In an attempt to make hydroponic farming attractive to those interested in farming, Barton Breeze, a Gurugram-based agritech firm, has come up with an assured return plan with a bank guarantee.
“A prospective investor will be able to get an assured annual return of 30 percent on his capital expenditure. We would operate the farm for them and sell the produce for them. If there is a shortfall in this return, the deficit would be paid by banks with whom we have entered into an agreement,” said Shivendra Singh, Founder and CEO of the commercial hydroponic farming venture, which set up shop in India in 2017 after a successful run in West Asia.
Singh said the firm has already tied up with the State Bank of India and HDFC Bank for the bank guarantee scheme. Explaining the model further, Singh said not only progressive farmers, but HNIs and corporates would be able to reap benefits from this scheme.
“Hydroponics have several benefits for commercial farms. However, many customers are not completely aware of the environmental and financial contribution of it that makes them skeptical of investing in a hydroponic setup. Our approach of providing a bank guarantee to B2B customers ensures a risk-free transaction. With this strategic step, we look forward to strengthening our relationship with customers,” said Singh.
“This a bit similar to contract farming, except that in this case, we take care of everything, including running of the farm. Unlike in contract farming where the farmer is having the liability and responsibility of growing the crop, we ensure that the crop is grown properly by being present at the farm on a continuous basis,” Singh told BusinessLine.
Read more at The Hindu Business Line