Parag Milk Foods – Palamner Factory Reorganization

Project Info

  • Construction Date

    February 2019

  • Category

    Engineering Design, Value Engineering

  • Client

    Parag Milk Foods, Palamner, INDIA

Project Scope

The second factory of Parag Milk Foods at Palamner, Andhra Pradesh has seen a fast growth in terms of Production Volumes, rising from a 20,000 L / day to 800,000 L / day Milk Processing. The expansions had been incremental, lacking a Masterplan. Now the forecasts entail milk processing capacity rising to 2,000,000 L / day in next 1-2 years. Therefore, it was envisaged to engage PMG Team to develop the Masterplan for a holistic reorganization and expansion of the factory. Implementation of the concepts of food safety and hygienic engineering, along with Lean Production and Zero Rework, were key expectations from the Client Management.

The current factory has Liquid Milk, Curd, Paneer, Flavored Milk and Variants, UHT Milk and Variants – all SKU’s, Butter, Ghee, and Powder Variants –  SMP, WMP, Dairy Whitener, and others.

The expansion projects include a New Evaporator and Dryer, New UHT Milk and Variants Production Lines, along with doubling of Capacities of Milk Reception, Processing and Butter/ Ghee Sections.

PMG Deliverables

  • Develop a holistic Factory Masterplan, which should be pragmatic but also Lean and Systematic.
  • Develop a Work Breakdown Structure (WBS) for all works, factor-in the sub-project Scope, Schedule, Cost, and other aspects, and prioritize the several works inline with Parag Sales Volume Projections and Business Demand/ Viability.
  • Develop the Proposed P&IDs, Factory Layouts, and Interfacing between various sections. Upon go-ahead by Management, Detail Engineering for successful and first-time right execution.
  • Design a New Milk Reception @ 2,000,000 L / day Capacities, New Centralized CIP System for the Factory, New PM and FG Warehouse, in addition to section reorganization for increase in capacity (Butter, Ghee, Storage, Milk Processing and Storage, etc.)
  • .Fully integrated SCADA based Factory Control System with 100% Traceability and Historical Logging for 12+ months, with MIS modules and IOT enabled infrastructure, towards a future ready factory.

Differentiated Value Creation

One of the core competencies of PMG is the ability to understand deeply the design, workings, issues, and potential of an existing factory, in a relatively short duration, and identification of the path of least cost, schedule and constraints towards upgradation or expansion meeting the local and global standards on food safety and hygienic engineering. Having worked with several co-manufacturers of Nestle, Mondelez, PepsiCo, Abbott, Danone, and similar global MNC’s, and assisted them in closing the audit/ general gaps in record time for compliance, PMG Team is well qualified to lead and support any Brownfield Expansion or Re-organization project in Food Industry.

A key reason for our successful approach is the Agile Methodology, well integrated in PMG Design Process. Instead of formulating a grand design, only to present on the last day to plethora of stakeholders, to solicit (more often than not), the basis of said design or certain part of design, is simply not viable/ practical, PMG Team started with the big picture and incrementally made finer improvements, with close communication and feedback from the stakeholders involved.

At PMG, we believe in maximizing Value for invested Capex, and this core value drives all our design decisions. Also, we are not afraid to change the foundation, if we believe the end structure would be better on a re-designed foundation. For example, our team was able to mobilize management committment from Parag Milk Foods, towards developing a completely new Milk Reception instead of expanding the existing one, and was also able to expand the Retort Section, instead of a complete new construction – basis the associated cost-benefits and long term returns.