MAA DAIRY FARM LTD. PROJECT SUMMARY 01. Name of the Company: MAA DAIRY FARM LTD. 02. Status of the Company: Private Limited Company 03. Project Address : Vill-Harbayed, PO-Harbayed, PS- Gazipur Sadar, Dist-Gazipur 04. Office Address : Vill-Harbayed, PO-Harbayed, PS- Gazipur Sadar, Dist-Gazipur 05. Production Capacity: UNIT-1: DAIRY FARM Present: Milk & Calf Total Cattle: 25 High efficiency milk cows Annual Productlon: 270000 Liter Milk & 25 Calves After BMRE Total Cattle: 300 High efficiency milk cows Annual Production: 3240000 Liter Milk & 300 Calves UNIT-2: FEED MILL (Proposed) Products: Poultry, Cattle & Fish feed Annual Production: 10MTH 06. Brief Description of the Project: Bangladesh is traditionally rural and agro-based. Agricultural contributes largest share of Bangladesh economy i.e. 25% of the Gross Domestic Product (GDP) of the country. Bangladesh is country of fertile land. People are living on rice, fish & meat. Though the economy of the country is mostly depending on agriculture, but there are very few automatic feed production plants in our country. The plant for automatic feed production is a prime need of our country to meet the fast- growing demand for quality feed. It is an established fact that high quality animal protein in the form of milk and meat is extremely important for the proper physical and mental growth of human being. In Bangladesh, around 8% of total protein for human consumption comes from livestock. The current production of milk and meat is inadequate to meet the current requirement and the deficits are 85.9% and 77.4% respectively. If 5% GDP growth rate is considered then the current production of these commodities needs to be increased at 2.5 to 3.0 times by the year 2030 to feed the growing population in the country. Beef is 32 percent costlier in the country than the global average, largely due to inadequate domestic production, drop in the flow of cattle smuggled in from India and extortion from traders. Consumers pald Tk 700-750 or about $9.00 for each kg of beef in Dhaka last month when the global average price was $ 4.54 (about Tk 366) per kg, according to the World Bank (WB) Commodities Price Data released every month. This illustrates how urgent is the need to increase the production of milk and meat. Page |1MAA DAIRY FARM LTD. ‘The project named MAA DAIRY FARM LTD. has been envisaged for the welfare of the people of the Country. It is one of the successful business concern in the dairy sector and now it wants to expand {ts business collaboration. Now the company wants to set up a feed mill where international Standard feed will be produced for cattle, poultry and fish. The required capital machinery and equipment will be imported from different countries mostly from China, Turkey, Taiwan and Singapore etc. The dynamic outlook and outstanding expertise of the Managing Director along with all other sponsors will help immensely for the implementation of the project. Total estimated fixed cost of the project named MAA DAIRY FARM LTD. is BDT 11955.09 Lac and the estimated working capital is BDT 2222.22 Lac. It is expected that after successful commissioning the project will be run at 60%, 65% and 70% in the 1st year, 2nd year and 3rd year respectively and Il generate net profit (after tax) of BDT 2115.87 Lac, BDT 2762.37 Lac and BDT 3113.58 Lac respectively. 07. Cost of the Project: BDTin Lac Sn | Item Existing | Proposed Total a) | Project Land 352.00 3360.00 3712.00 b) | Building & civil construction 75.00 1836.10 1911.10 ¢)_| Imported machinery & equipment 0.00 3263.32 3263.32 d)_| Milk cow, local machinery & equipment 150.00 2229.50 2379.50 e) | Vehicles 0.00 246.00 246.00 f) | Duty & other charges 0.00 163.17 163.17 Internal freight 5.00 45.00 50.00 h) | Furniture & Fixture 10.00 150.00 160.00 i) | Erection & installation 0.00 30.00 30.00 i) | Security deposit for utilities 0.00 25.00 25.00 k) | Development cost o 0.00 0 i) Preliminary and startup expenses 0.00 15.00 15.00 Total fixed cost of the project : 92.00] 11363.09) 1195.09 Working capital requirement : 5.00 2217.22 2222.22 Total cost of the project: 597.00 13580.31 1417731MAA DAIRY FARM LTD.- 08. Means of the Finance: BDT in Lac_ St | Particulars Existing Proposed | Grand Total A) | Bank Loan y () Long term loan 116.00 6988.14 7104.14 (ii) Working Capital Loan 0.00 zaaaaa 2aaa.at Total Loan (i+ i) 116.00 9099.25 9215.25 B) | Sponsors’ Equity (i) Equity on fixed cost 476.00 4374.95 4850.95 (ii) Equity on working capital 5.00 106.11 1.41 Total Equity (i+) 481.00 4481.06 4962.06 Grand Total (A+B) 597.00 13580.31 14177.32 09, Debt-Equity Ratio: Debt-Equity ratio of the project is 19 : 81 (existing) Debt -Equity ratio of the project is 65 : 35 (after BMRE with feed mill) 10, Marketing Aspects: Beef is 32 percent costlier in the country than the global average, largely due to inadequate domestic production, drop in the flow of cattle smuggled in from india and extortion from traders. Consumers pald Tk 550-600 or about $6.60 for each kg of beef In Dhaka last month when the global average price was $ 4.54 (about Tk 366) per kg, according to the World Bank (WB) Commodities Price Data released every month. Milk is a great source of calcium and phosphorous required for healthy growth of bones and teeth, and an essential ingredient in growth and proper functioning of the body. For proper development, the recommended intake to meet a quarter of dally protein requirements is 200-250 mi of milk or 15-20g of milk powder (FAO report), However, despite more than tripling production from FYO8 to FY18, Bangladesh still faces a considerable deficiency in the market. It’s estimated that by 2021, the country will face a 6 MMT shortage (World Bank report). Based on the recommended intake of milk, domestic production is only able to make up 62.6% of the needed supply. Page | 3MAA DAIRY FARM LTD. As the livestock and fisheries industry has been growing at a steady rate of 20% for the last two decades, the demand for feed has been growing accordingly. Yearly production of feeds per year Is 27,95,040 MT which is inadequate for meeting demand, which have to be imported directly from India and China. The local production of feed and the raw materials necessary to produce the feed |s still inadequate. Considering all the prospects in this sector it can be said that the project's new Investment has immense prospect and it will certainly make profit for the company. 11, Economic Aspects: After successfully implementation, the projects will create job opportunity for 183 persons in different units. So it is sure that the projects will bring contribution to GDP. The project will contribute BDT 6034.88 Lac per year (from 3rd year) to GDP at a market value. The macro- economic effect will change the socioeconomic condition of directors, the employee and the country as a whole. Page |4MAA DAIRY FARM LTD. 12. Financial Evaluation BDT in Lac Ast year 2nd year 3rd year Capacity utillzation 60% 65% 70% Sales Revenue 17237.61 19160.02 20639.23, Gross profit 4817.82 5772.15 6279.26 Operating profit 3870.82 4716.39 5136.11 Net profit before Tax 3022.68 3946.25 4447.96 Net profit after Tax 2115.87 2762.37 3113.58 Gross profit to revenue (%) 27.95% 30.13% 30.42% Operating profit to revenue (%) 22.46% 24.62% 24.89% Net profit to sales (%) 17.54% 20.60% 21.55% Return on Investment (Rol) 31.13% 29.56% 28.81% Return on Equity (RoE) 79.80% 66.64% 52.19% Return on Assets (ROA) 17.02% 17.31% 17.47% Return on Working Capital 198.03% 108.95% 74.05% Breakeven on utilization capacity (%) 32.68% 25.80% 22.26% Break even sales 5632.65 4943.93 4594.17 Contribution to GDP 4759.40 5607.66 6034.88 Debt service coverage ratio (times) 2.66x BAS x 3.38% Interest Coverage Ratio (Times) 458 6.14 7.49 Internal rate of return (IRR) 44.78% Benefit cost ratio 1.49:1.00 Debt/Equity Ratio 65:35 Total Loan Period 85 years including 18 months moratorium period Interest Rate 9% on LTD & 9% on W/C loan Per Capita Investment & Employments Tk.65.11 Lac 183 Nos. 413. Financial Institutions applied for Loan: Local/foreign financial institutionMAA DAIRY FARM LTD. 14. Conclusion and Recommendation: As the country Is facing serious problems for unsafe and adulterated meat and milk, this kind of technology based modern farming is necessary to produce safe food. This company named MAA DAIRY FARM LTD, has come forward to setup this type of agro based industry considering the Present & future marketing prospects. We have to be self-dependent for our meat nutrition. Besides the demand of quality feed for poultry, cattle & fish has huge and has deficit in the market. The detail financial forecast shows that the project is a viable considering all aspects. The sponsors are educated and experienced in various leading business. They are financially sound and have the real capacity to control all the aspects and efficiency in management. Therefore it can be concluded that the project has immense potentials for investment and the bank/financial institutions may consider loan assistance to implement the project successfully so that the project can bring contribution to the ultimate development of the country. Page | 6