Project at a glance (6,00,000 litres milk processing plant)

Working Capital
Capital Expenditure
Technical/Economin Parameters
Income Projections
Expenditure Projections
Cost Benefit Analysis
Income Statement
Loan Repayment Schedule
Salaries/Wages

Land requirement

100 acres

Milk handling capacity

600000

Products to be manufactured

Litres/Day

Tetra Milk (inc. Bye Products)

Market

Domestic

Cost of the project

Bank loan
Margin money (Down payment)

138.12
103.59
34.53

Rs Crores
Rs Crores
Rs Crores

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Working Capital Requirements

S.No
x

1
2
3
4
5

6
x

Unit cost
(Rs.)

Particulars
Daily Processing Capacity (Litres)
Capacity Utilisation
Daily Milk Processing (In Litres)
Stock in progress
Packing material
Chemicals & detergents
Stores, spaces and fuel (1)
Finished goods
Tetra Pack
Cream
Ghee

24
2
0.4
0.92
45
120
200

Receivables
Total ( 1 to 6)
Less: Sundry Creditors (2)
Total working capital required
In Crores
In Crores
In Crores

Margin money @ 25% of working capital

Bank Cash credit
Interest on working capital @ 16% (3)

Note:
(1) Outlay on stores and spares is considered @ Rs.0.92 per litre on assuming 40% of power and fu
(2) Interest on working capital during first year is considered for 6 months only.
(3) It is assumed that payment to the producers are made once in a week.

Years
III

Days

II

1
30
30
30

600000
70%
420000
10080000
25200000
5040000
11592000

600000
80%
480000
11520000
28800000
5760000
13248000

1
10
30

17752500
7200000
51840000

20288571 22824642.857143 25360714.286

8228571.43 9257142.8571429 10285714.286
59245714 66651428.571429 74057142.857

148232700
276937200
70560000
206377200
20.64
5.16
15.48
1.24

177879240 210119852.25 245139827.63

324970097 375597066.53572 429003399.05
84672000
100018800
116688600
240298097 275578266.53572 312314799.05
24.03
27.56
31.23
6.01
6.89
7.81
18.02
20.67
23.42
2.88
3.31
3.75

IV

600000
90%
540000
12960000
32400000
6480000
14904000

600000
100%
600000
14400000
36000000
7200000
16560000

assuming 40% of power and fuel charges and repairs and maintenance
onths only.

Back

V
600000
100%
600000
14400000
36000000
7200000
16560000
25360714.286
10285714.286
74057142.857
257396819.01
441260390.43
122523030
318737360.43
31.87
7.97
23.91
3.82

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Capital Cost of the Project

Sr. No.
Particulars
1
2
A) LAND AND SITE DEVELOPMENT
i) Land (on Rent)
ii) Development charges
iii) Gates
iv) Land leveling and roads
vi) Water Supply (borewell, tank, pump)
Total
B) CIVIL WORKS
i) Dairy plant building
ii) E T Tanks
iii) Condenser tank
iv) Superviser quarters
v) Workers quarters
vi) Mini Samridhi Centres
Total
C) PLANT AND MACHINERY
i) Can conveying and washing system
ii) Weigh scale
iii) Dump tank and accessories
iv) Detergent tank
v) Milk chiller
vi) Cream Separator
vii) Milk pasteuriser
viii) Storage tanks
ix) S S tanks
x) Packaging machine & accessories
xi) Ghee boiler
xii) Ghee storage tank
xiii) Boiler & accessories
xiv) D.G. set
xv) Refrigeration equipment
xvi) Electrical panels & cables
xvii) Pumps
xviii) S S pipes & fittings
xix) Erection & commissioning
xx) TP Machinery
xxi) MS Centres Cooling Equipment
Total
D) MISC. FIXED ASSETS
i) Furniture

Specification
3
-brick wall
Steel
WBM
--

RCC
ACC
--ACC
ACC

-500 kg
1000 lts
-3000-5000lph
2000-5000 lph
5000 lph
10,000 lts
300 lts
2500 pph
500 kg
1000 lts
300 kg/h
187.5KVA
------

--

ii) Computer
iii) Fire fighting equipment
-iv) Collection centre equipment
Centrifuge, butyr.20
v) Work table
-vi) Milk cans
40 lts (plastic)
vii) Crate conveying system & trolleys
-viii) Lab equipment
-ix) Effluent treatment plant
-x) Water softener
-Total
E) VEHICLES
i)
Jeep Mahindra
ii) Hero Motorcycle
iii) Refrigerated Trucks
Total
F) DEPOSITS
i) State electricity board
-ii) Telephone
-Total
G) PRELIMINARY & PREOPERATIVE EXPENSES
i) Incorporation of company
ii) Project preparation
iii) Market survey
iv) Establishment ( Salary & wages )
v) Travelling
vi) Consultancy
vii) Administrative expenses
viii) Interest during construction
Total
H) CONTINGENCY ( @ 10% of cost of buildings, plant & machinery and misc. fixed as

I)
MARGIN MONEY FOR WORKING CAPITAL

( 25% of first year's requirement - statement - 2 )

J)

x
x

GRAND TOTAL ( A+B+C+D+E+F+G+H )

Conversion Factor

10000000

Back
Quantity
4

Unit Cost (Rs) Total Cost (Rs. In crores)

5
6

100 acres
424 RM
100
---

800000
495/RM
15000 each
---

8.000
3.148
0.150
0.750
2.625
14.673

150000 sq.ft
50000 sq.ft.
--22500 sq.ft.
30000 sq.ft.
100

900/sq.ft.
600/sq.ft.
--750/sq.ft.
540/sq.ft.
200000

13.500
3.000
1.125
0.855
1.688
1.620
2.000
23.788

-20
10
10
10
10
10
120
10
10
10
10
10
10
-10 Set
40
---

-354000
177000
----957000
226500
940500
528000
297000
----90000
---

50

125000

1.845
0.708
0.177
0.093
0.291
0.570
0.782
11.484
0.227
0.941
0.528
0.297
1.638
0.600
22.815
0.900
0.360
3.000
3.750
10.000
0.625
61.630

--

--

0.750

50
-100
50
5000
-----

50000
-9000/centre
50000
600
-----

15
30
15

725000
50000
2500000

---

---

0.250
0.150
0.090
0.250
0.300
0.780
1.000
4.875
0.300
8.745

1.088
0.150
3.750
4.988
0.525
0.375
0.900
0.020
0.100
0.150
5.131
0.450
0.150
0.150
6.151

achinery and misc. fixed assets )

12.087
5.159

(In Crores)

138.121

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Techno Economic Parameters

S.No
Particulars
1 Installed capacity
2 Capacity utilisation
3
4
5
6
7
8
9
10
11
12
13
14
15

No. of Working days

Raw material Milk
Procurement price of milk
Commission on milk collection
Transportation charges
Power and fuel
Packing material
Chemicals & detergents
Salaries and wages
Repairs and maintenance
Over heads (incl. Of insurance)
Milk distribution cost
Mini Samridhi Centers
Total for Mini Samridhi Centers

16 Product mix
i) Tetra Pack Milk
ii) Cream (50% fat)
iii) Saleable cream (25% of iii approx.)
iv) Ghee
17 Selling prices
Tetra Pack Milk
Cream
Ghee
18 Depreciation (%)
Civil Structures
Plant and Machinery
Misc. Fixed assets

Unit
litres /day
%
Litres
lakh litres/yr.
Rs. /litre
Rs. /litre
Rs. /litre
Rs. /litre
Rs. /litre
Rs. /litre
Lakhs Rs./ yr
Rs. /litre
Rs. /litre
Rs. /litre

I
600000
70%
420000
184
772.8
22.00
1.00
1.00
2.00
2.00
0.40
513.09
0.30
0.72
3.60
48000000

litres /day
litres /day
litres /day
Kg/day

394500.0
24000.0
6000.0
8640.0

Rs. /Litre
Rs. /Kg
Rs./Kg

45
225
240
Straight line method
3
10
10

e method

Back

II
600000
80%
480000
365
1752
23.10
1.05
1.05
2.10
2.10
0.42
1029.00
0.32
0.76
3.78

Years
III
600000
90%
540000
365
1971
24.26
1.10
1.10
2.21
2.21
0.44
1131.90
0.33
0.79
3.97

IV
600000
100%
600000
365
2190
25.47
1.16
1.16
2.32
2.32
0.46
1245.09
0.35
0.83
4.17

V
600000
100%
600000
365
2190
26.74
1.22
1.22
2.43
2.43
0.49
1369.60
0.36
0.88
4.38

50400000

52920000

55566000

58344300

450857.1
27428.6
6857.1
9874.3

507214.3
30857.1
7714.3
11108.6

563571.4
34285.7
8571.4
12342.9

563571.4
34285.7
8571.4
12342.9

47.25
236.25
252.00

49.61
52.09
248.06
260.47
264.60
277.83
Written down value method
10
25
33

54.70
273.49
291.72

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Income Projections
S.No

Particulars

Unit

1
2

Milk processed

litres/day

Tetra Pack Milk

Cream (50% fat)
Saleable cream (25% of iii approx.)
Ghee

litres /day
litres /day
litres /day
Kg/day

Income per day

Tetra Pack Milk
Cream
Ghee

Rs. /Litre
Rs. /Kg
Rs./Kg

Total Income/day

Rs. Lakhs

Yield per day

i)
ii)
iii)
Iv)
3
i)
ii)
iii)
4

Total Income per year

Note:
(1) 1st year for 6 months i.e. 182 days

(1)

Rs. In Crores

Back

I
420000.0

II
480000.0

Years
III
540000.0

IV
600000.0

V
600000.0

394500.0
24000.0
6000.0
8640.0

450857.1
27428.6
6857.1
9874.3

507214.3
30857.1
7714.3
11108.6

563571.4
34285.7
8571.4
12342.9

563571.4
34285.7
8571.4
12342.9

17752500.0
1350000.0
2073600.0

21303000.0
1620000.0
2488320.0

25164168.8
1913625.0
2939328.0

29358196.9 30826106.7
2232562.5
2344190.6
3429216.0
3600676.8

21176100

25411320

30017122

35019975

36770974

385.4

927.5

1095.6

1278.2

1342.1

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Expenditure Projections
S.No

Particulars
I

1
2
3
4
5
6
7
8
9
10
11
12

Milk processing per year (Litres)

Raw material - milk
Commission on milk collection
Transportation charges
Power and fuel
Packing material
Chemicals & detergents
Salaries and wages
Repairs & maintenance
Overheads
Milk distribution cost
Mini Samridhi Center running cost

76440000
###
76440000
76440000
152880000
152880000
30576000
51309041
22932000
55036800
275184000
48000000

Total Operational Cost

(In Crores)

262.3

Back
Years
III

II

IV

175200000
4047120000
183960000
183960000
367920000
367920000
73584000
102900000
55188000
132451200
662256000
50400000

197100000
###
217302750
217302750
434605500
434605500
86921100
113190000
65190825
156457980
782289900
52920000

219000000
###
253519875
253519875
507039750
507039750
101407950
124509000
76055963
182534310
912671550
55566000

219000000
###
266195869
266195869
532391738
532391738
106478348
136959900
79858761
191661026
958305128
58344300

622.8

734.1

855.1

898.5

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Cost-Benefits Analysis

Years
x

Sr.No.
(Rs. In Crores)

Particulars

II

132.962
262.336
395.297
385.405

622.766
622.766
927.513

---385.405

---927.513

1 Costs
i) Capital cost (1)
ii) Recurring cost
Total Cost
2 Benefits
i. Residual value of
a) Civil Structures
b) Plant & machinery
c) Misc Fixed Assets
Total Benefits

3 Net Benefits (3-(1+2))

4 D F at 15% (absolute number)
a) PV of costs @ 15% DF
b) PV of benefit @ 15% D F

5 Discount Factor at 100%

6 Net Present Value at 100% D F

-9.892
304.747
0.870
0.756
343.737
470.901
335.135
701.333
Benefit Cost Ratio
Net Present Value
0.500
0.250
-4.946
76.187
IRR is more than 100%.

Note:
(1) The capital cost considered excludes the capitalised margin money on working capital.

Back
Years
III

IV

734.145
734.145
1095.625

855.130
855.130
1278.229

898.509
898.509
1342.141

---1095.625

---1278.229

14.046
14.625
1.809
1372.621

361.480
0.658
482.712
720.391
1.420
937.135
0.125
45.185

423.099
0.572
488.923
730.832

474.112
0.497
446.718
682.435

0.063
26.444

king capital.

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x
x
x

Income Statement
(Rs. in crores)

Sr.No.

Particulars

x
1
2
3
4

Income
Operational cost
Oerating profit
Less:
i) Interest on term loan @ 16%
ii) Interest working capital @ 16%
iii Depreciation:
Civil works
Plant and machinery
Misc. fixed assets
iv. Amortisation of preliminary and preoperative expenses
5
Profit before tax
6
Tax at 35%
7
Net profit
Net Profit Ratio

Loan Repayments

Depreciation
Civil Works
Op Bal
Closing Bal
Dep

Plant and Machinery

Op Bal
Closing Bal
Dep

Misc. fixed assets

Op Bal
Closing Bal
Dep

Amortisation of preliminary and preoperative expenses

x

x Note:
(1) Capital cost in 1st yr. + residual value in last year

x x

Years
III

II

385.41
262.34
123.07

927.51
622.77
304.75

1095.62
734.14
361.48

1278.23
855.13
423.10

12.43
1.24

16.57
2.88

12.43
3.31

8.29
3.75

2.38
15.41
4.58
1.03
86.01
30.10
55.91

2.14
11.56
3.05
1.03
267.52
93.63
173.89

1.93
8.67
2.03
1.03
332.09
116.23
215.86

1.73
6.50
1.36
1.03
400.45
140.16
260.29

14.51%
13.67

18.75%
45.36

19.70%
41.64

20.36%
37.93

I
23.79
21.41
2.38

I
61.63
46.22
15.41

I
13.73
9.16
4.58

IV

II
21.41
19.27
2.14

Years
III
19.27
17.34
1.93

IV
17.34
15.61
1.73

II
46.22
34.67
11.56

Years
III
34.67
26.00
8.67

IV
26.00
19.50
6.50

II
9.16
6.10
3.05

Years
III
6.10
4.07
2.03

IV
4.07
2.71
1.36

Years

I
1.03

II
1.03

III
1.03

IV
1.03

Back

V
1342.14
898.51
443.63
4.14
3.82
1.56
4.88
0.90
1.03
427.30
149.55
277.74
20.69%
33.87

V
15.61
14.05
1.56

V
19.50
14.63
4.88

V
2.71
1.81
0.90

V
1.03

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x
x

Repayment Schedule
(Rs. in crores)
x
Year

Loan outstanding
Begining of the year
103.591
103.591
77.693
51.795
25.898

1
2
3
4
5

End of the year

103.591
77.693
51.795
25.898
0.000

x
1. During the first year the average loan utilisation is considered at 75% of the total amount.
* Repayment period : 6 years including 1 year grace period.
** Interest on Term loan and Working loan is assumed @ 16% per annum.

Principal

Interest on Term Loan1

Interest on Working
Capital

0.000
25.898
25.898
25.898
25.898

12.431
16.575
12.431
8.287
4.144

1.238
2.884
3.307
3.748
3.825

he total amount.

Back

Total Repayment
(4+5+6)
13.669
45.356
41.636
37.933
33.866

x
x
x

x
x
x
x
x
x
x
x
x
x
x
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x
x
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Salaries/Wages
Sr.No.

Particulars

Number

Salary/Wages
(Rs./month)

1
2
3
4
5
6
7
8
9
10

Plant Manager
Procurement officer
Field supervisors
Processing supervisors
Mechanics
Driver
Watchman
Administrative staf
Laboratory staf
Unskilled labour
Total
Other perks
Total Salary and Wages

50
50
100
100
100
50
150
150
100
400
1250
(40% of the salary)

25000
7500
4500
6000
3000
6000
3000
5000
4500
3000

Back
Total
(Rs.year)
15000000
4500000
5400000
7200000
3600000
3600000
5400000
9000000
5400000
14400000
73500000
29400000
102900000

x
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x
x
x
x
x
x
x
x
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x
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