Project report for snacks manufacturing

Introduction

Project report for snacks manufacturing - namkeen- Farsan manufacturing

The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year. In India, the food sector has emerged as a high-growth and high-profit sector due to its immense potential for value addition, particularly within the food processing industry. Accounting for about 32 per cent of the country’s total food market, The Government of India has been instrumental in the growth and development of the food processing industry. The government through the Ministry of Food Processing Industries (MoFPI) is making all efforts to encourage investments in the business. It has approved proposals for joint ventures (JV), foreign collaborations, industrial licenses, and 100 per cent export oriented units.The Indian food and grocery market is the world’s sixth largest, with retail contributing 70 per cent of the sales. The Indian food processing industry accounts for 32 per cent of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth...

Product / Services & process

Namkeen portfolio planned to launch contains : Besan Papdi, Poha Chiwda, Gathiya, Sev, Bhadang, Bhavnagari, Masala Bundi, Raita Bundi, Farsan, Masala Sev, Lasoon Sev, Soya Stick, Corn Chivda, Aloo Bhujiya, Falhari, Jira Gathiya, Khata Mita, Dal Mooth, Aloo Chatpata, Lasoon Farsan, Chakali, Bakarwadi.

Plant & Machinery / Equipments

We are planning to induct the following machineries and  the details ofthe vendors as follows

Machinery name    Vendor
Pulverizer     
Aata Chakki     
Homogenizer   
Liquid Fiiling Machine   
Powder Filling Machine    
Date Coder     
Ribbin Blender  
Namkeen Bhatti  
Namkeen Packaging Machine  
Chakali Machine     
Vibrator  
Air compressor  
Namkeen Machine     
Box packaging  

 

Market potential & Strategy

The Indian Food Industry is one of the fastest growing segments in Indian economy. Within the food sector itself, the RTE including Namkeen & Mithia holds the biggest share. This segment has the maximum value addition, not just in monetary terms but also at adding shelf life to the product or ensuring that there is reach from Farm to Fork. Namkeen consumption is high in Western and Northern states of India and even Southern states have picked up on consumption rate. Also the trend has shifted to using modern technologies from traditional methods. As foods category is growing in India, several food companies are capturing salty snacks market. Around 1,000 snack items are sold in India spanning various tastes, forms, textures, aromas, bases, sizes, shapes and fillings. Some 300 types of savories are sold in this country and overall snack product market (inclusive of sweetmeats) is estimated at Rs.25, 000 crore. The branded segment is increasing at the rate of 25 per cent/annum whereas the entire market is growing at the rate of 7 per cent...

PROJECT REPORT

snacks manufacturing

Address

Introduction

Project report for snacks manufacturing - namkeen- Farsan manufacturing

The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year. In India, the food sector has emerged as a high-growth and high-profit sector due to its immense potential for value addition, particularly within the food processing industry. Accounting for about 32 per cent of the country’s total food market, The Government of India has been instrumental in the growth and development of the food processing industry. The government through the Ministry of Food Processing Industries (MoFPI) is making all efforts to encourage investments in the business. It has approved proposals for joint ventures (JV), foreign collaborations, industrial licenses, and 100 per cent export oriented units.The Indian food and grocery market is the world’s sixth largest, with retail contributing 70 per cent of the sales. The Indian food processing industry accounts for 32 per cent of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. It contributes around 8.80 and 8.39 per cent of Gross Value Added (GVA) in Manufacturing and Agriculture respectively, 13 per cent of India’s exports and six per cent of total industrial investment. The Indian gourmet food market is currently valued at US$ 1.3 billion and is growing at a Compound Annual Growth Rate (CAGR) of 20 per cent. India's organic food market is expected to increase by three times by 2020. According to the data provided by the Department of Industrial Policies and Promotion (DIPP), the food processing sector in India has received around US$ 7.54 billion worth of Foreign Direct Investment (FDI) during the period April 2000-March 2017. The Confederation of Indian Industry (CII) estimates that the food processing sectors have the potential to attract as much as US$ 33 billion of investment over the next 10 years and also to generate employment of nine million person-days.

As foods category is growing in India, several food companies are capturing salty snacks market. Around 1,000 snack items are sold in India spanning various tastes, forms, textures, aromas, bases, sizes, shapes and fillings. Some 300 types of savories are sold in this country and overall snack product market (inclusive of sweetmeats) is estimated at Rs.25, 000 crore. The branded segment is increasing at the rate of 25 per cent/annum whereas the entire market is growing at the rate of 7 per cent. Namkeen is a product which is essentially known for three important things a) Taste b) Quality c) Variation.

Average annual per capita consumption of commercial snacks is 500g. Consumers from Western India are the leading snack consumers, followed by the North. An aspect that leads to quick movement of ethnic snacks is the consumption convenience or consume anywhere-anytime factor. Snacks/Namkeen can be eaten with cocktails, during teatime, as props with regular meals like breakfast or as starters with dinner.

 

Product / Services & process

Namkeen portfolio planned to launch contains : Besan Papdi, Poha Chiwda, Gathiya, Sev, Bhadang, Bhavnagari, Masala Bundi, Raita Bundi, Farsan, Masala Sev, Lasoon Sev, Soya Stick, Corn Chivda, Aloo Bhujiya, Falhari, Jira Gathiya, Khata Mita, Dal Mooth, Aloo Chatpata, Lasoon Farsan, Chakali, Bakarwadi.

Plant & Machinery / Equipments

We are planning to induct the following machineries and  the details ofthe vendors as follows

Machinery name    Vendor
Pulverizer     
Aata Chakki     
Homogenizer   
Liquid Fiiling Machine   
Powder Filling Machine    
Date Coder     
Ribbin Blender  
Namkeen Bhatti  
Namkeen Packaging Machine  
Chakali Machine     
Vibrator  
Air compressor  
Namkeen Machine     
Box packaging  

 

Market potential & Strategy

The Indian Food Industry is one of the fastest growing segments in Indian economy. Within the food sector itself, the RTE including Namkeen & Mithia holds the biggest share. This segment has the maximum value addition, not just in monetary terms but also at adding shelf life to the product or ensuring that there is reach from Farm to Fork. Namkeen consumption is high in Western and Northern states of India and even Southern states have picked up on consumption rate. Also the trend has shifted to using modern technologies from traditional methods. As foods category is growing in India, several food companies are capturing salty snacks market. Around 1,000 snack items are sold in India spanning various tastes, forms, textures, aromas, bases, sizes, shapes and fillings. Some 300 types of savories are sold in this country and overall snack product market (inclusive of sweetmeats) is estimated at Rs.25, 000 crore. The branded segment is increasing at the rate of 25 per cent/annum whereas the entire market is growing at the rate of 7 per cent. Namkeen is a product which is essentially known for three important things a) Taste b) Quality c) Variation.

Average annual per capita consumption of commercial snacks is 500g. Consumers from Western India are the leading snack consumers, followed by the North. An aspect that leads to quick movement of ethnic snacks is the consumption convenience or consume anywhere-anytime factor. Snacks/Namkeen can be eaten with cocktails, during teatime, as props with regular meals like breakfast or as starters with dinner. According to "India Ready-To-Mix Market Outlook, 2021", the overall market for ready-to-mix is growing with a CAGR of 13.22% from last five years. The market is divided into four segments viz. snacks mix, curry mix, dessert mix and others (rice & meals). Snacks mix dominates the industry with products like masala upma mix, rava dosa mix, rava idli mix, dhokla mix, poha mix, etc. The south Indian dosa and idli appear to be steaming up the competition with even multinationals acknowledging the strength of south Indian cuisine on Indian breakfast tables

Project at a glance

Name & Address of Unit

Namkeen - Farsan- manufacturing

Address

Details of unit
Email : youremail@gmailcom
Phone : 9909909
Constitution : Proprietership
Total project cost : *******
Fixed Capital : *******
Working Capital : *******
Total Bank loan : *******
Promoter(s) contribution : *******
Term loan : *******
Working capital loan : *******
Name & address of promoter(s)
Name : put your name
Address : your address
Phone : 99099
Designation : Proprietor
E-mail : youremail@gmail.com

Project Feasibility Ratio

Debt Service Coverage Ratio (Average) :1.87
Current ratio (Average) :2.63
Year 1Year 2Year 3Year 4Year 5
Current ratio 1.53 2.06 2.62 3.19 3.76
Quick ratio 1.13 1.56 2.10 2.64 3.18
Interest coverage ratio 3.87 5.55 7.00 9.48 14.71
Debt equity ratio 2.863 2.080 1.528 1.020 0.542
TOL/TNW 3.02 1.45 0.79 0.43 0.21
DSCR 1.65 1.86 1.90 1.94 1.97
Gross profit Sales Percentage % 29.23 % 28.54 % 28.18 % 27.86 % 27.50 %
Net profit Sales Percentage % 10.84 % 10.56 % 11.10 % 11.57 % 11.90 %
BEP in % of installed capacity % 49.90 % 27.12 % 27.12 % 27.12 % 27.12 %
BEP in sales of Rs 2,620,800.00 1,840,695.65 1,972,173.91 2,103,652.17 2,235,130.43
Return On Capital Employed 0.26 0.34 0.34 0.33 0.33

Project Feasibility graph

Revenue v/s Expense Expense Splitup
 
Revenue
 
Expense
Net profit Sales % Quick ratio

Project Cost

Sl. no Item Amount Rs
1 Pulverizer *******
2 Homogenizer *******
3 Liquid Fiiling Machine *******
4 Powder Filling Machine *******
5 Date Coder *******
6 Ribbin Blender *******
7 Namkeen Bhatti *******
8 Namkeen Packaging Machine *******
9 Chakali Machine *******
10 Vibrator *******
11 Air compressor *******
12 Namkeen Machine *******
13 Box packing *******
14 Office furnitures *******
15 Computer & printer *******
16 Electrification and cabling *******
17 Preliminary expenses *******
18 Package printing for drums *******
19 Working Capital *******
Total *******

 

Working Capital Computation

Sl. no Item Amount Rs
1 Consumables / stock in hand *******
2 Work in progress *******
3 Finished goods *******
4 Working expense. *******
5 Receivables/Sundry debtors *******
6 Payables *******
7 Total working capital *******
8 Own Contribution *******
9 Working capital loan *******

Annual Sales / Revenue

Sl. no Item Rate Quantity Unit Total Rs
1 Revenue from Sales ******* X 1020000 Number *******
Total *******

Total Yearly Expense

Sl. no Item Amount Rs
1 Rent *******
2 Production staff *******
3 Marketing *******
4 Repairs & Maintanance *******
5 Electricity *******
6 Office expense & utilities *******
7 Raw materials *******
8 Wages *******
Total *******

Application of Fund

Sl. no Item Subsidy % No. Rate Amount Rs
1 Pulverizer ******* 1 ******* *******
2 Homogenizer ******* 1 ******* *******
3 Liquid Fiiling Machine ******* 1 ******* *******
4 Powder Filling Machine ******* 1 ******* *******
5 Date Coder ******* 1 ******* *******
6 Ribbin Blender ******* 1 ******* *******
7 Namkeen Bhatti ******* 1 ******* *******
8 Namkeen Packaging Machine ******* 1 ******* *******
9 Chakali Machine ******* 1 ******* *******
10 Vibrator ******* 1 ******* *******
11 Air compressor ******* 1 ******* *******
12 Namkeen Machine ******* 1 ******* *******
13 Box packing ******* 1 ******* *******
14 Office furnitures ******* 1 ******* *******
15 Computer & printer ******* 1 ******* *******
16 Electrification and cabling ******* 1 ******* *******
17 Preliminary expenses ******* 1 ******* *******
18 Package printing for drums ******* 1 ******* *******
Total Investment *******
Total Subsidy *******
Net Investment *******

Means of Finance

Sl. no Item Amount
1 Term Loan *******
2 Working capital Loan *******
3 Total loan *******
4 Term Loan contribution *******
5 Working capital contribution *******

Profitability Statement

Year 1(!*) Year 2 Year 3 Year 4 Year 5
Revenue from operation
Sales ***** ***** ***** ***** *****
Add :
Closing stock 0.00 0.00 0.00 0.00 0.00
Total ***** ***** ***** ***** *****
Less :
Opening stock 0.00 0.00 0.00 0.00 0.00
Stock purchase ***** ***** ***** ***** *****
Salary ***** ***** ***** ***** *****
Repairs and maintenance charges ***** ***** ***** ***** *****
gas ***** ***** ***** ***** *****
ELECTRICITY bill ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Gross profit ***** ***** ***** ***** *****
Less :
Rent ***** ***** ***** ***** *****
Telephone/Postal &internet charge ***** ***** ***** ***** *****
Total ***** 0***** ***** ***** *****
Depreciation ***** ***** ***** ***** *****
Interest on TL ***** ***** ***** ***** *****
Interest on WC ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Profit before tax ***** ***** ***** ***** *****
Income Tax ***** ***** ***** ***** *****
Profit after tax ***** ***** ***** ***** *****

Cash flow statement

Cash Inflow Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
Capital 0.63 0.00 0.00 0.00 0.00 0.00
Subsidy 0.00 0.00 0.00 0.00 0.00 0.00
Termloan ***** 0.00 0.00 0.00 0.00 0.00
Profit before tax with interest 0.00 ***** ***** ***** ***** *****
Increase in WC loan 0.00 0.00 0.00 0.00 0.00 0.00
Depreciation 0.00 ***** ***** ***** ***** *****
Increase in Current liability 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Inflow ***** ***** ***** ***** ***** *****
Cash Outflow
Fixed Assets ***** ***** ***** ***** ***** *****
Increase in Current asset 0.00 0.00 0.00 0.00 0.00
Interest on TL 0.00 ***** ***** ***** ***** *****
Interest on WC 0.00 0.00 0.00 0.00 0.00 0.00
Income Tax 0.00 ***** ***** ***** ***** *****
Decrease in Term loan ***** ***** ***** ***** *****
Drawing 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Outflow ***** ***** ***** ***** ***** *****
Opening balance ***** ***** ***** ***** ***** *****
Net Cashflow 0.00 ***** ***** ***** ***** *****
Closing balance 0.00 ***** ***** ***** ***** *****

Balance sheet

Liability Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
A. Share holders funds
Capital ***** ***** ***** ***** ***** *****
Reserve & Surplus 0.00 ***** ***** ***** ***** *****
B.Non current Liabilities
Termloan ***** ***** ***** ***** ***** *****
C.Current Liabilities
Working capital loan 0.00 0.00 0.00 0.00 0.00 0.00
Account payable 0.00 0.00 0.00 0.00 0.00
Total Liability ***** ***** ***** ***** ***** *****
Asset
A. Non current Assets
Fixed Assets ***** ***** ***** ***** ***** *****
B. Current Assets
Inventory 0.00 0.00 0.00 0.00 0.00 0.00
Trade receivables 0.00 0.00 0.00 0.00 0.00 0.00
Cash and cash equivalence ***** ***** ***** ***** ***** *****
Total Asset ***** ***** ***** ***** ***** *****

Repayment of Term loan

Year Installment Outstanding at the beginning Principal repayment Interest Amount paid Outstanding at the end
1 1 ***** ***** ***** ***** *****
1 2 ***** ***** ***** ***** *****
1 3 ***** ***** ***** ***** *****
1 4 ***** ***** ***** ***** *****
1 5 ***** ***** ***** ***** *****
| | | | | | |
| | | | | | |
5 56 ***** ***** ***** ***** *****
5 57 ***** ***** ***** ***** *****
5 58 ***** ***** ***** ***** *****
5 59 ***** ***** ***** ***** *****
5 60 ***** ***** ***** ***** *****

Debt Service Coverage Ratio

Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Receipts
a).Net Profit 0.00 0.00 0.00 0.00 0.00
b).Depreciation 0.00 0.00 0.00 0.00 0.30
c).Interest on termloan 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00
Repayments
a).Loan Principal 0.00 0.00 0.00 0.00 0.00
b).Interest on termloan 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00
DSCR 0.00 0.00 0.00 0.00 0.00

Depreciation

Particulars Rate Year 1 Year 2 Year 3 Year 4 Year 5
Building 0.00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Computers/ Printers /Photocopier/Electronic gadget 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Furniture & fixtures 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Racks & storage/Interior works 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
new item 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
new 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Air-conditioning 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Other investments 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Total less depreciation 0.00 0.00 0.00 0.00 0.00
Total written down value 0.00 0.00 0.00 0.00 0.00

Conclusion

The project as a whole describes the scope and viability of the Trading industry and mainly of the financial, technical and its market potential.The project guarantee sufficient fund to repay the loan and also give a good return on capital investment. When analyzing the social- economic impact, this project is able to generate an employment of 5 and above. It will cater the demand of Trading and thus helps the other business entities to increase the production and service which provide service and support to this industry. Thus more cyclic employment and livelihood generation. So in all ways, we can conclude the project is technically and socially viable and commercially sound too.

HOW IT WORKS?

More than than 500 + people without any knowledge in finance created this report.

You can also download one of our sample report here 

View PDF

MORE REPORTS

About Us

Finline is an automated platform for financial documents. Your risk-free online tool to create a project report to apply for a bank loan. Be it a new business portfolio or an existing CMA for SME, we have solutions for entrepreneurs & enterprises at every stages

Our Contacts

info@finline.in
Trivandrum,
India

(+91) 884-837-7012

Need help ?
884-837-7012 OR Live Chat
974-669-3220 OR Live Chat