Baydpr

DETAILED PROJECT REPORT
BAY LEAF ESSENTIAL OIL UNIT
UNDER PMFME SCHEME
National Institute of Food Technology Entrepreneurship and Management
Ministry of Food Processing Industries
Plot No.97, Sector-56, HSIIDC, Industrial Estate, Kundli, Sonipat, Haryana-131028
Website: http://www.niftem.ac.in
Email: [email protected]
Call: 0130-2281089

PM FME‐ Detailed Project Report of Bay Leaf Essential Oil Unit

TABLE OF CONTENTS
S No. Topic Page

Number
1. Project Summary 3
2. About the Product 4-6
3. Process Flow Chart 6-8
4. Economics of the Project 9-26
4.1. Basis & Presumptions 9
4.2. Capacity, Utilisation, Production & Output 10-11
4.3. Premises/Infrastructure 11
4.4. Machinery & Equipment’s 12-14
4.5. Misc. Fixed Assets 14
4.6. Total Cost of Project 15
4.7. Means of Finance 15
4.8 Term Loan 15
4.9. Term Loan repayment & interest schedule 16-19
4.10. Working Capital Calculations 19
4.11. Salaries/Wages 20
4.12. Power Requirement 21
4.13. Depreciation Calculation 21
4.14. Repairs & Maintenance 22
4.15. Projections of Profitability Analysis 22
4.16. Break Even Point Analysis 23
4.17. Projected Balance Sheet 24
4.18. Cash- Flow Statement 25
4.19. Debt-Service Coverage Ratio 26
2

1. PROJECT SUMMARY
1. Name of the proposed project : Bay Leaf Essential Oil Unit

2. Nature of proposed project : Proprietorship/Company/Partnership
3. Proposed project capacity : 16200 Ltr. /annum (30,35,40,45&50% capacity
utilization in 1st to 5th Year respectively)
4. Raw material : Bay Leaves

5. Major product outputs : Bay Leaf Essential Oil
6. Total project cost : Rs. 26.13 Lakh
 Land development, building & Civil : Nil
Construction
 Machinery and equipment’s : Rs. 15.20 Lakh
 Miscellaneous Fixed Assets : Rs. 2.50 Lakh
 Working capital : Rs. 8.43 Lakh
7. Means of Finance
 Subsidy (max 10lakhs) : Rs. 6.20 Lakh
 Promoter’s contribution (min10%) : Rs. 2.60 Lakh
 Term loan : Rs. 9.74 Lakh

 Working Capital Requirement : Rs. 7.59 Lakh
8. Profit after Depreciation, Interest & Tax
 1styear : Rs. 1.40 Lakh

 2ndyear : Rs. 4.43 Lakh
 3rd year : Rs. 7.89 Lakh
 4th year : Rs. 10.91 Lakh
 5th year : Rs. 14.06 Lakh
9. Average DSCR : 4.04
10. Term loan repayment : 5 Years with 6 months grace period
3
2. ABOUT THE PRODUCT
2.1. PRODUCT INTRODUCTION:
Bay leaf (Laurus nobilis) belongs to laurel family (Lauraceae) is an evergreen perennial shrub.
The genus has 2400 to 2500 species and native to Tropics of eastern Africa, southern
Mediterranean region, south and America, Asia minor, south and America and the Balkans. Two
laurel species are found: Laurus azorica and L. nobilis. L. nobilis is typically known as bay leaf
or sweet bay. It is known as waraq ghaar in Arabic, it is known as lorbeer in German, Tejpatta in
India, dafni in Greek. Laurus nobilis is a small tree having oblong leaf. The plant grows to the
height of 20 – 30 feet. The fruit is 10 -15mm, black and ovoid when ripe. The bark may be olive
green or reddish blue. The leaves are plucked and dried for use in flavouring for various of
dishes. Bark is also used for medicinal tea.
It has a sharp and bitter taste. The fragrance and aroma are due to the presence of essential oil in
leaves. It has tannins, citric acid, eugenol, flavonoids, carbohydrate, alkaloids, steroids,
triterpenoids and essential oil. Each of this chemical compound varies depending on the type of
species. The essential oil of bay leaf varies from 0.3% to 3%. Bay leaves has traces of fat hence
low in caloric value. It is main source of vitamin A and minerals. Bay leaf is also good source of
fibre.
Bay leaves is full of antioxidants, minerals and fibres. It is used for stomach ache, clearing up of
mucus in the lungs, cold and sore throat, to treat headaches, gastrointestinal problem and
analgesic effect. It has antidiarrheal, antidiabetic and anti-inflammatory properties, boosts
immune system.
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2.2. MARKET POTENTIAL:
The increase in awareness of healthy diet has increased consumption of natural ingredients. The
rapidly rising urbanization and changing lifestyle had changed the food preference towards
healthy choices owing to the medicinal properties of herbs and spices. Bay leaf owing to its
medicinal properties such as antioxidant properties is gaining attention among health-conscious
consumers. The anti-inflammatory property of the bay leaf reduces the chances of arthritis and
also the consumption of bay leaf improves insulin function which the reason it is beneficial for
diabetics. The increasing use of bay leaf by nutraceutical is also driving the global bay leaf
market. Consumption of bay leaf extracts as health supplement is increasing the demand for bay
leaf in all region by health-conscious consumers.
Increased use of bay leaf in sauces, pickles, seasoning, dressing gives ample opportunity to bay
leaf producers to grow in market. The bay leaf and its powder are gaining market due to its
application in French cuisine and Indian cuisine. It is also used as flavoring in liquors and
vinegars. The bay leaf powder is also used in packaged food industry and exotic cuisines.
Rising demand for organic products and environmentally friendly ingredients uses in cosmetic
and personal care boosted the market of essential oil. The essential oil of bay leaf is increasingly
used in various cosmetic products such as serums, face mask, shampoo, hair oils, soaps,
moisturizers owing to its antioxidant properties. It has essential oil content ranging from 1.5 –
2.5% by weight. It can treat various skin problem hence increasingly being used in home
remedies as well.
Essential oil of spices can successfully replace powdered or whole spice in food preparation and
other application. As essential oil is liquid in state, they are easier to handle than powdered
spices. Essential oil has very low growth of microbes and other contaminating micro-organisms
as compared to whole or powdered spices, therefore gives longer shelf life to product.
5

2.3. RAW MATERIAL DESCRIPTION:
The only raw material required for bay leaf essential oil manufacturing is bay leaves.
3. PROCESS FLOW CHART
Harvesting
The yield per tree is dependent on the age and size of tree. The collection from small trees ranges
from 30 – 40kg/tree/harvest and for bigger tree it ranges from 55- 65 kg/tree/harvest. Cleaning
and wedding are the main activities involved in cultivation of bay leaf. Leaves are harvested
during November to February. Harvesting is done once every two years.
Sorting ang grading
The bay leaves are received at the production facility where they are sorted and graded
depending on the type of quality. The grading is done on the basis of absence/ presence of
unwanted objects in the bundle. Two grade of bay leaves are available as follow
S.NO GRADE CHARACTERISTICS

1 Grade 1 Leaves with twigs
2 Grade 2 Leaves without twigs
Drying
Drying of bay leaves in the sun or spread in the clean mats. The leaves should be turned
frequently to ensure even drying. Better drying leads to the development of deeper flavor. The
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final moisture content of dried leaves should be 8-10%. During rainy season leaves can be dried
using mechanical tray dryer at 60°C for 1 hour.
Winnowing
The dried leaves are winnowed using winnowing basket to remove dust and other foreign matter.
Air current can also be used for removal of dirt and dust. Majority of bay leaf are packed in
bundles and transported with no value addition at local level.
Bay leaf oil extraction
Steam distillation is most widely used method for extraction of volatile oil from spices and herbs.
It is a unit operation in which live steam is passed through a well packed bed of leaves. The
resultant vapors contain volatile essential oil and steam are condensed and condensate forming
two immiscible oil are separated into essential oil and water in a separator. The latter is called
aromatic water of leaves and is discarded if has no commercial value.
Packaging of essential oils
Unsuitable packaging material can cause alteration in the active components of essential oil. The
essential oil depending on the quantity can be packed in aluminium bottle or amber glass bottle.
7

Harvesting
Sorting and
grading
Packaging of bay
leaves
Drying
Winnowing
Bay leaf oil

extraction
Packaging
Flow chart of bay leaves essential oil manufacturing
8

4. ECONOMICS OF THE PROJECT
4.1. BASIS & PRESUMPTIONS
1. Production Capacity of Bay Leaf Essential Oil is 60 ltr. per day. First year, Capacity has
been taken @ 30%.
2. Working shift of 8 hours per day has been considered.
3. Raw Material stock is for 10 days and Finished goods Closing Stock has been taken for 10
days.
4. Credit period to Sundry Debtors has been given for 15 days.
5. Credit period by the Sundry Creditors has been provided for 10 days.
6. Depreciation and Income tax has been taken as per the Income tax Act, 1961.
7. Interest on working Capital Loan and Term loan has been taken at 11%.
8. Salary and wages rates are taken as per the Current Market Scenario.
9. Power Consumption has been taken at 20 KW.
10. Increase in sales and raw material costing has been taken @ 5% on a yearly basis.
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4.2. CAPACITY, UTILIZATION, PRODUCTION & OUTPUT
COMPUTATION OF PRODUCTION OF BAY LEAF ESSENTIAL OIL
Items to be Manufactured
Bay leaf essential oil
Total working Hours 8

Plant capacity Per Day 60 Ltr.
Working days in a month 25 Days
Working days per annum 300
Wastage Considered 10%
Raw material requirement 18000 Ltr.
Final Output per annum after wastage 16200 Ltr.
Final Product to be packed in 100 ml bottle
Number of Bottles per annum 162000 100 ml bottle

Production of Bay leaf essential oil

Production Capacity LTR.
1st year 30% 48,600
2nd year 35% 56,700
3rd year 40% 64,800
4th year 45% 72,900
5th year 50% 81,000

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Raw Material Cost

Year Capacity Rate Amount
Utilisation (per bottle.) (Rs. in lacs)
1st year 30% 140.00 68.04
2nd year 35% 147.00 83.35
3rd year 40% 154.00 99.79
4th year 45% 162.00 118.10
5th year 50% 170.00 137.70

COMPUTATION OF SALE
Particulars 1st year 2nd year 3rd year 4th year 5th year
Op Stock - 1,620 1,890 2,160 2,430
Production 48,600 56,700 64,800 72,900 81,000
Less : Closing Stock 1,620 1,890 2,160 2,430 2,700
Net Sale 46,980 56,430 64,530 72,630 80,730
Sale price per bottle 225.00 236.00 248.00 260.00 273.00
Sales (in Lacs) 105.71 133.17 160.03 188.84 220.39

4.3. PREMISES/INFRASTRUCTURE
The approximate total area required for complete factory setup is 2000-2500 Sq. ft. for
smooth production including storage area. It is expected that the premises will be on rental.
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4.4. MACHINERY & EQUIPMENTS
Machine Name Description Machine Image.
Vibrating separator A vibrating separator is a multifunctional

machinery used for pre-treatment and
cleaning. Adopting high frequency and small
vibrating amplitude motor, it can efficiently
separate and clean impurities of different
sizes. The outlet is equipped with a
circulation air separator to remove dust and
light impurities.
Steam distillation Distillation unit is made up of stainless steel.

unit It is specially designed so that the steam
distillation as well as solvent extraction can
be done in the same unit at atmosphere.
There are two layers inside layer for heating
outside layer for insulation. It is equipped
with filter screen for effective filtering of
impurities. The condenser is highly efficient
and built in the system.
Packaging machine Oil filling machine consists of filling nozzle,

when filling sealing ring is opened and when
filling is completed the sealing is blocked
up. Consist of cap pressing machine, bottle
caps automatically go into bottle cap slot by
adopting cap pulling device. The machine
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consists of conveyor to convey filled and

empty bottles. The machine can be used for
glass bottle as well as plastic bottle.
Tray dryer Industrial tray drying machine / Hot air-

drying machine is made with stainless steel
and equipped with plastic, stainless steel and
customized drying racks. The drying method
can be co current or counter current air flow.
The temperature is controlled and speed of
the conveyor can be adjusted according to
the drying time required. The heating source
is electricity to generate hot air.
Material handling These Equipment’s are used for material

and other handling. Other equipment’s like water
Equipment’s pumps, silos, bucket elevator, belt
conveyors, unloading bin, etc are also used.

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Machine Unit Rate Price
Vibrating separator 1 175000 175000
Steam distillation unit 1 450000 450000
Packaging machine 1 300000 300000
Tray dryer 1 245000 245000
Material handling and other equipment’s (Trolley, - 350000 350000

weighing machine, storage bins, etc.)
Note: Total Machinery cost shall be Rs 15.20 lakh including equipment’s but excluding GST
and Transportation Cost.
4.5. MISCELLANEOUS FIXED ASSETS

 Water Supply Arrangements
 Furniture & Fixtures
 Computers & Printers
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4.6. TOTAL COST OF PROJECT
COST OF PROJECT
(in Lacs)
PARTICULARS Amount
Land & Building Owned/Rented

Plant & Machinery 15.20
Miscellaneous Assets 2.50
Working capital 8.43
Total 26.13

4.7. MEANS OF FINANCE

MEANS OF FINANCE
PARTICULARS AMOUNT
Own Contribution (min 10%) 2.60
Subsidy @35%(Max. Rs 10 Lac) 6.20
Term Loan @ 55% 9.74
Working Capital (Bank Finance) 7.59
Total 26.13

4.8. TERM LOAN: Term loan of Rs. 9.74 Lakh is required for project cost of
Rs. 26.13 Lakh
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4.9. TERM LOAN REPAYMENT& INTEREST SCHEDULE
REPAYMENT SCHEDULE OF TERM LOAN

Interest 11.00%
Closing
Year Particulars Amount Addition Total Interest Repayment Balance
1st Opening Balance
1st month - 9.74 9.74 - - 9.74
2nd month 9.74 - 9.74 0.09 - 9.74
3rd month 9.74 - 9.74 0.09 - 9.74
4th month 9.74 - 9.74 0.09 9.74
5th month 9.74 - 9.74 0.09 9.74
6th month 9.74 - 9.74 0.09 9.74
7th month 9.74 - 9.74 0.09 0.18 9.55
8th month 9.55 - 9.55 0.09 0.18 9.37
9th month 9.37 - 9.37 0.09 0.18 9.19
10th month 9.19 - 9.19 0.08 0.18 9.01
11th month 9.01 - 9.01 0.08 0.18 8.83
12th month 8.83 - 8.83 0.08 0.18 8.65

0.96 1.08
2nd Opening Balance
1st month 8.65 - 8.65 0.08 0.18 8.47
2nd month 8.47 - 8.47 0.08 0.18 8.29
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3rd month 8.29 - 8.29 0.08 0.18 8.11
4th month 8.11 - 8.11 0.07 0.18 7.93
5th month 7.93 - 7.93 0.07 0.18 7.75
6th month 7.75 - 7.75 0.07 0.18 7.57
7th month 7.57 - 7.57 0.07 0.18 7.39
8th month 7.39 - 7.39 0.07 0.18 7.21
9th month 7.21 - 7.21 0.07 0.18 7.03
10th month 7.03 - 7.03 0.06 0.18 6.85
11th month 6.85 - 6.85 0.06 0.18 6.67
12th month 6.67 - 6.67 0.06 0.18 6.49

0.84 2.16
3rd Opening Balance
1st month 6.49 - 6.49 0.06 0.18 6.31
2nd month 6.31 - 6.31 0.06 0.18 6.13
3rd month 6.13 - 6.13 0.06 0.18 5.95
4th month 5.95 - 5.95 0.05 0.18 5.77
5th month 5.77 - 5.77 0.05 0.18 5.59
6th month 5.59 - 5.59 0.05 0.18 5.41
7th month 5.41 - 5.41 0.05 0.18 5.23
8th month 5.23 - 5.23 0.05 0.18 5.05
9th month 5.05 - 5.05 0.05 0.18 4.87
10th month 4.87 - 4.87 0.04 0.18 4.69
11th month 4.69 - 4.69 0.04 0.18 4.51
12th month 4.51 - 4.51 0.04 0.18 4.33
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0.60 2.16
4th Opening Balance
1st month 4.33 - 4.33 0.04 0.18 4.15
2nd month 4.15 - 4.15 0.04 0.18 3.97
3rd month 3.97 - 3.97 0.04 0.18 3.79
4th month 3.79 - 3.79 0.03 0.18 3.61
5th month 3.61 - 3.61 0.03 0.18 3.43
6th month 3.43 - 3.43 0.03 0.18 3.25
7th month 3.25 - 3.25 0.03 0.18 3.06
8th month 3.06 - 3.06 0.03 0.18 2.88
9th month 2.88 - 2.88 0.03 0.18 2.70
10th month 2.70 - 2.70 0.02 0.18 2.52
11th month 2.52 - 2.52 0.02 0.18 2.34
12th month 2.34 - 2.34 0.02 0.18 2.16

0.37 2.16
5th Opening Balance
1st month 2.16 - 2.16 0.02 0.18 1.98
2nd month 1.98 - 1.98 0.02 0.18 1.80
3rd month 1.80 - 1.80 0.02 0.18 1.62
4th month 1.62 - 1.62 0.01 0.18 1.44
5th month 1.44 - 1.44 0.01 0.18 1.26
6th month 1.26 - 1.26 0.01 0.18 1.08
7th month 1.08 - 1.08 0.01 0.18 0.90
8th month 0.90 - 0.90 0.01 0.18 0.72

9th month 0.72 - 0.01 0.18 0.54
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0.72
10th month 0.54 - 0.54 0.00 0.18 0.36
11th month 0.36 - 0.36 0.00 0.18 0.18
12th month 0.18 - 0.18 0.00 0.18 -

0.13 2.16
DOOR TO DOOR 60 MONTHS
MORATORIUM
PERIOD 6 MONTHS
REPAYMENT PERIOD 54 MONTHS
4.10. WORKING CAPITAL CALCULATIONS

COMPUTATION OF CLOSING STOCK & WORKING CAPITAL (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Finished Goods
3.14 3.80 4.49 5.25 6.06
Raw Material
2.27 2.78 3.33 3.94 4.59
Closing Stock 5.41 6.57 7.81 9.19 10.65
COMPUTATION OF WORKING CAPITAL REQUIREMENT

TRADITIONAL METHOD (in Lacs)
Particulars Amount Own Margin Bank Finance
Finished Goods & Raw Material 5.41
Less : Creditors 2.27
Paid stock 3.14 10% 0.31 90% 2.83
Sundry Debtors 5.29 10% 0.53 90% 4.76
8.43 0.84 7.59
MPBF 7.59
WORKING CAPITAL LIMIT DEMAND ( from Bank) 7.59
Working Capital Margin 0.84
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4.11. SALARY & WAGES

BREAK UP OF LABOUR CHARGES
Particulars Wages No of Total

Rs. per Month Employees Salary
Plant Operator 15,000 2 30,000
Supervisor 18,000 1 18,000
Skilled (in thousand rupees) 12,000 3 36,000
Unskilled (in thousand rupees) 8,500 4 34,000
Total salary per month 1,18,000
Total annual labour charges (in lacs) 14.16

BREAK UP OF STAFF SALARY CHARGES
Particulars Salary No of Total

Rs. per Month Employees Salary
Administrative Staff 7,000 2 14,000
Manager 20,000 1 20,000
Accountant 18,000 1 18,000
Total salary per month 52,000
Total annual Staff charges (in lacs) 6.24

20

4.12 POWER REQUIREMENT
Utility Charges (per month)

Particulars value Description
Power connection required 20 KWH
consumption per day 160 units
Consumption per month 4,000 units
Rate per Unit 10 Rs.
power Bill per month 40,000 Rs.
4.13. DEPRECIATION CALCULATION
COMPUTATION OF DEPRECIATION (in Lacs)

Description Plant & Machinery Miss. Assets TOTAL
Rate of Depreciation 15.00% 10.00%
Opening Balance - - -
Addition 15.20 2.50 17.70
Total 15.20 2.50 17.70
Less : Depreciation 2.28 0.25 2.53
WDV at end of Year 12.92 2.25 15.17
Additions During The Year - - -
Total 12.92 2.25 15.17
Total 10.98 2.03 13.01
Total 9.33 1.82 11.16
Total 7.93 1.64 9.57
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4.14. REPAIR & MAINTENANCE: Repair & Maintenance is 2.5% of Gross Sale.
4.15. PROJECTIONS OF PROFITABILITY ANALYSIS:
PROJECTED PROFITABILITY STATEMENT (in Lacs)
Capacity Utilisation % 30% 35% 40% 45% 50%
SALES
Gross Sale
Bay leaf essential oil 105.71 133.17 160.03 188.84 220.39
Total 105.71 133.17 160.03 188.84 220.39

COST OF SALES
Raw Material Consumed 68.04 83.35 99.79 118.10 137.70
Electricity Expenses 4.80 5.52 6.35 7.30 8.03
Depreciation 2.53 2.16 1.85 1.58 1.35
Wages & labour 14.16 16.85 19.38 22.09 24.74
Repair & maintenance 2.64 3.33 4.00 4.72 5.51
Packaging 2.11 2.66 3.20 3.78 4.41
Cost of Production 94.29 113.88 134.57 157.57 181.74
Add: Opening Stock /WIP - 3.14 3.80 4.49 5.25
Less: Closing Stock /WIP 3.14 3.80 4.49 5.25 6.06
Cost of Sales 91.14 113.22 133.88 156.80 180.94
GROSS PROFIT 14.56 19.95 26.16 32.04 39.46
13.78% 14.98% 16.34% 16.97% 17.90%
Salary to Staff 6.24 7.49 8.75 10.07 11.27
Interest on Term Loan 0.96 0.84 0.60 0.37 0.13
Interest on working Capital 0.83 0.83 0.83 0.83 0.83
Rent 3.60 3.96 4.36 4.79 5.27
selling & adm exp 1.53 2.40 2.80 3.02 4.41
TOTAL 13.16 15.52 17.35 19.08 21.92
NET PROFIT 1.40 4.43 8.81 12.96 17.54
1.32% 3.33% 5.50% 6.86% 7.96%
Taxation - - 0.92 2.05 3.48
PROFIT (After Tax) 1.40 4.43 7.89 10.91 14.06
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4.16. BREAK EVEN POINT ANALYSIS

BREAK EVEN POINT ANALYSIS

Year I II III IV V
Net Sales & Other Income 105.71 133.17 160.03 188.84 220.39
Less : Op. WIP Goods - 3.14 3.80 4.49 5.25
Add : Cl. WIP Goods 3.14 3.80 4.49 5.25 6.06
Total Sales 108.85 133.83 160.72 189.60 221.20
Variable & Semi Variable Exp.

Raw Material Consumed 68.04 83.35 99.79 118.10 137.70
Electricity Exp/Coal Consumption at 85% 4.08 4.69 5.40 6.21 6.83
Wages & Salary at 60% 12.24 14.60 16.88 19.29 21.61
Selling & adminstrative Expenses 80% 1.23 1.92 2.24 2.42 3.53
Interest on working Capital 0.834386 0.834386 0.834386 0.834386 0.834386
Repair & maintenance 2.64 3.33 4.00 4.72 5.51
Packaging 2.11 2.66 3.20 3.78 4.41
Total Variable & Semi Variable Exp 91.18 111.39 132.34 155.35 180.41
Contribution 17.67 22.44 28.38 34.26 40.79
Fixed & Semi Fixed Expenses

Electricity Exp/Coal Consumption at 15% 0.72 0.83 0.95 1.10 1.20
Wages & Salary at 40% 8.16 9.74 11.25 12.86 14.41
Depreciation 2.53 2.16 1.85 1.58 1.35
Selling & adminstrative Expenses 20% 0.31 0.48 0.56 0.60 0.88
Rent 3.60 3.96 4.36 4.79 5.27
Total Fixed Expenses 16.27 18.01 19.57 21.30 23.25
Capacity Utilization 30% 35% 40% 45% 50%

OPERATING PROFIT 1.40 4.43 8.81 12.96 17.54
BREAK EVEN POINT 28% 28% 28% 28% 28%
BREAK EVEN SALES 100.24 107.41 110.85 117.90 126.07
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4.17. PROJECTED BALANCE SHEET

PROJECTED BALANCE SHEET (in Lacs)
Liabilities
Capital
opening balance 8.20 10.23 12.62 15.52
Add:- Own Capital 2.60
Add:- Retained Profit 1.40 4.43 7.89 10.91 14.06
Less:- Drawings 2.00 2.40 5.50 8.00 10.50
Subsidy/grant 6.20
Closing Balance 8.20 10.23 12.62 15.52 19.09
Term Loan 8.65 6.49 4.33 2.16 -
Working Capital Limit 7.59 7.59 7.59 7.59 7.59
Sundry Creditors 2.27 2.78 3.33 3.94 4.59
Provisions & Other Liab 0.40 0.50 0.60 0.72 0.86
TOTAL : 27.10 27.58 28.45 29.93 32.13
Assets
Fixed Assets ( Gross) 17.70 17.70 17.70 17.70 17.70
Gross Dep. 2.53 4.69 6.54 8.13 9.48
Net Fixed Assets 15.17 13.01 11.16 9.57 8.22
Current Assets
Sundry Debtors 5.29 6.66 8.00 9.44 11.02
Stock in Hand 5.41 6.57 7.81 9.19 10.65
Cash and Bank 1.24 1.34 1.48 1.72 2.24
TOTAL : 27.10 27.58 28.45 29.93 32.13

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4.18. CASH FLOW STATEMENT

PROJECTED CASH FLOW STATEMENT (in Lacs)
SOURCES OF FUND
Own Margin 2.60
Net Profit 1.40 4.43 8.81 12.96 17.54
Depriciation & Exp. W/off 2.53 2.16 1.85 1.58 1.35
Increase in Cash Credit 7.59 - - - -
Increase In Term Loan 9.74 - - - -
Increase in Creditors 2.27 0.51 0.55 0.61 0.65
Increase in Provisions & Oth lib 0.40 0.10 0.10 0.12 0.14
Sunsidy/grant 6.20
TOTAL : 32.71 7.20 11.31 15.27 19.69
APPLICATION OF FUND
Increase in Fixed Assets 17.70
Increase in Stock 5.41 1.16 1.24 1.38 1.46
Increase in Debtors 5.29 1.37 1.34 1.44 1.58
Repayment of Term Loan 1.08 2.16 2.16 2.16 2.16
Drawings 2.00 2.40 5.50 8.00 10.50

Taxation - - 0.92 2.05 3.48
TOTAL : 31.48 7.10 11.16 15.03 19.18
Opening Cash & Bank Balance - 1.24 1.34 1.48 1.72

Add : Surplus 1.24 0.10 0.14 0.24 0.51
Closing Cash & Bank Balance 1.24 1.34 1.48 1.72 2.24
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4.19. DEBT SERVICE COVERAGE RATIO
CALCULATION OF D.S.C.R
CASH ACCRUALS 3.93 6.59 9.74 12.49 15.42

Total 4.88 7.44 10.34 12.86 15.55
REPAYMENT
Instalment of Term Loan 1.08 2.16 2.16 2.16 2.16
Total 2.04 3.01 2.77 2.53 2.29
DEBT SERVICE COVERAGE RATIO 2.40 2.47 3.74 5.08 6.78

AVERAGE D.S.C.R. 4.04
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DETAILED PROJECT REPORT

BAY LEAF ESSENTIAL OIL UNIT

UNDER PMFME SCHEME

National Institute of Food Technology Entrepreneurship and Management

Ministry of Food Processing Industries

Plot No.97, Sector-56, HSIIDC, Industrial Estate, Kundli, Sonipat, Haryana-131028

S No. Topic Page

1. Name of the proposed project : Bay Leaf Essential Oil Unit

4. Raw material : Bay Leaves

 Promoter’s contribution (min10%) : Rs. 2.60 Lakh

 Term loan : Rs. 9.74 Lakh

 1styear : Rs. 1.40 Lakh

2. ABOUT THE PRODUCT

2.1. PRODUCT INTRODUCTION:

2.2. MARKET POTENTIAL:

2.3. RAW MATERIAL DESCRIPTION:

3. PROCESS FLOW CHART

Sorting ang grading

S.NO GRADE CHARACTERISTICS

Bay leaf oil extraction

Packaging of essential oils

Bay leaf oil

Flow chart of bay leaves essential oil manufacturing

4. ECONOMICS OF THE PROJECT

4.1. BASIS & PRESUMPTIONS

2. Working shift of 8 hours per day has been considered.

4. Credit period to Sundry Debtors has been given for 15 days.

9. Power Consumption has been taken at 20 KW.

4.2. CAPACITY, UTILIZATION, PRODUCTION & OUTPUT

COMPUTATION OF PRODUCTION OF BAY LEAF ESSENTIAL OIL

Total working Hours 8

Production of Bay leaf essential oil

Raw Material Cost

4.4. MACHINERY & EQUIPMENTS

Machine Name Description Machine Image.

Vibrating separator A vibrating separator is a multifunctional

Steam distillation Distillation unit is made up of stainless steel.

Packaging machine Oil filling machine consists of filling nozzle,

consists of conveyor to convey filled and

Tray dryer Industrial tray drying machine / Hot air-

Material handling These Equipment’s are used for material

Machine Unit Rate Price

Vibrating separator 1 175000 175000

Steam distillation unit 1 450000 450000

Packaging machine 1 300000 300000

Tray dryer 1 245000 245000

Material handling and other equipment’s (Trolley, - 350000 350000

4.5. MISCELLANEOUS FIXED ASSETS

4.6. TOTAL COST OF PROJECT

Land & Building Owned/Rented

4.7. MEANS OF FINANCE

Total 26.13

4.9. TERM LOAN REPAYMENT& INTEREST SCHEDULE

REPAYMENT SCHEDULE OF TERM LOAN

1st month - 9.74 9.74 - - 9.74

2nd month 9.74 - 9.74 0.09 - 9.74

3rd month 9.74 - 9.74 0.09 - 9.74

4th month 9.74 - 9.74 0.09 9.74