1

PROJECT REPORT OF M/s CHINTALAPADU KRISHNA DT

Animal Husbandry
Poultry Broiler Farming

Introduction
Poultry meat is an important source of high quality proteins, minerals and vitamins to balance the
human diet. Specially developed varieties of chicken (broilers) are now available with the traits
of quick growth and high feed conversion efficiency. Depending on the farm size, broiler farming
can be a main source of family income or can provide subsidiary income and gainful employment
to farmers throughout the year. Poultry manure is of high fertilizer value which canbe usedfor
increasing yield of all crops.The advantages of broiler farming are

 Initial investment is a little lower than layer farming.

 Rearing period is 5-6 weeks only
 More number of flocks can be taken in the same shed.
 Broilers have high feed conversion efficiency i.e. the amount of feed required for unit
body weight gain is lower in comparison to other livestock.
 Faster return from the investment
 Demand for poultry meat is more compared to sheep/goat meat

2. Sscope for broiler farming and its national importance

India has made considerable progress in broiler production in the last three decades. The broiler
production has sky rocketed at an annual growth rate of about 10% and stands at about 2.3 million
metric tons of chicken meat (FAO 2005). The population of broiler poultry as per 2004-05 census is
199.73 million. Today India is the fifth largest producer of broiler meat in the world. Despite this
achievement the annual per capita consumption in India is only 1600 grams of poultry meat as
against the world average of 5.9 kg of meat.
Recommended per capita consumption of chicken meat by National Institute of Nutrition is 11
Kg.
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Owing to the considerable growth in broiler industry, high quality chicks, equipment, vaccines
and medicines, technically and professionally competent guidance are available to the farmers.
The management practices have improved and disease and mortality incidences are reduced to a
great extent. Many institutions are providing training to entrepreneurs. Increasing assistance from
the Central/ State governments and poultry corporations is being given to create infrastructure
facilities so that new entrepreneurs are attracted to take up this business. Broiler farming has been
given considerable importance in the national policy and has a good scope for further
development in the years to come.

3.Integration in Broiler Farming:

There is a growing trend of integration in broiler farming. In the early nineties, contract farming
for broilers was introduced and in 1995 it spread all over Tamilnadu. Between 1995 and 2000, it
spread to Karnataka. It gathered momentum and spread its wings to Maharashtra, Andhra Pradesh
in the years 2001 & 2002 and after that, it gained inroads into West Bengal and Gujarat. The
spread is due to built in strengths in integration system. Integrators will take care of all aspects of
production, right from raising of grandparent and parent flocks, production of day old chicks for
rearing, manufacturing and supply of concentrate feed, providing veterinary services and
wholesale marketing of birds. Under integration all the previous profit centres of the broiler
industry viz. chick selling, feed selling, hatching, medicine supply, transportation have become
cost centres for the integrators who work as a single entity and distribute the benefits among the
farmer, consumer and the integration company themselves. Under contract farming, poultry
farmers invest only for poultry sheds / equipment on their existing land. The Integrator supplies
chicks, feed, medicines, provides technical guidance and takes entire production after 5-6 weeks.
The contract farmers are paid growing charges as per agreed rates. This has eliminated the
middlemen. Farmer is benefiting from the lesser investment and production cost and also higher
productivity which is achieved as a result of integration. However, the farmer may be at a
disadvantage if the number of batches supplied in the year by the integrator is less.

4. Financial assistance available from Banks/NABARD for broiler farming

For poultry farming schemes with very large outlays detailed project reports are required to be
prepared. The items of finance would include construction of broiler sheds and purchase of
equipment, cost of one day old chicks, feed, medicine and labour cost for the first cycle. Cost
towards land development, fencing, water and electricity, essential servant’s quarters, godowns,
transport vehicles, broiler dressing, processing and cold storage facilities can also be considered
for providing loan. Cost of land is usually not considered for loan.

.
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Annexure I

Format for preparation of Project report

Poultry - Commercial Broiler Farm

1. GENERAL
i) Nature and objectives of the proposed scheme
ii) Details of proposed investments
iii) Specification of the project area
iv) Name of the financing bank branch
v) Status of beneficiary: (Individual)/Partnership/ Company/Corporation/ Co-
operative Society/Others
vi) Borrowers profile
(a) Capability
(b) Experience
(c) Financial soundness
(d) Technical/Other special qualifications
(e) Technical/Managerial Staff and adequacy thereof

2. TECHNICAL ASPECTS:
a) Location, Land and Land Development:
i) Location details of the project
ii) Total area of land and it's cost
iii) Site map
iv) Particulars of land development, fencing, gates etc.

b) Civil Structures:
Detailed cost estimates along with measurements of various civil structures
- Broiler Sheds
- Store room
- Dressing room
- Office room
 4
- Quarters for staff
- Others

c) Equipment/Plant and machinery:

(i) Feeders
(ii) Waterers
(iii) Generator
(iv) Feed grinder and mixer
(v) Debeaker
(vi) Vaccinator
(vii) Fridge/Deep Freezer
(viii) Dressing equipment if necessary
(ix) Truck/van/jeep (Price quotations for the above equipment)

d) Housing:
i) Type of housing - Deep Litter/Slat/Environment controlled) DEEP LITTER
SYSTEM
ii) Area required (sft./bird) 1 sft per bird

e) Birds:
i) Proposed strain
ii) No. of birds to be purchased
iii) Source of purchase
iv) Cost of birds (Rs. per bird)
v) Vaccination of purchased birds
vi) Proposed programme of replacement

f) Production parameters:
i) Average body weight (kg.)
ii) Feed efficiency (kg. of feed/ kg body weight gain)
iii) Mortality (%)

g) Flock Projection Chart:

year Batch Shed Flock Purchase Weeks Sale date Balance

size no no To weeks
date grow
2010-11 5,000 1 1 01-07-2010 7 20-08-2010 0
2010-11 5,000 1 2 29-08-2010 7 17-09-2010 0
2010-11 5,000 1 3 27-09-2010 7 15-10-2010 0
2010-11 5,000 1 4 24-10-2010 7 12-11-2010 0
2010-11 5,000 1 5 22-11-2010 7 09-12-2010 0
2010-11 5,000 1 6 20-12-2010 7 08-01-2011 0
total 5,000 6 42 6
2011-12 5,000 6 42 6
2012-13 5,000 6 42 6
2013-14 5,000 6 42 6
2014-15 5,000 6 42 6
 5

h) Feeding:
i) Source of availability - Purchased or own feed manufacturing - purchased
ii) If purchased
a) Place of purchase - srinivasa hatcheries
b) Brand
c) Cost (Rs./kg)
- Starter
- Finisher
iii) If manufactured on farm - NOT APPLICABLE
a) Capacity of feed grinder and mixer
b) Source of raw materials
c) Feed formula
d) Cost of production (Rs./kg)
- Starter
- Finisher
iv) Requirement (kg/bird)
- Starter
- Finisher
i) Veterinary aid
i) Source
ii) Location
iii) Distance (km.)
iv) Availability of labour and other staff
v) Type of facilities available
vi) If own arrangements are made
a) Employed a veterinary doctor/stock man /consultant
b) Periodicity of visit
c) Amount paid (Rs.)
vii) Expenditure per bird per cycle (Rs.)

j) Electricity
i) Source SEB / Other - APSEB power is available
ii) Approval from electricity board - obtained and power connection given
iii) Connected load 5 kva
iv) Problems of power failure - 3 hours a day in the morning 9 to 12 pm and 3 hours in
the event from 3 pm to 5 pm is expected.

v) Arrangements for generator - installed

k) Water
i) Source - ground water
ii) Quality of water - fresh and good without any contamination
iii) Availability of sufficient quantity for drinking and cleaning - available
iv) If investment has to be made, type of structure, design and cost – no investment needed
l) Marketing of broilers
i) Source of sale - through srinivasa hatcheries, gannavaram (vencobb)
ii) Place of disposal - at our source or shed
iii) Distance (km) srinivasa hatcheries gannavaram to our shed is 65 kms
 6

iv) Basis of payment (number or weight) number only

v) Price realised - (Rs. per kg live weight or live bird) live bird
vi) Periodicity of payment - within 3 days

m) Marketing of other products

i) Manure - Qty./bird, price per unit (Rs./Q) - fish ponds people will come and buy at their
risk
ii) Empty gunny bags - Number and cost/bag - will be sold ex-our shed

n) Beneficiary's experience - had experience in the filed of marketing for the last 4
years

o) Comments on technical feasibility - broiler has good profitability and the scheme is
technically feasible

p) Government restrictions, if any - no

2. FINANCIAL ASPECTS :

OPERATING RESULTS form-II

particular 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
s
Gross 24,49,20 29,34,20 29,34,20 29,34,20 29,34,20 29,34,20 29,34,20
revenue 0 0 0 0 0 0 0
Profit 2,81,067 3,18,298 3,53,937 3,88,294 4,11,127 4,15,649
before 1,81,031
taxes
% of 13.52% 10.43% 9.21% 8.29% 7.55% 7.13% 7.05%
profit
before
tax
CAPITAL COST STATEMENT
s.no PARTICULARS TOTAL BANK BORROWR’S
COST LOAN STAKE @
@75% 25%
01 Land Own x X
02 Buildings - borewell cost
03 Poultry shed of size 5,26,240 3,94,680 1,31,560
184x22ft=4048sft @ 130 per sft
04 Admn bldg/store room/elec. expn 7,53,250 5,64,937 1,88,313
05 Plant and machinery
06 Cost of pipe line and pump 30,000 22,500 7,500
07 Cost of overhead tank
08 Cost of feed plant and mixer/grinder 1,25,000 93,750 31,250
09 Refrigerator cost 5.000 3,750 1,250
10 Poultry equipment cost @ 20/bird 2.00.000 1,50,000 50,000
11 Cost of electrical installations 33,000 24,750 8,250
12 Overhead cost salaries 2 months 13,000 9,750 3,250
13 Growing cost to be capitalized 73,250 54,938 18,3
:Cost of birds @ 14..65 for 5,000
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14 Feed cost @ 3.8 kg per bird for 92,000 69,000 23,000
5000 @ 18,40or 920 rupees per
50kg bag
15 Cost of medicines @ 3 per bird 30,000 22,500 7,500
Total 18,80,740 14,10,555 4,70,185

SALE OF BROILERS
YEA BATCH NO. OF TOTAL MORTALIT NO. BIRDS PRIC TOTAL
R SIZE BATCHE BIRDS Y LEFT WEIGH E INCOM
S % T PER E
IN YEAR IN KGs KG
2010- 1,000 5 25,000 3% 2 KG 75
11 24,25 36,37,50
0 0
2011- 5,000 6 30,000 3% 2 KG 75
12 29,10 43,65,00
0 0
2012- 5,000 6 30,000 3% 2 KG 75
13 29,10 43,65,00
0 0
2013- 5,000 6 30,000 3% 2 KG 75
14 29,10 43,65,00
0 0
2014- 5,000 6 30,000 3% 2 KG 75
15 29,10 43,65,00
0 0
2015- 5,000 6 30,000 3% 2 KG 75
16 29,10 43,65,00
0 0
2015- 5,000 6 30,000 3% 2 KG 75
17 29,10 43,65,00
0 0

b) sale of gunny bags (feed supply bags) and excreta as manure to fields and fish ponds
year Total Total feed Total Price Gunny Mnnure Manure Total
Birds consumption bags Per Bags Per Income income
In tonnes bag income Bird @
1.50ps

2010-11 6,000 114 1,520 Rs. 10 15,200 9,000 9,000 24,200

2011-12 6,000 114 1,520 Rs. 10 15,200 9,000 9,000 24,200
2012-13 6,000 114 1,520 Rs. 10 15,200 9,000 9,000 24,200
2013-14 6,000 114 1,520 Rs. 10 15,200 9,000 9,000
24,200
2914-15 6,000 114 1,520 Rs. 10 15,200 9,000 9,000 24,200
2015-16 6,000 114 1,520 Rs. 10 15,200 9,000 9,000 24,200
2016-17 6,000 114 1,520 Rs. 10 15,200 9,000 9,000 24,200
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COST OF PRODUCTION STATEMENT

A) cost of feed and medicines 50kg bag Rs. 920/-
year Total Feed/per Total Feed Total cost Medi- Total Grand total
birds Bird Feed kgs cost @ of feed Cines Medici (feed+
@ 5,000 Rs.ps Per kg Cost @ nes medicines)
unit/batch Rs.ps 3 per cost Rs.
for 6 bat bird Rs
ches p.a
2010- 30,000 3=80 1,14,000 18=40 20.97.600 90,000 90,000 21,87,600
11
2011- 30,000 3=80 1,14,000 18=40 20,97,600 90,000 90,000 21,87,600
12
2012- 30,000 3=80 1,14,000 18=40 20,97,600 90,000 90,000 21,87,600
13
2013- 30,000 3=80 1,14,000 18=40 20,97,600 90,000 90,000 21,87,600
14
2014- 30,000 3=80 1,14,000 18=40 20,97,600 90,000 90,000 21,87,600
15
2015- 30,000 3=80 1,14,000 18=40 20,97,600 90,000 90,000 21,87,600
16
2016- 30,000 3=80 1,14,000 18=40 20,97,600 90,000 90,000 21,87,600
17
b) cost of chiks or chick purchases cost
year Batch Total Total chicks Price per chick Total cost
size batches Rs Rs
2010-11 5,000 6 30,000 . 14=65 4,39,500
2011-12 5,000 6 30,000 14=65 4,39,500
2012-13 5,000 6 30,000 14=65 4,39,500
2013-14 5,000 6 30,000 14=65 4,39,500
2914-15 5,000 6 30,000 14=65 4,39,500
2015-16 5,000 6 30,000 14=65 4,39,500
2016-17 5,000 6 30,000 14=65 4,39,500

c) salaries/ wages and other misc., like power and fuel (overhead costs)
Year Salaries and/or wages Power and fuel Total cost Rs
2010-11 72,000 6,000 78,000
2011-12 72,000 6,000 78,000
2012-13 72,000 6.000 78.000
2013-14 72,000 6.000 78,000
2014-15 72,000 6,000 78,000
2015-16 72,000 6,000 78,000
2016-17 72,000 6,000 78,000

DEPRECIATION STATEMENT
YEAR W.D.V. BEGN DEPR % DEPR AMT W.D.V END
2010-11 14,04,490 10% 1,05,336 (9 mt) 12,99,154
2011-12 12,99,154 1,29,915 11,69,239
2012-13 11,69,239 1,16,923 10,52,316
2013-14 10,52,316 1,05,231 9,47,085
2014-15 9,47,085 94,708 8,52,377
2015-16 8,52,377 85,237 7,67,140
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2016-17 7,67,140 76,714 6,90,426

PROFIT AND LOSS ACCOUNT (Rs. Iin lakhs

DESCRIPTION 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
1 INCOME
Sale of broilers 36.37 43.65 43.65 43.65 43.65 43.65 43.65
Sale of gunnies 0.24 0.24 0.24 0.24 0.24 0.24 0.24
and manure
TOTAL 36.61 43.89 43.89 43.89 43.89 43.89 43.89
2 EXPENDITURE
Chicks cost 4.39 4.39 4.39 4.39 4.39 4.39 4.39
Feed and 21.87 21.87 21.87 21.87 21.87 21.87 21.87
medicine
Salaries and 0.39 0.39 0.39 0.39 0.39 0.39
Overheads
Interest 0.56 0.50 0.36 0.23 0.08 0.00 0.00
Depreciation 1.05 1.29 1.16 1.05 0.94 0.85 0.76
Admn. Expn 0.49 0.58 0.58 0.58 0.58 0.58 0.58
TOTAL 28.75 29.02 28.75 28.51 28.25 28.08 27.99
3 Net credit
4 Profit before 7.86 14.87 15.14 15.38 15.40 15.57 15.66
Tax
5 Provision for 2.64 5.00 5.09 5.17 5.18 5.24 5.27
taxation @
33.66%
6 Net profit 5.25 9.87 10.05 10.21 10.22 10.33 10.39

D EBT SERVICE COVERAGE RATIO

description 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
COVER
Profit after tax 5.25 9.87 10.05 10.21 10.22 10.33 10.39
Depreciation 1.05 1.29 1.16 1.05 0.94 0.85 0.76
Prel.expn
Interest loan 0.56 0.50 0.36 0.23 0.08
Total 6.86 11.66 11.57 11.49 11.24
SERVICE
Term loan
repayment 0 1.27 1.27 1.27 1.27
Interest 0.56 0.50 0.36 0.23 0.08
Total 0.56 1.77 1.63 1.50 1.35

Dscr % 12.25% 6.58% 7.09% 7.66% 8.32%

Average DSCR 8.38%

DEBT EQUITY RATIO (rupees in lakhs)
description 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
EQUITY 6.68 6.68 6.68 6.68 6.68 6.68
 10
Capital
Reserves 5.25 9.87 10.05 10.21 10.22 10.33

total 11.93 16.55 16.73 16.89 16.90 17.01

DEBT
Repayment 0 2.54 2.54 2.54 2,.54 5.08
Term loan
DE R% 6.51 % 6.58% 6.64% 6.65% 3.34%

PROJECTED ROFITABILITY ANALYSIS (Rs. In lakhs)

Sl Particulars 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
no
Operating 80% 80% 80% 80% 80% 80%
capacity
No. of batches 1 6 6 6 6 6
Sales – cost of Rs.150 Rs.155 Rs.160 Rs.165 Rs.170 Rs.165
bird after 45
days 3.00 37.20 38.40 39.60 40.80 42.00
5,000 birds @
80%
Other income 0.01 0.03 0.03 0.03 0.03 0.03
Sale of excreta
Total 3.01 37.23 38.43 39.63 40.83 42.03
A Cost of feed 2.22 30.66 30.66 30.66 30.66 30.66
B Labour & 0.39 0.39 0.39 0.39 0.39 0.39
supervision
C Power and 0.05 0.75 0.77 0.79 0.81 0.83
utilities like
husk

D Medicines 0.05 0.30 0.32 0.33 0.34 0.36

E Repairs &
maintenance
F Depreciation 1.05 1.29 1.16 1.05 0.94 0.85
Total cost of 3.76 33.39 33.30 33.22 33.14 33.09
production
G Administrative 0.49 0.58 0.58 0.58 0.58 0,58
expenses
H Selling expenses
I Financial expn 0.56 1,77 1.63 1.50 1.35
EMI
Int on termloan
Int on W/c
Prel & pre-op
Total expenses 4.81 35.74 35.51 35.30 35.07 33.67
Operating profit -1.80 1.49 2.92 4.33 5.76 8.36
Prov. For 0 0.50 0.98 1.45 1.93 2.81
tax@33.66%
Profit after tax 0 0.99 1.94 2.88 3.83 5.55
Less;divi/drawing 0 0.99 1.44 1.44 1.44 1.44
Retained profit 0 0 0.50 1.44 2.39 4.11
 11
Depreciation 1.05 1.29 1.16 1.05 0.94 0.85
Prel expn
Gross cash
accruals
Less dividend
Net cash accrual -0.75 0 -0.66 0.39 1,45 3.26

WORKING CAPITAL REQUIREMENT

Particulars days 2012-13 2013- 2014- 2015-16 2016-17 2017- 2018-19
14 15 18
A) cost of feed 30 2.22 30.66 30.66 30.66 30.66 30.66
B) work in process 7 2.80 4.45 5.42 5.46 6.29 7.11
C) stores & spares 60 0.06 0.77 0.77 0.77 0.77 0.77
D)sundry debtors 7 1.52 1.64 1.74 2.30 1.88 2.02
Total current assets 6.60 37.52 38.59 39.19 39.60 40.56
Sundry creditors
Net current assets 6.60 37.52 38.59 39.19 39.60 40.56
Margin for W/c 1.65 9.38 9.64 9.79 9.90 10.14
@25%
Bank borrowing 5.00 5.00 5.00 5.00 5.00 5.00

PROJECTED BALANCE SHEET ………. (Rupees in lakhs)

years beginning 2012- 2013- 2014- 2015- 2016- 2017- 2018-19
13 14 15 16 17 18
Liabilities
capital 6.68 6.68 6.68 6.68 6.68 6.68
Reserves/profit 5.25 9.87 10.05 10.21 10.22 10.33
Secured t/l 3.73 2.46 1.19 1.19
And W/c
creditors 1.39
total 17.05 19.01 17.92 18.08 16.90 17.01
years beginning 31-3- 31-3- 31-3- 31-3- 31-3- 31-3-
2010 2011 2012 2013 2014 2015
Assets 12.79 11.74 10.45 9.29 8.24 7.30
Fixed assets
depreciation 1.05 1.29 1.16 1.05 0.94 0.85
Net block 11.74 10.45 9.29 8.24 7.30 6.45
inventory 5.11 5.11 5.11 5.11 5.11 5.11
Stores&spares
Cash balance 0.39 1.45 3.20
Debtors 3.45 3.52 4.34 3.04 2.25
Prel. expenses 0.20
Total current
assets
Total 17.05 19.01 17.92 18.08 16.90 17.01
DEBT SERVICE COVERAGE RATIO
 12
YEARS 2012-13 2013-14 2014-15 2015-16 2016-17 2017- 2018-19
18
COVER
Profit after
tax 5.25 9.87 10.05 10.21 10.22 10.33
Depreciation 1.05 1.29 1.16 1.05 0.94
Prel.expn 0.20
Interest on
term loan and 0.56 1.77 1.63 1.50 1.35
working
capital

total 5.81 12.89 12.97 12.87 12.62 11.27

SERVICE
Term lon emi
Interest on t/l 0.56 1.77 1.63 1.50 1.35
+ w/c
total 10.37% 7.28% 7.95% 8.58% 9.34%
11.27%
DSCR % Average DSCR = 9.13%

SENSITIVITY ANALYSIS
YEARS 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
DSCR 2.05 0.72 1.02 1.40 1.91 2.89 1.66
If cost 1.95 0.69 0.97 1.33 1.82 2.75 1.41
increased
by 5%
If selling 1.95 0.69 0.97 1.33 1.82 2.75 1.41
price
reduced by
5%
DSCR if 1,85 0.65 0.92 1.26 1.72 2.61 1.50
cost
increased
by 5% &
selling
price
reduced by
5%

DEBT EQUITY RATIO

years 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
EQUITY 6.68 6.68 6.68 6.68 6.68 6.68
Capital/equity
Reserves 5.25 9.87 10.05 10.21 10.22 10.33

total 11.93 16.55 16.73 16.89 16.90 17.01

DEBT
 13
Repayment of
Term loan
0.56 1.77 1.63 1.50 1.35
DE R% 21.3% 9.35% 10.26% 11.26% 12.51%

i) Project Cost

Sr. No. Item Physical Unit and Specification Cost (Rs.)

Capital Costs

Land and bldgs.

Machinery and spares

Total Capital Costs(A)

Recurring Costs

Admn.expenses

Feed cost and medicines

Total Recurring Costs (B)

Total Project Cost (A+B)

ii) Down payment/margin/subsidy (Indicate source & extent of subsidy)

iii) Financial viability ( comment on the cash flow projection on a farm model / unit and enclose
the same ) Particulars :
a) Internal Rate of Return (IRR):
b) Benefit Cost Ratio (BCR) :
c) Net Present Worth (NPW) :
iv) Financial position of the borrowers (to be furnished in case of corporate bodies/partnership
firms)
a) Profitability ratio
i) Gross Profit ratio
ii) Net Profit ratio
b) Debt equity ratio
c)Whether Income tax & other tax obligations are paid upto date
d) Whether audit is upto date (enclose copies of audited
financial statements for the last three years)
v) Lending Terms :
 14
a) Rate of interest
b) Grace period
c) Repayment period
d) Nature of Security
e) Availability of Government guarantee wherever necessary

4. INFRASTRUCTURE FACILITIES:
a) Availability of technical staff with bank/implementing authority for monitoring
b) Details of
i) technical guidance
ii) training facilities
iii) Government support/ extension support
c) Tie-up arrangements with marketing agencies for loan recovery :
d) Insurance : Type of policy, Periodicity, Rate of premium

Annexure II

ECONOMICS Of BROILER UNIT

A. Project Cost

Capital Cost

Construction of shed 120000

Cost of equipment 16000

Total 136000

Recurring Expenditure

Cost of day old chicks 21000

Cost of feed 57222

Medicines, labour, miscellaneous charges 8670

Insurance of birds 525

Insurance of sheds and equipment 687

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Total 88104

Grand Total (A+B) 224104

or say 224000

Margin (15%) 33600

Bank Loan 190400

B. Techno Economic parameters

Number of birds 1000

Batch strength 1000

Birds purchased per batch 1050

Birds considered for recurring expenditure 1020

Birds considered for selling 1000

Floor space per bird ( s.ft) 1

Cost of construction of shed (Rs. per sft) 120

Cost of equipment (Rs. per bird) 16

Cost of day old chick (Rs. per bird) 20

Feed requirement per bird ( Kg) 3.3

Cost of feed (average price Rs. per kg) 17

Medicines, vaccines, labour and misc. charges 8.50

Insurance per bird (Rs. per bird) 0.50

Insurance of sheds and equipment (Rs. per 5.05

Rs.1,000/-)

Live weight of bird (Kg per bird) 1.6

 16

Sale price (Rs. per kg) 60

Value of manure per bird sold (Rs. per bird) 0.50

Sale price of gunny bags (Rs. per bag) 10

Margin (%) 15

Interest on bank loan (% p.a) 12

Rearing period 6 weeks

Cleaning period of shed 2 weeks

Flock Chart

Years 1 2-8

No. of batches 7 7

Rearing weeks 40 42

Batches sold 6 7

C. Income and Expenditure Statement

Years 1 2-7 8

Income

Sale of birds 576000 672000 672000

Sale of manure 3000 3500 3500

Sale of gunny bags 2992 3142 3142

Total 581992 678642 678642

Expenditure

Cost of chicks 147000 147000 147000

 17

Cost of feed 381480 400554 400554

Cost of medicines & misc.

57800 60690 60690
charges

Insurance of birds 3675 3675 3675

Insurance of sheds and

687 687 687
equipment

Total 590642 612606 612606

Surplus 79454* 66036 66036

* Capitalised recurring expenditure excluded while arriving at the surplus

D. Calculation of NPV, BCR & IRR

Years 1 2-7 8

Capital Cost 136000

Recurring Cost 590642 612606 612606

Total Costs 726642 612606 612606

Income 581992 678642 678642

Residual value of shed 72000

Total Benefit 581992 678642 750642

Net Benefit -144650 66036 138036

Disc cost at 15% DF 2848122

Disc benefit at 15% DF 2984778

NPW at 15% DF 136656

BC Ratio 1.05

IRR 43.77%
 18

E. Repayment Schedule

Year Loan Gross surplus Interest Principal Total Net surplus

repayment

1 190400 79454 22848 24824 47672 31782

2 165576 66036 19869 19753 39622 26414

3 145823 66036 17499 22123 39622 26414

4 123700 66036 14844 24778 39622 26414

5 98922 66036 11871 27751 39622 26414

6 71171 66036 8541 31081 39622 26414

7 40090 66036 4811 40090 44901 21135