| Quality And Standards
: |
IS 3134 Production
Capacity: |
per annum |
| Item |
Qty.
|
Value(Rs.)
|
| (a) Menthol Flakes |
170.1 |
127575000 |
| (b) De-mentholised
oil (DMO) |
72.9 |
14580000 |
| Uploaded on |
13th December 2006 |
|
Introduction
Mint oil and its derivative menthol
is widely used as flavouring ingredient for various products
such as tooth paste, dental cream, cough syrups, confectionery,
pan masala, chewing gums and in pain relieving preparations.
Mentha cultivation in India has proved
quite remunerative to the growers, particularly to small
holders and fitted well in the existing cropping system
in mint growing area in the country, Mint growers consider
mentha as a bonus crop as it does not disturb or replace
the cultivation of any major winter (Rabi) or rainy season
(Kharif) crop. Being a labour intensive crop mentha provides
various employment opportunities in cultivation, distillation,
processing field particularly in rural areas.
There are several species and varieties
of mint oil which are cultivated in one or the other parts
of the world, five of them are grown on commercial scale
in India, these are (I) Menthaarvensis (ii) Mentha-piperita
(iii) Menthaspicata (iv) Mentha-veridish (v) Menthacitrata.
The important mint producing regions
in India are in the states of Uttar Pradesh and Punjab.
The former accounts for about 90% of total area under mint
production, the important mint production cultivation districts
are Jalandhar, Ludhiana and Hoshiarpur.
Product and its Uses
Mentha oil is obtained from the leaves/entire
plant of various mentha species and varieties. The Japanese
mint (Mentha arvensis) is mainly cultivated in our country.
The oil of Japanese mint is used as a source of natural
menthol and dementholised oil (DMO). Because of its refreshing
aroma and cooling effect, Mints have very wide spread use
as flavouring agent in different pharmaceutical preparations.
Market Potential
The mint oil and its derivatives, menthol
and DMO are now being marketed at various locations in North
India as also being exported. The marketing of Japanese
mint oil and menthol is wide spread. India is the second
largest country in production of mints and its derivatives.
India is exporting mints and its derivatives throughout
the world worth Rs. 60-70 crores annually.
Basis and Presumptions
1. The project is based on single shift
basis and 300 working days in a year.
2. Cost of machinery and equipment indicated in the profile
refer to a particular make and prices are approximate to
those prevailing at the time of preparation of project profile.
3. Cost of installation, electrification etc. are taken
as 10% of the cost of machinery and equipment.
4. Depreciation on machinery and equipment has been taken
as 10% of the cost of machinery and equipments.
5. Margin money has been taken as 30% of the total capital
investment.
6. Break-even point has been calculated at the full capacity
utilization.
Implementation
Schedule
The following steps are involved in the implementation of
the project:
| Selection of site |
1 month |
| Preparation of project
profile |
1 week |
| Registration of the
unit from D.I./D.I.C. |
1 week |
| No objection certificate
from Pollution Control Board |
2 weeks |
| Calling of quotations
and preparation of detailed Project report |
1 month |
| Approach to commercial
bank |
1 month |
| Installation and electrification
of machinery and equipment |
2 weeks |
| Recruitment of staff
|
1 month |
| Arrangement
of raw materials and packaging materials |
2 weeks |
Keeping in view overlaps of some of
the activities, the period normally required to implement
the project is 5 to 6 months.
Technical
Aspects Process of Manufacture
The formation of menthol crystals involves:
I. Freezing of the mint oil.
II. Removal of the oil crystals from the residual oil by
centrifuging.
III. Drying of the crystals.
After collection of the mint oil from farmers/brokers, it
should be filtered prior to cooling as it usually contains
some water and mucilaginous impurities, which prevent ready
formation of the menthol crystals. For crystallization some
producers use filter and centrifuge the oil.
(I) Crystallization
Purified oil is slowly and gradually
cooled progressively to lower temperature whereby menthol
crystals form in each operation. The freezing process usually
comprises three steps (I) cool at 14oC (II) 10oC and (III)
–5oC for hours. Some times, actual process takes 48
hours and cooling up to -20oC temperature. Some manufacturers
employ large refrigerators compartment. The large plants
are equipped with regular freezing rooms. The gradual and
slow cooling permits the formation of large and more regular
crystals.
(II) Separation of Menthol Crystals
from the Dementholised Oil
This is performed by first decanting
the remaining liquid oil from the crystal and centrifuging
the crystals in large centrifuges rotating at the speed
of about 1200 RPM. Some producers wash the crystals with
small amount of water during the centrifuge process.
(III) Drying of the Menthol Crystals
The centrifuged crystals are spread
upon the trays in large compartments or Special room dried
for approximately 36 hours in a slow current of air at a
temperature of about 26ºC. This operation must be undertaken
very carefully. Now the crystal is ready for packing and
marketing.
Quality Control and Standards
Menthol crystals are to be made as per
IS 3134.
Production Capacity (per annum)
Capacity :
| (a) Flakes |
170.1 MT |
| (b) De-mentholated
oil |
72.9 MT |
| Value : |
Rs. 142155000 |
Motive Power : 40 K.W.
Pollution Control
The raw materials and process are non-polluting.
However, relevant guidelines and no objection certificate
must be obtained from the State Pollution Control Board.
Energy Conservation
Regular maintenance of plant and machinery
is required for better performance and conservation of energy.
Financial Aspects
A. Fixed Capital
| (i) Land and Building
|
(Rs.)
|
| Land 500sq. mt. @ 5000
sq mt. |
2500000
|
| Covered area 400 sq.
mt.@ Rs. 6000 and boundary wall |
2400000
|
|
Total
|
4900000
|
(ii) Plant and Machinery
| Sl. No. |
Particulars |
Nos. |
Rate (Rs.) |
Value (Rs.)
|
| 1. |
Chilling plant cap. 492 litre,
temp. (50ºC ) chart type |
12 |
75000 |
900000
|
| 2. |
Centrifuge heavy duty R.P.M. 1200
|
4 |
75000 |
300000
|
| 3. |
S.S. reaction vessel 6 with stirrer
cap. 400kg |
6 |
100000 |
600000
|
| 4. |
Dryer capacity 100 kg 12 trays
with Thermostat temperature control |
2 |
300000 |
600000
|
| 5. |
Vacuum filter |
4 |
50000 |
200000
|
| 6. |
S.S Tray for storage |
24 |
10000 |
240000
|
| 7. |
Laboratory Equipment
|
- |
- |
500000
|
| 8. |
Transportation and installation
charge @ 10% of the cost of plant and machinery |
- |
- |
334000
|
| |
|
|
|
3674000
|
B. Working Capital
(i) Staff and Labour (per month )
| Sl. No. |
Designation |
No. |
Salary (Rs.) |
Total (Rs.)
|
| 1 |
Chemist/Manager |
1 |
15000 |
15000
|
| 2 |
Technical Assistant |
4 |
6000 |
24000
|
| 3 |
Skilled Worker |
6 |
5000 |
30000
|
| 4 |
Typist /Clerk |
1 |
5000 |
5000
|
| 5 |
Watchman |
4 |
3000 |
12000
|
|
|
86000
|
|
|
18920
|
|
|
104920
|
(ii) Raw Materials and Packing Materials
(per month)
| Sl.No. |
Particulars |
Qty. |
Rate (Rs.) |
Amount (Rs.)
|
| 1. |
Mint oil |
22500 kg |
400 kg |
10000000
|
| 2. |
Chemicals |
- |
- |
20000
|
| 3. |
Packing materials |
- |
- |
100000
|
|
|
10120000
|
(iii) Utilities (per month)
| Particulars |
Qty. |
Rate(Rs.) |
Total (Rs.)
|
| Power |
2000 unit |
4 |
8000
|
| Fuel |
|
|
15000
|
|
|
23000
|
| (iv) Other Contingent
Expenses |
(Rs.)
|
| 1. Postage/Stationery |
5000
|
| 2. Telephone |
5000
|
| 3. Repair/maintenance
2% Annual of P/M |
6500
|
| 4. Transportation |
50000
|
| 5. Advertisement/publicity
|
25000
|
| 6. Miscellaneous expenses |
10000
|
|
|
101500
|
(v) Total
Working Capital (per month)
= Rs.104920 + 10120000 + 23000 + 101500
= Rs. 10349420
C. Total Capital Investment
| Fixed capital |
8574000
|
| Working capital (3months) |
31048260
|
|
|
39622260
|
Machinery Utilization
Full machinery utilization has been
taken in this project.
Financial Analysis
| (1) Cost of Production
(per annum) |
(Rs.)
|
| Total recurring expenditure |
124193040
|
| Depreciation on building
@ 5% |
120000
|
| Depreciation on plant
and m/c @ 10% |
367400
|
| Interest on total capital
investment @ 12% |
4754671
|
|
|
129435111
|
|
Or Say
|
129435000
|
| (2) Turn Over (per
annum) |
(Rs.)
|
| By sale of : |
| (I) Flakes 170100 kg
@ 750 kg |
127575000
|
| (II) De-mentholised
72900 kg @ Rs 200 kg |
14580000
|
|
|
142155000
|
(3) Profit
(per annum)
Rs. 142155000 – Rs. 129435000 = Rs. 12720000
(4) Rate of
Return
|
=
|
Profit
------------------------- × 100 |
| Total capital investment |
|
=
|
Rs. 12720000
------------------ × 100 |
| Rs. 39622260 |
| |
|
|
=
|
32.1 % |
(5) Net Profit
Ratio
|
=
|
Profit
-------------× 100 |
| Sale |
| |
|
|
=
|
Rs. 12720000
-----------------------x 100
Rs. 142155000 |
| |
|
|
=
|
8.9% |
(6) Break-even Point
| (i) Fixed Cost |
(Rs.)
|
| a. Depreciation on
building @ Rs. 5% |
120000
|
| b. Depreciation on
plant and machinery @ 10% |
3674000
|
| c. Interest on total
capital investment @ 12% |
4754671
|
| d. 40% of salary |
503616
|
| e. 40% of other expenses |
40600
|
|
Total
|
9092887
|
B.E.P.
|
=
|
Fixed cost
× 100
------------------ |
| Fixed cost + profit |
| |
|
|
=
|
Rs. 9092887 x100
---------------------- |
|
=
|
Rs. 9092887 + Rs. 12720000 |
|
=
|
Rs. 9092887
---------------x100 |
| Rs. 21812887 |
| |
|
|
=
|
41.68% |
Addresses of Machinery and Equipment
Suppliers
1. M/s. Wisdoms Scientific Works
10, West Sadar Thana Road,
Delhi-110006
2. M/s. Sandeep Instruments and Chemicals
3229, Ranjit Nagar,
New Delhi-110008
3. M/s. Blue Star Limited
Block 2A, DLF Corporation Park,
DLF Qutab Enclave,
Phase-II, Gurgaon (Haryana)
4. M/s. India Projects and Equipments
Pvt. Ltd.
D-170, Okhla Ind. Estate,
Phase-I,
New Delhi-110020
5. M/s. Fric India Ltd.
Jeevan Vihar-3,
Parliament Street,
New Delhi.
6. M/s. Jindal Refrigeration
26, Netaji Subash Marg,
Darya Ganj,
New Delhi-110002
7. M/s. Valcan Laval Ltd.
Depodi,
Pune-I, (M.S.)
8. M/s. Adair Dut and Co India Pvt.
Ltd.
2, Asaf Ali Road,
New Delhi-110002
9. M/s. Chemida (India)
Nagabkak Bazar,
347, Grant Road,
Mumbai.
10. M/s. Hind Hungh Caccum Co. Pvt.
Ltd.
1024, Chord Road,
Rajaji Nagar,
Bangalore.
11. M/s. Anup Engineering Ltd.
Anil Starches Premises,
Anil Road,
Ahmedabad
12. M/s. A. R. Packaging Systems Ltd.
Sarvodaya, 1-10-6/3,
Begumpet,
Hyderabad - 110016
Addresses
of Raw Material Suppliers
Mint oil be collected for U.P. Namely from Badaun, Barely,
Muradabad, Rampur and Barabanki etc.
