A.2. Representaciones del grupo de Lorentz
A.3.1. Representaciones inducidas
A. INTRODUCTION
The pesticide formulation is a physical mixture of one or several biologically active ingredients which provide effective and economic control of pests. These varied types of formulations of pesticides are intended to serve diverse needs of agriculture and public health. These also have to be manufactured to suit different types of applications. So far only inorganic pesticides have been in use and as an alternative now organic pesticides have come to be used. Neem pesticide is one among them, based on neem extract.
B. PRODUCT SPECIFICATION & USES
Pesticides cover a wide range of heterogeneous products which help in controlling the loss of crops and vegetation from attack pests. Pesticides are also used in cleaning in drains, sewages, canals, ponds, from unwanted vegetable and animal origin growth. In public health programmes pesticides eradicate malaria, cholera etc.
The main groups of pesticides are 1. Insecticides – which kill insects
2. Herbicides or weedicides – which remove unwanted shrubs, weeds 3. Fungicides – Which kill fungi and related growth
4. Fumigants – which are in gaseous form which kill insects, weeds fungi. 5. Rodenticides – which destroy, prevent and kill rodents, rates, squirrels, mice
etc.
6. Nematicides – which prevent and kill nematodes such as earthworms which attack roots of crops
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Pesticide formulation is a physical mixture of one or several biologically active chemicals and inert ingredients. The Bureau of Indian standards BIS has prescribed the standards for the following
IS 8190 - Solid Pesticides - Liquid pesticides
- House hold pesticides - Fumigants
The main forms of formulation available are: 1. Power form (Dusts)
2. Weltable powders
3. Granulated preparations 4. Emulsive concentrates 5. Solutions in waters 6. Aero sols and fumigants
7. Other types of formulation such as soaps, paints, pastes, waxes. C. MARKET POTENTIAL
Agriculture is the largest and most important sector of the Indian economy with 70% of the people depending on it. Production from various agricultural sources contributes 40% of national income. The introduction of high yielding varieties of crops and modern crop production techniques have contributed to the increasing pest problems.
Annual loss due to pest problems is estimated to be Rs.6000 crores. In tackling the noxious enemies of crop-pest in the past three decades the Indian farmer has heavily depended upon chemical pesticides. The annual consumption of pesticide is worth Rs.5556 million. These chemical pesticides which are easily accessible to the farmers giving quick perceptible results were often used indiscriminately and unnecessarily leading to several hazards to
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man and environmental problems. Entomologists have been constantly evaluating alterative method of pest management.
Considering the necessity of using organic based pesticides there is a growing demand for alternative pesticides.
D. TECHNICAL ASPECTS 1. Installed capacity
The installed capacity proposed is 30,000 litres of neem-based pesticide in liquid per annum. This is based on a production capacity of 100 litres per day.
2. Plant & Machinery
The unit does not require any sophisticated machinery . The following machinery items are suggested
Mixing vessel with stirrer stainless steel 100 ltr.
Capacity (1 No.) Rs.40,000 Testing instruments & laboratory, Moisture Balance, Rs.30,000 Water testing, Ph meter, Turbidity metre,
Vessels, Plastic Buckets etc. Rs.35,000 Total Rs.105,000
3. Manufacturing Process
Various ingredients / chemicals are weighed and taken out from stores according to pre fixed formula. Ingredients are thoroughly mixed in mixing vessels. After uniform blending the mixture is taken out and packed in HDPE containers.
The manufacturing of pesticides requires licence from Tamilnadu Agriculture Department and Central Insecticides Bureau Faridabad.
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4. Raw Materials
Calculation for one litre pest
Qty. Rate(ltr./gm) Toal value Azadiractin 0.15% WW m 1.5 ml. Rs.35.00 per gm. Rs.52.50 Associated neem kernal
ingredients 1.35% 13.5ml Rs.12.00 per ltr. Rs. 0.16 Proplyene Glycol 98.5% 985.0 ml Rs.190.00 per ltr. Rs.187.15
Total Rs.239.81
Packing Material (4 bottle of 250 ml x Rs.5.50) Rs. 24.00 Raw material cost for one litre of pesticide Rs.263.81 Total material cost per annum
at 100% utilisaiton 30,000 x Rs.263.81 = Rs.79.14 lakhs
5. Land & Building
An area of 500 sqft. is sufficient to instal the equipment and providing storage space. This can be arranged on rental basis at the rate of Rs.8 per sq. ft. is considered. An advance of Rs.40,000 is considered.
6. Utilities
Power: A single phase connection is sufficient to operate the mixing vessel. Water: Water is required for cleaning and washing process and for human consumption which is estimated 2000 litres per day.
Man power:
Category Nos. Monthly Salary Total Salary p.m. Supervisor/chemist 1 5000 5000
Workers 2 4000 8000
Total 13000
Add : 20% benefits 2600 15600 Total salary per annum (Rs.lakhs) Rs.1.87 lakhs
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7. Implementation Schedule
As the equipments are available easily, if financing arrangements are made, the project can be implemented in a month’s time.
8. ASSUMPTIONS
• Installed capacity of unit is estimated at 30,000 litres of neem pesticides per annum, which is based on 100 litres per day, the unit works for 300 days.
• During first year utilisation capacity is assumed at 60%, this will be increased to 70% and 80% in subsequent years.
• Selling price is estimated at Rs.310/- per litre, this works out to Rs.93.00 lakhs per annum at 100% capacity utilisation.
• Cost of Raw Materials is calculated at Rs.79.14 lakhs per annum which includes packing materials also.
• Power charge is estimated at the current rate which works out to Rs.0.24 lakh per annum i.e Rs.2000/- per month.
• Wages & Salary is estimated at Rs.1.87 lakhs per annum.
• Depreciation is calculated on WDV method
• Repairs & maintenance is estimated at Rs.0.60 lakh per annum.
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• Interest on Term Loan & working capital borrowing are estimated at 12% p.a.
• Income tax is provided at 33.99% on taxable income.
LIST OF EQUIPMENT SUPPLIERS
1. They Royal Scientific Industries, R.S.74-A, Tiny Sector, SIDCO Industrial State, Ekkatuthangal, Chennai 600 097
2. Bhuvaneswari & Co., No.13, Old Truck Road, Pallavaram, Chennai 600 043.
LIST OF RAW MATERIAL SUPPLIERS Neem Extract
1. Eid Parry India Ltd., Farm Input Division, No.234 NSC Bose Road, Chennai 600 001
2. Bio-Technology & Seeds Division, SPIC Ltd., Agro Industrial Complex Chennai 600 015.
Proplyene Glycol
1. Scientific Chemicals, No.2, Ayya Pillai Street, Chennai 600 003.
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3.
1. COST OF PROJECT [Rs.lakhs] Land and Building (Advance) 0.40 Plant & Machinery 1.05 Other Misc. assets 0.20 Pre-Operative expenses 0.20 Margin for WC 3.01 Total 4.86 2. MEANS OF FINANCE Capital 4.07 Term Loan 0.79 Total 4.86 3. COSTOF PRODUCTION & PROFITABILITY STATEMENTS
Years 1 2 3 Installed Capacity (Ltr.) 30000 30000 30000 Utilisation 60% 70% 80% Production/Sales (Ltr.) 18000 21000 24000 Selling Price Rs.310 per ltr.
Sales Value 55.80 65.10 74.40 Raw Materials 47.48 55.40 63.31 (including packing materials)
Power (Rs.2000 p.m.) 0.24 0.26 0.29 Wages & Salaries 1.87 1.96 2.06 Repairs & Maintenance 0.60 0.63 0.66 Depreciation 0.16 0.13 0.11 Cost of Production 50.35 58.38 66.43 Admin, & General expenses 1.20 1.26 1.32 Interest on Term Loan 0.09 0.08 0.06 Interest on Working Capital 1.06 1.06 1.06 Total 52.70 60.78 68.87 Profit Before Tax 3.10 4.32 5.53 Provision for tax 1.05 1.47 1.88 Profit After Tax 2.05 2.85 3.65
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Add: Depreciation 0.16 0.13 0.11 Cash Accruals 2.21 2.98 3.76
4. WORKING CAPITAL:
Months Values % Margin Bank Consumptions Amount Finance Raw Materials 2.00 7.91 25% 1.98 5.93 Consumables 0.00 0.00 25% 0.00 0.00 Finished goods 0.25 1.05 25% 0.26 0.79 Debtors 0.50 2.33 10% 0.23 2.10 Expenses 1.00 0.50 100% 0.50 0.00 11.79 2.97 8.82 Say --> Rs.8.80 lakhs
6. PROFITABILITY RATIOS BASED ON 80% UTILISATION
Profit after Tax 3.65 Sales 74.40 5% Profit before Interest and Tax 6.65
Total Investment 13.66 49% Profit after Tax 3.65
Promoters Capital 4.07 90%
7. BREAK EVEN LEVEL
Fixed Cost (FC): [Rs. lakhs] Wages & Salaries 2.06 Repairs & Maintenance 0.66 Depreciation 0.11 Admin. & General expenses 1.32 Interest on TL 0.06 4.21 Profit Before Tax (P) 5.53
BEL = FC x 100 4.21 x 80 x 100 FC +P 4.21+ 5.53 100
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BISCUITS
1. Introduction
Biscuits are the most commonly consumed bakery products. The market leaders for the product include Britannia, Parle, True, Real, Bakemans, Dukes and a large number of national and local brands. There exists a lot of potential for manufacture and sale of biscuits and value added products such as high protein biscuits using vegetable protein isolates and concentrates or hydrolysates; chocolate biscuits with the incorporation of chocolate mass; biscuits with nuts and raisins etc.
2. Market
The product finds placement in all “A”, “B” and “C” class outlets, self service, departmental stores and supermarkets. In addition biscuits from India are exported to the neighbouring countries and the Gulf.
3. Packaging
Biscuits are best packed in metallized polyester-poly films. Alternatively a BOPP laminate BOPP film would also be suited. They an be packed in weights of 25, 50, 75, 100 150, 200 and 300 grams and thereafter in multiples of 100 grams.
4. Production capacity
• The plant operates to three shifts a day with each shift of eight hours
duration.
• The time period required for achieving full capacity utilization is three years. • The plant will operate to a capacity of raw material (maida) input of 150
kilograms per hour or 3 M.T per day. The end product yield will be 2.5 metric tonnes per day. The estimated production per annum of 300 working days will be 750 tonnes of biscuits.
5. Sales revenue
• Considering the glucose variety as an example, the ex-factory price will be
Rs. 62.00 per kilogram thereby yielding a sales revenue of Rs. 465 lakhs on full capacity utilization.
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6. Production process outline.
The ingredients consisting of refined wheat flour, sugar, liquid glucose, hydrogenated fat, skimmed milk powder, emulsifiers such as lecithin, ammonium bi-carbonate, traces of salt and preservatives are mixed in definite proportions and kneaded into a dough by a mixer. The dough is put into a rotary moulding machine for cutting biscuit designs. The cut dough traverses on a conveyer belt through a baking oven at temperatures ranging between 180 and 220 degrees centigrade. The speed of the belt can be varied for optimum baking and the maximum time required is two and a half minutes. After baking, the biscuits are cooled to less than two percent moisture on a cooling conveyer, connected with the oven. It is then packed and readied for dispatch. The above mentioned process is typical for glucose biscuits. Protein concentrates from a groundnut or soya source can be added to the flour in small quantities not exceeding two to fifteen percent to give high protein biscuits. In the process of manufacture of salted varieties, liquid glucose and sugar are not added. After kneading, moulding and baking, the biscuits are sprayed with hot oil, dusted with additional salt and spices, cooled and packed.
7. Quality specifications
• The ingredients used in the manufacture of biscuits should strictly conform to
standards laid down under the Prevention of Food Adulteration Act.
• Moisture content - maximum 2 percent. • Acid insoluble ash - maximum 0.1 percent.
• Acidity of extracted fat as oleic acid - maximum 1.5 percent.
• The product should be free from coliforms, salmonella and streptococci
bacteria.
8. Pollution control measures
Not necessary as there are no pollutants or effluents.
9. Energy conservation measures
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10. Land and construction cost for the proposed unit
The proposed unit is to be set up in a leased area.
Sl Description Sq. feet
1 Processing area 3000 2 Raw material store for maida 500 3 Sugar storage room 200 4 Vanaspathi storage room 200 4 Other ingredients store room 400 5 Finished goods store room 500
6 Laboratory 200
7 Office space 300 8 Machinery spares room 200 9 Toilet space 200 10 Miscellaneous space 300
11 Total 6000
Lease rentals – Rs. 5.00 per square foot Total rent per month – Rs. 30000.
Lease advance – Rs. 2.00 lakhs
11. Costing of machinery and equipment
Sl Description Rs. lakhs 1 Flour sifter 2 Flour kneader 3 Molding unit 4 Baking oven 5 Cooling unit 6 Stacking unit 7 Oil spraying unit 8 Wrapping unit 9 Creaming unit 10 Weighing scales 11 Machinery spares 12 Total 24.000 13 Laboratory equipment 1.000 14 Grand total machinery and equipment 25.000
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12. Project cost
Sl Description Rs. lakhs
1 Land On lease
2 Civil works Onlease 3 Plant machinery 24.000 4 Laboratory equipment 1.000 5 Transport vehicle 2 LCV 10.000 6 Pollution control equipment 0.000 7 Energy conservation equipment 0.000 8 Cost of power connection 0.800 9 Cost of electrification 1.000 10 Erection and commissioning 1.400 11 Cost of machinery spares 0.500 12 Cost of office equipment 0.500 13 Deposits if any 1.500 14 Company formation expenses 0.250 15 Gestation period expenses 1.000 16 Sales tax registration expenses 0.100 17 Initial advertisement and publicity 5.000 18 Contingencies 0.300 19 Working capital margin money 7.000
20 Total 54.350
13. Working capital requirements per month
a. Salaries and wages
Sl Description No of
persons salary / Total
month (Rs. lakhs) 1 Production Manager 1 0.150 2 Production supervisor cum
chemist 3 0.300 3 Skilled workers 3 0.180 4 Unskilled workers 30 0.900 5 Administrative staff 3 0.300 6 Security staff 3 0.120 7 Total 43 1.950
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b. Raw material requirement per month
Sl Description Qty
(kgs) Rate / kg (Rs) (Rs. lakhs) Value 1 Maida 50000 15.00 7.500 2 Vanaspathi 12500 65.00 8.125 3 Invert sugar 5000 16.00 0.800 4 Sugar 15500 17.00 2.635 5 Ammonium bi carbonate 335 10.00 0.035 6 Sodium bicarbonate 450 10.00 0.045 7 Skimmed milk powder 2750 120.00 3.300 8 Salt 500 5.00 0.025 9 Colours and flavours 50 200.00 1.000 10 Water 25000 0.025
11 Total raw material 23.490
c. Packaging material requirement per month
Sl Description Qty Rate / unit
Rs) (Rs. lakhs) Value 1 Primary packaging
material – metallized polyester – poly film
450.kgs 250 1.125 2 Cartons and straps 11250 nos 20 2.250
3 Total 3.375
Total raw + packaging material = Rs. 26.865 lakhs
d. Utilities per month
Sl Description Rs. lakhs
1 Power 30000 kwh @ Rs. 6.00 per unit 1.800
2 Water 0.050
3 Boiler fuel 0.000
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e. Contingent expenses per month
Sl Description Rs. lakhs
1 Rent for processing shed 0.300 2 Postage and stationery 0.010 3 Telephones, fax etc. 0.500 4 Consumable stores 0.100 5 Repairs and maintenance 0.281 6 Local transports, loading and unloading 0.180 7 Advertisement and publicity @ 2% of sales 0.750 8 Insurance 0.042 9 Sales expenses @ 2% of sales 0.750 10 Miscellaneous expenses @ 1% of sales 0.375 11 Trade incentives @ 2% of sales 0.750 12 Taxes @ 4% 1.500 13 Total contingent expenses 5.538 f. Total working capital requirement per month
Sl Description Rs. lakhs
1 Salaries and wages 1.950 2 Raw material and packaging material 26.865 3 Utilities 1.850 4 Contingent expenses 5.538
5 Total 36.203
14. Means of finance
Sl Description Rs. lakhs
1 Total Project Cost 54.350
2 Equity 18.117
3 Debt 36.233
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15. Financial analysis
Sl Description Rs. lakhs
1 Total recurring cost per year 434.436 2 Depreciation on land and building 0.000 3 Depreciation on machinery and vehicles 3.600 4 Depreciation on furnaces 0.000 5 Depreciation on moulds and fixtures 0.100 6 Depreciation on office equipment 0.100 7 Interest on long term loan @ 12% 4.348 8 Interest on short term borrowings@ 12% 3.480 9 Total cost of production 446.064
16. Turnover per year
Sl Item Qty Rate/unit
(Rs) Rs. lakhs Total
1 Biscuits 750,000 kgs 62 465
17. Viability analysis
Sl Description Value
1 Net profit before income tax (Rs. lakhs) 18.936 2 Net profit ratio 4.1% 3 Internal rate of return 22.6% 4 Break even percentage 37% 5 Debt service coverage ratio 2.012
List of machinery suppliers for biscuits
1. Nagpal Brothers; C-127, Mayapuri Industrial Area Phase - II, (Opositte State Bank of India), New Delhi. 110064; Tel: 011 - 28117631; 011 – 28116407; Fax: 011 - 28116884
2. Gurunanak Engineering Corporation, No. 2-3-685/5, Amberpet, Hyderabad. 500013; Tel: 040 – 27408249; 040 – 27406978
3. Mangal Engineering Works, Factory Area, Patiala 147001, Punjab. Tel: 0175 - 2364702; Fax: 0175 – 2360652
4. Mangal Machines Private Limited, Factory Area, Patiala 147001, Punjab. Tel: 0175 – 2360180; 0175 – 2355486; ; Fax: 0175 – 2360652
5. Om Engineering Works, 222, Sector 6, Panchkula, Haryana 134109; Tel: 0172 - 2578525; Fax: 0172 - 2585850
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