Department of Management Sciences

Student name: Hassan Raza, M. Khalid Aslam , M. Adeel, Shahid Amin,

Tariq Aziz, M. Anayat Ullah Khan
Student number: 10, 16, 23, 38, 44, 47
Subject: Entrepreneurship Stage/year: MBA 4th (M)
Study Mode: Full time yes Part-time

Lecturer Name: Mr. Tasawar Javed

Assignment Title: A Feasibility Study of Tunnel Farming
No. of pages: 10
Disk included? Yes No

Date due: 17/05/2010

Date submitted: 17/05/2010

Plagiarism disclaimer:

I understand that plagiarism is a serious offence and have read and understood the university policy on
plagiarism. I also understand that I may receive a mark of zero if I have not identified and properly
attributed sources which have been used, referred to, or have in any way influenced the preparation of
this assignment, or if I have knowingly allowed others to plagiarise my work in this way.

I hereby certify that this assignment is my own work; based on my personal study and/or research, and
that I have acknowledged all material and sources used in its preparation. I also certify that the
assignment has not previously been submitted for assessment and that I have not copied in part or whole
or otherwise plagiarised the work of anyone else, including other students.

Signed & dated:

Pleasenote:StudentsMUST retainahard/softcopyofALLassignmentsas

1 The Islamian Business Executives

Details of Promoter:

Name:Shahid Amin

Address: Chak # 103/DB. Tehsil Yazman, Distt. Bahawalpur

Qualification: MBA (Finance)

Work experience: Fresh Graduate

Name:Tariq Aziz

Address: Chak # 20/DNB. Tehsil Yazman, Distt. Bahawalpur

Qualification: MBA (Finance)

Work experience: Fresh Graduate

Name:M.Adeel

Address: Ward # 02. Tehsil Yazman, Distt. Bahawalpur

Qualification: MBA (Finance)

Work experience: Fresh Graduate

Name:M.Khalid Aslam

Address: Model Town C, Distt. Bahawalpur

Qualification: MBA (Marketing)

Work experience: Fresh Graduate

Name:Hassan Raza

Address: Chak # 103/DB. Tehsil Yazman, Distt. Bahawalpur

Qualification: MBA (Finance)

Work experience: Fresh Graduate

Name:M.Anayat Ullah Khan

Address: Islami Colony, Bahawalpur.

Qualification: MBA (Finance)

Work experience: Fresh Graduate

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PROJECT CONCEPT:

Vegetables are rich source of vitamins, carbohydrates, salts and proteins.

With increased health awareness in the general public and changing
dietary patterns, vegetables are now becoming an integral part of
average households daily meals. In addition, high population growth
rate has also given rise to high demand in basic dietary vegetables.
Increased health awareness, high population growth rate, changing
dietary patterns of increasingly affluent middle class and availability
of packaged vegetables, has therefore generated a year round high
demand for vegetables in the country in general and in major city centers
in particular. However, our farmers have yet not been able to encash
this opportunity and still follow traditional sowing and picking
patterns.

Pakistan population is increasing with the passage of time; with the

increase in population residential colonies/ residential area are being
increased. By this increase the agriculture land has been decrease and
every person think about how the demand of food can be satisfied. In the
absence of storage infrastructure and vegetable processing industry
in the country, off-season vegetables farming is the only viable option
that can add value to the farmer product.

Currently Opportunity

There is a huge demand for fresh vegetables in the local as well

as international markets. The facility of growing off-season vegetables
also allows for growing non-conventional varieties and vegetables,
which are in high demand in the international market. The importance of
vegetables cannot be denied due to their nutritional value. Vegetables are
used in raw form as salad or cooked food according to the taste, which
provide a balanced diet and keep human being healthy. A large number
of world population now prefer vegetables in their daily diet due to
the awareness that vegetables provide better source of energy and
nourishment to the body. By tunnel farming the production and income

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increased by 60 percent as compared to traditional farming, so it is the
best opportunity for growth and as well as profit.

Target markets & Customers:

Vegetables are included in the basic necessities, so every body uses

vegetables. Generally there are two types of markets one is local and
second is foreign, but our target market will be local because vegetables
are perishable in nature, its exporting is very risky. Our customers will be
households, hotels and restaurants through vegetable markets.

RESEARCH PROPOSAL:

What will be done under this work programme?

The proposed project is designed as a medium size off-season

vegetable farming two units, spreading over a land area of 3 acres for
each unit. Off-season vegetables, such as, tomatoes, cucumber, brinjal,
hot pepper, sweet peppers and watermelon can be cultivated viably
using walk in tunnel technology.

Process Flow Chart of Tunnel Farming:

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What will be the objective?

The ultimate objective of every business is to earn profit, so our core

objective is to earn profit by providing high quality off-season vegetables
in the local markets.

AIMS OF THE FEASIBILITY PROJECT:

The aims of this feasibility project are as follows:

RESEARCH METHODOLOGY, ACTION PLAN & TIMING:

We have obtained data from the internet. We have also discussed with
tunnel experts, who are already working on this project, they provide us
complete guideline. However, we developed a questionnaire to collect
data from customers and as well as tunnel farmers.

Products:

Melons
Tomato
Pepper
Cucumber
Bitter Gourds
Squashes
Eggplant
Water melon
Brinjal
Note: our product line will be changed according market conditions.

Prices:

The prices of vegetables in normal season are around one-third of the

prices of vegetables grown in off-seasons. But most of the time it depends
upon market.

Production areas:

Our business plan is proposed to start its production at two sites. Both the
sites located in Yazman. One site is located in Chak No. 50/DB and the
second one is located in Chak No. 103/DB. After three years of
implementation we will further expand our business and we will start

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production at two new sites. One will be near Ahmed Pur East and the
other will be in Khan Pur.

MARKET RESEARCH CHECKLIST:

Market size:

Generally there are two types of market one is local and second is foreign.
In our business plan our market is local because vegetables are
perishable in nature and difficult to export.

Market structure:

Market structure of the market is different from each other. Basically we

are living in a developing country and the mostly foreign markets are
developed countries.

Market trends:

The demand of vegetables is increasing due to increase in population and

increase in the prices of chicken, mutton, beef and other food items.

Market potential:

Vegetables are the necessities therefore everybody uses them. In our

country mostly population falls in low and middle income group so there is
a high potential of tunnel farming in the market.

Marketing Strategy:

Our objective is to produce off-season vegetables for the local market.

Extensive marketing is not required for tunnel farming due to the nature of
our project. We will just do direct marketing.

COMPETITOR RESEARCH:

Off season vegetable growers:

At present, the tunnel technology is being used at the following

places/farms.

Mian Shadi Agri Farm, Mamonkangan, district Faisalabad

Haji Sons, Chiniot, Jhang

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 Ayub Agricultural Research Center, Faisalabad

Main Islam arian Agriculture farm, Lodrahan

Drashak Agriculture farm, Jalal Pur Road Lodrahan.

National Agriculture Research Center (NARC) Chak Shahzad,

Islamabad. Mardan

Sindhu Farm, Kamalia, district T.T Singh

Sitara Farm, at Sitara Chemicals, Shah Kot, district Faisalabad

Competitor prices:

Prices are depends upon the market condition, market size and supply of
products.

Competitor products:

The main products of our competitors are:

Melons

Tomato

Pepper

Cucumber

Bitter Gourds

Squashes

Eggplant

Water melon

Brinjal

Note: The product mix changed from season to season or year to year.

EXTERNAL FACTOR RESEARCH (PESTEL):

Government factors:

Government affects positively to the tunnel farming, no legal requirements

required for tunnel farming. However, government provides some special
subsidies on the items which are used in tunnel farming.

7 The Islamian Business Executives

Economic factors:

Our business plan will be totally based on equity contributed by all the
promoters, so there is no major economic factor that can affect our
business plan. However, inflation and risk may be involved.

Demographic factors:

Our business plan is based on agriculture and the land of our region is
suitable for tunnel farming. Moreover, the land of Punjab and Sindh is
suitable for this business due to its fertility our business plan is also
affected by the demographic factor as the population is increasing so the
demand for the agri product is increasing which is a positive indicator for
our business plan.

PERSONAL SKILLS ASSESSMENT:

Conceptual skills

Knowledge skills

Technical skills

Communication skills

Behavioral skills

Agriculture experience

Training needs analysis:

Two types of skills required

1. Training in start of analysis and planning:

There is no need is of special training because normally our business

plan is agriculture based and the same the skills of employees will be
helpful.

2. On the job training:

Technical skills and behavioral skills.

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GAP ANALYSIS:

List of skills:

We have good skills of

Finance

Marketing

HRM

Agricultural

List your experience:

Basically we are with agriculture background so thats why we have five

years experience of agriculture and this experience will be very helpful in
our business plan.

What skills are required for the planned business?

Agriculture skills

Tunnel Farming skills

Technical skills

Marketing.

Finance

Communication skills

Behavioral skill

Where are the gaps?

Following are the gaps:

Lack of tunnel skill

Lack of equipment that are used for production in summer season

No availability of good quality plastic cover that can be used for

more than one season.

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How do we bridge them?

We can hire experts that have tunnel skills

Import equipments and good quality plastic cover but the cost will be high.

Bibliography:

http://www.nation.com.pk/pakistan-news-newspaper-daily-english-
online/Regional/Islamabad/10-Feb-2009/Tunnel-farming-can-boost-
farmers-income [Online]. - Febraury 10, 2009.

http://www.scribd.com/doc/22398932/Feasibility-Report-of-Tunnel-
Farming-in-Pakistan [Online]. - 2007.

http://www.smeda.org/info.php?id=55 [Online]. - October 2007.

www.thenews.com.pk [Online]. - October 19, 2007.

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