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Sakthi milk Dairy

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Promoters information

Mr. Manish Singh (MBA)Mr. Paresh Bothara (MBA)Mr. Bharatreddy (MBA)Mr. Indraneel (MBA)

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1. SALIENT FEATURES

Employment generation in a backward village

Direct employment of 15 skilled and unskilled workers with

potential for 20 more employment in the second phase

Indirect employment of 15-20 people in various supporting

activities

Totally scientific and well planned

Managed by highly qualified persons

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2. PRODUCTION CAPACITY PER YEAR

Capacity 2,37,250 liters/year (650 liters/day

Selling Price 15 Rs./liter

3. PROJECT COST/CAPITAL INVESTMENT

Description Amount Rs.

1 Preliminary & Preoperative Expenses 50,000

2 Fixed Capital 19,50,000

3 Working Capital for 1 month 1,66,500

Total Project Cost 21,66,500

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4. MEANS OF FINANCE

Prime Ministers Employment Generation Programme (PMEGP)

Description %age Amount Rs.

1 Promoter Contribution 5% 1,08,325

2 Subsidy 35% 7,58,275

3 Term Loan 60% 12,99,900

Total 21,66,500

5. FINANCIAL ASPECTSA. FIXED

CAPITAL

Description Qty. Rate Amount Rs.

1 Land ancestral

2 Cows/Buffaloes 50 30,000 15,00,000

3 Building 1 2,00,000 2,00,000

4 Shed 2 1,00,000 2,00,000

5 Milk testing machine 1 50,000 50,000

Total 19,50,000

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B. WORKING CAPITAL

i. Salaries & Wages (per month)

Description Nos. Sal/Mon. Amount Rs.

1 Supervisor 1 5,000 5,000

2 Skilled worker 2 4,000 8,000

3 Unskilled worker 12 3,000 36,000

Total 15 49,000

ii. Raw Material (per month)

Description

1 Feed Kgs 6,000 8 48,000

2 Bhusa Qs 75 300 22,500

Total 70,500

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iii. Utilities (per month)

Description Unit Amount Rs.

1 Power 10,000

2 Water 10,000

Total 20,000

iv. Other Expenses (per month)

Description Amount Rs.

1 Postage & Stationery Expenses 2,000

2 Transportation Expenses 10,000

3 Vet, Medicines and Vaccinations 10,000

4 Livestock Insurance 5,000

Total 27,000

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v. Total Working Capital (per month)

Description Amount Rs.

1 Salaries and Wages 49,000

2 Raw Material 70,500

3 Utilities 20,000

4 Other Expenses 27,000

Total 1,66,500

6. COST OF PRODUCTION (PER YEAR)

Description Amount Rs.

1 Total Working Capital (per year) 19,98,000

3 Depreciation on fixed capital @ 15% 2,92,500

4 Interest on loan amount @ 5% 74,425

Total 23,64,925

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7. TURNOVER (PER YEAR)

Description Qty. Rate Rs. Amount Rs.

1 Milk production (litres per annum) 2,37,250 15 35,58,750

2 Hiefers 25 10,000 2,50,000

3 Calves 25 2,000 50,000

4 Manure/Compost 50,000

Total 39,08,750

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8. PROFIT ANALYSIS & RATIOS

Net Profit (turnover - cost of production per year) Rs. 15,43,825

Percentage of profit on sales 39 %

Percentage of return on investment 71 %

Break Even Point in 1.5 Years

9. REPAYMENT PLAN

Initial Moratorium of 1 Year

Repayment in 5 years by EMI

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10. EXPANSION PLAN

In the first phase, milk would be supplied to the Faizabad centre of Parag Dairy ofUP MilkCooperative Federation for 1-2 years.

In the second phase from second year onwards, a pasteurization and packagingplant would be established.

Packaged milk would be marketed directly to the consumers.

These activities will generate many more employment opportunities for the villagepeople.