Start a Honey-Based Beverages Business

       

(205)  Start a Honey-Based Beverages  Business

Natural honey has been one of the man's earliest foods. Honey is mainly produced from flowers and plants that require insect pollination by honey bee (Apis mellifera). This is produced in almost every part of the world and can be consumed fresh or stored by canning or bottling. It is used in ayurvedic medicines, direct consumption sweetener, as an ingredient for cough mixtures, sedatives, etc. Natural honey is available throughout the country. Marketing of crude honey poses problems due to its unattractive appearance, presence of waxes, insect eggs, etc. Delicious ready-to-serve (RTS) beverages from clarified are consumed like fruit based RTS. Honey-ginger beverage makes an exiting and refreshing drink.1.0 Product And Its Applications

2.0 Market Potential

RTS beverages are usually consumed for quenching of thirst and getting instant energy. Honey-based beverages have good taste and flavour. Sensory evaluation of the product has shown a good acceptability among consumers.

3.0 Basis And Presumptions

a) The unit proposes to work at least 300 days per annum on single shift basis.

b) The unit can achieve its full capacity utilization during the 3rd year of operation.

c) The wages for skilled workers is taken as per prevailing rates in this type of industry.

d) Interest rate for total capital investment is calculated @ 12% per annum.

e) The entrepreneur is expected to raise 20-25% of the capital as margin money.

f) The unit proposes to construct own building as per F.P.O. specifications.

g) Costs of machinery and equipment are based on average prices enquired from machinery manufacturers.

4.0 Implementation Schedule

Project implementation will take a period of 8 months. Break-up of the activities and relative time for each activity is shown below:

Scheme preparation and approval	:	01 month
SSI provisional registration	:	1-2 months
Sanction of financial supports etc.	:	2-5 months
Installation of machinery and power connection	:	6-8 months
Trial run and production	:	01 month

5.0 Technical Aspects 5.1 Availability of Raw Material

Honey, the basic raw material is available in the country in four forms viz., extracted honey, section-comb honey, chunk honey and pressed honey. The other raw materials required are ginger, sugar, citric acid, sunset yellow FCF and sodium benzoate. All the raw materials are readily available in local market. 

5.2 Process of Manufacture 

Technology for the manufacture of RTS beverages from honey is available with CFTRI, Mysore. For honey-based beverage, hot sugar syrup is prepared by using sugar, citric acid and water. A known quantity of honey is added to the hot syrup and heated to the desired temperature. Fresh ginger is washed thoroughly, peeled, sliced and homogenised with a little quantity of water in a waring blender. The slurry is boiled with water for a specific time after adding citric acid. After setting, the clear liquid is decanted and filtered. The clear ginger extract is mixed with the syrup prepared with honey, sugar and water. This solution is heated to a desired temperature. After cooling, the preservative is added and mixture is transferred to a sedimentation tank and allowed to settle for 24 hours. The beverage is further filtered. The clarified beverage is heated to the desired temperature and permitted food colour is added and then filled hot into sterilized bottles and crown corked. The manufacturers have to take a licence under FPO.

5.3 Quality Control and Standards : As per FPO requirements

6.0 Pollution Control

There is no major pollution problem associated with this industry except for disposal of waste which should be managed appropriately. The entrepreneurs are advised to take "No Objection Certificate" from the State Pollution Control Board. 

7.0 Energy Conservation

The fuel for the steam generation in the boiler is coal or LDO depending upon the type of boiler. Proper care should be taken while utilising the fuel for the steam production. There should be no leakage of steam in the pipe lines and adequate insulation should be provided.

8.0 Production Capacity

Quantity	:	4,20,000 bottles
Value	:	Rs. 37.80 lakh
Installed capacity	:	6 lakh bottles of 200 mL cap./annum
Optimum Capacity utilization	:	70%
Manpower	:	25
Utilities	:
Motive Power	:	25 kW
Water	:	10 kL/day
Coal	:	50 kg/day

9.0 Financial Aspects
9.1  Fixed Capital  

9.1.1  Land & Building	Amount (Rs. lakh)
Land 250 sq.mtr	0.30
Built up Area 200 sq. mtr.	5.00
Total cost of Land and Building	5.30

9.1.2 Machinery and Equipment 

Description	Amount (Rs. lakh)
Steam jacketed kettles, stainless steel tanks, bottle washing machine, bottle filling machine, heavy duty crown corking machine, buchner funnels/flasks, vaccum pump, weighing scale, baby boiler, soaking tank, working tables etc.	6.00
Erection & electrification @10% cost of machinery & equipment	0.60
Office furniture & fixtures	0.40
Total	7.00

 9.1.3 Pre-operative Expenses   

Consultancy fee, project report, deposits with electricity department etc.	0.70
9.1.4 Total Fixed Capital (9.1.1+9.1.2+9.1.3)	13.00

9.2 Recurring Expenses Per Annum  
9.2.1 Personnel  

Designation	No.	Salary  Per month	Amount  (Rs.lakh)
Factory Manager	1	9000	1.08
Supervisors	2	6000	1.44
Office Assistant	2	5500	1.32
Store Keeper	1	4000	0.48
Boiler Man	1	4000	0.48
Skilled workers	4.	2000	0.96
Unskilled workers	14	1500	2.52
			8.28
Perquisites @10%			0.82
Total	25		9.10

9.2.2 Raw Material including packaging materials 

Particulars	Qty. (MT)	Rate	Amount (Rs. lakh)
Honey	8.4	80000	6.72
Ginger	0.6	5000	0.03
Sugar	8.4	16000	1.34
Citric Acid	0.17	120000	0.20
Color & Flavour	LS	LS	0.21
Bottles	4.40 lakh	6.00	26.40
Crown corks	4.20 lakh	0.50	2.10
Total			37.00

9.2.3	Utilities	Amount (Rs. lakh)
	Power 25/kW	1.80
	Water 10kL/day	0.03
	Coal 50 kg/day	0.07
	Total	1.90

9.2.4	Other Contingent Expenses	Amount (Rs. lakh)
	Repairs and maintenance@10%	0.70
	Consumables & spares	0.22
	Transport & Travel	0.18
	Publicity	0.20
	Postage & stationery	0.08
	Telephone	0.15
	Insurance	0.12
	Total	1.65

9.2.5	Total Recurring Expenditure	Amount (Rs. lakh)
	(9.2.1+9.2.2+9.2.3+9.2.4)	49.65

9.3	Working Capital
	Recurring Expenditure for 3 months	12.42

9.4	Total Capital Investment	Amount (Rs. lakh)
	Fixed capital (Refer 9.1.4)	13.00
	Working capital (Refer 9.3)	12.42
	Total	25.42

10.0 Financial Analysis 

10.1 Cost of Production (per annum)	Amount (Rs. lakh)
Recurring expenses (Refer 9.2.5)	49.65
Depreciation on building @5%	00.25
Depreciation on machinery @10%	00.66
Depreciation on furniture @20%	00.08
Interest on Capital Investment @12%	03.06
Total	53.70

 10.2  Sale Proceeds (Turnover) per year   

Item	Qty. (MT)	Rate per MT	Amount (Rs.lakh)
RTS beverage packed in 200 mL glass bottles	4,20,000	9.00	37.80
Refund on returnable bottles	4,20,000	6.00	25.20
Total			63.00

10.3   Net Profit per year
	= Sales - Cost of production
	= 63.00 - 53.70
	= Rs. 9.30
10.4   Net Profit Ratio
	Net profit X 100 ------------------------ Sales
	9.30 X 100 -------------------- 63.00
	= 14.77%
10.5   Rate of Return on Investment
	= Net profit X 100 -------------------------- Capital Investment
	9.3 X 100 ---------------- 25.42
	= 36.58%

10.6 Annual Fixed Cost	Amount (Rs. Lakh)
All depreciation	0.99
Interest	3.06
40% of salary, wages, utility, contingency	5.06
Insurance	0.12
Total	9.23

10.7   Break even Point
=	Annual Fixed Cost x 100 ----------------------------------------- Annual Fixed Cost + Profit
=	9.23 x 100 --------------------- 9.23 + 9.30
=	50%

11.0 Addresses of Machinery and Equipment Suppliers 

Batliboi Engineers (Bangalore) Pvt. Ltd.
99/2&3, N.R.Road
Bangalore - 560 002 

B.Sen Barry & Co.
65/11, New Rohtak Road
New Delhi - 110 005 

Gardners Corporation
158 Golf Links, New Delhi - 110 003 

Narene Tulaman Manufacturers Pvt. Ltd.
Balanagar, Hyderabad - 500 037

Raylon Metal Works
Kondivitta Lane, J.B.Nagar, Andheri
Mumbai - 400 059 

Bajaj Maschinen Pvt. Ltd.
7/20-7/27 Jai Laxmi Industrial Estate, Site IV
Sahibabad Industrial Area - 201010
Dist.Ghaziabad, UP 

SSP (Pvt) Ltd.
13th Milestone, Mathura Road
Faridabad - 121003, Haryana 

Narangs Corporation
P-25/90 Connaught Place
New Delhi - 110001 

Nirmal Services
2254/23 Rajguru Road, Chuna Mandi
Paharganj, New Delhi - 110055 

Ganson Ltd.
645 Anna Salai, Chennai - 600006 

Grovers Pvt. Ltd.
223, Kaliandas Udyog Bhavan
Prabhadevi, Mumbai - 400 025 

Macneill and Magor Ltd.
4, Mangoe Lane,
Kolkata - 700 001 

12.0 Other Special Features 

A careful selection of product mix is necessary based on the local market demand and availability of raw materials. The facilities can also be utilised to manufacture squashes, jams, jellies, marmalades etc. for fuller utilisation of capacity.