A Business plan presentation On “Udyog farming agency” Presented by:~ Akash Shah(Sy bba) Nikhil begani(fy bba) Chandraprakash agarwal(fy bba)Navnirman institute of management Surat. Submitted to: Rofel institute of management Vapi.
Executive Summary The aim of our study is to start an agricultural agency for poor farmers in india ouragency named as“UDHYOG FARMING AGENCY” – The summary report includes the whole agency summary in which their current market segments & the products are also included. The running phase in market seems to be declining stage as by last 10 years agriculture sector declined by a great margin. Aim of agency To be “The Best farming Service” agency in the country with besttechnology & large farmer segments. – Agency Location at Uttar Pradesh – Capital SizeApprox 2-3 croes in Rs. Products & Services- All agriculture Equipments,seeds,fertilizers & Consultancyservices This overall summary explain all about the plan we had prepared that includes the indianeconomic review,market,market analysis, promotion,pricing,operation cost,Financial assumptions and sources of funds.
Introduction of indian agricultureThe importance of agriculture to our economy can hardly be over-emphasized. It is the most important sourceof raw materials to feed our industries It provides employment to about 70 percent of our total labour force. Itcontributes more than 40 percent to our total national income. And it is one of the major foreign exchangeearners for our economy. But unfortunately, it does not .appear to be as sound as it should have been.The basic industry of India is agriculture. India is the greatest grower of sugarcane in the world and she standssecond in the production of rice and tobacco. In cotton, only the U.S.A. can surpass her. She is second to nonein the world in the production of groundnuts. She is the biggest producer of tea, except China. In jute and lac,she holds monopoly in the world. In the light of this, it is indeed sorrowfully surprising that India is faced withdeficit in her food requirements. It requires a complete analysis of the situation.A variety of factors, natural, technological, institutional, economic and social can be cited to explain thebackwardness of our agriculture Nature is bounteous and gives us all, but it gives erratically and often snatcheswith one hand what it gives with the other. If monsoons are kind, fields look resplendent with bright greensaplings but hailstorms lash there mercilessly or floods wash them away, and if we are fortunate enough toescape the wrath of all this, we are sure to be oppressed by locusts and other pest epidemics. The last threeyears saw severe drought conditions in the country especially in Gujarat and Rajasthan. Technological factorsinclude primitive equipment, lack of irrigation facilities and inadequate availability of fertilizers. Institutionalfactors imply uneconomical size of holdings and defective land-tenurial system. Social and economic factorsinclude the ignorance and superstitiousness of the farmers and their vulnerability on financial issues.The problem of agriculture in India should be tackled on a scientific basis. The programme of intensivecultivation should be launched upon. We should raise the low yield of every crop by bringing into service allthe knowledge and implements which the modern science has given us. The Indian farmer is conservative,orthodox and illiterate and is not readily willing to give up the age-old methods of cultivation which are out ofdate now. Her unprogressive outlook is the greatest hurdle in the way of improvement in agriculture. TheNational Government has to make a great change in the farmers outlook before launching upon any schemefor agricultural development in India. It is the duty of the Govern ment to supply better seeds and fertilizers.Farmers have to be trained in the use of scientific implements and chemical fertilizers, Cow dung and otheranimal droppings should be checked from being used as fuel.Irrigation is a very important factor m Indian agriculture. The farmers should not be left any longer at themercy of rains. India has big resources of water, but at present, the bulk of this water moves about in ferocious
floods causing great damage to life and property. This water has to be utilized properly. New canals should bedug out and tube wells should be bored in such a number that Indian farmers may -get sufficient water forirrigation in time.The total area under cultivation should be increased by means of reclamation. The fallow land should bebrought under the plough and there, should be proper distribution of land. In spite of ceiling on land, somepeople in India have too much of land while some are still landless. Co-operative farming in our country is notpossible at present. It may be adopted on a small scale or for the sake of experiment. If it has to prove useful, itshould be adopted on a large scale. As a national scheme, it should be adopted at least for three decades.Within this time, Indian farmers will be mentally and technically intelligent enough to understand theadvantages of cooperative farming. Cattle have been the greatest source of wealth in India. Unluckily, Indiansare indifferent towards their bullocks who form the backbone of Indian agriculture. They are of poor quality.All the farmers of India can never be in a position to have tractors. They will have to depend on bullocks moreor less. So, they should have healthy and good bullocks.Improvement of our agricultural productivity calls for the fulfillment of three basic conditions. Aneconomically viable technology should be easily available so that farmers can dispense with outmodedimplements of agriculture. Next, they should find within easy approach cheap credit and an efficient networkso that they can avail themselves of the technology available to them. Finally, land reform programme shouldbe implemented more genuinely so that the benefits of an easily available technology can really percolate tothe small farmer. There can be hardly any meaningful growth unless technology, cheap credit and land reformscoincide.Social organizations should be set up to fight pest epidemics. Greater attention should be paid to the publicstorage system so that our agricultural produce can be satisfactorily preserved both qualitatively andquantitatively. If we need efficient technology to promote growth, we need equally efficient post-harvesttechnology to preserve what we have produced. Last of all, if this agricultural produce can be equitablydistributed, it will ensure optimum utilization of our production.Indian farmers lack in initiative. They require guidance, mechanization, better seeds and fertilizers, technicaleducation to farmers, sufficient means of irrigation equal distribution of land and the introduction of scientificmethods will certainly revolutionize Indian agriculture.
Company overview – Mission statementTo be “The Best farming Service” agency in the country with best technology & large farmersegments. – Location- Uttar Pradesh – Capital Size- Approx 2-3 croes in Rs. – Market – Indian farmers – Products & Services- All agriculture Equipments,seeds,fertilizers & Consultancy services. – Objectives – To achieve the market of services in agricultural sector as intermediary & provide the best quality facilities to farmers with gudiance. Purpose of the business • To provide all type of equipments & facilities of agriculture including(labors, harvesting, tractors & all other needed machines). • Farmers are provided relief through insurance on their Farm as per their permission. We act as intermediary between insurance company & farmers. • Budgets for farmers are prepared as per their length of land. • Facilities of providing different types of seeds as per their demand. • Facilities of fertilizer including Chemical & natural both. • Education facilities of farming techniques to farmers which help them develop their own techniques. • Special crops farming facilities are available i.e Potato, tomato,fruits etc.
About indian agriculture • Contributes to 24% of GDP • Provides food to 1Billion people • Sustains 65% of the population : helps alleviate poverty • Produces 51 major Crops • Provides Raw Material to Industries • Contributes to 1/6th of the export earnings • One of the 12 Bio-diversity centers in the world with over 46,000 species of plants .
Need of businessCauses for Low Productivity of Indian AgricultureThe causes for low productivity of Indian agriculture can be divided into 3 broad categories,namely, (1) General factors, (2) Institutional factors and (3) Technological factors.1. General Factors(a) Overcrowding in Agriculture:The increasing pressure of population on land is an important demographic factor responsible forlow yield in agriculture. The area of cultivated land per cultivator has declined from 0.43 hectarein 1901 to 0.23 hectare in 1981 despite an expansion of area under cultivation. Hence,agricultural sector has become overcrowded and this has adversely affected the agriculturalproductivity.(b) Discouraging Rural Atmosphere: The Indian farmers, living in rural areas are generallytradition-bound, illiterate, ignorant, superstitious and conservative. Their attitude of apathy andneglect keeps the system of cultivation primitive. The farmers are not prepared to acceptanything new as a consequence of which modernization of agriculture becomes difficult.(c) Inadequate non-firm Services:Shortage of finance, marketing and storage facilities are also responsible for agriculturalbackwardness in India. The co-operatives and other institutional agencies have not been able toeliminate the village money lenders. Storage facilities for farmers are not still available topreserve their agricultural product for a better price.(d) Natural Calamities:Indian agriculture is a gamble in the monsoon. If monsoon becomes favorable, we have a goodcrop; otherwise agriculture is affected by drought, flood and cyclone.
2. Institutional Factors(a) Size of Holding:The small size of holdings in India is an impediment in the way of progressive agriculture. Theaverage size of holdings in India is less than 2 hectares. In case of very small firms, it is difficultto introduce new technology. Further, due to fragmentation of holdings a great deal of labour andenergy is destroyed in cultivation.(b) Pattern of Land Tenure:The agrarian structure in India is not conducive for a progressive agriculture. The tendrilrelationships were such that the big landlords used to have a considerable influence on theirrespective areas. The actuarial cultivator had known incentive for improvement and moreproduction. Though the zamindari system has been abolished, absentee landlordism still prevails;heavy rents are still extracted and there is no security of tenancy. Under these circumstances, it isunwise to expect any remarkable increase in agricultural productivity due to the apatheticattitude of the tillers of the land.3. Technological Factors(a) Poor Technique of Production:The technique of production adopted by Indian farmers is old, outdated and inefficient. Thetradition-bound poor farmers have not yet been able to adopt the modern methods to get the bestyield from their land. The seeds they use are of poor quality and the age- old, traditional woodenplough still exists in Indian agriculture. The farmers do not enjoy the benefits of agriculturalresearch and development programmes. They consider agriculture as a way of life rather than abusiness proposition. Therefore, production remains at a low level.(b) Inadequate Irrigational Facilities:Indian agriculture is a gamble in monsoon due to non availability of irrigation facilities. In spiteof several measures, irrigation has not substantially increased in India.
Measures to Improve Productivity:The F.A.O. has suggested following measures to increase the productivity of Indian agriculture:1. The farmers should be provided with a stable price for their agricultural products at aremunerative level.2. There should be an expansion of adequate marketing facilities to sell the agricultural product.3. The land tenure system should be changed in favour of the cultivator.4. There should be a provision of cheap credit on reasonable terms especially to small farmersfor better techniques of production.5. The modern inputs like fertilisers. Pesticides and improved seeds should be made available tothe farmers at reasonable prices.6. There should be provisions of education, research and extension of agro-economic services tospread the knowledge of improved methods of farming.7. The State should make provision for the development of resources which are not possible inthe part of individual farmers e.g. large scale irrigation, land reclamation or resettlement projects.8. There should be an extension of land used and intensification and utilisation of land already inuse through improved and scientific implements.
Market AnalysisSituational Analysis. • As it is the very beginning of business as a start-up company. Market analysis is favorable towards farming services business in the Uttar- Pradesh • According to Indian agriculture survey there is need of such farming facilities & services in states like U.P & Bihar the overall market is expected to grow by a total of 35% in next coming years because of the technological equipments.Market Summary • As because of the less technical facilities in farming &due to contract farming by some big companies like PepsiCo ,HUL etc farmers are not getting a handsome return of their hard work & investment. • Instead of investing on other sources of farming farmers are getting advantage from our agency. Market Demographics • The Udyog farming agency consist of the following Geographic, Demographic and behavior factors: • Geographic: • The immediate geographic target is the approx 78% of population of Uttar- Pradesh i.e 8-10 million farmers surrounding communities with a total population of 2.5 crores. • Total targeted population is 90% of agriculture farmers in Uttarpradesh. • Demographics: • Farmers , vegetable market vendors etc. • There is age between 22 & above. • Behavior Factor: • There are officers to provide the best information about farming facilities to the farmers with their need of budget and demand. We try to lookout all the factors of service and attempt all off the needs to the farmers.
SWOT Analysis The following SWOT analysis captures the key strength & weakness within the company, and describe the opportunities facing by “Udyog farming services” Strengths:• Wide Variety of facilities of equipments.• Prices with proper budget planning.• More services with consultancy of increase in quality of crops.• Well trained employees for operations. Weaknesses:• As the new entrants to the market, so it is difficult to built the brand name in the market.• Large Cost associated with start-up business Opportunities:• No competition in the market.• Increase in sales opportunities as farmers are more worried for farming. Threat• Government competition & interference.
MARKET AREA Best opportunity in these location of U.P.• District – Allahabad & Varanasi.• Villages – 220 in these district.• Availability of fertilizers, equipments labors etc. MARKETING SYSTEM: -Private Promotions• Free farming education seminars in different village.• Hoardings.• T.V Ads on Dordarshan & other local channels. Pricing• On basis of target i.e farmers per hectare land.• Budgets are prepared as per need of facilities in certain crop.• Special crop priced as per facilities basis & need of services as per terms of farmers.• Profits are available through equipments rent & consultancy provided.• Insurance as per farmers need & commission as intermediary between them. Operation cost.• Staffing cost – monthly salary & wages to labors.• Fuels in machines.- operation basis.• Servicing of machines- Monthly basis.• Quality control cost- monthly basis.
Financial projections Financial Objectives• Grow the profit margin by 5-10% per year• Increase the new services to gain huge market by 15-16% per year. Capital sources• Personal capital• Friends & Relatives• Bank Loans• Financial institutions Financial Assumptions – 1.5 croes in Rs. (including all fixed & variable cost) Tractors- 4 cost – 20 lakhs Thresher- 3 cost- 15 lakhs Harvester- 3 cost- 15 lakhs Weeding m/c -3 cost – 10 lakhs Plough m/c – 3 cost – 10 lakhs Trailer – 2 cost – 6 lakhs Improved seeds – 5 tonnes cost- 20 lakhs Building & furniture – cost- 30 lakhs Pumps - 5 cost – 4 lakhs Advertisement & promotions cost -10 lakhs Staff salary & wages – cost- 10 lakhs.
BibliographyBooksMarketing Management by Philip kotlerModern marketing by S.D JainLinkswww.wikipedia.comwww.slideshare.comwww.government.inwww.google.com