This business plan proposes establishing a silage production enterprise in Chak Shahzad and Tarlai Kalan, Pakistan. Silage will be produced using machinery and skilled workers to process crops like corn stalks, sugar husks, and cotton stalks into feed for the 200 dairy farms in the local area. The plan calls for an investment of Rs. 2,528,000 with annual sales projected to be Rs. 2,700,000 and net income of Rs. 1,243,600 in the first year. The enterprise will employ 4 machine operators, 5 helpers, a sales manager, and security guard. Producing silage will provide a low-cost, nutritious alternative feed for dairy cows and allow

2. Business Plan
POTOHAR SILAGE ENTERPRISE
Group members
Akhtar Hamid
Farooq Ahmad
Arsalan Ahmed
Syed Tahir Mehmood Shah

3. INTRODUCTION
 Pakistan is 5th largest country in production on milk
in world, Dairy Farming is contributing a big part in
the GDP of the country but the production decrease in
off seasons due to unavailability of the proper
nutrients in the food of animals.
The objective of making silage is to provide the food
full of nutrients when no fresh food is available for the
animals ,and to increase the production capacity of
milk in Pakistan.

4. Silage
Silage is Green fodder compacted and stored in
airtight conditions at high moisture, typically in a
silo, and used as animal feed (such as cattle and
sheep etc )
Silage is made from green grass, crops and waste of crops like
 Corn stalks,
 Sugar husks,
 Cotton stalks
 Grasses,
 Maize
 Bajra
 Sorghum etc

5. Nature Of Business
 Product
Silage production by the use of Machinery and
Skilled workers and other resource
 Services
Opportunity to providing services of making silage by
using raw material of other farmers

6. Market research
In Chak Shahzad and Tarlai Kalan there are 200 dairy
farms including large and medium size, In medium size the
number of animals are from 50 to 100 and in large from 150
to 250 animals
Market Need
 Cost reduction and /or revenue generation:
Silage can provide a substitute for highly priced and
unavailable animal feed
 Health considerations
Silage is more healthy feed than other substitute

7. Capital investment for the Project
Capital Investment Amount (Rs.)
Land (Leased/Rental basis) 480,000
Human Resource Requirement 473,000
Machinery & equipments 775,000
Total Capital Cost 1,728,000
Initial Working Capital 800,000
Total Project Cost 2,528,000

8. INDUSTRY ANALYSIS
 Economy:
Dairy Farming is contributing a big part in the GDP
 Culture:
Pakistan is an agricultural country and most of the
people are attached
 Technology
Introducing new technology and innovation is needed
 Target Market
Chak Shahzad, Tarlai kalan Islamabad

9. Porter Five Forces Model
Weak Strong
Moderate
Huge(Normal feed)

10. PRODUCTION PLAN

11. Grass & silage protein fractions

12. Machinery
Chaff cutter
machine
Tractor

13. ORGANIZATIONAL PLAN
Human Resource Capital requirement
Description No Salary (Rs)
Machine operator/laborers 4 350/day/each for 15 days for each
batch= 350*4*15=21000
Helper 5 400*5=2000
Sale man/store keeper 1 10000/m
Security guard 1 10000/m
Form of ownership: Single ownership
Middle Level
Management-team:
Manager Operations
Manager Business Development

14. FINANCIAL PLAN
Total Project Cost Rs 2,528,000
Annual Sale Rs 2,700,000
No of Green fodder 900,000 /year
Sale price per fodder Rs 300
Cost of good sold (VC) Rs 449,000
Operating Expenses (FC) Rs 999,400
Break Even Point 3337 Units
Total Assets Rs 2,528,000
Net Income Rs 1,243,600

15. FINANCIAL PLAN
2,700,000
2,835,000
2,976,750
1 2 3
Year Year Year
Sale Revenue (Rs)
Sale Revenue

16. FINANCIAL PLAN
1,243,600
1,307,250
1,374,083
1 2 3
Year Year Year
Net Income (Rs)
Net Income