introduction& project in brief
we are going to establish an integrated milk processingplant at bhopal india under hub and spoke model. We will be signing mou with govt. Of mp for this project .under theproposed model we are going to establish small dairy units and collectioncenters in the various places of vidisha,raisen and shahajapur districts..their are some ten thpousand small help groups which are identified for theestablishment of small dairy farms in these areas. The whole concept is tocollect milk from these small units of different areas of these district placesand then centrally collected in bhopal where we setup a 50000 litres milkprocessing plant. In this plant we process the milk and convert the milk in tovarious products like butter, clarified butter & flavoured milk etc. In thefirst phase some 300 small units will be setup and they produce 9000 litres ofmilk per day in the later phases we have a target to setup some 2000 smallunits in these areas. These units will give production of 60000 litres per day.we will be providing training, technical assitance and providing loan from bankto setup the unit. From these units we have to make buy back arrangements sothat the unit owners dosen’t face problem to sell product and our company havealso get a permanent supply channel of the raw material from these units. As weprovide the buy back arrangement and this would be for 5 years with these smallunits to us because we provide gurantee to bank that we have to take theproduct from these small units for next 5 years till the repayment of the bankloan. So there is binding for samll units to sell there product directly to us.the proposed project is relatively a good model for govtof mp and our organization because we are providing a long term financialsustainability to their small help group’s through enterprenurship and we gotraw material on long term basis.as we are limited company so we take the opportunity togo for public issue so that we may get the public investment to expand theproject in the othe area’s also and the joint venture partner has anoppurtunity to exit from the venture any time.