PROJECT REPORT
Of
SHATAWARI PROCESSING UNIT
PURPOSE OF THE DOCUMENT
This particular pre-feasibility is regarding Shatawari Processing 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
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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 : PROCESSED SHATAWARI
6 Name of the project / business activity proposed : SHATAWARI PROCESSING UNIT
7 Cost of Project : Rs.17.4 Lakhs
8 Means of Finance
Term Loan Rs.8.46 Lakhs
Own Capital Rs.1.74 Lakhs
Working Capital Rs.7.2 Lakhs
9 Debt Service Coverage Ratio : 3.59
10 Pay Back Period : 5 Years
11 Project Implementation Period : 5-6 Months
12 Break Even Point : 26%
13 Employment : 12 Persons
14 Power Requirement : 20.00 HP
15 Major Raw materials : Harvested Shatawari Roots and Packing Material
16 Estimated Annual Sales Turnover (Max Capacity) : 167.91 Lakhs
17 Detailed Cost of Project & Means of Finance
COST OF PROJECT (Rs. In Lakhs)
Particulars Amount
Land Own/Rented
Plant & Machinery 8.60
Furniture & Fixtures 0.80
Working Capital 8.00
Total 17.40
MEANS OF FINANCE
Particulars Amount
Own Contribution 1.74
Working Capital(Finance) 7.20
Term Loan 8.46
Total 17.40
SHATAWARI PROCESSING UNIT
Introduction:
Shatavari is a plant native to India that is utilized in Siddha and homeopathic therapy.
More than 500 tonnes of Shatavari roots are needed in India every year for various
medical formulations, according to estimates. There were over 300 species of
Asparagus in the world, with 22 species reported in India. Racemosus is found all
over the world, including populations in tropical Africa, Java, Australia, Sri Lanka,
southern China, and India, however, it is primarily grown in India. The plant is a
perennial in nature, prickly climber with an overly branched prickly undershrub that
grows up to 1200 meters in the tropical and subtropical portions of India. Tuberous
roots, 15-40 cm long and greyish in color. Shatavari, often known as the "Queen of
Herbs," has long been revered in the Hindu religion for its unique ability to promote
love and devotion. The Rig Veda and Atharva Veda were the first to mention this
potent herb. Shatavari plant has been utilized in India for thousands of years as a
powerful aphrodisiac (Vaajikarana) and tonic (Rasayana).
Uses & Market Potential:
Shatavari is a key ingredient in Ayurvedic medicine. Dried root are used to treat a variety
of reproductive and hormonal disorders in women. It's also used to treat indigestion and
stomach ulcers. Despite its lengthy history of use in Ayurveda, there is few researches that
back up Shatavari health benefits. For farmers in India, commercial cultivation of
medicinal plants is one of the most profitable agribusinesses. The cultivation of medicinal
herbs such as shankhapushpi, atis, kuth, kutki, kapikachhu, and karanja is transforming
the Indian agricultural ayurveda landscape and offering farmers with unprecedented
potential to raise their revenues. There are 25 significant medicinal herbs that are always
in high demand, according to the traditional treatment health facility. Satavari, Indian
Barberry, Liquorice, Bael, Isabgol, Atis, Guggal, Kerth, Aonla, Chandan, Senna,
Baiberang, Long Pepper, Brahmi, Jatamansi, Kalmegh, Ashwagandha, Chirata, Katki,
Shankhpushpi, Ashoka, Giloe, Kokum, and Safed Musli are among these plants. The
market for medical plants in India stood at Rs. 4.2 billion (US$ 56.6 million) in 2019 and
is expected to increase at a CAGR 38.5% to Rs. 14 billion (US$ 188.6 million) by 2026.
The total world herbal trade is currently assessed at US$ 120 billion. India’s share in the
global export of herbs and herbal products is low due to unsophisticated agricultural and
quality control procedures, lack of processing, research & development, standardisation
in products and regulatory framework in trade of medicinal plants. The export of herbs
and value-added extracts of medicinal herbs has been gradually increasing over years. In
2017-2018, India exported US$ 330.18 million worth of herbs at a growth rate of 14.22%
over the previous year. Also, exports of value-added extracts of medicinal herbs and herbal
products in 2017-2018 stood at US$ 456.12 million, recording a growth rate of 12.23%
over the previous year.
Product:
Processed Shatawari
Raw Material:
1. Harvested root of Shatawari
2. Packing Material
Manufacturing Process:
Procurement of raw material
Washing the root
Boiling of the root
Drying
Packaging & Storage
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:
S No. Machine Unit Price (INR)
1. Rotary vegetable washer 1 260000
2. Electric Heating Jacketed Kettle 1 160000
3. Shatawari Peeling Machine 1 100000
4. Tray Dryer 1 240000
5. Material Handling & other equipment’s Ls 100000
Total Amount 860000
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-2
FINANCIALS
PROJECTED BALANCE SHEET
PARTICULARS I II III IV V
SOURCES OF FUND
Capital Account
Opening Balance - 2.40 3.98 6.47 9.61
Add: Additions 1.74 - - - -
Add: Net Profit 4.06 5.18 6.29 7.64 9.03
Less: Drawings 3.40 3.60 3.80 4.50 5.50
Closing Balance 2.40 3.98 6.47 9.61 13.14
CC Limit 7.20 7.20 7.20 7.20 7.20
Term Loan 7.52 5.64 3.76 1.88 -
Sundry Creditors 2.93 3.49 4.08 4.69 5.33
TOTAL : 20.04 20.31 21.50 23.38 25.66
APPLICATION OF FUND
Fixed Assets ( Gross) 9.40 9.40 9.40 9.40 9.40
Gross Dep. 1.37 2.54 3.54 4.39 5.11
Net Fixed Assets 8.03 6.86 5.86 5.01 4.29
Current Assets
Sundry Debtors 4.28 5.37 6.32 7.32 8.40
Stock in Hand 6.65 7.94 9.28 10.67 12.13
Cash and Bank 1.09 0.14 0.04 0.37 0.85
TOTAL : 20.04 20.31 21.50 23.38 25.66
- - - - -
PROJECTED PROFITABILITY STATEMENT
PARTICULARS I II III IV V
A) SALES
Gross Sale 85.50 107.38 126.41 146.33 167.91
Total (A) 85.50 107.38 126.41 146.33 167.91
B) COST OF SALES
Raw Material Consumed 58.50 69.83 81.60 93.83 106.50
Elecricity Expenses 1.34 1.57 1.79 2.01 2.24
Repair & Maintenance 2.14 2.68 3.16 3.66 4.20
Labour & Wages 11.09 13.64 16.37 19.31 22.40
Depreciation 1.37 1.17 1.00 0.85 0.73
Cost of Production 74.44 88.88 103.91 119.66 136.06
Add: Opening Stock /WIP - 3.72 4.44 5.20 5.98
Less: Closing Stock /WIP 3.72 4.44 5.20 5.98 6.80
Cost of Sales (B) 70.72 88.16 103.16 118.87 135.24
C) GROSS PROFIT (A-B) 14.78 19.22 23.24 27.46 32.66
17.29% 17.90% 18.39% 18.77% 19.45%
D) Bank Interest i) (Term Loan ) 0.92 0.75 0.54 0.34 0.13
ii) Interest On Working Capital 0.79 0.79 0.79 0.79 0.79
E) Salary to Staff 7.31 9.06 10.69 11.98 13.89
F) Selling & Adm Expenses Exp. 1.71 3.22 4.42 5.85 7.56
G) TOTAL (D+E+F) 10.73 13.82 16.45 18.96 22.37
H) NET PROFIT 4.06 5.39 6.79 8.50 10.29
4.7% 5.0% 5.4% 5.8% 6.1%
I) Taxation - 0.21 0.50 0.86 1.26
J) PROFIT (After Tax) 4.06 5.18 6.29 7.64 9.03
PROJECTED CASH FLOW STATEMENT
PARTICULARS I II III IV V
SOURCES OF FUND
Own Contribution 1.74 - - - -
Reserve & Surplus 4.06 5.39 6.79 8.50 10.29
Depriciation & Exp. W/off 1.37 1.17 1.00 0.85 0.73
Increase In Cash Credit 7.20 - - - -
Increase In Term Loan 8.46 - - - -
Increase in Creditors 2.93 0.57 0.59 0.61 0.63
TOTAL : 25.75 7.13 8.38 9.96 11.65
APPLICATION OF FUND
Increase in Fixed Assets 9.40 - - - -
Increase in Stock 6.65 1.29 1.34 1.40 1.45
Increase in Debtors 4.28 1.09 0.95 1.00 1.08
Repayment of Term Loan 0.94 1.88 1.88 1.88 1.88
Taxation - 0.21 0.50 0.86 1.26
Drawings 3.40 3.60 3.80 4.50 5.50
TOTAL : 24.66 8.07 8.47 9.63 11.17
Opening Cash & Bank Balance - 1.09 0.14 0.04 0.37
Add : Surplus 1.09 - 0.95 - 0.10 0.33 0.48
Closing Cash & Bank Balance 1.09 0.14 0.04 0.37 0.85
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL
PARTICULARS I II III IV V
Finished Goods
(15 Days requirement) 3.72 4.44 5.20 5.98 6.80
Raw Material
(15 Days requirement) 2.93 3.49 4.08 4.69 5.33
Closing Stock 6.65 7.94 9.28 10.67 12.13
COMPUTATION OF WORKING CAPITAL REQUIREMENT
Particulars Amount Margin(10%) Net
Amount
Stock in Hand 6.65
Less:
Sundry Creditors 2.93
Paid Stock 3.72 0.37 3.35
Sundry Debtors 4.28 0.43 3.85
Working Capital Requirement 7.20
Margin 0.80
MPBF 7.20
Working Capital Demand 7.20
REPAYMENT SCHEDULE OF TERM LOAN 11.0%
Year Particulars Amount Addition Total Interest Repayment Cl Balance
I Opening Balance
Ist Quarter - 8.46 8.46 0.23 - 8.46
Iind Quarter 8.46 - 8.46 0.23 - 8.46
IIIrd Quarter 8.46 - 8.46 0.23 0.47 7.99
Ivth Quarter 7.99 - 7.99 0.22 0.47 7.52
0.92 0.94
II Opening Balance
Ist Quarter 7.52 - 7.52 0.21 0.47 7.05
Iind Quarter 7.05 - 7.05 0.19 0.47 6.58
IIIrd Quarter 6.58 - 6.58 0.18 0.47 6.11
Ivth Quarter 6.11 6.11 0.17 0.47 5.64
0.75 1.88
III Opening Balance
Ist Quarter 5.64 - 5.64 0.16 0.47 5.17
Iind Quarter 5.17 - 5.17 0.14 0.47 4.70
IIIrd Quarter 4.70 - 4.70 0.13 0.47 4.23
Ivth Quarter 4.23 4.23 0.12 0.47 3.76
0.54 1.88
IV Opening Balance
Ist Quarter 3.76 - 3.76 0.10 0.47 3.29
Iind Quarter 3.29 - 3.29 0.09 0.47 2.82
IIIrd Quarter 2.82 - 2.82 0.08 0.47 2.35
Ivth Quarter 2.35 2.35 0.06 0.47 1.88
0.34 1.88
V Opening Balance
Ist Quarter 1.88 - 1.88 0.05 0.47 1.41
Iind Quarter 1.41 - 1.41 0.04 0.47 0.94
IIIrd Quarter 0.94 - 0.94 0.03 0.47 0.47
Ivth Quarter 0.47 0.47 0.01 0.47 0.00
0.13 1.88
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 5.43 6.35 7.29 8.49 9.76
Interest on Term Loan 0.92 0.75 0.54 0.34 0.13
Total 6.34 7.10 7.83 8.83 9.89
REPAYMENT
Repayment of Term Loan 0.94 1.88 1.88 1.88 1.88
Interest on Term Loan 0.92 0.75 0.54 0.34 0.13
Total 1.86 2.63 2.42 2.22 2.01
DEBT SERVICE COVERAGE RATIO 3.41 2.70 3.23 3.98 4.92
AVERAGE D.S.C.R. 3.59
Assumptions:
1. Production Capacity of Shatawari Processing unit is taken at 500 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 15 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
sources from internet, experts, suppliers and various other sources. The actual
cost of the project or industry will have to be taken on case to case basis
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,
punitive, special, incidental or other consequential damages arising directly or
indirectly from any use of the Project Report Content, which is provided as is, and
without warranties.
