Comprehensive Cow Shed Business Plan and Loan Analysis

Farm Project - Andhra Pradesh, Kalikiri

February 13, 2025

Contents
1 Introduction 3

2 Background and Objectives 3

2.1 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.2 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

3 Construction Plan 3
3.1 Shed Design and Layout . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
3.2 Internal Layout . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
3.3 External Layout . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

4 Detailed Blueprints and Layouts 4

4.1 Overall Layout Diagram . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
4.2 2D Blueprint of the Cow Shed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
4.3 3D Visualization of the Cow Shed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

5 External Facilities and Support Infrastructure 4

5.1 Waste Dump and Management System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5.1.1 Waste Dump Layout Diagram . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
5.2 Feed Storage and Water Supply Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
5.2.1 Feed Storage Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
5.2.2 Water Supply System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
5.3 Security and Monitoring Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
5.4 Solar Power Installation for External Units . . . . . . . . . . . . . . . . . . . . . . . . . . 6

6 Construction Process and Timeline 6

6.1 Pre-Construction Phase (Month 1-2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
6.2 Construction Phase (Month 3-6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
6.3 Post-Construction Phase (Month 7 Onwards) . . . . . . . . . . . . . . . . . . . . . . . . . 7

7 Financial Analysis 7
7.1 Investment Breakdown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
7.2 Loan Details and Government Subsidies . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
7.3 EMI Calculation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
7.4 Revenue Projections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
7.4.1 Milk Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
7.4.2 Sales Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
7.4.3 Monthly Expense Breakdown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
7.4.4 Net Profit Calculation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

8 Equipment and Machinery Analysis 8

8.1 Grass Chopper Machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
8.2 Additional Machinery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

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Farm Project - Kalikiri Cow Shed Business Plan

9 Operational Plan 9
9.1 Daily Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
9.2 Weekly and Monthly Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

10 Labor and Management 9

10.1 Staff Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
10.2 Management Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

11 Risk Analysis and Contingency Planning 9

11.1 Risk Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
11.2 Contingency Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

12 Future Expansion and Scalability 10

12.1 Expansion Possibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
12.2 Scalability of Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

13 Environmental and Sustainability Considerations 10

13.1 Waste Management and Recycling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
13.2 Energy Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
13.3 Water Conservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

14 Documentation and Record-Keeping 10

14.1 Record Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
14.2 Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

15 Miscellaneous Considerations 11
15.1 Quality Control and Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
15.2 Technology Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
15.3 Community and Market Outreach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

A Appendix A: Detailed Material Costs 11

B Appendix B: Equipment Details 11

C Appendix C: Loan and EMI Details 12

D Appendix D: Revenue Projections 12

E Eligibility and Documents Required for Loan Application 12

E.1 Eligibility Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
E.2 Documents Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

F Business Plan Documentation 13

F.1 Detailed Project Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
F.1.1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
F.1.2 Layout Designs and Construction Plans . . . . . . . . . . . . . . . . . . . . . . . . 13
F.1.3 Material Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
F.1.4 Revenue Projections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
F.2 Feasibility Study and Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
F.2.1 Feasibility Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
F.2.2 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
F.2.3 Sensitivity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
F.2.4 Risk Factors and Mitigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
F.2.5 Conclusion of Feasibility Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
F.3 Additional Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

G Appendix E: Operational Guidelines 16

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Farm Project - Kalikiri Cow Shed Business Plan

1 Introduction
This document provides a detailed plan for constructing a modern cow shed, sourcing materials, cost
analysis, expected earnings, and loan considerations. The plan covers:
• Construction and layout design
• Material and equipment sourcing
• Detailed blueprints and diagrams (both 2D and 3D)
• Financial analysis including government subsidies, bank loans, and EMI calculations
• Operational and maintenance plans
• Future expansion and risk management strategies

2 Background and Objectives

2.1 Background
Our project builds on a 20-year legacy in the dairy business. Based in Kalikiri, Andhra Pradesh, this
plan leverages traditional expertise and modern techniques to build a state-of-the-art cow shed for 20
cows.

2.2 Objectives
The main objectives are:
• Construct a modern cow shed with designated zones for resting, feeding, milking, and waste man-
agement.
• Source quality materials at competitive prices.
• Utilize technology (solar, CCTV, IoT) to enhance efficiency.
• Secure a bank loan under favorable government schemes.
• Achieve a robust monthly profit to ensure quick loan repayment and business sustainability.

3 Construction Plan
3.1 Shed Design and Layout
The cow shed is designed to be 50 ft by 30 ft (1,500 sq. ft.) and includes:
• Roofing: Elevated with metal sheets and integrated solar panels.
• Flooring: Polished concrete with an anti-slip finish and proper drainage slope.
• Ventilation: Open sidewalls with insect mesh to ensure maximum airflow.
• Fencing: Galvanized metal fencing surrounding the structure.

3.2 Internal Layout

The interior is divided into specific zones:
1. Resting Zone: Spacious area with soft bedding.
2. Feeding Zone: Automated feeding troughs placed along the perimeter.
3. Milking Area: Dedicated section with non-slip flooring and milking equipment.
4. Waste Management Zone: For dung collection and processing.
5. Storage Area: For feed, veterinary supplies, and tools.

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3.3 External Layout

Outside the shed, the facility includes:

• Waste Dump Area: Designated space with drainage for solid and liquid waste.
• Feed Storage Units: Weatherproof, secure storage adjacent to the shed.
• Water Supply System: Water tanks, pipelines, and backup generators.
• Security: CCTV cameras and alarms strategically placed.

• Solar Power: Additional panels to power external systems.

4 Detailed Blueprints and Layouts

4.1 Overall Layout Diagram

Cow Shed (50 ft x 30 ft)

CCTV/Solar Control
Resting Area Feeding Area

Water Supply
Feed Storage

Milking Area Waste Management

Waste Dump Area

Figure 1: Overall Layout of Cow Shed and External Facilities

4.2 2D Blueprint of the Cow Shed

4.3 3D Visualization of the Cow Shed

5 External Facilities and Support Infrastructure

5.1 Waste Dump and Management System
The waste dump area is designed for the collection and processing of cow dung and other organic waste.
Its features include:
• Segregation of solid and liquid waste.
• Integrated drainage to prevent waterlogging.

• Provisions for biogas production.

• Scheduled maintenance for hygiene.

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Farm Project - Kalikiri Cow Shed Business Plan

2D Blueprint of Cow Shed

Resting Feed
Automated Zone Troughs Feeding Zone

Milking Zone Waste Management

Milking Equipment Area

Figure 2: 2D Blueprint of the Cow Shed with Internal Zones

Resting Zone Feeding Zone

Milking Zone Waste Management

Figure 3: 3D Visualization of the Cow Shed with Solar Panels on Roof

5.1.1 Waste Dump Layout Diagram

5.2 Feed Storage and Water Supply Units

5.2.1 Feed Storage Units
• Constructed with weatherproof metal and treated wood.

• Located adjacent to the main shed for easy access.

• Equipped with humidity control systems.

5.2.2 Water Supply System

• 5000-liter water tanks with backup generators.

• A network of pipelines distributing water to the shed.

• Rainwater harvesting systems to supplement supply.

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Farm Project - Kalikiri Cow Shed Business Plan

Waste Dump Area

Solid Waste Liquid Waste Drainage Biogas Setup

Figure 4: Waste Dump Layout with Segregation Zones

5.3 Security and Monitoring Systems

• Installation of multiple CCTV cameras around the facility.
• Motion sensors and alarm systems integrated with a central control panel.
• Solar-powered lighting and monitoring devices.

5.4 Solar Power Installation for External Units

• Additional solar panels for powering external equipment.
• Inverters and battery backups ensure uninterrupted power.
• Regular maintenance of panels for optimum performance.

6 Construction Process and Timeline

6.1 Pre-Construction Phase (Month 1-2)
1. Site selection and land surveying.
2. Obtaining permits and local government approvals.
3. Finalizing design blueprints and detailed layouts.
4. Sourcing and ordering construction materials.

6.2 Construction Phase (Month 3-6)

1. Foundation Work:
• Excavation and leveling.
• Laying reinforced concrete foundations.
• Installation of drainage and sewage systems.
2. Superstructure Construction:
• Erecting steel frames and support structures.
• Brickwork and wall construction.
• Installation of roofing sheets and solar panels.
3. Interior Installations:
• Polished concrete flooring with anti-slip coating.

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• Setup of feeding troughs and water systems.

• Installation of the milking area with modern equipment.
4. External Facility Setup:

• Construction of feed storage units.

• Setting up the waste dump and biogas processing area.
• Laying water pipelines and installing security systems.
5. Final Touches:

• Painting and branding of the facility.

• Final inspection and quality assurance.

6.3 Post-Construction Phase (Month 7 Onwards)

• Staff training and operational setup.
• Official launch and commencement of dairy operations.
• Ongoing maintenance and quality control.

7 Financial Analysis
7.1 Investment Breakdown

Component Description Cost (INR)

Construction (Shed) Foundation, walls, roofing 15,00,000
Feeding/Water System Automated troughs, water tanks, pipelines 5,00,000
Milking Equipment Automated milking system, stalls 3,00,000
Solar Installation Roof panels, inverter, battery backup 2,50,000
CCTV and Security Cameras, sensors, control system 1,00,000
Livestock Procurement 20 cows at market rate 10,00,000
Miscellaneous Permits, labor, contingencies 1,00,000

textbfTotal Investment
textbf36,50,000

7.2 Loan Details and Government Subsidies

• textbfTotal Project Cost: INR 10,00,000 (example base cost for calculations)
• textbfBank Loan (70%): INR 7,00,000
• textbfSubsidy (30%): INR 3,00,000 provided by NABARD and state schemes
• textbfInterest Rate: 9% per annum

• textbfLoan Tenure: 5 years (60 months)

7.3 EMI Calculation

The EMI is calculated using the formula:

P × r × (1 + r)n
EM I = (1)
(1 + r)n − 1

Where:
• P = INR 7,00,000 (loan amount)

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Farm Project - Kalikiri Cow Shed Business Plan

• r = 9% annual interest rate / 12 = 0.0075 monthly

• n = 60 months
Calculated EMI is approximately INR 14,566 per month.

7.4 Revenue Projections

7.4.1 Milk Production
• Average milk yield per cow: 10 liters per day
• Total daily milk production: 20 cows × 10 = 200 liters
• Monthly production: 200 liters × 30 = 6000 liters

7.4.2 Sales Revenue

• Milk selling price: INR 40 per liter

• Monthly revenue: 6000 liters × INR 40 = INR 2,40,000

7.4.3 Monthly Expense Breakdown

• Feed Cost: INR 50,000
• Labor and Maintenance: INR 30,000
• Loan EMI: INR 14,566

• Miscellaneous: INR 10,000

• textbfTotal Expenses: INR 1,04,566

7.4.4 Net Profit Calculation

Net Monthly Profit = IN R2, 40, 000 − IN R1, 04, 566 = IN R1, 35, 434 (2)

8 Equipment and Machinery Analysis

8.1 Grass Chopper Machines
A comparison of various grass chopper machines available in the market:

Brand Model Power Cost (INR)

Kirloskar KBC-10 2 HP 30,000
Vidhata JF 2D 3 HP 45,000
Mahindra AgroMax 5 HP 60,000

8.2 Additional Machinery

• Milking Machines: Modern automated systems costing up to INR 3,00,000.
• Feed Mixers: Industrial feed mixers range from INR 1,00,000 to INR 2,00,000.

• Water Pumps: High-efficiency pumps available for INR 20,000 to INR 30,000.
• Miscellaneous Attachments: Additional attachments for grass choppers range from INR 5,000
to INR 10,000.

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Farm Project - Kalikiri Cow Shed Business Plan

9 Operational Plan
9.1 Daily Operations
• Morning Routine:
– Cleaning and inspection of the cow shed.
– Feeding and watering of cows.
– Milking operations starting at 6 AM.

• Midday Routine:
– Routine maintenance and cleaning.
– Health checks and veterinary visits.
• Evening Routine:

– Second milking session.

– Final feeding and preparation for the night.

9.2 Weekly and Monthly Maintenance

• Weekly deep cleaning and disinfection.
• Monthly equipment maintenance and safety checks.
• Regular training for staff on animal care and hygiene.

10 Labor and Management

10.1 Staff Requirements
• Caretakers: 2 full-time staff for daily operations.
• Veterinarian: On-call for regular check-ups and emergencies.

• Maintenance Technician: 1 for equipment and facility upkeep.

10.2 Management Structure

1. Project Manager: Oversees overall operations.

2. Financial Manager: Handles budgeting, loans, and financial records.

3. Operations Manager: Supervises daily activities and ensures quality control.
4. Quality Control Team: Conducts periodic audits and maintains standards.

11 Risk Analysis and Contingency Planning

11.1 Risk Factors
• Market fluctuations affecting milk prices.
• Health risks (disease outbreaks among cows).
• Equipment failures leading to operational delays.

• Financial risks related to loan repayment and unexpected expenses.

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11.2 Contingency Measures

• Maintain an emergency fund covering 3 months of expenses.

• Regular maintenance and prompt repair of all equipment.

• Diversify income by exploring value-added dairy products.
• Secure additional insurance for livestock and infrastructure.

12 Future Expansion and Scalability

12.1 Expansion Possibilities
• Increase cow capacity from 20 to 30-40 cows.
• Diversify into goat and poultry farming.
• Add value-added dairy processing (cheese, yogurt, paneer, ghee).

12.2 Scalability of Infrastructure

• Design modular sections to allow seamless expansion.
• Ensure external facilities (storage, waste management, water supply) can be scaled up.

• Invest in technology (IoT sensors, automated systems) to support expansion.

13 Environmental and Sustainability Considerations

13.1 Waste Management and Recycling
• Establish a biogas plant to convert cow dung into energy.

• Use recycled organic waste as fertilizer for fodder cultivation.

• Implement proper sewage disposal and water recycling systems.

13.2 Energy Efficiency

• Install solar panels on all available surfaces.
• Utilize LED lighting and energy-efficient machinery.
• Conduct periodic energy audits to reduce operational costs.

13.3 Water Conservation

• Implement rainwater harvesting systems.
• Use water recycling for cleaning and irrigation.

• Install water-efficient fixtures throughout the facility.

14 Documentation and Record-Keeping

14.1 Record Maintenance
• Maintain daily logs of milk production, feed consumption, and operational expenses.
• Use digital record-keeping software for real-time monitoring.

• Keep detailed maintenance logs for equipment and facility upkeep.

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14.2 Reporting
• Monthly financial statements.

• Quarterly performance reports.

• Annual reviews for business planning and strategy.

15 Miscellaneous Considerations
15.1 Quality Control and Compliance
• Regular inspections to ensure adherence to hygiene standards.

• Compliance with local government regulations and safety standards.

• Obtain certifications for organic and quality dairy production.

15.2 Technology Integration

• Use IoT sensors for monitoring cow health and environmental conditions.
• Automate feed distribution and milking processes.
• Implement a central control system for security (CCTV and alarms).

15.3 Community and Market Outreach

• Engage with local cooperatives and dairy associations.
• Develop a brand identity for quality milk and dairy products.

• Use digital marketing to reach urban markets.

A Appendix A: Detailed Material Costs

Material Quantity Cost (INR)

Cement (50kg bags) 100 50,000
Steel rods (TMT) 500kg 40,000
Bricks 5,000 units 35,000
Roofing sheets 30 sheets 45,000
Concrete flooring 1,500 sq. ft. 75,000
Solar panels 5 kW system 2,50,000
Water tanks 2 tanks (5000 liters each) 40,000
Fencing 200 ft 30,000
Total Estimated Cost 5,65,000

B Appendix B: Equipment Details

Equipment Model/Brand Specification Cost (INR)

Grass Chopper Kirloskar KBC-10 2 HP 30,000
Grass Chopper Vidhata JF 2D 3 HP 45,000
Grass Chopper Mahindra AgroMax 5 HP 60,000
Milking Machine AutoMilker 3000 4-stall automated 3,00,000
Feed Mixer AgroMix 500 500 kg capacity 1,50,000
Water Pump AquaFlow X1 2 HP, high-efficiency 25,000
Total Equipment Cost Approximately 5,10,000

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C Appendix C: Loan and EMI Details

Detailed calculation of the EMI:
Loan Amount (P) = INR 7,00,000
Monthly Interest Rate (r) = 9% per annum / 12 = 0.0075
Loan Tenure (n) = 60 months

EMI = [P * r * (1+r)^n] / [(1+r)^n - 1]

= [700000 * 0.0075 * (1.0075)^60] / [(1.0075)^60 - 1]
INR 14,566 per month

D Appendix D: Revenue Projections

• Daily milk yield per cow: 10 liters.
• Total daily yield for 20 cows: 200 liters.
• Monthly milk production: 6000 liters.
• Milk selling price: INR 40 per liter.
• Monthly revenue: INR 2,40,000.

E Eligibility and Documents Required for Loan Application

E.1 Eligibility Criteria
To secure a bank loan and government subsidies for the cow shed project, the applicant must meet the
following eligibility criteria:
• Age: The applicant should be at least 21 years old.
• Income Requirement: A minimum combined monthly income of INR 1.5 lakhs is expected. This
confirms the applicant’s ability to service the EMI.
• Credit History: A good credit score with no past defaults is essential.
• Experience: Preference is given to those with previous experience in dairy farming or a related
agricultural business. In this case, having a 20-year legacy in milk business (through a family
member) will be considered favorable.
• Category: The applicant must belong to the General (OC) category as per the current guidelines.

E.2 Documents Required

Applicants need to prepare and submit a comprehensive set of documents as part of the loan application.
These documents include:

• Identity Proof:
– PAN Card
– Aadhaar Card
– Passport or Voter ID (any one)
• Address Proof:
– Utility bills (electricity, water, etc.)
– Rental agreement or property tax receipt
– Land ownership documents (if applicable)
• Income Proof:

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– Salary slips for the past 6 months

– Bank statements for the last 6 to 12 months
– Income Tax Returns (ITR) for the previous financial year

• Business Plan Documentation:

– Detailed project report including layout designs, construction plans, material costs, and rev-
enue projections
– Feasibility study and break-even analysis

• Property Documents:
– Land ownership documents and survey reports
– Construction permits and approvals from local authorities
• Experience and Legacy Proof:

– Certificates or references indicating prior experience in dairy farming

– Historical business records or testimonials, especially highlighting the 20-year milk business
legacy in your family
• Loan Application Documents:

– Completed loan application form as per the bank’s requirements

– Any additional forms specific to government subsidy schemes (e.g., NABARD, PM Kisan
Samman Nidhi)
• Collateral Documents (if applicable):

– Documentation of assets offered as collateral, such as property deeds or vehicle registrations

F Business Plan Documentation

F.1 Detailed Project Report
This section outlines the comprehensive project details for constructing the cow shed, including layout
designs, construction plans, material costs, and revenue projections.

F.1.1 Overview
The objective of the project is to construct a state-of-the-art cow shed in Kalikiri, Andhra Pradesh.
Leveraging a 20-year legacy in dairy farming, the project is designed to house 20 cows in a 1,500 sq.
ft. facility. The facility includes separate zones for resting, feeding, milking, and waste management.
External support systems include feed storage, water supply, waste dump areas, CCTV monitoring, and
solar power installations.

F.1.2 Layout Designs and Construction Plans

Internal Layout: The internal design is divided into four main zones:
1. Resting Zone: An area with comfortable bedding for the cows.
2. Feeding Zone: Equipped with automated feeding troughs arranged along the perimeter.
3. Milking Zone: A dedicated area fitted with modern milking equipment and non-slip flooring.

4. Waste Management Zone: A section for collecting and processing cow dung, facilitating biogas
production.
Refer to the 2D and 3D blueprints provided in Sections 4.2 and 4.3 for visual details.

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External Layout: External to the main shed, the facility includes:

• Feed Storage Unit: A weatherproof structure for storing animal feed.
• Water Supply System: Comprising large water tanks, pipelines, and a rainwater harvesting
mechanism.
• Waste Dump Area: An area with a proper drainage system for separating solid and liquid
wastes.
• Security and Monitoring: CCTV cameras and a dedicated solar-powered control room.

F.1.3 Material Costs

The project requires a variety of construction materials. The detailed cost breakdown is given below:

Material Required Quantity Estimated Cost (INR)

Cement (50kg bags) 100 50,000
Steel rods (TMT) 500kg 40,000
Bricks 5,000 units 35,000
Roofing sheets 30 sheets 45,000
Concrete flooring 1,500 sq. ft. 75,000
Solar panels 5 kW system 2,50,000
Water tanks 2 (5000 liters each) 40,000
Fencing 200 ft 30,000
Total Estimated Cost 5,65,000

F.1.4 Revenue Projections

Based on operational estimates:
• Daily Milk Production: Each cow yields approximately 10 liters per day.

• Total Daily Yield: 20 cows × 10 liters = 200 liters.

• Monthly Production: 200 liters × 30 = 6000 liters.
• Selling Price: INR 40 per liter.

• Monthly Revenue: 6000 liters × IN R40 = IN R2, 40, 000.

F.2 Feasibility Study and Break-even Analysis

This section evaluates the financial viability of the project.

F.2.1 Feasibility Study

Market Analysis:
• Demand: Consistent demand for milk and dairy products in urban and semi-urban markets.
• Legacy Advantage: The project leverages a 20-year history in dairy farming, ensuring expertise
in operations.

• Subsidies: Government schemes (e.g., NABARD, PM Kisan Samman Nidhi) offer subsidies up to
25-33%.

Operational Feasibility:
• Technology Integration: Use of automated feeding, milking systems, and IoT-based monitoring.
• Cost Control: Efficient management of feed, labor, and maintenance through modern practices.

• Risk Management: Diversification into value-added dairy products to buffer market fluctuations.

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Farm Project - Kalikiri Cow Shed Business Plan

F.2.2 Break-even Analysis

The break-even point is determined by comparing the total investment with net monthly profit.

Assumptions:
• Total Investment: INR 36,50,000 (comprising construction, equipment, and initial setup).
• Monthly Expenses: Feed (INR 50,000), Labor (INR 30,000), Loan EMI (INR 14,566), Miscella-
neous (INR 10,000) for a total of INR 1,04,566.
• Monthly Revenue: INR 2,40,000 from milk sales.
• Net Monthly Profit: IN R2, 40, 000 − IN R1, 04, 566 ≈ IN R1, 35, 434.

Break-even Calculation:
Total Investment
Break-even Period (months) = (3)
Net Monthly Profit
36, 50, 000
= ≈ 27 months (4)
1, 35, 434

F.2.3 Sensitivity Analysis

To assess the robustness of the project:
• A 10% increase in feed costs would reduce net profit by approximately INR 13,543 per month.
• A 10% increase in milk price would increase monthly revenue by INR 24,000.
• Even with cost fluctuations, the break-even period is expected to remain within 30-36 months.

F.2.4 Risk Factors and Mitigation

Risk Factors:
• Market Risks: Variations in milk prices.
• Operational Risks: Health issues among cows or equipment failure.
• Financial Risks: Unforeseen expenses affecting profit margins.

Mitigation Strategies:
• Secure long-term supply contracts to stabilize milk prices.
• Regular veterinary care and preventive maintenance schedules.
• Maintain an emergency fund to cover unexpected costs.
• Diversify income streams by producing value-added dairy products.

F.2.5 Conclusion of Feasibility Study

Based on the analysis, the project is financially viable with a break-even period of approximately 27
months under current assumptions. With robust risk management and operational efficiency, the project
promises sustainable profitability and scope for future expansion.

F.3 Additional Considerations

• Ensure that all documents are updated and certified by the appropriate authorities.
• It is advisable to prepare a checklist before submission to the bank to avoid delays.
• Regularly review the eligibility criteria as they may change with new government policies or bank
guidelines.

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Farm Project - Kalikiri Cow Shed Business Plan

G Appendix E: Operational Guidelines

• Maintain strict hygiene standards with cleaning twice daily.
• Follow a fixed feeding schedule three times a day.
• Schedule regular veterinary check-ups and vaccinations.

• Use digital record-keeping for production, expenses, and maintenance logs.

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