A to help others utilize the same.Here is an live example taken from one of our customers experience. Mr XYZ (namechanged) is a manager operations with one of the IT companies and had visited our projectwith few of his colleagues in the month of November 2010. That was the initial period for ourproject and we only had the project planning in place along with the barren land with wildbushes. While all his colleagues and himself liked the projections very well and understoodthe teams capacity, they still wanted to wait for the plantation to complete.
  • 11. Mr XYZ reproached us many times during November and December and kept clarifying allhis doubts specially in regards to progress stages of project and the “STEP-UP” pricingmodule. He finally offered to purchase one acre of land in installments however wanted adiscount on the interest part as according to him he would complete the payments by the endof 2011. He also wanted to sell ¾ acre as and when the prices increased and we had no issueswith that. At that time the pricing was Rs 125 per SqYd costing an acre Rs 6,00,000 and withinstallments it would bring it to Rs 7,00,000. Since we were getting the payments within oneyear we gave Mr XYZ an discount of 60,000 on his interest part bringing the total payableamount to 6,40,000 on condition that he would complete the installments by December 2011.Mr XYZ made a down payment of Rs 1,00,000 in the month of January 2011 and startedpaying his EMI of 20,000 pm from February. He kept inquiring about the developments ofthe project ever now and then till date. We went on with the developments on the land andpost completing major developments increased the pricing as scheduled to Rs 150 per SqYd.Based on the developments one of the colleagues of Mr XYZ who was also following usdecided to invest in our project and was given ¼ acre from Mrs XYZ’s 1 acre. The pricedifference benefit of Rs 30,000 was added to Mr XYZ’s payments. Here our company hadthe press release post which we conducted an get-together with all our existing customerswith their guests. Mr XYZ couldn’t make it to the occasion however his colleagues who arealso a great fan of ours had attended the meeting and expressed their desire to purchase.As we had promised Mr XYZ to sell only his property to any referrals of his, we called himup to confirm his friends desire to purchase however were surprised to hear what he said. MrXYZ had initially planned to sell his ¾ acre only when the price would increase to Rs 185and thus get his ¼ acre absolutely free(by selling ¾ acre 3600 SqYds multiplied by Rs 185=6,66,000 wherein he only had to pay Rs 4,50,000 to SiriAgri Group, thus benefiting2,10,000 as the difference price and therefore getting his ¼ acre for free) . But now he hadchanged his mind and wanted to sell only ¼ acre more and would only sell it when the pricecame upto Rs 235 or above as secluded with our pricing module.Taken by surprise and out ofcuriosity we asked him as to what he would have done in case his friends had decided not toinvested in our project even after the plantation. His answer was simple and clear.As per him he already had the financials to purchase ¼ acre of land outright in January butthen wanted to wait till we completed developments as we projected however he also wantedto take the advantage of the “STEP-UP” pricing module till then and would have no issueseven if the land was not sold as he would atleast have the land registered in his name oralready have the appreciated value by then if we went the way we promised and was happythat this appreciation happened much earlier than that.We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call900008646413) What is carbon credits and how do we customers financially benefit from it?As nations have progressed we have been emitting carbon, or gases which result in warmingof the globe. Some decades ago a debate started on how to reduce the emission of harmfulgases that contributes to the greenhouse effect that causes global warming. So, countriescame together and signed an agreement named the Kyoto Protocol . This is the largestportfolio for any country signatory to the United Nations Framework of Climate ChangeConvention (UNFCCC). The UN body certifies countries and companies that can trade incarbon credits under the Kyoto Protocol.The Kyoto Protocol has created a mechanism under which countries that have been emittingmore carbon and other gases (greenhouse gases include ozone, carbon dioxide, methane,nitrous oxide and even water vapour) have voluntarily decided that they will bring down thelevel of carbon they are emitting to the levels of early 1990s.
  • 12. Developed countries, mostly European, had said that they will bring down the level in theperiod from 2008 to 2012. In 2008, these developed countries have decided on differentnorms to bring down the level of emission fixed for their companies and factories. India,China and some other Asian countries have the advantage because they are developingcountries. Any company, factories or farm owner in India can get linked to United NationsFramework Convention on Climate Change and know the standard level of carbon emissionallowed for its outfit or activity. The extent to which I am emitting less carbon (as perstandard fixed by UNFCCC) I get credited in a developing country. This is called carboncredit.These credits are bought over by the companies of developed countries -- mostly Europeans.SiriAgri Group has outsourced this opportunity acquisition to various brokerage companiesand the final benefit negotiations isongoing.We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call900008646416) I would like to, but I am worried about the Telangana issue?We are not sure what it actually means by “Telangana issue” in fact we would like to knowhow it affects agriculture or the land value. Would a customer/owner sell his land for a lesserprice then what he purchased for? Even if the partition happens, it’s not going to be likePakistan and India’s separation. We would still be Indian citizens having completes rights.This might partially affect the commercial sites, super malls, i-plexes, or other businessestablishments which depends on daily customers and are located within the city limits. Thismight affect the real estate or the construction industry which took the prices sky highaccounting to the IT boom and now want a reason to pull back the prices due to poor sales..This project is entirely different and does not really depend on land value. The agriculturalyield is the most important factor here. In fact, this has come as a blessing in disguise to us.When we started the project somewhere 3 years back the same land was priced at around 2.3to 2.5 lakhs (Without including clearance/leveling/pit filling etc) however we have managedto acquire it at a much lesser price now as we acquired around 200 acres and this leads to abenefit for the end user. Anyways, this is a long term investment and is in agriculture. MotherNature would bless exactly the same yield irrespective of it being in Telangana or Andhra (nooffence please) and the land appreciation will also not getaffected as it is already bought at the least price possible. Everything has its own good andbad effects …its just the way you look at it.We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call900008646417) What is the cost of dry land in the same locality?The dry land costs approximately 3.5 to 4 lakhs per Acre (including clearance/leveling/pitfilling etc)We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call900008646418) Then, why are we being charged 7.92 lakhs for an acre?The project owners have taken the compete responsibility of the crop till the fourth year. Theinitial stages of sandalwood cultivation is the most costly affair. Things like , farmingequipments , saplings, planting expenses, bore wells, overhead tanks, sprinklers, geo codingtechnology, staff quarters, guest house, solar fencing, Roads for every acre of land,maintenance cost for 4 years etc take away almost all of the initial investment. This, whencalculated, for the entire project, comes to the asking amount by the project owners.Few of the major cost contributors for every acre are:
  • 13. Land with clearance, pit filling, levelingetc 3,50,000450 trees including transportation ( 395 each ) 1,77,750Drip irrigation /sprinklers 54,000Fencing 7 Ft (Cumulative for every ¼ acre) 60,000 TOTAL 6,41,750Other expenditures add and total up to the asking price. The farmers grow minute crops (likewatermelon, jawar, ragietc ) till the 4th year for their survival as the main trees do not shadethe land. This income is not shared with the land owners however helps them lower the costprize as maintenance cost is managed out of this.We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call900008646419) Do we (customers) have to pay anything for the maintenance cost after the fourthyear ?No, the initial stages of sandalwood cultivation is the most costly affair however after thefourth year the trees grow big and needs less maintenance. Added, the mango trees startyielding small incomes which takes care of the maintenance. Post maintenance expenses theland owners can expect small profits "approximately " 20-30 thousand PA (per Acre). Wehave classified the expenses to maintain clarity as the initial investment can only take care upto the 4th year.We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call900008646420) Why do we (customers) have to bear the entire initial cost when the profit sharing ison 50/50basis?The very intention of involving customers is for their money investment. The project ownerscontribute their part of investment with their expertise in sandalwood farming. However, thecustomers are not being left out as the land is being solely registered in their names withappreciating value.We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call900008646421) Who is Dr. H S AnanthaPadmanabha ?and how is he associated with this project?Dr.H S AnanthaPadmanabha, the forestry consultant, is an expert on sandalwood cellbiology, who mastered the technology of artificial raising of sandalwood. A scientist of 40years experience in forestry in India, he had worked as a senior scientist at the Institute ofWood Science and Technology in Bangalore (India) from 1964 to 1998 and was responsiblefor guiding research projects on sandalwood and other forestry species including but notlimited to techniques of growing sandalwood and decease and pests affecting forestry treespecies.Currently he is a Director of Karnataka Research Foundation and Advance TechnologyTransfer, Bangalore, Consultant to Tropical Forestry Services Western Australia, consultantto Forest Rewards, Western Australia, and had served as consultant to Department ofConservation and Land Development (CALM) and Forest Product Commission (FPC)Government of Western Australia from 1998 to 2002. He is honorary consultant to KarnatakaSoaps and Detergents Ltd, Bangalore, assisting and providing guidance to farmers, corporatebodies and NGO’s in growing sandalwood in India.
  • 14. He has co-authored books on sandalwood and have published over 150 publications in bothIndian and International journals. He was designated as chief Technical Advisor forsandalwood projects with the World Bank FREE project (ICFRE) Government of India. He iscurrently appointed as the chief technical scientist for this project . Many articles have beenwritten about him.We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call900008646422) Do you have any Insurance for this crop as it is a long term crop?No insurance company in Andhra Pradesh insures a long term crop. In East & West Godavariseasonal crops like paddy can be insured as the yield completes between 3 to 6 months andthe insurer continues to benefit on renewals. Sandalwood is a wild crop and the cultivationduration is longer therefore we do not have any Insurance. However we have taken amplecare and did our risk analysis well to handle any unforeseen situation/s.We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call900008646423) I would like to see the site. Do you provide the transport facility to visit the site?You are welcome to visit the site however we do not have transportation facility on companycost. You would have to travel on your own convenience, or company cab is provided at acost of Rs 400 per head.We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call900008646424) Are there any discounts or price negotiations ?The offer price is fixed and we do not have any scope for negotiations.We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call900008646425) When is the land registered in my name?The registration/transfer is done on receipt of full payment or on the completion of allinstallments.We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call900008646426) Can I get a copy of the Project Disclosure Document and the Memorandum ofUnderstanding (MoU)? ?Yes you can. Kindly send an email to pdd@8am.in and an email will be auto-forwarded toyour email id.We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call900008646427) Can we have choice in selecting the land allocated to us?An up to date copy of the layout and allocation would be available at the time of registrationand allocations are done on first come first serve basis (without any prior reservations) tomaintain a fair and transparent ownership.We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call900008646428) As owners, can we construct a farm house, on our own expense, in our allotted pieceof land?No, though customers being the owners it cannot be allowed for any construction in the“cultivation area”. However, if interested, separate area has been arranged at nominal cost.We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call900008646429) I come from farming background, can I implement/handle/add/modify any changesto my piece of land or the crop?
  • 15. Ideas/suggestions are welcome. However, there’s a lot of investment involved in availingproven technology by reputed scientists/biologists for the project and hence anychanges/modifications is strictly not permitted without prior and written concern of theproject owners.We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call900008646430) What happens if my piece of land yields lesser than the others. Will I get lesserreturns?As in cultivation, the yields might/would differ depending on lots of reason/s therefore thecollective yield is divided cumulatively among all the members, irrespective of individualcontribution.We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call900008646431) What if I wish to sell the property in the mid of the term?As the owner you are free to transfer/change the ownership however the new owner has toagree/follow the same agreement of cultivation as done originally. Any/all cost/s immergingout of the transfer has to be borne by the customer or the new party.We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call900008646432) As a member, is everything free of cost in the project guest house?The project guest house has been planned to provide basic facilities for members, planningfor a short visit (with prior intimations). The stay would be charged at very nominal expensesso as to have a fair and equal usage among all the members. However ,the members arerequested to use the facility only if needed and only for a short time as this would not be afull time accommodation.We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call900008646433) What is the project exit plan?The sandalwood harvest will bring the project to an end. Thereafter, the entire project wouldbe handed over to the customers after forming a general body and electing communityleaders. However customers who are interested can approach the project owners for anotherterm of harvesting with terms and conditions decided at that point (depending on prevailingconditions).We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call9000086464

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