INTRODUCTION

Dairy activities have traditionally been integral to India’s rural economy. The country is the
world’s largest producer of dairy products and also their largest consumer. Milk is one of the
main sources of proteins and calcium for a largely vegetarian population. In 1999, India became
the largest producer of milk primarily due to the efforts of the co-operative movement initiated
by the National Dairy Development Board(NDDB). It is a movement which started at Amul Dairy
in Gujarat, it is now done in 70000 villages in about 200 districts of India. Milk production is
very important to India, as it provides a livelihood for millions of Indian farmers and additional
income for a large number of rural families as well as a means for women to participate in the
economic activity in rural areas.
Dairy Industry- Demand Drivers in Bihar
1. Strong Recent and Projected GDP Growth Rates
2. Rising Middle Class and Urban Population
3. Large and Increasing Working Population
4. Changing Dietary Patterns
5. Milk is Considered a Perfect Health food
If the impediments in the way of growth and development are left unaddressed, India is likely
to face a serious supply - demand mismatch and it may gradually turn into a substantial
importer of milk and milk products.

Out of the 70000 villages, only 2500 use computers for processing milk, buying/selling
transactions in a transparent manner and exposes 500000 people daily to the benefits of IT.
The IIMA e-governance center helps the milk societies to keep a track of basic details of breed,
and a history of disease, inoculation and artificial insemination.
Keeping in view CSR budget possessed by the company, it is proposed that a co-operative
movement in the milk industry be implemented in various districts in the fast-developing state
of Bihar, taking inspiration from the immensely successful movement by Amul in Gujarat i.e.
setting up of milk cooperatives that are robotized, and innovation driven. The business
proposition is for the improvement of Dairy Information and Services Kiosk in different towns of
Bihar state. The examination demonstrates that advancement requires broad instructive
projects, which can be viably conveyed by means of country web booths, which as of now uses
2500 PCs in provincial areas for handling milk purchasing/offering exchanges in a
straightforward way and uncovered 5,00,000 individuals every day with the advent of IT. Reach
of Dairy Cooperative Network includes 177 milk unions, operates in over 346 districts, covers
around 1,28,799 village level societies and is owned by around 13.4 million farmer members of
which 3.7 million were women. The proposal presents the efforts of DSY Pvt Ltd. in designing
and implementing the DISK and Dairy Portal.

The Project would not only aid generation of employment but also spur
economic growth of the region.
Contact Details of Key people –

1. Dipanjan Basu – CSR Head

2. Aditya Narayan Sarkar – Project Manager
Contact details –
Mobile – 9867857698
e-mail – ansarkar@dsy.com
3. Somalika Roy – Technical Lead
Contact Details –
Mobile – 9995576453
e-mail – smroy@dsy.com
TEAM MEMBERS
1. Ashish Sen – Jehanabad District
2. Niharika Gupta – Lakhisarai District
3. Shasank Sharma – Arwal District
4. Kavita Iyer – Shekhpura District

RECIPIENT – Mr. K L Agarwal, MD, DSY Pvt Ltd

ACCESS TO DOCUMENT – RESTRICTED (CONFIDENTIAL)

Date of Proposal – 12/12/2017

Validity – 3 months
Estimated duration of Project – 3 years.
 BACKGROUND

According to Company’s act 2013, all companies are entitled to pay two percent of their net
profit in CSR activities. Corporate social responsibility is represented by the contributions
undertaken by companies to society through its business activities and its social investment.
This is also to connect the Concept of sustainable development to the company‘s level
.According to schedule VII one of the key aspects of Corporate Social Responsibility is
upliftment of villages. CSR can actually play an important role by developing villages and
providing the farmers a platform for growing and becoming good enough to compete with the
highly organized dairies. This will further be helpful for India to have a good position in the dairy
sector.
The evaluation of this CSR activity would be done by regular auditing and observing the
increase in the yield of milk. For example increasing automation rate, more milk production,
increase in literacy rate could be one of the factors over which this process can be evaluated.
Dairy enterprise accounts for nearly one fourth of the value of output from agricultural sector,
which is among the highest of all agricultural activities. It shows the importance of dairy
enterprise for the national economy. The livestock activities, among which dairy farming
predominates, employ about 8.5 million workers in the country.Milk and milk products have a
higher protein intake than non-vegetarian animal products which is very beneficial for all the
people.
The National Dairy Development Board (NDDB) started a movement in Amul Dairy in Gujarat
which is now replicated in 70,000 villages in about 200 districts of India. It deals with using
computer technology in all of the 70000 villages.
These systems introduced very satisfactory milk collection methods and facilitated immediate
payments to farmers based on the quality and quantity of milk delivered. The success of these
systems coupled with inexpensive connectivity opportunity offered by Internet, motivated the
CEG-IIMA to enhance the PC at the Automatic Milk Collection Systems (AMCS) into a Dairy
Information Services Kiosk (DISK) and offer an extensive knowledge and service delivery
mechanism through a Dairy Portal.
The DISK software provides many services, some of them are delivery of information related to
dairying, including best practices in breeding and rearing milch cattle, scheduling of
government and other private sector agency services, and collecting feedback on the quality of
service provided to the catchment area, Internet Banking Services and Automated Teller
Machines (ATMs), which will enable the milk societies to credit payments directly to sellers'
bank accounts and a means of communicating with farmers via the automatic printing process
of daily payment slips.
 STATEMENT OF NEED
Bihar is one of the India’s largest milk producing states, and accounts for 8.9 per cent of the
national only) and milk productivity (3.7 kg/day/milking animal) in Bihar is one of the lowest in
India (DAHD, GoI,
2008). The modern milk marketing chains, especially those involving milk co-operatives, have
emerged
significantly in the state. But, the traditional marketing continues to play an important role in
the milk supply chain in the state.
The Animal Husbandry report of the state of Bihar reflects how it has underutilized its ability to
produce milk. Despite the large population of Crossbred/Exotic cows, ,milk production is very
less due to low yield per animal.
The per capita availability of milk is Bihar is significantly less compared to other
states. A Column chart shows the difference between Bihar and other milk
producing states.

Though the number of organized DCS (Dairy Cooperative Society) are almost equal to the large
milk producing states, but the procurement and sale of milk is substantially less. Here rises the
need for the implementation of DISK. By leveraging technology, we could emulate the Gujarat
model and bring more prosperity to the marginalized farmer. The idea is to empower them,
especially women. Dissemination of information and right information on cattle feed would be
of huge relief. A table given below illustrates the need for implementing our project.
 The sector is plagued with various other impediments like shortage of fodder, its poor quality,
dismal transportation facilities and a poorly developed cold chain infrastructure. As a result, the
supply side lacks in elasticity that is expected of it.
On the demand side, the situation is buoyant. With the sustained growth of the Indian economy
and a consequent rise in the purchasing power during the last two decades, more and more
people today are able to afford milk and various other dairy products. This trend is expected to
continue with the sector experiencing a robust growth in demand in the short and medium run.
If the impediments in the way of growth and development are left unaddressed, India is likely
to face a serious supply - demand mismatch and it may gradually turn into a substantial
importer of milk and milk products.

Opportunities available on the demand side

The growth performance of the Bihar economy has been steady over the past one decade
registering an annual growth rate at 10.5 per cent between FY 2005-6 and 2014-15. Among
other salient features of Bihar's growth story, the per capita income has gone up by 40.6 per
cent in the last fiscal 2014-15 as against 37 per cent in 2012-13; while the agriculture and
animal husbandry, the bedrock of the state economy, has seen an increase of 6.02 per cent
during 2005-06 to 2014-15.
The growth rate of agriculture and animal husbandry sector at 6.02 per cent is of special
significance given that Bihar's 90 per cent population lives in rural areas and rely on this sector
for their livelihood, the economic survey said.

As many as five sectors - communications (25.38%); registered manufacturing (19.31%);

construction (16.58%); banking and insurance (17.70 %); and transport, storage and
communication (15.08%) - have registered an average annual growth rate of more than 15
per cent.

EDUCATION
Education is an equally important a component of economic development as others. Besides its
intrinsic value, education also helps people to acquire knowledge and skill, and enable them for
fruitful economic and social participation. With greater reliance on technology-intensive inputs
in manufacturing and production, the need for highly specialized skill and knowledge is always
high for spurring economic growth.
GROWTH IN THE BANKING AND FINANCIAL SERVICES
The easy accessibility of banks could be leveraged for easy availability of credit. The number of
banks has grown over the years, especially from year 2010 to 2015.

PROCEDURE

PROCESS OF DISK IMPLEMENTATION

Through the Dairy Kiosk farmers may place orders for a variety of goods and services offered by
different agencies in the co-operative sector, and seek information on a variety of subjects of
interest (e.g., best practices in breeding and rearing milch cattle, schedule of services provided
by the co-operative, government and other private sector agencies). The computer-printed
receipts that farmers receive each time they deliver milk provide an additional means for co-
ops to communicate with their farmers. For instance, if one or more of a farmer's milch cattle
requires an inoculation on a specific day (information provided by a veterinary service
database) this fact can be printed out as a reminder on the farmer's payment slip.
The Dairy Portal is designed to provide an interactive dairy information and education channel
to the members of the DCS (farmers) and others in the dairy sector. To a large extent, the
contents are created and the interaction is facilitated in the regional language as well as
English. A toggle button on the main page of the portal facilitates switching between these two
languages. The portal can be accessed through just an internet browser (other than operating
system and browser, no other software is required on the PC) by any authorized user on the
internet. The Dairy Portal has textual as well as multi-media content useful to the farmers,
extension workers, business executives and researchers dealing with the dairy sector.
The portal mainly offers services such as education, entertainment, discussion forum,
frequently asked questions, data transfers, application forms for submission to various
agencies, e-commerce, and e-banking. On the education front, the portal typically it holds the
data on best practices in breeding and rearing milch cattle, feeding and keeping animal healthy,
producing high quality milk, care to be taken in buying and selling the cattle, and several other
aspects to educate and advise the users. In addition, the portal gives hyper links to other rural
education websites. DISK database includes a complete history of all milch cattle owned by the
farmers. The basic details of breed and a history of disease, inoculations, artificial insemination
and pregnancy are maintained in the system. Longitudinal data on milk production by individual
farmers is also available in the database. Decision support systems have been developed to
forecast milk collection, and provide feedback to the farmers. Through the Dairy Kiosk farmers
may place orders for a variety of goods and services offered by different agencies in the co-
operative sector, and seek information on a variety of subjects of interest (e.g., best practices in
breeding and rearing milch cattle, schedule of services provided by the co-operative,
government and other private sector agencies). The computer-printed receipts that farmers
receive each time they deliver milk provide an additional means for co-ops to communicate
with their farmers. For instance, if one or more of a farmer's milch cattle requires an
inoculation on a specific day (information provided by a veterinary service database) this fact
can be printed out as a reminder on the farmer's payment slip.

Villages having good infrastructure will be taken preferably. In those villages identifying literate
farmers is essential as those farmers will be an influence for the other farmers. Our main
purpose is basically to double the milk production that is from 13m liters per day to
approximately 36m liters per day. To achieve this in a particular village, healthy, high yielding
cows will be identified and focused upon. Cows will be subjected to artificial insemination for
better breeds so as to produce good capacity of milk. Creation of online portals for info related
to dairying, including best practices in breeding and rearing milch cattle, scheduling of
government and other private sector agency services, and collecting feedback on the quality of
service provided to the catchment area
Various ATMs and banking services in the villages will be set up to enable the milk societies to
credit payments directly to seller’s bank account. Ways will be created for farmers to download
Government Forms, receive documents (from a Government site) and order supplies and
agricultural inputs from manufacturers.
A means of communicating with farmers via the automatic printing process of daily payment
slips
It is also necessary to educate the farmers as it will make them more knowledgeable and more
efficient.
All of this will be done in following ways:

 An extensive training program for the villagers has to be conducted so that they agree
on using this technology and also get comfortable with it.- 1 month

 The company would take initiatives and set up IT infrastructure- 2 months

 Organizations would also take special classes for the farmers to make the farmers aware
about the uses of internet. How internet will be beneficial for them here, it will also be
essential to convince the telephone operators to venture in the villages as they consider
it a big risk.

 Provisions would be made to bring good fodder for the animals so that the cattle
remains healthy.Special camps are to be setup for the regular health checkup of the
cows.Regular vaccination will also be provided.

EQUIPMENT AND FACILITIES

 Plastic ID card for identification number to the PC.
 Electronic Milk Tester
 Software
 Communication center offering services like email, fax and internet telephony
 Internet banking services, ATM
 Equipment needed for educational purpose

PERSONNEL
The functioning of DISK does not require any educational qualifications. The operators need to
have knowledge about computers and should be able to work efficiently with internet
connections. They should be good at communication so that they can teach basic computer
skills to the farmers. They should also be able to handle minor glitches in the functioning of the
collection centers. All operators and workers should be fully aware of the functioning of the
system, its advantages and disadvantages, if any, so as to explain the entire process to attract
more users and lure more investors. Persuasive people will be more successful in this case as
they will be able to convince and bring more farmers to get to know the technology and its
benefits and spread the word around.
The no of people required in each village of a district are :
 Company Officials: People should be there for the implementation of process. A team of
3 has to be sent to each village including Project Lead and 2 team members. Their main
job is to fix all the problems that comes in the way of implementation of this project.
 Local Villagers – From operators to workers will be localities. 10-12 people should be
well trained to handle the process.

PROJECT MANAGEMENT

Start
Task Date End Date Duration
14-Apr-
Gather Requirement 1-Apr-18 18 14
Permissions from
state government
departments of
Home, Information
& Public Relations
and Rural Works 15-Apr-
department 18 14-Jul-18 90
Contract
finalization with
the telecom
company 7-Jul-18 14-Jul-18 7
The survey done
by the telecom
company and our
company for entire 11-Jan-
state 15-Jul-18 19 180
Work started (for
two societies
initially) 1-Jan-19 1-Feb-19 31
Intermediaries
(office bearers) are 11-Jan- 17-Jan-
to be training 19 19 6
Farmers education
about the Internet,
IT and about
kiosks 1-Jan-19 1-Apr-19 90
 Chart Title
22-Sep-1731-Dec-1710-Apr-18 19-Jul-18 27-Oct-18 4-Feb-19 15-May-19

Gather Requirement

Permissions from state government departments of…

Contract finalization with the telecom company

The survey done by the telecom company and our…

Work started (for two societies initially)

Intermediaries (office bearers) are to be training

Farmers education about the Internet, IT and about…

Project Challenges
During the implementation of the projects in the villages, the following problems can be
encountered by the team.
 Poor penetration of internet in villages- This is one of the major problems that is faced in
Indian villages. People do not get a chance to access high speed internet, which generally
hinders the development.
 Marginal Land Holding of farmers and pasture land is very less.(refer to exhibit)
  Cost: Many villages are being taken into consideration for the development. If proper
support isn’t provided by the company, the cost can definitely be a big factor causing
barrier in the implementation of the project in the selected villages.

 Time: Development for so many village will require a long-time span. It will be difficult for
the unorganized dairies to compete with the organized dairies unless the work of
development is completed.

 Road transport System is still not the best among Indian states.(refer to exhibit)

 Resistance to change: Farmers in the rural area are generally stubborn and orthodox in
nature, it is a big challenge to get them acquainted with the latest technology.

 Reluctance of telecom operators to get involves in rural operations-Telecommunication

investors, financial institutions that provide telecom loans, urban telecom operators, and
telecom equipment vendors are generally reluctant to get involved in rural operations
because they perceive telecom ventures in rural areas as high risk.

Budget Estimates
The budget of the project is initially to be calculated on an hourly basis. The rate we offer from
our side to operator is Rs 50 per man-hour and to worker is Rs 25 per man-hour. So, if we estimate
we need 2 operators per centre and 2 workers for 10 hours each day, and then:
Cost of 1 operator & Worker = Rs 50 *10*1= Rs 500 && Rs 25*10*1= Rs 250
Cost per centre per day = Rs 500* 2+ Rs 250*2= Rs 1500
Cost per centre per month = Rs 1500*30= Rs 45000

Set-Up Cost
PROJECT Units Rate (INR / unit) Amount (INR)
Field Work 4,000 hrs. 50 2,00,000
Kiosks construction 15 40,000 6,00,000
Computer Systems 16 25,000 4,00,000
Software 20 5,000 1,00,000
Contract with Telecom 1 5,00,000 5,00,000
 Hi-Tech machinery 20 3,00,000 60,00,000
RFID Technology 20 10,000 2,00,000

Subtotal 80,00,000

Ongoing Cost on Monthly Basis

Volunteers’ Salary 12 5,000 60,000

Inspector’s Salary 2 20,000 40,000

Total Monthly Cost 1,00,000

 Honorarium for visiting officer (1 visit/ month) – Rs 3000 per officer excluding of
conveyance and accommodation expenses.
 Conveyance expenses- Actual cost as per bill produced or Rs 10000 whichever is
minimum.
 Accommodation expense- Rs 2000 per day or eligibility of officer as per his
position whichever is minimum.

Total = 3000*2+10000*2+ 2000*2= Rs 30000

Total Cost for a year for 1 village = Rs 45000*12+ Rs 8000000+ Rs 100000*12= Rs

97,40,000/- (Rs Ninety seven lakh forty thousand only)

Contingency fund – Rs 10,00,000 per village

This budget is mentioned for a single village.

Organization Information
Mr. Ritwik Jain – Chairman CSR
Akansha Aggarwal- Project Manager
 Project Lead of individual Village Projects
Anuj Saxena- Buxar
Binod Kumar- Bhojpur
Rahul Kumar Jha - Darbhanga
Ankita Jaiswal - Patna
Gaurav Sinha - Kaimur

Team Members:
 Mr. Ajit Kumar Yadav -Non-Executive Chairman
 Mr. Om Prakash - Non-Executive, Independent-Member
 Mr. Munna Tiwary - Executive