MILK PRODUCTS

PROJECT REPORT
ON
MANUFACTURE OF ICE CREAM & MILK
PRODUCTS

Office & Works

 1 . PROJECT AT A GLANCE

1 Name of the Unit : M/s. MILK PRODUCTS

2 Location of the Unit :

3 Constitution : Proprietary

4 Sector : Small Scale

5 Line of Activity : Manufacture of Ice Creams and Other

Milk Products

6 Name of Proprietor :

07. Project Cost. :

(Rs.in lacs)
PROJECT COST AMOUNT MEANS OF FINANCE AMOUNT

Land Capital
Leased

Civil Works Leased Term Loan

Plant & Machinery

Working capital Margin

TOTAL TOTAL

08. Promoter Contribution. : 29.47 %

09. Debt Equity Ratio. : 2.39

10. Power. : 45 HP

11. Employment. : 35
 1. INTRODUCTION

Milk products are a type of food produced from or containing

the  milk of mammals, primarily cattle, water buffaloes, goats, sheep, and camels.
Dairy products include food items such as yogurt, cheese, and butter. A facility that
produces dairy products is known as a dairy, or dairy factory. Dairy products are
consumed worldwide, with the exception of much of East and Southeast Asia and also
some parts of central Africa.

Types of Milk Products

Milk after optional homogenization, pasteurization, in several grades after
standardization of the fat level, and possible addition of certain bacteria produces
various types of Products, a few items of milk products are listed here below:


 Whole milk products
 Skim milk
 Whey products
 High milk-fat and nutritional products (for infant formulas)
 Cultured and confectionery products
 Khoa,
 Butter
 Buttermilk,
 Ghee
 Cheese,
 Curds
 Paneer
 Lassi
 Ice cream
 Milk Chocolates

Milk Products Production/Consumption in India

 India is considered as the top country in terms of Processing of Milk and

production and consumption of Milk Products. Thanks to Verghese Kurien, known as
the Father of the White Revolution in India, was a social entrepreneur whose "billion-
litre idea",  the world's largest agricultural dairy development programme, made India
the world's largest milk producer, surpassing the United States of America by 1998,with
about 17 percent of global output in 2010–11, from a milk-deficient nation, which
doubled milk available per person within 30 years, and which made dairy farming
India's largest self-sustaining industry, with benefits of employment, incomes, credit,
nutrition, education, health, gender parity & empowerment, breaking down caste
barriers and grassroots democracy and leadership.

Project`s Manufacturing:

Hemamoses Milk Products is predominantly engaged in the manufacturing of Ice

Creams and other allied products of Milk. Ice cream (derived from earlier iced
cream or cream ice) is a sweetened frozen food typically eaten as a snack or dessert.
It is usually made from dairy products, such as milk and cream, and often combined
with fruits or other ingredients and flavors. It is typically sweetened
with sugar or sugar substitutes. Typically, flavourings and colourings are added in
addition to stabilizers. The mixture is stirred to incorporate air spaces and cooled below
the freezing point of water to prevent detectable ice crystals from forming. The result is
a smooth, semi-solid foam that is solid at very low temperatures (<35 °F / 2 °C). It
becomes more malleable as its temperature increases.

Ice cream may be served in dishes, for eating with a spoon, or in cones, which are
licked. Ice cream may be served with other desserts, such as apple pie. Ice cream is
used to prepare other desserts, including ice cream floats, sundaes, milkshakes, ice
cream cakes and even baked items, such as the Baked Alaska.
 CONSTITUTIONS AND SECTOR

Constitution: A unit by name and style, is a Propriety firm, the main object of the unit
is to process and manufacture of all variety of Ice Creams and allied milk products. The
promoter of the unit is.

Sector: The unit comes under Small Scale Industry and has obtained industry
registration from .

LICENCES AND APPROVALS:

The Company will obtain the following licenses and

approvals.

1. VAT Registration

2. Food Licence

BACKGROUNG OF THE PROMOTER

SCOPE OF THE PROJECT

The project envisages setting up a unit for manufacture of ice creams and other
allied milk products. The total cost of the project is estimated at. The installed Capacity
of the plant would reach upto 3500 ltres working in 3 shifts Operations. The capacity
utilization is assumed to be at 75%, 95% in the First, Second and Third year
respectively.

LOCATION AND ITS ADVANTAGES

The Project is located in where there is abundant availability of milk and its
supplies. being green and highly rich with green grass, there is huge availability of good
diet for animals, which in turn results in high quality milk. Water, which is very essential
in preparation of Ice creams, is available in abundant in this area.

PRODUCTION PROCESS

1. Blend the Ice Cream Mixture

The milk fat source, nonfat solids, stabilizers and emulsifiers are blended to ensure
complete mixing of liquid and dry ingredients .

2. Pasteurize Mix
Ice cream mix is pasteurized at 155°F (68.3°C) for 30 minutes or 175°F (79.4C) for 25
sec. The conditions used to pasteurize ice cream mix are greater than those used for
fluid milk because of increased viscosity from the higher fat, solids, and sweetener
content, and the addition of egg yolks in custard products.

3. Homogenize

Ice cream mix is homogenized (2500 to 3000 psi) to decrease the milk fat globule size
to form a better emulsion and contribute to a smoother, creamier ice cream.
Homogenization also ensures that the emulsifiers and stabilizers are well blended and
evenly distributed in the ice cream mix before it is frozen .

4. Age the Mix

Ice cream mix is aged at 40°F (5°C) for at least 4 hours or overnight. Aging the mix
cools it down before freezing, allows the milk fat to partially crystallize and the gives the
proteins stabilizers time to hydrate. This improves the whipping properties of the mix .

5. Add Liquid Flavors and Colors

Liquid flavors and colors may be added to the mix before freezing. Only ingredients that
are liquid can be added before the freezing, to make sure the mix flows properly
through the freezing equipment.

6. Freeze

The process involves freezing the mix and incorporating air. Ice cream mix can be
frozen in batch or continuous freezers and the conditions used will depend on the type
of freezer. Batch freezers consist of a rotating barrel that is usually filled one-third to
one-half full with ice cream mix. As the barrel turns, the air in the barrel is incorporated
into the ice cream mix. Ice cream freezers designed for home use are batch freezers.
Continuous freezers consist of a fixed barrel that has a blade inside that constantly
scrapes the surface of freezing barrel. The ice cream mix is pumped from a bulk tank to
the freezing barrel and the air is incorporated with another pump just before it enters the
freezing barrel. The continuous freezing process is much faster than the batch freezing
process.
The addition of air is called overrun and contributes to the lightness or denseness of ice
cream. Up to 50% of the volume of the finished ice cream (100% overrun) can be air
that is incorporated during freezing. The overrun level can be set as desired to adjust
the denseness of the finished product. Premium ice creams have less overrun
(approximately 80%) and are more dense than regular ice cream.

At the point of discharge from the freezer (draw temperature), only about 50% of the
water in ice cream is frozen. Soft serve ice cream is generated at this point in the
freezing process.

7. Add Fruits, Nuts and Bulky Flavorings (candy pieces, etc.)

Fruits, swirls, and any bulky type of flavorings (nuts, candy pieces, etc.) are added at
this point. These ingredients can not be added before freezing or they would interfere
with the smooth flow of the mix through the freezer. The ice cream at this point is soft
and it is easy to mix in the bulky flavorings so they are uniformly distributed throughout
the ice cream. Mixing in bulky flavorings after freezing also prevents damage to the
pieces and allows them to remain whole or in large chunks .

8. Package

As desired, depending on the product.

9. Harden

The ice cream is cooled as quickly as possible down to a holding temperature of less
than -13°F(-25°C). The temperatures and times of cooling will depend on the type of
storage freezer. Rapid cooling will promote quick freezing of water and create small ice
crystals. Storage at -13°F(-25°C) will help to stabilize the ice crystals and maintain
product quality. At this temperature there is still a small portion of liquid water. If all the
water present in the ice cream were frozen, the ice cream would be as hard as an ice
cube.

10. Sales and Distribution

After the ice cream is hardened, it is ready for Sales and Distribution .
 AVAILABILITY OF RAW MATERIAL

The main raw materials are:

Milk: Ice cream is predominantly composed of Milk and its products. Milk of all forms
can used for preparation of Ice Cream. As mentioned earlier, East Godavari district
being green and availability of highly green grass, the quality and quantity of milk is
adequate for production of Ice creams on a mass scale. Farmers in this area maintain
cattle for utilizing their crop grass and those farmers supply milk of such cattle to
various dairies at reasonable rates.

Other Materials: Other major raw material is Sugar which is easily available in the
entire state of Andhra Pradesh.

In addition materials used for production of Ice creams are flavouring substances,
stabilizers and different decorative items such as nuts, chocolate nuts, etc.
 MARKETING

Ice-cream is typically regarded as a seasonal product, with demand peaking during the
summer months. Winter witnesses a sharp decline in consumption and resultant dip in
sales and profits. However, with the marketplace teeming with a host of innovative
frozen variants, which consumers are enjoying even in the cold months, there is a surge
in winter sales.

India’s current ice-cream market is worth Rs 3,000 cr, including the unorganised sector.
The branded market has a host of homegrown and international players, namely, Amul,
Kwality Walls, Mother Dairy, Vadilal, Cream Bell, Baskin-Robbins, etc, amongst the the
prominent ones. Whilst Häagen-Dazs, Baskin-Robbins, London Dairy, New Zealand
Naturals, and Hokey Pokey cater to the high-end market, the likes of Amul,
Vadilal, Cream Bell and Mother Dairy are available at wide-ranging price points. Lately,
the imported concepts such as frozen yogurt and gelatos are gaining popularity. The
more recognisable Fro-Yo brands are Cocoberry, Red Mango, and Yogurberry, while
Amore, Gelato Vinto and Gelato Italiano are popular gelato brands, and primarily
belong to the super premium to premium segments.

However, per capita consumption of ice-cream in India is quite low. R S Sodhi,

Managing Director, GCMMF (Amul), informs, “We are still at the level of 400 ml of per
capita consumption of ice-cream per year compared to the global average of 2,300 ml.
Unlike the West, Indians enjoy a range of other sweet options such as the traditional
mithai, but the icecream is slowly increasing its share of the Indian palate.”

Increasing urbanisation, rising incomes, consumer awareness, improved cold supply

chain, growing deep freezer penetration, and growth of modern format retail facilities
are giving a fillip to the country’s frozen desserts business, which is highly capital
intensive.

Ice-cream is one of the fastest growing food categories in India. Notably, the business
is seasonal in nature with April to June being the peak season and November to
January the lean months. Sales slacken during the monsoons also.
In recent years, consumption of ice-cream and other frozen novelties in winters has
been on the rise. A mix of factors is responsible for lessening the seasonal impact and
contributing to the overall growth of the country’s ice-cream industry such as changing
consumer perception, capturing regional variations, diverse consumer segments,
favourable retail location, product range and innovation, festivities, and marketing and
promotions.

Currently growing at 12-15 percent annually, the future prospects of India’s ice-cream
market seem promising for manufacturers, suppliers and retailers.  A number of
regional players have also started expanding. The entry of new players will further
intensify the struggle to get a bigger market share.

All the production from the Proposed project would be distributed to 5 districts viz.
 LOCATION AND ITS ADVANTAGES

Land: The Proposed location of the Unit is. The location of the unit has considerable
influence on the techno-economical facility of the project. There are various factors
contributing to the functioning of a plant and following are the primary factors taken into
consideration.

Reasons for the Selection of the site:

1. Adequate of Raw Materials.

2. Adequate of labour at economically rate.
3. Adequate supply of water throughout the year.
4. The site is well connected with road facility.
5. Banking facilities and Government supports
6. Adequate Transport facilities for economical transportation of finished product
and spare parts.
7. Nearness to the Market.

INCENTIVES

The Project is entitled to get 45 % subsidy from Central Government and 15% subsidy
from SSID Board.
 NOTES ON INDIVIDUAL HEADS OF MEANS OF FINANCE

(Rs.in lacs)
PROJECT COST AMOUNT MEANS OF FINANCE AMOUNT

Land Capital
Leased

Civil Works Leased Term Loan

Plant & Machinery

Working capital Margin

TOTAL TOTAL

DETAILED NOTES ON PROJECT COST

(a) Land: The Promoter family is having own land at. The Proposed location is
very ideal for the proposed unit.

(b) Buildings & Civil Work:

The Proposed Project will be leased which includes Buildings and Civil Works
except work required for Cold Storage and Freezer.

c) Machinery: A total cost of the machinery is. The suppliers have been
identified. The Promoter is proposed to purchase the machinery from
Ahmedabad, Delhi and Chennai market. The executives from respective
Companies would come and erect and install the machinery.
 IMPLEMENTATION SCHEDULE

Sl.
Aspect Implementation period
No.
1. Placement of Order for July 2017
Machineries
2. Delivery of Machinery August 1st week
3. Commissioning and With in 1 week
Errection
4. Trail Run 2 Weeks
5. Training Staff 2 Weeks
6. Commercial Production 2 Weeks from Trail Run

DETAILED NOTES ON MEANS OF FINANCE

Capital: The proposed capital of the unit is Rs., which will be contributed by the
proprietor.

Term Loan: The Promoter desire to avail term loan from Financial Institute /
Banks. The term loan required is Rs.67.00 lacs. The term loan will be paid in 28
quarterly installments with moratorium period of 12 months. However the interest
on the term loan would be payable as and when it is applied on the account.

UTILITES AND SERVICES

Power: The unit requires 10 HP power under LT connection. The unit is being
located at and will get the required power without any problem.

Employment: The unit will employ 35 persons and will recruit locally.

Water: The unit requires water and domestic water is requiring for drinking and
sanitation, Two Bore wells are provided under civil works head. A Water
treatment plant would be required for treatment of Water.
Pollution: No harmful effluents age generated in the manufacturing process.
However, the unit will get NOC from Pollution control board.

Transport: The project would require 4 mini trucks and out of which 2 are
already available and 2 more would be purchased as machinery.
 SWOT ANALYSIS

STRENGTH:

The unit is proposed at. The unit is eligible for subsidy of 60 % from Central
and State Government. The promoters are having vast experience in the same
line of activity.

WEAKNESS:

The firm has competition from the existing units as the proposed unit is
having latest technology and by the government encouragements to start new
industry the units can competent with the old industries.

OPPORTUNITY:

The firm’s opportunity to diversify into production of Ice cream the market
demand for the future expansion is good for the proposed unit.
 PRODUCTION CHART

BLENDING ICE CREAM PASTEURIZE THE Water

MIX MIX

Age the Mix Homogenize

Add Fruits, Nuts and

Add Liquid Flavors and Freeze
Bulky Flavorings (candy
Colors pieces, etc.)

Harden Package

Sales and Distribution