The success of vermiculture development has been entirely due to its business viability. In the initial years beginning with a very small investment of only Rs. 5,000/-, over the years entrepreneurs have come forward to setup large scale commercial units with investment upto Rs. 5,000,000/-. By and large a majority of the business units have been able to recover their investments in 1-3 years time.
Business Model for Small Enterprises
| S. No. |
Particulars |
Investment Levels (in Rs.) |
Remarks |
| 10,000/- |
50,000/- |
100,000/- |
| 1. |
Project Details |
| 1.1 |
Annual Production Capacity (in MT) |
30-40 |
80-100 |
200-250 |
Generally self employed
units attain better efficiencies |
| 1.2 |
Work Area Required (in sq. m.) |
100 |
500 |
1000 |
| 1.3 |
Persons Employed |
Self Employed part time |
Self Employed full time |
Self and two person full time |
| 2. |
Cost of Project |
| 2.1 |
Land |
Own |
Own |
Own |
Most of the facilities are available at the farm itself |
| 2.2 |
Working Shed (local materials) |
2000/- |
10000/- |
25000/- |
| 2.3 |
Tools and Machineries |
500/- |
5000/- |
10,000/- |
| 2.4 |
Earthworms and Biological Culture |
4000/- |
20000/- |
35000/- |
| 2.5 |
Working Capital |
3500/- |
15000/- |
30000/- |
| |
Total |
10000/- |
50000/- |
100000/- |
| 3. |
Production Costs for First Year |
| 3.1 |
Raw Materials - Dung |
12500/- |
50000/- |
90000/- |
All costs have been calculated on the basis of procurement from outside |
| 3.2 |
Agriculture Wastes |
2500/- |
5000/- |
25000/- |
| 3.3 |
Salary - Wages |
- |
- |
70000/- |
| 3.4 |
Overheads |
10000/- |
30000/- |
70000/- |
| |
Total |
25000/- |
85000/- |
255000/- |
| 4. |
Economics |
| 4.1 |
Sales Realization @Rs.1500 per MT |
60000/- |
150000/- |
375000/- |
Can vary upto 20% |
| 4.2 |
Net Margin |
35000/- |
65000/- |
120000/- |
Note: The above assumptions are based on our experiences in different parts of India.
Business Development Plan for commercial units can be provided on demand.