SHIBIN NUTRACEUTICALS

PROJECT REPORT
 SHIBIN NUTRACEUTICALS
OBJECTIVE
To build a world class facility for the production of Nutraceutical products
from Microalgae such as Spirulina, Chlorella, Dunelliella and Haematococcus.

INTRODUCTION
Microalgae are microscopic Cyanobateria, typically found in freshwater and
marine systems. Spirulina is a simple, one-celled form of Blue-Green algae that
gets its name from its spiralshape. The product is currently being hailed as the
SUPERFOOD of the future because of its exceptional nutritional content. Spirulina
is a better source of quality protein than either beef or soybean. Moreover Spirulina
contains risk free protein almost on par with mother’s milk in terms of enzymes
and other minerals. It has been widely researched upon natural food with enormous
density of benevolent factors required for stressful modern life. By virtue of this
alga has been rated as the ideal food of humans for 21 st century by UN. Almost all
the countries started using it in one form or another and future demand is likely to
increase in log folds. Apart from fulfilling the basic requirements it is also helpful
in managing and reducing the impacts of many modern ailments at least cost and at
ease of use. Further the Spirulina production is likely to contribute a lot for
environmental conservation as it absorbs enormous quantum of the noxious carbon
dioxide while all the Agri production processes are condemned to utilize the
natural resources. Given this backdrop Spirulina production and allied algae would
be contributing a sizeable percentage of Nutrition, Animal feed, Biofuel, Fertilizer,
Natural Medicines devoid of side effects. These factors give a high ranking for
algal production as it accommodates not only current economic benefits but factors
in long term environmental concerns.
 The process involves inoculation of Spirulina culture in tanks having
mechanized agitators for desertification of the water column, better absorption of
atmospheric carbon dioxide, uniform dispersal of nutrients. About 20-25 gm of
Spirulina grows in 1.0 sq. meter surface area of water in a day. The blue-green
algae is removed fromwater surface and purifiedbefore production of powder by
spraydrying process. It can be produced in very low cost and high cost depending
upon thequality standard of infrastructure facility,production quality parameters
and standardization ofproduct followed.Now HACCP protocols are emphasized in
every production process. Internationally, customers are willing to pay for the
product apremium price and so high end technology to achieve the desired quality
has become a mandate of this industry. A lotof value added health drinks and
products can be generated by using these Microalgae. A lot of research and venture
are the needs of the day. With a little investment a lot can be harnessed in this
virgin area.
ABOUT SPIRULINA
Spirulina, is a Planktonic blue-green algae found in the warm waters of alkaline
volcanic lakes. Spirulina is completely different from other algae in that it is more similar
to bacteria than to plants. But, here is the true magic: Spirulina is rich in raw protein and
seven major vitamins A, B1, B2, B6, B12, C and E. In fact, it is one of the best natural
sources of Vitamin B12. It also naturally contains beta-carotene and other color
enhancing pigments, as well as whole range of minerals. In addition, Spirulina has 62%
amino acid content. It is also one of the most profound anti-oxidants available to us.
Spirulina has an 8-10% photosynthetic conversion rate (land plants have only 3%)

Tropical Zones are suitable for the cultivation of these Microalgae and South of
India especially Tamilnadu is one of the ideal places for the cultivation of these
Microalgae. Our Spirulina is produced in outdoor an open Raceway pond which
necessitates effective pond managements to obtain reproducible yields, quality and
better benefit cost ratio. The ultimate commercial success in production depends
on the management of the large volume of cultures in the raceway ponds free
ofcontamination.
NUTRITIONAL VALUE

Natural Beneficial and Bioavailable Pigment Enhancers:

 Phycocyanin (Blue) : 14%

 Chlorophyll (Green) : 1%
 Carotenoids (Orange/ Red) :47%

Important Trace Minerals:

Which Are Essential For Proper Electrolyte Balance and Osmotic Function
Calcium, Iron, Phosphorus, Iodine, Magnesium, Zinc, Copper, Manganese, Chromium,
Molybdenum, Sodium, Chloride, Potassium, Boron.
 Amino Acids Uses

Isoleucine Required for optimal growth, nitrogen

equilibrium in the body used to synthesize other
non-essential amino acids.
Isoleucine Increases muscular energy levels.

Lysine Building block of Blood antibodies strengthens

circulatory system and maintains normal growth
of cells.
Methionine Vital lipotropic (fat and lipid metabolizing)
amino acid that maintains liver health. An Anti-
Stress factor.
Phenylalanine Stimulates metabolic rate.

Threonine Improves intestinal competence and digestive

assimilation
Tryptophane Increases utilization of B vitamins, improves
nerve health.

Valine Stimulates muscle coordination.

SPIRULINA NUTRIENT COMPARISON
 Spirulina has 300% more calcium than whole milk.
 Spirulina is a concentrated calcium food, supplying more gram for gram,
than milk. Good for bones, osteoporosis and growth of children’s.
 Spirulina has 2300% more Iron than Spinach.
 Good for blood, prevents anemia
 Best natural supplement of Iron and Improves immunity.
 Phycocyanin pigment present makes Iron more bioavailable.
THE BENEFITS OF EATING SPIRULINA
The Blue green algae Spirulina has been used for centuries as a foodstuff among
native peoples of Central Africa and America. Regular intake of Spirulina
 Improves the immune system
 Improves Digestion
 Reduces weariness
 Develops Endurance
 Natural detoxification
 Increases your energy levels
 Controls your appetite
 Retains healthy functioning of cardiovascular system.
 Improves the function of liver and kidneys
 Reduces inflammation
 Can also be used as an anti-allergen
MANUFACTURING PROCESS
Inoculum is prepared in two weeks using glass jars at Lab scale, which is

transferred, in the ponds. This inoculum is grown for 12 to 15 days and is used to

batch inoculate the ponds. The process requires cultivation in ponds for 5 days, by

supplying optimum standardized nutrients. Optimal light intensity of 30-35 k lux

units of light is maintained. Temperature of 30 C is ideally maintained for the

culture with constant agitation of water using paddle rotating at 10-12 rpm for even

dispersal and multiplication of algae filaments. PH is maintained between 9 to 11

by addition of salts like Sodium Bicarbonate. After 5 days the algae is harvested by

filtration, centrifugation or flocculation. Nylon mesh is widely used for filtration

and the washed biomass is dried using spray dryer or Solar Dryers.

Finally the product is stored with vacuum sealing and moisture content is

kept below 5%. The productsare marketed in bulk powder, tablet or capsule form.

Strict quality control measures are adopted at all stages, and good quality grade

chemicals and nutrients are used to achieve the desired qualityproduce. The

method of drying also contributes in obtaining food grade quality product. Dried

Spirulina powder is packed immediately and stored in proper manner.The price in

the market varies based on the technology and grade of Spirulina cultivated. Spray

Dried powders are currently sold in wholesale market at 18 USD/KG.

COMPANY SUMMARY
SHIBIN EXPORTS started its operation in the year 2013 as a merchant
exporter of Nutraceutical products. The first algae culturing and commercial
production has been initiated during January 2015. Our concern is currently
supplying Spirulina both domestically and to International markets. Our current
client base is set at South Korea, Israel, USA, France and Reunion and is likely to
be extended to Uzbekistan and Italy. Our domestic product is registered and
distributed under the brand name “SPIROTEIN”.
CURRENT PRODUCTS OF SPIRULINA
Spirulina Powder
Spirulina Capsules
Spirulina Tablets
Spirulina Crunchies
Phycocyanin pigment
Spirulina personal care products.
Flavored Spirulina and Health drink.
OUR TEAM
Operations of the company are led by Mr.R.D.Shibin, holding a Masters
degree in Applied Microbiology. Our R&D works are overseen by
Dr.Manikandavelu, Professor, an honorary advisor, having over 20 years of
experience in the Micro algal research, and an extensive research experience in
water quality/Aquaculture for more than 30 years.
Further Mr.S.Sivasankar and Dr.Radha, Algal biotechnologists are also
associated with our Research and Development and routine monitoring programs.

ONGOING RESEARCH
i. We are currently looking to standardize growth media for the
commercial cultivation of Haematococcus and extraction of
Astaxanthin. We are working towards setting up a Commercial
production unit for Astaxanthin in a year. Cost of Astaxanthin in the
market varies from 500 USD to 1000 USD/KG depending on the
purity index.
ii. We are also enter into Biodiesel production from Micro algae such as
Nanochloropsis.
iii. Chlorella as we have already standardized culture media for the
cultivation of these Micro Algae.
iv. Dunaliella salina an algae rich in Beta carotene is also under R&D
for extraction of its Carotenoids.
MARKET POTENTIAL AND DEMAND
A Huge Market Demand existing at domestic and international level for both
human consumption as well as in Animal Feed. The various uses include Food
Supplement, Therapeutic Value, and Pharmaceutical Importance. The total
production of Spirulina powder in India is estimated at approximately 700 tones
and almost entire production have been exported to Europe and North American
Markets. Currently the Demand for Spirulina has seen an increase in the Domestic
market. The world demand for Spirulina is estimated at 5000 tones/year and total
supply is to the extent of about 2000 tons/year. We are also seeing a huge increase
in the demand of Spirulina in the natural pigment industry for preparation of
Phycocyanin pigment from the Microalgae.

APPLICATIONS OF SPIRULINA
PURPOSE OF RAISING VENTURE CAPITAL
We have in the last one year developed a low cost method for the cultivation
of Micro algae and commercialize large scale production of Spirulina. In order to
improve the quality of the Microalgae and improve production we would like to
use machines for the harvesting and drying of the Spirulina. We need more funds
to Increase production to meet market demand and achieve our target of producing
minimum of 5000 kg Spirulina powder in the next 6 to 8 months. Funds would also
be utilized for launching and marketing our own Spirulina health mix powder for
Milks. Opportunities are also available to enter into Fortified Juices or Energy
Drinks with Spirulina. We are seeing an increased number of enquiries for the
Spirulina and with necessary funds we would be able to support the growing
demands for our Spirulina.

ASSUMPTIONS
1. It is presumed that the unit will run one shift per day and 300 working days
per annum. Average rainy days will not be accounted.
2. The Following extraction rates are presumed:
Spirulina Powder 70%
Spirulina Tablet 20%
Spirulina Capsules 9%
Spirulina Crunchiness 1%
3. Labor wages has been accounted as per minimum wages act.
4. The rates quoted in respect of machinery/equipment raw materials are those
prevailing at the time of preparation of the report and are likely to vary from
place to place and supplier to supplier and necessary changes are to be made
as and when required.
IMPLEMENTATION SCHEDULE
The approximate time required for various activities is given below.
1. Selection & preparation for construction - 1 Month
2. Construction of Pond - 6 Months
3. Culture development in Lab - 2 Months
4. Scale up of Inoculum to ponds - 1 Month
5. Machinery Procurement , Installation and trial run - 3 Months
Requirement:
1. Production manager - 1 No
2. Microbiologist/QC - 2 No’s
3. Labors/Operators - 15 No’s
4. Power requirement of the unit is 30 HP.
5. There is no pollution problem for the unit which will affect the machinery
and health of the workers.
FINANCIAL ASPECTS

Land and Building

Land: 5 Acre
a) Pond : 4.0 Acres
b) Filtration/Spray Drier : 0.3 Acre
c) Store room (RM & FG) : 0.2 Acre
d) Laboratory/Admin : 0.1 Acre
e) Others : 0.4 acres
Resource
Power: 30 HP
Average Unit per month: 2000
Water: 2,250,000 Ltr
Alternative Power supply
Generator (stand by):30 HP
Fuel (HSD): Depends on actual power failure
Plant & Machinery
S.No Equipments Quantity
1 Paddle wheel agitators 15 No’s
2 Spray Dryers 2 units
3 Mixing tank 2 units
4 Blender 1 unit
5 Washing table 5 Unit
6 Harvester 1 unit
7 Centrifuge 1 unit
8 Packing Unit 1 unit
9 Capsule making machine 1 unit
10 Tablets making machine 1 unit
11 Labor canteen and rest room 1 unit

Motors & gear boxes

S.No Equipments Quantity
1 1 HP motors for Agitators 1 No’s
2 Gear box (1:20) 15 No’s
3 Chemical pump 2 No’s
4 Screw Pump 2 No’s
5 Submersible pump (3 HP 1 No’s
6 Commercial quantity RO system 10000 L 1 unit
capacity
Laboratory Equipments:
S.No Equipments Quantity
1 Distillation Units 2
2 Spectrophotometer 1
3 Calorimeter 1
4 pH meter 1
5 Kjeldhal apparatus 1
6 Chemical storage cabinet 1
7 Incubator 1
8 Hot air oven 1
9 Centrifuge 1
10 Cooling centrifuge 1
11 Laminar airflow chamber 1
12 HPLC 1
13 Freeze Drier 1
14 Tray drier 1
15 Glassware and chemicals

Other equipments:
S.No Equipments Quantity
1 Deep freezers 2 No’s
2 Storage Drum 20 No’s
3 Filter Cloth (Polyester) 500 Meter
4 Filter Cloth (SS) 50 Meter
Raw Materials:
I. Sodium bicarbonate
II. Sodium nitrate
III. Potassium sulphate
IV. Magnesium sulphate
V. Ferrous sulphate
VI. Sodium Chloride
VII. A5 Solution
PROJECT PARAMETERS

CAPACITY
Proposed Capacity of the Plant 5000 Kg Dry Spirulina per month (5 MT)
LAND
The land required for constructing ponds, Quality Checking lab,plant for drying
and packing ,storage house etc estimated to be 5 acres.The land will have adequate
water facility for filling the ponds and other operations.
LOCATION
The project is proposed to be located at Manampathi village, Tamilnadu, India.
PLANT AND MACHINERY
The major plant & machineries are Raceway ponds using 550GSM tarpaulins with
Automatic Agitator, Mechanized Cleaning of Biomass, Vibrated sieving filters,
Spray Dryer &Vacuum Packing Machine.
RAW MATERIALS & UTILITIES
The main raw material is Mother Culture of Spirulina Algae .Water and adequate
sunlight is the chief utility required for the project and proposed unit location is
selected keeping in mind the major requirements.
MANPOWER
Estimated manpower requirement for the project is 20 No’s

COST OF THE PROJECT in INR

Land - 5 Acre 2500000

Building - Store Room 2000000

Pond Construction 6000000

Spray dryer 1000000

Harvester 500000

Bottling and packing machines 100000

R&D activities & Lab works 500000

Brand Building and Marketing 1000000

Other Expenses (Govt cost, fencing etc.) 1000000

Initial setup cost 14600000

Margin for Working Capital- 4 months 6000000

Project capital required 20600000

Approximate implementation period is estimated to be 6months.

COST ESTIMATION PER YEAR
Average production cost per KG of spirulina powder
Cost/Kg
Direct Cost %
in INR
Culture Nutrient Cost 300 75%
Manufacturing wages +
100 25%
Energy cost (Electricity/Fuel)
FINANCIAL ANALYSIS
COST OF PRODUCTION (50 MT/Year)
Total recurring cost per year - Spirulina
20000000
(INR400/KG)

Miscellaneous Expenses 500000

Total in INR 20500000

ESTIMATED SALES VOLUME

Turnover per year (Item) Value (Rs)

Spirulina Powder 35000 KG @ 900 INR 31500000

Sprulina Tablet/Capsule 15000 KG @ 1500
INR 22500000
Total (Rs) 54000000

NET PROFIT PER YEAR (before Income tax)

Profit = Sales – Production Cost
Profit =54000000-20500000
Profit =33500000 (3.35Crores)