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Blossom Fulbari

Blossom Fulbari. Presenter: Ginish Jung Dahal MBA 5 th Term Roll No: 17307. Introduction to Blossom Fulbari. Company Name: Blossom Fulbari Location: Sankhamul , Baneshwor Products : Production of Gladiolus and Rose cut flowers

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Blossom Fulbari

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  1. Blossom Fulbari Presenter: Ginish Jung Dahal MBA 5th Term Roll No: 17307

  2. Introduction to Blossom Fulbari • Company Name: Blossom Fulbari • Location: Sankhamul, Baneshwor • Products : Production of Gladiolus and Rose cut flowers • Objective: To provide exotic and premium cut flowers and be a leader in Nepali Market • Revenue model: Sale of Gladiolus and Rose cut flowers

  3. Products

  4. Gladiolus Production in Nepal Source: Floriculture Association of Nepal (FAN), 2014/15

  5. Rose Production in Nepal • Source: Floriculture Association of Nepal (FAN), 2014/15

  6. Major Stakeholders of Gladiolus and Rose flowers • Input suppliers: Stationery and general suppliers, Agriculture inputs company, Agro vets and Hardware/Machinery suppliers • Primary Traders: Wholesalers – The fresh flower shoppe (Jawalakhel) • Retailers:Retailers and Gift shops

  7. Value chainAnalysis

  8. Regulatory Body • Ministry of Agriculture and Livestock Development (MOAD) • Department of Agriculture (DOA) • Horticulture Development Directorate (HDD) • Kirtipur (Fruit plant research and production) • Godavari (Flower Development centre, FDC) – Flower saplings, seedling and plants • Ministry of Industries, Commerce and Supplies • Training support in production and management + revolving fund for seedling production and green house • Department of Botany • Research on flower species

  9. Business growth of Cut flowers (in Million NRs.)

  10. Export of Cut Flowers from Nepal (in ‘000 NRs.)

  11. Country wise Export of Cut Flowers (in Kg’s)

  12. Import of Cut Flowers in Nepal (in ‘000 NRs.)

  13. Country wise Import of Cut Flowers (In NRs.)

  14. Political Environment • Liberal democracy • Political stability • Bureaucratic delays and inefficiency in Foreign Direct Investment • Paradigm Shift: Federalism • Ease of doing business: 105 out of 190 countries (Year 2017) • Corruption Perception Index: 122nd out of 180 countries (Year 2017)

  15. Economic Environment • Agriculture GDP contribution 2011-12 -> 35.79 percent2012-2013 -> 34.43 percent2013-2014 -> 33.24 percent2014-2015 -> 32.35 percent2015-2016 -> 32.23 percent2016-2017 -> 30.00 percent Source: Economic survey FY 2016/17 • 0.05% contribution of floriculture to GDP (source: Floriculture Association of Nepal, 2016) • Domestic floriculture industry is contributing Rs 450 million annually on an average to the country’s GDP. (Source: Central bureau of Statistics, 2015) • Inflation rate is expected to rise from 4.48 % in F/Y 2017 AD to 6 % in the fiscal year 2018 AD.

  16. Economic Environment • Annual domestic market volume increased to NRs. 1.34 billion in F/Y 2013/14 AD from NRs. 18 million in F/Y 1993/94 AD. (Source: Floriculture Association of Nepal) • Domestic market grows annually between 10 to 15 percent. • Only 80% of the domestic demand is captured. 20% is imported. (Source: Floriculture Association of Nepal) • Priority sector lending : 10 % in agriculture (Source: Monetary Policy FY 2017/18) • Subsidy of NRs. 30 million for agriculture tools and agriculture development programmes in Biratnagar.

  17. Socio-cultural Factor • Significance of Hindu religion • City of Temples – Kathmandu • Use of flowers in Marriage and Pasni ceremony • Nepalese festival sales • Customization : Demand as per wish • Acculturization: Increasing trend of giving flower bouquet as gifts • Homogenization: Price may depend on quality and combination of bouquet

  18. Technological Factor • Access to digital technology: • Increasing trend of using internet • Mechanized production: • Drip and sprinkler technology – 75% increase in efficiency (IDE,2002)

  19. Technological Challenges • Lack of cold storage center • Lack of automated sprinkler technology

  20. Legal Environment • Special industries such as floriculture, there is a Flat tax rate of 20% • Private Firm Registration Act, 2014 AD • Company Act, 2063 BS • Customs Act, 2074 BS • Trade policy Act, 2072 BS • Industrial Enterprise Act, 2073 BS • Starting: Section 3, 4, 5, 8, 11, 12 • Classification: Section 15 • Valuation: Section 16

  21. Legal Environment • Labor Act, 2074 BS • Wage: Monthly salary: NRs. 13,450 / Daily wage : NRs. 517 • Probation period: 6 months • Working hour : 8 hours a day / 48 hours a week • NARC Act, 2004 AD • Seed Act, 2045 BS • safeguards quality of seeds • Pesticide Act, 2048 BS • protection against particular hazards

  22. Environmental environment • Adverse environmental impacts • Extensive use of fertilizer and pesticides: • Eutrophication (depletion of oxygen) • threaten supply of drinking water • cause atmospheric emissions • Affects crop quality • Threaten human, animal and plant life • Solid waste management: Damaged flowers

  23. International Trade • Border trade between Nepal and India goes unrecorded : Mainly in rainy and winter season • Imports NRs. 3,01,34,883 worth of cut flowers (source: Floriculture Association of Nepal, 2013/14) • Tariff Measures not imposed • Non – Tariff measures applicable in USA, Japan, European Union Nations and India • Phytosanitary control • Breeders right and IP • Quality and grading standards • Labeling requirements • Trade related environmental and safety issues • Convention on International Trade in Endangered Species (CITES) • USA – preferential rate of 1.7% , MFN rate of 4.8%

  24. Provisions of the WTO: Sanitary and Phyto-sanitary Agreement • IMPORT: • Fourteen plant quarantine check posts in Indo-Nepal and China-Nepal border • One in Tribhuvan International Airport

  25. EXPORT • USA • PPQ 368 Notice of Arrival • Commercial invoice with box count • Weight and Genera (species and varieties) • Packing list • Phytosanitary certificate(information of growing area and treatment) • India • plant quarantine (Regulation of Import into India) • banned and restricted imports item • permission procedures

  26. References • Economic Survey, Ministry of Finance, 2016/17 • Industrial Enterprise Act, 2073 • Company Act, 2063 • Labor Act, 2074 • Monetary Policy, Nepal Rastra Bank, 2017/18 • Websites: • http://cbs.gov.np/image/data/2016/Nepal%20Commercial%20Floriculture%20Survey%202072_73.pdf • http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.430.3902&rep=rep1&type=pdf • http://www.fanepal.org.np/files/listingfiles/Nepalese%20Floriculture%20Book-%202072.pdf • http://www.fanepal.org.np/files/listingfiles/A%20Report%20on%20Economic%20analysis%20of%20Gerbera,%20Gladiolus%20&%20Carnation%20-2017.pdf • http://www.fanepal.org.np/files/listingfiles/Rose%20Flower%20Cultivation%20Technology%20-%202073.pdf • http://www.aec-fncci.org/wp-content/uploads/2015/01/Trade-Competitiveness-Floriculture-Report.pdf • https://thehimalayantimes.com/business/561-commercial-flower-farmers-nepal/ • http://cbs.gov.np/nada/index.php/catalog/70/data_dictionary

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