Agri Tourism Investment of 5 Lakhs up to 5 Crores in India

Opportunity Snapshot

  • Country: India India
  • Industry: Agriculture
  • Stage: Start-up
  • Investment size: $1,000,000 / min. $200,000
  • ROI: 15% in 5 years
  • Type of investment: Debt

Investment Opportunity

We are looking for investors for infrastructure of the resort and will use the agricultural land as guarantee. Funding of Rs. 5 Crores is needed.

We have plantations with scenic beauty on lesser known hill locations on Western Ghats, which are well connected to cities. The current proposal is about setting up a Farm Themed Green Resort with service and promotion packages referring to the different agricultural seasons. The Plantation is already established and running on profit.

The plantation is a 200 acres property with Cashew, Areca nut, rubber and forestry. About 50 acres of land is vacant and unfit for farming. We propose to build themed cottages and recreational area there fully based on sustainable ideas and practices. The property is located on the Western slopes of Western Ghats in Uttar Kannada, Karnataka, India.

The plantation is well connected to large cities like Mumbai, Hyderabad and Bangalore. Target clients are city dwellers who wish to relax and enjoy plantation life. We will be offering only basic amenities provided with extra care. No luxury.

We plan to promote the resort based on agricultural seasons, such as:
• Summer-Harvest Season Package, where the clients can have hands-on experience in harvests
• Lazy-Monsoon package, where the clients can experience monsoon rains hitting their window and also see the other agricultural practices
• Spring- blossom season, where all the plants are in full blossom

The farm is already running profitably and all the basic amenities such as water, power, roads, etc. are available. Building plans and permissions are being obtained.

We plan to have 5 cottages initially to start functioning from June 2013 (Monsoon season) and 10 by December 2013.

In total we plan to have 20 Cottages, 2 restaurants, recreational area, indoor games room, etc. completed by March 2014.

Competitive Advantage

Our competitive edge will be the different scenic beauty and nature. Any tourist would not prefer to repeat visits to same place and the resorts can only introduce new features in their facilities but cannot alter with the natural places of interest. And our area has some of the least exploited tourist destinations.

There are no resorts of such nature in our surroundings and it will take time for competitors to setup due to the lack of large land area available in one plot.

Land is already in possession, so we do not need investment for the same.

Opportunity for the investor

Funding of Rs. 5 Crores is needed, which can be provided by investors in portions of 5 lakhs or more.

Payback, if on interest basis, will be reached within 5 years from 2014 with quarterly interest payments till then, starting from June 2013.

Alternately, the investor can opt for ownership of a cottage, where a fixed rent quotient will be given to the investor of the collections and the we propose to have only profits on operating facilities, i.e.: Cottage Tariff - Rs. 2500 per day, then Cottage rent - Rs. 1500 payable to the investor and Rs. 1000 operation costs for us. Occupancy on cyclic form is offered.

For large investors a portion of the land can be hypothecated and there will be a one-time payback after 5 years from March 2014.

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