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 - 600 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
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
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 1000 2 Raw material store 400 3 Other ingredients store room 100 4 Finished goods store room 400 5 Packaging material storage room 100 6 Laboratory 100 7 Machinery spares room 100 8 Office space 100 9 Toilet and miscellaneous space 200 10 Total 2500 3
Lease rent Rs. 6.00 per square foot Total rent per month Rs. 15000 Lease advance Rs. 75000 11. Costing of machinery and equipment 1 Tray drier and accessories 1.600 2 Hammer mill with accessories 1.560 3 Stainless steel sigma mixer 0.600 4 Weighing scales and working tools 0.200 5 Sealing machines 0.150 6 Total 4.110 11 Laboratory equipment 0.500 12 Grand total machinery and equipment 4.610 12. Project cost 1 Land On lease 2 Civil works On lease 3 Plant machinery 4.110 4 Laboratory equipment 0.500 5 Transport vehicle ( Tata Ace) 3.760 6 Pollution control equipment 0.000 7 Energy conservation equipment 0.000 8 Cost of power connection 0.200 9 Cost of electrification 0.300 10 Erection and commissioning 0.300 11 Cost of machinery spares 0.100 12 Cost of office equipment 1.000 13 Deposits if any 0.500 14 Company formation expenses 0.100 15 Gestation period expenses 0.500 16 Sales tax registration expenses 0.100 17 Initial advertisement and publicity 10.000 18 Contingencies 0.500 19 Working capital margin money 3.000 20 Total 24.970 4
13. Working capital requirements per month a. Salaries and wages Sl Description No of persons Total salary / month (Rs. lakhs) 1 Production Manager (female) 1 0.100 2 Production supervisor (female) 1 0.080 3 Skilled workers (female) 1 0.050 4 Unskilled workers (female) 2 0.060 5 Packing workers (female) 2 0.040 6 Administrative staff (female) 1 0.080 7 Sales staff 1 0.100 8 Driver 1 0.060 9 Total 10 0.570 b. Raw material requirement per month Sl Description Qty (kgs) 1 Gulab Jamun Mix Rate / kg (Rs) Value (Rs. lakhs) A Maida 3060 14.00 0.428 B Skimmed milk powder 2040 120.00 2.448 2 Rava Idly Mix A Semolina 5050 16.00 0.808 B Condiments and spices 252 150.00 0.378 C Vanaspathi 50 70.00 0.035 3 Puiliyogare mix A Dextrin 5000 15.00 0.750 B Salt, spices, sugar 25 25.00 0.063 C Groundnuts 500 40.00 0.200 4 Total raw materials 15977 5.110 5
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) 1.50 2.250 2 Cartons and straps 625 nos 20.00 0.125 3 Total 2.375 Total raw + packaging material = Rs. 7.485 d. Utilities per month 1 Power 2000 kwh @ Rs. 5.50 per unit 0.110 2 Water 0.010 3 Boiler fuel 0.000 4 Total utilities 0.120 e. Contingent expenses per month 1 Rent for processing shed 0.150 2 Postage and stationery 0.020 3 Telephones, fax etc. 0.050 4 Consumable stores 0.020 5 Repairs and maintenance 0.030 6 Local transports, loading and unloading 0.100 7 Advertisement and publicity @ 5% of sales 0.750 8 Insurance 0.008 9 Sales expenses @ 1% of sales 0.150 10 Miscellaneous expenses @ 1% of sales 0.150 11 Trade incentives @ 2% of sales 0.300 12 Taxes @ 4% 0.600 13 Total contingent expenses 2.328 6
f. Total working capital requirement per month 1 Salaries and wages 0.570 2 Raw material and packaging material 7.485 3 Utilities 0.120 4 Contingent expenses 2.328 5 Total 10.503 14. Means of finance 1 Total Project Cost 24.970 2 Equity 8.323 3 Debt 16.647 4 Working capital margin money 3.000 15. Financial analysis 1 Total recurring cost per year 126.036 2 Depreciation on land and building 0.000 3 Depreciation on machinery 0.561 4 Depreciation on furnaces 0.000 5 Depreciation on moulds and fixtures 0.020 6 Depreciation on office equipment 0.100 7 Interest on long term loan @ 12% 1.997 8 Interest on short term borrowings@ 12% 0.900 9 Total cost of production 129.614 16. Turnover per year Sl Item Qty Rate/unit (Rs) Total Rs. lakhs 1 Instant Mixes 180000 kgs 80 144.00 7
17. Viability analysis Sl Description Value 1 Net profit before income tax (Rs. lakhs) 14.386 2 Net profit ratio 10.0% 3 Internal rate of return 24.6% 4 Break even percentage 58% 5 Debt service coverage ratio 1.996 List of equipment for Instant Mixes 1. Sri Valsa Engineering Works, 36, Nanda Nagar, Singanallur, Coimbatore 641005. Tamil Nadu.; Tel: 0422-2574268; Fax: 0422-2574268 8