A project report on study on foundry industry belgaum

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A project report on study on foundry industry belgaum

  1. 1. Slno. Content Page no.1. Overview of Foundry Industry 22. An introduction to Sujay Enterprise 73. Foundry Industry Process 94. Facilities available with Sujay Enterprises 105. Clients OF Sujay Enterprises 166. Background of the Entrepreneur 187. Entrepreneurial Competencies 218. Milestones of Mr. Chandrashekhar Iti 2410. Project Formulation 2611. Financing of Enterprises 3312. Establishing the Enterprise 3713. Future plans of Sujay Enterprises 3914. Role of Entrepreneurship in Economic Development 4015. Recurring problems of Entrepreneurship 4116. Dairy Farming 44
  2. 2. Study on Foundry Industry, BelgaumOverview of Foundry IndustryThe Indian Foundry Industry occupies a special place in shaping the country’s economy. India iscurrently among the 10 largest producers of ferrous and non-ferrous castings and has over 6500foundries in the small, medium, and large scale sectors. And is the fifth largest producer in termsof total casting production in the world, after US, China, Russia, and Germany. Approximately90% are in the small scale. India exports annually above Rs.700/- crores worth of castings tocountries like USA, U.K., Canada, Germany etc.Foundry Industry in figuresProduction 3 millions tonnesGrey Iron castings 2.36 million tonnesSteel castings 400 000 tonnesMalleable ans SG Iron 268 000 tonnesnon ferrous castings 20 000 tonnes 5th producer in the worldNumber of plants 5000 (estimated) 500 medium to large scale Babasabpatilfreepptmba.com 2
  3. 3. Study on Foundry Industry, BelgaumModernisation:Basic technologies have not undergone much change but the emphasis has changed. The worldhas become more environmentally conscious and technologies have to conform to more andmore stringent environment norms. The U.S. foundry population has declined by about one-thirdover the last 20 years largely due to the cost of legislative compliance. This has given the Indianproducers a good opportunity for export market. But then a reemergence in the developed worldwould be with cleaner technology. A study conducted by EXIM bank has shown that in the last10 years the exports of castings from India have increased seven-fold.However, there is a still lot need to be done. Even with these improvements the export ofcastings from India amounted to only one percent of the world requirement. In the near futurethere will be ample scope for the Indian foundry Industry to forge strategic alliances with theircounterparts in the developed countries which are on the verge of closure primarily due to threemajor reasons: waste disposal and highly stringent pollution control regulations, high manpowercosts, and acute shortage of trained personnel to work in foundries. This is where Indianfoundries can make their presence felt in the international market by approaching foreignfoundries to source castings from India at more economical prices and thus enhance their marketshare. In order to do this, Indian foundries have to equip themselves with the latest technologiessuch as Automation, Casting Simulation etc. Indian foundry industries can not afford to ignoreenvironmental implications which will also become stringent in terms of implementation ofcompliance. The industries also have to strive to adopt ecofriendly technologies.With the Indian government taking the path of de-regulation, open economy & globalization,many new green field foundries were set up, with modern equipment like High pressure moldingtechnology, automatic sand plant and latest in NDT like spectrometer, magnetic particle testing,ultrasonic & X-ray examination. Babasabpatilfreepptmba.com 3
  4. 4. Study on Foundry Industry, BelgaumEntry of many multinational units post 1992 particularly in automotive sector helped the shiftfrom small scale single owner driven foundry to medium / large sector with professionalsinducted even at departmental levels like molding, & methoding, melting, production etc.Assimilation of modern technology like simulation software, 3-D modeling of the drawing, useof computers in solidification simulation, has brought the Industry at par with the best in theworld. Due to the intrinsic better understanding of the drawings, modern equipment, lower laborcosts etc, has made the Indian Casting Industry globally competitive.Competitiveness of Indian FoundriesAfter the initial phase of increases in installed capacity, due to domestic recession which lastedalmost till 2001-2002, came the period of shake out, with weaker units either folding up orgetting merged with the stronger players. Now, since the domestic demand has picked up sincelast 6 months, the better units are now working almost to 85-90% of installed capacity. This leanperiod forced the better foundries to downsize, and increase the productivity, to fight thediminishing margins. This has made those who survived a fitter & stronger foundry highlycompetitive in the world market.Unlike the Chinese growth in export markets (which in volume / tonnage terms is far greater thanthe Indian one), Indian export growth has come in high end cast products, higher technology &complicated shaped castings, serving the Industries like auto components, pump & valveIndustry, mining & minerals & earthmoving machinery etc.India has perhaps the largest pool of engineering manpower, with 95% able to speak &understand English, offshore product development activity is possible. With about 4-5 hours oftime zone difference actually helps in working virtually in real-time. With very low machiningcosts, (and matching facilities like heat treatment, plating and painting operations) India is fastemerging as a hub for purchase of ready to use components (instead of mere casting) or at least asemi-finished component, with only finishing operations done in Europe. Babasabpatilfreepptmba.com 4
  5. 5. Study on Foundry Industry, BelgaumAdditional area where Indian foundry Industry has made a mark is in the area of valueengineering, and cost reduction, like conversion from Steel casting to ductile SG Iron casting,from Malleable iron casting to ductile iron casting, from forging to casting etc.In the last few years, large MNCs like GM, Ford, DaimlerCrysler GE Cummins, Caterpillar etchave opened their international sourcing & strategic buying offices in India to take the advantageof lower cost, good quality castings from India.With the entry of multiple auto companies since then, the Industry has modernized itself, withforging press as the main equipment. Steam hammers have given way to pneumatic & hydraulicpowered hammers, allowing closer tolerance control in hot forged condition, reducing the cutweight of the job, and reducing the component cost.This was supplemented through the latest in tooling technology through Japanese collaborations /outright purchase of technology, making Indian forgings at par in quality with the latestEuropean technology. This was also supplemented through establishment of cold forging andwarm forging units, for very close dimensional control, catering to a niche area of precisionforging used mainly in automotive field.. Babasabpatilfreepptmba.com 5
  6. 6. Study on Foundry Industry, BelgaumAn IntroductionSujay Enterprises is involved for the manufacturing and supplying of castings of Cast and S. G.Iron to automobile and allied industries The company was incorporated in the year 1982 byMr.Chandrashekhar Iti, The company exists for 23 years and has full infrastructure tomanufacture Graded C.I. Casting & S.G (Internationally known as Ductile Iron) Iron Castingalong with satisfactory machining setup and have latest testing facilities in laboratory. Today thecompany is engaged in the manufacturing of all grades of Gray Iron Casting & S.G. Iron Castingto the entire satisfaction of their valued customers. The company is equipped with all the latestequipments and such highly qualified technical personnel whose performance are backed by theiryears of rich experience.Vision StatementTo be the foundry of choice within the industry. Be efficient, thereforeprofitable for our customers & meet or exceed all their expectations, soas to foster an atmosphere of employee pride and mutual respectMission StatementOur goal is to meet our customers requirements by delivering high quality,competitively priced products, on time with excellent service so as to givethem a superior part for the best value.Statement of Values • Concern for the well-being and security of employees. • Produce the highest quality product and provide the best customer service. • Continue our tradition of strong customer and supplier relationships. Babasabpatilfreepptmba.com 6
  7. 7. Study on Foundry Industry, Belgaum • Maintain a strong financial base and continue to reinvest profits in our Company.Sujay Enterprises always satisfies their customers by supplying quality castings. • Good Surface Finish • Accurate shape and dimensional control • Freedom from defects • Metallurgical control (Hardness, micro structure)Group Companies 1. Associated Castings & Components 2. Airotek Pollu Control Projects & Equipments. 3. Airotek Private Limited 4. Airo Sales & Services 5. S-tec Systems (I) Pvt. Ltd. 6. Refricon Magic SystemsRange of Casting ProductsSujay Enterprises is serving a broad industrial base with their casting products, which are the partof a wide range of most of the well-established engineering brands. We manufacture componentsfor Hydraulic mechanism for tractors; Water pump and oil pump body for trucks; Clutches &pressure plates, brake drum insert ring and covers for two wheelers; Cylinder head piston andvalve plate for compressors; Castings components for weighing scales, etc Castings are producedto IS, BS, DIN, AFNOR, EN, ASTM, UNI and other international standards. The castings isoffered in a weight range of 50 grams to 90 kilograms per piece and is supplied in machined,semi machined and as cast condition with surface treatment as per customers need. Babasabpatilfreepptmba.com 7
  8. 8. Study on Foundry Industry, BelgaumFoundry Production Process Babasabpatilfreepptmba.com 8
  9. 9. Study on Foundry Industry, Belgaum Facilities available with Sujay Enterprises Melting Shop • Cupola furnace 36 diameter for duplexing • Pouring Trolley with laddle • Electric hoist, 2 ton capacity Moulding Shop • Moulding Machines • Sand Mullers & Mixture • Sand Grinding Machines • Sand Testing Equipment • Compressor Set Core Shop • Shell Moulding Machine • Shell Core Shooter • Electric Core Room • Compressor SetGrey Cast Iron Products: -Grey Cast Iron Castings & Components are manufactured up to a tensile strength of 300 N/mm2 Housings Brackets Chain Sprockets Impellors Adaptors Water Pump & Oil Pump Bodies Trolley Wheels Roller Wheels Babasabpatilfreepptmba.com 9
  10. 10. Study on Foundry Industry, Belgaum Brake Drums. Manual & Hydraulic JacksFoundry Division: -The foundry has a capacity of producing 4000 MT of castings annually. In a molding area of3100 meters2 (33790 feet2), molding is done on Jolt & Squeeze machines & manually. Mouldbox size is up to 600 x 600 mm. Intricate inner profiles of casting are managed on Hot Box shellcores. One 32 inches diameter cupola is used for melting the metal. Sand regeneration is througha semi- automatic process involving sand handling up to molding machines, knock out, sieving,magnetic separation and then sand mixing for green sand molding.The chemistry, microstructureand temperature of the melt are controlled to desired level by the use of instant Carbon SiliconAnalyzer .The product quality is systematically controlled right from Raw Material input stage tothe final finished product stage.Machining Division: -Initially castings are pre machined on conventional machine tools. Finish turning operations for amaximum turning dia of 350 mm are done on Lathe Machines to achieve higher dimensionalaccuracies up to 20 microns and surface finish up to 1.6  Ra.Complete geometrical parametersare controlled to the desired specifications. Milling, boring, Multiple drilling, reaming andtapping operations are done on vertical machining center with a capacity 760 x 510 x 510 mm.Broaching and Honing operations are done on conventional machine tools. Babasabpatilfreepptmba.com 10
  11. 11. Study on Foundry Industry, BelgaumTesting Facilities:BRINELL HARDNESS TESTER Beginning with drawing study, methoding on computer software, sand testing for cores and moulds, chemistry and microstructure control of melt through online analyzer, finished products are checked as per laid down systems and procedures for hardness, microstructure, tensile, elongation and compressive strength.MICROSTRUCTURE ANALYSIS & UNIVERSAL TESTING MACHINE Babasabpatilfreepptmba.com 11
  12. 12. Study on Foundry Industry, BelgaumChemical & metallurgical analysis is furthercarried out to ensure that the product qualityconforms to the customersrequirement. CAD/CAM facilities are used tomanufacture components requiring reverseengineering.ULTRASONIC THICKNESS TESTINGFully equipped in house Standards Room withcomplete methodology and qualified personnelare available to ensure high integrity of thequality delivery systems and procedures.Calibration & Validation Systems are in placefor various instruments, gauges and jigs &Fixtures.Foundry Division: -Core Making Babasabpatilfreepptmba.com 12
  13. 13. Study on Foundry Industry, BelgaumMoulding Conveyor &Knock Out System Babasabpatilfreepptmba.com 13
  14. 14. Study on Foundry Industry, BelgaumMachining Division: - Housings Brackets Babasabpatilfreepptmba.com 14
  15. 15. Study on Foundry Industry, Belgaum Impellors Adaptors Chain Sprockets Water Pump BodiesSATISFIED REPUTED CLIENTS OF SUJAY ENTERPRISES Babasabpatilfreepptmba.com 15
  16. 16. Study on Foundry Industry, BelgaumINTRODUCTIONDefinition of an Entrepreneur: Babasabpatilfreepptmba.com 16
  17. 17. Study on Foundry Industry, BelgaumEntrepreneur is an individual who starts his/her own business. He a person who assumes the riskto start a business with the idea of making a profit.Entrepreneur is one who recognizes opportunities and organizes resources to take advantage ofthe opportunity.Entrepreneurship:Entrepreneurship is a process through which individuals and groups pursue opportunity, leverageresources, and initiate change to create value. Thus, an entrepreneur is one who creates andmanages change by pursuing opportunity, acting with passion for a purpose, living proactively,and leveraging resources to create value.Background of the EntrepreneurMr.Chandrashekhar Iti born on 25th May 1953 in a village called Biranagaddi in Gokak Taluk isone among the successful entrepreneurs in Belgaum District.He completed his primary education in Biranagaddi and his graduation (B.A) in Gokak. Babasabpatilfreepptmba.com 17
  18. 18. Study on Foundry Industry, BelgaumHe lost at a very young age and thus had no support to go for further studies.He completed his graduation in the year 1974 and started looking for job. On 12 th December1974, he joined DURGA AUTO SERVICES at Belgaum as a petrol boy under the managementof Mr.Parulekar (Proprietor). He was paid Rs.100 per month. He went under quality servicetraining for a week and used to serve the customers to the best.One fine day, a gentleman Mr.Ashok Kamat drove in his car to the petrol pump. The hard workand good service of Mr. Chandrashekhar Iti inspired him, and he enquired about hisqualification. After knowing that Mr.Chandrashekhar Iti is a BA graduate, he immediatelyoffered him an administrative job in his factory, ALLIED FOUNDARIES.Thus, after completingone and a half years in DURGA AUTO SERVICES, he joined ALLIED FOUNDARIES and wasearning Rs. 125 per month.Since, he was earning Rs. 125, it was not sufficient for his livelihood. So, he started a part timejob as a paperboy. He delivered newspapers and Milk door to door early in the morning and restof the day worked in ALLIED FOUNDARIES.Later, in 1976-1977, he went to Dhamne ,a small village about 12kms from Belgaum.He stayedin the house of Mr.Yellappa Balikundri and taught tuitions to the children of Balikundri familyand traveled to Belgaum daily to work in the foundry (ALLIED FOUNDARIES).In the year 1978, he got married to Mrs.Vidya Iti.She was a teacher by profession and both ofthem started earning to live their life.In the year 1982, he decided to start his own enterprise with full support and cooperation of hiswife. He took loan of Rs.16, 000 from K.S.F.C and started his own business with a single lathemachine in a small rented shed .He worked for ALLIED FOUNDARIES for the whole day andworked alone in his enterprise from evening to late mid night. Thus, he day and night with lost ofdedication and determination. Babasabpatilfreepptmba.com 18
  19. 19. Study on Foundry Industry, BelgaumIn the year 1984, there was government self employment scheme which provided loan up toRs.25, 000 with low rate of interest for the people who desire to start their own enterprises or tobecome entrepreneurs. With this amount, he installed another lathe machine and a drillingmachine. This was the first step of his business expansion.In the year 1985,he went to Pune in search for his potential customers for his business. He met agenerous person Mr.T.P.Vartak in Pune who offered him lift in his vehicle. He askedMr.Chandrashekhar Iti about his profession and realized that Mr. Chandrashekhar Iti could be agood supplier of raw materials .He immediately took Mr.Chandrashekhar Iti to his factory namedLAKEZONE.His company was in need of winding machine spares and thus, provided a goodopportunity to Mr.Chandrashekhar Iti by placing a bulk order of winding machine spares withineight days of time.Mr.Chandrashekhar Iti worked day and night and supplied the required quantity & qualitywinding machine spares to Mr.T.P.Vartak within eight days. Mr.T.P.Vartak was inspired by thework of Mr. Chandrashekhar Iti and placed regular orders, which helped Mr. ChandrashekharIti’s business, run in full swing.In the year 1987, due to change in government policies LAKEZONE Company had to windup.Thus, Sujay Enterprise lost potential customer and the payments were held for a year. This yearit was a great loss and completely a slack season for Mr. Chandrashekhar Iti.In the year 1988, there was a flow of bulk orders from many companies such as Kirloskar OilEngines, Kirloskar Filters and Star Volkman Company etc.This year was again a boom to SujayEnterprises. Babasabpatilfreepptmba.com 19
  20. 20. Study on Foundry Industry, BelgaumIn the year 1991, Mr. Chandrashekhar Iti went for further expansion of Sujay Enterprises byinstalling two more lathe machines, two more drilling machines and a milling machine.In the year 1994, he set up his own foundry by taking a loan of Rs.3, 84,000 which was thehighest loan he had ever made.Thus, in the subsequent years, Sujay Enterprises is providing quality and quantity assurance itscustomers. Mr. Chandrashekhar Iti cleared all his loans and debts year after year by workinghard with complete dedication to his work and determination to achieve goals.Entrepreneurial CompetenciesThe underlying characteristics possessed by an entrepreneur, which result in superiorperformance, are called entrepreneurial competencies.Competencies possessed by Mr. Chandrashekhar Iti Babasabpatilfreepptmba.com 20
  21. 21. Study on Foundry Industry, BelgaumThe competencies listed below are identified during the course of study through interaction withthe entrepreneur.These competencies are explained with real facts in the life of Mr. Chandrashekhar Itias examples. 1. Initiative Mr. Chandrashekhar Iti himself took his decision to launch his enterprise in the year 1982 with a single lathe machine. 2. Seeking and Acting on Opportunities He always seeks for opportunities and acts accordingly as it happened in the year 1984 when the government provided an opportunity to expand his enterprise by installing another lathe machine 3. Persistence Mr. Chandrashekhar Iti was persistent as it is seen in the year 1987 ,his business was completely shattered ,when he lost a major contract with a Pune based LAKEZONE Company and his payments were held for more than a year. He never lost hopes after this tragedy, instead he was confident enough to recover his losses and he proved it within the next two years when he got orders from many reputed companies. 4. Information Seeker Mr. Chandrashekhar Iti is a good information seeker. Though he is an arts graduate, he has a lot of knowledge and information about machinery. It was when he was working for ALLIED FOUNDARIES as a supervisor he collected every bit of information about the business, machinery and even learnt different skills.Mr.Ashok Kamat ,Director ALLIED FOUNDARIES has been a potential source of information to Mr. Chandrashekhar Iti. 5. Quality Conscious Babasabpatilfreepptmba.com 21
  22. 22. Study on Foundry Industry, Belgaum Mr. Chandrashekhar Iti is very quality conscious .He never compromises quality with price. Because of his quality products and service, reputed companies like Kirloskar Oil Engines, Kirloskar Filters, LAKEZONE Equipments, Nexus Engines, Airotech, etc. are his prominent customers.6. Commitment towards Work Mr. Chandrashekhar Iti does every sacrifice to get the task completed. It was in the year 1985 when Mr. T.P.Vartak, Proprietor, LAKEZONE Company of Pune placed an order to supply winding machine spares within eight days. Mr. Chandrashekhar Iti himself along with his employees worked day and night, and supplied the winding machine spares to Mr. T.P.Vartak within eight days.7. Efficiency Oriented Mr. Chandrashekhar Iti makes always-tenacious efforts to get the task completed within minimum cost and time. He and his son (Mr.Sujay Iti) work along with their employees to bring out the required efficiency.8. Good Planner Mr. Chandrashekhar formulates realistic and proper plans, and then executes the plans rigorously to accomplish the task. Whenever he receives certain orders ,he estimates the cost of production ,time required, combination of raw materials available ,and then goes in for manufacturing the ordered quantity.9. Problem Solver Mr. Chandrashekhar Iti always tries to find out ways and means to tide over the difficulties. Whenever he faces problems he consults his role model, Mr.Ashok Kamat, he interacts with his employees, he consults other experts and applies best solution to his problems.10. Self Confidence Mr. Chandrashekhar Iti is a strong believer in his strength and abilities. Babasabpatilfreepptmba.com 22
  23. 23. Study on Foundry Industry, Belgaum Before he used to purchase castings from others, and then manufacture the products. In the year 1994,with full confidence, he installed his own foundry and produced his own castings instead of purchasing from outsiders.Milestones of Mr. Chandrashekhar Iti1974 - Completed his graduation as Bachelor of Arts from Karnatak University, Dharwad.1974 – Was employed as a petrol boy in DURGA AUTO SERVICES, Belgaum.1978 - He was married to Mrs.Vidya Chandrashekhar Iti1982 – Established his own enterprise with a lathe machine. Babasabpatilfreepptmba.com 23
  24. 24. Study on Foundry Industry, Belgaum 1984 – First step of business expansion by installing two more lathe machines, two drilling machines. 1985 – Obtained a major supplying contract with LAKEZONE Company of Pune. 1991 - Further expansion of his enterprise by installing two more lathe machines, two more drilling machines and a milling machine. 1994 – He set up his own foundry.How to Identify & Select Goods Business Opportunities Factors to be considered while identifying and selecting a business opportunity. • Educational Qualification. • Work experiences in and/or exposure to any industry or business. • Financial resources. • Technical skills. • Preferences for particular industrial sector or sub-sector. • Expectations about returns from the business. • Reasons for setting up an enterprise. • Attitude to a particular industry. Babasabpatilfreepptmba.com 24
  25. 25. Study on Foundry Industry, BelgaumHow Mr Chandrashekar identified & selected this particulars businessMr Chandrashekar worked for Allied Foundries for more than five years. He had enoughknowledge about the complete in and out of the business, he had learnt technical skills, and hehad a lot of support from his co-workers who helped him start his enterprise. Mr Chandrashekarfollows the footsteps od Mr Ashok Kamat Prop. Allied Foundries as his role model. Mr AshokKamat helped Mr Chandrashekar in building contacts with customers and suppliers of rawmaterial.Thus it is the work experience in Allied foundaries Technical skills , contact in industry andfinancial sector and the sincere help from his co-workes and Mr Ashok Kamat made MrChandrashekar to identify & select this particular business.Project FormulationThe first step of an entrepreneur to establish an enterprise is to formulate a project report. Areport or business plan is a written statement of what an entrepreneur proposes to take up. It is akind of guide frost or course of action what the entrepreneur hopes to achieve in his business andhow’s he going to achieve.Contents of Project Report. • General Information on product profile and product details. • Promoter : His/her Qualification, work experience, project related experience. • Location of the project, lease or free hold , location advantage. • Land & Building. Babasabpatilfreepptmba.com 25
  26. 26. Study on Foundry Industry, Belgaum• Plant & Machinery details .• Description of production process.• Utilities & sources of utilities like water, power, steam etc.• Transport & Communication.• Raw Material details.• Man power Requirements.• Market Analysis.• Requirements of working capital.• Requirements of funds.• B.E.P.• Schedule of Implementation.Preliminary Project Report Perfoma.1.0 General Name of Entreprenuer____________________________________________ Date of Birth________________ Age ________ Project ________________________________________________________ Location _______________________________________________________ Type of organization______________________________________________ Name of firm ___________________________________________________ Address ________________________________________________________ _______________________________________________________________ Babasabpatilfreepptmba.com 26
  27. 27. Study on Foundry Industry, Belgaum1.1 Educational Qualification: Qualification Institute Major Sub. Yr of passing SSLC,or below Degree/Diploma1.2 Special Traning Training in Institute Duration Achievements1.3 Work Experiences Organisation Position Nature of work Duration2.0 Details of Proposal Project ( Manufacturing/servicing )2.1 Machinery/ EquipmentS.no Description Qty price Total Name & Address of required Value suppliers1.2.3. Total Babasabpatilfreepptmba.com 27
  28. 28. Study on Foundry Industry, Belgaum2.2 Production Programme S.no Item/Product Total Qty per Sale Revenue per Capacity yr year Utilization 1. 2. 3. Total2.3 Raw MaterialsS.no Items Total Annual Requirement Source Quantity Value (rs)1.2.3. Total2.4 UtilitiesS.no Particulars Annual Total Annual Remarks Requirement Exp. (Rs)1. Electricity2. Water3. Coal/Oil4. Any other Total2.5 Man PowerS.no Particulars No Total wages & Remarks salary (rs/yr) Babasabpatilfreepptmba.com 28
  29. 29. Study on Foundry Industry, Belgaum1. Skilled2. Semiskilled3. Unskilled4. Office Staff Total3.0 Cost of the Project3.1 Fixed Capital S.no Items Value 1. Land & Building 2. Machinery/Equipment 3. Furniture & Fixtures Total3.2 Working CapitalS.no Items Duration Quality Value ( Rs )1. Raw material stock2. Semi-finished goods stock3. Finished goods stock4. One month production exp. Total3.3 Total Cost of Project S.no Particulars Value 1. Fixed capital 2. Working Capital 3. Preliminary & pre-operative exp. Total Babasabpatilfreepptmba.com 29
  30. 30. Study on Foundry Industry, Belgaum3.4 Means of FinanceS.no Particulars Value ( Rs ) Value ( Rs )1. Term loan2. Working capital loan3. Own Investment4. Subsidy Total3.5 Project Profitability AnalysisS.no Description Value1. Sales revenue2. Manufacturing Expenses (2.3+2.4+2.5)3. Selling & Distribution exp.4. Administrative exp.5. Interest6. Depreciation7. Gross Profit8. Income Tax9. Net profit Total4.0 Supplementary Details4.1 Do you own house / property, etc4.2 Own Insurances policy4.3 Any Interest in other firms4.4 You belong to SC/ST/ OBC/General4.5 Present Monthiy Income ( Rs )5.0 References Babasabpatilfreepptmba.com 30
  31. 31. Study on Foundry Industry, Belgaum S.no Name Address Occupation Date Place SignatureFinancing of Enterprises Babasabpatilfreepptmba.com 31
  32. 32. Study on Foundry Industry, BelgaumHaving prepared the project report, the time comes when the entrepreneur needs to decide on theneed for and sources of finance as per his/her prosecutions made in the project report.Finance is one of the important prerequisites to start an enterprise. In fact, it is the availability offinance that facilitates an entrepreneur to bring together land, labour, machinery and raw materialto combine them to produce goods.The various sources from which an enterprise can raise to required funds could broadly beclassified in to two sources these are: 1. Internal Sources. 2. External Sources.1. Internal Sources Internal sources of funds include the following: - Own savings and investments - Personal loans from provident fund (pf) / Life Insurance Corporation (LIC) / Co- operative Bank etc. - Personal Borrowings from relatives and friends. - Money raised through mortgage of personal assets like shares, land, buildings etc. - Profit earned or transferred from existing business/ Investment or trade.2. External Sources External sources of funds include the following: Babasabpatilfreepptmba.com 32
  33. 33. Study on Foundry Industry, Belgaum- Terms loan / Long-term loan.- Short-term loan.- Plant Leasing- Hire purchase- Working capital loan.Sources from which Mr. Chandrashekar raised the required funds to establish his enterpriseIn the year 1982 when Mr. Chandrashekar established his enterprise with a single leathmachine, he had personal savings of Rs. 4,000/- and obtained loan from KSFC of Rs.16,000/-. Babasabpatilfreepptmba.com 33
  34. 34. Study on Foundry Industry, BelgaumProblems faced by Mr. Chandrashekar to raise funds for hisenterpriseIn the year 1982 Mr. Chandrashekar had a personal savings of Rs. 4,000/- only. So he had toborrow amount of Rs. 16,000/- from others sources. He applied for loan at KSFC but could notget the loan since loan was provided to people who were Government employees or income taxpayer or one who had a guarantee of a well-known person.Mr. Chandrashekar was neither a Government employee nor an income tax payer nor he had anyperson for guarantee. In such a harsh position he approached his friend Mr. Daulat Kangralkar tobe guarantee. Mr. Daulat Kangralkar was confident on Mr. Chandrashekar’s ability to repay theloan and immediately helped Mr. Chandrashekar to avail the loan from KSFC.Mr. Chandrashekar made proper use of the funds establish his enterprise and repay the loanwithin the specified time to KSFC.Legal Formalities Babasabpatilfreepptmba.com 34
  35. 35. Study on Foundry Industry, BelgaumBefore an entrepreneur establishes his enterprise, he has to undergo certain legal formality assuch.- An entrepreneur should avail corporation license from Municipal Corporation.- An entrepreneur should avail provisional certificate from District Industrial Center (DIC).- An entrepreneur should apply for electricity sanction from KPTCL.- An entrepreneur should go in for sales tax registration.- An entrepreneur should have ‘No objection certificate’ (NOC) from the pollution control board.Establishing the EnterpriseAn entrepreneur should consider the following important steps in establishing an enterprise. Babasabpatilfreepptmba.com 35
  36. 36. Study on Foundry Industry, Belgaum1. Select the right location for the enterprise.An entrepreneur before selecting a location for the project one must weigh its advantages anddisadvantages in relation to the project. By doing so one can avoid future problems.2. Selection the right infrastructure.Entrepreneurs need appropriate and adequate infrastructure facilities to run their enterprisessmoothly. These include land, building, utilities like power and water, transportation,communication facilities, local taxes, zoning restrictions etc.3. Buying Machinery.For purchasing machinery certain guidelines should be followed like analyzing the specificationsof machinery (technical specifications), approach only established manufacturers whose brandnames have a reputation in the market, go through various option of machinery minutely,including technical specifications details of taxes, cost of transport, forwarding, installation, etc.,and even check the resale value of the machinery.4. Sources & Evaluation of raw materials.An entrepreneur should identify all types of sources of raw materials, select the best raw materialsuppliers by evaluating the price discounts, duality, transportation costs, time of delivery, modeof payments, credit terms etc.5. Recruitment, selection & training of personnel. Babasabpatilfreepptmba.com 36
  37. 37. Study on Foundry Industry, BelgaumThere is a growing realization of the urgent necessity of specialized manpower stills for industryand that success or failure of a business firm is largely dependence upon its human resources,which constitute one of its most important aspects. Hence, proper attention has to be given tomanpower planning recruitment, selection and training by an entrepreneur.6. Marketing Management.The entrepreneur reaches to the stage when production has to start. Before any produce is offeredfor sale to market, several decisions need to be taken in regard to its marketing for example theprice of the product has to be determined, the methods of marketing has to be identified and thechannels of distribution have to be worked out. Marketing encompasses different activities likeresearch, planning, branding, pricing, distribution, selling, packing, merchandizing, warehousing,after sales service, sales promotion, advertising, credit policy etc. Babasabpatilfreepptmba.com 37
  38. 38. Study on Foundry Industry, BelgaumFuture plans of Sujay EnterprisesMr. Chandrashekar has future plans for his enterprises and as well for his businessdiversification.- Mr. Chandrashekar is planning to start automobile casting and shell moulding casting due to existing demand. He is facing certain technical difficulties to implement Automobile & shell moulding casting and he is working different strategies to over come these technical difficulties.- Mr. Chandrashekar has plans to diversify in to plantation and milk dairy in the coming years. He has already owned a piece of land for plantation and even has a preliminary knowledge of milk dairy since he keeps himself busy with his work he has not been able to concentrate much on diversification, but sooner or later Mr. Chandrashekar will start his own plantation & a milk dairy. Babasabpatilfreepptmba.com 38
  39. 39. Study on Foundry Industry, BelgaumRole of Entrepreneurship in Economic Development 1. Entrepreneurship promotes capital formation by mobilizing the idle savings of the public. 2. It provides immediate large-scale employment. Thus, it helps reduce the unemployment problem in the country. 3. It promotes balanced regional development. 4. It helps reduce the concentration of economic power. 5. It stimulates the equitable redistribution of wealth, income and even political power in the interest of the country. 6. It encourages effective resource mobilization of capital and skill, which might otherwise remain unutilized. 7. It also induces backward and forward linkages, which stimulate the process of economic development in the country. 8. Last but not the least, it also promotes country’s export trade i.e. an important ingredient to economic development. Babasabpatilfreepptmba.com 39
  40. 40. Study on Foundry Industry, BelgaumRecurring problems of Entrepreneurship 1. Today’s entrepreneurs are falling short of trained and skilled laborers. Entrepreneurs are even facing a lot of labour turnover because of competitor policies. 2. Frequent power failure is hampering the smooth running of the business. 3. Financial institutes don’t provide immediate loans to meet emergencies. 4. Large-scale industries are dominating over small-scale industries run by entrepreneurs. 5. There are no technical training centers for unskilled entrepreneurs. 6. There is no parental industry near by Belgaum city, thus Entrepreneurs running ancillary industries are dependent on the parental industries based in Pune bearing a lot of transportation costs. 7. Pollution control boards often harass entrepreneurs running small-scale industries. 8. Entrepreneurs find it hard to obtain a corporation license, sales tax registration, building permissions, FWM and KPTCL permissions, etc due to severe corruption. 9. Small-scale units particularly in Belgaum have been completely neglected by the Government due to border disputes between Karnataka and Maharashtra. Babasabpatilfreepptmba.com 40
  41. 41. Study on Foundry Industry, BelgaumCharms of being an Entrepreneur 1. An Entrepreneur is an independent being. Entrepreneurship provides an opportunity for self-expression and the realization of one’s passion for doing something new and different. 2. There are numerous opportunities for self-development. 3. An Entrepreneur can make his/her own decisions. 4. Monetary rewards can be more commensurate with ones capacity and capabilities. 5. An Entrepreneur with generates employment for others. 6. An Entrepreneur fulfills and realizes goals both individual as well as that of the society. Babasabpatilfreepptmba.com 41
  42. 42. Study on Foundry Industry, BelgaumTips on being a successful Entrepreneur 1. Do not start an Enterprise without acquiring all the required knowledge about it. 2. Do not expect early and easy returns from your enterprise. 3. Be prepared for delegation whenever needed 4. Take calculated and moderate risks in the start. 5. Be a systematic planner. 6. Manage time effectively for maximum utilization. 7. Do not avoid problems anticipate them and try to solve them. 8. Be cost and quality conscious. 9. Upgrade continuously about your competitors. 10. Be assertive, direct and honest. Have commitment to work. 11. Do not hesitate to consult experts when in need. 12. Take decisions after evaluating and weighing all the implications. Babasabpatilfreepptmba.com 42
  43. 43. Study on Foundry Industry, BelgaumDAIRY FARMINGMILK IS HEALTH – HEALTH IS WEALTHAbout 70% of Indias population is living in villages and majority of them are engaged inagriculture and allied activities. With the green revolution in early 70s, the country becamesurplus in food grain production. Northern belt of India comprising of Punjab, Haryana, U.P. andRajasthan has immensely benefited by the green revolution. However, due to excessive use offertilizers, insecticides, pesticides and over exploitation of ground water resources, per acreproductivity is coming down every year. As a result, crop farming is no more economical.Therefore, in the present circumstances, it has become imperative to find out alternative avenuesto boost the net income of farmers/villagers.Dairying plays a dynamic role in Indias agro based economy. Our countrys Dairy Industry isone of the fastest expanding in the world. Ten years ago only 5% of the milk produced came intothe dairies. Today, it is 10%, and this figure will keep increasing. Today India ranks second onlyto the US in terms of milk production and it is expected that at the present rate of growth, it willsoon overtake the US.According to a recent report prepared by the Ministry of Agriculture, the dairy industry has thepotential to offer about 4.2 crore jobs a year. Today there are barely 50,000 - 60,000 trainedprofessionals in this field. Given the proper thrust, dairying could in the years ahead, become oneof the largest business sectors of the economy, even overtaking the industrial sector.Why do Dairy Farming?Dairying is an important source of subsidiary income to small/marginal farmers and agriculturallabourers. The manure from animals provides a good source of organic matter for improving soilfertility and crop yields. The gober gas from the dung is used as fuel for domestic purposes asalso for running engines for drawing water from well. The surplus fodder and agricultural by-products are gainfully utilized for feeding the animals. Almost all-draught power for farmoperations and transportation is supplied by bullocks. Since agriculture is mostly seasonal, thereis a possibility of finding employment throughout the year for many persons through dairyfarming. Thus, dairy also provides employment throughout the year. The main beneficiaries ofdairy programmes are small/marginal farmers and landless labourers. A farmer can earn a gross Babasabpatilfreepptmba.com 43
  44. 44. Study on Foundry Industry, Belgaumsurplus of about Rs. 12,000 per year from a unit consisting of 2 milking buffaloes. The capitalinvestment required for purchase of 2 buffaloes is Rs. 18,223/-. Even after paying a sum of Rs.4294/- per annum towards repayment of the loan and interest the farmer can earn a net surplus ofRs. 6000 - 9000/- approximately per year. Even more profits can be earned depending upon thebreed of animal, managerial skills and marketing potential.According to World Bank estimates about 75 per cent of Indias 940 million people are in 5.87million villages, cultivating over 145 million hectares of cropland. Average farm size is about1.66 hectares. Among 70 million rural households, 42 per cent operate up to 2 hectares and 37per cent are landless households. These landless and small farmers have in their possession 53per cent of the animals and produce 51 per cent of the milk. Thus, small/marginal farmers andland less agricultural labourers play a very important role in milk production of the country.Dairy farming can also be taken up as a main occupation around big urban centers where thedemand for milk is high.Scope for Dairy Farming and its National Importance.The total milk production in the country for the year 1996-97 was estimated at 68.6 millionmetric tonnes. At this production, the per capita availability was to be 201 grams per day againstthe minimum requirement of 250 grams per day as recommended by ICMR. Thus, there is atremendous scope/potential for increasing the milk production. The population of breeding cowsand buffaloes in milk over 3 years of age was 62.6 million and 42.4 million, respectively (1992census) Central and State Governments are giving considerable financial assistance for creatinginfrastructure facilities for milk production. The eighth plan outlay on Animal Husbandry andDairying was Rs. 1300 crores. During the VIII plan (92-93 to 96-97) average growth of 3.7%p.a. was envisaged in milk production.Market size and opportunities Babasabpatilfreepptmba.com 44
  45. 45. Study on Foundry Industry, BelgaumMarket size for milk (sold in loose/ packaged form) is estimated to be 36mn MT valued at Rs.470 bn. The market is currently growing at round 4% p.a. in volume terms. The milk surplusslates in India are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashira, AndhraPradesh, Karnataka and Tamil Nadu. The manufacturing of milk products is concentrated inthese milk surplus States, The top 6 stales viz. Uttar Pradesh, Punjab, Madhya Pradesh,Rajasthan, Tamil Nadu and Gujarat together account for 58% of national production. About 75%of milk is consumed at the household level which is not a part of commercial dairy industry.Loose milk has a larger market in India as it is perceived to be fresh by most consumers. Inreality, however, ii poses a higher risk of adulteration and contamination. Over the past 35 years,dairy farming has grown from this largely unorganized - if complex - activity, into a vastorganized industry, that encompasses not only increased production of milk and milk products,but also the breeding of higher yielding cattle, and the scientific rearing of cattle and productionof cattle feeds. This has proportionately increased the demand for trained manpower in thissector. The liberalization of the Indian economy has created a rethinking on public policystrategies regarding food security and food self-sufficiency. It would appear that a rapidlymodernizing and internationalizing India would direct its productive resources into areas where ithas greater competitive and comparative advantages. There is evidence that these policy changesare already underway. The dairy industry has been deregulated and this has resulted in greaterprivate sector participation. It seems inevitable that further reduction of barriers to market entrywould ensue. Therefore, India seems 10 offer excellent medium-term opportunities forinternational dairy marketers.If the advertisements are to be believed and it really takes one glass of milk to produce one sliceof cheese, one can only imagine how many glasses of milk are needed, not only to provide thethousands of slices of cheese that are being readily gobbled up by Indias yuppy children, butalso for regular consumption and alt the other milk derived goodies. The demand for milk istremendous, and is growing not only in cities but also in small towns and rural areas.Dairy farming is a safe business for the following reasons: Babasabpatilfreepptmba.com 45
  46. 46. Study on Foundry Industry, Belgaum • It is eco-friendly and does not cause environmental pollution as compared to other industries • Requirement of skilled labour is relatively. • Dairy product market is active round the year. • Minimum investment on inventory. (No need to stock raw materials in huge quantities.) • Entire establishment can be shifted to a new location (if need arises c e fire, floods etc.) • One can insure animals. • Less energy requirement. Biogas plant fed with cow dung can supply maximum energy to meet day to day requirement of farms. Decomposed slurry of such plant can also be effectively used as organic manure.How to start a dairy farming unit • One needs to decide first on the aims and objective of the farm. Every year there should be a progressive aim for breeding (including number of animals to be maintained) and production. • You can visit dairy farms that run on commercial basis and have a discussion with experienced farm owners, analyze every event logically and, if needed, consult with local Veterinarians for more information. • If you plan to manage the farm on your own, look for opportunities to work for an existing farm for a minimum period of six months. • Develop interest and study feed and fodder market in your region, its difficulties in relation to seasons. • Manage a good team of labourers. You need to choose hardworking, reliable persons preferably with some experience. You can also train them for specific jobs. • Visit the cattle market occasionally. Observe animals on sale and talk with persons engaged with purchasing of animals. Babasabpatilfreepptmba.com 46
  47. 47. Study on Foundry Industry, Belgaum • Read magazines on dairy industry and keep yourself informed.Middle class health-conscious Indian families prefer low fat milk for consumption as liquid milk.Therefore, a commercial farm of mixed type (Cross breed cows and buffaloes kept in separaterows under one shed) should be prefered. Thorough study of the immediate market for marketingof milk should be made. You can mix milk from both type of animals and sell as per the need ofthe market. Hotels and some general customers (can be around 30%) prefer pure buffalo milk.Hospitals, sanitariums etc. prefer cows milk.Infrastructure and manpower requirementsBuilding a dairy farm involves infrastructures like barns, sheds and stores for teed andmedication. Cattle sheds not only facilitate livestock management but they also provide shadefrom rain and sun, providing a condusive environment for hygenic milk production. The shedsshould also have facilities for watering and feeding the livestock. Detailed attention is required inthe selection and construction of the cattle sheds and barns to facilitate:- • Health and comfort of the livestock • Security for the livestock • Effective management • Avoid pollution and other disturbances • Production of quality, hygenic and fresh milkImportant factors to be considered in the infrastructure construction like cattle sheds: - • Supporting beams and building materials should be erect, strong and safe • Sheds should have good ventilation and maintain a cool environment in the building despite the hot tropical conditions. Roof-top water sprinklers may assist cooling. • Roofs should be sloped so as not to trap rain-water. Zinc and asbestos may be used due to their durability and should exceed 3.5 meters in height to facilitate ventilation. • Shed/barn flooring should be concrete, non-slippery, easy to clean and rapidly dried with a slight slope to the drains. Floors should be at least 10cm thick. Perimeter drains with Babasabpatilfreepptmba.com 47
  48. 48. Study on Foundry Industry, Belgaum 3cm: 1 meter slopes are required to dram water to retention ponds. The floors and drains should be constructed at the same time. • Feeding throughs, when used, should be big enough to contain sufficient grass. Water may be supplied in pails or special containers. For cattle sheds/ barns without feed throughs, there should be sufficiently large space between sheds for the passage of tractors or trolleys which deliver the feed. • Special enclosures for calves, stores for concentrates and other supplies should be available. Structures should facilitate future expansion. • Sufficient fenced open spaces near or with in the sheds are very useful for heat detection in female cattle. • Facilities to control livestock are required. Neck crushes for milking or treatment and artificial insemination. Structures and ropes to tie animals outside the sheds must be available. • Milking sheds should be constructed to control cows during milking. Facilities for milking and cleaning of milk containers should be made available. • All cattle shed should have electricity and clean water suppliesTechnical Feasibility - this would briefly include - 1. Nearness of the selected area to veterinary, breeding and milk collection centre and the financing banks branch. 2. Availability of good quality animals in nearby livestock market. The distribution of important breeds of cattle and buffaloes are given in Annexure II. The reproductive and productive performance of cattle and buffalo breeds is given in Annexure III. 3. Availability of training facilities. 4. Availability of good grazing ground/lands. 5. Green/dry fodder, concentrate feed, medicines etc. Babasabpatilfreepptmba.com 48
  49. 49. Study on Foundry Industry, Belgaum 6. Availability of veterinary aid/breeding centres and milk marketing facilities near the scheme area.Economic Viability - this would briefly include - 1. Unit Cost - The average unit cost of dairy animals for some of the States is given in Annexure IV. 2. Input cost for feeds and fodders, veterinary aid, breeding of animals, insurance, labour and other overheads. 3. Output costs i.e. sale price of milk, manure, gunny bags, male/female calves, other miscellaneous items etc. 4. Income-expenditure statement and annual gross surplus. 5. Cash flow analysis. 6. Repayment schedule (i.e. repayment of principal loan amount and interest).Package of Common Management Practices Recommended for Dariy FarmersModern and well-established scientific principles, practices and skills should be used to obtainmaximum economic benefits from dairy farming. Some of the major norms and recommendedpractices are as follows:I. Housing: 1. Construct shed on dry, properly raised ground. 2. Avoid waterlogging, marshy and heavy rainfall areas. 3. The walls of the sheds should be 1.5 to 2 meters high. 4. The walls should be plastered to make them damp proof. 5. The roof should be 3-4 meters high. 6. The cattle shed should be well ventilated. 7. The floor should be pucca/hard, even non-slippery impervious, well sloped (3 cm per meter) and properly drained to remain dry and clean. Babasabpatilfreepptmba.com 49
  50. 50. Study on Foundry Industry, Belgaum 8. Provide 0.25 meter broad, pucca drain at the rear of the standing space. 9. A standing space of 2 x 1.05 meter for each animal is needed. 10. The manger space should be 1.05 meter with front height of 0.5 meter and depth of 0.25 meter. 11. The corners in mangers, troughs, drain and walls should be rounded for easy cleaning. 12. Provide 5-10 sq. meter loaf space for each animal. 13. Provide proper shade and cool drinking water in summer. 14. In winter keep animals indoor during night and rain. 15. Provide individual bedding daily. 16. Maintain sanitary condition around shed. 17. Control external parasites (ticks, flies etc.) by spraying the pens, sheds with Malathion or Copper sulphate solution. 18. Drain urine into collection pits and then to the field through irrigation channels. 19. Dispose of dung and urine properly. A gobar gas plant will be an ideal way. Where gobar gas plant is not constructed, convert the dung alongwith bedding material and other farm wastes into compost. 20. Give adequate space for the animals. (The housing space requirement of crossbred cattle in various categories/age-groups is given in Annexure-VII).Selection of Animal: 1. Immediately after release of the loan purchase the stock from a reliable breeder or from nearest livestock market. 2. Select healthy, high yielding animals with the help of banks technical officer, veterinary/animal husbandry officer of State government/ Zilla Parishad, etc. 3. Purchase freshly calved animals in their second/third lactation. Babasabpatilfreepptmba.com 50
  51. 51. Study on Foundry Industry, Belgaum 4. Before purchasing, ascertain actual milk yield by milking the animal three times consecutively. 5. Identify the newly purchased animal by giving suitable identification mark (ear tagging or tattooing). 6. Vaccinate the newly purchased animal against disease. 7. Keep the newly purchased animal under observation for a period of about two weeks and then mix with the general herd. 8. Purchase a minimum economical unit of two milch animals. 9. Purchase the second animal/second batch after 5-6 months from the purchase of first animal. 10. As buffaloes are seasonal calvers purchase them during July to February. 11. As far as possible purchase the second animal when the first animal is in its late stage of lactation and is about to become dry, thereby maintaining continuity in milk production vis-à-vis income. This will ensure availability of adequate funds for maintaining the dry animals. 12. Follow judicious culling and replacement of animals in a herd. 13. Cull the old animals after 6-7 lactations.Feeding of Milch Animals 1. Feed the animals with best feeds and fodders. (Feeding schedule is given in Annexure VIII). 2. Give adequate green fodder in the ration. 3. As far as possible, grow green fodder on your land wherever available. 4. Cut the fodder at the right stage of their growth. 5. Chaff roughage before feeding. Babasabpatilfreepptmba.com 51
  52. 52. Study on Foundry Industry, Belgaum 6. Crush the grains and concentrates. 7. The oil cakes should be flaky and crumbly. 8. Moisten the concentrate mixture before feeding. 9. Provide adequate vitamins and minerals. Provide salt licks besides addition of mineral mixture to the concentrate ration. 10. Provide adequate and clean water. 11. Give adequate exercise to the animals. Buffaloes should be taken for wallowing daily. In case this is not possible sprinkle sufficient water more particularly during summer months. 12. To estimate the daily feed requirement remember that the animals consume about 2.5 to 3.0 percent of their body weight on dry matter basis.Milking of Animals 1. Milk the animals two to three times a day. 2. Milk at fixed times. 3. Milk in one sitting within eight minutes. 4. As far as possible, the same person should do milking regularly. 5. Milk the animal in a clean place. 6. Wash the udder and teat with antiseptic lotions/luke-warm water and dry before milking. 7. Milker should be free from any contagious diseases and should wash his hands with antiseptic lotion before each milking. 8. Milking should be done with full hands, quickly and completely followed by stripping. 9. Sick cows/buffaloes should be milked at the end to prevent spread of infection.Protection against Diseases Babasabpatilfreepptmba.com 52
  53. 53. Study on Foundry Industry, Belgaum 1. Be on the alert for signs of illness such as reduced feed intake, fever, abnormal discharge or unusual behaviour. 2. Consult the nearest veterinary aid center for help if illness is suspected. 3. Protect the animals against common diseases. 4. In case of outbreak of contagious disease, immediately segregate the sick, in contact and the healthy animals and take necessary disease control measures. (Vaccination schedule is given in Annexure IX). 5. Conduct periodic tests for Brucellosis, Tuberculosis, Johnes disease, and Mastitis etc. 6. Deworm the animals regularly. 7. Examine the faeces of adult animals to detect eggs of internal parasites and treat the animals with suitable drugs. 8. Wash the animals from time to time to promote sanitation.Breeding Care 1. Observe the animal closely and keep specific record of its coming in heat, duration of heat, insemination, conception and calving. 2. Breed the animals in time. 3. The onset of oestrous will be within 60 to 80 days after calving. 4. Timely breeding will help achieving conception within 2 to 3 months of calving. 5. Breed the animals when it is in peak heat period (i.e. 12 to 24 hours of heat). 6. Use high quality semen preferably frozen semen of proven sires/bulls.Marketing of Milk 1. Marketing milk immediately after it is drawn keeping the time between production and marketing of the milk to the minimum. 2. Use clean utensils and handle milk in hygienic way. Babasabpatilfreepptmba.com 53
  54. 54. Study on Foundry Industry, Belgaum 3. Wash milk pails/cans/utensils thoroughly with detergent and finally rinse with chloride solution. 4. Avoid too much agitation of milk during transit.Care of Calves 1. Take care of newborn calf. 2. Treat/disinfect the navel cord with tincutre of iodine as soon as it is cut with a sharp knife. 3. Feed colostrums to calf. 4. Assist the calf to suckle if it is too weak to suckle on its own within 30 minutes of calving. 5. In case it is desired to wean the calf immediately after birth, then feed the colostrums in bucket. 6. Keep the calf separately from birth till two months of age in a dry clean and well ventilated place. 7. Protect the calves against extreme weather conditions, particularly during the first two months. 8. Group the calves according to their size. 9. Vaccinate calves. 10. Dehorn the calves around 4 to 5 days of age for easy management when they grow. 11. Dispose of extra calves not to be reared/maintained for any specific purpose as early as possible, particularly the male calves.Reproduction performanceMost of the buffaloes are considered to be seasonal breeds with maximum calving taking placefrom July in November in almost all breeds. Buffaloes come in oestrous in cold month and aresub-fertile during hot month. Babasabpatilfreepptmba.com 54
  55. 55. Study on Foundry Industry, BelgaumSub-fertility: due to poor thermo-regulation in buffaloes andPoor nutrition: poor heat symptom-low heat detection (only lignocelluloses material straw/dryroughages)Minimum economic size to start a dairy farm?Under Indian conditions a commercial dairy farm should consist of minimum 20 animals (10cows, 10 buffaloes) and this strength can easily go up to 100 animals in proportion of 50:50 or40:60. After this, however, you need to review your strength and market potential before youchose to go for expansion.Dairy farming is a safe business for the following reasons: • It is eco-friendly and does not cause environmental pollution as compared to other industries • Requirement of skilled labour is relatively. • Dairy product market is active round the year. • Minimum investment on inventory. (No need to stock raw materials in huge quantities.) • Entire establishment can be shifted to a new location (if need arises c e fire, floods etc.) • One can insure animals. • Less energy requirement. Biogas plant fed with cow dung can supply maximum energy to meet day-to-day requirement of farms. Decomposed slurry of such plant can also be effectively used as organic manure.Limitations and constraints in dairy farming • Breeding of animals and getting expected milk yield is a biological phenomenon, which depends upon various factors. • Dairy farming, besides good planning, requires hardworking, reliable and alert manager. In India, usually persons from the family take the responsibility. Babasabpatilfreepptmba.com 55
  56. 56. Study on Foundry Industry, BelgaumInadequate management of feeding, herd health and lack of quality control in various stage ofproduction can cause major loss, affecting the profitability of the entire venture.Professional training institutes for dairy farming techniquesOpportunities for (raining are available with most of the: • Agricultural/Veterinary universities of various slates • Krishi Vigyan Kendras • State department of Animal Husbandry • You can also choose to inquire with national level organization like: National Dairy Research Institute (NDRI), Karnal (Haryana) - for training on rearing of dairy animals and manufacture of milk products. • Alternately, you can also look for training facilities of non-governmental organizations that are active in farming sectors. Reproductive and Productive Parameters (Traits) in Indian Cattle and BuffaloesSr.No Breed Age at Calving Lactation Lactation Dry Milk first interval yield (kg.) length period yield calving (months) (days) (days) kg/day (months)i) Cattle Indian breeds1 Dangi 54 17 600 300 210 2.02 Deogir 48 15 1,500 300 150 5.03 Deoni 53 14 810 270 150 3.04 Gir 48 16 1,350 270 210 5.05 Gaolao 46 16 600 300 180 2.06 Hallikar 46 20 600 300 300 2.07 Hariana 58 13 1,200 240 150 5.08 Kangayam 44 16 600 240 240 2.59 Kankrej 48 17 1,800 360 150 5.010 Khilari 52 16 240 240 240 1.011 Ongole 40 19 630 210 360 3.0 Babasabpatilfreepptmba.com 56
  57. 57. Study on Foundry Industry, Belgaum12 Rathi 40 19 1,815 330 240 5.513 Red Sindhi 42 14 1,620 270 150 6.014 Sahiwal 40 14 1,620 270 150 6.015 Tharparkar 50 14 1,620 270 150 6.016 Umblachery 46 17 360 240 270 1.517 Non-descript 60 19 405 270 300 1.5TECHNO ECONOMIC PARAMETERSi) No.of milch animals 2ii) Cost of milch animals 8,200iii) Lactation period (days) 280iv) Dry period (days) 150v) Milk yield (lts./day) 7vi) Sale price of milk (Rs./lt) 7.75vii) Sale of manure/animal/year (Rs.) 300viii) Insurance premium for five years (%) 8.4ix) Veterinary aid/animal/year (Rs.) 150x) Labour (Rs.) Family labourxi) Cost of electricity & water (Rs./animal) 100xii) Interest rate (%) 12xiii Repayment period (years) 5 Babasabpatilfreepptmba.com 57
  58. 58. Study on Foundry Industry, BelgaumMODEL PROJECT FOR TEN BUFFALOES UNITS.No. Items Specifications Phy.units Unit Cost Total Cost (Rs./unit) (Rs.)1 Cost of animals 10 8,200 8,2002 Transportation cost of 10 300 3,000 animals3 Cost of construction of Sq.ft. 650 55 35,750 shed4 Cost of Store cum Sq.ft. 200 100 20,000 office5 Equipments (chaff 10 500 5,000 cutter, milking pails, cans, technicians6 Insurance 10 328 3,2807 Fodder raising expenses 2 3,000 6,000 @ Rs.3000/acre8 Total cost 155,0309 Margin money Say 23255 (15% of total cost) 2333010 Bank loan (85% of total Say 131776 cost) 131700Annexure - VIIIFeeding Schedules for Dairy Animals(Quantity in Kgs.)S.No. Type of animal Feeding during Green Dry Fodder Concentrate Fodder(A) CROSSBRED COW Babasabpatilfreepptmba.com 58
  59. 59. Study on Foundry Industry, Belgauma) 6 to 7 litres milk per day Lactation days 20 to 25 5 to 6 3.0 to 3.5 Dry days 15 to 20 6 to 7 0.5 to 1.0b) 8 to 10 litres milk per day Lactation days 25 to 30 4 to 5 4.0 to 4.5 Dry days 20 to 25 6 to 7 0.5 to 1.0(B) BUFFALOESa) Murrah (7 to 8 litres milk Lactation days 25 to 30 4 to 5 3.5 to 4.0 per day) Dry days 20 to 25 5 to 6 0.5 to 1.0b) Mehasana (6 to 7 litres Lactation days 15 to 20 4 to 5 3.0 to 3.5 milk per day) Dry days 10 to 15 5 to 6 0.5 to 1.0c) Surti (5 to 6 litrs milk per Lactation days 10 to 15 4 to 5 2.5 to 3.0 day) Dry days 5 to 10 5 to 6 0.5 to 1.0Programme for vaccination of farm animals against contagious diseasesSr. Name of disease Type of Type of Duration of RemarksNo. vaccine vaccination immunity1 Anthrax (Gorhi) Spore vaccine Once in an year One season - premonsoon vaccination2 Black Quarter (Sujab) Killed vaccine - do - - do - -3 Haemorrhagic Ocladjuvant - do - - do - - Babasabpatilfreepptmba.com 59
  60. 60. Study on Foundry Industry, Belgaum Septicaemia vaccine (Galghotu)4 Brucellosis Cotton strain 19 At about 6 3 or 4 To be done (Contagious abortion) (live bacteria) months of age calvings only in infected herds5 Foot and Mouth Polyvalent At about 6 One season After disease (Muhkhar) tissue culture months of age vaccination vaccine with booster repeat dose 4 months vaccination later every year in Oct./Nov.6 Rinderpest (Mata) Lapinised At about 6 Life long It is better to avianised months of age repeat after 3 to vaccine for 4 years exotic and crossbred catte, caprinised vaccine for zebu cattle.Selecting the animal to farm with - Cows v/s. BuffaloesCows BuffaloesGood quality cows are available in the market In India, we have good buffalo breeds likeand it cost around Rs.1200 to Rs. 1500 per liter Murrah and Mehsana, which are suitable forof milk production per day. (e.g. Cost of a cow commercial dairy farm.producing 10 liter of milk per day will bebetween Rs. 12,000 to Rs. 15,000).If proper care is given, cows breed regularly Buffalo milk has more demand for makinggiving one calf every 13-14 month interval. butter and butter oil (Ghee), as fat percentage in milk is higher than cow milk. Buffalo milk is also preferred for making tea.They are more docile and can be handled easily. Buffaloes can be maintained on more fibrous Babasabpatilfreepptmba.com 60
  61. 61. Study on Foundry Industry, Belgaum Good milk yielding cross breeds (Holstein and crop residues, hence, scope for reducing feed Jersey crosses) has well adapted to Indian cost. climate. The fat percentage of cows milk varies from 3- Buffaloes largely mature late and give birth to 5.5% and is lower than Buffaloes. calves at 16 to 18 months interval. Male calves fetch little value. Buffaloes need cooling facility e.g. wallowing tank or showers/foggers with fan. Breeds of buffaloes of Indian origin and breeding tractsGroup Breed Breeding tractMurrah type Murrah Nili Ravi Rohtak, Jind, Hisar, Bhiwani, Sonepat (Haryana) Ferozepur (Punjab)Gujarat Surti Jaffarabadi Kaira and Baoda, Kutch, Jungarh & Jamnagar dist Mehsana, Mehsana Sabarkantha, Banaskantha Dist.Uttar Pradesh Bhadawari Tarai Bhadawari estate, Beh Tehsil in Agra, Gwalior & Etawah dist. Taarai region of U. P.Central India Nagpuri Pandharpuri Nagpur, Akola, Amravati dist. (South Maharashtra), West A. Kalahandi Sambalpur P., North Karnataka Hilly region of Andra Pradesh and Orissa Bilaspur dist.South India Toda South Kanara Nilgiri Hills, West coast in Kerela Babasabpatilfreepptmba.com 61

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