Coffee Flavoured Milk
Uploaded on : June 2019
Introduction
Coffee beverage imparts refreshing and stimulating effect and is extremely popular throughout the world. Almost entire consumption of coffee is in the form of beverages, with or without milk or cream, chilled or hot. Though the consumption of coffee is increasing dayby-day in the country, no attempt has so far been made to commercialize a ready-to serve coffee beverage on a large scale except limited efforts made by a few co-operative milk marketing societies in some States. The nonavailability of the cost of manufacture of this product appears to be one of the main reasons that the food industry has not taken up its production in organized way. This profile highlights the cost of manufacture for ready to serve coffee flavoured milk drink.
Market Potential
The availability of coffee flavoured milk in the market compared to its potential demand, is very small in volume. As the nutritional awareness has caught on among the consumers, the demand for such drinks is increasing. It is equally liked by all irrespective of age. It could register good sale at airports, bus stops, railway stations, restaurants, hotels, picnic spots, college canteens, etc. Hence the availability of market would not be a big challenge for such nutritional products.
Basis and Presumptions
• The scheme is based on 75% efficiency, 24 hrs. a day for 300 days a year.
• Time period required to achieve full capacity utilization is possibily 4-5 years.
• Labour wages is as per the rates prevailing in the area.
• Interest rate for total capital investment has been taken @14% per annum for both fixed and working capital.
• Margin money is 25% of total capital investment.
• Pay back period of the project is 7 years.
• Land cost and construction cost have been taken @ Rs. 10/sq ft. and Rs 300/sq. ft. respectively.
Implementation Schedule
• SSI Registration 1 Week
• Acquisition of land 1 Month
• Preparation of Project report 1 Month
• Financial assistance 3 Months (From State Financial Corporation, Bank)
• Building construction 3 Months
• Arrangement of power 1 Month
• Acquisition of machinery 2 Months
• Installation of Machinery 1 Month
• Appointment of Staff 15 Days and labour
• Trial production and 15 Days trouble shooting
• Commercial production 1 week
• Total time for the commencement of commercial production 1 Year
Technical Aspects
Process of Manufacture
The fresh cow and buffalo milk received is first standardized to its fat content. The milk is then heated to 40ºC and filtered through a double muslin cloth. Then again heated to 60ºC and stabilizers like TSC and DSHP added @ 0.002%. This milk is then passed to homogeniser for breaking the fat globules and make uniformity in the product. On the other side, the coffee powder of 5% concentration is added to hot water and filtered through a muslin cloth. Finally homogenized milk, hot coffee water and sugar syrup are mixed in proper proportion and heated to 85ºC and then sterilized at 115ºC for 30 minutes. The sterilized bottles are cooled at room temperature and then stored in wooden crates.
Quality Control and Standards
As per PFA Regulations.
Production Capacity (per annum)
• Quantity : 4,65,000 (crates of 24 bottles (200 ml)
• Value : Rs. 418.5 Lakhs.
• Motive Power 80 HP
Pollution Control
As per the State Govt. Pollution Control Board. Energy Conservation Proper insulation may be done to avoid heat loss in heating equipments.
Financial Aspects
Fixed Capital
Land and Building |
Amount (In Rs.) |
Land: 10,000 Sq. ft. @ Rs10/Sq. ft. |
1,00,000 |
Building: Production Hall 40' × 50' = 2,000 Sq. ft. |
|
Store (R.M) 30' × 30' = 900 Sq. ft. |
|
Store (F.P) 30' × 30' = 900 Sq. ft. |
|
Laboratory 10' × 15' = 150 Sq. ft. |
|
Office 10' × 15' = 150 Sq. ft. |
|
W.C and Bath 10' × 5' = 50 Sq. ft. |
|
4,150 Sq. ft. @ Rs. 300 per Sq. ft. |
|
Total |
13,45,000 |
Machinery and Equipments
Sl. No. |
Particulars |
Qty. |
Rate (In Rs.) |
Total (In Rs.) |
1. |
Water Treatment unit |
1 No. |
50,000 |
50,000 |
2. |
Boiler |
1 No. |
1,25,000 |
1,25,000 |
3. |
S.S. Tank 1000 lts Cap |
3 Nos |
20,000 |
60,000 |
4. |
Plate heat exchanger |
1 Set |
50,000 |
50,000 |
5. |
Homogeniser (2000 ltrs/ Hr Cap.) |
1 No. |
1,50,000 |
1,50,000 |
6. |
Bottling Plant (including bottle washer, filter, crown corking m/c and sterilizer of 100 Bottle/min) |
1 set. |
12,00,000 |
12,00,000 |
7. |
Testing equipment |
– |
50,000 |
50,000 |
8. |
Weighing balance |
1 No. |
5,000 |
5,000 |
Total |
16,90,000 |
|||
Erection and Electrification @ 10% |
1,69,000 |
|||
Glass bottle in wooden, 8000 crates @ Rs.90 per crate crates |
7,20,000 |
|||
Cost of office equipment, tables, etc. |
30,000 |
|||
Total |
26,09,000 |
|||
Pre-operative Expenses |
30,000 |
|||
Total Fixed Capital |
Amount (In Rs.) |
Land and Building |
13,45,000 |
Machinery and Equipments |
26,09,000 |
Pre-operative Expenses |
30,000 |
Total |
39,84,000 |
Financial Analysis
Cost of Production (per annum) |
Amount (In Rs.) |
Recurring expenses |
3,52,12,200 |
Depreciation on building @ 5% |
62,250 |
Depreciation on machinery @ 10% |
1,88,900 |
Depreciation on bottles @ 20% |
1,44,000 |
Interest on total capital investment @ 14% |
13,79,378 |
Total |
3,69,86,728 |
Turn over (per annum)
Item |
Qty. |
Rate (In Rs.) |
Total (In Rs.) |
Coffee flavoured milk in 200ml. |
4,65,000 crates of Bottle 24 bottles |
90/ Crate |
4,18,50,000 |
• Net Profit (per annum) Turnover – Cost of Production Rs. 4,18,50,000 – Rs. 3,69,87,000 = Rs. 48,63,000
• Net Profit Ratio = Net Profit (p.a.) ×100 Turnover (p.a.) = 48,63,000 × 100 4,18,50,000 = 11.6%
• Rate of Return on Total Capital Investment = Net Profit (p.a.) × 100 Total Investment = 48,63,000 × 100 98,52,700 = 49.3%
Break-even Point
B.E.P = Annual Fixed Cost × 100 Annual Fixed Cost + Annual Net Profit
Annual Fixed Cost |
Amount (In Rs.) |
40% Salaries |
2,04,000 |
40% Utilities |
1,34,400 |
40% Contingencies |
1,83,360 |
Total Depreciation |
3,95,150 |
Total Interest |
13,79,378 |
Total |
22,96,288 |
B.E.P= 22.96 × 100 22.96 + 48.63 = 32%
Addresses of Machinery Suppliers
• M/s. Mistri Sant Singh and Sons 3794, Mori Gate, Delhi-110006
• M/s. Mildon and Co. Plot No. 101, Road No. B-16 MCD Chakala, Andheri, Mumbai-93.
• M/s. Larsen and Toubro Ltd. Ballard Estate, Douggel Road, Mumbai-110001 COFFEE FL AVOURED MILK 39
• M/s. Pioneer Mechanical Works G.T. Road, Ambala, Punjab.
• M/s. Rita Agencies No. 3, 1st Crescent Road, Park Road, Gandhi Nagar, Chennai-20.
• M/s. SSP Pvt Ltd. 19 DLF, Industrial Area-II COFFEE FL AVOURED MILK 13/4, Mathura Road, Faridabad-121003
• M/s. B.Sen Barry and Co. 65/11, New Rohtak Road, New Delhi-110005, E-mail: senbarry @ vsnl. Com
Source:
Ministry of Micro, Small & Medium Enterprises
Government of India
Nirman Bhavan, New Delhi - 110011
Contact for more information
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
