Detailed Project Report

on
Commercial Dairy Farming – Bank Finance (10 Cows)
Under MKUY

Name of the Entrepreneur/Entity:

Address:
Contents
1. Project Summary..................................................................................................................... 2
2. Project Profile .......................................................................................................................... 3
2.1 Entrepreneur/Entity Profile................................................................................................... 3
2.2. Project Consultant Details .................................................................................................. 4
2.3. Concept and Scope of the Project ..................................................................................... 5
3. Techno-commercial Assumptions ......................................................................................... 6
1. Financial Details ...................................................................................................................... 8
4.1. Project Fixed Capital ........................................................................................................... 8
4.2. Project Variable Expenses ................................................................................................. 9
4.3. Details of Sales.................................................................................................................... 9
4.4. Project Balance Sheet ...................................................................................................... 10
4.5. Calculation of Depreciation............................................................................................... 11
4.6. Projected P&L .................................................................................................................... 11
4.7. Projected Cash Flow ......................................................................................................... 12
4.8. Projected Loan Repayment .............................................................................................. 12
4.9. Calculation of DSCR, IRR and BEP ............................................................................ 13
4.10. Summary of Project Cost ................................................................................................ 14

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1. Project Summary
1 Name of the Enterprise Commercial Dairy Farming
(as per the Illustrative List of Enterprises) (10 Cows)
2 Sector AH&VS
(as per the Illustrative List of Enterprises)
3 Project Capacity1 60 lit. Milk per day
4 Key components of the project Dairy farming and milk selling
5 Project Address
(Village/Ward, Gram Pranchayat/Municipality,
Block, District)
6 Products/Output from the project Milk
7 Total Project Cost Rs. 15,27,350
8 Fixed Capital Cost Rs. 15,08,750
9 Working/Recurring capital Rs. 18,600
10 Bank Finance/ Self Finance Bank Loan
11 Bank Loan Amount Rs. 10,71,005
12 Promoter Contribution (min 10% in case of bank Rs. 4,56,345
loan)
13 Assumed Rate of Interest 11%
14 Subsidy Eligibility (40%, 50%)
15 Repayment Terms Equal Monthly Instalment
(Tenure, Moratorium, Frequency, Mode of
Repayment: equal principal/equal instalment)
16 Key Financial Indicators:
1. Average Annual Net Profit Rs. 4,63,782
2. Debt Service Coverage Ratio (DSCR) 2.43
3. Internal Rate of Return 23.24%
4. Break Even Point (BEP)/Year 3 Year 9 Month
17 Estimated employment to be generated (nos.) 2

Note: The price quoted in the DPR is indicative. Final CIS will be calculated as per the
Rate in MKUY guideline.

1
Capacity can be in terms of area or quantity
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2. Project Profile
2.1 Entrepreneur/Entity Profile
1 Name of the Entrepreneur/Entity
2 Legal status
(Individual/ Group/ FPO/ FPC/ Proprietorship/
Partnership firm/ Company/ Cooperative/
Federation/ Society/ Trust)
3 Name of Representative2 in Ease of entity
4 Gender (Male/ Female/ Third Gender/ Not
Applicable)
5 Date of Birth of Individual/Representative of
Entity
6 Date of Incorporation/Registration of Entity
7 Category opted for
(Women/ ST/ SC/ Differently Abled/ Third
gender/ Agri & Allied Graduate)
8 Educational Qualification of
Individual/Representative of Entity
9 Passport size photograph of the Individual/
Representative of entity

10 Local Address for Correspondence of the

Individual/ Representative of entity
11 Registered Address of Entity
12 Main Office/Branch Address of Entity
13 Phone no. of Individual/Representative of Entity
14 Email Id of Individual/Representative of Entity
15 AADHAR No. of Individual/Representative
16 PAN of Individual/Representative of Entity, if
available
17 Farmer Id of Individual, if available
18 Details of other Partner/Director/
President/Secretary
19 Registration No./ CIN of the Entity3
20 PAN/TAN of Entity
21 GSTIN of Entity, if available
22 Details of experience and exposure relevant to
the proposed enterprise/project
(family business, work experience, e-
learning/certificate courses, trainings
undertaken etc.)

2
Representative should be authorized by the board/governing body of the entity.
3
Registration document:
Groups (SHG/PG/: FPO: Proprietorship firm: Registration Certificate under Shops & Establishment
Act, Partnership firm: Registration Certificate from IGR of state, Company (Pvt. Ltd., Public Ltd.,
LLP, OPC, FPC): Certification of Incorporation, Cooperative/ Federation: Certificate of Registration
from Registrar of Cooperative Societies, Sciety/Trust: Darpan Unique Id
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2.2. Project Consultant Details

DPR prepared by: APICOL

Please provide further details of the consultant:

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2.3. Concept and Scope of the Project
Dairy farming from being a traditional family run business, today has grown hugely to an
organized dairy industry with technological specializations in every part of the process. There
has been tremendous growth in dairy farming sector in terms of technological advancement
that help the modern dairy farms to manage thousands of dairy cows and buffaloes.

The scope of dairy farming in Odisha is considerable due to the state's agrarian economy,
growing population, and increasing demand for dairy products. Dairy farming has the potential
to significantly contribute to rural livelihoods, nutritional security, and overall economic
development in Odisha. Dairy farming involves the rearing of dairy animals, primarily cows and
buffaloes, to produce milk and its by-products. India has a diverse and vibrant dairy sector that
plays a crucial role in providing livelihoods to millions of rural households and contributing to
the country's economy.

Scope of Dairy farming in Odisha

1. Rural Livelihood Generation

Dairy farming can play a vital role in generating livelihoods for rural households in Odisha. The
state has a substantial rural population, and dairy farming offers an opportunity for small and
marginal farmers to diversify their income sources and improve their economic conditions.

2. Nutritional Security

Dairy products are rich sources of essential nutrients like protein, calcium, and vitamins.
Promoting dairy farming in Odisha can contribute to improving the nutritional intake of its
residents, especially women and children.

3. Employment Opportunities

Dairy farming can create direct and indirect employment opportunities. From animal care and
milking to transportation and milk processing, there are various stages of the dairy value chain
that require a workforce.

4. Economic Contribution

The dairy sector can contribute to Odisha's economy by providing a steady income source for
farmers, reducing rural-urban migration, and enhancing the overall GDP of the state.

5. Poverty Alleviation

Dairy farming has the potential to uplift marginalized communities by offering them a means of
income generation. It can help in reducing poverty and improving the standard of living for
many families.

6. Value Addition and Processing

Besides raw milk production, dairy farming also provides opportunities for value addition
through milk processing. Value-added dairy products, such as flavored milk, yogurt, and

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 cheese, have a higher market value. Dairy farmers can capitalize on these opportunities by
processing raw milk into various products.

7. Women Empowerment

Women in Odisha, like in many parts of India, are actively involved in dairy-related activities.
Promoting dairy farming can empower women by offering them income-generating
opportunities and increasing their decision-making roles.

8. Sustainable Agriculture

Dairy farming can be integrated into existing farming systems, contributing to sustainable
agricultural practices. Manure from dairy animals can be used as organic fertilizer, enhancing
soil health and crop yields.

Market Potential

Urbanization leads to changes in dietary habits, with an increased demand for processed and
value-added dairy products. Urban areas provide a ready market for dairy products, including
fresh milk, yogurt, cheese, and more. Dairy products are an essential source of nutrition,
especially proteins and calcium. As awareness about health and nutrition increases, the
demand for dairy products is likely to rise.

Export Potential: With proper quality control and adherence to international standards, dairy
products from Odisha could have export potential, contributing to the state's economic growth.

Dairy Cooperatives and Organizations: Dairy cooperatives and organizations play a crucial
role in organizing farmers, ensuring fair prices, and facilitating market linkages.

3. Techno-commercial Assumptions
Sl. No. Parameter Value Unit
1 Increase in selling price of milk per annum 5 %
Increase in price of electricity, medicine, veterinary aid and feed
2 per annum 2 %
3 Collection from Debtors (First Year) 10 Days
4 Collection from Debtors 10 Days
5 Payable to Creditors 15 Days
6 Drawing By Promoter 30 %
7 Increase in Staff Salary 5 %
8 Rate of Interest on TL 11 %
9 Rate of Interest on WC 9 %
10 Loan Repayment (in year) 7 Years
11 Raw Material in Stock (on sales) 15 Days
12 Finished Goods in stock (on sales) 0 Days
13 Promoter's Contribution (Term Loan) 30 %
14 Promoter's Contribution (Working Capital) 20 %
15 Working Capital Requirement 15 Days
17 Working Capital Utilisation 100 %
18 Cost of land development (LS) 20000 Rs.

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Sl. No. Parameter Value Unit
19 Cost of fencing (LS) 40000 Rs.
20 Cost of shed construction/sq.ft. 450 Rs.
Cost of office cum storeroom construction / sq.ft. (RCC
21 structure) 650 Rs.
Borewell / Tube well with pump, pipeline, overhead tank and
22 fitments 110000 Rs.
23 Cost per cow including transportation 65000 Rs.
24 Cost of culled animals/Culled animal 10000 Rs.
25 Cost of electrification (as % of civil cost) 3 %
26 Cost of equipment / Animal 1000 Rs.
27 Cost of Milking Machine, Chaff cutter & other Misc. 40000 Rs.
Cost of Concentrate feed per animal per day during lactation
28 period 135 Rs
29 Cost of Concentrate feed per animal per day during dry period 54 Rs
30 Cost of medicine and veterinary aid/ animal/year 2000 Rs.
31 Quantity of conc. Feed/Bag 50 Kg
32 Cost of dry fodder per animal per day during lactation period 25 Rs
33 Cost of dry fodder per animal per day during dry period 25 Rs
Own
34 Cost of green fodder/kg grown
35 Cost of fodder cultivation/ Acre 12000 Rs.
36 Fodder Cultivation 1 Acre
37 No of animals 10 No
38 No of animals/batch 5 No
39 Quantity of conc. Feed/Bag in Kg 50 Kg
40 Average milk yield (ltr/day) 12 Ltr
41 Floor space (sq.ft/adult animal) 60 Sq.Ft
42 Floor space(sq.ft/calf) 20 Sq.Ft
43 Office cum Storeroom 300 Sq.Ft
44 Insurance premium/annum 7.5 %
45 Selling price of milk 36 Rs./lit
46 Sale price of gunny Bag 5 Rs./bag
Used in
fodder
47 Sale price of Manure/Tonne cultivation
48 Lactation days for first batch 300 Days
49 Lactation days for second batch 180 Days
50 Dry days 65 Days

FEEDING SCHEDULE
Lactation Dry
Type of Feed Rate/Kg (Rs.) Quantity Cost/day Quantity Cost/day
Conc. feed/animal/day 27 5 135 2 54
Green fodder/animal/day 0 30 Own grown 20 Own grown
Dry fodder/animal/day 5 5 25 5 25
Total 160 79

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 LACTATION CHART/ANIMAL
Year 1st Batch 2nd Batch
Lactation Days Dry Days Lactation Days Dry Days
1st Year 300 65 180 0
2nd Year 300 65 300 65
3rd Year 300 65 300 65
4th Year 300 65 300 65
5th Year 300 65 300 65
6th Year 300 65 300 65
7th Year 300 65 300 65

TOTAL CONCENTRATE FEED CONSUMED (Kgs)

Year Lactation Dry Total No of gunny bags
1st Year 10500 650 11150 223
2nd Year 13500 1300 14800 296
3rd Year 13500 1300 14800 296
4th Year 13500 1300 14800 296
5th Year 13500 1300 14800 296
6th Year 13500 1300 14800 296
7th Year 13500 1300 14800 296

1. Financial Details
4.1. Project Fixed Capital
Cost per
Sl. No. Particulars Unit Qty. Total (Rs)
unit (Rs)
A Land
1 Land Development LS 20,000
2 Fencing (Barbed wire/Green Fencing) LS 40,000
Sub Total 60,000
B Civil Construction
1 Animal Shed Sq. ft. 600 450 2,70,000
2 Calf Shed Sq. ft. 200 450 90,000
3 Store cum office room Sq. ft. 300 650 1,95,000
Sub Total 5,55,000
C Water Supply
Borewell / Tube well with pump, pipeline,
1 1,10,000
overhead tank and fitments
D Electrification
1 Installation and Fitting (3% of civil cost) 17,000

E Plant & Machinery

Sl. Unit/ Unit Price Total
Particulars Qty. (Rs) (Rs)
No. Specification
1 Equipment (Feeder/Drinker etc.) Nos 10 1,000 10,000
Cost of Milking Machine, Chaff cutter &
2
other Misc. Nos 1 40,000 40,000
Total 50,000
F Livestock
1 Cow including transportation Nos 10 65,000 6,50,000
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 Total 6,50,000
G Miscellaneous Expenditure
1 Insurance premium 48,750
2 Fodder cultivation 12,000
3 DPR cost 3,619
4 Other miscellaneous exp. 2,381
Total Miscellaneous Expenditure 66,750

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4.2. Project Variable Expenses

Details of Recurring Expenditure

A Details of raw material
Sl. No. Items Unit Rate (Rs) 1 2 3 4 5 6 7
Cost of feeding during
1 Rs 160 3,84,000 4,89,600 4,99,392 5,09,380 5,19,567 5,29,959 5,40,558
lactation
Cost of feeding during dry
2 Rs 79 25,675 52377 53425 54493 55583 56695 57828
period
Cost of medicine and
3 Rs 2000 20,000 20,400 20,808 21,224 21,649 22,082 22,523
veterinary aid
Total 4,29,675 5,62,377 5,73,625 5,85,097 5,96,799 6,08,735 6,20,910

2. Details of salary and other benefits

Sl. No. Type of workers No. of Worker Salary Per Month/head (Rs) Total Salary per annum (Rs)
1 Unskilled 2 7,000 1,68,000
Grand Total 2 7,000 1,68,000

4.3. Details of Sales

Sl. No. Type of products Unit Rate/Unit (Rs) Y1 Y2 Y3 Y4 Y5 Y6 Y7

1 Sale of milk Rs 36 10,36,800 13,60,800 14,28,840 15,00,282 15,75,296 16,54,061 17,36,764
2 Sale of gunny bags Rs 5 1,115 1,554 1,632 1,713 1,799 1,889 1,983
3 Sale of culled animals Rs 10000 - - - - - 63,814 -
Total 10,37,915 13,62,354 14,30,472 15,01,995 15,77,095 17,19,764 17,38,747

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 4.4. Project Balance Sheet

Liabilities I II III IV V VI VII

Opening Capital - 5,82,097 6,54,958 7,43,921 8,51,285 9,68,213 11,27,162
Add: Introduced 4,56,345
Add: Profit 1,80,752 3,53,860 4,07,963 4,72,364 5,31,928 6,42,949 6,56,658
Less: Drawing 55,000 2,81,000 3,19,000 3,65,000 4,15,000 4,84,000 5,36,000
Closing Capital 5,82,097 6,54,958 7,43,921 8,51,285 9,68,213 11,27,162 12,47,820
Term Loan from Bank 9,50,056 8,31,712 6,99,674 5,52,356 3,87,991 2,04,606 -
Current Liabilities
Cash Credit from Bank 14,880 14,880 14,880 14,880 14,880 14,880 14,880
Sundry Creditors 21,484 28,119 28,681 29,255 29,840 30,437 31,045
Expenses Payable 22,100 23,400 24,500 25,700 26,900 28,300 29,600
Current Provisions - 5,466 8,314 11,703 23,607 51,362 54,789
Total Current Liabilities 58,464 71,865 76,375 81,538 95,227 1,24,979 1,30,315
Total Liabilities 15,90,617 15,58,535 15,19,969 14,85,179 14,51,431 14,56,747 13,78,135
Assets
Fixed Assets 15,08,750 15,08,750 15,08,750 15,08,750 15,08,750 15,08,750 15,08,750
Less Depreciation 76,550 1,44,943 2,06,069 2,60,719 3,09,596 3,53,323 3,92,454
Net Fixed Assets 14,32,200 13,63,808 13,02,681 12,48,031 11,99,154 11,55,427 11,16,296
Current Assets
Sundry Debtors 34,600 45,500 47,700 50,100 52,600 57,400 58,000
Inventories 26,400 34,500 35,200 35,900 36,600 37,300 38,100
Cash and Bank Balance 7,000 9,100 9,600 10,100 10,600 11,500 11,600
Other Current Assets 90,417 1,05,627 1,24,788 1,41,048 1,52,477 1,95,120 1,54,139
Total Current Assets 1,58,417 1,94,727 2,17,288 2,37,148 2,52,277 3,01,320 2,61,839
Total Assets 15,90,617 15,58,535 15,19,969 14,85,179 14,51,431 14,56,747 13,78,135

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4.5. Calculation of Depreciation
Rates of Depreciation 10% 15% Total depreciation for the year
1 66,500 10,050 76,550
2 59,850 8,543 68,393
3 53,865 7,261 61,126
Year 4 48,479 6,172 54,650
5 43,631 5,246 48,877
6 39,268 4,459 43,727
7 35,341 3,790 39,131

4.6. Projected P&L

Year ending March 31st
Description
I II III IV V VI VII
Capacity Utilisation 100 100 100 100 100 100 100
Revenue
Sales 10,37,915 13,62,354 14,30,472 15,01,995 15,77,095 17,19,764 17,38,747
Opening Stock of Finished Goods - - - - - - -
Closing Stock of Finished Goods - - - - - - -
Total Income (A) 10,37,915 13,62,354 14,30,472 15,01,995 15,77,095 17,19,764 17,38,747
Expenditure
Opening stock of Raw Material - 26,400 34,500 35,200 35,900 36,600 37,300
Purchase (Net) of Material 4,29,675 5,62,377 5,73,625 5,85,097 5,96,799 6,08,735 6,20,910
Closing Stock of Raw material 26,400 34,500 35,200 35,900 36,600 37,300 38,100
Raw Material Consumption 4,03,275 5,54,277 5,72,925 5,84,397 5,96,099 6,08,035 6,20,110
Repair and Maintenance (@1% of Cost) 9,538 9,538 9,538 9,538 9,538 9,538 9,538
Electricity expense 10,400 10,700 11,000 11,300 11,600 11,900 12,200
Insurance cost 66,750 70,100 73,700 77,400 81,300 85,400 89,700
Administrative salaries and wages 1,68,000 1,76,400 1,85,300 1,94,600 2,04,400 2,14,700 2,25,500
Other Misc. Expenses [@1% of sales] 10,379 13,624 14,305 15,020 15,771 17,198 17,387
Total Cost 6,68,342 8,34,638 8,66,767 8,92,254 9,18,707 9,46,770 9,74,435
Profit Before Depreciation, Interest and Tax 3,69,573 5,27,716 5,63,705 6,09,741 6,58,388 7,72,994 7,64,313

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 Year ending March 31st
Description
I II III IV V VI VII
Capacity Utilisation 100 100 100 100 100 100 100
Depreciation 76,550 68,393 61,126 54,650 48,877 43,727 39,131
Profit Before Interest and Tax 2,93,023 4,59,323 5,02,579 5,55,090 6,09,511 7,29,267 7,25,181
Interest on Term Loan 1,10,932 98,658 84,963 69,684 52,636 33,616 12,395
Interest on Working Capital Loan 1,339 1,339 1,339 1,339 1,339 1,339 1,339
Total Interest Paid 1,12,271 99,997 86,302 71,023 53,975 34,955 13,734
Profit Before Tax 1,80,752 3,59,327 4,16,277 4,84,067 5,55,535 6,94,312 7,11,447
Income Tax - 5,466 8,314 11,703 23,607 51,362 54,789
Profit after Tax 1,80,752 3,53,860 4,07,963 4,72,364 5,31,928 6,42,949 6,56,658

4.7. Projected Cash Flow

Period Ending I II III IV V VI VII
Cash & Bank Balance at Beginning - 7,000 9,100 9,600 10,100 10,600 11,500
Cash Inflow during the Period 16,67,167 4,35,654 4,73,599 5,32,178 5,94,494 7,16,428 7,42,106
Cash Outflow during the Period 16,60,167 4,33,554 4,73,099 5,31,678 5,93,994 7,15,528 7,42,006
Closing Cash & Bank Balance 7,000 9,100 9,600 10,100 10,600 11,500 11,600

4.8. Projected Loan Repayment

Year Interest EMI Principal
1 1,10,932 2,17,001 1,06,069
2 98,658 2,17,001 1,18,344
3 84,963 2,17,001 1,32,038
4 69,684 2,17,001 1,47,318
5 52,636 2,17,001 1,64,365
6 33,616 2,17,001 1,83,385
7 12,395 2,17,001 2,04,606
Total 4,62,883 15,19,008 10,56,125

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 4.9. Calculation of DSCR, IRR and BEP
Calculation of DSCR
Year I II III IV V VI VII
Net Sales 10,37,915 13,62,354 14,30,472 15,01,995 15,77,095 17,19,764 17,38,747
Net Profit 1,80,752 3,53,860 4,07,963 4,72,364 5,31,928 6,42,949 6,56,658
Interest Paid 1,12,271 99,997 86,302 71,023 53,975 34,955 13,734
Cash Accruals (a) 2,93,023 4,53,857 4,94,265 5,43,387 5,85,904 6,77,905 6,70,392
Principal 1,06,069 1,18,344 1,32,038 1,47,318 1,64,365 1,83,385 2,04,606
Interest 1,12,271 99,997 86,302 71,023 53,975 34,955 13,734
Total (b) 2,18,340 2,18,340 2,18,340 2,18,340 2,18,340 2,18,340 2,18,340
DSCR 1.34 2.08 2.26 2.49 2.68 3.10 3.07
Average DSCR 2.43

Calculation of Internal Rate of Return (IRR)

Year PAT Depreciation Cash Accrual
Sl. No.
Cash outflow at beginning -15,27,350
1 31-03-2023 1,80,752 76,550 2,57,302
2 31-03-2024 3,53,860 68,393 4,22,253
3 31-03-2025 4,07,963 61,126 4,69,089
4 31-03-2026 4,72,364 54,650 5,27,015
5 31-03-2027 5,31,928 48,877 5,80,805
6 31-03-2028 6,42,949 43,727 6,86,676
7 31-03-2029 6,56,658 39,131 6,95,789
IRR 23.24%
Payback Period 3 Years 9 Months
Calculation of Break-Even Point (BEP)
Sales 10,37,915 13,62,354 14,30,472 15,01,995 15,77,095 17,19,764 17,38,747
Variable Cost 4,13,654 5,67,901 5,87,229 5,99,417 6,11,870 6,25,233 6,37,497
Contribution 6,24,261 7,94,453 8,43,242 9,02,578 9,65,225 10,94,531 11,01,250
Fixed Cost 4,43,508 4,35,127 4,26,966 4,18,511 4,09,690 4,00,220 3,89,803
BEP Sales 7,37,391 7,46,169 7,24,302 6,96,451 6,69,398 6,28,838 6,15,454
6,88,286
Average BEP sales

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4.10. Summary of Project Cost
Sl. No. Name of Assets Amount
1 Land Development and Fencing 60,000
2 Civil Construction 5,55,000
3 Irrigation/Water Supply 1,10,000
4 Electrification 17,000
5 Plant & Machinery 50,000
6 Livestock 6,50,000
7 Fodder Cultivation 12,000
8 Insurance 48,750
9 DPR Cost 3,619
10 Other miscellaneous exp. 2,381
Total Fixed Cost 15,08,750
Recurring 18,600
Cost of Project 15,27,350

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