Dairy Business : Calling Entrepreneurs

Context :

How profitable can Dairy Business be, is explained in following news-report :

Start this business and earn Rs 70,000 every month; Centre will help you with funds 

Highlights :

Ø  How much will you need to start the Project?

Project Cost ……….. Rs 16.5 lakhs

Own Funds………….. Rs  5  lakhs

Bank Loan……………  Rs  11.5  lakh ( 7.5 L as Term Loan / 4.0 L as Working Capital )

Ø  Raw Materials required each month

Raw Milk …………………. 12,500 litre

Sugar ………………………    1,000 Kg

Flavours…………………….     200  Kg

Spice……………………………   625  Kg

Total funds required for these purchases ……….. Rs  4  lakh

Ø   How much will be the turnover ?

Rs  82.50  lakhs ( annual ) , for following sale :

75 litre flavoured milk, 36,000 litre curd, 90,000 litre butter milk and 4500 KG ghee

Ø  How much profit will you make ? 

          Rs 8.10 lakh profit ( “Sale” of Rs 82.50 L – “Cost of manufacture”, of Rs 74.40 lakh )

          Bank Loan interest @ 14 %

Ø  How much area will be required ?

          1000 square feet

Ø  Machines required for the project

          packing machine, cream separator, autoclave, bottles, refrigerator, deep

          freezer, can cooler, copper bottom heating vessels, stainless steel storing

          vessels, plastic tray, dispenser, slot conveyers etc.

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I got reminded of my following 8 year old blog :

     IT PAYS TO BE AN ENTREPRENEUR …………………………………………………..[ 30 Jan 2012 ]

     Highlights :

Ø  Entrepreneur… Ramilaben

Ø  Business  :      Jai Ranchhod Dudh Utpadan Kendra ( Dairy  Farm )

Ø  Launched :      2000

Ø  Capital     :      Bank loan for buying 5 cows

Current  Status ( in 2012 , when I wrote that blog )

·                     No of Cattle………………….    280 ( in 5 acre farm )

·                     No of Workers……………      40

·                     Production………………..       5.55 lakh litres of milk / year

·                     Net Profit ( 2011-2012 )    Rs. 1,10,17,675

·                     Machinery………………………   4 automatic milking machines

                                                 Fodder Chaffing Machines

                                                 Cooling System

·                     Future plans

                                     #   Rotary Milking Machines

                                     #   Fat content indicator

                                     #   Calf rearing Farm

·                     Future Investment……….   Rs 1,00,00,000

Ramilaben seems to be telling 40 Million unemployed Indian Youth :

“ When you become self-employed , you can never lose your job “

References :

https://www.defindia.org/ramilaben-govindbhai-patel/

https://samvada.org/2012/news-digest/super-milkmaid-gujarat-woman-milking-millions-in-dairy-den/

https://dailyjag.com/breaking-news/gujarat-woman-milking-millions-in-dairy-den/2811/

https://timesofindia.indiatimes.com/city/vadodara/Gujarat-woman-milking-millions-in-dairy-den/articleshow/14700970.cms

http://dairy538.rssing.com/browser.php?indx=15020722&item=22

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Above news report of ZeeNews , was a condensed ( pun intended ) form of a :

Project Report for Starting a Dairy

ZeeNews must be congratulated for this publication

Now imagine if budding ENTREPRENEURS can search and download ( for FREE ),

Detailed Project Reports ( Approved by Banks ) for 5,000 products / items / services !

Downloadable from some Government website

That would bring about a REVOLUTION in our ECONOMY  !

For a detailed proposal, read my following 4 year old blog / emails to Cabinet Ministers :

Well Begun is Half Done  …………………………………………………………..[  06 May 2016 ]

Extract :

Here is my suggestion ( sent to DIPP / ASSOCHAM / FICCI / CII / NASSCOM etc, in Sept 2015 ) :

*  Role of MakeinIndia web site

    >  On its web site , list 5000 products that we currently import ( with

        annual import bill / sources / ave landed cost etc )

    >  Invite 1000 leading manufacturing companies of India , to make

        online selection of minimum of 5 items each, for preparing DPR

        ( Detailed Project Reports ) .

        Freely visible online database of who selected which items

        will avoid duplication

Read full blog which prescribes :

Ø  Role  of  Manufacturing Companies

Ø  Role of Ministry of Commerce

Ø  Role of  Income Tax Department

Ø   Role of Fresh Engineering Graduates

Ø  Role of ASSOCHAM / FICCI / CII etc

Ø  Role of eBiz web site

Ø  Role of State Governments

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Dear Shri Narendrabhai,

I urge you NOT to postpone suggested “ BIRTH  of  MILLION  ENTREPRENEURS “ , for Covid Crisis to come to an end

“ Fighting COVID “ and “ Creating Self Employed Entrepreneurs “ , are neither mutually exclusive, nor sequential, objectives .

We desperately need to conjure a miracle , like :

Miracle of Self Employment [ 06 Jan 2018 ]

With regards,

Hemen Parekh

hcp@recruitGuru.com  /  11 June 2020

Boycott Chinese Products ? A Game Two can play

Of late ( and from time to time ), there is debate raging about boycotting of the Chinese products ( ie :  cut back on imports from China )

Times of India has neatly summarized this issue and provided a proper perspective, in :

Boycott China's products? Figure this out     /   06 June  2020

For easier understanding, I reproduce this report in following tabulation :

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                             BOYCOTT CHINA’S PRODUCTS ?  FIGURE THIS OUT

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Item	Market Size ( Rs Cr )	Share of Chinese Products  (  %  )	Possibility of Substitution
Smart Phones	200,000	72	Very difficult
Telecom Equipment	12,000	25	Doable but costly
TV	25,000	Smart        > 42-45 Non Smart > 7-9	Doable but expensive
Home Appliances	50,000	10 – 12	Easy now
Auto Components	$  57  Billion	26	Tough
Internet Apps	450 million smart phone users	66	Easy
Solar Power	37,916 MW	90	Almost Impossible
Steel	108.5 MT	18 – 20	Doable but tough
Pharma / API	$  2  Billion	60	Tough

My Take :

Ø  For decades, every country has been trying to increase its EXPORTS and reduce its IMPORTS. Nothing new about this

Ø  No country can perfectly ( 100 % ) balance its trade, with EACH and EVERY of its trading partners . With some trading partners, it would have a surplus and with some others, it would have a deficit

Ø  Most countries would be happy if they manage to balance its OVERALL trade ( Total Exports = Total Imports )

Ø  All countries would be happier if their total exports exceed their total imports ( theoretically, impossible )

Ø  All countries realize – and reconcile with the fact that their overall SURPLUS or DEFICIT will keep fluctuating from year to year

Ø  Even with any given trading partner, surplus / deficit , keep changing

Ø  Of late, this ongoing game of trade-skirmishes have assumed the dimension of a full-fledged TRADE-WAR, because, for past 2 / 3 years , entire World Economy has been going down

Ø  This has dramatically worsened in past 5 / 6 months due to COVID

Ø  In most countries, millions have lost their jobs

Ø  Each country is trying to revive its economy by cutting back on Imports and pushing its Exports, hoping that this would bring back the lost jobs

Ø  Countries are trying to reduce Imports by imposing higher import duties

Ø  They are trying to increase Exports by all kinds of Export Subsidies , ignoring WTO

Ø  WTO is as good as defunct !

Ø  No early revival of world economy is in sight . Current situation will become the NEW NORM

Ø  For India , the only long-term solution is to turn our economy into a LOW  COST  ECONOMY

Ø  Even that World-Trade Super power China , in April 2020 , dropped its Imports by 16.7 % and dropped its Exports by 3.3 %

Ø  India’s overall exports (Merchandise and Services combined) in April 2020* are estimated to be USD 27.96 billion, exhibiting a negative growth of (-) 36.65 per cent over the same period last year.

     Overall imports in April 2020* are estimated to be USD 27.80 billion, exhibiting a

     negative growth of (-) 47.36 per cent over the same period last year.

       ( source :  https://commerce.gov.in/  )

Ø  According to data compiled by Teamlease, a provider of employment-related services, there are 57,000 compliance requirements and 3,100 filings for employers in India.

Compliance requirements change perhaps 4,000 times a year, imposing a vast burden on firms in the country.

India’s crisis is amplified by its red tape and bureaucracy—estimates suggest it takes 29 days to start a business in the country, 58 days and an average 8 per cent of a property’s value to register it and about 1,445 days for a company to resolve a commercial dispute through a local court—three times as long as it takes in high income economies.

As the China brand is sullied by the coronavirus crisis, the time is ripe for India to aggressively go for “flick of the pen reforms and long term structural reforms,” as Manish Sabharwal, chairman of TeamLease Services puts it.

[ source : https://www.indiatoday.in/india-today-insight/story/made-in-china-is-here-to-stay-1686521-2020-06-07 ]

Ø  What can we do to cut back on our Imports ?  Here is an “ Action Plan “ :

              Making Best of Worst Times ?   …………………….[ 29 Feb 2020 ]

Related readings :

 

How china makes cheap ?       ………………………………………………………………..[ 08 Nov 2014 ]

Prakash / Piyush / Nitin ko Kyun Gussa aata hai ?  ……………………………….[ 12 Sept 2015 ]

Level-Playing Field is a Double Edged Sword !   ……………………………………..[ 08 Feb 2017 ]

Poverty Alleviation – the Chinese Way ……………………………………………………..[ 02 Mar 2017 ]

When 2 is greater than 7 ?     …………………………………………………………………. [ 04 June 2017 ]

Crying Wolf won’t Help !    ………………………………………………………………………..[ 08 July 2017 ]

Hypocrisy : to the Nth degree       …………………………………………………………….[ 13 July 2017 ]

Amitabh Kant ko Gussa Kyun aataa hain ?  ……………………………………………..[ 28 Aug 2017 ]

India Economic Summit    ………………………………………………………………………….[ 08 Oct 2017 ]

Free Electricity ? Possible    ……………………………………………………………………….[ 28 Dec 2017 ]

A  Trade War  Epidemic  ?  ……………………………………………………………………….[ 22 Mar 2018 ]

The  Second  Shot  ?   ……………………………………………………………………………….[ 22 Mar 2018 ]

Costing Plays a Key Role   …………………………………………………………………………[ 18 Oct 2018 ]

Foundation of Economy      ……………………………………………………………………..[  03  Nov  2018 ]

Amitabh says : Grow Big    ……………………………………………………………………….[ 24 Dec 2018 ]

Low Manpower Cost = Low Cost Economy   ……………………………………………..[ 28 Sept 2019 ]

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Dear Shri Piyush Goyalji

(  Commerce Minister  / officeofmr@gov.in  )

No one knows it better than yourself that the current Trade-War is in the process of being PERPETUAL

Our only hope to SURVIVE ( leaving aside any wishful thinking of having a positive trade surplus with our 19 leading trade partners ), is to compete in the international market, with better quality goods at low costs

No doubt private sector companies will resort to reducing labor costs through greater mechanization / low cost automation – with greater unemployment as an undesirable consequence

It is high time , government expands its coverage of existing schemes – and introduce new schemes – meant to encourage SELF EMPLOYMENT 

With regards,

Hemen Parekh

hcp@RecruitGuru.com  /  10  June 2020

 

Once Upon a Time……….

Some 60 years ago :

Ø  For possessing and using at home, a small ( or big ) RADIO , one had to have a LICENSE issued by the Postal Department . Every year, you had to go to the nearest Post Office, stand in a queue and, when your turn came, pay annual license renewal fee ( Rs 5 for small / Rs 10 for big ) . I do not remember what was the penalty for using a radio without license renewal. If you had 2 radios, you needed 2 licenses !

Ø  Then about 40 years ago, while returning from a foreign trip, I brought with me, a CORDLESS TELEPHONE instrument. Before I can start using it, I had to send it to some Govt Dept ( I think, it was Telephone Department ) for allotment of a SPECIFIC FREQUENCY which only can be used for working of that instrument !  This took several months !

Ø  If you wanted to shift your telephone instrument ( good old circular dialing type ), from your hall to your bedroom, you had to formally “ Apply “ to Mumbai Telephones , who will send a mechanic ( anytime during next 3 months ) to carry out the shifting

Ø  Mumbai Telephone Department used to issue every year ( although, often it ended up being 2 years ), a big ( 400 pages ? ) TELEPHONE DIRECTORY ( one for each phone-owner ) . To get the latest copy you had to go to the Telephone Dept Office and surrender your OLD copy !

Ø  To get my first landline phone ( at Shivaji Park – Dadar – Mumbai ) , I had to apply with a non-refundable deposit of Rs 3,000 and wait for 6 years !

=================================

June 2020

Just came across following news :

Government issues draft rules for manufacturing, using drones 

Extract :

Ø  An authorised manufacturer or importer can sell its devices only to an individual or entity approved by the aviation regulator DGCA.

Ø  Each drone importer, manufacturer, trader, owner and operator will need to take approval from the Directorate General of Civil Aviation

Ø  An authorised unmanned aircraft system importer or manufacturer must not sell a UAS to any person except an authorised trader or owner.

Ø  DGCA will have the powers to inspect a UAS manufacturing or maintenance facility before granting any authorisation under these rules

Ø  No UAS shall operate in India unless there is in existence a valid third party insurance policy to cover the liability that may arise on account of a mishap involving such UAS

Ø  No UAS should carry any payload except as permitted by the DGCA.

Ø  Only Nano class drones, which are less than 250 grams, will be allowed to operate in India

Ø  only a "qualified remote pilot" will be permitted to operate heavier drones.

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May be , all of these “ Rules / Regulations / Authorizations / Permissions / Approvals “ re manufacture / sale / use of DRONES , are necessary in today’s context

But, in not too far a future ( certainly not 40 / 60 years but very likely, 4 / 6 years ) , technology may have advanced so much that, persons sitting in any corner of the Earth, may send tiny / super tiny DRONES into India’s air-space and operated remotely from 10,000 km away !

Very likely , thousands of young Indians , sitting in hundreds of small towns of India , may themselves, want to deliver all kinds of goods and services , all over the world , using drones !

Imagine ONE MILLION tiny drones flying in our sky !

By then , “ Rules “ may not be able to “ regulate / control “ such Drone-Swarms

But my following suggestions might provide some clues :

Drone – a – Charya                                               [ 02 Sept 2018 ]

Flock Dynamics                                                     [ 04 Sept 2018 ] 

Drones Need Mid-Air Re-fueling                              [  06 Sept  2018 ] 

A Swarm-O-Drone is born                                      [  16  Nov  2017  ]

Locusts are invading !                                            [  24  May  2020  ] 

CC :  

info@dronefederation.in

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09  June  2020