NSIC

Project Profiles

DAIRY FARMING
1. INTRODUCTION
India derives nearly 33% of the gross Domestic population from agriculture and has
66% of economically active population,engaged in agriculture. The share of livestock
product is estimated at 21% of total agriculture sector. The fact that dairing could
play a more constructive role in promoting rural welfare and reducing poverty is
increasly being recognised . Milk production alone involves more than 70 million
producers, each raising one or two cows/ buffaloes primarily for milk production .
The domesticated water buffalo is one of the gentlest of all farm animals ,hence it can
be breeded easily. The dairy sector offers a good opportunity to entrepreneurs in
India. India is a land of opportunity for those who are looking for new and expanding
markets.Growth propsects in the dairy sector are very bright.

2. MARKET
Dairy development in India has been acknowledged the world over as one of modern
India"s most sucessful development programme. India is the second largest milk
producing country with anticipated production of about 78 million tons during 19992000. The production of milk products stoood at 3.07 lakh tonnes in 1999-2000.
Production ofmilk powder including infant milk food has risen to 2.25 lakh tons in
1999-2000, whereas that of malted food is at 65000 tons. Off late market for milk
products is showing a steady increase.

3. MANUFACTURING PROCESS
Modern and well established scientific principles ,practices and skills should be used
to obtain maximum economic benefits from dairy farming. Some of the major norms
and recomondationtions are: Care full selection of animals, feeding of animals,milking
of animals

4. PRODUCTION CAPACITY PER ANNUM

Capacity
Selling Price

Rs.

28000 Ltrs per

annum
16 Per kg

5. PROJECT COST/CAPITAL INVESTMENT

S.No

1
2
3

Description

Preliminary & Preoperative Expns

Fixed Capital
Working Capital for
Total Project Cost

Amount Rs.

month(s)

1500
440000
20200
461700

NSIC

Project Profiles

6. MEANS OF FINANCE
S.No

1
2
3

Description

Promoter Contribution
Subsidy /Soft Loan
Term Loan
Total

%age

Amount Rs.

15%
20%
65%

69255
92340
300105
461700

7. FINANCIAL ASPECTS
A. FIXED CAPITAL
i. Land and Buildings

Rented

1500 per month

ii. Machinery and Equipment

S.No

1
2
3

Description

Buffellows
Shed
Milk testing machine
Total

Qty.

Nos
Lum

20
1
1

Rate

Amount Rs.

20000
20000
20000

400000
20000
20000
440000

B. WORKING CAPITAL
i. Salaries & Wages (per month)
S.No

1
2
3

Description

Nos.

Supervisor/Entrepreneur
Skilled
Unskilled
Total

1
1
2

Sal/mon. Amount Rs.

2500
2000
1200

2500
2000
2400
6900

ii. Raw Material (per month)

S.No

Description

Feed

Unit

Qty.

Kgs

2200

Rate

Amount Rs.

Total

8800
8800

iii. Utilities (per month)

S.No

1
2

Description

Power
Water

Unit

LS
LS
Total

Amount Rs.

500
500
1000

iv. Other Expenses (per month)

S.No

1
2
3

Description

Postage & Stationery Expenses

Transportation Expenses
Miscellaneous Expenses
Total

Amount Rs.

500
1000
500
2000

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Project Profiles

v. Total Working Capital (per month)

S.No

1
2
3
4
5

Description

Amount Rs.

Rent
Salaries and Wages
Raw Material
Utilities
Other Expenses
Total

1500
6900
8800
1000
2000
20200

8. COST OF PRODUCTION (PER ANNUM)

S.No

1
2
3

Description

Total Working Capital

Depreciation
Interest
Total

Amount Rs.

@
@

242400
66000
36013
344413

15%
12%

9. TURNOVER (PER YEAR)

S.No

Description

Unit

Qty.

Ltrs per annum28000

Rate Rs. Amount Rs.

16

Total

448000
448000

10. FIXED COST (PER YEAR)

S.No

1
2
3
4
5

Description

Depreciation
Interest
Rent
Salaries & Wages
@
Other Expenses incl. Utilities @
Total

Amount Rs.

66000
36013
18000
33120
14400
167533

40%
40%

11. PROFIT ANALYSIS & RATIOS

1
2
3
4

Net Profit
Percentage of Profit on Sales
Percentage of Return on Investment
Break Even Point

Rs.

103587
23%
22%
62%