PROJECT PROPOSAL FOR

COMMERCIAL PIGGERY

INTRODUCTION :-
Pork is considered a delicacy of the Nagas in every festivals and
occasions which commands the highest in terms of demand. Pork
can be produced at comparatively cheaper cost on account of its high
prolificacy, shorter generation interval, faster growth rate, better feed
conversion efficiency. High dressing percentage and low
maintenance cost. Over and above, the pig can well utilize inedible
feeds, forage, by products of grains from mill, meat bio-products and
kitchen waste and convert them into valuable nutritious meat.

Pork is considered a delicacy of the Nagas in every festivals and

occasions which commands the highest in terms of demand. Pork
can be produced at comparatively cheaper cost on account of its high
prolificacy, shorter generation interval, faster growth rate, better feed
conversion efficiency. High dressing percentage and low
maintenance cost. Over and above, the pig can well utilize inedible
feeds, forage, by products of grains from mill, meat by products and
kitchen waste and convert them into valuable nutritious meat.

MARKET POTENTIALITY:-
in Nagaland 85% of its population are tribal who prefer pork and beef
meat over any other choice. The demand of pork is such that in every
butchery people gather and stand to collect their share of meat and
even butcher fail to fulfill the demand of the consumers. In Longleng
District alone everyday more than 50-60 pigs are imported from
inside and outside the state of Nagaland to cope with the demand.
Through every house hold tame pigs, the method which they use in
taming pigs are not at all productive and becomes health hazard
which not only pollute the locality but spread various diseases.

Therefore, to meet the demand and cater the need of employment,

self-help and natural benefit among the local people, the promoter of
the project Smt. T. Amenla Jamir, permanent resident of Walford
Colony of Dimapur came forward with a proposal for piggery farming
in a systematic and scientific method under this project development.
FINANCIAL ASPECTS

A. FIXED CAPITAL
Particulars Amount (Rs.)

a) Land (owned by the applicant, value taken as

Nil for projection) ---

b) Pig Shed/sty (by using locally available materials

Cement concrete floor and CGI sheet roofing)
Measuring 4125 sq.ft. including 1375 sq.ft. open area/
open pan
(1650+1650+825sq.ft.) @100/- per sq.ft 4,12,500.00

d) RCC Water tank & Motor with pipe connection 35,000.00

e) Electrification 5,000.00

f) Tools & Equipments

(baskets, vessels, sovels, feeder & drinkers etc.) 10,000.00

g) Livestock
i) 8 months old gilts – 10 nos.
@Rs.4000/- each 40,000.00

ii) 7 Months old gilts – 10 Nos.

@ Rs.3500/- each 35,000.00

iii) 3 months old gilts – 20 Nos.

@2500/- each 50,000.00

iv) 7 months old boar – 4 Nos.

@Rs.4,000/- each 16,000.00
1,41,000.00
Add. Transportation @10% 14,100.00
1,55,100.00
6,17,600.00
Say, 6,17,000.00
B. WORKING CAPITAL(ANNUAL)

1. RAW MATERIALS & CONSUMABLES

44 Adults @3kg/day = 132kg.x365 = 48180 481.8 Qt.

320 young ones (4 in each of two farrowing)
@ ½ kg.day = 0.5x320x45 days x2 =14400 kgs, 144.00
288 growers (2-3 months)
288x1kg,x30 days = 8640 kgs, 86.40
288x1.5kgx30 days (4-5 months) = 12960 129.60
288x2kgx30 days (5-6 months) = 17280 172.80
1014.60 Qt.
@Rs.1000/- per qntl. 1014.60x 1000/- 10,14,600.00

Medicine and vaccination 10,000.00

10,24,600.00

2. SALARY AND WAGES

a) Manager (The unit will be managed by
promoter himself) - Nil-

b) Attendant – 3 @2000/- each 72,000.00

72,000.00

3. UTILITIES
a) Power & fuel 18,000.00

4. ADMINISTRATIVE OVERHEAD
a) Travelling & conveyance 12,000.00
b) Insurance (2.5%) 2,600.00
d) Miscellaneous 6,000.00
20,600.00
TOTAL WORKING CAPITAL (ANNUAL)

1. Feed and consumables 10,24,600.00

2. Salaries 72,000.00
3. Utilities 18,000.00
4. Administrative expenses 20,600.00
11,35,200.00

Working Capital requirement (1 month) 94,600.00

Say, 95,000.00

TOTAL COST OF THE PROJECT

1. Fixed Capital 6,17,000.00

2. Working Capital (1 month) 95,000.00

Total 7,12,000.00
Say, 7,00,000.00

MEANS OF FINANCE

1. Promoter’s Contribution @10% 70,000.00

2. Term Loan (90%) 6,30,000.00

Total 7,00,000.00
STATEMENT OF LOAN REPAYMENT & AVERAGE CALCULATION OF
INTEREST
(Repayment will be made within 10 years including 6 months as moratorium
period

Term Loan – Rs. 6.30 lakhs

Year Opening Repayment/ Interest Total Closing

Balance Installment Balance

I 6.30 0.63 0.38 1.01 5.67

II 5.67 0.63 0.34 0.97 5.04

III 5.04 0.63 0.30 0.93 4.41

IV 4.41 0.63 0.26 0.89 3.78

V 3.78 0.63 0.23 0.86 3.15

VI 3.15 0.63 0.19 0.82 2.52

VII 2.52 0.63 0.15 0.78 1.89

VIII 1.89 0.63 0.11 0.74 1.26

IX 1.26 0.63 0.08 0.71 0.63

X 0.63 0.63 0.04 0.67 --

STATEMENT OF ESTIMATED PRODUCTION & SALES REALISATION

Total pigs (8,9,10 months old) - 288 Nos.

(40 piglets avg. 8 piglets = 320 piglets
Less mortality @10% (avg.)

Sales Price (avg.) - Rs.6000/- each

Total Sales Estimated - Rs.17,28,000/-

Note :- Assuming 10% in production and sailing price will be

increased in every subsequent year.

PROJECT PROFITABILITY STATEMENT

(Rs. in lakhs)
st nd rd th
Particulars 1 yr. 2 yr. 3 yr. 4 yr. 5th yr.
Sales of piglets 17.28 18.14 19.04 20.00 21.00
TOTAL 17.28 18.14 19.04 20.00 21.00
Cost of operation
Salary & wages 0.72 0.72 0.72 0.80 0.80
Feed and fooder, 10.25 10.76 11.29 11.85 12.44
medicines etc.
Utilities 0.18 0.20 0.22 0.24 0.26
Other expenses 0.21 0.24 0.26 0.28 0.30
Total 11.36 11.92 12.49 13.17 13.80
Gross Profit 5.92 6.22 6.55 6.83 7.20
Interest 0.38 0.34 0.30 0.26 0.23
Depreciation 15% 0.70 0.70 0.70 0.70 0.70
on fixed assets
Net profit 4.84 5.18 5.55 5.87 6.27
DEBT SERVICE COVERAGE RATIO (DSCR)

(Rs. in lakhs)
st nd rd
Particulars 1 yr. 2 yr. 3 yr. 4th yr. 5th yr
Net Profit 4.84 5.18 5.55 5.87 6.27
Depreciation 0.70 0.70 0.70 0.70 0.70
Interest 0.38 0.34 0.30 0.26 0.23
Total (A) 5.92 6.22 6.55 6.83 7.20
Repayment of loan 0.63 0.63 0.63 0.63 0.63
Interest 0.38 0.34 0.30 0.26 0.23
Total (B) 1.01 0.97 0.93 0.89 0.86
D.S.C.R 5.86:1 6.41:1 7.04:1 7.67:1 8.37:1
(A/B)
Maximum 8.37:1
Minimum 5.86:1
Average 7.07:1
STATEMENT OF BREAK EVEN POINT

FIXED COST (1ST YEAR)

Particulars Amount (Rs.)

1. 40% of Salaries & Wages 28,800.00

2. 40% of other expenses 15,600.00
3. Depreciation 70,000.00
4. Interest 38,000.00
1,52,400.00

Fixed Cost X 100

B.E.P. =
Fixed Cost + Net Profit

= 23.95%
 PROJECT REPORT

ON

COMMERCIAL PIGGERY

Prepared For:-

SMTI T. AMENLA JAMIR

Walford Colony, Near Urban Haat,
Dist. Dimapur : Nagaland