YOGHURT

INTRODUCTION:
Yoghurt is one of the most popular fermented dairy products for its wide variety of flavours
and fruits that are added to it. Different forms of yoghurt are available in the market like stirred, set,
frozen and liquid yoghurt. Yogurt is a low fat, calcium-rich food with “active cultures”. Yogurt can
pump up your immunity, regulate your digestive health, nourish your memory, lower your cholesterol,
maintain your muscles, boost your fiber intake, strengthen your bones, help you lose weight, and
make you happy. Yogurt has become prune juice, bran, and chicken soup, all rolled into one.

OBJECTIVE:
The primary objective of the model report is to facilitate the entrepreneurs in understanding
the importance of setting up unit of yoghurt plant. This model report will serve as guidance to the
entrepreneurs on starting up such a new project and basic technical knowledge for setting up such
a facility.

RAW MATERIAL AVAILABILITY:

The main raw material is milk and easily available across India.

SUITABLE LOCATION:
Yoghurt can be manufactured at any location which is near to the market.

MARKET OPPORTUNITIES:
Milk is one of the essential items of daily life in our country and it is more so as the majority
of Indians are vegetarians and thus milk products are an indispensable necessity. Frozen yoghurt
players have up their ante to increase penetration in the Indian market. As a part of their strategy,
makers have chosen to either slash price points, offer smaller affordable portions, or value meals for
families, while global players have come up with flavours that entice Indian taste bud. Indian brand
Cocoberry, one of the earlier entrants in the frozen yoghurt space in the country back in 2009, has
given an advantage compared to the newer entrants, it has managed to generate significant volumes
already. Yoghurt market in India is still at a nascent stage, and as more and more companies enter
the space, the market will expand exponentially in the coming years.

MANUFACTURING PROCESS:

The raw milk or the skim milk is taken in a well cleaned vessel as per pre-determined recipe
dissolved. The addition of skim milk powder will improve the firmness of yoghurt. The mixture is
boiled for about 5 minutes and cooled down to lukewarm temperature of about 45°C and then added
yoghurt culture. In case fruit pulp such as orange, banana or apple etc. are to be added, the same
may be added at this stage along with extra flavour if necessary as per taste and choice. Mix the
whole content very well and distribute it in small containers of desired size. Keep the whole lots or
small containers at a warm place at temperature ranging 42-- 50°C. When it gets completely curdled
remove it from warm place, which will generally take 3-4 Hrs. The temperature should not be kept
below 40°C otherwise no firm curd will be obtained. Once the curd is set, transfer it to a cool place
preferably a refrigerator. It is now ready for consumption.
 Flow Chart of Yoghurt

Receiving whole/defatted milk

Addition of skim milk powder & cream (SNF 8%, Fat 4%)

Pre-heating the mix (600C)

Homogenization (2500 psi)

Addition of Sugar

Pasteurization (85 0C / 30 min)

Cooling (43 0C – 44 0C)

Inoculation (2% starter)

Packaging

Incubation (41 0C - 42 0C/ 3Hr)

Cooling & Storage (5 0C – 70C)

CAPACITY OF THE PROJECT:

• The total capacity of the unit is to be produced 48 MT Yoghurt per year.

PRODUCTION TARGETS (PER ANNUM):

• The scheme is worked out per shift (8 Hour) basis and 300 working days per annum.
• Assume there’ll be 70% production in first year.
• Quantity: 33.60 MT Yoghurt per year or 2.80 MT per month.
 PROJECT COMPONENT AND COST:

FINANCIAL ASPECTS:-

APPLICATION OF FUNDS SOURCE OF FUND

Particular Amount Particular Amount

Own Capital 1,345,753.35

Land & Building : 300 sq. meter covered area on rent
Loan from Banks 2,688,375.00
Loan for Working
Plant & Machinery 3,514,500.00 371,485.05
Capital
Office Equipment & Furniture 70,000.00
Working Capital 796,113.40
Pre-Operative Expenses 25,000.00

Total 4,405,613.40 Total 4,405,613.40

FIXED ASSETS
(1) Land And Building: Value (Rs.)
Land & Building: 300 sq. meter covered area on rent 240,000 per
annum

(2) Machinery And Equipment:

S. N. Description (Name of machine with specification) Qty. Rate Value (Rs.)

Production Unit
i Storage Tank: 100 L 2 35,000.00 70,000.00
ii Weighing Scale 1 50,000.00 50,000.00
iii Blending Tank: 200 L 1 75,000.00 75,000.00
iv Homogenizer: 500 LPH 1 400,000.00 400,000.00
v Pasteurization Plant: 500 LPH 1 750,000.00 750,000.00
vi Chiller 1 275,000.00 275,000.00
vii Pump 2 40,000.00 80,000.00
viii Storage Tank: 200 L 1 45,000.00 45,000.00
ix Incubation Room 1 200,000.00 200,000.00
x Cup Filling Machine 1 350,000.00 350,000.00
xi Freezer 1 100,000.00 100,000.00
xii Boiler: 200 Kg/Hr 1 400,000.00 400,000.00
xiii DG Set: Cap 30 KVA 1 300,000.00 300,000.00
xiv Miscellaneous Equipments - - 100,000.00

Total Cost of Machinery & Equipments - 3,195,000.00

Electrification & Installation Charges @ 10% - 319,500.00

Total Cost of Production Unit - 3,514,500.00

Furniture & Fixtures - 70,000.00

 (3) Pre-Operative Expenses: - 25,000.00

Total Fixed Capital ( 2+3) - 3,539,500.00

SALES TURNOVER PER MONTH

Qty. Rate Value

Description
(Packet) (Rs/packet) (Rs.)

Yoghurt: Cups (100 gm.) 28,000.00 18.00 504,000.00

Total 504,000.00

RAW MATERIAL REQUIREMENT & STOCK

Raw Material (per month):

Qty. Rate
Description with specification Value (Rs.)
(Packet) (Rs/packet)

Milk 2,324.00 29.00 67,396.00

Skimmed Milk Powder 280.00 220.00 61,600.00
Sugar 56.00 35.00 1,960.00
Miscellaneous (Stabiliser, Fruit & Flavour,
- - 20,000.00
Bacterial Culture)

Total 150,956.00

ANNUAL CONSUMPTION

Milk Rs 808,752.00
Skimmed Milk Powder Rs 739,200.00
Sugar Rs 23,520.00
Miscellaneous (Stabiliser, Fruit & Flavour,
Rs 240,000.00
Bacterial Culture)

Total 1,811,472.00

Stock of Raw Material 30 Days 148,888.11

Stock of WIP 02 Days 4,431.52

Purchase Cost of Raw Material Rs 1,964,791.63

 WORKING CAPITAL REQUIREMENT

Particulars Days Year' 1

Raw Material 30 148,888.11

Work in Process 2 4,431.52

Finished Goods 10 102,526.41

Receivables 30 504,000.00

Advance/Security 200,000.00

Total 959,846.04

Less: Creditors 30 163,732.64

Net Current Assets 796,113.40

Paid Stock 92,113.40

75% of Paid Stock 69,085.05
60% of Book Debts 302,400.00
Bank Limits 371,485.05

Margin for Working Capital 424,628.35

SELLING & ADMINISTRATION

STAFF AND LABOUR EXPENSES
EXPENSES

Total
S.
Particular Year I Description No. Salary Salaries-
No.
Year I

i Postage 18,000.00 (a) Administrative & Supervisory

Commission on Production Incharge

ii 60,000.00 i 1 15,000.00 180,000.00
sales cum accountant
iii Office Expenses 24,000.00 ii Salesman 1 8,000.00 96,000.00
iv Tour & Travel 18,000.00
Printing &
v 20,000.00 Total Salaries 276,000.00
Stationary
vi Advertisement 60,000.00
vii Telephone 20,000.00
Repair &
viii 22,000.00 (b) Technical Skilled & Unskilled
Maintenance
ix Conveyance 27,000.00
x Sales expenses 36,000.00 i Skilled Worker 1 10,000.00 120,000.00
xi Insurance 20,000.00 ii Semi Skilled Worker 1 8,000.00 96,000.00
xii Misc. Expenses 20,744.00 iii Helper 1 5,000.00 60,000.00
Total Wages 276,000.00

Total 345744.00 Grand Total 552,000.00

 MANUFACTURING AND PROFIT & LOSS
BALANCE SHEET
ACCOUNT

Particulars Year' 1 Particulars Year' 1

Liabilities:
Sales Value of Yoghurt 6,048,000.00
Capital 1,345,753.35
Cost of Production:
Raw Material Consumed: Reserve & Surplus 616,956.37
Opening Stock -
Add: Purchases 1,964,791.63 Secured Loan:
1,964,791.63 Term Loan 2,150,700.00
Less: Closing Stock 148,888.11
Raw Material Consumption 1,815,903.52 Unsecured loan:
Add: Op Stock of WIP -
1,815,903.52 Current Liabilities:
Less: Cl Stock of WIP 4,431.52 Bank Borrowings 371,485.05
1,811,472.00 Sundry Creditors 163,732.64
Power & Fuel 600,000.00 4,648,627.41
Manufacturing Wages 276,000.00
Bonus & Incentives 16,560.00 Assets:
Packaging Materials 362,880.00 Fixed Assets:
Rent 240,000.00 Gross Block: 3,584,500.00
Raw material storage & ins.
13,800.00 Less: Depreciation 358,450.00
Cost
Carriage inward 11,788.75 3,226,050.00
Depreciation 358,450.00
Current Assets:
Total Cost of Production 3,690,950.75 Inventories 255,846.04
Add: Op. Stock of Finish. Goods - Receivables 504,000.00
3,690,950.75 Advance/Security 200,000.00
Less: Cls. Stock of F. Goods 102,526.41 Cash & Bank Balance 442,731.37
Cost of Sales 3,588,424.34
Preliminary Expenses 20,000.00
Gross Profit 2,459,575.66
0.41 4,648,627.41
Selling & Admin Cost:
Expenses 345,744.00 Difference 0.00
Salary 276,000.00

Financial Expenses:
Interest on Term Loan 317,452.28
Interest on W. Capital 46,435.63

Pre. Expenses 5,000.00

Profit Before Taxation 1,468,943.75

Taxation 440,683.12

Net Profit After Taxation 1,028,260.62

Cash withdrawal 411,304.25

Transfer to Reserves 616,956.37
Cumulative Reserves 616,956.37
% of PBT on Sales 24.29
 RATIO ANALYSIS BREAK EVEN ANALYSIS

Particulars Year' 1 Fixed Cost

Net Profit ratio Rent 240,000.00

Interest on
NP*100/Total sales 17.00 317,452.28
Borrowing
40% of Salaries 110,400.00
Rate of Return 40% of Utilities 240,000.00
NP*100/Total Investment 23.34 25% of Admin Exp 86,436.00
Depreciation 358,450.00
-
Total 1,352,738.28

Break Even Point Fixed Cost * 100

Fixed Cost + Profit

56.81

ADDRFESS OF MACHINERY & EQUIPMENT SUPPLIERS:

• M/s Bajaj Processpack Maschinen Pvt. Ltd., 7/27, Jai Lakshmi Industrial Estate, Sahibabad
Industrial Area, Sahibabad, Dist. Ghaziabad (U.P.) - 201301.

• M/s Jaya Industries, No. 543, Jessore Road, Kolkata - 700 028, West Bengal, India.

• M/s Food & Biotech Engineers (I) Pvt. Ltd., Chaprola Road, Prithla, Tehsil- Palwal Distt. - Palwal,
Pin: 121102 Haryana (India).

• M/s Filtron Engineers Ltd., 6, Sitabaug Colony, Sinhagad Road, Pune – 411030 (Mahaeashtra).

• M/s Eskimo Refrigeration Industries, S. No. 85/1, Shree Shankar Nagar, B-Building, Ground Floor,
Poud Road, Kothrud, Pune - 411038, Maharashtra, India.

• M/s Om Metals & Engineers, S. No. 5, Ekata Hsg. Society, Bapujibuwa Nagar, Thergaon, Pune -
411 033, Maharashtra, India.