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Essential Oil Processing Unit Establishment Plan For Tinjure Herbs Cooperative, Tehrathum
Essential Oil Processing Unit Establishment Plan For Tinjure Herbs Cooperative, Tehrathum
Essential Oil Processing Unit Establishment Plan For Tinjure Herbs Cooperative, Tehrathum
Establishment Plan
Prepared for
Tinjure Herbs Cooperative Society
Limited
Ambung -2, Tehrathum
2062 (2005)
Prepared by
Khilendra Gurung
&
Kabita Adhikari
September 2005
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PROJECT HIGHLIGHTS
(At 50% capacity utilization)
4. Products: Essential oils (Artemisia oil, Calamus oil, Ginger oil and
Amomum oil)
6. Target Market: Essential oil exporters, essential oil traders, essential oil
based herbal care products manufacturing
companies/industries, cosmetics/toiletries products
manufacturing companies/industries in Kathmandu
9. Manpower: 7 persons
18. Net Present Value: (Rs 890,997/-) at 20% discount rate over 10 years
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CONTENTS
1. INTRODUCTION 1
1.1 Background 1
1.2 Present Situation 1
1.2.1 Raw material supply 1
1.2.2 Resource management and its sustainability 2
1.2.3 Essential Oil Enterprise 2
1.3 Tinjure Herbs Cooperative Society Limited 3
1.4 Local Beneficiaries and Benefits 3
3. MARKETING MANAGEMENT 4
3.1 Existing Market 4
3.2 Marketing Strategy 5
3.2.1 Products 5
3.2.2 Price 6
3.2.3 Distribution 6
3.2.4 Promotion 6
4. TECHNOLOGY/PRODUCTION 7
4.1 Cooperative Site 7
4.2 Production Capacity 7
4.3 Requirements for Production 7
4.3.1 Building/Store 7
4.3.2 Machinery, Equipments and Accessories 7
4.3.3 Other Infrastructure 8
4.3.4 Raw Material 8
Transportation and Storage 8
4.3.5 Supportive Materials 9
4.3.6 Fuel/ Energy 9
4.4 Product Specification and Quality Control 9
4.5 Extraction Process 10
Extraction Method of Essential Oil 10
Steam Distillation Process 10
5. MANAGEMENT 11
5.1 Ownership and Organizational Structure 11
5.2 Management Team 11
5.2.1 Management Board 11
5.2.2 Manager 12
5.2.3 Technicians 12
5.2.4 Labours and Office Assistant 12
5.3 Remuneration 13
5.4 Supervision, Monitoring and Evaluation 13
5.5 Other Stakeholders 13
5.5.1 Collectors/Suppliers 13
5.5.2 Forest User Groups 13
5.5.3 Traders 14
5.5.4 Other Firms 14
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5.5.5 Funding Institutions 14
5.5.6 Assisting and Regulatory Institutions 14
8. PLAN OF OPERATION 22
9. CONCLUSION 22
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1. INTRODUCTION
1.1 Background
Tehrathum district is situated in the high hills of the eastern part of Nepal. It is
surrounded by Taplejung in the east, Dhankuta in the west, Sankhuwasabha in the north
and Pachthar in the south. The district is remote and poor in terms of infrastructure
development and economic conditions of the people living in the area. However, it is rich
in renewable natural resources. Non Timber Forest Products (NTFPs) are important
resources of the district, whose sustainable utilization could play crucial role in the
economic development of the region. Tehrathum harbors many NTFPs but very few
enterprises utilize them to generate income for the poorest people of the district.
Considering the ecological, social and economic development of the region, an essential
oil distillation enterprise has been chosen as it ranked top among the products evaluated
in the feasibility study with the local communities. The main reasons for selecting the
essential oil distillation enterprise are as follows:
¾ Large collection base and potential to harvest commercial quantities on a sustainable
basis
¾ High demand for the product and accessible in established markets.
¾ Viable technology for the enterprise.
¾ People are interested and able to run the enterprise.
¾ Resource management system can be institutionalized.
¾ Low cost involvement for the enterprise development and high employment
generation through the enterprise.
¾ Fair returns to the capital and the labor involved in the enterprise.
¾ Supportive policy for the resource management and commercialization of the
product.
¾ A large number of people can participate in the enterprise activities.
¾ A single community can sustain the enterprise in terms of raw material and
manpower supply. It makes it is easy to manage the enterprise and less complicated in
the distribution of benefits to the people.
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VDCs. Aduwa and Alaichi are cultivated in large scales in the district by the local
community. They can be easily available as stocks in the warehouses located in Jirikhimti
bazar. Particularly, Ambung and its adjoining VDCs are rich in terms of resource stocks.
It has thousands of hectares of lands (marginal lands, forest lands and cultivated lands)
where the raw materials are abundantly found. The participatory resource assessment
with local communities revealed that the sustainable yield of Titepati, Bojho, Aduwa and
Alaichi in the areas is about 10 ton, 2 ton, 20 ton and 200 ton respectively in the
collection areas. Based on this rough estimation, the area can feed such enterprise that
would produce Artemisia oil 500 kg, Calamus oil 250 kg, Ginger oil 1,000 kg and
Amomum oil 20,000 kg annually. People of the area generally collect Titepati in May-
June, August; Bojho in March-April, August-September; Aduwa in March-May and
Alaichi in September-October of the year. The cultivation and collection of Alaichi and
Aduwa in the area started since three decades. However, the commercial collection of
Titepati and Bojho has not been started yet.
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The new processing unit is expected to get support and coordination from the district
forest office, donor agencies working in the district, local NGOs/CBOs working in the
field of natural resources and the local community.
The Cardamom oil that is supposed to produce by this new unit will be the first in Nepal.
However, Artemisia oil, Calamus oil and Ginger oil are produced by various
cooperatives/ industries in the other districts. Therefore, the unit will have to overcome
the marketing challenge of these essential oils. Nevertheless, the unit is committed to
market these products by forming the network with the essential oils exporters of Nepal.
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2. GOALS AND OBJECTIVES
The main goal of the cooperative is to generate income for shareholders of the
cooperative and provide incentives to local people to conserve and manage the resources
in a sustainable way. To achieve this goal, the cooperative has set the following
objectives:
¾ to generate profit to sustain the enterprise, provide benefits to shareholders and the
community, and create funds for resource conservation;
¾ to generate income to local people by linking markets for collected NTFPs;
¾ to generate employment for the local people and transfer entrepreneurship skills to the
local community;
¾ to provide royalties and strengthen the forest user groups for management of forests;
¾ to provide conservation education, training and other inputs for development of the
resource.
The cooperative has also established the following financial goals:
Finance: By the end of the first year of operations, the cooperative will carefully
evaluate and plan investments and budget expenses to generate a consistent 30% pretax
profit. The cooperative will continue to generate between 30%-35% pretax profits over
the next five years.
3. MARKETING MANAGEMENT
3.1 Existing Market
The utilization of essential oil is very extensive and covers a wide range of human
activity. Some of the important uses are as; ingredients in the manufacture of soaps,
cosmetics, perfumery, health care herbal products, confectionary, aerated water, syrups,
disinfectants, insecticides, fungicides, paper writing pads, greeting cards etc.
The world's total production of essential oil is estimated at about 1, 00,000 to1, 10,000
tons. But, Nepal shares a negligible percentage of essential oil in terms of production
despite its rich aromatic floral diversity. Most of the essential oil produced is exported,
while few amounts are marketed within the country. This oil is very expensive and earns
good revenue in terms of foreign exchange.
The demand for essential oil is increasing day by day within the country with the
advancement of education and prosperity in the country. Fragrance plays a vital role in
securing consumer's acceptability in almost every product used. The following are the
reasons for the scope of essential oil:
• Essential oil is now a basic raw material for consumer products meant for mass
consumption.
• The interest in aromatics for their therapeutic value is increasing due to the
worldwide scare of the side effects of synthetics, also the revival of interest in herbs.
• Essential oil has the potential of being very safe insecticide. It has been found very
effective and safe for the production of food grains.
• The by products of aromatic plants can be used as a mulching material, fuel, cattle
feed or ploughed back to soil to improve fertility.
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The existing selling prices of different essential oils in Nepal are as follows:
There is a huge market of essential oils in Western countries with an increasing trend.
The main importers of essential oils from Nepal are Germany, France, United Kingdom,
United States, Italy, Belgium and Spain.
3.2.1 Products
The Cooperative will initially process Artemisia oil and Calamus oil for Kathmandu
market. Depending on the market demand, it will add to its product line with Ginger oil
and Amomum oil. The most profitable essential oil will hold the major share of
production in this cooperative. The cooperative will pay close attention in maintaining
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quality of oils and it will also maintain the consistency oil quality. To produce high
quality products, the cooperative will introduce an effective monitoring mechanism.
The essential oils are measured in kilogram. These finished products will be packaged in
epoxy coated metal container or/ aluminum container or/ HDPE; US approved food grade
container and the container will be labeled.
The cooperative will get feedback and inputs from its customers to improve the quality
and will try to meet their needs. The cooperative will attempt to satisfy the market
demand and obtain higher returns.
3.2.2 Price
The cooperative will offer its product at an appropriate rate factoring the cost of
production and distribution, target of profits, and competitor's offer in the market. At the
initial stage, market price dictates the price of its products. The cooperative will give
more focus on gaining better price rather than increasing its market share or sales
volume.
Wholesalers and exporters are the main target customers of the essential oils produced by
this cooperative. Later, international market opportunities will be explored in order to
gain a better price for its products.
The cooperative targets selling Artemisia oil at Rs 2,300/- and Calamus oil at Rs 1,700/-
in Kathmandu at the initial stage. If the market demands for other oils (Ginger oil,
Amomum oil), the cooperative will produce accordingly and price its products
considering the going rate, cost of production, target of profit, and perceived value of the
market for the products.
3.2.3 Distribution
The cooperative entertain various types of marketing and distribution channels. Firstly, it
will try to distribute its products directly to the essential oil exporters in Kathmandu.
Then it will target different herbal products producers as cosmetics, soaps, perfumery,
health care herbal products, confectionary, insecticides, fungicides and so on.
The cooperative can distribute the products in Kathmandu or other parts of Nepal as well.
It will choose the most profitable mode of distribution.
3.2.4 Promotion
The cooperative will entertain various types of promotional activities that are appropriate
for selling its products. The cooperative will prepare good quality products with safe
packaging, which can meet the needs of the buyers. On the label, it will read the name of
cooperative, name of items, batch no, net content, weight of container, and other useful
information according to the market demand.
The cooperative staff will meet personally and send business offers to potential buyers. It
will provide samples of products to prospective clients who show interest. It will also
approach the companies nationally and abroad that promote the eco-friendly and socially
equitable business. It will explore the opportunities of participation in an association of
herbs and herbal products, as well as enter into promotional meetings and campaigns.
The cooperative will seek opportunities to form strategic alliance with various business
companies and organizations for promoting its products and the cooperative image. It
will further explore e-commerce (internet) for marketing.
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4. TECHNOLOGY/PRODUCTION
4.1 Cooperative Site
Tinjure Herbs Cooperative Society Limited will be situated in Ambung VDC, ward no.-2.
This processing cooperative will be established in an open area where sun exposure and a
permanent source of water are guaranteed. The cooperative will acquire about 5-13-0-0
of land for the processing of essential oils. This processing site will be near to the
settlements of Sansari, motorable road accessibility for the main beneficiaries. It is also
near to the resource base and within the distance of fifteen minute from Jirikhimty Bazar,
the main trading centre of Tehrathum.
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for weighing the raw materials and firewood.
3. Containers 40 Metal/Aluminum/HDPE with 5kg, 10kg, 25kg,
30kg, 50kg capacity
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Storeroom at the cooperative site will be carefully managed with the capacity of storing
one season's supply of raw materials and finished products. It will be damp proof to
protect the products from any damage.
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Essential oils will be stored in sealed containers in dark and cool warehouse. Most
essential oil deteriorates through oxidation and polymerization upon prolonged exposure
to air and light. Without such precaution essences become less intense, grow darker and
more viscous, develop a bleaching effect and eventually changes into a brown, odorless
resin.
The manager of the processing unit will supervise all these handling procedures.
Prior to marketing, the essential oils items will be laboratory analyzed for its
specification. They will be sent to the authorized laboratory as Natural Products Research
Laboratory under Department of Plant Resources or/ laboratory of Herbs Production and
Processing Company Limited. Organo-leptic properties, physico chemical properties and
gas liquid chromatography (GLC) analysis will be performed by this laboratory.
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The same processing unit will be utilized for processing of all the four essential oils
(Artemisia oil, Calamus oil, Ginger oil and Amomum oil) for few years of its operation.
Titepati will be processed in fresh or semi wilted form soon after the collection in May,
June and August. Whereas Bojho, Aduwa and Alaichi can be processed at any season of
the year since they can be processed after the shade drying and can be stored for long
time.
After processing of each item of essential oil, the processing unit will be well cleaned
with hot water and properly sun dried followed by cleaning with rectified alcohol, in
order to exhaust the odour of previously distilled oil. Similar procedure can be applied
after distilling all items of essential oils, thus ensuring contamination of oils.
5. MANAGEMENT
5.1 Ownership and Organizational Structure
The owner of this cooperative are the local communities of the areas. Community forest
user groups and bilateral donors will be requested to invest some amount to operate the
unit. The cooperative management committee will be formed. The cooperative
management committee and the forest user group committee will supervise and monitor
the distillation unit and resource management activities. Business professionals and
technical manpower will run the distillation unit.
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bridge between the community and the cooperative board. The members of forest user
group and NTFPs/Essential oil experts will provide advice and suggestions by
participating in the advisory board that is determined by the board. The board will make
policies and other high level decisions for the distillation unit development. A managing
director who is appointed by the board will supervise the distillation unit activities and
will direct the manager to achieve the objective of the cooperative. The board will recruit
the manager, and managing director of the board will recruit all the manpower for this
cooperative.
5.2.2 Manager
The cooperative employs a manager for the management of all the activities of this unit.
The manager will be accountable for all unit activities and will try to achieve the goals of
the cooperative. The main responsibilities of the manager are as follows:
¾ Procurement of the raw materials and others
¾ Manage the inventory of all the materials
¾ Manage the efficient production
¾ Control the quality of the product
¾ Supervise and motivate the manpower of the unit
¾ Keep the up to date account of the unit and get the auditing of accounts completed
¾ Analyze and control the financial activities
¾ Prepare the financial and unit operation report and submit to the board
¾ Manage the marketing activities of the oils
¾ Maintain good relationship with all stakeholders
5.2.3 Technicians
There will be 2 technicians in this distillation unit at the time of 100 % production
capacity but 1 technician at the initial stage of operation. They are accountable for the
efficient production of quality products. The main responsibility of the technicians is as
follows:
¾ Manage the efficient production process
¾ Extract the essential oils
¾ Control the quality of essential oils
¾ Supervise and motivate the subordinate workers of the unit and report to the manager
¾ Do the activities delegated and directed by the manager
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5.3 Remuneration
The employees of the distillation unit will be compensated for their service on monthly
basis in the beginning period of operations. But once they become trained, per kg
remuneration system will be introduced. The initial compensation rate and expenses has
been given in annex- 5.
5.5.1 Collectors/Suppliers
The collectors provide raw materials and firewood to the distillation unit and suppliers
provide other materials as packaging and labeling materials. The collectors will collect
raw materials (Titepati, Bojho, Aduwa and Alaichi) and firewood from the private lands
national as well as community forest according to the provision of their operational plan
of the community forest user groups and forest rules and regulations. Unit management
will maintain smooth relations with these groups to obtain the inputs. The collectors will
be given instructions and training on the harvesting and post harvesting techniques in
collaboration with forest user groups. The management will compensate these groups for
their services and goods.
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operational plan. While they issue the collection permit to the cooperative, the
cooperative will pay them a forest management fee as prescribed in the operational plan.
The cooperative will assist the FUGs to conduct the forest product harvesting and
management training.
5.5.3 Traders
The cooperative will develop a good relationship with the traders in performing its
business activities. The existing traders and commission agents can be used for obtaining
various inputs like raw materials, firewood, packaging materials, office supplies etc. The
cooperative can pass its products through traders to reach its target customer. When the
need arises and efficiency exists to use traders for supplying the inputs and marketing
products, the cooperative will manage the coordinated activities.
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6. RISK ANALYSIS AND MITIGATION STRATEGIES
6.1 Raw Materials
There is a possibility of increase in the price of raw materials. If price increase, it can go
up gradually. Collection of raw materials used for extraction of essential oils is a simple
process and they are found near by settlements. So, dramatic increase in the price is
unlikely.
Whereas, the resource is large enough, the supply of the raw materials will not be a
problem for this cooperative. Since the suppliers or collectors of raw materials are
involved in the ownership and management of this cooperative, the other unit if enter will
not pose a threat and will not create shortages of raw materials for this unit. To ensure the
sustainable supply of required raw materials, the cooperative will provide harvesting
training to the collectors. The NTFPs management system will be applied in community
forests and a raw materials sourcing plan also be introduced. Moreover, the rotational
system of harvesting will be practiced. Test plots on various harvest regiments will be
conducted and collectors will harvest in groups at agreed upon times in keeping with
forest operational plans. Furthermore, the forest user groups/farmers are motivated and
encouraged for the cultivation of Titepati and Bojho in the community forest lands as
well as in the marginal/swampy waste lands.
The quality of raw materials could be the problem for the cooperative if the collectors are
not well convinced to supply high grade materials. The cooperative will pay different
rates for different grades of raw materials in order to provide incentives to the collectors
to supply the best materials possible to the unit.
The cost of raw materials collection, transportation, and storage may slightly increase, if
the community of Ambung VDC cannot feed the cooperative. To solve this problem, the
cooperative will try to buy the materials at the unit site. When it has to buy from the
collection communities, it can use the existing trade channel of other NTFPs and can give
the responsibility of collection of raw materials to commission agents or send its
employee to procure the raw materials from the communities.
The cooperative will negotiate with the forest user groups and district forest office for the
sustainable supply of the raw materials.
6.2 Fuel/Energy
Firewood is a major source of fuel for the essential oil extraction unit. It is supplied from
the private forest and the community forest nearby according to the management plan of
the forest.
There can be a problem in firewood supply, if no control measures are applied. To
mitigate this problem, the cooperative will coordinate with local communities and forest
user groups and work to prepare a management plan for firewood production.
6.3 Sales
There is a good market for essential oils in Kathmandu from where most of them are
exported to international markets. There can be the decrease of sales volume, selling
price and increase of selling expenses, if the cooperative experiences intense competition
among other producers. Moreover, Ginger oil and Amomum oil will be the new
introduction to the market. Therefore, the cooperative has to bear the risk, if fails to
market in the initial stage.
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But with the established market, and demand far outweighing supply, sales volume is not
likely to decrease. Selling price and cost of selling price however could change. The
cooperative will produce consistent quality products and improve its products according
to the demand of the market. It will also diversify its target market to ensure strong sales
over the long run.
6.4 Manpower
Extraction of essential oils from steam distillation process entertains simple technology.
Once the manpower is trained, there is low probability of experiencing manpower
shortages. Most of the employees will be from the local area. They will be trained on
extraction of essential oils adopting steam distillation method before production begins.
However, regular training will be arranged to uplift skills for those who require such
training. For the initial stage, if no local experts in oil extraction are available in the area,
such technicians will be hired from outside.
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Its eco-friendly and socially equitable marketing approach will also stimulate and
strengthen business transactions in the targeted niche markets to allow better comparative
advantages for the cooperative.
The cooperative will sell the products to Kathmandu based exporters, wholesalers, and
manufacturers of essential oils at the beginning. The export market will be explored later.
This is a community initiated cooperative. The cooperative does not intend to increase its
market share substantially because the supply side of raw materials limits it. The
cooperative will also have low shares of the total market because it is concentrating on a
market niche. One of the main advantages of targeting a niche market is the potential for
high profits. The cooperative knows the target customers well that it meets their needs
better. To save its market share the cooperative aims at providing consistent quality
products in a socially equitable and environmentally friendly way in order to attract
socially concerned customers.
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provisions indefinitely. The assumptions and conditions applied in calculating working
capital are presented as follows:
b. Fixed Capital
Total fixed capital for this cooperative is estimated to be total Rs 1,797,400/- including
fixed assets and Rs 47,500/- for pre operating expenses.
1. Fixed Assets
It has been estimated that Rs 124,000/- will be required for land and improvement, Rs
644,800/- for building, Rs 977,100/- for machinery and equipments, Rs 30,000/- for
accessories and furniture, and Rs 21,500/- for other infrastructure like water tank,
fencing, stove and so on.
2. Pre-operating
The total Rs 47,500/- has been estimated for pre operating expenses. This includes the
cost for registration of cooperative, installment of machinery and tools, initial short
training, and trial process etc.
7.1.2 Sources
The cooperative management board and the local communities of the area will manage
and invest its resources and cash equivalent to 25 % of total capital requirement and
bilateral development agencies working in the field of natural resource management will
be requested to invest 75 %. At the initial stage, there will be no short term and long-term
loans in the capital structure. However, the cooperative can mix the loan in its capital mix
in the course of operation if any financial needs arise or any external source of capital
sounds easy to access and profitable to the cooperative. The cooperative can take a short-
term loan for working capital and long-term loans for fixed capital from commercial
banks and the Agricultural Development Bank.
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years, machinery and tools to be 10 years, furniture 5 years, weighing balance 5 years,
containers 2 years, other accessories 2 years and other infrastructures 4 years.
The total depreciation is estimated in strait in straight-line methods and it accounts Rs
163,290/- per year. The maintenance of the building, machinery and equipments, and
other infrastructure is a regular activity for the longevity of these assets.
b. Energy Expenses
Main source of energy is firewood. It is used for steaming raw materials while
processing. The cooperative will consume 373 kg of firewood per day. In total operation
of 230 days in a year, it needs 85,790 kg of firewood for its annual operation. Total
firewood cost is estimated to be Rs 64,400/- for a year including royalties.
c. Supporting Materials
The cooperative needs packaging and labeling materials. Epoxy coated metal containers
will be used as packaging materials. The capacity ranges from 5kg, 10kg, 20kg, 25kg,
50kg which will cost a total of Rs 30,000/-. Also the cooperative will use HDPE
containers with capacity of 20kg and 30kg, the cost of which is expected to be Rs
10,000/-. The total of Rs 42,250/- is estimated to be spent for purchasing packaging
materials including the cost for transportation and the travel cost for the procurement.
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d. Manpower and Selling Expenses
The cooperative employs 7 direct workers for its operation. The technicians work for a
full year. On the other hand, the labors are employed for only 8 months a year. The
cooperative invests Rs 276,000/- for the remuneration for the workforces working
directly in the production of essential oils.
The cooperative has planned to sell its products in Kathmandu. The production of
Artemisia oil in a year will be 250 kg, Calamus oil will be 150 kg, Ginger oil will be 50
kg and Amomum oil will be 100 kg. The estimated direct selling expenses for one kg of
each oil is Rs 2,300/-, Rs 1,700/-, Rs 11,000/- and Rs 2,000/- respectively, including the
travel expenses of sales person.
The cooperative will manage the delivery of the oils to Kathmandu according to the
volume of oil.
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Break Even Point (BEP)
Break even point is 6.67 kg of Artemisia oil, 4.00 kg of Calamus oil, 1.33 kg of Ginger
oil and 2.08 kg of Amomum oil in sales unit, with Rs 12,269.3 for Artemesia oil, Rs
5,441.27 for Calamus oil, Rs 11,736.07 for Ginger oil and Rs 4,267.66 for Amomum oil
in sales amount at the initial year.
Sensitivity Analysis
For NPV and PI, net cash flow of ten year has been taken into account. BEP has based on
the costs, and selling prices and ROI has based on the capital investment of Rs
1,000,000/- and net incomes at initial 50% capital utilization on following condition.
8. PLAN OF OPERATION
The operational plan acts as a guideline for the cooperative development activities. The
arrangement of time line, responsibility assignment, methods, and support had been
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clearly identified. This processing unit development plan is a joint effort of local
communities, forest user groups, district forest office, district cottage and small scale
industry office, and other stakeholders.
Registration of the cooperative has been completed. Preparation of water management
system, other infrastructure, construction of building, purchasing of machinery and tools
has to be done at the earliest possible period. These activities will be assigned to the
management board. Procurement of raw materials, firewood, and other necessary goods
will be done before the production starts. The production of essential oils will begin by
November, 2005.
9. CONCLUSION
The ecological, financial, technological and social analysis of this project clearly
indicates that the project is highly feasible and sustainable. Medium investment in fixed
assets, high cash inflows to the communities, high income and employment generation,
use of simple technology and sustainable supply of raw materials from the local source,
and participation of local communities in management and ownership of the cooperative
have enabled the sustainability of this cooperative. With the high return on investment,
short pay back period, low percentage of break even point, high rate of internal rate of
return and profitability index, high positive net present value, and high liquidity ratios,
this cooperative is financially profitable and viable in the short as well as long run.
This project has low risk from raw material sourcing to marketing aspects. This project
will make positive impact on resource conservation and social, technological and
economic development in the society.
While implementing this project, separate detailed resource conservation and
management plan, marketing plan, technical production plan, and monitoring plan will be
devised to strengthen this project for better benefits to the shareholders and customers of
this cooperative and to the whole society in the long run.
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