Layer Poultry Farming

Project Report

Kerala Egg Co.

by Sridhar Gupta
25/01/2019

This document was developed and published by Sridhar Gupta for the purpose of summarising all relevant layer farm
income related issues associated with in-house business operations of Kerala Egg Co..
The outline provided within these pages is accurate as of the date of publication.
 Table of Contents

Introductory Letter ...................................3

Land & Development ..................................4

Capacity & Rearing System ...................................5

Operational Costs ...................................6

Start-Up Capital ...................................7

Farm Productivity ...................................8

Income Statement ...................................9

Calculating NPV & BCR ...................................9

Assumptions, Constraints &

...................................10
Risks

Layer Farming Project Report - By

Kerala Egg Co. 2/12
Sridhar Gupta
"...this proposal is for an intensive layer poultry farm in Kerala State,
Malappuram district."
- Sridhar Gupta

Introductory Letter
Layer Poultry Project Report

A Warm Welcome - From Sridhar Gupta

Welcome To Kerala Egg Co.!

Hi, my name is Sridhar Gupta - founder and CEO of Kerala Egg Co.

Our management team of experienced poultry professionals and consultants plan to

launch a new semi-intensive, integrated layer poultry farming operation.

Through this endeavour, we hope to restore a much needed advantage to state

based poultry production, which for your years has been under pressure from
increasing costs and out of state competition.

The resulting economic trend has lead to ever decreasing profits...and a depressed
local poultry trade.

With the enclosed plan we plan to combat the adverse economic trends with keen
business management, deriving excellent product quality and affordability.

We hope to generate many jobs for the local Kerala State communities providing
much needed gainful labour for households in such challenging financial times.

We welcome you to view our project report and consider this an invitation to
consider financially assisting the start-up of this much needed layer poultry farm.

With sincerity, I thank you in advance on behalf of all of us at Kerala Egg Co. for your
consideration of this proposal.

Your faithfully,

Sridhar Gupta

Kerala Egg Co.

Thazhvaran Road (Opposite The Campsite), Up Hill
Malappuram Kerala 120000

Tel: 91 481 111 1111

Email: s.gupta@keralaegg.co
Web: http://keralaegg.co
 Layer Poultry Farming Tel: 91 481 111 1111

Email: s.gupta@keralaegg.co

Project Report Web: http://keralaegg.co

Written by: Sridhar Gupta | Period of Analysis: 25/01/2019 - 25/01/2024

[A] - Land & Land Development Location/Area: Malappuram District, Kerala

(This page declares the necessary detail surrounding land and grounds development in preparation for your layer
poultry farm)

A1. Land & Land Development Summary

Address: Thazhvaran Road (Opposite The Campsite), Up Hill

Malappuram Kerala 120000

A2. Site Map (Photo)

Layer Farming Project Report - By

Kerala Egg Co. 4/12
Sridhar Gupta
 [B] - Capacity & Rearing System Farm Type: Layer, Poultry

(This page declares the proposed production capacity and corresponding rearing system for the enclosed layer
poultry farm plan)

B1. Capacity
(a) System of Layer Birds (b) Housing Style (c) Total Laying Capacity
1+1+5 housing system Cage system 10000 birds
(d) Batch Size (e) Poultry House Floor Space
2000 chicks 23,540.68 Sq.Ft.

B2. Civil Buildings

(a) Civil Buildings Summary (b) Types of Buildings Required
Team of 6 expected for day-to-day running of the farm. Office
Administrative, management and farm labourers will Toilet Block
require necessary amenities. Labourer's Quarters

B3. Feeders & Drinkers

(a) No. of Feeders Needed (b) No. of Drinkers Needed
600 feeders 240 drinkers
(c) Price Per Feeder (d) Price Per Drinker
Rs. 220 per feeder Rs. 178 per drinker

*** Bird Cages

(a) Type of Cage (b) No. Birds Per Cage
3-Tier 95 layers/cage
(c) No. of Cages (d) Price Per Cage
105 cages in total Rs. 9000

B4. Poultry Farming Equipment

(a) Types of General Equipment (b) Types of Storage Equipment

Grain Store
Water Store

B5. Batches & Intervals

(a) Batch Interval (b) No. of Batches Per Annum

12 weeks 4 batches/pa

Layer Farming Project Report - By

Kerala Egg Co. 5/12
Sridhar Gupta
 [C] - Annual Operational Farm Costs Ave. No. of Batches Per Annum: 2

(This page declares the recurring running costs associated with the enclosed layer poultry farm project)

C1. Day Old Chicks

(a) Breed of Layers (b) No. of Chicks Per Batch
BV 300 2100 chicks
(d) Expected Bird Mortality Rate (e) Expected Bird Mortality Per Batch
5% 100 birds
(f) Average Cost Per Chick (g) Average Cost Per Batch
Rs. 40 Rs. 84000
(f) No. Batches Sold Annually (g) Annual Cost of Chicks
4 batches Rs. 336000

C2. Bird Feed

(a) Cost of Feed Per KG (b) Amount of Feed Per Batch
Rs. 20 per kg 9586 kg
(a) No. of Batches Bought Annually (b) Annual Cost of Feed Bought
4 batches Rs. 38344

C4. Layer Farm Overheads

(a) Medicines & Vet Costs (b) Livestock Insurance (c) Building Insurance
Rs. 16800 Rs. 24360 Rs. 50000
(d) Electricity (e) Water (e) Farm Labour
Rs. 120000 Rs. 80000 Rs. 24960
(d) Transport (e) Maintenance (e) Misc.
Rs. 12480 Rs. 10000 Rs.

Layer Farming Project Report - By

Kerala Egg Co. 6/12
Sridhar Gupta
 [D] - Capital Cost Projections Total Start-Up Cost: Rs. 12577000

B11. Capital Start-Up Projections

(a) Land Acquisition (b) Poultry Housing (c) Civil Buildings
Rs. 1500000 Rs. 2860000 Rs. 12000
(d) Electrics (e) Water (f) Store Rooms
Rs. 100000 Rs. 100000 Rs. 70000
(g) Feeders (h) Drinkers (i) Other Equipment
Rs. 132000 Rs. 42720 Rs. 10000
(j) Cages (k) Infrastructure
Rs. 945000 Rs. 40000

TOTAL CAPITAL COST

Rs. 4704000

(g) Cost of 1st Batch (Chicks) (h) Cost of Feed (1st Batch) (h) Cost of Medicines & Vet
Rs. 336000 Rs. 7198400 Rs. 16800
(i) Miscellaneous Costs (j) Labour Cost (1st Batch) (j) Livestock Insurance
Rs. Rs. 24960 Rs. 24360
(i) Building & Contents Insurance (j) Electricity Water
Rs. 50000 Rs. 120000 Rs. 80000
(i) Other Equipment (j) Transport To Market Maintenance & Repairs
Rs. Rs. 12480 Rs. 10000

TOTAL START-UP WORKING

CAPITAL
Rs. 7873000

TOTAL START-UP PROJECT COST Margin money Loan Required

Rs. 12577000 Rs. 1500000 Rs. 11077000

Layer Farming Project Report - By

Kerala Egg Co. 7/12
Sridhar Gupta
 [E] - Farm Productivity Egg Revenue As % of Total Income: 88.67

(This page declares the estimated productivity of the proposed layer poultry farm project. )

E1. Egg Production

(a) Ave. No. Eggs Per Bird / p.a. (b) Ave. No. Eggs Per Batch (c) Price Per Egg
310 eggs/bird p.a. 591500 eggs/batch cycle Rs. 4
(d) Egg Weight (e) Feed Conversion Ratio (f) Egg: Feed Price Ratio
55 g 2.76 12.34

ITEMS/YEARS (1-6) 1 2 3 4 5 6
Income (000's)

Egg sales:
660100 2472960 2573480 2558220 2557800 2573480
Rs. Rs. Rs. Rs. Rs. Rs.
Sales revenue from eggs sales:
2640400 9891840 10293920 10232880 10231200 10293920
Laying Weeks: 60 216 228 224 224 228
Batch size: 2000 2000 2000 2000 2000 2000

E2. Spent Hen Production

(a) Ave. Weight Spent Hen (KG) (b) Price of Spent Hen Per Kg (c) Spent Hens: Ave. Sale Price
1kg Rs. 30 per kg Rs. 30

ITEMS/YEARS (1-6) 1 2 3 4 5 6
Income (000's)

Spent hen (cull) sales:

6000 8000 8000 10000 8000
Rs. Rs. Rs. Rs. Rs.
Revenue from sale of spent hens: Rs.
180000 240000 300000 240000 240000

E3. Manure Production

(a) Manure Per Bird / Day (b) Feed Manure Efficiency (c) Price Per lbs. of Manure
0.35 lbs. 267.1 3.3 lbs.

ITEMS/YEARS (1-6) 1 2 3 4 5 6
Income (000's)

Manure sales:
282240lbs. 282240lbs. 282240lbs. 282240lbs. 282240lbs. 282240lbs.
Rs. Rs. Rs. Rs. Rs. Rs.
Revenue from manure sales:
931392 931392 931392 931392 931392 931392

Layer Farming Project Report - By

Kerala Egg Co. 8/12
Sridhar Gupta
 [F] - Income Statement 1st Year Gross Profit (Surplus): Rs. 523371

(This page declares the gross profit or surplus funds available after all related running expenses are paid for within
this proposed egg farm)

ITEMS/YEARS (1-6) 1 2 3 4 5 6
Income (000's)
Rs. Rs. Rs. Rs. Rs. Rs.
Sale of eggs:
2640400 9891840 10293920 10232880 10231200 10293920
Rs. Rs. Rs. Rs. Rs.
Sales of spent hens: Rs.
180000 240000 300000 240000 240000
Rs. Rs. Rs. Rs. Rs. Rs.
Sale of gunny bags:
10000 10000 10000 10000 10000 10000
Rs. Rs. Rs. Rs. Rs. Rs.
Sale of manure:
931392 931392 931392 931392 931392 931392
Rs.
Depreciation on Equipment: Rs. Rs. Rs. Rs. Rs.
12000
Rs.
Depreciation on Buildings: Rs. Rs. Rs. Rs. Rs.
4000
Rs. Rs. Rs. Rs. Rs. Rs.
Total Income:
3581792 11013232 11475312 11474272 11412592 11491312
Expenses (000's)
Rs. Rs. Rs. Rs. Rs. Rs.
Cost of day old chicks:
400000 320000 320000 400000 320000 320000
Rs. Rs. Rs. Rs. Rs. Rs.
Cost of Feed for Birds:
2719821 7374978 7632963 7572669 7604298 7632963
Rs. Rs. Rs. Rs. Rs. Rs.
Cost of Operational Labour:
24960 24960 24960 24960 24960 24960
Rs. Rs. Rs. Rs. Rs. Rs.
Misc. - Utilities, Medicine, Insurance:
313640 313640 313640 313640 313640 313640
Rs. Rs. Rs. Rs. Rs. Rs.
Total Expenses:
3058421 8113578 8291563 8311269 8262898 8291563
Rs. Rs. Rs. Rs. Rs. Rs.
GROSS PROFIT/SURPLUS:
523371 2899654 3183749 3163003 3149694 3199749

Layer Farming Project Report - By

Kerala Egg Co. 9/12
Sridhar Gupta
 [G] - Calculation of NPV & BCR Benefit Cost Ratio (BCR): Rs. 1.22

(This page declares the comparative assessment indicators NPV and BCR for to assist in investment decision
regarding the subject layer poultry farm project.)

YEARS 1 2 3 4 5 6
Rs.
Capital Costs Rs. Rs. Rs. Rs. Rs.
4704000
Rs. Rs. Rs. Rs. Rs. Rs.
Recurring Costs
3058421 8113578 8291563 8311269 8262898 8291563
Rs. Rs. Rs. Rs. Rs. Rs.
Total Costs
7762421 8113578 8291563 8311269 8262898 8291563
Rs. Rs. Rs. Rs. Rs. Rs.
Benefit
3581792 11013232 11475312 11474272 11412592 11491312
Rs. Rs. Rs. Rs. Rs. Rs.
Net Benefit
-4180629 2899654 3183749 3163003 3149694 3199749
NPV: Rs. 5759470.58
BCR: 1.22

Layer Farming Project Report - By

Kerala Egg Co. 10/12
Sridhar Gupta
 [F] - Assumptions, Constraints & Risks Estimate Risk: Low

We consider this project proposal to hold relatively low risk.

With a Benefit-Cost Ratio of 1.22, it offers better investment returns than a comparative opportunity of 12%.

The conditions of the macro-economic & micro-economic climate are unlikely to cause a decrease in the demand
for eggs as an affordable source of dietary protein for the inhabitants of Kerala.

With the experience of the management team involved and track-record for delivering poultry farming success at
similar scale to that proposed herein, we consider any investment made in backing this business to be in worthy
hands.

Of course, there are extraneous issues that arise, environmentally for example, but we are confident in hoping
that as far as the variables that ought to be governed in prudent poultry farm management, our team should
succeed in achieving the targets set.

We therefore invite you once again, to consider the funding of this operation.

Yours faithfully,

Sridhar Gupta & Associates

Kerala Egg Co.
- Kerala, India.

Layer Farming Project Report - By

Kerala Egg Co. 11/12
Sridhar Gupta
 Layer Farming Project Report - By
Kerala Egg Co. 12/12
Sridhar Gupta