Spice

Project Profile on

: Spice Grinding

Installed Capacity

: 96MT/annum

Prepared for

:

Prepared on :

Prepared by : Business Development Department Orissa State Financial Corporation OMP Square, Cuttack-753 003 Tel. Phone : 2444192 E-mail : [email protected]

 //1// Introduction: India is known as home of spices and among the major exporter of the commodity. Some of the Spices abundantly available in India are Chilli, Turmeric, Coriander, Black pepper, Ginger which play an important role in enhancing the flavors and taste of processed foods. They are also used in medicine because of their digestive properties. Spice is used in natural form or in processed form individually or blended in different proportion for different taste. Grounded spices powders in different formulation are used for different purposes to name a few are samber powder, Rasam, Curry mix, Chana masala etc. BIS standards: IS 2445-1984 Chilli powder IS 2446-1980 Turmeric powder IS 1909- 1961 Curry powder In Orissa and Andhra Pradesh Spice like Chilli, Turmeric, Ginger are cultivated abundantly.

Market: Ground and processed spices find significant place in domestic as well in export market. India is one of the leading exporters of spices. The market of export of spices is encouraged in processed form as it will bring more value addition to the unit price of whole spices. The demand of spice powder is increasing day by day with the changing attitude, convenience as well as increasing in purchasing power of the people. The product finds good market in urban areas as well as rural area also.

Project Outline: A. Land: 10 decimal of land is necessary for the project keeping the future requirement. (Own) B. Building detail and cost: Work shed 1200 sft Office & store 300 Sft Well pump motor

@ 450/sft @ 450/sft Ls

5.40 1.35 0.20 6.95

Specification: Brick cement mortar wall RCC pillar AC sheet roofing over angle Iron truss. C. Plant & Machinery: a . Micro pulverize with 5 HP motor Disintegrator with 7.5 HP motor b. Hot air drier cabinet type electrically Operated with temp. Controlled

2 1

0.80 0.30

1

0.40

1 1 1 2 pair 1 1 1 1 1 2 1 Lot Total

0.06 1.35 0.04 1.50 0.20 0.15 0.10 0.02 0.08 0.30 1.50 0.50 7.30

 //2//

c.Rice Huller No.8 d. Oil Expeller 7 Bolt Heavy e. Filter Press f. Oil Ghani Bearing Type g. Disintegrator h. Pulley c. platform type weighing scale 300 kg. Capacity d. counter scale balance up to KG e Sieving machine f Heat sealing machine for plastic bag g. Form filling and sealing machine h. Testing equipment

D. Electrification & installation :

0.75

E. Misc Fixed assets: furniture & fixture

0.20

F. Preliminary & pre operative expenses

0.80

G. Total Fixed cost; Land Building & civil construction Plant & machinery Electrification & installation Misc.fixed asset

Own 6.95 7.30 0.75 0.20 15.20

H. Raw material, consumable and packing ;( Month) Particular Chillies Turmeric

Quantity 3 2

Rate 0.45 0.40

Amount 1.35 0.80

Coriander 1 0.30 Pepper 1 0.50 Ginger 1 0.30 Packaging material, cartoon Ls Mustard Seeds (On service Charge)

0.30 0.50 0.30 0.25 3.50

I. Utility & services; a. Power: The power requirement is 15 KW load And the monthly expenses toward power consumption will be 15* 8*25*4=Rs.0.12 lakh b. Water: The water requirement is around 250KL per month.

 // 3 //

J : Man power Sl No. 1 2 3 4

Designation Supervisor/self Skill worker Unskilled worker Office Asst.

H.. working capital detail; Particular Month Raw material 2 Working expenses 1 Goods in process 0.25 Goods in store 0.25 Sundry Debtor 1

I. Project Cost: Land including DevelopmentBuilding & Civil constructionPlant & machineryElectrification & installationMisc.fixed assetsPrel. Preoperative expensesContingency for price escalationMargin Money for WC-

Total 7.00 0.35 0.88 0.88 3.17 12.28

Own 6.95 7.30 0.75 0.20 0.80 0.40 3.40 19.80

No 1 4 4 1 10

salary (month) 0.05 0.16 0.10 0.03 0.34

Bank 5.25 0.00 0.66 0.66 2.29 8.86

margin 1.75 0.35 0.22 0.22 0.88 3.42

J. Means of Finance: Description Term Loan Promoter contribution

%age 75 25

Amount 11.50 8.30 19.80

K. implementation schedule; Selection of site Collection of information on market, P/M Utility Sanction of Loan Clearance from diff. authority Development, Civil construction Procurement & Installation of P/M Commissioning & Trial Run Commercial production  // 4 //

0-1week 0-1week 0-2 weeks 2-5 week 2-22 weeks 5-24 weeks 24-25 weeks 25-26 weeks

L. Manufacturing Process: The process of manufacturing involves some of the process like Cleaning, washing, drying, grading, Curing, grinding, sieving, Mixing and packing of spices such as Chilli, Pepper, Turmeric, Coriander, cloves, fenugreeks seed, Ginger etc either individually or in combination with other spices. There are various blending ratio of different spices for different curry powder and its combination also vary from region to region. The proportion and the spices in a particular mix depend on individual manufacturers. Drying is the most important in spice processing. The temperature in the driers should not be allowed to exceed 50-60 c. Higher temperature results in off flavors due to volatile constituents. Drying reduces the moisture content of the spices to 8-10 percent at which level deterioration in storage does not take place and grinding is facilitated. The dried spices are graded .After grading, the spices are ground in a hammer mill. For Retail marketing the spices are packed in polythene bag or attractive paper board packet. Bulk packaging is carried out in polythene line jute bag. As regard to Oil, this sector shall be purely on Service basis.

M. Detail of sale :( annum) Description Chilli powder Turmeric powder

Qty (MT) 36 24

rate 0.90 0.60

Amt 32.40 14.40

Mixed curry powder 36 Service charge of Mustard oil (L.S)

1.00

36.00 8.00 90.80

N. Cost of production: (annum) Raw material consumable & packaging Manpower Power Repair & maintenance @3% Adm. Overhead Depreciation P/m, Elect, Misc. Fixed asset @ 10% Civil construction @ 5% Interest Term loan @ 12% Working capital @12% Insurance @1%

42.00 4.08 1.44 0.45 0.50 0.94 0.73 0.21 2.40 1.38 1.02 0.25 ---------52.06 say 52 lakh

 // 5 // O. Profitability analysis (annum) Gross Profit (M-N) Tax @20% Net profit

37.20 7.44 29.76

P. Ratio analysis; i. Net profit ratio=Net profit/Turn over*100=29.76/90.80*100= ii. Rate of return=Net profit/investment*100=29.76/15.60*100=

32.77% 190.76%

iii. Break even analysis Computation of fixed cost Depreciation Repair & maintenance Interest on loan 40% salary 40% of other

BEP

=FC*100/FC+NP=6.26*100/4.94+29.76=

0.94 0.45 2.40 1.62 0.85 6.26 18.04%

Q. Basis of presumption: The project is based on single shift basis having 300 working day /annum.

The labour wage has been taken as per market rate The profitability analysis has been computed taking 100 utilization capacities

R. Address of Machine supplier: i. M/s Batliboi and Co Ltd. PB No.1719, MG Road Ernakulam, Cochin-682016 ii. M/s Jaymes Engineering Works MG road, Ernakulam-16 iii. Avery & Co. Ballard Estate Mumbai iv. Hindustan Furnace Marar Lane, Trichur-1 v. Kerala Scientific Glass works Industrial Estate, Ollur Chemida India 69,Cuff parade Mumbai-5 vi. PRS technology Pvt.Ltd. Mumbai.

Vii. S.P Eng. Corporation 79/c,Latouche Road P.B No – 218, Kanpur viii. Punjab Engg. Works 32, Ramakrishna samadhi Road, Kankurgachi

Kolkata - 54