Dehydrated Drumstick (Moringa Olifera) Powder: Profile No.: 95 NIC Code:21009

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Profile No.

: 95 NIC Code:21009

DEHYDRATED DRUMSTICK (MORINGA OLIFERA) POWDER

1. INTRODUCTION

Drumstick also known as Moringa Olifera scientifically is a unique vegetable that


contains many types of amino-acids, antioxidants, anti-inflammatory, anti-microbial
compounds and nutrients which make it one of the best nutritional supplements. It is
grown in large quantities in the State and especially in the southern districts. Drumstick
forms an important ingredient in sambhar prepared traditionally at home or in
restaurants and eating-houses. The flavour is most preferred. Being messy to use, the
powder is finding a lot of acceptability both in India and abroad. There is a considerable
surplus of this vegetable that can be processed (dehydrated) for consumption
throughout the year.

2. PRODUCT AND ITS APPLICATION

Moringa Oleifera, an Indian origin plant has gained its importance due to nutraceutical
values and is considered as indispensable plant for health management. It is an
excellent source of minerals like iron, calcium and vitamins A, B, B1, B2, B3, B6, C, E
as well as macro minerals, trace minerals and phytonutrients. This powder can be
taken as a nutraceutical supplement and as food additive. Moringa is used for anemia,
arthritis and other joint pain (rheumatism); asthma; cancer; constipation; diabetes;
diarrhoea; epilepsy; stomach pain and ulcers, intestinal ulcers; intestinal spasms;
headache; heart problems; high blood pressure; kidney stones; fluid retention; thyroid
disorders; beneficial for lactating mothers and bacterial, fungal, viral, and parasitic
infections. This product owing to extraordinary nutritional value is used for treating
malnutrition.

3. DESIRED QUALIFICATION OF PROMOTER

Graduate from Life Sciences and allied disciples. Having knowledge about marketing
or possess marketing network.
4. INDUSTRY OUTLOOK/ TREND

Dehydrated drumstick powder is used in various formulations of nutraceutical


products. In pharmaceutical, there are number of verticals but nutraceutical is an area
which is growing at faster speed in India due to awareness for healthcare. Increased
life span in India and growing population of senior citizens has increased the demand
for nutraceutical products and their ingredients like drumstick powder. It is estimated
that nutraceuticals demand is growing at the rate of 10% per annum.

5. MARKET POTENTIAL AND MARKETING ISSUES, IF ANY

Food processing industries purchase the product in bulk quantities. The dehydrated
powder also has a good export potential. The major market outlets are the “A” class
outlets. The product also finds placement in self-service counters and departmental
stores. In the initial period, awareness in the market may be created by the promoters.
Also, as long as the government and NGO’s programs on malnutrition exists, the
market size will become bigger, stable and permanent.

While the Indian nutraceutical industry is currently nascent, it has great potential and
is expected to grow at a growth rate of 16 percent year on year for the next five years.
This makes it one of the key markets for entry for nutraceutical product and ingredient
manufacturers.

6. RAW MATERIALS REQUIREMENT

Raw materials will never be a problem since drumsticks are used as raw materials
which are easily available.

7. MANUFACTURING PROCESS

 Washing
Fresh mature drumsticks are selected for processing. They are washed to
remove adhering dirt.
 Grading
The vegetable is graded to remove damaged and immature sticks.

 Steaming and blanching


The sticks are steamed and blanched in huge tanks to facilitate pulp extraction.

 Pressing
The soft sticks are pressed between rollers to extract the pulp.

 Slurry preparation
Thick slurry is prepared with the pulp obtained.

 Drying
The slurry is dried in a vacuum drier with the core drying temperature ranging
between 50 to 55 degrees centigrade.

 Grinding
It is ground to a fine powder along with some edible starches and anti-caking
agents.

7.1 Quality specifications


The product should be free from mold and fungal growth.
It should be free from any fermented odour, coliforms, salmonella and streptococci
bacteria. The moisture content in the product should not normally exceed 6 to 8%.
It shall not contain any added flavours or colours.

7.2 Pollution control measures


Not necessary as there are no pollutants or effluents.

7.3 Energy conservative measures


Common measures will do.

7.4 Fruit Products Order License


A FPO license is necessary for processing this vegetable
7.5 Packaging
Dehydrated drumstick powder can be packed in metallised or foil pouches for retail
packaging. Bulk packaging can be in tins.

7.6 Manufacturing capacity


The plant will be in operation for three shifts a day. The plant will process 1500 kgs of
drumstick per day. The edible portion of drumstick is 83% and it has a moisture content of
86%. The yield of dehydrated drumstick powder will be 15% of the weight of raw material
used. The total quantity of finished product per annum would be 67.5 metric tons. The time
period required for achieving full capacity utilization is five years.

8. MANPOWER REQUIREMENT

The project will require production manager, Chemist, Skilled and unskilled workers,
packaging workers, and other administrative staff.

9. IMPLEMENTATION SCHEDULE

The project can be implemented within six months by securing finance. The technology and
equipment are available indigenously. The industrial shed required for this project may be
obtained from readily available buildings in the industrial zone. The process of drug license,
procuring machinery, training of manpower etc. may be done simultaneously to save time.

10. COST OF PROJECT

Sr. No Particulars Rs. (lakhs)


1 Land -
2 Building 35.00
3 Plant and Machinery 110.7
4 Laboratory equipment 5.00
5 Furniture and Fixtures 5.00
6 Electrification and Power connection 10.00
7 Machinery Spares 5.00
8 Margin for working capital 26.00
9 Total 196.7

11. MEANS OF FINANCE


Means of Finance

SN Particulars Rs. (lakhs)


1 Promoter's contribution 58.8
2 Bank Finance 137.9
Total 196.7

12. WORKING CAPITAL CALCULATION PER MONTH

Rs. Stock Promoter Margin Bank


Sr. No. Description
lakhs Period days Margin Amt. Finance
1 Salaries and wages 4.8 30 1 4.8
2 Raw material and packaging material 4.6 30 0.5 2.3 2.3
3 Utilities 1.2 30 0.5 0.6 0.6
4 Creditors -0.38 30 0.4 -0.152 -0.228
5 Total 10.22 7.548 2.672

13. LIST OF MACHINERY AND THEIR MANUFACTURERS

Sr. No. Particulars Rs. lakhs


1 Precooling facility at + 10 degrees centigrade for drumsticks 7.5
Stacking trays for drumsticks -each tray holding around 10 kgs
2 3.7
of raw material
3 Preparatory section consisting of washing tank 2.5
4 Steaming and blanching tank 9.2
5 Pulp extractor 3
Vacuum drier for dehydrating drumstick at a capacity of 500
6 kilograms in a span of 8 to 10 hours, complete with vacuum 24.2
pump, heat exchangers and accessories
7 Form fill and seal machine with augur weigher and filler 13.7
Pin mill with accessories at a grinding capacity of 50 kilograms
8 27.5
per hour
9 Boiler and accessories 19.2
10 Total 110.7
11 Laboratory equipment 5
12 Grand total machinery and equipment 115.7

 Bajaj Processpack Limited


B136, Sector 63,
Noida – 201301
Uttar Pradesh

 Aakanksha Technologies
1561, Sector – 4,
Gurgaon – 122 001

14. PROFITABILITY ANALYSIS

Sr. No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5


1 Sales/Gross income 283.5 324 364.5 364.5 364.5
2 Raw materials and other variable costs 44.66 51.04 57.42 57.42 57.42
3 Contribution 238.84 272.96 307.08 307.08 307.08
4 Overheads (except interest) 108.22 123.68 139.14 139.14 139.14
Profit before Interest, Depreciation &
5
Tax 130.62 149.28 167.94 167.94 167.94
6 Interest on term loans (11%) 3.92 4.48 5.04 5.04 5.04
7 Profit before depreciation & tax 126.7 144.8 162.9 162.9 162.9
8 Depreciation 11.41 13.04 14.67 14.67 14.67
9 Profit before tax (PBT) 115.29 131.76 148.23 148.23 148.23
10 Income Tax (30%) 34.587 39.528 44.469 44.469 44.469
Profit After Tax 80.703 92.232 103.761 103.761 103.761

Underlying assumptions for probability calculation are:-

Sales price is taken at 520 per kg, whereas cost of raw material is taken at Rs. 14 per kg.
cost of power is assumed at Rs. 8 per unit, rate of interest on term loan is calculated at
11%.

15. BREAK-EVEN ANALYSIS

Cash Break-Even (as % of Targeted sales)

Sr. No. Particulars Value (Rs. In lakhs)


Year-1

1 Sales Realization (SR) 405

2 Variable costs (VC) 63.8

3 Fixed costs (FC) incl. interest 154.6

4 BEP = FC/SR-VC x 100 = 45.3%


Note: The BEP
calculated above is % of respective year's targeted sales level and not of maximum/installed
capacity.

16. STATUTORY/ GOVERNMENT APPROVALS

There is specific statutory requirement for Drug & Pharmaceutical products like license from
state Food and Drug department. Moreover, MSME & GST registration, IEC Code for Export
of end products and local authority clearance may be required for Shops and Establishment,
for Fire and Safety requirement and registration for ESI, PF and Labour laws may be required
if applicable. Entrepreneur may contact State Pollution Control Board where ever it is
applicable.

17. BACKWARD AND FORWARD INTEGRATION

Promoters at appropriate time may think of having their own cultivation of drumstick. This
will ensure quality raw material and reduce cost. For forward integration, the formulation of
nutraceutical products and building own brand may result in high growth of the enterprise.

18. TRAINING CENTERS/COURSES

For food processing industry training and short-term courses are available at Indian Institute
of Food Processing Technology, Thanjavur, Tamil Nadu and Central Food Technological
Institute, Mysore, Karnataka & National Institute of Food Technology Entrepreneurship and
Management, Sonipat, Haryana.

Udyamimitra portal ( link : www.udyamimitra.in ) can also be accessed for handholding


services viz. application filling / project report preparation, EDP, financial Training, Skill
Development, mentoring etc.
Entrepreneurship program helps to run business successfully is also available from Institutes
like Entrepreneurship Development Institute of India (EDII) and its affiliates all over India.

Disclaimer:

Only few machine manufacturers are mentioned in the profile, although many machine
manufacturers are available in the market. The addresses given for machinery manufacturers
have been taken from reliable sources, to the best of knowledge and contacts. However, no
responsibility is admitted, in case any inadvertent error or incorrectness is noticed
therein. Further the same have been given by way of information only and do not carry any
recommendation.

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