PROJECT REPORT

Of

ENERGY FOODS

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Energy Foods making Unit.

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project
identification for investment and in order to serve his objective; the document covers various aspects
of the project concept development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement. We can also prepare
project report on any subject as per your requirement.]

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Delhi Office : Multi Disciplinary Training

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New Delhi 110002

Email : info@udyami.org.in
Contact : +91 7526000333, 444, 555
 PROJECT REPORT
ON
‘ENERGY FOODS’

PRODUCT AND APPLICATIONS

Health awareness is fast growing and people are taking to such energy supplements
to overcome ageing, tiredness, fatigue and general breakdown of the system.
Various supplements are available in the market to lower fats increase stamina etc.
People are very conscious of Cholesterol level in blood and avoid fatty foods. They
are very selective of their diet and there is marked preference for low calorie high
protein food supplements. The energy foods available in market are costly and
beyond the reach of common man. Children are yet another group for cheap energy
foods.
The technology for such foods has been developed by CFTRI.
India’s rural population is subject to three common forms of nutritional deprivation: 1.
Inadequacy of food intake among the poorer segment leading to calorie deficiency 2.
The extra nutritional need of infants and preschool children 3. Deficiency of specific
micronutrients such as Vitamin A and iron
Energy food is prepared from easily available ingredients like wheat, gram dal,
jiggery, edible ground nut cake, minerals and vitamins. It is a ready to eat food item
and does not require extensive cooking. Depending upon individuals tastes some
milk or water can be added. It can also be used with other material while making
food items like halwa, chapatti etc.
MARKET POTENTIAL
Urban market is targeted by the costly variety of energy foods which are generally beyond
the reach of semi urban and rural population. A large market exists for such products in rural
and semi urban areas. With greater health awareness and contamination of raw vegetables
due to pesticides and other chemical fertilizers people prefer diet foods. Thus easy
availability at reasonable price provides a large market with the vast rural and semi urban
population.

MANUFACTURING PROCESS & KNOW HOW

The process of manufacturing is not very complicated. Cleaned wheat is roasted in a roaster
bin to brown colour and then ground in a hammer mill. Similarly gram dal and edible ground
nut cake are also roasted and ground. Next jiggery is mixed with calcium carbonate and
wheat flour and processed in multi mill to obtain coarse flour. Finally are the ingredients
along with pre-mixed minerals and vitamins are thoroughly mixed and packed. A typical mix
could be 60% wheat flour, 10% gram dal, 10% edible ground nut cake, 15-16% jiggery and
balance calcium carbonate and vitamins. Quality control is a must.
The process flow chart is as under

Know how is available with Central Government research Laboratories. The machinery is all
indigenously available.
The production capacity envisaged is 200 tonnes per annum on two shift basis for 330 days
per year.
 PLANT AND MACHINERY

Rs in Lac
Electrically operated roaster 1 2.50
Hammer Mill 1 0.82
Multi mill. 1 0.65
Homogeniser 1 0.95
Sieves, SS utensils LS 0.50
Weighing scales
1 0.20

Installation/Electrification .38
Total 6.00
The total cost of machinery is estimated to be Rs.6.00 lakhs.
The unit will also require miscellaneous assets such as furniture, fixtures, storage facilities
etc.
The total requirement of power shall be 30 HP, the unit will need 1000 lits of water daily.

RAW MATERIAL AND PACKING MATERIAL

The basic raw materials for the unit are good quality wheat, gram dal, edible ground nut
cake, jiggery are all available locally. Major requirement is that of wheat and for which
advance bulk procurement shall have to be made. Printed polythene bags and packing
cartons are the basic packing material required.
On an average the raw material cost has been estimated to be Rs.180 lakhs at 100%
capacity utilization.

LAND AND BUILDING

For smooth operation of the unit, it will require 250 sq. mts of open land and a built up area
of 150 sq. Mts. The building is taken on rent .

FSSAI LICENSE: FSSAI License is issued by the Food Safety and Standards
Authority of India (FSSAI), Ministry of Family Health & Welfare, Government of
India. Application to commence a food business must be made to the FSSAI in the
prescribed format. Based on the application and supporting documents, FSSAI will
accord approval. The Food Safety and Standards (Licensing and Registration of
Food Businesses) Regulations 2011 introduced to improve the hygiene and quality
of food has brought about tremendous changes in the food industry. As per the
Act, no person shall commence or carry on any food business except under a
FSSAI license or FSSAI registration. Therefore, any food manufacturing or
processing or packaging or distributing entity is now required to obtain a FSSAI
License or Registration.
 PROJECT AT A GLANCE

1 Name of the Entreprenuer XXXXXXX

2 Constitution (legal Status) XXXXXXX

3 Father's/Spouce's Name XXXXXXXX

4 Unit Address : XXXXXXXX

Taluk/Block:
District : XXXXX
Pin: XXXXX State:
E-Mail : XXXXX
Mobile XXXXX

5 Product and By Product : Energy Foods

6 Name of the project / business activity propose Energy Foods

7 Cost of Project : Rs22.20lac

8 Means of Finance
Term Loan Rs.9.21 Lacs
KVIC Margin Money - As per Project Eligibility
Own Capital Rs.2.22 Lacs
Working Capital Rs.10.77 Lacs

9 Debt Service Coverage Ratio : 4.49

10 Pay Back Period : 5 Years

11 Project Implementation Period : 6 Months

12 Break Even Point : 28%

13 Employment : 6 Persons

14 Power Requirement : 30.00 HP

15 Major Raw materials : t, gram dal, edible ground nut cake, jaggery

16 Estimated Annual Sales Turnover : 129.96 Lacs

16 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lacs)

Particulars Amount
Land Rented/Owned
Building & Civil Work (2000 Sq Ft) 3.00
Plant & Machinery 6.00
Furniture & Fixtures 0.73
Pre-operative Expenses 0.50
Working Capital Requirement 11.97
Total 22.20

MEANS OF FINANCE
Particulars Amount
Own Contribution @10% 2.22
Term Loan 9.21
Workign Capital Finance 10.77

Total 22.20

General Special
Beneficiary's Margin Money 10% 5%
(% of Project Cost)
PLANT & MACHINERY

PARTICULARS QTY. RATE AMOUNT IN RS.

Electrically operated roaster 1.00 250000.00 250000.00

Hammer Mill 1.00 82000.00 82000.00
Multi mill. 1.00 65000.00 65000.00
Homogeniser 1.00 95,000.00 95,000.00
Sieves, SS utensils 1.00 50,000.00 50,000.00
Weighing scales 1.00 20,000.00 20,000.00
Installation /electrification 38,000.00
Total 600,000.00
PROJECTED CASH FLOW STATEMENT

PARTICULARS IST YEAR IIND YEAR IIIRD YEARIVTH YEAR VTH YEAR

SOURCES OF FUND

Share Capital 2.22 -

Reserve & Surplus 8.59 10.40 13.05 15.61 18.08
Depriciation & Exp. W/off 1.24 1.10 0.96 0.83 0.72
Increase in Cash Credit 10.77 - - - -
Increase In Term Loan 9.21 - - - -
Increase in Creditors 5.40 0.90 0.90 0.90 0.90
Increase in Provisions 0.36 0.04 0.04 0.04 0.05

TOTAL : 37.78 12.44 14.94 17.38 19.74

APPLICATION OF FUND

Increase in Fixed Assets 9.73 - - - -

Increase in Stock 10.87 - 1.55 1.33 1.33 1.33
Increase in Debtors 6.50 1.43 1.14 1.14 1.14
Increase in Deposits & Adv 2.50 0.25 0.28 0.30 0.33
Repayment of Term Loan - 2.30 2.30 2.30 2.25
Taxation - 1.04 2.61 3.12 3.62

TOTAL : 29.60 3.47 7.66 8.20 8.67

Opening Cash & Bank Balance - 8.18 17.15 24.44 33.62

Add : Surplus 8.18 8.97 7.28 9.18 11.07

Closing Cash & Bank Balance 8.18 17.15 24.44 33.62 44.69
PROJECTED BALANCE SHEET

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

SOURCES OF FUND

Capital Account 2.22 2.22 2.22 2.22 2.22

Retained Profit 8.59 17.95 28.38 40.87 55.33

Term Loan 9.21 6.91 4.60 2.30 0.05

Cash Credit 10.77 10.77 10.77 10.77 10.77
Sundry Creditors 5.40 6.30 7.20 8.10 9.00
Provisions & Other Liab 0.36 0.40 0.44 0.48 0.53

TOTAL : 36.55 44.54 53.61 64.74 77.90

APPLICATION OF FUND

Fixed Assets ( Gross) 9.73 9.73 9.73 9.73 9.73

Gross Dep. 1.24 2.34 3.30 4.12 4.84
Net Fixed Assets 8.49 7.39 6.43 5.61 4.89

Current Assets
Sundry Debtors 6.50 7.92 9.06 10.20 11.34
Stock in Hand 10.87 9.32 10.66 11.99 13.32
Cash and Bank 8.18 17.15 24.44 33.62 44.69
Deposits & Advances 2.50 2.75 3.03 3.33 3.66

TOTAL : 36.55 44.54 53.61 64.74 77.90

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

A) SALES
Gross Sale 129.96 158.46 181.26 204.06 226.86

Total (A) 129.96 158.46 181.26 204.06 226.86

B) COST OF SALES

Raw Mateiral Consumed 108.00 126.00 144.00 162.00 180.00

Elecricity Expenses 4.73 5.52 6.31 7.10 7.88
Repair & Maintenance - 1.58 1.81 2.04 2.27
Labour & Wages 3.43 3.78 4.15 4.57 5.02
Depriciation 1.24 1.10 0.96 0.83 0.72
Consumables and Other Expense 2.60 3.17 3.63 4.08 4.54
Cost of Production 120.00 141.15 160.85 180.61 200.43

Add: Opening Stock /WIP - 5.47 6.38 7.30 8.21

Less: Closing Stock /WIP 5.47 6.38 7.30 8.21 9.12

Cost of Sales (B) 114.53 140.24 159.94 179.70 199.52

C) GROSS PROFIT (A-B) 15.43 18.22 21.32 24.36 27.34

12% 11% 12% 12% 12%
D) Bank Interest (Term Loan ) 0.79 0.96 0.69 0.43 0.17
Bank Interest ( C.C. Limit ) 1.08 1.08 1.08 1.08 1.08
E) Salary to Staff 2.38 2.61 2.87 3.16 3.48
F) Selling & Adm Expenses Exp. 2.60 3.17 3.63 4.08 4.54

TOTAL (D+E) 6.85 7.82 8.27 8.75 9.26

H) NET PROFIT 8.59 10.40 13.05 15.61 18.08

I) Taxation - 1.04 2.61 3.12 3.62

J) PROFIT (After Tax) 8.59 9.36 10.44 12.49 14.46

COMPUTATION OF MANUFACTURING OF ENERGY FOOD

Items to be Manufactured ENERGY FOOD

Manufacturing Capacity per day - 1.00 MT

-
No. of Working Hour 8

No of Working Days per month 25

No. of Working Day per annum 300

Total Production per Annum 300.00 MT

Year Capacity MT
Utilisation
Less wastage 5%
IST YEAR 180 60% 171
IIND YEAR 210 70% 200
IIIRD YEAR 240 80% 228
IVTH YEAR 270 90% 257
VTH YEAR 300 100% 285

COMPUTATION OF RAW MATERIAL

Item Name Quantity of Recovery Unit Rate of Total Cost

Raw Material /MT Per Annum (100%)
MT
wheat, gram dal, edible ground nut
100% 300.00 100% 60,000.00 18,000,000.00
cake, jaggery

Total (Rounded off in lacs) 18,000,000.00

Annual Consumption cost ( In Lacs) 180.00

Raw Material Consumed Capacity Amount (Rs.)

Utilisation

IST YEAR 60% 108.00

IIND YEAR 70% 126.00
IIIRD YEAR 80% 144.00
IVTH YEAR 90% 162.00
VTH YEAR 100% 180.00
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

Finished Goods
(15 Days requirement) 5.47 6.38 7.30 8.21 9.12
Raw Material
(15 Days requirement) 5.40 2.94 3.36 3.78 4.20

Closing Stock 10.87 9.32 10.66 11.99 13.32

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Total
Amount
Stock in Hand 10.87

Sundry Debtors 6.50

Total 17.37
Sundry Creditors 5.40

Working Capital Requirement 11.97

Margin 1.20

Working Capital Finance 10.77

BREAK UP OF LABOUR

Particulars Wages No of Total

Per Month Employees Salary

Skilled Worker 8,000.00 2 16,000.00

Semi skilled Worker 5,000.00 2 10,000.00

26,000.00
Add: 10% Fringe Benefit 2,600.00
Total Labour Cost Per Month 28,600.00
Total Labour Cost for the year ( In Rs. Lakhs) 4 3.43

BREAK UP OF SALARY

Particulars Salary No of Total

Per Month Employees Salary

Accountant 8,000.00 1 8,000.00

Sales Representative 10,000.00 1 10,000.00
Total Salary Per Month 18,000.00

Add: 10% Fringe Benefit 1,800.00

Total Salary for the month 19,800.00

Total Salary for the year ( In Rs. Lakhs) 2 2.38

COMPUTATION OF DEPRECIATION

Description Land Building/shed Plant & Furniture TOTAL

Machinery

Rate of Depreciation 10.00% 15.00% 10.00%

Opening Balance Leased - - - -
Addition - 3.00 6.00 0.73 9.73
- 3.00 6.00 0.73 9.73
Less : Depreciation - 0.30 0.90 0.04 1.24
WDV at end of Ist year - 2.70 5.10 0.69 8.49
Additions During The Year - - - - -
- 2.70 5.10 0.69 8.49
Less : Depreciation - 0.27 0.77 0.07 1.10
WDV at end of IInd Year - 2.43 4.34 0.62 7.39
Additions During The Year - - - - -
- 2.43 4.34 0.62 7.39
Less : Depreciation - 0.24 0.65 0.06 0.96
WDV at end of IIIrd year - 2.19 3.68 0.56 6.43
Additions During The Year - - - - -
- 2.19 3.68 0.56 6.43
Less : Depreciation - 0.22 0.55 0.06 0.83
WDV at end of IV year - 1.97 3.13 0.51 5.61
Additions During The Year - - - - -
- 1.97 3.13 0.51 5.61
Less : Depreciation - 0.20 0.47 0.05 0.72
WDV at end of Vth year - 1.77 2.66 0.46 4.89
REPAYMENT SCHEDULE OF TERM LOAN 11.5%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

IST YEAR Opening Balance
Ist Quarter - 9.21 9.21 - - 9.21
Iind Quarter 9.21 - 9.21 0.26 - 9.21
IIIrd Quarter 9.21 - 9.21 0.26 - 9.21
Ivth Quarter 9.21 - 9.21 0.26 - 9.21
0.79 -
IIND YEAR Opening Balance
Ist Quarter 9.21 - 9.21 0.26 0.58 8.63
Iind Quarter 8.63 - 8.63 0.25 0.58 8.06
IIIrd Quarter 8.06 - 8.06 0.23 0.58 7.48
Ivth Quarter 7.48 7.48 0.22 0.58 6.91
0.96 2.30
IIIRD YEAR Opening Balance
Ist Quarter 6.91 - 6.91 0.20 0.58 6.33
Iind Quarter 6.33 - 6.33 0.18 0.58 5.75
IIIrd Quarter 5.75 - 5.75 0.17 0.58 5.18
Ivth Quarter 5.18 5.18 0.15 0.58 4.60
0.69 2.30
IVTH YEAR Opening Balance
Ist Quarter 4.60 - 4.60 0.13 0.58 4.03
Iind Quarter 4.03 - 4.03 0.12 0.58 3.45
IIIrd Quarter 3.45 - 3.45 0.10 0.58 2.88
Ivth Quarter 2.88 2.88 0.08 0.58 2.30
0.43 2.30
VTH YEAR Opening Balance
Ist Quarter 2.30 - 2.30 0.07 0.58 1.73
Iind Quarter 1.73 - 1.73 0.05 0.58 1.15
IIIrd Quarter 1.15 - 1.15 0.03 0.55 0.60
Ivth Quarter 0.60 0.60 0.02 0.55 0.05

0.17 2.25
CALCULATION OF D.S.C.R

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

CASH ACCRUALS 9.82 10.46 11.39 13.31 15.18

Interest on Term Loan 0.79 0.96 0.69 0.43 0.17

Total 10.62 11.42 12.09 13.74 15.35

REPAYMENT
Instalment of Term Loan 2.30 2.30 2.30 2.25 2.25
Interest on Term Loan 0.79 0.96 0.69 0.43 0.17

Total 3.10 3.26 3.00 2.68 2.42

DEBT SERVICE COVERAGE RA 3.43 3.50 4.03 5.13 6.35

AVERAGE D.S.C.R. 4.49

COMPUTATION OF SALE

Particulars IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

Op Stock - 9 10 11 13

Production 171 200 228 257 285

171 208 238 268 298

Less : Closing Stock 9 10 11 13 14

Net Sale 162 198 227 255 284

Sale Price per MT 80,000.00 80,000.00 80,000.00 80,000.00 80,000.00

Sale (in Lacs) 129.96 158.46 181.26 204.06 226.86

COMPUTATION OF ELECTRICITY
(A) POWER CONNECTION

Total Working Hour per day Hours 8

Electric Load Required HP 30
Load Factor 0.7460
Electricity Charges per unit 8.00
Total Working Days 300
Electricity Charges ( 8 Hrs Per day ) 429,696.00

Add : Minimim Charges (@ 10%)

(B) D.G. SET

No. of Working Days 300 days
No of Working Hours 2 Hour per day
Total no of Hour 600
Diesel Consumption per Hour 8
Total Consumption of Diesel 4,800
Cost of Diesel 65.00 Rs. /Ltr
Total cost of Diesel 3.12
Add : Lube Cost @15% 0.47
Total 3.59

Total cost of Power & Fuel at 100% 7.88

Year Capacity Amount

(in Lacs)

IST YEAR 60% 4.73

IIND YEAR 70% 5.52
IIIRD YEAR 80% 6.31
IVTH YEAR 90% 7.10
VTH YEAR 100% 7.88
BREAK EVEN POINT ANALYSIS

Year I II III IV V

Net Sales & Other Income 129.96 158.46 181.26 204.06 226.86
Less : Op. WIP Goods ‐ 5.47 6.38 7.30 8.21
Add : Cl. WIP Goods 5.47 6.38 7.30 8.21 9.12

Total Sales 135.43 159.37 182.17 204.97 227.77

Variable & Semi Variable Exp.

Raw Material & Tax 108.00 126.00 144.00 162.00 180.00

Electricity Exp/Coal Consumption at 85% 4.02 4.69 5.36 6.03 6.70
Manufacturing Expenses 80% 2.08 3.80 4.35 4.90 5.44
Wages & Salary at 60% 3.48 3.83 4.22 4.64 5.10
Selling & adminstrative Expenses 80% 2.08 2.54 2.90 3.26 3.63
Intt. On Working Capital Loan 1.08 1.08 1.08 1.08 1.08
Total Variable & Semi Variable Exp 120.74 141.94 161.91 181.91 201.96

Contribution 14.69 17.43 20.27 23.06 25.82

Fixed & Semi Fixed Expenses

Manufacturing Expenses 20% 0.52 0.95 1.09 1.22 1.36

Electricity Exp/Coal Consumption at 15% 0.71 0.83 0.95 1.06 1.18
Wages & Salary at 40% 2.32 2.56 2.81 3.09 3.40
Interest on Term Loan 0.79 0.96 0.69 0.43 0.17
Depreciation 1.24 1.10 0.96 0.83 0.72
Selling & adminstrative Expenses 20% 0.52 0.63 0.73 0.82 0.91
Total Fixed Expenses 6.10 7.03 7.22 7.45 7.74

Capacity Utilization 60% 70% 80% 90% 100%

OPERATING PROFIT 8.59 10.40 13.05 15.61 18.08
BREAK EVEN POINT 25% 28% 29% 29% 30%
BREAK EVEN SALES 56.27 64.29 64.90 66.26 68.26
 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN assume no
financial liability to anyone using the content for any purpose. All the materials and content
contained in Project report is for educational purpose and reflect the views of the industry
which are drawn from various research material sources from internet, experts, suppliers and
various other sources. The actual cost of the project or industry will have to be taken on case
to case basis considering specific requirement of the project, capacity and type of plant and
other specific factors/cost directly related to the implementation of project. It is intended for
general guidance only and must not be considered a substitute for a competent legal advice
provided by a licensed industry professional. SAMADHAN hereby disclaims any and all
liability to any party for any direct, indirect, implied, punitive, special, incidental or other
consequential damages arising directly or indirectly from any use of the Project Report
Content, which is provided as is, and without warranties.