A BUSINESS BUSINESS PLAN ON “STEVIA” ……….A sugar alternative ………A Natural sweetener Co!an" nae# Lt&.
$a%iosi& $a%i osi&e e sugar In&i In&ia a !vt.
P$EPA$E' B(# AWANTIKA AWANTIKA HITESH RUMKI GOPAL KRANTI AFTAB AFTAB RIZWAN RIZWAN SAIKAT VIVEK PIYUSH SAVITA SAVITA
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Particulars
Introductory page Executive summary Industry analysis Production plan Operational plan Mareting plan Organi"ational plan $inancial plan $easi%ility study 'ppendix
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Int#o$u%to#& !"'e( 2
Out line of buine !l"n:!l"n :-
Sr. No. 1
2 3 4 5 6 ! #
9 1&
Particulars
Introductory page Executive summary Industry analysis Production plan Operational plan Mareting plan Organi"ational plan $inancial plan $easi%ility study 'ppendix
Page No. 3
4 6 12 19 21 23 25 31 33
Int#o$u%to#& !"'e( 2
Name of the company: Rabioside sugar India pvt. Ltd. Address of company: Rabioside sugar India pvt. pvt. Ltd. )*arat*inagar +ist( Mandya ,arnataa -5!1 422 Ph.: è - 35546 Fax: è - 354## Email: ra% ra%ios iosid ide. e.sugars/com sugars/com
Product: 0tavioside a%ioside Total production: 12&&&& ,gs *is proect report is made to capture a start up maret o 1/44 o natural sugar maret/
Total capital investment: s/ 3&&&&&&&7Tot"l ("#e %"!it"l) 10000000/ Lo"n)20000000/ *ebt+ e,uit& R"tio=2:1 (idle) P#o-ote#. %ont#ibution i 6000000/ P#o-ote#. t"te in t(e %o-!"n& i 60%
E/e%uti0e Su--"#&: 3
0ugar is one o t*e astest moving commodities in India/ Indian sugar maret is second largest sugar maret in t*e 8orld/ India *as 531 sugar mills/ In 2&&9 sugar production 8as 2&/# million tons 8*ere as total consumption 8as 23/& million tons 8it* import o 2/5 million tons/ *e Indian sugar industry is mared %y co-existence o dierent o8ners*ip and management structures since t*e %eginning o t*e 2&t* century/ 't one extreme t*ere are privately o8ned sugar mills in :P t*at procure sugarcane rom near%y cane gro8ers/ 't t*e ot*er extreme *ere are cooperative actories o8ned and managed ointly %y armers especially in t*e 8estern state o ;uarat and Ma*aras*tra/ *ere are state o8ned actories in %ot* t*e states and state-managed cooperatives in :P/ 0ugar is India nearly #3 =or 41 o total cooperatives> are concentrated in Ma*aras*tra ollo8ed %y :P 8it* 2# mills/
4
5
In$ut#& "n"l&i+ *e sugar industry is t*e second largest agro-%ased industry next to textiles in India/ In India sugarcane is t*e ey ra8 material or t*e production o sugar/ *e sugar is extracted rom t8o dierent ra8 materials sugarcane and %eet? %ot* produce identical reined sugar/ 0ugarcane is gro8n in semi-tropical region and accounts or around t8o-t*ird o 8orld sugar production/ )eet is gro8n in temperate climate and accounts or t*e %alance one t*ird o 8orld production/ In India sugar is an essential item o mass consumption and t*e c*eapest source o energy supplying around 1& o t*e daily calorie intae/ @it* rising income India an estimated production o 1#/6 million tonnes in sugar year 2&&6 accounting or around 1&-12 o 8orld
Production ycle to !esurge in "# $%%&'(% : 6
0ugarcane and sugar production in India typically ollo8s a 6 to # year cycle 8*erein 3 to 4 years o *ig*er production are ollo8ed %y 2 to 3 years o lo8er production/ *e production cycle is set to resurge ater t*e t8o consecutive years o declining sugar production/ Co8er production coupled 8it* liAuidation o a *ig* sugar stocs carryover rom previous years resulted in an increase in sugar prices 8*ic* in turn *as *elped t*e Indian sugar industry ameliorate t*e inancial crisis/ Industry sources report t*at *ig* sugar prices coupled 8it* t*e tig*t cane supply orced mills to pay *ig*er cane prices and issue timely payment to armers/ 0trong gur prices encouraged gur manuacturers to pay *ig*er cane price =s/ 12&&-1#&& per ton vs/ s/ 6&& to 12&& per ton last year>/ DonseAuently cane price reali"ation and net returns to sugarcane armers *as %een considera%ly *ig*er during t*e M 2&&971& compared to t*e previous years/ @it* t*e prices o ood grains =8*eat rice mai"e pulses> %eing relatively sta%le conditions are avora%le or sugarcane planting visF-vis alterative crop rotations o ood grains/
onsumption: 7
*e recent slo8do8n economy gro8t* and expected strong sugar prices due to orecast tig*t supplies s*ould contain any gro8t* in consumption in M 2&1&711 to 23/& million tons unc*anged rom last year/ )ul consumers suc* as %aeries maers o candy and local s8eets and sot-drin manuacturers account or a%out 6& percent o mill sugar demand/ Most o t*e sugar is consumed %y local s8eets manuacturers/ ur is mostly consumed in rural areas or *ouse*old consumption/ Prices and stoc)s:
@it* relatively tig*t domestic supplies sugar prices *ave %een on t*e rise since Guly 2&&#/ Prices *ave lared up signiicantly since +ecem%er 2&&# ater t*e s*ortage o sugarcane and sugar %ecame more evident/ ur prices *ave ept pace 8it* sugar prices and *ave no8 reac*ed record levels/
Durrent sugar prices in maor domestic 8*olesale marets range rom H41& to H45& per ton nearly 45 percent *ig*er t*an last year is t*e main criteria or determining t*e productivity and via%ility o t*e sugar industry/ In India %ecause o 8
traditional industry lie ;ur and *andsari manuacturers ragmentation lesser cane availa%ility and competition or cane *as resulted in lo8er plant si"es/ 0ugar mills in India *ave capacities ranging rom %elo8 125& tonnes crus*ed per day =tcd> o sugarcane to 1&&&& tcd/ *e ;overnment *as no8 esta%lis*ed minimum capacity criteria or ne8 sugar mills standing at 25&& tcd/ Dapacity limits *ave increased considera%ly over t*e duration o t*e industry %et8een !5& tcd in t*e oldest actories to 1&&&& tcd in t*e most recent actories/ *e report o t*e tas orce on sugar industry or 1&t* ive-year plan *ad noted t*at nearly #4 o sugar mills *ad a capacity o %elo8 25&& tcd %ut at present only around 22 o t*e sugar mills *ave an installed capacity o 25&& tcd/
State-*ise +istri,ution of o-operative and other sugar mills:
0tate '/P/ ;uarat Baryana ,arnataa Ma*aras*tra // :/P/ :ttaranc*al Puna% ot*ers otal
Dooperatives o/ o Installed actories capacity # 192 1! 1&!1 1& 353 16 551 #2 546# 14 546 2# !#4 4 133 12 4&5 12 1#2 2&3 1&6#4
Ot*ers o/ o Installed actories capacity 26 !16 & & 3 19# 21 9&# 2& 511 2& 9!9 !# 3!53 6 2!9 # 2!9 15 6!# 19! #3&2
otal o/ o Installed actories capacity 34 9&# 1! 1&!1 13 551 3! 1459 1&2 59!# 34 1524 1&6 453! 1& 412 2& 6#4 2! #61 4&& 1#9#5
SWOT An"l&i of t(e Su'"# In$ut#&
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Strengths J Indian sugar industry is t*e second largest producer o sugar in t*e 8orld ater )ra"il/ *e sector *as a potential to mae t*e country to %e sel reliant in t*is *ig*ly sensitive essential commodity o mass consumption/ J 'nnual tax contri%ution to exc*eAuer s/ 1! %illion annually/ J Provides direct employment including ancillary activities to near a%out &/5 million 8orers J It also supports t*e do8n stream industries %y providing t*e ra8 material/ J 0ugarcane arming is more proita%le t*en any ot*er cas* crop in India/ J *is sector *ave %een t*e ocal point o socioeconomic development o t*e rural India J 0trong government policies as it comes under essential commodity o mass consumption pportunities J Big* value o %y-products or do8n stream industries/ J Buge potential to increase t*e productivity o cane and sugar recovery rate/ Jec*nology up gradation ne8 advanced tec*nology availa%le or t*e %y product utili"ation/
ea)nesses J Most o t*e Do-operative sugar industries in India e/ g/ in Ma*aras*tra ind diicult to pay or t*e sugar cane supplied %y t*e armers/ J Most o t*e sugar actories are more t*en 3& years old and still using t*e old tec*nology lo8 installed production capacity leads to t*e decrease in production and losses/ J Cac o proessionalism
Threats J0ugar sector is vulnera%le to political interest/ J ;round 8ater availa%ility or irrigation/ J Kuality o soil deteriorates due to overuse o ertili"er and pesticides to increase sugarcane yield/ J:n*ealt*y competition %et8een mem%ers o t*e society/
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STATE/SE S01A! P!+0T/N /N /N+/A 2%%% tonnes3 0tates
19## 19#9 199& 19#9 199& 1991
1991 1992
1992 1993
1993 1994
1994 1995
1995 1996
1996 199!
199! 199#
'nd*ra Prades* 5&!
566
!&1
#43
54&
64!
#!4
#59
!!2
!#2
)i*ar
31!
333
413
46&
325
23&
39
3#2
362
299
;uarat
5!#
66!
#31
!53
!51
#26
!59
113&
96!
#9&
Baryana
2#&
336
3!5
4#9
345
3&#
343
453
49&
3#2
4arnata)a
5%$
5&6
&7$
(%8$
975
98(
($$
($68
95(
&&
,erala ;oa
22
23
1#
26
19
1&
2#
32
2&
16
Mad*ya Prades*63
!2
1&3
12#
6&
3!
!&
125
#6
6#
Ma*aras*tra
2629 3923 4119
4213
336&
2!46
5&25
5394
3345
3#4!
Puna%
245
295
2!5
3#4
4&9
311
319
633
613
331
aast*an
14
12
23
3!
24
16
1#
31
24
29
1231
132!
1&21
1122
1921
16!1
1
1266
// Pondy/ 1&5# 925 :/P/ Dentral
9!2
1264 11!6
149!
1192
1&55
1455
1!!!
1632
16&&
:/P/ East
62&
!&3
953
!#!
6!!
1&12
1&43
1&5#
##1
:/P/ @est
!1&
1&42 1&3&
12&4
#!#
9#3
1142
1559
1393
1441
3&
56
4#
34
5#
99
#9
64
Ot*ers- 'ssam Orissa 33 agaland @est )engal 'll India
!69
39
#!52 1&9## 12&4! 134&4 1&6&9 9#33
14643 16451 129&5 12#55
P#o$u%tion !l"n+ 11
Ste0i"+ 0tevia is a genus o a%out 24& species o *er%s and s*ru%s in t*e sunlo8er amily ='steraceae> native to su%tropical and tropical regions rom 8estern ort* 'merica to 0out* 'merica/ *e species !tevia rebaudiana commonly no8n as s8eet lea s8eet lea sugar lea or simplystevia is 8idely gro8n or its s8eet leaves/ 's a s8eetener and sugar su%stitute steviaLs taste *as a slo8er onset and longer duration t*an t*at o sugar alt*oug* some o its extracts may *ave a %itter or licorice-lie atertaste at *ig* concentrations/ @it* its extracts *aving up to 3&& times t*e s8eetness o sugar 0tevia *as garnered attention 8it* t*e rise in demand or lo8-car%o*ydrate lo8-sugar ood alternatives/ Medical researc* *as also s*o8n possi%le %eneits o 0tevia in treating o%esity and *ig* %lood pressure/ )ecause 0tevia *as a negligi%le eect on %lood glucose it is attractive as a natural s8eetener to people on car%o*ydratecontrolled diets/ *e availa%ility o 0tevia varies rom country to country/ In a e8 countries it *as %een availa%le as a s8eetener or decades or centuries/
Production +escription:0tevia is a plant 8*ic* is t*e native o nort*ern 'merica/ 0tevia plan contain to8 main secondary meta%olites vi" a%ioside and 0tavioside/ )ot* t*e products are natural s8eetener *aving t*e ollo8ing advantages over normal sugar(1/ 2/ 3/ 4/
Co8 caloriic value ot *armul or Bypertension and +ia%etes/ 3&& times s8eeter t*an normal sugar/ 'vaila%ility doesn
*e advantage o stevia plat is its lo8 seed producing capacity/ *us to cultivate stevia plant or t*e production o its meta%olites micro propagation is t*e only 8ay/ *us or t*e production o a%ioside and 0tavioside setting up o a micro propagation is necessary/
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Production scale: )y studying t*e sugar demand and supply in t*e recent years it 8as seen t*at India is importing 2/5 million tons o sugar every year/ o meet t*is demand %y a%ioside and 0tavioside India needs to produce a%out #334 tons =2/5 million tons 73&&> o a%ioside and 0tavioside every year =as a%ioside and 0tavioside are 3&& times s8eetener t*en sugar>/ *us it can %e concluded t*at India *as a domestic maret or #334 tons o a%ioside and 0tavioside every year/ The capacity of the unit *ill ,e ($% tons 2($%%%% 4g3 of !a,ioside and Stavioside per annum.
*is proect report is made to capture a start up maret o 1/44 =12&7#334> o natural sugar maret/
;ench scale concept:' %enc* or la%oratory scale production is done 8it* a capacity o 12 ilograms per annum and it 8as ound t*at at certain contr4olled conditions t*e leaves o 0tevia plant contains around 1! o a%ioside and 0tavioside/ The protocol for ,ench scale !a,ioside and Stavioside production is as under (-
0tevia re%audiana plant is cultured in M0 media/ Cea nodal and intermodal segments o t*e plant is selected as explants/ *e media is supplemented 8it* various amounts o gro8t* *ormones and ot*er c*emicals and at certain levels o *ormones t*e leaves are ound to contain 1! a%ioside and 0tavioside/ 'nd t*ese levels o *ormones are selected to conduct t*e pilot scale production/ In la%oratory scale production 12 ilograms o 0tavioside and a%ioside are produced/ $rom production o 12 ilograms o 0tavioside and a%ioside !1 ilograms o stevia leaves are produce %y t*e process o micro propagation/ 6 mont*s 8as t*e loc-in period or t*e production o 0tavioside and a%ioside %y t*e process o micro propagation/ Pilot scale Production: 13
'ter successully perorming t*e %enc* scale production a standard protocol 8as developed and 8it* t*is protocol pilot scale production is done 8it* a production capacity o 5& ilograms per annum/ /n pilot scale production the follo*ing pro,lems are o,served (-
1/ *e contamination %y t*e ungi and %acteria can damage t*e complete lot o 0tevia plant as in t*e gro8t* room condition t*e plants need to %e supplied 8it* gro8t* media many times t*us increasing t*e c*ance o contamination/ 2/ *e amount o media need to develop a callus into seedling is ound to %e 3&ml/ Pilot scale production is done successully 8it* t*e protocol standardi"ed in la%oratory scale production and in pilot scale production also t*e amount o 0tavioside and a%ioside content is ound to %e 1!/
/ndustrial scale production:'ter successully completion o la%oratory and pilot scale production successully it is concluded t*at t*e production o natural s8eetener %y t*e process o micro propagation is via%le and economically easi%le/ $or t*e production o 12&&&& ilograms o a%ioside and 0tavioside t*e need o 0tevia leaves is around !&5##3 ilograms/ *e loc-in period o 0tavioside and a%ioside production is ound to %e around 6 mont*s in %ot* %enc* and pilot scale production/ *e 8eig*t o t*e leaves o a 6 mont*s old 0tevia plant is around !5 grams excluding t*e damages/ *us or production o !&5##3&&& grams o 0tevia leaves 8e need to produce 9411!!4 plantlets per annum/ I 8e produce 9411!!4 plantlets per annum t*e amount o leaves 8ill %e 9411!!4 !5grams N !&5##3&&& grams N !&5##3 gs o 0tevia leaves *e a%ioside and 0tavioside content o 0tevia leaves is ound to and 1! t*us rom !&5##3 gs o 0tevia leaves 8e can extract 1! o !&5##3 gs N 12&&&& g
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Stages of Tissue ulture: *e stages involved in propagation %y tissue culture are dividend into ive/ ' general account o t*ese stages is outlined %elo8/ a3 hoice of explants
Explants could %e s*oot tips =meristem> nodal %uds sections rom internodes leaves roots centers o %ul%s corms or r*i"omes or ot*er organs/ *e c*oice depends on t*e species to %e multiplied and t*e met*od o s*oot multiplication to %e ollo8ed/ 'ctivity gro8ing =s*oot tips> uvenile =seedlings> or reuvenated =sucers> tissues are preerred/ *e commercial tissue culture ta%s commonly use tips o apical or lateral s*oots 8*ic* contain meristem/ Meristem is made up o cells dividing actively in an organi"ed manner/ *ey are a%out &/1 mm in diameter and &/25 &/3& mm/ in lengt*/ Bo8ever explants s*ould %e c*osen rom typical *ealt*y disease ree 8ell tested mot*er plants cultivated under conditions 8*ic* reduce contamination and promote gro8t* o tissues to %e cultured/ I necessary explants may %e su%ected to virus testing and elimination/ *e selection o mot*er plants is very important or commercial success o tissue culture propagation/ *e Auantity o explants reAuired or propagation %y tissue culture is very small/ $or example 2mm/ t*ic petiole sections rom 'rican violet =a lo8ering *er%> could yield 2&&&& plantlets per petiole =%asal portion o lea>/ $oreign7local colla%orators 8it* esta%lis*ed %usiness may agree to supply explants ree o cost/ ,3 Esta,lishment of 1ermfree 2aseptic'sterile3 culture
Excised part o plant is suraced sterili"ed and transerred to sterile nutrient medium contained in glass vessel/ On an average a%out 5&cc/ nutrient medium may %e added per glass vessel/ *e cultures are maintained in gro8t* rooms/ I t*ere is no inection and tissue isolated rom mot*er plants survive in t*e artiicial environment initiation o ne8 gro8t* 8ill tae place ater a 8ee or so/ *us germ-ree culture is esta%lis*ed/
c> Production of shoots'propagules 15
Once gro8t* is initiated %y induction o meristematic centres %uds develop into s*oots %y multiplication o cells/ *ere are t*ree types o multiplication systems or production o s*oots/ i3 "ultiplication ,y axillary shoots
In t*is case s*oots are produced rom excised s*oot tips o nodes/ Bormones =cytoinins> are used to induces multiple %ranc*ing/ *is is t*e most common met*od ollo8ed in commercial units/ Bo8ever t*e rate o multiplication is lo8/ 0till it is preerred %ecause axillary s*oots are liely to %e genetically sta%le and t*e c*ances o production o types unlie mot*ers are less/ ii3 "ultiplication ,y adventitious shoots
Explants suc* as sections o leaves internodes or roots can produce directly adventitious s*oots or ot*er organs/ *is system *as *ig*er multiplication rate %ut lesser genetic sta%ility t*an axillary system/ iii3 "ultiplication ,y somatic em,ryos 2em,ryoids3
Em%ryos are usually ormed %y t*e union o male and emale reproductive cells ="ygotic em%ryo> 8*ic* ultimately can develop into a young plant/ Em%ryo lie structures can also %e produced rom somatic cells/ 0omatic em%ryos are independent %ipolar structures and are not attac*ed to t*e tissues o origin/ *e also can develop to orm young plants lie "ygotic em%ryos may %e produced directly rom explants suc* as sections o leaves internodes or roots on solid culture medium/ *e ormation o young plants mentioned under =a> and =%> a%ove or ormation o somatic em%ryos mentioned in t*e preceding para directly on excised plant parts occurs only in certain species/ *e most common orm o regeneration o plants occurs indirectly rom callus/ Dallus is mass o undierentiated diving cells oten ormed in tissues cultured in vitro/ Dallus may give rise eit*er to adventitious s*oots 8*ic* develop into plantlets or somatic em%ryos 8*ic* develop into seedlings/ Dallus is ormed even naturally in response to 8ound/
16
*e ormation o callus can %e induced %y selecting proper tissue and culture medium/ *is system *as t*e *ig*est multiplication rate and produce complete tiny plants/ One gram o explants can produce one la* somatic em%ryos/ +ormancy can %e induced in t*em or t*ey can %e transormed into synt*etic seeds/ Bo8ever callus is genetically unsta%le or plants arising rom it may %e unlie mot*er plants/ 0uc* plants are no8n as o-types/ *ey occur more reAuently in callus culture and adventitious s*oot culture as compared to axillary s*oot culture/ O-types are undesira%le in commercial propagation/ egeneration o s*oots or intact p&lants %y any one o t*e multiplication systems descri%ed a%ove is inluenced %y many actors suc* as composition o medium =specially concentration o gro8t* regulators> type o tissue genotype ploidy level etc/ ormally multiplication cycle i/e/ t*e period rom incu%ation o plant parts on medium to ormation o s*oots varies rom 3 to 6 8ees/ Bo8ever t*e process is recycled many times %y su%-culturing in order to o%tain reAuired multiplication rates/ 'ter completion o a cycle s*oots are cut separately and transerred to res* medium/ Dutting is done manually %y using dissecting tools in laminar lo8 ca%inets 8*ere t*e air is clean to prevent any contamination/ Once t*e s*oots are placed on res* medium t*ey are transerred %ac to t*e gro8t* rooms/ *us it may %e possi%le to multiply t*e s*oots 3 to 1& times per cycle o 3 to 6 8ees duration/ d3 Preparation of micro-cuttings for esta,lishment in the natural environment
oung axillary or adventitious s*oots are inally separated orm clusters =micro cutting> or initiation and development o roots/ 'ter separation t*ey are transerred individually to a medium containing rooting *ormone =auxin> and continued to %e maintained in t*e gro8t* rooms until t*e roots are ormed/ It may green *ouse or root ormation/ 0omatic em%ryos may directly develop into seedlings/ e3 Esta,lishment in the natural environment *e most critical stage o t*e propagation %y tissue culture is t*e esta%lis*ment o t*e plantlets into t*e soil/ *e steps involved are as under - @as*ing o media rom plantlets - ranser o plantlets to compost7soil in *ig* *umid green *ouse - ;radual decrease in *umidity rom 1&& to normal over 3-4 8ees - 'nd gradual increase in lig*t intensity/ Plantlets during t*eir gro8t* in la%oratory do not p*oto synt*esi"e and t*eir control o 8ater %alance is very 8ea/ *ey use sugar contained in medium as source o 17
energy/ *ey exist lie %acteria =*eterotrop*y>/ *ey need to %e converted to more plant lie existence =autotrop*y> i/e/ t*ey s*ould %e in a position to utili"e car%ondi-oxide rom t*e air and solar energy or t*eir ood reAuirement/ *is acclimati"ation on t*e *ars* real environment outside artiicial la%oratory milieu taes place gradually/ ulture environment
Environment conditions in t*e gro8t* room 8*ic* inluence cell multiplication are lig*t day lengt* and temperature/ In tissue culture lig*t is reAuired or synt*esis o green pigment =c*lorop*yll> and development o organs/ *e range o lig*t intensities appropriate or culture room varies rom 1&&& to 5&&& lux/ eAuirement o day lengt* 8ould %e in t*e range o 16-1# *ours/ emperature reAuirement o day lengt* 8ould %e in t*e range o 16-1# *ours/ emperature reAuirement varies rom 2&&-3&& D depending on species o plants/ ropical plants may reAuire *ig*er temperature t*an plants/ Prevention of contamination
Prevention o contamination in tissue culture is extremely important or commercial success o t*e unit/ *e entire production can go 8aste i t*e culture is contaminated/ 0ugar ric* culture medium excised plant tissue and culture environment are all conducive to t*e gro8t* o pat*ogens/ *ereore it is essential t*at all operations are conducted in sterile or aseptic conditions/ arious stages involved in prevention o contamination are outlined %elo8( - Mot*er plants s*ould %e gro8n under conditions 8*ic* do not promote diseases/ Explants s*ould %e ree o diseases/ 0urace sterili"ation o explants in solutions o sodium or calcium *ypoc*lorite is necessary/ Beat or treatment 8it* certain c*emicals may eradicate latent viruses/ 'll eAuipments and culture media are sterili"ed %y autoclaving at 15l%/sA/ Inc* pressure at 12&& D or 15 minutes/ *e la%oratory s*ould %e cleaned 8it* disinectants/ *ey s*ould put on sterili"ed clot*es/ +ou%le distilled 8ater s*ould %e used or 8as*ing explants ca%inets *atc*es and instruments/ 'ir *andling units are employed or gro8t* rooms and culture transer rooms in order to avoid cross contamination %et8een dierent areas o operation inside t*e clean area/ *e sterile condition is o%tained in laminar air lo8 ca%inets as t*ey are provided 8it* special type o international standard BEP' ilters/ *ese ilters remove all t*e dust particulars o a%ove &/3 micron in t*e air/
O!e#"tion"l !l"n+ 18
4arnata)a Sugar /ndustry:
,arnataa 0ugar Industry rans 3rd in terms o its contri%ution o sugar in t*e total sugar production in t*e country/ *e 0ugar Industry in ,arnataa is a%le to manuacture sugar in suc* *uge Auantities due to t*e act t*at sugarcane is a%undantly availa%le in t*e state/ In act ,arnataa stands 4t* in t*e country in t*e cultivation o sugarcane/
*e 0ugar Industry in ,arnataa *as around 41 sugar actories 8*ic* are distri%uted all over t*e state/ *e various locations o t*e sugar actories o ,arnataa 0ugar Industry are ,onnur aruna ,oppa Madapura +andeli Gam%agi Bosur Margur elgur 0iddapur and 'rsang*atta/ *e maor %eneits o ,arnataa 0ugar Industry are t*at it *as generated many acilities in t*e state suc* as communication employment and transport/ It *as also %eneited t*e state %y *elping in t*e development o t*e rural areas o t*e state %y mo%ili"ing t*e various resources o t*e villages/
19
Lo%"tion+ $or setting up t*e poly *ouse and plantation o stevia plants t*e place selected is Mandya 8*ic* is around 12& ms rom )angalore/ Advantage of "andya (
1/ 2/ 3/ 4/ 5/
Dlose to )angalore Donnected to )angalore -Mysore express8ay 2& ms rom Mysore rail8ay station Co8 cost o la%our Co8 cost o agricultural land
12 "%#e of l"n$ (" been ele%te$ in M"n$&" 3M&o#e 4"&5 T(e "$0"nt"'e of t(e l"n$ ele%te$+
Cocated ust 1 m rom *ig*8ay $rom *ig*8ay tar road is t*ere so lorries can move to proposed 8are*ouse or loading and unloading t*us reducing t*e cost *e 8idt* o t*e road is 12-15 t/ *e cost o t*e land is very reasona%le *e land is 8it* clear titles *e land is not co-s*are *olding property t*us c*ance o any urt*er dispute is very less/
Availa,ility of !a* "aterial: *e list o t*e ra8 material reAuired(1/ ;ro8t* media on a regular %asis/ 2/ D*emicals on a regular %asis/ )ot* t*e a%out mentioned ra8 materials can %e purc*ased rom )angalore %y t*e competitive price and can %e delivered to t*e site/
20
M"#6etin' !l"n+
21
22
O#'"ni7"tion"l !l"n+ Buine -o$el: *e %usiness proposal is prepared or a company a company 8*ic* needs to %e registered under Dompanies egistration 'ct 195#/ $or t*is irst a name s*ould %e selected and t*en it *as to %e registered 8it* egistrar o Dompany 8it* orm 1'/ *e name o t*e company is selected as < R"bioi$e u'"# In$i" !0t5 Lt$5=/
ame o t*e Promoters
'@'I,' BIE0B :M,I ;OP'C ,'I '$') IQ@' 0'I,' IE, PI:0B 0'I'
Tot"l ("#e %"!it"l) 10000000/ Lo"n)20000000/ *ebt+ e,uit& R"tio=2:1 (idle) P#o-ote#. %ont#ibution i 6000000/ P#o-ote#. t"te in t(e %o-!"n& i 60%
23
"anpo*er: For the production of & million plantlets per annum the total no. of employee *ill ,e:-
Ca%oratory tec*nicians( 12 Poly *ouse oicer( - 3 'ccounts( - 2 'ssistant manager( 2 Extraction stas( - 2 ;eneral manager7c*ie(-1 +river(-1 Dleaning stas(-2 Out o t*e employees 12 8ill %e graduate in %iotec*nology 3 8ill %e science graduate 2 rom commerce 8it* sound no8ledge in accounts 2 8ill %e post graduate =eit*er M/0c/ or M/ec*/> in %iotec*nology 8it* experience in plant tissue culture 2 8ill %e graduate or post graduate in science 8it* no8ledge in plant tissue culture 2 8ill %e graduate or post graduate in science 8it* no8ledge in extraction tec*niAues suc* as BPCD etc/ I 8ill %e P*+/ in %iotec*nology and or t*e post o driver and cleaning sta person 8it* nominal education 8ill %e enoug*/ lose proximity to customer and mar)et competition:-
*ere are more t*an 5&&ood processing companies in and around )angalore 8*ic* all are using sugar as a ra8 material ro t*eir production/ On an average t*ese companies totally uses near a%out 2/5 crore ilos =considering 5 tons per company per year> o sugar every year 8*ic* can %e replaced %y near a%out #33&& ilos o 0tavioside and a%ioside/ *e a%ove act s*o8s t*at in close proximity o )angalore t*e demand or 0tavioside and a%ioside is #33&& ilos and t*e supply is almost nil/ *us s*o8ing a tremendous gro8t* possi%ility or t*e production o 0tavioside and a%ioside/
24
Fin"n%i"l !l"n+ /nvestment +etails: Li"bilitie(
Dapital Coan
1&&&&&&& 2&&&&&&&
otal Cia%ilities
3&&&&&&&
Total >ia,ilities: !s.8%%%%%%%' Aet(
$ixed 'ssets( Cand (1& 'cers at s/1&&&&& )uilding( otal area o 1&&&& 0A/$t in 2 loors at #&& per 0A/$t Mac*inery and eAuipments $urniture otal ixed assets(
1&&&&&& #&&&&&& !5&&&&& 5&&&&& 1!&&&&&&
Mova%le assets( ;ro8t* media( 2!&&&& lits at 25 per lits @ater supply system Misc construction materials lie polyt*in tarpaulin etc eserve or salaries and ot*er recurring costs lie electricity and p*one %ills etc otal mova%le assets(
6!5&&&& !&&&& 15&&&&& 46#&&&& 13&&&&&&
Total Assets: !s.8%%%%%%%'Statutory permits:25
(. *e promoters o t*e companies need to tae a +I =+irector
26
;alance sheet( >ia,ilities
Promoters contri%ution enture capital otal 0*are Dapital
Coan rom 0I+)I . 12 Coan rom +epartment o )iotec*nology . #
otal Coan
otal Cia%ilities
Assets
6&&&&&& Fixed Assets: 4&&&&&& Cand )uilding 1&&&&&&& Mac*inery and eAuipments $urniture
"ova,le assets: ;ro8t* media !&&&&&& @ater supply system 13&&&&& Misc construction materials lie & polyt*in tarpaulin etc eserve or salaries
1&&&&&& #&&&&&& !5&&&&& 5&&&&& 1!&&&&& & 6!5&&&& !&&&&
2&&&&&&&
15&&&&& 46#&&&& 13&&&&& &
3&&&&&&& otal 'ssets
3&&&&&& &
27
0tility Area+ '/
Dlean 'rea media store and production control production autoclave area culture transer room gro8t* rooms c*ange area
)/
semi-clean area lag 8as* la%oratory7Media 8as* area =i>%ottle =ii>plant store
$loor 'rea =0A/$t> otal =0A/$t> 5&& 4&& 15&& 65& 65& 3&& 4&&& 1&& 5&& 5&& 5&& 4&& 2&&&
D/
service area oice lo%%y corridor scientist room computer room guest room canteen toilet total covered area2approx.3
15&& 3&& 1&& 15& #&& 15&
3&&& 9&&& (%%%%
28
>ist of e?uipments *ith price:
0r/ o/ 1 2 3 4 5 6 !
# 9 1& 11 12 13 14
Particulars 'utoclave )alances pB meter Caminar airlo8 +istillation set Domputer system 'ir- conditioners a>1/& tonnes %>1/5 tonnes=2 stand %y> Microscopes )ottle 8as*ing unit Media cooing unit
15 16 1! 1# 19
;ro8t* room racs rays rolleys +iesel ;enset =62/5 ,'> +issecting ,its and Inoculation instruments erigerator 'ir ilters Oven otary 0*aer
2& 21 22 23 24 25
)ottles Ca% clot*s @as*ing mac*ine Incinerator $ire ig*ting eAuipment 0ta%ili"ers
o/ 5 2 2 1& 2
6 #
ate =s/7Pc> 1#4&&& 45&&& !&&& 65&&& 36&&& 2&&&&&
1 1
25&&& 3&&&& 2&&&& 3&&&&& 1&&&&&
Dustom mae #& 2& 1
1&&&&&& 6&&& 13&& 265&&&
2 2 3 2
25&&& 1&&&& 15&&& 15&&& 25&&&
45&&&&& 1 1 1&
&/3 25&&& 15&&& 25&&& 2&&&& 2#&&
s/ 92&&&& 9&&&& 14&&& 65&&&& !2&&& 2&&&&& 15&&&& 24&&&& 2&&&& 3&&&&& 1&&&&& 1&&&&& & 4#&&&& 26&&& 265&&& 25&&& 2&&&& 3&&&& 45&&& 5&&&& 135&&& & 25&&& 15&&& 25&&& 2&&&& 2#&&& 29
26 2!
Miscellaneous ;lass8are u%e lig*ts or gro8t* rooms
2#
BPCD
1&&&&&
1&&&&&
4&
24&&&& 1&&&&& &
6&&& Dustom mae
Total cost of e?uipments@5%%%%%'>ist of Furniture and Fixture:
0r/o/ 1 2 3 4 5 6 !
Particulars a%les or ;M and 'ssistance manager Dler Ca%/ a%le D*airs and 0oa set Dup%oard Ca%/ acs Miscellaneous
ate 22&&& 2&&& 1#&&& 3&&&& 13&&& 5&&& 3&&& 93&&&
# 9 1& 11 12 13 14
u%e lig*ts or oices lo%%y etc/ $ans $ax Mac*ine elep*one type8riter Intercom Pic up an
4&&& 6&&& 25&&& #&&& 12&&& 12&&& 34&&&&
4&!&&& 5&&&&&
Total cost of Furniture@%%%%%'-
30
verheads(
0r/ o/
0alary 1 ;eneral Manager 1 2 'ssistant Managers a/ Ca%oratory %/ ;reen*ouse c/ Mareting and 'ccounts
3 4 5 6 ! # 9 1&
ec*nicians Managers Dlar ;uards +river Mec*anic ypist Dontingencies otal
0alary7Mont 0alary7yea o/ * r 1 2!&&& 324&&& 2 2
2&&&& 2&&&&
1
2&&&&
12 2 1 3 1 1 1
12&&& 2&&&& 4&&& 3&&& 25&& 2&&& 2&&&
12&&&&& 1!2#&&& 4#&&&& 4#&&& 1&#&&& 3&&&& 36&&& 36&&& 1&&&& 4&&&&&&
Total overheads per month@88888'Total overheads per year@7%%%%%%'-
31
P#o8e%t fe"ibilit& tu$&: $inancial analysis %ased on cas* lo8 ec*niAue indicates t*at Proect is inancially via%le as 8ould %e evident rom t*e ollo8ing data( Total yearly expanses 2!s.3:
0alary Interest on Coan rom +epartment o )iotec*nology . # Interest on Coan rom 0I+)I . 12 Ot*er recurring cost .2&&&&7mont* Total
7%%%%%% 97%%%% (%7%%%% $7%%%% 6($%%%%
Total production: 12&&&& gs Total production cost: s/ 612&&&&7ost per 4g. N s/ 517-
Coc in period or t*e proect is 6 mont*s i/e/ production 8ill start ater 6 mont*s rom t*e date o production 8or/ Financial proection for the years:-
Production in 4g ost of Production Salary Selling price'4g. ther expanses
(st 6&&&& 51 4&&&&&& 115 212&&&&
$nd 12&&&& 51 4&&&&&& 115 212&&&&
8rd 12&&&& 51/6 4&!&&&& 12& 212&&&&
7th 12&&&& 52 41&&&&& 125 212&&&&
th 12&&&& 52/5 415&&&& 125 212&&&& 32
including interests Total !evenue Total expanses Net Profit
69&&&&& 13#&&&&& 612&&&& 612&&&& !#&&&& !6#&&&&
144&&&&& 619&&&& #21&&&&
15&&&&&& 622&&&& #!#&&&&
15&&&&&& 62!&&&& #!3&&&&
apital ,udgeting: Total capital investment: s/ 3&&&&&&&7-
ear 1 2 3 4 5
Das* in lo8=s/> !#&&&& !6#&&&& #21&&&& #!#&&&& #!3&&&&
cumulative cas* lo8=s/> !#&&&& #46&&&& 166!&&&& 2545&&&& 341#&&&&
SoB ,rea) even point is 9 &e"# : -ont( "n$ ;< $"&5
$inancial analysis %ased on cas* lo8 ec*niAue indicates t*at Proect is inancially via%le and company 8ill recover total initial investment in is 4 years 6 mont*s and 92 days =as %rea even point is 4 years 6 mont*s and 92 days> 5
Exit Strategy: R"bioi$e u'"# In$i" !0t5 Lt$
33
