PROJECT REPORT

Of

NAMKEEN MANUFACTURING UNIT

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Namkeen Manufacturing 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 : [email protected]
Contact : +91 7526000333, 444, 555
 NAMKEEN MANUFACTURING UNIT

Introduction
Namkeen is the Hindi word used to describe a savory flavor. The
word namkeen is derived from the word Namak (meaning salt).
Namkeen is also used as a generic term to describe savory snack
foods. Both black and regular white salt are used in Indian cooking,
which gives it the salty flavor many people like. Other namkeen
snacks common in Indian cuisine include khaara, farsan, chivda,
sav, chips and bhujiya. Namkeen of Indore and Ratlam are two
snacks that are very well known for their tastes.
Namkeen is a small service of food and generally eaten between
meals. Snacks come in a variety of forms including packaged snack
foods and other processed foods, as well as items made from fresh
ingredients at home.
Traditionally, Namkeen are prepared from ingredients commonly
available at home without a great deal of preparation. Often cold
cuts, fruits, leftovers, nuts, sandwiches, and sweets are used as
snacks.
Namkeen foods are typically designed to be portable, quick, and
satisfying. Processed snack foods, as one form of convenience
food, are designed to be less perishable, more durable, and more
portable than prepared foods. They often contain substantial
amounts of sweeteners, preservatives, and appealing ingredients
such as chocolate, peanuts, and specially-designed flavors (such
as flavoured potato chips).
Beverages, such as coffee, are not generally considered snacks
although they may be consumed along with or in lieu of snack
foods.

Ingredients
The main ingredients of namkeen are besan, Oil, Sices, packaging
material, dal, peanut, potato, dry fruits etc. based on the type of
namkeen.
Description of Namkeen Machine
Machinery for Namkeen includes the following:
 Dough Mixer
 Bhujia sev Machine
 Rectangular batch tilting fryer with diesel Burner
 Seasoning drum
 Packaging Machine

These machines are mainly used to produce final eatable Namkeen

from the raw material. With the help of these machines the work of
mixing, heating, frying, filling & sealing completes in a very short
span.

Namkeen Market Analysis

Namkeen is the dominant segment, followed by the Extruded
Snacks. The market is also segmented into organized and
unorganized sector of which unorganized is the dominant market.

The India Snacks Market will be more than INR 1 Billion by the end
of 2024.

The future of India Snacks Market can be judged from the fact that
this industry is expected to grow with double digit CAGR for the
time frame of 2018 to 2024. India snacks market is dived between
organized players and unorganized market. At present Unorganized
market is dominating the India snacks market. But this scenario is
expected to change during the forecast period of 2018-2024. India
Snacks Market is growing due to following factors Lifestyle
Changes, Rising Urbanization, Growing Middle Class Population,
Local Availability and Availability of Snacks in Small Package Size,
Low Price and Company’s Strategies to focus on regional taste..
Namkeen Manufacturing Process

 Procurement of raw material.

 Preparation of dough with the help of dough mixer.
 After that take the dough into the frying section.
 After frying, mix all the other ingredients like: peanut, spices
etc. as per the different taste of the namkeen.
 Packaging of goods.
 Transportation.

Machinery &Equipment’s required:

Name Cost
Main Machinery cost 10,75,000
Total 10,75,000

 Cost of the machine is exclusive of GST & other transportation cost &
value of the machine varies with the change in batch size.

Land &Building required:

Land required 1500 Square Feet (approx.)

Approximate rent for the same is 30000.

Labour Requirement:

6 Manpower is required for Namkeen Manufacturing unit. Includes:

1 skilled Labour

4-5 Unskilled Labour

Raw Material Requirement of Namkeen

S.N. Particulars Rate per KG

1 Besan 65
2 Oil 90
3 Spices 200
5 Dal 80
6 Peanut 110
7 Potato 12

Average raw material cost per KG: Rs. 50-60

Size of the product

Namkeen products are packed in different types of packaging product

with different sizes.

Pouch Packaging Size

 50 gram
 100 gram
 250 gram
 500 gram
 1 KG

Namkeen License &registration

For Proprietor:
 Obtain the GST registration.
 FSSAI License.
 Fire/ Pollution Registration as required.
 Choice of a Brand Name of the product and secure the name with
Trademark if required.
Implementation Schedule

S.N. Activity Time Required

(in Months)
1 Acquisition Of premises 1
2 Construction (if Applicable) 1- 2 Months
3 Procurement & installation of Plant & Machinery 1
4 Arrangement of Finance 1
5 Requirement of required Manpower 1
Total time Required (some activities shall run 2-3 Months
concurrently)
 PROJECT AT A GLANCE

1 Name of the Entreprenuer xx

2 Constitution (legal Status) : xx
3 Father's/Spouce's Name xx
4 Unit Address :
Taluk/Block: xx
District : xx
Pin:
E-Mail : xx
Mobile xx
5 Product and By Product : Namkeen
Name of the project / business
6 activity proposed :

7 Cost of Project : Rs. 13.69

8 Means of Finance

Term Loan Rs. 12.32 Lacs

25% of 13.69 Lacs
KVIC Margin Money Rs. (3.42 Lacs)
Own Capital Rs. 2.37 Lacs
Debt Service Coverage Ratio
9 :
4 years 11
10 Pay Back Period : months
11 Project Implementation Period : 6 months
12 Employment :
13 Power Requirement : 15 KW connection
Besan, oil, dry fruits,
14 Major Raw materials : peanut
Estimated Annual Sales Turnover 88 Lacs (at 50%
15 : capacity)
Detailed Cost of Project & Means of
16 Finance
COST OF PROJECT (Rs. In Lacs)
Particulars Amount
Land
Building & Civil
Work -
Plant & Machinery 12.69
Furniture &
Fixtures 1.00
Pre-operative Expenses
 Contingencies
Working Capital
Requirement 10.00
Total 23.69
MEANS OF FINANCE
Particulars Amount
Own Contribution 2.37
Bank Finance 12.32
working capital
from bank 9.00
Total 23.69
KVIC Margin 25% of 13.69 Lacs
Monery (3.42 Lacs)
 FINANCIAL ASSISTANCE REQUIRED

Term Loan of Rs. 12.32Lacs and Working Capital limit of Rs. 9.00 Lacs

COST OF
PROJECT PARTICULARS AMOUNT AMOUNT AMOUNT
10.00% 90.00%
Building Civil Work

Plant & Machinery 12.69 1.27 11.42

Furniture & Fixtures and Other
Assets 1.00 0.10 0.90

Working capital 10.00 1.00 9.00

Total 23.69 2.47 21.32

MEANS OF
FINANCE PARTICULARS AMOUNT

Own Contribution 2.37

Bank Loan 12.32

Working capital Limit 9.00

Total 23.69
COMPUTATION OF PRODUCTION OF Namkeen

Items to be Manufactured

Namkeen

machine capacity per day 100 KG per hour

machine capacity per annum 192000KG

wastage 5%

Raw Material Requirement 202,105 KG

Production of Namkeen
Production Capacity KG

1st year 50% 96,000

2nd year 55% 105,600

3rd year 60% 115,200

4th year 65% 124,800

5th year 70% 134,400

Raw Material Cost

Year Capacity KG Amount

Utilisation (Rs. in lacs)

1st year 50% 60.00 60.63

2nd year 55% 62.00 68.92

3rd year 60% 64.00 77.61

4th year 65% 65.00 85.39

5th year 70% 66.00 93.37

 COMPUTATION OF SALE

Particulars 1st year 2nd year 3rd year 4th year 5th year
Op Stock - 8,000 8,800 9,600 10,400
Production 96,000 105,600 115,200 124,800 134,400
Less : Closing Stock 8,000 8,800 9,600 10,400 11,200
Net Sale 88,000 104,800 114,400 124,000 133,600
sale price per KG 100.00 102.00 103.00 104.00 105.00

Sales (in Lacs) 88.00 106.90 117.83 128.96 140.28

BREAK UP OF LABOUR CHARGES

Particulars Wages No of Total

Per Month Employees Salary

Skilled 12000 1 12000

Unskilled 10000 5 50000

Total Salary Per Month 62000

Total Annual Labour Charges (in Lacs) 7.44

BREAK UP OF STAFF Charges

Particulars Wages No of Total

Per Month Employees Salary

Accountant 15000 1 15000

Helper 7000 1 7000

Total Salary Per Month 22000

Total Annual Labour Charges (in Lacs) 2.64

Utility Charges at 100% capacity (per month)
Particulars value Description
Power connection required 15 KWH
consumption per day 120 units
Consumption per month 3000 units
Rate per Unit 7 Rs.
power Bill per month 21000 Rs.

PROJECTED PROFITABILITY STATEMENT

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

Capacity Utilisation % 50% 55% 60% 65% 70%

SALES

Gross Sale

Namkeen 88.00 106.90 117.83 128.96 140.28

Total 88.00 106.90 117.83 128.96 140.28

COST OF SALES

Raw Mateiral Consumed 60.63 68.92 77.61 85.39 93.37

Elecricity Expenses 2.52 2.77 3.05 3.35 3.69

Depriciation 2.00 1.71 1.46 1.24 1.06

Consumables 3.83 4.65 5.13 5.61 6.10

Repair & maintennace 2.82 3.42 3.77 4.13 4.49

other direct expenses 2.64 3.21 3.53 3.87 4.21

Packaging Charges 3.17 3.85 4.24 4.64 5.05

Cost of Production 77.61 88.52 98.79 108.23 117.97

Add: Opening Stock /WIP - 6.47 7.38 8.23 9.02

Less: Closing Stock /WIP 6.47 7.38 8.23 9.02 9.83

Cost of Sales 71.14 87.61 97.93 107.45 117.16

GROSS PROFIT 16.86 19.28 19.90 21.51 23.12

salary to staff 2.64 2.90 3.19 3.51 3.87

Interest on Term Loan 1.22 1.14 0.92 0.69 0.08

Interest on working Capital 0.99 0.99 0.99 0.99 0.99

Rent 3.60 3.96 4.36 4.79 5.27

Selling & adm Exp 3.96 4.81 5.30 5.80 6.31

TOTAL 12.41 13.80 14.76 15.79 16.51

NET PROFIT 4.45 5.48 5.14 5.72 6.61

Taxation - 0.10 0.03 0.15 0.33

PROFIT (After Tax) 4.45 5.38 5.11 5.57 6.27

PROJECTED BALANCE SHEET

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

Liabilities

Capital

opening balance 5.07 8.45 10.91 13.79

Add:- Own Capital 2.37

Add:- Retained Profit 4.45 5.38 5.11 5.57 6.27

Less:- Drawings 1.75 2.00 2.65 2.70 3.00

Closing Blance 5.07 8.45 10.91 13.79 17.06

Subsidy Reserve 3.42 3.42 3.42 - -

Term Loan 11.30 9.26 7.22 1.76 -

Working Capital Limit 9.00 9.00 9.00 9.00 9.00

Sundry Creditors 3.03 3.22 3.88 4.55 5.29

Provisions & Other Liab 0.30 0.40 0.55 0.66 0.83

TOTAL : 32.12 33.74 34.98 29.76 32.18

Assets

Fixed Assets ( Gross) 13.69 13.69 13.69 13.69 13.69

Gross Dep. 2.00 3.71 5.17 6.41 7.47

Net Fixed Assets 11.68 9.97 8.52 7.28 6.22

FD of Subsidy 3.42 3.42 3.42

Current Assets

Sundry Debtors 2.57 5.34 6.38 6.45 7.60

Stock in Hand 11.52 13.12 14.70 14.71 16.83

Cash and Bank 2.93 1.88 1.96 1.32 1.52

TOTAL : 32.12 33.74 34.98 29.76 32.18

PROJECTED CASH FLOW STATEMENT

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

SOURCES OF FUND

Own Margin 2.37

Net Profit 4.45 5.48 5.14 5.72 6.61

Depriciation & Exp. W/off 2.00 1.71 1.46 1.24 1.06

Increase in Cash Credit 9.00 - - - -

Increase In Term Loan 12.32 - - - -

Increase in Creditors 3.03 0.18 0.66 0.67 0.74

Increase in Provisions & Oth lib 0.30 0.10 0.15 0.11 0.17

increase in subsidy 3.42

TOTAL : 36.89 7.47 7.41 7.75 8.57

APPLICATION OF FUND

Increase in Fixed Assets 13.69

Increase in Stock 11.52 1.60 1.58 0.01 2.12

Increase in Debtors 2.57 2.78 1.04 0.07 1.15

Repayment of Term Loan 1.02 2.04 2.04 5.46 1.76

Increase in FD 3.42 - -

Drawings 1.75 2.00 2.65 2.70 3.00

Taxation - 0.10 0.03 0.15 0.33

TOTAL : 33.96 8.52 7.34 8.39 8.36

Opening Cash & Bank Balance - 2.93 1.88 1.96 1.32

Add : Surplus 2.93 - 1.05 0.08 - 0.64 0.20

Closing Cash & Bank Balance 2.93 1.88 1.96 1.32 1.52
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

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

Finished Goods

6.47 7.38 8.23 9.02 9.83

Raw Material

5.05 5.74 6.47 5.69 7.00

Closing Stock 11.52 13.12 14.70 14.71 16.83

COMPUTATION OF WORKING CAPITAL REQUIREMENT

TRADITIONAL METHOD

Particulars Amount Own Margin Bank Finance

Finished Goods & Raw Material 11.52

Less : Creditors 3.03

Paid stock 8.49 10% 0.85 90% 7.64

Sundry Debtors 2.57 10% 0.26 90% 2.31

11.05 1.11 9.95

WORKING CAPITAL LIMIT DEMAND ( from Bank) 9.00

2nd Method

PARTICULARS 1st year 2nd year

Total Current Assets 17.02 20.35

Other Current Liabilities 3.33 3.62

Working Capital Gap 13.69 16.73

Min Working Capital

25% of WCG 3.42 4.18

Actual NWC 4.69 7.73

item III - IV 10.26 12.55

item III - V 9.00 9.00

MPBF (Lower of VI & VII) 9.00 9.00

3rd Method

PARTICULARS 1st year 2nd year

Total Current Assets 17.02 20.35

Other Current Liabilities 3.33 3.62

Working Capital Gap 13.69 16.73

Min Working Capital

25% of Current Assets 4.25 5.09

Actual NWC 4.69 7.73

item III - IV 9.43 11.64

item III - V 9.00 9.00

MPBF (Lower of VI & VII) 9.00 9.00

COMPUTATION OF DEPRECIATION

Description Plant & Machinery Furniture TOTAL

Rate of Depreciation 15.00% 10.00%

Opening Balance - - -

Addition 12.69 1.00 13.69

Total 12.69 1.00 13.69

Less : Depreciation 1.90 0.10 2.00

WDV at end of Year 10.78 0.90 11.68

Additions During The Year - - -

Total 10.78 0.90 11.68

Less : Depreciation 1.62 0.09 1.71

WDV at end of Year 9.16 0.81 9.97

Additions During The Year - - -

Total 9.16 0.81 9.97

Less : Depreciation 1.37 0.08 1.46

WDV at end of Year 7.79 0.73 8.52

Additions During The Year - - -

Total 7.79 0.73 8.52

Less : Depreciation 1.17 0.07 1.24

WDV at end of Year 6.62 0.66 7.28

Additions During The Year - - -

Total 6.62 0.66 7.28

Less : Depreciation 0.99 0.07 1.06

WDV at end of Year 5.63 0.59 6.22

s - - -

Total 5.63 0.59 6.22

Less : Depreciation 0.84 0.06 0.90

WDV at end of Year 4.78 0.53 5.32

Less : Depreciation 0.72 0.05 0.77

WDV at end of Year 4.07 0.48 4.54

Less : Depreciation 0.61 0.05 0.66

WDV at end of Year 3.46 0.43 3.89

CALCULATION OF D.S.C.R

1st 2nd 3rd 4th 5th

PARTICULARS year year year year year

CASH ACCRUALS 6.46 7.09 6.57 6.82 7.33

Interest on Term Loan 1.22 1.14 0.92 0.69 0.08

Total 7.67 8.23 7.48 7.51 7.41

REPAYMENT

Instalment of Term Loan 1.02 2.04 2.04 5.46 1.76

Interest on Term Loan 1.22 1.14 0.92 0.69 0.08

Total 2.24 3.18 2.96 6.15 1.83

DEBT SERVICE COVERAGE RATIO 3.43 2.59 2.53 1.22 4.04

AVERAGE D.S.C.R. 2.76

 REPAYMENT SCHEDULE OF TERM LOAN
Interest 11.00%
Closing
Year Particulars Amount Addition Total Interest Repayment Balance
ist Opening Balance

1st month - 12.32 12.32 - - 12.32

2nd month 12.32 - 12.32 0.11 - 12.32

3rd month 12.32 - 12.32 0.11 - 12.32

4th month 12.32 - 12.32 0.11 12.32

5th month 12.32 - 12.32 0.11 12.32

6th month 12.32 - 12.32 0.11 12.32

7th month 12.32 - 12.32 0.11 0.170 12.15

8th month 12.15 - 12.15 0.11 0.170 11.98

9th month 11.98 - 11.98 0.11 0.170 11.81

10th month 11.81 - 11.81 0.11 0.170 11.64

11th month 11.64 - 11.64 0.11 0.170 11.47

12th month 11.47 - 11.47 0.11 0.170 11.30

1.22 1.020
2nd Opening Balance

1st month 11.30 - 11.30 0.10 0.170 11.13

2nd month 11.13 - 11.13 0.10 0.170 10.96

3rd month 10.96 - 10.96 0.10 0.170 10.79

4th month 10.79 - 10.79 0.10 0.170 10.62

5th month 10.62 - 10.62 0.10 0.170 10.45

6th month 10.45 - 10.45 0.10 0.170 10.28

7th month 10.28 - 10.28 0.09 0.170 10.11

8th month 10.11 - 10.11 0.09 0.170 9.94

9th month 9.94 - 9.94 0.09 0.170 9.77

10th month 9.77 - 9.77 0.09 0.170 9.60

11th month 9.60 - 9.60 0.09 0.170 9.43

12th month 9.43 - 9.43 0.09 0.170 9.26

 1.14 2.040
3rd Opening Balance

1st month 9.26 - 9.26 0.08 0.170 9.09

2nd month 9.09 - 9.09 0.08 0.170 8.92

3rd month 8.92 - 8.92 0.08 0.170 8.75

4th month 8.75 - 8.75 0.08 0.170 8.58

5th month 8.58 - 8.58 0.08 0.170 8.41

6th month 8.41 - 8.41 0.08 0.170 8.24

7th month 8.24 - 8.24 0.08 0.170 8.07

8th month 8.07 - 8.07 0.07 0.170 7.90

9th month 7.90 - 7.90 0.07 0.170 7.73

10th month 7.73 - 7.73 0.07 0.170 7.56

11th month 7.56 - 7.56 0.07 0.170 7.39

12th month 7.39 - 7.39 0.07 0.170 7.22

0.92 2.040
4th Opening Balance

1st month 7.22 - 7.22 0.07 0.170 7.05

2nd month 7.05 - 7.05 0.06 0.170 6.88

3rd month 6.88 - 6.88 0.06 0.170 6.71

4th month 6.71 - 6.71 0.06 0.170 6.54

5th month 6.54 - 6.54 0.06 0.170 6.37

6th month 6.37 - 6.37 0.06 0.170 6.20

7th month 6.20 - 6.20 0.06 0.170 6.03

8th month 6.03 - 6.03 0.06 0.170 5.86

9th month 5.86 - 5.86 0.05 0.170 5.69

10th month 5.69 - 5.69 0.05 0.170 5.52

11th month 5.52 - 5.52 0.05 0.170 5.35

12th month(Subsidy
adjusted) 5.35 - 5.35 0.05 3.590 1.76
0.69 5.460
5th Opening Balance

1st month 1.76 - 1.76 0.02 0.170 1.59

 2nd month 1.59 - 1.59 0.01 0.170 1.42

3rd month 1.42 - 1.42 0.01 0.170 1.25

4th month 1.25 - 1.25 0.01 0.170 1.08

5th month 1.08 - 1.08 0.01 0.170 0.91

6th month 0.91 - 0.91 0.01 0.170 0.74

7th month 0.74 - 0.74 0.01 0.170 0.57

8th month 0.57 - 0.57 0.01 0.170 0.40

9th month 0.40 - 0.40 0.00 0.170 0.23

10th month 0.23 - 0.23 0.00 0.170 0.06

11th month 0.06 - 0.06 0.00 0.057 -

0.08 1.76

DOOR TO DOOR 59 MONTHS

MORATORIUM PERIOD 6 MONTHS

REPAYMENT PERIOD 53 MONTHS

Supplier Details:
Grace Food processing & Address:
packaging machinery Nambardar Estate, 85, taimoor
Nagar, New Friends Colony, New
Delhi- 110065
 DISCLAIMER

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considering specific requirement of the project, capacity and type of plant and
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