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Menthol Crystal
PRODUCT CODE : 313183007 QUALITY AND STANDARDS : IS 3134 PRODUCTION CAPACITY : per annum ItemItemItemItemItem Q tQ tQ tQ tQ t yyyyy..... VVVVValualualualualue(Rse(Rse(Rse(Rs.)e(Rs.).).).) (a) Menthol 85.05 4,25,25, Flakes MT (b) De- 36.5 5,83, mentholised MT oil (DMO) MONTH AND YEAR : January, 2003 OF PREPARATION PREPARED BY : Small Industries Service Institute Opp, Okhla Industrial Estate, Okhla, New Delhi-110 020. Phone Nos.: 26838118,26838068, Fax No. : 26838016 E-mail : sisi@del3vsnl net.in
I NTRODUCTION
Mint oil and its derivative menthol is widely used as flavouring ingredient for various products such as tooth paste, dental cream, cough syrups, confectionery, pan masala, chewing gums and in pain relieving preparations.
Mentha cultivation in India has proved quite remunerative to the growers, particularly to small holders and fitted well in the existing cropping system in mint growing area in the country, Mint growers consider mentha as a bonus crop as it does not disturb or replace the cultivation of any major winter (Rabi) or rainy season (Kharif) crop. Being a labour intensive crop mentha provides various employment opportunities in cultivation, distillation, processing field particularly in rural areas.
There are several species and varieties of mint oil which are cultivated in one or the other parts of the world, five of them are grown on commercial scale in India, these are (I) Mentha- arvensis (ii) Mentha-piperita (iii) Mentha- spicata (iv) Mentha-veridish (v) Mentha- citrata. The important mint producing regions in India are in the states of Uttar Pradesh and Punjab. The former accounts for about 90% of total area under mint production, the important mint production cultivation districts are Jalandhar, Ludhiana and Hoshiarpur.
P RODUCT AND ITS U SES
Mentha oil is obtained from the leaves/entire plant of various mentha species and varieties. The Japanese mint
(Mentha arvensis) is mainly cultivated in our country. The oil of Japanese mint is used as a source of natural menthol and dementholised oil (DMO). Because of its refreshing aroma and cooling effect, Mints have very wide spread use as flavouring agent in different phar maceutical preparations.
MARKET POTENTIAL
The mint oil and its derivatives, menthol and DMO are now being marketed at various locations in North India as also being exported. The marketing of Japanese mint oil and menthol is wide spread. India is the second largest country in production of mints and its derivatives. India is exporting mints and its derivatives throughout the world worth Rs. 60- crores annually.
B ASIS AND PRESUMPTIONS
- The project is based on single shift basis and 300 working days in a year.
- Cost of machinery and equipment indicated in the profile refer to a particular make and prices are approximate to those prevailing at the time of preparation of project profile.
- Cost of installation, electrification etc. are taken as 10% of the cost of machinery and equipment.
- Depreciation on machinery and equipment has been taken as 10% of the cost of machinery and equipments.
- Margin money has been taken as 30% of the total capital investment.
- Break-even point has been calculated at the full capacity utilization.
I MPLEMENTATION SCHEDULE
The following steps are involved in the implementation of the project:
Selection of site 1 month Preparation of project profile 1 week Registration of the unit from 1 week D.I./D.I.C. No objection certificate from 2 weeks Pollution Control Board Calling of quotations and 1 month preparation of detailed Project report Approach to commercial bank1 month Installation and electrification 2 weeks of machinery and equipment Recruitment of staff 1 month Arrangement of raw materials 2 weeks and packaging materials
Keeping in view overlaps of some of the activities, the period normally required to implement the project is 5 to 6 months.
T ECHNICAL ASPECTS
Process of Manufacture The formation of menthol crystals involves: I. Freezing of the mint oil. II. Removal of the oil crystals from the residual oil by centrifuging. III. Drying of the crystals. After collection of the mint oil from farmers/brokers, it should be filtered prior to cooling as it usually contains some water and mucilaginous impurities, which prevent ready formation of the menthol crystals. For crystallization some producers use filter and centrifuge the oil.
- Transportation and – – 77, installation charge @ 10% of the cost of plant and machinery Total 8,56,
B. Working Capital (i) Staff and Labour (per month )
Sl. Designation No. Salary Total No. (Rs.) (Rs.) 1 Chemist/Manager 1 10,000 10, 2 Technical Assistant 4 5,000 20, 3 Skilled Worker 6 4,000 24, 4 Typist /Clerk 1 4,000 4, 5 Watchman 4 3,000 12, Total 70, Perquisites @ 15% 10, Total 80, (ii) Raw Materials and Packing Materials (per month)
Sl. Particulars Qty. Rate Amount No. (Rs.) (Rs.)
- Mint oil 11,250 kg. 300 kg 33,75,
- Chemicals – – 10,
- Packing materials – – 20, Total 34,05,
(iii) Utilities (per month) Particulars Qty. Rate(Rs.) Total (Rs.) Power 1250 unit @ Rs.4 5, Fuel 5, Total 10,
(iv) Other Contingent Expenses (Rs.)
- Postage/Stationery 1,
- Telephone 500
- Repair/maintenance 5,
- Transportation 10,
- Advertisement/publicity 5,
- Miscellaneous expenses 2, Total 23,
(v) Total Working Capital (per month) = Rs.80,500 + 34,05,000 + 10,000 + 23, = Rs. 35,19, Total Capital Investmentm Fixed capital 17.36, Working capital (3months) 1,05,57, Total 1, 22,93,
Machinery Utilization Full machinery utilization has been taken in this project.
F INANCIAL ANALYSIS
(1) Cost of Production (per annum) (Rs.) Total recurring expenditure 4,22,28, Depreciation on building @ 5% 35, Depreciation on plant and m/c @ 10% 85, Interest on total capital 17,21, investment @ 14% Total 4,40,69, Or Say 4,40,69,
(2) Turn Over (per annum) (Rs.) By sale of : (I) Flakes 85050 kg @ 500 kg 4,25,25, (II) De-mentholised 36450 kg 5,83, @ Rs160kg Total 4,83,57,
(3) Profit (per annum) Rs.4,83,57,000–4,40,69,850=Rs. 42, 87, (4) Rate of Return = Profit^ ×^^100 Total capital investment = 42,87,150^ ×^^100 1,22,93, = 35.0 %
(5) Net Profit Ratio = Profit^ ×^^100 Sale = 42,87,150^ ×^^100 4,83,57, = 8.86%
(6) Break-even Point
(i) Fixed Cost (Rs.) a. Depreciation on building @ Rs. 5% 35, b. Depreciation on plant 85, and machinery @ 10% c. Interest on total capital 17,21, investment @ 14% d. 40% of salary 3,86, e. 40% of other expenses 12, Total 22,41,
B.E.P.
= Fixed cost^ ×^^100 Fixed cost + profit = 2241036 ×^^100 23,41,036+ 42,87,
= 2241036 ×^^100 6528186 = 34.3%
A d d r e s s e s o f M a c h i n e r y a n d Equipment Suppliers
- M/s. Wisdoms Scientific Works 10, West Sadar Thana Road, Delhi-
- M/s. Sandeep Instruments and Chemicals 3229, Ranjit Nagar, New Delhi-
- M/s. Blue Star Limited Block 2A, DLF Corporation Park, DLF Qutab Enclave, Phase-II, Gurgaon (Haryana)
- M/s. India Projects and Equipments Pvt. Ltd. D-170, Okhla Ind. Estate, Phase-I, New Delhi- 5. M/s. Fric India Ltd. Jeevan Vihar-3, Parliament Street, New Delhi. 6. M/s. Jindal Refrigeration 26, Netaji Subash Marg, Darya Ganj, New Delhi- 7. M/s. Valcan Laval Ltd. Depodi, Pune-I, (M.S.) 8. M/s. Adair Dut and Co India Pvt. Ltd. 2, Asaf Ali Road, New Delhi- 9. M/s. Chemida (India) Nagabkak Bazar, 347, Grant Road, Mumbai. 10. M/s. Hind Hungh Caccum Co. Pvt. Ltd. 1024, Chord Road, Rajaji Nagar, Bangalore. 11. M/s. Anup Engineering Ltd. Anil Starches Premises, Anil Road, Ahmedabad 12. M/s. A. R. Packaging Systems Ltd. Sarvodaya, 1-10-6/3, Begumpet, Hyderabad - 110016
Addresses of Raw Material Suppliers Mint oil be collected for U.P. Namely from Badaun, Barely, Muradabad, Rampur and Barabanki etc.
