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Process Flow of Spice
Business
INTRODUCTION
โ–  Spices play an important role in enhancing the flavour and taste of
the processed foods.They are also used in medicine because of
their carminative stimulating and digestive properties.
โ–  Although spices are traded chiefly in an unprocessed form,
processed form like curry and spice powder have great demand in
market.
Basic functions of
spices
Chilli
28%
Mint Products
19%
Cumin
Spice oil and
Olepresin
11%
Turmeric
7%
Pepper
3%
Curry powder
and paste
4%
Crdamom
2%
2% CorianderGinger
1%
EXPORT DURING 2018-19
Other spicesโ€ฆ
Export of spice commodities
15%
๏‚ง About 9.1 M T of spice is produced in an area of 3.97 M ha
(2018-19)
๏‚ง Leading products in export are Chilli, Mint products, Cumin
Spice oil & Oleoresins, turmeric etc. (2018-19)
Area, production and
export scenario of spices
MARKET OPPORTUNITIES
โ– 
โ– 
โ– 
โ– 
Spices are essential ingredients imparting taste and flavour to
food preparations.
Have high demand in restaurants, hotels, catering services, food
processing industries, and road side eateries, house holds and so on.
Spices are fast moving consumable items and have large potential there has
to be a wide-spread network of dealers or retailers backed up by
advertisements in local media.
Total export of spices from the country during the year 2009-10, 2010-11
and 2011-12 is estimated to be Rest. 55650 laces, Rest. 684070/- laces and
Rest.
978342/- laces respectively.
PRODUCTS
Spice marketing in local territorials
PROJECT ECONOMICS (SOURCING)
R AW MATERIAL REQUIRED
PROCUREMENT OF SPICES:
๏ƒ˜ Spices grown on Indian fields provide the finest perfume and flavor. It is
of paramount essence that the quality control process for us begin on
the fields (at the production centers).
๏ƒ˜ When it comes to producing high-quality spices, drying is an important
step. The results of the other phases in the manufacturing process are
greatly influenced by the level of perfection achieved during the drying
process. Proper drying is key to keeping the fragrance and flavor of the
material. The material is naturally dried by sunlight but roasted if
needed to maintain optimum moisture content.
๏ƒ˜ All bulk seeds are gathered in a warehouse and mass dried before being
delivered to various places in small and jumbo bags, depending on the
needs. A seed is often packaged in 25 kg bags, 625 kg bulk bags, or 1000
kg jumbo bag. To preserve quality, proper transportation is required. Itโ€™s
critical to have the correct supply chain in place.
CLEANING OF DRIED SPICES
๏ƒ˜ Before processing, the crop should be cleaned. The first step is to use a
winnowing basket to eliminate dust and grime. Bamboo, palm, or other
leaves can be used to make this. Someone who is used to this type of
labor can swiftly and effectively remove the dust, grime, and stones.
๏ƒ˜ Contaminants are removed from spices and herbs by washing them with
weak alkaline cleaning solutions and neutralizing agents, then passing
them through concentric zones with counter-current flow, spray rinsing,
and drying.
๏ƒ˜ Clean and dry material is kept in an intermediate storage silo, a tank, or a
hopper near the process area, and the stored material is pneumatically
delivered to the grinding machine for further processing. A variety
of pneumatic conveying systems can be used depending on the material
to be treated, its qualities, and the desired output.
Workers working on spice laboratory
PRODUCTS
SPICES GRINDING SYSTEM
Seed Spices grinding plant which includes individual processes like
1.Cleaning
2.Grinding
3.Sifting
4.Blending
5.Packing
Features of Grinding System :
๏‚ง LowTemperature GrindingTechnology: with the help of Heat exchanger cold air is
taken inside the grinding chamber to avoid temperature rise and minimize moisture
&Volatile oil losses
๏‚ง Cryogenic GrindingTechnology: seeds spices are blanketed in liquid Nitrogen and
then grounded to the required fineness.This helps to keep intact volatile Oil,
Aroma & inherent moisture
QUALITY CONTROL AND
STANDARDS
๏ฑ Stringent quality control measures and quality
certification from internationally recognized
agencies.
๏ฑ Pre-shipment inspection and validation of
quality checks
๏ฑ Spice Board awards- Indian Spices Logo as mark
of genuine, superior quality Indian spices &
Spice House Certificate
๏ฑ Sample testing with the various international
agencies such as American Spice trade
organization, International Pepper Community
and Erofins Laboratory (Germany)
MIXING
๏ฑ By pneumatically connecting grinding equipment
to mixers, spice powders can be compressed and
mixed according to customer requirements. As
with the previous process, this is likewise fully
automated and requires no operator interaction.
๏ฑ The total processing system is designed to operate
continuously, even when mixing is a batch
process. The finished commodities are emptied
into the tiny hopper when the mixing cycle is
done, and the material is pneumatically carried
into the intermediate storage silo/tank.
POST-MIXING
๏ฑ If you want to store the finished spice powders efficiently and
easily integrate them into consumer packaging, 25 kg bags or
jumbo bags or Intermediate Bulk Containers (IBCs) are a great
choice.
๏ฑ After final mixing, selecting the appropriate automatic bagging
machine for finished goods is vital to guarantee that the
material given to the consumer is weighed correctly in its
packing.
๏ฑ To pick the correct bagging machine, you must first establish the
sort of product for which the machine is required, the material of
the packaging you wish to use, and the throughput, or the
number of bags that need to be filled per minute. The final bags
are then either heat sealed or stitched before being dispatched.
CONTDโ€ฆ
6 Sieving m/c. locally fabricated one 5000/- 5000
7 Automatic form fill and seal m/c (5 gm. to
100 gm.)
one ---------- 1,80,000
8 Automatic form, fill & seal machine (50
gm. to 250 gm.)
two 2,50,000 5,00,000
9 Testing equipment & lab. Accs. LS ---------- 40000
10 Office furniture, comp printer LS ---------- 40000
11 Erection, electrification charges@ 10% ------ ---------- 1,03,300
Total 11,36,300
PRE-OPERATIVE EXPENDITURE
Project profile 300
Telephone 3,000
Advance for packaging material (Pouch,
cartoon, etc )
1,50,000
Travel 15,000
Sales tax regn. 5,000
Other misc. exp. 5,000
Total 1,78,300
Fixed capital Inv. = 27, 15,000 + 11, 36,300 + 1, 78,300 = 40,
29,600/-
STRATEGY OF PROJECT IMPLEMENTATION
โ– 
โ– 
โ– 
The implementation strategy is the most detailed component of the proposed
strategic implementation framework.
This step requires the definition of robust actions, the evaluation of budgetary
requirements, the study of time and organisational constraints, the elaboration
of human resource issues, management and plan coordination, migration and
diffusion etc.
In addition, the action plans need to be examined concerning its risks, strategic
importance and harmonised integration within the overall evolution of the
specific organisation.
CONTDโ€ฆ
There are three main stages to the development of the implementation strategy:
1)Definition of action plan elements,
2)Elaboration of action plan, and
3)Risk mitigation and coping strategies.
ORGANIZATIONAL STRUCTURE
Jugni Spice Enterprise
โ– Manager :
โ– Workers in department :
โ– Salesman :
FINANCE
โ– 
โ– 
โ– 
Own capital
Loan from Banks
From other sources
4Ps โ€“ 4Cs
โ– 
โ– 
โ– 
โ– 
PRODUCT -CUSTOMERSOLUTION
PRICE -CUSTOMERCOST
PLACE - CONVENIENCE
PROMOTION -COMMUNICATION
PRODUCT - CUSTOMER SOLUTION
โ– 
โ– 
โ– 
Products should be satisfactory with respect to the costumerโ€™s need.
We try to produce good quality product, better design by local skilled laborers
which will suit the customers.
We produces different types of spices like chilly powder, cinnamon powder,
turmeric powder, ginger paste etc.
PRICE - CUSTOMER COST
โ– 
โ– 
The price should be affordable and acceptable by the customers.
We provides a packet of 100g Lal Mirchi chilly powder @ RS24.50 while MTR
provides the same product @ RS 27.
PLACE - CONVENIENCE
โ– 
โ– 
โ– 
The place should be convenient with good transportation and marketing
facility.
Especia Spice Enterprise is located inside Belvai NAC to the side of NH-13.
The market is very close to the production house.
PROMOTION - COMMUNICATION
โ– 
โ– 
โ– 
Promotion aims at proper publicity and marketing of the product by influencing
the customer.
Especia Spice Enterprise has hoardings in the Majestic bus stand and have also
pasted wall posters in various streets of Mangaluru.
The Showroom is in the roadside. So Especia Spice Enterprise has also
hoardings and light board near the start up.
SWOT ANALYSIS
STRENGTH
โ– Good relationship with customers
โ– Good internal communications
โ– High traffic location
โ– Successful marketing strategies
โ– Reputation for innovation
โ– Excellent staff with knowledge of existing products
CONTDโ€ฆ
WEAKNESS
โ–ช Currently struggling to meet
deadlines
โ–ช High rental costs
โ–ช Poor record keeping
โ–ช
โ–ช
โ–ช
Cash flow problems
Start up is very young
Market research data may be out
of date
CONTDโ€ฆ
OPPORTUNITIES
โ– Similar products on the market are not as
reliable or are more expensive
โ– Loyal customers
โ– Product could be on the market for
festive
โ– Customer demand - have asked sales staff
for similar product
CONTDโ€ฆ
THREATS
โ– Inadequate production capacity
โ– Unavailability of skilled laborers
โ– Tough competition
โ– Changing customer taste and preference
โ– Competitors have launched a new advertising
campaign
BCG GROWTH-SHARE MATRIX
BCG Matrix provides a graphic representation for an organization to examine
different businesses in itโ€™s portfolio on the basis of their relative market share and
industry growth rates.
a)Stars- large market share in a fast growing industry.
b)CashCows- large market share in a mature, slow growing industry.
c)Question Marks- low relative market share in a high growth industry.
d)Dogs- weak market shares in low-growth markets.
CONTDโ€ฆ
โ– 
โ– 
โ– 
Especia Spice Enterprise and
Industry is a small organization
having very weak market share but
high growth.
Due to various reasons like
unavailability of skilled manpower,
changing customer preferences
etc., it faces lots of challenges to
grow its business.
Hence it can be represented as
โ€œQuestion Marks-โ€ in the BCG
matrix.
FUTURE EXPANSION OFTHE ENTERPRISE
โ– 
โ– 
We decide to go global in a number of ways. Growing markets, rising consumer
spending, improved business climate--sometimes the only place to find these
things is overseas.
Doing business internationally can take the form of exporting, licensing, a joint
venture or manufacturing, but whatever form you choose, the basic business
rules apply: assess customer demand, gain legal and accounting assistance,
protect intellectual property and obey regulations.
CONCLUSION
โ– 
โ– 
โ– 
Being an entrepreneur instead of an employee means you need to brand
yourself differently, or at least more directly.
Your identity should be about what youโ€™ve done, not what title youโ€™ve been
given.
If you fail in business, itโ€™s up to you to rebuild.
spice-iii-150911200409-lva1-app6892_compressed (1).pptx

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spice-iii-150911200409-lva1-app6892_compressed (1).pptx

  • 1. Process Flow of Spice Business
  • 2. INTRODUCTION โ–  Spices play an important role in enhancing the flavour and taste of the processed foods.They are also used in medicine because of their carminative stimulating and digestive properties. โ–  Although spices are traded chiefly in an unprocessed form, processed form like curry and spice powder have great demand in market.
  • 4. Chilli 28% Mint Products 19% Cumin Spice oil and Olepresin 11% Turmeric 7% Pepper 3% Curry powder and paste 4% Crdamom 2% 2% CorianderGinger 1% EXPORT DURING 2018-19 Other spicesโ€ฆ Export of spice commodities 15% ๏‚ง About 9.1 M T of spice is produced in an area of 3.97 M ha (2018-19) ๏‚ง Leading products in export are Chilli, Mint products, Cumin Spice oil & Oleoresins, turmeric etc. (2018-19) Area, production and export scenario of spices
  • 5. MARKET OPPORTUNITIES โ–  โ–  โ–  โ–  Spices are essential ingredients imparting taste and flavour to food preparations. Have high demand in restaurants, hotels, catering services, food processing industries, and road side eateries, house holds and so on. Spices are fast moving consumable items and have large potential there has to be a wide-spread network of dealers or retailers backed up by advertisements in local media. Total export of spices from the country during the year 2009-10, 2010-11 and 2011-12 is estimated to be Rest. 55650 laces, Rest. 684070/- laces and Rest. 978342/- laces respectively.
  • 6. PRODUCTS Spice marketing in local territorials
  • 7. PROJECT ECONOMICS (SOURCING) R AW MATERIAL REQUIRED
  • 8. PROCUREMENT OF SPICES: ๏ƒ˜ Spices grown on Indian fields provide the finest perfume and flavor. It is of paramount essence that the quality control process for us begin on the fields (at the production centers). ๏ƒ˜ When it comes to producing high-quality spices, drying is an important step. The results of the other phases in the manufacturing process are greatly influenced by the level of perfection achieved during the drying process. Proper drying is key to keeping the fragrance and flavor of the material. The material is naturally dried by sunlight but roasted if needed to maintain optimum moisture content. ๏ƒ˜ All bulk seeds are gathered in a warehouse and mass dried before being delivered to various places in small and jumbo bags, depending on the needs. A seed is often packaged in 25 kg bags, 625 kg bulk bags, or 1000 kg jumbo bag. To preserve quality, proper transportation is required. Itโ€™s critical to have the correct supply chain in place.
  • 9. CLEANING OF DRIED SPICES ๏ƒ˜ Before processing, the crop should be cleaned. The first step is to use a winnowing basket to eliminate dust and grime. Bamboo, palm, or other leaves can be used to make this. Someone who is used to this type of labor can swiftly and effectively remove the dust, grime, and stones. ๏ƒ˜ Contaminants are removed from spices and herbs by washing them with weak alkaline cleaning solutions and neutralizing agents, then passing them through concentric zones with counter-current flow, spray rinsing, and drying. ๏ƒ˜ Clean and dry material is kept in an intermediate storage silo, a tank, or a hopper near the process area, and the stored material is pneumatically delivered to the grinding machine for further processing. A variety of pneumatic conveying systems can be used depending on the material to be treated, its qualities, and the desired output.
  • 10. Workers working on spice laboratory PRODUCTS
  • 11. SPICES GRINDING SYSTEM Seed Spices grinding plant which includes individual processes like 1.Cleaning 2.Grinding 3.Sifting 4.Blending 5.Packing Features of Grinding System : ๏‚ง LowTemperature GrindingTechnology: with the help of Heat exchanger cold air is taken inside the grinding chamber to avoid temperature rise and minimize moisture &Volatile oil losses ๏‚ง Cryogenic GrindingTechnology: seeds spices are blanketed in liquid Nitrogen and then grounded to the required fineness.This helps to keep intact volatile Oil, Aroma & inherent moisture
  • 12. QUALITY CONTROL AND STANDARDS ๏ฑ Stringent quality control measures and quality certification from internationally recognized agencies. ๏ฑ Pre-shipment inspection and validation of quality checks ๏ฑ Spice Board awards- Indian Spices Logo as mark of genuine, superior quality Indian spices & Spice House Certificate ๏ฑ Sample testing with the various international agencies such as American Spice trade organization, International Pepper Community and Erofins Laboratory (Germany)
  • 13. MIXING ๏ฑ By pneumatically connecting grinding equipment to mixers, spice powders can be compressed and mixed according to customer requirements. As with the previous process, this is likewise fully automated and requires no operator interaction. ๏ฑ The total processing system is designed to operate continuously, even when mixing is a batch process. The finished commodities are emptied into the tiny hopper when the mixing cycle is done, and the material is pneumatically carried into the intermediate storage silo/tank.
  • 14. POST-MIXING ๏ฑ If you want to store the finished spice powders efficiently and easily integrate them into consumer packaging, 25 kg bags or jumbo bags or Intermediate Bulk Containers (IBCs) are a great choice. ๏ฑ After final mixing, selecting the appropriate automatic bagging machine for finished goods is vital to guarantee that the material given to the consumer is weighed correctly in its packing. ๏ฑ To pick the correct bagging machine, you must first establish the sort of product for which the machine is required, the material of the packaging you wish to use, and the throughput, or the number of bags that need to be filled per minute. The final bags are then either heat sealed or stitched before being dispatched.
  • 15. CONTDโ€ฆ 6 Sieving m/c. locally fabricated one 5000/- 5000 7 Automatic form fill and seal m/c (5 gm. to 100 gm.) one ---------- 1,80,000 8 Automatic form, fill & seal machine (50 gm. to 250 gm.) two 2,50,000 5,00,000 9 Testing equipment & lab. Accs. LS ---------- 40000 10 Office furniture, comp printer LS ---------- 40000 11 Erection, electrification charges@ 10% ------ ---------- 1,03,300 Total 11,36,300
  • 16. PRE-OPERATIVE EXPENDITURE Project profile 300 Telephone 3,000 Advance for packaging material (Pouch, cartoon, etc ) 1,50,000 Travel 15,000 Sales tax regn. 5,000 Other misc. exp. 5,000 Total 1,78,300 Fixed capital Inv. = 27, 15,000 + 11, 36,300 + 1, 78,300 = 40, 29,600/-
  • 17. STRATEGY OF PROJECT IMPLEMENTATION โ–  โ–  โ–  The implementation strategy is the most detailed component of the proposed strategic implementation framework. This step requires the definition of robust actions, the evaluation of budgetary requirements, the study of time and organisational constraints, the elaboration of human resource issues, management and plan coordination, migration and diffusion etc. In addition, the action plans need to be examined concerning its risks, strategic importance and harmonised integration within the overall evolution of the specific organisation.
  • 18. CONTDโ€ฆ There are three main stages to the development of the implementation strategy: 1)Definition of action plan elements, 2)Elaboration of action plan, and 3)Risk mitigation and coping strategies.
  • 19. ORGANIZATIONAL STRUCTURE Jugni Spice Enterprise โ– Manager : โ– Workers in department : โ– Salesman :
  • 21. 4Ps โ€“ 4Cs โ–  โ–  โ–  โ–  PRODUCT -CUSTOMERSOLUTION PRICE -CUSTOMERCOST PLACE - CONVENIENCE PROMOTION -COMMUNICATION
  • 22. PRODUCT - CUSTOMER SOLUTION โ–  โ–  โ–  Products should be satisfactory with respect to the costumerโ€™s need. We try to produce good quality product, better design by local skilled laborers which will suit the customers. We produces different types of spices like chilly powder, cinnamon powder, turmeric powder, ginger paste etc.
  • 23. PRICE - CUSTOMER COST โ–  โ–  The price should be affordable and acceptable by the customers. We provides a packet of 100g Lal Mirchi chilly powder @ RS24.50 while MTR provides the same product @ RS 27.
  • 24. PLACE - CONVENIENCE โ–  โ–  โ–  The place should be convenient with good transportation and marketing facility. Especia Spice Enterprise is located inside Belvai NAC to the side of NH-13. The market is very close to the production house.
  • 25. PROMOTION - COMMUNICATION โ–  โ–  โ–  Promotion aims at proper publicity and marketing of the product by influencing the customer. Especia Spice Enterprise has hoardings in the Majestic bus stand and have also pasted wall posters in various streets of Mangaluru. The Showroom is in the roadside. So Especia Spice Enterprise has also hoardings and light board near the start up.
  • 26. SWOT ANALYSIS STRENGTH โ– Good relationship with customers โ– Good internal communications โ– High traffic location โ– Successful marketing strategies โ– Reputation for innovation โ– Excellent staff with knowledge of existing products
  • 27. CONTDโ€ฆ WEAKNESS โ–ช Currently struggling to meet deadlines โ–ช High rental costs โ–ช Poor record keeping โ–ช โ–ช โ–ช Cash flow problems Start up is very young Market research data may be out of date
  • 28. CONTDโ€ฆ OPPORTUNITIES โ– Similar products on the market are not as reliable or are more expensive โ– Loyal customers โ– Product could be on the market for festive โ– Customer demand - have asked sales staff for similar product
  • 29. CONTDโ€ฆ THREATS โ– Inadequate production capacity โ– Unavailability of skilled laborers โ– Tough competition โ– Changing customer taste and preference โ– Competitors have launched a new advertising campaign
  • 30. BCG GROWTH-SHARE MATRIX BCG Matrix provides a graphic representation for an organization to examine different businesses in itโ€™s portfolio on the basis of their relative market share and industry growth rates. a)Stars- large market share in a fast growing industry. b)CashCows- large market share in a mature, slow growing industry. c)Question Marks- low relative market share in a high growth industry. d)Dogs- weak market shares in low-growth markets.
  • 31. CONTDโ€ฆ โ–  โ–  โ–  Especia Spice Enterprise and Industry is a small organization having very weak market share but high growth. Due to various reasons like unavailability of skilled manpower, changing customer preferences etc., it faces lots of challenges to grow its business. Hence it can be represented as โ€œQuestion Marks-โ€ in the BCG matrix.
  • 32. FUTURE EXPANSION OFTHE ENTERPRISE โ–  โ–  We decide to go global in a number of ways. Growing markets, rising consumer spending, improved business climate--sometimes the only place to find these things is overseas. Doing business internationally can take the form of exporting, licensing, a joint venture or manufacturing, but whatever form you choose, the basic business rules apply: assess customer demand, gain legal and accounting assistance, protect intellectual property and obey regulations.
  • 33. CONCLUSION โ–  โ–  โ–  Being an entrepreneur instead of an employee means you need to brand yourself differently, or at least more directly. Your identity should be about what youโ€™ve done, not what title youโ€™ve been given. If you fail in business, itโ€™s up to you to rebuild.