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IntroductionMilkis a valuable nutritious food that has a short shelf-life andrequires careful handling. Milk is highly perishable because it is anexcellent medium for the growth of microorganisms – particularlybacterial pathogens – that can cause spoilage and diseases inconsumers. Milk processing allows the preservation of milk for days,weeks or months and helps to reduce food-borne illness.www.entrepreneurindia.co

The usable life of milk can be extended for several days throughtechniques such as cooling (which is the factor most likely to influencethe quality of raw milk) or fermentation. Pasteurization is a heattreatment process that extends the usable life of milk and reduces thenumbers of possible pathogenic microorganisms to levels at which theydo not represent a significant health hazard. Milk can be atedandeasilytransportable dairy products with long shelf-lives, such as butter,cheese and ghee.www.entrepreneurindia.co

The milk processing section in processing plants contains all operationsof milk like collecting milk from farmers, storing milk in tanks thenseparating, pasteurizing and homogenizing for making good qualitymilk products.The processing market in India is expected to grow at a CAGR of astraditionally been integral to India’s rural economy, and there arevarious factors contributing towards its growth. Recently, a number ofestablished FMCG players ventured into the dairy segments throughnew product launches. Milk Processing Industry in India 2017, severalestablished milk processing companies are looking to further expandtheir business and are looking to raise funds through IPOs.www.entrepreneurindia.co

This will further aid in the development of the country's milkprocessing industry. Increasing urbanization in the country is bringingmore consumers in touch with various processed milk products. This,along with the rising income of Indians, has ensured that the marketcontinues to experience strong growth.Increasing urbanization, rising incomes, and the proliferation of foodand grocery retail outlets across tier 2 and tier 3 cities has led to anincreasing accessibility and demand for processed milk products inIndia. However, the Indian milk processing industry is yet to achieve itsfull potential due to challenges such as gaps in the supply chain,insufficient cold storage and distribution facilities, and lack of qualityfeed.www.entrepreneurindia.co

Despite the challenges, growth in the Indian milk processing industrylooks promising. The industry is seeing a number of established FMCGplayers foray into the dairy segment with new product launches.India is the largest producer of milk and dairy products in the world.The country has experienced tremendous improvement in per capitaavailability of milk over the last five years. Organized dairy productsmarket in the country is witnessing growth, on account of risingdemand for functional dairy products, due to their low fat andcholesterol content.www.entrepreneurindia.co

India is witnessing entry of large number of international players,offering a variety of non-conventional dairy products such as yogurtsand probiotic drinks. However, unorganized sector, which comprisessmall farmers, accounts for a majority share in the country’s dairyproducts market. Domestic players are also increasing their focus onoffering products for health conscious consumers and introducingpackaging innovations to strengthen their market position.www.entrepreneurindia.co

Ghee,which is widely used in Indian cooking, is the pure butter fatleft over after the milk solids and water are removed from butter. It isvery fragrant with a rich nutty taste and represents the second largestconsumed dairy product in India, after liquid milk. The healthy growthof the market can be attributed to numerous forces. Population growth,rising disposable incomes, easy availability, and growing awarenessabout the benefits of ghee are some of the factors that are broadeningthe growth aspects of the market.www.entrepreneurindia.co

Ghee is nutritionally rich class of clarified butter used as a cookingmedium. It is known for its taste & pure health in the Indiansubcontinent. It is commonly used in South Asian and Middle Easterncuisines, traditional medicines, and religious rituals. It is prepared bygently heating butter, and retaining the clear liquid fat whilediscarding the solid residue that settled to the bottom.The taste, texture, and color of the ghee depend on the quality ofbutter, source of milk, and duration of boiling. In Ayurveda, ghee isconsidered as a vital medicine for healing wounds, improving digestion,reducing free radicals, and boosting immune system. It can be kept atroom temperature for several weeks without refrigeration.www.entrepreneurindia.co

The consumption of ghee has increased, as it is rich in fat solublevitamins A, D, & E, helps in building strong bones, improves digestion,and reduces inflammation. The plethora of health benefits and highpenetration in the emerging market are the key drivers of the marketgrowth. Further, high disposable income and population boom players.However, overconsumption of ghee could lead to cardiovasculardiseases, which in turn is key factor affecting the market growthduring the forecast period.www.entrepreneurindia.co

Butteris a dairy product made by churning cream or milk. It can beused like a spread and as a regular ingredient in cooking. From anutritional perspective, butter is a very good source of protein. Itcontains saturated fat made from the fresh cream and milk.The global butter market is expected to grow at a CAGR of 3.8% duringthe forecast period, 2018-2023. Butter is one of the vital ingredients ofconfectionary products. However, with the dropping prices of butter,the competition between substitute products has intensified. Thedemand for spreadable butter has been growing gradually in developingcountries, as it is used in various food products.www.entrepreneurindia.co

phosphorus, zinc, vitamin A and vitamin B12. Calcium is one of thenutrients most likely to be lacking in the American diet. To reducecalories, you can grate or sprinkle harder Paneer over your dishes oruse small amounts of aromatic and sharp Paneer for their deliciousPaneer flavor. The major health benefits of Paneer include relief fromhypertension and osteoporosis. It also helps in maintaining bonehealth, gaining weight and dental care. Paneer is also rich in vitamin-B,which is very good for children, women (particularly when pregnant orlactating) and elderly people, for the formation and strengthening ofbones and cartilage. Paneer contains conjugated linoleic acid andsphingo lipids which help prevent cancer.www.entrepreneurindia.co

The organised Paneer market, including its variants like processedPaneer, Paneer spreads, mozzarella, flavoured and spiced Paneer isvalued at around Rs. 6 bn. The value of processed Paneer market at55% of the overall market is estimated Rs. 3.5 bn. The next mostpopular variant is Paneer spread claiming a share of around 30% of thetotal processed Paneer market. Paneer is becoming a popular item inthe menu of all relatively affluent families.The global dairy product market is expected to witness significantgrowth over the forecast period.www.entrepreneurindia.co

Growing world population base, rise in per capita income, and increasein consumer awareness level regarding nutritional values of dairyproducts and, change in consumer dietary patterns are the key driversregulating the market growth. In addition, technological advancementsand innovations for obtaining more milk from dairy animals are alsoestimated to boost market growth.Demand for milk and milk products is increasing daily with increase inworld population. High-end technology is required to meet these needsby increasing the milk processing capacity and maintaining the qualityof the product. The dairy industry is highly localized owing toperishable nature of milk products.www.entrepreneurindia.co

Dairy products are exported to the regions where climatic conditions,unmet demand supply ratio, unfavorable government measures oftechnologically advanced transportation measures for maintaining theefficiency and quality of milk products during long distance export arealso anticipated to boost the market growth.The dairy food market in the India has witnessed a growth in recentyears on account of rising demand for dairy food products fueled byexpansion in milk production. The surge in growth is majorlyoriginated from growth in Ice cream and Milk Powder as a segment ofdairy food market.www.entrepreneurindia.co

The growth in this segment has been largely led by the domesticfactors such as innovative technology and rise in availability ofvariants.Global demand for milk and dairy products is becoming increasinglyinsatiable. In recent years, the wedge between demand and supply hascontinued to grow. Increasing real incomes coupled with risingwillingness to spend, changing consumer dietary patterns, increasingconsumer awareness regarding the nutritional values of dairy productsand waning price responsiveness are the major factors influencing themarket growth.www.entrepreneurindia.co

Machinery PhotographsMilk Reception SectionMilk Processing & Storage Sectionwww.entrepreneurindia.co

Horizontal Milk Storagewww.entrepreneurindia.coCream Storage Tank

Project at a Glance( in lacs)PROJECT AT A GLANCECOST OF PROJECTParticularsLand & Site DevelopmentExp.BuildingsPlant & MachineriesMotor VehiclesOffice AutomationEquipmentsTechnical Knowhow Fees& Exp.Franchise & OtherDepositsPreliminary& Pre-operativeExpProvision forContingenciesMargin Money - WorkingCapitalTOTALExisting 03519.57www.entrepreneurindia.coTotalMEANS OF FINANCEProposeParticularsExistingd40.00 Capital114.00 Share PremiumOther Type Share204.04 Capital18.00 Reserves & 000.000.000.0060.50 Cash Subsidy0.000.000.0015.00 Internal Cash AccrualsLong/Medium Term0.00 Borrowings0.000.000.000.00389.68389.682.00 Debentures / BondsUnsecured20.00 9.5746.03519.57 TOTAL

Project at a GlanceYea Annualised Boo Debt DividrkendValuePerEPS CEPS Per Share Share 113.32 3.30 7.530 24.00 0.00218.43 5.12 8.802 18.00 0.00325.34 6.88 10.09 0 12.00 0.0032.74-5 7.46 10.26 6 6.00 0.0040.85-6 8.06 10.50 2 0.00 0.00www.entrepreneurindia.coRetained Payo Proba P/EEarningsutble RatioMarket PriceNo.ofTimePer Shares% % YieldPrice/BookValue%100.00 3.30 0.003.301.000.00100.00 5.12 0.005.121.000.00100.00 6.88 0.006.881.000.00100.00 7.46 0.007.461.000.00100.00 8.06 0.008.061.000.00

Project at a GlanceYearD. S. C. R.Debt / - Equity Total ReturDeposi asNetn onts Debt Equity Worth NetWorthIndividu Cumulati Overalalvel(Number of times)Initial3.001-2 1.162-33-4(Number ofitability RatioGPMPBTPAT%%%Assets CurreTurnov nterRatioRatioNetP/VContri Ratiobution%3.001.810.980.470.180.002.8936.159.36% 3.78% 2.99% 518.00 %2.180.951.8510.70%34.706.02% 4.13% 559.26 %2.411.081.1811.57%34.687.64% 4.99% 621.07 %2.541.250.7311.86%34.518.46% 5.41% 618.13 %2.461.430.4412.12%34.519.23% 5.84% 618.13 %2.372.16

Project at a GlanceBEPBEP - Maximum Utilisation YearCash BEP (% of Installed Capacity)Total BEP (% of Installed Capacity)IRR, PAYBACK and FACRInternal Rate of Return . ( In %age )Payback Period of the Project is ( In Years )Fixed Assets Coverage Ratio ( No. of times )www.entrepreneurindia.co568.10%73.24%14.69%3 Years 1Months6.670

Major Queries/Questions Answered in the Report?1. What is Milk Processing (Milk, Paneer, Butter andGhee) industry ?2. How has the Milk Processing (Milk, Paneer, Butterand Ghee) industry performed so far and how willit perform in the coming years ?3. What is the Project Feasibility of Milk Processing(Milk, Paneer, Butter and Ghee) Plant ?4. What are the requirements of Working Capital forsetting up Milk Processing (Milk, Paneer, Butterand Ghee) plant ?www.entrepreneurindia.co