Roll Out Plan for Andhra Pradesh
The proposed business plan is to operate 10,000 JAFCs at villages throughout Andhra Pradesh that will serve 30 lakh farmers in 10 years. To facilitate and compliment the operations of these village level JAFCs, 1000 Mandal level centers and 22 District Agri Labs (in addition to the main center at Hyderabad) will be established.
A total investment is Rs. 125.00 Crores with a share capital of Rs.23.50 crores is being sought, spread over a period of 3 years. The rest of the funds would come from the Franchisees as their investment to create the rural infrastructure.
The projected turnover in 6 years is in excess of Rs.5000.00 Crores with a cumulative operating Profit of Rs.250.00 crores. The projected profit after interest, depreciation and tax is approximately Rs.175.00 crores at the end of 6th year.
The Return on the Investment is over 7 times in the 6th year. The IRR is around 50% and the NPV is over Rs.60.00 crores.
Goals for the next 3 years
a. Deployment Plan for 3 years and at the end of 10th year
|
A.P. Total Market Size |
Cumulative Deployment Plan |
||||
|---|---|---|---|---|---|
|
Year-1 |
Year-2 |
Year-3 |
Year-10 |
||
| Districts |
22 |
2 |
8 |
15 |
22 |
| Mandals |
1112 |
20 |
250 |
600 |
1000 |
| Villages |
28124 |
300 |
2000 |
6000 |
19500 |
| Farms |
11531945 |
12500 |
132500 |
392500 |
2925000 |
| Net sown area in acres |
27097500 |
44400 |
470600 |
1393800 |
10383750 |
| Village Centers |
|
100 |
1000 |
2500 |
9750 |
b. Revenue Projections – Cumulative for 3 years and 10th year (Rs. In Crores)
|
Year-1 |
Year-2 |
Year-3 |
Year-10 |
|
|---|---|---|---|---|
| Gross Revenue |
1.57 |
18.00 |
64.23 |
2000.34 |
| Cost of Operations |
5.37 |
22.14 |
59.08 |
1061.42 |
| Financial Costs |
0.26 |
1.60 |
6.23 |
270.36 |
| Net Profit to Balance Sheet |
-4.06 |
-5.74 |
-1.08 |
668.56 |
