Feasibility Study
Feasibility Study
Feasibility Study
ABSTRACT
1.0Technical Feasibility
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1.2Technology.
Technology used
using super critical fluid Extraction Technology (CO2).
Pepper
Garbled pepper
Dry white pepper
Dehydrated dry green pepper
Green pepper in Brine
Steamed graded black pepper
Oleoresin
essential oil
co2 extract
spice filling powder
Out put
Sales from essential oil= 1*17000= 17000
D
Out put
Sales from co2 extraction= 1*20000 =20000 E
Purchase Manufacturing,
Expense processing& packing
No product name Quantity per kg expenses per day
1 cardamom 1000 550 550000
Graded
2 cardamom 700 30000 30000
branded
3 cardamom 120 10000 10000
4 oleoresin 1 700 700
4 essential oil 1 850 850
5 co2 extract 1 200 200
spice filling
7 powder 25 300 300
TOTAL 591750
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Cleaning Waste 2% = 20 kg
Green pepper in brine =480*15=7200
purchase
N product Quantit production cost per daily
o name y cost per kg kg expenses
raw material
1 purchase 1000 85 85000
green pepper
2 in brine 480 15 7200
dry green
3 pepper 122.5 80 9800
4 total 102000
Total sales
800kg is sorted out and sieved with a mesh size 4.25mm (TGEB)
and sort out all the damaged berries. Then the pepper is steamed
Production cost for steamed black pepper=800*40
= 32000
Sales from steamed black pepper =800*550
Out put
= 440000 A
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Out put
Sales from oleoresin =1 *9000 = 9000
D
11250 G
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Total production expenses
purchase
expenses production daily
No product name Quantity per kg cost per kg expenses
raw material
1 purchase 2000 380 760000
2 white pepper 450 20 9000
stamed black
2 pepper 800 40 32000
grabled
3 pepper 400 60 24000
4 oleoresign 1 160 160
5 essential oil 1 160 160
6 co2 extract 1 175 175
spice filling
7 powder 150 5 750
Total 826245
Total sales
Daily
No product name Quantity sales per kg sales
stamed black
2 pepper 800 550 440000
3 branded spices 400 475 190000
4 white pepper 450 680 306000
4 oleoresign 1 9000 9000
5 essential oil 1 15000 15000
6 co2 extract 1 20000 20000
7 spice filling powder 150 75 11250
Total 991250
3.0Market Feasibility
The client's business needs are analyzed, information about project
participants is collected, and the requirements for the system
are gathered and analyzed. The client's expectations for
system implementation are studied and the proposed solution
is offered.
3.1Products
Graded spices and branded spices are used in food industry. Spice
oils and oleoresins can be used to advantage wherever spices are
used, except in those applications where the appearance or filler
aspect of the spice is of importance. 1Kg of oleoresin is equivalent
to 100 kg of raw spice and the oleoresin contains all the goodness
of that spice. Spice extracts were developed to meet the new
demands of the Food Processing Industry. They have the
following advantages:
1.Consistency in flavour.
2.Not affected by Bacterial contamination.
3. longer shelf life.
4.Easy for storage and handling.
5.Full release of flavour during cooking.
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6.Can easily be blended to achieve the desired characteristics
7.Delicacy and freshness close to natural.
8.High potency of active components.
9.Pollution free process.
10.No residual solvent
11.No residual pesticide
After examined the above spices export data and Graph shows
that the market conditions are favorable for our company to
start spices export business.
Demand forecasting
For the calculation of the demand we used different survey
methods
Survey methods
we conduct direct interview with potential consumers, organization
who supply the spices products, hyper market companies spices
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trading companies etc. all of these companies agree to buy our
products on certain conditions
Hyper markets
1. Spencer’s
2. Reliance
3. Future Groups
4. Maxis
5. Spar foods hyper market
3.13 Advertising
3.14Competition
All the licenses are obtained from the local authorities in time
At this level, the company believes that the proposal to start spices
processing and production of spices value added products is legally
feasible
5.0 Financial Feasibility
As per the project report we estimate a total capital
requirements of 2crores This amount is used for starting and
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managing exporting of spices and its value added products. The
financing is required for the maintenance, work on site preparation
and modifications, to setup factory buildings equipment and
machinery purchases, power connections, licences,raw material
purchase and to cover expenses in the first year of operations.
5.2Working Capital
Working Capital includes the costs of raw materials,
packaging, staff training, product promotion Startup salary
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for 3 months, Preliminary Factory operating cost, Reserve
fund for Emergency purchase etc . that have to be made
before the business begins to generate income from sales of
the product
WORKING CAPITAL
No. of
Days/Month
A raw material s Quantity rate/kg total
1 cardomom (25days) 4 1000 550 2200000
2 black pepper(2) 4 2000 380 3040000
Startup salary for 3
B months 1140000
Preliminary Factory
C operating cost 220000
Reserve fund for
D Emergency purchase 900000
7500000
6.0 Observations
6.1Conclusion
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All the available data that we have examined and come to the conclusion
that we can find the market easily . The full part of the business, including
profitability and annual production chart being examined. The study shows
that the project is 100 % feasible . Although, due care and diligence has
been taken to compile this document, the contained information may vary
due to any change in any of the concerned factors, and the actual results may
differ substantially from the presented information
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Feasibility Report
Prepared for