Krantisinh Project Report Final

M/s Krantisinh Milk and Milk Products.

PROJECT REPORT

OF

KRANTISINH MILK AND MILK PRODUCTS

Factory add: Gat no. 468,

A/p Hanmantwadiye, Tal-Kadegaon,

Dist-Sangli.

INDEX


Sr. No. PARTICULARS

1 PROJECT IN BRIEF

2 INTRODUCTION TO PROJECT

3 COMPANY PROFILE

4 MANAGEMENT

5 PROPOSED PROJECT

6 STATUTORY APPROVALS

7 PRODUCTION PROCESS

8 DETAILS OF PURCHASE AND SALES

9 COST OF PROJECT AND

MEANS OF FINANCE

10 SECURITY PROVIDED

11 INDUSTRIAL SCENARIO

12 SWOT ANALYSIS

13 CONCLUSION

PROJECT IN BRIEF

NAME OF THE COMPANYKrantisinh Milk and Milk Products


NATURERegistered Partnership Firm

DATE OF ESTABLISHMENT 10/06/2010

BUSINESS ACTIVITY Milk collection, chilling and processing.

LOCATION OF - REGISTERED OFFICE:

FACTORY:

Gat no. 468, A/p Hanmantwadiye, Tal-Kadegaon, Dist-Sangli.

Gat no. 468, A/p Hanmantwadiye, Tal-Kadegaon, Dist-Sangli.

PARTNERS 1. Mr. Jairam Navnath More2. Mr. Sudhir Siddhanath Indalkar3. Mr. Sandip Krushnadev Jadhav4. Mr. Vaibhav Ramchandra Sawant5. Mr. Ranjit Vilas Patil

EXISTING LIMITTerm Loan: Rs.230.00 Lakhs and Cash Credit Limit: Rs. 75.00 Lakhs

PROPOSE BANKING REQUIREMENT

Term Loan: Rs. 150.00 Lakhs

REPAYMENT PERIOD The firm has projected repayment of term loan of Rs.150.00 lacs in 20 equal quarterly installments of Rs.7.50 lacs.

EXISTING BANKERPunjab National Bank.

INTRODUCTION TO PROJECT

Our Indian economy is an agricultural economy. 70 % of our Indian

population carries on the occupation of Agriculture. Agriculture consists

of farming, poultry farming, dairy farming and their related agro based


industries. Dairy farming, Industries and related businesses has emerged

as the major side business in the recent years. Dairy Industry is

dependant upon agriculture and hence is considered as part of

agriculture. In past, dairy animals i.e. cows and buffalos were used for

draught and personal purposes, but with change in time and nature the

attitude towards this animals has also been changed. Farmers are

developing the dairy work and making it as business for earning income.

Dairy farming and industry is one of the fastest growing industries.

By considering these facts in Kadegaon Taluka of Sangali District, the

majority of Farmers are engaged somehow in dairy industry. Miraj is

irrigated under Krishna Rivers. The normal cropping of pattern is

Sugarcane, Jawar, Bajra, Wheat, Oranges, Sweet lime, Onion, Potato etc.

There is ample quantity of agricultural green fodder waste from

sugarcane tops Jawar, Bajra, Maize, Potato, Onion and Groundnut. This

has supported the dairy business and therefore development of side

business of dairy farming has been made by farmers. Almost each and

every farmer has Cows or buffalos for giving milk. Farmers also have

developed the basic infrastructure facilities like from sheds, dairy animals

green fodders etc. But since the farmers are uneducated, illiterate the

business of dairy farming is not yet organized and developed. They need

leadership, support and guidance for this farming.

The National Dairy Development Board (NDDB) is also making good

programs existing through financial support providing guidance for

developing and increasing the productivity of dairy product. Under

operation flood program of NDDB significant progress has made in dairy

development through co-operative structures.


COMPANY PROFILE

Krantisinh Milk and Milk Products is a partnership firm established on 10th

June 2010 with five partners viz. Mr. Jairam Navnath More, Mr. Sudhir

Siddhanath Indalkar, Mr. Sandip Krushnadev Jadhav, Mr. Vaibhav

Ramchandra Sawant and Mr. Ranjit Vilas Patil registered under The

Partnership Act 1932.

The partners have established the firm for the purpose of production of

Milk and Milk products and the installed capacity of the plant is 40000

LPD. With the new funding available for homogenizer and pasteurizer,

the firm will enhance the capacity to 50,000 LPD and will be able to

manage the existing quantity of milk.

The main objectives of the Plant shall be as follows -

To collect quality milk and chilling.

To carry on Business of milk processing.


To take an opportunity for the development of farmers by being

amongst farmers to help them, to provide them proper market.

To give them maximum yields on their milk.

MANAGEMENT

M/s Krantisinh Milk and Milk Products is partnership firm with following

partners:

Name of Partners Address

Mr. Jairam Navnath More At post Hanmantwadiye, Tal-

Kadegaon, Dist-Sangli.

Mr. Sudhir Siddhanath Indalkar At Ukirde, post mahimangad, Tal-

Maan, Dist-Satara.

Mr.Sandip Krushnadev Jadhav At Kurli, post- Chinchani, Tal-

Khanapur, Dist-Sangli

Mr. Vaibhav Ramchandra

Sawant

‘Anuram Nivas’, Sawarkar nagar,

Vita, Tal-Khanapur, Dist-Sangli.

Mr. Ranjit Vilasrao Patil At post Hanmantwadiye, Tal-

Kadegaon, Dist- Sangli.

Partner No. 1

Name Mr Jairam Navnath More

Address At post Hanmantwadiye, Tal-Kadegaon, Dist-

Sangli.


Birth Date 9/06/1981

PAN no BNRPM7153D

Mail ID [email protected]

Contact no. 9158632525 & 9975686000

Qualification B.A. (Geography)

Experience Mr. Jairam Navnath More is one of the

Partners in the firm.

He is having a good experience in the

Milk Industry.

His experience covers a wide array of

areas in collection, distribution, and

Processing department.

He is also an agriculturist and has home

dairy farming business.

Thus he is having vast experience in this

field.

Partner No. 2

Name Mr. Sudhir Siddhanath Indalkar

Address At Ukirde, post mahimangad, Tal- Maan,

Dist-Satara.

Birth date 7/07/1979

PAN ABCPI0161R


Contact no. 9922470047

Educational

Qualification

B.A. (History)

Experience Mr.Sudhir Siddhanath Indalkar is

one of the partners in the firm.

He works in Merchant navy and also is

http://in.mc953.mail.yahoo.com/mc/[email protected]



an agriculturist.

Now he is very eager to get into the

business of dairy farming.

Partner No. 3

Name Mr. Sandip Krushnadev Jadhav

Address At Kurli, post- Chinchani, Tal- Khanapur,

Dist-Sangli


PAN AMPBJ6654L



Educational

Qualification

M.A. (Hindi)

Experience Mr. Sandip Krushnadev Jadhav is


He is an agriculturist and also has a

family business of dairy farming.

He is having a very good experience in

this field and hence very capable of

running the dairy farming business

successfully.

Partner 4

Name Mr. Vaibhav Ramchandra Sawant

Address Anuram Nivas’, Sawarkar nagar, Vita, Tal-

Khanapur, Dist-Sangli.


PAN CDLPS4097P






Educational

Qualification

M.A. BEd

Experience Mr. Vaibhav Ramchandra Sawant is


He is a teacher by profession and also

has good knowledge of agriculture.

Now he is entering into the field of dairy

farming.

Partner 5

Name Mr. Ranjit Vilasrao Patil

Address At post Hanmantwadiye, Tal- Kadegaon,

Dist- Sangli.


PAN AUGPP3670F



Educational

Qualification

B.E. (Elect.)

Experience Mr. Ranjit Vilasrao Patil is one of the

partners in the firm.

He is a well educated agriculturist and

also runs a business of dairy farming.

He is having a very good experience in

both the field of agriculture and dairy

farming and hence capable of running

business successfully.



PROPOSED PROJECT:

Krantisinh Milk and Milk Products is a partnership firm started on 10th

June 2010. The firm has established itself in the field of milk and milk by-

products with the help of term lending available from Punjab National

Bank. With the help of funding the firm had established 40,000 LPD of

milk processing plant in 2011-12. With time, the firm established

concrete network among farmers and now the firm is running at approx

85% capacity utilization in 2 shifts. The repayment of the term loan has

started and it is STANDARD. Now, the firm has planned for an expansion

and will be enhancing the capacity from 40,000 LPD of milk processing to

50,000 LPD of milk processing. The firm will continue to sell the milk in

pouches as well as in tanker. The expansion can take place in the

existing facility since the civil construction which was made during 2011-

12 is adequate enough to accommodate milk processing upto 1.00 Lacs

LPD. The firm will purchase homogenizer and pasteurizer (Plate Heat

Exchanger) from the term lending along with SS piping and fittings for

the capacity enhancement.

HIGHLIGHTS OF THE PROJECT:

Three of the Partners are already into the business and have sufficient

experience in the field

Well qualified and dedicated staff.

Well qualified manpower team

The firm is having tie up with Hutatma Sahakari Dudh Utpadak Sangh

for supply of milk.

Location Advantage –Various small villages for Milk collection located

in vicinity.

STATUTORY APPROVALS:

PAN Card : AAKFK4298G


Partnership Registration No: MPA-80363

Partnership Deed : 10/06/2010

MPCB : Consent to Establishment.

District Industries Center : Form No. 01063

Acknowledgement Memorandum No. 27 035 11 03463

MSEB : 100 HP power connection.

ISO Certification

MAN POWER:

The day to day management is looked into by the Partners. For other

activities firm has recruited the following staff:

S.No. Particulars Nos.

1 Dairy Manager 1

2 General Manager 1

3 Milk Plant Operator 3

4 Electrician 2

5 Unskilled Laborers 10

6 Chilling plant operator 2

7 Skilled Laborers 4

8 Chemist 4

9 Accountant 3

10 Quality control officer 1

11 Watchman 3

Total 34

LOCATIONAL ADVANTAGE and TRANSPORTATION:


The unit is located at a place that is surrounded by milk producing

villages. These places are milk enrich places and plenty of milk is

available in this place. Also the village is native place for the Promoters

thus guaranteed assurance for supply of milk daily to the company.

Also the plant is well connected to roads and hence there is no

transportation problem for the firm for transporting the milk.

PRODUCTION PROCESS

a) Collection of Raw Milk: The Milk is collected primarily by the Milk

Collection Centre in Cans, established at each village in the Taluka.

Then the milk is carried to processing plant with the help of Transport

Vehicles. The Transport Vehicle is hired by the firm. Firm has also

purchased 2 Vehicles.

b) Reception of Milk: The Milk Cans is transported at receiving Dock.

At that point the quality and quantity is checked and is recorded in

terms of Fat, SNF and weight etc. Then the milk is dumped in the

Dump tank. This milk is then online filtered and passed in the Chilling

Section.


c) Chilling of Milk: The filtered milk is chilled up to 4 Degree Celsius,

using a single section plate heat exchanger to prevent the

bacteriological activities. This milk is stored in Storage Tanks.

d) Pasteurization of Milk: Pasteurization is done by HTST type

pasteurizer with inline cream separator and milk is heated up to 85

Degree Celsius and held for 15 Sec. under 15 inches pressure. Then

again milk is chilled and the temperature is brought down to 4oC. The

Pasteurization is done to improve the shelf life of milk by almost

sterilization of the milk. Cream Separation is done so as to standardize

the milk up to the recommended fat percentage.

e) Homogenization of Milk: Milk is homogenized with high pressure

homogenizer so as to avoid visible cream formation even after 48 hours

of Storage.

f) Packaging of Milk: After Homogenization, milk is sent to refrigeration

section. As per the requirement the packaging is done

DETAILS OF PURCHASE & SALE


The raw material i.e. milk is collected and purchased from the farmers

and from home milk business. Three of the Partners are already into

the business and have their existing supplier tie-ups. Also the firm is

collecting milk from mini dairies and also from the villagers residing in

villages of the Kadegaon Taluka. The Current capacity of collection and

processing is about 40000 liters per day which will get enhanced to

50000 LPD.

Sale of Milk:

Milk is an essential commodity it is required daily for consumption. The

firm is currently selling milk produced in tanker and pouches.

The firm has tie-ups with Hutatma Dudh Sangh, Walwa. who is

cuurently buying milk from Krantisinh Milk and Milk Products. Hence

there is no problem for selling the milk. Also, the firm is selling milk in

pouches to Mumbai and Pune market.

Sale in tankers : 30000 liters per day

Sale in pouches : 10000 liters per day

COST OF PROJECT AND MEANS OF FINANCE:

S.NO. DETAILS Total

1 Land 0.00

2 Plant & Machinery 199.82

Sub-Total 199.82

8 Preliminary expenses/ Pre operative 2.00

Total 201.82


MEANS OF FINANCE

Sr. No. Particulars Amount

1 OWN CONTRIBUTION 51.82

2 TERM LOAN 150.00

TOTAL COST OF PROJECT 201.82

REPAYMENT OF TERM LOAN

The term loan is proposed to be repaid in 24 equal quarterly

installments of Rs.7.50 lacs, which ends in Dec 2020 and a three

months moratorium Period. The interest component would be repaid as

and when charged.

SECURITY

Primary security:

For Term Loan:

Hypothecation of fixed assets purchased out of bank term loan.

Collateral security:

Herambh Residency, Flat no. 7, 2nd Floor, Sector no. 61, Purnanagar,

Chinchwad, Pune having total area of 850 sq feet carpet area and in the

name of Mr. Sudhir Siddhanath Indalkar (One of the Partner of the firm)


INDUSTRIAL SCENARIO

Government of India has identified dairy development as an important

rural based economic activity and is providing sizeable amount of fund in

all. Their development plans consist of providing grants and subsides and

educational programs increasing the productivity of milk.

The dairy project /plan is a source of nutritive food and is a good

potential for generating employment income and helps to alleviate

poverty in rural areas.

Currently overall productivity of milk in about 87 million tons the present

per capita consumption is only 185 gms milk day. However the minimum

recommended is 250 gms milk/day. This indicates a vast scope for

further development considering that Indian population is predominantly

vegetarian and also its economic power to buy milk is also growing, there

is bright future for their industry.

Similarly out of total milk produced in the country, only 15% to 20% is

marketed under organized sector. Thus there is also a good scope in

future in private sector in processing and marketing dairy (i.e. milk and

milk products.)

Scenario in Maharashtra: -

The current milk production in Maharashtra is about 20 million liters per

day out of which only about 5million liters is marketed through co-

operatives and the balance is marketable surplus.

Similarly with rapid growth in industries in metro cities like Mumbai,

Pune, Nasik etc. the productivity of milk in that areas has been

decreasing as compared to their population however element with

growth in industries. However demand of milk is increasing day by day

with growth in industries and population


This increases the scope and market for production in other districts and

villages. Thus the demand is increasing for milk. Government of

Maharashtra has launched various dairy, development programs through

Animal husbandry departments and has also announced various

incentives schemes so as to uplift milk production in Maharashtra.

Scenario in Sangli District:

Sangli is one of the leading milk producing district in Maharashtra.

Besides the infrastructure, climate, breeding and veterinary aids

available from the animal husbandry helps in the process of milk

production. According to Department of government of Maharashtra,

there is a good network of milk procurement from co-operative societies.

There are lots of co-operative as well as private dairies and big farmers

which supply milk to the plants.

DSCR

(Rs. In Lacs)

PARTICULARS2014-

152015-

162016-

172017-

182018-

192019-

202020-

21 Total

PAT 8.47 65.34 81.31 94.78 109.25 125.07 74.02 568.48(+) DEPRECIATION & MISC. EXP 28.35 41.08 50.26 43.07 36.94 33.24 29.92 302.73(+) INTEREST ON TERM LOAN 33.97 28.31 22.65 16.98 11.32 5.66 0.71 168.52

SUB TOTAL 70.79 134.72 154.22 154.83 157.51 163.97 104.65 1039.73

INTEREST ON TERM LOAN 33.97 28.31 22.65 16.98 11.32 5.66 0.71 168.52REPAYMENT 35.38 42.88 65.38 65.38 65.38 47.69 22.50 380.00SUB TOTAL 69.35 71.19 88.03 82.37 76.71 53.35 23.21 548.52

DSCR (A/B) 1.02 1.89 1.75 1.88 2.05 3.07 4.51 1.90

AVERAGE DSCR 1.90



SWOT ANALYSIS

STRENGTH

Three of the partners of the firm are having experience in this

business line and have sufficient experience to run the business

efficiently and profitably.

Partners are resourceful and have already brought in their

margin to large extent into the business.

The firm has already existing tie ups with suppliers like Hutatma

Dudh Utpadak Sangh for regular supply of milk and also they will

supply the processed milk to dairies.

Milk is essential commodity for human being and is required for

daily consumption.

WEAKNESS

There are already existing brands in the market and hence there

will be stiff competition. In this condition the firm will maintain its

quality and establish itself in the market.

OPPORTUNITY

There is shortage of milk and milk products in the market

creating demand supply gap in market.

THREATS

Competition from the existing units of similar type in the area of

operation.


CONCLUSION:

Thus Application for Term Loan of Rs. 150.00 Lacs is made herewith.

Kindly consider our Proposal and arrange to sanction it at the earliest.

Krantisinh Milk & Milk Products.

Documents

Krantisinh Project Report Final