Project report for Spice powder

Introduction

Project report for Spice powder manufacturing is as follows

Spice processing and packaging are considered as a profitable business in India. Any individual can start a spice business as small, medium and large scale basis as per his or her investment capacity. Even a home-based spice business is also profitable in India. Additionally, you can start with one or two variety of spice. As your business grows, you can shift to a full-fledged spice processing company. India produces almost all the known spices. The country is the largest exporter of this commodity. As the spice is a mass consumption item mostly used in culinary preparation or seasoning of food products, its internal demand is increasing quite steadily. With changing lifestyle and especially with changes in food habits and the increase in income level, the use of powdered spices has increased. Of late, the market for ready-to-mix of spices has grown significantly. Spices are fast moving consumable items and have large potential...

Product / Services & process

The firm focused on producing Turmeric, Chilli, Cumin, Coriander, Black Pepper, Cardamom, Cloves & specific blend of spices for specific recipes. The list includes meat masala, chicken masala, Sabji masala, garam masala, chana masala, meat masala, Kasuri Methi, Pav bhaji masala, chat masala, biryani masala etc 

Raw materials / Consumables

The major raw materials are unground turmeric, black pepper red chilies, cumin, coriander etc. Additionally,  need to arrange the pouch as the main required packaging consumables. Also, needed corrugated cartoon for bulk packaging.

Plant & Machinery / Equipments

Land measuring around 150 sq.mtrs. is adequate with a built-up area of about 75 sq.mtrs. consisting of the main production area, packing section and go down. Spice grinding and processing generally demand simple machinery and equipment. Need to install disintegrator, spice grinder, pouch sealing machine and weighing scale. In a fully-automatic operation, the entire system is interconnected with a bucket elevator and conveyor belt.

Market potential & Strategy

The Indian spices market is pegged at Rs 40,000 crore annually, of which the branded segment makes up 15 percent. According to Technopak, national brands dominate the branded space market. And most prominent brands are Catch, Everest, Ramdev, among others.Increasing urbanization paired with a rise in the number of working women has reduced the time of cooking. Consequently, home-makers have started demanding readymade spice mixes such as sabzi masala, garam masala, chicken masala etc. This has augmented industry revenues. The spice mixes and branded spices entail greater profit margins, as compared to straight and unbranded spices. We can conclude, initiating a small scale home based spice business is a profitable investment opportunity for new entrepreneurs in India. The market is largely unorganized and the branded segment makes up about 15%.

 India exports close to 52 different spices. Spices exports from India grew to USD 626.8 million during the first quarter of 2015-16 as compared to approximately USD 511...

PROJECT REPORT

Spice powder

Address

Introduction

Project report for Spice powder manufacturing is as follows

Spice processing and packaging are considered as a profitable business in India. Any individual can start a spice business as small, medium and large scale basis as per his or her investment capacity. Even a home-based spice business is also profitable in India. Additionally, you can start with one or two variety of spice. As your business grows, you can shift to a full-fledged spice processing company. India produces almost all the known spices. The country is the largest exporter of this commodity. As the spice is a mass consumption item mostly used in culinary preparation or seasoning of food products, its internal demand is increasing quite steadily. With changing lifestyle and especially with changes in food habits and the increase in income level, the use of powdered spices has increased. Of late, the market for ready-to-mix of spices has grown significantly. Spices are fast moving consumable items and have large potential. There has to be a wide-spread network of dealers or retailers backed up by advertisements in local media  The export market for Indian spices is also growing. Spices from India are going places, with exports on course to top $3 billion by 2016-17.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 and commercial food service businesses such as hotel, restaurant etc.

Product / Services & process

The firm focused on producing Turmeric, Chilli, Cumin, Coriander, Black Pepper, Cardamom, Cloves & specific blend of spices for specific recipes. The list includes meat masala, chicken masala, Sabji masala, garam masala, chana masala, meat masala, Kasuri Methi, Pav bhaji masala, chat masala, biryani masala etc 

Raw materials / Consumables

The major raw materials are unground turmeric, black pepper red chilies, cumin, coriander etc. Additionally,  need to arrange the pouch as the main required packaging consumables. Also, needed corrugated cartoon for bulk packaging.

Plant & Machinery / Equipments

Land measuring around 150 sq.mtrs. is adequate with a built-up area of about 75 sq.mtrs. consisting of the main production area, packing section and go down. Spice grinding and processing generally demand simple machinery and equipment. Need to install disintegrator, spice grinder, pouch sealing machine and weighing scale. In a fully-automatic operation, the entire system is interconnected with a bucket elevator and conveyor belt.

Market potential & Strategy

The Indian spices market is pegged at Rs 40,000 crore annually, of which the branded segment makes up 15 percent. According to Technopak, national brands dominate the branded space market. And most prominent brands are Catch, Everest, Ramdev, among others.Increasing urbanization paired with a rise in the number of working women has reduced the time of cooking. Consequently, home-makers have started demanding readymade spice mixes such as sabzi masala, garam masala, chicken masala etc. This has augmented industry revenues. The spice mixes and branded spices entail greater profit margins, as compared to straight and unbranded spices. We can conclude, initiating a small scale home based spice business is a profitable investment opportunity for new entrepreneurs in India. The market is largely unorganized and the branded segment makes up about 15%.

 India exports close to 52 different spices. Spices exports from India grew to USD 626.8 million during the first quarter of 2015-16 as compared to approximately USD 511.2 million in the same period last year. India exported 215,215 tonnes of spices during the first quarter of FY16 as compared with 213,443 tonnes in the same period last year. The Indian spices market is projected to reach approximately USD 18 billion by 2020 with growth in the sector is expected to be led by branded spices and spice mixes. The Indian government is aggressively promoting spice exports through various initiatives such as setting up of spice parks.

Project at a glance

Name & Address of Unit

Spice powder

Address

Details of unit
Email : youremail@gmail.com
Phone : 000000
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 : Your name
Address : Address
Phone : 000000
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 Building cost *******
2 Grinders & Motors *******
3 Computer, CCTV, office furnitures & security systems *******
4 Electrification *******
5 Preliminary expenses *******
6 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 110400 Kilogram *******
Total *******

Total Yearly Expense

Sl. no Item Amount Rs
1 Salary *******
2 Accounts and admin *******
3 Electricity *******
4 Office expense & utilities *******
5 Raw material purchase *******
6 Wages *******
7 Other expenses *******
Total *******

Application of Fund

Sl. no Item Subsidy % No. Rate Amount Rs
1 Building cost ******* 1 ******* *******
2 Grinders & Motors ******* 4 ******* *******
3 Computer, CCTV, office furnitures & security systems ******* 1 ******* *******
4 Electrification ******* 1 ******* *******
5 Preliminary expenses ******* 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