Icfai University, Dehradun

Student Name Mohit Wadhwa

IUD No 0901201308

IBS No 09bs0001308

Course Code: ENT 601

Course Name: Entrepreneur development

Faculty Name: Prof. Surjaya B Gohain

Date: 19-01-2011

Topic of the Assignment

Business plan “Dairy farm”

Student Signature Faculty Signature

 SWOT ANALYSIS OF the company

Strengths:

 Demand profile: Absolutely optimistic.

 Margins: Quite reasonable, even on packed liquid milk.
 Flexibility of product mix: Tremendous. With balancing equipment, you can keep on
adding to your product line.

Weaknesses:

 Lack of control over yield: Theoretically, there is little control over milk yield.
However, increased awareness of developments like embryo transplant, artificial
insemination and properly managed animal husbandry practices, coupled with higher income
to rural milk producers should automatically lead to improvement in milk yields
 Logistics of procurement: Woes of bad roads and inadequate transportation facility
make milk procurement problematic. But with the overall economic improvement in India,
these problems would also get solved.
 Competition: With so many newcomers entering this industry, competition is becoming
tougher day by day. But then competition has to be faced as a ground reality. The market is
large enough for many to carve out their niche.

Opportunities:

 Export potential: Efforts to exploit export potential are already on. Amul is exporting to
Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following the new GATT treaty,
opportunities will increase tremendously for the export of agri-products in general and dairy
products in particular.
  Extension of the product line: There are lots of opportunities into dairy sector and
chances of getting into production of other milk based products are also high.

Threats:

Milk vendors, the un-organized sector

Today milk vendors are occupying the pride of place in the industry. Organized dissemination of
information about the harm that they are doing to producers and consumers should see a steady
decline in their importance.

Macro Impact

 The annual value of India's anticipated milk production amounts to more than Rs.1,430
billion in 08-09.

 Dairy cooperatives generate employment opportunities for around 13.9 million farm
families.

 Livestock contributes about 25.6 percent to the GDP from agriculture.

 About 22.45 million people work in livestock sector, which is around 5.8% of the total
work force in the country.

Pest analysis

Political

 Government regulation in dairy business as a whole in india ( example-certification,

waste management and etc).

 Government support for small and medium enterprises (SME) in food production for
local and export markets.

 Stable and peaceful environment for conducting business.

Economical

 Economic growth in beverage market (eg. Milk & products) in the local market.
 Increased purchasing power of families on household spending.
 Tax exemption on profits as part of pioneer status to small entrepreneur.

Social

 Increasing awareness of healthy lifestyle through the accepted benefits of milk

consumption.
 Increasing demand for milk consumption in the matured age group.

Technological

 Developing better dairy cows through cross breeding

 Fully automated milk processing system.
 Diversification into production of dairy products.