National Institute of Technology

Kurukshetra

Industrial Setup Plan

For
Peanut Butter Manufacturing Plant

Submitted By:
Sanyam Arora (11510025)
Mayank Singhal (11510262)
Shivam Gupta (11510292)
 PEANUT BUTTER

INTRODUCTION
Peanut butter is made from raw peanuts by roasting and crushing to paste. It is very
nutritional product as it contains about 48% protein and minerals. It is used widely as
bread spread. In India it is gradually becoming popular in urban areas. Super
marketshelf now can be seen with peanut butter jar. There are mainly two types of
peanutbutter based on smoothness of the end product. Creamy products are very
fine and crunchy products are coarse in nature. Moreover other types are made by
adding small quantity of chocolate or fruit jelly. The shelf life of the butter is about
twelve monthsfrom the date of manufacturing. It is not required to store peanut
butter in refrigeratoror cold temperature. It can be stored at ambient temperature.
However once seal isopened it has to be under lower temperature.

PRODUCTS AND ITS APPLICATION

Peanut butter is formulated using good quality peanut paste, sugar, salt, stabilizer
etc. to prevent oil separation in the container stabilizer is added at the end of the
process.
The taste of peanut butter varies from place to place. Therefore addition of sugar
and salt is done depending on the local demand. For consumer pack it is usually
packed in 200, 500 and 1000 grams PET jar. USA is the largest consumer of Peanut
Butter.
For institutional sales, it is packed in larger containers of five and ten Kg. pales. For
industrial applications such as in confectionary, chocolate, bakery products, ice
cream etc. it is packed in 200 Kg drums.

INDUSTRY OUTLOOK/ TREND

The size of Indian food processing industry is estimated to be at around rupees 12
lakh crores. It contributes 9% of country GDP and growing at about 10% per annum.
Withencouragement to setup food processing parks and incentives from
Government, Food processing sector is growing rapidly. The newer products in the
market are being introducedwith advanced technology, packaging and enhanced
shelf-life.

SUGGESTED LOCATION
Saurastra region of western Gujarat is known as the groundnut bowl of India. Amreli,
Bhavnagar, Jamnagar, Jungadh and Rajkot are main Groundnut producing five
districts of Saurastra and hence suggested location for proposed Peanut Butter
project in Gujarat is in this region. These districts also have availability of basic
industrial infrastructure, like land, water, power, manpower and transport facilities
for domestic and export market access

LAND
The proposed units Capacity is 3,000 MTPA of raw material, which will produce 2,250
MTPA of finished product. The proposed project will require approx. 4000 Sq.mt of
land and proposed built up area for proposed unit will be approx. 1000 Sq.mt. The
unit will have installed capacity of 10 TPD on single shift working basis.

MARKET POTENTIAL AND MARKETING ISSUES, IF ANY

There are about ten plants producing peanut butter in India and mainly
concentrated in the state of Gujarat. Most of the existing units are exporting peanut
butter toMiddleEast, south East Asia, Japan, USA, Canada and some of the African
countries. TheExisting units are working reasonably well and some of them are
expansion mode.However they face problem of getting quality peanut as available
raw material in India ishighly infected with aflatoxin and it is a matter of concern for
export.
While export market is still growing and Indian share is increasing in international
market, back home market for peanut butter is limited but growing at slower pace.
With increase in awareness and health benefits, future looks bright for local sell. In
India institutional sale is rapidly increasing with newer products in the market.
Foreign companies are also putting up their facilities in food processing sector and
some of them need peanut butter.
Growth Drivers

 The market for Peanut butter is likely to grow due to emerging demand for
healthier andnutritious products.
 Demand in healthier Low calories & low fat food like wheat bread and peanut
butter due to emergence of nuclear family and hectic life schedule.
 Changing life style and shift towards consumption of convenient food.

RAW MATERIAL REQUIREMENTS

The main raw material required is good quality peanut having aflatoxin content less
than5 ppb. The main producing states for raw peanut are Gujarat, Andhra Pradesh,
UttarPradesh, Bihar and Rajasthan. It is usually bought in deshell form to prevent
dusting. As shelf life of peanut is short it is purchased as and when required or
stored at about 8 degree centigrade.
Other raw materials like sugar, salt and stabilizer are locally available without any
difficulty. Packaging material such as PET jar, plastic pale, corrugated box, sealing
tape etc. are required to pack jars. It is mandatory to write ingredients used in
formulation of peanut butter.
Cost Of Raw Peanuts = Rs. 50/kg
Annual cost of Raw Peanuts = Rs. 15 Cr.

MANUFACTURING PROCESS

 Pre cleaning and shelling of Ground nuts in shell

 Kernel Grading using Sortex
 Dry roasting, Cooling and blanching: A photometer indicates when the cooking is
complete. At the exact time cooking is completed, the roasted peanuts are
removed from heat as quickly as possible in order to stop cooking and produce a
uniform product. The hot peanuts then pass from the roaster directly to a
perforated metal cylinder (or blower-cooler vat), where a large volume of air is
pulled through the mass by suction fans. The peanuts are brought to
atemperature of 86 degrees Fahrenheit (30 degrees Celsius). Once cooled, the
peanuts passthrough a gravity separator that removes foreign materials. The
skins (or seed coats) are nowremoved with either heat or water. The heat
blanching method has the advantage of removingthe hearts of the peanuts,
which contain a bitter principle.

 Heat blanching: Depending on the variety and degree of doneness desired, the
peanuts areexposed to a temperature of 280 degrees Fahrenheit (137.7 degrees
Celsius) for up to 20minutes to loosen and crack the skins. After cooling, the
peanuts are passed through theblancher in a continuous stream and subjected
to a thorough but gentle rubbing betweenbrushes or ribbed rubber belting. The
skins are rubbed off, blown into porous bags, and thehearts are separated by
screening.

 Water blanching: A newer process than heat blanching, water blanching was
introduced in 1949. While the kernels are not heated to destroy natural
antioxidants, drying is necessary inthis process and the hearts are retained. The
first step is to arrange the kernels in troughs,then roll them between sharp
stationary blades to slit the skins on opposite sides. The skinsare removed as a
spiral conveyor carries the kernels through a one-minute scalding waterbath and
then under an oscillating canvas-covered pad, which rubs off their skins.
Theblanched kernels are then dried for at least six hours by a current of 120
degrees Fahrenheit (48.8 degrees Celsius) air.

 Grinding and Mixing of ingredients (In this phase peanut butter is prepared):
Peanut butter is usually made by two stage grinding operations. The first
 reduces the nuts to a medium grind and the second to a fine, smooth texture.
For fine grinding, clearance between plates is about .032 inch (.08 centimeter).
The second milling uses a very high-speed grindercum mixer that has a
combination cutting-shearing and attrition action and operates at 9600 rpm.
This milling produces a very fine particle with a maximum size of less than 0.01
inch (.025 centimeter).
Peanuts are kept under constant pressure from start to finish of the grinding
process to assure uniform grinding and to protect the product from air bubbles.
A heavy screw feeds the peanuts into the grinder. This screw may also deliver
the de-aerated peanut butter intocontainers in a continuous stream under even
pressure.

 Rotator for creating texture of Peanut Butter: From the grinder, the peanut
butter goes toa stainless steel hopper, which serves as an intermediate mixing
and storage point. Thestabilized peanut butter is cooled in this rotating
refrigerated cylinder (called a votator), from 170 to 120 degrees Fahrenheit
(76.6 to 48.8 degrees Celsius) or less before it is packaged.

 Packing: The stabilized peanut butter is automatically packed in jars, capped,

and labeled.Since proper packaging is the main factor in reducing oxidation
(without oxygen no oxidationcan occur), manufacturers use vacuum packing.
After it is put into final containers, the peanutbutter is allowed to remain
undisturbed until crystallization throughout the mass is completed.
Jars are then placed in cartons and placed in product storage until ready to be
shipped out to retail or institutional customer. Peanut Butter technology could
be sourced from CFTRI, Mysore or from any established foodtechnology and
machinery suppliers from India. The unit shall require procuring few critical
Plant andMachineries / equipment from abroad to meet quality requirements as
per international quality requirements. The manufacturing process is
schematically shown:

1) Pre Cleaning & Shelling Of Groundnut in Pods

2) Peanut Kernel & Husk Separation
3) Peanut Kernel Sorting & Grading
4) Peanut Roasting & Blanching
5) Peanut Grinding & Other Ingredients Mixing
6) Cooling, Homogenization & De-aeration
7) Packing through Piston Feeder
8) Carton Packing &Palletization For Export
Plant and Machinery
Proposed plant and machineries details are as summarized below:

Sr. No. Particulars Quantity Suppliers

Goldin (India) Equipment
1 Hoppers & Elevators 3
Pvt. Ltd., Vadodara
Goldin (India) Equipment
2 Seed Cleaner 1
Pvt. Ltd., Vadodara
Goldin (India) Equipment
3 De-stoner 1
Pvt. Ltd., Vadodara
Vibrating Sieve with dust Goldin (India) Equipment
4 1
aspiration system Pvt. Ltd., Vadodara
Pods Opener with pneumatic
5 1 Parmar Engineering Co.Jasdan,
Husk separator
Goldin (India) Equipment
6 Slotting Screen 1
Pvt. Ltd., Vadodara
7 Picking / Sorting Tables 2 Shriji Nut Co., Jam Kandorna, Rajkot
Goldin (India) Equipment
8 Vibrating Screen 1
Pvt. Ltd., Vadodara
Radiant Ray Roaster for dry
9 1 Shriji Nut Co., Jam Kandorna, Rajkot
roasting
10 Cooling Sieve 1 Shriji Nut Co., Jam Kandorna, Rajkot
11 Whole / broken nut blancher 1 Shriji Nut Co., Jam Kandorna, Rajkot
12 1st stage Peanut Butter mill 1 John Fowler & Co. Ltd, Bangalore
13 2nd Stage Peanut Butter mill 1 John Fowler & Co. Ltd, Bangalore
14 Stabilizer Feeder 1 Shriji Nut Co., Jam Kandorna, Rajkot
15 Ingredient Feeder 1 Shriji Nut Co., Jam Kandorna, Rajkot
16 Ribbon Blender 2 Shriji Nut Co., Jam Kandorna, Rajkot
Scrap Surface Heat
17 1 SSP, New Delhi / Cheery Burrel, USA
Exchanger
18 Ammonia Chilling Plant for 1 Alfa-Laval India Ltd., Pune
 refrigeration
19 SS Piping Kit Lot Alfa-Laval India Ltd., Pune
Piston Feeler for Peanut
20 2 Alfa-Laval India Ltd., Pune
Butter Packing line
Chamber less vacuum
21 1 Alfa-Laval India Ltd., Pune
packing machine
Electronic Weighing scale 1
22 3 Anamed / Every India Ltd-Ahmedabad
to 5 Kg.size
Pellet Truck for Loading in
23 1 Godrej & Boyce Mfg. Co. Ltd., Mumbai
Container

MAN POWER REQUIREMENT

Estimated total manpower requirement for the proposed unit is 20 persons, which
comprises of 3 Managerial persons, 8 persons staff in manufacturing section, 2
persons in Quality control, 7 other staff including purchase and marketing
assistantsSuggested LocationSaurastra region of western Gujarat is known as the
groundnut bowl of India. Amreli, Bhavnagar,Jamnagar, Jungadh and Rajkot are main
Groundnut producing five districts of Saurastra and hencesuggested location for
proposed Peanut Butter project in Gujarat is in this region. These districts alsohave
availability of basic industrial infrastructure, like land, water, power, manpower and
transportfacilities for domestic and export market access.

BUDGET
S.No. Description INR in Lacs
1. Land and Land Development 110
2. Building & Civil work 160
3. Plant & Machinery 300
4. Furniture, Electrical Installations 10
5. Other Assets including Preliminary / Pre-operative expenses 20
6. Margin for Working Capital 180
Total 780