Industry Overview
Andhra Pradesh accounts for 8.4 percent of India’s dairy animal population and produces 7.6 percent of the country’s milk. Dairy production in the state is largely based on small farms of less than 2 hectares with 1 to 4 dairy animals. Milk yields are slightly higher than the Indian average and have been increasing at a faster rate, although farm-gate milk prices remain slightly lower than the national average.
The Indian dairy industry has expanded substantially over the past two decades. Milk production increased from about 17 million tons in 1950 to 122 million tons in 2011, while milk handled by the organized sector rose to 81 million litres per day from approximately 6 million liters per day during the 70s. Urbanization, greater health awareness and rising middle-class purchasing power have significantly changed dairy consumption patterns, increasing demand for safe, nutritious and convenient milk products.
This environment supports greater value addition, product diversification and quality assurance across the dairy sector. Milk remains an important and highly nutritious food containing proteins, fat, sugar, minerals and vitamins. Continued income growth is expected to support higher milk consumption and movement toward value-added dairy products, creating opportunities for technological development, improved processing and stronger human-resource capabilities.
Cost Estimation
| Particulars | Value |
|---|---|
| Plant Capacity | 3000 Ltr/Day |
| Land & Building (2 Acres) | Rs. 23 Lac |
| Plant & Machinery | Rs. 50 Lac |
| Working Capital for 1 Month | Rs. 44 Lac |
| Total Capital Investment | Rs. 1.26 Cr |
| Rate of Return | 30% |
| Break Even Point | 61% |
Content Index
- INTRODUCTION
- NORMALLY THE COMPOSITION OF MILK IS AS GIVEN BLOW:
- THE COMPOSITION OF MILK FROM VARIOUS ANIMALS:
- PROPERTIES
- PROPERTIES OF GHEE
- PHYSICAL PROPERTIES
- CHEMICAL PROPERTIES
- PROPERTIES OF BUTTER
- USES AND APPLICATION
- GHEE & BUTTER:
- PANEER:
- B.I.S SPECIFICATIONS
- OVERVIEW OF INDIAN DAIRY INDUSTRY
- STRUCTURE OF THE INDIAN DAIRY INDUSTRY
- INDIAN DAIRY INDUSTRY RESTS ON FOUR PILLARS
- KEY FACTORS DRIVING CONSUMPTION:
- EMERGING VALUE-ADDED CATEGORIES
- AVERAGE EBITDA MARGIN FOR THE VALUE ADDED PRODUCTS ACROSS CATEGORIES.
- COMPETITIVE LANDSCAPE
- BELOW CHART DEPICTS VAP CONTRIBUTION AND PBILDT MARGIN FOR LISTED DAIRY PLAYERS IN FY16:
- CHANNEL MIX: B2B VIS-Á-VIS B2C
- OPPORTUNITIES IN INDIAN DAIRY INDUSTRY
- GOVERNMENT INITIATIVES
- LIMITATIONS OF INDIAN DAIRY INDUSTRY
- 1. DOMINANCE OF UNORGANIZED SECTOR
- 2. PER CAPITA MILK CONSUMPTION
- 3. REGIONAL PLAY
- 4. WEATHER CONDITIONS AND ENVIRONMENTAL FACTORS 32
- CREDIT PROFILE OF THE DAIRY COMPANIES RATED BY CARE
- THE FOLLOWING CHARTS DEPICT THE IMPROVEMENT IN KEY RATIOS IN THE DAIRY SECTOR
- REVENUES AND MARGINS:
- CAPITAL STRUCTURE:
- OPERATING CYCLE:
- INDUSTRY/ CREDIT OUTLOOK
- CREDIT OUTLOOK
- MARKET SURVEY
- CONSUMPTION:
- PROCESSING
- TRADE:
- EXPORTS
- IMPORTS
- POLICY:
- TRADE POLICY
- TABLE. INDIA: TARIFF STRUCTURE FOR VARIOUS DAIRY PRODUCTS, 2017
- PRODUCTION, SUPPLY AND DEMAND DATA STATISTICS:
- TABLE. INDIA: COMMODITY, DAIRY, BUTTER, PSD
- TABLE. INDIA: COMMODITY, DAIRY, MILK, FLUID, PSD
- TABLE. INDIA: COMMODITY, DAIRY, MILK, NONFAT DRY, PSD
- DAIRY SECTOR GROWTH
- URBANIZATION IMPACT
- PRODUCTS
- PACKAGING
- INDIAN DAIRY INDUSTRY TILL 2020
- TRACKING THE PROGRESS
- OVERVIEW OF MILK IN ANDHRA PRADESH
- PRODUCTION OF MILK IN ANDHRA PRADESH
- ESTIMATED MILK PRODUCTION (DISTRICT WISE)
- SWOT ANALYSIS OF INDIAN DAIRY INDUSTRY
- STRENGTHS:
- WEAKNESSES:
- OPPORTUNITIES:
- THREATS:
- MILK PROCESSING AND MILK PRODUCTS
- PASTEURIZATION
- METHODS OF PASTEURIZATION
- CREAM SEPARATION
- WHAT IS CENTRIFUGAL SEPARATION?
- EFFECT OF TEMPERATURE
- MAINTENANCE OF CREAM SEPARATOR
- CREAM SCREW ADJUSTMENT
- CLEANING
- OILING
- MILK STANDARDIZATION
- PREPARATION OF BUTTER
- EQUIPMENT REQUIRED FOR BUTTER CHURNING
- PROCEDURE
- BUYING AND COLLECTION OF MILK
- A. BUYING
- B. COLLECTION
- CHILLING AND TRANSPORTATION OF MILK TO PROCESSING STATION
- TRANSPORTATION:
- MANUFACTURERS AND EXPORTERS OF DAIRY/MILK PRODUCTS
- MANUFACTURING PROCESS
- COOLING AND STORING MILK:
- FILTRATION:
- STANDARDIZATION:
- HOMOGENIZATION:
- CLARIFICATION:
- PASTEURIZATION:
- TESTING:
- DISTRIBUTION:
- FLOW DIAGRAM
- MANUFACTURING PROCESS
- GHEE MANUFACTURING PROCESS
- COOLING
- PACKAGING.
- BUTTER MANUFACTURE PROCESS
- PANEER MANUFACTURING PROCESS
- STEP IN PROCESSING:
- COMPOSITION
- FLOW SHEET FOR MANUFACTURE OF BUTTER FROM MILK
- FLOW DIAGRAM FOR GHEE
- MANUFACTURING PROCESS OF KHOA
- THE MAJOR DISADVANTAGES WITH THE CONVENTIONAL METHOD.
- PROCESS
- YOGHURT FROM MILK
- PROCESSING:-
- PROCEDURE FOR THE MANUFACTURE & QUALITY EVALUATION OF PLAIN/SWEETENED/FRUIT YOGHURT
- PLANT LAYOUT
- COMPLETE PLANT & MACHINERY SUPPLIERS FOR DAIRY PRODUCTS
- FILLING AND SEALING MACHINE
- RAW MATERIALS SUPPLIERS
- GUAR GUM
- FLAVOURS/COLOURS/PRESERVATIVES/ESSENCE & EMULSIONS
- AVERAGE YIELD OF MILK PRODUCTS FROM 1 KGS. OF MILK
Appendix
- APPENDIX – A:
- 01. PLANT ECONOMICS
- 02. LAND & BUILDING
- 03. PLANT AND MACHINERY
- 04. OTHER FIXED ASSESTS
- 05. FIXED CAPITAL
- 06. RAW MATERIAL
- 07. SALARY AND WAGES
- 08. UTILITIES AND OVERHEADS
- 09. TOTAL WORKING CAPITAL
- 10. TOTAL CAPITAL INVESTMENT
- 11. COST OF PRODUCTION
- 12. TURN OVER/ANNUM
- 13. BREAK EVEN POINT
- 14. RESOURCES FOR FINANCE
- 15. INSTALMENT PAYABLE IN 5 YEARS
- 16. DEPRECIATION CHART FOR 5 YEARS
- 17. PROFIT ANALYSIS FOR 5 YEARS
- 18. PROJECTED BALANCE SHEET FOR (5 YEARS)
Frequently Asked Questions
The dairy processing industry in India offers significant scope because milk is a widely consumed and highly nutritious food. The report highlights strong growth in milk production and increasing quantities handled by the organized sector. Urbanization, rising purchasing power, health awareness and changing consumption preferences are supporting demand for convenient and value-added dairy products. This creates opportunities for processing, product diversification, quality assurance and improved dairy technologies across products such as milk, butter, ghee, paneer and yoghurt.
Value-added dairy products are becoming important because consumers increasingly seek convenient, nutritious and quality-assured food products. The report identifies urbanization, greater health awareness and rising purchasing power as key factors changing dairy consumption patterns. Processing milk into products such as butter, ghee, paneer and yoghurt can provide greater product diversity and meet different consumer requirements. Value addition also encourages improvements in processing technology, packaging, quality control and distribution throughout the dairy value chain.
The main steps in milk processing include receiving and chilling the milk, filtration, standardization, homogenization, clarification, pasteurization, testing and distribution. Each stage contributes to product quality and safety. Chilling helps control deterioration before processing, while filtration and clarification remove unwanted matter. Standardization adjusts milk composition as required for the intended product, and homogenization helps distribute fat uniformly. Pasteurization uses controlled heat treatment to improve microbiological safety while maintaining the desired characteristics of the milk.
Milk can be processed into a wide range of dairy products, including butter, ghee, paneer, khoa and yoghurt. The report also covers milk processing, cream separation, milk standardization and product-specific manufacturing processes. The choice of products depends on available milk supply, processing capabilities, market demand, quality requirements and distribution arrangements. A diversified product portfolio can help dairy processors serve different consumer segments and increase the scope for value addition.
Milk chilling is important because it helps slow microbial growth and preserve milk quality between collection and processing. Fresh milk is a perishable raw material and requires appropriate temperature control during collection, transportation and storage. Effective chilling therefore forms an important part of a dairy processing system. The report specifically addresses chilling and transportation of milk to the processing station, along with cooling and storage as stages within the overall manufacturing process.
The report identifies the dominance of the unorganized sector, differences in per capita milk consumption, regional market characteristics and weather and environmental conditions among the major limitations of the Indian dairy industry. These factors can influence milk procurement, processing, supply chains and market development. Strengthening organized processing, improving technology and infrastructure, maintaining quality standards and developing human resources can help the sector respond more effectively to changing consumer requirements and opportunities for value-added dairy products.
Pasteurization is a controlled heat-treatment process used to improve the microbiological safety of milk while retaining its intended quality characteristics. It is an important stage in commercial dairy processing and is included in the report's milk manufacturing process. Proper pasteurization requires controlled processing conditions and suitable equipment, followed by appropriate cooling and handling. The report also discusses different methods of pasteurization, demonstrating its importance within an integrated milk processing and quality management system.
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