Project Kaveri

Coorg Coffee Estate

Coffee plantation · Boutique hotel · Residential — a single land deal with three revenue streams in Kodagu, Karnataka.

Site visits pending — 10 properties shortlisted
Deal Parameters
Target Size 5–10 acres
Properties Shortlisted 10
Priority Property River Estate ★
Property Types Coffee, farmhouse, plain plantation
Trip Duration 2–3 days (TBD)
10-Acre Financial Snapshot
₹1.3–1.7 Cr
Net annual income (Year 3+, stabilized)
₹10–14 Cr
Total CapEx
10–15%
Cash-on-Cash ROI
Shortlisted Properties
10 Properties · Charan's Shortlist · Maps Pending
# Type Size Features River Map Notes
1 ★ Priority Coffee Estate River frontage pending Top pick — prioritized Apr 6
2 Coffee + Farmhouse Existing farmhouse structure pending
3 Plain Plantation Plain / open land pending
4 Coffee Estate pending
5 Coffee Estate pending
6 pending
7 pending
8 pending
9 pending
10 pending

📍 Google Maps pins requested from Charan — table will be updated as property details come in.

Three Revenue Streams
☕ Coffee Plantation
Allocation (10-acre) 7 acres
Best variety Robusta
Yield / acre 600–900 kg
Current price ₹380–420/kg
Normalized price ₹200–250/kg
Net profit / acre ₹1.7–3.1L
Revenue (7 acres, normalized) ₹90–140L/yr
🏨 Boutique Hotel
Allocation (10-acre) 2 acres
Model 10-room agritourism
ADR ₹8,000/night
Blended occupancy 58%
Gross revenue ₹2.1 Cr/yr
EBITDA ₹80L–1.0 Cr/yr
Construction CapEx ₹5–8 Cr
🏡 Residential Plots
Allocation (10-acre) 1 acre
Plots 5–6 villa plots
Sale value ₹60–100L (one-time)
Target buyers Bangalore second-home, NRI
Gross margin / acre 70–90% IRR
DC conversion 3–6 months
ESA risk Medium (not finalized)
Capital Breakdown — 10-Acre Scenario
Item Cost Range
Land acquisition (10 acres, established estate)₹2.5–4.5 Cr
Stamp duty + registration (6–7%)₹18–31L
Legal + due diligence₹2–5L
DC conversion (2–3 acres)₹5–15L
Hotel construction (10 rooms)₹5–8 Cr
Coffee processing unit (wet mill)₹10–20L
Farm improvements, irrigation₹10–20L
Working capital (Year 1)₹20–30L
Total₹8.5–14 Cr
Risk Matrix
🔴 High

ESA Notification Risk

Central govt could finalize Kasturirangan ESA, restricting construction. Karnataka has rejected it 6 times. Mitigate: buy outside core ESA zones, keep majority as agricultural land.

🔴 High

Monsoon Crop Risk

Coorg gets 4,500–6,000mm rainfall. Leaf rust can wipe 20–30% of crop. Mitigate: Coffee Board insurance + pepper/cardamom intercropping.

🔴 High

Title & Land Record Issues

Complex ancestral holdings, unclear mutation history. Mitigate: 7-generation title search, Madikeri-based property lawyer (not Bangalore).

🟡 Medium

Labour Availability

100–200 seasonal workers needed per 10 acres during Nov–Jan picking. Structural shortage in Coorg. Mitigate: above-market pay, build labour housing.

🟡 Medium

Coffee Price Normalization

Current 30-year highs. When prices normalize to ₹200–250/kg, revenue drops 40–50%. Mitigate: lock 3-year forward contracts via Coffee Board.

🟢 Low

Hotel Competition

400+ registered homestays but high-quality boutique estate hotels underserved. Coffee estate positioning is the differentiator.

Latest Communications
WhatsApp — Sowmay ↔ Charan · Apr 5–6, 2026
Project Timeline
Mar 12, 2026
Charan shares Coorg estate interest — requests business analysis
Mar 12, 2026
Full business analysis delivered — coffee, hotel, residential, combined strategy
Apr 5, 2026
Sowmay asks about next move on Coorg
Apr 6, 2026
Charan reports 10 properties shortlisted, proposes 2-3 day trip
Apr 6, 2026
River property marked as priority — waiting on trip dates from Charan
TBD
Site visit trip — 2-3 days in Coorg
TBD
Property selection + legal due diligence
TBD
Deal closure + DC conversion filing
Due Diligence Checklist
RTC (Record of Rights, Tenancy and Crops) — current year
Pahani / Mutation Register extract
Encumbrance Certificate (15-year minimum)
Survey sketch (certified) from Village Accountant
Check forest land adjacency (within 500m of reserved forest)
Verify "coffee estate" classification in land records
Irrigation source and water rights documentation
Existing structures — khata, building plan approval
No pending government acquisition notices
Jamabandi (annual land register) for 10 years
Village-level ESA mapping cross-reference
Interview current estate workers — ops + labour disputes
Recommended Legal Structure
Structure Pvt Ltd + 3 SPVs
SPV 1 Plantation (agricultural)
SPV 2 Hotel (hospitality)
SPV 3 Real estate (residential)
Benefits Tax optimization, depreciation, investor-ready, clean exit