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

M/s Krantisinh Milk and Milk Products.

Sr. No.

PARTICULARS

PROJECT IN BRIEF

INTRODUCTION TO PROJECT

COMPANY PROFILE

MANAGEMENT

PROPOSED PROJECT

STATUTORY APPROVALS

PRODUCTION PROCESS

DETAILS OF PURCHASE AND SALES

COST OF PROJECT AND

MEANS OF FINANCE

10

SECURITY PROVIDED

11

INDUSTRIAL SCENARIO

12

SWOT ANALYSIS

13

CONCLUSION

PROJECT IN BRIEF
NAME OF THE

COMPANY
Krantisinh Milk and Milk Products

M/s Krantisinh Milk and Milk Products.

Registered Partnership Firm

NATURE
DATE OF
ESTABLISHMENT

10/06/2010

BUSINESS ACTIVITY

Milk collection, chilling and processing.

LOCATION OF REGISTERED OFFICE:

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

FACTORY:

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

PARTNERS

1.
2.
3.
4.
5.

EXISTING LIMIT

Mr.
Mr.
Mr.
Mr.
Mr.

Jairam Navnath More

Sudhir Siddhanath Indalkar
Sandip Krushnadev Jadhav
Vaibhav Ramchandra Sawant
Ranjit Vilas Patil

Term 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.
Punjab National Bank.

EXISTING BANKER

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

M/s Krantisinh Milk and Milk Products.

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.

M/s Krantisinh Milk and Milk Products.

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.

M/s Krantisinh Milk and Milk Products.

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-

Mr. Sudhir Siddhanath Indalkar

Kadegaon, Dist-Sangli.
At Ukirde, post mahimangad, Tal-

Mr.Sandip Krushnadev Jadhav

Maan, Dist-Satara.
At Kurli, post- Chinchani, Tal-

Mr.

Vaibhav

Khanapur, Dist-Sangli
Ramchandra Anuram Nivas, Sawarkar nagar,

Sawant
Mr. Ranjit Vilasrao Patil

Vita, Tal-Khanapur, Dist-Sangli.

At post Hanmantwadiye, TalKadegaon, Dist- Sangli.

Partner No. 1
Name
Address

Mr Jairam Navnath More

At post Hanmantwadiye, Tal-Kadegaon, Dist-

Birth Date
PAN no
Mail ID
Contact no.

Sangli.
9/06/1981
BNRPM7153D
jayram.more.9@gmail.com
9158632525 & 9975686000

M/s Krantisinh Milk and Milk Products.

Qualification
Experience

B.A. (Geography)
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
Address

Mr. Sudhir Siddhanath Indalkar

At Ukirde, post mahimangad, Tal- Maan,

Birth date
PAN
Mail ID
Contact no.
Educational

Dist-Satara.
7/07/1979
ABCPI0161R
indalkars07@gmail.com
9922470047
B.A. (History)

Qualification
Experience

Mr.Sudhir Siddhanath Indalkar is

one of the partners in the firm.
He works in Merchant navy and also is
an agriculturist.
Now he is very eager to get into the
business of dairy farming.

Partner No. 3
Name
Address

Mr. Sandip Krushnadev Jadhav

At Kurli, post- Chinchani, Tal- Khanapur,

Birth date
PAN
Mail ID

Dist-Sangli
1/06/1976
AMPBJ6654L
sandipjadhav.k@gmail.com

M/s Krantisinh Milk and Milk Products.

Contact no.
Educational
Qualification
Experience

9158852121
M.A. (Hindi)
Mr. Sandip Krushnadev Jadhav is one
of the partners in the firm.
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
Address

Mr. Vaibhav Ramchandra Sawant

Anuram Nivas, Sawarkar nagar, Vita, Tal-

Birth date
PAN
Mail ID
Contact no.
Educational

Khanapur, Dist-Sangli.
16/06/1981
CDLPS4097P
vaibhavsavant16@yahoo.com
9421125878
M.A. BEd

Qualification
Experience

Mr. Vaibhav Ramchandra Sawant is

one of the partners in the firm.
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
Address

Mr. Ranjit Vilasrao Patil

At post Hanmantwadiye, Tal- Kadegaon,

Birth date
PAN

Dist- Sangli.
9/01/1972
AUGPP3670F

M/s Krantisinh Milk and Milk Products.

Mail ID
Contact no.
Educational
Qualification
Experience

ranjitpatil.v@gmail.com
9860440462
B.E. (Elect.)
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 byproducts 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 201112 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:

M/s Krantisinh Milk and Milk Products.

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

Acknowledgement
MSEB

: Form No. 01063

Memorandum No. 27 035 11 03463
: 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.
1
2
3

Particulars
Dairy Manager
General Manager
Milk Plant Operator

Nos.
1
1
3

M/s Krantisinh Milk and Milk Products.

4
5
6
7
8
9
10
11

Electrician
Unskilled Laborers
Chilling plant operator
Skilled Laborers
Chemist
Accountant
Quality control officer
Watchman
Total

2
10
2
4
4
3
1
3
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.

M/s Krantisinh Milk and Milk Products.

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

M/s Krantisinh Milk and Milk Products.

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

M/s Krantisinh Milk and Milk Products.

COST OF PROJECT AND MEANS OF FINANCE:

S.NO.

DETAILS

Total

Land

0.00

Plant & Machinery

199.82

Sub-Total

199.82

Preliminary expenses/ Pre operative

2.00

Total

201.82

MEANS OF FINANCE
Sr. No.
1
2

Particulars
OWN CONTRIBUTION
TERM LOAN
TOTAL COST OF PROJECT

Amount
51.82
150.00
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.

M/s Krantisinh Milk and Milk Products.

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)

M/s Krantisinh Milk and Milk Products.

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 cooperatives 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

M/s Krantisinh Milk and Milk Products.

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)
PARTICULARS

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

2020-21

Total

PAT
(+) DEPRECIATION & MISC. EXP
(+) INTEREST ON TERM LOAN
SUB TOTAL

8.47
28.35
33.97
70.79

65.34
41.08
28.31
134.72

81.31
50.26
22.65
154.22

94.78
43.07
16.98
154.83

109.25
36.94
11.32
157.51

125.07
33.24
5.66
163.97

74.02
29.92
0.71
104.65

568.48
302.73
168.52
1039.73

INTEREST ON TERM LOAN

REPAYMENT
SUB TOTAL

33.97
35.38
69.35

28.31
42.88
71.19

22.65
65.38
88.03

16.98
65.38
82.37

11.32
65.38
76.71

5.66
47.69
53.35

0.71
22.50
23.21

168.52
380.00
548.52

1.02

1.89

1.75

1.88

2.05

3.07

4.51

1.90

DSCR (A/B)
AVERAGE DSCR

1.90

M/s Krantisinh Milk and Milk Products.

M/s Krantisinh Milk and Milk Products.

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.

M/s Krantisinh Milk and Milk Products.

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.