SPICE GRINDING & PACKAGING INTRODUCTION Spices are essential ingredients adding taste and flavouring in food preparations. India is the largest producer and consumer of spices with a production of around 36.68 lakh tones. India is also the largest producer of chilli in world contributing 25% of the total world production. Indian spices are of the finest quality. Today the demand for it has considerably increased from all the countries. The project aims at production of ground spices especially chilli in consumer packs. The project mainly would involve production of chilli powder, tamarind powder, Jeera powder, Dhania powder and mix spice powder. ABOUT THE PRODUCT Powdered spices are convenient to use and also saves time and energy for preparing different delicious dishes. Besides their everyday use in households, spices are used in significant quantities in processed foods such as pickles and sauces. It is also very much useful particularly for the working couples, bachelors, hostels, hotels, restaurants, hospital and different camps of defense personnel spreading throughout the country. MARKET POTENTIAL Spices are integral part of Indian food (India has come to be known as “land of spices”) both as a component of daily food items as well as part of pickles, sauces & chutneys etc.. With changing of life style and especially with changes of food habits and increase of income level, the use of powdered spices has increased. Of late, the market for ready mix of spices has grown significantly. Export market for Indian spices is also growing- it was Rs. 2025 crore during 2000-01.Thus the market is huge with potential for quality producer. Numbers of brands have appeared in the market such as Sona, MDH, Ashok Masala, Sunrise etc. besides these, some of local brand are also there in the market. In addition there are numbers of small units producing powdered spices, both in loose as well as packet formed. The consumption of spices in a household of five members, in the north eastern region is estimated at 100 gm. per person per month i.e. 6.0 kg per household per year. Of this share of, powdered spice may be taken at 50% i.e. 3.0 kg per household per year. In north eastern states powdered spices are used mainly in urban and semi urban areas and it may be conservatively assumed that 70% of the urban population uses powdered spices. SUGGESTED CAPACITY To assessing the proposed plant capacity due consideration is given on availability of raw materials, availability of electricity and market. The annual production of 50 tonne is suggested, the production and product-mix at different capacity utilization per annum will be as follows: 2nd yr. onwards Item Installed 1st yr. production production @90% Capacity @80% (TPA) Turmeric powder 20 16 18 Chilli powder 10 8 9 Jeera powder 5 4 5 Dhania Powder 5 4 5 10 8 9 Mix Powder (dhania, chilly, pepper, bay leaf & curry leaf etc.) Total 50 40 46 Basis:No. of working days No. of shifts One shift Daily Production

= = = = =

25 days per month 300 days per year 1 per day. 8 hours 135 kg. (at 80 Capacity)

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INFRASTRUCTURE REQUIRED The main Infrastructural facilities required are: Covered shed area (processing hall/storages/office) Power requirement Water (required in every working day) RAW MATERIALS REQUIRED AND AVAILABILITY The major raw materials required for this unit are turmeric, chilly, jeera and dhania etc. Based on an average yields of 95% from ungrounded spices to powdered spices and annual requirement of raw materials would be about 53 tonne (basis on 100% capacity utilization). 1. 2. 3. 4. 5. Turmeric Chilly Jeera Dhania Mix Powder (dhania, chilly, pepper, bay leaf & curry leaf etc.) 21.00 10.50 5.25 5.25 11.00 53.00 tonne tonne tonne tonne tonne tonne 800 sq. ft. 10 kw. 1,500 ltrs.

Capacity wise details of raw-materials & packaging materials are as follows: Items Quantity (MT) in the 1st year @ 70% Quantity Value (in Rs.) 2,65,000 2,57,000 4,44,000 1,66,500 4,50,000 Quantity (MT) in the 2nd year @ 80% Quantity Value (in Rs.) 3,03,000 2,94,000 5,04,000 1,89,000 5,14,000 Quantity (MT) in the 3rd year onward @ 80% Quantity Value (in Rs.) 18.90 3,41,000 9.45 3,30,000 4.75 5,70,000 4.75 2,14,000 9.90 5,78,000

Turmeric 14.70 16.80 Chilly 7.35 8.40 Jeera 3.70 4.20 Dhania 3.70 4.20 Mix Powder (dhania, 7.70 8.80 chilly, pepper, bay leaf & curry leaf etc.) Packaging Materials 70,000 nos. 1,05,000 80,000 nos. 1,20,000 90,000 nos. 1,35,000 (50/100/200 & 500 gm. size packets) Total (Rs.) 16,87,500 19,24,000 21,68,000

SUGGESTED LOCATION Generally urban as well as semi urban areas having the infrastructure of electricity, transportation, near to raw materials may be considered as viable location of NER including sikkim for setting up of spice grinding unit.

PRODUCTION PROCESS 1. Raw Spices Sealing 6 2 Cleaning 7 3 Grinding/Pulverizing 4 Mixing 5 Filling &

Packaging

Transportation

8 Marketing.

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PROJECT ECONOMICS Total Capital Requirement The total capital requirement including fixed capital and working capital is estimated at Rs 14.50 lakhs as follows. Of this, the project cost comprising fixed capital and margin money on working capital is Rs.11.42 lakhs. A. Fixed Capital Land Land Development Cost Building /Civil works: i) ii) iii) Work shed 300 sq.ft Office/Store for R.M./Finished goods 300 sq.ft. Toilet/Bathroom/Cemented open space, Drainage facilities etc. 2.10 2.10 (Rs. in lakhs) on rent 0.80

1.00 1.00 1.50

Plant & Machinery Misc. Fixed Assets (Water arrangement/Overhead reservoir/pump set/power line connection/water & electrical fittings/office equipment) Preliminary & Pre-operative Expenses Contingency provision B. Working Capital: Raw materials/consumables Packing materials Working expenses Finished goods Receivable

0.50 0.40 9.40 1.38 0.30 1.00 1.45 0.97 5.10 : : : 2.02 3.08 5.10

15 days 1 month 1 month 10 days 7 days

Note: Working capital to be financed as – Margin Money Bank Finance

Means of Finance: The project cost of Rs.11.60 lakhs may be financed as under: Promoter’s Equity(25%) Term Loan(75%) Operating Expenses The annual operating expenses are estimated as under: Raw material/consumables packing materials: Working expenses Repair & Maintenance Administrative overhead Selling expenses 10% on sales Depreciation Interest Sales Turnover: 1. Dhania(coriander)40 Qtls@ Rs.9,000/Qtls 2. Chilli powder 82 Qtls@ Rs.12,000/Qtls : : 2.87 8.55 11.42

: : : : : : : :

24.93 2.20 6.27 0.10 0.30 5.00 0.50 1.49 40.79 2.48 lakhs 9.84 lakhs

Rs. Rs.

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3. 4. 5.

Haldi(turmeric) 165 Qtls@ Rs.9,000/Qtls Jeera ( camin seed) 40 Qtls@ Rs.16,000/Qtls Meat Masala 85 Qtls@ Rs.18,000/Qtls

Rs.10.23 lakhs Rs. 6.40 lakhs Rs.15.30 lakhs Rs.49.99 lakhs Say Rs. 50.00 lakhs

Profitability: Based on the sales realization and the operating expenses, the profit would be Rs. 9.21 lakhs per year. This works out to a return on capital investment of 64%. The unit would breakeven at about 36% of the rated capacity. Break Even Analysis: A. Variable Cost: Raw materials/Consumables Packing materials Utilities Selling expenses B. Semi-Variable Cost: Wages & Salaries Repair & Maintenance Administrative overhead Depreciation Interest C. D. E. Sales Realization Contribution Break-Even Point B/D x 80% 5.02 0.10 0.30 0.50 1.49 7.41 50.00 16.62 36% (Rs in lakh) 24.93 2.20 1.25 5.00 33.38

Highlights: The major highlights of the project are as follows: Total Capital requirement Promoter’s contribution Annual Sales realization Annual Operating Expenses Annual Profit Return on sales Break-even point No. of person employed Machinery & Equipment: The main equipment required are – i) Spice Grinding Machine 24” Vartical stone,complete set ii) Electric Motor 15 h.p. 1400 RPM with Starter iii) Power Capacitor 6 KVAR iv) V. Belt,Pulley v) Line shaft, rubber pulley bearing and block etc vi) Rubber belt,foundation boltand weighing scales etc. accessories

Rs. Rs. Rs. Rs. Rs. 18% 36% 9

14.50 lakhs 2.87 lakhs 50.00 lakhs 40.79 lakhs 9.21 lakhs

: : : : : :

2 sets. 1 no. 1 no. 2 set. 2 set. L.S.

23,000 32,000 1,600 10,000 5,500 15,000 87,100 13,000 1,00,100 Say Rs.1.00 Lakh

Add.: Taxes,duties, fright, insurance, packing, Loading and unloading etc. @15%

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Raw Materials/Consumable (Annually): Item Quantity Dhania(coriander) Chilli powder Haldi(turmeric) Jeera ( camin seed) Meat Masala(Mixed) 42MT 84MT 168 MT 42MT 88 MT

Rates(Rs.) 4,000/MT 4,200/MT 4,500/MT 8,000/MT 10,000/MT Total Rs.

Annual Requirement (Rs in lakh) 1.68 3.53 7.56 3.36 8.80 24.93

Packaging materials Item 100 gm. poly bag 200 gm. poly bag 50 gm. poly bag 500 gm. poly bag

Quantity(nos.) 1.00 lakh 0.75 lakh 1.25 lakh 0.50 lakh

Rates(Rs.) 0.50 each 0.75 each 0.50 each 1.00 each Total Rs.

Annual Requirement (Rs in lakh) 0.50 0.57 0.63 0.50 2.20

Manpower: Category Manager cum skilled worker Un-skilled worker Store cum Accountant Sales personnel

No.of Person 1 4 1 3

Salary per person per month(Rs) 6000 3000 5000 5000 Total Manpower Cost

Monthly Requirement (Rs) 6000 12000 5000 15000 38,000

Salary Bill Rs 4.56 Lakhs + Benefits @ 10% annually i.e. Rs 0.46 Total Annual Salary Bill : Rs 5.02 Lakh. Utilities Power for Machinery: General Lighting: 15 H.P. 2 H.P --- ----------17 H.P. --------------

d)

b)

Electricity Bill: 17 H.P. X 0.746 KW X 6 Hrs. X 300 days X Rs. 5.50 Hence, annual Electric bill Water Charge = 5000 Ltrs. per day(L.S.)

Rs. 1.15 lakh Rs. 0.10 lakh

ADDRESSES OF MACHINERY SUPPLIERS/MANUFACTURERS 1. M/S Archana Machinery Stores M.S. Road, Fency Bazer, Guwahati-781 001 M/S Shew Machinery Store. A.T. Road, Guwahati-781 001 M/S Process Machinery & Equipments Pvt. Ltd. 8A, Shyamapaprasad Mukherjee Road. Kolkata-700 025 M/S Bengal Metal Works. 69A, Serpentine Lane, Kolkata-700 014.

2.

3.

4.

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FORMAT

(A Introduction. (B. About the Product (C. Market Potential (D. Suggested Capacity (E. Infrastructure requirement a. Covered Area b. Utilities (F. Raw Materials and its availability (G. Suggested Location (H. Production process(step wise) (I. Project Economics a. Capital Cost. b. Working Capital requirement c. Cost of Production & Profitability d. Turn Over e. Sources of Finance f. Plant & Machineries g. Cost of Raw Materials & Consumables h. Cost of Utilities & Overhead i. Manpower requirement & wage bill j. Profit Sales ratio k. Rate of Returns l. Break Even Point Addresses of machinery suppliers/manufacturers

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