12

G ROUND AND PROCESSED SPICES

PRODUCT CODE : 219201005

QUALITY AND STANDARDS : Mandatory : PFA Act, 1954
Optional : ISI/Agmark
PRODUCTION CAPACITY : Qty. : 8000 Kg. per month
: Value : Rs. 7,25,000 per month
MONTH AND YEAR : May, 2003
OF PREPARATION
PREPARED BY : Small Industries Service Institute
E-17/18, Udyog Nagar, Naini,
Allahabad (U.P)
Phone Nos. 2696810, 2697468
Fax: 2696809

INTRODUCTION demand for unadulterated spices and

Spices play an important role in
enhancing the flavour and taste of the
processed foods. They are also used in
the medicines because of their
carminative, stimulative and digestive
properties. India produces almost all the
known spices and is the largest exporter
of this commodity. Ground spices are
extensively used in all types of curried
dishes in India and abroad.
Although spices are traded chiefly in
an unprocessed form, a small yet
significant quantity enters international
trade as spice powders. Curry powder
is the foremost of those blends or mixes
and sometimes consists of 20 or more
spices designed to add the characteristic
flavour of an Indian curry, which is
appreciated all over the world. Apart
from the overseas market, processed
curry powder is becoming popular in the
domestic market also. Hence the
curry powder in attractive handy
packaging, is fast emerging.
MARKET POTENTIAL
India is one of the leadings exporters
of spices. The export earnings from
spices can be increased quite
considerably if the export of spices is
encouraged in processed form, which
will bring more value addition to the unit
price of whole spices. Further as it is a
mass consumption item mostly used in
culinary preparations or seasoning of
food products, its domestic demand is
increasing quite steadily due to
improvement in purchasing power of
people.
B ASIS AND PRESUMPTIONS
i) The scheme is based on single
shift per day 300 working days
per annum.
70 G ROUND AND PROCESSED SPICES
ii) The rate of interest on total capital
investment is taken as 14%.
iii) The break-even point has been
calculated on full capacity
utilization basis.
iv) The unit is located in a rented
premises.
v) For this industry, working capital
has been considered for one
month.
vi) The cost of machinery and
equipments indicated refers to a
particular brand and the prices
are approximately those ruling at
the time of the preparation of this
project profile.
vii) The provision made in the other
respects viz; raw materials,
personnel, utilities and other
expenses are on the basis of the
standard operations and average
output and costs indicated against
each are approximate based on
the local market conditions and
observations.
IMPLEMENTATION SCHEDULE
The project will take atleast 6 months
to come into operation for which the
implementation schedule has been
worked out as follows:
1. Preparation of project 1 month
report, selection of site,
registration as SSI unit
2. Availability of finance, 2-3 months
selection of machinery
and procurement of
machinery
3. Erection and commis- 3-4 months
sioning
4. Recruitment of labour 3-4 months
and commercial pro-
duction
5. Trial run 4-5 months
6. Commencement 6th month
of production onwards
TECHNICAL ASPECTS
Process of Manufacture
The process of manufacture involves
cleaning, drying, pulverizing, sieving and
packing of spices such as chilli, pepper,
tur meric, coriander etc. either
individually or in combination with other
spices. There are various formulations
for curry powder, but the ingredients like
red chilli, black pepper, cloves,
coriander seed, cumin seed, fenugreek
seed, ginger and turmeric are typically
common. The proportion and the
inclusion of spices in a particular mix
depends upon individual manufacturers.
Quality Control and Standards
The following ISI specifications are
available for ground spices:
i) Black pepper whole IS:1778:1982
and ground
ii) Chilli powder IS:2445:1984
iii) Coriander powder IS:2444:1980
iv) Curry powder IS:1909:1961
v) Turmeric powder IS:2446:1980
vi) Method of sampling IS:1797:1973
and test of spices
and condiments
vii) Technology for IS:1877:1973
spices and
condiments
viii)Method of test for IS:1797:1985
spices and condiments
Provisions have also been made in
the scheme for a testing laboratory so
that the unit will be able to test their
products and maintain the quality as per
PFA Act and ‘Agmark’ standards.
 G ROUND AND PROCESSED SPICES 71

Production Capacity Sl. Description Qty. Rate Total

No. (In Rs.) (In Rs.)
Qty. : 8000 Kgs.per month
7. Heat sealer for plastic 2 8000 16000
Value : Rs.7,25,000 per month bags electrically
operated
Motive Power 30 H.P. 8. Form fill seal 1 95000 95000
machine (FFS)
Pollution Control Testing equipments LS 50000 50000
There is no major pollution problem Office furniture and LS 50000 50000
associated in the setting up of this type other equipments
of industry. However, entrepreneur Electrification and 31750
installation charges
should seek guidance from concerned
@ 10% cost of
State Pollution Control Board in this machinery and
regard. equipment
Total 2,17,500
Energy Conservation
(iii) Pre-operative Expenses 31,750
Although the energy requirement is Total Fixed Capital 38,1000
small, adequate care should be taken
in electrical installations and optimal B. Working Capital (per month)
utilization of machinery. i) Personnel

FINANCIAL ASPECTS Sl. Designation

No.
Nos. Salary
(In Rs.)
Total
(In Rs.)
A. Fixed Capital i) Manager 1 8000 8000
(i) Land and Building ii) Supervisors 2 6000 12000
150 sq. meter (rented per month) Rs 3500
iii) Skilled Workers 2 3000 6000
(ii) Machinery and Equipments iv) Unskilled Workers 5 2000 10000
Sl. Description Qty. Rate Total Total 36000
No. (In Rs.) (In Rs.)
ii) Raw Materials including Packaging
1. Micro pulveriser with 2 25000 50000 Requirements
5 HP motor

2. Disintegrator with 1 20000 20000 Sl. Particulars Qty. Rate Amount

7.5 HP No. (Rs) Rs/ kg (In Rs.)
i) Chilli 3000 60 180000
3. Hot air drier cabinet 1 25000 25000
type electrically ii) Turmeric 1500 35 52500
operated with
temp. control device iii) Coriander 1500 37 55500

4. Platform weighing 1 5400 5400 iv) Pepper 1000 210 210000

scale capacity 300 Kg v) Ginger 1000 75 75000
5. Counter scale 1 1100 1100 vi) Packaging LS 25000
balance upto 5 kg materials
cartons, etc.
6. Sieving machine 1 5000 5000
(locally fabricated) Total 598000
72 G ROUND AND PROCESSED SPICES

iii) Utilities Amount (In Rs.) ii) Turnover (per year)

i) Electricity 6000 Item Qty. Rate Total
ii) Water Charges 1000 ( P.M.) (Rs./kg) (In Rs.)

Total 7000 Chilli powder 3000 Kg 80 2,40,000

iv) Other Contingent Expenses Amount Turmeric powder 1500 Kg 45 67,500

(In Rs.) Coriander powder 1500 Kg 45 67,500
i) Rent 3500 Pepper powder 1000 Kg 250 2,50,000
ii) Postage and stationery 1000
Ginger powder 1000 Kg 100 1,00,000
iii) Repair and maintenance 1500
Total 7,25,000
iv) Transportation charges 3000
Turnover (per year)
v) Advertisement and publicity 3000
Rs. 7,25,000 × 12 Rs. 87,00,000
(vi) Other Misc. expanses such 2000
as tax insurance etc. (iii) Net Profit (per year Before Tax)Rs. 6,58,000

Total 14000 (iv) Net Profit Ratio 7.5%

v ) Total Recurring Expenditure Amount (v) Rate of Return 62.3.5%

(per month) (In Rs.)
i) Raw materials 598000 (vi) Break-even Point
ii) Personnel 36000 i) Fixed Cost Amount (In Rs.)
iii) Utilities 7000 a) Depreciation on machinery and 26,750
iv) Contingent expenses 14000 equipments @10%
b) Rent 42,000
Total 655000
c) Interest on total investment 1,45,000
C. Total Capital Investment d) Insurance 30,000
e) 40% of salary and wages 1,72,800
Amount (In Rs.) f) 40% of other contingent expenses 38,400
i) Fixed Capital 381000 Total 4,54,950

ii) Working capital for 1 month 655000 or Say 4,55,00

Total 10,36,000 ii) Net Profit (per year)

B.E.P. = F.C. × 100
FINANCIAL ANALYSIS F.C. + P

= 4.55 × 100
i) Cost of Production (per year) Amount 11.13 (4.55+6.58)
(In Rs.)
= 41%
(a) Total recurring cost/year 78,60,000
(b) Depreciation on machinery 26,750
and equipment @ 10%
Addresses of Machinery and
Equipment Suppliers
(c) Depreciation on Office 10,000
Furniture @ 20% 1. M/s. Batliboi and Co. Ltd.
(d) Interest on total capital 1,45,000 P.B. No. 1719,
investment @ 14% M.G. Road,
Total 80,41,750 Ernakulam,
Say 80,42,000 Cochin-682016.
 G ROUND AND PROCESSED SPICES 73

2. M/s. Jayems Engg. Works 5. M/s. Hindustan Furnaces

M.G. Road, Marar Lane,
Ernakulam -16. Trichur-1.
3. M/s. Avery and Co. of India Pvt. Ltd. 6. M/s. Kerala Scientific Glass Works
Ballard Estate, Industrial Estate,
Mumbai. Ollur.
4. M/s. Chemida India 7. M/s. P.R.S. Technology Pvt. Ltd.
69, Sumitha, Mumbai.
98, Cuffe Parade, Raw Material Suppliers
Mumbai-5. Local Market.