Sanvitha Agri Business Solutions Pvt Ltd is an 100% Agro based company and we intend to do collective farming of Malabar Neem (Melia Dubia) along with Inter-crops in huge volumes.
Our proposal is to follow Indian traditional farming practice of 50/50 cost and yield sharing agreements, wherein the investor bears the cost and the Farmers contribute their time, skills,efforts and expertise. The cultivation is managed till the end by the company and the yield from Malabar Neem is to be shared on 50:50 ratio thus justifying both the investors & the experts.
However what one needs to analyze is the amount of risk involved compared to the rewards achieved.
In general everyone only concentrates on the outcome projected for an investment. The most important point/s which people tend to forget while investing are:
1) We are investing your money to cultivate Malabar Neem which has a huge demand with multiple industries like plywood and Paper.
2) We are an agro based company and the team involved consists of scientists, biologists, horticulturists and farmers. Their passion and expertise is farming and are working towards its restoration.
3) Land is the only immovable instrument involved in farming. All other assets like, saplings, bore-wells, drip, sump, including, the time, effort & expertise of the team is invested on this unmovable asset and this instrument called land is being registered in the name of the investors.
(b)We are offering the land and the expertise of our team at the base price which we guarantee that an individual cannot find anywhere else. Owning an individual piece of land today is the dream of many however the price offered in the market is way above the reach of a common man. Providers offer one SqYd at some XXXX amount and add 100-500 rupees per SqYdas development charges.
We are charging a straightforward cost which is applicable to do this farming at the actual cost incurred to do Malabar Neem Farming without compromising on cost or Quality. As a company we will be selling this property between a price range spreading between Rs 100 till Rs 150 per SqYd based on our "STEP-UP" pricing module and we guarantee that even at our final price (Rs 150 per Sq.Yds) this purchase is a decent deal.
Your actual investment has the full value if sold at any given time.
4)This is an important point to be carefully examined before investing.
An individual/company can never get you profits for your investment unless they themselves are properly benefited. This applies even at ones workplace.
WHAT: These companies get reasonably benefited for the efforts which the company puts in. They get rewarded 100% of the benefits for the first four years thereafter they have a 50% share from the profits till the end of the project.
WHERE: They get the profits from the short term crops like Corn, Papaya, watermelon, vegetables etc. At the end of the project they get a huge share from the Malabar Neem harvest.
WHEN: They get this profits right from the beginning of the project till its end and only when they do their work.
5) Absolutely, since the investment is done on the base price required to do farming the investor has every option to exit anytime, The increment of pricing purely depends and is proportionate to the development completed in the farm. This helps and investor to gain initial benefits based on the Risk vs Reward ratio calculation.
The above factors have been carefully taken care of and a detailed explanation has been answered above under Q.no : 2
Risk of Initial Investment : This risk prevails till the investment amount is not secured I.E if you are investing @ Rs 100 per SqYd can sale value (that is if this property is disposed) get you more than Rs 100. The company guarantees this factor by selling the project at the base price and adopting the "STEP-UP" pricing module.
Risk when compared: Once you are confirmed that your property can fetch the invested amount + at least Rs 1 added (i.e. if you purchase it at Rs 100 per SqYd and it can fetch at least Rs 101 per SqYds) the risk with comparison starts. Like, what would it fetch if you had invested it elsewhere; Malabar Neem Farming returns ratio is 1:3. This means, it has the capacity of fetching Rs 3 for every rupee invested and is on par with any available market option.
(a)Few want to know as to how many people have invested and are ready to invest only after many others invest.
(b) Few want the plantation to be completed and only post which they feel comfortable to invest.
We understand and respect the insecure nature of the customers and customers cannot be blamed as the past experiences have not been good in many cases. However, as a company we need the initial investors to invest in order to answer these questions and to reach the plantation stage.
On the other hand we have investors who can analyze the capacity of the team and the project details at the initial stages and can start investing. STEP-UP pricing module helps us in such situations. The pricing in such modules depends on the development/s done in the project and the Risk vs Reward ratio.
For example our pricing spreads between Rs 100, 120, 135 and finally to Rs 150 per SqYd. Anyone buying at any stage get the same final benefit at the end of the harvest.
The difference in the initial investment pricing helps the customer decide as to which stage they want to accept entering the project and properly compensates the initial risk takes as per the Risk vs Reward ratio.