Manufacturing Potato Chips, Extruded & Fried Snacks Project Report

DETAIL PROJECT REPORT ON
MANUFACTURING OF POTATO
CHIPS, EXTRUDED & FRIED SNACKS
BY
AT
D1-150/G-2, MONDAL PARA ROAD, BISHNU BHAWAN, WARD NO. 31, PUTKHALI,
PO&PS- MAHESHTALA, DIST. SOUTH24 PARGANAS, KOLKATA-700139
Prepared by September-2020
P: +91-8420021789 45, Akhil Mystry Lane

E: projectplusfood@gmail.com Kolkata – 700009
W: www.projectplusfood.com West Bengal, India
TABLE OF CONTENT
1. PROJECT AT A GLANCE .................................................................................................... 1

2. COMPANY PROFILE ......................................................................................................... 3
2.1. Project background & Objectives ............................................................................ 4
3. BIO-DATE OF PROPRIETORS ............................................................................................ 5
4. PROJECT INTRODUCTION ................................................................................................ 6
4.1. Executive summery ................................................................................................. 8
4.2. Indian Snacks Food Market ..................................................................................... 8
4.3. Present Scenario Of Food Processing Industries In India ........................................ 10
4.4. Future Of Indian Food Industry ............................................................................. 13
4.5. Strategies For Success In India's Snack Food Market ............................................. 15
4.6. Key Challenges and Strategic Responses in Snacks Food........................................ 16
4.7. Responses: Develop a clear pricing strategy .......................................................... 17
4.8. Challenge: Diverging Consumer Trends ................................................................. 18
4.9. Response: Closely monitor micro as well as macro trends ..................................... 19
5. MARKET STUDY............................................................................................................. 20
5.1. Market Potentiality ............................................................................................. 20
5.2. Market Scenario .................................................................................................... 20
5.3. Savory Snacks market in India ............................................................................... 20
5.4. Salted Snacks-Namkeen Market Potential ............................................................. 21
5.5. The Branded Salty Snacks Market in India ............................................................. 22
5.6. Savory Snacks – Key players in India ...................................................................... 26
5.7. Top Namkeen Brands in India ................................................................................ 27
5.8. India Snacks Market 2018-2024: ........................................................................... 28
5.9. Overview of India Chips Market ............................................................................ 29
6. MARKETING PLAN: ........................................................................................................ 30
6.1. Executive Summary .............................................................................................. 30
6.2. New Product Idea and Market Opportunity .......................................................... 31
6.3. Market Opportunities ........................................................................................... 31
6.4. Margins ................................................................................................................. 32
6.5. Pricing strategy ..................................................................................................... 33
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6.6. Business Promotion............................................................................................... 33
6.7. Summery & Recommendations: ............................................................................ 35
7. TECHNICAL STUDY – POTATO CHIPS.............................................................................. 36
7.1. Manufacturing Process.......................................................................................... 36
7.2. Process Flow diagram............................................................................................ 37
7.3. Proposed Potato Chips Supply Chain: Food quality and safety issues .................... 37
8. TECHNICAL STUDY – EXTRUDED SNACKS....................................................................... 40
8.1. Flow Chart of Extruded Snacks .............................................................................. 40
8.2. Process control ..................................................................................................... 40
8.3. Description of the extruded corn rings manufacturing process: ............................ 41
8.4. Benefits in the Extrusion systems: ......................................................................... 41
8.5. List of Machinery, Equipment with Specifications & operation: ............................. 42
9. TECHNICAL STUDY – PALLET FRIED SNACKS .................................................................. 43
9.1. Flow Chart of Pallet Fried Snacks .................................................................. 43

9.2. Pallet fried snacks production line ......................................................................... 44
10. RAW MATERIAL STUDY ................................................................................................. 45
10.1. India’s potato production maps ......................................................................... 46
10.2. State-Wise Potato Production In The Country .................................................... 47
10.3. All India monthly arrivals of Potato .................................................................... 48
10.4. Station & variety wise area (ha) and production (qtls) in Conventional system
2017-18 (Plains) in West Bengal ....................................................................................... 48
10.5. Potato Contract farming status in West Bengal .................................................. 49
11. QUALITY CONTROL STUDY ............................................................................................ 50
11.1. Quality Norms ................................................................................................... 50
11.2. Quality Control Process of Potato Chips ............................................................. 50
12. NUTRITIONAL SIGNIFICANCE......................................................................................... 52
13. LAND & LOCATION ........................................................................................................ 53
13.1. Details of the Panagarh Industrial park .............................................................. 53
13.2. Facilities at the Panagarh Industrial park ........................................................... 54
14. PROJECT MISCELLANEOUS ............................................................................................ 55
14.1. Employment Opportunity .................................................................................. 55
14.2. Technical Know-How ......................................................................................... 55
14.3. Plant & machinery ............................................................................................. 55
14.4. Power & other utilities....................................................................................... 56
14.5. Energy Conservation .......................................................................................... 56
14.6. Pollution Control & Environmental Aspect ......................................................... 56

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14.7. Proposed Water Treatment Plant In The Food Processing Centre ...................... 59
14.8. Implementation Schedule .................................................................................. 59
14.9. SWOT Analysis ................................................................................................... 61
14.10. Suggested Capacity of the Project ...................................................................... 62
14.11. Infrastructure Required ..................................................................................... 62
APPENDIX A FINANCIAL EVALUATION ..................................................................... 63
A.1 Basis and Presumption .......................................................................................... 63
A.2 Details Of Fixed Assets .......................................................................................... 64
A.3 Preliminary & Preoperative Expenses .................................................................... 70
A.4 Interest During Construction ................................................................................. 70
A.5 Means of Finance .................................................................................................. 71
A.6 Calculation of Interest & Repayment Schedule ...................................................... 72
A.7 Electrical load calculation sheet for snacks manufacturing plants.......................... 73
A.8 Manpower details ................................................................................................. 74
A.9 Cost Of Production & Profitability Estimate ........................................................... 75
A.10 Margin Money for Working Capital .................................................................... 78
A.11 Depreciation Analysis ........................................................................................ 79
A.12 Computation Of Income Tax .............................................................................. 80
A.13 Cash Flow Statement ......................................................................................... 81
A.14 Breakeven Analysis ............................................................................................ 82
A.15 Debt Service Coverage Ratio .............................................................................. 84
A.16 Internal Rate of Return (IRR) .............................................................................. 84
A.17 CMA Data Analysis ............................................................................................. 85
A.18 Conclusion ......................................................................................................... 94

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1. PROJECT AT A GLANCE
1. NAME OF THE PROMOTING COMPANY : BRINY FOOD PRODUCTS

2. STATUS OF THE UNIT : PROPRIETORSHIP
3. GSTIN : 19CZPPM5302P2ZL
4. PAN : CZPPM5302P
D1-150/G-2, MONDAL PARA ROAD,
BISHNU BHAWAN, WARD NO.-31,
LOCATION OF THE REGISTERED OFFICE
5. : PUTKHALI, PO & PS-MAHESHTALA,
OF THE COMPANY
SOUTH-24 PARGANAS, KOLKATA-
700139
PANAGARH INDUSTRIAL PARK,
6. LOCATION OF THE PROPOSED UNIT : PASCHIM BARDHAMAN, WEST
BENGAL
7. NATURE OF INDUSTRY : FOOD PROCESSING
SNACKS FOOD (POTATO CHIPS,
8. PRODUCT MIX : EXTRUDED & OTHER PALLET FRYED
SNACKS)
I. POTATO CHIPS – 200 KG/HR
II. PALLET FRYED SNACKS – 300
9. PLANT CAPACITY : KG/HR
III. EXTRUDED SNACKS – 200
KG/HR
10. LAND AREA : 2 Acre
11. POWER REQUIREMENT : 300 KW
12. WATER REQUIREMENT : 60000 LPD
13. AIR REQUIREMENT : 120 CFM
14. MANPOWER REQUIREMENT : 53 per shift
15. MANDAYS GENERATED PER YEAR : 300
1 SHIFT IN 1ST YEAR, 2 SHIFT IN 2ND, 3
16. NO. OF SHIFT CONSIDER : SHIFT FROM 3RD, 4TH & 5TH YEAR
ONWARDS.
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10 months after Sanction the

17. PROJECT IMPLEMENTATION SCHEDULE :
Project
18. START OF COMMERCIAL PRODUCTION : April-2022
a) 1ST Year at 60%
19. CAPACITY UTILIZATION : b) 2nd Year at 80%
c) 3rd Year at 80%
20. SUMMERY OF PROJECT COST
Sl. Project Cost Particulars Amount
No.
A. Land & land Development
176.18
B. Building
216.00
C. Plant & Machinery
824.62
D Misc. Fixed Assets
12.50
BLOCK CAPITAL
1,053.12
E. Preliminary & Pre-operative Expenses
48.76
F. Provision for Contingencies(@1.5% on (2)+(3)+(4)+(5))
15.80
G. Margin Money for Working Capital
77.09
TOTAL COST OF THE PROJECT
1,370.67
ANTICIPATED TURNOVER
a) 1ST Year at 60% Capacity utilization : 2096.35 Lakhs
21. b) 2nd Year at 70% Capacity utilization : 5038.22 Lakhs
c) 3rd Year at 80% Capacity utilization : 8896.05 Lakhs
d) 7th Year at 100% Capacity utilization : 12515.73 Lakhs
22. BREAKEVEN ANALYSIS
Average BEP on Sales 40.90%
BEP at Capacity Utilisation 15.75%
BEP at Installed Capacity 12.60%
Cash BEP at Capacity Utilisation 9.57%
23. DSCR : 2.63

24. IRR : 19.35%

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2. COMPANY PROFILE
M/S, Briny Food Products, is a proprietorship company. The company was established in Aug-
2015 with its Registered office at D1-150/G-2, MONDAL PARA ROAD, BISHNU BHAWAN,
WARD NO. 31, PUTKHALI, PO&PS- MAHESHTALA, DIST. SOUTH24 PARGANAS, KOLKATA-
700139: GSTIN: 19CZPPM5302P2ZL. The main objective of the Company to doing a business
in the area of manufacture and sale of Potato chips and others fried and extruded snacks
items. Presently the Company has no liability to bank and any other financial institution.
The name of the Proprietor is Mr. Avik Mondal. He is an young and motivated entrepreneur
working hard for his success. In 2019 at the age of 22years, Avik has joined “Budge Budge St
Thomas Memorial Educational Society” in Budge Budge as a Member of the Governing Body
& to run the School at high end level and began sending information to the School. Avik is
extremely passionate about entrepreneurship and enjoys sharing what he’s learned with
others. Avik is pursuing Graduation from KIIT School of Architecture and Planning,
Bhubaneshwar, Ordisha with a Degree in Architecture. Avik always had a passion for
entrepreneurship and saw himself working in Food Processing with a big name in Snacks
Industry.
The Promoter of this Company have other Business activities in line of Construction with
Buildings, Road and other Civil works with engaged in Govt. and different private work
contract in the Banner of SUNIRMAN. This is the Proprietorship Company with the same
Proprietor of Mr. Avik Mondal. The Company “SUNIRMAN” was established in the year of
2017 with registered office address at 204/C, DHARMATALA ROAD, BUDGE BUDGE, SOUTH 24
PARGANAS, KOLKATA-700137.
After in-house business investigation towards that end, potato chips and others fried and
extruded snacks manufacturing activity has been identified by the company promoter as one
of the attractive business possibilities. The group has thereafter embarked on the potato chips
and other snacks manufacturing project under the banner of BRINY FOOD PRODUCTS.

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2.1. Project background & Objectives
With objectives to accelerate the growth of food processing industry in the country, to
achieve processing level of perishables up to 20% of the produce, increasing value addition
up to 35% and capturing the share in global food trade up to 3% by the year 2020.
Main feature of this Food Processing Centre for developing infrastructural facilities along
the value chain for forward and backward integration. The project focuses on demand driven,
pre-marketed approach and would facilitate food processing units to meet various food
safety, social and environmental standards.
The outcomes envisioned are: remunerative prices to the farmers for their produce which will
result in drudgery reduction in agriculture, curbing the wastages in agricultural produce
thereby increasing effective marketable surplus, capacity building for the producers,
providing alternative marketing channels to the farmers, efficient supply chain along with
direct and indirect employment generation so as to get labour force out from the
agricultural system which is a part of disguised unemployment.

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3. BIO-DATE OF PROPRIETORS
NAME : MR. AVIK MONDAL
FATHER’S NAME : MR. SAJAL KUMAR MANDAL
PRESENT & PARMANENT ADDRESS : 204/C, DHARMATALA ROAD, BUDGE BUDGE, SOUTH
24 PARAGANAS, KOLKATA - 700137
MOBILE NO. : +91-8697662810/9433475157
EMAIL ADDRESS : info.brinyfoodproducts@gmail.com
DATE OF BIRTH : 18.02.1998
SEX : MALE
EDUCATIONAL QUALIFICATION : B. Arch
AADHAAR CARD NO. : 233343639233
IT PAN NO. : CZPPM5302P
PROFESSION : BUSINESS
EXPERIENCE : MORE THAN 3 YEARS EXPERIENCE IN CIVIL

CONSTRUCTION ACTIVITIES.

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4. PROJECT INTRODUCTION
Consumers are buying snacks in greater variety and quantity than ever, and extrusion
technology produces almost all of them. Snacks are one of the fastest-growing segments of
the food industry, and for years, extrusion has been a mainstay of producing new and creative
products. Extrusion cooking produces a wide range of finished products from inexpensive raw
materials with minimum processing time.
A snack food (commonly called a snack) is seen in Western culture as a type of food not
meant to be eaten as a main meal of the day – breakfast, lunch, or dinner – but one rather
that is intended to assuage a person's hunger between these meals, providing a brief supply
of energy for the body. The term may also refer to a food item consumed between meals
purely for the enjoyment of its taste.
Traditionally snacks were prepared from ingredients commonly available in the home, often
leftovers, sandwiches made from cold cuts, nuts, fruit, and the like
Traditionally snacks were prepared from ingredients commonly available in the home, often
leftovers, sandwiches made from cold cuts, nuts, fruit, and the like. The Dagwood
sandwich was originally the humorous result of a cartoon character's desire for large snacks.
With the multiplication of convenience stores, packaged snack foods are now a significant
business. Snack foods are typically designed to be portable, quick and
satisfying. Processed snack foods are designed to be less perishable, more durable, and/or
more appealing than prepared foods. They often contain substantial amounts
of sweeteners, preservatives, and appealing ingredients such as chocolate, peanuts, and
specially designed flavors (such as flavored potato chips). A snack eaten shortly before going
to bed or during the night may be called a midnight snack.

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In India around 12 million tonnes of potato is grown which is about 4% of the total world
production However, the per capita consumption of potatoes is low. It is estimated that 25%
of the potatoes, which is spoiled due to Various reasons such as transportation, type of
packing, availability of cold storage Capacities during Harvesting Season , glut in the market
etc., could be saved by making various Preserved potato products Potato wafer is one of such
products which has a great potential as this is considered as one of the traditional food of
India. Potato wafers are needed to be made in a scientific manner and under hygienic
conditions.
The popularity of snacks food is growing fast day-by-day and potato wafers have emerged as
a potential snack food. A number of organized as well as unorganized groups are already
there, catering to the needs of tea stalls, restaurants, railway stations, tourist places etc. Still
there is a huge demand to be met for these products in interior and remote places in different
parts of the country
Salted snacks are a part of the snacks consumed by Indians. Since Indians are known
worldwide for their tasty tangy and spicy food habits the snacks industry in India is huge is no
surprise. The Snacks market in India is magnanimous which consists of both the organized and
the unorganized sectors. The unorganized market consists of home made and loose salty
snacks generally sold in small Kiranas. The branded or the organized Snacks segment in India
is increasing virtually by the day. Some of the major players in the Indian Snacks market consist
of Haldiram Foods, Frito-Lay, Balaji wafers, Itc Bingo etc.
The salted snacks-namkeen manufacturing project has lot of scopes and huge market demand
as it is a product of FMCG industry. Products are quite famous in India and are consumed in
good quantity. Potatto Chips, Extruded and pallet fried snacks are the important names of
salted snacks. These are very tasty and flavouring. These are used during tea and drink hours.
They are also used in medicinal way, however little it may be, according to ayurveda because
of their carminative stimulative digestive properties.

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The main raw materials for these products are potato, Cereals, Gram pulses, Oils & spices.
The various food additives & colours may be used to provide sophistications in the products.
the raw material are frequency available in India. These salty food products get a broad
market in foreign countries. These products are very much popular not only in India but also
overseas countries. Hence, there are a lot of scope and market of these products & therefore,
it will provide a very much profitable business.
4.1. Executive summery
Potato chips currently represent one of the world’s most popular snack foods. From its
accidental birth in 1853, the potato chips market has evolved with time and currently
represents a multi-billion dollar market. Owing to their easy affordability and cheaper price
even for the premium products, potato chips are popular among all age groups. Currently, the
growing young population (below 15 years) represents a key segment for the potato chips
market. Major factors driving the global demand of potato chips are growing urbanisation,
rise in disposable incomes and rapidly changing lifestyles. A busy lifestyle coupled with long
working hours have forced people to shift from elaborate luncheons and meals to desk snacks
and packaged foods. Other factors like value addition and growth of emerging markets are
also expected to propel the demand of this market. According to IMARC Group, the global
potato chips market has grown at a CAGR of around 4% during 2009-2016 and reached a
market value worth US$ 26 Billion.
4.2. Indian Snacks Food Market

After 1995, India has seen a massive change in Snack food market. The meaning of snack has
been redefined from chips and cookies to beverages, mini-meals and even three items on the
plate. There is a rise in demand of snacks market which drives manufactures to grow and
operate in this segment lucratively.
Due to the busier lifestyle in the recent past, the demand for convenience products has
increased a lot with the thrust of packaged food in India. With the advancement of
technology, urbanization, increase in purchasing power, growth in female work population,

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expansion of nuclear families has augmented the business of the packaged snack food and
attracted a large mass toward the snack market in India. In order to save time, people are
gradually shifting to ready to eat food items.
And the growth rate of the packaged food market has been remarkable in last five years. The
food industry has expanded at the rate of 15.6% over the last few years. The consistent growth
rate presently outlooks for driving growth in future too.
The consumers are looking forward for healthier and flavourful options in the food market.
There is an increase in the consumer interest towards snacks as there are various brands in
this segment with newer technology and more benefits giving them refreshing and quick
meals.
The fast expanding retail network and the convenience and ease of acquiring it, contributes
towards the rapid growth of the industry. I addition, there are no such regulations and
Government policies regarding the establishment of such companies in India which motivates
the manufacturers to set up its units.
Apart from this, there are some challenges the Indian snack industry has which can result in a
setback. Despite of so many companied in the market, the market yet needs to find Indian
flavors to fully satisfy them. The new items have failed to replace the traditional food at some
places. Chips and biscuits are still considered by Indians and so new categories are created
which would require time and persistence. Healthier and tastier snack is still needed to raise
the demands.
So the leading players in this segment are taking relevant steps to retain, sustain and grow in
the market. They are trying their level best with various innovative options, tastes and flavors
in the industry meeting the expectations of Indian consumers.
The Indian snack industry snack industry has major trends and developments in India over the
years. It is stable at present and has strong growth potential in future.

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4.3. Present Scenario Of Food Processing Industries In India

India is today the second largest producer of food in the world. Agriculture production has
shown a growth of about three per cent per annum, and today, India is the number one
producer of milk, and second largest producer of fruits and vegetables in the world, with a
buffer stock of over 60 million tonnes of wheat and rice. Due to poor handling of the produce,
post-harvest losses have been high, resulting in a significant gap between gross production
and the net availability of the produce to the consumer. The profits from agricultural
commodities have also greatly diminished. Since nineties, the cost of agricultural inputs has
increased faster than the market price of the outputs.
As a result, farmers are about 15-20 per cent worse off, even after taking into account the
gains in productivity. There are very few examples of successful food processing centres,
much less the agricultural clusters, not just in India but even globally. Location of food-
processing units should be strategically placed depending upon the raw material availability,
labour, product utilisation and domestic and/or export marketing.
Food processing industry is of enormous significance for India’s development because of the
vital linkages and synergies it promotes between the two pillars of our economy, industry and
agriculture. Fast growth in the food processing sector and simultaneous improvement in the
development of value chain are also of great importance to achieve favourable terms of trade
for Indian agriculture both in the domestic and the international markets. The sector however,
has to go a long way. Even important is the crucial contribution that an efficient food
processing industry could make in the nation’s food security for instance the post- harvest
losses of selected fruits and vegetables are about 25 to 30 percent in our country. Even
marginal reductions in these losses are bound to give us better returns and thereby improve
the income level of the farmers.
India has evolved from a food-scarce to a food-surplus nation during the last decade and the
ever-growing trade in the production of food commodities indicates that the industry is on
track in terms of growth and profitability. India’s USD 600 Billion food processing industry is

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expected to grow three-fold by 2020. India currently ranks second in terms of global food
production, next only to China.
India leads in the production of milk, bananas, mangoes, guavas, papayas, ginger and buffalo
meat. However, in order to realise the maximum potential of the sector, a rising concern of
wastage needs a dire attention. Hence, the development of the sector in the country will
further strengthen the link between agriculture and manufacturing by using modern food
processing technologies and cold storage techniques.
Food processing sector is indispensable for the overall development of an economy as it

provides a vital linkage and synergy between the agriculture and industry. It helps to diversify
and commercialise farming; enhance income of farmers; create markets for export of agro
foods as well as generate greater employment opportunities. Through the presence of such
industries, a wider range of food products could be sold and distributed to the distant
locations.
The term 'food processing' is mainly defined as a process of value addition to the agricultural
or horticultural produce by various methods like grading, sorting and packaging. In other
words, it is a technique of manufacturing and preserving food substances in an effective
manner with a view to enhance their shelf life; improve quality as well as make them
functionally more useful. It covers spectrum of products from sub-sectors comprising
agriculture, horticulture, plantation, animal husbandry and fisheries.
Food processing industry is one of the largest industry in India and is ranked 5th in terms of
production, consumption and export. Earlier, food processing was largely confined to the food
preservation, packaging and transportation, which mainly involved salting, curdling, drying,
pickling, etc. However, over the years, with emerging new markets and technologies, the
sector has widened its scope. It has started producing many new items like ready-to-eat food,
beverages, processed and frozen fruit and vegetable products, marine and meat products,
etc. It also includes establishment of post-harvest infrastructure for processing of various food

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items like cold storage facilities, food parks, packaging centres, value added centres,
irradiation facilities and modernised abattoir.
The food processing sector comprises of two segments- Primary processed food and Value
added food. Primary segment comprises of packaged fruit and vegetables, milk, flour, rice,
spices etc and constitutes around 62% in value terms of the processed foods. Value added
segment includes processed fruits and vegetables, juices, jam & jelly etc and holds around 38
% share in the total processed food.
In an emerging country like India, where growth with equity is a primary policy thrust, the
optimum development of the food processing sector will contribute significantly in tackling
several developmental concerns such as disguised unemployment in agriculture, rural
poverty, food security, food inflation, improved nutrition, prevention of wastage of food etc.
By serving as a bridge between agriculture and manufacturing and by dealing with a basic
need of all Indian citizens – the assured supply of healthy and affordable food at all locations
in the country, this sector has the potential to be a major driver in India‘s growth in the coming
years. In fact the food processing sector has been growing faster than the agriculture sector.
The food processing industry includes a diverse group of companies involved in the processing
of products like fish, meat, milk, crops and water. It includes millions of Small & Medium
Enterprises (SMEs) worldwide and also some of the largest companies in the world. Many of
these companies deliver products directly to consumers, while others specialize in Business-
to-Business activities (ingredients, commodity markets). Some companies directly participate
in all areas of food production, from farming activities through to final production and retail.
Others are concentrated more at the top end of the production chain or buy through
commodity markets. In fact, Food processing is one of the world‘s largest industries from the
perspective of the number of companies involved in the sector, as well as in terms of its total
economic value.

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4.4. Future Of Indian Food Industry

The food processing industry is one of the largest industries in India and is all set to soar
heights in the near future. Even, Government of India also knows the Future is too bright for
Indian food Industries, as, food has also been one of the largest segments in India’s retail
sector, which was valued at USD 490 billion in 2013. The Indian food retail market is expected
to reach USD 894.98 billion by 2020.
The food processing sector has been growing at the rate of 12 per cent annually, officials
said. The entire Indian agriculture value chain is set to change drastically and food processing
is going to be one of the main industries of the country in the future, Finance Minister Arun
Jaitley said in November 2017. And, we are feeling right as on today.
It’s only growing. A lot of western food and beverage giants are already looking to collaborate
with Indian companies for their packaged food products. Companies that manufacture full
food processing lines are also eying this part of the world. Every year when I visit the trade
shows, I see more processed food exhibitors than the previous year. And, Online food
ordering business in India is in its nascent stage, but witnessing exponential growth.
The organized food business in India, which is worth USD 48 billion, of which food delivery is
valued at USD 15 billion, has a huge potential, and hundreds of new era of food processing
will be created, by keeping these all facts.
There is too much potential for a new entrepreneur, who would like to enter in food
processing like the following:
FDI POLICY- 100 % FDI under government approval route for, trading, including through e-
Commerce for Food Products produced and manufactured in India.
FISCAL INCENTIVE- 100 % Income tax exemption to food processing, units on profits for
the first five years of operation and 25 % thereafter for the next 5 years. Pasteurizing, drying,
evaporating, etc. machinery used in Dairy Sector is exempted from Excise Duty. Excise duty

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Refrigerated containers from 12.5% to 6%. Custome duty reduction in cold storage related
items in Budget 2016-17.
MEGA FOOD PARK- Government giving grand aid up to 75% on the basis of the general area
or a difficult area to set up Mega Food Park.
SPECIAL FUND IN NABARD- To provide loans up to seven years, they have accumulated
Rs.2000 crore of the fund to NABARD for food processing units.
Above are the few examples, such hundreds of arrangements are being done by Government
to strengthen food Industries in India, thus definitely, the future is very bright.

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And not only these are the only reason, but the cause behind the bright future of Food
Industry is also:
• Growing populations and their vast demand for food
• Government policies like, ‘Make in India’, ‘Startup India’

• Increase in consumers purchasing level/Power.
• Access to all branded food materials even at the village level
• Changing lifestyle patterns
According to research by the India Brand Equity Foundation, the spending capacity of the
Indian middle class is anticipated to double by 2025. With the rise in disposable income and
access to credit, the Indian middle class will have a high spending capacity on ready to eat or
other food items, which was not the scenario before 10years.
4.5. Strategies For Success In India's Snack Food Market
4.5.1. Ravenous growth
Thanks to a growing population and rising income levels, the Indian food sector has one of the
strongest growth fundamentals of any industry. For packaged snack foods these fundamentals
are complemented by two further growth drivers; convenience and the nation’s eating habits.
With smaller families leading busier urban lives, the time and resources for regular home
cooking are rapidly declining. At the same time, longer working hours and lengthy commutes
leave less time for regular sit-down meals. Snack foods have been a long-time favourite in the
Indian diet and now packaged and branded variants of namkeen, sweets and wafers have
become the natural solution to the culinary cravings induced by the modern Indian lifestyle.
The combination of these factors is propelling the snack food sector toward a projected
compound annual growth rate of 14% from 2011 to 2015.

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4.5.2. An attractive sector for new entrants
Established snack food players like Haldirams and Pepsi Lehar have been joined by a new wave
of market entrants in recent years, attracted to the sector thanks to its high growth rate and
the relatively low level of capital required to establish production.
Amongst the new arrivals are many regional entrepreneurs who have backed themselves to
succeed based on a better understanding of India’s distinctive local tastes and delicacies.
Meanwhile, large FMCG players have bet that their brand name and marketing expertise can
extend their clout to a new product category.
Although the market is large and diverse enough to accommodate a broad range of both
existing players and new entrants, those moving into the sector need to be aware of a number
of challenges to long-term success and develop their strategies accordingly.
4.6. Key Challenges and Strategic Responses in Snacks Food

4.6.1. Challenge: Competition from above and below
Companies entering the Indian snack food market need to be braced for competition on all
fronts. Simply transposing the competitive scenario from the national level to a regional
setting could be a recipe for over-optimistic sales projections. In many areas, local producers
catering to specific regional tastes may actually be a greater threat than the leading national
brand names.
At the other end of the spectrum, the existing pan-India competition may be disrupted by
large consumer goods firms and major retailers making a foray into the snack food sector. ITC
has been the most notable example of this through its heavily promoted Bingo chip brand.
With the scope of organized retail ever expanding, private label brands such as Tasty Treats
from Big Bazaar will also pose a stiffer challenge to snack food manufacturers hoping to sell
through this increasingly important channel.

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4.6.2. Response: Develop an entry strategy based on your own strengths
Companies entering India’s snack food market should build their entry strategy around their
own key strengths to ensure they are better prepared to take on the competition. For
example, those companies starting out with a more limited product range may benefit from
launching in multiple locations in order to achieve sustainable volumes and gain sufficient
customer insights. On the other, hand those companies possessing a wide variety of products
may do well to focus on a particular region first. Allowing them to achieve penetration across
categories as well testing the more complex distribution this entails before they expand
elsewhere. In both scenarios, companies need to carry out a detailed analysis of consumer
tastes and conduct competitor mapping at the local and national level before deciding on their
preferred points of entry.
4.6.3. Challenge: Rising Input Costs
Input costs are a critical factor in the food industry and commodity prices have been rising at
record rates in recent years. In India, the vagaries of the monsoon have a major effect on the
price of snack food staples like wheat and potato, and the volatility of the Rupee creates
additional challenges for those using imported ingredients like cocoa. Furthermore, as food
accounts for a high percentage of the average Indian’s budget, even small price movements
can a have a major effect on demand.
4.7. Responses: Develop a clear pricing strategy

With global food price inflation set to persist, snack food manufacturers need robust
strategies if they are to sustain growth and protect margins to innovate lower cost alternatives
& pursue backward integration .
Firstly, snack food manufacturers need to develop a clear pricing strategy so they can respond
in a timely and effective manner to rising costs. When confronted with such a scenario they
have three possible options: increase prices, reduce pack size or keep prices the same.

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All of these options have advantages and disadvantages but manufacturers should prepare
their response according to their target customer, the response of their competitors and their
long-term strategy. For example, a mass-market potato chip manufacturer with highly price-
sensitive customers may seek to absorb lower margins to gain market share from competitors
who immediately pass on rising costs to their customer.
In addition to pricing strategies, manufacturers could develop lower cost alternatives to their
existing products to retain price-conscious customers. Due to high cocoa prices, a number of
leading Indian brands have launched biscuits with lower cost vanilla fillings rather than the
traditional chocolate in order to keep prices affordable.
Thirdly, India’s highly fragmented food chain offers plenty of scope for backward integration.
This would eliminate the margin captured by a large number of non-value-adding
intermediaries, resulting in lower input costs. Pepsi Lehar pioneered such a strategy through
contract farming in Punjab. By agreeing directly with the farmers to purchase potatoes at a
fixed price in advance, they can guarantee future supplies at stable prices. With the regulatory
environment becoming more favourable, such initiatives will become a critical factor for long-
term success in the Indian snack food market.
4.8. Challenge: Diverging Consumer Trends

In a large market like India, with such extremes in income levels and lifestyles, consumer
trends can seem to move in conflicting directions at the same time, posing a major challenge
to strategic planning. In response to a wave of media concern about rising obesity and
diabetes in recent years, leading snack food players began offering health-oriented products
advertised as low fat, low sugar and low salt. However, the market response to many of these
initiatives was less than rewarding. Marico, for example, had to withdraw its healthy baked
snack Saffola Zest after poor sales. Whilst health foods may be a growing niche, for many
Indian consumers packaged snack foods represent a new and exciting way to add some long
sought after indulgence to their daily diet. Even for those wealthier groups afflicted by lifestyle
diseases, taste still overrides health as the main determinant of their snack food choices.

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4.9. Response: Closely monitor micro as well as macro trends

Snack foods manufacturers must balance the urge to respond to prevailing trends in the
broader market place with a constant focus on their target customers. Whilst innovation is an
integral part of success in fast-moving consumer goods, if it is not driven by customer needs
it will result in alienation rather than improved brand loyalty. For example, the FMCG sector
is currently focused on consumers’ search for value in a tougher economic climate. However,
consumers of a premium snack food brand may be largely indifferent to changes in price given
the small part of their budget such purchases account for. What is more, by adopting a lower
cost positioning or offering cheaper variants, such a company could actually undermine its
value proposition to its target segment.
To counter this risk of misreading the market, snack food companies should closely monitor
the micro trends occurring within their target customer group as well as tracking the macro
trends affecting the sector as a whole. Such an approach will give companies the confidence
to take a divergent view from the competition wherever it better serves their customers.
Taking stock of the challenges in the Indian snack food sector and preparing a coherent set of
strategic responses will stand companies in good stead as they seek to exploit the growing
market opportunity and withstand the intensifying competition.

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5. MARKET STUDY
5.1. Market Potentiality

Food processing industry has an important role to play in socio-economic development
especially in improving of caloric deficiencies of people of rural as well as lower and lower
middle income group people living in urban areas. Extruded Snacks has become now-a-days
common Tiffin food for common people in every part of the country. Snacks items in the form
of bites and Tiffin due to variety of tastes & flavors and easy to digest. Therefore consumption
of this type of snack food is tremendously high. Almost in every retail counters, pan shops,
stationery shops, grocery shops, sweets & snack foods shop etc. The demand of this type of
processed food products is always prevailing in the market.
5.2. Market Scenario

Potato chips are consumed as a snack across the globe and are made by deep-frying or baking
the potato slices. Market players offer potato chips as plain, salted, and flavored. The main
preservative action in potato chips are heated during frying and the low moisture content.
The appropriate potato types used for the production of potato chips are those with a high
sugar content as they produce a golden color when fried. Introduction of several flavor
variants and high demand for convenience food are expected to drive the global potato chips
market during the forecast period. The global potato chips market is projected to grow with
a significant growth rate of 3.2% from 2019 to 2024 and reach a market value of USD 44.2
billion by the end of 2024.
5.3. Savory Snacks market in India

The Savory snacks market in India grew at a very promising CAGR of 29.04% during the period
2010-15. The market value of the high growth segment was at INR 92,686.8 million in 2010
and more than tripled to INR 331,577.7 million by 2015. It is expected that savory snacks
would continue to grow at a CAGR of 33.59% and is expected to reach INR 1,410,936.0 million

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by 2020. Ethnics and traditional snacks is the largest category in the Indian Savory Snacks
Market.
5.4. Salted Snacks-Namkeen Market Potential

There is good scope of manufacturing of salted snacks-namkeen as there is good demand of
these items. The salted snacks are used during tea and breakfast times or throughout the day
and even while serving drinks during social occasions. The salted snacks viz. dal moth, chana-
chur or Bhujia like products are well known not only in India but world wide also. Increasing
disposable incomes, a need for convenience from fast-paced lifestyles and a cultural tradition
of snacking between meals have fuelled explosive growth in this sector. From a modest 8,000
crores in 2004, the market today stands at 47,000 crores—more than six times the amount a
decade ago. Salted snacks-namkeen manufacturing project can be initiated small scale basis
with moderate capital investment.

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The Indian snack market offers around 1,000 snack items. The branded namkeen segment
consists of 40% market share of the total salted snacks market in India. The market leaders
that own all the to namkeen brands in India is Haldirams that has a market share of 41 % and
then follows Frito Lays that has a market share of 10%.
Consumptions pattern which is usually followed by the people in general. Penetration into the
ready market as competitors. Customers have some choice of various flavours and tastes.
5.5. The Branded Salty Snacks Market in India

20 years ago, snacking on chips meant the deep fried, homemade (sliced, sundried, stored)
potato chips our mothers were adept at making along with dozens of other savory snacks.
Today, all we need to do is tear open a packet of our favorite brand. Indians love ‘snacking’
and, over the past two decades, branded salty snacks have found high acceptance across large
and small cities to become the preferred choice of consumers.
The branded salty snacks market has come a long way from the 1990s, when the market was
marked by the presence of brands like Haldiram’s and Uncle Chipps (eventually acquired by
PepsiCo) and there were few other regional brands. The market registered a major leap in the
mid-90s when beverage major PepsiCo introduced Lay’s and Cheetos, and later, Kurkure.
Since then, many national and regional players have forayed into the space with diverse
offerings. Post 2005, consumer products companies ITC (Bingo) and Parle Agro (Hippo) also
entered the market, and, in 2009, Cavinkare also made inroads into the market through the
acquisition of Garden Namkeens. Several organized retailers have introduced their private
labels in this space. Global food and beverages company Del Monte has been envisaging an
Indian market entry (as per media reports).
At present, the branded salty snacks market is estimated to be worth INR 10,000 crore (USD
1.68 billion), and is projected to grow at a CAGR of 15-18% over the next few years. This
market can be broadly divided into two segments, viz.
ü Western snacks Potato chips, extruded snacks like Kurkure, etc.
ü Traditional snacks Namkeens, bhujia, daal, bhakarwadi, khakhra, banana chips, etc.

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PepsiCo leads the western snacks market, and, together with other prominent players in this
segment (ITC, Balaji, Parle Products, Prakash Snacks, and Haldiram’s), holds a share in excess
of 70% of the market. In the traditional snacks space, Haldiram’s and the regional player, Balaji
Namkeen, together account for over 50%.
The rest of the market is fragmented, and understandably so, given that the market is driven
by strong regional tastes and preferences. There are several reasons which have led to the
growth of the branded salty snacks markets. Some of these are mentioned below:
• Changing consumer lifestyles and consumption patterns: The increasing

urbanization, growth in number of double income households, and rising time poverty
has resulted in changing consumption patterns, especially in the food category. This
has fuelled the demand for convenience foods as consumers no longer have either the
knowhow or the time to make these products at home. At the same time, the spurt in
disposable incomes has resulted in the increased exploration of the various snack
brands available in the market, whether traditional or western. Consumers are also
trading up from unbranded to branded snacks, especially in the traditional snacks
segment, given the heightened concerns for quality and the greater availability of
branded options. This has resulted in branded snacks becoming an all-time food for
the munching needs of consumers.
• Growing consumer base: Snacking is not just about children or youth. Snacking
between meals is a habitual occurrence in the day-to-day lives of most Indian
consumers. Further, snacks no longer cater to a single consumer segment, but instead
have a diverse consumer appeal and are increasingly being consumed across different
age groups. Branded snacks are also fast penetrating the semi-urban and rural space
which has been traditionally dominated by unbranded or homemade products. As a
result, the market has witnessed a high growth trajectory and various new players are
foraying into the market while the existing ones are expanding to cash in on its growth
potential.
• More variants and options: There was a time when branded salty snacks were mostly
potato chips. However, players have innovated over time to offer new products like
extruded snacks besides expanding their traditional snacks offerings, e.g. Murukku,

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Chakoli, Mathri, Gathiya, Samosas, etc. which has seen several consumers upgrade
from the unbranded market to branded products. Also, given the increasing concerns
surrounding ‘unhealthy’ snacking, players have positioned brands and products
around ‘health’, e.g. baked, roasted, multigrain, low fat, etc. to reach out to the health-
conscious segments. This has helped them target a larger consumer base across the
country.
• Greater availability and affordability: Branded snacks are now easily available across
both modern and traditional retail formats, from supermarkets and mom-and-pop
stores to small tea stalls, office canteens, paanwalas, etc. Most brands are available in
multiple pack sizes including small ones at attractive price points (INR 5, 10, etc.)
leading to higher affordability and increased category presence and more product
trials.
While the branded market was created and led by western snacks, both western and
traditional snacks today hold a nearly equal share, indicating the higher growth of branded
traditional snacks. However, this does not imply that the growth has come at the cost of
western snacks; it is more due to the unbranded market being converted to a branded
traditional market. Another trend which is true for traditional snacks is that while our palates
may change every 200 km, and regional preferences are strong, there has been an increasing
democratization of preferences, and many hitherto regional snack items have found
nationwide acceptance, e.g. banana chips.
Over the past few years, the market has witnessed a slew of activities, the emergence of new
players, the expansion of snacks portfolio through continuous product innovations, aggressive
marketing campaigns to establish consumer connect, shift in consumption with increasing
demand for convenience, etc. Going forward, the prospects for the branded snacks market
remain bright. However, players will need to focus continuously on product innovation to
combat competition, both from within this category (branded as well as unbranded) as well
as from other categories. While consumers are upgrading to branded products, the
unbranded market remains huge in size. Also, there are still hundreds of traditional snack
categories for which branded options do not exist, which presents both an opportunity as well
as a threat.

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Additionally, rising health consciousness owing to sedentary lifestyles and the increasing
incidence of lifestyle diseases in urban India has resulted in a demand for ‘healthy’ snacks.
This is only expected to increase in the future and presents lucrative opportunities for both
existing as well as new players. The challenge will be to achieve the right balance of taste,
health, and price.
Distribution remains the key to any brand; the challenge for players will be to strengthen their
distribution networks and expand their retail reach. For regional brands, growing outside their
‘home turf’ and connecting with consumers in other regions will be a challenge. Players will
need to be prudent and understand the regional palate and pulse. Moreover, maintaining
product price points and margins is crucial given the fluctuations in raw material costs and the
investment in manufacturing, limiting the creation of economies of scale. Despite these
challenges, branded salty snacks will remain an attractive market opportunity in times to
come. It will be interesting to see how the competition in this market pans out over the next
few years.

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5.6. Savory Snacks – Key players in India

Pepsico India is the market leader in savory snacks in India with a share of 31%, ITC, Haldiram,
Parle together with Pepsico hold 50% of the market share in India. 2016 saw Pepsico
reorganize its Indian Snacks portfolio, streamlining its offer to two core brands Lay’s for
western salted snacks and Kurkure for traditional Indian ones. The strategy significantly
extends the range of Kurkure’s offer, with the brand moving beyond its core tedha medha
(crooked shape) extruded corn based chips into areas such as peanuts and fryed moong dal.
The reorganization involves the phasing out of Lehar, which has struggled to build its presence
in the traditional namkeen market.

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5.7. Top Namkeen Brands in India

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5.8. India Snacks Market 2018-2024:

Forecast by Snacks, Companies and Consumer Surveys - ResearchAndMarkets.com
The India Snacks Market will be more than INR 1 Billion by the end of
2024.
The future of India Snacks Market can be judged from the fact that this industry is expected
to grow with double digit CAGR for the time frame of 2018 to 2024. India snacks market is
dived between organized players and unorganized market. At present Unorganized market is
dominating the India snacks market. But this scenario is expected to change during the
forecast period of 2018-2024. India Snacks Market is growing due to following factors Lifestyle
Changes, Rising Urbanization, Growing Middle Class Population, Local Availability and
Availability of Snacks in Small Package Size, Low Price and Company's Strategies to focus on
regional taste.
The report provides a comprehensive assessment of the fast-evolving, high-growth India

snacks Market. This market research report provides information on snacks market and
market share by organized & unorganized sectors, snacks products segmentation by Extruded
Snacks, Chips, Namkeen, Others; with key companies' Business Strategies in India snacks
market. This report also identifies the key Growth Drivers and Challenges of the industry.
Primary research on consumer preferences of various snacks product segments, snacks prices
and brands captured in this report.
A consumer survey has also been done in the report on the snacks industry in India. The survey
has been done on Snacks Price Range, Extruded Snacks Brands Consumers Like to Buy Chips
Brands popular in Consumers, Namkeen Brands Consumers buying.
There is a large number of players working in the Indian snacks market. Their presence is
limited within a town, city or a particular area. They do not think too much for expansion. As
a results, their main focus to develop snacks items according to the consumers taste in a
particular area. This helps them to be popular in that region. Also their products are low priced
compared to organized players.

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Namkeen has the Highest Market Share in India Snacks Market
India snacks market is segmented into Extruded Snacks, Chips, Namkeen and Others. In terms
of market value share, Namkeen has the highest market share compared to all other segments
Extruded Snacks, Chips and Others. At present, in both organized and unorganized market,
Namkeen is the leading segment.
PepsiCo India is a Leading Player in the India Snacks Market
Pratap Snacks, Balaji Wafers, DFM Foods, Bikanervala, Haldirams and PepsiCo India are some
of the most popular snacks companies in the India organized snacks market. PepsiCo India has
the highest its market share year compared to other snacks companies present in India.
5.9. Overview of India Chips Market

Report on 2018-2023 by Region, Purchase Motives, Flavour & Company
India Chips Market Overview, 2018-2023" provides deep analysis of the India Chips snacks
market, with size in terms of both the value and volume of the chips market, and also provides
market share of different segments. The report is formed by segregating data from various
sources and various time frames.
It consists of various historical data and is based on the current situation of the market and
key factors provide a forecast based on the best suitable method. This could defiantly be
helpful in identifying the market segments which are driving growth. The report consists
profiles of leading companies and provides the market share of their brands which would be
helpful in examining market competition as well.
The Indian chips market has shown remarkable growth in the past couple of years. The market
is forecast to grow with a CAGR of more than 9% in the near future. Currently, the growing
young population (below 15 years) represents a key segment for the potato chips market.
Major factors driving the global demand of potato chips are growing urbanisation, the rise in
disposable incomes and rapidly changing lifestyles.

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A busy lifestyle coupled with long working hours have forced people to shift from elaborate
luncheons and meals to desk snacks and packaged foods. Snack companies are branching out
from original recipes and launching line extensions that deliver interesting ingredients,
flavours, and textures to consumers looking for new experiences or alternative ingredients for
health reasons. Existing players include PepsiCo, Balaji Wafers, Prataap Snacks, Haldiram, are
some leading players in Chips Category.
6. MARKETING PLAN:
6.1. Executive Summary

Launching a new product in market is a very difficult task and it requires a lot of sincere efforts
as well as analysis to be done of the industry to which that product/service belongs to. This
report has made sincere efforts in identifying what all factors are important in launching a
new namkeen brand in the Indian market. What are the factors affecting the overall market
i.e. the forces shaping it and also the market competitiveness. So this report makes an attempt
to identify whether it would be beneficial to launch namkeen or not.
As the ethnic foods category is growing, cash-rich companies make a beeline for a share of
the salty snacks market. Around 1,000 snack items are sold in India spanning various tastes,
forms, textures, aromas, bases, sizes, shapes and fillings. Some 300 types of savories sell here
and the overall snack product market (inclusive of sweetmeats) is estimated at Rs.25,000
crore.
The branded salty snacks market (size: 1200 Crores) is 40% of the total market (size: 3000
Crores), it's bustling nevertheless. The branded segment is increasing at the rate of 25% per
annum whereas the entire market is increasing at the rate of 7%. In the past 2-3years the
unbranded sector has witnessed a decline of 5% per annum.

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Indians seem to be snacking on ethnic foods with a vengeance. This is good news for the
corporate sector, given that the past few years have seen a perceptible shift towards the
branded sector at the cost of the unbranded segment.
6.2. New Product Idea and Market Opportunity

Product is the most important part of the marketing mix. It signifies what you are going to sell
to the consumer. A comprehensive analysis of the Industry and Market Survey has given us a
platform on which our product can be built. Our product will be built for the masses, and
expansion shall be gradual, to cater to the entire country’s needs. Savoury Snacks is a product,
which needs three important things:
1. Taste.
2. Quality.
3. Variation.
In the same order of significance we need to provide all three to our consumers.
Ours is a Company whose Product shall stand for something every Indian craves for. We are
entering a market already dominated by a number of branded and unbranded players.
Customers are extremely loyal to the Snacks they consume. So we thought about what would
make these customers come to us?
6.3. Market Opportunities

The average annual per capita consumption of commercial snacks is just 500g and that by
urbanites is 10 times more than that by rural consumers. This may be since most rural houses
make these at home or buy from the local vendors that come in the unorganized market.
Consumers from Western India are the leading snack consumers, followed by the North.
While the domestic ethnic snack foods industry is hugely diverse, has easy access to
indigenous technology and involves low entry barriers, standardization of product quality and

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backward links to testing facilities are at woefully low levels. Naturally, opportunity is
screaming from the rooftops.
The big question is whether branded players will edge past their unbranded counterparts?
Brand marketers say they will. Factors like hygiene and quality is steadily bringing about a
switch from unorganized to branded namkeens. One will not grow at the cost of the other
and that both categories will co-exist.
Cottage-industry-level players offer themselves as suppliers to deep-pocketed marketers. The

APEDA study states that though backroom operations dominate ethnic snacks, improper
labeling, haphazard distribution channels, storage problems and inadequate marketing
efforts take their toll. Branded players, with their quality control systems and standardized
raw material sourcing in place, can effectively weed out those problems. One differential
between branded and unorganized namkeens is that of price (roughly 25 per cent), but that's
not a perceptible bottleneck, say marketers.
An aspect that leads to quick movement of ethnic snacks is the consumption convenience or
`consume anywhere-anytime' factor. It can be had with cocktails, at teatime, as props with
regular meals like breakfast or as starters with dinner.
6.4. Margins
Consumers are willing to pay a premium for convenience shopping. Thus, the relative share
of grocers dropped. Chemist outlets on the other hand, have been expanding their product
range to include high margin FMCG products. Panwallas are also emerging as full-fledged
consumer product outlets.
With the increasing number of retail outlets, the visibility of the products in the market
increases and so does its availability. We would try to make the best of it by tapping these so
that we can penetrate further into the market and also increase our sales.

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Entire snacks being a mass product we would ideally want for our products to be virtually at
every single retail outlet. Competitors such as ITC and Frito lay who have a wide network of
distribution chain will have to be matched in order to give them a stiff competition.
Grocers, pan stores, General Stores, Food stores will be aggressively aimed at. More shelf
space and advertising on the shops will be sought to.
6.5. Pricing strategy

The price of a product in the market in an important factor influencing consumer demand.
hence to be marketable, a dairy and others fresh and processed fruits & vegetables product
must be competitively priced. This implies that the costs involved in raw material
procurement, processing, packaging, storage, marketing and distributing must be kept as low
as possible. Generally the price of a product will involve the following costs-
• Cost of raw material

• Cost of raw material collection and transportation
• Cost of processing
• Cost of packaging, marketing and distribution
• Taxes and tariffs
• Profit margins at each stage of the marketing channel (collection, processing, and
marketing margins)
6.6. Business Promotion

Promotion is one of the key elements of the marketing mix, and deals with any one or two
way communication that task place with the consumer. Deciding on a marketing
communications strategy is one of the primary roles of the marketing manager and this
process involves some key decision about who the customer is, how to contact them, and
what the massage should be. These questions can be answered using a three stage process,
which is equally relevant for all elements of the marketing of all food products.

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Advertisements in the form of both outdoor and print media so that the consumers are
informed about our product. Our outdoor campaign will be extensive and will be at all the
prime locations in metros towns and other places. They will also be put up at Trains, Stations,
Buses and Bus Stops and on the retail outlets itself. Print Ads will be published in leading
newspapers and magazines.
In India, today there are over 5 million retail outlets dispersed all over the country. Organized
retailing, which has been now gaining momentum, includes large super market chains/
shopping malls, department Stores and Food Store. While small chain stores called Apna
Bazaars and Sahakari Bhandaars, which offer products at reasonable prices-have been fairly
popular in the rural areas.
6.6.1. Advertising:
Ø We are going to give our advertisements in the form of both outdoor and print media
so that the consumers are informed about our product. Our outdoor campaign will be
extensive and will be at all the prime locations in metros towns and other places. They
will also be put up at Trains, Stations, Buses and Bus Stops and on the retail outlets
itself. Print Ads will be published in leading newspapers and magazines.
Ø Advertisement through hoardings, banner etc. Indian market is a young market so
efforts should be made to capture the youth spirit.
Ø Packaging would be designed & colorful enough so that it looks attractive specially to
the young crowd & it should be done properly with nitrogen gas & aluminum quoted
food graded plastic to avoid perishability.
Ø There will also be fliers, which would be distributed with newspapers and out side
retail outlets and railway stations.
Ø Our products would be available with the local baniyas and pan shops to reach out to
maximum people.

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6.6.2. Sales Promotion

Ø We are going to have various offers on all our products to the distributors, stockists,
and retailers and also to consumers.
Ø We will be giving 35gm packets free with the 200gm packs and an airtight jar along
with the 500gm pack as an added incentive for the customers.
Ø As far as the retailers are concerned we will be giving then higher margins and at first
paying them for the amount of shelf space we use so that they keep our product in
their shops at a good location so that all the consumers are able to notice our product
and see what its all about. We will also give them incentives for advertising in their
shop.
Ø To Stockists and Distributors we are giving higher margins than our competitors
6.7. Summery & Recommendations:

As this is a product of its own kind so there is lot of hope that this product will work in the
Indian market and capture a larger portion of the Indian market within few years of its
launching in the market. Also no such entry barriers are there in this field except some
environmental regulations imposed by the government so the entry in the market will not be
much difficult. Initial cost of launching the product will be more as huge amount will be
required in the production control, R&D, development of distribution & retail chain for the
superior quality & proper distribution, but once product will reach its growth stage it will earn
a huge profit for the company. So we can say that this product will be huge success within few
years of its launch.
Recommendations:
ü Launch this product early to gain the first mover advantage.
ü Maintain the quality standards.
ü Timely feedback from the customer about the quality of the product.
ü Proper supply chain management so that the product reaches the end customers
easily.
ü Appropriate promotional strategies.

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7. TECHNICAL STUDY – POTATO CHIPS
7.1. Manufacturing Process

The simplest chips of the kind that are just cooked and salted, but manufacturers can add a
wide variety of seasonings of herbs, spices, cheese or artificial additives. Potato wafers are
manufactured in mechanized plant under hygienic conditions for snack foods market. Fully
grown and ripe potatoes are generally received for storage at the plant in sacks. The
production process mainly comprises of the following steps:
Washing and Peeling –
The potatoes are first thoroughly washed before peeling them with the help of a peeler. They
are fed to a peeler where high speed abrasive rotating discs remove the skin. Then these
potatoes are trimmed and put in brine water for 30-35 minutes to prevent browning.
Slicing and Blanching –
Afterwards they are cut in the required sizes on slicing machine. These slices are blanched in
boiling water.
Drying and Frying –
Then the blanched potatoes are placed on drying trays which are then put in the drying
machine. Temperature of dryer is maintained in the range of 140 to 150 oF . After drying, they
are fried in edible oil to make them crisp and brown.
Packaging –
The fried potato wafers are then kept on the sieve to remove excess of oil, cooled and other
ingredients like salts, spicy mixture is sprayed as per required taste. Cooled potato wafers are
then packed in polythene bag.

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7.2. Process Flow diagram
7.3. Proposed Potato Chips Supply Chain: Food quality and safety
issues
7.3.1. Processing and quality requirements
The quality parameters set in place through the chain are driven by the buyer requirements
and specific requirements for processing. Potatoes grown in India for traditional use have high
sugar content and fewer solids. Processing requires potatoes with no sugar content and high
solids (between 15 and 20 percent). Specific requirements are met by ensuring quality
compliance at every stage, research and development, farming, storing, processing, and
packaging.

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7.3.2. Research and development thrust areas
As mentioned above, potatoes required for making chips, French fries and other fried
products must have low sugar content to avoid browning of the finished product. The sugar
content of potatoes is determined by the genotype and several pre- and post-harvest factors.
The major preharvest factors affecting sugar content are crop maturity, temperature during
growth, mineral nutrition and irrigation, while important post-harvest factors are mechanical
stresses and storage conditions. Each genotype requires an ideal pre- and post-harvest
treatment to maintain low sugar levels; any kind of stress results in sugar accumulations. As
most of the potatoes in India are used as cooking potatoes the most common variety grown
in West Bengal is Kufri Jyoti, another major variety is Kufri Chandramukhi. Chipsona I,
Chipsona II, Chipsona III, LR and Atlantic with low sugar and high solid contents have been
introduced for processing purposes.
7.3.3. Farm inputs
The company will ensures the availability of inputs to farmers working in the area under
contract. The vendor in the region ensures that the farmers falling under his or her supervision
have all the required inputs at the right time. In West Bengal, the company advises on the use
of quality inputs. If the company provides inputs then the cost is deducted when potatoes are
purchased from farmers. Seed potatoes of specific varieties for processing are provided by
the company.
7.3.4. Farm production
In order to produce a specific variety of potato and to enhance productivity the Company will
be very closely involved with its potato contract farmers. The company has employed a team
of agricultural graduates, who will work with the farmers to provide technical input and to
monitor the production of the farmers in their specified area. One technical expert deals with
approximately 100 farmers. The general practice in West Bengal is to grow the potato crop
after paddy. Early planting of potatoes leads to early harvesting of the produce, which fetches
a higher price. To produce potatoes early, farmers are recommended to go for short duration
paddy so that land is available for early potato cropping.

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7.3.5. Harvesting and packaging
“Handle potatoes like eggs, not like stones” will be the message the company agronomists be
giving farmers. This statement conveys the care taken through the post-harvest management
process. Traditionally, jute bags will be used for packaging potatoes. Instead of jute bags, the
company has propagated the use of plastic bags for packaging as it ensures better storage.
7.3.6. Grading and sorting
At the company’s unloading dock, the potatoes will be mechanically graded for size. Potatoes
that are too small for processing are separated. There is also visual inspection for damaged
potatoes. Test for sugar content is undertaken by frying a small sample from this lot. Potatoes
with high starch content will turn red on frying. Sample tests are also undertaken for solid
content. Potatoes that do not meet the requirements are rejected.
7.3.7. Storage
Critical factors in successful storage include variety, methods of culture, harvest, field curing,
temperature and humidity control, storage and sprouting inhibition. Potatoes are stored at
12°C to control conversion of starch into sugar. At this temperature potatoes can be stored
up to four months. Potatoes are also treated to limit sprouting.
7.3.8. Processing centre
The selected produce is taken to the processing plant and is subjected to washing and peeling.
Peeled potatoes are subject to metal detection and inspection for physical damages and
discoloration. Following this, the potatoes are run through rotating slicers and are subjected
to deep frying, seasoning & packaging.

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8. TECHNICAL STUDY – EXTRUDED SNACKS
8.1. Flow Chart of Extruded Snacks
8.2. Process control

It is the established fact that until a proper process control is observed, the quality of finished
goods may not be up to mark in spite of good quality raw materials are used. Therefore the
said unit will be carrying out following process control to get the product of acceptable quality.
i) Mills will be used only after sifting to get rid of undesirable foreign particles.
ii) Before use every raw materials would be checked thoroughly in quality & weight,
iii) Chemicals & preservatives would be used in permissible limits.
iv) Process control at the time of mixing & extrusion, drying would be maintained in
terms of time, speed, and temperature PH and RH etc.
v) Proper drying parameters would be observed at the time of roasting
vi) The wafers shall be packed after proper cooling.

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8.3. Description of the extruded corn rings manufacturing process:
• Procurement of Corn & rice girts from the market.

• Then corn & rice girts are mixing with water and making a lump in the mixer
machine.
• The said lump of corn & rice girts are pouring in the hopper of the extrusion
machine. Its forming rings with the help of air and high pressure. Where corn mix is
forming rings with bigger shape due to high puffiness.
• Roasting/cooking the extruded rings puff to evaporate the moisture.
• To get the delicious taste & flavor, to add different spices externally.
• After adding spices to packing the rice puff at good quality packaging material to
store the product for long time.
• Here, Rings puff product are basically a modified corn & rice starch. By using
technology, deforming and making delicious by adding different spices &
condiments.
8.4. Benefits in the Extrusion systems:

ü Low Capital Investment
ü Many Shape Possibilities
ü Many Raw Material and Filling Combinations Possible
ü All Stainless Steel Construction
ü Easy Cleaning
ü Robust Construction

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8.5. List of Machinery, Equipment with Specifications & operation:
Sl. No. DESCRIPTION

1. Dry Mixer
Batch Capacity 50 Kg. Manufactured From material SS-316, fitted with 3
HP Reduction Geared Motor
2. Twin Screw Extruder
For the extrusion of food products, Screw Dia 55 mm. Capacity : 100 Kg/hr.
fitted with 35 K.W. DC Motor, DC Drive 35 K.W. Vertical Dosing, Side Face
Cutter, Water Metering Pump etc.
3. Toaster
For dehydration to maintain moisture level. Auto
4. Frying unit
For auto frying.
5. Coating Tumblers / Spice Mixer (Coating tumblers are specially designed
to apply seasoning to your bake or fry type product in a uniform manner)
6. Auto Packing Machine
(Nitrogen Filled System) for packing of extruded food products, capacity 15
gm to 50 gm. Complete with accessories.
7. Dehydration system
For converting raw vegetables into powder For processing of Potato,
Tomato, Chilies, Peas, Onions, Gingers etc. Capacity 100 Kg./lir. complete
with electrical.

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9. TECHNICAL STUDY – PALLET FRIED SNACKS
9.1. Flow Chart of Pallet Fried Snacks
Feeding (2D & 3D Pallet)
Vibro Separator
Frying
Deoiling
Seasoning
Packing

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9.2. Pallet fried snacks production line
9.2.1. Vibratory feeder with hopper:
Vibratory feeder with buffer hopper to feed raw material into frying system, for separating
fine extraneous material through sieving system. Hopper volume: 275 liters
9.2.2. Continuous frying system with heat exchanger
Complete system consists of frying section and peddles, sub merger belt, top hood, takeout
belt, oil filter, heat exchanger. The flow of oil ensures a linear flow of oil, which is necessary
in order to have a uniform frying time for the entire product. Heat Exchanger It is coil type-
seamless stainless steel tubes fitted in ms shell, the oil is heated by hot air not direct flame in
coils which has an inlet system from one end and heated oil will be coming out from other
end and will go to the fryer. Whole burnt fuel used in this system that gives more than 55%
saving in fuel.
9.2.3. De-oiling conveyor
The conveyor receives pellets from fryer and transports it to further process. It allows the
product temperature to come to equilibrium and thus removing excess surface oil, belt speed
regulation by VFD. Entire construction is of stainless steel except for the standard parts. The
feeder receives fried pellets from takeout belt and feed to the flavoring drum the feeding
speed can be controlled by a VFD. A tray is also fitted on the top of the feeder where dry flavor
falls from the applicator.

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9.2.4. Flavor applicator and drum
Technical Specification of flavor applicator and drum Applicator motor: 1 HP 3 phase Drum
length: 1500 mm Drum diameter: 800 mm Drum motor: 1 HP 3 phase
9.2.5. Control panel
The electrical control panel is hub of all starters, temperature control and variable frequency
drives for operation of equipment’s. Technical specification of control panel Supply voltage: -
415 volts, 50 Hz, 4 wire. Technical specification of pellet fryer Required space: 30 x 15 feet
Fuel: Diesel/Kerosene, Gas, Thrermic fluid or wood Material of construction: AISS-304 grade
stainless steel.
10. RAW MATERIAL STUDY
The main raw material for the project is potato, corn & rice girts. India is a major producer of
potato with a yearly production of around 53 million tonnes and rank Second in global potato
production after China. Uttar Pradesh is the largest producer of potatoes in India with about
150 lac tons production in 2018-19.The other major producers are West Bengal, Bihar,
Punjab, MP, Gujarat and Assam. Uttar Pradesh, West Bengal and Bihar account for more than
80% of total production.
There are two major cropping seasons in India – kharif, during the south-west
monsoon(June/July through September October), when agricultural production takes place
both in rain fed areas and irrigated land. The other season is Rabi, during the winter, when
agricultural activities take place only in irrigated areas. About 80% of the crop is raised during
winter season.
With phenomenal increase in potato production in the last 10 years, recurring gluts have
become common in the country. Prices crash drastically during harvesting months leading to

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panic sale by farmers and in turn leading to monetary losses. Potato growers and traders
hoard the commodity after harvesting to facilitate uniform availability of the crop throughout
the year in the market and to realize better prices. Potato can be kept in cold storages without
spoiling for 5-6 months.
10.1. India’s potato production maps
Figure 1: State-Wise Potato Production In The Country
Potato varieties suited to the country's climate - hot summers and short winters - are
grown on the Indo-Gangetic plain during the short winter days from October to March,
while some year-round production takes place in relatively high altitude areas in the
south.

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10.2. State-Wise Potato Production In The Country

(Production in ‘000 Tonnes)
Five year Average

2017-18 2018-19 (2nd A.E.)
STATE/UTs (2013-14 to 2017-18)
Production % Share Production % Share Production % Share
Uttar Pradesh 14727.68 31.62 15555.53 30.32 15323.55 28.93
West Bengal 10663.82 22.89 12782.50 24.91 13783.00 26.03
Bihar 6669.11 14.32 7740.79 15.09 7922.56 14.96
Gujarat 3277.12 7.04 3806.95 7.42 3312.13 6.25
Madhya Pradesh 3027.43 6.50 3144.64 6.13 3266.24 6.17
Punjab 2366.17 5.08 2571.04 5.01 2716.33 5.13
Haryana 813.49 1.75 897.58 1.75 1227.28 2.32
Assam 988.45 2.12 720.97 1.41 1116.57 2.11
Jharkhand 659.73 1.42 690.23 1.35 692.35 1.31
Chhattisgarh 635.07 1.36 694.61 1.35 673.79 1.27
Maharashtra 323.61 0.69 259.22 0.51 516.17 0.97
Uttrakhand 388.58 0.83 362.16 0.71 362.22 0.68
Karnataka 520.28 1.12 509.48 0.99 360.18 0.68
Rajasthan 201.19 0.43 278.52 0.54 310.00 0.59
Odisha 279.53 0.60 298.06 0.58 294.18 0.56
Jammu & Kashmir 124.56 0.27 110.24 0.21 197.87 0.37
Himachal Pradesh 214.18 0.46 198.66 0.39 197.72 0.37
Meghalaya 187.75 0.40 187.95 0.37 187.21 0.35
Tripura 145.98 0.31 144.53 0.28 149.05 0.28
Sikkim 59.34 0.13 89.91 0.18 90.81 0.17
Andhra Pradesh 50.25 0.11 68.29 0.13 68.29 0.13
Tamil Nadu 95.76 0.21 67.66 0.13 65.50 0.12
Nagaland 64.35 0.14 65.02 0.13 65.02 0.12
Telangana 70.31 0.15 42.44 0.08 35.63 0.07
Kerala 8.13 0.02 7.50 0.01 7.30 0.01
Mizoram 1.56 0.00 0.93 0.00 0.93 0.00
Arunachal Pradesh 2.83 0.01 0.00 0.00 0.44 0.00
Others 14.69 0.03 14.61 0.03 17.05 0.03
TOTAL 46580.93 100.00 51310.01 100.00 52959.36 100.00
Source: State Departments of Horticulture & Agriculture

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10.3. All India monthly arrivals of Potato

Arrivals in '000 Tonnes
Month All India Arrivals
Five Year Average (2013-2017) 2018 2019
January 1292.53 1260.89 1276.65
February 1084.24 1077.66 1024.44
March 1330.47 1774.63 1234.50
April 997.73 823.02 935.15
May 895.66 801.90 867.66
June 797.61 703.86 864.48
July 808.03 717.53 959.60
August 811.65 783.44
September 830.56 814.53
October 820.51 963.87
November 866.32 901.08
December 1144.42 1166.23
10.4. Station & variety wise area (ha) and production (qtls) in
Conventional system 2017-18 (Plains) in West Bengal
Stage-I Stage-II Stage-III Stage-IV Total
Variety
Area Production Area Production Area Production Area Production Area Production
Kufri
0.11 5.95 0.22 32.00 1.11 114.50 2.65 287.40 4.09 439.85
Chandramukhi
Kufri Jyoti 0.14 11.15 0.44 50.00 1.48 206.00 5.63 802.00 7.69 1069.15
Kufri Sindhuri 0.19 7.83 0.50 78.00 2.25 392.00 11.18 1296.50 14.12 1774.33
Kufri Lauvkar 0.09 6.40 0.22 25.40 0.38 47.00 1.83 251.50 2.52 330.3
Kufri Chipsona-I 0.05 6.52 0.39 56.00 0.92 176.50 3.63 730.62 4.99 969.64
Kufri Chipsona-3 0.07 3.27 0.36 56.00 0.88 64.00 1.92 292.25 3.23 415.52
Kufri Surya 0.08 8.15 0.19 30.40 - - - - 0.27 38.55
Total 0.73 49.27 2.32 327.80 7.02 1000.00 26.84 3660.27 36.91 5037.34

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10.5. Potato Contract farming status in West Bengal

The supply chain developed by Pepsico’s Frito Lay so as to purchase potatoes that are suitable
for processing into chips. Frito Lay in India supplies potatoes from small landholders. Because
the quality requirements of Frito Lay for process-grade potatoes are very strict, the company
has set up a network of agronomists and partnerships with other public and private service
providers to help smallholder farmers produce potatoes that are suitable for processing. The
service network that Frito Lay has organized for its suppliers contributes to reducing the risks
faced by farmers. The production margins of potato farmers under contract with Frito Lay are
also higher than those of farmers selling their potatoes to the traditional market. These are
elements that contribute to retaining farmers from defaulting on their supply contract with
Frito Lay despite the lack of enforcement mechanism for these contracts. This case study is
also an organizational model of a private-public partnership to allow small farmers to link
sustainably with a large agribusiness.
Bengal is reportedly the largest supplier of potatoes to Frito-Lay's India operations. According
to West Bengal Cold Storage Association (WBCSA), the company nearly doubled its
procurement from the State to 120,000 tonnes in 2018-19.
The major chips variety potato are available in Burdwan, Birbhum, Hooghly, Bankura and
Midnapore (West) districts in West Bengal. “Owing to good growth, our potato requirement
has been growing rapidly.

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11. QUALITY CONTROL STUDY
Quality is one of important aspects in food processing industry to make the food popularize.
So quality control system should be developed in food processing unit to manufacture best
quality products. In the said unit quality control system should be consisting of checking of
raw materials, process control and ultimately checking of finished goods.
11.1. Quality Norms

ü Preventing breakage must be a primary goal of the producer and to ensure minimum
breakage companies should install safeguards at various points of the production
process
ü The color is compared to charts that show acceptable chip colors across the processed
food industry norms
ü The quality inspectors should also check the chips for salt, seasoning, moisture, color,
and overall flavor.
11.1.1. Product testing laboratory (quality control)
• Food analysis laboratory

• Microbiology laboratory
11.2. Quality Control Process of Potato Chips

Preventing breakage must be a primary goal of the producer and to ensure minimum
breakage companies should install safeguards at various points of the production process .
The color is compared to charts that show acceptable chip colors across the processed food
industry norms .
The quality inspectors should also check the chips for salt, seasoning, moisture, color, and
overall flavor.

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11.2.1. Process relative Defects of PC product:
Priority Defect type Definition

1. Soft centre A raw or under cooked area that will bend (not break)
when the chip is folded over.
2. Cluster More than one chip welded together.
3. oil soaks Chips with dark, oily or transuicent appearance over
greater than 50% of the chips surface area.
4. Dark flakes Chips which contain four or more flakes of potatoes
related material such as peel or starch on the surface
of the chips.
5. Blisters One or more separation of layers which in
combination, cover more than 50% of the chip surface
area.
6. Excess peel Peel on the edge of chip greater than ¾ inch in length.
7. Fold over Chips which are folded until the ends touch.
11.2.2. Different types of defects found in potato chips:
Priority Defect type color location

1. Undesirable color Brown or equal to as darker Any where on the chip
the approved color limit.
2. Greening Green Any where on the chip
3. Internal Brown or equal to as darker Not touching edge of chip
discoloration the approved color limit.
4. External Brown or equal to as darker Touching edge of chip.
discoloration the approved color limit.
11.2.3. Different types of potato chip breakages:
Priority Name of the chip Definition

1. Complete chip Perimeter of the chip remain intact
2. Partial chip A broken chip that has a surface area greater than
or equal to (5/4 x 5/4) inch2
3. Scrap A broken chip that has a surface area less than
(5/4 x 5/4) inch2 .

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12. NUTRITIONAL SIGNIFICANCE

Snack foods frequently receive criticism due to their high levels of salt, sugar, and fat. They
are seen to be nutritionally damaging when eaten regularly in place of a traditional food.
Snack foods, however, can be very nutritious when made from fruits, pulses, or cereals. It
should also be pointed out that the consumption of snack foods does not necessarily lead to
health problems such as obesity, but the cause is rather an unbalanced diet with excess fat,
sugar, and salt. Therefore, if these food products are part of a wider diet, they can be an
important source of fats and energy, particularly for the poorer sectors of society whose diet
may be lacking in these nutrients.
Often, it is cheaper to purchase snack foods than it is to make a meal at home. This is likely to
be one of the reasons why poor people are relying more and more on such products.
Nutrition Facts
Serving Size 100 g
Amount Per Serving

384
Calories
% Daily Value *
Total Fat 3.1g 4%
Saturated Fat 0.5g 2%
Sodium 288mg 13 %
Total Carbohydrate 80g 29 %
Dietary Fiber 2.9g 10 %
Sugar 0.7g
Protein 9.7g 19 %
Vitamin D 0.00mcg 0%
Calcium 9.00mg 1%
Iron 1.87mg 10 %
Potassium 327mg 7%
* The % Daily Value (DV) tells you how much a nutrient in a serving of food contribute to
a daily diet. 2,000 calories a day is used for general nutrition advice.

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13. LAND & LOCATION
The project will be located at Panagarh Industrial Park, Panagarh Industrial Park at Panagarh,
West Burdwan. West Bengal Industrial Development Corporation Limited (WBIDC) is setting
up a modern Industrial Park over 1458 acres at Panagarh in Burdwan district. Panagarh-Kanksa
belt is a favorable destination for industries due to the availability of industrial infrastructure
and climate. Recently Panagarh is emerging as one of the finest places of technical education.
Already 2 major engineering and management Institutes (DIATM & AIEM) are running under
the belt of Panagarh. Both the Indian Army and Air Force have their establishment at
Panagarh. An airport is also located here which is extensively used by Indian Air Force. It is
well connected with road and railway. Sufficient power is available for the prospective
industries at the park. The Industrial Park is located on NH 2 and is about 150 Kms away from
Kolkata with composite facilities for food processing industries.
13.1. Details of the Panagarh Industrial park
• The industrial park is spread over 1458 acres of land under Ausgram-II, Galsi-I and
Kanksa block.
• The project site is well connected by roads with Kolkata, the state's capital, located
approximately 150 km in south-east direction.
• The site is bounded by National Highway No: 2 connecting it to the Delhi. Site is also
connected with NH - 34 and Panagarh-Moregram State Highway.
• The park is well connected by railways. The nearest railway station is Panagarah at 0.8
Km from site.
• The park is very close to the Durgapur industrial zone.
• Nearest Airport - Kazi Najril Islam Airport.
• DVC canal is passing through the site.
• The anchor unit of the park M/s. Matix Fertilizers & Chemicals Ltd. has set up their unit
in the park in approximately 500 acres of land.
• All prospective investors are entitled to incentives available as per West Bengal
Incentive Scheme.

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13.2. Facilities at the Panagarh Industrial park
Roads: All the plots within the park will be connected through arterial roads of 30 m, 24 m
and internal roads of 18 m, 15 m width. The construction of road is under progress.
Drainage: Construction of drainage along both sides of arterial and internal roads in progress.
Power Sub-stations: WBIDC has handed over two plots to WBSEDCL for setting up of 132 KV
Substations (One Substation is operational and other in process) and one plot to WBSETCL for
setting up of 220/132 KV Substation. Power tariff will be as per the existing tariff plans.
Water supply: PHE Dt. Has been entrusted for construction of WTP and Pipeline for Supply of
Industrial and potable water from Durgapur Barrage. It will require 3 years to complete the
work. Till that time Ground water can be used with the approval of appropriate authority till
surface water is made available.
Other facilities: WBIDC has already provided the Street Lighting Facility to the entire Park.
.Now, WBIDC is in process of construction of Truck Terminal (3 nos.) , CFB Building, Fuel
Station etc.
A number of big industries have come up in the Panagarh Industrial Park. Some well-known
companies like M/s Matix Fertilizers & Chemicals Ltd.., M/s. H&R Johnson (India), M/s. Emami
Cements Limited, HPCL, Globus Spirit Ltd., IOCL etc have already set up their manufacturing
units in the park.
Briny Food products are planning to acquired 2 acre lease hold plot from WBIDC for the
project. Power and water will be available from the facilities created for the Food Park.
A two storied RCC building or a PEB shed will be constructed with an area of 60000 sq.ft to
house the plant facilities and storage raw materials, process stocks and finished goods. As per

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plant layout, main plant and machinery will be housed in the ground floor and auxiliary
facilities will be located on the first floor. The company has engaged experienced civil
contractor with good track record for civil engineering and site construction.
14. PROJECT MISCELLANEOUS
14.1. Employment Opportunity

The proposed unit of manufacturing of Potato chips & different fried and extruded snacks will
provide Direct Employment in the unit from local area and outside also. The proposed unit
requires skilled staff as well as un-skilled labour, workers. So the proposed unit must have a
little contribution in solving the vast unemployment problem in our state.
14.2. Technical Know-How

All the process is easy and simple. It requires no such special knowledge and technological
know-how to produce different namkeen & salty snacks from corresponding raw materials.
As almost all the products are fried food items, the only thing that is essentially required are
its quality and standards. Only good quality of raw material can produce good quality of
product.
14.3. Plant & machinery

Plant and machinery has been selected by the company with the help of technical persons in
the group companies and leading equipment supplier of food processing industry. The
company has also consulted experts in the industry in selection of plant and machinery for
the project. The company has selected Heat and Control, Australia for supply of potato chip
frying system , the main section of the project to ensure modern technology ,productivity and
product quality. Heat & Control is reported to have supplied main plant and machinery to
all chip plants of Fritto Lay in various countries. Apart from the main chip plant, slicer, packing
machine, extrusion and other frying system will be procured from reputed suppliers. The
suppliers will supervise the erection and commissioning of the machinery .Other machines
and conveyor systems etc will be purchased from reputed indigenous suppliers.

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14.4. Power & other utilities

Requirement of power is estimated at about 300 KW. The Company would approach
WBSEDCL for supply of necessary power for the project. Power will be drawn from the
distribution line laid by WBSEDCL for the Industrial Park.
Requirement of water will be met from the industrial Park Supply available to the site.
Requirement of nitrogen gas will be met from the Nitrogen generator installed by the
Company
14.5. Energy Conservation

Proper insulation reduces the heat loss in fryer, Oven and all the thermic fluid pipe line
14.6. Pollution Control & Environmental Aspect

The waste water discharged from the plant will be contaminated due to presence of dissolved
gases and chemicals and needs to be treated before discharge. Company will install effluent
treatment plant for treating the waste water to ensure permissible level of biochemical
oxygen demand and chemical oxygen demand as per PCB norms.
14.6.1. Source of Waste water
The effluent from various sources will be accumulated and drained into a common
Equalization Tank. The effluent enters the Inlet Channel where Bar screens will be provided
to screen out the larger, non-biodegradable suspended solids. These screenings will be
periodically disposed of into the Sludge Drying Beds. From the Inlet channel the raw effluent
will flow into an underground Equalization Tank where it will be retained for some time before
being pumped to the Aeration Tank. An Effluent Transfer Pump of appropriate capacity will
be used for the purpose. There will be provision of aeration in the Equalization Tank to
maintain homogeneity and prevent formation of septic conditions.

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In view of the high organic load of the effluent Dual- stage Aeration has been considered as
the mode of biological treatment. The effluent first enters the Aeration Tank -1 (AT-1). In the
Aeration Tank biological oxidation of dissolved and fine suspended organic matter takes place
in the presence of oxygen which will result in the lowering of BOD (Biological Oxygen demand)
and COD (Chemical Oxygen Demand). Air Blowers with diffuser grid network will be employed
to supply adequate air in the Aeration tank. As need be bacterial culture and food
supplements will be added.
14.6.2. Technical specification of ETP
The ETP has been designed based on the following Raw Effluent Quality. We presume this
composition will remain fairly constant throughout the year and any variation in the
composition will reflect on the quality of the output of the plant.
S. No. Parameter Inlet Outlet

1. pH 6.5–8.0 6.5-8.0
2. TSS 200-300mg/l < 100mg/l
3. TDS 550-750mg/l -
4. BOD 1200mg/l ≤ 20mg/l
5. COD 2000mg/l <100mg/l
14.6.3. Treatment Scheme:
The Aeration Tank-1 will be followed by Secondary Settling Tank -1 (SST -1) where the
suspended solid particles and the excess biomass settles out as sludge by virtue of gravity.
Square tube modules will be provided for faster settling. From the SST-1 the supernatant then
flows into the Aeration Tank -2 (AT-2) followed by Secondary Settling Tank -2(SST-2).
A portion of the settled sludge, known as ‘Activated Sludge’, from the SST -1 will be
recirculated back to AT -1 and similarly from SST -2 to AT-2 for seeding purposes and to
maintain the desired MLSS levels. Sludge Recirculation Pumps of suitable capacities will be
used for the purpose.

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The treated effluent from SST-2 will then be collected in a Chlorine Contact Chamber. Here
Hypochlorite will be dosed for the purpose of disinfection with the aid of a dosing pump. After
disinfection the treated effluent can be safely discharged to drains.
The screenings accumulated in the Bar Screen Chamber, along with the excess settled sludge
from both the Secondary Settling Tanks tank will be pumped out to Sludge Holding Tank from
where it will be pumped to Filter Press for dewatering. The filtrate will be discharged to drains
whereas the sludge cakes can either be used as manure after proper conditioning or must be
disposed off in secured landfills. Alternatively, the sludge can be taken to Sludge Drying Beds
for sun drying and dewatering.

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14.7. Proposed Water Treatment Plant In The Food Processing

Centre
Treatment process: Softner system with Oxidation chamber, Iron Removal filter, Activated
carbon filter, water softner
Design capacity : 10 m3/hr
Design Basis:
The proposed WTP has been designed based on the following Raw Water Quality. We
presume this composition will remain fairly constant throughout the year and any variation in
the composition will reflect on the quality of the output of the plant.
Parameters Inlet Outlet

pH 6.8 – 7.3 6.5 – 7.5
TSS 10-20 mg/l ≤ 10 mg/l
Hardness 250 mg/l ≤ 10 mg/l
Iron 0.5 mg/l ≤ 0.3 mg/l
14.8. Implementation Schedule

BFP are planning to acquire the land from WBIDC and commenced civil construction
afterword’s. The company will completed building civil construction during 6 months period.
The company will finalized the suppliers of plant & machinery and placed order for some
machines and in the process of ordering the balance machines as per the below
implementation schedule. The plant and machinery are expected to be delivered by 4-5
months in phases from release the work order. Allowing erection, commissioning and trial
runs for the plant, commercial production is expected to commence within 10 months from
starting of the project.

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IMPLEMENTATION SCHEDULE:
Project implementation will take a period of 10 months. Break-up of the activities and relative time for each activity is shown below:
Sr.
Item Month-1 Month-2 Month-3 Month-4 Month-5 Month-6 Month-7 Month-8 Month-9 Month-10
No
W-1 W-2 W-3 W-4 W-1 W-2 W-3 W-4 W-1 W-2 W-3 W-4 W-1 W-2 W-3 W-4 W-1 W-2 W-3 W-4 W-1 W-2 W-3 W-4 W-1 W-2 W-3 W-4 W-1 W-2 W-3 W-4 W-1 W-2 W-3 W-4 W-1 W-2 W-3 W-4
1 Land Acquisition from WBIDC X X X X
Provisional registration certificate & NOC from

1 X X X X
different Govt. Body
2 Bank loan fro Financial Institutions X X X X X X
3 Building Construction X X X X X X X X X X X X X X X X X X X X
4 Plant & Machinery order X X X X X X
5 Electrification X X X X X X X X
6 Installation & Commissioning X X X X X X X X
7 Manpower recruitment X X X X X X X X X X X X
8 Sourcing of raw material & other consumables X X X X X X X X X
9 Set up of distribution chain for sales X X X X X X X X
10 Trial production X X X
11 Commercial production X
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14.9. SWOT Analysis
Following is the SWOT analysis of the food processing industry in India:

Strengths:
• It is located at just above the National Highway (NH-2) in the industrial park.
• Abundant availability of raw material.
• Presence of all required Infrastructure like Roads, Drainage, Water, Electricity,
Transportation, etc.
• Priority sector status for agro-processing given by the central Government
• Large pools of expertise associated with this company as well as skilled human resource
available in the District.
• Vast domestic market.
Weaknesses:
• The factory location is far from Kolkata.
• Competition from existing unorganized sectors in local vicinity and also low awareness/
popularity amongst the consumer’s attitudes.
• High requirement of working capital.
• Inadequately developed linkages between R&D labs and industry.
• Seasonality of raw material.
Opportunities
• Large crop and material base offering a vast potential for agro processing activities.
• Favorable climate for the processing & preservation of snacks products.
• Various Incentives available for manufacturing sector as per West Bengal Incentives
Scheme 2020 and MOFPI.
• Huge scope of value addition of surplus produce
• Rising income levels and changing consumption patterns.
• Favourable demographic profile and changing lifestyles.
Threats
• Slow growth of Infrastructure links
• Uncertainty in external trade scenario & natural calamity
• High inventory carrying cost
• High taxation
• High packaging cost

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14.10. Suggested Capacity of the Project

Potato Chips & different extruded and fried snacks items will be marketed majorly in the
consumer packing of Rs. 5/-. The capacity is estimated as under:
CAPACITY in Kg/hr Quantity Grammage (gm)

ITEM
(at 100% Utilization) Per 5/- Rs. pouch
Potato Chips 300 13.00
Pallet fried snacks 300 16.00
Extruded snacks 200 18.00
14.11. Infrastructure Required
The main Infrastructural facilities required are:
I. Covered Shed Area 32000 sq. ft.
II. Power requirement 300 kw.
III. Water (Required every working day) 60000 ltrs/day.
IV. Internal Road area 6500 sqft
V. Others Utility covered area 20000 sqft

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APPENDIX A FINANCIAL EVALUATION
A.1 BASIS AND PRESUMPTION
• The unit will work for 300 days per annum on 25 days per month basis.
• The Unit will run one shift (8hrs) basis for first, 2nd year as 2 shift and from 3rd year
onwards will run three shift basis.
• The unit can achieve 1st year on 60%, 2nd year on 70% and 3rd Year onwards on 80%
capacity utilization during the operation.
• The wages for workers are taken as per prevailing rates in this type of industry.
• Interest rate for total capital investment is calculated @ 9% per annum.
• The entrepreneur is expected to raise 10-15% of the capital as margin money.
• The unit would construct its own building.
• Costs of machinery are based on average prices of machinery manufacturers.
A.1.1 RAW MATERIAL & PACKING MATERIAL PRICE
The raw material prices have taken as per current market price and as follows in the following
table:
ITEM RATE PER KG (RS.)
Raw Potato 12
Edible oil 75
Seasoning for potato Chips 200
Raw Pallet 40
Seasoning for pallet fried snacks 180
Corn Girts 25
Flexible laminate as primary packing material 220
Carton Cost as secondary packaging for Potato Chips 26
Carton Cost as secondary packaging for Pallet fried snacks 30
Carton Cost as secondary packaging for Extruded snacks 30

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A.2 Details Of Fixed Assets

(All the Cost have been taken as Rs. In Lacs)
A.2.1 LAND AND ANCILLARY ASSETS
Cost per Total
A.1 LAND Decimals Dec Cost Cost
Cost of Land as per Title Deed
Registered on 200 0.60 120.00
TOTAL LAND COST 120.00
Cost per Total

A.2 LAND DEVELOPMENT Decimals Dec Cost Cost
Cost of Land Development 200 0.10 20.00 20.00
Total
A.3 BOUNDARY WALL RMT Cost/RMT Cost Cost
Wire fencing with pre cast RCC
piller & Slab 400 0.025 10.00 10.00
Total
A.4 MAIN GATE NO RMT Cost/RMT Cost Cost
One Main Gate of MS Sheets with
MS Angles and Solid Bars 1 4 0.25 1.00 1.00
INTERNAL ROAD & DRAINAGE Total

A.5 SYSTEM RMT Cost/RMT Cost Cost
6m broad Internal Roads of RCC
construction 100 0.20 20.00
Drainage 250 0.02 3.75
Swerage 50 0.03 1.43
TOTAL COST 25.18 25.18
TOTAL LAND & LAND

DEVELOPMENT COST 176.18

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A.2.2 OTHER CIVIL CONSTRUCTIONS

B.1 FACTORY SHED NO Area Cost Cost Total
(Sqm) /sq Cost
meter
Factory shed with RCC foundation, Structural
Building, Door, Window & floor finishing -
MS Structure and 60 mm thick wall panel 1 3000
0.06 180.00
& 30 mm thick roof panel
TOTAL COST OF PACK HOUSE

180.00
B.2 ADMINISTRATIVE OFFICE NO Area Cost/ Cost Total

(Sq. area Cost
mt)
Administrative office with RCC foundation, MS 1 150

Structure and 60 mm thick wall panel, & 30 0.24 36.00 36.00
mm thick roof panel, flooring, door, windows
etc
TOTAL BUILDING COST

216.00

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A.2.3 PLANT & MACHINERY
C.1 PLANT & MACHINERY FOR POTATO CHIPS PLANT (300KG/HR)

Total
Item NO Capacity Rate Cost Cost
Potato chips processing line with
washing, peeling, frying & seasoning 1 300 KG/HR 139.20 139.20
Potato chips slicing system with 2
cutting heads 1 300 KG/HR 44.00 44.00
Packaging machine 4
34.50 138.00
Platform for 5 nos. packing machine 4 1.50 6.00

Z type bucket elevator (Conveying) 1
system with vibratory feeder & 8.25 8.25
Hopper - For 5 Machine
Spiral/Zigzag Rejection Mechanism 1
3.50 3.50
Electromagnetic Cross Feeder 4 1.90 7.60
Take up Conveyor 4 0.85 3.40
TTO Printer 4 1.50 6.00
Sub Total 355.95
Packing & Forwarding charges -
Freight 7.12
GST 65.35
SUB TOTAL C.1 428.42 428.42

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C.2 PLANT & MACHINERY FOR PALLET FRYED LINE (300KG/HR)

Total
Pallet fryed line with feeding, frying
& seasoning 1 300 KG/HR 31.50 31.50
Packaging machine 3
17.50 52.50
Platform for 5 nos. packing machine 3 0.75 2.25

Z type bucket elevator (Conveying) 1
system with vibratory feeder & 8.25 8.25
Hopper - For 5 Machine
Spiral/Zigzag Rejection Mechanism 1
2.50 2.50
Electromagnetic Cross Feeder 3 1.90 5.70
Take up Conveyor 3 0.85 2.55
TTO Printer 3 1.50 4.50
Sub Total 109.75
Packing & Forwarding charges 3.29
Freight 3.29
GST 20.94
SUB TOTAL C.2 137.28 137.28
C.3 PLANT & MACHINERY FOR EXTRUDED SNACKS LINE (200KG/HR)

Total
Extruded corn rings line with
extrusion, roasting & seasoning 1 200 KG/HR 36.85 36.85
Sub Total 36.85
Installation charges 73.70
Freight 2.21
GST 14.06
SUB TOTAL C.3 92.18 92.18

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C.4 UTILITY MACHINERIES

ITEMS NO Capacity Rate Cost Total
Cost
Thermic Fluid Heater 20 lac Kcal
1 20.00 20.00
Thermic fluid Pipe line network, 5KLPH,35MWC
Furnace & other misc equipment 1 30.00 30.00
Edible Oil Tank 20 KL
2 8.00 16.00
Air Compressor & N2 Plant 30 Nm3/hr
1 20.00 20.00
Airpipe Line
1 6.00 6.00
Water Treatment Plant 10 KLPH
1 7.50 7.50
watewr pump + Pipe line
1 3.00 3.00
Effluent Treatment Plant
1 30.00 30.00
Ventilation & Dehumidifier
1 15.00 15.00
Erection & Commissioning of all the
above 1 19.50 19.50
Sub Total 1 19.38 19.38
Packing & Forwarding charges -
Freight 5.59
GST 3.73
TOTAL COST 195.69 195.69

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C.5 ELECTRICAL SUBSTATION

Total
ITEMS KVA Cost per KVA Rate Cost Cost
Supply & Erection of One Electrical
Substation 1 300 0.06 18.00
Government Fees 1 200 0.04 7.00

Electrical LT Cable laying , control
panel and distribution to indivodual
plant & Machinery 1 22.00 22.00
DG Sets 60 KVA - 1 nos
1 7.50 7.50
Sub Total 47.00
Freight 2.35
GST 9.56
TOTAL COST 62.67 62.67
TOTAL PLANT & MACHINERY COST

(before discount) 916.24
Discount (@10%) 91.62
TOTAL PLANT & MACHINERY
COST (after discount) 824.62
A.2.4 MISC FIXED ASSETS
Sl.
No. Items Amount
1 Office Furniture & Equipment’s 5.00
2 AC machine for office area (5 nos.) 2.00
4 Overhead and underground water tank 2.50
5 Firefighting equipment’s 1.50
6 Pollution & pest control devices 1.50
SUB TOTAL 12.50

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A.3 Preliminary & Preoperative Expenses
Sl. No. Items Amount

Preliminary Expenses 4.50
Preoperative Expenses
1 Establishment 1.50
2 Travelling Expenses 0.50
3 Start-up expenses 4.00
4 Interest on term loan during construction 20.85
5 Cost of Insurance @1% of fixed assets 10.41
6 Stamp duty and legal expenses 5.00
7 Miscellaneous Expenses 2.00
SUB TOTAL 48.76
A.4 Interest During Construction
INTEREST DURING CONSTRUCTION:
Term Loan Rs. 790.00

Rate of
Interest 9.00% per yr
Sl No. Particulars Construction Period (Months) Total
0 to 2 2 to 4 4 to 6
1 Disbursement of
Loan 200.00 200.00 390.00 790.00
2 Cumulative Loan
200.00 400.00 790.00
3 Interest Payable
3.00 6.00 11.85 20.85

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A.5 Means of Finance
Project Cost, Sources of Funds, Debt Equity Ratio

Sl. No. Project Cost Particulars Amount
A. Land & land Development 176.18
B. Building 216.00
C. Plant & Machinery 824.62
D Misc. Fixed Assets 12.50
BLOCK CAPITAL 1,053.12
E. Preliminary & Pre-operative Expenses 48.76
F. Provision for Contingencies(@1.5% on (2)+(3)+(4)+(5)) 15.80
G. Margin Money for Working Capital 76.82
TOTAL COST OF THE PROJECT 1,370.67
MEANS OF FINANCE
PARTICULARS % AMOUNT
A BLOCK CAPITAL 1,053.12
i) Promoter Contribution 263.28
ii) Long Term loan from Bank 789.84
iii Unsecured Loan 317.55
TOTAL PROJECT COST 1,370.67

B WORKING CAPITAL 174.28
i) Cash Credit Loan from Bank 174.28
TOTAL PROMOTER CONTRIBUTION 580.83

TOTAL BANK LOAN (TL ) 789.84
TOTAL PROJECT COST 1,370.70
Debt Equity Ratio = 1.36

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A.6 Calculation of Interest & Repayment Schedule
Proposed Schedule
Draw-down Repayment of Interest Payment
Principal (@9.0% per anum)
Year Amount Year Amount Year Amount
1st 789.84 1st 1st
Year 71.09
2nd 2nd
131.64 59.24
3rd 3rd
131.64 47.39
4th 4th
131.64 35.54
5th 5th
131.64 23.70
6th 6th
131.64 11.85
7th 7th
131.64 -

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A.7 Electrical load calculation sheet for snacks manufacturing

plants
Equipment’s Qty in Connected Connected Demand DG

No Load in HP Load in KW Load Load
Potato Chips Line 1 70 52.22 39.17
Pallet fried snacks line 1 20 14.92 11.19
PROCESS Extruded snacks line 1 80 59.68 44.76
Packing Machine 7 42 31.33 23.50 15.67
Misc. process machinery 1 10 7.46 5.60
Water treatment plant 1 10 7.46 5.60
Effluent treatment plant 1 20 14.92 11.19
Compressor 1 40 29.84 22.38
UTILITY AC & Dehumidifier 2 30 22.38 16.79
Ventilation System 5 30 22.38 16.79
Thermic fluid heater 1 20 14.92 11.19 14.92
Nitrogen Plant 1 5 3.73 2.80
Misc. lighting, Fan 1 10 7.46 5.60 3.73

Office Computer, CCTV, AC Machine 10 7.46 5.60 3.73
UTILITY- ,etc 2
MISC 2 1.49 1.12
Exhaust Fan 3
Lab equipment’s 2 5 3.73 2.80 3.73
Total connected load in KW 404.00 301.38 226.04 41.78
Total connected load in KVA 376.73 282.55 52.22

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A.8 Manpower details
A. MANPOWER DETAILS FOR PRODUCTION

SHIFT - A SHIFT-B
UNIT POSITION NO. OF SALARY TOTAL TOTAL COST TOTAL COST
STAFF PER COST PER ANUM PER ANUM
MONTH PER IN SHIFT - A IN SHIFT - B
(CTC) IN MONTH (RS. IN (RS. IN
RS. IN RS. LAKHS) LAKHS)
Supervisor 1 40000 40000 4.8 9.6
PROCESS Operator 4 20000 80000 9.6 19.2
Helper 12 7000 84000 10.08 20.16
Operator 2 20000 40000 4.8 9.6
PACKING Packer 7 40000 280000 33.6 67.2
Helper 12 7000 84000 10.08 20.16
Electrician 2 20000 40000 4.8 9.6
Boiler
operator 2 20000 40000 4.8 9.6
UTILITY
WTP operator 1 20000 20000 2.4 4.8
ETP Operator 1 20000 20000 2.4 4.8
Helper 4 7000 28000 3.36 6.72
QC Manager 1 40000 40000 4.8 9.6
QC Lab Chemist 4 12000 48000 5.76 11.52
TOTAL 53 101.28 202.56
B. MANPOWER DETAILS FOR

ADMINISTRATION SHIFT - A SHIFT-B
UNIT POSITION NO. OF SALARY TOTAL TOTAL COST TOTAL COST
STAFF PER COST PER ANUM PER ANUM
MONTH PER IN SHIFT - A IN SHIFT - B
(CTC) IN MONTH (RS. IN (RS. IN
RS. IN RS. LAKHS) LAKHS)
FACTORY
MANAGER 1 75000 75000 9 9
Security 4 7500 30000 3.6 3.6
Accounts 3 15000 45000 5.4 5.4
Store &
ADMINISTRATIVE
STAFF: Dispatch 2 10000 20000 2.4 2.4
Loader &
Unloader 8 7000 56000 6.72 6.72
Office bearer 1 6000 6000 0.72 0.72
Driver&
Helper 2 10000 20000 2.4 2.4
TOTAL 21 30.24 30.24

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A.9 Cost Of Production & Profitability Estimate
SL Particulars 1st yr 2nd yr 3rd yr 4th yr 5th yr 6th yr 7th yr

NO
1 No. of Working Days 300 300 300 300 300 300 300
2 No. of Shifts 1 2 3 3 3 3 3
3 Operating hours per shift 8 8 8 8 8 8 8
4 Capacity Utilization 60% 70% 80% 80% 90% 90% 100%
5 SALES REVENUE
Amount of Potato Chips
Production (Tons/anum) 432 1,008 1,728 1,728 1,944 1,944 2,160
Amount of Pallet Fried
Snacks Production
(Tons/anum) 432 1,008 1,728 1,728 1,944 1,944 2,160
Amount of Extruded Puff
Production (Tons Per
anum) 288 672 1,152 1,152 1,296 1,296 1,440
TOTAL PRODUCTION
(TONS/ANUM) 1,152 2,688 4,608 4,608 5,184 5,184 5,760
FOR Factory Price of Potato
Chips per TON 2.12 2.18 2.24 2.31 2.38 2.45 2.53
FOR Factory Price of Pallet
fried Snacks per TON 1.72 1.77 1.82 1.88 1.93 1.99 2.05
FOR Factory Price of
Extruded product per TON 1.53 1.57 1.62 1.67 1.72 1.77 1.82
Sales revenue for Potato
Chips per Anum 913.85 2,196.28 3,878.00 3,994.34 4,628.44 4,767.29 5,455.90
Sales revenue for pallet
fried snacks per Anum 742.50 1,784.48 3,150.87 3,245.40 3,760.61 3,873.42 4,432.92
Sales revenue for extruded
snacks per Anum 440.00 1,057.47 1,867.18 1,923.20 2,228.51 2,295.36 2,626.92
TOTAL SALES REVENUE 2096.35 5038.22 8896.05 9162.94 10617.55 10936.08 12515.73
COST OF PRODUCTION
Cost of Raw Potato per
anum (Rs. In lacs) 196.99 473.44 835.96 861.03 997.72 1,027.65 1,176.09
Cost of Edible Oil per anum
POTATO CHIPS
(Rs. In lacs/anum) 113.40 272.54 481.22 495.66 574.35 591.58 677.03

Cost of Seasoning per
anum (Rs. in Lac) 86.40 207.65 366.65 377.65 437.60 450.73 515.83
Total Cost of Production
for Potato Chips per anum
(Rs. in Lac) 396.79 953.62 1683.83 1734.34 2009.67 2069.96 2368.95
Cost of Raw Pallet per

PALLET FRYED SNACKS
anum (Rs. In lacs) 120.96 290.71 513.31 528.71 612.64 631.02 722.16
(Rs. In lacs/anum) 90.72 218.03 384.98 396.53 459.48 473.26 541.62
anum (Rs. in Lac) 93.31 224.26 395.98 407.86 472.61 486.78 557.10
(Rs. in Lac) 304.99 733.00 1294.26 1333.09 1544.72 1591.06 1820.88

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Particulars 1st yr 2nd yr 3rd yr 4th yr 5th yr 6th yr 7th yr

Cost of Raw Meal per
EXTRUDED SNACKS
anum (Rs. In lacs) 57.60 138.43 244.43 251.76 291.73 300.48 343.89
(Rs. In lacs/anum) 38.88 93.44 164.99 169.94 196.92 202.83 232.12
anum (Rs. in Lac) 65.66 157.81 278.65 287.01 332.57 342.55 392.03
(Rs. in Lac) 162.14 389.69 688.07 708.72 821.23 845.86 968.04
TOTAL RAW MATERIAL

COST PER ANUM 863.93 2076.31 3666.16 3776.15 4375.61 4506.88 5157.88
PACKAGING COST
Laminate Cost per Anum
(Rs in lacs) 488.78 1,308.87 2,309.60 2,377.80 2,754.54 2,836.96 3,247.12
Cartoon cost
TOTAL CARTON COST PER
ANUM 141.60 377.96 666.79 686.32 794.87 818.46 936.56
TOTAL PACKAGING
MATERIAL COST PER
ANUM (Rs. In lacs) 630.38 1686.83 2976.39 3064.12 3549.41 3655.42 4183.68
COST OF RAW MATERIALS
COST PER ANUM (Rs. In
lacs) 863.93 2076.31 3666.16 3776.15 4375.61 4506.88 5157.88
FUEL COST PER ANUM 69.12 161.28 276.48 276.48 311.04 311.04 345.60
Cost of Electricity per
anum 17.45 100.76 177.92 183.26 212.35 218.72 250.31
Cost of Consumables 10.48 25.19 44.48 45.81 53.09 54.68 62.58
Salary & Wages 101.28 212.69 223.32 202.56 212.69 223.32 234.49
FACTORY OVERHEAD
Repair & Maintenance
@1% of Fixed Assets with
10% rise per year 10.53 11.58 12.74 14.02 15.42 16.96 18.66
i) Cost of Insurance @1% of
Fixed Assets 10.53 11.06 11.61 12.19 12.80 13.44 14.11
ii) Miscellaneous Overhead
@10% of above 2.11 2.26 2.44 2.62 2.82 3.04 3.28
iii) Total Factory Overhead 23.17 24.91 26.79 28.83 31.04 33.44 36.05
COST OF PRODUCTION 1085.43 2601.14 4415.16 4513.09 5195.82 5348.09 6086.90

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A ADMINISTRATIVE
EXPENSES
B Salaries of Administrative
staff with 5% increase per
year 30.24 31.75 33.34 35.01 36.76 38.59 40.52
i) Other admn. expenses like
courier, phone, travels,
taxes etc 12.10 12.70 13.34 14.00 14.70 15.44 16.21
ii) TOTAL ADMINISTRATIVE
EXPENSES 42.34 44.45 46.68 49.01 51.46 54.03 56.73
B COST OF PACKING
MATERIALS 630.38 1686.83 2976.39 3064.12 3549.41 3655.42 4183.68
C SALES EXPENSES
D Salaries of Marketing Staff
with 5% increase per year 20.00 21.00 22.05 23.15 24.31 25.53 26.80
i) Cost of Publicity
/advertisement /travels 10.00 10.50 11.03 11.58 12.16 12.76 13.40
ii) TOTAL SALES EXPENSES 30.00 31.50 33.08 34.73 36.47 38.29 40.20
TOTAL COST OF
PRODUCTION 1788.14 4363.92 7471.30 7660.95 8833.15 9095.82 10367.52
E TOTAL SALES REALISATION 2096.35 5038.22 8896.05 9162.94 10617.55 10936.08 12515.73
GROSS PROFIT 308.20 674.30 1424.76 1501.99 1784.40 1840.25 2148.21
G GROSS PROFIT ON SALES
(%) 14.70% 13.38% 16.02% 16.39% 16.81% 16.83% 17.16%
H FINANCIAL EXPENSES
ii) Interest on long term loan
71.09 59.24 47.39 35.54 23.70 11.85 -
i) Interest on loan for
working capital 15.69 15.69 15.69 31.37 31.37 31.37 31.37
ii) TOTAL FINANCIAL
EXPENSES 86.77 74.92 63.08 66.91 55.07 43.22 31.37
I DEPRECIATION 135.74 116.52 100.13 86.13 74.19 63.98 55.25
J OPERATING PROFIT 85.69 482.85 1261.55 1348.94 1655.15 1733.06 2061.59
K OTHER INCOME IF ANY 0.00 0.00 0.00 0.00 0.00 0.00 0.00
L PRELIMINARY EXPENSES
WRITTEN OFF 2.50 2.50 2.50 2.50 2.50 2.50 2.50
M PROFIT BEFORE TAX 83.19 480.35 1259.05 1346.44 1652.65 1730.56 2059.09
N PROVISION FOR TAXATION
(30.9%) 25.71 148.43 389.05 416.05 510.67 534.74 636.26
O PROFIT AFTER TAX 57.48 331.92 870.01 930.39 1141.98 1195.82 1422.83
P Less Dividend on Equity
@per year 17.42 34.85 52.27 104.55 139.40 139.40 139.40
RETAINED PROFIT 40.06 297.07 817.73 825.84 1002.58 1056.42 1283.43
Q Add Depreciation 135.74 116.52 100.13 86.13 74.19 63.98 55.25
Add Prel. Expenses 2.50 2.50 2.50 2.50 2.50 2.50 2.50
GROSS CASH ACCRUAL 178.30 416.10 920.36 914.47 1079.26 1122.89 1341.18
R Less Instalment Repayment
on Term loan 0.00 131.64 131.64 131.64 131.64 131.64 131.64
NET CASH ACCRUAL 178.30 284.46 788.72 782.83 947.62 991.25 1209.54
S CUMULATIVE CASH
ACCRUAL 178.30 462.76 1251.48 2034.31 2981.94 3973.19 5182.73

‹#› 77
A.10
MARGIN MONEY FOR WORKING CAPITAL

SL. PARTICULARS PERIOD BANK 1ST YEAR (60%) 2ND YEAR (70%) 3RD YEAR (80%) 4TH YEAR (80%) 5TH YEAR (80%) 6TH YEAR (80%) 7TH YEAR (80%)
NO (Days) FINANCE AMOUNT BANK MARGIN AMOUN BANK MARGIN AMOUN BANK MARGIN AMOUNT BANK MARGIN AMOUNT BANK MARGIN AMOUNT BANK MARGIN AMOUNT BANK MARGIN
(%) FINAN MONEY T FINANCE MONEY T FINANCE MONEY FINANC MONEY FINAN MONEY FINANC MONEY FINANCE MONEY
CE E CE E
A RAW MATERIALS 30.00 75.00 71.01 53.26 17.75 170.66 127.99 42.66 301.33 226.00 75.33 310.37 232.78 77.59 359.64 269.73 89.91 370.43 277.82 92.61 423.94 317.95 105.98
B UTILITIES - Electricity 30.00 1.45 1.45 51.81 51.81 51.81 51.81 51.81 51.81 51.81 51.81 51.81 51.81 51.81 51.81
C CONSUMABLES 30.00 0.87 0.87 2.10 2.10 3.71 3.71 3.82 3.82 4.42 4.42 4.56 4.56 5.21 5.21
D SALARIES & WAGES 30.00 8.44 8.44 17.72 17.72 18.61 18.61 16.88 16.88 17.72 17.72 18.61 18.61 19.54 19.54
E FACTORY OVERHEAD 30.00 1.93 1.93 2.08 2.08 2.23 2.23 2.40 2.40 2.59 2.59 2.79 2.79 3.00 3.00
F ADMN. EXPENSES 30.00 3.53 3.53 3.70 3.70 3.89 3.89 4.08 4.08 4.29 4.29 4.50 4.50 4.73 4.73
G COST OF PACKAGING 30.00 75.00 51.81 38.86 12.95 138.64 103.98 34.66 244.63 183.48 61.16 251.85 188.88 62.96 291.73 218.80 72.93 300.45 225.33 75.11 343.86 257.90 85.97
H SALES EXPENSES 30.00 2.50 2.50 2.63 2.63 2.76 2.76 2.89 2.89 3.04 3.04 3.19 3.19 3.35 3.35
I WORK IN PROCESS 2.00 75.00 4.73 3.55 1.18 11.38 8.53 2.84 20.09 15.07 5.02 20.69 15.52 5.17 23.98 17.98 5.99 24.70 18.52 6.17 28.26 21.20 7.07
J STOCK OF FINISH 3.00 75.00 17.47 13.10 4.37 41.99 31.49 10.50 74.13 55.60 18.53 76.36 57.27 19.09 88.48 66.36 22.12 91.13 68.35 22.78 104.30 78.22 26.07
Margin Money for Working Capital
GOODS
K OUTSTANDING DEBTORS 15.00 75.00 87.35 65.51 21.84 8.00 6.00 2.00 7.00 5.25 1.75 9.00 6.75 2.25 9.00 6.75 2.25 12.00 9.00 3.00 12.00 9.00 3.00
TOTAL 251.10 174.28 76.82 450.70 278.00 172.71 730.19 485.39 244.80 750.15 501.20 248.96 856.70 579.62 277.08 884.16 599.03 285.13 1000.01 684.27 315.74
‹#›
Briny Food Products
78
78
Briny Food Products
A.11 Depreciation Analysis
A.11.1 DEPRECIATION BY S.L.M

ITEM RATE (%) DEPRECIABLE DEPRECIATION
COST PER YEAR
SL.
NO.
1 Building & Civil works 10.00 216.00 21.60
2 Plant & Equipments 15.00 824.62 123.69

Furniture, Fixtures & Misc Fixed Assets 10.00 12.50 1.25
3
TOTAL 1053.12 146.54
A.11.2 DEPRECIATION BY DECLINING BALANCE METHOD
SL. PARTICULAR RATE 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR 7TH YEAR
NO. S (%) DEPRE
CIABLE DEP WDV DEP WDV DEP WDV DEP WDV DEP WDV DEP WDV DEP WDV
COST
1 Building & 5.00 216.00 10.80 205.20 10.26 194.94 9.75 185.19 9.26 175.93 8.80 167.14 8.36 158.78 7.94 150.84
Civil works
2 Plant & 15.00 824.62 123.69 700.93 105.14 595.79 89.37 506.42 75.96 430.46 64.57 365.89 54.88 311.00 46.65 264.35
Equipment’s
3 Furniture, 10.00 12.50 1.25 11.25 1.13 10.13 1.01 9.11 0.91 8.20 0.82 7.38 0.74 6.64 0.66 5.98
Fixtures &
Misc Fixed
Assets
TOTAL 1053.12 135.74 917.38 116.52 800.85 100.13 700.73 86.13 614.59 74.19 540.41 63.98 476.43 55.25 421.17

‹#› 79
Briny Food Products
A.12 Computation Of Income Tax
PARTICULARS
SL.
NO. 1st yr 2nd yr 3rd yr 4th yr 5th yr 6th yr 7th yr
1 PROFIT BEFORE TAX 83.19 480.35 1259.05 1346.44 1652.65 1730.56 2059.09
Add DEPRECIATION
2 (SLM) 146.54 146.54 146.54 146.54 146.54 146.54 146.54
Less DEPRECIATION
3 (DBM) 135.74 116.52 100.13 86.13 74.19 63.98 55.25
4 TAXABLE INCOME 93.99 510.37 1,305.47 1,406.85 1,725.00 1,813.12 2,150.37
Basic Tax @ 30% 28.20 153.11 391.64 422.06 517.50 543.94 645.11
Surcharge @ 10% 2.82 15.31 39.16 42.21 51.75 54.39 64.51
Education Cess @ 2% 0.56 3.06 7.83 8.44 10.35 10.88 12.90
TOTAL TAX 31.58 171.48 438.64 472.70 579.60 609.21 722.53

‹#› 80
Briny Food Products
A.13 Cash Flow Statement
sl. PARTICULARS OPERATING YEARS

No. OPENING
BALANCE 1st yr 2nd yr 3rd yr 4th yr 5th yr 6th yr 7th yr
A SOURCES OF FUND
I) Promoter 580.83 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Contribution
II) Venture capital 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
fund
III) Investment subsidy 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
IV) Profit before tax 172.46 557.77 1324.63 1415.85 1710.21 1776.28 2092.96
with Prel. Expenses
and interest added
back
V) Depreciation 135.74 116.52 100.13 86.13 74.19 63.98 55.25
VI) Increase in long 789.84 0.00 0.00 0.00 0.00 0.00 0.00 0.00
term loan
VII) Increase in 251.10 199.60 279.49 19.96 106.55 27.46 115.85
borrowing for
working capital
TOTAL INFLOW (Rs. 1370.67 559.30 873.90 1704.25 1521.95 1890.95 1867.72 2264.06
In Lakh)
B USES OF FUNDS
I) Capital expenditure 1053.12 0.00 0.00 0.00 0.00 0.00 0.00 0.00
for project
II) Increase in current 251.10 199.60 279.49 19.96 106.55 27.46 115.85
assets
III) Decrease in Term 0
loan 131.64 131.64 131.64 131.64 131.64 131.64
IV) Interest on long -
term loan 71.09 59.24 47.39 35.54 23.70 11.85
V) Interest on short
term loan 15.69 15.69 15.69 31.37 31.37 31.37 31.37
VI) Taxation
31.58 171.48 438.64 472.70 579.60 609.21 722.53
VII) Dividend 17.42 34.85 52.27 104.55 139.40 139.40 139.40
TOTAL OUTFLOW
(Rs. In Lakh) 1053.12 386.87 612.50 965.12 795.76 1012.25 950.93 1140.78
Opening Balance 0 317.55 489.98 751.38 1490.51 2216.69 3095.38 4012.17
Net Surplus/Deficit
(A-B) 317.55 172.43 261.40 739.13 726.18 878.69 916.79 1123.27
Closing Balance 317.55 489.98 751.38 1490.51 2216.69 3095.38 4012.17 5135.44

‹#› 81
Briny Food Products
A.14 Breakeven Analysis
A.14.1 BREAKEVEN ANALYSIS SALES
PARTICULARS 1st yr 2nd yr 3rd yr 4th yr 5th yr 6th yr 7th yr

A GROSS SALES 2096.35 5038.22 8896.05 9162.94 10617.55 10936.08 12515.73
VARIABLE COST
Cost of Production (90%
variable) 1,544.23 3,859.17 6,652.39 6,819.49 7,870.71 8,103.15 9,243.53
Selling & Admin
Overhead (50%
variable) 36.17 37.98 39.88 41.87 43.96 46.16 48.47
B TOTAL VARIABLE COST
1,580.40 3,897.15 6,692.27 6,861.36 7,914.67 8,149.31 9,292.00
FIXED COST
Cost of Production (10%
Fixed) 171.58 428.80 739.15 757.72 874.52 900.35 1,027.06
Selling & Admin
Overhead (50% Fixed) 36.17 37.98 39.88 41.87 43.96 46.16 48.47
Interest on Term loan
(100% Fixed) 71.09 59.24 47.39 35.54 23.70 11.85 -
Interest on Cash credit
loan (100% Fixed) 15.69 15.69 15.69 31.37 31.37 31.37 31.37
C TOTAL FIXED COST
294.52 541.70 842.11 866.50 973.55 989.73 1,106.90
D CONTRIBUTION (Sales -
V. Cost)= (A-B) 515.95 1,141.07 2,203.79 2,301.58 2,702.88 2,786.77 3,223.74
F BREAK EVEN SALES (Rs.
In Lakhs) 1,196.66 2,391.77 3,399.34 3,449.68 3,824.33 3,883.98 4,297.38
H BEP (As % of Sales) 57.08 47.47 38.21 37.65 36.02 35.52 34.34
AVERAGE BEP 40.90
E PROFIT VOLUME RATIO
((D/A)*100)) 24.61 22.65 24.77 25.12 25.46 25.48 25.76
G MARGIN OF SAFETY
899.69 2,646.44 5,496.72 5,713.25 6,793.22 7,052.10 8,218.35

‹#› 82
Briny Food Products
A.14.2 BREAKEVEN ANALYSIS CAPACITY
I B E P Analysis: Rs. In lacs

Base year 3rd year
Capacity
80%
utilisation
(A) Sales 8896.05
(B) Variable Cost Fixed Cost
RM,Pkg &
100% 3666.16 RM,Pkg & Stores 0% 0.00
Stores
PM 100% 3666.16 PM 0%
consumable
50% 1.74 consumable spares 50% 1.74
spares
power & fuels 30% 8.15 power & fuels 70% 19.01
direct labour 100% 223.32 direct labour 0% 0.00
other mfg exp 0% 26.79 other mfg exp 0% 0.00
depreciation 0% 0.00 depreciation 100% 75.84
other cost 30% 0.75 other cost 70% 1.75
Admn &
30% 13.51 Admn & selling 70% 31.52
selling
Finance cost 0% 63.08 Finance cost 100% 63.29
7669.66 193.15
(C.) Contribution(A -B) 1226.39
BEP at Capacity Utilisation 15.75%

BEP at Installed Capacity 12.60%
Cash BEP at Capacity Utilisation 9.57%

‹#› 83
Briny Food Products
A.15 Debt Service Coverage Ratio
Fund available 1 2 3 4 5 6 7 Total

PAT -172.57 25.92 328.26 371.32 493.36 527.41 658.06 2231.78
Depreciation 135.74 116.52 100.13 86.13 74.19 63.98 55.25 631.95
Intt. On T/L 86.77 74.92 63.08 66.91 55.07 43.22 31.37 421.33
Total -51.75 217.37 491.47 524.36 622.61 634.61 744.69 3183.36
Repayment Obligation
T/L - Instalment 0.00 131.64 131.64 131.64 131.64 131.64 131.64 789.84
Intt. On T/L 86.77 74.92 63.08 66.91 55.07 43.22 31.37 421.33
Total 86.77 206.56 194.72 198.55 186.71 174.86 163.01 1211.17
DSCR -0.60 1.05 2.52 2.64 3.33 3.63 4.57 2.63

Average D S C R 2.63
A.16 Internal Rate of Return (IRR)
Cash Out Flow (Rs lacs) -1314.49
Add Interest
Net profit Rs in on term Add P&P(Rs Total cash
Year lacs Add depreciation(Rs lacs) loan(Rs lacs) lacs) Inflow(Rs lacs)
1 -172.6 135.7 0 2.5 -34.3

2 25.9 116.5 131.64 2.5 276.6
3 328.3 100.1 131.64 2.5 562.5
4 371.3 86.1 81.52 2.5 541.5
5 403.0 74.2 81.52 2.5 561.2
6 433.6 64.0 81.52 2.5 581.6
7 463.3 55.3 81.52 2.5 602.6
INTERNAL RATE OF RETURN 19.35%

‹#› 84
Briny Food Products
A.17 CMA Data Analysis
ASSESSMENT OF WORKING CAPITAL REQUIREMENT ANNEXURE - II

PROJECTED PROFIT AND LOSS ACCOUNT OF THE PROJECTE
BRINY FOOD PRODUCTS (No. Of months 12 and amount in Rs. Lacs)

INCOME
Revenue from Operations (Gross)
2,096.35 5,038.22 8,896.05 9,162.94 10,617.55 10,936.08 12,515.73
Less: Excise Duty
- - - - - - -
Revenue from Operations (Net)
2,096.35 5,038.22 8,896.05 9,162.94 10,617.55 10,936.08 12,515.73
Other Income
- - - - - - -
Total Revenue (I)
2,096.35 5,038.22 8,896.05 9,162.94 10,617.55 10,936.08 12,515.73
EXPENSES
Cost of Materials Consumed
1,727.86 4,152.61 7,332.33 7,552.30 8,751.23 9,013.76 10,315.75
Purchase of Stock in Trade
- - - - - - -
Changes in Inventories of Finished
Goods, Work-in-Progress and
Stock-in-Trade 22.20 53.36 94.22 97.05 112.46 115.83 132.56
Employee Benefits Expense
101.28 212.69 223.32 202.56 212.69 223.32 234.49
Finance Costs
86.77 74.92 63.08 66.91 55.07 43.22 31.37
Depreciation and Amortisation
Expense 135.74 116.52 100.13 86.13 74.19 63.98 55.25
Other Expenses
195.06 390.59 607.92 620.62 697.95 712.70 793.98
Total Expenses (II)
2,268.91 5,000.71 8,421.00 8,625.58 9,903.57 10,172.82 11,563.40
Profit / (Loss) before Tax (I-II)

(172.57) 37.51 475.06 537.36 713.99 763.26 952.33
Tax Expenses:-
Provision for Current Tax
- 11.59 146.79 166.04 220.62 235.85 294.27
Less : MAT Credit Entitlement
- - - - - - -
Provision (Write back) realating to
earlier years - - - - - - -
Deferred tax charge / (credit)
- - - - - - -
Total tax expense / (credit)
- 11.59 146.79 166.04 220.62 235.85 294.27
Profit/(Loss) for the period
(172.57) 25.92 328.26 371.32 493.36 527.41 658.06

‹#› 85
Briny Food Products
ASSESSMENT OF WORKING CAPITAL REQUIREMENT ANNEXURE - II

FORM - II - OPERATING STATEMENT OF THE PROPOSED PROJECT
BRINY FOOD PRODUCTS
(No. Of months 12 and amount in Rs. Lacs)
1 Gross Sales
i Domestic Sales 2,096.35 5,038.22 8,896.05 9,162.94 10,617.55 10,936.08 12,515.73
ii Export Sales - - - - - - -
Other Operating
iii Income - - - - - - -
Total 2,096.35 5,038.22 8,896.05 9,162.94 10,617.55 10,936.08 12,515.73
2 Less : Excise Duty - - - - - -
3 Net Sales 2,096.35 2,096.35 5,038.22 8,896.05 9,162.94 10,617.55 10,936.08

Change in net sale as compared to
4 previous year - - 140.33 76.57 3.00 15.88 3.00
5 Cost of sales
i (a) Raw Materials
a. Imported - - - - - - -
b. Indeginious 863.93 2,076.31 3,666.16 3,776.15 4,375.61 4,506.88 5,157.88

i (b) Packing Materials
a. Imported - - - - - - -
b. Indeginious 863.93 2,076.31 3,666.16 3,776.15 4,375.61 4,506.88 5,157.88

Consumable & Spare
ii parts
a. Imported - - - - - - -
b. Indeginious 10.48 25.19 44.48 45.81 53.09 54.68 62.58
iii Power Fuel 86.57 262.04 454.40 459.74 523.39 529.76 595.91
Direct Labour (Factory
iv Wages & Salaries) 101.28 212.69 223.32 202.56 212.69 223.32 234.49
Other manufacturing
v Expenses 23.17 24.91 26.79 28.83 31.04 33.44 36.05
vi Depreciation 135.74 116.52 100.13 86.13 74.19 63.98 55.25
vii Other cost 2.50 2.50 2.50 2.50 2.50 2.50 2.50
Sub total (i to vii) 2,087.60 4,796.47 8,183.95 8,377.88 9,648.12 9,921.45 11,302.53
Particulars 4.73 11.38 20.09 20.69 23.98 24.70 28.26

‹#› 86
Briny Food Products
viii Change in WIP 2,092.34 4,807.84 8,204.04 8,398.57 9,672.10 9,946.14 11,330.80
x Cost of Production 4.01 230.37 692.02 764.37 945.46 989.94 1,184.94
Gross profit 17.47 41.99 74.13 76.36 88.48 91.13 104.30

Change in Finished
xii Goods 2,109.81 4,849.83 8,278.17 8,474.92 9,760.58 10,037.28 11,435.09
xiii Cost of Sales 72.34 75.95 79.75 83.74 87.92 92.32 96.94
Administrative , selling & Distribtion
6 expenses 72.34 2,182.14 4,925.78 8,357.92 8,558.66 9,848.50 10,129.60
7 Sub total (5 to 6) 2,182.14 (85.80) 112.44 538.13 604.27 769.05 806.48
8 Operating Profit Before Interest (3-7) (85.80) 86.77 74.92 63.08 66.91 55.07 43.22
9 Interest (Finance Cost) 86.77 (172.57) 37.51 475.06 537.36 713.99 763.26
10 Operating Profit after Interest (8-9) (172.57) - - - - - -

Add : Other Non
11 i Operating Income - - - - - - -
Deduct : Other Non
ii Operating Expenses - - - - - - -
Net of Other non
operating
income/Expenses (172.57) 37.51 475.06 537.36 713.99 763.26 952.33
12 Profit Before Tax/Loss (10+11) (172.57) - 11.59 146.79 166.04 220.62 235.85
13 Provision for Tax - (172.57) 25.92 328.26 371.32 493.36 527.41
14 Net profit /Loss (12-13) (172.57) 17.42 34.85 52.27 104.55 139.40 139.40
Less : Dividend paid to
15 a Share Holders (189.99) (8.93) 275.99 266.77 353.96 388.01 518.66
16 Retained Profit (14-15) (188.31) 135.74 116.52 100.13 86.13 74.19 63.98
Add
Depreciation 2.50 2.50 2.50 2.50 2.50 2.50 2.50
Add Prel.
Expenses (51.75) 110.10 378.62 355.40 430.65 454.49 576.42
GROSS CASH
17 ACCRUAL - 131.64 131.64 131.64 131.64 131.64 131.64
Less
Instalment
Repayment
on Term loan (51.75) 110.10 378.62 355.40 430.65 454.49 576.42
NET CASH
18 ACCRUAL (51.75) 110.10 378.62 355.40 430.65 454.49 576.42
CUMULATIVE
CASH
19 ACCRUAL - - - - - - -

‹#› 87
Briny Food Products
ASSESSMENT OF WORKING CAPITAL REQUIREMENT ANNEXURE - III

FORM-III-PROJECTED BALANCE SHEET OF THE PROPOSED PROJECT
EQUITY AND
LIABILITIES
Shareholders’ Fund
Share Capital
580.83 604.07 634.27 634.27 702.32 793.00 888.36
Reserves and
Surplus (189.99) (8.93) 275.99 266.77 353.96 388.01 518.66
Equity Share
Warrants
Money Received
against share
warrants
Share Warrants
Non Current
Liabilities
Long Term -
Borrowings 789.84 658.20 526.56 394.92 263.28 131.64
Current Liabilities
Short Term
Borrowings 174.28 174.28 174.28 174.28 174.28 174.28 174.28
Trade Payables
140.00 90.00 101.80 113.84 126.11 138.63 141.41
Other Current
Liabilities 97.39 251.77 396.43 448.34 537.07 544.96 592.48
Short Term - - - - - - -
Provisions
TOTAL
1,592.34 1,769.38 2,109.33 2,032.40 2,157.03 2,170.54 2,315.19

‹#› 88
Briny Food Products

ASSETS
Non Current Assets

Fixed Assets
Tangible Assets
917.38 800.85 700.73 614.59 540.41 476.43 421.17
In -tangible
Assets 29.70 20.00 20.00 20.00 20.00 20.00 20.00
Capital Work in
Progress and Pre-
Operative
Expenditure
Pending
Allocation
Non Current
Investments
Deferred Tax
Assets (Net)
Long Term Loans
and Advances
Other Non
Current Assets 241.69 435.04 815.00 781.38 805.22 827.59 826.94
Current Assets
Inventories
164.25 180.66 198.71 218.56 240.39 264.41 290.83
Trade Receivables
54.50 58.43 61.69 61.88 196.92 210.07 364.85
Cash and Bank
Balances 25.00 25.63 26.91 27.44 27.99 28.55 29.12
Short Term Loans
and Advances
Other Current
Assets 159.83 248.78 286.30 308.55 326.10 343.49 362.27
- - - - -- -
TOTAL 1,534.88
1,592.35 1,769.39 2,109.33 2,032.40 2,157.03 2,170.54

‹#› 89
Briny Food Products
ASSESSMENT OF WORKING CAPITAL REQUIREMENT ANNEXURE - III

FORM - III - PROJECTED BALANCE SHEET (LIABILITIES)
CURRENT LIABILITIES
1 Short Term Borrowings from Bank (including

bill purchased discounted,and excess
borrowing placed on repayment basis)
i CC Loan From Applicant bank

174.28 174.28 174.28 174.28 174.28 174.28 174.28
ii From Other bank - - - - - - -
iii (of which BP & BD) - - - - - - -
Sub-Total (i +ii) (A)
174.28 174.28 174.28 174.28 174.28 174.28 174.28
2 Short Term Borrowings from Others - - - -
20.00 5.00 5.00
3 Sundry Creditors (Trade)
140.00 90.00 101.80 113.84 126.11 138.63 141.41
4 Advance payment from Customers/Deposit -
from Dealers 2.00 2.20 2.42 2.66 2.93 3.22
5 Provision for Taxation
- 11.59 146.79 160.77 220.62 235.85 294.27
6 Dividend Payable
- 34.85 55.76 110.13 150.41 154.44 154.84
7 Other Statutory Liabilities (Due with in 1 year)
1.50 1.65 1.85 2.03 2.24 2.46 2.71
8 Deposit / Instalments of Term
Loan/DPGG/Debenture etc. (due with in 1
year) 71.09 190.88 179.03 167.18 155.34 143.49 131.64
9 Other Current Liabilities Provisions (due with
in 1 year)- Specify major items
a Lease Rent & Others

4.50 5.00 5.00 5.00 5.00 5.00 5.00
b Audit Fees
0.30 0.80 0.80 0.80 0.80 0.80 0.80
c
Sub-Total (2 to 9) (B)
237.39 341.77 498.23 562.17 663.18 683.60 733.89
10 Total Current Liabilities (A+B)
411.66 516.05 672.51 736.45 837.46 857.88 908.17
TERM LIABILITIES
11 Debenture (not maturing within 1 year) - - - - - - -

12 Preferance Shares (Redemable after 1 year) - - - - - - -

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Briny Food Products
13 Term Loans (excluding instalments payable

within 1 year)
789.84 658.20 526.56 394.92 263.28 131.64 -
14 Deffered payment Credits (excluding - - - - - - -
instalments due thin 1 year)
15 Term Deposits (repayble after 1 year) - - - - - - -

16 Other Term Liabilities - - - - - - -
17 Total Term Liabilities (11 to 16)
789.84 658.20 526.56 394.92 263.28 131.64 -
18 Total Outside Liabilities (10+17)
1,201.50 1,174.25 1,199.07 1,131.37 1,100.74 989.52 908.17
NET WORTH
19 Ordinary Share capital

580.83 604.07 634.27 634.27 672.32 753.00 843.36
20 General Reserve
- - - - 30.00 40.00 45.00
21 Revaluation Reserve - - - - - - -
22 Other Reserve (excluding Provisions) - - - - - - -
23 Surplus (+) Deficit( - )in Profit and Loss
Account (189.99) (8.93) 275.99 266.77 353.96 388.01 518.66
24 Net Worth
390.84 595.14 910.26 901.04 1,056.29 1,181.02 1,407.03
25 TOTAL LIABILITIES (18+24)
1,592.34 1,769.38 2,109.33 2,032.40 2,157.03 2,170.54 2,315.19

‹#› 91
Briny Food Products
ASSESSMENT OF WORKING CAPITAL REQUIREMENT
FORM - III - PROJECTED BALANCE SHEET (ASSETS) ANNEXURE - III

CURRENT ASSETS
26 Cash and Bank Balances
25.00 25.63 26.91 27.44 27.99 28.55 29.12
27 Investments (other than Long Term)
i Govt. And other trustee securities
10.00 11.00 12.10 13.31 14.64 16.11 17.72
ii Fixed Deposit with Bank
25.00 30.00 50.00 50.00 50.00 50.00 50.00
28 i Receivables other than deffered &
exports(including bill purchased and 64.83 122.78 133.05 147.33 156.11 163.83 171.93
discounted by banks)
ii Export receivables (including bills -
purchased/discountsd by banks) 2.00 2.00 2.00 2.00 2.00 2.00
29 Instalments of deffered receivables(due - - - - - - -

within 1 year)
30 Inventory
i Raw Materials (including stores and
other items used in the process of
Manufacture)
Imported - - - - - - -
Indeginious
85.00 93.50 102.85 113.14 124.45 136.89 150.58
ii Stocks in Process(WIP)
7.00 7.70 8.47 9.32 10.25 11.27 12.40
iii Finshed Goods
72.00 79.20 87.12 95.83 105.42 115.96 127.55
iv Other Consumable stores & Spares - - - - - - -
Imported - - - - - - -
Indeginious
0.25 0.26 0.27 0.27 0.28 0.29 0.29
31 Advance to Suppliers of Raw Materials and
Stores /Spares 60.00 63.00 66.15 69.46 72.93 76.58 80.41
32 Advance payment of Taxes -
20.00 23.00 26.45 30.42 34.98 40.23
33 Other Current Assets (Specify major items)
a - - - - - - -
b - - - - - - -
c - - - - - - -
Sub-Total (a to c) - - - - - - -
34 Total Current Assets (26 to 33)
349.08 455.06 511.92 554.55 594.48 636.45 682.23

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Briny Food Products

FIXED ASSETS
35 Gross Block of all fixed assets including
Capital WIP 1,053.12 917.38 800.85 700.73 614.59 540.41 476.43
36 Depreciation to date
135.74 116.52 100.13 86.13 74.19 63.98 55.25
37 Net Block of Fixed Assets (35-36)
917.38 800.85 700.73 614.59 540.41 476.43 421.17
OTHER NON-CURRENT ASSETS - - - - - - -
38 Investments /Book Debts/Advances/Deposits
which are not Current Assets
i Investment in Subsidiary -
Companies/Affiliates 20.00 23.00 26.45 30.42 34.98 40.23
Others - - - - - - -
ii Advance to Suppliers of Capital Goods & - - - -
Contractors 70.00 5.00 10.00
iii Deffered receivables(maturity -
exceeding1 year) 5.94 30.73 205.50 197.97 196.12 186.50
iv Others - - - - - - -
iv(a) Security deposit with WBSEDCL
10.00 10.00 10.00 10.00 10.00 10.00 10.00
iv(b) Receivable over 6 months
215.69 442.12 792.55 575.35 732.52 765.33 923.84
iv(c) Security deposit with Sales Tax
Authority 0.50 0.05 0.05 0.15 0.15 0.15 0.15
iv(d) Refund receivable against excess -
payment of Income Tax 10.36 10.36 25.81 31.08 31.08 31.08
39 Non -Consumable stores & Spares - - - - - - -

40 Other non current assets including dues from - - - - - - -
Directors
41 Total Other Non-Current Assets (38 to 40)
296.19 493.47 876.69 843.26 1,002.14 1,037.66 1,191.79
42 Intangible assets (Patents,
goodwill,Preliminary expenses,Bad and 29.70 20.00 20.00 20.00 20.00 20.00 20.00
doubtful debts not provided for etc.
43 Total Assets(34+37+41+42)
1,592.35 1,769.39 2,109.33 2,032.40 2,157.03 2,170.54 2,315.19
44 Tangible Net worth(24-42)
361.14 575.14 890.26 881.04 1,036.29 1,161.02 1,387.03
45 Net working Capital(34-10)
(62.58) (60.98) (160.59) (181.90) (242.97) (221.43) (225.94)
46 Current Ratio(34/10)
84.80 88.18 76.12 75.30 70.99 74.19 75.12
47 Total outside Liabilities/Tangible Net
Worth(18/44) 332.70 204.17 134.69 128.41 106.22 85.23 65.48
48 Total Term Liabilities/Tangible Net
Worth(17/44) 218.71 114.44 59.15 44.82 25.41 11.34 -

‹#› 93
Briny Food Products
A.18 Conclusion
The sensitivity analysis shows that the project has the capability to withstand some adverse
variance in selling price and raw material price from the assumptions underlying the financial
projections.
Based on the above analysis it can be concluded that-

• The company is projected to earn net profit from the first year of operation
• The firm will generate adequate surplus for servicing of term loan as per schedule
• The average DSCR over the tenor of term loan works out to 2.32
• Operating break even sales is 41.42% and capacity break even is 9.57%
• IRR for the project is 20.50%
The project is considered technically feasible and economically viable subject to underlying
assumptions and provides adequate safety to the lenders

‹#› 94

Manufacturing Potato Chips, Extruded & Fried Snacks Project Report

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Manufacturing Potato Chips, Extruded & Fried Snacks Project Report

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DETAIL PROJECT REPORT ON

P: +91-8420021789 45, Akhil Mystry Lane

1. PROJECT AT A GLANCE .................................................................................................... 1

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9.1. Flow Chart of Pallet Fried Snacks .................................................................. 43

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1. NAME OF THE PROMOTING COMPANY : BRINY FOOD PRODUCTS

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10 months after Sanction the

BEP at Capacity Utilisation 15.75%

BEP at Installed Capacity 12.60%

Cash BEP at Capacity Utilisation 9.57%

23. DSCR : 2.63

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2.1. Project background & Objectives

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NAME : MR. AVIK MONDAL

FATHER’S NAME : MR. SAJAL KUMAR MANDAL

MOBILE NO. : +91-8697662810/9433475157

EMAIL ADDRESS : info.brinyfoodproducts@gmail.com

DATE OF BIRTH : 18.02.1998

EDUCATIONAL QUALIFICATION : B. Arch

AADHAAR CARD NO. : 233343639233

IT PAN NO. : CZPPM5302P

EXPERIENCE : MORE THAN 3 YEARS EXPERIENCE IN CIVIL

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4.1. Executive summery

4.2. Indian Snacks Food Market

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4.3. Present Scenario Of Food Processing Industries In India

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Food processing sector is indispensable for the overall development of an economy as it

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4.4. Future Of Indian Food Industry

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• Growing populations and their vast demand for food

• Government policies like, ‘Make in India’, ‘Startup India’

4.5. Strategies For Success In India's Snack Food Market

4.5.1. Ravenous growth

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4.5.2. An attractive sector for new entrants

4.6. Key Challenges and Strategic Responses in Snacks Food

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4.6.2. Response: Develop an entry strategy based on your own strengths

4.6.3. Challenge: Rising Input Costs

4.7. Responses: Develop a clear pricing strategy

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4.8. Challenge: Diverging Consumer Trends

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4.9. Response: Closely monitor micro as well as macro trends

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5.1. Market Potentiality

5.2. Market Scenario

5.3. Savory Snacks market in India

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5.4. Salted Snacks-Namkeen Market Potential