This document provides information about spirulina production including its cultivation process, quality specifications, cost estimation, financial analysis, health benefits, target market, government schemes, and success stories. Spirulina is a blue-green algae grown through cultivation in warm alkaline water, harvesting using filters, and drying. It is a superfood known for its high protein, nutrient, and antioxidant content. Production costs, monthly expenses, and projected profits are estimated to determine viability.
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Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
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Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
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2. INTRODUCTION
• Blue – green naturally occurring algae.
• Grown in warm and alkaline water.
• Known a SUPER FOODS AND FUTURE FOOD due to excellent
medicinal properties.
3. PRODUCTION
• PRODUCTION PROCESS OUTLINE-
1) Cultivation - Selected strains of algae are used for cultivation
in constant agitation of water.
2) Harvesting-The algal biomass is carefully harvested using
specially made filters to recover the biomass.
3) Processing-The harvested biomass is dried using the cross
flow drier. The produce obtained is in the form of flakes.
4. PRODUCTION FLOW
STRAINS OF ALGAE IN
WATER
EVENLY SPREAD AND
EXPOSURE TO SUNLIGHT
HARVESTING USING
FILTER
DRYING USING CROSS
FLOW DRYER
FLAKES ARE GROUNDED
IN THE PULVERIZER
5.
6. QUALITY SPECIFICATION
• Moisture - 3%
• Protein - 65%
• Fat - 7%
• Crude fibre - 9%
• Carbohydrates - 16%
• Energy - 346 K cal / 100 grams
• Mould and fungus - absent
• It should be free from any fermented odour, coliforms, salmonella and
streptococci bacteria.
8. LAND AND CONSTRUCTION COST
• Land required - 2 acres @ Rs. 1.00 lakh per acre = Rs. 2.00 lakhs. Constructed
area is 9000 square feet as follows:
Sr. Description Sq. feet
1 Cultivation Ponds 50’ X 20’ (5 nos) 5000
2 Process building 1000
3 Raw material store 500
4 Finished goods store 200
5 Laboratory 500
6 Administration office 500
7 Machinery spares area 300
8 Toilets 400
9 Miscellaneous area 600
10 Total 9000
Construction cost – Rs. 600 per square foot
Total cost of civil works – Rs. 54.00
lakhs Total cost of land and civil
works – Rs. 56.00 lakhs.
9. COSTING OF MACHINERY AND
EQUIPMENT
Sr. Description Rs. lakhs
1 Paddle wheel and motors – 5 nos 2.000
2 Vibratory sieve – 1 no 1.500
3 Cross flow type tray dryer – 1 no 1.500
4 Pulveriser – 1 no 0.500
5 Packing machine 1.500
6 Water treatment plant 3.000
7 Effluent treatment plant 3.000
8 Total 13.000
11 Laboratory equipment 3.000
12 Grand total machinery and equipment 16.000
10. PROJECT COST
Sr. Description Rs. lakhs
1 Land 2.000
2 Civil works 54.000
3 Plant machinery 10.000
4 Laboratory equipment 3.000
5 Transport vehicle (Tata Ace) 3.760
6 Effluent treatment plant 3.000
7 Energy conservation equipment 0.000
8 Piping work for ponds 1.250
9 Cost of power connection 0.500
9 Cost of electrification 1.000
10 Erection and commissioning 1.000
11 Cost of machinery spares 0.200
12 Cost of office equipment 1.000
13 Deposits if any 0.000
14 Company formation expenses 0.100
15 Gestation period expenses 0.500
16 Sales tax registration expenses 0.100
17 Initial advertisement and publicity 5.000
18 Contingencies 0.500
19 Working capital margin money 0.600
20 Total 87.510
11. WORKING CAPITAL REQUIREMENTS PER MONTH
A.SALARIES AND WAGES
Sr. Description No of persons Total salary /
month
(Rs. lakhs)
1 Production Manager 1 0.150
2 Production supervisor 2 0.200
3 Skilled workers 1 0.060
4 Unskilled workers 8 0.240
5 Packing workers 2 0.060
6 Administrative staff 1 0.100
7 Driver 1 0.060
8 Security 3 0.090
7 Total 19 0.960
12. B. RAW MATERIAL REQUIREMENT PER MONTH
Sr Description Qty (kgs) Rate / kg (Rs) Value (Rs.
lakhs)
1 Sodium bicarbonate 2167 16.00 0.346
2 N.P.K. Fertilizer 500 16.00 0.080
3 Super Phosphate 83 20.00 0.016
4 Magnesium Sulphate 100 16.00 0.016
5 Effluent treatment chemicals 200 20.00 0.040
6 Water for ponds 0.030
7 Total raw material 3050 0.528
13. C.PACKAGING MATERIAL REQUIREMENT PER
MONTH
Sl Description Qty Rate / unit Rs) Value (Rs.
lakhs)
1 Poly propylene pouches 17000 nos 0.50 0.085
2 Cartons and straps 170 nos 20 0.034
3 Total 0.119
Total raw + packaging material = Rs. 0.647 lakhs
14. D . UTILITIES PER MONTH
Sr Description Rs. lakhs
1 Power 5000 kwh @ Rs. 5.50 per unit 0.275
2 Water 0.050
3 Boiler fuel 0.000
4 Total utilities 0.325
15. E. CONTINGENT EXPENSES PER MONTH
Sr Description Rs. lakhs
1 Rent for processing shed 0.000
2 Postage and stationery 0.010
3 Telephones, fax etc. 0.050
4 Consumable stores 0.020
5 Repairs and maintenance 0.087
6 Local transports, loading and unloading 0.100
7 Advertisement and publicity @ 5% of sales 0.250
8 Insurance 0.005
9 Sales expenses @ 1% of sales 0.050
10 Miscellaneous expenses @ 1% of sales 0.050
11 Trade incentives @ 2% of sales 0.100
12 Taxes @ 4% 0.200
13 Total contingent expenses 0.922
16. F. TOTAL WORKING CAPITAL REQUIREMENT
PER MONTH
Sl Description Rs. lakhs
1 Salaries and wages 0.960
2 Raw material and packaging material 0.647
3 Utilities 0.325
4 Contingent expenses 0.922
5 Total 2.854
17. FINANCIAL ANALYSIS
Sl Description Rs. lakhs
1 Total recurring cost per year 34.248
2 Depreciation on land and building 5.600
3 Depreciation on machinery and vehicle 1.350
4 Depreciation on furnaces 0.000
5 Depreciation on moulds and fixtures 0.020
6 Depreciation on office equipment 1.000
7 Interest on long term loan @ 12% 7.000
8 Interest on short term borrowings@ 12% 0.240
9 Total cost of production 49.458
18. TURNOVER PER YEAR
Sl Item Qty Rate/unit (Rs) Total Rs. lakhs
1 Spirulina 10000 kgs 600 60.00
VIABILITYANALYSIS
Sr. Description Value
1 Net profit before income tax (Rs. lakhs) 10.542
2 Net profit ratio 17.6%
3 Internal rate of return 14.8%
4 Break even percentage 62%
19. HEALTH BENEFITS
• Nutrient source: Protein, Vit.B1,2,3, Copper and Iron.
• Antioxidant and anti inflammatory properties.
• Anti cancer properties – oral cancer.
• Helps in BP reduction.
• Effective against anaemia.
• Strengthen the immune system.
• Improves the digestion.
• Anti- aging properties.
20. TARGET MARKET
• Female
• Health conscious
• Healthy lifestyle
• Old age people with health complaints
21. GOVT.SCHEMES
• CGT-SME- 75% of the loan amount to the bank is guaranteed by the
Trust Fund.
• FPTUSFS- The aim is up gradation of processing capabilities of
MSMEs in food processing activities.
• Subsidy from NABARD depend on loan amount.
• 50% subsidy by Agriculture dept.
22. SUCCESS STORIES
• Shri R. Balamurugan, Chidambaram, Cuddalore District, Tamil
Nadu-
Agri engineer
PAMBAN SPIRULINA FARM
Own capital investment RS.1.25 lakhs
First net profit RS.50,000/-
Loan proposal of 10 lakh to UBI – 36% subsidy from NABARD
Annual turnover Rs.5 lakh
FSSAI approval for product.
23. • Mr. Mahesh RV, Tumkur, Bangalore.
Under guidance of CFTRI Mysore.
Per month on an average 300 kg spirulina is grown
Processing into granules, tablets, capsules.
CSR activities