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OverviewAgrawal Wood Tree   High DemandDepleted SupplyProject DetailsProject Returns  Risks and Safeguards

Project Returns

Rajnish Estates will be planting 50 Sandalwood Trees, 50 Agarwood Trees and 20 Rosewood Trees in an 8000 Sq ft plots. The Agarwood plantation will be harvested in 10 Years, Sandalwood plantation in 15 Years and Rosewood plantation will be harvested in 20  years.

The buyers can expect a return of Rs. 4.8 crores starting from 10 Years. In case they earmark 1200 Sq.ft for their villa plot they can expect a return of Rs. 4.5 crores.

The current price of Sandalwood is averaged at  Rs. 10,000 per Kg and the average weight of the tree is 30 Kilograms.

There are approx. 50 Sandalwood Trees planted in an 8000 Sq.ft Plot.

A plantation planted 15 Years ago would be worth approximately Rs. 1.25 Crores if harvested today.

The price of sandalwood has risen 10 times in the last 10 years. We assume that the price of sandalwood will increase minimum 5 times in 15 Years.

The sandalwood trees will be cut after 15 years which means that the value of the plantation after 15 years would amount to Rs. 6.21 Crores

As the revenue will be split equally between the Buyer and Rajnish Estates, the Buyer can expect to earn Rs. 3.21 Crores and Rs. 3 Crores with the Villa Plot as shown in the Investment Return Matrix

Similarly the Buyer can expect to earn Rs. 1 Crores from the Agarwood Plantation and Rs. 82 Lac with the Villa Plot as shown in the Investment Return Matrix.

Similarly the Buyer can expect to earn Rs. 75 Lacs from the Rosewood Plantation and Rs. 71 Lac with the Villa Plot as shown in the Investment Return Matrix.

Investment Return Matrix

 Sandalwood Agarwood Rosewood

Total

Investment Amount to purchase 8000 Sft. plot

Starting Rs. 15 Lakhs

 
Current Price of the Tree

2.5 Lakh

1 Lakh 2 Lakh  
Number of Trees planted

50

50 20

120

Harvest Time

15 Years

10 Years

20 Years

 
Current Plantation Value (Rs.)

1.25 Crores

50 Lacs

30 Lacs

 
Assumed Price increase upon Harvesting

5 Times the Current Price

4 Times the Current Price

5 Times the Current Price

 
Expected Price upon Harvesting

6.25 Crores

2 Crores 1.5 Crores

10.7 Crores

Buyer’s Share (Rs.)

3.1 Crores

1 Crore 75 Lacs

4.8 Crores

Buyers Share with Villa Plot of 1200 Sq. ft

3 Crores

82 Lacs 71 Lacs

4.5 Crores

 The revenue is directly proportional to the number of plots bought by the buyer.

Please Note:

  • The villa plots can be bought by any Indian citizen. For Non resident Indians, the plot can be converted into ‘Residential’ and can be duly purchased by them.
  • The buyers can advise the Villa plot size required by them and the plantation returns will vary accordingly.
  • The number of Agarwood and Sandalwood Tree mix can be mutually decided by buyer and Rajnish Estates e.g. the buyers can expect a higher return if they plant more Sandalwood Trees instead of Agarwood Trees but will have to wait for 15 years instead of 10 Years for the plantation returns.
  • We have to sell the Sandalwood Trees to the Govt. of India and take permission to harvest Rosewood Trees. There is no permission required for harvesting Agarwood Trees.
  • The buyer can sell the villa plot and plantation or both separately. In case the buyer wishes to sell the plantation, the new buyer also has to sign a similar lease agreement which the buyer has signed with Rajnish Estates.