PROJECT REPORT

Of

MIZO CHILLI PICKLE

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Mizo Chilli Pickle Making unit.

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project
identification for investment and in order to serve his objective; the document covers various aspects
of the project concept development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement. We can also prepare
project report on any subject as per your requirement.]

Lucknow Office: Sidhivinayak Building ,

27/1/B, Gokhlley Marg, Lucknow-226001

Delhi Office : Multi Disciplinary Training

Centre, Gandhi Darshan Rajghat,
New Delhi 110002

Email : info@udyami.org.in
Contact : +91 7526000333, 444, 555
 PROJECT AT A GLANCE
1 Name of the Entreprenuer xxxxxxxxxx

2 Constitution (legal Status) : xxxxxxxxxx

3 Father / Spouse Name xxxxxxxxxxxx

4 Unit Address : xxxxxxxxxxxxxxxxxxxxxx

District : xxxxxxx
Pin: xxxxxxx State: xxxxx
Mobile xxxxxxx

5 Product and By Product : MIZO CHILLI PICKLE

6 Name of the project / business activity proposed : MIZO CHILLI PICKLE UNIT

7 Cost of Project : Rs.21.91 Lakhs

8 Means of Finance
Term Loan Rs.13.5 Lakhs
Own Capital Rs.2.19 Lakhs
Working Capital Rs.6.22 Lakhs

9 Debt Service Coverage Ratio : 2.93

10 Pay Back Period : 5 Years

11 Project Implementation Period : 5-6 Months

12 Break Even Point : 25%

13 Employment : 11 Persons

14 Power Requirement : 20.00 HP

15 Major Raw materials : Salt, Edible Oil, Mix Spices & other preservatives

16 Estimated Annual Sales Turnover (Max Capacity) : 151.12 Lakhs

17 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lakhs)

Particulars Amount
Land Own/Rented
Plant & Machinery 14.00
Furniture & Fixtures 1.00
Working Capital 6.91
Total 21.91

MEANS OF FINANCE
Particulars Amount
Own Contribution 2.19
Working Capital(Finance) 6.22
Term Loan 13.50
Total 21.91
 MIZO CHILLI PICKLE MAKING UNIT

Introduction:

Due to its unique climatic, topographic, and cultivation characteristics, the state of
Mizoram is endowed with a number of high-quality crop varieties that are unique to
Mizoram. The Mizo Chilli, also known as Mizoram Bird's Eye Chilli, is of exceptional
quality and is in high demand on both the national and international markets. Pickling is
a process to preserve raw fruits & vegetables for longer time. The variety and potential
for Mizoram Bird's Eye Chilli / Mizo chilli expansion is immense, but transportation,
manufacturing, and marketing problems must be addressed. In Mizoram, the Mizo chilli
is one of the most common and widely grown vegetables and spices. It is used to make
spicy relative, pickles, chutneys, and hot sauces to be eaten with noodles, and it is in high
demand in neighbouring states and countries such as China, Thailand, Vietnam, and
Bangladesh, so the bulk of the produce is exported. Mizo Chilli cultivation can be found
in the state of Mizoram. Mizoram has eight districts where three distinct varieties/quality
levels of Mizo Chilli are grown. All of these types are assumed to be the same, with the
exception of consistency variations. The bird eye red chili popularly known as Mizo chili
is known for its pungent taste and smell used to make pickles which is widely consumed
in India as well its neighbouring countries.
Uses & Market Potential:

Mizoram is a major producer of Mizo Chilli, despite the fact that other types of chilli are
almost non-existent. Other chilli varieties are smuggled into Mizoram from the
neighbouring states of Manipur and Assam. Mizoram has immense capacity for large-
scale development with proper market links, and every year, at least 20,000 tonnes are
shipped to Bangladesh and neighbouring states by unlicensed traders. There has been a
steady rise in the amount of product due to constant efforts for Agriculture and
Horticulture production in Mizoram, with a particular emphasis of the government on
Mizo chilli.

In India several people are in the habit of devouring pickles for breakfast, lunch and
dinner, as they need that kick of spices and flavour with each and every meal. Pickles,
which are prepared by local people using local products, are mostly liked by the
consumers. Homemade pickles are good in taste, but it takes prolonged time to prepare
&require good sunlight also. The global pickles market reached a value of US$ 10.6
Billion in 2019. Many companies are preparing pickles by using organic raw materials &
without adding any chemical preservatives. But the shelf life of organic pickles is less,
which works as a hurdle to market growth. The global market demand for different
pickles including mizo chilli pickle is growing extensively. Now days the distribution
channel is highly improved and active. The market has been segmented into supermarkets
& hypermarkets, convenience stores, independent retailers, online & others.

Product:
Mizo Chilli Pickle
Raw Material:
Basic raw material is Salt, Edible Oil, Mix Spices and other preservatives.

Manufacturing Process:

Raw material Procurement

Sorting

Washing

Stem Removing

Cutting & Chopping

Measuring of ingredients

Mixing

Fermentation

Aging

Filling

Sealing & Labelling

Area:

The industrial setup requires space for Inventory, workshop or manufacturing area, space
for power supply utilities and polishing area. Also, some of the area of building is
required for office staff facilities, office furniture, etc. Thus, the approximate total area
required for complete industrial setup is 1200-1800Sqft.

Cost of Machines:
Machine Unit Rate Price
Tumbler type vegetable & fruit washing 1 380000 380000
machine
Gravity Separator 1 400000 400000
Vegetable Slicing Machine 1 120000 120000
Kettle Mixer 1 80000 80000
Pickle Filling Machine 1 180000 180000
Material handling and other equipment’s - 240000 240000
Total Amount 1400000

Power Requirement- The estimated Power requirement is taken at 20 HP.

Manpower Requirement– Following manpower is required:

 Machine operator-2
 Skilled/unskilled worker-3
 Helper-4
 Manager cum Accountant-1
 Sales Personnel-1

FINANCIALS
PROJECTED BALANCE SHEET

PARTICULARS I II III IV V

SOURCES OF FUND
Capital Account
Opening Balance - 2.84 4.52 7.36 10.96
Add: Additions 2.19 - - - -
Add: Net Profit 4.65 6.17 7.84 9.60 11.31
Less: Drawings 4.00 4.50 5.00 6.00 7.00
Closing Balance 2.84 4.52 7.36 10.96 15.27
CC Limit 6.22 6.22 6.22 6.22 6.22
Term Loan 12.00 9.00 6.00 3.00 -
Sundry Creditors 2.43 2.89 3.37 3.87 4.38

TOTAL : 23.49 22.63 22.95 24.05 25.88

APPLICATION OF FUND

Fixed Assets ( Gross) 15.00 15.00 15.00 15.00 15.00

Gross Dep. 2.20 4.08 5.67 7.04 8.20
Net Fixed Assets 12.80 10.93 9.33 7.96 6.80

Current Assets
Sundry Debtors 3.59 4.51 5.31 6.15 7.05
Stock in Hand 5.75 6.85 7.98 9.16 10.39
Cash and Bank 1.35 0.35 0.33 0.77 1.63

TOTAL : 23.49 22.63 22.95 24.05 25.88

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS I II III IV V

A) SALES
Gross Sale 76.95 96.64 113.76 131.70 151.12

Total (A) 76.95 96.64 113.76 131.70 151.12

B) COST OF SALES

Raw Material Consumed 48.60 57.83 67.42 77.37 87.68

Elecricity Expenses 1.34 1.57 1.79 2.01 2.24
Repair & Maintenance 1.92 2.42 2.84 3.29 3.78
Labour & Wages 12.35 15.44 18.52 21.86 25.35
Depreciation 2.20 1.88 1.60 1.36 1.16
Cost of Production 66.41 79.13 92.17 105.89 120.21

Add: Opening Stock /WIP - 3.32 3.96 4.61 5.29

Less: Closing Stock /WIP 3.32 3.96 4.61 5.29 6.01

Cost of Sales (B) 63.09 78.49 91.52 105.20 119.50

C) GROSS PROFIT (A-B) 13.86 18.15 22.24 26.49 31.62

18.01% 18.78% 19.55% 20.12% 20.92%
D) Bank Interest i) (Term Loan ) 1.46 1.20 0.87 0.54 0.21
ii) Interest On Working Capital 0.68 0.68 0.68 0.68 0.68
E) Salary to Staff 5.67 6.92 8.30 9.55 11.07
F) Selling & Adm Expenses Exp. 1.39 2.71 3.64 4.61 6.04

G) TOTAL (D+E+F) 9.20 11.50 13.49 15.38 18.01

H) NET PROFIT 4.65 6.64 8.75 11.12 13.61

6.0% 6.9% 7.7% 8.4% 9.0%
I) Taxation - 0.47 0.91 1.52 2.30

J) PROFIT (After Tax) 4.65 6.17 7.84 9.60 11.31

PROJECTED CASH FLOW STATEMENT

PARTICULARS I II III IV V

SOURCES OF FUND

Own Contribution 2.19 - - - -

Reserve & Surplus 4.65 6.64 8.75 11.12 13.61
Depriciation & Exp. W/off 2.20 1.88 1.60 1.36 1.16
Increase In Cash Credit 6.22 - - - -
Increase In Term Loan 13.50 - - - -
Increase in Creditors 2.43 0.46 0.48 0.50 0.52

TOTAL : 31.19 8.98 10.83 12.98 15.29

APPLICATION OF FUND

Increase in Fixed Assets 15.00 - - - -

Increase in Stock 5.75 1.10 1.13 1.18 1.23
Increase in Debtors 3.59 0.92 0.80 0.84 0.91
Repayment of Term Loan 1.50 3.00 3.00 3.00 3.00
Taxation - 0.47 0.91 1.52 2.30
Drawings 4.00 4.50 5.00 6.00 7.00
TOTAL : 29.84 9.99 10.84 12.54 14.43

Opening Cash & Bank Balance - 1.35 0.35 0.33 0.77

Add : Surplus 1.35 - 1.01 - 0.01 0.44 0.85

Closing Cash & Bank Balance 1.35 0.35 0.33 0.77 1.63
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS I II III IV V

Finished Goods
(15 Days requirement) 3.32 3.96 4.61 5.29 6.01
Raw Material
(15 Days requirement) 2.43 2.89 3.37 3.87 4.38

Closing Stock 5.75 6.85 7.98 9.16 10.39

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Amount Margin(10%) Net

Amount
Stock in Hand 5.75
Less:
Sundry Creditors 2.43
Paid Stock 3.32 0.33 2.99

Sundry Debtors 3.59 0.36 3.23

Working Capital Requirement 6.22

Margin 0.69

MPBF 6.22
Working Capital Demand 6.22
REPAYMENT SCHEDULE OF TERM LOAN 11.0%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

I Opening Balance
Ist Quarter - 13.50 13.50 0.37 - 13.50
Iind Quarter 13.50 - 13.50 0.37 - 13.50
IIIrd Quarter 13.50 - 13.50 0.37 0.75 12.75
Ivth Quarter 12.75 - 12.75 0.35 0.75 12.00
1.46 1.50
II Opening Balance
Ist Quarter 12.00 - 12.00 0.33 0.75 11.25
Iind Quarter 11.25 - 11.25 0.31 0.75 10.50
IIIrd Quarter 10.50 - 10.50 0.29 0.75 9.75
Ivth Quarter 9.75 9.75 0.27 0.75 9.00
1.20 3.00
III Opening Balance
Ist Quarter 9.00 - 9.00 0.25 0.75 8.25
Iind Quarter 8.25 - 8.25 0.23 0.75 7.50
IIIrd Quarter 7.50 - 7.50 0.21 0.75 6.75
Ivth Quarter 6.75 6.75 0.19 0.75 6.00
0.87 3.00
IV Opening Balance
Ist Quarter 6.00 - 6.00 0.17 0.75 5.25
Iind Quarter 5.25 - 5.25 0.14 0.75 4.50
IIIrd Quarter 4.50 - 4.50 0.12 0.75 3.75
Ivth Quarter 3.75 3.75 0.10 0.75 3.00
0.54 3.00
V Opening Balance
Ist Quarter 3.00 - 3.00 0.08 0.75 2.25
Iind Quarter 2.25 - 2.25 0.06 0.75 1.50
IIIrd Quarter 1.50 - 1.50 0.04 0.75 0.75
Ivth Quarter 0.75 0.75 0.02 0.75 -
0.21 3.00

Door to Door Period 60 Months

Moratorium Period 6 Months
Repayment Period 54 Months
CALCULATION OF D.S.C.R
PARTICULARS I II III IV V

CASH ACCRUALS 6.85 8.05 9.44 10.96 12.48

Interest on Term Loan 1.46 1.20 0.87 0.54 0.21

Total 8.32 9.24 10.31 11.50 12.68

REPAYMENT
Repayment of Term Loan 1.50 3.00 3.00 3.00 3.00
Interest on Term Loan 1.46 1.20 0.87 0.54 0.21

Total 2.96 4.20 3.87 3.54 3.21

DEBT SERVICE COVERAGE RATIO 2.81 2.20 2.67 3.25 3.96

AVERAGE D.S.C.R. 2.93

Assumptions:
1. Production Capacity of Mizo Chilli Pickle Making unit is taken at 450 KG per
day. First year, Capacity has been taken @ 30%.

2. Working shift of 10 hours per day has been considered.

3. Raw Material stock and Finished goods closing stock has been taken for 15
days.

4. Credit period to Sundry Debtors has been given for 14 days.

5. Credit period by the Sundry Creditors has been provided for 15 days.

6. Depreciation and Income tax has been taken as per the Income tax Act,1961.

7. Interest on working Capital Loan and Term loan has been taken at 11%.

8. Salary and wages rates are taken as per the Current Market Scenario.

9. Power Consumption has been taken at 20 HP.

10. Selling Prices & Raw material costing has been increased by 3% & 2%
respectively in the subsequent years.
 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN
assume no financial liability to anyone using the content for any purpose. All the
materials and content contained in Project report is for educational purpose and
reflect the views of the industry which are drawn from various research material
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considering specific requirement of the project, capacity and type of plant and
other specific factors/cost directly related to the implementation of project. It is
intended for general guidance only and must not be considered a substitute for a
competent legal advice provided by a licensed industry professional. SAMADHAN
hereby disclaims any and all liability to any party for any direct, indirect, implied,
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