Project report for Anthurium flower cultivation

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Introduction

Flowers denote purity, strength, and selflessness. They inspire the entire human race to follow the path of righteousness. The sight of beautiful fresh flowers has a calming and positive effect on spectators, which is why they hold a special place in the history of humanity since time immemorial.The Indian Floriculture market was worth INR 188.7 Billion in 2019. Floriculture also known as flower farming refers to the cultivation of flowering and ornamental plants. Although flowers have been an integral part of the Indian society and were cultivated for various purposes ranging from aesthetic to social and religious purposes, the commercial floriculture industry has been of recent origin. A strong increase in the demand for cut and loose flowers has made floriculture as one of the important commercial trades in Indian agriculture.While exports remain a key motivator for cultivators, the domestic demand for flowers is also increasing exponentially, especially in the metros and larger cities. Modernization and growing western cultural influences have driven consumers to buy flowers on a number of occasions like valentine’s day, marriages, anniversaries, birthdays, friendship day, Mother’s Day, Father’s Day etc. Large scale consumption of flowers is also carried out throughout the country during religious festivals.The metros and the larger Indian cities currently represent major consumers of flowers in the country. As a result of increasing urbanization and influence of western cultures, “saying it with flowers” is becoming quite popular on a number of occasions such as Valentine’s Day, birthdays, festivals, anniversaries, marriages, farewell parties, religious ceremonies, etc. We expect the consumption of flowers to increase further as trends of urbanization and influence of western culture is expected to increase further in the coming years. Flowers are a symbol of strength, purity, and generosity. When you see beautiful and fresh flowers they have a peaceful and positive effect on the viewer.In all Indian weddings, you will find many types of flowers. Right from stage decorations to bridal makeup, you will find flowers.So the market for different type of flowers are varying in India , so the industry has huge potential in India as well as abroad.

 

Market potential & Strategy

In India, flowers have the utmost importance in every occasion. Flowers have traditional or spiritual significance in India. Indian culture is a blend of several subcultures. Indian culture seems like a bunch of beautifully mixed flower banquets. Indian culture has a close connection with flowers. Right from sunrise to sunset, flowers are the inevitable part for the Indians. In India, people start there day by offering flowers to their goddesses. Besides, flowers they are used on occasions such as weddings, parties and much more. They also used for medical practices. Flowers are an important part of living in Indian culture and traditions. So the market is growing continuously as the population increases.In all Indian weddings, you will find many types of flowers. In Ayurveda, various different flowers are used as healing properties. You can give fresh and beautiful flowers to the patient for feeling better. This shows the demand for the flowers is on the higher side in India. The main challenge here is the logistic advancement as the fresh flower has to reach the customer without even fading a single petal.

 

PROJECT REPORT

Anthurium flower cultivation

address

Introduction

Flowers denote purity, strength, and selflessness. They inspire the entire human race to follow the path of righteousness. The sight of beautiful fresh flowers has a calming and positive effect on spectators, which is why they hold a special place in the history of humanity since time immemorial.The Indian Floriculture market was worth INR 188.7 Billion in 2019. Floriculture also known as flower farming refers to the cultivation of flowering and ornamental plants. Although flowers have been an integral part of the Indian society and were cultivated for various purposes ranging from aesthetic to social and religious purposes, the commercial floriculture industry has been of recent origin. A strong increase in the demand for cut and loose flowers has made floriculture as one of the important commercial trades in Indian agriculture.While exports remain a key motivator for cultivators, the domestic demand for flowers is also increasing exponentially, especially in the metros and larger cities. Modernization and growing western cultural influences have driven consumers to buy flowers on a number of occasions like valentine’s day, marriages, anniversaries, birthdays, friendship day, Mother’s Day, Father’s Day etc. Large scale consumption of flowers is also carried out throughout the country during religious festivals.The metros and the larger Indian cities currently represent major consumers of flowers in the country. As a result of increasing urbanization and influence of western cultures, “saying it with flowers” is becoming quite popular on a number of occasions such as Valentine’s Day, birthdays, festivals, anniversaries, marriages, farewell parties, religious ceremonies, etc. We expect the consumption of flowers to increase further as trends of urbanization and influence of western culture is expected to increase further in the coming years. Flowers are a symbol of strength, purity, and generosity. When you see beautiful and fresh flowers they have a peaceful and positive effect on the viewer.In all Indian weddings, you will find many types of flowers. Right from stage decorations to bridal makeup, you will find flowers.So the market for different type of flowers are varying in India , so the industry has huge potential in India as well as abroad.

Market potential & Strategy

In India, flowers have the utmost importance in every occasion. Flowers have traditional or spiritual significance in India. Indian culture is a blend of several subcultures. Indian culture seems like a bunch of beautifully mixed flower banquets. Indian culture has a close connection with flowers. Right from sunrise to sunset, flowers are the inevitable part for the Indians. In India, people start there day by offering flowers to their goddesses. Besides, flowers they are used on occasions such as weddings, parties and much more. They also used for medical practices. Flowers are an important part of living in Indian culture and traditions. So the market is growing continuously as the population increases.In all Indian weddings, you will find many types of flowers. In Ayurveda, various different flowers are used as healing properties. You can give fresh and beautiful flowers to the patient for feeling better. This shows the demand for the flowers is on the higher side in India. The main challenge here is the logistic advancement as the fresh flower has to reach the customer without even fading a single petal.

Project at a glance

Name & Address of Unit

Floriculture business

address

Details of unit
Phone : 1236
Constitution : Proprietership
Total project cost : *******
Fixed Capital : *******
Working Capital : *******
Total Bank loan : *******
Promoter(s) contribution : *******
Term loan : *******
Name & address of promoter(s)
Name : Your name
Designation : Founder

Project Feasibility Ratio

Debt Service Coverage Ratio (Average) :1.87
Current ratio (Average) :2.63
Year 1Year 2Year 3Year 4Year 5
Current ratio 1.53 2.06 2.62 3.19 3.76
Quick ratio 1.13 1.56 2.10 2.64 3.18
Interest coverage ratio 3.87 5.55 7.00 9.48 14.71
Debt equity ratio 2.863 2.080 1.528 1.020 0.542
TOL/TNW 3.02 1.45 0.79 0.43 0.21
DSCR 1.65 1.86 1.90 1.94 1.97
Gross profit Sales Percentage % 29.23 % 28.54 % 28.18 % 27.86 % 27.50 %
Net profit Sales Percentage % 10.84 % 10.56 % 11.10 % 11.57 % 11.90 %
BEP in % of installed capacity % 49.90 % 27.12 % 27.12 % 27.12 % 27.12 %
BEP in sales of Rs 2,620,800.00 1,840,695.65 1,972,173.91 2,103,652.17 2,235,130.43
Return On Capital Employed 0.26 0.34 0.34 0.33 0.33

Project Feasibility graph

Revenue v/s Expense Expense Splitup
 
Revenue
 
Expense
Net profit Sales % Quick ratio

Project Cost

Sl. no Item Amount Rs
1 Working Capital *******
Total *******

 

Working Capital Computation

Sl. no Item Amount Rs
1 Consumables / stock in hand *******
2 Work in progress *******
3 Finished goods *******
4 Working expense. *******
5 Receivables/Sundry debtors *******
6 Payables *******
7 Total working capital *******
8 Own Contribution *******

Total Yearly Expense

Sl. no Item Amount Rs
Total *******

Application of Fund

Sl. no Item Subsidy % No. Rate Amount Rs
Total Investment *******
Total Subsidy *******
Net Investment *******

Means of Finance

Sl. no Item Amount
1 Term Loan *******
2 Working capital Loan *******
3 Total loan *******
4 Term Loan contribution *******
5 Working capital contribution *******

Profitability Statement

Year 1(!*) Year 2 Year 3 Year 4 Year 5
Revenue from operation
Sales ***** ***** ***** ***** *****
Add :
Closing stock 0.00 0.00 0.00 0.00 0.00
Total ***** ***** ***** ***** *****
Less :
Opening stock 0.00 0.00 0.00 0.00 0.00
Stock purchase ***** ***** ***** ***** *****
Salary ***** ***** ***** ***** *****
Repairs and maintenance charges ***** ***** ***** ***** *****
gas ***** ***** ***** ***** *****
ELECTRICITY bill ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Gross profit ***** ***** ***** ***** *****
Less :
Rent ***** ***** ***** ***** *****
Telephone/Postal &internet charge ***** ***** ***** ***** *****
Total ***** 0***** ***** ***** *****
Depreciation ***** ***** ***** ***** *****
Interest on TL ***** ***** ***** ***** *****
Interest on WC ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Profit before tax ***** ***** ***** ***** *****
Income Tax ***** ***** ***** ***** *****
Profit after tax ***** ***** ***** ***** *****

Cash flow statement

Cash Inflow Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
Capital 0.63 0.00 0.00 0.00 0.00 0.00
Subsidy 0.00 0.00 0.00 0.00 0.00 0.00
Termloan ***** 0.00 0.00 0.00 0.00 0.00
Profit before tax with interest 0.00 ***** ***** ***** ***** *****
Increase in WC loan 0.00 0.00 0.00 0.00 0.00 0.00
Depreciation 0.00 ***** ***** ***** ***** *****
Increase in Current liability 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Inflow ***** ***** ***** ***** ***** *****
Cash Outflow
Fixed Assets ***** ***** ***** ***** ***** *****
Increase in Current asset 0.00 0.00 0.00 0.00 0.00
Interest on TL 0.00 ***** ***** ***** ***** *****
Interest on WC 0.00 0.00 0.00 0.00 0.00 0.00
Income Tax 0.00 ***** ***** ***** ***** *****
Decrease in Term loan ***** ***** ***** ***** *****
Drawing 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Outflow ***** ***** ***** ***** ***** *****
Opening balance ***** ***** ***** ***** ***** *****
Net Cashflow 0.00 ***** ***** ***** ***** *****
Closing balance 0.00 ***** ***** ***** ***** *****

Balance sheet

Liability Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
A. Share holders funds
Capital ***** ***** ***** ***** ***** *****
Reserve & Surplus 0.00 ***** ***** ***** ***** *****
B.Non current Liabilities
Termloan ***** ***** ***** ***** ***** *****
C.Current Liabilities
Working capital loan 0.00 0.00 0.00 0.00 0.00 0.00
Account payable 0.00 0.00 0.00 0.00 0.00
Total Liability ***** ***** ***** ***** ***** *****
Asset
A. Non current Assets
Fixed Assets ***** ***** ***** ***** ***** *****
B. Current Assets
Inventory 0.00 0.00 0.00 0.00 0.00 0.00
Trade receivables 0.00 0.00 0.00 0.00 0.00 0.00
Cash and cash equivalence ***** ***** ***** ***** ***** *****
Total Asset ***** ***** ***** ***** ***** *****

Repayment of Term loan

Year Installment Outstanding at the beginning Principal repayment Interest Amount paid Outstanding at the end
1 1 ***** ***** ***** ***** *****
1 2 ***** ***** ***** ***** *****
1 3 ***** ***** ***** ***** *****
1 4 ***** ***** ***** ***** *****
1 5 ***** ***** ***** ***** *****
| | | | | | |
| | | | | | |
5 56 ***** ***** ***** ***** *****
5 57 ***** ***** ***** ***** *****
5 58 ***** ***** ***** ***** *****
5 59 ***** ***** ***** ***** *****
5 60 ***** ***** ***** ***** *****

Debt Service Coverage Ratio

Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Receipts
a).Net Profit 0.00 0.00 0.00 0.00 0.00
b).Depreciation 0.00 0.00 0.00 0.00 0.30
c).Interest on termloan 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00
Repayments
a).Loan Principal 0.00 0.00 0.00 0.00 0.00
b).Interest on termloan 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00
DSCR 0.00 0.00 0.00 0.00 0.00

Depreciation

Particulars Rate Year 1 Year 2 Year 3 Year 4 Year 5
Building 0.00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Computers/ Printers /Photocopier/Electronic gadget 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Furniture & fixtures 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Racks & storage/Interior works 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
new item 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
new 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Air-conditioning 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Other investments 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Total less depreciation 0.00 0.00 0.00 0.00 0.00
Total written down value 0.00 0.00 0.00 0.00 0.00

Conclusion

The project as a whole describes the scope and viability of the Trading industry and mainly of the financial, technical and its market potential.The project guarantee sufficient fund to repay the loan and also give a good return on capital investment. When analyzing the social- economic impact, this project is able to generate an employment of 5 and above. It will cater the demand of Trading and thus helps the other business entities to increase the production and service which provide service and support to this industry. Thus more cyclic employment and livelihood generation. So in all ways, we can conclude the project is technically and socially viable and commercially sound too.

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