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  Home » Agribusiness Value Chain » Vermiculture Business Development

Vermiculture Business Development

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.