Jakon Dairy Farms

Milk – The white gold

To establish an integrated dairy farm known

for its purity and quality of dairy products

Chitale daiy farm (Maharashtra) Rajpura diary farm (Punjab) Rajnandgaon dairy farm (Chhattisgarh) Huge dairy farms in Israel, Australia and

Newzealand

Dairy farming collection & & Production Processing

Our focus area

Milk

Other’s

A total of 50 animals on the farm Shed of 100 animals 22 bigha farm on main Jaipur-Ajmer

expressway with 300 ft. highway frontage Supplying raw milk locally - wholesale Total capital invested = 6 cr. + Lot of sweat equity!!! Capital required for expansion to 1000 animals = 6 cr.

Milk and dairy products produced at the farm itself Superior quality control Consumer trustworthiness Premium for the product None of the established dairies in the country have milk exclusively from one particular farm Can’t guarantee pure cow milk/products Quality control starts after milk from all sources is collected and mixed Can’t produce organic milk Infact, most of the processing plants have unhygienic conditions

Unmatched demand of milk in NCR Pricing – Fat content/fixed value – 16 Rs./liter No botheration of sales – Milk container filled

at the farm itself Profit/liter = 8 Rs./liter (approx.) Expected project returns – 18-24% per annum over 12 cr.

Unorganized market for farm fresh milk Health conscious consumer – Farm fresh milk

has more nutritive value 1st mover advantage Positive response from the survey conducted Marketing and sales expenses Need to establish dealer network and supply chain  Fatless cow milk – 22 Rs./liter  Fresh cow milk – 25 Rs./liter

Milk value realization: 20-21 Rs./liter Expected project returns: 27-36% per annum

over 12 cr.

Installing a processing and packaging unit Easier transportation of products Establishment of a national brand Certification from agencies Higher value realized for products in NCR &

other high end markets Expected returns – Above 35%

Strong demand in middle east, south east asia

and other countries with land-labor issues Need to establish a worldwide brand Certifications required from international agencies Expected returns – Above 40%

 Good animal selection procedures

 High yielding cows at reasonable price

 Breeding program

 Regular lactation cycle  More number of female calfs

 Proactive animal health care

 Low calf mortality rate  Minimization of productivity loss due to diseases

 Feed management

 Balanced feed at all times in lactation cycle

 Computerized data keeping

 Analysis of animal milk yield, heat detection,

disease symptoms, overall animal pedigree

Initially 10,000 lpd from 1000 cows Culling of 10% herd each year 40-75% female calf into young heifers after

2.5-3 years Exponentially increasing herd size after 3 years  3rd year – 1300-1500 cows  4th year – 1800-2000 cows  5th year – 2300-2500 cows …

Expense

Per unit cost

Total expense

1000 cows + 2.5% insurance

40000/-

4.0 cr.

4 cow sheds and 1 hiefer section Feed warehouse

16,000,00/-

0.80 cr.

20,000,00/-

0.20 cr.

Milking parlour

50,000,00/-

0.50 cr.

TMR wagon

15,000,00/-

0.15 cr.

Tractor, herd management software, RO plant etc.

20,000,00/-

0.20 cr.

Bio gas plant

15,000,00/-

0.15 cr.

Total

6.0 cr.

3,00,000 liters per month production@ 16

Rs./liter = 48 lakh/month Feed cost/animal per day = 75 Rs.  Monthly feed cost = 22.5 lakh

Medical expenses/animal/month = 150 Rs.  Monthly medical expense = 1.5 lakh

Fixed costs: Salaries, electricity, maintenance,

fuel etc.  Monthly fixed costs = 4 lakh

Total costs = 28 lakh/month Net cash inflow = 20 lakh/month

 Ever increasing demand of milk due to increasing

population  Minimum external impact

 No impact of economic cycles or downturns – Milk would

be required in worst economic conditions as well  No impact of Political environment – Milk would needed during war also  No impact of catastrophic disasters – Milk needed then as well  Provides diversification across all investment classes  High returns & high liquidity  Once established, guaranteed lifetime income  No impact of inflation on profitability  As inflation increases, dairies pass on the cost increase to

the consumers

Livestock covered by insurance – minimal risk Further diversification with various product

range Diversified markets - Local, national and international markets Easiest option of supplying to other dairies always open

Returns

20-40%

Risks

Covered by insurance

Liquidity

Daily/weekly cashflow

Capital deployment Returns starting

Over 6 months

Diversification

Low correlation with other investment options

Day the cattle is procured

Excreta management  Cow urine: Being used as a pesticide and in

ayurvedic medicines  Cow dung: Generation of bio-gas Slurry from bio-gas plant being used as fertilizer Vermicompost being made from cow dung

Kanpur gaushala society is buying cow dung

for Rs. 3/kg and cow urine for Rs. 5/liter Additional income of 10-15%

2000 existing trees on the farm 10,000 more trees would be planted for

cooling the micro-climate Additional carbon credits from  Conversion of methane & CO2 generating cow

dung into bio-gas and slurry  Electricity generation from bio-gas generator

Minimizing cattle feed costs by cultivating

fodder Agriculture income is tax free

Modern and integrated organic farm on main

NH8 – Busiest highway in India Company’s flagship store on main expressway – A symbol of pride and a medium for national / international branding  Falls on the tourist belt due to Ajmer/ Gujarat  Jaipur a popular international tourist center

Potential of opening an organic village for

tourists Potential of starting an educational institute focusing on agri-preneurship

IIT Delhi)

Mr. Madhur Singhal (B.Tech, M.Tech – Comp. Sc. – (FRM, CFA level II)

Residency

Mr. Ghanshyam Singhal (B.E. Elec. - BITS Ranchi) Singhal Exports, Jaipur

Contact : [email protected], +91-