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A

DETAIL PROJECT FEASIBILITY REPORT


FOR
COW DUNG LOGS MANUFACTURING UNIT

at:

C/o Maa Shakuntala Gau Sewa Dharmarth Trust


Near Rajkya Inter College, Khadri Khadak Maf, Shyampur,
Rishikesh, District Dehradun, Uttarakhand-249204

FROM:

Sanjay Pokhriyal
Rusa Farm, Gumaniwala
Shyampur, District Dehradun, Uttarakhand-249201

Compiled By:
CA AKASH GUPTA,
B.COM, A.C.A.,

D K GUPTA & ASSOCIATES


CHARTERED ACCOUNTANTS
Office No. 4 & 5, A.N. Tower, 29/4A-Govind Nagar,
Opp. Old Rodways Bus Stand,
RISHIKESH,
Uttarakhand-249201
PHONE (O) +91-135-2436770, +91-11-43096823
(M) +91-7017123168, +91-8006056770
Email: cakash13@gmail.com
1) INTRODUCTION

 ABOUT PROJECT

Conventionally fire wood, electricity or LPG gas is used for cremation purpose, cooking food,
industrial boiler, brick kilns factory etc. Indian people mostly prefer traditional product for
cremation e.g. wooden logs and dried cow dung logs. Compared to fire wood and other
alternatives, cremation using cow dung logs cost less, further in industrial boiler or brick kilns
factory if cow dung logs are used then its cost will be less. Almost 400kg of wood is required for
every single one of its seven million cremations, which caused deforestation resulting in global
warming, damages the environment and also produces more smoke. This has lead to the increased
demand of cow dung logs but due to difficulty in manufacturing long logs, availability remains a
problem. This opportunity inspired Mr. Sanjay Pokhriyal to setting up a manufacturing unit that
makes long cow-dung logs with minimum human intervention. For Setting up this manufacturing
unit Mr. Sanjay Pokhriyal needs three machine .

a) Mixture Machine
b) Cow Dung Dewatering Machine
c) Cow Dung Bio Fuel Machine

 How are wooden logs made from Dung?

Blend of dung and straw (or any agro waste/harvested crop residues) is fed into the hopper of the
machine. The machine has been provided with Screw mechanism, which helps in mixing raw
materials thoroughly, compress them and extrude them out. By using different size of die, logs of
different shapes and sizes can be made easily. Produced logs are then put under the sunlight to dry
out the moisture inside them, making them hard and sturdy.

 Use of this Cow Dung Logs.

Wood /Logs made from cow dung are very beneficial as it is environment friendly. This wood will
be used for Havan, Yagya-Pooja text, rituals etc.

The employment opportunities will also be open to the youth. Along with this, a good income can
be earned by making other products made from cow dung such as sculptures, face packs and
medicines.

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Complied By: D K Gupta & Associates (CA) RISHIKESH-249201 (O) 0135-2436770, (M) +91-7017123168

 Silent Features of Machines


 Helps in managing cow dung in Gaushala and dairy farm by making value added
products and increase the income.
 The machine can be operated on electricity.
 Easy to operate and maintain, even women labour can also operate it.
 One person can do a job viz. mixing, feeding and handling output product.
 Throughout the length of the log, in its centre, a cylindrical hole has been provided to
facilitate easy drying and efficient combustion
 Size of logs can be increased or decreased as per requirement for various applications.
 The machine is capable of making one log per minute and 50 to 60 logs per hour (3 x 3
inch, 3 feet long). Logs can also be cut into small pieces for its usage in "Chulla" and
"Havan" purpose.
 Slurry from biogas can also be used for making logs by mixing it with straw or any other
harvested crop residues.
 Eco friendly application, saves the forest cover and better utilizes the agro waste.

 USES OF MACHINE

 Mixture Machine: Used for mixing and grinding of cow dung into required form.

 Cow Dung Dewatering Machine: Cow dung dewatering machine is mainly used for
removing extra water from fresh manure. Generally speaking, the water content of fresh
manure usually is 80% to 90%, which increases the difficulty of management.
With the help of manure dewatering plant, you can reduce the water content of fresh
manure to 25%-40%. After dewatering, it is more convenient for you to make organic
fertilizer from cow dung and direct transportation.

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 Cow Dung Bio Fuel Machine: Used for giving shape i.e. cylindrical, rectangle etc to cow
dung so that it will look like a Cow logs.

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Complied By: D K Gupta & Associates (CA) RISHIKESH-249201 (O) 0135-2436770, (M) +91-7017123168

 ABOUT OWNER

Mr. Sanjay Pokhriyal is the resident of Rusa Farm, Gumaniwala, Shyampur District Dehradun-
249204 and want to setting up a manufacturing unit for Cow Dung Logs at C/o Maa Shakuntala
Gau Sewa Dharmarth Trust Near Rajkya Inter College, Khadri Khadak Maf, Shyampur, Rishikesh,
District Dehradun, Uttarakhand-249204. Proposed project is purchase of three machines use for
manufacturing of cow dung logs . Approximate Cost of the project will be Rs 3.90 Lakhs (Approx)
which will include buying cost of three machines, transportation cost, GST and other misc. charges
etc. Project requires fund from Bank in form of term loan amounting to Rs. 3.10 Lakhs and rest of
the amount will be contribute by the Owner himself.

2) AIM
The aim of this project is to unfold various aspects i.e. to eliminate or to minimize excessive
cutting of trees, giving employment to large number of peoples after its successful implementation.
This project also help in good decision making both in establishment and production by an
extensive market survey. The plan will not only ensure proper utilization of cow dung . but also
help reduce cutting of trees for fuel on the one hand and cut back on pollution caused by burning
wood.

3) KEY REASONS FOR SUCCESS OF OUR PROJECT


Abundant raw material in the Area Rishikesh : There is lots of Gau Sewa Trust in Rishikesh from
where Raw material can be easily collected. Further the project where it is proposed to be setup is
in itself established in a trust incorporate for the benefits of cow.

4) SCOPE OF PROPOSED PROJECT.


In a recent news article dated 16th March 2019 published in Times of India a leading newspaper of
India it comes to know that cow dung logs are used to celebrate the Holi festival by replacing the
timber to burn the mythical Holika with cow dung logs in Agra. It also mentioned that cow dung
logs are selling at Rs6/Kg in the open market. This project also encourages people to use cow dung
logs instead of wood for Holi. Further People shouldn’t be worried about using cow dung logs due
to religious reasons since cow dung has been used in cremation for centuries and even now,
villagers use it during funerals.

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Complied By: D K Gupta & Associates (CA) RISHIKESH-249201 (O) 0135-2436770, (M) +91-7017123168

5) ECONOMIC, SOCIAL AND ENVIRONMENTAL ADVANTAGES OF


USING COW DUNG LOGS.
 Cow Dung Logs can be used for Fuel and Manure.
 Simplifies Handling, Storage, and Transportation problem economically.
 Reduces wastage or loss of material.
 For Fuel other agro residue powder coal can be added to get improved C.V.
 Densified logs give better C.V. (Calorific Value) in comparing to patties.
 Long and small logs can be cut out as per purpose.
 Briquettes and blocks is an effective way to reduce the risk of explosion and fire of fast
flammable material.
 It is easily available, unlimited and low-cost fuel

6) PROCESS/STEPS

A. Obtaining Quotation/Purchase Order of above Three mentioned machines from Different


Supplier.

Owner of this project already asked for Quotation/ purchase order from different types of
supplier of the machines and stuck at selected supplier located at Patiala and in Rishikesh
which ultimately ready to sale the above mentioned machines at a total cost of Rs. 3.10 lakhs,
the above supplier quote the price which is very competitive with the market.
a) Mixture Machine: Cost of Rs.82,600/- including GST and excluding transportation.
b) Cow Dung Dewatering Machine: Cost of Rs.1,77,000/- including GST and excluding
transportation.
c) Cow Dung Bio Fuel Machine: Cost of Rs.50,400/- including GST and excluding
transportation.

B. Feasibility Study

a) Market Analysis

75% of India’s deceased are cremated, the second highest rate in the world – just
behind Nepal.

Traditional wood cremation uses about 400-500 kg of wood in one burning and cities
like Delhi, where 80,000 wood cremations occur every year, this would require over
3.6 crore kg wood — equivalent to burning about 4 lakh trees, and that’s just in one
city.

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Complied By: D K Gupta & Associates (CA) RISHIKESH-249201 (O) 0135-2436770, (M) +91-7017123168

With cremations being an inherent part of many cultures, owner of the project comes
with an eco-friendly technique that offers a solution to counter air and water pollution
as well as waste management. The machine first creates these logs by feeding dried
cow dung to a log-making machine, where they are burnt under controlled temperature,
upwards of 50ºC. The controlled burning is claimed to be less polluting, and the usage
of alternative logs also leads to minimal pollution.

Cow dung logs could become feasible as they would not hinder religious beliefs, as
cow dung has been used in cremations since the early days.

b) Local Supply And Demand

Since the manufactured product can be used by industrial boiler , bricks kiln factories,
in cremation purpose So there is always good demand of product in nearby area. As the
product is available at very competitive rate in the market also a unique one. so it is
good decisions of the owner to start the above project.

C. Financial Closures by Banks or Investors

Proprietor will contribute own fund with contribution of bank for purchase of machinery. Cost
of the project will Rs 3.90 Lakhs (Approx) out of which proprietor seeks Rs.3.10 Lakhs from
Bank as term loan to be repayable in 5 years.

D. Registration for GST and Import Export Code.

After confirmation from Bank support, Proprietor will applied for GST registration which is a
primary requirement for sale of manufactured product out of uttarakhand.

E. Employee Hiring Process

After finalization of above steps employee hiring process will be started and hired by
proprietor with a facility of Home delivery of the product to end consumer.

7) FLOW CHART OF MANUFACTURING COW DUNG LOGS.


Gau Sewa Trust/Cow Shelter Purchase from different Vendors

Collection of Cow Dung from different sources.


(Raw Material)

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Complied By: D K Gupta & Associates (CA) RISHIKESH-249201 (O) 0135-2436770, (M) +91-7017123168

Mixing and grinding it through Mixture Machine

Extraction of Moisture from Cow dung through


Dewatering Machine.

Giving shape to Cow dung in cylindrical or


rectangle form as cow dung logs through Bio
Fuel Machine. (Finished Goods)

8) RECOMMENDED PRODUCTION AND PRICE STRUCTURE OF


PRODUCT

The machine is capable of making one log of 1 KG each in per minute and 50 to 60 logs per
hour (3 x 3 inch, 3 feet long). The Price of the product will be lesser in comparative market
which goes to Rs.6 to Rs.7 per KG as per the profitability of the proprietor.

9) APPROVALS, REGISTRATIONS & LICENSES AND


DOCUMENTS
As per the norms of the Indian Government, after obtaining approval for sanction of loan from
Bank , Proprietor obtain registration under GST and other applicable registration.

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