CHAPTER 1

INTRODUCTION

1
1.1 Introduction to Small-Scale Industries
Micro, Small, and Medium Enterprises (MSMEs) are the backbone of the Indian economy,
making major contributions to GDP, employment, and industrial growth. These businesses
operate in a variety of industries, including manufacturing, services, and commerce, and play
an important role in promoting entrepreneurship and regional development. According to the
Micro, Small, and Medium Enterprises Development (MSMED) Act of 2006 and subsequent
revisions, MSMEs are classified based on their investment in plant and machinery or
equipment as well as their annual revenue.
Table 1.1- Classification of Small-Scale Industries
C Annual Desc
Invest
l ription
Turnover
a ment in
s
Plant &
s
i Machin
f
ery/Equ
i
c ipment
a
t
i
o
n
Micro Up to Up to These enterprises operate on a
INR 1
Enterprise INR 5 very small scale, typically in
crore
crore rural or semi-urban settings.
They typically include
handicrafts, small-scale
manufacturing, and
service-based
businesses.
Small Up to Up to Small businesses employ a
INR 10
Enterprise INR 50 larger workforce and have more
crore
crore advanced technology skills than
micro-organisations. They
provide major contributions to
employment and industrial
production.
Medium Up to Up to Medium-sized enterprises serve
INR 50
Enterprise INR 250 as a bridge between small
2
 crore crore businesses and major
organisations. They require more
cash and have a significant
impact on
supply networks.
Source- Ministry of MSME, Government of India, 2023
 Economic contribution:
MSMEs account for 30% of India's GDP, making them important drivers of economic
growth. Their contribution is especially important in terms of job creation and export
growth.

3
 Employment Generation:
This industry employs about 110 million people, making it the second largest employer
behind agriculture.
 Exports:
MSMEs account for 48% of India's overall exports, primarily in textiles, gems and jewellery,
pharmaceuticals, and food processing.
1.2 Role of MSMEs
1.2.1 Employment Generation:
MSMEs employ 40% of India's workers, especially in rural and semi-urban areas where
multinational firms have limited influence. This helps to reduce unemployment and
increase income generation.
1.2.2 Industrial Production:
MSMEs account for 45% of India's overall industrial production, supporting important
manufacturing sectors such as textiles, auto components, and food processing, ensuring
the availability of low-cost products.
1.2.3 Export Contribution:
The MSME sector accounts for 48% of India's exports and has a substantial presence in
global supply chains. IT services, handicrafts, engineering goods, and medicines are
among the top export categories.
1.2.4 Innovation & Entrepreneurship:
MSMEs encourage innovation by assisting startups and research-driven companies. With
government initiatives such as Startup India, many MSMEs are participating in the
development of cutting-edge technology. rate (CAGR) of 9.0%, making it a major
contributor to India's economic standing.
(Source: Economic Survey of India, 2023)
1.3 Challenge of MSMEs
1.3.1 Access to Finance:
Because of collateral restrictions and exorbitant interest rates, only 16% of MSMEs can
obtain formal credit. Many people rely on informal sources, increasing their financial load.
(Source: RBI, 2022).
1.3.2 Regulatory Compliance:
MSMEs have difficulty complying with GST regulations, labour legislation, and
environmental standards. The complex legal structure poses operational obstacles and raises
costs.

4
1.3.3 Technology Adoption:
More than 75% of MSMEs lack access to contemporary technology, reducing productivity
and competitiveness. The expense of adopting new technologies is still a big obstacle.
1.3.4 Market Competition:
MSMEs struggle to compete with major firms and lower cost imported items, particularly
from China. Their lack of brand recognition and marketing expertise further restricts their
expansion potential.
1.4 Manufacturing Sector in India
The manufacturing sector encompasses industries that produce things utilising labour,
machinery, tools, and chemical or biological processing. It has a significant impact on a
country's economy by stimulating industrialisation, creating jobs, and increasing exports.
Manufacturing contributes significantly to India's GDP, jobs, and foreign exchange profits.
In FY 2023-24, manufacturing accounted for 17% of India's GDP, while the industrial sector
(including manufacturing, mining, and construction) contributed 27.62% ( ₹73.93 lakh crore).
India wants to expand manufacturing's contribution of GDP to 25% by 2025, with
government initiatives like Make in India, the Production-Linked Incentive (PLI) scheme,
and Atmanirbhar Bharat.
An important pillar of India's economy, the manufacturing sector makes a substantial
contribution to both industrial output and the generation of jobs. The Indian government
estimates that by 2025, the manufacturing sector will employ over 115 million people and
account for about 18.7% of the country's GDP. Vehicle manufacturing, pharmaceuticals,
textiles, chemicals, machinery, and food processing are some of its industries. The industry is
driven by both large-scale industries and a robust network of micro, small, and medium-sized
business (MSMEs).
Thanks to programs like Make in India, Production-Linked Incentive (PLI) schemes, and FDI
reforms, India is one of the manufacturing hubs with the fastest rates of growth in the world.
Solid momentum in the manufacturing sector is indicated by the Index of Industrial
Production's (IIP) steady growth rate of 6.2% in 2025.
Rapid industrialization and technological advancements like automation, artificial
intelligence (AI), and the Internet of Things (IoT) are revolutionizing manufacturing. The
Manufacturing Purchasing Managers' Index (PMI) for India remains above 56 in 2025,
indicating an increase in factory activity. The government has also implemented policies
under Atmanirbhar Bharat to strengthen domestic production and reduce reliance on imports.

5
Despite its growth, the sector faces challenges like skill gaps, fluctuating raw material costs,
and infrastructure constraints. To address these issues, the government has introduced a
number of incentives, including tax breaks, subsidies, and easier access to credit for MSMEs.
Investor trust in India's production capability is demonstrated by the $25 billion total foreign
direct investment (FDI) entry into the country's manufacturing sector in 2025, according to
the Department for Promotion of Industry and Internal Trade (DPIIT). Over the next five
years, the manufacturing sector is anticipated to grow at a compound annual growth rate
(CAGR) of 9.0%, making it a major contributor to India's economic standing.
1.5 Cattle Feed Industry
The demand for premium animal nutrition has led to steady growth in India's cow feed sector
over the last ten years. The worldwide cow feed market was estimated to be worth ₹69,222
crores in 2024 and is expected to grow at a compound annual growth rate (CAGR) of 4.4%
to reach ₹1,06,074 crores by 2034. India is expected to rank among the top three global
markets for cattle feed, accounting for 25% of the world's milk supply.
Both domestic and foreign businesses are competing for market share in the disorganized
Indian cow feed industry. Godrej Agrovet, Amul Cattle Feed, Suguna Foods, Avanti Feeds,
and Cargill India are important players in this industry. Businesses are concentrating on
developing new products, such as organic and fortified cattle feed, to meet the growing
demand for wholesome nourishment among dairy farmers.
To display their newest products, cattle feed producers take part in a number of industry
gatherings, including Agri Expo, Dairy Tech India, and the Global Dairy Congress. To
increase market presence, aggressive approaches are being used such as direct-to-farm
delivery models, farmer education initiatives, and bulk discounts.
A large livestock population, rising farmer disposable incomes, and greater understanding of
scientific feeding techniques have all contributed to India's continued status as one of the
fastest-growing markets for cow feed. But the sector also has to contend with issues including
unstable raw material costs, supply chain interruptions, and seasonal variations in demand.
The Dairy Entrepreneurship Development Scheme (DEDS), Pradhan Mantri Kisan Samman
Nidhi (PM-KISAN), and NABARD subsidies for animal husbandry are just a few of the
programs the Indian government offers to promote the industry. These programs help small-
scale producers of cow feed expand their market reach and embrace scientific feed
formulation methods.
Although challenges exist, the rise of dairy farming, technological developments in feed
manufacturing, and rising consumer demand for organic and personalized feed solutions are

6
all predicted to propel the robust growth of India's cattle feed sector. (Indian Cattle Feed
Industry Growth | IBEF, 2024)

Cattle Feed Industry Growth 2024–2032 (forecasted)

Figure 1.1 Cattle feed industry growth

Source: https://www.futuremarketinsights.com/reports/cattle-feed-market
Note: These projections are based on factors such as the increasing cattle population, rising
demand for animal-based products, and supportive government initiatives in the livestock
sector.

7
 1.6 Entrepreneur’s Profile
SANJAY R J

MOBILE: +91 6383728209 EMAIL ID: [email protected]

EDUCATION
Course/Curriculum Year Institution Percentage

CHRIST (Deemed to be University),

BBA 2023-26 Kengeri Campus, Bengaluru 77.63
CGPA
CBSE (Class XII) 2023 Paavai Vidhyashram Global School,
Namakkal 91.5%
CBSE (Class X) 2021 Paavai Vidhyashram Global School,
Namakkal 72.5%\

CERTIFICATION AND INTERNSHIP

 Certified Summer Internship at Inner Wheel Club. (May 2023 to June, 2023)
 Certified course at Swayam in Soft Skills. (November, 2024)
Worked as Intern and raised funds that went towards the upliftment of environment and creating an
equitable society. And enhanced their financial enrichment through my knowledge.
 Research analytics certification course in NISM by SEBI. (January 2025)

POSITIONS OF RESPONSIBILITY
 Head of Logistics department under the ALUMNI Committee in Christ ( Deemed to be University)
.2025-2026
 Member of ‘Piksels’ photography club under CUSBMA, Christ (Deemed to be University).
 Vice president of Social Concern Activity (SCA) in Paavai Vidhyashram Global school.
 Volunteer Member of Centre for social Action (CSA) under Media and advocacy cohort,
Christ (Deemed to be University).
 served as a Member at ‘Prudentia’ the HR club under social media cohort under CUSBMA,
Christ (Deemed to be University). (2024)

EXPERIENCES
 Served in an NGO (Inner Wheel Club) for 30+ hours .
 Into the top 6 of Marketing in Spectra 2023 flagship even under CUSBMA, Christ (Deemed to
be University). (2024)
 Served as Media volunteer member under organizing committee of Magnovite a flagship event,
Christ (Deemed to be University). (2023 & 2024)
 Served as Volunteer member in Amilio’s flagship sports event under CUSBMA, Christ (Deemed to
be University). (2023 & 2024)

SKILLS
 MS tools ( Excell, Word , Power Point)
 BI tools, (Power BI ,Tablue)
 Emotional Intelligance
 Problem Solving
 My SQL

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9
10
 DEEPTI C
MOBILE: +91 9008360666
EMAIL ID: deepti.c@bba christuniversity.in
RESEARCH AND PROJECTS

Bachelor of 2023-2026 Christ (Deemed to University) 3.52/4

Business and
Management
PUC 2023 RNSIT 96.83%

10 STD 2021 BGS Public School 80%

RESEARCH AND PROJECTS

1. Ongoing Research, Entrepreneurship in Times of Economic Downturns

Currently conducting a comprehensive study on the impact of economic downturns on
entrepreneurial ventures, analyzing challenges and strategies for business resilience and
growth
2. Ongoing Entrepreneurial Development on stage based cattle feed
3. Social Concern Project
Worked in Sneha Jyothi NGO and trained underprivileged children on self hygiene
4. Ongoing Project on product-Self Healing Bandage

CERTIFICATIONS AND COURSES

 Received Oustanding in Soft skills Christ(Deemed to be be University)

 Received Oustanding in Tableau(Deemed to be be University)
 Successfully completed Acmegrade Certification course
 Logistics and Supply Chain Managemnet-NPTEL
 Received Oustanding in MS Excel (Deemed to be be University)

EXTRACURRICULAR ACTIVITIES

 Won 2nd place in Darpan – Proscenium Theatre

 Participated in Science Exhibition conducted by Army Public School
 Décor Volunteer in Magnovite
 Participated in NIE School Super League
 Participated in Kaleido
 Decor volunteer in CUSBMA inaugural function

11
 1.7 Approximate Investment
Table 1.2- Approximate Investment

Source of Funds Amount (₹) Percentage(%)

Partner – 1 25,00,000 16.7

Partner – 2 25,00,000 16.7

Partner – 3 25,00,000 16.7

Bank Overdraft (overdraft facility at from SBI 10% interest)25,00,000 16.7

State Bank of India (term loan under Credit Guarantee Fund50,00,000 33.3
Scheme for Micro and Small Enterprises (CGS-I) at 10%
interest per year)
Total Investment 1,50,00,000 100
Source- By Author
1.7.1 Partners' Equity Contribution (₹75 Lakhs, 50%)
50% of the entire investment is covered by the three partners' combined contributions of ₹75
lakh, or ₹25 lakh (16.7% each). By lowering the need for outside borrowing, this sizeable
equity contribution lowers interest costs and financial risk. It also guarantees solid financial
support by demonstrating the partners' dedication to and faith in the company.
1.7.2 Bank Overdraft (16.7%, ₹25 Lakhs)
SBI offers a ₹25 lakh overdraft facility with 10% APR. Without having to make set monthly
repayments, this flexible financing option enables the company to handle short-term liquidity
demands, such as working capital requirements. Overdrafts give businesses financial
flexibility by allowing them to take out money as needed and pay it back when cash flow
allows, which makes them perfect for managing operational expenses.
1.7.3 Credit Guarantee Fund Scheme Term Loan (₹50 Lakhs, 33.3%)
Because it doesn't demand collateral, this 10% percent government-backed loan from SBI is
perfect for small enterprises because it lowers financial risk. It is a safe and reasonably priced
funding alternative because of the structured payback schedule, which guarantees consistent
debt payments. This loan is the best option because it provides A balanced debt-to-equity
ratio guarantees stability without taking on too much debt.
 Low-Risk Borrowing: Funding without collateral is available under the CGS-I program.
 Flexible Working Capital: Everyday operations are supported by the overdraft capacity.
 Controllable Interest Costs: The 10% interest rate is reasonable and competitive.

12
 CHAPTER 2

EXECUTIVE

SUMMARY

13
2.1 About the Company
Three business owners, Sanjay RJ, Deepti C, and Vennela, created Cow Care, a partnership
registered under "The Partnership Act 1932." By creating cutting-edge, stage-specific bovine
feed for the many periods of a cow's life, Cow Care seeks to transform livestock nutrition and
guarantee the best possible health, productivity, and sustainability.
The product line from Cow Care provides complete nutritional support for dairy farming
operations by offering customized feed solutions for heifers, calves, pregnant cows, and
nursing cows. In the cutthroat cattle feed industry, we stand out for our dedication to quality,
cost, and scientific formulation.
2.1.1 Mission: Enhancing dairy productivity through tailored nutrition
solutions.
Our mission is to enhance the well-being, efficiency, and financial success of dairy farms
by offering premium, stage-specific bovine feed that satisfies the dietary requirements of
cows throughout their entire life cycle. Our goal is to provide farmers with sustainable,
inventive, and dependable feed options.
2.1.2 Vision: Leading the future of livestock nutrition.
Our vision is to become the most reputable and cutting-edge cow feed company, known for
our dedication to high-quality, scientifically supported formulations and first-rate customer
support. By using modern nutrition, we hope to revolutionize dairy farming methods and
assist farmers in becoming more sustainable and efficient.
2.2 Course of Action
2.2.1 Market Research
Cow Care carries out comprehensive market research to comprehend the requirements,
feeding habits, and market trends of dairy farmers. Surveys, competition analyses, and
nutritional studies conducted in conjunction with dairy consultants and veterinary specialists
are all part of the research.
2.2.2 Product Development & Testing
For the many stages of a cow's life, the firm creates scientifically balanced bovine feed. To
make sure feed formulas meet FSSAI and BIS certification requirements, tests are conducted
in veterinary clinics and agricultural research facilities.
2.2.3 Manufacturing & Infrastructure
To guarantee quality and efficiency, a cutting-edge production facility is set up with
automated processing, mixing, and packaging machines. At each step, quality control
procedures are used to ensure feed uniformity.

14
2.2.4 Branding & Marketing Strategy
Through partnerships with dairy cooperatives, direct farmer outreach, and social media, Cow
Care establishes a strong brand presence. The business runs health awareness campaigns for
cattle, product trials, and educational workshops.
2.2.5 Distribution & Sales Expansion
With direct-to-farm supply models, bulk suppliers, and regional distributors, a strong supply
chain is established. The objective is to provide farmers across the country with easy access
to high-quality cow feed.
2.2.6 Financial Planning & Sustainability
Bank loans, government subsidies like PM-KISAN and NABARD Dairy Schemes, and
partner investments provide the funding. It has a three-year break-even plan while pursuing
long-term growth into new product categories and geographical areas.
2.3 Purpose of Selection of Business
2.3.1 Rising Demand for Structured Cattle Nutrition
Although India provides 25% of the world's milk supply, many dairy farmers continue to use
traditional feeding practices. This creates a high-potential business opportunity
2.3.2 Addressing Nutritional Gaps in Dairy Farming
Many small and medium-sized dairy farmers do not have access to high-quality, reasonably
priced cattle feed, which results in low milk yield and health problems for their animals. Cow
Care seeks to fill this gap by providing customized and reasonably priced cattle nutrition
solutions.
2.3.3 Government Incentives & Industry Support
The Indian government supports dairy farming through subsidies, MSME funding, and
NABARD Dairy Infrastructure Schemes. These initiatives promote the expansion of
structured cattle feed manufacturing, making it a strategic and sustainable business.
2.3.4 Effect on the Rural Economy and the Dairy Industry
Cow Care supports rural jobs, boosts milk production, and increases dairy farm profitability
by enhancing cattle nutrition. In terms of dairy production, the company helps India become
self- sufficient.
2.3.5 Long-Term Profitability
The cattle feed market is anticipated to continue expanding as a result of growing awareness
of sustainability and livestock health. Long-term profitability and scalability are ensured by
Cow Care's emphasis on pricing, market expansion, and formulas guided by research.

15
2.4 Product Description
Cow Care specializes in stage-specific bovine feed, which was created to meet the particular
dietary requirements of animals during various phases of growth:
2.4.1 Cow Care Grow+: Calf Stage (0-7 months)
A high-energy diet to stimulate fast growth and immune system development. Rice, wheat,
maize, and protein sources like groundnut oil cake make up the diet, which gives the calves a
strong foundation for good health.
2.4.2 Cow Care Vital+: Heifer Stage (7-15 months)
Young animals that receive a balanced diet are better prepared for reproduction. This stage
offers additional vitamins and minerals to support bone growth and reproductive health.
2.4.3 Cow Care Nurture+: Pregnancy Stage (After 15 Months)
Protein-rich meal with coconut oil cake and specific supplements to enhance foetal growth
and mother cow health.
2.4.4 Cow Care Milk-Max: Lactation Stage (Post-Pregnancy)
It is a high-energy, mineral-rich meal intended to promote milk production and aid in
postpartum recuperation. This recipe includes fat, protein, and calcium additives to help boost
milk quality and quantity.
2.5 Target Audience:
Cow Care's target audience consists of dairy producers, cooperative organizations,
veterinary professionals, and agribusiness wholesalers. Cow Care ensures that its
scientifically formulated feed reaches those in greatest need by focusing on key dairy
industry stakeholders.
2.5.1 Small and medium-sized dairy farmer:
They are the key customers for cost-effective, high-quality feed to boost milk yield and
animal health. Many small-scale farmers struggle with traditional feeding methods and would
benefit from Cow Care's organized nutrition solutions.
2.5.2 Large-Scale Dairy Farms and Cooperatives:
These businesses oversee several cows and prioritize scientifically formulated feed to
maximize productivity and animal health.
2.5.3 Veterinarians and Dairy Consultants:
These are professionals who offer feed solutions based on cow health and productivity
requirements. Cow Care works with farmers to improve formulas and educate them.

16
 CHAPTER 3

PARTNERSHIP

DEED

17
 Figure 3.1: Government Agreement Seal

Source: Government Website (National Portal of India. (n.d.).

https://www.india.gov.in/)

Partnership Deed

This DEED OF PARTNERSHIP was made on 2nd January 2025, Tuesday between Sanjay
RJ, Deepti C, Sai Vennela. Hereinafter called the partner, the first part, second part and
Third Part respectively.

WHEREAS the parties of the First, Second and Third Party by their partnership deed dated
2nd January 2025, have been carrying on the business of Cattle feed under the name and Cow
Care with headquarters at Bangalore, Karnataka under the same name and style.

AND WHEREAS the Party of the Third Part, Second Part & First Part has expressed its
desire and willingness, hence mutually decided to enter the partnership with each other.

AND WHEREAS it is deemed necessary and desirable that a regular Deed of Partnership be
reduced in writing and executed on the terms and conditions mentioned hereunder.

18
NOW THIS DEED WITNESS AS FOLLOWS:
Business Name and Nature:
Cow Care will be the partnership's moniker. The company will produce and market specialty
cattle feed for the various periods of a cow's life.
Business Location:
Bangalore Rural or Tumkur will serve as the primary place of business, or any other location
determined by the partners.
Partnership Duration:
The partnership will start on 2nd January 2025 and last until both parties choose to end it.
Capital Contribution:
The partners will make the following capital contributions:
Deepti C: ₹25,00,000
Sanjay: ₹25,00,000
Sai Vennela: ₹25,00,000
Any additional funds that are needed must be donated by both parties.
Management and Decision Making:
Every partner must take an active role in the company's operations.
All partners' approval is required for major decisions.
Unless otherwise agreed, daily activities will be controlled collaboratively.
Bank Account:
Cow Care will be the name of the partnership's bank account. Any two partners' joint
signatures are required for withdrawals.
Salaries and Remuneration:
Unless all partners agree, no partner may receive a salary.
Admission of new partner:
All current partners must agree before a new partner can be admitted.
Partner Expulsion and Retirement:
A minimum of three months' written notice is required before a partner can retire.
With the agreement of the other partners, a partner may be kicked out for misbehavior, fraud,
or noncompliance with commitments.
Dissolution:
By mutual consent, the partnership may be terminated. Liabilities and assets will be
distributed in accordance with the provisions of the dissolution.

19
The maintenance of appropriate books of accounts:
The maintenance of books is required under Accounting and Audit. Every year, an audit will
be carried out to evaluate the financial situation.
Dispute Resolutions:
Any disagreement must be settled peacefully. It will be sent to arbitration if it cannot be
resolved. IN WITNESS WHEREOF, the parties of the first and the second part here have put
their respective hands on this DEED OF PARTNERSHIP on the day, month and year first
mentioned above.
The witness has signed the following
document. WITNESSES
Sanjay RJ, Deepti C & Sai Vennela.

PARTNER:
1. Sanjay RJ
2. Deepti C
3. Sai Vennela

Signature:

20
 CHAPTER 4

MARKETING

SURVEY

21
4.1 Feasibility of the project
4.1.1 Market Feasibility
 Demand Analysis: With more than 75 million dairy producers, India has a sizable
dairy sector. The need for specialized nutritional feed is rising as attention turns to the
health and milk production of cattle.
 Target Market: Agribusinesses, cooperatives, cattle ranchers, and dairy
producers.
 Competitor Analysis: While well-known companies like Amul, Cargill, and Godrej
Agrovet provide cow feed, few concentrate on age-specific formulas.
4.1.2 Technical feasibility
The manufacturing process necessitates knowledge of feed formulation, the acquisition of
raw materials, quality assurance, and adherence to animal nutrition guidelines.
 Raw Materials: Sustainable sourcing is required for ingredients such as soybeans,
maize, vitamins, and minerals.
 Machinery & Infrastructure: Pelletizers, packaging units, and mixing equipment
required for effective manufacturing.
4.1.3 Financial Feasibility
 Initial Investment: Land, labor, equipment, and raw material costs. Given that feed
purchases are recurrent, a product with a strong distribution network and a well-
positioned position might yield significant profits.
 Break-even Analysis: Marketing efficacy, distribution efficiency, and economies of
scale all affect profitability.
4.1.4 Operational Feasibility
 Supply Chain: dependable raw material acquisition and effective delivery to
cooperatives and dairy farms.
 Manpower: Production management, quality assurance, and feed formulation all
require skilled labor. Respect for FSSAI and BIS requirements for cow feed is known
as “Regulatory Compliance.”
4.1.5 5. Social and Environmental Viability
 Sustainability: Using eco-friendly packaging and organic materials might
increase market appeal.
 Social Impact: Better cow health can raise milk output and farmer income, which is
in line with the objectives of rural development.

22
 4.2 Market Survey Analysis

Figure 4.1: Usage of stage specific cattle feed

Source: Questionnaire (Cow Care. (n.d.). Google Forms

According to the market survey, 44% of participants do not now feed their livestock stage-specific feed,
whereas 56% do. According to the findings, there appears to be a reasonable amount of awareness
about the advantages of feeding cows age-appropriate food. There is a good market opportunity
because the majority of respondents already use this type of feed, indicating a need for specific
nutritional products. This market is probably more open to the Cow Care product, particularly if it
provides excellent quality, reasonable prices, and extra advantages like increased immunity, better
digestion, and increased milk production for calves.
According to the survey, 44% of participants do not utilize stage-specific cow feed, a market niche with
substantial room for expansion. This segment can be cost-conscious or ignorant of the advantages.
This group can be turned into potential clients with the help of a robust awareness campaign,
educational initiatives, and trial runs.
Encouragement of adoption among traditional cattle owners can be achieved by providing affordable
prices, subsidies, or initial reductions. By tackling issues like accessibility, cost, and awareness, the
Cow Care product can successfully increase its market share.

23
 Figure 4.2: Awareness of stage-based nutrition for cows
Source: Questionnaire (Cow Care. (n.d.). Google Forms

The survey shows that 60% of participants know that stage-based diet is beneficial for cows, whilst
40% do not. This shows that dairy producers and cow owners have a moderate understanding of age-
appropriate nutritional feed. This indicates a promising market for Cow Care goods because this
market is probably looking for premium nutritional solutions to increase the longevity, productivity,
and health of cattle. Testimonials and scientific validation are examples of successful marketing
techniques that can increase product trust.
The 40% who are ignorant of the advantages of stage-based diet, however, point to a serious
information gap. This gives the business the chance to teach farmers about how good nutrition at
various phases of a cow's life can enhance milk output, fertility, and general cow health through
awareness campaigns, workshops, and on-field demonstrations. Effective communication with this
market can be achieved through targeted marketing initiatives like leaflets, digital content, and
partnerships with regional dairy cooperatives.
All things considered, these results indicate that although there is a demand for the Cow Care product,
increasing market penetration would require a two-pronged strategy that focuses on educating
ignorant consumers and interacting with knowledgeable ones. The business can establish itself as a
pioneer in cattle by filling up knowledge gaps and providing useful advantages.

24
 Figure 4.3: Preferable of purchasing of stage-based nutrition for cows
Source: Questionnaire (Cow Care. (n.d.). Google Forms.

According to the market study results, there is a high potential demand for the Cow Care product;
84% of participants said they would be willing to purchase specialized feed that is suited to the
various stages of a cow's life, while only 16% said they would not be interested. According to this
overwhelmingly positive reaction, cattle owners are willing to spend money on items that improve the
productivity and health of their animals and acknowledge the need of stage-specific nutrition. Due to
the product's alignment with current demand, the high percentage of interested purchasers offers a
positive market entry opportunity.
One possible explanation for the 16% of respondents who are unwilling to buy specialist feed is that
they are cautious because of the expense, ignorance, or doubts about the advantages. Targeted
approaches, such as educational initiatives, trial kits, and early adopter endorsements, might be useful
in proving the product's worth to this market. Furthermore, collaborations with government
agriculture programs, veterinarians, and dairy cooperatives could promote adoption and foster trust.
Overall, these results point to a high percentage of market acceptability, which reflects well for Cow
Care. The company may increase its market share and position itself as a pioneer in cattle feeding
solutions by concentrating on quality control, competitive pricing, and awareness-raising campaigns.

25
 Figure 4.4: Assumptions that stage-based nutrition for cows yields more milk
Source: Questionnaire (Cow Care. (n.d.). Google Forms

The results of the study shows that 90% of participants strongly believe that stage-specific feed can
boost milk yield in dairy farming, with only 10% expressing doubt. A high degree of awareness and
acceptance of the function of nutrition in dairy productivity is highlighted by this overwhelmingly
positive view. Customized diet during various life phases can maximize development, lactation, and
general health, which results in increased milk supply, as farmers and dairy owners are aware.
This is a great market opportunity for Cow Care because most potential buyers are already aware of
the advantages of the product. It might need more research, product testing, and scientific
confirmation to persuade the 10% of people who do not think stage-specific nutrition has an impact.
This gap might be filled by showcasing before-and-after outcomes via case studies, testimonials, and
partnerships with dairy cooperatives.
With such a high percentage of acceptance, the business can boldly market its product as a results-
driven, scientifically supported solution for dairy producers. Building trust, showcasing actual success
stories, and providing trial programs are all important components of marketing techniques that aim to
increase adoption. According to the results, Cow Care is a high-potential business since it is joining a
market with a lot of interest and demand already.

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 Figure 4.5 Willingness to invest in stage-based nutrition for cows
Source: Questionnaire (Cow Care. (n.d.). Google Forms

According to the survey results, only 14% of participants are hesitant to spend money on premium
cattle feed, but 86% are eager to do so if it guarantees improved productivity and health. This high
level of investment readiness indicates that Cow Care's stage-specific nutritional feed has a substantial
market potential. Cattle owners and farmers are aware of the long-term advantages of high-quality
feed, which include increased milk production, increased fertility, and improved animal health in
general.
This creates a very advantageous market environment for Cow Care, since most prospective clients
are already willing to spend money on high-quality feed. Pricing tactics, value demonstration, and
awareness campaigns can all help to allay the remaining 14% of hesitant buyers' worries regarding
affordability, cost-effectiveness, or observable benefits. Educating farmers about the return on
investment (ROI) from improved cattle production and health should be the main goal of a successful
marketing strategy. Skeptical buyers can be persuaded by testimonials, farm case studies, and trial
programs that provide a risk-free experience
Price-sensitive clients can also be attracted with the use of loyalty programs, bulk purchase discounts,
and flexible pricing structures. Cow Care has a great chance to become a reputable brand with
scientifically developed nutritional solutions that meet the demands and expectations of farmers because
of the strong readiness to invest.

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 Figure 4.6: Does trial or discounts motivate to buy the product
Source: Questionnaire (Cow Care. (n.d.). Google Forms

To encourage farmers to test a new cow feed product, the market study results show a high preference
for trial packs or promotional discounts. Only 8% of the 50 respondents said they would not be
motivated to test the product if such offers were available, whereas a resounding 92% said they
would. This implies that when farmers are choosing a new nutritional feed for their cows, perceived
risk and cost are important considerations.
These results highlight the significance of a well-planned marketing approach for the cow care
startup, which should include free samples, introductory discounts, or bundled deals to draw in new
customers. Because these promos are so well received, using these incentives can help with product
trials, foster trust, and ultimately increase customer retention. Additionally, educational programs that
highlight the unique nutritional advantages catered to various cow age groups can be a good way to
supplement these offerings.
Offering a risk-free trial period may boost confidence in the product's usefulness, as farmers often
place equal weight on cost-effectiveness and shown advantages. Additionally, getting trial users'
opinions might yield insightful information that helps improve the product and its place in the market.

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 Figure 4.7: Preference of purchasing from local distributors and cooperatives
Source: Questionnaire (Cow Care. (n.d.). Google Forms.

According to the findings of the market survey, 70% of participants prefer to buy cattle feed via
regional cooperatives and distributors, whilst 30% disagree. This suggests a heavy dependence on
conventional distribution networks, where factors like accessibility, trust, and existing connections are
important when making judgments about what to buy. Local distributors and cooperatives are
probably preferred by farmers because of things like product availability, loan alternatives, and
tailored advice.
These observations highlight how crucial it is for the cow care startup to collaborate with regional
distributors and cooperative organizations in order to guarantee product adoption and reach. Creating
effective distribution channels within these networks might assist increase the product's legitimacy
and accessibility for farmers who depend on it. Utilizing cooperative societies can also promote
community- driven product adoption and help with bulk sales.
Market penetration can be increased by using a hybrid distribution strategy that makes use of both
conventional and contemporary sales channels. Farmers might be encouraged to embrace the product
by means of educational campaigns and demonstrations at local farming events or cooperative
meetings.

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 Figure 4.8: Affordability concern while choosing a product
Source: Questionnaire (Cow Care. (n.d.). Google Forms

According to the survey's findings, 80% of participants said that cost is a key consideration when
selecting cow feed products, compared to just 20% who do not. This suggests that farmers look for
cost- effective solutions without sacrificing nutritional content, hence price is a major factor in their
purchase selections. Since cattle feed is a continuous investment, affordability plays a crucial role in
determining brand loyalty and long-term adoption.
Price-sensitive consumers might be drawn in by introducing competitively priced goods, providing
discounts for larger purchases, and allowing flexible payment methods. Furthermore, farmers must
see the observable returns on their investment in high-quality nutritious feed, such as better cattle
health, higher milk yields, and total cost savings.
Teaching farmers about the long-term financial advantages of adopting nutritionally balanced feed
that is suited to the various age groups of cows should be the main goal of marketing campaigns.
Product demos, data-driven proof, and early adopter testimonials can all contribute to the
development of trust. By presenting itself as an affordable yet superior choice, the cow care firm can
successfully enter the market and build a solid clientele.

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 Figure 4.9: Consideration of switching to scientifically formulated stage based option
Source: Questionnaire (Cow Care. (n.d.). Google Forms

According to the survey findings, 26% of participants are apprehensive about moving from their
existing cow feed to a stage-based alternative that has been scientifically developed, but 74% of
respondents are open to the idea. As long as farmers perceive definite advantages in terms of cow
productivity and health, this indicates a strong desire on their part to embrace more specialized and
nutritionally optimal feed solutions. The 74% acceptance rate indicates that more people are realizing
the value of customized diets for cows at various times of life, which may improve growth, milk
production, and general health.
This information offers a big chance for the cow care firm to market its product as a cutting-edge,
scientifically supported to substitute for conventional cattle feed. But is important to address the
concerns of the 26% who are hesitant to switch. Opposition may be due to comfort in sticking to tried-
and-true feeding methods, worries about the cost, or doubts about the efficacy of novel formulations.
In order to optimize adoption, the business should concentrate on educating and raising knowledge
about the advantages of stage-based feeding. Farmers might be encouraged to make the switch
gradually by offering sample packs, special prices, and early adopter testimonies. The startup may
effectively gain market share by showcasing measurable enhancements in cow health and agricultural
profitability.

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 Figure 4.10: Are informational workshop and demonstration helpful
Source: Questionnaire (Cow Care. (n.d.). Google Forms

According to the poll, 74% of participants say that informational seminars and demonstrations are
beneficial when implementing new food habits, but 26% disagree. It underscores the robust need for
teaching programs to ease the shift to stage-based, scientifically developed cattle feed. For farmers to
become confident about abandoning conventional practices, they might need useful information on
the advantages, applications, and effects of specialized nutrition.
This offers the cow care startup a chance to gain credibility through focused workshops, in-person
demonstrations, and professional advice. These programs can address issues, demonstrate the
efficiency of stage-based feeding, and reaffirm the advantages for cattle's health and economy.
Furthermore, case studies and early adopter testimonies can help spread knowledge even more.
Alternative strategies including digital content, brochures, and on-farm visits could be investigated to
engage the 26% of people who are less likely to attend such sessions by Brochures, digital content,
and on-farm visits are some more ways to reach the 26% of people who are less likely to attend such
sessions, by focusing on farmer education and practical experience, the startup may increase product
adoption and facilitate the shift to improved feeding methods.

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4.3 SWOC Analysis
4.3.1 Strengths:
 Innovative Product Design: Customized cattle feed for particular life stages guarantees
the best possible nutrition, well-being, and output.
 Brand Differentiation: Building trust with customers, "Cow Care" promotes an animal-
centric and scientific approach.
 Target Market Focus: Catering to farmers and livestock owners looking for specialized,
high-quality feed for their animals.
 Scalability: Possibility of extending product lines to other livestock groups, such poultry
or goats.
4.3.2 Weaknesses:
 Initial Market Entry: In a competitive market, gaining the trust of customers may
necessitate a large marketing and educational investment.
 Higher Cost: Compared to generic cattle feed, specialized formulas may have greater
production costs.
 Dependency on Raw Materials: Production may be impacted by supply chain
interruptions for high-quality raw materials.
4.3.3 Opportunities:
 Growing Awareness: Farmers' growing focus on animal production and health creates
opportunities for high-end products.
 Government Support: Subsidies or incentives may be offered through policies that
support agriculture and animal welfare.
 Export Potential: Increasing demand for high-quality animal feed in international markets
may lead to the expansion of income sources.
 Technology Integration: Customized feeding solutions that leverage data analytics and
IoT improve client interaction.
4.3.4 Challenges:
 Intense Competition: Well-known brands with a sizable market share may present
difficulties.
 Price Sensitivity: Farmers may put price ahead of quality, which could affect sales.
 Regulatory Changes: Adherence to animal feed laws may result in limitations.
 Economic Fluctuations: Profitability may be impacted by changes in market demand or
raw material pricing.

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4.4.5 Competitive Advantage:
 Unique Product Differentiation: "Cow Care" fills a void in the conventional cattle feed
industry by concentrating on the nutritional requirements of cows according to their life
stages. Compared to generic feed, this guarantees improved development, milk output,
and general health.
 Scientific Support: Working together with nutritionists and veterinary specialists
guarantees product effectiveness and establishes reliability.
 Education and Assistance for Farmers: Providing seminars, manuals, and online resources
to inform farmers on the health and nutrition of cattle.
 Sustainability Focus: Using locally sourced, eco-friendly ingredients encourages
sustainability and appeals to people that care about the environment.
4.4 PESTLE Analysis
4.4.1 Political Factors
 Government Support and Subsidies: In many nations, governments offer financial
assistance for dairy and agricultural production. Programs like this could help Cow Care,
particularly if the product fits with national objectives to increase dairy yield.
 Regulations on Animal Feed: The manufacture and content of animal feed are subject to
stringent rules. It is crucial to abide by food safety and quality requirements, such as those
set forth by the FDA and the EU.
4.4.2 Economic Factors
 Cost of Raw Materials: Production costs may be affected by fluctuations in the cost of
grains, proteins, and other dietary components.
 Growth of the Dairy Industry: The current state of the dairy industry's economy has an
impact on the need for cow care. The product may be more widely used in areas where
the dairy industry is expanding.
 Global Economic Conditions: Spending on high-end animal feed products may decline as
a result of inflation or economic downturns.
4.4.3 Social Factors
 Awareness of Animal Nutrition: The demand for Cow Care may be fueled by farmers’
understanding of the significance of age-appropriate nutrition for cows.
 Cultural Practices: Traditional feeding methods may predominate in some areas, requiring
education and marketing initiatives to highlight the advantages of specialist cow nutrition.

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 Animal Welfare Concerns: Since Cow Care places a strong emphasis on health and
wellbeing, the growing emphasis on animal welfare in society may present chances for
the company.
4.4.4 Technological Factors
 Innovation in Feed Production: Cow Care products can be made more efficiently and with
higher quality thanks to developments in feed formulation and production technology.
 Precision Farming: Cow Care may be able to provide individualized nutrition regimens
based on real-time data regarding the productivity and health of cows through integration
with IoT and data analytics.
 Manufacturing Automation: Automation can lower production costs and increase product
quality consistency.
4.4.5 Legal Factors
 Animal Feed Safety Standards: It is essential to follow national and international
guidelines for the quality and safety of animal feed.
 Intellectual Property Rights: Keeping a competitive edge requires patent protection for
exclusive technology and formulations.
 Labeling and Advertising rules: To stay out of trouble with the law, one must abide by the
rules pertaining to product claims, labeling, and advertising.
4.4.6 Environmental Factors
 Carbon Footprint: Since customers and authorities are favoring eco-friendly products
more and more, the production process should strive to reduce its negative effects on the
environment.
 Waste Management In order to comply with environmental requirements, it is imperative
that manufacturing waste and packaging materials be disposed of properly.
 Sustainable Sourcing: It's crucial to have raw materials (such soy, corn, and alfalfa) that
are both sustainable and readily available. Depletion of resources and climate change may
affect supply networks
4.5 Future Scenario of Sector:
 Sustainable Feed Innovations: Utilizing insect meal, algae products, and repurposed
agricultural waste to minimize resource consumption and environmental impact.
 Smart Feeding Systems: Sensor-equipped automated feeders that dispense age-
appropriate feeds, track consumption, and modify portions in real-time for efficiency.
 Functional Feeds with Health Boosters: Age-targeted feeds enhanced with probiotics,
prebiotics, and nutraceuticals to improve immunity, digestion, and productivity

35
  Blockchain-Traceable Nutrition: Blockchain ensures transparency in feed sourcing and
production, enabling farmers to confirm quality and sustainability
 Lab-Grown Feed Alternatives: Synthetic feeds rich in nutrients and protein that replace
conventional ingredients.
4.6 Competition in Present Scenario:
The present market for cow nutrition is becoming more competitive because of rising consumer
demand for premium dairy products and greater consciousness of animal health. The market
is dominated by well-known companies with wide distribution networks, including as Uniray
Vet and Vetenex Nutrimax Pro. The market is also very fragmented due to the numerous
local and regional companies that provide reasonably priced cow feed products. Competition
is growing as new startups and Agri-tech businesses enter the market with creative solutions
like AI-based feed suggestions and organic nutritional goods. The requirement for consistent
product quality, farmers' price sensitivity, and their ignorance of improved nutritional
products are the main obstacles.
4.6.1 How to overcome competition in Future Scenario:
 Innovate with Biological Solutions: Invest in the study and development of biological
substitutes for synthetic inputs, making sure they are effective and affordable enough to
become standard options.
 Leverage Technology: Create age-appropriate, precisely based dietary solutions by
combining AI and data analytics. This will allow for the optimization of feed
compositions for various life stages and real-time monitoring of cow health. Establish a
robust distribution network by collaborating with nearby veterinary clinics, dairy
cooperatives, and Agri-input shops to guarantee the product's broad accessibility.
 Strong Distribution Network: Establish a robust distribution network by collaborating
with nearby veterinary clinics, dairy cooperatives, and Agri-input shops to guarantee the
product's broad accessibility. To ensure the products are broadly available, collaborate
with nearby veterinarian clinics, dairy cooperatives, and Agri-input merchants.
 Affordable Pricing: To attract interest in small and medium-sized farmers, provide
reasonable pricing together with flexible payment alternatives like bulk discounts or
subscriptions.
4.7 Worst-case scenario & Contingencies:
Product Cow Care may face price wars, market saturation, and fierce competition from
established firms, potentially lowering profitability and market share. Financial limitations
and lack of confidence in new products may hinder farmers from transitioning to less
expensive
36
feed sources. Regulations like stringent quality control standards and permission delays may
further impede operations. Economic downturns or decreased demand for dairy products may
also impact sales, as farmers may limit their use of high-quality, nutrient-dense feed.
To mitigate these risks, Product Cow Care should implement the following contingency plans:
 Diversification: Expand the product line to provide affordable, entry-level options in
addition to luxury ones in order to cater to consumers on a tight budget.
 Cost optimization: To reduce costs without compromising quality, streamline
manufacturing processes, negotiate lower rates with suppliers, and adopt lean operations.
 Strategic Partnerships: Collaborate with government initiatives, non-governmental
organizations, or dairy cooperatives to build your reputation and reach a wider audience.

37
CHAPTER 5
MARKETING

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5.1 Target Market
"Cow Care" is intended for dairy producers that want stage-specific, scientifically prepared
cow feed to maximize both the health and milk output of their animals. The main target
market consists of medium- to large-scale dairy farmers (10+ cows) who want to optimize
milk output, small-scale dairy farmers (2–10 cows) who want inexpensive, high-nutrition
feed, and dairy cooperatives that guarantee consistent demand for cattle feed. Distributors of
animal feed, veterinary nutritionists, and agro-retailers who assist in bridging the gap between
producers and consumers make up the secondary target market. These organizations are
essential to expanding acceptance rates, guaranteeing high-quality suggestions, and making
the product accessible.
5.2 7P’s of Marketing
5.2.1 Product
A scientifically prepared, stage-specific bovine feed called "Cow Care" is intended to give
cows the best nutrition possible at various periods of their lives. In contrast to generic cattle
feed, "Cow Care" offers four specialized varieties to meet the special nutritional requirements
of dairy cattle: Calf Feed (for strong immunity and rapid growth), Heifer Feed (for
reproductive health), Pregnancy Feed (to support fetal development), and Lactation Feed (to
increase milk production). Highly digestible nutrients are included in the product's
formulation to provide better absorption, greater fertility, and increased milk yield, which
eventually benefits the farmer and the cow.
5.2.2 Price
Pricing is essential to guarantee affordability without sacrificing quality. The pricing model
used by "Cow Care" is value-based, which means that the price considers the long-term
advantages of higher milk output and improved bovine health. Dairy cooperatives and large-
scale farmers are eligible for bulk purchase discounts to make the product affordable for
farmers of all sizes, while subscription plans give a regular feed supply at a reduced price.
Additionally, small-scale farmers may test the product before making bigger purchases
thanks to trial packs. Farmers will perceive "Cow Care" as a cost-effective investment rather
than an expense thanks to the pricing plan.
5.2.3 Place
Reaching farmers effectively requires availability at the appropriate places. "Cow Care"
makes the product easily available by using a multi-channel distribution strategy. Since dairy
farming is most prevalent in rural and semi-urban areas, the feed is accessible through local
agro- retailers and livestock feed stores. Furthermore, farmers may place large purchases and

39
have

40
them delivered right to their door with direct-to-farm delivery services. Accessibility and
distribution efficiency are further improved by strategic partnerships with government
agriculture programs, veterinary clinics, and dairy cooperatives.
5.2.4 Promotion
Promotion is essential for educating farmers about the benefits of stage-specific cattle feed.
"Cow Care" focuses on educational marketing through workshops, on-field demonstrations,
and veterinary expert endorsements to build trust and encourage adoption. Additionally,
social media campaigns, WhatsApp groups, and YouTube videos provide farmers with digital
learning resources on cattle nutrition. Participation in dairy expos, farmer fairs, and
agricultural events increases brand visibility and engagement. Word-of-mouth marketing is
also leveraged, with satisfied farmers acting as brand ambassadors within their communities.
5.2.5 People
Ensuring client pleasure and trust requires a strong workforce. Trained sales representatives,
on-field nutritionists, and veterinary specialists are employed by "Cow Care" to assist farmers
in comprehending the significance of feeding according to stage. To help farmers with
questions regarding feed selection, ordering, and consumption, customer support
representatives are accessible via phone and WhatsApp. When on-site demonstration teams
visit farms, they address farmers' issues and offer tailored advice. Long-term engagement and
consumer loyalty are improved by this farmer-centric approach.
5.2.6 Process
"Cow Care" uses a streamlined, efficient process from production to distribution to guarantee
excellent product quality and prompt delivery. Modern automated machinery is used in the
feed's manufacturing process to ensure uniformity in formulation. Every batch's nutritional
value is guaranteed by stringent quality control procedures, which include laboratory testing.
An efficient inventory management system that tracks stock levels across several distribution
points optimizes the supply chain to cut costs and avoid delays.
5.2.7 Physical Evidence
Very solid physical proof supports "Cow Care's" legitimacy. The food comes in excellent,
moisture-resistant bags that prominently display scientific certificates, feeding
recommendations, and nutritional data. Real-world evidence of the product's efficacy is
provided via demonstration farms and positive farmer reviews. Furthermore, the scientific
formulation of the feed is validated by certifications from veterinary and agricultural
authorities. Case studies showing better cow health and higher milk yield further bolster
brand reputation and confidence.

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5.3 Advertising Copy

Figure 5.1: Advertising Copy

Source- by Author

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5.4 Michael Porters 5 Forces Analysis
5.4.1 Competitive Rivalry (High):
Big companies like Amul cow Feed, Godrej Agrovet, and many local brands provide generic
cow feed at competitive pricing, making the cattle feed industry extremely competitive. A
strong value proposition and awareness campaigns are necessary to get into the market since
dairy farmers like trusted brands.
 Difficulties:
The market is dominated by established competitors that have wider distribution networks
and established brand loyalty. There is intense price competition, with several companies
providing cheap, generic feed.
Because farmers may choose to use other brands due to availability or slight pricing
differences, customer retention is challenging.
 What Makes "Cow Care" Unique:
 Stage-Specific Nutrition: In contrast to rivals, "Cow Care" provides a tailored feeding
solution for several cow life phases, enhancing milk production and general well-being.
 Educational Approach: To raise knowledge of the advantages of scientific feeding, farmer
training programs, workshops, and demo trials are being held.
 Brand Trust & Partnerships: To establish credibility and enduring client connections, strong
collaboration with veterinary specialists and dairy cooperatives is required.
 Competitive Strategy: Use partnerships and farmer education to expand market
penetration while positioning "Cow Care" as a value-driven, science-backed substitute for
generic feed products.
5.4.2 Threat of New Entrants (Moderate):
Although there is room for innovation in the cattle feed sector, significant investment in
research, manufacturing, and distribution is necessary to join the market. Before they can
succeed, new businesses must overcome problems with farmer trust, supply chain obstacles,
and price issues.
 Entry Barriers:
 High Initial Investment: Establishing production facilities, maintaining quality assurance,
and creating a distribution system all need a substantial financial outlay.
 Farmer Trust & Brand Awareness: New entrants find it challenging to acquire momentum
since farmers favor brands with an established track record.
 The Supply Chain & Logistics: It can be difficult to effectively manage raw material
acquisition, manufacturing, and delivery

43
  How "Cow Care" Puts Up Obstacles for Newcomers:
 Robust Brand Positioning & Scientific Validation: Establishing a reputation by expert
recommendations, farmer endorsements, and outcomes supported by research.
 Partnerships for Exclusive Distribution: A reliable client base that is difficult for new
rivals to reach is ensured by partnering with dairy cooperatives and agro-retailers. By
increasing manufacturing, Economies of Scale may cut costs per unit and keep prices
competitive.
 Competitive Strategy: To keep new rivals from entering the market, "Cow Care" has to
build solid farmer connections, increase distribution, and sharpen its unique selling
proposition (USP).
5.4.3 Bargaining Power of Suppliers (Moderate):
Raw ingredients such as maize, wheat, rice bran, soybean meal, and oil cakes are necessary for
the preparation of bovine feed. Geopolitical concerns, market demand, and seasonal
variations all affect the cost and availability of these materials.
 Difficulties for Suppliers:
 Price Volatility: Climate conditions, inflation, and export policies all affect grain prices.
 Quality Assurance: Maintaining feed efficacy requires reliable, high-quality raw
materials. Limited Supplier Choices: Dependency is increased by the limited number of
high-quality suppliers for several essential substances.
 How Supplier Risks Are Managed by "Cow Care":
 Diversifying Suppliers: To reduce reliance on a single provider, source from multiple
areas and vendors.
 Long-Term Contracts: To guard against price swings, sign fixed-price agreements.
Backward integration is the process of controlling raw material supply and lowering reliance
on outside sources by investing in owning or collaborating with farms.
 Competitive Strategy: To guarantee cost effectiveness and product consistency, "Cow
Care" should improve supplier relationships, look into other raw materials, and get firm
contracts.
5.4.4 Bargaining Power of Buyers (High):
Dairy producers base their purchases on cost, availability, and product effectiveness and are
extremely price sensitive. Farmers frequently search for affordable options instead of high-
end items since cattle feed has a direct influence on profitability.
 Difficulties with Purchasers:
 Price Sensitivity: Cost savings are more important to farmers than superior quality.
Access to Alternatives: Farmers may more easily swap between the multiple cow feed
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brands available.

45
  Lack of Knowledge About Stage-Specific Nutrition: It is more difficult to defend a higher
price since many farmers do not know about scientific feeding methods.
 How Farmers Trust "Cow Care":
 Reasonably priced subscription plans and discounts: Competitive pricing is achieved by
providing bundle discounts, loyalty programs, and trial packs. In order to demonstrate
that stage-specific feeding results in increased milk output and decreased health costs, on-
field trials and case studies will be organized. Building confidence by collaborating with
veterinarians who can endorse the product to farmers is one way to implement the
veterinary recommendations.
 Competitive Strategy: To keep consumers and discourage switching, "Cow Care" should
concentrate on value-based pricing, farmer education, and loyalty-building strategies.
5.4.5 Threat of Substitutes (Moderate to High):
 In place of stage-specific cow feed, farmers have several options, including:
 Traditional Feeding Methods: Homemade feed mixes (straw, grain waste, and molasses)
are used by many farms; they are less expensive but lack balanced nutrition.
 Generic Cattle Feed Brands: Farmers find it more difficult to recognize the need for
specific goods when competitors provide cheap, one-size-fits-all feed.
 Nutritional Supplements: Rather than moving to premium feed, some farmers would
rather add vitamin and mineral supplements.
 The Reasons "Cow Care" Is a Better Option:
Unlike generic feeds, scientifically formulated nutrition guarantees better milk output, higher
fertility, and greater immunity.
 Long-Term Cost Savings: By lowering veterinary costs and raising milk production,
farmers can save money over time.
 Farmer Awareness Campaigns: Teaching farmers about the immediate production
benefits of stage-specific feeding and its importance
 Competitive Strategy: To persuade farmers to abandon alternatives, "Cow Care" must
employ educational marketing, affordability incentives, and real-world farmer
testimonials.
5.5 Product Line
5.5.1 "Cow Care Grow+" for the Calf Stage (0–7 months)
A calf's first few months of life are crucial for boosting immunity, guaranteeing quick
development, and fortifying bones. The goal of "Cow Care Grow+" is to offer high-energy
feed that promotes illness resistance and early development. Rice, wheat, maize, and protein
sources like groundnut oil cake make up the diet, which gives the calves a strong foundation
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for good

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health. Calves who receive the right nutrients at this stage grow up to be robust, healthy cows
who can produce as much milk as possible in the future.
5.5.2 "Cow Care Vital+" for the Heifer Stage (7–15 Months)
The emphasis switches to maintaining the calf's general health and reproductive maturity as it
develops into a heifer. To promote bone strength, weight increase, and reproductive health,
"Cow Care Vital+" is made with barley, rice bran, protein concentrates, and vital minerals. A
healthy diet at this point lowers the chance of delayed sexual development, making the heifer
more prepared for a healthy first pregnancy and maximum fertility. This period is critical to
the long-term profitability of dairy farms because a well-nourished heifer is more likely to
produce healthier calves and better milk output in the future.
5.5.3 "Cow Care Nurture+" at the Pregnancy Stage (After 15 Months)
Cows need specific diet throughout pregnancy in order to promote fetal growth and get ready
for calving. A high-protein combination of grains, omega-3 fatty acids, calcium, and
phosphorus included in "Cow Care Nurture+" ensures healthy calf growth within the womb
and guards against metabolic diseases in the mother. This diet lowers the risk of postpartum
nutritional depletion, weak calves, and difficult deliveries. "Cow Care Nurture+" helps the
cow and the newborn calf stay healthy by fortifying the cow's body at this time, which paves
the way for smooth breastfeeding and recuperation.
5.5.4 "Cow Care Milk-Max" at Postpartum Lactation Stage:
The body needs a lot of energy to maintain milk production and recuperate from calving, thus
the nutritional needs of the cow rise dramatically after giving birth. The ingredients in "Cow
Care Milk-Max"—high-energy maize, flaxseed meal, amino acids, and probiotics—improve
milk fat and protein content, boost milk supply by 10% to 15%, and promote a speedy
recovery after giving birth. Rich in vital minerals including calcium and phosphorus, this feed
helps nursing cows avoid metabolic diseases and milk fever. At this point, proper feeding
guarantees steady milk production, higher-quality dairy products, and the farmer's long-term
productivity. Cow Care guarantees that dairy farmers optimize productivity while preserving
the long-term health of their cattle by providing customized feed formulas based on the stages
of cattle life.
5.6 Unique Selling Proposition
Cow Care’s scientifically prepared, stage-specific cow feed, intended to maximize milk
output, reproductive health, and overall cattle well-being, is its unique selling proposition
(USP). "Cow Care" offers specific nutrition at every stage—Calf, Heifer, Pregnancy, and
Lactation— ensuring that cows receive the proper nutrients for growth, fertility, and milk
production, in contrast to generic cattle feeds that take a one-size-fits-all approach. This
48
focused strategy

49
promotes better reproductive performance, enhances immunity and digestion, and increases
milk output by 10–15%, resulting in healthier cattle and higher earnings for farmers. "Cow
Care" was created in partnership with agricultural researchers and veterinary specialists, and
it ensures a balanced diet, improved nutrient absorption, and high digestibility. Furthermore,
it is composed of excellent, regionally sourced components, guaranteeing sustainability and
safety and lowering dependency on artificial additives
5.7 Positioning
"Cow Care" is marketed as the first scientifically developed, stage-specific bovine feed in
India, with the goal of improving milk production, reproductive health, and general cattle
welfare. "Cow Care" offers specialized nutrition for every life stage—calf, heifer, pregnancy,
and lactation—ensuring ideal development, fertility, and production in contrast to generic
cow feeds that take a one-size-fits-all approach. It was created in partnership with agricultural
specialists and veterinary nutritionists, and it ensures greater milk quality, increased
digestibility, and enhanced immunity. "Cow Care" gives dairy producers a high return on
investment by striking a balance between high-quality formulations and cost, enabling them
to boost milk output while enhancing the long-term health of their cattle. "Cow Care" is
dedicated to teaching and assisting farmers in addition to offering cow feed. It raises
awareness of the advantages through workshops, veterinarian consultations, and on-field
demonstration
5.8 BCG MATRIX
5.8.1 Stars
Product: Cow Care MilkMax+ (Lactation Stage Feed) is the product.
Reason: Because of the growing need for premium lactation feed to increase milk
production, this product is probably going to have a significant development potential. This
product has the potential to capture a sizable portion of the market as dairy producers learn
more about the advantages of stage-specific nutrition.
Strategy: To sustain growth and market share, make marketing and distribution investments.
5.8.2 Cash Cow
Product: Cow Care Grow+ (Calf stage feed)
Reason: In areas where dairy farming is well-established, this product may already hold a
sizable market share. There is a continuous market for calf feed, and the commodity
consistently brings in money.
Plan: Continue producing the product and utilize the earnings to fund the development of
further high-growth items, such as MilkMax+.

50
5.8.3 Question Mark
Product: Cow Care Repro+ (Heifer Stage Feed)
Reason: Although the market for heifer feed has room to develop, the product may not have a
large market share at the moment because of poor awareness or competition from generic
feeds.
Strategy: To grow market share, spend money on farmer education and marketing. It might
become a star if it succeeds.
5.8.4 Dog
Product: Cow Care Materna+ (Pregnancy Stage Feed)
Reason: Due to a lack of knowledge about the advantages of specialist pregnancy feed, this
product may have poor growth and a small market share. During this phase, farmers could
continue to use conventional feeding techniques.
Strategy: Consider repositioning or discontinuing the product. As an alternative, spend money
on farmer education to raise demand.

51
 CHAPTER 6

HUMAN RESOURCE PLAN

52
6.1 Organization Structure

Figure 6.1- Organization Structure

Source- By Author
6.2 Training procedure and Implementation
 Understanding the Nutritional Needs of Cattle:
Employees should be educated about the dietary requirements of cows at various life phases,
including calves, lactating cows, and aged cattle. This comprises protein, minerals, vitamins,
and energy sources to promote good health, milk production, and growth.
 Feed Formulation and Quality Control:
Employees must be taught in cattle feed formulation to ensure that nutrients are balanced
across different cow groups. This involves learning about ingredient selection, quality checks,
and how to avoid pollutants like aflatoxins, which can be harmful to cows. Quality assurance
methods must be properly followed.
 Breeding and Genetics Training:
A well-trained team should understand the fundamentals of cow breeding, such as artificial
insemination, genetic selection for increased milk supply, disease resistance, and breed-specific
nutrition adaptability. Employees should also be comfortable managing pregnant cows and
newborn calves.
 Health and Disease Management:
Training should include the detection, prevention, and treatment of common cattle diseases
such as mastitis, foot-and-mouth disease, and nutritional deficiencies. Employees should be
able to recognize early warning signals and give first-aid remedies before seeking
veterinarian attention.
 Food Strategies and Ration Planning:
Teaching employees about proper feeding schedules, portion control, and
understanding seasonal feed availability is critical for increasing efficiency, decreasing waste,
and ensuring cows receive adequate nutrition throughout the year.
53
 Farm Hygiene and Biosecurity Measures:
It is vital to maintain cleanliness and hygiene during feed preparation and cow housing. To
avoid the spread of illnesses, employees should be taught how to clean equipment, dispose of
waste properly, and prevent contamination of feed and water supplies.
 Record-keeping and Data Analysis:
Training should emphasize the significance of monitoring cow health, feeding plans,
breeding cycles, and milk production. Employees should be able to use digital tools or
manual records to track and improve cattle performance based on past data.
 Sustainable and ethical practices:
Employees should be trained in sustainable farming strategies such as environmentally
friendly feed production, trash recycling, and responsible water use. Cattle treatment should
be ethical, with emphasis on humane handling and stress-free settings.
 Customer Education and Support:
Employees should be taught to educate customers on the benefits of specialized cow feed, as
well as how to troubleshoot frequent feeding problems. A customer support system should be
established to assist farmers in increasing the productivity and health of their herds.
6.3 No of Employees
Table 6.1: Number of Employees
Department Members/Partners Employees

CEO/Founder 1 -
COO/Co-Founder 1 -
Production Manger - 1
HR Manager - 1
Sales and Marketing Director - 1

Finance and Accounts Manager - 1

Logistics and Operation Manger - 1

Source – By Author

54
6.4 Management Structure
6.4.1 The CEO/Founder:
Role: The CEO/Founder is the company's visionary leader, responsible for establishing the
general direction, mission, and long-term goals. They ensure that the organization adheres to
its basic values of cow care and sustainability.
Responsibilities:
 Define the company's vision, mission, and strategic goals.
 Oversee the creation of novel cow care goods and services.
 Develop relationships with stakeholders, investors, and partners.

6.4.2 The COO/Co-Founder:

The COO/Co-Founder collaborates with the CEO to drive the company's vision and oversee
daily operations. They guarantee that all departments work together to meet the company's
objectives.
Responsibilities:
 Oversee the operational efficiency of all departments.
 Implement techniques to increase productivity and lower costs.
 Maintain compliance with animal welfare legislation and standards.

6.4.3 The Marketing Director:

The Marketing Director develops and implements marketing strategies to promote the
company's cow care products and services. They focus on increasing brand visibility and
consumer interaction.
Responsibilities:
 Create marketing initiatives emphasizing the company's dedication to cow care and
sustainability.
 Manage digital, social media, and traditional advertising campaigns.
 Conduct market research to determine client demands and trends.
6.4.4 Sales and Marketing Manager:
The Sales Manager's responsibilities include managing the sales staff and developing
relationships with clients, distributors, and retailers in order to drive revenue.
Responsibilities:
 Develop and implement sales strategy to achieve revenue targets.
 Train and motivate the sales team to reach their objectives.
 Develop and maintain relationships with farmers, dairy cooperatives, and other clients.

55
 6.4.5 HR Manager:
Role: The HR Manager is in charge of employee recruiting, training, and well-being, ensuring that
the company's personnel is skilled and motivated.
Responsibilities:
 Recruit and onboard people who share the company's values.
 Develop training programs to improve employee skills and knowledge.
 Manage employee relationships, performance reviews, and conflict resolution.
6.4.6 Finance and Accounts Manager
The Finance Manager is responsible for the company's financial health, including effective
budgeting, accounting, and financial planning.
Responsibilities:
 Maintain the company's budget, cash flow, and financial reporting.
 Conduct financial analyses to aid decision-making.
 Maintain compliance with tax and financial laws.
6.4.7 Logistics and Operations Manager
The Operations Manager is responsible for ensuring that the company's day-to-day operations run well,
particularly those including cow care and product/service delivery.
Responsibilities:
 Manage the manufacturing and marketing of cow care products.
 Maintain inventory and supply chain operations.
 Maintain the facilities and equipment.

6.5 Qualifications of Post

Table 6.2 Qualification of Post
Post Qualification
1. Advanced degree in business, agriculture, or a similar profession.
2. Extensive knowledge of dairy and animal husbandry.
3. Proven entrepreneurial success.
CEO/Founder 4. Extensive experience in entrepreneurship, leadership, and
strategic management.
1. Degree in marketing, business, or a related profession.
2. Experience with digital and conventional marketing.
Marketing Director 3. Strong analytical and creative abilities.
4. Proven track record of brand building.

56
 5. With Minimum 2 years of experience in the same field.
1. Degree in business, sales, or a similar sector.
2. Effective negotiation and communication abilities.
Sales Manager 3. Demonstrated ability to achieve sales targets.
4. Mastering CRM tools and sales methods.
5. With Minimum 3years of experience

1. Degree in human resources, business.

2. Experience in recruitment and employee relations.
HR Manager 3. Understanding of labour laws and compliance.
4. Excellent interpersonal and organizational abilities.
5. experience in recruitment, employee relations, and HR policies.

1. Degree in finance, accounting.

2. CPA/CMA qualification is recommended.
Finance and 3. Experience in budgeting and financial reporting.
Accounts 4. Strong analytical and decision-making abilities.
Manager 5. With Minimum 2years of experience

1. Bachelor's degree in Operations Management, Logistics, or

Logistics related field
and 2. Strong organizational and leadership abilities.
Operations 3. Understanding of quality management and process optimization.
Manager 4. Experience managing teams and resources.
5. Experience in supply chain management, logistics coordination,
and process optimization
Source – By Author

57
6.6 Salary Breakup
Table 6.3 Salary Breakup
Position Role based Salary Monthly Salary
(per year, INR) (INR)

CEO/Founder 4,00,000 31,166.67

COO/Co-Founder 3,50,000 27,708.33
Marketing Director 3,50,000 27,708.33
Sales Manager 3,50,000 27,708.33

HR Manager 3,50,000 27,708.33

Customer Experience Manager 3,50,000 27,708.33

Finance Manager 3,50,000 27,708.33

Operations Manager 3,50,000 29,166.67

Technology/IT Manager 3,50,000 27,708.33

Quality Control Specialists 3,50,000 27,708.33

Source – By Author
6.7 Fringe Benefits
 Health Insurance Coverage: Complete health insurance, including dependents, with a
yearly coverage value of ₹25,000 per employee.
 Free nutritious Items for Farmers: Employees receive ₹1,000,000 worth of cow nutritious
samples each month to give to farmers or utilize on their own farms.
 Equity grants or stock options: Provide employees ownership stakes in the business,
enabling them to benefit from its expansion and success. Stock options worth 5% of a
person's yearly pay.
 Employee Recognition Program: Quarterly awards like "Employee of the Month" with a
payment of ₹5,000 and acknowledgment in company-wide.
 Retirement Plans: Funds contributed to employee retirement accounts, including pension
plans or 401(k) plans. 5% of the employer's yearly wage contribution.

58
 Educational Reimbursement: Employees who are pursuing relevant degrees or
certifications in animal science or agriculture-related disciplines may get up to ₹15,000
annually.
 Provident Fund (PF) Contribution: The company contributes 12% to the employee's PF
account, guaranteeing their financial stability in the future.
 Annual Performance Bonus: Based on both individual and corporate success, this bonus
can amount to up to 15% of the yearly pay.
 Employee Assistance Programs (EAPs): Services that offer mental health support,
counseling, and help with personal or professional problems. ₹5,000 annually for each
worker ,only for long-term workers
 Benefits of Remote Work: Assistance with setting up a home office, flexible work
schedules, and equipment stipends are all examples of support for remote work
arrangements.
6.8 Working Hours and Conditions
6.8.1 Working Hours and Conditions:
 Working Hours: Workers will work Monday - Friday, five days a week.
8 hour a day, plus a 1-hour lunch break. Production line workers have two shift
options: 8:00 AM to 4:00 PM (day shift) and 4:00 PM to 12:00 AM (night shift).
 Working condition: Strict hygienic and safety regulations shall be followed in
every production area to protect worker health and product integrity. To keep
things hygienic, the workspace and its equipment will be cleaned on a regular
basis.
6.8.2 Leave Policy for Employees:
 Annual Leave :Employees are entitled to a specific amount of paid annual leave
days annually, which are calculated by their duration of service.
 Sick Leave: Employees who are unable to work because of a sickness or accident
are entitled to paid sick leave, if they have all the required documentation.
 Bereavement Leave: Employees are entitled to have three days of paid leave in
the case that a member of their immediate family (spouse, child, or parent,) passes
away.
6.8.3 Holidays in the government:
 Public holidays are granted to employees in accordance with regional and
national calendars. These holidays could be festivals, national holidays, or other
occasions declared by the government.

59
6.8.4 Maternity Benefits:
 Maternity Leave: Female employees are entitled to 12 weeks of paid maternity
leave, with eligibility requiring a minimum of 12 months of employment.
 Paid Leave: Maternity leave may include a combination of paid and unpaid leave,
with the option to extend unpaid leave if needed.
 Job Security: Workers on maternity leave are guaranteed employment security
and can resume their current position or similar role when they return.
6.8.5 Recruitment Sources:
 Internal Recruitment Sources
Promotion: It involve appointing current staff to senior roles, such as regional
manager, to motivate and reduce onboarding time.
Transfers involve relocating staff members between departments, such as
transferring production employees to quality control groups, utilizing their
knowledge of the business's procedures.
 External Recruitment Sources
Attend industry-specific job fairs and career events to meet potential
employees in person, such as attending agricultural expos, which can
networking with more eligible people.
Campus Recruitment: Collaborate with veterinary and agricultural schools to
hire recent graduates. For example, working with five to ten colleges a
year can provide you access to more than five hundred young, motivated
applicants.
6.8.6 Retirement Benefit
 Retirement Age: Generally, company policy or legislative rules determine the
employee's retirement age.
 Retirement Benefits: Workers may qualify for retirement benefits such
contributions to provident funds, retirement savings programs, or pension plans.
6.8.7 Loan Policy
 Employee Loans: To help with urgent or personal expenses, the company give
employee loan programs.
 Eligibility: The loan amounts, terms of repayment, and eligibility requirements are
described in then loan-grant policy of the company.
 Interest Rates: Competitive interest rates may be available on employee loans, and
repayment options may be deducted from paychecks.

60
The company offers a Loan Grant Policy as an employee benefit to support personal and
professional advancement, aiming to maintain financial stability and foster a positive work
environment while preserving the company's financial stability.
6.9 Other HR Considerations
 Diversity & Inclusion: Promoting an inclusive workplace in which individuals from all
backgrounds, including veterinarians, nutritionists, and agricultural specialists, work
together to create innovative cattle feed solutions.
 Employee engagement initiatives: Organizing field trips, farm training sessions, and
team- building activities to keep personnel engaged in Cow Care's aim of enhancing cattle
nutrition and production.
 Succession Planning: To guarantee business continuity, Cow Care must identify and train
future leaders, particularly in critical positions like supply chain specialists, farm
managers, and feed formulation experts.
 Performance appraisals: Continual evaluations of staff members' contributions to Cow
Care's operations, encompassing customer service, research on bovine nutrition, and
production efficiency. This guarantees motivation and ongoing improvement.
 Talent Acquisition and Retention: In order to maintain top talent in the livestock feed
sector, it is important to attract and keep qualified individuals in the fields of animal
nutrition, agricultural technology, and business development while offering possibilities
for career advancement.
 Training and Development: Carrying out specialized training on sustainable feed
production, farm management techniques, and cattle nutrition research to guarantee that
staff members remain current with industry developments.
 Workplace Safety and Compliance: To safeguard workers and uphold high standards of
quality, feed production facilities must implement stringent safety procedures and make
sure that food safety and livestock nutrition laws are followed.
 Management of Compensation and perks: Providing competitive pay, performance-based
rewards, and housing and transportation perks to workers in rural areas where breeding
and feed production take place.
 Employee Feedback and Grievance Handling: To improve Cow Care's working
environment, an open communication system should be established so staff members can
offer input on feed quality enhancements, workplace issues, or operational efficiency.

61
 CHAPTER 7

PRODUCTION AND OPERATIONS

62
7.1 Floor Plan

Figure 7.1 Floor Plan

Source- by Author
An industrial facility built for effective organization and workflow is depicted in the floor
plan. The administrative area, which is located at the front and includes a 144-square-foot
office, a 175-square-foot conference room, and a 450-square-foot logistics section,
guarantees efficient operations and coordination. Personnel and goods may flow freely along
the center 867 sq. ft. corridor. To ensure a logical flow of materials, the manufacturing
process begins with raw material storage and handling (745 sq. ft.) and continues into the
grinding and mixing department (450 sq. ft.). Following that is the 600 square foot pelletizing
and chilling facility, where processed materials are stabilized and shaped prior to final
handling.
The 530 square foot packing and storage facility on the right guarantees that the final goods
are organized before being distributed. The 357 sq. ft. quality control lab is positioned next to
it to confirm product standards prior to shipping. By reducing handling time and expediting
the process from raw material intake to final product storage, the overall facility layout is
intended to increase efficiency. The facility facilitates an efficient and effective working
environment with a well-organized layout of workspaces and a spacious hallway for easy
mobility.
7.2 Machinery Used
Equipment for Producing Cow Care Feed
Each manufacturing line needs the following equipment to guarantee the manufacture of
cattle feed that is scalable, high-quality, and efficient:
63
 Machinery for Processing Raw Materials
 Maize, wheat, and other raw materials are ground into tiny particles using a hammer mill
or grinder.
 A bucket elevator moves raw ingredients to mixers or storage bins.
 Raw materials are moved between processing steps using screw conveyors.
 Equipment for Mixing and Formulating Feed
 A batch mixer or ribbon blender makes sure that all the feed components are mixed evenly.
 The Liquid Dosing System adds vitamins, minerals, and essential oils in precise amounts.
 Equipment for Pelletizing and Drying
 For improved digestion and storage, the mixed meal is turned into compact pellets using a
pellet mill.
 A cooling and drying machine makes sure that feed pellets are chilled and that moisture
levels are managed to extend their shelf life.
 Equipment for Packaging and Storage
 A machine that weighs and bags automatically makes sure that feed is packed precisely
into 25- or 50-kg bags.
 Feed bags are sealed by a sealing and stitching machine to preserve freshness and avoid
contamination.
 Keeping Before being distributed, raw materials and completed feed are kept in silos and
bins.
 Equipment for Quality Control and Testing
 To keep feed from spoiling, a moisture analyzer measures its moisture content.
A nutrient analyzer makes sure that each batch has the right amount of protein, fiber, and
minerals,
 Microbial Testing Kit: Verifies safety compliance and contamination.
7.3 No. of Production line
The number of production lines for the manufacturing of Cow Care feed is determined by the
types of feed formulations and expected production capacity. The facility can feature four
dedicated production lines, each specialized for a certain type of feed, based on the stage-
specific cattle feed strategy (Calf Feed, Heifer Feed, Pregnancy Feed, and Lactation Feed).
Suggested Cow Care Production Lines:
 Calf Feed Production Line: This line is dedicated to creating nutrient-rich, high-energy
feed for quick growth and immune system development.

64
  Heifer Feed Production Line: This line creates feed that is supplemented with vitamins
and minerals to promote reproductive health and prepare for breeding.
 The Pregnancy Feed Production Line is a supplement-based, protein-rich feed that
promotes fetal development and lessens calving stress.
 The Lactation Feed Product Line is a high-energy, mineral-fortified feed that is intended
to increase post-calving milk output.
7.4 Quality Policy
Cow Care has earned ISO 22000:2018 – Food Safety Management System (FSMS) Certification
to guarantee the highest levels of safety, nutrition, and consistency in our bovine feed
production. Our feed products are guaranteed to adhere to stringent food safety and quality
assurance standards at every stage of production, from acquiring raw materials to packing and
distribution, thanks to this globally recognized accreditation.
The Implications of ISO 22000:2018 Certification for Cow Care
The International Organization for Standardization (ISO) created the worldwide standard ISO
22000:2018 especially for food safety management. It combines a strong risk management
strategy with the Hazard Analysis and Critical Control Points (HACCP) principles to reduce
contamination, guarantee ingredient purity, and uphold constant product quality.
As a result of this accreditation, Cow Care follows:
 Strict Raw Material Testing: Prior to use, each batch of oil cakes, rice, wheat, and maize
is examined for microbiological safety, moisture content, and purity.
 Controlled Manufacturing Process: Feed is made in a clean, automated environment to
guarantee a constant level of quality throughout batches.
 Quality Control & Laboratory Testing: To reduce the possibility of contamination, each
batch is subjected to microbiological testing and nutritional validation.
 Safety of Packaging and Storage: To maintain freshness, feed is kept in temperature-
controlled warehouses in bags that are impervious to tampering and moisture.
 Legal Compliance & Traceability: All manufacturing steps are recorded and traceable,
guaranteeing adherence to GMP (Good Manufacturing Practices), the Food Safety &
Standards Authority of India (FSSAI), and the Bureau of Indian Standards (BIS). Cow
Care ensures that our bovine feed satisfies national and international quality standards by
achieving ISO 22000:2018 accreditation, giving farmers peace of mind that their animals
are fed the safest and healthiest feed possible.

65
 7.5 Maintenance Policy
To avoid production delays and preserve excellent product quality, Cow Care's Maintenance
Policy seeks to guarantee that all manufacturing equipment, storage facilities, and logistical
operations operate effectively. We can lower operating expenses, guarantee reliable supply
chain management, and avoid equipment failures by putting in place a structured
maintenance plan. All manufacturing steps are covered by this strategy, including preventive,
corrective, and emergency maintenance.
7.5.1 Preventive Maintenance
A planned, proactive approach to maintaining equipment, storage spaces, and transportation
vehicles is known as preventive maintenance. In order to lower the possibility of equipment
failure and production interruptions, it is carried out at regular intervals.
To avoid contamination and overheating, all manufacturing equipment, including mixers,
grinders, pelletizers, and packing machines, get weekly lubrication and cleaning. To make
sure all systems run as efficiently as possible, monthly checks are carried out to look for wear
and tear in the electrical connections, belts, and motors. To ensure feed formulation
accuracy, nutrient analyzers, weighing devices, and moisture meters are calibrated every three
months. In order to prevent raw materials and final feed from spoiling, storage and
warehousing facilities are monitored daily for temperature and humidity management. To
protect feed quality, pest control techniques, including fumigation and rodent-proofing, are
implemented every two months. Quarterly inspections of ventilation systems are
performed to prevent moisture accumulation and guarantee sanitary storage conditions.
To avoid mechanical breakdowns, all delivery trucks receive regular service. To guarantee
prompt and safe product distribution, vehicle tire pressure, engine oil levels, and cooling
systems are examined before each journey.
7.5.2 Corrective Maintenance
When a problem occurs, corrective maintenance is carried out right away, guaranteeing a prompt
resolution to avoid prolonged downtime. Production flow is temporarily maintained by using
backup units or manual alternatives in the event of a machine breakdown. To get machines
operating again, defective parts are swapped out for premium ones.
When raw material contamination or spoilage occurs, the impacted stock is thrown out right
away, and other suppliers are contacted for quick replacements. To avoid feed contamination
or loss of product integrity, defective materials are replaced if packing flaws are found.

66
7.5.3 Emergency Maintenance
Critical circumstances, such unexpected power outages, equipment problems, or abrupt
regulatory inspections, are when emergency maintenance is carried out. Cow Care has a
dedicated response team that is trained to troubleshoot and fix difficulties within 24 hours in
order to manage such situations.
At the production location, backup power generators are set up to avoid downtime brought
on by power outages. Regular emergency drills and training sessions for staff members aid in
prompt reaction to unanticipated failures or contamination risks. Spare parts inventory is
maintained to enable speedy replacements without production delays.
Compliance & Documentation: To ensure traceability and regulatory compliance, all
maintenance operations are recorded in logbooks. To maintain ISO 22000, BIS, and FSSAI
standards, internal auditors and external quality control agencies evaluate routine inspections
and maintenance programs.
7.6 Location Analysis
Karnataka's strong dairy farming sector, plentiful supply of raw materials, well-developed
infrastructure, and government backing for agribusinesses make it the perfect place to
produce Cow Care feed. There is a considerable need for cow feed because of the state's vast
dairy farming population, particularly in Bangalore Rural, Tumkur, Mandya, and Hassan.
Being a significant producer of maize, wheat, and oil cakes, Karnataka lowers the cost of
transporting raw materials and guarantees a consistent supply for manufacturing. The state
provides excellent road, rail, and logistics connections, with simple distribution throughout
South India made possible by NH-75 and NH-48. Additionally, competent personnel, up-to-
date equipment, and technological assistance are all made available by Bangalore's industrial
ecosystem. It is also an affordable and business-friendly place because of government
incentives under Karnataka's Agricultural Policy, Dairy Development Schemes, and MSME
Subsidies. By locating in Bangalore Rural or Tumkur, businesses may maximize their
operational efficiency and market reach by being close to both raw resources and final
customers.

67
 CHAPTER 8

FINANCIAL PLAN

68
8.1 Investment Breakup
Table 8.1- Investment breakup
Particulars Amount Description
(₹)
Land and Building 65,00,000 Land And Operational Infrastructure Costs

Plant & Machinery 65,00,000 Equipment And Machinery Needed For

Manufacturing.
Furniture & Fixtures 5,00,000 Storage Cupboards, And Furniture For Offices
And
Factories.
Raw Material 10,00,000 Initial Supply of Raw Materials Needed For
Inventory Manufacturing.
Cash-in-Hand 2,00,000 Money on board to meet daily ongoing operating
costs.
Stores Items 1,00,000 small items required for production like packaging
materials & tools and spares
Cash-in-Bank 2,00,000 kept in a bank account for financial transactions.
Warehouse Rent / 3,00,000 Storage Facility for Raw materials and finished
Security goods.
Wages, Salaries & 25,25,000 Pay distribution for management, employees, and
Training staff, including training initiatives.
Technical Expenses 3,50,000 Costs for software, automation, and technical
assistance.
Legal & Registration 50,000 Legal fees, business licenses, and registration
costs.
Charges
Marketing & 2,00,000 increased funding for packaging
design, digital
Branding
marketing, advertising, and
promotional events.
Computers and 3,00,000 Purchased 11 Acer Aspire Lite AMD Light Laptop
laptops (16 GB RAM/512 GB)
(27,110 market price)
Miscellaneous 50,000 Unforeseen And unexpected Business Expenses.
Expenses
Tota 1,50,00,000 Total

69
 l
Invest
ment
Source- By Author

70
8.2 Approximate Investment
Table 8.2-Apprximate investment
Source of Funds Amount Percentage
(₹) (%)
Partner – 1 25,00,000 16.7
Partner – 2 25,00,000 16.7
Partner – 3 25,00,000 16.7
Bank Overdraft (overdraft facility at from SBI 10% interest ) 25,00,000 16.7
State Bank of India (term loan under Credit Guarantee Fund 50,00,000 33.3
Scheme for Micro and Small Enterprises (CGS-I) at 10%
interest per year)
Total Investment 1,50,00,000 100
Source- By Author

Figure 8.1-sources of funds

Source- By Author
The company's financial structure is carefully planned to balance stock and debt, ensuring
both stability and development potential. The three partners have each invested ₹25,00,000,
or 50% of the entire investment, demonstrating their strong commitment. The company has
received external capital through a ₹25,00,000 bank overdraft at a 10% interest rate to
provide short- term cash support. The State Bank of India provides a ₹50,00,000 term loan
under the Credit Guarantee Fund Scheme (CGS-I) at a 10% interest rate, accounting for
33.3% of total investment. This well-structured finance mix provides financial flexibility,
allowing us to

71
leverage outside capital without becoming unduly reliant on debt. The mix of owner
contributions and external funding helps to reduce financial risks while also allowing the firm
to spend in critical areas such as infrastructure, operations, and expansion, setting it for long-
term success.
8.3 COST SHEET (PER PRODUCT):
Table 8.3-Cost Sheet (per product)
Particulars Per Per Per Per Per Per Per Per
Tonne 50 Tonne 50 Tonne 50 Tonne 50
(₹) kg (₹) kg (₹) kg (₹) kg
Bag Bag Bag Bag
(₹) (₹) (₹) (₹)
Direct Expenses:
Raw Material 16100 805 17500 875 18900 945 19600 980
Machinery & 460 23 500 25 540 27 560 28
Maintenance
Labour Cost ( 575 29 625 31 675 34 700 35
Wages)
-Faactory 1380 69 1500 75 1620 81 1680 84
overheads
Total Direct 18515 926 20125 1006 21735 1087 22540 1127
Cost
Indirect Expenses:
Administration 230 12 250 13 270 14 280 14
Expenses
HR Expenses 1035 52 1125 56 1215 61 1260 63
Logisitics 460 23 500 25 540 27 560 28
Expenses
Sales & 460 23 500 25 540 27 560 28
Marketing
Expenses
Total Indirect 2185 109 2375 119 2565 128 2660 133
Cost
Total Cost 20700 1035 22500 1125 24300 1215 25200 1260
Profit Margin 10% 10% 10% 10% 10% 10% 10% 10%

72
 Profit 2070 104 2250 113 2430 122 2520 126
Selling Price 23000 1150 25,000.00 1250 27,000.00 1350 28,000.00 1400

Source – By Author
8.4 Cost Benefit
Analysis
Table 8.4-Cost Benefit
Analysis
Particulars 25-26 26-27 27-28 28-29 29-30

Installed 7,200 7,200 7,200 7,200 7,200

Capacity (in
tonnes)
Capacity 10% 20% 45% 60% 80%
Utilized (%)
Quantity of 720 1,440 3,240 4,320 5,760
Output (in
tonnes)
Selling 25,750 27,038 28,389 29,809 31,299
Price/Tonne
(₹)
Sale 1,85,40,000 3,89,34,000 9,19,81,575 12,87,74,205 18,02,83,887
Realization
(A)
Direct
Expenses
Raw Material 1,42,75,800 2,99,79,180 6,99,05,997 9,52,92,912 13,16,07,238
Factory 5,56,200 11,68,020 22,99,539 28,97,420 36,05,678
Overheads
Machinery 92,700 1,94,670 4,59,908 6,43,871 9,01,419
Repair &
Maintenance
Production 4,63,500 9,53,883 20,69,585 27,68,645 36,05,678
Wage Exp
Total Direct 1,53,88,200 3,22,95,753 7,47,35,030 10,16,02,848 13,97,20,012
Expenses (B)
Indirect
Expenses
Administrative 1,00,000 1,50,000 2,25,000 3,37,500 5,06,250
expenses
Finance 1,50,000 2,25,000 3,37,500 5,06,250 7,59,375
Expenses
HR expenses 25,25,000 27,77,500 33,33,000 36,66,300 40,32,930
Logistics 3,70,800 7,78,680 18,39,632 25,75,484 36,05,678
Expenses
Sales & 10,00,000 13,00,000 19,50,000 29,25,000 43,87,500
marketing
expenses
Total Indirect 41,45,800 52,31,180 76,85,132 1,00,10,534 1,32,91,733

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 Expenses (B)
Total Cost (B) 1,95,34,000 3,75,26,933 8,24,20,161 11,16,13,382 15,30,11,745
Gross -9,94,000 14,07,067 95,61,414 1,71,60,823 2,72,72,142
Profit/Loss
(A–B) (₹)
Less: 0 0 6,50,000 6,50,000 6,50,000
Depreciation
Less: Interest 7,50,000 6,00,000 4,50,000 3,00,000 1,50,000
Net Profit -17,44,000 8,07,067 84,61,414 1,62,10,823 2,64,72,142
Before Tax
(D)
Less: Income 0 1,21,060 12,69,212 24,31,623 39,70,821
Tax (15%)
Net Profit -17,44,000 6,86,007 71,92,202 1,37,79,200 2,25,01,321
After Tax (F)
Repayment 15,00,000 15,00,000 15,00,000 15,00,000 15,00,000
(Loan
Principal) (G)
Retained -32,44,000 -40,57,993 16,34,209 1,39,13,408 3,49,14,729
Surplus (F–
G)
Net Profit -9.41% 1.76% 7.82% 10.70% 12.48%
Ratio (%)
Source- By Author
Interpretation:
8.4.1 The Capacity Utilization and Quantity of Output:
It reflects the company's production efficiency and growth trajectory over five years in 25-26,
the firm only barely functioned at 10% capacity, producing 720 tonnes. This low utilization
indicates an initial period of operations, most likely focused on reviewing manufacturing
processes and market demand. The following year, 26-27, capacity was doubled to 20%,
yielding 1,440 tonnes, showing an early-stage ramp-up and increasing demand. By 27-28,
utilization had increased to 45%, producing 3,240 tonnes, indicating the company's transition
to stable operations. This increase indicates that market demand has increased, promoting
larger output. In 28-29, capacity reached 60% with an output of 4,320 tonnes, indicating
optimized operations and perhaps greater customer reach. Finally, by 29-30, the company
was operating at 80% capacity and generating 5,760 tonnes. This level represents a mature
production phase with high market acceptance.
8.4.2 Sale realisation and selling price per tonne
The company's Sale Realisation indicates the revenue generated by sales, whereas the Selling
Price per Tonne shows the average price at which each tonne was sold.In 25-26, the selling
price per tonne was ₹25,750, producing ₹1.85 crore in revenue. In 26-27, production
doubled, resulting in a price increase of ₹27,038 per tonne and a selling realisation of ₹3.89

74
Cr. This was due to higher volume and inflation adjustments. By 27-28, the selling price
jumped to ₹28,389

75
per tonne, with a sale realisation of ₹9.19 Cr, owing to increased production and demand. In
28-29, the price rose to ₹29,809 per tonne, yielding ₹12.88 Cr. In 29-30, it reached ₹31,299
per tonne, yielding ₹18.03 Cr. A constant 5% increase in selling price per tonne is seen. This
is to adjust to the inflation and growing demand of the product.
Indirect Expenses.

8.4.3 Raw Materials:

Raw materials account for the majority of direct expenses, indicating a strong link between
production volume and material requirements. In 25-26, raw material expenses were ₹1.42
Cr, accounting for 77% of total direct expenditures. This large share was the result of poor
purchasing, restricted supplier alternatives, and the lack of bulk buying benefits. As output
doubled in 26-27, raw material expenses increased to ₹3 Cr, retaining a 77% share. While
production got higher, supplier relationships were still growing, and price discussions were
not entirely optimised. By 27-28, with 45% capacity utilisation, raw material prices soared to
₹6.99 Cr. However, the percentage fell somewhat to 76% because to improved supplier
connections and bulk purchase arrangements. In 28-29, raw material prices increased to
₹9.53 Cr, but the share decreased to 74% due to improved logistics, supplier diversification,
and Rapid procurement techniques. By 29-30, at 80% capacity utilisation, raw material
costs reached
₹13.16 Cr, with a further decrease to 73% due to long-term contracts, volume discounts, and
good inventory management.
Optimisation Insights: Strategic supplier partnerships, bulk discounts, and improved logistics
have all contributed to lowering raw material costs and increasing total profitability over
time.
8.4.4 Factory Overheads:
Includes fixed expenditures such as utilities and rent for production facilities. In 25-26,
overheads was ₹5.56 L, accounting for 3.6% of direct costs, due to a tiny production base. In
26-27, output climbed to ₹11.68 L (3.6% share), owing to greater energy use. As production
scaled, overheads reached ₹22.99 L (3.1% share) by 27-28. However, energy audits and
process enhancements maintained efficiency. In 28-29, overheads reached ₹28.97 L, but the
share decreased to 2.8% due to automation, efficient power utilization, and optimized
procedures. By 29-30, despite overheads reaching ₹36.05 L, their proportion declined to
2.6%, indicating improved energy consumption and lean manufacturing processes.
Optimization Insight: Energy conservation measures, factory automation, and capacity
scaling successfully lowered per-ton overhead costs while improving operational efficiency.

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8.4.5 Machinery Repairs & Maintenance:
Maintenance expenditures remained generally stable year after year because to frequent
preventive maintenance, routine health examinations, and timely part replacements and no
major increase due to newer machines . In 25-26, repair expenditures totalled ₹92,700, or
0.6% of direct costs. In 26-27, production climbed to ₹1.94 L (0.6% share) because to
increasing machine usage. However, basic maintenance programs were efficient in
controlling this. By 27-28, costs reached ₹4.59 L (0.6% share), while predictive maintenance
reduced unexpected breakdowns. In 28-29, maintenance expenses were ₹6.44 L, sustaining a
0.6% share due to effective monitoring and planned servicing. In 29-30, repair costs were at
₹9.01 L, but decreased to 0.5% due to improved IoT-based maintenance tracking and
optimised operations. Optimisation Insight: Consistent preventative practices kept costs
consistent over time, with the final-year reduction indicating sophisticated monitoring,
effective scheduling, and optimal equipment utilisation.
8.4.6 Production Wage Expenses:
Wages show staffing costs that are directly related to manufacturing processes. In 25-26,
wages totalled ₹4.63 L, accounting for 3% of direct costs. While the semi-automated system
had already been implemented, a lack of operational experience necessitated a strong reliance
on manual intervention, resulting in greater labour costs compared to output. Wages
climbed to
₹9.54 L (3% share) as production doubled between 26-27. Basic workforce training began,
allowing for more effective use of automation, yet efficiency improvements remained
modest. By 27-28, with capacity utilisation at 45%, pay increased to ₹20.69 L (2.8% share).
Hands-on expertise and streamlined workflows enabled more seamless incorporation of
automation, minimising manual redundancies. In 28-29, pay expenses climbed to ₹27.69 L,
but the share declined to 2.7% as the team learnt system features, introduced predictive
maintenance, and optimised production cycles, resulting in reduced labour hours. By 29-30,
with full operating efficiency of the semi-automated system and skilled people, wages grew
to ₹36.06 L. However, the share reduced further to 2.6%, demonstrating optimal utilisation of
both technology and human resources.
Optimisation Insight: Although the semi-automated system was in place from the outset,
growing mastery through continual training, process refinement, and data-driven
modifications allowed for a progressive reduction in labour costs while increasing
productivity.
8.4.7 Total Direct Costs:
Total direct expenses include raw materials, production overheads, maintenance, and wages.
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In 25-26, direct costs reached ₹1.53 Cr, mostly due to high raw material costs and inefficient
sourcing. In 26-27, output doubled and increased to ₹3.22 Cr. Bulk purchase reduced raw

78
material costs. By 27-28, costs increased to ₹7.47 Cr due to scaling up. However, supplier
optimisation kept raw material prices under control. In 28-29, total direct costs rose to ₹10.16
Cr. However, method procedures, process automation, and predictive maintenance improved
efficiency. By 29-30, direct costs had reached ₹13.97 Cr, with peak efficiency achieved
through supplier diversification, energy optimisation, and worker training.
Optimisation Insight: Gradual improvements in procurement methods, process efficiency,
and talent development resulted in long-term cost control, ensuring that expenses matched
production growth.
8.4.8 Expenses:
Administrative expenses include the cost of office operations, utilities, and managerial
overhead. In 25-26, these expenses totalled ₹1 L, representing 0.51% of the entire cost. This
larger percentage reflected unused administrative resources and fixed overheads distributed
across lower output levels. Administrative expenses grew to ₹1.5 L in 26-27, but decreased
to 0.40% as fixed costs were spread across increasing output. By 27-28, with 45% capacity
utilisation, expenses increased to ₹2.25 L, and the percentage declined to 0.27%. In 28-29,
costs totalled ₹3.37 L but accounted for only 0.30% of the total cost, indicating effective use
of administrative resources. By 29-30, despite increased prices to ₹5.06 L, the share reduced
to 0.33%, highlighting the impact of process automation, digitisation, and better cost
allocation. Optimisation Insights: The initial greater expenses were due to fixed overheads
not being used efficiently. As production increased, these expenditures were spread out
among greater outputs, lowering the overall proportion.
8.4.9 Finance Expenses:
This includes banking charges, audit fees, professional services, and administrative
expenditures. In 25-26, financing expenses were ₹1.5 L, accounting for 0.77% of total costs.
This larger percentage reflected the initial deployment of banking facilities, higher
transaction fees, and first-time audit charges. As activities expanded in 26-27, costs increased
to ₹2.25 L, but the share reduced to 0.60% due to improved banking conditions and financial
systems. In 27-28, expenses increased to ₹3.37 L, but the proportion decreased to 0.41% due
to volume transactions that reduced per-unit banking fees and standard audit procedures.
Finance spending reached ₹5.06 L by 28-29, but only accounted for 0.45% of total costs,
because to improved efficiency through digital transactions and automation. In 29-30, costs
reached ₹7.59 L, but the share decreased to 0.50% due to long-term agreements with service
providers, reduced professional fees, and optimised banking structures.

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Optimisation Insights: Initially, the larger share was attributed to higher establishment costs
and less favourable service conditions. Over time, operational scalability, digitalisation, and
improved vendor agreements reduced the relative weight of finance-related costs.
8.4.10 HR Expenses:
These expenses cover staff recruiting, pay, training, and benefits. In 25-26, HR expenses were
₹25.25 L, or for 13% of the overall cost. This larger percentage was related to the inception
phase, when significant resources were invested in talent acquisition, recruitment campaigns,
and initial training programs. In 26-27, costs increased to ₹27.78 L at a percentage of 7.40%
due to increased recruiting and training as production scaled up.
From 27-28, while HR expenditures climbed by about 10% every year to provide incentives
and increments, the percentage of overall costs constantly fell. In 27-28, HR expenses were
₹33.33 L, accounting for 4.05%, indicating better worker efficiency. By 28-29, costs
increased to ₹36.66 L, accounting for only 3.28% of the overall cost. In 29-30, HR
expenses reached
₹40.33 L, representing only 2.64%, as operations stabilised, hiring slowed, and retention
increased.
Optimisation insights: Although yearly increases were paid, the overall HR cost percentage
declined due to economies of scale, improved personnel management, and lower recruitment
demands as the company matured.
8.4.11 Logistics expenses:
This cost cover shipping, warehousing, and distribution. In 25-26, these expenses totalled
₹3.71 L, or 1.90% of the overall cost. This increased share was the result of unoptimized
logistics workings and higher per-unit shipping costs at low production volumes. Logistics
expenses climbed to ₹7.78 L during 26-27 manufacturing, although the share reduced to
2.07%. By 27- 28, with 45% capacity utilisation, expenses climbed to ₹18.40 L, but the
percentage reduced to 2.23%, indicating better route planning and economies of scale. In
28-29, costs increased to
₹25.75 L, but accounted for only 2.31% of the entire cost. By 29-30, despite expenses reaching
₹36.06 L, the percentage decreased to 2.36% due to route optimisation, bulk shipment, and
enhanced inventory management.
Optimisation Insights: Initially, greater expenses were attributed to low output and inefficient
logistics. As output rose, bulk transportation, route optimisation, and enhanced supplier
networks cut costs.
8.4.12 Sales and Marketing Expenses:
These expenses cover advertising, promotions, and customer outreach. In 25-26, these
80
charges totalled ₹10 L, making up 5.12% of the overall cost. This larger percentage reflects
the early necessity to create brand exposure and market presence. In 26-27, sales climbed
and costs

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increased to ₹13 L. However, the share declined to 3.46% due to focused promotions. In 27-
28, expenses reached ₹19.50 L, and the percentage reduced to 2.37% due to digital marketing
techniques and organic brand growth. In 28-29, marketing expenses reached ₹29.25 L,
accounting for only 2.62% of the overall cost. By 29-30, with expenses reaching ₹43.88 L,
the share decreased to 2.87%, indicating improved marketing channels and customer
retention. Optimisation Insights: The early increased costs were related to brand
establishment initiatives. Over time, better targeting, digital marketing, and word-of-mouth
promotion lessened the expense burden.
8.4.13 Total indirect expenses:
This include every kind of indirect costs combined. In 25-26, indirect expenses totalled
₹41.46 L, or 21.22% of the overall cost. This increased share was caused by fixed overheads,
underutilised resources, and start-up inefficiencies. As capacity utilisation increased in 26-27,
expenditures climbed to ₹52.31 L, but the share reduced to 13.94%, indicating improved
resource allocation. In 27-28, expenses climbed to ₹76.85 L, while the proportion decreased
to 9.33% due to operational efficiencies and economies of scale. In 28-29, indirect expenses
totalled ₹1 Cr but accounted for only 8.97% of the total cost. By 29-30, despite expenses
exceeding ₹1.33 Cr, the share decreased to 8.69%, demonstrating effective cost control,
automation, and economies of scale.
Optimisation Insights: Initially, increased expenses were attributed to fixed overheads and
inefficiencies. Over time, operational efficiency, process advancements, and increased
production volume reduced the relative expense share.
8.4.14 Total Cost (B)
Includes both direct and indirect expenses, indicating overall business spending. In 25-26,
startup inefficiencies, costly recruitment, and operational setup resulted in total costs of ₹1.95
crore. Production expenses increased to ₹3.75 Cr in 26-27 and ₹8.24 Cr in 27-28 due to
greater raw material consumption, salaries, and logistics. By 28-29, costs reached ₹11.16 Cr,
with improved supplier contracts and operational efficiency stabilising the surge. In 29-30,
expenditures reached ₹15.30 Cr, but declined as a percentage of revenue, demonstrating
economies of scale and effective cost control.
Optimisation Insights: The original cost increase was attributable to startup inefficiencies,
recruitment, and procurement concerns. Over time, stronger supplier connections, logistics,
and staff stability helped to keep costs under control despite greater production volumes.
8.4.15 Gross Profit/Loss (A-B)
It is the revenue after removing direct and indirect costs. In 25-26, the business experienced a
₹9.94 L loss because to limited productivity and excessive administrative costs. In 26-27, gross
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profit increased to ₹14.07 L, indicating improved manufacturing efficiency. By 27-28, with
45% capacity utilisation, gross profit increased to ₹95.61 L, as fixed expenses were
distributed over larger production. In 28-29, gross profit virtually doubled to ₹1.71 Cr, owing
to bulk buying, stable HR expenses, and optimised logistics. By 29-30, it had achieved ₹2.72
Cr, indicating operational maturity and cost control.
Optimisation Insights: The initial losses were caused by low output and large fixed costs.
Gross profit steadily climbed as capacity utilisation and cost structures stabilized.
8.4.16 Depreciation
This measures asset wear and tear. It was 0 for 25-26 and 26-27,as the machines are new and
it didnt cause much of depreciation in inital years but contributed ₹6.5 L (10%) yearly from
27-28 as output rose and asset usage increased.
8.4.17 Interest:
Interest expenses represent borrowing costs. In 25-26, interest was ₹7.5 L, reflecting the
initial loan burden. As repayments began, interest dropped to ₹6 L in 26-27 and ₹4.5 L in 27-
28. It further decreased to ₹3 L in 28-29 and ₹1.5 L in 29-30, as principal repayments
reduced outstanding debt. Optimisation Insights: The declining trend in interest costs reflects
successful loan repayment and reduced financial strain.
8.4.18 Net Profit Before Tax (D):
This metric measures profitability after deducting operational and financial costs. In 25-26, it
had a loss of ₹17.44 L because to significant beginning expenses. By 26-27, it went positive
at
₹8.07 L, indicating greater efficiency. In 27-28, it increased to ₹84.61 L with improved
output and cost control. In 28-29, net profit reached ₹1.62 Cr and increased to ₹2.64 Cr in
29-30, indicating effective operational control and profitability.
Optimisation Insights: Net profit growth was driven by increased output, cost reduction, and
lower interest costs.
8.4.19 Income Tax (15%)
The 30% income tax rate for the cattle feed manufacturing industry is generally applied based
on the general corporate tax structure in India.The standard corporate tax rate is 30% if their
turnover exceeds ₹400 crore in the previous financial year.but as our company is a new one
and registered as a MSME and did not make turnover that exceeds ₹400 we are eligible for
tax deduction criteria established under Section 115BAB, which offers a reduced rate of 15%.
The income tax calculation, now at 15% due to the company's MSME status, dramatically
cuts the tax burden from the previous 30% rate. In 25-26, there was no tax liability due to a
net loss of
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₹17.44L. In 26-27, the company produced a net profit before tax (NPBT) of ₹8.07 L, with
tax amounted to ₹1.21 L, indicating rising profitability. By 27-28, NPBT reached ₹84.61 L,
and

84
tax climbed to ₹12.69 L, reflecting higher earnings. In 28-29, the tax increased to ₹24.31 L,
while in 29-30, it reached ₹39.70 L due to peak profitability.
Optimisation Insights: The reduced tax rate under MSME advantages boosts profitability
while also demonstrating good business expansion and cost management.
8.4.20 Net Profit After Tax (F).
Net profit after tax (NPAT) reflects the company's genuine profitability after taxation. In 25-
26, the company experienced a loss of ₹17.44 L because to low capacity utilisation and
excessive fixed expenditures. In 26-27, higher output and cost optimisation led to a positive
net profit of ₹6.86 L. By 27-28, NPAT reached ₹71.92 L, indicating increased operational
efficiency and economies of scale. Profits increased from ₹1.37 Cr in 28-29 to ₹2.25 Cr in
29- 30, driven by 80% capacity utilisation and spread overheads across higher output.
Optimisation Insights: The constant improvement in NPAT reflects enhanced production
efficiency, solid cost control, and optimal resource utilisation, all of which contribute to long-
term financial stability.
8.4.21 Repayment (Loan Principal) (G):
The company's loan repayment and interest expenses had a substantial impact on its financial
performance and balance sheet over the last five years. With an initial loan of ₹75 lakhs, the
company payed ₹15 lakhs annually, bringing the outstanding principle to zero by 29-30.
Interest expenses reduced from ₹7.5 lakhs in 25-26 to ₹1.5 lakhs in the last year, as the loan
balance decreased. This repayment plan reduced the balance sheet's liabilities while
simultaneously diminishing cash reserves annually. However, as the debt burden reduced, net
profits climbed, improving retained earnings from a deficit of ₹32.44 lakhs in 25-26 to a
surplus of ₹2.71 crores in 29-30. By the end of the loan tenure, the company's debt
management. The company maintained a consistent annual loan repayment of ₹15 L over
five years, showing effective debt management. This consistent payback plan meant that the
company reduced its debt burden while maintaining operational liquidity. As profitability
improved, these repayments became more reasonable, ensuring long-term financial health
and freeing up cash flow for reinvestment.
Optimisation Insights: The consistent repayment method demonstrates the company's
dedication to financial discipline, lowering leverage while assuring long-term growth.
8.4.22 Retained Surplus (F–G)
Retained surplus is the profit remaining after loan repayments, indicating the company's
ability to reinvest in growth. During the early years, the company experienced deficits of
₹32.44 L in 25-26 and ₹40.57 L in 26-27 due to low capacity utilisation and high overheads.
After stabilising operations, the surplus expanded to ₹16.34 L in 27-28 due to enhanced
85
output and

86
cost efficiency. The company's surplus increased significantly from ₹1.39 Cr in 28-29 to
₹3.49 Cr in 29-30, indicating its excellent financial position and potential for future growth.
Optimisation Insights: The increase in retained surplus demonstrates superior cost
management, higher profitability, and lower financial burden from debt commitments.
8.4.23 Net profit ratio (%):
The net profit ratio compares profitability to sales. In 25-26, the ratio was -9.41%, indicating
startup losses from low capacity utilisation and high fixed expenditures. As production
increased and overheads were shared over larger output, the ratio improved to 1.76% in 26-
27. By 27-28, it had risen to 7.82%, because to improved production and cost control. The
ratio reached 10.70% in 28-29, suggesting greater operational management, and then
increased to 12.48% in 29-30, indicating peak operational efficiency and sustained
profitability. Optimisation Insights: The rising net profit ratio reflects the company's effective
scaling, cost optimisation, and good financial health, which ensures long-term viability and
growth.
8.4.24 Overall Assessment:
The cost-benefit analysis shows a clear shift from initial losses to long-term profitability,
which is fuelled by greater production, improved cost management, and financial discipline.
Profitability was further boosted by the company's MSME tax incentives. With increased
retained earnings and an improving net profit ratio, the company is well-positioned for future
8.5 Balance Sheet (0th and 1st year):
Table 8.5-Balance Sheet (0th year)

Liabilities Amount (₹) Total Assets Amount (₹) Total

Capital 75,00,000.00 Fixed/Non- 1,35,00,000.00
Account Current
Assets
Partner 1's 25,00,000.00 Land and 65,00,000
Capital Building
Partner 2's 25,00,000.00 Plant & 65,00,000
Capital Machinery
Partner 3's 25,00,000.00 Furniture 5,00,000
Capital

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 Non- 75,00,000.00 Current 15,00,000.00
Current Assets
Liabilities
Bank OD 25,00,000.00 Raw 10,00,000.00
A/c Material
(overdraft Inventory
facility at
from SBI
10%
interest)
Term Loan 50,00,000.00 Cash-in- 2,00,000.00
(from SBI Hand
at 10%
interest per
year)
Stores Item 1,00,000.00
Cash-in- 2,00,000.00
Bank
Total 1,50,00,000.00 Total 1,50,00,000.00
Liabilities Assets
Source – By Author
Interpretation:
The 0th-year balance sheet shows the company's financial situation at the beginning or before
the starting of operations. It largely shows the initial capital structure, asset investments, and
early-stage responsibilities. Each area of the balance sheet is explained in depth below:
The capital structure of the business is well-defined, with three partners contributing equal
amounts of ₹25,00,000 each, totalling ₹75,00,000. This assures equal ownership, shared
financial responsibilities, and a solid equity base. There are no retained earnings or generated
profits on the 0th year balance sheet. The reliance on partner money shows a strong financial
foundation for funding initial business operations and asset purchases.
Fixed/non-current assets total ₹1,35,00,000, with significant investments in land and
buildings (₹65,00,000), plant and machinery (₹65,00,000), and furnishings ( ₹5,00,000). This
large allocation to fixed assets is consistent with the needs of a manufacturing company,
which requires infrastructure and equipment before production begins. Investing heavily in
fixed assets from the beginning promotes long-term stability and operational effectiveness.
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The non-current liabilities are ₹75,00,000, including a bank overdraft ( ₹25,000) and a term
loan (₹50,000). This external finance is critical since partner capital alone is insufficient to
cover significant capital expenses. The smart use of debt financing bridges the financial gap

89
while allowing the company to retain liquidity. A structured liability framework ensures that
the corporation can buy necessary assets without depleting its cash reserves.
Current assets are relatively modest at ₹15,00,000, representing an allocation of ₹10,00,000
for raw material inventory, ₹2,00,000 in cash-in-hand, ₹2,00,000 in cash-in-bank, and
₹1,00,000 for stores. The availability of raw material inventory signifies that the organisation
is ready to begin manufacturing.
However, minimal liquidity in cash accounts suggests that the majority of financial resources
have been dedicated to infrastructure rather than excess working capital. It is fine because it’s
the initial phase of business and once it kick starts it operations it will start to circulate
working capital. This is typical for manufacturing enterprises that require significant initial
investments. The company's financial position is well-balanced, with total liabilities matching
total assets of
₹1,50,00,000. The emphasis on capital investment and modest debt usage reflects a deliberate
approach to business growth. With large fixed assets and working capital in place, the
company is well-positioned for smooth operations and long-term viability. The financial
decisions made at this stage provide a firm platform for future growth, production, and
income creation.
Table 8.6-Balance Sheet (1st year)

Liabilities Amount (₹) Total Assets Amount (₹) Total

Capital 75,00,000.00 Fixed/Non- 1,35,00,000.00
Account Current
Assets
Partner 1's 25,00,000.00 Land and 65,00,000
Capital Building
Partner 2's 25,00,000.00 Plant & 65,00,000
Capital Machinery
Partner 3's 25,00,000.00 Furniture 5,00,000
Capital
Non- 60,00,000.00 Current 45,00,000.00
Current Assets
Liabilities

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 Bank OD 25,00,000.00 Closing 10,00,000.00
A/c Stock (F/G)
Repayment 5,00,000.00 Raw 10,00,000.00
Material
Inventory
Net Bank 20,00,000.00 Sundry 12,00,000.00
OD Debtors
Term Loan 50,00,000.00 Cash-in- 6,00,000.00
(interest Hand
on bank
loan
10%
Repayment 10,00,000.00 Stores Item 2,00,000.00

Net Term 40,00,000.00 Cash-in- 5,00,000.00

Loan Bank
Current 45,00,000.00
Liabilities
Trade 20,00,000.00
Payables
Customer 20,00,000.00
Advances
Short-Term 5,00,000.00
Provisions
Total 1,80,00,000.00 Total 1,80,00,000.00
Liabilities Assets
Source- By Author
Interpretation:
The capital structure remains unchanged at ₹75,00,000, with equal contributions from each
of the partners. However, unlike the zero-year balance sheet, the business now has additional
liabilities, indicating that the business is started with its operations.
The current assets increased from ₹15,00,000 to ₹45,00,000, indicating higher working
capital and operational expansion. The company's ending stock of ₹10,00,000 indicates
increased output and inventory. The raw material inventory continues at ₹10,00,000,

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indicating stable purchase levels. Sundry debtors (₹12,00,000) have been added, suggesting
credit-based sales and business growth. The increase in cash-in-hand (from ₹2,00,000 to
₹6,00,000) and cash-in- bank (from ₹2,00,000 to ₹5,00,000) indicates enhanced liquidity,
allowing the organisation to better control expenses.

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A important shift is the introduction of current liabilities of ₹45,00,000. This includes
trade payables (₹20,00,000), customer advances (₹20,00,000), and short-term provisions
(₹5,000.00). The presence of trade payables indicates that the company has started
purchasing supplies on credit, which improves cash flow management. Customer advances
indicate that customers have begun placing orders and making upfront payments, indicating
increased demand. Short-term provisions are expected to cover operational expenses and
potential liabilities, demonstrating more structured financial planning. This shift marks the
change from an investment-heavy period to an active operational stage with monetary
responsibilities.
Overall, the financial transition from the 0th to the 1st year symbolises the company's
transition from commencement to active business operations. The reduction in long-term
debt, increase in current assets, and introduction of current liabilities all reflect a dynamic
financial progression. The company has effectively utilised its infrastructure, earned revenue,
and established a working capital cycle. Loan repayment implies a steady cash flow, whereas
increases in client advances and trade payables imply increased business activity. This shift
confirms the company's growth trajectory, from setup to revenue generating and ongoing
operations.
8.6 Ratio Analysis:
Table 8.7- Ratio analysis

Ratio Formula Calculation Value Ideal /

Industry
Standard
Current Ratio Current Assets / ₹45,00,000 / 1.0 1.5 - 2.0
Current Liabilities ₹45,00,000
Liquid Ratio (Current Assets - (₹45,00,000 - 0.51 1.0
(Quick Ratio) Inventory) / Current ₹22,00,000) /
Liabilities ₹45,00,000
Inventory COGS / Average ₹1,54,80,900 / 15.48 8 - 12 times
Turnover Ratio Inventory ₹10,00,000 times
Debtors Net Credit Sales / ₹1,85,40,000 / 15.45 10 - 12 times
Turnover Ratio Average Sundry ₹12,00,000 times (30-36 days)
Debtors

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 Creditors Total Credit Purchases ₹1,54,80,900 / 7.74 6 - 8 times (45-
Turnover Ratio / Average ₹20,00,000 times 60 days)
Trade Payables
Debt-Equity Total Equity / Total ₹75,00,000 / 1.0 1.2 - 1.5
Ratio Debt ₹75,00,000
Asset Net Sales / Total ₹1,85,40,000 / 1.03 1.0 - 1.5
Turnover Ratio Assets ₹1,80,00,000
Source- By Author
8.6.1 Current Ratio:
Formula:
Current Ratio = Current Assets / Current Liabilities
Calculation:
Current Assets = ₹45,00,000
Current Liabilities = ₹45,00,000
Current Ratio = ₹45,00,000 / ₹45,00,000 = 1.0
Interpretation:
A current ratio of 1.0 means that for every ₹1 in current liabilities, the company has ₹1 in
current assets. This means that the corporation is only able to cover its short-term liabilities
without any additional buffer.
The optimal ratio ranges between 1.5 and 2, providing a cushion against short-term financial
challenges. A ratio of 1.0 indicates a potential liquidity concern. As a startup, the company
has made significant investments in fixed assets such as land, machinery, and furniture,
lowering available cash assets. Furthermore, a large amount of its current assets are locked up
in inventory and receivables, making them less available to fulfil liabilities.
8.6.2 Liquid Ratio (Quick Ratio)
Formula:
Liquid Ratio = (Current Assets - Inventory) / Current Liabilities
Calculation:
Current Assets = ₹45,00,000
Inventory (Raw Material + Finished Goods + Stores Items) = ₹10,00,000 + ₹10,00,000 +
₹2,00,000 = ₹22,00,000
Current Liabilities = ₹45,00,000
Liquid Ratio = (₹45,00,000 - ₹22,00,000) / ₹45,00,000 = ₹23,00,000 / ₹45,00,000 = 0.51

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Interpretation:
An 0.51:1 ratio indicates that the company has just ₹0.51 in liquid assets (cash and
receivables) for every ₹1 in liabilities. The company should ideally have enough liquid assets
to cover all short-term liabilities, as the optimum quick ratio is 1:1.
Because a large percentage of current assets are locked up in inventory, which is not instantly
liquid, the quick ratio is low. As a startup, the business reduces its available financial reserves
by storing finished goods and raw materials to maintain production continuity.
8.6.3 Inventory Turnover Ratio:
Formula:
Inventory Turnover Ratio = Cost of Goods Sold (COGS) / Average Inventory
Calculation:
COGS (Total Direct Cost) = ₹1,54,80,900
Average Inventory = (Opening Inventory + Closing Inventory) / 2
Assuming opening inventory is the same as closing inventory, Average Inventory =
(₹10,00,000 + ₹10,00,000) / 2 = ₹10,00,000
Inventory Turnover Ratio = ₹1,54,80,900 / ₹10,00,000 = 15.48 times
Interpretation:
A turnover ratio of 15.48 indicates that the corporation sells and replaces inventory 15 times
each year, or approximately every 24 days. While a high turnover rate is generally positive, it
may suggest that the company is running with extremely low stock levels, which could lead
to supply shortages if demand surges unexpectedly.
The optimal ratio for the cow feed business is 8-12 times, indicating that this company is
functioning above industry standards. While this lowers storage costs, it also indicates a
higher risk of supply chain interruption.
8.6.4 Debtors Turnover Ratio
Formula:
Debtors Turnover Ratio = Net Credit Sales / Average Sundry Debtors
Calculation:
Net Credit Sales = ₹1,85,40,000
Sundry Debtors = ₹12,00,000
Assuming no opening balance, Average Sundry Debtors = ₹12,00,000
Debtors Turnover Ratio = ₹1,85,40,000 / ₹12,00,000 = 15.45 times
Interpretation:
The debtor turnover ratio of 15.45 times shows that the company collects payments from its
clients 15.45 times every year, or nearly every 24 days (365 ÷ 15.45 = 24 days). This value
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indicates that the company's receivables collection process is efficient, which means that
it can recover its outstanding credit sales in a relatively short amount of time.
Comparison to Industry Standard In the cattle feed industry, the debtor turnover ratio is
normally between 10 and 12 times per year (or 30 to 36 days for receivable collection). The
company's collection cycle is 24 days, which means that:
Customers are paying fast, The company relies more on cash and short-term credit sales,
lowering the risk of bad debts.It employs stricter credit management techniques to ensure that
consumers do not fail on payments.
8.6.5 Creditors Turnover Ratio
Formula:
Creditors Turnover Ratio = Total Credit Purchases / Average Trade Payables
Calculation:
Total Credit Purchases (Direct Costs) = ₹1,54,80,900
Trade Payables = ₹20,00,000
Assuming no opening balance, Average Trade Payables = ₹20,00,000
Creditors Turnover Ratio = ₹1,54,80,900 / ₹20,00,000 = 7.74 times
Interpretation:
The company pays suppliers 7-8 times a year, or roughly every 47 days ,which falls within
the industry norm of 6-8 payments per year. This suggests it is striking a good balance
between paying suppliers on time and keeping cash flow stable.
8.6.6 Debt-Equity Ratio
Formula:
Debt-Equity Ratio= Total Equity (Capital Account)/Total Debt (Non-Current Liabilities)
Calculation:
Total Debt (Non-Current Liabilities) = ₹75,00,000
Total Equity (Capital Account) = ₹75,00,000
=₹ 75,00,000/₹75,00,000
=1.0
Interpretation:
A debt-equity ratio of 1.0 indicates that the company's financial structure is well-balanced,
with equal proportions of debt and equity. This ratio implies that the company is neither over-
leveraged nor under-leveraged, with an ideal balance of borrowed funds and owner capital.
Such a financial condition indicates that the organisation is obtaining external finance while
avoiding becoming unduly reliant on debt. A debt-equity ratio in industries such as
manufacturing and cattle feed production is normally between 1.2 and 1.5, implying that this
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company has a lower ratio, indicating a more conservative and risk-averse approach to debt
financing. While this balance provides financial stability and avoids debt-related concerns.
8.6.7 Asset Turnover Ratio
Formula:
Asset Turnover Ratio = Net Sales / Total Assets
Calculation:
Net Sales = ₹1,85,40,000
Total Assets =
₹1,80,00,000
Asset Turnover Ratio = ₹1,85,40,000 / ₹1,80,00,000 = 1.03
Interpretation:
The asset turnover ratio of 1.03 suggests that for every ₹1 invested in total assets, the
company is generating ₹1.03 in revenue. This indicates a moderate level of efficiency in
utilizing assets to drive sales. In capital-intensive industries like manufacturing and cattle
feed production, an ideal asset turnover ratio typically ranges between 1 and 1.5. A ratio of
1.03 falls on the lower end, implying that while the company is utilizing its assets to generate
revenue, there is room for improvement.
8.7 Break Even Analysis:
Table 8.8-Break even analysis
Year Total Revenue (₹) Total Cost (₹) Profit/Loss (₹) Cumulative Profit/Loss (₹)
25-26 55,00,000 72,44,000 -17,44,000 -17,44,000
26-27 80,00,000 73,14,000 6,86,000 -10,58,000
27-28 1,62,00,000 90,08,000 71,92,000 61,34,000
28-29 2,15,00,000 77,30,000 1,37,70,000 1,99,04,000
29-30 2,80,00,000 94,86,000 2,25,14,000 4,24,18,000
Source- By Author
When total income and total expense are equal, there is no profit or loss, which is known as
the break-even point. It stands for the amount of sales needed to pay for all of the fixed and
variable costs.
8.7.1 Year 1 (25-26):
The company produces 720 tons in the first year while operating at 10% capacity utilization.
The overall cost surpasses sales income because to high startup costs, which include wages,
factory overheads, raw materials, and indirect expenses, resulting in a net loss of ₹17.44 L.
This suggests that the business is not operating at the break-even threshold and that its sales
volume is below what is needed to pay its expenses.
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8.7.2 Year 2 (26–27):
Production increases to 1,440 tons as capacity utilization increases to 20%. Due to greater
production and operating costs, the overall cost stays higher even though sales revenue
increases. With a net profit after taxes of ₹6.86 L, the business has a smaller loss in Year 2.
The retained excess, however, stays negative following loan repayments, indicating that the
break- even point has not yet been attained.
8.7.3 Year 3 (27–28):
The company's sales revenue significantly increases in the third year, when production
reaches 3,240 tons and capacity utilization is at 45%. A net profit after taxes of ₹71.92 L is
the result of effective production and cost control. The break-even threshold is reached when
entire revenue equals total expenses, leaving a tiny retained surplus of ₹16.34 L upon loan
repayment. This suggests that operational stability has been attained by the business.
8.7.4 Post-Break-Even Point (28–29 and 29–30):
The company moves into a profitable stage following the achievement of the break-even
point. 60% capacity utilization on 28–29 results in a net profit after tax of ₹1.37 Cr and a
retained surplus of ₹1.39 Cr. At 80% utilization on 29-30, the net profit rises to ₹2.25 Cr,
and the residual surplus amounts to ₹3.49 Cr. This indicates robust financial development,
allowing for reinvestment in marketing campaigns, technology advancements, and corporate
expansion.
8.8 Payback Period:
Table 8.9- Payback Period Breakdown
Year Opening Loan (₹) Interest (₹) Principal Repayment (₹) Closing Loan (₹)
25-26 75,00,000 7,50,000 15,00,000 60,00,000
26-27 60,00,000 6,00,000 15,00,000 45,00,000
27-28 45,00,000 4,50,000 15,00,000 30,00,000
28-29 30,00,000 3,00,000 15,00,000 15,00,000
29-30 15,00,000 1,50,000 15,00,000 0
Source- By Author
The time needed for a business to recover its original loan amount through planned
repayments is known as the payback period. With an annual principal repayment of
₹15,00,000 and overall replayment of 75,00,000 and declining interest payments as the
outstanding loan balance decreases, the loan payback in this instance is stretched out over
five years. By the end of the fifth year (Year 29–30), the company will have paid off the
entire loan, leaving the closing loan sum at ₹0.
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 CHAPTER 9

EXECUTION PLAN

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9.1 Implementation Strategy
9.1.1 Phase 1: Pre-Launch Preparation (1-3 Months):
 Complete Product Development - Formulation Testing:
Verify that all feed formulations tailored to different stages (calf, heifer, pregnancy, lactation)
have undergone effectiveness testing and scientific validation.
 Quality Assurance: To maintain high standards, establish a quality control lab to do
regular testing on both raw materials and final goods.
 Packaging Design: Create environmentally sustainable, long-lasting, and educational
packaging that explains the advantages of the product and how to use it.
 Configure Production Space
 Infrastructure: Finish building and preparing the manufacturing facility, including
installing the equipment needed to produce feed (mixers, grinders, packing machines).
 Supply Chain: To guarantee steady supply and price stability, enter into long-term
agreements with reputable suppliers of raw materials (maize, wheat, rice, and oil
cakes).
 Logistics: Collaborate with nearby transportation providers to establish a productive
distribution system, particularly for rural
 Regulatory Compliance
 Certificates: Ensure that local and federal rules are followed by obtaining the
permits and certificates required for the manufacture of animal feed.
Governmental Assistance: To lower the initial capital investment, obtain subsidies
under government programs such as DEDS and NLM.
 Team Building
 Hiring: Hire important staff members, such as marketing experts, quality assurance
specialists, and animal nutritionists.
 Training: Make sure staff members are knowledgeable about the product,
manufacturing procedures, and customer interaction tactics by conducting onboarding
and training programs.
9.1.2 Phase 2: Pilot Launch and Market Testing (4-6 Months)
 Pilot Programs
 Select Pilot Regions: For the pilot launch, choose two to three areas with a high
proportion of small and medium-sized dairy producers.
 Farmer Engagement: To present the product and its advantages, hold educational
seminars and demonstration programs in these areas.
 Trial Packs: To promote early adoption and get input, give farmers free
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trial packs.

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 Marketing and Awareness Campaigns
 Local Partnerships: To market the product, work with veterinarian clinics,
dairy cooperatives, and agricultural extension agents.
 Events and Exhibitions: To promote the product and give out samples, take part
in regional dairy expos and agricultural fairs.
 Digital Marketing: To generate interest and raise awareness, start focused
digital campaigns using email marketing and social media.
 Feedback Collection
 Interviews and Surveys: Get input from farmers who utilized the trial packets
to comprehend their experiences and pinpoint areas in need of development.
 Analysis of Data: Examine the information to determine how the feed affects
milk production, the health of the cow, and farmer satisfaction in general.
9.1.3 Phase 3: Full Scale Launch (7-12 Months):
 Scale Production
 Increase Capacity: To satisfy the expected demand from a larger market, scale
up production based on pilot feedback.
 Quality Control: To guarantee uniformity throughout all batches, maintain strict
quality control procedures.
 Extend Network of Distribution
 To guarantee that the product reaches rural and semi-urban regions, collaborate
with regional distributors.
 Retail Outlets: To make the product easily accessible to farmers, form alliances
with general shops and small-scale agro-retailers.
 Direct Sales: Establish a direct sales channel to handle large-scale farmer and
dairy cooperative bulk orders.
 Aggressive Marketing
 Farmer Testimonials: To establish confidence and trust, use pilot region
success stories and testimonials.
 Educational Campaigns: To inform farmers about the advantages of stage-
specific feeding, keep setting up training sessions and seminars.
 Loyalty Programs: To promote long-term adoption, implement loyalty programs
and discounts for loyal consumers.

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  Keep an eye on and improve
 Sales Tracking: Track sales figures across various geographies and modify
marketing tactics as necessary.
 Customer Support: Assemble a specialized customer service staff to respond to
farmer inquiries and quickly handle problems.
 Feedback Loop: To enhance the offerings of goods and services, continuously
collect input from farmers.
9.1.4 Phase 4: Growth and Expansion (Year 2 and beyond):
 Product Line Expansion
 New Variants: Launch new feed varieties (such as organic feed or feed for
certain breeds) in response to farmer input and new market demands.
 Provide extra services like individualized feeding programs, e-farm advice, and
cattle health monitoring tools as value-added services.
 Geographic Expansion
 Other Regions: Building on the success of the original launch, expand to other
areas with a high level of dairy farming activities.
 Export Markets: Look for ways to sell the product abroad, where there is a rising
need for premium cow feed.
 Technology Integration
 Data-Driven Solutions: Collaborate with technology suppliers to use IoT devices
to track cattle health and deliver data-driven feeding suggestions.
 E-Commerce Platform: Create an e-commerce platform to make it simpler for
farmers to buy feed by enabling online sales and subscriptions.
 Sustainability Initiatives
 Eco-Friendly Practices: Use sustainable manufacturing methods, such cutting
waste and utilizing renewable energy sources.
 Farmer Training: To improve long-term production and environmental effect,
keep teaching farmers about sustainable agricultural methods.
9.1.5 Key Performance Indicators:
The number of new farmers using "Cow Care" feed is the first indicator of "customer
acquisition."
 Sales Growth: The monthly increase in sales volume and income.
Farmer Satisfaction: Farmers' evaluations on the efficacy of the products and the level of
customer service.

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  The percentage of the target market that has been achieved in pilot and
expansion regions is known as Market Penetration.
 Operational Efficiency: Supply chain efficiency and manufacturing cost reduction.
 Logistical Challenges: To guarantee on-time delivery, optimize distribution routes
and collaborate with regional logistics companies.
 Regulatory Changes: Keep abreast of the latest regulations and ensure compliance
by conducting routine audits.
9.2 Executive Summary
The goal of the "Cow Care" company is to increase dairy output and animal health by
offering premium, stage-specific cow feed. Scalability, long-term sustainability, and a
successful market launch are guaranteed by this methodical execution approach.
9.2.1 Phase 1: Getting Ready for the Launch (Months 1-3)
Finalizing formulas that have been scientifically proven, establishing a quality-controlled
production facility, obtaining regulatory permissions, and recruiting a qualified staff are the
main objectives of the first phase. A robust supply chain will be established through
important alliances with suppliers of raw materials and logistical companies.
9.2.2 Phase 2: Market testing and pilot launch (Months 4-6)
Farmers will be introduced to the product through instructional seminars, trial packs, and
partnerships with dairy cooperatives during a controlled pilot rollout in a few dairy-rich
regions. Digital advertisements, agricultural fairs, and farmer testimonies will all be used in
marketing initiatives. Product optimization will be driven by customer input.
9.2.3 Phase 3: Launch at Full Scale (Months 7–12)
Market penetration will be fueled by increasing manufacturing, developing loyalty programs,
and growing the distribution network through direct sales and retail locations. Through
aggressive marketing and ongoing farmer participation, "Cow Care" will become a reputable
brand.
9.2.4 Phase 4: Development and Growth (Year 2 and later)
Accessibility and efficiency will be improved by product line growth, regional scalability,
and the incorporation of digital solutions (e-commerce, IoT tracking). Eco-friendly farming
practices and continuous farmer education are examples of sustainability projects.
Important Success Factors & Risk Reduction, Market penetration, farmer satisfaction, sales
growth, and client acquisition will all be used to gauge performance. We'll take proactive
measures to handle risks including price swings, logistical difficulties, and regulatory
changes.

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CHAPTER 10

CONCLUSION

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 The "Cow Care" company offers a thorough and organized method for raising dairy output
and cow nutrition. The company wants to improve milk production, fertility, and general
bovine health with their stage-specific feed compositions. By reducing risks and maximizing
growth potential, the strategic execution plan guarantees a seamless transition from research
and development to market launch. The company is in a position to make a significant
influence on the dairy farming industry in the long run by addressing nutritional gaps through
education and awareness efforts.
A staged approach is used in the implementation method to guarantee scalability and
sustainability. Regulatory permissions, infrastructure preparation, and product validation are
the main priorities of the pre-launch stage. Real-world testing during a pilot phase enables
any necessary modifications based on input from farmers. The full-scale launch uses
aggressive marketing and distribution growth to increase market penetration. Lastly, product
diversity, digital integration, and regional expansion all contribute to long-term success.
According to market research, there is a significant need for stage-based nutrition and a
high level of farmer readiness to spend money on high-quality feed. Price sensitivity and
ignorance, however, continue to be major obstacles. "Cow Care" may promote adoption and
foster trust by utilizing alliances with veterinary clinics, dairy cooperatives, and government
programs. Furthermore, trial packs and loyalty programs are examples of focused marketing
tactics that can help dispel doubt and boost client retention.
With a planned loan payback schedule and anticipated profitability, "Cow Care" has a
bright financial future. Financial stability will be further improved by economies of scale and
efficient cost control strategies. The brand may increase its reach and streamline operations
by incorporating data-driven solutions, such e-commerce sales and IoT-based livestock health
monitoring. Initiatives for sustainability will also be essential to preserving long-term
viability. In conclusion, "Cow Care" is in a strong position to transform the cow feed market
by providing accessible, reasonably priced, and scientifically developed nutrition solutions.
By prioritizing education, innovation, and strategic relationships, the company may establish
a viable and long-lasting business strategy. "Cow Care" might emerge as a major force in the
dairy nutrition industry by consistently adjusting to consumer needs and utilizing technology
breakthroughs, which would be advantageous for farmers and the agricultural ecosystem
overall.

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References
 Ministry of MSME, Government of India, 2023
(https://msme.gov.in)/
 Nutrition and feeding of dairy cattle
(https://pmc.ncbi.nlm.nih.gov/articles/PMC7153313/)
 Major Advances in Applied Dairy Cattle Nutrition
(https://www.sciencedirect.com/science/article/pii/S0022030206721993)
 Transition cow nutrition and management strategies of dairy herds
(https://www.journalofdairyscience.org/article/S0022-0302(22)00730-5/fulltext)
 Nutritional Requirements of Dairy Cattle
(https://www.msdvetmanual.com/management-and-nutrition/nutrition-dairy-
cattle/nutritional-requirements-of-dairy-cattle)
 How do we create a balanced diet for cows?
(https://akshayakalpa.org/blog/how-do-we-create-a-balanced-diet-for-cows/)
 Economic Survey of India, 2023
(https://www.indiabudget.gov.in/economicsurvey/)

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