BUSINESS NAME: BEE BUZZ

Type of Organization: Partnership

Licenses and Permits

* No special permits or licenses are required to operate or sell products in local area.

VISION:

To have flawless

• Incoming inspection

• In process inspection

• Predispatch inspection

MISSION
To manage the farm as an efficient and profitable
Beekeeping business, maintain assets in good working condition, reduce
debt and build equity.

LONG TERMS GOALS

GOAL STRATEGY TACTICS TIME

Pay off debt Maintain payment Priority on high cash 6 Years
schedule flow

SHORT TERM GOALS:-

GOAL STRATEGY TACTICS TIME

Diversify pollen Learn about pollen Seminar/books 3 years
production
wax craft Make candles & bar - 2 years
comb honey Build boxes 2 years
BEEKEEPING:

Beekeeping is the art of caring for, management, nursing and manipulating colonies of
honeybees (Apis sp.) so that they will collect and store a quantity of honey above their own
instant and/or present requirements

HONEY BEES:

Honey bees are the most significant group of insects under Apidae family in the field of applied
Entomology. Rendering enormous dedication for the production of fruits, seeds, crops,
vegetables and fibers in addition to honey and many other by products.

OBJECTIVES OF BEE KEEPING :

• Production of honey throughout the country. • Increase the production of crops, fruits, seeds
and vegetables by honey bee pollination. • Increase the nutrition value of human food. • Develop
bee-products by way of beekeeping. • Develop plant environment through plantation for keeping
bees. • Employment generation.

SPECIALITY :

1.No specific land is required.

2. No monetary value for required raw materials.

3. Minimum investment in comparison to output and/or other activities.

4. Applicable profession for everybody

 5. Good venture for part time and/or full time activities.

6. Potentiality is almost everywhere in the country.

7. By-products are not less valuable and important than the main products- honey as we
know.

8. Important role for the enhanced production seeds, crops, fruits, vegetable and fibres.

9. Creation of employment opportunities.

10. Increase the Agro based cottage industry.

Advantages of beekeeping as an income generation activity:

•Bee keeping requires less time, money and infrastructure investments

•Honey and beeswax can be produced from an area of little agricultural value

•The Honey bee does not compete for resources with any other agricultural enterprise.

•Beekeeping has positive ecological consequences. Bees play an important role in the
pollination of many flowering plants, thus increasing the yield of certain crops such as
sunflower and various fruits.

•Honey is a delicious and highly nutritious food. By the traditional method of honey hunting
many wild colonies of bees are destroyed. This can be prevented by raising bees in boxes and
producing honey at home.

•Beekeeping can be initiated by individuals or groups

•The market potential for honey and wax is high

PRODUCTION PLAN :
Production Strategy
* To maintain 200 hive level in full production

Production Facilities
* Currently have equipment and facilities to operate and maintain 500 hives
including extracting, storing and packing honey.
* Facility easily upgraded to better control climate for overwintering colonies

BEE KEEPING EQUIPMENTS

The best bet is to start getting different suppliers and comparing prices. Though in the first
year, an extractor won't be needed, because our harvest will likely be small. We probably
want cut comb honey instead of extracted honey for that first year.

A Smoker

Getting a smoker depends on the type of hive we will use, as a smoker helps in calming the
bees when we do your inspection. The best of these comes in copper, so it lasts for a long
time.

Protective Suit

When keeping bees we need a protective gear, and don't want to skimp here. just some
net won't work. We need something that wont com loose and let a bee get caught inside.

We do not need land or wide open spaces to keep bees successfully, and profitably. Hives can be kept in
a small garden or on the roof of a townhouse, even on a balcony or in a tiny back yard.
Bees must be kept in areas rich in nectar-producing plants, like clover and other meadow flowers. The
best place is close to where oilseed rape is grown. This is a particular favourite of bees who will travel up
to four miles to collect the nectar.
Beekeeping
Successful beekeeping means knowing and understanding our bees, what they need, and what
intervention they will, and will not, tolerate from us. Keeping bees is much like any other kind of animal
husbandry, demanding regular care, maintenance, time, skill and knowledge gained from experience.
The one essential difference is that bees are wild creatures, not domesticated animals. Bees work for
man, even with man, but they do not need humans and will remain in the hive only while it suits them.
The Hive
The most common model is the Langstroth hive, named after its inventor. The most important feature is
the brood chamber, being a wooden box filled with frames of wax foundation arranged vertically with the
familiar honeycomb pattern. This is the nursery where the queen lays her eggs and where the colony
stores its food.
Once the chamber is filled, further chambers with 'supers' are added where the surplus food and honey
is stored. Between the brood chamber and supers, a queen excluder is added, allowing workers bees
to pass through, but not the queen with her trail of eggs and larvae to contaminate the honey.

MANUFACTURING PROCESS
As explained earlier, Bee-keeping activity should ideally located where there are minimum
movements of human-beings with very little noise. Forest area is, therefore, suited with many
flowering plants naturally grown. Movable wooden frames with boxes are placed at such
locations and these boxes are spread with honey spice to attract more and more honey-bees.
These bees leave fresh honey sucked from flowers in the cells of honey-comb provided in the
boxes to eat bee feed. When these cells are full of honey, they are hermetically sealed by
capping with wax and then honey is extracted from these cells. Freshly extracted honey is
warm and easy to bottle. It is essential to undertake proper training of extraction and
bottling.

CAPITAL INPUTS
Land and Building
Land has to be in the secluded and area. A plot of around 300-500 sq.mtrs. is
sufficient.

Machinery
This is not a manufacturing activity as such and no machines are required. There is nothing
like production capacity as well. Small wooden frames with boxes are needed. Their sizes are
also standardized. Around 25 such sets would cost Rs. 42500/-. Honey extractors would cost
Rs. 1700/- each with filtration facilities. Two such extractors would mean investment of Rs.
3400/. Thus, total investment for support facilities would be Rs. 4,96480.

Utilities
There is no need to have industrial connection for power and even domestic supply is
sufficient. In case of non-availability of power connection (due to peculiar location), the
operations can be carried out during day-time.

Raw Material
There are no raw materials as such. Honey feed of about Rs. 60,000 approx will be required
every year for 30 boxes.

MANPOWER REQUIREMENT:-

PARTICULARS QUANTITY COST

SKILLED
WORKERS
HELPERS

MARKETING PLAN:
Market Potential and Demand Dynamics
Honey is a major consumable in the international market both as a food item as well as in
industries such as Pharmaceuticals, Cosmetics and Confectionary. The demand is
especially high for refined, high quality honey free from pesticides, insecticides and other
agro-chemicals.
China is the world leading producer as well as exporter of honey. Annual production in
China is estimated to be around 300,000 tones out of which nearly 50% is exported across
the world. In comparison, production in India is less than a quarter to that in China and so is
its share in exports market.
India produces around 70,000 tones of honey annually out of which 25,000-27,000 tones is
exported to more than 42 countries. Honey exports are estimated around USD 2.4 mn in
2005-06. United States, EU and Middle East are key exports destination for Indian honey.
Presently there are more than one million bee colonies in India but considering the market
demand, the Country has the potential for more than 120 mn bee colonies. This would
result in the production of around 1.2 mn tones of honey and 15,000 tones of beeswax.
Further it can provide employment to over 6 mn rural and tribal families.
In the domestic market very little amount of honey is use for personal consumption, while
majority is utilized by the pharmaceutical and confectionary industry. With changing lifestyle
and increasing health consciousness, honey is been increasing consumed as health food.
This is likely to drive the domestic demand in future.
Market Break-up of Honey Market

In the domestic market very little amount of honey is use for personal consumption, while
majority is utilized by the pharmaceutical and confectionary industry. With changing lifestyle
and increasing health consciousness, honey is been increasing consumed as health food.
This is likely to drive the domestic demand in future.
Why JHARKHAND?
The agriculture in Jharkhand is mainly for subsistence, basically rain-fed and the farmers follow
a rice-based cropping system. The State has inherent advantage to support a prospering apiculture
industry. With 31% area under the forest, the State forms an ideal rearing and breeding ground for the
honey bees.

Jharkhand is among the leading honey producer in India. Presently most of the honey produced in the
State is forest or wild honey but with proper assistance Apiary honey production could also be
increased.
A large part of State tribal population is engaged in the collection of wild honey using
unscientific and primitive methods. In Jharkhand trees in agroecosystem are particularly
valued as hosrt to insects.With training and assistance, advanced collection methods
could be taught to these which would ensure efficient supply of the raw honey to the
processing plant in a cost effective manner. Jharkhand has ample availability of economic
manpower to support the apiary industry which is a labour intensive sector.
Further, as export market would be the key target. The strategic central location of the
State and its proximity with major ports and key commercial centers in the Country would
help in efficient logistic function for transportation and distribution within and outside the
Country.

Location Analysis
ADVANTAGES TO FARMERS

• Enhanced economic returns

• Continuous income due to diversification of activities

Proposed Capacity
The proposed annual capacity of the plant is 500 MT.
Proposed Investment
USD 4.4 million or 2 crores INR
Returns
The Internal Rate of Return is estimated around 12-15%.
Coordinating Agency
JHARKHAND Minor forest Products Corporation

The key target Market would be:

• Ayurvedic Industry
• Food processing Industry
• Exports
• Domestic Retail Market

Marketing Strategy ’
• To expand product lines and advertise and promote these to build new
markets.
• To expand amount of honey sold at farm gate.
• To add value to products.
• To work with retail outlets to promote product and build customer loyalty
for our products.

The Market
The beekeeping industry is essential to the environment for pollination services
and for the pure natural hive products - honey, pollen, etc. Beekeepers are
independent and individualistic. Most beekeepers come to the industry to enjoy
the satisfying and interesting work with bees.
Honey and bee products have experienced low prices over the past few years.
There is very little generic marketing of honey and little coordinated consumer
education. There is also no quota or restriction on production.
Although most beekeepers focus on honey, some have expanded into alternate
products and into value-added and specially packaged honey products. Other
hive products (pollen, comb honey) are gaining customer recognition.
Current outlets (farm gate and contracted retail shelf space) can handle all the
honey we can produce.

Products ,
• Honey: liquid, comb
• Alternate products: pollen,
• Value added products: wax, packaging

MARKET POTENTIAL
Honey has substantial medicinal properties and is used in India since long. Procurement of
natural or pure honey is becoming difficult due to urbanisation and de-forestation.
Simultaneously, its demand is steadily increasing as Ayurvedic medicines are becoming more
and more popular. To facilitate rearing of honey bees to obtain natural honey, many
government agencies are providing assistance/incentives.

MARKET TRENDS
1. Per capita honey use is static.
2. Demand for pollination services are increasing.

MARKET OPPORTUNITIES
There are no other large honey producers in the immediate trading area to
compete for BEE BUZZ..

PRODUCT

Applications
Three species of honey bees exist in India viz. Apis Dorsta, Apis Flora and Apis Indica. These
species are reared for honey-combs. Pure or natural honey is extracted from bees. This honey
is in great demand round the year especially for Ayurvedic medicinal purposes. Many health
conscious people consume it regularly. It is also used in making certain health food
preparations.
Quality Standards
Quality standard specified by the BIS for honey is 4941:1968

UNIQUE SELLING PROPOSITION :

HIGH QUALITY HONEY WITH ITS SPECIFIC AROMA AND FLAVOUR BY UTILISING
SPECIAL MIX OF ENVIRONMENTAL FACTORS ,NATURAL NECTAR ,POLLEN AND
HONEY DEW.

Designing 4 marketing P’s:

Product :-

➢ Honey

Price :-

➢ Cost pricing strategy

➢ Current profit maximization
➢ Current Revenue maximization
➢ Quality leadership
➢ Partial cost recovery
➢ Penetration policy

Place :-

➢ Palamu
➢ Hazaribagh

Promotion :-

➢ Public relations
➢ Direct mail
➢ Advertisement
➢ Internet promotion
➢ Telemarketing

Future core competencies :-

• Variety of flavoured honey

• Strategies like telemarketing,internet marketing,direct mail.

Scenario analysis :-
In 2001, honey production was identified as a sector where low-income beekeepers across a
wide geographic area could participate and realize an important source of family revenue while
working in harmony with the natural resource base.
Design of the honey sector development component followed the project’s 5-point strategy to
enterprise competitiveness and profitability. Key elements included:
(1) Market Demand and Analysis;
(2) SME Development and Expansion;
(3) Links to Financial Services;
(4) Skill Development and Information Dissemination;
(5) Association Development.
(The key issue of low productivity of hives was due to the fact that most beekeepers did not
have access to essential hive management information and used outdated technologies and
treatment methods. Marketing knowledge and skills were practically non-existent

2) Mistrust between beekeepers, middlemen, and the domestic retail market was an additional
challenge facing the sector
.3)Furthermore, there was no unifying body through which to provide essential
technical and marketing services to the thousands of small beekeepers spread throughout the
countryside.
It was clear that a sustained program of direct technical assistance in bee hive management
and marketing would be required in order for the honey sector to grow.

SUCCESS STORY:-

Top of Form
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Enterprise / Cover Stories MAGAZINE | OCT 17, 2009

Hived Off: Shahzada S Kapoor (left) with brother Raja at their bee farm.

The Beekeepers
SUDIPTO DEY

Doraha
• JS Kapoor: Chairman, Kashmir Apiaries Group
• Area of operation: Honey farming and snacks
• Group Revenues: Rs 210 crore
***

S hahzada Singh Kapoor,38, has had to reprint his business card twice in the last 12 months. Not
because he ran short, but because it needed edits. A year back, his
card said Kashmir Apiaries Group had a presence in 35 countries.
Today, that’s gone up to 45 countries. The Rs 210 crore company, It started off with Rs
based in Doraha, 25 km from Ludhiana, is India’s largest honey 10,000. Three
exporter decades on, the
Kapoors have made
. It is also the fifth largest processor of honey in the world. Kashmir Apiaries a
That is a huge leap for a company with humble beginnings. Rs 210 crore group
Shahzada’s father Jagjit Singh started the business in 1978 with just just by selling honey.
Rs 10,000. He bought 50 bee hives with the money. A trained bee-
keeper, Jagjit Singh collected 50 kg of honey from the hives. But he
had a hard time finding buyers.
The business took off in the early 1980s when he started supplying Khadi Gram Udyog, a
government-supported cooperative. Gradually he became its largest supplier. Throughout the 1980s,
he travelled across Punjab, Himachal and Uttar Pradesh convincing farmers to take up beekeeping.
He sold them the hives and bought the honey. By 1990, he had 15 employees and turnover stood at
Rs 50 lakh, riding solely on domestic demand.
However, supply was fast outstripping demand and many beekeepers were disillusioned with the
diminishing returns. This prompted Kashmir Apiaries to look for foreign markets. The first export
consignment was sent to the US in 1998—a shipment of 100 tonnes of honey, then worth around Rs
70 lakh in the international market. The rest, as they say, is history.
Over the last decade, the company has grown steadily, riding largely on exports. “We must have
visited over 200 trade shows in the last 10 years,” says Shahzada, who has just returned from a
seven-day trip to France and Germany. The results are there for all to see—last fiscal, the group
exported over 90% of the 20,000 tonnes of honey it processed. Total exports are estimated to be
worth Rs 150 crore. Domestic honey sales and the group’s fledgling snack business account for
another Rs 60 crore in revenues.
Kashmir Apiaries has over 1,100 employees today, and sells honey under four different brands. It
also has around 140 private labels. These adorn the shelves of several global supermarket chains,
including Metro, Norma, Tesco and Carrefour. Key domestic buyers include retailers Reliance Fresh,
Easyday, More, Spencer’s and Cafe Coffee Day, as well as the Dabur Group.
Going forward, the Kapoors plan to make the group a professional entity. A new management
structure with professional CEOs heading strategic business units is under consideration. “The family
is ready to step back and let professionals run day-to-day operations,” says Shahzada. There’s a
clear goal. “We want to be the No. 1 honey processor in the world in the next 2-3 years,” says Jagjit
Singh.