PROJECT REPORT ON

Orchids under Polyhouse

SUBMITTED BY

Promoter Name:
xxxxxxxxxxxxxxx

Project Location:
xxxxxxxxxxxxxxxx
 Project Report on Orchids cultivation under Polyhouse

CONTENTS

CHAPTER PARTICULARS
NOS.

I. ABOUT THE PROMOTER

II. PRODUCTION TECHNOLOGY

III. MARKET POTENTIAL

IV. SWOT ANALYSIS

V. ECONOMICS OF THE PROJECT

A. Project Profile (Financial)

B. Basis & Presumptions
C. Total Cost of Project-
D. Means of Finance
E. Projected Profitability
F. Financial Analysis
G. Term Loan Repayment
 Project Report on Orchids cultivation under Polyhouse

CHAPTER - I

ABOUT THE PROMOTER

1. Name : xxxxxxxxxxxxx

2. Address(Residence) : xxxxxxxxxxxxx

3. Contact Number : xxxxxxxxxxxx

4. Date of Birth : xxxxxxxxxxxx

5. Educational Qualification : xxxxxxxxxxxx

6. Project Location (Addr.) : xxxxxxxxxxxx

7. Constitution : xxxxxxxxxxxx

8. Experience : xxxxxxxxxxxx
 Project Report on Orchids cultivation under Polyhouse

CHAPTER – II

PRODUCTION TECHNOLOGY

Varieties
Sharp Purple

Climate
75% green shade net with 70 - 80% humidity, 18 - 28ºC temperature and light intensity of 1500-2000 foot
candles is ideal for growing this tropical orchid.

Growing environment:
75% shade net house with 70- 80% humidity, day temperature of 21 - 29oC and night temperature of 18
to 21oC is ideal for growing this tropical orchid. In high rainfall zones, the shade net house should be
provided with a rainshelter.

Propagation:
Division of clumps, keikis, back bulbs and tissue culture plants.
Containers and support : perforated earthen pots are ideal and the plants are staked with bamboo sticks.

Growing media:
Most common potting mixture consists of charcoal, broken pieces of bricks and tiles, coconut husk and
fiber.

Irrigation:
Mist or overhead sprinkler to provide water and to maintain humidity.

Nutrients:
Foliar application of NPK 20:10:10 @ 0.2% at weekly intervals starting from 30 days after planting.

Growth regulators
Foliar application of GA3 50 ppm at bimonthly intervals starting from 30 days after planting.

Repotting
Orchids need repotting regularly, usually every two to three years.
1. When the plant grows large and overgrows its container.
2. When the potting material deteriorates
3. When the plant has to be split or divided
4. It is better to repot epiphytes every year.

The best time for repotting is when fresh roots emerge at the bases of the previous year’s growth. In
monopodial climbers, repotting or division has to be done when new leaf growth shows at the top and
there is new root growth.

Splitting or division of plants

Plant grown to a large clump with 2 or 3 old canes and new shoots, - divided before repotting. Each
division - at least one old cane of two years’ growth, one new shoot & some new roots.

Pests:
Snail and slug: Hand pick and destroy
 Project Report on Orchids cultivation under Polyhouse

Harvest
Dendrobium flower fully matures only 3 or 4 days after it opens. Flowers are harvested when they are fully
open as the flowers cut prior to their maturity will wilt before reaching the wholesaler. Immediately after
harvest, the lower 0.75cm of the peduncle is cut off, and the flower is inserted into a fresh tube of water
containing preservative. Harvesting the spike when 75 per cent of the flowers are open and remaining
buds are unopen.

Post harvest handling:

Pulsing : 8-HQC 500 ppm + SucOrchid 5% for 12 hrs

Holding solution : AgNO3 25 ppm + 8-HQC 400 ppm + SucOrchid 5%
Wrapping material : 50 gauge polythene with base of spikes dipped in 8-HQC 25 ppm

Yield:
8 - 10 spikes/plant/year

Pests:
Snail and Slug:
Hand pick and destroy them immediately.

Diseases:
1. Bacterial soft and Brown rot (Ervinia spp.)
Foliar application with Streptomycin Sulphate @ 0.5 g + Copper Oxy Chloride @ 2 g/l.

2.Bacterial Brown spot (Acidovorax sp.)

Foliar application with Streptomycin Sulphate @ 0.5 g + Copper Oxy Chloride @ 2 g/l.

3. Blackrot (Pythiumsp.and Phytothora sp.)

Foliar application of Metalaxyl 2 g / lit. (or) Dimethomorph 50% WP 0.5 g / lit.

4. Anthracnose – Foliar application of Thiophanate Methyl 2 g / l (or) Difenoconazole 0.5 ml/l

 Project Report on Orchids cultivation under Polyhouse

CHAPTER – III

MARKET POTENTIAL

Marketing of Orchid flowers is the crucial factor for the success of the project. Orchid is decade
old flower for Indian farmers and the farmers are getting good price in the domestic market. The
big regulated flower markets are at New Delhi, Banglore, Indore, Badoda, Colcatta,
Ahmedabad, Lacknow, Hydrabad, Vijayvada etc. In these markets there is good sales
potentiality for Orchids throughout the year.

Cut Flowers that are widely used for attractively decorating various places in different
occasions. The demand of flowers increases during Christmas, New year day, Valentine day,
which are during winter season. Cut flowers are demand by corporate houses, hotels and
restaurants. Weddings, birthday parties, seminars, and other such social gathering events are
incomplete without floral decorations.

The small flower stalls on the roadside are playing significant roles in the floriculture revolution.
The entrepreneurs may have tie-up with hotels and florist’s shops in the cities. However as
Orchids is very fragile & perishable in nature, its packaging & transport play important role in its
marketing. Steady supply, quality & grading are also associated with successful marketing of
the cut flowers.

Emerging newer market concept like online sale, specialized florist outlet, floriculture trade show
in coming years expected to see newer dimension in terms of more distant consumer demand &
product proposition.

As the demands of Orchids flowers are splendid in future, it is one of the imperative fields to
endeavor.
 Project Report on Orchids cultivation under Polyhouse

CHAPTER – IV

SWOT ANALYSIS

Strengths:

 Domestic market for cut flowers, especially for different varieties and colors in Orchids,
is growing. Currently floral decoration is the growing social trend. Many are ready to
invest on exterior decorations and interior decorations using fresh cut flowers.
 The Governments have identified floriculture as a sunrise sector and are providing
strong support through various policies and schemes.
 Provides employment for a large Indian population including women, living in rural
territories.

WEAKNESS:

 High capital investment

 Demand fluctuate according to different seasons
 Unavailability of skilled manpower
 Incidence of pest and diseases many a times becomes unmanageable.
 Poor marketing linkage and poor market infrastructure.
 Non-availability of adequate quality planting material.
 Poor post-harvest management infrastructure. Due to the perishable nature of the
products it’s important to have enough transportation and good logistics facilities.
 Negligence to research relating to technical factors

OPPORTUNITY:

 There is tremendous demand for flowers due to the growing popularity of western life
style
 Access to metropolises like Kolkata, Chennai, Mumbai and Delhi etc. and other big
cities enhances the possibilities for tapping market of these states.
 Growing consumer base with higher income is expected to add demand in new market
 The demand for flower decorations is increasing rapidly due to lavish arrangement
during
social, political, entertainment & sport event.
 Availability of new and unique varieties

THREATS:

 Uncertainty in weather conditions and frequent occurrence of natural calamities like

cyclone and drought.
 Uncertainty about market stability
 Exploitation by middlemen in the market chain.
 High incidence of pest and diseases.
 Project For:Orchid cultivation under Polyhouse

V. ECONOMICS OF THE PROJECT

A. PROJECT PROFILE (Financial)

Sr. No. PARAMETERS VALUE

1 Unit Size in sq.m. 4,000

2 Product Orchid cut flowers

3 Variety Sharp Purple

4 Cost of the project 68,52,500

5 Bank loan 51,39,375

6 Margin money 17,13,125

7 Financial Indicators

BCR at 15% DF 1.34 :1

NPW at 15% DF Rs. 43,43,053

IRR% 34

8 Average DSCR 2.7

9 Interest Rate (% per annum) 12

7 years including first

10 Repayment year of moratorium
period
 Project For:Orchid cultivation under Polyhouse

B. BASIS & PRESUMPTIONS

S.No. Particular Unit Quantity

I. Techno-economic parameters

Mortality % 5

Plant density plants per sq.m. 10

Total no of plants Nos. 40000

Payback period 7 years

II. Expenditure norms

Cost of seedling Rs./ seedling 50

Fertilizers & Mannuers per annum sq ft. 100

Insectisides & Pesticides per annum sq ft. 100

No of semiskilled workers Nos. 4

Cost of one semiskilled worker per annum Rs. 72,000

III. Income norms

Sale price of cut flowers Rs./spike 13

Yield of cut flowers Sprokes/ plant 8

Subsidy receives @ 50% from N.H.B. treated as F.D. in bank @ 6%

This amount of subsidy is used for repayment of loan

 Project For:Orchid cultivation under Polyhouse

C. TOTAL COST OF PROJECT

Unit Rate Amount in

Sr. No. Particular Unit Quantity
in Rs. Rs.

1 Cost of Polyhouse Sq.m. 850 4,000 34,00,000

2 Initial cost of cultivation

Bed material ( coconut husk) Rs./sq.m. 50 4,000 2,00,000
Planting material Rs. 50 40,000 20,00,000
Fertilizers & Mannuers Rs./sq.m. 50 4,000 2,00,000
Insectisides & Pesticides Rs./sq.m. 50 4,000 2,00,000
Manpower & supervision Rs./sq.m. 30 4,000 1,20,000
27,20,000

3 Irrigation infrastructure
Sprinkler & Shower system Rs./sq.m. 75 4,000 3,00,000
Tube well Nos. 1,50,000 1 1,50,000
Water storage tank Ls. 50,000
Pipeline Mtrs. 150 150 22,500
Electric pump & electrification Nos. 35,000 1 35,000
Generator Set 10 KVA Nos. 45,000 1 45,000
3,02,500
4 Infrastructure
Cost of Labour Quarter (20’x10’ x 1 Nos ) Sq. ft. 200 400 80,000

5 Mechanization
Cost of Sprayer & other Ls 50,000
equipments

6 Post Harvest Infrastructure

Grading/packing room Sq. ft. 600 500 3,00,000

TOTAL 68,52,500
 Project For:Orchid cultivation under Polyhouse

D. MEANS OF FINANCE

Sr. No. Particular Unit Quantity Amount in Rs.

1 Term loan % 75 51,39,375

2 Own contribution % 25 17,13,125

TOTAL 68,52,500

3 Subsidy entitlement @ 50% from NHB 34,26,250

 Project For:Orchid cultivation under Polyhouse

E. PROJECTION OF PERFORMANCE & PROFITABILITY

Unit rate
S. No. Particular Unit Quantity I year II year III year IV year V year VI year VII year
in Rs.
Income
a. Income from cut flowers
Production of cut flowers Spikes 1,28,000 3,20,000 3,20,000 3,20,000 3,20,000 3,20,000 3,20,000
Selling price Rs./spike 13 13 13 13 13 13 13
Income 16,64,000 41,60,000 41,60,000 41,60,000 41,60,000 41,60,000 41,60,000
b. Interest on Subsidy @ 6% 2,05,575 2,05,575 2,05,575 2,05,575 2,05,575 2,05,575 0
c. Subsidy from NHB 0 0 0 0 0 34,26,250
Total sale TOTAL (A) 18,69,575 43,65,575 43,65,575 43,65,575 43,65,575 43,65,575 75,86,250

Expenditure
a. Cost of Raw Materials
Fertilisers per sq.m. 100 4,000 4,00,000 4,00,000 4,00,000 4,00,000 4,00,000 4,00,000 4,00,000
Pesticides & fungicides per sq.m. 100 4,000 4,00,000 4,00,000 4,00,000 4,00,000 4,00,000 4,00,000 4,00,000
b. Cost of Consumbles
Packaging material per stem 0.25 32,000 80,000 80,000 80,000 80,000 80,000 80,000
c. Cost of Utilities
Electricity, Water per sq.m. 25 4,000 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000
d. Cost of Manpower
Semiskilled workers Nos. 72,000 4 2,88,000 3,16,800 3,48,480 3,83,328 4,21,661 4,63,827 5,10,210
e. Overhead Expenses
Transportation per month 10000 12 1,20,000 1,20,000 1,20,000 1,20,000 1,20,000 1,20,000 1,20,000
Marketing expenses 5% of 93,479 2,18,279 2,18,279 2,18,279 2,18,279 2,18,279 3,79,313
sales

TOTAL (B) 14,33,479 16,35,079 16,66,759 17,01,607 17,39,940 17,82,106 19,89,522

Net Income GRAND TOTAL ( A-B) 4,36,096 27,30,496 26,98,816 26,63,968 26,25,635 25,83,469 55,96,728
 Project For:Orchid cultivation under Polyhouse

F. Financial Analysis

Particulars I year II year III year IV year V year VI year VII year

Capital Costs 68,52,500

Recurring cost 14,33,479 16,35,079 16,66,759 17,01,607 17,39,940 17,82,106 19,89,522

Total Cost 82,85,979 16,35,079 16,66,759 17,01,607 17,39,940 17,82,106 19,89,522

Benefit 18,69,575 43,65,575 43,65,575 43,65,575 43,65,575 43,65,575 75,86,250

Depreciated value of
2,22,490
buildings @ 10%
Depreciated value of Plant &
16,07,946
Machinery @ 15%
Total Benefit 18,69,575 43,65,575 43,65,575 43,65,575 43,65,575 43,65,575 94,16,686

Net Benefit -64,16,404 27,30,496 26,98,816 26,63,968 26,25,635 25,83,469 74,27,164

Discounting Factor@ 15% 0.87 0.76 0.66 0.57 0.50 0.43 0.38

NPV cost at 15% DF 72,08,802 12,42,660 11,00,061 9,69,916 8,69,970 7,66,305 7,56,018

NPV benefits at 15% DF 16,26,530 33,17,837 28,81,280 24,88,378 21,82,788 18,77,197 28,82,775

NPW at 15% DF 43,43,053

BCR at 15% DF 1.34 :1

IRR % 33.77
 Project For:Orchid cultivation under Polyhouse

G. Term Loan Repayment

12
Rate of interst - % per annum

51,39,375
Opening balance of term loan

Loan Gross Total Net

Year Principal Interest DSCR
Outstanding Surplus Repayment Surplus

1 51,39,375 4,36,096 0 6,16,725 6,16,725 0 -

2 51,39,375 27,30,496 8,56,563 6,16,725 14,73,288 12,57,209 1.9

3 42,82,813 26,98,816 8,56,563 5,13,938 13,70,500 13,28,316 2.0

4 34,26,250 26,63,968 8,56,563 4,11,150 12,67,713 13,96,256 2.1

5 25,69,688 26,25,635 8,56,563 3,08,363 11,64,925 14,60,710 2.3

6 17,13,125 25,83,469 8,56,563 2,05,575 10,62,138 15,21,332 2.4

7 8,56,563 55,96,728 8,56,563 1,02,788 9,59,350 46,37,378 5.8

Avg. DSCR 2.7