FLORICULTURE

(Cymbidium, Gladiolus, Tube Rose, Anthodium, Lilium)

INTRODUCTION:
The North Eastern region is flush with beautiful natural flora throughout the year due to its
peculiar physiography, distinctive weather and agro climatic condition. The country is well
recognized for growing traditional flowers such as jasmine, marigold, chrysanthemum, tuberose,
crossandra and aster. It presents huge opportunity for commercial production and offers lucrative
investment opportunity for farmer and agro entrepreneurs. Commercial cultivation of cut flowers
such as rose, orchids, gladiolus, carnation, anthurium, gerbera and lilies have also been adopted
by farmers on large scale. There is high demand for these products in the domestic and
international market. India has significant prowess in floriculture and it has been identified as
focus area for exports.
North Eastern region has the agro-climatic advantage at tropical and temperate regions to grow
verities of floricultural products in addition to rich genetic diversity. These factors are important for
the investments in the sector advantageously. The project is an eco-friendly venture. Enhances
the greenery of the waste/Jhum lands, reduces pressure on forest resources.
PRODUCT USES:
Flowers are very intimately associated with the social and religious activities in India. In social life,
flowers are offered to welcome, to felicite and to greet friends or relatives and guests in functions.
Flowers are needed in all the religious ceremonies functions including marriages. Garlands and
wreaths are offered on dead bodies of martyars and very important persons (VIPs) and national
heroes as a gratitude for the work done and sacrifice made by them. Flower is a taken of love and
tenderness. They are wanted due to various attractive colours and fragrance. Flowers are also
used for extracting essential oils, which are used in perfumes. Many flowers have medicinal
values and hence are used in Ayurveda. In India, large numbers of flowers are grown in different
parts according to soils and climate and also likings and preferences of the people for specific
type of flowers.
MARKET POTENTIAL:

The major markets for flowers are situated in the states, which produce significant quantities of
flowers. Kerala is one state that has a fairly large market without any production of flowers. Indian
floriculture industry has been shifting from traditional flowers to cut flowers for export purposes.
The liberalized economy has given an impetus to the Indian entrepreneurs for establishing export
oriented floriculture units under controlled climatic conditions. About 60,000 ha area is under
floriculture at present. Production flowers is estimated to be 200,000 tonnes of loose flowers and
500 million (numbers) of cut flowers. An export of floriculture products was valued at Rs. 700
million (US$ 20 million). There has been an impressive growth in the export of cut flowers from
Rs. 10 million to Rs. 700 million in the previous years.

Suggested Capacity:

The proposed garden will have harvesting facility of about 5.70 lakhs cut flowers per annum. The
mix of cut flowers per annum will be as follows:

Product Annual Production (pcs.)

Cymbidium 1.00 lakhs pieces
Gladiolus 0.50 lakhs pieces
Tube Rose 3.00 lakhs pieces
Anthodium 0.60 lakhs pieces
Lilium 0.60 lakhs pieces
Total 5.70 Lakhs pieces

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Basis:-

No. of working days = 365 days per year

No. of Shifts = 1 per day.
One shift = 8 hours

Infrastructure requirement:

The main Infrastructural facilities required are:

Required land area: 2 acres or 8000 sq. m.

Power requirement 20 kw.

Water (required in every working day) 6-7 KL of water

Raw Materials/Consumables:
The various materials required for production of cut flower project will be as follows:

Items Value per Annum (Rs.)

Poly Sheet 5,000
Hard Wire 12,000
Glass ware 8,000
Seeds for nursery 3,000
Tissue Culture 22,000
Fertilizers 20,000
Insecticides 10,000
Trans plant cost 5,000
Diesel Required 15,000
Packing materials 50,000
Total Cost 1,50,000

a) All material & consumable items can be procured from local agencies in the open
market.
b) Suggested Location:
c) Location for setting up of Cut flower unit should be based on well-developed road
and air connectivity. Considering transportation bottlenecks which are a common
feature in this region, such units are envisaged in following areas.
d) Assam: Guwahati, Dibrugarh, Tinsukia, Jorhat, Silchar, Karimganj and Nogaon,
e) Arunachal,Itanagar, Doimukh, Naharlagun, Dirang,Bhalukpung
f) Pradesh: Yachuli, Joram, Hapoli,Pasighat, Bobdilla & Tawang,
g) Meghalaya: Barapani, Nongphu, Barnihat, Shillong, Jowai, and Tura.
h) Nagaland: Kohima, Dimapur.
i) Manipur: Imphal
j) Mizoram: Aizwal
k) Tripura: Dharmanagar, Agartala and Udaipur.
l) Sikkim: Bakhim, Chunthaow, Lachung, Yumthang, Tashiding

m) Process Steps:

n) The main process steps involved are:

o) Choosing a site: Most cut flowers prefer a location in full sun throughout the
entire day. The field and soil should be well drained. Wind protection is highly
desirable for all plant.

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p) Preparing the Bed : Plants should be grown in beds raised 4-6 inches to
maximize drainage. Poorly drained soil should be corrected by placing drain lines
10-12 inches deep under the bed.

q) Green House: Green house envisaged for project will be basically shedding
covers to safeguard the plants from excessive rains as well as in few cases from
excessive sun. The Green house shed will be made by using local bamboo and
sal wood for prop-up and trusses. The top cover will be made by using double
ultraviolet stabilized poly films or shading net.

r) Choosing ideal crops: Crops must be selected keeping mind the following
conditions.

a. Must be low cost of production materials & labour.

b. High value and unlimited demand.

c. High production per sq. ft. of bed space.

d. Long productive life.

i. Appropriate time to plant: Planting must be taken depending on target

market and on plant classification- whether it is an annuals, biennials or
perennials.

ii. How to Plant: In general, transplants should be planted shallow with the
roots placed just below the soil surface.

iii. Watering: To maintain floral quality and peak production, the plants
must be watered frequently, sometimes daily with some soil types.

iv. Fertilizer: Before initiating any fertilizer programme, testing soil for
getting nutrient content is most essential. The application of fertilizer
should coincide with crop need.

v. Weed Control: Weeds must be controlled in field production of cut

flowers. Competition with weeds reduces the quality and quantity of floral
production.

s) Insect Control: The ideal approach is a preventative programme, control insects

early, when they are first detected.

t) Disease Control: Foliar fungus diseases are the most serious disease problem
on cut flowers.

u) Harvest: Flowers should be harvested at the peak perfection, the peak of

perfection is when the flower is showing its best colour and form and last the
longer.

v) Post harvest: After flowers are removed from the fied and placed in the packing
shed, the stems should be cut under water.

w) Pulsing: pulsing is a chemical treatment of flower to prolong the vase life.

x) Marketing & Selling: Flowers can be marketed to a flower wholesaler, a retail

florist or directly to the public at a farmers market or farm market.

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PROJECT ECONOMICS

The total capital requirement estimated is Rs. 28.52 lakhs as given below: -

(Amount Rs. in lakhs)

Land Own/Lease
Land Development Cost 3.50

Building/Civil Works
i) Construct the green house 2500 sq.m. 8.00
ii.) Office/Store/Reception 400 sq.ft. 2.80
iii.) Toilet/Bathroom/cemented open space
Drainage facilities etc. 1.20

Plant & equipments 4.00

Other misc. Fixed Assets

(Water arrangement/Overhead-Reservoir/Pump-set
Power line connection/Water & Electrical fittings
Other Equipments/Office Equipments) 3.50
Preliminary & Pre-operative Expenses 1.00
Sub Total (A) Rs. 24.00

B. Working Capital
(Norms) (Amount Rs. in lakhs)

Raw Materials/Consumables year 1.50

Working Expenses month 0.67
Finished Goods 5 days 0.16
Receivable 0 days 2.19
Sub Total (B) Rs. 4.52

Note: Working Capital to be financed as:-

Margin Money: Rs. 1.63
Bank Finance: Rs. 2.89
Rs. 4.52

Means of Finance (Rs. in Lakhs)

Promoters Equity(25%) 6.43

Term Loan(75%) 19.20
Rs. 25.63

Production Expenses (Rs. in Lakhs)

Raw materials/consumables 1.50

Wages & Salaries 7.40
Utilities 0.60
Repair & Maintenance 0.12
Administrative Overhead 0.24
Selling expenses 10% on sales 2.66
Depreciation 1.35
Interest 2.92
16.79

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Sales Turnover
Flowers Annual Avg. whole sell price Annual Turn Over
Production (pcs.) considered at Kolkatta marke (Rs. in Lakhs)
(Rs. Per Pcs.)
Cymbidium 1.00 lakhs 6.00 6.00
Gladiolus 0.50 lakhs 3.00 1.50
Tube Rose 3.00 lakhs 2.25 10.12
Anthodium 0.60 lakhs 12.50 7.50
Lilium 0.60 lakhs 2.50 1.50
Total Rs. 26.62

Profitability:
Based on the sales Turnover and the operating expenses, the profit would be Rs. 9.83 lakhs
per year. This works out to a return on capital investment of 38%. The unit would break-even at
about 41% of the rated capacity.

Break Even Analysis

A. Variable Cost: (Rs. in Lakhs)

Raw Materials/Consumables 1.50

Utilities 0.60
Selling Expenses 2.66
4.76
B. Semi-Variable Cost: (Rs. in Lakhs)

Wages & Salaries 7.40

Repair & Maintenance 0.12
Administrative Overhead 0.24
Depreciation 1.35
Interest 2.92
2.03

C. Sales Turnover: Rs. 26.62 Lakhs

D. Contribution: Rs. 21.86 Lakhs
E. Break Even Point B/D X !00% 55%
Manpower
Category No. of Person Salary Per Person Monthly Salary Bill
Per Month(Rs) (Rs.)
a) Scientist (Horticulturist) 1 12,000 12,000
b) Laboratory Technician 1 6,000 6,000
c) Skilled Worker 2 6,000 12,000
d) Un-skilled workers 5 3,000 15,000
e) Accounts cum storekeeper 1 5,000 5,000
f) Marketing personal 1 6,000 6,000
Total Manpower cost Rs. 56,000
Salary Bill Rs 6.72 Lakhs + Benefits @10% annually i.e. Rs 7.40
Total Annual Salary Bill: Rs. 7.40
Highlights:
The major highlights of the project are as follows:

Total Capital requirement Rs. 28.52 lakhs

Promoters contribution Rs. 6.43 lakhs
Annual Sales realization Rs. 26.62lakhs
Annual Operating Expenses Rs. 16.79 lakhs
Annual Profit Rs. 9.83 lakhs
Return on sales 37%
Break-even point 55%
No. of person employed 11

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