Gayatri dairy

8/7/2019 Gayatri dairy

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By:- Vinay Kumar

Parag GoregaonkarRitesh Pathak

Naqui Shaikh


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` Introduction` Evolution of the business idea` Objective of the business` Business idea

` Operational structure` Marketing strategy` Implementation plan` Costing` Financial analysis` Second phase` Exit strategy` Q & A


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` India is the largest producer of milk

` Huge market potential in the metros, asMilk and

milk products constitute an integral part of the

daily diet of all Indian households, withoutexception, across all regions and all social and

economic categories.

` Over 70% of milk production is from unorganized

sector.


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Need & benefits of milk consumption` Milk plays an important role in daily diet

` It provides protein, fat carbohydrates and minerals

` Its calcium content.

Large number of unsatisfied consumers` Lack of purity, milk is either contaminated with water or urea.

` If they consume packaged milk, they dont find the natural taste as

its is treated chemically.

` Sometimes they get milk of morning in the evening and vice-versa.So customers are dissatisfied.

` They dont get the milk on time i.e either in morning before 9:00 am.


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Vision statement

` To provide the customers their true value for their

money, and add value to the society with an aim

of generating employment for the poor.Mission statement

` We propose to become the first choice of the

consumers when it comes to the requirement of

fresh n pure milk, as we want to get ourselvesknown for our good quality.


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` The concept of opening a dairy farm is to provide

consumers of metro the taste of pure and fresh

milk. We will supply milk to our customers on the

day the animal is being milked and that too at theprevailing market price, through our well managed

supply and logistics department. Also, our dairy

farm will be near to the cities so that we can

minimize the travelling time that is being taken.


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We will maintain our supply chain and purity maintenancethrough following measures:-

` We have to start our day as early as possible, which shouldnot exceed 3:00am.

` We have to finish milking of cows latest by 6:00am.` Since, supply of fresh n pure milk is our main usp, so we

have to reach city latest by 7:00am, this is the main reason,why, We are not going beyond 50kms to setup my dairyfarm, as we cannot cover more than 50kms in an hour.

` There will be two distribution centres in Delhi, one in

Patparganj area while the other at Rajendra Nagar this maychange respectively. The reason being these two places asthey lie in ring road and it will be easier to reach there.


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` After reaching the city they will be packed in oneand half lts pack and would be delivered to

customers at their door and the target to completethe delivery process latest by 8:30am.

` The same would be repeated for the milkproduced in the evening.

`

The surplus milk will be sold through ourdistribution centres.

` The food requirement of animal would be fulfilledby local as well as urban market as fodder foranimals are easily available.

` The amount of milk supplied would be realised ona monthly basis.


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Four ps

` Product specification

` Pricing strategy

` Promotiona)radio

b)sales personnel

c)newspaperd)hoardings & posters

` Place


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SWOT analysis:-

` Strength- it is the supply of fresh n pure milk

directly to the consumers.` Weakness- we dont have a brand image, but we

are sure that we will build our brand image

through our quality product.

` Opportunities- The huge market potential in the

national capital region and large number of

unsatisfied customers.

` Threats- The existing players are the biggest

threat. But, we are coming with our own unique

selling proposition, so we are sure to make an

impact.


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` Selection and obtaining a land will take one

month time.

` Two months time would be needed for erection

of sheds, fencing the land area and building thewhole dairy structure.

` Purchasing of animals would take another one

month time.

` So a total time of four months would be neededfor building the full capital structure and to start

the operation.


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` Initial investment required


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Particulars Cost if land is taken on lease(15 years) Cost if land is purchased on outright

Land (10 acres) 15,00,000 1,00,00,000

Fencing the land area 5,00,000 5,00,000

Construction of sheds & godowns 10,00,000 10,00,000

Purchase of animals(100 cows) 40,00,000 40,00,000

Refrigerator(1500 lts each) 3,00,000 3,00,000

Coolers& fans 50,000 50,000

Shops for DC 5,00,000 5,00,000

Containers 30,000 30,000

Vehicle 5,00,000 5,00,000

Water facilities construction 1,50,000 1,50,000

Construction of pool 1,00,000 1,00,000

Furniture 1,00,000 1,00,000

Two wheeler and bicycle 90,000 90,000

Packaging machine 80,000 80,000

Other expenses 3,00,000 3,00,000

Total 92,00,000 1,77,00,000

4.1 Initial investment required


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Operational cost required

Requirement Rate Cost

Maintenance

of animals

Whole year for

100 cows

100/cow 36,50,000

Insurance 100 cows 1,000 1,00,000

Labour charge 12 nos 3,000/month 3,96,000

Supervisors 2 nos 6,000/month 1,44,000

Driver 1 nos 4,500/month 54,000

Compounder 1 nos 5,000/month 60,000

Fuel cost - - 3,50,000

Shop rent 2 nos 6,000/month 1,44,000

Electrical

charges

- 2,000/month 24,000

Telephone

charges

- 2,000/month 24,000

Other costs - - 10,54,000

Total - - 60,00,000


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Financial summary

Projected profit and loss account for first four years:

Particulars 1 2 3 4

Sale of milk 1,36,87,500 2,05,31,250 2,73,75,000 5,47,50,000

Sale of cow

dung

1,12,500 2,18,750 3,25,000 7,50,000

Net revenue 1,38,00,000 2,07,50,000 2,77,00,000 5,55,00,000

0perating cost 60,00,000 90,00,000 1,20,00,000 2,40,00,000

Gross profit 78,00,000 1,17,50,000 1,57,00,000 3,15,00,000Depreciation

(39%)

15,60,000 23,50,000 31,40,000 63,00,000

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t cost

20,00,000 25,00,000 30,00,000 50,00,000

Other expense 5,40,000 9,00,000 10,60,000 12,00,000

Net profit 37,00,000 60,00,000 85,00,000 1,90,00,000

Tax 13,50,500 21,90,000 31,02,500 69,35,000

Pat 23,49,500 38,10,000 53,97,500 1,20,65,000


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` The second phase of the plan is very ambitious

which consists of bigger investments. It is for this

reason that we plan to start this phase at least

after two years of the establishment of the dairyfarm, as lot of expertise and management would

be needed. There would be multiple benefits that

would be realised for a longer period of time.


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` In this phase we intend to purchase around One

hundred acres of land along the radius of three

hundred kilometres around the Delhi NCR region.

And then we will purchase around 1000-3000 calfof higher breed and we will start animal farming. At

the initial stage we will start only with dairy farming

& fishing and then we will swiftly start with other

types animal farming activities.


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` Land:

` Animals:

` Fencing the land area:

` Sheds:` Building of ponds:

` Mode of transport:

` Manpower requirements:


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Particulars amount

cost of the land 5,00,00,000

cost of calves(1500nos) 30,00,000

fencing the land area 20,00,000construction of sheds 40,00,000

construction of ponds 10,00,000

other expenses required 50,00,000

TOTAL 6,50,00,000

Initial Investment Required:


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` In animal farming business there is multiple type of

sources from where income could be generated.

` These calves when they become a mature cow. Each

one could be sold for 25,000-30,000.

` Even if they are not sold, their milk that would be

generated could be sold through our established dairy

networks, or it can be processed and transformed into

other milk products.

` A creation of land bank, and a continuous appreciation

of the price of land.


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Documents

Gayatri dairy