INTRODUCTION
Eggs are known as the healthiest food in the world as they are one of the best sources of protein and nutrients. They also reduce many health risks and are useful for the growth and development of young children. Eggs help in improving eyesight and contain chlorine which is important in the development of brain tissue. The demand for eggs in the market is currently very high and is steadily increasing due to their wide variety of uses in products such as cakes and meat-pie, cosmetics like shampoo, conditioners, soaps, cholesterol, and face masks and is also used in textiles industry for glue and a cleaning agent for leather surfaces.
MARKET POTENTIAL
Within 25 years, egg production has gone up from 16 billion in 1986 to 114 billion in 2020. The market size is estimated to be around INR 340 billion in 2021 and is expected to grow annually by 9.10% (CAGR 2021-2026). India is the third-largest egg producer after China and the USA. Additionally, human nutritionists recommend 180 eggs per year, and growing demand requires more production of eggs and suppliers to distribute the eggs.
FUNDING SOURCE
Under the programs supported by the Development Alternatives Group, such enterprises have been financed by the National Rural Livelihoods Mission (NRLM) with an average loan size of INR 5000.
BUSINESS ECONOMICS
FIXED CAPITAL (One Time Expenditure)
| MACHINERY & EQUIPMENT | AMOUNT (in INR) |
| Rack (2 units @ INR 2,000) | 4000 |
| Table (@ INR 1,000) | 1000 |
| Chair (@ INR 300) | 300 |
| Egg Covering Cloth (@ INR 500) | 500 |
| TOTAL | 5,800 |
WORKING CAPITAL (for a 2-month cycle)
| RAW MATERIAL | AMOUNT (in INR) |
| Egg Crate (30 eggs in 1 crate) | 66,000 |
| STAFF AND LABOUR | AMOUNT (in INR) |
| Entrepreneur’s Salary (@ INR 10,000/month) | 20,000 |
| UTILITIES & OTHER EXPENSES | AMOUNT (in INR) |
| Electricity (50 units @ INR 7) | 350 |
| Rent (500 units @ INR 3500/month) | 7,000 |
| Transportation Cost | 8,000 |
| TOTAL | 1,01,350 |
FINANCIAL SUMMARY (Annual)
| FINANCIALS | AMOUNT (in INR) |
| Fixed Cost | 5,800 |
| Working Capital (for each cycle of 2 months duration) | 1,01,350 |
| Total Enterprise Set-Up Cost | 1,07,150 |
| Revenue (per annum) | 6,48,000 |
| Total Expenditure (annual working capital) | 6,08,100 |
| Enterprise Profit (per annum) | 39,900 |
| Payback Period (in months) | 2 |
BASIC ASSUMPTIONS
- Working days: 26 days per month (8 hours shift)
- Each cycle consists of 2 months; 6 cycles in a year
- Average revenue: INR 1,08,000/cycle
| Particulars | Quantity | Selling Price/Item (in INR) | Amount (in INR) |
| Egg | 12000 | 9 | 1,08,000 |
Note: All figures mentioned are indicative and for reference purpose only. Development Alternatives Group bears no liability for accuracy. For any further information, please contact Development Alternatives on +91-11-2654-4100 or +91-11-2654-4200.
Star Entrepreneur
Abhishek, from Bhadohi, Uttar Pradesh, started with a small food stall in 2017. But, due to low margins in the business, he started looking for other profitable alternatives and set up an egg wholesale unit in his village. His enterprise made him:
- Earn a daily income of INR 1,500
- Hire one of his family members
- Become a distributor for 6 other micro entrepreneurs in his village