SHAMSHER B GUPTA

20,000 Liter per Day Milk Processing Plant :

Offering turnkey solutions to set up 20000 liter per day Milk Processing Plant. It is extremely viable (Writing relevant project statistics below). Installed capacity to handle raw milk: 20000 liter per day Average composition of raw milk: FAT 6.5%; SNF 8.5% Output at installed capacity level: Desi Ghee - 500 kg per day in PET bottles Standardized Milk (Fat 4.5%; SNF 8.5%) - 19000 liter per day in tankers 200 Ice Cubes / Ice Blocks (barf silli) per day Major equipments for Milk Reception Centre, Milk Processing Centre, Butter & Ghee Section, Refrigeration & Ice Plant Section and complete fittings and erection charges on turnkey basis cost around Rs. 52.50 lakh. Cost effective machines are designed to give maximum possible profit at low operation cost. Out of Rs. 52.50 lakh above Refrigeration & Ice Plant machine cost around Rs. 20.50 lakh. Other fixed assets are budgeted as: Land & Land Development Rs. 13 lakh; Civil Constructions Rs. 49.50 lakh; Other equipments Rs. 16 lakh; preoperative expenses Rs. 9 lakh. Total capital budget is Rs. 140 lakh. Subsidy @ 25% from MOFPI is admissible for core assets only i.e. for main production line equipments and technical civil construction. Project is designed as: Term Loan Rs. 70 lakh and Cash Credit Limit Rs. 17.50 lakh At 80% capacity utilization level EBIT is projected at Rs. 494 lakh and Net Profit is projected at Rs. 281 lakh. Project is highly viable provided we follow systematic and scientific approach. We can assure you for establishing sale tie up with leading dairy industry for sale of standardized milk in bulk tankers. Term Loan is payable over 5.5 years with quarterly installment of Rs. 5 lakh only. How we could serve you? Detailed Process Flow along with quotations of related machines, quotations of other equipments, Detailed Project Report, Layout & Construction Cost Estimate and related documents for sanction of project can be prepared as original piece of work. Such documents cannot be standardized for every client. We prepare above documents according to the unique needs of client.

Re: 20,000 Liter per Day Milk Processing Plant

Reply #2 on: May 17, 2011, 10:06:31 PM We have just instituted Milk Processing Plant in Aligarh U. P. Its capacity is same 20000 liter per day. Here we have worked and established milk collection system also. It is essential for ensuring viability of milk processing plant. We are informing relevant information below: Purchase price for Raw Milk: Rs. 22.00 per liter. It includes Re 0.50 per liter margin to Dudhiya and Re 0.25 per liter margin to collection point agents. Dudhiya are responsible for collecting milk from village farmers in 40 liter cans and depositing the same to collection point agents. Dudhiya collects milk from one or more than one villages. One Collection Point Agent is stationed to take control of 5 Dudhiya on an average. Your Milk Processing Plants vehicle will collect milk from each collection points 2 times a day on timely manner. Establishing system for collecting milk is crucial for viability of your milk processing plant venture. Care has to be taken to prevent adulteration of milk. Processing of Raw Milk: Here we have designed the system to produce Desi Ghee and Standardized Milk only. If you need to add more products e.g. Yoghurt, Butter, Khowa, Paneer, etc then you may need additional equipments in your production line. Accordingly cost of machines will vary. Input and Output of proposed system is as: Installed capacity to handle raw milk: 20000 liter per day Average composition of raw milk: FAT 6.5%; SNF 8.5% Output at installed capacity level: Desi Ghee - 500 kg per day in PET bottles Standardized Milk (Fat 4.5%; SNF 8.5%) - 19000 liter per day in tankers 200 Ice Cubes / Ice Blocks (barf silli) per day Selling of products: We can assure you for establishing your tie up with leading dairies to sell Standardized Milk in tankers along with payment terms. For the processing plant in Aligarh we have established tie up for selling Standardized Milk in tanker @ Rs. 24 per liter. Market of Desi Ghee is quite matured where you can sell by appointing few sales persons and agents. Just prevent adulteration and deliver best quality products. Customers will purchase milk products, no doubt about it. Training: Your processing plants employees need proper training to run the machines and monitor the quality of products. While commissioning of plant and machinery the engineer will stay in your plant for initial one month and he will ensure that your personals are well versed with operating the machines and checking the quality of products. We have budgeted for total 34 staffs in proposed processing plant. Financials: We have written Bankable Project Report as original piece of work. Major equipments for Milk Reception Centre, Milk Processing Centre, Butter & Ghee Section, Refrigeration & Ice Plant Section and complete fittings and erection and commissioning charges on turnkey basis cost around Rs. 52.50 lakh. Cost effective machines are designed to give maximum possible profit at low operation cost. Out of Rs. 52.50 lakh above Refrigeration & Ice Plant machine cost around Rs. 20.50 lakh.

Other fixed assets are budgeted as: Land & Land Development Rs. 13 lakh; Civil Constructions Rs. 49.50 lakh; Pick-up Vehicle, DG Set, laboratory equipments, other equipments, furniture & fixtures Rs. 16 lakh; preoperative expenses Rs. 9 lakh. Total capital budget is Rs. 140 lakh. Subsidy @ 25% from MOFPI is admissible for core assets only i.e. for main production line equipments and technical civil construction. Project is designed as: Term Loan Rs. 70 lakh and Cash Credit Limit Rs. 17.50 lakh At 80% capacity utilization level EBIT is projected at Rs. 220.32 lakh and Net Profit is projected at Rs. 117.21 lakh. Project is highly viable provided we follow systematic and scientific approach. Term Loan is payable over 5.5 years with quarterly installment of Rs. 5 lakh only. How we could serve you? We will provide all necessary guidelines for negotiating with banks, particularly issues relating to collateral security and margin money by entrepreneur. We have successfully chalked out these issues and will share the appropriate strategy to you too. We will provide Blue Print Layout along with Construction Cost Estimate. We will arrange necessary quotations for main production line equipments, vehicle, generator set, lab equipments, other equipments, etc. We will provide the detailed process flow however our engineer during commissioning time will take care of it physically. Finally we will provide bankable project report along with concerned documents. It will be original piece of work. In fact standardized project report as normally sold in the market lacks uniqueness. Bank managers are flooded with project reports everyday. They quickly judge the quality of project by scanning project reports being submitted. We dont want you to be harassed through answering flurry of questions by bank authorities hence will prepare sanction-able project report for you. Our services are available for nominal fee, many clients are worried for it. For detail please reply through PM informing your complete particulars.

Re: 20,000 Liter per Day Milk Processing Plant

Milk Processing Plant producing Desi Ghee & Standardized Milk along with scientific supply chain & backward linkage Since past few days we are working for 20,000 liter per day Milk Processing Plant in Aligarh & Agra U. P. As the name implies we need to ensure the availability of 20,000 liter milk per day or you have to shut down the business in case of adverse. Profitability is there, no doubt about it, provided you have established scientific supply chain for procurement of raw milk and selling final produce. Unlike other food processing industries, milk processing industry

can achieve 80% capacity utilization level within one month of startup. Other food industry can take minimum 6 months. Here we have designed the equipment lines to produce Desi Ghee & Standardized Milk only. These are simple and less costly. If you want to go for more milk products e.g. Cheese, Yoghurt, Flavored Milk, Paneer, Khowa, etc obviously you need to add more to the cost of plant & machineries. Selling is also easy in our case, for example we are establishing tie up with leading SMP plant for selling Standardized Milk in bulk tankers. Desi Ghee can be sold easily with the help of commission agents & retailers locally. Major challenge is to ensure availability of 20,000 liter milk per day and for round the year. Otherwise no point establishing processing plant. We are describing how well we have managed to ensure the availability of Raw Milk and how well we have managed to establish the sale of final produce and finally how well we have ensured viability & profitability of proposed milk processing plant. This could be lengthy reading; however we request the potential entrepreneurs to understand the essence what we are trying to convey for successful running of this venture. Collection of Raw Milk: We have set the purchase price of raw milk by proposed processing plant as Rs. 22.00 per liter. It includes Re 0.50 per liter margin to Dudhiya and Re 0.25 per liter margin to collection point agents. Dudhiya are responsible for collecting milk from village farmers in 40 liter cans and depositing the same to collection point agents. Dudhiya collects milk from one or more than one villages. One Collection Point Agent is stationed to take control of 5 Dudhiya on an average. Your Milk Processing Plants vehicle will collect milk from each collection points 2 times a day on timely manner. Care has to be taken to prevent adulteration of milk. We have encouraged number of dairy farms by villagers. Depending upon capacity of villager we have prepared bankable project report for 10-cows, 50-cows & 100-cows. Banks are willing to extend loan for such dairy farms because of having tie up with processing plant. We have devoted quite many days for it and the results are promising. During coming 2-3 months we can set up significant number of dairy farms. By the time our processing plant is ready, we will have running dairy farms to ensure the supply of milk. Hence in addition with local efforts by Dudhiya we can garner sufficient quantity of milk through such dairy farms. We are informing relevant project statistics for 10-cows dairy farm for the year Apr12 to Mar13: 10 Milch cows including transportation: Rs. 4,10,000=00 Cowshed construction: Rs. 3,00,000=00 Equipments: Rs. 70,000=00 Term Loan: Rs. 4,99,000=00 (qtr. installment Rs. 30,000=00) NABARD Subsidy: Rs. 1,25,000=00 Cash Credit Limit: Rs. 60,000=00 Milking days: 3000 days

Dry days: 650 days Total income by sale of milk: Rs. 9,60,000=00 Total income by sale of urine: Rs. 65,700=00 Total income by sale of cowdung: Rs. 61,320=00 Total feed cost for milking cows: Rs. 4,04,250=00 Total feed cost for dry cows: Rs. 38,610=00 Profit before Interest, Depreciation & Tax: Rs. 4,30,910=00 Net Profit: Rs. 3,31,391=00 Current Ratio: 1.99 Bank Finance to Working Capital gap: 0.50 Detailed Project Report includes - Introduction, Managing activities of Dairy Farm (along with typical time table), Healthcare & feeding, Marketing of milk, Financial projections for profitability, balance sheet, cash flow statements, ratio analysis and annexure related to financial projections. Cows are of quality breed. Cowshed is unique having suitable flooring, space and roof designed as per NABARD guidelines. Separate rooms for calf, milking and stores. Boundary wall with gate. Processing of Raw Milk: Here we have designed the system to produce Desi Ghee and Standardized Milk only. Hence the equipment lines are simple and less costly. Input at installed capacity level: Installed capacity to handle raw milk: 20000 liter per day Average composition of raw milk: FAT 6.5%; SNF 8.5% Output at installed capacity level: Desi Ghee - 500 kg per day in PET bottles Standardized Milk (Fat 4.5%; SNF 8.5%) - 19000 liter per day in tankers 200 Ice Cubes / Ice Blocks (barf silli) per day Financial Statistics: We have prepared Bankable Project Report as original piece of work. Major equipments for Milk Reception Centre, Milk Processing Centre, Butter & Ghee Section, Refrigeration & Ice Plant Section and complete fittings, tax erection & commissioning charges on turnkey basis cost around Rs. 52.50 lakh. Cost effective machines are designed to give maximum possible profit at low operation cost. Out of Rs. 52.50 lakh above Refrigeration & Ice Plant machine cost around Rs. 20.50 lakh. Other fixed assets are budgeted as: Land & Land Development Rs. 13 lakh; Civil Constructions Rs. 49.50 lakh; Pick-up Vehicle, DG Set, laboratory equipments, other equipments, furniture & fixtures Rs. 16 lakh; preoperative expenses Rs. 9 lakh.

Total capital budget is Rs. 140 lakh. Subsidy @ 25% from MOFPI is admissible for core assets only i.e. for main production line equipments and technical civil construction. Project is designed as: Term Loan Rs. 70 lakh and Cash Credit Limit Rs. 17.50 lakh At 80% capacity utilization level EBIT is projected at Rs. 220.32 lakh and Net Profit is projected at Rs. 117.21 lakh. Project is highly viable provided we follow systematic and scientific approach. Term Loan is payable over 5.5 years with quarterly installment of Rs. 5 lakh only. Selling of products: We can assure you for establishing your tie up with leading dairies to sell Standardized Milk in tankers along with payment terms. For the proposed processing plants we have established tie up for selling Standardized Milk in tanker to Skim Milk Powder manufacturing plants @ Rs. 24 per liter. Market of Desi Ghee is quite matured where you can sell by appointing few sales persons and agents. Just prevent adulteration and deliver best quality products. Customers will purchase milk products, no doubt about it. Training: Your processing plants employees need proper training to run the machines and monitor the quality of products. While commissioning of plant and machinery the engineer will stay in your plant for initial one month and he will ensure that your personals are well versed with operating the machines and checking the quality of products. We have budgeted for total 34 staffs in proposed processing plant. How we could serve you? We will provide all necessary guidelines for negotiating with banks, particularly issues relating to collateral security and margin money by entrepreneur. We have successfully chalked out these issues and will share the appropriate strategy to you too. We will provide Blue Print Layout along with Construction Cost Estimate. We will arrange necessary quotations for main production line equipments, vehicle, generator set, lab equipments, other equipments, etc. We will provide the detailed process flow however our engineer during commissioning time will take care of it physically. Finally we will provide bankable project report along with concerned documents. It will be original piece of work. In fact standard project report as normally sold in the market lacks uniqueness. Bank managers are flooded with project reports everyday. They quickly judge the quality of project by scanning project reports being submitted. We dont want you to be harassed through answering flurry of questions by bank authorities hence will prepare sanction-able project report for you. Of course our documents will be for processing plants and dairy farms both. We will explain you the appropriate strategy for you to adopt to bring this system on earth. In fact while ensuring the viability of your processing plant you are developing living standards of nearby villagers also. Our services are available for nominal fee, many clients are worried for it. We dont want to disclose price here itself. We want to associate with serious entrepreneurs. Entrepreneurs should not be concerned for price of project report, rather they should be bothered for establishing and running successfully their business venture. We are repeating price is very nominal and affordable. To order our services please reply through PM informing your complete particulars (you have to register and login in this forum).