Professional Documents
Culture Documents
TECHNOLOGIES
Technical
A PROJECT REPORT
ON
Email : Fakhruddin.H@al-ghurair.com
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13 / 14, Seva Sadan Building, CA Road, NAGPUR 440 001,
A PROJECT REPORT
ON
COFFEE
MANUFACTURING UNIT
S.No.
CONTENTS
Page No.
1.
INTRODUCTION
2.
QUALITY STANDARDS
3.
MARKET POTENTIAL
12
4.
13
5.
16
6.
PROJECT FACILITIES
29
7.
COST SUMMARY
& OPERATTING EXPENSES
38
8.
42
9.
45
-------
45
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1.0 INTRODUCTION
1.1 BACKGROUND :
Alghurair Foods, Dubai ( UAE ) is one of the highly reputed food chain group
of companies in the United Arab Emirates ( UAE), having its own manufacturing
and distribution network for domestic and export market. Along with other food
and FMCG products, it is now proposing to establish its own in house Coffee
making unit with a view to meet the growing demands of this region as well as
to cater to the export market.
For this project the group represented by CA Mr Fakhruddin Hardwarewala has
approached
SMB
Environmental
Projects
Pvt.
Ltd
Absolute
advantage for dispatching the finished products in packed and bulk packaging to
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2. QUALITY STANDARDS
2.1 GENERAL:
It is generally estimated that the quality of the finished product in coffee
depends:
- 40% on the field/plantation
- 40% on primary processing
- 20% on secondary/export processing
Unfortunately the majority of investment, especially in the years since
liberalization, has been made in the export processing. By that stage it is too
late to have a major positive impact on the quality. The need is to address the
issues of quality improvement both at plantation and primary processing level.
There is a significant value-addition to be gained from the wet processing of
coffee, in order to produce what is called washed or fully washed coffee. (See
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Screen
Nos
Beans
Arabica
Mild Coffee Between Clean, bold
Plantation
17 & 18 uniform size
AA
Arabica
Grade
Sieve
Standard
Description Remarks
---
90% by
weight
standing in
7 mm sieve
Superior
flavour,
Connoisseur's
strength and choice
aroma
90% by
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Plantation
PB
---
Plantation B 15
Round beans
Clean
garbled, No
flats (AB)
subject to a
tolerance of
2% by
weight
3% by
weight of
Peaberry
Triage
Small beans
Clean
garbled.
Does not
contain PB
subject to
tolerance of
2% by
weight. Can
contain 3%
by weight of
triage
Not less
than 75%
standing on
a sieve of 6
mm. Not
more than
Good Aroma -1.5%
passing
through a
5.5 mm
sieve
Includes light,
boat-shaped
and spotted
Between beans (less than
Plantation C
13 & 14 a quarter of
bean surface)
No black or
damaged beans
Arabica
15
Cherry
(Unwashed)
Arabica
Cherry AB
soft cup,
weight
good body
standing in
of fair
6 mm sieve
acidity
Superior
flavour,
Strength &
Aroma
--
75% by
weight.
Consists of
Standing on
triage and
a 5.5 mm
small whole
sieve, but
Good Aroma -beans of
100%
prescribed
weight.
sieve size
Standing on
5 mm sieve
Not less
Natural
than 90%
Aroma
by weight
standing on
6 mm sieve.
Not more
than 1.5%
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--
Arabica
Cherry PB
--
Arabica
Cherry C
Light, boat
shaped and
spotted beans
(less than 1/4 of
Between beam surface)
13 & 14 Does not
contain more
than 2%
blacks/brown
and/or bits
Round beans
Contains
3% by
weight of
triage
passing
through
5.50 mm
sieve
No flats
(AB)
subject to
tolerance of
2% by
weight.
Contains
3% by
weight of
triage
3% by
weight of
Peaberry
Triage
Natural
Aroma
--
Consists of
Triage and
small whole
beans of
prescribed
sieve size
75%
standing on
5.5 mm
Natural
sieve, 100%
Aroma
by weight
standing on
5 mm sieve
--
Arabica Cherry C Between 13 & 14: Light, boat shaped and spotted
beans (less than 1/4 of beam surface) does not contain more than 2%
blacks/brown and/or bits Consists of Triage and small whole beans of
prescribed sieve size 75% standing on 5.5 mm sieve, 100% by weight
standing on 5 mm sieve Natural Aroma
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The plant is expected to work on round the clock basis, 24 hours and 300 days
in a year. Rest of the period will be utilized for maintenance activities. Required
redundancy has been built in the plant design so that spare equipment are
available to ensure continuous and un-interrupted production even when some
of the equipment are taken off from the service for routine maintenance.
4.3 FINANCE:
The ratio of own : loan funds is taken as 1 : 4. The owners share of fixed and
working capital shall be arranged from the own internal resources. The balance
funding shall be arranged from mid term, six year loan bearing an interest @
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5.5%. Total overall investment including the borrowings should not exceed 4
million Euros equivalent of 18.6 million AED ( 1 AEd = 0.215 Euro)
4.4
The raw materials i.e Arabica variety of coarse quality coffee beans shall be
imported mostly from East African countries like Kenya up to the Dubai sea port
in containers. From the sea port, the raw materials shall be transported by road
to the production plant.
The power and water shall be provided by Dubai Electricity and Water Authority
( DEWA) by installing a captive substation. The DEWA also provides sufficient
backup in case of power failure and therefore, there is no need to provide any
power back up facilities. The cost of power at present is 30 fils / KW.
4.5 IMPLEMENTATION SCHEDULE :
1.
2.
3.
4.
Arrangement of Finance :
5.
Building construction
3 months
6.
Arrangement of Power
1 month
7.
4 month
8.
3 month
9.
1 month
10.
1 month
Trouble - shooting
1 month
1 month
2 months
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Phases
Phase I
Phase II
Total Time
3 months
Next 4 months
Supplies
Phase III Commissioning, Trail production, Recruitment of
Next 2 months
nurseries.
After sprouting, the seedlings are removed from the seed bed to be planted in
individual pots in carefully formulated soils. They will be watered frequently and
shaded from bright sunlight until they are healthy enough to be permanently
planted. Planting often takes place during the wet season, so that the soil
around the young trees remains moist while the roots become firmly
established. 5.1.2. Harvesting the Cherries
Depending on the variety, it will take approximately 3 or 4 years for the newly
planted coffee trees to begin to bear fruit. The fruit, called the coffee cherry,
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turns a bright, deep red when it is ripe and ready to be harvested. In most
countries, the coffee crop is picked by hand, a labor-intensive and difficult
process, though in places like Brazil, where the landscape is relatively flat and
the coffee fields immense, the process has been mechanized. Whether picked
by hand or by machine, all coffee is harvested in one of the two ways:
Strip Picked - the entire crop is harvested at one time. This can either be done
by machine or by hand. In either case, all of the cherries are stripped off of the
branch at one time.
Selectively Picked - only the ripe cherries are harvested and they are picked
individually by hand. Pickers rotate among the trees every 8 - 10 days,
choosing only the cherries which are at the peak of ripeness. Because this kind
of harvest is labor intensive, and thus more costly, it is used primarily to
harvest the finer arabica beans.
In most coffee-growing countries, there is one major harvest a year; though
in countries like Colombia, where there are two flowerings a year, there is a
main and secondary crop. A good picker averages approximately 100 to 200
pounds of coffee cherry a day, which will produce 20 to 40 pounds of coffee
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beans ( about 20% by weight). The day's harvest (cherries) is then combined
and
transported
to
the
processing
plant.
Dry
Method
This is the age-old method of processing coffee and is still used in many
countries where water resources are limited. The freshly picked cherries
are simply spread out on huge surfaces to dry in the sun. In order to
prevent the cherries from spoiling, they are raked and turned throughout
the day, then covered at night, or if it rains, to prevent them from getting
wet. Depending on the weather, this process might continue for several
weeks for each batch of coffee. When the moisture content of the cherries
drops to 11 percent, the dried cherries are moved to warehouses where
they are stored
B. The
Wet
Method
In wet method processing, the pulp is removed from the coffee cherry
after harvesting and the bean is dried with only the parchment skin left
on.
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There are several actual steps involved. First, the freshly harvested
cherries are passed through a pulping machine where the skin and pulp is
separated from the bean. The pulp is washed away with water, usually to
be dried and used as mulch. The beans are separated by weight as they
are conveyed through water channels, the lighter beans floating to the
top, while the heavier, ripe beans sink to the bottom. Next they are
passed through a series of rotating drums which separate them by size.
'parchment coffee,' are warehoused in sisal or jute bags until they are readied
for export.
5.1.5. Milling the Beans
Before it is exported, parchment coffee is processed in the following manner:
a. Hulling
Machines are used to remove the parchment layer (endocarp) from wet
processed coffee. Hulling dry processed coffee refers to removing the
entire dried husk -- the exocarp, mesocarp & endocarp -- of the dried
cherries.
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This is an optional process in which any silver skin that remains on the
beans after hulling is removed in a polishing machine. While polished
beans are considered superior to unpolished ones, in reality there is little
difference between the two.
c. Grading
&
Sorting
Before being exported, the coffee beans will be even more precisely
sorted by size and weight. They will also be closely evaluated for color
flaws or other imperfections.
Typically, the bean size is represented on a scale of 10 to 20. The number
represents the size of a round hole's diameter in terms of 1/64's of an inch. A
number 10 bean would be the approximate size of a hole in a diameter of 10/64
of an inch and a number 15 bean, 15/64 of an inch. Beans are sized by being
passed through a series of different sized screens. They are also sorted
pneumatically by using an air jet to separate heavy from light beans.
Next defective beans are removed. Though this process can be accomplished
by sophisticated machines, in many countries, it is done by hand while the
beans move along an electronic conveyor belt. Beans of unsatisfactory size,
color, or that are otherwise unacceptable, are removed. This might include overfermented beans, those with insect damage or that are unhulled. In many
countries, this process is done both by machine and hand, insuring that only the
finest quality coffee beans are exported
5.1.6. Exporting the Beans
The milled beans, now referred to as 'green coffee,' are ready to be loaded
onto ships for transport to the importing country. Green coffee is shipped in
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either jute or sisal bags which are loaded into shipping containers, or it is bulk
shipped inside plastic-lined containers.
5.1.7. Tasting the Coffee
At every stage of its production, coffee is repeatedly tested for quality and
taste. This process is referred to as 'cupping' and usually takes place in a room
specifically designed to facilitate the process. First, the taster -- usually called
the cupper -- carefully evaluates the beans for their overall visual quality. The
beans are then roasted in a small laboratory roaster, immediately ground and
infused in boiling water, the temperature of which is carefully controlled. The
cupper "noses" the brew to experience its aroma, an integral step in the
evaluation of the coffee's quality. After letting the coffee rest for several
minutes, the cupper "breaks the crust" by pushing aside the grounds at the top
of the cup. Again the coffee is nosed before the tasting begins.
To taste the coffee, the cupper "slurps" a spoonful with a quick inhalation. The
objective is to spray the coffee evenly over the cupper's taste buds, and then
"weigh" it before spitting it out. Samples from a variety of batches and different
beans are tasted daily. Coffees are not only analyzed this way for their inherent
characteristics and flaws, but also for the purpose of blending different beans or
determining the proper roast. An expert cupper can taste hundreds of samples
of coffee a day and still taste the subtle differences between them.
5.1.8. Roasting the Coffee
Roasting transforms green coffee into the aromatic brown beans that we
purchase, either whole or already ground, in our favorite stores. Most roasting
machines maintain a temperature of about 550 degrees Fahrenheit. The beans
are kept moving throughout the entire process to keep them from burning and
when they reach an internal temperature of about 400 degrees, they begin to
turn brown and the caffeol, or oil, locked inside the beans begins to emerge.
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The sustained production and processing of high quality coffee is to a very large
extent dependent on efficient and cost effective engineering inputs. Coffee
quality is dependent on production management practices at the farm level
such as fertilization, spraying against infection, tillage practices, and irrigation
and harvesting. The quality is also dependent on processing operations at
factories such as reception, pulping, pre-grading, fermentation, grading,
conditioning, drying, storage and waste management. Transport of cherry and
parchment must also be effected efficiently to ensure a cost effective operation.
Precise milling of coffee also contributes to the final quality and productivity.
5.1.11 Different Processing Methods and Terms Used in the Coffee
Industry:
a) Caf nature dry-processed or sun-dried coffee. This is generally the
Robusta coffee but some Arabicas are also prepared this way.
In this case, the ripe red cherry, once harvested, is spread out in the sun to dry.
The two skins round the bean, the cherry skin and the parchment skin, dry
together, and are removed, once the coffee reaches a moisture content of about
12%, through a single milling or hulling process. The clean coffee (caf
marchand tout venant) is then sorted and graded before export.
b) Washed coffee - which is generally used for the Arabica coffee, consists of
the de-pulping of the coffee immediately after harvest. This is done mainly
using small manual machines, which squeeze the cherries between a disc or
drum, and the coffee bean and its parchment skin come through the process.
The cherry skin is discarded. The parchment, or parchment coffee as it
is then called, needs to be fermented, in order to break down the mucilage
coating round the parchment skin. This takes 12 to 48 hours, depending on
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pulping machine, which provides for some sorting of the cherry before pulping.
The fermentation and washing process, by virtue of a better scale, can generally
be better monitored to achieve higher qualities. These units may be called
Coffee Washing Station (CWS) a term generally used to denote a larger
factory, with a capacity of 100 tons or more of clean coffee per season.
Central Processing Unit (CPU) a term generally used to describe a smaller
scale Coffee Washing Station, with a capacity which might range from 5 tons to
50 tons of clean coffee per season
Wet-mill the term used in Central America to describe a Coffee Washing
Station. Almost all Central Americas arabica production is processed through
wet-mills.
d) Ecological pulping is a recent development, which has come from Brazil
and Colombia, two of the worlds largest coffee producers. The process is the
same as for fully washed coffee, but the new design of the machinery provides
for the additional of a mechanical removal of the mucilage. The coffee passes
through the pulping unit to remove the outer cherry skin, then instead of
passing to the fermentation and washing processes, instead the parchment
goes directly into the mucilage remover. This mechanically removes the
mucilage in a matter of minutes, and the parchment can be taken out and dried
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e) Outturn percentages
The profitable operation of any coffee processing facility requires the very
careful monitoring and control of the outturn percentages. This term refers to
the net weight of coffee which remains after one stage in the processing,
expressed as a percentage of the net weight of the coffee before the
processing.
ARABICA Hand-pulped parchment
-
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ROBUSTA Wet-processed/washed
-
Again, this may be considerable impacted by the quality of the cherry from
the small-holders
A COMPLETE PROCESSING SCHEME FOR MANUFACTURING COFFEE
( FROM PLANTATION TO THE FINISHED COFFEE PACKAGING )
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However, the promoters may acquire higher land keeping in view future
expansion and growth in business. The cost of the leased land will be appx. AED
one million per annum.
6.2 : BUILDING :
shed construction
Chemical Storage
Store House & Ware House
Workshop
Administration building
Peeler-Polisher-Hand Operated
Peeler-Polisher-Motorised
Sampling Catador
Detailed Drawings detailing with the above structures and facilities shall be developed and finalized
at the time of detailed engg. of this project, once the financial approvals are accorded.
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13 / 14, Seva Sadan Building, CA Road, NAGPUR 440 001,
POLISHER
DE-STONER
PULVERISER
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VIBRO - CLEANER
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. Cost Summaryfollows
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Administration Building
Laboratory area
Chemical Storage
- 1500 sq feet
Workshop
3000 sq feet
1000 sq feet
5000 sq feet
Items
Coffee Pre-Cleaner
Green Been Separator
Dry Stoner
Huller
Mucilage Remover
Polisher
Grader
Conveyer System
Gravity Table
Broad Specs
Cost in Dhm
Separator
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10
11
12
packaging
Central Dust
13
Collection Unit
Electrical Switch and
Control Panel
Fire Fighting Facilities
TOTAL P & M
14
1000,000
Note :
Specifications & Break up for individual equipment to be worked out at
the time of preparing detailed engg and tendering documents after the
financial approval of the projects.
-
Peeler-Polisher-Motorised
Sampling Catador
7.2
= 4,000,000
7.2.1
AED
1000,000
7.2.2
7.2.3
120 HP
Manpower requirement:
All figs in AED
No
1
2
3
4
5
6
7
8
9
10
1
1
1
4
4
3
2
2
5
10
32
Factory Manager
Maintenance Supervisor
Accounts Officer
Plant Operators
Plant Technicians
Accounts Clerk
Store House Supervisor
Dispatch Supervisor
Security personnel
Casual Laborers
TOTAL MANPOWER
Add Perks @ 20 % of salaries
Yearly
Package
160,000
140,000
120,000
40,000
35,000
35,000
40,000
30,000
20,000
15,000
243,000
1458,000
LS :
200,000
Total yearly
expenses
160,000
140,000
120,000
160,000
140,000
105,000
80,000
60,000
100,000
150,000
1,215,000
30,000,000
33,808,000
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= AED 3,125,500
= AED 9,375,000
8.1
ASSUMPTIONS :
1. 100% capacity utilization @ 25 TPD or 7500 Tonnes per
year.
2. Present selling price of coffee powder / beans: AED
10,700 per Tonnes.
3. Increase in revenues @ 5% per year due to rise in prices.
4. Increase in cost of production ( including raw materials @
5% p.a.
5. Depreciation of Building @ 10% on straight line basis
6. Depreciation of Plant & machine @ 16.66% on straight
line basis
7. Interest cost @ 5.5% on the depleting balance of total
outstanding after loan repayments.
S.No/ Item
Year
1
Yearly
80.25 84.26
88.48
92.90
97.40
Revenues
Cost of
33.81 35.50
37.28
39.14
41.09
production
Dep of
0.29
0.29
0.29
0.29
0.29
bldg..@10%
Dep of P &
0.18
0.18
0.18
0.18
0.18
M @ 16.66
Gr Proft b4
45.97 48.29
50.90
53.29
55.84
interest
Loan
5.00
5.16
Nil
Nil
Nil
Installment
Interest on
0.52
0.27
Nil
Nil
nil
45.45 48.02
50.90
53.29
55.84
interest
Profit /
3.63
3.84
4.07
4.26
4.47
10
invest ratio
Profit as %
56.6
56.99
57.52
57.92
57.33
Total
depleting
O/s
Net profit
after
of sales
Notes :
1. Any Excize, sales tax and any other business taxes are not taken
into a/c. If any, the same shall be built into selling price and
recovered from the customers.
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2. Spectrum Industries,
Email: www.spectrumindustries.org
Mobile: +(91)-9844043990
3. Thermal Engg Corporation,
E- 168, Kavinagar Industrial Area,
Ghaziabad, U.P ( India) 201 002
Phone: +91 120 2700429,
Email: thermaengggzb@yahoo.co.in
Website : www.thermalengg.com
4. Heifie Angelon Electronics Co Ltd.,
Tel: 86 551 584 7811
Email: sales@angelon.com
Website : http://www.ajlong.cn/en/default.asp
_____________________
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