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Animal Husbandry Milk Processing

1. INTRODUCTION 1.1 The Indian dairy industry is contributing significantly to the country's economy, besides improving the health standard by increasing the nutrition value of the food. The value of output from Dairy Sector increased to Rs.5,00,510 million in 1994-95 from Rs.2,75,080 million in 1990 and is expected to reach the level of Rs. 8,50,000 million by the year 2000 A.D. 1.2 India occupies first position in the world having a total bovine population of 288 million compared to the world's total bovine population of 1420 million. As per 1992 livestock census, the country has about 62.90 million breedable cows and 42.46 million breedable buffaloes (Statewise and species/breedwise figures are given in Annexure I). The cross bred cattle are predominant in Kerala, Maharastra, Tamil Nadu , Punjab and Uttar Pradesh, While buffaloes are very common in Uttar Pradesh, Andhra Pradesh, Rajasthan, Madhya Pradesh, Maharastra, Gujarat, Punjab, Bihar, Karnataka , Haryana and Tamil Nadu 1.3 There has been a major improvement in milk production which increased from 17 million tones in 1951 to 70.1 million tonnes in 1997 and the growth was maximum between 1980 and 1990. Uttar Pradesh, Punjab, Madhya Pradesh, Rajasthan, Maharashtra, Gujarat, Andhra Pradesh, Haryana, Tamil Nadu and Bihar contributed to the extent of 85 percent of the total milk production in the country. Today, India is the second largest producer of milk in the world after the United States of America. The present per capita availability of milk is 205 gms as against the ICMR recommendation of 250 gms. The statewise milk production during 1992-93 and targets for 1996-97 along with the per capita availability of milk are given in Annexure I. 1.4 Recognizing the importance of the sector, the notable programmes taken up are key village schemes, intensive cattle development projects, crossbreeding projects through bilateral assistance, operation flood programme and technology mission by establishing National Dairy Development Board (NDDB). 1.5 In 1970 under the aegis of NDDB, "Operational Flood" programme was launched to modernize the dairy sector and flood the 4 metro cities with milk from dairy cooperatives. By the end of 1996-97, 74,383 village milk producers cooperatives were organised in 264 districts with an average rural milk procurement of 12.26 million liters per day. 1.6 Another step was taken in 1989, to augment rural income by launching Technology Mission on Dairy Development (TMDD), which aims at applying modern technology to improve productivity, reduce costs of operation and thus ensure grater availability of milk and dairy products. 1.7 With the liberalization of the Indian economy in 1991, the dairy sector too was delicenced. However, on June 9, 1992 GOI issued a Milk and Milk Products Order (MMPO), according to which, a dairy handling more than 10000 liters of milk per day is required to get itself registered. The registering authority shall be an officer of the State Government or Union Territory in respect of units handling upto

75000 liters/day, or 3750 MT of milk solids per annum, where the entire milkshed of the unit lies within a State / Union Territory. In case of those units, which are handling more than 75000 liters of milk per day or 3750 MT of milk solids per annum, the registering authority is Department of Animal Husbandry and Dairying ,Ministry of Agriculture, Govt. of India.

2. MILK PROCUREMENT AND PROCESSING The organized dairy sector (both cooperatives and private) is presently handling only 10-12 percent of total milk production in the country. The target and achievements of milk production, procurement and processing in cooperative sector by the end of VIII Five year plan are given in Annexure II. Thus it indicates, there is a wide scope for processing of milk and manufacture of milk products for domestic consumption as well as export. 3. EXPORT PERFORMANCE Dairy products form one of the fastest growing segments in the livestock product export. The major products exported are malted milk foods, ghee and cheese (to some extent) to the countries like Bangladesh, UAE, Nepal, Sri Lanka, Bahrain and Oman. The export performance during the years 198081 to 1995-96 are given in Annexure III. 4. EXPORT POTENTIAL AND MARKETS Bangladesh, United Arab Emirates, Nepal, Sri Lanka and Oman are the potential countries for export of malted milk products, butter and ghee. The export of milk and milk products to currently existing markets would increase to Rs.285 million and to new markets to Rs. 155 million. Thus the exports is likely to touch Rs.440 million (APEDA estimates) by the turn of the century. The GATT agreement further gave a boost to the dairy industry, as India has a comparative cost advantage in regard to milk production. NABARD has been actively involved in credit disbursement in number of schemes in dairy sector. It also encourages development of new products through its research and development funds besides guiding various entrepreneurs in new areas of business and technology. 5. OBJECTIVES OF THE PROJECT The financial assistance is extended for processing of milk with the following objectives. i) To enhance the keeping quality of milk and also to avoid economic losses to farmers. ii) For manufacturing various milk products to make it available for the domestic market as well as for export markets. 6. TYPE OF PROJECTS The type of milk processing projects that are normally considered for financial assistance are:

1 Land and Location: i) Ample space is required for buildings. toned and double toned milk) and supplying them to the consumers. corporate bodies and cooperative societies/unions. About two acres of land is required for a milk processing plant handling about 10000 liters of milk per day (8 hours). 9. cheese. services. chilling the milk to 3-4 degree Celsius and transporting to the main dairy for further processing and manufacture of products. future expansion. However the built up area to total area should be around 1:3 ratio. ii) The location of a plant should be close to the milk producing area in case of products manufacturing unit and if liquid milk is the main product it should be close to the consumer. it is limited in East and North Eastern parts of the country because of under utilization of existing processing capacities. PROJECT DETAILS 9. iv) The subsoil of the site should be firm with proper drainage. 9.i) Milk Chilling plants: It involves collection of milk from the villages. etc.. 8.2 Site Development:i) Preferably the entire site should be fenced with barbed wire or compound wall is constructed with gates at suitable places. chilling. such as water. pasteurization. POTENTIAL AREAS: The scope for financing milk processing activities exists in the entire country. Composite Milk Processing Plants : The project involves the collection of milk and processing into market milk and products like milk powder. butter. . homogenization. partnership firms. ghee. electricity and effluent mains. packing of milk of various brands (whole. The surplus fat is converted into ghee or table butter or sold as cream to bakeries. parking of transport vehicles and for empty cans. 7. iii) The location of site should have proximity to road/rail facilities. standard. low milk production and scatteredness of production base. social infrastructure. companies. etc. ii). However. BENEFICIARIES The beneficiaries may be individuals. Market Milk Plants: It involves procurement of milk from the villages. iii).

000 litres capacity plant are given in Statement 3. 9. Samarpan Fabricators . average milk yield. the quantity of milk handled and the equipment chosen for services and product manufacturing.. processing. Most of the dairy machinery are manufactured in the country by ALFA-LAVAL.2 Utilities:i) Power: .1 Raw Material: The principal raw material is milk. The total covered area depends on the processes involved.7 Infrastructural Facilities for Raw Material and Utilities 9. quarters.3 Layout and Buildings:The civil works comprises of factory building. security post etc. Ltd. percentage of animals in milk. L&T. The flow diagram for a 10. area of building is required for handling 10000 liters of milk. transportation of milk and input supply to the farmers is required to be highlighted. The method of procurement. products manufactured. their specifications. disinfectants and consumable should be ascertained. marketed surplus . Goma Engineering Ltd.ft. garages.. About 4000 sq.6 Manufacturing Process:The operations involved in the manufacturing process should be given in the form of a flow diagram. quantity and costs for 10. milch animal population . packing and storage of milk products should be as per the BIS. 9. HMT. office. The machinery should be as per the BIS. 9.ii) Internal roads should be of tar/bricks/WBM depending upon the soil conditions. country and term of agreement is required to be mentioned. technical know-how for manufacture or marketing of products.4 Plant and Machinery: The sectionwise equipment required.7. name of the firm. The extent of milk shed area. The availability of other inputs such as packing materials.000 litre per day milk processing plant is furnished in the Annexure V for guidance. 9. quality control. The essential sections of a milk processing plant are given in Annexure IV. The layout plans for a plant of 10000 liters per day is given in Figure 1 . Nichrome Pvt. The factory building for the milk reception. 9. If any such collaboration arrangement is there. etc. rainfall and the number of vehicles moving every day.7. 9.etc will determine the size of the plant.5 Technical Collaboration:Normally the technical collaboration may be for supply of machinery.

quantity available and suitability for the purpose has to be mentioned). iv) Fuel: LDO/coal/gas requirement and the availability to be ascertained. Accordingly . source of supply. v) Compressed Air: It will be required for various pneumatic operations flow control operations as well as for cleaning purposes. The number of vehicles required.8 Manpower: . the requirement of vehicles may be considered in the project cost. the water softening plant may be considered. The power requirement depends upon the load to be connected and the necessary approval from SEB should be obtained for connection. ii) Water: A milk processing plant requires the water in the ratio of 2:1 (2 liters of water for 1 liter of milk processed) for cleaning of equipment. viii) Communication: Proper communication facilities is essential. the size of the well is required to be designed and depends on the quality of water. The total requirement of compressed air and the capacity of the compressors is required to be furnished. Depending upon the position of power supply. Depending upon the need. rental charges etc. need to be furnished. 9. vi) Vehicles : The vehicles required for procurement and distribution of milk depends on the quantity of milk to be handled. iii) 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. vii) Other Services: Although a maintenance workshop is an integral part of milk processing for carrying out repairs and maintenance of equipment. cold storage and drinking purposes (source of water supply.Normally a three phase electricity supply is required for milk processing plants. standby generators may be considered for connecting the essential sections.

Detailed market survey report is required to be submitted. 10.14.116. CAPITAL COST OF PROJECT: Broadly the capital cost includes the cost of land.581 lakhs.9 Environmental Aspects and Pollution Control: There are no hazardous effluents generated from a milk processing plant. godowns. 2. etc. internal roads. composition in terms of fat and SNF and costing should be indicated. Rs. Salient features of 10000 litre model milk processing plant is given in Statement 1.37 lakhs of margin money for working capital. preliminary and preoperative expenses. 9. 4.13 Business Prospects: It involves the present demand-supply for various products.38 lakhs on plant and machinery . 11.11 Products The major products and by products proposed to be manufactured along with quantities. deposits & preliminary and preoperative expenses.50 on vehicles. the proposed net work and the advertisement plans should be furnished.10 Schedule of Implementation The activity wise schedule of implementation is to be given in the project. 9. Rs. 9. 64.57 lakhs of contingency and Rs.4. civil works (Plant building. The final effluent should meet the requirements of Pollution Control Board and is necessary to get clearance from them. quarters. etc. type of arrangements for distribution and sales.While selecting the site. Rs. office. margin money for working capital. fixed assets.22.43 lakhs on account of misc. 3.). commission and additional incentive to be given.81 lakhs on land and land development .Capital cost of a model dairy processing plant with capacity to process 10000 litres per day works out to Rs. The product wise quantities and countries where it is to be exported need to be mentioned. The details of project cost are furnished in statement 3. the availability of manpower should be looked into and the total requirement of manpower depends on the operations involved and the quantity of milk handled. plant and machinery. Rs. The detailed assessment of working capital and extent capitalised as margin money on working capital are presented in statement 2. development of land. construction of effluent treatment plant is necessary in case of multiproduct large size plants for treating the effluents before discharging for proper disposal. fencing. The project cost comprises of Rs. The company projections for the next 3-5 years and the basis for projection may have to be furnished. For a plant handling 10000 liters of milk per day the manpower required is given in Annexure VI 9.12 Marketing and Selling Arrangements The market for the product (domestic and export). However. gap in supply and expected demand for various products. Rs. ECONOMICS OF THE PROJECT .52 lakhs on civil structures. 9. The major competitors and their present share is to be ascertained.

profit before tax was estimated and income tax was considered @35% as per the existing rates . LENDING TERMS AND OTHER REQUIREMENTS: 14. The items of income includes sale of liquid milk. The details of the cash flow analysis (without considering income tax) is given in statement 8. On post tax income the FRR of the project is worked out as shown in statement 9. insurance. 14.75 lakhs and IRR is more than 50%. 14. 13. FINANCIAL ASSISTANCE The projects on milk processing including manufacturing of milk products would be considered for refinance support by National Bank. The income as well as expenditure for each year has to be worked out and then it should be subjected to cash flow analysis. 134. The entire bank loan can be repayable in six years including one year grace period during which only interest will be recovered (statement 10).4 Repayment Period: Depends upon the gross surplus generated. For the model diary processing plant of 10000 litres per day. Net Present Worth (NPW) and Internal/financial rate of return (IRR/FRR) has to be worked out for the project. NPW is Rs. . the economics of the project has to be worked out for the project period or till the repayment of bank loan. 12. while the expenditure includes the cost of raw material.2 Interest Rate: Interest rate will be determined by RBI/NABARD from time to time. fuel packing distribution. 14. NABARD could consider providing margin money assistance in suitable cases. it may be upto 8 years with first one/two years as the grace period.12:1. advertisement and other overheads.Based on the various techno-economic parameters. the relevant techno-economic parameters are furnished in statement 4. The methodology for estimating the income and expenditure is given in statement 5 and 6 respectively. FINANCIAL ANALYSIS: The cash flow statement covering the Benefit Cost Ratio (BCR). For arriving at the tax liabilities. milk products and miscellaneous items. 14. wages and salary. the BCR is 1. Therefore. NPW should be positive and IRR/FRR should be greater than 15%.3 Security: As stipulated by the RBI. power. all participating banks may consider financing this activity subject to their technical feasibility. financial viability and bankability . transportation and commission. For the model project under consideration. The depreciation schedules on straight line method and written down value are worked out (statement 7).1 Margin Money: The promoters/company should normally meet 25% of the project cost out of their own resources. However. Normally the BCR should be greater than 1. repairs and maintenance.

12 : 1 Rs. Statement 1 Project at a glance for 10000 litres model milk processing plant 1 2 3 4 5 6 7 8 Land requirement Milk handling capacity Products to be manufactured Market Cost of the project Bank loan Margin money (Down payment) Financial viability ( at 15% D F ) BC R NPW IRR FRR ( Considering income tax liability) Repayment 2 acres 10000 liters/day Toned milk. 116. Gee Domestic Rs.No.14.581 laches Rs.5 Refinance Assistance: NABARD provides refinance assistance as per the existing pattern from time to time. Standard milk.436 laches Rs. 87.) Years . Cream. 29. 15.145 laches 1. CHECK LIST: A check list of various points to be considered for feasibility of the project is appended. Particulars Unit Period cost days (Rs.134.75 lakhs > 50% >50% 6 years with one year grace period 9 Statement 2 CALCULATION OF MARGIN MONEY ON WORKING CAPITAL (Rs. in lakhs) Sr.

00 1 30 30 30 1 1 10 30 7 7 III onwards 90% 0. second year and third year onwards respectively on assuming 40% of power and fuel charges and repairs and maintenance. Statement 3 CAPITAL COST OF THE PROJECT Sr.798 7.523 15.I 70% 0.377 1.370 7.00 40.00 10.450 0.504 0. spaces and fuel** Finished goods Toned Milk Standard Milk Saleable Cream Saleable Ghee Receivables Total ( 1 to 6) Less sundry creditors (days) Total working capital required Margin money @ 25% of working capital Bank Cash credit Interest on working capital @ 16% 7.840 0.624 0. In lakhs) 4 5 6 1 2 3 .479 2.220 0.763 8.670 13. Note : 1.564 ** Outlay on stores and spares is considered @ Rs.250 0.147 0.17.960 0.052 2.0.189 0. Rs.07 -9.0. Particulars Specification Quantity Unit Cost Total (Rs) Cost (Rs. (statement 5).405 0.914 13.569 II 80% 0.394 0.400 6.702 1.822 9.301 3.00 40.15 per litre during first year.40 0.368 11.577 6. No.950 4.259 9.686 5.546 0.326 1 2 3 4 5 6 Stock in progress Packing material Chemicals & detergents Stores.080 0.026 3.289 1.399 0.0.110 0.80 0.420 4. 2. It is assumed that payment to the producers are made once in a week. Rs. Interest on working capital during first year is considered for 6 months only.280 0.540 6.452 17.168 0.19.408 0.460 5.

pump) Total B) CIVIL WORKS i) Dairy plant building -brick wall Steel WBM -- 2 acres 424 RM 2 --- 78000/acre 165/RM 15000 each LS LS 1.46 3. tank.G.00 2.50 1.ft.7 7.000 LS LS LS LS 3.82 6.ft.500 1.76.00 15.08 14. --450 sq.50 RCC ACC ii) iii) iv) v) C) i) ii) iii) iv) v) vi) vii) viii) ix) x) xi) xii) xiii) xiv) xv) xvi) xvii) xviii) xix) E T Tanks Condenser tank Superviser quarters Workers quarters Total PLANT AND MACHINERY Can conveying and washing system Weigh scale Dump tank and accessories Detergent tank Milk chiller Cream Separator Milk pasteuriser Storage tanks S S tanks Packaging machine & accessories Ghee boiler Ghee storage tank Boiler & accessories D.56 0. -500 kg 1000 lts -3000-5000lph 2000-5000 lph 5000 lph 10.500 3.97 5. 180/sq.20 2.99 5.00 2.12 1.A) i) ii) iii) iv) vi) LAND AND SITE DEVELOPMENT Land (including registration charges) Development charges Gates Land leveling and roads Water Supply (borewell.81 9.13.18.70 0.76 0. LS LS 250/sq.000 99.31 0.75 4. 600 sq.5KVA ------ -2 1 1 1 1 1 2 1 1 1 1 1 1 -1 set 4 --- LS 1.38 0.36 0.30 0.02 1.ft.000 75.21 3.59 0.ft.23 2.57 1.19. set Refrigeration equipment Electrical panels & cables Pumps S S pipes & fittings Erection & commissioning --ACC ACC 3000 sq.000 LS LS LS LS 30.ft 1000 sq.75 0.ft.ft.000 LS LS . 300/sq.000 lts 300 lts 2500 pph 500 kg 1000 lts 300 kg/h 62.14 1.00 0. 200/sq.52 1.76 3.000 59.ft.

20 -40 lts (plastic) ---------500 ----LS LS LS 3000/centre LS 600 LS LS LS LS 0.28 3.60 1 1 3. plant & machinery and misc.000 --- --- LS LS i) ii) iii) iv) v) vi) vii) viii) H) 0.50 0.25 0.3 1.38 4.25 0.25 0.20 12.20 0.60 0.50 9.000 25.50 0.00 1.25 3.38 -Pentium -Centrifuge.50 0.25.25 0.35 0. butyr.45 3. fixed assets ) 64.57 .30 4.52 2.00 0. FIXED ASSETS Furniture Computer Fire fighting equipment Collection centre equipment Work table Milk cans Crate conveying system & trolleys Lab equipment Effluent treatment plant Water softener Total VEHICLES Jeep Mahindra Scooter Bajaj Total DEPOSITS State electricity board Telephone Total PRELIMINARY & PREOPERATIVE EXPENSES Incorporation of company Project preparation Market survey Establishment ( Salary & wages ) Travelling Consultancy Administrative expenses Interest during construction Total CONTINGENCY ( @ 5% of cost of buildings.00 2.50 3.D) i) ii) iii) iv) v) vi) vii) viii) ix) x) E) i) ii) F) i) ii) Total MISC.73 0.10 0.

40 0.60 5600 2800 555 135 . /litre Rs.73 0.07 9. /litre Rs.74 7.40 0./ yr Rs. Repairs and maintenance 13. Over heads (incl.58 TECHNO ECONOMIC PARAMETERS YEARS II 80 8000 365 29.No Particulars 1.60 4375 2200 390 100 III onwards 90 9000 365 32. Rs. /litre litres /day litres /day litres /day litres /day I 10000 70 7000 182 12.2 ) J) GRAND TOTAL ( A+B+C+D+E+F+G+H ) Statement 4 I) 2. No. Salaries and wages 12.20 0.07 9. Raw material – Milk 5.05 0.05 0.20 7.12 0.85 7.40 0.37 0. Transportation charges 8.20 0. Product mix i) Toned milk (3% fat) Ii) Standard milk (4.MARGIN MONEY FOR WORKING CAPITAL ( 25% of first year's requirement statement .20 0. Packing material 10. Installed capacity 2.12 0.33 0. Capacity utilisation 3.40 0. Cost price of milk 6.49 0.40 0. of Working days 4. /litre Lakhs Rs. /litre Rs.40 0.07 4.12 0. /litre Rs.20 0.60 5000 2500 460 115 S. /litre Rs. Of insurance) 14.05 0. /litre Rs. Commission on milk collection 7. Milk distribution cost 15.20 0.49 0. Chemicals & detergents 11.20 0.42 0.5% fat) Iii) Cream (50% fat) Iv) Saleable cream (25% of iii Unit litres /day % Litres lakh litres/yr. /litre Rs.37 116. Power and fuel 9.

00/kg) Total income/day litres/day litres/day litres/day litres/day litres/day kg/day Rs.227 1. Fixed assets Statement 5 Kg/day Rs.00 110.40.No Particulars Unit I 1 2 i) ii) iii) iv) v) 3 i) ii) iii) iv) 4 Milk procured Yield per day Toned milk ( 3% fat ) Standard milk (4. ) Ghee Income per day Toned milk (Rs. /litre Rs. Lakhs Rs.00 10.186 0.00 Straight line method 3 10 10 169 9.approx.00 / litre ) Cream ( Rs.500 0. Lakhs 0.220 0.00 40.00 / litre ) Standard milk ( Rs./kg 142 9.00 10.00/ litre) Ghee ( Rs.040 0.054 0. 10.) v) Ghee 16.450 0.065 Rs.00 10. Selling prices Toned milk Standard milk Cream Ghee 17.00 206 9.156 Years II 8000 5000 2500 460 115 169 0.932 III onwards 9000 5600 2800 555 135 206 0. /litre Rs. 110.00 110.00 40. Lakhs Rs. Depreciation (%) Civil Structures Plant and Machinery Misc.810 .046 0.394 0.00 Written down value method 10 25 33 INCOME PROJECTIONS S.250 0.9.00 40. 5% fat ) Cream ( 50% fat ) Saleable cream ( 25% of iii approx. Lakhs Rs.00 110.280 0. /litre Rs. Lakhs 7000 4375 2200 390 100 142 0.

lakhs 12.733 0.570 6.710 317. 182 days) Rs. 11.740 94.804 11.40.643 3. 5.milk Commission on milk collection Transportation charges Power and fuel (As per statement No.litre Rs.0.140 2.570 10. 9. 8.20/litre Rs. 3.litre -Rs.080 5. PLANT & MACHINERY AND MISC.548 5.492 1.297 Statement 7 DEPRECIATION SCHEDULES OF CIVIL WORKS.529 7.253 YEARS II III onwards 29.460 3.942 19.850 243.20.090 6. 10. 7.0.0. 4.504 17.No Particulars Unit I 1.300 9.e.840 5.840 10.144 388.0.litre Rs.06.07.200 216.40/litre Rs.637 1.579 Statement 6 EXPENDITURE PROJECTIONS S.05. 4) Packing material Chemicals & detergents Salaries and wages(as per statement4) Repairs & maintenance Overheads Milk distribution cost (As per statement 4) Total operational cost Lakh litres/day Rs.0.7.litre Rs.520 284.892 4. FIXED ASSETS Note : The figures corresponding to each year represent end year values for the preceding year.644 125. Statement 8 CASH FLOW ANALYSIS WITHOUT CONSIDERING THE INCOME TAX LIABILITY .351 5.264 32.411 340.548 2.044 9. 2.litre Rs.096 0. In lakhs 147.492 1.5 Income per year (1st year for 6 months i.0.680 2.841 13. Milk processing per year Raw material . 6.276 2.

No.144 -92.726 547.312 431.411 --- 284.75 0.253 239.444 -61.869 0.(Rs. Costs i) Capital cost $ ii) Recurring cost Total cost Benefits i.264 284. fixed assets 114.296 317.579 ---388.501 0.072 186.465 147. Particulars I II Years III to V VI 1.906 -31. in lakhs) Years III IV Sr.625 44.552 0.579 71.536 3 4 Total benefits Net benefits (3-(1+2)) D F at 15% a) P W of costs @ 15% DF b) P W of benefit @ 15% D F 5 6 D F at 50% N P W at 50% D F --147.088 10. 2.212 125.148 BCR = 1.369 24. Particulars I II V VI .283 1.667 0.579 388. Residual value of a) Civil Structures b) Plant & machinery & misc.880 0.904 128.144 --- 317.687 11.756 208. In lakhs) Sr.076 $ The capital cost considered excludes the capitalised margin money on working capital.297 388.797 114.411 340.297 317.095 214.100 257.265 340.432 137. 0. Statement 9 CASH FLOW ANALYSIS ON CONSIDERING THE INCOME TAX LIABILITY (Rs.12:1 NPW = + 134.654 670.296 317.810 IRR is more than 50%.054 55.

On straight line method Civil works Plant and machinery Misc.283 71.242 12.No.564 1.130 1.444 20.579 388.735 0. on Int.250 7.326 1.215 46.215 52.087 8. 5. Income (Statement 5) Operational cost (Statement 6) Gross operating profit Less Interest on term loan @ 16% Interest working capital @ 16% Depr.588 92. 1 2 3 4 i) ii) iii iv. + residual value in last year) Financial rate of return (%) Discount factor @ 45% Discounted financial returns Discount factor @ 50% Discounted financial returns 147.579 125.820 0.176 9.719 0.328 18.263 0.564 0.609 0.072 1.690 -56.583 0.215 61.283 71.806 0.880 71.330 54. 6.903 52.986 21. 8.297 22.812 10.476 22.046 0.108 9.450 0. 9.215 26. 7.431 1.569 1.452 16.096 5.449 17.198 10.283 71.548 46.283 9.711 0.083 0.297 317. on Total cipal Term Wor repay Loan $ king ment capital (4+5+6) Net income Balance left with com pany (8-7) .667 -54.150 0.093 1.158 -82. fixed assets Amortisation of preliminary and preoperative expenses Profit before tax Tax at 35% Net profit Net income available (7+4) Net benefit after tax (capital cost in 1st yr.921 49.046 22.253 284.215 57.951 1.148 51.144 388.579 388.379 34.559 1.264 317.133 52.158 55.135 37.951 54.953 5.828 0. in lakhs) Year Loan outstanding Prin Int.282 0.362 0.297 317.307 12.564 0.054 2.968 0.000 -11.411 340.997 9.636 0.215 -11.394 51.059 6.025 0.985 0.903 4.331 30.148 F R R is more than 50% Statement 10 REPAYMENT SCHEDULE (Rs.528 20.661 16.132 6.579 388.297 317.869 1.791 1.512 18.156 7.695 40.857 3.431 46.226 11.060 0.148 2.296 16.564 1. 10.980 0.

077 64.130 6 0.597 32. 3. Annexure I STATE WISE CATTLE AND BUFFALOES.062 47. 2.148 16. 6.312 3 End of year 80.951 25.250 7.963 27.559 4.429 13.869 2. 7. 4221 22 698 3250 36 4459 4062 8.Total bred 3. Interest on Term loan and Working loan is assumed @ 16% per annum.117 13. $ During the first year the average loan utilisation is considered at 75% of the total amount.816 17. 2411 88 2931 5301 26 1990 543 Buffaloes Milk production Per capita availability 1992-93 1996-97 1994-95 Target 7. MILK PRODUCTION AND PER CAPITA AVAILABILITY OF MILK Population – in thousands (1992 census) Production – in thousand tonnes Availability – in gms.431 28.611 10.564 1. 5. 163 64 80 97 81 280 630 1 1.178 22.312 0. Andhra Pradesh Arunachal Pradesh Assam Bihar Goa Gujarat Haryana 5.276 26.000 16. 2.429 277.429 13. 2632 95 3067 5366 30 2116 702 6.564 1. 221 7 136 65 4 126 159 nous 4. 4.816 16.158 30.550 51. Cattle Cross Indige.588 135.312 5 9. Sr.569 1.000 4 0.976 49.246 30.077 80.1 1 2 3 4 5 6 2 Begining of year 80.246 30.062 47.154 46.940 52. 2.047:1 1. Name of the state No.534 7 8 9 11.812 10. 4729 3 298 2586 20 3130 2220 . 4400 44 740 3390 39 4750 4062 9.979 16.077 64.015 16.564 1.178 D S C R = 2.631 54. Repayment period : 6 years including 1 year grace period.903 23.326 1.321 26. 3.609 12.

9.60 . 16 17 18 19 20 21 22 23 24 25 26 Himachal Pradesh Jammu & Kashmir Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Orissa Punjab Rajasthan Sikkim Tamil Nadu Tripura Uttar Pradesh West Bengal Union Territories GRAND TOTAL 122 251 277 905 89 897 28 10 3 45 262 730 43 16 800 44 648 430 41 6359 602 774 3605 825 8590 4879 147 190 21 71 3965 449 4478 48 2493 255 6297 5256 62 56297 724 1025 3882 1730 8679 5776 175 200 24 116 4227 1179 4521 64 3293 299 6945 5686 103 62656 468 417 2315 110 3501 3201 38 10 3 10 434 2808 4091 1 1552 7 10097 233 174 42456 663 780 3004 2117 5048 4811 64 54 14 46 584 6215 5103 32 3695 38 11321 3250 364 63951 700 900 3260 2370 5205 5200 62 57 18 44 650 7100 5350 34 3867 40 12463 3440 387 68581 332 257 173 192 195 156 89 77 51 92 48 795 296 200 174 35 209 123 80 191 Source : Directorate of Economics and Statistics and State Department of Animal Husbandry and Dairying. 5 Particulars Milk production (million tonnes) Per Capita availability (gm) No. No. 13.1 205 170 74383 122. of Milk sheds No of Dairy Co-operatives Average milk procurement(LLPD) Targets 65 192 191 150000 150 Achievements 70. 4. 12. 2. 14. 15. 11. 10. 1.8. Annexure II DAIRY DEVELOPMENT TARGETS AND ACHIEVEMENTS FOR VIII FIVE YEAR PLAN Sr. 3.

10 Annexure III YEARWISE EXPORT OF DAIRY PRODUCTS Year Quantity(tonnes) Value (Rs. pasteuriser and other related machinery are installed. dump tank etc. .6 Processing capacity(LLPD) 220 265.consisting of can conveyor.04 2. vi) Cold storage-for keeping the milk and milk products before sending to market. can washer. in crore) 1980-81 1985-86 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 Annexure IV ESSENTIAL SECTIONS OF A MILK PROCESSING PLANT The milk processing plant shall have the following essential facilities.99 1.47 40. v) Packing area-for packing of liquid milk and other products. chiller. iii) Storage area.24 8. iv) Products manufacturing area-depends upon the type of products and the quantity of milk handled. ii) Processing Hall .for milk storage tanks.cream separator.37 12.4 11. the required equipment needs to be installed. homogenizer. weighting balance.57 i) Raw Milk Receiption Dock (RMRD) .11 32. 1084 395 604 2643 3800 2031 8957 NA 1.

6.for providing veterinary service.vii) Quality Control Laboratory-for testing the quality of milk and milk products. ix) Waste water treatment plant area-for treating the dairy effluents before releasing to the fields. water treatment plant. 8. etc. Particulars Number Salary/Wages (Rs.No. 2. Plant Manager Procurement officer Field supervisors Processing supervisors Mechanics Driver Watchman Administrative staff Laboratory staff Unskilled labour Total Other perks Total salary and wages 1 1 2 2 2 1 3 3 2 8 25 (40% of the salary Index to Figure 1 S. 10./month) 7500 5000 3000 3000 2000 1500 1500 2000 2000 1500 Total (Rs.P Capacity/ Make 5 mts . x) Quarters and office area-for all the essential staff. generator set.No 1 Particulars Roller conveyor Quantity 1 H. Annexure VI SALARIES AND WAGES Sr. 5. 4. maintenance and store area for spares.year) 90000 60000 72000 72000 48000 18000 54000 48000 48000 144000 678000 271200 949200 1. 7. supply of feed. viii) Utilities area-for installing boiler. xii) Input supply area. 9. fodder seeds. xi) Vehicle parking area-both for the milk procurement and distribution vehicles. 3.

5 1.0 1.0 1.0 2.5 1.0 1000 lts 5000 lph 100 lts 5000 lph 5000 lph 5000 lph 100000 KCal/hr Beacon FK 750 Kirloskar 2500/hr Elgi Kirloskar 1000 lph 200 cans / hr 250 kg/hr 500 kg 5000 lts each .5 2.0 15.5 2.0 1.2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 Dump tank Milk pump Float balance tank Milk pump Simple filter Pasteuriser Holding vessel Control panel Milk transfer pump Hot water generator Hot water pump Electrical panel Remote control panel IBT agitator Ice bank tank IBT coils Liquid separator Chilled water pump Frion Compressor Motor for compressor Frion recoveror Pouch filling machine Air compressor Air cooling unit Cream separator Can steaming block Can scrubber Can wash through Ghee boiler Ghee storage tank Ghee transfer pump Raw milk storage tank 1 1 1 1 1 1 1 1 1 1 set 1 1set 1 1 1 1 1 2 2 2 1 1 1 2 1 1 1 1 1 1 1 2 2.5 3.0 2.0 6.0 1.5 7.6 210 1.