RAJASTHAN AGRICULTURAL COMPETITIVENESS PROJECT
Detailed Project Report on Milk and Milk Products
Prepared by:
AGRI BUSINESS PROMOTION FACILITY
Contents
Chapter 1: Introduction 2 Chapter 2: Process Flow of Milk and Milk Products 16 Chapter 3: Production and processing hubs/ clusters in Rajasthan 25 Chapter 4: Automation in Dairy Processing 26 Chapter 5: Product Benchmarking 31 Chapter 6: Appropriate Technology/ Plant and Machinery for Dairy Processing Unit 51 Chapter 7: Indicative Project Profile for Rajasthan 59 Chapter 8: Method of technology dissemination and adoption 91 Appendix 1: Dairy Technology Suppliers 93
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Chapter 1: Introduction 1.1. Global Scenario Dairy is one of the major segments of this industry, greatly benefited by the emergence of dairy processing as the fastest growing food producing sector in the world. However, over the years, with emerging new markets and technologies, the sector has widened its scope. It has started producing many new items like ready-to-eat and ready-to-cook, food products and frozen products. Milk is one of the most valuable agriculture commodities and most produced across the world. Total production in 2015 was around 806.70 million tonnes(NDDB). Milk contributes 27% to the global value added of livestock and 10% to that of agriculture.
Major 5 Cow milk producing countries (in '000 (MT)
12%
United Staes (91300 ) 36% 14% India (60600) China (35700) Brazil (34300) 14% Germany(31100)
24%
Figure 1: Major 5 Cow Milk producing countries
A steady rise in consumption demand for dairy and allied products has led to higher levels of technology adoption among the major dairy producing countries in the world. With a Compound Annual Growth Rate (CAGR) of 5 percent, the industry is expected to generate revenues worth USD 442.32 billion in 2019. Asia continues to dominate the global dairy market. China, India and countries in South East Asia account for a major portion of the global dairy industry, but milk supply in these regions has not been able to keep pace with the level of growing demand. These markets offer huge potential for dairy companies that are looking to meet the global demand for dairy products.
Table 1: World Dairy Market at a Glance from 2015-2017
Change:2017 over World Dairy Market At Glance 2016 World Balance million tonnes. Milk equiv. 2015 2016 2017 % Total milk production 812.1 819.3 830.5 1.4 Total trade 70 71.1 71.8 1 Supply and Demand Indicators Per Caput Food Consumption World(kg/yr.) 110.5 110.2 111.4 1.1
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Trade-share of production(%) 8.6 8.7 8.6 -0.3
Change: Jan-May 2017 FAO Dairy Price Index 2015 2016 2017 over Jan-May 2016 % 160 154 191 41.7 Source: FAO
During the first part of 2017 (January to May), prices remained generally stable overall, as recovery of milk deliveries in the EU and continued growth in output in the United States lessened supply concerns. Continued recovery in imports by China, following the substantial drop sustained in 2015, is forecast to be the main engine for growth. The increase projected in world milk production is by 177 million tonnes by 2025 (International Dairy Federation)
Apart from a few exceptions in Europe such as Russia and Ukraine, milk production has increased significantly in almost all the countries around the world. Cow milk represents nearly 80 percent of global milk production. As compared to cow milk, buffalo milk is produced in fewer countries; it is estimated that more than 80 percent of the world's total buffalo milk is produced in India and Pakistan.
1.1.1. Major Milk Processing Global Companies
The top five countries in the world which process milk to manufacture various milk products such as chocolates, milk powder, energy bars etc. are Nestle, Lactalis, Danone, Dairy Farmers of India and Fonterra; in order of their market share for milk based products.
Nestle is known for its exceptional products which range from nourishment to snacks. The company is incorporated in the Switzerland and is one of the oldest dairy companies in the world. Lactalis is mainly a family run corporation in Laval, France, and is known for the best cheese in the world. It has established a name in the dairy industry with its exquisite milk products. Danone is a multinational corporation, which is incorporated in Paris, France. Danone is listed on the stock market of Paris, Euronext Paris and deals in over 130 markets worldwide. The Dairy Farmers of America Inc. (DFA) consumed 28.1 million tonnes of milk to fulfil its need. The corporation has 15,000 dairy farmers and agriculturists who stake a claim. In 2016, the corporation recorded a turnover of $13.8 billion. The Fonterra Co-dairy company is from New Zealand which is held by the around 11,000 farmers. Their milk intake in the year 2016 stood to a whopping 22.1 million tonne with a turnover of $13.1 billion.
1st 2nd
3rd 4th 5th
Figure 2: Top Five Milk Processing Companies in the World
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New Zealand exports almost 49 % of the total dairy products manufactured in the world. Germany ranks second in the global dairy products export, with a share of about 18% of global dairy products. Further, Netherlands and France have almost same quantity of global; export which values US$ 1.9 and US$ 1.5 Billion respectively. United States exports dairy products worth 5.50% of the world’s total dairy product manufactured. Major Exporting Countries of Dairy Products
19% New Zealand (US$4.4 billion) Germany (US$2.6 billion)
49% Netherlands (US$1.9 billion) 11% France (US$1.5 billion) United States (US$1.4 billion) 8% Rest countries 7% 6%
Figure 3: Major Exporting Countries of dairy products, 2016
Major Importing Countries with quantity & Value of Dairy Products in 2016 Germany ranks first in the import of dairy products which was US$ 5,991 Million in 2016, followed by Italy with a value of US$ 3,488. China ranks third whose import was valued at US $ 3,371 Million in 2016. Netherland and France ranked fourth & fifth respectively in the import of dairy products in 2016. Major Importing Countries of Dairy Products
4,506,934.00 5,991 2,928,810.00 1,955,686.00 2,488,648.00 1,618,065.00 6,000.00
5,000.00
4,000.00 3,488 3,371 3,345 3,242
3,000.00 (000'MT) 2,000.00
1,000.00
- Germany Italy China Netherland France
Quantity of Import ('000 MT) Value (US $ Million)
Figure 4: Major importing countries of dairy products
1.1.2. Global Opportunities and Challenges in the Dairy Sector
The following table shows the challenges and opportunities for all the stakeholders in the dairy sector i.e. producers, processers and retailers. As it is imperative for the stakeholders to change the dynamics of the sector with the market needs and challenges which originates with it.
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Producers Processors Retailers Opportunities Opportunities Opportunities •Taking advantage of •Innovation on global •Demand for local new technologies scale. produce •Growth of convenience •The professionalization •Safe & secure supply stores. of farming. chain Challenges Challenges Challenges •Adapting offerings tas per consumer demands. •Complementing •Change in farm technology with suitable management. •Use of expensive process. •Adapting to more technology in analysing purchasing behaviour. •Enhancement of informed consumer. commercial skills. •Demand for organic and •Lack of skilled GM-free products. labours
Figure 5: Opportunities and Challenges for Stakeholders in Dairy sector 1.2. Indian Scenario
India now has indisputably the world's biggest dairy industry — in terms of milk production; In 2017, India produced close to 165 million tons of milk, India also produces the biggest directory or encyclopaedia of any world dairy industry. The dairy sector in the India has shown remarkable development in the past decade and India has now become one of the largest producers of milk and value-added milk products in the world.
The major Milk production zones in India are Uttar Pradesh, Maharashtra, Himachal Pradesh, Madhya Pradesh, Punjab, Rajasthan, Tamil Nadu are the major production area of Dairy Products in India.
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Major Five Milk Producing States in India in 2015- 16
Uttar Pradesh (23.33 Million 14% Tonnes)
33% Rajasthan (13.90 Million Tonnes) 15% Andhra Pradesh (18.22Million Tonnes) Gujarat (14.72 Million Tonnes)
18% Panjab (13.87 Million Tonnes) 20%
Figure 6: Major Five Milk Producing States in India in 2015-16
Production and Per Capita Availability of Milk
2016-2017 355 170 165.4 360 337 160 155.5 146.3 322 340 150
140 320 gram./day In In '000 MT 130 300 2014-2015 2015-2016 2016-2017 Years
Production(In Million Tonnes) Per Capita Availability(gram./day)
Figure 7: Milk Production & Per Capita Availability In India (2016-17) Source: Department of Animal Husbandry, Dairying & Fisheries
The Indian dairy industry is divided into the organized and unorganized segment. The unorganized segment consists of traditional milkmen, vendors and self-consumption at home and the organized segment consists of cooperatives and private dairies. As per the Annual Report for FY17of Dept. of Animal Husbandry, Dairying & Fisheries, Ministry of Agriculture & Farmers Welfare, GOI, co-Operatives & private dairies still procure only about 20% of the milk produced in the country, while 34% is sold in the unorganized market and about 46% is consumed locally. However, in most of the developed nations, 90%of the surplus milk is processed through organized sector.
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Indian Dairy Industry
Oraganized Unorganized Sector Sector
Private Milkmen/ Self Co-operatives Companies Local Consumption 10% 10% Vendors 34% 46%
Figure 8: Structure of an India Dairy Industry
There is immense room for the organized sector to gain market share of marketable milk from unorganized sector by introducing standardization in milk quality testing and transparency in computing remuneration being paid to farmers for their milk along with educating farmers on best dairy and animal husbandry practices. This could also dovetail well with the shift of consumer preference from unorganized to organized market. As per the Department of Animal Husbandry, Dairying and Fisheries, the organized milk handling is expected to grow from 20% at present to 50% by 2022-23.
In India, animal husbandry and dairying are important economic activities accounting for approximately 33 percent of the agricultural Gross Domestic Product (GDP). India is the largest producer of milk having achieved an annual production of 165.4 million tonnes in 2016-17. As the economy grows and income increases, a World Bank study points out, per capita consumption for milk and milk products in the country is projected to rise to more than 350 grams per day by 2020. The major Milk production sector are Uttar Pradesh, Rajasthan, Madhya Pradesh, Gujarat and Andhra Pradesh are the major production area of Dairy Products in India. India’s milk production is expected to reach 180 million MT by 2020, from the current 163.7 million MT, while NDDB has projected demand to touch 200 million MT. The Indian dairy market is amongst the largest and fastest growing markets in the world. India has attained the top position in milk production globally, owing to a huge bovine population. However, the full potential of Indian milch herd still remains unattained. Per capita availability of milk in India has reached 352 grams per day. An important milestone in the significant growth of the dairy sector in the past decades has been a series of ‘Operation Flood Programs’ spearheaded by the National Dairy Development Board (NDDB) through promotion of dairy cooperatives across the country. In addition, the World Bank funded National Dairy Plan 1 (NDP) run by the NDDB for the period 2011-12 to 2017-18, is a scientifically planned multi-state initiative. It aims at increasing the productivity of milch animals and providing rural milk producers greater access to the organized milk-processing sector. It is estimated that only 30 percent of the marketable surplus is sold to the organized sector. Small producers in rural areas, who account for 70 percent of milk production, are particularly affected. Milk is one of the most important and most consumed commodity in India, and with considerable growth in population the production of milk has also increased due to the demand. This sector is divided into two i.e. Organized Sector and Unorganized Sector. Unorganized sector is the milk that is sold by milkmen (largely based in villages and small towns), vendors who collect the milk from local producers and sell it directly to households and to sweet shops in both urban and rural areas. On the other hand, the organized dairy sector represents milk that is processed using modern infrastructure and marketed through the organized channels under their own brand names such as Amul, Mother Diary, and Parag Dairy etc.
India’s dairy exports mainly include NFDM, fats and oils derived from milk, cheese, lactose products, casein, butter, and ice-cream to countries such as Bangladesh, Pakistan, Nepal, Afghanistan, Bhutan, United Arab Emirates, United States and Singapore. In CY 2016, India’s dairy exports were valued at
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$172 million, up five percent in comparison to previous year. From CY 2011 to CY 2016, India’s dairy exports value increased at a compound annual growth rate of 10.1 percent. India's Export of dairy products were 39,397.62 MT of the world’s total, worth Rs. 910.44 crores during the year 2016-17(APEDA). The graph below shows the top ten countries where India export its dairy products.i
Export from India of Dairy Products 2016-17
Quantity of Export ('000 MT) Value (US $ Million)
20,322.35
12,459.53 10,923.45 8,521.93 7,092.68 7,264.83 5,733.87 4,362.75 4,364.67 5,055.48
U Arab Emts Bangladesh Pr Bhutan Pakistan Ir Nepal
Figure 9: Export from India of Dairy Products
United Arab Emirates imported maximum dairy products in 2016-17 followed by Bangladesh which ranked second and imported dairy products worth about US$ 12,459.53 Million from India. Also, Bhutan, Pakistan and Nepal among the major countries importing.
1.2.1. Major Indian companies in Dairy Products
Amul is the top dairy company in the country. Established in 1946 by Verghese Kurien (founder-chairman of the GCMMF). Mother Dairy is a well-known dairy based company in India. The organization was established in 1974 by National Dairy Development Board (NDDB) and has over 6 manufacturing plants. Kwality Limited is a company which was established in 1992 and acquired by Dhingra Family in 2002. The federation offers Milk & Milk Products, Horticulture Products, Kandhamal Organic Products and a lot more. One of the most famous industries in Orissa, Orissa State Cooperative Milk Producers Federation (OMFED), is a well-known diary maker in country which was established in 1985. Andhra Pradesh Dairy Development Cooperative Federation Ltd.is located in Lalapet, Hyderabad.
Table 2: Top 5 Indian companies in dairy products
Name of the Rank Company Main Products
1st Amul Milk, Butter, Ghee, Milk Powder, Chocolate, Paneer, Curd
2nd Mother Dairy Milk, Ice- Creams, Dahl, Lassi and Flavoured Milk
3rd Kwality Limited Milk, Ghee, Curd, Lassi, Paneer and Ice Cream
Toned Milk, Ghee, Curd, Cheese, Lassi, Butter and Ice Cream 4th OMFED etc.
5th1 APDDCF Milk, Curd, Paneer and Ghee under brand name Vijaya
1 Source: http://www.trendingtopmost.com
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1.2.2. Emerging value-added categories
During the last five to ten years, India has seen dramatic shift towards consumption of value-added products such as cheese, yoghurt, UHT (ultra-heat treatment) milk, flavoured milk, and whey. To tap the advantages of the changing consumer food preferences, most organized players are expanding product Ratings I Indian Dairy Industry -driven by value added products and portfolios in the value-added segment. This segment offers high growth potential and better margins versus the liquid milk and Skimmed Milk Powder (SMP) segment.
Figure 10: Average EBITDA margin for the value added products across categories, 2017
1.2.3. Current Market Scenario of Milk and Milk Products Rising Urbanization Propelling Value‐Added Products
Increasing preference for value‐added products in India: In recent times, value‐added products (VADP) have been gaining preference among customers due to apparent changes in demographic and dietary patterns. The share of value‐added products has gradually increased and now stands at 34% of total industry. However, contribution of milk and skimmed milk powder (SMP) combined stands at ~66% of industry sales.
Indian dairy industry split (2016) – Value Added Products comprises just 34% of share
SMP UHT MILK Cheese Others Butter 1% 1% 1% 2% 4% Curd 5% Paneer 7%
Ghee 15% Liquid Milk 64%
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Indian dairy industry can be classified into commodity dairy products like: 1) Raw milk; 2) Skimmed milk powders (SMP); and 3) Dairy whiteners (DW) which are low margin products. Further, milk products like curd, buttermilk, ghee, butter, ice cream and paneer can be classified as traditional value‐added products which have a huge unorganised market and driven by increasing nuclearisation of families.
With improving macroeconomic trends like rising consumerism, India is witnessing increasing consumption of emerging value‐added products like UHT milk, cheese, flavoured milk, yogurt, Lassi, whey, etc. These are hugely underpenetrated categories.
In 2004, Dairy Australia Seminar Series, a review of the epidemiological evidence on milk and cardiovascular disease, showed that milk drinkers have a reduced risk of cardiovascular disease (CVD) compared to those who drink little or no milk, despite the fact that most of the milk drank was regular fat milk. The review further concluded that there was no evidence of an increase in vascular disease; rather, the incidence of stroke and heart disease was about 15% lower in the subjects with the highest intakes of milk. Evidence from cohort studies suggests that though milk consumption raises cholesterol level, milk is protective against vascular disease. The biggest setback to using milk and dairy products is that the public in general, and teenagers and women in particular, tend to avoid milk and dairy products because of their fat content. A 300 ml glass of full cream milk contains 10 g of fat, of which 6.3 g is saturated fat, and can contribute about 770 kJ of energy. In contrast, a 300 ml glass of skim milk only contains 0.6 g of fat (a reduction of 94%), 0.3 g of saturated fat, and 440 kJ (a reduction of 43%). Therefore, consuming skim milk and low fat yoghurt instead of whole milk will allay the fear of health risks associated with dairy fat.
Milk Production for 2017-18 (million tonnes) World 830 India 164 Unorganised players 133 organised players 31* Co-operatives 17 Private 14 Source: NDDB *Co-ops + Private
Evolution of key categories ‐ Consumption of value‐added products on the rise
Currently, due to conventional culture, commodity dairy products like liquid milk and SMP contribute ~66% of total dairy industry, followed by traditional dairy products (ghee, paneer, curd, buttermilk, butter and ice‐cream) forming ~32%, and emerging (cheese, whey, UHT, flavoured milk, yogurt) accounting for mere ~2% of market.
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Ergo, there is humungous growth opportunity in traditional milk products like ghee, curd and paneer due to large industry size and unorganised presence, which we expect will lead to strong 20% CAGR in organised players in these segments over 2016‐20E. Emerging value‐added products like UHT milk, flavoured milk, cheese and whey have highly organised market presence, but are hugely underpenetrated (small market size) which we believe will lead to strong 25% CAGR in growth for these segments over 2016‐20E.
Humungous opportunity for organised segment led by high market growth, low penetration of Value Added Products
Competitive Edge of Players
Strong procurement infrastructure, key to success: Companies with infrastructure for direct milk procurement from farmers enjoy huge competitive edge as it assures steady milk supply and consistency in milk quality at relatively lower prices. Heritage at ~95%, Hatsun ~100%, Parag ~80% and Amul at 100% score high in terms of direct procurement and diversifying over the years.
Right product mix of milk and high‐growth Value Added Products: A right mix of milk ‐ Value Added Products helps maximise growth, margins and return ratios. Companies with high milk sales (Heritage and Hatsun at 65‐70% of sales) have seen their direct procurement network scale up resulting in higher RoCE. It is these players that have been leveraging their established milk brands to expand their Value Added Products share. Value Added Products is an attractive opportunity as: i) These products are poised to grow at higher rate; and ii) Command ~1.5‐2x higher EBITDA margins.
For Heritage, while Value Added Products currently contributes 24% of sales it is well on way to touch 28% levels over FY17‐20E. While Heritage has the best product portfolio with majority of its sales from high‐RoCE fresh dairy products, it is prudently increasing sales of high‐margin Value Added Products. Parag derives ~64% of its sales from Value Added Products, which is expected to go to 70% over FY17‐ 20. Emerging Value Added Products contributes ~27% of sales, however it has been ahead of the curve in these high margin emerging Value Added Products with strong capex already incurred. Ergo, we believe Parag is best placed to capture the advantages of high‐growth emerging Value Added Products, which would offset the initial drag of lower RoCE of Value Added Products like cheese.
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Channel mix ‐ Strong branding and higher B2C sales: Heritage and Hatsun have a strong procurement & distribution network which has led to creation of a strong B2C franchise (>90% of sales) for them. Rising consumption of Value Added Products is seeing players expand their B2C mix. However, there are certain Value Added Products like cheese which is consumed ~50% out of home. Also, categories like butter, paneer and SMP are institutional in nature. Parag is strong in Value Added Products due to its prowess in brand building in Value Added Products and B2C sales account for ~67% of its mix.
Strong branding to scale the value curve: As competition intensifies and companies move up the value curve to Value Added Products, it has become extremely critical to spruce up brand building activities. Examples being national brands like Gowardhan ghee ‐ fetches better realisations and commands brand premium. Parag offers an entire range of cheese products and variants leveraging strength of its core Go cheese brand, while also devising a premiumisation strategy.
Product mix of Indian dairy companies
A mix of high‐RoCE milk segment, and leveraging established milk brands for high growth and margin VADP is a theme prevailing across all Indian dairy companies, who have set their eyes on continuously increasing the share of higher‐margin VADP. These companies include Heritage and Hatsun who derive highest proportion of their revenues from milk (65‐68%), while for others majority of their revenue comes from non‐milk products.
But, milk entails lower margins and scalability hinges on enhancing procurement reach, which takes time to develop. Competition from cooperatives is also getting fiercer. To succeed it has become imperative for players to leverage their procurement to extend into other VADP.
Penetration of organised players in VADP categories is comparatively lower than in liquid milk, with many of these categories in low‐single digit penetration. However, over next 3 years, led by rising income levels, increasing urbanisation and improving dietary habits, emerging (organised) VADP categories are estimated to grow at 25% CAGR.
In the long run, we believe companies with higher share of VADP, strong branding, differentiated products and distribution network for B2C channel will earn higher margins, record higher growth and survive the cooperatives. In our view, Parag has the best scale in VADP at 64% of sales along with strong branding and product mix. Heritage and Hatsun are also moving into traditional VADP, which will lead to better margins and sustain high RoCE.
Revenue mix of Indian dairy players – Heritage, Hatsun strong in fresh milk, Parag best‐in‐class in VADP
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Opportunities in Indian Dairy Industry
As mentioned earlier, India is the world’s largest producer of milk; however, the country’s dairy market is highly fragmented, unorganized and is dominated by local milkmen, regional brands and milk cooperatives. The sector has attracted several investors in the recent years, and has also seen consolidations. Strong producer prices, a promising outlook for dairy consumption and government incentives have been attracting robust investments to the dairy processing sector.
The recent investments by global companies in the Indian Dairy Companies are as under:
Indian Amount (Rs. In Investing Company Company crore) KKR India, the local arm of the New York based buyout Kwality Ltd. 600 firm Tirumala Milk Lactalis 1750 Anik Industries Lactalis 470 Creamline Dairy Godrej Agrovet Ltd. 150 Dodla Dairy Cargill Ventures 110
Table 3: Product wise EBIDTA Margin- VADP generate higher EBITDA Margins
Product EBITDA Margin (%) Milk 3-5 Milk Powder 0-2 Curd 18-22 Paneer 18-22 Ghee 10-15 Butter 5-8 Ice-Cream 15-18 Cheese 14-18 Whey(consumer) 30-35 Flavoured Milk 16-18
1.2.4. Challenges in Milk and Dairy products production in India
However, there are challenges to dairy in India, mostly in the form of rapid urbanization, low interest of younger generation in dairy farming and increasing real estate price that leads to loss of farm lands. Due to these factors, some dairy regions may come under pressure. The preventive measures would be to implement changes in the dairy production to make farming system more competitive. In addition, there is a need to develop infrastructure to enhance production, followed by investment at farm level and improving feeding methods. More importantly, Government could consider giving relaxation in tax on farmer`s income from milk to encourage him to invest in dairy. 1.3. State Scenario In Rajasthan, livestock sector plays major role in improving socio-economic status and fulfilling nutritional needs of rural masses. The state is second highest in milk production in the country. Of the total milk produced, 53 per cent is buffalo milk, 36 per cent is cattle milk and 11 per cent is goat milk. Per capita availability of milk is highest in Jaisalmer district having 1,085 grams of milk per day per person. Approximately, 50 per cent of the milk produced is sold in the market and only 25 per cent is consumed at home as liquid milk. Remaining 25 per cent of the milk produced is converted into milk products. Highest livestock density is in Rajsamand and Dausa district having 292 livestock per square kilometre.
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Year wise goat and bovine milk production of Rajasthan (in '000 MT)
Goat Milk Bovine Milk Total Milk
14563 13941 13234 13512 12330 12238 12783 11644 11842 10882
1448 1590 1670 1703 1780
2006-07 2007-08 2008-09 2009-10 2010-11
Figure 11: Year wise goat and bovine milk production of Rajasthan (in '000 MT) Source: Integrated Sample Survey Reports (2001-02 to 2013-14), Department of Animal Husbandry, Govt. of Rajasthan
Animal Husbandry is a major economic activity of the rural people of Rajasthan, especially in the arid and semi-arid regions. The State faces frequent droughts and famine which causes frequent crop failure as most of the agriculture is rain fed. In this climatic scenario, dairy sector provides sustainable year-round income to large number of farmers. Over a decade, there has been an incremental increase of 3 per cent in number of in-milk bovine with maximum increase in Jaisalmer and Pali districts.
Table 4: District wise milk production of Rajasthan (in '000 MT), 2014 Sr. No. District Bovine Milk Goat Milk Total Milk 1 Ajmer 588 91 679 2 Alwar 1,015 101 1116 3 Banswara 263 33 296 4 Baran 225 20 245 5 Barmer 454 142 596 6 Bharatpur 328 17 345 7 Bhilwara 433 54 487 8 Bikaner 420 67 487 9 Bundi 365 23 388 10 Chittaurgarh 415 40 455 11 Churu 278 80 358 12 Dausa 384 41 425 13 Dhaulpur 176 12 188 14 Dungarpur 217 31 248 15 Ganganagar 519 30 549 16 Hanumangarh 399 27 426 17 Jaipur 1,009 75 1084 18 Jaisalmer 148 107 255 19 Jalor 331 40 371 20 Jhalawar 278 35 313 21 Jhunjhunun 478 70 548
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Sr. No. District Bovine Milk Goat Milk Total Milk 22 Jodhpur 669 116 785 23 Karauli 236 37 273 24 Kota 206 20 226 25 Nagaur 447 122 569 26 Pali 544 70 614 27 Pratapgarh 0 0 0 28 Rajsamand 232 31 263 29 Sawai Madhopur 293 27 320 30 Sikar 628 87 715 31 Sirohi 167 38 205 32 Tonk 267 37 304 33 Udaipur 371 59 430 Total 12,783 1,780 14,563 Source: Integrated Sample Survey Reports (2001-02 to 2013-14), Department of Animal Husbandry, Govt. of Rajasthan
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Chapter 2: Process Flow of Milk and Milk Products
Dairy products are generally defined as food products that are produced from milk. They are rich sources of energy. Raw milk for processing generally comes from cows and buffalo, but occasionally from other mammals such as goats and sheep. Water is the main constituent of milk (about 90%). Milk also contains fat, in the Indian dietary regimen, milk fat in the form of cream, butter and ghee contributes significantly towards nourishment of people of almost all age groups these products are good sources of fat soluble vitamins A, d, e and K. in the ancient Vedic literature it is mentioned that ghee derived from cow milk has got excellent nutritional and tonic qualities especially beneficial to persons convalescing after chronic illness and bone fracture. cream is a fat rich component and has been known from time immemorial as the fatty layer that rises to the top portion of the milk when left undisturbed. cream is sold in many varieties. Although used for several purposes, it is primarily something of a luxury because of its excellent flavour, body and texture.
In this section following few milk and milk product process flow is described:
1. Pouch Milk 2. Curd 3. Paneer 4. Shrikhand 5. Lassi 6. Butter Milk 7. Butter 8. Ghee
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Name of Flow Diagram Process Product Pouch The clean and fresh cow milk having Receiving of Cow acidity less than 0.135% is received and Milk Milk chemical test is conducted on it. It is filtered through nylon and online filter. After filtration milk is chilled below 4° C by using plate heat exchanger, it is Filtration stored in the insulated storage tank to prevent the growth of harmful bacteria. It is standardized to 4.0% milk fat and 8.5% SNF by adding the skimmed milk Chilling or removing excess fat from milk by using online cream separator. It is pasteurized at the temperature 78° C for 16 seconds and immediately chilled Standardization below 4°C store in the insulated storage tank. After the pasteurization process, the quality is confirmed for MBR Test and is packed online automatically through the packing machine. It is then Pasteurization immediately stored in the milk cold room having temperature less than 2°C and it is distributed in the insulated vans to the market as per the schedule. Storage
Checking Quality
Packageing in Pouch
Storage
Distribution
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Name of Flow Diagram Process Product Curd Receiving of Cow Clean and fresh cow milk having acidity Milk less than 0.135% is received and chemical test is conducted. It is filtered through nylon and online filter. After the filtration, milk is chilled below 4° C by Filtration using the plate heat exchanger and then it is store in insulated storage tank to prevent the growth of the harmful bacteria. It is standardized to 3.8% milk Chilling fat and 9.6% SNF by adding the skimmed milk or removing the excess fat from milk by using the online cream separator. It is pasteurized at the Standardization temperature 78° C for 16 seconds and then immediately chilled below 4°C. It is stored in an insulated storage tank after the pasteurization process. The quality is Pasteurization confirmed for MBR Test and is the milk heated in the multipurpose machine for the temperature 80°C for 20 minutes and is chilled at the temperature 40°C. After Storage attaining the temperature change, milk is inoculated by 1% lactic acid culture and is mixed well with the milk by the Checking agitation. It is packed in the cups or the Quality pouches by using the online automatic packing machine. And it is incubated at 42°C for 6 hours to get the solid settled Heating of mass in the cups. It is cooled at 4°C by Milk using the blast cooler to prevent the increase in acidity and then it is stored immediately in the milk cold room having Inculation of temperature less than 2°C. Thereafter it Culture is distributed in the insulated vans to the market as per the schedule. Packing in Cups and Pouches
Incubation
Blast Cooling
Storage in cold room
Distribution
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Name of Flow Diagram Process Product Paneer The clean and fresh cow milk having Receiving of Cow Milk acidity less than 0.135% is received and the chemical test is conducted on it. It is filtered through the nylon and the online Filtration filter. After the filtration process, milk is chilled below 4° C by using the plate heat exchanger. It is stored in the insulated Chilling storage tanks to prevent the growth of the harmful bacteria. It is standardized to 4.0% milk fat and 8.5% SNF by adding Standardization the skimmed milk or removing the excess fat from milk by using the online cream separator. It is pasteurized at the Pasteurization temperature 78°C for 16 seconds and immediately chilled below 4°C store in the insulated storage tank. After the Storage pasteurization, the quality is confirmed for MBR Test and is packed through the online automatic packing machine. Then Checking Quality it is stored immediately in the milk cold room having temperature less than 2°C later it is distributed in the insulated vans Heating of Milk to the market as per the schedule.
Addition of Coagalunt
Collection of Solid Mass in Mould
Pressing
Soaking
Cutting
Packing
Storage in cold room
Distribution
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Name of Flow Diagram Process Product Shrikhand The clean and fresh cow milk having Receiving of Cow Milk acidity less than 0.135% is received and the chemical test is conducted. It is filtered through the nylon and the online Filtration filter. After the filtration, milk is chilled below 4° C by using the plate heat exchanger. Then it is stored in the Chilling insulated storage tanks to prevent the growth of harmful bacteria. Thereby it is Standardization standardized to 3.8% milk fat and 9.6% SNF by adding the skimmed milk or removing the excess fat from milk, by Pasteurization using the online cream separator. Then it is pasteurized at the temperature 78°C for 16 seconds and immediately chilled Storage below 4°C store in the insulated storage tank. After the pasteurization process, the quality is confirmed for MBR Test Checking Quality and is heated in the multipurpose machine for the temperature 80°C for 20 minutes and is chilled at the temperature Heating of Milk 40°C. Milk is inoculated by 1% lactic acid and is mixed well with the milk by agitation. Then it is incubated as it is for 6 hours after setting the curd then it is Inculation of Culture hung in the muslin cloth and kept for 8 hours in the hanging position to remove the whey and become the solid mass as Hanging in musilin chakka. Chakka is kept in the cold room cloth for 12 hours and next day it is kneaded with 70% sugar of chakka, and other additives like mango pulp, nutmeg, ell Collection of Chakka chi, cardamom, colors and flavor also fruit verities as per the market demand and packed in the cups or pouches Additaion of Sugar, Addituage and manually. Then it is kept in the deep kneding freezing temperature less than -15°C and is distributed in the insulated vans to the market as per the schedule. Packing in Cup or Pouch
Storage in Deep Freeze
Distribution
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Name of Flow Diagram Process Product Lassi The clean and fresh cow milk having Receiving of Cow Milk acidity less than 0.135% is achieved after the receiving the other detail chemical test. Then it is filtered through Filtration the nylon and the online filter. After the filtration, the milk is chilled below 4° C by using the plate heat exchanger, then it is Chilling stored in the insulated storage tank to prevent the growth of harmful bacteria. Then it is standardized to 3.8% milk fat Standardization and 9.6% SNF by adding the skimmed milk or removing the excess fat from milk by using the online cream separator. Pasteurization Then it is pasteurized at the temperature 78°C for 16 seconds and immediately chilled below 4°C store in the insulated Storage storage tank. After the pasteurization quality is confirmed for MBR Test and is heated in the multipurpose machine for Checking Quality the temperature 80°C for 20 minutes and is chilled at the temperature 40°C. After attaining the temperature, milk is inoculated by 1% lactic Acid culture and Heating of Milk is mixed well with milk by the agitation. Then it is incubated as it is for 6 hours after setting of the curd, then 7% sugar Inculation of Culture syrup is added and the mixture is agitated with the high speed mixture. It is homogenized along with pasteurized lassi and chilled lassi is stored in the Incubation insulated tank below 4°C. It is packed in the pouches on the automatic packing Addition of Sugar machine or in the cups manually and Syrup then it is keep in cold room temperature less than 2°C and it is distributed in insulated vans to market as per Homoginazation schedule.
Lassi Pasteurization
Storage
Packing in Cups and Pouch
Storage in cold room
Distribution
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Name of Flow Diagram Process Product
Butter Milk Receiving of Cow The Clean and Fresh, Cow Milk having Milk acidity less than 0.135% is received and chemical test is conducted. Then It is filtered through nylon and online filter. Filtration After filtration, milk is chilled below 4° C by using plate heat exchanger and then it is store in an insulated storage tank to Chilling prevent the growth of harmful bacteria. It is standardized to 3.8% milk fat and 9.6% SNF by adding skimmed milk and removing excess fat from milk and by Standardization using online cream separator. It is pasteurized at the temperature 78° C for 16 Seconds and immediately chilled Pasteurization below 4°C store in insulated storage tank. After pasteurization the quality is MBR Tested and is heated in Storage multipurpose machine at a temperature 80°C for 20 minutes and is chilled at a Checking temperature 40°C. After this milk is Quality inoculated by 1% lactic Acid Cultured and is well mix with milk by agitation. It is incubated as it is for 6 hours after setting Heating of Milk the curd and then 1% salt and chilled water is added. And the mixture is Inculation of agitated with the high speed mixture and Culture it is then homogenized along with the butter milk pasteurized. The chilled butter milk is stored in the insulated tank Incubation below 4°C and is packed in the pouches on the automatic packing machine or in Addition of Salt and the cups manually and then it is kept in Child Water the cold room temperature less than 4°C and it is distributed in the insulated vans to the market as per the schedule. Homoginazation
Butter Milk Pasteurization
Storage
Packing in Cups and Pouch
Storage in cold room
Distribution
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Name of Flow Diagram Process Product Butter Firstly, milk is received then the filtration Receiving of Milk is done. The filtered milk is then chilled below 40C and stored for some period of time.
Filteration The milk is then separated into two parts- cream and skim milk.
The cream is pasteurized at 920C and Chilling below 40C then chilled at 80C and ageing at 90C is done for 8 hours. After that churning is done in the butter churner. The churned milk is filtered and then butter milk is Storage removed.
Butter is ready; it is packed and stored at 180C. Seperation
Cream gar
Pateurization at 920C/and chilling at 80C
Ageing 90C for 8 hrs
Churning in Butter churner
Removal of butter milk
Washing
Working
Packaging
Storage below 180C
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Name of Flow Diagram Process Product
Ghee Receiving of Cream Fresh cream is received from separator from Separation is pasteurized at temperature of 90°C for 20 Second and is chilled at 9°C and keep ageing in insulated storage tank for 10 Pasteurization hours, after completion ageing process cream is loaded in butter churn where butter milk is separated where butter milk is separated from cream and solid Storage and Aging mass of butter is form then it is worked to remove remaining butter milk from butter. Butter is melt in melting tank Butter Prepration where curd is removed from settled butter oil, then butter oil is shifted in ghee boiler where it is heated at the Ghee Manufacture temperature 120°C with continues starring, then it is settled for some time, after this process berry is separated at the bottom of ghee boiler. Pure Ghee is Remove of Berrey again settled naturally and cool down to 45°C and is clarified to remove minute berry particles from ghee, then it is Packing in packed in jar/tin/pouch and stored in Tin/Jar/Pouch granulation room where temperature is maintain 19°C for 12 hours, then ghee is Granulation stored at room temperature and distributed as per market schedule.
Store at Room Temperature
Distribution
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Chapter 3: Production and processing hubs/ clusters in Rajasthan Rajasthan is 4th highest milk producing state in India. Within Rajasthan Alwar is ranks 1st followed by Jaipur, Jodhpur, Sikar and Ajmer with production of 11.16 Lakh MT, 10.84 Lakh MT, 7.85 Lakh MT, 7.15 Lakh MT and 6.79 Lakh MT respectively.
Table 5: Top 10 Milk Producing District of Rajasthan
Sr. No. District Milk Production (in ‘000 MT
1 Alwar 1,116 2 Jaipur 1,084 3 Jodhpur 785 4 Sikar 715 5 Ajmer 679 6 Pali 614 7 Barmer 596 8 Nagaur 569 9 Ganganagar 549 10 Jhunjhunun 548
In terms of RACP project cluster districts, Alwar ranks 1st followed by Jaipur, Ajmer, Nagaur and Ganganagar with production of 11.16 Lakh MT, 10.84 Lakh MT, 6.79 Lakh MT, 5.69 Lakh MT and 5.49 Lakh MT respectively. Table 6: Top Milk Producing Cluster Districts of Rajasthan
Sr. No. District Milk Production (in ‘000 MT
1 Alwar 1,116 2 Jaipur 1,084 3 Ajmer 679 4 Nagaur 569 5 Ganganagar 549 6 Bikaner 487 7 Chittorgarh 455 8 Bundi 388 9 Sawai Madhopur 320 10 Jhalawar 313
Source: NDDB – Dairying Profile of Rajasthan
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Chapter 4: Automation in Dairy Processing
The first ideas about fully automating the milking process were generated in the mid-seventies. Cost of labour in several countries was growing and this was one of the main reasons to start the development of automation around milking. The first applications were automatic concentrate feeders. A further step in the automation of milking parlours was the development of automatic cluster removers. In the early eighties, automation in milking parlous was expanded with the development of milk yield recording equipment and sensors to detect udder health problems. All these developments and new milking technology reduces the labour input during milking, resulting in a higher output per man-hour. The final step in the automation development seemed to be the development of automatic teat cup attachment systems. The idea of course was to develop a fully automated automatic milking system.
An Automatic milking system is in use for 24 hours per day, needs adjusted cleaning and cooling procedures, complicates visual control and the milking frequency varies from cow to cow and from day to day.
One of the aspects affected by automatic milking is milk quality. The quality of milk is a very important aspect of milk production. Milk payment systems and consumer acceptance are, to a great extent, based on it. Automatic milking is a fully automated process. Visual control of the milk is not possible as during conventional milking. Therefore, the milk quality needs to be managed in a different manner. Several devices such as sensors for conductivity, color and temperature of the milk, yield measurement and machine on time figures are integrated and inform the farmer on the status of the milk.
In India there are huge numbers of people depends on milk giving animals. Farmers supply milk to Dairies and it reaches to consumers in the form of various milk products like pouch milk, ghee, butter, curd, paneer, milk powder and so on. Actually what happens to the milk, how it is processed? What makes the milk conducive to health? What treatment it receives? And how various milk products are prepared?
Even though with modern automation in place, the need to configure design process itself, specifically looking at methodologies for generating optimal dairy processing
Flow sheets over a range of scales, from raw milk to final product and packaging, are most sought after
Automation is delegation of human control functions to technical equipment for increasing productivity, better quality, increase safety in working conditions reducing manpower & reduced cost. Manufacturing of products under the control of computers and programmable controllers, manufacturing assembly lines as well as stand-alone machine tools (CNC machines) and robotic devices can be used for dairy automation. Programmable Logic Controller (PLC) and Supervisory Control and Data Acquisition (SCADA) in combination attract the need of the project for its capability to provide over all fast and reliable control for large process automation needs.
Automation in various process industries using PLC and SCADA has gained high importance due to efficient & reliable control.
Dairy industry is one area in which automation plays an important role to control, automate and stream line the process. Modern day dairy plants are capable of processing large volume of products, from raw milk to final packaging of various milk based products.
The dairy industry is divided into two main production areas:
1. Primary production of milk in farms 2. Processing of milk The aim of this project is to study the dairy process automation, to suggest any scope of improvement in the milk processing and packaging and to implement them using PLC & SCADA 4.1. Automation
Automation is the use of various control system for operating equipment such as machinery, processes in factories, boilers and heat treating ovens, switching in telephone networks, steering and stabilization of
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ships or aircraft and other applications with minimal or reduced human intervention. Some processes have been completely automated. The biggest benefit of automation is that it saves labour; however, it is also used to save energy and materials and to improve quality, accuracy and precision. The term automation, inspired by the earlier word automatic was not widely used before 1947, when General Motors established the automation department. It was during this time that industry was rapidly adopting feedback controllers, which were introduced in the 1930s. Automation has been achieved by various means including mechanical, hydraulic, pneumatic, electrical, and electronic and computers, usually in combination. Complicated systems, such as modern factories, airplanes and ships typically use all these combined techniques.
Types of Automation a. Feedback Control b. Sequential control and logical sequence control c. Computer control. Different Control Systems Used In Automation a. HMI Controller based control system. b. DCS based Control system. c. PC based control system. d. PLC Based automation system.
4.1.1. Human Machine Interface (HMI)
In complex systems, the human-machine interface is typically computerized. The term Human-computer interface refers to this kind of systems. The engineering of the human-machine interfaces is by considering ergonomics (Human Factors). The corresponding disciplines are Human Factors Engineering (HFE) and Usability Engineering (UE), which is part of Systems Engineering. Tools used for incorporating the human factors in the interface design are developed based on knowledge of computer science, such as computer graphics, operating systems, programming languages. Nowadays, we use the expression Graphical User Interface for Human-Machine Interface on computers, as nearly all of them are now using graphics. Primary methods used in the interface design include prototyping and simulation.
4.1.2. Distributed Control System (DCS)
A distributed control system refers to a control system usually of a manufacturing system, process or any kind of dynamic system, in which the controller elements are not central in location (like the brain) but are distributed throughout the system with each component sub-system controlled by one or more controllers.
4.1.3. PC Based Control System
Compact, low-cost and yet advanced process-control engineering can be achieved based on Programmable Controllers.
4.1.4. PLC Based Automation System
PLC Automation panels are used in Process Control application in industries such as Dairy Industry/ Steel / Aluminium / Wire and Cable / Tyre & Tube / Packaging / Plastic / Polyfilms / Pharmaceuticals / Defence / Automobile / Power Plant / Marine / LPG Gas & Oil / Cement / In fracture / Crane Automation etc.
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4.2. About PLC
A Programmable Logic Controller, PLC or Programmable Controller is a digital computer used for automation of electromechanical processes, such as control of machinery on factory assembly lines, amusement rides, or light fixtures. The abbreviation "PLC" and the term "Programmable Logic Controller" are registered trademarks of the Allen-Bradley Company (Rockwell Automation). PLCs are used in many industries and machines. Unlike general-purpose computers, the PLC is designed for multiple inputs and output arrangements, extended temperature ranges, immunity to electrical noise, and resistance to vibration and impact. In essence, a programmable logic controller reads its input signals and responds to them by turning the output modules on or off. It functions under the classic "if/then" scenario, only on a much more complicated scale since it controls multiple input and output devices, all of which must be responded to immediately and constantly as designated by the user program. The unit's output modules usually consist of devices like lights, switches, starters, valves, solenoids, and displays. Programs to control machine operation are typically stored in battery-backed-up or non-volatile memory. A PLC is an example of a hard real time system since output results must be produced in response to input conditions within a limited time, otherwise unintended operation will result. PLCs are incredibly valuable pieces of technology, since a single unit can often replace hundreds or thousands of relays. Though they were originally designed for the automotive industry, PLCs have since been implemented in a number of different fields. In large part, the automation processes in most modern factories are facilitated by PLCs. These devices are designed to follow their programming instructions precisely, which is especially vital in a factory assembly line setting where a small mistake or miscalculation can result in costly errors. Some PLCs function on a very basic level; others are capable of controlling higher-level, more complicated processes. They can be used for a wide variety of input/output functions and timing applications. They also offer motion control and complex networking capabilities. 4.3. History of PLC
The first PLC can be traced back to 1968 when Bedford Associates, a company in Bedford, MA, developed a device called a Modular Digital Controller for General Motors (GM). The MODICON, as it was known, was developed to help GM eliminate traditional relay-based machine control systems. Because relays are mechanical devices, they have limited lifetimes. They are also cumbersome, especially in large applications where thousands of them may exist. With so many relays to work with, wiring and troubleshooting could be quite complicated.
Since the MODICON was an electronic device, not a mechanical one, it was perfect for GM's requirements, as well as for many other manufacturers and users of control equipment. With less wiring, simpler troubleshooting, and easy programming, PLC technology caught on quickly.
PLCs are often defined as miniature industrial computers that contain hardware and software that is used to perform control functions. A PLC consists of two basic sections: the central processing unit (CPU) and the input/output interface system. The CPU, which controls all PLC activity, can further be broken down into the processor and memory system. The input/output system is physically connected to field devices (e.g., switches, sensors, etc.) and provides the interface between the CPU and the information providers (inputs) and controllable devices (outputs).
PLCs can be divided into at least three categories:
Full size: Full-size, for top level applications requiring fast program execution with very short instruction cycle times. They are capable of supporting several CPUs for multiprocessing to provide more processing power. They offer the TCP/IP communication capability over general purpose networks to the supervisory workstations, and support field bus data transmission with equipment controllers.
Middle Size: Middle-size, intended for industrial automated systems of medium power. They offer a large choice of analog and digital input/output modules. They are usually connected to a field bus on one side
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and to the equipment on the other side; their speed is not an important parameter, the amount of data transferred is small and the average price per function is low
Small or micro-size: Small or micro-size, for direct interface with sensors and actuators. They are very simple electrically and mechanically and are sometimes integrated with the intelligent sensor itself, they are characterized by short reaction times and they transfer a small amount of data.
To operate, the CPU "reads" input data from connected field devices through the use of its input interfaces, and then "executes", or performs the control program that has been stored in its memory system. Programs are typically created in ladder logic, a language that closely resembles a relay-based wiring schematic, and are entered into the CPU's memory prior to operation. Finally, based on the program, the PLC "writes", or updates output devices via the output interfaces. This process, also known as scanning, continues in the same sequence without interruption, and changes only when a change is made to the control program.
As PLC technology has advanced, so have programming languages and communications capabilities, along with many other important features. Today's PLCs offer faster scan times, space efficient high- density input/output systems, and special interfaces to allow non-traditional devices to be attached directly to the PLC. Not only can they communicate with other control systems, they can also perform reporting functions and diagnose their own failures, as well as the failure of a machine or process.
When you consider all of the advances PLCs have made and all the benefits they offer, it's easy to see how they've become a standard in the industry, and why they will most likely continue their success in the future. 4.4. Benefit of PLC
PLC play a vital role in automaton, programmable logic controller device can manage and control entire industry to produce better and quick Response.
A PLC is a digital computer used for automation of industrial processes, like controlling machinery or factory assembly lines. Unlike desktop computers, PLCs are having multiple inputs and outputs, operate under extended temperature ranges, have immunity to electrical noise, and have resistance to vibration and impact. Programs to control machine operation are usually stored in battery-backed or non-volatile memory. The main difference between PLC and other computer is that PLC has multiple inputs and outputs then can do multiple works at moments, you can produce more output quickly. 1. Less cost to implement: For the cost of relays and timers to automate about 3 lines for conveying product from finishing machine to packaging machine, you could pay for a PLC to do the same job. In general, a PLC system would make production more flexible and responsive. 2. Reliability: Relays and Electro-mechanical timers (magnetic control), are susceptible to electrical / mechanical failure. With PLCs the control logic is non-mechanical, (solid state). And with the PLC, you can program extra logic to monitor and test itself for possible failure at no extra cost. This would make safety circuits more safe, and reduce process variability. With PLC control you could increase compatibility with existing equipment, scalability, improving ease of use, and providing a common look and feel. 3. Speed: The PLC can speed up operation of machines that you could not obtain with that old out dated relay logic. Control logic makes decisions more accurate and faster than a human operator could hope to achieve. Timers can be set to hundredths of a second to compensate for external variables, and enhance safety. 4. Greater functionality: PLCs have the ability to compare real-time values and make decisions based on that comparison. They can do complex mathematical functions, and adjust the machine accordingly. The greater functionality allows you to design logic that can automatically adjust for different machine products, thereby reducing downtime for setups and machine change over. 5. Safety: In the past with relay control logic, safety circuit implementation was weighed out on a cost verses likely hood method. In other words, the basic emergency stop button, relying on
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operators to stop the machine before an accident occurred. Usually do to distractions and slow reaction time of humans, the button wasn't pressed until after the damage was done. With PLCs, you can cover 99% of all the possible safety risk, and the only cost is the time it takes to add a few rungs of logic to your program. Safety curtains are about the most expensive item, but well under the cost of an accident. Using the PLC to monitor safety risks is equivalent to having a full time employee watching, but with quicker reaction time than any human. 6. Less downtime: Downtime can be broken down in to two separate areas. Scheduled and non- scheduled. DuPont has been quoted as saying: "Maintenance is the single largest controllable cost opportunity, representing $100-$300 million per year corporate-wide." Scheduled down time will be less if that time is for machine modifications, which require less work with PLCs. Some of the preventive maintenance can be automated through the PLC to even further reduce down time. Unscheduled downtime can be broken down (no pun intended), further into two groups: Troubleshooting and repair. The more complex our systems become, the more beneficial it is to write logic that will not only isolate failures but also indicate potential failures that may occur in the near future. The trouble shooting down time can be reduced by 90%. This is accomplished by utilizing the sensors already in place, to do testing through PLC logic to isolate where trouble is originating. Repair is usually only a fraction of the time it takes to find the problem. It's not uncommon to spend hours tracking down a limit switch that is bent, or a dirty proximity sensor. The cost to find the problem is more expensive than the cost to repair it. With PLCs the cost to find the problem is greatly reduced.
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Chapter 5: Product Benchmarking
5.1. Standard for Milk
This Standard applies to “Species identified milk”, “Mixed Milk” and “Full Cream Milk, Standardised Milk, Toned Milk, Double Toned Milk, or Skimmed Milk” as defined in the regulations Essential Composition and Quality Factors
Raw Material - Raw material used shall be as per the respective definitions in item 1 of this sub- regulation.
Composition – The milk of different classes shall conform to the requirements for milk fat and milk solids-not-fat, independently, according to Class of Milk, Locality or State or Area, with Minimum Milk fat and Minimum Milk Solids- not-fat (SNF). (These have been given in tabular form in the regulations.) Food Additives
Milk shall not contain any food additives:
Except for some dairy products which may contain carry over food additives specified in the Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011:
Provided further that in sterilised milk, the specific food additives permitted in Appendix ‘A’ of these regulations may be used and only within the limits specified. Contaminants, Toxins and Residues
The products shall comply with the Food Safety and Standards (Contaminants, toxins and Residues) Regulations, 2011.
The total urea content in milk shall not be more than 700 ppm. Labelling
The following details shall be declared on the label of pre-packaged milk or otherwise if the milk is not pre-packaged and is offered for sale to the consumer, such declaration shall be given on the container from which milk is offered for sale to the consumer:
If the milk from any milch animal, mixed milk or skimmed milk is offered for sale to the consumer without any heat treatment, the name of the milk shall be declared on the label of pre-packaged milk; or otherwise if the milk is not pre-packaged, the name of the milk shall be declared and mentioned on the container from which milk shall be offered for sale to the consumer and shall be preceded with the term ‘Raw’.
In addition to the labelling requirements mentioned above, the provisions of the Food Safety and Standards (Packaging and Labelling) Regulations, 2011, shall apply to pre-packaged milk
Provided that the list of ingredients may not be declared in descending order of usage since the proportion of ingredients used may require change on a daily basis
Provided further that where ‘reconstituted’ or ‘recombined’ milk is declared in the list of ingredients; their components need not be declared separately. 5.2. Standard for flavour milk
This Standard applies to Flavoured Milk as defined in the regulations. Flavoured milk shall be subjected to heat treatment as provided in General Standards for Milk and Milk Products. Where flavoured milk is dried or concentrated, the dried or concentrated product on addition of prescribed amount of water shall give a product conforming to the requirements of flavoured milk.
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Essential Composition and Quality Factors a. Raw Material
Milk Concentrated and dried milk Milk fat, cream, butter and butter oil Potable water for use in reconstitution or recombination
b. Permitted ingredients
Sugar or other nutritive sweeteners or both; Other non-dairy ingredients like nuts (whole, fragmented or ground), cocoa solids, chocolate, coffee, fruits and vegetables and products thereof including juices, purees, pulps, preparations and preserves derived therefrom, cereals, and cereal products and cereal based extracts, honey, spices, condiments, salt, and other natural flavouring foods and flavours; Potable water.
c. Composition
Flavoured Milk shall have the same minimum percentage of milk fat and milk solids-not-fat as that of the milk, as provided for in the Standard for Milk, from which it is prepared. d. Labelling:
The name of the product shall be ‘Flavoured Milk’. The following details shall be always declared on the label of pre-packaged product or otherwise if the product is not pre-packaged, in respect of the product offered for sale the class of milk as per General Standard for Milk and Milk Products from which it is prepared the heat treatment, as per the General Standard for Milk and Milk Products, to which product has been subjected to In addition to the labelling requirements mentioned above, the provisions of the Food Safety and Standards (Packaging and Labelling) Regulations, 2011, shall apply to pre-packaged products. 5.3. Standard for evaporated or concentrated milk
Evaporated Milk means the product obtained by partial removal of water from milk by heat or any other process which leads to a product of the same composition and characteristics. The fat and protein content of the milk may be adjusted, only to comply with the compositional requirements as given in the regulation by addition or withdrawal of milk constituents in such a way as not to alter the whey protein to casein ratio of the milk being adjusted. Essential Composition and Quality Factors a. Raw materials
Milk and milk powders, cream and cream powders, milk fat products; The following milk products are allowed for protein adjustment purposes, only in product covered by these regulations “Milk retentate” means the product obtained by concentrating milk protein by ultrafiltration of milk, partly skimmed milk, or skimmed milk;
b. Permitted ingredients
Potable water Sodium chloride c. Composition
The product shall conform to the compositional specifications provided in the table below
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Table 7: Standard Composition of Evaporated Milk
Evaporated Evaporated partly Evaporated Evaporated Parameter milk skimmed milk skimmed milk high fat milk 7.5 More than 1 and Milk fat, %, (m/m) 1.0 (maximum) 15.0 (minimum) (minimum) less than 7.5 Milk solids, minimum, %, (m/m) 25.0 20.0 20.0 26.5
Milk protein* in milk solids - not fat, 34.0 34.0 34.0 34.0 minimum, %, (m/m)
Labelling
According to the definitions in item 1 and composition in sub-item (c) of item 2, the name of the food shall be
evaporated milk, or evaporated partly skimmed milk, or evaporated skimmed milk, or evaporated high fat milk, and as appropriate
Provided that the “evaporated partly skimmed milk” may be designated “evaporated semi-skimmed milk” when the content of milk fat is between 4.0 – 4.5 % (m/m) and minimum milk solids is 24% (m/m). 5.4. Standard for Sweetened Condensed Milk
Sweetened Condensed Milk is the product obtained by partial removal of water from milk with the addition of sugar or a combination of sucrose with other sugars, or by any other process which leads to a product of the same composition and characteristics. The fat or protein content or both of the milk may be adjusted, only to comply with the compositional requirements given in the regulation by addition or withdrawal of milk constituents in such a way as not to alter the whey protein to casein ratio of the milk being adjusted.
Essential Composition and Quality Factors
a. Raw materials
Milk and milk powders, cream and cream powders, milk fat products; Lactose (for seeding purposes); Milk products are allowed for protein adjustment purposes like Milk retentate: Milk retentate is the product obtained by concentrating milk protein by processes like ultrafiltration of milk, partly skimmed milk, or skimmed milk.
b. Permitted ingredients
potable water sugar (In this product, sugar is generally considered to be sucrose, but a combination of sucrose with other sugars, consistent with Good Manufacturing Practice, may be used) Sodium chloride.
c. Composition
The product shall conform to the compositional specifications provided in the table below
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Table 8: Standard for Sweetened Condensed Milk
Sweetened Sweetened Sweetened condensed Sweetened condensed Parameter condensed partly condensed skimmed milk skimmed high fat milk milk milk More than 8.0 1.0 16.0 Milk fat, %, (m/m) 1.0 and less (minimum) (maximum) (minimum) than 8.0 Milk solids, minimum, %, (m/m) 28.0 24.0 24.0 -
Milk solid not fat, minimum, %, (m/m) - 20.0 - 14.0
Milk protein in milk solids - not fat, 34.0 34.0 34.0 34.0 minimum, %, (m/m)
d. Labelling
The name of the food shall be
Sweetened condensed milk, or Sweetened condensed partly skimmed milk, or Sweetened condensed skimmed milk, or Sweetened condensed high fat milk, as appropriate:
Provided that the “Sweetened condensed partly skimmed milk” may be designated “Sweetened condensed semi-skimmed milk”, if the content of milk fat is between 4.0 – 4.5 % (m/m) and minimum milk solids is 28 % (m/m);
Sweetened condensed milks which are not suitable for infant feeding shall not contain any instruction of modifying them for infant feeding. 5.5. Standard for Khoa
Khoa by whatever name it is sold such as Khoa or Mawa or any other region specific popular name means the product obtained by partial removal of water from any variant of milk with or without added milk solids by heating under controlled conditions.
Essential Composition and Quality Factors
a. Raw materials
Milk and milk powders, cream and cream powder and milk fat products.
b. Composition
The product shall conform to the compositional specifications provided in the table below
It shall be free from added starch and added sugar. The extracted fat from Khoa shall meet the standards for Reichert Meissl value, Polenske value and Butyro-refractometer reading as prescribed for ghee. Table 9: Standard for Khoa
Parameter Khoa
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Total solids, minimum, %, (m/m) 55.0
Milk fat, minimum, %, (m/m), dry matter basis 30.0
Total ash, maximum, %, (m/m) 6.0
Titratable acidity (as % lactic acid), maximum, % 0.9
Labelling
The name of the food shall be ‘Khoa’ or ‘Mawa’ or any other region specific popular name. 5.6. Standard for Cream and Malai
This Standard applies to Cream and Malai as defined in this regulation and refers to
Cream, Reconstituted cream, Recombined Cream, “Prepared creams” “pre-packaged liquid cream, “whipping cream” “cream packed under pressure” “whipped cream” “fermented/cultured/sour cream” “acidified cream” “Malai”
Essential Composition and Quality Factors
a. Raw Material
All creams, prepared creams and malai Milk, which may have been subjected to mechanical and physical treatments prior to cream processing
Additionally, for creams made by reconstitution or recombination- Butter, milk fat products, milk powders, cream powders, and potable water. The milk product should conform to the relevant Food Safety Standards or Regulations;
Additionally, product that remains after the removal of milk fat by churning milk and cream to manufacture butter and milk fat products (often referred to as buttermilk) and that may have been concentrated or dried.
b. Permitted ingredients
Only those ingredients listed below may be used for the purposes and product categories specified, and only within the limitations specified. The product shall be free from any ingredient foreign to milk except otherwise provided in this standard. For use in products only for which stabilizers or thickeners, or both, are justified. Products derived exclusively from milk or whey and containing 35.0% (m/m) or more of milk protein of any type (including casein and whey protein products and concentrates and any combinations thereof) and milk powders; these products can be used in the same function as thickeners and stabilizers, provided they are added only in amounts functionally necessary not exceeding 20.0 g/kg, taking into account any use of the stabilizers and thickeners permitted as per the Food Safety and Standards (Food Products Standards and Food Additives) Regulation, 2011 Additionally, for use in fermented cream, only- Starter cultures of harmless micro-organisms Additionally, for use in fermented cream and acidified cream, only – Non-animal rennet and other safe and suitable coagulating enzymes to improve texture without achieving enzymatic coagulation Sodium chloride.
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c. Composition
The product shall contain minimum 10.0 per cent (m/m) milk fat. Acidity of the finished products, other than fermented and acidified creams, should not be more than 0.15 % (as lactic acid).
d. Food Additives
For products covered under this standard, specific food additives permitted in Appendix ‘A’ of these regulations may be used and only within the limits specified: Provided that stabilizers, acidity regulators, thickeners and emulsifiers may be used when needed to ensure product stability and integrity of the emulsion, taking into consideration the fat content and durability of the product. With regard to the durability, special consideration should be given to the level of heat treatment applied since some minimally pasteurized products do not require the use of certain additives.
e. Labelling
The name of the food shall be as specified in standards in this regulation as appropriate. However, “pre-packaged liquid cream” may be designated as “cream” and “cream packed under pressure” may be designated by another descriptive term that refers to its nature or intended use or as “Whipped Cream”. The term “prepared cream” should not apply as a designation. The type of cream and the fat content in cream shall be always indicated on the label or in case of non-pre-packaged product; such declaration to be given on the container from which product will be offered for sale to the consumer. Creams which have been manufactured by the recombination or reconstitution of dairy ingredients shall be qualified with the term “Recombined” or “Reconstituted” as appropriate. If the product conforms to the description of malai as given in the standards the name of the product shall be ‘Malai’.
Cream may be labelled according to milk fat content (m/m) along with product name as specified
Low fat cream: Minimum 10 per cent and less than 40 per cent Medium fat cream: Minimum 40 per cent and less than 60 per cent High fat cream: Minimum 60 percent Labels on packages of fermented creams may include reference to the starter culture used for fermentation. The heat treatment (refer General Standards for Milk and Milk Products), to which the product has been subjected to, shall be declared on the label.
5.7. A standard for Milk Fat Products
This Standard applies Milk fat, ghee, butter oil, anhydrous milk fat and anhydrous butter oil are fatty products derived exclusively from milk or products obtained from milk, or both, by means of processes which result in almost total removal of water and milk solids-not-fat. Ghee has specially developed flavor and physical structure as a result of its method of manufacturing.
Essential Composition and Quality Factors
a. Raw Material
Milk and products obtained from milk. The raw material used shall be free from added flavor, color or preservative.
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b. Composition
The standards of quality of milk fat, butter oil, anhydrous milk fat, anhydrous butter oil, and ghee shall conform to the following requirements: Table 10: Standard for Milk Fat Products
Anhydrous Milk Fat, Parameter Milk Fat, Butter Oil Khoa Anhydrous Butter Oil
Moisture, maximum, %, (m/m) 0.4 0.1 0.5
Milk fat, minimum, %, (m/m) 99.6 99.8 99.5
Butyro-refractometer Reading at 40.0 to 44.0 40.0 to 44.0 400C As per table for Ghee Reichert Meissl Value, minimum 28 28
Polenske Value 1.0 - 2.0 1.0 - 2.0 -
FFA as Oleic Acid, maximum, % 0.4 0.3 3
Peroxide Value (Milli-equivalent of 0.6 0.3 - Oxygen/Kg fat), maximum
Baudouin Test Negative Negative Negative
Additionally, the Butyro- refractometer reading and Reichert Meissl value of ghee will be different for different States or Union territories which are given in Tabular form in the regulation on pages 90 -92.
c. Labelling
The name of the food shall be:
Milk fat or Butter Oil Anhydrous Milk fat or Anhydrous Butter Oil Ghee 5.8. Standard for Butter
“Butter” means the fatty product principally in the form of an emulsion of the type water-in-oil derived exclusively from milk or milk products, or both,
Butter may be of following types
Table butter (Table butter shall be made from pasteurised cream) White butter/ Cooking butter
Essential composition and quality factors
a. Raw materials
Milk and/or milk fat based products obtained from milk.
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b. Permitted ingredients
Sodium chloride and food grade salt (only in table butter) Starter cultures of harmless lactic acid and flavour producing bacteria Potable water
c. Composition
The product shall conform to the compositional specifications provided in the table below Table 11: Standard for Butter
Parameter Table Butter White Butter/ Cooking Butter
Moisture, maximum, %, (m/m) 16.0 -
Milk fat, minimum, %, (m/m) 80.0 76.0
Milk solids-not-fat, maximum, %, (m/m) 2.0 -
Common salt, maximum, %, (m/m) 3.0 -
Note: Where butter is sold or offered for sale without any indication as to whether it is table butter or white butter, the Standards of table butter shall apply.
The extracted fat from butter shall meet the standards for Reichert Meissl value and Butyro-refractometer reading as prescribed for ghee.
d. Labelling
The name of the product shall be “Pasteurized Table butter” or “White butter/ Cooking Butter”, as appropriate, in conformance to the composition specified in regulations. Additionally, in case of white/cooking butter, the name should be preceded by the term ‘Pasteurised’ if the product has been prepared from pasteurised cream.
NOTE
In all these products the following requirement will be applicable. Where different it has been mentioned in the specified standards for each product.
e. Food Additives
For products covered under this standard, specific food additives specified in Appendix ‘A’ of these regulations may be used and only within the limits specified.
f. Contaminants, Toxins and Residues
The products shall comply with the limits for contaminants, toxins and residues stipulated under the Food Safety and Standards (Contaminants, toxins and Residues) Regulations, 2011.
g. Hygiene
The product shall be prepared and handled in accordance with the requirements specified in Schedule 4, as applicable, of the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011 and such other guidelines as specified from time to time under the provisions of the Food Safety and Standard Act, 2006 The products covered under this standard shall conform to the microbiological requirements specified in Appendix ‘B’ of these regulations.
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h. Labelling
In addition to specific labelling requirements mentioned against each product, the provisions of the Food Safety and Standards (Packaging and Labelling) Regulations, 2011 shall apply to pre-packaged products.
i. Method of Sampling and Analysis
The methods of sampling and analysis mentioned in the manuals as specified by the Food Safety and Standards Authority of India from time to time shall be applicable. 5.9. Standard for Milk Powders and Cream Powder
Milk powders and cream powder are milk products which can be obtained by partial removal of water from milk or cream. The fat or protein content, or both of the milk or cream may be adjusted, only to comply with the compositional requirements in regulations by addition or withdrawal of milk constituents in such a way as not to alter the whey protein to casein ratio of the milk or cream being adjusted. Product shall be free from added whey and whey preparations.
Essential Composition and Quality Factors
a. Raw materials
Milk and cream The following milk products are allowed for protein adjustment purposes-
Milk retentate: Milk retentate is the product obtained by concentrating milk protein by ultrafiltration of milk, partly skimmed milk, or skimmed milk;
b. Composition
The product shall conform to the compositional specifications provided in the table below Table 12: Standard for Milk Powder and Cream Powder
Whole Milk Skimmed Cream Parameter Partly Skimmed Milk Powder Powder Milk Powder Powder Moisture, maximum, 5.0 5.0 5.0 5.0 %, (m/m) Milk solids, minimum, %, 28.0 24.0 24.0 - (m/m) Minimum 26. More than 1.5 and less than 1.5 42.0 Milk fat, %, (m/m) 0 and less 26.0 (maximum) (minimum) than 42.0 Milk protein in milk solids not fat, 34.0 34.0 34.0 34.0 minimum, %, (m/m) Titratable acidity, maximum (ml 0.1 18.0 18.0 18.0 - NaOH for 10 g – solids-not-fat) Insolubility Index, 2.0 2.0 2.0 - maximum, ml
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Whole Milk Skimmed Cream Parameter Partly Skimmed Milk Powder Powder Milk Powder Powder Total ash, maximum, % (m/m), on 9.3 9.3 9.3 - moisture and fat free basis Scorched particles, maximu Disc B Disc B Disc B Disc B m
The moisture content does not include water of crystallization of the lactose; the milk solids-not-fat content includes water of crystallization of the lactose.
** Protein content is 6.38 multiplied by the total nitrogen determined.
c. Labelling
The name of the food shall be:
whole milk powder, or partly skimmed milk powder, or skimmed milk powder, or cream powder, as appropriate:
Provided that the “partly skimmed milk powder” may be designated “semi-skimmed milk powder” if the content of milk fat does not exceed 16% (m/m) and is not less than 14% (m/m).
Wherever the word “milk” appears on the label of a package of skimmed milk powder as the description or part of the description of the contents, it shall be immediately preceded or followed by the word “skimmed or partly skimmed”, as the case may be.
There shall not be placed on any package containing the product covered under this Standard any comment on, explanation of, or reference to either the statement of equivalence, contained in the prescribed declaration or on the word “skimmed” [or “unsuitable for babies”] except instructions as to dilution as follows:
“To make a fluid not below the composition of (here insert type of milk – toned milk or skimmed milk as the case may be) with the contents of this package, add (here insert the number of parts) of water by volume to one part by volume of this product” 5.10. Standard for Dairy Whitener
Dairy Whitener is a milk product prepared through an appropriate processing of cow milk, buffalo milk or milk of any other species as defined under this regulation or a mixture thereof, and contains added carbohydrates such as sucrose, dextrose and maltodextrin, singly or in combination. The fat or protein content, or both, of the milk may be adjusted by addition or withdrawal of milk constituents in such a way as not to alter the whey protein to casein ratio of milk.
Essential Composition and Quality Factors
The product shall be
white or light cream in colour, uniform in composition and free from lumps except those that break up readily under slight pressure free from extraneous matters and added colours free from off flavours
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The flavour of the product before or after reconstitution shall be pleasant and sweet. It is recommended that the flavour and taste may be judged on the basis of their sensory characteristics.
The product shall conform to the compositional specifications provided in the table below: Table 13: Standard for Dairy Whitener
Sr. No. Characteristics Requirements Skimmed Low Fat Medium Fat High Fat Dairy Dairy Dairy Dairy Whitener Whitener Whitener Whitener
Moisture, maximum, 1 4.0 4.0 4.0 4.0 %, (m/m)
More Minimum 1.5 than 1.5 and 20.0 2 Milk Fat, %, (m/m) 10.0 and less (maximum) less than minimum than 20.0 10.0
Milk protein (in solids-not- 3 34.0 34.0 34.0 34.0 fat), minimum, %, (m/m)
Insolubility Index, ml, 4 1.5 1.5 1.5 1.5 maximum Total ash (on moisture, added sugar and fat free 5 9.3 9.3 9.3 9.3 basis), maximum, %, (m/m)
Acid Insoluble ash 6 0.1 0.1 0.1 0.1 maximum, %, (m/m)
Added sugar (as sucrose), 7 18.00 18.00 18.00 18.00 maximum, %, (m/m)
Acid Insoluble ash, 8 0.1 0.1 0.1 0.1 maximum, %, (m/m)
Added sugar (as sucrose), 9 18.00 18.00 18.00 18.00 maximum, %, (m/m)
** Protein content is 6.38 multiplied by the total nitrogen determined
*** Added sugar up to a level of 24% shall be permissible up to two years from the date of final notification.
a. Labelling
The name of the food shall be
Skimmed Milk Dairy Whitener, or Low Fat Dairy Whitener, or Medium Fat Dairy Whitener, or High Fat Dairy Whitener, as appropriate
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5.11. A standard for Whey Powder
Whey powders are milk products obtained by drying Whey or Acid Whey. Whey is the fluid milk product obtained during the manufacture of cheese, casein or similar products by separation from the curd after coagulation of milk or of products obtained from milk, or both. Coagulation is obtained through the action of, principally, suitable enzymes of non- animal origin. Acid whey is the fluid milk product obtained during the manufacture of cheese, casein, paneer, channa or similar products by separation from the curd after coagulation of milk and of products obtained from milk. Coagulation is obtained, principally, by acidification and heating.
Essential Composition and Quality Factors
a. Raw materials
Whey or Acid whey, as appropriate.
b. Ingredients
Seed lactose in the manufacture of pre-crystallized Whey Powder
c. Composition
The product shall conform to the compositional specifications provided in the table below Table 14: Standard for Whey Powder
Parameter Whey Powder Acid Whey Powder
Moisture, maximum, %, (m/m) 5.0 4.5
Milk fat, maximum, %, (m/m) 2.0 2.0
Milk protein, minimum, %, (m/m) 10.0 7.0
Lactose content, as anhydrous lactose, minimum, %, (m/m) 61.0 61.0
pH (in 10% solution) more than 5.1 5.1 (maximum)
Total ash, maximum, %, (m/m) (on dry basis) 9.5 15.0
Note(s):
(i) The water content does not include water of crystallization of the lactose.
(ii) Protein content is 6.38 multiplied by the total nitrogen determined.
(iii) Although the powders may contain both anhydrous lactose and lactose monohydrates, the lactose content is expressed as anhydrous lactose. 100 parts of lactose monohydrate contain 95 parts of anhydrous lactose.
(iv) Or titratable acidity (calculated as lactic acid) <0.35%.
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(v) Or titratable acidity (calculated as lactic acid) ≥ 0.35%.
In accordance with the provisions of the regulations, whey powders may be modified in composition to meet the desired end-product composition, for instance, neutralization or demineralization. However, compositional modifications beyond the minimum or maximum specified above for milk protein and water are not permitted.
d. Labelling
The name of the food shall be:
Whey Powder, or Acid Whey Powder, as appropriate 5.12. A standard for Fermented Milk Products
This Standard applies to fermented milk, including, heat-treated fermented milk, concentrated fermented milk and composite milk products based on these products in conformity with the definitions given in the regulations.
Fermented Milk is a milk product obtained by fermentation of milk, which may have been manufactured using other permitted raw material, by the action of suitable microorganisms and resulting in lowering of pH with or without coagulation (iso-electric precipitation). Fermented milk may be heat treated after fermentation. The raw material used shall be subjected to a heat treatment as defined in the General Standard for Milk and Milk Products.
Certain fermented milks are characterised by specific starter culture(s) used for fermentation as follows Table 15: Standard for Fermented Milk Products
Dahi Lactic Acid Bacteria
Symbiotic cultures of Streptococcus thermophilus and Lactobacillus Yoghurt delbrueckii sub sp. bulgaricus
Alternate Culture Cultures of Streptococcus thermophilus and Lactobacillus species Yoghurt
Acidophilus Milk Lactobacillus acidophilus
Other harmless microorganisms than those constituting the specific starter cultures specified above may also be added.
Descriptions have been provided for
Flavoured fermented milk Drinks based on fermented milk Concentrated Fermented Milk Chakka and Shrikhand
Essential Composition and Quality Factors
a. Raw materials
milk concentrated milk and dried milk cream, butter, butter oil and anhydrous milk fat potable water for use in reconstitution or recombination or drinks based on fermented milks
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b. Permitted ingredients
starter cultures of harmless microorganisms, including those specified in regulations other suitable and harmless microorganisms salt sugar (only in Flavoured Fermented Milks, Drinks based on Fermented Milks, Yoghurt, Dahi and Shrikhand) nutritive sweeteners other than sugar (only in Flavoured Fermented Milks, Drinks based on Fermented Milks, Yoghurt and pre-packaged Dahi) non-dairy ingredients such as fruits and vegetables and their products thereof such as juices, purees, pulps, preparations and preserves derived therefrom, cereals and cereal products, coconut and coconut products, honey, chocolate, nuts, coffee, spices, condiments, culinary herbs and other harmless natural flavouring foods (only in Flavoured Fermented Milks, Drinks based on Fermented Milks and Shrikhand) milk and milk products (only in Drinks based on Fermented Milks) Prebiotics and Probiotics Starch (only in fermented milks heat treated after fermentation, flavoured fermented milks and drinks based on fermented milks) Provided that it is added only in amounts functionally necessary as governed by Good Manufacturing Practice, taking into account any use of the stabilizers or thickeners as specified in Appendix ‘A’ of these regulations. Starch may be added either before or after adding the non-dairy ingredients.
c. Composition
The starter microorganisms shall be viable, active and abundant in the product up to the date of minimum durability. The sum of microorganisms constituting the starter culture defined in sub- item (a) of item 1 shall not be less than 107cfu/g. The labelled microorganisms, when specific microorganisms other than those specified in sub-item (a) of item 1are added and a content claim is made on label, shall not be less than 106cfu/g. If the product is heat treated after fermentation these requirements for viable microorganisms do not apply Fermented milks shall have a minimum milk protein content of 2.9 % (m/m) and minimum titrable acidity of 0.45% (m/m as lactic acid) unless otherwise specified. In case of Flavoured Fermented Milks and Drinks based on Fermented Milks, these specifications apply to the Fermented Milk Part unless otherwise specified Plain Dahi shall have the same minimum percentage of milk fat and milk solids-not-fat as that of the milk, as provided for in the Standard for Milk, from which it is prepared. Where plain Dahi is sold or offered for sale without any indication of class of milk, the Standards prescribed for Dahi prepared from mixed milk shall apply Yoghurt (including Flavoured Yoghurt) and Flavoured Dahi, Chakka and Shrikhand shall all conform to the compositional specifications as have been given in tabular form on pages 102 and 103 of the regulation.
Essential manufacturing characteristic
Whey removal after fermentation is not permitted in the manufacture of fermented milks, except for concentrated fermented milk.
d. Labelling
Name of the food-
The name of the products shall be ‘Fermented Milk’ Provided that the name ‘Fermented Milk’ may be replaced with designations Dahi, Curd and Yoghurt if the product complies with the relevant provisions of this Standard.
The designation ‘Yoghurt or Dahi’ may be used in connection with the term “frozen” Provided that
the product submitted to freezing complies with the requirements in this Standard
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the specific starter cultures can be reactivated in the specified numbers by thawing the frozen product is named as such and is sold for direct consumption only. Yoghurt or Dahi containing non-dairy ingredients may be designated as ‘Sweetened or Flavoured Yoghurt or Dahi’, as appropriate. Yoghurt or Dahi containing fruits may be designated as ‘Fruit Yoghurt or Dahi’, as appropriate. 5.13. Standard for Ice Cream, Kulfi, Chocolate Ice Cream, Softy Ice-Cream, Milk Ice, Milk Lolly and Dried Ice Cream Mix
This Standard applies to Ice Cream and Kulfi and their variants, milk ice and milk lolly, and dried ice- cream mix in conformity with the definitions given in the regulation
Description has been given for the following
Ice-Cream, Kulfi, Chocolate Ice Cream or Softy Ice-Cream Milk Ice or Milk Lolly Dried Ice-Cream Mix
Essential Composition and Quality Factors
a. Raw Material
Milk and milk products
b. Permitted ingredients
sugar and other nutritive sweeteners (e.g. jaggery, dextrose, fructose, liquid glucose, dried liquid glucose, high maltose corn syrup, honey etc.) potable water starch, provided it is added only in amounts functionally necessary as governed by Good Manufacturing Practice, taking into account any use of the stabilizers or thickeners as specified in Appendix ‘A’ of these regulations. other non-dairy ingredients – fruit and fruit products, eggs and egg products, coffee, cocoa, chocolate, confectionary, condiments, spices, ginger and nuts; bakery products such as cake or cookies.
c. Composition
Compositional specifications have been provided in the tabular form separately for each category
Ice cream, Kulfi, Chocolate Ice cream and Softy Ice Cream Milk Ice or Milk Lolly Dried Ice Cream Mix
d. Labelling
The name of the product shall be
‘Ice Cream’, ‘Kulfi’, ‘Chocolate Ice Cream’ or ‘Softy Ice Cream’. ‘Milk Ice’ or ‘Milk Lolly’. ‘Dried Ice Cream Mix’. The type of ice cream, kulfi, chocolate ice cream or softy ice cream shall always be indicated on the label of the product. For softy ice cream offered for sale directly from the freezer without pre-packaging, the type of product shall be displayed in a manner and at a place that is clearly visible to the consumer.
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Every package of ice cream, kulfi, chocolate ice cream and softy ice cream containing starch shall have a declaration on its label as specified in sub- regulation 2.7.1 (2) of Food Safety and Standards (Packaging and Labelling) Regulations, 2011.
Standard for Frozen Desserts or Confections with Added Vegetable Oil/ Fat or Vegetable Protein, or both
This Standard applies to Frozen Desserts or Confections. The regulations have defined the terms to which these standards apply. Frozen Dessert or Frozen Confection Dried Frozen Dessert Mix or Dried Frozen Confection Mix
Essential Composition and Quality Factors
a. Raw Material
Milk and/or milk products Vegetable oils or fats Vegetable protein products
b. Permitted ingredients
sugar and other nutritive sweeteners (e.g. jaggery, dextrose, fructose, liquid glucose, dried liquid glucose, high maltose corn syrup, honey etc.) potable water starch, provided it is added only in amounts functionally necessary as governed by Good Manufacturing Practice, taking into account any use of the stabilizers or thickeners as specified in Appendix ‘A’ of these regulations other non-dairy ingredients – fruit and fruit products, eggs and egg products, coffee, cocoa, chocolate, confectionary, condiments, spices, ginger and nuts; bakery products such as cake or cookies.
c. Composition
Compositional specifications for Frozen Dessert or Frozen Confection Table 16: Standard for Ice Cream, Kulfi, Chocolate Ice Cream, Softy Ice-Cream, Milk Ice, Milk Lolly and Dried Ice Cream Mix
Medium fat Frozen Frozen Dessert or Low fat Frozen Dessert Parameter Dessert or Frozen Frozen Confection or Frozen Confection Confection Total Solids, minimum, 36.0 30.0 26.0 %,(m/m) Weight, minimum, 525.0 475.0 475.0 (g/l)
Total Fat, %, More than 2.5 and less 10.0 (minimum) 2.5 (maximum) (m/m) than 10.0
Protein*, minimum, % 3.5 3.5 3.0 (m/m)
* Protein content is 6.25 multiplied by the total nitrogen determined
Note
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In case where coating, base or layer of non-dairy ingredients forms a separate part of the product, only the Frozen Dessert or Frozen Confection portion shall conform to the respective composition. When any type of Frozen Dessert or Frozen Confection is offered for sale in contravention of the requirements as stated, the Standards prescribed for these types of Frozen Desserts or Frozen Confections as per this item shall apply.
Dried Frozen Dessert Mix or Dried Frozen Confection Mix
The product on addition of water shall give a product conforming to the composition, except the ‘weight’, as specified in the regulation. The moisture content of the dried product shall not be more than 4.0 % (m/m).
d. Labelling
Name of the foods shall be
‘Frozen Dessert or Frozen Confection’.
‘Dried Frozen Dessert or Dried Frozen Confection’
The type of Frozen Dessert or Frozen Confection shall be indicated on the label of the product. For soft consistency products offered for sale directly from the freezer without any pre-packaging, the type of product shall be displayed in a manner and at a place that is clearly visible to the consumer. Every package of Frozen Desert or Frozen Confection shall bear the following label, namely: ̶ “Contains ………………. % Milk Fat* Edible Vegetable Oil* and Vegetable Fat* and Vegetable Protein Product” (*strike out whatever is not applicable) 5.14. Standard for Chhana and Paneer
Chhana or Paneer means the product obtained from any variant of milk**, with or without added milk solids, by precipitation with permitted acidulants and heating.
Essential Composition and Quality Factors
a. Raw materials
Milk Milk solids
b. Permitted ingredients
Acidulants such as lactic acid, citric acid, malic acid, vinegar, glucono delta lactone, sour whey spices and condiments (for flavoured paneer only) salt (for flavoured paneer only).
c. Composition
The product shall conform to the compositional specifications provided in the table below: Table 17: Standard for Chhana and Paneer
Parameter Channa or Paneer Low fat Channa or Paneer
65.0 (for Channa) 65.0 (for Channa) Moisture, maximum, %, (m/m) 60.0 (for Paneer) 60.0 (for Paneer)
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Milk fat, %, (m/m), dry matter basis 50.0 (minimum) 15.0 (maximum)
d. Labelling
The name of the product shall be ‘Chhana’, ‘Paneer’, ‘Low Fat Chhana’ or ‘Low Fat Paneer’ depending upon the composition
Low Fat Channa and Low Fat Paneer shall be sold in sealed package only and shall bear the following label declaration:
“LOW FAT PANEER or LOW FAT CHHANA” 5.15. Standard for Cheese and Cheese Products
This Standard applies to Cheese, Processed Cheese and Processed Cheese Spreads as defined in the regulation. The regulations have described in detail the methods of making cheese.
‘Ripened Cheese’ means cheese which is not ready for consumption shortly after manufacture but which must be held for some time at such temperature and under such other conditions as will result in necessary biochemical and physical changes characterizing the cheese in question. ‘Mould Ripened Cheese’ means ripened cheese in which the ripening has been accomplished primarily by the development of characteristic mould growth through the interior and/ or on the surface of the cheese. ‘Unripened Cheese including fresh cheese’ means cheese which is ready for consumption shortly after manufacture.
These standards are applicable to all types of cheese defined individually in the regulations and includes cheddar cheese, Danbo cheese, ‘Edam Cheese, ‘Gouda Cheese, Havarti Cheese, ‘Tilsiter, Cottage Cheese, ‘Cream Cheese’ (Rahmfrischkase), ‘Coulommiers Cheese, ‘Camembert Cheese, Brie cheese, Saint Paulin, Samsoe, Emmental, ‘Provolone, Extra Hard Grating Cheese.
“Cheese Products” are the products prepared from cheese(s) with other milk products and may contain permitted non-dairy ingredients. ‘Processed Cheese’ means the product obtained by grinding, mixing, melting and emulsifying one or more varieties of cheeses with the aid of heat and emulsifying agents and may contain cream, butter, butter oil and other milk products. It may also contain non-dairy ingredients not exceeding one sixth of the weight of the total solids of the final product on dry matter basis. ‘Processed Cheese’ Spread means the product obtained by grinding, mixing, melting and emulsifying one or more varieties of cheese with emulsifying agents with the aid of heat and may contain cream, butter oil and other dairy products. It may also contain natural carbohydrate sweetening agents and other non-dairy ingredients not exceeding one sixth of the weight of total solids of the final product on dry weight basis.
Essential Composition and Quality Factors
a. Raw materials
Milk and products obtained from milk.
b. Permitted ingredients
Starter cultures of harmless lactic acid, and flavour producing bacteria and cultures of other harmless microorganisms Safe and suitable enzymes (non-animal origin) Sodium chloride Potable water
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Non-dairy ingredients: Vinegar or acetic acid, spices, condiments and other vegetable seasoning and foods, other than sugars, properly cooked or prepared for flavouring and characterization of the product (In Cheese Products only Natural carbohydrate sweetening agents: Sucrose, dextrose, corn syrup, corn syrup solids, honey, maltose, malt syrup and hydrolysed lactose (In Processed Cheese Spreads only).
The compositional specifications have been given in tabular form on pages 113 and 114 of the regulations.
c. Labelling
The name of the food product shall be “Cheese”. However, the word “Cheese” may be omitted in the designation of an individual cheese variety Every package of Cheese (hard), surface treated with Natamycin, shall bear the following label
SURFACE TREATED WITH NATAMYCIN
Every package of Cheese(s), if coated or packed in food grade waxes polyfilm or wrapping of cloth, shall bear the following label
REMOVE THE OUTER PACKING BEFORE CONSUMPTION 5.16. Standard for Edible Casein Products
Edible Casein products mean the products obtained by separating, washing and drying the coagulum of skimmed milk or of other products obtained from milk; Edible Acid Casein means the product obtained by separating, washing and drying the acid precipitated coagulum of skimmed milk or of other products obtained from milk; Edible Rennet Casein means the product obtained after washing and drying the coagulum remaining after separating the whey from the skimmed milk or of other products obtained from milk, or both, which has been coagulated by non-animal rennet or by other coagulating enzymes; Edible Caseinate means the dry product obtained by reaction of edible casein or casein curd coagulum with food grade neutralising agents followed by drying.
Essential Composition and Quality Factors
a. Raw Material
Skimmed milk and other suitable products obtained from milk.
b. Ingredients
edible acids starter cultures of harmless lactic acid producing bacteria non-animal rennet or other safe and suitable coagulating enzymes potable water neutralizing agents
c. Composition
The product shall conform to the compositional specifications provided in the table bon page 116.
d. Labelling
The name of the product shall be Edible Acid Casein or Edible Rennet Casein or Edible Caseinate. Edible Caseinate shall also be qualified by the name of the cation in the neutralizing agent used.
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Source: https://foodsafetyhelpline.com/2017/10/fssai-notifies-revised-general-standards-milk-milk- products/
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Chapter 6: Appropriate Technology/ Plant and Machinery for Dairy Processing Unit
In this section, most appropriate technologies or plant and machinery will be described along with their application. Following the is important technology used in any standard dairy processing unit:
1. Milk Milking Machine 2. Bulk Milk Coolers 3. Road Milk Tankers 4. Milk Storage Tank (Silo) 5. Milk Chiller (PHE Type) 6. Milk Pasteurizer 7. Milk Homogenizer 8. Cream Separator 9. Butter Making Machine
10. Ghee Making Machine 11. Curd Making Machine 12. Paneer Making Machine 13. IQF 6.1. Milk Milking Machine The milking process is the collection of tasks specifically devoted to extracting milk from an animal (rather than the broader field of dairy animal husbandry). This process may be broken down into several sub- tasks: collecting animals before milking, routing animals into the parlour, inspection and cleaning of teats, attachment of milking equipment to teats, and often massaging the back of the udder to relieve any held back milk, extraction of milk, removal of milking equipment, routing of animals out of the parlour.
Maintaining milk yield during the lactation period (approximately 300 days) requires consistent milking intervals, usually twice daily and with maximum time spacing between milking. In fact all activities must be scheduled around the milking process on the dairy farm. Such a milking routine imposes restrictions on time management and personal life of an individual farmer, as the farmer is committed to milking in the early morning and in the evening for seven days a week regardless of personal health, family responsibilities or social schedule. This time restriction is exacerbated for lone farmers and farm Figure 12: Milking Machine families if extra labour cannot easily or economically be obtained, and is a factor in the decline in small-scale dairy farming. Techniques such as once-a-day milking and voluntary milking (see below) have been investigated to reduce these time constraints.
Parts of a milking machine:
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1. Pulsator 2. Teat cup shells and liners 3. Milk receptacle 4. Vacuum pump and gauge 5. Vacuum tank. 6. Regulator
Benefits of milking machine:
Elimination of labour - The farmer is freed from the milking process and associated rigid schedule, and labour is devoted to supervision of animals, feeding, etc. Milking consistency – The milking process is consistent for every cow and every visit, and is not influenced by different persons milking the cows. The four separate milking cups are removed individually, meaning that an empty quarter does not stay attached while the other three are finishing, resulting in less threat of injury. The newest models of automatic milkers can vary the pulsation rate and vacuum level based on milk flow from each quarter. Increased milking frequency – Milking frequency may increase to three times per day, however typically 2.5 times per day is achieved. This may result in less stress on the udder and increased comfort for the cow, as on average less milk is stored. Higher frequency milking increases milk yield per cow, however much of this increase is water rather than solids. Perceived lower stress environment – There is a perception that elective milking schedules reduce cow stress. Herd management – The use of computer control allows greater scope for data collection. Such data allows the farmer to improve management through analysis of trends in the herd, for example response of milk production to changes in feedstuffs. Individual cow histories may also be examined, and alerts set to warn the farmer of unusual changes indicating illness or injury. Information gathering provides added value for AMS, however correct interpretation and use of such information is highly dependent on the skills of the user or the accuracy of computer algorithms to create attention reports. 6.2. Bulk Milk Cooler In dairy farming a bulk milk cooling tank is a large storage tank for cooling and holding milk at a cold temperature until it can be picked up by a milk hauler. The bulk milk cooling tank is an important piece of dairy farm equipment. It is usually made of stainless steel and used every day to store the raw milk on the farm in good condition. It must be cleaned after each milk collection. The milk cooling tank can be the property of the farmer or be rented from a dairy plant A milk cooling tank, also known as a bulk tank or milk cooler, consists of an inner and an outer tank, both made of high quality stainless steel. The space between the outer tank and the inner tank is isolated with polyurethane foam. In case of a power failure with an outside temperature of 30°C, the content of the tank will warm up only 1°C in 24 hours. To facilitate an adequate and rapid cooling of the entire content of a tank, every tank is equipped with at least one agitator. Stirring the milk ensures that all milk inside the tank is of Figure 13: Bulk Milk Cooler the same temperature and that the milk stays homogeneous. On top of every closed milk cooling tank is a manhole of about 40 centimetres diameter. This enables thorough cleaning and inspection of the inner tank if necessary. The manhole is covered by a lid and sealed watertight with a rubber ring. Also on top are 2 or 3 small inlets. One is covered with an air-vent, the other(s) can be used to pump milk into the tank. A milk cooling tank usually stands on 4, 6, or 8 adjustable legs. The built-in tilt of the inner tank ensures that even the last drop of milk will eventually flow to the outlet. At the bottom, every milk cooling tank has a threaded outlet, usually including a valve. All tanks have a thermometer, allowing for immediate inspection of the inner temperature.
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Most tanks include an automatic cleaning system. Using hot and cold water, an acid and/or alkaline cleaning fluid, a pump and a spray lance will clean the inner tank, ensuring an hygienic inner environment each time the tank is emptied. Almost every tank has a control box. It manages the cooling process by use of a thermostat. The user can turn the system on and off, allow for extra and immediate stirring, start the cleaning routine, and reset the entire system in case of a failure. New and bigger milk cooling tanks are now being equipped with monitoring and alarm systems. These systems guard temperature of the milk inside the tank, check the functioning of the agitator, the cooling unit and temperature of the cleaning water. In case of malfunctioning of any of these functions, the alarm will activate. The monitoring system will also keep a record of the temperature and of all malfunctions for a given period. 6.3. Road Milk Tanker Stainless Steel Road Milk Tankers are of double wall construction with 100mm PUF Insulation between the inner tank and the outer tank. The inner tank will have high degree of polish finish for Milk storage and transportation. The tank will be elliptical in shape with single or multi compartment construction.
Each compartment will have independent manhole assembly, complete with manhole lid, Pressure vacuum relief valve, air vent and CIP cleaning arrangement. The manhole shall be additionally covered with a Stainless Steel dust cover. The milk discharge from the tank will be at the bottom through a discharge cup, pipe line and butterfly valves. Valve box will be located at the rear platform.
The tank will be having ladder, catwalk, and side protection rail and side protection channels. The tank rear shall be provided with a Skirting and a Figure 14: Road Milk Tanker platform arrangement. PUF insulated tank is capable of transporting chilled milk at 3°C to 4°C and the average temperature drop of milk in a fully filled tank in a day will be less than 2°C. The insulated tank will be integrated with the chassis with a trapezoidal frame and will have adequate slope towards the rear for complete drainage of milk. CIP cleaning arrangement will be provided for regular water cleaning and maintenance of the tank. Road Milk tanker can be supplied with single/double/triple compartments and capacity in the range of 4000L to 21000L based on the chassis selected. 6.4. Milk Storage Tank (Silo) Silo tanks for milk reception belong to the storage category and have been described in Chapter 5, Collection and reception of milk. They vary in size from 25 000 to about 150 000 litres and the wetted surfaces are made of stainless steel. They are often placed outdoors to save on building costs. In these cases, the tanks are insulated. They have a double shell with a minimum of 70 mm mineral wool insulation in between.
The outer shell can be of stainless steel, but for economic reasons, it is usually made of mild steel and coated with anti- corrosion paint. To make complete drainage easy, the bottom of the tank slopes downwards with an inclination of about 6 % towards the outlet. This is a statutory requirement in some countries. Figure 15: Milk Storage Tanks Silo tanks are fitted with various types of agitators and monitoring and control equipment. The number and size of the silo tanks are determined by such factors as the milk intake per day, the number of days per working week, the number of hours per working day (one, two or three shifts), the number of different products to be manufactured, and the quantities involved.
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6.5. Milk Chiller (PHE Type) Milk is chilled by ice to a temperature of 4 0 C or below. It is an intermediate processing before heat treatment of milk. Chilling of milk minimizes the souring and spoilage.
Figure 16: Milk Chiller (PHE Type) 6.6. Milk Pasteurizer To increase milk safety for the consumer by destroying disease causing microorganisms (pathogens) that may be present in milk. To increase keeping the quality of milk products by destroying spoilage microorganisms and enzymes that contribute to the reduced quality and shelf life of milk. Minimum pasteurization requirements for milk products are based on regulations outlined in the Grade A Pasteurized Milk Ordinance (PMO). These conditions were determined to be the minimum processing conditions needed to kill Coxiella burnetii, the organism that causes Q fever in humans, which is the most heat resistant pathogen currently recognized in milk. Milk can be pasteurized using processing times and temperatures greater than the required minimums. Pasteurization can be done as a batch or a continuous process. A vat pasteurizer consists of a temperature-controlled, closed vat. The milk is pumped into the vat, the milk is heated to the appropriate temperature and held at that temperature for the appropriate time and then cooled. The cooled milk is then pumped out of the vat to the rest of the processing line, for example to the bottling station or cheese vat. Batch Figure 17: Milk Pasteurizer pasteurization is still used in some smaller processing plants. The most common process used for fluid milk is the continuous process. The milk is pumped from the raw milk silo to a holding tank that feeds into the continuous pasteurization system. The milk continuously flows from the tank through a series of thin plates that heat up the milk to the appropriate temperature. The milk flow system is set up to make sure that the milk stays at the pasteurization temperature for the appropriate time before it flows through the cooling area of the pasteurizer. The cooled milk then flows to the rest of the processing line, for example to the bottling station. There are several options for temperatures and times available for continuous processing of refrigerated fluid milk. Although processing conditions are defined for temperatures above 200°F, they are rarely used because they can impart an undesirable cooked flavour to milk. 6.7. Milk Homogenizer "Homogenization is a process that gives milk its rich, white colour and smooth texture. Milk that has not been homogenized contains a layer of cream that rises to the top of a glass. Before the homogenization process was used, milk was shaken or mixed to achieve consistency in its look and taste. The homogenization process involves reducing the size of the fat globules into miniscule portions that are dispersed evenly throughout the milk. Homogenization usually is achieved by pumping milk through small openings under very high pressure."
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"Homogenization today is usually a two-step process. The first stage…pushes milk through small, tapered tubes or pores. As the diameter shrinks and the flow of milk remains constant, pressure builds up and fat globules break apart in the turbulence. The higher the pressure, the smaller the particles. How much pressure? Typically, 2,000-3,000 pounds per square inch (psi), although some super homogenizers work at over 1000 times atmospheric pressure- 14,500psi and higher! You can jam milk through pretty small holes with force like that. Before homogenization, fat globules range in size from 1-10 microns (a micron = Figure 18: Milk Homogenizer ~0.00004 inch). After, the size range is reduced to 0.2-2 microns. As the much smaller fat globules begin to reassemble, they include fragments of whey and casein in their walls. Some are completely surrounded by a layer of protein. The tendency is for these new, chemically altered globules to clump together. Stage two of the homogenization process breaks up this unwanted assembly and makes sure everything stays in solution." 6.8. Cream Separator Cream separator, machine for separating and removing cream from whole milk; its operation is based on the fact that skim milk (milk with no butterfat) is heavier than cream. The separator consists of a centrifuge in the form of a rapidly revolving bowl containing a set of disks. The bowl is mounted on a spindle situated underneath the milk supply tank. As milk enters the bowl at the top, it is distributed to the disks through a series of openings, the distributor. Thin films of milk are generated as whole milk is forced out between the disks; the milk assumes the speed of the bowl, Figure 19: Cream Separator approximately 6,000 to 8,000 revolutions per minute, and the heavier skim milk is thrown to the outer edge of the bowl and led off through an opening. The cream concentrates in the interior and moves up to the cream outlet near the centre of the bowl. The most efficient separators leave less than 0.01 percent fat in the skim milk. 6.9. Butter Making Machine Butter is defined is a fat concentrate product obtained by churning, cream, gathering fat into a compact mass and working it. Butter is made exclusively from milk or cream with or without common salt and colouring matter and contains not less than 80% fat. In butter, fat is present in continuous phase and water is present in dispersed phase. This phenomenon is known as phase inversion. The essential feature of churning involves destabilization of lipid phase emulsion by means of mechanical agitation. Churning is initiated by agitation and the incorporation of numerous small air bubbles. Partially denatured fat globules gather at the fat/plasms inter face, where they form, small clumps. A portion of this hydrophilic fat spreads over the surface of air bubbles causing them to collapse. Prior to working of butter granules in the Figure 20: Butter Making Machine churn, approximately 80% of the fat phase exists as globular fat. As the butter granules are worked more and more fat globules are crushed causing the release of liquid fat. This free fat constitutes the continuous phase. Fat globules and finely dispersed droplets of the aqueous. Phase represent the dispersed phase.
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6.10. Ghee Making Machine Ghee is clarified butter fat. It is prepared on both small and large scale, Deshi method of ghee making comprises more than 90% if Indian Ghee production. The Ghee is prepared b fermenting whole milk to curd, churning the curd to butter and boiling down the latter to ghee. Ghee is the richest source of animal fat in vegetarian diet. It supplies 9 K. calorie energy/gm. It has long keeping quality under tropical storage conditions. In India, Ghee is prepared form Makhan (deshi butter). This ghee has low keeping quality than ghee prepared by other methods. Figure 21: Ghee Making Machine Ghee is being prepared by continuous method on large scale. A new method of ghee making has been started and named as pre-stratification method. Cream (ripened/un-ripened) can also be used for ghee making. Ghee prepared form un-ripened cream has got longer keeping quality. Factory scale ghee is prepared form un-ripened cream. 6.11. Yoghurt Making Machine Yogurt is a fermented milk product that contains the characteristic bacterial cultures Lactobacillus bulgaricus and Streptococcus thermophilus. All yogurt must contain at least 8.25% solids not fat. Full fat yogurt must contain not less than 3.25% milk fat, low fat yogurt not more than 2% milk fat, and nonfat yogurt less than 0.5% milk. The two styles of yogurt commonly found in the grocery store are set type yogurt and swiss style yogurt. Set type yogurt is when the yogurt is packaged with the fruit on the bottom of the cup and the yogurt on top. Swiss style yogurt is when the fruit is blended into the yogurt prior to packaging. The main ingredient in yogurt is milk. The type of milk used depends on the type of yogurt – whole milk for full fat yogurt, low fat milk for low- fat yogurt, and skim milk for non-fat yogurt. Other dairy ingredients are allowed in yogurt to adjust the composition, such as cream to adjust the fat content, and non-fat dry milk to adjust the solids content. The solids content of yogurt is often adjusted above the 8.25% minimum to provide a better body and texture to the finished yogurt. The CFR contains a list of the Figure 22: Yoghurt Making Machine permissible dairy ingredients for yogurt. Stabilizers may also be used in yogurt to improve the body and texture by increasing firmness, preventing separation of the whey (syneresis), and helping to keep the fruit uniformly mixed in the yogurt. Stabilizers used in yogurt are alginates (carageenan), gelatins, gums (locust bean, guar), pectins, and starch. Sweeteners, flavours and fruit preparations are used in yogurt to provide variety to the consumer. A list of permissible sweeteners for yogurt is found in the CFR. The main (starter) cultures in yogurt are Lactobacillus bulgaricus and Streptococcus thermophilus. The function of the starter cultures is to ferment lactose (milk sugar) to produce lactic acid. The increase in lactic acid decreases pH and causes the milk to clot, or form the soft gel that is characteristic of yogurt. The fermentation of lactose also produces the flavor compounds that are characteristic of yogurt. Lactobacillus bulgaricus and Streptococcus thermophilus are the only 2 cultures required by law (CFR) to be present in yogurt. Other bacterial cultures, such as Lactobacillus acidophilus, Lactobacillus subsp. casei, and Bifido-bacteria may be added to yogurt as probiotic cultures. Probiotic cultures benefit human health by improving lactose digestion, gastrointestinal function, and stimulating the immune system.
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6.12. Paneer Making Machine Paneer is a fresh cheese common in the Indian subcontinent, especially in India. It is an unaged, non- melting farmer cheese made by curdling milk with a vegetable-derived acid, such as lemon juice. Its acid- set form (cheese curd or acid-set cottage cheese) is called chhena. Paneer is prepared by adding food acid, such as lemon juice, vinegar, citric acid or dahi (yogurt), to hot milk to separate the curds from the whey. The curds are drained in muslin or cheesecloth and the excess water is pressed out. The resulting paneer is dipped in chilled water for 2–3 hours to improve its texture and appearance. From this point, the preparation of paneer diverges based on its use and regional tradition. In most Nepalese cuisines, the curds are wrapped in cloth, placed under a heavy weight such as a stone slab for two to three hours, and then cut into cubes for use in curries. Pressing for a shorter time (approximately 20 minutes) results in a softer, Figure 23: Paneer Making Machine fluffier cheese. In Bengali and other east Indian cuisines, the chhena are beaten or kneaded by hand into a dough-like consistency, heavily salted and hardened to produce paneer (called ponir), which is typically eaten in slices at teatime with biscuits or various types of bread, deep-fried in a light batter or used in cooking. In the area surrounding the city of Surat in Gujarat, Surti Paneer is made by draining the curds and ripening them in whey for 12 to 36 hours. 6.13. Individual Quick Freezer
IQF is used as a way to freeze seasonal products such as fruits and vegetables, but over the years the technology has enabled other food products to be individually frozen. In Today's world, food preservation is more important than ever before, historically there were many Methods of food preservation, like drying, smoking, pickling, salting etc. These rather primitive methods are still widely used today, not only in backward societies, where no other means are available, but also in modern societies where they serve to supplement the more modern methods of food preservation like refrigeration.
Figure 24: IQF
In the Individual Quick Freezing (IQF) process, unlike other freezing processes, the products are frozen as individual pieces. This offers greater convenience to the consumers and hence adds more value to the product. The Individual Quick Freezers (IQF) process is far superior to the conventional processes. In Quick freezing, small ice crystals form within the product thus its own fresh quality is maintained even after extended shelf life. Most foods can be preserved for a long time if they are frozen quickly and kept at a low temperature until ready for use. Slow, natural freezing destroys food because the low temperatures draw all the water from the tiny cells of the food, affecting color and flavour.
Quick freezing method prevents breakage of the cell walls as the freezing process is so quick. Thus, in quick-frozen food most of the flavour, colour and firmness are retained.
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The IQF freezing uses a bed of super cooled air to suspend and separate solid food products, simultaneously freezing them. Our IQF Conveyor design optimized for directing air evenly towards the product and ensures better quality crust freezing by locking the product moisture before the final core freezing, as well as preserving product weight, appearance and quality. Product Agitator in the pre-cooling section provided to avoid lumping of product. The appeal of IQF frozen fruits and vegetables are near to the much-sought-after appearance, flavour and nutrition as of fresh ones. Individually quick frozen products lock in the essential nutrients and flavour, with optimum colour, taste and texture. The IQF process makes it possible to offer ’fresh picked’ flavours all year round, in packaging convenient for today’s busy consumer. Two-Stage Fluidization System Gives Optimum Freezing Process: The crust freezing zone (belt 1) and the deep freezing zone (belt 2).
Features of FREEZOLINE FST – Straight Belt Series Factory Finished SS Floor with built in Drain arrangement. Automatic air defrost system. Air Defrost system ensure beyond 18 hours of continuous operation without water defrost. The electrical Control Panel includes extreme user friendly PLC touch screen control panel, emergency stop system along with VFDs and UPS control power. Individually adjustable double Belt system for different product processing. High velocity airflow inside freezers ensures high quality of freezing. The air flow is controlled to perfectly suit each product which gives an even temperature throughout the freezer and uniform high product quality. Operate as complete standalone or option to operate in combination with other systems.
Air Defrost System [FROST BUSTER] Straight line IQF units are equipped with automatic Air Defrost system, especially for processing vegetable & fruit products which carry high water percentage. The continuous removal of frost considerably extends the effective operation time and efficiency of freezing thus extending the time intervals between the defrost hence increasing the total daily production capacity over 25-30 %. Air Defrost system runs automatic with help of PLC based control system. The continuous air jet will remove frost from coil and prevent frost built- up during working, which results better air flow through coil and enhanced heat transfer.
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Chapter 7: Indicative Project Profile for Rajasthan
7.1. Small Scale Unit – 100 KLPD
Under this section, project profile of PLC based small scale milk processing unit with capacity of 1,00,000 litres per day with multiple milk product is shown.
7.1.1. Capacity Utilization
Particulars Y1 Y2 Y3 Y4 Y5 Capacity utilization 50% 55.00% 60.00% 65.00% 70.00% No. of operation days 183 201 219 237 256 18,250,00 20,075,00 21,900,00 23,725,00 25,550,00 Raw Milk required per year 0 0 0 0 0 Milk Powder required per year 912,500 1,003,750 1,095,000 1,186,250 1,277,500 10,950,00 12,045,00 13,140,00 14,235,00 15,330,00 Cow Milk 0 0 0 0 0 10,220,00 Buffalo 7,300,000 8,030,000 8,760,000 9,490,000 0 Product Wise Milk Distribution
( In Litres) Ghee 10,037,50 10,950,00 11,862,50 12,775,00 Pouch Milk 9,125,000 0 0 0 0 Paneer 3,650,000 4,015,000 4,380,000 4,745,000 5,110,000 Dahi 1,825,000 2,007,500 2,190,000 2,372,500 2,555,000 Lassi 912,500 1,003,750 1,095,000 1,186,250 1,277,500 Flavour Milk 1,825,000 2,007,500 2,190,000 2,372,500 2,555,000 Butter Milk 912,500 1,003,750 1,095,000 1,186,250 1,277,500 Product Obtained Ghee 219,000 240,900 262,800 284,700 306,600 10,037,50 10,950,00 11,862,50 12,775,00 Pouch Milk 9,125,000 0 0 0 0 Paneer 730,000 803,000 876,000 949,000 1,022,000 Dahi 1,825,000 2,007,500 2,190,000 2,372,500 2,555,000 Lassi 912,500 1,003,750 1,095,000 1,186,250 1,277,500 Flavour Milk 1,825,000 2,007,500 2,190,000 2,372,500 2,555,000 Butter Milk 1,825,000 2,007,500 2,190,000 2,372,500 2,555,000 Ice Cream 1,368,750 1,505,625 1,642,500 1,779,375 1,916,250
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7.1.2. Land and Building
Sr. No. Particular Unit No. of Unit Rate per unit Total Value 1 Land Acres 1 1000000 1,000,000 2 Building Sq. ft. 60000 600 36,000,000 Total 37,000,000
7.1.3. Machinery and Equipment
Sr. No. Description No. Required Rate Total Value
1 RMRD Section 1 3,776,000 3,776,000
2 RMRD Laboratory 1 1,003,000 1,003,000
3 Raw Milk Processing Section 1 14,160,000 14,160,000
4 Cold Room 1 3,540,000 3,540,000
5 Cream Storage Section 1 2,724,600 2,724,600
6 Butter Section 1 1,256,700 1,256,700
7 Ghee Section 1 2,767,100 2,767,100
8 Paneer Section 8,850,000 8,850,000
9 Blast Freezer 1 3,540,000 3,540,000
10 Curd & Srikhand / Amarkhand 1 6,323,620 6,323,620
11 Butter Milk/ Lassi/ Flavour Milk Section 1 2,737,600 2,737,600
12 Utility Section 1 32,273,000 32,273,000
Total 82,951,620
7.1.4. Furniture and Fixtures No. Sr. No. Particular Rate Total Value Required
Miscellaneous fixed assets 4000000 4000000 1 (furniture, fixtures, firefighting 1
equipment, first-aid equipment)
Sub Total 4000000 4000000 Total
7.1.5. Preliminary and Pre-Operative Expenses
Sr. No. Particular Amount 1 Legal Charges 1,000,000 2 IDC (interest during construction) 6,240,105 3 Loan Processing Fee 283,641 Total 7,523,746
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7.1.6. Working Capital
Total Value Sr. No. Item Year-I Year-II Year-III Year-IV Year-V Stock Raw 1 Material (Milk) 1,500,000 1,732,500 1,984,500 2,257,369 2,552,563 @ 2 days Stock of wood 2 393,750 454,781 520,931 592,559 670,048 @ 15 days Stock of packing 3 1,455,600 1,681,218 1,925,759 2,190,551 2,477,007 material @ 8 days Trade 4 receivables @ 45,975,000 53,101,125 60,824,925 69,188,352 78,236,060 15 days Stock finished 5 goods @ 6 18,390,000 21,240,450 24,329,970 27,675,341 31,294,424 days Creditors - raw 6 material @ 12 9,000,000 10,395,000 11,907,000 13,544,213 15,315,379 days Working Capital 76,714,350 88,605,074 101,493,085 115,448,384 130,545,481 Requirement Margin @ 20% 15,342,870 17,721,015 20,298,617 23,089,677 26,109,096 WC loan 61,371,480 70,884,059 81,194,468 92,358,707 104,436,385
7.1.7. Total Project Cost
Sr. No. Particular Total Value 1 Land and Building 37,000,000 2 Machinery and Equipment 82,951,620 3 Furniture and Fixture 4,000,000 4 P&P Expenses 7,523,746 5 Working Capital 15,342,870 Total 146,818,236
7.1.8. Means of Finance
Sr. No. Particular Amount 1 Own Contribution 48,456,940 2 Bank Finance - Long Term Loan 56,728,229 3 Grant/ Subsidy 41,633,067 Total 146,818,236
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7.1.9. Operational Expenses
Number Sr. Particulars Unit Cost I II III IV V of Unit A. Fixed ` Administration Expense 3,000,000 3,000,000 3,150,000 3,307,500 3,472,875 3,646,519 Repair and Maintenance (0.5% @ P&M and Civil) 0.5% 594,758 624,496 655,721 688,507 722,932 Insurance (0.5% @ P&M) 0.5% 414,758 435,496 457,271 480,134 504,141 Electricity Charges - Fixed (1000 KVA @ INR 3000 per KVA per month) 1000 165.00 1,980,000 2,079,000 2,182,950 2,292,098 2,406,702 Indirect Employees (25 Employees @ INR 30,000 per month) 35 45000 18,900,000 19,845,000 20,837,250 21,879,113 22,973,068 Sub-Total 24,889,516 26,133,992 27,440,692 28,812,726 30,253,363 B Variable Cost Raw Milk - Cow Milk (INR 25 per litre) 25 273,750,000 316,181,250 362,171,250 411,969,797 465,842,770 Raw Milk - Buffalo Milk (INR 35 per litre) 35 182,500,000 210,787,500 241,447,500 274,646,531 310,561,847 Milk Powder (INR 200 per kg) 200 182,500,000 210,787,500 241,447,500 274,646,531 310,561,847 Consumables Grease/ Oil (3000 kg per month @ INR 300 per kg) 4500 300 16,200,000 17,010,000 17,860,500 18,753,525 19,691,201 Sugar/Salt/Additives (INR 0.5 per litre of Milk/ per kg of milk powder used) 1 19,162,500 22,132,688 25,351,988 28,837,886 32,608,994 Fuel Charges (10500 kg per day @ INR 3.5 per kg) 15000 3.5 9,581,250 11,066,344 12,675,994 14,418,943 16,304,497 Direct Employees/ Labour (2250 Employees @ INR 15,000 per month) 225 15000 40,500,000 42,525,000 44,651,250 46,883,813 49,228,003 Electricity Charges - Variable (480 Units @ INR 7 per hour @ 10 hours per day) 480 7.00 6,132,000 7,082,460 8,112,636 9,228,123 10,434,878 Water Charges (2,00,000 Litre water @ INR 0.05 per litre per day) 250000 0.05 2,281,250 2,634,844 3,018,094 3,433,082 3,882,023 Commission to MCC (INR 1 Commission per litre of milk collected) 1.00 18,250,000 21,078,750 24,144,750 27,464,653 31,056,185 Commission to Agent (INR 3 Commission per litre/ kg of milk product sold) 3.00 53,490,750 61,781,816 70,768,262 80,498,898 91,025,677 Advertisement and Sales Expense (2% of total revenue) 2% 22,374,500 25,842,548 29,601,464 33,671,665 38,074,882 Packaging Cost - Pouch Milk, Flavour Milk, Butter Milk and Dahi (INR 2 per litre) 3.00 43,800,000 50,589,000 57,947,400 65,915,168 74,534,843 Packaging Cost - Other Product (INR 7 per litre) 7.00 22,611,750 26,116,571 29,915,345 34,028,705 38,478,613
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Number Sr. Particulars Unit Cost I II III IV V of Unit Transportation - Raw Milk (INR 1.25 per litre of raw milk procured) 1.25 22,812,500 26,348,438 30,180,938 34,330,816 38,820,231 Transportation - Milk Product (INR 2.5 per litre/ kg of product sold) 2.50 44,575,625 51,484,847 58,973,552 67,082,415 75,854,731 Sub-Total 960,522,125 1,103,449,554 1,258,268,421 1,425,810,551 1,606,961,223 Total 985,411,641 1,129,583,546 1,285,709,113 1,454,623,277 1,637,214,585
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7.1.10. Depreciation and Amortization
As per company’s act
Particulars Y1 Y2 Y3 Y4 Y5 Assets Land Asset Value 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Net Fixed Assets 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Building 30,600,00 28,800,00 Asset Value 36,000,000 34,200,000 32,400,000 0 0 Depreciation 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 Accumulated Depreciation 1,800,000 3,600,000 5,400,000 7,200,000 9,000,000 28,800,00 27,000,00 Net Fixed Assets 34,200,000 32,400,000 30,600,000 0 0 Plant and Machinery 58,066,13 49,770,97 Asset Value 82,951,620 74,656,458 66,361,296 4 2 Depreciation 8,295,162 8,295,162 8,295,162 8,295,162 8,295,162 33,180,64 41,475,81 Accumulated Depreciation 8,295,162 16,590,324 24,885,486 8 0 49,770,97 41,475,81 Net Fixed Assets 74,656,458 66,361,296 58,066,134 2 0 Furniture and
Electrification Asset Value 4,000,000 3,600,000 3,200,000 2,800,000 2,400,000 Depreciation 400,000 400,000 400,000 400,000 400,000 Accumulated Depreciation 400,000 800,000 1,200,000 1,600,000 2,000,000 Net Fixed Assets 3,600,000 3,200,000 2,800,000 2,400,000 2,000,000 123,951,62 113,456,45 102,961,29 92,466,13 81,970,97 Gross Fixed Asset 0 8 6 4 2 10,495,16 10,495,16 Total Depreciation 10,495,162 10,495,162 10,495,162 2 2 41,980,64 52,475,81 Accumulated Depreciation 10,495,162 20,990,324 31,485,486 8 0 113,456,45 102,961,29 81,970,97 71,475,81 Net Fixed Assets 92,466,134 8 6 2 0
As per IT act
Particulars Y1 Y2 Y3 Y4 Y5 Assets Land Asset Value 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Net Fixed Assets 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Building 29,160,00 26,244,00 23,619,60 Asset Value 36,000,000 32,400,000 0 0 0
Rajasthan Agricultural Competitiveness Project 64
Depreciation 3,600,000 3,240,000 2,916,000 2,624,400 2,361,960 12,380,40 14,742,36 Accumulated Depreciation 3,600,000 6,840,000 9,756,000 0 0 26,244,00 23,619,60 21,257,64 Net Fixed Assets 32,400,000 29,160,000 0 0 0 Plant and Machinery 59,932,54 50,942,66 43,301,26 Asset Value 82,951,620 70,508,877 5 4 4 Depreciation 12,442,743 10,576,332 8,989,882 7,641,400 6,495,190 32,008,95 39,650,35 46,145,54 Accumulated Depreciation 12,442,743 23,019,075 6 6 6 50,942,66 43,301,26 36,806,07 Net Fixed Assets 70,508,877 59,932,545 4 4 4 Furniture and
Electrification Asset Value 4,000,000 3,600,000 3,240,000 2,916,000 2,624,400 Depreciation 400,000 360,000 324,000 291,600 262,440 Accumulated Depreciation 400,000 760,000 1,084,000 1,375,600 1,638,040 Net Fixed Assets 3,600,000 3,240,000 2,916,000 2,624,400 2,361,960 123,951,62 107,508,87 93,332,54 81,102,66 70,545,26 Gross Fixed Asset 0 7 5 4 4 12,229,88 10,557,40 Total Depreciation 16,442,743 14,176,332 9,119,590 2 0 42,848,95 53,406,35 62,525,94 Accumalated Depreciation 16,442,743 30,619,075 6 6 6 107,508,87 81,102,66 70,545,26 61,425,67 Net Fixed Assets 93,332,545 7 4 4 4
7.1.11. Revenue Schedule Rat Particular Y1 Y2 Y3 Y4 Y5 e Ghee 300 65,700,000 75,883,500 86,921,100 98,872,751 111,802,265 Pouch Milk 30 273,750,000 316,181,250 362,171,250 411,969,797 465,842,770 Paneer 280 204,400,000 236,082,000 270,421,200 307,604,115 347,829,269 Dahi 55 100,375,000 115,933,125 132,796,125 151,055,592 170,809,016 Lassi 75 68,437,500 79,045,313 90,542,813 102,992,449 116,460,693 Flavour 85 155,125,000 179,169,375 205,230,375 233,449,552 263,977,570 Milk Butter Milk 25 45,625,000 52,696,875 60,361,875 68,661,633 77,640,462 Ice Cream 150 205,312,500 237,135,938 271,628,438 308,977,348 349,382,078 1,118,725,00 1,292,127,37 1,480,073,17 1,683,583,23 1,903,744,12 Total 0 5 5 7 1
Rajasthan Agricultural Competitiveness Project 65
7.1.12. Term Loan Outstanding Disburseme Repayment Year at end of the Interest Net benefit nt year Principal Interest 1 2 3 4 5 6 7 Rs. Rs. Rs. Rs. 1st Rs. 9,108,869 Rs. 6,240,105 56,728,229 56,728,229 6,240,105 121,313,448 Rs. Rs. Rs. Rs. 2nd Rs. 5,238,130 47,619,360 5,238,130 150,543,917 10,110,845 Rs. Rs. Rs. Rs. 3rd Rs. 4,125,937 37,508,515 4,125,937 182,364,151 11,223,038 Rs. Rs. Rs. Rs. 4th Rs. 2,891,402 26,285,477 2,891,402 216,960,048 12,457,572 Rs. Rs. Rs. Rs. 5th Rs. 1,521,070 13,827,905 1,521,070 254,529,625 13,827,905 Tota Rs. Rs. Rs.
l 56,728,229 56,728,229 20,016,643
Rajasthan Agricultural Competitiveness Project 66
7.1.13. Cash Flow Statement
Sr.No Particulars Year ( 1 ) Year ( 2 ) Year ( 3 ) Year ( 4 ) Year ( 5 ) 1 Revenue Total Revenue 1,118,725,000 1,292,127,375 1,480,073,175 1,683,583,237 1,903,744,121 2 Equity/ Share capital 48,456,940 3 Grant 41,633,067 4 Long Term Loan 56,728,229 5 Short Term Loan 61,371,480 70,884,059 81,194,468 92,358,707 104,436,385 4 Amortization 1,504,749 1,504,749 1,504,749 1,504,749 1,504,749 5 Depreciation 10,495,162 10,495,162 10,495,162 10,495,162 10,495,162 Sub Total (A) 1,338,914,628 1,375,011,346 1,573,267,554 1,787,941,855 2,020,180,417 Cash Outflow (Rs.) 1 Capital Expenditure a Furniture and Fixtures 4,000,000 b IT and Infrastructure - c Land and Building 37,000,000 d Plant and Machinery 82,951,620 e Preliminary Expenses 7,523,746 2 Operational Expenditure a Fixed Cost 36,889,427 38,133,903 39,440,603 40,812,637 42,253,274 b Variable Cost 960,522,125 1,103,449,554 1,258,268,421 1,425,810,551 1,606,961,223 3 Loan LTL - Principal 9,108,869 10,110,845 11,223,038 12,457,572 13,827,905 LTL - Interest 6,240,105 5,238,130 4,125,937 2,891,402 1,521,070 STL - Principal 61,371,480 70,884,059 81,194,468 92,358,707 104,436,385
Rajasthan Agricultural Competitiveness Project 67
STL - Interest 8,592,007.20 9,923,768.32 11,367,225.53 12,930,219.04 14,621,093.83 4 Dividend 5 Tax 31,944,401 40,614,606 50,061,297 60,341,528 71,516,238 Sub Total (B) 1,246,143,781 1,278,354,866 1,455,680,989 1,647,602,617 1,855,137,188 Net Cash Flow (A-B) 92,770,847 96,656,480 117,586,565 140,339,238 165,043,229 Opening Cash and Bank 92,770,847 189,427,327 307,013,892 447,353,130 Cumulative Cash Balance 92,770,847 189,427,327 307,013,892 447,353,130 612,396,359
7.1.14. Balance Sheet
Particulars Y1 Y2 Y3 Y4 Y5 ASSETS Current Assets Cash and Bank Balance 92,770,847 189,427,327 307,013,892 447,353,130 612,396,359 Total Current Assets 92,770,847 189,427,327 307,013,892 447,353,130 612,396,359 Gross Fixed Assets 123,951,620 113,456,458 102,961,296 92,466,134 81,970,972 Less: Depreciation 10,495,162 10,495,162 10,495,162 10,495,162 10,495,162 Net Fixed Assets 113,456,458 102,961,296 92,466,134 81,970,972 71,475,810 Preliminary Expenses 6,018,997 4,514,248 3,009,499 1,504,749 0 TOTAL ASSETS 212,246,302 296,902,870 402,489,525 530,828,851 683,872,169 LIABILITIES & SHAREHOLDERS EQUITY CURRENT LIABILITIES Long Term Debt 47,619,360 37,508,515 26,285,477 13,827,905 0 TOTAL LIABILITIES 47,619,360 37,508,515 26,285,477 13,827,905 0 Share capital 48,456,940 48,456,940 48,456,940 48,456,940 48,456,940 MoFPI Grant 41,633,067 41,633,067 41,633,067 41,633,067 41,633,067 Reserves and Surplus
Rajasthan Agricultural Competitiveness Project 68
Add: Opening Balance (P/L Account) 0 74,536,935 169,304,348 286,114,040 426,910,939 Profit & Loss) During the Year 74,536,935 94,767,414 116,809,692 140,796,898 166,871,223 Appropriation - Dividend Total Reserves 74,536,935 169,304,348 286,114,040 426,910,939 593,782,162 TOTAL EQUITY 164,626,942 259,394,356 376,204,048 517,000,946 683,872,169 TOTAL LIABILITIES & EQUITY 212,246,302 296,902,870 402,489,525 530,828,851 683,872,169
7.1.15. P & L Statement
Particulars Y1 Y2 Y3 Y4 Y5 Total Revenue 1,118,725,000 1,292,127,375 1,480,073,175 1,683,583,237 1,903,744,121 Total Revenue 1,118,725,000 1,292,127,375 1,480,073,175 1,683,583,237 1,903,744,121 Fixed Cost 24,889,516 26,133,992 27,440,692 28,812,726 30,253,363 Variable Cost 960,522,125 1,103,449,554 1,258,268,421 1,425,810,551 1,606,961,223 Total Operational Expenses 985,411,641 1,129,583,546 1,285,709,113 1,454,623,277 1,637,214,585 Earnings Before Interest, Depreciation, Taxes and Amortization (EBITDA) 133,313,359 162,543,829 194,364,062 228,959,959 266,529,536 Depreciation 10,495,162 10,495,162 10,495,162 10,495,162 10,495,162 Amortization 1,504,749 1,504,749 1,504,749 1,504,749 1,504,749 Earnings Before Interest and Taxes (EBIT) 121,313,448 150,543,917 182,364,151 216,960,048 254,529,625 Interest Expense 14,832,112 15,161,898 15,493,162 15,821,621 16,142,163 Earnings Before Taxes (EBT) 106,481,335 135,382,019 166,870,989 201,138,426 238,387,461 Tax 31,944,401 40,614,606 50,061,297 60,341,528 71,516,238 Earnings After Taxes (EAT) 74,536,935 94,767,414 116,809,692 140,796,898 166,871,223 Profit (loss) carried to Balance Sheet 74,536,935 94,767,414 116,809,692 140,796,898 166,871,223
Rajasthan Agricultural Competitiveness Project 69
7.1.16. Financial Indicator Internal Rate of Return (IRR): The project internal rate of return should be more than 10% as per the current financial scenario of the country. The project IRR is 69.08% therefore it is clearly indicating that the project is feasible for investment.
Break Even Point: The average break-even percentage is 18.28% and as per financial standards it should be below 60%. Payback Period: The Payback period for the project is 1 year and 10 months. It should be less than 4 to 5 years therefore the project payback periods are within the limit. Net Present Value With a discount rate of 10% and a span of 5 years, the projected cash inflows are worth Rs. 479,111,058 today, which is greater than the initial cash outflow of Rs. 146,818,236. The resulting positive NPV of the above project is Rs. 332,292,822 which indicates that pursuing the above project may be optimal. Return on Capital Employed The return on capital employed for the project is 80.9 % which is above the expected financial standards.
Rajasthan Agricultural Competitiveness Project 70
7.2. Small Scale Unit – 50 KLPD
Under this section, project profile of PLC based small scale milk processing unit with capacity of 50,000 litre per day with multiple milk product is shown.
7.2.1. Capacity
Capacity utilization 50% 55.00% 60.00% 65.00% 70.00% No. of operation days 183 201 219 237 256 9,125,00 10,037,50 10,950,00 11,862,50 12,775,00 Raw Milk required per year 0 0 0 0 0 Milk Powder required per year 912,500 1,003,750 1,095,000 1,186,250 1,277,500 5,475,00 Cow Milk 6,022,500 6,570,000 7,117,500 7,665,000 0 3,650,00 Buffalo 4,015,000 4,380,000 4,745,000 5,110,000 0 Product Wise Milk
Distribution 4,562,50 Pouch Milk (CM) 5,018,750 5,475,000 5,931,250 6,387,500 0 1,825,00 Paneer 2,007,500 2,190,000 2,372,500 2,555,000 0 Dahi 912,500 1,003,750 1,095,000 1,186,250 1,277,500 Lassi 456,250 501,875 547,500 593,125 638,750 Flavour (CM) 912,500 1,003,750 1,095,000 1,186,250 1,277,500 Butter Milk 456,250 501,875 547,500 593,125 638,750 Product Obtained Ghee 109,500 120,450 131,400 142,350 153,300 4,562,50 Pouch Milk 5,018,750 5,475,000 5,931,250 6,387,500 0 Paneer 365,000 401,500 438,000 474,500 511,000 Dahi 912,500 1,003,750 1,095,000 1,186,250 1,277,500 Lassi 684,375 752,813 821,250 889,688 958,125 Flavour Milk 912,500 1,003,750 1,095,000 1,186,250 1,277,500 Butter Milk 912,500 1,003,750 1,095,000 1,186,250 1,277,500 1,368,75 Ice Cream 1,505,625 1,642,500 1,779,375 1,916,250 0
7.2.2. Land and Building
Sr. No. Particular Unit No. of Unit Rate per unit Total Value 1 Land Acres 1 1000000 1,000,000 2 Building Sq. Ft. 30000 600 18,000,000 Total 19,000,000
7.2.3. Machinery and Equipment
Sr. No. Description No. Required Rate Total Value
1 RMRD Section 1 2,615,000 2,615,000
2 RMRD Laboratory 1 850,000 850,000
3 Raw Milk Processing Section 1 9,950,000 9,950,000
4 Cold Room 1 2,000,000 2,000,000
5 Cream Storage Section 1 1,670,000 1,670,000
Rajasthan Agricultural Competitiveness Project 71
Sr. No. Description No. Required Rate Total Value
6 Butter Section 1 540,000 540,000
7 Paneer Section 1 2,600,000 2,600,000
8 Blast Freezer 1 2,000,000 2,000,000
9 Curd & Srikhand / Amarkhand 1 2,460,000 2,460,000
10 Butter Milk/ Lassi/ Flavour Milk Section 1 1,760,000 1,760,000
11 Utility Section 1 17,150,000 17,150,000
Total 43,595,000
7.2.4. Furniture and Fixtures
Sr. No. Particular No. Required Rate Total Value
Miscellaneous fixed assets 1 (furniture, fixtures, firefighting 1 2500000 2500000 equipment, first-aid equipment)
Sub Total 2500000
Total 2500000
7.2.5. Preliminary and Pre-Operative Expenses
Sr. No. Particular Amount 1 Legal Charges 1,000,000 2 IDC (interest during construction) 3,268,953 3 Loan Processing Fee 148,589 Total 4,417,541
7.2.6. Working Capital
Total Value Sr. No. Item Year-I Year-II Year-III Year-IV Year-V Stock Raw 1 Material (Milk) @ 750,000 866,250 992,250 1,128,684 1,276,282 2 days Stock of wood @ 2 275,625 318,347 364,652 414,792 469,033 15 days Stock of packing 3 867,800 1,002,309 1,148,099 1,305,963 1,476,743 material @ 8 days Trade receivables 4 27,909,375 32,235,328 36,924,103 42,001,167 47,493,628 @ 15 days Stock finished 5 11,163,750 12,894,131 14,769,641 16,800,467 18,997,451 goods @ 6 days Creditors - raw 6 material @ 12 4,500,000 5,197,500 5,953,500 6,772,106 7,657,689 days Working Capital 45,466,550 52,513,865 60,152,246 68,423,179 77,370,826 Requirement Margin @ 20% 9,093,310 10,502,773 12,030,449 13,684,636 15,474,165 WC loan 36,373,240 42,011,092 48,121,797 54,738,544 61,896,661
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7.2.7. Total Project Cost
Sr. No. Particular Total Value
1 Land and Building 19,000,000 2 Machinery and Equipment 43,595,000 3 Furniture and Fixture 2,500,000 4 P&P Expenses 4,417,541 5 Working Capital 9,093,310 Total 78,605,851
7.2.8. Means of Finance
Sr. No. Particular Amount 1 Own Contribution 27,329,851 2 Bank Finance - Long Term Loan 29,717,750 3 Grant/ Subsidy 21,558,250 Total 78,605,851
Rajasthan Agricultural Competitiveness Project 73
7.2.9. Operational Expenses Number Sr. Particulars Unit Cost I II III IV V of Unit A. Fixed Administration Expense 2,000,000 2,000,000 2,100,000 2,205,000 2,315,250 2,431,013 Repair and Maintenance (0.5% @ P&M and Civil) 0.5% 307,975 323,374 339,542 356,520 374,346 Insurance (0.5% @ P&M) 0.5% 217,975 228,874 240,317 252,333 264,950 Electricity Charges - Fixed (1000 KVA @ INR 3000 per KVA per month) 1000 165.00 1,980,000 2,079,000 2,182,950 2,292,098 2,406,702 Indirect Employees (25 Employees @ INR 30,000 per month) 25 30000 9,000,000 9,450,000 9,922,500 10,418,625 10,939,556 Sub-Total 13,505,950 14,181,248 14,890,310 15,634,825 16,416,567 B Variable Cost Raw Milk - Cow Milk (INR 25 per litre) 25 136,875,000 158,090,625 181,085,625 205,984,898 232,921,385 Raw Milk - Buffalo Milk (INR 35 per litre) 35 127,750,000 147,551,250 169,013,250 192,252,572 217,393,293 Milk Powder (INR 200 per kg) 200 182,500,000 210,787,500 241,447,500 274,646,531 310,561,847 Consumables Grease/ Oil (3000 kg per month @ INR 300 per kg) 3000 300 10,800,000 11,340,000 11,907,000 12,502,350 13,127,468 Sugar/Salt/Additives (INR 0.5 per litre of Milk/ per kg of milk powder used) 1 10,037,500 11,593,313 13,279,613 15,105,559 17,080,902 Fuel Charges (10500 kg per day @ INR 3.5 per kg) 10500 3.5 6,706,875 7,746,441 8,873,196 10,093,260 11,413,148 Direct Employees/ Labour (150 Employees @ INR 12,000 per month) 150 12000 21,600,000 22,680,000 23,814,000 25,004,700 26,254,935 Electricity Charges - Variable (240 Units @ INR 5.5 per hour @ 10 hours per day) 320 7.00 4,088,000 4,721,640 5,408,424 6,152,082 6,956,585 Water Charges (2,00,000 Litre water @ INR 0.05 per litre per day) 200000 0.05 1,825,000 2,107,875 2,414,475 2,746,465 3,105,618 Commission to MCC (INR 1 Commission per litre of milk collected) 1.00 9,125,000 10,539,375 12,072,375 13,732,327 15,528,092 Commission to Agent (INR 2 Commission per litre/ kg of milk product sold) 3.00 29,482,875 34,052,721 39,005,844 44,369,147 50,171,266 Advertisement and Sales Expense (2% of total revenue) 2% 13,582,563 15,687,860 17,969,730 20,440,568 23,113,565 Packaging Cost - Pouch Milk, Flavour Milk, Butter Milk and Dahi (INR 2 per litre) 3.00 21,900,000 25,294,500 28,973,700 32,957,584 37,267,422 Packaging Cost - Other Product (INR 7 per litre) 7.00 17,693,375 20,435,848 23,408,335 26,626,981 30,108,971 Transportation - Raw Milk (INR 1.25 per litre of raw milk procured) 1.25 11,406,250 13,174,219 15,090,469 17,165,408 19,410,115 Transportation - Milk Product (INR 2.5 per litre/ kg of product sold) 2.50 24,569,063 28,377,267 32,504,870 36,974,289 41,809,389 Sub-Total 629,941,500 724,180,433 826,268,405 936,754,723 1,056,224,002 Total 643,447,450 738,361,680 841,158,714 952,389,548 1,072,640,568
Rajasthan Agricultural Competitiveness Project 74
7.2.10. Depreciation and Amortization
As per company’s act
Particulars Y1 Y2 Y3 Y4 Y5 Assets Land Asset Value 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Net Fixed Assets 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Building Asset Value 18,000,000 17,100,000 16,200,000 15,300,000 14,400,000 Depreciation 900,000 900,000 900,000 900,000 900,000 Accumulated Depreciation 900,000 1,800,000 2,700,000 3,600,000 4,500,000 Net Fixed Assets 17,100,000 16,200,000 15,300,000 14,400,000 13,500,000 Plant and Machinery Asset Value 43,595,000 39,235,500 34,876,000 30,516,500 26,157,000 Depreciation 4,359,500 4,359,500 4,359,500 4,359,500 4,359,500 Accumulated Depreciation 4,359,500 8,719,000 13,078,500 17,438,000 21,797,500 Net Fixed Assets 39,235,500 34,876,000 30,516,500 26,157,000 21,797,500 Furniture and Electrification Asset Value 2,500,000 2,250,000 2,000,000 1,750,000 1,500,000 Depreciation 250,000 250,000 250,000 250,000 250,000 Accumulated Depreciation 250,000 500,000 750,000 1,000,000 1,250,000 Net Fixed Assets 2,250,000 2,000,000 1,750,000 1,500,000 1,250,000 Gross Fixed Asset 65,095,000 59,585,500 54,076,000 48,566,500 43,057,000 Total Depreciation 5,509,500 5,509,500 5,509,500 5,509,500 5,509,500 Accumalated Depreciation 5,509,500 11,019,000 16,528,500 22,038,000 27,547,500 Net Fixed Assets 59,585,500 54,076,000 48,566,500 43,057,000 37,547,500
As per IT act
Particulars Y1 Y2 Y3 Y4 Y5 Assets
Rajasthan Agricultural Competitiveness Project 75
Particulars Y1 Y2 Y3 Y4 Y5 Land Asset Value 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Net Fixed Assets 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Building Asset Value 18,000,000 16,200,000 14,580,000 13,122,000 11,809,800 Depreciation 1,800,000 1,620,000 1,458,000 1,312,200 1,180,980 Accumulated Depreciation 1,800,000 3,420,000 4,878,000 6,190,200 7,371,180 Net Fixed Assets 16,200,000 14,580,000 13,122,000 11,809,800 10,628,820 Plant and Machinery Asset Value 43,595,000 37,055,750 31,497,388 26,772,779 22,756,862 Depreciation 6,539,250 5,558,363 4,724,608 4,015,917 3,413,529 Accumulated Depreciation 6,539,250 12,097,613 16,822,221 20,838,138 24,251,667 Net Fixed Assets 37,055,750 31,497,388 26,772,779 22,756,862 19,343,333 Furniture and Electrification Asset Value 2,500,000 2,250,000 2,025,000 1,822,500 1,640,250 Depreciation 250,000 225,000 202,500 182,250 164,025 Accumulated Depreciation 250,000 475,000 677,500 859,750 1,023,775 Net Fixed Assets 2,250,000 2,025,000 1,822,500 1,640,250 1,476,225 Gross Fixed Asset 65,095,000 56,505,750 49,102,388 42,717,279 37,206,912 Total Depreciation 8,589,250 7,403,363 6,385,108 5,510,367 4,758,534 Accumalated Depreciation 8,589,250 15,992,613 22,377,721 27,888,088 32,646,622 Net Fixed Assets 56,505,750 49,102,388 42,717,279 37,206,912 32,448,378
7.2.11. Revenue Schedule
Particular Rate Y1 Y2 Y3 Y4 Y5 Ghee 300 32,850,000 37,941,750 43,460,550 49,436,376 55,901,132 Pouch Milk 30 136,875,000 158,090,625 181,085,625 205,984,898 232,921,385 Paneer 280 102,200,000 118,041,000 135,210,600 153,802,058 173,914,634 Dahi 55 50,187,500 57,966,563 66,398,063 75,527,796 85,404,508
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Particular Rate Y1 Y2 Y3 Y4 Y5 Lassi 75 51,328,125 59,283,984 67,907,109 77,244,337 87,345,519 Flavour Milk 85 77,562,500 89,584,688 102,615,188 116,724,776 131,988,785 Butter Milk 25 22,812,500 26,348,438 30,180,938 34,330,816 38,820,231 Ice Cream 150 205,312,500 237,135,938 271,628,438 308,977,348 349,382,078 Total 679,128,125 784,392,984 898,486,509 1,022,028,404 1,155,678,273
7.2.12. Term Loan
Outstanding at end Repayment Year Disbursement Interest Net benefit of the year Principal Interest 1 2 3 4 5 6 7 1st Rs. 29,717,750 Rs. 29,717,750 Rs. 3,268,953 Rs. 29,287,667 Rs. 4,771,788 Rs. 3,268,953 2nd Rs. 24,945,962 Rs. 2,744,056 Rs. 39,638,296 Rs. 5,296,685 Rs. 2,744,056 3rd Rs. 19,649,277 Rs. 2,161,420 Rs. 50,934,787 Rs. 5,879,320 Rs. 2,161,420 4th Rs. 13,769,956 Rs. 1,514,695 Rs. 63,245,848 Rs. 6,526,046 Rs. 1,514,695 5th Rs. 7,243,911 Rs. 796,830 Rs. 76,644,696 Rs. 7,243,911 Rs. 796,830 Total Rs. 29,717,750 Rs. 29,717,750 Rs. 10,485,954
7.2.13. Cash Flow Statement
Sr.No Particulars Year ( 1 ) Year ( 2 ) Year ( 3 ) Year ( 4 ) Year ( 5 ) 1 Revenue Total Revenue 679,128,125 784,392,984 898,486,509 1,022,028,404 1,155,678,273 2 Equity/ Share capital 27,329,851 3 Grant 21,558,250 4 Long Term Loan 29,717,750 5 Short Term Loan 36,373,240 42,011,092 48,121,797 54,738,544 61,896,661 4 Amortization 883,508 883,508 883,508 883,508 883,508 5 Depreciation 5,509,500 5,509,500 5,509,500 5,509,500 5,509,500 Sub Total (A) 800,500,225 832,797,085 953,001,314 1,083,159,956 1,223,967,942 Cash Outflow (Rs.)
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Sr.No Particulars Year ( 1 ) Year ( 2 ) Year ( 3 ) Year ( 4 ) Year ( 5 ) 1 Capital Expenditure a Furniture and Fixtures 2,500,000 b Land and Building 19,000,000 c Plant and Machinery 43,595,000 d Preliminary Expenses 4,417,541 2 Operational Expenditure a Fixed Cost 19,898,958 20,574,256 21,283,318 22,027,834 22,809,575 b Variable Cost 629,941,500 724,180,433 826,268,405 936,754,723 1,056,224,002 3 Loan LTL - Principal 4,771,788 5,296,685 5,879,320 6,526,046 7,243,911 LTL - Interest 3,268,953 2,744,056 2,161,420 1,514,695 796,830 STL - Principal 36,373,240 42,011,092 48,121,797 54,738,544 61,896,661 STL - Interest 5,092,253.60 5,881,552.91 6,737,051.51 7,663,396.10 8,665,532.51 4 Dividend 5 Tax 6,277,938 9,303,806 12,610,894 16,220,327 20,154,700 Sub Total (B) 775,137,172 809,991,880 923,062,206 1,045,445,564 1,177,791,211 Net Cash Flow (A-B) 25,363,052 22,805,204 29,939,108 37,714,392 46,176,731 Opening Cash and Bank 25,363,052 48,168,257 78,107,365 115,821,757 Cumulative Cash Balance 25,363,052 48,168,257 78,107,365 115,821,757 161,998,489
7.2.14. Balance Sheet
Particulars Year ( 1 ) Year ( 2 ) Year ( 3 ) Year ( 4 ) Year ( 5 ) ASSETS Current Assets Cash and Bank Balance 25,363,052 48,168,257 78,107,365 115,821,757 161,998,489 Other Current Assets Total Current Assets 25,363,052 48,168,257 78,107,365 115,821,757 161,998,489 Gross Fixed Assets 65,095,000 59,585,500 54,076,000 48,566,500 43,057,000 Less: Depriciation 5,509,500 5,509,500 5,509,500 5,509,500 5,509,500
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Particulars Year ( 1 ) Year ( 2 ) Year ( 3 ) Year ( 4 ) Year ( 5 ) Net Fixed Assets 59,585,500 54,076,000 48,566,500 43,057,000 37,547,500 Preliminary Expenses 3,534,033 2,650,525 1,767,017 883,508 0 TOTAL ASSETS 88,482,585 104,894,782 128,440,882 159,762,266 199,545,989 LIABILITIES & SHAREHOLDERS EQUITY CURRENT LIABILITIES Long Term Debt 24,945,962 19,649,277 13,769,956 7,243,911 0 TOTAL LIABILITIES 24,945,962 19,649,277 13,769,956 7,243,911 0 Share capital 27,329,851 27,329,851 27,329,851 27,329,851 27,329,851 MoFPI Grant 21,558,250 21,558,250 21,558,250 21,558,250 21,558,250 Reserves and Surplus Add: Opening Balance (P/L Account) 0 14,648,522 36,357,404 65,782,824 103,630,254 Profit & Loss) During the Year 14,648,522 21,708,881 29,425,420 37,847,430 47,027,634 Total Reserves 14,648,522 36,357,404 65,782,824 103,630,254 150,657,887 TOTAL EQUITY 63,536,624 85,245,505 114,670,925 152,518,355 199,545,989 TOTAL LIABILITIES & EQUITY 88,482,585 104,894,782 128,440,882 159,762,266 199,545,989
7.2.15. P & L Statement
Particulars Y1 Y2 Y3 Y4 Y5 Total Revenue 679,128,125 784,392,984 898,486,509 1,022,028,404 1,155,678,273 Total Revenue 679,128,125 784,392,984 898,486,509 1,022,028,404 1,155,678,273 Fixed Cost 13,505,950 14,181,248 14,890,310 15,634,825 16,416,567 Variable Cost 629,941,500 724,180,433 826,268,405 936,754,723 1,056,224,002 Total Operational Expenses 643,447,450 738,361,680 841,158,714 952,389,548 1,072,640,568 Earnings Before Interest, Depreciation, Taxes and Amortization (EBITDA) 35,680,675 46,031,304 57,327,795 69,638,856 83,037,705 Depreciation 5,509,500 5,509,500 5,509,500 5,509,500 5,509,500 Amortization 883,508 883,508 883,508 883,508 883,508 Earnings Before Interest and Taxes (EBIT) 29,287,667 39,638,296 50,934,787 63,245,848 76,644,696 Interest Expense 8,361,206 8,625,609 8,898,472 9,178,091 9,462,363 Earnings Before Taxes (EBT) 20,926,461 31,012,687 42,036,315 54,067,757 67,182,334
Rajasthan Agricultural Competitiveness Project 79
Tax 6,277,938.20 9,303,806 12,610,894 16,220,327 20,154,700 Earnings After Taxes (EAT) 14,648,522 21,708,881 29,425,420 37,847,430 47,027,634 Profit (loss) carried to Balance Sheet 14,648,522 21,708,881 29,425,420 37,847,430 47,027,634
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7.2.16. Financial Indicator
Internal Rate of Return (IRR):
The project internal rate of return should be more than 10% as per the current financial scenario of the country. The project IRR is 30.22% therefore it is clearly indicating that the project is feasible for investment. Break Even Point: The average break-even percentage is 30.57% and as per financial standards it should be below 60%. Payback Period: The Payback period for the project is 2 Years and 10 months. It should be less than 4 to 5 years therefore the project payback periods are within the limit. Net Present Value With a discount rate of 10% and a span of 5 years, the projected cash inflows are worth Rs. 132,651,112 today, which is greater than the initial cash outflow of Rs. 78,605,851. The resulting positive NPV of the above project is Rs. 54,045,261 which indicates that pursuing the above project may be optimal. Return on Capital Employed The return on capital employed for the project is 38.3 % which is above the expected financial standards.
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7.3. Micro Scale Unit – 5 KLPD
Under this section, project profile of micro scale milk processing unit with capacity of 5,000 litre per day is shown. The major machine under this project profile is Bulk Milk Chiller with capacity of 5KL and 2KL. This project profile is suitable for new established FPO, which will procure milk from cluster villages and will bring to stationed BMC, further the milk will be supplied to big processors.
7.3.1. Capacity
Particulars Y1 Y2 Y3 Y4 Y5 Capacity utilization 50% 55.00% 60.00% 65.00% 70.00% No. of operation days 183 201 219 237 256 Raw Milk required per year 912,500 1,003,750 1,095,000 1,186,250 1,277,500 Product Wise Milk Distribution Butter/ Ghee Loose Milk - CM 456,250 501,875 547,500 593,125 638,750 Loose Milk - BM 456,250 501,875 547,500 593,125 638,750 Loose Milk - CM 456,250 501,875 547,500 593,125 638,750 Loose Milk - BM 456,250 501,875 547,500 593,125 638,750
7.3.2. Land and Building
Sr. No. Particular Unit No. of Unit Rate per unit Total Value 1 Land Acres 0.25 1000000 250,000 2 Building Sq. Ft. 1000 300 300,000 Total 550,000
7.3.3. Machinery and Equipment
No. Sr. No. Description Rate Total Value Required 1 BMC (2 KL) 2 400,000 800,000 2 Vehicle (Pick-up) 1 800,000 800,000 3 Aluminium Can 150 3,500 525,000 4 Testing Equipments 1 65,000 65,000 5 Water Tank (2000 litre) 1 14,000 14,000 6 Other Equipments (Lump sum) 1 50,000 50,000 Total 2,254,000
7.3.4. Furniture and Fixtures
Sr. No. Particular No. Required Rate Total Value
Miscellaneous fixed assets 1 (furniture, fixtures, firefighting 1 50,000 50,000 equipment, first-aid equipment)
Sub Total 50,000 Total 50,000
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7.3.5. Preliminary and Pre-Operative Expenses
Sr. No. Particular Amount 1 Legal Charges 100,000 2 IDC (interest during construction) 130,823 3 Loan Processing Fee 100,000 Total 330,823
7.3.6. Working Capital
Total Value Sr. No. Item Year-I Year-II Year-III Year-IV Year-V Stock Raw Material 1 62,500 72,188 82,688 94,057 106,357 (Milk) @ 2 days Trade receivables @ 15 2 1,293,750 1,494,281 1,711,631 1,946,981 2,201,586 days Stock finished goods @ 3 517,500 597,713 684,653 778,792 880,634 6 days Creditors - raw material 4 375,000 433,125 496,125 564,342 638,141 @ 12 days Working Capital Requirement 2,248,750 2,597,306 2,975,096 3,384,172 3,826,718 Margin @ 20% 449,750 519,461 595,019 676,834 765,344 WC loan 1,799,000 2,077,845 2,380,077 2,707,338 3,061,374
7.3.7. Total Project Cost
Sr. No. Particular Total Value
1 Land and Building 550,000 2 Machinery and Equipment 2,254 ,000 3 Furniture and Fixture 50,000 5 P&P Expenses 330,823 6 Working Capital 449,750 Total 3,634,573
7.3.8. Means of Finance
Sr. No. Particular Amount 1 Own Contribution 1,551,373 2 Bank Finance - Long Term Loan 1,189,300 3 Grant/ Subsidy 893,900 Total 3,634,573
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7.3.9. Operational Expenses
Sr Number of Particulars Unit Cost I II III IV V . Unit A. Fixed ` Administration Expense 30,000 30,000 31,500 33,075 34,729 36,465 Repair and Maintenance (0.5% @ P&M and Civil) 0.5% 12,770 13,409 14,079 14,783 15,522 Insurance (0.5% @ P&M) 0.5% 11,270 11,834 12,425 13,046 13,699 Electricity Charges - Fixed (100 KVA @ INR 165 per KVA per month) 100 165.00 198,000 207,900 218,295 229,210 240,670 Indirect Employees (1 Employees @ INR 12,000 per month) 1 12000 144,000 151,200 158,760 166,698 175,033 Sub-Total 396,040 415,842 436,634 458,466 481,389 B Variable Cost Raw Milk (INR 25 per litre) 25 11,406,250 13,174,219 15,090,469 17,165,408 19,410,115 Raw Milk (INR 35 per litre) 35 15,968,750 18,443,906 21,126,656 24,031,571 27,174,162
Direct Employees/ Labour (2 Employees @ INR 10,000 per month) 2 10000 240,000 252,000 264,600 277,830 291,722
Electricity Charges - Variable (50 Units @ INR 7 per hour @ 10 hours per 50 7.00 638,750 737,756 845,066 961,263 1,086,966 day) Water Charges (2,00,000 Litre water @ INR 0.05 per litre per day) 500 0.05 4,563 5,270 6,036 6,866 7,764 Transportation - Raw Milk (INR 1.25 per litre of raw milk procured) 1.25 1,140,625 1,317,422 1,509,047 1,716,541 1,941,012
Sub-Total 29,398,938 33,930,573 38,841,874 44,159,480 49,911,741 Total 29,794,978 34,346,415 39,278,508 44,617,945 50,393,130
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7.3.10. Depreciation and Amortization
As per company’s act
Particulars Y1 Y2 Y3 Y4 Y5 Assets Land Asset Value 250,000 250,000 250,000 250,000 250,000 Net Fixed Assets 250,000 250,000 250,000 250,000 250,000 Building Asset Value 300,000 285,000 270,000 255,000 240,000 Depreciation 15,000 15,000 15,000 15,000 15,000 Accumulated Depreciation 15,000 30,000 45,000 60,000 75,000 Net Fixed Assets 285,000 270,000 255,000 240,000 225,000 Plant and Machinery Asset Value 2,254,000 2,028,600 1,803,200 1,577,800 1,352,400 Depreciation 225,400 225,400 225,400 225,400 225,400 Accumulated Depreciation 225,400 450,800 676,200 901,600 1,127,000 Net Fixed Assets 2,028,600 1,803,200 1,577,800 1,352,400 1,127,000 Furniture and Electrification Asset Value 50,000 45,000 40,000 35,000 30,000 Depreciation 5,000 5,000 5,000 5,000 5,000 Accumulated Depreciation 5,000 10,000 15,000 20,000 25,000 Net Fixed Assets 45,000 40,000 35,000 30,000 25,000 Gross Fixed Asset 2,854,000 2,608,600 2,363,200 2,117,800 1,872,400 Total Depreciation 245,400 245,400 245,400 245,400 245,400 Accumalated Depreciation 245,400 490,800 736,200 981,600 1,227,000 Net Fixed Assets 2,608,600 2,363,200 2,117,800 1,872,400 1,627,000
As per IT act
Particulars Y1 Y2 Y3 Y4 Y5 Assets Land Asset Value 250,000 250,000 250,000 250,000 250,000 Net Fixed Assets 250,000 250,000 250,000 250,000 250,000 Building Asset Value 300,000 270,000 243,000 218,700 196,830 Depreciation 30,000 27,000 24,300 21,870 19,683 Accumulated Depreciation 30,000 57,000 81,300 103,170 122,853 Net Fixed Assets 270,000 243,000 218,700 196,830 177,147 Plant and Machinery Asset Value 2,254,000 1,915,900 1,628,515 1,384,238 1,176,602 Depreciation 338,100 287,385 244,277 207,636 176,490 Accumulated Depreciation 338,100 625,485 869,762 1,077,398 1,253,888 Net Fixed Assets 1,915,900 1,628,515 1,384,238 1,176,602 1,000,112 Furniture and Electrification Asset Value 50,000 45,000 40,500 36,450 32,805 Depreciation 5,000 4,500 4,050 3,645 3,281 Accumulated Depreciation 5,000 9,500 13,550 17,195 20,476
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Net Fixed Assets 45,000 40,500 36,450 32,805 29,525 Gross Fixed Asset 2,854,000 2,480,900 2,162,015 1,889,388 1,656,237 Total Depreciation 373,100 318,885 272,627 233,151 199,454 Accumalated Depreciation 373,100 691,985 964,612 1,197,763 1,397,217 Net Fixed Assets 2,480,900 2,162,015 1,889,388 1,656,237 1,456,783
7.3.11. Revenue Schedule
Particular Rate Y1 Y2 Y3 Y4 Y5 Loose Milk - CM 28 12,775,000 14,755,125 16,901,325 19,225,257 21,739,329 Loose Milk - BM 41 18,706,250 21,605,719 24,748,369 28,151,269 31,832,589 Total 31,481,250 36,360,844 41,649,694 47,376,527 53,571,919
7.3.12. Term Loan Outstanding Disbursemen Repayment Year at end of the Interest Net benefit t year Principal Interest 1 2 3 4 5 6 7 Rs. Rs. Rs. Rs. 1st Rs. 1,189,300 Rs. 190,966 1,189,300 130,823 1,374,708 130,823 Rs. Rs. Rs. 2nd Rs. 998,334 Rs. 211,973 109,817 1,702,864 109,817 Rs. 3rd Rs. 786,361 Rs. 86,500 Rs. 235,290 Rs. 86,500 2,059,621 Rs. 4th Rs. 551,072 Rs. 60,618 Rs. 261,171 Rs. 60,618 2,447,017 Rs. 5th Rs. 289,900 Rs. 31,889 Rs. 289,900 Rs. 31,889 2,867,224 Rs. Rs. Total Rs. 1,189,300 1,189,300 419,646
7.3.13. Cash Flow Statement
Sr.No Particulars Year ( 1 ) Year ( 2 ) Year ( 3 ) Year ( 4 ) Year ( 5 ) 1 Revenue Total Revenue 31,481,250 36,360,844 41,649,694 47,376,527 53,571,919 2 Equity/ Share capital 1,551,373 3 Grant 893,900 4 Long Term Loan 1,189,300 5 Short Term Loan 1,799,000 2,077,845 2,380,077 2,707,338 3,061,374 4 Amortization 66,165 66,165 66,165 66,165 66,165 5 Depreciation 245,400 245,400 245,400 245,400 245,400 Sub Total (A) 37,226,388 38,750,253 44,341,335 50,395,429 56,944,857 Cash Outflow (Rs.) 1 Capital Expenditure a Furniture and Fixtures 50,000 b Land and Building 550,000 c Plant and Machinery 2,254,000 d Preliminary Expenses 330,823 Operational 2 Expenditure a Fixed Cost 707,605 727,407 748,199 770,030 792,954
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Sr.No Particulars Year ( 1 ) Year ( 2 ) Year ( 3 ) Year ( 4 ) Year ( 5 ) b Variable Cost 29,398,938 33,930,573 38,841,874 44,159,480 49,911,741 3 Loan LTL - Principal 190,966 211,973 235,290 261,171 289,900 LTL - Interest 130,823 109,817 86,500 60,618 31,889 STL – Principal 1,799,000 2,077,845 2,380,077 2,707,338 3,061,374 STL – Interest 251,860.00 290,898.30 333,210.78 379,027.26 428,592.37 4 Dividend 5 Tax 297,607 390,645 491,973 602,211 722,023 Sub Total (B) 35,961,622 37,739,157 43,117,123 48,939,876 55,238,473 Net Cash Flow (A-B) 1,264,766 1,011,097 1,224,212 1,455,553 1,706,384 Opening Cash and 1,264,766 2,275,862 3,500,075 4,955,628 Bank Cumulative Cash 1,264,766 2,275,862 3,500,075 4,955,628 6,662,012 Balance
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7.3.14. Balance Sheet
Particulars Year ( 1 ) Year ( 2 ) Year ( 3 ) Year ( 4 ) Year ( 5 ) ASSETS Current Assets Cash and Bank Balance 1,264,766 2,275,862 3,500,075 4,955,628 6,662,012 Accounts Receivables 0 0 0 0 0 Other Current Assets Total Current Assets 1,264,766 2,275,862 3,500,075 4,955,628 6,662,012 Gross Fixed Assets 2,854,000 2,608,600 2,363,200 2,117,800 1,872,400 Less: Depreciation 245,400 245,400 245,400 245,400 245,400 Net Fixed Assets 2,608,600 2,363,200 2,117,800 1,872,400 1,627,000 Preliminary Expenses 264,658 198,494 132,329 66,165 0 TOTAL ASSETS 4,138,024 4,837,556 5,750,204 6,894,192 8,289,012 LIABILITIES & SHAREHOLDERS EQUITY CURRENT LIABILITIES Long Term Debt 998,334 786,361 551,072 289,900 0 TOTAL LIABILITIES 998,334 786,361 551,072 289,900 0 Share capital 1,551,373 1,551,373 1,551,373 1,551,373 1,551,373 MoFPI Grant 893,900 893,900 893,900 893,900 893,900 Reserves and Surplus Add: Opening Balance (P/L Account) 0 694,417 1,605,922 2,753,859 4,159,019 Profit & Loss) During the Year 694,417 911,505 1,147,937 1,405,160 1,684,720 Total Reserves 694,417 1,605,922 2,753,859 4,159,019 5,843,739 TOTAL EQUITY 3,139,690 4,051,195 5,199,132 6,604,292 8,289,012 TOTAL LIABILITIES & EQUITY 4,138,024 4,837,556 5,750,204 6,894,192 8,289,012
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7.3.15. P & L Statement
Particulars Y1 Y2 Y3 Y4 Y5 Total Revenue 31,481,250 36,360,844 41,649,694 47,376,527 53,571,919 Total Revenue 31,481,250 36,360,844 41,649,694 47,376,527 53,571,919 Fixed Cost 396,040 415,842 436,634 458,466 481,389 Variable Cost 29,398,938 33,930,573 38,841,874 44,159,480 49,911,741 Total Operational Expenses 29,794,978 34,346,415 39,278,508 44,617,945 50,393,130
Earnings Before Interest, Depreciation, Taxes and Amortization (EBITDA) 1,686,273 2,014,429 2,371,185 2,758,581 3,178,789
Depreciation 245,400 245,400 245,400 245,400 245,400 Amortization 66,165 66,165 66,165 66,165 66,165 Earnings Before Interest and Taxes (EBIT) 1,374,708 1,702,864 2,059,621 2,447,017 2,867,224 Interest Expense 382,683 400,715 419,711 439,645 460,481 Earnings Before Taxes (EBT) 992,025 1,302,149 1,639,910 2,007,372 2,406,743 Tax 297,607.47 390,645 491,973 602,211 722,023 Earnings After Taxes (EAT) 694,417 911,505 1,147,937 1,405,160 1,684,720 Profit (loss) carried to Balance Sheet 694,417 911,505 1,147,937 1,405,160 1,684,720
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7.3.16. Financial Indicator
Internal Rate of Return (IRR):
The project internal rate of return should be more than 10% as per the current financial scenario of the country. The project IRR is 25.68% therefore it is clearly indicating that the project is feasible for investment. Break Even Point:
The average break-even percentage is 27.23 % and as per financial standards it should be below 60%. Payback Period: The Payback period for the project is 2 Years and 11 Months. It should be less than 4 to 5 years therefore the project payback periods are within the limit. Net Present Value With a discount rate of 10% and a span of 5 years, the projected cash inflows are worth Rs. 5,433,957 today, which is greater than the initial cash outflow of Rs. 3,634,573. The resulting positive NPV of the above project is Rs. 1,799,384 which indicates that pursuing the above project may be optimal. Return on Capital Employed The return on capital employed for the project is 32.2 % which is above the expected financial standards.
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Chapter 8: Method of technology dissemination and adoption
Method of dissemination of suggested technology and models
RACP-ABPF shall undertake mix of some or several initiatives to disseminate the suggested technologies and models that will broadly include: Workshops for prospective entrepreneurs/groups, existing industry owners and BoDs of FPCs Facilitate technology benchmarking exposure visits within the state and outside state for prospective entrepreneurs/groups, existing industry owners and BoDs of FPCs Seminars and Workshops in association with Industry Associations, Technical Institutes and R&D Institutions Technology Meets and Tie-ups with Technology Suppliers, Technical Institutes and subject experts Facilitate through consultancy and business development services Dissemination of success stories of units facilitated by ABPF through appropriate media Dissemination through web portals and mobile applications
Scale of adoption in the clusters and state, through ABPF support
The models and business plans suggested in this report are broadly generic in nature, however involve: technology profile civil works requirement raw material sourcing and logistic costs for sourcing raw material capacity utilization for different scenarios realistic assessment of investment and working capital needs possible sources of funding financial analysis
The suggested models and business plans are for optimal capacities which can be fine-tuned to the scale, investment, technology needs of the entrepreneur. ABPF will further guide entrepreneurs on statutory clearances needed for operating the business, required licenses, ways of leveraging various government schemes/subsidies and several other aspects for effective technology adoption. In order to increase the scale and potential adoption, ABPF shall pursue some or mix of several initiatives, which may broadly include: Investor road shows: ABPF will organize road shows which will comprise of meets aimed at disseminating information regarding opportunities to invest in the state, targeting potential investors both within & outside the state. B2B Meets: ABPF will hold Business to Business Meetings to forging partnerships amongst entrepreneurs with complimentary offerings. Establishing Mentor Network: ABPF will also prepare a list of well-established entrepreneurs/ subject matter experts who could mentor the emerging entrepreneurs- advising them on technical and commercial aspects of running a business. Mentor-Mentee Workshops: ABPF will hold a series of workshop wherein the potential entrepreneurs and their mentors would interact and exchange ideas on establishing, developing and running new businesses. Based on the interest and seriousness of the entrepreneur, ABPF will also facilitate one on one discussion with the mentors. ABPF will also invite commercial banks to these workshops and investor meets, so as to establish a rapport between the entrepreneur and the banks. By building a good working relationship with the banks over a period of time, ABPF will be able to recommend viable business projects for accessing commercial credit from these banks.
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Facilitating Access to Finance: ABPF will guide and facilitate entrepreneurs to explore possible sources of funding including ways of leveraging various government schemes/subsidies. ABPF will facilitate one on one dedicated meetings between entrepreneurs and commercial banks in order to facilitate access to finance (both investment as well as working capital). Creating a robust Knowledge Base: ABPF will prepare an operational knowledge base that could be used by an entrepreneur throughout the life cycle of the enterprise. The knowledge base would comprise of fundamentals of business management including objectives, operations management, organizational behavior, human resources management, structure of the organization, products and markets, operations finance including major expenditures, sources of financing across the stages of the life cycle of the enterprise (from start up to mature business and expansion). Knowledge base would also cover fundamentals of accounting, sales, marketing, promotion, branding, distribution, logistics, human resource management etc. ABPF will also establish a business performance tracking system of the enterprises supported by ABPF.
Review of Business Plans for funding through RACP: ABPF will review the business plans and provide its recommendations on applications.
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Appendix 1: Dairy Technology Suppliers
# List of Suppliers Technologies 1 DSK Milkotronics AMCU Systems (6 variants), BMC Data loggers, Dairy software’s (4 Private Limited variants), Milking Machines (3 variants), Green fodder system, Cow Mats & other cattle feed Nutrition products.
2 Kirloskar Pneumatic Refrigeration Compressors & packages (Reciprocating and Co. Ltd. Screw), Refrigeration & Gas Compression Systems for Oil and Gas /Chemicals & Fertilizers, Vapour Absorption Chillers, Marine HVACR, Air Compressors and packages, Gears and Gear Boxes.
3 Pietribiasi Complete lines for the preparation and Michelangelo S.r.l. pasteurization of ice cream mix and beverages; cheese making equipment; powder milk recombination; milk reception and cooling units; butter production machines; ripening tanks and batch pasteurizers. Thermal treatment plants include HTST pasteurizers, ESL and UHT.
4 Illies Engineering Serve industries like Food & Beverages Processing, Flexible Packaging, (India) Pvt. Ltd. Machine Tools etc.
5 Parksons Packaging Packaging for milk and for many other dairy products. Ltd. 6 DSM Food Food & Dairy ingredients. Specialities 7 GEA Process Engg. Process engineering solutions and services, including design, (I) Pvt. Ltd. engineering, procurement, erection and commissioning, for the dairy, food, chemical, pharmaceutical, petrochemical, beverages and brewery industries.
8 Danfoss Industries Supplier of technologies that meet the growing need for food supply, Pvt. Ltd. modern infrastructure, efficient energy utilization and climate friendly solutions.
9 KHS GmbH Innovative filling and packaging systems serving many different customers in the beverage, food, and non food industries worldwide.
10 Goma Engineering Commissioning of Dairy & Food Processing projects, such as building Pvt. Ltd. layout, machinery layout, erection of the plant and machinery, formulation of the products, packaging development, setting up laboratory, training to manpower, etc.
11 IDMC Limited Supply, Installation, Testing & Commissioning (SITC) of not just dairy projects but projects in other sectors such as Pharmaceuticals, Beverages, Breweries and Thermal Management Systems – including dairy refrigeration and Heating, Ventilation & Air conditioning (HVAC).
12 Schaefer System International Pvt. Ltd.
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# List of Suppliers Technologies 13 SSP Pvt. Limited Manufacturer, exporter, technology developer & turnkey projects & equipment supplier for Dairy Processing industry, Food & Fruit Processing Industry, Chemical Processing Industry , Herbal Extraction Plants, Gelatine Processing Plants & also manufacturer of Zero Liquid Discharge Effluent Treatment Plant for various Industries.
14 Electronics Devices Manufacturers of Induction Cap Sealing machines. Worldwide Pvt. Ltd. 15 Micron Industries Pvt. Manufacture and marketing of a complete range of equipment’s Ltd. exclusively for the Dairy & Food Industry like Homogenizers , High Pressure Pumps, Yoghurt Cup filling and Sealing Machine, Ice Cream Cup and Cone filling and Closing machines, Butter Forming & Wrapping Machines, Micro Blenders, etc…
16 A.T.E. Envirotech Comprehensive solutions for wastewater treatment and recycling , Private Limited including zero liquid discharge (ZLD).
17 Dairy & Pharma Manufacturer of Sanitary Stainless Steel Pipe Fittings and valves CNC Fitting Co. machines components.
18 Anderson-Negele Hygienic Sensors that conform to all International standards like EHEDG, FDA, 3A etc.
19 ANDRITZ Separation Supplier of plants and equipment for mechanical and thermal separation for various applications and industries.
20 Burkert Contromatic Manufacturer of control and measuring systems for fluids and gases. Pvt. Ltd. 21 Armec Cooling Manufacture Ammonia Chilling Plant, Freon Chilling Plant, Bulk Milk System Ltd. coolers, Advance IBT (New Product), Air Chiller.
22 IC Ice Make Manufacturer & Exporter of Commercial & Industrial Refrigeration Refrigeration Pvt. Ltd. Equipment catering to Industries like Dairy Product, Ice Cream, Food Processing, Fruit Ripening, Horticulture/Floriculture, Hotel Restaurant, Retails Outlet for Dairy – Ice Cream, Pharmaceuticals, Logistics, Plastic and Chemical Processing Industry Biological / Research etc.
23 Guangdong Yuedong Manufacture for foodstuff, drink, dairy, packing, plastic machine. Mechanical Industry Co., Ltd. 24 Samarpan Manufacturer of packaging machines to pack liquid and different types of Fabricators Pvt. Ltd. liquid /solid /granular/powder products.
25 Fillpack Technology Filling Packaging Solutions. 26 Frascold India Pvt. Air conditioning and refrigeration compressor ’s. Ltd. 27 Zhejiang Goldstone Research of flexibles and containers. Packaging Co., Ltd. 28 Bry-Air (Asia) Pvt. Provider for humidity control, Desiccant Dehumidification, product Ltd. drying, Gas Phase Filtration, and complete environmental control.
29 Farmgate Agro Pvt. Manufacturing Dairy Products such as SKIMMED MILK POWDER, FULL Ltd. CREAM MILK POWDER, DAIRY WHITENER, BUTTER, BUTTER OIL & GHEE conforming to ISI / Agmark and International standards.
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# List of Suppliers Technologies 30 BAG Budissa Production and distribution of ensilage machines and accessories. Agroservice GmbH 31 ifm electronic India Cover all relevant standard solutions and also the special requirements Private Limited of individual industries. In addition to position and process sensors, sensors for motion control and safety technology are part of the product range. 32 flaco Manufacture and sale of parlours, trolleys and accessories for cows, sheep and goats.
33 Inoxpa India Pvt. Ltd. Pumps, Mixers, Blenders, Agitators, Valves, Fittings & Skids for Food, Dairy & Beverages Industry.
34 Dhruman Compressor Spares and Parts and Reconditioned Compressors, Used Engineering Compressors and New Compressors. Company 35 Repute Engineers Innovative process technologies & engineered processing plants and Pvt. Ltd. machineries for the Food, Dairy & Beverage Processing industries.
36 Machinfabrik decontamination sterilization. Industries Pvt. Ltd. 37 Multivac Laraon India Roll stock machines, Chamber Machines, Tray Sealers, Labelling & Pvt. Ltd. Printing ancillary equipment’s for various Food Industrial–Medical Industries. 38 Prasanna Packaging Cup filling and sealing machines for dairy products like Shrikhand, Lassi, Machinery Pvt. Ltd. Basundi, Curd etc.
39 Sealers India Solutions to different projects such as Dairy, Ready to Eat, Juice/Water, Agencies Jams/ Honey/ Ketchup/ Sauces in an array of different formats like cups, trays, blister, FFS, bottles (plastic or glass), and jars (plastic or glass).
40 Shiv Traders Eko Milk Ultra Pro, EKO Milk Display, DPU, Stirrer, SMS Devices, Instrument’s Pvt. Ltd. Remote Display, Computer Software, Chemical, Weight Machine
41 Shanghai Nanhua Manufacturing series of plate, tubular, air heat exchanger and various Transducer high temperature pasteurizer and ultrahigh temperature UHT. Manufacture Co., Ltd. 42 FX Multitech Pvt. Ltd. Air conditioning & Refrigeration Machinery & components. 43 Hangzhou Zhongya Various packaging and bottle blowing machines. Machinery Co., Ltd. 44 Rahul Ferromet & Hygienic & Ultra High Purity Electro Polished & Mechanical Polished Engg. Pvt. Ltd. Stainless Steel Tubes.
45 Anton Paar India Pvt. High quality measuring and analysis instruments for industrial and Ltd. research applications.
46 Videojet Industrial ink jet systems, Laser Marking printer, and Thermal transfer Technologies (India) over printer, Thermal Inkjet printers, fluids and accessories for the Pvt. Ltd. product identification industry.
47 PBS Electronics/PBS Water treatment plants, SS pipes, Fittings & Valves. Water Tech (P) Ltd. 48 Zeutech Engineers Liquid ring pump, Rotary lobe pump, Centrifugal pump, Power blender, Pvt. Ltd. Pasteuriser
49 Ningbo Leepak Whole solution of liquid dairy processing, filling and packaging. Machinery Co., Ltd.
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# List of Suppliers Technologies 50 Shandong Bihai Aseptic brick shape paper carton packer and paper/aluminium/PE liquid Machinery Co., Ltd. food aseptic packing paper.
51 Kanha Milk Testing Electric equipment, Batteries of extremely high quality and international Equipments Pvt. Ltd. standards.
52 Duke Thomson's Rapid food analysis kits. India Pvt. Ltd. 53 JB Automation Packaging machines for food, dairy, cosmetics and pharma, industrial automations and robotics.
54 Krishna Allied Dairy Equipment’s like Solar Powered Milk Cooler, Milk Security System, Industries Pvt. Ltd. Digital Level Sensors for Milk Tanks, Milk Cooling Tanks, Shipbuilding Sections for Indian Navy, Milking Parlours & Milk Can.
55 S. A. Pharmachem Food, Nutraceutical and Pharma ingredients. Pvt. Ltd. 56 Permionics RO, UF and NF membranes and provide membranes complete system Membranes Pvt. Ltd. for various applications in R&D, Production process and Effluent treatments. 57 Lechler (I) Pvt. Ltd. Precision Spray Nozzles and Systems. 58 Shanghai Precise High quality equipment’s, packing materials and integral solutions for Packaging Co., Ltd. global customers with steady steps.
59 Metro Polythene Films for various flexible packaging applications. Manufactures 60 Veripack Solutions Modified atmosphere packaging (MAP) and vacuum packaging pack India Pvt. Ltd. formats.
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