Ppt Report

High Tech Dairy &

Prospects Thereof

Submitted by: Abhishek ChadhaHirtarshan Singh

Jyoti SharmaKunwar

Sumneet Vishwajeet

Contents Business Idea Information about Company Business Objectives Market Analysis Challenges Marketing Strategies Location , Cost & distribution Layout and Building

Name & Logo Hindustan Hi-Tech Dairy Ltd ( HHTD)

Tagline “Shudhata Hi Hai Hamari Pehchan”

Mission To establish a hi-tech dairy farm with

all the latest technologies on feeding , milking, and breeding programme and supply of high quality milk to the customers.

Vision To be known as number one Hi-Tech

Dairy in India providing the Best Quality of milk.

Business Idea India ranks first in the world with present

production level of 110 million tones milk per annum.

The business idea focuses on the huge scope that dairy farming has to offer to the farmers in India.

To bring in private participation into the Indian dairy sector through public private partnerships.

Business Objective Ensuring Quality Procurement and efficiencies in supply chain Product differentiation and value addition Alternative Employment Source Self Employment Increasing Milk Requirements Government Assistance eg NABARD, NDDB No Foreign Competition

LAWS GOVERNING DAIRY SECTOR

There is catena of laws governing dairy sector and as many as ten different ministries and department administers dairy sector. The laws affecting dairy sector are:

Prevention of Food Adulteration Act 1954 and Prevention of Food Adulteration Rules 1955.

The Prevention of Food Adulteration Act (PFA), 1954 focuses primarily on the establishment of regulatory standards for primary food products, which constitute the bulk of the Indian diet.

Act provides for public analysts and food inspectors with an objective of inspecting food establishments, sampling and testing of food and investigating the complaints.

ENVIRONMENT PROTECTION ACT, 1986: - This Act incorporates rules for the manufacture, use,

import and storage of hazardous microorganisms / substances / cells used as

foodstuff.

POLLUTION CONTROL (MINISTRY OF ENVIRONMENT AND FORESTS): -

A no-objection certificate from the respective State Pollution Control Board is

essential for all dairy plants.

INDUSTRIAL LICENCES: - No license is required for setting up a dairy plant in India.

Only a memorandum has to be submitted to the Secretariat for Industrial Approvals

(SIA) and an acknowledgement obtained. However, a certificate of

registration is required under the Milk and Milk Products Order (MMPO), 1992.

Market Analysis In India, rural households consume

almost 50% of India‘s total milk production.

The remaining 50% of milk production is sold in the domestic market.

Of the share of milk sold in the domestic market, almost 50% is used as fluid milk, 35% is consumed as traditional products (paneer, cheese, yoghurt and milk based sweets).

Market Analysis (Contd…) 15% is consumed for the production of

butter, ghee, milk powder and other processed dairy products (including baby foods, ice cream, whey powder, casein, and milk albumin).

The organized dairy sector consumes 15% of India‘s total milk production, which it uses primarily for the production of liquid milk, butter, cheese, and milk powder.

Market Analysis (Cont….) The unorganized dairy market in

India is about 80% and still the dudhaiya and halwai dominate this section of the market. In this traditional system the milk produced is directly sold to the consumers at the farm .

Market Analysis (Cont….) The organized sector basically pertains

to the dairy cooperatives and private and Govt. dairies which procure, process and market milk and milk products. In this channel, the milk produced is deposited by the farmers in the collection centre‘s at the village level and then this milk is pooled and transferred to the chilling centre‘s and bulk milk cooling units where the milk is cooled to 4°C.

Challenges

• Small Holder Level• Collection Level• Processing Level• At the Storage & Logistics Level• Marketing

Challenges (Cont…) Challenges at Small Holder Level

a) Inadequate Feeding of Animalsb) More Disease Incidencec) Lack of Chilling Capacitiesd) Delayed Payment of Dues

Challenges (Cont…) Challenges at Collection Level

a) Milk Base Mainly Consisting of Small Holdersb) Involvement of too Many Intermediariesc) Gaps In Informationd) Absence of a Screening Systeme) Lack of Infrastructuref) Manipulation of the Quality of Milk by the

Farmers

Challenges (Cont…) Challenges at the Processing Level

a) Adulteration and Food safetyb) Lack of trained and skilled workers

Challenges (Cont…) Challenges at the Storage &

Logistics Level

a) Lack of cold storage facilitiesb) Gap in the cold chain and transport

facilities

Challenges (Cont…) Challenges for Marketing

a) Majority of the Market is still unorganized

b) Acceptability of the Consumerc) Less penetration to the rural Market

Investment Opportunities

Government Initiatives & Schemes

a) Project for Cattle & Buffalo Breedingb) Integrated Dairy Development Programc) Strengthening Infrastructure for Quality

& Clean Milk Productiond) Central Fodder Development

Organization Schemee) National Dairy Plan

PackagingThere will be three types of packets Pure Buffalo Milk Pure Cow Milk Mixed Milk (Buffalo & Cow)

Packaging & Pricing Packaging: Full Cream 1 litre = Rs20 Half Cream 1 litre = Rs18 Skimmed Milk 1 litre = Rs 15

1 litre = Rs20 ½ litre = Rs 10 250ml = Rs 5

Marketing Startegies Rural Market CSR Campaign- “Utthaan” Local News Paper, Regional TV Channel.

Urban Market Sample, Internet, Social Media,

Newspaper, Magazines.

Location , Cost & distribution

Haryana Region Cost will be around 10 crore Franchisees would be distributed in

targeted regions. Local General Stores

Financial and Operational Structure

About two acres of land is required for a milk processing plant handling about 10000 L of milk per day (8 hours).

Location of site in proximity to road/rail facilities, services, such as water, electricity and social infrastructure, etc.

The subsoil of the site should be firm with proper drainage.

Entire site to be fenced with barbed wire or compound wall to be constructed with gates at suitable places.

 Internal roads should be of tar/bricks depending upon the soil conditions and the number of vehicles moving every day.

Layout and Building The civil works comprises of factory

building, quarters, office, garages, security post etc.

The factory building for the milk reception, quality control, processing, packing and storage of milk products should be as per the BIS.

The total covered area will depend upon the processes involved, products manufactured, the quantity of milk handled and the equipment chosen for services and product manufacturing.

About 4000 sq.ft. area of building is required for handling 10000 liters of milk.

Facilities to be Provided: Raw Milk Reception Dock (RMRD) -

consisting of can conveyor, can washer, weighting balance, dump tank etc.

Processing Hall - cream separator, chiller, homogenizer, pasteuriser and other related machinery are installed.

Storage area- for milk storage tanks.  Packing area-for packing of liquid milk

and other products. Cold storage-for keeping the milk and

milk products before sending to market.

Quality Control Laboratory-for testing the quality of milk and milk products.

Utilities area for installing boiler, generator set, water treatment plant, maintenance and store area for spares.

Waste water treatment plant area for treating the dairy effluents before releasing to the fields.

Quarters and office area-for all the essential staff.

Vehicle parking area-both for the milk procurement and distribution vehicles.

Input supply area- for providing veterinary service, supply of feed, fodder seeds, etc.

Plant and Machinery The machinery as per the BIS. Most of the dairy machinery are

manufactured in the country by ALFA-LAVAL, L&T, HMT, Nichrome Pvt. Ltd., Samarpan Fabricators , Goma Engineering Ltd. etc.

Specifications, quantity and costs for 10,000 litres capacity plant will be :-

Land and Site Development:

Land (including registration charges): 2acre*90,00,000/acre = 180,00,000 Development charges (Brick Wall) : 1000 RM*200/RM = 200,000 Gates (Steel) : 2*28000 (each) = 56,000

Infrastructural Facilities for Raw Material and Utilities

Raw Material : The principal raw material is milk. The

extent of milk shed area, milch animal population , average milk yield etc will determine the size of the plant. The method of procurement and transportation of milk is also required. The availability of other inputs such as packing materials, disinfectants and consumable should be ascertained.

Power : A three phase electricity supply is

required for milk processing plants. The power requirement depends upon the load to be connected and the necessary approval from SEB should be obtained for connection. Depending upon the position of power supply, standby generators may be considered for connecting the essential sections.

Water : A milk processing plant requires the

water in the ratio of 2:1 (2L of water for 1L of milk processed) for cleaning of equipment, cold storage and drinking purposes.

Steam : The steam requirement (kg/hr)

depends upon the processes involved and the source of steam may be met by coal/oil/gas fired / electric boiler.

 Fuel : coal/gas requirement and the

availability to be ascertained.

Compressed Air : It will be required for various pneumatic operations

flow control operations as well as for cleaning purposes. The total requirement of compressed air and the capacity of the compressors is required to be furnished.

Vehicles : The vehicles required for procurement and

distribution of milk depends on the quantity of milk to be handled. The number of vehicles required, source of supply, rental charges etc. need to be furnished.

Environmental Aspects and Pollution Control:

There are no hazardous effluents generated from a milk processing plant. However, construction of effluent treatment plant is necessary in case of multiproduct large size plants for treating the effluents before discharging for proper disposal. The final effluent should meet the requirements of Pollution Control Board and is necessary to get clearance from them.

CAPITAL COST OF PROJECT:

The capital cost includes the cost of land, development of land, fencing, internal roads, civil works (Plant building, office, quarters, godowns, etc.), plant and machinery, preliminary and preoperative expenses, margin money for working capital etc.

Capital cost of a model dairy processing plant with capacity to process 10000 litres per day works out to Rs.116.581 lakhs. The project cost comprises of Rs. 4.81 lakhs on land and land development , Rs.14.52 lakhs on civil structures, Rs. 64.38 lakhs on plant and machinery , Rs.22.43 lakhs on account of misc. fixed assets, deposits & preliminary and preoperative expenses, Rs. 3.50 on vehicles, Rs.4.57 lakhs of contingency and Rs. 2.37 lakhs of margin money for working capital.

 FINANCIAL ASSISTANCE The projects on milk processing including

manufacturing of milk products would be considered for refinance support by National Bank. Therefore, all participating banks may consider financing this activity subject to their technical feasibility, financial viability and bankability .

The company should normally meet 25% of the project cost out of their own resources.

Interest rate will be determined by RBI/NABARD from time to time.

Repayment time will depend upon the gross surplus generated, it may be upto 8 years with first one/two years as the grace period.

Project at a glance for 10000 litres model milk processing plan

1 Land requirement 2 acres

2 Milk handling capacity 10000 liters/day

3 Products to be manufactured Toned milk, Standard milk, Cream, Gee

4 Market Domestic

5 Cost of the project 18crore

6 Bank loan 10 crore

7 Margin money (Down payment) 8 crore

LAND AND SITE DEVELOPMENT

A) LAND AND SITE DEVELOPMENT

       Price (in lakhs)

i) Land (including registration charges)

-- 2 acres 5000000/acre 100.00

ii) Gates Steel 4 25000each 1.00

iii) Water Supply (borewell, tank, pump)

-- -- 1.75

iv) Miscellaneous       20

Total 122.75

B) CIVIL WORKS    

i) Dairy plant building 4000 sq.ft 70.00

ii) E T Tanks -- 5.00

iii) Condenser tank -- 3.00

iv) Superviser quarters 450 sq.ft. 15.00

v) Workers quarters 600 sq.ft. 30.00

  Total   123.00

Sr.No. Particulars Number Salary/Wages(Rs./month)

Total(Rs.year)

1. Plant Manager 1 7500 1200000

2. Procurement officer 1 5000 600000

3. Field supervisors 2 3000 200000

4. Processing supervisors 2 3000 180000

5. Mechanics 2 2000 260000

6. Driver 1 1500 200000

7. Watchman 3 1500 180000

8. Administrative staff 3 2000 200000

9. Laboratory staff 2 2000 200000

10. Unskilled labour 8 1500 180000

  Total 25   3300000

  Other perks (40% of the salary   1320000

  Total salary and wages     4620000

PLANT AND MACHINERY

i) Can conveying and washing system

-- -- 1.23

ii) Weigh scale 500 kg 2 2.36

iii) Dump tank and accessories

1000 lts 1 0.59

iv) Detergent tank -- 1 0.31

v) Milk chiller 3000-5000lph 1 0.97

vi) Cream Separator 2000-5000 lph 1 5.7

vii) Milk pasteuriser 5000 lph 1 7.82

viii) Storage tanks 10,000 lts 2 6.38

ix) S S tanks 300 lts 1 0.76

x) Packaging machine & accessories

2500 pph 1 3.14

xi) Ghee boiler 500 kg 1 1.76

xii) Ghee storage tank

1000 lts 1 99,000 0.99

xiii) Boiler & accessories

300 kg/h 1 LS 5.46

xiv) D.G. set 62.5KVA 1 LS 3.00

xv) Refrigeration equipment

-- -- LS 15.21

xvi) Electrical panels & cables

-- 1 set LS 3.02

xvii) Pumps -- 4 30,000 1.20

xviii) S S pipes & fittings

-- -- LS 2.00

xix) Erection & commissioning

-- -- LS 2.50

  Total       64.38

D) MISC. FIXED ASSETS

i) Furniture -- -- 0.50

ii) Computer Pentium -- 0.50

iii) Fire fighting equipment

-- -- 0.10

iv) Collection centre equipment

Centrifuge, butyr.20

-- 0.60

v) Work table -- -- 0.28

vi) Milk cans 40 lts (plastic) 500 3.00

vii) Crate conveying system & trolleys

-- -- 0.52

viii) Lab equipment -- -- 2.50

ix) Effluent treatment plant

-- -- 3.25

x) Water softener -- -- 0.20

  Total     12.45

E) VEHICLES            

i) Jeep Mahindra   1 3,25,000 3.25

ii) Scooter Bajaj   1 25,000 0.25

Thanks