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Business plan

Automated Irrigation Control


System- Irri Robo
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Business Plan

Group 1

What's the need for?

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Business Plan

Summary
Need for innovation in agricultural sector for
irrigation system.
Business plan is focused on automated micro
irrigation project, according to the survey by IARI
farm sector alone accounts 83% of water use.
Initial investment for development of product.
Strong technical and marketing team.
Annual yields of water in Karnataka is around 3475
TMC, from which 1695 TMC is used for irrigation

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Business Plan

Objective
Capture majority of irrigation business in
Karnataka.
Offer our customers a superior service, at low
price.

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Business Plan

Mission
To generate growth and profit
for our company through
integration of people and
technologyexcellence,
focusing in the areas
ofquality,technical content
and innovation

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Business Plan

Vision
Innovation which can lead to
new green revolution.
Continuous growth through
sustained innovation and
total customer satisfaction

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Business Plan

Solution

Irrigation control system


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Business Plan

SWOT analysis
Strength- Superior technology, cost effective pricing.

Weakness- Wear and tear of the automated system.

Opportunities Potential market with 18% growth


rate every year.

Threats- Change in government policies and


regulations.
New entrants to the market pose a threat

Market Size

Agricultural GDP growth rate likely to accelerate to 2.5%


$4.8Billion micro irrigation systems market set to rise by
2018- Researchmoz.
In India only 5 million hectares is under proper micro
irrigation, out of 69 million hectares.
Micro irrigation system market growing at a CAGR of
18% from 2012 to 2018.
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Business Plan

Target Market
As per IARI, kharif, rabi, zaid crops alone accounts
for 75 per cent of the water used in agriculture in
India.
Growing these crops through the conventional
watering system requires about a million gallons
for an acre.
By using automated irrigation system control, the
water used can be reduced by half.
Initially covering around 160 acre of land, around
50 farmers, with the help of Karnataka neeravari
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Business Plan
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ltd.

Marketing Strategy
Conducting workshops for farmers, on how to use
automated irrigation control system.
Advertising and promotions through DD Kisan,
approximate cost 60,000 INR prime time 9.00pm11.00pm

Incentive for farmers who recommend our


solution to others.
Radio advertisement during Maan Ki Baat
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Business Plan

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Human resource strategy


Operations Manager

Marketing Manager

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Sales and Distribution

MOU with government of Karnataka, for providing


cost effective solution for farmers at minimal
price, through national portal of India.
Incentive based on quarterly performance.
Forecasting based on region, which would be
further broken down into towns and villages.
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Business Plan

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Financial model

Forecasting startup cost.


Budgeting the financial expenditure for a year.
Generating funds through alternate resource.
Mentoring.
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Financial Strategy
Cost(lakh)

Startup cost; 5%
operation cost; 33%
production cost; 63%

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Business Plan

Total start-up
budget
20,00,000
INR.
Production
cost of device
12,50,000INR
for 2500 units
Operational
cost for 1
year
6,50,000INR.
Startup cost
1,00,000 INR

15

Financial Expenditure
Initial cost of product for 2500 units, is 6,25,000
INR.
Expenditure
Number of staff
members
5. 2
Year
1
Year
Year 3
R&D Engineer

3,00,000

3,60,000

4,32,000

Marketing and
Sales

2,50,000

3,00,000

3,60,000

Operations
Manager

2,50,000

3,00,000

3,60,000

Blue collar
employees

1,50,000

1,80,000

2,16,000

Ware House/Rent

3,25,000

3,25,000

3,25,000

Production cost

6,25,000

7,50,000

9,00,000

Start-up cost

1,00,000

NA

NA

Total cost

20,00,000

22,15,000

25,93,000

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Business Plan

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Implementation Strategy
Locatio Govern Numbe
n
ance
r of
househ
old

Percen Numbe Averag


t of
r of
e farm
farm
farms
size
househ
old

Maxim
um
numbe
r of
kits

Belman

Village

150

70%

105

1.5

1575

Udupi

District

15000

70%

10500

1.5

157500

Karnata
ka

State

500000
0

70%

350000
0

1.5

525000
00

Pricing strategy- The automatic irrigation control


system will be priced around 1400 INR. Which is
around 3.80 INR per day, compared to farmers
income of 90 INR per day. Farmers currently spend
120 INR for water from tube well.
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Breakeven analysis
With the variable cost, the product will be priced
around 1000 INR.
Fixed + variable cost will be approximately
25,00,000 INR.
We estimate that we make a profit of 10,00,000
per year, thus our selling pricing per unit will be
1,400 INR.
To recover our break even cost we must produce
5,000 units.
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Business model

Volume based pricing.


Customized solution with higher pricing
model.
Consulting service for university project.
Other revenue source- workshops.
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Competition

Netafim and Jain irrigation both account


50% of market size .
Rain bird.
Valmont industries.
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Future scope

The aim of Automated irrigation control system is


efficient use of scare water resource. India is a
potential hub, and end goal is profit making.
The Make in India and Startup India initiative
which targets manufacturing hub in India, which
in-turn propel more skilled manpower.
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