- Country: India
- Industry: Agriculture
- Stage: Seed
- Investment size: $750,000 / min. $750,000
- ROI: 50% in 10 years
- Type of investment: Equity
The project involves setting up and manage a fully equipped hi-tech farm, producing first quality Coffee, Spices like Pepper, Cardamom and various fruit varieties.
The project involves setting up and manage a fully equipped hi-tech farm, producing first quality coffee, spices like pepper, cardamom, cinnamon, fruits like orange, lemon, avocado, butter fruit, custard apple and jackfruit. A brand store is being planned near Kodai lake to make use of tourist attraction to sell products at retail prices which is usually more than the wholesale price. Foreign export of farm products will be planned in subsequent years to achieve higher profit margin.
Kodaikanal is a famous hillstation in Southern Tamil Nadu state of India, situated at an altitude of 2,133 m (6,998 ft) above sea level. The farm, spread over 20 acres is at a distance of 10 miles from the Kodai lake, the famous tourist spot. Manpower availability, abundant water supply and proximity to market are advantages.
Investment needed - USD 750,000 or INR 5,00,00,000
Minimum expected returns is more than USD 75000 or INR 50,00,000 per year.
Total ROI period is maximum 10 years & minimum 5 years.
Profit will be shared on equity basis. Profit ratio is 50:50
Partnership can be documented and registered.
All crops will be insured for risk mitigation.
THE CROPS AND THE VALUE PROPOSITION :
Varieties - Select 5B, Robusta & Native Cauvery Chandragiri Neri.
Currently yielding 5-6 tones parchment per year -INR 10,00,000 to INR 12,00,000 per year.
Expected yield in 2 years 15 tones parchment per year INR 30,00,000 per year.
After 2 years, expected yield is 20 tones parchment per year INR 40,00,000 per year.
Variety - Panniyur Karimunda
Currently yielding -400 vines
Ready to give yield -600 vines
Newly planted - 1500 vines
Currently yielding as of now nearly 1 Tonne INR 6,00,000 per year
Expected yield in 2 years 3 Tonne - INR 18,00,000 per year
After 2 years, expected yield is 5-6 Tonne - INR 25,00,000 to INR 30,00,000 per year
Variety - Native & Hybrid Kamala Orange
1000 trees existing in yield
Ready to give yield -2000 trees
Newly planted 3000 seedling
Income per year is nearly INR 1,00,000 per year
Expected yield in 4-years - INR 6,00,000 per year
To be planted in 10 acres.
Expected yield is INR 5,00,000 per year
To be planted in 10 Acres as intercrop with Cashew Trees.
Expected yield is INR 15,00,000 per year
For lifetime assured return on the investment being made, Interested investors please contact us on Merar.
1) India is a huge and potential market for its domestic consumption.
2) As we produce basic food with quality and no doubt we have real competitive advantage.
Rationale for the deal
1) The fund is utilized carefully towards farm infrastructure and implementation of modern techniques.
2) As in India, agriculture income is completely tax free, we can reap the full financial benefits.
Income by Bank Fixed Deposit :
INR 28,00,000 Post Tax \ Year
( Considering Best Interest Rate 8% in India & 30% Tax Slab )
Attracts secondary tax for returns if reinvested elsewhere.
Interest Rate likely to reduce further in forthcoming years.
( Versus )
Investor's Profit from Our Project :
(50% of Total Annual Profit, Tax Free )
Current Income : 10,00,000 \ Year
From end of 2nd Year onwards : 24,00,000 \ Year
From end of 4th Year onwards : 38,00,000 \ Year
(Excluding Revenue from Cashew, Cardamom & Export )
From end of 4th Year onwards : 50,00,000 \ Year
(Including Revenue from Cashew, Cardamom, Fruits, Timber Trees & Export )
Nil Tax for returns if reinvested in expansion and development.
Willable stake \ Income source for future generations, Also saleable to Third Party.
Use of financing
Procurement & setting up the infrastructure, Maintenance expenditures till ROI.
Opportunity for the investor
Lifetime assured return of investment, Equity offers more returns from farm when Export Operations is started and Business Development is made in subsequent phases.
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