CASE STUDIES

Dairy &  Milk Industries 

Verka Dairy Achieves Annual Savings of ₹42 Lakhs by Converting from Furnace Oil to LPG

Executive Summary

Verka Dairy, one of Punjab’s leading dairy brands, sought a cleaner, more efficient fuel solution for its steam generation process following the industry’s shift away from furnace oil. Operating a 2 TPH Forbes Marshall steam boiler, the company aimed to reduce operating costs, improve boiler efficiency, and create a healthier working environment.

Pune Gas engineered and implemented a complete LPG conversion system, replacing furnace oil with LPG. The transition delivered substantial fuel cost savings, higher boiler efficiency, lower emissions, reduced maintenance, and a payback period of just 8.5 months.

Key Stats

Weekly Fuel Savings
0 KG
Daily Fuel Savings
0 KG
Annual Cost Savings
0 Lakhs/Year

Before (Furnace Oil)

Monthly
  • 2 TPH Forbes Marshall steam boiler operating on furnace oil
  • Boiler efficiency: ~65%
  • Running cost: ₹2,26,080 per day
  • Pumping and pre-heating systems required
  • High emissions, soot and poor workplace air quality

After (LPG System by Pune Gas)

Monthly
  • Boiler efficiency improved to ~87%
  • Running cost reduced to ₹2,16,552 per day
  • Monthly savings: ~₹3.5 Lakhs
  • Annual savings: ~₹42 Lakhs
  • Payback period: ~8.5 Months
  • Carbon monoxide emissions reduced from 170 ppm to below 40 ppm

Client Overview

Established in 1973, Verka Dairy is one of Punjab’s most recognised dairy brands, manufacturing a wide range of products including milk, ghee, cheese, skimmed milk powder and flavoured milk. The company serves customers across Punjab, Haryana, Himachal Pradesh, Jammu & Kashmir, Northeast India, and several international markets.

The Challenge

Operating on furnace oil presented several operational and environmental challenges:

  • High and increasing fuel costs
  • Lower boiler efficiency affecting energy utilisation
  • Pumping and pre-heating systems increasing maintenance requirements
  • Heavy emissions and poor workplace air quality
  • Dependence on a fuel no longer aligned with evolving environmental regulations

The existing fuel system limited operational efficiency while increasing long-term operating costs.

The Solution

Pune Gas designed and implemented a complete LPG conversion solution for Verka Dairy’s steam generation system.

The solution delivered:

  • Complete conversion from furnace oil to LPG
  • LPG storage and distribution system
  • High-efficiency gas burner installation
  • Elimination of pumping and pre-heating systems
  • Engineered pipeline network with safe and reliable LPG distribution

Measured Savings and Operational Gains

  • Fuel Cost Reduction
    Achieved monthly savings of approximately ₹3.5 Lakhs, resulting in annual savings of ₹42 Lakhs.
  • Boiler Efficiency Improvement
    Boiler efficiency increased from approximately 65% to 87%, improving thermal performance and reducing energy losses.
  • Cleaner Operations
    Carbon monoxide emissions reduced from 170 ppm to below 40 ppm, significantly improving workplace air quality.
  • Operational Efficiency
    Elimination of pumping and pre-heating systems reduced maintenance requirements while improving steam generation efficiency and reducing process time.
  • Investment Returns
    The total investment of ₹30 Lakhs was recovered within approximately 8.5 months through operational savings.

Execution

Following a detailed technical assessment, Pune Gas designed, supplied, and commissioned a complete LPG infrastructure for Verka Dairy, including the LPG bank, pipeline network, and gas burner system. The project enabled a seamless transition from furnace oil to LPG while ensuring safe, reliable, and uninterrupted boiler operations.

Conclusion

By converting its steam generation system from furnace oil to LPG, Verka Dairy significantly reduced operating costs while improving boiler efficiency, workplace safety, and environmental performance. The project demonstrates how a well-engineered LPG infrastructure can deliver measurable financial returns, cleaner operations, and long-term sustainability for large-scale dairy processing facilities.