HYDROPONIC VEGETABLES BOT GROWTH PLAN

We shall translate your first investment in the development of 25 acres.

 

Introduction

Climate change, land eradication, draught and gradually increasing water shortage problems have emerged as a multi reasoning sever AGRICULTURE / Vegetables growing problem in Pakistan in recent years. Despite the agrarian country present fruiting is unable to fulfill domestic demand of people and forced to import all vegetables items against Dollars. All major Vegetables products are encountered with different growing problems in Pakistan. High production cost, low production, per harvesting losses, and profitability forced farmers to grow cash crop. Which is resulted low production, increased import bill and gap between demand and supply every year. Dua Enterprises has familiarized the modern Hydroponically Vegetables growth system. Greenhouse, Hydroponics, Aeroponics, Aquaponics and Drip irrigation systems are able to cater present production glitches and able to the tournament with future challenges with goalmouths to fulfill local market demand local industrial, processing and export of Vegetables.

The proposed Hydroponic Vegetables growth business, the plan is the pedestal on Build – Operate and Transfer(BOT) standings, the initial investment on the development of 1 hectare will reinvest in the development of others 9 hectares (25 acres) in 10 years, with the assistance of infrastructure building,  management in production and sale support in the local and international market. Besides that facilities, the owner will get a 12 % profit share during the execution of the plan plus emerging profit share after 3 years on GP on regular basis. After the development of 25 acres, technology will transfer to the owner of land in 10 years. Similarly, if the landowner is required further consultation from Dua Enterprises can be signed on mutually agreed terms and conditions.

• To develop hydroponic vegetable farm is designed for all-season production, sustainable growth, and consistent profit on build-operate and transfer bases.
• Personal the initial investment or bank loan (on banking term and condition) with payback plan.
• Profit share (12 %) every year and plus emerging profit share after 3 years during execution period.
• Climate control greenhouse hydroponic production on the mutually agreed medium of growth, Aeroponics, Aquaponics growth in zone 10.
• Projected start-up costs:The first investment is PKR 57,598,001 cost split into a variable, 3 years production, and fixed cost. Climate control first greenhouse and fix a one-time cost.
• Profit in years on first investment is PKR 143,691,035after 10 years.
• 12 % profit after every year on revenue: PKR 3,286,790
• 12 % profit share on revenue after 6 years of plan PKR 3,286,790.
• 25 acres greenhouse orchard

 

KEY OF BUSINESS PLAN: – Not only Agriculture but agriculture as a business.

Further few paragraphs are going to narrate agriculture business plan based on Build-operate and transfer basis with a clear objective that Agriculture/Vegetable production is not in certain “CONDITION” under calamite threats and input & output uncertainty and rejection fear, but Fruiting for business, sustainable growth and profitability. Small landowner to large landholder can be secured their Fruiting production and profit and become a model for new Agriculture Entrepreneurs for a better future.

 

 

EXECUTIVE SUMMERY

Climate Change and the introduction of new technology in agriculture have changed old traditional cultivation. The modern cultivation system is providing sustainable growth and consistent profitability. Climate control Greenhouse hydroponic vegetables production system is recognized as the most modern growing technology in the world today. This technology is to enable bulk production in all seasons. This is most economical, water-saving, pest less, and unlimited from weather threats. A vegetables will grow in hydroponically soilless system. This production system contributes a 15-25 % increase in fruiting and 35-40 % water saving as compare to the present irrigation system. 

The proposed project is based on the Construction of infrastructure, Management in production, and Sale support on a BOT (build-operate-transfer) basis of a medium-large scale of 25 acres. Land transform into modern production Farm.  This climate-controlled farm will construct on 25 Acres with first initial investment and transfer within 10 years to the landowner. The first initial investment will cover construction 1-hectare climate control greenhouse, plantation and 2 year operational cost, the generated revenue will reinvest in the development of others (9 hectares) 22.5 acres in 10 years and investors will get a 12 % profit every year on revenue and after 3 years will get regular agreed profit.  In the proposed Climate control farm project will ensure the growth of all Vegetables grows in zone 10. 

Dua Enterprises will assist in the construction of infrastructure, provide management in production, and contribute to sales support in the local market and export to GCC and Central Asia other countries. Complete devotion to the best agronomic practices is critical to the success of this project. Therefore, technical knowledge training of concern staff and experience of the entrepreneur/support people is also a key connection of success, sustainable growth, and consistent profitability. 

The present economic condition and projection of economic growth up to 2.4 % of GDP in manufacturing large scale and small scales industries, dollar fluctuation impacts, and duty and taxation the ratio on imports, registration efforts on trading and services sector are becoming a barrier in business development. The Agricultural/ fruiting is the only marginal taxation FREE area of business at present. Government support programs in agriculture area, the low-interest rate on loaning facilities, present demand and supply gap and present import volume of 4 $ billion are encouraging factors, these supportive pointers are providing a chance for progressive farmers and business institutions to invest in the agriculture sector and fulfill the demand and supply gap and export their agriculture product to GCC, Russia, central Asia countries and tailor the opportunity around CPEC. China. In that favorable prospective agriculture/fruiting will be played a locomotive role in business as a profitable venture. 

• Smart Agriculture:without exiting potential climate change threats and challenges of food security.
• Mission:Not only Agriculture, But Agriculture for business and profitability.
• Solution:Climate control orchard with world best techniques and technology.
• Market focus:Local and international market needs and direct for industrial, processing industry and pharmaceutical needs.
• Competitive advantage: 4 season cropping, early harvesting and early access to the market.
• Ownership: Landowner / investors/ bank (if bank loan is there)/consultant firm.
• Expected returns:Ever year 12 % profit share and after 3 years emerging revenue share.

VEGETABLES PRODUCTION

According to Agricultural Statistics, the area under cultivation of fruits in Pakistan is about 875,000 hectares. Out of which we are getting 7,200,000 tons of fresh fruits annually. Our average production is about 8.23 tons per hectare and has a 12 % share in Agriculture GDP,  but according to one study  fruits  production in Pakistan is very low,  which is very low as compared to advanced countries i.e. 20-25 Tons per hectare and only exporting 10- 20 % of its total production.

Agriculture is the second-largest sector, accounting for over 21 percent of GDP, and remains by far the largest employer, absorbing 45 percent of the country’s total labor force. Nearly 62 percent of the country’s population resides in rural areas, and is directly or indirectly linked with agriculture for their livelihood. One of the reasons of migration from rural to urban areas is the lack of employment opportunities for small farmers, since the opportunity to work on farms is diminishing due to mechanization and technological development. Non-availability of irrigation water is hindering expansion. There are a large number of other factors, such as the traditional farm management practices, non-availability of infrastructure, lack of funds, absence of marketing channels, high degree of pest and disease problems, lack of accurate information on pesticides, high cost of irrigation, shortage of labour, lack of access to institutional credit and loan, and the non-availability of inputs, which discourage production.

These rapid technological changes are affecting farm practices. In such an era, the need to help landless or small farmers is increasing. Information on the cropping system and employment opportunities need to be generated for them. A suitable option for them is growing vegetables as these are short-duration crops fetching higher returns. Expanding their cultivation can provide essential dietary nutrients at low prices and reduce unemployment, which in turn would reduce rural poverty.

Although vegetables has very important place in Pakistan diet and providing proteins, minerals, and vitamins to human body and nutrition. But despite that fact the daily intake is low, it is being about 100 GRMS as compared to the recommended consumption of about 285 GRMS person in a day.

At present vegetable are cultivated in 0.53 million ha, but it is unable to fulfill local demands and resulted in shortage, unavailability and forced to import to fulfill the gap. Industrial demand and processing industry heavily dependent on imported vegetables. Minor crops including oil seed, pulses and vegetables account for 12.4 per cent of the value-added in overall agriculture.

 

IS VEGETABLE CULTIVATION PROFITABLE IN PAKISTAN

Traditional farmers are making around 100000 rupees profit per acre per season and that too if you get a really good and bumper crop every time. So in 1 year you will make hardly 3 million rupees back on 10 acres of land. So it will definitely take you 3 years minimum to breakeven point.

Vegetables Market in Pakistan is expected to register a CAGR of 5.9% during the forecast period of (2020-2025). Pakistan has a wide range of agro-climatic conditions which is allowing the country to produce a wide variety of tropical and sub-tropical fruits and vegetables. According to FAO, vegetable production accounts for 5.4 million tons where 40% of production is only attributed to onions with 2.1 million tons of production followed by tomatoes, carrots, and turnip.

Pakistan’s exports of fruits and vegetables witnessed a modest jump of 12.5% during fiscal year 2019-20, which fetched $730 million in precious foreign exchange. According to the latest statistics available at the Pakistan Bureau of Statistics (PBS), vegetables recorded a substantial increase of 28%. Export of vegetables generated $300 million for the country.

Grabbing that opportunity, Pakistan enhanced export of kinnow, potato and onion despite the challenges of transportation and logistics, which emerged when lockdown was imposed in the country, he added. “During the peak of the global outbreak, Pakistan exported high quality mangoes to many countries around the world,” he highlighted.

 

FUTURE OF VEGETABLES GROWTH

• Present Gap of Demand and supply is providing a chance to produce of Vegetables.
• Increasing demand of local Processing industry.
• Increasing opportunity of export to China, GCC and central Asia.
• Dry chilli is produced in Pakistan and mainly exported to Dubai, Saudi Arabia, Canada, USA and UK.  India is the main producer and exporter of the dried chilli in the world and the other major producers are China, Mexico, Peru, Turkey, Thailand, Indonesia and Africa mainly Ghana & Ethiopia.
• Vegetables like Brussels sprouts, broccoli, lettuce, green beans, and asparagus is growing well in our country due to ecological conditions and widely exportable products.
• Market revenue in 2023 will be 10.6 billion. Export of fruits and vegetables from Pakistan in this year is registered as 54% and 3.12% respectively. Last year the total 17,072 metric ton is exported to the world. Pakistan earned USD 4.351 million from export.

HYDROPONIC CULTIVATION FEATURES

Hydroponic tomatoes are grown in a nutrient solution rather than soil, although they are typically placed in a non-soil material that can support their roots and hold the nutrients. Hydroponically grown vegetables can be just as nutritious as those grown in soil. … Plants make their own vitamins, so vitamin levels tend to be similar whether a vegetable is grown hydroponically or in soil.

Hydroponic tomatoes are now just as tasty as tomatoes grown outside in perfect summer conditions, scientists say. … Good tomato flavor, as we’ve noted, is a complex combination of sugars, acids and gasses we experience as smell.  Hydroponic plants grow 25-30% faster than traditionally grown plants because the perfect blend of nutrients is delivered directly to the root system. The plant does not need to expend energy on an extensive root system to find the food it needs, so all of its energy goes into upward leaf growth.

5 Best Hydroponic Systems for Tomatoes in 2019 Reviewed

• AIBSI Hydroponics Growing System.
• Deep Culture Hydroponic Bubbler Bucket System.
• HTG Supply Bubble Brothers 6-Site DWC Hydroponic System.
• General Hydroponics GH4830 Complete Power Grower.
• General Hydroponics GH4120 Water farm Grow Kit.

The main advantages of the greenhouses and hydroponic are:

• Good distribution of light inside the greenhouse. The greenhouse covers have the ability to change the direction of the sun’s rays, thus evenly distributed over the entire surface, benefiting the entire greenhouse and avoiding the sun’s rays directly to the plant.
• Energy efficiency. Takes advantage of the environmental conditions, such as optimizing the heat/cooling inside the greenhouse.

• Control of microclimate. One of the main advantages of a greenhouseis to control and establish the optimal environment for cultivation. You can adjust the temperature, humidity, lighting, etc.

• Protection against diseases, pests and other vermin. Another advantage of a greenhouseis that it is very difficult to enter as it is a closed space.

• Excellent ventilation. You can ventilate the greenhouse quickly, thanks to their zenithal or side windows.
• Optimum sealing against rain and air.

• Increased production. There are a great advantage of a greenhouse, can intensify production due to weather conditions, can accelerate the growth of the plants and also allows a greater amount of crop on the surface.

• Production off-season. The environmental control of the greenhouse can produce off-season, therefore we will have a better sale price and a continuous supply of the product.

• Production in regions with adverse weather conditions.

• Ability to grow all the year and maintain crop cycle per year and different species of plants.

• Optimizes the use of other technologies to facilitate the management of climate (heating, humidification, shade screens or saving energy, etc.)
• When Compared To Traditional Soil-Grown Crop Production, Hydroponics Has the Following Advantages: Up to 90% more efficientuse of water. Production increases 3 to

10 times in the same amount of space. Many crops can be produced as fast in a well-managed hydroponic system.

• Hydroponics growing uses mineral nutrient solutions to feed plants that are growing in water, so no soil is used in the process.  Hydroponically farming profitable is the most profitable venture plants to grow and sell, no problem making money.

 

BUILD – OPERATE – TRANSFOR (BOT) BUSINESS PLAN

The proposed project is based on Build- Operate- Transfer basis. Project design rendering to Pakistan agriculture conditions, farmer’s knowledge, experiences, their own economic condition, bank loan facilities, inputs availability, and local and market situations.

 

The consultant company will assist farmer or new investors in the Construction of infrastructure, provide management in production and Sale support in local and international markets. Investor Land transform into modern production orchard within 10 years. 

 

The investor facilitate with initial investment for construction of Climate control first structure on 500 x 157 FT, plantation cost, operation cost at least 3years either from his/her own source or bank loan equalization of 1-hectare construction and 3 years operation facilitation.

 

The consultant company will reinvest first greenhouse revenue in the construction of other 22.5 Acres. As per the below plan in 10 years

 

The investor will get his f 12 % profit on revenue every year, and then after 3 years investor will get mutually agreed profit in the remaining 8 years. 

The proposed plan is Climate control Orchard, size is 25 Acres or 118 089,000 SQFT with ideal Dimension of 1043.55 x 1043.55 FT. Suggested Greenhouse size is 500 x 157, 18 FT air passage between every two structures, 60 FT road passage, construction of the machine room, storeroom, water pound, etc.  Total of 10 greenhouse 500 x 157 FT will construct on 25 acres.

 Farm management, making and implementing of the decisions involved in organizing and operating a farm for maximum production and profit. Farm management draws on agricultural economics for information on prices, markets, agricultural policy, and economic institutions such as leasing and credit. State agriculture policies and their impacts on agriculture. It also draws attention on plants health, environmental impact and ecological sciences and information.

The financial Management, Finance is tools to analyze, plan, and control farm business include financial statements, profit and loss statements, and cash-flow statements. A maintaining of financial statement communicates the amount of money invested in farm assets, outstanding debts, and the owner’s equity in the business, and the degree to which the farm is liquid and solvent. Liquidity is the able to meet financial obligations on time, whereas solvency is the ability to pay all debts (If bank loan in involved) if the business is forced to discontinue. The regular preparation of profit and loss statement shows sources and amounts of income and operating expenses. Comparison of profit and loss statements over a period of years will articulates which resources have been most profitable and whether there has been an advance or decline in net income. Similarly cash-flow statement shows the sources and uses of funds at given periods during the year. Such a statement provides a useful check on the accuracy of the farm’s other business records.

MARKETING STRATEGY, The marketing strategy is formed on three main points, specialization or diversify depending on conditions and scrutinized market place for agricultural commodities with less risk.  By reviewing market price mechanism demand and supply situation to avoid market price shocks.

 

The specialized, Diversification market strategy helpful to avoid market dictation and market forces influences. But present huge gap between demand and supply is reduce the risk of marketing and sales of production.

The plan offers the following services.

• Construction of greenhouses in 25 acres
• HYDROPONIC system installation in each greenhouse as per plan
•       Monitor/manage production
• Arrange sale support in local and in international market.
• Manage package and transportation up to Market.
• Negotiate bank loan for initial setup (If an investor needs a loan facility) on banking terms and conditions.
• Training of designated staff
• Construction of the road, water pound, storage of input and outputs.
• Establish an inventory control system along with accounts and financial management.
• Value edition if the client required.
• Facilitate registration of Client own a company with all concerned departments.
• Technology will transfer to an investor in 10 years.
• Consultant Company will charge 7 % of revenue after the third year.
•       The consultant will charge 6 % of the total invest in each greenhouse.
• Bank payment will make sure by the investor and Consultant Company.

 

Outline of the operating plan. 

1-     Landowner and Consultant Company reached on production plan and sign of contract of smart orchard development on a BOT basis within 10 years.

2-     Land the owner registers an agriculture company.

3-     Land owner and Consultant Company agreed on fruits plant to grow in 10 years.

4-     Mutually agreed on profit share after 3 years onward in 10 years.

5-     Settled financial arrangements either first invest by landowner through his own source or bank loan facilitation on banking term and condition, Consultant Company provide a complete growing, and sales plan to payback plan.

6-     Consultant firm arranges negotiation with local banks, international loaning agency, and arrange documentation as per the requirement of the bank. The landowner will pay a mutually agreed amount to arrange all loaning facilities.

7-     Consultant company laydown design according to the dimension of land.

8-     Consultant the Company manage all equipment’s locally or internationally, installation of greenhouse on settle price with Landowner.

9-     Followed the growing plan

10-   Establish a central control system, electricity, water distribution, centrally control fertilization injection system and central control monitoring system based on LoRa IoT technology to monitor soil fertility, soil moisture, weather condition, and weather forecasting system and greenhouse temperature and humidity control system.

11-   Establish input and output storage.

12- Establish electrical facilitation, installing own transformer to avoid voltage fluctuation and will establish alternative energy source as per agreement of landowner to cut cantankerous electricity bill.

13- Hiring technical staff and labor and arrange training for them.

14- Establish orchard management software

15- Financial record-keeping

16- Establish sale support mechanism.

17- Development plan is based on early harvesting tree too late majority trees.

18- Establish all smart agriculture management on a BOT basis. 

• Order fulfillment: Completion of orchard and handover farm management to Landowner within 10 years.

  An important benefit of a business plan is the pre-production knowledge gained from the homework involved in putting the plan together

• Payment: Consultant firm 5 % on documentation for banking loan, 6 % on the construction of each greenhouse, and 7 % services charges on production facilitation of revenue of each year. 12 % landowner return and after 3 years mutually agreed on profit. Bank interest payment, Climate control greenhouse technology, soil and soilless technology (Hydroponic system) and IoT the technology-based Monitoring system, and alternative solar energy source base technology.
• Key customers: Hospitality, processing industry, supermarkets, and fruit export companies, local cold storage, and companies. Labour needs Agriculturist, skilled labor, electrician and plumber, and transportation and packing facilitators.
• Facilities: Smart orchard development on BOT (build – operate – transfer) basis

Marketing & SALES PLAN

The sales plan is based on Vertical diversification marketing strategy, production, harvesting by processing, packing, economical Transportation and retail selling. Identification of true and potential market, Price Mechanism, and PYO plan with direct methods most importantly Customer pick-up fruit from Orchard. Online/social media market strategy is the key tool for marketing. 

• Key messages: PEST-LESS and CHEMICAL-FREE
• Marketing /salesis the Identification of true/potential market and buyers.
• Direct farmer to buyer, mean establish own outlet or arrange an online sale, provide a chance to reduce marketing cost, cater to consumer desire to buy (and willingness to perhaps pay a premium for) riper, fresher, higher-quality fruits.
• Direct sales mechanism supermarket prices and to avoid paying for the services of wholesalers and retailers. Bypassing intermediaries increase profitability.
• Profit depends on many things mainly the Pricing formula set on the cost of production, return on land, labor, capital, and managerial effort. Price is set based on the income needed to cover fixed and variable costs and provide a profit.
• Marketing Data Collection.
• By treating the desired profit level as a fixed cost, the seller can determine the volume of sales needed to reach a profit goal. For example, if a profit of PKR100 per week is desired with a 40 percent margin between cost and price, the formula to use is: Breakeven point = fixed costs and desired profit ÷ contribution-to-overhead = (PKR 300 + PKR100) ÷ 40 cents = PKR1,000 sales Selling price (SP) = cost of item + desired markup SP = .80 + (.80 x .40) SP = .80 + .3200 SP = PKR1.12 A markup is calculated as a percent of cost, and margin is calculated as a percent of the selling price.
• Sales can be determined as a percentage of past sales, of estimated future sales, or a combination of the two. Past sales usually are on the conservative side, and estimated future sales figures tend to be optimistic. The combination approach provides a more realistic method during periods of changing economic conditions.
• Break-even analysis is a useful tool for coping with this type of problem. Break-even analysis can determine the right price with respect to a given volume or the necessary volume with respect to a given price. To understand break-even analysis, it is necessary to understand fixed and variable costs. Fixed costs exist whether or not the farmer sells any merchandise. These obligations must be met regardless of sales volume. Taxes, insurance, salary, interest, basic utility costs, advertising, and depreciation are all fixed costs. Variable costs are those that are correlated with the level of production and associated sales volume (fertilizer, Agriculture-chemicals, etc.), so higher production results in higher variable costs.
• Development plan is based on reinvestment to other acres within 10 years. So saving will play a vital role in development.

FINANCIAL PLAN

       Financial plans are used to estimate capital needs, to project future financial circumstances, and to make decisions about financial actions needed to carry out a business plan. Financial plans are comprised of three parts — projected balance sheets, projected income statements, and projected cash flow statements. A balance sheet shows the operation’s assets and liabilities at a point in time. An income statement is used to evaluate an operation’s profit level for a given time period. A cash flow statement is a summary of cash inflows and outflows for a given time period and is used to project amounts and timings of borrowing and loan payments. Projected financial statements is being used as an integral part of contingency plans to address possible problems. An established management plan of management controls and contingency plans management control is the process of assuring that the organization’s mission and objectives are accomplished effectively and efficiently. Financial management plans are used for planning, organizing, directing, coordinating, and controlling the operation in order to achieve the mission and objectives. Controlling involves monitoring the business plan to ensure that it is carried out properly. The management plan developed with the idea that it is the driving force to see that the other areas of the business development plan are completed. The management system should provide information useful in monitoring the marketing, production, and finance areas.

 

• Projected start-up costs:The first investment is PKR 57,598,001 cost split into a variable, 3 years production, and fixed cost. Climate control first greenhouse and fix a one-time cost.
• Profit in years on first investment is PKR 143,691,035after 10 years.
• 12 % profit after every year on revenue: PKR 3,286,790
• + 12 % profit share on revenue after 6 years of plan PKR 3,286,790.
• 25 acres greenhouse orchard

 

Although vegetables are

a very important in Pakistan diet providing proteins, minerals and vitamins required for

human nutrition, the daily per capita intake is low, being about 100 grams compared to

the recommended consumption of about 285 grams.

At present the total cropped area of the country is 22.94 million ha. Out of this

55%   is   under   food   crops,   19%   under   cash   crops   and  6%   under   pulses.  Vegetables

constitute  an integral component of the  cropping pattern but the  increasing  pressure on

food and cash crops has limited the area under vegetables to about 0.53 million ha, which

is 2.3% of the total cropped area. They fit well in most farming systems due to shorter

maturity  period. However,  in  the  past,  development  efforts  in  agriculture  sector  were

primarily focused on production and development of cereal crops; in spite of the fact the

vegetables provide maximum output per unit area.

 

Although vegetables are

a very important in Pakistan diet providing proteins, minerals and vitamins required for

human nutrition, the daily per capita intake is low, being about 100 grams compared to

the recommended consumption of about 285 grams.

At present the total cropped area of the country is 22.94 million ha. Out of this

55%   is   under   food   crops,   19%   under   cash   crops   and  6%   under   pulses.  Vegetables

constitute  an integral component of the  cropping pattern but the  increasing  pressure on

food and cash crops has limited the area under vegetables to about 0.53 million ha, which

is 2.3% of the total cropped area. They fit well in most farming systems due to shorter

maturity  period. However,  in  the  past,  development  efforts  in  agriculture  sector  were

primarily focused on production and development of cereal crops; in spite of the fact the

vegetables provide maximum output per unit area.

 

PRODUCTION PLAN

 

Following production plan for proposed Hydroponic Vegetable farm.

• Tomatoes

DESCRIPTION	DETAILS
VEGETABLE	TOMATOES
Number of Plants	21333 plants
Medium of growth	Gutter system
Production	145,200 KGS
PRICE	Average PKR 80/-
Revenue	11,616,000.00

• Color Capsicum

DESCRIPTION	DETAILS
VEGETABLE	COLOR CAPSICUM
Medium of growth	Gutter system
Number of plants	18,000 plants
Production	72000 KGS
Price	Average PKR 210/KG
REVENUE	16,920,000.00

• Cucumbers

DESCRIPTION	DETAILS
VEGETABLE	CUCUMBERS
Medium of growth	Gutter system
Number of Plants	18000 plants
Production	102,780
Average price	PKR 65/KG
Revenue	6,680,700.00

• Cherry Tomatoes and different varieties

DESCRIPTION	DETAILS
VEGETABLE	CHERRY TOMATOES
Growing medium	Gutter system
Number of plant	21333 plants
Production	74,000 KGS
Price	PKR 225/KGS
Revenue	16,650,000.00

 

• BOK CHOY Chinese Cabbage

DESCRIPTION	DETAILS
VEGETABLE	BOK CHOY
Medium OF GROWTH	Vertical
Number of plant	48285 plants
Production	72428 KGS
Price	PKR 225- 275/KG
REVENUE	PKR 16,296,300.00

• SAFFRON

The hydroponic cultivation of saffron (Crocus sativa L.). … The delicacy of saffron makes it an attractive candidate for indoor growth. … When chloride is highly concentrated in the root zone, Vertical system, for one pound saffron we needs 67,500 flowers,2 flower per plant ,and 4 cycles of cultivation. PKR 1000 FOR 2 GRMS

DESCRIPTION	DETAILS
VEGETABLE	SAFFRON
Medium of growth	Vertical
Number of Plants	32,028 plant x 2 flower=64057
Production of dry saffron	9 pound x 4 = 36 pound= 18 KG
Price	PKR 9,600,000.00

• BROCCOLI

DESCRIPTION	DETAILS
VEGETABLE	BROCCOLI
Medium of growth	Vertical
Number of plants	48043 PLANTS
PRODUCTION	24021 KGS x 4=96084
PRICE	PKR 227/KG
REVENUE	PKR 21,811,068.00

• CABBAGE AND ICEBERG

DESCRIPTION	DETAILS
VEGETABLE	CABBAGE AND ICEBERG
Medium of growth	Vertical 26x4x10
Number of plants	193,120
Production	96,560 kg
Price	PKR 80-95 /KG
Revenue	PKR 7,724,800.00

• LETTUCES

All color lettuces and 8 harvesting in year

Description	Details
Vegetable	LETTUCES
Medium of growth	Vertical 12×10 x4 FT
Number of plants	241,400×8 harvestings
Production	193120 kg
Prices	50 to 80 kg
Revenue	PKR 15,449,600.00

• MIX VEGETABLE Greenleaf

KALE, Asparagus, Chinese choy sum, Easy Chinese yu choy sum, Chinese Spinach, Chinese NAP cabbage, Shephero purse, Chinese mustard green, water cress, pea shoots, Cao tou.

Description	Details
VEGETABLE	Chinese Greenleaf
Medium of growth	Vertical 14 x 12x 4 FT
Number of plants	254,870 x 4 harvesting
Production	101,948 KGS
PRICE	PKR 100
REVENUE	PKR 10,194,800.00

GERMINATION AREA

155 x 250 FT germination area for growth seedling for whole project. Vertical germination system.

 

PROPOSED CULTIVATION PLANING

 

Description	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7	Year 8	Year 9	Year 10
Tomatoes
production
Color Capsicum
Production
Cucumbers
Production
Cherry Tomatoes
Production
BOK CHOY
Production
Saffron
Production
Broccoli
Production
Cabbage
Production
Lettuces
Production
Chinese VEG
Production

 

 

 

COSTING

Operation cost

VEG	Tomatoes	Capsicum	Cucumber	Cherry	Bok Choy	saffron	Broccoli	cabbage	Lettuce	Mix VEG
Seed	243192	172,800	172,800	284700	487.500	1,201,400	844,222	342,890	433,800	500,800
Supplement	48600	51,700	48600	48600	52700	76900	57000	57000	48600	52700
Fertilizer	478,900	478,900	478,900	478,900	525,700	1,067,500	745,800	745,800	745,800	745,800
Electricity	556,920	556,920	556,920	556,920	556,920	556,920	556,920	556,920	556,920	556,920
Water	231,800	231,800	231,800	231,800	341,700	341,700	441,800	441,800	441,800	441,800
Labour
Season lab
Packaging	392,000	201,600	266,000	425,000	225,600	378,000	256,800	256,800	436,900	436,900
transport	96000	96000	96000	96000	112000	48000	125,000	125,000	225,700	225,700
Total	2,047,412	1,786,620	1,851,020	2,121,920	2,293,120	3,602,920	3,027,542	2,526,210	2,963,820	2,960,620

Please note: – all costing is calculate based on present retail market prices, it will vary/change in coming 10 years, Government changed duties and tax , Dollar fluctuation changed exchange rate and prices became higher.so seed price, fertilizer price, electric city tariff changed. Therefore 10 % increase will incorporate in projection sheet.

OPERATIONAL LABOUR COST

Description	Month	year
Agriculturist	40,000	480,000.00
Skilled labour	20,000	240,000.00
Season labour	20,000	240,000.00

 

CONSTRUCTION COST

Description	Gutter system	Vertical system
Skelton	8,484,225.00	8,484,225.00
Cover sheet and profile	2,416,274.00	2,416,274.00
Growing system	3,550,000.00	8,950,000.00
Growing structure cost	2,170,800.00	2,455,800.00
POTs	–	1,635,168.00
Hanging	987,900.00	–
Water distribution	1,234,560.00	1,789,700.00
Ventilation system	4,358,607.00	4,358,607.00
Misting and Fogging system	1,452,700.00	1,452,700.00
Shading system	2,164,999.00	2,164,999.00
Electric system	945,900.00	945,900.00
LED GROWING lighting	3,589,656.00	4,789,899.00
Co2 system	1,156,160.00	1,156,160.00
Ground cover	2,456,083.00	2,456,083.00
Monitoring and control system	639,000.00	639,000.00
Civil work	2,451,425.00	2,451,425.00
Total	38,058,289.00	46,145,880.00

One time cost on equipment’s

Description	Details
Fertilizer injection system commander ITALY	1,645,900.00
NPK adjuster ITALY	1,560,700.00
Commander controlling system ITALY	896,500.00
IoT Monitoring system BELIGUM	1,094,500.00
Water POUND 25x25x5 LOCAL	775,800.00
Waste water pound  25x25x5  LOCAL	575,800.00
Transformer 225 KV and cabling  LOCAL	1,575,800.00
Control room, input and output store staff room	2,020,750.00
Tube wall and accessories  LOCAL	1786,800.00
Total	11,932,550.00
Grand total	49,990,839.00
Service charges 6 % of total cost	2,999,450.00

10 % increase in case of increase in material

GERMINATION 300 x 155 FT

DESCRIPTION	DETAILS
GERMINATION for all setup	5,559,750.00

 

Please note:-

Variable/fixed equipment’s cost will be fluctuate each year, because of induction 10 different growing units in the 10 years. Infrastructure cost is may differ with others infrastructure units due to dollar fluctuation, labour cost, material cost and change in government duties and taxes. Similarly each fruit plants has their own age of majority, production cycle and production age and needs of inputs, seed and fertilizer etc., consequently exact infrastructure cost and operational cost determination is based on estimation and cover with 10% fluctuation addition in cost.

 

 

 

Projection in 10 years

Costing

	HYDROPONIC VEGETABLE BOT PLAN
	OPERATIONAL  COST PROJECTION
	10 % increase
Description	year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7	Year 8	Year 9	Year 10
Tomatoes	2,047,412	2252153.2	2477368.52	2725105.37	2997615.9	3297377.5	3627115.25	3989826.775	4388809.5	4827690.4
Capsicum		1,786,620	1965282	2161810.2	2377991.2	2615790.34	2877369.38	3165106.314	3481616.9	3829778.64
Cucumbers			1,851,020	2,036,122	2,239,734	2,463,708	2,710,078	2,981,086	3,279,195	3,607,114
Cherry Tomatoes				2,121,920	2334112	2567523.2	2824275.52	3106703.072	3417373.4	3759110.72
BOK Choy					2,293,120	2522432	2774675.2	3052142.72	3357357	3693092.69
Saffron						3,602,920	3963212	4359533.2	4795486.5	5275035.17
Broccoli							3,027,542	3330296.2	3663325.8	4029658.4
Cabbage								2,526,210	2778831	3056714.1
Lettuce									2,963,820	3260202
Mix VEGETABLES										2,960,620
Total	2,047,412	4,038,773	6,293,670	9,044,957	12,242,573	17,069,750	21,804,267	26,510,904	32,125,814	38,299,016.4

 

 

 

STATEMENT OF ACCOUNTS

	HYDROPONIC VEGETABLE BOT PLAN
	STATEMENT
	10% INCREASE
Description	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7	Year 8	Year 9	Year 10
Revenue Tomatoes	11,616,000	12777600	14055360	15460896	17006985.6	18707684.16	20578452.58	22636297.83	24899927.62	27389920.38
Capsicum		16,920,000	18612000	20473200	22520520	24772572	27249829.2	29974812.12	32972293.33	36269522.67
Cucumber			6,680,700	7348770	8083647	8892011.7	9781212.87	10759334.16	11835267.57	13018794.33
Cherry Tomatoes				16,650,000	18315000	20146500	22161150	24377265	26814991.5	29496490.65
BOK CHOY					16,296,300	17925930	19718523	21690375.3	23859412.83	26245354.11
Saffron						9,600,000	10560000	11616000	12777600	14055360
Broccoli							21,811,068	23992174.8	26391392.28	29030531.51
CABBAGE ICEBERG								7,724,800	8497280	9347008
Lettuce									15,499,600	17049560
Mix VEGETABLES										10,194,800
Revenue Tomatoes	11,616,000	29,697,600	39,348,060	59,932,866	82,222,452	100,046,697	131,860,235	152,771,059	183,547,765	212097341.6
operation cost	2,047,412	4,038,773	6,293,670	9,044,957	12,242,573	17,069,750	21,804,267	26,510,904	32,125,814	396804762.9
Agriculturist	480,000	480,000	480,000	480,000	528,000	528,000	528,000	528,000	580,000	580,000
Labour cost	240,000	240,000	480,000	480,000	480,000	720,000	720,000	960,000	960,000	960,000
season labour	240,000	264000	290400	319440	351384	386522.4	425174.64	467692.104	514461.3144	565907.4458
Landowner share	1,393,920	1533312	1686643.2	1855307.52	2040838.272	2244922.099	2469414.309	2716355.74	2987991.314	3286790.445
Landowner profit						2,244,922	2469414.2	2716355.62	2987991.182	3286790.3
consultant company	813,120	870038.4	930941.088	996106.9642	1065834.452	1140442.863	1220273.864	1305693.034	1397091.547	1494887.955
Total	5,214,452	7,426,123	10,161,654	13,175,811	16,708,630	24,334,559	29,636,544	35,205,000	41,553,349	406,979,139
GP	6,401,548	22,271,477	29,186,406	46,757,055	65,513,822	75,712,438	102,223,691	117,566,059	141,994,416	194,881,798
Market commsion	1,161,600	2,969,760	3,934,806	5,993,286	8,222,245	10,004,669	13,186,023	15,277,105	18,354,776	21,209,734
Admin	175,000	192500	211750	232925	256217.5	281839.25	310023.175	341025.4925	375128.0418	412640.8459
staff	288,000	316800	348480	383328	421660.8	463826.88	510209.568	561230.5248	617353.5773	679088.935
Utilities	30,000	33000	36300	39930	43923	48315.3	53146.83	58461.513	64307.6643	70738.43073
Packing	392,000	431200	474320	521752	573927.2	631319.92	694451.912	763897.1032	840286.8135	924315.4949
transportation	96,000	105600	116160	127776	140553.6	154608.96	170069.856	187076.8416	205784.5258	226362.9783
depreciation	227,900	250690	275759	303334.9	333668.39	367035.229	403738.7519	444112.6271	488523.8898	537376.2788
Amortization	5,000	5,000	5,000	5,000	5,000	11,951,615	13146775.99	14461453.59	15907598.95	17498358.85
sub total	2,375,500	4,304,550	5,402,575	7,607,332	9,997,195	11,951,615	13,146,775	14,461,453	15,907,598	17,498,358
before Tax	4,026,048	17,966,927	23,783,831	39,149,723	55,516,627	63,760,823	89,076,916	103,104,606	126,086,818	177,383,440
income tax 17%	684,428	3,054,377	4,043,251	6,655,452	9,437,826	10,839,339	15,143,075	17,527,783	21,434,759	33,129,905
land tax	562,500	562,500	562,500	562,500	562,500	562,500	562,500	562,500	562,500	562,500
sub total	1,246,928	3,616,877	4,605,751	7,217,952	10,000,326	11,401,839	15,705,575	18,090,283	21,997,259	33,692,405
INCOME	2,779,120	14,350,050	19,178,080	31,931,271	45,516,301	52,358,984	73,371,341	85,014,323	104,089,559	143,691,035
Bank Loan
NET INCOME	2,779,120	14,350,050	19,178,080	31,931,271	45,516,301	52,358,984	73,371,341	85,014,323	104,089,559	143,691,035

 

 

 

 

REPLACMENT OF EQUIPMENT

DESCRIPTION	DETAILS
REPLACMENT OF COVER SHEET IN YEARS	4
REPLACMENT OF COCO PEAT BAGS	5
REPLACMENT OF COOLING PADS	5

PROJECT FINANCING

Description	DETAILS
Total project financing	PKR 55,550,589
Running finance	PKR 2,047,412.00
Owner equity	50 %
Bank equity if bank is involved	50 % INCASE OF BANK FINANCING
Markup	Interest rate Agri bank 6 % interest rate % 12.50
Tenure is payback (years )	5

PROJECT ECONOMICS

DESCRIPTION	DETAILS
INTERNAL RATE OF RETURN (IRR)	32 %
PAYBACK PERIOD (Yrs)	2.2
NET PRESENT VALUE (NPV) Rs.

The above tables shows internal rate of return, payback period and net present value. Return on investment and its profitability are highly dependent on the entrepreneur having some practical knowledge about agriculture, framing, technology know how, operational capacity of staff and market knowledge. Selection of high quality seeds, fertilizer, supplements and vegetables cultivation.

 

KEY ASSUSPTIONS

DESCRITION (Operating cost assumption)	DETAILS
Administration benefits expenses	10% of admin expense
Communication expenses	30,000 annual expense
Travelling expense	96,000 annual expense
Promotional expense on social media	15,000
Professional fees (legal, audit, consultant)	05% of revenue
Deprecation	5 %
Office expenses	175,000
Office vehicles insurance rate	10%
Depreciation on green house and equipment’s	33 %
Depreciation of vehicle	20 %
Operating costs growth rate	5 %
Accounts receivable cycle	25 days
Raw material inventory	06 months
Amortization of pre operating expenses	05 years
Description of production cost assumption	Details
Cost of goods sold growth rates	10 %
Operating cost growth rate	5 %
Vegetable market expense	10 %
Farm to market trip cost	PKR8000x 12= 96000 per trip load 14 tons No of trips 12
Description of Revenue assumption
Sales prices growth rate	10 %
Production capacity utilization (1-10)	100 %
Days operation	210-240 days
Financial assumptions
Project life	10 year
Structure grantees	20-25 year
Debt	50 %
Equity	50 %
Interest rate on debt	20 %
Debt tenure	5
Debt payment years	10

DUA ENTERPRISES

 

www.duaenterprises.net

 

shoaibdua2009@gmail.com

 

 

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