Commercial Hydroponics Viability & Economic Preview
“I am delighted that HGTIPL is being given this opportunity to demonstrate the capabilities of Hydrophobic production in India. I am a former Officer of the Indian Navy. Upon my retirement, I migrated to Australia in 2001. I learnt Hydroponics from the best of growers and consultants in the Hydroponics Industry in Australia and I am a passionate proponent and pioneer in the field of Hydroponics in India. Our firm is distinguished by the extent of its global knowledge base, in the way we think, the way we work together and the way we are structured to provide the best practices Hydroponics. I am confident that our well qualified team will consistently exceed your expectations and we honestly believe that we can bring you true value and prosperity on the table. Farmer-In-Chief Lt Cdr (retd) CV Prakash
Agenda Executive summary What is Hydroponics How is it implemented Hydroponics in India Commercial Viability Who we are How can we help Success stories
Importance of water Water is Food is Life. No Water-No Food! Simple Hydroponics Needs Clean Water
What does a plant need to grow ? Soil is just a medium to provide nutrients to the plant. Water is as good a medium as soil. Sun Light Nutrients Soil Water
Executive Summary The Issue facing us Need for a solution Introduction to Hydroponics Advantages of Hydroponics Today Indian farmers face the following challenges Drought conditions and unpredictable weather Rising temperatures Polluted water systems Lack of irrigation Poor water management Under-nourished or over nourished crops India today needs food security which entails that all people at all times have physical and economic access to safe and nutritious food to meet dietary needs. Lack of water for agriculture leads to production of lesser food which means more hunger and malnutrition We are going to highlight the need for technology in agriculture that can contribute towards water savings and have a positive impact on food production and availability. Hydroponics is one methodology of soil-less cultivation. It is a method of growing plants using mineral nutrient solutions, in water, without soil. The earliest published work on growing terrestrial plants without soil was the 1627 book Sylva Sylvarum by Francis Bacon. Some of the reasons why hydroponics is being adopted around the world for food production are the following: No soil is needed for hydroponics The water stays in the system and can be reused It is possible to control the nutrition levels accurately It is stable and provides high yields hence economically viable Pests and diseases are easier to get rid of Ease of harvesting It is better for consumption
Presentation aims to Hydroponics Make you aware of Describe advantages of Implementation strategy of Commercial viability of
What is Hydroponics
Basics of Hydroponics Vegetables grown from simple hydroponics in Bangalore What is Hydroponics It is the practice of growing plants without soil. Plants can be grown in plain nutrient solution or in sterile substrates, therefore microbe free. Hydroponics uses less than 1/10th - 1/5th of the water used in soil cultivation. It saves a lot of water. No weeds to deal with. Less space, higher yields. Nutrient rich water Air Stone Water Pump Plants samplings
Types of hydroponics – based on water flow Static solution culture Continuous flow culture In static solution culture, plants are grown in containers of nutrient solution, such as glass jars, plastic buckets, tubs, or tanks. The solution is usually gently aerated but may be un-aerated. A hole is cut in the lid of the reservoir for each plant. There can be one to many plants per reservoir. A home made system can be constructed from plastic food containers or glass canning jars with aeration provided by an aquarium pump, aquarium airline tubing and aquarium valves. In continuous-flow solution culture, the nutrient solution constantly flows past the roots. It is much easier to automate than the static solution culture because sampling and adjustments to the temperature and nutrient concentrations can be made in a large storage tank together. A popular variation is the nutrient film technique or NFT, whereby a very shallow stream of water containing all the dissolved nutrients is recirculated past the bare roots of plants in a watertight thick root mat, which develops in the bottom of the channel. Subsequent to this, an abundant supply of oxygen is provided to the roots of the plants.
Types of hydroponics – disposal of nutrient waste Run to Waste (Open) Recycled (Recirculating) Nutrient Reservoir Waste Tank “Run-to-waste” describes those systems where the excess nutrient or “run-off” is not re-circulated. Conventional ‘soil culture’ is a type of run-to-waste system. Media with a high water holding capacity are used (e.g. soil, coconut fibre, Rockwool). Feeds are small and infrequent. The ‘run-off’ is either drained directly onto the ground or is collected. Collecting the run-off allows feed volume and frequency to be calculated more accurately. This helps prevent under-dosing or over-dosing. Water Flow In a re-circulating or recycled system the water is pumped from a main reservoir to the plant root system , the excess water and nutrients are then returned to the reservoir. Trace elements are topped up as used and regularly dumped and refreshed to keep the system stable . They are more cost effective in both water and nutrients. Because of their nature and the methodology used to top up the nutrients, re-circulating systems tend to require more regular checking and correcting of pH , and EC levels which adds that little bit more maintenance time spent in the grow room Nutrient Reservoir Water Flow Water Flow Water Flow
Types of hydroponics – based on medium / substrates Expanded clay aggregate Growstones Baked clay pellets, are suitable for hydroponic systems in which all nutrients are carefully controlled in water solution. The clay pellets are inert, pH neutral and do not contain any nutrient value. Growstones, made from glass waste, have both more air and water retention space than perlite and peat. This aggregate holds more water than parboiled rice hulls. Coir Perlite Coco Peat, also known as coir or coco, is the leftover material after the fibres have been removed from the outermost shell (bolster) of the coconut. Coir is a 100% natural grow and flowering medium. Coconut Coir is colonized with Trichoderma Fungi, which protects roots and stimulates root growth. Perlite is a volcanic rock that has been superheated into very lightweight expanded glass pebbles. It is used loose or in plastic sleeves immersed in the water. It is also used in potting soil mixes to decrease soil density. Sand Gravel Sand is cheap and easily available. However, it is heavy, does not hold water very well, and it must be sterilized between use. The same type that is used in aquariums, though any small gravel can be used, provided it is washed first. Indeed, plants growing in a typical traditional gravel filter bed, with water circulated using electric powerhead pumps, are in effect being grown using gravel hydroponics. Gravel is inexpensive, easy to keep clean, drains well and will not become waterlogged.
Types of hydroponic systems Nutrient Film Technique Ebb and flow Nutrient film technique (NFT) is a hydroponic technique wherein a very shallow stream of water containing all the dissolved nutrients required for plant growth is re-circulated past the bare roots of plants in a watertight gully, also known as channels. The depth of the recirculating stream should be very shallow, little more than a film of water, hence the name 'nutrient film'. This ensures that the thick root mat, which develops in the bottom of the channel, has an upper surface, which, although moist, is in the air. Subsequent to this, an abundant supply of oxygen is provided to the roots of the plants. In this, there is a tray above a reservoir of nutrient solution. Either the tray is filled with growing medium (clay granules being the most common) and planted directly or pots of medium stand in the tray. At regular intervals, a simple timer causes a pump to fill the upper tray with nutrient solution, after which the solution drains back down into the reservoir. This keeps the medium regularly flushed with nutrients and air. Once the upper tray fills past the drain stop, it begins recirculating the water until the timer turns the pump off, and the water in the upper tray drains back into the reservoirs.
Types of hydroponic systems Drip Method Deep water Drip Irrigation is a great water-saving solution for hydroponic gardens. The basic premise is that nutrient solution is pumped out of the reservoir by a main line, usually 1 inch, which is divided into ? inch lateral lines that run directly alongside the plants. These lateral lines contain a dripper (emitter) for each plant, which is placed directly at the plant base and provides a controlled flow of water directly to the roots. The hydroponic method of plant production by means of suspending the plant roots in a solution of nutrient-rich, oxygenated water. Traditional methods favor the use of plastic buckets and large containers with the plant contained in a net pot suspended from the centre of the lid and the roots suspended in the nutrient solution. The solution is oxygen saturated from an air pump combined with porous stones. With this method, the plants grow much faster because of the high amount of oxygen that the roots receive
Primary benefits of Hydroponic cultivation Reduced labor time of digging and weeding Reduced fungal disease, little exposure to moisture Greater control on environment, yields are predictable and budgeting is easier Tailored macro and micro nutrition for humans, even distribution Effective recycle resulting reduced water usage Land Labour Nutrition Diesease & Pest Water There are two chief merits of the soil-less cultivation of plants. First, hydroponics may potentially produce much higher crop yields. Also, hydroponics can be used in places where in-ground agriculture or gardening are not possible.
Secondary benefits Plants in hydroponics gain in Plants are protected from UV radiation as they are within a green house Offers safe biological control of insects and pests Water is reused effectively Allows nutrients to be reclaimed, re-balanced and re-used Can be protected from unpredictable weather patterns Have a good root system that is not at risk from contaminants and diseases Make efficient use of labour, which is increasingly expensive Produce outstanding crops by using optimum nutrient formulations Production in Off season possible when market prices are highest.
Sample yield numbers (conservative)
Market takers for hydroponic plants
Hydroponic agriculture – the global outlook Global acreage under cultivation There has been massive growth in hydroponic cultivation in a number of forward thinking countries. For instance, in Australia, the area under hydroponic crop production went from 155 to 2500 hectares from 1990 to 2008. The world commercial hydroponics industry has grown 4 to 5 fold in the last 10 years and is currently estimated at between 20,000 and 25,000 hectares with a farm gate value of US$6 to $8 Billion. Future belief The future lies in locally grown and sold produce limiting the ‘road miles’. This method of growing our food is a more sustainable model than those currently practised. The consumer is becoming increasingly concerned over health issues, environmental issues, even water consumption cost and availability……… these all are drivers for the further development of hydroponic growing techniques. Global reach Main countries using hydroponics are Holland, Spain, Australia, USA, Canada, NZ, Italy, Canada, Mexico, China. Even our neighbor Pakistan has adopted Hydroponics cultivation with major government support. Main crops are Cucumbers, Tomato, Lettuce, Strawberry, Herbs, Capsicums, cut flowers etc. but not limited to these alone.
How is it implemented
Standards Laws Water Source Container System with Air pump Seedlings Customers People Land Nutrients Green House The resource universe for a hydroponic system involves some capital intensive items like setting up of a container system, seedlings, nutrients in the form of fertilizers, people to train and manage the farm along with respective standards and laws which govern the production of the crop. The most important aspect of the entire operation is the identification and management of customers to whom this would be sold to. The organization needs to understand customer and market expectations and develop interactions for a profitable future. Resource universe of commercial hydroponic agriculture
Plants grown in hydroponic systems Tomato's Lettuce Bell Pepper Cucumber Strawberries Water Lemon Potato Onion
Nutrient Solutions / Fertilizer Introduction Plant nutrients used in hydroponics are dissolved in the water and are mostly in inorganic and ionic form. Primary among the dissolved cations (positively charged ions) are Ca2+ (calcium), Mg2+ (magnesium), and K+ (potassium); the major nutrient anions in nutrient solutions are NO? 3 (nitrate), SO2? 4 (sulfate), and H 2PO? 4 (dihydrogen phosphate). Nutrient recipe Numerous 'recipes' for hydroponic solutions are available. Many use different combinations of chemicals to reach similar total final compositions. Commonly used chemicals for the macronutrients include potassium nitrate, calcium nitrate, potassium phosphate, and magnesium sulfate. Various micronutrients are typically added to hydroponic solutions to supply essential elements; among them are Fe (iron), Mn (manganese), Cu (copper), Zn (zinc), B (boron), Cl (chlorine), and Ni (nickel). Pre-mixed concentrated nutrient solutions are generally purchased from commercial nutrient manufacturers by hydroponic hobbyists and small commercial growers, several tools exists to help anyone prepare their own solutions without extensive knowledge about chemistry.
Implementation process The HGTIPL assisted implementation process is a pro-active methodology designed for quick installation while keeping parameters in mind such maximum optimization of space and costs. It is designed to ensure smooth functioning of Hydroponic business functions, recovery of revenue and adding value to the to the business, in a optimized and sustainable manner. Sustain Implement Procure Design Plan Implementation Framework HGTIPL Implementation Lifecycle The HGTIPL methodology of implementation of an end-to-end hydroponic system will assist you in quick recovery of your investment while keep environmental factors unaffected. Some of the key benefits of our methodology is :- Easy and quick installation Assess the climate and suggest best crops Less time to go to market Clean build to operate procedures Training of people to manage operations Identify opportunities for go to market Assist in growth areas in your region Prepare sustenance procedures Yearly audits for maintaining higher yields
Implementation process details
Hydroponics in India
Opportunity in India Production and labor costs in developed countries are increasing thereby need to import high quality cheaper produce is increasing. India has rich climatic conditions positioning us favorably to market such produce. Labor costs in India as well as inputs makes India an ideal destination for food outsourcing. Indian producers can address both domestic as well as International markets such as ME/EU/USA/Far East. Has intelligent manpower. Can learn fast the operating protocols. Usually gets a better price based on looks, texture, taste, consistency on daily basis, high nutrition value, reliable supply year round etc. A country that can produce super-computers, satellites can definitely adopt Hydroponics easily in the author’s view. Development in India Marketing channels in India Wholesale Channels Retail Channels Supermarket chains/Export markets. Cooperatives to help sell their produce. Producers specialize in one or two types of produce mainly and have full control over their produce. Outside India Sales opportunities abound from Indian producers due to better production costing achievable. Markets are in USA, EU, Far and Middle East. India has excellent connectivity to above by land, sea and air. Freight costs from India are high at this time and with better governmental support can be alleviated.
Catalyst for hydroponic farming in India 1 2 3 4 Big growth markets High population mean higher consumption capability Trend moving towards quality of food rather than price / quantity Organic and clean foods getting preference Low cost of labor Manual labor is easily accessible Low cost to setting up and maintaining operations Easy communication and teaching arenas Access to technology Easy access to green-house and hydroponic technologies Access to water pumps and HVAC systems Easy access to fertilizers and IPM technologies Knowledge Good knowledge of hydroponic methodologies Knowledge of markets and customers Understanding of crops cycles and related diseases & pests
SWOT analysis for hydroponic farming Makes any land with water source useful for production High Yields from lesser spaces Produce can get premium prices Less labor means lesser costs Effective IPM possible Brand, package and sell produce as clean, healthy and unique Creation of more growth products such as gingers, saffron, turmeric etc. which are cash crops. Gaining good traction in India Can be raised to sell niche markets which high returns No industry association or bodies in hydroponics yet High Capex Needs more diligence and devotion Cannot compete with soil grown produce No dedicated standards and laws in India Must not compete on price, but on quality. Perception that Hydroponics is unnatural. Certain soil grown produce are being marketed vigorously and may be a threat to hydroponic produce. E.g. Calyx-On Tomato Inconsistent supply arrangement can ruin market intake SWOT Hydroponics in India Weakness Threats Strengths Opportunities
Challenges in India to overcome Capital costs Trained Manpower Education required Attention to shifting market demands Attention to crop growing or cultural practices Knowledge of IPM Knowledge of Environment Controls in GH Knowledge of Climate Controls Knowledge of Bio-friendly insects Indian hydroponic practitioners needs to overcome Body of knowledge We need to convene an association in India for Commercial Hydroponic Growers even before we start the first commercial system in our country. We have a student of Simplified Hydroponics already having an association called Indian Hydroponics Pioneers Association. Formulate industry standards We need to use foreign Hydroponic experts to start with. This is an absolute must as there are no resource people in India at this time. Industry standards will be established as time goes by and more Indians adopt this kind of cultivation. Marketing of hydroponic produce It is marketed more on the quality and consistency, rather than the method of production. More and more Indians are demanding high quality, pesticide free, fresh produce. Money not the criterion. People are aware of dangers of pesticides, global warming and its ill effects. Media plays an important role. Consistency, quality and yields possible only by modern techniques of cultivation.
Cost buckets Capital costs Operational costs Drip System Land Green House Soil Preparation Mulching Sheet Project Constancy Poly Bag Coco Pear Trellising Clips Nutrients Seeds Seedling Salary Electricity
Revenue flow (when land is owned) Revenue Maps (with capital cost equated over 5 yrs) Capital costs Assuming land is currently owned by the owner the capital costs per acre required would include Cost of land Rs 0 lakhs Cost of Green House Rs 19 lakhs Drip Irrigation Rs 5 Lakhs Soil preparation Rs 40,000 Mulching sheet Rs 20,000 Project consultancy Rs 6 lakhs Grand Total (Every 5 yrs) Rs 30.5 lakhs (approx) Operational costs The operational costs of a hydroponic farm growing tomato's for 1 acre per year would include Poly bags Rs 24,000 Coco pear Rs 1,35,000 Trellising thread and clips Rs 25,000 Nutrients per cropping cycle Rs 1,00,000 Organic Pesticides per cycle Rs 30,000 Seeds Rs 1,44,000 Salary for 2 Employees Rs 240,000 Electricity Rs 60,000 Grand Total (per year) Rs 9.0 lakhs (approx) Revenues Assuming tomato growth for 1 year per acre assumptions include Number of Kgs yield per plant 5 Kg Number of plants per yield 12,000 plants Number of yields per year 2 yields Price per Kg sold in the market Rs 20 per kg Total calculation 5 * 12000 * 2 * 20 Grand Total (per year) Rs 33.5 lakhs (approx) * Equated profit about 19 lakhs per year
Revenue flow (when land is bought) Revenue Maps (with capital cost equated over 5 yrs) Capital costs Assuming land has been bought by the owner the capital costs per acre required would include Bought land Rs 20 Lakhs Cost of Green House Rs 19 lakhs Drip Irrigation Rs 5 Lakhs Soil preparation Rs 40,000 Mulching sheet Rs 20,000 Project consultancy Rs 6 lakhs Grand Total (Every 5 yrs) Rs 30.5 lakhs (approx) Operational costs The operational costs of a hydroponic farm growing tomato's for 1 acre per year would include Poly bags Rs 24,000 Coco pear Rs 1,35,000 Trellising thread and clips Rs 25,000 Nutrients per cropping cycle Rs 1,00,000 Organic Pesticides per cycle Rs 30,000 Seeds Rs 1,44,000 Salary for 2 Employees Rs 240,000 Electricity Rs 60,000 Grand Total (per year) Rs 9.0 lakhs (approx) Revenues Assuming tomato growth for 1 year per acre assumptions include Number of Kgs yield per plant 5 Kg Number of plants per yield 12,000 plants Number of yields per year 2 yields Price per Kg sold in the market Rs 20 per kg Total calculation 5 * 12000 * 2 * 20 Grand Total (per year) Rs 33.5 lakhs (approx) * Equated profit about 15 lakhs per year
Revenue flow (when land is leased) Revenue Maps (with capital cost equated over 5 yrs) Capital costs Assuming land is currently leased by the owner the capital costs per acre required would include Cost of Green House Rs 19 lakhs Drip Irrigation Rs 5 Lakhs Soil preparation Rs 40,000 Mulching sheet Rs 20,000 Project consultancy Rs 6 lakhs Grand Total (Every 5 yrs) Rs 30.5 lakhs (approx) Operational costs The operational costs of a hydroponic farm growing tomato's for 1 acre per year would include Rent of Land Rs 2,40,000 Poly bags Rs 24,000 Coco pear Rs 1,35,000 Trellising thread and clips Rs 25,000 Nutrients per cropping cycle Rs 1,00,000 Organic Pesticides per cycle Rs 30,000 Seeds Rs 1,44,000 Salary for 2 Employees Rs 240,000 Electricity Rs 60,000 Grand Total (per year) Rs 11.5 lakhs (approx) Revenues Assuming tomato growth for 1 year per acre assumptions include Number of Kgs yield per plant 5 Kg Number of plants per yield 12,000 plants Number of yields per year 2 yields Price per Kg sold in the market Rs 20 per kg Total calculation 5 * 12000 * 2 * 20 Grand Total (per year) Rs 33.5 lakhs (approx) * Equated profit about 16.5 lakhs per year
Reasons for failure Venture not established in a realistic economic framework like manageable loan repayments, cash flow etc Selection of system/crop/markets/correct management not done Crop production management inadequate Yield and quality did not meet budget projections Lack of diligence on part of the crew Non adherence to growing protocols Insufficient attention to marketing Lack of necessary labour Incorrect pricing of produce Product not tailored as per demand Critical matters to be addressed Profitability is linked to Production scale, increasing returns to increasing size. Ability to supply promised amount with quality and consistency Capacity to Value add and/or Find and exploit a unique and high return/value market niche
Who we are
Who we are CV Prakash The Farmer In Chief Mrs.Sangeeta Bojappa Moorthy Chief of Operations Hydroponic Greenhouse Technologies, erstwhile Institute of Simplified Hydroponics, was co-founded by CV Prakash, an ex-navy submarine officer, based in Melbourne, Australia and Mrs.Sangeeta Bojappa Moorthy in whose veins... run… the nutrient solution of Hydroponics. It is their vision and mission to see Hydroponics/Soil-less cultivation spread throughout India, in a very big way. Today, we, at HGT, are leaders in this field in India and our hard earned name has transcended international borders. The “Pet Bharo” Project, meaning in Hindi, ‘Fill Your Tummy’ project and as we fondly christened it so, is a strong brand name, so much so that, when people call us they ask “Is this Pet Bharo? It’s a word synonymous with Indian Hydroponics. This achievement has been no mean task. It has been nurtured by persistence, hard work, focus, integrity and above all, a strong sense of personality, character and ethos. When you approach us you will see for yourself how we make it a point to serve you with humility and a very deep urge to help you.
How can we help
How can we help Setting up of Turnkey Commercial Hydroponics/Soil-less Greenhouse systems for fruits, vegetables, herbs, aromatic and medicinal plants Consultancy for Hydroponics/Soil-less Cultivation, Feasibility studies and Project Reports. Training in Basics of Commercial Hydroponics Setting up broad acre Hydroponics/Soil-less Food Parks with all facilities. Supplies of Backyard Greenhouse systems Supply of Hydroponic nutrients and soil-less substrates like Coir Peat/Perlite etc. Conducts seminars with foreign experts on Hydroponics/Soil-less cultivation from time to time. Water testing facilities and reports rendered. Supply of testing equipment's for pH/TDS/EC/Temperature probes etc. Our key activities
Some successful commercial installations Hydroponic Strawberry System The Institute of Simplified Hydroponics Bangalore, India is proud to announce the setting up of the first Hydroponics Commercial Strawberry Production system measuring one acre of climate controlled Greenhouse. This is the first Pilot and is expected to increase by hectares in a couple of years after the success of the first one. Hydroponics Lettuce/Herbs System ISH bagged on 23rd March 2011, its second Commercial Hydroponics Lettuce/Herbs order" from a client in Coimbatore. This within three months of its first commercial hydroponics greenhouse order to set up a strawberry greenhouse at Bangalore. The state of the art Lettuce/Herbs Greenhouse will initially start with a one acre pilot expanding to 4 acres in next one year.