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Manufacturing of Potato Chips, Extruded & Fried Snacks: Detail Project Report On
Manufacturing of Potato Chips, Extruded & Fried Snacks: Detail Project Report On
MANUFACTURING OF POTATO
CHIPS, EXTRUDED & FRIED SNACKS
BY
AT
D1-150/G-2, MONDAL PARA ROAD, BISHNU BHAWAN, WARD NO. 31, PUTKHALI,
PO&PS- MAHESHTALA, DIST. SOUTH24 PARGANAS, KOLKATA-700139
Prepared by September-2020
1. PROJECT AT A GLANCE
2. COMPANY PROFILE
M/S, Briny Food Products, is a proprietorship company. The company was established in Aug-
2015 with its Registered office at D1-150/G-2, MONDAL PARA ROAD, BISHNU BHAWAN,
WARD NO. 31, PUTKHALI, PO&PS- MAHESHTALA, DIST. SOUTH24 PARGANAS, KOLKATA-
700139: GSTIN: 19CZPPM5302P2ZL. The main objective of the Company to doing a business
in the area of manufacture and sale of Potato chips and others fried and extruded snacks
items. Presently the Company has no liability to bank and any other financial institution.
The name of the Proprietor is Mr. Avik Mondal. He is an young and motivated entrepreneur
working hard for his success. In 2019 at the age of 22years, Avik has joined “Budge Budge St
Thomas Memorial Educational Society” in Budge Budge as a Member of the Governing Body
& to run the School at high end level and began sending information to the School. Avik is
extremely passionate about entrepreneurship and enjoys sharing what he’s learned with
others. Avik is pursuing Graduation from KIIT School of Architecture and Planning,
Bhubaneshwar, Ordisha with a Degree in Architecture. Avik always had a passion for
entrepreneurship and saw himself working in Food Processing with a big name in Snacks
Industry.
The Promoter of this Company have other Business activities in line of Construction with
Buildings, Road and other Civil works with engaged in Govt. and different private work
contract in the Banner of SUNIRMAN. This is the Proprietorship Company with the same
Proprietor of Mr. Avik Mondal. The Company “SUNIRMAN” was established in the year of
2017 with registered office address at 204/C, DHARMATALA ROAD, BUDGE BUDGE, SOUTH 24
PARGANAS, KOLKATA-700137.
After in-house business investigation towards that end, potato chips and others fried and
extruded snacks manufacturing activity has been identified by the company promoter as one
of the attractive business possibilities. The group has thereafter embarked on the potato chips
and other snacks manufacturing project under the banner of BRINY FOOD PRODUCTS.
With objectives to accelerate the growth of food processing industry in the country, to
achieve processing level of perishables up to 20% of the produce, increasing value addition
up to 35% and capturing the share in global food trade up to 3% by the year 2020.
Main feature of this Food Processing Centre for developing infrastructural facilities along
the value chain for forward and backward integration. The project focuses on demand driven,
pre-marketed approach and would facilitate food processing units to meet various food
safety, social and environmental standards.
The outcomes envisioned are: remunerative prices to the farmers for their produce which will
result in drudgery reduction in agriculture, curbing the wastages in agricultural produce
thereby increasing effective marketable surplus, capacity building for the producers,
providing alternative marketing channels to the farmers, efficient supply chain along with
direct and indirect employment generation so as to get labour force out from the
agricultural system which is a part of disguised unemployment.
3. BIO-DATE OF PROPRIETORS
PRESENT & PARMANENT ADDRESS : 204/C, DHARMATALA ROAD, BUDGE BUDGE, SOUTH
24 PARAGANAS, KOLKATA - 700137
SEX : MALE
PROFESSION : BUSINESS
4. PROJECT INTRODUCTION
Consumers are buying snacks in greater variety and quantity than ever, and extrusion
technology produces almost all of them. Snacks are one of the fastest-growing segments of
the food industry, and for years, extrusion has been a mainstay of producing new and creative
products. Extrusion cooking produces a wide range of finished products from inexpensive raw
materials with minimum processing time.
A snack food (commonly called a snack) is seen in Western culture as a type of food not
meant to be eaten as a main meal of the day – breakfast, lunch, or dinner – but one rather
that is intended to assuage a person's hunger between these meals, providing a brief supply
of energy for the body. The term may also refer to a food item consumed between meals
purely for the enjoyment of its taste.
Traditionally snacks were prepared from ingredients commonly available in the home, often
leftovers, sandwiches made from cold cuts, nuts, fruit, and the like
Traditionally snacks were prepared from ingredients commonly available in the home, often
leftovers, sandwiches made from cold cuts, nuts, fruit, and the like. The Dagwood
sandwich was originally the humorous result of a cartoon character's desire for large snacks.
With the multiplication of convenience stores, packaged snack foods are now a significant
business. Snack foods are typically designed to be portable, quick and
satisfying. Processed snack foods are designed to be less perishable, more durable, and/or
more appealing than prepared foods. They often contain substantial amounts
of sweeteners, preservatives, and appealing ingredients such as chocolate, peanuts, and
specially designed flavors (such as flavored potato chips). A snack eaten shortly before going
to bed or during the night may be called a midnight snack.
In India around 12 million tonnes of potato is grown which is about 4% of the total world
production However, the per capita consumption of potatoes is low. It is estimated that 25%
of the potatoes, which is spoiled due to Various reasons such as transportation, type of
packing, availability of cold storage Capacities during Harvesting Season , glut in the market
etc., could be saved by making various Preserved potato products Potato wafer is one of such
products which has a great potential as this is considered as one of the traditional food of
India. Potato wafers are needed to be made in a scientific manner and under hygienic
conditions.
The popularity of snacks food is growing fast day-by-day and potato wafers have emerged as
a potential snack food. A number of organized as well as unorganized groups are already
there, catering to the needs of tea stalls, restaurants, railway stations, tourist places etc. Still
there is a huge demand to be met for these products in interior and remote places in different
parts of the country
Salted snacks are a part of the snacks consumed by Indians. Since Indians are known
worldwide for their tasty tangy and spicy food habits the snacks industry in India is huge is no
surprise. The Snacks market in India is magnanimous which consists of both the organized and
the unorganized sectors. The unorganized market consists of home made and loose salty
snacks generally sold in small Kiranas. The branded or the organized Snacks segment in India
is increasing virtually by the day. Some of the major players in the Indian Snacks market consist
of Haldiram Foods, Frito-Lay, Balaji wafers, Itc Bingo etc.
The salted snacks-namkeen manufacturing project has lot of scopes and huge market demand
as it is a product of FMCG industry. Products are quite famous in India and are consumed in
good quantity. Potatto Chips, Extruded and pallet fried snacks are the important names of
salted snacks. These are very tasty and flavouring. These are used during tea and drink hours.
They are also used in medicinal way, however little it may be, according to ayurveda because
of their carminative stimulative digestive properties.
The main raw materials for these products are potato, Cereals, Gram pulses, Oils & spices.
The various food additives & colours may be used to provide sophistications in the products.
the raw material are frequency available in India. These salty food products get a broad
market in foreign countries. These products are very much popular not only in India but also
overseas countries. Hence, there are a lot of scope and market of these products & therefore,
it will provide a very much profitable business.
Potato chips currently represent one of the world’s most popular snack foods. From its
accidental birth in 1853, the potato chips market has evolved with time and currently
represents a multi-billion dollar market. Owing to their easy affordability and cheaper price
even for the premium products, potato chips are popular among all age groups. Currently, the
growing young population (below 15 years) represents a key segment for the potato chips
market. Major factors driving the global demand of potato chips are growing urbanisation,
rise in disposable incomes and rapidly changing lifestyles. A busy lifestyle coupled with long
working hours have forced people to shift from elaborate luncheons and meals to desk snacks
and packaged foods. Other factors like value addition and growth of emerging markets are
also expected to propel the demand of this market. According to IMARC Group, the global
potato chips market has grown at a CAGR of around 4% during 2009-2016 and reached a
market value worth US$ 26 Billion.
Due to the busier lifestyle in the recent past, the demand for convenience products has
increased a lot with the thrust of packaged food in India. With the advancement of
technology, urbanization, increase in purchasing power, growth in female work population,
expansion of nuclear families has augmented the business of the packaged snack food and
attracted a large mass toward the snack market in India. In order to save time, people are
gradually shifting to ready to eat food items.
And the growth rate of the packaged food market has been remarkable in last five years. The
food industry has expanded at the rate of 15.6% over the last few years. The consistent growth
rate presently outlooks for driving growth in future too.
The consumers are looking forward for healthier and flavourful options in the food market.
There is an increase in the consumer interest towards snacks as there are various brands in
this segment with newer technology and more benefits giving them refreshing and quick
meals.
The fast expanding retail network and the convenience and ease of acquiring it, contributes
towards the rapid growth of the industry. I addition, there are no such regulations and
Government policies regarding the establishment of such companies in India which motivates
the manufacturers to set up its units.
Apart from this, there are some challenges the Indian snack industry has which can result in a
setback. Despite of so many companied in the market, the market yet needs to find Indian
flavors to fully satisfy them. The new items have failed to replace the traditional food at some
places. Chips and biscuits are still considered by Indians and so new categories are created
which would require time and persistence. Healthier and tastier snack is still needed to raise
the demands.
So the leading players in this segment are taking relevant steps to retain, sustain and grow in
the market. They are trying their level best with various innovative options, tastes and flavors
in the industry meeting the expectations of Indian consumers.
The Indian snack industry snack industry has major trends and developments in India over the
years. It is stable at present and has strong growth potential in future.
As a result, farmers are about 15-20 per cent worse off, even after taking into account the
gains in productivity. There are very few examples of successful food processing centres,
much less the agricultural clusters, not just in India but even globally. Location of food-
processing units should be strategically placed depending upon the raw material availability,
labour, product utilisation and domestic and/or export marketing.
Food processing industry is of enormous significance for India’s development because of the
vital linkages and synergies it promotes between the two pillars of our economy, industry and
agriculture. Fast growth in the food processing sector and simultaneous improvement in the
development of value chain are also of great importance to achieve favourable terms of trade
for Indian agriculture both in the domestic and the international markets. The sector however,
has to go a long way. Even important is the crucial contribution that an efficient food
processing industry could make in the nation’s food security for instance the post- harvest
losses of selected fruits and vegetables are about 25 to 30 percent in our country. Even
marginal reductions in these losses are bound to give us better returns and thereby improve
the income level of the farmers.
India has evolved from a food-scarce to a food-surplus nation during the last decade and the
ever-growing trade in the production of food commodities indicates that the industry is on
track in terms of growth and profitability. India’s USD 600 Billion food processing industry is
expected to grow three-fold by 2020. India currently ranks second in terms of global food
production, next only to China.
India leads in the production of milk, bananas, mangoes, guavas, papayas, ginger and buffalo
meat. However, in order to realise the maximum potential of the sector, a rising concern of
wastage needs a dire attention. Hence, the development of the sector in the country will
further strengthen the link between agriculture and manufacturing by using modern food
processing technologies and cold storage techniques.
The term 'food processing' is mainly defined as a process of value addition to the agricultural
or horticultural produce by various methods like grading, sorting and packaging. In other
words, it is a technique of manufacturing and preserving food substances in an effective
manner with a view to enhance their shelf life; improve quality as well as make them
functionally more useful. It covers spectrum of products from sub-sectors comprising
agriculture, horticulture, plantation, animal husbandry and fisheries.
Food processing industry is one of the largest industry in India and is ranked 5th in terms of
production, consumption and export. Earlier, food processing was largely confined to the food
preservation, packaging and transportation, which mainly involved salting, curdling, drying,
pickling, etc. However, over the years, with emerging new markets and technologies, the
sector has widened its scope. It has started producing many new items like ready-to-eat food,
beverages, processed and frozen fruit and vegetable products, marine and meat products,
etc. It also includes establishment of post-harvest infrastructure for processing of various food
items like cold storage facilities, food parks, packaging centres, value added centres,
irradiation facilities and modernised abattoir.
The food processing sector comprises of two segments- Primary processed food and Value
added food. Primary segment comprises of packaged fruit and vegetables, milk, flour, rice,
spices etc and constitutes around 62% in value terms of the processed foods. Value added
segment includes processed fruits and vegetables, juices, jam & jelly etc and holds around 38
% share in the total processed food.
In an emerging country like India, where growth with equity is a primary policy thrust, the
optimum development of the food processing sector will contribute significantly in tackling
several developmental concerns such as disguised unemployment in agriculture, rural
poverty, food security, food inflation, improved nutrition, prevention of wastage of food etc.
By serving as a bridge between agriculture and manufacturing and by dealing with a basic
need of all Indian citizens – the assured supply of healthy and affordable food at all locations
in the country, this sector has the potential to be a major driver in India‘s growth in the coming
years. In fact the food processing sector has been growing faster than the agriculture sector.
The food processing industry includes a diverse group of companies involved in the processing
of products like fish, meat, milk, crops and water. It includes millions of Small & Medium
Enterprises (SMEs) worldwide and also some of the largest companies in the world. Many of
these companies deliver products directly to consumers, while others specialize in Business-
to-Business activities (ingredients, commodity markets). Some companies directly participate
in all areas of food production, from farming activities through to final production and retail.
Others are concentrated more at the top end of the production chain or buy through
commodity markets. In fact, Food processing is one of the world‘s largest industries from the
perspective of the number of companies involved in the sector, as well as in terms of its total
economic value.
The food processing sector has been growing at the rate of 12 per cent annually, officials
said. The entire Indian agriculture value chain is set to change drastically and food processing
is going to be one of the main industries of the country in the future, Finance Minister Arun
Jaitley said in November 2017. And, we are feeling right as on today.
It’s only growing. A lot of western food and beverage giants are already looking to collaborate
with Indian companies for their packaged food products. Companies that manufacture full
food processing lines are also eying this part of the world. Every year when I visit the trade
shows, I see more processed food exhibitors than the previous year. And, Online food
ordering business in India is in its nascent stage, but witnessing exponential growth.
The organized food business in India, which is worth USD 48 billion, of which food delivery is
valued at USD 15 billion, has a huge potential, and hundreds of new era of food processing
will be created, by keeping these all facts.
There is too much potential for a new entrepreneur, who would like to enter in food
processing like the following:
FDI POLICY- 100 % FDI under government approval route for, trading, including through e-
Commerce for Food Products produced and manufactured in India.
FISCAL INCENTIVE- 100 % Income tax exemption to food processing, units on profits for
the first five years of operation and 25 % thereafter for the next 5 years. Pasteurizing, drying,
evaporating, etc. machinery used in Dairy Sector is exempted from Excise Duty. Excise duty
Refrigerated containers from 12.5% to 6%. Custome duty reduction in cold storage related
items in Budget 2016-17.
MEGA FOOD PARK- Government giving grand aid up to 75% on the basis of the general area
or a difficult area to set up Mega Food Park.
SPECIAL FUND IN NABARD- To provide loans up to seven years, they have accumulated
Rs.2000 crore of the fund to NABARD for food processing units.
Above are the few examples, such hundreds of arrangements are being done by Government
to strengthen food Industries in India, thus definitely, the future is very bright.
And not only these are the only reason, but the cause behind the bright future of Food
Industry is also:
According to research by the India Brand Equity Foundation, the spending capacity of the
Indian middle class is anticipated to double by 2025. With the rise in disposable income and
access to credit, the Indian middle class will have a high spending capacity on ready to eat or
other food items, which was not the scenario before 10years.
Thanks to a growing population and rising income levels, the Indian food sector has one of the
strongest growth fundamentals of any industry. For packaged snack foods these fundamentals
are complemented by two further growth drivers; convenience and the nation’s eating habits.
With smaller families leading busier urban lives, the time and resources for regular home
cooking are rapidly declining. At the same time, longer working hours and lengthy commutes
leave less time for regular sit-down meals. Snack foods have been a long-time favourite in the
Indian diet and now packaged and branded variants of namkeen, sweets and wafers have
become the natural solution to the culinary cravings induced by the modern Indian lifestyle.
The combination of these factors is propelling the snack food sector toward a projected
compound annual growth rate of 14% from 2011 to 2015.
Established snack food players like Haldirams and Pepsi Lehar have been joined by a new wave
of market entrants in recent years, attracted to the sector thanks to its high growth rate and
the relatively low level of capital required to establish production.
Amongst the new arrivals are many regional entrepreneurs who have backed themselves to
succeed based on a better understanding of India’s distinctive local tastes and delicacies.
Meanwhile, large FMCG players have bet that their brand name and marketing expertise can
extend their clout to a new product category.
Although the market is large and diverse enough to accommodate a broad range of both
existing players and new entrants, those moving into the sector need to be aware of a number
of challenges to long-term success and develop their strategies accordingly.
Companies entering the Indian snack food market need to be braced for competition on all
fronts. Simply transposing the competitive scenario from the national level to a regional
setting could be a recipe for over-optimistic sales projections. In many areas, local producers
catering to specific regional tastes may actually be a greater threat than the leading national
brand names.
At the other end of the spectrum, the existing pan-India competition may be disrupted by
large consumer goods firms and major retailers making a foray into the snack food sector. ITC
has been the most notable example of this through its heavily promoted Bingo chip brand.
With the scope of organized retail ever expanding, private label brands such as Tasty Treats
from Big Bazaar will also pose a stiffer challenge to snack food manufacturers hoping to sell
through this increasingly important channel.
Companies entering India’s snack food market should build their entry strategy around their
own key strengths to ensure they are better prepared to take on the competition. For
example, those companies starting out with a more limited product range may benefit from
launching in multiple locations in order to achieve sustainable volumes and gain sufficient
customer insights. On the other, hand those companies possessing a wide variety of products
may do well to focus on a particular region first. Allowing them to achieve penetration across
categories as well testing the more complex distribution this entails before they expand
elsewhere. In both scenarios, companies need to carry out a detailed analysis of consumer
tastes and conduct competitor mapping at the local and national level before deciding on their
preferred points of entry.
Input costs are a critical factor in the food industry and commodity prices have been rising at
record rates in recent years. In India, the vagaries of the monsoon have a major effect on the
price of snack food staples like wheat and potato, and the volatility of the Rupee creates
additional challenges for those using imported ingredients like cocoa. Furthermore, as food
accounts for a high percentage of the average Indian’s budget, even small price movements
can a have a major effect on demand.
Firstly, snack food manufacturers need to develop a clear pricing strategy so they can respond
in a timely and effective manner to rising costs. When confronted with such a scenario they
have three possible options: increase prices, reduce pack size or keep prices the same.
All of these options have advantages and disadvantages but manufacturers should prepare
their response according to their target customer, the response of their competitors and their
long-term strategy. For example, a mass-market potato chip manufacturer with highly price-
sensitive customers may seek to absorb lower margins to gain market share from competitors
who immediately pass on rising costs to their customer.
In addition to pricing strategies, manufacturers could develop lower cost alternatives to their
existing products to retain price-conscious customers. Due to high cocoa prices, a number of
leading Indian brands have launched biscuits with lower cost vanilla fillings rather than the
traditional chocolate in order to keep prices affordable.
Thirdly, India’s highly fragmented food chain offers plenty of scope for backward integration.
This would eliminate the margin captured by a large number of non-value-adding
intermediaries, resulting in lower input costs. Pepsi Lehar pioneered such a strategy through
contract farming in Punjab. By agreeing directly with the farmers to purchase potatoes at a
fixed price in advance, they can guarantee future supplies at stable prices. With the regulatory
environment becoming more favourable, such initiatives will become a critical factor for long-
term success in the Indian snack food market.
To counter this risk of misreading the market, snack food companies should closely monitor
the micro trends occurring within their target customer group as well as tracking the macro
trends affecting the sector as a whole. Such an approach will give companies the confidence
to take a divergent view from the competition wherever it better serves their customers.
Taking stock of the challenges in the Indian snack food sector and preparing a coherent set of
strategic responses will stand companies in good stead as they seek to exploit the growing
market opportunity and withstand the intensifying competition.
5. MARKET STUDY
by 2020. Ethnics and traditional snacks is the largest category in the Indian Savory Snacks
Market.
The Indian snack market offers around 1,000 snack items. The branded namkeen segment
consists of 40% market share of the total salted snacks market in India. The market leaders
that own all the to namkeen brands in India is Haldirams that has a market share of 41 % and
then follows Frito Lays that has a market share of 10%.
Consumptions pattern which is usually followed by the people in general. Penetration into the
ready market as competitors. Customers have some choice of various flavours and tastes.
The branded salty snacks market has come a long way from the 1990s, when the market was
marked by the presence of brands like Haldiram’s and Uncle Chipps (eventually acquired by
PepsiCo) and there were few other regional brands. The market registered a major leap in the
mid-90s when beverage major PepsiCo introduced Lay’s and Cheetos, and later, Kurkure.
Since then, many national and regional players have forayed into the space with diverse
offerings. Post 2005, consumer products companies ITC (Bingo) and Parle Agro (Hippo) also
entered the market, and, in 2009, Cavinkare also made inroads into the market through the
acquisition of Garden Namkeens. Several organized retailers have introduced their private
labels in this space. Global food and beverages company Del Monte has been envisaging an
Indian market entry (as per media reports).
At present, the branded salty snacks market is estimated to be worth INR 10,000 crore (USD
1.68 billion), and is projected to grow at a CAGR of 15-18% over the next few years. This
market can be broadly divided into two segments, viz.
ü Western snacks Potato chips, extruded snacks like Kurkure, etc.
ü Traditional snacks Namkeens, bhujia, daal, bhakarwadi, khakhra, banana chips, etc.
PepsiCo leads the western snacks market, and, together with other prominent players in this
segment (ITC, Balaji, Parle Products, Prakash Snacks, and Haldiram’s), holds a share in excess
of 70% of the market. In the traditional snacks space, Haldiram’s and the regional player, Balaji
Namkeen, together account for over 50%.
The rest of the market is fragmented, and understandably so, given that the market is driven
by strong regional tastes and preferences. There are several reasons which have led to the
growth of the branded salty snacks markets. Some of these are mentioned below:
Chakoli, Mathri, Gathiya, Samosas, etc. which has seen several consumers upgrade
from the unbranded market to branded products. Also, given the increasing concerns
surrounding ‘unhealthy’ snacking, players have positioned brands and products
around ‘health’, e.g. baked, roasted, multigrain, low fat, etc. to reach out to the health-
conscious segments. This has helped them target a larger consumer base across the
country.
• Greater availability and affordability: Branded snacks are now easily available across
both modern and traditional retail formats, from supermarkets and mom-and-pop
stores to small tea stalls, office canteens, paanwalas, etc. Most brands are available in
multiple pack sizes including small ones at attractive price points (INR 5, 10, etc.)
leading to higher affordability and increased category presence and more product
trials.
While the branded market was created and led by western snacks, both western and
traditional snacks today hold a nearly equal share, indicating the higher growth of branded
traditional snacks. However, this does not imply that the growth has come at the cost of
western snacks; it is more due to the unbranded market being converted to a branded
traditional market. Another trend which is true for traditional snacks is that while our palates
may change every 200 km, and regional preferences are strong, there has been an increasing
democratization of preferences, and many hitherto regional snack items have found
nationwide acceptance, e.g. banana chips.
Over the past few years, the market has witnessed a slew of activities, the emergence of new
players, the expansion of snacks portfolio through continuous product innovations, aggressive
marketing campaigns to establish consumer connect, shift in consumption with increasing
demand for convenience, etc. Going forward, the prospects for the branded snacks market
remain bright. However, players will need to focus continuously on product innovation to
combat competition, both from within this category (branded as well as unbranded) as well
as from other categories. While consumers are upgrading to branded products, the
unbranded market remains huge in size. Also, there are still hundreds of traditional snack
categories for which branded options do not exist, which presents both an opportunity as well
as a threat.
Additionally, rising health consciousness owing to sedentary lifestyles and the increasing
incidence of lifestyle diseases in urban India has resulted in a demand for ‘healthy’ snacks.
This is only expected to increase in the future and presents lucrative opportunities for both
existing as well as new players. The challenge will be to achieve the right balance of taste,
health, and price.
Distribution remains the key to any brand; the challenge for players will be to strengthen their
distribution networks and expand their retail reach. For regional brands, growing outside their
‘home turf’ and connecting with consumers in other regions will be a challenge. Players will
need to be prudent and understand the regional palate and pulse. Moreover, maintaining
product price points and margins is crucial given the fluctuations in raw material costs and the
investment in manufacturing, limiting the creation of economies of scale. Despite these
challenges, branded salty snacks will remain an attractive market opportunity in times to
come. It will be interesting to see how the competition in this market pans out over the next
few years.
The India Snacks Market will be more than INR 1 Billion by the end of
2024.
The future of India Snacks Market can be judged from the fact that this industry is expected
to grow with double digit CAGR for the time frame of 2018 to 2024. India snacks market is
dived between organized players and unorganized market. At present Unorganized market is
dominating the India snacks market. But this scenario is expected to change during the
forecast period of 2018-2024. India Snacks Market is growing due to following factors Lifestyle
Changes, Rising Urbanization, Growing Middle Class Population, Local Availability and
Availability of Snacks in Small Package Size, Low Price and Company's Strategies to focus on
regional taste.
A consumer survey has also been done in the report on the snacks industry in India. The survey
has been done on Snacks Price Range, Extruded Snacks Brands Consumers Like to Buy Chips
Brands popular in Consumers, Namkeen Brands Consumers buying.
There is a large number of players working in the Indian snacks market. Their presence is
limited within a town, city or a particular area. They do not think too much for expansion. As
a results, their main focus to develop snacks items according to the consumers taste in a
particular area. This helps them to be popular in that region. Also their products are low priced
compared to organized players.
India snacks market is segmented into Extruded Snacks, Chips, Namkeen and Others. In terms
of market value share, Namkeen has the highest market share compared to all other segments
Extruded Snacks, Chips and Others. At present, in both organized and unorganized market,
Namkeen is the leading segment.
Pratap Snacks, Balaji Wafers, DFM Foods, Bikanervala, Haldirams and PepsiCo India are some
of the most popular snacks companies in the India organized snacks market. PepsiCo India has
the highest its market share year compared to other snacks companies present in India.
India Chips Market Overview, 2018-2023" provides deep analysis of the India Chips snacks
market, with size in terms of both the value and volume of the chips market, and also provides
market share of different segments. The report is formed by segregating data from various
sources and various time frames.
It consists of various historical data and is based on the current situation of the market and
key factors provide a forecast based on the best suitable method. This could defiantly be
helpful in identifying the market segments which are driving growth. The report consists
profiles of leading companies and provides the market share of their brands which would be
helpful in examining market competition as well.
The Indian chips market has shown remarkable growth in the past couple of years. The market
is forecast to grow with a CAGR of more than 9% in the near future. Currently, the growing
young population (below 15 years) represents a key segment for the potato chips market.
Major factors driving the global demand of potato chips are growing urbanisation, the rise in
disposable incomes and rapidly changing lifestyles.
A busy lifestyle coupled with long working hours have forced people to shift from elaborate
luncheons and meals to desk snacks and packaged foods. Snack companies are branching out
from original recipes and launching line extensions that deliver interesting ingredients,
flavours, and textures to consumers looking for new experiences or alternative ingredients for
health reasons. Existing players include PepsiCo, Balaji Wafers, Prataap Snacks, Haldiram, are
some leading players in Chips Category.
6. MARKETING PLAN:
As the ethnic foods category is growing, cash-rich companies make a beeline for a share of
the salty snacks market. Around 1,000 snack items are sold in India spanning various tastes,
forms, textures, aromas, bases, sizes, shapes and fillings. Some 300 types of savories sell here
and the overall snack product market (inclusive of sweetmeats) is estimated at Rs.25,000
crore.
The branded salty snacks market (size: 1200 Crores) is 40% of the total market (size: 3000
Crores), it's bustling nevertheless. The branded segment is increasing at the rate of 25% per
annum whereas the entire market is increasing at the rate of 7%. In the past 2-3years the
unbranded sector has witnessed a decline of 5% per annum.
Indians seem to be snacking on ethnic foods with a vengeance. This is good news for the
corporate sector, given that the past few years have seen a perceptible shift towards the
branded sector at the cost of the unbranded segment.
1. Taste.
2. Quality.
3. Variation.
In the same order of significance we need to provide all three to our consumers.
Ours is a Company whose Product shall stand for something every Indian craves for. We are
entering a market already dominated by a number of branded and unbranded players.
Customers are extremely loyal to the Snacks they consume. So we thought about what would
make these customers come to us?
Consumers from Western India are the leading snack consumers, followed by the North.
While the domestic ethnic snack foods industry is hugely diverse, has easy access to
indigenous technology and involves low entry barriers, standardization of product quality and
backward links to testing facilities are at woefully low levels. Naturally, opportunity is
screaming from the rooftops.
The big question is whether branded players will edge past their unbranded counterparts?
Brand marketers say they will. Factors like hygiene and quality is steadily bringing about a
switch from unorganized to branded namkeens. One will not grow at the cost of the other
and that both categories will co-exist.
An aspect that leads to quick movement of ethnic snacks is the consumption convenience or
`consume anywhere-anytime' factor. It can be had with cocktails, at teatime, as props with
regular meals like breakfast or as starters with dinner.
6.4. Margins
Consumers are willing to pay a premium for convenience shopping. Thus, the relative share
of grocers dropped. Chemist outlets on the other hand, have been expanding their product
range to include high margin FMCG products. Panwallas are also emerging as full-fledged
consumer product outlets.
With the increasing number of retail outlets, the visibility of the products in the market
increases and so does its availability. We would try to make the best of it by tapping these so
that we can penetrate further into the market and also increase our sales.
Entire snacks being a mass product we would ideally want for our products to be virtually at
every single retail outlet. Competitors such as ITC and Frito lay who have a wide network of
distribution chain will have to be matched in order to give them a stiff competition.
Grocers, pan stores, General Stores, Food stores will be aggressively aimed at. More shelf
space and advertising on the shops will be sought to.
Advertisements in the form of both outdoor and print media so that the consumers are
informed about our product. Our outdoor campaign will be extensive and will be at all the
prime locations in metros towns and other places. They will also be put up at Trains, Stations,
Buses and Bus Stops and on the retail outlets itself. Print Ads will be published in leading
newspapers and magazines.
In India, today there are over 5 million retail outlets dispersed all over the country. Organized
retailing, which has been now gaining momentum, includes large super market chains/
shopping malls, department Stores and Food Store. While small chain stores called Apna
Bazaars and Sahakari Bhandaars, which offer products at reasonable prices-have been fairly
popular in the rural areas.
6.6.1. Advertising:
Ø We are going to give our advertisements in the form of both outdoor and print media
so that the consumers are informed about our product. Our outdoor campaign will be
extensive and will be at all the prime locations in metros towns and other places. They
will also be put up at Trains, Stations, Buses and Bus Stops and on the retail outlets
itself. Print Ads will be published in leading newspapers and magazines.
Ø Advertisement through hoardings, banner etc. Indian market is a young market so
efforts should be made to capture the youth spirit.
Ø Packaging would be designed & colorful enough so that it looks attractive specially to
the young crowd & it should be done properly with nitrogen gas & aluminum quoted
food graded plastic to avoid perishability.
Ø There will also be fliers, which would be distributed with newspapers and out side
retail outlets and railway stations.
Ø Our products would be available with the local baniyas and pan shops to reach out to
maximum people.
Recommendations:
ü Launch this product early to gain the first mover advantage.
ü Maintain the quality standards.
ü Timely feedback from the customer about the quality of the product.
ü Proper supply chain management so that the product reaches the end customers
easily.
ü Appropriate promotional strategies.
The potatoes are first thoroughly washed before peeling them with the help of a peeler. They
are fed to a peeler where high speed abrasive rotating discs remove the skin. Then these
potatoes are trimmed and put in brine water for 30-35 minutes to prevent browning.
Afterwards they are cut in the required sizes on slicing machine. These slices are blanched in
boiling water.
Then the blanched potatoes are placed on drying trays which are then put in the drying
machine. Temperature of dryer is maintained in the range of 140 to 150 oF . After drying, they
are fried in edible oil to make them crisp and brown.
Packaging –
The fried potato wafers are then kept on the sieve to remove excess of oil, cooled and other
ingredients like salts, spicy mixture is sprayed as per required taste. Cooled potato wafers are
then packed in polythene bag.
7.3. Proposed Potato Chips Supply Chain: Food quality and safety
issues
7.3.1. Processing and quality requirements
The quality parameters set in place through the chain are driven by the buyer requirements
and specific requirements for processing. Potatoes grown in India for traditional use have high
sugar content and fewer solids. Processing requires potatoes with no sugar content and high
solids (between 15 and 20 percent). Specific requirements are met by ensuring quality
compliance at every stage, research and development, farming, storing, processing, and
packaging.
As mentioned above, potatoes required for making chips, French fries and other fried
products must have low sugar content to avoid browning of the finished product. The sugar
content of potatoes is determined by the genotype and several pre- and post-harvest factors.
The major preharvest factors affecting sugar content are crop maturity, temperature during
growth, mineral nutrition and irrigation, while important post-harvest factors are mechanical
stresses and storage conditions. Each genotype requires an ideal pre- and post-harvest
treatment to maintain low sugar levels; any kind of stress results in sugar accumulations. As
most of the potatoes in India are used as cooking potatoes the most common variety grown
in West Bengal is Kufri Jyoti, another major variety is Kufri Chandramukhi. Chipsona I,
Chipsona II, Chipsona III, LR and Atlantic with low sugar and high solid contents have been
introduced for processing purposes.
The company will ensures the availability of inputs to farmers working in the area under
contract. The vendor in the region ensures that the farmers falling under his or her supervision
have all the required inputs at the right time. In West Bengal, the company advises on the use
of quality inputs. If the company provides inputs then the cost is deducted when potatoes are
purchased from farmers. Seed potatoes of specific varieties for processing are provided by
the company.
In order to produce a specific variety of potato and to enhance productivity the Company will
be very closely involved with its potato contract farmers. The company has employed a team
of agricultural graduates, who will work with the farmers to provide technical input and to
monitor the production of the farmers in their specified area. One technical expert deals with
approximately 100 farmers. The general practice in West Bengal is to grow the potato crop
after paddy. Early planting of potatoes leads to early harvesting of the produce, which fetches
a higher price. To produce potatoes early, farmers are recommended to go for short duration
paddy so that land is available for early potato cropping.
“Handle potatoes like eggs, not like stones” will be the message the company agronomists be
giving farmers. This statement conveys the care taken through the post-harvest management
process. Traditionally, jute bags will be used for packaging potatoes. Instead of jute bags, the
company has propagated the use of plastic bags for packaging as it ensures better storage.
At the company’s unloading dock, the potatoes will be mechanically graded for size. Potatoes
that are too small for processing are separated. There is also visual inspection for damaged
potatoes. Test for sugar content is undertaken by frying a small sample from this lot. Potatoes
with high starch content will turn red on frying. Sample tests are also undertaken for solid
content. Potatoes that do not meet the requirements are rejected.
7.3.7. Storage
Critical factors in successful storage include variety, methods of culture, harvest, field curing,
temperature and humidity control, storage and sprouting inhibition. Potatoes are stored at
12°C to control conversion of starch into sugar. At this temperature potatoes can be stored
up to four months. Potatoes are also treated to limit sprouting.
The selected produce is taken to the processing plant and is subjected to washing and peeling.
Peeled potatoes are subject to metal detection and inspection for physical damages and
discoloration. Following this, the potatoes are run through rotating slicers and are subjected
to deep frying, seasoning & packaging.
i) Mills will be used only after sifting to get rid of undesirable foreign particles.
ii) Before use every raw materials would be checked thoroughly in quality & weight,
iii) Chemicals & preservatives would be used in permissible limits.
iv) Process control at the time of mixing & extrusion, drying would be maintained in
terms of time, speed, and temperature PH and RH etc.
v) Proper drying parameters would be observed at the time of roasting
vi) The wafers shall be packed after proper cooling.
3. Toaster
For dehydration to maintain moisture level. Auto
4. Frying unit
For auto frying.
5. Coating Tumblers / Spice Mixer (Coating tumblers are specially designed
to apply seasoning to your bake or fry type product in a uniform manner)
6. Auto Packing Machine
(Nitrogen Filled System) for packing of extruded food products, capacity 15
gm to 50 gm. Complete with accessories.
7. Dehydration system
For converting raw vegetables into powder For processing of Potato,
Tomato, Chilies, Peas, Onions, Gingers etc. Capacity 100 Kg./lir. complete
with electrical.
Vibro Separator
Frying
Deoiling
Seasoning
Packing
Vibratory feeder with buffer hopper to feed raw material into frying system, for separating
fine extraneous material through sieving system. Hopper volume: 275 liters
Complete system consists of frying section and peddles, sub merger belt, top hood, takeout
belt, oil filter, heat exchanger. The flow of oil ensures a linear flow of oil, which is necessary
in order to have a uniform frying time for the entire product. Heat Exchanger It is coil type-
seamless stainless steel tubes fitted in ms shell, the oil is heated by hot air not direct flame in
coils which has an inlet system from one end and heated oil will be coming out from other
end and will go to the fryer. Whole burnt fuel used in this system that gives more than 55%
saving in fuel.
The conveyor receives pellets from fryer and transports it to further process. It allows the
product temperature to come to equilibrium and thus removing excess surface oil, belt speed
regulation by VFD. Entire construction is of stainless steel except for the standard parts. The
feeder receives fried pellets from takeout belt and feed to the flavoring drum the feeding
speed can be controlled by a VFD. A tray is also fitted on the top of the feeder where dry flavor
falls from the applicator.
Technical Specification of flavor applicator and drum Applicator motor: 1 HP 3 phase Drum
length: 1500 mm Drum diameter: 800 mm Drum motor: 1 HP 3 phase
The electrical control panel is hub of all starters, temperature control and variable frequency
drives for operation of equipment’s. Technical specification of control panel Supply voltage: -
415 volts, 50 Hz, 4 wire. Technical specification of pellet fryer Required space: 30 x 15 feet
Fuel: Diesel/Kerosene, Gas, Thrermic fluid or wood Material of construction: AISS-304 grade
stainless steel.
The main raw material for the project is potato, corn & rice girts. India is a major producer of
potato with a yearly production of around 53 million tonnes and rank Second in global potato
production after China. Uttar Pradesh is the largest producer of potatoes in India with about
150 lac tons production in 2018-19.The other major producers are West Bengal, Bihar,
Punjab, MP, Gujarat and Assam. Uttar Pradesh, West Bengal and Bihar account for more than
80% of total production.
There are two major cropping seasons in India – kharif, during the south-west
monsoon(June/July through September October), when agricultural production takes place
both in rain fed areas and irrigated land. The other season is Rabi, during the winter, when
agricultural activities take place only in irrigated areas. About 80% of the crop is raised during
winter season.
With phenomenal increase in potato production in the last 10 years, recurring gluts have
become common in the country. Prices crash drastically during harvesting months leading to
panic sale by farmers and in turn leading to monetary losses. Potato growers and traders
hoard the commodity after harvesting to facilitate uniform availability of the crop throughout
the year in the market and to realize better prices. Potato can be kept in cold storages without
spoiling for 5-6 months.
Potato varieties suited to the country's climate - hot summers and short winters - are
grown on the Indo-Gangetic plain during the short winter days from October to March,
while some year-round production takes place in relatively high altitude areas in the
south.
10.4. Station & variety wise area (ha) and production (qtls) in
Conventional system 2017-18 (Plains) in West Bengal
Stage-I Stage-II Stage-III Stage-IV Total
Variety
Area Production Area Production Area Production Area Production Area Production
Kufri
0.11 5.95 0.22 32.00 1.11 114.50 2.65 287.40 4.09 439.85
Chandramukhi
Kufri Jyoti 0.14 11.15 0.44 50.00 1.48 206.00 5.63 802.00 7.69 1069.15
Kufri Sindhuri 0.19 7.83 0.50 78.00 2.25 392.00 11.18 1296.50 14.12 1774.33
Kufri Lauvkar 0.09 6.40 0.22 25.40 0.38 47.00 1.83 251.50 2.52 330.3
Kufri Chipsona-I 0.05 6.52 0.39 56.00 0.92 176.50 3.63 730.62 4.99 969.64
Kufri Chipsona-3 0.07 3.27 0.36 56.00 0.88 64.00 1.92 292.25 3.23 415.52
Kufri Surya 0.08 8.15 0.19 30.40 - - - - 0.27 38.55
Total 0.73 49.27 2.32 327.80 7.02 1000.00 26.84 3660.27 36.91 5037.34
Bengal is reportedly the largest supplier of potatoes to Frito-Lay's India operations. According
to West Bengal Cold Storage Association (WBCSA), the company nearly doubled its
procurement from the State to 120,000 tonnes in 2018-19.
The major chips variety potato are available in Burdwan, Birbhum, Hooghly, Bankura and
Midnapore (West) districts in West Bengal. “Owing to good growth, our potato requirement
has been growing rapidly.
Quality is one of important aspects in food processing industry to make the food popularize.
So quality control system should be developed in food processing unit to manufacture best
quality products. In the said unit quality control system should be consisting of checking of
raw materials, process control and ultimately checking of finished goods.
ü The color is compared to charts that show acceptable chip colors across the processed
food industry norms
ü The quality inspectors should also check the chips for salt, seasoning, moisture, color,
and overall flavor.
The color is compared to charts that show acceptable chip colors across the processed food
industry norms .
The quality inspectors should also check the chips for salt, seasoning, moisture, color, and
overall flavor.
% Daily Value *
Total Fat 3.1g 4%
Saturated Fat 0.5g 2%
Sodium 288mg 13 %
Total Carbohydrate 80g 29 %
Dietary Fiber 2.9g 10 %
Sugar 0.7g
Protein 9.7g 19 %
Vitamin D 0.00mcg 0%
Calcium 9.00mg 1%
Iron 1.87mg 10 %
Potassium 327mg 7%
* The % Daily Value (DV) tells you how much a nutrient in a serving of food contribute to
a daily diet. 2,000 calories a day is used for general nutrition advice.
The project will be located at Panagarh Industrial Park, Panagarh Industrial Park at Panagarh,
West Burdwan. West Bengal Industrial Development Corporation Limited (WBIDC) is setting
up a modern Industrial Park over 1458 acres at Panagarh in Burdwan district. Panagarh-Kanksa
belt is a favorable destination for industries due to the availability of industrial infrastructure
and climate. Recently Panagarh is emerging as one of the finest places of technical education.
Already 2 major engineering and management Institutes (DIATM & AIEM) are running under
the belt of Panagarh. Both the Indian Army and Air Force have their establishment at
Panagarh. An airport is also located here which is extensively used by Indian Air Force. It is
well connected with road and railway. Sufficient power is available for the prospective
industries at the park. The Industrial Park is located on NH 2 and is about 150 Kms away from
Kolkata with composite facilities for food processing industries.
• The industrial park is spread over 1458 acres of land under Ausgram-II, Galsi-I and
Kanksa block.
• The project site is well connected by roads with Kolkata, the state's capital, located
approximately 150 km in south-east direction.
• The site is bounded by National Highway No: 2 connecting it to the Delhi. Site is also
connected with NH - 34 and Panagarh-Moregram State Highway.
• The park is well connected by railways. The nearest railway station is Panagarah at 0.8
Km from site.
• The park is very close to the Durgapur industrial zone.
• Nearest Airport - Kazi Najril Islam Airport.
• DVC canal is passing through the site.
• The anchor unit of the park M/s. Matix Fertilizers & Chemicals Ltd. has set up their unit
in the park in approximately 500 acres of land.
• All prospective investors are entitled to incentives available as per West Bengal
Incentive Scheme.
Roads: All the plots within the park will be connected through arterial roads of 30 m, 24 m
and internal roads of 18 m, 15 m width. The construction of road is under progress.
Drainage: Construction of drainage along both sides of arterial and internal roads in progress.
Power Sub-stations: WBIDC has handed over two plots to WBSEDCL for setting up of 132 KV
Substations (One Substation is operational and other in process) and one plot to WBSETCL for
setting up of 220/132 KV Substation. Power tariff will be as per the existing tariff plans.
Water supply: PHE Dt. Has been entrusted for construction of WTP and Pipeline for Supply of
Industrial and potable water from Durgapur Barrage. It will require 3 years to complete the
work. Till that time Ground water can be used with the approval of appropriate authority till
surface water is made available.
Other facilities: WBIDC has already provided the Street Lighting Facility to the entire Park.
.Now, WBIDC is in process of construction of Truck Terminal (3 nos.) , CFB Building, Fuel
Station etc.
A number of big industries have come up in the Panagarh Industrial Park. Some well-known
companies like M/s Matix Fertilizers & Chemicals Ltd.., M/s. H&R Johnson (India), M/s. Emami
Cements Limited, HPCL, Globus Spirit Ltd., IOCL etc have already set up their manufacturing
units in the park.
Briny Food products are planning to acquired 2 acre lease hold plot from WBIDC for the
project. Power and water will be available from the facilities created for the Food Park.
A two storied RCC building or a PEB shed will be constructed with an area of 60000 sq.ft to
house the plant facilities and storage raw materials, process stocks and finished goods. As per
plant layout, main plant and machinery will be housed in the ground floor and auxiliary
facilities will be located on the first floor. The company has engaged experienced civil
contractor with good track record for civil engineering and site construction.
Requirement of water will be met from the industrial Park Supply available to the site.
Requirement of nitrogen gas will be met from the Nitrogen generator installed by the
Company
The effluent from various sources will be accumulated and drained into a common
Equalization Tank. The effluent enters the Inlet Channel where Bar screens will be provided
to screen out the larger, non-biodegradable suspended solids. These screenings will be
periodically disposed of into the Sludge Drying Beds. From the Inlet channel the raw effluent
will flow into an underground Equalization Tank where it will be retained for some time before
being pumped to the Aeration Tank. An Effluent Transfer Pump of appropriate capacity will
be used for the purpose. There will be provision of aeration in the Equalization Tank to
maintain homogeneity and prevent formation of septic conditions.
In view of the high organic load of the effluent Dual- stage Aeration has been considered as
the mode of biological treatment. The effluent first enters the Aeration Tank -1 (AT-1). In the
Aeration Tank biological oxidation of dissolved and fine suspended organic matter takes place
in the presence of oxygen which will result in the lowering of BOD (Biological Oxygen demand)
and COD (Chemical Oxygen Demand). Air Blowers with diffuser grid network will be employed
to supply adequate air in the Aeration tank. As need be bacterial culture and food
supplements will be added.
The ETP has been designed based on the following Raw Effluent Quality. We presume this
composition will remain fairly constant throughout the year and any variation in the
composition will reflect on the quality of the output of the plant.
The Aeration Tank-1 will be followed by Secondary Settling Tank -1 (SST -1) where the
suspended solid particles and the excess biomass settles out as sludge by virtue of gravity.
Square tube modules will be provided for faster settling. From the SST-1 the supernatant then
flows into the Aeration Tank -2 (AT-2) followed by Secondary Settling Tank -2(SST-2).
A portion of the settled sludge, known as ‘Activated Sludge’, from the SST -1 will be
recirculated back to AT -1 and similarly from SST -2 to AT-2 for seeding purposes and to
maintain the desired MLSS levels. Sludge Recirculation Pumps of suitable capacities will be
used for the purpose.
The treated effluent from SST-2 will then be collected in a Chlorine Contact Chamber. Here
Hypochlorite will be dosed for the purpose of disinfection with the aid of a dosing pump. After
disinfection the treated effluent can be safely discharged to drains.
The screenings accumulated in the Bar Screen Chamber, along with the excess settled sludge
from both the Secondary Settling Tanks tank will be pumped out to Sludge Holding Tank from
where it will be pumped to Filter Press for dewatering. The filtrate will be discharged to drains
whereas the sludge cakes can either be used as manure after proper conditioning or must be
disposed off in secured landfills. Alternatively, the sludge can be taken to Sludge Drying Beds
for sun drying and dewatering.
Design Basis:
The proposed WTP has been designed based on the following Raw Water Quality. We
presume this composition will remain fairly constant throughout the year and any variation in
the composition will reflect on the quality of the output of the plant.
Project implementation will take a period of 10 months. Break-up of the activities and relative time for each activity is shown below:
Sr.
Item Month-1 Month-2 Month-3 Month-4 Month-5 Month-6 Month-7 Month-8 Month-9 Month-10
No
W-1 W-2 W-3 W-4 W-1 W-2 W-3 W-4 W-1 W-2 W-3 W-4 W-1 W-2 W-3 W-4 W-1 W-2 W-3 W-4 W-1 W-2 W-3 W-4 W-1 W-2 W-3 W-4 W-1 W-2 W-3 W-4 W-1 W-2 W-3 W-4 W-1 W-2 W-3 W-4
3 Building Construction X X X X X X X X X X X X X X X X X X X X
5 Electrification X X X X X X X X
7 Manpower recruitment X X X X X X X X X X X X
10 Trial production X X X
11 Commercial production X
‹#›
IN-COMMERCIAL -CONFIDENCE
Briny Food Products
60
60
Briny Food Products
• The unit will work for 300 days per annum on 25 days per month basis.
• The Unit will run one shift (8hrs) basis for first, 2nd year as 2 shift and from 3rd year
onwards will run three shift basis.
• The unit can achieve 1st year on 60%, 2nd year on 70% and 3rd Year onwards on 80%
capacity utilization during the operation.
• The wages for workers are taken as per prevailing rates in this type of industry.
The raw material prices have taken as per current market price and as follows in the following
table:
ITEM RATE PER KG (RS.)
Raw Potato 12
Edible oil 75
Seasoning for potato Chips 200
Raw Pallet 40
Seasoning for pallet fried snacks 180
Corn Girts 25
Flexible laminate as primary packing material 220
Carton Cost as secondary packaging for Potato Chips 26
Carton Cost as secondary packaging for Pallet fried snacks 30
Carton Cost as secondary packaging for Extruded snacks 30
Total
A.3 BOUNDARY WALL RMT Cost/RMT Cost Cost
Wire fencing with pre cast RCC
piller & Slab 400 0.025 10.00 10.00
Total
A.4 MAIN GATE NO RMT Cost/RMT Cost Cost
One Main Gate of MS Sheets with
Freight 7.12
GST 65.35
Freight 3.29
GST 20.94
Freight 2.21
GST 14.06
Freight 5.59
GST 3.73
Freight 2.35
GST 9.56
Sl.
No. Items Amount
1 Office Furniture & Equipment’s 5.00
2 AC machine for office area (5 nos.) 2.00
4 Overhead and underground water tank 2.50
5 Firefighting equipment’s 1.50
6 Pollution & pest control devices 1.50
SUB TOTAL 12.50
Preoperative Expenses
1 Establishment 1.50
2 Travelling Expenses 0.50
3 Start-up expenses 4.00
4 Interest on term loan during construction 20.85
5 Cost of Insurance @1% of fixed assets 10.41
6 Stamp duty and legal expenses 5.00
7 Miscellaneous Expenses 2.00
SUB TOTAL 48.76
0 to 2 2 to 4 4 to 6
1 Disbursement of
Loan 200.00 200.00 390.00 790.00
2 Cumulative Loan
200.00 400.00 790.00
3 Interest Payable
3.00 6.00 11.85 20.85
MEANS OF FINANCE
PARTICULARS % AMOUNT
A BLOCK CAPITAL 1,053.12
i) Promoter Contribution 263.28
ii) Long Term loan from Bank 789.84
iii Unsecured Loan 317.55
Proposed Schedule
Draw-down Repayment of Interest Payment
Principal (@9.0% per anum)
Year Amount Year Amount Year Amount
1st 789.84 1st 1st
Year 71.09
2nd 2nd
131.64 59.24
3rd 3rd
131.64 47.39
4th 4th
131.64 35.54
5th 5th
131.64 23.70
6th 6th
131.64 11.85
7th 7th
131.64 -
5 SALES REVENUE
Amount of Potato Chips
Production (Tons/anum) 432 1,008 1,728 1,728 1,944 1,944 2,160
Amount of Pallet Fried
Snacks Production
(Tons/anum) 432 1,008 1,728 1,728 1,944 1,944 2,160
Amount of Extruded Puff
Production (Tons Per
anum) 288 672 1,152 1,152 1,296 1,296 1,440
TOTAL PRODUCTION
(TONS/ANUM) 1,152 2,688 4,608 4,608 5,184 5,184 5,760
FOR Factory Price of Potato
Chips per TON 2.12 2.18 2.24 2.31 2.38 2.45 2.53
FOR Factory Price of Pallet
fried Snacks per TON 1.72 1.77 1.82 1.88 1.93 1.99 2.05
FOR Factory Price of
Extruded product per TON 1.53 1.57 1.62 1.67 1.72 1.77 1.82
Sales revenue for Potato
Chips per Anum 913.85 2,196.28 3,878.00 3,994.34 4,628.44 4,767.29 5,455.90
Sales revenue for pallet
fried snacks per Anum 742.50 1,784.48 3,150.87 3,245.40 3,760.61 3,873.42 4,432.92
Sales revenue for extruded
snacks per Anum 440.00 1,057.47 1,867.18 1,923.20 2,228.51 2,295.36 2,626.92
TOTAL SALES REVENUE 2096.35 5038.22 8896.05 9162.94 10617.55 10936.08 12515.73
COST OF PRODUCTION
Cost of Raw Potato per
anum (Rs. In lacs) 196.99 473.44 835.96 861.03 997.72 1,027.65 1,176.09
Cost of Edible Oil per anum
POTATO CHIPS
anum (Rs. In lacs) 120.96 290.71 513.31 528.71 612.64 631.02 722.16
Cost of Edible Oil per anum
(Rs. In lacs/anum) 90.72 218.03 384.98 396.53 459.48 473.26 541.62
Cost of Seasoning per
anum (Rs. in Lac) 93.31 224.26 395.98 407.86 472.61 486.78 557.10
Total Cost of Production
for Potato Chips per anum
(Rs. in Lac) 304.99 733.00 1294.26 1333.09 1544.72 1591.06 1820.88
anum (Rs. In lacs) 57.60 138.43 244.43 251.76 291.73 300.48 343.89
Cost of Edible Oil per anum
(Rs. In lacs/anum) 38.88 93.44 164.99 169.94 196.92 202.83 232.12
Cost of Seasoning per
anum (Rs. in Lac) 65.66 157.81 278.65 287.01 332.57 342.55 392.03
Total Cost of Production
for Potato Chips per anum
(Rs. in Lac) 162.14 389.69 688.07 708.72 821.23 845.86 968.04
PACKAGING COST
Laminate Cost per Anum
(Rs in lacs) 488.78 1,308.87 2,309.60 2,377.80 2,754.54 2,836.96 3,247.12
Cartoon cost
TOTAL CARTON COST PER
ANUM 141.60 377.96 666.79 686.32 794.87 818.46 936.56
TOTAL PACKAGING
MATERIAL COST PER
ANUM (Rs. In lacs) 630.38 1686.83 2976.39 3064.12 3549.41 3655.42 4183.68
COST OF RAW MATERIALS
COST PER ANUM (Rs. In
lacs) 863.93 2076.31 3666.16 3776.15 4375.61 4506.88 5157.88
FUEL COST PER ANUM 69.12 161.28 276.48 276.48 311.04 311.04 345.60
Cost of Electricity per
anum 17.45 100.76 177.92 183.26 212.35 218.72 250.31
Cost of Consumables 10.48 25.19 44.48 45.81 53.09 54.68 62.58
Salary & Wages 101.28 212.69 223.32 202.56 212.69 223.32 234.49
FACTORY OVERHEAD
Repair & Maintenance
@1% of Fixed Assets with
10% rise per year 10.53 11.58 12.74 14.02 15.42 16.96 18.66
i) Cost of Insurance @1% of
Fixed Assets 10.53 11.06 11.61 12.19 12.80 13.44 14.11
ii) Miscellaneous Overhead
@10% of above 2.11 2.26 2.44 2.62 2.82 3.04 3.28
iii) Total Factory Overhead 23.17 24.91 26.79 28.83 31.04 33.44 36.05
COST OF PRODUCTION 1085.43 2601.14 4415.16 4513.09 5195.82 5348.09 6086.90
GOODS
K OUTSTANDING DEBTORS 15.00 75.00 87.35 65.51 21.84 8.00 6.00 2.00 7.00 5.25 1.75 9.00 6.75 2.25 9.00 6.75 2.25 12.00 9.00 3.00 12.00 9.00 3.00
TOTAL 251.10 174.28 76.82 450.70 278.00 172.71 730.19 485.39 244.80 750.15 501.20 248.96 856.70 579.62 277.08 884.16 599.03 285.13 1000.01 684.27 315.74
‹#›
IN-COMMERCIAL -CONFIDENCE
Briny Food Products
78
78
Briny Food Products
3
TOTAL 1053.12 146.54
SL. PARTICULAR RATE 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR 7TH YEAR
NO. S (%) DEPRE
CIABLE DEP WDV DEP WDV DEP WDV DEP WDV DEP WDV DEP WDV DEP WDV
COST
1 Building & 5.00 216.00 10.80 205.20 10.26 194.94 9.75 185.19 9.26 175.93 8.80 167.14 8.36 158.78 7.94 150.84
Civil works
2 Plant & 15.00 824.62 123.69 700.93 105.14 595.79 89.37 506.42 75.96 430.46 64.57 365.89 54.88 311.00 46.65 264.35
Equipment’s
3 Furniture, 10.00 12.50 1.25 11.25 1.13 10.13 1.01 9.11 0.91 8.20 0.82 7.38 0.74 6.64 0.66 5.98
Fixtures &
Misc Fixed
Assets
TOTAL 1053.12 135.74 917.38 116.52 800.85 100.13 700.73 86.13 614.59 74.19 540.41 63.98 476.43 55.25 421.17
PARTICULARS
SL.
NO. 1st yr 2nd yr 3rd yr 4th yr 5th yr 6th yr 7th yr
1 PROFIT BEFORE TAX 83.19 480.35 1259.05 1346.44 1652.65 1730.56 2059.09
Add DEPRECIATION
2 (SLM) 146.54 146.54 146.54 146.54 146.54 146.54 146.54
Less DEPRECIATION
3 (DBM) 135.74 116.52 100.13 86.13 74.19 63.98 55.25
Basic Tax @ 30% 28.20 153.11 391.64 422.06 517.50 543.94 645.11
B USES OF FUNDS
I) Capital expenditure 1053.12 0.00 0.00 0.00 0.00 0.00 0.00 0.00
for project
II) Increase in current 251.10 199.60 279.49 19.96 106.55 27.46 115.85
assets
III) Decrease in Term 0
loan 131.64 131.64 131.64 131.64 131.64 131.64
IV) Interest on long -
term loan 71.09 59.24 47.39 35.54 23.70 11.85
V) Interest on short
term loan 15.69 15.69 15.69 31.37 31.37 31.37 31.37
VI) Taxation
31.58 171.48 438.64 472.70 579.60 609.21 722.53
VII) Dividend 17.42 34.85 52.27 104.55 139.40 139.40 139.40
TOTAL OUTFLOW
(Rs. In Lakh) 1053.12 386.87 612.50 965.12 795.76 1012.25 950.93 1140.78
Opening Balance 0 317.55 489.98 751.38 1490.51 2216.69 3095.38 4012.17
Net Surplus/Deficit
(A-B) 317.55 172.43 261.40 739.13 726.18 878.69 916.79 1123.27
Closing Balance 317.55 489.98 751.38 1490.51 2216.69 3095.38 4012.17 5135.44
VARIABLE COST
Cost of Production (90%
variable) 1,544.23 3,859.17 6,652.39 6,819.49 7,870.71 8,103.15 9,243.53
Selling & Admin
Overhead (50%
variable) 36.17 37.98 39.88 41.87 43.96 46.16 48.47
B TOTAL VARIABLE COST
1,580.40 3,897.15 6,692.27 6,861.36 7,914.67 8,149.31 9,292.00
FIXED COST
Cost of Production (10%
Fixed) 171.58 428.80 739.15 757.72 874.52 900.35 1,027.06
Selling & Admin
Overhead (50% Fixed) 36.17 37.98 39.88 41.87 43.96 46.16 48.47
Interest on Term loan
(100% Fixed) 71.09 59.24 47.39 35.54 23.70 11.85 -
Interest on Cash credit
loan (100% Fixed) 15.69 15.69 15.69 31.37 31.37 31.37 31.37
C TOTAL FIXED COST
294.52 541.70 842.11 866.50 973.55 989.73 1,106.90
D CONTRIBUTION (Sales -
V. Cost)= (A-B) 515.95 1,141.07 2,203.79 2,301.58 2,702.88 2,786.77 3,223.74
F BREAK EVEN SALES (Rs.
In Lakhs) 1,196.66 2,391.77 3,399.34 3,449.68 3,824.33 3,883.98 4,297.38
H BEP (As % of Sales) 57.08 47.47 38.21 37.65 36.02 35.52 34.34
AVERAGE BEP 40.90
E PROFIT VOLUME RATIO
((D/A)*100)) 24.61 22.65 24.77 25.12 25.46 25.48 25.76
G MARGIN OF SAFETY
899.69 2,646.44 5,496.72 5,713.25 6,793.22 7,052.10 8,218.35
RM,Pkg &
100% 3666.16 RM,Pkg & Stores 0% 0.00
Stores
PM 100% 3666.16 PM 0%
consumable
50% 1.74 consumable spares 50% 1.74
spares
power & fuels 30% 8.15 power & fuels 70% 19.01
direct labour 100% 223.32 direct labour 0% 0.00
other mfg exp 0% 26.79 other mfg exp 0% 0.00
depreciation 0% 0.00 depreciation 100% 75.84
other cost 30% 0.75 other cost 70% 1.75
Admn &
30% 13.51 Admn & selling 70% 31.52
selling
Finance cost 0% 63.08 Finance cost 100% 63.29
7669.66 193.15
(C.) Contribution(A -B) 1226.39
Add Interest
Net profit Rs in on term Add P&P(Rs Total cash
Year lacs Add depreciation(Rs lacs) loan(Rs lacs) lacs) Inflow(Rs lacs)
EXPENSES
Cost of Materials Consumed
1,727.86 4,152.61 7,332.33 7,552.30 8,751.23 9,013.76 10,315.75
Purchase of Stock in Trade
- - - - - - -
Changes in Inventories of Finished
Goods, Work-in-Progress and
Stock-in-Trade 22.20 53.36 94.22 97.05 112.46 115.83 132.56
Employee Benefits Expense
101.28 212.69 223.32 202.56 212.69 223.32 234.49
Finance Costs
86.77 74.92 63.08 66.91 55.07 43.22 31.37
Depreciation and Amortisation
Expense 135.74 116.52 100.13 86.13 74.19 63.98 55.25
Other Expenses
195.06 390.59 607.92 620.62 697.95 712.70 793.98
Total Expenses (II)
2,268.91 5,000.71 8,421.00 8,625.58 9,903.57 10,172.82 11,563.40
ii Export Sales - - - - - - -
Other Operating
iii Income - - - - - - -
a. Imported - - - - - - -
a. Imported - - - - - - -
a. Imported - - - - - - -
iii Power Fuel 86.57 262.04 454.40 459.74 523.39 529.76 595.91
Direct Labour (Factory
iv Wages & Salaries) 101.28 212.69 223.32 202.56 212.69 223.32 234.49
Other manufacturing
v Expenses 23.17 24.91 26.79 28.83 31.04 33.44 36.05
vii Other cost 2.50 2.50 2.50 2.50 2.50 2.50 2.50
Sub total (i to vii) 2,087.60 4,796.47 8,183.95 8,377.88 9,648.12 9,921.45 11,302.53
viii Change in WIP 2,092.34 4,807.84 8,204.04 8,398.57 9,672.10 9,946.14 11,330.80
xiii Cost of Sales 72.34 75.95 79.75 83.74 87.92 92.32 96.94
Administrative , selling & Distribtion
6 expenses 72.34 2,182.14 4,925.78 8,357.92 8,558.66 9,848.50 10,129.60
8 Operating Profit Before Interest (3-7) (85.80) 86.77 74.92 63.08 66.91 55.07 43.22
9 Interest (Finance Cost) 86.77 (172.57) 37.51 475.06 537.36 713.99 763.26
12 Profit Before Tax/Loss (10+11) (172.57) - 11.59 146.79 166.04 220.62 235.85
14 Net profit /Loss (12-13) (172.57) 17.42 34.85 52.27 104.55 139.40 139.40
Less : Dividend paid to
15 a Share Holders (189.99) (8.93) 275.99 266.77 353.96 388.01 518.66
16 Retained Profit (14-15) (188.31) 135.74 116.52 100.13 86.13 74.19 63.98
Add
Depreciation 2.50 2.50 2.50 2.50 2.50 2.50 2.50
Add Prel.
Expenses (51.75) 110.10 378.62 355.40 430.65 454.49 576.42
GROSS CASH
17 ACCRUAL - 131.64 131.64 131.64 131.64 131.64 131.64
Less
Instalment
Repayment
on Term loan (51.75) 110.10 378.62 355.40 430.65 454.49 576.42
NET CASH
18 ACCRUAL (51.75) 110.10 378.62 355.40 430.65 454.49 576.42
CUMULATIVE
CASH
19 ACCRUAL - - - - - - -
EQUITY AND
LIABILITIES
Shareholders’ Fund
Share Capital
580.83 604.07 634.27 634.27 702.32 793.00 888.36
Reserves and
Surplus (189.99) (8.93) 275.99 266.77 353.96 388.01 518.66
Equity Share
Warrants
Money Received
against share
warrants
Share Warrants
Non Current
Liabilities
Long Term -
Borrowings 789.84 658.20 526.56 394.92 263.28 131.64
Current Liabilities
Short Term
Borrowings 174.28 174.28 174.28 174.28 174.28 174.28 174.28
Trade Payables
140.00 90.00 101.80 113.84 126.11 138.63 141.41
Other Current
Liabilities 97.39 251.77 396.43 448.34 537.07 544.96 592.48
Short Term - - - - - - -
Provisions
TOTAL
1,592.34 1,769.38 2,109.33 2,032.40 2,157.03 2,170.54 2,315.19
Non Current
Investments
Deferred Tax
Assets (Net)
Long Term Loans
and Advances
Other Non
Current Assets 241.69 435.04 815.00 781.38 805.22 827.59 826.94
Current Assets
Inventories
164.25 180.66 198.71 218.56 240.39 264.41 290.83
Trade Receivables
54.50 58.43 61.69 61.88 196.92 210.07 364.85
Cash and Bank
Balances 25.00 25.63 26.91 27.44 27.99 28.55 29.12
Short Term Loans
and Advances
Other Current
Assets 159.83 248.78 286.30 308.55 326.10 343.49 362.27
- - - - -- -
TOTAL 1,534.88
1,592.35 1,769.39 2,109.33 2,032.40 2,157.03 2,170.54
CURRENT LIABILITIES
i Investment in Subsidiary -
Companies/Affiliates 20.00 23.00 26.45 30.42 34.98 40.23
Others - - - - - - -
ii Advance to Suppliers of Capital Goods & - - - -
Contractors 70.00 5.00 10.00
iii Deffered receivables(maturity -
exceeding1 year) 5.94 30.73 205.50 197.97 196.12 186.50
iv Others - - - - - - -
iv(a) Security deposit with WBSEDCL
10.00 10.00 10.00 10.00 10.00 10.00 10.00
iv(b) Receivable over 6 months
215.69 442.12 792.55 575.35 732.52 765.33 923.84
iv(c) Security deposit with Sales Tax
Authority 0.50 0.05 0.05 0.15 0.15 0.15 0.15
iv(d) Refund receivable against excess -
payment of Income Tax 10.36 10.36 25.81 31.08 31.08 31.08
43 Total Assets(34+37+41+42)
1,592.35 1,769.39 2,109.33 2,032.40 2,157.03 2,170.54 2,315.19
44 Tangible Net worth(24-42)
361.14 575.14 890.26 881.04 1,036.29 1,161.02 1,387.03
45 Net working Capital(34-10)
(62.58) (60.98) (160.59) (181.90) (242.97) (221.43) (225.94)
46 Current Ratio(34/10)
84.80 88.18 76.12 75.30 70.99 74.19 75.12
47 Total outside Liabilities/Tangible Net
Worth(18/44) 332.70 204.17 134.69 128.41 106.22 85.23 65.48
48 Total Term Liabilities/Tangible Net
Worth(17/44) 218.71 114.44 59.15 44.82 25.41 11.34 -
A.18 Conclusion
The sensitivity analysis shows that the project has the capability to withstand some adverse
variance in selling price and raw material price from the assumptions underlying the financial
projections.
The project is considered technically feasible and economically viable subject to underlying
assumptions and provides adequate safety to the lenders