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    1 Papain: Project Profiles - MP Agros Global Agrisystem Pvt. Ltd. Your Partner in Agri-Business 1

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    Lê Ái Nhi
    This document discusses setting up a papain production facility in Madhya Pradesh, India. Papain is an enzyme extracted from papaya fruit and used in various industries. The summary is: 1) Papain can be extracted from green papaya fruit and has applications in industries like food, pharmaceuticals, and leather. 2) The proposed project would establish a 90 tonne per year facility to produce BPC grade papain from locally available papaya in Madhya Pradesh. 3) The total project cost is estimated at 278 lakhs Indian rupees, to be funded through a mix of equity, term loans, and subsidies. The project is expected to be financially viable and profitable

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    1 Papain: Project Profiles - MP Agros Global Agrisystem Pvt. Ltd. Your Partner in Agri-Business 1

    Uploaded by

    Lê Ái Nhi
    21 views6 pages
    This document discusses setting up a papain production facility in Madhya Pradesh, India. Papain is an enzyme extracted from papaya fruit and used in various industries. The summary is: 1) Papain can be extracted from green papaya fruit and has applications in industries like food, pharmaceuticals, and leather. 2) The proposed project would establish a 90 tonne per year facility to produce BPC grade papain from locally available papaya in Madhya Pradesh. 3) The total project cost is estimated at 278 lakhs Indian rupees, to be funded through a mix of equity, term loans, and subsidies. The project is expected to be financially viable and profitable

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    This document discusses setting up a papain production facility in Madhya Pradesh, India. Papain is an enzyme extracted from papaya fruit and used in various industries. The summary is: 1) Papain can be extracted from green papaya fruit and has applications in industries like food, pharmaceuticals, and leather. 2) The proposed project would establish a 90 tonne per year facility to produce BPC grade papain from locally available papaya in Madhya Pradesh. 3) The total project cost is estimated at 278 lakhs Indian rupees, to be funded through a mix of equity, term loans, and subsidies. The project is expected to be financially viable and profitable

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    21 views6 pages

    1 Papain: Project Profiles - MP Agros Global Agrisystem Pvt. Ltd. Your Partner in Agri-Business 1

    Uploaded by

    Lê Ái Nhi
    This document discusses setting up a papain production facility in Madhya Pradesh, India. Papain is an enzyme extracted from papaya fruit and used in various industries. The summary is: 1) Papain can be extracted from green papaya fruit and has applications in industries like food, pharmaceuticals, and leather. 2) The proposed project would establish a 90 tonne per year facility to produce BPC grade papain from locally available papaya in Madhya Pradesh. 3) The total project cost is estimated at 278 lakhs Indian rupees, to be funded through a mix of equity, term loans, and subsidies. The project is expected to be financially viable and profitable

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    of 6

    1 1.

    PAPAIN Introduction

    Papain is a proteolytic enzyme from the cysteine proteinase family. It is manufactured from the latex of raw papaya fruits as papaya is very rich in papain. A milky fluid known as latex containing papain oozes out of the green papaya. The greener the fruit, more active is the papain. Papain enzyme results in high value-addition. Hence this product can be manufactured in Madhya Pradesh. Ideally, some progressive papaya grower should undertake this venture as a measure of forward integration. 1.2 Objective

    The primary objective of the model report is to facilitate the entrepreneurs in understanding the importance of setting up unit of papain. 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 papaya is available almost round the year. In the year 2002-03 the total production of papaya was 43973 Mt on an area of 897 Ha. 1.4 Market Opportunities

    Papain is used in many industries for variety of reasons. Some of the end-users are breweries, pharmaceuticals, food, leather, detergents, meat and fish processing etc. Thus, the end use segments are many. Most of these industries are growing. Good quality papain has export demand as well. In spite of very good domestic as well as export demand, papain manufacturing has not yet picked up in the North-East and hence there are good prospects for new entrants. 1.5 Project description

    Applications Dry powder made from the latex of raw papaya is commonly known as crude papain. Dried papain is stored in powder or flakes form. They are diluted with lactose powder to get BPC grade papain. There is a market for raw as well as BPC grade papain. This note considers production of BPC grade papain.
    1

    Project Profiles - MP Agros

    Global AgriSystem Pvt. Ltd. Your Partner in Agri-business

    Capacity of the Project The total capacity of the project is 90 MT per annum. Manufacturing process White milky latex of green and fully grown papaya fruits is collected in the early morning by making deep longitudinal cuts by stainless steel or wooden sharp knives. Latex is collected in stainless steel trays while latex coagulated in the surface of the fruits is scrapped and collected in the trays. A fruit is tapped about 6 times in the course of 16 days. This latex is passed through 50 mesh sieves to remove dirt and then it is mixed with potassium metabisulphate and spread on trays and dried in a vacuum shield drier at a temperature of about 55O C for 4-5 hours. The dried product is packed in air-tight containers and stored in a cool, dry place. It should be kept in flake form as powdering decreases the stability of the product during storage. Dried flakes are powdered and diluted with lactose powder to get BPC grade papain. Plastic containers should be used to pack crude papain flakes or powder as metal containers would result in loss of enzyme activity. Transportation is also very critical as papain has to be kept below 20O C temperature or else its shelf life is reduced. With proper storage and handling, its shelf life is 5-6 months. Recovery of BPC grade papain is in the range of 25% to 30%. In other words, 100 kgs. of good quality latex is required to produce 25-30 kgs. of BPC grade papain. CFTRI, Mysore, has developed the technical knowhow for the product. The process flow chart is as under: Collection of latex

    Cleaning and sieving

    Mixing and drying

    Packing

    1.6

    Project component and cost

    Major components of the projects and their costs are described in the table hereunder:

    Project Profiles - MP Agros

    Global AgriSystem Pvt. Ltd. Your Partner in Agri-business

    1.7

    Land and Building


    Unit SqM Qty 2,200 2,200 SqM LS LS 1,500 10% 1 20% 1 20% 1 1 1 Cost/unit 250.00 500.00 5,000.00 10,000,000.00 2,500,000 2,140,000 50,000 720,000 Total 99.00 5.50 11.00 75.00 7.50 120.00 100.00 20.00 30.00 25.00 5.00 29.10 21.40 0.50 7.20 278.10

    PARTICULARS LAND & BUILDING Land Land Development Land Area Building Production Block Buildup Area Contingencies PLANT & MACHINERY Plant & machinery Contingencies MISCELLANEOUS FIXED ASSETS Misc Assets Contingencies PRE-OPERATIVE EXPENSES Establishment Professional Charges Security Deposits TOTAL

    1.8

    Plant and Machinery

    The total cost of the plant and machinery is Rs. 120 Lakhs. 1.9 Building

    The main production block will cost around Rs. 82.50 lakhs. 1.10 Miscellaneous Assets A provision of Rs. 30 lakhs would take care of all the requirements. 1.11 Preliminary & Pre-operative Expenses A provision of Rs. 29.10 lakhs would take care of pre-production expenses like establishment, professional charges, security deposits etc. 1.12 Working capital assessment
    ITEMS STOCK OF RAW MATERIAL & PACKING MATERIAL SUNDRY DEBTORS TOTAL MARGIN MPBF INTEREST ON WC Year 1 15.46 54.00 69.46 17.36 52.09 5.73 Year 3 25.76 90.00 115.76 28.94 86.82 9.55 Year 5 25.76 90.00 115.76 28.94 86.82 9.55

    Project Profiles - MP Agros

    Global AgriSystem Pvt. Ltd. Your Partner in Agri-business

    1.13 Means of finance


    EQUITY CAPITAL MOFPI SUBSIDY TERM LOAN FINANANCIAL INSTITUTIONS -Payable half yearly Installments TOTAL 25% 10 50.00 10.00% 14.80 33.08% 16.92% 50.00% 100% 97.73 50.00 147.73 295.46

    1.14 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 TOTAL Year 1 17.20 17.55 4.16 52.09 91.00 Year 3 78.36 17.55 4.16 21.70 121.77 Year 5 72.62 17.55 4.16 94.33 Year 7 67.57 17.55 4.16 89.28

    1.15 Projected balance sheet


    PARTICULARS LIABILITIES EQUITY CAPITAL RESERVES & SURPLUS TERM LOAN BANK BORROWINGS-WC TOTAL Year 1 97.73 46.69 132.93 52.09 329.45 Year 3 97.73 123.56 73.73 86.82 381.85 Year 5 97.73 241.76 14.53 86.82 440.84 Year 7 97.73 359.65 86.82 544.21

    1.16 Projected profit and loss account


    Particulars INCOME EXPENDITURE VARIABLE FIXED GROSS PROFIT PROFIT BEFORE TAX RETAINED PROFIT Year 1 378.00 339.09 242.66 96.43 38.91 (3.31) (3.31) Year 3 630.00 529.93 393.48 136.45 100.07 59.21 59.21 Year 5 630.00 535.67 393.48 142.19 94.33 59.40 59.40 Year 7 630.00 540.72 393.48 147.24 89.28 58.02 58.02

    1.17 Key indicators


    NET PRESENT VALUE at current Inflation (Rs. in lakhs) INTERNAL RATE OF RETURN % AVERAGE DSCR BREAK EVEN POINT % PAY BACK PERIOD ( YEARS) 398.12 26.83 2.21 75.47 4.29

    Project Profiles - MP Agros

    Global AgriSystem Pvt. Ltd. Your Partner in Agri-business

    1.18 Manpower Requirement


    PARTICULARS SUPERVISORY STAFF GENERAL MANAGER ADMINISTRATIVE STAFF MARKETING MANAGER ACCOUNTANT OFICE CLERKS / MKTG ASSISTANT WORKERS PRODUCTION SUPERVISORS MANAGER - QC MAINT SUPERVISOR SKILLED WORKERS LABOUR NO. 1 1 1 3 3 1 1 8 12

    1.19 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 10% 20% 50% 10% 25% 10 6 90 210 20 60% 75% 100% 700000 10.0% 2.5% 180 3.34% 10.34% 7.07% 1.63% 1.00% 3.00% 2.00% 1.00%

    Months Months TPA

    Project Profiles - MP Agros

    Global AgriSystem Pvt. Ltd. Your Partner in Agri-business

    Sources of Technology / Machinery M/s Armstrong Smith Ltd.,1, Sir PSM Road Bombay M/s B. Sen Barry & Co. 65/11 Rohtak Road, New Delhi M/s Raylon Metal Works, J.B. Nagar, Andheri Bombay 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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