CHALLANGING TASK

KASURI METHI PRODUCTION

Introduction
India is the world's largest producers, consumers and exporter of seed spices. Among all
the states of India, Gujarat and Rajasthan together contribute more than 80 per cent of the
total seed spices production in the country and thus, both the states together are known as
"seed spices bowl" of India.

In India, fenugreek occupies the third place in area after coriander and cumin and fourth place
in production among all the minor spices grown.

Fenugreek is a multipurpose crop, every part of which is consumed in one or the other form.
Its fresh tender leaves and pods are eaten as fried vegetables being rich in iron, calcium,
protein and vitamins.

Besides this, it has immense medicinal utility. Fenugreek seeds have high nutritive values
containing protein (9.5%), fat (10%), crude fibre (18.5%), carbohydrate (42.3%) and many
other minor nutrients and vitamins. It also contains good percentage of gums (23.06%),
mucilage (28%), trigonelline (0.13-30%), saponine (1.7%) and calorific values (370 calories
per 100 gm seed).

The fenugreek is commercially cultivated for its seeds as well as one of the oldest spices
thought the world. It is commercial significance largely grown in Rajasthan, Gujrat, Madhya
Pradesh, Utter Pradesh and Bihar. Rajasthan produces the lion's share of India's production,
accounting for over 80% of the nation's total fenugreek output.

There are two species of the genus Trigonella: Common methi (Trigonella foenum-graceum)
and Kasuri methi (Trigonella corniculata ).

Kasuri Methi Production Technique

Climate and Soil: -
Fenugreek is widely distributed in most parts of the world because of its adaptation to
different climatic conditions and environments. It is grown in Rabi season, free from frost
with moderately cool climate and low temperature for better vegetative growth during early
stages while a dry and relatively high temperature favours better ripening and high seed yield.
Its cultivation required moderately cool, frost free and clear sky climate for its growth &
development period. It is tolerant to drought and able to grow well in areas with moderate to
low rainfall; its temperature requirement is as low as 10-15 °C, though it can neither grow
well in extreme high nor in extreme low temperatures.
It can be also grown as a hot weather crop. The preferred soil type is loamy or sandy loam
with pH value in the range of 6-7 and with good drainage conditions for better yield. Kasuri
methi needs a comparatively cooler climate. It is grown mainly in soils which have rich
organic content. Well drained loamy soil is best suited for fenugreek cultivation.
Field preparation and sowing time: -
The soil should be brought to fine tilth by ploughing three or four times. Seeds are sown from
September to the middle of November for seed purpose and for leaves it can be sown up
March in the plains of northern India. In the hills it is sown in March-April and October.
Kasuri methi is sown in December. Rabi crop yields much more compared to kharif crop.
Seed germinate in 6-8 days of sowing.

Spacing: -
Seed sowing should be carried out @ 30 cm apart in rows with a planting space of 10 cm.
The seed sowed in depth of not more than 0.5 cm.

Seed rate: -
The seed rate is 40-50 kg for common methi and 30-35 kg for Kasuri methi per hectare.
Seeds are generally broadcast uniformly. Line sowing in rows 20-25 cm apart facilitates
weeding and intercultural operation during the initial stage of crop growth. Usually, no
thinning is required when it is grown for leafy vegetable but it is necessary for a seed crop.

Seed treatment:
Soaking in a solution of 0.6% EMS IS recommended for improved germination and survival
of seedlings. Seeds are soaked in cocycle solution at 50-100 ppm for improving germination
and enhancing seedling growth. Seeds are soaked in water for 2 days prior to sowing to
enhance germination. The seeds are Treated with Rhizobium culture (Azospirillum 1.5 kg/ha
+ Trichoderma viridae @50 g/ha) for 12 kg of seeds. For good field inoculation with
Rhizobium meliloti is useful.

Varieties: -
Pusa Early Branching, Pusa Kasuri, Rajendra Kranti, Hissar Sonali, Hisar Suvarna, Pant
Ragini, Lam selection 1, RMt-1, RMt 143 and Co1 etc.

Manure & Fertilizer: -

The field preparations add 15- 20 tons per hectare should be added to enrich field fertility.
Being a leguminous crop needs very little nitrogen fertilizer. At the time of sowing N: P: K
30:25:40 kg/ha should be applied in the field. Whole of the fertilizer is applied before or at
the time of sowing.

Use of growth regulators: -

A spray of ascorbic acid at 250-450 ppm improves the plant growth, enhances flowering and
number of seed and size. Spraying of GA3 (Gibberellic acid) @ 10-100 ppm enhanced the
internodal length, height and number of leaves. It also induces earlier flowering.

Irrigation: -
First irrigation is given immediately after sowing, second on the third day and subsequently
irrigations are given at 7-10 days intervals. Irrigation during early vegetative and grain
formation stages is more critical than later stages. Excess irrigation is likely to make the crop
susceptible to root rot disease. Avoid water stress at pod and seed development stage. Total
of four to six irrigations applied for it.
Intercultural operations: -
Fenugreek is a broadcasted crop. Hoeing and weeding are done as required. One weeding and hoeing
should be done about 25-30 days after sowing. At the time of thinning, weeding and earthing up is
given.
Second weeding should be done 55-60 days after sowing. In common methi one top dressing with 40
kg N/ha can be done if it is kept for cuttings. 2-3 top dressing of nitrogen 20 kg each time should be
done preferably after alternate cuttings in Kasuri methi.

Pest and Disease management: -

Frequently, the crop is subjected to the attack by a number of disease like damping off (Rhizoctonia
solani), powdery mildew (Erysiphe polygoni ), rust (Uromyces anthyllidis), downy mildew (
Pernospora trigonella ) and leaf spot (Cercospora traversian). But all the disease is not so serious in
fenugreek.
The young crop is attacked by damping off disease. This is caused by a fungus Rhizoctonia. It can be
controlled by giving a drenching of a 0.1 % carbendazim in the initial stage of incidence of the
disease. Powdery mildew is another serious disease affecting the crop. If it is severe, it can be
controlled by dusting 15 kg/ha of sulphur (5% dust).
The crop is not prone to severe damage by any insect. However, leaf eating caterpillar and pod borers
are found to occur and these can be controlled by spraying ekalux (0.05%) or Malathion (0.2%).

Harvesting: -
The crop comes to harvest about 70-160 days of sowing depending upon variety and season of
sowing. The plant is pulled out entirely when the pods turn yellow, made in to small bundles and sun-
dried seeds are separated by beating with stick.
Kasuri methi can give 5-6 cuttings at an interval of 15-20 days. The produce is kept in shade and
moist condition.

Yield: -
The yields depend upon the location, season varieties and harvesting time. The common
methi yields leaves about 70-80 q/ha and Kasuri 90-100 q/ha of leaves.
Seed yield is higher if no cutting are made and left entirely for seed production. 'Pusa Early
Branching" gives a seed yield of 1200-1500 kg/ha. Kasuri methi gives a seed yield of 900-
1000 kg/ha.

Storage: -
Seeds are stored in gunny bags lined with polythene paper. Vacuum gravity separators are
used for cleaning fenugreek seeds. The seeds are to be stored with initial moisture level of 7 -
8 % and at an equilibrium relativity of 40%.
 BUSINESS PLAN DEVELOPMENT

MACHINERY & EQUIPMENTS

Machine Name Description Machine Image.

Vibrating It consists of a vibrating sieve that is powered by
Cleaner an exciter, which is powered by an appropriate
motor, and it is used to remove the majority of dirt
and large impurities from a given grain.

De-stoner It’s a machine which is used to remove stones

from the given grain, widely used in various grain
mills in cleaning section.

Magnetic It’s a type of separator which is used to magnetic

Separator
impurities from given product using powerful
electromagnets, used in wide range of industries
for separation.

Gravity The gravity separator is used to separate any type

separator of kernel or granular product that is nearly
identical in size but differs in weight.

Seed Roaster This seeds roasting machine is used for roasting

machine the varieties of seeds like cereals, spices, grains
etc.
 Grinding This machine is commonly used for grinding dried
machine whole spices.

Sifting Machine The sifting machines are used for sieve the fine
powder received from grinding machine.

Packaging This machine is used to pack the finished grinded

Machine Fenugreek powder for market sale.

Material These Equipment’s are used for material

handling. Other equipment’s like unloading bins,
handling and silos, bucket elevator, belt conveyors, etc. are
other also used.

Equipment’s

FINANCIAL ANALYSIS

COST OF PROJECT

PARTICULARS AMOUNT (Rs)

Land & Building Owned/Rented

Plant & Machinery 175

500
25
Miscellaneous Assets 0000
Working capital 43
4000
 243
Total 9000

2. MEANS OF FINANCE

AMOUNT
PARTICULARS (Rs)

Own Contribution (min 10%) 243000

Subsidy @35% (Max. Rs 10 Lac)
702000
Term Loan @ 55%
1103000
Working Capital (Bank Finance)
390000

Total 2439000

TERM LOAN: Term loan of Rs. 11.03 Lakh is required for project cost of
Rs. 24.39 Lakh

TERM LOAN REPAYMENT& INTEREST (Interest 11%/month)

DOOR TO DOOR 60 MONTHS

MORATORIUM PERIOD
6 MONTHS
REPAYMENT PERIOD 54 MONTHS

3. SALARY & WAGES

BREAK UP OF LABOUR CHARGES

Particulars Wages No of Total

Rs. per Month Employees Salary
 Plant Operator 16,000 3 48,000
Supervisor 20,000 1 20,000
Skilled (in thousand rupees) 15,000 3 45,000
Unskilled (in thousand rupees) 7,500 4 30,000

Total salary per month 1,43,000

Total annual labour charges (In lacs) 17.16

BREAK UP OF STAFF SALARY CHARGES

Particulars Salary No of Total

Rs. per Month Employees Salary
Administrative Staff 8,500 3 25,500

Manager 25,000 1 25,000

Accountant 20,000 1 20,000

Total salary per month 70,500

Total annual Staff charges (In lacs) 8.46

4. POWER REQUIREMENT

Utility Charges (Per Month)

Particulars Value Description

Power connection required 16 KWH
consumption per day 128 units
Consumption per month 3,200 units
Rate per Unit 10 Rs.
power Bill per month 32,000 Rs.

5. WORKING CAPITAL CALCULATIONS

COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Finished Goods 214000 251000 289000 330000 375000
 115000 137000 160000 185000 211000
Raw Material
Closing Stock 329000 388000 449000 515000 587000

6. PROJECTIONS OF PROFITABILITY ANALYSIS:

PROJECTED PROFITABILITY STATEMENT

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Capacity Utilisation % 40% 45% 50% 55% 60%

SALES

Gross Sale
Fenugreek Powder 7,93,4000 9,68,4000 1,130,2000 1,302,8000 1,499,2000

Total 7,93,4000 9,68,4000 1,130,2000 1,302,8000 1,499,2000

COST OF SALES

Raw Material Consumed 3,45,6000 4,10,4000 4,800,000 5,544,000 6,336,000

Electricity Expenses 3,84,000 4,22,000 4,65,000 5,11,000 5,62,000

Depreciation
2,88,000 2,46,000 2,10,000 1,80,000 1,54,000
Wages & labour
1,716,000 2,059,000 2,368,000 2,723,000 3,132,000

Repair & maintenance 2,38,000 2,91,000 3,39,000 3,91,000 4,50,000

Packaging 3,33,000 4,07,000 4,75,000 5,47,000 6,30,000

Cost of Production 6,416,000 7,529,000 8,657,000 9,896,000 11,263,000

Add: Opening Stock /WIP
- 2,14,000 2,51,000 2,89,000 3,30,000

Less: Closing Stock /WIP 2,14,000 2,51,000 2,89,000 3,30,000 3,75,000

 Cost of Sales 6,202,000 7,492,000 8,619,000 9,855,000 11,218,000

GROSS PROFIT 1.733,000 2,192,000 2,683,000 3,173,000 3,774,000

21.84% 22.64% 23.74% 24.36% 25.17%

Salary to Staff 8,46,000 1,058,000 1,290,000 1,484,000 1,706,000

Interest on Term Loan 1,08,000 95,000 69,000 42,000 15,000

Interest on working Capital 43,000 43,000 43,000 43,000 43,000

Rent 3,60,000 4,32,000 5,18,000 6,22,000 7,46,000

selling 1,59,000 2,42,000 3,05,000 3,65,000 4,20,000

TOTAL
1,516.000 1,870,000 2,225,000 2,555,000 2,930,000

NET PROFIT 2,17,000 3,22,000 4,58,000 6,18,000 8,44,000

2.73% 3.33% 4.05% 4.75% 5.63%

Taxation - - - 38,000 85,000

PROFIT (After Tax) 2,17,000 3,22,000 4,58,000 5,81,000 7,60,000

7. BREAK EVEN POINT ANALYSIS

BREAK EVEN POINT ANALYSIS

Year I II III IV V
Net Sales & Other Income 7,934,000 9,684,000 11,302,000 13,028,000 14,992,000
Less: Op. WIP Goods - 2,14,000 2,51,000 2,89,000 3,30,000
Add: Cl. WIP Goods 2,14,000 2,51,000 2,89,000 3,30,000 3,75,000

Total Sales 8,148,000 9,721,000 11,340,000 13,070,000 15,037,000

Variable & Semi Variable Exp.

Raw Material Consumed 3,456,000 4,104,000 4,800,000 5,544,000 6,336,000

Electricity Exp/Coal Consumption at
85% 3,26,000 3,59,000 3,95,000 4,34,000 4,78,000
Wages & Salary at 60% 1,537,000 1,870,000 2,195,000 2,524,000 2,903,000
Selling & administrative Expenses 80% 1,27,000 1,94,000 2,44,000 2,92,000 3,36,000
Interest on working Capital 0.429211 0.429211 0.429211 0.429211 0.429211
Repair & maintenance 2,38,000 2,91,000 3,39,000 3,91,000 4,50,000
Packaging 3,33,000 4,07,000 4,75,000 5,47,000 6,30,000
Total Variable & Semi Variable Exp 6,061,000 7,267,000 8,491,000 9,775,000 11,175,00
0
Contribution 2,088,000 2,454,000 2,849,000 3,294,000 3,863,000

Fixed & Semi Fixed Expenses

Electricity Exp/Coal Consumption at 15% 58,000 63,000 70,000 77,000 84,000

Wages & Salary at 40% 1,025,000 1,247,000 1,463,000 1,683,000 1,935,000
Interest on Term Loan 1,08,000 95,000 69,000 42,000 15,000
Depreciation 2,88,000 2,46,000 2,10,000 1,80,000 1,54,000
Selling & administrative Expenses 20% 32,000 48,000 61,000 73,000 84,000
Rent 3,60,000 4,32,000 5,18,000 6,22,000 7,46,000
Total Fixed Expenses 1,871,000 2,132,000 2,391,000 2,676,000 3,018,000

Capacity Utilization 40% 45% 50% 55% 60%

OPERATING PROFIT 2,17,000 3,22,000 4,58,000 6,18,000 8,44,000
BREAK EVEN POINT 36% 39% 42% 45% 47%
BREAK EVEN SALES 7,302,000 8,446,000 9,518,000 10,616,000 11,751,000