DETAILED PROJECT REPORT

FOR

PUNUM KUMARI
(An Egg Farming Unit)

Prepared by:

GKB & Associates,

Chartered Accountants
4007, Grand Plaza, Fraser Road, Patna

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Contents
Business Overview..................................................................................................... 3
Promoter..................................................................................................................... 3
Poultry Farming: A lucrative Enterprise......................................................................3
Vision and Mission...................................................................................................... 5
Types of Indian pure breeds........................................................................................ 6
Value Proposition........................................................................................................ 7
Site Selection and LayOut of Poultry Location............................................................9
Critical Success factors of the business....................................................................10
Current status of the Industry................................................................................... 11
Contribution to National and local economy.............................................................11
Staff Housing............................................................................................................ 12
City facility requirement........................................................................................... 12
Quality Control......................................................................................................... 12
Strategies to Achieve High Feed Efficiency...............................................................12
Conclusion................................................................................................................ 13

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Business Overview
Egg production is the most popular form of poultry farming because egg consumption cut across
wide divide. Poultry production come in different forms ranging from parent stock breeder meat
(broiler/production), egg production, Quail production, turkey production, ostrich farming, duck
farming, Geese farming and ornamental bird rearing among other. The farming business could
also come in specialisation such as brooding, Point of Lay production, liquid egg package, egg
trading, cold room marketing, day old chicks, feed milling, birds transportation or egg deport
business.
Because of the vastness of this industry, entrepreneurs focus will be on an aspect and with time
add other aspect either for vertical or horizontal integration, this industry is still grossly untapped
and any part of the industrial possess great potential. Specialisation and continuous improvement
on skills is always paramount.
Poultry industry is a multi billion naira industry: The major hindrances to the growth of the
industry ranges from absence of credit, high interest rate, high cost of maize, unavailable
electricity which is important for cold rooms, incubators and operation of automated cages.
Because of the fallow nature of the industry in Africa, the prospect is high. Right now the
demand for egg, broiler meat, day old chicks, day old poult, etc. remain overwhelmingly high.

Promoter
Mrs. Punam Kumari is the wife of Mr. Randhir Kumar Soni, having the Masters Degree. With
experienced skills, high sense of responsibility and serious working style, she is the
quintessential entrepreneur with many successful position in the past. Her plan is to start up the
business of egg farming.

Poultry Farming: A lucrative Enterprise

Poultry gives good returns for the amount invested, lime and energy spent and labour involved.
Some of the advantages of poultry keeping are discussed here.
1. Requires minimum investment to start with In comparison to other livestock, poultry farming
requires less investment to start the farming on commercial scale. Agricultural labourers,
marginal and small farmers, will profit adequately if they start this business on a small scale. The
average investment on fixed capital and total cost of rearing 100 chicks to the point of lay, works
out to be Rs 10,000 only. The layers start laying at 18 months for one year. The normal economic
life of a bird is therefore 18 months after which it is sold as a bird meat. The broiler can be sold
at 6 weeks when it attains a live weight of approximately 1.250 kg. As per 1990 data, for 200
birds per cycle of 6 weeks amounting to 8 cycles, the investment is only Rs 9,000.

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2. Rapid return or profit Chicken start laying eggs when they are about 6 to 8 months of age and
broilers get ready to be marketed for poultry meat at the age between 6 to 10 weeks. As the
interval between the poultry generations is very short, it is possible to bring about a phenomenal
increase in poultry production in short interval. For example, starting with a set of pullet and a
cockerel, it is possible to produce 2,500 commercial pullets within 40 months which in turn can
lay half a million eggs within 18 months. In term of high quality protein, it would amount to 3
tonnes.
3. Feed conversion efficiency Broilers have a very good feed conversion ratio. This implies that
broilers are capable of producing the maximum possible amount of food for us but themselves
utilize only a small quantity of feed.
4. Poultry provides a continuous source of income Poultry is not a seasonal industry but gives a
good income throughout the year with minimum labour and expenditure. Moreover, the farmer
also starts getting returns very early, as layers start laying at their age of 6-8 months. Broilers
start paying within 6 to 10 weeks. The farmers can take good care of poultry and earn a
substantial income from eggs, meat, feathers and manure.
5. Farming requires small space Poultry requires minimum space with modem confinement
rearing and may be profitably reared in the backyard of homes. A big compound or a large open
space is not essential. Each bird requires as little as 1 sq ft by a deep liner system and even less in
case of cages and battery systems.
6. Water requirements are less unlike the land cultivation or dairy farming, poultry farming
requires very little water both for drinking and cleaning purposes. One litre of water will be
sufficient for 5 birds in a day.
7. Stabilize farm income Farmers may experience crop failures due to unfavourable weather
conditions or for other reasons. Poultry raising as a side business will tend to stabilize farm
income. It helps the farmers in other ways too. For example, it gives subsidiary income, supplies
fertilizers at no extra cost, cleans the crops from pests and worms, utilizes waste products and
provides off- season employment.
8. Poultry feeds do not compete with human food Poultry is capable of utilizing large quantities
of by-products like bran, substandard grains and vegetables profitably. A regular laying hen
converts vegetable proteins into valuable animal proteins with an efficiency which is perhaps the
highest among all domestic animals. The birds when put on stubbles (in newly harvested fields)
will pick up the grains which would otherwise go waste. Similarly, if they are put on the

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threshing and winnowing floors after the operations are over, nothing will be wasted. Large
quantities of agro-industrial by-products are utilized by poultry, thus converting all such waste
materials into valuable edible products.
9. Employment opportunities Poultry farming offers opportunities for full time or part-time
employment to men, women, children and elderly people on the farm operation. No hard labour
is required for a poultry unit. Poultry is easy to manage since the birds arc docile. Poultry
farming also provides indirect employment to the people with regard to transportation and
distribution among the consumers. It supports l ancillary industries like feed mixing units,
poultry equipment manufacturers, hatcheries, chicken processing units etc.
10. Poultry gives rich fertilizer Poultry manure is an extremely rich source of nitrogen and
organic material. Hence they are highly regarded as fertilizer. A laying hen produces about 220 g
of fresh droppings (75% moisture) every day. The poultry droppings are higher in nitrogen,
phosphorous and potassium content than cow dung.

Vision and Mission

Vision:
To produce nutritious eggs, generate employment, and create wealth for investor.
Mission:
Build a mechanised poultry that is efficient. And rewarding.

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Types of Indian pure breeds

There are only four pure Indian breeds of chicken are available.

1. Aseel

It is noted for its pugnacity, high stamina, majestic gait and dogged fighting qualities.
The popular varieties of Aseel are, Peela (Golden red), Yakub (Black and red), Nuri
(White), Kagar (Black), Chitta (Black and white spotted), Java (Black), Sabja (White
and golden or lack with yellow or silver), Teekar (brown) and Reza (light red).
Pea comb, bright red wattle and ear lobes, long neck and strong legs

2. Chittagong

It is also known as Malay.

Dual-purpose bird.
The popular varieties are buff, white, black, dark brown and grey.
Pea comb, red ear lobes, over-hanging prominent eyebrows, feather-less shank

3. Kadaknath

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The skin, beak, shanks, toes and soles of feet are slate-like in colour
Comb, wattles and tongue are purple.
Most of the internal organs show intense black colouration and varying degrees
of black colour are seen in the skeletal muscles, tendons, nerves, brain etc. The
black pigment is due to the deposition of melanin.

4. Busra

Medium sized bird, deep bodied, light feathered and alert in nature.
Poor layer.

Value Proposition
Poultry Production for wealth creation.

Poultry for the Poor -India's population of 850 million (in 1990), is the second largest in the
world next to China. Out of this, some 500 million can just afford the bare essential commodities
-food, clothes and shelter. Another 200 million do not even have that Three quarters of our
population lives in 600,000 village in rural India. Although the place of urbanization has been
accelerating, India will continue to remain largely rural based. A great majority of them are poor
and poverty stricken and 61 % of the rural population is unemployed. Most of the rural poor are
either small and marginal farmers or landless labourers.
Similarly, in the poultry sector, as much as 75% to 80% of all eggs and broilers produced in our
country are channeled to the urban markets thus covering to only 25% of the total population.
Statistics show that Over 7,000 million eggs per year (about 35% of the country's total egg
production) are distributed in the four metropolis and a few larger towns. Most of the rural areas
are neglected because of the thin and widely scattered demand. For example, populous states of
Uttar Pradesh, Madhya Pradesh, Bihar, Orissa and Rajasthan account for over 40% of country's
population, but the per capita availability of egg is reported to be less than 10. Incidentally, these
States also suffer from the specter of malnutrition.
Pressure on agricultural land is increasing year after year because of the fragmentation of land
from generation to generation and also due to population explosion. Given this context, poultry
farming provides an excellent means of diversification from the customary cultivation for the
rural poor. Small scale poultry units have other advantages too.

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1. Establishing poultry units not only generates employment to people who have started but also
creates some employment to labourers and thus prevents to some extent the common exodus of
people from rural to urban areas.
2. Ancillary industries like hatcheries, feed manufacturing units, pharmaceuticals, transports etc.
aIso come up, creating further employment to many suitable persons and families of the locality.
3. It can supplement the farm income of many small and marginal farmers
4. Certain crop by-products are beneficially utilized. The poultry is well adapted to the
conditions of the small and marginal farmers or the landless labourers.
5. It can improve the pattern of family diet. The nutritive level can go up even the rural areas
once the consumption of poultry products start
6. It requires minimum investment and the returns are quick, as compared to other framing.
When compared to agriculture and other livestock, poultry definitely scores better. Unlike
agriculture it does not depend on monsoon and requires much less land. Poultry farms can be
easily established on wastelands such as drought prone and alkaline soils, therefore, it is
recommended in such situations instead of cultivation of crops. Moreover, there is a better
marketing set up for poultry as compared to other livestock produce.
All the poultry development programmes in the rural sector must necessarily start at the grass
root level taking the rural poor into confidence and cater to their felt needs, making use of the
resources available in the village itself. It is noticed that the villagers preferred country fowls or
cross-bred fowls to exotic birds, because of the following reasons:
1. He does not need much money to purchase, house and feed them. They are available locally at
a comparatively less price.
2. Very economical to maintain them, as they can live on pickings and kitchen or garden wastes.
3. They need very little care and are easy to manage.
4. Their eggs and meat are considered 'more' tasty and is better relished by local consumers.
5. They are mostly multicolored and not conspicuous. This way they get camouflaged in village
surroundings and escape predators easily.

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If the exotic birds are thrust upon them, they are accepted for the sake of initial profit because of
the various incentives provided by the government or voluntary agencies, but give up these birds
after some time. On the other hand, if the villager is helped to set up poultry units with country
or crossbred birds, he not only enjoys eggs and meat. but makes a little extra income with the
surplus. These small units cannot by themselves individually produce large number of eggs or
chicken to meet the demand of nearby towns or cities. But it is not beyond their capacity to cater
to the urban needs, if a number of such small scale units come together to form a rural
cooperative society, thus avoiding interference from a middle man.

Site Selection and LayOut of Poultry

Location
This is a very important point to be considered before establishing a commercial
poultry farm.
The sitting of houses should take
advantage of topographical features
which will favour air movement.
Records of local wind speeds and
direction should be studied to ensure
the best orientation to take advantage of
prevailing wind i.e. the house should
face away from
the direction of the prevailing winds
and storms in order to avoid rain and
wind drought.
Sites should be planned to avoid
obstructions of air movement by other
buildings.

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 Avoid areas where there is heavy concentration of livestock activity. If this is not
possible, choose a place swept by the prevailing winds before the latter reach other
farms.
The best locations are reserved in descending order for: layer breeder stock, future
laying pullets, layers and broilers.
Avoid sites prone to water logging houses must be on a ground high enough to
provide drainage and should be protected against the danger of floods, i.e. they should
be located on well drained sites.
The site should be accessible from an all season motorable roads to enhance
delivery of feeds removal of poultry products and wastes.
A steady source of water and electricity should also be considered.

Brief Profile of Sheikhpura District - Sheikhpura is a new district carved out of erstwhile
Munger District on 31st July 1994. It lies between 24045 North to 250 North and 85045 to
86045 East longitude. It is bounded by Nawada and Patna District in the North and Jamui in the
South. Lakhisarai district in the east Nalanda and Nawada district in the west. This district
stretches over an area of 605.96 Sq.Km. It comprises of one Subdivision and 06 blocks 45
Panchayats and 310 villages. There are no perennial rivers worth to be mentioned in the districts.
There are small rivers flowing in rainy season namely Sony, Karihari, Tanti, Kacchi etc. The
District has hot summer and moderate winter. The economy of the District is predominantly
agriculture.

Critical Success factors of the business

A. Finance: Fund must be available as when needed according to plan to avoid creating stress
factors which would cost so much in revenue loss.
B. Expertise: The poultry industry is knowledge based home employment of expertise is
imperative. Consultancy is paramount. Training and retraining of staff is sacrosanct no matter
how small the level and acquisition of knowledge of modern trend is a factor to growth.
C. Housing: Proper ventilation and spacing is a critical success factor. Position your house to
give the birds maximum ventilation and reduce heat.
D. Biosecurity: Disease entrance and spread are as a result of any form of breach in biosecurity.
Foot bath, car bath, prohibition of un authorized persons etc.
E. Water: Watering and water source is of great importance. Foul water source or water getting
contaminated in poultry house signifies that the farm will fail. Water should be managed to
ensure that clear and clean water is available for bird ad libitum.

F. Nutrient: Most farm fail because they wanted to reduce cost of feed by compounding farms
should only venture into self compounding on ground with available experiment. All nutrients
must be readily available in the market to prevent malnutrition.
G. Sales: Egg produced must be sold. Proper marketing with vigorous advertisement will ensure
the product is made available to the target market.
H. Management: Pilfering shrinkages, indulgence, misappropriation are few of the several
epidemic that constantly plaque poultry in USA, Canada, Australia, the Netherlands and other
countries of the world. Workers steal eggs, birds, feed, money and even drugs if they are not
properly monitored. Sales agents and drivers could sell at different prices and report differently.
Effective management of this ends are critical factor.
I. Administration: At full capacity, management is separated from administration, when the
owner is not directly involved in day to day management. Absentee farming is hazardous.
Someone with stake in the venture should give quality time to it to survive.

Current status of the Industry.

The poultry industry in many countries is largely untapped. In India poultry farming is very good
business and now as the technology has increased so it is possible for all the products to be
maintained and given on time.
The machines which are used now-a-days reduces the human word by 60% and the work load on
individual is also reduced to minimal. This effectively increases in the production and the output
which is produced.
Now the old ways are only used in the rural area of india and other cities poultry only used the
machines and they quality which is present is also good. And 75% of the population in India eat
eggs in their day to day life. They need it in some or the other way, so the business is always
profitable.

Contribution
economy.

to

National

and

local

The poultry will provide employment in the first year for at least two persons. By five years at
full capacity it would employ about 14 persons. Contractors and suppliers should also benefit.
Nationally, it will reduce cash flight or lost in Forex and generate about N17 million per annum
in revenue. The banks, insurance companies and Agricultural consulting firms shall all be
beneficiaries with the attendant tax going to the government. The investors shall also have find a
means of expressing their entrepreneurial skill. The manure will service proximal farms and far
farms. Egg marketers, maize or feed suppliers, transporters, spent birds marketers etc. shall all be
affected positively. The impact on the economy will be positive.

Staff Housing.
Attendants shall and should be housed in the farm or in close proximity for the sake of
emergency such as insect attack, late feeding, brooding and security.

City facility requirement.

A shop within the town shall serve the ware house feed and as depot for the produced eggs.
Feeds from the company will be truck load. Sales to other farmers will generate additional
income and provide the farm with reduce cost.
When buyers buy from the farm egg outlet, it reduces visitation to farm which has attendant risk
of break of security and biosecurity.

Quality Control
Biosecurity measure will be put in place to prevent disease outbreak. Foot bath for visitors and
workers will be put in place at the entrances. Every vehicle coming into the facility will also pass
through a bath and get sprayed. All quality control standards will be adhered to strictly so as to
produce a world class standard. Animals and materials will be kept away from the poultry pens.
Biosecurity training will be mandatory given to attendants and other staff

Strategies to Achieve High Feed

Efficiency
1. Adequate feeding space should be provided at all times, ensuring that about 75% of the birds
can feed at the same time.
2. Feeders should be well-designed with lips to prevent feed wastage.
3. Feeders should be filled to not more than full capacity.
4. Feeders should be properly hung, ensuring that the level of feeders correspond to back of the
chicken and activate the feed in the feeders regularly with the hands.
5. To avoid feed contamination and wastage, rat population should be constantly kept low.
6. Attendants should minimize feed spillage during the process of serving feed to reduce
wastage.
7. Do not store feeds for too long or in damp places, otherwise they can become mouldy.
If there is any need to change from one type of feed to another it should be done gradually
because chickens respond adversely to an abrupt switch over from one type of feed to another.
This can be done spanning a period of about four days. The change can be effected by gradually
increasing the quantity of the new feed to be changed to while there is corresponding decrease in
the quantity of the feed currently in use.

Conclusion
Poultry farming is a viable business activity and has got immense scope for growth in India. Just
as the decade of seventies saw an unprecedented growth in egg production and that of eighties in
broiler production, the decade of nineties is expected to see the emergence of modem poultry
processing as an ancillary industry. In the rural sector too, poultry farming is gaining in
popularity as it provides some of the cheapest sources of protein rich food as well as serves as an
avenue for enhancing the income of small and marginal rural farmers.
The development of poultry through the application of modem science and technology will
greatly contribute to improving the socio-economic conditions of the poor farmers by making
poultry farming more productive and remunerative. The introduction of better stock and efficient
husbandry practices with an efficiently organized marketing system would make poultry a
successful enterprise for Indian farmers.
Poultry Farming is a highly developed industry. Its efficacy and productivity is a product of
bringing together of all the available industrial facilities, this can never be provided enough by
just one individual or company, hence one must plan to collaborate with investors and experts.

The industry works effectively as a network with different specialization, bringing in diverse
inputs. Also, to avoid overcrowding of ideas and thinning of the limited resources, focus will be
on egg production for a long time under the supervision of an experienced consulting firm.