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Agriculture: Project Opportunities in Assam

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Friday, February 24, 2012

Profile: While most other states in India are gradually moving away from their traditional agriculture-based economy toward industry or service-oriented economy, Assam is still heavily dependent on the agricultural sector. Today, India ranks second worldwide in farm output. Agriculture and allied sectors like forestryand fisheries accounted for 16.6% of the GDP in 2009, about 50% of the total workforce. The economic contribution of agriculture to India's GDP is steadily declining with the country's broad-based economic growth. Still, agriculture is demographically the broadest economic sector and plays a significant role in the overall socio-economic fabric of India.

Resources:Assam Agriculture is the primary sector in the state's economy. The socio-economic condition of Assam largely depends on its agricultural production.  Assam produces both food and cash crops. The principal food crops produced in the state are rice (paddy), maize (corn), pulses, potato, wheat, etc., while the principal cash crops are tea, jute, oilseeds, sugarcane, cotton, and tobacco. Although rice is the most important and staple crop of Assam, its productivity over the years has not increased while other crops have seen a slight rise in both productivity and land acreage. 

Government policies:The Government of Assam in consonance with    the       National Agriculture Policy laid down few policy objectives in the Agriculture Sector. Those include: 

·       The Agriculture and allied sector grows at the rate of 4 p.c. per annum for the next decade to provide food security and to improve the nutritional intake of the people of the State as well as significantly decrease the population below the poverty line.

·       To increase the productivity of all major crops, particularly that of rice, wheat, pulses and oil seeds.

·       To increase the cropping intensity in the sector through increase in irrigation facilities as well as giving a boost to mechanization in the State, to make it at par with the rest of the country by the end of the 10th plan.

·       To diversify into other crops, specially wheat, oilseeds, and partly pulses, as well as improve production of horticultural crops.

·       As the bulk of the population in the State lives in the rural area and most of the people are dependent on Agriculture and allied sectors for their livelihood, the Government sees this sector as the engine for growth of the economy in the long run and wishes to treat the Agriculture Sector as an area of maximum employment generation in the State.

·       Since the resources at the disposal of the State are limited, the endeavor will be to converge the resources available under various Government schemes like SGSY and PMGSY etc. to ensure that funds are spent keeping in view the long term growth of the Agriculture and Allied Sector in the State.

 

Opportunities for entrepreneurs:Agriculture is one of the major sectors to venture and gives wide scope for entrepreneurs to invest in it. Following are some of the potential projects:

·       Rice Bran Based Solvent Extraction Plant

·       Paper from Waste Paper, Bamboo Chips, Rice Husk & Wheat Husk

·       Precipitated Silica from Rice Husk Ash

·       Cement From Rice Husk

·       Straw Board And Mill Board From Rice Husk And Bagasse

 

Click here to take a look: http://www.niir.org/profiles/profiles/z,,81,0,a/index.html

·       Atta Chakki Plant

·       Potassium Sulphate (Fertilizer Grade)

·       MINI FERTILIZER PLANT

·      MIXED FERTILIZER (FROM ORGANIC WASTE)

Click here to take a look: http://www.niir.org/profiles/profiles/z,,7c,0,a/index.html

·       Dall Mill (split Dalls/ Pulses For Chhilke-wali Moong, Urad, Arhar, Channa, Masoor)

·       Mini Sugar Plant

·       Poha (rice Flakes)

·       Atta, Maida Suji & Wheat Bran (Roller Flour Mill)

Click here to take a look: http://www.niir.org/profiles/profiles/z,,36,0,a/index.html

 

Niir Project Consultancy Services (NPCS) provides you detailed project reports (DPR) on the above fields. Each detailed project reports cover all the aspects of business, from analysing the market, confirming availability of various necessities such as plant & machinery, raw materials to forecasting the financial requirements. The scope of the report includes assessing market potential, negotiating with collaborators, investment decision making, corporate diversification planning etc. in a very planned manner by formulating detailed manufacturing techniques and forecasting financial aspects by estimating the cost of raw material, formulating the cash flow statement, projecting the balance sheet etc.

We also offer self-contained Pre-Investment and Pre-Feasibility Studies, Market Surveys and Studies, Preparation of Techno-Economic Feasibility Reports, Identification and Selection of Plant and Machinery, Manufacturing Process and or Equipment required, General Guidance, Technical and Commercial Counselling for setting up new industrial projects on the following topics.

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Our Detailed Project report aims at providing all the critical data required by any entrepreneur vying to venture into Project. While expanding a current business or while venturing into new business, entrepreneurs are often faced with the dilemma of zeroing in on a suitable product/line.

And before diversifying/venturing into any product, wish to study the following aspects of the identified product:
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The report first focuses on enhancing the basic knowledge of the entrepreneur about the main product, by elucidating details like product definition, its uses and applications, industry segmentation as well as an overall overview of the industry sector in India. The report then helps an entrepreneur identify the target customer group of its product. It further helps in making sound investment decision by listing and then elaborating on factors that will contribute to the growth of product consumption in India and also talks about the foreign trade of the product along with the list of top importing and top exporting countries. Report includes graphical representation and forecasts of key data discussed in the above mentioned segment. It further explicates the growth potential of the product. The report includes other market data like key players in the Industry segment along with their contact information and recent developments. It includes crucial information like raw material requirements, list of machinery and manufacturing process for the plant. Core project financials like plant capacity, costs involved in setting up of project, working capital requirements, projected revenue and profit are further listed in the report.

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Our Market Survey cum Detailed Techno Economic Feasibility Report Contains following information:

Introduction
  • Project Introduction
  • Project Objective and Strategy
  • Concise History of the Product
  • Properties
  • BIS (Bureau of Indian Standards) Provision & Specification
  • Uses & Applications
Market Study and Assessment
  • Current Indian Market Scenario
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Raw Material
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Personnel (Manpower) Requirements
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Plant and Machinery
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  • Miscellaneous Items
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Manufacturing Process and Formulations
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Infrastructure and Utilities
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Project at a Glance

Assumptions for Profitability workings
Plant Economics
Production Schedule
Land & Building
  • Factory Land & Building
  • Site Development Expenses
Plant & Machinery
  • Indigenous Machineries
  • Other Machineries (Miscellaneous, Laboratory etc.)
Other Fixed Assets
  • Furniture & Fixtures
  • Pre-operative and Preliminary Expenses
  • Technical Knowhow
  • Provision of Contingencies
Working Capital Requirement Per Month
  • Raw Material
  • Packing Material
  • Lab & ETP Chemical Cost
  • Consumable Store
Overheads Required Per Month And Per Annum
  • Utilities & Overheads (Power, Water and Fuel Expenses etc.)
  • Royalty and Other Charges
  • Selling and Distribution Expenses
Salary and Wages
Turnover Per Annum
Share Capital
  • Equity Capital
  • Preference Share Capital
Annexure 1:: Cost of Project and Means of Finance
Annexure 2:: Profitability and Net Cash Accruals
  • Revenue/Income/Realisation
  • Expenses/Cost of Products/Services/Items
  • Gross Profit
  • Financial Charges
  • Total Cost of Sales
  • Net Profit After Taxes
  • Net Cash Accruals
Annexure 3 :: Assessment of Working Capital requirements
  • Current Assets
  • Gross Working. Capital
  • Current Liabilities
  • Net Working Capital
  • Working Note for Calculation of Work-in-process
Annexure 4 :: Sources and Disposition of Funds
Annexure 5 :: Projected Balance Sheets
  • ROI (Average of Fixed Assets)
  • RONW (Average of Share Capital)
  • ROI (Average of Total Assets)
Annexure 6 :: Profitability ratios
  • D.S.C.R
  • Earnings Per Share (EPS)
  • Debt Equity Ratio
Annexure 7 :: Break-Even Analysis
  • Variable Cost & Expenses
  • Semi-Var./Semi-Fixed Exp.
  • Profit Volume Ratio (PVR)
  • Fixed Expenses / Cost
  • B.E.P
Annexure 8 to 11:: Sensitivity Analysis-Price/Volume
  • Resultant N.P.B.T
  • Resultant D.S.C.R
  • Resultant PV Ratio
  • Resultant DER
  • Resultant ROI
  • Resultant BEP
Annexure 12 :: Shareholding Pattern and Stake Status
  • Equity Capital
  • Preference Share Capital
Annexure 13 :: Quantitative Details-Output/Sales/Stocks
  • Determined Capacity P.A of Products/Services
  • Achievable Efficiency/Yield % of Products/Services/Items
  • Net Usable Load/Capacity of Products/Services/Items
  • Expected Sales/ Revenue/ Income of Products/ Services/ Items
Annexure 14 :: Product wise domestic Sales Realisation
Annexure 15 :: Total Raw Material Cost
Annexure 16 :: Raw Material Cost per unit
Annexure 17 :: Total Lab & ETP Chemical Cost
Annexure 18 :: Consumables, Store etc.,
Annexure 19 :: Packing Material Cost
Annexure 20 :: Packing Material Cost Per Unit
Annexure 21 :: Employees Expenses
Annexure 22 :: Fuel Expenses
Annexure 23 :: Power/Electricity Expenses
Annexure 24 :: Royalty & Other Charges
Annexure 25 :: Repairs & Maintenance Exp.
Annexure 26 :: Other Mfg. Expenses
Annexure 27 :: Administration Expenses
Annexure 28 :: Selling Expenses
Annexure 29 :: Depreciation Charges – as per Books (Total)
Annexure 30 :: Depreciation Charges – as per Books (P & M)
Annexure 31 :: Depreciation Charges - As per IT Act WDV (Total)
Annexure 32 :: Depreciation Charges - As per IT Act WDV (P & M)
Annexure 33 :: Interest and Repayment - Term Loans
Annexure 34 :: Tax on Profits
Annexure 35 ::Projected Pay-Back Period And IRR