Presentation on Business plan

3. BACKGROUND
 More than 60 % of total meat consumption in
the country was met by the export from other
countries.
 National production fulfilling only the 40% of
the demand.
 In this scenario, poultry farming has got a
huge potential in Nepal.

4.  Putting this scenario into consideration, we (
Suraj, and Umesh, proprieties of Rato Bhale
company ) decided to capitalize this
opportunity to serve the people and to make
the country self dependent in the poultry
products.

5. PRELIMINARY WORK
 1000 chickens would be optimum for the
initial operation of the business.
 Production site :- Gokarna;
Plenty open space, cheap labors, road
connection, water availability and immediate
access to Kathmandu valley.
 Feasibility study by the experts shows
positive results.

6. PRELIMINARY WORK
 An area of about 10,000 sq. feet for the farm
 House with 3 rooms rented for the storage of
pellets, equipment as well as for the
employees to guard the farm.
 The land leased for 5 years with options of
extension.
 Initial investment Rs.10, 00,000
 Three lakhs from each partner and the rest
as loan.

7.  Buying chickens, building cage
house, stocking the pellets, hiring the expert
and other miscellaneous tasks.
 50% gross margin expected within 6 months
of its operations withholding the chances of
any accidental or unexpected incidence.
 Loan repayment within 3 years and obtain
the breakeven point within 2 years

8. OBJECTIVES
 Becoming the "Best and most hygienic poultry
producer in the area" complying by the national
standards for food and drugs.
 Turn in profits from the first six weeks of
operations.
 Maintain 50% gross margin ratio.
 Winning the hearts and tastes of our beloved
consumers and establishing a brand image of
the company through heavy marketing
campaigns in the first one year.

9. KEYS TO SUCCESS
 State of art cage framework accommodating
optimum number of chickens with mitigated
possible hazards.
 Diverse slaughters network, market chain
management, optimum inventory level and
‘customer is king’ policy.
 Regular visits by medical workers and
hygienic poultry house environment.

10. MISSION:
 Rato Bhale poultry producer will make its
best effort to live up to the consumer’s
expectations by delivering the best of its
product to the end users. The nutritious and
protein rich product from our farm would
always be the first choice of our consumers.

11. COMPANY SUMMARY
 Limited liability company, producing
chickens, eggs, and, litter as a by-product in
its state of art poultry farm units.
 Status: small and cottage industry.
Ownership structure
 The company would be jointly owned by Mr.
Suraj Ghimire, and Mr. Umesh B.C. It would
be a partnership enterprise with each of the
owners holding 50-50 % of the share

12. PRODUCTS
 In the phase I, only mature broiler hens
produced for the purpose of meat.
 Achieved by using highly-nutritious pellet
ingredients and a high level of hygiene.
 Battery units accommodate 9X9 inch space
per Hen.
 Price list would be verified with the latest
market trend and optimum mix for demand
and supply would be maintained.

13. MANAGEMENT TEAM
 Energetic and able managers cum owners.
 Mr. Suraj Ghimire as the General Manager
and also responsible for the sales, marketing
and operation department.
 Mr. Umesh BC responsible for the
HR, finance and public relation department.
 Advisory board consists of dignified
personalities like Mr. Sushil Pant, Dr Shyam
Maskey and different experts in the field.

14. MARKET NEEDS
 Average per-capita consumption of poultry meat
and eggs stands at 9 kg and 120 pieces.
 Commercial poultry farming is growing at a rate
about 15 % per annum.
 Broiler live chickens per year ~ 56.1 million.
 Annual egg production ~ 714.6 million.
 Over 2,500 poultry throughout the country.
 >NPR 16 billion invested in poultry business.

15. MARKET SEGMENTATION
 Focus the highly acclaimed slaughters house
which supply meat to the various class of
customers.
 Target groups would be the high end
customers vying for the best possible
chicken.
 We want to displace the import of chickens
from countries like
Bangladesh, India, Indonesia, Brazil, etc. by
50% in 5 years.

17. Start-up Summary:

18. THE START-UP EXPENSES (RS 96,000)
 Hiring advisors and technical experts Rs10,000.
 Brand development Rs5,500; Brochures and
pamphlets (3,000 pieces at Rs0.1per copy) total
amount Rs5,700.
 Insurance coverage at a total premium of Rs4000.
 Pre-paid rent six month at Rs1 per sq.ft. totaling
Rs60,000.
 Battery style cage structures build up of Rs2,000.
 Transportation Rs2,000; phone and utility deposits
Rs2,000
 Stationeries and Office supplies – Rs300

19. REQUIRED START-UP ASSETS RS904 ,000
 Operating capital Rs45,000; salary of unskilled labors (2x4,000)
Technician's salary of Rs7,000 for the first month and cash
reserves for the first three months of operation (approx.
Rs10,000/month).
 Bank balance Rs3,82,000.
 Start-up inventory Rs95,000, includes:
 Broiler chicks (1000 heads @ Rs30/head) – Rs30,000
 Pellet balls (30 quintals @ Rs3,000/qntl)– Rs90,000
 Protein supplements, vitamins & antibiotics – Rs5,000
 Equipment and machineries
 Nets, baskets, buckets, tillers & misc. – Rs17,000
 Heating, lighting system and pellet machine –Rs40,000.
 Farm house building – Rs200,000.

20. REQUIREMENTS OF POULTRY FARMING
 Site selection
 Link with motor able road,
 Abundant water supply,
 24 hour electricity and all around communication facility.
 Shape and size
 We can start with any amount of fund and infra -structures.
 Chicken can be even brought up in households feeding over
spillover foods and other wastes.
 Optimum number of chickens and corresponding size of the
farm should be considered provided with abundant resource
of pellets.

21.  Poultry expertise
 A specialist on the field of poultry with the
knowledge of diseases and medications would be
in constant contact.
 Regular inspection of the farm by vet nary doctors
should be made.
 The workers should also have some knowledge of
handling the chickens and identification of
diseases.

22.  Acquisition of materials:
 Raw materials should always be available and
stock should be plenty as chickens cannot
survive much without food.
 Pellets bought in big lots provide economies of
scale.
 Protein rich supplements, antibiotics and
vitamins should also be given in regular basis.
 Required amount of feed and day old chicks will
be imported.

23.  Marketing and distribution
 Poultry farms, with the broilers, won’t make profits if the
finished products i.e. hen are not taken to the market after
specified time normally 6 weeks.
 After 6 weeks the hens won’t convert the feeds into flesh
so, it would be unproductive to hold them any longer.
 Preparation and disinfection of shed
 Floors ,interior of the walls & roof will be scrubbed to
remove litters
 Dust from pens will be washed with fresh water and
battery brooders will be disinfected using 5% phenol
solution ,followed by spraying of 3% solution of Korhsolin
(disinfectant) inside and outside the shade .

24.  Feeding
 Starter ration from 0 to 3 week.
 The ration will have energy value of 3200MEKcal/kg.
 A combination of 23.5 sesame meal and 28%
soybean meal gives good result in broiler
performance ,provided the minimum recommended
levels of lysine ,methionine and cysteine.
 Diet formulated using locally available sesame seeds
without a premix, produces a weight gain about 20%
lower than attained by a commercial diet , with 15%
inferior feed conversion and a similar mortality.

25.  Vaccination and medication
To maintain health of poultry, timely vaccination
and medication by vet nary will be done.
 Litter management
 Rice husk will be used as litter by maintaining 5
cm thick on floor.
 The litter will be stirred twice in a week to
prevent watery.
 Wet litter will be removed and dry will be
replaced. Before placing the litter in poultry
house, dust lime will be used as disinfectant.

26.  Brooding and rearing:
 After receiving of chicks they will be put in pre-heated
brooder with proper temperature of 90 to 95 degree
Celsius with adequate dry litter.
 The temperature is maintained as below:
 Age temperature (°F)
1st week 95
2nd week 90
3rd week 85
4th week 80
5th week 75
6th week 70

27.  Lighting management:
 Brooder house will be provided with 24 hour light
throughout the growing period with one 60 watt bulb for
each 200 sq. feet of floor space.
 Floor space:
81 sq. inch per bird will be provided.
 Vaccination:
Broiler will be vaccinated as follows:
Age days of vaccination
One day Marek or F1 vaccine
14th day Gambaro intermediate
26th day Ranikhet F1 or Lasota.
28th day Gambaro intermediate

28. OBSERVATION
 Initial weight
 Weekly live weight
 Weekly feed consumption
 Average weekly feed intake
 Average daily gain
 Daily water consumption
 Weekly live weight gain
 FCR=Average daily feed intake
 Average daily gain
 Economics of production
Net income per bird(RS) = Gross income-Gross expenditure/Number of
live birds
Net income per kg live weight = Net income from bird/Total live weight of
bird

29. PLAN OF WORK
Month Work schedule
 January 15th day-shed preparation
20th day – disinfection of shed
25th day – buying of chicken
February 1st day-ration feeding; live weight
March Similar as February calendar
April Selling in market and consumption
Expected outcomes
 The weekly weight gain and feed efficiency will be known.
 Growth performance of broilers will be identified.
 Carcass characteristics and nutrient digestibility will be
identified.
 Rearing of broilers will be known.

30. BUSINESS RISKS
Financial Risks
 Changes in our own or competitors' pricing policies
 Fluctuations in expected revenues from
distributors, retailors and strategic partners.
 Timing of costs related to acquisitions or payments.
Legislative / Legal Landscape
 Malpractice and other related liability
 State regulations on quarantine, insurance and the
practice of medicine.
 Storage, transmission and disclosure of firm’s
information and hygiene records

31. STRATEGY
 Anticipate and respond to consumer preferences for
content, Preference and service.
 Attract, excite and retain a large audience of consumers to the
Rato Bhale Products.
 Create and maintain successful strategic alliances with high
quality partners
 Build the Rato Bhale brand rapidly and substantially
 Timely availability of budget and feeds.
 Compete effectively against better-established Rivals, like Ratna
Hatchery (P) Ltd , Gems Agro Livestock Industries Pvt. Ltd etc
 Assumptions
 Poultry raising environment will be favorable for growth.
 Poultry grower will adopt technology
 Outbreak of birdflue remains normal

32.  Financial Plan:
 The owners have provided the company with
sufficient start-up capital.
 With successful management aimed at
establishing and growing a loyal customer
base, the company will see its net worth
doubling in two years.
 Rato Bhale will maintain a healthy 50% gross
margin, which combined with reasonable
operating expenses, will provide enough cash to
finance further growth.