Project of Mushroom Farming &

Preserving

Presented By:
Alok Srivastava
INTRODUCTION

 Mushrooms are gradually becoming popular as

they are rich in minerals and vitamins and
very low on fat and sugar. Fresh mushrooms
have very limited life and hence they need to
be consumed within few hours. But processing
and canning increases their shelf life to few
months. Mushroom is a nutritious vegetarian
delicacy and has many varieties. Most of them
are edible. It contains many vitamins and
minerals but very low on sugar and fat. It can
be grown in a temperature between 20 and 30
C and required relative humidity is 55 to 75%.
MARKET POTENTIAL

 mushrooms are packed in special quality

polythene bags or Canned. This variety can
be sold to far off places. Consumption of
mushrooms is increasing in the North-East
region and Guwahati, Shillong, Kohima etc.
are potential markets.
MANUFACTURING PROCESS

 Preparation of Natural Compost

↓
 Filling of Wooden Trays with Compost &
Pressing
↓
 Scattering of grain spawn and covering
of Trays
↓
 Spraying of Water and Stacking of Trays
Mushroom Processing

 Washing of Mushrooms in Cold Water

↓
 Blanching of Mushrooms in Boiling
Water
↓
 Dehydration and Packing

 Processing of Cans and Labelling

 Plant & Machinery

Item Qty. Price

Tray-type Dehydrator 1 70,000
Steam-jacketted Kettle 1 65,000
Can Steamer 1 20,000
Blanching Equipments 1 25,000
Straight-line Exhaust Box with 1 45,000
electric motor, gear box etc.
Canning Retort with 1 35,000
attachment
Stacking Trays 200 80,000
Baby Boiler 1 60,000
Laboratory Equipments 1 35,000
Total 4,35,000
Land and Building

Particular Area(sqm.) Price

Land 200 250
Buliding 100 4,50,00
Working Capital Requirements

Particulars Period Margin Total Bank Promoters

Total Bank
Promoters
Stock of 1 Month 30% .50 .35 .15
Packing
Materials
Stock of 1 Month 25% 1.0 .75 .25
Finished
Goods
Receivables 1 Month 25% 1.40 1.05 .35
Working 1 Month 100% .50 -- .50
Expenses
Total 3.40 2.15 1.25
Cost of the Project & Means of
Financing

ITEMS PRICE

Land & Building 5,00,000

Plant and Machinery 4,35,000

Misc. Assets 1,00,000

Preliminary exps. 1,75,000

Contingency for plant. 75,000

Working Capital Margin 1,25,000

Total 14,10,000

MODE OF FINANCE

Promoter contribution 4,60,000

Bank loan 9,50,000

Debt Equity Ratio 2.07:1

Promoter contribution 32.6%

Product Qty. Tons Price/Ton Sales Value
(Tonnes)
(Rs.)
Fresh 72 50,000 36
Mushrooms
Canned 36 75,000 25.5
Mushroom
Total sales 61.5
No. Particular I year II year III year IV year V year
A Installed 180 Tons 200 TONS

Capacity
Capacity 60% 65% 70% 70% 78%
Initialization
Sales 37 47 55 65 80
Realisation
B Cost Of
Production
Raw Material 11 13 14.5 16.6 20
and Packing

Utilities 2.4 3 5 6 8
Salaries 2.8 3.2 4 4.5 6
Store and 1 1.8 2 3 4
Spares
Selling 6 8 9.5 11 12
expenses
Administrati 4 5 6 6.9 8
ve exp.
TOTAL 27.2 34 43 49 58
C Profit Before 9.8 13 14 16 22
Int.& tax

Interest on loan 1.5 1.2 1.0 .80 1.2

(assumed @
14%)

Interest on .5 .75 .85 1.0 1.3

Working
Capital

Depreciation 1.3 1.45 1.65 2.4 2.5

Profit Before 6.5 9.6 10.6 11.8 17

Tax

Tax @ 33% 2.145 3.17 3.5 3.9 5.61

Profit After Tax 4.355 6.43 7.1 7.9 11.39

Repayment of 3.0 3.0 2.5 3

loan