Detailed Project Report: Setting Up A Food Park at Ranchi, Jharkhand

M/s AGRONOMICS FOOD PARK PVT. LTD.
Detailed Project Report
Submitted by Agronomics Food Park Private Limited
For
Setting up a Food Park at Ranchi, Jharkhand
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INDEX
CHAPTER PARTICULARS PAGE NO.

NO.
Project at a Glance
1 4-5
Executive Summary
2 5
Company Profile
3 7
Director’s Profile
4 8 - 15
Project Details
4.1 Project Overview
4.2 Services & revenue Portfolio
4.3 Project Background & Objectives
4.4 Key Objectives of AFPPL include
4.5 Need for a Mega Food Park in Jharkhand
4.6 Basic Enabling Infrastructure
4.7 Site Analysis
4.8 FDI in Food Processing Sector
4.9 Tax Benefit
4.10 The Indian Food Processing Industry - Status and

Significance
5 16
Statutory Clearance Status & Marketing Arrangement
6 16 - 19
Macro Economic Performance
6.1 Growth Drivers.
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6.2 Economic Overview
6.3 Infrastructure Overview

7 19 – 22
Project financial analysis
• Business plan
• Estimated Project Cost
• Means of Finance
• Term Loan Repayment Schedule
• Employee Cost
• Cost of Maintenance
• Cost of Insurance
• Admin Overheads
8 22 – 23
Financial Assumptions
9 23 – 25
Revenue Assumptions
• Demand Assessment and Marketing Strategy
• Project Impact
10 26
SWOT ANALYSIS
11 27 – 28
RISK ANALYSIS
12 29
CONCLUSION & RECOMMENDATION
13 29
Layout map of project
14 30
Location map of project site
15 31
Google image of 10 km radius of project site
16 32
Topo map of project site 10 km radius
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Executive Summary
Name of the Company AGRONOMICS FOOD PARK PRIVATE LIMITED (AFPPL)
Date of Incorporation 28/09/2016
Constitution Private Limited
CIN No. U15400JH2016PTC009175
Name of the Project Greenfield Project
Type of Industry Infra Sector
Sector Service (FoodPark)

Building a food park infrastructure for the agro
Nature of activity
processing industry
Space No. 401, 4th Floor , Samriddhi Square, Kishoreganj
Registered Office
Chowk, Ranchi, Jharkhand – 834001
1. Mr. MAHESH KUMAR AGARWAL
Board of Directors
2. Mrs. NEHA SARAWGI
Key Personnel Mr. MAHESH KUMAR AGARWAL
The promoters have proposed to set up a food
processing park in an area of 22.85 acres consisting of
Processing cum warehouse units, Silos which will be given
on Lease/rent to the food processors. Out of these
12acres of land will be sold to food processors and
Brief particulars of the
revenue will be collected from them for maintenance
project
charges and the company will also provide ancillary
services to them. The project will be equipped with
modern facilities and technologies like waste
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management & energy. The project is proposed to be set
up at KHUNTI district situated in Jharkhand state.
Estimated Project Cost Rs. 2000 Lacs
Proposed Term Loan Rs. 1450 Lacs
Promoter’s Contribution. Rs. 550 Lacs

Power & Fuel Power & fuel will be sourced from Jharkhand State
Electricity Board
Manpower Manpower will be available locally
Techno-Economic The project is considered technically feasible and

Viability economically viable.
COMPANY PROFILE
Agronomics Food Park Pvt. Ltd. (AFPPL), is a Private Limited Company incorporated on
28.09.2016 having its registered office at Space No. 401, 4th Floor, Samriddhi Square,
Kishoreganj Chowk, Ranchi, Jharkhand – 834001. Mr. MAHESH KUMAR AGARWAL
and Mrs. NEHA SARAWGI are the directors of the company.
The Scheme of Food Park aims at providing a mechanism to link agricultural production
to the market by bringing together farmers, processors and retailers so as to ensure
maximizing value addition, minimizing wastage, increasing farmers’ income and creating
employment opportunities particularly in rural sector. The Food Park Scheme is based on
“Cluster” approach and envisages a well-defined agree/ horticultural-processing zone
containing other facilities with support infrastructure.
The company proposes to set up a food park which will have various support
infrastructures needed for setting up Processing centers which will be leased/rented to
food processors and play role of service provider for its core and other ancillary services.
In addition to this the company also proposes to sale 8 acres to land to other prospective
units for which company will collect maintenance charge for providing infrastructure and
supporting services. In addition, it also intends to facilitate development of other food
park in future at eastern region of India. The proposed Food Park is, thus, envisaged to
play larger role in the development of food processing sector in eastern India.
With a view to promote investment in Food Park, Ministry of Finance has covered Food
Park including Food Park under Infrastructure category. 8 Mega Food Parks namely
Patanjali Food and Herbal Park, Haridwar, Srini Food Park, Chittoor, North East Mega Food
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Park, Nalbari, International Mega Food Park, Fazilka, Integrated Food Park, Tumkur,
Jharkhand Mega Food Park, Ranchi, Indus Mega Food Park, Khargoan and Jangipur
Bengal Mega Food Park, Murshidabad are functional as on 31.05.2016.
The food processing industry constitutes three kinds of processors:
• Primary Processors: Primary industries process raw foods (example Paddy into Rice)
• Secondary processors: Use primary products to manufacture other foods
(example Rice Bran into Solvent)
• Tertiary Processors: Prepare convenience foods such as frozen dinners and
canned food, animal feed
More so, the Group has a strategic focus for spreading its operations in Jharkhand in view
of an ambient and favorable economic scenario in State, an emerging consumption
market and increased focus of the State Govt. towards food processing sector. The
Group intends to leverage the Schemes and various fiscal incentives being provided by
State Govt. for new initiatives in food processing sector.
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DIRECTOR’S PROFILE
Mr. Mahesh Kumar Agarwal, director of the AFPPL has very rich experience in food
processing sector. He has been contributing to this sector since 25 Years. He is the man
behind the conception of idea of Food Park. He is a businessman with a difference, like
difference in handling situations, marketplace, addressing clients etc.
1. Mr. MAHESH KUMAR AGARWAL

Name Mr. MAHESH KUMAR AGARWAL
Father’s Name Late Ramotar Agarwal
Age 46yrs
Panchwati, Flat-404, Basant vihar, Kanke Road, Ranchi –
Present Address
834008
Qualification Graduate
PAN ACYPA9753C
Net Worth 1.06 Cr
Experience 25 Years
Mrs. Neha Sarawgi, director of the AFPPL and has rich experience. An MBA graduate with
a vision of success and passion to achieve it. He has contributed to the different sectors
in various capacities based on the requisite synergies for setting up the food park. A
young, energetic and dynamic person with expertise in accountancy and being a self
motivational his carving for success in endless.
2. Mrs. NEHA SARAWGI

Name Mrs. NEHA SARAWGI
Father’s Name Mr. SURESH KUMAR SARAWGI

Age 32 yrs
Gunjan, Shivaji Park Near Hehal Post Office Ratu Road,
Present Address
anchi – 834005 Jharkhand.
Qualification MBA
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PAN AGRPS4427Q
Net Worth 0.21 Cr

Experience 13 YEARS
PROJECT DETAILS
4.1 PROJECT OVERVIEW
Company will provide all amenities & Facilities related to food processing to the
processing units for which company will charge rent & maintenance charge. The
total cost of Land & land development along with civil.
Proposed land area is sufficient for proposed project with modern sewerage
facility, ETP, Boiler Room, Civil structure and other amenities. The estimated cost of
plant and machineries, utilities and civil structure has been taken on the
conservative basis which is reasonable.
The company has identified the food processing units. Further the promoters have
very good link with other business player of food industry and experience in
proposed project hence the company will easily get the service receivers from the
initial stage of the project.
The revenue model of company which consist mainly rent and maintenance
charges to users is reasonable according to mass practice.
The manpower required for the proposed food park will be 16 No. Including
Manager, Accountant, Supervisor and other support staff.
4.2 SERVICE & REVENUE PORTFOLIO
Company proposes to set up warehousing cum storage facility which will be given
on rent to the users. This will be one of the primary sources of revenue generation
for the company.
Maintenance charges received from the user of warehouse and food processors
is one of the core revenue generate source of company.
Company will also generate revenue from their noncore facilities like canteen
charge, guest house charges and other facility charge.
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The company has already got the offer from food processors to set up their plant
and the company has agreed to set up one rice mill.
Along with the existing client, promoters of the company are also in contact with
other food processors who are interested to set up their processing centre by
taking lease on the proposed unit.
SALES 35 SERVICE
INDUSTRY ACRES SQ FT LAC/ACRE 10/SQFT/MONTH SERVICE YEARLY
FOOD
PARK 3.49 1,51,807
RICE MILL 2.73 1,19,006 95,62,000 12,55,513 1,50,66,160
SOLVENT 2.5 1,08,813 87,43,000 11,47,977 1,37,75,726
FISH FEED 1.25 54,406 43,71,500 5,73,983 68,87,800
CASHEW 0.66 28,575 22,96,000 3,01,466 36,17,595
ALMONDS 0.51 22,303 17,92,000 2,35,297 28,23,560
11.13 4,84,910 2,67,64,500 35,14,237 4,21,70,840
4.3 Project Background & Objectives

Agronomics Food Park Private Limited is incorporated to leverage their experience and
knowledge to expand its horizon and play a larger role in infrastructure development in
food processing sector.
Scope of the food processing industry in India is still at a nascent stage. As far as common
infrastructure facility and support to the food processing sector is concerned, the country
has a long way to go. AFPPL may be considered one amongst a few food park in Eastern
India, with proven ability and knowledge to develop and operate common infrastructure
under the concept of a Mega Food Park Project. The Promoter has also vast experience
in international trade & manufacturing of these products also.
AFPPL has taken strategic interest in Food Park Project in Jharkhand since the eastern
part of the country has immense potential in terms of crops and varieties specially. In
addition, it is also keen to expand and diversify its business in the related industries.
The promoters have rich experience in food processing and have good relations with the
producers of food products which would be suitably leveraged by the project post
implementation and during commercial operations.
The presence of these two lead promoters would lead to following benefits:
1. They are able to leverage each other’s respective strengths, create, manage
and mentor such businesses with the resources available.
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2. In addition to Govt’s grant, the lead promoters of AFPPL would bring in the
requisite equity contribution to ensure timely completion of the project
3. All key stakeholders with their prominence in their respective fields are aware that
the concept of Food Park has the potential of changing the food processing
scenario in the Eastern zone.
4. The projected profitability of the Project is also good and therefore the promoters
are likely to yield good dividends / returns in subsequent years of operations.
The Food Parks Scheme is the flagship program of the Ministry of Food Processing
Industries. The MFPS envisages a cluster-based approach for proposed Food Park.
The main objective of the Company is to provide modern infra facilities and other related
ancillary services to the food processors and charge rent & maintenance expenses which
can be considered as a minimal risk business module.
The promoters of AFPPL bring together vast experience of food processing, organized
retailing and infrastructure development. The promoters have belief that setting up such
infrastructure facility, under the mega food parks Scheme, would be economically viable
and would provide a unique opportunity to various stakeholders across the food value
chain to inclusively create value. Hence AFPPL is formed to provide a total infrastructure
solution for food processors.
4.4 Key Objectives of AFPPL include
• To create integrated modern infrastructure leading to an ideal eco system to

facilitate diverse food processing operations and encourage entrepreneurship in
food processing in the region.
• To create state of the art enabling infrastructure in the spirit of an industrial park
model.
• To create significant direct employment opportunities in the zone of influence of
the project.
The project will contribute towards the food processing industry in the region through:
• Ensuring low operating cost for the units present in the park through clustering and
sharing of infrastructure thus enhancing economies of scale
• Reducing post-harvest losses for the farmers in the region through creation of
infrastructure.
• Facilitating ease of linkage between farmers and operators through farm
proximate infrastructure
With all these aspects, the project is expected to transform the rural landscape of a large
part of Jharkhand and play a vital role in changing agriculture sector in the state.
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4.5 Need for a Food Park in Jharkhand
Jharkhand is a major producer of many Cereals like Paddy , fruits and vegetables. It
occupies one of the highest positions in vegetable production and fruits production in
the country. Despite leadership in fruit and vegetable production, the state lags behind
in industrial development in the areas of food processing and related industries. Lack of
adequate storage facilities in the State have led to high wastages of agro horticultural
produce.
In an effort to address the issues at hand, the State Govt. has also initiated several
measures to promote agricultural growth, most important of which is formulation of
separate policies and Schemes to promote investments in food processing sector and
related infra sector. Such efforts have started yielding positive results. All these efforts
have set up the tone for agriculture led development in the State and the project would
play a vital role in changing the agricultural and food processing landscape in the region
at large and the State as a whole.
4.6Basic Enabling Infrastructure
Following are the components of basic enabling infrastructure proposed in the park:
• Bituminous roads/Pavers and foot paths.

• Site development, compound wall and gate complex.
• Common parking facility.
• Water treatment plant and supply system.
• Storm water drains and sewerage collection network.
• Effluent & Sewerage treatment plant.
• Recycle water system.
• Electrical substation and Internal Electrical distribution system.
• Internal Communication network.
• Street lighting.
• Fire fighting system and security.
• Security system
• Steam and air generation
• Silos
• Warehouse
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4.7 Site Analysis
A. Master Plan for the Park (Planning Concept)
i. The total site area is 22.85 acres, within which the park is to be set up
ii. The concept of the proposed Food Park is derived based on the requirements
of the entrepreneurs, functionality with self-contained facilities. The Food Park
shall be environment friendly facility comprising of physical and common
infrastructure components interwoven with green spaces. The master plan has
been conceptualized considering the opportunities and constraints of the site.
iii. The concept is guided by the applicable development guidelines of the Local
Municipal Policy. The design philosophy revolves around prioritizing various
aspects viz., circulation, land suitability, environmental sustainability and
topography to optimize various land uses.
iv. The master plan is based on modern planning concepts of providing good and
efficient internal movement with supporting infrastructure and facilities in an
aesthetic environment. The concept is to maintain a favorable orientation
which shall provide good functionality to all the components of the Food Park.
Provisions of prudent engineering practice have been followed in preparing
the Master Plan.
B. Site Development, Boundary Wall and Gate House

(i) Development of ground including site grading is a prerequisite for starting
of any construction activity at site. Site preparation shall consist of cutting,
removing and disposing of all materials such as bushes, shrubs, stumps,
roots, grass, weeds, top organic soil, rubbish etc., from the area of works so
that the sub base on which the infrastructure is developed is well prepared
for site grading works. The task shall include necessary excavation,
handling, salvaging, and disposal of cleared materials etc. Site grading will
include cutting, filling and compacting. The filled-up earth so as to integrate
the micro drainage pattern of the site to the proposed storm water
drainage system.
(ii) It is proposed to demarcate the entire site of the Park by providing an
aesthetically designed and structurally safe boundary wall. The site shall be
accessible by a Gate House structure with entry/exits and a security office.
(iii) Estimated Cost for the purpose of estimating the block costs, CPWD norms
for quantities and prevalent market rates have been assumed.
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C. Water Supply System & Fire Fighting
The water requirement is calculated based on the requirement for the processing
and domestic usage. The source of water in mainly from the proposed bore wells
located within the park premises.
D. Effluent and Sewage Conveyance & Treatment System
An underground sewerage network has been designed to collect sewage from

each plot and convey it to a sewage treatment plant. At the STP, the sewage
would be treated to acceptable standards and the treated sewage could be used
for sparing purpose within the park. Layout of the proposed sewerage network is
presented in the DPR. Bleaching powder doses will be used for chlorination before
disposal of the treated sewage. It is proposed that treated sewage will be used to
the extent possible for landscaping and flushing of toilets.
E. Estimated Cost of power supply
Based on the power demand calculations, the cost estimates for electrical
transmission and distribution network and street lighting is calculated.
F. Telecommunication Infrastructure
Success of modern day business depends upon communication infrastructure.

Internet connectivity through broadband connection, close circuit video network
are some of the likely requirements of the proposed park.
National Mission on Food Processing (NMFP):
This was launched in 12th Five Year Plan. Approved by the cabinet committee in August
2012, NMFP is expected to be implemented along with State Government cooperation.
One of the main objectives of NMFP is the decentralization in the implementation of
schemes in the sector, leading to greater involvement of State Government / Union
territories. The main aim of this scheme to provide the adequate facilities to food
processors and infra developers by which these sectors can growth as per government
plan.
4.8. FDI in Food Processing Sector:
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Government has permitted up to 100% FDI under automatic route in all processed food
segment except for items reserved for Micro and Small Enterprises (MSEs). FDI in food
processing sector increased at a CAGR of 60% over the period FY 2009-13. However, FY
2014 reported significant increase in FDI amounting to INR 251 Bn on account of huge
investments announced by MNCs such PepsiCo India Holdings Pvt. Ltd, Cadbury India
and Nestle India Ltd which are engaged in food processing sector. INR 31.65 Bn was
invested in the sector as FDI during FY 2015.
Due to above government initiatives there is huge demand of food processing centre,
since Jharkhand is the state which has significant share in total food production in India.
There is huge investment has already came therefore the proposed project has no need
to wait for the service receiver, so there is huge chances to make good percentage of
profit.
The Indian Food Processing Industry Size (US$ Bn)

450 400
400
CAGR 10%
350
300
250 200
200
150
75 82 90
100 62 68
50
0
2005 2006 2007 2008 2009 2015 2020 (P)
4.9 Tax Benefit:
Various incentives are provided to FPI under income tax and service tax. Under Section
35-AD of the Income tax Act1961, deduction of 150% of investment is allowed for setting
up and operating warehousing facility for storage of agricultural produce.
4.10The Indian Food Processing Industry - Status and Significance
Despite having several advantages, the level of food processing across various segments
is very low in India which means that India accounts for only 1.5% of the global processed
food trade. High growth in consumption of processed food products has increased the
demand for all ancillary products and services associated with the sector. Consequently,
demand for preservatives, food chemicals, flavor enhancers, food packaging materials,
and logistics services have gone up. This has also benefitted the Food park industry by
providing the infra facilities to these types of manufacturer.
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Indian Food Processing: Share of

Segments
Beverages,
12% Fruits and
Meat, Poultry Vegetable,
& Marine, 4%
14%
Dairy, 16% Grain &
Cereals, 54%
5. STATUTORY CLERANCES & MARKETING ARRANGEMENTS
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Details of important approval and clearances for the proposed project are given below:
Sl.No. Statutory document/authority Status
1 Pollution Clearance Certificate Applied
2 GST registration 20AAOCA7960N1Z8
3 Electricity Connection Applied
4 Factory License Applied
5 Weight & Measurement Applied
6 Boiler Installation Applied
6. Macro Economic Performance
The Indian economy continued to demonstrate resilience in FY 2015. Formation of stable

government and initiation of several reforms circulated strong signals to global and
domestic investors regarding the government’s effort to place the domestic economy
back on the growth trajectory. These included structural reform measures such as
overhauling of archaic laws, passage of long awaited major bills, relaxation in FDI rules,
targeted and cashless transfer of subsidies and revival of large stalled projects which
helped in boosting investor’s confidence. During FY 2015, major economic indicators
such as GDP growth, Index of Industrial Production, exchange rate, inflation, current
account, FII, and FDI inflows indicated an improvement.
6.1 Growth Drivers.
The key factors aiding in the fast growth of the industry are: large share in the world’s
agricultural output, diverse agro-climatic regions & soil types, changing demographic
patterns, living conditions & food habits, increasing incomes & food consumption and
various government initiatives.
India has 52% cultivable land compared to a world average of 11%. It has all 15 major
climate types that exist in the world and 46 of the total 60 soil types exist in the country. It
also has 20 agro-climatic regions. All these factors make India a prime sourcing
destination for various segments in the food processing and infra industry.
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India, with a population of 1.31 billion people, is the second largest country in the world
in terms of population which in turn translates into one of the largest consumer markets
in the world. Also, more than 60% of the Indian population is below the age of 30 years
making it a young country with a large earning segment in the total population.
Increasing disposable
incomes and spending
on Food products
Increasing Urbanisation Advantage India in

and Changing Lifestyles- terms of Production of
More Nuclear Families, various commodities,
Working women etc human resources etc
Food Processing
Demand Drivers
Changing
Demand for Functional
demographics- more
Foods/ Nutraceuticals
young population
Growth of Organised
Retail and Private Label
Penetration
Apart from the above favourable factors, there are a host of other factors like changing
lifestyles, more nuclear families and increased health consciousness which are increasing
the demand for processed foods.
Government Initiatives
Keeping in mind the importance this industry holds in terms of reducing wastage and
making appropriate use of the huge supply of natural resources. The central theme of
the 12th Plan has been the decentralization of MoFPI’s initiatives with an aim at making
food processing industry a truly national initiative and ensuring maximum participation
from State Governments. To conclude, it has been observed that the Govt. and its efforts
have been proactive so as to ensure faster growth of the sector.
Demand Assessment and Marketing Strategy
India’s economic growth has accelerated in the last two decades. This has led to a surge
in the spending power of the consumers. Based on the rise in income levels, the shape of
the country’s income pyramid is changing dramatically on account of fattening of a
burgeoning middle income class. It is estimated that India’s middle class will swell by over
ten times from its current size of 50 million to 583 million by 2025. With positive changes in
incomes levels, the expenditure pattern is also witnessing paradigm shift. Food and
beverages today alone contributes about 40-45 percent of monthly private consumption
expenditure (Source: NSSO). With the rising convenience needs of dual income families,
the demand for processed food products is also growing.
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Indian food-processing sector is also undergoing rapid transformation. As a country
moves on the path of development, agricultural sector evolves from traditional
subsistence level farming to commercial agriculture producing high value and processed
products. Strong macroeconomic fundamentals (sustained economic growth rate of 8
%) and the changing socio-economic scene are driving what was once a traditional,
small-scale processed food production system into a modern industry aimed at catering
to the evolving tastes and needs of discerning consumers. The robust growth in economy
and favorable changes in demographics has spurred the evolution of retail. The growth
of retail which so far is largely limited to metro and tier I cities is now gradually entering in
tier II cities.
6.2Economic Overview
The state is largely agrarian and rural with almost 80 percent of the total population
depending on and engaged in agricultural activities. Agriculture still remains the
backbone of the state economy even as industry sector (specially food processing) and
services sector have made good progress in recent years. Recently, Jharkhand state GDP
has recorded a very high growth (in the excess of 10%), making Jharkhand the fastest
growing major state of India. Key economic indicators for the state are given below.
State Overview
Jharkhand is located in the eastern part of India. It lies midway between West Bengal in
the east and Chhattisgarh in the west, Bihar in the north and Orissa in the south.The state
of Jharkhand has an area of 79,714 sq. km. and a population of 26.9 million. There are 24
districts, 211 blocks and 32615 villages. The State has population density of 338 per sq. km.
(as against the national average of 312). The population of the state continues to grow
at a much faster rate than the national rate.
6.3 Infrastructure Overview
All major cities and towns are well connected in the state through road, railways and
airports. Jharkhand is well connected by air with the major metro cities of India and some
other major capitals of the world. It has two domestic airports at Ranchi (Birsa Munda
Airport) and at Jamshedpur (Sonari Airport) which is maintained by Tata Steel Company.
The growth of power sector in rural area of Jharkhand has been very limited; the per
capita energy consumption in Jharkhand is still stands at very low, in comparison to the
national average of 813 units. During last six years, the demand for electricity has grown
at an annual rate of about 8 percent. However, the power supply position has been
increase in recent years.
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7. Project Financial Analysis
Business plan
The business plan of AFPPL has been prepared taking into account the proposed business
model in line with the Food Parks Scheme:
• Company would provide developed land plots and SDF sheds to various units in
the park on Rent/Lease.
• The project will provide Processing unit facility to Food Processors and various
players such as grain traders. The project will generate revenue by charging rental
and service/maintenance charge from the users.
• Company would also be supplying power and treated water to units and would
also recover the cost of effluent treatment from the units.
• Non-core facilities would also be givens on rental basis to various users by the
Company.
• The entire project cost will be as mentioned in table.
Estimated Project Cost

S.NO PARTICULARS AMOUNT AMOHNT
PLANT & MACHINERY 3,33,80,000

1 Weight Bridge & Foundation 24,50,000
2 Air Compressor 75 HP WITH PIPELINE 16,30,000
3 R.O water softner 9,00,000
4 Boiler 2,10,00,000
5 ETP & ETP room 34,00,000
6 Deep Borewell, Casing 40,00,000
WAREHOUSE 10,35,00,000
7 Silos 10,54,394 USD CIF KOL 7,15,00,000
8 Primary Processing Centre, Warehouse 3,20,00,000
ELECTRICAL MACHINERIES 3,01,00,000
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9 Safety & Security 17,00,000
10 DG 34,00,000
11 Transformer With Servo & Room 30,00,000
12 Sub station & Electricity control room 2,20,00,000
CIVIL 3,20,35,000
13 Sewerage System 25,35,000
14 Supply network 20,00,000
15 Water Tank 30,00,000
16 Chimney 25,00,000
17 Rain Harvesting 15,00,000
18 Pavers, PCC 50,00,000
19 Approach Road 25,00,000
20 Land Development 25,00,000
21 Boundary Works 25,00,000
22 Administrative Building 20,00,000
23 Labour Qtr Building 20,00,000
24 Kitchen & Store & Mess 15,00,000
25 Rest Room, Bath 5,00,000
26 Staff Residence Building 10,00,000
27 Admin Residence 10,00,000
OTHERS 30,00,000
28 Office Computer + Equipments 10,00,000
29 Tractors + Trolley 10,00,000
30 Commercial Vehicle 10,00,000
TOTAL 20,00,15,000
Means of Finance
The project is proposed to be financed through equity and term loan from Bank. The
promoters would contribute about 35% of the cost of project.
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Means of Finance
Total MOF (in % to Total
Sl. No Particulars
Lacs) MOF
1 Term Loan 1450.00 72.5%
2 Promoters Contribution 550.00 27.5%
3 Total 2000.00 100%
4 Debt Equity 2.64:1
Term Loan Repayment Schedule

The entire term loan of Rs. 1450.00 Lacs is proposed to be repaid in 32 quarterly instalments
commencing from Quarter Dec 2019 and concluding on Quarter Sept 2027. The
implementation for the project will be 18 months including moratorium period to
streamline the augmentation of cash flows.
Loan Repayment Schedule - Annexed
Employee Cost
The employee cost has been assessed on the basis of organizational structure proposed
by company, which takes into account the managerial and the support staff required
for operating the warehouses and other ancillary services.
Admin Overheads
It includes cost towards travelling, business development, and stationary and to meet
day to day administrative expenses.
8. Financial Assumptions
Taxes
The income tax has been taken @ 33.06% as per the prevailing rate of income tax for
corporate/industry players. The Minimum Alternate Tax (MAT) rate is taken as 18.5% as per
the prevailing rate plus Surcharge.
Depreciation Rates
Depreciation has been calculated using WDV method. The rate of depreciation for plant
& machinery, Misc fixed assets, buildings and enabling infrastructure has been charged
as per schedule-III of companies Act 2013.
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Interest
Interest has been calculated @ 11.50% per annum for term Loan. The repayment period
has been kept at 32quarterly installments excluding the moratorium period till March-
19(12 months from COD).
9. Revenue Assumptions
Core Processing Infrastructure:
2.1 Revenue from Leasing of processing unit:
The developed land and processing centre would be offered to units in the CPC on long
term lease rentals and maintenance charges.
SALES 35 SERVICE
INDUSTRY ACRES SQ FT LAC/ACRE 10/SQFT/MONTH SERVICE YEARLY
FOOD
PARK 3.49 1,51,807
RICE MILL 2.73 1,19,006 95,62,000 12,55,513 1,50,66,160
SOLVENT 2.5 1,08,813 87,43,000 11,47,977 1,37,75,726
FISH FEED 1.25 54,406 43,71,500 5,73,983 68,87,800
CASHEW 0.66 28,575 22,96,000 3,01,466 36,17,595
ALMONDS 0.51 22,303 17,92,000 2,35,297 28,23,560
11.13 4,84,910 2,67,64,500 35,14,237 4,21,70,840
Effluent treatment charge.
The Food Park would be providing Common Effluent Treatment Plant (CETP) for treatment
of effluent discharged by units and core processing facilities. The treatment charges
would be recovered along with maintenance charge. The company would recover the
treatment charges as per pre-decided agreement with the units.
Infrastructure management/maintenance Fee
The company would be managing (management, maintenance, security, insurance

etc.) the entire common infrastructure provided in the park. For these services the
company would collect an infrastructure management fee from the units based on the
area allotted to individual unit. The management fee would be a percentage of value
of total common infrastructure managed by company.
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Key Factors Driving Demand for Processed Food
Clearly, the food processing industry is on the threshold of a demand led vertical growth
in the Country. This may be primarily attributed to the strong macro-economic
fundamentals and the changing socio-economic and demographic scenario not just of
the country but also that of Jharkhand. Some of the key demand drivers for processed
food include:
Project Impact
The development impacts are generally evaluated in terms of changes in community

demographics, employment and income, public services, and aesthetic qualities of the
community. Qualitative assessment of community perceptions about development is an
equally important measure of development impacts. Assessing proposed developments
in a socio-economic context will help community leaders, residents and policy makers to
identify potential social equity issues, evaluate the adequacy of social services and
determine how the project will affect overall social well-being.
It is envisaged that the proposed mega food park project will generate tremendous
socio-economic benefits to the people of the region and number of skilled and unskilled
local workers will be employed. This will generate direct and indirect employment to
persons and facilitate development of social support facilities such as medical,
educational and transportation facilities.
Projected Social and Economic Impact of the Project
The proposed mega food park at Ranchi in Jharkhand will have a number of impacts on
existing social and economic status of the region as a whole. Setting up of Food Park will
have following positive effects in the cluster and the region and the State at large:
a) Impact on Agriculture and Horticulture: There will be direct impact of food park on
the Agriculture & Horticulture sector of cluster areas where the growers would
fetch better prices for their produce thus eventually get bigger pie of the
consumer rupee. This is expected to result in increased price realization of for the
producers of this region.
b) Reduction in Wastage: Food park will play a crucial role in enhancing the level of
processing in the region by making available better technology, skilled
manpower, streamlining the supply chain and strong forward linkages. It is
23 | P a g e
estimated that reduction in wastage across value chain will result in significant
increase in value realization to the producers in the zone of influence.
c) Alternate market channel for the farmers: The food park will handle considerable
volumes of fruits & vegetables and grains sourced from the catchment area. This
will eventually become an alternate marketing channel for the farmers for selling
their produce. This processing facility would also stabilize the prices of perishable
commodities in this region as a whole.
d) Better Infrastructure & Living Condition: The setting of this project would ensure new
transportation facilities, water supply facilities and medical facilities being setup in
these regions. Need to bring in the raw construction material will ensure better
roads right from the beginning. Thus the project is expected to improve the
infrastructural facilities and socio economic condition of the people in the region.
e) Contract and Supply Opportunities for Local Population: Local entrepreneurs will
be provided with an opportunity to take up various contracts in the development
of the park. Also the labour force that will be needed in the beginning of the
project can be derived from the local population. Moreover, the farmers in the
surrounding area will also act as supplier of Raw material to the food processors in
Food Park for processing.
f) Entrepreneurial activities: Establishment of Food Park will result in development

of various ancillary businesses apart from the core business. This will promote entry
of new entrepreneurs in the whole business gamut.
24 | P a g e
SWOT ANALYSIS
STRENGTHS WEAKNESSES
The Food Park is proposed to be located in Value addition to the raw produce in the
Ranchi, Jharkhand which is endowed with Ranchi region is very low.
adequate infrastructural facilities in terms of
Lack of a common policy on contract
connectivity, availability of raw material,
farming.
power, water, etc.
Ranchi has diverse agro-climatic conditions; Lack of farming technique which could
it has a wide-ranging and large raw material make the negative impact on
base suitable for food processing industries. production
Ranchi’s comparatively cheaper workforce

can be effectively utilized to setup large
number of low cost production bases for
domestic and export markets.
Cheaper cost of raw materials provides

synergies to the food processors.
OPPORTUNITY THREAT
The growth potential of this sector is The major threat in the food-processing
enormous and it is expected that food sector is lack of awareness of the
production will double in the next ten years importance of indigenous products due
and consumption of value added products to lack of knowledge.
will grow at fast pace.
Small and marginal entrepreneurs are
Economic liberalization and rising consumer facing threat from big multinational
prosperity is opening up new opportunities brands.
for diversification in food processing sector.
Economic recession or decline in GDP
State Government & central government growth could impact the sector along
have initiated various new projects to boost
with other sectors.
this sector.
25 | P a g e
RISK ANALYSIS AND MITIGATION MEASURES
Key Risks Risk carrier Proposed Mitigation of Risk
Experience & AFPPL The promoter directors although do not have much
Capability experience in service industry, they hail from
experienced business group and have the acumen for
running business successfully.
Time Over Run AFPPL The planned implementation period of 13 months from
Risk the financial closure is adequate for the
implementation of the project as per the
implementation schedule.
Hence, the risk of time overrun is low.
Infrastructure Risk AFPPL The land for the project is in the process of acquiring in
the company’s name.
Power requirement will be met from the state

electricity Board
The water requirement for the project is large. The

Company will be meeting its water requirement by
drawing ground water. It will be advisable for the
company to make arrangements for uninterrupted
supply of water by linking up with a perennial source
like river.
Skilled and unskilled labours will be available locally.
The infrastructure risk is therefore reckoned as Medium.

Cost Over Run AFPPL The project cost has been arrived at after obtaining
Risk quotations for different items of machinery and also
considering the reputation of the machinery suppliers.
Adequate contingency has also been considered to
cover any risk of cost escalation.
Thus, cost overrun risk over and above the
contingency provided is low.
However, in case of any cost overrun the promoters
shall infuse the requisite funds.
Statutory AFPPL Necessary approvals required for commencement of
operation for the proposed project are expected to
Approvals
be received in time; any delay in approvals will result
in time overrun.
26 | P a g e
Hence the risk in respect of statutory approvals is
medium
Government AFPPL The project comes under the Infra sector in food
policies processing industry which are actively encouraged by
the Central and State Government through a host of
incentives, concessions etc.
Hence the risk under this category is minimal.
Off- take/Demand AFPPL The Company’s proposed plan to provide services has
Risk huge requirement in this region. As such there is good
market potential for the products.
Hence the risk under this category is minimal.
Funding Risk AFPPL The Greenfield project is to be funded by term loan
and promoters contribution. All the funds required for
the project need to be tied up.
Lenders may validate the capability of the promoters
to bring in the requisite funds for the project.
Pricing level and AFPPL Though the prices of the service provided by the
sustainability of company is taken on conservative basis. The company
margin proposes to set up food park and collect the revenue
from food processors as rental charges and
maintenance charges.
Hence, the risk of price level and sustainability of
margin is medium.
Competition Risk AFPPL The company would be facing competition from some
small and medium scale players in the market. Thus,
the Company needs to ensure that they are able to
offer all ancillary facility to the processors under one
roof at attractive terms and enter into long term
contracts with them without undermining the margins
of the Company.
Hence, the competition risk is medium.
Force Majeure AFPPL The lenders may insist upon the company to take
adequate insurance cover for insurable Force Majeure
risks.
27 | P a g e
CONCLUSION
The Agronomics Food ParkPvt Ltd. (AFPPL) at RANCHI (Jharkhand) will provide the
required impulsion to the region to enable it to emerge as a major processing hub for
horticultural and agricultural produce. It will be first of its kind project in food processing
sector in the State where entire gamut of food processing activities can be undertaken.
The Park, proposed to be set up in line with a typical industrial park model, will be the
most preferred destination for setting up processing facility for three major reasons inter
alia:
• Availability of developed plots with sizes to suit the need of the investor
• Availability of basic enabling infrastructure like road, water, power etc
• Availability of enabling core processing infrastructure such as storage facility, raw
material warehouse and so on.
Major expected outcome by establishment of AFPPL will include increased realization for
farmers, creation of high quality rural processing infrastructure, reduction in wastage,
capacity building of the producers and processors and creation of an efficient supply
chain along with significant direct and indirect employment generation.
The project would play a vital role in changing the agricultural and food processing
landscape in the region at large and the State as a whole. The level of investments and
envisaged leverage thereon would have visible impact in redefining the existing socio-
economic structure.
28 | P a g e
Layout of food park
29 | P a g e
Location map of Food park
30 | P a g e
Google image of 10 km radius
31 | P a g e
Toposheet of 10 km radius of project site
32 | P a g e

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M/s AGRONOMICS FOOD PARK PVT. LTD.

Detailed Project Report

Submitted by Agronomics Food Park Private Limited

Setting up a Food Park at Ranchi, Jharkhand

CHAPTER PARTICULARS PAGE NO.

4.1 Project Overview

4.2 Services & revenue Portfolio

4.3 Project Background & Objectives

4.4 Key Objectives of AFPPL include

4.5 Need for a Mega Food Park in Jharkhand

4.6 Basic Enabling Infrastructure

4.7 Site Analysis

4.8 FDI in Food Processing Sector

4.9 Tax Benefit

4.10 The Indian Food Processing Industry - Status and

6.1 Growth Drivers.

6.2 Economic Overview

6.3 Infrastructure Overview

• Estimated Project Cost

• Term Loan Repayment Schedule

• Demand Assessment and Marketing Strategy

Name of the Company AGRONOMICS FOOD PARK PRIVATE LIMITED (AFPPL)

Date of Incorporation 28/09/2016

Constitution Private Limited

CIN No. U15400JH2016PTC009175

Name of the Project Greenfield Project

Type of Industry Infra Sector

Sector Service (FoodPark)

Proposed Term Loan Rs. 1450 Lacs

Promoter’s Contribution. Rs. 550 Lacs

Techno-Economic The project is considered technically feasible and

The food processing industry constitutes three kinds of processors:

1. Mr. MAHESH KUMAR AGARWAL

Net Worth 1.06 Cr

2. Mrs. NEHA SARAWGI

Father’s Name Mr. SURESH KUMAR SARAWGI

Net Worth 0.21 Cr

4.2 SERVICE & REVENUE PORTFOLIO

4.3 Project Background & Objectives

4.4 Key Objectives of AFPPL include

• To create integrated modern infrastructure leading to an ideal eco system to

4.5 Need for a Food Park in Jharkhand

4.6Basic Enabling Infrastructure

• Bituminous roads/Pavers and foot paths.

A. Master Plan for the Park (Planning Concept)

B. Site Development, Boundary Wall and Gate House

D. Effluent and Sewage Conveyance & Treatment System

An underground sewerage network has been designed to collect sewage from

E. Estimated Cost of power supply

Success of modern day business depends upon communication infrastructure.

National Mission on Food Processing (NMFP):

4.8. FDI in Food Processing Sector:

The Indian Food Processing Industry Size (US$ Bn)

4.9 Tax Benefit:

4.10The Indian Food Processing Industry - Status and Significance

Indian Food Processing: Share of

5. STATUTORY CLERANCES & MARKETING ARRANGEMENTS

Sl.No. Statutory document/authority Status

1 Pollution Clearance Certificate Applied

2 GST registration 20AAOCA7960N1Z8

3 Electricity Connection Applied

4 Factory License Applied

5 Weight & Measurement Applied