What is a managed sandalwood plantation?
A managed sandalwood plantation is a professionally supervised agricultural operation where sandalwood trees are cultivated, monitored, and harvested under optimal conditions. These plantations employ advanced farming techniques, regular monitoring, and expert management to ensure the growth of high-quality sandalwood.
Why should I invest in a managed sandalwood plantation?
Investing in a managed sandalwood plantation offers long-term returns due to the high value of sandalwood. Managed plantations reduce risks by ensuring proper cultivation practices, consistent tree health monitoring, and secure harvesting processes, which maximize the yield and quality of the heartwood.
How long does it take for sandalwood trees to mature?
Sandalwood trees typically take 15 years to reach maturity, at which point they produce high-quality heartwood. The timeline may vary depending on environmental conditions and the specific care practices employed.
What kind of care do sandalwood trees require?
Sandalwood trees require specific care, including proper soil management, regular watering, pest control, pruning, and monitoring for diseases. Managed plantations ensure these practices are followed rigorously to promote healthy tree growth and optimal heartwood development.
What makes the heartwood of sandalwood trees valuable?
The heartwood of sandalwood trees is highly valued for its aromatic oil, which is used in perfumes, incense, and traditional medicines. The quality of the heartwood, determined by its oil content and aroma, significantly affects its market value.
How does the plantation ensure sustainability?
Managed sandalwood plantations employ sustainable practices such as responsible harvesting, replanting, and soil management to maintain ecological balance. These practices help ensure the long-term viability of the plantation and its surrounding environment.
Can I visit the plantation where my trees are grown?
Yes, Ameya plantations offer investors the opportunity to visit the site, observe the growth process, and learn more about the cultivation techniques used. This transparency helps build trust and allows you to witness the progress of your investment.
What risks are associated with sandalwood plantation investments?
While managed plantations mitigate many risks, some potential concerns include climate variability, pests, and market fluctuations. However, expert management, regular monitoring, and advanced farming techniques are employed to minimize these risks and protect your investment.
How does the plantation ensure a consistent water supply and operational continuity?
Ameya plantations has 4-acre water pond with a depth of 15 feet, replenished daily via borewells and water pipelines connected to a nearby canal. This ensures a reliable water supply, crucial for the health of the sandalwood trees. Additionally, the plantation has power backup through generators to maintain continuous operations.
Who manages the plantation, and what expertise supports it?
The plantation is managed by seasoned entrepreneurs with proven success in real estate and hospitality ventures. The sandalwood cultivation process is overseen by experts in wood sciences from the Institute of Wood Science and Technology (IWST), ensuring that the trees are grown under optimal conditions. Additionally, dedicated plant supervisors manage specific units to ensure proper water supply, plant health, and weed management.
What returns can investors expect from their investment ?
Each unit (0.25 acre) has 100 sandalwood trees, and each tree is capable of producing up to 50 kilograms of valuable heartwood. Currently, the market price for sandalwood heartwood ranges from INR 15,000 to 25,000 per kilogram, with forecasts indicating a potential doubling of prices over the next decade. This projection underscores the significant long-term return potential of this investment.
How do Investors participate in this opportunity?
Investors can purchase one or more units within the plantation. Each unit includes 100 sandalwood trees and covers 0.25 acres. You can choose the number of units that align with your investment goals. The land is registered to investor with full ownership, while Ameya manages the plantation.
What revenue can investor expect from their investment, and how is it shared?
Upon harvest, the revenue generated from the sale of heartwood is shared between the investor and Ameya Plantations. Investors receive 60% of the revenue, while Ameya retains 40% for managing and maintaining the plantation. This revenue-sharing model ensures that both parties benefit from the plantation’s success.
What is the unique value proposition (USP) of Ameya Plantations?
Ameya Plantations offers mature white sandalwood plantations where all trees are already about two (2) years old and have attained an average height ranging between approximately seven (7) to fifteen (15) feet. This significantly reduces early-stage plantation risk and ensures investors participate in an established growth phase rather than a nascent plantation stage.
What land extent is offered and how is ownership structured?
Each investment unit comprises approximately one-fourth (1/4) acre of agricultural land. The land is legally registered in the investor’s individual name through a duly executed and registered sale deed, providing clear, marketable, and transferable title. If the unit is a bigger size or small than 1/4th acre the unit will be charged proportionately.
Is the land easily accessible?
Yes. All plantation units are provided with clear and well-defined road access, ensuring uninterrupted physical access to the land at all times.
Is there an exit option in case of emergency?
While the investment is designed for a long-term horizon, Ameya Plantations provides a structured emergency exit option after a minimum lock-in period of three (3) years. In genuine emergency situations, the Company may assist the investor in facilitating an exit or resale, subject to prevailing terms, conditions, and administrative charges.
Does the Company have a financial stake aligned with investors?
Yes. Ameya Plantations retains a vested economic interest in the plantation produce, holding approximately forty percent (40%) share in the final harvested sandalwood output. This alignment ensures that the Company’s financial incentives are directly linked to the long-term health, maintenance, and value realization of the plantation.
Does the Company guarantee returns?
No. Ameya Plantations does not provide any assurance or guarantee of returns. All growth projections, yield estimates, and valuation illustrations are indicative in nature and subject to biological, climatic, regulatory, and market variables.
What legal documentation governs the investment?
The investment is governed through a combination of a registered sale deed for land ownership, a pattadar passbook, a definitive lease agreement and other supporting documents executed in compliance with applicable laws. Investors are encouraged to review all documents independently prior to execution.
Will Ameya provide all legal documents of the land for investor verification?
Yes, all the legal documents are available in website.
Are the unit sale and ownership for the buyer a freehold?
The land ownership is entirely freehold, allowing the owner full rights to sell their land to anyone without restrictions subject to continuance of definitive lease agreement signed with the company.
Can you still invest in agricultural land in Andhra pradesh even if you are not a resident of Andhra pradesh
Yes. According to the Andhra Pradesh Land Reforms any resident citizen of India to own agricultural land in Andhra Pradesh. However, there is a ceiling to the total agricultural land that can be held by an individual in their name which needs to be managed by investor themselves.
What are the tax benefits on investments in Agricultural farmlands?
Sale of rural agricultural land is not taxable provided the land used for cultivation qualifies as agricultural land. Also earned income from the sale of its crops in rural agricultural land is not taxable under section 10(1) of the Income Tax .