Tsk&co

Project report on

cultivation of agro cash-crops

2011

chennai
index
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page no

executive summary.. project outlay..

3 4

strategy of productive cultivation 5 Details of Project implementation 6 Analysis of cultivation capacity.. Promoters details Success stories. Conclusion 7 9 10-16 17 Sales and profitability projections.. 8

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executive summary
tsk&co four year old trading company based at chennai is managed by TSK venkatasubbarrao (a mechanical engineer with management qualification(MBA)in finance & marketing with over25yrs of industrial experience).He has identified cultivationof agricultural cash crops like turmeric-sesame-organicrice-grapes-pomogranatesmango-red banana-teakwood-bamboo-selective vegetables etc are giving very high profitable returns to the owners if. controlled and required seed quality,nutritive fertilizers irrigation,crop protection, pest control etc are made available to crops through bio technology-enabled farming techniques,precisionfarming,land development,soil enrichment,rainwater harvesting ,drip&sprinkler irrigation.etc techniques . with a project cost of Rs55mn(equity:12.5mnpref.shares:15.0mn-debt:27.5mn) and a set of cash-crops cultivation plan in about 100 acres of land in karur district of tamilnadu over a period of 7years. Tsk venkatasubbarrao, is confident of managing this successfully and registering very attractive return of over30%for equity holders as dividend..and take this company to next level as listed company.considering listing gain of very modest 300%..in seventh year the total average return would be more than70% for equity investors in seven year period
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project outlay Source of funds Equity. 12.5mn Pref.shares 15.0mn Debt 27.50mn Application of funds Regdoff/admn bldg 7.50mn Prel/precultvn exp 5.00mn
Fin.chrg (during proj.prd 2yrs)

3.50mn
Land&land devpt (100acres)

30.00mn
Farm.eqpt/tools/misc

Total 55.00mn Note: gestation period of 2yrs planned towards land

purchase/devpt/cultivation.

2.50mn Contingency 2.50mn Working cap.margin 3.50mn Total 55.00mn

Preference shares are paid max12% fixed dividend&fully redeemed in7yrs Debt is repayable in 10yrs with max int.rate of12%pa Working capital of 10mn will be arranged with available margin by2ndyear.. Equity&pre.sh are issued in pair @1:2 ratio for the new investors Promoter brings in 5mn equity as cash cum assets
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Strategy of productive cultivation

Tsk&co..chennai based four year old trading company has identified certain cash crops if scientifically cultivated using proven technology available in india has given impressive yields of 75-100% more productivity/tonnage besides excellent quality than the conservative practices adapted by majority of farmers. On detailed analysis poor-seed quality-irregular/rain-dependent irrigation-crop damage due to deseases/improper pest control-lack of capital for timely action poor marketing &hence unattractive prices for their produceetc..are the main reasons for low yields Land development-enrichment of soil-rain water harvesting drip irrigation-precision farming-biotech enabled molecular level seedquality enhancing practices-organic fertilizers-organic-farming scientific crop rotation strategies for all season- cultivation (through out the year)-export oriented crop cultivation plan etc strategies will overcome all the above hurdles and lead to enhanced productivity. It is heartening to observe these strategies are already in place and a section of farmers successfully practising with the research /agri institutes support &guidance through out india including tamilnadu. We have included certain success stories/innovations at the end of this report.we need to simply follow them and succeed Agricultural professionals with relevant experience will be appointed at various levels in cultivation areas (covering sowing to harvesting stages) so that correct agricultural practices are in place for the targeted yield

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Details of Project implementation

@ equity &preference share investors to be formally tied up. @ long term Debt offers.. to be finalised& tied up from existing

@ an unlisted plc will be formed and share certificates will be issued with in Six weeks against receipt of investment funds to all the investors. Tsk&co will contribute their current office cum residence building in chennai as part of their share capital for the new company Which will become the regd office of the new agro company with Certain additional civil work @Land identification and purchase will be commenced simultaneously in karurDistrict area suitable for cultivating the proposed cash crops @seasoned agro consultants/professionals will be appointed for land selection-development etc activities.with the cooperation of friends and relatives the topManagement wants to complete this 100acre purchase activity with minimum delayat reasonable price (karur district area being the native district of tsk venkatasubbarrao) @a planning dept will cultivation analysis in so that sales targets team in the beginning go in to complete crop selection Consultation with top management are well conceived by Cultivation stage it self

@planning export-and best local marketing sources will be identified by forming separate marketing divn.this division will bridge market demand and cultivation Plan for better price for the produce @with in permitted gestation period land devpt cultivation trials will be completed.Additional man power will be
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recruited as cultivation activity covers total100 acres in stages.. @TNAUCand other knowledge centres will be tied up for marketing & technical guidances @working capital funding to be tied up at the commencement of regular cultivation after successful trials and tests It is estimated about two years time will be required for bringing about 60% Of 100acres of land under regular cultivation process

Analysis of cultivation capacity ( salesvariable cost)

We have analysed annual yields/sales of various crops including inter crops..the following pattern emerged Pomegranatesyield=15-10ton/peracre Sales=Rs15.5-10.0lakhs ; operating exp=2.0lakhs

Turmeric..sales/acre=Rs6.0lakhs Grapes(seedless)=Rs5.6lakhs/acre Tomato=Rs4.0lakhs/acre sales(half yr) Organic rice(kichili samba) =3.7t/acre..sales=1.1lakh/half year Wehavefound Rs4.0lakhs/acre /perannum is the min.average sale we can expect (from the crops we have
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planned) and the same is taken for sales&profitability analysis Similarly the variable cost /operating cost varied from 10% to25% of sales and we have taken20% as average variable cost(for the crops in terms of sales) for analysis The base rateRs4.0lakhs is adjusted for inflation annually in the analysis

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Sales& profitability projections

details capacityutilis ation Acres under cultvn
Sales(base4lac/p a/pA)

yr-1 Yr-2 --25.0 % --25.0 nil nil 15. 0 18. 0 ----

Yr-3 60.0 % 60.0 264. 0 53.0 36.0 57.0 118. 0

40.0

Yr-4 Yr-5 75% 80.0 % 75.0 80.0 330. 400. 0 0 66.0 80.0 40.0 44.0 52.0 46.0 172. 230. 0 0
55.0 75.0

Yr-6 90.0 % 90.0 450. 0 90.0 48.0 39.0 273. 0

75.0

Yr-7 90.0 % 90.0 495. 0 99.0 52.0 20.0 324. 0

75.0

total -90.0 2039.0 408.0 259.0 274.0 1125.0

320.0 (170.0+1 50.0) 275.0 (39.3%pa )

Variable cost(@20%of sales)

100. 0 20.0 24.0 42.0 08.0

---

o/H&otherFC Fin.charges PBDT

Allocation forDebt repay/pref.sh.re dmptn Allocation fordividend Payment for equity holders

--

---

40.0

55.0

60.0

60.0

60.0

Note :

fig.are in lakhs

: preference shares will be redeemed with in seven years as shown above : : good premium for the listing
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Equity holders enjoy average 39.3% dividend as shown Retained earnings at the end of 7thyear will facilitate in 8thyr

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Promoters details Name Year established Current nature of activities equity trading Legal status Details partners : : partnership firm
1)TSK

: :

Tsk&co 2007

: engg consultancy-

Venkatasubbarrao,BE,MBA(mobile:9884240600)

: Address(office cum Resi)

street,venkateswara nagar

2)VS padmavvathi,Mcom.,MA.B.Ed : plotNo21,second cross

Thirumullaivoyal,CHENNA I-600062

Telephone Email :

: 044-26376632 tsk500@gmail.com

Pancard-regtrn certificate-partnership deed IT returns-balance sheets are available for the company

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Succes s stories.

case studies

inno vations.

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1. Eco-friendly technologies for rice cultivation A sound package of eco-friendly technologies to grow rice is being successfully adopted by a few progressive farmers in Puliangudi village in Tirunelveli district of Tamil Nadu. "The technologies work well with indigenous rice varieties such as Kitchili Samba. The cost of cultivation is substantially reduced and the organic rice fetches a premium price in the market," says Mr. P. Gomathinayagam, a pioneer in organic farming in Puliangudi. "I grew a medium-duration (140 days) Kitchili Samba rice in about 1.6 hectares. The seeds were treated withPanchakavya, and the nursery was treated with plenty of tank silt and a host of organic amendments. Liberal quantities of tank silt were applied and green leaf manure was incorporated a few days ahead of the final ploughing. Biogas slurry was applied through irrigation when the seedlings were just establishing in the main field," he explained. One round of spray with 3 per cent solution of Panchakavya was given 20 days after transplanting. On the 30th day, a combination of coconut milk and butter milk, mixed in equal volume, in ten times their volume of water was sprayed on the crop to promote active plant growth and tillering. On the 40th day, another round of spray with Panchakavya (3 per cent solution in high volume spray) was given. A bio-insect repellent was sprayed on the 45th day of transplantation. The crop was regularly irrigated, and a grain yield of about 6 tonnes was expected from the 1.6 hectare plot. He also was assured of high quality straw for his cattle. The cost of cultivation worked out to Rs. 14,000 for 1.6 hectares. "I sell the output as organic rice at a rate of Rs. 30 per kg, and it makes organic rice cultivation more rewarding economically as well environmentally," pointed out Mr. Gomathinayagam. He is championing the cause of organic farming in the southern districts of Tamil Nadu. Several farmers are following his advice. "I adopted the organic rice farming technologies and harvested about 9.25 tonnes of paddy a hectare from the bold grained Trichi-1 variety. I dumped liberal quantities of daincha in the field and allowed it to decompose well in the field ahead of planting. There was no need for any plant protection also. The cost of cultivation worked out to Rs. 12,500 per hectare. I also harvested plenty of healthy straw for our animals," said Mr. V. Antonysamy, a progressive farmer of Puliangudi village.

Marketing: The farmers in Tamilnadu never had to search markets for their produce. Kerela is their biggest market. More than 50% of their produce are sent to Kochi market. The best quality goes to safal market in Bangalore where it fetches more prices. The remaining finds place in Tamilnadu markets. Marketing is by collective bargaining by the associations. .

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3. Ginger garlic extract: A Bio-pesticide for organic cultivation Organic practices avoid investment on costly chemicals Ms. Rajareega at her farm in Sivaganga district, Tamil Nadu seen manufacturing the botanical pesticides. There is a growing body of evidence to suggest that in the past 4-5 decades there has been an excessive dumping of chemical toxins on the soil. As a result the soil has become barren and ground water toxic, in many places. Contrast this with organic inputs that are safe, non toxic, and cost much less. For example, if using chemical pesticides and fertilizers for growing a crop in a hectare works out to about Rs.6,0007,000 the cost of growing the same crop using organic inputs may come to only about Rs.500 - Rs. 1,000, according to Ms. Rajareega of Raasi organic farms at Muthupatti village in Sivaganga district, Tamil Nadu. 4. Organic farming in banana a profitable venture Organic farming is the in-thing now in Thanjavur district- the rice bowl of Tamil Nadu. Having used chemical fertilisers for some years, farmers are now reverting to organic farming. Nearly one hundred farmers of Thanjavur district were given a first hand idea of how successful is organic farming by the Central Bank of India recently. They were taken to TARI high-tech horticulture farm at Marunkulam, where banana, maize and paddy were raised using organic farming. According to Kulandaisamy, a progressive farmer and owner of TARI high-tech horticulture farm, organic farming helps to increase the yield and nutritive value. In his farm at Marunkulam he has raised banana crop using organic fertilisers. He found that the yield and quality of the crop was good. He has raised Rasthali and robust variety of bananas on 1.5 acres and three acres respectively in his farm adopting organic farming methods. With respect to Rasthali, a bunch has five to six hands (hands means seeppu in Tamil), instead of three to four hands, which are normally seen in ordinary cultivation. The bunch has adequate space between hands and hence the fruit is big, says Mr. Kulandaisamy pointing to the big bunch of bananas in his farm. A bunch weighs 20 kgs and fetches Rs. 200.In the case of Robust variety (green banana) he has resorted to a high density cultivation with 1600 plants in an acre. In the case of Rasthali he has gone for 1000 plants in an acre. Robust variety of banana has 12 to 15 hands in a bunch and the bunch weighs 30 to 35 kgs. Fertiliser used by Kulandaisamy was composed organic matters, neem, pancha kavya prepared using cow's urine and cow dung, etc. As a farmer who is practising integrated farming, he has a dairy farm from where he produces panchakavya and uses the cowdung generated in the dairy for organic farming. What about marketing of bananas produced under organic farming? They fetch a premium price and already a shop in Chennai selling organic produce has booked for bananas. He is also selling the bananas to Tiruchi market. @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ 5. Organic practices for increasing mango yield

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Mango trees respond well to organic manure applications. Organic manures such as vermicompost, panchagavyaand vermiwash are used for promoting healthy tree growth and fruit formation. Essential nutrients From the initial planting stages to caring of full-grown trees, Panchagavya and vermicompost can be effectively used to supply essential nutrients to the trees and prevent pest infestations, according to Dr. S. Sundaravadivel, Vermitechnologist and Environmentalist based in Chennai. Vermicompost is prepared by using earthworms. Vermiwash is the liquid collected after the passage of water through a column of activated earthworms. It is very useful as an organic spray for all crops. Pest repellent Panchagavya is an organic growth promoter, which is prepared by mixing cow dung, cow urine, cow's milk, curd and ghee in suitable proportions, and is sprayed on the plants. It contains several macro, micronutrients, beneficial bacteria and fungi, which aid in growth promotion and act as effective pest repellents. It can be prepared by thoroughly mixing five kilos of fresh cow dung and one litre of cow's ghee in a plastic or cement tank or earthen pot. The mixture is stirred daily for three to four days."About three litres of cow's milk, two litres of cow's curd, three litres of sugarcane juice, three litres of tender coconut water and 10 to12 bananas are mixed well and added to the mixture. The entire concoction is allowed to ferment for fifteen days," said Dr. S. Sundaravadivel. The container should be covered with a net (or) cotton cloth to allow aeration of the fermenting unit, according to him. The concoction is stirred two or three times a day for about fifteen days and then used. For mango trees of about 6-7 years age, vermicompost may be applied at the rate of 10 kilograms per tree and one litre of panchagavya diluted in 30 litres of water may be sprayed over the foliage (crown) and at the base of the tree. Spraying Panchagavya over the crown and at the base of the tree must be done four to five times, according to Dr. Sundaravadivel. The first spraying must be done before the flowering season (January-March) to increase flower formation. A second spraying must be done after 15-20 days. The process must be repeated till the flowers turn into small sized buds. Once the buds start forming then the application can be done once a month, according to him. Use of Panchagavya and vermicompost has been found to increase the size, number and enhance the colour of the fruits. Recommended practice The recommended practice for one hectare of mango trees is about 25 litres of panchagavya (mixed in 750-800 litres of water) and four to five tonnes of vermicompost. Spraying panchagavya has been found effective in the control of fruit fly menace, a common infestation in all fruit bearing trees, according to Dr. Sundaravadivel. According to him, trees treated with organic manures bore large sized leaves and formed a dense canopy with profuse rooting systems. The taste and shelf life of the fruits were also found to be more satisfactory. Nitrogen-fixing bacteria "The interaction of the root hairs of these trees with the organic manures also increased the activity of the nitrogen-fixing bacteria in the soil.

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"The organic manures also act as a carrier medium for the development of several beneficial micro organisms such as azospirillum, azotobacter, rhizobium and phosphobacteria," he said. Dr. S. Sundaravadivel can be reached by mobile at 98843-90104 ,and email: sundaravadivel66@hotmail.com. @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@

Description of innovation
Mr. H.B. Gajare started pomegranate farming from the year 2001 in 2.80 ha of land, which is shallow rainfed land. Previously he was cultivating Cereals and Vegetables but not getting more income from these crops, then he tried fruit cultivation i.e. Plantation of Pomegranate. Due to shortage of water for irrigation, he changed the cropping pattern and now only Phule Bhagwa Pomegranate for export purpose is grown by him. Every year there is increasing trend of income and specially during January, 2009, 60 tonns of Pomegranate @ Rs. 62 per kg. has been sold. Out of total production 70% produce has been exported to the European country. The total expenditure for 1.2 ha was Rs 300000 while the total income of Rs 3720000 has been obtained by him. Mr. Gajre developed good agricultural practices for pomegranate like refilling of Borewell with rainwater harvesting every year, use of Azotobactor, Rhizobium and PSB. He used Dashparni ark to control insects and pests in order to have minimum level of pesticidal residues. To increase fruit weight, improve colour and quality of fruits the Biological products i.e. Madhulexin @ 7 ml. / litre of water is sprayed at 21 days before harvesting. The special pruning practices, integrated nutrient management and integrated pest & disease management practices are followed. Presently these practices are followed on 700 to 750 acre by the farmers of Aran cluster.

Practical utility of innovation

He is giving knowledge about Pomegranate cultivation and group dynamics to other farmers through Shri Babanrao Shinde Krishi Phalotpadak Sahakari sanstha, Aran which was established during 2006. Through this co-operative sanstha they purchased fertilizers, pesticides and marketing activities were implemented. During 2001, the area under pomegranate was only 1.7 ha while in 2010 it is about 280 to 300 ha which gave 150 to 175 % more yield and Benefit Cost Ratio is 11.4. He formed pomegranate growersgroup with 40-50 members and marketing is being done

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More yield: The farmer Mr. C. Boopathy of Dharmaputi district in Tamil Nadu has harvested about 45 tonnes of fruit from an hectare. Muskmelon is a fruit crop cultivated widely by farmers in our country particularly during the summer season. The fruit is used for making sherbets and desserts which have a cooling effect on the body. Though it is mainly a summer crop it is now being cultivated throughout the year in Tamil Nadu, thanks to the Precision Farming technology from the Tamil Nadu Agricultural University (TNAU), Coimbatore, Tamil Nadu. Mr. C. Boopathy, a beneficiary farmer of the precision farming technology (PFT) in Morappur village of Dharmapuri district in Tamil Nadu has grown musk melon in his one hectare farm. Net profit I had spent about Rs. 90,000 as cultivation cost and was able to get a gross income of Rs. 3,60,000. Deducting the expense I have earned a net profit of Rs. 2,70,000 solely from musk melon, he says. The seedlings are raised in protrays which are filled with cocopeat and grown in a shade net nursery under protected condition. They are ready for transplanting in the main field on 12th day of sowing, according to him. Healthy plants The root growth is excellent when the seedlings are grown in protrays and the seedlings are resistant to pests and diseases. All the plants are uniform, healthy and the portrays can be easily taken to the main field for transplanting, according to Dr. E. Vadivel, Director, Extension Education, TNAU. About 20,000 seedlings are required for planting in one hectare. The field was readied using a chisel plough and disc (once) and then by cultivators, four times (with the help of a tractor). Then the seedlings were planted on raised beds of 1x4 feet (one foot height and four feet wide beds). About 25 tonnes of farm yard manure (FYM), 2 kg of biofertilizers such as Azospirillum or Phosphobacteria and 470 kg of super phosphate were applied (for one hectare) as a basal application before the last ploughing. Water soluble fertilizers were applied through fertigation pipes (similar to drip irrigation pipes) which avoid water wastage. The fertilizer application is done based on the time and the stage of the crop. Unlike crops grown under the conventional system, precision crops come to harvest at an earlier stage. For example, this melon was harvested on the 65th day after planting. Uniform fruit growth Under normal practices harvesting can be done after the 75th day after planting. In addition there are more number of flowers in the plant and the fruit growth is also uniform, according to Dr. R.I. Muthuvel, Assistant Professor, Horticulture. Also, the fruits can be harvested in a single harvest unlike conventional system where 3-4 harvests are required. Major pests affecting the crop are beetles, white flies and fruit borers. Beetles and white flies can be controlled by spraying 2gms of Carboryl or 0.5 gms of Acetamopride diluted in one litre of water. Spraying 2 ml of Trizophos or 2gm of Thiodicarb or Methomil in one litre of water is found effective for the control of fruit borers. The fruit weight is also more compared fetches a good price in the market due to higher sweet content and shelf life, according to Dr. Muthuvel. I was able to harvest two fruits from a single vine he said. Each fruit weighed 1.25 - 1.5 kg. About 45 tonnes of fruit was harvested from a hectare and sold at Rs. 5 to 12 a kg, said Mr. Boopathy. 20 | P a g e

Contact details : Dr. I. Muthuvel, Assistant Professor, Horticulture, TNAU, Coimbatore: 641 003, Tamil Nadu, mobile: 94437-15948 and Mr. C. Boopathy, Morappur village, Dharmapuri district, Tamil Nadu.

Higher yield in Brinjal Our granny says more brinjal, tomato, Tamilnadu Agricultural University gives the statistics.

S.NO

CROP

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Tomato Chilli Brinjal Ladies finger Tapioca Turmeric Sugarcane Cotton Watermelon AshGourd Onion Banana Cabbage Cauliflower Pumpkin Bittergourd Ribbedgourd Bottlegourd Cucumber Beans Beetroot Rose Marigold

YIELD National average 17.35 12.02 10.46 6.28 25.52 4.95 80-100 15-20(Quintal) 12.71 21.95 11.32 28.58 14.38 14.22 11.91 6.23 15.85 12.21 6.48 5.8 16.75 10lk stems 10

TONNES/HA Precision yield 150 35 156 16 52 9 250 30(Quintal) 60 40 21 110 120 33 50 15 34 66 20 12 35 25lk stems 25

INCREASE %

764.55 191.18 1334.03 154.78 103.76 81.81 177.77 111.43 372.06 82.23 85.51 284.88 734.49 132.06 319.81 140.77 114.51 440.54 208.64 106.89 108.95 150.00 150.00

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24

Chrysanthemum

8-15

25

117.39

Conclusion It is clear from the facts and analysis furnished, cultivation of cash-crops if done with good agricultural practices Involving land development-soil enrichmentirrigation management-precision farming from sowing to harvesting-right marketing etc leads to impressive profits. The project is economically viable technically feasible&

The management team with full involvement and dedication is confident of making the analysis a reality and will reward the investors impressively With in a period of seven years
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