ENTREPRENEURSHIP DEVELOPMENT PROJECT TOPIC

“PANEER MAKING UNIT”

Under The Guidance of:

Mrs. Shital Jain

Submitted By:

Ayush Anjana

BATCH- G

T.Y. B.Sc. SHTS 2023-2024

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 CERTIFICATE

This is to certify that Mr. Ayush Anjana has performed the practical of the
Entrepreneur Development Project as it essential in three year curriculum of
D.Y. Patil University, School of Hospitality and Tourism Studies, Nerul , Navi
Mumbai.
The Project Entitled “PANEER MAKING UNIT” Contained all the relevant
information for the Completion of the project.

Mrs. Pallavi Chaudhary (Director) -

Project Incharge -

External Examiner -

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 ACKNOWLEDGEMENT

I am very thankful to everyone who all supported me for completing my project

effectively and moreover on time

I am equally grateful to my project in charge Mrs. Shital Jain who gave me

moral support and guided me in different matters regarding the topic. She had
been very kind and patient while suggesting me the outlines of this project and
correcting my doubts. I thank her for his overall supports.

I express my thanks to my DIRECTOR(Mrs. Pallavi Chaudhary)for extending

her support.

Last but not the least, I would like to thank to my friends who helped me a
lot in gathering different information, collecting data and guiding me from
time to time in making this project.

I have selected the PROJECT on “PANEER MAKING UNIT”

Hope that it contained all the required information.

Thanking You!

Ayush Anjana

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 INDEX

SR.NO PARTICULAR PAGE NO.

1 Introduction 5

2 Market Potential 6

3 Manufacturing Process 8

4 Financial Analysis 9

5 Land & Building 10

6 Total Fixed Assets 11

7 Raw Material 12

8 Utilities 12

9 Man-power Requirement 13

10 Cost of Production 14

11 Means of Finance 15

12 Projected Balance Sheet 16

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 INTRODUCTION

Paneer is a South Asian variety of soft cheese obtained by acid and heat coagulation
of milk. It is a popular indigenous dairy product of India, is similar to an unripened
variety of soft cheese which is used in the preparation of a variety of culinary dishes
and snacks. It is obtained by heat and acid coagulation of milk, entrapping almost
all the fat, casein complexed with denatured whey proteins and a portion of salts and
lactose. It is a rich source of high-quality animal protein, fat, minerals and vitamins.
The production of paneer has been largely confined to the unorganised dairy sector
which employs traditional, inefficient methods of manufacture.

Paneer is a staple ingredient in many Indian dishes and can be used fresh or deep
fried. Paneer is commonly used in sweets, snacks or with vegetables. Various other
uses are follows:
➢ Paneer can be included in curries, particularly with tomatoes, potatoes or peas.
➢ Cubes of paneer can be added to soup to provide texture.
➢ Fresh paneer can be boiled in sugar syrup and served as a sweet.
➢ Paneer itself has a rather bland flavor but it can act as a flavor carrier.
Therefore, it is excellent marinated or used in a curry or sauce.
The paneer market in India grew at a CAGR of 12.5% during 2014-2019. As a
considerable part of population consists of vegetarians, paneer emerges as a viable
option. Apart from this, factors such as increasing population, urbanization rates,
improved cold supply chain and growing deep freezer penetration are also
influencing the market growth. We can expect the market to exhibit strong growth
during 2020-2025.

Product Benefits:

➢ Reduces the Risk of Breast Cancer

➢ Makes Teeth & Bones Strong
➢ Aids in Weight Loss
➢ Ensures a Healthy Digestive System.
➢ Great for Those Having Diabetes.

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 MARKET POTENTIAL / BUSINESS PLAN

 Paneer Market Introduction:

South India is the biggest market for paneer. However, paneer is popular in almost

every state in the country. Industry insiders reason that paneer may be finding

acceptability because more people are eating out and traveling a great deal within

the country. However, Amul sells 65% of the branded paneer in the country.

Hotel industries are the major consumer of the paneer. Besides, paneer consumption

is growing in India by 25%-30% yearly. Therefore, starting a small scale paneer

manufacturing project is highly lucrative for new entrepreneurs, if you are already in

the dairy business, you can also consider starting a small unit with the existing one.

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  Market Potential of Paneer Manufacturing:

In our country, paneer is quite a popular dairy item almost in every household. Both

in vegetarian and non-vegetarian dishes, paneer are used. Naturally it is sold in

various grocery stores, supermarkets, departmental stores etc. As paneer is the

primary ingredient in several exotic Indian dishes, restaurants, hotels, food joints are

the most important consumers of paneer. However, packaged paneer of several

reputed brands namely Amul, Nestle etc. is sold maximum in the market, near about

65%. One thing is clear from the above words that paneer consumption is

increasing at a faster rate. Thus, if you have interest in dairy industry, you can start

the business of paneer manufacturing and expect a high return.

 Sales Revenue:

It may take about RS. Per liter of good quality milk and the cream and the paneer

can be sold at RS 220 per kg. RS.240 is the MRP per kg. The yield of cream can be

of 4500 kg per year and the revenue will be of RS.9.90 lakhs. Paneer of 12 metric

ton will generate about RS.

26.40 lakhs and this will result in total revenue of RS.36.30 lakhs.

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  Competitive Landscape:

The paneer market in India is highly concentrated in nature with the presence of

only a few large manufacturers, such as Amul, Mother Dairy, Gowardhan, these

players compete against one another in terms of prices and quality.

MANUFACTURING PROCESS

The milk is procured from vendors and stored in storage tanks prior to primary processing of
milk, boiler is utilised to generate steam which is utilised in various process of plant which
generally includes heating of milk in this case.
This steam is utilised in pasteuriser to heat the milk for pasteurisation at temperature ranging
from 80 to 90 degree Celsius, after appropriate holding time which is 5 minutes at high
temperature steady state, milk is sent to another holding tank which stores the milk so as to cool
it to 80 to 75 degree Celsius. As cooling curve for milk is exponential, it does not require any
significant cooling time even without any addition cooling arrangement. If a faster cooling is to be
achieved ambient water circulation through jackets of holding tank s sufficient.
After this temperature is achieved, the milk is pumped into coagulation tank, which has steam
jackets to maintain temperature of milk, once steady state temperature is achieved which is 70
degree Celsius for buffalo milk and 80 degree Celsius for cow milk, coagulant is added citric acid,
lactic acid etc. The milk is stirred gently and manually till whey separates out.
The mixture is allowed to settle and excess whey is drained out, till it reaches close to top
surface of coagulated mass. This coagulated mass is fed to paneer press, which essential press
the paneer in order to drain out most of water within coagulated mass, in order to obtain a large
block of paneer.
This paneer block is manually cut in required sizes, checked for required weight, packed and
stored in IBT Chilling Machine prior to dispatch, which is essential in order to reduce bacterial
growth as well as allows paneer to be stored till dispatch.

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 FINANCIAL ANALYSIS

A. Fixed Asset

1. Plant and Machinery

Sr.No Particulars Total Unit Rate /Unit Total

Amount

1 Milk Pasteurizer I 50,000/- 50,000/-

2 Chilling Machine 2 50,000/- 1,00,000/-

3 Paneer Press 1 20,000/- 20,000/-

4 Paneer Coagulation Tank 1 50,000/- 50,000/-

5 Milk Storage Tank 2 50,000/- 1,00,000/-

6 Boiler 1 40,000/- 40,000/-

7 Weighing Balance 2 20,000/- 40,000/-

Total 4,00,000/-

2. Other Fixed Assets-

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 Sr. No. Particular Rate /Unit Total Unit Total Amount

1 Table 500 5 2,500/-

2 Chair 800 5 4000/-

3 Cooler 7000 2 14,000/-

4 Printer 5000 2 10,000/-

5 Major Equipment 14,500 1 14,500/-

Total Amount 45,000/-

LAND AND BUILDING

Land and Building:The approximate total area required for complete small-scale factory setup is
1000-1200 Sq. ft. approximately smooth production.

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 Sr. No. Particulars Amount

1 1000 per sq.ft. 12,00,000/-

Total 1200 sq.ft.

Total Amount 12,00,000/-

TOTAL FIXED ASSETS

Sr. No. Particulars Amount

1 Plant and Machinery 4,00,000/-

2 Other Fixed Assets 45,000/-

3 Land and Building 12,00,000/-

Total Amount 16,45,000/-

RAW MATERIALS

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Sr.No Particulars Rate /kg Total Total Amount Amount /Year
/Month
quantity Amount

/Day

1 Milk 40/- 200 kg 8,000/- 2,40,000/- 28,80,000/-

2 Citric Acid 80/- 20 kg 1600/- 48,000/- 5,76,000/-

Total 9,600/- 2,88,000/- 34,56,000/-

UTILITIES

Sr.No. Particulars Amount / Month Amount/ Year

1 Electricity 10,000/- 1,20,000/-

2 Water Bill 2,000/- 24,000/-

3 Telephone Bill 3,000/- 36,000/-

4 Gas Bill 4,000/- 48,000-

5 Transport 10,000/- 1,20,000/-

Total 29,000/- 3,48,000/-

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 MANPOWER REQUIREMENT

Sr.No Particulars Quantity Salary Total amount Salary /Year.

Month

1 Manager 1 15,000/- 15,000/- 1,80,000/-

2 Skilled Employee 2 15,000/- 30,000/- 3,60,000/-

3 Technical Staff 2 18,000/- 36,000/- 4,32,000/-

4 Marketing 2 12,000/- 24,000/- 2,88,000/-

Executive

5 Driver 2 14,000/- 28,000/- 3,36,000/-

6 Housekeeping 4 8000/- 32,000/- 3,84,000/-

7 Security 3 10,000/- 30,000/- 3,60,000/-

Total 16 92,000/- 1,95,000/- 23,40,000/-

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 COST OF PRODUCTION

Sr.No. Particulars Amount

1 Raw Material 34,56,000/-

2 Manpower 23,40,000/-

3 Utilities 3,48,000/-

4 Fixed Assets 16,45,000/-

5 Contingencies 10,000/-

Total 77,99,000/-

Projected Annual Sales

PAS= Cost of Production + 30% of Cost of production

=77,99,000 + 23,39,700

=1,01,38,700/-

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 Sr.No. Particulars Amount

1 Owner’s Capital 50,00,000/-

2 Bank Loan 30,00,000/-

(Interest on Bank Loan at 12%)

Total 80,00,000/-

MEANS OF FINANCE

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 PROJECTED BALANCE SHEET

FY 2025-26 (First Year)

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