COUNTRY LIQUOR BOTTLING PLANT

[EIRI/EDPR/3912] J.C.: 2032

INTRODUCTION

Country made liquor is a distilled alcoholic beverage made from locally available cheap
raw material such as sugar-cane, rice, palm, coconut and cheap grains, with alcohol
content between 11.4-45.7% V/V5. In developing country like India, it is more popular
among poorer sections of population both in rural and urban part as it is cheaper than
the foreign liquor or Indian made foreign liquor.

IMFL and country liquor goes through the same manufacturing process and is distilled
from the same agricultural source (molasses). The differences are in strength (the
percentage of alcohol) and flavours. Add whisky or brandy flavours, for instance, and it
becomes IMFL. Take the flavour to a tangier side, it’s desi daru.

Country liquor, according to the BIS standards, is rectified Grade I spirit or any neutral
spirit which may be obtained from fermented molasses, grain or any other source of
fermentable carbohydrates. Cut through the technical jargons, all it means is that
alcohol made from molasses and grains and distilled to a fairly high degree so that you
get rectified spirit, minus the impurities.

This also means that it’s not country liquor that’s masquerading as something else but
it’s IMFL that’s being passed off as genuine whisky, alcohol, gin, and brandy etc.

The similarity largely has to do with the manufacturing process. “Both IMFL and
country liquor use the same commercial reactive enzymes and multi-column distillation
process. At a basic level, it’s the same. That’s the standard distillation equipment that
gives rectified spirit.

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Extra Neutral Alcohol (ENA) is the primary raw material for making alcoholic beverages.
It is a colourless food-grade alcohol that does not have any impurities. It has a neutral
smell and taste, and typically contains over 95 per cent alcohol by volume. It is derived
from different sources — sugarcane molasses and grains — and is used in the
production of alcoholic beverages such as whisky, vodka, gin, cane, liqueurs, and
alcoholic fruit beverages.

Neutral spirits, also known as neutral alcohol, rectified spirits, rectified alcohol or ethyl
alcohol is highly concentrated ethanol distilled until it reaches a min. ABV of 95% (190
proof). Neutral spirits can be made from grains, grapes, molasses, potatoes, and other
agricultural origins. As the name suggests, neutral spirits are considered neutral in
flavour, odour and are colourless. Having said that, there are some slight “flavour”
variations among the neutral spirits, leading some to question if neutral spirits are truly
flavourless.

Neutral spirits are widely used to make spirits such as vodka and gin, as well as to ‘cut’
liqueurs and make bitters, besides from its use in the spirits production the neutrality of
rectified spirits also makes it useful in other industries such as the food, non-alcoholic
beverage, pharmaceutical, perfumery, and cosmetics industry. It is common for neutral
spirits intended for cosmetics and perfumes use to have denaturing agents added to it to
reduce tax and to prevent human consumption.

IFB Agro, one of the largest manufacturers of alcohol, also supplies the same grade
spirit to whisky manufacturers and country liquor. Its biggest brands are Hero, Joy,
Captain and Dil Se. Tall boys indeed, with the largest market share in eastern states,
such as West Bengal and Jharkhand.

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 CONTENTS

INTRODUCTION
PROJECT LOCATION
MAP OF DISTRICT
GEOGRAPHY:-
TRANSPORTATION
BY AIR:
BY RAIL:
SHAKTINAGAR STATION
BY ROAD:
INDUSTRIES
TYPES OF NEUTRAL SPIRITS
DIFFERENT GRADES AND TYPES OF NEUTRAL SPIRITS
EXTRA-NEUTRAL ALCOHOL
GRAIN NEUTRAL SPIRITS (GNS)
POTATO-BASED NEUTRAL ALCOHOL
GRAPE NEUTRAL SPIRITS
MOLASSES-BASED ENA
SPECIFICATION OF EXTRA NEUTRAL ALCOHOL
DIFFERENT TYPES OF DESI DARU
1. TODDY, KERALA
2. FENI, GOA
3. HANDIA, JHARKHAND
4. ZUTHO, NAGALAND
5. LUGDI, MANALI
6. CHHANG, LADAKH
7. APONG, ASSAM
8. MAHUA, MAHARASHTRA
9. KESAR KASTURI, RAJASTHAN
10. CHUWARAK, TRIPURA
11. THARRA, NORTH INDIA
ETHANOL FERMENTATION
THEORETICAL YIELD OF 37.5 GRAMS OF MOLASSES:
SUCROSE - FERMENTATION
THEORETICAL YIELD OF 37.5 GRAMS OF SUCROSE:
GLUCOSE – FERMENTATION
MATERIALS NEEDED
METHODOLOGY A. PREPARATION OF WORT
METHODOLOGY B. PREPARATION OF YEAST INOCULUM AND FERMENTATION
METHODOLOGY C. DISTILLATION OF ETHANOL

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MARKET SURVEY
EXTRA NEUTRAL ALCOHOL MARKET: KEY SEGMENTS
EXTRA NEUTRAL ALCOHOL MARKET: REGIONAL OUTLOOK
EXTRA NEUTRAL ALCOHOL MARKET: KEY PLAYERS
CHOICE OF THE MASSES
1/3RD BY VOLUMES OF INDIAN ALCOBEV INDUSTRY
EXPANDING CONSUMER BASE: ~40% OF POPULATION
GROWING DRINKING AGE POPULATION TO BOOST ALCOBEV INDUSTRY
IMIL CONSUMED BY GROWING BASE OF LOWER-INCOME STRATA
IMPROVED QUALITY BRANDED PRODUCTS BUILD STICKINESS
CONSUMPTION OF SUBSTANCES IN INDIA HAS EXISTED SINCE CENTURIES,
TRACED EARLIEST TO 2000 BC.
INDIAN SPIRITS INDUSTRY
INCREASING DRINKING AGE POPULATION
INDIAN MADE INDIAN LIQUOR (IMIL) INDUSTRY
BUSINESS OVERVIEW
MANUFACTURING BUSINESS
CONSUMER BUSINESS
RATIONALE FOR INVESTMENT
KEY IMIL MARKETS
UTTAR PRADESH 2ND LARGEST IMIL MARKET
LOW PER CAPITA CONSUMPTION INDICATES HIGH UNDERREPORTING
HARYANA IMIL: FACING TRANSIENT HEADWINDS
FASTER GROWING EAST INDIA MARKETS
BIHAR: FASTEST GROWING
RAJASTHAN: STEADILY GROWING
LAWS ACROSS THE VALUE CHAIN
BOTTLING & PACKAGING
BEVERAGE ALCOHOL LABELING REQUIREMENTS
LIQUOR LICENSE
NEED FOR LIQUOR LICENSE
DOCUMENTS REQUIRED
APPLICATION PROCEDURE FOR LIQUOR LICENSE
APPROACH EXCISE DEPARTMENT
PROCESSING TIME
LIQUOR LICENSE RENEWAL
PENALTY
DISTILLATION METHODS AID IMIL QUALITY IMPROVEMENT
PRESENT SCENARIO
PROCEDURE AND INSTRUCTIONS FOR PROCUREMENT
E N A APPROVAL
ENA STORAGE
ENA ISSUE
QUALITY CONTROL TEST:

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PLANT LOCATION FACTORS
1. RAW - MATERIAL SUPPLY :
2. MARKETS :
3. POWER AND FUEL SUPPLY :
4. WATER SUPPLY :
5. CLIMATE:
6. TRANSPORTATION :
8. LABOR :
9. REGULATORY LAWS :
10. TAXES :
11. SITE CHARACTERISTICS:
12. COMMUNITY FACTORS:
13. VULNERABILITY TO WARTIME TTACK:
14. FLOOD AND FIRE CONTROL :
RAW MATERIAL SUPPLIERS
RECTIFIED SPIRIT/ ENA FROM DISTILLERY
MACHINERY SUPPLIERS
RAW MATERIAL PHOTOGRAPHS
MACHINERY PHOTOGRAPHS
ALCOHOL TANK
ALCOHOL BOTTLING PLANT
INDUCTION BOTTLE SEALING MACHINE
LIQUOR BOTTLING LINE MACHINE
PRODUCT PHOTOGRAPHS

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APPENDIX – A:

01. PLANT ECONOMICS

02. LAND & BUILDING
03. PLANT AND MACHINERY
04. OTHER FIXED ASSESTS
05. FIXED CAPITAL
06. RAW MATERIAL
07. SALARY AND WAGES
08. UTILITIES AND OVERHEADS
09. TOTAL WORKING CAPITAL
10. TOTAL CAPITAL INVESTMENT
11. COST OF PRODUCTION
12. TURN OVER/ANNUM
13. BREAK EVEN POINT
14. RESOURCES FOR FINANCE
15. INSTALMENT PAYABLE IN 5 YEARS
16. DEPRECIATION CHART FOR 5 YEARS
17. PROFIT ANALYSIS FOR 5 YEARS
18. PROJECTED BALANCE SHEET FOR (5 YEARS)

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 COST ESTIMATION

Plant Capacity 39015 Nos/Day

Land & Building (6000 sq.mt.) Rs. 4.55 Cr
Plant & Machinery Rs. 2.47 Cr
Working Capital for 1 Month Rs. 2.54 Cr
Total Capital Investment Rs. 10.12 Cr
Rate of Return 51%
Break Even Point 34%

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