PROJECT REPORT

OF

MORINGA PROCESSING (SEED POWDER)

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Moringa Processing.

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.]

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 MORINGA PROCESSING (SEED POWDER)
1. INTRODUCTION

Moringa oleifera is a multipurpose, medium or small-sized tree, from regions of northwest India
and indigenous to many parts of Asia, Africa, and South America. Its pods have been used to
remove organics as an inexpensive and reliable sorbent. It can be used as a coagulant in the
treatment of water. It's a pure organic polymer that's non-toxic. According to the World Health
Organization, drinking water must be processed to eliminate impurities and bacteria in order to
follow quality standards of 5 nephelometric turbidity units (NTU) for drinking water. In most rural
communities in many developing countries, the use of surface and groundwater for drinking and
domestic purposes has become commonplace. Since this water includes dissolved and suspended
solids, it normally needs treatment before use. Coagulation, a water treatment procedure that
involves the destabilization of colloidal particles to form flocs that can then be easily extracted,
can be used to extract these pollutants from this source of water. The addition of positively charged
ions known as coagulants to water containing colloidal particles, which are almost always
negatively charged, achieves this destabilization. Chemical coagulants have been used in water
treatment for decades to remove suspended solids and reduce turbidity, as well as to kill bacteria
and viruses. Aluminum sulfate, ferrous sulfate, and ferric sulfate are the most common chemical
coagulants. Chemical coagulants are used in water and wastewater treatment to allow impurities
in colloidal forms to bind to each other as they come into contact, forming flocs that can then be
easily removed. Chemical coagulants, on the other hand, are not readily accessible in developed
countries, can be very costly for people living in remote rural areas in developing countries, and
can have negative public health consequences if not used properly. As a result, the use of natural
coagulants by plants is a feasible alternative to chemical coagulants. Extracts from plants like
moringa oleifera have been shown to be effective in removing suspended solids, reducing turbidity,
softening hard water, and reducing slurry output as compared to chemical coagulants.

2. MARKET POTENTIAL

The moringa ingredients market will rise due to the increasing demand for food supplements as a
result of rising nutrition awareness, a growing geriatric population, a hectic lifestyle, and rising
disposable income. The industry is expected to expand as people become more aware of the
medicinal benefits of moringa-based products. Moringa bulbs, seeds, pods, leaves, gum, and bark
have properties that help to alleviate vitamin and mineral deficiencies, maintain normal blood
glucose levels, support a healthy cardiovascular system, immune system, neutralize free radicals,
and enrich anaemic blood. They can help with malnutrition, lactating mothers, general weakness,
depression, menopause, osteoporosis, and arthritis, among other things. The drumstick tree, also
known as the miracle tree, the ben oil tree, or the horseradish tree, is Moringa oleifera. One of the
main factors for the market's growth is a rise in customer perception of the plant's health benefits.
It has antifungal, antiviral, antidepressant, and anti-inflammatory properties that help to cure a
variety of ailments.

It can also be easily grown at a low cost in tropical and subtropical regions, resulting in the
expanded use of the plant in a variety of applications. It's also one of the most effective treatments
for malnutrition in children under the age of three. Given all of the above reasons, market demand
for these items is growing. In 2018, the global moringa products market was worth USD 5.5 billion,
and it is expected to develop at a healthy CAGR over the forecast period. Moringa is a balanced
super food that resembles a "vegetable tree" and is rich in minerals and vitamins. It is thought to
have various health and beauty advantages, as well as the ability to help prevent and cure diseases.
Moringa is available in a variety of ways, including raw moringa, moringa powder for food
supplements, tea, and oil. Several factors are driving the industry, including an increase in the
demand for dietary supplements, increased public health awareness, and a change in emphasis
toward organic medicine.

3. INDUSTRIAL SCENERIO

The market is segmented by commodity into leaf powder, tea, oil, and seeds. In 2018, leaf powder
had the highest market share, accounting for more than 30.0 percent of the total. One of the major
factors driving the segment's growth is the rising demand for dietary supplements as part of a daily
diet. Leaf powder is used to make useful medicines that aid in the treatment of a number of skin
conditions. Veg India Exports, Green India, Ayuritz, and Mother Hubs are some of the major
players in this business. Organic India, Botanical Natural Goods, Moringa Connect, MoSagri, and
Moringa Malawi are some of the other major players. Due to the limited number of companies and
high demand for the product, moderate entry barriers are expected to foster fierce competition
among major manufacturers.

The growing demand for dietary supplements and organic-based products that have no negative
effects on the skin and body is driving demand for moringa, putting pressure on various players.
Several activities are undertaken by the industry's leading producers, such as expansions, mergers,
and acquisitions, and product and technological advancement, which help to define the sector.
Moringa has been discovered to be capable of producing a form of medication that can postpone
diabetes for 10-15 years, according to a recent report. The majority of pharmaceutical companies
are conducting comprehensive research to establish different types of moringa-based medicines.

To gain the most market share, leading companies are widening their geographical reach. Plant-
based vitamins and herbal cosmetics are more appealing to consumers. Manufacturers are likely
to concentrate on new product innovation, appealing specifically to the target market, taking into
account all of the above factors.
 4. PRODUCT DESCRIPTION

4.1 PRODUCT USES

Moringa tree seeds have unusual water purification properties. Unwanted particulates can
be separated from water regimenting impurities by using the seed extract. They may also
be used as an antimicrobial treatment, as unprocessed seed powder can filter out over 90%
of bacteria from raw water.

Other uses of moringa seed power

 Lowers Blood Pressure
 Acts as a sleep aid
 Boosts energy
 Lowers Blood Sugar level
 High in fiber
 Lowers Cholesterol
 Promotes healthy

4.2 RAW MATERIAL REQUIREMENT

 Moringa dry fruit are required

 Packaging material

4.3 MANUFACTURING PROCESS

Harvesting
When producing seed for planting or for oil extraction, allow the pods to dry and turn brown on
the tree. In some cases, it may be necessary to prop up a branch that holds many pods to prevent it
from breaking off. Harvest the pods before they split open and seeds fall to the ground.
Drying
Moringa fruit pods are dried to an average moisture content of about 10% to 15% during the
process. One of the traditional methods of drying is sun drying after harvesting.

Threshing
Seed are extracted from the pod after proper drying. Moringa seeds are obtained from the pods of
the Moring pod threshing.

Storage of seed
After threshing the seed are stored at room temperature for further processing

Hulling of seed

Discolored and diseased seeds are discarded before hulling the seed. Shell seeds (remove seed
coat) to obtain clean seed kernels.

Grinding the kernels

Kernels are grinded to make powder farm. Some of the major industries are extract oil before
grinding them. After removing the oil, the seed cake can still be used to purify water. Crush the
seed cake a fine powder and sift the powder through a screen or small mesh.

Packaging
After grinding the seed the fine powder are packed in appropriate packages and stored in ambient
temperature.

Processing to clean water with moringa seeds

 Determine the number of seed kernels needed based on the volume and turbidity of the water;
1 seed kernel treats 1 liter of water.
 To make a paste, combine seed powder with a small amount of clean water.
 To activate the coagulant properties and form a solution, combine the paste with 250 mL of
clean water in a bottle and shake for 1 minute.
 Filter this solution (to extract insoluble materials) through a muslin cloth or fine mesh screen
and into the water to be cleaned.
 Stir-treated water quickly for at least 1 minute, then slowly for 5-10 minutes (15-20 rotations
per minute).
 Allow at least 1-2 hours for the treated water to remain undisturbed.
 When the particles and contaminants have settled to the bottom, the clean water can be
carefully poured off.
 This pure water can then be sterilized or filtered to make it perfectly safe to drink.
 50-150 mg of ground Moringa seed treats one liter of water, depending on how clear the water
is.

The theory behind water purification using moringa seed

Moringa oleifera seeds act as a coagulant and an antimicrobial agent, treating water on two levels.
Moringa is thought to function as a coagulant because of its positively charged, water-soluble
proteins, which combine with negatively charged particles (silt, clay, bacteria, toxins, etc.) and
allow the resulting "flocs" to settle to the bottom or be filtered out. The antimicrobial aspects of
Moringa continue to be researched. The findings suggest that recombinant proteins can remove
microorganisms through coagulation as well as function as direct microorganism growth
inhibitors. Although further research into the essence and characteristics of these components is
being done, it is widely agreed that treatments with Moringa solutions can eliminate 90-99.9% of
impurities in water.

4.4 YIELD OF PRODUCT/PRODUCTION RATIO

The basis for calculation of production capacity is on single shift basis, with 80-90% efficiency
and if 7-8 labours will be working for single shift basis then the total production capacity will be
approx. 500 kg seed powder per Shift.

(Note: 20% seed oil also obtain from moringa seed)

 5. PROJECT COMPONENTS

5.1 Land /Civil Work

The land require for this manufacturing unit will be approx. around 1000-1200 square feet.

We have not considered the cost of Land purchase & Building Civil work in the project. It is
assumed that land & building will be on rent & approx. rental of the same will be Rs. 20,000-
25,000 per month.

5.2 Plant & Machinery

Seed shelling machine:
This Sheller machine is used to remove the moringa seed code or separating the kernels.

Oil Extraction Machine: Moringa seed kernels contain about 20% oil, so seed oil is extracted
from them to increase income. This machine is used to extract oil from moringa seed kernels.
(optional)
Hammer Mill for grinding:

The aim of a hammer mill is to compress aggregate material (seed cake) into smaller pieces using
repeated blows from small hammers.

Sifter machine: Sifter is used for screening, sieving of ground powder of moringa seed prior to
final packaging.
Packaging machine:

This machine is used for final filling and packaging of fine moringa powder in suitable packages.

Equipment and Tools-

 Silos: This Equipment is class of storage Equipment which are specifically designed for dry
grain raw material of small granule composition. Usually used to store grains but can also be
used to store cement & aggregate.
 Bucket Elevator: A bucket lift is also a grain leg and is a device for vertical transport of
materials.

 Belt conveyers: Belt conveyors are most commonly used in transportation of bulk materials
 Material handling equipment: SS Utensils, trolley, bins Hand Gloves etc. Miscellaneous
tools are required during processing.

S.N. Particulars Quantity/Amount

1 Seed Shelling machine 2,50,000

2 Hammer mill for grinding 4,55,000

3 Sifter machine 1,90,000

4 Packaging machine 2,00,000

5 Other equipment’s 50,000

Sub-total Amount 11,45,000

GST @ 18% 2,06,100

Total 13,51,100

Note: This machine is only for the moringa seed powder extraction unit.
 5.3 Power Requirement

For whole manufacturing plant requires three phase AC power supply. The machineries and
other electrical utilities may require up to 25-30 HP power, for above mentioned capacity.

5.4 Manpower Requirement

Manpower required for this manufacturing unit is depend on the land, type of
manufacturing unit etc. For this unit around 7-8 people will be required.

5.5 Other Utilities

General electrical apparatus, Water, telephone etc.

6. LICENSE & APPROVALS

 FSSAI registration certificate.

 MSME Udyam online registration.
 GST Registration
 NOC from fire safety board.
 Trademark (optional)

7. SWOT ANALYSIS

Strengths

 Health benefit of moringa product

 Oil recovery percentages
 Scope for market price increases up to 25-30 % for better quality products.

Weakness-

 Linkages between industry and research and development (R&D)

 Few medium sized millers.
 There is a lack of customized R&D in the proximity of these Industries.
Opportunities-

 Utilization of moringa oil and seed powder

 The potential of this industry is high
 Opportunities to value addition

Threats-

 Higher uncertainty
 Direct competition
 Availability of raw material
 New product in the market
PROJECTED PROFITABILITY STATEMENT (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Capacity Utilisation % 30% 35% 40% 45% 50%
SALES
MORINGA SEED POWDER 99.18 122.68 144.60 167.59 191.96

Total 99.18 122.68 144.60 167.59 191.96

COST OF SALES
Raw material cost 67.50 81.11 95.40 110.70 126.75
Electricity Expenses 4.20 5.04 6.05 7.26 8.71
Depreciation 2.13 1.81 1.54 1.31 1.11
Wages & labour 9.72 10.69 11.76 12.94 14.23
Repair & maintenance 0.50 1.84 2.17 2.51 2.88
Consumables 1.24 1.53 1.81 2.09 2.40
Packaging cost 1.98 2.33 2.89 3.35 3.84
Cost of Production 87.27 104.36 121.62 140.16 159.92
Add: Opening Stock ‐ 3.31 4.09 4.82 5.59
Less: Closing Stock 3.31 4.09 4.82 5.59 6.40
Cost of Sales 83.96 103.57 120.89 139.40 159.11
GROSS PROFIT 15.22 19.11 23.71 28.19 32.85
Salary to Staff 6.00 6.60 7.26 7.99 8.78
Interest on Term Loan 1.26 1.11 0.80 0.48 0.17
Interest on working Capital 0.66 0.66 0.66 0.66 0.66
Rent 3.00 3.30 3.63 3.99 4.39
Selling & Administration Expenses 1.74 3.99 5.06 5.87 6.72
TOTAL 12.66 15.66 17.41 18.99 20.73
NET PROFIT 2.56 3.45 6.30 9.20 12.12
Taxation 0.13 0.59 1.39
PROFIT (After Tax) 2.56 3.45 6.17 8.61 10.74
PROJECTED BALANCE SHEET (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Liabilities
Capital
Opening Balance 3.16 4.61 8.28 10.89
Add:‐ Own Capital 2.09
Add:‐ Retained Profit 2.56 3.45 6.17 8.61 10.74
Less:‐ Drawings 1.50 2.00 2.50 6.00 7.00

Closing Balance 3.16 4.61 8.28 10.89 14.62

Term Loan 11.41 8.56 5.70 2.85 ‐
Working Capital Limit 6.00 6.00 6.00 6.00 6.00
Sundry Creditors 3.38 4.60 5.41 6.27 7.18
Provisions & Other Liabilities 0.40 0.60 0.72 0.86 1.04
TOTAL : 24.34 24.36 26.11 26.88 28.84
Assets
Fixed Assets ( Gross) 14.26 14.26 14.26 14.26 14.26
Gross Depriciation 2.13 3.94 5.47 6.78 7.90
Net Fixed Assets 12.13 10.33 8.79 7.48 6.36

Current Assets
Sundry Debtors 5.29 5.73 6.75 7.82 8.96
Stock in Hand 5.56 6.79 8.00 9.28 10.62
Cash and Bank 0.61 0.51 0.82 0.80 0.90
Loans and advances/other current assets 0.75 1.00 1.75 1.50 2.00
TOTAL : 24.34 24.36 26.11 26.88 28.84
PROJECTED CASH FLOW STATEMENT (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
SOURCES OF FUND
Own Margin 2.09
Net Profit 2.56 3.45 6.30 9.20 12.12
Depriciation & Exp. W/off 2.13 1.81 1.54 1.31 1.11
Increase in Cash Credit 6.00 ‐ ‐ ‐ ‐
Increase In Term Loan 12.83 ‐ ‐ ‐ ‐
Increase in Creditors 3.38 1.22 0.81 0.87 0.91
Increase in Provisions & Other liabilities 0.40 0.20 0.12 0.14 0.17

TOTAL : 29.39 6.68 8.77 11.52 14.32

APPLICATION OF FUND
Increase in Fixed Assets 14.26
Increase in Stock 5.56 1.24 1.21 1.28 1.35
Increase in Debtors 5.29 0.44 1.02 1.07 1.14
Increase in loans and advances 0.75 0.25 0.75 ‐ 0.25 0.50
Repayment of Term Loan 1.43 2.85 2.85 2.85 2.85
Drawings 1.50 2.00 2.50 6.00 7.00
Taxation ‐ ‐ 0.13 0.59 1.39
TOTAL : 28.78 6.77 8.46 11.54 14.22

Opening Cash & Bank Balance ‐ 0.61 0.51 0.82 0.80

Add : Surplus 0.61 ‐0.09 0.31 ‐0.02 0.10
Closing Cash & Bank Balance 0.61 0.51 0.82 0.80 0.90
CALCULATION OF D.S.C.R

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

CASH ACCRUALS 4.69 5.26 7.71 9.92 11.85

Interest on Term Loan 1.26 1.11 0.80 0.48 0.17
Total 5.95 6.37 8.51 10.40 12.02

REPAYMENT
Instalment of Term Loan 1.43 2.85 2.85 2.85 2.85
Interest on Term Loan 1.26 1.11 0.80 0.48 0.17

Total 2.69 3.96 3.65 3.34 3.02

DEBT SERVICE COVERAGE RATIO 2.21 1.61 2.33 3.12 3.98

AVERAGE D.S.C.R. 2.65
 REPAYMENT SCHEDULE OF TERM LOAN
Interest 11.00%
Closing
Year Particulars Amount Addition Total Interest Repayment Balance
ist Opening Balance ‐
1st month 12.83 12.83 ‐ ‐ 12.83
2nd month 12.83 ‐ 12.83 0.12 ‐ 12.83
3rd month 12.83 ‐ 12.83 0.12 ‐ 12.83
4th month 12.83 ‐ 12.83 0.12 ‐ 12.83
5th month 12.83 ‐ 12.83 0.12 ‐ 12.83
6th month 12.83 ‐ 12.83 0.12 ‐ 12.83
7th month 12.83 ‐ 12.83 0.12 0.24 12.60
8th month 12.60 ‐ 12.60 0.12 0.24 12.36
9th month 12.36 ‐ 12.36 0.11 0.24 12.12
10th month 12.12 ‐ 12.12 0.11 0.24 11.88
11th month 11.88 ‐ 11.88 0.11 0.24 11.65
12th month 11.65 ‐ 11.65 0.11 0.24 11.41
1.26 1.43
2nd Opening Balance
1st month 11.41 ‐ 11.41 0.10 0.24 11.17
11.17 ‐ 11.17 0.10 0.24 10.93
10.93 ‐ 10.93 0.10 0.24 10.70
10.70 ‐ 10.70 0.10 0.24 10.46
10.46 ‐ 10.46 0.10 0.24 10.22
10.22 ‐ 10.22 0.09 0.24 9.98
7th month 9.98 ‐ 9.98 0.09 0.24 9.75
8th month 9.75 ‐ 9.75 0.09 0.24 9.51
9th month 9.51 ‐ 9.51 0.09 0.24 9.27
10th month 9.27 ‐ 9.27 0.08 0.24 9.03
11th month 9.03 ‐ 9.03 0.08 0.24 8.79
12th month 8.79 ‐ 8.79 0.08 0.24 8.56
1.11 2.85
3rd Opening Balance
1st month 8.56 ‐ 8.56 0.08 0.24 8.32
2nd month 8.32 ‐ 8.32 0.08 0.24 8.08
3rd month 8.08 ‐ 8.08 0.07 0.24 7.84
4th month 7.84 ‐ 7.84 0.07 0.24 7.61
5th month 7.61 ‐ 7.61 0.07 0.24 7.37
6th month 7.37 ‐ 7.37 0.07 0.24 7.13
7th month 7.13 ‐ 7.13 0.07 0.24 6.89
8th month 6.89 ‐ 6.89 0.06 0.24 6.66
9th month 6.66 ‐ 6.66 0.06 0.24 6.42
10th month 6.42 ‐ 6.42 0.06 0.24 6.18
11th month 6.18 ‐ 6.18 0.06 0.24 5.94
12th month 5.94 ‐ 5.94 0.05 0.24 5.70
0.80 2.85
4th Opening Balance
1st month 5.70 ‐ 5.70 0.05 0.24 5.47
2nd month 5.47 ‐ 5.47 0.05 0.24 5.23
3rd month 5.23 ‐ 5.23 0.05 0.24 4.99
4th month 4.99 ‐ 4.99 0.05 0.24 4.75
5th month 4.75 ‐ 4.75 0.04 0.24 4.52
6th month 4.52 ‐ 4.52 0.04 0.24 4.28
7th month 4.28 ‐ 4.28 0.04 0.24 4.04
8th month 4.04 ‐ 4.04 0.04 0.24 3.80
9th month 3.80 ‐ 3.80 0.03 0.24 3.57
10th month 3.57 ‐ 3.57 0.03 0.24 3.33
11th month 3.33 ‐ 3.33 0.03 0.24 3.09
12th month 3.09 ‐ 3.09 0.03 0.24 2.85
0.48 2.85
5th Opening Balance
1st month 2.85 ‐ 2.85 0.03 0.24 2.61
2nd month 2.61 ‐ 2.61 0.02 0.24 2.38
3rd month 2.38 ‐ 2.38 0.02 0.24 2.14
4th month 2.14 ‐ 2.14 0.02 0.24 1.90
5th month 1.90 ‐ 1.90 0.02 0.24 1.66
6th month 1.66 ‐ 1.66 0.02 0.24 1.43
7th month 1.43 ‐ 1.43 0.01 0.24 1.19
8th month 1.19 ‐ 1.19 0.01 0.24 0.95
9th month 0.95 ‐ 0.95 0.01 0.24 0.71
10th month 0.71 ‐ 0.71 0.01 0.24 0.48
11th month 0.48 ‐ 0.48 0.00 0.24 0.24
12th month 0.24 ‐ 0.24 0.00 0.24 ‐
0.17 2.85
DOOR TO DOOR 60 MONTHS
MORATORIUM PERIOD 6 MONTHS
REPAYMENT PERIOD 54 MONTHS
 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
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internet, experts, suppliers and various other sources. The actual cost of the project
or industry will have to be taken on case to case basisconsidering specific requirement
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