RAJASTHAN AGRICULTURAL COMPETITIVENESS PROJECT

Detailed Project Report on Chikki Making Unit

Prepared by:

AGRI BUSINESS PROMOTION FACILITY

Contents

List of Figures 2 List of Tables 3 Chapter 1: Scenario in 4 Chapter 2: State of Rajasthan: Groundnut Production 8 Chapter 3: Manufacturing Process and Process Flow 12 Chapter 4: Technology Option 17

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List of Figures

Figure 1 State wise Production of India ...... 5 Figure 2 Total Volume Qty (‘000 MT) ...... 6 Figure 3 Average price per kg in rupees ...... 7 Figure 4 Groundnut Production in RACP district area of Rajasthan ...... 8 Figure 5 Process Flow ...... 13 Figure 6 Working principle of Flow Wrap Packing Machine ...... 15

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List of Tables

Table 1 Groundnut producing States in India ...... 5 Table 2 Season-wise Area, Production and Productivity of Groundnut in India ...... 5 Table 3 District wise Groundnut Production 2015-16 ...... 8 Table 4 Area, production and productivity of Ground in Rajasthan over 2006-07 to 2715-16 ...... 9 Table 5 Groundnut production in RACP clusters as per CCP ...... 10

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Chapter 1: Scenario in India

1.1. Introduction to Groundnut Groundnut is an oilseed derived from the fruit of the groundnut plant. They have a rich nutty flavour, sweet taste, crunchy texture and over and above a relatively longer shelf life. It is referred to as a nut in general terms but it is not a nut exactly in actual terms, it is a seed rather and is also known by the name of peanut. Groundnut is considered to be the one of the most important oilseed crops in the world. It is grown in over 100 countries of the world and plays a crucial role in the world economy. The seeds are a good source of edible oil and proteins present in the groundnut oil cake. The percentage of oil and protein are extracted from the seed are approximately 55% and 28% respectively. The oil cake meal left after the extraction of the oil is used as an animal fodder and fertilizer. The peanut oil is primarily needed as a cooking agent but it also has some industrial uses like in paint, varnish, lubricating oil, soap, furniture polish etc. The peanut seeds are also consumed directly in roasted form, as butter, in and etc. It is also a rich source of thiamine, riboflavin, nicotinic acid, vitamin E and all B vitamins except B12. It also contains minerals, phosphorus, calcium and iron. Biological value of groundnut protein is highest among vegetable proteins and it is a very rich food (one gram supplies 5.8 food calories). India and China are also responsible for the highest consumption of groundnut. Other major ground nut consuming countries are Nigeria, United States and the European Union. Except European Union, all the countries lie in the list of major groundnut producing countries as well. European Union countries are the largest consumer of groundnuts where the crop is not produced. The major demand i.e. around 75% comes from the food sector and the rest from other sectors. The trade done in the world in the context of groundnuts is estimated to about 1 lakh tons per year. The leading groundnut exporting countries are; Argentina, Senegal, Nigeria, India, United States, China, Vietnam, South Africa and Gambia. The countries mentioned above contribute to about 90% of the world exports. Argentina makes the largest groundnut exporter to the world. The major countries that satisfy their domestic consumption demand by importing groundnuts are; Belgium, France, Germany, Ireland, Italy, Netherlands, United States, United Kingdom, Sweden, Indonesia, Canada, Malaysia, Singapore, Philippines, Japan.

The major states in India that are indulged in the production of this crop are , , , Karnataka, , Madhya Pradesh, Orissa and Rajasthan. The country has exported 504019.2 MT of groundnuts to the world for the worth of Rs. 3386.3 crores/ 524.82 USD Millions during the year 2017-18. The major importing countries from India are Indonesia, Malaysia, Philippines, Vietnam, and Thailand. Apart from raw edible , India is also in a position to supply Blanched Peanuts, Roasted Salted Peanuts and Dry Roasted Peanuts and a variety of peanut based products like chikki. 1.2. Production Trends of Groundnut Andhra Pradesh, Gujarat, Rajasthan and Tamil Nadu account for 80 percent of the production of groundnut with about 73 percent of the total area in 2013-141. The production is led by the State of Gujarat with a major share of about 51%, followed by Andhra Pradesh with about 12.69%, and then Tamil Nadu and Rajasthan with over 9% each. The detailed scenario about the groundnut production for all the states has been presented in the table and figure below:

1 http://cacp.dacnet.nic.in/ViewReports.aspx?Input=2&PageId=39&KeyId=547

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Table 1 Groundnut producing States in India

Production Rank States Share % (Thousand Tonnes) 1 Gujrat 4920 50.77 2 Andhra Pradesh 1230 12.69 3 Tamil Nadu 960 9.91 4 Rajasthan 910 9.39 5 Karnataka 660 6.81

Figure 1 State wise Production of India

The top three districts in terms of the highest productivity are Nellore, Guntur and Warangal in Andhra Pradesh; Surendranagar, Porbandar and Junagadh in Gujarat; Hanumangarh, Bikaner and Churu in Rajasthan and Thiruvarur, Thiruvallur and Kancheepuram in Tamil Nadu. The efficiency gaps in terms of productivity levels within states vary in the range from 19 percent in Gujarat to 77 percent in Andhra Pradesh.2

Table 2 Season-wise Area, Production and Productivity of Groundnut in India

Area (In ' 000 Hectare) Production (In ' 000 Tonne) Productivity (In Kg./Hectare) Year Kharif Rabi Total Kharif Rabi Total Kharif Rabi Total 2006-07 4780 835 5615 3294 1569 4864 689 1880 866 2007-08 5312 980 6292 7362 1820 9183 1386 1857 1459 2008-09 5286 879 6165 5617 1551 7168 1063 1764 1163 2009-10 4616 862 5478 3852 1576 5429 835 991 1830 2010-11 4977 879 5856 6644 1622 8266 1335 1846 1411 2011-12 4316 948 5264 5127 1837 6964 1188 1938 1323 2012-13 3931 790 4721 3187 1507 4694 811 1908 994 2013-14 4645 860 5505 8058 1656 9714 1735 1927 1765 2014-15 4014 755 4769 5931 1471 7402 1478 1948 1552 2015-16 3878 759 4597 5368 1366 6733 1399 1801 1465 The analysis of ground nut area, production and productivity suggests that, there is a slight decrease over area of production. However, production has increased from 4869 thousand

2 http://cacp.dacnet.nic.in/ViewReports.aspx?Input=2&PageId=39&KeyId=547

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MT to 6733 thousand MT due to increase in productivity from 866 kg/ha to 1465 kg/ha. However, the productivity figures have also been stagnant. 1.3. Demand for Groundnut The most common ways of using peanuts in India is in the form of oil and as roasted snack or as main ingredient in chikkis. Since they have all the properties of nuts like , nuts, etc., these are also often included in the family of nuts. The seeds in fact have several attached health benefits as they are rich in energy, loaded with vitamins, minerals, anti- oxidants which help cholesterol, help in body growth, help fight stomach cancer, help fight against heart diseases, nerves diseases, alzheimer’s disease, and infections, help reduce the chances of stroke, protect skin and hair and much more.

Indian Exports Major Export Destinations (2015-16) for groundnut were Indonesia, Malaysia, Thailand, Philippines and . The total quantity of Indian groundnut exports for the period January 2014 to November 2016 amounts to 1903319682 MT and the total value is $ 1705568361. The year 2014 was initially stable in terms of quantity of Indian groundnut export but drastically increased during the period of January 2016. The details of Indian exports of groundnut in terms of quantity and value for the period January 2014 to November 2016 have been given in the figure below: 3

160000 140000 120000 100000 80000 60000 40000 20000

0

Jul-15 Jul-14 Jul-16

Jan-14 Jan-15 Jan-16

Sep-15 Sep-14 Sep-16

Nov-14 Nov-15 Nov-16

Mar-14 Mar-15 Mar-16

May-14 May-15 May-16 Month

Figure 2 Total Volume Qty (‘000 MT)

3 https://www.zauba.com/exportanalysis-groundnut-report.html

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Groundnut Average Export Price: The average price of groundnut throughout the period of January 2014 to November 2016 was $0.9. In the year 2014 the average price was stable considering minor ups and downs. In the month of January 2015 there was an extreme fall in the average price and again from May 2015 the average price was followed by minor ups and downs. The details of Groundnut Average Prices for the period January 2014 to November 2016 have been given in the figure below. The price in Jan 2015 dipped due to bumper production.

100 90 80 70 60 50 40 30 20 10 0

Figure 3 Average price per kg in rupees

Indian Imports Imports by India are negligible as the production level is quite sufficient for the domestic demand level in the country. Market Influencing Factors  Weather conditions in major groundnut producing regions.  Monsoon status in the country.  Price fluctuations of the other competitive edible oils.  International price movements.  High consumption in festive seasons and celebrations. Major trading centres of groundnut The major trading centres of groundnut are:  Rajkot (Gujarat)  Ahmedabad (Gujarat)  Gondal (Gujarat)  Junagarh (Gujarat)  Mumbai (Maharashtra)  Indore (Madhya Pradesh)  Delhi  Adoni (Andhra Pradesh)  Bikaner  Jaipur Also, groundnut is traded in Indian commodity exchanges namely, National Commodity & Derivatives Exchange ltd, National Multi Commodity Exchange of India ltd, Multi Commodity Exchange of India ltd, The Rajkot Seeds oil & Bullion Merchants` Association Ltd and The Bombay Commodity Exchange ltd.

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Chapter 2: State of Rajasthan: Groundnut Production

2.1. Scenario in Rajasthan

Rajasthan is one of the leading states for Groundnut production in India and by rank it is 4th state in highest production in India.

Groundnut Production in RACP District area of Rajasthan

1,000,000 907,383 900,000 796,458 800,000 700,000 600,000 496,216 500,000 RACP Districts Production (in MT) 400,000 Rajasthan State Production (in MT)

Production in MTin Production 300,000 200,000 82,236 100,000 - 2013-14 2014-15 RACP Districts Production (in MT) 496,216 82,236 Rajasthan State Production (in MT) 907,383 796,458

Figure 4 Groundnut Production in RACP district area of Rajasthan

Table 3 District wise Groundnut Production 2015-16

Sr. No. District in the Catchment Area Production in MT Rank of District in RACP

1 Bikaner 402451 1 2 Jaipur 57762 2 3 Jaisalmer 31233 3 4 Nagaur 21081 4 5 Chittorgarh 11016 5 6 Tonk 9855 6 7 S. Madhopur 3926 7 8 Ajmer 3440 8 9 Ganganagar 3011 9 10 Jhalawar 2236 10 11 Alwar 1826 11 12 Baran 1185 12 13 Bundi 1045 13 14 Pratapgarh 749 14 15 Kota 367 15 16 Banswara 341 16 17 Dholpur 87 17

Total Production in RACP district Area 551,611

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Ground nut has been selected as a value chain crop in Kheruwala and Phoolasar clusters in Rajasthan. Table 4 Area, production and productivity of Ground nut in Rajasthan over 2006-07 to 2715-16

Average of 10 % increase Details 2006-07 2015-16 Years decrease

Area 306037 516850 387853 69

Production 399509 1048718 684356.8 163

Productivity 1305 2029 1723.21 55 There has been an increase in 69% of are over 2006-07 in 2015-16. The production has grown by 163% over the corresponding period and productivity has grown by 55%.

Area and production trend of ground nut over ten years (2006-07 to 2015-16) Area and production of ground nut in Rajasthan Area in ha, Production in MT 1200000 1000000 800000 600000 400000 200000 0 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Area Production

Productivity trend in Rajasthan for ground nut over 2006-07 to 2015-16

Ground nut Productivity trend 2006-07 to 2015-16 in Rajasthan kg/ha 2500

2000

1500

1000

500

0 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

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RACP clusters scenario Table 5 Groundnut production in RACP clusters as per CCP

Marketable surplus (MT) Cluster Area (Ha) Production (MT) @ 90%

Phoolasar 4,875 13,162 11,846

Kheruwala 2,760 5,390 4,851

Total 7,635 18,552 16,697

2.2. Value Chain Analysis

The present value chain for groundnut is highly complex in nature because of multiple levels of value addition and multiple stake holders present in the value chain. The value chain has essentially four channels out of which Channel 1 & 2 are for human consumption and end users are Households and institutions. Channel 3 is the by product from secondary processing (oil industry) and end users are farmers/ animal breeders as animal feed. The 4th channel is the by-product chain of the Primary processing (De-shelling) industry whose end users are brick kilns, husk power plants and steam generators. For an illustrative case of Ground nut oil, the farmers’ share in consumer rupee is 25%. Village trader generally works on a collection charges of Rs 20-30 per quintal. APMC trader has a gross margin of 1% over consumer rupee in case of oil. Primary processor enjoys 16%, Secondary processor 43%, Distributor-4% and Retailer -9% over consumer rupee. Farmers’ role in the value chain is Production, post-harvest handling, doing sorting, grading and doing storage if needed. Village traders aggregate the produce from few farmers and sell them in nearby APMC. Their main role is bulking. The role of APMC traders is to facilitate auction of the produce at the mandi premises and he charges a commission of around 2-3% as aadat/ loading and weighing charges from the farmer. The role of primary processor in ground nut industry is to de-shell the product. Generally, long distance transport is done for de-shelled ground nut to reduce cost of transportation. Secondary processing is most widespread in case of ground nut value chain. The secondary processed products of ground nut are: Roasted and salted nuts, nuts used in namkeens, nut chikki, nut laddu, nuts used in sweets/ice-creams, ground nut oil and de-oiled cake. All these products find their way into the consumers’ house through a long channel of state level agencies, distributors, wholesalers and retailers.

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Present Value Chain: Groundnut

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Chapter 3: Manufacturing Process and Process Flow

3.1. Introduction to Chikki

Chikki is a sweet product prepared by mixing various types of nuts and other ingredients either with or . These ingredients are mixed with thick syrup made of jiggery or sugar. The mixture is cooled and then smaller pieces are made and packed. There are several different varieties of chikki in addition to the most common groundnut chikki. Each variety of chikki is named depending upon the ingredients used, which include puffed or roasted Bengal gram, , puffed rice, beaten rice, or desiccated . Chikki are also made from dry fruits (, almonds, , etc.).

In regions of , especially and , this sweet is called Layiya Patti. In Sindh and Sindhi regions of India, it is called Layee or Lai and in , it is known as gur badam. Similar dishes are also very popular in Brazil, where it is known as pé-de- moleque, and in Paraguay, where it is called Ka'í Ladrillo. Most popular chikkis are sourced from the Indian towns of Lonavala, Matheran, , , Karjat in Maharashtra and Bhuj in Gujarat.

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3.2. Process Flow of Peanut Chikki

The diagram below highlights the flow of operations for Peanut Chikki:

Figure 5 Process Flow

3.2.1. Receiving of Decorticated, Cleaned and Sorted Peanut on Shop floor: The first step in processing for peanut chikki is receiving decorticated seeds which are also finely clean from any foreign material like shell pieces, dirt, stones, ferrous impurities, light impurities like strings, etc. Thus the procurement of fine quality peanuts is most critical. In this context, some units may also prefer to procure finely cleaned and graded blanched peanuts to ensure quality material and also reducing the need for de-skinning the kernels at shop floor. Of course, jaggery and other ingredients too need to be procured as per envisaged quality standards.

3.2.2. Peanut Roaster Machine: The bonding force between the red skin and kernel of mature peanut is related to the water content of peanut. When the water reaches a certain value, the binding force would reduce to a minimum. Then, the red skin can be peeled from the kernel by some easy abrasion force. Groundnut roasters are typically gas/wood fired revolving ovens (drum-shaped). The rotation of the oven continuously stirs the peanuts to produce an even roast. Roasting temperatures and times vary with the condition of the peanut batch and the desired end characteristics. Roasting imparts the typical flavor and nuttiness many people associate with peanuts. Roasting also dries the peanuts further and causes them to turn brown as peanut oil stains the peanut cell walls. The roasted peanuts are then transferred to cooling trays to reduce the temperature of peanuts. Alternatively cooling conveyors are used where air is blown over the peanuts immediately following roasting. Cooling is also necessary to stop the roasting process and maintain a uniform quality. The roasting process and then immediate cooling makes the outer skin a lot looser and

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easier to remove. The machine can also be upgraded with auto temperature control system. Feeding and transferring to next processing machine is done either manually or with use of belt conveyors or bucket elevators.

3.2.3. Peanut skin removing (cum splitting) machine: Dry roasted peanuts are cooled and then moved to Peanut Skin Removing machine. The de-skinning process removes the skin of the peanut as well as dust or any other impurities adhering to the skin. As the roasted peanuts fed in the hopper of the peeling chamber, the rubbing rolls inside the machine, using abrasion, peel the peanuts. Due to different speed of rollers, the frictional force peels the skin off and loosening the bond between kernels, while an in-built vibrating screen enables splitting the kernel in two parts. The machine consists of the dust collector which aspirates the red coat of peanuts in a separate dust collecting bag. Feeding and transferring to next processing machine is done either manually or with use of belt conveyors or bucket elevators.

3.2.4. Jaggery Cooking and Mixing Machine: Simultaneously, to above process, grated jaggery is heated in big pan until the temperature reaches 1200 C. Cold water is added to the melted jaggery and further it is cooked for 2-4 minutes. It is important that Jaggery powder and water used are free from any foreign impurities, else it is important to filter the syrup at this point with help syrup filtration unit (which will have to be additionally installed otherwise). Then liquid glucose is added which is used to thicken the syrup. Some entrepreneurs may also add sugar powder (often to increase the sweetness, or to reduce cost or even so to use it as class 1 preservative) in the syrup. Some entrepreneurs also often add cardamom powder for flavour. Thereafter, pre-weighed roasted and de-husked peanuts were added and mixed thoroughly till nuts get coated with jaggery syrup. The machine has rotating agitator assembly which allows uniform mixing of the ingredients. These machines often also have auto temperature control system to ensure cooking and heating at appropriate temperature. The machine also have easy pan tilting mechanism, which allows the thick peanut and jaggery mixture to SS crates used for transferring to sheeting and cutting unit. The machine typically gas fired mechanism for cooking.

3.2.5. Continuous Chikki Sheeting & Cutting Machine: Cooked mass (mixture of peanut and jaggery paste), in controlled rate, need to be spread on conveyor bed and rolled/sheeted for proper sheet thickness. Rollers on the conveyor bed are used for this purpose. Horizontal rotary and vertical cutters were used for the selected width and length of the chikki bars. The continuous process requires

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very less power and man hour consumption. Therefore, the system turns out to be very beneficial in comparison to traditional methods. A suitable mechanism is integrated for the above spreading, rolling, sheeting, cutting horizontally and vertically. Below concept diagrams (plan and elevation) give more insight on the working principle of machine.

The processed chikki bars will then be cooled (for about half hour) to room temperature and then shall be ready for packaging. To transfer the chikki pieces to packing machine, a belt conveyor may be attached to the Sheeting and cutting machine extended up to the in-feed conveyor of packing machine.

3.2.6. Chikki (Flow Wrapping) Packing Machine: Also commonly known as the HFFS Machine (Horizontal-Form-Fill-Seal Machine), this machine has an in-feed conveyor, a film feed assembly (back-stand), a film forming area (former), bottom seal (fin-seal), a cutting head and a discharge area. Chikki bars created by the above processing equipment are placed on the in-feed conveyor of the flow wrapper machine. This can be done by hand feeding or by using an automated feeding solution (conveyor). As the in-feed conveyor delivers chikki bars to the forming area, film is drawn from the film feed assembly into the forming area, where a film tube is formed around the bar and a fin-seal is created. The film tube with the chikki bars are then delivered to the cutting head. The cutting head creates the end seals while it cuts apart adjoining wrapped chikki bars into individual packages, and delivers the packages to the discharge area. From the discharge area, the packages can be cartoned at a packing station. Below concept diagram gives more insight on the working principle of the machine.

Figure 6 Working principle of Flow Wrap Packing Machine

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3.3. Upgrading Options4 3.3.1. Adoption of material handling equipment and automation: Instead of manual feeding of raw material or partly processed material between machines and implementing entrepreneur may opt for Centralized Control System or even PLC based operations, along with use of belt conveyors and other suitable material handling equipment and cooling conveyor, thereby reducing dependence on manual interventions. 3.3.2. Higher Capacity of Production: With good demand to cater, entrepreneur may opt for higher production capacity, thereby also benefitting from cost reduction due to economies of scale. 3.3.3. In-house Quality Control and Testing facility: Modern plants may also adopt in-house testing of chikki and raw materials on several parameters such as Brix, acidity, moisture, nutrition analysis, texture test etc. This will enable entrepreneur to not only have quality control checks but also ensure development of most consistent quality finished products. 3.3.4. Development and processing of diverse mix of products: The chikki market has been growing rapidly with increase in demand at rural level as well for branded products in urban markets. Winter season and festivals are the key seasons for the industry. A diverse mix of products like Chana Chikki, Murmura Chikki, Dry Fruit Chikki, Rose Chikki as well as laddus (Jaggery and ingredient nut) will enable entrepreneur to penetrate deeper into chikki and sweets market instead of marketing peanut chikki alone. 3.4. Micro/mini Scale Model Option Entrepreneurs, with low capital investment, can also adopt a mini model of the processing, wherein he shall purchase already cleaned and de-skinned (dry blanced peanuts) and other ingredients from the market. For roasting (to attain crunchiness in peanuts) a gas and cooking system with large kadhai may be used. One more kadhai will be required for preparation of jaggery syrup. Other equipments that will be required will be large spoons for mixing, stainless steel trays, big size chikki roller, SS working tables, SS strainer for syrup filtration, cutting knives, weighing machine and pouch sealing machine. Such set-up, at small capacity size, may also be set-up with a capital of 1-3 lakh only (excluding civil works costs). However, such unit may require deploying relatively bigger labour force for handling operations. 3.5. Important note on safety It is important that labour on shop floor is provided with safety gear like disposable gloves and head cap. All food contact surfaces of the machines should be cleaned properly and a schedule for same should be prepared and adhered to. Food Safety, Men and Material Safety should be properly addressed as per the guidelines of FSSAI. RO should be installed for clean water for processing.

4 Upgrading options may be adopted by entrepreneur on additional cost. In this context, it is important that entrepreneur makes a proper analysis of cost benefit analysis to ensure benefit from such investment.

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Chapter 4: Technology Option

We propose two technology options i.e. Low end and High end for entrepreneurs interested in Chikki Making. The high end technology option would require higher capital investment as compared to the low end technology option. The high end option is relatively advanced and higher in automation Chikki Making line which operates with minimal human interventions. On the other hand, the low end technology option is a semi-automatic line and requires less capital as compared to high end line. Low End Technology – Semi Automatic Line Business Assumption:

Table: Assumptions

1 Working Hours per day 8 hours 2 Plant Capacity /Day 0.60 TPD 3 No. of Working Days in a year 300 4 Power Requirement 30 KVA 5 Main Products & By-Products Peanut Chikki 6 Inflation assumed annually 5% annually 7 Debtors 15 Days of Sales 8 Stock of Finished Goods 1 Month of Production 9 Stock of Raw Material 1 Month’s Consumption 10 Capacity Utilization 50% in Yr I, increasing by 5% thereon each year

Project Cost The total cost of the project is estimated to be Rs. 28.50 Lakhs, out of which civil works cost constitutes Rs 6 Lakhs, plant and machinery (including utilities) constitutes Rs. 19 Lakhs. The detailed description of each component of project cost is depicted in the tables below.

Table: Project Cost

Sr. No. Particulars Amt in(Rs. Lakh) 1 Land - 2 Civil Works 6.00 3 Plant & Machinery 19.00 4 Misc Fixed Assets - 5 Preliminary & Pre operative 0.50 6 Working Capital Margin 3.00 Total 28.50 Note: Land is assumed to be leased for the project.

Proposed Means of Finance The promoter’s equity in the project is Rs. 14.25 Lakhs which is 50% per cent of the total project cost. The term loan considered for the project is estimated at Rs. 14.25 Lakhs which is 50 per cent of the total project cost.

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Table: Means of Finance Summary

Sr. No. Source Amount (in Rs. Lakh) 1 Bank Term Loan 14.25 2 Promoter's Capital 14.25 3 RACP Grant - Total 28.50 Note: We have not considered grant which (if availed by project) may have an impact on the overall profitability of the project in a positive way.

Civil Work The total cost of civil work has been estimated to be Rs 6 lakhs.

Table: Civil Cost Summary

Particulars Area (Sq ft) Rate/Sq ft Rs. (in Lakh) Factory Constructions 750 800 6.00 Total 6.00

Plant and Machinery (including Utilities) The total cost of plant and machinery has been arrived on the basis of quotation received from various suppliers of equipment and machinery. The total cost of Main P&M is estimated at Rs. 18.38 Lakhs (including GST). The Cost of utilities is estimated to be around Rs. 0.61 Lakh (including GST). Hence, the Total Cost of P&M is estimated to be Rs. 19 Lakh. The following table captures the distribution of P&M and utilities.

Table: Main Plant and Machinery

Total Cost (in S. No. Machine Unit Cost Rs. Lakh) 1 Groundnut Roaster Machine 1 2.25 2.25 2 Skin Remover Machine 1 1.15 1.15 3 Syrup making vessel 2 0.05 0.10 Chikki Cooking cum Mixing 4 Pans 3 0.08 0.24 5 Gas station and pipeline 1 0.50 0.50 6 Working Tables 4 0.18 0.72 7 SS Roller Pins 6 0.02 0.12 8 SS Trays 10 0.02 0.20 9 Sheeting and Cutting Machine 1 8.50 8.50 10 Plant Electrification 1 Set 0.90 1.80 GST 2.80 Total (Main P&M) 18.38

Table: Utilities

Total Cost S. No. Utilities Unit Cost (in Rs. Lakh) 1 RO (Small capacity) 1 0.18 0.18 2 Weighing Machines 2 0.12 0.24 3 Water Storage Tank 1 0.10 0.10 GST 0.09

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Total (Main Utilities) 0.61

Product Schedule The table below is the Product Schedule for the Low end technology line:

Table: Product Schedule Particulars Y1 Y2 Y3 Y4 Y5

Chikki Making Capacity (MT/Day) 0.6 0.6 0.6 0.6 0.6 Working Days in Year 300 300 300 300 300

Annual Requirement @ 100% CU of Inputs (MT) 180 180 180 180 180

Capacity Utilization 50.00% 55.00% 60.00% 65.00% 70.00%

Inputs (MT) Peanuts 39.6 43.56 47.52 51.48 55.44 Jaggery Powder 27 29.7 32.4 35.1 37.8 Sugar 13.5 14.85 16.2 17.55 18.9 Liquid Glucose 8.1 8.91 9.72 10.53 11.34 Total Input (in MT) 88.2 97.02 105.84 114.66 123.48

Output (MT) Peanut Chikki 79.38 87.318 95.256 103.194 111.132

Tonnes processed / day 0.6 0.6 0.6 0.6 0.6 No. of days of operation 150 165 180 195 210

Purchase Schedule The table below is the Purchase Schedule for the Low end technology line:

Table: Purchase Schedule Particulars Y1 Y2 Y3 Y4 Y5

Peanut (MT) 42.6 44.56 47.52 51.48 56.44 Purchase Price (in Rs./MT) 55,000.00 57,750.00 60,638.00 63,670.00 66,854.00 Purchases of Peanut 23.43 25.73 28.82 32.78 37.73

Jaggery Powder (MT) 29 29.7 33.4 35.1 37.8 Purchase Price (in Rs./MT) 48,000.00 50,400.00 52,920.00 55,566.00 58,344.00 Purchases of Jaggery Powder 13.92 14.97 17.68 19.50 22.05

Sugar (MT) 14.5 14.85 16.2 17.55 19.9 Purchase Price (in Rs./MT) 35,000.00 36,750.00 38,588.00 40,517.00 42,543.00 Purchases of Sugar 5.08 5.46 6.25 7.11 8.47

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Liquid Glucose (MT) 8 8 9 10 10 Purchase Price (in Rs./MT) 30,000.00 31,500.00 33,075.00 34,729.00 36,465.00 Purchases of Liquid Glucose 2.40 2.52 2.98 3.47 3.65

Total Purchases 44.83 48.68 55.72 62.86 71.90 *Figures in Rupees Lakh

Sales Schedule The table below is the Sales Schedule for the Low end technology line:

Table: Sales Schedule Particulars Y1 Y2 Y3 Y4 Y5

Chikki (MT) 72.38 87.318 94.256 102.194 111.132 Sale Price (Rs. Per MT) 125,000.00 131,250.00 137,813.00 144,704.00 151,939.00 Chikki Sales 90.48 114.60 129.90 147.88 168.85

Total Sales 90.48 114.60 129.90 147.88 168.85 *Figures in Rupees Lakh

Income Statement Below is the income statement of the Low end technology line: Table: Income Statement Particulars Y1 Y2 Y3 Y4 Y5 Total Sales 90.48 114.60 129.90 147.88 168.85

Less:- Opening Stock of F.G. - 8.75 9.19 11.03 13.02 Add:-Closing Stock of F. G. 8.75 9.19 11.03 13.02 13.67

Cost of Finish Goods 99.23 115.04 131.73 149.88 169.50

Raw Material Purchased 44.83 48.68 55.72 62.86 71.90

Add:- Opening Stock of R.M - 3.26 4.00 4.73 4.97 Less:-Closing Stock of R.M. 3.26 4.00 4.73 4.97 6.31

Cost of Material Consumed 41.57 47.94 54.99 62.63 70.56

Total Variable Exp 19.93 21.88 24.73 26.62 28.53

Total Fixed Exp 19.09 20.05 21.32 22.60 23.90

Amortization of Exp 0.10 0.10 0.10 0.10 0.10

Profit Before Int & Dep 18.54 25.08 30.59 37.93 46.42

Intt on Term Loan 1.27 0.99 0.71 0.42 0.13 Intt on W. Capital Loan 0.90 1.02 1.18 1.40 1.60 Depreciation 3.45 2.96 2.54 2.19 1.88 Earning Before Profit 12.92 20.11 26.16 33.93 42.81

Tax 4.00 6.00 8.00 10.00 13.00

Chikki Unit 20

Net Profit 8.92 14.11 18.16 23.93 29.81 *Figures in Rupees Lakh

Financial Indicators Below are the financial indicators for the Low end technology line: Table: Financial Indicators Sl. No Particulars Estimates 1 IRR 41 % 2 BEP (Average) 51 % 3 ROI 31 % 4 Net present value Rs. 50.50 Lakh 5 Avg. DSCR 6.56 6 Project Payback Period 2 Yr 4 Months

Chikki Unit 21

High End Technology – Semi Automatic Line (Advanced) Business Assumption:

Table: Assumptions

1 Working Hours per day 8 hours 2 Plant Capacity /Day 1 TPD 3 No. of Working Days in a year 300 4 Power Requirement 65 KVA 5 Main Products & By-Products Peanut Chikki 6 Inflation assumed annually 5% annually 7 Debtors 15 Days of Sales 8 Stock of Finished Goods 1 Month of Production 9 Stock of Raw Material 1 Month’s Consumption 10 Capacity Utilization 50% in Yr I, increasing by 5% thereon each year

Project Cost The total cost of the project is estimated to be Rs. 56.45 Lakhs, out of which civil works cost constitutes Rs 14 Lakhs, plant and machinery (including utilities) constitutes Rs. 36.19 Lakhs, and miscellaneous fixed assets of Rs. 0.76 Lakhs. The detailed description of each component of project cost is depicted in the tables below.

Table: Project Cost Sr. No. Particulars Amt (Rs. Lakh) 1 Land - 2 Civil Works 14.00 3 Plant & Machinery 36.19 4 Misc Fixed Assets 0.76 5 Preliminary & Pre operative expenses 0.50 6 Working Capital Margin 5.00 Total 56.45 Note: Land is assumed to be leased for the project. Proposed Means of Finance The promoter’s equity in the project is Rs. 28.23 Lakhs which is 50% per cent of the total project cost. The term loan considered for the project is estimated at Rs. 28.23 Lakhs which is 50 per cent of the total project cost.

Table: Means of Finance Summary Sr. No. Source Amount (Rs. Lakh) 1 Bank Term Loan 28.23 2 Promoter's Capital 28.23 3 RACP Grant - Total 56.45 Note: We have not considered grant which (if availed by project) may have an impact on the overall profitability of the project in a positive way.

Civil Work The total cost of civil work has been estimated to be Rs 14 lakhs, which includes technical civil work of Rs 12 Lakhs and non-technical civil work of Rs. 2 Lakhs. Cost of civil work comprises of the cost of process building, boundary chain link and minor civil works.

Chikki Unit 22

Table: Civil Cost Summary Particulars Area (Sq ft) Rate/Sq ft Rs. (in Lakh) Factory Constructions 1500 800 12.00 Boundary wall and minor civil works Lump sum 02.00 14.00

Misc. Fixed Assets The total cost of Fixed Assets has been estimated to be Rs 0.76 lakhs, which is illustrated as under:

Table: Misc Fixed Assets Summary Total Cost (in S. No. Fixed Assets Unit Cost Rs. Lakh) 1 Working Tables (SS) 2 0.18 0.36 2 SS Trays 20 .02 0.40 0.76

Plant and Machinery (including Utilities) The total cost of plant and machinery has been arrived on the basis of quotation received from various suppliers of equipment and machinery. The total cost of Main P&M is estimated at Rs. 31.15 Lakhs (including GST). The Cost of utilities is estimated to be around Rs. 5.04 Lakh (including GST). Hence, the Total Cost of P&M is estimated to be Rs. 36.19 Lakh. The following table captures the distribution of P&M and utilities.

Table: Main Plant and Machinery S. No. Machine Unit Cost Total Cost 1 Groundnut Roaster Machine 1 2.25 2.25 2 Skin Remover Machine 1 1.15 1.15 3 Chikki Mixing Machine 1 10.20 10.20 Chikki Sheeting & Cutting 4 Machine 1 8.50 8.50 5 Automatic HFFS 1 2.50 2.50 6 Plant Electrification 1 Set 1.80 1.80 GST 4.75 Total (Main P&M) 31.15

Table: Utilities

S. No. Utilities Unit Cost Total Cost 1 Transformer, LT Line 1 3.75 3.75 2 RO (Small capacity) 1 0.18 0.18 3 Weighing Machines 2 0.12 0.24 4 Water Storage Tank 1 0.10 0.10 GST 0.77 Total (Main Utilities) 5.04

Product Schedule The table below is the Product Schedule for the High end technology line:

Table: Product Schedule

Particulars Y1 Y2 Y3 Y4 Y5

Chikki Unit 23

Chikki Making Capacity (MT/Day) 1 1 1 1 1 Working Days in Year 300 300 300 300 300

Annual Requirement @ 100% CU of Inputs (MT) 300 300 300 300 300

Capacity Utilization 50.00% 55.00% 60.00% 65.00% 70.00%

Inputs (MT) Peanuts 66 72.6 79.2 85.8 92.4 Jaggery Powder 45 49.5 54 58.5 63 Sugar 22.5 24.75 27 29.25 31.5 Liquid Glucose 13.5 14.85 16.2 17.55 18.9 Total Input (in MT) 147 161.7 176.4 191.1 205.8

Output (MT) Peanut Chikki 132.3 145.53 158.76 171.99 185.22

Tonnes processed / day 1 1 1 1 1 No. of days of operation 150 165 180 195 210

Purchase Schedule The table below is the Purchase Schedule for the High end technology line:

Table: Purchase Schedule Particulars Y1 Y2 Y3 Y4 Y5

Peanut (MT) 72 72.6 80.2 85.8 93.4 Purchase Price (in Rs./MT) 55,000.00 57,750.00 60,638.00 63,670.00 66,854.00 Purchases of Peanut 39.60 41.93 48.63 54.63 62.44

Jaggery Powder (MT) 49 49.5 55 58.5 63 Purchase Price (in Rs./MT) 48,000.00 50,400.00 52,920.00 55,566.00 58,344.00 Purchases of Jaggery Powder 23.52 24.95 29.11 32.51 36.76

Sugar (MT) 24.5 24.75 27 29.25 32.5 Purchase Price (in Rs./MT) 35,000.00 36,750.00 38,588.00 40,517.00 42,543.00 Purchases of Sugar 8.58 9.10 10.42 11.85 13.83

Liquid Glucose (MT) 13 14 15 16 17 Purchase Price (in Rs./MT) 30,000.00 31,500.00 33,075.00 34,729.00 36,465.00 Purchases of Liquid Glucose 3.90 4.41 4.96 5.56 6.20

Total Purchases 75.60 80.38 93.12 104.54 119.22 *Figures in Rupees Lakh

Sales Schedule The table below is the Sales Schedule for the High end technology line:

Table: Sales Schedule Particulars Y1 Y2 Y3 Y4 Y5

Chikki Unit 24

Chikki (MT) 121.3 144.53 157.76 170.99 184.22 Sale Price (in Rs. Per 125,000.0 131,250.0 137,813.0 144,704.0 151,939.0 MT) 0 0 0 0 0 Chikki Sales 151.63 189.70 217.41 247.43 279.90

Total Sales 151.63 189.70 217.41 247.43 279.90 *Figures in Rupees Lakh

Income Statement Below is the income statement of the High end technology line:

Table: Income Statement Particulars Y1 Y2 Y3 Y4 Y5

Sales 151.63 189.70 217.41 247.43 279.90

Total Sales 151.63 189.70 217.41 247.43 279.90

Less:- Opening Stock of F.G. - 13.75 15.75 17.92 20.26 Add:-Closing Stock of F. G. 13.75 15.75 17.92 20.26 22.79

Cost of Finish Goods 165.38 191.70 219.58 249.77 282.43

Raw Material Purchased 75.60 80.38 93.12 104.54 119.22

Add:- Opening Stock of R.M - 6.22 6.53 7.99 8.39 Less:-Closing Stock of R.M. 6.22 6.53 7.99 8.39 9.91

Cost of Material Consumed 69.38 80.07 91.66 104.14 117.71

Total Variable Expenses 28.25 32.00 34.65 38.33 42.03 Total Fixed Expenses 31.71 33.18 34.50 35.83 37.17 Amortization of Expenses 0.10 0.10 0.10 0.10 0.10 Profit Before Interest & Dep 35.94 46.34 58.67 71.38 85.43

Interest on Term Loan 2.52 1.95 1.39 0.82 0.26 Interest on W. Capital Loan 1.50 1.73 1.99 2.27 2.57 Depreciation 6.90 5.94 5.12 4.41 3.80

Earning Before Profit 25.02 36.72 50.17 63.88 78.80

Tax 8.00 11.00 16.00 20.00 24.00 Net Profit 17.02 25.72 34.17 43.88 54.80 *Figures in Rupees Lakh

Financial Indicators Below are the financial indicators for the High end technology line:

Table: Financial Indicators Sl. No Particulars Estimates 1 IRR 39 %

Chikki Unit 25

2 BEP (Average) 48 % 3 ROI 30 % 4 Net present value Rs. 90.55 Lakh 5 Avg. DSCR 6.20 6 Project Payback Period 2 Yr 5 Months

Chikki Unit 26

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