planBUSINESS PLAN
Silknet Agro

Introduction:
No other fabric has fascinated man so continuously over millennia as silk. It is royal in its splendor, exotic and sensuous in its radiance. An aura of luxury has always surrounded and still surrounds, cloths made of silk. No other fabric drapes more beautifully or flatters the body more than silk.
The present global scenario clearly indicates the enormous opportunities for the Indian Silk Industry. The need of the hour is to produce more silk with reduced cost of production to meet the growing demands of quality silk. Realising this, the Govt. of India is taking all out efforts to boost production in the country with the technical support from Japan
The Purpose of Business Plan:
The purpose of the Business plan is to help us acquire fund for the set-up of the Infrastructure, i.e. 1. Procurement of Mulberry Sampling 2. Constructing Cocoon Rearing Shed 3. Employ Laborers 4. Procurement of Coconut Sampling 5. Procurement and Laying of Drip Irrigation System 6. Construction of Water Tank for Irrigation 7. Office Room 8. Purchase of Tractor 9. Purchase of Electronic Branch Cutting Machine
THE COMPANY:
With the above background we the students of UNITEDWORLD School of Business, Hyderabad have decided to embark on the journey towards self reliance in the field of Sericulture.
We are called “Silknet”, an Agro firm into Moriculture, Silk Rearing and Marketing of Cocoons. We have acquired 10 Acres of Land for the Sericulture at TheniDist, of Tamilnadu.
In doing Moriculture, Silk Rearing and Marketing of Cocoons the primary revenue generation activity of the business will be selling of Cocoons.
Company Description
Logo: Our logo represents the Quality, Fineness, and commitment to value chain of Silk Industry.

Vision: Be a consistent provider of good quality of cocoons, to ensure finest quality of final output in the industry.
Mission: To be quality conscious, to be nature Friendly and Humility at our core
Objective: To become the biggest and most reliable supplier of Cocoons in India within a period of 5 years
Legal establishment: We are registered with local silk board which is 10 km from our farm, we have done test marketing in our partners farm for 150 Kgs of Cocoon.
Plans to initiate the company 1. Self Employment: 2. Asset Creation 3. Up briginging of farming society or Labor class 4. CSR (Allotment of funds from the 2nd year onwards)

PRODUCT ON OFFER | Revenue / Month for Apr 2012 | | Sl. No. | Particulars | Unit Measure | Units | Amt (Rs.) | Total Amt (Rs.) | 1 | Sale of Cocoon | Kgs | 555 | 180 | 99,900.00 | 2 | Sale of Wastage | Kgs | 100 | 10 | 1,000.00 | | Total | | | | 100,900.00 |

| Revenue / Month for Apr 2016 onwards | | Sl. No. | Particulars | Unit Measure | Units/month | Units/day | Amt (Rs.) | Total Amt (Rs.) | 1 | Sale of Cocoon | Kgs | 555 | 0 | 180 | 99,900.00 | 2 | Sale of Wastage | Kgs | 100 | 0 | 10 | 1,000.00 | 3 | Sale of Coconut | Nos | 150000 | 0 | 3 | 450,000.00 | 4 | Sale of Bamboo stics | Nos | 5500 | 250 | 25 | 137,500.00 | | Total | | | | | 688,400.00 |

Our Sericulture Activities
The larva of mulberry silk moth grows for about 20-23 days feeding mulberry leaves. The fully matured larva spins to protect itself just before the pupa stage, a cocoon out of the most expensive and purest of threads, silk.
Moriculture
Cultivation of mulberry plants is referred to as Moriculture. It is an agricultural activity.
Silkworm Rearing
Silkworm Rearing is considered to be an agro based cottage industry since it involves mulberry cultivation. Silkworms are reared for the production of “cocoons” which is the raw material for silk production. The farmers rear silkworms and produce cocoons. Silkworms are reared in well ventilated rearing shed following shoot rearing method.
Marketing of cocoons
The farmers can sell the cocoon produced by them in the nearest Govt. Cocoon Markets. In the cocoon markets reasonable floor price is fixed by scientific methods and the final selling price is decided in the open auction. Here, silk reelers buy the cocoons produced by the farmers for producing silk.
Coconut and Bamboo plantation
We will plant 1500 coconut sampling and 15000 Bamboo sampling which will start yielding after 3 years being a hybrid plantation

MARKETING ANALYSIS Marketing of cocoons: The farmers can sell the cocoon produced by them in the nearest Govt. Cocoon Markets. In the cocoon markets reasonable floor price is fixed by scientific methods and the final selling price is decided in the open auction. Here, silk reelers buy the cocoons produced by the farmers for producing silk.
INDUSTRY ANALYSIS:
Demand In India : app. 28000 M.T
Supply From India : app. 18000 M.T * There is a gap of around 10000 MT between supply and demand in India.
Porter's 5 forces for Sericulture:

Threat of New entrants:
In this Industry no need to worry about New entrants because there is a gap between demand and supply, all the players together are unable to meet the demand, and there is a huge demand in global market. If many players enter into the market new innovative methods will come up, it will help the industry to grow.
Threat of Substitutes:
There is no threat from any substitute for this Industry; nothing can replace the actual silk.

Bargaining power of Suppliers:
Raw material suppliers of eggs for are Government, so no need to worry about supply of raw material. Actually Government is encouraging and proving subsidies to new entrants.
Bargaining power of Buyers:
There is no threat from buyer bargaining power, because price is fixed by government through auction. And your price depends on your product quality.
Competitors:
No need to worry about competitors because demand is greater than the supply, you should compete with your own quality and industry is growing and we don’t have enough number of players in this Industry.
Industry attractiveness:
Industry is very attractive demand is greater than supply domestically as well as globally, and it will create employment in rural areas of India. And we can do it with low investment and get high returns, and we will get subsidies from government.
Customer base: 1. Domestic and global. 2. Silk reelers are the customers for cocoons. 3. Extraction of silk filament from cocoons by employing a set of processes is known as silk reeling. 4. The raw silks produced by the silk reelers are marketed directly to the weavers Customer needs: 1. Customer needs good quality of cocoons. 2. Silk reelers will buy the cocoons and after reeling they will produce raw silk. 3. They need variety of cocoons.

STRATEGY AND IMPLEMENTATION

Management responsibilities: 1. Planning to get good quality of cocoons. 2. Protecting eggs from hostile environment conditions. 3. Taking care of delivery of cocoons within the stipulated time to the Market. 4. Observing trends in Domestic and Global market. 5. Plan to grow mulberry trees in accordance with the cocoons. 6. Taking care about feeding and protecting from diseases.

MANAGEMENT TEAM

Name: Prithviraj Rajendran
Qualification: B.sc, PGDBA-Operations, PGPM-Marketing, MBA-HR
Experience – 8 years in transport and logistics and 2 years in sericulture farming
Designation: Managing Director
Roles & Responsibilities: Responsibility of conducting the Business in true and fair manner, in accordance with Vission, Mission and Objectives of the company and Govt. Policies.

Name: Balram Bommerla
Qualification: B.com, PGPM-Finance
Designation: Finance Manager
Roles & Responsibilities: Looking after the monthly cash flows and managing the cost & revenues.

Name: Sunil Kumar. G
Qualification: B.com, PGPM-Finance
Designation: Operation Manager
Roles & Responsibilities: Handling day to day Operations and manpower.

Name: Rajesh. P
Qualification: B.SC (MPCS), PGPM-Marketing
Designation: Marketing Manager
Roles & Responsibilities: Taking care of marketing activities for cocoons, Responsibility for delivery of cocoons to market with in time, Vendor Management and co-ordinating with Govt. Agencies.

Hierarchy

FINANCIAL ANALYSIS
Costing:
Sl. No. | Particulars | Measuring Unit | Unit | Unit Cost (Rs.) | Total Amount | Subsidy % | Subsidy Amt (Rs.) | | Capex | | | | | | | 1 | Land | Acres | 10 | 150,000.00 | 1,500,000.00 | | - | 2 | Tractor (Second Hand) | Nos. | 1 | 75,000.00 | 75,000.00 | | - | 3 | Cutting Machine | Nos. | 2 | 2,500.00 | 5,000.00 | | - | 4 | Water Tank 25000 Lit | Nos. | 2 | 90,000.00 | 180,000.00 | | - | 5 | Mulberry Sampling | Nos. | 49500 | 1.00 | 49,500.00 | 40% | 19,800.00 | 6 | Hybrid Coconut Sampling | Nos. | 1500 | 350.00 | 525,000.00 | | - | 7 | Bamboo Sampling | Nos. | 10000 | 10.00 | 100,000.00 | | - | 8 | Shed (1000 Sq. Ft.) | Nos. | 3 | 100,000.00 | 300,000.00 | 40% | 120,000.00 | 9 | Drip Irrigation System | Set | 9 | 20,000.00 | 180,000.00 | 75% | 135,000.00 | 10 | Office Room (450Sq.Ft.) | Nos. | 1 | 65,000.00 | 65,000.00 | | - | 11 | Rearing Racks – Eggs | Nos. | 10 | 250.00 | 2,500.00 | | - | 12 | Rearing Racks – Worm | Nos. | 10 | 500.00 | 5,000.00 | | - | 13 | Borewell (450Mtrs) | Nos. | 1 | 100,000.00 | 75,000.00 | | - | 14 | Water motar | Nos. | 1 | 15,000.00 | 15,000.00 | | | | Total | | | | 3,077,000.00 | | 274,800.00 | 15 | Capex after Subsidy | | | | 2,802,200.00 | | | | Operating Cost | | | | | | | 16 | Labour | Nos. | 4 | 5,000.00 | 20,000.00 | | | 17 | Kerosene | Ltrs. | 25 | 35.00 | 875.00 | | | 18 | Fertiliser – Natural | Per Acre | 8 | 600.00 | 1,600.00 | | | 19 | Fertiliser – Chemical | Per Acre | 9 | 2,000.00 | 6,000.00 | | | 20 | Tea and Snaks | Day | 30 | 100.00 | 3,000.00 | | | 21 | Weekend recreation | Day | 4 | 140.00 | 560.00 | | | 22 | Capex Apportioned | Months | 120 | 2,802,200.00 | 23,351.67 | | | | Total | | | | 55386.67 | | |

Profit & Loss Profit & Loss | Sl. No. | Particulars | Amt (Rs.) | 1 | Revenue | 100,900.00 | | Less | | 2 | Operating Cost | 32,035.00 | | Net Profit | 68,865.00 |

Sl.No | Year | Revenue | Profit | | | Rs. | Cumulative | Rs. | Cumulative | 1 | 2012-13 | 1,210,800.00 | 1,210,800.00 | 826,380.00 | 826,380.00 | 2 | 2013-14 | 1,210,800.00 | 2,421,600.00 | 826,380.00 | 1,652,760.00 | 3 | 2014-15 | 1,210,800.00 | 3,632,400.00 | 826,380.00 | 2,479,140.00 | 4 | 2015-16 | 8,860,800.00 | 12,493,200.00 | 8,717,580.00 | 11,196,720.00 | 5 | 2016-17 | 8,860,800.00 | 21,354,000.00 | 8,717,580.00 | 19,914,300.00 |

Cash Flow Statement Cash flow statement for the FY 2012-2013 | Cash Inflow | 1,210,800.00 | Cash Outflow | 384,420.00 | Net Cash flow | 826,380.00 |

Cash flow statement for the FY 2013-2014 | Cash Inflow | 1,210,800.00 | Cash Outflow | 384,420.00 | Net Cash flow | 826,380.00 |

Cash flow statement for the FY 2014-2015 | Cash Inflow | 1,210,800.00 | Cash Outflow | 384,420.00 | Net Cash flow | 826,380.00 |

Cash flow statement for the FY 2015-2016 | Cash Inflow | 8,860,800.00 | Cash Outflow | 143,220.00 | Net Cash flow | 8,717,580.00 |

Cash flow statement for the FY 2016-2017 | Cash Inflow | 8,860,800.00 | Cash Outflow | 143,220.00 | Net Cash flow | 8,717,580.00 |

Break Even period | Amount Investing | 2802200 | Net Cash flows per year | 826380 | Break Even period in Years | 3.4 |
BUSINESS SUSTANABILITY AND GROWTH
To ensure that our business is sustainable and growing 1. After 3 years we will expand sericulture business by two times. 2. From the 4th year every year we will diversify in to a new agribusiness, in the following order a) Goat Farm b) Poultry Farm c) Dairy Farm 3. Continuous investment will happen to expand our capacity in existing business i.e. a) Sericulture b) Coconut Farm c) Bamboo Farm

ENVIRONMENTAL IMPACT 1. We are a green company our business coexist with the environment and future, which helps in reducing a. Air Pollution b. Soil Pollution c. No water Wastage

1. We claim to achieve the above through the following ways d. 50% use of natural fertilizer e. Use of drip system for irrigation f. Plantation of Coconut trees and Bamboo samplings helps in observing air pollutants. g. Due to presence of shade of coconut tree, water absorption reduces intern reduces wastage of water. i. No wastage from the business ii. The outer shell of Coconut will be used for making rope

2. This will be sold and the money will be used for Education for buying books for the poor students every year h. The coconut leaves will be used for making mat for roofing and brooms i. These mats will be used to provide housing for poor people, Money earned by selling brooms will be used to feed homeless old people j. All though this could be used for earning by the business we are not doing so but are using this on Corporate Social Responsibility as follows iii. The outer shell of Coconut will be used for making rope iv. The coconut leaves will be used for making mat for roofing and brooms