MILK PROCESSING BUSINESS IN INDIA

1. MILK PROCESSING BUSINESS IN INDIA www.aatmnirbharsena.org

2. INTRODUCTION Milk may be termed as the whole, fresh, lacteal secretion obtained by the complete milking of healthy animals. It is one of the most popular and in-demand products in India because of its nutritional value. India is the world's largest consumer and producer of milk around the globe. In India, milk is not only the morning glass you drink before you walk out of the house. It’s used for dietary and nutritional purposes. Besides being used in its original form, it is utilized in many other ways. Milk is a valuable nutritious product that has a concise life and requires careful handling. Milk is a highly perishable item because it is an excellent medium for the growth of microorganisms that can cause spoilage in consumers www.aatmnirbharsena.org

3. MILK PROCESSING Milk processing allows milk preservation for months and helps to reduce food-borne illness. India is known to be world's major producers and consumers of milk. It contributes to almost 9.5%of global milk production. Processing of milk gives small-scale dairy business entrepreneurs higher incomes than selling raw milk and offers immense opportunities to reach regional & urban markets. Milk processing can also aid to deal with seasonal fluctuations in the milk supply. The process of transforming raw milk into processed milk and products can bring benefits to the entire community by generating off-farm jobs in milk collection, transportation, processing, and marketing. www.aatmnirbharsena.org

4. MARKET POTENTIAL The milk processing business will rise at an overall compound annual growth rate (CAGR) of 20.5% in India and will be worth USD 53.17 billion by 2020. Along with the feature of offering profitable business opportunities, the milk processing industry in India serves as a tool of socio-economic development. On the other hand, private participation in the milk processing industry has also increased over the past few years. Both national and international companies are entering the dairy industry, attracted by the market's size and potential. The focus is on a value-added product such as butter, cheese, yogurt, probiotic drinks, etc. They are also trying to introduce innovative products keeping in mind the requirements of the Indian consumers. The factors contributing immensely to the milk processing industry's growth are increasing population, health consciousness among the consumers, government initiatives, etc. www.aatmnirbharsena.org

5. PRODUCTS OUT OF PROCESSED MILK Products made out of processed milk include: • Cheese • Butter • Yoghurt • Curd • Flavored Milk • Ghee • Ice-cream • Cream • Cottage cheese, etc. www.aatmnirbharsena.org

6. TECHNICAL ASPECTS • Business plan-Entrepreneurs should focus on the critical section of preparing a layout plan before starting a business. The program helps prepare the company for any unseen events and prepares them to accomplish their goals in a cost and time-efficient manner. In any case, the dairy business needs to be given a proper execution of the business plan to achieve their targets. The efficiency and production of milk processing depend upon the business plan. Negligence in terms of ethical business plan in the sector would risk the business operations and many lives. Hence, starting from essential permits and licenses and registration of the business, every small detail should be taken care. www.aatmnirbharsena.org

7. Land & Location- Ample space area for buildings, future business expansion, parking lot, empty cans, and manufacturing area is required. About two acres of land is needed for milk processing, handling around ten thousand milk liters per day. The plant's location should be closer to the milk-producing area in a product manufacturing unit. The site's location should have proximity to road or rail facilities, services, such as water, electricity and raw materials, social infrastructure, etc. Proper drainage arrangement is a must. The unit can either be an owned one or taken on rent. • Registration-Registration of the milk processing business with the registrar of firms or ROC is a must depending upon the type/form of business you choose. You can either get it registered as a sole proprietorship or any other form of the company depending upon the business organization's capital infused and budget. You can also choose the appropriate name for the manufacturing unit and can get it registered in that name. www.aatmnirbharsena.org

8. Necessary Permits & Licenses- • Trade license • CSA registration • GST registration • MSME registration • FSSAI food license • BIS standards • Special permission from PCB. • Insurance Maintaining the food quality standards to ensure safety and providing satisfaction to every consumer is every Food/beverage business entrepreneur's aim. India's food safety and standards authority (FSSAI Registration) plays an essential role in formulating and maintaining the procedures. FSSAI ensures that all the safety standards complied before floating the products in the market. www.aatmnirbharsena.org

9. Financial Assistance Financing to food processing/milk processing falls under priority sector lending. The loans to these units meeting the criteria of MSME are classified under the MSME sector. Milk processing units can be financed by any scheduled commercial banks, Regional Rural Banks, and Cooperative Banks. Important terms and conditions of financing need to be discussed in detail while borrowing money from these institutions. The promoters of these units can approach any financing bank for finance. It is mandatory to take a bank loan to avail of various schemes/regulations of government. Therefore, the entrepreneurs who are desirous of availing subsidy should also adhere to the means of finance, which is the quantum of bank loan & margin under the specific scheme. www.aatmnirbharsena.org

10. Plants & Machineries PLANT & MACHINERIES • Process section • Reception Section • Storage and packing section • Refrigeration section UTILITIES • Power • Water • Steam • Fuel • Compresses Air • Vehicles Raw Materials- Basic Raw material is milk that has to go through various processes to have it in the product's desired form. Along with a few salt and sugar shall also be used as per the industry’s requirement. . www.aatmnirbharsena.org

11. The Capital Cost of the Project- The capital cost includes the cost of land, development of land, fencing, internal roads, civil works (Plant building, office, quarters etc.), plant and machinery, preliminary and preoperative expenses, margin money for working capital, etc. www.aatmnirbharsena.org

12. MANUFACTURING PROCESS www.aatmnirbharsena.org

13. Marketing There is an immense number of ways by which you may sell your milk processed products. You may choose to put it on an e-commerce website or sell it directly in the stores. However, in the current scenario, most of these entrepreneurs are opting for online portals for selling their products like Grofers, BigBasket, Amazon pantry, milk basket, etc. Listing your products in these portals is an efficient way to sell your products. You may also sell it to dairy booths, stores, agencies, etc. www.aatmnirbharsena.org

14. GOVERNMENT SCHEMES • DEDS scheme- Under this scheme, individuals, cooperatives, NGOs setting up new farms are eligible. Additionally, even business entities intending on upgrading their existing infrastructure in the dairy industry are eligible for financial benefits under the scheme. • MUDRA scheme- Under this scheme, the agency was set up to refinance and develop micro units across the country. It extends funding to the non-corporate small business sector. • Aatmnirbhar Bharat Abhiyan- Under this scheme, free collateral loans are bestowed upon MSMEs to carry on business efficiently. • Coir Vikas Yojna- It encourages various activities like skill development, upgradation and modernization of industries, Promoting domestic and export market. www.aatmnirbharsena.org

15. Conclusion The milk processing business is one of the most promising industries in the current scenario. Milk and its products are one of the most preferred items around the globe. People are very fond of the milk in processed form and bring it into use in multiple ways. Apart from being in demand, it is also one of the most profitable businesses that assure the right profit margin if done feasibly. Hence, as an AatmnirbharSena, we encourage the young crowd to take the Milk processing business as their new venture. Keeping in mind the profitability and efficiency it shall hit today and always as the most demanding business sector www.aatmnirbharsena.org