POULTRY HATCHERY UNIT Introduction : Poultry meat is the fastest growing component of global meat production.

Poultry production in the country has shown a steady increase in the last decade. As a result, there has been a sharp rise in the availability of eggs and broilers. The country produced 800 million broilers in 2002 as compared to 350 million in 1995. The production of poultry meat in 2002 was 975 thousand tons as compared to 576 thousand tons in 1995. The value of India's poultry exports between 2005-06 stood at Rs 167.58 crore. India, the worlds second largest developing economy, now has a large and rapidly expending poultry sector. The Indian Poultry industry has transformed from meager backyard farming to a well-organized scientific techno commercial industry. Majority of Poultry industry is in organized sector contributing nearly 70% of the total output while rest 30% is coming from unorganized sector. The Status of poultry sector during 10th Plan was significant by contributing about 11,000 crores to national GDP, ranking 4th in egg production and 19th in broiler production in the world. The production was 45.2 billion eggs and about 2.0 million tons of chicken meat. The sector provides a great employment opportunity. It is estimated that more than 2 million people are employed directly or indirectly in this sector. It is further estimated that an increase of one egg and 50 gms of meat per capita consumption would create an employment opportunity for about 25,000 and 20,000 persons, respectively. Product uses: Poultry meat is the fastest growing animal protein, the uses of eggs and broiler meat are on the increase with growing population. Chicken is most popular causing among the non-vegetarian delicious dishes on Indian dining table is one or other type of the chicken based items. Market Potential: Despite the fact that the country's poultry industry is the fastest growing in the world, its potential to attract big-time foreign investment is negligible and will necessitate a host of changes greater integration, better cost-efficiencies and improvement in distribution. Poultry industry's potential for growth also stems from the fact that 80 per cent of India is nonvegetarian. Besides, poultry has no religious sentiment. India is likely to be among the fastest growing poultry consumption nations, due to rising affordability, population growth and conversion from vegetarianism. This is one reason that international market may look at the Indian poultry industry. In the Northeastern states there is a substantial shortage of chicken meats and eggs against the market demand. The poultry industry is well dominated in the Southern states of the country with nearly 60-70% of the total output coming from these States. However, marketing of the final product is still under the control of traders. Production Capacity (per annum): The capacity of the proposed unit has been estimated as under: Production per batch in 27 days Annual Production in 350 days 1000 chicks 13 batches 27,000 nos. 3,51,000 nos.

Basis: No. of working days: 350 days per year

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Infrastructure Requirement: The main Infrastructure facilities required are: Required shed: ` Office cum Store Power requierement: Water (required in every working day) 800 sq.ft. 200 sq.ft. 5 KW 5,000 Ltrs

Raw Materials/Consumables: The basic raw material for hatchery is foundation egg. The fonudatic egg will be required to procure from outside the region. The other materials are medicines, glucose and poultry feed which are locally available. A. Foundation Eggs for broiler/layer Annual Cost of Raw Materials 3.51 nos.X B. Medicine/Vaccination etc. Rs. 6.00 each, Rs. 6.00 each Rs. 21.06 Lakhs, Rs. 2.00 each,Total Rs.7.02

Total Cost of Raw Materials/consumables Rs 28.08 Lakhs Process of Manufacture: The major process steps are: (A Collection of eggs, (B. Testing of eggs using testing machine, (C. Laying the selected eggs inside the incubator carefully for setting, (D. After 18 days transfer the eggs to planting chamber, (E. The hatchery operation is 3 days duration. After 3 days baby chicks comes out from egg shell, (F. Removing baby chicks from the incubator, (G. The second batch of eggs should be placed in incubator after 3 days gap from the first batch operation. (H. Placing the baby chicks in separate chamber, (I. Medicines to be placed in incubator to avoid deceases. Suggested Location: Hatchery unit can be set up in the state capitals of Northeastern region and all district head quarters of Sikkim Such unit can also be set in other cities, towns and major urban centers keeping in mind the available transport network within the states/regions preferably Air Linkage. PROJECT ECONOMICS The total capital requirement estimated is Rs. 18.52 Lakhs as given below: Fixed Capital: Land 2000 sq.ft. Building/Civil Works a.) Hall cum shed 800 sq.ft. @ Rs. 700/sq.ft. b.) Office/store 200 sq. ft. @ Rs 600/ sq.ft. c.) Water System (including Bore Well + over head tank etc) 5,60,000 1,20,000 1,20,000 Rupees Own/lease

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Plant and Machinery Miscellaneous Fixed Assets, Electrical works & Other equipments Preliminary and pre-operative expenses

3,52,000

1,00,000 50,000 13,02,000

Working Capital: (Norms) Raw Materials/Consumables Working Expenses Finished Goods Receivables 1 month 1 month 15 days 10 days (Rupees) 2,34,000 41,000 1,40,00 1,35,000 5,50,000

Note: Working capital to be financed as:Margin Money: Bank Finance: Means of Finance: Promoters Equity Term Loan Production Expenses: (Rupees) Raw Materials/Consumables Wages & Salaries Utilities Repair & Maintenance Administrative Overheads Selling Expenses 10% on sales Depreciation Interest 28,08,000 3,83,000 1,06,000 25,000 40,000 4,91,000 85,000 1,93,000 41,31,000 (Rupees) 3,76,000 11,20,000 24,00,000 1,94,000 3,56,000

Profitability: Based on the sales Turn over and the production Expenses. The profit would be Rs. 7.83 Lakhs per year. This works out to a return on capital investment of 42 %. The Unit would break-even at about 48% of the rated capacity. Break Even Analysis: A. Variable Cost: Raw Materials/Consumables Utilities Selling Expenses (Rupees) 28,08,000 1,06,000 4,91,000 34,05,000

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B. Semi-Variable Cost: (Rupees) Wages & Salaries Repair & Maintenance Administrative Overheads Depreciation Interest 3,83,000 25,000 40,000 85,000 1,93,000 7,26,000 49.14 lakhs 15.09 lakhs 48%

C. Sales Turnover: D. Contribution: E. Break Even Point: Manpower Requirement: Personnel Supervisor (Technical) Skilled Workers Semi-skilled Workers Salesman

Nos. 1 1 2 1

Salary per person (Rs.) 7000 6000 5000 6000 Total Rs.

Salary Bill (Rs) 7000 6000 10000 6000 29,000

Salary Bill Rs. 3.48 Lakhs + Benefits @ 10% annually i.e. Rs. 0.35 Total Annual Salary Bill: Rs. 3.83 Sales Realisation: By sale of day old broiler and layer chicks at Rs. 14.00(avg.) at ex-factory rate the total sales realization would be Rs. 49.14 Lakhs Plant & Machinery: Particular Poultry egg setter 30,000 eggs capacity chickman series, pressed laminated panel without bottom. Poultry Egg hatcher 10,000 Eggs capacity chickmam series,fiber body,without bottom Essential spares/ Accessories Like: Setting Trolley Electric motor H.P. Electric motor 1/2 H.P. Electric motor 1/3 H.P. GE Transfer table Jumbo Thermometer Relay Box Turning Timer Dry wet Thermometer Heater U type Solenoid valve complete set Solenoid Coil

Qty. Nos 1

Price (Rs.) 1,70,000

(Rupees) 1,70,000

98,000 Total Rs.

98,000 2,68,000 25,000

2 1 1 1 1 1 1 1 4 2 1 2

Add. 20% on the cost of P/M as C.S.T. packaging, forwarding, loading/unloading etc. Total Rs.

2,93,000 59,000 3,52,000

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Highlights: The Major highlights of the project are as follows: Total Capital Requirement Promoters Contribution Annual Sales Realization Annual Production Expenses Annual Profit Return on Sales Break-even Point No. of person employed Address of Machinery Suppliers: M/S Karamsar Poultry Appliances(Regd.) C-120,Hari Nagar Clock Tower, New Delhi-110 64 M/S Metro Poultry Products (I) ltd. Paltanbazar ,Guwahati-3 Rs. 18.52 Lakhs Rs. 3.76 Lakhs Rs. 49.14 Lakhs Rs. 41.31 Lakhs Rs. 7.83 Lakhs 16% 48% 5

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