Ravi Foods - an investment proposal to set up a dairy farm and an agri-marketing company

JOINT DAIRY FARM, AGRI-MARKETING COMPANY AND BRAND
PROPOSAL
Email: info@trainingpakistan.com
A project ofTraining Pakistan Private Limited (TPPL) www.trainingpakistan.com

 To be the trusted local, home delivery,
provider of daily fresh milk and grocery
items.
A project ofTraining Pakistan Private Limited - www.traininigpakistan.com - info@trainingpakistan.com

 Establish a dairy farm on premises (as entry
strategy) for direct-to-consumer milk sales at
premium prices
 Create an agri-marketing company with its own
brand
 Leverage the existing infrastructure, location and
most importantly the 5km radius premium market
with localized, B2C, online ordering trends with
grocery items.
 Provide farmers (fruit/veg/grain and livestock
producers) training and product buy-back agreement
 Ensure marketing and sales of farmers’ products

1. Local / Neighborhood retailers
2. B2C – home delivery
3. Payment on Delivery (PoD) successful
4. Online orders
5. Preference for Fresh and Organic products

1. Invest in own dairy farm and start with
dairy milk sales as entry strategy
2. Phase in additional products
3. Build a farmers network
4. Build and test systems (database, sales etc)
5. Replicate model in other regions / areas
Build TRUST
with fresh,
quality milk

1. Dairy – fresh milk (unpasteurized, sealed
glass bottles/PP bags)
2. Fruit andVegetables
3. Value added products
4. Poultry (eggs – chicken, duck etc.)
5. Meat (Chicken, Mutton, Beef, Quail)
6. Bakery Items
7. Organic and Natural Foods Range
8. Processed Food Items
Provide a trusted
milk brand and be
the ‘neighborhood
dairy farm’

Ravi Foods
Training Pakistan
Private Limited
Investor(s)
Training Pakistan will
hold 50% of shares
Investor(s) will hold
50% shares

1. Unmatched accessibility to
higher-end society buyers &
consumers
2. Location of facility inside Lahore
3. 15 acres with developed
infrastructure
4. 50,000,000 PKR of dairy/livestock
infrastructure (minus land) in
place
5. Industrial Electrical Connectivity -
valued at 5 million PKR
Here’s what
Training Pakistan
brings to the
table

6. A staff of leading veterinary
experts and student body
undertaking LivestockAssistant
courses
7. Leading animal nutrition experts
8. Network of Fruit andVegetable
(F&V) farmers
9. Experience in F&V marketing
10. Network of organic and natural
foods producers and processors
Here’s what
Training Pakistan
brings to the
table

11. Solar Powered electricity support
12. Network of farmers & entrepreneurs
trained to produce required products to set
standards

1. Company incorporated with SECP
2. Member of Lahore Chamber of Commerce
and Industry (LCCI)
3. Affiliated with University ofVeterinary and
Animal Sciences (UVAS)
4. Registered with NationalTraining Bureau
(NTB) and registration forTEVTA under
process

Updated activities can be viewed at:
1. www.trainingpakistan.com
2. www.facebook.com/trainingpakistan

1. ParkViewVillas
2. DHA EME Housing Society
3. BahriaTown
4. Green Forts 2
5. Izmir
6. TriconVillage
7. RajputTown / MuhafizTown / Eden
8. Later on: JoharTown,WapdaTown,
Valencia, NFC etc.

1. Retail stores: F&V, Meat, Poultry,
Natural/Organic foods, Processed Items
2. Caterers: Meat
3. Canteens: F&V (b and c grade F&V)
4. HORECA: F&V (b and c grade F&V and
meat)

 Market at doorstep: Accessibility to growing
high-end housing societies within a 5 km radius
 15 acre facility that can be used to scale up
 Expertise in livestock rearing, fruit and veg, and
grocery items sectors
 On-campus expertise of veterinarians and
animal nutrition experts
 Expertise in agriculture production
 Experience in livestock and agri production
 Modern slaughterhouse next door for value
addition of meat cuts

 Capital investment
 Limited experience in running an actual dairy
farm

1. Local retail stores or businesses have been a global trend
with strong sales over mega stores/businesses
2. Online sales
3. Home delivery sales are growing and a proven model
4. Payment on Delivery (PoD) has been successful in
Pakistan and growing
5. Rapid growth in organic, natural, fresh and health foods
6. Daily grocery items have inelastic demand
7. Far too much adulterated & harmful dairy milk being sold
8. Farmers (F&V/Grains and Livestock owners) fail to get
premium market prices due to lack of marketing exposure
9. Farmers are interested to learn new technologies if they
can get higher returns and marketing channels are
provided to them

 Competitors: setting up online portal
 Ease of entry for home deliveries like F&V

1. Dairy: Milk (unpasteurized, in glass bottle/PP
bag, branded)
2. Fruit andVegetables
3. Value added products
4. Bakery Items
5. Meat & Poultry
6. Grains & Pulses (wheat flour, rice, lentils etc.)
7. Organic / Natural / Healthy
40-50% of
monthly
household retail
budget

60
80
120
0
10
20
30
40
50
60
70
80
90
100
Milk Processors Open Milk Sellers (Gavala) B2C Model
Milk Sale Prices (PKR / Liter)
Milk Processors Open Milk Sellers (Gavala) B2C Model

40% 20%
Monthly
Household Budget % Groceries
# of
Households Rev Gross Profit
30,000.00 12,000.00 1000.00 12,000,000.00 2,400,000.00
Monthly Household Budget for core grocery products of target market area (non-dairy):

1. Seasonal products: Dates (ramzan), meat
(eid)
2. Off-seasonal products: a) frozen fruit, b)
vegetables
3. Beverages

 Citrus
 Banana
 Apple
 Mango
 Strawberry
 Papaya
 Tropical
 Dates
 Potato
 Onion
 Tomato
 Garlic
 Ginger
 Leafy: corriander, mint,
lettuce
 Peas
 Eggplant
 Saag, Palak
 Okra
Fruit Vegetables

 Mutton
 Chicken
 Beef
 Fish
 Quail
 Turkey
 Eggs

 Bread
 Buns
 Cakes

 OrganicWheat Flour
 Organic Rice
 Organic Chicken Meat
 Grain-fed meat
 Gluten-free
 Specialty flours: moringa, and other
ingredients
 Honey

 Jam & jellies
 Pickles
 Dehydrated onion / ginger / garlic powder
and paste etc
 Juices
 Fries
 Select meat cuts

 Dehydrated products:
 Coriander powder
 Garlic powder / paste
 Ginger powder / paste
 Potato products
 Organic Jam / Jelly
 Olives and Olive products

Dairy: Milk F&V
Meat &
Poultry
Bakery
Organic &
Natural
Foods
Processed
Foods
Company will
operate its
own dairy
farm for milk
sales

 Cash flow from Dairy will be used to add
components of:
 F&V
 Meat and Poultry
 Bakery
 Natural/Organic foods
 Processed Food Items

1. Ramadan sales:
 Dates
 Meat
2. Eid ul Azha
 Sacrificial animal sales: male calves of dairy farm
3. Sunday Bazaar Market: Specials for
registered customers
4. Post harvest product sales (specialty
products: fusion honey, frozen fruit etc.)

 B2C – build 1,000 target consumers via dairy
milk sales
 Sales pitch: consumers will have 24/7 IP camera
access to dairy milking parlor / chiller / packaging
unit
 Start building network of farmers and initiate
short training courses

 Reduce Dairy Milk profits to 50% of total
profits
 Add HORECA – 20% of total revenue
 Add additional geographical locations within
Lahore (expand B2C)
 Expand farmers networks

 HORECA expanded to 50% of total revenue
 Contract farming and locking suppliers
networks
 Expand distribution network
 Add dairy cooperative
 Add new cities for B2C

 Expand dairy cooperative with range of value
added products
 Retail?
 Across the line range of branded grocery
products

1. Dairy Milk Sales as Entry Strategy
2. Business Model of train farmers – buy back
products at better prices – sell to online
buyer base / HORECA

Farmers produce
products of
required quality
standards
TPPL buys / contracts
produce from its trained
farmers
ConductTraining
Courses for
Farmers
A project ofTraining Pakistan Private Limited - www.traininigpakistan.com

Critical Support
Components
 Online Portal
 Optimize: SEO
 Online marketing
 Sales & Order ProcessingTeam
 Database Management
 Farmers training and support network
 Logistic and Supply Chain Management
 Customer ServiceTeam
 CCTV Cameras – 24 hour access
Online / web
presence is crucial to
building trust with
client base

1. Dairy animals – minimum of 65 purebred Holstein cows
2. Milking parlor
3. Small Bottling plant
4. Pasteurization unit (if needed)
5. Chiller
6. Chiller transport van
7. 8 months of farm operational costs including for dedicated staff,
manager, and most of all feed + fodder requirements
8. Additions to infrastructure to ensure high yields
 Climate Controlled walls for existing shed with negative pressure fans
set up
 Spray fans, head catchers etc.
9. Miscellaneous items: CCTV cameras, IP connectivity, etc.
10. Marketing and Sales budgeting

 Dairy Investment: 4 – 6 crore PKR (40-60
million rupees or approx. US $550,000)
 Holstein cows: USA 400,00o PKR (European if
available are priced at 300,000 or so PKR)
 Chiller
 ChillerVan
 Milking Parlor
 Bottling Plant
 Add climate control walls and controls with existing
shed
 Generator set

1. Share division of new brand/company: 50%
TPPL and 50% Investor(s)
2. Joint management of company with assigned
roles/responsibilities
3. Exit Clause (in case of worst case scenario): Investor’s 1st
generation livestock and movable investments
(chiller, chiller van, bottling plant etc) will be
assets the investors can walk away with. 2nd
Generation livestock will be assets equally
shared betweenTPPL and Investor(s)
4. Additional terms can be discussed

 Email: info@trainingpakistan.com
 Phone: +92 423 7512649 or +92 300 846 9255
 Website: www.trainingpakistan.com
 FB: www.facebook.com/trainingpakistan.com

THANKYOU

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