NOODLES
INTRODUCTION
Fresh noodle is an extrusion product made of tapioca flour and maida. They are long thread-like of thickness. This is a eatable food item under instant food products and very popular now-a-days as fast food. It is one of the most conventional foods available in the market.
Material Potential
Noodles and chowmein are ready-to-eat food item and is very popular in developed countries and now it has created good market potential in our country also and is becoming a popular item. The factors governing its demand are:
- Increasing population of the country.
- Rapid industrialization in the country.
- Increase in the purchasing capacity/power of the people.
- Durability of the product.
- Change in people eating habits especially the younger generation.
- It is ready-to-eat product.
- Convenience of preparation.
Keeping in view the above factors, the demand of this product is likely to increase manifold in the coming years.
Present Manufacturers
M/s. A.G. International
2222, Sector 21-C,
Chandigarh- 160021
Tel.: +91-172-2720181
Mobile No. 9814212222
Fax: +91-172-2728205
E-mail: agfoods@hotmail.com.
M/s. Bombino Agro Industries Ltd.
4E, Surya Towers, 4th floor,
E Block Sardar Patel Road,
Secunderabad-500003.
Tel.: +91-40-27816611
Fax: +91-40-27816615
E-mail: ho.marketing@bambino.com
Web: http://www.bombino.com.
M/s. Magic foods Limited
Magic House,
D-3/1, R.P. Bagh.
Delhi-110007
Tel.: 27111629, 27129583
Fax: 91-11-27249497
M/s. Moonrich Foods Pvt. Ltd.
RH IV/L-5, Sector-9,
C.B.D. Belapur,
Navi Mumbai-400614
Tel.: 27693895, 27602042
Fax: 27570633
M/s. Royal Marketing (Food Products Div)
29, West Road, West C.I.T. Nagar
Chennai- 600035 T.N.
Tel.: 24356023, 24355726, 24363558
E-mail: royalmarketing@kmronline.com.
Basis and Presumptions
- This project is based on the assumptions that productivity is done on single shift basis. The shift consists of 8 hours per day and number of working days per month is 25 calculating out 300 days in a year.
- It is supposed that the production unit is utilizing the latest automatic machines indigenously available.
- The machinery cost, cost of equipments & raw materials are all approximate to those prevailing at the time of preparation of this project.
- The machinery & equipment used are standard ones.
- Preoperative cost includes the cost of installation & electrification, which is considered to be equal to 10% of cost of machinery & equipment.
- Salary and wages for the workers are based on the prevailing rates and would certainly increase in future due the increasing prices of goods & services.
- Salary is calculated considering the factors of bonus & increment, so additional 20% p.a. is added to get total salary & wages.
- Raw material availability is the basic element for any industry, so it is advisable to set up the production unit nearest to the place where the raw material is in abundance and also considering the other cost factors such as rent, utilities etc.
- It is assumed that total capital investment consists of
- Total Fixed Cost
- Working capital of 3 months
- Interest on the capital investment has been taken @ 12% per annum
- Depreciations has been considered:
- on machineries @ 25%
- on office equipment @ 10%
- on building @ 12%
- The Break Even Point percentage indicated is of full capacity utilization.
- The project preparation cost, whenever required could be considered under pre operative expenses.
Implementation Schedule
- The entrepreneur whether established or a new one arriving at a decision of venturing in this project, mainly consider the factors such as market potential, demand and suuply gap and availablity of resources. Then he would require a project report. It takes around a month's period.
- Once the selection of the product is done the entrepreneur has to essentially get a provisional registration certificate fom DIC, so that he can apply for the allotment of land, power etc. The process takes around 2 months.
- Now, entrepreneur is considered eligible for loans from financial institutions, which require a detailed copy of the project report. On the basis of this report the financial institutions may at least take around 3-4 months time for sanctioning and disbursing the loan.
- The building construction would take atleast 3-4 months.
- Simultaneously after 2 months of applying for loans, the order for plant machinery may be finalized after getting one/two installments of loan. The process of procurement of plant machinery would take around 2 months.
- Once the plant machinery and other equipments are procured, the installation, electrification and commissioning process of the production plant takes at least 1-1½ months.
- The order for the raw materials is also placed along with the process of installation of plant machinery and electrification. The procurement of raw material would take 1 month.
- The time period for the process of recruitment is considered to be 2 months.
- The production may be commenced after a trial run of the installed plant & machinery. The time period for trial run varies from process to process. For this unit the time of trial production is 15 days.
- After the trial production period is over the commercial production starts.
Technical Aspects
Process of Manufacture
Noodles is the term being used to designate products made from blend of flours. The major component of noodles is tapioca flour and maida. A noodle is manufactured in different sizes, hollow as well as solid, for different cooking methods. Some are made for cooking and others are for frying. The noodles specified in this Profile are for frying.
Typical Blending for 16 Kg. of Product
| Maida |
: |
8 Kgs. |
| Starch |
: |
7 Kgs. |
| Sodium bicarbonate |
: |
850 gms. |
| Salt |
: |
150 gms. |
| Edible colour |
: |
Q.S. |
Process in Detail
Dry Mixing
The average moisture content of dry mixes is 10-11%. The three main ingredients of noodles maida, starch and soda bicarbonate are blended in a vertical mixer alongwith the edible colours.
Dough Formation
Dough is formed from the above blend only by using boiled water, when a part of the starch is gelatinized. The ingredients are supplied in dough mixer for about 12 to 15 minutes mixing.
Extrusion
Now, the kneaded dough is transferred to noodles making machine where extruded material of desired shape and length is obtained by using an appropriate type of die and suitably adjusting the distance between the dye surface and cutting blade. The moisture content of the product at this stage is about 33%.
Pre-drying
At this stage the cut noodles goods from the cutting machine fall on wooden trays. The product undergoes surface drying and becomes sufficiently hard enough to be handled without sticking or being crushed. The moisture content of the pre-dried product is about 29.5%.
Drying
The pre-dried product is finally semi-dried. The moisture content of the product will be 17%. Drying is done by exposure to indirect sunrays or placing in shade. The noodles dried as above do not have a satisfactory cooking quality and undergo a heavy loss on cooking. This can be reduced considerably by giving heat treatment to the product. This is optioned as this gives a brown colour to the product which may not be appealing to some of the customers.
Recent development in the manufacture of noodles is that the product is exposed to steam. The steamed product has three advantages: (1) longer shelf-life (2) harder grain, and (3) better eating quality than unsteamed product. Steaming is done by exposing the product in thin layer to steam for about 15 minutes. The steamed and subsequently dried product has a moisture content of about 10%. The steaming is done before the product is semi-dried.
Quality Control and Standards
The product must meet Processed Foods Association (PFA) specifications. However, BIS specification for Noodles is IS: 1485: 1976.
For further detail, please contact....
M/S. BUREAU OF INDIAN STANDARDS,
9, MANAK BHAVAN,
B.S. ZAFAR MARG,
NEW DELHI - 110 002.
Tel.: (091) (11) 23230131, 23233375, 23239402
Fax: 011-23234062, 23239399
E-mail: bis@vsnl.com
Website: http://www.bis.org.in
Production Capacity
| |
Quality per annum |
Value per annum(In Rs.) |
| Fresh Noodles |
187.5 MT |
45,00,000 |
Pollution Measures
The manufacturing process of this product does not cause any type of pollution i.e. air pollution, water pollution and noise pollution. However it is essential to obtain a no-objection certificate (NOC) from concerned state Pollution Control Board.
This general process of obtaining NOC certifies the manufacturing unit as a non-polluting unit.
Energy Conservation
Proper insulation reduces the heat loss during drying and steaming processes.
PLANT ECONOMICS
Basis
| Number of Working Days |
= |
25 Days/Month 300 Days/Annum |
| Number of Shift |
= |
1 Per Day |
| One Shift |
= |
8 Hours |
| Employment Generation |
= |
12 People |
Production capacity
| a) |
Quantity |
= |
187500 Kgs |
| b) |
Value |
= |
Rs 45 Lakhs. |
A. FIXED COST
(1) Land & Building
| Sl.No. |
Particulars |
Sq.Mtr. |
Rate(Rs.) |
Value(Rs.) |
| a. |
Land |
500 |
1000 |
5,00,000 |
| b. |
Cost of Land development, fencing, approach road, inside roads, land scaping, drainage etc. |
500 |
200 |
1,00,000 |
| c. |
Total built-up area |
225 |
3000 |
6,75,000 |
| |
i) Administrative Building |
|
|
|
| |
ii) Factory Shed |
|
|
|
| |
iii) Stores, Staff Canteen etc. |
|
|
|
| |
Total |
|
|
12,75,000 |
(2) Machinery and Equipments
| Sl.No. | Particulars |
| 1. |
Vertical type powder mixer with motor complete |
| 2. |
Dough mixer blade type |
| 3. |
Noodles making power operated machine with different size die-heads |
| 4. |
Wooden trays |
| 5. |
Plastic Buckets |
| 6. |
Aluminium/Galvanised iron water tape pipe line fittings |
| 7. |
Water boiler-fuel heated |
| Approx. Total |
4,00,000 |
(3) Preoperative (Erection & Installation Charges) 40,000
(4) Office furniture & equipments 25,000
Total FIxed Cost = (1+2+3+4) 17,40,000
B. WORKING COST
(1) Salary & Wages (per month)
| Sl.No. | Designation | Number | Salary(Rs.) | Total(Rs.) |
| 1. |
Manager |
1 |
8,000 |
8,000 |
| 2. |
Supervisor |
1 |
4,500 |
4,500 |
| 3. |
Chemist |
1 |
4,000 |
4,000 |
| 4. |
Clerk |
1 |
3,000 |
3,000 |
| 5. |
Peon/Watchman |
1 |
2,000 |
2,000 |
| 6. |
Skilled Workers |
2 |
2,500 |
5,000 |
| 7. |
Unskilled |
4 |
2,000 |
8,000 |
| |
Total |
|
|
34,500 |
| |
Plus perks @ 10% per annum |
|
|
3,450 |
| |
TotalCost |
|
|
37,950 |
(2) Raw material (per month)
| Sl.No. |
Particulars |
|
| a. |
Maida |
|
| b. |
Starch |
|
| c. |
Chemicals, Salt etc. |
|
| d. |
Packaging Material |
|
| |
Approx. Total |
Rs. 1,80,000 |
(3) Utilities & Overheads (Per Month)
- Utilities 10,000
- Power
- Water
- Fuel
- Other Misc. Expenses
- Contingencies 25,000
- Maintenance / Repair
- Postage and Stationery
- Sales Expenses
- Stores
- Telephone
- Advertisement and Marketing
- Travelling and Conveyance
- Insurance
- Miscellaneous
Approx. Total Cost 35,000
(4) Working Capital (per month)
| Sl.No. | Particulars | Amount(Rs.) |
| a. |
Salary / Wages |
37,950 |
| b. |
Raw Material |
1,80,000 |
| c. |
Utilities & Overheads |
35,000 |
| |
Total |
2,52,950 |
(5) Total Working Capital = Working Capital (per month) * 3
= 7,58,850
C. TOTAL CAPITAL INVESTMENT
| a) |
Total Fixed Cost |
17,40,000 |
| b) |
Total Working Capital |
7,58,850 |
| |
Total |
24,98,850 |
ECONOMIC ANALYSIS
(1) Production Cost (per annum)
| Sl.No. | Particulars | Amount(Rs.) |
| a. |
Total Recurring Expenditure Working Capital (per month) * 12 |
30,35,400 |
| b. |
Depreciation on Machineries @ 25% |
1,00,000 |
| c. |
Depreciation on office Equipment @ 10% |
2,500 |
| d. |
Interest on Capital @ 12% |
2,99,862 |
| e. |
Depreciation on Building @12% |
93,000 |
| |
Total |
35,30,762 |
(2) Sales / Turnover (per annum)
| Sl.No. | Particulars | Rate | Amount (Rs.) |
| a) |
Fresh noodles in 250 g packet 7.50 lakhs packets |
6 |
45,00,000 |
| |
Total Cost |
|
Rs. 45,00,000 |
(3)Profit (per annum) = Sales - Production Cost
= (2) - (1) = Rs 9,69,238
(4)Profit Sales Ratio = Profit / Sales * 100
= 21.54%
(5)Rate of Return = Profit / Total Capital Investment * 100
= 38.79%
(6) Break Even Point
(a) Fixed Cost of Plant
i. Interests 2,99,862
ii. Depreciation 1,95,500
iii. 40% of salaries & Overheads 3,50,160
Total Rs. 8,45,522
(b) Profit Rs. 9,69,238
As, B.E.P. = FIxed Cost of Plant * 100 / Fixed Cost of Plant + Profit
= 46.6%
