Parag Milk Foods – Palamner Retort Expansion

Project Info

  • Construction Date

    March 2019

  • Category

    Engineering Design, Project Management

  • 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, wherein one of the key growth drivers is the Retorted Flavored Milk Products segment, which anticipates four fold volumes rise in 1-2 years. Therefore, it was envisaged to expand the production capacities to cater to the rising demand, and PMG Team was engaged to study the existing infrastructure and develop the stage-wise Masterplan and subsequent detail engineering for a holistic restructuring, upgradation and expansion of the Retorted Products Production facility. Implementation of the concepts of food safety and hygienic engineering, along with Lean Production and Zero Rework, were key expectations from the Client Management.


PMG Deliverables

  • Develop a holistic Retort Facility Expansion strategy utilizing most of the existing infrastructure, but also restructuring several areas for a holistic future ready high-capacity Retort Production Facility.
  • 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 Building (expansion) to seamlessly blend in existing factory buildings, and planning man-material movement.
  • .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.

The existing Retort Facility was upgraded on several different levels, of Lean Design, Food Safety, Hygienic Engineering, Zoning and Air Handling specific to facility-areas requirements, reduced manual operations, 100% traceability, modular expansion-friendly design decisions, and others. Several factory areas, which weren’t fully utilized, e.g. 8 M high bay areas being used for Electrical Panel installation, for considerable factory building used for Can Reception, etc. were restructured for give best value for capex already invested, in addition to removing food safety issues of cross-contamination and bad zoning.