DPR of Skim Milk Powder

REPORT SUBMITTED TO
THE PARUL INSTITIUTE OF
TECHNOLOGY
IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR
THE DEGREE OF
BACHELOR OF
TECHNOLOGY
IN
DAIRY TECHNOLOGY
BY
SMITKUMAR PATEL
B.Tech. (Dairy Technology)

DAIRY TECHNOLOGY
DIVISION
PARUL INSTITUTE OF
TECHNOLOGY
(PARUL UNIVERSITY)
WAGHODIA, GUJARAT 391760,
INDIA
2021

Enroll. No. 182037104932

 SKIM MILK POWDER

Introduction:
Milk as a source of infant food, occupies a pivotal position being a
unique fluid having the necessary nutrients in 'all in one' package. Large
numbers of people depend upon milk as the most important source of
nourishment next only to staple food grains. Today, the production of dried
milks and milk products has become an increasingly important segment of
the dairy industry. There are definite indications of greater future production
of dried milk and milk products due to their better keeping quality, requiring
less storage space and lower shipping costs all of which are economically
attractive. More non-fat dry milk production takes place than whole milk
powder production due to the high keeping quality.

Objectives:
1. To remove the moisture so as to reduce the bulk, thereby effecting a
saving in storage space and packaging costs.
2. To reduce the cost of transportation.
3. To improve the self-life of the product.
4. To provide a product which can be utilized for many food
manufacturing operations.
5. To conserve, as far as possible, the natural properties of the original
raw material.
Raw material availability:
The main raw material is the milk which can easily available throughout the
India.

Suitable location:
Where the market is available skim milk powder can be manufactured
nearby.

Market opportunity:
Dairy production in India runs on a low input‐low output system, in which
individual producers typically own less than five cattle or buffalo and use locally
available feeds. This has resulted in yield levels that are below international
averages but also the world’s lowest production costs. As dairy product prices and
income from milk collection continue to increase, farmers are slowly growing herd
sizes and increasing their specialization. In addition, interests from private sector
investors have also facilitated construction of larger dairies through partnering
with dairy processors.
Despite the increase in production, a demand supply gap has become
imminent in the dairy industry due to the changing consumption habits, dynamic
demographic patterns, and the rapid urbanization of rural India. This means that
there is an urgent need for the growth rate of the dairy sector to match the rapidly
growing Indian economy.
Dairy is next to agriculture in its importance as a source of income to the
rural house-holds. The Dairy Development Board of India has launched a massive
programme to encourage planned growth of dairying as an industry to augment
financial resources of the weaker sections of society and small farmers in the
backward and rural areas.
Manufacturing process:
Process of Manufacture Ghee:
Upon arrival of milk at the plant, it is weighed, sampled (for laboratory
testing to know the percentage content of milk fast), filtered, pasteurized and
passed directly to cream separator. The price of milk depends upon the fat content
of the milk which varies from 4 to 8%. The cream thus, obtained is stored at the
temperature of 50 °F till the sufficient quantity is collected for the manufacture of
Ghee. The cream is then ripened by inoculating with 5 to 10% of its weight by
starter, it is mixed well and left to ripe for at least 12 to 18 hrs or until0.2 to 0.4
acidity develops. It is then heated in steam jacketed kettle, the impurities (SCUM)
come up at the top which is removed by perforated ladle and the ghee obtained is
filtere3ed through thin cloth and packed.

Process of Manufacture Skimmed Milk Powder:

The fat free (skim) milk obtained from cream separator is collected in storage
tanks. It is heated to a temperature of about 85 degree C to 90 degree C and is
pumped on the surface of the steam heated revolving metallic drum. The steam
pressure in the drier should be about 69 lb/sq. inch (12 degree C temp.). The milk
is dried into a thin film on the surface of roller drum. It is removed by means of
stationery steel scrapper, which is attached from the roller and collected through
screw type burrer. It is then pulverized to desired mesh and packed.

Flow chart:
Receiving of Milk
 Chilling(5ºC)

Pre-Heating(35ºC)

Cream Cream Separation

Skim milk

Pasteurization

Low heat SMP (71ºC/15 sec) High heat SMP (71 ºC/15 sec)

Condensing Pre-Heating (85ºC/20 min)

Re-Heating(63ºC) Condensing

Filtration Re-Heating (63ºC)

Pumping (3000 psi) Filtration

Spray Drying (85 ºC outlet air) Pumping (3000 psi)

 Cooling (32ºC) Spray Drying (85ºC outlet air)

Sifting Cooling (38ºC)

Packaging Sifting

Storage (Room Temp) Packaging

Storage (Room Temp)

CAPACITY OF THE PROJECT:

The total capacity of the unit is to be produced 171 MT Skimmed Milk
Powder per year and 90 MT Ghee per year as a by-product.

PRODUCTION TARGETS (PER ANNUM):

 The scheme is worked out per shift (8 Hour) basis and 300 working
days per annum.
 Assume there’ll be 70% production in first year.
 Quantity: 119.70 MT skimmed milk powder per year or 9.975 MT per
month.
 Quantity: 63 MT Ghee per year or 5.25 MT per month as a by-
product.
 PROJECT COMPONENT AND COST:

FINANCIAL ASPECTS: -

APPLICATION OF FUNDS SOURCE OF FUND

Particular Amount Particular Amount

Land: 700 sq. meter total area Own Capital 4,803,990.27

Building: 400 sq. meter covered area on Loan from Banks
rent 8,261,250.00
10,945,000.0 Loan for
Plant & Machinery
0 Working Capital 3,119,520.81
Office Equipment & 70,000.00
Furniture
Working Capital 5,144,761.08
Pre-Operative Expenses 25,000.00

Total 16,184,761.08 Total 16,184,761.08

 FIXED ASSETS

(1) Land And Building: Value (Rs.)

Land 700 sq. meter and & 400 sq. 360,000 per
meter covered area on rent annum

(2) Machinery And Equipment:

S. Description (Name of machine Qty. Rate Value (Rs.)
N. with specification)
Production Unit
MILK RECEPTION SECTION

i Roller Conveyor 1 30,000.0 30,000.00

0
ii Can Tipping Bar 1 10,000.0 10,000.00
0
iii Weighing Scale 1 100,000.0 100,000.00
0
iv Dump Tank: 1000 L 1 100,000.0 100,000.00
0
v Disc Type Strainer 2 25,000.0 50,000.00
0
vi Can Drip Saver 1 20,000.0 20,000.00
0
vii Can Scrubber 1 90,000.0 90,000.00
0
viii Can Steaming Block 1 20,000.0 20,000.00
0
ix Storage Tank: 1000 L 2 90,000.0 1,80,000.0
0 0
MILK PROCESSING SECTION
x Pasteurization Plant: 1000 LPH 1 800,000.0 800,000.00
0
xi Homogeniser: 1000 LPH 1 600,000.0 600,000.00
 0
xii Chiller 1 300,000.0 300,000.00
0
xiii CIP System: Semi-Automatic 1 900,000.0 900,000.00
0
xiv Pump 4 40,000.0 160,000.00
0
xv Spray Dryer 1 2,500,000.0 2,500,000.00
0
xvi Powder 1 600,000.0 600,000.00
Packaging 0
Machine BY
PRODUCT SECTION
xvii Cream Separator
1 600,000.0 600,000.00
0
xvi Cream Pasteuriser 1 300,000.0 300,000.00
ii 0
ixx Steam Jacketed Kettle: 500 L 2 250,000.0 500,000.00
0
xx Storage Tank: 500 L 1 90,000.00 90,000.00
xxi Ghee Packaging 1 300,000.0 300,000.00
Machine 0
UTILITIES SECTION
xxii Boiler: 500 Kg/Hr
1 800,000.0 800,000.00
0
xxi DG Set: Cap 60 KVA 1 500,000.0 500,000.00
ii 0
xxi Miscellaneous Equipment (pipe &
v fittings, perforated ladle etc.) 0 400,000.00

-
Total Cost of Machinery & Equipments - 9,950,000.00

Electrification & Installation Charges @ 10% - 995,000.00

Total Cost of Production Unit -

10,945,000.00

Furniture & Fixtures - 70,000.00

(3) Pre-Operative Expenses: - 25,000.00

Total Fixed Capital (2+3) - 10,970,000.00

SALES TURNOVER PER MONTH

Qty. (Kg) Rate Value (Rs.)

Description (Rs/Kg)

Skimmed Milk 9,975.00 220.00 2,194,500.00

Powder

Ghee 5,250.00 330.00 1,732,500.00

Total 3,927,000.00

RAW MATERIAL REQUIREMENT & STOCK

Raw Material (per month):

Description with Qty. Rate

Value (Rs.)
specification (Kg) (Rs/Kg)
Milk 29.00 3,045,000.00
105,000.00
Laboratory Chemicals 2,000.00

Total 3,047,000.00
Milk Rs 36,540,000.00

Laboratory Chemicals Rs 24,000.00

Total
36,564,000.00

Stock of Raw Material 30 Days 3,005,260.27

Stock of WIP 02 Days 200,219.18

Purchase Cost of Raw Material Rs 39,769,479.45

ANNUAL CONSUMPTION

WORKING CAPITAL REQUIREMENT

Particulars Days Year' 1

Raw Material 30 3,005,260.27

Work in Process
2 200,219.18
 Finished Goods
10 1,126,404.91
Receivables
30 3,927,000.00
Advance/Security
200,000.00
Total
8,458,884.37
Less: Creditors
30 3,314,123.29
Net Current Assets 5,144,761.08

Paid Stock 1,017,761.08

75% of Paid Stock 763,320.81
60% of Book Debts 2,356,200.00
Bank Limits 3,119,520.81

Margin for Working Capital 2,025,240.27

selling & administration expenses staff and labour expenses

Sr Total
Sr
.
. Particular Year I Description No. Salary Salaries
N
N Year I
o.
o.
i. Postage 15,000.00 (a) Administrative & Supervisory
 ii. Commission on i.
Production 15,000.0
sales 60,000.00 1 180000.00
Manager 0
iii. Office Expenses 48,000.00 ii. Accountant 10,000.0 120,000.0
1
0 0
iv. Tour & Travel 60,000.00 iii. Salesman 192,000.0
2 8,000.00
0
v. Printing & iv.
Stationary 20,000.00 Peon/watchman 1 5,000.00 60,000.00

vi. Advertisement 200,000.0 v. Sweeper 60000.00

1 5,000.00
0
vii. Telephone 60,000.00 vi.

viii. Repair &

60,000.00 Total
Maintenance 612,000.00
Salaries
ix. Conveyance 50,000.00 (b) Technical Skilled & Unskilled

x. Sales expenses 70,000.00 i. Skilled Worker 1 10,000.0 120,000.0

0 0
xi. Insurance 40,000.00 ii. Semi-Skilled 1
8,000.00 96,000.00
Worker
xii. Misc. Expenses 14,000.00 iii. Helper 2 120,000.0
5,000.00
0
xiii. Total Wages 336,000.00

Total 697,000.00 Grand Total 948,000.00

Manufacturing and profit & loss account Balance sheet

Particulars Year' 1 Particulars Year' 1

Liabilities:
Sales Value of Skimmed
Milk 47,124,000.00 Capital 4,803,990.2
Powder and Ghee 7
Cost of Production:
2,108,556.2
Raw Material Consumed: Reserve & Surplus 4
Opening Stock -
39,769,479.4 Secured
5 Loan:
Add: Purchases 39,769,479.4 Term Loan 6,609,000.0
5 0
Less: Closing Stock 3,005,260.27
Raw Material 36,764,219.1
Consumption 8 Unsecured loan:
-
Add: Op Stock of WIP 36,764,219.1
8 Current Liabilities:
Less: Cl Stock of WIP 200,219.18 3,119,520.8
36,564,000.0 1
0 Bank 3,314,123.2
Power & Fuel
1,000,000.0 Borrowings 9
Manufacturing Wages Sundry Creditors
0 19,955,190.6
336,000.00 0

Bonus & Incentives 20,160.00 Assets:

Packaging Materials 913,500.00 Fixed Assets:
Rent 360,000.00 Gross Block: 11,015,000.0
0
Raw material storage & 16,800.00 1,101,500.0
ins. Cost Carriage 238,616.88 0
inward Less: Depreciation 9,913,500.0
0
Depreciation 1,101,500.00
Current Assets:
Total Cost of Production 40,550,576.88 Inventories 4,331,884.3
7
Add: Op. Stock of Finish. - Receivables 3,927,000.0
Goods 0
40,550,576.8 Advance/Security 200,000.00
8
Less: Cls. Stock of F. 1,126,404.91 Cash & Bank 1,562,806.2
Goods Balance 4
39,424,171.9
Cost of Sales 6 Preliminary
Expenses 20,000.00
Gross Profit 7,699,828.04
0.16 19,955,190.6
Selling & Admin 0
Cost: Expenses 697,000.00 Difference 0.00
Salary 612,000.00

Financial Expenses: 975,515.94

Interest on Term Loan
Interest on W. Capital 389,940.10

Pre. Expenses 5,000.00

Profit Before Taxation 5,020,372.00

Taxation 1,506,111.60

Net Profit After 3,514,260.40

Taxation

Cash withdrawal 1,405,704.16

Transfer to Reserves 2,108,556.24
Cumulative Reserves 2,108,556.24
% Of PBT on Sales 10.65

RATIO ANALYSIS BREAK EVEN

ANALYSIS

Particulars Year' 1 Fixed Cost

Net Profit ratio Rent 360,000.00

NP*100/Total sales 7.46 Interest on

 Borrowing 975,515.94
40% of Salaries
40% of Utilities 244,800.00
Rate of Return
NP*100/Total Investment 21.71 25% of Admin
Exp 400,000.00

174,250.00

Depreciation
1,101,500.00

Total
3,256,065.94

Break Even Fixed Cost *

Point 100
Fixed Cost +
Profit

48.09