PROJECT AT A GLANCE

1 Name of the Unit Poultry Farming

2 Line of Activity Poultry

3 Products Country Chicken meat

4 New/Expansion/Modernization New

5 Constitution Proprietorship

6 Name of the Proprietor K SRINATH

7 Registered Address 1-31-496 INDIRA NAGAR, KANAJIGUDA,

TRIMULGHERRY, SEC-BAD-15

8 Site Location INDIRA NAGAR, KANAJIGUDA,

TRIMULGHERRY, SEC-BAD-15

9 Cost of the Project 10,00,000.00

10 Faciliites Required Term Loan

11 Promoters Contribution 1,00,000.00

12 Loan From Bank 9,00,000.00

 INTRODUCTION:

Poultry has an important role in India as eggs and meats are the important and comparatively cheap source
of protein and vitamins. Chicken is most widely accepted meat in India. Eggs have become an important
ingredient of morning breakfast for a large number of families in urban areas. So overall the poultry business
seems to be a good option for someone who wants to start a new business with less investment.

INDUSTRY LOOKOUT AND TRENDS

Today India is the world's fifth largest egg producer and the eighteenth largest producer of Countrys and its
per capita consumption of such products are poor - 37 eggs and 1 kg of poultry meat per capita per annum.
The growth of the Poultry Industry in India is marked by an increase in the size of the poultry farm. In past
years Country farms had produced on average a few hundred birds (200-500 chicks) per cycle. Small units
are probably finding themselves at problem because of high feed and transport costs, expensive vaccines, and
veterinary care services and the non-availability of credit. Some small units are reported to be shifting from
layer to Country production because output in Country units can be realized in six weeks. India is the fifth
largest producer of egg and ninth largest producer of poultry meat. India was well positioned as 17th in the
world poultry production.

MANUFACTURING PROCESS:

Poultry farming is the process of raising domesticated birds such as chickens, ducks, turkeys and geese for
the purpose of farming meat or eggs for food. Chickens raised for eggs are usually called layers while
chickens raised for meat are often called Countrys. For a Country chicken to become market size it requires
45 to 60 days and thus 4-5 cycle of business can be done during a year. Layers are raised in cage, as in
furnished cage or through yarding. Countrys are raised in free range. Here an addition of organic approach
can be implemented where feed and water are controlled and those inputs go which are organic and have no
or little (approved) chemicals. Proper medication, water, antibiotics, feed with appropriate nutrients,
vaccines on specified occasions etc. are to be maintained on daily basis as per standard defined by regulators.
Health check up on regular interval has to be done as per schedule. In yarding method, predators have to be
restricted to save chickens from being harmed. Laying hens are routinely beak-trimmed at 1 day of age to
reduce the damaging effects of aggression, feather pecking and cannibalism. The beak trimming process has
to be done as per defined by regulators and animal health practitioners. Farming of chickens on an industrial
scale relies largely on high protein feeds derived from soyabeans. Two kilograms of grain must be fed to
poultry to produce one kilogram of weight gain.
Poultry Farming Total

Project Cost

S.No Particulars Amount

1 Cost of Chick's 1,40,000
Type - Country
Number of Chick's- 2000 Each
Chick @ 70
2 Shed Cost 6,00,000
Area Required 100*30sft/ Chick's
Total sft required for - 3000 sft
Cost of Const/sft @ 200
3 Mess 35,000
4 Water and Feeding Eq 40,000
5 Water Purifier 15,000
6 Motor 3HP 20,000
7 Electrical Wiring 25,000
8 Field Laese 85,000
9 Misc Exp 40,000
Total Cost 10,00,000

Means of Finance :Term Loan

S.NO Particulars Amount %

1 Promoters Conribution 50,000 5%

2 Bank Finance 9,50,000 95%
Total 10,00,000 100%

S.NO Particulars Amount %

Working Capital
Total Working Capital Required 9,20,000 75,616
Poultry Farming

Yield Statement -Chicken Meat

Particulars Year 1 Year 2 Year 3 Year 4 Year 5
1.Total Installed Capacity per Batch( Kgs) 4000 4500 4500 4500 5000
3.No of Production Batch's in year 4 4 4 4 4
4.Total Installed Capacity 16,000.00 18000 18000 18000 20000
5.Capacity Utilization 80.00% 80.00% 80.00% 80.00% 80.00%
5.Actual Capacity in Kgs 12,800.00 14400 14400 14400 16000
6.Selling Price per Kgs 100 100 100 100 100
7.Total Revenue /Year 12,80,000 14,40,000 14,40,000 14,40,000 16,00,000

Cost
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
a) Feed Cost
1.Feed Cost /Day/Chicks 1200 1400 1400 1400 1600
2.Number of Chick's 1 1 1 1 1
3.No of Days in a year 300 300 300 300 300
Total Feed Cost 3,60,000 4,20,000 4,20,000 4,20,000 4,80,000

Cost
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
- - - - -
a)Labour Cost
1.Manpower Required 3 3 3 3 3
2.Salary/Month 9,000 9,000 10,000 10,000 10,000
Total Salary 3,24,000 3,24,000 3,60,000 3,60,000 3,60,000

b) Vetarnary Aid
Medicines/ Year 2,00,000.00 220000 242000 266200 292820

c)Insurance @2% on Animal Cost - - - - -

d) Electrical Cost/ Year 36,000 39,600 43,560 47,916 52,708

Poultry Farming

Projected Profitabilty Statement

Projected Projected Projected Projected Projected

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Income

Sales Revenue 12,80,000 14,40,000 14,40,000 14,40,000 16,00,000

Other Income - - - - -

Total 12,80,000 14,40,000 14,40,000 14,40,000 16,00,000

Expenditure

Feed Cost 3,60,000 4,20,000 4,20,000 4,20,000 4,80,000

-
Salaries & Wages 3,24,000 3,24,000 3,60,000 3,60,000 3,60,000
-
Medicine Cost 2,00,000 2,20,000 2,42,000 2,66,200 2,92,820

Electricity Charges 36,000 39,600 43,560 47,916 52,708

Misc Exp - - - - -

Finance Charges 1,06,000 56,667 40,667 24,667 8,667

Depriciation 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000

Profit Before Tax 1,54,000 2,79,733 2,33,773 2,21,217 3,05,806

Provision for Tax - - 66,365 91,742

Profit After Tax 1,54,000 2,79,733 2,33,773 1,54,852 2,14,064

Net Profit Ratio 12.03% 19.43% 16.23% 10.75% 13.38%

BALANCE SHEET
Projected Projected Projected Projected Projected
Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Liabilities
Proprietors Capital
Capital 2,00,000 3,54,000 6,33,733 8,67,507 10,22,359
Reserves & Surplus 1,54,000 2,79,733 2,33,773 1,54,852 2,14,064
Less: Drawings - - - - -
Total 3,54,000 6,33,733 8,67,507 10,22,359 12,36,423
Secured Loans
Term Loan 6,40,000 4,80,000 3,20,000 1,60,000 -

Unsecured Loans - - - - -

Current Liabilities
Advances From Customers - - - - -
Sundry Creditors - - - - -
Other Provisions - - - - -

Total 9,94,000 11,13,733 11,87,507 11,82,359 12,36,423

Assets

Fixed Assets 9,00,000 8,00,000 7,00,000 6,00,000 5,00,000

Non Current Assets - - - - -

Current Assets
Sundry Debtors 24,889 28,000 28,000 28,000 31,111
Loans & Advances - - - - -
Cash & Bank Balances 69,111 2,85,733 4,59,507 5,54,359 7,05,312

Total 9,94,000 11,13,733 11,87,507 11,82,359 12,36,423

 Debt Service Coverage Ratio

Projected Projected Projected Projected Projected

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Profit After tax 1,54,000 2,79,733 2,33,773 1,54,852 2,14,064

Depriciation 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000

Interest on term Loan 1,06,000 56,667 40,667 24,667 8,667

Total 3,60,000 4,36,400 3,74,440 2,79,519 3,22,731

Payment Obligation

TL Installments 1,60,000 1,60,000 1,60,000 1,60,000 1,60,000

Interest 1,06,000 56,667 40,667 24,667 8,667

Total 2,66,000 2,16,667 2,00,667 1,84,667 1,68,667

Break Even Point

Projected Projected Projected Projected Projected
Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Revenue 12,80,000 14,40,000 14,40,000 14,40,000 16,00,000

Variable Costs
Feed Cost 3,60,000 4,20,000 4,20,000 4,20,000 4,80,000
Medicine Cost 2,00,000 2,20,000 2,42,000 2,66,200 2,92,820
Total 5,60,000 6,40,000 6,62,000 6,86,200 7,72,820

Contribution 7,20,000 8,00,000 7,78,000 7,53,800 8,27,180

Fixed Costs
Salaries 3,24,000 3,24,000 3,60,000 3,60,000 3,60,000
Electricity Charges 36,000 39,600 43,560 47,916 52,708
Interest 1,06,000 56,667 40,667 24,667 8,667
Depriciation 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000
Total 5,66,000 5,20,267 5,44,227 5,32,583 5,21,374

Break even Point 78.61% 65.03% 69.95% 70.65% 63.03%

Break even Sales 10,06,222 9,36,480 10,07,309 10,17,404 10,08,485

Margin of Safety Sales 2,73,778 5,03,520 4,32,691 4,22,596 5,91,515

The basis of profitability calculation:
This unit will have capacity of 2500 Chicken raising capacity and Sales of 3750 KGS of Chicken. The growth of
selling capacity will be increased 20% per year. (This is assumed by various analysis and study; it can be
increased according to the selling strategy.)

CONCLUSION
This project is financially viable and has strong growth potential. With proper financial support, it will
generate sustainable income and contribute to the poultry industry. Loan assistance will help in setting up a
profitable poultry farm that ensures steady returns