Himachal Horticulture


As part of pre-investment support, ABPF have scanned the market for potential opportunities for entrepreneurs in Horticulture sector in Himachal Pradesh. Based on this ABPF has undertaken in-depth study of individual business opportunities and prepared a docket with bankable projects defining the investment needs and potential that could be taken up by the entrepreneurs. ABPF has prepared generic business plans for the identified investment opportunities which comprises of technical, financial and environmentally sustainable parameters. These business plans are generic and for optimal capacities which can be fine-tuned to the scale, investment, technology needs of the entrepreneur.


Pomegranate and Plum Processing Unit

In lower and mid hills of HP, recent trend is to cultivate fruits,such as pomegranate and kiwi, and vegetables, such astomato, peas and cauliflower, a shift from traditional applecultivation focusing the crops that require lesser chillinghours. One of the key factors contributing to greatercultivation of pomegranate in HP, is the prevalence of highertemperatures, especially in the Low and mid- altitude regionsof Kullu, Shimla and Mandi districts. Warmer temperaturesduring winters have reduced the chilling hours for apple trees.

Since plums have a limited shelf life, it has been observed that 40-45% of fresh produce was lost due to limited post-harvestintervention. Plum growers are well aware of this fact. This has made procurement of B and C grade plums from blocks likeNaggar, Kullu, Banjar and Sadar very easy and thus, has become a readily available source for processing

Business Model

❖ Discussions and meetings with growers and lead farmers and development of farmer's network for procurement.
❖ Lead Farmer Model: Establishment of Procurement Network by following lead farmer model. The lead farmer willbe responsible for supply of fruits to the processing unit and may charge service fee. Lead farmer will send rawmaterial to factory through Bus/pick-ups (small quantities every day)
❖ Processing Centre: processing will be done for Pomegranate Juice and Plum Pulp.
❖ Packaging as per market need and marketing will be done B2B and B2C both, supply will be done to buyers/stores

Salient Features

❖ Area under pomegranate was increasing at a rate of 15% year-on-year basis (2013-2017), and production volumestouched 3148 ton in 2017-18.
❖ Naturally Healthy Super fruit juice category was valued at INR 450.82 Crore in the year 2018, in India. This sectorwill witness a CAGR of 17.6% over five years from 2018 to 2023 and swell up to double of its current size by then.
❖ Pomegranate juice command approx. 5% of the market and the market size for pomegranate juice in India can bevalued at INR 50.6 Crore by 2023.
❖ Himachal ranked second in plum production in India, with an annual production of 20,520 MT, for 2017.In 2016-17, Kullu produced 13,665 MT of Plum and contributed to around 66% of the total Plum produced in HP.
❖ In HP total area under Plum was 8,683 ha in 2017-18. Area under plum is consistently increasing in HP.

Suitable Location

Business Plan for average ticket size

Investment (Approximate)

❖ Utilized Capacity (ist year): 2 MT pomegranate per day; 24o MT processed over 120 days and 1 MT plum per day;120 MT processed over 6o days
❖Project Cost Rs.58.20 lakh
❖ WC requirement Rs.29.3o lakh
❖ Retail price Rs. 8o/liter for pomegranate juice and Rs. 25/ liter for Plum pulp

Returns (Approximate)

❖ Profits (ist year): INR 19.78 lakh
❖ IRR: 32.7
❖ DSCR: 2.0
❖ Break-even period: 0.9 years