PROJECT REPORT

1. INTRODUCTION
Agriculture along with animal husbandry has been and will continue to be the lifeline of
Indian economy. India has the highest livestock production with 50% of the buffaloes and 20%
of the worlds cattle population, most of which are milk cows and milk buffaloes. Indi a as
emerged as the largest milk producing country in the world with present level of annual
milk production estimated as 94.5 million tones . It is the most important sector of the Indian
economy particularly in poverty alleviation and employment generation. This sector contributes
close to one-fourth of Indias National income and total work force engaged in agriculture is
about 60 percent.
India is endowed with a largest livestock population in the world having a total bovine
population of 304 million compared to the world's total bovine population of 1400 million. It
accounts for 57.3% of the worlds buffalo population and 14.7% of the cattle population. As per
18thLivestock Census, 2007 the country has 33.06 million cross bred cattle, 199.07 million
indigenous cattle and105.34 million buffaloes. The cross bred cattle are predominant in Tamil
Nadu, Maharashtra, West Bengal, Karnataka, Andhra Pradesh, Uttar Pradesh and Bihar, While
buffaloes are very common in Uttar Pradesh, Rajasthan, AndhraPradesh, Madhya Pradesh,
Gujarat, Punjab, Haryana and Bihar.
Recent study shows that India is the largest producer of milk in the world which is nearly
10% of the world production. Various milk-based products which can be manufactured
commercially in a rural industry are Paneer (Cheese), Dhahi (Curd), Ghee etc. These products
can be manufactured by low cost traditional methods and machineries. This kind of industries
can be located in area where abundance quantity of milk is available. The cost of these products
would be considerably low compared to those of big companies. A good number of employment
generations is possible with low investment.
Recognizing the importance of the sector, several key initiatives were taken by the Govt.
in the past ranging from Operation Flood (OF) programme, Intensive Dairy Development
Programme (IDDP), Strengthening infrastructure for Clean Milk Production, Assistance to
Cooperatives, Venture Capital Fund (VCF) for Dairy, Dairy Entrepreneurship Development
Scheme etc.
In order to meet the rapidly growing demand for milk with a focus to improve milch
animal productivity and increase milk production, the Government has approved National Dairy
Plan Phase-I (NDP-I) in February, 2012 with a total investment of about Rs.2242 crore to be
implemented from 2011-12 to 2016-17. NDP-I will help to meet the projected national demand
of 150 million tons of milk by 2016-17 from domestic production through productivity
enhancement, strengthening and expanding village level infrastructure for milk procurement and
provide producers with greater access to markets. NDP-I would focus on 14 major milk
producing States - Uttar Pradesh, Punjab, Haryana, Gujarat, Rajasthan, Madhya Pradesh, Bihar,
West Bengal, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Orissa and Kerala which
account for over 90% of the countrys milk production. Coverage of NDP- I will however be
across the country in terms of benefits accruing from the scheme.

At global level, milk has been identified as an integral part of food for centuries. The
success of White Revolution in India has largely been written by millions of small holders.
About 70 million dairy farmers produce more than 50 per cent of the milk in the country. Milk
and milk products such as Curd, Flavored milk, Ghee, Butter, Paneer etc. are the important
components of the Indian food industry. Consumption of milk and milk products is deeply rooted
in our tradition and it is an essential item during rituals, festivals and other auspicious events.
Dairy products are commonly consumed in every household as they are highly nutritive
and farm fresh. In hot tropical climate like ours, they are nourishing, cooling and less expensive.
They also form an alternative to aerated and bottled soft-drinks.
Dairy farming is a profitable business. It provides an excellent opportunity for self
employment of unemployed youth. Dairying is an important source of subsidiary income to
small/marginal farmers and agricultural labourers. In addition to milk, the manure from animals
provides a good source of organic matter for improving soil fertility and crop yields. The gobar
gas from the dung is used as fuel for domestic purposes as also for running engines for drawing
water from well. The surplus fodder and agricultural by-products are gainfully utilised for
feeding the animals. Almost all draught power for farm operations and transportation is supplied
by bullocks. Since agriculture is mostly seasonal, there is a possibility of finding employment
throughout the year for many persons through dairy farming. Thus, dairy also provides
employment throughout the year. The main beneficiaries of dairy programmes are
small/marginal farmers and landless labourers.

Milk Procurement and Processing

The organized dairy sector (both cooperatives and private) is presently handles
about 15 per cent of total milk production in the country. Thus it indicates, there is
a wide scope for processing of milk and manufacture of milk products for domestic
consumption as well as export.
Export Performance
Dairy products form one of the fastest growing segments in the livestock product
export. India's Export of Dairy products was 159228.52 MT to the world for the
worth of Rs.3318.53 crores during the year 2013-14.The major export destinations
are Bangladesh, Egypt, UAE, Algeria, Yemen Republic, Pakistan, Saudi Arabia and
Malaysia. The major products exported were Butter & other milk fat, cheese,
Whole Milk Powder, Skimmed Milk Powder, fresh cream, ghee, butter milk etc.
Objectives of The Project
The financial assistance is extended for processing of milk with the following
objectives.
i)
ii)
iii)

To enhance the keeping quality of milk

To manufacture various milk products as per market demand
To provide quality products at affordable prices to the consumers.

Scope for Dairy Farming and its National Importance

India is endowed with the largest livestock population in the world. It accounts for about
57.3 per cent of the worlds buffalo population and 14.7 per cent of the cattle population. The
value of output of milk is Rs. 3,05,484 crore in 2011-12. The total milk production in the country
is 127.9 million tonnes per annum at the end of the Eleventh Plan (2011-12) and the demand is
expected to be 180 million tonnes by 2020. To achieve this demand annual growth rate in milk
production has to be increased from the present 2.5 % to 5%. The Annual growth rate for
production of milk is about 5% in 2011-12. Thus, there is a tremendous scope/potential for
increasing the milk production through profitable dairy farming.
The Bio-Data of the promoter is given below.

BIO DATA OF M.SWAPNA

(1) Name
(2) Fathers Name
(3) Age
(4) Qualification

: MENDRAPU SWAPNA
: Bheemaiah
: 29 Years
: Graduate

(5) Residential address

: H.No. 3480 MIG, Phase-2, Vidyut Nagar

Colony, D Park, BHEL, Ramachandrapuram,
Medak District -502032

(6) Experience

: She is engaged in Diary activity since last 2

years since it is the family business.

INFRASTRUCTURAL FACILITIES:

(a) LAND & BULIDING:

The unit is proposed at Sy. No.30/E1 and 31/A, 31/a Nyalkal Mirzapur Village, Nyalkal
Mandal, Medak District. The unit has entered into lease agreement of 20 years, which is
sufficient for present and future requirements. The unit is enjoying all the locational advantages
like power, water, transportation and easy availability of raw material nearby the location.
(b) Manpower: The unit requires following Man power:
Administrative /Clerical

1 No.

Workers

6 No. s

All the manpower is locally available and there is no problem of recruiting the manpower.
(c) Utilities:
I. POWER: 2KW Power Required.
ii. WATER: Water Facility is available.
iii. EFFLUENTS: It does not yield any effluents.
(d) SECURITY:
PRIMARY:
Hypothecation of proposed Plant & Machinery to be created out of the
term loan.
Collateral:
Requested to cover under Security Coverage of Credit Guarantee Trust for Small and
Micro Enterprises (CGTMSE).