16

NOODLES

PRODUCT CODE : N.A.

QUALITY AND STANDARDS : As per IS 1485:1976, PFA Act and GMP
PRODUCTION CAPACITY : Qty.: 150 MT per annum
Value: Rs. 39,37,500
MONTH AND YEAR : May, 2003
OF PREPARATION
PREPARED BY : Small Industries Service Institute
H. Thangmawizuwala Building,
Republic Road, Aizwal,
Mizoram - 796001
Phone : 0389-2323448

INTRODUCTION especially the younger generation.

6. It is ready-to-eat product.
Fresh noodles are an extruded product
7. Convenience of preparation.
made of tapioca flour and maida. They
are long thread-like of 0.22 to 0.4 mm. Keeping in view the above factors, the
thickness. This is a eatable food item demand of this product is likely to
under instant food products and very increase manifold in the coming years.
popular now-a-days as break fast food.
It is one of the most conventional foods B ASIS AND PRESUMPTIONS
available in the market. 1. Number of hours : 8 hrs.
per day
MARKET POTENTIAL 2. Number of : 300 days
Working Days
Noodles and chowmein, a ready-to-eat in a year
food item is very popular in developed
3. Time period for : 5 years
countries and now it has created good achieving full
market potential in our country also and capacity
is becoming a popular item. The factors utilization
governing its demand are: 4. Labour Wages : As per Wages
1. Increasing population of the country. Act of the State
Government
2. Rapid industrialization in the country.
5. Interest on capital : 14% per
3. Increase in the purchasing capacity investment annum
of the people. 6. Margin Money : 25% of the
4. Durability of the product. Working
5. Change in people’s eating habits Capital
 NOODLES 95

7. Pay back period : 7 years Salt : 150 gms.

of the Project Edible colour : Q.S.
IMPLEMENTATION SCHEDULE Process in Detail
1. Building construction 3 Months Dry Mixing
2. Preparation of Project 1 Month The average moisture content of dry
report and SSI Registration mixes is 10-11%. The three ingredients
maida, starch and soda bicarbonate are
3. Financial assistance 3 Months
blended in a vertical mixer alongwith
4. Arrangement of power 1 Month edible colour.
5. Acquisition of Machinery 1 Month
Dough Formation
6. Installation of Machinery 15 Days
Satisfactory dough can be made from
7. Appointment of Staff 1 Month the above blend only by using boiled
and Labour water, when a part of the starch is
8. Trial production and 2 Weeks gelatinized. The ingredients are mixed
shooting problems in dough mixer for about 12 to 15
minutes.
9. Commercial production 1 Week
after trial Extrusion
production
The kneaded dough is then
10.Total time to start 3 to 6 transferred to noodles making machine
commercial production Months where extruded material of desired
shape and length is obtained by using
TECHNICAL ASPECTS an appropriate type of die and suitably
adjusting the distance between the dye
Process of Manufacture surface and cutting blade. The moisture
Noodles is the term being used to content of the product at this stage is
designate products made from blend of about 33%.
flours, the major component of which
is tapioca flour and maida. A noodle is Pre-drying
manufactured in different sizes, hollow The cut noodles goods from the
as well as solid, for different cooking cutting machine fall on wooden trays.
methods. Some are made for cooking The product undergoes surface drying
and others are for frying. The noodles and becomes sufficiently hard enough
proposed in this Profile are for frying. to be handled without sticking or being
crushed. The moisture content of the
Typical Blending for 16 Kg. of Product pre-dried product is about 29.5%.
Maida : 8 Kgs.
Drying
Starch : 7 Kgs.
The pre-dried product is finally semi-
Sodium bicarbonate : 850 gms. dried. The moisture content of the
96 NOODLES

product will be 17%. Drying is done by Energy Conservation

exposure to indirect sunrays or placing Proper insulation is to be made to
in shade. The noodles dried as above reduce the heat loss during drying and
do not have a satisfactory cooking quality steaming processes.
and undergo a heavy loss on cooking.
This can be reduced considerably by FINANCIAL ASPECTS
giving heat treatment to the product.
This is optioned as this gives a brown A. Fixed capital
colour to the product which may not be
i) Land and Building Amount (In Rs.)
appealing to some of the customers.
Recent development in the Land 1000 Sq. Mts. @ Rs. 100 1,00,000

manufacture of noodles is that the Cost of construction of shed 6,75,000

product is exposed to steam. The 225 sq mtr. @ Rs. 3000 Sq. Mtr.
steamed product has three advantages: Total 7,75,000
(1) longer shelf-life (2) harder grain, and
ii) Machinery and Equipment
(3) better eating quality than unsteamed
product. Steaming is done by exposing Sl. Description Amount
the product in thin layer to steam for No. (In Rs.)

about 15 minutes. The steamed and 1. Vertical type powder 22,000

subsequently dried product has a mixer 500 kgs. cap
with motor complete
moisture content of about 10%. The
steaming is done before the product is 2. Dough mixer blade type 44,000
75 kgs. cap
semi-dried.
3. Noodles making power 2,20,000
Quality Control and Standards operated machine with
different size die-heads
The product must meet PFA
4. Wooden trays 1000 pcs. size 2'×3' 16,500
specifications. However, BIS specification
for Noodles is IS: 1485:1976. 5. Plastic Buckets 4 each of 1,000
20 liters cap.
Production Capacity 6. Aluminium/Galvanised 34,500
iron water tape pipe line fittings
Qty. per Value per
annum annum 7. Water boiler-fuel heated 11,000
75 litres cap.
(In Rs.)
8. Installation of machinery 3,000
Fresh Noodles 150 MT 39,37,500
and equipment

Motive Power 30 HP 9. Office furniture etc. 22,000

Total 3,74,000
Pollution Control
iii) Pre-operative Expenses Amount
It is not required as the product is (In Rs.)
not causing any air, water and sound
pollution. However, entrepreneurs Legal expenses, start-up expenses, 35,000
establishment cost, consultancy fee,
should obtain NOC from concerned estimate fee, interest and
State Pollution Control Board. trial runs, etc.
 NOODLES 97

Total Fixed Capital Amount iv) Other Contingent Expenses Amount

(In Rs.) (In Rs.)

1. Land and Building 7,75,000 i) Postage and Stationery 1,000

ii) Telephone 1,000
2. Machinery and Equipment 3,74,000
iii) Consumable Stores 1,000
3. Pre-operative Expenses 35,000
iv) Repairs and Maintenance 1,500
Total 11,84,000
v) Transport Charges 7,000
vi) Insurance 1,500
B. Working Capital (per month)
vii) Sales Expenses 3,000
i) Personnel
viii) Miscellaneous Expenditure including 7,000
Sl. Designation No. Salary Total advertisement, legal fee and
No. (In Rs.) (In Rs.) entertainment charges

i) Manager 1 5000 5,000 Total 23,000

v ) Total Recurring Expenditure 2,18,475
ii) Supervisor 1 2500 2,500
(per month)
iii) Chemist 1 2500 2,500
vi) Total Working Capital 6,55,425
iv) Clerk 2 2500 5,000 (for three months)

v) Peon/Watchman 1 1500 1,500

C. Total Capital Investment
vi) Skilled Workers 2 2000 4,000
Amount
vii) Unskilled Workers 4 1500 6,000 (In Rs.)
Total 26,500 i) Fixed Capital 11,84,000

Perks @ 15% of Salaries 3,975 ii) Working Capital 6,55,425

(For three months)
Total 30,475
Total 18,39,425
ii) Raw Materials including Packaging
Requirements MACHINERY UTILISATION

Sl. Parti- Indige- Qty. Rate Total The bottleneck operation in the
No. culars nous/ (In Rs.) manufacturing process is extrusion. The
Impo- unit will utilize 75% of the installed
rted
capacity.
i) Maida Indigenous 13 MT 8000 1,04,000
ii) Starch -do- “2 MT 9000 18,000 FINANCIAL ANALYSIS
iii) Chemicals, -do- L.S. – 6,000
salt, etc. 1. Cost of Production (per year) Amount
(In Rs.)
iv) Packaging -do- L.S. – 30,000
Material 1. Total recurring cost per year 26,21,700

Total 1,58,000 2. Depreciation on building @ 5% 33,750

3. Depreciation on M/C @ 10% 35,200
iii) Utilities Amount (In Rs.)
4. Depreciation on office equipment 4,400
i) Power 5,000
@ 20%
ii) Fuel 1,500 5. Interest on total capital 2,57,520
iii) Water 500 investment @ 14%
Total 7,000 Total 29,52,570
98 NOODLES

2.Turn Over (per year) Fixed Cost Amount

(In Rs.)
Item Qty. Rate Amount
(In Rs.) (In Rs.) (f) 40% of salary and wages 1,46,280
Fresh Noodles in 7.50 5.25 39,37,500 (g) 40% of other contingent expenses 1,10,400
200 gms. Packets lakh pkts
Total 6,05,550
3.Net Profit (per year) B.E.P.
= Sales – Cost of production = FC × 100
FC + P
= 39,37,500 – 29,52,570
= 6,05,550 × 100
= 9,84,930 6,05,550 + 9,84,930
= 38.07%
4. Net Profit Ratio
= Net profit per year × 100 Addresses of Machinery and
Turn Over per year Equipment Suppliers
= 9,84,830 × 100 1. M/s. Mona Machinery Mfg. Co.
39,37,500
Chandralok, 111 SD Road,
= 25.01%
Secunderabad.
5. Rate of Return 2. M/s. Khan Engg. Works
= Net profit per year × 100 5-5-274 Namally,
Total investment Near Gandhi Bhavan,
= 9,84,930 × 100
Patel Nagar,
18,39,425 Hyderabad.
= 53.5% 3. M/s. Shanti Turning Works
4-1-590/12, Troop Bazar,
6.Break-even Point Hyderabad-500001.
Fixed Cost Amount 4. M/s. Mahalaxmi Engg. Works
(In Rs.) Craftman, Gylid, Mallepally,
(a) Depreciation on Building @ 5% 33,750 Hyderabad.
(b) Depreciation on Machinery 35,200
5. M/s. Debdoot India
67-B, Biddan St.,
(c) Depreciation on Office Equipments 4,400 Kolkata - 700006.
(d) Interest on Total Investment 2,57,520
Raw Material Suppliers
(e) Insurance 18,000
Local Market.