INSTANT MIXES Introduction Market Packaging Production capacity Sales revenue Production process outline.
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1 INSTANT MIXES 1. Introduction Instant mixes form a large range of convenience foods for housewives. Being easy to use without much terminal processing, housewives find it very convenient to use. It helps them to save time and effort and relieves them of the tedious jobs of collecting various ingredients, cleaning and sorting them and preparations. Modern households also do not offer the facilities necessary for traditional processing and hence these products have gained instant acceptance. Instant mixes can be used for preparation of various snack foods, sweets and preparations with rice. For example, instant dosa or vadai mix can be used conveniently as a tea time snack. Preparations of gulab jamun mix can be used during festive occasions and puliyogare mix as a change during supper. 2. Market The major market outlets are the self service departmental stores, and A and B class retail outlets. Moreover, export prospects are also good. 3. Packaging The processed product is packed in metallized laminated polyester-poly pouches. The quantity packed per pouch is 100 grams or 200 grams. The pouches are placed in paperboard cartons and strapped prior to dispatch. 4. Production capacity The plant will be in operation for one shift a day. Estimated production per day kilograms. The total production per month will be 15 M.T while the annual production is estimated at 180 M.T The time period required for achieving full capacity utilization is one year. 5. Sales revenue The ex-factory selling price will be Rs. 16 per pouch of 200 grams or Rs. 80 per kilogram inclusive of taxes. The estimated annual sales revenue will be Rs. 144 lakhs. 6. Production process outline. 1
2 The products considered for production are : Instant Gulab Jamun Mix Instant Rava Idli Mix Instant Puliyogare Mix They have the maximum market demand among the instant mixes. a. Instant Gulab Jamun Mix It is a mixture of refined wheat flour; skimmed milk powder and sodiumbicarbonate. The mix is kneaded into a dough and into small balls. They are then fried in ghee or oil and soaked in sugar syrup before being served. b. Instant Rava Idli Mix It is a product comprising mainly of sooji or rava. The semolina is roasted and seasoned with salt, curry leaves, mustard and asafoetida. The mix is added to curd, whipped and steamed in an idli pan. The rava idlis obtained are served hot with chutney. c. Instant Puliyogare Mix The product is a mixture of pre-gelatinised starch, tamarind powder, salt, spices, roasted groundnuts, curry leaves and sesame seeds. The product is mixed with rice and served. 7. Quality specifications a. Gulab Jamun Mix Moisture - 10% maximum Ash - 2% maximum Acid insoluble ash - 0.1% maximum Mold and fungal growth Total plate count - 30,000 per gram Coliforms Streptococci Salmonella 2
3 b. Rava Idli Mix Moisture - 12% maximum Ash - 5% maximum Acid insoluble ash - 0.1% maximum Mold and fungal growth Total plate count - 30,000 per gram Coliforms Streptococci Salmonella c. Puliyogare Mix Moisture - 12% maximum Ash - 5% maximum Acid insoluble ash - 0.1% maximum Mold and fungal growth Total plate count - 30,000 per gram Coliforms Streptococci Salmonella 8. Pollution control measures Not necessary as there are no pollutants or effluents. 9. Energy conservation measures Common measures will do. 10. Land and construction cost for the proposed unit The proposed unit is to be set up in a leased area. The total leased area is 2500 square feet vide details given below. Sl Description Sq. feet 1 Processing area Raw material store Other ingredients store room Finished goods store room Packaging material storage room Laboratory Machinery spares room Office space Toilet and miscellaneous space Total
4 Lease rent Rs per square foot Total rent per month Rs Lease advance Rs Costing of machinery and equipment 1 Tray drier and accessories Hammer mill with accessories Stainless steel sigma mixer Weighing scales and working tools Sealing machines Total Laboratory equipment Grand total machinery and equipment Project cost 1 Land On lease 2 Civil works On lease 3 Plant machinery Laboratory equipment Transport vehicle ( Tata Ace) Pollution control equipment Energy conservation equipment Cost of power connection Cost of electrification Erection and commissioning Cost of machinery spares Cost of office equipment Deposits if any Company formation expenses Gestation period expenses Sales tax registration expenses Initial advertisement and publicity Contingencies Working capital margin money Total
5 13. Working capital requirements per month a. Salaries and wages Sl Description No of persons Total salary / month (Rs. lakhs) 1 Production Manager (female) Production supervisor (female) Skilled workers (female) Unskilled workers (female) Packing workers (female) Administrative staff (female) Sales staff Driver Total b. Raw material requirement per month Sl Description Qty (kgs) 1 Gulab Jamun Mix Rate / kg (Rs) Value (Rs. lakhs) A Maida B Skimmed milk powder Rava Idly Mix A Semolina B Condiments and spices C Vanaspathi Puiliyogare mix A Dextrin B Salt, spices, sugar C Groundnuts Total raw materials
6 c. Packaging material requirement per month Sl Description Qty Rate / unit Rs) 1 Primary packaging 1,50,000 material metallized nos polyester poly standee pouches Value (Rs. lakhs) Cartons and straps 625 nos Total Total raw + packaging material = Rs d. Utilities per month 1 Power 2000 Rs per unit Water Boiler fuel Total utilities e. Contingent expenses per month 1 Rent for processing shed Postage and stationery Telephones, fax etc Consumable stores Repairs and maintenance Local transports, loading and unloading Advertisement and 5% of sales Insurance Sales 1% of sales Miscellaneous 1% of sales Trade 2% of sales % Total contingent expenses
7 f. Total working capital requirement per month 1 Salaries and wages Raw material and packaging material Utilities Contingent expenses Total Means of finance 1 Total Project Cost Equity Debt Working capital margin money Financial analysis 1 Total recurring cost per year Depreciation on land and building Depreciation on machinery Depreciation on furnaces Depreciation on moulds and fixtures Depreciation on office equipment Interest on long term 12% Interest on short term borrowings@ 12% Total cost of production Turnover per year Sl Item Qty Rate/unit (Rs) Total Rs. lakhs 1 Instant Mixes kgs
8 17. Viability analysis Sl Description Value 1 Net profit before income tax (Rs. lakhs) Net profit ratio 10.0% 3 Internal rate of return 24.6% 4 Break even percentage 58% 5 Debt service coverage ratio List of equipment for Instant Mixes 1. Sri Valsa Engineering Works, 36, Nanda Nagar, Singanallur, Coimbatore Tamil Nadu.; Tel: ; Fax:
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