PROJECT REPORT

Of

CUMIN POWDER

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Cumin Powder 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 : CUMIN POWDER

6 Name of the project / business activity

CUMIN
proposed
POWDER
: MANUFACTURING UNIT

7 Cost of Project : Rs. 23.86 Lakhs

8 Means of Finance
Term Loan Rs. 10.59 Lakhs
Own Capital Rs. 2.07 Lakhs
Working Capital Rs. 7.25 Lakhs

9 Debt Service Coverage Ratio : 4.95

10 Pay Back Period : 5 Years

11 Project Implementation Period : 6-7 Months

12 Break Even Point : 17%

13 Employment : 12 Persons

14 Power Requirement : 8.00 KW

15 Major Raw materials : Cumin seeds

16 Estimated Annual Sales Turnover:(Max Capacity) 132.24 Lakhs

17 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lakhs)

Particulars Amount
Land Own/Rented
Plant & Machinery 12.92
Miss Assets 1.20
Furniture & Fixtures
Working Capital 9.74
Total 23.86

MEANS OF FINANCE
Particulars Amount
Own Contribution 6.02
Working Capital(Finance) 10.59
Term Loan 7.25
Total 23.86
1. INTRODUCTION

CUMIN POWDER

Cumin is one the earliest known minor spices used by mankind. Cumin
Powder or ground cumin (also known as Jeera Powder) is made by
powdering dry roasted cumin seeds in a grinder. This homemade powder
might appear ordinary but it has the magical powers to completely change
the taste of a drink or a dish. Known as Cuminum Cyminum, cumin is
obtained from a flowering plant that is majorly grown in India, North Africa,
and the Middle East. These cumin seeds are then dried and powdered just
like chili powder is made from dried red chilies and then used in various
cuisines. Prepared from dry roasted cumin seeds, Cumin Powder, Ground
Cumin or Jeera powder has all the quintessential components of cumin and
a roasted flavor that makes any cuisine in which it is used more palatable.
Cumin is rich in Vitamin E and hence it has anti-aging properties. Research
shows that Homemade Cumin Powder just like cumin essential oil is very
digestive, antiseptic, and diuretic. Not only is it good for your taste buds but
it also helps you when you want to lose weight. Moreover, it also prevents
diabetes, blood sugar cancer, treats insomnia, and is also good for the skin.
2. MARKET POTENTIAL:

Indian spices are the most sought-after globally, given their exquisite aroma,
texture, taste and medicinal value. India has the largest domestic market for
spices in the world.
In India Cumin powder, cumin powder has very high market demand after
garam masala and red chili powder due to its various uses.
In FY20, spices worth US$ 3.65 billion were exported. During FY19, a total
of 1.10 million tons of spices and spice products valued US$ 2.80 billion was
exported from the country as against 1.02 million tones valued US$ 2.78
billion in FY18, registering an increase of 7% in volume.

3. PRODUCT DESCRIPTION

3.1 Raw Material sources

Following raw material is required as the major raw material for the
manufacturing of Cumin powder.

S.N. Description

1 Cumin Seeds (Jeera)

2 Packaging material for pouch packaging

3 Cartoons

Average raw material price at wholesale rate of Cumin seeds is (cost per KG):
Rs. 200-230.00
3.2 MANUFACTURING PROCESS

• Procurement of raw material.

• Cleaning of impurities from Cumin seeds through cleaning process.
• Drying of moisture from Cumin seeds with the help of dryer.
• Grinding of Cumin & preparation of Cumin powder.
• Sieving of powder with the help of sieving machine
• Packaging of goods
• Transportation.

4. PROJECT COMPONENTS

4.1 Land

Land required 1000-1200 square feet approx.

Approximate rent for the same is Rs.20000-25000 per month.

4.2 Plant & Machinery

Recycling section

S.N. Item Description Image

1 Seed Cleaning
machine
 2 Dryer

3 Spice grinder

4 Sieving machine

5 Packaging machine

Note: Cost of the machinery is approx. Rs. 1292000.00 including GST and
other transportation cost.
5. FINANCIALS

PROJECT CUMIN POWDER

COST OF PROJECT
(in Lacs)
PARTICULARS AMOUNT

Land & Building Owned/rented

Plant & Machinery 12.92
Miscellaneous Assets 1.20
Working capital 9.74
Total 23.86

MEANS OF FINANCE

PARTICULARS AMOUNT
Own Contribution @ 25% 6.02
Term Loan @ 75% 10.59
Working Capital (Bank Finance) 7.25
Total 23.86
 PROJECT CUMIN POWDER

PROJECTED BALANCE SHEET (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Liabilities
Capital
opening balance 6.46 7.71 10.98 15.68
Add:- Own Capital 6.02
Add:- Retained Profit 5.44 7.75 9.87 13.71 19.00
Less:- Drawings 5.00 6.50 6.60 9.00 15.00

Closing Balance 6.46 7.71 10.98 15.68 19.68

Term Loan 9.41 7.06 4.71 2.35 -
Working Capital Limit 7.25 7.25 7.25 7.25 7.25
Sundry Creditors 2.24 3.67 4.49 5.34 6.22
Provisions & Other Liab 0.40 0.50 0.60 0.72 0.86
TOTAL : 25.77 26.19 28.03 31.35 34.02
Assets
Fixed Assets ( Gross) 14.12 14.12 14.12 14.12 14.12
Gross Dep. 2.06 3.81 5.31 6.59 7.68
Net Fixed Assets 12.06 10.31 8.81 7.53 6.44

Current Assets
Sundry Debtors 4.85 6.42 7.93 9.55 11.26
Stock in Hand 7.13 9.09 11.17 13.28 15.48
Cash and Bank 1.72 0.38 0.12 0.99 0.84
TOTAL : 25.77 26.19 28.03 31.35 34.02
- - - - -
 PROJECT CUMIN POWDER

PROJECTED PROFITABILITY STATEMENT (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Capacity Utilisation % 20% 25% 30% 35% 40%
SALES
Gross Sale
CUMIN POWDER 132.24 174.96 216.30 260.50 306.97

Total 132.24 174.96 216.30 260.50 306.97

COST OF SALES
Raw Material Consumed 96.00 122.40 149.76 178.08 207.36
Electricity Expenses 3.60 3.96 4.75 5.70 6.84
Depreciation 2.06 1.76 1.50 1.28 1.09
Wages & labour 5.76 6.34 7.60 9.12 10.95
Repair & maintenance 2.64 5.25 8.65 10.42 12.28
Consumables 7.93 10.50 12.98 15.63 18.42
Cost of Production 118.00 150.20 185.24 220.23 256.94
Add: Opening Stock /WIP - 3.93 5.01 6.17 7.34
Less: Closing Stock /WIP 3.93 5.01 6.17 7.34 8.56
Cost of Sales 114.06 149.12 184.07 219.07 255.72
GROSS PROFIT 18.18 25.83 32.23 41.43 51.26
Salary to Staff 3.60 4.32 5.18 6.22 6.84
Interest on Term Loan 1.04 0.92 0.66 0.40 0.14
Interest on working Capital 0.80 0.80 0.80 0.80 0.80
Rent 3.00 3.30 3.63 3.99 4.39
Selling & Administration Exp 4.30 8.75 10.82 15.63 18.42
TOTAL 12.74 18.08 21.08 27.04 30.59
NET PROFIT 5.44 7.75 11.14 14.39 20.66
Taxation - - 1.28 0.68 1.66
PROFIT (After Tax) 5.44 7.75 9.87 13.71 19.00
 PROJECT CUMIN POWDER

CALCULATION OF D.S.C.R

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

CASH ACCRUALS 7.50 9.50 11.36 14.98 20.09

Interest on Term Loan 1.04 0.92 0.66 0.40 0.14
Total 8.54 10.42 12.02 15.38 20.23

REPAYMENT
Instalment of Term Loan 1.18 2.35 2.35 2.35 2.35
Interest on Term Loan 1.04 0.92 0.66 0.40 0.14

Total 2.22 3.27 3.01 2.75 2.49

DEBT SERVICE COVERAGE RATIO 3.85 3.19 3.99 5.59 8.11

AVERAGE D.S.C.R. 4.95
 PROJECT CUMIN POWDER

PROJECTED CASH FLOW STATEMENT (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
SOURCES OF FUND
Own Margin 6.02
Net Profit 5.44 7.75 11.14 14.39 20.66
Depriciation & Exp. W/off 2.06 1.76 1.50 1.28 1.09
Increase in Cash Credit 7.25 - - - -
Increase In Term Loan 10.59 - - - -
Increase in Creditors 2.24 1.43 0.82 0.85 0.88
Increase in Provisions & Oth lib 0.40 0.10 0.10 0.12 0.14
Sunsidy/grant -
TOTAL : 34.00 11.04 13.56 16.64 22.78
APPLICATION OF FUND
Increase in Fixed Assets 14.12
Increase in Stock 7.13 1.95 2.08 2.11 2.20
Increase in Debtors 4.85 1.57 1.52 1.62 1.70
Repayment of Term Loan 1.18 2.35 2.35 2.35 2.35

Drawings 5.00 6.50 6.60 9.00 15.00

Taxation - - 1.28 0.68 1.66
TOTAL : 32.28 12.37 13.83 15.77 22.92

Opening Cash & Bank Balance - 1.72 0.38 0.12 0.99

Add : Surplus 1.72 -1.34 -0.27 0.87 -0.14
Closing Cash & Bank Balance 1.72 0.38 0.12 0.99 0.84
 PROJECT CUMIN POWDER

COMPUTATION OF CLOSING STOCK & WORKING CAPITAL (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Finished Goods
(10 Days) 3.93 5.01 6.17 7.34 8.56
Raw Material
(10 Days) 3.20 4.08 4.99 5.94 6.91
Closing Stock 7.13 9.09 11.17 13.28 15.48

COMPUTATION OF WORKING CAPITAL REQUIREMENT

TRADITIONAL METHOD (in Lacs)
Particulars Amount Own Margin Bank Finance
Finished Goods & Raw Material 7.13
Less : Creditors 2.24
Paid stock 4.89 25% 1.22 90% 3.67
Sundry Debtors 4.85 25% 1.21 90% 3.64
9.74 2.44 7.31
MPBF 7.31
WORKING CAPITAL LIMIT DEMAND ( from Bank) 7.25
Working Capital Margin 2.49
7. ASSUMPTIONS

1. Production Capacity of Cumin powder is 100 Kgs per day. First year, Capacity
has been taken @ 20%.

2. Working shift of 8 hours per day has been considered.

3. Raw Material stock is for 10 days and Finished goods Closing Stock has been

taken for 10 days.

4. Credit period to Sundry Debtors has been given for 10-15 days.

5. Credit period by the Sundry Creditors has been provided for 5-8 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 15 KW.

10. Selling Prices & Raw material costing has been increased by 2% & 3%
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
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