10 Murrah Buffalo Dairy Farm
Detailed Project Report (DPR) for Bank Loan
Standardized, bank-ready financial dossier for 10 milch buffaloes. Includes capital investment breakdown, feed cost models, lactation cycles, debt service coverage ratio (DSCR), and NABARD 25%–33% subsidy guidelines for SBI, PNB, BoB & Canara Bank loan sanction.
10 Animal Commercial Dairy Unit: Key Financial Indicators
Structured on a 2-batch phased procurement cycle to ensure uninterrupted milk production 365 days a year.
Itemized Capital Expenditure (CAPEX) for 10 Buffaloes
Prepared as per standard National Bank for Agriculture and Rural Development (NABARD) unit cost norms.
| Cost Component | Physical Specifications | Unit Rate | Total Amount (₹) |
|---|---|---|---|
| Purchase of Murrah Buffaloes | 10 Animals (2nd/3rd Calving, 12-14 LPD) | ₹75,000 / Animal | ₹7,50,000 |
| Animal Transportation | Transit insurance + cattle truck freight | ₹3,000 / Animal | ₹30,000 |
| Cattle Housing Shed | 400 sq.ft covered + 800 sq.ft open paddock | ₹350 / sq.ft | ₹1,40,000 |
| Calf Pen & Store Room | 150 sq.ft concentrate feed/milk can storage | ₹300 / sq.ft | ₹45,000 |
| Dairy Equipment & Chaff Cutter | 3 HP Motor Chaff Cutter, Milking Cans, Mats | Standard set | ₹55,000 |
| Initial Working Capital | 1 month dry fodder & concentrate feed reserve | 10 Animals | ₹30,000 |
| Total Project Cost (TCO) | ₹10,50,000 | ||
Why Phased Procurement is Mandatory for Bank Approval
If an entrepreneur buys all 10 buffaloes simultaneously, all animals will enter their dry period (non-milking) together after 300 days, resulting in zero milk revenue while feed costs continue. Banks will reject any project report that fails to incorporate this staggered schedule.
Procured in Month 1 (Immediately upon shed completion)
Yields milk from Month 1 to Month 10. Enters dry period from Month 11 to Month 14. Delivers continuous early cash flow to meet initial working capital and EMI obligations.
Procured in Month 6 (At peak of Batch 1 production)
Reaches peak milk yield right when Batch 1 milk output begins tapering off. Guarantees that at least 5 to 7 buffaloes are in active lactation every single day of the year.
Annual Income, Expenditure & Debt Service Coverage Ratio (DSCR)
Assumes farm-gate milk sale @ ₹55/Litre, dung/manure sales @ ₹15,000/year, and feed cost @ ₹160/animal/milking day. Bank loan interest benchmarked @ 9.50% p.a.
| Financial Year | Gross Income (₹) | Operating Expenses (₹) | Bank EMI Repayment (₹) | Net Cash Surplus (₹) |
|---|---|---|---|---|
| Year 1 | ₹13,86,000 | ₹8,12,000 | ₹2,11,800 | ₹3,62,200 |
| Year 2 | ₹15,40,000 | ₹8,80,000 | ₹2,11,800 | ₹4,48,200 |
| Year 3 | ₹16,10,000 | ₹9,10,000 | ₹2,11,800 | ₹4,88,200 |
| Year 4 | ₹15,80,000 | ₹9,25,000 | ₹2,11,800 | ₹4,43,200 |
| Year 5 | ₹16,50,000 | ₹9,40,000 | ₹2,11,800 | ₹4,98,200 |
| Average 5-Year DSCR (Debt Service Coverage) | 2.18 (Healthy > 1.50) | |||
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