Project Report For

MASALA MAKING UNIT

Promoter:

MR. xxxxxxxxxxxxxxxxxxxxxxx

Project Location:
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Prepared by:
Download Project Report.com
1187/67, Ground Floor, Gruhalaxmi,
J.M. Road, near Balgandharva Chowk,
Pune, Maharashtra 411005.
 Project For:
MASALA MAKING UNIT

CONTENT

CHAPTER NO. PARTICULAR

I. PROJECT AT A GLANCE

II. ABOUT THE PROJECT

III. PROFILE OF PROMOTER

IV. ECONOMICS OF THE PROJECT

A. TOTAL COST OF THE PROJECT & MEANS OF FINANCE
B. PROFITABILITY STATEMENT
C. CASH FLOW STATEMENT
D. BALANCE SHEET
E. CAPITAL ACCOUNT
F. INCOME
G. EXPENSES
H. FIXED ASSETS AND DEPRECIATION
I. TERM LOAN REPAYMENT AND INTEREST THEREON
J. WORKING CAPITAL
 Project For:
MASALA MAKING UNIT

I. PROJECT AT A GLANCE

1. About the Promoter : MR. xxxxxxxxxxxxxxxxxxxxxxxxx

Project Location: xxxxxxxxxxxxxxxxxx

2. Project Cost : Rs. 8.32 Lakhs

3. Mean of Finance
A) T. L. facility from Bank : Rs. 5.27 Lakhs

B) Beneficiary contribution : Rs. 0.83 Lakhs

C) C.C. facility from Bank : Rs. 2.23 Lakhs

D) Subsidy under PMEGP Scheme : Rs. 2.91 Lakhs

5. Rate of Interest : 11.00% Per Annum

6. Repayment : 60 monthly instalments, EMI @ 0.11 Lakhs

7. Nature of Project : Masala Making Unit

8. Employment Potential : 2 Nos

9. Nature of the Firm : Proprietary Firm

10. Average Debt Coverage ratios : 2.00

 Project For:
MASALA MAKING UNIT

II. ABOUT THE PROJECT

India is the Land of Spices. The country produces at present 2 milloin tonnes of
different varieties of spices and holds first position in the world. It requires the simple
grinding and formulation as per the region's taste and flavours. Any entrepreneur who
had basic sense of taste and flavour and little bit of market knowledge may be very
successful in setting up of this unit.

Required Raw Material

Ungrounded spices are the basic ingredients used in spice powder, and you will need
packaging materials along with raw materials to secure the spice powder.

Usage of Machinery
Depending on the scale of industries that the equipment is used, grinding machines are
essential machinery required in the spice industry. Large-scale industries use the
machine Impact Pulverizer, whereas small-scale industries use the Pulverizer Double
Stage.

Another machinery is also needed, such as a spice grinder, weighing scale, packaging
machine, roaster, and compressor.

Manufacturing Process of Spices

Cleaning
It is the very first spice making method in which the ungrounded spices are manually
washed by removing impurities such as stone, dust, and dirt.

Drying
The consistency of the spice powder will rely on the well-dried spice just after the
cleaning and washing process, showing them in sunlight so that they can dry. If there is
no good cleaning and washing, it will result in the growth of bacteria that will poison
food.

Roasting
When spices are dried, they go through the roasting process as the roasting of the
spices is important because it will help give the spice powder the scent, color, and good
taste.

Grinding
For pulverizing, grinding machines are used to turn the spices into powder form.

Grading
Grading is a process that depends on the form of spices (flavor), density, shape, size,
and color, and is the basis for the inclusion and proportion of spices combined with the
raw material used.

Sieving
Ensure that the spice powder has a consistent mesh size.
 Project For:
MASALA MAKING UNIT
Spice packaging

Seasoning and spices add tremendous flavor to your favorite dishes, but they must be
new to work their magic; thus, proper packaging is compulsory.

With stand-up pouches with zip locks, secure and maintain your spices and seasonings
and such packaging bags will give you the flexibility to choose the right size, design, and
features for your spices. Choose among options such as gas release valves, tear
notches, heavy-duty zipper tops, hang holes, pour spouts, and various designs that give
you plenty of space to bring your brand to life.

Once the spice is converted to powder form, the spice powder is weighted according to
the volume that needs to be packaged. With the aid of the sealing machine, the spices
are then wrapped in a polythene bag and sealed.

By standing up, your spices will be covered from problems such as moisture, puncture,
odor, and more by pouches. Therefore, you guarantee that your seasonings and spices
make it safely from the factory to the taste buds of your customers.

SWOT Analysis
Strengths: Spices are an essential item used on a massive scale not only in India but
worldwide. This suggests that this will not go to an end. Henceforth, investing in the
spice business will be a strategic move. Also, people in today’s time mostly use ready-
made masalas which gives scope for every other person to start investing in the
business.

Weaknesses: It’s not ready to eat the product, hence it involves several steps to
reach the final end-user that makes it a bit costly. Also, as mentioned above working
labor issue is the main weakness of this business, which a new investor has to
overcome.

Opportunity: Here are so many opportunities lies for a new investor, after brand
marketing there will be nothing but high returns. Not only can you tie-up with local
vendors but big brand marts such as Reliance, Grofers, Easy Day, where your brand will
get more recognition.

Threats: Major threats are allegations of adulteration for name shame. However other
one is of a number of competitors in the market where you have to win the stake by
making your marketing strategy unique and by giving the best quality
 Project For :
MASALA MAKING UNIT

III. ECONOMICS OF THE PROJECT

A. COST OF PROJECT
(Rs. Lacs)

S.No. Particulars Total Spent Bal. To be

spent

1 Land & Building ( Existing) - - -

2 Plant & Machinery 5.50 0.00 5.50

3 Furniture & Electricals 0.25 0.00 0.25

4 Preliminery and pre operative expenses. 0.10 0.00 0.10

5 Working Capital 2.47 0.00 2.47

8.32 0.00 8.32

Means of Finance :

a) Own Contribution (10%) 0.83

b) T L facility from Bank (90%) 5.27

c) C.C. Facility from Bank (90%) 2.23

8.32

d) Subsidy Entitlement Under

PMEGP scheme @ 35% 2.91
 Project For :
MASALA MAKING UNIT

B. PROFITABILITY STATEMENT
(Rs. Lacs)

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

1 Sales 14.46 17.36 20.25 23.14 24.59 26.03

Add : Increase in Cl.Stock 1.87 1.14 1.30 1.46 1.46 1.55
Total Turnover 16.33 18.50 21.55 24.60 26.05 27.58

2 RM Consumption 10.42 12.44 14.46 16.49 17.56 18.63

3 Overheads
a) Direct 2.42 2.66 2.93 3.19 3.48 3.79
b) Indirect 0.75 0.76 0.78 0.80 0.83 0.86
4 Balance 2.75 2.64 3.38 4.12 4.19 4.30
5 Interest on TL & CC 0.81 0.71 0.60 0.48 0.35 0.27
6 Depreciation 0.85 0.72 0.62 0.52 0.45 0.38
7 Preliminery expenses W/off 0.02 0.02 0.02 0.02 0.02 -
8 Profit after Interest & Dep. 1.08 1.19 2.14 3.09 3.37 3.65
9 Income Tax - - - 0.31 0.34 0.37
10 Profit after Tax 1.08 1.19 2.14 2.78 3.04 3.29
11 Add: Depreciation & Pre Exp. 0.87 0.74 0.64 0.54 0.47 0.38
12 Add : Interest on TL 0.81 0.71 0.60 0.48 0.35 0.27
13 Cash Accruals 2.75 2.64 3.38 3.81 3.85 3.93
14 Instalments of TL & Interest 1.64 1.64 1.64 1.64 1.64 0.27

15 DSCR 1.68 1.61 2.06 2.32 2.35 -

16 Average DSCR 2.00

17 N.P. to Total receipts 7.45 6.87 10.58 12.02 12.35 12.62

 Project For :
MASALA MAKING UNIT

C. CASH FLOW STATEMENT

(Rs. Lacs)

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

A CASH INFLOW :

1 Collection from Debtors 13.86 16.63 19.40 22.18 23.56 24.95

2 T.L. from Bank 5.27
3 CC from bank 2.23
4 Capital 0.83 - - - - -
5 Subsidy 2.91 -

TOTAL (A) 25.10 16.63 19.40 22.18 23.56 24.95

B CASH OUTFLOW :

1 Fixed Assets 5.85 -

2 Payments to creditors 8.68 10.36 12.05 13.74 14.63 15.52
3 Direct overheads 2.42 2.66 2.93 3.19 3.48 3.79
4 Indirect Overheads 0.75 0.76 0.78 0.80 0.83 0.86
5 Interest on Bank Loan 0.81 0.71 0.60 0.48 0.35 0.27
6 Income Tax - - - 0.31 0.34 0.37
7 Term Loan Repayment 0.84 0.93 1.04 1.16 1.30 -
8 Drawings 0.50 0.52 0.57 0.63 0.64 0.70

TOTAL (B) 19.84 15.94 17.97 20.32 21.56 21.52

SUMMERY:
Op. Cash & Bank Balance. - 5.26 5.95 7.38 9.24 11.25
Add : Surplus / (Deficit) 5.26 0.69 1.43 1.86 2.01 3.43
Cl. Cash & Bank Balance. 5.26 5.95 7.38 9.24 11.25 14.68
 Project For :
MASALA MAKING UNIT

D. BALANCE SHEET
(Rs. Lacs)

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

A ASSETS :

1 Fixed Assets 4.90 4.18 3.56 3.04 2.59 2.21

2 Investments - - - - - -

3 Current Assets 7.73 10.29 13.87 18.15 22.65 28.71

4 Loans & Advances - - - - - -

5 Pre Exp. Not written off 0.08 0.06 0.04 0.02 - -

TOTAL (A) 12.71 14.53 17.47 21.21 25.24 30.92

B LIABILITIES:

1 Capital 4.32 4.99 6.57 8.72 11.12 13.70

2 Secured loans
Term Loan 4.43 3.50 2.46 1.30 - -

3 Unsecured Loans - - - - - -

4 Current Liabilities
Cash Credit 2.23 2.23 2.23 2.23 2.23 2.23
Sundry Creditors 1.74 3.81 6.22 8.97 11.89 15.00

TOTAL (B) 12.71 14.53 17.47 21.21 25.24 30.92

.
- - - - - -
 Project For :
MASALA MAKING UNIT

(Rs. Lacs)

E. CAPITAL ACCOUNT

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

1 Op. Balance - 4.32 4.99 6.57 8.72 11.12

2 Additions 3.75 - - - - -

3 Net Profit for the year. 1.08 1.19 2.14 2.78 3.04 3.29

Sub Total 4.82 5.51 7.14 9.35 11.76 14.40

4 Less : Drawings 0.50 0.52 0.57 0.63 0.64 0.70

5 Cl. Balance 4.32 4.99 6.57 8.72 11.12 13.70

 Project For :
MASALA MAKING UNIT

(Rs. Lacs)

F. PRODUCTION AND SALES

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Capacity utilisation 0.50 0.60 0.70 0.80 0.85 0.90

1 Production per annum (Nos.)

Masalas 225.40 270.48 315.56 360.64 383.18 405.72

2 Cl.Stock of Finished Goods (Nos.)

Masalas 18.78 22.54 26.30 30.05 31.93 33.81

3 Sales per annum (MT)

(Tot Production less Cl. Stock)
Masalas 206.62 247.94 289.26 330.59 351.25 371.91

4 Sales per annum

Masalas 14.46 17.36 20.25 23.14 24.59 26.03
( Avg. Selling Price
@ 70 per Kgs.)

Total Sale 14.46 17.36 20.25 23.14 24.59 26.03

5 Sundry Debtors 0.60 0.72 0.84 0.96 1.02 1.08

(Credit period allowed 15 days)

6 Collection from Debtors 13.86 16.63 19.40 22.18 23.56 24.95

7 Total cost of Production 12.84 15.10 17.39 19.68 21.03 22.42

8 Cost per MT 0.06 0.06 0.06 0.05 0.05 0.06

9 Value of Closing Stock 1.07 1.26 1.45 1.64 1.75 1.87

 Project For :
MASALA MAKING UNIT

PRODUCTION

Installed
capacity Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
S.No. Particulars (Quintal) 0.50 0.60 0.70 0.80 0.85 0.90

1 Production of different types of 450.80 225.40 270.48 315.56 360.64 383.18 405.72
Masalas

Installed Capacity Kgs./ Hrs 20.00

Per Day Working Hours 8.00
Less: Lunch Hours 1.00
Net 7.00

Total Production per day 1.40 Quintal

Total production per annum 450.80 Quintal

Total Working Days 365.00

Weekly off 26.00
Holidays 7.00
Machine Break down 10.00 43.00
Net Working days 322.00
 Project For :
MASALA MAKING UNIT

(Rs. Lacs)

G. RAW MATERIAL CONSUMPTION AND INVENTORY

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

1 Production (Nos.) ( Output) 225 270 316 361 383 406

2 RM Purchases 9.62 11.48 13.35 15.22 16.21 17.20

Raw Material requirement ( Input)

S.No. Items Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

1 Requirement of Raw material 9.02 10.82 12.62 14.43 15.33 16.23

(@ Rs. 30 per Kgs.)

2 Packaging Material 0.60 0.66 0.73 0.80 0.88 0.97

3 Total cost of R.M 9.62 11.48 13.35 15.22 16.21 17.20

 Project For :
MASALA MAKING UNIT

(Rs. Lacs)

RAW MATERIAL CONSUMPTION AND INVENTORY

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

1 RM cost for total production 9.62 11.48 13.35 15.22 16.21 17.20

2 Cl. Stock of RM
( assumed 30 days consumption)
O/p Stock - 0.80 1.76 2.87 4.14 5.49
Add : Addition 0.80 0.96 1.11 1.27 1.35 1.43
Closing Stock 0.80 1.76 2.87 4.14 5.49 6.92

3 RM Purchases 10.42 12.44 14.46 16.49 17.56 18.63

4 Sundry Creditors 1.74 2.07 2.41 2.75 2.93 3.10

(Credit period allowed 60 days)

5 Payment to creditors 8.68 10.36 12.05 13.74 14.63 15.52

 Project For :
MASALA MAKING UNIT

(Rs. Lacs)

H. DIRECT OVERHEADS

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

1 Manpower
a Skilled Worker 0.72 0.79 0.87 0.96 1.05 1.16
1 no.@ Rs. 6,000 per month

b Unskilled Worker 0.60 0.66 0.73 0.80 0.88 0.97

1 no.@ Rs. 5,000 per month

2 Power and Fule 0.60 0.66 0.73 0.80 0.88 0.97

@ Rs. 5,000 per month

3 Other Production Overheads 0.50 0.55 0.61 0.64 0.67 0.70

Total 2.42 2.66 2.93 3.19 3.48 3.79

`
 Project For :
MASALA MAKING UNIT

(Rs. Lacs)

I. INDIRECT OVERHEADS

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

1 Advertisement & Publicity 0.25 0.28 0.30 0.33 0.37 0.40

2 Repairs & Maint. 0.25 0.21 0.18 0.15 0.13 0.11

( 5% of machinery cost)

3 Misc. Expenses 0.25 0.28 0.30 0.32 0.33 0.35

0.75 0.76 0.78 0.80 0.83 0.86

 Project For :
MASALA MAKING UNIT

(Rs. Lacs)

J. TERM LOAN REPAYMENT AND INTEREST THEREON

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

1 TL / Op. Bal. 5.27 4.43 3.50 2.46 1.30 -

2 Repayment during the year 0.84 0.93 1.04 1.16 1.30 -
3 Cl. Balance 4.43 3.50 2.46 1.30 - -

4 Interest at 11 per cent p.a. 0.54 0.44 0.33 0.21 0.08 -

5 Total repayment with Interest 1.64 1.64 1.64 1.64 1.64 0.27

6 Interest on CC 0.27 0.27 0.27 0.27 0.27 0.27

( at 12 per cent p.a.)

Total Interest 0.81 0.71 0.60 0.48 0.35 0.27

LOAN AMOUNT 5.27

RATE OF INTEREST PER ANNUM 11.00%
RATE OF INTEREST PER MONTH 0.917%
NO OF INSTALLMENT 60
EMI 0.11
Term Loan Repayment Schedule

MONTHS EMI INTERES PRINCIP OST

T AL PRINCIP
REPAYM AL
ENT
0 5.265
1 0.11 0.05 0.07 5.20
2 0.11 0.05 0.07 5.13
3 0.11 0.05 0.07 5.06
4 0.11 0.05 0.07 5.00
5 0.11 0.05 0.07 4.93
6 0.11 0.05 0.07 4.86
7 0.11 0.04 0.07 4.79
8 0.11 0.04 0.07 4.72
9 0.11 0.04 0.07 4.65
10 0.11 0.04 0.07 4.57
11 0.11 0.04 0.07 4.50
12 0.11 0.04 0.07 4.43
First Year 1.37 0.54 0.84
13 0.11 0.04 0.07 4.36
14 0.11 0.04 0.07 4.28
15 0.11 0.04 0.08 4.21
16 0.11 0.04 0.08 4.13
17 0.11 0.04 0.08 4.05
18 0.11 0.04 0.08 3.98
19 0.11 0.04 0.08 3.90
 20 0.11 0.04 0.08 3.82
21 0.11 0.04 0.08 3.74
22 0.11 0.03 0.08 3.66
23 0.11 0.03 0.08 3.58
24 0.11 0.03 0.08 3.50
Second Year 1.37 0.44 0.93
25 0.11 0.03 0.08 3.41
26 0.11 0.03 0.08 3.33
27 0.11 0.03 0.08 3.25
28 0.11 0.03 0.08 3.16
29 0.11 0.03 0.09 3.08
30 0.11 0.03 0.09 2.99
31 0.11 0.03 0.09 2.90
32 0.11 0.03 0.09 2.82
33 0.11 0.03 0.09 2.73
34 0.11 0.02 0.09 2.64
35 0.11 0.02 0.09 2.55
36 0.11 0.02 0.09 2.46
Third Year 1.37 0.33 1.04
37 0.11 0.02 0.09 2.36
38 0.11 0.02 0.09 2.27
39 0.11 0.02 0.09 2.18
40 0.11 0.02 0.09 2.08
41 0.11 0.02 0.10 1.99
42 0.11 0.02 0.10 1.89
43 0.11 0.02 0.10 1.79
44 0.11 0.02 0.10 1.70
45 0.11 0.02 0.10 1.60
46 0.11 0.01 0.10 1.50
47 0.11 0.01 0.10 1.40
48 0.11 0.01 0.10 1.30
Fourth Year 1.37 0.21 1.16
49 0.11 0.01 0.10 1.19
50 0.11 0.01 0.10 1.09
51 0.11 0.01 0.10 0.98
52 0.11 0.01 0.11 0.88
53 0.11 0.01 0.11 0.77
54 0.11 0.01 0.11 0.67
55 0.11 0.01 0.11 0.56
56 0.11 0.01 0.11 0.45
57 0.11 0.00 0.11 0.34
58 0.11 0.00 0.11 0.23
59 0.11 0.00 0.11 0.11
60 0.11 0.00 0.11 0.00
Fifth Year 1.37 0.08 1.30
 Project For :
MASALA MAKING UNIT

(Rs. Lacs)

K. WORKING CAPITAL

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

1 Total Inventory 1.87 3.02 4.32 5.78 7.24 8.79

2 Sundry Debtors 0.60 0.72 0.84 0.96 1.02 1.08

Total 2.47 3.74 5.16 6.74 8.27 9.88

3 Bank C.C. 2.23 3.37 4.65 6.07 7.44 8.89

(90 per cent)

4 Own Contribution (10%) 0.25 0.37 0.52 0.67 0.83 0.99

 Project For :
MASALA MAKING UNIT

(Rs. Lacs)

L. CURRENT ASSETS

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

1 Cl. Stock of Materials 0.80 1.76 2.87 4.14 5.49 6.92

2 Cl. Stock of Finished Goods 1.07 1.26 1.45 1.64 1.75 1.87

Total Inventory 1.87 3.02 4.32 5.78 7.24 8.79

3 Cash and bank Balance 5.26 5.95 7.38 9.24 11.25 14.68

4 Sundry Debtors 0.60 1.33 2.17 3.13 4.16 5.24

Total 7.73 10.29 13.87 18.15 22.65 28.71

 Project For :
MASALA MAKING UNIT

M. FIXED ASSETS AND DEPRECIATION

(Rs. Lacs)

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

1 Plant & Machinery

Op. Balance - 4.68 3.97 3.38 2.87 2.44
Additions 5.50 -
Total 5.50 4.68 3.97 3.38 2.87 2.44
Less : Depreciation 0.83 0.70 0.60 0.51 0.43 0.37
Cl. WDV 4.68 3.97 3.38 2.87 2.44 2.07

2 Furniture & Electricals

Op. Balance - 0.23 0.20 0.18 0.16 0.15
Additions 0.25 -
Total 0.25 0.23 0.20 0.18 0.16 0.15
Less : Depreciation 0.03 0.02 0.02 0.02 0.02 0.01
Cl. WDV 0.23 0.20 0.18 0.16 0.15 0.13

Total Depreciation 0.85 0.72 0.62 0.52 0.45 0.38

Cl. WDV 4.90 4.18 3.56 3.04 2.59 2.21