2022

BUSINESS PLAN
Aakashey Devi Krishi Tatha
Pashu Palan Firm

Prepared by
Bikram Shrestha
DSM & Company
9823018448
Contents
A. Project Highlights
B. Executive summary
C. Business Overview
D. Objectives of Study
E. Significance of Study
F. Construction of the Organization
G. Vision and Misson
H. Critical Success Factor of Business
I. Market Assessment
J. Demand and Supply Analysis
K. Marketing Strategy
L. Quality Control
M. Technical Aspect.
N. Assumptions
O. Financial Aspects
P. Conclusion and Recommendation
Financial Enclosures

▪ Cost of the Firm

▪ Balance Sheet
▪ Income and Expenditure Statement
▪ Cash Flow Statement
▪ Income Details
▪ Expenditure Details
▪ Repayment Schedule
▪ Schedule of Fixed Assets
▪ Manpower Details
▪ BEP and Profitability Analysis
▪ Details of Furniture, Equipments and Accessories
A. Project Highlights

Project : Aakashey Devi Krishi Tatha Pashu Palan Firm

Registration No : 27/2077/078

Date of Registration : 2077/12/11

PAN no. : 615668305

Date of Pan Registration : 2077/12/18

Department : Melamchi Municipality

Proprietors : 1

Proprietor : Sarita Chalise

Location : Bhotechaur Bhanjyang, Melamchi-01,

Sindhupalchowk

Objective : Animal husbandry, Agriculture

Total Area : 2 Ropanies of land.

B. Executive Summary

Aakashey Devi Krishi Tatha Pashu Palan Firm is incorporated with the main objective of
Vegetable Production and animal husbandry involving in dairy farming, breeding, production of
Cow, buffallo and goats. Animal husbandry is the branch of agriculture concerned with animals
that are raised for Meat, fibre, milk or other products. It includes day-to-day care, selective
breeding and the raising of livestock. And firm also will cultivate different types of vegetables
such as cabbage, Cauli, broccoli, Ginger, mushrooms, Potato, Tomato etc. It has a good stable
market and turnover. Further it has set up its vision, mission goal and objectives with effective
implementation of ideas and plans for growth of its existing business. Presently, it is on under
Construction of the shed and infrastructure for the related farming. It is planning to operate its
business within 2 Ropanies of land. It has approached to financial institution for extension of the
project financially and accordingly fund will be guided as per set goal and objectives, looking
forward towards the achievement of set goal and objectives effective and efficient management
will be set for sustainable growth of business.

Due to good and healthy production of vegetables demand of vegetable consumption is high.
Cultivator has good market with sufficient profit margin.

Operational activities will be handled by trained employees and according farming will be
systematically managed. It has planned strategy to mark its self as good suppliers in market and
will run continuously with effective marketing strategy. With the effective strategy and plan for
running business. The company will be creating end to end supply chain infrastructure, processes
and technologies to make perishable products distribution more efficient and robust

The firm owners have provided the capital to cover the start-up expenses. The company currently
seeks a 5-year agricultural loan to cover the operating expenses and capital expenses for firm.

C. BUSINESS OVERVIEW

Aakashey Devi Krishi Tatha Pashu Palan Firm is involved in production of quality and
affordable healthy and organic vegetables, harvesting a raw milk, animals trading, and meat
targeting consumers all over valley. The practice is systematic, involving controlled storage and
growing up with proper specialization care for farm. The animal husbandry are confined and/or
controlled during the growing process with proper nutrition and medication. The consumption
rate of this business cut across wide divide. It has proposed plan with introducing their product
observing the current scenario of market demand. As Nepal is an agricultural country,
Agriculture and animal husbandry is one of the important occupation of the peoples. Easy for
rearing, less manpower, less investment etc. are some possible causes of high development of
farming. Demand for the goats meat is increasing because of its delicious taste and health
importances. So, people have started working on their own to self motivate.
Fresh milk are highly demanded under School Feeding Schemes, management has been well
coordinated and being managed effectively as compared to the past five years. Fresh milk is
highly demanded due to its nutritive value.
 The firm plans to concentrate on vegetables as its Subsidary product. This includes procuring, growing
and storing potatoes, tomatoes, carrots, romaine lettuce, leeks, red onions, spinach, pumpkins, etc. The
company plans to utilize traditional and more advanced technologies to produce, procure and distribute
organic, free of pesticides products with locally-adapted superior characteristics.

D. Objectives of the study

The objective of the study is to determine the overall viability and feasibility of
implementing the project. Viability and feasibility as used in the context means the
ability of the project to be operated profitably in a positive trend and generate
sufficient funds from its operations to enable it to stand on its own and become a
socially responsible business entity.

E. Significance of the study

 The feasibility study herein can be useful in several ways. It can serve as basis
for its proponent in deciding as to whether or not push with its implementation.
This of course will depend on several things. One is the outlook on the
marketability in its target market. Another is the result of the profitability to be
conducted on the project.

This study can also provide solid indications as to how the project should be
managed from the point of view of the different functional areas of the business.

F. Constitution of the Firm

Aakashey Devi Krishi Tatha Pashu Palan Firm is a registered under Local
government Melamchi Municipality with registration number 27/077/078 as
Private Firm. The Firm is also registered in Inland Revenue Department, Jorpati
having Permanent Account Number 615668305.

S.N. Name of Proprietor Designation

1. Sarita Chalise Proprietor

The expert of the related field will manage the firm. The experts are responsible for development
and replacement of respected equipment as per direction of the Proprietor. It is incorporated with
registered capital of 25 Lakhs. Firm is located at 25 km north east from Kathmandu valley
called Bhotechaur Banjyang ward no. 01, Melamchi, Sindhupalchowk.

Sarita Chalise, resident of Bhotechaur, Melamchi-01, Sindhupalchown has worked in the

agriculture and animal husbandry business for more than 8 years. She is actively engaged in
different other businesses. She has also attended animal husbandry and agriculture related
trainings from the government.

G. VISION AND MISSION

- To produce fresh and organic vegetables, Fresh and healthy raw milk, , healthy and hygienic
meat, generate employment, and create wealth for investor.

MISSION:
-Build a Systematic storage structure facility that is efficient. And rewarding.
- To deliver healthy and fresh milk in the market.
- Plans to utilize traditional and more advanced technologies to produce, procure and distribute
organic, free of pesticides products with locally-adapted superior characteristics.

VALUE PROPOSITION
Dairy farming, milk and vegetable Production for wealth creation.

H. CRITICAL SUCCESS FACTORS OF THE BUSINESS

A. Finance: Fund must be available as when needed according to plan to avoid creating stress
factors which would cost so much in revenue loss

B. Expertise: The milk farming, animal husbandry, vegetable productions all are knowledge-
based home employment of expertise is imperative. Consultancy is paramount. Training and
retraining of staff are sacrosanct no matter how small the level and acquisition of knowledge of
modern trend is a factor to growth.

C. Housing: Proper ventilation and spacing is a critical success factor. Position your house to
give the birds’ maximum ventilation and reduce heat.

D. Biosecurity: Disease entrance and spread are as a result of any form of breach in biosecurity. Foot
bath, car bath, prohibition of unauthorized persons etc.

E. Water: Watering and water source is of great importance. Foul water source or water getting
contaminated in poultry house signifies that the farm will fail.

F. Nutrient: Most farm fail because they wanted to reduce cost of feed by compounding farms
should only venture into self-compounding on ground with available experiment. All nutrients
must be readily available in the market to prevent malnutrition. Wastage of vegetable production
is nutrious food for animal.
G. Sales: vegetables ,milk and animal produced must be sold. Proper marketing with vigorous
advertisement will ensure the product is made available to the target market.

H. Management: Pilfering shrinkages, indulgence, misappropriation is few of the

several epidemic that constantly plaque animal husbandry in Nepal. Workers steal
feed, money and even drugs if they are not properly monitored. Sales agents and
drivers could sell at different prices and report differently. Effective management of
this ends are critical factor.
 I. Administration: At full capacity, Management is operated from proprietor,
when the owner is directly involved in day to day management. Absentee
farming is hazardous. Someone with stake in the venture should give quality
time to it to survive.

J. Market Assessment
It is estimated that around 50 to 60% of total demand of vegetables in
Kathmandu is fulfilled by vegetable production in hilly areas, while
remaining demands are sourced from Terai region, India and China. Due to
High demand of Fresh Vegetable, vegetable production is high and
profitable. Due to lock down transportation of vegetable from India has
decreased and self produced vegetable have its accessible market. The
vegetables are also being sold on local retail shops, people without easy
access to vegetable markets usually purchase from these shops; however,
vegetables are being sold at few big departmental stores, which are mostly
used by upper middleclass people. The tendency of the majority of people is
to find the best market price for the vegetables, for which they are drawn to
places where there is more than one vendor available, so they can compare
for lowest price and quality also

On the other hand, Sale of raw milk is in high demand due to its nutritive
value.
After the duration of one year, animal husbandry would reach its full capacity
of around , 15 buffallos and cows. This would continuously generate stable
yearly revenue of Rs. 40,00,000.
K. Demand and Supply Analysis

Business is depending upon the demand and supply of the respective product. As
the proprietor is doing business before this Company get registered with having
very good public relations and have very good business link in local markets, there
wont be any market problem to the Company. This has decreased in number of
good and standard farm which grow quality product. So there is limited supply.

L. Marketing Strategy

Firm initially market and supply its products to target customers. Firm shall
employ a Marketer at full capacity These customers will be allocated dates. They
either pick up the product from the farm on their dates or have it delivered with
the farm van at a price.

M. Quality Control
Biosecurity measure will be put in place to prevent disease outbreak. Foot
bath for visitors and workers will be put in place at the entrances. All quality
control standards will be adhered to strictly so as to produce a world class
standard. Animals and materials will be kept away from the poultry pens.
Biosecurity training will be mandatory given to attendants and other staff.
N. Technical Aspect
The company is currently seeking contact with different technology vendors
and universities in order to learn about and acquire new hybrids of
vegetables that are hardier and grow faster in our local microclimates. These
and other available species and systems will be constantly tracked.
Currently, the company is conducting research to test certain clay-sand-
manure mixture levels to obtain better, cheaper bedding and agronomic soil
mixtures that are more effective than the standard used in the industry in
Nepal.
The business currently employs three full time employees and four more
people will be employed on a full time basis. A total of five full time jobs will
be created. These people will monitor animal husbandry as well agri-firm
O. Financial Aspects

The financial analysis of the project shows that project is feasible and is highly
profitable during the years of its operation. We have taken certain assumptions to
complete our financial analysis part which are under mentioned.

Basis of Financial projections:

A. 8 Buffallo are bought.

B. Daily 50 Liter milk is sold in market.
C.. Vegetables are seasonal and produced in 2-3 quintal per annum.

Assumptions

The feasibility report has been prepared on the basis of the following assumptions:

1. The Income will be increased by an aggregate of 10 % per year.

2. Inflation rate is assumed to 10 % per annum on expenditure. (Inflation rate as
per NRB for current period is 9.9%)
3. Depreciation has been calculated on Written Down Value method, full
percentage of depreciation is charged whenever property, plant and equipment
is purchased
4. Interest on loan is 5 % p.a.( after government subsidy of 5%)
5. Closing inventory is assumed to be 40-45% of total purchase and includes
livestock.
6. Trade receivable is assumed to be 40% to 45 % of total sales.
7. Projected financial statements are prepared on going concern basis.

Annual Operation Cost & Expenses

The annual projections of cost requirement for the operation of the project for 5
years are given in annexure.

Projected balance sheet The projected balance sheets depict sound position of
state of affairs. It shows sufficient property, plant and equipment to run business,
required working capital to run the business.

Projected income statement

The position of profitability of company is always positive.

Projected cash flow

The cash flow of the Firm is shown in annexure. The cash flow from operating
activities is negative in first projected year due to increase in inventory Position
and positive in all other remaining years. Impact of operating cash flow is also
seen in net cash flow.

Utilization of Proposed Loan Amount

Capital investment : Registered capital 25 Lakh

Amount of Proposed Loan Amount 20 Lakh

 - OD Borrowing 20 lakh

Expansion Plan: worth 35 Lacs (20 lacs Loan +15 Lacs Equity)

Particulars Amount

Building Structure for farm and vegetable storage 12,00,000

- Purchase of cement 225,000

- Purchase of sand 130,000
- Roda dhunga 20,000
- Brick for compound and wall 100,000
- Iron and steel 125,000
- Jasta pata 80,000
- Plywood and wood 50,000
- Wages for carpenter 50,000
- Color and other material 20,000
- Steel fench 85,000
- Wages for construction 50,000
- Plastic and Tirpal for coverage 40,000
- Office equipment 80,000
- Electric item for electricity 20,000
- Furniture and Fixture 125000

Purchasee of live stock 15,00,000

- Purchase of cow 4 @ 150000 600000

- Purchase buffalo 5 @ 180000 900000

Operating Expense 6,50,000

- Purchase of feed material 200000

- Vegitable seeds 15000
- Pesticides and insectisides 35000
- Salary for staff for 1st six month 60000
- Electricity and water expenses 15000
- Staff Wellfare 50000
- Medical Expenses 50000
- Insurance 40000
- Repair and maintenance - 100000
- Printing and stationery 15000
- Registration Expenses 20000
- Miscellaneous Expenses 50000

Reserve cash in hand 1,50,000

Total 35,00,000
P. CONCLUSION

Vegetable Production ,milk production and goat Farming etc farming all these
business are an actively growing business in Nepal. One of the factors that this
firm is being attracted towards farming is due to the high demand on market
and harvesting where they do not require much more initial investment and can
be grown with locally available resources. In fact, the company has to operates
all activities with the bank funded amount (loan) and this farming is quick profit
making. Therefore, it makes easy to repay the due amount.