Cover Letter

FRNDS CHICKS Environment Controlled Shed

Date: 19-May-2015

Dear Sir,

APPROVAL OF PROJECT PROPOSAL

By referring to the above matter, we would like to present the Project Proposal document for
FRNDS CHICKS Environment Controlled Shed

The main purpose for this proposal is to control of every factors which affects on the chicks or
birds like temperature pressure humidity mortality morbidity feeding etc. we can control our
extra expenditures. We can increase our production and efficiency we hope that you can go
through this document and leave your signature if you agreed with the plan. Please notice us for
any modification.

Your cooperation is really appreciated.

Thank you.

Yours Sincerely,

Project Manager Names

Intizar Umar
Shahid Mehmood
Introduction

The poultry 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. Broiler meat is the cheapest source of animal protein available
in the country. The time required for rearing broiler birds is lesser than that for large animals. The
consumption of white meat is increasing due to growing health consciousness in the masses. Broiler
farming is a profitable venture due to continuous increasing demand of the meat in the market. Annually,
seven flocks of birds will be reared on the same premises of the farm. The broiler birds are sold to traders
and the whole sellers markets in the urban areas. Sometimes birds can also be sold directly to the
shopkeepers in the urban markets.

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.

The proposed project contemplates to set up FRNDSCHICKS Environment Controlled Shed Dunya pur
road Kehror Pakka District Lodhran. The annual rated capacity is 432,000 Kg of meat. The proposed
project has latest imported machinery “XINFUTAI poultry control shed equipment “from China but it is
directly purchased from supplier “Elite enterprises” through Lahore and locally made building structure.

LOCATION:

The proposed project contemplates to set up FRNDS CHICKS Environment Controlled

Shed Dunya pur road Kehror Pakka District Lodhran. The target market is Kehror Pacca City. The area of
the project is 1 Acre.

The proposed project site enjoys the benefits of;

1) Easy availability of raw material

2) Quick access to main road.

3) Sources of power, water, fuel etc.

4) Availability of Transport and modern Communication systems.

5) Availability of Skilled and Un-Skilled labor.

6) Free from environmental hazards like water logging and salinity.

7) Proximity to buyers
ESTIMATED PRODUCTION:

Chicks 2015 2016 2017

Total Production Capacity 100% 90% 95% 100%
Production
Total Production Capacity '000 480 432 456 480

ESTIMATED COST OF PROJECT:

Project Cost
Description Amount '000’
Land & Land Development 1,965
Building & Civil Works 4,883
Machinery 3,352
Furniture & Fixture 125
Pre-Production Expenses 120
Working capital reqd. 5,746
Cost of Project 16,191
Contingencies 10% 1619

Total Fixed Cost 17,810

Initial Net Working Capital 4,000
Total Cost of Project 21,180

MEANS OF FINANCE:

Means of Finance
Amount '000'
Debt 60%
MCB bank loan
Total Debt 12,708
Equity 40% 8472
Total Debt & Equity 20180
NAME OF CIVIL CONTRACTOR: NAME OF Legal Advisor:

Mr. Irfan basra MR. Abid Hafeez;

Contact # 0321-7342246 Advocate high court

Main bazaar Kehror pacca. Contact # 0301-8485065

Environmental Controlled Shed

STRENGTHS:
Environmental Controlled Shed has various strengths and they are as follows:
 Growth potential in small business
 Government role and support
 Develop training program for Poultry Farmers
 Meet large demand of meat per year at cheaper prices
 Less chances of loss in food industry supply
 Higher productivity than manual poultry farms
WEAKNESS:
The weaknesses of Environmental Controlled Shed are as follows:
 Inability in Adoption of new vaccines
 High cost of raw material
 Huge Investment is required
 Poultry Diseases
 Unhygienic condition
 Lack of trained worker
 To many competitors already exists
OPPORTUNITIES:
Environmental Controlled Shed has various opportunities and they are as follows:
 Scope for frozen company
 Very Less control sheds already existing in this area
 Advantage for small business person
 Increasing number of restaurants
 Continuous increase in demand of meat in market
 Sales price are reasonable
 Production on large scale can maximize profit
THREATS:
The threats of Environmental Controlled Shed are as follows:
 Effect of change in the government regulation.
 Bird Flu
 Present crisis
 Continuously too much variation in sales prices
 Energy crise
 Fluctuations in DOC prices
TECHNOLOGY INVOLVED:

The Machinery which is used for FRNDSCHICKS Environmental Control Shed is Foreign Machinery
which imports from china and we directly purchased it from Elite enterprises Lahore (Supplier).

Description Qty Cost /Item Rs. '000'

Feed Hooper 1 85,000 85

Cooling Pad 4 30,200 121

Electric Moter 1HP 25 7,310 182

Generator 25 KV 1 780,000 780

Transformer 25 KV 1 370,500 370

Winch 5 5,912 30

Cone Fan Exhaust 15 21,000 315

Feed Line 4 85,680 343

Water Line 5 60,235 301

Water Tank 1500 liter 3 9,300 27

Environment Controller 1 239,000 239

Brooder 2 201,327 403

Regulator 3 6,310 19

Penal Board 2 7,330 15

Alarm Box 1 4,850 5

Pressure Machines 2 32,615 65

Main Switch 1 2,810 3

Total Cost of Machinery & 3,303

Equipment
Erection & Installation 2% 67

Total Machinery & Equipment Required 3,371

HUMAN RESOURCE REQUIREMENT:

S.No. Types of Staff Required Salary Per Month Salaries for Year

1 General Manager 1 0 owner

2 Accountant 1 12,000 144,000

3 Supervisor 1 11,000 132,000

4 Doctor 1 20,000 240,000

5 Workers 8 7,000 672,000

6 Electrician 1 9,000 108,000

7 Cook 1 7,000 84,000

8 Sweeper 2 4,000 96,000

9 Security Guard 1 6,000 72,000

TOTAL 15 1,440,000