Pre-Feasibility Study Prime Ministers Small Business Loan Scheme

(Camel Farm- 11 Animals)

Small and Medium Enterprises Development Authority Ministry of Industries & Production
Government of Pakistan
www.smeda.org.pk
HEAD OFFICE
4th Floor, Building No. 3, Aiwan e Iqbal, Egerton Road, Lahore Tel 92 42 111 111 456, Fax 92 42 36304926-7 helpdesk@smeda.org.pk REGIONAL OFFICE PUNJAB 3rd Floor, Building No. 3, Aiwan e Iqbal, Egerton Road Lahore, Tel: (042) 111-111-456 Fax: (042)6304926-7 helpdesk.punjab@smeda.org.pk REGIONAL OFFICE SINDH 5TH Floor, Bahria Complex II, M.T. Khan Road, Karachi. Tel: (021) 111-111-456 Fax: (021) 5610572 helpdesk-khi@smeda.org.pk REGIONAL OFFICE KPK Ground Floor State Life Building The Mall, Peshawar. Tel: (091) 9213046-47 Fax: (091) 286908 helpdesk-pew@smeda.org.pk REGIONAL OFFICE BALOCHISTAN Bungalow No. 15-A Chaman Housing Scheme Airport Road, Quetta. Tel: (081) 831623, 831702 Fax: (081) 831922 helpdesk-qta@smeda.org.pk

September 2013

Pre-Feasibility Study

Camel Farm

Table of Contents
1 2 3 4 5 6 7 8 9 10 11 DISCLAIMER ................................................................................................................ 3 PURPOSE OF THE DOCUMENT ................................................................................. 4 INTRODUCTION TO SMEDA ....................................................................................... 4 INTRODUCTION TO SCHEME ..................................................................................... 5 EXECUTIVE SUMMARY ............................................................................................... 5 BRIEF DESCRITION OF PROJECT & PRODUCT ....................................................... 5 CRITICAL FACTORS .................................................................................................... 6 INSTALLED AND OPERATIONAL CAPACITIES .......................................................... 6 GEOGRAPHICAL POTENTIAL FOR INVESTMENT ..................................................... 6 POTENTIAL TARGET MARKET................................................................................ 6 PROJECT COST SUMMARY .................................................................................... 7 Project Economics .............................................................................................. 7 Project Financing ................................................................................................ 7 Project Cost ........................................................................................................ 7 Space Requirement ............................................................................................ 8 Machinery and Equipment .................................................................................. 8 Office Equipment ................................................................................................ 9 Raw Material Requirements................................................................................ 9 Human Resource Requirement .......................................................................... 9 Revenue Generation........................................................................................... 9 Other Costs .......................................................................................................10

11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 12 13

Contact Details of Experts and Consultants ..............................................................10 Annexure ..................................................................................................................11 Income Statement .............................................................................................11 Balance Sheet ...................................................................................................12 Cash Flow Statement ........................................................................................13 Useful Project Management Tips .......................................................................14 Useful Links .......................................................................................................15

13.1 13.2 13.3 13.4 13.5 14

Key Assumptions ......................................................................................................16

Pre-Feasibility Study

Camel Farm

DISCLAIMER

This information memorandum is to introduce the subject matter and provide a general idea and information on the said matter. Although, the material included in this document is based on data/information gathered from various reliable sources; however, it is based upon certain assumptions which may differ from case to case. The information has been provided on as is where is basis without any warranties or assertions as to the correctness or soundness thereof. Although, due care and diligence has been taken to compile this document, the contained information may vary due to any change in any of the concerned factors, and the actual results may differ substantially from the presented information. SMEDA, its employees or agents do not assume any liability for any financial or other loss resulting from this memorandum in consequence of undertaking this activity. The contained information does not preclude any further professional advice. The prospective user of this memorandum is encouraged to carry out additional diligence and gather any information which is necessary for making an informed decision, including taking professional advice from a qualified consultant/technical expert before taking any decision to act upon the information. For more information on services offered by SMEDA, please contact our website: www.smeda.org.pk

Pre-Feasibility Study

Camel Farm

PURPOSE OF THE DOCUMENT

The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs in project identification for investment. The project pre-feasibility may form the basis of an important investment decision and in order to serve this objective, the document/study covers various aspects of project concept development, start-up, and production, marketing, finance and business management. The purpose of this document is to facilitate potential investors Camel Farming by providing them with a general understanding of the business with the intention of supporting potential investors in crucial investment decisions. The need to come up with pre-feasibility reports for undocumented or minimally documented sectors attains greater imminence as the research that precedes such reports reveal certain thumb rules; best practices developed by existing enterprises by trial and error, and certain industrial norms that become a guiding source regarding various aspects of business set-up and its successful management. Apart from carefully studying the whole document one must consider critical aspects provided later on, which form basis of any Investment Decision. 3 INTRODUCTION TO SMEDA

The Small and Medium Enterprises Development Authority (SMEDA) was established in October 1998 with an objective to provide fresh impetus to the economy through development of Small and Medium Enterprises (SMEs). With a mission "to assist in employment generation and value addition to the national income, through development of the SME sector, by helping increase the number, scale and competitiveness of SMEs" , SMEDA has carried out sectoral research to identify policy, access to finance, business development services, strategic initiatives and institutional collaboration and networking initiatives. Preparation and dissemination of prefeasibility studies in key areas of investment has been a successful hallmark of SME facilitation by SMEDA. Concurrent to the prefeasibility studies, a broad spectrum of business development services is also offered to the SMEs by SMEDA. These services include identification of experts and consultants and delivery of need based capacity building programs of different types in addition to business guidance through help desk services.

Pre-Feasibility Study

Camel Farm

INTRODUCTION TO SCHEME

Prime Ministers Small Business Loans Scheme, for young entrepreneurs, with an allocated budget of Rs. 5.0 Billion for the year 2013-14, is designed to provide subsidised financing at 8% mark-up per annum for one hundred thousand (100,000) beneficiaries, through designated financial institutions, initially through National Bank of Pakistan (NBP) and First Women Bank Ltd. (FWBL). Small business loans with tenure upto 7 years, and a debt : equity of 90 : 10 will be disbursed to SME beneficiaries across Pakistan, covering; Punjab, Sindh, Khyber Pakhtunkhwah, Balochistan, Gilgit Baltistan, Azad Jammu & Kashmir and Federally Administered Tribal Areas (FATA). 5 EXECUTIVE SUMMARY

This particular Pre-feasibility is for setting up a Camel Farm. Camel is a source of milk and meat in rangelands of Balochistan, coastal areas and desert area of Cholistan. Moreover, Cholistan desert has long been famous for raising different breeds of livestock including camel and supplying excellent quality of livestock products, which contribute a significant share to national meat, milk and livestock byproducts production. The camel milk is as nutritious as cow milk having vitamin C content level three times higher and also considered to be iron rich. Similarly, its meat contains higher polyunsaturated fatty acid as compared to beef. Therefore, the nutritious value that it carries for humans, particularly the inhabitants of arid desert areas, creates an opportunity for establishing a camel farm. The total project cost for setting up a Camel Farm is estimated at Rs. 2.03 million out of which capital cost is Rs. 1.80 million and working capital Rs. 0.23 million. The project is proposed to be financed through 90% debt and 10% equity. The project NPV is around Rs. 2.69 million, with an IRR of 35% and a payback period of 4.03 years. The project can be set up in peri-urban areas of Southern Punjab (Bahawalpur, Rahim Yar Khan, Cholistan) and desert areas of Sindh and Balochistan. A breeding herd of 11 camels would be purchased from local animal market. The project will employ 2 workers. The total herd milk production in first year would be 14,490 litres at 70% herd fertility capacity. The male calves would be sold in the market after 2 years. 6 BRIEF DESCRITION OF PROJECT & PRODUCT

This project is about setting up a Camel farm. The camels would be purchased from local livestock market and raised in conventional farming system. The project can be started in a rented space in desert areas with harsh conditions.

Pre-Feasibility Study

Camel Farm

The camels would reared for production both milk and meat. Milk of the camel cow would be sold directly to consumers or processing companies. In addition, the farm would raise camels for sacrificial and routine meat supply purposes. Camel meat is relatively high in polyunsaturated fatty acid in comparison to beef. 7 CRITICAL FACTORS The project concept is based on availability of dry rangeland allowing free grazing particularly of non-lactating animals. Therefore, selection of location keeping in view the proximity of such free grazing area is imperative. Background knowledge and experience of entrepreneur in this field for selection of suitable breed and optimal sourcing of animals. Implementation of good husbandry practices to ensure animal health and its performance. Efficient marketing of the project, and bulk supply to wholesalers. INSTALLED AND OPERATIONAL CAPACITIES

A breeding herd of 11 camels, (1 male and 10 females) would be nurtured for milk and meat production. It is assumed that 70% of the camel cows in the parent herd are pregnant and would give birth to 7 calves every 2 years. The probability of male/female progeny is 50:50. The male camel calves are sold after being raised for two years. The female calves would be added to the breeding herd and would reproduce after 5 years and add to the milk production. Each Camel cow would be produce approximately 4,500 litres of milk in one lactation period. Total milk production for the first year of operations is estimated to be 14,490 liters. 9 GEOGRAPHICAL POTENTIAL FOR INVESTMENT

The proposed project can be set up in rangelands of Balochistan, coastal areas and desert area of Thar, Cholistan, Thal and Tharparker. The project can also be established in peri-urban vicinities of Southern Punjab region particularly Layyah and Bhakkar. 10 POTENTIAL TARGET MARKET The marketing of camel milk and meat follows the traditional channels of distribution. The prospective target market for its products is bigger cities like Lahore, Faisalabad, Multan, Bahawalpur, Rahim Yar khan and Karachi. The male progeny will be sold in various livestock market across Pakistan, particularly as a sacrificial animal. Additionally, the culled animals will be sold in the local butchers and meat traders.

Pre-Feasibility Study

Camel Farm

11 PROJECT COST SUMMARY A detailed financial model has been developed to analyze the commercial viability of Camel Farming project under the Prime Ministers Small Business Loan Scheme. Various cost and revenue related assumptions along with results of the analysis are outlined in this section. The projected Income Statement, Cash Flow Statement and Balance Sheet are attached as appendix 11.1 Project Economics A Camel Farm with a breeding herd of 11 camels would produce 14,490 litres of milk in year one. It is assumed that 3 male calves would ready in year 3 to be sold in the market. The following table shows internal rates of return and payback period. Table 1: Project Economics Description Internal Rate of Return (IRR) Payback Period (yrs) Net Present Value (NPV) Details 35% 4.03 2,693,309

Returns on the scheme and its profitability are highly dependent on the application of Good Livestock Husbandry Practices with appropriate feeding to maintain required body weight and milk production and regular disease management. 11.2 Project Financing Following table provides details of the equity required and variables related to bank loan; Project 2: Project Financing Description Details Total Equity (10%) Rs. 203,000 Bank Loan (90%.) Rs. 1,827,000 Markup to the Borrower (%age/annum) 8% Tenure of the Loan (Years) 7 11.3 Project Cost Following requirements have been identified for operations of the proposed Camel Farm. Table 3: Capital Investment for the Project Capital Investment Animals 7 Amount (Rs.) 1,680,000

Pre-Feasibility Study

Camel Farm

Farm Equipment Furniture & fixtures Pre-operating costs Total Capital Costs Working Capital Upfront building rent Cash Total Working Capital Total Investment 11.4 Space Requirement

50,000 10,000 60,000 1,800,000 Amount (Rs.) 180,000 50,000 230,000 2,030,000

The area has been calculated on the basis of conventional farm requirement such as sheds for breeding animals, calves and open paddock, labourers room, kitchen, washrooms and store. Following table shows calculations for project space requirement. Table 4: Space Requirement Space Requirement Shed for breeding animals Shed for other animals Open area for animals Labourers room Store Kitchen Washroom Total Infrastructure Space (Sq.Ft) 2,040 1,700 7,480 180 180 100 72 11,752

The shed may expanded in line with increase in number of animals. It is assumed that the shed would be acquired on monthly rent of Rs 15,000 per month. 11.5 Machinery and Equipment Following table provides list of machinery and equipment required for the proposed camel farm. Table 5: List of Machinery and Equipment Description Farm Equipment (milking buckets, feeding mangers etc.) Total Furniture cost Total Total Amount (Rs.) 50,000 10,000 60,000

For the camel farm, the basic equipments are milking buckets, feeding mangers, water troughs etc. 8

Pre-Feasibility Study

Camel Farm

11.6 Office Equipment No typical office equipment is required for this project. 11.7 Raw Material Requirements The raw materials in this project are the camels, animal feed and medications. Table 6: Cost of Material Female breeding animals Male breeding animal Feed Stuff for herd Vaccination/ Medication for herd Total Cost Unit Animal Animal Rate 150,000 180,000 Qty 10 1 Total Rs. 15,00,000 180,000 281,050 6,000 19,67,050

11.8 Human Resource Requirement Table 7: Human Resource Requirement Description Farm Supervisor Labour for animals Total No. 1 1 2 Monthly Salary (Rs.) 15,000 10,000 25,000

The table above provides details of human resource required to run project of camel farming. Salaries of all employees are estimated to increase at 10% annually. 11.9 Revenue Generation Table 8: Revenue Generation Unit Sale First Price Year Rs./Unit Producti on Saleable milk production Kg 85 14,490 (Litres) Total Revenue Description First Year Sales Revenue (Rs.)

1,231,650 1,231,650

Pre-Feasibility Study

Camel Farm

11.10 Other Costs An essential cost to be borne by the farm is electricity expense which is assumed to be only Rs. 5,000 per year. It is assumed that the communication expenses would be Rs. 3,600 per annum. The travelling expenses are Rs. 1,200 per annum. To cover unforeseen expenses, a miscellaneous expense of Rs 12,000 is estimated. The animal medication expenses are Rs. 6000 per month. 12 Contact Details of Experts and Consultants Name Prof. Dr. Muhammad Yunas Addresses Department of Livestock Management, Faculty of Animal Husbandry, University of Agriculture, Faisalabad, Pakistan Ph: +92-41-9200161-170 Dean, Lasbella University of Agriculture, Water and Marine Sciences, Balochistan / President, Society of Animal, Veterinary and Environmental Scientists (SAVES) Email: raziq2007@gmail.com Ph: +92-0853-610921

Dr. Raziq Kakar

10

Pre-Feasibility Study

Camel Farm

13 Annexure 13.1 Income Statement

Income Statement
Year 1 1,231,650 Year 2 1,354,815 Year 3 1,816,997 Year 4 1,639,326 Year 5 2,845,552 Year 6 2,695,269 Year 7 4,225,970 Year 8 4,122,414 Year 9 6,060,676 Year 10 6,242,313

Revenue Cost of sales Cost of Camel Purchase Feed expense Direct labor Total cost of sales Gross Profit General administration & selling expenses Administrative Salaries expense Electricity expense Water expense Travelling expense Communications expense (phone) Animal Medication Expense Amortization of pre-operating costs Miscellaneous expense 1 Subtotal Operating Income Other income (interest on cash) Earnings Before Interest & Taxes Interest expense on long term debt (Project Loan) Interest expense on long term debt (Working Capital Loan) Subtotal Earnings Before Tax Tax NET PROFIT/(LOSS) AFTER TAX

281,050 120,000 401,050 830,600

309,155 131,683 440,838 913,977

386,444 144,504 530,948 1,286,049

425,088 158,573 583,662 1,055,665

219,615 582,492 174,012 976,120 1,869,432

241,577 661,316 190,954 1,093,847 1,601,422

531,468 866,470 209,546 1,607,485 2,618,485

584,615 1,027,802 229,948 1,842,365 2,280,049

964,615 1,298,800 252,336 2,515,751 3,544,925

1,061,076 1,549,172 276,903 2,887,152 3,355,161

240,000 5,000 2,000 1,200 3,600 6,000 12,000 12,000 461,800 368,800 368,800 124,283 15,881 140,163 228,637 228,637

263,367 5,500 2,200 1,320 3,960 6,600 12,000 13,200 506,147 407,830 407,830 109,428 13,982 123,410 284,420 284,420

289,008 6,050 2,420 1,452 4,356 7,260 12,000 14,520 554,866 731,182 731,182 93,348 11,928 105,276 625,906 625,906

317,147 6,655 2,662 1,597 4,792 7,986 12,000 15,972 608,391 447,274 447,274 75,943 9,704 85,647 361,627 361,627

348,025 7,321 2,928 1,757 5,271 8,785 12,000 17,569 667,193 1,202,239 1,202,239 57,103 7,297 64,400 1,137,840 1,137,840

381,909 8,053 3,221 1,933 5,798 9,663 19,326 719,794 881,629 881,629 36,710 4,691 41,401 840,228 840,228

419,092 8,858 3,543 2,126 6,378 10,629 21,259 790,765 1,827,720 1,827,720 14,636 1,870 16,507 1,811,213 1,811,213

459,895 9,744 3,897 2,338 7,015 11,692 23,385 868,736 1,411,312 1,411,312 1,411,312 1,411,312

504,671 10,718 4,287 2,572 7,717 12,862 25,723 954,396 2,590,528 2,590,528 2,590,528 2,590,528

553,807 11,790 4,716 2,830 8,489 14,148 28,295 1,048,504 2,306,657 2,306,657 2,306,657 2,306,657

11

Pre-Feasibility Study

Camel Farm

13.2 Balance Sheet

Balance Sheet
Year 0 Assets Current assets Cash & Bank Total Current Assets Fixed assets Animals Farm equipment Furniture & fixtures Total Fixed Assets Intangible assets Pre-operation costs Total Intangible Assets TOTAL ASSETS Liabilities & Shareholders' Equity Current liabilities Total Current Liabilities Other liabilities Deferred tax Long term debt (Project Loan) Long term debt (Working Capital Loan) Total Long Term Liabilities Shareholders' equity Paid-up capital Retained earnings Total Equity TOTAL CAPITAL AND LIABILITIES 215,000 230,000 250,899 267,399 325,679 343,829 723,645 743,610 837,522 859,484 1,706,165 1,730,323 2,241,977 2,268,551 3,723,639 3,752,870 5,132,029 5,164,183 7,719,342 7,754,711 10,061,368 10,061,368 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

1,680,000 50,000 10,000 1,740,000

1,680,000 50,000 10,000 1,740,000

1,680,000 50,000 10,000 1,740,000

1,680,000 50,000 10,000 1,740,000

1,680,000 50,000 10,000 1,740,000

1,680,000 50,000 10,000 1,740,000

1,680,000 50,000 10,000 1,740,000

1,680,000 50,000 10,000 1,740,000

1,680,000 50,000 10,000 1,740,000

1,680,000 50,000 10,000 1,740,000

1,680,000 50,000 10,000 1,740,000

60,000 60,000 2,030,000

48,000 48,000 2,055,399

36,000 36,000 2,119,829

24,000 24,000 2,507,610

12,000 12,000 2,611,484

3,470,323

4,008,551

5,492,870

6,904,183

9,494,711

11,801,368

1,620,000 207,000 1,827,000

1,439,790 183,973 1,623,763

1,244,725 159,048 1,403,773

1,033,580 132,069 1,165,648

805,030 102,865 907,894

557,640 71,254 628,894

289,857 37,037 326,894

203,000 203,000 2,030,000

203,000 228,637 431,637 2,055,399

203,000 513,056 716,056 2,119,829

203,000 1,138,962 1,341,962 2,507,610

203,000 1,500,589 1,703,589 2,611,484

203,000 2,638,429 2,841,429 3,470,323

203,000 3,478,657 3,681,657 4,008,551

203,000 5,289,870 5,492,870 5,492,870

203,000 6,701,183 6,904,183 6,904,183

203,000 9,291,711 9,494,711 9,494,711

203,000 11,598,368 11,801,368 11,801,368

12

13.3 Cash Flow Statement

Statement Summaries
Cash Flow Statement
Year 0 Operating activities Net profit Add: depreciation expense amortization expense Deferred income tax Accounts receivable Finished good inventory Equipment inventory Raw material inventory Pre-paid building rent Pre-paid lease interest Advance insurance premium Accounts payable Other liabilities Cash provided by operations Financing activities Change in long term debt Change in short term debt Change in export re-finance facility Add: land lease expense Land lease payment Change in lease financing Issuance of shares Purchase of (treasury) shares Cash provided by / (used for) financing act Investing activities Capital expenditure Acquisitions Cash (used for) / provided by investing acti NET CASH Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Rs. in actuals Year 10

SMEDA

(15,000) (15,000)

228,637 12,000 (1,500) 239,137

284,420 12,000 (1,650) 294,770

625,906 12,000 (1,815) 636,091

361,627 12,000 (1,997) 371,631

1,137,840 12,000 (2,196) 1,147,643

840,228 (2,416) 837,812

1,811,213 (2,657) 1,808,556

1,411,312 (2,923) 1,408,389

2,590,528 (3,215) 2,587,313

2,306,657 35,369 2,342,026

1,827,000 203,000 2,030,000

(203,237) (203,237)

(219,990) (219,990)

(238,125) (238,125)

(257,754) (257,754)

(279,001) (279,001)

(302,000) (302,000)

(326,894) (326,894)

(1,800,000) (1,800,000) 215,000

35,899

74,779

397,966

113,877

868,643

535,812

1,481,662

1,408,389

2,587,313

2,342,026

13

Pre-Feasibility Study

Camel Farm

13.4 Useful Project Management Tips Technology List of Machinery & Equipment Required spare parts & consumables: Suppliers credit agreements and availability as per schedule of maintenance be ensured before start of operations Energy Requirement: Should not be overestimated or installed in excess and alternate source of energy for critical operations be arranged in advance Machinery Suppliers: Should be asked for training and after sales services under the contract with the machinery suppliers Quality Assurance Equipment & Standards: Whatever means required products quality standards need to be defined on the packaging and a system to check them instituted, this improves credibility

Marketing Product Development & Packaging: Expert's help may be engaged for product/service and packaging design & development Ads & P.O.S. Promotion: Business promotion and dissemination through banners and launch events is highly recommended. Product broachers from good quality service providers Sales & Distribution Network: agreements are required with. Expert's advise and distribution

Price - Bulk Discounts, Cost plus Introductory Discounts: Price should never be allowed to compromise quality. Price during introductory phase may be lower and used as promotional tool. Product cost estimates should be carefully documented before price setting. Government controlled prices shall be displayed.

Human Resources List of Human Resource Adequacy & Competencies: Skilled and experienced staff should be considered an investment even to the extent of offering share in business profit.

14

Pre-Feasibility Study

Camel Farm

Performance Based Remuneration: Attempt to manage human resource cost should be focused through performance measurement and performance based compensation. Training & Skill Development: Encouraging training and skill of self & employees through experts and exposure of best practices is route to success. Least cost options for Training and Skill Development (T&SD) may be linked with compensation benefits and awards.

13.5 Useful Links Prime Ministers Office, www.pmo.gov.pk Small and Medium Enterprise Development Authority, www.smeda.org.pk National Bank of Pakistan (NBP), www.nbp.com.pk First Women Bank Limited (FWBL), www.fwbl.com.pk Government of Pakistan, www.pakistan.gov.pk Ministry of Industries & Production, www.moip.gov.pk Ministry of Education, Training & Standards in Higher Education, http://moptt.gov.pk Government of Punjab, www.punjab.gov.pk Government of Sindh, www.sindh.gov.pk Government of Khyber Pakhtunkhwa, www.khyberpakhtunkhwa.gov.pk Government of Balochistan, www.balochistan.gov.pk Government of Gilgit Baltistan, www.gilgitbaltistan.gov.pk Government of Azad Jamu Kashmir, www.ajk.gov.pk Trade Development Authority of Pakistan (TDAP), www.tdap.gov.pk Security Commission of Pakistan (SECP), www.secp.gov.pk Federation of Pakistan Chambers of Commerce and Industry (FPCCI) www.fpcci.com.pk State Bank of Pakistan (SBP), www.sbp.org.pk

15

Pre-Feasibility Study

Camel Farm

14 Key Assumptions Table A: Revenue Calculation basis No. of Male camels in parent herd No. of Female camels in parent herd Calving interval (years) Fertility percentage in herd Mortality percentage in new born Mortality percentage in breeder Culling percentage in all herds Age of female camel at first calving (years) Male to female ratio in new born Gestation time period (days) Lactation Period (days) Milk production per animal per year (litres) Saleable Milk per animal per year (litres) Sales price per litre of milk (Rs.) Sales price of 2 year old male camels (Rs.) Sales price of female breeder camels for culling (Rs.) Sales price growth rate Cost of female breeders (Rs.) Cost of male breeders (Rs.) Cost of goods sold growth rate Per day feed cost for pregnant/lactating camels (Rs.) Per day feed cost for other animals (Rs.) Table B: Expense Assumptions COGS growth rate Operating costs growth rate Travelling expense Communication expenses Miscellaneous Expenses Machinery & Equipment depreciation rate Furniture & Fixtures depreciation rate Inflation rate Electricity growth rate Water price growth rate Wage growth rate 10% 5% Rs. 1200 per annum Rs. 3,600 per annum Rs. 6000 per annum 10% 10% 10% 10% 10% 10% 1 10 2 70% 2% 2% 3% 5 50:50 388 300 4,500 4,050 85 90,000 90,000 15% 150,000 180,000 10% 110 70

Table C: Economy Related Assumptions

16