Fundamentals of International Management
Business Plan – The Elegant Flora (Rose and Gerbera growers and distributors)
EPGDIB (2019-2020), Section-A, Group- J
Indian Institute of Foreign Trade
IIFT Bhawan, B-21, NRPC Colony, Block B, Qutab Institutional Area, New Delhi, Delhi 110016
Group Members:
1)
2)
3)
4)
Puneet Trivedi (30)
Rahul (31)
Shiban Singh (38)
Hemlata Verma (18)
[Course Coordinator – Dr. Venkatesan]
1
PROJECT AT A GLANCE:
The Elegant Flora is setting up a 5-acre floriculture production using Hi-Tech Agriculture, 1000 sq. mt.
cold storage unit and 1000 sq. mt. unit for packaging and distribution of the high-quality flowers to the
potential market using the greenhouse/poly house farming. The total cost of the project is Rs. 10 crores and
it is proposed to be self-finance.
The proposed production facility will be located at Muradnagar Ghaziabad UP to fulfil the need of Dutch
Rose and Gerbera flower of Delhi NCR and potentially distribute to other states in India. The company has
a unique business model and product/service concept. The proposed project shall comprise Dutch Rose
cultivation/production in 2 Acre land with 4 greenhouse of 2080 sq. meter of each and Gerbera
cultivation/production in 2 Acre land with 4 greenhouse of 2080 sq. meter of each. Along with greenhouse
for production the company will set up 1000 Sq. mt. of land for cold storage and 1000 sq. mt. of land for
packaging next to the production facility. The company will purchase high end equipment and machineries
for cultivation and post-harvest management. The plan will be holding at-least 5 cold storage trucks for
distribution of the flower to the potential markets or mandi and buyers as fresh as possible.
Project Cost:
S. No
1
Particulars
Land
3
4
Crop - Rose
Crop - Gerbera
5
Cold Storage Facility
– 1000 Sq Mt
6
Construction of
Packaging Unit 1000
sq. mt.
7
Cold Storage truck
for distribution
Total Cost
8
Details
5-acre land to
purchase
-Cost of Poly house
with drip & fogger,
-Cost of Cultivation
-Cost ceiling per acre
with add on
components in
project mode
-Cost of Setting up
and maintaining a
storage facility
-Cost of setting up
normal storage
facility and labor’s
house for
accommodation
Amount (Rs in Lacs)
500
285
75
25
100
985
2
Sources of Funds:
S. No
1
3
Sources
Amount (Rs in Lacs)
814
171
Promoters Contribution
Subsidy from Indian Govt
Other Requirements:
S. No
1
Sources
Manpower Requirement
12
Board of Directors and Share Percentage:
S. No
1
2
3
4
Name
Rahul
Puneet Trivedi
Shiban Singh
Hemlata Verma
Designation
Director
Director
Director
Director
Percentage Share
25%
25%
25%
25%
THE IDEA:
Now a days, the farming business becomes more and more competitive with the entry of fast changing
and modern farming. Success in modern farming depends on a proper combination of Money,
Management, and Marketing.
The basic idea of firm ( The Elegant Flora ) is to cultivate, of high quality Rose and Gerbera flowers by
efficient use of the capital to acquire any kind of productive assets, land and/or machinery from
improved seeds to modern crop protection solutions, to mobile technology for farmers in the fields, for
making flowers available fresher, safer and healthier along the chain, the foriculture and food system of
the future can be more productive, more sustainable, more efficient and more interconnected with the
timely support.
Due to increasing urbanization, high value exotic flowers are always in demand throughout the year all
over the country. Moreover, with protected cultivation system increased productivity and quality of the
product is assured. This type of cultivation has opened a new dimension to the farm sector towards
enhancing income quite folds. Thus, more progressive farmers and agri entrepreneurs are engaging
themselves with this cultivation practices which can be established in peri urban and urban areas also
although high initial investment are required for it as compared to cultivation under open field condition
Besides, protected cultivation of flowers offers distinct advantages of increasing the productivity 8 to 12
times, higher yield from smaller unit area with lesser usage of water, protection from abiotic & biotic
stresses, off-season production and year-round availability, uniform and healthy crop. Owing to these
advantages the firm Elegant flora is decided to capitalize on the benefits for profit maximization.
3
Background and Detail
Precision farming is generally defined as information and technology-based farm management system
to identify, analyses and manage variability within fields for optimum profitability, sustainability and
protection of the land resource. Precision farming is concerned more with managing small areas within
fields rather than on the fields itself and presumes that the farmer who effectively uses information
earns higher returns than those who do not. However, in the Indian Context with its severe land
fragmentation precision farming must do more with the precise application of agricultural inputs based
on soil, weather and crop requirement to maximize sustainable productivity, quality and profitability.
There are two approaches viz., Greenhouse / poly house system and open-air system.
Growing of crops in green houses has proved to be the best way of utilizing the crops potential.
Computerized control of irrigation, fertilization (Fertigation) and microclimate in green house enable
precise monitoring of the most important production practices. In temperate regions where the climatic
conditions are extremely adverse and no crops can be grown high value crops can be grown
continuously by providing protection from the adverse climatic conditions such as wind, cold,
precipitation, excessive radiation, extreme temperature, insects and diseases through Greenhouse
Technology.
What is Green House:
Greenhouse is a house covered with transparent material under which the crops can be grown in
partially or fully controlled climatic conditions.
This transparent covering material may be glass/plastic based on which it can be called Glass House/
Poly House.
Climatic factors that can be controlled under Poly House:
– Solar Radiation
– Temperature
– Carbon-di-oxide
– Humidity
– Air movement
4
Advantages of Cultivation under Poly House:
•
•
•
•
•
•
•
The yield may be 10-12 times higher
Production of quality produce free of blemishes.
Off-season/ Year-round production of F&V & floriculture
Efficient utilization of Water & chemicals, pesticides to control pest and diseases.
Disease-free and genetically superior transplants can be produced continuously.
Hardening of tissue cultured plants.
Modern techniques of Hydroponic (Soil less culture), Aeroponics and Nutrient film techniques
are possible only under greenhouse cultivation.
PROMOTORS PROFILE
The elegant flora is a partnership Venture between Delhi based entrepreneurs Rahul, Shibban Singh,
Puneet Trivadi and Hemlata Singh, which owns 100% share in the proportion of 25% share each partner
in the Company. The elegant flora is coming up with a 5-floriculture production facility at Ghaziabad, Uttar
Pradesh.
The Elegant Flora Founded in 2019, will be the fastest growing technology-based farming and cultivation
company in India. The firm will own and operates three brands – Dutch Rose Premier, Gerbera and Red
roses in the high export quality flowers.
The firm will distribute the flower in pan-India by making a strong presence across all major metros
including Bengaluru, Chennai, Delhi, Hyderabad & Mumbai.
All the partners are equal shareholder and Shiban Singh will be the managing partner for the operation of
the Hotel.
He has expertise in 3 Key Business Areas
• Supply Chain and Material Handling.
• Procurement and Distribution of Raw Materials.
• Packaging and workforce management.
.
The firm will command market leadership in India with this state-of-the-art flower cultivation and
packaging facilities in various Delhi NCR of India accredited with quality certificates like ISO 9001 & ISO
14000. The firm will not only limit its distribution and operations in India but have plans to go beyond
Indian boundaries and export the Dutch Roses and Gerbera flowers to European markets.
5
MANAGEMENT PROFILE
The Elegant Flora is a professionally managed and has put together a management team that comprises
of senior professionals from the supply chain, agriculture and technology industry having wide
experience in the area of Business development, Agriculture, Operations, Finance, Technical, Marketing
etc. Brief profile of the key members of the corporate team is as under: Particulars
Shiban Singh
(Managing Director)
Rahul
(Executive Vice President Projects & Engineering Services)
Hemlata Verma
(Vice President - Human
Resources)
Puneet Trivedi
(Vice President - Business
Development)
Details
Shiban Singh is the Co-Founder and Managing Director of The
Elegant Flora. Shiban holds an executive MBA in International
Management and a B.Tech. (Electrical Engineering) from IIT Delhi
and a PGDBM (Finance and Marketing) from IIM Kolkata. He has
been with the different FMCG companies for most of his
professional career. Shiban worked for over 15 years in the FMCG
sector as head of supply chain, where his last role was as Chief
Operating Officer of FACES CANADA and just prior to leaving, the
Senior Vice President of Special Projects.
Rahul is an alumnus of one of the major IT company - IBM. He
started his career with The IBM India Pvt Ltd Bangalore in 2008
and has been handling and managing large team to deliver the
complex technical projects for over 12 years. He has worked in
India and overseas and has been the GM for several startups. He
is a highly respected figure in the Indian technical industry and
co-founder of the elegant flora. His role will be to manage the
high-performance teams across multiple functions and
geographies
.
Hemlata is a post graduate in International Business
Management and Industrial Relations. Her last assignment was as
Senior Manager-Human Resources and Patents Filling with
Mahindra Technologies. Over a career spanning 11 years, she has
worked with many companies in, Gurgaon.
Puneet is a graduate from the IIFT and experts in Business
Development He was earlier head of Business at Red Fox
consultancy. Puneet has previously worked with GE Capital and
the Taj Group of Hotels.
John Paul
(Chief Operating Officer )
John is a graduate from the Welcome group Graduate School of
Hotel Administration, Manipal. He was earlier head of operations
at Red Fox Hotels. John has previously worked with GE Capital
and the Taj Group of Hotels.
Nancy Sharma
(Chief Financial Officer)
Nancy is a Chartered Accountant. Her last assignment was as
Head-Finance and Accounts, Leroy Somer (Emerson Group).
Nancy has close to over two decades of experience in the finance
and commercial function and has also worked with DHL
Worldwide Express and Onida Finance.
6
VISION AND CONCEPT
VISION
To cultivate and distribute a chain of branded up-market, full service, moderately priced (floriculture
cultivation for Dutch Roses and Gerbera flowers in India (named The Elegant Flora), located within prime
business districts (or other high demand areas) to cater to the economy segment (i.e. the value conscious
flower buyers looking for high quality and fresh flowers at a convenient distribution for different segments
of potential customers in hotels, marriage halls , destination wedding consultancies).
CONCEPT
Flowers in India presents some interesting contrasts when compared with the agriculture industry in
developed markets. India with a population of over a billion is a big market. Domestic flower industry is
growing at an annual growth rate of 20-25%. Flower consumption in the cities and major towns is
reportedly growing with at 40% per annum. In India flowers specially rose and gerbera are used for
different occasions including but not limited to marriages, devotional, to express love and affection, while
many growers are at par with equivalent offerings internationally, there is a near complete absence of
high-quality cultivation of roses and gerbera in India. The elegant flora has been created to fill this gap to
cater to the needs of the discerning and value conscious business, looking for fresh, high quality and highly
affordable flowers.
BUSINESS MODEL:
KEY ASSUMPTIONS
The business model is predicated on four assumptions:
COMPETITION
There is no real competition in the flower market segment in India at present: the current competitive
set is fragmented, of generally very poor quality with no brand recognition. The only segment which
provides an internationally acceptable product/brand is the exporters supplying to European market
and do not provide the domestic need due to its high cost economics, has a cultural inability to compete
successfully in domestic flower segment.
NICHE MARKETS
With fragrance and flowers being increasingly measured in terms of value and consumers in India –
especially the young – as they buy flowers on occasions like Valentine’s Day, Friendship day, etc. Apart
from this, there is also a huge spurt in the demand for flowers during festivals. This growth in demand
for flowers has impacted its presence in Niche market.
7
VALUE FOR MONEY
The largest demand segment in India is the mid-market domestic business are consumers of marriage,
special day celebration and traditional devotional consumers, due to the absence of an affordable
quality product, is currently forced to purchase low quality flowers or roses and gerbera. Taking the high
price sensitivity of this segment into account and being flowers are perishable commodity, there
appears to be a large unfulfilled demand for a reasonably priced quality product.
COST EFFICIENT DESIGN
Based on the international business model of growers and producers of high quality cut flowers specially
Dutch roses and gerbera from European markets and Netherlands, it is possible to build a chain of
identical high quality flowers cultivation by using the latest greenhouse technologies and fulfil the
demand by utilizing the information technology with very efficient cost ratios i.e. the poly house and
cultivation facilities will be designed to generate a minimum 40% EBITDA on the desired price point
rather than the current practice of growing flowers on the basis of cost plus.
TARGET CUSTOMERS MARKET
Mostly buyers of flower in Delhi NCR and metro cities are for marriage functions and devotional purpose
with occasional high demand for special days like valentine’s day, friendship day or mother’s day, five
star hotels and hospitality business also requires fresh flowers to attract the customers on daily basis
OUR CLIENTS
The targeted customer will be the buyers in Ghazipur Phool Mandi in Delhi , All five star , four star and
three star hotels in Delhi and NCR and florist in metro cities
BUSINESS METHODS
Depending on the species and varieties, roses have various uses. They may be used as cut flowers, and
garden plants. They may also be used in making rose oil, rose water and gulkhand. Model project is on
production of roses for use as cut flowers, which have an important place in preparation of bouquets,
floral arrangements, worship, social occasions and presentation of gifts. Measured in terms of volume of
trade in the international market cut roses rank first in popularity. Further, with the advancement in
production and marketing of cut roses and also on account of recent economic liberalisation there has
been an upsurge of interest in production of cut roses in plastic green houses in India.
CLIMATE
Plenty of light, humid and moderate temperature ranging from 150 C to 280 C may be considered as
ideal conditions for roses in the tropical and subtropical climate of India. At temperature below 150 C
roses can be grown, but the interval between flushes become longer. At higher temperature, say above
300 C, roses can be grown provided high humidity is maintained and evaporation is slowed down.
8
SOIL
Well drained soil rich in organic matter and oxygen is good for roses. Organic matter as high as 30 per
cent in the top 30 cm of the growing beds is preferred by many growers. The pH of the soil should be
around 6 to 6.5.
BED PREPARATION
Top width – 90 cm
Bottom width – 100 cm
Height – 45 cm
Path way – 50 cm
PLANTING DISTANCE
Plant to Plant distance: 17 cm Row to Row distance 45 cm
PLANTING MATERIAL
Rose plant used for plantation should be 2-3-month-old and have minimum two dark green colour
leaves. Bud union of rose plant should not be covered with soil. It should be 2-3 cm above the ground
level. The sprout coming out of the union should face towards the path at the time of plantation. Rose
plants are planted in a zigzag method on the bed.
TYPES OF ROSES AND VARIETIES
The major types of roses which are commercially important are as under:-
Hybrid Tea Roses : These have large flowers (4 cm.) long stems (125 cm). Yield varies from
100-200 stems/sqm. Hybrid Teas fetch higher price than other types. A few wellknown varieties of this
group are SONIA, VIVALDI, TINEKE, MELODY, DARLING and ONLY LOVE.
Floribunda Roses : These have small flowers (2.5 cm) and shorter stems (less than 60 cm), but
yield much higher than other types. Examples of this type are FRISCO, MERCEDES, JAGUAR, KISS and
FLORENCE.
Spray Roses : A single stem of this type may carry 5-6 flowers, but stem yield per sqm is low.
Important varieties belonging to the type are EVELIEN, JOY and NIKITA.
MANURES AND FERTILIZERS
Organic manures are required to be added so that top 30 cm of the soil has 30% organic matter content.
Application of nutrients should be based on analysis of soil and plant. In the present model the cost has
been estimated based on 250 fertigation days and 1.2g dose of fertilizers per day per sq. meter.
9
CULTURAL PRACTICES
For proper growth of rose plant and high production special cultural practices are to be carried out as
follows:
i). Initial plant development / mother shoot bending: If the young plant is allowed to flower
immediately after planting there is serious risk that the important structural frame work of the plant will
be impaired. The various types of plants require different treatment. First flower is pinched after one
month from the date of plantation so that 2 to 3 eyes bud will sprout on main branch to grow as
branches and these branches in turn will form buds. When the plant attains this stage of growth, the
mother shoot is to be bent towards the direction of path. This cultural operation in rose plants is done
to initiate bottom break ground shoot. The maximum leaf area is required to build up a strong root
system. The mother shoot is bent nearer to the bud joint.
ii). Plant structure development: To develop more growing points and plant structure
development plays an important role. After planting ground shoot will start growing from crown of
plant. The weak ground shoots should be bent at ground level, for forming a basic and strong frame
work of plant structure for production throughout their life cycle. the strong ground shoots should be
cut at 5th five pair of leaves after four and half months from the date of plantation. The medium ground
shoots should be cut at 2nd or 3rd five of leaves.
iii). Bending in roses: Bending helps in maintaining enough leaf area on the plants. The maximum leaf
area is required to build up a strong root system. Leaves are important for producing carbohydrates. The
mass of leaves is also known as the lungs of the plant. The growing suckers should be removed in order
to check new growth on the bended stem. The buds should be removed from the bended stem in order
to check the incidence of thrips and bud rot (botrytis). Only weak and blind shoots are selected for
bending. Bending breaks apical dominance of the plant. It is continuous process and hence carried out
throughout the life cycle. Bending should be such that most of the stems lay below horizontal. In
summer season it is generally advised not to go for bending as it provides favourable condition for
mite’s incidence. Bending is done on 1st or 2nd five pair of leaves. One can also grow roses in green
house without bending by keeping some blind shoots on plants in standing position for extra
photosynthesis and uptake of water nutrients. While bending the stems, the care should be taken that
the stem will not break and the leaves will not touch the soil on the bed.
iv). Disbudding: Standard varieties are those with one flower on each stem. But as nearly all varieties
produce some side buds below the center bud. these side buds have to be removed. The removal of
these buds is known as disbudding. It should not be done too early or too late. If done too early it may
harm leaves and if done too late then large wounds in the upper leaf axil can take place. When bud
attain pea-size and shows slight colour then it is right time to do disbudding. For most spray varieties,
the centre crown bud is to be removed. Disbudding is generally done on weak stem so that it can
convert itself to thick stem and in future cuts can be taken. Thick stem produces strong sprouts whereas
then stem gives out weak sprouts
v). Pinching: Removal of unwanted vegetative growth from the axil of leaf below the terminal bud is
called pinching. This helps to get good quality flowers and buds and avoids wastage of energy in the
development of auxiliary bud if done at right stage and right time. It leads to apical dominance.
10
vi). Wild shoot (root stock) removal: Wild shoots are the unwanted growth that takes place at the
union on the root stock. They should be removed at the earliest as these will deplete nutrients and
checks growth and development of plant. They should not be cut but removed from its union by
pressing it with thumb in order to check its further sprouting.
vii). Support of the plants: The support system consists of bamboo / GI pipes / 'L' angles inserted on
both sides of bed at the start and end of the bed. Post are placed at intervals of 3m on both sides of the
bed, along the sides of bed, fastened at the posts at 30 cm – 40 cm intervals are 14 gauge GI wires or
plastic string to support the plant. Between the wires across the bed, thin strings can be tied to keep the
width of the bed constant. Support system makes intercultural operation easy and protects the buds
from being damaged by not allowing the stems bend into the path.
viii). Pruning: Stems are cut back leaving 4-5 nodes on the basic stock frame, removing all weak shoots
and redirecting the wayward ones. This may be practised in a phased manner so that flowering takes
place from September to March. Generally, flowering takes place 45 days after pruning.
IRRIGATION
Rose plant require a lot of water, at least 6mm/day i.e. 60cum/ha/day. A drainage line may be laid
below the beds for disposal of excess water.
PEST and DISEASES
The principal diseases of rose are
i. Downy Mildew
ii. Powdery Mildew
iii. Botrytis
iv. Pruning Dieback
v. Black leaf Spot
Major insect pests of the rose are
i. Red Spider Mite
ii. Leaf Roller
iii. Aphids
iv. Thrips
v. White Fly
Control
The preventive spray programme with a volume of 1500 litres/spray at an average interval of once in a
week is suggested. The chemicals could be as under.
• Dithane M-45 0.6 gm/litre
• Metasystox 1.25 ml/litre
• Karathane 1.00 ml/litre
11
HARVESTING
Roses should attain the right stage for harvesting. If cut too early, flowers miss reserve food and
therefore, may not develop into full flowers. If cut too late, longevity diminishes. As such, roses should
be cut just as the buds are opening, after the sepals have almost fully curled up and the colour is fully
visible. In small flowered varieties and Floribundas, the flowers are cut just when they begin to open the
cluster. The cutting may be done in the evening or early morning with long stem. The lower end of cut
stems are immediately placed in clean plastic buckets containing a clean solution of 500 ppm citric acid
or in chrysal - RVB. Thereafter, the buckets containing cut roses are brought to the grading and packing
Shed/Hall.
Harvesting Stages
S.No
Particulars
Place of cutting
Month from date of
plantation
1
Ground shoot cutting
At 5th five pair of leaves from
3 to 3.5
bottom of plant
2
First harvesting
2nd or 3rd five pair of leaves from
4.5 to 5
first cut
3
Second / Regular
2nd or 3rd five pair of leaves from
6th month onwards
harvesting
first cut
daily harvesting
The rose should be cut with the help of sharp cut and hold secateurs. Ground shoot cutting should be
done on 5th five pair of leaf then one or two eye buds sprout from lower leaves below the cut. These
sprouts will grow into flowers in the period of 35 to 50 days. This varies from variety to variety. Later on
the first harvest should be taken on 2nd or 3rd five pair of the leaves above the first cut. During summer
season or when there is less leaf area on plant it is always advisable to take cut on 3rd five pair of leaves
above the first cut. Always bend thin stems and take cut on 3rd five pair of leaves above the first cut.
Always bend thin stems and take cut on thick stems to get strong shoots.
The regular harvesting is done on 2nd five pair of leaves. Sometimes under cutting is also practiced as it
is an important technique to keep rose plants at reasonable height. Harvesting cut should be sharp and
inclined direction for avoiding the deposition of water or spray solution. When the temperature is low in
the green house harvesting is done only once i.e. during early morning hours. When there is high day
temperature it is necessary to take second harvesting in later afternoon.
Cut stages of roses play an important role in harvesting. Cut stages of roses for export is stage 0 and 1
whereas cut stage is 2 and 3 for domestic market.
12
YIELD
Average yield of roses is 30 to 35 stem/ plant per year.
GRADING
Flowers should be graded into different classes according to their qualities. Grading is done on a
mechanical grader or by hand grading tables or work stations.
PACKAGING
Packing comprises three steps: bunching, wrapping and packing.
The heads of roses are evened up and their stem tied with a rubber band into bunches in 10s, 20s, 25s,
or 50s depending on the ultimate market. They are cut so that all the stems are of the same length. The
bunches are placed in preservative solution and may be shifted to the cold store. They are brought back
to the packing hall and the buds are wrapped and bunches are sleeved in transport polyethylene. The
wrap is a 15-20 cm. wide plastic strip which acts as a cushion for the buds. Many different cardboard
boxes are used for packing. For long term transport it is best to use telescopic style boxes made of
corrugated fibreboard. The size could be 100 cm x 45 cm x 22 cm. There may be 400 to 1000 stems per
box and weight may vary from 14 to 18 kg/box. Depending on the market, the box is either filled with
one variety, one grade, or mixed colour one grade.
13
FINANCIAL PLAN and TURNOVER:
The details of estimated cost mean of finance, economics and financial viability is worked out for
Naturally Ventilated Poly house as follows.
The Elegant Flora Financial Plan - Unit Size = 5 acre (Land, Poly house, Distribution, Operations, Packaging,
Marketing)
Estimate Unit cost and means of Finance
Rate
Estimated Sub
Subsidy
Promotor's
Items
(Rs)
Unit
Cost
sidy
Amount
Contribution
Rs
%
50%
Poly House (Including
per
1
Thermal screen)
935 sq. mt 18,700,000 50%
9350000
9350000
per
2
Micro Irrigation System Drip
125 sq. mt
2500000
50%
1250000
1250000
Planting Material for Rose (7
Plants/m2, i.e total plants
per
3
70000
15
sq. mt
1050000
50%
525000
525000
Planting Material for Gerbera
(6 Plants/m2, i.e total plants
per
60000
30
sq. mt
1800000
50%
900000
900000
Land Preparation as per Table
per
4
A
20
sq. mt
400000
0%
0
400000
As
per
Recurring Expenses - Planting table
per
5
cost (for 1st year) - Rose
B
sq. mt
0
0%
0
0
Recurring Expenses - Planting
As
cost (for 1st year) – Gerbera
per
(Reducing Labor Cost as Same table
per
Labor with Rose is used)
B
sq. mt
0
0%
0
0
6
Land Purchase
50,000,000 0%
0
50,000,000
7
Cold Storage Construction
7,500,000 50%
3750000
3,750,000
Packaging Unit and Labor
8
Accommodation set up
2,500,000 50%
1250000
1,250,000
Transportation cold storage
5
9
Trucks
trucks
10,000,000 0%
0
10,000,000
Total Cost
94,450,000
17025000
77,425,000
14
Economic (Year wise Income and Expenditure) Economic (Year wise Income and Expenditure) - 7 Years Projection from 5-acre land (10000 sq. mt. for
Rose and 10000 sq. mt. for Gerbera)
Item/ Year
1
2
3
4
5
6
7
Income from
sale of flower
(As per table
C) for Rose
14268800 14268800 14268800 14268800 14268800 14268800 14268800
Income from
sale of flower
(As per table
C-1) for
Gerbera
17640000 17640000 17640000 17640000 17640000 17640000 17640000
Recurring cost
(Table B) for
Rose
3115300
2065300
2065300
2905300
2065300
2065300
2065300
Recurring cost
(Table B-1) for
Gerbera
3865300
2065300
2065300
4705300
2065300
2065300
3865300
Net profit (12)
24928200 27778200 27778200 24298200 27778200 27778200 25978200
Assumptions
Rates for the items viz. Poly house, Micro irrigation system (drip) and land preparation are taken
as prescribed under National Horticulture Board (NHB) guide lines/Department of Horticulture,
Haryana guide lines
1
2
Cost of
Planting
Material
3 Recurring Cost
4 Sale Price
Table A
s.no
1
2
3
Rs. 15/ - per sampling (The life of Rose plant is 07 years hence cost of planting Rose
plant is considered only for first year)
Rs. 30/ - per sampling (The life of Gerbera plant is 03 years hence cost of planting
Gerbera plant is considered for first, fourth and 7th year)
Assumptions are in table B
Rs. 8 for Rose and Rs. 10 for Gerbera
Land Preparation Cost
Particulars
Pasteurized Composite and Neem Cake @ Rs 10/m2
Chemical Fertilizer and Micro Nutrients @ Rs 5/m2
Fumigation /Bed Preparation cost @ Rs 5/m2
Total
5 Acre
200000
100000
100000
400000
15
Table B
s.no
1
2
3
4
5
6
7
8
9
Table B-I
s.no
1
2
3
4
5
6
Table BII
s.no
1
2
3
4
6
Table B-III
s.no
1
2
3
4
5
6
Year wise Breakup of Recurring Cost
Item/Year
Fertigation Cost Table B-I
Spraying Cost Table B-II
Packaging Cost Table B-III
Grading Cost lumsum
Transportation Cost Table B-IV
Irrigation Cost (flat @ Rs 5000/Month for 8 Months)
Electricity Cost (flat @ 5000/Month for 8 Months)
Labor Cost Table B-V
Insurance @ 5% on depreciated value of poly house
and micro irrigation System *
Total Recurring Cost **
Amount in Rs
From Year 1 to 7
370800
309000
227500
100000
273000
40000
40000
175000
530,000
2065300
Fertilizer cost
Particular
Fertilizers dose (Kg/ day )
Avg. rate of fert. Rs/ kg
Fertigation days
Fertigation cost ( 1*2*3)
Contingency @ 3% of Fertigation cost
Total Fertigation cost(Rs.)
Amount /Quantity
24
60
250
360000
10800
370800
Spraying cost
Particular
Spraying cost/ day
Spraying days
Spraying Cost (1*2)
Contingency @ 3% of spraying cost
Total fertigation cost(Rs.)
Amount /Quantity
4000
75
300000
9000
309000
Packing cost
Particular
Rate/Box
Total Packaging cost/Box
Total No of Cut Flowers
Capacity/Box in Nos
Total No of Boxes
Total Packaging Cost
Amount /Quantity
50
50
3640000
800
4550
227500
16
Table B-IV
s.no
1
2
3
Table BV
s.no
1
2
3
Transportation Cost
Particular
Transportation Cost/Box
Total No of Boxes to be transported/year
Total Transportation Cost (Rs)
Amount /Quantity
60
4550
273000
Labor Cost
Particular
Total Man Days
Avg Sal/Day/Head
Total Wages
Amount /Quantity
350
500
175000
* Insurance premium may vary from insurance company to company
During 4th year Rs 1680000 has been estimated towards poly house film replacement cost in
addition to recurring cost mentioned above. (Required film area is 2.1 times of 20000 m2 i.e.
21000m2x Rs 40/m2 = Rs 1680000)
**The life of Rose plant is 07 years. Hence cost of planting material (@ Rs.15/plant for 70000 plant
i.e. 1,050,000) is considered for 1st year.
***The life of Gerbera plant is 03 years. Hence cost of planting material (@ Rs.30/plant for 60000
plant i.e. 1800000) is considered for 1st year, 4th and 7th year
Table C
s.no
1
2
3
4
5
Production and Income for Unit 10000 sq.mt. - Rose
Particulars
Amount
Plant Production @ 7 plants/m2
70000
Total Production @ 26 cut flowers/plant
1820000
Less: Loss of Production 2%
36400
Production Available for sale
1783600
Income from sale of produce cut flower @ 8/rose
14268800
Table C1
Production and Income for Unit 10000 sq mt - Gerbera
Particulars
Amount
Plant Production @ 6 plants/m2
60000
Total Production @ 25 cut flowers/plant
1500000
Less: Loss of Production 2%
30000
Production Available for sale
1470000
Income from sale of produce cut flower @ 12/rose
17640000
s.no
1
2
3
4
5
17
OUR PRODUCTS:
Collection
THE RED COLLECTION
Category
ROSE
THE LIGHT PINK COLLECTION
THE DARK PINK COLLECTION
THE PURPLE COLLECTION
THE YELLOW COLLECTION
THE WHITE COLLECTION
THE ORANGE COLLECTION
THE PEACH COLLECTION
THE BI-COLOR COLLECTION
THE GERBERA COLLECTION
GERBERA
Brand
TOP SECRET
AQUA
REVIVAL
WHAM
ADAMMA
HOT SHOT
NEW ORLEANS
DEEP PURPLE
GOLD STRIKE
SOLAIRE
PEGASSO
AVALANCHE
TROPICAL AMAZONE
PEACH AVALANCHE
HIGH & MAGIC
JUMILIA
ESPANA
CONTRAS
Orange Gerbera Daisy
White Gerbera
Gerbera viridifolia
Gerbera jamesonii
Gerbera × hybrida
Red Gerbera Daisies
Gerbera with pink and white ray florets
Gerbera jamesonii in Orange
Orange Gerbera in a pot on a sunny
terrace, Calcutta
Sepals of daisy
18
THE RED COLLECTION
TOP SECRET
THE LIGHT PINK COLLECTION
REVIVAL
THE LIGHT PINK COLLECTION
AQUA
THE LIGHT PINK COLLECTION
WHAM
19
THE DARK PINK COLLECTION
ADAMMA
THE PURPLE COLLECTION
NEW ORLEANS
THE DARK PINK COLLECTION
HOT SHOT
THE PURPLE COLLECTION
DEEP PURPLE
20
THE YELLOW COLLECTION
GOLD STRIKE
THE WHITE COLLECTION
PEGASSO
THE YELLOW COLLECTION
SOLAIRE
THE WHITE COLLECTION
AVALANCHE
21
THE PEACH COLLECTION
TROPICAL AMAZONE
THE BI-COLOR COLLECTION
HIGH & MAGIC
THE PEACH COLLECTION
PEACH AVALANCHE
THE BI-COLOR COLLECTION
JUMILIA
22
THE BI-COLOR COLLECTION
THE BI-COLOR COLLECTION
ESPANA
CONTRAST
Orange Gerbera Daisy
White Gerbera
23
Gerbera Viridifolia
Gerbera Jmesonii
Gerbera × hybrida
Red Gerbera Daisies
Gerbera with pink and white ray florets
Gerbera jamesonii in Orange
24
Orange Gerbera in a pot on a sunny terrace, Calcutta
Sepals of daisy
MARKET ANALYSIS SUMMARY:
Area under cultivation, production and
Productivity of Floriculture in three main states (2008-09)
Area
Production
Productivity
India/ State
(lakh ha)
(lakh Ton)
(kg/ ha)
India
33
12.5
490
Rajasthan
28.08
6.58
370
Haryana
4
4.5
1220
Gujarat
1.95
1.29
669
Table 1: showing major flower market in India and Online selling portal
MAJOR FLOWER MARKETS IN INDIA
Sl No
Detail of Market
1
K. R. Market (Bangalore)
2
Dadar Market in Mumbai
3
Gultekri Market in Pune
4
Flower Market in Madurai (TN)
5
Flower Market in Delhi
6
Jamalpur Flower Market, Ahmedabad
7
Chalai Market in Trivandrum (Kerala)
8
Flower Market in Lucknow (UP)
9
Malikghat bazaar (Calcutta)
10
Chennai (TN)
11
Jambagh Flower Market (Hyderabad)
25
ONLINE FLOWER SELLING PORTALS
Sl No
Detail of Portal
1
www.Fernspetals.com
2
www.Flowersura.com
3
www.Indiamart.com
Table 2: Indian Floriculture market Size
Year
Market
Size in INR
2017
2018
2023#
2024#
130 Billion
157 Billion
394 Billion
472 Billion
# Projected market Size.
The market is growing at CAGR of 20.10% from 2018 to 2024
Source of Fund for branding and marketing of the product: 1.7 Cr. will be utilized
from the Subsidy provided by govt
26
EXECUTIVE SUMMARY:
The Indian Floriculture market was worth INR 157 Billion in 2018. The market is further projected to
reach INR 472 Billion by 2024, growing at a CAGR of 20.1% during 2019-2024. 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 the influence of western culture is expected to
increase further in the coming years.
Apart from aesthetic and decorative purposes, a significant amount of flower consumption also takes
place in industrial applications. This includes flavours, fragrances, natural colour, medicines, etc. We
expect the consumption of these products to increase continuously during the forecast period creating a
positive impact on the floriculture industry.
Market Summary:
Based on the flower type, the market has been segmented as cut and loose flowers.
On the basis of sector, the market has been segmented as retail sector and institutional sector.
On the basis of the distribution channel, the market has been segmented as unorganised retail,
supermarkets and hypermarkets, florists, online and others. Unorganised retail currently accounts for
the highest share of the market.
On the basis of application, aesthetic and decorative applications currently account for the highest
share. Other applications include flavours and fragrances, natural colours, medicines and others.
The regional segmentation of the market has been provided both in terms of production and
consumption. Tamil Nadu is currently the largest producer of flowers in India.
The competitive landscape of the market has also been examined in the report and the profiles of key
players have also been provided.
This report provides a deep insight into the India floriculture market covering all its essential aspects.
This ranges from macro overview of the market to micro details of the industry performance, recent
trends, key market drivers and challenges, SWOT analysis, Porter's five forces analysis, value chain
analysis, etc. This report is a must-read for entrepreneurs, investors, researchers, consultants, business
strategists, and all those who have any kind of stake or are planning to foray into the Indian floriculture
market in any manner.
27
BUSIENSS INFORMATION:
The Elegant Flora
(Rose and Gerbera growers and distributors)
IIFT Bhawan, B-21, NRPC Colony,
Block B, Qutab Institutional Area,
New Delhi, Delhi 110016
Puneet_ec19@iift.edu
Rahul_ec19@iift.edu
Shiban_ec19@iift.edu
Hemlata_ec19@iift.edu
28