The proposed garden will have harvesting facility of about 5.70 lakhs cut flowers per annum. The mix of cut flowers per annum will be as follows:
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1 FLORICULTURE (Cymbidium, Gladiolus, Tube Rose, Anthodium, Lilium) INTRODUCTION: The North Eastern region is flush with beautiful natural flora throughout the year due to its peculiar physiography, distinctive weather and agro climatic condition. The country is well recognized for growing traditional flowers such as jasmine, marigold, chrysanthemum, tuberose, crossandra and aster. It presents huge opportunity for commercial production and offers lucrative investment opportunity for farmer and agro entrepreneurs. Commercial cultivation of cut flowers such as rose, orchids, gladiolus, carnation, anthurium, gerbera and lilies have also been adopted by farmers on large scale. There is high demand for these products in the domestic and international market. India has significant prowess in floriculture and it has been identified as focus area for exports. North Eastern region has the agro-climatic advantage at tropical and temperate regions to grow verities of floricultural products in addition to rich genetic diversity. These factors are important for the investments in the sector advantageously. The project is an eco-friendly venture. Enhances the greenery of the waste/jhum lands, reduces pressure on forest resources. PRODUCT USES: Flowers are very intimately associated with the social and religious activities in India. In social life, flowers are offered to welcome, to felicite and to greet friends or relatives and guests in functions. Flowers are needed in all the religious ceremonies functions including marriages. Garlands and wreaths are offered on dead bodies of martyars and very important persons (VIPs) and national heroes as a gratitude for the work done and sacrifice made by them. Flower is a taken of love and tenderness. They are wanted due to various attractive colours and fragrance. Flowers are also used for extracting essential oils, which are used in perfumes. Many flowers have medicinal values and hence are used in Ayurveda. In India, large numbers of flowers are grown in different parts according to soils and climate and also likings and preferences of the people for specific type of flowers. MARKET POTENTIAL: The major markets for flowers are situated in the states, which produce significant quantities of flowers. Kerala is one state that has a fairly large market without any production of flowers. Indian floriculture industry has been shifting from traditional flowers to cut flowers for export purposes. The liberalized economy has given an impetus to the Indian entrepreneurs for establishing export oriented floriculture units under controlled climatic conditions. About 60,000 ha area is under floriculture at present. Production flowers is estimated to be 200,000 tonnes of loose flowers and 500 million (numbers) of cut flowers. An export of floriculture products was valued at Rs. 700 million (US$ 20 million). There has been an impressive growth in the export of cut flowers from Rs. 10 million to Rs. 700 million in the previous years. Suggested Capacity: The proposed garden will have harvesting facility of about 5.70 lakhs cut flowers per annum. The mix of cut flowers per annum will be as follows: Product Cymbidium Gladiolus Tube Rose Anthodium Lilium Total Annual Production (pcs.) 1.00 lakhs pieces 0.50 lakhs pieces 3.00 lakhs pieces 0.60 lakhs pieces 0.60 lakhs pieces 5.70 Lakhs pieces 15
2 Basis:- No. of working days = 365 days per year No. of Shifts = 1 per day. One shift = 8 hours Infrastructure requirement: The main Infrastructural facilities required are: Required land area: 2 acres or 8000 sq. m. Power requirement Water (required in every working day) 20 kw. 6-7 KL of water Raw Materials/Consumables: The various materials required for production of cut flower project will be as follows: Items Value per Annum (Rs.) Poly Sheet 5,000 Hard Wire 12,000 Glass ware 8,000 Seeds for nursery 3,000 Tissue Culture 22,000 Fertilizers 20,000 Insecticides 10,000 Trans plant cost 5,000 Diesel Required 15,000 Packing materials 50,000 Total Cost 1,50,000 a) All material & consumable items can be procured from local agencies in the open market. b) Suggested Location: c) Location for setting up of Cut flower unit should be based on well-developed road and air connectivity. Considering transportation bottlenecks which are a common feature in this region, such units are envisaged in following areas. d) Assam: Guwahati, Dibrugarh, Tinsukia, Jorhat, Silchar, Karimganj and Nogaon, e) Arunachal,Itanagar, Doimukh, Naharlagun, Dirang,Bhalukpung f) Pradesh: Yachuli, Joram, Hapoli,Pasighat, Bobdilla & Tawang, g) Meghalaya: Barapani, Nongphu, Barnihat, Shillong, Jowai, and Tura. h) Nagaland: Kohima, Dimapur. i) Manipur: Imphal j) Mizoram: Aizwal k) Tripura: Dharmanagar, Agartala and Udaipur. l) Sikkim: Bakhim, Chunthaow, Lachung, Yumthang, Tashiding m) Process Steps: n) The main process steps involved are: o) Choosing a site: Most cut flowers prefer a location in full sun throughout the entire day. The field and soil should be well drained. Wind protection is highly desirable for all plant. 16
3 p) Preparing the Bed : Plants should be grown in beds raised 4-6 inches to maximize drainage. Poorly drained soil should be corrected by placing drain lines inches deep under the bed. q) Green House: Green house envisaged for project will be basically shedding covers to safeguard the plants from excessive rains as well as in few cases from excessive sun. The Green house shed will be made by using local bamboo and sal wood for prop-up and trusses. The top cover will be made by using double ultraviolet stabilized poly films or shading net. r) Choosing ideal crops: Crops must be selected keeping mind the following conditions. a. Must be low cost of production materials & labour. b. High value and unlimited demand. c. High production per sq. ft. of bed space. d. Long productive life. i. Appropriate time to plant: Planting must be taken depending on target market and on plant classification- whether it is an annuals, biennials or perennials. ii. How to Plant: In general, transplants should be planted shallow with the roots placed just below the soil surface. iii. Watering: To maintain floral quality and peak production, the plants must be watered frequently, sometimes daily with some soil types. iv. Fertilizer: Before initiating any fertilizer programme, testing soil for getting nutrient content is most essential. The application of fertilizer should coincide with crop need. v. Weed Control: Weeds must be controlled in field production of cut flowers. Competition with weeds reduces the quality and quantity of floral production. s) Insect Control: The ideal approach is a preventative programme, control insects early, when they are first detected. t) Disease Control: Foliar fungus diseases are the most serious disease problem on cut flowers. u) Harvest: Flowers should be harvested at the peak perfection, the peak of perfection is when the flower is showing its best colour and form and last the longer. v) Post harvest: After flowers are removed from the fied and placed in the packing shed, the stems should be cut under water. w) Pulsing: pulsing is a chemical treatment of flower to prolong the vase life. x) Marketing & Selling: Flowers can be marketed to a flower wholesaler, a retail florist or directly to the public at a farmers market or farm market. 17
4 PROJECT ECONOMICS The total capital requirement estimated is Rs lakhs as given below: - (Amount Rs. in lakhs) Land Own/Lease Land Development Cost 3.50 Building/Civil Works i) Construct the green house 2500 sq.m ii.) Office/Store/Reception 400 sq.ft iii.) Toilet/Bathroom/cemented open space Drainage facilities etc Plant & equipments 4.00 Other misc. Fixed Assets (Water arrangement/overhead-reservoir/pump-set Power line connection/water & Electrical fittings Other Equipments/Office Equipments) 3.50 Preliminary & Pre-operative Expenses 1.00 Sub Total (A) Rs B. Working Capital (Norms) (Amount Rs. in lakhs) Raw Materials/Consumables year 1.50 Working Expenses month 0.67 Finished Goods 5 days 0.16 Receivable 0 days 2.19 Sub Total (B) Rs Note: Working Capital to be financed as:- Margin Money: Rs Bank Finance: Rs Rs Means of Finance Promoter s Equity(25%) 6.43 Term Loan(75%) Rs Production Expenses Raw materials/consumables 1.50 Wages & Salaries 7.40 Utilities 0.60 Repair & Maintenance 0.12 Administrative Overhead 0.24 Selling expenses 10% on sales 2.66 Depreciation 1.35 Interest
5 Sales Turnover Flowers Annual Production (pcs.) Avg. whole sell price considered at Kolkatta marke (Rs. Per Pcs.) Annual Turn Over Cymbidium 1.00 lakhs Gladiolus 0.50 lakhs Tube Rose 3.00 lakhs Anthodium 0.60 lakhs Lilium 0.60 lakhs Total Rs Profitability: Based on the sales Turnover and the operating expenses, the profit would be Rs lakhs per year. This works out to a return on capital investment of 38%. The unit would break-even at about 41% of the rated capacity. Break Even Analysis A. Variable Cost: Raw Materials/Consumables 1.50 Utilities 0.60 Selling Expenses B. Semi-Variable Cost: Wages & Salaries 7.40 Repair & Maintenance 0.12 Administrative Overhead 0.24 Depreciation 1.35 Interest C. Sales Turnover: Rs Lakhs D. Contribution: Rs Lakhs E. Break Even Point B/D X!00% 55% Manpower Category No. of Person Salary Per Person Per Month(Rs) 19 Monthly Salary Bill (Rs.) a) Scientist (Horticulturist) 1 12,000 12,000 b) Laboratory Technician 1 6,000 6,000 c) Skilled Worker 2 6,000 12,000 d) Un-skilled workers 5 3,000 15,000 e) Accounts cum storekeeper 1 5,000 5,000 f) Marketing personal 1 6,000 6,000 Total Manpower cost Rs. 56,000 Salary Bill Rs 6.72 Lakhs + annually i.e. Rs 7.40 Total Annual Salary Bill: Rs Highlights: The major highlights of the project are as follows: Total Capital requirement Rs lakhs Promoter s contribution Rs lakhs Annual Sales realization Rs lakhs Annual Operating Expenses Rs lakhs Annual Profit Rs lakhs Return on sales 37% Break-even point 55% No. of person employed 11
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