POULTRY HATCHERY UNIT
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- Curtis Greene
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1 POULTRY HATCHERY UNIT Introduction : Poultry meat is the fastest growing component of global meat production. Poultry production in the country has shown a steady increase in the last decade. As a result, there has been a sharp rise in the availability of eggs and broilers. The country produced 800 million broilers in 00 as compared to 350 million in 995. The production of poultry meat in 00 was 975 thousand tons as compared to 576 thousand tons in 995. The value of India's poultry exports between stood at Rs crore. India, the world s second largest developing economy, now has a large and rapidly expending poultry sector. The Indian Poultry industry has transformed from meager backyard farming to a well-organized scientific techno commercial industry. Majority of Poultry industry is in organized sector contributing nearly 70% of the total output while rest 30% is coming from unorganized sector. The Status of poultry sector during 0 th Plan was significant by contributing about,000 crores to national GDP, ranking 4 th in egg production and 9 th in broiler production in the world. The production was 45. billion eggs and about.0 million tons of chicken meat. The sector provides a great employment opportunity. It is estimated that more than million people are employed directly or indirectly in this sector. It is further estimated that an increase of one egg and 50 gms of meat per capita consumption would create an employment opportunity for about 5,000 and 0,000 persons, respectively. Product uses: Poultry meat is the fastest growing animal protein, the uses of eggs and broiler meat are on the increase with growing population. Chicken is most popular causing among the non-vegetarian delicious dishes on Indian dining table is one or other type of the chicken based items. Market Potential: Despite the fact that the country's poultry industry is the fastest growing in the world, its potential to attract big-time foreign investment is negligible and will necessitate a host of changes greater integration, better cost-efficiencies and improvement in distribution. Poultry industry's potential for growth also stems from the fact that 80 per cent of India is nonvegetarian. Besides, poultry has no religious sentiment. India is likely to be among the fastest growing poultry consumption nations, due to rising affordability, population growth and conversion from vegetarianism. This is one reason that international market may look at the Indian poultry industry. In the Northeastern states there is a substantial shortage of chicken meats and eggs against the market demand. The poultry industry is well dominated in the Southern states of the country with nearly 60-70% of the total output coming from these States. However, marketing of the final product is still under the control of traders. Production Capacity (per annum): The capacity of the proposed unit has been estimated as under: Production per batch in 7 days 000 chicks 7,000 nos. Annual Production in 350 days 3 batches 3,5,000 nos. Basis: No. of working days: 350 days per year 383
2 Infrastructure Requirement: The main Infrastructure facilities required are: Required shed: ` 800 sq.ft. Office cum Store 00 sq.ft. Power requierement: 5 KW Water (required in every working day) 5,000 Ltrs Raw Materials/Consumables: The basic raw material for hatchery is foundation egg. The fonudatic egg will be required to procure from outside the region. The other materials are medicines, glucose and poultry feed which are locally available. A. Foundation Eggs for broiler/layer Rs each, Annual Cost of Raw Materials 3.5 nos.x Rs each Rs..06 Lakhs, B. Medicine/Vaccination etc. Rs..00 each,total Rs.7.0 Total Cost of Raw Materials/consumables Rs 8.08 Lakhs Process of Manufacture: The major process steps are: - (A Collection of eggs, (B. Testing of eggs using testing machine, (C. Laying the selected eggs inside the incubator carefully for setting, (D. After 8 days transfer the eggs to planting chamber, (E. The hatchery operation is 3 days duration. After 3 days baby chicks comes out from egg shell, (F. Removing baby chicks from the incubator, (G. The second batch of eggs should be placed in incubator after 3 days gap from the first batch operation. (H. Placing the baby chicks in separate chamber, (I. Medicines to be placed in incubator to avoid deceases. Suggested Location: Hatchery unit can be set up in the state capitals of Northeastern region and all district head quarters of Sikkim Such unit can also be set in other cities, towns and major urban centers keeping in mind the available transport network within the states/regions preferably Air Linkage. PROJECT ECONOMICS The total capital requirement estimated is Rs. 8.5 Lakhs as given below: Fixed Capital: Land 000 sq.ft. Rupees Own/lease Building/Civil Works a.) Hall cum shed 800 Rs. 700/sq.ft. 5,60,000 b.) Office/store 00 sq. Rs 600/ sq.ft.,0,000 c.) Water System (including Bore Well + over head tank etc),0,
3 Plant and Machinery 3,5,000 Miscellaneous Fixed Assets, Electrical works & Other equipments,00,000 Preliminary and pre-operative expenses 50,000 3,0,000 Working Capital: (Norms) Raw Materials/Consumables month,34,000 Working Expenses month 4,000 Finished Goods 5 days,40,00 Receivables 0 days,35,000 5,50,000 Note: Working capital to be financed as:- Margin Money:,94,000 Bank Finance: 3,56,000 Means of Finance: Promoter s Equity 3,76,000 Term Loan,0,000 4,00,000 Production Expenses: Profitability: Raw Materials/Consumables 8,08,000 Wages & Salaries 3,83,000 Utilities,06,000 Repair & Maintenance 5,000 Administrative Overheads 40,000 Selling Expenses 0% on sales 4,9,000 Depreciation 85,000 Interest,93,000 4,3,000 Based on the sales Turn over and the production Expenses. The profit would be Rs Lakhs per year. This works out to a return on capital investment of 4 %. The Unit would break-even at about 48% of the rated capacity. Break Even Analysis: A. Variable Cost: Raw Materials/Consumables 8,08,000 Utilities,06,000 Selling Expenses 4,9,000 34,05,
4 B. Semi-Variable Cost: Wages & Salaries 3,83,000 Repair & Maintenance 5,000 Administrative Overheads 40,000 Depreciation 85,000 Interest,93,000 7,6,000 C. Sales Turnover: 49.4 lakhs D. Contribution: 5.09 lakhs E. Break Even Point: 48% Manpower Requirement: Personnel Nos. Salary per person Salary Bill (Rs) (Rs.) Supervisor (Technical) Skilled Workers Semi-skilled Workers Salesman Total Rs. 9,000 Salary Bill Rs Lakhs + 0% annually i.e. Rs Total Annual Salary Bill: Rs Sales Realisation: By sale of day old broiler and layer chicks at Rs. 4.00(avg.) at ex-factory rate the total sales realization would be Rs Lakhs Plant & Machinery: Particular Poultry egg setter 30,000 eggs capacity chickman series, pressed laminated panel without bottom. Poultry Egg hatcher 0,000 Eggs capacity chickmam series,fiber body,without bottom Essential spares/ Accessories Like: Setting Trolley Electric motor ¾ H.P. Electric motor / H.P. Electric motor /3 H.P. GE Transfer table Jumbo Thermometer Relay Box Turning Timer Dry wet Thermometer Heater U type Solenoid valve complete set Solenoid Coil Qty. Price Nos (Rs.),70,000,70,000 98,000 98,000 4 Total Rs.,68,000 5,000 Add. 0% on the cost of P/M as C.S.T. packaging, forwarding, loading/unloading etc.,93,000 59,000 Total Rs. 3,5,
5 Highlights: The Major highlights of the project are as follows: Address of Machinery Suppliers: Total Capital Requirement Rs. 8.5 Lakhs Promoter s Contribution Rs Lakhs Annual Sales Realization Rs Lakhs Annual Production Expenses Rs. 4.3 Lakhs Annual Profit Rs Lakhs Return on Sales 6% Break-even Point 48% No. of person employed 5 M/S Karamsar Poultry Appliances(Regd.) C-0,Hari Nagar Clock Tower, New Delhi-0 64 M/S Metro Poultry Products (I) ltd. Paltanbazar,Guwahati-3 387
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