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Project Profiles

MILK PRODUCTS
1. INTRODUCTION Milk products like butter, curd, ghee, etc have become an essential part of our food and are consumed in good quantity every day. Inspite of the huge demand that exists for such milk based items conventional methods are employed for producing these items. These milk products are being made with easy both in rural and urban areas using conventional and modern tehcniques. Since the raw material for such products are available easily and locally. Such units can be started at every town and village to provide self-emploment to the youth in the district. Minimal technical knowledge is however required for operating the machinery and other equipment.

2. MARKET Dairy development in India has been acknowledged the world over as one of modern India's most successful development programme. India is the seocnd largest milk producing country with anticipated production of about 78 million tons during 1999-2000. The production of milk products stood at 3.07 lakh tonnes in 1999-2000. Production of milk powder including infant milk food has risen to 2.25 lakh tons in 1999-2000, whereas that of malted food is at 65,000 tons. Off late, market for milk products showing a steady increase.

3. MANUFACTURING PROCESS Production of dairy products is very easy process and traditionally housewife can do this activities in their houses. Raw milk is to be boiled in utencils, after boiling the milk the temperature of the milk has to be reduced. Cream is appeared on top of the milk. It should be separated and apply chilling method. Butter will be removed to prepare ghee. The ghee is ready for packing. The semi boiled milk to be formed as curd after adding small quantity of curd. From hot milk sweets can be prepared with adding some amount of sugar.

4. PRODUCTION CAPACITY PER ANNUM Capacity Selling Price 5. PROJECT COST/CAPITAL INVESTMENT
S.No Description

3000 kgs Rs. 160 per kg

per annum

Amount Rs.

1 2 3

Preliminary & Preoperative Expns Fixed Capital Working Capital for

month(s)

1000 25000 37500

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Project Profiles

Total Project Cost 6. MEANS OF FINANCE

S.No Description %age

63500

Amount Rs.

1 2 3

Promoter Contribution Subsidy /Soft Loan Term Loan Total

15% 20% 65%

9525 12700 41275 63500

7. FINANCIAL ASPECTS A. FIXED CAPITAL i. Land and Buildings ii. Machinery and Equipment
S.No Description Qty. Rate Amount Rs.

Rented

1500 per month

1 2 3 4 5

Gas stove Packing machine Labelling machine Utencils Electrification, etc Total

1 1 1 1 1

6000 3000 3000 10000 3000

6000 3000 3000 10000 3000 25000

B. WORKING CAPITAL i. Salaries & Wages (per month)

S.No Description Nos. Sal/mon. Amount Rs.

1 2 3

Supervisor/Entrepreneur Skilled Labour Unskilled Labour Total

1 1 1

2500 2200 1500

2500 2200 1500 6200

ii. Raw Material (per month)

S.No Description Unit Qty. Rate Amount Rs.

1 2

Milk Packing Total

Ltrs kgs

2000 900

12 2

24000 1800 25800

iii. Utilities (per month)

S.No Description Unit Amount Rs.

1 2

Power Water Total

LS LS

500 500 1000

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Project Profiles

iv. Other Expenses (per month)

S.No Description Amount Rs.

1 2 5

Postage & Stationery Expenses Transportation Expenses Miscellaneous Expenses Total

1000 1000 1000 3000

v. Total Working Capital (per month)

S.No Description Amount Rs.

1 2 3 4 5

Rent Salaries and Wages Raw Material Utilities Other Expenses Total

1500 6200 25800 1000 3000 37500

8. COST OF PRODUCTION (PER ANNUM)

S.No Description Amount Rs.

1 2 3

Total Working Capital Depreciation Interest Total

@ @

15% 12%

450000 3750 4953 458703

9. TURNOVER (PER YEAR)

S.No Description Unit Qty. Rate Rs. Amount Rs.

Milk products Total

kgs

3000

160

480000 480000

10. FIXED COST (PER YEAR)

S.No Description Amount Rs.

1 2 3 4 5

Depreciation Interest Rent Salaries & Wages @ 40% Other Expenses incl. Utilities @ 40% Total

3750 4953 18000 29760 19200 75663

11. PROFIT ANALYSIS & RATIOS 1 2 3 4 Net Profit Percentage of Profit on Sales Percentage of Return on Investment Break Even Point Rs. 21297 4% 34% 78%