“PROTIEOVITA

”
........SMART FOOD
FOR SMART
PEOPLE
Detailed Project
Report_commercial
spirulina production
unit
What is Spirulina?
 Spirulina is cyanobacteria (blue-green algae) which
are amongst the oldest life forms on the earth
capable of producing oxygen. It is considered
a ‘superfood’ and one of the most nutrient-rich foods
on the planet.
 There are mainly two species of Spirulina which gets
cultivated are Arthrospira plantensis and Arthrospira
maxima.
 Spirulina is a multicellular and filamentous blue-green
microalga that grows naturally in the alkaline waters
of lakes, ponds and artificially in manmade water
reservoirs. It represents a biomass of microorganisms
that can be consumed by humans and other animals.
 Spirulina has been used as food for centuries; it was a
food source for the Aztecs and other Mesoamericans
until the 16th century and is rediscovered for its rich
nutrient content, uses as a biofuel and for natural
color production.
Advantages of Spirulina based products
over conventional products
 Spirulina is considered as an excellent food, lacking toxicity, with
anticancer, antiviral, immunological properties and it also acts as
a potent antioxidant.
 High on nutrient content than conventional nutrition
such as meat, milk, and plant-based supplements.
 Spirulina is considered as the most complete food,
where conventional sources lack many nutrients.
 Colors produced from Spirulina are natural and have
various applications in food and beverages.
 Spirulina is used to produce biofuel, which is way
affordable and environment-friendly than the non-
renewable fuels.
 Production of Spirulina is easy and has zero carbon
footprint on the environment.
 INDUSTRY OUTLOOK AND TRENDS
✓ Increasing health consciousness among millennials,
demand for a plant-based diet and need for easy and fast
nutrition as paved way for Spirulina market to flourish.
✓ high potential in domestic and
export market, industrial out-look for this industry is very good and
promising high growth trends.
✓ The global Spirulina market is expected to witness a CAGR
of 10% during the forecasted period and is estimated to be
valued USD 2000 Mn by 2026, from more than the USD 700
Mn in 2016
RAW MATERIALS REQUIREMENT
 Mother culture of the selected spirulina
 As Spirulina is found is freshwater ponds and lakes so water from
ponds/artificial manmade structures to culture Spirulina.
 Materials like N.P.K fertilizers, super phosphate, and magnesium
sulphate.

MANPOWER REQUIREMENT
The project will require production manager, Chemist, Skilled and unskilled
workers, packaging workers, and other administrative staff.
MANUFACTURING PROCESS
The manufacturing consists of:
1) Cultivation 2) harvesting and 3) Processing
CULTIVATION :
✓ Selected strains of algae are used for cultivation in constant agitation of
water. This is an important parameter in the cultivation of spirulina.
Agitation of algae culture is necessary to keep nutrients evenly
dispersed and also to expose all the cells to sunlight.
HARVESTING :
✓ The algal biomass is carefully harvested using specially made filters to
recover the biomass.
PROCESSING :
✓ The harvested biomass is dried using the cross flow drier.
The produce obtained is in the form of flakes. It is ground in the pulveriser
to get the powder of the desired mesh size.
✓ To get an optimal yield, maintenance of required nutrient level, cell
density,culture depth etc., are some of the critical parameters in the process of
spirulina cultivation.

✓ The yield of spirulina is expressed as grams per cubicmetre per day. S

Quality Specifications
Particulars Percentages
 Moisture 3%
 protein 65%
 Fat 7%
 Crude fibre 9%
 Carbohydrates 16%
 Energy 346 K Cal / 100grams
 Mold and fungus_absent

Packaging
Spirulina is packed as capsules. Around 50 or 100 capsules are packed in a
bottle and sold.
Manufacturing capacity
Cultivation - Three shifts, each of 8 hours duration Drying - one shift of 8 hours duration.
The yield of wet biomass per annum would be around 200 metric tonnes
which on drying will yield 10 tonnes of the dried product. The time period
required for achieving full capacity utilisation is one year.
 COST OF PROJECT
 Description Rs. lakhs
LIST OF MACHINERY REQUIRED
 Land -
 Building. 35.00
 No.Particulars Rs. Lakhs
 Plant machinery. 26.00  Paddle wheel and motors – 7 nos 3.00
 Laboratory equipment. 5.00  Vibratory sieve – 2 no 2.50
 Furniture and fixtures 5.00
 Cross flow type tray dryer – 2 no 3.90
 Ectrificationon and power
Connection 8.0
 Pulveriser – 2 no 1.50
 Machinery spares 4.00  Packing machine. 2.00
 Margin for working capital. 5.61  Water treatment plant. 6.00
 Total 88.61  Effluent treatment plant 7.00
 Total 26.00
MEANS OF FINANCE
Particulars. Rs. (lakhs)
 Laboratory equipment. 5.0
#Promoter's contribution 22.1525  Grandd total of machinery andequipment 31.00
#Bank Finance 66.4575
# Total 88.61
 WORKING CAPITAL CALCULATION PER MONTH

Description Rs. Stock Promoter Margin Amt Bank

lakhs Period Margin Finance
days
Salaries and 3.17 30 1 3.17 0
wages

Raw material 4.78 30 0.5 2.39 2.39

and packaging
material

Utilities 0.42 30 0.5 0.21 0.21

Creditors -0.4 30 0.4 -0.16 -0.24

Total 7.97 5.61 2.36

  PROFITABILITY CALCULATIONS
Particulars Year1 Year2 Year3 Year4 Year5
Sales/Gross 157.5 180 202.5 202.5 202.5
income
Raw materials 11.62 13.28 14.94 14.94 14.94
and other
variable costs
Contribution 145.88 166.72 187.56 187.56 187.56
Overheads (except 69.16 79.04 88.92 88.92 88.92
interest)
Profit before 76.72 87.68 98.64 98.64 98.64
Interest,
Depreciation &
Tax
Interest on term 7.05 6.27 5.22 4.18 3.13
loans (11%)
Profit before 69.67 81.41 93.42 94.46 95.57
depreciation
Depreciation 5.18 5.92 6.66 6.66 6.66
Profit before tax 64.49 75.49 86.76 87.8 88.85
(PBT)
 Year1 Year2 Year3 Year4 Year5
Income Tax 19.34 22.647 26.025 26.34 26.655
(30%)
Profit after 45.143 52.843 60.732 61.46 62.195
tax

Underlying assumptions for probability calculation are:-

Raw material cost is taken at Rs. 8000 per MT of wet Bio – Mass. Sales
price is assumed at Rs. 20,000 per MT. cost of power is taken at Rs. 8 per
unit. Interest rate on long term loan is assumed at 11%.

BREAK-EVEN ANALYSIS
Cash Break-Even (as % of Targeted sales)
ParticularsValue (Rs. In lakhs) Year-1
✓Sales Realization (SR) 225
✓Variable costs (VC) 16.6
✓ Fixed costs (FC) incl. Interest. 98.8
✓BEP = FC/SR-VC x 100 = 47.4%
 STRENGTHS
✓ wide range of health benefits
✓ zero side Effects after consumption
✓ Affordable price of the product
✓ less equipment and machinery needed
✓ no carbon footprints in the production process
✓ suitable for start up at low cost capital
Weakness
✓ large area required to produce in large quantities
✓ more working hours required
✓skilled workers needed for some special operations
✓ building up the large area of ecosystem for the selected variant of
spirulina with suitable conditions
✓ being a suppliment rather than food people preference will be less in
comparison to taste.

Opportunities
✓ rapid growth in the trends of health care due to
sudden outbreak of pendamic
✓ affordable suppliment in the market which can reach
its daily dietary requirement .
✓ can remove the malnutrition in people living poverty
✓ many of health issues can be solved when they
receive daily dietary requirements with proteins and
vitamins...(Proteiovita)
Threats
✓ some toxic residues can be found when the ponds are
infected with molds or any fungus
✓ market is flooded with wide range of spirulina
products Where it is difficult to differentiate the quality
standards
✓ Even small changes in the product quality will
reduce its price in a drastic way.
Many thanks 🍁
Submitted by :
Shaik Salman NA-17-118