Combined_Harvester_ Bankable Project.pptx

Bankable project on combined harvester

1. Bankable Project on Combined Harvester Resources, Cost, Financial Statements & Feasibility Analysis

2. Introduction • A combined harvester is a multi-crop machine used for harvesting, threshing, and cleaning. • Reduces labor cost and time. • Provides custom hiring services to farmers. • A profitable investment for agri-entrepreneurs.

3. Project Objectives • Promote mechanization in agriculture. • Provide timely harvesting services. • Generate employment and income. • Ensure financial sustainability and profitability.

4. Resources Required • Capital investment: ₹25,00,000 (new harvester). • Human resources: Operator, helper, mechanic. • Fuel and lubricants. • Maintenance and repairs. • Land/garage for storage.

5. Cost Structure • Fixed Cost: Machine purchase ₹25,00,000. • Margin money: ₹6,25,000. • Loan component: ₹18,75,000 @ 10% interest. • Variable Cost: Fuel, labor, repairs ≈ ₹4,50,000/year.

6. Revenue Model • Custom hiring rate: ₹2,500 per acre. • Annual coverage: 400 acres. • Total annual revenue ≈ ₹10,00,000. • Net annual cash inflow ≈ ₹5,50,000.

7. Cash Flow Statement (Summary) Year | Revenue (₹) | Expenses (₹) | Net Inflow (₹) 1 | 10,00,000 | 4,50,000 | 5,50,000 2 | 10,00,000 | 4,50,000 | 5,50,000 3 | 10,00,000 | 4,50,000 | 5,50,000 4 | 10,00,000 | 4,50,000 | 5,50,000 5 | 10,00,000 | 4,50,000 | 5,50,000 6 | 10,00,000 | 4,50,000 | 5,50,000 7 | 10,00,000 | 4,50,000 | 5,50,000

8. Income Statement • Revenue: ₹10,00,000/year. • Operating expenses: ₹4,50,000. • Depreciation: ₹1,50,000. • Net profit: ₹4,00,000/year (approx).

9. Balance Sheet (Summary) Assets: • Harvester value (depreciated) • Cash from operations Liabilities: • Bank loan outstanding • Interest payable

10. Profitability Ratios • Benefit Cost Ratio (BCR): 1.8. • Internal Rate of Return (IRR): ~18–20%. • Net Present Value (NPV): ₹9,00,000. • Payback period: 4–5 years.

11. Loan Repayment Schedule (7 Years) Year | Loan Outstanding (₹) | Installment (₹) 1 | 18,75,000 | 3,75,000 2 | 15,00,000 | 3,75,000 3 | 11,25,000 | 3,75,000 4 | 7,50,000 | 3,75,000 5 | 3,75,000 | 3,75,000 6 | 0 | -

12. Feasibility Analysis • NPV > 0 ⇒ Project is profitable. • IRR (18–20%) > Cost of capital (10%). • BCR > 1 ⇒ Project is viable. • Strong financial feasibility for bank loan.

13. Findings • Combined harvester project generates consistent annual revenue. • High profitability and short payback period. • Loan repayment is feasible within 5 years. • Provides sustainable income for entrepreneurs.

14. Conclusion • Investment in combined harvester is financially viable. • High IRR and positive NPV ensure profitability. • Suitable for bank financing and farmer entrepreneurship. • Promotes agricultural mechanization and rural development.

15. References • ICAR reports on farm mechanization. • NABARD model project reports. • Tractor and Machinery Dealers' Price Lists. • Agricultural Finance Corporation data.