A

Project Report
on
Production of Spread Fats
Submitted
In Partial Fulfilment of the Requirement for the Degree of
Bachelor of Technology in Oil Technology
Submitted by
Anup Kumar Gupta (200111022)
Amartesh Singh (200111019)
Under the Guidance of

Dr R.K. Trivedi
Professor

Department Of Oil
Technology School Of
Chemical Technology
Harcourt Butler Technical University, Kanpur 208002
April 2024
 UNDERTAKING

This is to certify that report which has been presented here entitled "Production Of Spread Fats
" in partial fulfilment of the requirements for the award of the Degree of Bachelor of Technology
and submitted in the Department of Oil Technology, H.B.T.U., Kanpur is an authentic record of
our own work carried out under the guidance of Dr. R.K.Trivedi, Professor, Department of Oil
Technology, H.B.T.U. Kanpur.
The matter embodied in this report has not been submitted by me for the award of any
other degree or diploma.

Anup Kumar Gupta, Roll No. 200111022

Amartesh Singh, Roll No. 200111019

This is to certify that the above Statement made by the candidates are correct to the best
of ourknowledge.

Date:

(Dr.R.K.Trivedi)
Supervisor
 DEPARTMENT OF OIL TECHNOLOGY
SCHOOL OF CHEMICAL TECHNOLOGY
HARCOURT BUTLER TECHNICAL UNIVERSITY
KANPUR

CERTIFICATE
This is to certify that this report entitled “Production of Spread Fats” is a bonafide record of
the project submitted by

1. Anup Kumar Gupta, Roll No. 200111022

2. Amartesh Singh, Roll No. 200111019

under my guidance towards the partial fulfilment of the requirements for the award of
Bachelor of Technology in Oil Technology from Harcourt Butler Technical University, Kanpur

Dr. R.K. Trivedi

PROFESSOR
Department of Oil Technology
 Acknowledgements

We take this opportunity to express our sincere gratitude towards our dignified guide Dr. R.K.
Trivedi, Professor, Department of Oil Technology, H.B.T.U. Kanpur for his wholeheartedness
and high dedication with which he was involved in this work. We are grateful for the hours he
spent discussing and explaining even the minute details of the work despite his hectic schedule
of work in the department. He listened patiently and authoritatively as he guided us and made
his valuable suggestions.
We are grateful to all our teachers in the Oil Technology Department for their suggestions
and constant encouragement. We are also grateful to our batch mates for their suggestions and
constant encouragement.

Anup Kumar Gupta, Roll No. 200111022

Amartesh Singh, Roll No. 200111019

INDEX
1-Introduction of Spread Fats 1
1.1 Products
1.1.1- Peanut Butter
1.1.2- Margarine
1.1.3- Mayonnaise
1.1.4- Butter
2-Peanut Butter Market 5
2.1-Indian Scenario
2.2-Manufacturing Process Peanut Butter
2.3-Capital Input
3-Technical Analysis 11
3.1-Machinery
3.1.1-Peanut Sheller
3.1.2-Peanut Roasting Machine
3.1.3-Color Sorter Machine for Peanuts
3. 1. 4 -Sizing shaker Machine
3.1.5- Peanut Grinding Machine
4- Financial Analysis 16
4.1- Raw Materials
4.2- Manpower Requirements
4.3- Implementation Shedule
4.4-Esteemed Cost of Project
4.5-Means of financing
4.6-Brake Even Point
4.7- Projected Profitability
4.8-Projected Cash Flow
4.9-Projected Balance sheet
5-Equipment Design Calculation 24
References 30
 1

1. INTRODUCTION OF SPREAD FATS

Spread fats, commonly known as spreads or margarines, are food products designed to be
spread on bread, toast, or other baked goods. They serve as alternatives to traditional butter and
are often used in cooking, baking, or as a condiment. Spread fats are versatile, offering various
flavors and textures to suit different preferences and dietary needs. While historically
margarines weredeveloped as a butter substitute, modern spread fats often cater to a broader
market, including those seeking plant-based or reduced-fat options.
Key Characteristics of Spread Fats

1. Ingredients:
- Typically made from a combination of vegetable oils, water, and emulsifiers.
- Commonly use oils such as soybean, canola, palm, or sunflower oil.

2. Consistency:
-Varied consistency ranging from soft and easily spreadable to harder varieties suitable for
baking.
- Offers a diverse range of culinary applications.

3. Flavor Options:
- Available in various flavors to cater to different preferences.
- Some may have a buttery taste, while others include additional flavors likeherbs, garlic,
or sweet options.

5. Nutritional Profile:
- Formulated to meet specific nutritional requirements.
- Some products are low in saturated fats, and others may be fortified withvitamins and
omega-3 fatty acids.

6. Usage:
- Versatile usage includes spreading on bread, melting for cooking and baking,or as a base for
sauces and dressings.

7. Health Considerations:
- Designed to align with health-conscious consumer preferences.
- Options catering to vegan, lactose-free, or gluten-free dietary needs.
 2

1.1 PRODUCTS

1.1.1 Peanut Butter:

Groundnut is an agriculture produce with 2 crops, with the winter crop contributing more than
the summer crop. Groundnuts in shell (pods) are de-stoned and then de-shelled to obtain
peanuts, After grading them as per different sizes (known as counts) they are sold in the market
for peanut butter production.

Fig 1 (a) Sample of peanut butter

➔ Peanut is a legume crop grown mainly for its edible seeds.

➔ Peanuts are similar in taste and nutritional profile to “tree nuts”.
➔ Peanut butter is a food paste or spread made from ground, dry-roastedpeanuts.
➔ Can contain additional ingredients that modify the taste or texture
➔ These ingredients include:
1. Salt
2. Sweeteners
3. Emulsifiers
 3

1.1.2 Margarines:
Margarine is a spread used for flavoring, baking, and cooking. It is most often used as a substitute
for butter. Although originally made from animal fats, mostmargarine consumed today is made
from vegetable oil.

Fig 1(b) sample of margarines

➔ fats made from a blend of vegetable oils, water, andemulsifiers.
➔ Composed of vegetable oils, emulsifiers, and water for a spreadableconsistency.
➔ Versatile use in spreading, toasting, baking, and cooking.
➔ Options with reduced saturated fats for health-conscious consumers.
➔ Plant-based and lactose-free options for specific diets.
➔ Fortified with vitamins and omega-3 fatty acids.
➔ Artisanal variations with premium ingredients and unique flavors.
➔ A staple globally, widely used in households and foodservice.
➔ Made with plant-based oils, often cholesterol-free.
 4

1.1.3 Mayonnaise
Mayonnaise is a popular condiment known for its creamy texture and tangy flavor. Typically
made with ingredients like egg yolks, oil, vinegar, and mustard,it serves as a versatile addition
to various dishes. Used as a sandwich spread, salad dressing, or base for dips, mayonnaise
enhances the overall taste and texture of meals. The emulsification process gives it a smooth
consistency. Withvariations including light or low-fat options and plant-based alternatives,
mayonnaise caters to diverse dietary preferences. Its global appeal makes it a kitchen staple,
providing a quick and delicious way to elevate the taste of numerous culinary creations.

sample of mayonnaise Fig 1(c)

1.1.4 Butter
Butter is a dairy product made from the fat and protein components of milk. The primary
ingredient in butter is cream, which is the fatty portion of milk. The production process of
butter involves separating the fat from the liquid components of milk and then churning the fat
to create butter.

Fig 1(d) sample of butter

 5

2 Peanut Butter Market

The global peanut butter market has been experiencing steady growth due tofactors such as
increasing consumer awareness of the health benefits associated with peanut butter, the
popularity of peanut-based snacks, and a growing demand for convenience foods. However,
please note that the information provided here might not reflect the latest developments, and
it's advisable to consult more recent sources for the most up-to-date informationon the global
peanut butter market.
Key trends and factors that have historically influenced the peanut buttermarket include:
‣ Health Consciousness: The perception of peanut butter as a protein-rich,nutritious
food has contributed to its popularity. Peanut butter is a goodsource of healthy fats,
protein, and various vitamins and minerals.

‣ Product Innovation: Manufacturers have been introducing new andinnovative

peanut butter products to cater to changing consumer preferences. This includes
variations such as natural, organic, and flavored peanut butters.

‣ Growing Demand in Emerging Markets: The demand for peanut butterhas been
expanding in emerging markets as consumer preferences shifttowards Western-style
diets and convenience foods.

‣ E-Commerce and Online Retailing: The rise of e-commerce has providedconsumers

with convenient access to a wide range of peanut butter products, contributing to market
growth.

‣ Concerns Over Allergens: While peanut butter is a staple in many households,

there is an ongoing concern about peanut allergies. Someconsumers are looking for
alternative nut and seed spreads due to allergy concerns.

‣ Sustainable and Ethical Practices: Consumers are becoming more conscious of the
environmental and ethical aspects of food production. This has led to a demand for
sustainably sourced and ethically producedpeanut butter.

‣ Market Consolidation: The global peanut butter market has seen some degree of
consolidation, with major players acquiring smaller brands andexpanding their product
portfolios.
 6

2.1 Indian Scenario

In recent years, the Indian peanut butter market has witnessed significant growth, fueled by a
confluence of factors shaping consumer preferences. With a heightened awareness of health
and nutrition, peanut butter has emerged as a popular choice among health-conscious
individuals in India, known for its rich protein content and healthy fats. Urbanization and
changing lifestyles have further contributed to the surge in demand for convenient foods,
positioning peanut butter as a versatile and accessible option. The market has seen notable
product innovation, with manufacturers introducing variations such as natural, organic, and
flavored peanut butters to cater to diverse consumer tastes. This trend is not limited to urban
areas, as the penetration of peanut butter into Tier-II and Tier-III cities continues to expand.
The retail landscape has evolved to include supermarkets, hypermarkets, convenience stores,
and online platforms, offering consumers a variety of choices. Both domestic and international
brands contribute to a competitive landscape, fostering product development and quality
enhancements. While challenges such as consumer education and price sensitivity persist,
opportunities lie in expanding product portfolios to meet the growing demand for healthy and
convenient snacks in India.

Fig 2(a)
 7

2.2 Manufacturing Process Peanut Butter

 8

Planting and Harvesting of peanuts

Peanuts are planted in April or May and harvested in September. The peanut grows as a plant
that blooms yellow flowers. The flower petals wilt after a period of time and signal the
underground growth of the nuts. During harvesting, peanuts are removed from vines by
portable mechanical pickers and are delivered to warehouses for cleaning. During the cleaning
process, blowers remove dust, sand, vines, stems, leaves, and empty shells.

Shelling

Shelling is the process of removing the outer covering of the nuts. During this procedure,
peanuts are passed between a series of rollers that crack them. Thecracked peanuts are then
repeatedly passed through screens, blowers, magnets, and destoners. There, they are shaken,
gently tumbled, and air blown, until all the shells and rocks are removed. After shelling,
the peanutsare graded for size, color, defects, and broken skins. The peanuts with defects are
discarded while the healthy ones are packaged and ready for processing.

Dry Roasting

Dry Roasting is a process by which heat is applied to dry foodstuffs without the use of oil or
water as a carrier. During roasting, the peanuts travel through a hot air roaster, in a continuous
rocking motion. This motion allows the nuts to roast evenly. A photometer indicates when the
cooking is complete and after this process, the color of the peanuts change from white to light
brown.

Cooling

Peanuts have to be rapidly cooled to stop the cooking process. This helps them to retain
moisture and oil, preventing them from drying out. For cooling to occur, the hot peanuts are
passed directly from the roaster to a perforated metal cylinder, where a Figure 3- Dry roasting
of peanuts. Figure 4- Peanut’s color changes from white to light brown after roasting. Some of
the skin of the nuts also peels off a large volume of air is pulled through by suction fans. The
peanuts are brought to a temperature of 30 degrees Celsius.
 9

Blanching

Blanching removes the remaining outer skins of the peanuts that still remain after roasting by
rubbing them through rubber belts. In this process, the kernels are also split in two, and the
heart of the peanuts are removed becausethey have a bitter taste to them. Finally, the blanched
nuts are mechanically screened and inspected on a conveyor belt to remove scorched or rotten
nuts.

Grinding

After blanching, a grinder grinds the peanuts into a paste while incorporating other ingredients.
Peanut butter is usually made by two grinding operations. The first reduces the nuts to a
medium grind, and the second to a fine, smooth texture using a very high speed comminutor.
This machine’s combination actionof shearing and grinding, transforms the hard peanuts into a
smooth paste. As peanuts are being fed into the grinder, about 2% salt, hydrogenated vegetable
oil, dextrose, and corn syrup are added to the mixture.

Hydrogenated vegetable oil acts as a stabilizer, which prevents the oil from collecting at the
top of the peanut butter jar. Grinding causes the temperature of the peanut butter to go up to 60
degrees Celsius. For this reason, the paste would have to be cooled to 38 degrees Celsius after
mixing. Throughout the grinding process, peanuts are kept under constant pressure to prevent
the formation of air bubbles, which could cause oxidation. Reducing oxidationincreases the
shelf life of the peanut butter because a lower oxygen content makes it more difficult for
bacteria to thrive and cause spoilage. Furthermore, after grinding, the peanut butter is
considered de-aerated, stabilized, and readyfor packaging.

Packaging

During packaging, the newly formed peanut butter is delivered into jars in a continuous stream
under even pressure. Once again, to prevent oxidation, manufacturers use vacuum packing
when the peanut butter jars are being sealed. After it is put into final containers, the peanut
butter is allowed to remain undisturbed until it is completely crystallized. Jars are then labeled,
placed in cartons, and stored until they are ready to be shipped out to wholesale institutions or
customers like yourself!
 10

2.3 CAPITAL INPUTS

Land and Building

Pricing is very critical as explained earlier. A plot of land of about 500 sq. meters, with built-up
area of 300 sq. meters, is adequate. The production area would have two major sections. One
would have processing and the second one would accommodate for packaging and storing. A
producing room of about 150 sq.mtrs and raw materials storage of 75 sq. meters. is sufficient.
Finished goods go down can be accommodated in 40-45 sq. mtrs. The land we have taken as on
lease. The price of land would be supposed to be taken at Rs. 250000/- for ten year.

Plant-Layout
 11

3 Technical Analysis

3.1 Machinery
For a new entrant, the initial production capacity has to be moderate. The daily production
capacity of roasted peanuts will be 400kg. Considering 8-10 hours working may be planned.
With 300 working days, the annual capacity would be 144 tones. Peanut butter daily production
capacity would be 800 bottles of 500 grams annual consumption of peanuts would be 165 tons
peanut, Salt would be 10 tons and Jaggery would be 12 tons This would need the following
machines:

Equipment Price (Rs.)

Peanut Sheller (1) 200000

Peanut Roaster Machine (3) 180000

Size Shaker (1) 85000

Colour Sorting Machine (2) 150000

Grinding Machine (2) 300000

Packaging Machine (3) 90000
Other Miscellaneous Equipments 95000

Total 11,00,000

Table No. 3(a) Peanut Butter Equipments and Price

 12

3.1.1 Peanut Sheller

Fig 3(a) Peanut Sheller

Peanut Sheller machine is very useful to shell nuts and kernels and clean a peanut. Unshelled
peanuts are adjusted to avoid excessive brittleness of the shells and kernels and to reduce the
amount of dust in the plant. The size-graded peanuts are passed between a series of rollers
adjusted to the variety, size, and condition of the peanuts, where the peanuts are cracked. The
cracked peanuts then repeatedly pass over screens, sleeves, blowers, magnets,and destoners,
where they are shaken, gently tumbled, and air blown, until all the shells and other foreign
mikorial (rocks, mudballs, metal, shrivels) are removed.

Features:

• Economical
• User-friendly
• Superior performance

Specification:

Capacity 200 to 250 kg/hr

Voltage 400 v
Power 30 w
 13

3.1.2 Peanut Roasting Machine

Fig 3(b) Peanut Roaster

This machine is very helpful to roast peanuts and maintain the main form of peanut nut and its
color. We chose this machine because we never compromise with our quality and we ensure
that the quality of roasted peanutswould be as per consultant requirement with the low cost.

Features:
• Longer service life
• Superior performance
• User-friendly

3.1.3 Color Sorter Machine for Peanuts

Fig 3© Colour Sorter machine

 14

Color sorter machine is used for the color of the peanut and its nut. We used this color sorting
machine in the plant for only roasted peanuts and for assorted Chikki.

3.1.4 Sizing shaker machine

Fig 3(d) Size Shaker

Sizing shaker machine is helpful to separate a peanut by the nut size and remove a small and
scrap peanut. This machine helps to separate small, medium and large peanuts. This machine
is required in our plant for separate peanuts like large for roasted, small for peanut butter soon.
 15

3.1.5 Peanut Butter Grinding Machine

Fig 3(e) Grinder

Peanut Butter maker machine is directly grinding peanuts. This machine is user-friendly,
resistant to wear & tear and offers effective performance. This machine ensures operations
under hygienic parameters and is used for making peanut butter in the food industry.
Features:
• Maintains hygiene
• Resistant to wear and tear
• Effective performance

Specifications:
Model: Gms130 peanut butter machine
Capacity: 250 to 500 kg/h
Power: 11kw/220v/50hz/3-phases/2900rpm
Size: 1000x440x1050 mm
Net weight: 420 kg

3.2 Utilities

Power requirement shall be 3000 kw whereas water of around 1000 Itrs. shall be required for potable
and sanitation. The cost of utilities suppose to be 486000/- Rs.
 16

4 Financial Analysis:

4.1 Raw Materials

The most important raw material shall be good quality peanuts. Availability would not be a
problem as monthly requirement even at 100% utilisation would be just 165 tones. But care has to
be taken to select peanuts with uniform size and minimum moisture. Requirement may not warrant
direct procurement from the groundnut processor (due to low quantity) and hence the trader has to
be selected carefully as high moisture content reduces shelf life of the peanut and may result in
high level of aflatoxin which is harmful to human beings in the long run. Standard packing would
be initially 500gm bottle for peanut butter.

4.2 Manpower Requirements

Particulars Nos. Monthly Salary (Rs.) Total Monthly Salary

(Rs.)

Supervisor 2 15000 30000

Skilled Worker 3 20000 60000

Helpers 3 9000 27000

Sales Man 3 10000 30000

Storekeeper 1 12000 12000

Gatekeeper 2 8000 16000

Total 1,75,000

Table No. 4 (a) Manpower Requirement in Industry

 17
4.3 Implementation Schedule

S.N. Activity Time Required

(in Months)
1 Acquisition Of premises 1

2 Procurement & installation of Plant & Machinery 1-2

3 Arrangement of Finance 1-2

4 Requirement of required Manpower 1

Total time Required (some activities shall run 3-4 Months

concurrently)
Table No. 4(b) Time Required in Implementation

4.4 Esteemed Cost of Project

Building

A land and Building Would cost Rs 2.50 and Rs. 12.00 Lacs as Stated earlier.

Machinery

For the installed Production Capaciy of 165 tons Per Year, Investment in Machinery will be Rs. 11.00 lacs
as Explained Earlier.

Miscellaneous Assets

A provision of Rs. 4.43 Lacs is sufficient Under This Head as Described earlier.

Preliminary & Pre-operative Expenses

Pre-production expenses like registration, establishment and administrative charges, interest during
implementation, trial runs etc. may cost Rs. 2.58 Lacs.

Working Capital Requirements

Capacity utilisation in the first year is assumed to be 100% for which following working capital shall
be required 12.83 Lacs.
 18

4.5 Cost of the Project & Project & Means of Financing (Rs. In lacs)

Project components & specifications Cost (In Lacs)

Land and Land development 2.50

Buildings and civil works 12.00
Plant and machinery 11.00
Miscellaneous and other fixed assets 4.42

Preliminary and pre-operative 2.58

Provision for contingencies 1.52

Total Fixed Assets 34.02
Margin for working capital 12.83
Estimated capital cost of project 46.85

Means of finance
Promoter’s contribution (Equity) 9.37

Term loan (Debt) (80% of cost of project) 37.48

Total 46.85
Table No. 4(c) Cost of Project Components

Utilities

Yearly cost of utilities at 100% will be Rs. 4,86,000-

Selling Expenses

A provision of 22.5% of sales revenue every year is made which would take care of margins of stockists
and retailers, transportation costs and some publicity at retail counters.

Interest

Interest on term loan of Rs. 37.48 lacs is computed @ 12% per annum assuming repayment in 3 year
Interest on working capital of Rs. 12.83 lacs from bank is calculated @ 14% per annum.
 19

Depreciation

It is calculated on WDV basis @ 10% on building and 20% on machinery and miscellaneous assets.

Entities Calculation Amount (INR)

Building 10% of the Cost of Building 1,20,000.00

Plant and Machinery, 20% of the Cost of Machinery and Equipment 2,20,000.00
Utilities, and another
fixed asset
Total per annum 3,40,000.00

Table No. 4(d) Dipreciation of Entities

Sales Revenue at 100%

Assuming Selling price of 500 grams per Bottle of peanut Butter would be Rs. 298, Annual Income of
Peanut Butter would be 8.85Cr

➢ Miscellaneous expenses (0.5% of yearly sales) = 4,42,500.00

➢ Interest on term loan (yearly) (12%) = 37,48,000.00
➢ Interest on margin money working capital Bank limit (yearly) (14%) = 12,83,000.00
➢ Total cost of production (yearly)= 12,12,53,500.00
 20
4.6 Break Even Point at 70% capacity

Particulars Fixed Cost Variable Cost

Raw Material 69,53,800.00

Salary and Wages (40% ) 70,000.00 1,05,000.00

Utilities (30% ) 1,45,800.00 3,40,200.00

Admin and selling Expenses (50% ) 80,49,000.00 80,49,000.00

Repair and Maintenance (50% ) 1,15,000.00 1,15,000.00

Insurance 700000.00

Depreciation 3,40,000.00

Interest on Term loan 37,48,000.00

Interest on Working Capital 12,83,000.00

Total 1,31,67,800 1,68,46,000.00

Total (Fixed Cost + 30,01,13,800.00

Variable Cost)
Table No. 4(e) Break Even Point of Project

• Sales at 70% Capacity utilisation and Rs 1,61,72,160.00

• Break Even point calculation = [Fixed Cost / (Sales – Variable Cost)] * Percentage Utilization
• Break Even Point = 34.5%
 21
4.7 Projected Profitability

PROJECTED (in Lacs)

PROFITABILITY
STATEMENT
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Capacity Utilization % 40% 45% 50% 55% 60%

SALES

Gross Sale

Peanut Butter 100.50 122.36 142.82 165.03 189.08

Total 100.50 122.36 142.82 165.03 189.08

COST OF SALES

Raw Material Consumed 86.40 102.06 119.16 137.81 157.68

Electricity Expenses 1.44 1.66 1.90 2.19 2.41

Depreciation 1.16 0.99 0.84 0.72 0.62

Wages & labour 5.16 5.68 6.24 6.87 7.55

Repair & maintenance 1.91 2.69 3.14 3.63 3.78

Cost of Production 96.07 113.07 131.29 151.22 172.04

Add: Opening Stock /WIP - 3.20 3.77 4.38 5.04

Less: Closing Stock /WIP 3.20 3.77 4.38 5.04 5.73

Cost of Sales 92.86 112.50 130.69 150.55 171.35

GROSS PROFIT 7.64 9.85 12.13 14.47 17.73

Salary to Staff 0.84 0.92 1.02 1.12 1.23

Interest on Term Loan 0.59 0.52 0.37 0.23 0.08

Interest on working Capital 0.44 0.44 0.44 0.44 0.44

Table No. 4(f) Projected Profitability

 22
4.8 Projected Cash Flow

PROJECTED CASH FLOW (in Lacs)

STATEMENT
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

SOURCES OF FUND

Own Margin 3.34

Net Profit 1.63 2.90 4.68 6.21 8.74

Depreciation & Exp. W/off 1.16 0.99 0.84 0.72 0.62

Increase in Cash Credit 4.00 - - - -

Increase In Term Loan 6.03 - - - -

Increase in Creditors 2.88 0.52 0.57 0.62 0.66

Increase in Provisions & Othlib 0.50 0.13 0.13 0.15 0.18

TOTAL : 19.54 4.54 6.21 7.71 10.20

APPLICATION OF FUND

Increase in Fixed Assets 8.04

Increase in Stock 6.08 1.09 1.18 1.29 1.36

Increase in Debtors 3.02 0.66 0.61 0.67 0.72

Repayment of Term Loan 0.67 1.34 1.34 1.34 1.34

Drawings 1.00 1.75 2.75 4.25 5.50

Taxation - - - 0.13 0.45

TOTAL : 18.81 4.83 5.88 7.67 9.37

Opening Cash & Bank

Balance Add : Surplus

- 0.73 0.43 0.77 0.81
Closing Cash & Bank Balance 0.73
(0.30) 0.33 0.04 0.83
0.73
0.43 0.77 0.81 1.63

Table No. 4(g) Projected Cash Flow

 23
4.9 Projected Balance Sheet

(in Lacs)
PROJECTED BALANCE
SHEET
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Liabilities

Capital
opening balance 3.97 5.13 7.05 8.89

Add:- Own Capital 3.34

Add:- Retained Profit 1.63 2.90 4.68 6.09 8.29

Less:- Drawings 1.00 1.75 2.75 4.25 5.50

Closing Balance 3.97 5.13 7.05 8.89 11.67

Term Loan 5.36 4.02 2.68 1.34 -

Working Capital Limit 4.00 4.00 4.00 4.00 4.00

Sundry Creditors 2.88 3.40 3.97 4.59 5.26

Provisions & Other Liab 0.50 0.63 0.75 0.90 1.08

TOTAL : 16.71 17.17 18.45 19.72 22.01

Assets

Fixed Assets ( Gross) 8.04 8.04 8.04 8.04 8.04

Gross Dep. 1.16 2.14 2.99 3.71 4.33

Net Fixed Assets 6.88 5.90 5.05 4.33 3.71

Current Assets

Sundry Debtors 3.02 3.67 4.28 4.95 5.67

Stock in Hand 6.08 7.17 8.35 9.63 10.99

Cash and Bank 0.73 0.43 0.77 0.81 1.63

TOTAL : 16.71 17.17 18.45 19.72 22.01

Table No. 4(h) Projected Balance Sheet

 24

5 Limitations of the Model DPR

• This model DPR has provided only the basic standard components and methodology to be adopted
by an entrepreneur while submitting a proposal under the Formalization of Micro Food Processing
Enterprises Scheme of MoFPI.

• This is a model DPR made to provide a general methodological structure not for specific
entrepreneurs/crops/locations. Therefore, information on the entrepreneur, forms and
structure(proprietorship/partnership/cooperative/FPC/joint stock company) of his business, details
of proposed DPR, project location, raw material base/contract sourcing, entrepreneur's own
analysis, detailed market research, the rationale of the project for a specific location, community
advantage/benefit from the project, employment generation and many more detailed aspects not
included.

• The present DPR is based on certain assumptions on cost, prices, interest, capacity utilization,
output recovery rate and so on. However, these assumptions in reality may vary across places,
markets and situations; thus the resultant calculations will also change accordingly

STEAM JET EJECTOR

Fig 5(a) Steam Jet Ejector

● Jet ejector is a kind of vacuum pump that does not use moving parts.

● The main function of the ejector is to extract air and non-condensate gases from a closed
system. It removes air from the condenser and provide a vacuum.

● In jet ejectors the fluid to be moved is entrained in the high-velocity stream of a second
fluid.

● The second fluid is known as motive fluid, which can be the same as the fluid which is to
be moved.

● When steam is used as a second fluid then the jet ejector will be called steam jet ejector.
 25

5.1 Principle

Vacuum Ejector work on the principle of Bernoulli’s equation. The operating principle of the ejector is
that pressure energy in the motive fluid is converted to velocity energy by an adiabatic expansion in the
Converging/Diverging Nozzle. Due to the pressure drop of the motive fluid, it will create a low-pressure
zone before the mixing chamber. Due to the low-pressure zone, the suction fluid will start to move toward
it and mix with motive fluid in the mixing chamber. In mixed fluid enter the diverging portion of the
ejector where its velocity energy is converted into pressure energy

5.2 Application

1. Vacuum Creation
2. Evacuation of Condensers
3. Distillation and Rectification
4. Deaeration of Feedwater
5. Air Pollution Control
6. Crystallization Processes
7. Water Desalination

5.3 Construction of assembly

• Nozzle Assembly: High-pressure steam enters through a convergent-divergent nozzle.

• Diffuser: Steam expands in the diffuser, converting kinetic energy into pressure energy, creating
low pressure.
• Mixing Chamber: High-velocity steam interacts with gases or vapours to be removed, entraining them.
• Condensing Section (optional): Some applications include a section to cool and condense the mixture,
separating gases or vapours from steam.
• Discharge Section: Remaining steam and non-condensable gases/vapours are discharged.
• Materials of Construction: Typically stainless steel or corrosion-resistant alloys.
• Supporting Structure: Provides stability and holds components together.

Fig 5(b) Construction of System

 26

Steam ejector dimension Size (mm)

Inlet diameter of the primary nozzle 10.00

Throat diameter of the primary nozzle 4.00

Outlet diameter of the primary nozzle 7.00

Length of the converging part of the primary

nozzle 17.00

Length of the diverging part of the primary nozzle 28.62

Inlet diameter of the mixing chamber 16.00

Length of the mixing chamber 45.79

Diameter of the constant section 14.60

Length of the constant section 54.00

Outlet diameter of the diffuser 24.00

 27
Length of the diffuser 134.59

Table No. 5(c) Steam Ejector Dimension

5.4 Mathematical model

Navier-Stokes equations are used to govern the steam ejector flows. The Stokes number, Stk, is
a dimensionless number characterising the behaviour of droplets suspended in fluid flows:

(1)

where ρp and dp are the droplet density and diameter, μ is the dynamic viscosity, u is the fluid
velocity and l0 is the characteristic dimension.

[ In supersonic condensation, droplet diameter is typically less than 0.1 μm at low-pressure

conditions. Using a diameter of 0.1 μm, the Stokes number is calculated to be 0.0054, indicating
droplets closely follow fluid streamlines. Assumptions include a maximum steam velocity of 1420
m/s, water density of 1000 kg/m³, steam dynamic viscosity of 0.01 × 10⁻³ Pa s, and a characteristic
dimension of steam ejectors' constant section diameter, 14.60 mm. This governs phase change
processes within steam ejectors, where no-slip phase velocities are employed in numerical
simulations.]

Continuity equation:

Momentum equation:

Energy equation:
 28

Liquid fraction transport equation:

(5)
Droplet number transport equation:

(6)

where Г presents the mass generation rate due to: the condensation process:

The nucleation rate, J, adopts modified classical nucleation theory:

The droplet growth rates are predicted by Young's model:

Turbulent Intensity:
 29

5.5 Steam Calculation Formula

Shown below is the formula used to determine the steam flow through an ejector’s motive nozzle.

Motive Pressure = Pressure of motive at inlet to ejector (psia)

Specific Volume = Specific Volume (ft3/lbm)
(function of motive temperature and pressure)
d = Motive Nozzle Throat Diameter (inches)
C = Orifice Discharge Coefficient
(typically 0.97 for an orifice with a well-rounded inlet)

This formula can be used to calculate the motive steam flow through an ejector given a set of conditions.
It’s best to measure the motive steam pressure and temperature at the equipment with good
calibrated instruments.

5.6 Steam Calculation for our Equipment

Motive Pressure = 100 psig (114.7 psia)

Motive Temperature = 338 ºF dry & saturated
Specific Volume at 338 ºF = 3.9 (ft^3/lb)
Nozzle Throat Diameter = 0.375 inches
(can be obtained from the manufacturer)

Calculated Steam Flow = 660 lb/hr

 30

References

1- B.S.Shah Prakashan "Financial Management". Seventh Edition:2009-2010. Working

Capital Management From 72 page no.
2- Prasanna Chandra. "Financial Management", Sixth Edition. By Tata McGraw-Hill
Publishing Company Limited New Delhi. Part VIII 26. Working Capital Policy,

1- https://www.peanutbuttere.com/cases/peanut-butter-processing-flow-chart.html
2- https://www.peanutbuttermachine.com/technicals/matters-you-should-pay-attention-to-in-peanut-bu
3- https://www.cropino.com/what-is-peanut-butter/
4- https://www.nutmachines.com/blog/peanut-butter-production-process.html
5- https://docs.google.com/document/d/1JWKtBSjUvmJheYzN2FLaI0kQJI_H_S6ERgoBM2nqUOo/e
6- https://www.savorysuitcase.com/peanut-butter-production-methods/
7- https://www.niftem.ac.in/site/pmfme/processingnew/peanutbutterprocessing.pdf

8- http://www.dgr.org.in/

9- http://apeda.gov.in/apedawebsite/

10- www.nabard.org/

11- http://www.fssai.gov.in/

12- www.agri.gujarat.gov.in/index.htm

13- www.gidc.gov.in/

14- www.ic.gujarat.gov.in