smeda milk pasteurizing unit

Pre-Feasibility Study

MILK PASTEURIZING UNIT

Small and Medium Enterprise Development Authority

Government of Pakistan www.smeda.org.pk

HEAD OFFICE 6th Floor LDA Plaza Egerton Road, Lahore

Tel (042)111 111 456, Fax: (042) 36304926-7

[email protected]

REGIONAL OFFICE PUNJAB

REGIONAL OFFICE SINDH

REGIONAL OFFICE KHYBER PAKTUNKHWA

REGIONAL OFFICE BALOCHISTAN

8th Floor LDA Plaza,

Egerton Road, Lahore.

Tel: (042) 111 111 456, Fax: (042) 36370474

[email protected]

5TH Floor, Bahria Complex II,

M.T. Khan Road, Karachi.

Tel: (021) 111-111-456 Fax: (021) 35610572

[email protected]

Ground Floor

State Life Building The Mall, Peshawar.

Tel: (091)111 111 456, 9213046-7 Fax: (091) 286908

[email protected]

Bungalow No. 15-A Chamn

Housing Scheme Airport Road, Quetta.

Tel: (081) 2831623, 2831702 Fax: (081) 2831922

[email protected]

May 2011

Pre-Feasibility Study Milk Pasteurizing Unit

1 Executive Summary ............................................................................................................... 4 2 Introduction to SMEDA ........................................................................................................ 5 3 Purpose of the Document....................................................................................................... 5 4 Project Profile......................................................................................................................... 6

4.1 Project Brief ..................................................................................................................................... 6 4.2 Proposed Business Legal Status....................................................................................................... 6 4.3 Opportunity Rationale...................................................................................................................... 6 4.4 Proposed Milk Processing Capacity................................................................................................. 6 4.5 Product Mix...................................................................................................................................... 7 4.6 Process Flow Chart .......................................................................................................................... 7

5 Current Industry Structure .................................................................................................. 8 6 Marketing................................................................................................................................ 9 7 Raw Milk............................................................................................................................... 10 8 Manpower ............................................................................................................................. 10

8.1 Number of People Required........................................................................................................... 10 9 Machinery Details ................................................................................................................ 11

9.1 Plant and Machinery ...................................................................................................................... 11 10 Office Equipment ........................................................................................................... 12 11 Vehicles............................................................................................................................ 12 12 Land and Building.......................................................................................................... 13

12.1 Land and building Requirement ................................................................................................ 13 12.2 Recommended mode for acquiring Land .................................................................................. 13 12.3 Suitable Locations ..................................................................................................................... 13 12.4 Infrastructure Requirements ...................................................................................................... 13

13 Project Economics .......................................................................................................... 14 14 Regulations...................................................................................................................... 14 15 Key Success Factors ....................................................................................................... 14 16 Threats to the Business .................................................................................................. 14 17 Financial Analysis........................................................................................................... 15

17.1 Project Cost ............................................................................................................................... 15 17.2 Projected Sales Revenue............................................................................................................ 16 17.3 Cost of Sales.............................................................................................................................. 16 17.4 Projected Income Statement ...................................................................................................... 17 17.5 Projected Cash Flow Statement................................................................................................. 18 17.6 Projected Balance Sheet ............................................................................................................ 19

18 Key Assumptions ............................................................................................................ 20 19 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

PREF-15/May, 2011/ Rev 3

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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. PREF-15

Revision 3

Prepared by SMEDA-Punjab

Issue Date April, 2002

Revision Date May , 2011

Issued by Library Officer


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11 EEXXEECCUUTTIIVVEE SSUUMMMMAARRYY 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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22 IINNTTRROODDUUCCTTIIOONN TTOO SSMMEEDDAA 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 SMEDA’s 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.

33 PPUURRPPOOSSEE OOFF TTHHEE DDOOCCUUMMEENNTT 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 don’t occur as frequently as expected.

44 PPRROOJJEECCTT PPRROOFFIILLEE

44..11 PPrroojjeecctt BBrriieeff 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 – 80º C for a certain period of time and then cooling it to 4ºC. 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.

44..22 PPrrooppoosseedd BBuussiinneessss LLeeggaall SSttaattuuss 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.

44..33 OOppppoorrttuunniittyy RRaattiioonnaallee 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.

44..44 PPrrooppoosseedd MMiillkk PPrroocceessssiinngg CCaappaacciittyy 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.

44..55 PPrroodduucctt MMiixx 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.

44..66 PPrroocceessss FFllooww CChhaarrtt 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 75ºC and holding at that temperature for at least 15-20 seconds.

FFiigguurree 44--11:: PPrroocceessss FFllooww ooff MMiillkk PPrroocceessssiinngg PPllaanntt

QA Approved milk Milk Reception Lab Testing

Chilling 4 °C

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This heat treatment ensures the destruction of unwanted micro-organisms and all bacteria. During this process the temperature is reduced to 4ºC 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

Cream

Filling / Packing in Pouch Packs

Distribution

Rejection

Cream Separator

Standardization

Homogenization

Balance Tank



pasteurization process is completed, the tanks will be cleansed through steam for sterilization.

55 CCUURRRREENNTT IINNDDUUSSTTRRYY SSTTRRUUCCTTUURREE11 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

1 The White Revolution – Pakistan Dairy Development Corporation (http://www.pddc.com.pk/DairyPakistan-Publication.pdf)

82 Economic Survey of Pakistan 2009-2010



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.

66 MMAARRKKEETTIINNGG 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 Nestlé, 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.

TTaabbllee 66--11 DDaaiirryy PPrroocceessssiinngg PPllaannttss iinn PPaakkiissttaann44

Sr No Plant Location Year of establishment 1 Nestle Milkpak Limited Sheikhupura 1981 2 Nestle Milkpak Limited Kabirwala 2005 3 Haleeb Foods Limited Bhai Pheru 1986 4 Haleeb Foods Limited R.Y. Khan 2005 5 Nirala Dairy Pvt. Ltd. Tandlianwala 2004 6 Premier Dairy Pvt. Ltd Lahore 2005 7 K & K Dairy Pvt. Ltd. Lahore 2003

3 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)

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4 Milk Production and Procurement in Pakistan by QCM Engro foods Limited (http://agrihunt.com/index.php?option=com_content&view=article&id=164)



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8 Shankarganj Foods Ltd. Jaranwala 2003 9 Noon Pakistan Bhalwal 2003 10 Engro Foods Ltd Sukkhur 2005 11 Engro Foods Ltd Sahiwal 2007 12 Royal dairy Karachi 13 Millac Foods Pvt Lahore 14 Military Dairy Okara 15 Prime dairy Lahore 16 Butt dairy Tandianwala 17 Idara-e-Kissan Pattoki 18 Gourmet Lahore 19 A&A Entreprises Rahim Yar Khan 20 Adam’s Dairy Sahiwal 21 Alpha Dairy Jhung

77 RRAAWW MMIILLKK 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.

88 MMAANNPPOOWWEERR

88..11 NNuummbbeerr ooff PPeeooppllee RReeqquuiirreedd 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.

TTaabbllee 88--11:: MMaannppoowweerr RReeqquuiirreemmeenntt

Title Number Monthly Salary (Rs.) Annual Salary (Rs.)Direct Labour

Factory Manager 1 50,000 600,000 Laboratory analyst 1 20,000 240,000 Operator 1 20,000 240,000 Operator helper 5 8,000 2,880,000 Loader 2 8,000 192,000

Admin Staff Marketing Manager 1 50,000 600,000 Sales person 2 20,000 480,000



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Admin/Accounts Officer 1 20,000 240,000Office boy 1 7,000 84,000Driver 3 8,000 288,000 Guard 2 8,000 192,000

TOTAL 20 6,036,000

99 MMAACCHHIINNEERRYY DDEETTAAIILLSS

99..11 PPllaanntt aanndd MMaacchhiinneerryy 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:

TTaabbllee 99--11:: MMaacchhiinneerryy RReeqquuiirreedd

Machinery & Equipment Unit Unit Price (Rs.)

Total Cost (Rs.)

MILK RECEPTION Raw milk reception tank 20,000 litres 1 600,000 600,000Milk Reception unit 1 1,638,000 1,638,000Double Static Filter with Bypass 1 680,400 680,400Plates Milk Cooler 1 636,930 636,930Row Milk Storage tank 3,000 litres 1 1,575,000 1,575,000Control Panel 1 151,200 151,200Centrifugal Electro pump 1 161,280 161,280

MILK PASTEURIZING Skid mounted pasteurizer 1 2,961,000 2,961,000Separators 1 2,870,910 2,870,910Milk degazing / deoderizer unit 1 3,150,000 3,150,000

MILK PASTEURIZER Milk Storage tank 3,000 litres 1 1,575,000 1,575,000Control Panel 1 151,200 151,200Centrifugal Electro pump 1 151,200 151,200

MILK PACKAGING Automatic filling machine 2000 pouches/hour 1 1,250,000 1,250,000

SERVICE Ice bank unit 1 2,646,000 2,646,000Semiautomatic CIP unit 1 2,772,000 2,772,000Steam Generator 1 2,772,000 2,772,000

Installation charges 1 70,000 70,000Refer container - 600 litres 2 754,000 1,508,000



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Turnkey operation 1 234,800 234,800Generator - 70 KVA 1 1,225,000 1,225,000 Total Machinery and Equipment 28,779,920

1100 OOFFFFIICCEE EEQQUUIIPPMMEENNTT Following tables present the office equipment and furniture/fixtures requirement for a milk pasteurization unit.

TTaabbllee 1100--11 OOffffiiccee EEqquuiippmmeenntt

Items No. of Items

Cost per Unit (Rs.)

Total Cost (Rs.)

Computers 2 25,000 50,000Printers 1 10,000 10,000Telephone exchange 1 10,000 10,000Telephone Sets 5 1,000 5,000Fax machine 1 10,000 10,000TOTAL 85,000

TTaabbllee 1100--22 FFuurrnniittuurree,, FFiixxttuurree && FFiittttiinnggss

Items No. of Items

Cost per Unit (Rs.)

Total Cost (Rs.)

Air conditioners 2 35,000 70,000Office Furniture (tables, chairs, cabinets, etc.)

100,000

Carpeting 12,500TOTAL 182,500

1111 VVEEHHIICCLLEESS 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.

TTaabbllee 1111--11 OOffffiiccee VVeehhiicclleess

Vehicle type Number Cost per Unit (Rs.)

Total Cost (Rs.)

Master Fordland super (milk tankers installed)

1 1,200,000 1,200,000

Shahzore for refer containers 2 889,000 1,778,000Registration fee 2% 59,560TOTAL 3,037,560



1122 LLAANNDD AANNDD BBUUIILLDDIINNGG

1122..11 LLaanndd aanndd bbuuiillddiinngg RReeqquuiirreemmeenntt 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.

TTaabbllee 1122--11:: LLaanndd && BBuuiillddiinngg AArreeaa aanndd CCoosstt

Description Sq ft Construction cost/Sq. ft (Rs.) Total (Rs.)

Management building 500 1,200 600,000Store Room 250 800 200,000Factory 3,000 1,000 3,000,000Washrooms 100 800 80,000Pavement/driveway 1,000 200 200,000Grounds 970 100 97,000Total Construction Cost 4,177,000Total Cost of Land 5,820 1,293,333Total Cost 5,470,333

1122..22 RReeccoommmmeennddeedd mmooddee ffoorr aaccqquuiirriinngg LLaanndd 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.

1122..33 SSuuiittaabbllee LLooccaattiioonnss Any industrial area in major cities of the country is recommended to be a suitable location for a milk-pasteurizing unit.

1122..44 IInnffrraassttrruuccttuurree RReeqquuiirreemmeennttss

Following infrastructure would be required for this project:

• Road • Electricity • Water • Diesel fuel • Drainage • Gas • Telephone and Fax


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Pre-Fea

PREF-15/May

sibility Study Milk Pasteurizing Unit

, 2011/ Rev 3

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1133 PPRROOJJEECCTT EECCOONNOOMMIICCSS 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.

TTaabbllee 1133--11:: TToottaall PPrroojjeecctt CCoosstt

Account Head Total Cost (Rs.)Capital Cost 39,227,013Working Capital Cost 2,379,579Total Project Cost 41,606,592

TTaabbllee 1133--22:: PPrroojjeecctt RReettuurrnnss NPV (Rs.) 30,846,347IRR 35%Payback Period (Years) 3.77

TTaabbllee 1133--33:: FFiinnaanncciinngg PPllaann

Financing Ratio Rs. Equity 50% 20,803,296 Debt 50% 20,803,296

1144 RREEGGUULLAATTIIOONNSS 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.

1155 KKEEYY SSUUCCCCEESSSS FFAACCTTOORRSS • 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.

1166 TTHHRREEAATTSS TTOO TTHHEE BBUUSSIINNEESSSS • Shortage of milk supplies in summer season. • Higher milk prices in summer. • Competition with milkmen supplying adulterated milk.


1177 FFIINNAANNCCIIAALL AANNAALLYYSSIISS

1177..11 PPrroojjeecctt CCoosstt

Capital Investment Rs. in actualsLand 1,293,333 Building/Infrastructure 4,177,000 Machinery & equipment 28,779,920 Furniture & fixtures 182,500 Office vehicles 3,037,560 Office equipment 85,000 Pre-operating costs 1,621,700 Training costs 50,000 Total Capital Costs 39,227,013

Working Capital Rs. in actualsEquipment spare part inventory 71,950 Raw material inventory 1,095,000 Upfront insurance payment 212,629 Cash 1,000,000 Total Working Capital 2,379,579

Total Investment 41,606,592

Initial Financing Rs. in actualsDebt 50% 20,803,296 Equity 50% 20,803,296

Project ReturnsEQUITY PROJECT

Payback Period (Yrs) 3.80 3.77

Initial Investment

Net Present Value (Rs.) 44,493,167 30,846,347 Internal Rate of Return 46% 35%


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1177..22 PPrroojjeecctteedd SSaalleess RReevveennuuee

Revenue Generation

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Production capacity (units) 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 Starting capacity utilization 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%Capacity utilization growth rate 10% 10% 10% 10% 10% 10% 10% 10% 10%Capacity utilization for the year 50% 60% 70% 80% 90% 95% 95% 95% 95% 95%Production 1 - Ltr (units) 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 Production per year 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 Sale price per/Litre (R 63 Revenue 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

1177..33 CCoosstt ooff SSaalleess Cost of Sales

Cost of goods sold 1 131,400,000 165,564,000 202,815,900 243,379,080 287,491,538 318,636,455 334,568,278 351,296,692 368,861,526 387,304,602 Cost of goods sold 2 - Pouch costs 7,300,000 9,198,000 11,267,550 13,521,060 15,971,752 17,702,025 18,587,127 19,516,483 20,492,307 21,516,922 Refridgeration cost (at shops) 14,600,000 17,520,000 20,440,000 23,360,000 26,280,000 27,740,000 27,740,000 27,740,000 27,740,000 27,740,000 Operating costs 1 (direct labor) 4,152,000 5,609,712 6,733,898 8,023,813 9,779,492 11,495,455 12,614,669 13,842,851 15,190,610 16,669,589 Operating costs 2 (machinery maintenance) 863,398 906,567 951,896 999,491 1,049,465 1,101,938 1,157,035 1,214,887 1,275,631 1,339,413 Operating costs 3 (direct electricity) 1,245,563 1,370,119 1,507,131 1,657,844 1,823,628 2,005,991 2,206,590 2,427,249 2,669,974 2,936,971 Diesel expense (Boiler) 643,860 676,053 709,856 745,348 782,616 821,747 862,834 905,976 951,274 998,838 Diesel expense (Generator) 1,341,375 1,408,444 1,478,866 1,552,809 1,630,450 1,711,972 1,797,571 1,887,449 1,981,822 2,080,913 Transportation cost (farm to plant) 876,000 1,103,760 1,352,106 1,622,527 1,916,610 2,124,243 2,230,455 2,341,978 2,459,077 2,582,031 Transportation cost (distribution of pastuerized milk) 1,460,000 1,533,000 1,609,650 1,690,133 1,774,639 1,863,371 1,956,540 2,054,367 2,157,085 2,264,939 CIP costs 108,000 113,400 119,070 125,024 131,275 137,838 144,730 151,967 159,565 167,543 Lab testing cost of milk 300,000 315,000 330,750 347,288 364,652 382,884 402,029 422,130 443,237 465,398

Total cost of sales 164,290,195 205,318,055 249,316,672 297,024,416 348,996,117 385,723,920 404,267,857 423,802,028 444,382,108 466,067,161


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1177..44 PPrroojjeecctteedd IInnccoommee SSttaatteemmeenntt Income Statement

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

Revenue 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 Cost of goods sold 164,290,195 205,318,055 249,316,672 297,024,416 348,996,117 385,723,920 404,267,857 423,802,028 444,382,108 466,067,161 Gross Profit 19,669,805 26,471,545 34,625,588 43,706,296 53,492,036 60,367,117 64,127,732 68,013,341 72,024,028 76,159,282

General administration & selling expensesAdministration expense 1,884,000 2,067,429 2,268,717 2,489,602 5,463,987 5,995,968 6,579,744 7,220,357 7,923,341 8,694,769 Electricity expense 312,636 343,900 378,290 416,119 457,731 503,504 553,854 609,239 670,163 737,180 Communications expense (phone, fax, mail, internet, et 188,400 206,743 226,872 248,960 546,399 599,597 657,974 722,036 792,334 869,477 Travelling expense 131,880 144,720 158,810 174,272 382,479 419,718 460,582 505,425 554,634 608,634 Office expenses (stationary, entertainment, janitorial se 188,400 206,743 226,872 248,960 546,399 599,597 657,974 722,036 792,334 869,477 Promotional expense 9,198,000 11,589,480 14,197,113 10,221,921 12,074,645 13,382,731 14,051,868 14,754,461 15,492,184 16,266,793 Insurance expense 212,629 191,366 170,103 148,840 127,578 106,315 85,052 63,789 42,526 21,263 Depreciation expense 3,417,348 3,417,348 3,417,348 3,417,348 3,417,348 3,417,348 3,417,348 3,417,348 3,417,348 3,417,348 Amortization of pre-operating costs 162,170 162,170 162,170 162,170 162,170 162,170 162,170 162,170 162,170 162,170 Amortization of legal, licensing, and training costs 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000

Subtotal 15,700,463 18,334,899 21,211,294 17,533,193 23,183,734 25,191,947 26,631,566 28,181,861 29,852,035 31,652,111 Operating Income 3,969,342 8,136,647 13,414,294 26,173,103 30,308,302 35,175,170 37,496,166 39,831,480 42,171,993 44,507,171

Other income 46,958 27,519 417,514 1,649,012 3,605,490 6,373,492 9,966,885 14,037,021 18,607,931 24,010,787 Gain / (loss) on sale of assets - - - - - - - - - - Earnings Before Interest & Taxes 4,016,300 8,164,166 13,831,807 27,822,115 33,913,792 41,548,661 47,463,050 53,868,500 60,779,924 68,517,958

Interest expense 3,383,176 2,852,536 2,159,711 1,415,966 535,452 - - - - - Earnings Before Tax 633,124 5,311,630 11,672,096 26,406,149 33,378,341 41,548,661 47,463,050 53,868,500 60,779,924 68,517,958

Taxable earnings for the year 633,124 5,311,630 11,672,096 26,406,149 33,378,341 41,548,661 47,463,050 53,868,500 60,779,924 68,517,958 Tax 1,839,600 2,317,896 2,918,024 6,601,537 8,344,585 10,387,165 11,865,763 13,467,125 15,194,981 17,129,490 NET PROFIT/(LOSS) AFTER TAX (1,206,476) 2,993,734 8,754,072 19,804,612 25,033,755 31,161,496 35,597,288 40,401,375 45,584,943 51,388,469


17


1177..55 PPrroojjeecctteedd CCaasshh FFllooww SSttaatteemmeenntt Cash Flow Statement

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

Operating activitiesNet profit - (1,206,476) 2,993,734 8,754,072 19,804,612 25,033,755 31,161,496 35,597,288 40,401,375 45,584,943 51,388,469 Add: depreciation expense - 3,417,348 3,417,348 3,417,348 3,417,348 3,417,348 3,417,348 3,417,348 3,417,348 3,417,348 3,417,348 amortization expense - 167,170 167,170 167,170 167,170 167,170 167,170 167,170 167,170 167,170 167,170 Deferred income tax - - - 75,939 75,939 75,939 (75,939) (75,939) (75,939) (75,939) (75,939) Accounts receivable - (7,560,000) (9,525,600) (4,108,860) (4,477,032) (4,871,749) (4,329,876) (2,708,525) (1,879,082) (1,973,036) (2,071,688) Equipment inventory (71,950) (7,375) (8,131) (8,964) (9,883) (10,896) (12,013) (13,244) (14,602) (16,098) 173,156 Raw material inventory (1,155,833) (373,334) (437,724) (511,392) (595,563) (503,342) (366,662) (404,245) (445,680) (491,362) 5,285,136 Advance insurance premium (212,629) 21,263 21,263 21,263 21,263 21,263 21,263 21,263 21,263 21,263 21,263 Accounts payable - 6,622,671 8,203,761 3,487,400 3,764,834 4,088,330 3,628,165 2,255,796 1,553,951 1,638,111 1,479,813

Cash provided by operations (1,440,412) 1,081,267 4,831,821 11,293,976 22,168,688 27,417,818 33,610,952 38,256,912 43,145,804 48,272,400 59,784,728

Financing activitiesChange in long term debt 20,803,296 (2,885,613) (3,416,254) (4,044,475) (4,788,220) (5,668,734) - - - - - Change in short term debt - 865,180 (865,180) - - - - - - - - Issuance of shares 20,803,296 - - - - - - - - - -

Cash provided by / (used for) financing activ 41,606,592 (2,020,434) (4,281,434) (4,044,475) (4,788,220) (5,668,734) - - - - -

Investing activitiesCapital expenditure (39,227,013) - - - - - - - - - -

Cash (used for) / provided by investing activ (39,227,013) - - - - - - - - - -

NET CASH 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


18

Pre-Fea

PREF-15/May

sibility Study Milk Pasteurizing Unit

, 2011/ Rev 3

19

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

AssetsCurrent assets

Cash & Bank 939,167 - 550,387 7,799,888 25,180,356 46,929,440 80,540,392 118,797,303 161,943,108 210,215,507 270,000,235 Accounts receivable - 7,560,000 17,085,600 21,194,460 25,671,492 30,543,241 34,873,117 37,581,642 39,460,724 41,433,760 43,505,448 Equipment spare part inventory 71,950 79,325 87,455 96,420 106,303 117,199 129,212 142,456 157,057 173,156 - Raw material inventory 1,155,833 1,529,168 1,966,892 2,478,284 3,073,846 3,577,188 3,943,850 4,348,095 4,793,775 5,285,136 - Pre-paid insurance 212,629 191,366 170,103 148,840 127,578 106,315 85,052 63,789 42,526 21,263 -

Total Current Assets 2,379,579 9,359,858 19,860,438 31,717,892 54,159,575 81,273,383 119,571,622 160,933,284 206,397,189 257,128,823 313,505,683

Fixed assetsLand 1,293,333 1,293,333 1,293,333 1,293,333 1,293,333 1,293,333 1,293,333 1,293,333 1,293,333 1,293,333 1,293,333 Building/Infrastructure 4,177,000 3,968,150 3,759,300 3,550,450 3,341,600 3,132,750 2,923,900 2,715,050 2,506,200 2,297,350 2,088,500 Machinery & equipment 28,779,920 25,901,928 23,023,936 20,145,944 17,267,952 14,389,960 11,511,968 8,633,976 5,755,984 2,877,992 - Furniture & fixtures 182,500 164,250 146,000 127,750 109,500 91,250 73,000 54,750 36,500 18,250 - Office vehicles 3,037,560 2,733,804 2,430,048 2,126,292 1,822,536 1,518,780 1,215,024 911,268 607,512 303,756 - Office equipment 85,000 76,500 68,000 59,500 51,000 42,500 34,000 25,500 17,000 8,500 -

Total Fixed Assets 37,555,313 34,137,965 30,720,617 27,303,269 23,885,921 20,468,573 17,051,225 13,633,877 10,216,529 6,799,181 3,381,833

Intangible assetsPre-operation costs 1,621,700 1,459,530 1,297,360 1,135,190 973,020 810,850 648,680 486,510 324,340 162,170 (0) Training costs 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 -

Total Intangible Assets 1,671,700 1,504,530 1,337,360 1,170,190 1,003,020 835,850 668,680 501,510 334,340 167,170 (0) TOTAL ASSETS 41,606,592 45,002,353 51,918,415 60,191,351 79,048,516 102,577,806 137,291,527 175,068,672 216,948,059 264,095,174 316,887,517

Liabilities & Shareholders' EquityCurrent liabilities

Accounts payable - 6,622,671 14,826,432 18,313,832 22,078,666 26,166,996 29,795,160 32,050,956 33,604,907 35,243,018 36,722,831 Total Current Liabilities - 7,487,851 14,826,432 18,313,832 22,078,666 26,166,996 29,795,160 32,050,956 33,604,907 35,243,018 36,722,831

Other liabilitiesDeferred tax - - - 75,939 151,878 227,817 151,878 75,939 - (75,939) (151,878) Long term debt 20,803,296 17,917,683 14,501,429 10,456,954 5,668,734 - - - - - -

Total Long Term Liabilities 20,803,296 17,917,683 14,501,429 10,532,893 5,820,612 227,817 151,878 75,939 - (75,939) (151,878)

Shareholders' equityPaid-up capital 20,803,296 20,803,296 20,803,296 20,803,296 20,803,296 20,803,296 20,803,296 20,803,296 20,803,296 20,803,296 20,803,296 Retained earnings - (1,206,476) 1,787,258 10,541,330 30,345,942 55,379,697 86,541,193 122,138,481 162,539,856 208,124,799 259,513,267

Total Equity 20,803,296 19,596,819 22,590,554 31,344,626 51,149,238 76,182,993 107,344,489 142,941,777 183,343,152 228,928,095 280,316,563 TOTAL CAPITAL AND LIABILITIES 41,606,592 45,002,353 51,918,415 60,191,351 79,048,516 102,577,806 137,291,527 175,068,672 216,948,059 264,095,174 316,887,517

1177..66 PPrroojjeecctteedd BBaallaannccee SShheeeett


1188 KKEEYY AASSSSUUMMPPTTIIOONNSS

TTaabbllee 1188--11 MMaacchhiinneerryy AAssssuummppttiioonnss Maximum capacity utilization 95%First year capacity utilization 50%Total Capacity intake per Hour (litres) 2,000Actual Production of the unit per day (litres)5 16,000Total Production of the unit at 100% 5,840,000

TTaabbllee 1188--22 OOppeerraattiinngg AAssssuummppttiioonnss Hours operational per day 10Processing Hours 8Days operational per year 365

TTaabbllee 1188--33 EEccoonnoommyy--RReellaatteedd AAssssuummppttiioonnss Electricity price growth rate 10%Diesel price growth rate 5%Wage growth rate 10%

TTaabbllee 1188--44 CCaasshh FFllooww AAssssuummppttiioonnss Accounts Receivable cycle (in days) 30Accounts payable cycle (in days) 30Raw material inventory (in days) 3Equipment spare part inventory (in days) 30

TTaabbllee 1188--55 RReevveennuuee AAssssuummppttiioonnss Production capacity of the unit in Year 1(litres) at 50% 2,920,000Sale price -1 Litre pouch Year 1 (in Rs.) 631st Year Capacity Utilization 50%Maximum capacity utilization 95%Sale price growth rate 5%

TTaabbllee 1188--66 EExxppeennssee AAssssuummppttiioonnss

Cost of raw milk per litre (Rs.) 46Refrigeration cost at shops per litre (Rs.) 5Cost of raw milk growth rate 5%Machinery maintenance (% of machinery cost) 3%Diesel consumption of boiler (Litres per hour) 2.1Office expenses (% of administration expense) 10%Promotional expense Year 1-3 (% of revenue) 5%

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



21

Promotional expense Year 3-10 (% of revenue) 3%Communication expense ( % of administration expense) 10.0%Travelling expense ( % of administration expense) 7.0%Office vehicles insurance rate 7.0%

TTaabbllee 1188--77 FFiinnaanncciiaall AAssssuummppttiioonnss Project life (Years) 10Debt 50%Equity 50%Interest rate on long-term debt 17%Interest rate on short-term debt 14%Debt tenure (Years) 5Debt payments per year 12

TTaabbllee 1188--88 DDeepprreecciiaattiioonn RRaattee AAssssuummppttiioonnss Land 0%Buildings 5%Machinery and Equipment 10%Office Equipment 10%Furniture & Fixtures 10%Vehicles 20%

1199 AANNNNEEXXUURREE

1199..11 MMaacchhiinneerryy SSuupppplliieerrss 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: [email protected] Website: www.prepac.com.pk Company Name: Azhar & Co. Address: 19 Main Branderth Road, Lahore Tel: 042-37641060 Fax: 042-37661379 Email: [email protected] 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: [email protected]



22

Website: www.unitechintl.com Company Name: KoldKraft Pvt. Ltd. Address: 247-S, Quaid-e-Azam Industrial Estate, Kot lakhpat Lahore. Tel: 042-35116727-8 Fax: 042-35122528 Email: [email protected] Website: www.koldkraft.com

1199..22 TTaaxx ddeedduuccttiioonn iinnccoommee ssllaabbss Income Slabs Tax Rate 0.00% 100,000 – 110,000 0.50% 110,000 – 125,000 1.00% 125,000 – 150,000 2.00% 150,000 – 175,000 3.00% 175,000 – 200,000 4.00% 200,000 – 300,000 5.00% 300,000 – 400,000 7.50% 400,000 – 500,000 10.00% 500,000 – 600,000 12.50% 600,000 – 800,000 15.00% 800,000 – 1,000,000 17.50% 1,000,000 – 1,300,000 21.00% 1,300,000 and above 25.00%

1199..33 MMaacchhiinneerryy ssppeecciiffiiccaattiioonnss

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



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 190°C, 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: -n°01 frame made in AISI304 stainless steel, complete with screw-cut female coupling DN50 DIN11851

-n°08 exchanger closing tierods made in AISI304 stainless steel M16

-n°03 adjustable feet

- SP17 plates Pietribiasi model made in AISI316 stainless steel


23


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: 109°C

-Maximum hydraulic working pressure: 6bar

-Maximum working temperature: 109°C

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


24


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,


25


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: -n°01 frame made in AISI304 stainless steel, complete with screw-cut female coupling DN25 DIN11851

-n°08 exchanger closing tierods made in AISI304 stainless steel M16

-n°03 adjustable feet

-n°03 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


26


-Test temperature: 109°C

-Maximum hydraulic working pressure: 6bar

-Maximum working temperature: 109°C

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:

-n°1 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)


27


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:


28


-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


29


-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


30


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: -n°2 VERTICAL INSULATED TANKS in AISI304

Capacity: lt. 500 each

For acid and soda solution

Complete with accessories and level probe

-n°1 VERTICAL INSULATED TANK in AISI304

Capacity: lt. 800

For natural water accumulation

Complete with accessories and level probe

-n°1 PLATES PRE-HEATER

For solutions heating

Capacity: lt/h 8.000

Thermal cycle : from +50°C to +75°C

Heating by steam at 3,5 Bar

-n°1 SET OF STEAM FEEDING AND CONDENSE DISCHARGE

Modulating steam valve, filter, manual valve, Discharge steam, regulator and air component)

-n°1 CENTRIFUGAL MOTOR DRIVEN PUMP

Power: 5,5kW

-n°1 MEMBRANE PUMPS

For the dosing of the concentrated detergents from small tank of concentrate To the two vertical tank

-n°09 PNEUMATIC VALVES FOR WASHING CYCLES

-n°1 STAINLESS STEEL CONTROL PANEL BOARD (5.5 kw)


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Protection motor GE

Push button / Protection / Emergency Motors GE

n°1 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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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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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).


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smeda milk pasteurizing unit

Documents

nitril gasket

floating level

stainless

fibreglass

stainless

aisi304 stainless

including

milk pasteurizing