Business

Plan

Submitted By
Ksherenggai
Krishi Farm
Pvt Ltd

1
Table of Content
Business Overview 1- 2
Business Overview 1
Location & Plan 2
Vision, Mission & Objectives 3-5
Our Vision 3
Our Mission 4
What are our Objectives? 5
Business Analysis 6-10
Industry Analysis 6-8
About our Customers 9
Competitive Advantage 10
Operations Plan 11-13
Operations Plan 11
Organization Structure 12
Marketing Plan 13
Products 14-20
Our Products 14-20
Impact of Covid 19 20
Impact of Covid 19 20
SWOT Analysis 21-22
Financial Plan 23-28
Total project cost
Running
Proposed
Total Fund required

Study Methodology 29
Disclaimer 30
Business
Overview

3
Business Overview 1

Ksherenggai Krishi Farm Pvt Ltd (KKF) is a

Agricultural farm situated at
Namobuddha 7, Kavre, which started its
operations from 2077 B.S.

Currently, KKF has 4 sheds along with

stores which can hold 400 pigs, 150 Goats
at a time along with equipment worth
NPR. 3.475 Crore which includes Stocks
Generators, Feed Making Machine and
Other Building & Infrastructure.

Proposed, 7 sheds along with stores

which can hold 50 buffalos 150 cows 500
turkey 100 duck 15000 boiler hen with
fish pound at a time along with
equipment worth NPR. 3.275 Crore.

Total project cost will be 6.75 crore

KKF is owned by Mrs. Samjhana Lama.

She has background in agriculture.

KKF would extend the current production

capacity up to 400 Pigs and utilize the
additional land situated in near by farm
in Kavre.

The long term goal of KKF is to become a

pioneer in agriculture industry, by
introducing modern best practices and
meet the demands of ever increasing
customers for quality and unadulterated
products.

By utilizing the business exposures,

support from the media and the internet
along side, we plan to provide value to
customers, along with employment
opportunity for locals as well.
Location & Plan 2

KKF, located in Namobuddha 7, kavre; around 50 km far from Kathmandu valley.

The location boasts of 12 (7+5) ropani land having connection of electricity and water and
connected to a 20 feet black topped road.

Additional sheds and hatching for increased Chicken and Quails is planned to be
constructed. Quails are farmed vertically, therefore the additional saved space will be
utilized for rearing and farming of Buffaloes and other administrative purposes.

Total NPR 6.75 crore will be the project cost of KKF

CALCULATION OF COST OF PROJECT- SUMMARY
RUNNING PROJECT INVESTMENT (A)

SN PARTICULARS QTY/NO INVESTMENT (NRS) SOURCE REMARKS

1 PIG FARM 500 7,500,000.00 EQUITYB +DEBT 500 (No Of Pigs)

2 STRUCTURE FOR PIG FARM 3 15,000,000.00 EQUITYB +DEBT 3 ( No of Structure)

3 GOAT FARM 150 2,250,000.00 EQUITYB +DEBT 100 (No Of Goats)

4 STRUCTURE FOR GOAT FARM 1 5,000,000.00 EQUITYB +DEBT 1 (No Of Structure)

5 CAPITAL EXPENDITURE (FIXED ASSETS)   3,000,000.00 EQUITYB +DEBT  

6 OTHER OPERATIONAL INVESTMENT   2,000,000.00 EQUITYB +DEBT  

TOTAL RUNNING PROJECT INVESTMENT 34,750,000.00    

PROPOSED PROJECT INVESTMENT (B)

SN PARTICULARS QTY/NO INVESTMENT (NRS) SOURCE REMARKS

1 BUFFALLO FARM ( Structure) 1 4,000,000.00    

2 BUFFALLO FARM ( Buffallo) 40 4,000,000.00    

3 COW FARM ( Structure) 1 5,000,000.00    

4 COW FARM ( Cow) 100 7,500,000.00    

5 Turkey Farm   2,500,000.00    

6 Duck farm/Pound   1,500,000.00    

7 Local Kukhura   1,000,000.00    

8 Boiler Kukhura   2,500,000.00    

9 Fish Pound/Farm   4,750,000.00    

          

TOTAL PROPOSED PROJECT INVESTMENT 32,750,000.00    

TOTAL INVESTMENT ( RUNNING AND PROPSED) A+B 67,500,000.00    

Vision,
Mission &
Objective

6
Our Vision 3

We aspire (KKF) to be one of the a leading producers of

Pigs, Chicken and Quails and improving the health of our
consumers with quality products at reasonable price.
Along with buffalo milk production, our vision is to be the
part of self sufficient economy of Nepal.

Our plan is to occupy a significant market share of

chicken, Pig, Buffalo, Quail, goat , Cow , turkey, Fish etc
industry by utilizing the business connections and
relations developed by our promoters and connections of
existing business.

We intend to do the business by inculcating modern best

practices of industry and provide employment
opportunities to the locals, thus preventing outflow of
youth in foreign lands.
Our Mission 4

Ksherenggai Krishi Farm (KKF) will be dedicated to provide

its consumers, the best quality of products at with
constant innovation to provide best value for money. It
will value the place in the community within which it will
operate and will work to develop those relationships and
to respect and protect the environment.

KKF will continuously strive to create value for both

owners and investors while honoring the brand values and
encouraging its staff to develop themselves in an
environment of trust, loyalty, caring, team work and
constant improvement.
What Are Our Objectives ?? 5

 To be one of the leading Agro farm industry of Nepal in the

projected years by establishing itself as a prominent brand
among the consumers and the business partners in Poultry
and dairy industry.

 To capture a significant market share by utilizing business

relations with different businessmen, NGOs/INGO’s and
other organizations.

 To increase exposure and penetrate market using direct

advertisement, digital marketing, and promoting brand
through word of mouth.

 To provide quality Pig, chicks, quails and milk to

consumers and help them get good health.

 To ensure quality products at minimum cost through

introduction of modern best practices.

 To capitalize on deficit of current supply of milk , and

meat consumption.
Business
Analysis

10
Analysis on Poultry Industry 6

Poultry has an important role in Nepal as eggs and meats are the important and
comparatively cheap source of protein and vitamins. Chicken is most widely accepted meat
in Nepal after Buff & Chevon (Goat Meat). Eggs have become an important ingredient of
morning breakfast for a large number of families in urban areas as well are rural areas.

Trend of Meat production of last 5 years:-

Meat Production
2014/15 2015/16 2016/17 2017/18 2018/19
(MT)
BUFF 174012 175005 180080 185180 188574
CHEVON 60906 65583 67706 70802 73914
CHICKEN 45458 55041 57268 60122 62899
PORK 20135 23509 24535 28214 28579
MUTTON 2658 2684 2714 2754 2763
DUCK 232 237 241 280 353
TOTAL 303401 322059 332544 347352 357082

(Source: Statistical Information on Nepalese Agriculture 2075/76 [2018/19])

Per capita poultry meat consumption in Nepal was only 2.23 kg in 2018, and, total meat
consumption per capita was around 12.70 kg. It is very less compared to the average per
capita consumption in the word and the projection made by FAO. The low level of
consumption is due to low purchasing power and inadequate marketing infrastructure. This
creates a huge opportunity for poultry and meat industry.
Poultry Total Meat
Region
2014-16 2026 2014-16 2026
Africa 3.74 3.51 10.69 10.28
Asia and Pacific 8.64 9.73 25.99 27.58
BRICS 10.48 11.50 32.31 34.28
European Union 23.09 24.75 68.09 69.24
Latin America
and Caribbean 31.25 32.21 58.49 60.27
North America 45.65 46.96 92.07 95.29
South East Asia 13.12 14.95 30.67 33.96
World 13.56 14.11 34.13 34.58
Source: OECD/FAO (2017), “OECD-FAO Agricultural Outlook”
Analysis on Poultry Industry 7

ABOUT JAPANESE QUAILS (BATTAI)

With increasing per capita income of Nepalese people along with increasing health
consciousness, the consumption of poultry , is expected to increase. There are no sufficient
statistical research done on Quail (Battai) in Nepal, however, the popularity of Japanese
Quails have increased in Nepal due to its health benefits.

Meat and eggs of Japanese quail are rich source of protein as well as vitamins like Vitamin A,
Vitamin B, Vitamin E & Vitamin K. Quails meat and eggs contain low cholesterol and low fat
is a perfect food for the people of all ages’ different health condition.

Less shrinkage quality of meat during cooking is one of the reasons for people’s preference
over other meat. It contains essential amino acids, fatty acids and minerals such as sodium,
potassium and iron. Quail’s meat and egg are used to cure uric acid, asthma and good for
pregnant or lactating women.

The main constraint was that the common consumer groups hesitate to consume Japanese
quail meat due to its small size despite that fact that they know its health benefits.
However, currently, the demand of Quail is surpassing the supply with consumer waiting for
months to order Quails for its medicinal value. The vaccination cost of Quail is almost nil
due to its disease resisting nature.
Buffalo Farming Industry 8

Buffalo, also known as black gold, is an integral component of Nepalese Farming system.
Buffalo thrives well in grazing, crop residues, agricultural byproducts and is more resilient to
climatic stress. It ranks top on milk and meat contribution in Nepal.

Milk (MT) 2014/15 2015/16 2016/17 2017/18 2018/19

Cow 587719 643806 665285 754126 795530
Buffalo 1168006 1210441 1245954 1338277 1372905
Total 1755725 1854247 1911239 2092403 2168435
(Source: Statistical Information on Nepalese Agriculture 2075/76 [2018/19])

Per capita Milk availability/consumption in 2018 is 77kg which is well below neighboring
countries, in 2017: India- 106.06 , Pakistan – 184.57 (FAO)

Top 5 countries by per capita milk consumption in 2017 are:-

Finland 458
Albania 396
Montenegro 390
Estonia 357
Lithuania 351
Source: FAO

This shows that there is huge potential of milk consumption, with preferences to Buffalo
Milk these days due to awareness of people about health hazards of A-1 cow milk and non-
availability of A-2 cow milk. With Increasing per capita income, we look forward to
capitalize on the gap of supply and demand.
Our Target Customers 9

Ksherenggai Krishi Farm (KKF) targets the customers in Bagmati,

Lumbini, Gandaki and Province 2 , including the capital, Kathmandu
and Abroad. We plan to sell to the local farms as well as to our friends
in the hospitality industry.
We plan to capitalize on the demand and supply gap through mass
advertising over social media , television, radio and print media &
texting platforms.
KKF, over its years of operations have made a good name over the
customers, and word of mouth advertisement has been the major
driver of advertisement.
Customers are attracted because of quality product of chicks, and we
plan to scale that in quality Quails and Buffalo milk.
Competitive Advantage 10

As per MOAD , there were 98 Hatcheries in Nepal in 2013 and around 21,000 poultry
farms (98% small scale rearing less than 10,000 chicken per year) in Nepal as per
Nepal Commercial Poultry Survey (2014-15).

As far as dairy is concerned, Formal sector collection accounts for 25.22% of total
production whilst, Cottage, small, medium , large and SMP accounts for 11.45%,
19.93%, 41.33%, 22.11% and 5.18% respectively (Dairy Value Chain study, NDDB 2074-
75)

KKF is aware of the competitions around it when it comes to poultry and dairy
sector, which is why we decided to carry out thorough research so as to know how
to take advantage of the demand and supply gap.

We are able to highlight some factors that will provide us with a competitive edge;
some of which are:

 Providing with quality products, and strict no tolerance policy on defective

products as it is directly linked with public health.

 keeping the overheads and operating costs at the lowest to ensure facilities are
provided at a competitive rate,

 Use of newer digital marketing techniques to increase current market share and
do market penetration.

Another competitive advantage of KKF is the existing business relation and network
of Mr. Pariyar & Mr. Gurung with people of agriculture and hospitality business.
Operations
Plan

16
Operations Plan 11

The Operational Plan will lay down the Standard Operational Process and the guidelines for
all sorts of daily or periodic activities needed to be performed by the employees and
workers at Ksherenggai Krishi Farm.

Different departments has already been segregated with individual managers for each of
the departments for efficient and effective monitoring of the activities. The employees of
such departments will have a responsibility of reporting to the departments manager, who
in turn will be reporting the activities to the General Manager, who is responsible for the
proper functioning of the entire operations. General Manager shall report to the CEO, who
shall spearhead the organization, and lay strategies to evolve. A monthly board meeting
consisting of all the Board Members, Department Heads and Consultants shall be held for
discussing the statistics and the results achieved within the months and plans for further
expansion and strategies shall also be discussed at the same time.

The use of such departmental segregation, the management of the Farm shall be conducted
in a smooth manner ensuring maximum efficiency and value for money by segregating
individual line of responsibility and sense of liability.
Organization Structure 12

Hotel Buddy currently employees some of the best people from the hospitality sector along
with some of the best consultants in the field of hospitality, marketing and finance.

Board of
Directors

CEO/MD
Management Team

General
Manager

Accounts Poultry Pig Buffalo

& Marketing Division Division Division
Finance
Marketing Plan 13

Ksherenggai Krishi Farm is aware of the growing need of Marketing for tapping and
penetrating the market for achieving the desired target. KKF has stepped up in this by
increasing its marketing game and attracting customers through different marketing
techniques.

Our sales and marketing team is to be appointed based on their experience in the
agribusiness and are trained on regular basis to be equipped with the arsenal to meet
their targets and the overall goal of the organization.

We are currently aware of the eyeballs on the Social Media, in context of Nepal,
Facebook, Instagram, Tiktok and YouTube has the most market share. We plan to use
Digital marketing strategies on those platforms for brand awareness and promotion.

Over and above, the word of mouth is

still a main factor to marketing as a
whole and our promoter Mrs. Samjhana
Lama, having 5 years of experience in
Agriculture business, has made precious
connections and goodwill, which will
serve as valuable customers of KKF.

In summary, Ksherenggai Krishi FarmPvt.

Ltd. will adopt the following strategies in
marketing the agribusiness;

 Providing valuable contents over TV

show and Social Media and increase
brand value.

 Advertise the business in Agriculture

related magazines , websites, TV
shows and YouTube Channels.

 Collaborate with Media (Both Social

and Mainstream) Influencers, to reach
customers at very low cost (Influencer
Marketing)

 Attend agriculture related expos,

seminars, business fairs etc.,

 Engage in direct marketing,

 Encourage the use of word of mouth

marketing (referrals) by providing
quality products at reasonable cost.
Our
Products

20
Products 14

Broiler Chicks

Currently KKF has Pig farm having capacity to hold 300 at a time.

2 hatching machine, fish Farm, Bufallo Shed for 100 nos. is planned to be
installed.

The hatching time is 21 Days.

Therefore, about 17 cycles are operated throughout the year.

Approximately, 80% of total eggs are converted to chicks. Therefore,

from each cycle , 1,20,000 broiler chicks are expected to hatch, each
costing NPR 60.
Products 15

Broiler Parent

Broiler Parent has average life of 18 Months. Each broiler parent

has average weight of 6 Kilograms.

After the useful life, they are then sold at Chicken’s meat rate
which is about NPR 350/kg
Products 16

Quail Chicks

We plan to install 2 Incubators having capacity of 30,000 eggs each.

The average hatching cycle of Quails is 18 Days providing 20 hatching
cycle in an year.. About 80% of the eggs are hatched. In second year
of operation, additional 3 machines are planned to be installed and
therefore, getting total of 1,20,000 Quail chicks per cycle.

With proper feeding of Quail parents, our quails chicks will be of

excellent quality and we strive to close the demand and supply gap
and capitalize on the same.
Products 17

Quail Parent

Quail parent has average life of 18 Months. Each Quail parent has
average weight of 250 grams.

After the useful life, they are then sold at Quail meat rate which is
about NPR 1,000/kg. It is very easy to sell as Quail’s meat is in high
demand due to its medicinal property.
Products 18

Buffalo Milk

The lactation period of a Buffalo is around 6 Months in average. Average

milk yield per day is around 15-16 Litres.

Since we do not adulterate the milk, the sales price is around NPR 90 per
litre.
Products 19

Buffalo Calf

The average size of calf in its birth is about 35 Kgs, thereafter, through
proper feeding, the calf gains around 500 grams per day.

After an year, average weight of male buffalo is around 150 Kilograms,

and can be sold at NPR 300 per kilogram. The meat price of buffalo is
around NPR 400 per kg in the market.

Female buffalo after an year can fetch around NPR 70,000 and we plan to
sell it as per the schedule presented below:-

Calf Addition Sales

Year Opening Purchase Male Female Male Female Closing Lactating Calf
2077/78 0 50 25 25 0 0 100 50 50
2078/79 100 50 25 25 0 0 200 100 100
2079/80 200 0 25 25 50 0 200 100 100
2080/81 200 0 25 25 25 0 225 100 125
2081/82 225 0 38 37 25 0 275 125 150
Product 19
19
Pig And Piglet

The average size of Pig in its birth is about 3 Kgs, thereafter, through
proper feeding, the baby Pig gains around 500 grams per day.

After an year, average weight of male Pig is around 90 Kilograms, and can
be sold at NPR 350 per kilogram. The meat price of Pig is around NPR 450
per kg in the market.

Baby pig after an year can fetch around NPR 30,000 and we plan to sell it
as per the schedule presented below:-

Pig Addition Sales

Year Opening Purchase Male Female Male Female Closing Lactating Piglet
2077/78 0 50 25 25 0 0 100 50 50
2078/79 100 50 25 25 0 0 200 100 100
2079/80 200 0 25 25 50 0 200 100 100
2080/81 200 0 25 25 25 0 225 100 125
2081/82 225 0 38 37 25 0 275 125 150
Impact of
Covid 19

28
Impact of COVID 19 20

POULTRY SECTOR:

There has been a huge impact on poultry sector with lockdown imposed, poultry
owners were not able to procure feed for the chicken. The lockdown has forced many
chicken farms to close; including current KKF which is planned to be acquired by our
promoters.

This has caused shortage of Poultry product and we look forward to capitalize on the
gap of demand and supply.

DAIRY SECTOR:

Dairy products contribute 3.3 percent to GDP and represent 12.4 percent of the
agriculture sector (CBS, 2018). Nepal produced 1.475 million metric tonnes of milk
in the first eight months of FY 2018/2019 and exported milk, butter, cream and
cheese to India, China, Japan and other nations worth $1.71 million in FY
2018/2019 (Department of Customs [DoC], 2019). Comparison of the first nine
months of FY 2018/2019 and 2019/2020 show that export of these items has been
drastically reduced due to COVID-19. The foreign dependency on dairy products is
significant, because Nepal imported $7.35 million – four times more than the export
in FY 2018/19 (DoC, 2019).

There has been a significant hit on Dairy sector with closure of Restaurants and
Hotels who are the biggest consumers of dairy product. With the lockdown lifted,
and with closure of farms, we plan to minimize the supply gap of dairy products.

Source: Rapid Assessment of Socio-Economic Impact of COVID-19 in Nepal by UNDP

SWOT on
KKF

30
SWOT on KKF 21

Strength
 The biggest strength of Ksherenggai Krishi Farmis
the experience of our promoter; Mrs Samjhana
Lama.

 Through our promoter, we have healthy

relationships with major players in the
agribusiness and the hospitality industry

 Asides from our relationship, networks and

planned infrastructure, our biggest strength is the
new and innovative thinking in advertising,
branding and product development.

Weakness
 Our major weakness is the lack of funds for expanding
and growth of the business.

 Another weakness was in the Financial division of the

business, which will be solved by hiring Financial
consultants.
SWOT on KKF 22

Opportunity
 Because of the imposed lockdown in Nepal, many
small and medium scaled Poultry and Dairy farms
have been forced to shut down its operations
permanently due to the shortage of funds and
non-availability of feeds. With the closure of
these businesses, KKF can capitalize and take a
significant chunk of the market share.

 Demand for Quails is ever rising due to medicinal

properties and hence, we plan to penetrate the
Quail market and capture significant market
share.

 With increasing health awareness, people are

looking for unadulterated milk; fresh from farm.
We plan to make that available to the consumers.

Threat
 The biggest threat to KKF is the economic halt
brought in by the Pandemic. People had reduced
meat consumption for a few period during lockdown
and also with loss of jobs, spending on meat has
reduced. With lockdown removed, and operations
being resumed, the spending is expected to increase
on poultry products.

 Change in the governmental policy can be another

threat currently hovering the poultry & dairy
industry. After the end of the pandemic, this sector is
expected to receive stricter safety regulations.

 Another threat is of outbreaks of diseases like Bird

Flu which affects poultry sector severely.
Financial
Plan

33
Financial Plan 23

Total Cost Of Project

 The cost of Project will is NPR. 6.75 Crore, including both running and proposed.
Financial Projection 24

Revenue Profit Chart

NPR in Lakhs

Revenue Profit Chart

4500
4000
3500
3000
2500
2000
1500
1000
500
0
2075/76 2076/77 2077/78 2078/79 2079/80 2080/81 2081/82
Financial Year

Revenue From Operation Gross Profit Profit After Tax

Study Methodology 29

The Business Plan has been prepared after compiling and analysing the data and
figures obtained from the below mentioned references:

 From the self experience with running agro farm by KKF

 Statistical Information on Nepalese Agriculture 2075/76 [2018/19]; MOAD,

 Agriculture Outlook , 2017 ; FAO

 Final Report on study on cost of Milk Production ; NEPC/NDDB

 Creating Markets in Nepal/Country Private Sector Diagnostic, Nov,2018; World

Bank

 Possibility of Japanese quail farming in Nepal, its Characteristics, management, constraints

& Production economics; Lalit B.C.

 A REVIEW ON SCENARIO, CHALLENGES AND PROSPECTS OF POULTRY PRODUCTION IN

NEPAL ; Roshan Dhakal*, Binod Joshi, Rupak karn, Sagar Bhusal and Bibek Acharya [MJSA,
September, 2019]

 Rapid Assessment of Socio Economic Impact of COVID-19 in Nepal; UNDP

 Trends and ratios for the financial year 2073/74, 2074/75, 2075/76 & 2076/2077,
of similar agricultural farm.

 Interview with the clients regarding their plans and views on the Poultry & Dairy
Sector
Disclaimer 30

Relied upon the documents, information and explanations provided to us by the

management of the company and the prospective buyers for the purpose of
preparation of the business plan. The responsibility, at all times, for the supply of
documents & information will be of the management of the company and the
prospective buyers. We are not aware of any information/record to the contrary
which would lead us to believe that the conclusions or information stated in this
report are no longer valid. We have assumed that the data and information provided
to us by the management and the prospective buyers whether oral or in writing,
subsequent to the date of this business plan is true and fair in all means and any
information stated in this business plan are to the best knowledge and such
knowledge shall mean the actual knowledge of the employees in the course of
preparing this report;

We have presumed the accuracy of all statements, information, documents and

clarifications which were provided to us;

We have not obtained any formal translations of any documents or records other
than those made available for our review in the English language;

The figures and the data have been taken on the basis of studies and research papers
mentioned in Study Methodology and we haven’t verified the accuracy
independently.

Circulation of Report :

The above report is for the sole and exclusive benefit of the prospective buyers of
Ksherenggai Krishi Farm Pvt Ltd. The prospective buyers agree not to modify,
distribute, circulate, reproduce, copy or disclose to third parties or derive
commercial use or benefit from the report without the prior written permission of
us.