Financial Scheme Proposal for Youth Tea Processing and Packaging Cooperative

Financial Scheme Proposal for Youth Tea Processing and Packaging Cooperative

Scheme Name: Youth Empowerment in Tea Processing

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1. Executive Summary

This financial scheme proposal outlines the funding requirements for establishing a tea processing and packaging cooperative, aimed at empowering unemployed youth in Sivasagar. The proposal includes details on fixed capital, working capital, machinery, furniture, fixtures, and a repayment schedule.

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2. Funding Requirements

Total Funding Required: INR 15,00,000

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3. Breakdown of Costs

A. Fixed Capital Expenses:

• Machinery and Equipment:
  • Tea Leaf Processing Machine: INR 6,00,000
  • Packaging Machine: INR 3,00,000
  • Quality Control Equipment: INR 1,00,000
  • Total Machinery Cost: INR 10,00,000
• Furniture and Fixtures:
  • Office Furniture (desks, chairs, etc.): INR 50,000
  • Storage Racks and Shelving: INR 30,000
  • Miscellaneous Fixtures: INR 20,000
  • Total Furniture and Fixtures Cost: INR 1,00,000

Total Fixed Capital Cost: INR 11,00,000

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B. Working Capital Expenses:

• Raw Materials (Tea Leaves): INR 1,50,000
• Packaging Materials: INR 50,000
• Utilities (Electricity, Water, etc.): INR 30,000
• Salaries (for initial 3 months): INR 2,00,000
• Miscellaneous Operating Expenses: INR 20,000

Total Working Capital Cost: INR 4,50,000

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4. Funding Sources

• Bank Loan Request: INR 15,00,000
• Cooperative Member Contribution: INR 2,00,000 (to be raised from cooperative members)

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5. Repayment Schedule

Year	Principal Payment	Interest Payment	Total Payment
Year 1	INR 2,00,000	INR 60,000	INR 2,60,000
Year 2	INR 2,00,000	INR 48,000	INR 2,48,000
Year 3	INR 2,00,000	INR 36,000	INR 2,36,000
Year 4	INR 2,00,000	INR 24,000	INR 2,24,000
Year 5	INR 2,00,000	INR 12,000	INR 2,12,000
Total	INR 10,00,000	INR 1,80,000	INR 11,80,000

Interest Rate: Assumed at 6% per annum.

Loan Tenure: 5 years.

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6. Revenue Projections

• Monthly Revenue from Tea Sales: INR 1,00,000 (estimated based on local market demand)
• Annual Revenue Projection: INR 12,00,000

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7. Conclusion

This financial scheme aims to secure a total funding of INR 15,00,000 to establish a tea processing and packaging cooperative. The cooperative will create job opportunities for youth, boost local tea production, and contribute to the economy of Sivasagar. With a well-structured repayment plan and projected revenues, the cooperative is poised for sustainable growth and profitability.

Attachments

• Business Plan
• Cooperative Registration Documents
• Member Details
• Market Analysis Report

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