PROJECT REPORT

A BUSINESS PLAN FOR AGRICULTURAL DRONES

Submitted in partial fulfilment of the requirements for the award of the degree of

B.B.A. (Bachelor of Business Administration)

By
ARYAN SETHI (Department No. 1913281096062)
NAVNEET.S (Department No. 1913281096037)
MUFADDAL AZIZ ATTARIA (Department No. 1913281096041)

Under the guidance of

Mr. S.KARTHIKEYAN, B.COM., M.B.A., B.G.L., M.Phil.,
F.C.A., Assistant Professor
Department of Business Administration
Ramakrishna Mission Vivekananda (Evening) College (Autonomous)
Chennai – 600 004

Ramakrishna Mission
Vivekananda
(Evening)
College (Autonomous) Mylapore, Chennai – 600
004 2021 – 2022
DECLARATION
DECLARATION
 CERTIFICATE

This is to certify that this Project Work is the bonafide work ofMUFADDAL AZIZ
ATTARIA,1913281096041, in partial fulfillment for the award of Bachelor's Degree in
Business Administration of Ramakrishna Mission Vivekananda (Evening) College
(Autonomous), affiliated to the University of Madras, Chennai.

2.S
R.S
Signature of the Guide Signature of the Head of the Department
R. SRIRAM
Head of the Department.
Dept.of Business Administration

R.K.M.Vivekananda Collag9
Evening College ( A u t o n o i 3 )
Mylapore, Chennai-60 004

Submitted for the Autonomous VIVA-VOCE Examination to be held in MAY 2022 at

Ramakrishna Mission Vivekananda (Evening) College (Autonomous), affiliated to the
University of Madras, Chennai.

Name &Signature of the Internal Examiner

Name &Signature of the External Examiner

 DECLARATION

IMUFADDAL AZIZ ATTARIA, 1913281096041, hereby declare that the Project Report for the
partial fulfillment of the degree of Bachelor of Business Administration entitled "A
BUSINESS PLAN FOR AGRICULTURAL DRONES is my original work and this Project Work has
not formed the basis for the award of any degree, associate-ship, fellowship or any other
similar titles.

Place: Chennai

Date: 21-05-2022 Signature of The Student

 ACKNOWLEDGEMENT

This Project Report could not have been prepared if not for the support and guidance of a
number of people.

Our Head of Department, Mr. R. Sriram, for his overall support & guidance.

Our Faculty Guide, Mr. S. Karthikeyan, Professor in the Department of Business

Administration for his help in preparation of my final Project Report. no
 INDEX

S.NO DESCRIPTION PAGE

NUMBERS
1 INTRODUCTION & OVERALL STRATEGIC ASPECTS 1-24
Background & Business opportunities 1-5
The business proposition 5-7
Branding 7-8
Vision, Mission & Statement of objectives 9-11
SWOT Analysis 12-20
Pestle Analysis 21-22
Company Ownership 23
Legal Structure 24
2 OPERATIONAL ASPECTS INCLUDING SUPPLY CHAIN & 25-29
HUMAN RESOURCE
Operation & Process 25
Plan Layout & Interior 26
Organization Structure 27-29
3 MARKETING ASPECTS 30-40
Scope of Drone Market 31
Need for our products & services 32
Value & volume of our sales with existing customers 32
Overcoming barriers 32
Target consumer group 33
Marketing Mix Strategies with respect to 4Ps 34-40
4 FINANCIAL ASPECTS 41-43
5 SUMMARY 44
CHAPTER 1 – INTRODUCTION & OVERALL
STRATEGIC ASPECTS
a. Background & Business Opportunity
India is primarily an agrarian economy. Agriculture remains the chief source of income for
the majority of the rural households. India’s economy is also heavily dependent on the
agricultural produce that constitutes a major portion of its exports as well. However, despite
mounting importance of agriculture, the sector is still far behind in technological
advancements. Crop failure due to adverse weather conditions and uncontrolled pests’
issues have been the key contributors to this scenario. Moreover, Indian farmers are even
now dependent on monsoon rains for irrigation and use age-old methods for other farming
practices. Hence, the quality and quantity of agricultural produce is sometimes
compromised in spite of the relentless efforts of farmers.

Fortunately, there is hope. What if crop failure could be detected in advance, and necessary
steps could be taken? There can be a juxtaposition of traditional farming methods and
innovative solutions like agricultural-drones to tackle the problems ailing the agricultural
sector in India. Drones can become major players in the area of crop surveillance, thus
leading to better chances of failure mitigation.

1. Introduction about the company

• Fulture is a technology company that manufactures unmanned aerial vehicles (drones)
used in agriculture operations mostly in yield optimization and in monitoring crop growth
and crop production.
• Our proposition is to assemble and sell premium grade agricultural drones to farming
companies that require reliable and economical means to exceed at farming. We will
source our parts and tech from local providers and manufacturers which would ultimately
lead to employment opportunities.
• Our customers can expect to receive drones in a few days upon order which will contain a
drone ship, controller, manual, service papers. We will have an active post purchase
relationship with our customers.

1|Page
• The primary source of income will be from drone purchases. Secondary sources will be
from services and maintenance. We will target large distributors who are in farming.
• We plan on advertising largely on an internet platform to spread our message with our own
website talking about the latest innovations in drone services and technology.

2. What is an Agricultural drone?

• An agricultural drone is an
unmanned aerial vehicle used in
agriculture operations mostly in
yield optimization and in
monitoring crop growth and crop
production. The aerial view
provided by a drone can assists in
the information of crop growth
stages, crop health and soil
variations in real time helping in any mitigation if required. Multispectral sensors can
collect image in near-infrared as well as in visible spectrum of the electromagnetic
spectrum.

• Drones do not have any operational delays and can work double the speed of human labor.
In comparison to traditional spraying methods, agricultural drones use ultra-low volume
(ULV) spraying technology, thus saving more water.

3. How does an agricultural drone work?

2|Page
• Capture of High-resolution images while spraying

• View of Data in real time

• Data is processed in the cloud & translated into useful information

3|Page
• Maps providing different type of information from the field e.g. Soil quality, plots size,
plant health

b. THE BUSINESS PROPOSITION

4|Page
We equip operators with modern day technological know-how as properly as innovative
workflows, making farming more efficient than ever.

Our Company is an exclusive agricultural drone manufacturing company. It is one of the

first companies to manufacture agricultural drone in in India. We can consider that from
being considered as mere “toys of hobbyists”, “flying cameras of the rich”, drones have
further penetrated vast areas of our economy and is starting to become a major part of the
daily lives of humans in the 21st century. My company will be a FAA-approved aeronautical
training program certified company, we produce drones for commercial & agricultural
purposes.
The company basically produces drones for agricultural use and it consists of drone of many
features. We consider drones to be the future of agricultural. Our Agricultural Drone
Manufacturing Company will be registered and licensed business enterprise in the drone
industry that will specialize in agricultural drone business. Although our business will be
based in Chennai, Tamil Nadu where we were intend setting up our corporate office, but
we intend working for clients both in Indian market and international markets as well. We
will setup our manufacturing sites in Tamil Nadu for now. Our Company will be involved
in the all aspect of manufacturing and agricultural drone services

As mentioned before, agricultural drone technology is undoubtedly the future of the Indian
agrarian community. It can transform traditional farming methods in uncountable ways.
Even though this technology is more complex to be familiar with, it will yield its results in
no time once learned.

Farmers must understand the entire process. Determination of goals, creating an

equilibrium in the drone and software utilized, and being familiar with the principles of
using such technology will stand as a challenge. The farmers will inevitably need
comprehensive training or partnerships with third-party experts in the drone industry for
the acquisition of reliable data. Drones have changed the course of obtaining data in almost
every type of industry, and will only deem to become bigger and better in the coming years.

The sales of our product our determined solely by the customer demand for the product as
we process the order to our engineers to assemble the parts of the drones based on the orders
we receive from our customers.

5|Page
 Our Drones fly over the field and take high resolution pictures. The data gathered is directly
sent to the cloud/software and made available to the customer. Thanks to this data, the user
can select the information wanted from the images and make different prescription maps
depending on the operation the farmer wants to perform on the field. This data is used to
adjust the amount of inputs (seeds, fertilizers, pesticides) that would need to be sprayed in
the field accordingly.

Keys to Success
• Experience in a Niche
• Excellent Marketing
• Partnerships & Investments
• Demo Contest
• Operational Excellence
• Commercial Grade Equipment’s
• Tie-ups with Governments

c. BRANDING:

BRAND NAME: ‘FULTURE’ OUR

SLOGAN: Future of Agriculture Our
Logo:

6|Page
• The very basic aim of brand name is that it should be unique and stand out from its
competitors.

• It should be easy to pronounce, remember, and identify. It should relate to the product in
some way, offering an idea about the purpose, benefits and quality of the products produced
by the company.
 While taking all the above said purpose of a Brand name into consideration, we’ve
named our company as Fulture.
 Fulture is named so as we are a young technology in agriculture market and is going
to create a new era for the upcoming generation.

7|Page
 What?
Our company and our products are directly linked with betterment of farmers, providing
the best agricultural inputs and at the right time

How?
We plan on doing so by helping farmers save labor but also help in saving fuels. We want
our product to be their first priority as they are budget-friendly and should be used instead
of huge tractors, as they emit harmful gasses and pollute the environment in the process.

Why?
Our brand is not about making money. Our company’s purpose is the providing the best
facilities and equipment required for the upliftment of the agrarian community in a
budgetfriendly manner.

Vision, Mission & Statement of Objectives:

Fulture does not intend to start an agriculture drone’s business without a solid structure; our
intention of starting this business is to build a standard business that can favorably compete
with leaders in the industry. We will ensure that we put the right structure in place that will
support the kind of growth that we have in mind while setting up the business.

9|Page
We will ensure that we hire people that are qualified, honest, customer centric, and are ready
to work to help us build a prosperous business that will benefit all the stakeholders. As a matter
of fact, profit sharing arrangement will be made available to all our senior management staff
and it will be based on their performance for a period of five years or more.

The future of drones in agriculture is also promising, as drones are being developed to act as
mechanical pollinators and to incorporate smart applications, making drones a promising and
affordable technology to address the challenge of growing food insecurity.

Vision:
Regardless of Indians agriculture’s contribution to the GDP, it still lacks at enhancing
productivity and efficiency in the sector to reach the perfect potential. Unsuitable methods for
monitoring crops, water irrigation, using pesticides, and many other necessary farming
activities are adopted.

Need #1: Improve diversity and the future of agrarian community.

Need #2: Enhance overall performance and solve assorted barriers.

Need #3: Reducing guesswork and reducing uncertainty.

Need #4: Cultivate awareness about the potential of drones through approaching promotional
and farming awareness pages to advertise the benefits of agricultural drones

Need #5: Provide plethora of advantages to farmers in a cost effective by enhancing production,
providing 10x faster data for quick decision making, less wastage, accurate, and evidence for
insurance companies.

Need #6: Provide best drone practices through procuring branded parts & assembling them by
our own to ensure the safety and effectivity of the drone.

Our Goals are:

Goal #1: Cultivate brand awareness.

10 | P a g e
Goal #2: Become market leader.

Goal #3: Establish an ideal customer profile.

Our mission:

We expect our proposed solution to Client’s Company’s requirements to provide the following
results:

Financial Missions:
Mission #1: Enhanced production through comprehensive irrigation planning, adequate
monitoring of crop health, increased knowledge about soil health, and adaptation to
environmental changes.

Mission #2: Prevention of wastage leading to less pollution and chemicals in the soil as it
enables optimum usage of all resources such as fertilizer, water, seeds and pesticides.

Mission #3: Useful and acts as evidence for insurance claims as the drones stores efficient and
trustworthy data.

Technical Missions:
Agricultural drones empower the farmer to adapt to specific environments and make mindful
choices accordingly. The gained data helps regulate crop health, crop treatment, crop scouting,
irrigation, and carry out field soil analysis and crop damage assessments. The drone survey
helps boost crop yields and minimize time and expenses.

Mission #1: Provide 99% accurate and faster data to farmers for quick decision making.

Mission #2: Capture the damages that have occurred for the right estimation of monetary
payback to the farmers.

Mission #3: Provide regular updates and help develop strengthened farming techniques to
customers.

11 | P a g e
SWOT Analysis:

Introduction:

SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. By definition,

Strengths (S) and Weaknesses (W) are considered to be internal factors over which you have

12 | P a g e
some measure of control. Also, by definition, Opportunities (O) and Threats (T) are considered
to be external factors over which you have essentially no control.

SWOT Analysis is the most renowned tool for audit and analysis of the overall strategic
position of the business and its environment. Its key purpose is to identify the strategies that
will create a firm specific business model that will best align an organization’s resources and
capabilities to the requirements of the environment in which the firm operates.

In other words, it is the foundation for evaluating the internal potential and limitations and the
probable/likely opportunities and threats from the external environment. It views all positive
and negative factors inside and outside the firm that affect the success. A consistent study of
the environment in which the firm operates helps in forecasting/predicting the changing trends
and also helps in including them in the decision-making process of the organization.

An overview of the four factors (Strengths, Weaknesses, Opportunities and

Threats) is given below:

1. Strengths –

• Strengths are the qualities that enable us to accomplish the organization’s mission. These
are the basis on which continued success can be made and continued/sustained.

• Strengths can be either tangible or intangible. These are what you are well-versed in or
what you have expertise in, the traits and qualities your employees possess (individually
and as a team) and the distinct features that give your organization its consistency.

• Strengths are the beneficial aspects of the organization or the capabilities of an

organization, which includes human competencies, process capabilities, financial
resources, products and services, customer goodwill and brand loyalty. Examples of
organizational strengths are huge financial resources, broad product line, no debt,
committed employees, etc.

13 | P a g e
2. Weaknesses –

• Weaknesses are the qualities that prevent us from accomplishing our mission and achieving
our full potential. These weaknesses deteriorate influences on the organizational success
and growth. Weaknesses are the factors which do not meet the standards we feel they should
meet.

• Weaknesses in an organization may be depreciating machinery, insufficient research and

development facilities, narrow product range, poor decision-making, etc. Weaknesses are
controllable. They must be minimized and eliminated. For instance - to overcome obsolete
machinery, new machinery can be purchased. Other examples of organizational weaknesses
are huge debts, high employee turnover, complex decision-making process, narrow product
range, large wastage of raw materials, etc.

3. Opportunities –

• Opportunities are presented by the environment within which our organization operates.
These arise when an organization can take benefit of conditions in its environment to plan
and execute strategies that enable it to become more profitable. Organizations can gain
competitive advantage by making use of opportunities.

• Organization should be careful and recognize the opportunities and grasp them whenever
they arise. Selecting the targets that will best serve the clients while getting desired results
is a difficult task. Opportunities may arise from market, competition, industry/government
and technology. Increasing demand for telecommunications accompanied by deregulation
is a great opportunity for new firms to enter telecom sector and compete with existing firms
for revenue.

4. Threats –

14 | P a g e
• Threats arise when conditions in external environment jeopardize the reliability and
profitability of the organization’s business. They compound the vulnerability when they
relate to the weaknesses. Threats are uncontrollable. When a threat comes, the stability and
survival can be at stake. Examples of threats are - unrest among employees; ever changing
technology; increasing competition leading to excess capacity, price wars and reducing
industry profits; etc.

SWOT Analysis provide information that helps in synchronizing the firm’s resources and
capabilities with the competitive environment in which the firm operates.

SWOT Analysis of the company:

15 | P a g e
Strengths:

• Relatively low Labor costs: The use of drones, which has revolutionized many sectors, is
now helping farmers cut costs. Our devices are much superior to the manual sprayer
operated by hand pump, in terms of spraying capacity, the quantity of chemicals needed
and the spraying duration leading to low labor costs.

• Lower maintenance cost: drones require considerations every 10-20 battery cycles (or
every 3 months if you’re not flying that often), discharge the battery and then fully recharge
it making it easy to maintain.

• Scheduling flexibility: UAV helps in creating an autonomous manufacturing system by

executing tasks with less human intervention in a time-efficient manner.

• Precision: Since unmanned aerial vehicles use GPS, they can be programmed and
maneuvered and operated accurately to precise locations. Vulture is used for a variety of
farming needs, such as spraying fertilizers and insecticide, identifying weed infestations,
and monitoring crop health. The precision of Vulture saves farmers both time and cost.

• Easily deployable: With advances in control technology, most drones can be deployed and
operated with relatively minimal experience. Combined with the relatively low cost of
drone models, drones are becoming accessible to a wide range of operators. Our drones are
able to fly lower and can travel in all directions, allowing them to easily navigate
traditionally hard to access areas.

• Security: Another plus to drones is that they can gather valuable data during the cycle and
help farmers to aid in security before and after natural disasters to ease recovery.

• Minimizes obvious danger and health risks: With the support of a Drone, numerous
dangers like elevation, wind, weather, and radiation that were earlier suffered by crew
members have been replaced with more viable and safer alternatives. Drones facilitate
straightforward and secure inspections of towering and complicated constructions like oil
and gas refineries, flare stacks, and pipelines.

16 | P a g e
• Saves times: drones help farmers optimize the use of inputs such as seeds, fertilizers, water,
and pesticides more efficiently. This allows timely protection of crops from pests, saves
time for crop scouting, reduces overall cost in farm production, and secures high yield and
quality crops.

• Prevention of wastage: The manual sprayer uses 500-700 ml of insecticide to cover an

acre costing Rs 2,500-Rs 3,000. But the drone uses only 200-300 ml reducing the cost to
Rs 1,000-Rs 1,200 which helps the farmer save time and chemicals.

• Reach hazardous areas: drones make obtaining efficient data from hard-to-reach locations
a cakewalk for industry professionals. It is the most suitable alternative to overcome
limitations of traditional methods regarding worker's safety, especially in hazardous
situations. Drones also allow a more cost-effective approach toward inspections of these
locations.

Weakness:

• Lack of experience: As discussed earlier, if one necessitates seizing accurate, high-quality

data, they need to possess the demanded skillset. This specification would indicate that an
average farmer would require comprehensive training or third-party drone service provider
to capture, process, and analyze farming data. With expanding operators in the industry,
drone costs and its accompanying resource expenses will gradually reduce.

• Safety: Safety is a fundamental element to prioritize when operating drone technology.

UAVs outfitted with high-quality sensors recognize possible collisions and safely engineer
their way around them, making them a significant trait. These drone capacities must
resemble those of the manned aircraft navigators. It is commendable to hire professional
drone service providers who can operate an aerial drone without crashing it. Drones
operated in heavily-populated regions have an amplified risk of ground impact or damage,
mainly due to system malfunction or hacking.

• Data transfer speed can be slow: One of the cons in expanding drone technology in
precision agriculture is its data transmission speed, which some suppose could take time. If

17 | P a g e
 the time necessitated for data delivery results in a farmers' unproductivity and damage to
fertilizers, crops, or pesticides, the operation of the drone would be a waste in the end. Thus,
if data transfer speed is slow, suffering and damage can occur in that period, following all
efforts going to waste.

• Vulnerable to wild animals: Drones are susceptible to wild animal attacks and are
sometimes also dangerous to nature. It is possible that when a drone operator is flying in a
domain with a considerable number of wild animals, they crash against a tree or possibly
conflict with a vulnerable animal. Large flying birds like eagles are regularly attacking and
even capturing drones operating in their space to obtain crucial data.

• Not effective in extreme conditions: Drones are more vulnerable to weather conditions
when contrasted to traditional aircraft. For example, if the climatic conditions are
unfavorable, the UAV will not maneuver appropriately or gather reliable data or imagery.
However, there are drones available that are more stable and can withstand gusts of wind
successfully.

• Privacy: One of the most common concerns from the public about UAVs is privacy.
Drones can collect data and images without drawing attention. This can occur if
government entities were to use drones to monitor the public.

Opportunity:

• Unique sectors with low competition: Agriculture drones have proved to be immensely
successful in raising farm yields around the globe. Given the lucrative opportunities, there
are not many competitors in the market. We are focusing and capitalizing towards
exploiting the wide opportunities for innovation to diversify our portfolios and entrench
our position in the market in the process.

• Luxury markets with more spending power: Escalating investments by venture firms
are likely to drive the market in the coming years as this business has not many competitors
and will encourage the luxury market to purchase and control the supply of the drones.

18 | P a g e
• Large projects: Drones have made it easier for farmers to understand their crops and
irrigation techniques, thus potentially increasing their demand in the farming community.
Through this technology, farmers can implement smart integration systems and pesticide
management. For instance, global climate change and growing food insecurity are
challenges that the drones can directly contribute towards by improving crop health and
yield leading to large demand for our product.

• Improving drone technology: A drone’s capability to allow operators to inspect

previously inaccessible areas, reduce safety hazards and costs, and acquire precise data for
a wide variety of applications is reason enough to look out for an increase of drone job
openings in the near future. With the popularity of drones being used on job sites growing,
the future of drone technology is just taking off. Favorable regulatory policies by the
Government are also expected to help big as well as small organizations leave a mark in
the industry.

• Potential investors: The global agriculture drone market size is projected to reach USD
3,697.4 million by 2027, exhibiting a CAGR of 18.14% during the forecast period. Proving
that there are going to be potential investors ready to invest.

• Global expansion: Drones are poised to transform agriculture in a big way, bring about
further increases in efficiency and crop yield for farmers. Airplanes, helicopters, satellites,
and tractors can have their work supplemented/replaced by the use of drones in Agriculture.
The acquisition cost of drones, ease of use, low maintenance cost, and technology is above
and beyond that of traditional technologies, giving drones a bright future in agriculture in
all parts of the world.

Threats:

• Unclear adoption of agricultural drones: It is unclear how farmers will adopt tech
startups’ products in mid-term. farmers would hardly invest their resources to innovations
(say provide Agricultural Tech startups a revenue) due to significantly declined income.
Farmers with low incentives and falling income will not risk their appetite. Summing up,
there are some unfavorable macro trends for drones in agriculture.

19 | P a g e
• Competition: Regionally, North America acquired the dominant share in the Global
Agriculture Drones Market owing to the early adoption of drones in farming and presence
of major players in the region. In Asia Pacific, India, China, Japan and Australia are
expected to drive the agriculture drone market due to high investment in R&D and
increasing initiatives to deploy drones. Some of the leading players in the Global
Agriculture Drones Market are SZ DJI Technology Co., Ltd, Ursula Agriculture Limited,
Agribotix LLC, Eagle Uav Services, Parrot SA

Changes in law: Since the widespread use of unmanned aerial vehicles are relatively new,
legislation is still catching up. The Civil Aviation Authority (CAA) has established certain rules
for small, unmanned aircraft that apply to commercial and recreational use, but there are still
ambiguities. Questions include how best to determine airspace property rights and protect
landowners from aerial trespassing. Further adding to the confusion are conflicts between
federal regulations and some state and local laws.

20 | P a g e
Pestle analysis:

Introduction:

A PESTLE analysis is a tool used to gain a macro picture of an industry environment. PESTLE
stands for Political, Economic, Social, Technological, Legal and Environmental factors. It
allows a company to form an impression of the factors that might impact a new business or
industry.

PESTLE ANALYSIS OF OUR COMPANY:

Political and legal environment:

The political and legal environment is one of the most important aspects in Indian drone
industry, that could either ban or allow these unmanned aerial vehicles (UAVs) or drones to fly
all over the country. The Indian drone industry is under control Ministry of Civil Aviation,
which is an agency of the India's Department of Transportation. A Unique Identification
Number (UIN) is required for all drones except drones in the Nano category. Unmanned Aerial
Vehicles (UAV), commonly known as Drones, in India.

Economic environment:
Nowadays, every industry has a very tense and competitive situation, while many companies
are trying to be more competitive as well. Service and quality seem to be very important aspects
for the competition; hence, many firms are trying to potentially increase their competitive
advantages by adopting technologies to maximize their customers’ satisfaction. Furthermore,

21 | P a g e
retail and e-commerce industry will be majorities who acquire the benefit of using those drones
in their activities relating logistics and shipping. There are now several companies involved
with the use of drones in their logistics and shipping activities such as Amazon, DHL, and
Google.

Socio-cultural environment:
The drone industry seems to have fewer social forces because most of the drone adoptions are
in business to business industry. However, the safety issue of Indian citizens is one of the top
priorities to the Indian society. The commercial drones will definitely be used across the public
areas, which will increase the chance of accident. Therefore, there are still a lot of criticism
among public and government about the issues. As a result, research and development in this
area still leaves a gap for the firms to solve. On the other hand, the ethical issue has also been
questioning, whether privacy of people would be interrupted or not.

Technology environment:
The availability of technological resources and infrastructure has introduced to this radical
innovation of drone, which will lead to a new way of many activities, including military and
commercial purpose. Although drones are not regularly allowed to fly across India, there are a
lot of feasibilities to incrementally develop the drones for other purposes. This technology is in
the beginning development stage, but it has already shown some of its potential functions in
military purpose, such as spying on foreign territories.

Environment Determinant:
The only force on this environmental determinant is that the India local weather and climate.
India has a wide range of climate across the different parts of the country. The climate can be
constructed from shower rain to heavy snow storm, which would definitely limit the use of
drones. However, drones are still a very beginning stage of development, which there are still
many feasibility studies about this aspect of development.

Company’s ownership:

22 | P a g e
Fulture is a private business that is financed by three partners in an equal profit/loss sharing

23 | P a g e
partnerships. We do not intend to welcome any external business partner.

The partners behind Fulture are:

 Mufaddal Aziz Attaria

 Aryan Sethi
 Navneet

Supervision team:

• Mufaddal

Production and R & D manager

• Aryan

Finance and human resource manager

• Navneet

Sales & marketing manager

Investors Consideration:
Our investors will be provided with a detailed financial outlook of Fulture’s operations, its
return on investment and materials and fixed costs.

As a soon becoming part of the drone industry, Fulture will proudly present agricultural drones
of which its investors will have the pleasure to have built along with passionate and enterprising
businessmen.

Legal structure:

• Fulture company is a result of a partnership between three people working in the business
seeking a profit.

24 | P a g e
• A partnership agreement is also included and it stipulates the terms of the partnership by
formalizing rules for profit/loss sharing, ownership percentages, dissolution terms, and
management rights among many other things.
• Our Partnership agreements establish the terms of the partnership and typically cover topics
such Capita, Contributions, Distributions of profits/losses, Management Responsibilities,
Bookkeeping, Banking, Dissolution, etc.
• Taxation: A partnership is a tax-reporting entity, not a tax paying entity. Our company filed
an annual information return with the Income tax of India to report income and losses from
operations, but it does not pay federal income tax. Profits and Losses are passed through to the
owners based on their profit-sharing percentages outlined in the Partnership Agreement. Each
partner pays taxes on their share of the profit/loss.
• Liability: Owners typically have unlimited personal liability. Each partner is jointly liable for
the partnership’s obligations.

CHAPTER 2- OPERATIONAL ASPECTS

INCLUDING SUPPLY CHAIN AND HUMAN
RESOURCE

Operations and processes:

25 | P a g e
Operating plan:
We will have our storage pace / go down located at the outskirts of Chennai, which would
ensure smoother way to get the goods and no time restrictions been involved.

Hours of operations:

• For Corporate Office that will provide service its 10 AM – 6 PM

• For manufacturing Plant, it will be 10 hours from 9 AM – 7 PM

The packaging and labelling of the product would happen from our end at our storage point.

There would be specialized equipment to check the quality of each and every product been
received by us for sales. This ensures that the quality is guaranteed.

PLANT LAYOUT AND INTERIOR:

26 | P a g e
Organization Structure:

As per what type of organization, we are forming a partnership type of business organization
in which all 3 are equal partners in terms of ownership and with equal share in the profits as
well as the liabilities incurred in the firm in the course of business activities conducted.

• Organization’s structure:

27 | P a g e
1. Top level management (3 members)
The persons taking this position in the management hierarchy are Mufaddal, Aryan and
Navneet.

2. Middle level management (consisting of 4 managers)

There will be 5 managers on the basis of their managerial function and their respective
department:
• Production manager
• Sales and marketing manager
• Finance manager
• Human resource manager
• Research and development manager

3. Operational level management (20 employees)

• We will be employing 5 engineers and 15 semi-skilled workers.
• Each engineer will guide a team of 3 semi-skilled workers as well as supervise their work.

Skills required:

• Engineers require technical skills as well as soft skills like effective communication
• They should also possess knowledge regarding, drone market, drone services, and how to
construct a drone.

Laws and Licenses:

The Indian agency responsible for drone safety, DGCA, has provided a number of
internetaccessible details on flying for fun or for work.

Are drones allowed in India?

According to Directorate General of Civil Aviation (DGCA), drone use is allowed in India,
subject to DGCA regulations. The government of India is planning to replace the organization
with Civil Aviation Authority (CAA).

Drone Registration in India:

28 | P a g e
1. No person shall operate an unmanned aircraft system without first registering it on the
digital sky platform and obtaining a unique identification number unless exempted from
the requirement of a unique identification number under these rules.
2. A registration record shall be maintained by the Director General of all such unmanned
aircraft systems to which unique identification number has been issued under these rules.
3. It shall be the responsibility of the person operating an unmanned aircraft system to ensure
that such unmanned aircraft system conforms to a valid type certificate.

Insurance Requirements:
The provisions of the Motor Vehicles Act, 1988 (59 of 1988) and rules made thereunder shall
apply, mutatis mutandis, to the third-party insurance of unmanned aircraft system and
compensation in case of damage to life or property caused by such an unmanned aircraft
system:
Provided that a Nano unmanned aircraft system may operate without third-party insurance

A person operating an unmanned aircraft system may use an insurance product specially
designed for such operations, as and when such insurance product is approved by the Insurance
Regulatory and Development Authority of India.

29 | P a g e
 CHAPTER 3 - Marketing aspects
a. Market analysis:
The emergence of smart agriculture technologies in precision agriculture is projected to
fuel demand for agriculture drones in the upcoming years. Unmanned aerial vehicles
(UAVs) are playing an important role in carrying farming operations in advanced farming
management and site-specific crop management (SSCM) owing to the excellent capability
of these drones in aiding the maximizatio n of crop production. They are widely used by
farmers in key applications such as soil assessment, crop management, irrigation &
drainage, fertility, crop protection, fertilizer & pesticide spraying, and harvest planning.

The agriculture drone market is expected to grow from USD 1.2 billion in 2020 to USD 5.7
billion by 2025 at a CAGR of 35.9% from 2020 to 2025. One of the key factors driving the
growth of this market is the increase in venture funding for the development of agriculture
drones.

30 | P a g e
1. Scope of drone market:

We will serve medium to large sized producers of the agrarian community and the geographical
areas we focus on will be South-east Asia, India, and European regions.

Farmers Producers Organization (FPOs), for instance, can receive a grant of up to 75% of the
cost of an agriculture drone. drones will be used for crop assessment, digitization of land
records and spraying of insecticides and nutrients. The government is offering a helping hand
– one, with a small budget to experiment with drones and, two, by dumping some restrictions
to ensure the ease of flying them.

It is expected that the use of drones will grow significantly in farming as they offer a wide range
of applications to improve precision agriculture

2. Need for our product & services:

31 | P a g e
Drones can help farmers to optimize the use of inputs (seed, fertilizers, water), to react more
quickly to threats (weeds, pests, fungi), to save time crop scouting (validate treatment/actions
taken), to improve variable-rate prescriptions in real time and estimate yield from a field.

Raw data collected by drones gets translated into useful and comprehensible information for
farmers thanks to specific algorithms. Some of the information these images provide is:
• Plant counting: plant size, plot statistics, stand number, compromised plots, planter skips)
• Plant height: crop height and density.
• Vegetation indices: leaf area, anomaly detection, treatment efficacy, infestations,
phenology
• Water needs: damage/drown out Drones ensure a permanent monitoring of the crop in the
field from planting to harvest.

3. Value and Volume of our sales with existing competitors:

Fulture’s positioning will be affordability and quality aimed at a small but diverse clientele who
will create awareness by our goodwill. We will take a product-centered approach to market
business to business. Since the drone market is rapidly innovating and costs are high.

As mentioned, when there is a need for a product, we make sure the customer gets the best in
terms of quality and long-lasting life of our product when compared to the existing products in
the market.

4. Overcoming barriers
Our employees will be well taken care of, and their welfare package will be among the best
within our category in the industry meaning that they will be more than willing to build the
business with us and help deliver our set goals and achieve all our aims and objectives.

Target consumer group:

32 | P a g e
The target market for those who need the services and products of our company are all
encompassing. It is a fact that basic machinery can’t be as effective as drones and can provide
maximum output when carried out with the use of our drones.
In view of that, we will position our agricultural drone company to service the farmers, farming
businesses, government agencies and corporate organizations of metropolitan cities across
India. We will conduct our market research and we will have ideas of what our target market
will be expecting from us.

We are in the agricultural drone business to services clients such as;

• Commercial farmers
• Semi-commercial systems
• Medium farmers (farmers who have 4-10 hectare of land)
• Large farmers (farmers who have 10 hectare and above land are called large farmers)

• Industry associations and experts

• Dealers/Distributors
• Research institutes & organizations

Marketing mix strategies with respect to 4Ps:

33 | P a g e
Products We Offer:
We offer an authorized Fulture drone named VULTURE that can apply pesticide faster and can
help farmers to optimize the use of inputs, to react more quickly to threats (weeds, pests, fungi),
to save time crop scouting (validate treatment/actions taken), to improve variable-rate
prescriptions in real time and estimate yield from a field.

Product Name – Vulture Apex19

Highlights:

• Our Vulture penetrates thick canopies with slanting spraying, ensuring efficient &
uniform spraying of liquid pesticides and increasing the number of droplets by 100%
resulting in less wastage. With the help of the Smart Agriculture Cloud Platform and
cloud-based mapping, users can manage a 3D digital image on their smartphone,
making it easy to get started with digital agriculture.

• With efficient hardware, an Artificial intelligence engine, and 3D-operation planning,

makes the Vulture cost effective.

• Our solutions provide digital, informative, intelligent, and precise field management for
grain crops such as rice, wheat, and corn. This empowers agricultural operators with
more convenient and efficient options, reduces operation costs, improves crop quality,
and increases yield rate.

• We also provide digital, informative, intelligent, and precise management solutions for
commercial crops such as cotton, citrus trees, apple trees, and tea plants. As with grain
34 | P a g e
 crops, operators will find these options more convenient, inexpensive, and beneficial to
crop quality and yield rate.

Features of Vulture:

• Vulture has 6 Rotors and is resistant against magnetic interference due to the dual-
redundancy system.

• Vulture has a payload of a 17.5 Liters and a spray rate of 5.2 liters/ minute with four
sprinkler technology.

• Vulture has a spray width of 6.5 meters which has an operation efficiency of covering
10 hectares per hour

• Vulture has a multi aircraft model mode which can help a farmer control five drones
with one controller.

• Vulture has a high-definition transmission system which has a view range of up to 3

kilometers to ensure flight safety.

• Vulture is a foldable drone and is convenient for storage & transportation.

Main parts required to make the drone:

• Frame - The main frame of the drone actually manufactured in our warehouse and it is
made of steel and it being molded from pure steel coupled with a carbon fiber coating
in a blasting furnace and constantly observed by team of Mechanical Engineers. The
weight of each frame is tactically chosen for the proper CG balancing. Tested by our
experts.

• Motors - We will make the motors of our drone and it will be designed by our team of
experts comprising of mainly Electronics and Electrical Engineers. Each motor consists
of Brass winding inside that increases the efficiency of the motors. Each drone needs 4
motors in total and it can be handmade as the drone motors are small size equipment’s.

• ESCs or Electronic Speed Control - This is a small chip and each motor of the drone
is connected to it and it controls the speed of each motor and it being given signal for
the speeds through the remote control. This product is manufactured inhouse and its
handmade and produced by Electrical and Software engineers.

• Propellers - Produced inhouse in the automatic machines which gives the shape them.
Each drone needs minimum 4 propellers.

• Connectors - You will need 3.5 mm connectors to weld the motors and ESCs, as well
as 4.5 mm connectors for the power distribution board. Process is done in 2 nd second
stage of the assembly line by welding all the parts together.

35 | P a g e
 • Power distribution board - This board connects the ESCs to the battery. It consists of
bunch of semiconductors and fitted in a ceramic board that is light weight and it is being
dye inhouse.

• Batteries - We will outsource the batteries from local markets and these batteries are
lithium-ion batteries of 20 volts and power. These batteries are easy to charge also takes
20% less time to charge than normal lithium-ion batteries.

• Mounting Pad - This is small holding device for your camera to be mounted in the
Drone and it is being manufactured inhouse

• RC Receiver - Of course that, if you have a transmitter (which is usually with you),
you’ll also have a receiver mounted on the drone.

• Camera - All lenses and Camera will be outsourced from local markets.

• USB Key - Outsourced from Local Markets.

• Software Chip for connectivity through Bluetooth and other wireless devices

Assembly Process Step-by-Step: -

• Step 1: Making the frame - No matter what your drone is going to be, it must have a
frame. So, the first task is to make a frame.

• Step 2: Propellers, Electronic speed controllers, & Motors – This is when all these
things either produced or outsourced will come together and get fitted in the Frame.

• Step 3 - Assemble the motors

• Step 4: Mount the Electronic speed controllers

• Step 5: Add the Landing Gear

36 | P a g e
 • Step 6: F light Controller - Every flying drone must have a control system. This
electronic system allows a drone to be stable in the air while flying and processes all
the shifts and changes in direction and wind. There are two options when it comes to
this step.

• Step 7: Choosing a right RC TX-RX (Wireless Remote-Control System)

• Step 8: Mount the Flight Controller - Once you choose the particular flight controller,
you need to mount it. For instance, you can place it on the top of the frame in a certain
direction, but you need to make sure that all the components are fixed well before
calibrating your drone. For this purpose, you can also use the aforementioned zip ties

• Step 9: C onnect the open pilot to your drone - The next thing you have to do is to

• Step 10: TESTING THE DRONE WORKING CONDITION

Services we offer:

Drone repair:

Our Fulture Drones certified repair Engineers

are here to fix your Vulture sprayer drones.
The engineers have been trained to provide
quality service that represents Fulture brand.
Here is the simple method to request repair:

1- Contact our customer service

2- Tell us about the issue

3- Send your drone to us to get it fixed

37 | P a g e
configure and connect the flight controller to the electronic speed controllers.

38 | P a g e
Pilot Assistance:

• We offer FREE face-to-face training to our customers.

• If you buy a Fulture drone, you can either visit us or request for an expert pilot to teach
you all about drones. our dust and how to use them.

• Customers can Contact us and get a training lesson if they own a Fulture agricultural
drone.

Pricing:
Pricing is one of the key factors that gives leverage to Fulture drones business, it is normal for
consumers to go to places where they can get good deals or hire the services of a company that
can give them good bargain for their money. We are aware of this trend which is why we will
have to put structures in place that will enable us charge fees that are a little below the industry’s
average.
We will ensure that we reduce our overhead, and we are ready to run on low profit margin for
the first six months of launching the business just for the purpose of attracting loyal clients and
build our clientele base.

Place:
The key criteria for choosing any locations of my business model is to be based on logistics
and geographical statements. Also, there shouldn’t be any political disorders in those locations.

39 | P a g e
As our company’s product is innovative in nature for the current Indian market it is very
essential to consider competition factor for a location and awareness regarding that. The
security for any thought processes in our plants needs to be tight, there shouldn’t be any loss
of information for that we need a location that is distant from other manufacturing farms. We
can consider any locations based on the “Make in India” campaigns of our present government
that will help us to get benefits regarding incentives, land costs cut-off, subsidies for new
innovative business growing.

Nowadays, there is a great deal of awareness towards the maintenance of natural ecological
balance. Regarding the effect of pollution from the specific type of plants, social obligations
are to be met. The nature of the site selected should preferably have some advantages to meet
these requirements. You must be careful about effluent disposal, in the cases it needed. Utilities
like electricity, water resources etc. play an important role in almost every factory operation.

A stable and uninterrupted power is a required magnitude, without fluctuations in voltage and
frequency is important for the successful operation of the plant. Local availability of skilled
and semi-skilled manpower will add to the efficient running of the plant. Besides, you must
study labor relations through turnover rates, absenteeism, and liveliness of trade unionism in
the particular area.

Keeping everything in check, we have to decide the location of our facility in OMR and practice
zero level marketing channel to avoid rise of price.

Hours of Operation:
• For Corporate Office that will provide service its 10 AM – 6 PM
• For manufacturing Plant, it will be 10 hours from 9 AM – 7 PM

Promotion:
Advertising and Promotion:
• Introduce our business by sending introductory letters alongside our brochure to
corporate organizations, businesses in the agriculture sector, research organizations and
key stake holders in metro cities of India.

40 | P a g e
 • Print handbills about our Agricultural drone business and its locations and drop them
in public facilities.
• Advertise on the internet on blogs and forums, and also on social media like Twitter,
Facebook, LinkedIn to get our message across, so that those on the social media or those
who read blogs can approach us when they need the services of our company.
• Creating a basic website for our business, to give it an online presence in the future.
• Directly market our agricultural drone business.
• Join local drone associations for industry trends and tips
• Provide discount days for our customers
• Advertise our business in community-based newspapers, local TV and radio stations
• List our business on yellow pages ads (local directories)
• Encourage the use of word of mouth marketing (referrals)

Here are the platforms we intend leveraging on to promote and advertise

Wide – Spread Pictures of FULTURE DRONES COMPANY;
• Place adverts on both print (community-based newspapers and magazines) and
electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, twitter,
et al to promote our brand
• Install our Bill Boards on strategic locations all around common public hotspots of
metro cities of India
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where our photo booths
are located.
• Ensure that all our workers wear our branded shirts and all our aerial drones, vehicles
are well branded with our company’s logo etc. and all.

CHAPTER 4 – FINANCIAL ASPECTS

Every company’s success is determined by its sound financial strategy. The advantage of this
business model that it requires very little start-up capital to set it up as most of its operations
are done online.

41 | P a g e
The only expenses which the company will bear is the procurement of materials for assembling
of the products initially and once the company shifts to the drop shipping model this cost will
be mostly eliminated.

THE FOLLOWING TABLE DETAILS THE PRICING FOR DELIVERY OF

THE SERVICES OUTLINED IN THIS PROPOSAL

Primary costs Price in Rs.

Direct expenses (cost of drone components + salary, other costs) 2,75,000.00

42 | P a g e
Indirect expenses 50,000.00

Profit margin 75,000.00

4,00,000.00
Total price of the product Category #1

Break up of manpower cost

No. of engineers 3

Salary per engineer 20,000.00

Total salary for engineers 60,000.00

10
No. of Semi-skilled workers

43 | P a g e
 PROFIT AND LOSS STATEMENT (RS)

PROFIT AND LOSS STATEMENT

PARTICULARS YEAR I YEAR II YEAR III

INCOME (A)

Sale of Drone 2,40,00,000

3,36,00,00 4,27,50,00
0 0
Sales Return 8,00,000 5 6
,00,000 ,50,000

Net Sales 2,32,00,000

3,31,00,00 4,21,00,00
0 0

EXPENDITURE (B)

I Direct Expenses

Purchases 1,65,00,000
2,30,00,00 2,95,00,00
0 0
Freight cost 3,60,000 4 5
,35,000 ,00,000
Traning cost 25,000
30,000 33,000
Direct Expenses 1,68,85,000
2,34,65,00 3,00,33,00
0 0
Gross Profit 63,15,000
96,35,000 1,20,67,00
0
II INDIRECT EXPENSES

Rent 6,00,000
7,00,000 7,60,000
Fuel and Elecrticity 2,40,000
2,80,000 3,10,000
 Repairs and maintanence 3,60,000 4
4,00,000 ,15,000
Salaries 7,20,000 8
7,60,000 ,00,000
Rate and Taxes 50,000
60,000 75,000
Sales Promotion and Advertisement 24,00,000
28,00,000 31,00,000
Other Office Expenses 2,40,000
2,95,000 3,25,000
Depreciation 1,05,000
89,250 75,863
Net Profit before Tax 16,00,000
42,50,750 62,06,137
Less:

Provision Tax @ 30% 4,80,000

12,75,225 18,61,841

Profit After Tax 11,20,000

29,75,525 43,44,296

43 | P a g e

ASSETS AND LIABILITIES

PARTICULARS YEAR I YEAR II YEAR III

45 | P a g e
LIABILITIES

I CAPITAL ACCOUNT:

Capital Introduced/ Opening balance b/d

25,00,000 29,71,590 48,95,995
Add: Net Profit
11,20,000 29,75,525 43,44,296
Less: Drawings
6,48,410 29,71,590 10,51,120 48,95,995 17,00,000 75,40,291

II CURRENT LIABILITY:

Sundry Creditors
27,50,000 40,50,000 33,25,000

TOTAL LIABILITIES
57,21,590 89,45,995 1,08,65,291

ASSETS

I FIXED ASSETS:

Furniture and Fixtures

1,70,000 1,44,550 1,22,825
Computers
4,25,000 5,95,000 3,61,250 5,05,800 3,07,063 4,29,888

II ADVANCE AND DEPOSITS:

6,00,000 6,00,000 6,00,000

III INVESTMENTS:
10,00,000 12,00,000 16,25,000

IV CURRENT ASSETS:

Sundry Debtors
20,00,000 16,00,000 14,25,000
Cash and Cash Equivalents
15,26,950 35,26,950 50,40,195 66,40,195 67,85,403 82,10,403

TOTAL ASSETS:
57,21,950 89,45,995 1,08,65,291

46 | P a g e
BALANCE SHEET(RS)

47 | P a g e
CHAPTER 5 - SUMMARY:

48 | P a g e
Fulture is an exclusive agricultural drone manufacturing company. It is one of the first companies

49 | P a g e
 to manufacture agricultural drones in India. Our drones will penetrate vast areas of our company
and will start to become a necessity and become a major part of the daily lives of farmers in the
21st century. My company will be Civil Aviation authority (CAA)approved aeronautical
training program certified company.

We consider drones to be the future of agriculture for every use. Our agricultural drone
manufacturing company will be registered and licensed business enterprise in the agricultural
industry that will specialize in agriculture drone business. Although our business will be based
in Chennai, Tamil Nadu where we were intend setting up our corporate office, but we intend
working for clients both in Indian market and international markets as well.

We plan on setting up our company in Tamil Nadu.

CHAPTER 6 – ANNEXURE:

1. How high can an agricultural drone fly?

Drones fly around 50 - 100m high. Above 50m high, a special authorization is

50 | P a g e
Required.

51 | P a g e
2. Is any special license required to fly agricultural drones?
Currently, flying agricultural drones depends on national laws. Nonetheless, training is normally
required.

3. What are the best weather conditions to fly a drone over a field?
A drone can fly under any weather condition. Drones are water resistant, but image quality can be
damaged if pictures are taken during rainy weather.

4. What makes the difference between images taken by a drone and satellite images? Drones can take
pictures with a resolution down to a few cm per pixel. A drone can get higher quality and higher
precision of images in real time as they can fly below the clouds. Besides, a satellite only takes
pictures once a week or once a month.

5. What kind of information can farmers get from the images?

Raw data collected by drones gets translated into useful and comprehensible information for farmers
thanks to specific algorithms. Some of the information these images provide is:
•Plant counting: plant size, plot statistics, stand number, compromised plots, planter skips),
•Plant height: crop height and density
•Vegetation indices: leaf area, anomaly detection, treatment efficacy, infestations, phenology
• Water needs: damage/drown out
Drones ensure a permanent monitoring of the crop in the field from planting to harvest.

6. What are the main benefits farmers can get from the use of agricultural drones?
Drones can help farmers to optimize the use of inputs (seed, fertilizers, water), to react more quickly
to threats
(weeds, pests, fungi), to save time crop scouting (validate treatment/actions taken), to improve
variable-rate
Prescriptions in real time and estimate yield from a field.

52 | P a g e
53 | P a g e
7. What are the advantages of combining smart agricultural machinery and agricultural drones?
As of today, drones cannot communicate directly with agricultural equipment. Drones fly over the
field and take
High resolution pictures. The data gathered is directly sent to the cloud/software and made available
to the
Customer. Thanks to this data, the user can select the information wanted from the images and make
different
Prescription maps depending on the operation the farmer wants to perform on the field. The maps
can then be uploaded on the farm equipment which will adjust the amount of inputs (seeds,
fertilizers, pesticides) that would
Need to be applied in the field accordingly.

8. What are the expectations for this market to grow in the coming years?
It is expected that the use of drones will grow significantly in farming as they offer a wide
range of applications to improve precision agriculture.

54 | P a g e
CHAPTER 7 – BIBLIOGRAPHY

55 | P a g e
Agricultural drones’ insights:
https://www.cemaagri.org/images/publications/brochures/Flyer_QA_drones_FFA_2016_FINAL.pdf

Agricultural drones overview: cema-agri.org

Guide to start a drone business: https://www.droneii.com/wpcontent/uploads/2019/10/Drone-Business-

Development-Guide.pdf

Laws and licenses structure for drones: Uavcoach.com

Swat and pestle analysis introduction: wikipedia.com

Designing drones: electronicsforu.com

Drone market analysis: alliedmarketresearch.com

Competitors in the drone industry: marketresearchuniverse.com

56 | P a g e