Aayush

Agritech Company Limited

Project Proposal to the Board of Directors Mr. Shivakumar, Chairman and Managing Director of Agritech Company Limited, entered in to the board room of the corporate office in Ahmedabad. While entering, he was thinking about the proposal of a new project which he is going to present to the Board of Directors of his company. The project proposal was on venturing into a floriculture unit which can produce 0.64 million cut roses and cater to local and foreign market. It was a hot summer day in the last week of March, 1994. The Board of Directors of Agritech Company Limited had to make a decision about the feasibility and viability of this project in a short time as the investment in this project has to be made immediately, so as to capitalize on the favorable marketing season of flowers in international market for the coming year, i.e., October - May. Mr. Shivakumar had a final look on the brief description of the project (Exhibit 1), which he had obtained from the project consultants and took some important key notes about the nature of the product, domestic and export markets for the product and production, financing and profitability aspect of the project. After the presentation made by Mr. Shivakumar, the Board of Directors raised some issues regarding the critical decision areas to be looked into this project, financial feasibility of the project and sensitivity of this project to various factors affecting international business unit. They felt these were to be dealt in detail, as this project involves international marketing and domestic marketing of the product leading to complex problems which may reduce the viability of the project. In addition, the project also involved the problems of speedy project implementation. Overall, the Board of Directors felt that this proposal can be pursued with utmost urgency and high priority, as the nature of the project was in line with the company's objective of developing agriculture and...