Pre-Feasibility Study

MILK PASTEURIZING UNIT

Small and Medium Enterprise Development Authority

Government of Pakistan
www.smeda.org.pk
HEAD OFFICE 6 Floor LDA Plaza Egerton Road, Lahore Tel (042)111 111 456, Fax: (042) 36304926-7 helpdesk@smeda.org.pk
th

REGIONAL OFFICE PUNJAB 8th Floor LDA Plaza, Egerton Road, Lahore. Tel: (042) 111 111 456, Fax: (042) 36370474 helpdesk.punjab@smeda.org.pk

REGIONAL OFFICE SINDH 5TH Floor, Bahria Complex II, M.T. Khan Road, Karachi. Tel: (021) 111-111-456 Fax: (021) 35610572 helpdesk.sindh@smeda.org.pk

REGIONAL OFFICE KHYBER PAKTUNKHWA Ground Floor State Life Building The Mall, Peshawar. Tel: (091)111 111 456, 9213046-7 Fax: (091) 286908 helpdesk.NWFP@smeda.org.pk

REGIONAL OFFICE BALOCHISTAN Bungalow No. 15-A Chamn Housing Scheme Airport Road, Quetta. Tel: (081) 2831623, 2831702 Fax: (081) 2831922 helpdesk.balochistan@smeda.org.pk

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1 2 3 4

Executive Summary ............................................................................................................... 4 Introduction to SMEDA ........................................................................................................ 5 Purpose of the Document....................................................................................................... 5 Project Profile......................................................................................................................... 6
4.1 4.2 4.3 4.4 4.5 4.6 Project Brief ..................................................................................................................................... 6 Proposed Business Legal Status....................................................................................................... 6 Opportunity Rationale...................................................................................................................... 6 Proposed Milk Processing Capacity................................................................................................. 6 Product Mix...................................................................................................................................... 7 Process Flow Chart .......................................................................................................................... 7

5 6 7 8 9 10 11 12

Current Industry Structure .................................................................................................. 8 Marketing................................................................................................................................ 9 Raw Milk............................................................................................................................... 10 Manpower ............................................................................................................................. 10

8.1 9.1 Number of People Required........................................................................................................... 10 Plant and Machinery ...................................................................................................................... 11

Machinery Details ................................................................................................................ 11 Office Equipment ........................................................................................................... 12 Vehicles............................................................................................................................ 12 Land and Building.......................................................................................................... 13
Land and building Requirement ................................................................................................ 13 Recommended mode for acquiring Land .................................................................................. 13 Suitable Locations ..................................................................................................................... 13 Infrastructure Requirements ...................................................................................................... 13

12.1 12.2 12.3 12.4

13 14 15 16 17
17.1 17.2 17.3 17.4 17.5 17.6

Project Economics .......................................................................................................... 14 Regulations...................................................................................................................... 14 Key Success Factors ....................................................................................................... 14 Threats to the Business .................................................................................................. 14 Financial Analysis........................................................................................................... 15
Project Cost ............................................................................................................................... 15 Projected Sales Revenue............................................................................................................ 16 Cost of Sales.............................................................................................................................. 16 Projected Income Statement ...................................................................................................... 17 Projected Cash Flow Statement................................................................................................. 18 Projected Balance Sheet ............................................................................................................ 19

18 19

Key Assumptions ............................................................................................................ 20 Annexure ......................................................................................................................... 21

19.1 Machinery Suppliers.................................................................................................................. 21 19.2 Tax deduction income slabs ...................................................................................................... 22 19.3 Machinery specifications........................................................................................................... 22 19.3.1 SECTION 1 MILK RECEPTION..................................................................................... 22 19.3.2 SECTION 2 MIK PASTEURZING .................................................................................. 25 19.3.3 SECTION 3 MILK PASEURIZER................................................................................... 29 19.3.4 SECTION 4 MILK PACKAGING ................................................................................... 30 19.3.5 SECTION 5 SERVICE....................................................................................................... 31

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DISCLAIMER
The purpose and scope of this information memorandum is to introduce the subject matter and provide a general idea and information on the said area. All the material included in this document is based on data/information gathered from various sources and is based on certain assumptions. Although, due care and diligence has been taken to compile this document, the contained information may vary due to any change in any of the concerned factors, and the actual results may differ substantially from the presented information. SMEDA does not assume any liability for any financial or other loss resulting from this memorandum in consequence of undertaking this activity. Therefore, the content of this memorandum should not be relied upon for making any decision, investment or otherwise. The prospective user of this memorandum is encouraged to carry out his/her own due diligence and gather any information he/she considers necessary for making an informed decision. The content of the information memorandum does not bind SMEDA in any legal or other form.

DOCUMENT CONTROL
Document No. Revision Prepared by Issue Date Revision Date Issued by PREF-15 3 SMEDA-Punjab April, 2002 May , 2011 Library Officer

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1 EXECUTIVE SUMMARY
The project involves setting up a Milk Pasteurization unit in any big city of Pakistan. Milk pasteurization increases the shelf-life of milk by destroying certain pathogens found in milk. The process involves heating of milk to a specific temperature for a time period and then cooling it immediately. After completion of the pasteurization process milk will be packaged into 1-litre plastic pouches for distribution through various departmental stores in the city. The unit will be using modern automated machinery for all the processes, ensuring quality check through out the production process. Pakistan has one of the highest per capita milk and dairy products consumption rates in Asia (150-200 litters per year) and is the fourth largest milk producing country in the world with approximately 33 billion litres annual milk production. Higher milk yield is indeed a notable aspect of the milk sector. However, only 3-4% of the total milk is processed and marketed through formal channels whereas the remaining 97% of the milk reaches end users for immediate consumption through an extensive, multi-layered distribution system of middlemen. Given that the milk distribution operates mostly in informal sector and the demand for processed milk is increasing with the growing awareness among the public, this project has great potential. The total project cost for setting up this plant is estimated at Rs. 41.606 million. The project is financed through 50% debt and 50% equity. The project NPV is around Rs. 30.846 million, with an IRR of 35% and payback period of 3.77 years. The legal status of this business is proposed as Sole Proprietorship. The overall proposed processing capacity of the plant is 2,000 litres per hour. The plant will work in a single 8-hour shift and will operate at 50% capacity in the first year. The maximum capacity attained is 95% and the plant operates at this capacity sixth year onwards.

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2 INTRODUCTION TO SMEDA
The Small and Medium Enterprises Development Authority (SMEDA) was established with the objective to provide fresh impetus to the economy through the launch of an aggressive SME support program. Since its inception in October 1998, SMEDA adopted a sectoral SME development approach. A few priority sectors were selected on the criterion of SME presence. In depth research was conducted and comprehensive development plans were formulated after identification of impediments and retardants. The all-encompassing sectoral development strategy involved recommending changes in the regulatory environment by taking into consideration other important aspects including finance, marketing, technology and human resource development. SMEDA has so far successfully formulated strategies for industries such as horticulture, including export of fruits and vegetables, marble and granite, gems and jewellery, marine fisheries, leather and footwear, textiles, surgical instruments, transport, dairy etc. Whereas the task of SME development at a broader scale still requires more coverage and enhanced reach in terms of SMEDAs areas of operation. Along with the sectoral focus a broad spectrum of business development services is also offered to the SMEs by SMEDA. These services include identification of viable business opportunities for potential SME investors. In order to facilitate these investors, SMEDA provides business guidance through its help desk services as well as development of project specific documents. These documents consist of information required to make well-researched investment decisions. Pre-feasibility studies and business plan development are some of the services provided to enhance the capacity of individual SMEs to exploit viable business opportunities in a better way. This document is in the continuation of this effort to enable potential investors to make well-informed investment decisions.

3 PURPOSE OF THE DOCUMENT

The objective of this proposed Pre-feasibility is primarily to facilitate potential entrepreneurs with the investment information and provide an overview of a "Milk Pasteurizing Unit". The project pre-feasibility may form the basis of an important investment decision and in order to serve this objective, the document/study covers various aspects of project concept development, start-up, and marketing, finance and business management. The document also provides sectoral information which has some bearing on the project itself. The purpose of this document is to facilitate potential investors of the Milk Pasteurizing Unit by providing them a macro and micro view of the business with the hope that the information provided herein will aid the potential investors in crucial investment decisions. Our report is based on the information obtained by us from industry sources as well as our discussions with businessmen. For financial model, since the forecast/projections
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relate to the future periods, actual results are likely to differ because of the events and circumstances that dont occur as frequently as expected.

4 PROJECT PROFILE
4.1 Project Brief This project is about setting up a small scale milk pasteurization unit to process raw milk and market it under a brand name. Pasteurization is the process of heating the milk up to 70 80 C for a certain period of time and then cooling it to 4C. The heat treatment must guarantee the destruction of unwanted pathogenic micro-organisms and should not affect the taste & nutritional value of the milk. The commercial significance of pasteurizing milk is to increase the shelf life of milk up to 72 hours at cooling temperature. For pasteurized milk, a standard formula of 3.5% fat contents and 9% SNF (solids not fat) have to be maintained according to law. The fresh milk has 4 to 6% fats. The extra fat contents are removed through cream separator during milk processing. The extra cream can be sold to sweet makers. After cream separation, some milk powder is mixed and homogenized to make standardized milk of 3.5% fat and 9% SNF. The pasteurized milk will be filled in 1-litre plastic pillow-type pouches and sold at a number of departmental stores in the city. 4.2 Proposed Business Legal Status The business legal status of the proposed project can either be sole proprietorship or partnership. Additionally, it can also be registered under the Companies Ordinance, 1984 with the Securities & Exchange Commission of Pakistan. The selection depends upon the choice of the Entrepreneur. This Pre-feasibility assumes the legal status to be Sole Proprietorship. 4.3 Opportunity Rationale In Pakistan only 3-4% of the total milk is processed and marketed through formal channels whereas the remaining 97% of the milk reaches end users for immediate consumption through an extensive, multi-layered distribution system of middlemen. However the processed milk consumption is growing at the rate of 20% per year. Pasteurized and UHT milk in tetra packs are very popular products. The demand is increasing with the increasing awareness among the consumers. Also the mass sale of unhygienic, adulterated milk by Milkmen (Dhodies) is letting the urban low-income segment to shift from home delivered adulterated milk to self-purchased pasteurized milk from branded milk shops. 4.4 Proposed Milk Processing Capacity The milk pasteurization unit proposed has a maximum capacity to process 2,000 litres per hour. However, the unit will operate at 50% capacity processing 1,000 litres per hour in the first year and 8 hours is the milk processing time per day. The maximum operative
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capacity of 95% is achieved in the sixth year and 1,900 litres are processed per hour till the tenth year. 4.5 Product Mix The proposed project is assumed to have one SKU (shelf keeping unit) of 1 litre. The milk will be packaged in a 1 litre plastic pouch and sold at Rs. 63. 4.6 Process Flow Chart After the fresh milk is received it is filtered and pumped into the dump tank. It is then chilled with help of a chiller so that the growth of bacteria is minimized. On average, fresh milk contain 4.5% fats which will be reduced to 3.5% with the help of a cream separator. The milk will then undergo the pasteurization process. This is based on heating the milk to 75C and holding at that temperature for at least 15-20 seconds. Figure 4-1: Process Flow of Milk Processing Plant Milk Reception Lab Testing QA Approved milk

Rejection

Chilling 4 C

Cream Separator Cream Standardization

Homogenization

Distribution

Filling / Packing in Pouch Packs

Balance Tank

This heat treatment ensures the destruction of unwanted micro-organisms and all bacteria. During this process the temperature is reduced to 4C as at this temperature ideal growth of bacteria is stopped. After milk processing, the pasteurized milk is filled in the cooling tanks for delivery to urban milk distribution centres. Milk is also filled and sealed in plastic pouches of 1 litre and then are ready for distribution in market. After the
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pasteurization process is completed, the tanks will be cleansed through steam for sterilization.

5 CURRENT INDUSTRY STRUCTURE1

Pakistan with current estimates is the 4th largest milk producing country in the world with 33 billion litres of milk produced annually. The potential is huge but the sector operates mostly in the informal economy and needs a consistent effort to formalize and be able to contribute better to the national economy. Out of the total milk produced, 97% is in the informal sector (i.e. loose milk consumed in the villages and or sold in the cities through "Gawallas" in unhygienic conditions and without any quality standards). There are 8 Million farming households in Pakistan with a total herd size of 50 million animals. 97% of these farmers are not linked to formal markets and hence are not progressing in economic terms. Dairy farming practices are very old and traditional and need overhauling. The potential is there but needs technical support from the industry, strategic support from dairy experts, policy and infrastructure from the government and specific projects funding from the international donor agencies. The Figure 1-2 below shows Milk production and consumption figures from 2007-2010. Figure 5-1: Milk Production and Consumption in Pakistan2

The White Revolution Pakistan Dairy Development Corporation (http://www.pddc.com.pk/DairyPakistan-Publication.pdf) 2 Economic Survey of Pakistan 2009-2010 8 PREF-15/May, 2011/ Rev 3

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The potential is estimated on the basis of the fact that livestock and agriculture sector contributes over 10% to the GDP, and a milk economy that in value terms is 27.7% of the total agriculture sector. It is an untapped market, expected to grow an additional 3 billion litres in the next few years at a growth rate faster than most sectors.

6 MARKETING
Milk processing industry has shown a growing trend in the country during the last decade. Dairy plants have been established in various parts of the country. Majority of the milk processing plants have been installed around the major urban cities. The processors remain a key driver of the dairy industry with constant reinvestments and diversification of product portfolio. The processors have a small share of 3-4% of the total produced milk, whereas they invest the most and pay the highest taxes. The major dairies of the country, dealing in UHT milk, include Nestl, Nirala, Halla, Noon, Milac, and Premier, while other smaller ones have also emerged. Nestle is the biggest processing industry of the sector, collecting over 1000 tons of milk daily. This company intends to invest an additional US$ 480 million over a period of five years. Similarly Haleeb, Noon Dairy, HALLA (Idare-e- Kisan), Nirala Dairy and Premier Dairies are continuously investing to upgrade their plants. Milk pasteurization units, which include Gourmet in Lahore, A&A farm fresh milk, Prema milk, Halla, Prime, Nurpur dairies, Butt dairies are successfully running. Currently, pasteurized milk is being supplied in Lahore market at open milk centers. In Pakistan only 3-4% of the total milk is processed and marketed through formal channels whereas the remaining 97% of the milk reaches end users for immediate consumption through an extensive, multi-layered distribution system of middlemen. However the processed milk consumption is growing at the rate of 20% per year. Pasteurized and UHT milk in tetra packs are very popular products.3 There are two ways of milk distribution i.e. through company's own distribution network or through third party distributor. Milk can be supplied once in a day at evening or in morning time. Table 6-1 Dairy Processing Plants in Pakistan4 Sr No 1 2 3 4 5 6 7
3

Plant Nestle Milkpak Limited Nestle Milkpak Limited Haleeb Foods Limited Haleeb Foods Limited Nirala Dairy Pvt. Ltd. Premier Dairy Pvt. Ltd K & K Dairy Pvt. Ltd.

Location Sheikhupura Kabirwala Bhai Pheru R.Y. Khan Tandlianwala Lahore Lahore

Year of establishment 1981 2005 1986 2005 2004 2005 2003

A case study of milk production and marketing by small and medium scale contract farmers of Haleeb Foods Ltd., Pakistan by Dr. Tanvir Ali (www.regoverningmarkets.org/en/filemanager/active?fid=30) 4 Milk Production and Procurement in Pakistan by QCM Engro foods Limited (http://agrihunt.com/index.php?option=com_content&view=article&id=164) 9 PREF-15/May, 2011/ Rev 3

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8 9 10 11 12 13 14 15 16 17 18 19 20 21

Shankarganj Foods Ltd. Noon Pakistan Engro Foods Ltd Engro Foods Ltd Royal dairy Millac Foods Pvt Military Dairy Prime dairy Butt dairy Idara-e-Kissan Gourmet A&A Entreprises Adams Dairy Alpha Dairy

Jaranwala Bhalwal Sukkhur Sahiwal Karachi Lahore Okara Lahore Tandianwala Pattoki Lahore Rahim Yar Khan Sahiwal Jhung

2003 2003 2005 2007

7 RAW MILK
Fresh Milk on average contains 4.5% fats and 6.75% solids, to reach the standardized milk requirement (3.5% fats and 9% solids) 1% of fats are removed with the help of cream separator and milk powder is added to increase the solid contents of milk so that it reaches 9%. Raw milk price varies depending on the season. The feasibility study has taken an average price of Rs. 45 per litre. Raw milk must be free from dirt and have very low bacteria, any powders and must be easy to dissolve.

8 MANPOWER
8.1 Number of People Required A total number of 20 employees have been proposed to run the operations of a mini dairy unit. The unit will be working on one 8 hours shift basis. Table 8-1: Manpower Requirement Title Direct Labour Factory Manager Laboratory analyst Operator Operator helper Loader Admin Staff Marketing Manager Sales person Number 1 1 1 5 2 1 2
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Monthly Salary (Rs.) Annual Salary (Rs.) 50,000 20,000 20,000 8,000 8,000 50,000 20,000 600,000 240,000 240,000 2,880,000 192,000 600,000 480,000

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Admin/Accounts Officer Office boy Driver Guard TOTAL

1 1 3 2 20

20,000 7,000 8,000 8,000

240,000 84,000 288,000 192,000 6,036,000

9 MACHINERY DETAILS
9.1 Plant and Machinery In a pasteurization unit, the major cost of equipment is that of pasteurizer. Second hand used milk pasteurizer is also available in the market. Table below shows the list of machinery required for a pasteurization & packing unit: Table 9-1: Machinery Required Machinery & Equipment MILK RECEPTION Raw milk reception tank 20,000 litres Milk Reception unit Double Static Filter with Bypass Plates Milk Cooler Row Milk Storage tank 3,000 litres Control Panel Centrifugal Electro pump MILK PASTEURIZING Skid mounted pasteurizer Separators Milk degazing / deoderizer unit MILK PASTEURIZER Milk Storage tank 3,000 litres Control Panel Centrifugal Electro pump MILK PACKAGING Automatic filling machine 2000 pouches/hour SERVICE Ice bank unit Semiautomatic CIP unit Steam Generator Installation charges Refer container - 600 litres
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Unit 1 1 1 1
1

Unit Price (Rs.) 600,000 1,638,000 680,400 636,930 1,575,000 151,200 161,280 2,961,000 2,870,910 3,150,000 1,575,000 151,200 151,200 1,250,000 2,646,000 2,772,000 2,772,000 70,000 754,000

Total Cost (Rs.) 600,000 1,638,000 680,400 636,930 1,575,000 151,200 161,280 2,961,000 2,870,910 3,150,000 1,575,000 151,200 151,200 1,250,000 2,646,000 2,772,000 2,772,000 70,000 1,508,000

1 1 1 1 1 1 1 1 1 1 1 1 1 2

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Turnkey operation Generator - 70 KVA Total Machinery and Equipment

1 1

234,800 1,225,000

234,800 1,225,000 28,779,920

10 OFFICE EQUIPMENT
Following tables present the office equipment and furniture/fixtures requirement for a milk pasteurization unit. Table 10-1 Office Equipment Items Computers Printers Telephone exchange Telephone Sets Fax machine TOTAL Items Air conditioners Office Furniture (tables, chairs, cabinets, etc.) Carpeting TOTAL No. of Items 2 1 1 5 1 Cost per Unit (Rs.) 25,000 10,000 10,000 1,000 10,000 Total Cost (Rs.) 50,000 10,000 10,000 5,000 10,000 85,000 Total Cost (Rs.) 70,000 100,000 12,500 182,500

Table 10-2 Furniture, Fixture & Fittings No. of Items 2 Cost per Unit (Rs.) 35,000

11 VEHICLES
The vehicles required for the project to transport raw milk from farms to plant and processed milk for distribution from plant to selling points are given in the table below. Table 11-1 Office Vehicles Vehicle type Master Fordland super (milk tankers installed) Shahzore for refer containers Registration fee TOTAL Number 1 2 2% Cost per Unit (Rs.) 1,200,000 889,000 Total Cost (Rs.) 1,200,000 1,778,000 59,560 3,037,560

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12 LAND AND BUILDING

12.1 Land and building Requirement The land proposed for the set up of this project is approximately 1.3 Kanal (5,820 sq. ft.) in any small industrial area. This area will be sufficient for installation of plant machinery and equipment of a mini dairy. The area requirement and construction cost details are given in the table below. Table 12-1: Land & Building Area and Cost Description Management building Store Room Factory Washrooms Pavement/driveway Grounds Total Construction Cost Total Cost of Land Total Cost Sq ft 500 250 3,000 100 1,000 970 5,820 Construction cost/Sq. ft (Rs.) 1,200 800 1,000 800 200 100 Total (Rs.) 600,000 200,000 3,000,000 80,000 200,000 97,000 4,177,000 1,293,333 5,470,333

12.2 Recommended mode for acquiring Land It is recommended that the unit of this size should be installed on purchased land. Therefore, the pre-feasibility assumes to have purchased 1.3 kanals of land. 12.3 Suitable Locations Any industrial area in major cities of the country is recommended to be a suitable location for a milk-pasteurizing unit. 12.4 Infrastructure Requirements

Following infrastructure would be required for this project: Road Electricity Water Diesel fuel Drainage Gas Telephone and Fax

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13 PROJECT ECONOMICS
The total project cost for setting up the unit is Rs. 41.606 million. The capital cost incurred is Rs. 39.227 million and the working capital is Rs. 2.379 million. The total cost, project returns and financial plan are given in the tables below. Table 13-1: Total Project Cost Account Head Capital Cost Working Capital Cost Total Project Cost Table 13-2: Project Returns NPV (Rs.) IRR Payback Period (Years) Table 13-3: Financing Plan Financing Equity Debt Ratio 50% 50% Rs. 20,803,296 20,803,296 30,846,347 35% 3.77 Total Cost (Rs.) 39,227,013 2,379,579 41,606,592

14 REGULATIONS
Food laws are applicable as pasteurized milk has standard formula of 3.5% fats and 9.5% SNF according to food act 1965. There are no needs of getting a license prior to start a dairy unit in rural surroundings.

15 KEY SUCCESS FACTORS

The commercial viability of this project depends upon the availability of regular milk supply. Another important aspect is the quality check at different stages of production. This is very important after the distribution of milk where there is a need to check that the distributors do not supply adulterated milk. Smart milk distribution networks also play an important role in the success of this business. To establish a brand name, aggressive marketing efforts are recommended.

16 THREATS TO THE BUSINESS

Shortage of milk supplies in summer season. Higher milk prices in summer. Competition with milkmen supplying adulterated milk.

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17 FINANCIAL ANALYSIS
17.1 Project Cost
Initial Investment
Capital Investment Land Building/Infrastructure Machinery & equipment Furniture & fixtures Office vehicles Office equipment Pre-operating costs Training costs Total Capital Costs Working Capital Equipment spare part inventory Raw material inventory Upfront insurance payment Cash Total Working Capital Total Investment Initial Financing Debt Equity Rs. in 50% 50% Rs. in actuals 1,293,333 4,177,000 28,779,920 182,500 3,037,560 85,000 1,621,700 50,000 39,227,013 actuals 71,950 1,095,000 212,629 1,000,000 2,379,579 41,606,592 actuals 20,803,296 20,803,296

Rs. in

Project Returns
EQUITY Net Present Value (Rs.) Internal Rate of Return Payback Period (Yrs) 44,493,167 46% 3.80 PROJECT 30,846,347 35% 3.77

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17.2

Projected Sales Revenue

Revenue Generation
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 5,840,000 5,840,000 5,840,000 5,840,000 5,840,000 5,840,000 5,840,000 5,840,000 5,840,000 5,840,000 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 10% 10% 10% 10% 10% 10% 10% 10% 10% 50% 60% 70% 80% 90% 95% 95% 95% 95% 95% 2,920,000 3,504,000 4,088,000 4,672,000 5,256,000 5,548,000 5,548,000 5,548,000 5,548,000 5,548,000 2,920,000 3,504,000 4,088,000 4,672,000 5,256,000 5,548,000 5,548,000 5,548,000 5,548,000 5,548,000 183,960,000 231,789,600 283,942,260 340,730,712 402,488,154 446,091,037 468,395,589 491,815,368 516,406,137 542,226,443

Production capacity (units) Starting capacity utilization Capacity utilization growth rate Capacity utilization for the year Production 1 - Ltr (units) Production per year Sale price per/Litre (R 63 Revenue

17.3

Cost of Sales
131,400,000 7,300,000 14,600,000 4,152,000 863,398 1,245,563 643,860 1,341,375 876,000 1,460,000 108,000 300,000 164,290,195 165,564,000 9,198,000 17,520,000 5,609,712 906,567 1,370,119 676,053 1,408,444 1,103,760 1,533,000 113,400 315,000 205,318,055 202,815,900 11,267,550 20,440,000 6,733,898 951,896 1,507,131 709,856 1,478,866 1,352,106 1,609,650 119,070 330,750 249,316,672 243,379,080 13,521,060 23,360,000 8,023,813 999,491 1,657,844 745,348 1,552,809 1,622,527 1,690,133 125,024 347,288 297,024,416 287,491,538 15,971,752 26,280,000 9,779,492 1,049,465 1,823,628 782,616 1,630,450 1,916,610 1,774,639 131,275 364,652 348,996,117 318,636,455 17,702,025 27,740,000 11,495,455 1,101,938 2,005,991 821,747 1,711,972 2,124,243 1,863,371 137,838 382,884 385,723,920 334,568,278 18,587,127 27,740,000 12,614,669 1,157,035 2,206,590 862,834 1,797,571 2,230,455 1,956,540 144,730 402,029 404,267,857 351,296,692 19,516,483 27,740,000 13,842,851 1,214,887 2,427,249 905,976 1,887,449 2,341,978 2,054,367 151,967 422,130 423,802,028 368,861,526 20,492,307 27,740,000 15,190,610 1,275,631 2,669,974 951,274 1,981,822 2,459,077 2,157,085 159,565 443,237 444,382,108 387,304,602 21,516,922 27,740,000 16,669,589 1,339,413 2,936,971 998,838 2,080,913 2,582,031 2,264,939 167,543 465,398 466,067,161

Cost of Sales Cost of goods sold 1 Cost of goods sold 2 - Pouch costs Refridgeration cost (at shops) Operating costs 1 (direct labor) Operating costs 2 (machinery maintenance) Operating costs 3 (direct electricity) Diesel expense (Boiler) Diesel expense (Generator) Transportation cost (farm to plant) Transportation cost (distribution of pastuerized milk) CIP costs Lab testing cost of milk Total cost of sales

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17.4

Projected Income Statement

Year 1 Year 2 231,789,600 205,318,055 26,471,545 Year 3 283,942,260 249,316,672 34,625,588 Year 4 340,730,712 297,024,416 43,706,296 Year 5 402,488,154 348,996,117 53,492,036 Year 6 446,091,037 385,723,920 60,367,117 Year 7 468,395,589 404,267,857 64,127,732 Year 8 491,815,368 423,802,028 68,013,341 Rs. in Year 9 516,406,137 444,382,108 72,024,028 actuals Year 10 542,226,443 466,067,161 76,159,282

Income Statement

Revenue Cost of goods sold Gross Profit General administration & selling expenses Administration expense Electricity expense Communications expense (phone, fax, mail, internet, et Travelling expense Office expenses (stationary, entertainment, janitorial se Promotional expense Insurance expense Depreciation expense Amortization of pre-operating costs Amortization of legal, licensing, and training costs Subtotal Operating Income Other income Gain / (loss) on sale of assets Earnings Before Interest & Taxes Interest expense Earnings Before Tax Taxable earnings for the year Tax NET PROFIT/(LOSS) AFTER TAX

183,960,000 164,290,195 19,669,805

1,884,000 312,636 188,400 131,880 188,400 9,198,000 212,629 3,417,348 162,170 5,000 15,700,463 3,969,342 46,958 4,016,300 3,383,176 633,124 633,124 1,839,600 (1,206,476)

2,067,429 343,900 206,743 144,720 206,743 11,589,480 191,366 3,417,348 162,170 5,000 18,334,899 8,136,647 27,519 8,164,166 2,852,536 5,311,630 5,311,630 2,317,896 2,993,734

2,268,717 378,290 226,872 158,810 226,872 14,197,113 170,103 3,417,348 162,170 5,000 21,211,294 13,414,294 417,514 13,831,807 2,159,711 11,672,096 11,672,096 2,918,024 8,754,072

2,489,602 416,119 248,960 174,272 248,960 10,221,921 148,840 3,417,348 162,170 5,000 17,533,193 26,173,103 1,649,012 27,822,115 1,415,966 26,406,149 26,406,149 6,601,537 19,804,612

5,463,987 457,731 546,399 382,479 546,399 12,074,645 127,578 3,417,348 162,170 5,000 23,183,734 30,308,302 3,605,490 33,913,792 535,452 33,378,341 33,378,341 8,344,585 25,033,755

5,995,968 503,504 599,597 419,718 599,597 13,382,731 106,315 3,417,348 162,170 5,000 25,191,947 35,175,170 6,373,492 41,548,661 41,548,661 41,548,661 10,387,165 31,161,496

6,579,744 553,854 657,974 460,582 657,974 14,051,868 85,052 3,417,348 162,170 5,000 26,631,566 37,496,166 9,966,885 47,463,050 47,463,050 47,463,050 11,865,763 35,597,288

7,220,357 609,239 722,036 505,425 722,036 14,754,461 63,789 3,417,348 162,170 5,000 28,181,861 39,831,480 14,037,021 53,868,500 53,868,500 53,868,500 13,467,125 40,401,375

7,923,341 670,163 792,334 554,634 792,334 15,492,184 42,526 3,417,348 162,170 5,000 29,852,035 42,171,993 18,607,931 60,779,924 60,779,924 60,779,924 15,194,981 45,584,943

8,694,769 737,180 869,477 608,634 869,477 16,266,793 21,263 3,417,348 162,170 5,000 31,652,111 44,507,171 24,010,787 68,517,958 68,517,958 68,517,958 17,129,490 51,388,469

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17.5

Projected Cash Flow Statement

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Rs. in Year 9 actuals Year 10

Cash Flow Statement

Operating activities Net profit Add: depreciation expense amortization expense Deferred income tax Accounts receivable Equipment inventory Raw material inventory Advance insurance premium Accounts payable Cash provided by operations Financing activities Change in long term debt Change in short term debt Issuance of shares Cash provided by / (used for) financing activ Investing activities Capital expenditure Cash (used for) / provided by investing activ NET CASH

(71,950) (1,155,833) (212,629) (1,440,412)

(1,206,476) 3,417,348 167,170 (7,560,000) (7,375) (373,334) 21,263 6,622,671 1,081,267

2,993,734 3,417,348 167,170 (9,525,600) (8,131) (437,724) 21,263 8,203,761 4,831,821

8,754,072 3,417,348 167,170 75,939 (4,108,860) (8,964) (511,392) 21,263 3,487,400 11,293,976

19,804,612 3,417,348 167,170 75,939 (4,477,032) (9,883) (595,563) 21,263 3,764,834 22,168,688

25,033,755 3,417,348 167,170 75,939 (4,871,749) (10,896) (503,342) 21,263 4,088,330 27,417,818

31,161,496 3,417,348 167,170 (75,939) (4,329,876) (12,013) (366,662) 21,263 3,628,165 33,610,952

35,597,288 3,417,348 167,170 (75,939) (2,708,525) (13,244) (404,245) 21,263 2,255,796 38,256,912

40,401,375 3,417,348 167,170 (75,939) (1,879,082) (14,602) (445,680) 21,263 1,553,951 43,145,804

45,584,943 3,417,348 167,170 (75,939) (1,973,036) (16,098) (491,362) 21,263 1,638,111 48,272,400

51,388,469 3,417,348 167,170 (75,939) (2,071,688) 173,156 5,285,136 21,263 1,479,813 59,784,728

20,803,296 20,803,296 41,606,592

(2,885,613) 865,180 (2,020,434)

(3,416,254) (865,180) (4,281,434)

(4,044,475) (4,044,475)

(4,788,220) (4,788,220)

(5,668,734) (5,668,734)

(39,227,013) (39,227,013) 939,167

(939,167)

550,387

7,249,501

17,380,468

21,749,083

33,610,952

38,256,912

43,145,804

48,272,400

59,784,728

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17.6

Projected Balance Sheet

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Balance Sheet
Assets Current assets Cash & Bank Accounts receivable Equipment spare part inventory Raw material inventory Pre-paid insurance Total Current Assets Fixed assets Land Building/Infrastructure Machinery & equipment Furniture & fixtures Office vehicles Office equipment Total Fixed Assets Intangible assets Pre-operation costs Training costs Total Intangible Assets TOTAL ASSETS Liabilities & Shareholders' Equity Current liabilities Accounts payable Total Current Liabilities Other liabilities Deferred tax Long term debt Total Long Term Liabilities Shareholders' equity Paid-up capital Retained earnings Total Equity TOTAL CAPITAL AND LIABILITIES

939,167 71,950 1,155,833 212,629 2,379,579

7,560,000 79,325 1,529,168 191,366 9,359,858

550,387 17,085,600 87,455 1,966,892 170,103 19,860,438

7,799,888 21,194,460 96,420 2,478,284 148,840 31,717,892

25,180,356 25,671,492 106,303 3,073,846 127,578 54,159,575

46,929,440 30,543,241 117,199 3,577,188 106,315 81,273,383

80,540,392 34,873,117 129,212 3,943,850 85,052 119,571,622

118,797,303 37,581,642 142,456 4,348,095 63,789 160,933,284

161,943,108 39,460,724 157,057 4,793,775 42,526 206,397,189

210,215,507 41,433,760 173,156 5,285,136 21,263 257,128,823

270,000,235 43,505,448 313,505,683

1,293,333 4,177,000 28,779,920 182,500 3,037,560 85,000 37,555,313

1,293,333 3,968,150 25,901,928 164,250 2,733,804 76,500 34,137,965

1,293,333 3,759,300 23,023,936 146,000 2,430,048 68,000 30,720,617

1,293,333 3,550,450 20,145,944 127,750 2,126,292 59,500 27,303,269

1,293,333 3,341,600 17,267,952 109,500 1,822,536 51,000 23,885,921

1,293,333 3,132,750 14,389,960 91,250 1,518,780 42,500 20,468,573

1,293,333 2,923,900 11,511,968 73,000 1,215,024 34,000 17,051,225

1,293,333 2,715,050 8,633,976 54,750 911,268 25,500 13,633,877

1,293,333 2,506,200 5,755,984 36,500 607,512 17,000 10,216,529

1,293,333 2,297,350 2,877,992 18,250 303,756 8,500 6,799,181

1,293,333 2,088,500 3,381,833

1,621,700 50,000 1,671,700 41,606,592

1,459,530 45,000 1,504,530 45,002,353

1,297,360 40,000 1,337,360 51,918,415

1,135,190 35,000 1,170,190 60,191,351

973,020 30,000 1,003,020 79,048,516

810,850 25,000 835,850 102,577,806

648,680 20,000 668,680 137,291,527

486,510 15,000 501,510 175,068,672

324,340 10,000 334,340 216,948,059

162,170 5,000 167,170 264,095,174

(0) (0) 316,887,517

6,622,671 7,487,851

14,826,432 14,826,432

18,313,832 18,313,832

22,078,666 22,078,666

26,166,996 26,166,996

29,795,160 29,795,160

32,050,956 32,050,956

33,604,907 33,604,907

35,243,018 35,243,018

36,722,831 36,722,831

20,803,296 20,803,296

17,917,683 17,917,683

14,501,429 14,501,429

75,939 10,456,954 10,532,893

151,878 5,668,734 5,820,612

227,817 227,817

151,878 151,878

75,939 75,939

(75,939) (75,939)

(151,878) (151,878)

20,803,296 20,803,296 41,606,592

20,803,296 (1,206,476) 19,596,819 45,002,353

20,803,296 1,787,258 22,590,554 51,918,415

20,803,296 10,541,330 31,344,626 60,191,351

20,803,296 30,345,942 51,149,238 79,048,516

20,803,296 55,379,697 76,182,993 102,577,806

20,803,296 86,541,193 107,344,489 137,291,527

20,803,296 122,138,481 142,941,777 175,068,672

20,803,296 162,539,856 183,343,152 216,948,059

20,803,296 208,124,799 228,928,095 264,095,174

20,803,296 259,513,267 280,316,563 316,887,517

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18 KEY ASSUMPTIONS
Table 18-1 Machinery Assumptions Maximum capacity utilization First year capacity utilization Total Capacity intake per Hour (litres) Actual Production of the unit per day (litres)5 Total Production of the unit at 100% Table 18-2 Operating Assumptions Hours operational per day Processing Hours Days operational per year Table 18-3 Economy-Related Assumptions Electricity price growth rate Diesel price growth rate Wage growth rate Table 18-4 Cash Flow Assumptions Accounts Receivable cycle (in days) Accounts payable cycle (in days) Raw material inventory (in days) Equipment spare part inventory (in days) Table 18-5 Revenue Assumptions Production capacity of the unit in Year 1(litres) at 50% Sale price -1 Litre pouch Year 1 (in Rs.) 1st Year Capacity Utilization Maximum capacity utilization Sale price growth rate Table 18-6 Expense Assumptions Cost of raw milk per litre (Rs.) Refrigeration cost at shops per litre (Rs.) Cost of raw milk growth rate Machinery maintenance (% of machinery cost) Diesel consumption of boiler (Litres per hour) Office expenses (% of administration expense) Promotional expense Year 1-3 (% of revenue)
5

95% 50% 2,000 16,000 5,840,000 10 8 365 10% 5% 10% 30 30 3 30 2,920,000 63 50% 95% 5% 46 5 5% 3% 2.1 10% 5%

Total Production per day is calculated on the basis processing hours operational. 20

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Promotional expense Year 3-10 (% of revenue) Communication expense ( % of administration expense) Travelling expense ( % of administration expense) Office vehicles insurance rate Table 18-7 Financial Assumptions Project life (Years) Debt Equity Interest rate on long-term debt Interest rate on short-term debt Debt tenure (Years) Debt payments per year Table 18-8 Depreciation Rate Assumptions Land Buildings Machinery and Equipment Office Equipment Furniture & Fixtures Vehicles

3% 10.0% 7.0% 7.0% 10 50% 50% 17% 14% 5 12 0% 5% 10% 10% 10% 20%

19 ANNEXURE
19.1 Machinery Suppliers Company Name: Prepac Engineering Industries (Pvt.) Ltd. Address: 20, Attari Industrial Estate, 18 km Ferozpur road, Lahore Tel: 042-35824763-4 Fax: 042-35824765 Email: info@prepac.com.pk Website: www.prepac.com.pk Company Name: Azhar & Co. Address: 19 Main Branderth Road, Lahore Tel: 042-37641060 Fax: 042-37661379 Email: info@azharco.com Website: www.azharco.com Company Name: Unitech International Pvt. Ltd. Address: 5.5 km Raivind road, Lahore. Tel: 042-35320426-7 Fax: 042-35824765 Email: hi@unitechintl.com
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Website: Company Name: Address: Tel: Fax: Email: Website:

www.unitechintl.com KoldKraft Pvt. Ltd. 247-S, Quaid-e-Azam Industrial Estate, Kot lakhpat Lahore. 042-35116727-8 042-35122528 kkraft@brain.net.pk www.koldkraft.com

19.2 Tax deduction income slabs Income Slabs 100,000 110,000 110,000 125,000 125,000 150,000 150,000 175,000 175,000 200,000 200,000 300,000 300,000 400,000 400,000 500,000 500,000 600,000 600,000 800,000 800,000 1,000,000 1,000,000 1,300,000 1,300,000 and above 19.3 Machinery specifications

Tax Rate 0.00% 0.50% 1.00% 2.00% 3.00% 4.00% 5.00% 7.50% 10.00% 12.50% 15.00% 17.50% 21.00% 25.00%

19.3.1 SECTION 1 MILK RECEPTION 1. MILK RECEPTION UNIT Station of milk collection and milk counting Composed of: - Deareator - Pumping system - LDP liquid sensor - Milk counter (without printer - optional on request)on display - Filter Approx consumption: 4 kw
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2. DOUBLE STATIC FILTER WITH BY PASS INTRODUCTION OPERATING PRINCIPLES: PB Static Filter 204 has been designed for filtration of food fluids and is based on the principle of filtration under pressure. It can be used in the dairy field to support the centrifuge cleaning system. Using the 204 Filter there is no additional consumption of electric energy, no modification of the molecular structure of milk fat molecules, no temperature increase. OPERATING PRINCIPLES The milk is pushed through the filter by the existing pumps operating in the dairy factory; if a PB intake station is present (PBAVPS or PBAPS) the pump in the system is used to this purpose. The filtering bag is NMO-P2S type, resistant to hot water up to 190C, to aliphatic solvents, aromatic solvents, alkaline and strongly alkaline systems, acid systems (NOT strong acids). The choice of pore diameter must be done according to the size of particles to be eliminated. DESCRIPTION: PB/FI 204/2 The FI 204 is made by a steel body, a perforated bag support, a filtering bag, a flange. All metal parts are polished to allow easy cleaning. The filter may be integrated in a CIP circuitry; for cleanness and health reasons is advisable to remove the filter bag and clean it separately at the end of any working period. Fittings are according to DIN DN 65 standard, females. A manometer is placed on the top of the housing to allow a check of the filtering bag status. Two units PB/FI 204 coupled and connected together through a by-pass system with 7 valves allowing a continuous filtration process. This double filtering system is assembled on an AISI 304 base with adjustable feet and piping DN 50 or DN 65. SPECIFICATIONS USE filtration of food fluids MAX LOAD 30000 l/h MAX PRESSURE 5 bar MAX TEMP 120 CONTAINER AISI 304 3. PLATES MILK COOLER SP17 Composed with: -n01 frame made in AISI304 stainless steel, complete with screw-cut female coupling DN50 DIN11851 -n08 exchanger closing tierods made in AISI304 stainless steel M16 -n03 adjustable feet - SP17 plates Pietribiasi model made in AISI316 stainless steel
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Technical data: -Exchange surface for each plates 0,08m2 -Fluid contain in each plate = 0.21dm3 -NITRIL Gasket Snap (without glue) -Hydraulic test pressure: 8,6bar -Test temperature: 109C -Maximum hydraulic working pressure: 6bar -Maximum working temperature: 109C Production: -Product = 5.000 l/h Cow milk from 30 C to 4 C -Auxiliary fluid 1 = 10.000 l/h ice water at 1 C Accessories: - Closing mechanism services key - User's manual in English language - Flow diagram 4. ROW MILK STORAGE TANK 3.000 LT Composed of: -Opening manhole -Cleaning device CIP -Large breather -Foam-free inlet connection -Dial thermometer -Floating level gauge -Vertical agitator Technical data: -Vertical cylindrical model -double wall, polyurethane foam or fibreglass thermal insulation, direct expansion or water refrigeration -With adjustable feet or on base -Manufactured on stainless steel sheets -Motorization = 400V 50Hz (1.5 kw) Control panel
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5. CENTRIFUGAL ELECTROPUMP MODEL PB/ZC 40 For transfer the product to the plate heat exchanger during the preparation phase and washing solution Technical information: (0.75 kw) Centrifugal pump consist of a single block including half open impeller made in stainless steel AISI 316 each part of the pump is in accordance with the highest quality standards of the food industry and a polishes only after has been manufactured. The simple pump structure ensures to perform operations such as disassembling to carry out overhaul, inspection and cleaning, without any difficulty. Every operation on the impeller and on mechanical seal can be made very quickly without the assistance of expert staff or the use of special tools. The mechanicals seals are normally of the ROTEN type, they can be adapted to any kind of fluid to be handled, including corrosive acids or particularly abrasive suspension. The electropumps stand on three adjustable stainless-steel feet. 19.3.2 SECTION 2 MIK PASTEURZING 6. SKID MOUNTED PASTEURIZER 2.000 LT/H Pasteurising treatment consists on submit milk or other liquid to a thermal choc which destroyed a great part of bacteria. This process allows a longer shelf life of such products. These treatments are performed by using PIETRIBIASI GROUP - Italy. Composed of: COSTANT LEVEL TANK To keep constant flow during processing phase and preparation washing solution. Composed of: - Half Cover open for inspection - Spray ball for washing - Float or probe for keep constant level Technical information : -Capacity 100 lt. -Completely manufactured in AISI 304 -Connection DN50 for inlet product CENTRIFUGAL ELECTROPUMP MODEL PB/ZC For transfer the product to the plate heat exchanger during the preparation phase and washing solution,

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Technical information: Centrifugal pump consist of a single block including half open impeller made in stainless steel AISI 316 each part of the pump is in accordance with the highest quality standards of the food industry and a polishes only after has been manufactured. The simple pump structure ensures to perform operations such as disassembling to carry out overhaul, inspection and cleaning, without any difficulty. Every operation on the impeller and on mechanical seal can be made very quickly without the assistance of expert staff or the use of special tools. The mechanical seals are normally of the ROTEN type, they can be adapted to any kind of fluid to be handled, including corrosive acids or particularly abrasive suspension. The electro pumps stand on there adjustable stainless-steel feet. FLOW METER COMPLETE OF FLOW REGULATION VALVE This series of instruments as designed for the measurement of the flow of liquid. The measurable flow rates range from fraction with a precision of 1 % full scale. The sensitivity of the instrument is also high: It is possible to measure a flow equivalent to 1/10 of the nominal. No need for a particular maintenance. Internal clearing is not difficult, because the surface coming into contact with fluid are smooth. The cinematisms are situated in a part of the instrument watertight to the fluid, since the transmission of the signal from the sensible element to the cinematisms is made by means of a magnetic field. Those instruments are particularly suitable when strict sanitary measures must be observed. PLATE HEAT EXCHANGER mod. SP 08 - 4 sections Composed of: -n01 frame made in AISI304 stainless steel, complete with screw-cut female coupling DN25 DIN11851 -n08 exchanger closing tierods made in AISI304 stainless steel M16 -n03 adjustable feet -n03 intermediate frame made from FE carbon steel, enamelled AISI304 stainless steel sheeting with DN 50 DIN11851 female coupling connections for the fluids inlet/outlet - SP08 plates Pietribiasi model made in AISI316 stainless steel Technical data: -Exchange surface for each plates 0,08m2 -Fluid contain in each plate = 0.21dm3 -NITRIL Gasket Snap (without glue) -Hydraulic test pressure: 8,6bar
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-Test temperature: 109C -Maximum hydraulic working pressure: 6bar -Maximum working temperature: 109C Production: -Product = 2.000 l/h cow milk -Auxiliary fluid 1 = 4.000 l/h hot water -Auxiliary fluid 2 = 4.000 l/h ice water 1 Thermal cycle: 4-43-68-80-54-16-4/5 C HOLDING PIPE With follow characteristics: -n1 Manufactured of stainless steel AISI 304 welded piping mounted on stainless steel tubolar support, holding time 20 Production: -Holding time 1 = 20" FLOW DEVERSION manufactured from stainless steel AISI 304 Pneumatic valve ON/OFF: three way valve for diversion of flow to the constant level tank as soon as signal follow bellow a present value corresponding to a specified minimum temperature and in phase of preparation plant. HOT WATER PREPARATION AND CIRCULATION CLOSE UNIT TYPE: Sanitary booster Automatic valve Security valve Automatic feeding group to be connected to net water Manometer Valve Steam trap Manual steam valve Pneumatic and modulating steam valve Centrifugal eletropump Brazed plate-heat exchanger (steam-water)
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STAINLESS STEEL CONTROL PANEL (5 kw) Complete of electronic regulator with display for registration and regulation Probe PT 100 for temperature of pasteurization Electronic-pneumatic converter for steam modulation valve Air pressure reduction/stabilizing for steam valve and three way valve Pushes start/stop for each motor protection section Alarm push bottom Acoustic-visual alarm for product deviation Protection IP 55 SET OF CONNECTION MATERIAL between above mentioned equipment with support connections, including: product circuit line, steam and auxiliary fluid with bends, tee, stainless steel piping, and panel control. Electrical and pneumatic connections inside to the frame Note: PRE-ASSEMBLING CARRIED OUT AT OUR FACTORY, MECHANICAL AND HYDRAULIC TESTS WITH THE FIRST SETTING OF THE UNIT 7. SEPARATORS 06v Composed of: -Bowl of stainless steel AISI329-304 with disks of high accuracy and with high resistant carbon steel lock ring, chromium plated -Inlet-outlet flow unit of stainless steel AISI304 with feeding through a closed pipe, skim outlet under pressure by a centripetal pump, and cream outlet by gravity through the tangential pipe of bowl cover, completed with a micrometric valve fitted on skim outlet for cream density regulation -Bowl cover of stainless steel AISI 304, with inside bafle and tangential pipe for cream draining -Cast iron frame painted with oil plugs of stainless steel AISI304 -Electric motor with IP55 protection, with motor cover of stainless steel AISI304 -Bowl vertical shaft of stainless steel AISI 431 driven by a centrifugal clutch and helical gear pair with orthogonal axes -Manual brake with flange and pin of stainless steel AISI304 -Splash lubrication of gears and ball bearings from a central bath -Tachometer -Foundation plate with shock absorbers and stainless steel AISI304 feet -Special spanners set for bowl Technical data:
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-Power supply = 3x220/380V 50Hz -Motor power = 4 kw Production: -Milk skimming = 2.000 l/h -Whey skimming = 3.000 l/h -Standardisation and cleaning = 3.000 l/h Spare parts standard: -Set of bowl gaskets -Set of inlet outlet flow unit gaskets -Discs -Set of clutch shoes -Oil lubricant for first charge 8. MILK DEGAZING/DEODERIZER UNIT Flow rate: 2,000 lt/h Construction features: - Vertical/cylindrical model, mounted on legs - Made completely in st. st. 304, sanitary execution - Equipments sanification is done by washing in hermetic circuit Operating features: - Product falls along the internal wall in a very thin film. - Gas and liquid vapour separation takes place instantaneously foamless. - Vacuum can be adjustable according to the required results. - Equipment can operate within a wide temperature range - Vacuum is granted by a pump which suction condensates and discharges free vapours - Equipped with : Vacuum meter, in-sight glass, Level regulator, electronic type, Complete of St. St. 304 flow modulating valve. - Centrifugal electro pump, st. st. 304 for product extraction. 19.3.3 SECTION 3 MILK PASEURIZER 9. MILK STORAGE TANK 3000 LT Composed of: -Opening manhole -Cleaning device CIP
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-Large breather -Foam-free inlet connection -Dial thermometer -Floating level gauge -Vertical agitator Technical data: -Vertical or horizontal cylindrical model -double wall, polyurethane foam or fibreglass thermal insulation, direct expansion or water refrigeration -With adjustable feet or on base -Manufactured on stainless steel sheets -Motorization = 400V 50Hz (0.75 kw) Control panel 10. CENTRIFUGAL ELECTROPUMP MODEL PB/ZC 20 (0.75 kw) 19.3.4 SECTION 4 MILK PACKAGING 11. CLICK-2S PACKAGING MACHINE CLICK-2 (SS body) automatic form-fill-seal machine for packaging of pasteurized milk in plastic pouches. Inclusive of: 1. Balance tank 2. Pouch counter 3. Electrical components 4. Main drive motor 5. Clutch break unit 6. Photocell system 7. Conveyor Output: 2000 pouches per hour Capacity: 250 ml to 1000 ml Film: co-extruded multi layered PE based film Pouch type: side seal Film width: 330 mm Core dia: 76 mm

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19.3.5 SECTION 5 SERVICE 12. ICE BANK UNIT 180 thermic kwh during 9 hours of accumulations Power kw 18 - 35 amp Complete with: - Air condensing unit - Air blower agitation system - Accumulation vat and compressor 13. SEMIAUTOMATIC CIP UNIT Composed with: -n2 VERTICAL INSULATED TANKS in AISI304 Capacity: lt. 500 each For acid and soda solution Complete with accessories and level probe -n1 VERTICAL INSULATED TANK in AISI304 Capacity: lt. 800 For natural water accumulation Complete with accessories and level probe -n1 PLATES PRE-HEATER For solutions heating Capacity: lt/h 8.000 Thermal cycle : from +50C to +75C Heating by steam at 3,5 Bar -n1 SET OF STEAM FEEDING AND CONDENSE DISCHARGE Modulating steam valve, filter, manual valve, Discharge steam, regulator and air component) -n1 CENTRIFUGAL MOTOR DRIVEN PUMP Power: 5,5kW -n1 MEMBRANE PUMPS For the dosing of the concentrated detergents from small tank of concentrate To the two vertical tank -n09 PNEUMATIC VALVES FOR WASHING CYCLES -n1 STAINLESS STEEL CONTROL PANEL BOARD (5.5 kw)
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Milk Pasteurizing Unit

Protection motor GE Push button / Protection / Emergency Motors GE n1 PREMOUNTING ON STAINLESS STEEL 304 TUBULAR frame Included washing circuit, drain phase, electrical components, steam, water 14. MEDIUM/HIGH PRESSURE STEAM GENERATOR Model SIXEN 500 kg/h PB/ICE steam generator model AX is a three pass wet back reverse flame steam boiler. The boiler is designed and produced especially for use with industrial plants. The AX boiler is designed and manufactured according to the latest codes and provides excellent performance, in order to satisfy all requirements of reliability, endurance and control. As soon as the boiler has been received it can be installed in a very short time, and needs only a solid level foundation on which to place the boiler. All that is then necessary is to connect the steam, feed water, blow down, fuel and electrical connections. AX boiler is generously sized for a large heat sink, in order to meet fluctuating demand of water supply; moreover, a large surface area of evaporation and a large steam space ensuring that dry steam is achieved. In order to obtain low thermal load, AX has a high volume furnace and guarantees a perfect combustion using both gaseous and liquid fuel, absorbing thermal expansion with consequent protection of tubes on tubes plate. The flame enters the furnace and combustion gases return to the front of the combustion chamber via the outside extremities of the flame towards the front opening door. The hot gas then enters the pass of tubes to transfer from the front of the boiler to the back before entering the rear smoke box. The construction of the boiler utilises material tested according to European standards. The metallic components are tested by ultrasonic inspection, whilst the welds are checked by means of radiographic scanning and dye penetrant. Since the use of refractory materials has been completely avoided, the servPB/ICEng operations are reduced to minimum and thermal inertia is prevented. All the cleaning operation is easy and quick thanks to the complete accessibility of all smoke passes. BOILER BODY Built in steel P265GH UNI 10028/2 or P355GH UNI 10028/2 or P355NH UNI 10028/3. The tubes plate is with drilled and subsequently reamed for smoke tube's expanding and welding; smoke tubes are made in carbon steel Fe 35 or 37D. The large volume combustion chamber is sometimes constructed with a corrugated furnace depending on size and pressure. FRONT SMOKE BOX Built in steel sheet, thermally insulated using cement, avoiding refractory material. Front door is fitted to the boiler by steel joints, has twoway opening system and can be opened without removing the burner. All cleaning operations can be carried out by a single operator.
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Pre-Feasibility Study

Milk Pasteurizing Unit

BACK SMOKE CHAMBER Built in steel sheet is fitted to the boiler by brass bolts and can be removed for cleaning operations. Supplied with cleaning door and vent stack connection. The insulation coating consists of very thick rock wool boards and cast steel sheets. BOILER SERVICE The boiler base is built in carbon steel channel in order to guarantee support to the whole vessel. Electrical wiring is in accordance with all safety regulations and converges to a unique centralized control board. INSTRUMENTATION The accessory kit includes all necessary fittings: 1 steam main stop valve 2 spring safety valves according to European standards 2 forged steel level indicators with direct reading reflection box 1 pressure gauge with a great dial and check bridle 1 feed unit fitted composed by: 1 centrifugal pumps 1 filter 3 not return valves 1 injector as further means of feeding 1 blow down valve 1 electronic control/safety system for composed by 2 probes for the water level setting column mounted. 2 safety probes directly fitted inside the boiler, which are neither electrically connected, not mechanically linked to each other 1 limit pressure switch 1 safety pressure switch with manual reset 1 electric control panel composed by: Mains Isolator feed pump switch burner switch control level relay 1st low level relay 2nd low level relay pressure reset switch with visual alarms lamp 1st level reset switch with visual alarms lamp
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Pre-Feasibility Study

Milk Pasteurizing Unit

2nd low level reset switch with visual alarms lamp alarm siren The electrical wiring is in accordance with the latest safety requirements, and is connected to a single centralized control board (IP 54 protection).

34 PREF-15/May, 2011/ Rev 3