PROJECT PROFILE

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INTRODUCTION:

Milk is a protein food basically collected from cow and buffaloes. It also contains
vitamins, minerals and fats. Milk based products like paneer, cheese, butter milk, ghee have very
good demand as it is consumed by all age group of people. Milk based items have specific
demand for vegetarian dishes.

Paneer and Khua are two main items prepared from milk having good demand in culinary
preparation of vegetarian foods. Paneer is used maximum in preparation of curies like Paneer –
Butter Masala, Matar Masala, etc. Khua is used in making different kinds of sweets like
Rosogolla, khua poda, steam cake, etc. Butter, paneer and khua are good food regarding protein
content. The dishes prepared from the first two items are treated as the major preparation in a
vegetarian thali or meal. In hotels, households on occasions like marriage, birthday parties etc.
these two items have good demand in market.

Ghee and Butter milk are prepared from cow milk have good demand in our state. These
are protein and fatty foods and substitutes of nursery items like meat and fish. Ghee is an
essential item offered in Yagnya in worshipping God in Hindu culture. It is applied with rice and
chapatti, paratha used in staple food.

MARKET DEMAND:

In large scale paneer can be prepared in mechanical way but such unit are less viable in
state like Odisha. The per capita consumption of paneer in Odisha is too low in comparison to
that in northern states. In Odisha, khua is prepared in houses of Gopal caste in villages
surrounding major towns and are sold in towns. The traditional skill can be developed by
changing the capacity of containers and doing some alteration in technology in organized way.
Such organized units will do good business and meet the local demand. Milk production in
Odisha is surplus today and the cooperatives/federations are mostly providing milk to OMFED.
Establishment of such units will depend on collection of milk from such societies. By slightly
increasing the cost of purchase of milk the unit can attract the suppliers and can easily get good
quality of milk.
Cow ghee is one of the most wanted products of milk. It is highly consumed by
vegetarian group of people. It is also used as the cooking medium in some families. It is used in
preparation of different ayurvedic products. The demand is increasing day by day in tune with
increase in population. Now two to three units have already come up [milk mood, pragati,
Odisha diary] in coastal belt of Odisha, still there exists good scope of new units in this line as
their production is not sufficient to meet local demand in many parts of Odisha.
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BASIS AND PRESUMPTION:

1. Preparation of paneer is a continuous process and it can be done in single shift basis.
2. Major activities like packing of toned milk ,panner ,curd etc.are done in day time and
maximum no. of labour are engaged in this shift. In other times, few labours are
engaged just to keep a watch on the process of ripening.
3. The self like of paneer is about 8 days at refrigeration temperature it can enhance to
15 days by using proper packing method.
4. The ripening time of milk to curd is about 12 hours .about 200gm of paneer and
100gm ghee can be prepared from 1 litre of milk separately. In this project their exist
processing of 2000litres milk per day out of which 50 percent will be converted to
toned milk 30 percent will be converted to paneer ,20 percent will be converted to
curd and then ghee ,butter milk.
5. 12% rate of interest was considered on total capital investment.

IMPLEMENTATION SCHEDULE:

Particulars Time Period

Preparation of Project Profile and EIN,FSSAI,GST Filling 1 Month

Availability of Finance 2 Months

Procurement Of Equipment, Machinery And Their Installation 1 Month

Recruitment Of Staff And Procurement Of Raw Material 1 Month

Trial And Systematic Production 6 Months

TECHNICAL ASPECTS:

TONED MILK
Milk collected from cows/buffalo are collected ,filtered and stored in chilling plant.
Cream is separated out and then portable drinking water is added to get required
thickness/viscosity and nutritional value as prescribed by WHO/FSSAI norms.

CHEESE/PANEER:

Cheese is the product made by separating the casein of milk from the liquid or whey. The
butterfat often accompanies the casein, but most of the lactose and other soluble milk
constitutions remain the whey. The manufacture of all cheeses depends upon the activities of
selected micro organisms. Hundreds of different kinds and varieties of cheese are produced by
introducing different cultures into the manufacturing process.
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Cheese may be classified in several manners:

On the basis of hardness: As hard, semi hard and soft cheese.

On the basis of the principal ripening agent : As mould or bacterial cheese.

On the basis of the method of coagulation : As rennet or acid curd

cheese, etc.

Cheeses classified according to their consistency and the use and nature of microbial ripening are
listed below.

Representative cheese Distinctive organisms

Acid – curd Not ripened.
Soft: Cottage cream
Rennet – curd. Ripened by surface growth.
Soft: Limburger. Streptococcus liquefactions, Brevibacterium.
Camembert. Penicillium camemberti, Brevibacterium.
Semi-hard:
Roquefort Penicillium roqueforti
Blue
Hard:
Swiss Propionibacteriumspecies
Cheddar Lacticgroup, Geotrichum

Several kinds of cheese in small quantities are made in India. Paneer is an ancient
indigenous product. Other cheeses are similar to common western types. Soft cheeses include
Surti, Bandal and dacca. Hard cheeses are the cheddar type.

Most cheese is made from either whole or skimmed milk. Some varieties are prepared
from cream and whey. Milk from cows, goats, ewes and mares and other animals has been used
for the making of cheese. The total process can be summarized as:

(1) Inoculation of milk with starter, culture and curding the milk.
(2) Processing curd.
(3) Salting.
(4) Ripening.
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The watery fluid which separates out during the formation of curd is called whey. It consists
of 93 percent water, 5 percent lactose and smaller amount of minerals, vitamins, lactalbumin and
fats. The curd is separated from whey by various methods, depending on the amount of moisture
desired by various types of cheeses. Draining of whey without pressure results in the production
of soft cheeses, which have high moisture content. This is achieved by heat, pressure and cutting
of the curd, after the moisture content has been reduced to the desired limit the curd is molded
into a characteristic shape and size.

Salt (Sodium Chloride) is applied to practically all varieties of cheese. It is added by (1)
floating the cheese in a strong brine solution, (2) rubbing the surface of the pressed cheese with
dry salt.

During the ripening process, the degradation of lactose, protein and fat is brought about
the by the activity of mixed population of micro organisms. Lactose is degraded to lactic acid
and smaller amounts of volatile acids, alcohol and natural products. Bacteria of the lactic acid
type are mainly responsible for the flavour of hard cheeses. Propionibacterium ferments lactose,
producing carbon dioxide. This results in the formation of holes or ‘eyes’ in swiss cheese.
Degradation of protein and fat is considerably less in hard cheeses. In soft cheeses, protein is
completely degraded to Lipases elaborated by the mould hydrolyse the fat, releasing butyric,
caproic, caprylic, capric and higher fatty acids. Some of these acids are oxidized forming
compounds contributing the flavour.

Many undesirable micro organisms are responsible for the spoilage of cheese. These may
affect the flavour, aroma and texture of cheese.

PROCESS OF MANUFACTURE OF BUTTER, GHEE & BUTTER MILK:

1 Cow milk is collected, filtered to remove dirt particles and other organic
impurities.
2 It is boiled on low flame, till the volume is reduced to half of the initial volume.
3 At the beginning milk is stirred to avoid bumping and then it is boiled in slow
flame without stirring.
4 The thick layer of butter which is deposited is taken out to another container and
the remaining is again boiled and cooled.
5 The butter layer along with concentrated milk is stored with some culture medium
for about 12 hours for better separation of butter.
6 Some ice pieces are added to the medium and it is centrifuged either manually or
with centrifuge to collect butter.
7 The butter collected is heated in separate container to get ghee.
8 Ghee is packed in HDPE (Plastic) containers and the mouth is sealed with
aluminum foil and then sent to the market.
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TOTAL CAPITAL INVESTMENT, MEANS, PROFIT AND BREAK EVEN ANALYSIS

Total Capital & Means

Own Land of 18 Guntha ( 31,000 Sq.ft ) - With Motive Power Of 124 Kilo Watt

Capital Investment
Particulars Amount (Rs.)
Annex : Fixed Capital – I 31,990,100
Annex : Working Capital - II (1 Month) 3,461,600
 TOTAL CAPITAL 35,451,700

Means Of Capital Investment

Particulars Amount (Rs.)
Promoter Contribution @ 25% 8,862,925
Bank Finance @ 75% 26,588,775
TOTAL MEANS 35,451,700

Profit :
Amount
Particulars
(Rs.)
Annex : Total Turnover – 1 55,170,000
Less : Annex : Total Cost Of Production – 2 46,671,653
PRIOFIT 8,498,347
Profit Ratio 15.40%
Rate of Return On Investment 23.97%

Break Even Analysis

Fixed Cost (Per Annum):
Particulars Amount (Rs.)
Depreciation On Machinery and 1,476,800
Equipment @ 10%
Depreciation on Furniture @ 20% 15,000
Interest on Bank Loan @12% 3,190,653
Depreciation on Shed @5% 450,000
40% of Salary 115,600
40% Other Expenses 16,000
TOTAL 5,264,053

Break Even Point = Fixed Cost / (Profit + Fixed Cost) X 100 = 38.25%
ANNEXURE : FIXED CAPITAL – I :
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Particulars Amount (Rs.)

Annex : Cost of Plant – 1 11,600,000

Annex : Cost of Machinery – 2 18,460,000
Annex : Pre-operative Expenditure – 3 1,930,100
TOTAL FIXED CAPITAL REQUIREMENT 31,990,100

WORKING CAPITAL – II

Particulars Amount (Rs.)

Annex : Raw Material – 1 2,880,000

Annex : Utility – 2 252,600
Annex : Staff & Labour Payment – 3 289,000
Annex : Other Expenditure – 4 40,000
TOTAL WORKING CAPITAL REQUIREMENT 3,461,600

ANNEXURE : COST OF PLANT – 1

Rate /
Particulars Qty UOM Amount (Rs.)
UOM
Shed / Premises - 2 No.s Each 5000 Sq. Ft. 10000 Sq. Ft. 900 9,000,000
Labour Shed - 1 No.s 1000 Sq. Ft. 800 800,000
Office, Laboratory and Store - 1 No.s 1000 Sq. Ft. 700 700,000
Pump House, DG Set and Boiler Shed - 1 No.s 500 Sq. Ft. 600 300,000
Boring with Submersible Pump 1 No.s 300,000 300,000
Land Development, Boundary, Gate and Internal
1 No.s 500,000 500,000
Road
TOTAL       11,600,000

ANNEXURE : COST OF MACHINERY – 2

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Qt UO Rate / Amount
Particulars
y M UOM (Rs.)
MILK RECEPTION SECTION (A)
Dump Tank : Rectangular in shape, made out of SS
1 No.s 75,000 75,000
304 2 mm Thk. Sheet with Cover
SS Milk Transfer Pump 3000 Ltr. 2 No.s 25,000 50,000
SS 304 Plate Heat Exchanger ( Chiller ) suitable to
1 No.s 175,000 175,000
cool the milk from 35’C to 3”C 2000 Ltr
Raw Milk Storage Tank : Insulated Tank. Both side
SS 304 with digital level indicator, digital thermoter,
1 No.s 775,000 775,000
agitator with 3 phase drive, provided with CIP
system & inlet & outlet ,10,000 Ltr
SS 304 Raw Milk Transfer Pump 2000litrs 1 No.s 25,000 25,000
TOTAL (A)       1,100,000
MILK PROCESSING SECTION (B)
HTST Pasteurizer Unit : Skid Mounted : consisting
of Pack Plate, Float Balance Tank, Bucket Filter,
Feed Pump, Tubular Hot Water System, Auto
1,200,00
(Pneumatic) Flow Diversion Valve, Auto Steam 1 No.s 1,200,000
0
Control Valve, Manual Final Product Outlet Valve,
PID based Control Panel, Overhead Holding Tubes
for Milk : 20 Seconds.
1,050,00
Homogenizer Two – Stage 1 No.s 1,050,000
0
Past. Milk Storage Tank : Vertical, Cylindrical
design Insulated Tank. Vertical, both side SS 304,
complete with manhole, inlet & outlet provision, 3 1 No.s 750,000 750,000
phase drive agitator, sight& light glass, digital level
indicator, CIP system & ladder( SS 304)
Multipurpose vat 1 No.s 365,000 365,000
INNOCULATION TANK 1 No.s 295,000 295,000
VOLUMETRIC CUP FILLING MACHINE 1 No.s 295,000 295,000
INCUBATION ROOM 1 No.s 250,000 250,000
TOATL (B)       4,205,000
PACKING SECTION (C )
Milk Pouch Packing Machine : Mechanical –
SINGLE Head. Reputed Indian Company 1 No.s 350,000 350,000
Make.
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Pre-Fabricated PUF Panels Cold Room : 100 mm

Thick Panels Inside SS 304 and Outside PCGI
Sheets. Door : Two Set. Floor : 100 mm the. Panel
followed by 12 mm Marine Ply and 2 mm the. 1 No.s 345,000 345,000
Aluminium Chequered Plate. 2 Sets. Condensing
Unit with Semi- hermetic Reciprocating Compressor
and equivalent Evaporator. Temperature. : < 4⁰ C.

TOTAL (C )       1,095,000
UTILITY SECTION (D)
Steam Boiler : Horizontal - Chimney 30 Feet and
1,000,00
steam pipe, fittings with safety system and all 1 No.s 1,000,000
0
Accessories.
WATER SOFTNER 1 No.s 245,000 245,000
Refrigeration System : Instant Water Chiller : with 2,000,00
1 No.s 2,000,000
SS 304 Glycol Tank. 0
MCC Panel for Complete Dairy Plant.. 1 No.s 450,000 450,000
Air Compressor 1 No.s 170,000 170,000
TOTAL (D)       3,865,000
MISCELLANEOUS
Interconnecting SS 304 Pipe & Fitments for
1   375,000 375,000
Reception, Processing, Filling and Packing Sections.
Interconnecting MS / GI Pipe & Fitments for
Utility Sections. (Treated Water, Soft Water, Chilled
1   250,000 250,000
Water and Steam Pipe Lines, Compressed Air
Lines).
Electrical Cables, Cable Trays, Conduit Pipes and
1   270,000 270,000
Accessories.
Insulation Materials for Steam and Chilled Water
1   255,000 255,000
Pipe Lines.
TOTAL ( E)       1,150,000
MILK COLLECTION CENTRE AND
INSTALLATION
BULK MILK COOLER WITH ACCESSORIES 1,400,00
3   4,200,000
( New milk collection centre ) 0
Installation and Alignment of Equipment.
Fabrication, Installation and Testing of Pipe Lines 1   400,000 400,000
(Process and Utility Sections).
Insulation and Cladding of Steam and Chilled Water
1   225,000 225,000
Pipe Lines.
Electrical Installation : Laying of Cables, Cable 1   120,000 120,000
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Trays, Conduit Pipes, Dressing, Termination and

Testing.
D.G set 40kva 3   700,000 2,100,000
        7,045,000

GRAND TOTAL (A+B+C+D+E+F)       18,460,000

ANNEXURE : PRE-OPERATIVE EXPENDITURE – 3

Particulars Amount (Rs.)

Project Profile & DPR Preparation 10,000

Travel 10,000
FSSAI, Trade license etc… 20,000
Transformer 500 KVA 650,000
D.G Set 125 KVA 1,233,100
Other Miscellaneous Expenses 5,000
Stationery 2,000
TOTAL 1,930,100
   
WORKING CAPITAL PER MONTH – II :

ANNEXURE : RAW MATERIAL - 1

Production : Toned Milk - 45 KL, Paneer - 6 Ton, Curd – 7.5 Ton, Ghee – 1.5 Ton, Butter Milk
- 15 KL,
Rate /
Particulars Qty UOM Amount (Rs.)
UOM
Milk 90000 Litres 30 2,700,000
Culture 1 No.s   2,000
Filter media 1 No.s   2,000
Starch powder 1 No.s   1,000
Packing Materials 1 No.s   175,000
TOTAL       2,880,000

ANNEXURE : UTILITY - 2
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Rate /
Particulars Qty UOM Amount (Rs.)
UOM
Electricity 35000 K.W.H 7 245,000
Diesel 70 Litre 80 5,600
Water and water treatment: 1 No.s 2,000 2,000
TOTAL       252,600

ANNEXURE : STAFF & LABOUR PAYMENT - 3

Rate /
Particulars Qty UOM Amount (Rs.)
UOM
Manager – Self 1 No.s 0 0
Dairy Technologist - Part Time 1 No.s 25,000 25,000
Supervisor 1 No.s 25,000 25,000
Machine Operator 3 No.s 13,000 39,000
Skilled Labour 7 No.s 11,000 77,000
Unskilled Labour 7 No.s 9,000 63,000
Salesman 2 No.s 15,000 30,000
Watchman 3 No.s 10,000 30,000
TOTAL       289,000

ANNEXURE : OTHER EXPENDITUR - 4

Amount
Particulars
(Rs.)
Traveling & Transport Expenses 10,000
Telephone and Internet 2,500
Stationery 2,500
Publicity 20,000
Other Miscellaneous Expenses 5,000
TOTAL 40,000

ANNEXURE : COST OF PRODUCTION PER ANNUM - 1

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Particulars Amount (Rs.)

Working capital 41,539,200
Depreciation on Machinery and Equipment @ 8% 1,476,800
Depreciation on Shed @ 5% 450,000
Depreciation on Furniture @ 10% 15,000
Interest on Bank Loan @ 12% 3,190,653
TOTAL COST OF PRODUCTION 46,671,653

ANNEXURE : TURNOVER – 2
Rate /
Particulars Qty UOM Amount (Rs.)
UOM
Toned Milk 540000 Litres 36 19,440,000
Paneer 72000 Kgs 190 13,680,000
Curd 90000 Kgs 45 4,050,000
Butter Milk 180000 Litres 50 9,000,000
Ghee 18000 Kgs 500 9,000,000
TOTAL TURNOVER       55,170,000

SOURCES OF RAW MATERIALS, TECHNOLOGY, AND TRAINING

Particulars Company Name Address & Contact

Plot No-26, Auto Nagar,
Technology And
1a) M/S. Indian Dairy Rajahmundry-533296, Andhra
Culture Are Available
Equipments & Fabricators Pradesh, India, Ph No
At:
-08833247879, Mob-9246651059
Office No - 686, Rathor Gali,
1b) Jai Kishan Advanced Agro Mohammadmam Shikohabad,
 
And Dairy Solution Firozabad - 205135, Cell -
7906376015, 8126770513
Sector No-7, Plot No-55,
2. M/S. Sap Technotrade
  P.C.N.T.D.A, Bhosari, Pune -
Pvt.Ltd.
411026, Tel-91-20-2712515
3. National Dairy Research
  Karnal-132001, Haryana, India.
Institute (ICAR)
4. State Directorate Of
Veterinary And Animal Mangala Bag, Cuttack
Husbandry
Machinery And Raw
Available at Local  
Materials :