dairy project model

Milk Project

Confidential.

Prepared ByY.Narayana Rao

9705365799

Sri Sai Satya Dairy -Buffaloes

ASSUMPTION PARAMETERS UNITSA Sale Price of Milk per Litre Rs. 50

B Sale Price of Buffalos Sold Rs. 20000

C Average Yeild per Lactation ltrs 2400

D Average Lacatation Days Days 280

C Day Yeild per Lactation ltrs 8

E Feed Cost per Kg Rs 15

F Land Required for10Animals for Green FodAcres 2

G Land Lease & Green Fodder Expenses per Rs. 25000

H Year length days 365

I Calving Interval days 410

J Feed Per Animal Per day Kgs 5

K Feed Per Animal Per dry days Kgs 2

L Dry Fodder Per Animal kgs 5

M Dry Fodder Cost /Kgs Rs. 3.5

N Sale Price of Male calves Rs. 5000

O Heifer Ration Kgs 1

P Heifer Feed cost per Kg Rs 13

Q Cost of Manure per Ton Rs 1000

R Labour day Cost Rs 300

S Total Personal Required No 2

U Insurance % of Vaue 4%

V Electricty per day Rs. 100

W Vet Cost per animal /annum Rs 1000Doctor Charges - Rs. 100 per animal per Month

X No of Animals NO 10

Y Animal Purchase Price Rs. 60000

Z Management Drawings / Month Rs. 15000

Other Assumptions

The figures in the Herd Improvenment plan are rounded of figures and they may not add up to the totals

Discounting Factor is Taken for calculation of IRR as 15%

Milk Project

Confidential.Prepared By

Y.Narayana Rao9705365799


TOTAL PROJECT COST & DETAILS OF LOAN REQUESTEDRs.

Infrastructure sheds 220,000.00

Equipment & Machinery 185,000.00

Livestock 600,000.00

Maintainence for cost first quarter 169,411.25

Total Investment 100% ###

Owners Contribution of Total Investment 25% 293,602.81

Bankers Contribution remaining of investment 75% 880,808.44

Nabard Subsidy on Total Project Cost Subject to Ceiling of 25% 11% 125,000.00 Or Rs.1,25,000/- which ever is Lower

Net Effective Loan 64% 755,808.44


INFRASTRUCTURE DETAILSAnimals Area per AnimalTotal Area Price / Total Cost No Sqft Sqft Sqft Rs.

Adult Animal Shed 10 60 600 200 120,000.00

Calves Shed 10 30 300 200 60,000.00

Stores cum Office 10 20 200 200 40,000.00

Total Investment in Infrastructure 220,000.00

Milk Project



EQUIPMENT & MACHINERY DETAILSNo of AnimaNo per AnimalTotal No Price Per UnRs.

Equipment Buckets 10 1 10 250 2,500.00Chains 10 1 10 500 5,000.00Others 10 1 10 250 2,500.00

Chaff cutter 1 1 125000 125,000.00

Water tank and others 50,000.00

Total Investment in Equipment and Machinery 185,000.00

ANIMAL INTRODUCTION PLAN & PURCHASE SCHEDULE COSTDetails Term 1 Term 2 Term 3

No of buffalos Introduced 10 4 4 2

Price of Buffalo (incl of Insurance) 60000 240,000.00 240,000.00 120,000.00for a buffalo yeilding 8 litres a day

Total investment in livestock 600,000.00

EXPENDITURE FOR THE FIRST QUARTERRs.

Maintenance cost for first three months, 169,411.25 Total Maintainence for First Quarter 169,411.25

Milk Project

ConfidentialPrepared By



HERD IMPROVEMENT PLAN Years1 2 3 4 5 6 7

Buffaloes:On Hand at the beginning 8 2 0 0 0 0 0Heifers grown into buffaloes 3 3 3 3less buffaloes sold 3 3 3 3on hand at the end of year 8 10 10 10 10 10 10Heiferson hand at the beginning - 3 4 4 4 4 4less died - 0 0 0 0 0 0grown into buffaloes 3 3 3 3 3 3CalvesOn hand at the beginning 8 10 10 10 10 10 10less died 2 3 3 3 3 3 3Balance 6 8 8 8 8 8 8Sex ratio 50% 50% 50% 50% 50% 50% 50%Female calves at the year en 3 4 4 4 4 4 4

Milk Project



Sri Sai Satya Dairy -BuffaloesLACTATION STATEMENT

YEAR MILCH ANIMALS No.of Total No. of Total Total MilkBatch No.of lactation lactation Dry Dry per Annum

no Animals Days Days Days days Litres

1 A 4 280 1120 65 260B 4 180 720 0 0

TOTAL LACTATION DAYS AT THE END OF YEAR 1 1840 260 14,7202 A 4 300 1200 65 260

B 4 245 980 120 480C 2 280 560 85 170


B 4 215 860 150 600C 2 280 560 85 170


B 4 230 920 135 540C 2 235 470 130 260


B 4 280 1120 85 340C 2 215 430 150 300


B 4 280 1120 85 340C 2 215 430 150 300

TOTAL LACTATION DAYS AT THE END OF YEAR 6 2410 1240 19,280

Milk Project




INCOME STATEMENTS

INCOME HEADS YEAR1 2 3 4 5 6

A Total Milk Production Ltrs 14,720 21,920 18,880 18,000 19,280 19,280B Male calves Sold 3 4 4 4 4 4C Old Buffaloes Sold 0 0 0 3 3 3D Manure Produced tons 500 500 500 500 500 500

INCOME IN RS. YEAR1 2 3 4 5 6

A Income From Milk 736,000.00 1,096,000.00 944,000.00 900,000.00 964,000.00 964,000.00 B Income From Male calves Sale 15,000.00 18,750.00 18,750.00 18,750.00 18,750.00 18,750.00 C Income from Old Buffaloes Sale - - - 54,000.00 67,500.00 67,500.00 D Income from Manure Sale 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00

TOTAL INCOME ### ### ### ### ### ###

Milk Project




EXPENDITURE STATEMENTS

EXPENDITURE HEADS YEAR1 2 3 4 5 6

A Lactation Days 1,840 2740 2,360 2250 2,410 2,410B Dry Days 260 910 1,290 1400 1,240 1,240C Heifer Days 2,190 3833 5475 5475 5475 5475D Feed Requirement (kgs) 9,720 15,520 14,380 14,050 14,530 14,530E Heifer Feed Requirement (kgs) 2,190 3,833 5,475 5,475 5,475 5,475F Dry Fodder Requirement (kgs) 18,250 23,725 30,569 30,569 30,569 30,569G Labor days 730 730 730 730 730 730I Lease For Shed 0 0 0 0 0 0

EXPENDITURE IN RS. YEAR1 2 3 4 5 6

A Feed Cost 145,800.00 232,800.00 215,700.00 210,750.00 217,950.00 217,950.00 B Heifer Feed Cost 28,470.00 49,822.50 71,175.00 71,175.00 71,175.00 71,175.00 C Green Fodder Cost 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 D Dry Fodder Cost 63,875.00 83,037.50 106,990.63 106,990.63 106,990.63 106,990.63 E Labor Cost 219,000.00 219,000.00 219,000.00 219,000.00 219,000.00 219,000.00 F Insurance Cost 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 G Vetrinary Cost 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 H Electricity Cost 36,500.00 36,500.00 36,500.00 36,500.00 36,500.00 36,500.00 I Miscelleneous Expenditure 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00

TOTAL EXPENDITURE 677,645.00 805,160.00 833,365.63 828,415.63 835,615.63 835,615.63

Milk Project




PROFIT & LOSS STATEMENT Year1 2 3 4 5 6

(in Rupees)

A Gross income 1,251,000 1,614,750 1,462,750 1,472,750 1,550,250 1,550,250

B Net expenditure 677,645 805,160 833,366 828,416 835,616 835,616

C Operationg Profit (A - B) 573,355 809,590 629,384 644,334 714,634 714,634

D Interest on Loan 78,937 83,292 58,199 33,106 8,014 -5,403

E PBT 494,418 726,298 571,185 611,228 706,621 720,037

E Management Drawings 180,000 180,000 180,000 180,000 180,000 180,000

F Net Profit 314,418 546,298 391,185 431,228 526,621 540,037Sri Sai Satya Dairy -Buffaloes

Cost Profit Analysis Year1 2 3 4 5 6

(in Percentage)A Feed Cost 22% 29% 26% 25% 26% 26%B Heifer Feed Cost 4% 6% 9% 9% 9% 9%C Green Fodder Cost 7% 6% 6% 6% 6% 6%D Dry Fodder Cost 9% 10% 13% 13% 13% 13%

Feed & Fodder Cost 43% 52% 53% 53% 53% 53%E Labor Cost 32% 27% 26% 26% 26% 26%F Insurance Cost 4% 3% 3% 3% 3% 3%G Vetrinary Cost 1% 1% 1% 1% 1% 1%H Electricity Cost 5% 5% 4% 4% 4% 4%I Miscelleneous Expenditure 15% 12% 12% 12% 12% 12%

Milk Project



Sri Sai Satya Dairy -BuffaloesTERM LOAN REPAYMENT SCHEDULE

Actual Term Loan Rs. 880,808.44 MonthsSubsidy Amount Rs. 125,000.00 Reapayment Period 66Net Effective Term Loan Rs. 755,808.44 Moratorium 3Interest Rate 14.50% Instalments 63Instalment Period Monthly Effective Instalment 63

Actual EffectiveInstalment Loan Loan MonthlyOutstanding Interest Principle Total Loan

No. Amount Amount Interest Loan Due Due Reapyment BalanceRs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.

1 880,808.44 755,808.44 9,132.69 889,941.12 0.00 0.00 0.00 889,941.122 889,941.12 764,941.12 9,243.04 899,184.16 0.00 0.00 0.00 899,184.163 899,184.16 774,184.16 9,354.73 908,538.89 0.00 0.00 0.00 908,538.894 908,538.89 783,538.89 9,467.76 918,006.65 9,467.76 ### 23,889.01 894,117.635 894,117.63 769,117.63 9,293.50 903,411.14 9,293.50 ### 23,714.76 879,696.386 879,696.38 754,696.38 9,119.25 888,815.63 9,119.25 ### 23,540.50 865,275.137 865,275.13 740,275.13 8,944.99 874,220.12 8,944.99 ### 23,366.24 850,853.888 850,853.88 725,853.88 8,770.73 859,624.61 8,770.73 ### 23,191.99 836,432.639 836,432.63 711,432.63 8,596.48 845,029.10 8,596.48 ### 23,017.73 822,011.37

10 822,011.37 697,011.37 8,422.22 830,433.59 8,422.22 ### 22,843.47 807,590.1211 807,590.12 682,590.12 8,247.96 815,838.09 8,247.96 ### 22,669.22 793,168.8712 793,168.87 668,168.87 8,073.71 801,242.58 8,073.71 ### 22,494.96 778,747.6213 778,747.62 653,747.62 7,899.45 786,647.07 7,899.45 ### 22,320.70 764,326.3614 764,326.36 639,326.36 7,725.19 772,051.56 7,725.19 ### 22,146.45 749,905.1115 749,905.11 624,905.11 7,550.94 757,456.05 7,550.94 ### 21,972.19 735,483.8616 735,483.86 610,483.86 7,376.68 742,860.54 7,376.68 ### 21,797.93 721,062.6117 721,062.61 596,062.61 7,202.42 728,265.03 7,202.42 ### 21,623.68 706,641.3618 706,641.36 581,641.36 7,028.17 713,669.52 7,028.17 ### 21,449.42 692,220.1019 692,220.10 567,220.10 6,853.91 699,074.01 6,853.91 ### 21,275.16 677,798.8520 677,798.85 552,798.85 6,679.65 684,478.50 6,679.65 ### 21,100.90 663,377.6021 663,377.60 538,377.60 6,505.40 669,883.00 6,505.40 ### 20,926.65 648,956.3522 648,956.35 523,956.35 6,331.14 655,287.49 6,331.14 ### 20,752.39 634,535.1023 634,535.10 509,535.10 6,156.88 640,691.98 6,156.88 ### 20,578.13 620,113.8424 620,113.84 495,113.84 5,982.63 626,096.47 5,982.63 ### 20,403.88 605,692.5925 605,692.59 480,692.59 5,808.37 611,500.96 5,808.37 ### 20,229.62 591,271.3426 591,271.34 466,271.34 5,634.11 596,905.45 5,634.11 ### 20,055.36 576,850.0927 576,850.09 451,850.09 5,459.86 582,309.94 5,459.86 ### 19,881.11 562,428.8328 562,428.83 437,428.83 5,285.60 567,714.43 5,285.60 ### 19,706.85 548,007.5829 548,007.58 423,007.58 5,111.34 553,118.92 5,111.34 ### 19,532.59 533,586.3330 533,586.33 408,586.33 4,937.08 538,523.42 4,937.08 ### 19,358.34 519,165.0831 519,165.08 394,165.08 4,762.83 523,927.91 4,762.83 ### 19,184.08 504,743.8332 504,743.83 379,743.83 4,588.57 509,332.40 4,588.57 ### 19,009.82 490,322.5733 490,322.57 365,322.57 4,414.31 494,736.89 4,414.31 ### 18,835.57 475,901.3234 475,901.32 350,901.32 4,240.06 480,141.38 4,240.06 ### 18,661.31 461,480.0735 461,480.07 336,480.07 4,065.80 465,545.87 4,065.80 ### 18,487.05 447,058.8236 447,058.82 322,058.82 3,891.54 450,950.36 3,891.54 ### 18,312.80 432,637.57

Milk Project



Sri Sai Satya Dairy -BuffaloesTERM LOAN REPAYMENT SCHEDULE

Actual Term Loan Rs. 880,808.44 MonthsSubsidy Amount Rs. 125,000.00 Reapayment Period 66Net Effective Term Loan Rs. 755,808.44 Moratorium 6Interest Rate 14.50% Instalments 60Instalment Period Monthly Effective Instalment 63

Actual EffectiveInstalment Loan Loan MonthlyOutstanding Interest Principle Total Loan

No. Amount Amount Interest Loan Due Due Reapyment BalanceRs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.

37 432,637.57 307,637.57 3,717.29 436,354.85 3,717.29 ### 18,138.54 418,216.3138 418,216.31 293,216.31 3,543.03 421,759.34 3,543.03 ### 17,964.28 403,795.0639 403,795.06 278,795.06 3,368.77 407,163.83 3,368.77 ### 17,790.03 389,373.8140 389,373.81 264,373.81 3,194.52 392,568.33 3,194.52 ### 17,615.77 374,952.5641 374,952.56 249,952.56 3,020.26 377,972.82 3,020.26 ### 17,441.51 360,531.3042 360,531.30 235,531.30 2,846.00 363,377.31 2,846.00 ### 17,267.26 346,110.0543 346,110.05 221,110.05 2,671.75 348,781.80 2,671.75 ### 17,093.00 331,688.8044 331,688.80 206,688.80 2,497.49 334,186.29 2,497.49 ### 16,918.74 317,267.5545 317,267.55 192,267.55 2,323.23 319,590.78 2,323.23 ### 16,744.49 302,846.3046 302,846.30 177,846.30 2,148.98 304,995.27 2,148.98 ### 16,570.23 288,425.0447 288,425.04 163,425.04 1,974.72 290,399.76 1,974.72 ### 16,395.97 274,003.7948 274,003.79 149,003.79 1,800.46 275,804.25 1,800.46 ### 16,221.71 259,582.5449 259,582.54 134,582.54 1,626.21 261,208.74 1,626.21 ### 16,047.46 245,161.2950 245,161.29 120,161.29 1,451.95 246,613.24 1,451.95 ### 15,873.20 230,740.0351 230,740.03 105,740.03 1,277.69 232,017.73 1,277.69 ### 15,698.94 216,318.7852 216,318.78 91,318.78 1,103.44 217,422.22 1,103.44 ### 15,524.69 201,897.5353 201,897.53 76,897.53 929.18 202,826.71 929.18 ### 15,350.43 187,476.2854 187,476.28 62,476.28 754.92 188,231.20 754.92 ### 15,176.17 173,055.0355 173,055.03 48,055.03 580.66 173,635.69 580.66 ### 15,001.92 158,633.7756 158,633.77 33,633.77 406.41 159,040.18 406.41 ### 14,827.66 144,212.5257 144,212.52 19,212.52 232.15 144,444.67 232.15 ### 14,653.40 129,791.2758 129,791.27 4,791.27 57.89 129,849.16 57.89 ### 14,479.15 115,370.0259 115,370.02 -9,629.98 -116.36 115,253.66 -116.36 ### 14,304.89 100,948.7760 100,948.77 -24,051.23 -290.62 100,658.15 -290.62 ### 14,130.63 86,527.5161 86,527.51 -38,472.49 -464.88 86,062.64 -464.88 ### 13,956.38 72,106.2662 72,106.26 -52,893.74 -639.13 71,467.13 -639.13 ### 13,782.12 57,685.0163 57,685.01 -67,314.99 -813.39 56,871.62 -813.39 ### 13,607.86 43,263.7664 43,263.76 -81,736.24 -987.65 42,276.11 -987.65 ### 13,433.61 28,842.5065 28,842.50 -96,157.50 -1,161.90 27,680.60 -1,161.90 ### 13,259.35 14,421.2566 14,421.25 -110,578.75 -1,336.16 13,085.09 -1,336.16 ### 13,085.09 0.00

Milk Project




CALCULATION OF MONTHLY INSTALMENT PAYABLE Rs.

Bank Loan after adjusting for Subsidy from NABARD 755,808

Total Interest Payable on Net loan 256,145

Total amount payable 1,011,954

Equated Monthly instalment EMI 28,110


Yearly Financial Expenses StatementYear

Financial Expenditure Head 1 2 3 4 5 6

Interest Amount 78,937 83,292 58,199 33,106 8,014 -5,403

Principle Repayment Amount 129,791 173,055 173,055 173,055 173,055 86,528

Total Repayment 208,728 256,347 231,255 206,162 181,069 81,124


DEBT SERVICE RATIO CALCULATION Year1 2 3 4 5 6

Net Profit 314,418 546,298 391,185 431,228 526,621 540,037

Interest 78,937 83,292 58,199 33,106 8,014 -5,403

Cash Available for Debt Service 393,355 629,590 449,384 464,334 534,634 534,634

Total Repayable Amount 208,728 256,347 231,255 206,162 181,069 81,124

Debt Service Coverage Ratio 1.88 2.46 1.94 2.25 2.95 0.00

Interest Coverage Ratio 5 8 8 14 0 -

Sri Sai Satya Dairy -BuffaloesYear

FINANCIAL INDICATORS 0 1 2 3 4 5 6

Net Cash Flows -1,174,411 393,355 629,590 449,384 464,334 534,634 534,634

IRR 35%

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