Abstract dairy companies all over the world face a number of changes and challenges which are forcing them to reconsider strategies. the most important challenge is growing demand of dairy products. in many predominantly in developed and developing country the dairy market is the most heavily regulated markets. currently india produces around 123.7 million tones of milk every year and the same is processed in milk processing plants. (source: department of animal husbandry, dairy & fisheries, ministry of agriculture, goi) raw milk is collected from almost every part of the country and there is a wide scope for small scale processing plants. milk can be converted to various dairy products such as cheese, curd, ice-creams etc. as the per capita milk consumption in the country is rising the need to produce more amount of milk is gaining priority. as the milk processing industries extend their production horizons the energy consumption in these and the upcoming industries will tend to rise. in accordance with the alternative and innovative means adopted for the milk processing plants one must also consider various energy conservation techniques in the existing plants in operation. the major applications of refrigeration systems in the industry are in the process cooling of milk and other dairy products, the cold bulk storage of raw and pasteurized milk, the freezing of ice cream, and the in generation of cold air for cold storage of almost all dairy products.