Invest in Dairy Business and earn 30% returns Per year

[dairyman]

Check your assumptions

Dear Manas

I very strongly recommend you to do some ground work and visit a few dairies to understand economics.

Your assumption that an animal needs just 2.5kg of feed for body maintenance is grossly wrong. In fact it would need 2.5% of its body weight as dry matter for body maintenance. So a cow which is about 300 kgs would need about 7.5 Kgs of dry matter and that is just 200% more than your assumption. Please have a relook at such important factors.

You have just started, see one cycle whether all the animals conceive on time or not..generally they would not and the dried animal need to be fed with existing income. Many people don’t consider tis costs as excel sheet which makes project reports would not give you many options. Mastitis/milk fever is another commong disease which will eat into your profits with out you even realizing it . These are all issues you need to factor in before getting into it not after.

Your assumption/claim that you would get above Rs.18 per litre is also wrong. Any animal that gives 20 lit generally would give milk of 3.5% fat -3.7% fat. Now even at best of Tirumala dairy rates which is Rs 140 per KG TS..( I hope you know double axis pricing and total solids pricing mechanism) you can get at best 16.80 to 17.08 .now that is a clear rupee less than your claim. Just go through one of your payment sheet you will understand this. Just publish one fortnight’s sheet then I would believe your claim.

There are lot of people egging you to go on..as I can assess they are mostly balcony players who will enjoy the show at your cost. You would be forced to learn the hard way. Read postings of a few people like Prateek vaish, CN Sant, Another prof from gulburga..which will educate you on right things. In fact our moderator ashwini also started posting good and valuable information off late go through them

As per publishing my details..as I see your cup is full…you are not in a position to appreciate contra view which is very necessary for learning. You are a HR fellow I need not tell you this. I will let you know my economics the moment I get a sign that you are willing to learn.
As always ..All the best.

For you dairy could be a business..for me its passion.

dairyman

 

[manas reddy]

Assumptions?

Mr. Dairyman, first i have visited profitable dairy farms in bangalore and other parts of karnataka and learnt best practices from them. Second plz explain your defanition of dry matter, are you talking about fc or dry fodder fc is what we feed the cows apart from green fodder and dry fodder. i do not know how milk price is calculated in your location but near my farm it is based on milk fat and snf on an average the fat is 3.5 and snf is 8.2 the rate is 17.5 plus re 1 dairy bonus per liter and finally every healthy cow of good breed will concieve in time, every expert will agree to this............all i can say is that the profitability of dairy is dependent on the management it can be highly profitable only if you handle it as a business my passion is riding motorcycles on the country side but will it make me rich? If you are not a business man you cannot handle a business

 

[dairyman]

need further clarification

Dear Manas

Any where in the country milk price is based on fat and SNF. In case of buffalo milk price in paid on the basis of KG fat. ( dairies in turn arrive on the basis of double axis where in Fat & SNF prices are arrived) In case of cow the rpice is arrived on the basis of total soilds, which is a sum of Fat and SNF. If your milk is having 3.5% fat and 8.2% SNF, you can get a price of 16.30 @Rs 140 per TS + whate ever bonus. Infact 8.2% milk is considered as sub-standard. Would be happy to see your fortnight payment sheet so that a clarity will emerge.

Check out section 45 IA of RBI act which prohibits certain business to collect deposits/ loans by offering higer returns. Tell us how you will be avoiding that section applicable to you.

Regarding mixing business and passion. I agree to disagree with you, as I feel where passion is not there business cannot give you optimal profits. But you can certainly have you view on that.

Look dear all this I am writing to you out of my passion for dairying and as a fellow dairy enthusiast, not to trouble you. Now you imagine I am running a dairy which is five times your size and profitably for the past four years ( first year I incurred a loss due to non conceiving of animals), you are making snide remarks on me indictaing I may not be getting profits. Look at my posts all I have told is dairy is profitable and its very diffcult to get 30% returns but not impossible. Has any of the dairy farms you have visited reporting 30% profit consistently if so please let me know I would like to visit and learn and correct my practices.

Looking forward to see your payment sheet as it will give me further clarity to make an investment decision in your dairy. I am seriously into dairying and would like to invest only after getting clarity. Now ask all those dairy enthusiasts who are egging on you to go..how many of them will invest.

regards
Dairyman

 

[antony_pratap]

I will invest

Hello Manas,

I'm ready to invest the minimum sum you ask for, however I would like to know the following things before I invest.

1. Are you a certified company to take investment from Public

2. Do I get a government certified bond from you on my investment and which included the details of my returns 30% on date mentioned and if you fail to return am I legally entitled to sue you base on the bond I receive.

3. Once I get the above details from you, I would defiantly like to visit your farm and if I can get a glance at your pervious performance and your current performance.

All the very best.

Thanks,
Antony

 

[seahorsetrading]

Dear mahesh garu,
Iam rajesh here from hyderabad.kindly give me ur contact number so that i can talk to u about the investment proposal in your diary farm.
rajesh

 

[manas reddy]

Clarification

Dear Dairy man,

Milk price is not the same in all the areas, in fact 2 months back we used to get a price of around Rs.15.5/day my brother along with the local dairy farmers visited the tirumala head office in chittoor and had a meeting with them and highlighted that the KMF dairy which is right across the border is paying Rs. 19 for the same quality of milk and after a lot of negotiations we were able to get a price of Rs.18.5/liter including the bonus


section 45 IA of RBI act is actually a Non Banking Financial companies ACT, which includes all companies involved in non banking financial business

following is the link for further explanation Non-banking financial company - Wikipedia, the free encyclopedia

Business Portal of India : Business Financing : Non-Banking Financial Companies (NBFCs)

the ACT dose not include any other form of business apart from NBFC (Non Banking Financial companies) we are not a financial company

Secondly

Bonds - no company can issue bonds with approval - but we are not issuing bonds

As i clearly mentioned earlier, if you are an investor you will be giving a loan to the dairy farm there is no question of bonds

Finally for the payment sheet please send me your contact detail through PM and i will send you the payment sheet

Manas Reddy

Dear Manas

Any where in the country milk price is based on fat and SNF. In case of buffalo milk price in paid on the basis of KG fat. ( dairies in turn arrive on the basis of double axis where in Fat & SNF prices are arrived) In case of cow the rpice is arrived on the basis of total soilds, which is a sum of Fat and SNF. If your milk is having 3.5% fat and 8.2% SNF, you can get a price of 16.30 @Rs 140 per TS + whate ever bonus. Infact 8.2% milk is considered as sub-standard. Would be happy to see your fortnight payment sheet so that a clarity will emerge.

Check out section 45 IA of RBI act which prohibits certain business to collect deposits/ loans by offering higer returns. Tell us how you will be avoiding that section applicable to you.

Regarding mixing business and passion. I agree to disagree with you, as I feel where passion is not there business cannot give you optimal profits. But you can certainly have you view on that.

Look dear all this I am writing to you out of my passion for dairying and as a fellow dairy enthusiast, not to trouble you. Now you imagine I am running a dairy which is five times your size and profitably for the past four years ( first year I incurred a loss due to non conceiving of animals), you are making snide remarks on me indictaing I may not be getting profits. Look at my posts all I have told is dairy is profitable and its very diffcult to get 30% returns but not impossible. Has any of the dairy farms you have visited reporting 30% profit consistently if so please let me know I would like to visit and learn and correct my practices.

Looking forward to see your payment sheet as it will give me further clarity to make an investment decision in your dairy. I am seriously into dairying and would like to invest only after getting clarity. Now ask all those dairy enthusiasts who are egging on you to go..how many of them will invest.

regards
Dairyman

 

[manas reddy]

Clarification

Dear Mr. Antony,

Thanks for your interest,

1. As per my earlier post, there is no certification or approval required to take loans
2. Govt. certification is not required since this is a loan that you will provide, there will be a contract which is legally binding which entitles you for the 30% returns as well and you can sue i do not pay the promised returns or the principle amount
3. Please send me your contact details as a Private Message, once i talk to you ill give you further details

Manas Reddy

Hello Manas,

I'm ready to invest the minimum sum you ask for, however I would like to know the following things before I invest.

1. Are you a certified company to take investment from Public

2. Do I get a government certified bond from you on my investment and which included the details of my returns 30% on date mentioned and if you fail to return am I legally entitled to sue you base on the bond I receive.

3. Once I get the above details from you, I would defiantly like to visit your farm and if I can get a glance at your pervious performance and your current performance.

All the very best.

Thanks,
Antony

 

[prateekvaish]

Facts about Economics of a dairy farm (HF Crossbreed)

Dear All,
Greetings ! this post has generated a lot of debate on economics of a dairy farm. The facts are given below (Assumptions :- dairy farming with HF cows with 20 lits average peak production and price of cow milk to be taken at 20(max) The present procurement rate of cooperatives is around 17 + society commission + 3% (conversion of lits into kg) + bonus for clean milk production and price growth.

total milk produced per animal in a year = 4000 kgs minus 10% (provision for illness, mastitis, natural factors) =3600 kgs per cow.
Inter calving period assumed to be 14 months
but let Average production per cow per year = 3500
Revenue generated per animal = 3500*20 = 70,000
Feeding cost per animal(min) = Rs. 36000
HR cost = Rs. 4000 per animal
Veterinary expense = 1000 per animal
Depreciation on livestock = 8000
Insurance premium = 2000 per animal
min total cost = 51000
Revenue from milk =70000
gross income (without interest and depreciation on fixed assets and machinery)= 19,000/-
Total Investment = 80,000/- (min) per animal(cost of animal+ proportionate cost of building/shed+ plant and machinery+ misc etc)
ROI from milk alone (maximum) = (19000/80000)*100 = 23.75 % max.

Now, it doesn't mean that Manas can not do dairy farming with lucerative returns. All he needs is to focus on efficiency parameters like calf survival rate, average age of maturity of heifers, average intercalving period, etc.
Dairyman's opinion is also very correct as ROI is treated as only income generated from milk and cowdung because livestock increment is a balance sheet item (current asset) and not a revenue item.
The only issue i am concerned about is that to achieve an average peak yield of 20 lits the average age of the animal would be not less than 5 years which actually should have been less than 4 years in a new farm. It means higher depreciation on livestock and higher culling rate of animals as well.
Advise to Manas :- All the best ! Industry is developing and you can grow and develop a good dairy farm. Try sourcing funds from nationalized banks and the rate of interest shall be that of agriculture term loan. leveraging of capital is ok but Try to keep debt equity ratio healthy.
(THE writer is Gold Medalist MBA from a top rated university, having dairy farming experience of more than 25 years ,Currently managing a dairy cattle breeding farm of more than 350 cows)
Prateek vaish
Vice President Operations
Model Dairy Farm
Phone :- 09936286478
Email:- prateekvaish@yahoo.com

1.

Dear Dairy man,

Milk price is not the same in all the areas, in fact 2 months back we used to get a price of around Rs.15.5/day my brother along with the local dairy farmers visited the tirumala head office in chittoor and had a meeting with them and highlighted that the KM F dairy which is right across the border is paying Rs. 19 for the same quality of milk and after a lot of negotiations we were able to get a price of Rs.18.5/liter including the bonus


section 45 IA of RBI act is actually a Non Banking Financial companies ACT, which includes all companies involved in non banking financial business

following is the link for further explanation Non-banking financial company - Wikipedia, the free encyclopedia

Business Portal of India : Business Financing : Non-Banking Financial Companies (NBFCs)

the ACT dose not include any other form of business apart from NBFC (Non Banking Financial companies) we are not a financial company

Secondly

Bonds - no company can issue bonds with approval - but we are not issuing bonds

As i clearly mentioned earlier, if you are an investor you will be giving a loan to the dairy farm there is no question of bonds

Finally for the payment sheet please send me your contact detail through PM and i will send you the payment sheet

Manas Reddy

 

[prateekvaish]

small correction:-
revenue = 3600*20 = 72000
ROI = (21000/80000)*100 = 26.25

Creditors may ask for 5 year profitability statement along with DSCR (Debt Service Cash Ratio) from Manas.

 

[manas reddy]

Your assumptions are not relevent to the project

Mr. Prateek,

Nice to hear from you again, i am sorry to say that your assumptions are not relevant to my project (Assumptions :- dairy farming with HF cows with 20 lits average peak production)

i request you to read thru the post completely before commenting, since you are such an experienced professional and a gold medalist MBA i would have expected you to at least provide complete details and not act in a way that can be deter-mental to what i am trying to achieve

Following are the facts of the project

Breed - 60-70 pure HF blood
Annual production - 6000 Liters
Annual production allowing for sickness - 5500 per cow
Peak Production (Winters) - 25 - 30 Liters per cow
Current production (Summer) - 18 - 22 Liters per cow
Number of cows (Planned) - 20

Total production - 5500*20 cows * Rs.18 (min avg. sale price) = 1980000
Income from manure - min Rs. 200000
total revenue - 2180000

Operating costs (Fodder, Feed concentrate, labor and mgt.) - 33% of revenue = 719400
Operating profit:
2180000 - 719400 = 1460600/ total investment 2200000 = 63%
Total funds needed to complete the project 900000
operating profit is funds available to pay interest on borrowings and repay loans if 9 laks is borrowed as investment the annual outlay required is 270000 total funds available is 1460600

Net Profit = Operating profit

Deprecation on plant and machinery at 10% = 700000*10%=70000

Net profit after paying interest and depreciation 1460600 - 270000-70000= 1120600 = 50%

also to be considered for worst case loan repayment purpose, Appreciation on Land value - 800000(4 acers at 2 lakh per acre) * 10% per annum = 80000

i will give more details later

small correction:-
revenue = 3600*20 = 72000
ROI = (21000/80000)*100 = 26.25

Creditors may ask for 5 year profitability statement along with DSCR (Debt Service Cash Ratio) from Manas.

 

[dahiyathedon]

Hi Everybody

I am watching the discussion for the last few days.

From the all views pouring in ,I can simply extend my observation that Sh. Manas Reddy is one among the 95% of ppl who treat live stock as machines which producing milk , fueled by feed/fodder.People like Pratik Vaish & Dairyman makes the 1% and rest 4% thinks that the activity is not at all viable(100% of these 4% ppl have burnt their fingers in this lucrative business).

I have five years experience of financing around 100 dairy units in Punjab ,Haryana ,Jammu Kashmir & Himachal and visited another 200 units financed by other banks in due course.

My advice ...if making money is the sole objective of your venture please dont jump into this field ,it requires patience and more importently passion to succeed in dairy business.

 

[manas reddy]

Request and details

Dear All,

Please do not make bland and misleading statements, i have huge respect for all you people experienced in dairy industry, its a pleasure to be able to share experiences however please provide complete data and exp. background for the statements you are making

for the convenience of the people visiting the post i am providing the complete details

Following are the facts of the project

Breed - 60-70 pure HF blood
Annual production - 6000 Liters
Annual production allowing for sickness - 5500 per cow
Peak Production (Winters) - 25 - 30 Liters per cow
Current production (Summer) - 18 - 22 Liters per cow
Number of cows (Planned) - 20

Total production - 5500*20 cows * Rs.18 (min avg. sale price) = 1980000
Income from manure - min Rs. 200000
total revenue - 2180000

Operating costs (Fodder, Feed concentrate, labor and mgt.) - 33% of revenue = 719400
Operating profit:
2180000 - 719400 = 1460600/ total investment 2200000 = 63%
Total funds needed to complete the project 900000
operating profit is funds available to pay interest on borrowings and repay loans if 9 laks is borrowed as investment the annual outlay required is 270000 total funds available is 1460600

Net Profit = Operating profit

Deprecation on plant and machinery at 10% = 700000*10%=70000

Net profit after paying interest and depreciation 1460600 - 270000-70000= 1120600 = 50%

also to be considered for worst case loan repayment purpose, Appreciation on Land value - 800000(4 acers at 2 lakh per acre) * 10% per annum = 80000


My questions to Mr. Prateek,
How did you arrive at the total costs? they are too high, for eg. a cow with 3500/liters yield will cost you Rs. 30000 that's the maximum price the infra requirements for the cow is limited as the low yielding cows are resistant to climatic conditions and disease also the cost or infrastructure is different in different locations, the cost of infra for such cow in my area is 10 - 15 K, the total cost project cost per cow cannot exceed 45000/- where as you say it is 80000/- please give details of costs involved

Why are you including Depreciation on livestock since the livestock are replaced by the calves there is no point of depreciation

How did you arrive at the feeding cost ?
90% of feed cost is the cost of feed concentrate for the cross breed cows with low yield the requirement is max. 2 kg for body maintenance and 1 KG for every 3 liters of milk which is 365*2 = 730 KG add 3600/3 = 1200 KG total total feed requirement 1930 KG at 11.5 per KG (we make it ourselves) the cost is Rs.22195 FC and 2500 for dry and green fodder (the cost is less since we cultivate in our selves) total cost is Rs.24,695/- how did you arrive at 36,000/- ?

the key to any business is to keep costs low, however it seems this fact is some how ignored by even experienced professionals

finally thanks for the advice on approaching national banks, i have tried all approaches, the farm is on the border of Karnataka and A.P there are no banks in the vicinity the closest national bank is 24km away and they are not willing to provide loans since the area is not under there radar, one hope is that a NABARD associated bank is opening up in the vicinity we will try every possible way to make this a success

Finally one more thing to say even at Mr. Prateek's calculations my model is viable following is the explanation

ROI = (21000/80000)*100 = 26.25

point to note: all the infrastructure has been set up by own savings no loan has been taken till now all investments from investors will be used to purchase cows

the gross income is 21000 per cow per year, now the cow cost cannot be more than 30000/-

if total investment is 300,000/- i can purchase 10 cows hence the total income will be Rs.2,10,000/- for 3 lakhs loan i will have to pay 90,000/- per year as interest at 30% PA hence after paying interest i will have 1,20,000/- as profit for 20 cows i will earn 2,40,000/- PA as Profit

Hence the investment plan is totally viable please ask me for any doubts

 

[manas reddy]

Clarification

All,

The infrastructure requirements for the dairy farm project, including the Cow Shed, storage shed, labor sheds, Milking machine and 2 HP automatic chaff cutter has been acquired with my personal savings.

i am looking for loans for purchasing of cows only, i now have 4 high yielding HF cows and need loans to purchase 16 more cows.

All the money invested by you will be used to purchase cows and the revenue will start within a week or two of you investing.

since i have not taken any loan till now i do not have any other expenses, Hence your returns are guaranteed,

The cost of land owned by me is min. 2 lakh per acer with 4 acers the land value is 8,00,000/- since the land value will always increase you are assured of getting your investment back even in the worst case.

i will sign mortgage deed with all the investors, so that in worst case scenario you are protected.

Please send me a private message to visit the farm or to know how to invest

 

[manas reddy]

Photos of the dairy farm

All,

Please click on the link to view the photos of the dairy farm, this was taken 3 months back i will shortly share the latest photos

Farm House | Facebook

 

[manas reddy]

Clarification

Dear Dahiya,

Dahiyathedon

Please don't judge people on your assumptions,

I am a passionate individual, i am passionate of the work that i do, it may be innovating at my Job in Bangalore or building the dairy farm in my farm land, being business oriented is not lacking passion.

I am a strong believer in Hindu principles of treating cows as sacred animals, we do not send the male calves or the old unproductive cows for slaughter, we believe that what when the cows are taking care of us we should take care of the animals, treat them with respect and care of the male calf and the unproductive animals after they retire

we will raise all mail calf, the cost of raising will be recovered by selling the bulls for semen producing govt. organizations and it the calf is not of a good breed for semen production we will convert them into oxen and sell them to local farmers

As for treating animals as machines, please understand even a machine which is over worked will not give you good profits in the long term, if the dairy cow is not healthy it will not conceive on time and will not produce good milk in the long run.

Cow comfort is our primary concern we provide 4ft*6ft of standing space for every cow in the stalls and have wide passages and good ventilation

please let me know which category i fall in now

if you are convinced then please help me in getting a loan for the project, i welcome your comments and remarks

Have a great day!!!

Manas Reddy

Hi Everybody

I am watching the discussion for the last few days.

From the all views pouring in ,I can simply extend my observation that Sh. Manas Reddy is one among the 95% of ppl who treat live stock as machines which producing milk , fueled by feed/fodder.People like Pratik Vaish & Dairyman makes the 1% and rest 4% thinks that the activity is not at all viable(100% of these 4% ppl have burnt their fingers in this lucrative business).

I have five years experience of financing around 100 dairy units in Punjab ,Haryana ,Jammu Kashmir & Himachal and visited another 200 units financed by other banks in due course.

My advice ...if making money is the sole objective of your venture please dont jump into this field ,it requires patience and more importently passion to succeed in dairy business.

 

[prateekvaish]

Re: Assumptions on HF Farming

Dear Manas,

I never intend to doubt anybody's capabilities. Below given are the answers to all your projections :-

1. Cost of HF cow (production 20 kgs per day/body weight 450 kgs/ age not more than 3.5 years) = present going price approx. 50,000/-. In case you can source such cows for me @ 45,000/- each then I am ready to give you an order of 100 cows initially as a test case.

2. one can not make assumptions on the basis of insignificant sample size i.e. 4 animals. managing 4 animals and maintaining a herd are two different things.

3. Feed cost :- Even if you cultivate your own feed it has an opportunity cost and it should be transferred in the books on the basis of transfer pricing (either mark up or market price.). Now a 20 liter producing cow will require atleast 9 kgs of concentrate per day and the cost of concentrate will be minimum 12 RS. i.e. minimum feeding cost of 120/- per day during peak lactation or initial 4 months.

4. milk production :- As i quoted earlier, 20 liters peak yield means 4000 lits in a lactation. less 10% for misc. natural factors (mastitis, protozoan infections, metabolic disorders etc) = 3600 lits.

5.depreciation is always provided on livestock as its a current asset (please refer to income tax act, and basics of financial management). replacement from calves will depend on your calf survival rate, average age of maturity of calves and quality of calves (whether proven sire's genetics is being used). replcement from calves is not ignored but it significantly affects revenues from 3rd year onwards once you draw a profitability statement.

6. Finally, manas, why u feel that everybody is doubting your potential. Its a discussion, u need not try to judge others. Rather, my explanations should be helpful in making others understand that dairy farming can be profitable. My comments are not to judge your projects as i dont evaluate projects worth below 1 crore and without fee. All the best to you (and to all budding dairy entrepreneurs..)

Regards,

PrateekPnone :09936286478
Email : prateekvaish@yahoo.com
Website :- Model Dairy Farm
model dairy farm, Kanpur and Ludhiana are leaders in Dairy Cattle Breeding and Consulting since 1979.

Dear All,

Please do not make bland and misleading statements, i have huge respect for all you people experienced in dairy industry, its a pleasure to be able to share experiences however please provide complete data and exp. background for the statements you are making

for the convenience of the people visiting the post i am providing the complete details

Following are the facts of the project

Breed - 60-70 pure HF blood
Annual production - 6000 Liters
Annual production allowing for sickness - 5500 per cow
Peak Production (Winters) - 25 - 30 Liters per cow
Current production (Summer) - 18 - 22 Liters per cow
Number of cows (Planned) - 20

Total production - 5500*20 cows * Rs.18 (min avg. sale price) = 1980000
Income from manure - min Rs. 200000
total revenue - 2180000

Operating costs (Fodder, Feed concentrate, labor and mgt.) - 33% of revenue = 719400
Operating profit:
2180000 - 719400 = 1460600/ total investment 2200000 = 63%
Total funds needed to complete the project 900000
operating profit is funds available to pay interest on borrowings and repay loans if 9 laks is borrowed as investment the annual outlay required is 270000 total funds available is 1460600

Net Profit = Operating profit

Deprecation on plant and machinery at 10% = 700000*10%=70000

Net profit after paying interest and depreciation 1460600 - 270000-70000= 1120600 = 50%

also to be considered for worst case loan repayment purpose, Appreciation on Land value - 800000(4 acers at 2 lakh per acre) * 10% per annum = 80000


My questions to Mr. Prateek,
How did you arrive at the total costs? they are too high, for eg. a cow with 3500/liters yield will cost you Rs. 30000 that's the maximum price the infra requirements for the cow is limited as the low yielding cows are resistant to climatic conditions and disease also the cost or infrastructure is different in different locations, the cost of infra for such cow in my area is 10 - 15 K, the total cost project cost per cow cannot exceed 45000/- where as you say it is 80000/- please give details of costs involved

Why are you including Depreciation on livestock since the livestock are replaced by the calves there is no point of depreciation

How did you arrive at the feeding cost ?
90% of feed cost is the cost of feed concentrate for the cross breed cows with low yield the requirement is max. 2 kg for body maintenance and 1 KG for every 3 liters of milk which is 365*2 = 730 KG add 3600/3 = 1200 KG total total feed requirement 1930 KG at 11.5 per KG (we make it ourselves) the cost is Rs.22195 FC and 2500 for dry and green fodder (the cost is less since we cultivate in our selves) total cost is Rs.24,695/- how did you arrive at 36,000/- ?

the key to any business is to keep costs low, however it seems this fact is some how ignored by even experienced professionals

finally thanks for the advice on approaching national banks, i have tried all approaches, the farm is on the border of Karnataka and A.P there are no banks in the vicinity the closest national bank is 24km away and they are not willing to provide loans since the area is not under there radar, one hope is that a NABARD associated bank is opening up in the vicinity we will try every possible way to make this a success

Finally one more thing to say even at Mr. Prateek's calculations my model is viable following is the explanation

ROI = (21000/80000)*100 = 26.25

point to note: all the infrastructure has been set up by own savings no loan has been taken till now all investments from investors will be used to purchase cows

the gross income is 21000 per cow per year, now the cow cost cannot be more than 30000/-

if total investment is 300,000/- i can purchase 10 cows hence the total income will be Rs.2,10,000/- for 3 lakhs loan i will have to pay 90,000/- per year as interest at 30% PA hence after paying interest i will have 1,20,000/- as profit for 20 cows i will earn 2,40,000/- PA as Profit

Hence the investment plan is totally viable please ask me for any doubts

 

[manas reddy]

Ready to supply

Mr. Prateek,

i can supply the cows at your price, please let me know if you need all 100 together or in batches

 

[prateekvaish]

Nationalised Banks can finance you project

Manas !

With experience of 4 very substandard cows i.e. nondiscript crossbreeds of HF( i have seen pics in ur facebook a/c) you are tempted to comment on largest cattle traders and exporters of India. Learning is a slow and continuous process. Someone rightly said that " the more i know, more ignorant i become". We must have supplied more than one lakh animals to almost all states of India and various countries as well during last 30 years. Still, if you are so very competent then why are you not able to source funds from nationalised banks? Any bank in your district will finance it if you are able to produce a viable project report. In case branch is not interested you can approach directly to Zonal Office.

I seriously doubt the possibilities of Repayment of principle + interest @ 30% for an inexperienced dairy entrepreneur (plus reluctant to learn as well) /SIZE]

 

[prateekvaish]

pics of quality HF crossbreed

See Below pic of a quality HF crossbreed.

Manas !

With experience of 4 very substandard cows i.e. nondiscript crossbreeds of HF( i have seen pics in ur facebook a/c) you are tempted to comment on largest cattle traders and exporters of India. Learning is a slow and continuous process. Someone rightly said that " the more i know, more ignorant i become". We must have supplied more than one lakh animals to almost all states of India and various countries as well during last 30 years. Still, if you are so very competent then why are you not able to source funds from nationalised banks? Any bank in your district will finance it if you are able to produce a viable project report. In case branch is not interested you can approach directly to Zonal Office.

[I seriously doubt the possibilities of Repayment of principle + interest @ 30% for an inexperienced dairy entrepreneur (plus reluctant to learn as well) /COLOR]

 

[prateekvaish]

More quality HF crossbreed pics

see below more pics of quality HF CB cow !