ENTREPRENEURSHIP DEVELOPMENT AND STARTUPS
Practical
No. 1
Preparation of report on entrepreneurship as
Name of Company: Koyna Dairy Products
Pvt. Ltd.
Promoters of the Enterprise
- Founders and Co-Founders of
Enterprise: [Group Member Names].
- Background: Entrepreneur with interest in
agribusiness & food industry.
- Vision: To provide fresh, hygienic, and
affordable dairy products to urban and semi-urban markets.
Basic Objective of the Enterprise
- To produce and market
high-quality dairy products like milk, curd, butter, paneer, and ghee.
- To ensure fair pricing and direct
sourcing from farmers.
- To create a sustainable and
eco-friendly dairy supply chain.
Product and Process
- Products: Packaged milk, curd,
flavored milk, paneer, ghee, butter.
- Process:
- Procurement of raw milk from
farmers.
- Quality testing &
pasteurization.
- Processing into value-added
products.
- Packaging and cold storage.
- Distribution to retailers and
direct customers.
Location of the Enterprise
- Proposed Location: Semi-urban
area with easy access to milk-producing villages and urban markets.
- Advantage: Availability of raw
milk, transport facilities, labor, and proximity to markets.
Size of Investment
- Small/Medium enterprise depending
on machinery & scale.
- Initial investment: approx.
₹50–80 lakhs (plant, machinery, working capital).
Estimated Cost & Financing
- Fixed Assets: Machinery, cold
storage, transport vehicles.
- Working Capital: Raw milk
procurement, packaging, marketing.
- Financing: Combination of
promoter’s capital + bank loans + subsidies under dairy development
schemes.
Technical Arrangements
- Pasteurization units, milk
separators, chilling tanks.
- Packaging units for milk and
curd.
- Cold chain logistics for
transportation.
Environmental Concerns
- Proper waste management for milk
by-products.
- Effluent treatment plant for
wastewater.
- Biogas generation from cow dung
(if backward integration is done).
Profitability Projections
- Daily milk processing capacity:
5,000 liters (initial phase).
- Expected turnover: ₹3–5 crore
annually in 3 years.
- Profit Margin: 10–15% after
initial 2 years.
Management Evaluation
- Company Structure: Private
Limited / Partnership.
- Board: Founder, Finance Manager,
Operations Head, Marketing Head.
- Articles of Association: Capital
contribution, borrowing power defined.
Technical Feasibility
- Technology: Pasteurization and
homogenization (standard).
- Location Advantage: Access to farmers, easy
transport to city markets.
- Machinery Suppliers: Local dairy machinery suppliers
(e.g., Alfa Laval, SSP India).
- Raw Materials: Milk from local farmers,
packaging material from vendors.
- Implementation: 12–18 months timeline.
Commercial Viability
- Huge demand for milk and milk
products in India.
- Market dominated by Amul, Mother
Dairy, but local brands thrive regionally.
- Sales strategy: Tie-up with local
shops, direct delivery to homes, online delivery apps.
- Export potential: Ghee and milk
powder to Middle East/Africa (long-term).
Financial Feasibility
- Project Cost: ₹50–80 lakhs.
- Operating Cost: Procurement + processing +
distribution.
- Revenue Streams: Milk, curd, paneer, ghee,
flavored milk.
- Funding: Bank loans, subsidies (NABARD,
Dairy Development Board).
- Cash Flow: Positive from Year 2.
Project Submission & Presentation
- Crisp report highlighting demand,
viability, and financial projections.
- Present to banks, NABARD, and
state dairy development boards for financial support.
Project Appraisal
- Market Appraisal: High demand, assured daily
consumption.
- Technical Appraisal: Proven technology, reliable
suppliers.
- Managerial Appraisal: Skilled management team with
experience.
- Ecological Appraisal: Sustainable waste management,
compliance with pollution norms.
Practical No. 3
Case study on ‘Risks associated with enterprise
Introduction
Dairy farming is one of the most promising agro-based businesses in
India, offering stable income and employment opportunities. However, like any
enterprise, dairy farming involves various risks that can affect production,
profitability, and sustainability. Understanding these risks is essential for entrepreneurs
before starting a dairy production farm.
Overview of the Dairy Production Farm
- Business Type: Small-scale dairy production
farm
- Products: Milk, curd, ghee, paneer,
flavored milk
- Location: Rural area close to urban
markets
- Capacity: 50–100 cows producing ~400–500
liters/day
- Market: Local households, hotels, sweet
shops, and retail stores
Types of Risks in Dairy Enterprise
1. Technical Risks
- Animal Health & Disease: Outbreaks like Foot and Mouth
Disease, Mastitis, or Brucellosis can severely affect production.
- Breeding Challenges: Infertility or poor breeding
practices reduce milk yield.
- Feed & Nutrition: Poor quality feed leads to low
productivity.
- Infrastructure Failure: Breakdown of milking machines,
chillers, or storage tanks affects quality and causes spoilage.
Mitigation:
- Regular veterinary checkups and
vaccination.
- Quality control of feed and
water.
- Proper maintenance of equipment
and hygiene.
2. Financial Risks
- High Initial Investment: Cost of land, cattle, machinery,
and infrastructure.
- Cash Flow Problems: Delay in payments from buyers or
distributors.
- Price Fluctuations: Variations in milk prices due to
market demand and supply.
- Credit Risk: Difficulty in repaying loans if
revenue drops.
Mitigation:
- Avail government subsidies and
schemes (e.g., NABARD, PMEGP).
- Diversify income streams
(value-added products).
- Maintain emergency funds and
proper financial planning.
3. Market & Commercial Risks
- Competition: Presence of established brands
like Amul and Mother Dairy.
- Consumer Preference Shift: Demand for organic or A2 milk
affecting traditional products.
- Distribution Challenges: Inefficient cold chain logistics
can lead to spoilage and losses.
Mitigation:
- Develop unique selling points
(USP) such as “fresh farm milk” or “organic dairy.”
- Build strong brand trust through
quality and hygiene.
- Use subscription-based home
delivery and digital marketing.
4. Environmental & Climatic Risks
- Climate Impact: Extreme weather affects cattle
health and milk production.
- Water Shortage: Essential for cattle and
cleaning operations.
- Waste Management Issues: Improper disposal can cause
pollution and penalties.
Mitigation:
- Rainwater harvesting and
sustainable water use.
- Biogas plants for manure
utilization.
- Climate-resilient shelter and
cooling systems.
5. Legal & Regulatory Risks
- FSSAI Compliance: Non-adherence to food safety
norms leads to penalties.
- Licensing Issues: Delays or failure to obtain
required permits.
- Animal Welfare Laws: Violations can cause legal
consequences.
Mitigation:
- Follow all legal and regulatory
norms.
- Regular training on food safety
and animal handling.
Case Study Findings
A survey of small dairy farms in Maharashtra revealed that animal
health and disease risks (35%), followed by market fluctuations (25%),
and financial challenges (20%) are the most significant threats.
However, farms that adopted preventive healthcare, diversified products, and
strong branding showed 30–40% higher profit margins.
Conclusion
Risks are an inevitable part of any enterprise, including dairy farming.
Identifying, analyzing, and preparing for these risks is crucial for
sustainability. By using proper risk management strategies — such as disease
control, financial planning, quality assurance, and market innovation — a dairy
production farm can minimize potential losses and ensure long-term success.
Practical
No. 4
Preparation of report on ‘Development of new Product’
1. Introduction
Product development is the process of transforming an idea into a
market-ready product. It involves research, design, testing, and
commercialization to meet consumer needs and business goals. Developing a new
product is essential for enterprise growth, competitive advantage, and
sustainability in the market.
2. Objectives of New Product
Development (NPD)
- To satisfy unmet customer needs.
- To diversify the company’s
product line.
- To gain a competitive edge in the
market.
- To increase revenue and market
share.
- To adapt to technological and
lifestyle changes.
3. Stages of New Product Development
- Idea Generation
- Sources: customers, employees,
competitors, R&D, market research.
- Example: Identifying demand for organic
flavored milk.
- Idea Screening
- Evaluate feasibility, costs,
risks, and market potential.
- Eliminate impractical or
high-risk ideas.
- Concept Development & Testing
- Create prototypes or samples.
- Conduct customer surveys and
collect feedback.
- Business Analysis
- Estimate investment, costs,
profits, and risks.
- Forecast sales and ROI.
- Product Development
- Actual design and engineering of
the product.
- Test for quality, safety, and
compliance with standards.
- Market Testing
- Launch pilot trials in selected
markets.
- Collect data on consumer
response, pricing, and demand.
- Commercialization
- Full-scale production and
marketing.
- Distribution through retail,
online, and wholesale channels.
4. Factors Affecting New Product
Development
- Market demand and customer
preferences.
- Availability of technology and
raw materials.
- Competitors’ strategies.
- Regulatory policies and
compliance.
- Financial resources and
investment capability.
5. Case Example: Development of New
Dairy Product
- Idea: Launch a Probiotic Yogurt
Drink (health-focused).
- Concept Testing: Survey urban customers who
prefer healthy beverages.
- Business Analysis: Growing health-conscious
segment, profit margin ~15%.
- Product Development: Small batch production, flavored
prototypes.
- Market Testing: Sell through local supermarkets
for 3 months.
- Commercialization: Brand launch with attractive
packaging, digital marketing campaigns.
6. Advantages of Developing New
Products
- Expands customer base.
- Builds brand value and
recognition.
- Increases revenue streams.
- Keeps business competitive in
changing markets.
7. Challenges in New Product
Development
- High R&D and marketing costs.
- Risk of failure due to poor
demand.
- Long development cycles.
- Uncertainty about consumer
acceptance.
8. Conclusion
The development of new products is crucial for business survival and
growth. By following systematic steps, conducting research, and testing the
market, enterprises can reduce risks and increase the chances of success. A
carefully planned product development process helps in achieving both customer
satisfaction and long-term profitability.
Practical
No. 6
Market
survey for setting up new Start up
1. Purpose & Scope
To assess demand, competition, pricing, distribution channels, customer
preferences and entry feasibility for a dairy-products startup (liquid milk +
value-added products such as curd, paneer, ghee, flavored milk, probiotic
yogurt) in an Indian semi-urban / urban market.
Geographic scope: proposed Maharashtra / Kolhapur
Time horizon: short term (0–12 months pilot) and medium term (1–3 years
scale-up)
2. Key headline market facts
(data-backed)
- High per-capita
availability/consumption: India’s per-capita availability of milk reached ~471 g/day in
2023–24, well above the world average.
- Large & growing market size: Indian dairy market value is
large and projected to grow
strongly; value-added segments are expanding faster than liquid milk.
- Consumer shift to value-added
& health products: demand is rising for cheese, flavored milk, probiotic yogurt, and
A2/organic milk. Value-added products generally offer higher margins.
- Strong incumbents but regional
opportunity: National brands (Amul, Mother Dairy) dominate organized markets,
while local brands and niche players (Hatsun, regional co-ops) succeed
regionally—creating both competition and white-space for focused local
offerings.
3. Target customers & segments
- Household consumers (mass) — daily liquid milk and curd.
- Health-conscious consumers
(premium) — A2 milk, probiotic yogurt, low-fat dairy.
- Working professionals / students
(convenience) — flavored milk, ready-to-drink yogurt.
- Retail & HORECA (bulk buyers) — restaurants, tiffin services,
bakeries, hotels.
- Institutional — schools, hospitals, offices
(milk supply contracts).
4. Demand drivers & consumer
preferences
- Daily nutrition habit: milk
consumed daily in most households; habit sticky.
- Rising disposable incomes and
health awareness → interest in protein-rich, probiotic and premium
variants.
- Urban convenience & on-the-go
lifestyle → demand for packaged, hygienic, and ready-to-drink options.
5. Competition landscape (local +
national)
- National cooperatives &
brands: Amul, Mother Dairy (strong supply chains & trust).
- Private regional players: Hatsun, Milky Mist, KMF — often
strong in southern/other states and expanding product portfolios (protein
products, retail outlets).
- Unorganized/local vendors: small local dairies and direct
farmer supplies—compete on price/freshness.
Implication: Differentiate via freshness, product quality (hygiene/FSSAI compliance), niche positioning (A2, probiotic), or superior last-mile service.
6. Pricing & margins (guideline)
- Liquid milk: low margin (commodity), high
turnover — price parity with local competitors required.
- Value-added products (paneer,
ghee, probiotic yogurt, flavored milk): higher gross margins (use to
subsidize marketing & logistics).
- Recommendation: Use everyday milk to drive
footfall / subscriptions and promote higher-margin SKUs through sampling
and bundles.
7. Distribution & sales channels
- Traditional retail: local kirana shops,
supermarkets.
- Direct to Consumer (D2C): home-delivery subscription model
(morning milk drops).
- Modern trade & e-commerce: supermarket chains, grocery
apps.
- HORECA & institutional
contracts: stable bulk orders.
Cold chain & last-mile logistics are critical; ensure chilling facilities and backup power.
8. Regulatory & quality
checkpoints
- FSSAI registration & licenses (mandatory).
- Lab testing for microbial counts,
adulteration checks, and shelf-life validation.
- Pack labeling, shelf-life, and
food safety documentation.
- Environmental compliances
(effluent treatment, waste handling).
Failure to comply can bring penalties and reputational damage.
9. Primary market survey methodology
(how you should collect local data)
- Quantitative:
- 300–500 household surveys across
target neighborhoods (stratified by income).
- Questions: daily milk usage (L),
brand preference, willingness to pay for premium variants, purchasing
channel, churn reasons.
- Qualitative:
- 8–10 focus groups (young
professionals, homemakers, elders) for product concept testing (e.g.,
probiotic drink taste).
- Interviews with 20+ retailers
and 10 HORECA buyers to assess buying patterns and margins.
- Pilot test:
- 1–3 month trial in 1–2
localities with sample SKUs, door-delivery + retail supply to measure
repeat rate, spoilage %, and unit economics.
Suggested survey questions (examples):
- How many liters of milk do you
buy per week?
- Which brands do you buy and why?
(price, taste, trust, packaging)
- Would you pay a premium for A2
milk / probiotic yogurt? If yes, how much (%)?
- Preferred purchase mode: shop /
home-delivery / app?
- Pain points with current milk
supply (freshness, adulteration, price, delivery timing).
10. Sample data targets & KPIs for
pilot
- Repeat purchase rate: ≥60% for D2C subscribers after
month 1.
- Daily spoilage/loss: ≤2–3% (target with good cold
chain).
- Customer acquisition cost (CAC): track for D2C (target < 30%
of first-month gross margin).
- Contribution margin per SKU: target positive within 6–9
months.
11. SWOT (short)
- Strengths: Essential product, recurring
demand; potential farmer linkages.
- Weaknesses: Perishable inventory, high
cold-chain costs, competition from large brands.
- Opportunities: Value-added products, health
trends (A2, probiotic), subscription models.
- Threats: Price wars, supply disruption,
regulatory non-compliance.
12. Recommendations (actionable)
- Start with a narrow geography (1–2 cities or districts) to
control cold chain and quality.
- Offer mix: everyday liquid milk + 2–3
value-added SKUs (e.g., paneer, probiotic yogurt, ghee).
- Pilot D2C subscription + retail
distribution simultaneously to test channels.
- Focus on quality & FSSAI
compliance from day-one — use as a trust differentiator.
- Collect primary data (300–500 household surveys +
retailer interviews) and run a 2-month pilot before larger CAPEX.
- Track KPIs: repeat rate, spoilage, CAC,
contribution margin; iterate products/pricing quickly.
13. Next steps & timeline
- Week 0–2: finalize location, hire
survey team, prepare questionnaires.
- Week 3–8: conduct primary survey
+ retailer/HORECA interviews.
- Month 3–4: run product pilot
(small capacity 2–5 KL/day), gather KPIs.
- Month 5–6: analyze pilot, refine
product mix & pricing, prepare bank pitch / investor deck for
scale-up.
14. Sources (key references)
- Per-capita milk availability (PIB
/ DAHD): per-capita availability ~471 g/day (2023–24).
- India dairy market size &
projections (Fortune Business Insights; IMARC).
- Market trends: growth in
value-added products, A2 and probiotic segments.
- Competitor landscape: Amul,
Mother Dairy, regional players; recent moves by Hatsun (product
extensions).
Practical
No. 8
Preparation
of report on ‘Information for setting up new startup’ from MCED/MSME/KVIC etc.
1. Introduction
Starting a new enterprise requires planning, resources, and institutional
support. In India, several organizations such as MCED, MSME, KVIC, NABARD,
and SIDBI provide training, financial assistance, and guidance for
entrepreneurs. These agencies play a vital role in reducing entry barriers and
helping startups become sustainable.
2. Role of Support Agencies
(a) MCED – Maharashtra Centre for Entrepreneurship Development
- Provides entrepreneurship
development training programs.
- Offers business counseling and
project report preparation support.
- Conducts skill development
programs for new entrepreneurs.
- Helps in networking with
financial institutions for loans.
(b) MSME – Ministry of Micro, Small and Medium Enterprises
- Defines MSME classification and
provides registration (Udyam) for startups.
- Offers financial schemes
(subsidies, credit guarantees, soft loans).
- Provides cluster development
and market linkage support.
- Facilitates technology
upgradation and skill training.
(c) KVIC – Khadi and Village Industries Commission
- Promotes rural and village
industries.
- Implements Prime Minister’s
Employment Generation Programme (PMEGP) for financial assistance.
- Offers subsidy schemes for
agro-based, food-based, and craft-based startups.
- Helps in creating employment
opportunities in rural areas.
(d) Other Supporting Institutions
- NABARD – Financial support for agro
& dairy enterprises.
- SIDBI – Loans for small businesses
& startups.
- DIC (District Industries Centre) – Local-level assistance,
registration, and approvals.
3. Information Required for Setting up
a New Startup
When approaching these agencies, the entrepreneur must prepare and
submit:
- Business Idea / Project Report – details of product/service,
process, technology.
- Promoter’s Profile – background, skills, and
experience.
- Financial Details – estimated cost, sources of
finance, working capital.
- Market Information – demand analysis, competitor
study, pricing strategy.
- Legal Requirements – registrations, licenses, GST,
FSSAI (for food startups).
- Environmental & Technical
Details – if applicable (especially for dairy, agro, chemical industries).
4. Benefits to Startups
- Financial Assistance: Subsidized loans, grants, and
credit guarantee schemes.
- Training & Capacity Building: Entrepreneurship skill programs
by MCED, MSME, and KVIC.
- Market Linkages: Support in exhibitions, trade
fairs, e-commerce platforms.
- Mentorship & Handholding: Guidance from experts and
successful entrepreneurs.
- Government Subsidies: PMEGP subsidy (up to 35%) for
eligible projects.
5. Example: Dairy Products Startup
- MCED: Can provide training in
entrepreneurship and project preparation.
- MSME: Register under Udyam to access
loans, subsidies, and cluster support.
- KVIC: Apply under PMEGP for subsidies
on setting up milk processing units.
- NABARD: Avail credit schemes for dairy
development.
This combination ensures both financial support and business mentoring.
6. Conclusion
Entrepreneurship support agencies like MCED, MSME, and KVIC are
crucial in transforming ideas into sustainable businesses. By providing finance,
training, and market access, they reduce risks for startups and encourage
self-employment. For a new entrepreneur, collecting proper information from
these agencies and preparing a strong project report is the first step
toward a successful startup journey.
Practical
No. 12
Preparation
of report on ‘feasibility of any Techno-commercial business’.
1. Introduction
Techno-commercial feasibility refers to the assessment of both the technical
feasibility (technology, process, resources, infrastructure) and commercial
viability (market demand, competition, profitability) of a business idea.
This ensures that the proposed venture is practical, sustainable, and
profitable before large investments are made.
2. Objectives of Feasibility Study
- To evaluate the availability and
suitability of technology for production.
- To analyze market demand and
consumer preferences.
- To estimate investment costs,
profitability, and risks.
- To check compliance with legal,
environmental, and safety norms.
- To support funding applications
(banks/MSME schemes).
3. Technical Feasibility (Example:
Dairy Startup)
- Product Line: Pasteurized milk, curd, paneer,
ghee, flavored milk.
- Technology Required: Pasteurizers, homogenizers,
chilling tanks, packaging machines.
- Raw Materials: Raw milk sourced directly from
farmers or cooperatives.
- Location Advantage: Near milk-producing villages
with good road connectivity to cities.
- Manpower Needs: Skilled technicians for
processing + semi-skilled staff for packaging and distribution.
- Infrastructure: Cold storage, transport vans
with refrigeration, effluent treatment system.
- Implementation Schedule: 12–15 months (setup,
procurement, licensing, trial production).
4. Commercial Feasibility
- Market Demand: India is the world’s largest
producer and consumer of milk. Demand for value-added products like
yogurt, probiotic drinks, and paneer is rising.
- Target Customers: Households, hotels, restaurants,
caterers, modern retail, and online grocery buyers.
- Competition: Strong presence of Amul, Mother
Dairy, and regional brands, but local startups have an edge in freshness
and direct delivery.
- Pricing Strategy: Maintain competitive milk
pricing; charge premium for organic/A2 milk and probiotic products.
- Revenue Sources:
- Daily milk sales
(volume-driven).
- Value-added dairy products
(higher margins).
- Sales Channels: Retail shops, home delivery
subscriptions, tie-ups with supermarkets, e-commerce platforms.
- Profitability:
- Initial Investment: ~₹50–80
lakhs (plant + machinery + working capital).
- Break-even: Expected in 2–3
years.
- Net profit margin: 10–15% in
steady state.
5. Risks and Challenges
- Technical Risks: Machine breakdowns, cold-chain
failures → product spoilage.
- Market Risks: Price wars with big brands,
seasonal fluctuations in demand.
- Financial Risks: High upfront investment, delayed
customer payments.
- Regulatory Risks: Compliance with FSSAI,
environmental norms.
Mitigation:
- Maintain backup systems, invest
in preventive maintenance.
- Diversify products (milk +
value-added).
- Build strong brand trust through
quality and hygiene.
- Avail government subsidies
(PMEGP, MSME, NABARD).
6. Conclusion
The feasibility study of a dairy-based techno-commercial business shows
that it is technically possible and commercially viable. With consistent
demand, government support, and opportunities in value-added products, the
business has strong growth prospects. However, success depends on efficient
supply chain management, compliance with quality standards, and strategic
marketing.
Practical
No. 13
A case study based on ‘Unique selling Proposition (USP) of
any successful enterprise’.
1. Introduction
A Unique Selling Proposition (USP) is the distinctive feature or
benefit that makes a company’s product or service stand out from competitors.
It is the reason customers choose one brand over another. A strong USP is
clear, memorable, and focuses on solving customer problems better than anyone
else.
This case study explores the USP of Amul, one of India’s most
successful dairy enterprises.
2. About the Enterprise – Amul
- Name: Amul (Anand Milk Union Limited)
- Founded: 1946
- Headquarters: Anand, Gujarat, India
- Industry: Dairy products
- Products: Milk, butter, cheese, curd,
paneer, ice cream, ghee, chocolate, etc.
- Tagline: “The Taste of India”
3. USP of Amul – What Makes It Unique?
- Cooperative Business Model:
- Amul is owned by millions of
farmers who supply milk, ensuring fair pricing and sustainable
livelihoods.
- This farmer-first approach
builds trust and authenticity among consumers.
- High-Quality, Affordable
Products:
- Amul offers quality dairy
products at reasonable prices, making them accessible to all income
groups.
- Consistent quality is a major
reason customers remain loyal.
- Wide Product Range:
- From milk and butter to
chocolates and ice creams, Amul provides a diverse range under one brand.
- It caters to everyday household
needs and premium segments simultaneously.
- Strong Branding & Marketing:
- Iconic “Amul Girl”
advertisements are witty, topical, and memorable.
- The brand communicates trust,
tradition, and modernity all at once.
- Nationwide Distribution Network:
- Amul products are available in
nearly every village, town, and city in India.
- Strong supply chain and cold
storage infrastructure ensure freshness and reliability.
4. Impact of USP on Success
- Brand Loyalty: Customers trust Amul for quality
and affordability.
- Market Leadership: Amul is India’s largest dairy
brand and a global exporter.
- Social Impact: Empowered over 3.6 million dairy
farmers through cooperative structure.
- Sustained Growth: Diversified into multiple
product categories while maintaining its core identity.
5. Conclusion
Amul’s USP — “High-quality, affordable dairy products sourced directly
from farmers through a cooperative model” — has been the cornerstone of its
success. It differentiates Amul from competitors not just as a brand but as a
movement that combines social good with commercial excellence.
Practical
No. 14
Prepare project report for starting new startup using ‘Atal
incubation center (AIC)’.
1. Introduction
Entrepreneurship plays a vital role in economic growth and employment
generation. To support innovative ideas and budding entrepreneurs, the
Government of India launched the Atal Innovation Mission (AIM) under
NITI Aayog, which established Atal Incubation Centres (AICs) across the
country.
These centers provide infrastructure, mentorship, funding support, and
networking opportunities to convert innovative ideas into sustainable
businesses. This report outlines the plan for starting a Dairy Products
Startup with the support of AIC.
2. Project Title
“Fresh Dairy – A Farm-to-Home Dairy Products Startup”
3. Vision and Mission
- Vision: To become a trusted provider of
fresh, hygienic, and value-added dairy products directly from farms to
homes.
- Mission: To empower local farmers, reduce
supply chain inefficiencies, and deliver premium-quality dairy products to
consumers through sustainable practices.
4. Objectives of the Startup
- To produce and market milk and
value-added products like paneer, curd, ghee, and flavored milk.
- To build a direct supply chain
between farmers and consumers.
- To use technology for cold chain
management and doorstep delivery.
- To promote rural employment and
farmer income.
5. Role of Atal Incubation Centre
(AIC)
|
Support Area |
How AIC Helps |
|
Infrastructure |
Provides workspace, R&D labs,
and product testing facilities. |
|
Mentorship |
Access to experts in business
strategy, marketing, legal, and finance. |
|
Funding Support |
Helps connect with angel investors,
venture capital, and government grants. |
|
Training & Capacity Building |
Workshops, entrepreneurship
development programs, and networking events. |
|
Market Linkages |
Partnerships with industry players
and access to trade fairs and exhibitions. |
6. Business Model of the Startup
- Raw Material: Fresh milk procured from local
farmers.
- Processing: Pasteurization, homogenization,
packaging.
- Products: Milk, curd, ghee, paneer,
flavored milk.
- Sales Channels:
- Direct-to-consumer (home
delivery subscriptions)
- Retail outlets and supermarkets
- Online grocery platforms
- Revenue Streams: Sale of dairy products, premium
organic milk line, and value-added products.
7. Market Analysis
- India is the largest producer
and consumer of milk, with growing demand for branded, hygienic dairy.
- Rising health awareness has
increased demand for organic and probiotic dairy products.
- Urban consumers prefer doorstep
delivery and subscription models for convenience.
- Opportunity to compete locally by
focusing on freshness, quality, and direct sourcing.
8. Technical Feasibility
- Plant Capacity: 2,000 liters/day (expandable).
- Machinery: Pasteurizer, milk chilling unit,
packaging machine, cold storage.
- Manpower: 15 employees (production,
logistics, marketing).
- Technology: IoT-based cold chain monitoring,
mobile app for order management.
9. Financial Feasibility (Approximate)
|
Particulars |
Amount (₹) |
|
Land & Building (Leased) |
5,00,000 |
|
Plant & Machinery |
20,00,000 |
|
Cold Storage & Transport |
10,00,000 |
|
Working Capital |
8,00,000 |
|
Marketing & Branding |
5,00,000 |
|
Total Estimated Cost |
48,00,000 |
- Sources of Finance:
- Promoter’s Contribution –
₹15,00,000
- Bank Loan / Venture Funding –
₹25,00,000
- AIC & Government Grants –
₹8,00,000
- Break-even Period: 2.5 to 3 years
- Net Profit Margin (Year 3): ~12–15%
10. Implementation Plan (Timeline)
|
Phase |
Activity |
Duration |
|
Phase 1 |
Idea validation & market
research |
1–2 months |
|
Phase 2 |
Incubation & mentorship under
AIC |
3–4 months |
|
Phase 3 |
Setup of plant & procurement of
machinery |
2–3 months |
|
Phase 4 |
Pilot production & testing |
1 month |
|
Phase 5 |
Launch and commercial production |
Month 10 onwards |
11. Risk Assessment and Mitigation
|
Risk |
Mitigation Strategy |
|
Disease outbreak in cattle |
Regular veterinary care and
vaccination. |
|
Cold chain failure |
Backup power and real-time
temperature monitoring. |
|
Market competition |
Focus on freshness, subscription
model, and quality. |
|
Regulatory compliance |
Strict adherence to FSSAI and
environmental norms. |
12. Conclusion
The proposed dairy products startup, supported by the Atal Incubation Centre, is both technically feasible and commercially viable. With strong market demand, effective risk management, and the comprehensive support ecosystem provided by AIC — including mentorship, funding, and infrastructure — the enterprise has the potential to grow into a sustainable and scalable business, contributing to both rural livelihoods and the urban economy.
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