INDUS DAIRY FARM

PURE & HEALTHY PRODUCTS

BY:
ISMAIL RAJPUT
MAZOOR MEMON
SAAD
IHSAN MEMON
HIRA JATOI
RUQIA KHUWAJA

Indus Dairy Farm

1. Introduction:
The name of the venture is Indus Dairy Form, locatacted near Naushahro Feroze
bypass, in the province of Sindh, Pakistan. Its function is to provide milk and value added dairy
products to the Naushahro Feroze and its surroundings and some restaurents, hotels and
industries, The business will also provide cattle care services. For this venture one acer land
will be purchased in Rs.600,000. The total amount will be invested in the business will
approxemetly Rs. 5530,500. We will start this business with 9 buffalos and 6 cows. Our focus
will be on Sindh province specially on Naushahroferoz District. We would also rear animals for
sacrificial purposes that would almost yield 10000 per animal within two months. Initially we
plan to hold 2 calves for sacrificial purposes. The number of animals for fattening purposes
would be increased with our growth. Finally we would focus on a niche market, that is animal
banking ( i.e. rearing animals for certain fees or Adhyari). This would open up a new market.
Pakistan is fifth largest milk producing country but it lacks in organized farming. Pakistan have
to import powdered milk from various countries for meeting its domestic demand. We are
planning to add 5 animals per year as per our growth strategy. The milk pasturing unit is also
the core part of our growth strategy.
We will differentiate our business by providing Pure Milk, and Healthy Meat.

2. Financial Plan:
The total cost of the project is Rs. 5530500. Out of which capital cost of the project is Rs. 5270500 for
purchasing the animals and constructing the building and the rest is used to meet the working capital
requirement.

Project Cost:
Account Head
Land
Building/Infrastructure
Machinery & equipment
Animal Cost
Pre-operating costs5
Total Capital Cost
Raw material inventory
Cash
Working Capital Requirement (Rs)
Total Investment (Rs)

Total Cost (Rs)

600,000
1,545,500

55,000
30,00,000
70,000
5270500
80,000
1,80,000
2,60,000
5530500

The proposed pre-feasibility is based on the assumption of 65% debt and 35% equity. However this
composition of debt and equity can be changed as per the requirement of the investor.

Project Financing:

Debt
Equity
Total project Investment

65%
35%

3594825
1935675
5530500

Infrastructure cost Total:

Shed for Cows

Open Paddock for Cows
Shed for Buffaloes
Open Paddock for Buffaloes
Shed for Calves
Open Paddock for Calves
Shed for Calves (older than one year)
Open Paddock for Calves (older then one
year)
Stores for fodder, concentrate & machine
room

Utensils & milk storage

Servant Room, Wash room
total infrastructure cost

1,500
1,500
2,000
500
550
550
400
400

310
10
310
10
300
10
300
10

100
100
200

0
310
31000
310
31000
420
84000
1545500

465000
15000
620000
5000
165000
5500
120000
4000

Wage and Labor Cost:

Description
Farm Supervisor
Workers
Total Labor Cost

No.
1
3
4

Salary/month/Person
15,000
7,000

Annual Salary (Rs)

180,000
252,000
432,000

INCOME Statement for 3 years:

Year 1

Year 2

Year 3

Revenue
Cost of goods sold
Gross Profit

2,834,800
735,800
2,099,000

3,553,000
922,500
2,630,500

4,317,400
1,162,500
3,154,900

General administration & selling expenses

Administration expense
Office expenses (stationary, etc.)
Professional fees (legal, audit, etc.)
Depreciation expense
Amortization expense
Subtotal
Operating Income

432,000
8,640
12000
85861
20000
558,501
1,540,499

474,060
9,481
15000
85861
20000
604,402
2,026,098

520,215
10,404
18000
85861
20000
654,480
2,500,420

400342

398282

380120

Tax

261884.83 344436.66

425071.4

NET PROFIT/(LOSS) AFTER TAX

878,272

1,695,229

Interest expense

1,283,379

Balance Sheet for 1st year:

Assets
Current assets
Cash & Bank
Raw material inventory
Total Current Assets
Fixed assets
Land
Building/Infrastructure
Animals
Revaluation Surplus/ (loss)
Net value of animals
Machinery & equipment
Total Fixed Assets

Intangible assets
Pre-operation costs
Total Intangible Assets
TOTAL ASSETS

Liabilities
Long term liabilities
Stock holder's Equity
Paidup capital
Gain or loss
Retained earnings
Total equity

180,000
80,000
260,000
600,000
1,545,500
30,00,000
30,00,000
55,000
5,200,500

70,000
70,000
5,530,500

3594825

1935675

5530500

3. Marketing Plan:

*Market research:
Marketing has a direct impact on overall business success. Changing buyer
demands, local and global competition, and Marketing research is the main basic component
to start a new business as we have not much knowledge about the market and its other
componentes in that area so we have decided to search for that and where the market of
cattle care business is standing now, we also want to know about the cutomers, goods
suppliers and others who are linked with the business, for that we have plan to start our
resarch on customers, goods suppliers and market. Beacuase our team is too mush intersted
to know about all those facts about the market.
For our marketing research first of all we will visit many cattle care
centers to know about the environment of centers and daily tasks who have started
performance in cattle care center, the tools for the business and their qulaity we will also try
to know the experience of owners of cattle care centers in the business and what kind of
difficultuies they face and how they resolve them. We will also visit google to know about the
some world class cattle care centers that how they are going in their business and what are
their strategies about the market. If we talk about the customers the mostly customers of
cattle care centers are from dairy firms, they puchase dairy products from the cattle care
centers and then they convert those in their products, for the other product cattle care like
meat we will contact only incially with only dealers on eid ul azha festival.

*Products:
1. Pure Milk; at reasonable price, without injecting buffalos, No mixture of powder, chemicals
and water.
2. Meat; Freash and healthy meat (free of water use) , no sick animals, anyone can see the
animals before slattering.
3. Cattle care services; Feeding on time, reasonable charges, Full care of animals, neat and
clean enviroment.

*Promotion:
We shall use cable media, A tea party to especial and populor persons, and use of penaflex as
well and we shall invite local people to visit the place and enviroment. We can take 200,000
promotion cost.

*Pricing:
Pricing will be reasonable so that people can afford for quality producys and services. We shall
compare the prices with competitors, The price will be relatively high then competitors
because of best quality and services, and people will willingly pay the prices for quality. Local
customers will not have the credit policy but companies and restaurants will have the credit
facility.

*Place:
Our business place is near Naushahro Feroze on national highway, people can come easily,
with a wide interior area along with parking place, as customers required. And there is no
competitor near to our business.

*Customers:
Local people, Tea Hotels, restuarents, milk pack companies, icecream producers.
I.e: Nestle foods company.

*Competition:
Local dairy forms will be the competitiors. But we shall make our image so strong that our
customers will remain loyal to us.

4. SWOT Analysis:
Strengths:

Initially wide scope of milk production.

Important source of food. i.e: milk & meat.
Fresh meat and pure milk.
Quality cattle care service.
Vatenory medication.
Neat and clean enviroment for animals.
Reasonable price.
Market approach and transportation.

Weaknesses:

Hard climate of interior Sindh.

Limited market area initially.
No exports of products.
Lack of record maintainance.
Unawareness of basic farm managent practices.
Dairy farm management is challanging work.

Opportunities:

Very few dairy farms in Pakistan.

No any dairy farm in Naushahro Feroze bypass.
Always their is high demand of Milk.
On Eid-ul-Azha high demand of Healthy live stock with high rates.
High chances of growth.
High demand of value added dairy products.

Threats:

Security concerns.
Viral dieases in live stock.
Defective & unauthorized market.
Inbalance of prices of inputs and outputs.
Low saving.
Sudden death of live stock.
Fear of default.
Increasing cost of production and higher rate of interest.