This document provides a business plan for growing oyster mushrooms on 1 acre of land. It details the initial investment needed, including costs for temporary sheds, equipment, and one production cycle. The total initial investment is approximately Rs. 606,500. Each subsequent 60-90 day production cycle costs around Rs. 90,000-130,000 excluding initial costs. The projected returns are around 195,000 rupees for the first cycle, with returns increasing to 50% in the second cycle and 60% from the third cycle onward. The business plan also outlines plans for marketing, production expansion, distribution centers, sales centers, and cooking units to grow the business over 5 years on a national and international scale.

1. Project Report for Mushroom
Oyster Mushroom
Designed By: Adworld
Adworldindia.in

2. Why Oyster Mushroom
• Cultivable in different weather condition.
• Suitable for Indian weather condition.
• Profitable and sellable easily local and
International market.
• Can be made into different type of end
products like souse, pickle, dried and etc.
• Assured returns and healthier values.

3. Initial Investment
• One time setup cost for sheds and climate
control systems and less operating cost per
life cycle.
• High returns from 3rd cycle and continued.
• Easily availability of raw materials at low cost.
• Accesses of sales of mushroom varies in
different levels.
• High Nutrition value.

4. Project Cost - Oyster Mushroom (1000 kg/cycle) Plan for 1 Acres
A Fixed costs (Amount Rs.)
1 Temporary Shed :20'x12'x6'(240 sq.ft.) - 3 Nos 2,25,000
2 Equipments 90,000
a. Racks 60,000
b. Bamboos for racks 9,000
c. Knap sack Sprayer : One 12,000
d. Vessels, heating equipment 1,50,000
f. Misc.(for knives, trays, rope etc.) 5,000
Sub-total 5,51,000
B Operational cost (per cycle) Month
Rental & Salary 38000
Paddy Straw 3500
Cost of bags 4000
Cost of pasteurisation 5000
Cost of Bavistin & Formaldehyde 2500
Spawn cost 6000
Labour Charges 22500
Fuel / Power cost Lumpsum 4000
Sub-total 85500
C Total Cost (A + B) 6,06,500

5. Projected Investment & Returns
• A cycle of 60 – 90 days investment Approx 90K
to 1,30K except OTSC.
• Yield from 240 sft x 3 chambers 3 Tones, 2
Tones can be sold fresh packet @ 60 =
1,20,000/-
• 1 Tone can be sold either dried or made into
other products @ 75 = 75,000/-
• Expected return in 1st cycle = 1,95,000/-

6. % of Returns
• 2 cycle – 50%.
• From 3rd and 4th cycle - ~>60%.
• Increase production capacity every year by
25%.
• Expected returns from 2nd year 70 – 75%
• Setup Kiosks and cooking center from 18
months about 10 center to increase business
and profit margin.

7. Business Model
Business Plan
Marketing Plan
Production Plan
Distribution Center Sales Center Cooking Units

8. Business Plan
Investor / Banks
Partnering with
investors on profit
sharing.
Necessary Subsidiary
From Organization and
Govt.
Opportunity to cater
nutritious food @
affordable rate.

9. Marketing Plan
Hospitality Hotels
Distribution
centers
Export
Markets
Retail
Outlets
Branding
Products
Pan India
Domestic
Cultivatable
Products
International
Presence

10. Production Plan
Small / Medium Scale
Medium / Large Scale
Increase Production plant Pan
India
World Class Production
Capacity

11. Distribution Center
• Authorized distribution center trained and
qualified to sell mushroom both fresh and
other products.
• Proper Branding with necessary License.
• Supply Chain Management for food
processing / logistics.
• Quality and quantum delivery models

12. Sales Centers
• Sales centers to be indentified at different
locations Pan India.
• Should be able to cater Pan India with 5 years
of launch.
• Necessary promotional materials and
advertisements to get notified.
• Modification and additional products of
different variety of mushroom to be identified
and added.

13. Cooking Units
• Necessary cooking units to be indentified
either in-house or offshore to cater the
marketing requirement.
• Keep altering the capabilities and
requirements as and when possible.

14. What’s in Store
• The details mentioned above or basic bench
mark the complete report will be shared as
and when required.
• We would like and move to different varieties
of mushroom of nutritional and medicinal
value as and when required.