DETAIL PROJECT REPORT (DPR)

ON

GODAVARI GOAT FARM

(Osmanabadi Goat Breed,100+5)

At. Gut No.28, Sawangi Ganga Kinara

Tq. Partur Dist. Jalna
MAHARASHTRA

PREPARED BY –
K.G. KAPTE AND ASSOCIATES
HAPPY COLONY, KOTHRUD, PUNE -38
7972542736

Prepared by eKapte – 7972542736 1

 CONTENTS
S.No. Title Page No.

Highlights of the Report 3

1 Introduction 4

2 The object of the Report 4

3 Market 5

4 Business Model Process 5

5 Promoter and Location 6

6 Cost Component of the Project 7

7 Means of Finance 7

8 Security for Loan 8

9 Health Care of Goats 8

10 Insurance 8

11 Vaccine 8

12 Association with Govt. Departments 8

13 Green fodder Cultivation 9

14 Concentrated feed 9

15 Procurement of Animals 9

16 Marketing Strategy 9

17 Benefits of NLM Scheme 10

18 Assumptions 10

19 Implementation Schedule 11

20 Financial Projection and Technical Data Annexures 12-17

Prepared by eKapte – 7972542736 2

 HIGHLIGHTS OF THE REPORT

Name of Unit - GODAVARI GOAT FARM

Name of the Entrepreneur - Devraj Venkatrao Phad

BREED - OSMANABADI GOAT

Constitution - Individual

Address - At. Gut No.28, Sawangi Ganga Kinara -431507

Tq. Partur & Dt. Jalna (MAHARASHTRA)

Mobile No. - 7666734559

Mail Id - phaddevraj1985@gmail.com

Activity - ESTABLISHMENT OF ENTERPRISE FOR BREED

DEVELOPMENT IN THE SMALL RUMINANT SECTOR

(GOAT FARM) (100+5)

Total cost of the Project - Rs. 21,54,650/-

Means of Finance - Own Contribution - Rs. 2,24,650/-

Bank Loan - Rs.9,30,000/-

Subsidy from NLM - Rs. 10,00,000/-

Manpower Required - 2

Repayment Period - 7 Years

Rate of Interest on Loan - 12%

Average DSCR - 5.44

CONCLUSION: - THE PROJECT IS FEASIBLE.

PREPARED ON THE INFORMATION GIVEN BY THE PROMOTER.

Prepared by eKapte – 7972542736 3

 1. INTRODUCTION
The project report is prepared to study the economic viability of Godavari Goat
Farm at Gut No.28, of Village Sawangi Ganga Kinara Tq. Partur and Dt. Jalna.
The location is in the Marathwada region of Maharashtra state.
The promoter decided to start an Enterprise for breed development in the small
ruminant sector, especially in Goat Farming of the Osmanabadi Breed. This
Breed is healthy and productive in this region, So farmers prefer to rear these
goats.
Goat farming is a major supportive business for farmers. Mostly goat farming in
this area is in an unorganized sector so the uniform quality of the breed is not
available. The promoter has owned land and so decided to start this goat
farming unit on this Land in an organized form with stall Feeding.
The Fodder will be cultivated on the owned Land, which is the most profitable.

2. OBJECT OF THE PROJECT

A. To develop an Enterprise in the small ruminant sector
B. To develop a sustainable business model for Goat Farming in the Drought-
prone area.
C. To create Backward and Forward linkage by growing Stallfeed Local Breed.
D. Conversion of the small ruminant sector from an unorganized sector to an
organized sector through the promotion of entrepreneurship and investment.
E. Spreading awareness about scientific rearing practices, nutrition, disease
prevention, etc.
F. Promotion of stall feeding model of goat rearing.

Prepared by eKapte – 7972542736 4

3.MARKET
The market is available at Majalgaon, Pathri, and in the nearby area of the farm.
The Major aspects of Marketing are to make available quality breeds to the farmers
and to produce excellent breeds for the market.

The promoter of this unit made a market survey, contacted the farmers and the
traders in the market, and after that took the decision to start this unit. The basic
idea is to develop a breed and sell goats to farmers and goat farming
entrepreneurs in the nearby area and so marketing will be done through farmers.
The meat of Goat is in much demand in all seasons in the Market, So farmers
prefer to rear Osmanabadi goats.
As in goat farming, there will be three products that will generate income and
those are goat, Milk, and manure.
As the promoter decided to start an enterprise for Breed development, the
farmers in the surrounding unit will also be his customers for the developed
breed. Goat farming is a most profitable business and it’s like a cash crop to
every farmer as fodder can be cultivated on their farm and is not required to
make any special efforts for stall feeding, the market is easily available, So
farmers prefer goat Farming.

The milk of goats has medicinal value, So, there is a good market available. The
manure is used for organic farming, and even Govt. is promoting Organic
farming, So each and every product of this unit has a tremendous market in
rural areas. This unit can bring a drastic change in the livelihood of promoters
and nearby farmers.

4. BUSINESS MODEL PROCESS

The goats of the Osmanabadi Breed will be purchased from the Govt. Stall feed
goat Farms as per guidelines of the National Livestock Mission. The separate
shed will be there for parent stock and kids. A separate arrangement will be
made for sick pen goats and sheep. The fodder will be cultivated on their own
and leased land. The feed concentrate will be purchased.

The required Green, Dry Fodder & Feed will be made available in the Shed on
site.

Regular medical check-ups and vaccinations will be carried out in the shed of
all sheep and goats.

Prepared by eKapte – 7972542736 5

After growing up these Kids & after union with male goats will give birth to
other Kids. After growing these kids up to 6-8 months they will be sold into the
Market.

Thus, the cycle will be carried on.

5. PROMOTER, LOCATION AND EXPERIENCE

The Unit GODAVARI GOAT FARM is promoted by Mr. Devraj Venkatrao

Phad, age 39 years. He has completed training in Goat Farming. He has worked
in the goat farm for experience. The promoter decided to start this farm at Gat
No.28 of Village Sawangi Ganga Kinara Tq. Partur and Dt. Jalna of
Maharashtra state. The promoter has owned land and he decided to use 1.5
Acres of land for this project.

The promoter decided to Establish an Enterprise for breed development in the

small ruminant sector (Goat breeding farm) by constructing a required shed.

The required fodder will be cultivated on the same Land, which will be more
beneficial for the viability of the project. All the amenities for fodder cultivation
are available on the land. For water, the Godavari River and Dam is there and
the pipeline can be laid easily.

The promoter has very good contacts with nearby farmers with whom discussed
the project, these farmers are ready to purchase goats from this breeding farm.

Prepared by eKapte – 7972542736 6

6. COST COMPONENTS OF THE PROJECT
S. No. Particulars Cost in Rs.
1 Construction of housing Shed for Parent 385000
Stock

2 Kid Shed and Sick Pen 210000

3 Cost of Doe 1100000

4 Cost of Buck 65000

5 Transportation Cost 21000

6 Fodder Cultivation 52500

7 Chaff Cutter 25000

8 Silage making machine 0

9 Equipment 31500

10 Insurance 87375

11 Miscellaneous 22625

12 Total Capital Expenditure 20,00,000

13 Recurring Expenses 1,54,650

14 Total Project Cost (12+13) 21,54,650

7. MEANS OF FINANCE
Sr. No. PARTICULARS COST (RUPEES)

1. Own Contribution 2,24,650

2. Loan from Financial Institution 9,30,000

3. Incentives under NLM Scheme 10,00,000

4. TOTAL 21,54,650

Prepared by eKapte – 7972542736 7

8. SECURITY FOR LOANS
The mortgage of the Land and Building of the Godavari Goat Farm as well as
the personal guarantee from the promoter would be provided as security to avail
of the loan. Since the sale of animals would be done after proper weight, a
mortarium of one year in repayment of the principal may be provided.

9. HEALTH CARE OF GOATS

Goats are relatively easy to take care of, and sanitary housing, good quality
pasture, nutritious food, and plenty of sunshine will greatly help to reduce
health problems. Goats need to have their hooves trimmed every four weeks.
This is very important because neglect of hooves can lead to lameness and
infection. Hoof trimming is a simple procedure that can be adopted by a
veterinarian. Hoof trimmers will be purchased under equipment from farm
supply stores. During daily lookout with goats, always physical or behavioral
changes will be monitored. Symptoms indicating illness include loss of appetite,
limping, listlessness, labored breathing, diarrhea, discharge from the eyes or
nose, and abnormal body temperature. If any of these symptoms occur, the
Veterinarian will be contacted immediately.

10. INSURANCE
All the animals would be tagged for identification and insured to protect
members from any kind of financial losses in case of the death of animals.

11. VACCINES
Goats are vaccinated for rabies, tetanus, and clostridium (CTD). The rabies
vaccine can be hard on goats, therefore the other vaccinations would be given at
least one month before and after the rabies vaccine. Vaccination would be done
by veterinary doctors on a scheduled basis.

12. ASSOCIATION WITH GOVT. DEPARTMENTS

Veterinary assistance and other technical assistance would be taken from the
office of Livestock Development Office (LDO). The service of the Doctor will
be taken regularly through appointments.

Prepared by eKapte – 7972542736 8

13. GREEN FODDER CULTIVATION
Green fodder provides a natural way of nutrients for goats and plays a major
role in livestock growth and health. Green fodder cultivation cuts the cost of
feed. Cultivation cost and maintenance of green fodder like grass crops, cereal-
based crops, and tree-based crops. The cost of cultivation of green fodder is Rs.
35000/- per Acre. The manure produced will be used for the cultivation of green
fodder.

14. CONCENTRATE FEED

The adult does require concentrate for one month before breeding and one
month after kidding and the quantity per kidding required is around 6.75 Kg.
per month. The Bucks require 7.5 kg per month for two months per breeding
season. Kids require 3.75 Kg. of concentrate for 30 days. All the concentrate
will be purchased from the market.

15. PROCUREMENT OF ANIMALS

A team of experts including Govt. and Private doctors will be formed and all the
animals will be purchased from National Livestock Mission (NLM)
recommended institutes. The list is already available on the NLM Website. The
team will visit these recommended farms.

16. MARKETING STRATEGY

The Kids will be sold directly to farmers and retailers in the market. The traders
will be contacted through various channels. The weekly bazaar is the main
source for selling Animals. Since it is an organized farm people will directly
visit the farm for purchasing.

Goat Milk is in high demand in the market. Around 90 liters of milk will be
available in the year after milking to Kid. The regular monthly customer will be
linked to the sale of this milk.

The manure will be used on the own farm for cultivation as it is a good source
of organic fertilizer.

Prepared by eKapte – 7972542736 9

17. BENEFIT OF NLM SCHEME
The scheme of the National Livestock Mission (NLM) aims toward
employment generation, entrepreneurship development, and an increase in per-
animal productivity and thus targeting increased production of meat, goat milk,
egg, and wool under the umbrella scheme Development Program. The excess
production will help the export earnings after meeting the domestic demands.
The concept of the NLM Scheme is to develop the entrepreneur in order to
create the forward and backward linkage for the products available in the
unorganized sector and to link with the organized sector.

The scheme provides an incentive of 50% for the goat farming of the unit 100+5
size. The maximum limit of incentive is 10 lacs. Any unit of goat farming
requires at least one year from the beginning for sustaining and this incentive is
very helpful for the sustainment of the unit.

Bank will show interest in helping such a unit as there is less risk due to
incentives.

18. ASSUMPTIONS
1. The Proposed unit will be installed under the scheme of the National
Live-Stock Mission (NLM).
2. The Contribution of the promoter will be of Rs. 2,24,650/- and Bank
finance will be of Rs. 9,30,000/-. The contribution will be raised through
own funds and relatives.
3. The rate of interest on Bank Borrowings is considered 12%.
4. The rate of depreciation is considered to be at 10% of Fixed Cost. The
fixed costs are Building, Equipment, Silage, Chaff cutter, and other costs.
5. The Osmanabadi Goats will be purchased from Stall feed Goat Farms.
6. The unit is liable to get a subsidy of 50% of the total project cost. The
maximum subsidy will be Rs. Ten lacs and it will be received in two
installments.
7. All calculations are considered on a Loan basis, As the NLM scheme is a
credit Link scheme. The incentive will be an additional benefit.

Prepared by eKapte – 7972542736 10

19. IMPLEMENTATION SCHEDULE

On receipt of the sanction from NLM and Bank towards the project, the same
would be completed step by step within the following time schedule.

Activities Time of Commencement Time of Completion

Preparation of Within one month from the 15 days
Land and date of receipt of the sanction
construction
Civil Construction Within 15 working days after Three Months
the preparation of land
Other basic Immediately after starting 15 Days
amenities like Civil Work
electricity supply,
water
arrangements, etc.,
Equipment and After Completion of civil One Month
Machinery work
Procurement
Procurement of Within 15 days of completion 15 days
Animals of civil work
Procurement of Before procurement of
Fodder and Animals
concentrate
Fodder Cultivation Within 15 days of sanction of 3 Months
loan from NLM and Financial
Institution
Veterinary aids Timely Basis as per
and Medicines instruction of Medical
Advisors
Maximum Period Immediately after the 6 Months
to start unit sanction of the Loan and
Approval from NLM

Prepared by eKapte – 7972542736 11

 ANNEXTURE -1
Financial Feasibility and Technical Data
Techno-economic parameters for estimating financial viability (For 100+5
unit)
S. No. Particulars Unit cost (₹)
1 Cost of animal including transportation charges
Bucks (unit cost) 12000
Does (unit cost) 10000
2 Age at first lambing (month) 10-12 months
3 Kidding percentage 85%
4 No. of kidding per year 1.5
5 Sex ratio 50 50
6 Kidding interval (months) 8
7 Mortality
a. Adults 5%
b. Kids 10%
8 Culling rate among does (3rd year onwards) 20%
9 Replacement of bucks Every 2 years
10 Cost of green Fodder cultivation per Acre 35000
11 Concentrate Feed
a. Doe (60 feeding days) in kg/day 6.75
b. Buck (60 feeding days) in kg/day 7.50
c. Kid (30 feeding days)in kg/day 3.75
12 Veterinary aid per animal per year 50
13 Insurance premium per animal per year 5%
14 Sale price of animals
Male Kids 9000
Female kids 5500
Culled does 4500
Culled bucks 8000
15 Sale of Gunny bags (₹/bag) (13.3 bags / tonne) 20
Assumed manure is used for fodder cultivation and remaining 40000/ year
is sold on lump sum basis (Rs.)

- Prepared by eKapte 7972542736

 ANNEXTURE -2
Financial Feasibility and Technical Data
TECHNICAL PARAMETERS -(100+5)
No. of Bucks 5
No. of Does 100
A. Production Traits
Age at Maturity (Months) 10-12 months
Kidding interval (Months) 8
Kidding percentage 85%
Twinning percentage 60%
No. of kiddings per year 1.5
Sex ratio 1:01
Mortality(%) Adults 5%
Kids 10%
Saleable age of kids (months) 08 - 09 months
Culling of does (% per year) from second year onwards 20
B. Expenditure norms
Space requirement (st.per head)
Buck 10
Doe 10
Kids 5
Cost of construction (Rs.per sft) 350
Cost of equipment (Rs.per adult animal) 300
C. Cost of Animal
a) Buck 13000
b) Does 11000
D. Cost of Feed & Fodder
a) Cost of green fodder cultivation (Rs./acre) 35000
b) No. of acres 1.50
Concentrate feed
a) Adult does (one month before breeding and one month after kidding i.e. per kidding) Rs. 9 per day

b) Bucks (two months per breeding season) Rs.15 per day

c) Kids (for 30 days) Rs.4.50 per day

Cost of conc. Feed (Rs./kg) 18
Labour (No.) 2
Labour wages (Rs.per day) 400
Insurance (as percentage of the cost of breeding stock) 5%
Veterinary aid (Rs./adult/year) 50
Water, electricity and other misc. expenses (Rs./adult) 20
E. Income norms
Sale price of Male kids (Rs./kid) 9000
Sale price of Female Kids (Rs./kid) 5500
Sale of culled does (Rs./doe) @20% from 3rd year onwords 4500
Sale price of culled Buck (Rs./buck) @25% from 3rd year onwords 8000
Income from manure is not assumed as it is used on the own farm 40000
Sale of Gunnyu bags (Rs./bag) 20
F. Repayment norms
Repayment period (years) 7
Grace Period (years) 1
Inflation rate on feed, Labour, and other cost considered as 2% PA
Interest rate(%) 12%

- Prepared by eKapte 7972542736

 ANNEXTURE-3
Financial Feasibility and Technical Data
UNIT COST FOR (100 +5) GOATERY PROJECT
S.N. Items Nos. Rate Amount
CAPITAL COST
A. CIVIL CONSTRUCTION
1 Shed for Does 100 Nos. 10 sq. ft 350 per sq. ft
350000

2 Shed for Bucks 5 Nos. 20 sq. ft 350 per sq. ft

35000
3 Shed for kids 140 Nos. 5 sq. ft 300 per sq. ft
210000

B. COST OF ANIMALS
1 Does 11000
100 Nos. 1100000

2 Bucks 13000
5 Nos. 65000

C. TRANSPORTATION COST 105 Nos. 200 21000

D. CHAF CUTTER 1 Nos. 25000 25000
F. Equipments 105 Nos. 300
31500

G. INSURANCE
1 Does 100 Nos. 825
82500

2 Bucks 5 Nos. 975

4875
H. Silage Machine 0 No. 0
0

H. Fodder cultivation 1.50 acres 35000 per Acre

52500

I. OTHERS L.S. 22625

J. TOTAL CAPITAL COST 2000000
K. RECURRING EXPENDITURE
1 Veterinary aid 105 Nos. 50 per goat
5250
3 Supplementary
a. Does 100 nos 9.0 Rs./day 60 days
54000
b. Bucks 5 nos 15.0 Rs./day 60 days
4500

c. Kids 140 nos 4.50 Rs./day 30 days

18900
d. Rent of Land 0
8 Labour wages 2 no. 6000 Per Month 12 For 6
Months 72000

L. Total
154650

M. Total Project Cost 2154650

N. Means of Finace

1 Own contribution
224650

2 Bank loan
930000

3 Subsidy Under NLM Scheme 1000000

4 TOTAL 2154650

-Prepared by eKapte 7972542736

 ANNEXTURE - 4
Financial Feasibility and Technical Data
FLOCK PROJECTION CHART - (100+5)
Sl. No. Particulars Year
I II III IV V VI VII VIII
Kidding Nos. 1 2 1 2 1 2 1 2
A. Opening Stock - Adult Bucks 5 5 5 5 5 5 5 5

Adult Doe purchased stock 100 100 100 100 100 100 100 100

B. Birth during the year 85

Male Kids 68 136 68 136 68 136 68 136

Female Kids 68 136 68 136 68 136 68 136

C. Mortality
Male Kids 7 14 7 14 7 14 7 14
Female Kids 7 14 7 14 7 14 7 14

D. Sale during the year

Male Kids 61 122 61 122 61 122 61 122
Female Kids 61 122 61 122 61 122 61 122

- Prepared by eKapte 7972542736

 ANNEXTURE -5
Financial Feasibility and Technical Data
ECONOMICS OF GOAT FARMING PROJECT ( 100 + 5)
S.N. Particulars Years
1 2 3 4 5 6 7 8
Investment 2154650
1 Income
a) Sale of animals
Sale of adult Buck - - 8000 - 8000 - 8000 -
Sale of adult Doe - - 90000 - 90000 - 90000 -
Sale of Male Kids - 549000 1098000 549000 1098000 549000 1098000 549000
Sale of Female Kids - 324410 648820 324410 648820 324410 648820 324410
b) Sale of gunny bags 20000 20000 20000 20000 20000 20000 20000 20000

C) Sale of Goat Milk 90 lit./Goat @ Rs.40/- 360000 360000 360000 360000 360000 360000 360000 360000

d) Sale of manure 40000 40000 40000 40000 40000 40000 40000 40000
Total income 420000 1293410 2264820 1293410 2264820 1293410 2264820 1293410
2 Expenditure
a) Green fodder cultivation cost 0 52500 53550 54621 55713 56828 57964 59124

b) Feed cost
Bucks 4500 4590 4682 4775 4871 4968 5068 5169
Does 54000 55080 56182 57305 58451 59620 60813 62029
Kids 18630 19003 19383 19770 20166 20569 20980 21400
c) Medicines/Vet. charges 5250 5355 5462 5571 5683 5796 5912 6031

d) Insurance 87375 87375 87375

e) Misc.(Electricity charges etc.) 12075 12317 12563 12814 13070 13332 13598 13870

f) Labour wages 72000 144000 146880 149818 152814 155870 158988 162167
g) Depreciation 67412 60671 54604 49143 44229 39806 35826 32243
h Rent of Land 0 0 0 0 0 0 0 0
3 Total Expenditure 321242 353515 353305 441193 354998 356790 446524 362033
4 Gross Profit 98758 939895 1911515 852217 1909822 936620 1818296 931377
Interest on term loan at 12% 111600 111600 95658 79715 63772 47829 31886 15943
5

6 Principal installment 0 132858 132858 132858 132858 132858 132858 132858

7 Net profit -12842 695437 1683000 639644 1713193 755933 1653552 782576

DSCR 0.49 3.09 7.60 3.24 8.94 4.40 10.25 5.48

8

Average DSCR 5.44

- Prepared by eKapte 7972542736

 REPAYMENT SCHEDULE

Particulars Year Total

I II III IV V VI
Income 4,20,000 12,93,410 22,64,820 12,93,410 22,64,820 12,93,410 88,29,870
Project Cost 21,54,650 - - - - - 21,54,650
Recuring cost net capitalized 3,21,242 3,53,515 3,53,305 4,41,193 3,54,998 3,56,790 21,81,042
Total Cost 24,75,892 3,53,515 3,53,305 4,41,193 3,54,998 3,56,790 43,35,692
Cash flow 4,20,000 12,93,410 22,64,820 12,93,410 22,64,820 12,93,410 88,29,870
Net Cash flow 4,20,000 12,93,410 22,64,820 12,93,410 22,64,820 12,93,410
Discount Factor (15%) 0.87 0.76 0.66 0.57 0.50 0.43
Discounted Income 3,65,400 9,82,992 14,94,781 7,37,244 11,32,410 5,56,166 52,68,993
Discounted Cost 21,54,026 2,68,671 2,33,181 2,51,480 1,77,499 1,53,420 32,38,277
Discounted Cash Flow 3,65,400 9,82,992 14,94,781 7,37,244 11,32,410 5,56,166 52,68,993
Discounted Factor at HRD 0.74 0.55 0.41 0.30 0.22 0.17
Discounted cash flow at HRD 2,70,396 5,40,645 6,12,860 2,21,173 2,49,130 94,548 19,88,753
Discounted Factor at LRD 0.77 0.59 0.46 0.35 0.27 0.21
Discounted cash flow at LRD 2,81,358 5,79,965 6,87,599 2,58,035 3,05,751 1,16,795 22,29,503
Bank Interest Rate (BIR) 12%
Higher Rate of Discounting (HRD) 35
Lower Rate of Discounting (LRD) 30
Internal Rate of Return (IRR) 76

- Prepared by eKapte 7972542736