innovative product

Innovative Learning…..: 

Keshari Diary Products By, Arun P Snehal P Mughda D Nilakshi B Rekha G Mithila P Innovative Learning…..

Dairy Industry n Maharshtra..: 

Largest producer of milk Second largest producer of cow's milk in the country 75 lakh people depend on the dairy sector in the State for a living. Common Cattle Breeds – Gaolao , Deoni ,Gir ,Hariana Dairy Industry n Maharshtra ..

Govt Policies…..: 

Government fixes a procurement price for milk (Rs 9 per litre). Government buys 40 lakh liters at an average rate of Rs.9 a litre. Of the 40 lakh litres purchased, nine lakh litres is surplus. Annual loss of more than Rs.200 crores. Decided that it will buy only the quantity it requires. Remaining sold locally by the producer or the cooperative . Govt Policies…..

Collection of milk…..: 

Milk producers members of a village-level Cooperative The village cooperative collects milk for the district union Sent to various urban dairies for processing and distribution 23,273 village societies and 99 taluka or district-level unions Of the Rs.9 the State pays for a litre of milk, the village cooperative keeps 40 paisa and the union 90 paisa Collection of milk…..

Keshari Dairy…...: 

Milk Processing plant for processing raw milk Manufacturing milk based product for both villages and cities Major Products – Flavored milk ,Flavored Curd, Milk based energy drinks. Enhanced milk collection and processing technology Employment opportunity for youth both rural and urban Keshari Dairy…...

The Plant…..: 

Spread in 2 acres of land handling about 10000 liters of milk per day (8 hours) Location close to the highest milk production and collection region (Ahmednagar producing 250,000 litre/day along with societies of Akola region ) Capital cost -- Rs.116.581 lakhs Machinery purchased from ALFA-LAVAL, L&T, HMT, Nichrome Pvt. Ltd., Samarpan Fabricators, Goma Engineering Ltd. etc. The Plant…..

Finance…..: 

Cost of the project -- Rs. 116.581 lac Bank loan -- Rs. 87.436 lac Margin money (Down payment) -- Rs. 29.145 lac Interest on Term loan and Working loan is assumed @ 16% per annum. Repayment period: 6 years including 1 year grace period. Finance…..

Working of the project…..: 

Collecting milk from the villagers and regular suppliers through mobile collection vans at Rs 7.40 per litre Through collection centre set up by the company with unemployed youth at Rs 8.40 per litre (an extra Re1 commission for supplying directly to the collection centre) Processing the milk in the plant for milk products. Payment to the supplier – On weekly basis (govt pays every fortnight) Working of the project…..

Products…..: 

Villages – Product – Raw Milk, Flavored Curd & Milk, Ghee, Butter, Energy Drinks (in the decreasing order of their target sales volume) Urban/Cities -- Product – Raw Milk (tetra pack), Curd, Ghee, Butter, Flavored Milk, Flavored Curd, and Milk based energy drink Products…..

Marketing Strategy…..: 

Villages – Goodwill creation by maintaining transparency in collection, processing and manufacturing of milk based product. Discounts on purchases, additional 10 % subsidy/discount for regular supplier through “white smart card” scheme. Helping to increase cattle quality (vetenary services), low interest loan for purchase of fodder and cattle. Providing employment in collection centers and loan for opening collection centers and factory outlets both in cities and villages. Marketing Strategy…..

Continue…..: 

Cities – Low Pricing as low cost of collection and production Creation of employment Factory outlets in various key locations Commissions for vendors in remote areas and ready availability in hyper store such as big bazaar, etc. Continue…..

The Financial View…..: 

The Financial View….. 1 Land requirement 2 acres 2 Milk handling capacity 10000 liters/day 3 Products to be manufactured Toned milk, Standard milk, Cream, Ghee, Flavored milk, Flavored curd. 4 Market Domestic 5 Cost of the project Rs. 116.581 lac 6 Bank loan Rs. 87.436 lac 7 Margin money (Down payment) Rs. 29.145 lac 8 Repayment 6 years with one year grace period

Key features…..: 

Products either new for villages and cities or of better qualities Low pricing due to enhanced network of supply chain (supply chain management). Ready availability of quality product at affordable price and reasonable quantity. Participation of common man (villages and city unemployed youth) in collection, processing and sales activities thus giving a consumer oriented approach to the organization Key features…..

Capital Cost of the Project…..: 

Sr. No. Particulars Specification Quantity Unit Cost (Rs) Total Cost (Rs. In lakhs) A) LAND AND SITE DEVELOPMENT -- i ) Land (including registration charges) -- 2 acres 78000/acre 1.56 ii) Development charges brick wall 424 RM 165/RM 0.70 iii) Land leveling and roads WBM -- LS 0.80 iv) Water Supply (bore well, tank, pump) -- -- LS 1.75 Total -- -- 4.81 B) CIVIL WORKS -- i ) Dairy plant building RCC 3000 sq.ft 300/sq.ft. 9.00 ACC 1000 sq.ft. 200/sq.ft. 2.00 ii) E T Tanks -- -- LS 0.75 iii) Condenser tank -- -- LS 0.57 iv) Supervisor quarters ACC 450 sq.ft. 250/sq.ft. 1.12 v) Workers quarters ACC 600 sq.ft. 180/sq.ft. 1.08 Total -- 14.52 Capital Cost of the Project…..

Slide 15: 

C) PLANT AND MACHINERY i ) Can conveying and washing system -- -- LS 1.23 ii) Weigh scale 500 kg 2 1,18,000 2.36 iii) Dump tank and accessories 1000 lts 1 59,000 0.59 iv) Detergent tank -- 1 LS 0.31 v) Milk chiller 3000-5000 lph 1 LS 0.97 vi) Cream Separator 2000-5000 lph 1 LS 5.7 vii) Milk pasteurizer 5000 lph 1 LS 7.82 viii) Storage tanks 10,000 lts 2 3,19,000 6.38 ix) S S tanks 300 lts 1 75,500 0.76 x) Packaging machine & accessories 2500 pph 1 3,13,500 3.14 xi) Ghee boiler 500 kg 1 1,76,000 1.76 xii) Ghee storage tank 1000 lts 1 99,000 0.99 xiii) Boiler & accessories 300 kg/h 1 LS 5.46 xiv) D.G. set 62.5KVA 1 LS 3.00 xv) Refrigeration equipment -- -- LS 15.21 xvi) Pumps -- 4 30,000 1.20 Total 64.38

Slide 16: 

D ) MISC . FIXED ASSETS i) Furniture -- -- LS 0.50 ii) Computer Pentium -- LS 0.50 iii) Firefighting equipment -- -- LS 0.10 iv) Collection centre equipment Centrifuge, butyr.20 -- 3000/centre 0.60 v) Work table -- -- LS 0.28 vi) Milk cans 40 lts (plastic) 500 600 3.00 vii) Crate conveying system & trolleys -- -- LS 0.52 viii) Lab equipment -- -- LS 2.50 ix) Effluent treatment plant -- -- LS 3.25 x) Water softener -- -- LS 0.20 Total 12.45 E) VEHICLES i) Jeep Mahindra 1 3,25,000 3.25 ii) Scooter 1 25,000 0.25 Total 3.50

Slide 17: 

F) DEPOSITS i) State electricity board -- -- LS 0.35 ii) Telephone -- -- LS 0.25 Total 0.60 PRELIMINARY & PREOPERATIVE EXPENSES i) Incorporation of company 0.20 ii) Project preparation 0.25 iii) Market survey 0.30 iv) Establishment ( Salary & wages ) 4.73 v) Travelling 0.3 vi) Consultancy 1.00 vii) Administrative expenses 1.00 viii) Interest during construction 2.50 Total 9.38 H) CONTINGENCY ( @ 5% of cost of buildings and misc. fixed assets ) 4.57 I) MARGIN MONEY FOR WORKING CAPITAL ( 25% of first year's requirement - statement - 2 ) 2.37 J) GRAND TOTAL ( A+B+C+D+E+F+G+H ) 116.58

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