Project Report On

Management of Cashew Shell Nut Liquid processing Unit

Submitted by Harshal Pandurang Bangal Roll No.245

Guided by Prof. Kalidas kharat

Submitted to

University Of Mumbai Garware Institute of Career Education & Development Mumbai 400098
(2011-2013)

ACKNOWLEDGEMENT

I wish to express my deep sense of gratitude to my Internal Guide, Mr.Kalidas Kharat Prof. GICED, Mumbai University for his able guidance and useful suggestions, which helped me in completing the project work, in time.

Needless to mention that Mr. Ashok Govande course Co-ordinator, GICED, Mumbai university who had been a source of inspiration and for his timely guidance in the conduct of our project work.

DECLARATION

I the undersigned solemnly declare that the report of the project work entitled Management of Cashew Shell Nut Liquid processing Unit is based on my own work carried out during the course of my study under the supervision of Mr. Kalidas Kharat. I assert that the statements made and conclusions drawn are an outcome of the project work. I further declare that to the best of my knowledge and belief that the project report does not contain any part of any work which has been submitted for the award of any other degree/diploma/certificate in this University or any other University.

_______________________ Harshal Pandurang Bangal Roll number-245

Table of Content
Sr. No. 1 2 Particulars Executive Summery Introduction
1.1 Present scenario

Page No.

1 5

1.2 Cashew 1.3 Cashew Nut shell Oil 1.4 Market Potential 3 4 Objective Project Cost And Profitability 3.1 Process of Manufacture 3.2 Quality Control and Standards 3.3 Flow chart of C.N.S.L 3.3 Cost analysis 6 7 Suggestion and recommendation Reference

7 8

24 25

EXECUTIVE SUMMERY
Food processing sector is one of the largest sectors in India in terms of production, growth, consumption, and export. The demand for processed foods is mostly lies in the urban market due to the lifestyle and purchasing power of the urban population. Cashew Nut Shell Liquid (CNSL) is a ,versatile by-product of the cashew ,industry. C.N.S.L. has innumerable applications ,in polymer based industries such as ,friction linings, paints and varnishes, ,laminating resins, rubber compounding ,resins, cashew cements, polyurethane ,based polymers, surfactants, epoxy ,resins, foundry chemicals

and ,intermediates for chemical industry. The total production of raw cashew nut in the country could be as much as 2 lakh tonnes and at 10% recovery by weight, the production potential for C.N.S.L is as much as 20,000 tonnes. There is a good scope for the export of C.N.S.L to other countries which at present is on the decline. The export opportunity for CNSL would substantially improve, if Indian units would produce various grades of product for meeting the specific requirement of application sector.

INTRODUCTION
Present scenario of Indian Food Processing Industry
Indian Food Processing Industry, known as the fruit and vegetable basket of the world, India ranks second in fruits and vegetables production in the world, after China.During 2010-11, India exported fruits and vegetables. Food processing sector is one of the largest sectors in India in terms of production, growth, consumption, and export. The turnover of the total food market is approximately Rs. 250,000 crores out of which value-added food products comprise Rs.80,000 crores India annually produces 205 million tones of fruits and vegetables and is the second largest country in farm production in the world. Only 2.2 % of this are processed. In contrast, countries, like USA (65%), China(23%)and Philippines (78%) are far ahead of India in reducing the wastage and enhancing the value addition and shelf life of the farm products. The consumption of processed fruits and vegetables are low in India compared to the primary foods because they are available fresh in the market to the consumer. The demand for processed foods is mostly lies in the urban market due to the lifestyle and purchasing power of the urban population. Thus, there is a large demand for processed food in the export market and India can capture this market by restructuring and strengthening its infrastructure.

Following are The Indian Food industry Processed Product:

Marine Products Bakery and Confectionery Ready To Eat Food Drinks and Beverages Food grain Milling Edible Oil Fruits & Vegetable Dairy Poultry Meat and Meat Products

Why to invest in Food Processing Sector?

1. Vast source of raw material

2. Conventional farming to commercial faming

3. Market in the form of large urban middle class

4. Low Production cost

5. Government Assistance

6. Foreign Direct Investment

7. Food Parks

8 .Conducive food processing policy environment

9. Infrastructual Development

Vision of Indian Food Processing Industry:

The vision 2015 of the Government of India for the food-processing sector aims at: Enhancing and stabilizing the income level of the farmers Providing choice to consumers in terms of wide variety and taste including traditional ethnic food Providing greater assurance in terms of safety and quality of food to consumers Promoting a dynamic food processing industry Enhancing the competitiveness of food processing industry in both domestic as well as international market Making the food processing sector attractive for both domestic and foreign investors Achieving integration of the food processing infrastructure from farm to market Having a transparent and industry friendly regulatory regime Putting in place a transparent system of standards based on science.

CASHEWS:
Cashews are cultivated mainly in Kerala, Maharashtra and Goa. Cashew processing is a well established activity in Kerala and Goa but it is yet to pick up in Maharashtra. Konkan region of Maharashtra is famous for cashews and alphanso mangoes. It is also attracting number of tourists due to its vast coast line and scenic beauty. Konkan railway has made this region easily accessible. Most of the cashew processing is undertaken manually and reportedly there are only two mechanised factories. There are some colleges in Ratnagiri imparting vocational training in cashew processing. Thus, cashew processing has good potential in the region.

Cashew Nut Shell Liquid:

Cashew Nut Shell Liquid (CNSL) is a ,versatile by-product of the cashew ,industry. The nut has a shell of about 1/ ,8 inch thickness inside which is a soft ,honey comb structure containing a dark , reddish brown viscous liquid. It is called ,cashew nut shell liquid, which is the, pericap fluid of the cashew nut. It is often ,considered as the better and cheaper ,material for unsaturated phenols. C.N.S.L. has innumerable applications ,in polymer based industries such as ,friction linings, paints and varnishes, ,laminating resins, rubber compounding ,resins, cashew cements, polyurethane ,based polymers, surfactants, epoxy ,resins, foundry chemicals and ,intermediates for chemical industry. It, offers much scope and varied ,opportunities for the development of ,other tailor - made polymers.

Market Potential
The use of this oil by indigenous industry is at present limited, however an upward trend has been noticed. U.K. USA and Japan were the large scale buyers of this commodity until recently but due to changes in technology, UK and USA have stopped buying this product from India. At present, Japan and Republic of Korea buy a sizeable quantity of this commodity from India. The production potential for the product is very high. The total production of raw cashew nut in the country could be as much as 2 lakh tonnes and at 10% recovery by weight, the production potential for C.N.S.L is as much as 20,000 tonnes. There is a good scope for the export of C.N.S.L to other countries which at present is on the decline.

Table: export of C.N.S.L from India during the last 7 years is as under Year 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-2001 2001-2002 Qty. (MT) 760 1735 4446 1912 754 2246 1814 Total (Rs. in Crores) 1.46 2.77 7.17 4.21 1.84 3.89 4.91

In view of the sustaining demand for C.N.S.L from the indigenous as well as outside countries, we may encourage more SSI units in this line of activity.

OBJECTIVE
Establishment of cashew nut shell liquid processing unit in Maharashtra.

Calculate the cost and profitability of cashew nut shell liquid manufacturing unit.

PROJECT COST AND PROFITABILITY

Basis and Presumptions
1. The economic viability of the scheme depends upon the location of the unit. It is preferable to set up units in an area where there is concentration of raw cashew nut processing industry. 2. The yield of oil is calculated at about 10%. 3. The unit proposes to work for 300 days on single shift basis.

Implementation Schedule
Oil expeller and filter press are the major machines involved in the project. These machines are available from local suppliers; as such the project can be implemented within 8 to 12 months time.

Process of Manufacture
Cashew nut is processed by two methods i.e. (a) Roasting process, (b) Oil extraction process.

Cashew Nut Processing Roasting Process Oil Extraction process

Some manufacturers use the first method while some others prefer the second method from which the oil is obtained as a by-product. Raw Cashew nut shell contains over 20% CNSL. In the oil bath process about 10% of oil is recovered as a by-product. By using expellers for extraction, it is possible to extract a further quantity of about 10% more from the shells. Thus from 1 tonne of shells using oil bath process, upto 100 Kg of good quality of CNSL could be extracted by using oil expellers. It is advisable that a small unit of the size given below for extraction and recovery of CNSL is set up adjacent to each good cashew processing unit in view of the economic importance and ready foreign as well as internal demand of the product.

Flow chart of C.N.S.L

cashew Nut Shell Oil Bath Recover By Product

Expeller

Extract cashew Nut Shell Liquid

Quality Control and Standards

(i) The revised specifications of the Indian Standards Institution, New Delhi, for untreated cashew nut shell liquid (IS 840:1964) is reproduced below Table: Indian Standards Institution, New Delhi, for untreated cashew nut shell liquid (IS 840:1964) Specific gravity 30 degree C Viscosity at 30 degree C, in centipoises Moisture, % by weight Matter insoluble in toluene, % by weight Loss in weight on heating, % by weight Ash, % by weight Iodine value a) Wijs method b) Catalytic method Polymerization a) Time in minutes b) Viscosity at 30 degree C, in centipoises c) Viscosity after acid washing at 30C, in centipoises 4 30 200 250 375 0.950 to 0.97 550 1.0 1.0 2.0 1.0

Colour shall be not deeper than dark brown when viewed by transmitted light.

(ii) Specification for treated Cashew Nut Shell Liquid

The cashew nut shell liquid as extracted has a strong vesicant dramatic action. Before this liquid is utilised for preparation of resins, it requires treatment to get rid of metallic impurities as well as traces of sulphur compounds. The liquid thus treated is known as treated Cashew Nut Shell Liquid.

Table: The specification of treated cashew liquid Specific gravity at 25 degree C Viscosity at 25 degree C (Max) Iodine Value (Min) Ash (Max) Moisture (Max) Acid V 0.955-0.975 800cps. 240.00 1% 0.5% 14

(iii) Specification for Cold pressed Cashew Nut Shell Liquid

Cashew Nut Shell Liquid is also produced by the Cold Pressed method in solvent extraction plant. The specifications of this liquid are as follows: Table: The specifications of this liquid by cold presses method Specific gravity at 26 degree C Refractive index at 41-50 degree C Saponification number Iodine number Acid number 0.9668-1.0131 1.5158 106-119 170-296 94-107

Cost analysis A. Fixed Capital

(i) Land and Building

Sr. No.

Description Building on rent, initial development charges (150 sq mtr building) @ Rs 3,000 per month Total

Amount (Rs.)

1.

15,000 15,000

(ii) Machine Description

Sr. No. 1. 2. 3.

Description 2 HP Motor for Filter Press Miscellaneous Equipments Filter press-22 plates 22'22' with plunger pump 4. Lab. glass equipment balance, etc M.S. 2500 lt. cap Oil expeller on 4.5MT steel cap hrs

Qty. Rate(Rs.) Total (Rs.) 1 x 1 5,000 x 50,000 5,000 25,000 50,000

4. 5.

x 3

x 10,000

20,000 30,000

mounted 6.

fabricated 1 200,000 200,000

channel fitted with oil tray. Thrust bearings single helical generator with 20 HP motor, starter and all other accessories

7. 8.

Installation and Electrification Office furniture iii. Pre-operative Expenses Total LS

33,000 20,000 20,000 4,03,000

Total fixed cost = 15000+4,03,000= 4,18,000 Rs.

B. Working Capital (per month)

(i) Raw Material Total Rs.) 10,000 6,000 2,000 18,000 (in

S.No. Description 1. 2. 3. Cashew shell 20 MT @ Rs. 500 per MT M.S. Barrels 20 nos @ Rs 300 each Miscellaneous stores Total

(ii) Salaries and Wages Sl. No. Designation 1. 2. 3. 4. 5. Accountant/Clerk Manager/Chemist Peon/Watchman Supervisor Workers No. Salary (In Rs.) 1 1 1 1 5 5,000 7,000 2,500 4,000 3,500 Total (ii) Utilities Sr. No 1. 2. Description Power Water Qty. LS LS Total (iv) Other Contingent Expenses S.No. Description 1. 2. 3. 4. 5. 6. 7. Total Advertisement and publicity Insurance and taxes Postage, stationery and telephone Repairs and maintenance Sales expenses Transport Rent Total (in Rs.) 1,200 500 1,500 1,500 2,000 2,000 5,000 13,700 Rate (In Rs.) X X Amount (In Rs.) 4,000 500 4,500 Total (In Rs.) 5,000 7,000 2,500 4,000 17,500 19,550

Working Capital (per month) Rs. 18,000 + 19,550 + 4,500 + 13,700 = Rs. 55,750 (v) Working Capital for 3 Months = Rs 55,750 3 = 1,67,250

C. Total Capital Investment

Particulars (In Rs.)

Fixed Capital

4,53,000

Working Capital for (3 Months)

1,67,250

Total

6,20,250

SUGGESTION AND RECOMMENDATION

India is, the large producer and processor of Cashew nut shell in the world and therefore ,has special advantages with regard to the CNSL industry. Indian CNSL industry is still operated mostly as small scale units, lacking in R&D thrust and application development efforts. The export opportunity for CNSL would substantially improve, if Indian units would produce various grades of product for meeting the specific requirement of application sector. CNSL should be considered as thrust product for export.

REFERENCE &BIBLIOGRAPHY
http://www.fao.org/inpho_archive/content/documents/vlibrary/ac306e/ac306e04.html http://www .anacardium.info