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Tata Capital > Blog > Loan for Business > How to Start a Poultry Business in India?

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How to Start a Poultry Business in India?

How to Start a Poultry Business in India?

Poultry farming is the fastest-growing division of India's agribusiness sector. Rising government investments through the National Livestock Mission in hatching, rearing, processing and breeding are poised to boost growth further.

Poultry farming is no longer a backyard business as it was once considered but a competent techno-commercial venture. Hence, you need a solid blueprint before getting started. Read on to learn more about designing and implementing a business plan for poultry farming.

1. Decide on the type of poultry farm business and select the birds

Before drawing up a business plan for poultry farming, you must choose the sector to cater to like egg production, meat production, poultry feed production, egg and meat processing etc.

Next comes the selection of birds. Let us look closer at the available bird choices for poultry farming:

Broiler chickens: These are chickens with a high growth rate. They become whole birds in about 8 weeks (about 2 months) and can provide a high quantity of meat, ideal for a chicken production business plan.

Layer chickens: Layer chickens are a unique breed of hens and can produce over 250 eggs per year. You can also consider other birds such as goose, duck, peacock, quail, pigeon, and turkey for egg laying.

Roosters: Adult roosters guard the hens that lay eggs.

You can initially start with two or three birds and add more to your flock when the business grows.

2. Finalize location

Location is an important aspect of your business plan for poultry farming. Your poultry farm's location depends on the type and scale of it. Let us look at the several types of poultry farms in India based on land size:

1. Battery cage poultry farm: In this type of poultry farm, the birds are not allowed to run freely. The land requirement consequently is less. You can typically set up a battery cage farm on 6000 sq ft of land.

2. Free range poultry farm: Birds can roam free on this type of poultry farm. Hence, a larger land area of about 36000 sq ft is required.

3. Semi range poultry farm: In this type of poultry farm the birds are kept in coops and allowed a small space to roam around. The typical land size required is closer to a battery cage poultry farm.

4. Wild poultry farm: In this poultry farm, the birds are raised in a completely natural environment with no enclosures. The land requirement for this farm is the highest at around 45000 sq ft.

Apart from the type of poultry farm, you need to consider other factors as well to decide on location. These include proximity to the market and amenities like freshwater and preferably a pollution-free environment.

3. Identify your target audience

Next you need to identify the target audience of your business plan for poultry farming. You have three main target markets to choose from: individual customers, wholesalers, or retailers. You will need to conduct thorough market research to determine your target audience’s demand and purchase preferences.

Understanding the target audience is vital to designing a production and marketing strategy that effectively meets customers' needs.

4. Create a business plan

Now comes the blueprint of your business: the business plan. A concrete chicken farming business plan will guide you towards achieving your financial goals.

A chicken farming business plan will typically include:

Type of poultry farm

Type and quantity of birds

Equipment required

Process details for business activities such as breeding or egg production, etc.

Details of financial and human resources

Advertising and marketing strategy

Pending registration and licenses

Business goals for your business plan for poultry production

5. Decide on capital allocation

To decide on the funding requirement, you must first list the potential expenses for your chicken rearing business plan. A standard poultry farm will include land acquisition expenses, construction of coops, housing facilities for employees, equipment purchase, marketing, and daily working expenses.

Apart from these, do not forget some ongoing business expenses such as bird feed, medication, and labour. A comprehensive account of capital allocation will help you secure funding for your business smoothly.

6. Create a marketing and advertising strategy

A business plan for poultry production is incomplete without a proper marketing strategy. To increase visibility, you should consider advertising on all the major media outlets, such as social media, print, paper, and radio.

Additionally, you can create a website for your business as well as market your products on popular e-commerce websites. This will ensure a wider reach for your poultry business.

Your specific market strategy will be driven by your target audience. For example, if you are targeting youth who want farm-fresh eggs, make sure your marketing campaign prioritises this particular aspect of your poultry farm.

7. Complete FSSAI (Food Safety Standards Authority of India) registration and obtain relevant licenses

If your poultry farm business turnover is less than 12 Lakhs, you can get it registered with FSSAI, the food regulatory body of India. However, for a turnover greater than 12 Lakhs, you will need to obtain a state or national license. Additionally, you might consider applying for a poultry farming business loan to support your expansion.

Some other mandatory licenses required for your poultry farm business are:

A NOC (no objection certificate) from the village and municipality where your farm is located and from the pollution board

Permission from the electricity board to install a transformer for your chicken production business plan

License from the groundwater department

Registration of your poultry farm business (proprietary firm, partnership firm or company)

Final Thoughts

This is all about designing a successful chicken rearing business plan. Once you’ve made a concrete business plan, it’s time to address the challenge of funding. If you are considering a business loan for your venture, look no further than Tata Capital.

Tata Capital’s business loans are designed to help businesses grow and thrive. You can apply for a business loan at Tata Capital with minimum business loan documents required. Further, the competitive business loan interest rates offered by Tata Capital ensure that your profits go into growing your business and not high loan EMIs.

To know more, visit the Tata Capital website or download the Tata Capital App now!

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