The client, a Sovereign Wealth Fund, wanted the TresVista team to set up a holding company for carrying out controlled environment agriculture to attain food security in the country. The client wanted a financial model which would help analyze the different combinations in which crops can be allocated to a variety of greenhouses on the land.
To plan the operations of a holding company carrying out controlled environment agriculture.
The TresVista team followed the following process:
Built Assumptions: Built assumptions with respect to different crops, costs associated with the same, duration of the crop cycle, and revenue generated per unit area
Designed Allocation Schedule: Designed an allocation schedule that helps in informing the user about crop-wise greenhouse compatibility which spans over a certain period
Analyzed Profitability: Created crop tabs to analyze the profitability and viability of the business on a crop-wise level to draw comparisons and reach an optimized business structure
Payment Schedule: Built a payment schedule to analyze the real-time cash outflows which occurred as payments to the contractor and were compared to the modeled in-house expenses
The major hurdles faced by the TresVista team were building a structure to ensure automated allocation with proper intimations in case of exceeded limits, providing an option to switch between different methods of business operations, and building assumptions for crops with inconsistent monthly cycles. The team had to change an existing model which presented yearly information and build a new one with a different method of aggregation monthly.
The TresVista team overcame these hurdles by understanding the motivations behind setting up a welfare-focused business, the limitations associated with the same, and breaking down the different variables that come into play in carrying out a traditional business.
The TresVista team built a model for attaining optimum area allocation and analyzed the quantum of benefit that outsourcing provided. The team broke down the different variables that come into play in carrying out a traditional business, thereafter, understanding the approach of a welfare-focused business owner with financial resources.