SUBMITTED BY

GROUP NAME: ALPHA

DATE: 12- NOV - 2011



GROUP MEMBERS:


S.NO

NAME

ROLL NO

1

Amey Mariam ImmanueI

11MBA02

Divviya P

11MBA09

3

Jagadeeswari. S

11MBA13

4

V. Hema

11MBA12

5

Souparnika C. C

11MBA40











INTRODUCTION

1. Company name : FRESH BOX CO. LTD

2. Product name : a. Fresh Mushrooms
b. Canned Mushrooms

3. Product type : Consumer DurabIes


4. Product category : Food & Beverages











A. PRODUCT OR SERVICE DESCRIPTION:
Mushroom is a nutritious vegetarian delicacy and has many varieties.
Most of them are edible. t contains many vitamins and minerals but very low on
sugar and fat. t can be grown in a temperature between 20 and 30 C and required
relative humidity is 55 to 75%. Hence, North-East region has very good prospects of
cultivation as well as processing. Fresh mushrooms can be sold in the market. There
is also growing market for processed - dried and packed - mushrooms as their shelf
life is longer. There are two main varieties of mushroom viz. button type and oyster.
Oyster mushrooms are easy to cultivate and process and do not require huge
investment.
MANUFACTURING PROCESS

1. Process of CuItivation

For successful cultivation, careful attention has to be paid to three
aspects viz. good compost, reliable spawn and right temperature during growing
period or else partial or complete failure of the crop may result. Natural compost is
prepared from horse dung and wheat or barley straw. Some quantity of chicken
manure and 3 kgs. urea per ton of compost may be added. Compost preparation is
very crucial and advise from an expert may be taken. Mushrooms are grown in
wooden trays or boxes of 100 cm x 50 cm x 15 cm. They are filled well with the
compost and pressed firmly leaving 3 cm clear space on top of the tray. The grain
spawn is scattered on the surface of the compost which is then covered with a thin
layer of compost. After that the trays are covered with old newspaper sheets and
water is sprayed to provide humidity. The trays are then stacked vertically. At a
temperature of around 24 - 25 C white cottony mycelium spreads and premeate
through the compost. t takes around 12 to 15 days for the complete spawn running.
Ultimately, the surface of the compost is covered with half to one inch level of casing
soil. t is sterilised to kill insects, nematodes and moles. The casing soil is spread
over plastic sheets and treated with formalin and stirred frequently for a week to
remove formation fumes. After casing, the temperature has to be maintained at 24-
25 C for 3 days after which it must be lowered to 18 C. Thus, batches of trays must
be arranged in such a way that there is a regular daily production.

Step 1. Preparation of NaturaI Compost

Step 2. FiIIing of Wooden Trays with Compost & Pressing

The wooden frame Jute ropes on the wooden frame

Poly sheet on the jute rope. Filling cereal straw
Step 3.Scattering of grain spawn and covering of Trays



Sprinkling spawn over the surface Repeating filling and spawning 5 times


Step 4.Spraying of Water and Stacking of Trays

2. Mushroom Processing
Fresh mushrooms have very limited life and hence processing is
recommended to enhance their shelf-life. nitially, fresh mushrooms are washed in
cold water and then blanched in boiling water for about 3-4 minutes. Then they are
dehydrated in a drier and packed. t is advisable to pre-treat fresh mushrooms in a
solution containing brine to prevent discolouration. Packing is very critical as
formation of moisture contaminates mushrooms very quickly. Yield after drying
depends upon many factors like moisture content in fresh mushrooms, type of dryer,
process employed, moisture content required in the finished product etc. Hence
average yield is taken at 25%. Plain cans and a brine of 2% salt and 0.2% citric acid
are used for packing. The cans are exhausted at 19 oC for 7-8 minutes, sealed and
processed under pressure for 20-25 minutes.




Washing of Mushrooms in CoId Water






BIanching of Mushrooms in BoiIing Water






Dehydration and Packing




Processing of Cans and LabeIIing

BENEFITS OF OYSTER MUSHROOM GROWING

There are many remarkable ecological advantages in the
cultivation of edible fungi. One major advantage is the efficient re-integration of
agricultural residues such as horse and chicken manure, cereal straw, bagasse and
others. The spent mushroom substrate can then be used either as animal feed or as
compost for application in farm fields. The cost of oyster mushroom cultivation varies
according to regions and the specific type of cultivation, but generally, the growing of
oyster mushrooms is less expensive than that of other cash crops. The major reason
for this is it requires little space and inexpensive raw materials. Oyster mushroom
cultivation is economically efficient for the farmers of other crops, who do not have to
buy the raw materials for substrate and can use low cost structures for mushroom
cultivation on seasonal basis.



B. GENERAL EVALUATION AND PROSPECTS
o AppIications

Mushroom is an exotic and nutritious source of vegetarian food. t is a
major horticulture product all over the world and is also becoming popular in ndia.
Fresh mushrooms have very limited shelf life but dried and packed mushrooms have
considerable shelf life. This project can be commenced anywhere in the country.

o AvaiIabiIity of TechnoIogy & CompIiance

O The Agri-Horticultural Society of ndia, Kolkata, has successfully developed
the technical know-how. Compliance under the PFA Act is mandatory.

O CFTR, Mysore, has successfully developed the technical know-how.
Compliance under the PFA Act is mandatory.












C. MARKET ASPECTS:

Mushroom is a vegetarian delicacy and a suitable substitute for
meat and eggs. t is easily digestible as well. t is very popular in most of the
developed countries and being accepted in many developing countries like ndia.
Market for mushrooms is growing rapidly because of their nice aroma, subtle flavour,
nutritious values and special taste. Many exotic preparations are made from them
like soup, pickles, vegetables etc. t is also used for stuffing several food
preparations and for garnishing. But its consumption is still confined to urban and
semiurban population. Mushrooms have very short life after harvesting and hence
they are sold in fresh form. Their shelf life can be enhanced by processing them.
Processed mushrooms are packed in special quality polythene bags or Canned. This
variety can be sold to far off places.Consumption of mushrooms is increasing in the
North-East region and Guwahati, Shillong, Kohima etc. are potential markets.

Target market :
O North eastern regions - Guwahati, Shillong, Kohima etc.
O Consumption of mushrooms is increasing in the North-East region and they
are potential markets.

Segmentation:
O Households
O Economic product

SaIes distribution channeI:
O Road transport
O Cargo via airways
O Railways




D. PRODUCTION REQUIREMENT

A. Cost of the project and means of financing

S.NO

ITEM

AMOUNT

1

Land and Building

310000

2

Plant and Machinery

395000

3

Miscellaneous Assets

60000

4

P&P Expenses

75000

5

Working Capital

160000

TOTAL

1000000

B. Means of Finance


S.NO

ITEMS

AMOUNT

1

Promoters' Contribution

330000

2

Term Loan from Bank/F


670000

TOTAL

1000000

Financial assistance in the form of Grant is available from the Ministry of Food
Processing ndustries, Govt. of ndia, towards expenditure on technical civil works
and plant and machinery for eligible projects subject to certain terms and conditions.

C. Production capacity
4 Production is estimated to be 2500 kg / month.
4 Annual production is estimated to be 30000 kg/ year (30 tons/year).

D. SaIes revenue

Product


Qty/
month(kg)

Price/kg

MonthIy saIes
VaIue (Rs)

AnnuaI SaIes
VaIue (Rs.)


Fresh
Mushrooms

910

55

50,050

600,600


Canned
Mushrooms

1590

85

135,150

1,621,800


TOTAL

2500

185,200

2,222,400

PROJECTED / ESTIMATED PROFITS

NO.

PARTICULARS

AMONUT (RS)

A

Production Capacity

30000 kg / 30 tons

Expected Sales

2,222,400

B

COST OF PRODUCTION


Raw And Packing Materials

1,204,800

Utilities

240000

Salaries

183600

Selling Expenses

111120

TotaI

1739520

C

PROFIT BEFORE INTEREST & DEPRECIATION

482880

Depreciation On Land And Building

15500

Depreciation On Plant And Machinery

19750

nterest On Term Loan

53600

ESTIMATED NET PROFIT

394030
E. CAPITAL REQUIREMENT

1. Land and BuiIding


S.NO

PARTICULARS

AREA (SQ.MTRS)

COST (RS.)

1

Land

200

60,000

2

Building

100

2,50,000

TotaI

3,10,000

2. PIant and Machinery

Assuming a capacity of 2500 kgs per month, the annual capacity would be 30
tonnes or 3000 kgs. Following machines shall be required.


S.NO

ITEM

QTY.

PRICE (RS.)

1

Tray-type Dehydrator

1

70,000

2

Steam-jacketed Kettle

1

65,000

3

Can Steamer

1

20,000

4

Blanching Equipments

1

25,000

5

Straight-line Exhaust Box with electric motor, gear
box etc

1

45,000

6

Canning Retort with attachment

1

35,000

7

Stacking Trays

100

40,000

8

Baby Boiler

1

60,000

9

Laboratory Equipments

--

35,000

TotaI

395000


3. Working CapitaI Requirements

S.NO

PARTICULARS

MONTHLYREQUIREMENT

1

Stock of packing material

20000

2

Stock of finished goods (canned mushrooms)

50000

3

Receivables

70000

4

Working expenses

20000

TOTAL

160000

4. MisceIIaneous Assets
Some other assets like furniture & fixtures, working tables, storage
racks, SS utensils, plastic tubs, etc. shall be required for which a provision of Rs.
60,000/- is made.

5. PreIiminary & Pre-operative Expenses
There will be many pre-production expenses like market survey
expenses, registration expenses, establishment, administrative & travelling
expenses, trial run expenses etc. A provision of Rs.75, 000/- is made towards them.


TOTAL CAPITAL REQUIREMENT


S.NO

ITEM

AMOUNT

1

Land and Building

310000

2

Plant and Machinery

395000

3

Miscellaneous Assets

60000

4

P&P Expenses

75000

5

Working Capital

160000

TOTAL

1000000















II. RAW MATERIALS AND OTHER REQUIREMENTS

PRODUCT

QTY.

PRICE

MONTHLY
ESTIMATE
(RS.)


ANNUAL
ESTIMATE
(RS)

Spawn

1550 Kgs

15 /Kg

23250


315000

Wheat/Barley Straw

800 kg

5 /Kg

4000


49800

Formaline
-- --
10000


120000

nsecticides
-- --
10000


120000

Cans

15000 No's

2/Tin

30000


360000

Plastic Bags, Cartons, Labels,
Box-strapping, etc.
--

--
20000

240000

TotaI

100400

1,204,800

III. MANPOWER REQUIREMENT

PARTICULARS


NOS.

MONTHLY
SALARY (RS.)


TOTAL MONTHLY
SALARY (RS.)

TOTAL ANNUAL
SALARY (RS)

Skilled Workers

2

2,250

4,500

54000

Semi-skilled
Workers

2

1,650

3,300

39600

Helpers

4

1,250

5,000

60000

Salesman

1

2,500

2,500

30000

TOTAL

15,300

183600
IV.MISCELLENOUS COST / EXPENSES


ITEMS

CONDITIONS

ANNUAL
ESTIMATION (RS)

Utilities (power and water)

20000/ month

240000

Selling Expenses

5% of the annual sales

111120

nterest on term loan of Rs 670000

8% per annum

53600

Depreciation on land & building

5 % per annum.

15500

Depreciation on plant & machinery

5% per annum

19750

TOTAL

439970



A.TOTAL COST (II + III + IV)


S.NO

PARTICULARS

AMOUNT (RS)

1

Estimated Annual Cost On Raw Materials

1204800

2

Estimated Annual Salary

183600

3

Estimated Miscellaneous Expenditure

439970

TOTAL COST

1,828,370




B.EXPECTED ANNUAL SALES


PRODUCT


QTY/
MONTH(KG)

PRICE/KG

MONTHLY
SALES
VALUE (RS)

ANNUAL
SALES VALUE
(RS.)


Fresh
Mushrooms

910

55

50,050

600,600


Canned
Mushrooms

1590

85

135,150

1,621,800


TOTAL

2500

185,200

2,222,400


EXPECTED ANNUAL PROFIT (B - A)

4 Total sales = Rs. 2222400
4 Total cost = Rs. 1828370

ANNUAL PROFIT = TOTAL SALES - TOTAL COST
= 2222400 1828370
= Rs. 394,030





EXPECTED ANNUAL PROFIT = RS 394030