MINOR PROJECT REPORT

Done at

SRI GOVINDAN DAIRY AGENCIES

Submitted by

VIJAYADARSHINI.V
20397133

DEPARTMENT OF MANAGEMENT STUDIES

School of Management, Pondicherry University,

Puducherry–605014.

MARCH 2021 – MAY 2021

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 ACKNOWLEDGEMENT

The entrepreneurship project has been a very good experience for me in the way
that it has given me the chance to obtain a great insight on the entrepreneurial
activities. I’ve learned about the different activities carried out by an
entrepreneur and my self-confidence and interpersonal skills have improved
significantly.

Firstly, I would like to express a deep sense of gratitude to The

Head of Department, Dr. B. Charumathi for providing me such an opportunity
and helping me to utilize the winter holidays in an effective manner.

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 DECLARATION

This is to certify that this report of a “FIELD BASED

ENTREPRENEURSHIP PROJECT” is submitted by me as a part of the
requirements for the degree of Master of Business Administration,
Department of Management Studies, School of Management, Pondicherry
University, Puducherry.

I declare that this is an original record of an Observation Study on an

entrepreneurial venture, conducted by me during the period of 01 APRIL 2021
to 14 APRIL 2021.

DATE: 16 JUNE 2021 NAME: VIJAYADARSHINI. V

PUDUCHERRY SIGNATURE:

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 ABSTRACT

An entrepreneur has been defined as a “person who starts, organizes and

manages any enterprise, especially a business, usually with considerable
initiative and risk. “Rather than working as an employee, an entrepreneur runs a
small business and assumes all the risk and reward of a given business venture,
idea or good or service offered for sale.

Dairy Farming is a type of agri – business involved in the production of milk

from domestic animals. The plant which processes milk & produces milk
products are called dairy plant or dairy. Animals which are used for milk
production in the dairy farm are called dairy animals.

SRI GOVINDAN DAIRY AGENCIES was formed by entrepreneur who has

a vision of providing FRESH COW MILK in reasonable price with the best A2
quality and to increase the satisfactory level of the customers. This shows how
to start a dairy farm and some tips on how to run it.

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 CONTENT

SL.NO PARTICULARS Pg.no

1. Introduction 7
2. Company Profile 7
3. Objectives 8
4. Journey of the owner 8
5. About the company 8
6. Scope and its national importance 9
7. Beliefs in dairy business 9
8. The main cost in dairy farming 10
9. Calculating capital investment 11
10. About the products 11
11. Recruitment methods 12
12. Fodder management 13
13. Farm practices 13
14. About packaging 14
15. Maintaining finance 15

SL.NO PARTICULARS Pg.no

16. Marketing strategy 15

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17. SWOT Analysis 15
18. Future plans 15
19. Calculation of average days in milk and dry 16
20. Calculating operational / recurring expense for 16
a year
21. Calculation of income for a year 17
22. Calculation of profit for a year 18
23. conclusion 18

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1. INTRODUCTION:

I have done my field based organisation study in “SRI GOVINDAN DAIRY

AGENCIES”. It is a small scale dairy farm at THEAYANGAITHITTU, PUDUCHERRY.
India’s dairy market furnishes remunerative and impactful opportunities. A
growing market that is assured for success, this report describes the factors
that are fuelling the growth of dairy farming business. This report also
discusses the challenges, opportunities and insights learnt from the
organisation.

2. COMPANY PROFILE:

NAME Sri Govindan Dairy Agencies

OWNER Mrs. K.Buvaneswary

NATURE OF THE BUSINESS Dairy Production

LEGAL STATUS OF THE FIRM Proprietorship

TOTAL NUMBER OF EMPLOYEES 3

CAPITAL RS.20, 00,000

ADDRESS Fishing harbour road, Near Mahadevi temple,

Thengaithittu, Puducherry- 605004.

YEAR OF ESTABLISHMENT 2020

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3. OBJECTIVES OF THE ENTERPRISE:

 Best quality A2 milk

 Best service for their customers
 Developing the farm by timely breeding(1 calf for one cow every year)

4. JOURNEY OF THE OWNER:

The company was started by Mrs K Buvaneswary a year ago. She got this
initial idea to start the small dairy unit by her own interest to provide good
quality milk to her family and peer groups.

With his she expanded her business within a short span of time and
captured the market within a year. She considers their best quality and service
as their strength.

5. ABOUT THE ENTERPRISE:

The farm was started a year ago at Puducherry, SRI GOVINDAN DAIRY
AGENCIES is known for their best quality A2 milk .This small dairy unit is a
proprietorship based unit. Under the management of Owner
Mrs K Buvaneswary, the dairy unit have achieved a perfect position in
the local.

Their aim is to ensure that the safety and quality of their raw milk satisfy the
highest expectation of their consumers. They also ensure that the milk is
produced by the healthy animals by keeping check on their milking hygiene
and nutrition (feed and water). Their infrastructural unit is well furnished with
required tools, equipment’s, and machinery to ease their production capacity.

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The features for the dairy unit received appreciation from their customers are:

 Best quality
 Reasonable price
 Timely delivery

They are also engaged in providing some milk by-products along with raw
milk to the customers.

6. SCOPE FOR DAIRY FARMING AND ITS NATIONAL IMPORTANCE:

India is endowed with the largest livestock population in the world. It

accounts for about 57% of the world’s population and 15% of the cattle
population. The value of output milk is Rs.2, 83,000 crore in 2020-21. India’s
milk production increased from 198.4 MMT in 2019-20 to 208 MMT in 2020-21
and planning to produce 240 MMT by 2023-24. The percapita availability of
milk in India during 2020-21 was 428gm/day and by 2023-2024, it is estimated
to increase to 592 gm/day. To achieve this, milk production has to be increased
around 4% additionally per annum. Thus, there is a tremendous scope/
potential for increasing the milk production through profitable dairy farming.

Central and State Government are giving considerable financial

assistance for creating infrastructure facilities for milk production under
various development schemes.

7. BELIEFS IN DAIRY BUSINESS:

Dairy farming (as a business); keeping large number of animals has

started a year ago but is picking up very fast due to its several advantages viz.

 Steady business with steady income unaffected by Recession.

 Milk can be sold directly from the farm (no marketing setup needed)
 No brokers; price is already declared by the Government.
 Selling rate of milk has been consistently increasing over a period of
time.
 Consumption accepted by all religions, caste & creed.
 The initial investment in dairy farming business is low in comparison to
other industries.
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 Though it has several advantages it also suffers from following
constraints:

 Milk is a perishable product need early marketing / preservation.

 Trained and experienced person is needed for management. The success
of the dairy farm depends on timely breeding and proper feeding and
disease control.

8. THE MAIN COSTS IN DAIRY FARMING ARE:

Capital cost: For purchase of animals, construction of shed & purchase of

machinery and equipment, etc. This cost occurs only once & is depreciable
over a period of time totally.

Administrative cost: includes appointment of supervisor, skilled and unskilled

labours depending upon the requirement as well as the size of the farm. This is
fixed cost for the certain period.

Recurring cost: includes the feeding and management along with vaccination,
insurance, treatment and other miscellaneous costs. This is required daily and
is liable to fluctuate at all times. It will be essential to control these costs which
will have a direct bearing on the production of milk as well as Reproduction. At
the same time balancing of feed will also determine the reduction of the Inter
calving period which has a bearing on total profitability.

9. CALCULATING CAPITAL INVESTMENT:

NON RECURRENT NO.OF UNITS COST PER UNIT TOTAL

COSTS
No of animals 20 40000 8,00,000
5year lease land Half acre 5,00,000
Cost of 3,00,000
construction of
animal shed
Floor and store 65,000
room
development
Cost of the 50,000
equipments
Water bore & tank 50,000

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Cost of milking 1 1,35,000 1,35,000
machine and
chaffer cutter;
standby power
supply
Total non recurring costs / capital investment 19,00,000

10. ABOUT THE PRODUCTS:

Sri Govindan dairy agency is a small dairy unit producing milk and its by-
products. Their products are widely demanded by the consumers & can easily
buy these products at an affordable price. They are not only organic, but also
farm fresh and are delivered directly at the doorstep of the consumers .The
products are:

Native cow milk:

Natural A2 Milk/Fresh Farm Milk – Rs.45 per litre.

Native cow milk is naattu maattu paal, which are indigenous breeds of cows.
These cows usually have humps and identified with that. Desi cow is known to
be healthier and easily digestible than normal (A1) milk. This is popularly
known as A2 variety and doesn’t have the compound that breaks down into
the harmful peptides like in A1 milk. It has good nutrients which can fight
germs and increases immunity.

Fresh paneer:

Natural A2 Paneer – Rs.130/250gm

Paneer is freshly made from native A2 cow milk without any preservative. It is
completely unique in taste and is a great source of calcium and nutrients which
can fight germs and increase immunity. It must be refrigerated immediately
and used within a week for better taste.

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A2 Curd

Natural A2 Curd – Rs.60/per litre.

A2 Curd is freshly prepared from the native cow milk without any preservative.
It is rich and creamy in texture and tastes original. It must be refrigerated to
preserve and consumed within 24 hrs from delivery.

11. METHODS OF RECRUITMENT:

As this is a small dairy they recruit both skilled and unskilled labour. They
work with cows and produce related products.

After appointing the labours they will be trained to operate the milking
machines and equipments.

They also recruit both ladies & gents for cleaning animal sheds, caring the
animals, arranging for fodder & medical care. They are often in charge of
regular milking.

12. FODDER MANAGEMENT:

Fodder is chaffed before feeding, to avoid wastage and increase

digestibility. The cows must be given feed a maximum of 2 to 2.5% of body
weight per head daily.

Feed alone constitutes 60% of the production cost of the milk. Hence
feeding management plays a vital role in farm economy. The nutrient
requirement should be determined for maintenance as well as for milk
production and to meet the fat percentage in milk and gestation.

The following are the monthly procurement:

Concentrated feed – Rs. 35,000/per month

Grass – Rs.1500 /per week

Straw – Rs.10, 000 / per month

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These feeds are procured from some local companies as per the agreement
with those companies. Usually they have a deal with the company that the
feed will be purchased monthly as per the agreement and if they need an extra
feed they will be purchased as and when required and there will be no delay in
getting those feeds.

The feeds, grass and straw are well maintained in the storage area and
they will be utilized as per their need.

13. FARM PRACTICES:

Milking hygiene:

They milk their selective cows in hand, often in presence of the calf to
simulate milk release. For other cows they use their milking machines as
convenient to the animals. Irrespective of the milking method (hand or
machine), it is crucial to avoid contamination of the milk during and after
milking.

Good dairy farm practices are followed to ensure that milking routines
do not injure the animals or introduce contamination to the milk; that milking
is carried out under hygienic conditions; and that milk is handled properly after
milking.

The ladies recruited in the farm, boil the milk and process the milk into
curd and paneer in traditional method (home cooking style).

Farm cleaning and disinfecting:

The farm is cleaned every two hours by the employed lady. She collects
all the cow dung and washes out the floor. This can further lower the risk of
spreading infection.

Animal welfare:

Animal welfare is the application of sensible and sensitive animal

husbandry practices to the dairy animals on a farm. These practices are applied

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not only to milk producing animals but also young stock, replacements and
males in rearing units.

Animal welfare is primarily concerned with the well being of the animals.
Dairy farming practices should aim to keep animals free from hunger, thirst
and malnutrition; from discomfort; from pain, injury and diseases; from fear;
and to engage in relatively normal patterns of animal behaviour.

Guard dogs:

They also have two dogs to protect their livestock from dangerous
animals and reptiles. Dogs will alert potential danger by barking. They have
keen sense of sight, smell, and hearing and can sense a threat before you can.
Mice and rats have the habit of getting into the feed , these dogs will frighten
them away.

Socio economic management:

Social responsibility and economic sustainability are integral to good

dairy farming practice, as they address two key risks to the farming enterprise.

Human resource and financial management ensure the sustainability of the

enterprise. Good dairy farming practices for the socio-economic management
of dairy farms are implementing effective and responsible management of
human resources; ensuring that farm tasks are carried out safely and
completely; and managing the enterprise to ensure its financial viability.

Veterinarian’s role:

The Veterinarians play a vital role in fertility management on dairy farms

evolving from addressing individual clinical conditions like treating them when
they are sick, test for and vaccinate against diseases.

Artificial insemination:

This enterprise follows artificial insemination technique. It is one of the

important reproductive technologies implemented by the dairy industry.
Artificial insemination reduces the incidence of sexually transmitted diseases
among the cattle as well as increases the use of genetically superior series to
improve performance of the herd.

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14. ABOUT PACKAGING:

The finished products (milk, curd and paneer) are packed in a plastic
cover and sealed twice with the sealing machine. The employees in the
company are there to pack the produced products.

They pack the products according to the size required by the consumers
and the new employees will be given training for doing the work.

They pack the products and supplied it to the consumers through road
transport at their doorstep.

15. MAINTAINING FINANCE:

In this company all the finance details are maintained by the Owner
directly.

All the purchase transactions are maintained by the owner and sales
transactions are maintained by the accountant of the company and all the
related suggestions will be given by them only. And one staff is working as
admin and properly maintained everything manually and technically.

The enterprise is getting Break Even Sales (BEP). And they are trying to
increase their profit by increasing their production level.

16. MARKETING STRATEGY:

The enterprise does not follow any kind of marketing strategy. They
consider customer satisfaction which they attained by their production of best
quality of products with the reasonable price in the market as their strength.

Their farm is also located near the town and this strength makes them
to sell their products in the local and within a short period of time as a tool to
capture local market.

The way they get their customers is through word of mouth and
they also sell their products on credit basis to get their customer satisfaction.

17. SWOT ANALYSIS:

SWOT Analysis play an important role in making the decisions. Before

making any decision, one should carefully analyze the associated risks factors
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& must consider the following critical aspects, which form the basis of any
investment decisions.

SWOT ANALYSIS OF SRI GOVINDAN DAIRY AGENCIES:-

STRENGTHS:

 Good milk quality

 Reasonable price
 Full family involvement, devoted & hardworking sector
 Location

WEAKNESS:

 High production cost

 No or low level of research work and pedigree record keeping

OPPORTUNITIES:

 Value added dairy products are in demand

 Dairy products need are much higher than supply

THREATS:

 High level of disease in live stock

 Imbalance between the price of input and output

18. FUTURE PLANS:

 Their future plan is to increase the production level by rearing and

buying more cows.
 And they are also going to produce a printed packing for their products.
 Currently they are selling the cow dung as manure to farmers and
generate income.
 They also plan to process this cow dung to vibhuti, packed manure,
agarbhatti, vermicompost, dish washer, mosquito repellent etc.

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19. CALCULATION OF AVERAGE DAYS IN MILK AND DRY:

Wet: Dry cow = 80:20

Calculation for one year

1. Milch cows in days – 16 * 240 = 3840 days

2. Dry cows in days – 4 * 365 = 1460 days
3. Milk yield/cow/day = 10 litre
4. Total milk yield = 38400 litre
5. Selling price of milk = Rs.45

20. CALCULATING OPERATIONAL/ RECURRING EXPENSE FOR ONE YEAR:

S.no parameters Expenditure(Rs)

1 Feed for milch cows 582000
5820*Rs.100
2 Feed for dry cows 1460 * 80300
Rs.55
3 insurance 40,000
4. Medicine Rs1000/cow + 50,000
ved.cost
5. A/I cost @ 12,000
Rs.300/cow/conception
6 Labour charges 2,88,000
3*8000*12
7 Depreciation charge for 60,000
shed and equipments,
milking machine,
building @ 10%
8 Delivery expenses 73,000
9 Electricity charges 50,000
10 miscellaneous 20,000
Total expenditure – Rs.12, 55,300

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21. CALCULATION OF INCOME FOR A YEAR:

s.no parameter Income (Rs)

1 Sale of milk 17,28,000
3840*Rs.30/kg
2 Farm yard manure 24,000
3 Other income from by- 12, 000
products
Total income 17,64,000

22. CALCULATING PROFIT FOR A YEAR:

1. Annual profit = income – expenses

Rs.17, 64,000 – Rs. 12, 55,300

=Rs.5, 08,700.

2. Profit / month = Rs.42, 392

3. Profit / month / cow = Rs. 2120.

23. CONCLUSION:

Sri Govindan dairy agencies is one of the reputed manufacturers of the

dairy products. They are providing best quality services in compared to their
competitors in the local market.

This study makes me to understand how the dairy units are functioned
and how the milk is processed to make its by-products. I also learnt their
development from the initial stages to the level they achieved now, the
problems faced by them during their growing stages.

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