Business Project Report

On
Ground and Processed Spices

By,
Mr. Vivek Limbalkar
Class: TYBBA (TC -046)

Under the guidance of

Dr. Mangesh Bhopale
In partial fulfillment of
Bachelor’s Degree in Business Administration

Submitted To

Alandi (D), Pune

Academics Year 2021-2022

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1.1 About the promoters

PARTICULARS ABOUT THE PROMOTERS

NAME VIVEK VINOD LIMBALKAR

ADDRESS Off 19/20/21, 3rd Floor, P.S.Angan Primises

Cooperative Society Ltd, Near Magarpatta
South Gate, Hadapsar, Pune- 411028,India

CONTACT NUMBER 8482889265

DATE OF BIRTH 13/01/2000

EDUCATION QUALIFICATION BBA

PROJECT LOCATION Magarpatta South Gate

PROFESSIONAL EXPRIENCE BUSINESS DEVELOPMENT

CONSTITUTION SOLE PROPRIETORSHIP

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______________________________________________________________________________

Contents
Chapter Particular Page no
No

1 HIGHLIGHTS OF THE PROJECT REPORT 4

2 INTRODUCTION 6

3 MARKET POTENTIAL 7

4 BASIS AND PRESUMPTIONS 8

5 IMPLEMENTATION SCHEDULE 9

6 TECHNICAL ASPECTS 10

7 Quality Control and Standards 13

8 FINANCIAL ASPECTS 14

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 Chapter-1
Highlights of the Project Report

4
 JAIN
GROUND AND PROCESSED
SPICES

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INTRODUCTION

Spices play an important role in enhancing the flavor and taste of processed foods. They are also
used in medicines because of their carminative, simulative and dig, festive properties. India
produces almost all the known spices and is the largest exporter of this commodity. Ground spices
are extensively used in all types of curried dishes in India and abroad.
Although spices are traded chiefly in an unprocessed form, a small yet significant quantity enters
international trade as spice powders. Curry powder is the foremost of those blends or mixes and
sometimes consists of 20 or more spices designed to add the characteristic flavor of an Indian
curry, which is appreciated all over the world. Apart from the overseas market, processed curry
powder is becoming popular in the domestic market also.

Hence the demand for unadulterated spices and curry powder in attractive handy packaging, is fast
emerging.

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MARKET POTENTIAL

India is one of the leadings exporters of spices. The export earnings from spices can be increased
quite considerably if the export of spices is encouraged in processed form, which will bring more
value addition to the unit price of whole spices. Further as it is a mass consumption item mostly
used in culinary preparations or seasoning of food products, its domestic demand is increasing
quite steadily due to improvement in purchasing power of people.

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BASIS AND PRESUMPTIONS

i) The scheme is based on single shift per day 300 working days per annum.

ii) The rate of interest on total capital investment is taken as 14%.

iii) The break-even point has been calculated on full capacity utilization basis.

iv) The unit is located in a rented premises.

v) For this industry, working capital has been considered for one month.

vi) The cost of machinery and equipments indicated refers to a particular brand and the prices are
approximately those ruling at the time of the preparation of this project profile.

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vii) The provision made in the other respects viz; raw materials, personnel, utilities and other
expenses are on the basis of the standard operations and average output and costs indicated against
each are approximate based on the local market conditions and observations.

IMPLEMENTATION SCHEDULE

The project will take atleast 6 months to come into operation for which the implementation
schedule has been worked out as follows:

1. Preparation of project 1 month report, selection of site, registration as SSI unit

2. Availability of finance, 2-3 months selection of machinery and procurement of machinery

3. Erection and commis- 3-4 months sioning

4. Recruitment of labour 3-4 months and commercial production

5. Trial run 4-5 months

6. Commencement 6th month of production onwards

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TECHNICAL ASPECTS

•Process of Manufacture
The process of manufacture involves cleaning, drying, pulverizing, sieving and packing of spices
such as chilli, pepper, turmeric, coriander etc. either individually or in combination with other
spices. There are various formulations for curry powder, but the ingredients like red chilli, black
pepper, cloves, coriander seed, cumin seed, fenugreek seed, ginger and turmeric are typically
common. The proportion and the inclusion of spices in a particular mix depends upon individual
manufacturers.

• Raw materials

Most of the spice raw materials originate from Asia, south-east Asia and from areas of
Europe, mainly from Mediterranean countries Only 15 species of spices are an
element of the native flora. The remaining species come from warm and hot climate
zones, hence their raw materials are imported to Poland
The list of spices and vegetable raw materials available in grocery trade on Polish
market, along with their characteristics, is given in Table

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•MACHINERY & ELECTRICITY

All this type of machinery required

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•Energy Conservation

Although the energy requirement is small, adequate care should be taken in electrical installations
and optimal utilization of machinery

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Quality Control and Standards

The following ISI specifications are available for ground spices:

i) Black pepper whole and ground IS: 1778:1982

ii) Chilli powder IS: 2445:1984
iii) Coriander powder IS: 2444:1980
iv) Curry powder IS: 1909:1961
v) Turmeric powder IS: 2446:1980
vi) Method of sampling IS: 1797:1973
vii) Technology for IS: 1877:1973
spices and condiments
viii)Method of test for IS: 1797:1985

Spices and condiments Provisions have also been made in the scheme for a testing laboratory so
that the unit will be able to test their products and maintain the quality as per PFA Act and
‘Agmark’ standards.

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FINANCIAL ASPECTS

A. Fixed Capital

(i) Land and Building 150 sq. meter (rented per month) Rs 3500

(ii) Machinery and Equipments

1. Micro pulveriser with 5 HP motor 2 25000 50000

2. Disintegrator with 7.5 HP 1 20000 20000

3. Hot air drier cabinet type electrically operated with temp. control device 1 25000 25000

4.Platform weighing scale capacity 300 Kg 1 5400 5400

5. Counter scale balance upto 5 kg 1 1100 1100

6. Sieving machine (locally fabricated) 1 5000 5000

7. Heat sealer for plastic bags electrically operated

2 8000 16000

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8. Form fill seal machine (FFS) 1 95000 95000

•Testing equipments LS 50000 50000

•Office furniture and LS 50000 50000

•Office furniture and LS 50000 50000

• Electrification and installation charges @ 10% cost of machinery and equipment 31750

Total 2,17,500
(iii) Pre-operative Expenses 31,750

Total Fixed Capital 38,1000

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B. Working Capital (per month)

I) Personnel

NO Designation NOS SALARY TOTAL

MANAGER 1 8000 8000

Supervisors 2 6000 12000

Skilled Workers 2 3000 6000
Unskilled Workers 5 2000 10000

Total 36000

ii) Raw Materials including Packaging Requirements

NO Particulars Qty Rate Amount

1 Chilli 3000 60 180000
2 Turmeric 1500 35 52500
3 Coriander 1500 37 55500
4 Pepper 1000 210 210000
5 Ginger 1000 75 75000
6 Packaging materials cartons, LS 25000
etc.
TOTAL 598000

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Utilities Amount (In Rs.)
i) Electricity 6000
ii) Water Charges 1000
TOTAL = 7000

iv) Other Contingent Expenses Amount

(In Rs.)

i) Rent 3500
ii) Postage and stationery 1000
iii) Repair and maintenance 1500
iv) Transportation charges 3000
v) Advertisement and publicity 3000
vi) Other Misc. expanses such 2000
as tax insurance etc.
Total= 14000

v) Total Recurring Expenditure Amount

(per month)

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i) Raw materials 598000

ii) Personnel 36000

iii) Utilities 7000
v) Contingent expenses 14000
Total = 655000

C. Total Capital Investment

Amount (In Rs.

i) Fixed Capital 381000
ii) Working capital for 1 month 655000
Total =10,36,000

FINANCIAL ANALYSIS

i) Cost of Production (per year) Amount

(a) Total recurring cost/year 78,60,000
(b) Depreciation on machinery and equipment @ 10% 26,750
(c) Depreciation on Office Furniture @ 20% 10,000
(d) Interest on total capital 1,45,000
investment @ 14%
Total= 80,41,750
Say =80,42,000

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ii) Turnover (per year)

Item Qty Rate Total

Chilli powder 3 3000 80 2,40,000
Turmeric powder 1500 45 67,500
Coriander powder 1500 45 67,500
Pepper powder 1000 250 2,50,000
Ginger powder 1000 100 1,00,000
Total 7,25,000

Turnover (per year)

Rs. 7,25,000 × 12 Rs. 87,00,000
(iii) Net Profit (per year Before Tax) Rs. 6,58,000
(iv) Net Profit Ratio 7.5%
(v) Rate of Return 62.3.5%

ii) Net Profit (per year)

B.E.P. = F.C. × 100 F.C. + P
= 4.55 × 100 11.13 (4.55+6.58)
= 41%

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Thank you

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