SMEDA Poultry Farm (7,500 Broiler Birds)

Pre-Feasibility Study

BROILER FARM (7500 Birds)

Small and Medium Enterprise Development Authority Government of Pakistan www.smeda.org.pk HEAD OFFICE th

6 Floor , LDA LDA Plaza, Plaza , Egerton Road, Lahore Tel: (042) 111-111-456, Fax: (042) 6304926-27 [email protected] REGIONAL OFFICE PUNJAB

REGIONAL OFFICE SINDH

8 Floor , LDA Plaza, Egerton Road, Lahore

5 Floor, Bahria Complex II, M.T. Khan Road, Karachi. Tel: (021) 111-111-456 Fax: (021) 5610572 [email protected]

th

Tel: (042) 111-111-456, Fax: [email protected]

TH

REGIONAL OFFICE NWFP

REGIONAL OFFICE BALOCHISTAN

Ground Floor State Life Building The Mall, Peshawar. Tel: (091) 9213046-47 Fax: (091) 286908 [email protected]

Bungalow No. 15-A Chaman Housing Scheme Airport Road, Quetta. Tel: (081) 831623, 831702 Fax: (081) 831922 [email protected]

January, 2006


Broiler Farm (7500 Birds)

DISCLAIMER The purpose and scope of this information memorandum is to introduce the subject matter and provide a general idea and information on the said area. All the material included in this document is based on data/information gathered from various sources and is based on certain assumptions. Although, due care and diligence has been taken to compile this document, the contained information may vary due to any change in any of the concerned factors, and the actual results may differ substantially from the presented information. SMEDA does not assume any liability for any financial or other loss resulting from this memorandum in consequence of undertaking this activity. Therefore, the content of this memorandum should not be relied upon for making any decision, investment or otherwise. The prospective user of this memorandum is encouraged to carry out his/her own due diligence and gather any information he/she considers necessary for making an informed decision. The content of the information memorandum does not bind SMEDA in any legal or other form.

DOCUMENT CONTROL Document No.

PREF 18

Revision

2

Prepared by

SMEDA-Punjab

Approved by

GM Punjab

Issue Date

January, 2006

Issued by

Library Officer

1 PREF-18/January, PREF-18/January, 2006/ Rev 2


1 1.1


INTRODUCTION Project Brief

The broiler farm is a project of livestock sector, in which, the day old chicks (DOCs) are raised on high protein feed for a period of six weeks. This business can be started both in rural and semi-urban areas in sheds. The Poultry sheds can be acquired on rental basis. These sheds have all the required facilities for the broiler farm. The rent cost varies between Rs 1 to Rs 2 per square feet depending upon the location and facilities at the farm. The broiler birds are sold to traders and the whole sellers markets in the urban areas. Some times birds can also be sold directly to the shopkeepers in the urban markets. Broiler farming is a profitable venture depending on the demand of the meat in the market. Annually, six flocks of birds will be raised on the same premises of a farm. 1.2 1.2

Oppo Op port rtun uniity Rat Ratiional onalee

Broiler meat is the cheapest source of animal protein available in the country. The time required for raising broiler birds is lesser than that for big animals. The consumption of white meat is increasing due to growing health consciousness in the masses. According to the Agriculture Statistics of Pakistan the per capita consumption of poultry meat is increasing at a rate of 4% per annum. The existing daily availability of protein quantity per capita in Pakistan deriving from animal source including beef, mutton, poultry and fish combined amounts to 11 grams. This is far less than the recommended daily dietary protein allowance from animal source of 26 grams according to the World Health Organization standards. 1

Figure 1-1: Daily Protein Consumption

Recommended Daily Dietary Protein Allowance Vs Existing Availability 1991-2000 30 25

s 20 m a r 15 G 10 5 0 1 991

199 2

1 9 93

A va va il il ab abl e p er er Da Da y

1

1 9 94

199 5

19 96

1 998

19 99

R ec ec om om me me nd nd Da Da il il y D ie ie ta ta ry ry Al All ow ow an an ce ce

Source: SMEDA survey 2001


19 97

2 000


1.3


Tota otal Pr Proje oject Cost

A broiler farm with a population of 7,500 birds established in a rented building needs a capital investment of about Rs 69,870 for purchasing farm machinery and equipment. In addition to this, a sum of Rs 596,882 is required as working capital, which will be used for purchasing day old chicks and raw material (feed & vaccines) etc. 1.4

Prop roposed Cap Capaci acity

In this pre-feasibility study, all the calculations have been based on a flock size of 7,500 birds, with raising six flocks per year. There will be a lag time of two weeks for cleaning and fumigation of the farm.

2

CURR CURREN ENT T INDU INDUST STR RY STR STRUC UCTU TURE RE

The generation line of broiler comes from pure line, which is imported. This produces grand parents for parent stocks and parent stock end up in producing the final product. The farmers get day old broiler from hatcheries. These hatcheries maintain their breeder farms, or in some cases, purchase their hatching eggs from breeder farms. These breeder farms depend on producers of parent stock. Poultry feed mills are the major player in the poultry industry, which produce a specific formula feed mix. Poultry feed consists of rich protein elements like grains, gluten, blood meal, fishmeal and soyabean meal. The major component of cost of production of chicken meat accounts for feed cost. The poultry meat production has showed a growing trend over the past few years after a dip in 1997 due to the ban imposed on wedding dinners. The meat production trend of chicken meat, beef and mutton from the year 1995-2003 is presented below. 2

Figure 2-1: Meat Production Trends2

1200 1000

) s n o T , 0 0 0 (

800 800 600 600 400 400 200 200 0 1995

1996

1997

1998 Beef

2

1999 Mutton Mutton

Source: Agricultural Statistics of Pakistan 2003-2004 3

PREF-18/January, PREF-18/January, 2006/ Rev 2

2000

2001 Poultry Meat Meat

2002

2003



Figure 2-2: Broilers' Population (1995-2003)

40 0 35 0 s 30 0 d r i B 25 0 n o 20 0 i l l i M15 0

10 0 50 0 1 99 5

19 96

19 97

1 99 8

1 99 9

20 00

2 00 1

2 00 2

20 03

Poultry (Million Birds)

3

MARKETING

The marketing of chickens follows the traditional channels of distribution. Generally, broilers are distributed in the market through middlemen (Arti) and wholesalers. wholesalers. The role of Arti is to identify identify a farm and negotiate negotiate the price . In some cases, the middleman provides Day Old Chicks and other farm inputs (feed, etc.) to the broiler farmers and then agrees to buy back the mature birds from them. Birds are transported to the urban market and are sold to retailers or market-street poultry shops. Birds are sold on live-weight basis. The time spent in getting broilers from the farm to the retail shop is brief. Although collection and handling of birds has improved with the use of loader vehicles, but it is an established fact that greater the distance between the poultry producer and consumer, more complicated is the marketing system including their collection, handling and transportation to the consumer or processing plants. The processing plant produces dressed chicken (slaughtered and cleaned). However, a very small amount of dressed chicken is available in the local retail market. The integrated processing units distribute frozen and dressed chicken packed in whole or cut-ups to the consumer through retail shops under their brand names. The trick in marketing is quick availability of market information of chicken supply and demand, which will determine the selling price.

4

FARM MANAGEMEN MENT

Farm input required for a broiler farm includes farm equipment (drinkers, feed trays, brooders, and feeders), electronic fixtures and other consumer items (feed, vaccines & medicines, rice-husk or saw-dust, water, electricity, etc.).



4.1


Day Old Chicks

The chicks should be of uniform size, active, alert and bright eyed. The shank or leg covering (skin) of healthy chicks appears bright and shiny. 4.2

Brooding

Proper brooding temperature is required to keep the chicks in comfort. Coal or sawdust is burnt for supplying heat at the stage of brooding in the poultry farm. In the first week, 95ºF is quite comfortable. For the first one week, it is also essential to observe four to five times daily the condition (temperature) of the chicks. They should neither huddle nor move away from the brooding hover, but should be moving around evenly. As chicks grow, the temperature may be reduced at a rate of 5ºF per week until approximately 70ºF is reached in the sixth week. 4.3

Feeding

Broilers are usually fed with the following two types of ration: 



Broiler starter: It is fed to the broiler birds up to five weeks of age. Broiler finisher: It is fed to the broiler of more than five weeks of age and continued till the age of marketing.

Feeding three or four times each day will stimulate feed intake and prevents wastage. Percentage requirement of different ingredients in starter and finisher diet is given in Table 4-1: Table 4-1: Broiler Starter & Finisher Diet Ingredients

Maize Rice Polish Groundnut cake Sunflow er cake Fish meal Meat meal Blood meal Animal fat Bone meal Limestone Salt Mineral and Vitamin mixture Total

Starter diet (% required) 44.25 10.00 15.00 15.00 6.00 6.00 0.25 2.00 0.75 0.5 0.25 0.1

Finisher diet (% required) 44.10 20.00 11.00 11.00 5.30 5.50 0.2 1.25 0.6 0.7 0.25 0.1

100.00

100.00

This starter and finisher feed can be obtained in prepared form, from the feed mills. 5 PREF-18/January, PREF-18/January, 2006/ Rev 2


4.4


Housing

The chicks should be kept in a clean, dry and well-ventilated room. Broiler house should have proper ventilation as this provides the birds fresh air and carries off moisture. The entire building including litter and all equipment should be fumigated. 4.5

F e e d er s

It is essential to provide adequate feeder space. Ideally, one pan type feeder is sufficient for 50 birds. Therefore, for 7500, birds 150 feeders would be more than enough. 4.6

Lighting

Most broiler growers provide 24 hours light during brooding and early growing period. Recent research conducted in windowless buildings, using intermittent lighting of 1-2 hours period, has indicated significantly improved feed efficiency. Initially, for first fifteen days, light intensity should be 40-60 watts per 200 sq. ft of space and this can be replaced by 15 watts bulb in the beginning of third week. The feasibility has taken monthly electricity charges of Rs 2500. 4.7

Drinkers

Adequate drinking space should also be provided to the birds. The drinker should contain fresh, clean and cold water. It is necessary to provide extra water during summer. One drinker is sufficient for 50 birds. 4.8

Litter

Litter is spread on the floor to prevent the direct contact with the floor. Straw, ricehusk and sawdust are generally used for making the litter. It should be dry and free of moulds. Caked or moldy material should be removed and refilled with fresh materials. Extensively wet and dusty litter should also not be used. Using new litter for each flock is good for raising disease-free broiler. 4.9

Vaccination

Vaccination can be provided to chicks through injections, can also be mixed in the water and also through eye drops. Average vaccination price per bird mostly varies between Rs 2-5. The feasibility has taken cost of vaccination at Rs 4 per bird. 4.10 Fumiga Fumigatio tion n and Sprayi Spraying ng

It is essential to check all equipment and walls of the broiler house carefully that they are clean, and washed with disinfectant solution, and dried. The rooms should be white washed and sprayed before the arrival of birds. Disinfectant solution can be prepared with Phenol, Potassium Permanganate, Carbolic Acid and Formaline. A solution of Sodium Hydroxide/Caustic Soda with warm water can also be used to clean the house. 6 PREF-18/January, PREF-18/January, 2006/ Rev 2



To sanitize the broiler house from germs and insects, it is fumigated with Formaldehyde Gas, which is produced by putting Formaline on Potassium Permanganate. The rooms should be vacant and sealed for 30 minutes after the fumigation so that the gas infiltrates in every corner of the room. In the pre-feasibility report, the cost of fumigation has been taken as Rs 2,000 per flock.

5

MANP MANPOW OWE ER RE REQUIR QUIRE EMEN MENTS

Semi skilled workers are needed to look after the feeding, vaccination and cleaning operations at the farm. A single person can handle 3,000 birds easily. Two people will be hired to mange the operations of a broiler farm of 7,500 birds. Each attendant is given a monthly salary of Rs 4,000. In addition, a supervisor will also be hired at a monthly salary of Rs. 5,000.

6

FARM EQUIPMENT

Various types of farm equipment are needed for feeding, drinking and handling the birds. List of farm equipment, which will be needed, is as under: Table 6-1 Farm Equipment Farm Equipment

Rs/unit.

Rs.

15 3 38 112

600 1,200 90 180

9,000 3,600 3,420 20,160

Small Feeder

38

95

3,610

Large Feeder

112

140

15,680

8

1,800

14,400

Brooder Drum Heater Small Drinkers Large Drinkers

Shifting Box

3

Total Machine Cost

3

No.

326

Used to shift Day Old Chicks


69,870


7


LAND & BUILDING

Table 7-1 Space Requirement Space Requirement

Required Area (Sq.ft)

Management building Shed Space (1 Sq.ft/bird)

100 7,500

Store Room

180

Rooms for Guard and Workers

144

Total Project Space Requirement Rental Cost/sq.ft (Rs)

1.50

Total Building Rental Cost (Rs) per month 7.1

7,924 11,886

Recom Recomme mend nded ed Mode Mode for for Acqu Acquir irin ing g Lan Land d

It is recommended that the proposed project should be started in a rented shed. These sheds are located along roadsides around cities and rural areas. This option will help us to save on the capital cost required for constructing sheds. 4

Rental cost of Rs 1.5/sq.ft per month prevails in the market. Advance rent for one year is paid. 7.2 7.2

Suiitabl Su tablee Loca Locattions ions

Suburban and rural areas around the major cities of the country are the suitable areas for setting up a poultry farm. Setting up a farm at an isolated place will minimize the risk of disease. Proximity of the farm to the city enables the farmer to have a quick communication with the market for the purchase of Day Old Chicks, farm inputs (feed, etc.), and selling of mature birds. 7.3 7.3

Infr Infras astr truc uctu ture re Req Requir uirem emen entt

Poultry's farming needs to be handled tactically, right from the selection of the site to the final stage when the birds are sold. The farm should be located at a place where transportation of birds and feed can be handled easily. The entrepreneur should make sure that the following things are available at the farm site before setting up the farm:  

Electricity connection Drinking quality water

4

Includes the cost of electronic fixtures, nylon sheets and o ther farm infrastructure apart from farm equipment, since this usually built-in in any existing poultry farm. 8



8


PROJECT COST

Table 8-1 Project Economics Account Head Machinery & Equipment Total Capital Cost Raw material inventory Upfront Building Rent

Total Cost (Rs) 69,870 69,870 254,250 142,362

Total Working Capital Total Project Cost (Rs)

596,882 728,752

Table 8-2 Project Return Project 43% 3.26 1,238,855

IRR Payback Period (years) NPV (Rs) Table 8-3 Financing Plan Financing Equit y Debt

9 

Rs.

50% 50%

364,376 364,376

KEY KE Y SUC SUCCESS FACTO TORS RS Farm Supervision

Proper technical supervision of the enterprise is the key to the success of a broiler farm. Farm employees should be aware of the feeding and drinking habits of birds. The farm supervisor should be vigilant and should ensure timely feeding and vaccination, so that the birds stay healthy and disease-free. 

Market Information

The entrepreneur should be well aware of the supply and demand of chicken in the city. This will help the entrepreneur to negotiate well the sale price of birds. The price of chicken meat fluctuates tremendously during a year. 

Mortality Losses

Mortality can only be controlled if the farm conditions are hygienic. Mortality losses should be kept below 8% by timely vaccination & medication.




10 THREATS The poultry industry has some inherent issues, which can not be controlled by an individual entrepreneur. Following are some threats faced by this industry: 

Disease Epidemic

Diseases like New Castle are extremely dangerous. They can eradicate the entire bird population, so the birds need to be protected against such type of diseases, by proper vaccination and medication. 

Government Regulations

When the government imposed a ban on marriage dinners, the industry suffered heavy losses at the time of inception of this law. Ban on marriage dinners has reduced chicken consumption by 40%.




11 FINANC FINANCIAL IAL ANAL ANALYSI YSIS S

11.1 Project Cost Cost

Capital Investment Machinery & equipment Furniture & fixtures Office equipment Pre-operating costs Total Capital Costs

Rs. in actuals 69,870 10,000 29,000 23,000 131,870

Working Capital Raw material inventory Upfront building rent Cash Total Working Capital

Rs. in actuals 254,250 142,632 200,000 596,882

Total Investment

728,752

Initial Financing Debt

Rs. in actuals 364,376

Equity

364,376




11.2 Projected Projected Income Income Statement Statement

Income Statement Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Rs. in actuals Year 10

3,960,000 3,490,500 469,500

4,237,200 3,673,950 563,250

4,533,804 3,867,465 666,339

4,851,170 4,071,638 779,533

5,190,752 4,287,099 903,654

5,554,105 4,514,521 1,039,584

5,942,892 4,754,620 1,188,272

6,358,895 5,008,163 1,350,732

6,804,017 5,275,963 1,528,054

7,280,298 5,558,893 1,721,406

General administration & selling expenses Utilities expense Professional fees (legal, audit, etc.) Depreciation expense Amortization expense Mortality

9,501 1,980 10,887 4,600 139,620

10,451 2,119 10,887 4,600 146,958

11,497 2,267 10,887 4,600 154,699

12,646 2,426 10,887 4,600 162,866

13,911 2,595 10,887 4,600 171,484

15,302 2,777 10,887 180,581

16,832 2,971 10,887 190,185

18,515 3,179 10,887 200,327

20,367 3,402 10,887 211,039

22,404 3,640 10,887 222,356

Subtotal Operating Income Earnings Before Interest & Taxes

309,220 160,280 160,280

329,058 234,192 234,192

350,315 316,024 316,024

373,100 406,433 406,433

397,526 506,127 506,127

419,120 620,464 620,464

447,214 741,057 741,057

477,355 873,378 873,378

509,696 1,018,358 1,018,358

544,408 1,176,997 1,176,997

Interest expense Earnings Before Tax

36,160 124,120

37,865 196,327

29,160 286,863

19,256 387,178

7,985 498,142

408 620,056

741,057

873,378

1,018,358

1,176,997

Tax NET PROFIT/(LOSS) AFTER TAX

124,120

196,327

286,863

387,178

498,142

620,056

741,057

873,378

1,018,358

1,176,997

Balance brought forward Total profit available for appropriation Balance carried forward

124,120 124,120

124,120 320,447 320,447

320,447 607,311 607,311

607,311 994,488 994,488

994,488 1,492,631 1,492,631

1,492,631 2,112,687 2,112,687

2,112,687 2,853,744 2,853,744

2,853,744 3,727,122 3,727,122

3,727,122 4,745,480 4,745,480

4,745,480 5,922,477 5,922,477

Revenue Cost of goods sold Gross Profit




11.3 Projected Projected Cash-flow Cash-flow Statement Statement Cash Flow Statement Year 0

Year 2

Year 3

Year 4

Yea r 5

Year 6

Year 7

Year 8

(254,250) (11,886) (266,136)

124,120 10,887 4,600 (325,479) (26,061) (951) 292,300 79,416

196,327 10,887 4,600 (11,392) (28,732) (1,027) 15,825 186,488

286,863 10,887 4,600 (23,581) (31,677) (1,109) 16,740 262,723

387,178 10,887 4,600 (25,232) (34,924) (1,198) 17,713 359,025

498,142 10,887 4,600 (26,998) (38,503) (1,294) 18,750 465,584

620,056 10,887 (28,888) (42,450) (1,397) 19,853 578,062

741,057 10,887 (30,910) (46,801) (1,509) 21,029 693,754

873,378 10,887 (33,074) (51,598) (1,630) 22,283 820,246

Financing activities Change in long term debt Issuance of shares Cash provided by / (used for) financing

364,376 364,376 728,752

(45,326) (45,326)

(63,128) (63,128)

(71,832) (71,832)

(81,737) (81,737)

(93,008) (93,008)

(9,346) (9,346)

-

-

-

-

Investing activities Capital expenditure Cash (used for) / provided by investing

(131,870) (131,870 )

-

-

-

-

-

-

-

-

-

-

330 746

34,090

Operating activities Net profit Add: depreciation expense amortization expense Accounts receivable Raw material inventory Pre-paid building rent Accounts payable Cash provided by operations

NET CASH

123,361

190,891

277,288

372,576

568,716

693,754

820,246

Year 9


Year 1

1,018,358 10,887 (35,389) (56,887) (1,760) 23,619 958,829

958,829

1,176,997 10,887 (37,866) 611,883 23,760 (30,401) 1,755,261

1,755,261



11.3 Projected Projected Cash-flow Cash-flow Statement Statement Cash Flow Statement Year 0

Year 2

Year 3

Year 4

Yea r 5

Year 6

Year 7

Year 8

(254,250) (11,886) (266,136)

124,120 10,887 4,600 (325,479) (26,061) (951) 292,300 79,416

196,327 10,887 4,600 (11,392) (28,732) (1,027) 15,825 186,488

286,863 10,887 4,600 (23,581) (31,677) (1,109) 16,740 262,723

387,178 10,887 4,600 (25,232) (34,924) (1,198) 17,713 359,025

498,142 10,887 4,600 (26,998) (38,503) (1,294) 18,750 465,584

620,056 10,887 (28,888) (42,450) (1,397) 19,853 578,062

741,057 10,887 (30,910) (46,801) (1,509) 21,029 693,754

873,378 10,887 (33,074) (51,598) (1,630) 22,283 820,246

Financing activities Change in long term debt Issuance of shares Cash provided by / (used for) financing

364,376 364,376 728,752

(45,326) (45,326)

(63,128) (63,128)

(71,832) (71,832)

(81,737) (81,737)

(93,008) (93,008)

(9,346) (9,346)

-

-

-

-

Investing activities Capital expenditure Cash (used for) / provided by investing

(131,870) (131,870 )

-

-

-

-

-

-

-

-

-

-

NET CASH

330,746

34,090

123,361

190,891

277,288

372,576

568,716

693,754

820,246

958,829

1,755,261

Cash balance brought forward Cash available for appropriation Cash carried forward

330,746 330,746

330,746 364,836 364,836

364,836 488,197 488,197

488,197 679,088 679,088

679,088 956,375 956,375

956,375 1,328,952 1,328,952

1,328,952 1,897,668 1,897,668

1,897,668 2,591,421 2,591,421

2,591,421 3,411,667 3,411,667

3,411,667 4,370,496 4,370,496

4,370,496 6,125,757 6,125,757

Operating activities Net profit Add: depreciation expense amortization expense Accounts receivable Raw material inventory Pre-paid building rent Accounts payable Cash provided by operations

Year 9


Year 1

1,018,358 10,887 (35,389) (56,887) (1,760) 23,619 958,829

1,176,997 10,887 (37,866) 611,883 23,760 (30,401) 1,755,261




11.4 11.4 Projec Projected ted Balan Balance ce Sheet Sheet Balance Sheet Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9


Assets Current assets Cash & Bank Accounts rece ivable Raw material inventory Pr e-paid bui lding r ent T otal Current Assets

330,746 254,250 11,886 596,882

364,836 325,479 280,311 12,837 983,463

488,197 336,871 309,042 13,864 1,147,974

679,088 360,452 340,719 14,973 1,395,232

956,375 385,684 375,643 16,171 1,733,873

1,328,952 412,682 414,146 17,464 2,173,244

1,897,668 441,569 456,596 18,862 2,814,695

2,591,421 472,479 503,398 20,371 3,587,669

3,411,667 505,553 554,996 22,000 4,494,216

4,370,496 540,942 611,883 23,760 5,547,081

6,125,757 578,807 6,704,564

Fixed assets Ma chinery & equipment Furniture & f ixtures Offic e equip ment T otal Fixed Assets

69,870 10,000 29,000 108,870

62,883 9,000 26,100 97,983

55,896 8,000 23,200 87,096

48,909 7,000 20,300 76,209

41,922 6,000 17,400 65,322

34,935 5,000 14,500 54,435

27,948 4,000 11,600 43,548

20,961 3,000 8,700 32,661

13,974 2,000 5,800 21,774

6,987 1,000 2,900 10,887

Intangible assets Pr e-operation costs Total Intangible Assets TOTAL ASSETS

23,000 23,000 728,752

18,400 18,400 1,099,846

13,800 13,800 1,248,870

9,200 9,200 1,480,641

4,600 4,600 1,803,795

2,227,679

2,858,243

3,620,330

4,515,990

5,557,968

6,704,564

292,300

308,124

324,864

342,577

361,327

381,180

402,210

424,492

448,112

417,711

Liabilities & Shareholders' Equity Current liabilities Accounts pa yable

-

-



11.4 11.4 Projec Projected ted Balan Balance ce Sheet Sheet Balance Sheet Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9


Assets Current assets Cash & Bank Accounts rece ivable Raw material inventory Pr e-paid bui lding r ent T otal Current Assets

330,746 254,250 11,886 596,882

364,836 325,479 280,311 12,837 983,463

488,197 336,871 309,042 13,864 1,147,974

679,088 360,452 340,719 14,973 1,395,232

956,375 385,684 375,643 16,171 1,733,873

1,328,952 412,682 414,146 17,464 2,173,244

1,897,668 441,569 456,596 18,862 2,814,695

2,591,421 472,479 503,398 20,371 3,587,669

3,411,667 505,553 554,996 22,000 4,494,216

4,370,496 540,942 611,883 23,760 5,547,081

6,125,757 578,807 6,704,564

Fixed assets Ma chinery & equipment Furniture & f ixtures Offic e equip ment T otal Fixed Assets

69,870 10,000 29,000 108,870

62,883 9,000 26,100 97,983

55,896 8,000 23,200 87,096

48,909 7,000 20,300 76,209

41,922 6,000 17,400 65,322

34,935 5,000 14,500 54,435

27,948 4,000 11,600 43,548

20,961 3,000 8,700 32,661

13,974 2,000 5,800 21,774

6,987 1,000 2,900 10,887

Intangible assets Pr e-operation costs Total Intangible Assets TOTAL ASSETS

23,000 23,000 728,752

18,400 18,400 1,099,846

13,800 13,800 1,248,870

9,200 9,200 1,480,641

4,600 4,600 1,803,795

2,227,679

2,858,243

3,620,330

4,515,990

5,557,968

6,704,564

292,300 292,300

308,124 308,124

324,864 324,864

342,577 342,577

361,327 361,327

381,180 381,180

402,210 402,210

424,492 424,492

448,112 448,112

417,711 417,711

Liabilities & Shareholders' Equity Current liabilities Accounts pa yable Total Current Liabilit ie s

-

Other liabilities Long term de bt Total Long Term Liabilities

364,376 364,376

319,050 319,050

255,923 255,923

184,091 184,091

102,353 102,353

9,346 9,346

Shareholders' equity Paid-up capital Retained ear nings T otal Equity TOTAL CAPITAL AND LIABILITI

364,376 364,376 728,752

364,376 124,120 488,496 1,099,846

364,376 320,447 684,823 1,248,870

364,376 607,311 971,687 1,480,641

364,376 994,488 1,358,864 1,803,795

364,376 1,492,631 1,857,007 2,227,679

-

-

364,376 2,112,687 2,477,063 2,858,243

364,376 2,853,744 3,218,120 3,620,330

-

364,376 3,727,122 4,091,498 4,515,990

-

-

364,376 4,745,480 5,109,856 5,557,968

-

364,376 5,922,477 6,286,853 6,704,564




12 KE KEY Y ASSU ASSUMPT MPTIO IONS NS Table 12-1:Production Assumptions

Maximum Capacit y Ut ilization Number o f Birds per Flock Number o f Flock s per Year Mortalit y Rate Annual Pro duction (birds) Time required per Flock (days) Lag time between the Flock (weeks) Average weight per bird (kg)

100% 7,500 6 8% 45,000 42 2 1.6

Table 12-2: Economy Related Assumptions

Electricit y growth rate Wage growth rate

10% 10%



12 KE KEY Y ASSU ASSUMPT MPTIO IONS NS Table 12-1:Production Assumptions

Maximum Capacit y Ut ilization Number o f Birds per Flock Number o f Flock s per Year Mortalit y Rate Annual Pro duction (birds) Time required per Flock (days) Lag time between the Flock (weeks) Average weight per bird (kg)

100% 7,500 6 8% 45,000 42 2 1.6

Table 12-2: Economy Related Assumptions

Electricit y growth rate Wage growth rate

10% 10%

Table 12-3: Revenue Assumptions

Sales price( in Rs/kg) Sales price growth rate

55 7%

Table 12-4: Expense Assumptions

DOC (Day Old Chicks) in Rs COGS growth rate Average Feed Requirement/bird/day (kg) Cost of feed ( in Rs/kg) Vaccination Cost per bird Litter Cost per flock

21 5% 0.08 13 5 6,000

Table 12-5: Cashflow Assumptions

Raw Material I nventory (Month’s production) Accounts Receivable Cycle(Days) Accounts Pa yable Cycle(Days)

1 38 39

Table 12-6: Financial Assumptions

Project life (Years) Debt - Equit y Interest rate on long-term debt Interest rate on short term debt Debt t enure (Years) Debt payments per year

10 50%-50% 13% 13% 5 1 15


SMEDA Poultry Farm (7,500 Broiler Birds)

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