PROJECT PROFILE

ON SPICES
MAKING UNIT
Table of Contents
INTRODUCTION 2
PRODUCTS AND ITS APPLICATION 3
DESIRED QUALIFICATION FOR PROMOTER 3
INDUSTRY OUTLOOK/TREND 3
MARKET POTENTIAL AND MARKETING ISSUES, IF ANY 4
RAW MATERIAL REQUIREMENTS 4
Raw material requirement per year 4
MANUFACTURING PROCESS 4
MANPOWER REQUIREMENT (PER MONTH) 5
LAND 5
MACHINERY SPECIFICATIONS 5
COST OF THE PROJECT 6
IMPLEMENTATION SCHEDULE 6
WORKING CAPITAL ASSESSMENT 6
PROFITABILITY CALCULATION 7
BREAK EVEN POINT ANALYSIS 7
References 7
MANUFACTURES/ SUPPLIERS OF MACHINERY 7
STATUTORY/ GOVERNMENT APPROVALS 8
DISCLAIMER: 9
DISCLAIMER: 9
INTRODUCTION
India plays an important role in spice production in the world. It is the largest producers, consumers
and exporter of varieties of spices. Indian spices can be categorized into mainly three types – basic
spices, complementary spices and aromatic or secondary spices. Example of basic spices are cumin,
mustard seeds, etc., those go into every cuisine. Spices like fennel or nigella seeds are sometimes
added along with some of the basic spices to add to flavours. These are used in combination with
the basic spices and aromatics mentioned below according to the dish being prepared. To the above
spices we would add chopped onions, tomatoes, herbs and any of the following secondary spices
and create a curry. We go light with the Aromatics and added them in small quantities or in the form
of garam masala. Indian states like Andhra Pradesh, Rajasthan, Odisha, Gujarat, Kerala, etc. are major
spices producing states.

PRODUCTS AND ITS APPLICATION

● Spices are very common in every Indian cuisine. This gives aroma, taste and flavour in the
recipes.
● Most of the foreign countries use Indian spices in the food.
● Spices are also used for oil production
● Besides food value, spices are extensively used in ayurvedic medicines.
● Spices are also used in the allopathic medicines, especially in heart ailments, cancer, diabetes,
chronic inflammation, and the common cold.
● Spices like turmeric, etc. are used in the cosmetic products.

DESIRED QUALIFICATION FOR PROMOTER

No specific education or qualification requires for spice making unit owners.

INDUSTRY OUTLOOK/TREND
Spices market can be segmented by product and application – herbs, spices, salt & pepper. Salt and
salt substitutes hold significant market share owing to its dominant usage in every type of food. We
are not considering the salt and salt substitutes. Spices market is increasing day by day due to increase
in disposable income, change in lifestyle, rising number of working women, increased demand for
packaged foods, etc. Hence, the increasing usage of these flavours is expected to open new
opportunities in the recent future. The increase in demand for seasonings to be used in overseas
cuisines such as continental, French and Italian; is expected to boost the industry growth. Changing
dietary habits and increasing awareness of medicinal properties of spices such as cloves, cinnamon and
turmeric after Covid 19, are anticipated to propel the regional market growth across Asian countries,
including India and China.
Value in Rs. Lakh
2021-2022
2018-2019 2019-2020 2020-2021
HS Code Commodity (Apr-Jun)

Ginger,Saffron,Turmeric
910 (Curcuma), Thyme, Bay Leaves, 3,04,552.35 2,98,876.74 4,23,414.50 1,13,262.03
Curry And Other Spices

MARKET POTENTIAL AND MARKETING ISSUES, IF ANY

India is the second largest populous country in the world, after China. Population growth is also
significantly high. With the growing population, consumer demand for spices are also growing at a
progressive rate in the domestic market. Moreover, the change in lifestyle, growing urban
population, increasing number of working women, the scope of spice market is growing. Now
people are using more and more processed spices in the form of powder instead of basic spices. On
the other hand demand for high quality spices are also increasing in the export markets. In Indian
market spices require various food quality standards such as FSSAI, FSMS, ISI and ISO etc. to
establish a spice processing unit. Concisely, it can be said there is a huge market growth potential for
manufacturer for packed spices. Raw materials are easily available from the local market anywhere in
India. Marketing of spices is not complicated as there are ample numbers of retail shops who will
play as prospective buyers in and around the unit.

RAW MATERIAL REQUIREMENTS

Various spices such as Red Chili, Haldi (turmeric), Cumin seeds, Dhania (coriander), black pepper,
bay leaf, curry leaf, are required as essential raw materials. To pack dried powders, packing materials
of food grade (plastic items) is required and to pack them in bunch, cardboard boxes are required.

Raw material requirement per year

Particulars UOM Year-1 Year-2 Year-3 Year-4 Year-5

Capacity Utilization % 60% 70% 80% 90% 100%
Raw Materials & Other direct
₹. In Lacs 169.55 197.81 226.06 254.32 282.58
inputs
 MANUFACTURING PROCESS
Process flow chart of preparation of spices powder is as follows:

Cleaning and drying of raw spices

Grinding in pulveriser

Packing in food-grade packaging materials

Packets are packed in cardboard boxes

Processing and labelling

MANPOWER REQUIREMENT (PER MONTH)

The enterprise requires 10 employees as detailed below:

Designation of Salary Per Person Monthly Salary ₹

Number of employees required
Employees
Year-1 Year-2 Year-3 Year-4 Year-5
Variable Labour: Workers
Operator ₹ 10,000.00 ₹ 10,000.00 2 2 2 2 2
Un Skilled
₹ 8,000.00 ₹ 24,000.00 3 3 3 5 5
Workers
Sub-total ₹ 34,000.00 5 5 5 7 7
Fixed Staff
Accountant ₹ 12,000.00 ₹ 12,000.00 1 1 1 1 1
Store Keeper ₹ 8,000.00 ₹ 8,000.00 1 1 1 1 1
Sales Staff ₹ 12,000.00 ₹ 24,000.00 3 3 3 4 4
Sub-total ₹ 44,000.00 5 5 5 6 6
Total ₹ 78,000.00 10 10 10 13 13

LAND
Particulars Units Details
Land 1000 Sq. Ft. 15 lakh
Building 500 Sq. Ft. 12.50 lakh
Total 27.50 lakh

MACHINERY SPECIFICATIONS
Sr. Rate (₹
Qtt Value (₹
No Particulars UOM in
y in Lacs)
. Lacs)
Plant & Machinery / equipment
a) Main Machinery
Pulverize with motor starter and all
1 Nos 5 ₹ 0.45 ₹ 2.25
accessories
2 Disintegrate for Haldi (turmeric) Nos 2 ₹ 0.35 ₹ 0.70
3 Hot Air Tray Dryer Nos 3 ₹ 0.30 ₹ 0.90
4 Packing, Filling and Sealing Machine Nos 3 ₹ 2.00 ₹ 6.00
5 Weighing Scale Nos 2 ₹ 0.10 ₹ 0.20
6 Material Handling Equipment LS ₹ 0.85 ₹ 0.85
7 Misc. Tools LS ₹ 0.50 ₹ 0.50
sub-total Plant & Machinery ₹ 11.40
Furniture / Electrical installations
1 Office furniture and Electrification LS 1 ₹ 0.50 ₹ 0.50
sub total ₹ 0.50
Other Assets
1 preliminary and preoperative LS 1.37 ₹ 1.37
sub-total Other Assets ₹ 1.37
Total ₹ 13.04

COST OF THE PROJECT

Sl. No Particulars Cost (Rs. Lakh)
1 Land 15.00
2 Building 12.50
3 Plant and Machinery 11.40
4 Furniture 0.50
5 Other Assets including Preliminary / 1.14
Pre-operative expenses
6 Margin for Working Capital 68.25
Total 108.79

IMPLEMENTATION SCHEDULE
Months……
Project Stages 1 2 3 4 5 6 7
Acquisition of Land
Ordering of Machinery
Delivery of Machinery
Term/Wkg Loan Sanction
Installation of Machinery
Commissioning of Plant
RM/Inputs Procurement
Manpower Appointments
Commercial Production
 WORKING CAPITAL ASSESSMENT
The project requires working capital of ₹68.25 lacs as detailed below:

Sr. No. Particulars Gross Amt Margin % Margin Amt Bank Finance
1 Inventories 34.13 25% 8.53 25.59
2 Receivables 17.06 25% 4.27 12.80
3 Overheads 17.06 100% 17.06 0.00
4 Creditors - 0.00 0.00
Total 68.25 29.86 38.39

PROFITABILITY CALCULATION
Sr. No. Particulars UOM Year-1 Year-2 Year-3 Year-4 Year-5
1 Capacity Utilization % 60% 70% 80% 90% 100%
2 Sales ₹. In Lacs 221.76 258.72 295.68 332.64 369.6
Raw Materials & Other
3 direct inputs ₹. In Lacs 169.55 197.81 226.06 254.32 282.58
4 Gross Margin ₹. In Lacs 52.21 60.91 69.62 78.32 87.02
5 Overheads except interest ₹. In Lacs 13.6 14.45 16.15 16.66 17
6 Interest @ 10 % ₹. In Lacs 8.16 8.16 5.44 4.08 3.26
7 Depreciation @ 30 % ₹. In Lacs 7.98 5.7 3.99 2.85 2.57
8 Net Profit before tax ₹. In Lacs 22.47 32.6 44.04 54.73 64.19

The basis of profitability calculation:

This unit will have Processing Capacity of 300 MT/annum and Sales Turnover 260 MT at Rs 370 Lacs
Per annum. The growth of selling capacity will be increased 10% per year. (This is assumed by various
analysis and study; it can be increased according to the selling strategy.) The depreciation of plant is
taken at 10-12 % and Interest costs are taken at 14 -15 % depending on type of industry.

BREAK EVEN POINT ANALYSIS

Sr. No. Particulars UOM Value
1 Sales at full capacity ₹. In Lacs 369.60
2 Variable costs ₹. In Lacs 282.58
3 Fixed costs incl. interest ₹. In Lacs 20.26

4 BEP = FC/(SR-VC) x 100 = % of capacity 23.29%

References
● CFTRI , Mysore-spices
● spices -https://www.wbfpih.gov.in spices
 ● Ground & Processed Spices - TIMEIShttps://www.techno-preneur.net
● Video Link- https://youtu.be/YuCM41EHv_Q
MANUFACTURES/ SUPPLIERS OF MACHINERY
All the machines and equipment are available from local manufacturers. The entrepreneur needs to
ensure proper selection of product mix and proper type of machines and tooling to have modern
and flexible designs. It may be worthwhile to look at reconditioned imported machines, dies and
tooling. Some of the machinery and dies and tooling suppliers are listed here below:

1. Fry-Tech Food Equipments Private Limited

S. No. 4, Raviraj Industrial Estate,
Bhikhubhai Mukhi Ka Kuwa Bharwadvash,
Ramol, Ahmedabad - 380024,
Gujarat, India

2. Hindustan Vibrotech Pvt. Ltd.

Office No. 2, Ground Floor,
Vrindavan Building, Vile Parle East,
Mumbai – 400057,
Maharashtra, India

3. Electrons cooling systems Pvt. Ltd.

S-27, SIDCO Industrial Estate
Kakkalur Industrial Estate
Tiruvallur – 602003,
Tamil Nadu, India

4. Springboard Enterprises India Ltd.

1st, 2nd & 3rd Floor,
Plot No. 7, 8 & 9,
Garg Shopping Mall,
Service Centre, Rohini Sector 2
New Delhi – 110085,
Delhi, India

5. Flour Tech Engineers Private Limited

Plot No. 182, Sector 24,
Faridabad - 121005,
Haryana, India

6. P Square Technologies
3, Swami Mahal,
Gurunanak Nagar,
Off. Shankarsheth Road Bhavani Peth,
Pune - 411002,
Maharashtra, India

7. Ricon Engineers
10 To 13, Bhagwati Estate,
Near Amraiwadi Torrent Power,
Behind Uttam Dairy,
Rakhial, Ahmedabad - 380023,
Gujarat, India
 8. Kamdhenu Agro Machinery
Plot No. 6, Near Power House,
Wathoda Road Wathoda,
Nagpur - 440035,
Maharashtra, India

STATUTORY/ GOVERNMENT APPROVALS

There is statutory requirement of FSSAI license for setting up of food processing industry. 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.
DISCLAIMER:
This is an indicative illustration of project profile; the above calculation can vary with the locations.
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.

DISCLAIMER:
"The document users/third parties shall verify the facts and figures at their end and shall be solely
responsible for any action taken by it based on this document. BRIEF & SIDBI, its directors,
employees or any office shall not be liable for loss of whatsoever nature arising by using the content
of this document."