Text Report Vishvanath Project

M/s VISHVAJYOTI SEEDS.
VISHVAJYOTI
SEEDS
Plot No. : 1800, Village: hussainabad, tehsil: bansdih, distt: baliya (UP)
PROJECT REPORT
Under
Seed Infrastructure Scheme

Of
NATIONAL HORTICULTURE MISSION
OF
GOVT. OF INDIA
Prepared by: Harish Dayani & Co. (Chartered Accountants), 211, Sunrise Tower, 579, M G Road, INDORE
(MP)
Contact : 09179052380

REFERENCE TO PROJECT:
S.NO.
DESCRIPTION
CHAPTER NO.
1.
PROJECT AT A GLANCE
2.
INTRODUCTION
3.
OBJECTIVES
4.
MARKET POTENTIAL
FOUR
5.
LOSSES DUE TO INEFFICIENT POST

HARVEST MANAGEMENT
FIVE
ONE
TWO
THREE
6.
INTRODUCTION OF PROMOTER
SIX
7.
COST OF PROJECT & MEANS OF FINANCE
SEVEN
8.
DETAIL OF COST OF PROJECT
EIGHT
9.
CAPACITY UTILISATION
NINE
10.
MANPOWER AND MANAGEMENT
TEN
11.
ASSUMPTION
ELEVEN
12.
IMPLEMENTATION SCHEDULE
13.
CONCLUSION
TWELVE
THIRTEEN
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ANNEXURE FINANCIAL:
S.NO.
DESCRIPTION
CHAPTER NO.
1.
COST OF PROJECT & MEANS OF FINANCE
F-ONE
2.
F-TWO
3.
DETAIL OF EXPENDITURE
F-THREE
4.
F-FOUR
5.
COST OF PURCHASE OF RAW MATERIAL
F-FIVE
6.
QUANTITATIVE PRODUCTION
F-SIX
6A.
GROSS SALES RELISATION
F-SIX A
7.
PROJECTED BALANCE SHEET
8.
PROJECTED PROFITABILITY
9.
CASH FLOW STATEMENT
10.
REPAYMENT SHEDULE
F-TEN
11.
WORKING CAPITAL REQUIREMENT
F-ELEVEN
12.
CALCULATION OF D.S. C.R.
F-TWELVE
13.
DEPRECIATION CHART
F-THIRTEEN
14.
RATIO ANALYSIS
F- FORTEEN
15.
CALCULATION OF SUBSIDY
F-FIFTEEN
16.
BREAK EVEN POINT
F-SIXTEEN.
17.
SENSITIVITY ANALYSIS
F-SEVENTEEN
F-SEVEN
F-EIGHT
F-NINE
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CHAPTER ONE
PROJECT AT A GLANCE
S.No,
PARTICULARS
DETAILS of the Project
1.
Name of the Project
VISHVAJYOTI SEEDS
2.
Promoting Group
VISHVAJYOTI GROUP
3.
Constitution
PARTNERSHIP
4.
Names of the Partner
1. Santosh Kumar S/o Sh. Vishvanath

2. Smt. Rajkumari Devi W/o Veerendra Kumar
5.
Project Land
6.
Cost of the Project

(Capital Cost)
The partners have a plot of land on lease measuring 9180 sq

meters (0.918 Hectare) on a 60 year registered lease with a rent
of Rs. 52500/- per annum.
Rs. Lacs
Cost of Land
N.A.
Cost of Construction of Storage Area 105.50
57.84
Cost of Construction of Seed

Processing Area, Office
and other Infrastructure
(Technical Civil Construction)
Plant and Machineries
Furniture & Fixtures
Computer & Printer
TOTAL:
7.
Means of Finance (Rs. In Lacs)
Term Loan Including Subsidy

Amount (Close Ended)
Own Capital inclusive of
Loans from friends and Relatives.
TOTAL:
8.
Objectives
51.70
1.00
0.40
216.44
150.00
66.44
216.44
The Company proposes to Set up of an industrial unit for

Grading & Sorting of various Horticulture Crop Seeds. The unit
shall be equipped with the complete Modern machinery to
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increase the accuracy and efficiency in seeds grading.
As the region is most productive for onion, potato, vegetables
and horticulture product but due to non availability of post
harvest management the post harvest losses is very high and
availability of local quality seeds is very less, so promoter is
aimed to develop a unit with advances and modernized plan &
machinery to facilitate the farmer of the region for availability of
low cost best quality seeds with post harvest management
facility.
40% in 1st Year, 45% in 2nd Year,
50% from 3rd Year onwards.
9.
Projected Capacity Utilization
10.
Bank and Branch sanctioning the ..; Branch has agreed to

term loan.
sanction a term loan of Rs.150.00 lacs inclusive of eligible
subsidy amount vide their sanction letter dated ___________.
11.
Term Loan Tenure
The term loan shall be provided to the unit for a period of 7

years with first 2 quarter of moratorium.
12.
Break Even Point
The average break even point for first three year is: 54.40% and
Cash BEP is 25.60% which is very reasonable and justified.
13.
D.S.C.R.
2.04(Average)
14.
Project Activities
The Proposed project is agro based industry being set up for

Grading and Cleaning of variety of Horticulture Crop Seed
deploying the Modernized Machinery with the objective of
achieving accuracy in grading and efficiency in the production.
The proposed project shall install Modernized Seed Processing
Plant which shall be acquired by reputed supplier. Thus the
project shall gain the capability of processing all types of
Horticulture crop seeds to be more specific seeds like Onion,
Poteto, and Vegetable Seeds.
All these seeds availability in bulk is assured because the
cultivators prefer to grow these crops in a big way. The local
traders also have interest in these crops because of large scale
availability and they find it easy to trade.
15.
Strength of the Project Concept
The Farmers of the region who are indulging in growing above

crops their next step after harvesting of the crop is to rush yield
for further processing involving cleaning, Grading and Sorting of
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the crop for getting quality graded seeds which fetch to them
much higher value by incurring costs to clean, grading and
sorting. The promoters are enjoying good reputation and relation
with the local farmers which shall be helpful to the unit in
fetching immediate and regular business.
Moreover the present installed capacity of such units is much
below the actual demand. By installing the cleaning and grading
facilities the farmers shall get their final seeds very fast and shall
be getting quick return of money on the investments blocked for
which most of them have to pay interest because the farmers
depend on the borrowed money till the crop does not mature and
is saleable.
The unit shall besides cleaning grading and Sorting can provide
the farmers safe storage till they are in a position to negotiate the
sales deal at the right price they expect.
Brief
of
Description
of Location Specification:
Infrastructure/Facility proposed to
be Created under the Project:
The choice of location for the Proposed project has been made at
Village: Hussianabad, Tehsil, Bansdeeh, District: Balia, which is
most productive area of potato, onion in the country.
Baliya district of Uttar Pradesh is very popular for production of
potato and onion and other horticulture produce. The location is
very well connect to roads and easy approachable to farmer of
the region
Projects Civil Construction Work:
The proposed project has provision for building fully equipped
Machine room with its separate Processing Area, Drying Area
and Storage Area. There shall be a spacious Office, Farmers
Rest House along with other necessary infrastructure.
The Plant & Machinery Specification:
The proposed project shall have installed the following
Machinery required for processing of Raw Seeds to quality
Finished Seeds:
Cleaning & Grading Machines
Gravity Separator
Other Accessories
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CHAPTER - TWO
INTRODUCTION
Seed has been an important agricultural commodity since the first crop plant was domesticated by
pre-historic man. For thousand of years, man cleaned seed of his food crops by winnowing. This is
still an important process, but it is no longer adequate to supply the kind of seed needed by farmer.
Seed processing is a vital part of the seed production needed to move the improved genetic
materials of the plant breeder into commercial channels for feeding the rapidly expanding world
population. The farmer must get the quality seed that is free from all undesired materials because
farmers entire crop depends on it.
Seed can seldom be planted in the condition in which it comes from the growers. In fact, many seed
lots contain weed or crop seed or inert material that make them unfit for sale without processing.
Crop seed also frequently have stems, awns, clusters or other structures, which prevent from
flowing through the drill freely.
Seed processing is that segment of the seed industry responsible for upgrading seed (Fig. 1),
improving planting condition of seed, and applying chemical protectants to the seed.
Advantages of seed processing:
1. Make possible more uniform planting rates by proper sizing
2. Improve seed marketing by improving seed quality
3. Improve seed germination
4. Prevent spread of weed seed
5. Prevent crops from disease by applying chemical protectants
6. Reduces seed losses by drying
7. Facilitate uniform marketing by providing storage from harvest time until the seed is needed for
planting.
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An important factor to consider is the moisture content of the seed prior to processing. Seed with
moisture content above 15% are subject to excessive damage in the processing line. In this case
natural or artificial drying has to be involved.
Raw seed
Inert material
Common weed seed
Noxious weed seed
Other crop seed
Deteriorated seed
Other variety seed
Damaged seed
Off size seed
Cleaned, Graded, Treated, Packed,

Tested seed
Fig. 1. Undesirable materials removed during processing of

seed
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Physical characteristics used to separate seed include size, length, weight, shape, surface texture,
colour, affinity for liquids and electrical conductivity.
Seed processing can broadly be divided into various steps (Fig. 2). As the seed is received into the
processing plant, it goes either directly into the cleaning process or into storage to await processing.
Drying may be necessary. As processing begins, the first phase (conditioning and pre-cleaning)
consists of scalping, de-bearding, shelling or any other operation necessary to make the seed flow
easily. The second phase (cleaning and grading) includes the removal of inert materials, weed seed,
other crop seed, and broken seed that are larger or smaller than the crop seed and obtain the seed
mass in the uniform size range of perforations of top and bottom screen.
After the desired purity is obtained, seed enters the final processing phase of separation based on
specific characteristics like length, weight etc and treating and packaging. Processed seed is stored
for later sale.
Conditioning &
pre-cleaning
Receiving
Bulk storage
Separating and
upgrading
Cleaning
Treating and bagging
Storage
Fig. 2. Basic flow and essential steps in seed processing
After the desired purity is obtained, seed enters the final processing phase of separation
based on specific characteristics like length, weight etc and treating and packaging.
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Processed seed is stored for later sale.
The Background of Horticultural Crop Harvesting:
Harvesting
Straight combining when the crop is fully mature is the preferred harvest method for horticultural
crops of coriander, fenugreek etc. The crop can be swathed when the fruit turns tan to brown.
However, large and fluffy swaths can be very susceptible to wind damage. Swathing or combining
in damp weather or when dew is present will help to avoid shattering losses.
Combine when the moisture content is less than 15 per cent. A moisture content of 10 per cent is
considered dry, but many buyers prefer a moisture content of nine per cent. Cylinder or rotor speed
should be set to approximately 500 RPM under dry conditions. An initial concave setting of 12 mm
( in.) at the front, and six mm ( in.) at the back is suggested. Wind speed should be set high
enough to reduce dockage, and the return should be minimized as much as possible. Reduced
ground speed may be required. Coriander containing over five per cent split fruit is usually
discounted at time of purchase.
Storage
Some producers use a moisture meter to determine moisture levels in coriander samples. For 10 per
cent moisture on a 3.5" moisture meter, use the sunflower chart; a 150 g sample; and calibrate at
73.
The microwave oven technique can also be used to determine the moisture content of seed samples.
Weigh 100 g of seed and place in microwave for 30-second intervals. Weigh the seeds between
each interval. Repeat until the seed weight becomes constant after three intervals.
% Seed moisture content = 100 g - weight of seed after drying (g) x 100 / weight of seed after
drying (g)
Coriander seed must cure during storage. Natural air drying or aeration is beneficial for curing.
Coriander oil is very volatile and hot air drying should be avoided. Green material should be
cleaned from the sample as soon as possible. Avoid the concentration of green material such as
weed seeds in the bin. The higher density of the green material prevents even airflow during
aeration and increased spoilage can occur. The sample must be free of foreign material (<2%) at
the time of sale.
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PEEPING INTO THE ANCIENT SEEDS HISTORY TO PRESENT SCENARIO
Finding the Prehistoric Seed and Growing to a Flowering Plant:
There is lot of excitement and amusement surrounding the feat of Russian scientists related to
creation of a flowering plant from the prehistoric seed believed to be 30,000 years old which got
deposited in the Siberian permafrost having -7o C helped in its preservation for such a long period.
The related facts are published in the Proceedings of the National Academy of Sciences in the
United States. Prior to this there is on record evidence of 2000 years old seed found which could be
successfully produced into a plant having characteristics much different than the present day plant.
Historical Background of the Seeds:
The prehistoric man did not do any farming till the period of 10,000 BC or nearly 12,000 years ago.
This was a period affected by extreme climatic changes resulting in the territories of Europe, Africa
and Asia became very hot and dry and the populations moved to areas, where the water was still
available necessary for their living needs.
At that time the necessity to farming arose because of too much crowding because of massive
migration and the activity of hunting, food gathering and fishing. Hunting the earliest profession of
man did not provide food to sustain life of people.
The edible plants were located very far off and inaccessible. In the nearby areas there were only
inedible plants. At this juncture it occurred to them to plant their own seeds of wheat and eliminate
the growth of weeds for getting more food for the people.
This wise learning has undergone dramatic changes to produce increased food sufficient for the
ever growing population of mankind.
The Journey of Seed from Past to Present:
Dictated by the past extreme climatic warming there was large scale migration of the prehistoric
man who till now was a hunter and gatherer only under compulsion learned farming to meet the
increased demand of population migrated to find land having water reserves.
For thousands of years, man undertook manual cleaning of seed reused for sowing to get food
crops by the process of winnowing. This is still an important process, but it is no longer adequate to
supply the kind of seed needed by farmer. There has been great strides at the level of
mechanization of the entire process to achieve results much faster besides improving the quality of
seeds produced by their genetic engineering an advanced activity carried out at the Agricultural
Universities and their affiliated institutes carrying out the research and passing on the benefits to
the farmers through their interaction programs with the farmers holding demonstrations and
explaining in the language they understand at the regional level.
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The reach of the scientific research is fast trickling down and the farm visits programs has created
more nearness of the scientific progress in the seed development and production sector getting
adopted to reap the economic benefits besides and in the process building national health through
better nutrition value crops.
Seed processing is a vital part of the seed production needed to move the improved genetic
materials of the plant breeder into the commercial channels for feeding the rapidly expanding world
population. The farmer must get the quality seed that is free from all undesired materials because
farmers entire crop depends on it.
Seeds as it is can seldom be planted in the condition in which it comes from the growers. In fact,
many seed lots contain weed seeds or other crop seeds or inert material that make them unfit for
sale without processing. Crop seed also frequently have stems, awns, clusters or other structures,
which prevent from flowing through the drill freely.
Seed processing is that segment of the seed industry responsible for upgrading seed (Fig. 1),
improving planting condition of seed, and applying chemical agents aimed at protection of the
seeds.
Advantages of seed processing:
1. Enhance the possibility of more uniform planting rates by proper sizing techniques.
2. Improvements in seed marketing by assuring improvement of the seed quality through
standardization.
3. Improving the percentage of seeds succeeding in germination
4. Prevention of the spread of weed seed through the process of elimination by physical
inspecting the entire seed lot and hand picking and destroying the weed seeds.
5. Prevention of crops from disease by applying safe chemical pesticides enhancing the
disease protection at the seed processing level.
6. Reduction of the seed losses can be achieved through drying process preventing their
deterioration due to higher moisture content and long storage period.
7. Active participation in facilitating uniform marketing and fast distribution to the actual
users by creating conditions for safe storage beginning right from harvesting till the seed is
sown for getting the next crop.
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CHAPTER - THREE
OBJECTIVES
The Promoters have by their well defined objectives are according higher priority in the
progress of regional economics as well as giving uplift to the rural economy through
fast development of horticultural activities in the region. Seed quality is a vital input to
progress of the agriculture. There are highly focused activities undertaken which shall
be ensuring availability of quality seeds to farmers in order to achieve fast progress in
the horticultural development in the region.
In the present scenario related to seed production and grading there are inadequacies in
production and existing facilities are not in position to fulfill the entire demand of
quality seeds. The result is evidenced by the seeds provider agencies are unable to cater
to the demand of quality seeds. This is an identified as hindrance in relation to target
achievement set by the agencies responsible for the growth in the sector. The entire
quality seed production, cleaning and grading activities need to be upgraded to fulfill
the social obligations as well as benefiting the poor class farmers for their higher
participation.
In view of above objectives foreseen, the projects each processing stage has been
formulated giving proper weight-age so that the unit functions at full capacity most of
the time so that the task gets completed without wasting time in handling efficiently
peak levels crop harvested and arrival to the uni t for further processing.
The objective also takes into consideration the need to produce quality seed of
diverse range of horticultural crops through scientifically proven methods and
adoption of most appropriate processing techniques through establishment of
facilities of seed processing using the plant and equipments installed and offering
safe storage under all conditions.
The Post-harvest seed handling ensuring improved varieties is the essential
component of the acquired technology in order to provide quality seeds to the
users depending on market alone. If the seeds are not subjected to necessary
processing involving many steps and handling is deficient, all the past efforts in
production are liable to be lost. Therefore the seed processing and standardized
packaging and labeling is very important aspect in seed production.
The horticulture seeds reaching the farmers are often rejected due to poor
quality and disease infestation found. Therefore, seed production of horticulture
crops needs to be supported with infrastructure for scientific warehousing after
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completion of drying, grading and processing as the modern techniques envisage

from such units.
With the sacred objective of supporting of the seed production and processing
of horticulture seeds and increasing the acceptability criteria, the Promoter shall
be establishing the seed infrastructure for handling processing packaging, storage
etc. related to growing and developing seeds of Horticulture crops.
MAIN OBJECTIVES:
1. To provide holistic growth of horticulture sector through area based regionally
differentiated strategies, which include research, technology promotion, extension of the
benefits to the patrons, introducing post harvest management, Processing & Marketing, in
consonance with comparative advantage of each state/region and its diverse agro-climatic
features.
2. Enhance horticulture production by improving nutritional security and income support to
farm households.
3. Establish convergence and synergy among on-going and plan programmers, for horticulture
development.
4. To promote, develop and disseminate technologies for horticulture development, through
seamless blending of traditional wisdom and modern scientific knowledge.
5. To create employment generation opportunities for skilled and unskilled persons, especially
unemployed youth.
FEATURES :
Seed is available at the door steps of farms at an appropriate time.
Seed availability at affordable cost even lesser than market price.
Increased confidence among the farmers about the quality because of

known source of production.
Producer and consumer are mutually benefited.
Facilitates fast spread of new cultivars of different kinds.
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CHAPTER FOUR
MARKET POTENTIAL
The Favorable Scenario for Project:

The proposed project is being set up in the existing favorable scenario as can be easily observed
from the fact that: India is one of the largest producers of agriculture crops and this country is
known as Agriculture Country. Because the agricultural community lives in the villages working
hard to ensure that there is enough food for the people living in the cities.
The Indian Villages are still suffering the poverty because in a big way there is inadequacy of
infrastructure and processing facilities in the villages. The farmers after harvesting of the crops
have to move to the city for grading and processing to achieve value addition to their produce.
The real experience is that large percentage of vegetables and horticultural produce gets perished
before it reaches to consumers and even farmers do not get better prices of their crops. Facing the
problems the farmers in the past shirked to grow horticulture crop in a big way. It is so because the
Seed Sorting and Grading Units with storage facilities are very scarce and their demand is
increasing day by day in the region where the project is proposed to be set up.
The project after commencement of commercial production shall be providing increased capacity
availability and better services and support to farmers and traders. The promoters enjoy great
confidence of the local farmers for their fair and farmer friendly dealings.
NEED OF PROJECT:
Quite recently with the support of the Governments Horticulture promotion programs there are
some cleaning, grading and processing facilities have been set up inducing the farmers to divert
their attention to horticultural crops growing seeing better prospects, wherever such facilities are
made available by the private businesses already in the agricultural produce field.
These businessmen understand in a real way this segment and the people who are connected in
growing crops who can be better influenced to divert towards horticultural crops thus increasing
the horticultural produce yield and the earnings.
The region is already famous for the Horticulture Crops like Onion, Potato, Vegetables and other
spices being much more remunerative than the traditional crops, have registered a constant increase
in their production in the last few decades. It is estimated that on account of inadequate post harvest
infrastructure, substantial percentage gets wasted and farmers do not get fair price of their labour.
With the setting up of the proposed project at the site the farmers shall be benefited by the
additional new capacity being created offering cleaning, grading services focused on the specific
needs of horticultural crops growers of the region.
THE ILLS OF RURAL ECONOMY:
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Our farming community depends heavily on borrowed money for agricultural operations. The
borrowings are at an unreasonably high rate of interest, mostly from money lenders. As a result,
they are forced to sell their produce immediately after the harvest, although the price is very low.
Thus, farmers lose heavily on their investments. This vicious cycle recurs year after year making
the farmers poorer. Today, the Hadoti Region does not have appropriate infrastructure to provide
relief to these farmers. Storage facilities for agricultural produce are inadequate in rural areas. The
farmers, therefore, have to dispose of their produce at an un-remunerative price, immediately after
the harvest.
The region and its farmers and traders were in search of such platforms. This project
will stop their search.
Prepare Horticultural seed for a golden harvest:
Since humans first developed stable agriculture, seeds have become the world's most essential crop.
That's because seed is the bridge between one generation of plant and the next.
There isn't a single good reason for planting poor quality seed, and, thank goodness, this is one
thing you can control. The general rule is the larger the seed for any particular variety, the stronger
and more vigorous the seedlings are likely to be. Large seeds also produce plants with more tillers
than those grown from small seeds.
Why undertake grading of Horticultural seed?
As you might expect, a good heavyweight will beat a good lightweight any day. So the aim of seed
grading is to maintain this quality from one season to the next by removing all these destructive
elements:
Other crop seeds

Weed seeds (especially herbicide resistant weeds)
Straw, soil dust and other inert material
Immature, shriveled, damaged, cracked, undersized or oversized seeds
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Driving Economy to Benefit through Quality grading:
Seeds are living organisms and unless looked after will rapidly deteriorate. The value of high seed
germination is obvious.
However, the vigour of seedlings is just as important.
Vigour is a seed's ability to germinate, emerge and produce healthy, rapidly growing seedlings even
when planted in poor field conditions such as heavy crusting soils or when planted too deep.
A low vigour seed may germinate well in ideal conditions of temperature and soil moisture.
However, in less than perfect conditions it's another story. Poor emergence may limit yield. Vigour
is one of the most important characteristics of seed quality because of its vital effect on seedling
establishment.
This was clearly shown by trial work conducted by the Department of Agriculture in Western
Australia.
Seed quality improves emergence
Major findings were that small cereal seed will germinate just as well as large, plump seed, but
emergence is considerably less for pinched, small and broken grain.
Seed Grading to Improve the Competitiveness:
Larger seed not only has greater vigour but emerges faster. The speed of germination and
emergence is a powerful factor because it occurs early in the growth of the crop. Early emerging
seedlings have a high probability of being larger at stem elongation and of producing more grains
than those that emerge a few days later.
Seed grading will actively encourage consistency as well as competitiveness of seed. Uniformity of
seed permits more even distribution of grain through the drill. Seed spacing is important as blanks
and then clusters are a disadvantage for optimum plant density.
Alf Hannaford, the father of the seed grading industry in Australia, once compared the importance
of competitive seed to the composition of a football team:
"A football team with weak men loses the game. Twelve good men and six weak ones cannot make
a good performance. The weak impairs the strong and are unable to withstand the opposition".
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PROJECT CONCEPT
The project concept is based on the fact that the farmers of the region would come for cleaning and
grading of Horticulture Commodity like Onion, Potato, Vegetables etc on job basis. The unit will
provide cleaning & grading facility on the pre decided price, After this if needed the farmers will
store this seeds in the storage and when the market goes high farmers left the material from the
storage and sell it in the market. Because the quality of the graded material will always been high
farmers will get good price.
The firm proposes to purchase the raw seeds from the farmers and after the material has passed
through the process of Cleaning & grading and Quality Certificate Labeling and Packaging, the
finished Seeds would be stored in warehouses till we or farmer or other outsiders are able to fetch a
handsome price and after that it would be sold in the open market. In the present scenario the
entrepreneurs are directly purchasing the material from the farmers, which are nearby, and the
farmers will get benefited from the unit. To increase quality of material the firm will do all the
activities to add the value of the product.
Therefore, the entrepreneur has taken decision to establish the project of cleaning, grading and
sorting of Horticulture seeds including collecting the seeds , standardization quality certification,
labeling and packaging has been made, the unit is already having their customers as farmers. The
Project is covered under the scheme of National Horticulture Mission of Central Government
of India in which there is 50% subsidy available, therefore, the subsidy proposal will also be
considered in this proposal.
MARKETING STRATEGY:
The market feedback in respect of horticultural crops has been studied in great detail, which
indicates that the present time and the future expectations from cleaning and grading industries
look very bright since each and every farmer has awareness and is involved in the production of
horticultural crops like coriander and fenugreek since the present level of production is not
sufficient and needs higher participation on the part of farmers. Moreover developing cleaning and
grading industries need creation of higher capacities by new units to fulfill the need of the market.
All this involves huge capital outlay investment.
The farmers would be benefited from the industry as the cleaned and graded material would be able
to fetch more prices then these are realized today.
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CHAPTER - FIVE
LOSSES DUE TO INEFFICIENT

POST HARVEST MANAGEMENT
The total production of fruits and vegetables in the world is around 370 MT. India ranks
first in the world with an annual output of 32 MT. While there are almost 180
families of fruits that are grown all over the world, citrus fruits constitute around
20% of world's total fruit production. Major Indian fruits consist of mango,
banana, citrus fruits, apple, guava, papaya, pineapple and grapes.
Last decades have seen the number of Indian fruit vegetables suppliers and fruits
vegetables exporters rising to an all time high.
India with its current production of around 32 million MT of fruit, accounts for about 8%
of the world's fruit production. The diverse agro-climatic zone in the country makes it
possible to grow almost all varieties of fresh fruits and vegetables in India. The fruit
production in India has recorded a growth rate of 3.9%, whereas the fruitprocessing sector has grown at about 20% per annum. However, the growth rates
have been extensively higher for frozen fruits & vegetables (121%) and dehydrated
fruits & vegetables (24%).
But India loses about 35-40% of the produce due to improper Post Harvest Management.
A loss estimated at Rs.40, 000.00 crores per year! India wastes fruits and vegetables
every year equivalent to the annual consumption of the United Kingdom.
To avoid the Post Harvest Losses a chain of storage facilities, need to be created along
with Post Harvest Management practices like pre cooling, cold storages, drying
yards, storage godown, processing units and refrigerated transport.
Problems faced due to lack of PHM Support:
Horticulture Seed Sector is highly unorganized and individual approach is
adopted for cultivation;
Farmers are compelled to dispose off their produce under exploitative forces
influencing the market in the absence of market intelligence and farmers
friendly marketing facilities;
Due to isolated approach farmers not able to draw full advantage of benefits
which could have accrued in disposing off the produce lacking adequate
storage, marketing support etc;
(MP)
Contact : 09179052380
Unaware of modern techniques and due to lack of investment propensity,

the farmers are forced to resort to traditional ways of farming year after
year;
Farmers are reluctant to store the produce for a long time to fulfill their
immediate obligations and consumptive need.
Benefits of PHM:
Organizing the unorganized sector
Post-harvest processing involves reduction in bulk through cutting, chipping,

drying to remove moisture and storage to maintain the therapeutic efficacy of the medicinal
raw material.
To stop the practice of distress selling
Increase in production, marketing and technical skill due to know how transfer program.
Technical up gradation/implementation of storage facility for multipurpose use
Transfer of appropriate technology and its sustainability To enhance collective bargaining

power
(MP)
Contact : 09179052380

CHAPTER SIX
PROMOTERS
INTRODUCTION
OF
M/s Vishvanath Seeds, which is a partnership firm proposing to commence its operations under the
professional leadership of its constituents and following partners:
1.
Mr. Santosh Kumar,
2.
Smt. Rajkumari Devi
The objective of the proposed venture is for setting up of Horticulture Seed Grading & Cleaning
unit. The promoter has taken a plot of land on registered lease for a long period of 60 years at
Gram: Hussainabad, Tehsil; Bansdeeh, District; Baliya, Uttar Pradesh.
The promoter is belongs to farming community and having vast experience in the field. They have
also strong relations with no. of farmers of the region. The are also involved in trade of farm
produce which will also enable them to providing assured market to farmers and in the process the
farmers feel encouraged to consider diversification in producing high value crops under able
guidance and inspection carried out to ensure high quality of the seeds increasing substantially the
farmers net income.
EXPERIENCE:
Shri Santosh Kumar is having vast experience in the field of modernized farming Sector. He is
having more then 15 year of experience in the field of agriculture.
As the promoter is very keen to development of the region and wants to setup modernized post
harvest management facility in a one roof. Promoter is planning to provide direct service to farmer
for grading and processing of their own seed and also plans to purchase materials directly from the
farmers and after Sorting, Grading Cleaning, Standardization and packaging of the horticulture
Seeds use its expertise and contacts to sell the graded produce in open market at reasonable price.
The company also run its plant on Job Work basis for farmers/traders of the region and also
provides them storage facility.
Considering the above expertise and resources, the promoters are holding high degree of
experience enough to establish and successfully perform the activities of Sorting, Grading,
Cleaning, Standardization and Packing of the horticulture seeds.
(MP)
Contact : 09179052380

CHAPTER SEVEN
COST OF PROJECT AND

MEANS OF FINACE
COST OF PROJECT
The total Cost of Project has been estimated at Rs. 216.44 Lacs. The break-up to the capital cost of
the project comprising of land, factory building, plant and machinery other assets have been
detailed as given below:
S.No
Description
Rs. In Lacs
1.
Cost of Land
2.
Civil Construction- Storage
3.
Covil Construction- Technical
3.
Plant & Machineries
51.70
4.
Furniture & Fixture
1.00
5.
Computers
NIL
105.50
57.84
0.40
_______________________
TOTAL
216.44
_______________________
(MP)
Contact : 09179052380

MEANS OF FINANCE
The total cost of project arrived at Rs. 216.44 Lacs to be financed as per the following finance mix:
Rs. In Lacs
A.
DEBT
Term Loan
150.00
(Including Subsidy @ 50% on total Project Cost from NHM

Under Seed Infrastructure scheme)
B.
EQUITY (Promoters contribution)

Own Capital and
Loans from Friends & relatives
TOTAL
66.44
___________________
216.44
___________________
SUBSIDY:
As per Seed Infrastructure Scheme of National Horticulture Mission, Govt of India, the Project
would be entitled for Susbsidy @ 50% of The Total Project Cost Rs. 216.44or Rs. 100.00 Lacs
which ever is lower. So eligible amount of subsidy would be Rs. 100.00 Lacs.
As the subsidy is back ended so promoters has decide to take term loan from financial institution.
(MP)
Contact : 09179052380

CHAPTER EIGHT
SITE:
The firm is already having land at KhasraNo.: 1800 at Village; Hussianabad, Tehsil; Bansdeeh;
Ditrict: Baliya (UP) which is very well connected by road and very near to farming area.
Location benefit:
The proposed project is located at highly production area of horticulture produce and demand of
seeds by farmer of the region is very high, so proposed project would be very success and also the
area is very less developed in term of post harvest management so farmer of the region will also get
high price and low wastage of their produce.
BUILDING
The proposed project will have following civil infrastructure:
Seed Processing Area (Machine Room)
Raw Material & Finished Goods Storage Area
Office & other Ancillary Infrastructure.
A detailed estimate and drawing of above infrastructure from reputed chartered engineer is
enclosed as part of this report.
(MP)
Contact : 09179052380

PLANT & MACHINERY:
The Schematic Plan indicating processes involved in seed grading/packaging plant:
PROCESSING OF SEED GRADING & CLEANING PLANT
To establish the Horticulture seed grading and cleaning plant, the following machinery is required:
Detail as per quotation of supplier
The raw seed is fed into Grading machine and after completion of the pre-mentioned processing
steps the finished material is the final output. Thereafter it is filled in bags, subjected to weighing,
sealing and labeling procedure requirements as prescribed by the governing agencies.
Now the packaged bag is ready to be dispatched to the customers to complete the
order received obligations.
Hence the unit shall offer processing required for agricultural commodities grading and
standardization & packaging/labeling
Note: Detailed quotation and manual with process chart of above plant & machinery is
enclosed as part of this report.
(MP)
Contact : 09179052380

OTHER ASPECTS
Electricity:
Electricity is available from state electricity board. However, standby DG set would also be
installed to take care of processing need in the event of power failure.
Buildings:
Seed processing plant building, seed stores, reject store and office accommodation is needed to
perform the processing and storage works successfully.
Raw Material:
Raw material for the certified/truthfully label seed will be purchased from local farmers.
Other raw material related service of certification and packing material is available in the market,
which would be purchased with printing done in the name of the company.
Manpower:
Adequate labour force is available around the area to work on the processing p lant. This
would rather be an opportunity for employment to rural youth in this backward rural areas.
Expert support will also be available in the region.
(MP)
Contact : 09179052380

CHAPTER NINE
The capacity of the plant to be installed is 2400 MT yearly. The overall capacity of plant for
Cleaning and Grading 16 Ton per day (With 08 hr working).
The said figures are at 100% capacity based on 150 working days in a year. The different capacity
utilization has been estimated for the project as under:
Year
First Year
Second Year
Third Year onwards
Capacity Utilization
Material graded (Quintals)
40%
45%
50%
9600
10800
12000
The capacity of overall plant and assumption of working hours and days has been decided after
thorough consideration so that business activities can be reached with minimum wastage and
maximum returns and practical.
(MP)
Contact : 09179052380

CHAPTER TEN
MAN POWER AND MANAGEMENT
Successful and efficient functioning of the plant and business depends largely upon the
organisational structure, which largely relies upon proper man power planning. The total
requirement of manpower and their salaries and wages are given in the Schedule F3. The
management of the entity is proposed to be controlled by the Directors with the assistance of other
administrative and production staff. The total number of person to be employed is 08(Direct).
ADMINISTRATIVE STAFF:
Direct of the Company will handle the overall management, administration and supervision of the
plant. They will assisted by the Accountant. Mr. Santosh Kumar will handle all the managerial
work. For Safety point of view there will be Two Watchman are appointed for round the clock
security.
PRODUCTION STAFF:
The production department would be handled by Machine Operator and supervision will be done
by Directors. Machine Operator would be responsible for efficient working and would be assisted
by the skilled and unskilled workers.
The total strength of administrative and production staff may be increased at later stage if necessary
depending upon the work load and other requirement.
(MP)
Contact : 09179052380

CHAPTER ELVEVEN
ASSUMPTIONS
The cost of project, Incomes and profitability statement for its eight years is calculated and is
presented with the report. The various assumptions made for calculation of cost of production and
profitability is listed below:
The installed capacity of Plant would be 2400 MT per Annum.
The capacity utilization of Grading / Processing Plants shall be 40% in the first year, 45%
in the second year and 50% from the third year onwards.
Moratorium period will be six month from the date of sanction, which is inclusive of
construction period of three month i.e. one quarter and interest for first quarter treated as
pre operative expenditure also repayment will be shown from the end of Third quarter of
first year.
The interest on Term Loan has been taken @ 13.50% per annum. Bank will not charge
interest on the sum of subsidy amount. However in projection, service of interest is
calculated on full amount of Term Loan inclusive of subsidy amount.
Depreciation has been calculated on Written Down Value Method for profitability
calculation, Taking rates as per Income Tax Act,1961.
Debt Service Coverage Ratio for each operating year is given in annexure. The average
DSCR is worked out, which envisages that the unit should be in a position to repay
installment of loan in quarterly installment.
An increment of 10% in Wages and salaries shall be rewarded to employees each year.
The project has also kept provision for maintenance of civil structure and Plant &
Machinery and has been taken as 1% and 2% respectively of the cost.
Working Hours per Day 8 Hours for Plant & Machineries.
150 Working Days in a year for Plant & Machineries.
During process of grading, we assume that the difference in input and yield of production
will be compensated through moisture gain.
Pre Incorporation Expenses will be allocated to first five years of project.
(MP)
Contact : 09179052380

OPERATING RESULTS:
A. CASH FLOW:
Cash flow statement for the first Eight years has been furnished in Annexure F - NINE. The overall
cash position of the unit is satisfactory and it would permit the repayment of term loan within eight
years The cumulative cash surplus in 4th and 5th year is estimated to Rs. 64.04 Lacs and Rs. 87.46
Lacs respectively shows the financial soundness of the entity.
B. PROJECTED BALANCE SHEET:
Projected Balance Sheet for Five years has been furnished in Annexure F - SEVEN.
C. DEBT SERVICE COVERAGE RATIO:
DSCR for the each operative year has been given in annexure F - TWELVE. The average DSCR is
2.04, which shows that the unit would be in a position to repay term loan in 16 quarterly
installments.
D. BREAK EVEN POINT:
The B.E.P. analysis has been carried out based on figures of 1 st to 8th year of operation. The details
are given in Annexure F - SIXTEEN. The average BEP in term of installed capacity is worked out
at 54.40% average of first Five year of operation. The first five year average of CASH BEP is
worked out at 25.60%.
D. SENSITIVITY ANALYSIS:
A sensitivity analysis is also given in Annexure F-17 as follows:
F-17 (A):- If cost will increase by 5% then DSCR will be : 1.93
F-17 (B):- If Sales Receipts will decrease by 5%- then DSCR will be : 1.86.
Which also shows that in case of any future down fall project will capable to repay term loan.
(MP)
Contact : 09179052380

CHAPTER TWELVE
SCHEDULE
IMPLEMENTATION
Land Acquisition
: Already completed
Land & site Development
to be developed
Starting of construction activity
November-2013
Power connection
December-2013
Completion of building
March- 2014
Procurement of plant & machinery
March- 2014
Installation of plan & machinery
March- 2014
Trial production
April- 2014
Commencement of Commercial production :
April- 2014
(MP)
Contact : 09179052380

CHAPTER: THIRTEEN
CONCLUSION
We feel pleasure in submitting the final project report on a CLEANING, GRADING AND
PROCESSING OF HORTICULTURE SEEDS Project.
In this study an economic analysis has been presented for the said product. The total capital outlay
for the project is Rs. 216.44 Lacs. The unit would generate employment for 21 persons directly.
The profit generation is from the first year itself. Hence, it would pay Government exchange by
way of various taxes.
The above report has been prepared with intention to hold the entity in obtaining term loan to the
extent of Rs. 150.00 Lacs (Including Subsidy from NHM).
All the data furnished in the aforesaid project is based primarily on desk research, discussions with
knowledgeable persons in the relevant line in trade and industry, also referring Government
publications.
In the light of all technical financial projection made in the annexure, consultant can confidently
say that unit is technically feasible and financially viable and promoters would have bright future
ahead of them.
Note: above report is prepared on the basis of certain assumptions and information provided by
promoter actual data may be differ if future circumstances will change.
(MP)
Contact : 09179052380

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M/s VISHVAJYOTI SEEDS.

Seed Infrastructure Scheme

M/s VISHVAJYOTI SEEDS.

LOSSES DUE TO INEFFICIENT POST

COST OF PROJECT & MEANS OF FINANCE

DETAIL OF COST OF PROJECT

MANPOWER AND MANAGEMENT

M/s VISHVAJYOTI SEEDS.

COST OF PROJECT & MEANS OF FINANCE

DETAIL OF COST OF PROJECT

COST OF PURCHASE OF RAW MATERIAL

GROSS SALES RELISATION

PROJECTED BALANCE SHEET

CASH FLOW STATEMENT

WORKING CAPITAL REQUIREMENT

CALCULATION OF D.S. C.R.

BREAK EVEN POINT

M/s VISHVAJYOTI SEEDS.

M/s VISHVAJYOTI SEEDS.

DETAILS of the Project

Name of the Project

Names of the Partner

1. Santosh Kumar S/o Sh. Vishvanath

Cost of the Project

The partners have a plot of land on lease measuring 9180 sq

Cost of Construction of Seed

Means of Finance (Rs. In Lacs)

Term Loan Including Subsidy

The Company proposes to Set up of an industrial unit for

M/s VISHVAJYOTI SEEDS.

Projected Capacity Utilization

Bank and Branch sanctioning the ..; Branch has agreed to

Term Loan Tenure

The term loan shall be provided to the unit for a period of 7

Break Even Point

The Proposed project is agro based industry being set up for

Strength of the Project Concept

The Farmers of the region who are indulging in growing above

M/s VISHVAJYOTI SEEDS.

M/s VISHVAJYOTI SEEDS.

M/s VISHVAJYOTI SEEDS.

M/s VISHVAJYOTI SEEDS.

Common weed seed

Noxious weed seed

Other crop seed

Other variety seed

Off size seed

Cleaned, Graded, Treated, Packed,

Fig. 1. Undesirable materials removed during processing of

M/s VISHVAJYOTI SEEDS.

Treating and bagging

Fig. 2. Basic flow and essential steps in seed processing

M/s VISHVAJYOTI SEEDS.

M/s VISHVAJYOTI SEEDS.

M/s VISHVAJYOTI SEEDS.

M/s VISHVAJYOTI SEEDS.

M/s VISHVAJYOTI SEEDS.

completion of drying, grading and processing as the modern techniques envisage

Seed is available at the door steps of farms at an appropriate time.

Seed availability at affordable cost even lesser than market price.

Increased confidence among the farmers about the quality because of

Producer and consumer are mutually benefited.

Facilitates fast spread of new cultivars of different kinds.