Newly Established Organic Farming Business Seeking Loan in Ahmednagar, India

As the business is new we are planning to start with around 1,500 customers out of which 500 will purchase daily. For the first 3 years. Yearly clientele growth will be approx 100% and volume/turnover wise will be more YOY. Promoters was born and brought up in farmer family and does farming on their own purchased fully irrigated and developed farmland of 75 acres which can be increased to up to 100 acres under different tie-up modules. Promoter has experience of 40 years successfully running a trading business of farm equipment and achieved a turnover of up to INR 32 crores/year. Experience includes farming, authorized dealerships of Ford, Escort and John Deere Tractors and Hyundai Cars. Due to handling tractor dealerships for more than 30 years, the promoter has got good repo with 1,000s farmers to tie up with.

For organic, there is huge demand and also better potential to enhance product portfolio.

Promoter founded 2 companies 25 years back and owned by 2 shareholders is now closed due to unfortunate reasons and it became NPA now with INR 6.00 crs of ledger balance payable.

In this new company, we will grow vegetables and greens to sell to customers and wholesalers.

We are also planning for contract farming where individuals will rent part of land and grow their own crops.

Business has some of the licenses and is in the process of getting all the certificates.

Organic crop production, procurement, sorting grading, minimal processing, packaging etc at farm level and retailing with doorstep delivery. This food category, in the last few years, is gradually in growing demand in the middle and upper classes of families. Only thing is that there are certain constraints that can be successfully handled. Hence we look forward to a considerable gradual growth with no or low waiting period for earning profits.

As of today all the assets are owned by the director but the property value mentioned below can be considered as part of the business because the land will come under the business soon.

We own 75 acre of fully developed high-tech irrigated farm with 3,000 Sq Ft of showroom and workshop on 11,500 sq ft plot and also owns 4 acres of commercial NA plot on Ahmednagar - Pune Highway.

As we grow we can expand the business according to opportunities.

Business has an NPA of INR 6.00 cr of ledger balance payable from the previous venture. This new business will have 2 partners and may vary depending on future development.