Project Report on Spice Grinding, Packaging, and Besan Udyog under ₹25 Lakhs
Introduction-Project Report on Spice Grinding
Project Report on Spice Grinding, Spices and gram flour (besan) are integral parts of Indian cuisine, both domestically and commercially. With a growing demand for organic, hygienically processed spices and besan, setting up a spice grinding, packaging, and besan production unit is a promising small-scale industry.
This venture focuses on grinding spices like turmeric, coriander, cumin, etc., and producing besan from chickpeas (chana dal). The products can be packaged and sold directly to retailers or through wholesalers. Given the growing awareness around hygiene and quality, customers now seek packaged products that ensure freshness and purity.
Read here – Project Report on Jams and Jellies: Fruit Preserves
The project requires an initial investment of ₹25 lakhs, which covers the cost of machinery, raw materials, labor, and packaging. Thus, it is ideal for small-scale entrepreneurs.
Market Prospects
India is one of the largest consumers of spices and Besan globally, and with a growing middle class, the market for these commodities continues to expand. According to market data, the Indian spice market is projected to grow at a CAGR of 6.5% between 2021 and 2027.
Must read here – Pickles (Traditional and Gourmet Flavors): A Detailed Business Plan
Similarly, the demand for besan is consistently high due to its use in various culinary dishes, snacks, and even desserts. Consumers increasingly prefer branded and packaged products for convenience and trust in hygiene, creating a thriving market for small-scale producers.
Export opportunities are also promising, especially for high-quality, well-packaged spices, making this venture profitable domestically and internationally.
Demand and Supply: Year-Wise Data
The demand for spices and Besan is on an upward trajectory due to increased awareness of Indian cuisine globally. The domestic demand is supported by an ever-growing population and changing food preferences. Here is a basic overview of the year-wise demand data:
- 2018: Global demand for spices reached USD 12 billion, with India’s share at about USD 4.2 billion. Besan demand remained stable at around 4 million tonnes.
- 2019: Spices demand increased by 10%, driven by urbanization and the rise in processed food industries.
- 2020: The COVID-19 pandemic saw a 15% spike in demand for packaged spices and flour due to increased home cooking.
- 2021: Spice and besan demand stabilized post-pandemic but remained strong, with a CAGR of 5-6% in the domestic market.
- 2022: The demand for processed and packaged spices and Besan reached new highs with a growing emphasis on food safety and quality.
While supply has also increased with more players entering the market, there is still a supply gap, especially in rural areas and the export market, where quality and hygiene standards are crucial.
Basis and Presumption-Project Report on Spice Grinding
- The unit will operate 300 days a year, working for 8 hours a day.
- Full production capacity is expected to be utilized from the third year onwards.
- The raw materials, including various spices and chickpeas (for besan), are locally available at reasonable prices.
- No significant change in tax rates or electricity tariffs is presumed.
- The business will primarily cater to domestic markets, with potential export ventures after the initial setup phase.
Project Cost-Project Report on Spice Grinding
The total project cost is estimated at ₹25 lakhs, including:
- Land and Building: ₹2-3 lakhs (if renting; location-dependent).
- Machinery and Equipment: ₹12-15 lakhs.
- Raw Materials: ₹3-4 lakhs (initial stock).
- Labor and Salaries: ₹2 lakhs monthly.
- Packaging Material and Other Consumables: ₹2-3 lakhs.
- Working Capital: ₹1.5-2 lakhs.
This budget is flexible, depending on the scale of production and operational capacity.
Read this post – Project Report On Essential Oils
Plant and Machinery
For a spice grinding and besan production unit, the following machinery is essential:
- Spice Grinding Machine: Capable of grinding various spices like turmeric, coriander, cumin, etc.
- Pulverizer: For grinding chickpeas (chana dal) into fine besan.
- Mixing Machine: For ensuring uniform blending of different spices when needed.
- Packaging Machine: For both spices and besan (automatic or semi-automatic).
- Sieving Machine: To ensure a fine, uniform product.
- Weighing Scale: For accurate packaging.
- Sealing Machine: For secure packaging of the final product.
Want to know your baby’s lucky name, visit here- https://sicopr.com/
Raw Materials-Project Report on Spice Grinding
- Spices: Turmeric, cumin, coriander, cloves, black pepper, etc.
- Chickpeas (Chana Dal): The primary ingredient for besan.
- Packaging Materials: Food-grade pouches, cartons, labels, etc.
- Additional Additives: If producing blended or customized spice mixes.
Production Process-Project Report on Spice Grinding
- Procurement of Raw Materials: High-quality spices and chickpeas are sourced from local farms or suppliers.
- Cleaning: The raw materials are cleaned to remove impurities.
- Grinding:
- Spices are ground using specialized spice grinding machines.
- Chickpeas are ground into fine besan using a pulverizer.
- Sieving: Ground spices and besan are sieved to ensure uniformity in texture.
- Blending: In the case of customized spice mixes, the individual spices are blended in a mixer.
- Packaging: The final products are weighed, sealed, and labeled using automated or semi-automated packaging machines.
- Quality Control: Every batch is checked for quality and hygiene before dispatch.
Electricity Consumption
The estimated electricity consumption for a small-scale spice grinding and besan unit is as follows:
- Grinding Machines: 20 kWh/day
- Pulverizer: 15 kWh/day
- Mixers: 5 kWh/day
- Packaging Machinery: 10 kWh/day
- Miscellaneous (lighting, air conditioning, etc.): 10 kWh/day
Total monthly consumption: 1500-2000 kWh, costing approximately ₹15,000 to ₹20,000 per month.
Required Workers with Designation
- Production Manager: Oversees the entire production process.
- Machine Operators: Operate grinding, pulverizing, and packaging machines.
- Quality Control Supervisor: Ensures product quality.
- Packaging Workers: Manage the packaging process.
- Warehouse/Inventory Manager: Manages stock and raw material procurement.
- Sales and Marketing Executives: Handle distribution and market development.
The workforce is expected to be around 10-15 workers.
Production Cost-Project Report on Spice Grinding
The approximate production cost per unit (1 kg of product) is broken down as follows:
- Raw Material (spices or chickpeas): ₹40-60/kg
- Labor Cost: ₹10-15/kg
- Packaging: ₹5-10/kg
- Electricity and Utilities: ₹2-3/kg
- Miscellaneous: ₹3-5/kg
Total production cost per kg: ₹60-85.
Profitability Calculation
- Selling Price (per kg): ₹150-200 (spices), ₹100-120 (besan)
- Production Cost: ₹85 per kg (spices), ₹60 per kg (besan)
- Profit Margin: ₹65-115 per kg for spices, ₹40-60 per kg for besan.
For a production capacity of 1000 kg per month, the potential gross profit is around ₹1.5-2 lakhs per month. After deducting operational costs (salaries, utilities, etc.), the expected net profit is approximately ₹70,000 to ₹1 lakh per month.
Conclusion-Project Report on Spice Grinding
Starting a spice grinding, packaging, and besan production unit with an investment of ₹25 lakhs is a viable and profitable small-scale business venture. With a growing demand for high-quality, packaged spices and besan, entrepreneurs can quickly establish a foothold in both domestic and international markets.
By focusing on quality, efficient production, and effective marketing, this business can yield significant returns within a few years.
FAQ-Project Report on Spice Grinding
- What is the minimum investment required for this business?
The business can be started with an investment of around ₹25 lakhs, including plant setup, machinery, and raw materials. - Is there a high demand for packaged spices and besan?
Yes, both products have consistent demand in the domestic market and significant export potential. - What is the profit margin for this business?
The profit margin for spices can range from ₹65-115 per kg, while for besan, it is around ₹40-60 per kg. - Can this business be run from a small location?
Yes, a small to medium-sized facility can handle production efficiently, but the location should be close to raw material sources. - Is the spice grinding and besan business seasonal?
No, these products have year-round demand, making it a stable venture.
