Project Profile- Gerbera Cultivation

Prepared By:

Samadhan Associates Pvt Ltd

22, Greenwood apartments
Gokhle Marg
Lucknow 226001
Mail : finance@samadhan.net
Web : www.samadhan.net

FLORCULTURE AT A GLANCE IN INDIA

India celebrates numerous festivals, rituals and special functions where use of flowers is a
compulsory component, without which there are no celebrations. Indian ancient heritage is
associated with flowers and floriculture. Floriculture is the growing of cut flowers, potted
flowers and foliage plants both in open fields and green houses. With increased living
standards, consumption of flowers in the households have increased and it has become a
common practice to use cut flowers for decoration in the modern and urban houses and
liberal usage in all important events for decoration in addition to loose flower usage in all
rituals, festivals, etc. Expanding hospitality industry has also added a new dimension for cut
flower consumption. This changing living habits have now opened a new vista in agribusiness i.e., commercial floriculture.

About 253.65 thousand hectares area was under floriculture in India during 2011-12.
Production was estimated to be 1.652 million tonnes of loose flowers and 750.66 million
tonnes of cut flowers in 2011-121.The consistent increase in demand for cut and loose flowers
have contributed to the trade of flowers in India. The cut flower crops grown in the country are
Rose, Gladiolus, Tuberose, Aster, Gerbera, Carnations, Anthurium, Lilium and Orchids, etc.

Introduction-Gerbera Cultivation.
The most beautiful ornament to be created by the lord himself is the flower. Even the thought of it
stimulates our senses. We just cant help feeling protective towards these tender creations of
God. And amongst them the gerbera might just be rated as the magnum opus.

These are from the sunflower family and are one the most common ornamental plants available.
The flower centre is black in colour. It may also have petals of different colour in the same flower.
It has been named after the great German naturalist Traugott gerber. Gerbera is a species of the
African flowering plants family Asteraceae. Gerbera contains natural occurring derivatives of
coumarin. Gerbera is available in many forms and in a variety of colours. They are one of the
most beautiful flowers that exist on this earth.

Gerberas have a long vase life; they are great flowers for adding colour to our lives. They
measure around 7 inches and they can be used in landscapes as beading plants for borders

and flower beds. Gerberas are flowering plants which are perennial in nature. They have a very
large capitulums, having a two lipped florets. It has the appearance of a single flower but
actually it is a hundred single flowers combined into one great entity known to laymen as the
gerbera.

In modern hi-tech method gerberas are grown in polyhouses. The quality of flowers produced is
superior, because inside climate or micro-climate such as temperature, humidity, light, ventilation
etc is controlled.
Gerbera cultivation
In modern Hi-tech method the cutflowers are grown in polyhouses. The quality of flowers
produced is superior, because inside climate or micro-climate such as temperature, humidity,
light,

ventilation

etc

is

controlled.

Even

water

application

is

also

controlled.

Requirement

Planting Medium
Planting medium should be adequately porous and well-drained. The optimum planting, density
recommended for large flowering cultivars is 8-10 plants/m2. Two row or 4-row planting systems
are generally used.
Planting Time

Planting can be done round the year but preferably during September-October. The plants should
be left undisturbed for 2 years for flower production (no separation of clumps). Treating plants with
GA3

(100

ppm)

results

in

early

flowering

having

long

stems.

during

nights.

Temperature
The

temperature

during

day

time

should

be

16-200C

and

120C

Cultivars
Jaffa, Sangria, Rosula, Oprab, Romona, Salina, Tecora and Starlight.
Harvesting
The harvesting stage is critical as the flowers should not be cut before the outer row of flowers
show pollen, or the flowers will wilt and close at night.

Storage
Optimum storage temperature (wet) for gerbera is 40C. The flowers could be stored efficiently up
to 4 weeks.
Yield
Most

modern

cultivars

of

gerbera

yield

250-300

good

quality

flowers/m2/year.

Marketing
These flowers are produced for export purpose and also for domestic market. Since cutflowers
are of specific type and produced in polyhouses they are fresh and tender and since they are
produced for specific purpose, great care is needed in their marketing viz. packing, handling,
storage and transport. There should be minimum handling and transport should be quick with
cooling and refrigeration facility.

Brief About Project

The cost of project and Means of Finance is as under:

PARTICULARS
Land
Land Development & Civil Work
Poly House & Equipments
Tractor & Refrigerated Van
Plantation

AMOUNT
12.16
18.30
76.50
14.20
24.71
TOTAL

145.87

The above cost shall be meet out as under :

PARTICULARS
Capital
Unsecured Loan
Capital Subsidy (Bridge Loan from Bank)
Term Loan from Bank

AMOUNT
25.40
24.00
36.47
60.00
145.87

TOTAL

LAND .

An area of land measuring 1.942 hectare (Approx. 4.5 Acre) is assumed to be purchased by
the proprietor. The cost of land is Rs. 12.16 Lacs as detailed below.
Sale Consideration
Rs. 10.00 Lacs
Stamp Duty
Rs. 1.96 Lacs
Registration ExpensesRs. 0.20 Lacs
_____________
Rs. 12.16 Lacs
_____________

LAND SITE DEVELOPMENT

A provision of Rs. 5.30 Lacs has been made towards Site development which includes land leveling,
development , Fencing etc has been taken @ 52/- per sq mt of Polyhouse ,.The total covered area is
10200 sq.mt which comes to 5.30 Lacs.
Poly House
The promoter is establishing a Horticulture farm for Gerbera Farming under Poly House. The cost of Poly
house and equipment is estimated to Rs. 76.50 Lacs as detailed hereunder :

Particulars
Erection of Poly House
(Incl. Drip System)

Area (Sq Mtr.)

10200

Rate
750.00

Amount
76.50

TOTAL

76.50

Irrigation
A provision of Rs. 3.00 Lacs has been made towards , Tubewell ,Water Harvesting Pond to reserve water
of rain for harvesting.
Infrastructure
A provision of infrastructural facilities like store Room, Pump house ,Labour quarter etc has made and
details are as under

Particulars
Store & Misc Civil Work
(Labour Quarter
Packing & Grading Center

Area (Sq Ft..)

2000
LS
1000

Rate
500.00
250
TOTAL

Amount
5.00
2.50
2.50
10.00

TOTAL

Amount
4.00
10.20
14.20

Agricultural Equipments & Ref. Van.

A Provision of .Rs.14.20 Lacs has been made toward detail is as under :

Particulars
Agricultural Equipments
Refregerated Van

PLANTATION
The promoter has proposed to establish a unit for cultivation of Gerbera Flower under Poly House. The
promoter is maintaining about 18000 Sq. Ft land out of which 10200 Sq. Mtr shall be used for poly house.
The cost of Plantation is workout to Rs. 28.68 Lacs which is calculated as under :

Area of Land
Land used for Poly House
Density per Sq. mtr
No. of Garbera Plant
Cost per Plant
Cost of Plant
Mortality @5%
Total Cost of Plant
Other Input Cost
Chemical & Fertilizers Etc
(@62300 per 3400 Sq. Mtr.)
Labour
Total Plantation Cost

19000
10200
8
81600
26.00
21.22
1.06
22.27

Sq. Mtr.
Sq. Mtr.

1.87
0.57

2.44
24.71

Capital & Unsecured Loan

The proprietor shall arrange Rs.49.40 Lacs as their margin in the form of capital and unsecured loan. The
promoter shall infuse Rs. 25.40 Lacs as capital and Rs. 24.00 Lacs shall be arrange from friends and
relatives as Unsecured loan. The promoters contribution comes to 33.86 % of total cost of project.
Term Loan

It is proposed to obtain a Term Loan of Rs. 60.00 lacs from Bank which is approx. 40% of total cost of
project The said loan shall repaid in 6 years with moratorium period of 9 months.
Capitalsubdiy/Bridge Loan
The unit is being setup under NHB capital subsidy scheme. The proposed unit shall also get capital
subsidy of Rs. 37.00 Lacs. It is proposed that a Bridge Loan of Rs. 37.00 Lacs shall be taken from Bank
which will against the capital subsidy and interest upto that period shall be charged in account and after
getting the capital subsidy no interest shall be charged in this account and the whole loan shall be adjusted
with the subsidy amount after five years.

Claculation of Plantation Cost.

Area of Land

19000

Sq. Mtr.

Land used for Poly House

Density per Sq. mtr
No. of Garbera Plant
Cost per Plant
Cost of Plant
Mortality @5%
Total Cost of Plant
Other Input Cost
Chemical & Fertilizers Etc
(@62300 per 3400 Sq. Mtr.)
Labour

10200
8
81600
26.00
21.22
1.05
22.27

Sq. Mtr.

1.87
0.57
2.44
24.71

Total Plantation Cost

Calculation Of Sale Of Plant

Year
2013( Half)
2014
2015
2016
2017
2018
2019
2020

No. of
Plant
81600
81600
81600
81600
81600
81600
81600
81600

Flower per
Plant
30.00
30.00
30.00
30.00
30.00
30.00
30.00
30.00

Production
1,224,000
2,448,000
2,448,000
2,448,000
2,448,000
2,448,000
2,448,000
2,448,000

Rate/per
Flower
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00

Amount
36.72
73.44
73.44
73.44
73.44
73.44
73.44
73.44

 Detail Of Salary Wages

Particular

Nos.

Salary Per
Month

Total

Annual
Salary

Manager

9000.00

9000.00

108,000.00

Marketing

6000.00

6000.00

72,000.00

Helpers/Labours

4500.00

36000.00

432,000.00

Accountant/Other

5000.00

10000.00

120,000.00
732,000.00
73,200.00

Add Fringe benefit @

10%
Total Salary
In Lacs

805,200.00
8.05

Detail Of Power Consumption

Total Power Load Required

No of Days

25
365

No of Hours
Total Power Expense

12
81687

Power Supply from DG Set

100%

HP

KWH

81687

COST OF POWER
Cost of power from DG Set
( @8/- per Unit)
Add : Fixed Cost
Add : Lubricants
Total Annual Power Expense

6.53
0.90
0.65
8.09

Detail Of Poly House & Others

Particulars

Area (Sq Mtr.)

Rate

Amount

Erection of Poly House

(Incl. Drip System)

10200

750.00

76.50

Detail Of Land Developtment & Civil Work

Particulars

Amount

Land Development (laveling , Fencingetc.)

Labour Quarter
Tube well & Pump House
Packing & Grading House
Irrigation System

5.30
2.50
5.00
2.50
3.00
18.30

TOTAL

 Detail Of Equipment
Particulars

Amount

Tractor

4.00

Refregerated Van & Other Tools

10.20
TOTAL

14.20

Calculation Of Depreciation On Fixed Assets.

Year

PARTICULARS

Cost Period

Addition during the year

2014-15

2016

2017

2018

2019

2019

TOTAL

12.16

24.71

76.50

32.50

145.87

12.16

24.71

76.50

32.50

12.16
12.16
12.16

4.12
20.59
8.24
12.35
24.71
8.24
28.82

5.74
70.76
10.61
60.15
9.02
51.13

12.16

8.24
20.58

7.67
43.46

1.63
30.88
3.09
27.79
2.78
25.01
2.50
22.51

145.87
11.48
134.38
21.94
112.44
24.71
20.04
117.11
18.41
98.70

Less : Depreciation
WDV at the end of Vth Year
Addition
Less : Depreciation

12.16

8.24
12.34

6.52
36.94

8.24

5.54

2.25
20.26
2.03

17.01
81.69
15.81

WDV at the end of VIth Year

Addition
Less : Depreciation
WDV at the end of VIth Year

12.16

4.10
25.00
8.24
20.86

31.40

18.23
1.82
16.41

65.88
14.77
51.11

2012-13

2013-14

LAND & SITE Plantation

PLANT &
CIVIL WORK
DEVPT.
MACHINERY

Less : Depreciation
WDV at the end of Ist Year
Less : Depreciation
WDV at the end of IInd Year
Addition
Less : Depreciation
WDV at the end of IIIrd Year
Addition
Less : Depreciation
WDV at the end of IVth Year

12.16

4.71
26.69

 Term Loan Repayment Schedule.

Year

Particulars

2013
2014
2015
2016
2017
2018
2019

Amount Borrowed
Balance Carried down
Balance Carried down
Balance Carried down
Balance Carried down
Balance Carried down
Balance Carried down

Op.
Balance
60.00
57.60
48.00
38.40
28.80
19.20
9.60

Interest

6.50
7.49
6.24
4.99
3.74
2.50
1.25

Total

66.50
65.09
54.24
43.39
32.54
21.70
10.85

Instalment

2.40
9.60
9.60
9.60
9.60
9.60
9.60

Total

Closing

Repayment

Balance

8.90
17.09
15.84
14.59
13.34
12.10
10.85

57.60
48.00
38.40
28.80
19.20
9.60
-

Bridge loan from bank ag. Capital subsidy

Year

Particulars

Op. Balance

Interest

Total

Instalment

Total
Repayment

Closing
Balance

2013
2014
2015
2016
2017

Amount Borrowed
Balance Carried down
Balance Carried down
Balance Carried down
Balance Carried down

37.00
37.00
37.00
37.00
37.00

4.01
4.81
-

41.01
41.81
37.00
37.00
37.00

4.01
4.81
-

37.00
37.00
37.00
37.00
37.00

2018

Balance Carried down

37.00

37.00

25.00

25.00

12.00

2019

Balance Carried down

12.00

12.00

12.00

 PROJECTED PROFITABILITY STATEMENT

PARTICULARS
INCOME
Sales
TOTAL
EXPENDITURE
Plantation W/off
Power & Fuel Expenss
Water & Irrigation Exp.
Salary & Wages
Insurance of Crop
Repair & Maintainance
Admin. & Selling Exp.
Intt. On Term Loan
Depreciation
Intt in Cash Credit
Cost of Project (B)
GROSS PROFIT [A-B]
NET PROFIT BEFORE TAX
LESS : TAXES
NET PROFIT AFTER TAX
Add Depreciation
CASH ACCURALS (A)
Add Interest
Total Fund
REPAYMENT
Instalment of Loan
Interest On Loan
Total Payment Obligation (B)
D.S.C.R.

2013

2014

2015

2016

2017

2018

2019

36.72
36.72

73.44
73.44

73.44
73.44

73.44
73.44

73.44
73.44

73.44
73.44

73.44
73.44

4.12
4.04
1.84
4.03
0.05
3.67
10.51
7.36
0.60
36.22
0.50
0.50
0.50
7.36
7.86
10.51
18.37

8.24
8.09
3.67
8.05
0.05
1.20
7.34
12.30
13.70
1.20
63.85
9.59
9.59
9.59
21.94
31.54
12.30
43.83

8.24
8.49
3.67
8.45
0.05
1.26
7.34
6.24
11.80
1.20
56.75
16.69
16.69
16.69
20.04
36.73
6.24
42.97

8.24
8.92
3.67
8.88
0.05
1.32
7.34
4.99
10.17
1.20
54.79
18.65
18.65

8.24
9.36
3.67
9.32
0.05
1.39
7.34
3.74
8.77
1.20
53.09
20.35
20.35

8.24
9.83
3.67
9.79
0.05
1.46
7.34
2.50
7.57
1.20
51.65
21.79
21.79

8.24
10.32
3.67
10.28
0.05
1.53
7.34
1.25
7.57
1.20
51.45
21.99
21.99

18.65
18.41
37.06
4.99
42.06

20.35
17.01
37.36
3.74
41.10

21.79
15.81
37.60
2.50
40.10

21.99
15.81
37.79
1.25
39.04

2.40
10.51

9.60
12.30

9.60
6.24

9.60
4.99

9.60
3.74

9.60
2.50

9.60
1.25

12.91
1.42

21.90
2.00

15.84
2.71

14.59
2.88
2.72

13.34
3.08

12.10
3.31

10.85
3.60

 Projected Balance Sheet

PARTICULARS

2013

2014

2015

2016

2017

2018

2019

25.40
8.59
24.00
48.00
36.47
0.53
10.00
152.99

25.40
22.88
24.00
38.40
36.47
0.58
10.00
157.73

25.40
38.53
24.00
28.80
36.47
0.64
10.00
163.84

25.40
55.28
24.00
19.20
36.47
0.70
10.00
171.05

25.40
72.58
36.47
24.00
9.60

145.87

25.40
0.50
24.00
57.60
36.47
0.48
10.00
154.45

0.77
10.00
178.82

25.40
89.16
36.47
24.00
0.85
10.00
185.88

145.87
145.87
-

145.87
7.36
138.50
5.00

145.87
29.30
116.56
10.00

170.58
49.35
121.23
12.00

170.58
67.76
102.82
13.20

170.58
84.76
85.81
14.52

170.58
100.57
70.00
15.97

195.58
116.38
79.20
17.57

0.00

10.95

26.43

24.50

47.82

70.72

92.84

89.12

145.87

154.45

152.99

157.73

163.84

171.05

178.82

185.88

Const.
Period
LIABILITIES
Share Capital
Net Profit
General Reserve
Unsecured Loan
Term Loan
Bridge Loan/Subsidy
Expenses Payable
Bank C/c Limit
TOTAL
ASSETS
FIXED ASSETS/PLANT
Less Depriciation
CURRENT ASSETS
Advances &
Receivables
Cash & Bank Balance
TOTAL

25.40
24.00
60.00
36.47
-

CASH FUND FLOW STATEMENT

PARTICULARS

Const.

2013

2014

2015

2016

2017

2018

2019

Share Capital
Fund From operators
Incr. in Term Loan from Bank
Incr. in Unsecured Loan
Depreciation
Incr. in Bridge Loan
Incr. in Expenses Payable
Bank Cash Credit

25.40
60.00
24.00
36.47
-

0.50
7.36
0.48
10.00

9.59
21.94
0.05

16.69
20.04
0.05
-

18.65
18.41
0.06
-

20.35
17.01
0.06
-

21.79
15.81
0.07

21.99
15.81
0.08
-

TOTAL

145.87

18.34

31.58

36.78

37.12

37.42

37.67

37.87

Incr. in Fixed Assets/Plant

Incr. in Subsidy
Incr. in Advances & Rece.
Rep. Loan of Bank Loan
Drawings

145.87
-

5.00
2.40
-

5.00
9.60
1.50
-

24.71
2.00
9.60
2.40
-

1.20
9.60
3.00
-

1.32
9.60
3.60
-

1.45
9.60
4.50
-

25.00
1.60
9.60
5.40
-

TOTAL

145.87

7.40

16.10

38.71

13.80

14.52

15.55

41.60

Opening Balance
Surplus
Closing Balance

0.00
0.00

0.00
10.94
10.95

10.95
15.48
26.43

26.43
(1.93)
24.50

24.50
23.32
47.82

47.82
22.90
70.72

70.72
22.12
92.84

92.84
(3.73)
89.12

SOURCES OF FUND

APPLICATION OF FUND

SWOT-Analysis.
Strength.

India has diverse climatic conditions suitable for various crops

There is favorable climate in various parts of India for cultivation of Gerbera.

Oppurtunities.

Scope in area expansion of flower cultivation.

Potential to increase cutivation and export of gerbera .

Vast domestic market which is yet untapped

48.66 lac ha of cultivable waste land

Weakness

Lesser - availability of quality seeds of vegetable and spices and quality planting
material of fruits.

Lack of water resources

Weak post harvest management facilities

Inadequate processing units.

Threats.

High cost of production and lack of remunerative prices to farmers

Price fluctuations and market gluts

Poor participation by private sector to invest in PH infrastructure

Over exploiting ground water & frequent droughts.

List of Plant & Machinery Suppliers.

Sheel Biotech Limited

Sheel House, RZ-2705/30, Main Jagdamba Road, Opposite Sant Ravidas Ashram,
Tughlakabad Extension
Delhi - 110019, India.

Jain Irrigation System.

7, Kumtha Street, Ballard Estate,

Mumbai - 400 001 (Maharashtra).

Harbhole Enterprise
Shop- 89, BMK, G.T. Road
Panipat - 132103, Haryana, India