Project Profile: Dairy Products


The organized dairy sector (both cooperatives and private) is presently handles about 15 per cent of total milk production in the country. Thus it indicates, there is a wide scope for processing of milk and manufacture of milk products for domestic consumption as well as export. Bulk Milk Cooler (BMC) / Milk Chilling plants This involves collection of milk from villages, chilling the milk to 3-4 degree Celsius and transporting to the main dairy for further processing and manufacture of products. In majority of cases these are part of the milk processing facility.

In the dairy sector, most of the processing is done by the unorganized sector. Though the share of organized sector is less than 15 per cent, it is expected to rise rapidly, especially in the urban regions. Among the milk products manufactured by the organized sector, some of the prominent ones are ghee, butter, cheese, Curds/Yogurt.


Maximum Dairy Products are generally used in each and every household. Other than this, Major revenue of the business collected by commercial consumption.


· Fresh Milk Pouch Packaging

· Cream

· Paneer

· Curds/Yogurt

· Ghee


The primary objective of the model report is to facilitate the entrepreneurs in understanding the importance of setting up unit of Fruit & Vegetable Powder. This model report will serve as guidance to the entrepreneurs on starting up such a new project and basic technical knowledge for setting up such a facility.

Critical Success Factors

With increasing health awareness, many people are switching over to branded products. These Products may be consumed at Railway stations, air-ports, bus-stands, tourist spots, picnic centres, cold drink stalls, hostels, restaurants, coffee bars or fast food restaurants, clubs, school canteens etc., which are the major outlets.

Raw Material

Basic Raw material for proposed unit is Fresh Milk.


The capacity of the project is 100,000/- LPD, assuming the working capacity of the machinery is 20 Hrs per day for 300 working days.

Manufacturing Process

Fresh Milk Pouch Packaging and Cream Separation:

Milk is collected from the farmers and transported to milk plants for its processing into mass market milk and other dairy products such as: cream, cheese, yogurt, Ghee etc. Following process will be used to Pack Fresh Milk and Cream Separation:

· Milk Reception Units

· Milk Storage Units

· Milk Sterilization & Pasteurization

· Cream Separation

· Packaging


To produce cheese, milk is mixed with rennet or acid to form curds using a curd making machine. Curds follow different types of processes depending on the type of cheese to be made, but generally they need to be drained, pressed, formed and stored, using different types of equipment such as cheese formers, cheese drainers and cheese block forming machines. Once the curds have been transformed into cheese, the product follows the process to the packaging lines. Cheese can be packaged in carton, film, thermoformed terrines, etc.


The raw milk is taken in a well-cleaned vessel and the milk is boiled for about 5 minutes and cooled down to lukewarm temperature of about 45ºC and then inoculated with pure Curd culture (1 teaspoonful per litre). Mix the whole content very well and distribute it in small containers of desired size earthen pots. Keep the whole lots or small containers at a warm place at temperature ranging 42-50ºC. When it gets completely curded remove it from warm place, which will generally take 3½-4 hours. The temperature should not be kept below 40ºC, otherwise no firm curd will be obtained. Once the curd is set, transfer it to a cool place, preferably a refrigerator. It is now ready for Packaging.

Ghee & Butter Milk:

The curd thus prepared is put in churner cum agitator vessel along with pure bacteria free potable water in ratio 1:4. Churn the mixture continuously for 40 minutes and skim out the cream comes up on the top. This cream is boiled to remove the water content and the product is ready for consumption. Add salt and spice extracts of ginger, chilly, curry leafs to the remaining part to get buttermilk.

Land Area Requirement

Land should be connected with the Road and Rail. The Project Land should also have easy availability of the water and electricity. The ideal land require for the project is 1.00 Acre

Implementation Schedule

It will take Eighteen (18) months to complete all the formalities before starting the commercial production.

Financial Aspects

  1. Civil Infrastructure : 2.80 Cr.

  2. Plant & Machinery : 6.70 Cr.

  3. Other Expenses : 1.00 Cr.

  4. Total Project Cost : 10.50 Cr.

Means of Finance

  1. Equity Contribution (30%) : 3.15 Cr.

  2. Bank Finance (70%) : 7.35 Cr.

  3. Total Project Cost : 10.50 Cr.

Government Incentives

1. Government of India has designed a Pradhan Mantri KisanSampada Yojana, In Which Capital Grant from Rs. 5 to 10 Crore is being provided as per the scheme guidelines.

2. Considering Agro and Food Processing as a priority sector various state government are also providing Incentives like Capital Investment Subsidy, Interest Subsidy, Labour Subsidy, Tax Benefits etc.

Our firm Provides following Services

» Project Management Services

o Pre-feasibility Study of the Project and existing market analysis of the product to be manufactured.

o Conceptualization of the Project and Finalization of Project Components.

o Bankable/Detailed Project Report

o Assistance in Grant/ Subsidy

o Detailed Design and Engineering of the Project

o Technology Sourcing

o Project Management Consultancy

o Supply Chain Management

o Agriculture Advisory Services etc.

» Food Product Development Services

o Suitable & Innovative Packaging as per product characteristics

o Bio-Degradable Packaging

o Development of range of variant of product with suitable packaging as per the requirement of product.

» Food Safety & Quality Licenses



o Spice Board of India


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