www.8am.in - How-to-do-farming-of-sandalwood,-mango-or-teak,-teakwood-in-India,-Bangalore,-and-Karnataka

How to grow organic Indian Sandalwood

1) Is It legal to grow/sell Sandalwood? Does GovtOf India permit this?

Sandalwood trees were the property of the government for years, but now the rule has
changed. As per the Section 108 of the Karnataka Forest (Amendment) Act 2001,
sandalwood tree grown in a specific land is the property of the owner of the land. Hence,
anybody can grow sandalwood without any apprehensions.The government is also giving
subsidy to grow sandalwood through State Medicinal Plants Authority and Horticulture
Department.
Kindly check the proofs provided below:
The Karnataka Forest Amendment Act of 2001- Sandalwood
http://www.ndtv.com/video/player/news/sandal-the-lost-treasure-of-india/32497
http://www.business-standard.com/india/news/corporate-sector-enters-sandalwood-
plantation/431370/
http://www.hindu.com/2008/08/08/stories/2008080856441100.htm
http://www.thehindu.com/todays-paper/tp-national/tp-
andhrapradesh/article2028212.ece
http://www.asiantribune.com/news/2010/05/24/sunday-celebrity-sandalwood-scientist-
anantha-padmanabhan-works-royal-tree-restorati
We grow sandalwood on 1000 acres in and around Hyderabad Visit www.8am.in or call
9000086464.

2) Can Sandalwood cultivation really fetch crores of rupees?
Yes it can. Kindly find the following increase in price since 1990 till 2010. The prices
mentioned below at per metric ton (mt). As per our project analysis we would be able to fetch
upto 8 (mt) from each acre of cultivation
1) Indian Sandalwood has huge demand worldwide and the supply is currently way under the
demand.
2) 100 gms of branch wood (sandalwood) costs Rs 900 (source : Mysore sandal soap,
Karnataka)
3) 5 ml of sandalwood oil costs Rs 1350 (source : Mysore sandal soap, Karnataka)
9000086464.

3) Is it possible to harvest Sandalwood in 15 years as we heard it takes around 35 - 40
years?
So far we have only heard and known Sandalwood which was naturally grown in the forest
atmosphere. Sandalwood is a semi parasite crop and depends on host plants for most of its
nutrients, this is not readily available in the forest and therefore the growth takes time.
Adding to this is the Govt policy which restricts living trees being cut down in Forests. Only
dead Sandalwood trees in forests can be taken for production.
However, the scenario in organized cultivation is different. Host plants, water and fertilizer
management are properly done to ease Sandalwood’s growth thus achieving optimum output
within 15 years.

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4) There were other similar projects in the market involving Teak-wood which failed,
how is yours different?

Not really. Teak-wood is considered the king among Timber which is used in every Indian
household and as a tree it has never failed. The people and their greed had caused an alarming
situation for Teak-wood plantation. We need to understand that there is a huge difference
between an agro based farming and just planting few trees in a small real-estate plot which is
meant for future occupation . The real-estate-giants who started this disaster had little or nil
knowledge in teak cultivation. The only intention we sensed was money minting. The major
aim was to promote real estates and land sales by showing an added advantage of income
from teak-wood. For them cultivation/plantation was just an added benefit to attract the
customer. The real-estate owners benefited from the land sales and never gave any
professional care for the crops.
We have come across other customers who have paid some X amount for a tree to companies
without knowing as to where the plantation is being done, who does the plantation and what
is the security being given for the invested amounts. When customers fund
individual/companies whose real intention/income source is not from agriculture/plantation
then the results are fatal . However, for the error made by humans the tree gets blamed. This
scenarios has caused such an adverse effect and mind-block for individuals today that teak-
plantation (in fact any plantation) has become a talk of the town as being an unfruitful
investment.
The reality is different. If Teak-wood is being used in every household and we pay good
amounts to buy them then someone-somewhere is doing a good plantation.
An investment involves your money being entrusted into someone else’s hand for which you
expect some returns and it always involves risk and we are no exception. However what one
needs to analyze is the amount of risk involved compared to the reward compensated for the
risk taken.
In general everyone only concentrates on the outcome projected for an investment. The most
important point/s which people tend to forget while investing are:
1) Where is your money being invested? Does that source has the capacity to achieve profits
as projected?
2) Does the instrument/person/company, who do the project, have the capacity & expertise to
generate income from your investments?
3) What is the security being provided for your investments and is it justified?
4) What, where and when is the benefit for the person who handles your investment?
5) Does the investment plan provide a profitable & anytime exit plan for you?
We at SiriAgri Group have an answer for the above questions :

1) We are investing your money to cultivate Indian Sandalwood which is the top sold in its
kind world over and its capacity to generate in crores is beyond doubt.Consider checking the
next question (Q.no 3)for details.
2) SiriAgri Group is a 100% agro based company and the team involved consists of scientists,
biologists, horticulturists and farmers. Our passion and area of expertise is Sandalwood
farming and we are working towards its restoration.Our Chief Executive Scientist(CES)Dr.H
S AnanthaPadmanabha has done successful plantation in many counties one being Australia
wherein TFS (Tropical Forestry Services of Australia) has grown Indian Sandalwood on
more than 35,000 acres of land involving thousands of customers. If anyone in this world can
cultivate Sandalwood we challenge that we would stand the top amongst them.
3) (a) Land is the only immovable instrument involved in farming. All other assets like,
saplings, bore-wells, drip, security walls, sump, guesthouse including, the time, effort &
expertise of the team is invested on this unmovable asset and this instrument called land is
being registered in the name of the investors.

(b)We are offering the land with all amenities and the expertise of our team at the base price
which we guarantee that an individual cannot find anywhere else. Owning an individual piece
of land today is the dream of many however the price offered in the market is way above the
reach of a common man. Providers offer one SqYd at some XXX amount and add 100-500
rupees per SqYd in the name of development charges. Some even go in the name of offering
one acre of land at a said price and only give 4000 SqYds deducting 840 SqYd (one acre of
land = 4840 SqYs)in the name of development charges, wastage charges for roads/amenities
etc.
We are charging a straightforward cost which is applicable to do this farming at the actual
cost incurred to do Sandalwood Farming with State of the class technology, expertise and
without compromising on cost or Quality. As a company we will be selling this property
between a price range spreading between Rs 116 till Rs 285 per SqYd based on our “STEU-
UP” pricing module and we guarantee that even at our final price (Rs 285 per SqYd ) this
purchase is a very fair deal.
Your core investment has the full value if liquidated (sold back) at any given time. This
single factor reduces the risk and maximizes the investment security.
4) This is a very important point to be carefully examined before investing into any
Investment source. An individual/company can never get you profits for your investment
unless they themselves are properly benefited. This applies even at ones workplace.
WHAT :SiriAgri Group gets reasonably benefited for the efforts which the company & its
team put in. We get rewarded 100% of the benefits for the first four years thereafter we have
a 50% share from the profits till the end of the project.
WHERE : We get the profits from the short term crops like raggi, watermelon, vegetables etc.
From the fifth year we get benefited from the mango yields till the end of the project. Tenth
year we get a bonus in the form of the profits from Teak wood and at the end of the project
we get a huge share from the Sandalwood harvest.
WHEN : We get this profits right from the beginning of the project till its end and only when
we do our work.
5) Absolutely, since the investment is done on the base price required to do farming the
investor has every option to exit anytime, with a benefit of course, SiriAgri Group adopts the
step-up pricing module which starts from Rs 116 per SqYd and increases it to Rs 125, Rs
150, Rs 165, Rs 185, Rs 210, Rs 235 and finally to Rs 285. The increment of pricing purely
depends and is proportionate to the development completed in the farm. This helps and
investor to gain initial benefits based on the Risk vs Reward ratio calculation.

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5) What is the plan/proposal of SiriAgri Group?
SiriAgri Group is an 100% Agro based company and consists a team of Scientists, Biologists
, horticulturists and farmers with 40 + years of experience in Sandalwood cell biology. We
intend to do collective farming of Indian Sandalwood (Santalum album)in huge volumes.
Agriculture is our teams passion and Sandalwood is our area of expertise.

When farming is done in an collective manner and in huge volumes the cost incurred to
involve latest technology, equipments and expertise comes down.This is what Australia has
been doing and is now supplying Indian Sandalwood to India.

Australia is doing farming of Indian Sandalwood involving Indian Scientists ( Dr.H S
AnanthaPadmanabha& Team) and selling it back to India which is a very alarming scenario.

India has the best suitable environment to grow Indian Sandalwood. Until now we were
hand-bound as Indian law did not allow individuals to grow Sandalwood however with the
amendment of this law we as a company intend to do Sandalwood farming. Dr.H S
AnanthaPadmanabha the same scientist who has successfully done this plantation in many
countries including Australia and in over 35,000 acres of land is now the Chief Executive
Scientist (CES) of SiriAgriGroup.As a company SiriAgri Group can independently do
Sandalwood farming however only upto an limited extent. As mentioned earlier, to bring
down the cost and to do an optimum utilization of this rich resource found within India we as
a company have to do it in large volumes and the best way to do this is by involving
individuals as a team and increasing the area of cultivation.

It takes time, money and expertise to do Sandalwood farming. We intend to contribute time
& expertise and invite individuals who have the passion for farming to invest as per their
financial capacity. The rich yield from Sandalwood to be shared on 50:50 ratio thus justifying
both the investors & the experts.

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6) What are the risks involved in Sandalwood plantation and how does SiriAgri Group
take care of these risks?
This is a very important Question we request investors to read it thoroughly

Climate:

K Muralidhar Reddy (Acharya) Designation with SiriAgri Group: Executive Environmental
Scientist who is a Master of Science (environmental science & engineering) from University
of Maryland College Park, MD,USA handles the needs of environmental changes and its
effects in our projects.
a) Andhara Pradesh, specially Hyderabad and surroundings are known to experience
moderate climate. Sandalwood Farming survival need of climate varies between 5 degree
Celsius to 50 degree Celsius.
b) The current project involves plantation of 1,12,500 trees which naturally decreases the
environmental temperature upto 9 degree Celsius compared to the natural temperature thus
ensuring that even in peak summer the temperature in the farms never exceed 40 degree
Celsius.
c) The selected project area and its surroundings has never experienced extreme wind or
cyclones however as a contingency planning the initial saplings are planted with the support
of 6 ft rods/bamboo sticks to avoid getting uprooted.
Diseases:
SiriAgri Group stands incomparable from the other on this very important risk factor. There
are about 150 diseases/insects effecting Sandalwood saplings (If you want a complete
description of the diseases and their cure click here ) however 99% of them are eradicated in
the one year’s duration in the nursery specially maintained for our group. Post one year of
nursery maintenance saplings are handpicked for farm cultivation. During the growth tenure
one has to take special care of insects like defoliators, sapsuckers, stem borers and termites.
The role of sap sucking pests belonging to the family Coccidae is very deleterious to the
normal health, growth and reproduction of sandalwood plants specially as this are invisible to
human naked eye and cannot be identified easily.

Our expertise team is specially trained to handle this occurrence by regular monitoring of the
crop and its health.
Water availability/ drought :
Mr S V L Prasad who is currently working as Manager Horticulture of the Taj West End (Taj
Group Hotels) Bangalore handles the horticulture department of SiriAgri Group.
a) Sandalwood trees consume minimal water for its growth when compared to its
counterparts. The trees need watering only 5 months in a year and at the intervals of 14 days
each.
b) The current project has water availability from 9 ft onwards. Bore-wells dug in the farm
are done after a firm geological survey and are dug almost 10 times more than the current
water availability.
c) As a contingency planning ground water recharging module is implemented wherein water
beds are prepared within the entire farm by digging wells upto 30 feet and filling them with
layers of rocks and sand beds.
d) As the last resort, in case of failure of all the above planning, water can be availed on
subsidy from the Government canal which runs within our project.

Soil fertility :
a) The land selected for plantation go through proper soil test for their PH value. The current
project at Aleru has been selected post these tests. Even in scenarios where the ph value
reduces interim , our scientists have identified artificial means of substituting it.
b) The initial test have proved Aleru and surroundings to be very fertile for Sandalwood
cultivation specially (santalum album)
c) The surrounding have living sandalwood trees aged 4-6 years in the surroundings proving
its capability to cultivate Sandalwood.

Mortality/Failure % :
SiriAgri Group considers this factor as the most important factor in which the company
expertises. Mortality/Failure % is very common in an unorganized farming done by
freelancers, individual farmers, non agro based farmers like commercial real-estate ventures
etc who fall prey to this loss. This is a long term project and people try to cut the cost at the
initial levels. I.E purchasing sapling at the least cost possible without knowing the crop
genetics , not concentrating on soil fertility or pre-planning for soil erosion, not spending on
water harvesting or contingency planning, compromising on security parameters,
compromising on the cost to take expert assistance etc
Let us give you an example of what we are trying to say : let's say you have been assigned a
project in hand and as per your analysis your target profit from that project is Rs 1000 and the
cost to do the project is Rs 100. When you know the outcome ratio is huge when compared to
the cost then it doesn’t make sense to compromise on the quality or cost which the project
needs to complete successfully and risk/reduce the output.

At SiriAgri Group we handle this factor professionally without compromising as we are 50%
share holders of the profit. The common mortality rate in our project is upto 18% which we
try to further bring down by following the below mentioned parameters :
a) SiriAgri Group has a independent seed orchard designed to improve the genetics of the
seed stock to produce trees of the highest quality. Superior trees are selected based on growth
characteristics and oil content. These are then control pollinated to produce seed for use in the
project.

b) The saplings from this seeds are then grown in nursery for a period of 12 months before
planting it into the cultivation area to further reduce the count of dead, week, infertile and
impotent trees.
c) Further, the hand pick saplings are planted in the cultivation area and back-up saplings are
still maintained on a 100 : 3 ratio to further replace dead trees by replanting until the fourth
year. Mr S V L Prasad who is a member of SiriAgri Group specializes in re-plantation of
trees.
d) Trees planted in the cultivation area are supported with rod/bamboo sticks till the 4 year to
help its roots gain ground support.
Labour :
With the growing economy the labour availability is shrinking day by day. With easier means
to earn more even farm labourers in villages are fast moving towards metros causing huge
shortage of availability in farming sector.
SiriAgri Group handles this sensitive issue with adopting an combination of technology &
ethical traditional means. Our projects adopts latest Hi-Tech equipments which reduces the
manual labour by 68%. All major farm activities starting from digging holes for plantation,
regular weeding of dry grass, watering the plants etc are managed by machinery reducing
labour dependency. Even the drip irrigation adopted by our company can self detect and pin
point any faults within it thus reducing supervision..
The rest of the requirement of human labour needed to do the farming is select from villages
following a stern recruitment process and the selected candidates are taken on permanent
payrolls of SiriAgri Group with all facilities like, PF, pension, bonus and a small share in the
profits.
Fire:
Fire normally happens in an unattended surroundings such as in wild forests. However,
SiriAgri Group has understood the damage capacity of such untoward incidents and has
planned well in advance.
a) The first contingency planning is done by constructing an boundary thus reducing the risk
of intentional planned fire outages done on purpose.
b) The entire farms are sealed with single point entry system into the cultivation area wherein
the staff/guest are frisked for security check.
c) The farms undergo regular process of weeding wild grass thus reducing the fast growth of
fire in case of one.
d) The drip system adopted by SiriAgri Group are equipped with heat sensors which
automatically start sprinkling at their top capacity when there is a sudden change in the
temperature. This acts like a fire extinguisher.
e) The entire farm is well planned with approach roads for a fire- brigade vehicle to reach any
point without hindrance.
f) The permanent staff stationed at the project are trained/equipped to handle minor fire
hazards.
Theft:
Sandalwood theft starts from the 6th year as the tree starts showing traces of oil content and
therefore we have made adequate precautions for the same. SiriAgri Group spends upto 36 %
of the entire project budget on security.
a) A very important point to be noted is the GO passed by Govt of India. As per the GO, the
individual/company possessing/farming Sandalwood trees is/are the absolute owners of the
same and can enjoy the outcome of Sandalwood without restrictions. Earlier smuggling/theft
prevailed as Sandalwood was considered as govt property and individuals possessing it were
under illegal possession.

b) 7ft walls for the entire farm with 2ft of Solar fencing form the 1st level of security making
it a single point entry and a secured gated farming module.
c) The entire inner layer within the boundary walls are once again sealed with a security
software which has been specially designed for SiriAgri Group ( Security software companies
name and details will not be disclosed for security reasons.)
(i) This software security walls are designed to alert any changes in the continuity of the
security chain I.E in case of any breakage at any point of the wall the security software senses
the breakage and alerts.
(ii) Sensing of human penetration by sensing heat.
d) 24x7 security personnel staff which would be increased as per requirement and the
growing age of the plant.
e) The security staff stationed at the project is shuffled every 11 months as to avoid any local
contact.
f) Full time dog squad management from the 7th year as a contingency planning.
i) Installation of vigilance cameras at key points with 24x7 recording facility.
j) All above mentioned security activities to be outsourced to different vendors for a
maximum period of 24 months without any scope of agreement renewals.
k) Inserting of RF Ids (Radio Frequency Ids ) in the stem of all Sandalwood trees at the age
of four which is invisible to naked eyes however can trace the transportation of logs in worst
to worst scenarios.
Loss of key role personnel:
SiriAgri Group's management team realizes that a long term project needs proper planning
this includes back-up planning for the key role personnel. Our projects are carefully planned
reducing the dependency on single individual/s by transferring knowledge to the next
generation. We have a team of 12 interns from various agricultural universities who are full
time employees of SiriAgri Group and have undergone complete training in handling the crop
module designed in case of any unforeseen events.
Competitor Risk:
a) Indian govt passing the GO for Indian citizens to cultivate/hold and enjoy Sandalwood has
already made experts in Australia to draw back from re-cultivation of Indian Sandalwood as
they realize the risk and competition with Indian counterparts growing Indian Sandalwood
within India.
b) Competition within India is very minimal due to various reasons like .
i) The average per capita operational size of land holding in India is 1.33 ha, which is far
below the world average of 3.7 ha per person. Further, land holdings have shown a marginal
decrease from the holding size of that of a decade ago (1.41 ha)
ii) Financial capabilities of Indian Farmers which is no hidden secret.
iii) Even if our real-estate giants realize the potential of Sandalwood and start selling their
plots with Sandalwood trees, their quality would be beyond the market acceptability and the
outcome can only be used for the carving industry which pays the least compared to the oil
content bearing trees.
iv) Small players and individual trying their hands would/might also face the same
consequences of ending up their yields for the carving industry due to poor crop management
, Security management, skills & expertise managements.
(v) Even if we get proper & healthy competitors Sandalwood Industry's current demand
needs about 80,000 hectares of cultivation each year to meet their current demands.
Demand and Supply :
With the GO being realized its very obvious for individuals to take up Sandalwood farming
and we at SiriAgri Group invite healthy competitors as we are strongly working towards the
restoration of Indian Sandalwood within India. Demand would never be effected as right on

date Sandalwood needs 80,000 hectares of cultivation to effect its current demand and this
demand is increasing at 18% per annum.
SiriAgri Group abandoning the project in midterm :
This is highly impossible as we do not get profits at the beginning by selling land/s however
get continuous and adequate profit right from the 3rd month of stating the project till the
project ends. As a company SiriAgri Group would continue doing Sandalwood Farming year
after year thus capturing the Sandalwood market from the fifteenth year and thereafter. As
income is shared on 50:50 ratio the company will continue to retain interest and monitor the
farming process in the best possible manner. The profit volume increases as the years pass
and therefore reduces the risk of abandoning the project in midterm.
Insolvency of SiriAgri Group:
a) SiriAgri Group is a well planned establishment with strong financial background. As a
company we have the financial capabilities of doing Independent farming without external
funding.
b) The project is planned to be self funded for all its maintenance costs as Sandalwood
farming needs host plants at various levels which manage continuous funding for
management.
c) The project design is so made that the funding for END to END farming is collected from
the investors right in the beginning to overcome any cash delinquencies from the investors.
d) Experts involvement and their compensation has been well planned so as to sustain their
continued interest in the project.
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7) How do you claim to provide maximum Security & Returns for my investments?
To confirm that we provide maximum security & returns for your investment we need to first
understand what is the real meaning of risk. Risk is the potential that a chosen action or
activity will/might lead to a loss and in our case the risk in discussion is your initial
investment.
Risk in our case can happen if the initial purchase price is not justifiable. If Sandalwood
cannot fetch in crores . If our team does not expertise in cultivating Sandalwood and If
SiriAgri Group abandons the projectin between.
The above factors have been carefully taken care of and a detailed explanation has been
answered above under Q.no : 2
Risk of Initial Investment : This risk prevails till the investment amount is not secured I.E if
you are investing @ Rs 165 per SqYd can liquidation value (that is if this property is
disposed) get you Rs 165 atleast. SiriAgri Group guaranties this factor by selling the project
at the base price and adopting the “STEP-UP” pricing module.
Risk when compared : Once you are confirmed that your property can fetch the invested
amount + atleast Rs 1 added ( I.e if you purchase it at Rs 165 per SqYd and it can fetch
atleast Rs 166 per SqYd) the risk with comparison starts. Like, what would it fetch if you had
invested it elsewhere. Sandalwood Farming returns ratio is 1:50. means, it has the capacity of
fetching Rs 50 for evey rupee invested and is way above any available market option.
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8 )What is “STEP-UP” pricing module and how does it helps customers?
A project needs investor’s funding right from the initial stage however different investors
need different security levels to help them understand and feel secured to invest in any
project.
(a) Few want to know as to how many people have invested and are ready to invest only after
many others invest.

(b) Few want the plantation to be completed and only post which they feel comfortable to
invest.
We as a company understand and accept the insecurity nature of the customers and customers
cannot be blamed as the past experiences have not been good in many cases. However, as a
company we need the initial investors to invest in order to answer these questions and to
reach the plantation stage.
On the other hand we have investors who can analyse the capacity of the team and the project
details at the initial stages and can start investing. STEP-UP pricing module helps an
organization in such situations. The pricing in such modules purely depends on the
development/s done in the project and the Risk vs Reward ratio.
For example our pricing spreads between Rs 116, to 125, 150, 165, 185, 210,235 and finally
to Rs 285 per SqYd. Anyone buying at any stage get the same final benefit of 4crs.
The difference in the initial investment pricing helps the customer decide as to which stage
they want to accept entering the project and properly compensates the initial risk takes as per
the Risk vs Reward ratio.
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9 )This is the first Sandalwood project for Siri Agro Group, how do we trust your
expertise?
This is not just the first Sandalwood cultivation for Siri Agro Group but is the first for one of
its kind for India. We suggest you to check on the points given below:
1) We have a great Team of Scientists and Biologists with 40 plus years of experience in
sandalwood cell biology who have mastered the technology of artificial raising of
sandalwood.
2) This is one of the first of its kind of cultivation being done in India however it’s not the
first for the scientists. Farming has been successfully done on 35,000 acres of land in other
countries.
3) You are welcome to check and do a cost analysis and verify the asking price. At Rs 165
PerSqYd we DO NOT profit with the sale of the land.
4) The land is registered in your name thus reducing the risk.
5) Though very difficult for us, we have offered you an installment facility for 40 months.
With this, You have more time to check our credibility.
Rest, let the time speak.
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10) If the results are guaranteed, then why don’t the farmers or the project owners do
the farming themselves?
As a company SiriAgri Group has already identified the huge potential in Sandalwood
cultivation and to make this even more successful and risk free we have pooled in the highest
talent & expertise. We have adopted the latest techniques which comes from years of
tailoring and is based on a tested and proven technology. The costs incurred in adopting this
technology & expertise can be used upto any extent of farming area. As per our experts’
analysis the cost of farming per acre gets even lesser with the increase in volume of farming.
As a company we can independently do its farming however only upto a limited extent. To
do an optimum utilization of this rich resource, to bring down the costs incurred and to
increase the volume of farming we involve individuals as a team and share the outcome.
Many individuals, especially the working class employees wish to get into farming. However,
lack of time and expertise keeps them away from doing so. Sensing this as a profitable
opportunity many sharp brains lure employees in the name of Mango/fruit bearing plantation,
green house planning, second home etc etc. Post involving in such unfruitful investment

option the investors form a negative prospective towards farming and add to the already
prevailing disaster to our agro industry.
As a company SiriAgri Group helps these individuals determine the actual costs incurred for
doing an successful farming and offers them an opportunity to join the organization's growing
potential of Sandalwood farming thus also helping this cash crop called "wooden gold" retain
its reputation before it gets tagged as in the case of Teak-wood. This combination of
individuals and the company results as a win-win situation for all, including the tree.
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11) How am I benefited, what’s in it for me?
You get the ownership of a decent property ( ¼ acre or multiples)at very nominal price.
You get 50 % share in one of the world’s richest cultivations without personally involving
yourself as everything is taken care by the project owners. You invest, sit back and share the
yields.
Mango plantation fetches upto 80 thousand PA per acre right from the 5th year up to 30
years.
10th year the teak wood fetches around 2.25 lakhs per acre.5th year the sandalwood crop
yields and fetches the expected fortune of about 4 crore. The company is in the process of
getting approved for “ carbon credits" which is a program run by the UNFCCC which
encourages individuals & groups who grow trees by awarding apprx $ 15 a year for each crop
grown (Starting from the8th year of the crop)
Access to guest house with family and friends.
Clearance from Govt of India has been availed thus no interpretation from the Government
for sandalwood sale.
The best part I liked is that the income under this project is TAX FREE as it comes under
“Green Money”.
If we keep the commercialism aside, you would be a proud contributor of 450 trees (per
acre) to the environment.
Post 15 years this investment is seen as a good plan for a farm house as the project will end
up with only mango groves (as teak and sandalwood will be sold ) leaving behind a lush
green farm land big enough for construction, with gated community, common guest house,
well laid roads connecting each acre of land giving independent access to the land owner/s
and the most important “the likeminded neighbors “as all the owners would have minimum of
¼ acre of land, which means “family privacy” and would be an ideal plan to get away from
the concrete jungle for a post retirement life
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12) How do you claim that we get it for free?
Let’s be clear. Nothing in this world is for free except the word “FREE” . Everyone has to
invest something or the other like time, expertise, efforts or money to achieve something. We
never had this question in our FAQ’s section however after speaking to one of our client and
looking at the right way he approached to actually get his property for " FREE " is when we
decided to upload this Q&A to help others utilize the same.
Here is an live example taken from one of our customers experience. Mr XYZ (name
changed) is a manager operations with one of the IT companies and had visited our project
with few of his colleagues in the month of November 2010. That was the initial period for our
project and we only had the project planning in place along with the barren land with wild
bushes. While all his colleagues and himself liked the projections very well and understood
the teams capacity, they still wanted to wait for the plantation to complete.

Mr XYZ reproached us many times during November and December and kept clarifying all
his doubts specially in regards to progress stages of project and the “STEP-UP” pricing
module. He finally offered to purchase one acre of land in installments however wanted a
discount on the interest part as according to him he would complete the payments by the end
of 2011. He also wanted to sell ¾ acre as and when the prices increased and we had no issues
with that. At that time the pricing was Rs 125 per SqYd costing an acre Rs 6,00,000 and with
installments it would bring it to Rs 7,00,000. Since we were getting the payments within one
year we gave Mr XYZ an discount of 60,000 on his interest part bringing the total payable
amount to 6,40,000 on condition that he would complete the installments by December 2011.
Mr XYZ made a down payment of Rs 1,00,000 in the month of January 2011 and started
paying his EMI of 20,000 pm from February. He kept inquiring about the developments of
the project ever now and then till date. We went on with the developments on the land and
post completing major developments increased the pricing as scheduled to Rs 150 per SqYd.
Based on the developments one of the colleagues of Mr XYZ who was also following us
decided to invest in our project and was given ¼ acre from Mrs XYZ’s 1 acre. The price
difference benefit of Rs 30,000 was added to Mr XYZ’s payments. Here our company had
the press release post which we conducted an get-together with all our existing customers
with their guests. Mr XYZ couldn’t make it to the occasion however his colleagues who are
also a great fan of ours had attended the meeting and expressed their desire to purchase.
As we had promised Mr XYZ to sell only his property to any referrals of his, we called him
up to confirm his friends desire to purchase however were surprised to hear what he said. Mr
XYZ had initially planned to sell his ¾ acre only when the price would increase to Rs 185
and thus get his ¼ acre absolutely free(by selling ¾ acre 3600 SqYds multiplied by Rs 185
=6,66,000 wherein he only had to pay Rs 4,50,000 to SiriAgri Group, thus benefiting
2,10,000 as the difference price and therefore getting his ¼ acre for free) . But now he had
changed his mind and wanted to sell only ¼ acre more and would only sell it when the price
came upto Rs 235 or above as secluded with our pricing module.Taken by surprise and out of
curiosity we asked him as to what he would have done in case his friends had decided not to
invested in our project even after the plantation. His answer was simple and clear.
As per him he already had the financials to purchase ¼ acre of land outright in January but
then wanted to wait till we completed developments as we projected however he also wanted
to take the advantage of the “STEP-UP” pricing module till then and would have no issues
even if the land was not sold as he would atleast have the land registered in his name or
already have the appreciated value by then if we went the way we promised and was happy
that this appreciation happened much earlier than that.
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13) What is carbon credits and how do we customers financially benefit from it?
As nations have progressed we have been emitting carbon, or gases which result in warming
of the globe. Some decades ago a debate started on how to reduce the emission of harmful
gases that contributes to the greenhouse effect that causes global warming. So, countries
came together and signed an agreement named the Kyoto Protocol . This is the largest
portfolio for any country signatory to the United Nations Framework of Climate Change
Convention (UNFCCC). The UN body certifies countries and companies that can trade in
carbon credits under the Kyoto Protocol.
The Kyoto Protocol has created a mechanism under which countries that have been emitting
more carbon and other gases (greenhouse gases include ozone, carbon dioxide, methane,
nitrous oxide and even water vapour) have voluntarily decided that they will bring down the
level of carbon they are emitting to the levels of early 1990s.

Developed countries, mostly European, had said that they will bring down the level in the
period from 2008 to 2012. In 2008, these developed countries have decided on different
norms to bring down the level of emission fixed for their companies and factories. India,
China and some other Asian countries have the advantage because they are developing
countries. Any company, factories or farm owner in India can get linked to United Nations
Framework Convention on Climate Change and know the 'standard' level of carbon emission
allowed for its outfit or activity. The extent to which I am emitting less carbon (as per
standard fixed by UNFCCC) I get credited in a developing country. This is called carbon
credit.
These credits are bought over by the companies of developed countries -- mostly Europeans.
SiriAgri Group has outsourced this opportunity acquisition to various brokerage companies
and the final benefit negotiations isongoing.
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16) I would like to, but I am worried about the Telangana issue?
We are not sure what it actually means by “Telangana issue” in fact we would like to know
how it affects agriculture or the land value. Would a customer/owner sell his land for a lesser
price then what he purchased for? Even if the partition happens, it’s not going to be like
Pakistan and India’s separation. We would still be Indian citizens having completes rights.
This might partially affect the commercial sites, super malls, i-plexes, or other business
establishments which depends on daily customers and are located within the city limits. This
might affect the real estate or the construction industry which took the prices sky high
accounting to the IT boom and now want a reason to pull back the prices due to poor sales..
This project is entirely different and does not really depend on land value. The agricultural
yield is the most important factor here. In fact, this has come as a blessing in disguise to us.
When we started the project somewhere 3 years back the same land was priced at around 2.3
to 2.5 lakhs (Without including clearance/leveling/pit filling etc) however we have managed
to acquire it at a much lesser price now as we acquired around 200 acres and this leads to a
benefit for the end user. Anyways, this is a long term investment and is in agriculture. Mother
Nature would bless exactly the same yield irrespective of it being in Telangana or Andhra (no
offence please) and the land appreciation will also not get
affected as it is already bought at the least price possible. Everything has its own good and
bad effects …its just the way you look at it.
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17) What is the cost of dry land in the same locality?
The dry land costs approximately 3.5 to 4 lakhs per Acre (including clearance/leveling/pit
filling etc)
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18) Then, why are we being charged 7.92 lakhs for an acre?
The project owners have taken the compete responsibility of the crop till the fourth year. The
initial stages of sandalwood cultivation is the most costly affair. Things like , farming
equipments , saplings, planting expenses, bore wells, overhead tanks, sprinklers, geo coding
technology, staff quarters, guest house, solar fencing, Roads for every acre of land,
maintenance cost for 4 years etc take away almost all of the initial investment. This, when
calculated, for the entire project, comes to the asking amount by the project owners.

Few of the major cost contributors for every acre are:

Land with clearance, pit filling, levelingetc 3,50,000

450 trees including transportation ( 395 each ) 1,77,750

Drip irrigation /sprinklers 54,000

Fencing 7 Ft (Cumulative for every ¼ acre) 60,000

TOTAL 6,41,750

Other expenditures add and total up to the asking price. The farmers grow minute crops (like
watermelon, jawar, ragietc ) till the 4th year for their survival as the main trees do not shade
the land. This income is not shared with the land owners however helps them lower the cost
prize as maintenance cost is managed out of this.
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19) Do we (customers) have to pay anything for the maintenance cost after the fourth
year ?
No, the initial stages of sandalwood cultivation is the most costly affair however after the
fourth year the trees grow big and needs less maintenance. Added, the mango trees start
yielding small incomes which takes care of the maintenance. Post maintenance expenses the
land owners can expect small profits "approximately " 20-30 thousand PA (per Acre). We
have classified the expenses to maintain clarity as the initial investment can only take care up
to the 4th year.
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20) Why do we (customers) have to bear the entire initial cost when the profit sharing is
on 50/50
basis?
The very intention of involving customers is for their money investment. The project owners
contribute their part of investment with their expertise in sandalwood farming. However, the
customers are not being left out as the land is being solely registered in their names with
appreciating value.
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21) Who is Dr. H S AnanthaPadmanabha ?and how is he associated with this project?
Dr.H S AnanthaPadmanabha, the forestry consultant, is an expert on sandalwood cell
biology, who mastered the technology of artificial raising of sandalwood. A scientist of 40
years experience in forestry in India, he had worked as a senior scientist at the Institute of
Wood Science and Technology in Bangalore (India) from 1964 to 1998 and was responsible
for guiding research projects on sandalwood and other forestry species including but not
limited to techniques of growing sandalwood and decease and pests affecting forestry tree
species.
Currently he is a Director of Karnataka Research Foundation and Advance Technology
Transfer, Bangalore, Consultant to Tropical Forestry Services Western Australia, consultant
to Forest Rewards, Western Australia, and had served as consultant to Department of
Conservation and Land Development (CALM) and Forest Product Commission (FPC)
Government of Western Australia from 1998 to 2002. He is honorary consultant to Karnataka
Soaps and Detergents Ltd, Bangalore, assisting and providing guidance to farmers, corporate
bodies and NGO’s in growing sandalwood in India.

He has co-authored books on sandalwood and have published over 150 publications in both
Indian and International journals. He was designated as chief Technical Advisor for
sandalwood projects with the World Bank FREE project (ICFRE) Government of India. He is
currently appointed as the chief technical scientist for this project . Many articles have been
written about him.
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22) Do you have any Insurance for this crop as it is a long term crop?
No insurance company in Andhra Pradesh insures a long term crop. In East & West Godavari
seasonal crops like paddy can be insured as the yield completes between 3 to 6 months and
the insurer continues to benefit on renewals. Sandalwood is a wild crop and the cultivation
duration is longer therefore we do not have any Insurance. However we have taken ample
care and did our risk analysis well to handle any unforeseen situation/s.
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23) I would like to see the site. Do you provide the transport facility to visit the site?
You are welcome to visit the site however we do not have transportation facility on company
cost. You would have to travel on your own convenience, or company cab is provided at a
cost of Rs 400 per head.
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24) Are there any discounts or price negotiations ?
The offer price is fixed and we do not have any scope for negotiations.
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25) When is the land registered in my name?
The registration/transfer is done on receipt of full payment or on the completion of all
installments.
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26) Can I get a copy of the Project Disclosure Document and the Memorandum of
Understanding (MoU)? ?
Yes you can. Kindly send an email to pdd@8am.in and an email will be auto-forwarded to
your email id.
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27) Can we have choice in selecting the land allocated to us?
An up to date copy of the layout and allocation would be available at the time of registration
and allocations are done on first come first serve basis (without any prior reservations) to
maintain a fair and transparent ownership.
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28) As owners, can we construct a farm house, on our own expense, in our allotted piece
of land?
No, though customers being the owners it cannot be allowed for any construction in the
“cultivation area”. However, if interested, separate area has been arranged at nominal cost.
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29) I come from farming background, can I implement/handle/add/modify any changes
to my piece of land or the crop?

Ideas/suggestions are welcome. However, there’s a lot of investment involved in availing
proven technology by reputed scientists/biologists for the project and hence any
changes/modifications is strictly not permitted without prior and written concern of the
project owners.
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30) What happens if my piece of land yields lesser than the others. Will I get lesser
returns?
As in cultivation, the yields might/would differ depending on lots of reason/s therefore the
collective yield is divided cumulatively among all the members, irrespective of individual
contribution.
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31) What if I wish to sell the property in the mid of the term?
As the owner you are free to transfer/change the ownership however the new owner has to
agree/follow the same agreement of cultivation as done originally. Any/all cost/s immerging
out of the transfer has to be borne by the customer or the new party.
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32) As a member, is everything free of cost in the project guest house?
The project guest house has been planned to provide basic facilities for members, planning
for a short visit (with prior intimations). The stay would be charged at very nominal expenses
so as to have a fair and equal usage among all the members. However ,the members are
requested to use the facility only if needed and only for a short time as this would not be a
full time accommodation.
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33) What is the project exit plan?
The sandalwood harvest will bring the project to an end. Thereafter, the entire project would
be handed over to the customers after forming a general body and electing community
leaders. However customers who are interested can approach the project owners for another
term of harvesting with terms and conditions decided at that point (depending on prevailing
conditions).
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