Schematic View Of Distance Farming Value Chain

Customer Problem

• Large volume of investors is available in the range of Rs. 0.5lak to Rs 25lak; who wish to invest for a recurring income for considerable period. FurtherPolyhouse based ‘Floriculture’and ‘Horticulture’ has been in vague for its global demand and less dependency on weather and soil yield.
• Urban youth in IT, Manufacturing and other service sector, NRIs are scouting for simple but innovative investment options and wiling share excitement of to be in agriculture business; but it doesn’t get materialized due to distance
• Investment options such as Mutual Funds, Insurance, Plots, Gold and other capital markets never offer consistent and increasing recurring income for investor

Proposed Solution:

• Brain Chamber Distance Farming (BCDF) gives an opportunity to an investor to indirectly grow flowers (Poly House with Orchid, Gerbera, Rose etc.) at a particular location; systematically managed by experts from planting, maintaining, cutting, dispatching till realization of money and immediate distribution of earning in proportion to agreed terms with investors.


• No matter where you are Brain Chamber Team is systematically managing on your behalf a Poly House and sharing returns with you.

Key Indicators

• Area of One Unit: 10890Sqft(10 Guntha)
• Investment Sought – Rs.22lak - $35,000 (Group of investors also welcome- minimum investment- Rs.50000- $833)
• Set Up Cost per plant: Rs.22lak- $35,000
• Flower production per year: 22,000 units- Yr 1; 48,000 units-Yr 2 and 96,000- From Yr3-7( Orchid Flower)
• IRR per Rs.22lak/ $35,000- 13.5% PA (Investment Period 84 months; Returns Starts from 7th Month; increasing at 5% per annum)
• No. of Units planned: 100 in next 2 years from 2015

Business Model

• BCDFPL will take land from farmer/land owner on lease; only infertile land will be leased as it is a Polyhouse based business.
• We at Brain Chamber will never have fertile land for poly house instead we prefer only infertile land from farmer on lease so as to extend him monthly lease income and convert an infertile piece of land into paradise for all stakeholders
• There is 41 million Ha (13% of total geographical area) of barren land available in India; so huge scope to convert it into useful one
• Each unit consist of Polyhouse established on 10890Sqft (10 guntha) piece of land
• Based on level of investment each investor (minimum investment of Rs.50000) will be assigned to a particular Unit of 10 Guntha to be developed for floriculture
• Expert team (Operations, Sales and finance) will be appointed right from day zero with entire system driven approach (Planting to First Flower Cutting period cycle – 7 months)
• Investor will finance set up cost and Brain Chamber will provide working capital
• Investor will get real time updates on returns through investor window and immediate credit of corresponding share in earnings
• We treat Investor equivalent to owner of that Unit and regularly update him/her on what is happening on farm : Daily SMS on production & Sale; Investor can order production from farm, contact numbers of team member working on farm, planned visit to farm

Target Market

• Mainly export oriented business targeting European, US and UAE market through export agencies. (India’s share in export market has not yet crossed 1% also; so huge scope) Apart from above; growing at a compounded annual growth rate of about 30%, India's floriculture industryis likely to cross Rs 8,000 crore mark by 2015(As per ASSOCHAM ).

Competitive Advantage

• Attractive investment slabs (Rs.20Lak only;) for reasonably good and recurring returns
• No dependence on weather
• Quick Realization of Cash –In 20 days from date of dispatch from farm

Financial Summary

Set Up Cost FOR 10 GUNTHA: Rs.22Lak-$35,000

• Poly House Structure: Rs.7.5 lak- $11,392
• Drip Irrigation & Auto Control System- Rs.3.5 lak-$5,568
• Fabrication and other auxiliary set up- Rs.1.8lak-$2,863
• Plantation Cost – Rs.8.4lak-$13,364
• Other Misc & Contingency- Rs.0.8lak-$1,273
• TOTAL: Rs.22lak-$35,000

Above set up cost to be arranged through investor’s funds

All other working capital requirement toward manpower, consumables, packing and transporting will be met by Brain Chamber(This varies between Rs. 3 to 5 lak per year; higher in year 1)

• Lease cost per year: Rs.20,000 per year
• Seeds, fertilizers and other operating expenses per year : Rs.1,88,940 per year
• Agency commission and other misc. expenses: Rs. 50,912 per year
• Total Expected Production: 22,000 units- Yr 1; 48,000 units-Yr 2 and 96,000- From Yr3-7(Orchid flower)
• Avg. Sale price per flower: Rs. 14
• Total Income: Rs.3,09,120 – For Yr-1
• Net Income : Rs.49,268– For Yr-1
• Production will increase from year 2 and hence income
• An inflation of 5 % has been considered on both expense elements and sale price

Repayment Schedule

For Rs.22lak and One Unit of 10890 sqft (10 guntha):

Investment wise returns are as per Annexure- A

Exit Option

Investor can execute exit option after two year of investment; with four months prior notice before exit (i.e. Request for exit can be sent only after 24 months and exit can be processed in 30th Month not before that) On pre mature request for exit; an investor will be paid at 10% Internal Rate of Return (IRR) on invested amount not 13.5%; only for period of investment. Same will be calculated separately and not as per above repayment schedule.

Make Your Investment

Brain chamber offers System Based Investment Protocol:

• Please go through our concept and complete detailed proposal – Complete-Proposal
• Plan your visit to our Pilot Project (Every Saturday from 12:00 noon to 02: 00 pm) – Visit
• Get required clarity during site Visit and Meet
• Take decision on investment amount and make payment after signing of MoU
• Keep receiving agreed returns at a particular time interval through systematically managed operations

Way Forward

Let’s join an exciting journey of Distance Farming Revolution; follow below steps:

• Call us: +91-0231-6616949 (Time 10:00 am to 05:00 pm; Mon- Sat)for any query
• Fill investor Application form available on www.distancefarming.com
• Site Visit to Pilot Set Up near Kolhapur as per site visit protocols( Every Saturday from 12:00 noon to 02: 00 pm)
• Detailed meeting with investors at site for every micro level issues
• Sharing Key documents (7/12, lease agreement, water test report etc.) along with draft MoU with perspective investor
• Signing of MoU and payment through cheque
• Keep receiving agreed returns at a particular time interval through systematically managed operations

Our Online Presence

We appreciate importance of web based marketing and sales especially when it comes to target overseas markets; As an important milestone for future success; we have secured domains for distanceagriculture and distancefarming under:

• distanceagriculture.com
• distancefarming.com
• distancefarming.net
• distanceagriculture.us
• distancefarming.us
• distanceagriculture.uk
• distancefarming.uk
• distanceagriculture.ca
• distancefarming.ca
• distanceagriculture.cn
• distancefarming.cn

Brainchamber team has carried out an extensive research in this sector corresponding to capital expenditure, area requirements, costing, Polyhouse establishment, plantation, key success factors etc.

Our Advisory Board

We already have some of the pioneers of the industry with huge experience on our advisory board:

• Mr.Chougule- Technical Consultant – 30years of experience
• Mr.Chavan- Founder A1 flowers – 35 years of experience
• Mr.Shelar – Manager KF Bio- 10 years of experience