Project Profile on

: Spice Grinding

Installed Capacity

: 96MT/annum

Prepared for

Prepared on :

Prepared by :
Business Development Department
Orissa State Financial Corporation
OMP Square, Cuttack-753 003
Tel. Phone : 2444192
E-mail : osfcho@osfcindia.com

//1//
Introduction:
India is known as home of spices and among the major exporter of the
commodity. Some of the Spices abundantly available in India are Chilli, Turmeric,
Coriander, Black pepper, Ginger which play an important role in enhancing the
flavors and taste of processed foods. They are also used in medicine because of
their digestive properties. Spice is used in natural form or in processed form
individually or blended in different proportion for different taste. Grounded spices
powders in different formulation are used for different purposes to name a few
are samber powder, Rasam, Curry mix, Chana masala etc.
BIS standards:
IS 2445-1984
Chilli powder
IS 2446-1980
Turmeric powder
IS 1909- 1961
Curry powder
In Orissa and Andhra Pradesh Spice like Chilli, Turmeric, Ginger are
cultivated abundantly.
Market:
Ground and processed spices find significant place in domestic as well in
export market. India is one of the leading exporters of spices. The market of
export of spices is encouraged in processed form as it will bring more value
addition to the unit price of whole spices. The demand of spice powder is
increasing day by day with the changing attitude, convenience as well as
increasing in purchasing power of the people. The product finds good market in
urban areas as well as rural area also.
Project Outline:
A. Land:
10 decimal of land is necessary for the project keeping the future
requirement. (Own)
B. Building detail and cost:
Work shed 1200 sft
Office & store 300 Sft
Well pump motor

@ 450/sft
@ 450/sft
Ls

5.40
1.35
0.20
6.95

Specification: Brick cement mortar wall RCC pillar AC sheet roofing over angle
Iron truss.
C. Plant & Machinery:
a . Micro pulverize with 5 HP motor
Disintegrator with 7.5 HP motor
b. Hot air drier cabinet type electrically
Operated with temp. Controlled

2
1

0.80
0.30

0.40

1
1
1
2 pair
1
1
1
1
1
2
1
Lot
Total

0.06
1.35
0.04
1.50
0.20
0.15
0.10
0.02
0.08
0.30
1.50
0.50
7.30

//2//
c.Rice Huller No.8
d. Oil Expeller 7 Bolt Heavy
e. Filter Press
f. Oil Ghani Bearing Type
g. Disintegrator
h. Pulley
c. platform type weighing scale 300 kg. Capacity
d. counter scale balance up to KG
e Sieving machine
f Heat sealing machine for plastic bag
g. Form filling and sealing machine
h. Testing equipment
D. Electrification & installation:

0.75

E. Misc Fixed assets: furniture & fixture

0.20

F. Preliminary & pre operative expenses

0.80

G. Total Fixed cost;

Land
Building & civil construction
Plant & machinery
Electrification & installation
Misc.fixed asset

Own
6.95
7.30
0.75
0.20
15.20

H. Raw material, consumable and packing ;( Month)

Particular
Chillies
Turmeric

Quantity
3
2

Rate
0.45
0.40

Amount
1.35
0.80

Coriander
1
0.30
Pepper
1
0.50
Ginger
1
0.30
Packaging material, cartoon
Ls
Mustard Seeds (On service Charge)

0.30
0.50
0.30
0.25
3.50

I. Utility & services;

a. Power: The power requirement is 15 KW load And the monthly
expenses toward power consumption will be 15* 8*25*4=Rs.0.12 lakh
b. Water: The water requirement is around 250KL per month.
// 3 //
J : Man power
Sl No.
1
2
3
4

Designation
Supervisor/self
Skill worker
Unskilled worker
Office Asst.

H.. working capital detail;

Particular
Month
Raw material
2
Working expenses 1
Goods in process 0.25
Goods in store
0.25
Sundry Debtor
1
I. Project Cost:
Land including DevelopmentBuilding & Civil constructionPlant & machineryElectrification & installationMisc.fixed assetsPrel. Preoperative expensesContingency for price escalationMargin Money for WC-

Total
7.00
0.35
0.88
0.88
3.17
12.28
Own
6.95
7.30
0.75
0.20
0.80
0.40
3.40
19.80

No
1
4
4
1
10

salary (month)
0.05
0.16
0.10
0.03
0.34

Bank
5.25
0.00
0.66
0.66
2.29
8.86

margin
1.75
0.35
0.22
0.22
0.88
3.42

J. Means of Finance:
Description
Term Loan
Promoter contribution

%age
75
25

Amount
11.50
8.30
19.80

K. implementation schedule;
Selection of site
Collection of information on market, P/M
Utility
Sanction of Loan
Clearance from diff. authority
Development, Civil construction
Procurement & Installation of P/M
Commissioning & Trial Run
Commercial production

0-1week
0-1week
0-2 weeks
2-5 week
2-22 weeks
5-24 weeks
24-25 weeks
25-26 weeks
// 4 //

L. Manufacturing Process:
The process of manufacturing involves some of the process like Cleaning,
washing, drying, grading, Curing, grinding, sieving, Mixing and packing of spices
such as Chilli, Pepper, Turmeric, Coriander, cloves, fenugreeks seed, Ginger etc
either individually or in combination with other spices. There are various blending
ratio of different spices for different curry powder and its combination also vary
from region to region. The proportion and the spices in a particular mix depend
on individual manufacturers.
Drying is the most important in spice processing. The temperature in the driers
should not be allowed to exceed 50-60 c. Higher temperature results in off flavors
due to volatile constituents. Drying reduces the moisture content of the spices to
8-10 percent at which level deterioration in storage does not take place and
grinding is facilitated. The dried spices are graded .After grading, the spices are
ground in a hammer mill. For Retail marketing the spices are packed in polythene
bag or attractive paper board packet. Bulk packaging is carried out in polythene
line jute bag.
As regard to Oil, this sector shall be purely on Service basis.
M. Detail of sale :( annum)
Description
Chilli powder
Turmeric powder

Qty (MT)
36
24

rate
0.90
0.60

Amt
32.40
14.40

Mixed curry powder 36

Service charge of Mustard oil (L.S)

1.00

36.00
8.00
90.80

N. Cost of production: (annum)

Raw material consumable & packaging
Manpower
Power
Repair & maintenance
@3%
Adm. Overhead
Depreciation
P/m, Elect, Misc. Fixed asset
@ 10%
Civil construction
@ 5%
Interest
Term loan
@ 12%
Working capital
@12%
Insurance
@1%

42.00
4.08
1.44
0.45
0.50
0.94
0.73
0.21
2.40
1.38
1.02
0.25
---------52.06 say 52 lakh

// 5 //
O. Profitability analysis (annum)
Gross Profit (M-N)
Tax @20%
Net profit

37.20
7.44
29.76

P. Ratio analysis;
i. Net profit ratio=Net profit/Turn over*100=29.76/90.80*100=
ii. Rate of return=Net profit/investment*100=29.76/15.60*100=

32.77%
190.76%

iii. Break even analysis

Computation of fixed cost
Depreciation
Repair & maintenance
Interest on loan
40% salary
40% of other
BEP =FC*100/FC+NP=6.26*100/4.94+29.76=

0.94
0.45
2.40
1.62
0.85
6.26
18.04%

Q. Basis of presumption:
The project is based on single shift basis having 300 working day /annum.

The labour wage has been taken as per market rate

The profitability analysis has been computed taking 100 utilization capacities
R. Address of Machine supplier:
i.
M/s Batliboi and Co Ltd.
PB No.1719, MG Road
Ernakulam, Cochin-682016
ii.
M/s Jaymes Engineering Works
MG road, Ernakulam-16
iii.
Avery & Co.
Ballard Estate
Mumbai
iv.
Hindustan Furnace
Marar Lane, Trichur-1
v.
Kerala Scientific Glass works
Industrial Estate, Ollur
Chemida India
69,Cuff parade Mumbai-5
vi.
PRS technology Pvt.Ltd. Mumbai.

Vii. S.P Eng. Corporation

79/c,Latouche Road
P.B No 218, Kanpur
viii. Punjab Engg. Works
32, Ramakrishna samadhi
Road, Kankurgachi

Kolkata - 54