Pea-Nut Butter
Uploaded on : July 2019
Introduction
In India, ground-nut is primarily considered an oil seed and only a small quantity of this oil seed is directly used as food. The per capita consumption of ground-nut in remote areas of our country has been estimated to be less than 5 gm/day. Ground-nuts have been recommended as a good source of protein. The ground-nut cake and flour is now generally used in the preparation of protein isolate and weaning foods. Pea-nut butter is made from pea-nut, vegetable fat, salt and sugar, etc. and is of delicious flavour and high nutritive value like milk butter with low cost. It has butter like consistency and can be used as a substitute for butter. The approximate composition of the peanut butter (in gm./100 gm.) is as follows:
• Moisture : 1.8-2%
• Protein : 24-27%
• Fat : 36-49%
• Carbohydrate : 12-17%
• Crude fibre : 2%
• Ash : 3.5-4.0%
• Calories/100 gm. : 580
Market Potential
Due to shortage of milk in the country, butter is becoming costlier day by day and is gradually going beyond the reach of the common people. The main raw material for pea-nut butter is ground-nut which is available in reasonable quantity. The ground-nut can be best utilized for the production of Pea-nut Butter to cater to the needs of the common people. It has good market potential.
Basis and Presumptions
The profile is drawn on the basis of following presumptions:
• Working hours/shift : 8 hours
• No. of shift/day : 1
• Working days : 300
• Total Number of working hours: 2400
• Working efficiency : 75%
• Time period for achieving maximum capacity utilization: 3rd year from the date from which production will be started
• Labour charges: As per the Minimum Wages Act of State Government
• Margin money: 25% of capital investment
• Rate of interest on fixed and working capital: 15%
• Operative period of the project: 10 years
• Rent : Covered area– Rs. 30 Sq.mtr. Uncovered area– Rs. 10 Sq.mtr.
Value of the machinery and equipment has been estimated on the basis of prevailing prices in the market.
Implementation Schedule
Project implementation will take a period of 8 months from the date of approval of the scheme. Break-up of activities with relative time for each activity is shown below:
• Scheme preparation : 0-1 month and approval
• SSI provisional : 1-2 months registration
• Sanction of loan : 2-5 months
• Clearance from Pollution Control Board: 3-4 months
• Placement of order for delivery of machines: 3-5 months
• Installation of machines: 6-7 months
• Power connection : 6-7 months
• Trial run : 7-8 months
• Commencement of production onwards: 9 months
Technical Aspects
Process of Manufacture
Best quality pea-nuts (ground-nuts) are selected. After decortication, the kernels are roasted carefully in an oven with continuous stirring until they begin to brown. The temperature should not exceed 240º F. When an oven is used, care is necessary in roasting the nuts otherwise the butter will have darkened colour and burnt taste. If these are under roasted, these lack flavour and colour and do not keep well. The roasted kernels are separated into halves by rubbing on a sieve. The skin and ‘germ' or embryo are then removed. The presence of the germ is liable to cause the butter to go rancid sooner than it would otherwise and the skins show up red specks and give a slightly bitter taste. The white kernels are made into a paste neither too fine nor too coarse in a grinder. Before grinding, it is usual to add salt 1-3 percent and also sugar according to taste. To stabilize the peanut butter, solid hydrogenated fats such as Dalda, Marvo, etc. are added to the paste upto 2 percent, the amount depending upon the type of nuts, degree of solidity and the temperature. The mixture is then run through a homogeniser. There is no necessity of adding any chemical preservatives to the pea-nut butter. However, some anti–oxidants are added to stabilize the pea-nut butter. The butter can be kept in closed jars in a cool, dry place for several months. It is packed in cans and sterilized. Rust resistant lacquered cans should be used.
Quality Control and Standards
Product must meet PFA regulations. However, ISI specification for peanut butter is IS:9037:1979. It may also be manufactured as per the consumers' choice of taste and aroma. Production Capacity The scheme has been drawn for the manufacture of 1000 Kg. salted pea-nut butter per day and the sale value of the finished product has been taken into account @ Rs 60 per Kg. Motive Power The estimated power requirement for the plant and machinery including lighting and fittings is approximately 55 HP or 40 KW.
Pollution Control
The proposed unit for the manufacturing of peanut butter does not cause any pollution and hence does not require any precautionary steps to be taken for pollution control. However, no objection certificate may be obtained from the concerned State Pollution Control Board. Energy Conservation Only motive power is used to operate various machinery and equipment and hence care should be taken in operating machinery to minimize the electrical consumption.
Financial Aspects
Fixed Capital Land & Building
Particulars |
Amount (In Rs.) |
Building 400 sq.mtr. including manufacturing area, storage, office etc. (covered) rented @ Rs. 30 per sq.mtr. |
12,000 |
Uncovered area 100 sq.mtr @ Rs. 10 sq.mtr. |
1,000 |
Total |
13,000 |
Machinery and Equipment
Sl. No. |
Description |
Qty. |
Total (Rs. in lakhs) |
1. |
Decorticator with 5 HP motor complete set |
|
3.95
|
2 . |
Separator with 5 HP motor |
|
|
3. |
Roaster oil circulating type rotary with 12.5 HP motor |
|
|
4. |
Conveyor with 2 HP motor set |
|
|
5. |
Pulversier 30" with cyclone separator, dust collector with 22 HP motor |
1 |
1.00 |
6. |
Homogeniser with motor |
1 |
1.25 |
7. |
Miscellaneous equipments including weighing scales and others |
L.S. |
0.60 |
Laboratory equipment installation and electrification |
0.40 |
||
Office furniture and equipments |
0.35 |
||
Total |
7.55 |
||
Preliminary and Pre-operative Expenses |
Total (Rs. in lakhs) |
Legal expenses, establishment cost, travelling, start-up expenses, consultancy fee, estimate fee, interest during construction, trial run expenses, etc. |
1.25 |
Total Fixed Capital |
8.80 lakhs |
Machinery Utilization
The production capacity of the project has been taken @ 1000 Kg. per day in single shift. It is estimated that production may be enhanced three-fold by running three shifts. It is estimated that 35 to 40% capacity of the machinery will be utilized in single shift production.
Financial Analysis
Cost of Production (per year) |
Total (Rs. in Lakhs) |
Total recurring cost |
121.56 |
Depreciation on machinery and equipment @ 10% p.a |
0.76 |
Interest on total investment @ 15% p.a |
5.88 |
Total |
128.20 |
Turnover (per year) |
Amount (In Rs.) |
By the sale of 3,00,000 Kg. of Pea-nut @ Rs. 60 Kg. |
180.00 |
Less Commission 20% |
36.00 |
Total |
144.00 |
Net Profit (per year) (Before Income Tax)
= Total Sales – Cost of Production
= 144 – 128.20
= 15.80 lakhs
Net Profit Ratio Rs. 11%
Rate of Return Rs. 40%
Break-even Point
Fixed Cost (per annum) |
Total (Rs. in lakhs) |
Rent of premises |
1.56 |
Depreciation on plant and machinery |
0.76 |
40% of salary and wages |
2.07 |
40% of utilities and other expenses |
1.75 |
Insurance charges |
0.12 |
Interest on total investment |
5.88 |
Total |
12.14 |
Net Profit (per year) Rs. 15.80
B.E.P. = Fixed Cost × 100 Fixed cost + Net profit
= 12.14 × 100 12.14+15.80
= 44%
Addresses of Machinery and Equipment Suppliers
• M/s. Unitech Engg. (P) Ltd. Post Box No. 199, Ambala Road, Saharanpur (U.P)
• M/s. Larsen and Tubro Ltd. 10, House Bellard Estate, P.B. No. 278, Mumbai.
• M/s. Alfa Level Ltd. 10A, Hochi-Min Sarani, Kolkata-700071.
• M/s. Container Industries Block -C, Unit No. 299, Ghat Koper Industrial Estate, 72, Lal Bahadur Marg, Mumbai.
• M/s. Pasteur Engg. Co (P) Ltd. 15/8/A, The Mall Road, Dum Dum, Kolkata-700085.
Source
Ministry of Micro, Small & Medium Enterprises
Government of India
Nirman Bhavan,
New Delhi - 110011
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
