Slno.

1. 2. 3. 4. 5. 6. 7. 8. 10. 11. 12. 13. 14. 15. 16.

Content
Overview of Foundry Industry An introduction to Sujay Enterprise Foundry Industry Process Facilities available with Sujay Enterprises Clients OF Sujay Enterprises Background of the Entrepreneur Entrepreneurial Competencies Milestones of Mr. Chandrashekhar Iti Project Formulation Financing of Enterprises Establishing the Enterprise Future plans of Sujay Enterprises Role of Entrepreneurship in Economic Development Recurring problems of Entrepreneurship Dairy Farming

Page no.
2 7 9 10 16 18 21 24 26 33 37 39

40 41 44

Study on Foundry Industry, Belgaum

Overview of Foundry Industry
The Indian Foundry Industry occupies a special place in shaping the country’s economy. India is currently among the 10 largest producers of ferrous and non-ferrous castings and has over 6500 foundries in the small, medium, and large scale sectors. And is the fifth largest producer in terms of total casting production in the world, after US, China, Russia, and Germany. Approximately 90% are in the small scale. India exports annually above Rs.700/- crores worth of castings to countries like USA, U.K., Canada, Germany etc.

Foundry Industry in figures

Production Grey Iron Steel Malleable ans non ferrous castings

castings castings SG Iron

3 millions tonnes 2.36 million 400 268 20 000 000 000

tonnes tonnes tonnes tonnes

Number of plants

5th producer in the world 5000 500 medium to large scale

(estimated)

Babasabpatilfreepptmba.com

2

Study on Foundry Industry, Belgaum

Modernisation:
Basic technologies have not undergone much change but the emphasis has changed. The world has become more environmentally conscious and technologies have to conform to more and more stringent environment norms. The U.S. foundry population has declined by about one-third over the last 20 years largely due to the cost of legislative compliance. This has given the Indian producers a good opportunity for export market. But then a reemergence in the developed world would be with cleaner technology. A study conducted by EXIM bank has shown that in the last 10 years the exports of castings from India have increased seven-fold. However, there is a still lot need to be done. Even with these improvements the export of castings from India amounted to only one percent of the world requirement. In the near future there will be ample scope for the Indian foundry Industry to forge strategic alliances with their counterparts in the developed countries which are on the verge of closure primarily due to three major reasons: waste disposal and highly stringent pollution control regulations, high manpower costs, and acute shortage of trained personnel to work in foundries. This is where Indian foundries can make their presence felt in the international market by approaching foreign foundries to source castings from India at more economical prices and thus enhance their market share. In order to do this, Indian foundries have to equip themselves with the latest technologies such as Automation, Casting Simulation etc. Indian foundry industries can not afford to ignore environmental implications which will also become stringent in terms of implementation of compliance. The industries also have to strive to adopt ecofriendly technologies.

With the Indian government taking the path of de-regulation, open economy & globalization, many new green field foundries were set up, with modern equipment like High pressure molding technology, automatic sand plant and latest in NDT like spectrometer, magnetic particle testing, ultrasonic & X-ray examination.

Babasabpatilfreepptmba.com

3

Study on Foundry Industry, Belgaum

Entry of many multinational units post 1992 particularly in automotive sector helped the shift from small scale single owner driven foundry to medium / large sector with professionals inducted even at departmental levels like molding, & methoding, melting, production etc. Assimilation of modern technology like simulation software, 3-D modeling of the drawing, use of computers in solidification simulation, has brought the Industry at par with the best in the world. Due to the intrinsic better understanding of the drawings, modern equipment, lower labor costs etc, has made the Indian Casting Industry globally competitive. Competitiveness of Indian Foundries After the initial phase of increases in installed capacity, due to domestic recession which lasted almost till 2001-2002, came the period of shake out, with weaker units either folding up or getting merged with the stronger players. Now, since the domestic demand has picked up since last 6 months, the better units are now working almost to 85-90% of installed capacity. This lean period forced the better foundries to downsize, and increase the productivity, to fight the diminishing margins. This has made those who survived a fitter & stronger foundry highly competitive in the world market. Unlike the Chinese growth in export markets (which in volume / tonnage terms is far greater than the Indian one), Indian export growth has come in high end cast products, higher technology & complicated shaped castings, serving the Industries like auto components, pump & valve Industry, mining & minerals & earthmoving machinery etc. India has perhaps the largest pool of engineering manpower, with 95% able to speak & understand English, offshore product development activity is possible. With about 4-5 hours of time zone difference actually helps in working virtually in real-time. With very low machining costs, (and matching facilities like heat treatment, plating and painting operations) India is fast emerging as a hub for purchase of ready to use components (instead of mere casting) or at least a semi-finished component, with only finishing operations done in Europe. Babasabpatilfreepptmba.com 4

Study on Foundry Industry, Belgaum

Additional area where Indian foundry Industry has made a mark is in the area of value engineering, and cost reduction, like conversion from Steel casting to ductile SG Iron casting, from Malleable iron casting to ductile iron casting, from forging to casting etc. In the last few years, large MNCs like GM, Ford, DaimlerCrysler GE Cummins, Caterpillar etc have opened their international sourcing & strategic buying offices in India to take the advantage of lower cost, good quality castings from India. With the entry of multiple auto companies since then, the Industry has modernized itself, with forging press as the main equipment. Steam hammers have given way to pneumatic & hydraulic powered hammers, allowing closer tolerance control in hot forged condition, reducing the cut weight of the job, and reducing the component cost. This was supplemented through the latest in tooling technology through Japanese collaborations / outright purchase of technology, making Indian forgings at par in quality with the latest European technology. This was also supplemented through establishment of cold forging and warm forging units, for very close dimensional control, catering to a niche area of precision forging used mainly in automotive field. .

Babasabpatilfreepptmba.com

5

Study on Foundry Industry, Belgaum

An

Introduction

Sujay Enterprises is involved for the manufacturing and supplying of castings of Cast and S. G. Iron to automobile and allied industries The company was incorporated in the year 1982 by Mr.Chandrashekhar Iti, The company exists for 23 years and has full infrastructure to manufacture Graded C.I. Casting & S.G (Internationally known as Ductile Iron) Iron Casting along with satisfactory machining setup and have latest testing facilities in laboratory. Today the company is engaged in the manufacturing of all grades of Gray Iron Casting & S.G. Iron Casting to the entire satisfaction of their valued customers. The company is equipped with all the latest equipments and such highly qualified technical personnel whose performance are backed by their years of rich experience.

Vision Statement

To be the foundry of choice within the industry. Be efficient, therefore profitable for our customers & meet or exceed all their expectations, so as to foster an atmosphere of employee pride and mutual respect
Mission Statement

Our goal is to meet our customer's requirements by delivering high quality, competitively priced products, on time with excellent service so as to give them a superior part for the best value.
Statement of Values
• • •

Concern for the well-being and security of employees. Produce the highest quality product and provide the best customer service. Continue our tradition of strong customer and supplier relationships.

Babasabpatilfreepptmba.com

6

Study on Foundry Industry, Belgaum

Maintain a strong financial base and continue to reinvest profits in our Company.

Sujay Enterprises always satisfies their customers by supplying quality castings.
• • • •

Good Surface Finish Accurate shape and dimensional control Freedom from defects Metallurgical control (Hardness, micro structure)

Group Companies 1. Associated Castings & Components 2. Airotek Pollu Control Projects & Equipments. 3. Airotek Private Limited 4. Airo Sales & Services 5. S-tec Systems (I) Pvt. Ltd. 6. Refricon Magic Systems Range of Casting Products Sujay Enterprises is serving a broad industrial base with their casting products, which are the part of a wide range of most of the well-established engineering brands. We manufacture components for Hydraulic mechanism for tractors; Water pump and oil pump body for trucks; Clutches & pressure plates, brake drum insert ring and covers for two wheelers; Cylinder head piston and valve plate for compressors; Castings components for weighing scales, etc Castings are produced to IS, BS, DIN, AFNOR, EN, ASTM, UNI and other international standards. The castings is offered in a weight range of 50 grams to 90 kilograms per piece and is supplied in machined, semi machined and as cast condition with surface treatment as per customer's need.

Babasabpatilfreepptmba.com

7

Study on Foundry Industry, Belgaum

Foundry Production Process

Babasabpatilfreepptmba.com

8

Study on Foundry Industry, Belgaum

Facilities available with Sujay Enterprises
Melting Shop
• • •

Cupola furnace 36'' diameter for duplexing Pouring Trolley with laddle Electric hoist, 2 ton capacity Moulding Shop

• • • • •

Moulding Machines Sand Mullers & Mixture Sand Grinding Machines Sand Testing Equipment Compressor Set Core Shop

• • • •

Shell Moulding Machine Shell Core Shooter Electric Core Room Compressor Set

Grey Cast Iron Products: Grey Cast Iron Castings & Components are manufactured up to a tensile strength of 300 N/mm2 Housings Chain Sprockets Adaptors Trolley Wheels Brake Drums. Brackets Impellors Water Pump & Oil Pump Bodies Roller Wheels Manual & Hydraulic Jacks Babasabpatilfreepptmba.com 9

Study on Foundry Industry, Belgaum

Foundry Division: The foundry has a capacity of producing 4000 MT of castings annually. In a molding area of 3100 meters2 (33790 feet2), molding is done on Jolt & Squeeze machines & manually. Mould box size is up to 600 x 600 mm. Intricate inner profiles of casting are managed on Hot Box shell cores. One 32 inches diameter cupola is used for melting the metal. Sand regeneration is through a semiautomatic process involving sand handling up to molding machines, knock out, sieving, magnetic separation and then sand mixing for green sand molding.The chemistry, microstructure and temperature of the melt are controlled to desired level by the use of instant Carbon Silicon Analyzer .The product quality is systematically controlled right from Raw Material input stage to the final finished product stage. Machining Division: Initially castings are pre machined on conventional machine tools. Finish turning operations for a maximum turning dia of 350 mm are done on Lathe Machines to achieve higher dimensional accuracies up to 20 microns and surface finish up to 1.6  Ra.Complete geometrical parameters are controlled to the desired specifications. Milling, boring, Multiple drilling, reaming and tapping operations are done on vertical machining center with a capacity 760 x 510 x 510 mm. Broaching and Honing operations are done on conventional machine tools.

Babasabpatilfreepptmba.com

10

Study on Foundry Industry, Belgaum Testing Facilities:

BRINELL HARDNESS TESTER Beginning with drawing study, methoding on computer software, sand testing for cores and moulds, chemistry and microstructure control of melt through online analyzer, finished products are checked as per laid down systems and procedures for hardness, microstructure, tensile, elongation and compressive strength.

MICROSTRUCTURE ANALYSIS & UNIVERSAL TESTING MACHINE Chemical & metallurgical analysis is further carried out to ensure that the product quality conforms to the customer's requirement. CAD/CAM facilities are used to manufacture components requiring reverse engineering.

Babasabpatilfreepptmba.com

11

Study on Foundry Industry, Belgaum ULTRASONIC THICKNESS TESTING

Fully equipped in house Standards Room with complete methodology and qualified personnel are available to ensure high integrity of the quality delivery systems and procedures. Calibration & Validation Systems are in place for various instruments, gauges and jigs & Fixtures. Foundry Division: Core Making

Moulding Conveyor &Knock Out System

Babasabpatilfreepptmba.com

12

Study on Foundry Industry, Belgaum

Machining Division: -

Babasabpatilfreepptmba.com

13

Study on Foundry Industry, Belgaum

Housings

Brackets

Impellors

Adaptors

Chain Sprockets

Water Pump Bodies

Babasabpatilfreepptmba.com

14

Study on Foundry Industry, Belgaum

SATISFIED REPUTED CLIENTS OF SUJAY ENTERPRISES

Babasabpatilfreepptmba.com

15

Study on Foundry Industry, Belgaum

INTRODUCTION

Definition of an Entrepreneur: Entrepreneur is an individual who starts his/her own business. He a person who assumes the risk to start a business with the idea of making a profit. Entrepreneur is one who recognizes opportunities and organizes resources to take advantage of the opportunity. Entrepreneurship: Entrepreneurship is a process through which individuals and groups pursue opportunity, leverage resources, and initiate change to create value. Thus, an entrepreneur is one who creates and manages change by pursuing opportunity, acting with passion for a purpose, living proactively, and leveraging resources to create value.

Babasabpatilfreepptmba.com

16

Study on Foundry Industry, Belgaum

Background of the Entrepreneur
Mr.Chandrashekhar Iti born on 25th May 1953 in a village called Biranagaddi in Gokak Taluk is one among the successful entrepreneurs in Belgaum District. He completed his primary education in Biranagaddi and his graduation (B.A) in Gokak. He lost at a very young age and thus had no support to go for further studies. He completed his graduation in the year 1974 and started looking for job. On 12th December 1974, he joined DURGA AUTO SERVICES at Belgaum as a petrol boy under the management of Mr.Parulekar (Proprietor). He was paid Rs.100 per month. He went under quality service training for a week and used to serve the customers to the best. One fine day, a gentleman Mr.Ashok Kamat drove in his car to the petrol pump. The hard work and good service of Mr. Chandrashekhar Iti inspired him, and he enquired about his qualification. After knowing that Mr.Chandrashekhar Iti is a BA graduate, he immediately offered him an administrative job in his factory, ALLIED FOUNDARIES.Thus, after completing one and a half years in DURGA AUTO SERVICES, he joined ALLIED FOUNDARIES and was earning Rs. 125 per month. Since, he was earning Rs. 125, it was not sufficient for his livelihood. So, he started a part time job as a paperboy. He delivered newspapers and Milk door to door early in the morning and rest of the day worked in ALLIED FOUNDARIES. Later, in 1976-1977, he went to Dhamne ,a small village about 12kms from Belgaum.He stayed in the house of Mr.Yellappa Balikundri and taught tuitions to the children of Balikundri family and traveled to Belgaum daily to work in the foundry (ALLIED FOUNDARIES). In the year 1978, he got married to Mrs.Vidya Iti.She was a teacher by profession and both of them started earning to live their life. Babasabpatilfreepptmba.com 17

Study on Foundry Industry, Belgaum In the year 1982, he decided to start his own enterprise with full support and cooperation of his wife. He took loan of Rs.16, 000 from K.S.F.C and started his own business with a single lathe machine in a small rented shed .He worked for ALLIED FOUNDARIES for the whole day and worked alone in his enterprise from evening to late mid night. Thus, he day and night with lost of dedication and determination. In the year 1984, there was government self employment scheme which provided loan up to Rs.25, 000 with low rate of interest for the people who desire to start their own enterprises or to become entrepreneurs. With this amount, he installed another lathe machine and a drilling machine. This was the first step of his business expansion. In the year 1985,he went to Pune in search for his potential customers for his business. He met a generous person Mr.T.P.Vartak in Pune who offered him lift in his vehicle. He asked Mr.Chandrashekhar Iti about his profession and realized that Mr. Chandrashekhar Iti could be a good supplier of raw materials .He immediately took Mr.Chandrashekhar Iti to his factory named LAKEZONE.His company was in need of winding machine spares and thus, provided a good opportunity to Mr.Chandrashekhar Iti by placing a bulk order of winding machine spares within eight days of time. Mr.Chandrashekhar Iti worked day and night and supplied the required quantity & quality winding machine spares to Mr.T.P.Vartak within eight days. Mr.T.P.Vartak was inspired by the work of Mr. Chandrashekhar Iti and placed regular orders, which helped Mr. Chandrashekhar Iti’s business, run in full swing. In the year 1987, due to change in government policies LAKEZONE Company had to windup. Thus, Sujay Enterprise lost potential customer and the payments were held for a year. This year it was a great loss and completely a slack season for Mr. Chandrashekhar Iti. In the year 1988, there was a flow of bulk orders from many companies such as Kirloskar Oil Engines, Kirloskar Filters and Star Volkman Company etc.This year was again a boom to Sujay Enterprises.

Babasabpatilfreepptmba.com

18

Study on Foundry Industry, Belgaum

In the year 1991, Mr. Chandrashekhar Iti went for further expansion of Sujay Enterprises by installing two more lathe machines, two more drilling machines and a milling machine. In the year 1994, he set up his own foundry by taking a loan of Rs.3, 84,000 which was the highest loan he had ever made. Thus, in the subsequent years, Sujay Enterprises is providing quality and quantity assurance its customers. Mr. Chandrashekhar Iti cleared all his loans and debts year after year by working hard with complete dedication to his work and determination to achieve goals.

Babasabpatilfreepptmba.com

19

Study on Foundry Industry, Belgaum

Entrepreneurial Competencies
The underlying characteristics possessed by an entrepreneur, which result in superior performance, are called entrepreneurial competencies. Competencies possessed by Mr. Chandrashekhar Iti The competencies listed below are identified during the course of study through interaction with the entrepreneur. These competencies are explained with real facts in the life of Mr. Chandrashekhar Iti as examples. 1. Initiative Mr. Chandrashekhar Iti himself took his decision to launch his enterprise in the year 1982 with a single lathe machine. 2. Seeking and Acting on Opportunities He always seeks for opportunities and acts accordingly as it happened in the year 1984 when the government provided an opportunity to expand his enterprise by installing another lathe machine

3. Persistence Mr. Chandrashekhar Iti was persistent as it is seen in the year 1987 ,his business was completely shattered ,when he lost a major contract with a Pune based LAKEZONE Company and his payments were held for more than a year. He never lost hopes after this tragedy, instead he was confident enough to recover his losses and he proved it within the next two years when he got orders from many reputed companies. Babasabpatilfreepptmba.com 20

Study on Foundry Industry, Belgaum 4. Information Seeker Mr. Chandrashekhar Iti is a good information seeker. Though he is an arts graduate, he has a lot of knowledge and information about machinery. It was when he was working for ALLIED FOUNDARIES as a supervisor he collected every bit of information about the business, machinery and even learnt different skills.Mr.Ashok Kamat ,Director ALLIED FOUNDARIES has been a potential source of information to Mr. Chandrashekhar Iti. 5. Quality Conscious Mr. Chandrashekhar Iti is very quality conscious .He never compromises quality with price. Because of his quality products and service, reputed companies like Kirloskar Oil Engines, Kirloskar Filters, LAKEZONE Equipments, Nexus Engines, Airotech, etc. are his prominent customers. 6. Commitment towards Work Mr. Chandrashekhar Iti does every sacrifice to get the task completed. It was in the year 1985 when Mr. T.P.Vartak, Proprietor, LAKEZONE Company of Pune placed an order to supply winding machine spares within eight days. Mr. Chandrashekhar Iti himself along with his employees worked day and night, and supplied the winding machine spares to Mr. T.P.Vartak within eight days. 7. Efficiency Oriented Mr. Chandrashekhar Iti makes always-tenacious efforts to get the task completed within minimum cost and time. He and his son (Mr.Sujay Iti) work along with their employees to bring out the required efficiency. 8. Good Planner Mr. Chandrashekhar formulates realistic and proper plans, and then executes the plans rigorously to accomplish the task. Whenever he receives certain orders ,he estimates the cost of production ,time required, combination of raw materials available ,and then goes in for manufacturing the ordered quantity. Babasabpatilfreepptmba.com 21

Study on Foundry Industry, Belgaum

9. Problem Solver Mr. Chandrashekhar Iti always tries to find out ways and means to tide over the difficulties. Whenever he faces problems he consults his role model, Mr.Ashok Kamat, he interacts with his employees, he consults other experts and applies best solution to his problems. 10. Self Confidence Mr. Chandrashekhar Iti is a strong believer in his strength and abilities. Before he used to purchase castings from others, and then manufacture the products. In the year 1994,with full confidence, he installed his own foundry and produced his own castings instead of purchasing from outsiders.

Babasabpatilfreepptmba.com

22

Study on Foundry Industry, Belgaum

Milestones of Mr. Chandrashekhar Iti
1974 - Completed his graduation as Bachelor of Arts from Karnatak University, Dharwad. 1974 – Was employed as a petrol boy in DURGA AUTO SERVICES, Belgaum. 1978 - He was married to Mrs.Vidya Chandrashekhar Iti 1982 – Established his own enterprise with a lathe machine. 1984 – First step of business expansion by installing two more lathe machines, two drilling machines. 1985 – Obtained a major supplying contract with LAKEZONE Company of Pune. 1991 - Further expansion of his enterprise by installing two more lathe machines, two more drilling machines and a milling machine. 1994 – He set up his own foundry.

Babasabpatilfreepptmba.com

23

Study on Foundry Industry, Belgaum

How to Identify & Select Goods Business Opportunities
Factors to be considered while identifying and selecting a business opportunity. • • • • • • • • Educational Qualification. Work experiences in and/or exposure to any industry or business. Financial resources. Technical skills. Preferences for particular industrial sector or sub-sector. Expectations about returns from the business. Reasons for setting up an enterprise. Attitude to a particular industry.

How Mr Chandrashekar identified & selected this particulars business Mr Chandrashekar worked for Allied Foundries for more than five years. He had enough knowledge about the complete in and out of the business, he had learnt technical skills, and he had a lot of support from his co-workers who helped him start his enterprise. Mr Chandrashekar follows the footsteps od Mr Ashok Kamat Prop. Allied Foundries as his role model. Mr Ashok Kamat helped Mr Chandrashekar in building contacts with customers and suppliers of raw material. Thus it is the work experience in Allied foundaries Technical skills , contact in industry and financial sector and the sincere help from his co-workes and Mr Ashok Kamat made Mr Chandrashekar to identify & select this particular business.

Babasabpatilfreepptmba.com

24

Study on Foundry Industry, Belgaum

Project Formulation
The first step of an entrepreneur to establish an enterprise is to formulate a project report. A report or business plan is a written statement of what an entrepreneur proposes to take up. It is a kind of guide frost or course of action what the entrepreneur hopes to achieve in his business and how’s he going to achieve. Contents of Project Report. • • • • • • • • • • • • • • • General Information on product profile and product details. Promoter : His/her Qualification, work experience, project related experience. Location of the project, lease or free hold , location advantage. Land & Building. Plant & Machinery details . Description of production process. Utilities & sources of utilities like water, power, steam etc. Transport & Communication. Raw Material details. Man power Requirements. Market Analysis. Requirements of working capital. Requirements of funds. B.E.P. Schedule of Implementation.

Babasabpatilfreepptmba.com

25

Study on Foundry Industry, Belgaum

Preliminary Project Report Perfoma.
1.0 General Name of Entreprenuer____________________________________________ Date of Birth________________ Age ________ Project ________________________________________________________ Location _______________________________________________________ Type of organization______________________________________________ Name of firm ___________________________________________________ Address ________________________________________________________ _______________________________________________________________

1.1

Educational Qualification: Qualification SSLC,or below Degree/Diploma Institute Major Sub. Yr of passing

1.2 Special Traning Training in Institute Duration Achievements

1.3 Work Experiences

Babasabpatilfreepptmba.com

26

Study on Foundry Industry, Belgaum Organisation Position Nature of work Duration

2.0 Details of Proposal Project ( Manufacturing/servicing ) 2.1 Machinery/ Equipment S.no 1. 2. 3. Total 2.2 Production Programme S.no 1. 2. 3. Total Item/Product Total Qty per yr Sale Revenue per Capacity year Utilization Description Qty required price Total Value Name & Address of suppliers

2.3 Raw Materials S.no 1. 2. 3. Babasabpatilfreepptmba.com 27 Items Total Quantity Annual Requirement Value (rs) Source

Study on Foundry Industry, Belgaum Total 2.4 Utilities S.no 1. 2. 3. 4. Particulars Electricity Water Coal/Oil Any other Total Annual Requirement Total Exp. (Rs) Annual Remarks

2.5 Man Power S.no 1. 2. 3. 4. Particulars Skilled Semiskilled Unskilled Office Staff Total No Total wages & Remarks

salary (rs/yr)

3.0 Cost of the Project 3.1 Fixed Capital S.no 1. 2. 3. Items Land & Building Machinery/Equipment Furniture & Fixtures Total Value

3.2 Working Capital S.no 1. Items Raw material stock Duration Quality Value ( Rs ) 28

Babasabpatilfreepptmba.com

Study on Foundry Industry, Belgaum 2. 3. 4. Semi-finished goods stock Finished goods stock One month production exp. Total

3.3 Total Cost of Project S.no 1. 2. 3. Particulars Fixed capital Working Capital Preliminary & pre-operative exp. Total Value

3.4 Means of Finance S.no 1. 2. 3. 4. Particulars Term loan Working capital loan Own Investment Subsidy Total Value ( Rs ) Value ( Rs )

3.5 Project Profitability Analysis S.no 1. 2. 3. 4. 5. 6. 7. 8. Description Sales revenue Manufacturing Expenses (2.3+2.4+2.5) Selling & Distribution exp. Administrative exp. Interest Depreciation Gross Profit Income Tax Value

Babasabpatilfreepptmba.com

29

Study on Foundry Industry, Belgaum 9. Net profit Total Supplementary Details Do you own house / property, etc Own Insurances policy Any Interest in other firms You belong to SC/ST/ OBC/General Present Monthiy Income ( Rs ) 5.0 References S.no Name Address Occupation

4.0

4.1

4.2

4.3

4.4

4.5

Date Place Signature

Babasabpatilfreepptmba.com

30

Study on Foundry Industry, Belgaum

Financing of Enterprises
Having prepared the project report, the time comes when the entrepreneur needs to decide on the need for and sources of finance as per his/her prosecutions made in the project report. Finance is one of the important prerequisites to start an enterprise. In fact, it is the availability of finance that facilitates an entrepreneur to bring together land, labour, machinery and raw material to combine them to produce goods. The various sources from which an enterprise can raise to required funds could broadly be classified in to two sources these are: 1. Internal Sources. 2. External Sources. 1. Internal Sources Internal sources of funds include the following: Own savings and investments Personal loans from provident fund (pf) / Life Insurance Corporation (LIC) / Co-operative Bank etc. Personal Borrowings from relatives and friends. Money raised through mortgage of personal assets like shares, land, buildings etc. Profit earned or transferred from existing business/ Investment or trade.

Babasabpatilfreepptmba.com

31

Study on Foundry Industry, Belgaum

2. External Sources External sources of funds include the following: Terms loan / Long-term loan. Short-term loan. Plant Leasing Hire purchase Working capital loan.

Sources from which Mr. Chandrashekar raised the required funds to establish his enterprise In the year 1982 when Mr. Chandrashekar established his enterprise with a single leath machine, he had personal savings of Rs. 4,000/- and obtained loan from KSFC of Rs. 16,000/-.

Babasabpatilfreepptmba.com

32

Study on Foundry Industry, Belgaum

Problems faced by Mr. Chandrashekar to raise funds for his enterprise
In the year 1982 Mr. Chandrashekar had a personal savings of Rs. 4,000/- only. So he had to borrow amount of Rs. 16,000/- from others sources. He applied for loan at KSFC but could not get the loan since loan was provided to people who were Government employees or income tax payer or one who had a guarantee of a well-known person. Mr. Chandrashekar was neither a Government employee nor an income tax payer nor he had any person for guarantee. In such a harsh position he approached his friend Mr. Daulat Kangralkar to be guarantee. Mr. Daulat Kangralkar was confident on Mr. Chandrashekar’s ability to repay the loan and immediately helped Mr. Chandrashekar to avail the loan from KSFC. Mr. Chandrashekar made proper use of the funds establish his enterprise and repay the loan within the specified time to KSFC.

Babasabpatilfreepptmba.com

33

Study on Foundry Industry, Belgaum

Legal Formalities

Before an entrepreneur establishes his enterprise, he has to undergo certain legal formality as such. An entrepreneur should avail corporation license from Municipal Corporation. An entrepreneur should avail provisional certificate from District Industrial Center (DIC). An entrepreneur should apply for electricity sanction from KPTCL. An entrepreneur should go in for sales tax registration. An entrepreneur should have ‘No objection certificate’ (NOC) from the pollution

control board.

Babasabpatilfreepptmba.com

34

Study on Foundry Industry, Belgaum

Establishing the Enterprise
An entrepreneur should consider the following important steps in establishing an enterprise. 1. Select the right location for the enterprise. An entrepreneur before selecting a location for the project one must weigh its advantages and disadvantages in relation to the project. By doing so one can avoid future problems. 2. Selection the right infrastructure. Entrepreneurs need appropriate and adequate infrastructure facilities to run their enterprises smoothly. These include land, building, utilities like power and water, transportation, communication facilities, local taxes, zoning restrictions etc. 3. Buying Machinery. For purchasing machinery certain guidelines should be followed like analyzing the specifications of machinery (technical specifications), approach only established manufacturers whose brand names have a reputation in the market, go through various option of machinery minutely, including technical specifications details of taxes, cost of transport, forwarding, installation, etc., and even check the resale value of the machinery. 4. Sources & Evaluation of raw materials. An entrepreneur should identify all types of sources of raw materials, select the best raw material suppliers by evaluating the price discounts, duality, transportation costs, time of delivery, mode of payments, credit terms etc. Babasabpatilfreepptmba.com 35

Study on Foundry Industry, Belgaum

5. Recruitment, selection & training of personnel. There is a growing realization of the urgent necessity of specialized manpower stills for industry and that success or failure of a business firm is largely dependence upon its human resources, which constitute one of its most important aspects. Hence, proper attention has to be given to manpower planning recruitment, selection and training by an entrepreneur. 6. Marketing Management. The entrepreneur reaches to the stage when production has to start. Before any produce is offered for sale to market, several decisions need to be taken in regard to its marketing for example the price of the product has to be determined, the methods of marketing has to be identified and the channels of distribution have to be worked out. Marketing encompasses different activities like research, planning, branding, pricing, distribution, selling, packing, merchandizing, warehousing, after sales service, sales promotion, advertising, credit policy etc.

Babasabpatilfreepptmba.com

36

Study on Foundry Industry, Belgaum

Future plans of Sujay Enterprises

Mr. Chandrashekar has future plans for his enterprises and as well for his business diversification. Mr. Chandrashekar is planning to start automobile casting and shell moulding casting due to existing demand. He is facing certain technical difficulties to implement Automobile & shell moulding casting and he is working different strategies to over come these technical difficulties. Mr. Chandrashekar has plans to diversify in to plantation and milk dairy in the coming years. He has already owned a piece of land for plantation and even has a preliminary knowledge of milk dairy since he keeps himself busy with his work he has not been able to concentrate much on diversification, but sooner or later Mr. Chandrashekar will start his own plantation & a milk dairy.

Babasabpatilfreepptmba.com

37

Study on Foundry Industry, Belgaum

Role of Entrepreneurship in Economic Development
1. Entrepreneurship promotes capital formation by mobilizing the idle savings of the public. 2. It provides immediate large-scale employment. Thus, it helps reduce the unemployment problem in the country. 3. It promotes balanced regional development. 4. It helps reduce the concentration of economic power. 5. It stimulates the equitable redistribution of wealth, income and even political power in the interest of the country. 6. It encourages effective resource mobilization of capital and skill, which might otherwise remain unutilized. 7. It also induces backward and forward linkages, which stimulate the process of economic development in the country. 8. Last but not the least, it also promotes country’s export trade i.e. an important ingredient to economic development.

Babasabpatilfreepptmba.com

38

Study on Foundry Industry, Belgaum

Recurring problems of Entrepreneurship
1. Today’s entrepreneurs are falling short of trained and skilled laborers. Entrepreneurs are even facing a lot of labour turnover because of competitor policies. 2. Frequent power failure is hampering the smooth running of the business. 3. Financial institutes don’t provide immediate loans to meet emergencies. 4. Large-scale industries are dominating over small-scale industries run by entrepreneurs. 5. There are no technical training centers for unskilled entrepreneurs. 6. There is no parental industry near by Belgaum city, thus Entrepreneurs running ancillary industries are dependent on the parental industries based in Pune bearing a lot of transportation costs. 7. Pollution control boards often harass entrepreneurs running small-scale industries. 8. Entrepreneurs find it hard to obtain a corporation license, sales tax registration, building permissions, FWM and KPTCL permissions, etc due to severe corruption. 9. Small-scale units particularly in Belgaum have been completely neglected by the Government due to border disputes between Karnataka and Maharashtra.

Babasabpatilfreepptmba.com

39

Study on Foundry Industry, Belgaum

Charms of being an Entrepreneur
1. An Entrepreneur is an independent being. Entrepreneurship provides an opportunity for self-expression and the realization of one’s passion for doing something new and different. 2. There are numerous opportunities for self-development. 3. An Entrepreneur can make his/her own decisions. 4. Monetary rewards can be more commensurate with ones capacity and capabilities. 5. An Entrepreneur with generates employment for others. 6. An Entrepreneur fulfills and realizes goals both individual as well as that of the society.

Babasabpatilfreepptmba.com

40

Study on Foundry Industry, Belgaum

Tips on being a successful Entrepreneur
1. Do not start an Enterprise without acquiring all the required knowledge about it. 2. Do not expect early and easy returns from your enterprise. 3. Be prepared for delegation whenever needed 4. Take calculated and moderate risks in the start. 5. Be a systematic planner. 6. Manage time effectively for maximum utilization. 7. Do not avoid problems anticipate them and try to solve them. 8. Be cost and quality conscious. 9. Upgrade continuously about your competitors. 10. Be assertive, direct and honest. Have commitment to work. 11. Do not hesitate to consult experts when in need. 12. Take decisions after evaluating and weighing all the implications.

Babasabpatilfreepptmba.com

41

Study on Foundry Industry, Belgaum DAIRY FARMING MILK IS HEALTH – HEALTH IS WEALTH About 70% of India's population is living in villages and majority of them are engaged in agriculture and allied activities. With the green revolution in early 70s, the country became surplus in food grain production. Northern belt of India comprising of Punjab, Haryana, U.P. and Rajasthan has immensely benefited by the green revolution. However, due to excessive use of fertilizers, insecticides, pesticides and over exploitation of ground water resources, per acre productivity is coming down every year. As a result, crop farming is no more economical. Therefore, in the present circumstances, it has become imperative to find out alternative avenues to boost the net income of farmers/villagers. Dairying plays a dynamic role in India's agro based economy. Our country's Dairy Industry is one of the fastest expanding in the world. Ten years ago only 5% of the milk produced came into the dairies. Today, it is 10%, and this figure will keep increasing. Today India ranks second only to the US in terms of milk production and it is expected that at the present rate of growth, it will soon overtake the US. According to a recent report prepared by the Ministry of Agriculture, the dairy industry has the potential to offer about 4.2 crore jobs a year. Today there are barely 50,000 - 60,000 trained professionals in this field. Given the proper thrust, dairying could in the years ahead, become one of the largest business sectors of the economy, even overtaking the industrial sector. Why do Dairy Farming? Dairying is an important source of subsidiary income to small/marginal farmers and agricultural labourers. The manure from animals provides a good source of organic matter for improving soil fertility and crop yields. The gober gas from the dung is used as fuel for domestic purposes as also for running engines for drawing water from well. The surplus fodder and agricultural by-products are gainfully utilized for feeding the animals. Almost all-draught power for farm operations and transportation is supplied by bullocks. Since agriculture is mostly seasonal, there is a possibility of finding employment throughout the year for many persons through dairy farming. Thus, dairy also provides employment throughout the year. The main beneficiaries of dairy programmes are small/marginal farmers and landless labourers. A farmer can earn a gross surplus of about Rs. Babasabpatilfreepptmba.com 42

Study on Foundry Industry, Belgaum 12,000 per year from a unit consisting of 2 milking buffaloes. The capital investment required for purchase of 2 buffaloes is Rs. 18,223/-. Even after paying a sum of Rs. 4294/- per annum towards repayment of the loan and interest the farmer can earn a net surplus of Rs. 6000 - 9000/approximately per year. Even more profits can be earned depending upon the breed of animal, managerial skills and marketing potential. According to World Bank estimates about 75 per cent of India's 940 million people are in 5.87 million villages, cultivating over 145 million hectares of cropland. Average farm size is about 1.66 hectares. Among 70 million rural households, 42 per cent operate up to 2 hectares and 37 per cent are landless households. These landless and small farmers have in their possession 53 per cent of the animals and produce 51 per cent of the milk. Thus, small/marginal farmers and land less agricultural labourers play a very important role in milk production of the country. Dairy farming can also be taken up as a main occupation around big urban centers where the demand for milk is high. Scope for Dairy Farming and its National Importance. The total milk production in the country for the year 1996-97 was estimated at 68.6 million metric tonnes. At this production, the per capita availability was to be 201 grams per day against the minimum requirement of 250 grams per day as recommended by ICMR. Thus, there is a tremendous scope/potential for increasing the milk production. The population of breeding cows and buffaloes in milk over 3 years of age was 62.6 million and 42.4 million, respectively (1992 census) Central and State Governments are giving considerable financial assistance for creating infrastructure facilities for milk production. The eighth plan outlay on Animal Husbandry and Dairying was Rs. 1300 crores. During the VIII plan (92-93 to 96-97) average growth of 3.7% p.a. was envisaged in milk production.

Market size and opportunities Babasabpatilfreepptmba.com 43

Study on Foundry Industry, Belgaum

Market size for milk (sold in loose/ packaged form) is estimated to be 36mn MT valued at Rs. 470 bn. The market is currently growing at round 4% p.a. in volume terms. The milk surplus slates in India are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashira, Andhra Pradesh, Karnataka and Tamil Nadu. The manufacturing of milk products is concentrated in these milk surplus States, The top 6 stales viz. Uttar Pradesh, Punjab, Madhya Pradesh, Rajasthan, Tamil Nadu and Gujarat together account for 58% of national production. About 75% of milk is consumed at the household level which is not a part of commercial dairy industry. Loose milk has a larger market in India as it is perceived to be fresh by most consumers. In reality, however, ii poses a higher risk of adulteration and contamination. Over the past 35 years, dairy farming has grown from this largely unorganized - if complex - activity, into a vast organized industry, that encompasses not only increased production of milk and milk products, but also the breeding of higher yielding cattle, and the scientific rearing of cattle and production of cattle feeds. This has proportionately increased the demand for trained manpower in this sector. The liberalization of the Indian economy has created a rethinking on public policy strategies regarding food security and food self-sufficiency. It would appear that a rapidly modernizing and internationalizing India would direct its productive resources into areas where it has greater competitive and comparative advantages. There is evidence that these policy changes are already underway. The dairy industry has been deregulated and this has resulted in greater private sector participation. It seems inevitable that further reduction of barriers to market entry would ensue. Therefore, India seems 10 offer excellent medium-term opportunities for international dairy marketers. If the advertisements are to be believed and it really takes one glass of milk to produce one slice of cheese, one can only imagine how many glasses of milk are needed, not only to provide the thousands of slices of cheese that are being readily gobbled up by India's yuppy children, but also for regular consumption and alt the other milk derived goodies. The demand for milk is tremendous, and is growing not only in cities but also in small towns and rural areas.

Dairy farming is a safe business for the following reasons:

Babasabpatilfreepptmba.com

44

Study on Foundry Industry, Belgaum

It is eco-friendly and does not cause environmental pollution as compared to other industries

• • • • • •

Requirement of skilled labour is relatively. Dairy product market is active round the year. Minimum investment on inventory. (No need to stock raw materials in huge quantities.) Entire establishment can be shifted to a new location (if need arises c e fire, floods etc.) One can insure animals. Less energy requirement. Biogas plant fed with cow dung can supply maximum energy to meet day to day requirement of farms. Decomposed slurry of such plant can also be effectively used as organic manure.

How to start a dairy farming unit

One needs to decide first on the aims and objective of the farm. Every year there should be a progressive aim for breeding (including number of animals to be maintained) and production.

You can visit dairy farms that run on commercial basis and have a discussion with experienced farm owners, analyze every event logically and, if needed, consult with local Veterinarians for more information.

If you plan to manage the farm on your own, look for opportunities to work for an existing farm for a minimum period of six months.

Develop interest and study feed and fodder market in your region, its difficulties in relation to seasons.

Manage a good team of labourers. You need to choose hardworking, reliable persons preferably with some experience. You can also train them for specific jobs.

Visit the cattle market occasionally. Observe animals on sale and talk with persons engaged with purchasing of animals.

Read magazines on dairy industry and keep yourself informed. Babasabpatilfreepptmba.com 45

Study on Foundry Industry, Belgaum Middle class health-conscious Indian families prefer low fat milk for consumption as liquid milk. Therefore, a commercial farm of mixed type (Cross breed cows and buffaloes kept in separate rows under one shed) should be prefered. Thorough study of the immediate market for marketing of milk should be made. You can mix milk from both type of animals and sell as per the need of the market. Hotels and some general customers (can be around 30%) prefer pure buffalo milk. Hospitals, sanitariums etc. prefer cow's milk. Infrastructure and manpower requirements Building a dairy farm involves infrastructures like barns, sheds and stores for teed and medication. Cattle sheds not only facilitate livestock management but they also provide shade from rain and sun, providing a condusive environment for hygenic milk production. The sheds should also have facilities for watering and feeding the livestock. Detailed attention is required in the selection and construction of the cattle sheds and barns to facilitate:• • • • •

Health and comfort of the livestock Security for the livestock Effective management Avoid pollution and other disturbances Production of quality, hygenic and fresh milk

Important factors to be considered in the infrastructure construction like cattle sheds: • •

Supporting beams and building materials should be erect, strong and safe Sheds should have good ventilation and maintain a cool environment in the building despite the hot tropical conditions. Roof-top water sprinklers may assist cooling.

Roofs should be sloped so as not to trap rain-water. Zinc and asbestos may be used due to their durability and should exceed 3.5 meters in height to facilitate ventilation.

Shed/barn flooring should be concrete, non-slippery, easy to clean and rapidly dried with a slight slope to the drains. Floors should be at least 10cm thick. Perimeter drains with 3cm: 1 meter slopes are required to dram water to retention ponds. The floors and drains should be constructed at the same time. Babasabpatilfreepptmba.com 46

Study on Foundry Industry, Belgaum

Feeding throughs, when used, should be big enough to contain sufficient grass. Water may be supplied in pails or special containers. For cattle sheds/ barns without feed throughs, there should be sufficiently large space between sheds for the passage of tractors or trolleys which deliver the feed.

Special enclosures for calves, stores for concentrates and other supplies should be available. Structures should facilitate future expansion.

Sufficient fenced open spaces near or with in the sheds are very useful for heat detection in female cattle.

Facilities to control livestock are required. Neck crushes for milking or treatment and artificial insemination. Structures and ropes to tie animals outside the sheds must be available.

Milking sheds should be constructed to control cows during milking. Facilities for milking and cleaning of milk containers should be made available.

All cattle shed should have electricity and clean water supplies

Technical Feasibility - this would briefly include 1. Nearness of the selected area to veterinary, breeding and milk collection centre and the financing bank's branch. 2. Availability of good quality animals in nearby livestock market. The distribution of important breeds of cattle and buffaloes are given in Annexure II. The reproductive and productive performance of cattle and buffalo breeds is given in Annexure III. 3. Availability of training facilities. 4. Availability of good grazing ground/lands. 5. Green/dry fodder, concentrate feed, medicines etc. 6. Availability of veterinary aid/breeding centres and milk marketing facilities near the scheme area. Economic Viability - this would briefly include Babasabpatilfreepptmba.com 47

Study on Foundry Industry, Belgaum 1. Unit Cost - The average unit cost of dairy animals for some of the States is given in Annexure IV. 2. Input cost for feeds and fodders, veterinary aid, breeding of animals, insurance, labour and other overheads. 3. Output costs i.e. sale price of milk, manure, gunny bags, male/female calves, other miscellaneous items etc. 4. Income-expenditure statement and annual gross surplus. 5. Cash flow analysis. 6. Repayment schedule (i.e. repayment of principal loan amount and interest). Package of Common Management Practices Recommended for Dariy Farmers Modern and well-established scientific principles, practices and skills should be used to obtain maximum economic benefits from dairy farming. Some of the major norms and recommended practices are as follows: I. Housing: 1. Construct shed on dry, properly raised ground. 2. Avoid waterlogging, marshy and heavy rainfall areas. 3. The walls of the sheds should be 1.5 to 2 meters high. 4. The walls should be plastered to make them damp proof. 5. The roof should be 3-4 meters high. 6. The cattle shed should be well ventilated. 7. The floor should be pucca/hard, even non-slippery impervious, well sloped (3 cm per meter) and properly drained to remain dry and clean. 8. Provide 0.25 meter broad, pucca drain at the rear of the standing space. 9. A standing space of 2 x 1.05 meter for each animal is needed. Babasabpatilfreepptmba.com 48

Study on Foundry Industry, Belgaum 10. The manger space should be 1.05 meter with front height of 0.5 meter and depth of 0.25 meter. 11. The corners in mangers, troughs, drain and walls should be rounded for easy cleaning. 12. Provide 5-10 sq. meter loaf space for each animal. 13. Provide proper shade and cool drinking water in summer. 14. In winter keep animals indoor during night and rain. 15. Provide individual bedding daily. 16. Maintain sanitary condition around shed. 17. Control external parasites (ticks, flies etc.) by spraying the pens, sheds with Malathion or Copper sulphate solution. 18. Drain urine into collection pits and then to the field through irrigation channels. 19. Dispose of dung and urine properly. A gobar gas plant will be an ideal way. Where gobar gas plant is not constructed, convert the dung alongwith bedding material and other farm wastes into compost. 20. Give adequate space for the animals. (The housing space requirement of crossbred cattle in various categories/age-groups is given in Annexure-VII). Selection of Animal: 1. Immediately after release of the loan purchase the stock from a reliable breeder or from nearest livestock market. 2. Select healthy, high yielding animals with the help of bank's technical officer, veterinary/animal husbandry officer of State government/ Zilla Parishad, etc. 3. Purchase freshly calved animals in their second/third lactation. 4. Before purchasing, ascertain actual milk yield by milking the animal three times consecutively.

Babasabpatilfreepptmba.com

49

Study on Foundry Industry, Belgaum 5. Identify the newly purchased animal by giving suitable identification mark (ear tagging or tattooing). 6. Vaccinate the newly purchased animal against disease. 7. Keep the newly purchased animal under observation for a period of about two weeks and then mix with the general herd. 8. Purchase a minimum economical unit of two milch animals. 9. Purchase the second animal/second batch after 5-6 months from the purchase of first animal. 10. As buffaloes are seasonal calvers purchase them during July to February. 11. As far as possible purchase the second animal when the first animal is in its late stage of lactation and is about to become dry, thereby maintaining continuity in milk production vis-à-vis income. This will ensure availability of adequate funds for maintaining the dry animals. 12. Follow judicious culling and replacement of animals in a herd. 13. Cull the old animals after 6-7 lactations.

Feeding of Milch Animals 1. Feed the animals with best feeds and fodders. (Feeding schedule is given in Annexure VIII). 2. Give adequate green fodder in the ration. 3. As far as possible, grow green fodder on your land wherever available. 4. Cut the fodder at the right stage of their growth. 5. Chaff roughage before feeding. 6. Crush the grains and concentrates.

Babasabpatilfreepptmba.com

50

Study on Foundry Industry, Belgaum 7. The oil cakes should be flaky and crumbly. 8. Moisten the concentrate mixture before feeding. 9. Provide adequate vitamins and minerals. Provide salt licks besides addition of mineral mixture to the concentrate ration. 10. Provide adequate and clean water. 11. Give adequate exercise to the animals. Buffaloes should be taken for wallowing daily. In case this is not possible sprinkle sufficient water more particularly during summer months. 12. To estimate the daily feed requirement remember that the animals consume about 2.5 to 3.0 percent of their body weight on dry matter basis. Milking of Animals 1. Milk the animals two to three times a day. 2. Milk at fixed times. 3. Milk in one sitting within eight minutes. 4. As far as possible, the same person should do milking regularly. 5. Milk the animal in a clean place. 6. Wash the udder and teat with antiseptic lotions/luke-warm water and dry before milking. 7. Milker should be free from any contagious diseases and should wash his hands with antiseptic lotion before each milking. 8. Milking should be done with full hands, quickly and completely followed by stripping. 9. Sick cows/buffaloes should be milked at the end to prevent spread of infection. Protection against Diseases 1. Be on the alert for signs of illness such as reduced feed intake, fever, abnormal discharge or unusual behaviour. 2. Consult the nearest veterinary aid center for help if illness is suspected. Babasabpatilfreepptmba.com 51

Study on Foundry Industry, Belgaum 3. Protect the animals against common diseases. 4. In case of outbreak of contagious disease, immediately segregate the sick, in contact and the healthy animals and take necessary disease control measures. (Vaccination schedule is given in Annexure IX). 5. Conduct periodic tests for Brucellosis, Tuberculosis, Johne's disease, and Mastitis etc. 6. Deworm the animals regularly. 7. Examine the faeces of adult animals to detect eggs of internal parasites and treat the animals with suitable drugs. 8. Wash the animals from time to time to promote sanitation. Breeding Care 1. Observe the animal closely and keep specific record of its coming in heat, duration of heat, insemination, conception and calving. 2. Breed the animals in time. 3. The onset of oestrous will be within 60 to 80 days after calving. 4. Timely breeding will help achieving conception within 2 to 3 months of calving. 5. Breed the animals when it is in peak heat period (i.e. 12 to 24 hours of heat). 6. Use high quality semen preferably frozen semen of proven sires/bulls. Marketing of Milk 1. Marketing milk immediately after it is drawn keeping the time between production and marketing of the milk to the minimum. 2. Use clean utensils and handle milk in hygienic way. 3. Wash milk pails/cans/utensils thoroughly with detergent and finally rinse with chloride solution. 4. Avoid too much agitation of milk during transit. Care of Calves Babasabpatilfreepptmba.com 52

Study on Foundry Industry, Belgaum 1. Take care of newborn calf. 2. Treat/disinfect the navel cord with tincutre of iodine as soon as it is cut with a sharp knife. 3. Feed colostrums to calf. 4. Assist the calf to suckle if it is too weak to suckle on its own within 30 minutes of calving. 5. In case it is desired to wean the calf immediately after birth, then feed the colostrums in bucket. 6. Keep the calf separately from birth till two months of age in a dry clean and well ventilated place. 7. Protect the calves against extreme weather conditions, particularly during the first two months. 8. Group the calves according to their size. 9. Vaccinate calves. 10. Dehorn the calves around 4 to 5 days of age for easy management when they grow. 11. Dispose of extra calves not to be reared/maintained for any specific purpose as early as possible, particularly the male calves. Reproduction performance Most of the buffaloes are considered to be seasonal breeds with maximum calving taking place from July in November in almost all breeds. Buffaloes come in oestrous in cold month and are subfertile during hot month. Sub-fertility: due to poor thermo-regulation in buffaloes and Poor nutrition: poor heat symptom-low heat detection (only lignocelluloses material straw/dry roughages) Minimum economic size to start a dairy farm?

Babasabpatilfreepptmba.com

53

Study on Foundry Industry, Belgaum Under Indian conditions a commercial dairy farm should consist of minimum 20 animals (10 cows, 10 buffaloes) and this strength can easily go up to 100 animals in proportion of 50:50 or 40:60. After this, however, you need to review your strength and market potential before you chose to go for expansion. Dairy farming is a safe business for the following reasons:

It is eco-friendly and does not cause environmental pollution as compared to other industries

• • • • • •

Requirement of skilled labour is relatively. Dairy product market is active round the year. Minimum investment on inventory. (No need to stock raw materials in huge quantities.) Entire establishment can be shifted to a new location (if need arises c e fire, floods etc.) One can insure animals. Less energy requirement. Biogas plant fed with cow dung can supply maximum energy to meet day-to-day requirement of farms. Decomposed slurry of such plant can also be effectively used as organic manure.

Limitations and constraints in dairy farming

Breeding of animals and getting expected milk yield is a biological phenomenon, which depends upon various factors.

Dairy farming, besides good planning, requires hardworking, reliable and alert manager. In India, usually persons from the family take the responsibility.

Inadequate management of feeding, herd health and lack of quality control in various stage of production can cause major loss, affecting the profitability of the entire venture. Professional training institutes for dairy farming techniques Opportunities for (raining are available with most of the:

Agricultural/Veterinary universities of various slates Babasabpatilfreepptmba.com 54

Study on Foundry Industry, Belgaum
• • •

Krishi Vigyan Kendras State department of Animal Husbandry You can also choose to inquire with national level organization like: National Dairy Research Institute (NDRI), Karnal (Haryana) - for training on rearing of dairy animals and manufacture of milk products.

Alternately, you can also look for training facilities of non-governmental organizations that are active in farming sectors.

Reproductive and Productive Parameters (Traits) in Indian Cattle and Buffaloes

Sr.No Breed

Age at Calving first interval calving (months) (months)

Lactation yield (kg.)

Lactation length (days)

Dry period (days)

Milk yield kg/day

i) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Cattle Indian breeds Dangi Deogir Deoni Gir Gaolao Hallikar Hariana Kangayam Kankrej Khilari Ongole Rathi Red Sindhi Sahiwal Tharparkar Umblachery Non-descript

54 48 53 48 46 46 58 44 48 52 40 40 42 40 50 46 60

17 15 14 16 16 20 13 16 17 16 19 19 14 14 14 17 19

600 1,500 810 1,350 600 600 1,200 600 1,800 240 630 1,815 1,620 1,620 1,620 360 405

300 300 270 270 300 300 240 240 360 240 210 330 270 270 270 240 270

210 150 150 210 180 300 150 240 150 240 360 240 150 150 150 270 300

2.0 5.0 3.0 5.0 2.0 2.0 5.0 2.5 5.0 1.0 3.0 5.5 6.0 6.0 6.0 1.5 1.5

Babasabpatilfreepptmba.com

55

Study on Foundry Industry, Belgaum

S.No. 1 2 3 4 5

Items

Specifications

Phy.units 10 10 650 200 10

6 7 8 9 10

Cost of animals Transportation cost of animals Cost of construction of Sq.ft. shed Cost of Store cum office Sq.ft. Equipments (chaff cutter, milking pails, cans, technicians Insurance Fodder raising expenses @ Rs.3000/acre Total cost Margin money (15% of total cost) Bank loan (85% of total cost)

Unit Cost (Rs./unit) 8,200 300 55 100 500

Total (Rs.) 8,200 3,000 35,750 20,000 5,000

Cost

10 2

328 3,000

3,280 6,000 155,030 23255 23330 131776 131700

Say Say

TECHNO ECONOMIC PARAMETERS

i) No.of milch animals ii) Cost of milch animals iii) Lactation period (days) iv) Dry period (days) v) Milk yield (lts./day) vi) Sale price of milk (Rs./lt) vii) Sale of manure/animal/year (Rs.) viii) Insurance premium for five years (%) ix) Veterinary aid/animal/year (Rs.) x) Labour (Rs.) xi) Cost of electricity & water (Rs./animal) xii) Interest rate (%) xiii Repayment period (years) MODEL PROJECT FOR TEN BUFFALOES UNIT

2 8,200 280 150 7 7.75 300 8.4 150 Family labour 100 12 5

Babasabpatilfreepptmba.com

56

Study on Foundry Industry, Belgaum

Annexure - VIII Feeding Schedules for Dairy Animals (Quantity in Kgs.) S.No. (A) a) b) (B) a) b) c) Type of animal CROSSBRED COW 6 to 7 litres milk per day 8 to 10 litres milk per day Feeding during Green Fodder Lactation days Dry days Lactation days Dry days BUFFALOES Murrah (7 to 8 litres milk Lactation days per day) Dry days Mehasana (6 to 7 litres Lactation milk per day) Dry days 20 to 25 15 to 20 25 to 30 20 to 25 25 to 30 20 to 25 10 to 15 10 to 15 5 to 10 Dry Fodder Concentrate

5 to 6 6 to 7 4 to 5 6 to 7 4 to 5 5 to 6 4 to 5 5 to 6 4 to 5 5 to 6

3.0 to 3.5 0.5 to 1.0 4.0 to 4.5 0.5 to 1.0 3.5 to 4.0 0.5 to 1.0 3.0 to 3.5 0.5 to 1.0 2.5 to 3.0 0.5 to 1.0

days 15 to 20

Surti (5 to 6 litrs milk per Lactation days day) Dry days

Babasabpatilfreepptmba.com

57

Study on Foundry Industry, Belgaum

Programme for vaccination of farm animals against contagious diseases

Sr. No. 1

Name of disease Anthrax (Gorhi)

Type vaccine Spore vaccine

of Type of Duration of Remarks vaccination immunity Once in an year One season premonsoon vaccination - do - do - do - do -

2 3

4 5

Black Quarter (Sujab) Haemorrhagic Septicaemia (Galghotu) Brucellosis (Contagious abortion) Foot and Mouth disease (Muhkhar)

Killed vaccine Ocladjuvant vaccine Cotton strain 19 (live bacteria) Polyvalent tissue culture vaccine

-

6

Rinderpest (Mata)

At about 6 3 or 4 To be done only months of age calvings in infected herds At about 6 One season After months of age vaccination with booster repeat dose 4 months vaccination later every year in Oct./Nov. Lapinised At about 6 Life long It is better to avianised months of age repeat after 3 to vaccine for 4 years exotic and crossbred catte, caprinised vaccine for zebu cattle.

Babasabpatilfreepptmba.com

58

Study on Foundry Industry, Belgaum Selecting the animal to farm with - Cows v/s. Buffaloes Cows Buffaloes Good quality cows are available in the market and In India, we have good buffalo breeds like it cost around Rs.1200 to Rs. 1500 per liter of Murrah and Mehsana, which are suitable for milk production per day. (e.g. Cost of a cow commercial' dairy farm. producing 10 liter of milk per day will be between Rs. 12,000 to Rs. 15,000). If proper care is given, cows breed regularly Buffalo milk has more demand for making giving one calf every 13-14 month interval. butter and butter oil (Ghee), as fat percentage in milk is higher than cow milk. Buffalo milk is also preferred for making tea. They are more docile and can be handled easily. Buffaloes can be maintained on more fibrous Good milk yielding cross breeds (Holstein and crop residues, hence, scope for reducing feed Jersey crosses) has well adapted to Indian cost. climate. The fat percentage of cow's milk varies from 3- Buffaloes largely mature late and give birth to 5.5% and is lower than Buffaloes. calves at 16 to 18 months interval. Male calves fetch little value. Buffaloes need cooling facility e.g. wallowing tank or showers/foggers with fan.

Breeds of buffaloes of Indian origin and breeding tracts Group Murrah type Breed Murrah Nili Ravi Breeding tract Rohtak, Jind, Hisar, Bhiwani, Sonepat (Haryana) Ferozepur Babasabpatilfreepptmba.com 59

Study on Foundry Industry, Belgaum (Punjab) Jaffarabadi Kaira and Baoda, Kutch, Jungarh & Jamnagar dist Mehsana, Sabarkantha, Banaskantha Dist. Bhadawari estate, Beh Tehsil in Agra, Gwalior & Etawah dist.

Gujarat

Surti

Mehsana Uttar Pradesh Bhadawari Tarai Central India

Taarai region of U. P. Nagpuri Pandharpuri Nagpur, Akola, Amravati dist. (South Maharashtra), West A. P., Kalahandi Sambalpur North Karnataka Hilly region of Andra Pradesh and Orissa Bilaspur dist. Nilgiri Hills, West coast in Kerela

South India

Toda South Kanara

Babasabpatilfreepptmba.com

60

Sign up to vote on this title
UsefulNot useful