INDIAN SPICES

Adding Taste To Food

Agenda

Introduction Mission & Vision 4 Ps Product Life Cycle Industry Analysis Competitors Prospects Porters 5 Forces Location Technical Analysis Means of Finance Production Forecast Approvals & Certification Subsidies Risk Coverage

Introduction

India ranks 2nd as far as production of onion is concerned behind China. Annual production is 55-60 lac tonnes Ranks 3rd in the production of garlic.

Highest consumer of processed fruits and vegetables is China.

Spices production of India 3.1mn tonnes

Mission

Our mission is to practice Quality in totality of features and characteristics of a Product & service that bear on its ability to satisfy stated or implied needs.

Vision

We aim to be an innovative world-class leader in food products & service. We will differentiate ourselves not on size but for our commitment to quality, to customer service, and our ability to respond positively to change.

Product Portfolio
Dehydrated onion flakes Dehydrated onion granules

Dehydrated onion chopped Dehydrated onion powder

Dehydrated onion minced

Product Portfolio(contd)
Dehydrated Garlic flakes Dehydrated Garlic Minced

Dehydrated Garlic granules

Dehydrated Garlic Powder

All products will be available as per customized cut size & specification In std bacteria/low bacteria/extra low bacteria with TPC 500,000/g max.,300000/g max., & 100,000/g max. respectively It will be our Endeavour to develop products as per buyers request Packing Mode : 25 kgs Cartoon 50 LBS Cartoon

Consumption Pattern

Flakes 12%

Chopped 18%

Powder 40%

Minced 30%

CONSUMPTION PATTERN

Application
Product Use
Used in varied food preparations Wherever onion flavor & taste is required & appearance & texture of onion is desired.
Dry soups mixes, sauces specialty / ethnic food preparations, canned, dry or frozen vegetable mixes, dry casserole mixes, stuffing mixes, food service & fast foods. Soups, sauces, canned / dry / frozen food, salad dressings, meat products, other food products wherever onion flavor & taste desired'. Ideal for repacking for retail stores. Vegetable & meat preparations, gravies, sauces, seasonings, cheeses, crackers etc. Ideal for retail packs suitable for metering devices. Suitable for varied food preparations, Wherever onion flavor & taste is desired.

Dehydrated onion flakes

Dehydrated onion chopped

Dehydrated onion minced

Dehydrated onion granules

Dehydrated onion powder

Price

Onion

Garlic

Powder $1900/ton Minced $2100/ton Chopped $2300/ton

Flakes $3500/ton Chopped $3300/ton Minced $3200/ton

Slices $2500/ton

Powder $2900/ton

Place & Promotion

Exhibitions like FI-food ingredients held all over the world, around the year FI ASIA CHINA FI EUROPE LONDON FI SOUTH AMERICA BRASIL FI INDIA MUMBAI ANUGA FOOD is considered the biggest fair, held in Germany. Marketing done through listing of websites on various search engines.

Product Life Cycle

In India this product is at growth stage because ever increasing consumption of packaged foods.
Whereas, abroad it is at maturity stage with demand increasing year on.

Industry Analysis

Major competitors In India 25 such plants but only some of them export in large quantity like : Jain Irrigation - Jalgaon (Maharashtra) Pardes Dehydration Gondal (Saurashtra) Chhatariya Dehydration Mahuva (Saurashtra)

Industry Analysis (contd)

Competition from abroad.

Main competitors are China & Egypt for Indian exporters.

Competitive advantage for Egypt- Near to Europe

Competitive advantage for China Low quality raw material but has a cost advantage as usual.

Major Prospects
Abroad

EUROPEAN TRADE NETWORK

NESTLE SOUTH AMERICA IDC USA MC CHORMICK USA MR. DE FRANSISCO USA ENCORE CANADA ASBO CHILLE VAN DE VARIES USA

Major Prospects
Domestic Spice Blend Manufacturers MDH, Everest, Ramdev

Chips Manufacturers Frito Lays, Haldirams, Bingo Soups Manufacturers Nestle, Unilever(Knor) Ketchup Manufacturer Kissan

Indian Army on contractual basis

PORTERS FIVE FORCES

Inter Firm Rivalry : Low Few Producers. Less competition
Bargaining Power of Supplier : - High Protects the farmers by deciding SMP.

Bargaining Power of Buyer : Low As no substitutes available.

Substitutes:- No

Barriers to Entry: Low Encouragement of small scale units by Govt.

Location

Saurashtra, outskirts of Rajkot

Advantages Easy procurement of good quality raw materials from APMC and nearby villages.

Low logistics cost for procurement as well as despatch.

Cheap labour from vicinity. Water canal for removal of waste water. APEDA in co-ordination with DGFT going to establish AEZ by 2009.

Technical Analysis

Manufacturing Process Capital Inputs and Details

Organization Hierarchy
Manpower Planning

Implementation Schedule

Manufacturing Process
FRESH RAW MATERIALS WASHING AND CUTTING DRYING BY HOT AIR IN CONTINUOUS DRIERS COOLING ROOM TO SORTEX SECTION CHOPPER FLAKES MINCER KIBBLED

METAL DETECTOR AUTOMATIC COLOR SORTING & CLEANING SYSTEM PULVERISER

PACKING, STORAGING & DESPATCH

Machinery

Machinery

Capital Inputs

Land requirement 4 acre x 5 lac/acre = Rs.20 lac Construction (Rs.400/ sq.ft) Process House- 80 x 80 sq.ft Cold Storage- 50 x 60 sq.ft Cooling area- 10 x 60 sq.ft Sorting & Cleaning- 50 x 30 sq.ft Packaging- 30 x 30 sq.ft Boiler area- 30 x 50 sq.ft Raw material storage- 60 x 30 sq.ft (Peeling area)

Total Cost of Construction and Land Rs.82.80 lac

Capital Inputs

Machinery & other necessities

Description Skin remover Washing tank Slicer 4 Stage Drier Grader Units 4 2 2 4 2 Price/unit (Rs.) Total (Rs.) 0.55 lac 0.50 lac 1.25 lac 16 lac 1.5 lac 2.20 lac 1.0 lac 2.50 lac 64 lac 3.0 lac

Sortex & Cleaning Pulveriser

Packaging Material Cold storage(50 ton AC) Boiler

1 2
1 (2nd Hand) 2 (2nd Hand)

1.5 crore 4.0 lac

1.0 lac 4.0 lac 15.0 lac

1.5 crore 8.0 lac

1.0 lac 4.0 lac 30 lac

Total Thus total cost = Rs.82.80 lac + 2.65 cr=3.48 crore

2.65 crore

Organization Structure
Director
(Purchase & Marketing)

Quality Control Supervisor

Production Supervisor

Hygiene Supervisor

Sanitation supervisor

Supervisor 1 Supervisor 2

Supervisor 3
Supervisor 4

Manpower Requirement
250 workers during peak season Rs.75/day

During off-season workers reduced to 150 Rs.75/day

3 shifts From 8:00 a.m. 4:00 p.m. From 4:00 p.m. 12:00 a.m. From 12:00 a.m. 8:00 a.m.

Implementation Schedule
Sr. No. 1. 2. 3.

Activity

Duration
3 months 3 months

Filling the application for registration of the company Buildings Construction Placing the orders for the machineries and equipments, materials required for fabricating the machineries as per our requirement. All the equipments and machineries will be received within 5 months after placing the order. Recruitment of the supervisors, and workers Installation work of the machinery, fabrication work for the required machineries, electricity supply distribution in the plant, and taking the water connection in the plant Ordering of the raw materials and receiving of the raw materials Commissioning work and testing of the machineries Recruitment of the managers

6 months

4. 5.

1 month

3 months

6. 7. 8. 9.

10 days 1 month 10 days

Filling the application for the Certifications .

Starting the full production

2 Month
----------

10.

Means of Finance

Bank Loan
Term Loan

Cash Credit
Packaging Credit Post Shipment Credit Hypothication

Means of Finance (cont)

Cash Credit Approx 1.5crore@12% p.a. Packaging Credit Approx 2crore@12% p.a.

Post Shipment Credit Approx 2.5crore@10.5% p.a.

Production Forecast

At 100% capacity utilization Processed Onion 292 tonnes/month Thus annual output 3500 tonnes/annum Processed Garlic - 210 tonnes/annum Thus annual output 2520 tonnes/annum

Country wise break up of Sales

India Netherlands 8% 6% Japan 6% Columbia 8% Brazil 19%

Sales

USA 29%

Philipines 11% Germany 13%

Net Exports = (approx) 92%

Approvals

SSI Technical & Managerial Consultancy services to mfg/exp is provided through n/w field offices. DGFT To give exp/imp license & DEPB license.

DIC For promotion, development & monitoring of industries in state.

CPCB Clearance for water, air and soil pollution control APEDA Promotes exports of agricultural and allied industries (Onion)

Approvals

Spices Board Registration of exporters of spices in INDIA (Garlic & Onion) Factory license Boiler Inspection Department

Certification

HACCP Warranty Hazard Analysis & Critical Control Point Certificate for Processing & Maintaining Food Quality

SGS Society for General Surveillance For various certificates of Quality, EHS
OU Orthodox Union When various chemicals are used for sterilization and other processes (Food Safety)

Incentives & Subsidies

Central Government gives 25% subsidy on products (MoFP). State Government gives subsidy through Guj Agro Export Co-op of 50% for the cost incurred for Quality certification like HACCP, ISO, etc. EPCG (Export Promotion Capital Goods) license where an exporter can import machine duty free provided has to export = total cost of machine x 7 in 7 years

Other Benefits

VKUY (Vishesh Krishi Upaj Yojana) by Central Government gives 3% refund on transportation. Under Advanced license can import duty free material of the same nature that we export.

Risk Coverage

Need to register with ECGC (Export Credit Guarantee Co-op). Premium paid on the good exported. If we dont receive payment or the importer receives good through improper channel then ECGC pays certain percentage of it.

Conclusion

With team of well qualified production personnel and well equipped plant with sophisticated production control we are committed to provide customers with wholesome, safe and hygienic products.

THANK YOU