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Model Bankable Projects

   
   
 

Animal Husbandry

 
Poultry Products
 
 

Scheme for sorting, grading, labelling, packing and storage of Table eggs for exports

1 Objective : 1. To create infrastructure for collection, grading, labelling, packing, cold storage Tables eggs.

2. To meet standards and specifications required by overseas exporters.

3. To create awareness among farmer producers, traders and consumers about hygiene, sanitation and quality of scientifically graded, labeled and packed food items.

2 Advantages :

:

Farmer will get a better price for his eggs.

Poultry exports will go up and it will also help in stabilisation of egg prices throughout the year.

3 Project components : Civil structures -

(7000 s.ft)

* Egg collection, grading, labelling and packing

* Store room

* Precooling and wash room

* Egg loading area

* Administrative office

         
      Machinery -

Imported -

Egg grading machine

Egg packing machine

         
      Indigenous - Labelling Machine

Refrigeration & cold storage.

         
      Misc - gen set, Trolleys, weighing balance etc.
         
4 Project size : To handle 1.5 lakh eggs per day.
         
5 Project cost : Civil structures Rs. 17.50 lakhs
      Machinery Rs. 36.87 lakhs
      Misc Assets Rs. 7.19 lakhs
      Others Rs. 3.33 lakhs
      Working capital margins Rs. 13.99 lakhs
      Total Rs. 78.87 lakhs

 

6 Source of funds : Subsidy from APEDA Rs. 32.34 lakhs
      Promoters contribution Rs. 11.83 lakhs
        44.17 lakhs
      Bank loan 34.70 lakhs
      Total 78.87 lakhs
         
7 Economic parameters

Capacity utilisation (%)

Operating profit (Rs. lakhs)

: I II III onwards

60 80 100

32.43 35.14 46.87

         
8 Financial Ratios : IRR

Average DSCR

34 %

5.19

         
9 Strength :
  • Project is based in egg producing states
  • Infrastructural facilities like electricity, roads, ports and good entrepreneurship.
  • Availability of skilled man power.
  • Already eggs are being exported.
  • Perspective clients can be easily trained locally.
  • Good market in the Gulf for export of eggs.
         
10 Opportunities :
  • export earning can be significantly increased.
  • over a period of time, even domestic consumer may demand for graded eggs.
         
11 Incentives : APEDA is providing capital subsidy upto 50% on buildings and machinery.

APEDA is also extending export incentive on freight charges.

Operations in the project

Farmers ® Egg collection ¬ Farmers

¯

Tranportation

¯

Egg processing

¯

Receiving Dock and egg Arrival Hall (Room Temp)

¯

Sorting of unsuitable eggs

¯

Egg grading

¯

Egg labelling

¯

Packing of eggs

¯

Loading in reefer container

¯

Docking of Container at Shipping yard

 

Scheme for financing setting up of Poultry market

1 Objectives :   To create infrastructure for marketing of broilers as well as
          cull birds in he major cities/towns  
2 Location :   Outside city/Towns int he major producing and consuming states
3 Beneficiaries :   Agricultural produce Market committees/Poultry Associations
                 
4 Project Components :          
                 
    * Site Development   - Fencing/compund wall, internal roads, gates
    * Civil Structures   - Auction Halls      
        - Office cum shops for the traders  
        - Processing facilites    
        - Office for AP MC/Poultry Association  
        - Rest House for the farmers    
        - Bank, STD booth, canteen    
        - Washing area for vehicles    
        - Toilets and Bathrooms    
                 
    * Vehicles            
                 
5 Project Cost :   Depends upon the number of traders,  
          Quantum of birds received and processed
                 
6 Margin money :   25% or subsidy amount, if any  
                 
7 Economics :          
                 
  *Item of Income : - Gate pass for the vehicle    
        - Rent of shops/offices of traders  
        - Market fee      
        - Penalty's received    
                 
  *Items of expenditure : - Electiricity charges    
        - Salary of staff    
        - Wages of maintenance staff  
                 
8 Reapyment period :   5-6 years depending up on the gorss surplus
          with first year as a grace period  
                 
9 Implementation :   Gazipur poultry market (No bank finance)


EGG/BROILER CARTS
       
       
I OBJECTIVE : TO PROMOTE CONSUMPTION OF EGGS IN
      RURAL, SEMI-URBAN AND URBAN AREAS
       
      TO PROVIDE EMPLOYMENT TO THE
      EDUCATED UNEMPLOYED AND HANDICAPPED
      PEOPLE FOR EARNING LIVELIHOOD.
       
       
II ITEMS OF INVESTMENT : EGG CART AND SIGN BOARD
       
      UTENSILS - STORE, BUCKETS, MUGS,
      PETROMAX, GLASSES, PLATES, ETC.
       
      WORKING CAPITAL - EGGS, BREAD,
      KEROSENCE, OIL, ETC.
`      
III UNIT SIZE : ONE CART
       
IV UNIT COST : RS.8000/-
       
V MARGIN MONEY : 10% SUBSIDY IF AVAILABLE FROM NECC\
      DRDA, THE MARGIN MONEY NEED NOT
      BE INSISTED.
       
       
VI ECONOMICS : INCOME :
       
      * SALE OF OMLETS\BOILED EGGS
      ALONGWITH BREAD
      * SALE OF TANDOORI CHICKEN
      DRUMSTICKS, ETC.
       
      EXPENDITURE :
       
      * EGGS\BIRDS
      * BREAD
      * CHILLIES & ONION
      * KEROSENE
      * GROUNDNUT OIL
       
      WITH 250 EGGS/10 BIRDS PER DAY ,
      THE GROSS SURPLUS WILL BE AROUND
      RS.1000-1200 PER MONTH
       
VII REPAYMENT PERIOD : 3 YEARS
       
VIII IMPLEMENTATION : PUNJAB, HARYANA, RAJASTHAN, KARNATAKA
      ORISSA. SCHEME HAS POTENTIAL IN ALL
      URBAN, SEMI-URBAN AND RURAL AREAS
 

PROJECT ON EGG PROCESSING PLANTS

1 Importance of Egg Essential part of food  
    Essential constituent of food  
    products-processed meat paste, fast food,  
    Bakery products.  
    Used for their taste, colour, binding capacity  
    and mechanical properties  
    As emulsifying agent used in Shampoos,  
    Chemicals, Soaps.  
    Egg white is low in fat content - good demand  
    as health product.  
       
2 Problems Perishable nature  
    Wide price fluctuations in different seasons.  
    * Summer/ sravan - Prices are low.  
    * Winter and Rainy - Prices are high.  
    Demand is seasonal.  
       
3 Measures Processing of egg into products.  
       
4 Products * Liquid products ( with sugar/salt)  
    * Solids - crystans  
    * Powder products - whole egg  
    - egg albumen  
    - egg yolk  
    *Egg Shell - animal feed.  
       
5 Advantages    
    Increased shelf life of the eggs  
    Can be transported at a cheaper rate and to  
    long distance  
    Price fluctuations can be minimised  
       
6 Export of eggs and products    
       
  Particulars Exports
    Present Potential
       
  Products Eggs in shell - Egg powder
       
    Hatching eggs - Frozen egg powder
       
    SPF eggs  
       
  Quantity (Tonnes)   11000
       
  Value (Rs. in millions)   1650
       
  Countries Saudi Arabia - Japan
    Oman - Netherlands
    Bangladesh - Germany
    UAE - France
       
7 World trade    
       
  Quantity 1 25 000 tonnes  
       
  Exporting countries Netherlands, USA, Canada, Belgium  
       
  Importing countries Japan, Germany, france, UK, Netherlands  
       
8 Items of Investment Buildings  
    Plant & Machinery  
    -Egg Washing System  
    - Egg Breaking System  
    - Pasteuriser  
    - Spray Drier  
    - Packing System  
    - Utilities - Boiler, Generator, Cold Storage  
    Transport Vehicles  
    Preoperative expenses  
    Margin Money on working capital  
       
  Unit Cost Depends on the quantity of eggs to be  
    handled and the products to be  
    manufactured.  
       
    A plant with a capacity to handle 1500 tons of  
    dry egg powder per annum will cost around  
    Rs.12 crores.  
       
    60% of it is on plant and machinery to be  
    imported mostly from USA, Denmark,  
    Holland, Belgium  
       
  Repayment Period 8 years with first two years as grace period  
       
  Implementation SKM egg products, Namakkal. Tamilnadu  
    Ovobel Foods, Marker, Karnataka  
    Balaji Foods, Hyderabad, Andhra Pradesh  
    Indo-Dutch Proteins, Hyderabad  
    Foods & Inn, Mumbai, Maharashtra  
    Western Foods, Ambala, Haryana  
    A. G. Foods, Ludhiana, Punjab  
       
  Potential Limited as the existing plants are not  
    functioning as on today  
       
 

SCHEME FOR POULTRY DRESSING PLANTS

          ( Rs. in lakhs )
           
S.No. Details Mini Automatic 1500 GB Mini Automatic Conveyorised Automatic Conveyorised
        Indigenous Imported
1 2 3 4 5 6
1 Capacity (Number of birds) 400/day 500/hour 1000/hour 1000/hour
2 Working days 300 300 300 330
3 Area requirement (S.Ft.) 2000 6000 6000 16000
4 Land and Site development 2.10 5.00 5.00 15.00
5 Civil construction cost 8.50 23.55 27.00 99.00
6 Plant and Machinery 24.75 55.40 108.00 340.00
7 Misc. fixed assets 7.00 8.00 23.00 58.00
8 Preliminary, preoperative and contingency 8.00 9.00 17.50 60.00
9 Margin money for working capital 3.75 3.75 7.50 53.00
10 Total project cost 54.10 104.70 188.00 626.00


Model Scheme for retail poultry dressing unit
     
1. Objectives : 1. To create awareness among the consumers the hygienic conditions and quality of dressed poultry meat.
     
    2. To establish infrastructure for supply of fresh and neatly dressed poultry meat to the consumers
     
    3.To create awareness about the quality products among the consumers.
     
2. Advantages : i) Consumer will get quality dressed birds/cut ups as well as ready to eat products at a reasonable price.
    ii) Demand for poultry products will increase with availability at convenient points
     
3. Project size : 150 kg dressed chicken and 300 pieces ready to eat products.
     
     
     
4. Project components and cost (Rs.) : i) Shop (12'x10')
    ii) Interiors
    iii) Equipments
    Deep freezer (400 kg)
    Weighing scale (5 kg)
    Portioning Machine 1/2 HP
    Microoven - 4 kg
    Snack cabinet
    Air conditioner
    PC with printer
    Sign boards
    Misc items
    iv) Deposits - Telephone,shop
     
    Total Project Cost
    Margin Money
    Bank Loan
     
     
    41
d:\Poultry project profiles\page29,30&41,42    
     
     
5. Economics :  
    Income - Sale of dressed chicken
    - Sale of snack items
     
    Expenditure - Electricity
    - Telephone
    - Repairs and
    Maintenance
    - Consumables
    - Salaries & Wages
     
6. Economic parameters : I II III
Capacity utilisation % 50 60 70
     
Gross Profit (Rs.lakhs)   0.735 1.178 1.620
     
7. Financial Ratios    
BCR : 1.29:1
     
NPW : Rs.3.743 lakh
     
IRR : 44%
     
DSCR : 1.90:1
     
8. Repayment period : 7 years with first year as grace period
     
9. Potential : All urban areas and around colleges
    are potential pockets
     
10. Licenses : For establishing a shop from
    local authority.
 

SCHEME FOR FINANCING ESTABLISHMENT OF CENTRAL GROWER UNIT CUM SATELLITE LAYER UNITS

1 Objectives: : To provide profitable self employment      
      opportunity to the landless labourers      
      Small farmers, uneducted unemployment      
      and educated unemployed people      
2 Modalities of project : Selection of beneficiaries   -should be needy
              -should be from the same locality
              -should have a plot of land for layer shed
              -should be willing to work and learn
    : Formation of Central grower unit   -All the beneficiaries are members
              -It may be a coop.Society
    : Services of Central Grower unit   -Arrange finance from banks
              -Help and guide them in construction of
              poultry sheds and installation of equipment
              and installation of equipment
3 Model Concept     :        
          Satellite layer unit      
            -Collection of eggs
            -Collection of cull birds
        Central Grower unit      
          -Rearing of Day old      
          chicks -Supply of pullets
          -Manufacturing Feed -Supply of Feed
          -Training of farmers -Providing Technical guidance
            and vaccination/medication
          - Marketing of eggs -Training of farmers
          birds      
          Satellite layer unit      
4 Project Component :            
  Central Grower unit     - Brooder and Grower sheds      
          Feed mill, office, quarters, poultry  
          and feed mill equipment, vehicle    
  Satellite layer units     - Layer sheds, cages,      
          purchase of growing pullets      
5 Unit size :   - Central Grower unit      
          To rear at least 4 batches of birds upto  
          18-20 weeks and supply to the satellite unit  
        - Satellite layer units:      
          The unit size may be 500-1000 birds  
          each and no. of such units may be around  
          50-100 in the area. If the number of  
          satellite layer units is 100 with 1000 birds each
          Central Grower unit should have-booder house
          and grower house of 25000 capacity each for
          each batch of birds      
6 Unit cost/Bank loan :     Varies with the type of system    
          and number of birds to be reared  
7 Margin Money :     As per norms      
8 Repayment period :     6-7 years with first year as grace period  
9 Implementation :     Maharashtra- potential exists in all the states  
 

SCHEME FOR FINANCING SHUTTLE COCK MANUFACTURING UNITS

1. Introduction

Poultry sector provides gainful employment and supplementary income to a large number of persons in the country besides being a rich source of nutrition (egg and meat). However, in recent times poultry industry has been hit by bird flu scare, which has led to a slump in the sector. Therefore, there is a need to explore activities for optimum utilisation of bird resources for remunerative returns from the activity. Though poultry offal are being used in pet foods and other items, its feather are generally discarded. One of the prominent use of feathers is in shuttle cock manufacture. World market for shuttle cock are based on duck feathers, however, lower end shuttle cock for outdoor purpose are still being manufactured from hen (layer) feathers.

2. Objective

Optimum utilisation of poultry (layer) feathers which are otherwise wasted and forward integration of poultry units with shuttle cock making micro enterprises.

3. Concept

This scheme has a good prospect in areas such as Jalandhar (Pb), Merrut (UP), Kolkatta (W. Bengal), Bangalore (Karnataka), Hyderabad (AP), where there is demand / market for sport goods and supply chain linkages are available. There are following three segment of entrepreneurs in shuttle cock business i) micro enterprises making low end shuttle cocks and directly marketing their products under their own brand ii) micro enterprises supplying shuttle cocks to wholesalers/ marketing houses which use their established brands iii) Large shuttle cock marketing houses out-sourcing their requirements from China and getting high end duck feather shuttle cocks manufactured themselves.

This model report has been prepared keeping in view the needs of micro enterprises. In a developed shuttle cock manufacturing cluster, a lot of division of labour takes place and even the small units out-source few of the processes involved in manufacture of shuttle cock. Processes such as threading of cock, boring of cork etc. are out-sourced from household units specially engaged in these jobs, to economise on production cost and time. Moreover, since marketing is the back bone of the industry, presence of a pool of traders for brand development, lifting the finished material and its supply to different parts of the country are a must. Therefore, this model is likely to be successful where developed clusters exist or where cluster approach is adopted and supply chain linkages are taken care of.

4. Borrowers

Entrepreneurs for this activity need to be actively involved with the manufacturing of shuttle cock and should understand the nitty grity of manufacturing/ trade. Large Shuttle cock trading houses can be a source for borrower identification based on their requirement for out sourcing the products.

5. Project component

5.1 Building/ workshed

The unit does not require much space. An area of about 200-250 sq ft will meet the requirements of the unit. For washing and sun drying of the feathers there should be provision for small area in the unit or its vicinity. Most of the units are presently being operated in households or in rented space. Hence rent for the workshed has been considered under the scheme.

5.2 Plant and machinery

The plant and machinery requirement for the unit is very small. The unit requires a cork boring machine and feather cutting and sizing machine. Both the machinery are locally available. Cork boring machine can bore 50 gross of corks per day. There is increasing trend to outsource the cork boring work since for small units the capacity utilisation of the machine is low. Thus the need for this machine will depend upon the availability of infrastructure and specific project plan. Feather cutting machine is operated by 2 labours and the output is sufficient for meeting the daily feather requirements.

5.3 Raw material:

5.3.1 Feathers

One shuttle cock requires 16 Hen feathers which are specifically collected from wing and tail. Most of the units are purchasing feathers from traders which are procuring them from AP, TN and Punjab. The price of feathers varies from Rs. 120 - 200/ kg. However, these feathers are sometimes mixed with broiler feathers which are unsuitable for cock manufactures. Thus there is incidence of 20 -30% wastage in a lot. For preparing international quality cocks, duck feathers are being used which are available at a cost of Rs. 450 for 1000 feathers. In these feathers the rejection rate is 10%. These shuttle cocks are primarily meant for national and international competitions and for indoor purposes.

5.3.2 Cork

Good quality cork are being imported from Spain and Portugal. Corks are now being synthetically manufactured to meet the requirements of low end shuttle cocks. These corks are now being available with holes. The cost of cork is Rs. 6.67/ dozen. Synthetic corks are available at a cost of Rs. 3.5/ dozen. Most of the manufacturing units prefer pre-bored corks to save on labour and time.

5.3.3 Miscellaneous items

Surf or other detergent, hydrogen peroxide and chemicals are being used in washing of the feathers. Fevicol is being used for sticking feathers to corks and Eurocol along with polish being applied to feather thread to provide strength. Thread is used for holding the feathers together. Tape are used to further strengthen the cork. All these miscellaneous items would cost around Rs. 45/ 30 doz.

6. Packing and labeling Material

Cylindrical cardboard boxes are used for packing the shuttle cocks. These type of boxes with metal cap are available in the market @ Rs. 3.0 per piece. Further for labels of different sizes and design to be fixed on the base of shuttle cock and on the cylindrical card board box , a cost of Rs. 2.75 is considered for working out the economics.

7. Marketing

There is no standard weight for low end shuttle cock manufactured in the area as these are generally used for outdoor purposes. The wholesale price of shuttle cock varies from Rs. 30- Rs 70/- depending upon the quality of material and finish of shuttle cock.

8. Economics:

The detailed unit cost and economics of the scheme is given in Annexure I. The total unit cost of the project is Rs. 90,000/-. A down payment of 10% is envisaged in the scheme . A rate of interest of 12% is considered under the project. The total repayment period is 4 years without any grace.

UNIT COST OF SHUTTLE COCK MANUFACTURING UNIT (30 dozen/day)  
Particulars Specifcations Unit cost Total Cost
Workshed admeasuring (15' x 15')     Own/Rent
Cost of cork boring machine fixed on table 1 5000 5000
Cost of feather cutting machine 1 1500 1500
Purchase of washing tube, and other   LS 500
Miscellaneous items      
Capitalisation of recurring expenditure 60 1435 86076
(details given below) days    
Total     93076
      (say Rs. 93000)
 
S.No Particulars Specification Unit cost Amount (Rs.)
I Recurring expenditure      
1 Cost of chicken feathers - 3kg Rs. 150/ kg 450
2 Cost of 30 dz corks (imported) 30 Dz Rs.6.67/Dz 200
3 Cost for cutting the feathers 30 Dz Rs. 2/Dz 60
4 Threading of feathers 30 Dz Rs. 1.25/Dz 38
5 Packing material 36 boxes Rs. 3/box 108
6 Labelling of shuttle cock & packing material 36 Boxes Rs. 2.75/box 99
7 Fevicol for 30 dz shuttles - 1 kg @ Rs. 45/kg 1.0 kg Rs. 45/kg 45
8 Eurocol polish for shuttle cock threads etc 250 gm/ 30 doz Rs. 140/kg 35
9 Misc. items like surf, Hyd. peroxide, nilowhite,   LS 50
  adhesive tape etc      
10 Labour costs 3 100 300
11 Lease rent     50
  Total     1435
         
II Income      
  Sale of 30 dz shuttle cork @ Rs.55/ dz     1650
         
III Gross surplus     215

 

Cash flow analysis
Captial cost 93000            
Recurring cost 344304 430380 430380 430380 430380 430380  
Total Costs 437304 430380 430380 430380 430380 430380  
               
Income 396000 495000 495000 495000 495000 495000  
Gross surplus 51696 64620 64620 64620 64620 64620  
DF 15% 0.870 0.756 0.658 0.572 0.497 0.432  
Cost at DF 15% 380264 325429 282982 246071 213975 186065 1634787
Benefit at Df 15% 344348 374291 325471 283018 246102 214002 1787232
Net Benefits -35917 48862 42489 36947 32128 27937  
NPW 152445.45            
BCR 1.15            
IRR > 100%            

 

Repayment
Loan (Rs.) 83700            
Rate of interest 12            
Year O/s at beg. O/s at end Gross Principal Interest Total Bal. with
  of year of year Surplus       farmer
I 83700 67896 51696 15804 10044 25848 25848
II 67896 43734 64620 24162 8148 32310 32310
III 43734 16672 64620 27062 5248 32310 32310
IV 16672 0 64620 16672 2001 18672 45948
 
 
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