Noodles
Uploaded on : June 2019
Introduction
Fresh noodles are an extruded product made of tapioca flour and maida. They are long thread-like of 0.22 to 0.4 mm. thickness. This is a eatable food item under instant food products and very popular now-a-days as break fast food. It is one of the most conventional foods available in the market.
Market Potential
Noodles and chowmein, a ready-to-eat food item is very popular in developed countries and now it has created good market potential in our country also and is becoming a popular item. The factors governing its demand are:
• Increasing population of the country.
• Rapid industrialization in the country.
• Increase in the purchasing capacity of the people.
• Durability of the product.
• Change in people's eating habits especially the younger generation.
• It is ready-to-eat product.
• Convenience of preparation. Keeping in view the above factors, the demand of this product is likely to increase manifold in the coming years.
Basis and Presumptions
• Number of hours: 8 hrs. per day
• Number of Working Days in a year: 300 days
• Time period for achieving full capacity utilization: 5 years
• Labour Wages : As per Wages Act of the State Government
• Interest on capital : 14% per investment annum
• Margin Money : 25% of the Working Capital
• Pay back period: 7 years of the Project
Implementation Schedule
• Building construction 3 Months
• Preparation of Project 1 Month report and SSI Registration
• Financial assistance 3 Months
• Arrangement of power 1 Month
• Acquisition of Machinery 1 Month
• Installation of Machinery 15 Days
• Appointment of Staff 1 Month and Labour
• Trial production and 2 Weeks shooting problems
• Commercial production 1 Week after trial production
• Total time to start 3 to 6 commercial production Months
Technical Aspects
Process of Manufacture
Noodles is the term being used to designate products made from blend of flours, the major component of which is tapioca flour and maida. A noodle is manufactured in different sizes, hollow as well as solid, for different cooking methods. Some are made for cooking and others are for frying. The noodles proposed in this Profile are for frying.
Typical Blending for 16 Kg. of Product
• Maida : 8 Kgs.
• Starch : 7 Kgs.
• Sodium bicarbonate : 850 gms.
• Salt : 150 gms.
• Edible colour : Q.S.
Process in Detail
• Dry Mixing- The average moisture content of dry mixes is 10-11%. The three ingredients maida, starch and soda bicarbonate are blended in a vertical mixer alongwith edible colour.
• Dough Formation- Satisfactory dough can be made from the above blend only by using boiled water, when a part of the starch is gelatinized. The ingredients are mixed in dough mixer for about 12 to 15 minutes.
• Extrusion- The kneaded dough is then transferred to noodles making machine where extruded material of desired shape and length is obtained by using an appropriate type of die and suitably adjusting the distance between the dye surface and cutting blade. The moisture content of the product at this stage is about 33%.
• Pre-drying- The cut noodles goods from the cutting machine fall on wooden trays. The product undergoes surface drying and becomes sufficiently hard enough to be handled without sticking or being crushed. The moisture content of the pre-dried product is about 29.5%.
• Drying-The pre-dried product is finally semidried. The moisture content of the product will be 17%. Drying is done by exposure to indirect sunrays or placing in shade. The noodles dried as above do not have a satisfactory cooking quality and undergo a heavy loss on cooking. This can be reduced considerably by giving heat treatment to the product. This is optioned as this gives a brown colour to the product which may not be appealing to some of the customers.
Recent development in the manufacture of noodles is that the product is exposed to steam. The steamed product has three advantages:
• longer shelf-life
• harder grain
• better eating quality than unsteamed product.
Steaming is done by exposing the product in thin layer to steam for about 15 minutes. The steamed and subsequently dried product has a moisture content of about 10%. The steaming is done before the product is semi-dried.
Quality Control and Standards
The product must meet PFA specifications. However, BIS specification for Noodles is IS: 1485:1976.
Production Capacity
|
Qty. per annum |
Value per annum (In Rs.) |
Fresh Noodles |
150 MT |
39,37,500 |
Motive Power |
|
30 HP |
Pollution Control
It is not required as the product is not causing any air, water and sound pollution. However, entrepreneurs should obtain NOC from concerned State Pollution Control Board.
Energy Conservation
Proper insulation is to be made to reduce the heat loss during drying and steaming processes.
Financial Aspects
Fixed capital
Land and Building |
Amount (In Rs.) |
Land 1000 Sq. Mts. @ Rs. 100 |
1,00,000 |
Cost of construction of shed 225 sq mtr. @ Rs. 3000 Sq. Mtr. |
6,75,000 |
Total |
7,75,000 |
Machinery and Equipment
Sl. No. |
Description |
Amount (In Rs.) |
1. |
Vertical type powder mixer 500 kgs. cap with motor complete |
22,000 |
2. |
Dough mixer blade type 75 kgs. cap |
44,000 |
3. |
Noodles making power operated machine with different size die-heads |
2,20,000 |
4. |
Wooden trays 1000 pcs. size 2'×3' |
16,500 |
5. |
Plastic Buckets 4 each of 20 liters cap. |
1,000 |
6. |
Aluminium/Galvanised iron water tape pipe line fittings |
34,500 |
7. |
Water boiler-fuel heated 75 litres cap. |
11,000 |
8. |
Installation of machinery and equipment |
3,000 |
9. |
Office furniture etc. |
22,000 |
Total |
3,74,000 |
|
Pre-operative Expenses |
Amount (In Rs.) |
Legal expenses, start-up expenses, establishment cost, consultancy fee, estimate fee, interest and trial runs, etc. |
35,000 |
Total Fixed Capital |
Amount (In Rs.) |
. Land and Building |
7,75,000 |
Machinery and Equipment |
3,74,000 |
Pre-operative Expenses |
35,000 |
Total |
11,84,000 |
Machinery Utilisation
The bottleneck operation in the manufacturing process is extrusion. The unit will utilize 75% of the installed capacity.
Financial Analysis
Cost of Production (per year) |
Amount (In Rs.) |
Total recurring cost per year |
26,21,700 |
Depreciation on building @ 5% |
33,750 |
Depreciation on M/C @ 10% |
35,200 |
Depreciation on office equipment @ 20% |
4,400 |
Interest on total capital investment @ 14% |
2,57,520 |
Total |
29,52,570 |
Turn Over (per year)
Item |
Qty. |
Rate (In Rs.) |
Amount (In Rs.) |
|
Fresh Noodles in 200 gms. |
7.50 Packets lakh pkts |
5.25 |
39,37,500 |
|
Net Profit (per year)
= Sales – Cost of production
= 39,37,500 – 29,52,570
= 9,84,930
Net Profit Ratio = Net profit per year × 100 Turn Over per year
= 9,84,830 × 100 39,37,500
= 25.01%
Rate of Return = Net profit per year × 100 Total investment
= 9,84,930 × 100 18,39,425
= 53.5%
Break-even Point
Fixed Cost |
Amount (In Rs.) |
Depreciation on Building @ 5% |
33,750 |
Depreciation on Machinery |
35,200 |
Depreciation on Office Equipments |
4,400 |
Interest on Total Investment |
2,57,520 |
Insurance |
18,000 |
40% of salary and wages |
1,46,280 |
40% of other contingent expenses |
1,10,400 |
Total |
6,05,550 |
B.E.P. = FC × 100 FC + P
= 6,05,550 × 100 6,05,550 + 9,84,930
= 38.07%
Addresses of Machinery and Equipment Suppliers
• M/s. Mona Machinery Mfg. Co. Chandralok, 111 SD Road, Secunderabad.
• M/s. Khan Engg. Works 5-5-274 Namally, Near Gandhi Bhavan, Patel Nagar, Hyderabad.
• M/s. Shanti Turning Works 4-1-590/12, Troop Bazar, Hyderabad-500001.
• M/s. Mahalaxmi Engg. Works Craftman, Gylid, Mallepally, Hyderabad.
• M/s. Debdoot India 67-B, Biddan St., Kolkata - 700006.
Source
Ministry of Micro, Small & Medium Enterprises
Government of India
Nirman Bhavan, New Delhi - 110011
Contact for more information
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
