Jakon dairy farms

Milk – The white gold

To establish an integrated dairy farm known for its purity and quality of dairy products

Chitale daiy farm (Maharashtra)Rajpura diary farm (Punjab)Rajnandgaon dairy farm (Chhattisgarh)

Huge dairy farms in Israel, Australia and Newzealand

Dairy farming Milk collection &

& Production Processing

Our focus area Other’s focus area

A total of 50 animals on the farmShed of 100 animals22 bigha farm on main Jaipur-Ajmer

expressway with 300 ft. highway frontageSupplying raw milk locally - wholesale Total capital invested = 6 cr. + Lot of sweat

equity!!!Capital required for expansion to 1000

animals = 6 cr.

Milk and dairy products produced at the farm itself Superior quality control Consumer trustworthiness Premium for the product

None of the established dairies in the country have milk exclusively from one particular farm

Can’t guarantee pure cow milk/products Quality control starts after milk from all sources is collected and mixed Can’t produce organic milk Infact, most of the processing plants have

unhygienic conditions

Unmatched demand of milk in NCRPricing – Fat content/fixed value – 16 Rs./literNo botheration of sales – Milk container filled

at the farm itselfProfit/liter = 8 Rs./liter (approx.)Expected project returns – 18-24% per annum

over 12 cr.

Unorganized market for farm fresh milkHealth conscious consumer – Farm fresh milk has

more nutritive value1st mover advantagePositive response from the survey conductedMarketing and sales expensesNeed to establish dealer network and supply chain

Fatless cow milk – 22 Rs./literFresh cow milk – 25 Rs./liter

Milk value realization: 20-21 Rs./liter Expected project returns: 27-36% per annum over

12 cr.

Installing a processing and packaging unitEasier transportation of productsEstablishment of a national brandCertification from agenciesHigher value realized for products in NCR &

other high end marketsExpected returns – Above 35%

Strong demand in middle east, south east asia and other countries with land-labor issues

Need to establish a worldwide brandCertifications required from international

agenciesExpected returns – Above 40%

Good animal selection proceduresHigh yielding cows at reasonable price

Breeding programRegular lactation cycleMore number of female calfs

Proactive animal health careLow calf mortality rateMinimization of productivity loss due to diseases

Feed managementBalanced feed at all times in lactation cycle

Computerized data keepingAnalysis of animal milk yield, heat detection,

disease symptoms, overall animal pedigree

Initially 10,000 lpd from 1000 cowsCulling of 10% herd each year40-75% female calf into young heifers after

2.5-3 yearsExponentially increasing herd size after 3

years3rd year – 1300-1500 cows4th year – 1800-2000 cows5th year – 2300-2500 cows…

Expense Per unit cost Total expense

1000 cows + 2.5% insurance 40000/- 4.0 cr.

4 cow sheds and 1 hiefer section

16,000,00/- 0.80 cr.

Feed warehouse 20,000,00/- 0.20 cr.

Milking parlour 50,000,00/- 0.50 cr.

TMR wagon 15,000,00/- 0.15 cr.

Tractor, herd management software, RO plant etc.

20,000,00/- 0.20 cr.

Bio gas plant 15,000,00/- 0.15 cr.

Total 6.0 cr.

3,00,000 liters per month production@ 16 Rs./liter = 48 lakh/month

Feed cost/animal per day = 75 Rs.Monthly feed cost = 22.5 lakh

Medical expenses/animal/month = 150 Rs.Monthly medical expense = 1.5 lakh

Fixed costs: Salaries, electricity, maintenance, fuel etc.Monthly fixed costs = 4 lakh

Total costs = 28 lakh/monthNet cash inflow = 20 lakh/month

Ever increasing demand of milk due to increasing population

Minimum external impact No impact of economic cycles or downturns – Milk would

be required in worst economic conditions as well No impact of Political environment – Milk would needed

during war also No impact of catastrophic disasters – Milk needed then as

wellProvides diversification across all investment classesHigh returns & high liquidityOnce established, guaranteed lifetime incomeNo impact of inflation on profitability

As inflation increases, dairies pass on the cost increase to the consumers

Livestock covered by insurance – minimal riskFurther diversification with various product

rangeDiversified markets - Local, national and

international marketsEasiest option of supplying to other dairies

always open

Returns 20-40%

Risks Covered by insurance

Liquidity Daily/weekly cashflow

Capital deployment

Over 6 months

Returns starting Day the cattle is procured

Diversification Low correlation with other investment options

Excreta managementCow urine: Being used as a pesticide and in

ayurvedic medicinesCow dung:

Generation of bio-gasSlurry from bio-gas plant being used as fertilizerVermicompost being made from cow dung

Kanpur gaushala society is buying cow dung for Rs. 3/kg and cow urine for Rs. 5/liter

Additional income of 10-15%

2000 existing trees on the farm10,000 more trees would be planted for

cooling the micro-climateAdditional carbon credits from

Conversion of methane & CO2 generating cow dung into bio-gas and slurry

Electricity generation from bio-gas generator

Minimizing cattle feed costs by cultivating fodder

Agriculture income is tax free

Modern and integrated organic farm on main NH8 – Busiest highway in India

Company’s flagship store on main expressway – A symbol of pride and a medium for national / international branding Falls on the tourist belt due to Ajmer/ GujaratJaipur a popular international tourist center

Potential of opening an organic village for tourists

Potential of starting an educational institute focusing on agri-preneurship

Mr. Madhur Singhal (B.Tech, M.Tech – Comp. Sc. – IIT

Delhi) (FRM, CFA level II)

Mr. Ghanshyam Singhal (B.E. Elec. - BITS Ranchi) Singhal Exports, Jaipur Residency

Contact : jakondairy@in.com, +91-9351393054