INTRODUCTION CHAPTER 1

HISTORY OF POULTRY FARMING IN INDIA

During IV Plan (1970) period, like any other agricultural commodities, All
India Coordinated Research Project (AICRP) on Poultry Breeding was initiated by Indian
Council of Agricultural Research (ICAR) to produce superior genetic stocks of layers and
broilers to achieve self-reliance in poultry production. The project was operated with a
coordinating unit located at Poultry Research Division, IVRI, till the year 1979 and
subsequently at CARI, Izatnagar till the year 1988. Under this project a network of
research centers were located at different State Agricultural Universities and ICAR
institutes. The Coordination unit, comprising a small group of scientists from different
disciplines with a full time Project Co-ordinator, co-ordinated the work of the different
centers and carried out research programmes.

The research programmes carried out at this Directorate made significant

progress in developing high yielding layer and broiler strains since its inception. The
initial target of 220m eggs set for layers up to 72 weeks of age has been revised to
235,250,260 and 270 and were all achieved. Similarly, in broilers, the initial target of
1500g at 10 weeks was subsequently revised to 1200g at 8 weeks and 1500g at 6 week,
were also achieved. As per approval of Varietal Release Committee on Poultry, the
following layer and broiler crosses have been released for commercial exploitation.

Layer crosses
1. ILI-80 developed at CARI, Izatnagar
2. ILM-90 developed at KAU, Mannuthy
3. ILR-90 developed at ANGRAU, Hyderabad
Broiler crosses
1. B-77 developed at CARI, Izatnagar
2. IBL-80 developed at PAU, Ludhiana
3. IBB-83 developed at UAS, Bangalore
4. IBI-91 developed at CARI, Izatnagar

SANKARA COLLEGE OF SCIENCE AND COMMERCE 1

INTRODUCTION CHAPTER 1

Besides, the Directorate has evolved two synthetic strains viz. Vanaraja and Gramapriya
for back yard farming in tribal and rural areas. Keeping in view the growing demands
and the challenges that the Directorate has to face in future, perspective plan for next 25
years has been prepared with a visionary approach.

During IX plan period the thrust area in major programmes have been identified to
meet the perspective demands of the Directorate which includes:

1. Development of germplasm for backyard farming for rural/tribal areas.

2. Bio-technology approaches for improvement in broiler and layer

populations.

3. Development of gene lines with single gene as sex-linked recessive dwarf

(dw) and naked neck (Na) gene etc., and their utilization in tropical broiler
production.

4. Pure line improvement of colour meat populations to optimize the

production efficiency at parent and broiler level.

5. Pure line improvement of layer population for specific objectives

The vision

Thus enriching small farmer and landless Labour families through a more holistic and
self-reliant approach not only in terms of improvement of income , employment and
nutritional status but also in terms of fostering community development, gender
empowerment and protection of environment, is envisaged on the larger canvass of
‘Rural development’ using poultry as a tool.

SANKARA COLLEGE OF SCIENCE AND COMMERCE 2

INTRODUCTION CHAPTER 1

The mission: The Government of India’s initiative

The Department of Animal Husbandry & Dairying has established four large scale
Central Poultry Breeding Farms located in Mumbai, Bangalore, Bhubaneswar and
Chandigarh and one Central Duck Breeding Farm at Bangalore by re-organizing their
existing infrastructure. The breeding program by these Central Farms has been re-
oriented towards the goal of making rural poultry a viable income generation
proposition. Accordingly, the basic purpose of the scheme is to increase egg and meat
production especially in the rural areas of the country without putting substantial
strain on feed resources and other inputs the cost of which the small farmers are not
able to absorb. This will also meet the specific rural consumer preference as well as
provide subsidiary occupation to rural poor, women and unemployed youth. The State
Governments/ UTs have created sufficient infrastructure and made available technical
manpower in the form of State Poultry Farms. But due to their financial constraints,
the State Governments are unable to fully utilize these facilities as also the facilities
being extended by the Central Farms to make available quality chicks to the farmers.

New Initiative

However, the major weakness of the present approach is absence of necessary

linkages. The Central Poultry Development Organizations (CPDOs) as well as the
State farms merely provide training and produce good quality germplasm. The
enterprising farms link these two components with assistance available under similar
schemes of Department of Women & Child Welfare and provide trainees with initial
assistance in terms of 15-20 chicks plus some feed etc. The Scheme per se does not
provide for these linkages and without them the benefit of training is also lost.
Besides, the most important element of regular guidance and inputs for health care ,
feed supplement (rural backyard poultry birds become deficient in certain nutrients as
they scavenge on locally available material and need supplements) and marketing
back-up are absent in the present scheme.

SANKARA COLLEGE OF SCIENCE AND COMMERCE 3

INTRODUCTION CHAPTER 1

Thus, outreach to the poorest of the poor is still restricted as the inputs are not
being provided to the really remote areas and also the weaknesses on account of
absence of backward and forward linkages are not overcome. Another major reason
for sluggish development seems to be the concomitant R&D support from
Agricultural Universities/ Veterinary colleges not being adequate in linking up with
extension agencies to provide suitable technical back up at farmers’ doorsteps. The
extension support is missing. The scheme envisaged giving day old chicks to farmers
with the intention that there will be a close attachment of the farmer during the
growing stages to take care of the chicks, but lack of amenities (for brooding, suitable
night shelters etc.) in primarily cold and rainy regions result in high mortality.

Keeping in mind the limitations of the various ongoing schemes and taking into
account the need to have a deeper insight into the requirements of the rural poultry
sector with focus aimed at the poorest of the poor, a “Workshop on rural poultry :
What has been done and what needs to be done” was organized by the Department of
Animal Husbandry & Dairying on 24.05.2004. Representatives of State
Governments, Other Departments/Ministries/Agencies and eminent scientists from
Universities, Cooperative sector, Poultry Corporations, Central Poultry Development
Organizations, international organizations (FAO & Swiss Development Corporation)
and also private organizations attended the workshop. Various rural /family poultry
models like Bangladesh models (BRAC & Proshika), Cuban model , Mozambique
model etc. were studied and deliberated upon. It was seen that those countries had
adopted a mother unit- cluster approach as per their needs including health service
delivery and marketing. Brainstorming was done in the Workshop to arrive at a
suitable and flexible model for India to suit its various agro-climatic regions and
socio-cultural conditions.

Keeping the above points in mind it is now proposed that we may have a more
holistic approach as follows:

SANKARA COLLEGE OF SCIENCE AND COMMERCE 4

INTRODUCTION CHAPTER 1

(1) Rural production & Social organization: The centrally sponsored scheme
“Assistance to State Poultry Farms” was a step towards boosting rural poultry
production but with some limitations. The pattern envisaged now will also cater to
intermediate rungs of poultry farmers who will rear the chicks in so-called mother
units and also help in providing the backyard poultry rearers with 4-8 week old reared
chicks so as to minimize the otherwise high chick mortality. The training will be more
intensive and services will be provided at their doorsteps. The formation of self-help
groups will foster community development, gender empowerment and promote the
concept of saving money amongst the poor to build self-confidence and social
security in the long run.

(2) Backward and forward linkages: The required minimum infrastructure, inputs,
feed, health service dissemination etc. as backward linkage and marketing of egg,
meat, poultry products’ as forward linkage have to be provided by a resource agency
or link agency. Preferably, these units should concentrate on inputs and services
including procurement, rather than production itself. The failure of most of the
poultry corporations/federations has been generally attributed to their giving more
attention towards production and less towards marketing.

(3)Convergence of Poultry activities: While reviewing the work done so far and the
roles of various other departments/ agencies in the poultry sector, it was seen that
there are many development programs for rural farmers, women, tribal and other
weaker sections of the society wherein poultry keeping is also one of the components.
NABARD and NCDC are also re-financing many poultry projects and , though lately
the projects try to incorporate all major inputs and services like feed, health care,
training etc., subsequent follow-up and constant interaction and updating are mostly
lacking. Further, the programs implemented by different agencies are not
complementing each other and have over-lapping objectives at times. Therefore, there
is a clear need to dovetail and coordinate other poultry development projects to work
towards a common goal of strengthening all the spheres of backward and forward

SANKARA COLLEGE OF SCIENCE AND COMMERCE 5

INTRODUCTION CHAPTER 1

linkages and Research and Development associated with this sector. The present
proposal envisages linkages with other development agencies and programs through
concatenating networks between agencies / programs and research institutes, State
Agriculture Institutions/ other ICAR Institutions etc. This will not only help steering
the course of the project for rapid and efficient implementation but also offer a
platform for trouble-shooting and problem management together..

Institutional Set Up Proposed

The organizational structure for the new initiative is envisaged as follows:

(i) Central Project Monitoring Unit (CPMU) & Project Steering Committee
(PSC): Implementation of the project nationally is proposed to be spearheaded,
coordinated and monitored by a CPMU with a core staff of specialized and
professional personnel. The proposed scheme is meant to be flexible so that each
State / UT is able to participate and formulate a proposal suited to local situations.
States and UTs participating in the Project will receive assistance in the form of grant-
in -aid. Implementation of the scheme would entail on the states decisions on a
number of policy issues, a closer study of the breeding, health and management of
poultry in the states, identification of major players and developing synergies among
them etc. Each state would, therefore, go through a critical phase of appraisal and
preparation before implementing the scheme and a major thrust is required to ensure
that this phase takes as minimum time as possible so that the scheme is launched
without much delay. The CPMU will review and monitor the scheme once it is
implemented. The work of CPMU and the implementation of the scheme will be
reviewed by a multi-departmental and inter-ministerial Project Steering Committee
under the chairpersonship of Secretary, Animal Husbandry, and Government of India.

SANKARA COLLEGE OF SCIENCE AND COMMERCE 6

INTRODUCTION CHAPTER 1

(ii) State Implementing Agencies: To avoid existing hurdles and delays at the State
Government level in transfer of funds and impart greater cohesion & professionalism,
it is necessary that the functions may be carried out by an autonomous state
implementing agency with a dedicated work force. An existing Poultry Corporation/
Federation or similar agency in the State may be nominated as SIA. If no such agency
exists, a new state level autonomous body may be set up. Care will be taken to ensure
that a sick organization with liabilities is not nominated for the purpose. It may be
necessary that to ensure smooth and continuous production and supply, the breeding
and multiplication farms, if required could be handed over to SIAs either by transfer
or through a suitable lease agreement. The SIA will receive the project grants directly
from the GOI and channelize them to other participating agencies including
Directorate of Animal Husbandry and State Agricultural/ Veterinary Universities/
ICAR institutes etc. Developing synergies among major players in the State will be
the responsibility of SIA. The SIA will charge for the goods and services provided by
it in order to remain economically viable. The goods and services provided by SIA in
turn would conform to the policy on poultry development of the State. This
arrangement is likely to insulate the production and marketing network from
budgetary fluctuations in the State and foster professionalism, efficiency and
autonomy where it is required most.

(iii) Involvement of NGOs :. The facilitator may or may not be an official. In some
cases, NGOs can not only work as the facilitator but also help in training and capacity
building of facilitators. Such sensitive support mechanisms in the shape of NGOs or
Community Based Organisations (CBOs) or network of community coordinators /
animators or a team of dedicated functionaries of the Government who are fully
engaged in the task of initiating and sustaining the group development process should
be selected to manage the CRUs and also in the training teams. The coordinators /
animators could be from the community or from outside the area. They could be
leaders / members of SHGs, or persons having experience or training in the field of
community organisation and social mobilization. The selection of Facilitator /
Community Coordinator and their training and capacity building for involvement in

SANKARA COLLEGE OF SCIENCE AND COMMERCE 7

INTRODUCTION CHAPTER 1

formation, development and training of SHGs is critical for the success of the
Programme. The SIA may therefore select suitable organisations/societies/individuals
as facilitators/community coordinators in the Programme based on their past
experience in SHG formation, community organisation or any other similar work
involving participatory approach, communication skill, ability to stay with the people
in the rural area etc. They will have to stay for a period of 2-3 years with the Group to
ensure continuity as well as to enable the Groups to mature into a self managed
people’s organisation. The SIAs may organize training and exposure programmes for
the facilitators and should interact with them regularly to get feed-back about groups.

(iv) Formation strengthening of SHGs: The project will focus on organization of

the poor at grassroots level through a process of social mobilization for poverty
eradication through poultry activity. The SHG (self-help group) approach will be
giving various advantages of binding each other and common arrangements for
getting chicks, feed, deworming, disease control, marketing of eggs and culled birds.
The approach to organize the poor stems from the conviction that there is a
tremendous potential within the poor to help themselves and that the potential can be
harnessed by organizing them. Social mobilization enables the poor build their own
organizations (SHGs) in which they participate fully and directly and take decisions
on all issues concerning poverty eradication. Simultaneously, SHGs have the
advantage that they can ensure assistance – be it in terms of credit or technology or
market guidance etc. – reaches the poor faster and more effectively.

(v) Convergence & Synergy: State Agriculture Institutes/ other ICAR Institutes etc.
This will not only help steer the course of the project for rapid and efficient
implementation but also offer a platform for trouble-shooting and problem
management together. Among the relevant schemes assisting poultry activities are
Swarnjayanti Gram Swarozgar Yojana (SGSY) of Ministry of Rural Development and
Support to Training and Employment Program for Women (STEP) Scheme of
Department of Women & Child Development etc. These schemes have their own
format and a few States are assisted under the same. However, these are like umbrella

SANKARA COLLEGE OF SCIENCE AND COMMERCE 8

INTRODUCTION CHAPTER 1

schemes supporting range of projects from different sectors like agriculture,

horticulture, animal husbandry etc. and the outflow and investment for poultry per se
is very nominal. Under SGSY, for example, Assam, Uttaranchal and Jammu &
Kashmir have been assisted since the inception of the scheme in 1999 to the tune of
around Rs. 24.5 crores central share compared to total central share of Rs. 808.68
crores, i.e. merely 3%. Thus the coverage for poultry is limited under these schemes.

3) Department of Animal Husbandry & Dairying being the nodal agency for poultry
activity may be better able to provide a nucleus for the proposed schemes and
encourage the State Implementing Agencies to directly access the funds from the
other schemes being implemented by the above agencies, like SGSY(Ministry of
Rural Development) as per their requirement. The new project is also envisaged to be
a demand-driven pool of funds and separate state-wise allocation is not proposed so
that funds may be drawn as per the requirement, capacity and capability of each
individual State Implementing Agencies. This will help complement the other
schemes instead of overlapping their components. Members from the above
Departments/ agencies will also be a part of the Project Steering Committee so as to
coordinate their activities in tandem with the State Implementing Agency’s action
plan.

Major components of the scheme

The envisaged scheme will have the following major components :

(i) Production Inputs

a) Germplasm: ICAR, Central Poultry Development Organization and wherever

possible State Poultry Farms will ensure availability of quality chicks suitable for
rural poultry

SANKARA COLLEGE OF SCIENCE AND COMMERCE 9

INTRODUCTION CHAPTER 1

b) Feed & Feed ingredients: The minimal feed requirement (as a supplement to
scavenging) may be assessed and accessibility to important ingredients may be
ensured in consultation with Agriculture & Cooperation and Food & Civil Supplies
Departments. Quality assurance may be done by ICAR & CPDOs.

c) Vaccines/ medicines: State Veterinary biological & ICAR will ensure availability
of vaccines/ medicines etc.

Technological aspects of these input deliveries like cold-chain etc. may be ensured by
CPDOs, Ministry of Food Processing Industries etc.

(ii) Infrastructure development: The major infrastructure development involved is

strengthening of existing State Government farms to make available chicks, quality
feed, and healthcare under a single window approach. The Department of Animal
Husbandry & Dairying is already implementing a Centrally Sponsored Scheme:
“Assistance To State Poultry Farms” which is launched during the 10th Plan in all the
States/ UTs of the country. The pattern of assistance is 100% in the case of North
Eastern States including Sikkim whereas it is 80:20 in respect of other States between
Center and State respectively at the rate of maximum Rs. 85.00 lakhs for each farm.
In the existing premises of the State poultry farms promotion of guinea fowl, quail,
turkey can also be taken up as a new activity. One time assistance is provided to
suitably strengthen the farms in terms of hatching, brooding and rearing of the birds
with provision for feed mill and their quality monitoring and in-house disease
diagnostic facilities. These farms maintain the parent stock of low input technology
birds duly identified by this department in consultation with ICAR and State
Government. Necessary in-built provision has been made in the proposal for
revolving fund for purchase of replacement breeding stock, feed ingredients,
transportation, medicines and vaccines etc. The amount so spent has to be recouped
from the sale proceeds of eggs, chicks and culled birds etc. and can be in turn used for
the farm year after year making it a financially self-sufficient unit. While this scheme
will be continued, selection of State Farms for assistance under this and the extent of

SANKARA COLLEGE OF SCIENCE AND COMMERCE 10

INTRODUCTION CHAPTER 1

assistance extended will be decided so as to ensure the successful implementation of

the new scheme. So also the existing Central Sector scheme, “Central Poultry
Development Organizations”, whose mandate is already oriented towards rural
poultry development, will give the major technical backstopping to this scheme.

(iii) Training
The members of the district/ block extension teams may be trained for selection and
further training of poultry link workers and beneficiaries for SHG formation.
Beneficiaries training in poultry rearing and associated activities will be provided by
the CPDOs and State Farms.

(iv) Marketing:
The State Implementing Agencies would ensure the marketing of surplus produce
mainly through the mother units.

SANKARA COLLEGE OF SCIENCE AND COMMERCE 11

INTRODUCTION CHAPTER 1

Company Profile

Mr.R. Lakshmanan way back in 1988 with the inspiration and encouragement from
his beloved father Mr. K.Ramasamy, an employee of the Animal Husbandry
Development, Tamilnadu started a small poultry farm as a means of self
employement. There are no parallels to what this dynamic hardworking man,
dedicated to the poultry industry could achieve in the following years due to his
commitments to quality and leadership. This firm was established during the year
1988 to cater to the needs of the domestic market.

Pappampatti, the native village of Mr. R. Lakshmanan is a dry and arid area where
there is little cultivation and the people were really struggling to make both ends
meet. Therefore, giving gainful employment to the local villagers was a primary
concern of the managing director when he thought of expanding the activities.

MILESTONES

1993 Poultry integration was started and rural farmers were given all inputs for
rearing broiler birds were brought back and marketed. First hatchery
started operation first feed mill started operation with a capacity of 5000
M.T.’S per month.
1997.Second hatchery started operation
2000.Second feed mill started operation with capacity of 5000 M.T.’S per
month.
2001.Third hatchery started operation at Velanthavalam, Palakkad.
2004.A modern automatic feed plant with pelletiser, crumblier, with an improved
compactor was commissioned. Batching is fully computerized to avoid human
errors.
2006. A second line was added to the feed plant to meet the increased demand.
2007.Cattle feed production and marketing.

SANKARA COLLEGE OF SCIENCE AND COMMERCE 12

INTRODUCTION CHAPTER 1

As second to better environment our organisation has commissioned one wind mill
every year and now there are 8 large wind mills with capacity of 4.75M.V.

The company is having its own hatchery with the production capacity of
750000 birds per week to meet their own production of broiler birds. It is also
having its own feed mill for manufacturing of feed for its own requirements;
presently the company has developed more then 700 farms in Coimbatore district.
The company has selected the farmers those who are having their own farm building,
having all infrastructure facilities to grow the birds and supply the birds, feeds,
medicine etc, to the selected farms. The farmer’s duty is to only grow the birds and
supply it to the company after 7 weeks from the date of placement of chicks. In turn
the farmers will get growing changes for the total delivery weight in kilos. The rate
will be fixed by the management, based on their performance. The company has also
two sophisticated advanced feed mills in 25 acres land at pappampatti for the entire
operation by producing 400tons per eight hours.

The Company is having a separate marketing department. Presently they have

marketing in Tamilnadu and Kerala. Our supply is 700000 birds per week.
Company has 40 vehicles to supply the birds.

HISTORY:

Established in the year 1988 in a small parent farm of 15000 parent birds, the group
has in leaps and bounds to reach this position of eminence in a short period. The
vision of the promoters, their untiring efforts to bring in scientific farming practices
and innovative production capabilities have contributed largely to their stature as a
leading player in the field.

SANKARA COLLEGE OF SCIENCE AND COMMERCE 13

INTRODUCTION CHAPTER 1

Over the years, the group has also brought in support system to ensure complete
control over all product parameters. These include over all product parameters. These
include everything right from the formulation of poultry feeds to poultry medicines
and vaccines.

PROCESS
Shanthi poultry parent farms are multi location and can house over four lakes parent
birds. Day old chicks are procured from venco research and breeding farms. Pune. At
the layer stage the eggs are collected from parent farms periodically and stored to
pick good hatch able eggs. The eggs are stored in cool rooms for a day before setting
at the incubators for the production of day old broiler chickens.

FEED
Poultry feeds are produced in house for both captive and market consumption. The
feed production facilities stand at around 1000 tons par with the best in the country.
The current setting up of the pallet feed mill with a production capacity of 90000tons
per annum ensures the availability of scientifically formulated feed for better quality.

FUTURE
Shanthi poultry focus on two levels.
• One brings in the benefits of integrated farming on a larger scale and the
production of finest broiler birds.
• Two the setting up of support system for both captive and market
consumption.
The future would see the stepping up of operation at both the levels to ensure
better service at all levels.

SANKARA COLLEGE OF SCIENCE AND COMMERCE 14

INTRODUCTION CHAPTER 1

HATCHERY

Eggs are stored in the incubators for 18 to 21 days. We’ve more then 120 most-
advanced state-of-the-art incubators with high hatching capacity of during each
production cycle. The hatched healthy chicks are selected for the future broiler
operations.
As one of the leading poultry group in integration farming in south India, Shanthi
Poultry Farm (P) Ltd., shares its growing and prosperity with more than 2000
satisfied farmers as business family members. Our farmers are properly trained in the
vital areas like sanitation, hygiene, medical care and medication, as well as the
carefully planned feeding systems and processes.

COMPLETE FEED

Shanthi Poultry Farm (P) Ltd is a pioneer and leader in the poultry industry with over
two decades of proven true as an integrator. The feed division with a production
capacity of 2,40,000metric tons per annum, set up house for both captive and market
consumption, with state-of-the-art facilities and laboratory that is on per the best in
the country.

Balanced Cattle Feed is a major input for successful dairy husbandry operation.
‘Shanthi ‘Cattle Feed, a perfectly compound feed is scientifically formulated and
production for increased yield of milk of high buffer fat patent. This, In turn, result in
better return for the farmer.

SANKARA COLLEGE OF SCIENCE AND COMMERCE 15

INTRODUCTION CHAPTER 1

THE PRODUCT QUALITY

Shanthi Cattle Feed dairy cows. The optimal blend, of protein, carbohydrates, fats,
vitamins and minerals the pellet compound cattle helps the farmer to increase milk
production and earn better returns.

High energy Shanthi Cattle Feed promotes higher milk yield and improved milk
quality.
High cereal diet boosts milk yield proteins.
High digestible fiber in the feed helps to boost buffer fat and combat fermentation
acidity.

Health Benefits

Chicken meat is widely believed to be easily digestible and considered to be one of the
most neutral foodstuffs. Chicken always stands for its versatility and is available to enjoy
throughout the year. Chicken can be cooked and consumed in many ways – boiled,
baked, grilled, fried.

Protein
Shanthi Chicken is a very good source of protein, providing 67%of the daily value for
protein. Protein helps build and repair the body tissues. It is also a good source of
selenium, niacin, vitamin B6 and phosphorous. The leanest part of the chicken is the
chicken breast, which has less than half the fat than any other portions of the meat.
Quality checks in feed

In the procurement space too, the company has ensured strict quality checks. "Feed cost
is 75 per cent of the production cost.

To enhance efficiency from procurement (be it agricultural or industrial goods) to

payment, the company automated the processes and they are centralised. It has nine
regional offices. The branch can only place an indent/request.

SANKARA COLLEGE OF SCIENCE AND COMMERCE 16

INTRODUCTION CHAPTER 1

Thereafter the system takes care, by planning and giving the feed requirement. The indent
is generated by the system and the feed despatched from the feed mill. From the bird
stock in the farm, the feed requirement is calculated."

Isn't the quality of the feed important? Of course. E Quality module prevents manual
intervention. All materials received are inspected and analysed in the lab. Only if passed
will the material is available for consumption.

Shanthi, meanwhile, has set for itself a vision of Rs800 crore by 2010 and
Mr.R. Lakshmanan is bent on achieving this.

Development of poultry industry horizontally develops the cultivation and demand of

maize and Soya, which are the main ingredients of poultry feed, directly contribute to the
development of agriculture. By creating large rural employment for the unskilled and
farming community, it was truly believe that the company has reached out to the
segments.

EDUCATION
In the Govt. Sector, the emphasis initially was on poultry training, breeding and health
care. Post graduate programmes in Poultry Science were started at many centers.
Programmes for selection and improvement of genetic stocks were taken up at Central
and State Govt. farms
Dr. B.V. Rao Institute of Poultry Training and Management has removed this lacuna to a
considerable extent.
State Agricultural Universities also offer various courses and training programmes are
organized. The technical team goes to seminars, conferences and training programs. In
technical team 15 people are there.

SANKARA COLLEGE OF SCIENCE AND COMMERCE 17

INTRODUCTION CHAPTER 1

Raising capital fund

The poultry farm area gets credit facilities from commercial and Regional rural bank, and
refinances facilities from NABARD.
In the Shanthi Poultry Farm doesn’t help on capital but it will help for
the equipment only. And support to the contracted farmers
capital funds to the banks to the following ways,
 Contracted farmers will be introduced in bank
 Already have farmer will introduce new farmer to help on our
investment activities to introduced bank.
 Available fund to gives bank to the framers with suitable security.
Shanthi farm will help on technical as well as equipment.
 Large numbers of rural youths are gainfully employed in poultry farms
financed by the Bank.
 The Bank has been instrumental in development of Integrated Poultry
projects involving rearing of grand parent/parent stock, production of
day old chicks, rearing of broiler birds in environmentally controlled
conditions, their scientific feeding and watering, ultra-modern veterinary
care and ultimately hygienic processing, packing and marketing of
various poultry products at affordable rates to the consumers
 The following banks are providing loans to the farmers:
• State bank of India
• Bank of Baroda
• Vijaya bank

The State Bank India has, of late, launched innovative schemes/card products with
defined objectives and refined methodology. The Philosophy, concepts and various issues
behind launch of our various new issues

SANKARA COLLEGE OF SCIENCE AND COMMERCE 18

INTRODUCTION CHAPTER 1

 Intensive financing in service area with package of services to optimally utilize

the resources at the command of the borrowers, particularly farmers and rural
entrepreneurs.
 To maintain continued relationship with our existing borrowers by providing
credit packages which take care of both the present as well as future aspirations of
the borrowers in pursuing their various productive ventures.
 Providing credit for the diversified needs of the borrower’s family for farm, off-
farm as well as consumption needs like housing, education, conveyance,
marriages, health etc;
 Recognising our good borrowers and rewarding their loyalty by offering
concessional rates of interest, better operational flexibility in the operation of their
accounts.
 Building up infrastructures at farm level through irrigation, farm mechanisation
and supportive allied activities like Dairy and Poultry farm etc.
 To promote growth of industries including small artisans, services and business
sectors. For borrowers with established credentials, the package of assistance is
redefined to take care of grow.
 In pursuit of achieving national objectives like better education and housing to all,
the products are re-modeled to make them attractive with longer gestation period
and lowered EMI at affordable interest cost.
 The process of submission of applications for loans, sanction, documentation and
disbursements has been further simplified.

Policy level support from the Government

The important support asked from time to time by the poultry industry includes:-
 providing status of ‘agriculture’ to ‘poultry’ in all states of India ( only a few
states have implemented ) ,
 Exemption from land ceiling act
 Enlarging scope of 'mid-day meal scheme for school children' to include eggs in
the diet of children.
 Grow more Maize campaign
SANKARA COLLEGE OF SCIENCE AND COMMERCE 19
INTRODUCTION CHAPTER 1

 Creation of National Poultry Development Board

 Full exemption on tax to the poultry farm
 freight subsidy and cash incentives for exports, more pressurized air cargo space ,
better handling facilities at airports and sea ports , subsidy on packaging material ,
lower interest rates and longer loan repayment terms by banks on infrastructure
facilities created for exports
 Reduction of import duties on certain essential feed ingredients, life-saving drugs
vaccines, equipment and machinery for poultry processing and rendering high-
tech laboratory equipment etc.

Assistance by APEDA for poultry products exports from India:

Agricultural and Processed Food Export Development Authority (APEDA) is

promoting agro-exports since 1986. Financial assistance is available to exporters,
growers, trade associations, Government agencies etc.

For poultry exports, following incentive schemes are available:-

 Feasibility studies, surveys, consultancy and data-base up gradation.

 Infrastructure development.
 Export promotion and market development.
 Full exemption on tax to the poultry farm.
 Packaging development.
 Assistance to promote quality and control of Quality.
 Up gradation of meat plants.
 Organization building and HRD.

SANKARA COLLEGE OF SCIENCE AND COMMERCE 20

INTRODUCTION CHAPTER 1

Technical knowledge
 Shanthi poultry farm has tie-up with the (VH) farms and they have Research
and Development Center in Pune.
 Cobb parent chicken tie up their and also they will be guide for new innovations.
 They have feed mills striving for continuous improvement in quality.
• Poultry Feed
• Cattle Feed
 In the feed continues improvement on the basis of minerals, proteins on the basis
of climate.
 The Industry is proud of its excellent support sectors namely, Feed,
Pharmaceuticals, Equipment, etc. The breeding sector, which lately achieved self-
sufficiency, is now even entering the Export world with parent hatching
eggs/chicks to the continue improvement.
 Automatic feed Pallet own way they will produced.

SANKARA COLLEGE OF SCIENCE AND COMMERCE 21

INTRODUCTION CHAPTER 1

SCOPE OF THE STUDY

Cost refers to “the amount of expenditure (actual or notional) incurred on or attributable

to a given thing”.
• Determination of cost-volume –profit relationship.
• Making or buying from outside suppliers.
• Continuing with the existing plant and machinery or replacing them by improved
and economic ones.

The scope of the study is to analyze the cost control position of the concern. Mainly to
focus the manufacturing cost as well as which way the company has increase profitability
position and study the cost pattern of the concern and based on the findings give useful
suggestion to improve the margin of the product.

SANKARA COLLEGE OF SCIENCE AND COMMERCE 22

INTRODUCTION CHAPTER 1

OBJECTIVEs OF THE STUDY

Primary objective

The primary objective of the present study is to analyze the cost pattern in Shanthi

Poultry Firm (P) Ltd.

Secondary objective

• To analyze the warehouse cost and cost benefit of establishing the warehouse.

• To analyze wind power cost and cost benefit of establishing wind mill for power

generation.

• To analyze the capacity of utilization in the year of 2006-2007

• To identify the incremental cost and the cost sheet.

• To know the information about activity based cost.

SANKARA COLLEGE OF SCIENCE AND COMMERCE 23

INTRODUCTION CHAPTER 1

LIMITATIONS OF THE STUDY

In the present study the researcher has faced the following limitations.

 The figures are historical in nature and time value of

money is not considered.

 The overall performance of the concern cannot be ascertained with

financial analysis.

 Due to time factor the study has been restricted to a period of seven years.

SANKARA COLLEGE OF SCIENCE AND COMMERCE 24