The following extracts from the handbook Technology of Indian Milk
Products would be of interest to Rural Development Professionals.
Section 4.1 - Production Planning and Implementation
Production Planning and Implementation (Pg 217 - 218)
The feasibility study is essential for implementation of such a
project. It should cover capital investment on land, building, equipment,
infrastructure, working capital, manufacturing and marketing cost,
and financial projections to work out the viability of the project.
Once its viability is established, a detailed project report should
include the following ten steps for project planning and implementation:
First Step: Appoint a consultant to plan the project in
relation to the proposed market, design the dairy plant, and select
an architect and a structural consultant. Prepare tender documents
for civil works and plant equipment.
Second Step: After quantifying the product mix, work out
the process flow diagram showing the material balances.
Third Step: Formulate dairy plant specifications. The proposed
design should include:
- Space required (Floor Area).
- List the equipment, their specifications and
- Prepare the plant layout, including process,
service and storage.
- Provide for service requirements
Fourth Step: Prepare for plant construction by attending
to the following:
- Selection of the site;
- Survey the availability of essential services
like water, electricity, all-weather road, communications, etc;
- Tender for civil works, equipment supply
and installation, and the subsequent award of contracts.
Fifth Step: Formulate the marketing plans for design of brand
name, logo, packaging, procurement of packaging and labelling materials.
Appointment of core staff, including plant manager, administration
and marketing personnel.
Sixth Step: Arrange for sanctions/approvals/clearances by
the Central/State/local statutory authorities.
Seventh Step: Coordinate the civil construction work with
the suppliers for timely installation of the dairy equipment and
Eighth Step: Complete the civil construction to the stage
when equipment can be installed.
Ninth Step: Select and appoint supervisors and the operating
staff. Erection, installation and commissioning of the plant and
Tenth Step: Place the products in the market through well-established
The techno-economic feasibility study is presented in four parts:
Part I: Investment opportunities;
Part II: Plan for product manufacturing;
Part III: Development of plant layout; and,
Part IV: Cleaning and sanitization.
Section 1.1: Modernization Opens Global Markets
Table 1.1.5 Volume and value of market for traditional milk
products, 2001 (Pg 8)
|Curd & curd products
578 ($11.5 billion)
Market: National and Global (Pg
A major market for Indian milk-based sweets is developing
overseas. In North America alone, this market is estimated at US
$500 million. Some 20 million Indians, over half of them living
in the West, are part of the upper income group. The highly successful
Indian community is reported to have an annual income of US $300
billion-almost three times India's GDP.
The Indian diaspora presents an exciting avenue for globalization
of mithais. Entrepreneurs in Europe, North America and Australia
are looking into the prospects of manufacturing them, as is evident
from an increasing number of enquiries received in India for equipment
to manufacture paneer, khoa, shrikhand, gulabjamun, etc. A Canadian
initiative, IDP Foods, Inc, to produce Indian milk products in North
America, has gone on stream in June 2002. It is the largest attempt
outside India to make ethnic Indian dairy products on an industrial
Indian mithais have good commercial market in developed countries
where the share of food in the overall household expenditure is small.
Section 1.2 - Market Survey and Analysis
India: World's Largest Dairy Market (Pg 32)
India today is the worlds largest and fastest growing market
for milk and milk products. With an annual growth rate of about
4.5 per cent, the countrys milk production, mostly rural-based,
exceeded 230 million litres per day (84.6 million tonnes per year)
Some 70 million farmers maintaining a milch herd of about 100 million
54 million cows and 42 million buffaloes, fed largely on
crop residues. They account for 97 per cent of all milk produced
Operation Flood (19701996) has modernized Indias dairy
sector. In 2002, over 30 dairy plants have been awarded the ISO:9000
and HACCP certification, and their number is increasing.
Marketing: The indigenous dairy products account for 50 per
cent of milk utilization. Significant headway has been made in the
industrial production of traditional sweets such as shrikhand, gulabjamun,
peda and burfi.
The bulk of the demand for milk, however, is in urban areas, amounting
to some 125 million lpd, accounting for more than 80 per cent of
Presently, the modern milk distribution network supplies hygienically-packed,
quality pasteurized milk to about 1,000 cities and towns. This number
could go up by almost five times in the foreseeable future. According
to one estimate, the packed, pasteurized, liquid milk segment, presently
estimated at 15 million lpd, would double in the next five years,
giving both strength and volume to the modern sector.
New emerging dairy markets will focus on:
(a) Food service institutional market
(b) Defence market
(c) Ingredients market
(d) Parlour market
Section 4.1 - Production Planning and Implementation
Figure 4.1.6 Mass Balance for production of asteurized/ultrapasteurized
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|"The first of its
kind handbook on the Technology of Indian Milk Products will
help the all-round development of this non-organized sector
on scientific lines".
- Mrs Binoo Sen, Secretary
AH & Dairying, Govt of India