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    Value Added Spices

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    rajwants921620
    This document proposes establishing a value-added spice manufacturing unit in Madhya Pradesh, India. Spices are widely used in Indian cuisine and there is growing demand for specialty blended spices. The proposed project would source raw spices from MP, clean, grind, sieve and precisely mix them into specialty blends using machines like grinders, mixers and sealing machines. The total investment is estimated at Rs. 160 lakhs, which would be funded through equity, subsidies and loans. The unit aims to produce 480 metric tons annually and expects to break even in the first year with an internal rate of return of 30% and payback period of 5 years.

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    © All Rights Reserved
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    Value Added Spices

    Uploaded by

    rajwants921620
    70 views5 pages
    This document proposes establishing a value-added spice manufacturing unit in Madhya Pradesh, India. Spices are widely used in Indian cuisine and there is growing demand for specialty blended spices. The proposed project would source raw spices from MP, clean, grind, sieve and precisely mix them into specialty blends using machines like grinders, mixers and sealing machines. The total investment is estimated at Rs. 160 lakhs, which would be funded through equity, subsidies and loans. The unit aims to produce 480 metric tons annually and expects to break even in the first year with an internal rate of return of 30% and payback period of 5 years.

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    Spices

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    This document proposes establishing a value-added spice manufacturing unit in Madhya Pradesh, India. Spices are widely used in Indian cuisine and there is growing demand for specialty blended spices. The proposed project would source raw spices from MP, clean, grind, sieve and precisely mix them into specialty blends using machines like grinders, mixers and sealing machines. The total investment is estimated at Rs. 160 lakhs, which would be funded through equity, subsidies and loans. The unit aims to produce 480 metric tons annually and expects to break even in the first year with an internal rate of return of 30% and payback period of 5 years.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    70 views5 pages

    Value Added Spices

    Uploaded by

    rajwants921620
    This document proposes establishing a value-added spice manufacturing unit in Madhya Pradesh, India. Spices are widely used in Indian cuisine and there is growing demand for specialty blended spices. The proposed project would source raw spices from MP, clean, grind, sieve and precisely mix them into specialty blends using machines like grinders, mixers and sealing machines. The total investment is estimated at Rs. 160 lakhs, which would be funded through equity, subsidies and loans. The unit aims to produce 480 metric tons annually and expects to break even in the first year with an internal rate of return of 30% and payback period of 5 years.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    1

    1.1

    VALUE-ADDED SPICES
    Introduction

    Spices are very common in Indian cuisine and variety of spices is used every day. In the daily
    food or snack preparations, spices like red chilly powder, turmeric powder or black pepper
    powder are used regularly. But this note describes some speciality spices which are prepared
    from combination of several spices and offer special taste. Many special vegetables or
    snacks are prepared with the help of such speciality spices or value-added spices and use of
    such spices is increasing in individual households, restaurants and other eateries, during
    many social and religious functions etc. This is a versatile product and can be manufactured
    in many states but this note considers MP as the preferred location.
    1.2

    Objective

    The primary objective of the model report is to facilitate the entrepreneurs in understanding
    the importance of setting up unit of Value added spices, technology and financial parameters
    of various components for preparation and submission of project proposal to bank for
    sanction of long term loan. This model report will serve as guidance to the entrepreneurs on
    starting up such a new project and basic technical knowledge for setting up such a facility.
    1.3

    Raw Material Availability

    The total production of spices in Madhya Pradesh in year 2004 05 is to the tune of
    315210.1 MT. it is produced on an area of 265811 ha.
    1.4

    Market Opportunities

    The market for such spices is rapidly growing. Changing lifestyles, fast life and need to work
    by both husband and wife has given a major boost to this market. Everyone wants some
    change in daily food with spicy taste and that is why use of speciality spices is increasing.
    There are some established national brands like MDH, Everest, Badshah etc. who are in the
    process of capturing the urban and semi-urban markets. But their products are costly on
    account of high overheads. Rural and semi-urban market cannot always afford these costly
    products. Hence, there is a fairly good scope for a small scale unit to penetrate this market
    segment by offering competitive prices. Advertisement in local media and attractive discounts
    to the retailers will be crucial.

    Project Profiles - MP Agros

    Global AgriSystem Pvt. Ltd.


    Your Partner in Agri-business

    1.5
    1.5.1

    Project description
    Manufacturing Process

    Unground spices are cleaned to remove impurities and then washed. Once they are dried,
    they are pulverised in mixer grinder. Spices in powder form are passed through sieves to
    remove impurities and to obtain uniform mesh size. Finally, several spices are fed to the pin
    mill in the proportion as per the recipe and are thoroughly mixed to make speciality spices. It
    is imperative to have exact recipe and mix various ingredients in the exact proportion as the
    final taste depends upon it. The process loss is around 5% to 7%.
    1.5.2

    Availability of know how and compliances

    CFTRI, Mysore, has successfully developed the technical know-how. Compliance with PFA
    Act is necessary and AGMARK is advisable.
    1.5.3

    Capacity of Plant

    The total capacity of the plant is 480 MT per annum.


    1.6

    Project component and cost

    Particulars
    LAND & BUILDING
    Land
    Land Development
    Land Area
    Building
    Production Block
    Main Production Area
    Store cum packing room
    Contingencies
    PLANT & MACHINERY
    Spice grinding machine
    Disintegrator
    Sieves
    SS Stigma Mixer
    Frying Pan
    Heat Sealing machine'
    Weighing Scale
    Contingencies
    MISCELLANEOUS FIXED ASSETS
    Misc. Plant and machinery
    Contingencies
    PRE-OPERATIVE EXPENSES
    Establishment
    Professional Charges
    Security Deposits
    TOTAL

    Project Profiles - MP Agros

    Unit
    SqM

    SqM
    SqM

    LS

    Qty

    Cost/unit

    1,500

    250.00

    Total
    66.25
    3.75

    1,500

    500.00

    7.50

    750
    250
    10%

    5,000.00
    5,000.00

    40
    10
    40
    20
    20
    10
    20
    20%

    37,500
    40,000
    6,250
    50,000
    20,000
    8,000
    10,000

    1
    20%

    350,000

    1
    1
    1

    1,218,000
    100,000
    240,000

    37.50
    12.50
    5.00
    45.96
    15.00
    4.00
    2.50
    10.00
    4.00
    0.80
    2.00
    7.66
    4.20
    3.50
    0.70
    15.58
    12.18
    1.00
    2.40
    131.99

    Global AgriSystem Pvt. Ltd.


    Your Partner in Agri-business

    1.7

    Plant and Machinery

    Spice grinding machine, Disintegrator, SS Stigma Mixer, Sieves, Heat Sealing machine etc
    are the main machineries required to manufacture value added spices. The cost of the
    machinery is around Rs. 45.96 lakh.
    1.8

    Building

    The development of main production building will cost around Rs. 55 lakhs. This building will
    have two main areas, one is the main production area and another is store cum packing
    room.
    1.9

    Miscellaneous Assets

    Furniture and fixtures, aluminum top working tables, electricals, exhaust fans, storage racks
    and bins, plastic crates, SS utensils etc. shall be required for which a provision of Rs. 4.20
    lakh is made.
    1.10 Preliminary & Pre-operative Expenses
    A provision of Rs. 15.58 lakhs would take care of pre-production expenses like
    establishment, professional charges, security deposits etc.
    1.11 Working Capital Assessment
    ITEMS
    STOCK OF RAW MATERIAL & PACKING
    MATERIAL
    SUNDRY DEBTORS

    Year 1

    TOTAL
    MARGIN
    MPBF
    INTEREST ON WC

    Year 3

    56.16
    56.16
    112.32
    28.08
    84.24
    9.27

    Year 5

    86.40
    86.40
    172.80
    43.20
    129.60
    14.26

    86.40
    86.40
    172.80
    43.20
    129.60
    14.26

    1.12 Means of Finance


    EQUITY CAPITAL
    MOFPI SUBSIDY
    TERM LOAN
    FINANANCIAL INSTITUTIONS
    -Payable half yearly Installments
    TOTAL

    Project Profiles - MP Agros

    25%

    50.00

    10

    10.00%
    6.40

    35.00%
    25.00%

    56.02
    40.02

    40.00%

    64.03

    100%

    160.07

    Global AgriSystem Pvt. Ltd.


    Your Partner in Agri-business

    1.13 Cash flow statement


    PARTICULARS
    SOURCES OF FUNDS
    EQUITY CAPITAL
    SUBSIDY
    NET PROFIT
    (INTEREST ADDED BACK)
    DEPRECIATION
    PRELIMINARY EXP.W/O
    INCREASE IN TERM LOAN
    INCREASE IN BANK BORROWINGS-WC

    Year 1

    TOTAL

    Year 3

    Year 5

    Year 7

    14.85

    38.21

    36.35

    34.81

    7.07
    2.23
    84.24
    108.39

    7.07
    2.23
    12.96
    60.46

    7.07
    2.23
    45.65

    7.07
    2.23
    44.10

    1.14 Projected balance sheet


    PARTICULARS
    LIABILITIES
    EQUITY CAPITAL
    RESERVES & SURPLUS
    TERM LOAN
    BANK BORROWINGS-WC

    Year 1

    TOTAL

    Year 3

    Year 5

    Year 7

    56.02
    39.20
    57.63
    84.24
    237.10

    56.02
    72.34
    32.03
    129.60
    289.99

    56.02
    113.05
    6.43
    129.60
    305.11

    56.02
    154.94
    (0.00)
    129.60
    340.56

    Year 1
    374.40
    350.25
    301.20
    49.05
    24.15
    (0.81)
    (0.81)

    Year 3
    576.00
    528.50
    460.59
    67.90
    47.50
    19.79
    19.79

    Year 5
    576.00
    530.35
    459.98
    70.37
    45.65
    20.49
    20.49

    Year 7
    76.00
    531.90
    459.37
    72.53
    44.10
    20.55
    20.55

    1.15 PROFITABILITY STATEMENT


    Particulars
    INCOME
    EXPENDITURE
    VARIABLE
    FIXED
    GROSS PROFIT
    PROFIT BEFORE TAX
    RETAINED PROFIT

    1.16 Key Indicators


    NET PRESENT VALUE at current Inflation (Rs. in lakhs)
    INTERNAL RATE OF RETURN %
    AVERAGE DSCR
    BREAK EVEN POINT %
    PAY BACK PERIOD ( YEARS)

    213.05
    30.01
    1.64
    82.38
    4.99

    1.17 Manpower Requirement


    PARTICULARS
    SUPERVISORY STAFF
    MANAGER
    PRODUCTION SUPERVISORS
    MARKETING OFFICER
    WORKERS
    SKILLED WORKERS
    HELPERS

    Project Profiles - MP Agros

    NO.
    1
    3
    2
    6
    10

    Global AgriSystem Pvt. Ltd.


    Your Partner in Agri-business

    1.18 Assumptions
    Project & Financing
    Contingencies on Building
    Contingencies on Equipment
    Term Loan
    Rate of Interest on Term Loan
    Subsidy Considered
    Subject to ceiling
    Expected time of Installation
    Moratorium
    CAPACITY
    Rated Capacity Per Annum
    80% of Installed capacity
    Number of Operational Days
    DAYS
    Working Hours Per day
    Hrs
    CAPACITY UTILIZATION
    Year I
    Year II
    Year III
    SALES PRICE
    W S Price
    OTHER EXPENSE
    Commission
    Marketing Expenses
    POWER
    Connected Load
    HP
    DEPRICIATION AS PER COMPANYS ACT
    BUILDING
    PLANT & MACHINERY
    MISC. FIXED ASSETS
    LAND & SITE DEVELOPMENT
    MAINTENANCE
    BUILDING
    PLANT & MACHINERY
    MISC. FIXED ASSETS
    LAND & SITE DEVELOPMENT

    Months
    Months
    TPA

    10%
    20%
    40%
    10%
    25%
    10
    6
    480
    300
    20
    65%
    90%
    100%
    120000
    5.0%
    2.5%
    60
    3.34%
    10.34%
    7.07%
    1.63%
    2.00%
    2.50%
    2.00%
    1.50%

    1.18.1 Sources of technology


    M/s. Sujata Enterprises, Laxmi Rd., Pune 411 030
    M/s. Laxicon Engg, Sitabardi, Nagpur 440 012
    Raylons Metal Works, PB No. 17426, JB Nagar, Andheri (E), Mumbai-400059
    Gladyin and Company, 251, DN Rd., Fort, Mumbai-400001
    The actual cost of projects may deviate on change of any of the assumptions.

    Project Profiles - MP Agros

    Global AgriSystem Pvt. Ltd.


    Your Partner in Agri-business

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