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Salt Industry: Project Opportunities in Gujarat

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Saturday, March 3, 2012

PROFILE:

India is the third largest Salt producing Country in the World after China and USA with Global annual production being about 230 million tonnes.  The growth and achievement of Salt Industry over the last 60 years has been spectacular.  When India attained Independence in 1947, salt was being imported from the United Kingdom & Adens to meet its domestic requirement.  But today it has not only achieved self-sufficiency in production of salt to meet its domestic requirement but also in a position of exporting surplus salt to foreign countries.  The production of salt during 1947 was 1.9 million tonnes which has increased tenfold to record 20 million tonnes during 2005. The main sources of salt in India are sea brine, lake brine, sub-soil brine and rock salt deposits. Sea water is an inexhaustible source of salt.  Salt production along the coast is limited by weather and soil conditions.

RESOURCES:

Gujarat is blessed with the longest coastline of 1600 km. in India, offering important resources such as salt and marine products for industry. Gujarat is the largest producers of salt in India and ranking 2nd highest export in the world. Gujarat contributes 76 percent to the total production, followed by Tamil Nadu (12 %) and Rajasthan (8%). It also became the highest tax charging state for salt production amongst the six other salt producing states. Apart from using salt for edible purposes, it is substantially used for production of inorganic chemicals.

 

 

 

GOVERNMENT POLICIES:

Salt is a Central subject in the Constitution of India and appears as item No.58 of the Union List of the 7th Schedule, which reads:

a)   Manufacture, Supply and Distribution of Salt by Union Agencies; and

b)   Regulation and control of manufacture, supply and distribution of salt by other agencies.

Central Government is responsible for controlling all aspects of the Salt Industry. Salt Commissioner’s Organisation plays a facilitating role in overall growth and development of Salt Industry in the country. The thrust of the Salt Commissioner’s Organisation currently is on Technological Development and Quality Improvement, Salt Iodisation Program for combating Iodine Deficiency Disorders, Infrastructure Development promoting Salt Industry, Labour Welfare Schemes for Salt Workers particularly housing under Namak Mazdoor Awas Yojna and export of Salt.

 

 

OPPORTUNITIES FOR ENTREPRENEURS:

Gujarat has tremendous resource for salt production and following are some of the identified projects related to salt processing:

·      Iodized Salt (Free Flowing)

http://www.niir.org/profiles/profiles/z,,6a,0,a/index.html

Niir Project Consultancy Services (NPCS) provides you detailed project reports (DPR) on the above fields. Each detailed project reports cover all the aspects of business, from analysing the market, confirming availability of various necessities such as plant & machinery, raw materials to forecasting the financial requirements. The scope of the report includes assessing market potential, negotiating with collaborators, investment decision making, corporate diversification planning etc. in a very planned manner by formulating detailed manufacturing techniques and forecasting financial aspects by estimating the cost of raw material, formulating the cash flow statement, projecting the balance sheet etc.

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Source: NPCS Team


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Introduction
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Market Study and Assessment
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Annexure 1:: Cost of Project and Means of Finance
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Annexure 8 to 11:: Sensitivity Analysis-Price/Volume
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Annexure 15 :: Total Raw Material Cost
Annexure 16 :: Raw Material Cost per unit
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Annexure 18 :: Consumables, Store etc.,
Annexure 19 :: Packing Material Cost
Annexure 20 :: Packing Material Cost Per Unit
Annexure 21 :: Employees Expenses
Annexure 22 :: Fuel Expenses
Annexure 23 :: Power/Electricity Expenses
Annexure 24 :: Royalty & Other Charges
Annexure 25 :: Repairs & Maintenance Exp.
Annexure 26 :: Other Mfg. Expenses
Annexure 27 :: Administration Expenses
Annexure 28 :: Selling Expenses
Annexure 29 :: Depreciation Charges – as per Books (Total)
Annexure 30 :: Depreciation Charges – as per Books (P & M)
Annexure 31 :: Depreciation Charges - As per IT Act WDV (Total)
Annexure 32 :: Depreciation Charges - As per IT Act WDV (P & M)
Annexure 33 :: Interest and Repayment - Term Loans
Annexure 34 :: Tax on Profits
Annexure 35 ::Projected Pay-Back Period And IRR