Milk – The white gold

To establish an integrated dairy farm known

for its purity and quality of dairy products
Chitale daiy farm (Maharashtra)
Rajpura diary farm (Punjab)
Rajnandgaon dairy farm (Chhattisgarh)

Huge dairy farms in Israel, Australia and

Newzealand
Dairy farming Milk
collection &
& Production
Processing

Our focus area Other’s

A total of 50 animals on the farm
Shed of 100 animals
22 bigha farm on main Jaipur-Ajmer
expressway with 300 ft. highway frontage
Supplying raw milk locally - wholesale
Total capital invested = 6 cr. + Lot of sweat
equity!!!
Capital required for expansion to 1000
animals = 6 cr.
Milk and dairy products produced at the farm itself
Superior quality control
Consumer trustworthiness
Premium for the product

None of the established dairies in the country have milk

exclusively from one particular farm
Can’t guarantee pure cow milk/products
Quality control starts after milk from all sources
is collected and mixed
Can’t produce organic milk
Infact, most of the processing plants have
unhygienic
conditions
Unmatched demand of milk in NCR
Pricing – Fat content/fixed value – 16 Rs./liter
No botheration of sales – Milk container filled
at the farm itself
Profit/liter = 8 Rs./liter (approx.)
Expected project returns – 18-24% per annum
over 12 cr.
Unorganized market for farm fresh milk
Health conscious consumer – Farm fresh milk
has more nutritive value
1st mover advantage
Positive response from the survey conducted
Marketing and sales expenses
Need to establish dealer network and supply
chain
 Fatless cow milk – 22 Rs./liter
 Fresh cow milk – 25 Rs./liter
Milk value realization: 20-21 Rs./liter
Expected project returns: 27-36% per annum
over 12 cr.
Installing a processing and packaging unit
Easier transportation of products
Establishment of a national brand
Certification from agencies
Higher value realized for products in NCR &
other high end markets
Expected returns – Above 35%
Strong demand in middle east, south east asia
and other countries with land-labor issues
Need to establish a worldwide brand
Certifications required from international
agencies
Expected returns – Above 40%
 Good animal selection procedures
 High yielding cows at reasonable price
 Breeding program
 Regular lactation cycle
 More number of female calfs
 Proactive animal health care
 Low calf mortality rate
 Minimization of productivity loss due to diseases
 Feed management
 Balanced feed at all times in lactation cycle
 Computerized data keeping
 Analysis of animal milk yield, heat detection,
disease symptoms, overall animal pedigree
Initially 10,000 lpd from 1000 cows
Culling of 10% herd each year
40-75% female calf into young heifers after
2.5-3 years
Exponentially increasing herd size after 3
years
 3rd year – 1300-1500 cows
 4th year – 1800-2000 cows
 5th year – 2300-2500 cows
…
Expense Per unit cost Total expense

1000 cows + 2.5% insurance 40000/- 4.0 cr.

4 cow sheds and 1 hiefer 16,000,00/- 0.80 cr.

section
Feed warehouse 20,000,00/- 0.20 cr.

Milking parlour 50,000,00/- 0.50 cr.

TMR wagon 15,000,00/- 0.15 cr.

Tractor, herd management 20,000,00/- 0.20 cr.

software, RO plant etc.
Bio gas plant 15,000,00/- 0.15 cr.

Total 6.0 cr.

3,00,000 liters per month production@ 16
Rs./liter = 48 lakh/month
Feed cost/animal per day = 75 Rs.
 Monthly feed cost = 22.5 lakh
Medical expenses/animal/month = 150 Rs.
 Monthly medical expense = 1.5 lakh
Fixed costs: Salaries, electricity, maintenance,
fuel etc.
 Monthly fixed costs = 4 lakh
Total costs = 28 lakh/month
Net cash inflow = 20 lakh/month
 Ever increasing demand of milk due to increasing
population
 Minimum external impact
 No impact of economic cycles or downturns – Milk would
be required in worst economic conditions as well
 No impact of Political environment – Milk would needed
during war also
 No impact of catastrophic disasters – Milk needed then as
well
 Provides diversification across all investment classes
 High returns & high liquidity
 Once established, guaranteed lifetime income
 No impact of inflation on profitability
 As inflation increases, dairies pass on the cost increase to
the consumers
Livestock covered by insurance – minimal risk
Further diversification with various product
range
Diversified markets - Local, national and
international markets
Easiest option of supplying to other dairies
always open
Returns 20-40%
Risks Covered by insurance
Liquidity Daily/weekly cashflow
Capital Over 6 months
deployment
Returns starting Day the cattle is procured
Diversification Low correlation with other investment options
Excreta management
 Cow urine: Being used as a pesticide and in
ayurvedic medicines
 Cow dung:
Generation of bio-gas
Slurry from bio-gas plant being used as fertilizer
Vermicompost being made from cow dung
Kanpur gaushala society is buying cow dung
for Rs. 3/kg and cow urine for Rs. 5/liter
Additional income of 10-15%
2000 existing trees on the farm
10,000 more trees would be planted for
cooling the micro-climate
Additional carbon credits from
 Conversion of methane & CO2 generating cow
dung into bio-gas and slurry
 Electricity generation from bio-gas generator
Minimizing cattle feed costs by cultivating
fodder
Agriculture income is tax free
Modern and integrated organic farm on main
NH8 – Busiest highway in India
Company’s flagship store on main
expressway – A symbol of pride and a medium
for national / international branding
 Falls on the tourist belt due to Ajmer/ Gujarat
 Jaipur a popular international tourist center
Potential of opening an organic village for
tourists
Potential of starting an educational institute
focusing on agri-preneurship
 Mr. Madhur Singhal
(B.Tech, M.Tech – Comp. Sc. –
IIT Delhi)
(FRM, CFA level II)

Mr. Ghanshyam Singhal

(B.E. Elec. - BITS Ranchi)
Singhal Exports, Jaipur
Residency

Contact : jakondairy@in.com, +91-