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Monday, 4 April 2011

Feed Processing Plant


1. Importance of feed in livestock sector
The success of livestock farming is largely dependent on the continuous supply of good quality nutritious feeds at competitive price. Feed alone constitute about 60-70 per cent of total cost of production of livestock products. Therefore, it needs more attention though other factors are also important for remunerative return from livestock enterprises. The farmers used to feed the crop residues to the cattle and buffaloes, however, sheep and goat are normally maintained on grazing/browsing with supplementary feeding of broken grains/other bypoducts. Therefore, feeding of balanced concentrate feed to these animals was not common, because of low productivity and unremunerative prices for the livestock products. The improved poultry is fed only with concentrated feed. The requirement of food of animal origin like milk, meat and eggs is increasing at a faster rate due to increased awareness about the significance of protective proteins for the maintenance of human health. The farmers realised the importance and started rearing good quality and high productive animals/birds under stall fed conditions.
2. Scope for feed industry
2.1 With the increased demand for livestock products for domestic consumption as well as export, the farmers realised maintaining of quality animals with proper feeding and management. The proportion of crossbred animals or improved strains of birds increased over the years. This has necessitated higher demand for balanced concentrate feed. Presently, various milk unions, poultry corporations/ federations and private companies are supplying both cattle and poultry feed of different qualities and forms (mash/ pellets/ crumbles) to the farmers. Large size poultry farm/dairy farm owners, hatcheries and cooperative poultry units are normally manufacturing their own feed by installing the necessary plant and machinery on the farm. Some of the farmers are still feeding broken grains, cakes, gur, salt,etc. to dairy animals by mixing at home.
2.2 The compounded feed manufactured by CLFMA (Compounded Livestock Feed Manufacturers Association) members during 1998-99 was 3.16 million tonnes. The feed production under organised sector since 1965 is given in Annexure-I. The demand-supply position for various feeds is given in Annexure - II. The present supply is only half of the total requirement. Moreover, the demand for small ruminants (goat and sheep) under stall fed conditions, rabbits and pigs is not estimated. Considering their requirements, the gap is much more.
2.3 The feed production could not keep pace with the growth in various species of farm animals and poultry. To meet the growing demand of processed and complete feeds for different class of animals, the unconventional feeds should also be used in the rations through proper processing for removal of anti nutritional factors. Thus, it indicates that there is a good scope for setting up feed processing plants of different capacities for production of various quality feeds.
3. Financial assistance for feed industry
3.1 NABARD is an apex institution for all matters relating to policy, planning and operations in the field of agricultural credit. It serves as a apex refinancing agency for the institutions providing investment and production credit. It promotes development through formulation and appraisal of projects through a well organised Technical Services Department at HO and Technical Cells at each of the ROs.
3.2 Loans from banks with refinance facility from NABARD are available for starting feed processing plants. For obtaining the bank loan, the entrepreneurs/companies should apply to the nearest branch of the commercial or cooperative or regional rural banks in their area in the prescribed application form which is available in the branches of financing banks. The entrepreneurs are also required to submit a detailed project report for which they can also take the help or guidance of the technical officers attached to the bank.
3.3 For feed processing plant with very large outlay, a detailed project reports will have to be prepared. The model format for formulation of bankable project is given in para 4. Banks provide financial assistance for the following purposes.
(a) Construction of factory building, godowns for raw materials as well as for finished products, office, canteen, generator room, essential quarters,etc.
(b) Purchase of equipments such as grinder, feed mixer, pelletizer, elevators, feed packing units, etc.
(c) Miscellaneous equipments such as transformer, generators, weighing scales vehicles, etc.
(d) Margin money for working capital requirement for one cycle of operation.
The cost of land is not considered for loan. However, if land is purchased for establishing a feed processing plant, land cost can be treated as party's margin money upto a maximum of 10 per cent of the total cost of project.
3.4. Scrutiny of Scheme by the Bank:
After the scheme is submitted to the Bank, it is examined for technical feasibility and economic viability.
(a) Technical Feasibility: This would briefly include:
(i) Availability of raw material such as grains, brans, oil cakes, mineral mixture, molasses, fish meal, vitamins, etc.
(ii) Feed formulation and technical norms
(iii) Infrastructure available for feed testing, procurement of raw material, marketing of different feeds, experience of the entrepreneur.
(b) Financial Viability: This would briefly cover:
(i) Project outlay, sources of funds and loan requirement
(ii) Raw material cost, expenses on fuel, labour, transport commission to be paid and other overheads
(iii) Output costs i.e. quantity and sale price of different feeds, number and sale price of empty gunny bags.
(iv) Income Expenditure statement and annual gross surplus
(v) Cash flow analysis - Benefit Cost Ratio(BCR), Net Present Worth (NPW) and Internal Rate of Return (IRR)
(vi) Repayment Schedule i.e. Repayment of principal loan amount and interest
Other documents such as loan application forms, security aspects, margin money requirements,etc. are also examined. A field visit to scheme area is undertaken for conducting techno economic feasibility study for appraisal of the scheme.
3.6. Sanction of Bank loan and its disbursement:
After ensuring its technical feasibility and financial viability, the scheme is sanctioned by the Bank. The loan is disbursed in two or three stages against construction of various civil structures, purchase of plant and machinery, miscellaneous fixed assets and margin money for working capital requirements. Constant follow up and supervision of the scheme is done by the Bank.
3.7. Lending terms
i) Unit Cost:
The Unit Cost depends upon the capacity of the feed mixing unit, type of feeds to be manufactured and also the infrastructure required.
ii) Margin Money:
In case if the feed mixing unit is integral part of the commercial poultry or dairy scheme, the down payment is based on the category of beneficiary. However, in respect of feed processing plant of larger size, the margin money is normally 25 per cent of the total cost of the project.
iii) Interest Rate:
It depends upon the RBI guidelines and also the individual banks. The present rate of interest for Rs.2.00 lakhs and above is linked to primary lending rates of banks which varies with the type of investment, beneficiary and also the credit rating.
iv) Security:
Security will be as per RBI guidelines issued from time to time.
v) Repayment period of loan:
It depends upon the gross surplus generation in the scheme. The loan will be repaid in suitable monthly or quarterly instalments usually within a period of 5-7 years. Wherever required, the grace period is also considered.
vi) Insurance:
The building and other assets such as poultry sheds, equipments may be insured against natural calamities.
4. Format of bankable project for feed plants
4.1 Introduction:
It should cover the name of the company, location of plant, activities, products, capacity of plant and project outlay
4.2 Company :
It should cover the location of registered office, date of formation, registration and authorised share capital. It should also cover the date of incorporation and commencement of business, the objectives, areas of operation, subscribed share capital.
4.3 Promoters and their background:
Name and address of promoters, their background, experience and net worth.
4.4 Management of the company:
Persons looking after the day to day management, their background, experience,etc. should be covered.
4.5 Project profile:
i) Land and location:
This should cover the area of land, location of the plant, distances from nearby town, availability of approach roads, power and water supply and other communication including schools, banks, hospitals,etc.
ii) Civil Structures:
Name of the Architect, type of structures proposed, drawings and detailed cost analysis of various civil structures along with the present position of implementation may be indicated. The technical specifications of civil structures are given in Annexure - III.
iii) Plant and Machinery:
The major plant and machinery (imported and indigenous separately), sources of supply, specifications and quotations for various items of equipment need to be given. List of major suppliers of feed plant machinery is given in Annexure - IV.
iv) Technical collaboration:
The name of the technical collaborators for monitoring and marketing of the products along with their addresses and the type of collaborations should be indicated. Technical collaboration fee/royalty to be paid should also be indicated.
v) Manufacturing process:
It should cover the manufacturing process of feed (mash/ pelleted feed) in the form of flow chart, proportion of various feeds to be manufactured and the composition of the different feeds.
vi) Infrastructural facilities:
a) Raw Material:
The feed ingredients (grains, cakes, brans, fish meal, molasses, vitamins, minerals,etc.), source and method of procurement, basis of price fixation, agreements if any for regular supply of raw material may be indicated. BSI standrads for feed ingredients are given in Annexure - V. Average nutritive values of common feed ingredients and the reasonable levels for their inclusion are given in Annexure - VI and VII respectively.
b) Packing material :
The type of packing material required (jute/plastic bags), source of supply, capacity and price of bag, approximate quantity required per month and method of purchase need to be furnished.
c) Utilities:
* Power: The total power requirement of the unit, source of power supply, position of power supply in the area and stand by arrangements made by the company, whether permission is obtained or applied to the State Electricity Board for power connection.
* Water: The source of supply, quantity available vis-a-vis daily requirement and arrangements made for supply of water.
* Fuel : The requirement of coal, diesel and gas, source of supply, adequacy of availability and cost of material may be mentioned.
* Steam: Quantity required, source and capacity of boiler.
* Transportation: The mode of transportation of raw material as well as feed, whether owned or hired vehicles, availability of vehicles and cost per kilometer.
* Laboratory : Whether the company is planning to set up a laboratory for testing the raw material as well as feed, specification of laboratory equipment, quality and cost, the proposed tests to be carried out and the adequacy of man power for carrying out these tests.
vi) Pollution Control:
The type of measures proposed for controlling the air pollution inside the unit and also for the employees of the company.
vii) Man power:
It should cover the technical skill and unskilled labourers required, their availability and source, method of recruiting them and also their salary structures/wage rates should be mentioned.
4.6 Marketing and business prospects:
a) The product mix, capacity of the plant, year-wise capacity utilisation and actual quantity of products produced per year.
b) Areas of marketing of the product and strategies i.e. Talukas, district or state-wise quantities proposed for sale, methods of sale, agencies/contractors, method of transportation of products, incentives or commission proposed to be paid, expenditure on publicity and brand name should be indicated. It should also cover the proposed marketing network in terms of staff and material.
c) Market survey for raw materials as well as for the products to be sold covering the demand/supply position, other sources of supply of products, the average price of products for the last 4-5 years and also the potential for selling the products should also be covered.
4.7 Socio-economic benefits: The number of villages, farmers and number of animals benefited and also number of persons employed either directly or indirectly in this activity.
4.8 Schedule of Implementation:
The proposed implementation schedule of the scheme may be indicated starting from purchase of land till commercial production.
4.9 Swot Analysis:
The strengths, weaknesses, opportunities and threats should be discussed separately.
4.10 Project cost:
i) Land:
Area of land, cost of land and conversion charges
ii) Site and land development:
It should cover the land levelling, fencing/compound wall, internal roads, drainage,etc. The specifications, unit cost and the total cost should be furnished.
iii) Civil structures:
The civil structures comprises of factory building, raw material and finished products godowns, office, laboratory, quarters, garage, canteen, etc. Detailed plan lay outs along with cost estimates certified by the Engineer should be given.
iv) Plant and machinery:
Imported/indigenous components, major suppliers, quantities, unit cost and the total cost of the plant and machinery including the misc. equipments should be given. The quotations along with the specifications is required to be enclosed.
v) Electrical system:
Covering transformer, diesel generators, internal and external electrification and also the deposits to be paid to the State Electricity Boards. The specifications of transformer as well as generators along with the quotations should be furnished. With reference to electrification - the break up is required to be given.
vi) Water supply and other utilities:
Source of water, specifications and expenditure on water supply system, cost of boilers for steam generation,etc.
vii) Vehicles:
Number and cost along with justification on requirement of the various vehicles, price quotations from the dealers along with specifications should be furnished.
viii) Pre-operative and preliminary expenses:
The item wise cost and justification should be given.
ix) Contingencies:
Percentage of contingencies and its reasonableness
x) Margin money for working capital:
The margin money for working capital may be worked out taking into account the requirements of various raw material, packing material, fuel,etc., finished products and sundry debtors for one cycle of operation.
4.11 Sources of Finance:
The total project cost and source of funds (equity/public issue, subsidy, loan,etc. should be furnished.
4.12 Techno economic parameters:
Should cover the capacity of the plant, yearwise capacity utilisation, quantity of feed manufactured, commission on sale of feed, transportation charges, power and fuel charges, packing material charges, salaries and wages, marketing expenses and other overheads. The procurement prices of various ingredients as well as the sale price of various brands of feed should be indicated.
4.13 Economics of the project and cash flow analysis:
Considering the capacity utilisation and also the various techno economic parameters, the income and expenditure streams have to be worked out to arrive at the gross profit. From the cash flow analysis, the Benefit Cost Ratio (BCR), Net Present Worth (NPW) and Internal Rate of Return (IRR) of the project may be worked out to establish the economic/financial viability of the project.
4.14 The model economics for feed plant with a capacity to manufacture 100 MT per day are given in statements 1-10 as per the requirements sepcified in previous paragarphs.
4.15 Documents and clearances required:
Site Plan, structural drawings,quantities and detailed cost analysis of various civil structures certified by an Architect, Price quotations and specifications for various items of plant and machinery, Approval from State Electricity Board for load connection, NOC from Panchayat, approval from Inspector of Factories, Registrar of Copy Rights, approval for brand registration, Registration of Company, Memorandum of Articles of Association, Registration of Unit under SSI (If applicable), permission for procurement of molasses, agreement between the Company and the collaborator for technical assistance and market survey report.
5. Information sources and training facilities
Further reference list of books/periodicals on cattle and poultry feeds is given in Annexure - VIII. The addresses of training centres on feed formulation and quality control are given in Annexure - IX.
6. Checklist for financing cattle/poultry feed projects
(To be completed by the Executive/Officers of the Bank forwarding the Scheme)
1. Articles of Association and Memorandum of
the Company/Corporation ------------
2. Balance Sheets and profit and loss statements
for last 2-3 years for the existing companies ------------
3. Profile of Directors of Company ------------
4. Project cost and sources of funds ------------
5. In case of consortium, names of banks participating
in consortium ------------
6. Details of site, availability of land, electricity and water -----------
7. Availability of raw materials - Feed ingredients'
source of supply and costs -----------
8. Capacity of the feed plant per shift, no. of shifts
and capacity utilisation over years -----------
9. Type of feeds and quantities proposed to be manufactured -----------
10. Market survey report for raw material as well as
finished products ------------
11. Marketing strategy and net work for the sale of feed ------------
12. Technical and other man power requirement
availability and their salary structure ------------
13. Techno economic parameters for working
out the economics of the project ------------
14. Cash flow and profitability statement ------------
15. Break even point and income generation ------------
16. Arrangements for working capital requirements ------------
17. Undertaking from State Govt. for meeting the
deficit if any and also for repayment of loan
and interest if it is a corporation activity ------------
18. Licenses/approvals/permissions required
from the concerned departments -----------
19. Site plan of the area -----------
20. Detailed drawings and cost estimates for all items
of civil works signed by qualified engineers. ------------
21. Detailed specifications and cost of utilities ------------
22. Detailed specifications of each of equipment/
machinery and its cost based on market data/quotations ------------
23. Detailed list and cost of imported items
of equipment and license for import ------------
24. Implementation schedule and the mode of
execution of work i.e. Departmentally/
labour contract/turnkey basis -----------
Annexure - I
Growth pattern in production of compounded feeds by CLFMA members
Year Cattle and other Feeds Poultry feeds Total feed

Production
(000 tonnes)
% to total Production
(000 tonnes)
% to total Production
(000 tonnes)
1,965 53.30 67.73 25.40 32.27 78.70
1,970 125.40 59.80 84.30 40.20 209.70
1,975 275.30 65.67 143.90 34.33 419.20
1,980 549.90 61.09 350.20 38.91 900.10
1,985 867.30 63.30 502.80 36.70 1370.10
1,990 1324.50 61.29 833.70 38.71 2161.20
1991-1992* 1479.20 61.07 942.80 38.93 2422.00
1992-1993* 1475.30 63.09 863.10 36.91 2338.40
1993-1994* 1370.80 61.00 876.50 39.00 2247.30
1994-1995* 1465.10 57.69 1074.60 42.31 2539.70
1995-1996* 1542.80 54.89 1267.80 45.11 2810.60
1996-1997* 1528.60 52.03 1409.00 47.97 2937.60
1997-1998* 1430.70 51.54 1345.00 48.46 2775.70
1998-1999* 1488.20 46.73 1696.60 53.27 3184.80
1999-2000 1302.30 44.46 1600.70 55.14 2903.00
2000-2001 1274.80 45.62 1519.30 54.38 2794.10
* April to March of the years indicated
Annexure - II
Demand for cattle and poultry feeds and supply by CLFMA members
Population in millions
Feed in million tonnes
Particulars 1994-95 1995-96 1996-97 1997-98 1998-99 1999-2K
Estimated cattle population :





Cattle Population





CB cows





Animals in milk 27.874 27.875 27.876 27.878 27.879 27.88
Dry animals 33.583 33.584 33.586 33.588 33.589 33.591
Buffaloes





Animals in milk 24.570 24.571 24.572 24.574 24.575 24.576
Dry animals 15.266 15.267 15.268 15.268 15.269 15.27
Cattle feed requirement





CB cows





Animals in milk 7.156 7.156 7.156 7.157 7.157 7.157
Dry animals 2.155 2.155 2.156 2.156 2.156 2.156
Buffaloes





Animals in milk 12.232 12.233 12.234 12.234 12.235 12.235
Dry animals 1.900 1.900 1.900 1.900 1.900 1.901
A. Total cattle feed requirement 23.443 23.445 23.446 23.447 23.448 23.449
Poultry population





Commercial layers 118 123 127 133 137 145
Commercial broilers 532 532 585 600 612 625
Layer parents 1.18 1.23 1.27 1.33 1.37 1.45
Broiler parents 3.8 3.8 4.18 4.29 4.37 4.46
Poultry feed requirements





Commercial layers 5.61 5.84 6.03 6.32 6.51 6.89
Commercial broilers 1.76 1.76 1.93 1.98 2.02 2.06
Layer parents 0.06 0.06 0.06 0.07 0.07 0.07
Broiler parents 0.25 0.25 0.27 0.28 0.28 0.29
B. Total poultry feed
requirements
7.67 7.91 8.3 8.64 8.88 9.31
C. Total of cattle and
poultry feed requirement
(A + B)
31.11 31.351 31.744 32.089 32.328 32.762
Supply of livestock feed
from CLFMA members
2.54 2.81 2.91 2.76 3.16 2.90
Annexure -III
Technical Requirements of Civil structures
1. Site Plan
A detailed site plan indicating the following information should be furnished:
- Area of the land
- Boundary conditions and approach road
- Layout, location of various existing and proposed
structures indicating with different colours (preferably)
2. Drawings and rate analysis
Structural and Architectural drawings of each item of civil constructions, measurement sheet, abstract of measurement and estimate of work rates approved in the schedule of rates, current market rates and analysis of rates applied to site conditions should be provided.
3. Development and Construction works
3.1 Land Development
The type of development, earth work and the cost should be given.Care should be taken to limit the cost by assessing the area - requirement for various construction works.
3.2 Fencing
Fencing can be of barbed wire with angle iron/ R.C.C./ Stone/ Wooden poles or chain link or boundary wall. The prevailing cost of these fences/wall may be considered.
3.3 Roads
Normally, Water Bound Macadam (WBM) roads are adequate. Normal road width of 15 to 20 ft. is sufficient. The total length, width and the height of the road alongwith the prevailing cost may be furnished.
3.4 Civil Structures:
i) Godown : For raw material and finished products. Normally, the raw material godown with a capacity to hold ingredients for a period of 45 days is considered. For storing 200 kg. of raw material, roughly one sq.ft. area is required. Similarly, in case of finished products(feed) also, for storage of one week production the godown may be considered.
ii) Silos : The silos for storage of grains may also be considered in case of large size plants. The silos may be of cement or aluminium or steel structure.
iii) Factory Building: Depending upon the capacity of the plant, the factory building area may also be considered. Normally, for a 10 tonne per day capacity plant, an area of 600 sq.ft. is sufficient. In case of automatic plants, higher areas may be considered which includes the ingredient bins, elevators and control panel areas,etc.
iv) Laboratory: For proximate analysis of ingredients as well as finished product it is essential to have own laboratory in case of large size processing plants. An area of 500-600 sq.ft. may be considered for such laboratory purpose.
v) Office Building : It depends upon the number of staff to be positioned in office for a plant with a capacity to handle 100 tonnes per day, an office area of 800-1000 sq.ft. is approximately sufficient.
vi) Store Room : It depends upon the capacity of the plant. A separate store may be considered for other equipments and vitamins, growth promoters,etc.
vii) Generator Room : 200-400 sq.ft. area for a generator is sufficient.
viii) Security Post: A Security Post at the entrance is essential to control the movement of trucks as well as the mobility of staff.
ix) Quarters:
Manager : Plinth area of 700-800 sq.ft. area is adequate for the purpose.
Supervisor: A maximum plinth area of 400 sq.ft. may be considered.
Labour and other staff: 200 sq.ft. area is adequate.
The quarters are normally considered only for the essential staff who are required to be on the site/plant.
x) Weigh bridge : For the weighment of ingredients and the finished products, a weigh bridge is essential at the entrance.
xi) Raw Material drying area: For drying of the grains to reduce the moisture levels to the extent required for a longer time. The drying area depends upon the capacity of the plant and the quality of grains to be stored.
4. Minor Irrigation Structures

Source of water and the expenditure on MI structures like well, motor, pipeline, water tanks,etc. may be considered.
. Annexure - IV
List of major suppliers of Feed Plant Machinery
1 Ashok Engineering Works
Behind Satkar Hotel,
Bankapur Chowk,
Poona-Bangalore Road, Hubli 580 020
11 Khare Engineering Industries
C -17, Industrial Estate Coop.Society
Miraj 416 410
2 B I Industries 22-1-1040/9,
Derulshafa Main Road
Hyderabad 500 024
12 Kiran Engineering Works
G T Road, Batala - 143 505, Punjab
3 B K Allied Industries
G T Road, Near Water Tanks
Khanna - 141 401, Punjab
13 Paragon Enterprise Industries
27,GIDC Industrial Estate
Nandesari-391340
Baroda Dist. Gujarat
4 Buhler (India) Ltd. 209,
T V Industrial EstateS K Ahire Marg, Worli, Mumbai 400 028
14 Power Tech
900/1/A,GIDC, Makarpura,
Baroda 390 010
5 Cremach Designs
893/4, GIDC Industrial Estate Makarpura, P B No.802
Baroda 390 010
15 Precision products
Plot No.2007, Phase IV
GIDC Estate Vatva,
Ahmedabad 382 445
6 Forms and Gears
L -3 , Industrial EstateGuindy,
Madras 600 032
16 Shakti Engineering Works
G T Road, Batala 143 505, Punjab
7 Hard case Engineering Works Ltd. 5-3-325, Lalaji Meghaji Compound
M G Road,
Secunderabad - 3
17 Spectoms Engineering Pvt Ltd.
Purushottam Estate
Bahvcharaji Road
Baroda 390 018
8 Indian Fabricators
Phase IV Plot No.1305/1,
GIDC Industrial EstateNaroda, Ahmedabad 382 330
18 Sri Guru Siddheshwar Engineering Works, Karwar Road,
Near INDI Pump
Hubli - 580 024, Karnataka
9 Jaspal Steels & Allied Industries, Chandigarh Road
P B No. 73, Khanna 141401, Punjab
19 Standard Equipment Co.
Jandiala Road, Taran Taran
Amritsar - 143 401Punjab
10 Jaymes Engineering Co.Ltd.
Great Western Building
130-132, Shahid Bhagat Singh Rd.
Mumbai 400 023.
20 Troika Processes Ltd.
607, Embassy Centre
Nariman Point
Mumbai 400 021.
Annexure - V
BIS Standards for Feed/Ingredients
1.         Animal feeds and feeding stuffs,
-glossary of terms for IS :9703-1980
-methods of test for : General methods IS:7874 (Pt I)-1975
-minerals and trace elements IS:7874(PtII)-1975
-microbiological methods IS:7874(Pt III)-1975
-methods of sampling for aflatoxin analysis IS:13246:1992
-determination of aflatoxin B-1 content IS:13427:1992, IS 6651-1989
-determination of calcium: Titrimetric method IS:13433(PtI)-1992;
-Atomic absorption method IS:13433(PtII)-1992
-determination of calcium and
magnesium in mineral supplements IS: 13574-1992
2.         Blood meal IS : 7060-1973
3.         Bone meal - IS: 1942-1968, IS:7061-1973(calcined)
4.         Coconut Oilcake - Expeller pressed IS:2154-1986
            Solvent extracted IS:3592-1985
5.         Cottonseed Oilcake - Expeller pressed IS:1712-1982
            solvent extracted IS:3592-1985
6.         Dicalcium phosphate, animal feed grade IS:5470 -1969
7.         Fish meal IS:4307 - 1983
8.         Fodder yeast IS:3198 - 1965
9.         Gram - chuni IS:3161 - 1965
                        - husk IS:3162 - 1965
10.        Groundnut oilcake as livestock feed ingredient
            - Expeller pressed IS:1713 - 1986
            - solvent extracted IS:3441 - 1982
11.         Guar meal IS: 4193 - 1986
12.         Linseed oilcake as livestock feed ingredient
            - Expeller pressed IS:1935 - 1982
            -solvent extracted IS:3440 - 1985
13.         Maize - bran IS:2153 - 1985
              - germ oilcake IS:2151 - 1985
               - gluten feed IS:2152 - 1972
14.         Malt sprouts as livestock feed ingredient IS:11586 - 1986
15.         Mango seed kernel IS:10671 - 1983
16.         Meat meal as livestock feed ingredient IS:5065 -1986
17.         Mustard and rape seed oilcake IS:1932 - 1986
18.         Nigerseed oilcake, solvent extracted IS:5862 - 1970
19.         Par boiled rice bran as livestock feed ingredient IS:9867 - 1981
20.         Poultry, Nutrient requirements for IS:9863 - 1992
21.         Rice bran IS:3648 - 1975
             -solvent extracted IS:3593 - 1979
22.         Rice polish IS:3163 - 1965
23.         Safflower (kardi)oilcake
             -Expeller pressed IS:2503 - 1886
            -solvent extracted IS:6242 - 1985
24.         Salseed meal, solvent extracted IS: 7059 - 1973
25.         Sesamum (til) oilcake as livestock feed ingredient IS:1934 - 1982
26.         Silk worm pupae, dry IS:6107 - 1971
27.         Solvent extracted nigerseed oilcake (meal) IS: 5862 - 1970
28.         Solvent extracted sal seed meal IS:7059 - 1973
29.         Solvent extracted soyabean oilcake (meal) IS:10657 - 1983
30.         Sunflower oilcake; undecorticated
                -as livestock feed ingredient IS:10147 - 1982
                -decorticated IS:10165 - 1982
31.         Tapioca IS:1509 - 1972
32.         Spent pulp IS: 5064 - 1980
33.         Tur - chuni IS: 3160 - 1965
               - husk IS: 5063 - 1969
34.         Wheat bran IS: 2239 - 1971
Annexure - VI
Average Nutritive Values of common feed ingredients (Dry Matter basis)
No. Botanical name Common name CP
(%)
DCP
(%)
TDN
(%)
DE
MCal
ME
MCal
A CEREAL GRAINS





1 Avena Sativa Oats, Jai 10 7.5 80 3.5 2.8
2 Eleusine coracana Finger millet 10 7.0 70 3.1 2.5
3 Hordeum vulgare Barley, Jav 11 7.7 85 3.7 3.1
4 Oryza sativa Rice, Chawal 8 6.0 85 3.7 3.2
5 Panicum millaceum Proso millet 6 4.0 70 3.1 2.5
6 Pennisetum typhoides Pearl millet 12 6.0 65 2.8 2.3
7 Sorghum bicolor sorghum, Jowar 12 6.6 85 3.7 3.2
8 Triticum aestivum Wheat 13 9.0 87 3.8 3.4
9 Zea mays Maize, Makka 10 7.0 85 3.7 3.3








B LEGUMINOUS SEEDS





1 Cajanus cajan Pigeonpea 20 14.5 75 3.3 2.7
2 Cicer arietinum Chickpea, Gram 20 14.0 85 3.7 3.2
3 Cyamopsis tetragonolobo Cluster bean 30 22.5 79 3.5 2.8
4 Dolichos lablab Hyacinth bean 17 10.2 70 3.1 2.5
5 Gossypium spp. Cotton seed 18 12.5 88 3.8 3.3
6 Glycine max. Soyabean 40 37.0 90 4.0 3.4
7 Lathyrus sativus Khesari 29 22.0 85 3.7 3.2
8 Lens esculenta Lentil, Masoor 25 20.0 80 3.5 2.9
9 Phaseolus aconitifolius Moth bean 27 22.0 82 3.6 2.9
10 Paureus Green gram 26 20.0 82 3.6 2.9
11 P.radiatus Black gram 19 14.0 78 3.4 2.9
12 P.calcaratus Rice bean 21 15.0 73 3.2 2.7
13 Vigna sinensis Cowpea, Lobia 26 20.0 75 3.3 2
C OIL SEEDS





1 Arachis hypohaea Groundnut seed 30 23.0 130 5.8 5.0
2 Brassica spp. Mustard, Rape 22 20.5 112 5.0 4.5
3 Lunium usitatissium Linseed, Flex 19 15.5 118 5.2 4.3
4 Sesamum indicum Sesame, Til 24 19.5 125 5.5 5.0
D NONCONVENTIONAL






SEEDS





1 Acacia nilotica Babul seed/pod 14 10.2 65 3.0 2.6
2 Cannabina Seeds 33 --- --- --- ---
3 Cassia tora Chakunda 18 12.5 88 3.9 3.2
4 Crotalaria juncea Sunhemp 36 31.0 70 3.1 2.5
E PROTEIN SUPPLEMENTS






(VEGETABLE SOURCE)





1 Arachis hypogaea Expeller 47 32.0 85 3.7 3.3


Solvent ext. 49 43.2 70 3.1 2.6
2 Brassica spp. Expeller 34 28.5 80 3.5 2.9


Solvent ext. 38 30.5 68 3.0 2.4
3 Carthamus tinctorius Expeller 42 32.0 69 3.0 2.5
4 Cocos nucifera Coconut 23 18.0 85 3.7 3.2
5 Glycine max. Expeller 41 35.7 86 3.7 3.3


Solvent ext. 46 41.4 80 3.5 3.0
6 Gossypium spp. Expeller 28 20.0 80 3.5 2.9
7 Linum Usitatissium Expeller 30 25.5 80 3.5 3.0
8 Sesamum inidcum Expeller 40 35.0 85 3.7 3.3
9 Zea mays cake
20 15.0 82 3.6 3.1
10 Helianthus spp Sunflower 26 22.0 70 3.1 2.7
11 Guizotia abyssinica Niger cake 45 25.5 55 2.4 2.0

(ANIMAL PROTEIN SOURCE)





1 Blood Meal
87 62.0 90 4.0 3.4
2 Meat Meal
65 52.5 85 4.2 3.6
3 Fish Meal
50 45.0 70 3.4 2.7
Annexure - VII
Reasonable levels of inclusion of various
Feed Ingredients in Poultry feeds
S.No. Ingredients Level in diet (%)



A ENERGY FEEDS



1 Barley 20 - 35
2 Maize (yellow or white) 60
3 Oats Less than 10
4 Pearl millet or Bajra 30 - 40
5 Rice, hulled 40 - 50
6 Sorghum (white with low tannins) 25 - 35
7 Sorghum (milo or coloured) Less than 10
8 Wheat 45 - 50



B MILLING BYPRODUCTS OF CEREAL GRAINS



1 Hominy feed, Maize bran, Maize grit Less than 10
2 Molasses 5 - 15
3 Rice bran, deoiled rice bran 10 - 20
4 Rice polish 25 - 40
5 Salseed meal, deoiled 3 - 5
6 Tapioca chips, flour 10 - 20



C PROTEINOUS FEEDS (VEGETABLE SOURCE)



1 Coconut cake, Cottonseed cake 5
2 Groundnut cake, expeller 40
3 Groundnut cake, solvent extracted 20
4 Linseed cake Less than 5
5 Linseed cake, hot water treated 20
6 Mustard cake, rape cake, niger cake Less than 10
7 Safflower cake, decorticated 20
8 Sunflower cake, decorticated 20
9 Sesame cake or til cake, expeller 20
10 Soyabean meal, heat treated 30 - 40
11 Sunflower cake, decorticated 20



D PROTEINOUS FEEDS (ANIMAL SOURCES)



1 Fish meal, 45% protein 10
2 Fish meal, 55 - 60% protein 6 - 8
3 Fish scrap, fish solubles (dried) 3
4 Feather meal, hydrolysed 3
5 Silkworm pupae meal 5
6 Skim milk powder 5



E MISCELLANEOUS FEEDS



1 Animal and vegetable fats 3 - 5
2 Distillers dried grains and solubles 10
3 Leguminous fodders leaf meal 5
4 Penicillin mycellium wastes 10



NB : Some minor seeds like that of Lathyrus, Kasani, Dhaincha etc. and cakes like water washed neem seed kernel cake, mahua seed cake and other processed feeds may be used as replacement for similar feeds at 5 to 10 % levels.
Annexure - VIII
List of Training Centres on Feed Formulation and Quality control
1. Central Avian Research Institute,
Izatnagar - 243 122 (Uttar Pradesh)
2. Harayana Agricultural University
College of Animal Sciences, Hissar - 125 004
3. Regional Feed Analytical Laboratory
Govt. of India, CPBF Campus
Industrial Area, Chandigarh 160 002
4. Govt. of Maharashtra Feed Analytical Laboratory
C/o. Wool Research Centre, Sheed Breeding Farms
Gokhalinagar, Pune 411 016.
5. Regional Feed Analytical Laboratory
Govt. of India, C/o. Central Poultry
Breeding Farms,
Aarey Milk Colony, Mumbai 400 065.
6. B V Rao Institute of Poultry Management & Technology
Urlikanchan, Pune, Maharashtra
7. Central Poultry training Institute
Govt. of India, Hessarghatta
Bangalore 560 088
8. TAPCO Feed Analytical Labs
No.2, Chamiers Road, Nandanam
Chennai 500 035
9. ICAR Research Complex for North East Region
Bishnupur, Shillong 793 004
10. Orissa University of Agriculture and Technology
Bhubaneshwar 751 003 Annexure - IX
Books/Periodicals on Cattle/Poultry Feeds
-------------------------------------------------------------------------------------------------------------
Sr Name of Book Author Publishers
No.
------------------------------------------------------------------------------------------------------------
1. Hand book of Animal Husbandry ICAR ICAR Bhavan
Pusa, New Delhi
2. Animal Nutrition and Feeding Practices S K Ranjhan Vikas Publishers, New Delhi
3. Feeding of Poultry Dr B Panda ICAR, N.Delhi
4. Poultry Nutrition S Bose -do-
5. Agro Industrial by products
and non conventional feeds
for livestock feeding S K Ranjhan -do-
6. Text book of Feed processing
Technology N Pathak Vikas publishers, New Delhi
7. Poultry Feed Technology H C Saxena International
Book Distri-
butors
8. Operation and Maintenance
of Cattle Feed Plants NDDB MIS, Mehsana
9. Indian Poultry Industry
Year Book(1994) P R Gupta A-25, Priya-
darshanivihar
New Delhi
10. Dairy India Year Book(1997) P R Gupta A-25, Priya-
darshanivihar
New Delhi
------------------------------------------------------------------------------------------------------------
Statement 1 : Commercial Poultry Feed Formulations
Sr.
No.
Ingredient Commercial Layer Feed


Chick Grower Layer


Cost Proportion Value Proportion Value Proportion Value


(Rs./
Kg)
(Kg) (Rs.) (Kg) (Rs.) (Kg) (Rs.)
1 Maize 4.88 511.90 2498.07 319.30 1558.18 391.50 1910.52
2 Rice Polish 4.00 50.00 200.00 50.00 200.00 50.00 200.00
3 Jowar 4.19 0.00 0.00 60.00 251.40 40.00 167.60
4 Rice Kani 5.00 50.00 250.00 100.00 500.00 60.00 300.00
5 DEO Rice Polish 3.00 0.00 0.00 124.10 372.30 0.00 0.00
6 DEO Groundnut cake 7.90 50.00 395.00 90.00 711.00 130.00 1027.00
7 DEO Soyabean meal 8.00 230.00 1840.00 80.00 640.00 110.00 880.00
8 Sunflower meal/extract 4.02 50.00 201.00 120.00 482.40 90.00 361.80
9 Limestone powder 1.00 5.00 5.00 5.00 5.00 20.00 20.00
10 Dicalcium Phosphate 11.26 10.00 112.60 10.00 112.60 10.00 112.60
11 Salt Pure 4.00 5.00 20.00 5.00 20.00 4.00 16.00
12 Poultry Mineral Mixture 2.00 30.00 60.00 30.00 60.00 30.00 60.00
13 Shell Grit/
Marble Grit
1.40 0.00 0.00 0.00 0.00 50.00 70.00
14 Vitamin and Probiotics Mix 30.00 6.00 180.00 6.00 180.00 13.00 390.00
15 D.L. Methionine 180.00 1.50 270.00 0.40 72.00 1.20 216.00
16 L.Lysine 140.00 0.60 84.00 0.20 28.00 0.30 42.00

Total(Kg)
1000.00 6115.67 1000.00 5192.88 1000.00 5773.52
Statement 1 : Commercial Poultry Feed Formulations (continuation ...)
Sr.
No.
Ingredient
Commercial Broiler Feed



Starter Finisher


Cost Proportion Value Proportion Value



(Kg) (Rs.) (Kg) (Rs.)
1 Maize 4.88 512.00 2498.56 573.00 2796.24
2 Rice Polish 4.00 50.00 200.00 0.00 0.00
3 Jowar 4.19 0.00 0.00 30.00 125.70
4 Rice Kani 5.00 0.00 0.00 20.00 100.00
5 DEO Rice Polish 3.00 0.00 0.00 0.00 0.00
6 DEO Groundnut cake 7.90 70.00 553.00 60.00 474.00
7 DEO Soyabean meal 8.00 280.00 2240.00 235.00 1880.00
8 Sunflower meal/extract 4.02 30.00 120.60 25.00 100.50
9 Limestone powder 1.00 5.00 5.00 5.00 5.00
10 Dicalcium Phosphate 11.26 10.00 112.60 10.00 112.60
11 Salt Pure 4.00 4.00 16.00 4.00 16.00
12 Poultry Mineral Mixture 2.00 30.00 60.00 30.00 60.00
13 Shell Grit/Marble Grit 1.40 0.00 0.00 0.00 0.00
14 Vitamin & Probiotics Mix 30.00 7.00 210.00 6.00 180.00
15 D.L. Methionine 180.00 1.50 270.00 1.50 270.00
16 L.Lysine 140.00 0.50 70.00 0.50 70.00

Total(Kg)
1000.00 6355.76 1000.00 6190.04
Statement 2 : Commercial Cattle Feed Formulation
Sr.
No.
Feed Ingredient Cost
(Rs./Kg)
Proportion
(Kg)
Value
(Rs.)
1 Deoiled Cakes (cotton seed, sunflower, corngluten, etc.) 8.00 150 1200.00
2 Cereals (maize, jowar, sorghum broken rice, etc.) 4.88 100 488.00
3 Deoiled rice bran 3.00 470 1410.00
4 Tapioca Products 3.00 100 300.00
5 Salt 4.00 20 80.00
6 Mineral (bone ash, lime, etc.) 10.00 20 200.00
7 Molasses 5.00 120 600.00
8 Urea 4.00 20 80.00

Total
1000 4358.00

Weighted average cost of raw materials Cost
(Rs./Ton)
Proportion
(Ton)
Value
(Rs.)
Broiler - Starter
- Finisher
6355.76
6190.04
0.125
0.125
794.47
773.76
Layer - Chick
- Grower
- Layer
6115.67
5192.88
5773.52
0.050
0.100
0.300
305.78
519.29
1732.06
Cattle - Feed 4358.00 0.300 1307.40
Total
1,000 5432.75
Statement 3 : Calculation of working capital requirements
(Rs. in lakhs)




Year
Sr.
No.
Particulars Period Cost
(Rs./ton)
1* 2 3 4
1 Capacity Utilisation --- --- 70 80 90 100
2 Raw materials consumption
including wastage (tonnes per day)


70.70 80.80 90.90 101.00
3 Raw materials inventory 45days 5433 172.85 197.54 224.24 246.93
4 Work in progress 1 day 5937 4.20 4.80 5.40 6.00
5 Packing material 30days 305 6.47 7.39 8.32 9.24
6 Power and Fuel 15days 160 1.70 1.94 2.18 2.42
7 Finished goods inventory 7 days 6193 30.65 35.03 39.41 43.79
8 Sundry debtors 7 days 6908 33.85 38.68 43.52 48.36

Less : Sundry creditors 7 days 5433 26.62 30.42 34.23 38.03

Total working captial requirement

223.09 254.96 286.83 318.70

Margin money on working capital

55.77 63.74 71.70 79.67

IIncremental margin on
working capital



7.97 7.96 7.97

Working capital loan

167.32 191.22 215.13 239.03

Interest on working capital loan
(@18% per annum)


15.06 34.42 38.72 43.03
* During first year the plant will be operated for 6 months only
# Including 1% wastage
Statement 4 : Capital cost of the Project
S.No. Particulars Quantity Specifi- cations Unit cost Total cost
Rs.in lakhs
1 2 3 4 5 6
1 Land 7 acres 50000 /acre 3.5
2 Land and site development
i) Land levelling 70000 cuf 2 /cuft 1.4
ii) Barbed wire fencing 850 r.mts. 150 /r.mts. 1.28
iii) Internal roads 300000 Lumpsum 300000 Lumpsum 3
iv) Gate 50 r.mts. 1000 r.mts. 0.5
v) Security cabin 30 Sq.mts. 3000 /Sq.mts. 0.9
Sub total 10.58
3 Civil Structures
i) Raw material and finished feed godown 2354 Sq.mts. 3500 /Sq.mts. 82.39
ii) Machinery Hall 250 Sq.mts. 7000 /Sq.mts. 17.5
iii Office cum laborratory 325 Sq.mts. 3770 /Sq.mts. 12.25
iv) Generator and switch room 90 Sq.mts. 3000 /Sq.mts. 2.7
v) Canteen and change room 200 Sq.mts. 3230 /Sq.mts. 6.46
vi) Garrage for vehicles 80 Sq.mts. 2150 /Sq.mts. 1.72
vii) Residential quarters
a. Manager (one) Sq.mts. 3500 /Sq.mts. 2.8
b. Supervisor (3) 150 Sq.mts. 3200 /Sq.mts. 4.8
c. Labourers (10) 150 Sq.mts. 2000 /Sq.mts. 3
viii) Architect fees 0.5 % of civil cum land development costs 0.7
Sub total 134.33
4 Plant and Machinery
i) Intake and grinding section 1 733000 /unit 7.33
ii) Mixing section 1 232000 /unit 2.32
iii Bagging and services 1 340000 /unit 3.4
iv) Electricals 1 164000 /unit 1.64
v) Steel strructures 1 297000 /unit 2.97
vi) Errection and commissioning Lumpsum -- 95000 Lumpsum 0.95
vii) Hopper speed control Lumpsum -- 180000 Lumpsum 1.8
and hopper & misc. equipment
viii) Transportation, insurance Lumpsum -- 355000 Lumpsum 3.55
etc.
ix) Boiler 1 310000 /unit 3.1
x) Pellet Mill 1 1838000 /unit 18.38
Sub total 45.44
5 Misc. fixed assets
i) Lab equipments Lumpsum -- 750000 Lumpsum 7.5
ii) Weighing machine Lumpsum -- 750000 Lumpsum 7.5
iii) Office furniture and computers Lumpsum -- 750000 Lumpsum 7.5
Sub total 22.5
6 Vehicles
i) Jeeps 2 No. 350000 /unit 7
ii) Motor cycles 2 No. 50000 /unit 1
Sub total 8
7 Electricals
i) Generator 1 125 KVA 500000 /unit 5
ii) Transformer and accessories Lumpsum -- 1500000 Lumpsum 15
and external lighting
Sub total 20
8 Water supply system Lumpsum -- 250000 Lumpsum 2.5
underground water lane
well, pump, filteration plant
etc.
9 Preliminary and pre-operative
expenses
i) Company formation expenses 2.5% of item no.1-8 15.21
ii) Capitalisation of interest As per statement No. 9 0
15.21
10 Margin money on working 25 % of total working capital requirement 0
capital
TOTAL PROJECT COST 68.21
MARGIN MONEY 25 % of the project cost 17.05
BANK LOAN 51.16
Statement 5 : Manpower Requirement
Sr.
No.
Manpower
(No.)
Requirement
(Per head)
Salary
(per month)
Total Salary
1 Manager 1 8,000 8,000
2 Accounts Officer 1 5,000 5,000
3 Maintainance Engineer 1 6,000 6,000
4 Sales Officer 1 5,000 5,000
5 Chemists 2 4,000 8,000
6 Floor supervisors 3 3,000 9,000
7 Operators 3 3,000 9,000
8 Stores Supervisor 1 2,500 2,500
9 Assistant Accountants 1 2,500 2,500
10 Electrical Supervisor 1 2,500 2,500
11 Mechanical Supervisor 1 2,500 2,500
12 Skilled workers 21 2,000 42,000

Total 37 --- 102,000

Incentives and Perks
(30% of the salary)


30,600

Total monthly payments

132,600
Statement 6 : Techno-economic parameters
S.No. Particulars






1 Capacity of the plant ( MT / 2shifts ) 100



2 No. of operating shifts per day 2

(8hrs/shift)



3 No. of working days in a year

First year 150

Second year 300



4 Capacity utilisation (%)

First year 70

Second year 80

Third year 90

Fourth year 100



5 Wastage of raw material (%) 1.00



6 Raw material consumption(MT)

First year 10605

Second year 24240

Third year 27270

Fourth year 30300



7 Average cost of Raw materials 5433

(Rs. per MT)



8 Power and fuel 160

(Rs. per MT of raw material consumed)



9 Cost of packing materials 305

(Rs. per MT feed manufactured)



10 Wages (Rs. per MT of feed manufactured) 39



11 Factory overheads 30

(Rs. lakhs per year)



12 Repairs and maintainance 2.40

(Rs. lakhs per year)



13 Administrative overheads 33

(Rs. lakhs per year)



14 Selling and distribution overheads 27

(Rs. lakhs per year)



15 Salaries, incentives and perks (Rs. in lakhs/ Month) with 5% increase per year 1.33







16 Product mix (%)

Comm. broiler - starter 12.50

Comm. broiler - finisher 12.50

Commercial Layer - Chick mash 5.00

Commercial Layer - Grower mash 10.00

Commercial Layer - Layer mash 30.00

Cattle Feed 30.00



17 Quantity of feed manufactured(MT)

First year 10500

Second year 24000

Third year 27000

Fourth year 30000



18 Sale price of feed (Rs. per MT)

Comm. broiler - starter(mash) 8200

Comm. broiler - finisher(mash) 8200

Commercial Layer - Chick mash 7050

Commercial Layer - Grower mash 6500

Commercial Layer - Layer mash 6850

Cattle feed - pellets 6000

Weighted average sale price of feed ( Rs. /MT ) 6908



19 Sale of Gunny bags(Rs. per bag) 9.00



20 No. of gunny bags per ton of raw material 13.33



21 Depreciation(WDM) - % : Buildings 10.00

Machinery 25.00

Vehicles 33.00



22 Income tax rate ( % ) 44.00



23 Interest rate on term loan (%) 15.5



24 Intrerest rate on working capital loan (%) 18



25 Repayment period (No. of quarters) 28



26 Moratorium(No. of quarters) 4







Statement 7 : Calculation of depreciation on written down value method

(Rs.in Lakhs)


Civil Structures Depreciation Plant and Machinery Depreciation Misc. Fixed Assets Depreciation
Year Value at begining ( @ 10 % per Value at begining ( @ 25 % per Value at begining ( @ 33 % per

of the year annum ) of the year annum ) of the year annum )







1 141.40 14.14 45.44 11.36 50.50 16.67
2 127.26 12.73 34.08 8.52 33.84 11.17
3 114.53 11.45 25.56 6.39 22.67 7.48
4 103.08 10.31 19.17 4.79 15.19 5.01
5 92.77 9.28 14.38 3.59 10.18 3.36
6 83.50 8.35 10.78 2.70 6.82 2.25
7 75.15 7.51 8.09 2.02 4.57 1.51
8 67.63 6.76 6.07 1.52 3.06 1.01
9 60.87 6.09 4.55 1.14 2.05 0.68
10 54.78 5.48 3.41 0.85 1.37 0.45
11 49.30 4.93 2.56 0.64 0.92 0.30







Statement 8 : Income and expenditure and tax liability


I II III IV V VI VII VIII IX X
I Expenditure:









1 Cost of raw materail 576.17 1316.96 1481.58 1646.20 1646.20 1646.20 1646.20 1646.20 1646.20 1646.20
2 Power and fuel 16.97 38.78 43.63 48.48 48.48 48.48 48.48 48.48 48.48 48.48
3 Packing material 32.02 73.20 82.35 91.50 91.50 91.50 91.50 91.50 91.50 91.50
4 Wages 4.09 9.36 10.53 11.70 11.70 11.70 11.70 11.70 11.70 11.70
5 Factory over heads 15.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00
6 Repairs and maintenance 1.20 2.40 2.40 2.40 2.40 2.40 2.40 2.40 2.40 2.40
7 Adm. over heads 16.50 33.00 33.00 33.00 33.00 33.00 33.00 33.00 33.00 33.00
8 Selling and distribution cost 13.50 27.00 27.00 27.00 27.00 27.00 27.00 27.00 27.00 27.00
9 Salaries 7.96 16.71 17.54 18.42 19.34 20.31 21.32 22.39 23.51 24.68
10 Interest on working capital 15.06 34.42 38.72 43.02 43.02 43.02 43.02 43.02 43.02 43.02













Total expenditure 698.47 1581.83 1766.76 1951.72 1952.65 1953.61 1954.63 1955.69 1956.81 1957.99
II Income:









1 Sale of feed
1657.92 1865.16 2072.40 2072.40 2072.40 2072.40 2072.40 2072.40 2072.40
2 Sale of gunny bags 12.72 29.08 32.72 36.35 36.35 36.35 36.35 36.35 36.35 36.35













Total income 738.06 1687.00 1897.88 2108.75 2108.75 2108.75 2108.75 2108.75 2108.75 2108.75












III Gross operational income 39.59 105.17 131.12 157.03 156.10 155.14 154.12 153.06 151.94 150.76
IV Depriciation on










i) Civil structures 14.14 12.73 11.45 10.31 9.28 8.35 7.51 6.76 6.09 5.48

ii) Plant and machinery 11.36 8.52 6.39 4.79 3.59 2.70 2.02 1.52 1.14 0.85

iii) Misc. fixed assests 16.67 11.17 7.48 5.01 3.36 2.25 1.51 1.01 0.68 0.45













Total depriciation 42.17 32.41 25.32 20.11 16.23 13.30 11.04 9.29 7.90 6.78
V Interest on term loan 0.00 34.26 28.17 22.08 15.99 9.90 3.81 0.00 0.00 0.00












VI Income after Depri. and -29.98 38.50 77.63 114.84 123.89 131.95 139.27 143.77 144.04 143.98

interest





















VII Income tax 0.00 16.94 34.16 50.53 54.51 58.06 61.28 63.26 63.38 63.35
VIII DSCR Calculation










Profit After Tax (PAT) -29.98 21.56 43.47 64.31 69.38 73.89 77.99 80.51 80.66 80.63

Add: Depriciation 42.17 32.41 25.32 20.11 16.23 13.30 11.04 9.29 7.90 6.78

Interest on term loan 27.40 34.26 28.17 22.08 15.99 9.90 3.81 0.00 0.00 0.00













Surplus available for repayment 39.59 88.23 96.96 106.50 101.59 97.08 92.84 89.80 88.56 87.41

Debt to be serviced










Repayment of T/L instalments 0.00 39.29 39.29 39.29 39.29 39.29 39.29 0.00 0.00 0.00

Interest on Term Loan 27.40 34.26 28.17 22.08 15.99 9.90 3.81 0.00 0.00 0.00

Total 27.40 73.55 67.46 61.37 55.28 49.19 43.10 0.00 0.00 0.00













Debt Service Coverage Ratio 1.44 1.20 1.44 1.74 1.84 1.97 2.15 0.00 0.00 0.00

Value* 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.00 0.00 0.00

Average DSCR 1.68








*The value is a notional figure to arrive at Average DSCR through computerised formula for any number of years i.e upto 10 years
Statement 9
Repayment schedule









(Rs. in lakhs)














Instalment: 9.82








Quarter O/S at the begining of the qtr. Recovery of principal Recovery of principal in the year Recovery of interest Recovery of interest in the year Total recovery in the qtr Total recovery in the year
1* 58.94 0.00
2.28
2.28
2* 176.81 0.00
6.85
6.85
3 235.74 0.00
9.13
9.13
4 235.74 0.00 0.00 9.13 27.40 9.13 27.40
5 235.74 9.82
9.13
18.96
6 225.92 9.82
8.75
18.58
7 216.10 9.82
8.37
18.20
8 206.27 9.82 39.29 7.99 34.26 17.82 73.55
9 196.45 9.82
7.61
17.43
10 186.63 9.82
7.23
17.05
11 176.81 9.82
6.85
16.67
12 166.98 9.82 39.29 6.47 28.17 16.29 67.46
13 157.16 9.82
6.09
15.91
14 147.34 9.82
5.71
15.53
15 137.52 9.82
5.33
15.15
16 127.69 9.82 39.29 4.95 22.08 14.77 61.37
17 117.87 9.82
4.57
14.39
18 108.05 9.82
4.19
14.01
19 98.23 9.82
3.81
13.63
20 88.40 9.82 39.29 3.43 15.99 13.25 55.28
21 78.58 9.82
3.04
12.87
22 68.76 9.82
2.66
12.49
23 58.94 9.82
2.28
12.11
24 49.11 9.82 39.29 1.90 9.90 11.73 49.19
25 39.29 9.82
1.52
11.34
26 29.47 9.82
1.14
10.96
27 19.65 9.82
0.76
10.58
28 9.82 9.82 39.29 0.38 3.81 10.20 43.10








* During first and second quarters the average balance is taken into consideration as the loan will be disbursed in a phased manner

Statement 10 : Cash flow analysis of the feed plant project
(Rs. in Lakhs)


Particulars Year


1 2 3 4 5 6 7 8 9 10












I Costs





















1 Capital Cost 314.32




















2 Cost of Production





















i Cost of raw materail 576.17 1316.96 1481.58 1646.20 1646.20 1646.20 1646.20 1646.20 1646.20 1646.20
ii Power and fuel 16.97 38.78 43.63 48.48 48.48 48.48 48.48 48.48 48.48 48.48
iii Packing material 32.02 73.20 82.35 91.50 91.50 91.50 91.50 91.50 91.50 91.50
iv Wages 4.09 9.36 10.53 11.70 11.70 11.70 11.70 11.70 11.70 11.70
v Factory over heads 15.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00
vi Repairs and maintenance 1.20 2.40 2.40 2.40 2.40 2.40 2.40 2.40 2.40 2.40
vii Adm. over heads 16.50 33.00 33.00 33.00 33.00 33.00 33.00 33.00 33.00 33.00
viii Selling and distribution cost 13.50 27.00 27.00 27.00 27.00 27.00 27.00 27.00 27.00 27.00
ix Salaries 7.96 16.71 17.54 18.42 19.34 20.31 21.32 22.39 23.51 24.68
x Interest on working capital loan 15.06 34.42 38.72 43.02 43.02 43.02 43.02 43.02 43.02 43.02
xi Income tax 0.00 16.94 34.16 50.53 54.51 58.06 61.28 63.26 63.38 63.35













Total cost 1012.80 1598.77 1800.91 2002.25 2007.16 2011.67 2015.91 2018.95 2020.19 2021.34












II Benefits





















1 Sale of feed 725.34 1657.92 1865.16 2072.40 2072.40 2072.40 2072.40 2072.40 2072.40 2072.40
2 Sale of gunny bags 12.72 29.08 32.72 36.35 36.35 36.35 36.35 36.35 36.35 36.35
3 Depriciated value of assets








52.78













Total benefits 738.06 1687.00 1897.88 2108.75 2108.75 2108.75 2108.75 2108.75 2108.75 2161.53













Discounted factor @15% 0.87 0.76 0.66 0.57 0.50 0.43 0.38 0.33 0.28 0.25

Discounted costs @15% 880.69 1208.90 1184.13 1144.80 997.91 869.70 757.85 660.00 574.26 499.64

Discounted benefits @15% 641.79 1275.62 1247.88 1205.68 1048.42 911.67 792.76 689.35 599.44 534.30













NPW 169.03





















BCR 1.02





















Discount factor @ 30 % 0.77 0.59 0.46 0.35 0.27 0.21 0.16 0.12 0.09 0.07

Net benefits -274.73 88.23 96.96 106.50 101.59 97.08 92.84 89.80 88.56 140.19

Discounted net benefits @30% -211.33 52.21 44.13 37.29 27.36 20.11 14.80 11.01 8.35 10.17


Total discounted net benefits at 30% = 14.10





Discount factor @ 35% 0.74 0.55 0.41 0.30 0.22 0.17 0.12 0.09 0.07 0.05

Net benefits -274.73 88.23 96.96 106.50 101.59 97.08 92.84 89.80 88.56 140.19

Discounted net benefits @35% -203.51 48.41 39.41 32.06 22.66 16.04 11.36 8.14 5.95 6.97


Total discounted net benefits at 35% = -12.51

















IRR 32.65 %
































Statement 11 : Break Even Analysis
(Rs. Lakhs)



I II III IV V VI VII VIII IX X
























I Sales income 738.06 1687.00 1897.88 2108.75 2108.75 2108.75 2108.75 2108.75 2108.75 2108.75












II Variable costs









1 Cost of raw materail 576.17 1316.96 1481.58 1646.20 1646.20 1646.20 1646.20 1646.20 1646.20 1646.20
2 Power and fuel 16.97 38.78 43.63 48.48 48.48 48.48 48.48 48.48 48.48 48.48
3 Packing material 32.02 73.20 82.35 91.50 91.50 91.50 91.50 91.50 91.50 91.50
4 Wages 4.09 9.36 10.53 11.70 11.70 11.70 11.70 11.70 11.70 11.70
5 Interest on working capital 15.06 34.42 38.72 43.02 43.02 43.02 43.02 43.02 43.02 43.02

























Total variable costs 644.32 1472.72 1656.81 1840.90 1840.90 1840.90 1840.90 1840.90 1840.90 1840.90












III Fixed costs





















1 Factory over heads 15.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00
2 Repairs and maintenance 1.20 2.40 2.40 2.40 2.40 2.40 2.40 2.40 2.40 2.40
3 Adm. over heads 16.50 33.00 33.00 33.00 33.00 33.00 33.00 33.00 33.00 33.00
4 Selling and distribution cost 13.50 27.00 27.00 27.00 27.00 27.00 27.00 27.00 27.00 27.00
5 Salaries 7.96 16.71 17.54 18.42 19.34 20.31 21.32 22.39 23.51 24.68
6 Interest on term loan 27.41 34.26 28.17 22.08 15.99 9.90 3.81 0.00 0.00 0.00
7 Depreciation 42.16 32.41 25.32 20.11 16.23 13.30 11.04 9.29 7.90 6.79













Total fixed costs 123.73 175.78 163.43 153.01 143.96 135.90 128.57 124.08 123.81 123.87













Contribution 93.75 214.28 241.06 267.85 267.85 267.85 267.85 267.85 267.85 267.85













BEP - % Capacity utilisation 92.39 65.63 61.02 57.13 53.75 50.74 48.00 46.33 46.22 46.25












Contribution = Sales icome - total variable costs

 
 

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