PROJECT REPORT

Of

CUMIN

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Cumin Cleaning & 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
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@[Link]
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

6 Name of the project / business activity proposed : CUMIN CLEANING & PROCESSING UNIT

7 Cost of Project : Rs.23.96 Lakhs

8 Means of Finance
Term Loan Rs.13.57 Lakhs
Own Capital Rs.2.4 Lakhs
Working Capital Rs.7.99 Lakhs

9 Debt Service Coverage Ratio : 2.98

10 Pay Back Period : 5 Years

11 Project Implementation Period : 5-6 Months

12 Break Even Point : 25%

13 Employment : 12 Persons

14 Power Requirement : 20.00 HP

15 Major Raw materials : Cumin seed and packing material

16 Estimated Annual Sales Turnover (Max Capacity) : 193.28 Lakhs

17 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lakhs)

Particulars Amount
Land Own/Rented
Plant & Machinery 14.08
Furniture & Fixtures 1.00
Working Capital 8.88
Total 23.96

MEANS OF FINANCE
Particulars Amount
Own Contribution 2.40
Working Capital(Finance) 7.99
Term Loan 13.57
Total 23.96
 CUMIN CLEANING AND PROCESSING UNIT

Introduction:

Cumin (Cuminum cyminum), commonly known as Jeera, belongs to the Apiaceae

family, it is widely grown in Gujarat, Rajasthan, and parts of Madhya Pradesh and
Uttar Pradesh. In flavoring food, cumin is mainly used. It is also used in medicines
with Ayurvedic.
It is an herbaceous annual plant, with a slender branched stem 20–30 cm tall. The
leaves are 5–10 cm long, pinnate or bipinnate, thread-like leaflets. The flowers are
small, white or pink, and borne in umbels. The fruit is a lateral fusiform or ovoid
achene 4–5 mm long, containing a single seed. Cumin seeds are similar to fennel
and anise seeds in appearance but are smaller and darker in colour.
Uses & Market Potential:

It is a major ingredient of mixed spices powder and curry powder mixes. It is an

ingredient of pickles and chutney mixes. Cumin seeds have an aromatic fragrance
due to alcohol, cuminol. The aromatic oil of cumin seeds is also used for flavoring
curries, liquor, cordials and has great use in perfumery industries. It has medicinal
properties and is used in many Ayurvedic and veterinary medicines as carminative,
stomachic, astringent, and is useful against diarrhea and dyspepsia. Cumin seeds are
very useful in digestive disorders like biliousness, morning sickness, indigestion,
atonic dyspepsia, diarrhea, malabsorption syndrome, and flatulent colic.

Its production is primarily concentrated in Rajasthan, Gujarat, and parts of Uttar

Pradesh in India. In 2011-12, 461160 tonnes of cumin were produced from an area
of 842560 hectares, accounting for 34% and 43% of total seed spice production and
area, respectively. Cumin's current productivity in 2007-08 was 554 kg/ha. During
the 2011-12 fiscal year, India exported 45500 MT worth of cumin seed. Cumin value
added products such as cumin oil and oleoresins were exported in quantities of 2.64
and 23.43 MT in 2008-09, earning Rs. 92.94 and Rs. 223.23 lakh, respectively. The
United Arab Emirates was the largest importer of cumin, accounting for 23% of total
imports, followed by the United States, Egypt, the United Kingdom, and
Bangladesh. Cumin is primarily used for domestic consumption in India, with only
about 10% of the crop exported. The main competitor countries to India with respect
to cumin export are Turkey, Iran, Syria.

Product:
Cumin
Raw Material:
Raw material that are used are Cumin seed and packing material.

Manufacturing Process:

 Raw material procurement

 Vibratory Pre-Cleaning
 De-Stoning
 Magnetic Separation
 Gravity Separation
 Weighing & Packaging

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 1500-2000Sqft.

Cost of Machines:
SR. ITEMS AMOUNT
NO
1 Gravity separator 5 Fan .(Without Motor) 2,60,000.00
2 Vibro Type Sieves with Two Jali, with 2 Nos. Vibro 1,85,000.00
motor and it's Stand.
3 Vibro Type Sieves with Three Jali, with 2 Nos. 2,10,000.00
Vibro motor and it's Stand.
 4 Aspiration system. 45,000.00
5 Cyclone 900 Kice Type 32,000.00
6 Blower 5 hp High Pressar with motor 45,000.00
7 Rotary Air Lock with Gear Motor Set. 30,000.00
8 Vibro Type Destoner with 5 HP Blower and Cyclone 3,10,000.00
With Vibro Motor 0.50 hp x 2 Nos. .
9 Elevator with gear & motor, Hight - 20' foot, 1,40,000.00
5"Bucket
10 Elevator with gear & motor, Hight - 14' foot, 68,000.00
5"Bucket
11 Elevator with gear & motor, Hight - 12' foot, 58,000.00
5"Bucket
12 Demphar with slider Gate. 25,000.00
Total Rs. 14,08,000.00

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 - 3.33 5.32 8.29 12.24
Add: Additions 2.40 - - - -
Add: Net Profit 5.13 6.60 7.96 9.76 11.28
Less: Drawings 4.20 4.60 5.00 5.80 6.50
Closing Balance 3.33 5.32 8.29 12.24 17.02
CC Limit 7.99 7.99 7.99 7.99 7.99
Term Loan 12.06 9.05 6.03 3.02 -
Sundry Creditors 3.38 4.02 4.68 5.37 6.09

TOTAL : 26.76 26.38 26.99 28.63 31.10

APPLICATION OF FUND

Fixed Assets ( Gross) 15.08 15.08 15.08 15.08 15.08

Gross Dep. 2.21 4.10 5.70 7.07 8.24
Net Fixed Assets 12.87 10.98 9.38 8.01 6.84

Current Assets
Sundry Debtors 4.59 5.77 6.79 7.86 9.02
Stock in Hand 7.67 9.15 10.69 12.27 13.94
Cash and Bank 1.63 0.48 0.14 0.49 1.30

TOTAL : 26.76 26.38 26.99 28.63 31.10

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS I II III IV V

A) SALES
Gross Sale 98.33 123.54 145.49 168.48 193.28

Total (A) 98.33 123.54 145.49 168.48 193.28

B) COST OF SALES

Raw Material Consumed 67.50 80.33 93.64 107.45 121.77

Elecricity Expenses 1.34 1.57 1.79 2.01 2.24
Repair & Maintenance 2.46 3.09 3.64 4.21 4.83
Labour & Wages 12.35 15.81 19.44 22.94 27.07
Depreciation 2.21 1.89 1.61 1.37 1.17
Cost of Production 85.86 102.67 120.11 137.98 157.08

Add: Opening Stock /WIP - 4.29 5.13 6.01 6.90

Less: Closing Stock /WIP 4.29 5.13 6.01 6.90 7.85

Cost of Sales (B) 81.57 101.83 119.24 137.09 156.12

C) GROSS PROFIT (A-B) 16.76 21.71 26.25 31.39 37.16

17.04% 17.57% 18.04% 18.63% 19.22%
D) Bank Interest i) (Term Loan ) 1.47 1.20 0.87 0.54 0.21
ii) Interest On Working Capital 0.88 0.88 0.88 0.88 0.88
E) Salary to Staff 7.31 9.35 11.23 12.91 15.75
F) Selling & Adm Expenses Exp. 1.77 3.09 4.36 5.90 6.76

G) TOTAL (D+E+F) 11.43 14.52 17.34 20.22 23.60

H) NET PROFIT 5.33 7.18 8.91 11.17 13.56

5.4% 5.8% 6.1% 6.6% 7.0%
I) Taxation 0.20 0.58 0.94 1.41 2.28

J) PROFIT (After Tax) 5.13 6.60 7.96 9.76 11.28

PROJECTED CASH FLOW STATEMENT

PARTICULARS I II III IV V

SOURCES OF FUND

Own Contribution 2.40 - - - -

Reserve & Surplus 5.33 7.18 8.91 11.17 13.56
Depriciation & Exp. W/off 2.21 1.89 1.61 1.37 1.17
Increase In Cash Credit 7.99 - - - -
Increase In Term Loan 13.57 - - - -
Increase in Creditors 3.38 0.64 0.67 0.69 0.72

TOTAL : 34.88 9.71 11.18 13.23 15.44

APPLICATION OF FUND

Increase in Fixed Assets 15.08 - - - -

Increase in Stock 7.67 1.48 1.54 1.58 1.67
Increase in Debtors 4.59 1.18 1.02 1.07 1.16
Repayment of Term Loan 1.51 3.02 3.02 3.02 3.02
Taxation 0.20 0.58 0.94 1.41 2.28
Drawings 4.20 4.60 5.00 5.80 6.50
TOTAL : 33.24 10.86 11.52 12.89 14.62

Opening Cash & Bank Balance - 1.63 0.48 0.14 0.49

Add : Surplus 1.63 - 1.15 - 0.34 0.34 0.82

Closing Cash & Bank Balance 1.63 0.48 0.14 0.49 1.30
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS I II III IV V

Finished Goods
(15 Days requirement) 4.29 5.13 6.01 6.90 7.85
Raw Material
(15 Days requirement) 3.38 4.02 4.68 5.37 6.09

Closing Stock 7.67 9.15 10.69 12.27 13.94

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Amount Margin(10%) Net

Amount
Stock in Hand 7.67
Less:
Sundry Creditors 3.38
Paid Stock 4.29 0.43 3.86

Sundry Debtors 4.59 0.46 4.13

Working Capital Requirement 7.99

Margin 0.89

MPBF 7.99
Working Capital Demand 7.99
REPAYMENT SCHEDULE OF TERM LOAN 11.0%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

I Opening Balance
Ist Quarter - 13.57 13.57 0.37 - 13.57
Iind Quarter 13.57 - 13.57 0.37 - 13.57
IIIrd Quarter 13.57 - 13.57 0.37 0.75 12.82
Ivth Quarter 12.82 - 12.82 0.35 0.75 12.06
1.47 1.51
II Opening Balance
Ist Quarter 12.06 - 12.06 0.33 0.75 11.31
Iind Quarter 11.31 - 11.31 0.31 0.75 10.56
IIIrd Quarter 10.56 - 10.56 0.29 0.75 9.80
Ivth Quarter 9.80 9.80 0.27 0.75 9.05
1.20 3.02
III Opening Balance
Ist Quarter 9.05 - 9.05 0.25 0.75 8.29
Iind Quarter 8.29 - 8.29 0.23 0.75 7.54
IIIrd Quarter 7.54 - 7.54 0.21 0.75 6.79
Ivth Quarter 6.79 6.79 0.19 0.75 6.03
0.87 3.02
IV Opening Balance
Ist Quarter 6.03 - 6.03 0.17 0.75 5.28
Iind Quarter 5.28 - 5.28 0.15 0.75 4.52
IIIrd Quarter 4.52 - 4.52 0.12 0.75 3.77
Ivth Quarter 3.77 3.77 0.10 0.75 3.02
0.54 3.02
V Opening Balance
Ist Quarter 3.02 - 3.02 0.08 0.75 2.26
Iind Quarter 2.26 - 2.26 0.06 0.75 1.51
IIIrd Quarter 1.51 - 1.51 0.04 0.75 0.75
Ivth Quarter 0.75 0.75 0.02 0.75 0.00
0.21 3.02

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 7.34 8.48 9.57 11.13 12.44

Interest on Term Loan 1.47 1.20 0.87 0.54 0.21

Total 8.81 9.69 10.44 11.67 12.65

REPAYMENT
Repayment of Term Loan 1.51 3.02 3.02 3.02 3.02
Interest on Term Loan 1.47 1.20 0.87 0.54 0.21

Total 2.98 4.22 3.89 3.56 3.22

DEBT SERVICE COVERAGE RATIO 2.96 2.30 2.69 3.28 3.93

AVERAGE D.S.C.R. 2.98

Assumptions:
1. Production Capacity of Cumin Cleaning & 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 14 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
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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,
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