Presentation is based on GIS and a business plan.

1. GIS based Supply Chain Analysis of Maize
& Business Plan for Maize Feed Industry in
Chhattisgarh
Submitted By
Sudarshan Kumar Patel
(PGDMA-1320)
Under Guidance of
Dr. NH Rao & Dr. K. Srinivas
Principal Scientist & Professor

2. Flow of Presentation
1.Introduction
2.Objectives
3.Research Methodology
4.Results & Discussions
5.Conclusion
6.Learnings
7.References

3. Introduction
•The production of maize in 2013-14 was 23 million tones in India.
• In India, maize is the third important food crops after wheat & Rice.
• Agriculture in Chhattisgarh (CG) is the means of livelihood of about
77% of the population of the state living in villages with over 80% as
small and marginal farmers.(Agricultural census,2011)
• The five major crops produced in Chhattisgarh are Rice, Gram,
Maize, Wheat and Soybean.
•The total area and production of maize in Chhattisgarh is 107.23
(000MT) and 207.50 (000Ha) respectively.
• There are only 6 feed plants running in Chhattisgarh within 3 districts.
•The rising incomes have also led to an increased consumption of
meat, particularly of poultry, which has increased the demand for maize
as feed in Chhattisgarh.

4. Objectives
This study focuses on using GIS tools to assess the maize feed industry
supply chain in Chhattisgarh state with the objective of developing a viable
business model for the industry in the SME category. The specific objectives
are:
• To develop a geospatial database of maize production, resources, and
storage and , marketing related infrastructure in Chhattisgarh state.
• To assess the business potential for maize feed industry in Chhattisgarh.
• To identify a suitable location for a maize feed plant and create a value
driven business model for maize feed industry in the region.

5. Research Methodology
• Study Area- Chhattisgarh State
• Data Collection
The research is based on secondary data available from NAARM GIS
Lab and different websites, literatures, reports & journals.
Data Analysis

6. District Wise Rainfall & productivity of Maize using GIS
•An Average 600-1100 mm rainfall is
required for maize.
•All the districts have adequate rainfall.
•Average productivity of the State is
2,069 kg/ha. as against 2430 kg/ha
maize average productivity of the
country.
•There are 5 districts with high
productivity.
(Dhamtari,Raigarh,Beejapur,
Data Source: www.apy.dacnet.in(2012); GIS map using
QGIS1.7.4

7. District wise irrigation Facility and maize irrigated area
• Gross cropped area is 5.561 million ha in
Chhattisgarh.
• 8 districts of Chhattisgarh has no proper sources
of Irrigation.
• Irrigation potential created so far whereas total
irrigated area less which is 33.15% of gross
cropped area
• In 8-9 districts maize have enough area for
irrigation.
• Rest of the districts have no irrigated area of
maize even though productivity is more.
Data Source: cgstate.gov.in , GIS map using QGIS1.7.4

8. District wise Total consumption of (N/P/K) in tonnes
•For maize average
recommended dosage
of fertilizer in CG
should be used
80:50:30 kg/ha(N: P2
O5: K2O)
Data Source: Economic Survey
,CG ,2013; GIS map using
QGIS1.7.4

9. Poultry and Cattle Population
Except few districts , the population of poultry as well as cattle are in lakhs in number. Raipur and
Durg district has huge population of livestock and poultry. Huge Opportunity for feed industry.
Source- CG Official website, Map using QGIS 1.7.4

10. Demand and Supply of Feed Requirements
The demand for dairy and poultry products is increasing with growth in the economy and
incomes. As a result, feed requirement is also increasing. As our economy growing the
demand of dairy and poultry products is increasing. The total Feed requirement in
Chhattisgarh state is calculated based on total poultry and cattle population in the state.
In figure the feed demand is more among all districts in Chhattisgarh , the maize supply
for feed is less to meet that demand.
In figure the feed demand is more among all districts in Chhattisgarh , the maize supply
for feed is less to meet that demand.

11. Supply Chain of Maize in Chhattisgarh
Quantity Farm
gate
Wholesa
ler
Gross
revenue
Operatio
nal cost
Net
revenue
Per kg ₹11.8/k
g
₹12.10/
kg
₹0.30
1 quintal ₹1180/
Qtl
₹1210/
Qtl
₹30
50
quintal
₹59000 ₹60500 ₹3000 ₹1500 ₹1500
Expenses Rate Total per quintal
Purchase price ₹12.10/kg 1210
Mandi tax 0.5% of MSP 6.05
Labour charge ₹8/quintal 8.00
Total cost ₹1224 /quintal
Sale to private
agency/feed plant
₹12.50/kg ₹1250/quintal
Profit ₹26/quintal

12. Storage Capacity and Number of Mandis
Data source : Chhattisgarh Agricultural
Marketing Board,2013 and INDIASTAT

13. ‘
To create a value driven business model for Maize
Feed Plant
Business Model
It is proposed to established a maize feed plant named Patel Feed
Industries Pvt. Ltd. With capacity of 100MT/day. The enterprise will also be
responsible for procurement, sales & marketing of products. The Plant will
be establish in Sarguja District.
Total Market of Maize Feed in Chhattisgarh :
Average
Production of
Maize in
Chhattisgarh
(000 MT)
Maize kept for
seed(@10%)
(000 MT)
Maize Available for
feed
(000 MT)
Value of Maize
feed @
Rs.17000/MT
207.51 20.751 117.66
₹ 200.02 cr.

14. Supply Chain of Maize with Business Opportunity

15. Manufacturing Process of Feed

16. SWOT of Maize feed Industry
Strengths Weaknesses
1. Huge production potential of maize
2.Low labour cost (Geographic
location).
3.Nutrient Content for cattle and
poultry
4.Large no. of small and marginal
farmers involved in dairying
5. Very large no. of animals and huge
scope to enhance productivity
1. New to business.
2. Lack of experience.
3. Time to establish market linkages.
4. Lack of storage facility.
Opportunities Threats
1.Increasing demand of dairy and
poultry products
2.Increasing per capita income
3. Increased farmer income by
exploiting the high demand
1. Others big private player like Cargill, Godrej
agrovet, Amrit feeds, Kapila etc.

17. Porter’s five forces
Forces High/Medium/low Remarks
Industry rivalry low No players in the district.
Chhattisgarh has only 6-7
feed industries
Threat of substitute low Other feed sources like
fodder and grasses
Threat of new entrant high No constraint
Supplier power low Lack of infrastructure and
fund
Buyer power high Substituted by other feed
products
Future strategy
For more profits and business expansion Feed
Company can go for
Increasing the processing capacity : As the
facility can do more processing, after two years of
operation till some profit comes in hand producer
company can also go for processing procured
from other farmers.
Installing an extra machinery : Utilizing the built
market linkages, trust and mill space, feed
company can purchase another machinery for
processing .

18. Strategy
Positioning Value chain Analysis
Low cost Feed with unique quality,
added protein , and other sources Inbound logistic:
•Procurement from village aggregator
•Operations:
Increasing capacity utilization
Outbound logistic:
Direct selling to consumer to capture
value and also with dealer and trader
Marketing &sales:
Inbound
Logistic
Operations Outbound
Logistics
Marketing
& Sales
Service
Control over
Supply chain.
Supplier
relationships
Operating
system.
Hi-tech
machinery
Storage and
distribution.
Long-term
agreements
with
wholesalers
Quality
product
offering.
Penetratio
n pricing
strategy
Product
quality
offered to
customer

19. Marketing Mix
Product-
Maize Feed is value-added feed processed from feed plant. Product is sold in various packets
like 10 Kg, 25 Kg and 50 Kg both for poultry and livestock.
Price-
Penetration pricing, low price than competitors.
Place- Plant will establish in Sarguja District.
Dealers and directly feed shops.
Promotion - We can promote these products through various Farmer fairs. Through posters,
hoarding and other activities like vehicle promotion are the suitable marketing promotions.
Good quality with less price is our main motto.

20. Financial Projections
The estimated capital outlay of the project is Rs. 300 lakh.
Means of Finance: Consortium's contribution Rs.80 lakh and Fund
Grant from DCSSI under small industries cluster development programme for setting
common facility centre is expected to Rs. 280 lakh.
Assumptions
The unit will produce 100MT of extracted feed per day and the unit will work for 300
days in year.
2. The installed capacity of the unit is 30000 MT of feed per year.
3. The capacity utilization is at 50% first year, 55% during second year, 60% third year
and 70% fourth year onwards.
4. The main utilities are power, water, steam etc. The Power requirement is 600-700
unit per day. The power charge is calculated considering the tariff fixed by CGSEB
(Chhattisgarh State Electricity Board) which is 3.65 per unit.₹
5. Repair and Maintenance is provided @ 1% on building and 2% on Plant and
Machinery.
6. Administrative Expenses are provided in the profitability estimate. It includes rates
and taxes travelling expenses, postage telephone and telegram, printing & stationary,
other expenses etc.

21. Cost of Project
Sales revenue @ 50 % capacity utilization:
Sr. No. Particulars Cost( in lakh)₹
1 Land 25
2 technical civil work 25
3 Plant and machinery 150
4 Supporting equipment 50
5 Contingency 20
6 Preliminary and preoperative expenses 19
7 Operating cost 11
300
sales revenue generation Selling
price/tonne
Total production
Annually
Total Revenue
Product
Maize Feed(50% of total
capacity)
16000 15000
(50MT per
day*300 days)
₹ 240000000
(16000*15000)

22. Cash Flow
Year 0 1 2 3 4 5 6 7 8 9
Total Capacity 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000
Capacity Utilization 0 0.5 0.55 0.65 0.65 0.7 0.7 0.75 0.75 0.75
Capacity Used 0 15000 16500 19500 19500 21000 21000 22500 22500 22500
Cost of Raw Material 0 180525000 200227500 237607500 237607500 255885000 256116000 270787500 271170000 272711250
Electricity Cost 0 766500 924000 960000 1147500 1207500 1273125 1323000 1350000 1404000
Salary and Wages 0 2400000 2640000 3000000 3360000 3480000 3600000 3744000 3840000 4080000
Procurement Cost 0 78000 80000 85000 90000 120000 130000 150000 155000 160000
Transportation Cost 0 78000 80000 85000 90000 120000 130000 150000 155000 160000
Promotion Cost 0 12000000 11260000 11270000 11280000 11300000 11340000 11360000 11380000 11400000
R & M on Plant & Machinary 0 3000000 4000000 4200000 4400000 5000000 5400000 5800000 6000000 6400000
R & M on Building 0 5000000 6000000 6500000 7000000 7400000 7600000 7800000 8000000 8200000
Processing Cost 0 3610500 4004550 4752150 4752150 5117700 5122320 5415750 5423400 5454225
Total Cost 0 207458000 229216050 268459650 269727150 289630200 290711445 306530250 307473400 309969475
Administration Cost 0 20745800 22921605 26845965 26972715 28963020 29071144.5 30653025 30747340 30996947.5
Depreciation 0 4149160 4584321 5369193 5394543 5792604 5814228.9 6130605 6149468 6199389.5
Interest on WC 0 500000 6000000 6500000 6600000 6800000 7000000 7200000 7300000 7400000
Grand Total Cost 0 232852960 262721976 307174808 308694408 331185824 332596818.4 350513880 351670208 354565812
Total Revenue 0 240000000 272250000 331500000 339300000 369600000 370650000 397575000 398025000 405000000
Pofit 0 7147040 9528024 24325192 30605592 38414176 38053181.6 47061120 46354792 50434188
Tax 30% 0 2144112 2858407.2 7297557.6 9181677.6 11524252.8 11415954.48 14118336 13906437.6 15130256.4
Net Profit 0 5002928 6669616.8 17027634.4 21423914.4 26889923.2 26637227.12 32942784 32448354.4 35303931.6
NPV>0 so, Project is acceptable.
Internal Rate of Return (IRR) is calculated at Present value =0 which is 44%. IRR> discount rate (14%) so project is acceptable.
Payback Period: Initial Investment/Annual cash flow = 3 years and 22 days
Benefit Cost Ratio : 3.17

23. Conclusion
• Establish plant with using all resource according to high demand by market.
• GIS can be used as effective tool for value creation.
Learnings
• In depth knowledge of GIS.
• Use of GIS to find business opportunity.

24. References
• 1.Rehanul Hasan (2002). Potassium Status of Soils in India . Better Crops International
Vol. 16, No. 2, November 2002 .
• 2. Ramamurthy, B. and J.C. Bajaj. 1969. Soil Fertility Map of India, Indian Agricultural
Research Institute, New Delhi
• 3. Myerson J. M., (2007), RFID in the Supply Chain: A Guide to Selection and
Implementation, FL, Auerbach
• 4. M.V.Singh.(2008).Micronutrient Fertility Mapping For Indian Soils. All India
Coordinated Research Project of Micro and Secondary Nutrients and Pollutant Elements
in Soils and Plants[Online] Availble from http://www. iisc.nic.in.
• 5. Ministry for Micro, small &medium enterprises .Micro & Small Enterprises Cluster
Development Programme. [Online] Availble from www.dcmsme.gov.in/schemes
• 6.Lowe, T.J., Preckel, P.V., 2004. Decision technologies for agribusiness problems: A
brief review of selected literature and a call for research. Manufacturing & Service
Operations Management, Vol. 6, No. 3, pp.201–208.
• 7. Ghosh, A.B. and R. Hasan.1980. Soil Fertility Map of India, Indian Agricultural
Research Institute, New Delhi