ENTREPRENEURSHIP DEVELOPMENT AND STARTUPS (EDE) (315002)

 

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:
    1. Procurement of raw milk from farmers.
    2. Quality testing & pasteurization.
    3. Processing into value-added products.
    4. Packaging and cold storage.
    5. 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.

 

 

Enterprise Risk Management: A Complete Guide - Sprinto

 

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

  1. Idea Generation
    • Sources: customers, employees, competitors, R&D, market research.
    • Example: Identifying demand for organic flavored milk.
  2. Idea Screening
    • Evaluate feasibility, costs, risks, and market potential.
    • Eliminate impractical or high-risk ideas.
  3. Concept Development & Testing
    • Create prototypes or samples.
    • Conduct customer surveys and collect feedback.
  4. Business Analysis
    • Estimate investment, costs, profits, and risks.
    • Forecast sales and ROI.
  5. Product Development
    • Actual design and engineering of the product.
    • Test for quality, safety, and compliance with standards.
  6. Market Testing
    • Launch pilot trials in selected markets.
    • Collect data on consumer response, pricing, and demand.
  7. 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

  1. Household consumers (mass) — daily liquid milk and curd.
  2. Health-conscious consumers (premium) — A2 milk, probiotic yogurt, low-fat dairy.
  3. Working professionals / students (convenience) — flavored milk, ready-to-drink yogurt.
  4. Retail & HORECA (bulk buyers) — restaurants, tiffin services, bakeries, hotels.
  5. Institutional — schools, hospitals, offices (milk supply contracts).

 

 

How to Conduct Market Research for Startups

 

 

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)

  1. 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.
  2. 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.
  3. 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)

  1. Start with a narrow geography (1–2 cities or districts) to control cold chain and quality.
  2. Offer mix: everyday liquid milk + 2–3 value-added SKUs (e.g., paneer, probiotic yogurt, ghee).
  3. Pilot D2C subscription + retail distribution simultaneously to test channels.
  4. Focus on quality & FSSAI compliance from day-one — use as a trust differentiator.
  5. Collect primary data (300–500 household surveys + retailer interviews) and run a 2-month pilot before larger CAPEX.
  6. 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.

 

 

No photo description available.


3. Information Required for Setting up a New Startup

When approaching these agencies, the entrepreneur must prepare and submit:

  1. Business Idea / Project Report – details of product/service, process, technology.
  2. Promoter’s Profile – background, skills, and experience.
  3. Financial Details – estimated cost, sources of finance, working capital.
  4. Market Information – demand analysis, competitor study, pricing strategy.
  5. Legal Requirements – registrations, licenses, GST, FSSAI (for food startups).
  6. 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.

How to Determine the Feasibility of a Business Idea? - ALCOR FUND


 

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”

The success story of the world's ninth-largest dairy company, Amul


 

 

3. USP of Amul – What Makes It Unique?

  1. 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.
  2. 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.
  3. 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.
  4. Strong Branding & Marketing:
    • Iconic “Amul Girl” advertisements are witty, topical, and memorable.
    • The brand communicates trust, tradition, and modernity all at once.
  5. 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.

Atal Incubation Centre - Rambhau Mhalgi Prabodhini


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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