Gayatri dairy

your trustworthy doodhwallah

By:- Vinay Kumar

Parag Goregaonkar
Ritesh Pathak
Naqui Shaikh
Flow of presentation
 Introduction
 Evolution of the business idea
 Objective of the business
 Business idea
 Operational structure
 Marketing strategy
 Implementation plan
 Costing
 Financial analysis
 Second phase
 Exit strategy
 Q&A
Introduction
 India is the largest producer of milk
 Huge market potential in the metros, asMilk

and milk products constitute an integral part

of the daily diet of all Indian households,
without exception, across all regions and all
social and economic categories.
 Over 70% of milk production is from

unorganized sector.
Evolution of the business idea
Need & benefits of milk consumption
 Milk plays an important role in daily diet
 It provides protein, fat carbohydrates and minerals
 Its calcium content.
Large number of unsatisfied consumers
 Lack of purity, milk is either contaminated with water or urea.
 If they consume packaged milk, they don’t find the natural
taste as its is treated chemically.
 Sometimes they get milk of morning in the evening and vice-
versa. So customers are dissatisfied.
 They don’t get the milk on time i.e either in morning before
9:00 am.
Objectives
Vision statement
 To provide the customers their true value for

their money, and add value to the society

with an aim of generating employment for the
poor.
Mission statement
 We propose to become the first choice of the

consumers when it comes to the requirement

of fresh n pure milk, as we want to get
ourselves known for our good quality.
Business idea
 The concept of opening a dairy farm is to
provide consumers of metro the taste of pure
and fresh milk. We will supply milk to our
customers on the day the animal is being
milked and that too at the prevailing market
price, through our well managed supply and
logistics department. Also, our dairy farm will
be near to the cities so that we can minimize
the travelling time that is being taken.
Dairy farm location
Components of dairy farm
◦ Land
◦ Animal quality
◦ Sheds
◦ Fencing the land area
◦ Water facilities
◦ Water storage pool
◦ Refrigerator
◦ Mode of transport
◦ Man power
◦ Distribution channels
◦ Other materials needed
◦ furniture
Operational structure
We will maintain our supply chain and purity maintenance
through following measures:-
 We have to start our day as early as possible, which should

not exceed 3:00am.

 We have to finish milking of cows latest by 6:00am.
 Since, supply of fresh n pure milk is our main usp, so we

have to reach city latest by 7:00am, this is the main reason,

why, We are not going beyond 50kms to setup my dairy
farm, as we cannot cover more than 50kms in an hour.
 There will be two distribution centres in Delhi, one in

Patparganj area while the other at Rajendra Nagar this may

change respectively. The reason being these two places as
they lie in ring road and it will be easier to reach there.
 After reaching the city they will be packed in
one and half lts pack and would be delivered to
customers at their door and the target to
complete the delivery process latest by 8:30am.
 The same would be repeated for the milk
produced in the evening.
 The surplus milk will be sold through our
distribution centres.
 The food requirement of animal would be
fulfilled by local as well as urban market as
fodder for animals are easily available.
 The amount of milk supplied would be realised
on a monthly basis.
Marketing strategy
Four p’s
 Product specification
 Pricing strategy
 Promotion

a)radio
b)sales personnel
c)newspaper
d)hoardings & posters
 Place
Use of STP
 Segmentation
 Targeting
 Positioning
SWOT analysis:-
 Strength- it is the supply of fresh n pure milk

directly to the consumers.

 Weakness- we don’t have a brand image, but

we are sure that we will build our brand

image through our quality product.
 Opportunities- The huge market potential in

the national capital region and large number

of unsatisfied customers.
 Threats- The existing players are the biggest

threat. But, we are coming with our own

unique selling proposition, so we are sure to
make an impact.
Implementation plan
 Selection and obtaining a land will take one
month time.
 Two months time would be needed for

erection of sheds, fencing the land area and

building the whole dairy structure.
 Purchasing of animals would take another

one month time.

 So a total time of four months would be

needed for building the full capital structure

and to start the operation.
Costing
 Initial investment required
 4.1 Initial investment required
Particulars Cost if land is taken on lease(15 years) Cost if land is purchased on outright

Land (10 acres) 15,00,000 1,00,00,000

Fencing the land area 5,00,000 5,00,000

Construction of sheds & godowns 10,00,000 10,00,000

Purchase of animals(100 cows) 40,00,000 40,00,000

Refrigerator(1500 lts each) 3,00,000 3,00,000

Coolers& fans 50,000 50,000

Shops for DC 5,00,000 5,00,000

Containers 30,000 30,000

Vehicle 5,00,000 5,00,000

Water facilities construction 1,50,000 1,50,000

Construction of pool 1,00,000 1,00,000

Furniture 1,00,000 1,00,000

Two wheeler and bicycle 90,000 90,000

Packaging machine 80,000 80,000

Other expenses 3,00,000 3,00,000

Total 92,00,000 1,77,00,000

 Operational cost required

Requirement Rate Cost

Maintenance Whole year for 100/cow 36,50,000
of animals 100 cows
Insurance 100 cows 1,000 1,00,000
Labour charge 12 nos 3,000/month 3,96,000
Supervisors 2 nos 6,000/month 1,44,000
Driver 1 nos 4,500/month 54,000
Compounder 1 nos 5,000/month 60,000
Fuel cost - - 3,50,000
Shop rent 2 nos 6,000/month 1,44,000
Electrical - 2,000/month 24,000
charges
Telephone - 2,000/month 24,000
charges
Other costs - - 10,54,000
Total - - 60,00,000
 Financial summary
Projected profit and loss account for first four years:

Particulars 1 2 3 4
Sale of milk 1,36,87,500 2,05,31,250 2,73,75,000 5,47,50,000
Sale of cow 1,12,500 2,18,750 3,25,000 7,50,000
dung
Net revenue 1,38,00,000 2,07,50,000 2,77,00,000 5,55,00,000
0perating cost 60,00,000 90,00,000 1,20,00,000 2,40,00,000
Gross profit 78,00,000 1,17,50,000 1,57,00,000 3,15,00,000
Depreciation 15,60,000 23,50,000 31,40,000 63,00,000
(39%)
Advertisement 20,00,000 25,00,000 30,00,000 50,00,000
cost
Other expense 5,40,000 9,00,000 10,60,000 12,00,000
Net profit 37,00,000 60,00,000 85,00,000 1,90,00,000
Tax 13,50,500 21,90,000 31,02,500 69,35,000
Pat 23,49,500 38,10,000 53,97,500 1,20,65,000
Second phase
 The second phase of the plan is very
ambitious which consists of bigger
investments. It is for this reason that we plan
to start this phase at least after two years of
the establishment of the dairy farm, as lot of
expertise and management would be needed.
There would be multiple benefits that would
be realised for a longer period of time.
implementation
 In this phase we intend to purchase around
One hundred acres of land along the radius
of three hundred kilometres around the Delhi
NCR region. And then we will purchase
around 1000-3000 calf of higher breed and
we will start animal farming. At the initial
stage we will start only with dairy farming &
fishing and then we will swiftly start with
other types animal farming activities.
Components of second phase
 Land:
 Animals:
 Fencing the land area:
 Sheds:
 Building of ponds:
 Mode of transport:
 Manpower requirements:
 Initial Investment Required:

Particulars amount

cost of the land 5,00,00,000

cost of calves(1500nos) 30,00,000
fencing the land area 20,00,000
construction of sheds 40,00,000

construction of ponds 10,00,000

other expenses required 50,00,000

TOTAL 6,50,00,000
Return on investment
 In animal farming business there is multiple type
of sources from where income could be
generated.
 These calves when they become a mature cow.

Each one could be sold for 25,000-30,000.

 Even if they are not sold, their milk that would be

generated could be sold through our established

dairy networks, or it can be processed and
transformed into other milk products.
 A creation of land bank, and a continuous

appreciation of the price of land.

Exit strategy:
Q &A
Thank you.