SUGAR GLOBULES

PRODUCT CODE : 21001 (NIC Code)

QUALITY STANDARDS : As per FSSAI and IP

PRODUCTION CAPACITY : Qty.: 200 Quintals and

Value : Rs.110 lakhs

MONTH AND YEAR : February, 2021

OF PREPARATION

PREPARED BY : Shri. Martin P Chacko (Food)

Assistant Director
MSME Development Institute
Kanjani Road, Ayyanthole
Thrissur – 680003
Email: dcdi-thrissur@dcmsme.gov.in

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1. INTRODUCTION

As Medical Science Progress is increasing day-by-day likewise the side effect of

allopathic medicines are also being seen in the world. Looking to the adverse effect of
allopathic medicines population is moving towards the Ayurvedic and Homeopathic
Medicines because it is well known hat adverse effect of homoeopathic and Ayurvedic
medicines are quite low. Therefore, demand of homeopathic medicines is increasing
day-by-day and demand of sugar globules is also increasing because Homoeopathic
medicines can only be taken with sugar globules or water due to sweet nature and easy
solubility in mouth. Sugar globules are mainly being used by homoeopathic doctors.
Hence we can say that industry of Sugar Globules have bright future. In manufacturing
of sugar globules basic raw material is sugar which is easily available in each and every
part of country. Besides this sugar globules have good absorption power than other
globules and easily absorb the homoeopathic drug without any change in composition
and property.

2. MARKET POTENTIAL

Basic consumption of sugar globules is in homoeopathy, because drug used in

homoeopathy is either to be taken with sugar globules or water. Therefore, due to
sweet taste these globules are being used by doctors or physicians of homoeopathy.
Basic difference between manufacturing cost and selling prize is very high, hence it can
be sold to wholesalers only.

3. BASIS & PRESUMPTIONS

The Project has been drafted taking into account of the following aspects:

1. No. of working shifts in a day : 1

2. Duration of shift in term of time : 8 Hrs
3. No. of working days in a year : 300
4. Working efficiency of the unit : 75%
5. Interest on Capital Investment : 12% p.a.
6. Construction of building (built up area will be in accordance with the provision
of laid down by LSG.

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 7. The estimates are drawn from a production capacity generally considered
techno-economically viable for a modern type of manufacturing unit
8. The wages of the Staff and Labour is taken as per the prevailing Labour Wages
Laws.
9. The entire expenditure will be borne by entrepreneur.
10. The rate of interest has been shown as applicable.
11. Plant and Machinery, Testing equipment and all other equipments used in
manufacturing.
12. Although the unit is free from pollution and effluent discharge but still provision
of exhaust fan may ensure the fresh environment.

4. IMPLEMENTATION SCHEDULE

1. Preparation of Project Profile 0.5 months

2. Licenses and Registration 1 month
3. Financial Assistance from Institutions 1 month
4. Building construction/Power connection 0.5 months
5. Machinery Procurement and Installation 2 months
6. Recruitment of staff and labour 0.5 months
7. Actual Commercial Production 0.5 months
Total 6 Months

5. TECHNICAL ASPECTS

5.1. Process of Manufacturing

Manufacturing process of sugar globules may be shown as follows:

1. Grinding of sugar
2. Formation of Globules
3. Drying
4. Coating

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 1. Grinding of Sugar
In this process sugar grinds with grinder to fine mesh and further filters through
sieve, so that any unwanted material may be sorted out easily.

2. Formation of Globules
In this process sugar generally mixes with water and paste is formed. Granules
of sugar are prepared when this paste is rubbed on the surface on sieve.

3. Drying
These granules are dried in tray drier to remove/eliminate moisture of the
product.

4. Coating
In this process dried sugar globules kept in coating machine having
arrangements of spray drier may be coated to desired size with sugar solution.
Quality of the product should be translucent or opaque in nature

5.2. Pollution Control

There is no pollution, however, unit has to obtain NOC from Pollution Control
Authorities.

5.3. Energy Conservation

Electricity may be conserved as follows:

1. Use of high efficiency motors.

2. Downsizing the motor.
3. Use of soft starter-cum-energy saver
4. Use of variable speed drivers.
5. Use of automatic voltage regulators.
6. Avoid use of Re-wounded motors.
7. Avoid idle running of motors.

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6. FINANCIAL ASPECTS

6.1. FIXED CAPITAL

6.1.1. Land & Building

Land 250 Sq. mtr. @ Rs.1,000 per Sq.mtr Rs.2.5 lakh

Building – Covered area 200 Sq.mtr. having the

construction of manufacturing shed, store of
raw material, finished products room and office.
Construction value @ 3000 per Sq.mtr Rs.6.0 lakh

Total value of Land and Building Rs.8.5 lakh

6.1.2 Plant and Machinery

Description Rate Nos. Amount

(Rs.) (in Rs.)
Grinder with motor of 5 HP for grinding of sugar 1,00,000 1 No. 1,00,000

Tray drier capacity of 96 trays, electrically heated, 40,000 1 No. 40,000

complete with fan, heating coil, digital temperature
controller and indicator have arrangement of
circulating air
Sieves of different mesh 4000 5 Nos. 20,000

Tableting machine with motors and punches 85,000 1 No. 85,000

Coating pan made of SS with arrangement of heater and 1,00,000 1 No. 1,00,000
air blowing
Degrader having arrangement of 15 Nos. sieves for 1,40,000 1 No. 1,40,000
various mesh and 5 HP motor capacity 100hg per hour
(can be locally for serviceable)
Physical weighing balance 25,000 1 No. 25,000
Lab equipments, glassware, plastic ware and other 15,000 1 No. 15,000
equipments like sealing machine etc.
Total 5,25,000

Say 5.25 lakhs

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Erection and Electrification 10% Rs. 52,500

Furniture, Almirah and PC Rs.1,00,000

Pre-operative Expenses Rs.20,000

Total Fixed Capital requirement Rs. 15.48 lakhs

6.2. Working Capital (per month)

6.2.1. Raw material

Description quantity Rate Total (Rs.)

Sugar 200 Quintals 2,500 5.00 lakh
Polythene bag for packing 0.60 lakh
Additives used for brightness 1.00 lakh
and colour
Total 6.60 lakh

6.2.2. Personnel
Description Nos. Salary/Month (Rs.) Total (Rs.)
Manager-cum-Chemist 1 20,000 20,000
Skilled Workers 2 8,000 16,000
Unskilled Workers 4 5,000 20,000
Sales Representatives 1 5,000 5,000
Peon-cum-Chowkidar 1 5,000 5,000
Total Rs. 66,000

6.2.3. Utilities & Other Expenses

Electricity : Rs. 10,000

Water : Rs. 4,000
Transportation : Rs. 7,500
Repairing & Maintenance : Rs. 3,000
Insurance : Rs. 2,000
Advertisement & Publicity : Rs. 1,500
Postage & Stationery : Rs. 500
Miscellaneous : Rs. 1,000
_____________
Total : Rs.29,500

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6.2.4. Total Recurring Expenses (per month) : Rs.7.55 lakhs

6.3. Total Capital Investment

Working Capital (for 3 months) : Rs. 22.65 lakhs

(Rs.7.55 x 3)
Fixed Capital Investment : Rs. 15.48 lakhs
Total : Rs. 38.13 lakhs

7. FINANCIAL ANALYSIS

7.1. Cost of Production per annum

Sl.No. Description Amount (Rs.)
1. Recurring Expenses 90.60 lakhs
2. Depreciation on Plant & Machinery @10% 0.52 lakhs
3. Depreciation on building @5% 0.30 lakhs
4. Depreciation on Furniture @20% 0.20 lakhs
5. Interest on total capital Investment @ 12% 4.57 lakhs
Total Rs. 96.19 lakhs

7.2. Turnover per annum

Sl.No. Item Qty. (Quintals) Rate (Rs./Quintals) Value (Rs.)

1. Sugar Globules 200 0.55 lakhs 110.00 lakhs

7.3. Profit (per annum)

= Turnover – Cost of Production
= 110.00 lakhs – 96.19 lakhs
= Rs.13.81 lakhs

7.4. Net Profit Ration

Net Profit per year

= _____________________ X 100
Turnover per year
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 13.81
= ____________ X100
110.00

= 12.55%

7.5. Rate of Return

Profit x 100
= ______________________________
Total Capital Investment

13.81 x 100
= _________________
38.13

= 36.21%

7.6. Break-even Point

Annual Fixed Cost Total (Rs. In lakhs)

40% Salaries 3.16
40% other Expenses 1.41
Total Depreciation 1.02
Interest on Total Capital Investment 4.57
Total 10.16

Break-even Point
Annual Fixed Cost x 100
= _________________________
Annual fixed cost + Profit

10.16 x 100
= ________________
10.16 + 13.81

= 42.38 %

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Addresses of Machinery and Equipment Suppliers

1. M/s. Pioneer Engineering Co.

57, Mumbai Samachar Marg,
Mumbai– 400001

2. M/s. Pharma Each

10, Chaulpatty Road,
(Belighata)
Kolkata – 700010

3. M/s. Railas Machine Tools

12, Harshad Estate,
Namtanagar, Pm. Virat Ptagar,
Char Rasta, Rakhial (Bapu Nagar
Ahmedabad - 580024

4. M/s. Amba Engineers.

6, Laxmi Indl. Estate,
Navneet Prakashan Compound
Rakhial, Ahmedabad - 580025

5. M/s. Ambica Machine Tools,

Plot No.1, Phase 11,G I DC, Vatva,
Ahmedabad – 580043

6. M/s. Cip Machines Pvt. Ltd,

10-11, Umiya Estate,
Nr. Bharat Party Plot,
N.H. Road – 8, Amrawadi,
Ahmedabad – 580026

7. M/s. Darshan Chaudhry

Prashant Press,Gulabi Bagh
New Delhi

Raw Material suppliers

Local Market