BUSINESS PLAN

For 1st of September 2011 to 2041 To establish and operate BLYNK FLOWERS On 80 acres of land.

Prepared by: Tom and Nicole(R.A&S Group) Date: 3rd of june,2011 Mailing address: Level 14 & 15, Concorde Towers, UB City 1 Vittal Mallya Road Bangalore 560001 India +91 (80) 403 000 +91 (80) 407 000

1.EXECUTIVE SUMMARY:

We R.A&S group who are into food and agro based business are venturing into floriculture which is related to our original business or we can simply say that we are expanding or defining our business. This business plan outlines the plan to establish and operate a 80 acre cut flower greenhouse operation, producing and selling quality roses, freesia and other numerous types of flowers. The business will operate as a partnership under the business name of BLYNK flowers. This setup would come up in Ramanagaram, which is in the outskirts of Bangalore. We selected this location due to various logistical advantages it provides and is just 30 kms away from Bangalore and is located on BangaloreMysore highway. BLYNK flowers will cater to the demand for flowers in the country; we are also into flower retail i.e. we will have our own walk-in stores and online sites where flowers can be ordered and delivered at the doorstep.

Timing of the project will be full establishment of the greenhouse within 10 months from the approval of funding by lending agencies.

1.1OBJECTIVES: The management after researching thoroughly about floriculture market and its potential growth in future is committed to take up the challenges and strive for glory. We are confident that the business will generate good revenue through our unique approach to this business. y To be a leader in the domestic market and one of the leading players in the continent. y To develop and build equity to the brand flowers for all through excellent and attractive promotional measures.

1.2MISSION STATEMENT : To establish and operate a cut flower greenhouse operation producing and selling quality flowers of all kinds irrespective of seasons to contract buyers, customer walk-ins and retail flower shops.

1.3MARKET NAD PROJECTIONS: The Indian floriculture industry is poised for high growth and that is the opinion of most experts in the field. Enormous genetic diversity, varied agro climatic conditions, versatile human resources etc, are certain factors that contribute to it. The exports have registered an impressive growth from Rs 18.83 crore in 1993-94 to Rs 298.57 crore in 2005-06. We believe Floriculture is a fashion driven industry where the trends evolve and vanish in quick succession. The golden rule is to be innovative and constantly evolve novel ideas.

2. The company summary: 2.1 COMPANY OWNERSHIP: The company is run by a group of three members under partnership. All individuals are qualified and professionals who are determined to take the business to the top position in the industry. Name %of share in the Management role company Mr. Abhilash gowda 51% Owner & H.R. manager Mr. Sunil kumar 25% Owner & marketing manager Mr. Rahul 24% Owner, finance and production belgundkar manager 2.2 START-UP SUMMARY: The approximate capital required to start the business is around Rs.150 Cr. of which Rs.45 Cr. is contributed by the owners. The company has already got 40 acres of land which is owned by the owners and the same would be used as the collateral for the loan. The bank has sanctioned the loan of Rs. 60 Cr. and the remaining capital of 45 Cr. is open for investors.
PARTICULARS AMOUNT IN CRORES.

Land 40 acres (40*2) Buildings Fencing Compound around the area Greenhouse facility Temperature control and other technology equipments. Bore wells and construction of tanks for water Raw materials (seeds, stems, manure etc..) Transportation vehicles Walk-in stores/stalls

80 5 0.30 0.20 15 5 2 1.50 2 3

Online network setup and services Insurance Marketing and distribution agency Legal expenses Office expenses and infrastructure Advertising and promotions Cooler and packing area Total Cash in hand

3 5 1 0.50 5 1 3 132.50 17.50

2.3

COMPANY LOCATION AND FACILITIES:

BLYNK flowers is located in Ramnagaram on the outskirts of Bangalore. We chose this location because of its strategic advantage and weather which is convenient to floriculture. The location is situated near Bangalore-Mysore state highway.

3. The product and services: 3.1.Product and service description:  The various types of flowers we produce are vast and some of them are: Pink Primrose, Partridge Pea, Privet Tree, Pineapple Lily, Pansies, Madonna Lily, Mountain Laurel, freesia, Lemon Mint, Lady's Mantle, Lavender, Rose, Jasmine.  We have formulated excellent distribution channels and have walk-in stores across all major cities in prime areas to cater to the decorative flower market demand.  We also have online ordering where the flowers will be delivered within hours of the order.  In our websites we offer various product categories such as BLYNK regular, premium and royal collections.

4. MARKET ANALYSIS:

4.1. COMPETITIVE ANALYSIS:

Name of the company Jane s flowers Rose gardens

Market share 15 25

Tilia

35

Nexus florists

15

Competitive advantage Newly established business Mass produced, poor quality low price Good location and sales contacts Large number of buyers for product. High quality and high price

Target market/ method of sale Private contract, Walk-in Private contract, wholesale and outlets Private contract, outlets, walk-in and wholesale Select shops and walk-in

We would like to analyze our competitive market and make our way through by identifying opportunities and building on competitor s weakness. One of our target markets would be first of its kind and unique where in we sell and deliver flowers through online websites.

4.2 MARKETING PLAN Market analysis summary (the macro parameters) Political: Currently favorable and stable environment from which the industry has got constant support and many would expect the same for years to come. Economic: As the economy is doing well particularly the floriculture industry we can expect stable and normal growth rate from the business and the

industry as well. The industry growth rate has nearly doubled since the last decade. Export options are always bright in the business and we foresee it as our future option very soon. Social: Flowers are used for numerous purpose across the nation and it holds a symbolic value in minds of the people. The trend for different types and colors of flowers are on rise, particularly the decorative flower market. Technological: Many hybrid decorative flowers is the current need and this can be fulfilled by adopting various technological parameters. We have also online stores and we feel the market is still open and uncapped.

4.3 SWOT analysis: Strengths: y y y y y Very suitable topography location for the flowers. Good transportation facility and infrastructure around the area. Very high growth rate of the industry. Availability of technology. Various seasonal flowers .

Weakness : y Lack of relative expertise in the business. y Contacts and distribution channels should be frequently taken care off. Opportunities: y Huge market which is not organized. y Export markets look attractive. y Expansion of business. Threats: y Due to global warming deteriorating weather conditions. y Increase in competition due to many players in the industry.

5. MARKETING AND SALES PLAN:

5.1 PRICING: Cut rose (based on 230 stems for 100 sq.ft) Customer Wholesale Cash and carry Price per stem Rs. 3 Rs. 5 Direct cost per stem Rs. 1.20 Rs. 1.50 Gross margin per stem Rs. 1.80 Rs. 3.5 Gross margin per 100 sq.ft Rs. 414 Rs.805

Lavender and freesia (based on 36 bunches for 100 sq. ft) Customer Price per bunch Rs. 35 Rs. 50 Direct cost per bunch Rs. 8.30 Rs. 9 Gross margin per bunch Rs. 26.7 Rs. 41 Gross margin per 10 sq.ft Rs. 961.2 Rs. 1476

Wholesale Cash and carry

Decorative flower pricing at website : BLYNK regular ---------- 0 to 500 BLYNK premium- ------- 500 to 1000 BLYNK royal ------------- 1000 to 2500

5.2 Advertising and promotion: Method of promotion Trade show booth Local radio station Samples, donated products for annual flower arrangement competition Community newspaper ads, signs and boards Direct mail and brochures Target customers Whole sale and retail buyers Cash and carry, online buyers Wholesale and retail buyers

Cash and carry, online buyers Wholesale and retail buyers

6. The management team:

6.1Organization structure:
Mr.Abhilash Gowda (M.D & C.E.O)

Mr.S.Sunil Kumar (Dir. Of H.R. and Marketing)

Mr.Rahul Belgundkar (Dir. Of finance and operations)

Mr. Sharath Kumar (Dir. Of Sales)

6.2Key management personnel: Mr. Abhilash Gowda: (M.D & CEO) Is one of the directors at the R.A&S group and has got 15 years of experience in successfully running the fruits business of the group and has played very important role in bringing profits to the groups previous ventures. Mr. Abhilash has got his P.G. degree in agriculture from university of Nottingham, U.K. and owns the majority of the stake in BLYNK flowers. Mr. S.Sunil kumar: (Dir. Of H.R.& Marketing) Is the member of director for the R.A&S group and heads all the marketing and human resource management in the group. He has also taken the responsibility to head the division of H.R. and Marketing in BLYNK flowers. Mr. Sunil holds P.G. degree in H.R.&Marketing from Cornell University, U.S.A and holds 25% of the stake in BLYNK flowers. Mr. Rahul Belgundkar: (Dir. Of finance and operations) Is again the member of director for the R.A&S group and heads all the finance related matters in the group and is known for his decision making skills and understanding and he takes the responsibility of heading finance and operations in the business. Mr Rahul holds P.G. degree in finance from IIPM.

All the members are committed and have the expertise to complete their mission and are confident in making BLYNK flowers one of the leaders in the industry.

7. Financial analysis:

PARTICULARS LESS Revenue EXPENSES: Salaries internet & other expenses Depreciation office Stationary Consultation Charges Flower Stock Maintenance Exp Insurance Premium Bank Charges Misceleneous Exp Start Up Expenses Total Expenses EBIT Interest EBT Tax (25%) Retained Earnings Gen Reserves Net Profits

Amt. in Cr Year 1 Year 2 Year 3 65.45 80.50 90.75 6 0.5 1.5 0.25 0.6 3 2 2.5 3 0.5 35 54.85 10.6 0 10.6 2.65 7.95 2.5 5.45 6 0.3 2 0.25 0.5 2 1.5 2.5 3 0.5 35 53.55 26.95 0 26.95 6.74 20.21 2.5 17.71 6 0.3 2.75 0.25 0.5 1 1.5 2.5 3 0.5 35 53.3 37.45 0 37.45 9.36 28.09 2.5 25.59