SPIRULINA Manufacturing Unit

-PROJECT REPORT FOR FINANCIAL ASSISTANCE

Submitted by: Prepared by:

HARI HARA ENTERPRISES AAREVARAPU & CO
REDDY CHAITANYA MADHAV Chartered Accountants
TABLE OF CONTENTS

S.No Particulars Page No.

1 BRIEF NOTE- ABOUT SPIRULINA 1
2 PROJECT AT A GLANCE 2
3 Computation Of Raw Material Consumption 3
4 Computation of Annual Sales 4
5 Breakup of Labor Charges 5
6 Computation of Electricity charges 6
7 Computation of Depreciation 7
8 PROJECTED FINANCIALS 8
I. PROFITABILITY STATEMENT
II. BALANCESHEET
9 Debt Service Coverage Ratio 10
10 Key Financial Indicators 11
11 Term Loan Repayment Schedule 12
 BRIEF NOTE – ABOUT SPIRULINA

Spirulina is a microalga which is spiral-shaped that grows naturally in the wild in warm
and fresh water lakes. It is blue - green algae. Dried spirulina contains approximately 60-70
% protein, Vitamin A, B, and K. There are multiple benefits of spirulina. It has powerful
anti-oxidant, anti-cancer and anti-inflammatory properties. It is also effective against
anemia and controlling blood sugar. Owing to all these properties spirulina is considered as
today’s super food.

It helps in healing wounds and lowers LDL cholesterol. It is used as a protein supplement
for malnourished children and adults; it is used in cattle, poultry and marine feed; in health
care sector; in medicine; in therapeutic preparations; and in sericulture and horticulture
media. Since spirulina provides all the essential nutrition without excess calories and fats,
those wanting to control obesity take spirulina tablets. Spirulina is extremely popular as a
health food, without any side effects, and non-habit-forming.

The manufacturing consists of: 1) Cultivation 2) harvesting and 3) Processing Selected

strains of algae are used for cultivation in constant agitation of water. This is an important
parameter in the cultivation of spirulina. Agitation of algae culture is necessary to keep
nutrients evenly dispersed and also to expose all the cells to sunlight. The algal biomass is
carefully harvested using specially made filters to recover the biomass. The harvested
biomass is dried using the cross flow drier. The produce obtained is in the form of flakes. It
is ground in the pulveriser to get the powder of the desired mesh size. To get an optimal
yield, maintenance of required nutrient level, cell density, culture depth etc., are some of
the critical parameters in the process of spirulina cultivation.

Spirulina is considered as one of super food and food for future due to its excellent
medicinal properties in view of commercial cultivation picking up in India, and due to high
potential in domestic and export market, industrial out-look for this industry is very good
and promising high growth trends.

The demand of spirulina powder is increasing in food and beverage industry as a food
supplement salads, breakfast meals, dessert and many other food products like soft drinks
because of its rich and higher nutritional values. European and Asia Pacific are the largest
market of spirulina products as due to increasing demand of dietary supplements among
health conscious and aging population. It is marketed by medical distributers in urban and
semi-urban areas. It has been effectively promoted as a natural health and slimming food in
the market.
 PROJECT AT A GLANCE

1 Business Name HARI HARA ENTERPRISES

2 Address Alluru, Eluru Dt, AP- 521343
3 Manufacturing Unit Alluru, Eluru Dt, AP- 521343
4 Constitution Proprietorship
5 Proprietor Name Mr. Reddy Chaitanya Madhav

Cost of Project ( INR in Lakhs)

Particulars INR
Land -
Machinery 20.00
Working Shed 3.00
Production Ponds 8.50
Working Capital 11.50
Total 43.00

Means of Finance ( INR in Lakhs)

Particulars INR
Proprietor contribution 2.15
Term Loan 29.35
Working Capital Loan 11.50
Total 43.00

PMEGP Subsidy @35% - 15.05 Lakhs

Margin Money Subsidy received from KVIC will be kept in Term-Deposit as per norms
of PMEGP in the name of Beneficiary for three years in the financing branch.
Computation of Raw Material Consumption

Raw Material Cost (INR) Monthly Quantity(Kg) Monthly cost

Sodium Bicarbonate 50/kg 667 33,333.33

Sodium Chloride 12/kg 42 500.00

Sodium Nitrate 100/kg 50 5,000.00

Potassium Sulphate 110/kg 33 3,666.67

Magnesium Sulphate 80/kg 31 2,500.00

Hydrogen Phosphate 175/kg 33 5,833.33

Ferrous Sulphate 60/kg 5 325.00

Total 51,158.33

No.of.Months 12
Raw material cost per annum 613,900

Cost in Lakhs 6.14

Yearly Consumption Of Raw Material (INR in Lakhs)

Year Capacity Utilization INR
2024-25 80% 4.91
2025-26 90% 5.52
2026-27 100% 6.14
2027-28 100% 6.14
2028-29 100% 6.14
 Computation of Annual Sales

Particulars 2024-25 2025-26 2026-27 2027-28 2028-29

200.0 225. 275
Opening Stock (in Kgs) - 0 00 250.00 .00
4,0 4,500.0 5,000. 6,050
Production (in Kgs) 00.00 0 00 5,500.00 .00
2 225.0 250. 302
Less: Closing Stock 00.00 0 00 275.00 .50
3,8 4,475.0 4,975. 6,022
Net Sales (in Kgs) 00.00 0 00 5,475.00 .50
9 990.0 1,089. 1,317
Sale Price per Kg 00.00 0 00 1,197.90 .69
34,20,0 44,30,250.0 54,17,775. 65,5 79,35,788
Total Sales (INR) 00.00 0 00 8,502.50 .03
44.3 54. 79
Total Sales (INR Lakhs) 34.20 0 18 65.59 .36
Breakup of Labor Charges

Particulars Wages per Month No.of.Employees Total Salary

Unskilled Worker 1600 10 16,000.00
Skilled Workers 15000 1 15,000.00
Total Labor charges p.a (INR) 372,000.00
Total (in Lakhs) 3.72

Yearly Labor Charges (INR in Lakhs)

Year Capacity Utiization INR
2024-25 80% 2.98
2025-26 90% 3.34
2026-27 100% 3.72
2027-28 100% 3.72
2028-29 100% 3.72

Computation of Electricity Charges

 Electricity Charges
Total Working Hours per day Hours 8
Electric Load Required Kw 10
Electricity charges per unit 8
Total Working Days 300
Electricity Charges 192,000.00

Add: Minimum Charges @10% 19,200.00

Total cost of Power & Fuel @100% 211,200.00

Total cost (in Lakhs) 2.11

Yearly Electricity Charges (INR in Lakhs)

Year Capacity Utilization INR
2024-25 80% 1.69
2025-26 90% 1.90
2026-27 100% 2.11
2027-28 100% 2.11
2028-29 100% 2.11

Computation of Depreciation (WDV Method)

 WDV at the year end
Particulars
2024-25 2025-26 2026-27 2027-28 2028-29
Plant & Machinery 20.00 17.00 14.45 12.28 10.44
Depreciation@15% 3.00 2.55 2.17 1.84 1.57
WDV 17.00 14.45 12.28 10.44 8.87

Building 11.50 10.35 9.32 8.38 7.55

Depreciation@10% 1.15 1.04 0.93 0.84 0.75
WDV 10.35 9.32 8.38 7.55 6.79

Land 0.00 0.00 0.00 0.00 0.00

Fixed Assets
(WDV) 27.35 23.77 20.67 17.99 15.66

Total Depreciation
(INR Lakhs) 4.15 3.59 3.10 2.68 2.32

PROJECTED FINANCIALS
 I. PROFITABILITY STATEMENT FOR THE YEAR ENDED:

(INR in Lakhs)
Particulars 31/03/2025 31/03/2026 31/03/2027 31/03/2028 31/03/2029
Capacity Utilization 80% 90% 100% 100% 100%
A. INCOME
Revenue from Operations 34.20 44.30 54.18 65.59 79.36

B. EXPENSES
Raw Material
Consumption 4.91 5.53 6.14 6.14 6.14
Labor Charges 2.98 3.35 3.72 3.72 3.72
Electricity Charges 1.69 1.90 2.11 2.11 2.11
Depreciation 4.15 3.59 3.10 2.68 2.32
Other Operating Expenses 2.05 2.26 2.48 2.73 3.00
Operating Cost 15.78 16.61 17.55 17.38 17.29
Add: OP stk (Finished) 0.00 1.80 2.23 2.72 3.29
Less: CL stk (Finished) 1.80 2.23 2.72 3.29 3.99
C. TOTAL COST OF
OPERATIONS 13.98 16.18 17.05 16.81 16.60
D. INTEREST
Cash Credit 1.1 1.1 1.1 1.1 1.1
Term Loan @ 12% 3.02 3.22 2.57 1.85 1.04
E. SELLING & ADMIN. EXP 0.17 0.22 0.27 0.33 0.40
F. PROFIT BEFORE TAX 15.94 23.58 33.18 45.50 60.23
G. PROFIT BEFORE DEP &
TAX 20.09 27.17 36.28 48.18 62.55
H. REPAYMENT OF TERM
LOAN 0.43 5.06 5.70 6.43 7.24
I. TAX EXPENSE 3.19 4.72 6.64 9.10 12.05
J. PROFIT AFTER TAX 12.75 18.86 26.54 36.40 48.18
K. NET CASHFLOW 19.66 22.11 30.58 41.76 55.31

II. Balance sheet as at:

(INR in Lakhs)
Particulars 31/03/2025 31/03/2026 31/03/2027 31/03/2028 31/03/2029
A. ASSETS
Fixed Assets 27.35 23.77 20.67 17.99 15.66
Closing Stock 1.80 2.23 2.72 3.29 3.99
Trade Receivables 19.71 35.44 56.00 83.50 120.83
Cash & Bank
Balance 0.2 0.22 0.25 0.28 0.3
Total (A) 49.06 61.65 79.63 105.06 140.78

B. LIABILITIES
Proprietor's
Capital 2.15 12.99 29.02 51.58 82.52
Add: Subsidy 0.00 0.00 0.00 0.00 0.00
Add: Profit 12.75 18.86 26.54 36.40 48.18
Less: Drawings 1.91 2.83 3.98 5.46 7.23
Capital Balance 12.99 29.02 51.58 82.52 123.48
Bank Term Loan 20.57 16.83 12.15 7.44 2.18
Working Capital
Limit 11 11 11 11 11
Sundry Creditors 4.5 4.8 4.9 4.1 4.12
Total (B) 49.06 61.65 79.63 105.06 140.78

Debt Service Coverage Ratio (A/B)= Net Operating Income/Debt Service

Particulars 2024-25 2025-26 2026-27 2027-28 2028-29

Profit before Dep & Tax 20.09 27.17 36.28 48.18 62.55
Interest on Term Loan 3.02 3.22 2.57 1.85 1.04
Total of A 23.10 30.38 38.85 50.03 63.58

Term Loan Interest 3.02 3.22 2.57 1.85 1.04

Repayment of TL 0.43 5.06 5.70 6.43 7.24
Total of B 3.45 8.28 8.28 8.28 8.28

DSCR (A/B) 6.70 3.67 4.69 6.05 7.68

Average DSCR= 5.76

Key Financial Indicators

S.No Particulars 2024-25 2025-26 2026-27 2027-28 2028-29

1 No.of.Months 10 12 12 12 12
 2 Net Sales 34.20 44.30 54.18 65.59 79.36
3 Profit Before Tax (PBT) 15.94 23.58 33.18 45.50 60.23
4 Net Cash Flow 19.66 22.11 30.58 41.76 55.31
5 Proprietor's Capital 12.99 29.02 51.58 82.52 123.48
6 Tangible Net worth (TNW) 12.99 29.02 51.58 82.52 123.48
Total Outstanding
7 Liabilities (TOL) 31.57 27.83 23.15 18.44 13.18
8 TOL/TNW (7/6) 2.43 0.96 0.45 0.22 0.11
9 Current Assets 21.71 37.89 58.97 87.08 125.11
10 Current Liabilities 15.50 15.80 15.90 15.10 15.12
11 Current Ratio (9/10) 1.40 2.40 3.71 5.77 8.27

Term – Loan Repayment Schedule

Sr. No. Date Principal EMI Interest Principal Balance
Amount O/S Payment Payment
M 01/06/2024 29,50,000 - 29,500 (29,500) 29,79,500
M 01/07/2024 29,79,500 - 29,795 (29,795) 30,09,295
M 01/08/2024 30,09,295 - 30,093 (30,093) 30,39,388
M 01/09/2024 30,39,388 - 30,394 (30,394) 30,69,782
M 01/10/2024 30,69,782 - 30,698 (30,698) 31,00,480
1 01/11/2024 31,00,480 68,968 31,005 37,964 30,62,516
2 01/12/2024 30,62,516 68,968 30,625 38,343 30,24,173
3 01/01/2025 30,24,173 68,968 30,242 38,727 29,85,446
4 01/02/2025 29,85,446 68,968 29,854 39,114 29,46,332
5 01/03/2025 29,46,332 68,968 29,463 39,505 29,06,827
6 01/04/2025 29,06,827 68,968 29,068 39,900 28,66,927
7 01/05/2025 28,66,927 68,968 28,669 40,299 28,26,627
8 01/06/2025 28,26,627 68,968 28,266 40,702 27,85,925
9 01/07/2025 27,85,925 68,968 27,859 41,109 27,44,816
10 01/08/2025 27,44,816 68,968 27,448 41,520 27,03,296
11 01/09/2025 27,03,296 68,968 27,033 41,935 26,61,360
12 01/10/2025 26,61,360 68,968 26,614 42,355 26,19,005
13 01/11/2025 26,19,005 68,968 26,190 42,778 25,76,227
14 01/12/2025 25,76,227 68,968 25,762 43,206 25,33,021
15 01/01/2026 25,33,021 68,968 25,330 43,638 24,89,383
16 01/02/2026 24,89,383 68,968 24,894 44,075 24,45,308
17 01/03/2026 24,45,308 68,968 24,453 44,515 24,00,793
18 01/04/2026 24,00,793 68,968 24,008 44,961 23,55,832
19 01/05/2026 23,55,832 68,968 23,558 45,410 23,10,422
20 01/06/2026 23,10,422 68,968 23,104 45,864 22,64,558
21 01/07/2026 22,64,558 68,968 22,646 46,323 22,18,235
22 01/08/2026 22,18,235 68,968 22,182 46,786 21,71,449
23 01/09/2026 21,71,449 68,968 21,714 47,254 21,24,195
24 01/10/2026 21,24,195 68,968 21,242 47,727 20,76,468
25 01/11/2026 20,76,468 68,968 20,765 48,204 20,28,264
26 01/12/2026 20,28,264 68,968 20,283 48,686 19,79,579
27 01/01/2027 19,79,579 68,968 19,796 49,173 19,30,406
28 01/02/2027 19,30,406 68,968 19,304 49,664 18,80,742
29 01/03/2027 18,80,742 68,968 18,807 50,161 18,30,580
30 01/04/2027 18,30,580 68,968 18,306 50,663 17,79,918
31 01/05/2027 17,79,918 68,968 17,799 51,169 17,28,749
32 01/06/2027 17,28,749 68,968 17,287 51,681 16,77,068
33 01/07/2027 16,77,068 68,968 16,771 52,198 16,24,870
34 01/08/2027 16,24,870 68,968 16,249 52,720 15,72,150
35 01/09/2027 15,72,150 68,968 15,722 53,247 15,18,903
36 01/10/2027 15,18,903 68,968 15,189 53,779 14,65,124
37 01/11/2027 14,65,124 68,968 14,651 54,317 14,10,806
38 01/12/2027 14,10,806 68,968 14,108 54,860 13,55,946
39 01/01/2028 13,55,946 68,968 13,559 55,409 13,00,537
40 01/02/2028 13,00,537 68,968 13,005 55,963 12,44,574
41 01/03/2028 12,44,574 68,968 12,446 56,523 11,88,051
42 01/04/2028 11,88,051 68,968 11,881 57,088 11,30,963
43 01/05/2028 11,30,963 68,968 11,310 57,659 10,73,304
44 01/06/2028 10,73,304 68,968 10,733 58,235 10,15,069
45 01/07/2028 10,15,069 68,968 10,151 58,818 9,56,251
46 01/08/2028 9,56,251 68,968 9,563 59,406 8,96,845
47 01/09/2028 8,96,845 68,968 8,968 60,000 8,36,845
48 01/10/2028 8,36,845 68,968 8,368 60,600 7,76,245
49 01/11/2028 7,76,245 68,968 7,762 61,206 7,15,039
50 01/12/2028 7,15,039 68,968 7,150 61,818 6,53,221
51 01/01/2029 6,53,221 68,968 6,532 62,436 5,90,785
52 01/02/2029 5,90,785 68,968 5,908 63,061 5,27,724
53 01/03/2029 5,27,724 68,968 5,277 63,691 4,64,033
54 01/04/2029 4,64,033 68,968 4,640 64,328 3,99,705
55 01/05/2029 3,99,705 68,968 3,997 64,971 3,34,734
56 01/06/2029 3,34,734 68,968 3,347 65,621 2,69,113
57 01/07/2029 2,69,113 68,968 2,691 66,277 2,02,835
58 01/08/2029 2,02,835 68,968 2,028 66,940 1,35,895
59 01/09/2029 1,35,895 68,968 1,359 67,610 68,286
60 01/10/2029 68,286 68,968 683 68,286 0
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