The document outlines a proposal for establishing cold milk centers in Sindh province to address issues with milk availability, quality, and waste by collecting, chilling, and storing milk hygienically to extend its shelf life and ensure a regular supply of pure milk to customers. It discusses the current challenges around milk production and distribution, provides operational details of the proposed centers, and presents financial projections indicating the business will be profitable.

1. First Milk

2. MUISTD Evening
Paras Sheeraz Abro
S. Aijaz Shah
S. Ashiq Shah
Khurram A. Shaikh

6. • Higher demands & Lesser supplies
• Milk Availability trends
• Ice Addition & Lack of chillers
• Conceptual gap about hygienic impacts
• Shortage of Skilled & trained human resources

7. • Pure & Hygienic milk is the utmost requirement
in every walk of life.
• purity as prime condition for test in all type of
milk products.
• Hygienic milk as prime requirement of all
Humans.
• pure milk as pre condition for nutrition.
• Hence all time availability of pure and hygienic
milk is Value creation of Firs t m ilk product

8. • Out of total production only 5 percent milk is
processed on hygienic lines whereas shelf life of
the remaining 95 percent un-processed milk is
very short and due to unavailability of proper
storage facilities most of milk produced goes
waste there are very few chillers available that
can store milk properly .

10. • Milk producers: Dairy farmers,
• Chill House: Cold Storage (To
increase shelf life)
• End user: Sweet Manufacturers,
Hotels, Bakeries,
Household cusumers,

11. Milk Statistics - Pakistan
50 mio Animals
26 mio Buffalo
24 mio
Cows
14 mio Farming Families
33 Billion Litres of Milk annually
(4th Largest producing country)

12. Pakistan Milk Production 31 bio. liters
Supply 30%
Rural Urban
Growing @ 70%
2-4%
19 bio liters 8.2 bio liters
7.00 5.00
6.00
5.00
4.00
3.00 1.00 1.20 1.00
2.00
1.00
0.00
Processed & Packaged Sweets & Khoya Gowalla Milk Unprocessed Milk
Shops
Demand
Growing @
10-15%
88% Loose M + sweets
ilk
Target area for first milk
1 Total milk production ~33 bio liters with 27 bio liters available for human consumption

13. Volume Evolution
1998
in million kg / year
From direct Ice
addition
to
modern cooling
2011

14. Punjab 50% 16.50 Billion liters
Sindh 40% 13.20
NWFP 07% 02.31
Baluchistan 03% 00.99
Total 100% 33.00

15. • Milk collection
• Quality milk /check
• Storage
• Chilling
• Sale

16. Fresh Milk Quality Checks
At Field Level: Village, Chiller, Main Center; Rapid screening tests
At Field Level: Village, Chiller, Main Center; Rapid screening tests
Organolaptic Fat
APT Density Physico-
COB Total Solid chemical
pH Protein Test
Acidity Sodium
MBRT
Sugar Urea
Starch Yoghurt Adulteration
Glucose CO3/HCO3 Test
Sorbitol Formalin
Ref. Index Am. Sulphate

17. CHILLERS

18. BULK MILK COOLER

19. Standard chillers

21. • Eco friendly profitable business. (go Green)
• Quality milk.
• Reduce layers of supply chain management.
Enhanced shelf life. (Reduce pressure of buyer and seller to
utilize instantly or waste)
• All time availability
 Incentive for milk producers to produce more.
• Reduce waste

22. • Initially 03 cold milk centers in lower Sindh each
at Jamshoro, T.M.Khan, & Hyderabad districts.
• Equipped with Quality & Quantity check instruments
• With 1000 liters capacity each.
• Chilling temperature 4 dec. centigrade
• Own transportation system to collect / deliver milk.
• Milk procurement as per fat content at given rates.

23. • Near to farmers
• Near to market
• Own transportation
• ERP system for centers connectivity and
feed back
• In time cash to the farmers
• Flexible in accommodating quantity

24. • Gawals collect 60-70 % of the total milk from
dairy farmers in vicinity of urban areas.
• 70 % of milk collected from them are distributed
to end user as home delivery.
• The milk produced from periphery near Big
towns are unable to fulfill the demand of civic
population.

25. • Insufficient availability .
• Unawareness of milk producers on:
– Commercial value of their product.
– Hygienic aspects.
– planning for balance of lean–flush inequalities.
– Insufficiency of latest and modern approved milk
utensils.
– Traditional approach rather than innovative.
– Lack of professional approach
– Cost effectiveness
– Microbial effect on milk quality

26. CHILLER’S ROLE
• To improve & maintain Milk Supplies
• Quality & Hygienic Orientation.
• Increase shelf life.
• Store milk for longer time when need ed.

27. • Lack of Modern and commercial dairy farms,
• Lack of dairy related education.
• Lack of financial and infrastructure facilities.
• Lack of quality check (most neglected aspect of the
whole system.)
• High open milk demand as compare to processed milk.
• An opportunity to the business to provide them pure
milk for better dairy business

28. • To manage waste of milk and proper awareness
about Supply management of milk. ( From
producers to end user)
• To provide on time cash and purchase facility to
dairy farmers.
• All time Quality milk availability for end user.
• Availability of professional and skilled manpower.
• Information and communication system for
connectivity between centers

30. Operational Plan
Project Details:
• Components: The major components of Bulk Milk Cooling Unit
comprises of bulk cooling tank of varying capacities (500 to 5000 litres),
DG set and accessories such as water heater, water storage tanks etc.
• Capacity :The capacity of Bulk Milk Cooling Units is ranging from 500
to 5000 litres.
• Equipment suppliers: The machinery should be as per BIS standards
and are presently manufactured in the country by De Laval, Fabtech,
IDMC, PRAJ, etc. Besides this many local fabricators are also
manufacturing good quality BMCUs at reasonable rates.
• Processing: The operations involve collection and chilling of milk to a
temperature of 4oC

31. Operational Plan-Plant
Setup

32. Operation Plan- ERP Design

33. • The management comprises of 4
partners having a share according
to their investment, they also take key
responsibilities in financial and
marketing and production matters.
• A total employees of center managers, chiller operators,
marketing and financial assistants, guards, keeper and
drivers.

34. Partners Profile
• Paras Sheeraz Abra
• Syed Ashiq Shah
• Syed Aijaz Shah
• Khurram Aziz Shaikh
MBA (SZABIST),
Certified Supply Chain Management (APICS)
Project Management

35. The following are considered regular customer of the
product (Chilled milk) subject to agreement
• Sweet Manufacturers
• Hotels, clubs / Gymkhanas
• Bakeries
• Milk retail shops / General store
• Milk Suppliers for home delivery

36. Above the Line (ATL)
• Electronic and Print Advertisements (Through
Media Partners on TV, News papers and FM)
• Billboards, Pamphlets
• Website Promotions and Marketing
Direct Marketing
• Personal contacts / Visits
• Incentives
• Assurance of quality and regular
supply.
Below The Line (BTL)
• Kiosk Setup in different places (Hyper market,
• Industrial Areas)
• Events for brand promotion (future plans)

37. • Billboard & Streamers
Initially, about 6 hoardings to
be placed in the city of
Hyderabad, T.M, Khan and
Kotri on prime locations.
• Hoardings & Streamers at
Hyderabad supermarkets
such as Zain, Saakrani,
Hamid Delton, Garrison etc.

38. • The First milk is looking forward to enhance
business units.
• To provide incentives, small loans to dairy
farmers to meet routine requirements.
• To arrange trainings, awareness programs for
dairy farmers to increase cattle farming and
curing cattle's in unpredictable weather
conditions/diseases.
• The First milk also anticipate for establishing
dairy spots and other value added or by
products by milk holders.

39.  The unpredicted situations of the country may lead
to business limitation, like strikes and other
political influences.
 The floods and other natural calamities might
hinder production and business revenues in
return.
 Energy crises of the state might increase
operational expenses.

40. • The chill centers could be converted in
to dairy business or processors.
• The plan b includes the dairy product
launch through its bulk milk storage.
• The dairy product launch through its
bulk milk storage or bottle milk.

41. An Estimate of milk collection from near by 08 villages, average no of buffalos at
each form house or diary form
Avrg No of No of dairy
Total milk
Average we
Name of Buflos, at mdm forms / form
production /
collected / Price / kilo or
Total Amount
Village / place size d.form / houses, Milk day purchase liter
buffalo /day
house Producers
Kilo/liters
Siddiqe
shoro 5 5 44 1100 300 52 15600
Village 1 4 6 38 912 250 52 13000
Village 2 6 3 49 882 250 52 13000
Village 3 7 5 60 2100 400 52 20800
Village 4 3 8 23 552 250 52 13000
Village 5 8 4 30 960 300 52 15600
Village 6 9 3 45 1215 300 52 15600
Village 7 10 2 40 800 350 52 18200
8521 2400 52.00 124800
Invetment cost Rs /day 124,800
Sale price / kilo or lit 61

42. First Milk Cold Milk Centers
Profarma Income Statement yr 2012
.. year 1 year 2 year 3
sales 52,704,000 54,432,000 56,160,000
cost of goods sold 44,928,000 45,792,000 46,656,000
gross profit 7,776,000 8,640,000 9,504,000
operating expenses:
salaries 1,692,000 1,752,000 1,956,000
diesal 600,000 650,000 700,000
h.rent 400,000 450,000 438,000
utilities 450,000 480,000 510,000
Marketing Exp 300,000 200,000 150,000
depreciation vehicle 200,000 200,000 200,000
depreciation tanker fitter
sh. 400,000 400,000 400,000
fuel.exp 200,000 180,000 250,000
maintenance exp 90,000 100,000 100,000
misc exp 100,000 90,000 110,000

43. total Op cost 4,432,000 4,502,000 4,814,000
Operating Profit 3,344,000 4,138,000 4,690,000
interes 131,963 510,888 480,901
tax 117,040 144,830 164,150
net income 3,094,997 3,482,282 4,044,949
less salaries to
partners(6% on
cap) 864,000 864,000 864,000
Division of Net
Income 2,230,997 2,618,282 3,180,949
To paras 557,749 654,570 795,237
To S.Ashiq shah 557,749 654,570 795,237
To S.Aijaz ali shah 557,749 654,570 795,237
To Khuram 557,749 654,570 795,237

44. First Milk
Profarma Statement of Partner's Equity
year 1 year 2 year 3
Balances 1,200,000 1,200,000 1,200,000
Add.Net
Income for the
Year 2,230,997 2,618,282 3,180,949
total balance 3,430,997 3,818,282 4,380,949
Less: Drawings 1,115,498 1,309,141 1,590,474
Balances at
Year End 2,315,498 2,509,141 2,790,474

45. First Milk Cold Milk Centers
Profarma Balance Sheet
Balance Sheet
year 1 year 2 year 3
Asset
cash 120,200 300,800 413,440
A/c Recievable 150,000 129,000 219,960
inventory 124,800 120,200 151,600
chillers 3,145,000 3,145,000 3,145,000
furniture n fixture 100,000 100,000 100,000
Generators 600,000 600,000 600,000
tools and
equipments 250,000 250,000 250,000

46. vehical
1000000
less dep. 200000
(str.m) 800,000 600,000 400,000
tanker fitted shahzor
2000000
less dep. 400000
(str.) 1,600,000 1,200,000 800,000
Total assets 5,290,000 5,245,000 5,280,000
Liabilities
a/c Payable 90,000 45,000 80,000
bank loan 4,000,000 4,000,000 4,000,000
total liabilities 4,090,000 4,045,000 4,080,000

47. Partner's Capital
Paras Sheeraz 300,000 300,000 300,000
S.Aijaz Ali Shah 300,000 300,000 300,000
S.Ashiq Shah 300,000 300,000 300,000
khurram 300,000 300,000 300,000
Retained Earnings 1,115,498 1,309,141 1,590,474
total partner's
capital 2,315,498 2,509,141 2,790,474
less drawings 1,115,498 1,309,141 1,590,474
total liabilities &
paid in capital 5,290,000 5,245,000 5,280,000

48. Amortization Schedule
Date Interest Principal Balance
2012 $131,963.10 $48,983.60 $3,951,016.40
2013 $510,888.04 $212,898.76 $3,738,117.64
2014 $480,901.19 $242,885.61 $3,495,232.03
2015 $446,690.69 $277,096.11 $3,218,135.92
2016 $407,661.63 $316,125.17 $2,902,010.75
2017 $363,135.31 $360,651.48 $2,541,359.27
2018 $312,337.46 $411,449.34 $2,129,909.93
2019 $254,384.71 $469,402.09 $1,660,507.84
2020 $188,269.30 $535,517.50 $1,124,990.35
2021 $112,841.52 $610,945.28 $514,045.07
2022 $28,795.02 $514,045.07 $0.00