Elf pgi report final[1]

ECO-LOGICAL FOX
Brief Report: A Real Estate,
Corporate Farming Initiative

Peerless Green Initiatives, Chennai, India
+91 81241 95292
www.peerlessgreen.net
info@peerlessgreen.net

CONTENTS

Synopsis............................................................................ 2

Project Proposal- Agribusiness Corporate Farming......... 3

Project Team..................................................................... 4

Indian Agriculture- Present Scenario............................... 5

US and international Agriculture Scenario....................... 6

The ELF ’Sustainable’ Farming Approach....................... 7

Summary of ELF Plan Initiatives ................................... 9

Important Results............................................................. 11

High Level Commercials................................................. 12

Real Property & Winery detail......................................... 13

Eco-wine-tourism Plan..................................................... 14

Conclusion........................................................................ 16

ECO-LOGICAL FOX - Brief Report: A Real Estate, Corporate Farming Initiative. 1

SYNOPSIS
The Eco-Logical Fox (ELF) Wine Estate Corporate Farming Initiative
(ELF, LLP) is a partnership agribusiness of sustainable practices and durable
methods designed to develop high level commercial returns. Value additions
include renewable energy infrastructure, innovative resource management
and conservation. Further, established Indo-American strategic partnerships
will facilitate the development of valuable technical methods and efficient
cross-marketing of networks to synergize corporate and social dividends.

ELF, Limited Liability Partnership, will begin by acquiring a turn-key Central
California U.S.A. wine estate with solid fundamentals and capacity for scaled
expansion. This property has been identified and fully reviewed by the ELF
Project Team. Upon acquisition, marketing and operations will be intensified
and the estate infrastructure will be made more energy efficient. Furthermore,
ELF, LLP and its strategic partner, Mandala Valley Winery, India, will begin
cross marketing of products. Once fully developed over the course of two years,
the ELF LLP will be the premier example of green agribusiness, ecotourism
and Indo-American commercials.


Project Proposal
ELF, LLP adopts a two prong business strategy (the ‘ELF Plan’) that takes advantage of the synergy between the current
economics of the Indian and California wine market. The two objects are:

1. To take advantage of the buyer-favorable real estate climate in the U.S. through acquisition of an
existing 64 acre turn-key vineyard/winery (‘wine estate’) currently priced $2.1 million USD.
The wine estate currently has 24 acres of vineyards with a yield potential of 98 tons of wine grapes per year and has
a permit to plant an additional 20 acres of grape vine. The estate includes a turn-key
winery fully equipped for production of over 10,000 cases of wine per year. Further,
the property is on the tourist ‘Pleasant Valley’ wine tasting corridor’ minutes from wine
tourist destination, Paso Robles, California. The estate also has a permitted winery
tasting room and banquet room for on site events. Historically, the estate brand has a
long solid history of retail point-of-sale, wine club membership and will provide ELF,
LLP ample opportunity to develop an eco-resort on the estate’s 10 acre wildlife reserve.

2. The strategic partnership between ELF’s project team and Mandala Valley Wines in India provides
the ideal conduit for cross-marketing of wines and innovations.
ELF will create a competitive advantage by target marketing its products to the 4 million U.S. NRIs (2 million of whom
reside in California) as well as estate wine-tourism and promotion of India’s Mandala Valley brand wine. Further,
the wine-consumer niche in India is a ripe marketing opportunity rising 30%
annually. The increasing curiosity of India wine connoisseurs for California wines
allows for ELF to cost effectively transport wine in
bulk for bottling by Mandala Valley and thus avoiding
excise taxation and customs duty thus creating a
competitive pricing and availability advantage. The
cross marketing of the two brands in each other’s
home market will create brand synergy and value.

The proposed ELF Plan is supported by the California Sustainable Winegrowers Alliance, UNEP
Biodiversity Partnership and M.S. Swaminathan Research Institute, all of which through ELF’s
management company Peerless Green Initiatives (PGI)1 are organizations that will provide a cost-
effective technical supply line of valuable resources for ELF’s process implementation. The ELF Plan,
as detailed below, includes energy efficient infrastructure, Co2 sequestration strategies, water and soil management
models, biological pest and herb control, as well as establishment of conservation zones forested with bamboo. These
initiatives create the potential to reduce taxes, provide cost offset rebates and generate carbon certificates that can be
traded on the open market as a secondary form of land use revenue.

ELF, LLP investment involves the acquisition and development of a showcase for-profit sustainable wine estate (Real
Estate Limited Partnership) as an exclusive private undertaking enhanced by tax-saving strategies and limited in
partnership making SEBI or SEC registration unnecessary. In addition to healthy direct return on investment,
the ELF partner will: accrue carbon credit certificates, be entitled to annual timeshare on the California
estate eco-resort, have the pride in ownership that comes with a real estate investment and be eligible
for royalties for IP that benefits India’s National food-security. Lastly, India resident partners, may
qualify for U.S. investor status E1-5.
1
As a value addition, the Partnership will be managed in house by Chennai based veteran green business turn key specialists
Peerless Green Initiatives, a Delaware Corporation. www.peerlessgreen.net. PGI's management and use of sourced networks
will enhance the land value and marketability of production as well as build ecological/social value chains; and eco-efficient
infrastructure. The output of which will be the creation of solid returns and insure partners a verified 'green'
investment. Along with other value additions (summarized in the Sustainable Agriculture Table, below)
ELF is an exciting high commercial, socially responsible opportunity that takes advantage of current
economics in U.S. and India.


Project Team

Project Planning and Implementation:
Peerless Green Initiatives executive team, USA, Chennai
M.S. Swaminathan Research Institute, India, Advisory

Land Acquisition:
Lawyers and California Wine-Business Professionals
John Bergman, Bergman International, USA

Crop Practices and Processes:
M.S. Swaminathan Research Institute, Chennai
California Sustainable Winegrower Alliance, USA

Asset Management:
Dhruv Funani, LEED AIA, Peerless Green Initiatives
David Sands, LEED AIA, BambooLiving, (ecotourism)
Peerless Green Initiatives manager team, USA, Chennai

Financial Management:
Prof. L. Chris Haug, MBA, U.S.A.
*Sunil Ahuja, CA, Peerless Green Initiatives
and manager team, USA/ Chennai

Marketing and Sales:
*Ramesh Rao, Mandala Valley Wines;
Scion Advertising Agency, Bangalore
*Deborah Connelly, Esq, Peerless Green Initiatives
*Nandana Sen/Glenn Crowely, Phd, brand ambassadors


BACKGROUND SOCIAL MISSION:
Agriculture & the Wine Industry in India:
By history, in Pre-Independence India during 1930s nearly 70 % of the population
were working in agriculture and farm related work. Two thirds of the population
was cultivating food for themselves and the other 1/3rd population. The farmer-
consumer ratio was 2:1. In 1950s after independence industrialization started,
public sector companies and other activities created migration of people from
rural to cities. The result was a farmer-consumer ratio of 1:1. The farmer’s burden
has doubled. From 1980s to 2000 the tremendous growth of IT, auto and other
industrial sectors left only 25% of the burgeoning populous dedicated to farming.
Of those, over half were poor and marginalized whose productivity was very
low. Currently, the farmer’s burden of maintaining India’s food-security is six
times compared to 1930s. Ineffective infrastructure, supply lines and
inflation caused by middlemen has left India’s food security critical.
If this scenario continues, India’s small farm groups will lose hope on
agriculture. The need for technical and sustainable farming methods
marketing and processes are a must. It is clear that private industrials
and social investors need to proactively adopt innovative and high
tech farming and management practices in order to capacity build and
innovate for the good of farmers, agribusiness...and most importantly,
India’s food security.2

However 'high tech' commercial farming is not enough. For example, in the
U.S.A., the long term effect of commercial chemical farming has been proven to
result in less nutritious produce than sustainable practice produce.

2
This is where PGI, will add value by bringing the best practices of sustainable farming,
from US to India, through specifically identified projects such as ELF. Like PGI's prior
successful business model regarding bamboo, ELF is poised to become the definitive
sustainable scalable business model of farming by applying a multi-national holistic
approach focused on profit to farm, farmer and consumer alike.


The ELF Plan is as much about market-making as
it is about sustainable agriculture, social initiative
Agriculture & the Wine
and food security. PGI was participant at the UNEP Industry in U.S.A:
Biodiversity Conference on Food Security, in Chennai
India in February 2010, and has been vested in policy Present Scenario
and facilitation-of-process to address poor farming
infrastructure and practices that threaten India’s food
security. Further, PGI’s status in the industry has been
validated by it being chosen to hosting the upcoming
UNEP Biodiversity Convention on agribusiness in
Calcutta on November 29, 2010, which will highlight the
core ELF ethos, namely the coordination and adoption
of global technical methods and efficient supply line
logistics to create healthier crops and will stop grain
from rotting at depots. The ELF eco-business plan was
developed by PGI to demonstrate actual application of
well researched processes and how implementation can
help US and India achieve and maintain food security
and be the bread-basket to the world. UNEP’s
recognition of PGI as a leader in the field, and a
proven designer of sourcing efficient-large scale
agribusiness programs assures that ELF has
available a network of the best and brightest in
India and U.S. to source and procure necessary
efficiency methods and infrastructure.

As such, India’s newly developed wine industry
can provide a platform example of the potential of
modern practices and effective logistics. Further,
the American and Indian ‘wine-lifestyle-
American industrial farming has proved to be a benefit
consumer’ drink wine for the health properties,
through the technical advancements of processes, but
in moderation as a quality accompaniment with
has been blighted through the over-use of fossil fuel
good food, provides an excellent opportunity for
infrastructure and chemical pesticides, poor land water
marketing product and social agenda. Market
trends demonstrate wine is an acceptable management. The ELF Plan's focus on the adoption
beverage in India with consumers bullishly of responsible agribusiness practices and processes
searching for quality domestic vintages and (popular in the U.S.) provides an opportunity to
high price-point California brands. import India's traditional indigenous farming
knowledge, wisdom and cost-efficient processes.
Further, the enormous pool of research and
institutes in India dedicated to efficient and eco-
friendly farming, is a valuable commodity that
US farmers and agribusiness are ready to learn
and adopt. The Indo-American cross pollination
of new and old tech is an area the ELF Plan will
efficiently source and deliver to the market. As
a result, successful processes can be converted
into royalty generating intellectual property
and proprietary process models. Not to be
understated are the enormous social benefits
of synergy that a merged plan of sustainable
practices, clean technology and validated
traditional wisdom will bring to Indo-American
food security.


Specifically the California wine industry has proved
resilient despite economic down-turn. Despite the
The ELF Sustainable
modest wine market dip of only 2% since 2008, the well Farming Approach:
known industry barometer, Sonoma County Wine
Auction 2010 raised a record breaking USD1.3 Ecological-Efficient-Economic
million in one weekend. A full FAQ regarding the details of the ELF Plan
is available to serious investors via request at
In juxtaposition, the 2007-2008 real estate town-turn has info@peerlessgreen.net. Preservation of the world's
created an immediate buyer's opportunity. Californians food security requires science and processes to be
trimmed their portfolios by shedding their 'get-away' implemented and communicated to establish nourished
wine estates for up to 60% below State assessed land populations and viable agribusiness while protecting
values. Therefore, the perfect confluence of a the ecology from further climate change. One of the
strong wine industry, strong social initiatives and most critical is India where the burgeoning population
easy market entry through acquisition of wine is outstripping food availability. Viticulture, like other
estates makes this a 'ripe' time for action. agribusiness, entails the production of high quality food
products from agricultural systems that rely upon more
natural approaches to crop nutrition, pest and disease
WINE INSTITUTE WIRE: July 2010: SAN control, and management of natural resources such as
FRANCISCO – During the recessionary soil. The principles of sustainable viticulture include the
2009 economy, California vintners shipped development and maintenance of good soil structure,
467.7 million gallons (196.7 million cases)
fertility and biological activity, and the avoidance of
many harmful viticultural chemicals. The ELF Plan
of California wine to the U.S. wine market will meet this challenge by adopting a wide range of
in 2009, up a modest 0.2% compared to the acceptable durable techniques that are safe and promote
previous year’s volume, according to wine better crop yields.
industry consultants Gomberg, Fredrikson
& Associates in Woodside. Retail Value
Down 4%, but Volume Grows 2% in
the U.S. Wine sales to the U.S. from all
production sources— California, other
states and foreign producers—grew 2%
to 767.4 million gallons (322.8 million
cases) in 2009. The 467.7 million gallons
of California wine shipped to the U.S.
represented a 61% share of the U.S. wine
market. The statistics suggest that despite
the economy, wine consumers are keeping
a bottle on wine at the dinner table.


The easiest answer to the World’s food security Cooperatives: An often overlooked benefit of
problem is by making farming activity profitable to going green are the abundant available incentives
the farmer and environmentally friendly. Assuring offered by the U.S. State and Federal Government,
that processes coexists with the natural environment is intergovernmental organizations and NGO grants.
known as ‘harmonization’ of business and environment. This is a specialty area of management firm PGI and
Examples are conversion to renewable energy sources will result in tax breaks and rebates for setting aside
(wind, solar, bio-fuel) carbon sequestration, cost conservation land, reducing CO2 emissions, employing
efficient biological methods of pest control and soil and sustainable processes, promoting food security and
water conservation. reducing grid dependency. The result: the ELF, LLP
will enjoy multi-year tax holidays that will discount
for example the annual USD17,500 property taxes;
PGI’s inclusion in a broad range of cooperatives such
as the California Sustainable Winegrowers Association,
UCDavis Wine Institute, Indian Wine Academy, UNEP
and WOOF (Work on Organic Farm Association) and
strategic partnerships with MS Swaminathan Research
Foundation will pay dividends by sourcing high tech
consult and implementation of sustainable farming
on a low-cost, no-cost basis. This has the effect of
reducing overall labor costs by 50% or more per year.
(USD15000 per year, to less than USD7000.)

The current media driven consumer perception of
sustainable farming and renewable energy/ resource
management has reaped many rewards for businesses
in U.S. and India. The less seen side of commercial
sustainability is that it creates efficiencies and
cooperatives that quickly offset cap-ex of sustainable
strategies and energy infrastructure. For example, the
California wine estate targeted for ELF, LLP acquisition
has historical annual overhead of USD102,796. This
figure can be drastically reduced through cost cutting
services, labor and chemical inputs through the
implementation of: renewable energy infrastructure,
cooperative alliances and bio processes.

Renewables: The acquisition property consumes
USD14,000 in annual energy costs. This can be be
reduced by 2/3 through the use of non-grid dependent
energy sources such as solar photovoltaic panels, solar
water heating, bio-fuels and low-watt energy efficient
lights, generators and pumps.


Bio-Controls: The use of costly fertilizers and chemicals to control
unwanted herbs and pests can be eliminated and replaced with biodynamic
and biological predation methods which have been proven by USDA
to increase the quality of crops, resulting in lower cost of farming and
higher value at market. For example, using the revived 'traditional
grazing herd method' will keep back weeds and in turn fertilize will
can cut cost from USD10,000 per year to a couple thousand dollars;
and micro-injector fed organic chemical preparations such as neem and
enzymes to control pests and fungus reduces pest control costs from
USD50 per acre to USD18 per acre.

All told, annual overhead will progressively decline to
USD65,000-79,000 through a conservative two year plan of
implementation of processes and efficient infrastructure.

Why ELF, LLP uses a Wine Estate to
promote Food Security
Wine estates have proven a stable industry and provide the perfect
platform to overlay sustainable farming. The wine industry had
historically respected age-old elements of efficiency and ecologically
responsible farming. Many of the 'new' farming processes were applied
and perfected centuries ago by winegrowers. The wine industry and its
consumers currently embrace the adoption of socially and ecologically
responsible processes and practices. As such, the ELF Plan can rapidly
create goodwill and image as a pinnacle of neo-modern farming. ELF,
LLP will apply the proven California Sustainable Winegrower Alliance
method of sustainable winegrowing employing processes sensitive to
the environment (Environmentally Sound), responsive to the needs and
interests of society at large (Socially Equitable), and are economically
feasible to implement and maintain (Economically Feasible). The
combination of these three principles is often referred to as the three "E's"
of sustainability.


Below is a Summary of ELF Plan Initiatives
Sustainable
Target
Agriculture Need Description ELF Plan of Action
Resource
Service Area
• Use of bamboo and jatropha as erosion barrier and marketable co-crop
• Mixed and certified elite grape varieties and complementary co-crops/
* Erosion Control
ground cover to cycle nutrients and support natural disease resistance.
Soil *Soil Protection
• Sheep livestock weed- to- fertilizer cycling
*Nutrient Protection
• 'Sacred' conservation groves, nursery and bio-pest management using neem
and other proprietary traditional mixes
• Rainwater harvesting and surface water channeling to reduce reliance on
groundwater
*Water Conservation • Energy efficient gravity fed micro-irrigation to reduce consumption and
Water *Water Cycling waste
*Water Harvesting • 'Sacred' tanks of surface water storage and cycling of gray water; plus
bamboo shade forest for creation of cooling micro-climate/ drought tolerance

• Use of bamboo biomass, jatropha bio-fuel and solar renewable energy
Ecosystem systems to meet estate energy requirements.
Services • Use of alternative fuel and renewable fuels to obtain trade-able Carbon Offset
*Carbon Sequestration
Credits
Air *Carbon Reduction
• Use of bamboo reserve as carbon containment vehicle to obtain Carbon
*Zero Fossil Fuel
Sequestration Credits
• Above will be used to design and implement Zero Carbon/ Carbon Negative
farm-to-table produce. (IP)
• Onsite micro-processing of jatropha inter-crop as fuel for machinery and
transportation
• Use of solar power sets to offset energy requirements of farming and
*Alternative Fuels processing
Energy *Renewable Fuels • Use of appropriate technology building design and traditional building
*Fuel Efficient Systems methods like cob and earthen brick that is efficient, climate appropriate and
disaster resistant.
• Use of high efficiency solar cyclonic pumps and gravity feeds for water
management.
*Crop variety
*Improved processes of
communication and feedback to battle
• Strategic ties with MS Swaminathan Research Foundation and Mandala Valley,
climate change and risk
coupled with California Sustainable Wine Alliance to create communication
management
and tech network approach to agricultural processes, security and
*Community based management and
management.(IP)
Farmers and crop portfolio for security and risk
• Value added participation in Alliances and Farm Clubs to develop transferable
Farming tolerance
quality community management practices and market presence of small
*Transfer of modern technical
farmer. (IP)
methods of farming to developing
Social Services • Eco-tourism to promote consumer understanding and appreciation of
nations adoption of efficient age-old
sustainable farming.
traditional farming wisdom to
reduce reliance on chemical farming
practices.
• Use of 'breathable' flex tanks for the transport and storage of produce and
*Quality, hygienic, nutritious produce prolonging produce shelf-life.
*Logistical efficiency and integrated • Use of PGI's co-op supply lines and integrated logistics for domestic and
supply-line management to avoid international produce marketing
Consumer
crop rot loss • PGI Marketing plan to raise awareness of health and quality benefits of
*Co-op and strategic alliances to sustainable farming
assure • PGI eco-tourism plan will draw on public interest in 'green' industry; 'work
on organic farm' volunteers can learn while offsetting labor costs.
* Millenium Goals of UN: • PGI's UNEP/ FAO network will promote the ELF program.
*Cooperation to build capacities for • PGI's International strategic partnerships with Agro-Farmers Association,
food and agriculture resources and risk Swaminathan Research Foundation and Sustainable Winegrowers Alliance will
Eco-Policy
management promote dissemination of tech and traditional know-how
Building International
*Strengthen the dissemination of • ELF-Mandala Valley bilateral relationship will be a high media exposure
Services knowledge, appropriate technology showcase relationship of 'real' cooperation
and tools to improve management • PGI policy team with in-roads to India, US and UN can promote and lobby
practices. policy supportive of the agenda


Thumbnail Summary Inputs and Capital Expenditure:
Wine Estate Acquisition: USD 2,100,000 (INR 9,24,00,000)
Capital Improvements (Y1/Y2) USD 350,000 (INR 1,54,00,000)
x-Marketing, Management, Overheads: USD 150,000 (INR 66,00,000)
Total Investment Capital Required: USD 2.60 million (INR 11.44 crore)

Thumbnail Summary of 5 Year Outputs:
Currency Year 1 Year 2 Year 3 Year 4 Year 5
US Dollar 5,63,500 4,85,000 12,105,00 20,66,000 40,69,000
Indian Rupee 2,47,94,000 2,13,40,000 5,32,62,000 9,09,04,000 17,90,36,000

(*Please request full prospectus for plan details, necessary re-investments and itemization
of annual management and professional fees: ELF proforma expects break even in Y3;
with Investor Exit Options at Y5, Y8 or Y10. ELF Partners are paid annually through
distributions on profits and structured return of principle; ELF partnership includes time-
share rights to the residence eco-lodge) Based on proforma the annual return on investment
averaged over 5 years will be 18% -22% per year.

Important Results:
The tables above illustrate the deep social and ecological impact potential of the ELF plan.
However, the true win-win is the creation of a highly cost efficient and profitable business
basket of goods and ecological-social services. PGI, MSSRF, UNEP and CSWA/UC Davis
University have demonstrated that the use of sustainable practices makes a wine estate
more secure, more cost-effective and more profitable through healthier produce that
attracts higher prices at market.3 As an example, the U.S. Government (USDA) has
adopted a policy that rebates 60% of the cost of converting vineyard farms to solar.
Further, a report funded by the National Fish and Wildlife Foundation (NFWF) reported
that 101 California winegrowers who have adopted the sustainable management
practices have more successful wine-businesses as a result.4

3
Representative results have been published in "Reducing Risks through Sustainable Winegrowing:
A Growers'' Guide," funded by the U.S. Department of Agriculture, Risk Management Agency. The
guide demonstrates that sustainable methods reduces risk and can be an effective management
strategy to enhance the long-term viability of businesses.

4
(Complete survey results are detailed in the report titled, "Understanding Adoption and Impacts of
Sustainable Practices: Sustainable Winegrowing Program Participants' Survey," available online.)
These methods and the further development of processes enhanced though Indian traditional
indigenous knowledge provided by strategic partner M.S. Swaminathan Research Foundation,
coupled with PGI's record of international standard business models and sustainable planning,
allows for the in-house creation of valuable IP that will have enormous social impact with worldwide
influence. For an example see http://www.rncos.com/food%20Markets.htm whose industry reports
fetch $800USD per copy.


DETAIL OF THE ELF PLAN:
High Commercials:
“Healthy financial returns” can be a better
option than mere High Commercials

Green Plan Overview

Typically a wine estate's highest cap-ex cost is winery
infrastructure cost. One of the true values of the California
estate to be acquired is that the winery is fully developed
to the scale of the vineyard output of 10,000 cases per year.
This is a major cost savings, developed by the seller and an
immediate benefit to ELF, LLP. The ELF Plan can therefore
focus on the high-return improvement and expansion of
the existing 43 acre vineyard while reducing infrastructure
overhead and aggressively marketing the brands that will
convey with the sale. Below is a overview of the estate:

• The current 23 acre plantation currently yields enough to produce 1000 cases annually with each case selling for
USD200-300 (INR 8800- 13,200) per case. In order to take advantage of the winery potential during the two years
required to scale the vineyard to its potential 43 acres, ELF LLP will sell existing stock, procure bulk grapes and bulk wine
to produce revenue. As such, turnovers are assured and will offset much of the cost of vineyard expansion and renewable
energy infrastructure conversion. Once complete, the wine estate will be fully integrated at full capacity in year 3.
• With expansion of the vineyard to 43 acres, the harvest will begin yielding 150-200 tons of grapes annually, sufficient
to produce 10,000 cases of wine per year. The capital improvement required in the vineyard would be approximately
USD350,000 (INR 1,54,00,000) over the course of two years, much of which can be implemented through the
reinvestment of wine inventory included in the sale.
• Also the ELF plan includes greenhouse development to host UC Davis 'elite' certified shoots, which shall be a source of
revenue through sale to other vineyards, and will be a ready supply of premium quality vines and accordingly premium
caliber wine. On site greenhousing is a cost efficient method of shoot procurement, quality assurance and security.
• The ELF plan includes using the management team's deep industry networks, policy experience
and skillset to have the estate certified by the Sustainable Wine Alliance, USDA, FAO and US Green
Building Counsel “LEED” criteria. These certifications have been shown to increase the desirability
(price point) of the wine product will encourage its development as a eco-resort destination. The
secondary benefit of meeting these criteria is eligibility for incentives that can reduce the estate's
current overheads, offset costs of certification and lend an elite channel of marketing and goodwill.
These all equal increased product quality and consumer value addition.
• A value added of operating a sustainable farm is the ready availability of skilled eco-
activists, 'Woofs' (work on organic farm) and farming-clubs- who volunteer during pruning,
planting and harvesting seasons. This network advantage is a major offset to increasing
labor costs by crowd-sourcing the work to green business activists. The implementation
of carbon reduction policies and sequestration through established 'sacred spaces' on the
estate and a bamboo plantation will protect the vineyard, support micro-climate, offset
overheads by up to 10% and create tradeable carbon certificates. The integration of
biofuel and renewable sources of fuel and energy promises to dramatically reduce on site
fuel costs and carbon emissions.
• The implementation of carbon reduction policies and sequestration through established ‘sacred spaces’ on the estate and
a bamboo plantation will protect the vineyard, support micro-climate, offset overheads by up to 10% and create tradeable
carbon certificates. The integration of biofuel and renewable sources of fuel and energy promises to dramatically reduce
on site fuel costs and carbon emissions.


Real Property & Winery Detail:
The negotiated acquisition price of $2.1 million, includes a 3,000 sq foot residence/office/banquet hall, a 2500
sq foot state-of-the-art winery, furnished tasting room, furnished banquet room, wine lab, and all modern farm
equipment. (See Inventory, attached.) The property is improved with 24 acres of trellised micro-irrigated vine
and an additional 20 acres, prepared and trellised ready for planting. Included is a 3000 sq foot wine cellar
with inventory worth USD130,000 and a cask inventory of 700 cases in 70 high quality French Oak barrels.
All accounted the property and asset value of this property is easily USD4 million. 5

In order to reach maximum potential of 4+ tons per acre a number of vines will need to be replaced with new 'elite'
cultured root stock. This will be phased in over the course of two to three years. The benefit of this will be the
procurement of high quality, certified disease resistant root stock. Due to PGI's networks they can be procured at deep
discount from the Sustainable Wine Institute at UC Davis. The total two year cost of replacement will be USD44,225,
and contemporaneously, an additional 20 acres will be planted on prepared and trellised land, bringing the matured
annual harvest of at least 150+ tons, which would allow the winery to operate at its full potential of 10,000 cases
per year. Assuming a sales distribution of 60% retail and 40% wholesale, this would gross USD4.2M annually (This
does not include the value appreciation of the present cost per case of USD 200FOB wholesale. The viticulture of elite
varieties has been proven to increase wine quality and accordingly demands a higher price. The ELF marketing plan
includes product value addition that should increase case value by 25-50% particularly by bulk shipping to India and
economic upturn in U.S. Likewise the supply-demand shortage of California wine in India supports the plan of shipping
bulk wine for bottling and sale by Mandala Valley at a premium price-point.

5
The potential of this investment property is evident when compared against other geographically proximate farms: A forty acre
farm (with no winery) and sixty acre farm (with winery and resort) that have been fully developed and are on sale for USD4M;
Therefore, the property targeted for acquisition- 64 acre turnkey wine estate with 24 acres under vine, 20 acres ready for planting
and a state-of-art winery and tasting room, is well priced and has incredible untapped potential currently, in the medium and long
term. See Exhibit 1.


Unique Cross Marketing/ IP marketing:
Perhaps one of the most unique opportunities of ELF is it strategic partner 'sister estate' Mandala Vineyard in
India which shall be the conduit not only to the cross-marketing of wine but the promotion of IP implementation.
It is a strategic tie that can bring opportunity for revenues derived from each others' markets. The India wine
market has grown three fold in eight years, and according to a detailed market study funded by U.S. and Indian Wine
groups, showed the India wine consumer is showing interest in the elite California varieties . Further, the U.S. is
home to 4 million NRIs, over half of whom live in California. As such, the cross-importation of the sister brands
can be exploited through the efficiency of this strategic alliance. The use of eco-friendly Flex-tanks can allow for
cyclical shipment of California and India wine at a fraction of the cost of cask shipping, and with no dead-heading. The
cross-marketing can further target cross-tourism and as a conduit for valuable transfer of valuable proprietary
technical methods (TOTEMS) and sharing of traditional indigenous knowledge (TIK).

Eco-wine-tourism Plan:
Not to be under-estimated is the the secondary revenue stream that can be derived from the development of the estate
as ecological wine-tourism resort. For example, the State of California has passed legislation this year for providing
for USD600,000 (INR 2,64,00,000) in marketing a wine-tourist 'tasting corridor' in Central California ( the acquisition
wine estate is on this route.)

P A S O R O B L E S W I N E C O U N T R Y
SAN LUIS OBISPO COUNT Y

SAN MIGUEL
PASO ROBLES AVA
S Lake Nacimiento
CHOLAME
A
N
T
Hearst Castle A
SHANDON

Produced by Paso Robles Wine Country Alliance • Map by Mike Bobbitt & Associates, www.mikebobbitt.com
L
U PASO ROBLES
C
CAMBRIA I
A
TEMPLETON
M CRESTON
O YORK MOUNTAIN AVA

U ATASCADERO
N Sa
lin
T as
R
A
iv
er

PACIFIC OCEAN I
N SANTA MARGARITA
Paso Robles AVA
MORRO BAY
S
York Mountain AVA
Vineyards

Paso Robles Wine Country is ideally located along California’s Central Coast. Situation ten minutes inland over
the Santa Lucia Mountains, the region provides optimum growing conditions with warm days and cool nights. The
entire AVA is 612,308 acres of which approximately 26,000 acres are planted to wine grapes. Benefiting from the
state’s largest diurnal temperature swing, wine grapes get fully ripe with balanced sugars and acid flavors. Vineyards
are located throughout the region in the area’s various microclimates suited to grow more than 40 wine varieties. The
Paso Robles and York Mountain Viticulture Areas (AVA) were
established in 1983 as recognized and defined by the Alcohol
and Tobacco Tax and Trade Bureaus (TTB). For more information
about Paso Robles Wine Country visit pasowine.com.


The property can accommodate tourists at it fully stocked
tasting room and banquet hall. This can be built upon through
the establishment of an eco-resort. This will increase on-site
retail point-of-sale at the winery tasting room and is an efficient
source of revenue that will be enhanced further through the
development of an on site ecotourism resort. Eco-winery resorts
are frequently featured in internationally recognized Wine
Spectator magazine. As such, with a modest investment of
USD200,000 (INR 88,00,000) would allow for the addition
of a boutique cluster of pre-fab International Building
Code certified bamboo cottages through PGI's strategic
alliance with Bamboo Living and internationally renown
LEED architect David Sands. This value added feature
will tap the local lucrative ecotourism market which has
proved to be recession-proof and continues to show 90%
occupancy rates at 350-500USD (INR15400 – 22,000) per
night, per cottage.

Finally, as part of the partnership management fees to PGI, the acquired property will be target marketed and policy-
promoted by the PGI marketing and policy team through its deep legal, market and policy background which, due to
California's progressive incentives for CSR (corporate sustainability and responsibility), will net real incentives and
brand goodwill that will further offset overhead and promote market presence and price-point value development.
Internationally publicizing brand Corporate Sustainability and Responsibility (CSR) will create goodwill and
promote the estate as a premiere ecotourism resort destination. In fact, PGI's current CSR has already been
internationally lauded for its visionary proactivity and project successes. Further, California State's earmark of
USD600,000 in 2011 to promote wine tourism marketing of Central California Wine Tourism (which is responsible for
USD1 billion annual turnover) is an enormous untapped value addition and further recognition of the emergence of the
area as a premium wine destination.


Conclusion:
Mindful of its core social interest, the ELF Plan will publicize its unique distinction as a bi-lateral Indo-
American cooperative designed to promote agribusiness and food security. A committed and integrated
approach like ELF, LLP can bring applied IP and business processes for adoption in the broader marketplace.
ELF is for-profit by design. Only through demonstrating sustainable can equal profits will the industry follow the
ELF lead. The developed ELF model and the resultant agri- intellectual property (AgIP) will enter the billion dollar
international AgIP industry and will derive enormous social dividends for the food security of India, U.S. and the world.
The rarity of programs that bring R&D into commercial application- along with strategic alliances with USAID funded
M.S. Swaminathan Research Foundation and the equality driven policy of ELF woman-members like CEO Deborah
Connelly and brand ambassador Nandana Sen (daughter of Nobel Prize Laureate Dr. Amartya Sen)- sets the stage for
a strategic competitive advantage through bilateral development of efficient farming practices, social sensitivity and
availability of grants and incentives.

Thank you for the review of this brief description of the ELF program and for a full prospectus, contact your referring
broker. This is a once-in-a-lifetime opportunity to have a U.S. investment footprint in prestigious California wine
county real estate; taking advantage of favorable market factors in U.S. and India; and most important doing
well for your Country and the World.
Jai Hind! And long live the partnership between India and the United States.

Eco-Logical Fox: Doing its part to realize the potential of the U.S.-India alliance as detailed in President Obama and
Prime Minister Singh's Historic November 2009 MOU to promote: “The need for substantially scaled-up resources
to support migration and adaption in developing countries... of measures for promoting technological
development, dissemination and transfer and capacity building that will strengthen the world's ability to
combat climate change.”
And more recently by President Obama to India's Parliament, November 8, 2010:
Together, we can strengthen agriculture. Cooperation between Indian and American researchers and
scientists sparked the Green Revolution. Today, India is a leader in using technology to empower farmers...
And the United States is a leader in agricultural productivity and research. Now, as farmers and rural
areas face the effects of climate change and drought, we'll work together to spark a second, more
sustainable Evergreen Revolution.


Elf pgi report final[1]

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