FAQ's :

What is the proposal?

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.

When is Malabar Neem harvested?
Malabar Neem is a wild crop and it is widely used in Plywood and Paper industry. High Quality Sapling, water and fertilizer management are properly done to ease Malabar Neem's growth thus achieving optimum output within 7 years.
There were other similar projects in the market involving Teak-wood which failed, how is yours different?
Not really. Teak-wood is considered the king among Timber used in every household and as a tree it has always been profitable. The people and their greed have earned a negative perception for Teak-wood plantation. We need to understand that there is a huge difference between an agro based farming and just planting few trees in a small real-estate plot which is meant for construction or re-sale. The aim was to promote real estate and land sales by showing an added advantage of income from teak-wood. For them cultivation/plantation was just an added benefit to attract the customer.

We have come across other customers who have paid some X amount for a tree to companies without knowing as to where the plantation is being done, who does the plantation and what is the security being given for the invested amounts. When customers fund individual/companies whose real intention/income source is not from agriculture/plantation then the results are futile. However, for the error made by humans the tree gets blamed. This scenarios has caused such an adverse effect and mind-block for individuals today that teak-plantation (in fact any plantation) has become a talk of the town as being an unfruitful investment.

The reality is different. If Teak-wood is being used in every household and we pay good amounts to buy them then someone-somewhere is doing a good& profitable plantation.

An investment involves your money being entrusted into someone else's hand for which you expect some returns and it always involves risk and we are no exception.

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. Where is your money being invested? Does that source have the capacity to achieve profits as projected?
  2. Does the instrument/person/company, which does the project, have the capacity & expertise to generate income from your investments?
  3. What is the security being provided for your investments and is it justified?
  4. What, where and when is the benefit for the person who handles your investment?
  5. Does the investment plan provide a profitable & anytime exit plan for you?

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.

Do you have any Insurance for this crop ?
Yes. Our farms are eligible for insurance. This is currently provided on optional basis and customers have to bear the charges. T&C apply.
How do you provide Security & Returns for my investments?
What is the real meaning of risk. Risk is the potential that a chosen action or activity will/might lead to a loss and in our case the risk in discussion is your initial investment.

Risk in our case can happen if the initial purchase price is not justifiable. If Malabar Neem cannot fetch in Lacs. If our team fails to manage the crop and abandons the project in between.

The above factors have been carefully taken care of and a detailed explanation has been answered above under : 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.

What is "STEP-UP" pricing module and how does it helps customers?
A project needs investor's funding right from the initial stage however different investors need different security levels to help them understand and feel secured to invest in any project.

(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.

How am I benefited ?
  • You get the ownership of a decent property (1 acre or multiples)at very nominal price.
  • You get 50 % share in one of the economically viable crop without personally involving yourself as everything is taken care by the project owners. You invest, sit back and share the yields.
  • Papaya plantation fetches upto 20 thousand PA per acre right from the 5th year.
  • 7th year the Malabar Neem crop fetches the expected 8-10 Lacs.
  • If we keep the commercialism aside, you would be a proud contributor of 300 trees (per acre) to the environment.
  • Post 7 years this investment is seen as a good plan for a farm house as the project will end up with only Fruit-Orchids (as Malabar Neem will be sold ) leaving behind a lush green farm land big enough for construction, with gated community, roads connecting each acre of land giving independent access to the land owner/s and the most important "the likeminded neighbors" as all the owners would have minimum of 1 acre of land, which means "family privacy" and would be an ideal plan to get away from the concrete jungle for a post retirement life.
Can we buy a plot of land without Malabar Neem plantation on it, for construction?
No. The very purpose of we doing this project is to get the benefits from the final crop.
I would like to see the site. Do you provide the transport facility to visit the site?
You are welcome to visit the site on any Saturday or Sunday. We do not provide transportation facility on company's cost. You would have to travel on your own convenience, or companies cab can be availed at a cost of Rs 500 per head.
Are there any discounts or negotiations?
The offer price is fixed and we do not have any scope for negotiations.
When is the land registered in my name?
The registration/transfer is done on receipt of full payment.
Can we have a choice in selecting the farm?
An up to date copy of the farm layout and allocation is available at the time of registration and allocations are done on first come first serve basis (without any prior reservations) to maintain a fair and transparent ownership.
As owners, can we construct a farm house, on our own expense, in our farm?
No, though customers being the owners it cannot be allowed for any construction in the "cultivation area". However, if interested, separate area has been arranged at nominal cost.
I come from farming background, can I implement/handle/modify any changes to my farmland or the crop?
Ideas/suggestions are welcome. However, there's a lot of investment involved in availing proven technology by reputed scientists/biologists for the project and hence any changes/modifications is not permitted without prior and written concern of the project owners.
What happens if my piece of land yields lesser than the others? Will I get lesser returns?
As in cultivation, the yields might/would differ depending on many reason/s therefore the collective yield is divided cumulatively among all the members, irrespective of individual acreage ownership.
What if I want to sell the my property in the middle of lease period?
As the owner you are free to transfer/change the ownership however the new owner has to agree/follow the same agreement of cultivation as done originally. Any/all cost/s emerging out of the transfer has to be borne by the customer or the new party.
What is the project exit plan?
The Malabar Neem harvest will bring the project to an end. Thereafter, the entire project would be handed over to the customers after forming a general body and electing community leaders.
Whom do I consult/approach in case of legal conflicts?
Optimum care has been taken to avoid conflicts and the customers are welcome for verbal discussions with project owners and other members collectively. However, in case of no solution, any legal conflicts are limited to Hyderabad jurisdiction.