Project report for the Production of “Areca nut Leaf Cups and Plates”

Owner : Smt.Bhagyamma w/o Anandappa

Production Capacity 90 lakh leaf cups and 45 lakh leaf plates

1.0 Product and Its Applications

Leaf cups and plates are traditionally made by hand in Indian villages. These are commonly used for serving food
at marriages, religions and social functions. The laborious craft can now be converted into a machine operation to
make these containers in elegant shapes and sizes. Such cups and plates are made out of plant leaves of
beautia, arecanut sheath, banana etc. These have good dimensional stability and are inexpensive, hygienic and
biodegradable.

2.0 Market Potential

There is a large scope for setting up cottage scale units in most parts of India. The cups and plates are in large
demand by hawkers, fast food restaurants, star-hotels, mass feeding and for prasadam in religious institutions.

3.0 Basis and Presumption

 The unit will work for 300 days per annum on a single shift basis.
 The unit can achieve its full capacity utilization during the first month of operation.
 The wages for skilled workers are taken as per prevailing rates in this type of industry.
 Interest rate for total capital investment is calculated @ 12% per annum.
 The entrepreneur is expected to raise 20-25% of the capital as margin money.
 The unit would construct its own building.
 Costs of machinery and equipment are based on average prices of machinery manufacturers.

4.0 Implementation schedule

Project implementation will take a period of 8 months. Break-up of the activities and relative time for each activity
is shown below

Scheme preparation and approval 01 month

Sanction of financial supports etc. 2-5 months

Installation of machinery and power connection 01 months

Trial run and production 01 month

5.0 Technical Aspects

5.1 Location
The plant would have 5 machines. It will be located in land of Shri P.Basavaraju S/o Puttaveerappa.,
Kurabarahalli village, Sy no: 93/1, (Rental basis) , where leaves of banana, beautia, bauhinia and arecanut palm
sheaths are available. It can also work without electricity.
 5.2 Salient Features of Process / Technology
The leaf cup machine is a simple pedal operated machine, manually operated with minimum power consumption.
It requires 300 watts of electric power. It can also work without power by kerosene oil blow lamp. The leaves are
washed and dried to retain their pliability and kept in a polythene bag to avoid drying before use. The leaves are
placed on the lower die platten, the pedal is pressed down and released after a few seconds. All the operation
like folding, trimming, pressing into shape and drying are done in a single operation by pressing the pedal lever.
The leaf cup, subjected to heating to 150 degree C for 10 seconds also gets sterilized.

6.0 Pollution Control

There is no major pollution problem associated with this industry except for disposal of waste which should be
managed appropriately.

7.0 Energy Conservation

No coal or LDO is being used. If kerosene oil blow lamp is used, care should be taken in regularly cleaning the
nozzles and proper air mixture to minimize smoke.

8.0 Production Capacity

Quantity Leaf cups 12 lakh + leaf plates 4lakh

Installed capacity 12 lakh cups + 5lakh plates

Optimum capacity utilization 70%

Working days 300/annum

Manpower 7

Utilities

Motive Power 1 kWH

Water kL/day 0.3 kL/day

9.0 Financial Aspects

9.1 Fixed Capital

Land & Building Amount (Rs. Lakh)

Land sq.m. Rental Rs 3000/ month

Built up Area 460 sq. m. 7.50

Total cost of Land and Building 7.50