Project Profile

PROJECT PROFILE

Project:

Sattu Manufacturing

Capacity:

90 MT/Annum

Project Cost:

INR 10.36 lakhs

Exported oriented:

Targeted at domestic markets

Candidate industry Sattu Manufacturing

Project description

Project Profile

Relevance of the industry in Karnataka

Possible locations

Manufacturing process

Quality related aspects

Indicative project financials

Project cost
Means of finance
Project feasibility

Candidate industry Sattu Manufacturing

Description

Sattu is made by processing gram. Gram is a commonly used pulse and dal or curry
is made out of it which is a very popular item in majority of the Indian households.

De-husked grams are cleaned, roasted and pulverized to convert them in powder
or flour form and this is known as Sattu. The nutrient value in Sattu is very high

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and is generally used as breakfast diet in many states

Relevance of the industry

Karnataka is one of the largest producers of dal in India. The northern districts are

in Karnataka

famous for cultivation of pulses and grams and houses many milling units. Sattu is
not a popular diet in Karnataka though it is getting popular in urban markets.
Changing urban lifestyles and health consciousness has made sattu a popular

option for breakfast.

Major districts suitable

for the industry

1. All districts of Karnataka

Project Profile: Candidate industry Sattu Manufacturing

Process Flowchart
Manufacturing Process
Gram dal is cleaned with the help of pulse-cleaning machine. The gram dal is

Cleaning and destoning gram dal

also destoned using a destoner. Cleaned dal is then roasted in an electrically

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operated roaster. Roasted dal is cooled and sieved. It is then ground to obtain
finer mesh size. Finally, it is again passed through sieves to remove any

Roasting gram dal

foreign material or coarse powder. The powdered sattu is then packed in PET
bottles and labeled and stored. The process loss is 4-5%
Grinding dal into powder

Quality and compliance

Compliance should be with:

Sieving to remove coarse powder

and dust

1. Prevention of Food Adulterations Acts and Rules, 1954

2. Fruit Products Order, 1955

Packing and laeleling

Project Profile: Candidate industry Sattu Manufacturing

Project Profile

Cost of the Project

Amount (Rs in Lakhs)

Land and Building

2.80

Machinery

4.06

Miscellaneous Assets

0.70

Preliminary and preoperative expenses

0.84

Contingencies (10% of project cost)

0.70

Working capital

1.26

Total cost

Means of Finance

10.36

Amount (Rs in Lakhs)

Promoters contribution

3.08

Term loan from bank

7.28

Debt equity ratio

2.36:1

Project Profile: Candidate industry Sattu Manufacturing

Assumptions
Sale price per Kg

Rs 50 per Kg

Capacity of the unit

90 tonnes per annum

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Projected Profitability

Amount (Rs in Lakhs)

Revenue at 65% utilization

29.25

Cost of production including loan payment

23.81

Profit Before Tax

5.44

Income tax @ 20%

1.09

Profit After Tax

4.35

IRR calculation

Year 1

Year 2

Year 3

Total

Cash Accruals (PAT)

4.35

5.16

6.08

15.58

Discount factor @ 22%

3.57

3.46

3.35

10.38

IRR = 22%

Project Profile: Candidate industry Sattu Manufacturing

Project Profile

Reference:
1.

Ministry of Food Processing Industries, Government of India

2.

Ministry of Micro, Small and Medium Enterprises , Government of India

3.

National Bank for Agriculture and Rural Development

4.

Central Food Technological Research Institute, Mysore

5.

National Horticulture Board

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