FIVE YEARS BUSINESS PLAN FOR THE

SUSTAINABILITY OF KURINJI MALAI

FARMERS PRODUCER COMPANY
LIMITED
 INDEX

S.No Contents Page No

I Key information of KURINJI MALAI FPCL 4

II Details of Board of Directors 5

III Kodaikanal District Road Map & Block Map 6

1 Executive Summary 7

2 Introduction 7

2.1 Project Development Objectives 9

2.2 Area, Production, Productivity And Marketable Surplus Of Crops 9

grown in Dindigul district
3 Details about KURINJI MALAI FPCL 10

3.1 Brief note on the steps involved in the proposed business activities 11

A. Institutional mechanism 11

B. Procurement Plan 12

C. Way of Procurement Plan 13

D. Marketing Plan 13

4 Market Analysis 14

5 Business Plan 15

6 Key Financial Indicators 17

7 Benefit of FPCL 32

8 Results 33

9 Conclusion 33

Key information of VAJURA FPCL:

Sl Particulars Details
No
 1 Name of the FPC Kurinji Malai Farmer Producer
Company Limited
2 District Dindigul
3 Register Office Address : 4-3-68, Kovil Veetu Theru, Mannavanur,
Dindigul-624103
4 Current Office Address : 4-3-68, Kovil Veetu Theru, Mannavanur,
Dindigul- 624103

5 Name of the Chairman and Contact No. S.G.Sakthivel, 9486503060

6 E-mail ID kurinjimalaifpc@gmail.com

7 Name of CEO & Contact NO. R.Martin ,7373682162

8 Registration/ Incorporation No and Date U01100TN2021PTC147308 , 22.10.2021

9 Business of FPC (List main products) Hill Garlic & Carrot

10 Total Number of shareholder members of 300
VAJURA FPCL
11 No of small, marginal and landless Small Farmers: 27 Marginal Farmers: 154
shareholder members Tenant :19
Male : 147 Female : 153
12 Authorized capital (in Rs.) Rs 1,00,000akhs
13 Paid up Share capital (in Rs.) Rs4,00,000 Lakhs
14 Bank Name and address in which account ICICI Bank , Kodaikanal
is maintained
15 IFSC Code and E-mail I.D of Bank ICIC0000803
16 Account Number 080305006366
17 No of Directors and of which no of Male – 9 Female – 1
Woman Director
18 Names of functional committees of the 1. Procurement and sales Committee
FPC and activities of each committee 2. Marketing Committee
3. Finance Committee
4. Technical Committee
5. Management Committee
6. Mobilization Committee

19 Whether Business Plan is enclosed Enclosed

20 Contribution of the required margin Rs : 10 Lakhs
amount of the Business Plan

II. Details of Board of Directors of VAJURA FPCL

S.No Name & Address Sex Age Qualification Designation Profession

1.
Male 52 8th Chairman Farmer
S G.Sakthivel
Male 35 B.Sc
2. Janaharaj Director Farmer

3 Male 37 5th Director Farmer

Dhinakaran

4. Male 43 10th Director Farmer

Magudeswaran

5. Male 39 10th Director Farmer

Aarikrishnan

6. Male 42 10th Promoter Farmer

Gopalakrishnan
Male 12th Promoter
7. Dhanapal 46 Farmer

Male 10th Promoter

8 Dhanamurugan 39 Farmer

Male 6th Promoter

9 Kannadhasan 47 Farmer

8th Promoter
10 Azhagujothi Male 37 Farmer

Block Index Map:

 Kurinji Malai Farmers Producer Company Limited

Business Plan

1. EXECUTIVE SUMMARY

Collectivization of producers, especially small and marginal

farmers, into producer organizations has emerged as one of the most effective
pathways to address the many challenges of agriculture but most importantly,
improved access to investments, technology and inputs and markets. Department of
Agriculture and Cooperation, Ministry of Agriculture, Govt. of India identified farmer
producer organization registered under the special provisions of the Companies Act,
1956 as the most appropriate institutional form around which to mobilize farmers
 and build their capacity to collectively leverage their production and marketing
strength.
The Coodu Trust, CBBO, Dindigul district, for TNSFAC for forming
FPOs, formed Kurinji Malai Farmer Producer Company Limited at Mannavanur cluster.

The proposed activities are to expand the Agri Business Centre in Mannavanur Village
and procurement of Hill Garlic, It is proposed to purchase machineries for the
expansion and establishing the infrastructure in modernized sector to upgrade the
products. It is very helpful to upgrade our machineries and store the material in good
condition to sell to the customer.

2. Introduction
KURINJI MALAI FARMER PRODUCER COMPANY LIMITED

A Farmer Producer Organization was registered on 22.10.2021 under the

Companies Act 2013 and has its registered office at4-3-68, Kovil Veetu Theru,
Mannavanur, Dindigul, Tamil Nadu, India, 624103. The company has 100 shareholders.
The major focus has been in promotion of small and marginal farmers into FIG’s and
FPG’s. The Kurinji Malai Farmer Producer Company Limited has a strong back up of
committed promoters and directors who are however not very skillful in terms of
marketing and financial aspects of business management but have expertise in
agriculture production and understand collective marketing concepts. It has applied for
Rs. 2 lakhs for Equity grant from the Implementing Agency assisted by the 10,000 FPO
Formation and Promotion of Central Sector Scheme and implemented by the Govt. of
India. FPOs can get up to Rs. 18 lakh / FPO as Management Support. This Company will
have its main revenue generating business activities in terms of aggregation and
marketing of produce.

The Producer Company formed in Kodaikanal,Mannavanur. This FPO has been

established in Mannavanur village of Dindigul. The major crops identified for leveraging
in this block are Garlic, Potato,Green Peas,Carrot etc. Details about the crop portfolio in
this block is detailed out in this plan. This section also highlights the number of villages
located in this block within the block. These 4 villages form the Watershed for business
for the FCSC that is proposed to be established. There are around 5466 HHs with
cultivable land of 6083 Ha in the area. Kodaikanal block is one of the Eight blocks of
Dindigul district. It is in the Western Ghats Hill Ranges with two distinct geographical
zones, The Upper Palani Hills and The Lower Palani hills. The block is a Rainfall assured
Zone receiving the shower throughout the year and the maximum rainfall received is
during the NE Monsoon period. The block enjoys both Sub-Tropical and Temperate
climates. More Horticultural crops-Vegetables, Spices, Plantation and Floricultural crops
are grown here. Known for its unique Hill Garlic cultivation it is awarded the GI tag. Cut
flowers and spices are export-oriented crops that attract the corporates to have lands
here. The block has a population of 115250 with a gross cropped area of 15780.415ha.

Mannavanur cluster is located at a distance of 38 Km from the block headquarters

supporting the 20957 population. The cluster is having a Net sown area of 32228.9 Ha.
The cultivation of Potato, carrot, Hill Garlic, Green Peas are taken-up in the cluster
Kodaikanal Malai Poondu is known for its medicinal and preservative properties due to
its anti-oxidant and anti-microbial potential,which are attributed to the presence of
higher organo-sulfur compounds, phenols and flavonoids compared to other garlic
varieties.
Carrot (Daucus carota subsp. sativus) is a root vegetable, typically orange in color,
native to Europe and Southwestern Asia. The plant probably originated in Persia and
was originally cultivated for its leaves and seeds. The most commonly eaten part of the
plant is the taproot, although the stems and leaves are also eaten.
Green Pea is cultivated for its tender and immature pods for use as vegetable and
mature dry pods for use as a pulse. pea is sown from beginning of October to middle of
November. The optimum monthly mean temperature for growth of plants is 10-18.3oC.
 2.1 PROJECT DEVELOPMENT OBJECTIVES:

1. Aims at enhancing farmer’s linkages to market by providing alternate marketing

channel and improve farm level post-harvest management and value addition and
thereby increasing the income of the farmer.
2. Reduction of post-harvest loss by providing post-harvest materials.
3. Farmers will get remunerative price for their produce by collective marketing.
4. Value addition and marketing of the produces will be enhanced through the
development of agri entrepreneurs in the FPCL In Future
5. Thus business plan makes to expand the business in large scale.

TABLE 2.2 District and Block Details

Dindigul district is located between 10 005” and 10009” North

Latitude and 77030” and 78020” east Longitude sprawling over an area of 6266.64 square
kilometers. . Dindigul District is bounded by Erode, Tirupur, Karur and Trichy districts on
the North, by Sivagangai and Trichy District on the East, by Madurai District on the South
and by Theni and Coimbatore Districts and Kerala State on the West. It is spread over on
area of 6266.64 Sq. Km. Dindigul District comprises 3 Revenue Divisions, 10 Taluks, 14
Panchayat Unions, one Corporation, 3 Municipalities and 23 Town Panchayat. According
to the 2011 census, The total population is 21,59,775 with an average MSL is (+) 280 M.
The plains experience the tropical climate and Semi-arid condition and hill area
experience sub-tropical climate. The mean annual rainfall is 836mm. The district is
bestowed with black and red soils supporting variety agricultural crops like Cholam
(6162.445 Ha), Maize (3494.845 Ha), cotton (1298.51 Ha), Groundnut (606 Ha), Green
gram (47.08 Ha), Black gram (131.8 Ha) and also horticultural crops like Tomato (491 Ha),
Brinjal (95.4 Ha), Mango (318.5 Ha), Banana (102.2 Ha). The net sown area of the district
is 215462 ha.

8
3. DETAILS ABOUT VAJURA FPCL

VAJURA FARMERS PRODUCER COMPANY LIMITED

History

Coodu Trust emerged in year 2000 based on the motivation of a few young and dynamic
likeminded persons and professionals who pledged to do efficient, constructive and
everlasting social development work for the under privileged of the society to develop
self-sufficient and self-reliant communities. Coodu Trust is a not for profit voluntary
organization to undertake charitable, educational and development activities for the
welfare of downtrodden and marginalized needy people of society.

Coodu Trust has undertaken watershed programmes in 14 districts of Tamil Nadu and
various social development projects in 30 districts. Over the years Coodu Trust emerged
as one of the leading NGO in rural development activities in Tamil Nadu especially on
community organization, capacity building, research, Monitoring & Evaluation and
documentation on various rural development issues. We are implementing projects in
Watershed Development, Women Development, Self Help Groups (SHGs), Micro-Credits,
Agriculture and Organic farming, Health, Skill Development, Research and
Documentation works.

Being this NGO interventions the farming community thirsts a forum to assist their
agricultural development. Following the process, very meaningful question raised by the
farmers to “Standard Cost for the Agricultural Produces” is the fittest response of
Constituting “Kurinji Malai Farmers Producer Company Limited” in 2021.

9
Future Plans

 Input license
 Procurement
 Storage Facility
 Reduce agricultural production cost.
 Payment through bank for all Business Activities.
 Promote organic or Non-Pesticide Management agriculture.
 Extent Agri - Business Centre at the Panchayat level for Home Delivery and Procurement.
 Integrated Value Chain Complex for all agri-related resources right from farmers selling
raw materials to FPO to purchasing as value added products from FPOs.
 Develop large-scale model farms using new technologies and promoting exports business
of commodities through international buyers.

3.1. BRIEF NOTE ON THE STEPS INVOLVED IN THE PROPOSED BUSINESS

ACTIVITIES

A. Institutional Mechanism:

The company is governed by the Board of Directors elected among the member
share holders with the guidance of Coodu Trust RI. Day to day operations are managed
by a professional team headed by the Chief Executive Officer. Board meets once in a
month to discuss the day to day activities and review the work of the proposed plan.
They made resolutions in the meeting to deliver the work on day today process

10
 STRUCTURE OF BOARD

BODs

Chairman

CEO

Management Purchase and sales Technical

Finance Committee
Committee Committee Committee
I

Share Holders

B. Procurement Plan
Kurinji Malai FPCL predominant business is aggregation and selling thereby getting
better margins and lower cost on handling and transportation. Instead of farmers selling
to small agents in bargain, aggregated produce is sold to large traders at negotiated
price. Procurement by Company ensures right measurement of weight and prompt
payment for the produce procured. The company supplied inputs to the members that
help the farmers get quality inputs delivered at their respective villages. This reduces the

11
cost to the farmers as this arrangement reduces the cost f local transportation from the
fertilizer outlet to the farmers place.
C. Way of Procurement
Procurement and sales committee and the Lead farmer, who is responsible for
consolidating individual farmer produce in the selected villages and accumulating in a
common area where our company’s third party hired vehicle goes and picks up the
produce and get transported to company premises.

Trading

Farm Gate Procurement Processing Unit

Productio Packing Despatc

From Farmers n h

End Users
D. Marketing Plan

The Kurinji Malai FPCL will act as a channel in the value chain from the producer to the
consumer. The business as owned by the producers will work for the interest of the
farming communities. The profit if any gained by the company will also go to the
producers who are the shareholders as a dividend. The sales price is considered at 3% to
40% higher than the procurement price for all the products and with a annual
appreciation of 5% both in the procurement price and the sale price of the products. As
the business volume and capacities increase, the company would be looking for higher
margin. There will more value added products in the product portfolio.

12
 B2B

ABC Unit

Processing Centre Net working Partners

Other Farmer Producer

Companies

4. MARKET ANALYSIS

4.1. Target Market

Kurinji Malai FPCL is situated at Mannavanur village in Kodaikanal Taluk,

Dindigul District, Tamilnadu. Dinidgul district comprises of 7 Taluks and 11 blocks. The
target market of this FPCL is initially Madurai and Didnigul, further meeting the
domestic requirement of produces for the house hold. Then it reaches out India as well
as internationally.

4.2 Products or service analysis:

a. Extension service in capacity building both on Technical and Governance is to

be provided.

b. Value addition processing technology and product making technology has to be

imparted to member’s level or rather FIGs level.

4.3 Marketing strategy for proposed activities

Direct Trading, Value Addition, Products Branding, Packing as per the need
of customer

7.4 Promotional activities:

a. Advertising the available product in FPC’s Brand name.

b. Export marketing through buy back arrangement.

13
5. BUSINESS PLAN
5.1. PROJECT COST

5.1.1.Projected performance for Groundnut Oil and profitability :

Production capacity per

Month : 2800
Sl Cost/ Total
No. of
N Particulars Unit Unit (in Costs in Remarks
o
units
RS.) Rs.
Costs of production
I (Variable costs)

1 Raw material cost Kg 2800 90 252,000 252,000

2 Processing charge No. 2800 40.5 113,400 113,400

3 Skilled labours 8 Days 2800 2.86 8,000

4 Unskilled labours Month 2800 1.79 5,000

5 Supervisor Month 2800 3.6 10,000 23,000

6 EB Month 2800 6.3 17,640

7 Packing material No. 2800 9 25,200

8 Packing Charges No. 2800 9 25,200

9 labour / Handling cost No. 2800 4.5 12,600

1
0 Travel Expenses No. 2800 2.025 5,670 86,310

Sub Costs 169.54 474,710 474,710

Tax 5% on Oil No. 2800 8.48 23,736 23,736

Total Cost 178 498,446 498,446

Less Cake cost No. 2800 18 50,400 50,400

Total Cost No. 2800

14
 160 448,046 448,046

Costs of production
II (Fixed costs)

1 Rent Month 1 8,000 8,000

2 Admin. Expenses Month 1 600 600

3 Audit charges Month 1 500 500

4 Communication exp. Month 1 300 300

5 Postal/courier Month 1 500 500

6 Insurance Month 1 1,000 1,000

7 Training Exp. Month 1 1,000 200

8 Transportation Month 1 100 100

9 Machinery maintenance Month 1 713 713

1
0 Miscellaneous Month 1 200 200

Total costs Month 1 12,113

Bank interest charges 4,688

Total fixed costs 16,801

Variable costs 178 per kg

Sale cost 214 per kg
per
Fixed Costs 16,801 month
III Production Capacity May-20 Jun-20 Jul-20 Aug-20 Sep-20

Vol. of prod/month 1,260 1,260 1,260 1,260 1,260

Cost of production 224,300 224,300 224,300 224,300 224,300

Fixed costs 16,801 16,801 16,801 16,801 16,801

15
 Total costs 241,101 241,101 241,101 241,101 241,101

Revenue from sales 269,161 269,161 269,161 269,161 269,161

Net income 28,060 28,060 28,060 28,060 28,060

Tax 30% 8,418 8,418 8,418 8,418 8,418

Profit after Tax 19,642 19,642 19,642 19,642 19,642

Repayment on Interest 7,500 7,500 7,500 7,500 7,500

Net Profit 12,142 12,142 12,142 12,142 12,142

Yearly Production
IV Capacity Yr 1 Yr 2 Yr 3 Yr 4 Yr 5

Vol. of prod/year 12,600 15,750 19,688 24,609 30,762

2,803,75
Cost of production 2,243,005 6 3,504,695 4,380,869 5,476,086

Fixed costs 201,606 252,008 315,009 393,762 492,202

3,055,76
Total costs 2,444,611 3 3,819,704 4,774,630 5,968,288

3,364,50
Revenue from sales 2,691,606 7 4,205,634 5,257,042 6,571,303

Net income 246,995 308,744 385,930 482,412 603,015

Tax 30% 74,098 92,623 115,779 144,724 180,905

Profit after Tax 172,896 216,121 270,151 337,688 422,111

Repayment of Interest 4,688 4,688 4,688 4,688 4,688

Net Profit 168,209 211,433 265,463 333,001 417,423

5.1.2.Projected performance for Paddy and

profitability :

Production capacity per

Month : 1000

16
Sl Total
No. of Cost/Unit
N Particulars Unit Costs in Remarks
o
units (in RS.)
Rs.
Costs of production
I (Variable costs)

1 Raw material cost Kg 1000 325 325,000 325,000

2 Processing charge No. 1000 16.25 16,250 16,250

3 Skilled labours 20 Days 1000 6.00 6,000

4 Driver Month 1000 10.00 10,000

5 Supervisor Month 1000 10.0 10,000 26,000

6 EB Month 1000 0.5 500

7 Packing material No. 1000 22.75 22,750

8 Packing Charges No. 1000 16.25 16,250

9 labour / Handling cost No. 1000 16.25 16,250

1
0 Travel Expenses No. 1000 0.8125 813 56,563

Total Variable Costs 423.81 423,813 423,813

GST 5% 21.19 21,191 21,191

Total costs 445 445,003 445,003

Costs of production
II (Fixed costs)

1 Rent Month 1 8,000 8,000

2 Admin. Expenses Month 1 600 600

3 Audit charges Month 1 500 500

4 Communication exp. Month 1 300 300

5 Postal/courier Month 1 500 500

17
6 Insurance Month 1 1,000 1,000

7 Training Exp. Month 1 1,000 200

8 Transportation Month 1 100 100

9 Machinery maintenance Month 1 713 713

1
0 Miscellaneous Month 1 200 200

Total costs Month 1 12,113

Bank interest charges 4,688

Total fixed costs 16,801

Variable costs 445 per Bag

Sale cost 498 per Bag
per
Fixed Costs 16,801 month
III Production Capacity May-20 Jun-20 Jul-20 Aug-20 Sep-20

Vol. of prod/month 1,000 1,000 1,000 1,000 1,000

Cost of prodction 445,003 445,003 445,003 445,003 445,003

Fixed costs 16,801 16,801 16,801 16,801 16,801

Total costs 461,804 461,804 461,804 461,804 461,804

Revenue from sales 498,404 498,404 498,404 498,404 498,404

Net income 36,600 36,600 36,600 36,600 36,600

Tax 30% 10,980 10,980 10,980 10,980 10,980

Profit after Tax 25,620 25,620 25,620 25,620 25,620

Repayment on Interest 7,500 7,500 7,500 7,500 7,500

Net Profit 18,120 18,120 18,120 18,120 18,120

IV Yearly Production Capacity Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
Vol. of prod/year

18
 10,000 12,500 15,625 19,531 24,414

4,450,03 10,864,3
Cost of prodction 1 5,562,539 6,953,174 8,691,467 34

Fixed costs 201,606 252,008 315,009 393,762 492,202

4,651,63 11,356,5
Total costs 7 5,814,547 7,268,183 9,085,229 36

4,984,03 12,168,0
Revenue from sales 5 6,230,044 7,787,555 9,734,443 54

Net income 332,398 415,497 519,371 649,214 811,518

Tax 30% 99,719 124,649 155,811 194,764 243,455

Profit after Tax 232,678 290,848 363,560 454,450 568,063

Repayment of Interest 9,375 9,375 9,375 9,375 9,375

Net Profit 223,303 281,473 354,185 445,075 558,688

5.4.Loan Particulars
Total Loan Rs. Lakh
2,500,000.00
Interest 9.0%
Tenure Years
Repayment 5.0 Years

Capex Loan
No Month Opening Interest Prinicipal Total Closing
1 Apr-20 2,500,000 18,750 - 18,750 2,500,000
2 May-20 2,500,000 18,750 - 18,750 2,500,000
3 Jun-20 2,500,000 18,750 - 18,750 2,500,000
4 Jul-20 2,500,000 18,750 - 18,750 2,500,000
5 Aug-20 2,500,000 18,750 - 18,750 2,500,000
6 Sep-20 2,500,000 18,750 - 18,750 2,500,000
7 Oct-20 2,500,000 18,750 41,667 60,417 2,458,333
8 Nov-20 2,458,333 18,438 41,667 60,104 2,416,667
9 Dec-20 2,416,667 18,125 41,667 59,792 2,375,000
10 Jan-21 2,375,000 17,813 41,667 59,479 2,333,333
11 Feb-21 2,333,333 17,500 41,667 59,167 2,291,667
12 Mar-21 2,291,667 17,188 41,667 58,854 2,250,000

19
 Total 203,125 208,333 411,458

No Month Opening Interest Principal Payment Closing

1 Apr-21 2,250,000 16,875 41,667 58,542 2,208,333
2 May-21 2,208,333 16,563 41,667 58,229 2,166,667
3 Jun-21 2,166,667 16,250 41,667 57,917 2,125,000
4 Jul-21 2,125,000 15,938 41,667 57,604 2,083,333
5 Aug-21 2,083,333 15,625 41,667 57,292 2,041,667
6 Sep-21 2,041,667 15,313 41,667 56,979 2,000,000
7 Oct-21 2,000,000 15,000 41,667 56,667 1,958,333
8 Nov-21 1,958,333 14,688 41,667 56,354 1,916,667
9 Dec-21 1,916,667 14,375 41,667 56,042 1,875,000
10 Jan-22 1,875,000 14,063 41,667 55,729 1,833,333
11 Feb-22 1,833,333 13,750 41,667 55,417 1,791,667
12 Mar-22 1,791,667 13,438 41,667 55,104 1,750,000
Total 181,875 500,000 681,875

No Month Opening Interest Principal Payment Closing

1 Apr-22 1,750,000 13,125 41,667 54,792 1,708,333
2 May-22 1,708,333 12,813 41,667 54,479 1,666,667
3 Jun-22 1,666,667 12,500 41,667 54,167 1,625,000
4 Jul-22 1,625,000 12,188 41,667 53,854 1,583,333
5 Aug-22 1,583,333 11,875 41,667 53,542 1,541,667
6 Sep-22 1,541,667 11,563 41,667 53,229 1,500,000
7 Oct-22 1,500,000 11,250 41,667 52,917 1,458,333
8 Nov-22 1,458,333 10,938 41,667 52,604 1,416,667
9 Dec-22 1,416,667 10,625 41,667 52,292 1,375,000
10 Jan-23 1,375,000 10,313 41,667 51,979 1,333,333
11 Feb-23 1,333,333 10,000 41,667 51,667 1,291,667
12 Mar-23 1,291,667 9,688 41,667 51,354 1,250,000
Total 136,875 500,000 636,875

No Month Opening Interest Principal Payment Closing

1 Apr-23 1,250,000 9,375 41,667 51,042 1,208,333
2 May-23 1,208,333 9,063 41,667 50,729 1,166,667
3 Jun-23 1,166,667 8,750 41,667 50,417 1,125,000
4 Jul-23 1,125,000 8,438 41,667 50,104 1,083,333
5 Aug-23 1,083,333 8,125 41,667 49,792 1,041,667
6 Sep-23 1,041,667 7,813 41,667 49,479 1,000,000
7 Oct-23 1,000,000 7,500 41,667 49,167 958,333
8 Nov-23 958,333 7,188 41,667 48,854 916,667

20
 9 Dec-23 916,667 6,875 41,667 48,542 875,000
10 Jan-24 875,000 6,563 41,667 48,229 833,333
11 Feb-24 833,333 6,250 41,667 47,917 791,667
12 Mar-24 791,667 5,938 41,667 47,604 750,000
Total 91,875 500,000 591,875

No Month Opening Interest Principal Payment Closing

1 Apr-24 750,000 5,625 41,667 47,292 708,333
2 May-24 708,333 5,313 41,667 46,979 666,667
3 Jun-24 666,667 5,000 41,667 46,667 625,000
4 Jul-24 625,000 4,688 41,667 46,354 583,333
5 Aug-24 583,333 4,375 41,667 46,042 541,667
6 Sep-24 541,667 4,063 41,667 45,729 500,000
7 Oct-24 500,000 3,750 41,667 45,417 458,333
8 Nov-24 458,333 3,438 41,667 45,104 416,667
9 Dec-24 416,667 3,125 41,667 44,792 375,000
10 Jan-25 375,000 2,813 41,667 44,479 333,333
11 Feb-25 333,333 2,500 41,667 44,167 291,667
12 Mar-25 291,667 2,188 41,667 43,854 250,000
Total 46,875 500,000 546,875

No Month Opening Interest Principal Payment Closing

1 Apr-25 250,000 1,875 41,667 43,542 208,333
2 May-25 208,333 1,563 41,667 43,229 166,667
3 Jun-25 166667 1,250 41,667 42,917 125,000
4 Jul-25 125000 937 41,667 42,604 83,333
5 Aug-25 83333 625 41,667 42,292 41,667
6 Sep-25 41667 312 41,667 41,979 0
7 Oct-25 - - - - -
8 Nov-25 - - - - -
9 Dec-25 - - - - -
10 Jan-26 - - - - -
11 Feb-26 - - - - -
12 Mar-26 - - - - -
Total
6,562.50 250,000.00 256,562.50

5.2.Source of Capital Rs in Lakhs

21
 Sl No Source Amount

1 Own Fund 1,000,000

2 Loan from Bank 2,500,000

Total 3,500,000

5.3.Working Capital Requirement of KMFPCL

Rs in Lakhs
Sl No Particulars Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Total Amount

1 Groundnut 2,444,611 3,055,763 3,819,704 4,774,630 5,968,288 20,062,997

2 Paddy 4,651,637 5,814,547 7,268,183 9,085,229 11,356,536 38,176,132

Total cost 7,096,248 8,870,310 11,087,888 13,859,859 17,324,824 58,239,129

5.5.Revenue projection of VAJURA FPCL

Rs in Lakhs
Sl Total
Particulars Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
No Amount
1 Groundnut 2,691,606 3,364,507 4,205,634 5,257,042 6,571,303 22,090,092

5 Paddy 4,984,035 6,230,044 7,787,555 9,734,443 12,168,054 40,904,131

Total Revenues 7,675,641 9,594,551 11,993,189 14,991,486 18,739,357 62,994,223

5.6.Unit wise Statement for Volume of Production/Sales/Profit of

VAJURA FPCL
Rs in Lakhs
Total
I Groundnut Oil Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Amoun
t
Vol. of 1 1 1 24 30 103,40

22
 prod/year 2,600 5,750 9,688 ,609 ,762 9
Cost of 2,243 2,80 3,504 4,380 5,476 18,408,
production ,005 3,756 ,695 ,869 ,086 410
20 25 31 39 49 1,654,5
Fixed costs 1,606 2,008 5,009 3,762 2,202 87
2,444 3,05 3,819 4,774 5,968 20,062,
Total costs ,611 5,763 ,704 ,630 ,288 997
Revenue from 2,691 3,36 4,205 5,257 6,571 22,090,
sales ,606 4,507 ,634 ,042 ,303 092
2,027,0
Net income 246,995 308,744 385,930 482,412 603,015 95
608,12
Tax 30% 74,098 92,623 115,779 144,724 180,905 9
1,418,9
Profit after Tax 172,896 216,121 270,151 337,688 422,111 67
Repayment of
Interest 4,688 4,688 4,688 4,688 4,688 23,438
1,395,5
Net Profit 168,209 211,433 265,463 333,001 417,423 29
Total
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Amoun
V Paddy t
Vol. of 1 1 1 19 24
prod/year 0,000 2,500 5,625 ,531 ,414 82,070
Cost of 4,450 5,56 6,953 8,691 10,864 36,521,
prodction ,031 2,539 ,174 ,467 ,334 546
20 25 31 39 49 1,654,5
Fixed costs 1,606 2,008 5,009 3,762 2,202 87
4,651 5,81 7,268 9,085 11,356 38,176,
Total costs ,637 4,547 ,183 ,229 ,536 132
Revenue from 4,984 6,23 7,787 9,734 12,168 40,904,
sales ,035 0,044 ,555 ,443 ,054 131
2,727,9
Net income 332,398 415,497 519,371 649,214 811,518 99
818,40
Tax 30% 99,719 124,649 155,811 194,764 243,455 0
1,909,5
Profit after Tax 232,678 290,848 363,560 454,450 568,063 99
Repayment of
Interest 9,375 9,375 9,375 9,375 9,375 46,875
1,862,7
Net Profit 223,303 281,473 354,185 445,075 558,688 24
6.8. ECONOMICS OF THE FIVE YEARS BUSINESS PLAN ( 2020 - 2025 )
23
The Financial indicators of the business plan are viable to roll out the activities in the
field. It indicates several ratios for analyzing the finance to calculate our self to sort out
financial problems. so it may help the VAJURA FPCL to go on a smooth way

7. BENEFITS OF VAJURA FPCL

7.1. Members level

a. Facilitating credit links for members livelihood

b. Anticipated Dividends to members as per the statement furnished in projected

profitable statement every year.

c. Capacity building in Agricultural Production Technology and governance of FIGs

as member/share holders and as director of FPO

d. Sustainable livelihood through income generation.

e. Withheld price of produces to the members and patronage bonus to

leading Business Members or FIGs will be furnished

F. Patronage Bonus for successful FIGs will be given

7.2 At FPCL Level :

g. Creating collective farming practices

h. Generating Aggregate Marketing

i. Identifying Potential Marketers/Processing Mills

j. Through the experiences we will move towards Value addition processes, product
branding in the name of FPCL.

k. Developing infrastructures for value addition.

l. Subsidiary enterprises identified and established

24
 m. Linkages with Financial Institutions, Industries and Government
Institutions

n. Sustainable growth every year.

8. RESULTS:
The project’s goal is ‘Up scaling of Business operations, nurturing the Farmers
Livelihood and the sustainability of the VAJURA FPCL,Narikudi Block, Virudhunagar
District’.

The Object of the project is set up a producer company and strengthen its operations so
as to make it viable and it addresses the livelihood concerns of the farmers while at the
same time contribute to the social development of the community.

The immediate outcomes of the project would be a producer company adequately

capacitated with human resources and infrastructure to commence business in the
competitive business. The indicators of success would be the financials of the company,
the number of members who do business with the company, the scale of business and
the 5 % of increase in the average price of farm produce at the hand of the producers.

The project would directly benefit 420 members and would indirectly benefit about 2000
people who are family members of the beneficiaries and also micro –entrepreneurs and
their family members who are into Agri enterprises. The producer company though a for
profit organization would be a social venture focusing much on the socio economic
development of the farm communities in general and the member’s households in
particular.

9. CONCLUSION
Thus, this financial plan proposal of VAJURA FPCL is feasible both in technically,
and socio-economically. For Financial viability is accessed and found fit based
on the bellow mentioned Financial Ratios.

25