Coconut Trees Plantation Project

 

 

Investment Required: Rs. 4.00 Cr

Summary of the Project:

1200 Coconut Trees are planted on this land and adjacent land is available to the extent of 10 acres. Now, funds are required for plantation of coconut trees in the remaining 10acres of land.

FAQ’s:-

a) Term and Conditions

Ans: Onetime payment of the money against the Joint Venture. The amount is considered to be Rs, 4.00 Crores. Against this payment the selling rights of the coconut to the tune of 75% of the produce will be with the investing partner. Presently there is approx 1200 coconut trees in 10 acres of land producing around 300 cocunut per tree per annum. Additional 1000 coconut trees are proposed to be planted in the remaining 10 acres.

b) Investment Pattern

Ans: One time investment of Rs. 4.00 cores to the land owner. as a guarantee the 10acres will be mortgaged to the investing partner.

c) Agreement period

Ans: Agreement period will be for a minimum period of 10 years. Though we can also consider higher period also.

d) Profit sharing ratio

Ans: 75% to the investor and 25% to the land owner. This is because the agriculturist is receiving the payment in advance.

e) Break Even ratio.

Ans: break-even period will be approx 5 years.

f) Local Consumer market details

Ans: presently they are selling in the local market which is collected by the buyer from their farms.

g) Selling agreement with any Retailer

Ans: Presently there are no agreements entered into with any retailers. No pending selling contracts/agreements.

h) Prior commitments and deals with any third party?

Ans: None as on date.

i) Property dispute if any?

Ans: No disputes are there in the land, however there is a small agricultural loan on the property, which can be cleared any time.

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