Among the highest interest and dividend paying corporates are agro-based companies. Advertisements in prestigious newspapers promising to convert thousands into lakhs in 20 odd years are a familiar sight.They grow teak, rubber and similar plantations. The promised rate of interest payable for fixed deposits by post-dated cheques is very high.

Most of these companies are locating their teak/rubber farms in high rain areas, where land and labour is comparatively costlier. Consequently, the returns are bound to be limited. However, if some clever entrepreneurs turn their attention to the dry land areas, the returns will be definitely higher. There are a number of reasons behind it.

First, land, nearly barren, is very cheap and available at throwaway prices. Second, since farming or cropping in such areas is done every third year, plenty of idle agricultural labour is available at low rates bringing down the labour cost drastically.

The plants that can be grown in such areas are not influenced by lack of water or irrigation, that is, they are famine resistant. This reduces the chances of any loss.

Such plantations are also widely accepted; their products is in great demand. In fact, there is a lucrative ready market.

The plants suggested are the `kalptary' of desert `khejari' and equally important `ker'. The `sangaries' that grow on `khejari' are sold at a price of Rs 40 per kilogramme and `ker' is sold anywhere near Rs 80 to 100 per kilogramme. Both these products are very nourishing and palatable and extremely good for health. On ripening these products, turn into `khokhas' and `dhaloos'- the `meva' of dry fruits of desert.

The average annual yield of one khejari tree is around 125 kg which will give 30 kg of prepared and ready-to-sell sangaries, fetching Rs 1,200 by a conservative estimate.

One acre of land which consists of two-and-a-half bighas or 4,840 sq yards will accommodate nearly 10,000 khejari trees. This means that the harvest will fetch a staggering 1,200 x 10,000 i.e. Rs 1,20,00,000.

In between these khejari trees, `ker' can be planted. Each ker tree will yield a harvest of 10 kg thrice a year. This means an annual yield of 30 kg.Thirty kilogramme of ker will fetch at least Rs 1,000 at a very low price of Rs 33 per kilo. Thus, 10,000 trees would fetch a whopping Rs 10,000,000.

The figures are mind-boggling. Nevertheless, they are true. It is also well-known that khejari and ker grow better and give better products during drought periods.

Now, if the cost of land is considered (it is very low in dry land areas), at the upper limit, it would cost Rs 10,000/- per bigha or Rs 25,000 per acre.

The cost of maintenance is minimal; these trees grow by themselves requiring little attention. Fencing would cost Rs 1 lakh and a security guard is easily available at Rs 12,000/- per year (Rs 1,000 per month). The security guards can also double as the maintenance in-charge as well.

-- Kan Singh

The writer is in a position to provide 100 acres of land at the above rates in the most suitable place.For enquiries, please write to: FE Enterprise, The Financial Express, Express Building, 9 & 10, Bahadurshah Zafar Marg, New Delhi-110002. Fax: 3739821, 3716037.

Through the kitchen rake in the moolah

A good buy is one that is cheap, clean and correct when it comes to quality and quantity. But in our country we get it only cheap - cheap quality but not cheap rates. This is more so with grocery and kitchen nick-nacks which are mostly sold loose and have no quality standards with adulteration as the hallmark.

Despite all claims of development, we have not been able to give quality in food. In fact, our greatest irony has been that a cell-phone wielding man in liberalised India still shouts at his wife when bits of stones find their way into his mouth with the good taste of urad dal.

Though many big players have entered the field of packed masalas, atta and even frozen vegetables, the idea has not been picked up in pulses. Some shops, like Roopak Stores in Delhi's Karol Bagh or Super Bazar outlets, however, do provide this facility. But while the former is limited by location, the latter is limited by quality.

Networking is the most important thing for making this idea a success since in this business, your profits are solely dependent on the quantity you sell. Never keep your profit margin high since your customers may switch back to buying loose stuff if the rates start pinching their pockets.

Among the clients can be shops and individuals though pricing for them will be different - while former can be given a percentage share, to the latter it should be at the market rate. You can even target relatives, friends and neighbours for a beginning. But the best target can be the working class which cannot devote much time to cooking and cleaning.

Buy different pulses at wholesale rates. Engage two persons (the number can be increased later when the business expands) to clean the pulses thoroughly. At this point, your supervision is essential. Remember it is quality that you are promising and not just packaging. Surprise random checks on your workforce should be conducted frequently though not predictably. After the stuff has been cleaned and checked, the same persons can be asked to pack them into polythene packets of various sizes. You can fix the quantity at 500 gm, 1 kg and 2 kg. But most people prefer to buy 1 kg packs. The packs should then be carefully sealed. As far as marketing is concerned, leave it to no one - entry can be made only by you. But later as market for your brand grows, you will need some dealers, even ones stationed out of town. Caution is needed at this stage. The packets should be tamper proof so that no one sells inferior stuff using your good name.

In the whole process, the moment you feel that the range of things can be expanded, do it. You can even take cue from your customers and friends. Remember, changing lifestyles means changing tastes. Things like sprouted pulses, paneer, mushrooms, chivrata, ginger-garlic paste, jeera, mustard grains and dry fenugrain leafs can also be included in your grocery list for others.

-- Jyoti Sharma

Share your ideas

Do you have an interesting business idea that will work? Have you seen a business idea carried successfully to its logical conclusion by a friend, relative or colleague? Or, are you a close corporate watcher, who delights in spreading light and wisdom within your circle of business friends? Even if you are none of these, if you do have a business idea and are confident it will click if somebody else is able to muster the will and resources to give it a serious try, write to us. FE Enterprise's mission is to spread the entrepreneurial culture. We offer you an opportunity to participate in this endeavour by publishing the best business ideas every Tuesday. The best idea of the month—as judged by the Editor—will earn a cash reward of Rs 1,001.

Please send your write-ups to: FE Enterprise, The Financial Express, Express Building 9-10, Bahadur Shah Zafar Marg, New Delhi - 110002. Fax: 3739821, 3716037

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.