Project Report of Dragon Fruit

Project Report
On
Dragon Fruit & Cattle Farming (Cow & Buffalo)
Submitted by:
Unique Vision Agro Investment Private Limited.

Corporate Office:
Ward no-10, Safalata Marga, Mid Baneswor Kathmandu
Contents
CHAPTER ONE ..................................................................................................................................................................................... 5
INTRODUCTION OF BUSINESS .......................................................................................................................................................... 5
1.1 Background ........................................................................................................................................................... 5
1.2 Business Profile and Current Status......................................................................................................................... 6
Company's current work status ........................................................................................................................................... 6
Reason for farming ............................................................................................................................................................ 8
1.3 Company Mission ..................................................................................................................................................... 9
1.4 Company Objectives ................................................................................................................................................. 9
1.5 Keys to success ........................................................................................................................................................... 9
1.6 Capital Investment required for the Project...................................................................................................................... 9
CHAPTER TWO .................................................................................................................................................................................. 10
MARKET, CLINTS AND COMPETITORS ........................................................................................................................................... 10
2.1 Description .......................................................................................................................................................... 10
Milk marketing and market structure .................................................................................................................................. 14
Market performance and drivers of commercialisation ..................................................................................................... 14
Market analysis................................................................................................................................................................ 17
!Unexpected End of Formula
2.3 Competitors ......................................................................................................................................................... 18
2.4 Marketing strategies ............................................................................................................................................. 18
2.5 SWOT analysis…………………………………..…………………………………………………………………………..19
CHAPTER THREE .............................................................................................................................................................................. 20
TECHNICAL ASPECTS....................................................................................................................................................................... 20
3.1 Project Location and Infrastructure ........................................................................................................................ 20
3.2 Supply chain Management.................................................................................................................................... 20
3.3 Project capacity ................................................................................................................................................... 20
CHAPTER FOUR ................................................................................................................................................................................ 22
FINANCIAL ANALYSIS ....................................................................................................................................................................... 22
4.1 Financial Estimation ............................................................................................................................................. 22
4.2 Investment structure ............................................................................................................................................. 22
4.10 Loan payment schedule........................................................................................................................................ 23
4.12 Major financial ratios ............................................................................................................................................ 24
CHAPTER FIVE .................................................................................................................................................................................. 25
ENVIRONMENTAL ANALYSIS AND GOVENRMENT POLICIES ...................................................................................................... 25
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5.1 Impact of business in society................................................................................................................................. 25
5.2 Impact of Business in environment ........................................................................................................................ 25
5.3 Government Policies ............................................................................................................................................ 26
CHAPTER SIX ..................................................................................................................................................................................... 27
CONCLUSION & RECOMENDATION ................................................................................................................................................ 27
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Project Summary
1. Name of Project : Unique Vision Agro Investment Private Ltd
2. Location :
a. Corporate Office : Ward no-10 Safalata Marga, Mid Baneswor
b. Project Area : Ward no-3 Ranjani Kajiman Chok
Rangeli Nagarpalika Morang
3. Type of Project : Livestock and Dragon Fruit
4. Employment : 12
5. Working Days : 365
6. Total Project Cost : 211,864,463

Fixed Capital : 164,062,500
Working Capital : 47,801,963
7. Bank Finance : 150,000,000

Long Term Loan 111,758,429
Short Term Loan 38,241,571
8. Equity Finance : 61,864,464

Fixed Capital : 52,304,071
Working Capital : 9,560,393
9. Sales Revenue (Initial Year) : 67,980,600

10. Operating Cost :(initial Year) 115,090,666
11. Net Profit (2nd year) : 40,960,092
12. Average Break Even Point(%): 19%
13. NPV (5th Year) 6,789,859
14. IRR (5th Year) 13%
15. ROI (5th Year) 33%
16. Payback Period (Years) 4.48 Year
17. BCR ( Average) 1.45
18. Average DSCR 2.29
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CHAPTER ONE
INTRODUCTION OF BUSINESS
1.1 Background
Nepalese economy is dominated by the agriculture sector as most of the people are involved in this sector but
only at a subsistence level. Agriculture sector covers 15% stock in the national income. In agriculture sectors too,
almost 15% is covered by the livestock. Milk, eggs, milk, leather, feather etc are the major part of the livestock
business. Among different livestock farming cattle, buffalo, sheep, cow etc are popular in Nepal. Cow farming is
an important component of mixed farming system which contributes significantly to the Nepalese economy.
Rearing cows is a profitable business. Generally cow farming means rearing cows for the purpose of milk.
Besides cow farming is evolving as one of the most profitable agriculture business in the current agricultural
scenario of Nepal. The consumption of milk has been increasing annually thus expanding the market of the cow
husbandry.
Dragon fruit is a cactus species which is indigenous to Americas belongs to Genus Hylocereus. Dragon fruit is
commonly known as Noble woman, Pitahaya, strawberry pear, Super fruit etc. It has antioxidant properties which
prevents oxidation of cholesterol. Similarly, dragon fruit contains phytonutrient, minerals and vitamins which are
beneficial to blood, tissue, bone and overall health. On research it was found out that Lycopene which is
responsible for red colour in dragon fruit has been linked with a lower prostate cancer risk. Nowadays it is widely
used in restaurant as fruit salad, refreshing drinks, Jams, Ice creams, Jelly, fruit juice, wine etc. In Nepal, Mr.
Jagannath Rai brought dragon fruit from USA in 2057 B.S. and later Gorkha Millenium multipurpose cooperatives
ltd formally started cultivation of dragon fruit in commercial level from 2070 B.S (2013 A.D). In Nepal there is a
wide scope for cultivation as it can cultivate in region of less rainfall at altitude of 1500 from MASL. Availability of
Fallow and marginal lands of Terai, Bhitri madhes, valleys and lower range of mountain are suitable for
cultivation. Moreover, there are great possibilities of production of organic dragon fruits. Inspite of various benefits
and possibilities, farmers' condition and investment are major challenges for exploration of dragon fruit in Nepal.
For the first time in Nepal Veterinary Doctor Mr. Jagannath Rai brought dragon fruit from USA through his friend
in 2057 B.S. for the decade it is just in information. Gorkha Millenium multipurpose cooperatives ltd formally
started cultivation of dragon fruit in commercial from 2070 B.S (2013 A.D) . Nowadays, commercial cultivation of it
going in jhapa and dhankuta district of Nepal but just for trial. 5.0. Scope in Nepal Dragon fruit is famous in
Vietnam, Thailand, Israel and Srilanka. In Nepal commercial cultivation is just in starting phase. Present market
price of this fruit in Nepal is Rs 800 to 1000 per kg (7.16$ to 8.95$) . This fruit can cultivate in region of less
rainfall at altitude of 1500 from MASL. There are availability of thousand of fallow and marginal land in Terai,
Bhitri madhes, valley and lower range of mountain which are suitable for cultivation. The chemical fertilizer
demand of Dragon fruit is less. Nepalese farmers are unable to effort chemical fertilizer in higher altitude. So, we
could grow organically using our local manures like FYM, Compost, vermicompost which results into economical
and eco-friendly production. Moreover, Organic dragon fruit can considerably raise price received for it . In spites
of having various benefits and advantage still as underutilized crops and considered as fruit for future . Dragon
fruit add value of agro-tourism. Dragon fruit has great importance in Nepal as it is beneficial for Small landholder
marginal farmers and to improve livelihood of them. It may become the good foreign currency earning ways in
future. So, dragon fruit is fruit for future Nepal.
Cow is one of the well-known animals which have been closely associated with human livelihood. Most of the cow
breeds in Nepal have similar origin especially in areas having similar ecological zones to India. At present, cow
farming has become a profitable business and it has multiple utilizes. Commercial cow farming is contributing
significantly to the economy and nutrition of a country. Cows are multi-purpose animal and play a significant role
in the economy and nutrition of landless and small and marginal farms in the country. We can get a wide variety
of products from cows, such as milk, manure etc. Cow milk is used for producing full cream cow powder,
skimmed cow milk powder, cow butter, cow milk cream, fresh cow milk, ghee, curd, etc. As per the DDC website
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total milk production of 6,12,07038 liters of milk was produced (2070/2071) and sales was 60,342,817 for the year
2070/71. As per the study conducted approximately 1.35 million metric ton of milk is produced annually. Primarily
cow and buffalo milk are consumed, which are used for producing full cream cow powder, skimmed cow milk
powder, cow butter, cow milk cream, fresh cow milk, ghee, curd etc.
At present, the milk production per year in Nepal is 1800000 MT (MOLD, 2016) of which 20% goes to market
from formal sector and rest 80% is sold in local markets and used for household consumption. Of the total
milk produced, 70% is obtained from buffaloes and 30% comes from cows.
As a result of the 2018 ban of SMP imports, the dairy and other associated industries have been struggling to
keep up with consumer demand, especially during the lean14 season. Converting raw milk into SMP is an
important strategy for dealing with oversupply of milk in the flush season and covering some of the deficit in the
lean season. This was an important driver for the success of Amul15 in India. Further studies are needed to
assess the impact of such a ban in greater detail. Specifically, a study will need to assess whether private
businesses see this as an opportunity to expand SMP processing.
National context
Dairy production is spread across all Districts in Nepal. Most milk production is carried out under traditional
production systems in mixed farming systems with small non-commercial holdings16. However, in recent years
there has been a push to commercialise dairy farming.
Sector growth scenario
Among the 3.8 million farming households in the country, 95% have dairy animals. Most of these farmers are
producing for household consumption, with only about 500,000 farming households engaged as both producers
and sellers17.
1.2 Business Profile and Current Status
Name of company
Unique Vision Agro Investment Private Limited.
Address Ward No. 10, Mid Baneswor, Nepal

Type of Business Private Limited
Registered organization Office of company Register (290595/078/79)
PAN of the Company 610282412
Name of contact of the Shareholder Mr. Madhukar Luitel
Area Covered 17 Bigha
Company's current work status
The company has been running as Unique Vision Agro Investment Private Limited. at Ward no-2, Namobuddha
Nagarpalika, Pipalchour Kavre consisting dragon fruit, cow and buffalo farming. The project is running
successfully since couple of years. The owner of this company is quite confidence with the project due to its
satisfactory financial returns. Again the shareholder of this company has been involved successfully in livestock
farming containing cow and buffalo in Dhunibeshi Dhadhing. There are 59 cows and 31 buffalos in the
Dhunibeshi farm.
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Cows and buffalos in the Dhunibeshi farm.
Now the project is planning to extent its project with same component in Rangeli Nagarpalika Morang too.
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Proposed Project
In live with company's mission, vision and objective, the company has already started its operation. The owner of
the company started the company earlier by registering the company in Office of Company Registrar. 17 Bigha of
land will be used for the farming purpose. The company has allocated 16 Bigha of land for Dragon fruit farming
and other and has been allocated for the development for livestock farming and grass cultivation. The company
currently has 3 farm staff and 10 regular and seasonal workers excluding the owner of the company. The farm is
under development phase where more than 250000 kg of dragon fuit will be yield from 17000 pillers. Again100
numbers of cows and 50 numbers of buffalo will be in lactating periods. The farm has been also collecting milk
locally as well as the milk produced in-house is sold through its existing milk sales outlet.
Phase of operation & production Cow 100 and 50 buffalo

Human Resources the company will have employees 3 farm staffs and 10
seasonal workers excluding the owners
Source of investment NRs. 5 crore will be from financial institurion and rest will be
equity participation
Reason for farming
The company from the time of its establishment set aside targets and goals that are realistic, sustainable and
implementable. With these plans and course of action set, the company has carried out work as per these set of
goals. As there has been increased in demand for Dragon fruits, milk and milk products, the company will need
additional capital in form of term and working capital loan for further project inplementation. The company intends
to carry out its planned activities as soon as possible to reap the benefit of the current market demand.
The company has allocated land in planned manner to facilitate dragon fruit and livestock farming and grass
cultivation in 17 Bigha of land. As the current and projected capacity has been shown in table below:
Particulars Projected Capacity Remarks

Dragon Fruits 255000 Kg. per year To be planted
Numbers of Cow & Buffalo 150 To be purchased
Average Milk Production 1500 Liter per day
The another very important factor that motivates the investors to invest in this farm is that the Company is
situated in center location from major market of the Rangeli, where consumption in terms of fruit milk and milk
products is so high that they have to highly depend upon the import of milk and milk products in this area. Hence,
it would not be any problem or threat of market scarcity in terms of fruit, milk and milk products production.
The company plans to make further investment in the field of milk and milk products as the government has
projected deficit of milk and milk products in Nepal. Due to which the use of powder milk has risen and imports as
well has risen. After careful study of market demand and supply, publications published by government the
company has come to conclusion for the need of extension of the current company operation so as the capitalize
the current scenario and to benefit from the additional introduction of capital in its business structure.
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1.3 Company Mission
Mission statement of this company is "to be established as commercially successful livestock/ farm".
1.4 Company Objectives
Following are the objectives of this company;
• To do profitable drogon fruit and dairy farming business as per the market needs and demand,
production of dragon fruits, dairy milk and it's by products as well as producing cross breed cows.
• To supply quality fruit and milk products in the market
• To carry out other necessary dairy farming related research activities
• To develop the local level production.
1.6 Keys to success

The company has some unique selling propositions (USP) which make this company not only different from
others but also fuel for success in the market. Those keys to success are:
• Well planned business ideas.

• Well experienced knowledge
• Dedicated staffs
• Already established market network.
• Modern methodologies being applied
• Scientific techniques applied in cow rearing and breeding
1.6 Capital Investment required for the Project

The company plans to introduce additional investment in this farm. The additional investment shall be done in
following ways and the source for the investment will be both equity and loan in following heads.
Total Equity Bank

SN Items
Amount Finance Loan
A Fixed Asset Investment 147,062,500 46,297,774 100,764,726
Debt Equity Ratio 100% 31% 69%
B Working Capital Investment 61,544,092 12,308,818 49,235,274
C Total Investment 208,606,592 58,606,592 150,000,000
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CHAPTER TWO
MARKET, CLINTS AND COMPETITORS
2.1 Description
Dragon Fruit
Dragon fruit is a cactus species which is indigenous to Americas belongs to Genus Hylocereus. Dragon fruit is commonly
known as Noble woman, Pitahaya, strawberry pear, Super fruit etc. It has antioxidant properties which prevents oxidation of
cholesterol. Similarly, dragon fruit contains phytonutrient, minerals and vitamins which are beneficial to blood, tissue, bone
and overall health. On research it was found out that Lycopene which is responsible for red colour in dragon fruit has been
linked with a lower prostate cancer risk. Nowadays it is widely used in restaurant as fruit salad, refreshing drinks, Jams, Ice
creams, Jelly, fruit juice, wine etc. In Nepal, Mr. Jagannath Rai brought dragon fruit from USA in 2057 B.S. and later Gorkha
Millenium multipurpose cooperatives ltd formally started cultivation of dragon fruit in commercial level from 2070 B.S (2013
A.D). In Nepal there is a wide scope for cultivation as it can cultivate in region of less rainfall at altitude of 1500 from MASL.
Availability of Fallow and marginal lands of Terai, Bhitri madhes, valleys and lower range of mountain are suitable for
cultivation. Moreover, there are great possibilities of production of organic dragon fruits. Inspite of various benefits and
possibilities, farmers' condition and investment are major challenges for exploration of dragon fruit in Nepal.
Dragon fruit is a climbing vine type of Cactus species indigenous to Americas [. It is commonly nicknamed as ''Noble
woman" and it was believed that by eating it one became empowered with same strength of a dragon. Dragon fruit belongs
to Genus Hylocereus . Dragon fruit is called as the most beautiful in cactus and others names of it are Pitahaya, strawberry
pear, papipi pua. Pitahaya is cultivated and well established in Southeast asia (Vietnam, Taiwan, China, Israel, Malayasia),
Australia, Florida and others tropical and subtropical regions of world .
Dragon fruit rich in antioxidants , contain phytonutrient , 12 different minerals and vitamin (vit C as equivalent to 10 % of
daily value and several B vit). An antioxidant property prevents oxidation of cholesterol. Due to antioxidants properties
people often called dragon fruit as a "super-fruit". It contains minerals like Iron, phosphorus makes healthy blood and tissue,
Ca present in it makes strong bone & teeth . Lycopene which is responsible for red colour has been linked with a lower
prostate cancer risk Similarily, it provides Essential fatty acid. It was found that seeds of dragon fruit are best for providing
omega-3 and omega-6 fatty acid that reduces cardiac stress . Not only in human health, it is widely used in restaurant as
fruit salads , best eaten chilled or blended into refreshing drinks also. Jams, Ice creams, Jelly, fruit juice, wine etc are
dragon fruit-eating products.
History
For the first time in Nepal Veterinary Doctor Mr. Jagannath Rai brought dragon fruit from USA through his friend in 2057
B.S. for the decade it is just in information. Gorkha Millenium multipurpose cooperatives ltd formally started cultivation of
dragon fruit in commercial from 2070 B.S (2013 A.D) . Nowadays, commercial cultivation of it going in jhapa and dhankuta
district of Nepal but just for trial.
Scope
Dragon fruit is famous in Vietnam, Thailand, Israel and Srilanka. In Nepal commercial cultivation is just in starting phase.
Present market price of this fruit in Nepal is Rs 800 to 1000 per kg (7.16$ to 8.95$) . This fruit can cultivate in region of less
rainfall at altitude of 1500 from MASL. There are availability of thousand of fallow and marginal land in Terai, Bhitri madhes,
10
valley and lower range of mountain which are suitable for cultivation. The chemical fertilizer demand of Dragon fruit is less.
Nepalese farmers are unable to effort chemical fertilizer in higher altitude. So, we could grow organically using our local
manures like FYM, Compost, vermicompost which results into economical and eco-friendly production. Moreover, Organic
dragon fruit can considerably raise price received for it . In spites of having various benefits and advantage still as
underutilized crops and considered as fruit for future . Dragon fruit add value of agro-tourism. Dragon fruit has great
importance in Nepal as it is beneficial for Small landholder marginal farmers and to improve livelihood of them. It may
become the good foreign currency earning ways in future. So, dragon fruit is fruit for future Nepal. 6.0.
Challenges
For cultivation, initial investment is higher as compare to others crop. Normal Nepalese farmers are unable to invest huge
money because agriculture itself a risk business. So, government must provide subsidy, training, related various extension
works through NARC, INGOs, NGOs for better result.
Technical Analysis
Temperate fruits: Apple, walnut, apricot

Sub-tropical fruits : grape, citrus, Pear, peach, Pomegranate, persimmon, kiwi etc.,
Tropical fruits: mango, banana, papaya,dragon fruit, Litchi, Pineapple, jack fruit etc.
Uses (By products)
• Jams
• Ice cream
• Jelly production
• Fruit juice
• Wine
• Face packs
Nutritive value per 100 g of dragon fruit:
Principle Nutritive value
Moisture 85.3 %
Protein 1.10 mg
Fat 9.57 mg
Crude fiber 1.34 mg
Energy 67.70 Kcal
Carbohydrate 11.2 mg
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Glucose 5.70 mg
Fructose 3.20 mg
Vitamin C 3.00 mg
Principle Nutritive value
Vitamin A 0.01 mg
Niacin 2.80 mg
Calcium 10.20
Iron 3.37
Magnesium 38.90
Phosphorus 27.75
Potassium 272.0 mg
Sodium 8.90 mg
Zinc 0.35 mg
Different types of dragon fruit in Indian Sub-continent
i) Red skin, white flesh: Hylocereus undatus, mainly from Thailand and Vietnam
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ii) Red skin, red flesh: Hylocereus polyrhizus, come mainly from Israel and Malaysia.
ii) Red skin, purple flesh: Hylocereus costaricencis, from Guatemala, Nicaragua, Ecuador, and Israel.
iv) Yellow skin, white flesh: Hylocereus megalanthus, from Colombia and Ecuador.
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Livestock
Dairy provides employment for 130,000 people and contributes 9% of Nepal’s GDP as well as 33% of AGDP1.
The sector is dominated by a vast number of small-scale subsistence production units and micro and small
collection-and-processing units, as well as a limited number of large-scale industrial processing units. However,
there is a growing presence of SME actors responsive to emerging commercialisation trends.
Among the 3.8 million farming households in the country, 95% have dairy animals because of the key role they
play in household subsistence and nutrition, the provision of draft power and local transport. However, most
households produce mainly for home consumption with some flush season sales. Only about 14% of milk
producing households (i.e. 500,000) are both producers and sellers.
Production is characterised by flush/surplus and lean/deficit seasons, while milk prices have long been regulated
to protect the small producer. With an average daily supply shortfall of 550,00 litres, there is significant scope for
smallholders to step up.
While SMEs face various challenges in accessing commercial finance and investment to exploit opportunities,
there is an emerging investment landscape including incubators for supporting the investment readiness of agri-
businesses.
Milk marketing and market structure

The market structure for dairy products may be separated into two three segments: the rural or information
component, the urban or formal component, and the export market component. The rural component of dairy
marketing comprises the over 90-% of farm households with dairy animals where most of the milk produced is
consumed within the households either in the firm of fresh milk (usually boiled) or in the form of traditional dairy
products. Some products are traded directly with consumers (raw milk) or through traditional collecting agents for
consumption in urban areas or export to India.
In the urban component of dairy marketing, most of the dairy products consumed in households and at
restaurants and hotels are purchased from rural producers through several market networks. Milk marketing
agents include both private Dairies and Dairy. Dairy Development Cooperation (DDC) supported outlets. Fresh
and pasteurized milk, yoghurt, cream, butter, ghee cheese, and ice-cream are the main products of both the
private and the public dairy industries.
Market performance and drivers of commercialisation
Strong growth in demand for milk and dairy products: According to the National Dairy Development Board
14
(NDDB), the estimated annual growth in demand for milk and dairy products is 11%. This has been mostly driven
by internal migration to urban areas from rural areas (9%), population growth (1.35%) and increased consumption
arising from dietary changes (2%).
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Greater public investment in infrastructure and agri-business promotion:
‘Farm to market’ connectivity is gradually improving, with over 7,000 km of roads constructed during the past decade 1.
Government support to agribusiness has also been improving, and public spending on the sector has increased almost
fivefold during the past decade. The Government of Nepal (GoN) has given high priority to the sustainable development
of the agriculture and dairy sectors by investing in grassroots farmers to make breeds and feed available to drive down
the cost of production to make them economically and professionally strong.
Steady increase in private investment in small-scale processing plants:
There has been a remarkable increase in the establishment and expansion of regionally based dairy processing
industries, especially in the eastern region of Nepal. There has been some proactive engagement by the dairy
processors’ association to address the industry-wide seasonal surplus. Throughout the past two years, and to avoid ‘milk
holidays’ (i.e. surplus periods with no market for raw milk or a smaller market), processors collected around 500,000 litres
of surplus milk in the flush season. They converted this into milk powder and used it for producing other processed
products during the lean season.
The industry is also facing an acute shortage of SMP due to the government’s SMP import ban. This indicates that the
industry was not ready, or that a transition had not been planned. As a result, parts of the milk processing industry are
now struggling to cope with the decision. A few dairies, such as Anmol dairy, Panauti and Nova dairy, Bhaktapur, had to
halt operations, as they were unable to procure sufficient milk powder2.
However, this disruptive regulatory decision has created opportunities for local businesses to venture into the SMP
business. The largest privately-owned powder manufacturing dairy processor, Chitwan Milk, which had been about to
close, has been brought into operation several times a year under the initiative of the dairy associations 3. There has also
been interest from dairy companies such as Panthi Dairy and Shivam Dairy to invest in small-scale SMP plants to
capitalise on this market opportunity. The challenges to overcome are: a) the availability of affordable financing options
for capital investment in land, infrastructure and equipment, if there is no underutilised capacity in the existing plant; b)
technical know-how and the capacity to install and run an SMP plant efficiently; and c) technical know-how and the
capacity to establish and manage an efficient supply chain of raw milk.
Milk price is high enough for farmers to profit:
The producer milk price appears to have been held constant over the last two years; the consumer price may have been
allowed to increase slightly. The mechanism to determine the price involves all the main stakeholders, and a key
determinant of the consumer price is often the state-owned Dairy Development Company, which controls about 40% of
the commercial milk market and receives an annual government subsidy to cover any losses it incurs. The fact that a
committee receives reports from various information sources and then makes a decision is laudable. There is some
concern that the pricing decisions are not based on market forces: for example, the prices don’t take into consideration
the difference between lean production periods and the flush. What is encouraging is that the final price is strongly
1 World Bank; Road Sector Development Project; 2013

2 https://thehimalayantimes.com/nepal/lack-of-milk-powder-hits-dairy-factories/
3 https://thehimalayantimes.com/nepal/chitwans-milk-processing-industry-brought-into-operation/
16
tilted towards the producers, and the finally agreed price is always shared 69% with the farmers, while the
remainder (31%) is shared by collection centres and processors. For example, the current price sets the
price paid to producers at Rs 54 – Rs 60 per litre depending on the two quality indicators of fat content and
SNF, while the consumer price is Rs 70 per litre. Current media reports indicate that the milk price,
currently under review, may be increased by as much as Rs 10 per litre to make sure the industry remains
viable.
Improved cattle breeds, particularly Jersey and Holstein Frisian, are being reared in Nepal
As recommended by the National Agriculture Research Council (NARC), though at limited scale. These
breeds have better productivity, with average daily production ranging from 10-15 litres for 10 months per
lactation, compared with about 5 litres for local breeds over a shorter period. Popularising these varieties
can significantly drive the commercialisation of milk production in Nepal.
1. Milk
The main product of the will be milk. Milk is one of the most widely used produce in any household
with children to elders taking at least one servicing a day. Milk is said to be healthy and do have
religious values as well. Many religious functions need milk as a must.
2. Manure
Due to the large number of cow in the farm there will be huge production of manure and urine. This
manure and urine will be used for the purpose of production of organic farm fertilizers for vegetables
and products. Its' sale will also provide revenue to the farm.
Along with these products, the project will provide followings services:
It will provide trainings targeting local youths who want to be involved in commercial cow farming so that
they can generate significant level of income which will ultimately help in reducing the trend of seeking
foreign employment. The project will also provide technical knowhow to trainees so that they will be able to
start commercial dairy farming.
Market analysis
Cow and buffalo has gained the reputation of one of the most important livestock commodities for poverty
reduction, livelihood enhancement, food and nutritional security in many counties including Nepal. In the
past the demand for milk fluctuated as only children or elders preferred drinking milk however now-a-days
all the health conscious people of any age regularly take milk. The trend of milk consumption is increasing
with the increase in urbanization and associated income improvement as milk is income classic
consumption item. Therefore, there is a growing gap between domestic supply and demand. The country
wide shortage of milk is currently met by imports of powdered milk from India and other countries.
Increase in import of various milk products despite some increment in domestic production of milk is
primarily due to poor hygiene and sanitation conditions resulting in inferior quality of the milk products.
Therefore, urgent attention is needed to raise awareness among milk entrepreneurs and consumers for
bringing about change in their behavior. There is a need to develop the technical and managerial
capabilities of the milk entrepreneurs in hygiene milk processing, products creation and complying with
quality standards.
Addressing above problems, Unique Vision Agro Investment Private Ltd started its operation earlier. Its
major objective is to supply hygiene and quality milks, quality dragon fruit at large scale according to the
market demand. Furthermore, it wills also helping creating awareness among entrepreneurs for production
of quality milk consumption of hygienic milk for the general people.
2.2 Target market

At its intimae phase, Unique Vision Agro Investment Private Ltd plans to sell its product in local market.
Then after the upgrading of its capacity it will target Kathmandu and then national market i.e. to different
major cities of Nepal through different distribution channel.
Besides dragon fruits and cow farming, other target market for the farm is dairy and feed production, where
all the milk produced by the farm will be processed in the dairy itself. In another hand, all the feeds required
by the farm will slowly be replaced by the produce from the farm itself by growing crops like maize, wheat,
grasses, etc. As level of consumption of milk in selected municipalities, is much higher than the national
average. So, the focus target market would obviously be the urban areas. The farm currently has been
selling its products only in local market but has been facing high demand from other parts of the country.
Hence it shall face no problems in selling its product in the targeted market.
Besides the target market containing milk, the Company plans to sell the produced milk in the local level as
it find that there is a huge demand of milk in the local level by different local dairy. So it shall not face many
problems in selling of the produced milk.
2.3 Competitors
As a Nepalese context, there are many small scaled and few big farms operating dragon fruits and
livestock farming for fruit, milk and meat. According to different data, it is also found that many Nepalese
household are also involved in livestock farming at sustainable level only. Hence these components are
unable to address the increasing demand of milk in Nepalese market. It seems that although there is
presence of many competitors in the market, they will not be tough for this Krishi farm as there are only few
competitors who are involved in commercial cow and bu farming and too are unable to address the current
market demand. In this context Nepal is importing powder milk from neighboring countries every year.
Hence due to the huge increase in demand, it seems that presence of current players will not affect this
Farm.
2.4 Marketing strategies
Nearly 66% of urban households purchased milk compared to about 23% of rural households, reflecting
that many rural households have dairy animals. In the country as a whole, only 26% of households
purchase milk from the market. The number of milk buyers decreased from south to north. The proportion
of households buying milk increased consistently with increasing household income. This relationship is
more marked in urban Nepal than in rural Nepal. Three-quarters of the milk consumed in urban areas in
purchased, whereas the rural milk demand is met primarily through home production.
18
When one takes cow farming as a business, the major objective is to make a profit. One can make a profit
by providing a quality product that meets the market requirements. Therefore in simple terms, marketing is
identifying the needs of the customers/buyers and then supply a product (milk) that meets the required
needs in the right quantities at the right time and place.
Although marketing is the best way to promote business in the wider sectors, the farm is going to perform
marketing activities from the very basic level. The reason behind doing so is that, on the one hand the
necessity of marketing activities is at negligible level; on the other hand cow milk and its' other products
have already drawn significant attention to consumers.
Due to these reasons the farm is going to perform marketing activities using following techniques.
I. Awareness about quality
Currently in the Nepalese market, awareness about hygienic milk is low but consumer's interest is
increasing slowly. This is the best opportunity for the farm to let the market know about the real quality of
cow milk. From the customer point of view, people are buying without assessing the quality of the products.
From the producer point of view, they are not farming in the way they should have. Similarly products are
not hygiene enough to drink or eat. Besides these the farm will conduct various awareness programs at the
village level.
II. Print Media
On the other hand the farm will use the print media to promote farm and its products. In this regards, it will
use some media and bulletins to let the market know about the products.
2.5 SWOT analysis
Strengths Weakness
• Good knowledge of market • high loan equity ratio
• Use of modern methodologies • cost of capital is very high
• Follow of scientific techniques • Inadequacy of alternative agricultural training and
• Own channel of marketing mechanism extension services and co-operation
• Accessible market • Problems regarding milk industry integration and in
• Low environmental pollution and existence of potential for efficiency of marketing activities
organic agriculture.
• Problems regarding balance of conservation utilization of
natural resources.
Opportunity Threats
• Increasing demand in market • Chances of entry of new competitors in the market
• Increasing grants in agriculture sector from government • Unorganized market
• Current supply not unable to meet market demand • Availability and use of substitute products in the market.
• Progress in production, and processing technologies • Rising input prices
• Increasing concern for the empowerment of local support • Changing trend in agricultural support policies
and • Growing intra and inter-regional development disparities
• improvement of public administration for livestock
production
19
CHAPTER THREE
TECHNICAL ASPECTS
3.1 Project Location and Infrastructure

The registered office of this project is situated in ward 10, Mid Baneswor Kathmandu Nepal. The project
site will also be located at the same location. The total area of the project will be 17 Bigha. Its major
products will be milk and its by products.
3.2 Supply chain Management for livestock

In order to conduct the business at the smooth level, the farm needs to assure the regular and timely
availability of all the required resources. Following are the different stakeholders of supply chain
management of this farm.
Cow & buffalo Suppliers
Medical and other assistance Firm

Market
Feed Suppliers
Cow & buffalo Farm
Figure: Supply Chain Management
I Cow & buffalo Suppliers

Cow and buffalo will be imported from breeding center at Indian and Nepali market.
II various suppliers for feeds

The grass will be produced in the farm owned area and other feed raw item will be purchase from
local market for cow and birds till the farm is ready to produce all on their own.
III Medical and other assistance

Though a veterinarian will be posted in the farm, an assistant will also be contacted for medical
supplies and other medical assistance.
3.3 Project capacity

The company covers the total land of 17 Bigha. The production of dragon fruit will be 255000 kg. per year
from 17000 pillers. The company plans to rear more than 100 cows and 50 buffalo in the farm from the
initial stage. Cows and buffalo which produce around 15 liters of milk per day for around 270 days will be
reared.
20
Milk production from 150 animals will be 1500 ltr. around in 1 day. The company has also plan of increasing
its cow and buffalo capacity in the years to come for milk purposes. Animals has been reared for milk
purposes and will be procured at tender age and will be grown for selling purpose too.
3.4 Human Resource Management
Currently the company employees 3 full time staff and 4 helpers excluding owners. The full time staff of the
farm holds the following position in the farm.
Staff Numbers
Manager/Account 1
Watchman/Guards 2
Direct Labor/helpers 10
Besides the full time staff farm investors are also directly involved in the farm. The investors basically look
the market and are also the farm supervisor. The organization shall be adding more number of staff as per
requirement with the expansion of the farm in coming days.
21
CHAPTER FOUR
FINANCIAL ANALYSIS
Any projects or business should be financially strong enough to implement. Here are some financial
highlights of this company which determines whether the business should be done or throw it away.
4.1 Financial Estimation

The total Project cost will be Rs. 208,606,592 including fixed assets investment at Rs. 147,062,500 and
working capital of Rs. 12025 Thou 61,544,092 at 100% sales utilization. It is expecting Rs. 150,000,000
thousand as fixed and working Capital loans from financial institution. Rs. 100,764,726 and Rs.
49,235,274 is expected as Term and working capital loan from financial institution. Rest will be the equity
participation. 69 percent of the total required Fixed Asset Investment excluding land value and 80 percent
of Total required working capital is expected from the financial bank. So the total debt equity ratio will be
72:28.
4.2 Investment structure
Total Equity Bank

SN Items
Amount Finance Loan
A Fixed Asset Investment 147,062,500 46,297,774 100,764,726
B Working Capital Investment 61,544,092 12,308,818 49,235,274
C Total Investment 208,606,592 58,606,592 150,000,000
4.3 Fixed Asset Investment
SN Particulars Total Amt
1 Building & Civil Works 117400000

2 Irrigation 2912500
3 Vehicles 4900000
5 Animal Purchase 21250000
6 Furniture & Office Equipments 100000
7 Pre-operating expenses 500000
TOTAL FIXED ASSET INVESTMENT 147062500
22
4.4 Working Capital
The requirement of working capital has been worked out based on stock of raw material, work in progress,
finished goods, Account Receivable, Cash and Account payable. Out of the working capital requirements of
Rs. 61,544,092 and Rs. 49,235,274 is anticipated to receive from bank as short-term loan.
4.5 Operating Cost & Expenses
The project, based on its production planning, involves an operating cost & expenses amounting Rs.
annually. 96936316 It comprises fixed and variable cost of Rs. and 3799 thous18706301and Rs.
78230015
4.6 Sales Revenue
The sales revenue from the sales of dragon fruits, milks, and by products items will amount of Rs.
41,445,000 first year.
4.7 Cash Flow
Cash flow projections indicate unfavorable positions of cash balance of Rs. (64,518,387) in the first year to
Rs. 216,262,566 in 7th year.
4.8 Break-even-point (BEP)
The operating cost & expenses and sales revenue at its full capacity indicates a average break-even point
(BEP) at 19 percent operation beyond this capacity level is desired to run the project profitably.
4.9 Pay-back period:
Initial investment made on fixed assets of the project is estimated to recover with in the period of 5.69 year
from the date of commencement of operation.
4.10 Loan payment schedule
The company is planning to take the loan of Rs. 150000000 from commercial bank. The company will
repay all the interest and the principal within eight years. The company is expecting to get the loan in the
cost of 10%. And service charge of 1%. Hence, within the period of 8years, the company will repay the
entire due amount.
4.11 Profit and Loss Account
The farm will be in the fevorable situation after its investment. The projected income statement shows the
indication that the farm shall attain positive income from the first year of its expansion.
23
4.12 Major financial ratios
Financial ratio is the major indictors which assess the operation success of the project. If we observe the
overall financial ratios of this company we can proudly as that this business is going to operate smoothly in
the future time. Summary of the various financial ratios are listed below.
4.13 Basic assumptions
In order to compute the financial feasibility of any business there must have some sort of assumptions. For
the success of the business we are trying to assume as close as to the reality. Following are the some
basic and major assumptions.
• Sales revenue increases by 10% every year which also includes the price inflation of
Nepalese economy.
• The operating fixed expenses of the company increases by 5% every year.
• The operating variable expenses increased by 5% every year.
• The interest rate for 5 years is assumed to be 3.5% and service charge 1%.
• The company shall add no any marginally big fixed assets in 5 year time period.
• The tax rate is assumed to be 25%.
• AR, AP is assumed on the basis of general practice and shall increases by 10% every
year.
24
CHAMPTER FIVE
ENVIRONMENTAL ANALYSIS AND GOVENRMENT POLICIES
5.1 Impact of business in society
Sometimes it is quite difficult to illuminate the negative impacts of business in the society. Unique Vision
Agro Investment Private Limited. will be doing lots of things to eliminate the negative impact of the
business. Following are some negative things which are going to make society concerned.
I. Risk factor children
The animal may be dangerous for very small children as they may be stepped on.
II. Sound pollution
Sound created by the presence of animals may affect the neighbors. Though the sound made by
cows is not much annoying but for minimal disturbance farm will be established 500 meters from
the residence area. Furthermore all neighbors will be informed in advance about the operation
farm.
III. Bad smell
Manure and some other garbage which will be produced by animals may crate bad smell. To solve
this problem all the manure produced by cows and buffalos will be supplied to farmers which will be
used in agriculture sector for the purpose of fertilizer. In the way there will be proper utilization of
cow manure and on the other side it will create revenue for the farm.
Not only the negative impact, there are lots of positive impacts as well for the betterment of the
society. Following are the encouraging impacts of business in the society.
• Employment
• Awareness about commercial cow farming
• Technological knowledge
• Availability of hygiene milk
5.2 Impact of Business in environment

Nowadays, business is not only about making profit, it needs to take care of many things. Out of those
many things, one of the most crucial things is the environment. So we are conscious about the negative
effects which our project may cause to the environment. Similarly, we will definitely follow the methods
which are environment friendly. The farm will do following things to reduce the negative impacts of its
business in the environment.
25
• First priority for the farm is to control the problem of grazing of animals in the forest area. For this the
farm will be producing forage in its own land.
• Another priority of the company will be to promote local employment therefore the farm will engage
local people for different jobs.
• The farm will be far from the resident locality so that it can avoid the risk of bad smell and sound
pollution.
• The farm will construct fences around the farm to prevent the probability of any possible accidents.
• The farm will use the manure of animals in agriculture sector for the purpose of fertilizers.
• The farm will make people aware about commercial livestock farming and about the hygienic and
health milks.
5.3 Government Policies

The company has followed all the government policies and norms that are applicable to this industry. More
over the regular practices that are currently followed by the peer company in this field were studded and
company was established and registered in company registar.
The company has regularly followed all the government compliances that are must for this company,
moreover regular awareness programs with regards to government policies and framework conducted by
the different government agencies, NGO's, INGO's are closely attend by the members are of this company.
26
CHAPTER SIX
CONCLUSION & RECOMENDATION
The projecct containing dragon fruit, cow and buffalo milk plays an important role in generating
employment, income and improving household nutrition. Milk and fruit production is considered to be an
important tool for socio-economic information of the rural people. But due to limited information on the
technical aspect, most of the Nepalese farmers are farming in traditional ways. It is estimated that with the
adoption leading to higher income. So, new technologies are essential in improving cow milk production,
productivity and livelihood of farmers in Nepal.
Doing business is a risky endeavor. There is no any fixed answer of the question like whether the business
will be successful or it will face the loss. However, all the financial theories explain that whenever we take
risk there should be enough profit to compensate it. It does not mean that all the risk that anyone takes is
the means to generate profit; there are lots of things which affect the profitability of any business.
In the previous sections we have analyzed plenty of things. From farm policies, technical aspects, market,
human resource and all the indicators are in favor of the farm. This business is profitable enough to
payback the investment. This business is environment friendly enough to operate in the society.
Government rules and regulation are positive enough to operate the business. Similarly the mission, vision,
objectives and strategies of the farm are sound and clear enough to implement tall plans.
Hence, the farm has clear vision about where to go, when to go and how to go. Although our expectations
will not be 100% true but our current business plan shows that if the farm becomes able to conduct the
activities and implement the plans perfectly, there is only one thing which will evolve which is success.
27
Financial Annexes
28
Projected Balance Sheet
Projected
Particulars Sch. 2087/88 2086/87 2085/86 2084/85 2083/84 2082/83 2081/82 2080/81
Sources Of Fund
Paid up Capital 2 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000
Accumulated Profit/(Loss) 142,203,341 156,501,758 154,891,859 134,289,423 97,109,351 42,542,440 (1,820,358) (42,780,451)
Properietor Investment - - - - - - - -
Long Term Loan 102,672,151 92,495,520 81,097,693 68,332,127 81,097,693 92,495,520 102,672,151 111,758,429
Total Sources of Fund 254,875,492 258,997,278 245,989,552 212,621,550 188,207,044 145,037,960 110,851,793 78,977,978
Uses Of Fund
Fixed Assets (less Dep.) 1 90,748,473 95,809,591 101,201,737 106,957,375 113,114,251 119,716,538 126,816,250 134,475,000
Current Assets
Closing Inventory 5 7,115,367 6,468,516 5,880,469 5,345,881 4,859,892 4,628,468 4,408,065 4,119,687
Advance & Deposit 6 15,253,398 13,866,726 12,606,114 11,460,104 10,418,276 9,471,160 8,610,146 7,827,405
Sundry Debtors 8 17,959,178 17,607,037 17,261,801 16,923,335 16,591,504 16,266,181 15,947,236 15,634,545
Cash & Bank Bal. 3 236,178,895 216,601,716 149,742,272 144,888,397 109,772,869 57,187,062 15,333,739 (37,226,171)
Total Current Assets 276,506,839 254,543,995 185,490,656 178,617,716 141,642,541 87,552,871 44,299,186 (9,644,534)
Total Assets 367,255,312 350,353,586 286,692,393 285,575,091 254,756,792 207,269,409 171,115,436 124,830,466
Current Liabilities & Provisions

Short Trem loan 9 38,241,571 38,241,571 38,241,571 38,241,571 38,241,571 38,241,571 38,241,571 38,241,571
Sundry Creditors & Payable 10 13,080,601 11,891,455 10,810,414 9,827,649 8,934,227 8,122,024 7,383,658 6,712,417
Other Payable 10 1,719,615 1,566,286 1,426,896 1,300,179 1,184,981 1,080,255 985,050 898,500
Provision for Income Tax 10 42,634,975 35,314,802 28,994,887 23,584,143 18,188,970 14,787,599 13,653,364 -
Total Current Liabilities 95,676,761 87,014,114 79,473,768 72,953,541 66,549,748 62,231,449 60,263,643 45,852,487
Net Current Assets 180,830,078 167,529,881 106,016,888 105,664,175 75,092,793 25,321,422 (15,964,457) (55,497,022)
Total Uses of Fund 367,255,312 350,353,586 286,692,393 285,575,091 254,756,792 207,269,409 171,115,436 124,830,466
- - - - - - - -
29
Projected Income Statement
2087/88 2086/87 2085/86 2084/85 2083/84 2082/83 2081/82 2080/81

Particulars Sch.
Sales Reveneue/ Income 349,444,243 315,304,643 284,503,700 256,714,607 231,642,572 209,021,685 190,220,300 67,980,600
Less:
Cost of Sales 4 149,567,393 146,682,760 143,151,276 139,031,745 134,377,626 124,237,517 108,865,986 78,274,051
Gross Profit 199,876,850 168,621,882 141,352,424 117,682,862 97,264,946 84,784,168 81,354,314 (10,293,451)
Less:
Administrative exp. 7 11,955,174 10,871,068 9,885,516 8,989,560 8,175,055 7,434,595 6,761,450 6,149,500
Operating profit 187,921,675 157,750,815 131,466,908 108,693,302 89,089,892 77,349,573 74,592,864 (16,442,951)
Less Depreciation 1 5,061,118 5,392,146 5,755,637 6,156,876 6,602,287 7,099,713 7,658,750 8,337,500
Net Profit Before Interest & Tax 182,860,557 152,358,669 125,711,271 102,536,426 82,487,605 70,249,860 66,934,114 (24,780,451)
Less: Interest Expenses 7 12,320,658 11,099,462 9,731,723 8,199,855 9,731,723 11,099,462 12,320,658 18,000,000
Net profit (loss) before tax 170,539,899 141,259,207 115,979,547 94,336,571 72,755,882 59,150,398 54,613,456 (42,780,451)
Provision for Tax 42,634,975 35,314,802 28,994,887 23,584,143 18,188,970 14,787,599 13,653,364 -
Net profit after tax 127,904,924 105,944,405 86,984,661 70,752,428 54,566,911 44,362,798 40,960,092 (42,780,451)
Up to previous year profit /(Loss) 156,501,758 154,891,859 134,289,423 97,109,351 42,542,440 (1,820,358) (42,780,451) -
Total Profit Available 284,406,683 260,836,264 221,274,084 167,861,779 97,109,351 42,542,440 (1,820,358) (42,780,451)
Less : Profit Withdrawn 142,203,341 104,334,505 66,382,225 33,572,356 - - - -
Balance Transfer to B/S 142,203,341 156,501,758 154,891,859 134,289,423 97,109,351 42,542,440 (1,820,358) (42,780,451)
Projected Cash Flow Statement
S.no. Particular 2087/88 2086/87 2085/86 2084/85 2083/84 2082/83 2081/82 2080/81
1 CASH FLOW FROM OPERATION ACTIVITIES (31,296,874) 116,683,002 97,241,460 81,453,450 63,983,634 52,029,954 61,646,188 (54,413,671)
Net profit (loss) - 141,259,207 115,979,547 94,336,571 72,755,882 59,150,398 54,613,456 (42,780,451)
Add
Depreciation 5,061,118 5,392,146 5,755,637 6,156,876 6,602,287 7,099,713 7,658,750 8,337,500
Decrease(Increase) in current assets (2,385,665) (2,193,894) (2,019,065) (1,859,647) (1,503,863) (1,400,363) (1,383,809) (27,581,637)
Increase (decrease) in current liabilities 8,662,647 7,540,346 6,520,227 6,403,793 4,318,299 1,967,806 14,411,156 7,610,917
Income tax paid (42,634,975) (35,314,802) (28,994,887) (23,584,143) (18,188,970) (14,787,599) (13,653,364) -
2 CASH FLOW FORM INVESTING ACTIVITIES - - - - (142,812,500)
Fixed assets Sales (Purchase) - - - - (142,812,500)
3 CASH FLOW FROM FINANCING ACTIVITIES 50,874,054 (49,823,558) (92,387,586) (46,337,922) (11,397,827) (10,176,631) (9,086,278) 160,000,000
Increase in share capital - - - - 10,000,000
Properietor's Investment - - - - -
Bank Loan Disbursement/(Payment) 50,874,053 (49,823,558) 11,946,920 (12,765,566) (11,397,827) (10,176,631) (9,086,278) 150,000,000
Dividend Distributed - (104,334,505) (33,572,356) - - - -
Net cash increse(decrease) from 1+2+3 19,577,179 66,859,445 4,853,874 35,115,528 52,585,807 41,853,323 52,559,911 (37,226,171)
Opening balance of Cash & Bank 216,601,716 149,742,272 144,888,397 109,772,869 57,187,062 15,333,739 (37,226,171) -
Cash & Bank Bal. End of the year 236,178,895 216,601,716 149,742,272 144,888,397 109,772,869 57,187,062 15,333,739 (37,226,171)
30
Schedule-1
Name of Assets Opn.Bls 2080/81 Total Bal Dep. Rate Dep. Amt. Clo. Balance
Furniture, Fixture 100,000 100,000 25% 25,000 75,000
Civil Construction 134,200,000 134,200,000 5% 6,710,000 127,490,000
Irrigation 2,912,500 2,912,500 20% 582,500 2,330,000
Vehicles 4,900,000 4,900,000 20% 980,000 3,920,000
Tools and Equipment for Cattle & Birds 200,000 200,000 20% 40,000 160,000
Other Fixed Asset 500,000 500,000 0% - 500,000
Total - 142,812,500 142,812,500 8,337,500 134,475,000
Furniture, Fixture 75,000 75,000 0.25 18,750 56,250
Civil Construction 127,490,000 127,490,000 0.05 6,374,500 121,115,500
Irrigation 2,330,000 2,330,000 0.15 349,500 1,980,500
Vehicles 3,920,000 3,920,000 0.20 784,000 3,136,000
Tools and Equipment for Cattle & Birds 160,000 160,000 0.20 32,000 128,000
Other Fixed Asset 500,000 500,000 0.20 100,000 400,000
Total 134,475,000 - 134,475,000 7,658,750 126,816,250
Irrigation 1,980,500 1,980,500 15% 297,075 1,683,425
Vehicles 3,136,000 3,136,000 20% 627,200 2,508,800
Other Fixed Asset 400,000 400,000 20% 80,000 320,000
Total 126,816,250 - 126,816,250 7,099,713 119,716,538
Irrigation 1,683,425 1,683,425 15% 252,514 1,430,911
Vehicles 2,508,800 2,508,800 20% 501,760 2,007,040
Total 119,716,538 - 119,716,538 6,602,287 113,114,251
Irrigation 1,430,911 1,430,911 15% 214,637 1,216,275
Vehicles 2,007,040 2,007,040 20% 401,408 1,605,632
Total 113,114,251 113,114,251 6,156,876 106,957,375
Irrigation 1,216,275 1,216,275 15% 182,441 1,033,833
Vehicles 1,605,632 1,605,632 20% 321,126 1,284,506
Total 106,957,375 106,957,375 5,755,637 101,201,737
Irrigation 1,033,833 1,033,833 15% 155,075 878,758
Vehicles 1,284,506 1,284,506 20% 256,901 1,027,604
Total 101,201,737 101,201,737 5,392,146 95,809,591
Irrigation 878,758 878,758 15% 131,814 746,945
Vehicles 1,027,604 1,027,604 20% 205,521 822,084
Total 95,809,591 95,809,591 5,061,118 90,748,473
31
Schedule Forming Parts of Financial Statement (Schedule)
Projected
Capital Schedule-2
Particulars 2087/88 2086/87 2085/86 2084/85 2083/84 2082/83 2081/82 2080/81
Authorised Capital 30000000 30000000 30000000 30000000 30000000 30000000 30000000 30000000
Issued Capital 10000000 10000000 10000000 10000000 10000000 10000000 10000000 10000000
Paid Up Share Capital 10000000 10000000 10000000 10000000 10000000 10000000 10000000 10000000
Total 10000000 10000000 10000000 10000000 10000000 10000000 10000000 10000000
Cash Bank Balance Schedule-3
Particulars 2087/88 2086/87 2085/86 2084/85 2083/84 2082/83 2081/82 2080/81
Cash in Hand/ Bank 236178895 216601716 149742272 144888397 109772869 57187062 15333739 -37226171
Foreign Currency 0 0 0 0 0 0 0 0
Total 236178895 216601716 149742272 144888397 109772869 57187062 15333739 -37226171
Cost of Sales Schedule-4

Particulars 2087/88 2086/87 2085/86 2084/85 2083/84 2082/83 2081/82 2080/81
Opening Stock 146682760 143151276 139031745 134377626 124237517 108865986 78274051 0
Add: Purchase 10000000 10000000 10000000 10000000 15000000 20000000 35000000 82393738
Less: Closing Stock 7115367 6468516 5880469 5345881 4859892 4628468 4408065 4119687
COGS 149567393 146682760 143151276 139031745 134377626 124237517 108865986 78274051
Closing Stocks Schedule-5
Particulars 2087/88 2086/87 2085/86 2084/85 2083/84 2082/83 2081/82 2080/81
Total Colsing Stocks 7115367 6468516 5880469 5345881 4859892 4628468 4408065 4119687
Prepaid Advance and Deposit Schedule-6

Particulars 2087/88 2086/87 2085/86 2084/85 2083/84 2082/83 2081/82 2080/81
Advance and deposit for Raw Materials 15253398 13866726 12606114 11460104 10418276 9471160 8610146 7827405
Total 15253398 13866726 12606114 11460104 10418276 9471160 8610146 7827405
32
Schedule Forming Parts of Financial Statement (Schedule)
Administrative Expenses Schedule-7

Particulars 2087/88 2086/87 2085/86 2084/85 2083/84 2082/83 2081/82 2080/81
Salary & Allowance 11,244,098 10,221,907 9,292,643 8,447,857 7,679,870 6,981,700 6,347,000 5,770,000
Water & Electricity expenses 330,308 300,280 272,981 248,165 225,605 205,095 186,450 169,500
Priting & Stationary 48,718 44,289 40,263 36,603 33,275 30,250 27,500 25,000
Telephone and communication 77,949 70,862 64,420 58,564 53,240 48,400 44,000 40,000
Travel & Tours 97,436 88,578 80,526 73,205 66,550 60,500 55,000 50,000
Office expenses 19,487 17,716 16,105 14,641 13,310 12,100 11,000 10,000
Registration and Renewal 58,462 53,147 48,315 43,923 39,930 36,300 33,000 30,000
Audit fee 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000
Miscellenous Expenses 48,718 44,289 40,263 36,603 33,275 30,250 27,500 25,000
Tea & Tiffen - - - - - - - -
Total 11,955,174 10,871,068 9,885,516 8,989,560 8,175,055 7,434,595 6,761,450 6,149,500
Interest Expenses 12,320,658 11,099,462 9,731,723 8,199,855 9,731,723 11,099,462 12,320,658 18,000,000
Debtors and Receivables Schedule-8

Particulars 2087/88 2086/87 2085/86 2084/85 2083/84 2082/83 2081/82 2080/81
Trade Receivables 17,959,178 17,607,037 17,261,801 16,923,335 16,591,504 16,266,181 15,947,236 15,634,545
Other receivables - - - - - - - -
Total 17,959,178 17,607,037 17,261,801 16,923,335 16,591,504 16,266,181 15,947,236 15,634,545
Borrowings Schedule-9
Particulars 2087/88 2086/87 2085/86 2084/85 2083/84 2082/83 2081/82 2080/81
Short Term Loan 38,241,571 38,241,571 38,241,571 38,241,571 38,241,571 38,241,571 38,241,571 38,241,571
Long term Loan 102,672,151 92,495,520 81,097,693 68,332,127 81,097,693 92,495,520 102,672,151 111,758,429
Total 140,913,722 130,737,091 119,339,264 106,573,698 119,339,264 130,737,091 140,913,722 150,000,000
Commercial and Other Payables Schedule-10

Particulars 2087/88 2086/87 2085/86 2084/85 2083/84 2082/83 2081/82 2080/81
Sundry Creditors 13,080,601 11,891,455 10,810,414 9,827,649 8,934,227 8,122,024 7,383,658 6,712,417
Income Tax Payable 42,634,975 35,314,802 28,994,887 23,584,143 18,188,970 14,787,599 13,653,364 -
TDS payable 1,691,115 1,537,786 1,398,396 1,271,679 1,156,481 1,051,755 956,550 870,000
Other Payable 28,500 28,500 28,500 28,500 28,500 28,500 28,500 28,500
Total 57,435,190 48,772,543 41,232,197 34,711,970 28,308,177 23,989,879 22,022,072 7,610,917
33
Annex-1
Fixed Asset Investment
Particulars Unit Qnt. Rate Amt. Total

1 Building and Civil Construction: 134,200,000
Dragon Fruits:
Cold Storage sqft. 2000 2500 5000000
Labor House sqft. 2600 2500 6500000
Piller nos 17000 5500 93500000
Cow:
Shed for cow@70 sqft/Cow (100 cows) sqft. 7000 800 5600000
Shed for calves, dry cow & calving pen @40 sqft/calves sqft. 4000 800 3200000
Buffalo:
Shed for Buffalo@70 sqft/Nos (50 Nos) sqft. 3500 800 2800000
Shed for calves, dry cow & calving pen @40 sqft/calves sqft. 1000 800 800000
Local Chicken:
Shed for Local Chicken (21000 nos) Sqft 21000 800 16800000
2 Irrigation Cost 2,912,500
Water Tank (5 thousand Liter) Nos 5 62500 312500
Pipes for drip Irrigation (17 bigha) LS 2000000
Deep boring LS 500000
Other Cost 100000
3 Tools and Equipment for Cattle & Birds Ls 200,000
4 Vehicles 4,900,000
Pickup Van Nos 1 3500000 3500000
Tractor Nos 1 1400000 1400000
5 Initial Animal Purchase 21,250,000

Cow (Jercy) Nos 100 125000 12500000
Buffalo (Murra) Nos 50 175000 8750000
6 Furniture & Office Equipments 100,000

Office Set 1 100000.000 100000
7 Pre Operating Cost 500,000

Project Enginnering and report 500000
Total Fixed Asset Investment 164,062,500
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Company Related Photograps
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Company Documents
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Project Report of Dragon Fruit

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Project Report of Dragon Fruit

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Project Report

Unique Vision Agro Investment Private Limited.

6. Total Project Cost : 211,864,463

7. Bank Finance : 150,000,000

8. Equity Finance : 61,864,464

9. Sales Revenue (Initial Year) : 67,980,600

Sector growth scenario

Address Ward No. 10, Mid Baneswor, Nepal

Area Covered 17 Bigha

Company's current work status

Phase of operation & production Cow 100 and 50 buffalo

Reason for farming

Particulars Projected Capacity Remarks

1.6 Keys to success

• Well planned business ideas.

1.6 Capital Investment required for the Project

Total Equity Bank

Temperate fruits: Apple, walnut, apricot

Uses (By products)

Nutritive value per 100 g of dragon fruit:

Principle Nutritive value

Crude fiber 1.34 mg

Energy 67.70 Kcal

Principle Nutritive value

Different types of dragon fruit in Indian Sub-continent

Milk marketing and market structure

Market performance and drivers of commercialisation

Steady increase in private investment in small-scale processing plants:

Milk price is high enough for farmers to profit:

1 World Bank; Road Sector Development Project; 2013

2.2 Target market

2.4 Marketing strategies

I. Awareness about quality

II. Print Media

2.5 SWOT analysis

3.1 Project Location and Infrastructure

3.2 Supply chain Management for livestock

Cow & buffalo Suppliers

Medical and other assistance Firm

Figure: Supply Chain Management

I Cow & buffalo Suppliers

II various suppliers for feeds

III Medical and other assistance

3.3 Project capacity

3.4 Human Resource Management

4.1 Financial Estimation

4.2 Investment structure

Total Equity Bank

4.3 Fixed Asset Investment

SN Particulars Total Amt

1 Building & Civil Works 117400000

4.11 Profit and Loss Account

4.13 Basic assumptions

5.1 Impact of business in society

I. Risk factor children

II. Sound pollution

III. Bad smell

5.2 Impact of Business in environment

5.3 Government Policies

Current Liabilities & Provisions

2087/88 2086/87 2085/86 2084/85 2083/84 2082/83 2081/82 2080/81

Projected Cash Flow Statement

Depreciation 5,061,118 5,392,146 5,755,637 6,156,876 6,602,287 7,099,713 7,658,750 8,337,500