PROJECT REPORT

OF

BEE KEEPING

Prepared by:

THE NATIONAL INSTITUTE FOR ENTREPRENEURSHIP AND

SMALL BUSINESS DEVELOPMENT (NIESBUD)
Head Office : A- 23, sector 62 , Noida -201309 (U.P)
Telefax: 0120-4017039 , www.niesbud.nic.in
Regional Office: NSTI Campus, Green Park Colony, Niranjanpur
PO: Majra, Dehradun (Uttarakhand)-248171
Telefax: 0120-4017039
www.niesbud.nic.in
 1

PROJECT HIGHLIGHTS

PROPRIETOR : XXXXXX
ADDRESS OF THE PROPRIETOR : VILLAGE ......... POST- .............
DIST............ STATE.................
CONSTITUTION : PROPRIETORSHIP
CATEGORY OF UNIT : MICRO UNIT
FATHER NAME : XXXXXX
DATE OF BIRTH : XX-YY-ZZZZ
CATEGORY OF THE PROPRIETOR : XXXXXX
QUALIFICATION : XXXXXX
LOCATION OF UNIT : XXXXXX

PROPOSED PROJECT : BEE KEEPING

NAME OF SCHEME : PRIME MINISTER’S EMPLOYMENT
GENERATION PROGRAMME
UNIT (OWN/RENTED) : OWNED/RENTED

(A) TOTAL COST OF PROJECT : Rs.20,00,000.00

(1) Fixed Capital Rs.15,00,000.00
(2) Working Capital Limit Rs. 5,00,000.00

(B) MEANS OF FINANCE : Rs. 20,00,000.00

(1) Term Loan for Machinery Rs. 14,00,000.00

(2) Working Capital Limit Rs. 5,00,000,00
(3) Promoter’s Contribution Rs. 1,00,000.00
SUBSIDY UNDER PMEGP : Rs. 7,00,000.00

EMPLOYMENT POTENTIAL : 21 PERSON

NORMAL WORKING HOUR : 8 HOUR

INTRODUCTION:-
Beekeeping plays an important role in the sustainable agriculture as it
contributor significantly for diversification of agriculture. Beekeeping is an
interesting hobby, an ideal agro-based subsidiary enterprise, providing
supplementary and sometimes major source of income to the farmers, especially
to the small farmers. It is an ideal, eco-friendly and non-land based rural
enterprise, which does not tax the farm resources and provide sustainable
livelihood to the rural people. the returns in the form of money and mental
satisfaction are highly gratifying. Beekeeping is an asset as honey bees help in
increasing crop yields through pollution and gather nectar to produce honey and
wax. It is a well considered view that the income derived by increased crop yield
due to beekeeping is quite substantial.

PROMOTER & MANAGEMENT:-

Sh./Smt.XXXX S/W/O Sh.XXXXX , Village, XXX, Post-XXXX, Distt- XXXXX. The
promoter is reported to have good financial standing presently. The Promoter is
actively associated with the implementation of the project. Promoter is over all
in charge of the working of the unit.

MARKET AND DEMAND:-

Beekeeping can be a profitable occupation in areas with good floral pasturage.
Possibility for the development beekeeping in India is tremendous due to its
diverse environment and inexhaustible floral resources obtained from natural
vegetation and cultivated crops. According to recent statistics, about 50 million
hectares of land is under the cultivation of oilseeds, pulses, orchards and other
crops useful to bees and benefitted by bee pollination. In addition, there is about
60 million hectors of forest area with beekeeping potential. This vast area of
agriculture and forest may easily sustain at least one crore bee colonies. Bee
keeping can profitably be pursued by men, women and children. By farmers,
orchardists, and by those who are landless or underemployed. Bee hives can be
kept to the backyard or on house tops. A subsistence farmer can get higher
income from bee keeping than from other avocations. Those who have the time
and interest can manage a numb er of beehives and make beekeeping a
profitable enterprise by selling the surplus honey and wax. Several people in a
village or group of villages may join, together and start a cooperative, generating
the income, smokers, extractors and containers, as well as the processing of
honey and bee wax can be done locally.
MAJOR BENEFITS OF THE PROJECT:-
I. Easy availability of material.
II. Job opportunity to local people.

FURNITURE, FIXTURES ETC.:-

The total estimated cost of required Furniture & Fixtures include Electricity
Fittings would be Rs.- 75,000/-.
PRELIMINERY EXPENSES.:-
The total estimated cost of required Furniture & Fixtures include Electricity
Fittings would be Rs.- 25,000/-.
PLANT, MACHINERY AND EQUIPMENTS:-
Plant, Machinery, Tools and other equipments required by the proposed unit are
available indigenously. The various items required for installation of Rs.
14,00,000/- details as per quotation attached herewith.
QUALITY CONTROL:-
The concern proposed to sale of Steel Furniture as quality products for which
provision testing equipment have been proposed in the project report.
TECHNICAL KNOW- HOW:-
The process for sale of products is simple and no sophisticated technology is
involved. There is no requirement of any type of technical knowhow.

TRANSPORTATION:-
The proposed location is connected by road and near to the city. Thus the unit is
not likely to face difficulty on account of transportation.

UTILITIES:-

a) Power:
The total connected load for the smooth operations of the unit has been
estimated and Electricity connection will be obtained as per required load
including lighting load if required.

b) Water:
The water will be available. Necessary provision for storage of water and
water supply has been made in the project cost.
MANPOWER:-
The unit would require total manpower of 10 person of different category. The
details of salary/wages proposed to be paid together with annual Salary/wages
bill is given in separate annexure.

DEPRECIATION:-
The depreciation on fixed assets has been computed in annexure of this project
report in accordance with the admissibility of the same under the Income Tax
Act, 1961.

TRAINING:-
Applicant has to complete two week EDP training specially designed for the
purpose, which will be organized by KVIC/KVIB/DIC or the institution organized
by or under the administration control of Minister of MSME or any other training
centre of repute before disbursement of loan by the bank. After the successfully
completion of EDP training arranged by the KVIC/KVIB/DIC, the beneficiary will
deposit with the bank finance to the beneficiary.
CAPITAL SUBSIDY UNDER PMEGP:-
Unit is eligible to get capital subsidy under Prime Minister Employment
Generation Programme 35% of the total cost of the project (expect cost of land).
Total subsidy to be received Rs. 7,00,000/-
TERM LOAN AND WORKING CAPITAL LOAN UNDER PMEGP Scheme
The unit proposed to have Term loan UNDER PMEGP of Rs. 14,00,000/- &
working capital limit of Rs. 5,00,000/- Own contribution of unit will be
Rs.1,00,000/-, which is five percent of total cost of project. The total project cost
will be Rs. 20,00,000/-.
LOAN REPAYMENT SCHDULE

TERM LOAN UNDER PMEGP:-

Total Term Loan : Rs. 14,00,000/-

Total Duration : 5 Years
From the next year
Each yearly instalment : Rs. 2,80,000/-

Total instalments : Rs. 2,80,000*5 = Rs. 14,00,000/-

Total Rs. 14,00,000/-

INTEREST COMPUTATION
Interest computation is given in annexure 6.

PROJECTED INCOME/PROFITABILITY:

The projected Income & profitability statement has been shown in the attached
profit & loss account. Projected Balance sheet for the next five years is also
enclosed as here for the reference.

ECONOMIC VIABILITY:-

Based on the projections attached it is observed that sufficient revenue shall be

Generated through operations served & it indicates the economic viability of the
Proposal. Hence the project can be considered as economically favourable.

CONCLUSION:-

Based on the grounds discussed aforesaid it is concluded that project is

economically & feasibly viable and should be considered favourably.

GENERAL NOTE:-

All Thing Depicted Are Proposed Based On The Information Provided By The
Applicant We Shall Not Be Responsible For Any Financial MIS- Statements Or
Non Proper Use Of Funds By The Borrower.
 BEEKEEPING PROJ ECT REPORT
VILLAGE-------------- POST-------------------DISTT.------------
FINANCIAL ASPECTS OF THE PROJECT

A. FIXED CAPITAL
I-Plant & Machineries:

S.No Particulars No. Rate (Rs.) Amount(Rs.)

1 Beehives with super 200 2000 400000
2 Nucleus Box 200 3000 600000
3 Hi ve Stand 200 150 30000
4 Ant Well 50 50 2500
5 Queen excluder Sheet 10 100 1000
6 Feeder Frame 10 100 1000
7 Hi ve Tool 10 150 1500
8 Swarm Net 30 200 6000
9 Bee veil 30 200 6000
10 Smoker 30 300 9000
11 Honey Extractor S.S 4 20000 80000
12 Wire embedar 10 600 6000
13 Misc. Equipment Weigh Balance etc. 54000
14 Honey/Sugar Storage Drums 40 4000 160000
15 Laboratory Equi pments etc. LS 43000
TOTAL 1400000

II-Other Fixed Assets:

S.No Particulars Amount (Rs.)

1 Furniture for unit like racks, chair etc. 55000
2 Other equipments like fan, electrification etc. 20000
TOTAL 75000

III-Preliminary & Pre-operati ve expenses:

S.No Particulars Amount (Rs.)

1 Transportation of Machinery / Equipments 15000
2 Misc. Expenses ( Electric fitting , Board etc) 10000
TOT AL 25000

TOT AL FI XE D CAPIT AL

S.No Particulars Amount (Rs.)

1 Machinery and Equi pments 1400000
2 Other Fixed Assets 75000
3 Preliminary and Pre Operati ve Expenses 25000
TOT AL 1500000
 B. WORKING CAPITAL
I- Raw Material (Per Month):

S.No Particulars Amount (Rs.)

1 Bees 30000
2 Misc consumable 50000
3 Packing Materials 60000
TOTAL 140000

II- Man power (Per Month):

S.No Particulars Nos Rate Amount (Rs.)

1 Manager cum supervisor 1 20000 20000
2 Skill Manpower 10 15000 150000
3 Semi Skilled Manpower 10 8000 80000
TOTAL 250000

III- Utilities (Per Month):

S.No Particulars Amount (Rs.)

1 Electricity 5000
2 Phone bill 10000
3 Rent 25000
TOTAL 40000

IV- Misc. or other expenses: (Per Month)

S.No Particulars Amount (Rs.)

1 Repair & Renewal 50000
2 Other 20000
TOTAL 70000
 TOTAL WORKING CAPITAL (Per Month)

S.No Particulars Amount (Rs.)

1 Raw Material 140000
2 Manpower 250000
3 Utilities 40000
4 Misc. expenses 70000
TOTAL 500000

C-ANNUAL SALES REALISATION

S.No Particulars Qty./Kg. Rate Amount (Rs.)

1 Honey 16000 275 44000 00
2 Polin 6000 300 18000 00
3 Bees 800 1500 12000 00
1 Amount per year may be realized 74000 00

D-BREAK EVEN POINT

(BASED ON FIRST YEAR OF OPERATION)

S.No FIXED COST Amount (Rs.)

1 Interest on loan 149421
2 Depreciation 218000
3 Man power expenses (30% ) 900000
4 Operating expenses (30%) 900000
Total 21674 21
BEP = Fixed Cost * 100 216742083 78.66
Fixed Cost + Net Profit 27552 92
 BEEKEEPING PROJECT REPORT
VILLAGE-------------- POST------- -------- ---- DISTT. ------------
Annexture-1
PROJECTED BALANCE SHEET
(Rs. In '000)
Operating Years
PAR TICU L AR S
1st 2nd 3rd 4th 5th
A-S O URC E S:-

I ) CAPITAL / OWN CONTRI BUTION 100 688 1386 2185 3082

ADD:- P ROFIT 588 698 799 896 970
TOTAL 688 1386 2185 3082 4051

II) LOAN FUNDS

SECURED LOANS
Term Loan from Bank 1120 840 560 280 0
C/C Limit from Bank 500 500 500 500 500

T O T A L (I+II) 2308 2726 3245 3862 4551

B- APPLI CATI ON:-

I) FIXED ASS ETS

GROSS BLOCK 1475 1475 1475 1475 1475
LESS: ACC.DEPRICIA TION 218 404 562 696 811
T OTA L 1257 1071 913 779 664

II) CURR EN T A S SE T S L O AN S & ADV ANC E S

PRELIMINE RY E XPENSES 25 25 25 25 25
INVE NTORIES 140 147 154 161 168
SUNDERY RECE IVABLES 617 648 678 709 740
CASH & BANK BALANCES 725 1281 1908 2608 3282
LOANS & ADVANCES 100 150 200 250 400
T OTA L 1606 2250 2966 3754 4615

III) CURRENT LI ABILITI ES & PROVISIONS

SUNDERY CRE DITOR 140 147 154 161 168
PROV ISION FOR TA XA TAION 25 38 49 61 91
E XPENSES PAYABLE 391 410 430 449 469
T OTA L 556 595 633 671 728

IV) NET CUREENT ASS ETS (II-III) 1051 1655 2332 3083 3887

T OTA L 2308 2726 3245 3862 4551

Margin Money under PMEGP 700 700 700 - -

Note :-Above statement prepared & compiled by us as per the information provided by proprietor
 BEEKEEPING PROJECT REPORT
Annexture-2
VILLAGE-------------- POST-------------------DISTT.------------
PROJECTED COST OF PRODCUTION AND PROFITABILITY
(Rs. In '000)
Operating Years
Particulars
1st 2nd 3rd 4th 5th
Capacity Utilization 50% 55% 60% 65% 70%

A- INCOMES :

GROSS RECEIPTS 7400 7770 8140 8510 8880

CLSOING STOCK 140 147 154 161 168

TO TA L (A ) 7540 7917 8294 8671 9048

B- EXPENSES

OPENING STCOK 0 140 147 154 161

PURCHASES AND CONSUMPTION 1820 1764 1848 1932 2016

SAL ARY & WAGES 3000 3150 3300 3450 3600

UTILITIES EXPENSES 480 504 528 552 576

Total (B) 5300 5558 5823 6088 6353

C- GROSS PROFIT ( A-B ) 2240 2359 2471 2583 2695

AD MINISTR ATIVE COST 840 882 924 966 1008

SELLING & DISTRIBUTION EXPENSES 370 389 407 426 444

DEPRICIATION 218 186 158 134 115

FINANCIAL CHARGES
Interest on Term Loan @11.75% 149 117 84 51 18
Interest on CC Limit @10% 50 50 50 50 50

D-TOTAL 1627 1623 1623 1626 1635

E- PROFIT BEFORE TAX ( C - D ) 613 736 848 957 1060

F- PROVISION FOR TAXATION 25 38 49 61 91

G- NET PROFIT AFTER TAX 588 698 799 896 970

Note :-Above statement prepared & compiled by us as per the information provided by proprietor
 BEEKEEPING PROJECT REPORT
--------------VILLAGE ------------DISTT.
Annexture-3
PROJECTED CASH FLOW STATEMENT
(Rs. In '000)
Operating Years
PARTICULA RS
1st 2nd 3rd 4th 5th
A-SOURCE OF FUND

1. Increase in Capital 100 - - - -

2. Increase in Term Loan 1400 - - - -
3. Increase in C/C Limit 500 - - - -
4. Profit / (Loss) 588 698 799 896 970
5. Depreciation added back 218 186 158 134 115
6. Increase in Creditors 556 39 38 38 57

TOTAL ( A ) 3361 924 995 1068 1141

B-DISPOSAL OF FUND

I) FIXED ASSETS PURCHASED

1. Furniture & Fixtures 75 - - - -
2. Plant & Machinery 1400 - - - -

II) CURRENT ASS ET S

3. Increase in Stock 140 7 7 7 7
4. Increase in Debtors 617 31 31 31 31
5. Increase in Preliminary Exp. 25
6. Increase in Loans & Advances 100 50 50 50 150

III) O THERS
7. Payment of Term Loan 280 280 280 280 280
8. Decrease in Creditors 0

TOTAL ( B ) 2637 368 368 368 468

Opening Cash & Bank Balance 0 725 1281 1908 2609

Surplus/(Deficit) ( A - B ) 725 556 628 700 673
Closing Cash & Bank Balance 725 1281 1908 2609 3282

Note :-Above statement prepared & compiled by us as per the information provided by proprietor
 BEEKEEPING PROJECT REPORT
--------------VILLAGE -------------------POST
Annexture-4
COMPUTATION OF DEPRECIATION

Depreciation under WDV Method: (Rs. in '000')

Furniture & Plant &
Particulars Total
Fixture Machinery
Rate as per I.Tax Act 10% 15%
Value of Assets at beginning 75 1400 1475
1st year Dep. 8 210 218
Balance at the end of1st year 67 1190 1257
2nd year Dep. 7 179 186
Balance at the end of2nd year 60 1011 1071
3rd year Dep. 6 152 158
balance at the end of 3rd year 54 859 913
4th year Dep. 5 129 134
balance at the end of 4th year 49 730 779
5th year Dep. 5 110 115
 BEEKEEPING PROJECT REPORT
VILLAGE-------------- POST-------------------DISTT.------------
Annexture-5
PROJECT ED FINANCIAL RATIOS
(Rs. In '000)
Operating Years
PARTICULARS
1st 2nd 3rd 4th 5th

1. CURRENT RATIO
CURRENT ASSETS 1606 2250 2966 3754 4615
CURRENT LIABILITIES 1056 1095 1133 1171 1228

= 1.52 2.06 2.62 3.21 3.76

TIME S TIME S TIME S TIME S TIME S

GROSS PROFIT 2240 2359 2471 2583 2695

2. GROSS PROFIT RATIO
SALES 7400 7770 8140 8510 8880

= 30.27 % 30.36 % 30.36 % 30.35 % 30.35 %

NET PROFIT AFTER TA X 588 698 799 896 970

3. NET PROFIT RATIO
SALES 7400 7770 8140 8510 8880

= 7.94% 8.99% 9.82% 10.53 % 10.92 %

PAT+DEP.+INTT. ON TERM LOAN 955 1001 1041 1081 1102

4. DSCR
INTEREST+LOAN INSTAL MEN T 429 397 364 331 153

= 2.22 2.52 2.86 3.27 7.20

TIME S TIME S TIME S TIME S TIME S

PAT+DEP.+INTT. 1005 1051 1091 1131 1152

5. INTT. COVERAGE R ATIO
INTEREST 199 167 134 101 68

= 5.04 6.31 8.16 11.23 16.99

TIME S TIME S TIME S TIME S TIME S

6. DEBT EQUITY R ATIO

TO TAL TERM LIABILITY 1120 840 560 280 0
TO TAL NET WORTH 688 1386 2185 3082 4051

= 1.63 0.61 0.26 0.09 0.00

TIME S TIME S TIME S TIME S TIME S

7. ST A B I LI T Y/ G EA R I N G R A TI O
TO TAL OUTSIDE LIABILITY 1620 1340 1060 780 500
TO TAL NET WORTH 688 1386 2185 3082 4051

= 2.36 0.97 0.49 0.25 0.12

TIME S TIME S TIME S TIME S TIME S
 BEEKEEPING PROJECT REPORT
VILLAGE -------------- POST------------------- DISTT. ------------
Loan Amount Rs. 1400000 Annexture-6
Rate of Interest 11.75%
Tenure 5 Years (Rs. In '000)
Sl.No. Intalment Interst Principal Balance Loan

1st Year 429 149 280 1120

2nd Year 397 117 280 840

3rd Year 364 84 280 560

4th Year 331 51 280 280

5th Year 298 18 280 0

 DISCLAIMER

This project report will give an idea and guidance to budding and existing
entrepreneurs on how to prepare the project Report. They will come to know about
the essential elements of project report which must be kept in mind while formulating
business plan. Every earnest-effort has been made in collecting the data and
information available on the subject from different offline and online sources. This
report (including any enclosures and attachments) has been prepared solely for the
purpose for which it is provided.

NIESBUD suggest entrepreneurs to survey the market properly to find the actual
cost of fixed assets and working capital. The actual cost of the project or industry will
vary according to different elements like location, local regulation, financial
requirements of industry, capacity, type of industry, cost of resources and other
direct and indirect cost related to the project.

NIESBUD hereby disclaims any and all liability to any party for any direct, indirect,
implied, punitive, special, incidental or other consequential damages arising directly
or indirectly from any use of the Project Report Content which is provided “as is” and
“as available” basis without any warranties of any kind.

In no event shall NIESBUD be liable for any damages whatsoever resulting from the
use or inability to use the project report content.