Animal Feed Mill
Animal Feed Mill
Animal Feed Mill
Department1of Commerce
Anmol Animal Feed Mill
A Project on:
Submitted To:
Submitted By:
Muhammad Zeeshan 15
Muhammad Danish 44
Muhammad Mushtaq 52
Submitted To:
Department2of Commerce
Anmol Animal Feed Mill
Department3of Commerce
Anmol Animal Feed Mill
1 Preface 5
2 Dedications 6
3 Acknowledgement 7
4 Executive Summary: 8
5 Company Profile 9
a. Address of Company
b. Location of Project
c. Product Range Mix
d. Installed Capacity
e. Capacity achieved
6 Estimated Cost of Project 12
f. Fixed Cost
g. Initial Working Capital
7 Means of Finance 12
8 Names of Financiers 13
9 Names of Civil Contractor 14
10 Names of Machinery Suppliers 14
11 Machinery Detail 15
12 Machinery 16
13 Implementation Schedule 17
14 SWOT Analysis 18
15 Market Analysis 19
16 Technical Analysis 20
17 Personnel Analysis 21
18 Financial Analysis 22
19 Schedule of Cost of Project 25
20 Assumptions 26
21 Project Return and Ratios, Means of Finance 27
22 Project Visit Highlights 28
23 End words 33
Department4of Commerce
Anmol Animal Feed Mill
Being aware of the importance of practical implementation of any newly established project,
the Department of Commerce (IUB) requires every M.Com student having specialization
in finance to go through feasibility of any project.
The purpose of the project feasibility is to broaden the vision of practical experiences with
theoretical knowledge as it increases one’s capabilities to handle problems at various stages
and the ability of decision.
We have tried our best to collect the valuable information and its relevant facts regarding the
animal’s food mill plant. We also have visited the plant working at Okara (Bahadar Nagar) and
Pattoki Natthey Stop for making our project reliable and successful.
This project concerning with animal food production namely “ANMOL ANIMAL FEED
MILL”.
GROUP NO. 08
Muhammad Zeshan
Muhammad Danish
Muhammad Mushtaq
Department5of Commerce
Anmol Animal Feed Mill
Department6of Commerce
Anmol Animal Feed Mill
C
ell# 0322-6978878
Livestock Research Center Okara (Bahadur Nagar)
of the Research Center Okara Animal Feed Mill, who gives us his precious time and valuable
information for doing this project. We are also thankful to other staff members of Research
Center Okara Animal Feed Mill for their cooperation & kindness; Mr.Dr.Akbar Buzdar who
helped us and polish our knowledge for animal feed unit.
We cannot forget the kindness & cooperation of Mr. Muhammad Ahmed we are very thankful
to them for their guidance & support.
Department7of Commerce
Anmol Animal Feed Mill
Animal feed industry is broadly classified in two main categories viz. (i) cattle feed
industry and (ii) poultry feed industry. While the former has not yet developed to any sizeable
extent the latter has expanded in an organized fashion.
Livestock production is an integral part of Pakistan's agriculture sector and plays a vital
role in national economy. At present, livestock is contributing about 52% to the agricultural
sector and 10.9% to the GDP. The role of livestock in rural economy may be Assessed by the
fact that 30 to 35 million of the total rural population is engaged in livestock farming, having 2
to 3 cattle/buffalo and 5 to 6 sheep/goats per family deriving 30 to 40 per cent of income from
it.
At present, Pakistan has 215 feed mills, but only few are preparing compound feed for
Livestock. Generally, mixed compound feeds are prepared at home by farmers. Feed accounts
for almost 70% of total cost of production of milk or meat. Hence a balanced feed will
positively affect milk and meat production of livestock
Anmol Animal feed Mill is designed with a wide range of processing capacity and product mix
depending upon the demand, according to availability of feedstuffs and their storage capacity.
However, it is suggested that the viable economic unit should have a capacity of preparing 5
ton of Anmol Rashon per hour.
Some of the poultry feed mills, which have the requisite machinery and equipment also,
occasionally produce cattle feed. But the total quantity thus produced is very small. It is
estimated at 5,000 to 6,000 tonnes per annum and is consumed locally in its ignorance of
livestock owners about the utility of concentrated feeds and therefore they resort to cheaper
conventional feedstuffs. Moreover, the livestock population is scattered in small flocks over
vast areas making its commercial distribution a difficult job.
Department8of Commerce
Anmol Animal Feed Mill
Address of Company:
Head Office of Anmol Animal Feed Mill is Located in the heart of Bahawalpur city which is
easily approachable by key regions of Punjab.
The processing unit is located in district Lodhran near Main Permut By-Pass 1 Km at Jalal pur
pir wala Road
Unit is producing three basic types of “Anmol Rashon” for different categories of Animal
i.e.
• Anmol Wanda for Milky Animal
Department9of Commerce
Anmol Animal Feed Mill
Department10of Commerce
Anmol Animal Feed Mill
Installed capacity of our processing unit is 100 percent, which is 60 tonns per day
Currently the unit is achieving the capacity of 70 percent, which is 40 tonns per day
Department11of Commerce
Anmol Animal Feed Mill
Equity 61%
Debt 39% MCB
Department12of Commerce
Anmol Animal Feed Mill
Department13of Commerce
Anmol Animal Feed Mill
Department14of Commerce
Anmol Animal Feed Mill
Website: http://www.amandus-kahl-group.de/
• Acemo, 30 rue Albert de Mun BP 50, 56302 Pontivy Cedex, France.
Telephone: + 33 2 97 25 05 30
Fax: + 33 2 97 27 84 60
Website: http://www.acemo.fr
Department15of Commerce
Anmol Animal Feed Mill
Implementation Schedule
Department16of Commerce
Anmol Animal Feed Mill
10 Trial Runs: 2010
Strengths
• Investment in dairy and livestock sector is increasing day by day and quality feed
is a pre-requisite in profitable dairy and livestock farming.
• Feed Processing Unit establishing according to modern techniques with proper
utilization of locally available cheaper feedstuffs leads to success in dairy and livestock
farming hence for feed business too.
Weaknesses
• Limited availability of protein sources of standard quality due to low or limited
production, processing technology, variable composition and adulteration.
• Comparatively poor nutrient composition of home-grown feed ingredients due to
differences in varieties and use of improper soil fertilizers.
• Improper use of pesticides, the residues of which result in poor feed utilization.
• Lack of proper storage facility. Due to this fact various agricultural products when
produced under quite high moisture content, thus liable to be affected with insect
damage, auto-oxidation and fungal contamination.
• Lack of nutritional data of indigenous feed ingredients particularly for amino acids,
energy, vitamins, minerals and by pass protein value especially in high producing
cattle/buffalo.
• Improper storage, transfer, grading, feed milling and mixing of feed ingredients may
also affect the quality of feed.
Opportunities
• The annual growth rate in livestock population of Pakistan was 3.8 percent (Economic
Survey of Pakistan, 2007-08) due to which there is demand for compound feed. The
increased productivity would require better feed utilization and increase in overall feed
availability both from fodder crops and formulated compound feed.
• The agro industrial by products can be better utilized in formulated compound feed.
• In order to meet the rapidly increasing demand for the various kinds of livestock
products (Milk & meats), the better rations with improved feed formula are needed to
get more meat and milk, for the same feed supplies. By increasing livestock numbers,
rather than their average weight, the feed requirements are much larger.
Department17of Commerce
Anmol Animal Feed Mill
Threats
• Implementation of WTO. Open and competitive commodity pricing
• There is no feed ingredient quality control program as improper storage, transfer,
grading, feed milling and mixing of feed ingredients may also affect the quality of feed.
• The prices of different feedstuffs vary through out the year. Improper storage of raw
material can affect its nutritional value.
• There is limited availability of protein sources of standard quality due to low or static
production, processing technology, variable composition and adulteration.
• Lack of awareness among dairy and livestock farmers to use compound feed for the
high production of their animals is a constant threat for feed mill business as well.
Demand & Supply Conditions for last five years of Live stock Product:
Livestock plays an important role in the economy of the country and the livelihood of people.
Livestock accounts for 52.2 percent of agriculture value added and 10.9 percent of national
GDP. It is a net source of foreign exchange earnings, constituting more than 8.5 % of the total
exports. It is an important source of raw material particularly for leather, carpet and woolen
cloth industries. Livestock is raised by more than 8.5 million small and landless families in the
rural areas and is their main livelihood source. It is a form of social security for the poor, who
cash it at the time of need and it also serves as security against crop failure in barani (rain-fed)
areas. Dairy sector is an important component of Pakistan’s economy. The value of milk alone
exceeds the combined value of wheat, rice, maize and sugarcane in the country. Livestock
produces 34.064 million tons of milk, making Pakistan 4th largest producer of milk in the
world.
Target Market:
The target markets of our project national market. Initially we will sell our product to target
region of Multan, Bahawalpur, Lodhran, Vihari, Mailsi, Bahawalnagar and Rahim yar khan.
Role of Live Stock in Economy:
In Punjab, the nutritional requirements are mainly met through fodder crops, shrubs,
grasses, and agro industrial wastes. Punjab produces about 45 million tonnes of fodder from
Department18of Commerce
Anmol Animal Feed Mill
2.03 million hectares of land with an average yield of 22 tonnes/ha (Younas and Yaqoob,
2005). The existing available feed resources can only fulfill the maintenance requirements of
animals.
Improving the quantity and quality of feeds could substantially enhance livestock production
from the existing genetic pool of animals. The gap between the requirement and availability of
nutrients could be minimized both through proper fodder research and extension policies in
terms of better quality seed, seed rate and improved agronomic practices. The National
Commission on Agriculture (NCA) 1988 suggested that "if all animals in milk receive full diet
which meets their daily appetite without changing the feed mix i.e. maintaining the present
poor nutritional requirement balance, this alone could increase milk yield by 100 per cent."
Major machinery of Anmol Animal Feed Mill is brought from Germany and France. But we
have also acquired the local machinery which is easily available and economical in Pakistan.
Hooper Elevator and Grinding Machine, Motors,
Department19of Commerce
Anmol Animal Feed Mill
8 Molasses Pump 1
9 Fan Low pressure 5
130,776,52 149,783,47
Cost of Sales 122,217,540 5 139,954,078 1 160,312,424
35,435,47 38,590,12
Gross Profit 24,748,860 5 37,338,722 9 39,141,976
Department21of Commerce
Anmol Animal Feed Mill
Ratio
Current assets
7,981,61 12,938,0 12,116,2 13,215,8 12,668,6
Cash 500,000 6 31 50 59 17
Account 14,696,6 16,621,2 17,729,2 18,837,3 19,945,4
Receivable 40 00 80 60 40
Raw material 11,403,50 12,218,0 13,032,5 13,847,1 14,661,6 15,394,7
Inventory 4 40 76 12 48 30
Finished goods
inventory 452,658 534,587 572,343 612,767 656,057
12,670,6 12,656,0 13,600,1 12,180,0 11,985,8
Stores and spares 98 72 63 77 52
Total 11,903,5 48,019,6 55,782,4 57,865,1 59,507,7 60,650,6
04 52 66 48 11 96
Fixed Assets
Land and Building 5,651,000 5,161,00 4,644,90 4,131,41 3,617,65 3,103,93
0 0 0 9 4
Plant and 4,250,000 3,825,00 3,442,50 3,017,50 2,592,50 2,167,50
Machinery 0 0 0 0 0
Furniture and 75,000 71,250 67,688 64,116 60,544 56,973
Fixture
Vehicles 850,000 765,000 688,500 611,150 533,885 456,612
Pre-operating 2,832,666 2,592,66 2,352,66 2,112,66 1,872,66 1,632,66
Expense 6 6 6 6 6
Total 13,658,6 12,414,9 11,196,2 9,936,84 8,677,25 7,417,68
66 16 53 1 4 4
Total Assets 25,562,1 60,434,5 66,978,7 67,801,9 68,184,9 68,068,3
70 67 20 89 65 80
Liabilities and Owner’s equity
Current
liabilities
Account Payable 22,807,0 24,436,0 26,065,1 27,694,2 29,323,2
08 80 52 24 96
Tax payable
Long term loan 10,000,00 8,000,00 6,000,00 4,000,00 2,000,00 0
0 0 0 0 0
Equity
Capital 15,562,17 15,562,1 15,562,1 15,562,1 15,562,1 15,562,1
0 70 70 70 70 70
Net Profit 14,065,3 20,980,4 22,174,6 22,928,5 23,182,9
Total
Department
25,562,1
of Commerce
89 22
60,434,5 66,978,7
69 68
67,801,9
71
68,184,9
15
68,068,3
70 67 19 89 65 81
Anmol Animal Feed Mill
Department23of Commerce
Anmol Animal Feed Mill
Application
11,403,50 12,218,04 13,032,57 13,847,11 14,661,64 15,394,73
Raw material inventory 4 0 6 2 8 0
Department24of Commerce
Anmol Animal Feed Mill
Cost of Sales
Operating Cost
227040
Administrative expense 2064000 0 2497440 2747184 3021902.4
23094.6187
Electricity 19000 19950 20947.5 21994.875 5
3571.87 3571.4062 3571.42968
Depreciation of furniture 3750 3562.5 5 5 8
Department25of Commerce
Anmol Animal Feed Mill
14 KEY ASSUMPTION
Department26of Commerce
Anmol Animal Feed Mill
OPERATING ASSUMPTIONS
Working days in a year 300
Shifts Operational 1
Hours per shift 8
Initial year Capacity utilization 70%
Production Capacity (Tons per Annum) 5
Annual Production Capacity (Tons) 12,000
Capacity Utilization growth rate 5%
Maximum Capacity utilization 95%
REVENUE ASSUMPTIONS
Sales Price per 40 kg (Animal Feed Mill) 800
Sales Price growth rate 5%
Department27of Commerce
Anmol Animal Feed Mill
Operating Assumptions
Telephone and Telex (per month) Rs. 3,000 3000
Administrative Expense growth rate 10% 10%
Printing and Stationery (per month) Rs. 2,000 200
Legal & professional charges (annual) Rs. 10,000 1000
Traveling & conveyance (per month) Rs. 5,000 5000
Marketing and Promotional Expenditures Rs. 5,000 5000
Amortization of pre-operating expenses yrs. 5 5
Tax rate 25% 25%
Department28of Commerce
Anmol Animal Feed Mill
Department29of Commerce
Anmol Animal Feed Mill
Department30of Commerce
Anmol Animal Feed Mill
Department31of Commerce
Anmol Animal Feed Mill
Department32of Commerce
Anmol Animal Feed Mill
Department33of Commerce
Anmol Animal Feed Mill
Department34of Commerce