Bamboo Shoot Products

PROJECT REPORT
Of
BAMBOO SHOOT PRODUCTS
(PICKLE AND CANNED SHOOT)
PURPOSE OF THE DOCUMENT
This particular pre-feasibility is regarding Bamboo shoot products.
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
BAMBOO SHOOT PICKLE AND CANNED BAMBOO SHOOT
INTRODUCTION
One extensive use of bamboo is the usage of young shoots as food. Bamboo
shoots are the young, edible bamboo plants that have just emerged from the
ground. Bamboo shoots are low in fat and calories but rich in fibre with about
90% water. Fresh shoots have a crisp and sweet flavour with limited shelf life
and have to be sold immediately. The peak availability period is June to
October. The shoots are usually harvested when they attain the height of 15-
16 cm.
Bamboo shoot is consumed either raw or processed because of its exotic

taste and flavour. Many nutritious and active materials-such as vitamins,
amino acids and anti-oxidants such as flavones, phenols and steroids are
present in the bamboo shoots. They are valuable in pharmaceutical and food
processing industries and can be processed into beverages, medicines,
additives or health foods.
Being a lesser-known food product, bamboo shoot processing has potential to

be developed as an innovative and promising enterprise.
Considering the potential market opportunity of such units, the present detail
project report has been developed. The main objective of such initiative is to
productively utilize the abundantly available resources of the local area and to
enable uninterrupted supply of the products to market throughout the year.
PROJECT DESCRIPTION
The proposed project is that of setting up of a Bamboo Shoot Processing unit

at suitable location.
The key products of the proposed project are as follows;
 Bamboo Shoot Pickle

 Canned Bamboo Shoot
Bamboo shoots are gaining popularity among the people all over the world.
Despite huge scope of value addition, the preparation of various bamboo
shoot based products is traditional, local and unorganized. This calls for
development of appropriate technologies and enterprises for preservation of
bamboo shoots in different forms. It will not only address the economic and
ecological aspects related to bamboo but also the food security and nutritional
concerns of the region.
The proposed project would procure the raw materials locally. After
processing, the products would be supplied to the market through distributors/
wholesalers/retailers.
MARKET PROSPECT
Bamboo shoots either processed or raw, have a high demand in the markets.
There is a ready market as there are very few processing units whereas
demand is increasing. Apart from individual households, processed bamboo
shoots have very good demand from restaurants, caterers, other caterers etc.
Product can be sold through provisional stores and super markets in
consumer packs and to bulk buyers in large packing.
The NE region being the largest producer of bamboos in India has a bright
prospect for bamboo shoot industry but presently bamboo shoot production is
predominantly for fulfilling the local needs only.
The local bamboo shoot industry if properly established will not only help in
socioeconomic upliftment of the region but also generate huge income for the
country. But effective marketing strategies should be formulated to extract
maximum profits by making bamboo shoot products available to many
potential customers within and outside the country.
The proposed business may utilise media such as broadcast, newspapers

and also social network platforms at certain interval of time to introduce the
products and also attract more customers. Placement of the product at
strategic outlets and publicity in local media would boost sales. It may also
carry door to door services in the initial years to introduce the product and
attract more customers.
Marketing plan of the proposed project may include good quality

maintenance, promotional campaign like offering special discounts, referrals,
advertisement and tying up with buying houses.
TECHNOLOGICAL PROCESS
The process flow diagram is as follows:
BAMBOO SHOOT PICKLE CANNING OF BAMBOO

SHOOT
PEELING/WASHING/SLICING
PEELING/WASHING/SLICING
DRYING GRADING
CURING IN SALT BRINING AND DRAINING
ADDING SPICES
STERILIZATION
MIXING WITH OIL AND VINEGAR

COOLING
SEALING/LABELING/PACKING SEALING/LABELING/PACKING
Bamboo Shoot Pickle: Bamboo shoots Pickle processing starts with

thorough washing followed by peeling off the skin, shredding, slicing and
cutting into small pieces. Next, they are boiled for about 10 min to remove
bitterness and unwanted matter. This is followed by storing in brine solution
with 5% salt and 1% citric acid. After that, necessary ingredients and oil are
added and mixed thoroughly before packaging in suitable jars. The process
flow diagram is as follows:
Canning of Bamboo Shoot: High moisture content of bamboo shoots makes

them prone to growth of undesirable micro-organisms. Process of canning is
effective in abating rancidity and preventing the growth of micro-organisms in
bamboo shoots, thus preventing the products for a longer period of time.
Fresh bamboo shoots are cut from head and tail. After chopping, slicing and
grading, the bamboo shoots are boiled, drained and canned. Salt solution is
added to the cans and is kept to evaporate. Cans are sealed and are
processed through retort at a temperature of 100-21230-degree C. After
cooling of cans, labelling and packing is done.
QUALITY CONTROL AND STANDARDS
The Containers made of plastic materials should conform to the following

Indian Standards Specification, used as appliances or receptacles for packing
or storing whether partly or wholly, food articles namely;
(i) IS : 10146 (Specification for Polyethylene in contact with foodstuffs);

(ii) IS : 10142 (Specification for Styrene Polymers in contact with foodstuffs);
(iii) IS : 10151 (Specification for Polyvinyl Chloride (PVC), in contact with
foodstuffs);
(iv) IS : 10910 (Specification for Polypropylene in contact with foodstuffs);
(v) IS : 11434 (Specification for Ionomer Resins in contact with foodstuffs);
General packaging requirements for canned products;
(i) All containers shall be securely packed and sealed.

(ii) The exterior of the cans shall be free from major dents, rust, perforations
and seam distortions and
(iii) Cans shall be free from leaks.
FSSAI LICENSE: FSSAI License is issued by the Food Safety and Standards
Authority of India (FSSAI), Ministry of Family Health & Welfare, Government
of India. Application to commence a food business must be made to the
FSSAI in the prescribed format. Based on the application and supporting
documents, FSSAI will accord approval. The Food Safety and Standards
(Licensing and Registration of Food Businesses) Regulations 2011 introduced
to improve the hygiene and quality of food has brought about tremendous
changes in the food industry. As per the Act, no person shall commence or
carry on any food business except under a FSSAI license or FSSAI

registration. Therefore, any food manufacturing or processing or packaging or
distributing entity is now required to obtain a FSSAI License or Registration.
POLLTUION CONTROL: There is no major pollution problem associated with

this industry except for disposal of waste which should be managed
appropriately. However, waste water resulting from washing of ginger & lime
treated ginger water may be safely dispersed over a large area of land for
irrigation purpose. The promoter is advised to take "No Objection Certificate"
from the State Pollution Control Board.
EFFLUENT DISPOSAL: Disposal of any effluent out of the project unit should
be treated with recycling facility or dumped in such a way that these does not
cause hazard in the vicinity of the site.
ENERGY CONSERVATION: Proper care should be taken in running the

machineries and equipment to avoid over run and high electricity
consumption. The machineries selected for the plant should be most energy
efficient for economical production.
CONSUMABLES, POWER AND UTILITY
The major consumables required are as follows;

1. Raw Bamboo Shoot
2. Ingredients like Salt, Mustard Seed, Mustard Oil, Spices, Vinegar and
Preservatives.
3. Packaging Materials
POWER:
The total requirement of power for the project is 15 KW.

UTILITY:
WATER: Constant flow of water would be necessary in the operation of the

plant. Water would be obtained from bore well and can be stored in an
overhead tank, from where it will be supplied to the required areas. Process
water should be free of mud and suspended particles. It should be available at
a pressure of 3 Kg/sq.cm.
OTHER UTILITIES: Other utilities includes LPG cylinders and fuel those
should be locally available
INSTALLED CAPACITY
In assessing the proposed plant capacity, due consideration has been given
to technological and financial factors, marketing considerations, availability of
consumables, infrastructure facilities and economic viability. The detailed
requirement of the plant and machineries to achieve the plant capacity is
assessed by the unit technician. While arriving at the requirement of various
type of equipment and machinery required for the unit, due considerations has
been given to the following points.
a) Minimum Wastage
b) High Productivity
c) Maximum flexibility in operation
d) Adequate stock by provision wherever necessary
The installed production capacity of the unit per annum is as follows;
Bamboo Shoot Pickle - 100 Ton

Canned Bamboo Shoot - 150 Ton
For the purpose of carrying out this economic viability of the proposed project,
it is assumed that the plant will operate at following efficiencies during the first
5(Five) years.@50% In first year with increase of 10% PA and so on.
BASIS AND PRESUMPTIONS
 While deriving figures and projections in this Project report, following Basis
and Presumptions have been made.
 The project is based on a single shift basis and 300 days of working
schedule in a year, working for 8 hours a day, 25 days a month.
 The project cost and other projections etc. have been made on present
market conditions and the sources available within our sources only and
therefore it may vary on account of market fluctuations and with different
suppliers and qualities.
 The cost of machinery and equipment/materials indicated refer to a
particular make and the prices are approximate to these prevailing at the
time of preparation of this report.
 Power rate is assumed at Rs.8.00 per unit and monthly fixed rental charges.
 Water would be made available through bore well facility at the project site.
 Manpower requirement for the project has been planned considering the
size of the unit.
 Interest rates considered is 11.50% on term loan and Working capital loan
for financial assistance.
 For repayment, a period of 5 years is planned with moratorium period of one
year.
 Insurance charges have been considered Lump Sum.
 Repair and maintenance have been calculated at reasonably.
 Depreciation shown has been calculated on Straight Line Method.
 At the plant site, availability of unskilled labour is not a problem. Skilled and
unskilled labour can be recruited for operating the plant. Initial training will
be required for smooth and efficient running of the plant. It is felt that the
skilled manpower available locally having some experience in operation can
be recruited to satisfy the manpower need.
 Project would be set up at a site that is well connected by road and there is
adequate supply of power and water.
PROJECT AT A GLANCE
1 Name of the Entreprenuer XXXXXXX
2 Constitution (legal Status) : XXXXXXX
3 Father's/Spouce's Name XXXXXXXX
4 Unit Address : XXXXXXXX
Taluk/Block:
District : XXXXX
Pin: XXXXX State:
E-Mail : XXXXX
Mobile XXXXX
5 Product and By Product : Bamboo pickle and canned bamboo shoot
6 Name of the project / business activity proposed : Bamboo pickle and canned bamboo shoot
7 Cost of Project : Rs20.00lac
8 Means of Finance
Term Loan Rs.12.63 Lacs
KVIC Margin Money - As per Project Eligibility
Own Capital Rs.2 Lacs
Working Capital Rs.5.37 Lacs
9 Debt Service Coverage Ratio : 4.37
10 Pay Back Period : 5 Years
11 Project Implementation Period : 8 Months
12 Break Even Point : 25%
13 Employment : 7 Persons
14 Power Requirement : 15.00 HP
15 Major Raw materials : Bamboo shoots
16 Estimated Annual Sales Turnover : 91.20 Lacs
16 Detailed Cost of Project & Means of Finance
COST OF PROJECT : (Rs. In Lacs)

Particulars Amount
Land Leased/Owned
Building & Civil Work (2000Sq Ft) 5.00
Plant & Machinery 7.55
Furniture & Fixtures 0.73
Pre-operative Expenses 0.75
Working Capital Requirement 5.97
Total 20.00
MEANS OF FINANCE :
Particulars Amount
Own Contribution @10% 2.00
Term Loan 12.63
Working Capital Finance 5.37
Total 20.00
General Special
Beneficiary's Margin Monery 10% 5%
(% of Project Cost)
PLANT & MACHINERY
PARTICULARS QTY. RATE AMOUNT IN RS.

1 Washing Tanks of 1000 Litre Capacity 2
2 Slicing Machine 1
3 Boiler with accessories 1
5 Mixer/Grinder 2
6 Bottle Washing and Filling Machine 1
7 Cap Sealing Machine 1
8 Automatic Form Fill and Sealing Machine 1
9 Burner Stove 1 650,000.00
SS Utensils, Weighing Scales, Hand Gloves,
10 MiscellaneousTools and Equipment LS
80,000.00
11 Testing Equipment LS 25,000.00
Total 755,000.00
PROJECTED BALANCE SHEET
PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR
SOURCES OF FUND
Capital Account 2.00 2.00 2.00 2.00 2.00

Retained Profit 7.53 17.58 30.94 47.49 67.11
Term Loan 12.63 9.47 6.31 3.16 0.48

Cash Credit 5.37 5.37 5.37 5.37 5.37
Sundry Creditors 3.43 4.11 4.80 5.48 6.17
Provisions & Other Liab 0.36 0.40 0.44 0.48 0.53
TOTAL : 31.32 38.93 49.85 63.98 81.65
APPLICATION OF FUND
Fixed Assets ( Gross) 13.28 13.28 13.28 13.28 13.28

Gross Dep. 1.67 3.15 4.44 5.55 6.52
Net Fixed Assets 11.61 10.13 8.84 7.73 6.76
Current Assets
Sundry Debtors 2.13 2.67 3.11 3.56 4.01
Stock in Hand 7.27 8.72 10.17 11.62 13.08
Cash and Bank 7.81 14.67 24.70 37.74 54.14
Deposits & Advances 2.50 2.75 3.03 3.33 3.66
TOTAL : 31.32 38.93 49.85 63.98 81.65
- - - - -
PROJECTED PROFITABILITY STATEMENT
A) SALES
Gross Sale 91.20 114.24 133.44 152.64 171.84
Total (A) 91.20 114.24 133.44 152.64 171.84
B) COST OF SALES
Raw Mateiral Consumed 68.50 82.20 95.90 109.60 123.30

Elecricity Expenses 1.07 1.29 1.50 1.72 1.93
Repair & Maintenance - 1.14 1.33 1.53 1.72
Labour & Wages 5.54 6.10 6.71 7.38 8.12
Depreciation 1.67 1.48 1.29 1.12 0.97
Consumables and Other Expenses 2.74 3.43 4.00 4.58 5.16
Cost of Production 79.52 95.64 110.74 125.92 141.19
Add: Opening Stock /WIP - 3.84 4.61 5.38 6.14

Less: Closing Stock /WIP 3.84 4.61 5.38 6.14 6.91
Cost of Sales (B) 75.68 94.87 109.97 125.15 140.43
C) GROSS PROFIT (A-B) 15.52 19.37 23.47 27.49 31.41

17% 17% 18% 18% 18%
D) Bank Interest (Term Loan ) 1.09 1.32 0.95 0.59 0.23
Bank Interest ( C.C. Limit ) 0.54 0.54 0.54 0.54 0.54
E) Salary to Staff 3.70 4.07 4.47 4.92 5.41
F) Selling & Adm Expenses Exp. 1.82 2.28 2.67 3.05 3.44
TOTAL (D+E) 7.15 8.20 8.63 9.10 9.62
H) NET PROFIT 8.37 11.17 14.84 18.39 21.80
I) Taxation 0.84 1.12 1.48 1.84 2.18
J) PROFIT (After Tax) 7.53 10.05 13.36 16.55 19.62

PROJECTED CASH FLOW STATEMENT
SOURCES OF FUND
Share Capital 2.00 -

Reserve & Surplus 8.37 11.17 14.84 18.39 21.80
Depriciation & Exp. W/off 1.67 1.48 1.29 1.12 0.97
Increase in Cash Credit 5.37 - - - -
Increase In Term Loan 12.63 - - - -
Increase in Creditors 3.43 0.69 0.69 0.69 0.69
Increase in Provisions 0.36 0.04 0.04 0.04 0.05
TOTAL : 33.82 13.37 16.85 20.23 23.50
APPLICATION OF FUND
Increase in Fixed Assets 13.28 - - - -

Increase in Stock 7.27 1.45 1.45 1.45 1.45
Increase in Debtors 2.13 0.54 0.45 0.45 0.45
Increase in Deposits & Adv 2.50 0.25 0.28 0.30 0.33
Repayment of Term Loan - 3.16 3.16 3.16 2.68
Taxation 0.84 1.12 1.48 1.84 2.18
TOTAL : 26.01 6.51 6.82 7.20 7.09
Opening Cash & Bank Balance - 7.81 14.67 24.70 37.74
Add : Surplus 7.81 6.85 10.03 13.03 16.41
Closing Cash & Bank Balance 7.81 14.67 24.70 37.74 54.14
COMPUTATION OF MANUFACTURING OF BAMBOO SHOOT PROCESSING
Items to be Manufactured BAMBOO SHOOT PROCESSING
Manufacturing Capacity per day - 1.00 MT

-
No. of Working Hour 8
No of Working Days per month 30 days
No. of Working Day per annum 240 days
Total Production per Annum 240.00 MT
Year Capacity MT
Utilisation
IST YEAR 50% 120

IIND YEAR 60% 144
IIIRD YEAR 70% 168
IVTH YEAR 80% 192
VTH YEAR 90% 216
COMPUTATION OF RAW MATERIAL
Item Name Quantity of Recovery Unit Rate of Total Cost

Raw Material /MT Per Annum
MT
Fresh Bamboo Shoots 100% 240.00 100% 55,000.00 132.00
Preservatives and spices 5.00
Total
(Rounded off in 137.00
Annual Consumption cost ( In Lacs) 137.00
Capacity
Raw Material Consumed(Grapes) Rs lac
Utilisation
IST YEAR 50% 68.50

IIND YEAR 60% 82.20
IIIRD YEAR 70% 95.90
IVTH YEAR 80% 109.60
VTH YEAR 90% 123.30
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL
Finished Goods
(15 Days requirement) 3.84 4.61 5.38 6.14 6.91
Raw Material
(15Days requirement) 3.43 4.11 4.80 5.48 6.17
Closing Stock 7.27 8.72 10.17 11.62 13.08
COMPUTATION OF WORKING CAPITAL REQUIREMENT
Particulars Total
Amount
Stock in Hand 7.27
Sundry Debtors 2.13

Total 9.39
Sundry Creditors 3.43
Margin 0.60

BREAK UP OF LABOUR
Particulars Wages No of Total

Per Month Employees Salary
Skilled Worker 9,000.00 2 18,000.00

Unskilled Worker 6,000.00 4 24,000.00
42,000.00
Add: 10% Fringe Benefit 4,200.00
Total Labour Cost Per Month 46,200.00
Total Labour Cost for the year ( In Rs. Lakhs) 5.00 5.54
BREAK UP OF SALARY
Particulars Salary No of Total

Accountant 8,000.00 1 8,000.00

Sales 10,000.00 2 20,000.00
Total Salary Per Month 28,000.00

Total Salary for the month 30,800.00
Total Salary for the year ( In Rs. Lakhs) 2.00 3.70

COMPUTATION OF DEPRECIATION
Description Land Building/shed Plant & Furniture TOTAL

Machinery
Rate of Depreciation 10.00% 15.00% 10.00%

Opening Balance Leased - - - -
Addition - 5.00 7.55 0.73 13.28
- 5.00 7.55 0.73 13.28
Less : Depreciation - 0.50 1.13 0.04 1.67
WDV at end of Ist year - 4.50 6.42 0.69 11.61
Additions During The Year - - - - -
- 4.50 6.42 0.69 11.61
WDV at end of IInd Year - 4.05 5.45 0.62 10.13
- 4.05 5.45 0.62 10.13
WDV at end of IIIrd year - 3.65 4.64 0.56 8.84
- 3.65 4.64 0.56 8.84
WDV at end of IV year - 3.28 3.94 0.51 7.73
- 3.28 3.94 0.51 7.73
WDV at end of Vth year - 2.95 3.35 0.46 6.76
REPAYMENT SCHEDULE OF TERM LOAN 11.5%
Year Particulars Amount Addition Total Interest Repayment Cl Balance

IST YEAR Opening Balance
Ist Quarter - 12.63 12.63 - - 12.63
Iind Quarter 12.63 - 12.63 0.36 - 12.63
IIIrd Quarter 12.63 - 12.63 0.36 - 12.63
Ivth Quarter 12.63 - 12.63 0.36 - 12.63
1.09 -
IIND YEAR Opening Balance
Ist Quarter 12.63 - 12.63 0.36 0.79 11.84
Iind Quarter 11.84 - 11.84 0.34 0.79 11.05
IIIrd Quarter 11.05 - 11.05 0.32 0.79 10.26
Ivth Quarter 10.26 10.26 0.29 0.79 9.47
1.32 3.16
IIIRD YEAR Opening Balance
Ist Quarter 9.47 - 9.47 0.27 0.79 8.68
Iind Quarter 8.68 - 8.68 0.25 0.79 7.89
IIIrd Quarter 7.89 - 7.89 0.23 0.79 7.10
Ivth Quarter 7.10 7.10 0.20 0.79 6.31
0.95 3.16
IVTH YEAR Opening Balance
Ist Quarter 6.31 - 6.31 0.18 0.79 5.52
Iind Quarter 5.52 - 5.52 0.16 0.79 4.74
IIIrd Quarter 4.74 - 4.74 0.14 0.79 3.95
Ivth Quarter 3.95 3.95 0.11 0.79 3.16
0.59 3.16
VTH YEAR Opening Balance
Ist Quarter 3.16 - 3.16 0.09 0.79 2.37
Iind Quarter 2.37 - 2.37 0.07 0.79 1.58
IIIrd Quarter 1.58 - 1.58 0.05 0.55 1.03
Ivth Quarter 1.03 1.03 0.03 0.55 0.48
0.23 2.68
CALCULATION OF D.S.C.R
CASH ACCRUALS 9.20 11.53 14.64 17.67 20.59
Interest on Term Loan 1.09 1.32 0.95 0.59 0.23
Total 10.29 12.85 15.60 18.26 20.82
REPAYMENT
Instalment of Term Loan 3.16 3.16 3.16 2.68 2.68
Total 4.25 4.47 4.11 3.27 2.91
DEBT SERVICE COVERAGE RATIO 2.42 2.87 3.79 5.59 7.15
AVERAGE D.S.C.R. 4.37

COMPUTATION OF SALE
Particulars IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR
Op Stock - 6.00 7.20 8.40 9.60
Production 120.00 144.00 168.00 192.00 216.00
120.00 150.00 175.20 200.40 225.60
Less : Closing Stock 6.00 7.20 8.40 9.60 10.80
Net Sale 114.00 142.80 166.80 190.80 214.80
Average Sale Price per MT(bamboo pickle and canned) 80,000.00 80,000.00 80,000.00 80,000.00 80,000.00
Sale (in Lacs) 91.20 114.24 133.44 152.64 171.84
COMPUTATION OF ELECTRICITY
(A) POWER CONNECTION
Total Working Hour per day Hours 8

Electric Load Required HP 15
Load Factor 0.7460
Electricity Charges per unit 8.00
Total Working Days 300
Electricity Charges ( 8 Hrs Per day ) 214,848.00
Add : Minimim Charges (@ 10%)
(B) D.G. SET

No. of Working Days 300 days
No of Working Hours - Hour per day
Total no of Hour -
Diesel Consumption per Hour 8
Total Consumption of Diesel -
Cost of Diesel 65.00 Rs. /Ltr
Total cost of Diesel -
Add : Lube Cost @15% -
Total -
Total cost of Power & Fuel at 100% 2.15
Year Capacity Amount

(in Lacs)
IST YEAR 50% 1.07

IIND YEAR 60% 1.29
IIIRD YEAR 70% 1.50
IVTH YEAR 80% 1.72
VTH YEAR 90% 1.93
BREAK EVEN POINT ANALYSIS
Year I II III IV V
Net Sales & Other Income 91.20 114.24 133.44 152.64 171.84
Less : Op. WIP Goods ‐ 3.84 4.61 5.38 6.14
Add : Cl. WIP Goods 3.84 4.61 5.38 6.14 6.91
Total Sales 95.04 115.01 134.21 153.41 172.61
Variable & Semi Variable Exp.
Raw Material & Tax 68.50 82.20 95.90 109.60 123.30

Electricity Exp/Coal Consumption at 85% 0.91 1.10 1.28 1.46 1.64
Manufacturing Expenses 80% 2.19 3.66 4.27 4.88 5.50
Wages & Salary at 60% 5.54 6.10 6.71 7.38 8.12
Selling & adminstrative Expenses 80% 1.46 1.83 2.14 2.44 2.75
Intt. On Working Capital Loan 0.54 0.54 0.54 0.54 0.54
Total Variable & Semi Variable Exp 79.14 95.41 110.83 126.30 141.85
Contribution 15.90 19.59 23.38 27.10 30.76
Fixed & Semi Fixed Expenses

Wages & Salary at 40% 3.70 4.07 4.47 4.92 5.41
Depreciation 1.67 1.48 1.29 1.12 0.97
Total Fixed Expenses 7.53 8.43 8.54 8.71 8.97
Capacity Utilization 50% 60% 70% 80% 90%

OPERATING PROFIT 8.37 11.17 14.84 18.39 21.80
BREAK EVEN POINT 24% 26% 26% 26% 26%
BREAK EVEN SALES 45.00 49.47 49.01 49.33 50.31
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 indirectly from any use of the Project Report
Content, which is provided as is, and without warranties.
PROJECT AT A GLANCE
1 Name of the Entreprenuer XXXXXXX
2 Constitution (legal Status) : XXXXXXX
3 Father's/Spouce's Name XXXXXXXX
4 Unit Address : XXXXXXXX
Taluk/Block:
District : XXXXX
Pin: XXXXX State:
E-Mail : XXXXX
Mobile XXXXX
5 Product and By Product : Handmade Paper from waste
6 Name of the project / business activity proposed : Handmade Paper from waste
7 Cost of Project : Rs25.00lac
8 Means of Finance
Term Loan Rs.16.56 Lacs
KVIC Margin Money - As per Project Eligibility
Own Capital Rs.2.5 Lacs
Working Capital Rs.5.95 Lacs
9 Debt Service Coverage Ratio : 2.80
10 Pay Back Period : 5 Years
11 Project Implementation Period : 8 Months
12 Break Even Point : 36%
13 Employment : 10 Persons
14 Power Requirement : 36.00 HP
Cotton hosiery rags, Cotton jeans waste cutting, jute bag waste, office
15 Major Raw materials record waste paper .
:
16 Estimated Annual Sales Turnover : 38.88 Lacs
16 Detailed Cost of Project & Means of Finance
COST OF PROJECT (Rs. In Lacs)

Particulars Amount
Land Rented/Owned
Building & Civil Work (4000 Sq Ft) 2.00
Plant & Machinery 15.75
Furniture & Fixtures 0.25
Pre-operative Expenses 0.40
Total 25.00
MEANS OF FINANCE
Particulars Amount
Own Contribution @10% 2.50
Term Loan 16.56
Workign Capital Finance 5.95
Total 25.00
General Special
Beneficiary's Margin Money 10% 5%
(% of Project Cost)
PLANT & MACHINERY
PARTICULARS QTY. RATE AMOUNT IN RS.

Rag Chopper 1 70,000.00 70,000.00
Hollander Beater 1 285,000.00 285,000.00
Auto Vat 4 40,000.00 160,000.00
Hydraulic press 1 275,000.00 275,000.00
Calendaring machine 1 425,000.00 425,000.00
Cutting machine 1 350,000.00 350,000.00
Weighing balance 1 10,000.00 10,000.00
-
TOTAL 1,575,000.00
Rates are indicative only
PROJECTED CASH FLOW STATEMENT
PARTICULARS IST YEAR IIND YEAR IIIRD YEARIVTH YEAR VTH YEAR
SOURCES OF FUND
Share Capital 2.50 -

Reserve & Surplus 5.92 8.48 11.63 14.62 17.43
Depriciation & Exp. W/off 2.58 2.21 1.89 1.62 1.38
Increase in Cash Credit 5.95 - - - -
Increase In Term Loan 16.56 - - - -
Increase in Creditors 0.37 0.06 0.06 0.06 0.06
Increase in Provisions 0.36 0.04 0.04 0.04 0.05
TOTAL : 34.24 10.79 13.62 16.34 18.92
APPLICATION OF FUND
Increase in Fixed Assets 18.00 - - - -

Increase in Stock 5.04 0.84 0.84 0.84 0.84
Increase in Debtors 1.94 0.54 0.36 0.36 0.36
Increase in Deposits & Adv 2.50 0.25 0.28 0.30 0.33
Repayment of Term Loan - 4.14 4.14 4.14 3.17
Taxation 0.59 0.85 2.33 2.92 3.49
TOTAL : 28.08 6.62 7.94 8.57 8.19
Opening Cash & Bank Balance - 6.16 10.33 16.01 23.78
Add : Surplus 6.16 4.17 5.68 7.77 10.73
Closing Cash & Bank Balance 6.16 10.33 16.01 23.78 34.51
PROJECTED BALANCE SHEET
SOURCES OF FUND
Capital Account 2.50 2.50 2.50 2.50 2.50

Retained Profit 5.33 12.96 22.26 33.95 47.89
Term Loan 16.56 12.42 8.28 4.14 0.97

Cash Credit 5.95 5.95 5.95 5.95 5.95
Sundry Creditors 0.37 0.43 0.49 0.55 0.62
Provisions & Other Liab 0.36 0.40 0.44 0.48 0.53
TOTAL : 31.07 34.66 39.92 47.58 58.46
APPLICATION OF FUND
Fixed Assets ( Gross) 18.00 18.00 18.00 18.00 18.00

Gross Dep. 2.58 4.79 6.68 8.29 9.67
Net Fixed Assets 15.43 13.21 11.32 9.71 8.33
Current Assets
Sundry Debtors 1.94 2.48 2.84 3.20 3.56
Stock in Hand 5.04 5.88 6.72 7.56 8.40
Cash and Bank 6.16 10.33 16.01 23.78 34.51
Deposits & Advances 2.50 2.75 3.03 3.33 3.66
TOTAL : 31.07 34.66 39.92 47.58 58.46
- - - - -
PROJECTED PROFITABILITY STATEMENT
A) SALES
Gross Sale 38.88 49.68 56.88 64.08 71.28
Total (A) 38.88 49.68 56.88 64.08 71.28
B) COST OF SALES
Raw Mateiral Consumed 15.84 18.48 21.12 23.76 26.40

Elecricity Expenses 3.09 3.61 4.13 4.64 5.16
Repair & Maintenance - 0.50 0.57 0.64 0.71
Labour & Wages 6.34 6.97 7.67 8.43 9.28
Depriciation 2.58 2.21 1.89 1.62 1.38
Consumables,packaging and Other
Expenses 1.94 2.48 2.84 3.20 3.56
Cost of Production 29.79 34.25 38.21 42.29 46.49
Add: Opening Stock /WIP - 3.46 4.03 4.61 5.18

Less: Closing Stock /WIP 3.46 4.03 4.61 5.18 5.76
Cost of Sales (B) 26.33 33.68 37.64 41.72 45.92
C) GROSS PROFIT (A-B) 12.55 16.00 19.24 22.36 25.36

32% 32% 34% 35% 36%
D) Bank Interest (Term Loan ) 1.43 1.73 1.25 0.77 0.31
Bank Interest ( C.C. Limit ) 0.60 0.60 0.60 0.60 0.60
E) Salary to Staff 3.83 4.21 4.63 5.10 5.60
F) Selling & Adm Expenses Exp. 0.78 0.99 1.14 1.28 1.43
TOTAL (D+E) 6.63 7.53 7.61 7.75 7.94
H) NET PROFIT 5.92 8.48 11.63 14.62 17.43
I) Taxation 0.59 0.85 2.33 2.92 3.49
J) PROFIT (After Tax) 5.33 7.63 9.30 11.69 13.94

COMPUTATION OF MANUFACTURING OF Handmade Paper from waste
Items to be Manufactured Handmade Paper from waste
Manufacturing Capacity per day - 0.08 MT

-
No. of Working Hour 8
No of Working Days per month 25
No. of Working Day per annum 300
Total Production per Annum 24.00 MT
Year Capacity MT
Utilisation
IST YEAR 60% 14.40

IIND YEAR 70% 16.80
IVTH YEAR 90% 21.60
VTH YEAR 100% 24.00
COMPUTATION OF RAW MATERIAL
Item Name Quantity of Recovery Unit Rate of Total Cost

Raw Material/MT /MT Per Annum (100%)
Cotton hosiery rags, Cotton jeans
100% 30.00 100% 80,000.00 24.00
waste cutting, jute bag waste, office
Adhesives colour 2.40
For production of 24. MT of output 30.00MT raw material requirement has
Total (Rounded off in lacs) 26.40
Annual Consumption cost ( In Lacs) 26.40
Raw Material Consumed Capacity Amount (Rs.)

Utilisation
IST YEAR 60% 15.84

IIND YEAR 70% 18.48
IVTH YEAR 90% 23.76
VTH YEAR 100% 26.40
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL
Finished Goods
(30Days requirement) 3.46 4.03 4.61 5.18 5.76
Raw Material
(30 Days requirement) 1.58 1.85 2.11 2.38 2.64
Closing Stock 5.04 5.88 6.72 7.56 8.40
COMPUTATION OF WORKING CAPITAL REQUIREMENT
Particulars Total
Amount
Stock in Hand 5.04
Sundry Debtors 1.94

Total 6.98
Sundry Creditors 0.37
Margin 0.66

BREAK UP OF LABOUR
Particulars Wages No of Total

Skilled Worker 9,000.00 2 18,000.00

Unskilled Worker 6,000.00 5 30,000.00
48,000.00
Total Labour Cost Per Month 52,800.00
Total Labour Cost for the year ( In Rs. Lakhs) 7 6.34
BREAK UP OF SALARY
Particulars Salary No of Total

-
Accountant 9,000.00 1 9,000.00
Sales 10,000.00 2 20,000.00
Total Salary Per Month 29,000.00

Total Salary for the month 31,900.00
Total Salary for the year ( In Rs. Lakhs) 3 3.83

COMPUTATION OF DEPRECIATION
Plant &
Description Land Building/shed Machinery Furniture TOTAL
Rate of Depreciation 10.00% 15.00% 10.00%

Opening Balance Leased - - - -
Addition - 2.00 15.75 0.25 18.00
- 2.00 15.75 0.25 18.00
WDV at end of Ist year - 1.80 13.39 0.24 15.43
- 1.80 13.39 0.24 15.43
WDV at end of IInd Year - 1.62 11.38 0.21 13.21
- 1.62 11.38 0.21 13.21

WDV at end of IIIrd year - 1.46 9.67 0.19 11.32
- 1.46 9.67 0.19 11.32
WDV at end of IV year - 1.31 8.22 0.17 9.71
- 1.31 8.22 0.17 9.71
WDV at end of Vth year - 1.18 6.99 0.16 8.33
REPAYMENT SCHEDULE OF TERM LOAN 11.5%
Year Particulars Amount Addition Total Interest Repayment Cl Balance
IST YEAR Opening Balance

Ist Quarter - 16.56 16.56 - - 16.56
Iind Quarter 16.56 - 16.56 0.48 - 16.56
IIIrd Quarter 16.56 - 16.56 0.48 - 16.56
Ivth Quarter 16.56 - 16.56 0.48 - 16.56
1.43 -
IIND YEAR Opening Balance
Ist Quarter 16.56 - 16.56 0.48 1.04 15.53
Iind Quarter 15.53 - 15.53 0.45 1.04 14.49
IIIrd Quarter 14.49 - 14.49 0.42 1.04 13.46
Ivth Quarter 13.46 13.46 0.39 1.04 12.42
1.73 4.14
IIIRD YEAR Opening Balance
Ist Quarter 12.42 - 12.42 0.36 1.04 11.39
Iind Quarter 11.39 - 11.39 0.33 1.04 10.35

IIIrd Quarter 10.35 - 10.35 0.30 1.04 9.32
Ivth Quarter 9.32 9.32 0.27 1.04 8.28
1.25 4.14
IVTH YEAR Opening Balance
Ist Quarter 8.28 - 8.28 0.24 1.04 7.25
Iind Quarter 7.25 - 7.25 0.21 1.04 6.21
IIIrd Quarter 6.21 - 6.21 0.18 1.04 5.18
Ivth Quarter 5.18 5.18 0.15 1.04 4.14
0.77 4.14
VTH YEAR Opening Balance
Ist Quarter 4.14 - 4.14 0.12 1.04 3.11
Iind Quarter 3.11 - 3.11 0.09 1.04 2.07
IIIrd Quarter 2.07 - 2.07 0.06 0.55 1.52
Ivth Quarter 1.52 1.52 0.04 0.55 0.97
0.31 3.17
CALCULATION OF D.S.C.R
CASH ACCRUALS 7.90 9.84 11.19 13.31 15.32
Total 9.33 11.57 12.44 14.08 15.64
REPAYMENT
Instalment of Term Loan 4.14 4.14 4.14 3.17 3.17
Total 5.57 5.87 5.39 3.94 3.48
DEBT SERVICE COVERAGE RATI 1.68 1.97 2.31 3.57 4.49
AVERAGE D.S.C.R. 2.80

COMPUTATION OF SALE
Particulars IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR
Op Stock - 1.44 1.68 1.92 2.16
Production 14.40 16.80 19.20 21.60 24.00
14.40 18.24 20.88 23.52 26.16

Less : Closing Stock 1.44 1.68 1.92 2.16 2.40
Net Sale 12.96 16.56 18.96 21.36 23.76
Sale Price per MT 300,000.00 300,000.00 300,000.00 300,000.00 300,000.00
Sale (in Lacs) 38.88 49.68 56.88 64.08 71.28

COMPUTATION OF ELECTRICITY
(A) POWER CONNECTION
Total Working Hour per day Hours 8

Electric Load Required HP 36
Load Factor 0.7460
Electricity Charges per unit 8.00
Total Working Days 300
Electricity Charges ( 8 Hrs Per day ) 515,635.20
Add : Minimim Charges (@ 10%)
(B) D.G. SET

No. of Working Days 300 days
No of Working Hours - Hour per day
Total no of Hour -
Diesel Consumption per Hour 8
Total Consumption of Diesel -
Cost of Diesel 65.00 Rs. /Ltr
Total cost of Diesel -
Add : Lube Cost @15% -
Total -
Total cost of Power & Fuel at 100% 5.16
Year Capacity Amount

(in Lacs)
IST YEAR 60% 3.09

IIND YEAR 70% 3.61
IIIRD YEAR 80% 4.13
IVTH YEAR 90% 4.64
VTH YEAR 100% 5.16
BREAK EVEN POINT ANALYSIS
Year I II III IV V
Net Sales & Other Income 38.88 49.68 56.88 64.08 71.28
Less : Op. WIP Goods ‐ 3.46 4.03 4.61 5.18
Add : Cl. WIP Goods 3.46 4.03 4.61 5.18 5.76
Total Sales 42.34 50.26 57.46 64.66 71.86
Variable & Semi Variable Exp.
Raw Material & Tax 15.84 18.48 21.12 23.76 26.40

Wages & Salary at 60% 6.10 6.71 7.38 8.12 8.93
Intt. On Working Capital Loan 0.60 0.60 0.60 0.60 0.60
Total Variable & Semi Variable Exp 27.34 32.03 36.24 40.52 44.87
Contribution 15.00 18.22 21.22 24.14 26.99
Fixed & Semi Fixed Expenses

Wages & Salary at 40% 4.07 4.47 4.92 5.41 5.95
Depreciation 2.58 2.21 1.89 1.62 1.38
Total Fixed Expenses 9.08 9.75 9.59 9.52 9.56
Capacity Utilization 60% 70% 80% 90% 100%

OPERATING PROFIT 5.92 8.48 11.63 14.62 17.43
BREAK EVEN POINT 36% 37% 36% 36% 35%
BREAK EVEN SALES 25.63 26.88 25.97 25.51 25.45
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 indirectly from any use of the Project Report
Content, which is provided as is, and without warranties.

Bamboo Shoot Products

Uploaded by

Copyright:

Available Formats

Bamboo Shoot Products

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Bamboo Shoot Products

Uploaded by

Copyright:

Available Formats

PROJECT REPORT

BAMBOO SHOOT PRODUCTS

(PICKLE AND CANNED SHOOT)

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Bamboo shoot products.

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in

Lucknow Office: Sidhivinayak Building ,

Delhi Office : Multi Disciplinary Training

Bamboo shoot is consumed either raw or processed because of its exotic

Being a lesser-known food product, bamboo shoot processing has potential to

The proposed project is that of setting up of a Bamboo Shoot Processing unit

 Bamboo Shoot Pickle

The proposed business may utilise media such as broadcast, newspapers

Marketing plan of the proposed project may include good quality

The process flow diagram is as follows:

BAMBOO SHOOT PICKLE CANNING OF BAMBOO

CURING IN SALT BRINING AND DRAINING

MIXING WITH OIL AND VINEGAR

Bamboo Shoot Pickle: Bamboo shoots Pickle processing starts with

Canning of Bamboo Shoot: High moisture content of bamboo shoots makes

The Containers made of plastic materials should conform to the following

(i) IS : 10146 (Specification for Polyethylene in contact with foodstuffs);

General packaging requirements for canned products;

(i) All containers shall be securely packed and sealed.

carry on any food business except under a FSSAI license or FSSAI

POLLTUION CONTROL: There is no major pollution problem associated with

ENERGY CONSERVATION: Proper care should be taken in running the

The major consumables required are as follows;

The total requirement of power for the project is 15 KW.

WATER: Constant flow of water would be necessary in the operation of the

The installed production capacity of the unit per annum is as follows;

Bamboo Shoot Pickle - 100 Ton

1 Name of the Entreprenuer XXXXXXX

2 Constitution (legal Status) : XXXXXXX

3 Father's/Spouce's Name XXXXXXXX

4 Unit Address : XXXXXXXX

5 Product and By Product : Bamboo pickle and canned bamboo shoot

7 Cost of Project : Rs20.00lac

9 Debt Service Coverage Ratio : 4.37

10 Pay Back Period : 5 Years

11 Project Implementation Period : 8 Months

12 Break Even Point : 25%

14 Power Requirement : 15.00 HP

15 Major Raw materials : Bamboo shoots

16 Estimated Annual Sales Turnover : 91.20 Lacs

16 Detailed Cost of Project & Means of Finance

COST OF PROJECT : (Rs. In Lacs)

PARTICULARS QTY. RATE AMOUNT IN RS.

Capital Account 2.00 2.00 2.00 2.00 2.00

Term Loan 12.63 9.47 6.31 3.16 0.48

TOTAL : 31.32 38.93 49.85 63.98 81.65

Fixed Assets ( Gross) 13.28 13.28 13.28 13.28 13.28

TOTAL : 31.32 38.93 49.85 63.98 81.65

Total (A) 91.20 114.24 133.44 152.64 171.84

Raw Mateiral Consumed 68.50 82.20 95.90 109.60 123.30

Add: Opening Stock /WIP - 3.84 4.61 5.38 6.14

Cost of Sales (B) 75.68 94.87 109.97 125.15 140.43

C) GROSS PROFIT (A-B) 15.52 19.37 23.47 27.49 31.41

TOTAL (D+E) 7.15 8.20 8.63 9.10 9.62

H) NET PROFIT 8.37 11.17 14.84 18.39 21.80