Yogurt Manufacturing Project Report, Plan

Introduction to Yogurt Manufacturing Project Report, Business Plan: Are you captivated by opening a yogurt production company? If you need a sample frozen yogurt production business guide? Then here you will check a model of starting a frozen yogurt production company.

Most businesses that are associated with foodstuffs and snacks sustain longer since their requirement is continuous for these products. Even the Yogurt making business is not an exception. 

A step by step guide to Yogurt Manufacturing Project Report

Yogurt Manufacturing
Yogurt Manufacturing (Pic source: pixabay)

When you plan to start a profitable business as an entrepreneur, a frozen yogurt production venture is a proper way to gain profits with less capital.

Business plan for Yogurt Manufacturing Business

To start Yogurt Manufacturing Business, you need to craft a perfect business plan by considering all the points below:

  • Market potential
  • Basis and presumptions
  • Implementation schedule
  • List of approvals required
  • Raw materials required
  • List of machinery and equipment
  • Manufacturing process
  • Project economics
  • Profitability

Basis and Presumptions of Yogurt Manufacturing Business

The Yogurt Manufacturing Project Profile relies on the following assessments:

  • Working hours/shift: 8 hrs.
  • No. of shift/day:1
  • Working days: 300
  • Labor expenses: as per the State Government’s Minimum Wages Act.
  • Rate of interest: 15% per annum
  • Costs of machinery and equipment: Taken based on a particular dealer
  • Value of raw material: As per local market Packing material/others rate (on wholesale rate)
  • Land: owned
  • Building Construction
  • Break-even point will be estimated on a full capacity utilization basis
  • Pay-back time is 5 – 7 years

Implementation schedule of Yogurt Manufacturing Business

The project implementation schedule of Yogurt Manufacturing Business

  • Project preparation: 0-1 month
  • Location selection, acquisition of 1-2 months land and land development
  • Loan Sanction: 1-3 months
  • Building construction: 3-4 months
  • Connection of electric supply and water: 4-5 months
  • Obtaining machinery: 5-6 months
  • Electrification & installation:  6-7 months
  • Recruitment of staff and workers: 7-8 months
  • Trial run can be initiated in 8-10 months
  • Commercial production could start from 10-11 months

Market potential of Yogurt Manufacturing Business

You must investigate to adopt precisely what people are looking forward to. This will also aid you to know if the frozen yogurt business will withstand itself in your area. One of the vital aspects that determines success in any business is identifying what customers is interested in and how they need it and delivering it to them the way at a reasonable price so that they can easily afford it at least in the starting days of the business till the brand gets recognized and people get to distinguish about it.

During your survey, you may check with some fascinating data that will aid raise your business. Perhaps there is intact demand for definite diversities of frozen yogurt for instance lactose-free frozen yogurt or frozen yogurt prepared from local, free-range milk. As a smart entrepreneur, you must find out all the possible risks and try to overcome those by taking suggestions from experts in that segment.

Location or area required to start Yogurt making business 

The location plays a key role in deciding the success or failure of your business. So, one should properly find out the suitable location and identify the appropriate region for the business. It is even profitable, but with small margins, if you plan for a retail component for your business. 

Registration, license, and permissions required to start Yogurt Manufacturing business in India

It is very significant to select the proper organizational pattern of your business. There are possibilities to register as a sole proprietorship or as a Limited Liability Company? When registration is over think of the relevant Business Name and get registered by contacting the associated organization according to your state guidelines and obtain all necessary approvals and licenses.

Below you can check out a few of the licenses essential before starting the Yogurt Making Business in India

  • Registration of firm
  • GST registration 
  • Trade license
  • Pollution certificate
  • MSME/SSI registration
  • EPI and ESI registrations
  • Trademark  
  • FSSAI registration 
  • IEC code
  • FPO act

Machinery and equipment required to start Yogurt making business

You must have the facility of a store or warehouse, a production location, and a small office. Since the land purchasing will require much capital, you can either plan for lease or establish on your land if you own land in an appropriate location that is suitable for the unit. In the initial days, you can have all your component provisions in a single region. Later you may think of separating them when you plan to expand and you have handsome profit.

It is vital to buy the major tools and resources needed to start your frozen yogurt production business. These include soft serve dispensers, display freezers, furniture, blenders, and yogurt-making machinery.

Raw materials required to start Yogurt Manufacturing business

Contact some prevalent suppliers of the raw materials and obtain the necessary ingredients that you need for preparation. It is recommended to keep the contact with extra suppliers as well so that you will not face any problem when there is a shortage of stock by one of your main suppliers. 

Yogurt Manufacturing Project Report/ Economics of small-scale Yogurt Manufacturing Business

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Economics of Yogurt Manufacturing
Economics of Yogurt Manufacturing (Pic source: pixabay)

Fixed Capital

a. Land & Building: 600 Sq. ft @ Rs. 10,000 Rented

b. Machinery and Equipment: Rs. 4,25,000

Working Capital

A. Staff and Labour: Rs. 1,72,000

B. Raw material per month: Rs. 1,76,675

C. Utilities per month: Rs. 8,000

D. Other Contingent Expenses per Month: Rs. 1,75,000

Total Working Capital per month = A + B + C + D = 1,72,000 + 1,76,675 + 8,000 + 1,75,000 = Rs. 5,31,675.

Total Capital Investment

Fixed capital = Rs. 4,25,000

Working Capital (on 3 months basis) = Rs. 15,95,025

Total = Rs. 20,20,025

Financial analysis of Yogurt Manufacturing business

a. Cost of Production (Per Year): Rs. 66,24,603

b. Turnover (Per Annum): Rs. 72,00,000

c. Net Profit Per Annum:

Net Profit = Turnover per Year – Cost of Production = 72,00,000 – 66,24,603 = Rs. 5,75,397

d. Net Profit Ratio = (Net Profit per year / Turnover per Year) X 100 = (575397 / 7200000) X 100 = 7%

e. Rate of Return = (Net Profit per year / Total Investment) X 100 = (575397 / 2020025) X 100 = 28.48%.

Break-Even Point (B.E.P)

Interest on investment @ 10%: Rs. 2,02,003

40% of wages and salaries: Rs. 68,800

40% of other expenses (except rent): Rs. 70,000

Rent: Rs. 1,20,000

Total: Rs. 4,60,803.

Break- Even Point (B.E.P.) = [Fixed Cost/ (Fixed cost + Profit)] X 100 = 460803/ (460803+575397) X 100 = 460803 / 1036200 X 100 = 44.47 %

Marketing strategies to promote your Yogurt product

To sell your Yogurt product, firstly, you need to register the product online on B2B websites and B2C websites. You can even distribute some samples in the nearby supermarkets, or in the wholesale markets where your product gets well purchased.

B2B websites: The websites like –  

  • Alibaba,
  • Indiamart,
  • Tradeindia,
  • ExportsIndia will take the bulk orders for your Yogurt product.

B2C websites: To sell the products directly to the customer, you may also market in the well-established websites like–

  • Amazon,
  • Snapdeal,
  • Flipkart, etc. 

Try new ideas in the starting and just concentrate on promoting your business. Always remember that your business profits will be raised depending upon the quality you provide to the customers.

Conclusion of Yogurt Manufacturing Project Report

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Conclusion of Yogurt Manufacturing
Conclusion of Yogurt Manufacturing

If you wish to start a profitable business venture, then Yogurt Manufacturing Business is an excellent opportunity to start with. Just, start thinking of an idea to give a variety, healthy and tasty yogurt that will attract the customers. Always remember that the quality product will attract more customers. Remember that at the initial stages, it takes time to get your brand registered so plan for few marketing strategies and use social media to promote your product. If once it gets registered your product will go into the hype. 


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