Opportunity Snapshot
- Country: India
- Industry: Agriculture
- Stage: Start-up
- Investment size: $220,000 / min. $200,000
- ROI: 100% in 4 years
- Type of investment: Debt, Equity
Investment Opportunity
There is a diverse land mass wasting in India and we are looking at solving this issue and capitalizing on it through creating Eucalyptus plantations.
Our company is having its own Splining Production Unit.
Our saplings are 3 months old and will be marketable in the next 3.5 to 4 years.
Eucalyptus wood is an ever demanding product for paper manufacturers.
Revenue will be generated by harvesting the trees after 3.5 to 4 years.
Competitive Advantage
Advantages of Eucalyptus:
Though there are number of crops that are available for the production of bio mass the question that arises in the mind of the cultivators is that why Eucalyptus should be chosen?
Researchers say that the answer to this question is very simple. They say that cultivating and processing Eucalyptus has many advantages than any other plant.
The following factors made Eucalyptus an advantages one:
• It is easy to cultivate Eucalyptus. Eucalyptus can grow on all the climatic conditions and soils hence it is cultivated in most of the places.
• It is less expensive to cultivate Eucalyptus and most of the Eucalyptus Saplings varieties are available of less cost.
• The percentage of yield is high and the extraction of paper is also maximum.
• Eucalyptus provides higher rate of output.
• It is very easy to maintain the Eucalyptus plant even at the seedling stage
Eucalyptus stands as an ideal crop among the crops because of the following reasons:
• Drought resistant
• Eucalyptus plant has the ability to grow well on poor and infertility soil, in marginal areas and can withstand any type of climate
• Needs only little amount water and maintenance
• The plant can be harvested for about 3.5 to 4 years and plant can be harvested 3 times within 10 to 12 years
Following are the advantages of the Eucalyptus plant:
• Low cost Saplings
• High Log Weight content
• Small development period
• Grow on good and despoiled soil
• Grow in low and high rainfall areas
• Does not require any special maintenance
• Can be harvested in non-rainy season
• Multi products are developed using a single Eucalyptus plant. The products include paper, plywood, and biomass briquettes.
Rationale for the deal
We have diverse land mass wasting and we are looking at getting as much land plots as possible to plant Eucalyptus trees. The more land you get the more plantation you get and the more cash flow you make every year.
Use of financing
Initial project start with 500 Acres of land.
Cost of the plantation with lease for 3 years: 1.4 Crores INR
Retunes on Eucalyptus plantation After 4 years: 7.50 Crores INR
(Sale of harvested logs: 30 t log wood *5000/-per ton )
Profit after 4 Years: 6.20 Crores INR
Profit after 4 Years in USD: 1million USD
Opportunity for the investor
ROI: yearly interest of 6% and profit sharing at a 60/40 ratio
Payback period: 4 years
Genuine investors can establish contact with us immediately.
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