Gayatri dairy
your trustworthy doodhwallah
By:- Vinay Kumar
Parag Goregaonkar
Ritesh Pathak
Naqui Shaikh
Flow of presentation
Introduction
Evolution of the business idea
Objective of the business
Business idea
Operational structure
Marketing strategy
Implementation plan
Costing
Financial analysis
Second phase
Exit strategy
Q&A
Introduction
India is the largest producer of milk
Huge market potential in the metros, asMilk
and milk products constitute an integral part
of the daily diet of all Indian households,
without exception, across all regions and all
social and economic categories.
Over 70% of milk production is from
unorganized sector.
Evolution of the business idea
Need & benefits of milk consumption
Milk plays an important role in daily diet
It provides protein, fat carbohydrates and minerals
Its calcium content.
Large number of unsatisfied consumers
Lack of purity, milk is either contaminated with water or urea.
If they consume packaged milk, they don’t find the natural
taste as its is treated chemically.
Sometimes they get milk of morning in the evening and vice-
versa. So customers are dissatisfied.
They don’t get the milk on time i.e either in morning before
9:00 am.
Objectives
Vision statement
To provide the customers their true value for
their money, and add value to the society
with an aim of generating employment for the
poor.
Mission statement
We propose to become the first choice of the
consumers when it comes to the requirement
of fresh n pure milk, as we want to get
ourselves known for our good quality.
Business idea
The concept of opening a dairy farm is to
provide consumers of metro the taste of pure
and fresh milk. We will supply milk to our
customers on the day the animal is being
milked and that too at the prevailing market
price, through our well managed supply and
logistics department. Also, our dairy farm will
be near to the cities so that we can minimize
the travelling time that is being taken.
Dairy farm location
Components of dairy farm
◦ Land
◦ Animal quality
◦ Sheds
◦ Fencing the land area
◦ Water facilities
◦ Water storage pool
◦ Refrigerator
◦ Mode of transport
◦ Man power
◦ Distribution channels
◦ Other materials needed
◦ furniture
Operational structure
We will maintain our supply chain and purity maintenance
through following measures:-
We have to start our day as early as possible, which should
not exceed 3:00am.
We have to finish milking of cows latest by 6:00am.
Since, supply of fresh n pure milk is our main usp, so we
have to reach city latest by 7:00am, this is the main reason,
why, We are not going beyond 50kms to setup my dairy
farm, as we cannot cover more than 50kms in an hour.
There will be two distribution centres in Delhi, one in
Patparganj area while the other at Rajendra Nagar this may
change respectively. The reason being these two places as
they lie in ring road and it will be easier to reach there.
After reaching the city they will be packed in
one and half lts pack and would be delivered to
customers at their door and the target to
complete the delivery process latest by 8:30am.
The same would be repeated for the milk
produced in the evening.
The surplus milk will be sold through our
distribution centres.
The food requirement of animal would be
fulfilled by local as well as urban market as
fodder for animals are easily available.
The amount of milk supplied would be realised
on a monthly basis.
Marketing strategy
Four p’s
Product specification
Pricing strategy
Promotion
a)radio
b)sales personnel
c)newspaper
d)hoardings & posters
Place
Use of STP
Segmentation
Targeting
Positioning
SWOT analysis:-
Strength- it is the supply of fresh n pure milk
directly to the consumers.
Weakness- we don’t have a brand image, but
we are sure that we will build our brand
image through our quality product.
Opportunities- The huge market potential in
the national capital region and large number
of unsatisfied customers.
Threats- The existing players are the biggest
threat. But, we are coming with our own
unique selling proposition, so we are sure to
make an impact.
Implementation plan
Selection and obtaining a land will take one
month time.
Two months time would be needed for
erection of sheds, fencing the land area and
building the whole dairy structure.
Purchasing of animals would take another
one month time.
So a total time of four months would be
needed for building the full capital structure
and to start the operation.
Costing
Initial investment required
4.1 Initial investment required
Particulars Cost if land is taken on lease(15 years) Cost if land is purchased on outright
Land (10 acres) 15,00,000 1,00,00,000
Fencing the land area 5,00,000 5,00,000
Construction of sheds & godowns 10,00,000 10,00,000
Purchase of animals(100 cows) 40,00,000 40,00,000
Refrigerator(1500 lts each) 3,00,000 3,00,000
Coolers& fans 50,000 50,000
Shops for DC 5,00,000 5,00,000
Containers 30,000 30,000
Vehicle 5,00,000 5,00,000
Water facilities construction 1,50,000 1,50,000
Construction of pool 1,00,000 1,00,000
Furniture 1,00,000 1,00,000
Two wheeler and bicycle 90,000 90,000
Packaging machine 80,000 80,000
Other expenses 3,00,000 3,00,000
Total 92,00,000 1,77,00,000
Operational cost required
Requirement Rate Cost
Maintenance Whole year for 100/cow 36,50,000
of animals 100 cows
Insurance 100 cows 1,000 1,00,000
Labour charge 12 nos 3,000/month 3,96,000
Supervisors 2 nos 6,000/month 1,44,000
Driver 1 nos 4,500/month 54,000
Compounder 1 nos 5,000/month 60,000
Fuel cost - - 3,50,000
Shop rent 2 nos 6,000/month 1,44,000
Electrical - 2,000/month 24,000
charges
Telephone - 2,000/month 24,000
charges
Other costs - - 10,54,000
Total - - 60,00,000
Financial summary
Projected profit and loss account for first four years:
Particulars 1 2 3 4
Sale of milk 1,36,87,500 2,05,31,250 2,73,75,000 5,47,50,000
Sale of cow 1,12,500 2,18,750 3,25,000 7,50,000
dung
Net revenue 1,38,00,000 2,07,50,000 2,77,00,000 5,55,00,000
0perating cost 60,00,000 90,00,000 1,20,00,000 2,40,00,000
Gross profit 78,00,000 1,17,50,000 1,57,00,000 3,15,00,000
Depreciation 15,60,000 23,50,000 31,40,000 63,00,000
(39%)
Advertisement 20,00,000 25,00,000 30,00,000 50,00,000
cost
Other expense 5,40,000 9,00,000 10,60,000 12,00,000
Net profit 37,00,000 60,00,000 85,00,000 1,90,00,000
Tax 13,50,500 21,90,000 31,02,500 69,35,000
Pat 23,49,500 38,10,000 53,97,500 1,20,65,000
Second phase
The second phase of the plan is very
ambitious which consists of bigger
investments. It is for this reason that we plan
to start this phase at least after two years of
the establishment of the dairy farm, as lot of
expertise and management would be needed.
There would be multiple benefits that would
be realised for a longer period of time.
implementation
In this phase we intend to purchase around
One hundred acres of land along the radius
of three hundred kilometres around the Delhi
NCR region. And then we will purchase
around 1000-3000 calf of higher breed and
we will start animal farming. At the initial
stage we will start only with dairy farming &
fishing and then we will swiftly start with
other types animal farming activities.
Components of second phase
Land:
Animals:
Fencing the land area:
Sheds:
Building of ponds:
Mode of transport:
Manpower requirements:
Initial Investment Required:
Particulars amount
cost of the land 5,00,00,000
cost of calves(1500nos) 30,00,000
fencing the land area 20,00,000
construction of sheds 40,00,000
construction of ponds 10,00,000
other expenses required 50,00,000
TOTAL 6,50,00,000
Return on investment
In animal farming business there is multiple type
of sources from where income could be
generated.
These calves when they become a mature cow.
Each one could be sold for 25,000-30,000.
Even if they are not sold, their milk that would be
generated could be sold through our established
dairy networks, or it can be processed and
transformed into other milk products.
A creation of land bank, and a continuous
appreciation of the price of land.
Exit strategy:
Q &A
Thank you.
