Dear Investor,
Proposal for the Installation of Industrial Borehole and Modern Irrigation System at Oak Signet
Limited's Vegetable Farm Project
We hope this proposal finds you in good health and high spirits. We are excited to present you with
a unique investment opportunity that promises a substantial return on investment (ROI) over a
period of one year.
Introduction to Oak Signet Limited: Cultivating Excellence in All-Season Vegetable Farming
Oak Signet Limited stands as a beacon of innovation and agricultural prowess with its expansive
1.06-hectare land dedicated to the art and science of all-season vegetable farming. Founded on the
principles of sustainable agriculture and a commitment to quality, Oak Signet Limited is gradually
transforming into a key player in the agricultural landscape.
Our 1.06-hectare farm is a testament to our unwavering dedication to meeting the demands of the
market throughout the year. At Oak Signet Limited, we recognize the importance of consistency and
reliability in vegetable production. Thus, our team of seasoned agricultural experts employs cutting-
edge techniques and embraces technological advancements to cultivate a diverse range of
vegetables in all seasons.
In the heart of our operations lies a passion for excellence, a respect for the environment, and a
deep understanding of the agricultural ecosystem. Oak Signet Limited takes pride in not just farming
but cultivating a legacy of sustainable practices that contribute to both local communities and global
food security.
As we embark on this journey of all-season vegetable farming, Oak Signet Limited invites you to
explore a world where innovation meets tradition, and where each harvest is a testament to our
commitment to providing fresh, high-quality produce year-round.
Welcome to Oak Signet Limited – where the seasons may change, but our commitment to excellence
remains steadfast.
Overcoming Agricultural Challenges: Proposing a Sustainable Water Solution for Oak Signet
Limited
In the realm of all-season vegetable farming, Oak Signet Limited has proven its mettle with a 1.06-
hectare expanse dedicated to producing quality produce. However, amid the lush greenery and
flourishing crops, a significant challenge looms large – the lack of a reliable and sufficient water
supply.
Challenge: Insufficient Water Supply
Oak Signet Limited recognizes that optimal vegetable cultivation requires a consistent and
substantial water source. The existing water supply (a deep well), while adequate for basic needs,
falls short when it comes to meeting the precise irrigation demands essential for maximizing yields
and ensuring consistent crop quality.
Solution: Industrial Borehole and Modern Irrigation Fittings
To address this challenge and propel Oak Signet Limited towards increased profitability, we propose
the installation of an industrial borehole combined with modern irrigation fittings. This strategic
investment aims to provide a sustainable water solution that not only meets the current needs of
the farm but also positions Oak Signet Limited for long-term success.
Benefits of the Proposed Solution:
1. Consistent Water Supply: The industrial borehole will tap into a reliable underground water
source, ensuring a consistent and uninterrupted water supply throughout the year.
2. Efficient Water Distribution: Modern irrigation fittings, such as advanced spray tube
technology, will be implemented to optimize water usage. This ensures that each drop of
water is utilized efficiently, minimizing wastage and maximizing the impact on crop growth.
3. Increased Yields and Profitability: By addressing the water scarcity challenge, Oak Signet
Limited will significantly enhance its vegetable yields. This translates directly into increased
profitability, creating a positive ripple effect across the entire operation.
Investment and Profitability Projections:
The installation of the industrial borehole and modern irrigation system is not just an infrastructure
enhancement; it's a strategic move towards a more lucrative future. The projected profitability
stemming from increased yields in all-season vegetable cultivation, including tomatoes, okra,
spinach, pumpkin leaves, and bell peppers, showcases the immense potential for financial growth
and sustainability.
Investment in the installation of the industrial borehole and modern irrigation system is a strategic
move to maximize profitability. Based on our analysis, here are the projected profit margins for the
selected crops. The table below contains, size of land allocated to each crop, number of days from
“planting to harvest”, harvest duration, projected quantity to be harvested, current all time low
market prices and projected revenue to be generated, within six months in operation. Worthy to
note is the fact that only 1 hectare of land is allocated for the project as the outstanding 0.6 hectare
is currently utilized for research.
S/N ITEM Quantity Days to Harvest Projected All time Projected revenue in
[Land harvest period quantity lowest 6 months
allocation market
[ton]
/ Hectare] price / ton
1. Tomatoes 1/4 100 60 days 12 226,000 N2,712,000
2. Okra 1/8 100 90 days 6 400,000 N2,400,000
3. Spinach 1/4 35 Daily 0.02 20,000 N3,600,000
[20kg] [1000/kg]
4. Pumpkin 1/8 100 Daily 0.02 60,000 N10,800,000
leaves [20kg]
[3000/kg]
5. Bell 1/4 100 60 days 3 1,100,000 N3,300,000
Peppers
Total projected revenue based on all time lowest market prices within N22,812,000
six months
[Twenty-two million,
eight hundred and
twelve thousand
naira only]
In essence, Oak Signet Limited's commitment to excellence in vegetable farming will be fortified by
this proposed water solution, allowing the company to navigate through challenges and harvest
success with every season. From the table above, projections indicate a revenue generation of over
N20,000,000 in the first six months with possibilities of exponential growth while leveraging on cost
effective practices. Please note that these projections may slightly differ from reality, however same
are made with regards to revenue generated in previous years.
Scope of Work:
1. Hydrogeological Survey:
● Conducting a detailed survey to determine the most suitable location for borehole
drilling.
2. Borehole Drilling and Installation:
● Engaging reputable drilling contractors to install a reliable industrial borehole.
3. Pump System Installation:
● Installing a pump system capable of efficiently drawing water from the borehole for
irrigation purposes.
4. Modern Irrigation System Implementation:
● Integrating a spray tube irrigation system to ensure precise and efficient water
distribution.
Project Timeline:
● Survey and Planning: [20/01/2024] - [22/01/2024]
● Borehole Drilling and Installation: [27/01/2024] - [03/02/2024]
● Pump System Installation: [03/0202024]
● Irrigation System Implementation: [05/02/2024] - [06/02/2024]
● Testing and Commissioning: [07/02/2024] – [10/02/2024]
Cost Estimate: Installation of Industrial Borehole and Spray Tube Irrigation System
1. Hydrogeological Survey:
● Cost: N50,000
● Description: A comprehensive survey to determine the optimal location for borehole drilling,
ensuring the most efficient access to the underground water source.
2. Borehole Drilling and Installation:
● Cost: N650,000
● Description: Engaging a reputable drilling contractor for the installation of an industrial
borehole, including the drilling process, casing, and well development.
3. Pump System Installation:
● Cost: N250,000
● Description: Procuring and installing a high-capacity pump system to draw water from the
borehole for irrigation purposes. This includes the pump unit, electrical connections, and
related components.
4. Electrical Connections and Controls:
● Cost: N300,000
● Description: Ensuring the integration of the pump system with the electrical grid, including
the installation of necessary controls and safety measures.
5. Irrigation System Design and Planning:
● Cost: N50,000
● Description: Engaging irrigation specialists to design a custom spray tube irrigation system
tailored to Oak Signet Limited's farm layout and crop distribution.
6. Spray Tube Irrigation Components:
● Cost: N250,000
● Description: Procuring high-quality spray tube components, including pipes, fittings, nozzles,
filters, and valves, necessary for the efficient distribution of water across the farm.
7. Installation of Spray Tube Irrigation System:
● Cost: N30,000
● Description: Employing skilled technicians to install the spray tube irrigation system,
including the placement of pipes, assembly of components, and system testing.
8. Testing and Commissioning:
● Cost: N20,000
● Description: Conducting thorough testing of the entire borehole and irrigation system to
ensure functionality, efficiency, and adherence to safety standards. Commissioning includes
fine-tuning for optimal performance.
Contingency (10% of Total Cost):
● Cost: N160,000
● Description: A contingency fund to account for unforeseen circumstances, ensuring that the
project remains within budget even in the face of unexpected challenges.
Total Estimated Cost:
● Grand Total: N1,765,000.
This comprehensive cost estimate is based on industry-standard rates and takes into account the
various components required for the successful installation of an industrial borehole and a spray
tube irrigation system at Oak Signet Limited's vegetable farm. The proposed investment aims to
secure a sustainable water supply and maximize profitability through efficient irrigation practices.
Return On Investment:
We are excited to present you with a unique investment opportunity that promises a substantial
return on investment (ROI) over a period of one year.
Investment Amount: N1,800,000
Return on Investment: 50%
Investment Duration: 1 Year
Investment Details:
1. Purpose of Investment:
● The funds will be allocated towards the expansion and enhancement of Oak Signet Limited's
agricultural operations, specifically focusing on the installation of an industrial borehole and
a modern spray tube irrigation system. This strategic move is poised to significantly increase
crop yields, ensuring sustainable growth and profitability.
2. Expected Return:
● We propose a 50% return on the invested sum over the course of one year. The returns will
be calculated annually and disbursed at the end of the investment period.
3. Utilization of Funds:
● The invested amount will be judiciously utilized for the implementation of the proposed
agricultural infrastructure, covering the costs associated with the hydrogeological survey,
borehole drilling, pump system installation, spray tube irrigation system design, components
procurement, and overall project management.
Projected Returns:
Initial Investment: N1,800,000
Return on Investment (50%): N900,000
Total Value after 1 Year: N2,700,000
Repayment Schedule:
● First 6 Months: No repayment.
● At the End of 12 Months: Full repayment of the initial investment amount (N1,800,000) plus
the agreed return on investment (N900,000).
Security and Assurance:
Your investment is secured against the tangible assets and improvements made to Oak Signet
Limited's agricultural infrastructure. The increased efficiency and productivity resulting from the
borehole and irrigation system will serve as collateral, providing a robust foundation for the
investment's security.
Conclusion:
The installation of an industrial borehole and the adoption of modern irrigation solutions at Oak
Signet Limited's vegetable farm is not only a strategic investment in overcoming water scarcity but
also a crucial step towards maximizing crop yields and profitability. We believe that this initiative will
contribute significantly to the success of our vegetable farming project.
We look forward to the opportunity to discuss this proposal further and address any questions or
concerns you may have. Thank you for considering our proposal, while we are excited about the
prospect of partnering with you on this important project.
Together, let us turn the tide on water scarcity and usher in a new era of agricultural prosperity for
Oak Signet Limited.
Sincerely,MD, Oak Signet Limited
