An expansion plan of floral auction centre

The first floral auction centre in Banglore, which began functioning in 1995, has witnessed a steady rise in business. During 1997-98 it did business worth Rs.19.63 lakh which rose to Rs.78.60 lakh the next fiscal. In 1999-00, it clocked a turnover of Rs. 2.04 crore which is projected to rise to Rs.4.00 crore this fiscal. An expansion plan was thought of in 1998 involving a capital expenditure of around Rs.32 crore. The plan had among other things investments to be made in the purchase of refrigerated vans used for transporting flowers.

The project would involve expanding the existing auction facility by adding a receiving station, cold store and other services. The project also involved developing a net-based auction system and thus integrating both the physical and the virtual trading markets.

Currently, the Floriculture Industry in India has gone through a bad patch, which owes banks and financial institutions collectively over Rs.100 crore. The industry has had to pull out all tricks from the bag for its survival. The idea of net based trading was therefore a need to survive the competition and do well.

As of date the issue is very tenuously placed and one hopes that Bangalore would have a modern auction centre at the earliest. After all two new projects namely one (barely 40 kms from the existing auction centre and located in Karnataka) are also planning an auction centre. If one of these two do materialise, KAIC’s "first auction" centre advantage would be lost.

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(Floriculture)