How to Start a Business of Energy Food Making

How to Start a Business of Energy Food Making


Product and Applications
Health awareness is fast growing and people are taking to such energy supplements to overcome ageing, tiredness, fatigue and general breakdown of the system. Various supplements are available in the market to lower fats increase stamina etc. People are very conscious of Cholesterol level in blood and avoid fatty foods. They are very selective of their diet and there is marked preference for low calorie high protein food supplements. The energy foods available in market are costly and beyond the reach of common man. Children are yet another group for cheap energy foods.

The technology for such foods has been developed by CFTRI.

Energy food is prepared from easily available ingredients like wheat, gram dal, jiggery, edible ground nut cake, minerals and vitamins. It is a ready to eat food item and does not require extensive cooking. Depending upon individuals tastes some milk or water can be added. It can also be used with other material while making food items like halwa, chapatti etc.

Market Potential
Urban market is targeted by the costly variety of energy foods which are generally beyond the reach of semi urban and rural population. A large market exists for such products in rural and semi urban areas. With greater health awareness and contamination of raw vegetables due to pesticides and other chemical fertilizers people prefer diet foods. Thus easy availability at reasonable price provides a large market with the vast rural and semi urban population.

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Manufacturing Process & Know-How
The process of manufacturing is not very complicated. Cleaned wheat is roasted in a roaster bin to brown colour and then ground in a hammer mill. Similarly gram dal and edible ground nut cake are also roasted and ground. Next jiggery is mixed with calcium carbonate and wheat flour and processed in multi mill to obtain coarse flour. Finally are the ingredients along with pre-mixed minerals and vitamins are thoroughly mixed and packed. A typical mix could be 60% wheat flour, 10% gram dal, 10% edible ground nut cake, 15-16% jiggery and balance calcium carbonate and vitamins. Quality control is a must.

The process flow chart is as under

Know how is available with Central Government research Laboratories. The machinery is all indigenously available.

The production capacity envisaged is 200 tonnes per annum on two shift basis for 330 days per year.

Plant and Machinery
The main plant and machinery required comprise

● Electrically operated roaster. – 1 no.

● Hammer Mill – 1no.

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● Multi mill. – 1nos

● Homogeniser – 1 no

● Sieves, SS utensils- L.S.

● Weighing scales

The total cost of machinery is estimated to be $200,000.

The unit will also require miscellaneous assets such as furniture, fixtures, storage facilities etc. the total cost of these is estimated to be $150,000

The total requirement of power shall be 30 HP, the unit will need 1000 lits of water daily.

Raw material and Packing Material
The basic raw materials for the unit are good quality wheat, gram dal, edible ground nut cake, jiggery are all available locally. Major requirement is that of wheat and for which advance bulk procurement shall have to be made. Printed polythene bags and packing cartons are the basic packing material required.

On an average, the raw material cost has been estimated to be $50,000 at 100% capacity utilization. At 60% capacity in 1st year the cost works out to $35,000.

Land and Building
For smooth operation of the unit, it will require 200 sq. mts of open land and a built up area of 125 sq. mts. The total cost of land and building is estimated at Rs. 3.85 lakhs.

Manpower
For smooth functioning of the unit the requirement of man power is expected to be around 6 persons.

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Sales person self
Skilled Workers 2
Helpers 4
The annual salary bill is estimated to be around Rs.1.50 lakhs

Sales Revenue
(100% capacity) Selling price varies depending on the product quality. An average price of Rs 32,000/- per tonne has been taken the annual income at installed capacity of 200 tonnes is Rs 64.00 lakhs.

Cost of Project
Rs. lakhs
Land & Building 3.85
Plant & Machinery 3.75
Other assets 0.70
Contingencies 0.75
P & P expenses. 0.75
Margin money 1.22
Total 11.02
Means of Finance
Promoters Contribution 3.32
Term Loan 7.70
Total 11.02
Profitability:(60%capacity)
Rs. lakhs
Sales 38.40
Raw material 23.43
Salary 1.50
Utilities 0.45
Stores & Spares 0.24
Repairs & Maintenance 0.36
Selling expenses 7.68
Administrative expenses 0.60
Depreciation 1.22
Interest on T.L 0.84
Interest on W.C 0.35
Cost of production 36.67
Profit 1.73
Requirement of Working Capital
Margin W.C Margin Money
Raw material & packing 15 days 30% 0.92 0.27
Stock of finished goods 15 days 25% 1.00 0.25
Working expenses 1 month 100% 0.30 0.30
Sale on credit 15 days 25% 1.50 0.40
Margin money for W.C 1.22
Break Even point
42%

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