PROJECT PROFILE (DAIRY FARM)

(Holstein Friesian Cows)

COST OF BUILDING CONSTRUCTION
1. Animal shed for 140 cows
@ ₹ 40/- per cow        -         5,600 F2
2. Shed for heifer, calf
and sick animals        -            500 F2
3. Milking parlour       -            500 F2
4. Store room for feed
and equipments         -            500 F2
Total area                    -         7,100 F2
Cost of construction
@ ₹ 1,000/- per F2     -       71,00,000
5. Office cum m usilk retail
sales room                  -            400 F2
Cost - @ 1,500/- per F2       6,00,000
6. Residence 3 rooms with
toilets - 450 F2
Cost @ ₹ 1,500/-                  6,75,000
7. Workers' shed with
toilets, kitchen and dining
space -                          -       1,000 F2
Cost 1000 F2 @ ₹ 1200/-  12,00,000
Total cost -                          95,75,000
(Cost includes plumbing,
electrification and painting)

Cost of well, storage tank, 
pipe lines, motors including electrification, cow dung pit 
with cover and
waste disposal pit      -       6,00,000

Furniture and fixtures, lap 
top, utensils etc          -       6,00,000
                                          -----------------
Total                                1,07,75,000

Equipments
1. Milking equipment 
double bucket - 20 sets
@ ₹ 45,000/- per set -        9,00,000
2. Milk chilling unit
5,000 ltrs cap.           -        5,00,000
3. Chill tank 3000 ltrs.       3,00,000
4. Chaff cutter - 2 nos          40,000
5. Compressor for shed
cleaning - 1 no.                     25,000
6. Sprinkler system - 1 no.  50,000
7. Spade, sickle, cutters etc15,000
8. Solar water heater -          35,000
9. Platform balance - 1 no.  20,000
10.Pick up van with
trailer                         - 1 no 5,00,000  
11. Tata 407 truck
2.5 ton cap.                       11,00,000
12. Motor cycle - 1 no.          70,000
                                          -----------------
Total                                   35,55,000

COST OF COW
Milking cows HF, landing
cost @ ₹ 80,000/- each   80,00,000
for 100 nos
Heifer cow HF 
@ ₹ 60,000/-                     36,00,000
 for 60 nos                                          
Total                                1,16,00,000

OTHER EXPENSES
1. Veterinary exp. per
cow @ ₹ 15,000/-              24,00,000
2. Insurance charge
@ ₹ 450/- per cow -                72,000
                                             ---------------
Total                          -          24,72,000

FEED
Average feed per animal
during lactation period
a) Concentrate @ 4.5 kg
per day @ ₹ 20/- per kg - 90.00
b) Green fodder 20 kg per
day @ ₹ 3/- per kg          - 60.00
c) Dry fodder 4 kg per day
@ ₹ 5/- per kg                 - 20.00
Total per day per cow    170.00
Exp per annum
100×170×365          - 62,05,000

Heifer
a) Concentrate feed
1.5 kg @20/- per kg       - 30.00
b) Green fodder 15 kg/
day @ ₹ 3/- per kg          - 45.00
c) Dry fodder 5 kg/day
@ ₹ 5/- per kg                 - 25.00
Total per day per cow    100.00
Exp per annum
60×100×365             - 21,90,000

Total cost of feed
per annum                - 83,95,000

MISC EXPENSES
1. R&M of vehicles -    7,20,000
2. Electricity charges  6,00,000
3. Exp for lease of 
land                               3,00,000
Total                    -      16,20,000

MAN POWER (Salary per month)
1. Veterinary Assistant 1 no. 30,000 
2. Skilled workers          4       27,000
3. Semi skilled workers 3      22,000
4. Unskilled workers      2      18,000
5. Cook                            1      30,000
6. Driver                           1      30,000
7. Helper                          1      18,000
8. Manager cum Acctt.  1      35,000
9. Security guards          3      18,000
Total per month 3,77,000
Per annum                          45,24,000
Food exp for 20 persons
per annum                          10,00,000
Total                                    55,24,000

ABSTRACT OF COST
Building, furniture etc    1,07,75,000
Equipments                        35,55,000
Cows                                1,16,00,000
Total                                 2,59,30,000

Feed                                    83,95,000
Veterinary, insurance etc 24,72,000
Other exp                           16,20,000
Staff wages                       45,24,000
Food expenses                 10,00,000
Total                                1,79,91,000

Grand Total                    4,39,41,000
                                         ------------------

Collateral security offered to the Bank:
Property owned by one of the partners
Sri Santhosh, located near Puthukkad,
Thrissur.
1. Land with tar road frontage
    2 acres @ ₹ 2 lakhs per cent
    = ₹ 4,00,00,000
2. Land with tar road frontage
     near township - 90 cents
     @ ₹ 2 lakhs per cent
     = ₹ 1,80,00,000
Total value of the property
     = ₹ 5,80,00,000
Existing bank loan against the
property - _ ₹ 1,00,00,000
Loan required from bank for the
Dairy project - ₹ 2,50,00,000
Repayable in five years.

Fund to be brought by the promoters
of the project by way of margin money,
working capital etc = 
 
Project cost                       4,39,41,000
Less term loan                  2,50,00,000
Promoters contribution   1,89,41,000
---------------------------------------------------------
1st YEAR
--------------
Income:
Milk (organic)
100 cows × 20 ltrs each ×
₹ 75.00 per ltr × 
365 days =                        5,47,50,000

Cow dung:
10 kg per day × 160 cows
× 365 days × ₹ 0.60 per kg
                                        =      3,50,400
Total income                 = 5,51,00,400
Less expenses              = 1,79,91,000
Balance                          = 3,71,09,400

Repayment to bank:
Principal 2,50,00,000 ÷
5 years                           =   50,00,000
Interest @ 10.5% p.a    =   26,25,000
Total payment to bank =   76,25,000
Loan balance                   2,00,00,000

Closing balance              2,94,84,400

---------------------------------------------------------
2nd YEAR
----------------
Opening balance            2,94,84,400

Investment
Milking cows 100 nos
@ ₹ 80,000 each               80,00,000

Shed for 100 cows 
@ 40 F2 each = 4000 F2 ×
₹ 1100 per F2                    44,00,000

Equipments and 
vehicles                             10,00,000
                                           ----------------
Total                                1,34,00,000
Balance                           1,60,84,400

Income
Milk
160 × 20 × 75 × 365 =   8,76,00,000
Cow dung
260 × 10 × 365 × 0.6=        5,69,400
Total                                8,81,69,400

Expenses
Feed 
Milking cow @ ₹ 200 each
160 × 200 × 365   =       1,16,80,000
Heifer @ ₹ 130 each
100 × 130 × 365   =          47,45,000
Veterinary
260 × 15,000         =          39,00,000
Insurance
260 × 450              =             1,17,400
R&M of vehicles   =           15,00,000
Electricity charges=            8,00,000
Misc exp                =            5,00,000
Salary and wages =          55,00,000
Food exp                =          14,00,000
                                            ---------------
Total expenses                3,01,42,400

Balance 
10,42,53,800 - 
  3,01,42,400          =       7,41,11,400

Payment to bank:
Principal  50,00,000
Interest    21,00,000
Total                                   71,00,000

Closing balance             6,70,11,400
-------------------------------------------------------
3rd YEAR
---------------
Opening balance           6,70,11,400

Investment
Purchase of 5 acre
land                                 1,75,00,000  
Milking cow 100 nos
@ ₹ 90,000                        90,00,000
Construction of shed       50,00,000
Truck with chiller tank     25,00,000
                                            ---------------
Total                                3,40,00,000

Balance                          3,30,11,400

Income
Milk
200×20×75×365 =      10,95,00,000
Cow dung
360×10×365×0.6 =             7,88,400
                                      --------------------
Total                              11,02,88,400
Balance                     

Expenses
Feed
Milking cows @ ₹ 200/-
200×200×365  =            1,46,00,000
Heifer @ ₹ 150/-
160×150×365  =               87,60,000

Veterinary
360 cows @ ₹ 15,000/-
Insurance
360 × 450/-
R&M of vehicles                  20,00,000
Equipments, tools and
other misc exp                       5,00,000
Electricity                             10,00,000
Salary and wages                60,00,000
Food exp                               16,00,000
Contingency exp.                 10,00,000
                                               ----------------
Total                                    3,54,60,000
Balance                             10,78,39,800  

Repayment to bank
Balance of principal           1,50,00,000
Principal repayment              50,00,000
Interest                                   15,75,000 
Total payable                         65,75,000 
Balance of loan                  1,00,00,000  

Net balance                      10,12,64,800
------------------------------------------------------------        4th YEAR
      ---------------             
Opening balance              10,12,64,800

Investment
Purchase of 5 acre
land                                      1,75,00,000
Construction of shed            60,00,000
Vehicles                                  25,00,000
Equipments                            25,00,000
Milking cows 100 nos
@ ₹ 90,000/- each                 90,00,000
Total                         -           3,75,00,000

Balance                    -           6,37,64,800

Income 
Milk 260×20×75×365 =   14,23,50,000
Cow dung 
460×10×365×0.6        =        10,07,400
Total                             =   14,33,57,400
Balance                             20,71,22,200

Expenses
Feed, milking cow
260×200×365             =      1,89,80,000
Heifer 200×150×365 =      1,09,50,000
Veterinary exp
460×15,000/-              =        69,00,000
Insurance
460×450                      =          2,07,000
R&M of vehicles         =        30,00,000
Electricity                    =         11,00,000
Salary and wages      =         66,00,000
Food expenses          =         18,00,000
Contingency               =         12,00,000
                                               ----------------
Total                                    5,07,37,000
Balance                            15,63,85,200
                                           --------------------
Bank payment
Balance principal               1,00,00,000
Interest                                   10,50,000
Principal repayment              50,00,000
Total payment to bank          60,50,000
Balance loan                          50,00,000

Closing balance               15,03,35,200
-----------------------------------------------------------
5th YEAR
---------------
Opening balance             15,03,35,200

Investment 
Construction of shed           70,00,000
Misc construction                10,00,000
Milking cows 100 nos
@ ₹ 90,000/- each                90,00,000  
Vehicles                                 25,00,000
Equipments                           20,00,000
                                                ---------------
Total                                    2,15,00,000 
Net balance                      12,88,35,200

Income
Milk 
300 cows ×20×75×365 =16,42,50,000 
Cow dung
560×10×365×0.6           =     12,26,400

Balance available            29,43,11,600

Expenses
Feed milking cows
300 cows× ₹ 200×365  =   2,19,00,000
Heifer
260 cows× ₹ 150×365  =   1,42,35,000
Veterinary exp 
560×15,000/-                 =      84,00,000
Insurance
560×450/-                      =         2,52,000
R&M of vehicles            =       40,00,000
Electricity                       =       12,50,000
Salary and wages         =       75,00,000
Food expenses             =       20,00,000
Contingency                  =       15,00,000
                                                -----------------
Total                                     6,10,37,000

Bank payment
Balance principal                  50,00,000
Interest                                     5,25,000
Total payment to bank         55,25,000
Loan outstanding                  Nil

Net balance available       22,77,49,600
------------------------------------------------------------
Note:
1) Cost of semen to be brought from
Denmark and charges for artificial insemination are not included  above.
Financial provision is made.
2) Since some concessions are likely to be made in agriculture income through dairy farm, IT payment is also not included above. However financial provisions are made every year.
3) Farm is likely to be located in Vettampara of Keerampara village,
Ernakulam Distt. Motorable tar road, 3 ph power connection within the land and enough water is available.
4) ID cards of promoters namely:
Sri Ananthakrishnan, Sri Mahesh,
Sri Santhosh and KV George shall be sent separately.

Prepared by
KV George

     
  
        


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