Ground and Processed Spices and Cereals

Product Code Quality Standard 219201005 Spices The product envisaged in the project are to be manufactured as per ISI PFA and Agmark specifications. Export worthy products must confirm to the quality specifications of Agmark Quantity 1.302 MT September, 2002 Small Industries Service Institute, Ministry of SSI, Govt. of India, Advisor Choumuhani, Krishnanagar Road, Agartala 799 001 Value 69.81 Lakhs

Production capacity/Annum Month & Year of preparation Prepared by

Introduction:
Spices play an important role in enhancing the flavor and taste of the processed foods. They are also used in the medicines because of their carminative stimulating and digestive properties. India produces almost all the known spices and in the largest exporter of this commodity. Although spices are traded chiefly in an unprocessed from a small yet significant quantity enters international trade as spices powders. Curry powder in the foremost of those blends a mixer and some times consists of 20 or more spices designed to impact the characteristics flavor of an Indian curry which is appreciated all over the world. Hence the demand for unadulterated spices and curry powder in attractive hand packages is fast emerging.Cereals like rice flower and besan used for manufacturing channachur and manufacturing fast foods etc.

Market
Spices and Cereals are mass consumption in day to day requirement. Spices are mostly used in culinary preparations or seasoning of food products. Its internal demand in increasing is quite steadily due to increasing in population and improvement in purchasing power. In future coarse promoter may plan to export near by countries.

Basis and presumption

1) 2) 3) 4) 5) This scheme envisages the setting up of a Ground Spices and Cereals manufacturing unit with a daily production of 435 kgs on a single shift per day. 25 working days per month and 300 days per annum. Labour wages have been taken as per the privileges wages of the market. Interest rate worked out for fixed capital loan and working capital loan 14% as charged by the banks and financial institutions. Cost of machinery and equipments taken actual but may vary supplier to supplier 10 to 12% wastage is assumed in Grounding process.

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Pay back period of the Project has been assumed to be 5 years.

Project Implementations
1) 2) 3) 4) 5) 6) 7) Occupation of land & building Already acquired SSI registration, preparation of Project report Four months approaching to banks Placements of order for machinery 45 days Staff appointing, raw materials, procure15 days ment orders Installation and erection of machinery 15 days Trial production 15 days Commercial production 15 days

All activities may be initiated simultaneously and the project may come to commercial production within 8 months.

Technical Aspects
Process out line for Ground Spices and Cereals The process of manufacturing involves cleaning, drying, pulverizing, sieving and packing of spices as chilli, turmeric, zera, dhaniya, rice flower and besan. There are various formulations for curry powder by the ingredients like chilli turmeric, zera, dhaniya are typically common. The proportion and the inclusion of spices in a particular mix depend on individual manufacturers.

Quality specification
The following ISI specifications are available for ground spices 1) Chilli powder IS 2445 1963 2) Turmeric powder IS 2446 1963 Production capacity per annum Quantity 1.302 MT Value 69.81 lakh Motive Power 25 HP

FINANCIAL ASPECTS 1) Fixed Capital

i) Land and building 1600 sq.ft. Rented Rs. 3,000 per month Price(Rs.) Total(Rs.) 1,06,250 1,06,250 15,000 50,000 5,500 20,000 15,000 50,000 11,000 20,000

2) Plant and Machinery

Sl.no. Decription Quantity 1 Micro pulverisor with 20 HP motor and all 1 accessories 2 Disintegrator (No. 18) with 3 HP Motor 1 3 Swing hammers mill with 2.5 hp motor and 1 all accessories 4 Line shats 2 5 Dust cleaner 1

6 7 8 9 10 11 12 13 14 15

Atta chaki 20 Sieving machine Weighing balance of 300 kg. capacity Testing equipments Seal machine with all accessories Working tables and tools etc Office furniture and other equipment Preoperative expenses Packing and forwarding cost @ 12% Erection and electrification @ 15% on plant and machinery Total

2 2 1 LS 1 LS LS LS

6,050 7,500 10,000 6,500

12,100 15,000 10,000 30,000 6,500 5,000 5,000 20,000 27,522 39,878

3,73,250

3) Working Capital per month a) Raw material (Per month)

Sl.No. Description 1 Turmeric 2 Dhania 3 Chilly 4 Jira 5 Rice 6 Channadal 7 Packing material Total Rate/kg 38 40 55 100 11 26 Quantity in kg. Value (Rs.) 2,500/95,000/1,000/40,000/1,500/82,500/1,000/1,00,000/3,000/33,000/3,000/78,000/5,000/Rs. 4,33,500/-

b) Personnel requirement per month

Sl.No. Designation 1 Manager 2 Supervisor 3 Skilled Worker 4 Unskilled worker 5 Sales man 6 Clerk 7 Chowkidar Perquisits@10% Total Say Nos. 1 1 6 6 1 1 1 Salary Self 3,000/2,000/1,750/2,500/2,000/1,250/3,125/34,375/34,400/Amount 3,000/12,000/10,500/2,500/2,000/1,250/-

c) Utilities per month

Power Electricity(3750 units) @ 1.75 per unit Water charges Total Rs. Rs. Rs. 6,563/500/7,063/-

d) Contingent Expenses (Per month)

1. 2. 3. 4. 5. 6. 7. Rent Postage Telephone Transportation charges Repair and maintenance Sales expenses Other miscellaneous expenses Total 3,000/1,000/500/Rs. 15,000/Rs. 1,500/Rs. 5,000/Rs. 6,000/Rs. 32,000/Rs. Rs. Rs.

4) Total Working Capital per month

1. 2. 3. 4. Raw materials Personnel Utilities Other contingent expenses Total Rs. Rs. 4,33,500/34,400/Rs. 7,063/Rs. 32,000/Rs. 5,06,963/-

5) Total Capital Investment

1. 2. Fixed Capital Working Capital for 3 months Total Say Rs. Rs. 3,73,250/7,60,445/Rs. 11,33,695/Rs. 11,33,700/-

6) Financial Analysis(Per annum)

a) b) c) d) Total recurring cost per year Depreciation on Machinery @ 10% Depreciation on furniture and tools etc. @ 20% Rs. Interest on Fixed Capital investment @ 14% Total 62,59,975/Rs. Rs. 60,83,556/31,573/2,000/Rs. 1,42,846/Rs.

7) Turn Over (Per month)

1) 2) 3) 4) 5) 6) Turmeric Powder Chaniya Chilly Jira Rice Besan Total 2250 900 1300 900 2750 2750 @ 60/@ 60/@ 75/@ 160/@ 20/@ 35/Rs. Rs. Rs. Rs. Rs. Rs. 1, 35,000/54,000/97,000/Rs. 1, 44,000/55,000/96,250/5,81,750/-

Turnover per annum = 5,81,750 x 12 = 69,81,000 Profit per annum = 69,81,000 62,59,975 = 7,21,025

8) Percentage of Profit on Sales

Profit per annum Turnover per annum 7,21,025 69, 81,000 = 10.33%
x 100 x 100

9) Rate of Return on Investment

Profit per annum Total investment 7,21,025 11, 33,700 = 63.60%
x 100 x 100

10) Break even point

Fixed Capital 1) Depreciation 2) Interest on total investment 3) 40% Salaries and Wages 4) Rent 5) 40% other contingent other than rent Total Fixed Capital Fixed Capital + Profit
x 100

33,573/1, 42,846/Rs. 1, 65,120/Rs. 36,000/Rs. 1, 39,200/Rs. 5,16,739/-

Rs. Rs.