Case Study on SS Dairy Milk Limited

Topics: Milk, Variable cost, Pasteurization Pages: 43 (8024 words) Published: July 29, 2010

1.1 Background:

Bangladesh is a densely populated developing country. As the country is mainly an agro-based one, the agro-based industrial development might be the better future of our economy.

But it is a matter of regret that at this advanced age of science and technology, Bangladesh cannot compete in the international market with its agro-based products mainly due to the lack of advancement in agriculture. As a result, foreign agricultural commodities are playing a dominating role in our market. Consumers prefer to buy imported commodities at much higher prices because of various reasons.

As for the milk based products, there are only a very few companies who are fighting in the market with a limited number of items against a full range of foreign items. These foreign items have various product features such as packaging, flavor, taste, quality, durability, etc. suited to meet different customer options. Consequently, the buying decision of the customers goes in favor of the foreign items even if they are charged much higher prices.

With this point of view, I have decided to establish a most modern Milk Processing plant to be located at Fuldighi, Bogra Sadar, Bogra, which is meant for the production of various milk based products that will meet different options of the consumers and maintain international standard and quality. The named of my company would be “SS Dairy Milk Limited”

1.2 Objective:

The objective of the study on SS Dairy Milk Limited is to assess the feasibility of its Milk Processing project in terms of market demand as well as technical, financial, economic and environmental viability.

1.3 Scope of works:
The study on the proposed project was limited to the following aspects: a. To assess the financial and technical viability of the project. b. To analyze the market studies to assess market demand and prospect of the proposed Milk Processing project.

c. To assess the socio-economic and environmental implication of the project.

1.4 Background of the Project:

SS Dairy Milk Limited has been founded by its Directors mainly because:

- Agriculture sector has appeared to be the most attractive sector in Bangladesh. It is predominantly agriculture-based economy and yet almost no organized industry is in existence.

- The Government of Bangladesh is encouraging the milk industry and giving high priority for the establishment of milk projects due to the reason that it will make import substitution significantly and that there is an increasing demand of the milk products in the country.

- And most importantly, we have got keen interest to devote themselves in this sector. We have acquired considerable knowledge and experience in similar business and have got adequate management capability to run this type of industry successfully.


2.1 Name and location of the Project:
The proposed project will be set up under the name and style of “SS Dairy Milk Limited” and located at Fuldighi, Bogra Sadar, Bogra.

The location of the project enjoys all infrastructure facilities including an excellent communication network.

The project location is considered to be very much suitable for the project from different perspectives.

2.2Nature of the project:
The project envisages setting up of a most modern Milk Processing Plant which will process fresh cow-milk to produce various milk based products of international standard and quality with state-of-the-art packaging.

2.3 Size & Capacity:
At 100 percent level of capacity utilization, the proposed milk plant will process 30,000 liters of fresh cow-milk per day. The daily production output of the plant...
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