organic.ppt
- 2. TABLE OF CONTENTS 1.) Executive Summary A. ) Background of our company B. ) Company Overview 2.) Summary of financial data FRESH ORGANIC FOOD 1
- 3. EXECUTIVE SUMMARY This Prospectus outlines the potential for an organic food processing and packaging enterprise focusing on the production and distribution of packaged organic food products. The aim of this enterprise is to meet the increasing demand for organic foods in the market while promoting sustainable and environmentally friendly practices. A.) Background of our Company Our company was originally established in Patna, Bihar as Fresh Organic Food processing and packaging store on 27th July 2021, with an initial capital of 20 Lakhs under the companies act 2013 vide certificate of incorporation issued by the registrar of the companies, National capital territory of Delhi. We are pleased to present this prospectus for our organic processing and packaging enterprise, established two years ago with an initial capital of 20 lakhs. This document outlines our business model, achievements, growth potential, financial performance, and funding requirements. B.) Company Overview We are engaged in to agriculture operations, wherein we cultivate wheat, paddy, sugar cane, fruits, and vegetables and flowers. We are also engaged in the operations of wood plantation. We have an integrated facility of cultivation, processing and distribution of agriculture commodities. We focus organic farming for our horticulture segment of farming, wherein we use bio-agri inputs such as Bio-Pesticides and Bio-Fertilizers. An awareness of the health benefits of organically produced food, and knowledge of the damage done to the Environment by conventional, intensive farming methods, has created the platform for demand of organic produce globally. Considering this fact and with a vision to grow in the organic food arena, we have also ventured ourselves into the cultivation of organic fruits and vegetables on some of the areas of our farms. We have laid down the foundation of our agriculture operations by acquisition of farms situated at Jamuhar, Sasaram in Rohtas District Bihar in the month of July, 2021. Our farms are spread over 295.80 Acres of land. We have adopted share cropping model of farming, wherein we contract cropper/ farmers and workers in the vicinity of our farms. Our Farm manager with the assistance of cropper /farmers / field assistants formulates a Strategy and decides the crops to be grown. Subsequently, the contracted farmers and workers are being assigned with their respective crops to be grown and demarcated area. This model of share cropping encourages the Cropper to work harder and employ better techniques as compared to slave plantation methods. After the Harvesting, cropper gets the pre-determined share of crops and he has a liberty to distribute the same. The Sharing ratio of crops ranges between 10% to 25 % to croppers and remaining proportion to us. Our thrust is to provide technical assistance to croppers. We also engage ourselves in to supervision of croppers to constantly monitor the quantity and quality of crops. FRESH ORGANIC FOOD 2
- 4. Our Farm: We operate from our 295.80 acres of farm situated at Jamuhar, Sasaram in Rohtas District Bihar. Our farm is situated near to Gopal Narayan Singh University of Agriculture. This has been a significant force in ushering Green Revolution. Our Farms are with a high fertile capacity. We cultivate wheat, paddy, pulses, sugar cane and vegetables. We are also equipped with orchard of Mango, Guava, Pomegranate and various kinds of flowers predominantly Roses. We also engage in wood plantation viz. Poplar, Eucalyptus, Kadam, Mentha and Bamboos. Leveraging the experience of our Promoters:- Our Promoters Mr. Brij Kishore Sabharwal and Mr. Amar Singh Bisht have an experience of more than two decades In different aspects of industry. Experienced management team and a motivated and efficient work force:- Our Company is managed by a team of experienced and professional personals having knowledge of every aspect of agricultural activities, marketing and finance. The faith of the management in the staff and their performance has enabled us to build up capabilities to expand our business. Suitable farm land:- The farm land of our Company is situated at Jamuhar Sasaram, Rohtas District Bihar. Where water is available in plenty and the climate is conducive for farming. Man power in the form of skilled farmers and unskilled workers are easily available in the proximity of the farm. In addition to that our land is situated near to Gopal Narayan Singh University of Agriculture and Technology, which is the first agricultural university of Bihar and had been a significant force in ushering Green Revolution. i FRESH ORGANIC FOOD 3
- 5. Strong Customer base:- Our record of timely supply of right quantity and quality products to our customers has helped us to build strong relationships over a number of years with our customers in India Extensive array of Agri Products:- We cultivate wide range of agriculture products which differentiate ourselves from other agriculturist and agriculture companies. We have product portfolio ranging from wheat, paddy, pulses, sugar cane, fruits, and vegetables, flowers to wood plantation viz. Poplar, Eucalyptus, Kadam, Mentha and Bamboos. Growth driven:- Our Company has witnessed growth in past Two years. Turnover of our Company have increased from Rs.20 Lacs in the fiscal 2021 to Rs.325 Lacs in the fiscal 2022 resulting in the increase of 126 % over the past two years. Business Strategy:- The business strategy has been consumer centric to bring them value for money by imbibing best practices and processes aiming at all round innovation through use of technology and resources to deliver and contribute maximum and sustained returns to all stakeholders. We intend to pursue the following strategies in order to consolidate our position and grow further: Complete transformation to Organic Farming:- Due to the engulfing demand of the agro-products which are chemical free and safe for consumption, we have ventured into the organic farming in to the horticulture segment of our operation on certain area of our farms. We plan to transform entire horticulture segment of our operations to organic. Forward Integration:- At present we are engaged in to agriculture operations, where we cultivate wheat, paddy, pulses along with fruits, vegetables, flowers among others. We plan to establish a food processing facility at our farm land in order to enable ourselves to process food grains further to deliver the variety of agro products to our customers. This entire set of activities would complete the value chain by providing the synergy of backward as well as forward. FRESH ORGANIC FOOD 4
- 6. Setting up cold storage:- Agricultural produce is perishable in nature and sometimes we cannot fetch the appropriate price for our products due to perishable nature of the products. We plan to set up a cold storage, whereby we can store the produce without any degradation of the quality and market the produce accordingly Greenhouse Farming:- Going forward, we plan to establish a greenhouse farming of fruits and vegetables to ensure year round supply to our consumers. This would enable over selves to gain competitive edge. Our Business Model:- As described, we adopt the share cropping model, wherein we contract croppers to carry out our agriculture operations. The croppers use their own equipment’s and incur the cost of fertilisers and acquire seeds under the supervision and guidance of our farm manager. After the harvesting, croppers are entitled to their share of crops which may range from 10 % to 25 % depending upon the pre-determined arrangement. We are entitled for balance share of crops and we engage ourselves in to distribution of the crops. Flow of agriculture operations of our company Identity Lay out of Assist Harvest and Crop share Distribute croppers / strategy farmers provide impart to to market farmers and demarcate area crop and farmer wise during cultivation facility for storage farmers The broad process of cultivation is as under: • Preparation & levelling of land • Fertilizing the land • Sowing the seeds • Care after sowing - watering, manuring and plant protection • Irrigation • Cropping • Harvesting • Sorting and packing i FRESH ORGANIC FOOD 5
- 7. COLLABORATIONS The Company has so far not entered into any technical or financial collaboration agreement. UTILITIES Power For our agriculture operations, requirement of power is met with electricity supply of state government electricity board. Water For agriculture operations, we are mainly dependent on monsoon and we also procure water from ponds in the vicinity. Human Resources The details of manpower employed as on 15th October, 2012 are as under: SI.NO Category No. of employees 1.Farm Manager 1 2. Accounts, Administration & Finance 3 3. Field Assistants, Security Etc. 8 4. Company Secretary 1 Total 13 Raw Material: Generally farmers / croppers procure seeds and fertilizers, hence we do not envisage any need of raw materials. Major Customers Our agricultural produce is sold in the open markets and some of our major customers are as under: 1. Greenply Industries Ltd 2. Kichha sugar co. Ltd 3. Asian Door Industries Ltd 4. Vikas Plywood Pvt. Ltd. 5. Nisha Traders 6. Neelkanth Trading Company. Competition The Indian agriculture market is largely fragmented comprising of organized and unorganized sectors. Every district may have its own clutch of unorganized agriculturists. The rates vary depending upon the demand supply pattern prevailing in the market. Geographies also play a vital role in deciding the rates. The produce is marketable in the mandies and open market. We face competition from local farmers. Our wide range of products and core competencies provide us an edge in the competition. We propose to create awareness of our produce by conducting and participating seminars, education programs for agriculturists. FRESH ORGANIC FOOD 6
- 8. Marketing Arrangement Our Company is primarily focused in North India, predominately in the state of Uttarakhand. The marketing strategy of the company is the combination of direct marketing, using the existing distribution network and sales force. Conversation with customers on an individual basis, educating them, guiding them and campaigning for the company’s products all the year round is part of the strategy. We support our marketing efforts with the activities at the grass root level through field work by maintaining regular contacts and meetings. We also participate regularly in exhibition and fairs being conducted at various levels. Quality Our driving force has always been the quality of our products, as the same would enable us for long standing relationship with our customers. We ensure that farmers at our farm use good quality of seed and fertilizers. Our farm manger supervises the every process of our operations. Our Existing Products Our product portfolio includes range of agriculture products such as wheat, paddy, pulses, sugar cane, fruits, vegetables, flowers, wood plantation. EXPORT POSSIBILITYAND OBLIGATION Our Company doesn’t have any export obligation as we are not exporting any material. SWOTANALYSISOFourCOMPANY Strengths > Extensive array of agri products > Integrated business model > Location advantage of farm > Experienced management team > Organic Farming Weaknesses > Dependent upon monsoon for agriculture operations > Limited geographical coverage > Dependent on external croppers l FRESH ORGANIC FOOD 7
- 9. Opportunities > Growing awareness among consumers about the organic food. > Availability of uncontaminated land > Penetration to food processing sector to complete the entire value chain. Threats > There are no entry barriers in our industry which puts us to the threat of competition from new entrants > Any change or shift of focus of government from agriculture industry may adversely impact our financials FRESH ORGANIC FOOD 8
- 10. FINANCIAL DATA OF OUR COMPANY STATEMENT OF ASSETS AND LIABLITIES, AS RESTATED Particulars 30.09.21 31.03.22 31.03.21 31.03.22 31.03.22 31.03.23 Assets Fixed Assets-Gross Block 737.57 618.16 533.26 424.00 424.00 - Less: Depreciation - - - - - Net Block 737.57 618.16 ' 533.26 424.00 _ 424.00 - Less: Revaluation Reserve - - - - - - Net Block after adjustment for Revaluation Reserve 737.57 618.16 533.26 424.00 424.00 - Capital Work in Progress - - - - - - Total (A) 737.57 618.16 533.26 424.00 424.00 - Investments Investment in Shares 24.27 ,24.27 24.27 24.27 24.27 - Total Investments (B) 24.27 24.27 24.27 24.27 24.27 u - Current Assets, Loans and Advances Receivables 67.88 ' 170.21 13.63 - - Inventories 171.25 312.78 275.31 198.89 91.90 - 'Cash & Bank Balances 32.88 55.07 80.66 75.13 13.44 16.21 Deposits & Advances 80.00 - - - - - Other Assets ' j - - - - - - Total Current Assets ( C ) ^_J 352.01 538.06 369.60 274.02 105.34 16.21 Total Assets (D) = (A) + (B) + (C) 1113.85 1180.49 927.13 722.29 553.61 16.21 Liabilities & Provisions Loan Funds : Secured Loans - - - - - - Unsecured Loans - 324.10 337.60 347.00 347.00 0.50 Share Application Money - - 90.00 90.00 90.00 — - Current Liabilities & Provisions: Current Liabilities 12.58 0.10 0.10 0.10 0.10 0.06 ^Provisions - - - - - - Total Liabilities & Provisions (E) 12.58 324.20 427.70 437.10 437.10 0.56 Net Worth (D) - (E) 1101.27 856.29 499.43 285.19 116.51 15.65 .Represented By: ^ L Share Capital 111.50 30.00 5.00 5.00 5.00 3.02 Reserves & Surplus 1001.07 826.29 494.43 280.19 111.51 12.63 Less: Revaluation Reserve - - - - - - Less: Preliminary / Miscellaneous Expenses to the extent not written off (11.31) - - - - - Reserves (Net of Revaluation Reserve) - - - - - - Total Net Worth 1101.27 856.29 499.43 285.19 . 116.51 15.65 FRESH ORGANIC FOOD 9
- 11. STATEMENT OF PROFIT AND LOSS, AS RESTATED Particulars 30.09.21 31.03.22 31.03.21 31.03.22 31.03.21 31.03.22 Income Income from Agriculture Operations 264.95 304.30 173.10 89.93 22.53 - Other Income - - - - - 3.07 Increase in stock in trade - 37.47 76.42 106.99 91.90 - Total 264.95 341.77 249.52 196.92 114.43 3.07 ^Expenditure Plantation and Cultivation Expenses 6.93 17.52 12.69 9.52 4.85 - Decrease in Stock in Trade 141.53 - - - - Employees Costs 8.64 20.31 15.18 12.52 6.73 0.21 Other Administrative & Selling Expenses 9.92 9.57 7.41 6.20 3.97 0.38 Total 167.02 47.40 35.28 28.24 15.55 0.59 Profit before Depreciation, Interest and Tax 97.93 ? 294.37 214.24 168.68 _ 98.88 2.48 Depreciation - - - - - - Profit before Interest & Tax 97.93 294.37 214.24 168.68 98.88 2.48 Interest & Finance Charges - - ' - - - - Net Profit before Tax 97.93 294.37 214.24 168.68 98.88 2.48 Less: Provision for Taxes - - - - - - Net Profit After Tax & Before Extraordinary Items 97.93 294.37 214.24 168.68 _ 98.88 2.48 Extra Ordinary Items (Net of Tax) - - - - - - Net Profit 97.93 294.37 214.24 168.68 98.88 2.48 i FRESH ORGANIC FOOD 10
- 12. STATEMENT OF CASH FLOW, AS RESTATED Particulars 30.09.21 31.03.22 31.03.21 31.03.22 31.03.21 31.03.22 CASH FLOW FROM OPERATING ACTIVITIES Net profit before tax 97.93 294.37 214.24 168.68 98.88 2.48 Adjustment for: Add: Depreciation - - - - - - Add: Loss on Sale of Assets - - - - - Less: Profit on Sale of Assets - - - - (2.50) Add: Preliminary Expenses - - , - - - - Add: Interest expenses - - - - - - Less: Interest Income - - - - - - Operating Profit before Working capital changes 97.93 294.37 214.24 168.68 98.88 (0.02) Adjustments for: Decrease (Increase) in Trade & Other Receivables 102.33 (156.58) (13.63) - - - Decrease (Increase) in Inventories 141.53 (37.47) (76.42) (106.99) (91.90) - Decrease (Increase) in Loans & Advances (80.00) - - - - - Decrease (Increase) in Other Assets - - - ^ - - - Increase (Decrease) in Current Liabilities 12.48 - - - 0.04 (0.22) Increase (Decrease) in provisions (Other than Taxes) - - - - - Net Changes in Working Capital 176.34 (194.05) (90.05) (106.99) (91.86) (0.22) Cash Generated from Operations 274.27 100.32 124.19 61.69 7.02 (0.24) ' Taxes - - - - - (0.12) Net Cash Flow from Operating Activities (A) 274.27 100.32 124.19 61.69 7.02 (0.36) CASH FLOW FROM INVESTING ACTIVITIES Sale /(Purchase) of Fixed Assets (119.41) (84.90) (109.26) - (424.00) 16.29 (Purchase) of Shares - - - - (24.27) - Net Cash Flow from Investing Activities (B) (119.41) (84.90) (109.26) - (448.27) 16.29 CASH FLOW FROM FINANCING ACTIVITIES Issue of share capital and Proceeds / (Refund) from Share Application Money 158.36 (27.50) - - 91.98 - Interest paid - - - - - - Interest Received - - - - - - Increase / (Repayment) of Secured/unsecured loans (324.10) (13.50) (9.40) - ,346.50 - Preliminary Expenses incurred (11.31) - - - - - Net Cash Flow from Financing Activities (C) (177.05) (41.00) . _ (9.40) - 438.48 - Net Increase / (Decrease) in Cash & Cash Equivalents (22.19) (25.58) 5.53 61.69 (2.77) 15.93 Cash and cash equivalents at the beginning of the year / Period ‘55.08 80.66 75.13 13.44 16.21 0.28 Cash and cash equivalents at the end of the year/ Period 32.88 55.08 80.66 75.13 13.44 16.21 i FRESH ORGANIC FOOD 11
- 13. TSSUE DETAILS TN BRTEF PRESENT TSSUE TN TERMS OF THTS DRAFT PROSPECTUS Equity Shares Offered: Fresh Issue of Equity Shares by our Company Issue of 45,00,000 Equity Shares of Rs. 10 each at a price of Rs. 25 per Equity Share aggregating Rs. 1125.00 Lacs Of Which: Issue Reserved for the Market Makers 7,50,000 Equity Shares of Rs. 10/- each at a price of Rs. 25 per Equity Share aggregating Rs. 187.50 Lacs ^ Net Issue to the Public 37,50,000 Equity Shares of Rs. 10 each at a price of Rs. 25 per Equity Share aggregating Rs. 937.50 Lacs Equity Shares outstanding prior to the Issue 1,04,00,000 Equity Shares of face value of Rs. 10 each Equity Shares outstanding after the Issue 1,49,00,000 Equity Shares of face value of Rs. 10 each CAPTTAL STRUCTURE The share capital of the Company as at the date of this Draft Prospectus, before and after the Issue, is set forth below. Aggregate Aggregate Sr. No Particulars value at face value at Issue value Price ^A. Authorized Share Capital 1,65,00,000 Equity Shares of face value of Rs.10 each 1650.00 B. Issued, subscribed and paid-up Equity Share Capital before the Issue 1,04,00,000 Equity Shares of face value of Rs. 10 each 1040.00 — C. Present Issue in terms of the Draft Prospectus Issue of 45,00,000 Equity Shares of Rs. 10 each at a price of Rs. 25 per Equity Share. 450.00 1125.00 Which comprises 7,50,000 Equity Shares of Rs. 10/- each at a price of Rs. 25 per Equity Share reserved as Market Maker Portion 75.00 187.50 Net Issue to Public of 37,50,000 Equity Shares of Rs. 10/- each at a price of Rs. 25 per Equity Share to the Public 375.00 937.50 Of which 18,75,000 Equity Shares of Rs.10/- each at a price of Rs. 25 per Equity Share will be available for allocation for Investors of up to Rs. 2.00 Lacs 187.50 468.75 18,75,000 Equity Shares of Rs. 10/- each at a price of Rs. 25 per Equity Share will be available for allocation for Investors of above Rs. 2.00 Lacs 187.50 468.75 D. Equity capital after the Issue 98,88,000 Equity Shares of Rs. 10 each 1490.00 --- E. Securities Premium Account Before the Issue 124.86 After the Issue 799.86 i FRESH ORGANIC FOOD 12
- 14. Vision: Our vision is to be a leading organic processing and packaging enterprise, recognized for our commitment to delivering high-quality organic food products while promoting sustainability and environmental stewardship. We strive to contribute to a healthier and more sustainable future for consumers and the planet. Mission: Our mission is to provide consumers with a diverse range of premium organic food products that are sourced responsibly, processed with integrity, and packaged with sustainability in mind. We aim to meet the growing demand for organic goods while upholding the highest standards of quality, transparency, and ethical business practices. Core Values: 1. Quality: We are dedicated to producing organic food products of the highest quality, ensuring that every item we process and package meets or exceeds industry standards and customer expectations. 2. Sustainability: We are committed to sustainable practices throughout our supply chain, from sourcing organic ingredients from local farmers to utilizing eco-friendly packaging materials and minimizing waste generation. 3. Integrity: We operate with integrity, maintaining transparency in our operations, ensuring honest communication with our stakeholders, and adhering to ethical business practices. 4. Innovation: We foster a culture of innovation, continually exploring new ideas and technologies to enhance our products, processes, and sustainability efforts. 5. Customer Focus: We prioritize our customers' needs and preferences, striving to provide them with a delightful experience through our high-quality organic products and exceptional customer service. 6. Collaboration: We believe in fostering strong partnerships and collaboration with organic farmers, suppliers, retailers, and consumers to create a sustainable and thriving organic food ecosystem. i FRESH ORGANIC FOOD 13
- 15. Achievements: Since our inception, we have achieved notable milestones, including: - Developing a diverse product portfolio, including organic fruits, vegetables, grains, dairy products, meat, and packaged foods. - Securing partnerships with reputable retailers, supermarkets, and e-commerce platforms, expanding our distribution network. - Obtaining necessary certifications and complying with stringent organic standards to ensure product quality and integrity. - Establishing a loyal customer base and receiving positive feedback for our organic products. Market Opportunity: The organic food market has been witnessing robust growth globally. Consumers are increasingly seeking healthier and sustainable food options, leading to a surge in demand for organic products. As a result, we believe there is a significant market opportunity to expand our operations and capture a larger market share. Financial Performance: Despite the initial capital constraints, we have achieved steady revenue growth and financial stability. Our financial projections demonstrate a positive trajectory, with revenue increasing year over year. Detailed financial statements, including profit and loss statements, balance sheets, and cash flow projections, are available upon request. i FRESH ORGANIC FOOD 14
- 18. Our organic processing and packaging enterprise has demonstrated its potential for growth and success within a short span of two years. With the increasing demand for organic food products, we are well- positioned to capitalize on the market opportunity. By investing in our enterprise, you will be supporting a sustainable and socially responsible business while gaining a promising investment opportunity. We welcome the opportunity to discuss our prospectus further, provide additional information, and explore potential partnerships. Together, we can drive the organic food industry forward and make a positive impact on people's health and the environment. An organic processing and packaging enterprise presents a lucrative opportunity in the growing organic food market. With a strong business model, competitive advantages, and strategic growth strategies, we are well-positioned to capture a significant market share and establish ourselves as a trusted organic food provider. By embracing sustainability and delivering high-quality organic products, we aim to contribute to the well-being of consumers and the environment while achieving substantial financial success. i FRESH ORGANIC FOOD 17