PROJECT REPORT

FOR SHEEP FARM

<<<<>>>>
BHIMAPURA VILLAGE, NANDAGUDI HOBLI,
HOSKOTE TALUK
BANGALORE RURAL DISTRICT

ON

SHEEP BREEDING FARM

PROMOTING AGENCY

NANJUNDAPPA S/O CHIKKAPPAYYA

 CHAPTER-1

Project at a Glance
Name of the Promoter : Nanjundappa
Status : Proprietorship
Location : Katha No.85,
Site measuring 0.34 Acre
Bhimapura Village,
Nandagudi Hobli,
Hoskote Taluk,
Bangalore rural district.

Promoter : Mr Nanjundappa s/o Chikkappayya

Address : Bhimapura Village,
Nandagudi Hobli,
Hoskote Taluk,
Bangalore Rural District.

Activity/Crop : For Meat and Breeding purpose

Project Cost : Rs.12 lakhs
Source of Finance : Promoter contribution: Rs.3 lakhs
Term loan : Rs.9 lakhs
Total : Rs.12 lakhs
 NANJUNDAPPA SHEEP FARM
K.NO.85, BHIMAPURA VILLAGE, NANDAGUDI HOBLI,
HOSKOTE TALUK, BANGALORE RURAL DISTRICT

EXECETIVE SUMMARY
Mr Nanjundappa s/o Chikkappayya, resident of Bhimapura village,
Nandagudi hobli, Hoskote taluk, Bangalore rural district. He own agricultural
land and he propose to take up Sheep farming with Breeding and fattening of
sheep with other infrastructure as detailed in Annexure. The development
activities proposed are:-

a. Construction of building and civil structures like Sheep shed.

b. Purchase of Sheep stock for Breeding and for general purpose rearing.
c. Integrated Sheep farming.

The economies of the project with various investment and revenue cost
have been worked out. The key performance and financial indicators are
worked out, by way of cash flows, profitability statements.

The total capital and Farm Development Costs over 5 years worked out to
Rs.12 lakhs, loan portion of the project is Rs.9 lakhs, and promoter will bring in
Rs.3 lakhs additional capital by way of margin towards project cost.

CONCLUSION:-
Mr Nanjundappa s/o Chikkappayya, on project for integrated Sheep
form in K.No.85, site measuring 0.34 acre situated at Bhimapura
village, Nandagudi hobli, Hoskote taluk, Bangalore rural district.
 NANJUNDAPPA SHEEP FARM
K.NO.85, BHIMAPURA VILLAGE, NANDAGUDI HOBLI,
HOSKOTE TALUK, BANGALORE RURAL DISTRICT

1. INTRODUCTION:

Farm families in India constitute over thirds of the population. Families

possessing like land, livestock will have to be assisted to enhance the
productivity of their resource endowments in an environmentally and
economically sustainable basis. The smaller the holding, the greater is the
need for marketable surplus. Hence the highest emphasis has to be placed on
increasing output per unit of land, water, nutrients and labour based on
technologies which are ecologically and economically sound.

2. SHEEP FARMING:

It is only 11 Thousand years back that man may have domesticated an

animal and about 7000 years since she cultivated a food crop. Dog perhaps
the first of the animals befriended by man. Sheep and Goat were perhaps
domesticated soon after, apparently for food and to provide clothing for man.
Sheep is a versatile animal and perhaps among the most adaptable. It enjoys a
viable distribution right across the globe in almost all ecological niches and in
many settlements.

The sheep population in India has increased from 39.10 million to 65.10
million with annual growth rate of 9.07%. Rajasthan is the most populous
state in India for both sheep and goat.

Sheep with its multi-facet utility for wool, meat, milk, skins and manure,
form an important component of rural economy particularly in the arid, semi-
arid and mountainous areas of the country. It provides a dependable source of
income to the shepherds through sale of wool and animals. The advantages of
Sheep farming are:-
 a. Sheep do not need expensive buildings to house them and on the
other hand requires less labour than other kinds of livestock.
b. The foundation stocks are relatively cheap and the flock can be
multiples rapidly.
c. Sheep are economical converter of gross into meat and wool.
d. Sheep will eat varied kinds of plants compared to other kinds of
livestock. This makes them excellent weed destroyer.
e. Unlike goats, sheep hardly damage any tree.
f. The structure of their lips helps them to clean grains lost at harvest
time and thus convert waste feed into profitable products.
g. Mutton is one kind of meat towards which there is no prejudice by
any community in India and further development of superior breeds
for mutton production will have a great scope in the developing
economy of India.

3. PROJECT PROPOSAL

3.I OBJECTIVES:
The scheme is formulated with following objectives:-
 To adopt integrated farming for increasing farm level income
through Sheep farming.
 To produce superior quality sheep breeds to meet the farmers
needs for sheep farming through Breeding activity.
 To produce good quality sheep for quality mutton through
scientific rearing of sheep.

3.II PROJECT AND USES:

The project envisages establishing scientific Sheep farm for production
of Young Sheep for meat purpose, and sheep Breeding for commercial
purpose. The animals and their by products are in demand and they are
market oriented.
3.III PROJECT DETAILS:
Fencing: The farm is isolated and situated away from the village required
fencing to protect from wild animals, tress passers etc., all along boundary of
entire farm. The promoters purpose to erect barbed wire fencing with stone
pillars on 4 sides by Promoters own contribution.

Sheep unit: For better and effective utilization of vacant space available
on the farm. The former proposes for establishing Sheep farming activity with
Breeding stock of (50+4) and fattening stock of Sheep with construction of
shed. The details of outlay furnished in the project cost. It is proposed to have
tools, surface water tank for washing of animals and Fodder Cultivation for the
Sheep Unit.

Bore well: Bore well is existed with sufficient water to meet drinking
water requirement of Sheep.

Housing (Shed): The sole purpose of housing is to provide an animal:-

1. Protection from rain/sun or cold whenever it needs it.
2. Eating place – Where it will get food not spoiled by dirt/water etc.,
3. Comfortable and clean resting place – Unnecessary expenditure
on housing should be avoided, but it should the above mentioned
objectives.

Following sheds are proposed in the project the details of which are as
follows:-

 Rearing shed:- 5 ft wide × 10 ft long × 8 ft height / 2 sheep

 Breeding shed:- 6 ft wide × 10 ft long × 9 ft height / 2 sheep
 Shed for Bucks:- 8 ft wide × 10 ft long × 9 ft height / 2 bucks

The built up/covered area should provide enough space for an animal to
stand and eat some extra to set 10’*6’ space, inclusive of feeding manager is
recommended for each animal. The paddock should provide about 25 sq. ft
area per animal. The paddock as well as built up area should be well drained
so that there is no accumulation of excreta or water.
 Calving Sheds:- These are necessary for keeping down Pregnant Doe
(animals which are ready to calve) so that they would not be disturbed by
other animals and would be comfortably housed. The number of calving boxes
would depend on the strength of the herd.

Sick ward:-This may be necessary for isolating sick animals.

Shade net house:- This would be necessary to keep the animal under
shade during not sunny days. Various construction designs are available and
may chose according to suitability and requirement.

4. GENERAL MANAGEMENT ASPECTS

1) Maintenance of proper and detailed records.

2) Observation of social order/behaviour.
3) Vaccination programme
4) Any death, abortion on the farm should be thoroughly
investigated.
5) No animals should be added to the farm from outside unless it is
thoroughly checked from health angle.

5. TECHNICAL ASPECTS

A. BREED: Deccani sheep breed basically is a mixture of the woolly types of

Rajasthan and the hairy types of Andhra Pradesh, Telangana and Tamil Nadu
states. These Sheep are reared for both mutton and wool. The sheep breed is
small in size and hardy, and it is well suited in poor pastoral conditions and
possesses a coloured fleece, Grey and Black colours.
 B. FEEDING AND MANAGEMENT OF SHEEP:

1. The milk life of a Sheep is usually 10 years. The age at which first Bred
is 12 to 15 months.

Estrus Cycle : 17-210 days

Duration of heat : 1-2 days
Gestation : 140-155 days
Kidding Interval : 8-10 months
No. of Kids per Kidding : 1-3 kids
Lactation Period : 150-200 days

2. Colostrum’s should be fed at least for 3 to 5 days for 3 to 5 times a day.

And kids should be allowed to be with Doe (Female Sheep).
3. Breeding season spreads all over the year. Under good management
conditions, two pregnancies in a year are possible. Concentrate feed at the
rate of ¼ kg/day/animal for pregnant sheep to be provided.
4. Under stall fed local tree leaves such as Neem, Gross, Clover, Forbs and
other pasture plants etc., are fed at 4 to 5 kg/day/animal.
5. The Buck (male sheep) is at its best for stud purpose when it is at 2
years old.
6. Dry the pregnant Does at least 6 to 8 weeks before expected kidding.
They should be kept away from bucks and housed comfortably in pregnancy
stalls during advanced pregnancy stage.
7. Proper sanitary methods should b3e followed to prevent the spread of
diseases.
8. Generally Sheep live on grazing wild grasses, herbs and farm – waste
products. Over – ripe grasses are not relished by them. Therefore area should
have ample grazing facilities.
9. The common leguminous plants the leaves of which are relished by
Sheep are babul, oak, urd, kulthi, liucerne and classic legume leaves. In India, a
number of wild legumes grow in pastures.
6. TECHNICAL DETAILS:
Breed Deccani
Purpose For meet and Breeding
Gestation period 140-145 days
No. of Batch Two batch at interval of 5 months
Batch size 50+5 – General Rearing/Fattening Breeding
purpose
Housing Type Asbestos sheets roofed with wooden supported
housing, kidding, pen, hayrack – working shed
Feeding 4 per pasture grazing with supplement
concentrates at 300 gms per head day by
flushing method
Kid weaning 12 to 14 months of age (>25kg)
Breeding Hormonal treatment and Artificial insemination
– twin kids may be practiced.
Culling stage 2 years age of Doe
Mortality Adults- 5%
Kids- 15%
Technical assistance from Dept. of Veterinary and Govt. of Karnataka is
available.
7. ECONOMIC AND FINANCIAL ASPECTS:
Based on various techno-economic parameters of the project has been
worked out for the project period or till the repayment of the bank loan. The
items of income includes sale of young ones for mutton / breeding manure and
adult sheep while the expenditure include maintenance of Sheep farm, feed
costs, labour and maintenance of farm. The income and expenditure for each
year has been worked out.
Bank ability:
1. Project cost : Rs.12 lakhs
2. Term loan : Rs.09 lakhs
3. Margin : Rs.03 lakhs
4. Rate of Interest : 8.60%
5. Repayment period : 48 months
 ECONOMIC VIABILITY OF

NANJUNDAPPA SHEEP FARM

K.NO.85, BHIMAPURA VILLAGE, NANDAGUDI HOBLI,
HOSKOTE TALUK, BANGALORE RURAL DISTRICT

ANNEXURE – I
DETAILS OF CIVIL WORKS
1. LAND:
Site measuring 0.34 acre bearing Katha No. 85
Situated at Bhimapura village, Nandagudi hobli,
Hoskote taluk, Bangalore rural district. –Existing-

2. BUILDING (As per Plan and Estimate produced by Engineer)

Sheep rearing shed 30 × 82 feet
= 2460 sft. × 250 per sft. Rs.615000

-------------------
Total Rs.615000
-------------------

ANNEXURE- II

DETAILS OF MACHINERY AND EQUIPMENTS

a. Farm Tools and Equipment Rs.25000

b. Water Supply Rs.35000

------------------
Total Rs.60000
-------------------
 ANNEXURE – III

COST OF THE PROJECT AND MEANS OF FINANCE

A. Site measuring 0.34 Acre bearing V.P. Katha No. 85

Situated at Bhimapura village, Nandagudi hobli,
Hoskote taluk, Bangalore rural district -Existing-

B. Civil Works (Proposed) 6.15 lakhs

C. Cost of Plant and Machinery (proposed) 0.60 lakhs

D. Working capital 5.25 lakhs

--------------------
Total 12.00 lakhs
--------------------

MEANS OF FINANCE

a. Term loan from Bank 9.00 lakhs

b. Promoters share 3.00 lakhs

-------------------
Total 12.00 lakhs
-------------------

Sources of Income of Promoters contribution is brought from Agricultural

source.
 ANNEXURE – IV

WORKING CAPITAL REQUIREMENT

a. Cost of 50 Does at the rate of Rs.8000 per Doe 400000

b. Cost of 4 Bucks at the rate of Rs.8000 per Buck 32000
c. Medicine charges 5000
d. Insurance 4000
e. Concentrated feed for sheep 84000
----------------
Total 525000
----------------

ANNEXURE – V

MAN POWER REQUIREMENT

The following are the man power required for the proposed unit.

[ Rs. In lakhs]
Sl. No. Particulars Nos Per month Per annum
1. Skilled worker 1 0.08 0.96
2. Helper 1 0.06 0.72
Total 2 0.14 1.68

ANNEXURE – VI

ADMINISTRATIVE EXPENSES
The following are the administrative expenses required for the proposed unit.

[Rs. In lakhs]
Sl. No Particulars Amount
1. Electricity and Fuel 0.32
2. Travel and Transport 0.18
Total 0.50
 ANNEXURE – VII

WORKING CAPITAL REQUIRED

Green Fodder and Concentrates:-

Year Per day Per Month Per Year
st
1 Year Qty. (kg) Rate (Rs.) Amount
Does 50 3 3.5 525 15750 189000
Bucks 04 4 3.5 56 1680 20160

Total 209160

Year Per day Per Month Per Year

nd
2 Year Qty. (kg) Rate (Rs.) Amount
Does 100 3 3.5 1050 31500 378000
Bucks 08 4 3.5 112 3360 40320

Total 418320

Year Per day Per Month Per Year

rd
3 Year Qty. (kg) Rate (Rs.) Amount
Does 200 3 3.5 2100 63000 756000
Bucks 16 4 3.5 224 6720 80640

Total 836640

Year Per day Per Month Per Year

th
4 Year Qty. (kg) Rate (Rs.) Amount
Does 400 3 3.5 4200 126000 1512000
Bucks 32 4 3.5 448 13440 161280

Total 16732800

Year Per day Per Month Per Year

rd
3 Year Qty. (kg) Rate (Rs.) Amount
Does 500 3 3.5 5250 157500 1890000
Bucks 40 4 3.5 560 16800 201600

Total 2091600
 ANNEXURE – VIII

SALES REALIZATION STATEMENT

[Rs. In lakhs]
Year Age in Does Bucks Total Total
months No. Rate Amount No. Rate Amount No. Amount
st
1 8 45 10000 4.50 15 12000 1.80 60 6.30
12
18
30 *
45 4.50 15 1.80 60 6.30

2nd 8 45 10000 4.50 15 12000 1.80 60 6.30

12 45 10000 4.50 20 12000 2.40 65 6.90
18
30
90 9.00 35 4.20 125 13.20

3rd 8 45 10000 4.50 15 12000 1.80 60 6.30

12 45 10000 4.50 20 12000 2.40 65 6.90
18 45 10000 4.50 20 12000 2.40 65 6.90
30
135 13.50 55 6.60 190 20.10

4th 8 45 10000 4.50 15 12000 1.80 60 6.30

12 45 10000 4.50 20 12000 2.40 65 6.90
18 45 10000 4.50 20 12000 2.40 65 6.90
30 45 10000 4.50 20 12000 2.40 65 6.90

180 18.00 75 9.00 255 27.00

 ANNEXURE – IX

DEPRECIATION CHART

1. Cost of the Building Rs.6.15 lakhs

2. Dep. On Building @10% P.A
3. Cost of Machinery and Equipment Rs.0.60 lakhs
4. Dep. On Machinery and Equipment @10% P.A

Year Dep. On Building @ 10% Dep. On Machinery @ 10% Total

Op. bal Dep. Clo. Bal Op. bal Dep. Clo. Bal
I 6.15 0.62 5.53 0.60 0.06 0.54 0.68
II 5.53 0.56 4.97 0.54 0.05 0.49 0.61
III 4.97 0.50 4.47 0.49 0.05 0.44 0.55
IV 4.47 0.45 4.02 0.44 0.04 0.40 0.49
V 4.02 0.40 3.62 0.40 0.04 0.36 0.44

ANNEXURE – X

LONG TERM LOAN AND WC REPAYMENT SCHEDULE

1. Loan Amount :: Rs.9 lakhs

2. Rate of Interest :: 8.60%
3. No. of Years :: 5 Years

Year Opening Principal Interest Total Closing

balance Repayment Payment balance
I 900000 196955 69757 266712 703045
II 703045 214577 52135 266712 488468
III 488468 233776 32936 266712 254692
IV 254692 254692 12020 266713 0
 ANNEXURE – XI

COST OF THE PRODUCTION AND PROFITABILITY STATEMENT

[Rs. In lakhs]
Sl.No. Particulars I II III IV V
A Installed Capacity 100% 100% 100% 100% 100%
B Sales Revenue 6.30 13.20 20.10 27 35
Total 6.30 13.20 20.10 27 35
C Cost of Production
1 Raw materials 1.60 3.80 7.60 12.10 15.50
2 Depreciation on WDV 0.68 0.61 0.55 0.49 0.44
3 Int. on long TL&WC 8.60% 0.70 0.52 0.33 0.12 0.07
Total 2.98 4.93 8.48 12.71 16.01
Profit 3.32 8.27 11.62 14.29 18.99

ANNEXURE – XII

CASHFLOW STATEMENT
Sl.No. Particulars POP I II III IV V
A Sources of Funds
1 Profit before taxes - 3.32 8.27 11.62 14.29 18.99
2 Depreciation - 0.68 0.61 0.55 0.49 0.44
3 Term loan 9.00
4 Promoters contribution 3.00
Total 12.00 4.00 8.88 12.17 14.78 19.43

ANNEXURE – XIII

DEBT SERVICE COVERAGE RATIO

Sl. No. Particulars I II III IV V
1 Net cash accruals 3.32 8.27 11.62 14.29 18.99
2 Int. on Term Loan 0.70 0.52 0.33 0.12 0.07
Total (1+2) 4.02 8.79 11.95 14.41 19.06
3 Sum of Int. and Instalments 2.67 2.67 2.67 2.67 2.67

Cumulative D.S.C.R= Cum A 58.23

Cum B 13.35 = 4.36%
 ANNEXURE – XIV

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