- Country: India
- Industry: Agriculture
- Stage: Seed
- Investment size: $300,000 / min. $300,000
- ROI: 77% in 5 years
- Type of investment: Equity
An Agricultural-Export start up of Green Foliage. This is a new business concept in India, with huge export potential in Europe.
An Agricultural-Export start up of Green Foliage. Green foliage or just greens are colourful ornamental leaves used in floral decorations, arrangements and bouquets. They add beauty to flowers; make arrangements look fuller and more compact. Tropical atmosphere is suitable for growth of these foliage plants. We plan to cultivate these plants on our own land (approximately 6 acres, located in Konkan in Maharashtra on west coast of India) and export them to Europe. Few big importers of greens in the Netherlands are already in communication with us and have shown keen interest.
Our Core team consists of an expert from International Trade and a stalwart horticulturist. We also have a reputed Dutch consultant on board to help us market our products in Europe. Therefore each one of us is master in his own field and we all of us together make a strong team.
Demand for these greens in European market is huge. Presently Guatemala, Costa Rica, Israel Kenya and Ethiopia supply these to the Netherlands. However their supplies are inconsistent because of political and economic instability in these countries. Demand is so huge that supplies from these countries are not able to meet the demand; whereas India has got solid competitive advantages for these products, because of tropical weather, strong and growing economy and stable political conditions.
Additionally we have strengths to make this a successful venture. To name a few – our expertise as mentioned above; location of our land, which climatically and geographically is one of the best locations in India; and our proximity to India’s largest international sea port and air port, which means good connectivity with Europe.
This business model has got very low risk, extremely good growth potential, very good upward scalability and huge market demand throughout the year. We are now looking for an investment of Rs 2 Crores (approx USD 300,000) and assure to give an ROI of 75% in five years. Majority of investment is required for the purpose of construction of green-house, cultivation beds, irrigation systems and cold storage. A small portion is also required for working capital. Please contact us if you are interested to get involved in this new lucrative business idea.
Presently competition is from Guatemala, Costa Rica, Israel, Kenya and Ethiopia. India in competition with these countries has solid competitive advantages because of its tropical weather, strong and growing economy and stable political conditions. India’s ocean / air freight costs to Europe are also lower as compared to these countries. Plus connections and frequency from India is better because of her high volumes of export.
Additionally we have competitive advantages because of its land location. This is geographically and climatically one of the best locations which will give high yield and good quality and sheen to the foliage. Also the location is in the proximity of Nhavasheva port, which is India’s largest international port.
Rationale for the deal
Although this is a new concept in India for export, this product is very well established in European market. Demand for these products in Europe is ever increasing. We are already in contact with a few big importers of this product and they have shown keen interest. We also have a Dutch consultant on board, who will help us market our products there. Unlike other horticulture (fruits etc) and floriculture products, these products have very little risk, have much bigger window for harvesting and their plants are hardy which means remain stable in adverse conditions also. Because of all these reasons risk level of the proposal is very low and profitability is very good. Gestation period is around 12 months for the plants to start giving the yield. Therefore from second year onward, net profit (after interest and taxes) is around 30%.
Use of financing
Investment required will be mainly used for construction of green house, making cultivation beds, irrigation systems and construction of cold storage etc. Part of investment will also be utilized for working capital. We have complete details of projected financials ready with us and can share that with prospective investors.
Opportunity for the investor
This proposal has solid growth potential. Demand for these products in Europe is huge and production is scalable. We are capable of capturing the market. Also profitability / ROI is very good. Company value therefore will increase multi-folds and will pay rich dividends to the investor.
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