Menthol Crystal
| Quality And Standards | IS 3134 Production Capacity | Per annum |
| Item | Qty. | Value(Rs.) |
| Menthol Flakes | 170.1 | 127575000 |
| De-mentholised oil (DMO) | 72.9 | 14580000 |
| Uploaded on | 13th December 2006 |
Introduction
Mint oil and its derivative menthol is widely used as flavouring ingredient for various products such as tooth paste, dental cream, cough syrups, confectionery, pan masala, chewing gums and in pain relieving preparations.
Mentha cultivation in India has proved quite remunerative to the growers, particularly to small holders and fitted well in the existing cropping system in mint growing area in the country, Mint growers consider mentha as a bonus crop as it does not disturb or replace the cultivation of any major winter (Rabi) or rainy season (Kharif) crop. Being a labour intensive crop mentha provides various employment opportunities in cultivation, distillation, processing field particularly in rural areas.
There are several species and varieties of mint oil which are cultivated in one or the other parts of the world, five of them are grown on commercial scale in India, these are (I) Menthaarvensis (ii) Mentha-piperita (iii) Menthaspicata (iv) Mentha-veridish (v) Menthacitrata.
The important mint producing regions in India are in the states of Uttar Pradesh and Punjab. The former accounts for about 90% of total area under mint production, the important mint production cultivation districts are Jalandhar, Ludhiana and Hoshiarpur.
Product and its Uses
Mentha oil is obtained from the leaves/entire plant of various mentha species and varieties. The Japanese mint (Mentha arvensis) is mainly cultivated in our country. The oil of Japanese mint is used as a source of natural menthol and dementholised oil (DMO). Because of its refreshing aroma and cooling effect, Mints have very wide spread use as flavouring agent in different pharmaceutical preparations.
Market Potential
The mint oil and its derivatives, menthol and DMO are now being marketed at various locations in North India as also being exported. The marketing of Japanese mint oil and menthol is wide spread. India is the second largest country in production of mints and its derivatives. India is exporting mints and its derivatives throughout the world worth Rs. 60-70 crores annually.
Basis and Presumptions
- The project is based on single shift basis and 300 working days in a year.
- Cost of machinery and equipment indicated in the profile refer to a particular make and prices are approximate to those prevailing at the time of preparation of project profile.
- Cost of installation, electrification etc. are taken as 10% of the cost of machinery and equipment.
- Depreciation on machinery and equipment has been taken as 10% of the cost of machinery and equipments.
- Margin money has been taken as 30% of the total capital investment.
- Break-even point has been calculated at the full capacity utilization.
Implementation Schedule
The following steps are involved in the implementation of the project
| Selection of site | 1 month |
| Preparation of project profile | 1 week |
| Registration of the unit from D.I./D.I.C. | 1 week |
| No objection certificate from Pollution Control Board | 2 weeks |
| Calling of quotations and preparation of detailed Project report | 1 month |
| Approach to commercial bank | 1 month |
| Installation and electrification of machinery and equipment | 2 weeks |
| Recruitment of staff | 1 month |
| Arrangement of raw materials and packaging materials | 2 weeks |
Keeping in view overlaps of some of the activities, the period normally required to implement the project is 5 to 6 months.
Technical Aspects
Process of Manufacture
Process of Manufacture
- Freezing of the mint oil.
- Removal of the oil crystals from the residual oil by centrifuging.
- Drying of the crystals.
After collection of the mint oil from farmers/brokers, it should be filtered prior to cooling as it usually contains some water and mucilaginous impurities, which prevent ready formation of the menthol crystals. For crystallization some producers use filter and centrifuge the oil.
Crystallization
Purified oil is slowly and gradually cooled progressively to lower temperature whereby menthol crystals form in each operation. The freezing process usually comprises three steps (I) cool at 14oC (II) 10oC and (III) –5oC for hours. Some times, actual process takes 48 hours and cooling up to -20oC temperature. Some manufacturers employ large refrigerators compartment. The large plants are equipped with regular freezing rooms. The gradual and slow cooling permits the formation of large and more regular crystals.
Separation of Menthol Crystals from the Dementholised Oil
This is performed by first decanting the remaining liquid oil from the crystal and centrifuging the crystals in large centrifuges rotating at the speed of about 1200 RPM. Some producers wash the crystals with small amount of water during the centrifuge process.
Drying of the Menthol Crystals
The centrifuged crystals are spread upon the trays in large compartments or Special room dried for approximately 36 hours in a slow current of air at a temperature of about 26ºC. This operation must be undertaken very carefully. Now the crystal is ready for packing and marketing.
Quality Control and Standards
Menthol crystals are to be made as per IS 3134.
Production Capacity (per annum)
Capacity
| Flakes | 170.1 MT |
| De-mentholated oil | 72.9 MT |
| Value | Rs. 142155000 |
Motive Power : 40 K.W.
Pollution Control
The raw materials and process are non-polluting. However, relevant guidelines and no objection certificate must be obtained from the State Pollution Control Board.
Energy Conservation
Regular maintenance of plant and machinery is required for better performance and conservation of energy.
Financial Aspects
Fixed Capital
(i) Land and Building
Amount (Rs.) |
|
| Land 500sq. mt. @ 5000 sq mt. | 2500000 |
| Covered area 400 sq. mt.@ Rs. 6000 and boundary wall | 2400000 |
| Total | 4900000 |
(ii) Plant and Machinery
Sl. No. |
Particulars |
Nos. |
Rate (Rs.) |
Value (Rs.) |
| 1. | Chilling plant cap. 492 litre, temp. (50ºC ) chart type | 12 | 75000 | 900000 |
| 2 | Centrifuge heavy duty R.P.M. 1200 | 4 | 75000 | 300000 |
| 3 | S.S. reaction vessel 6 with stirrer cap. 400kg | 6 | 100000 | 600000 |
| 4 | Dryer capacity 100 kg 12 trays with Thermostat temperature control | 2 | 300000 | 600000 |
| 5 | Vacuum filter | 4 | 50000 | 200000 |
| 6 | S.S Tray for storage | 24 | 10000 | 240000 |
| 7 | Laboratory Equipment | 500000 | ||
| 8 | Transportation and installation charge @ 10% of the cost of plant and machinery | 334000 | ||
| Total | 3674000 |
B. Working Capital
(i) Staff and Labour (per month )
Sl. No. |
Designation |
No. |
Salary (Rs.) |
Total (Rs.) |
| 1 | Chemist/Manager | 1 | 15000 | 15000 |
| 2 | Technical Assistant | 4 | 6000 | 24000 |
| 3 | Skilled Worker | 6 | 5000 | 30000 |
| 4 | Typist /Clerk | 1 | 5000 | 5000 |
| 5 | Watchman | 4 | 3000 | 12000 |
| Total | 86000 | |||
| Perquisites @ 22% | 18920 | |||
| Total | 104920 | |||
(ii) Raw Materials and Packing Materials (per month)
Sl.No. |
Particulars |
Qty. |
Rate (Rs.) |
Amount (Rs.) |
| 1 | Mint oil | 22500 kg | 400 kg | 10000000 |
| 2 | Chemicals | 20000 | ||
| 3 | Packing materials | 100000 | ||
| Total | 10120000 | |||
(iii) Utilities (per month)
Particulars |
Qty. |
Rate(Rs.) |
Total (Rs.) |
| Power | 2000 unit | 4 | 8000 |
| Fuel | 15000 | ||
| Total | 23000 | ||
(iv) Other Contingent Expenses
Particulars |
Total (Rs.) |
| Postage/Stationery | 5000 |
| Telephone | 5000 |
| Repair/maintenance 2% Annual of P/M | 6500 |
| Transportation | 50000 |
| Advertisement/publicity | 25000 |
| Miscellaneous expenses | 10000 |
| Total | 101500 |
(v) Total Working Capital (per month)
| = Rs.104920 + 10120000 + 23000 + 101500 |
| = Rs. 10349420 |
C. Total Capital Investment
| Fixed capital | 8574000 |
| Working capital (3months) | 31048260 |
| Total | 39622260 |
Machinery Utilization
Full machinery utilization has been taken in this project.
Financial Analysis
Cost of Production (per annum) |
(Rs) |
| Total recurring expenditure | 124193040 |
| Depreciation on building @ 5% | 120000 |
| Depreciation on plant and m/c @ 10% | 367400 |
| Interest on total capital investment @ 12% | 4754671 |
| Total | 129435111 |
| Or Say | 129435000 |
Turn Over (per annum) |
(Rs.) |
| By sale of | 28000 |
| Flakes 170100 kg @ 750 kg | 127575000 |
| De-mentholised 72900 kg @ Rs 200 kg | 14580000 |
| Total | 142155000 |
Profit (per annum)
Rs. 142155000 – Rs. 129435000 = Rs. 12720000
Rate of Return
Profit Total capital investment |
|
= Rs. 12720000 |
|
------------------------- × 100 Rs. 39622260 |
|
32.1 % |
Net Profit Ratio
Profit Sale |
|
= Rs. 12720000 |
|
------------------------- × 100 Rs. 142155000 |
|
8.9% |
Break-even Point
Fixed Cost |
(Rs) |
| Depreciation on building @ Rs. 5% | 120000 |
| Depreciation on plant and machinery @ 10% | 3674000 |
| Interest on total capital investment @ 12% | 4754671 |
| 40% of salary | 503616 |
| 40% of other expenses | 40600 |
| Total | 9092887 |
| B.E.P | Fixed cost × 100 Fixed cost + profit
|
|
=
Rs. 9092887 x100 Rs. 9092887 + Rs. 12720000 |
||
Rs. 9092887 Rs. 21812887 |
||
41.68% |
Addresses of Machinery and Equipment Suppliers
- M/s. Wisdoms Scientific Works
10, West Sadar Thana Road,
Delhi-110006 - M/s. Sandeep Instruments and Chemicals
3229, Ranjit Nagar,
New Delhi-110008 - M/s. Blue Star Limited
Block 2A, DLF Corporation Park,
DLF Qutab Enclave,
Phase-II, Gurgaon (Haryana) - M/s. India Projects and Equipments Pvt. Ltd.
D-170, Okhla Ind. Estate,
Phase-I,
New Delhi-110020 - M/s. Fric India Ltd.
Jeevan Vihar-3,
Parliament Street,
New Delhi. - M/s. Jindal Refrigeration
26, Netaji Subash Marg,
Darya Ganj,
New Delhi-110002 - M/s. Valcan Laval Ltd.
Depodi,
Pune-I, (M.S.)
- M/s. Adair Dut and Co India Pvt.
Ltd.
2, Asaf Ali Road,
New Delhi-110002
- M/s. Chemida (India)
Nagabkak Bazar,
347, Grant Road,
Mumbai.
- M/s. Hind Hungh Caccum Co. Pvt.
Ltd.
1024, Chord Road,
Rajaji Nagar,
Bangalore.
- M/s. Anup Engineering Ltd.
Anil Starches Premises,
Anil Road,
Ahmedabad
- M/s. A. R. Packaging Systems Ltd.
Sarvodaya, 1-10-6/3,
Begumpet,
Hyderabad - 110016
Addresses of Raw Material Suppliers
Mint oil be collected for U.P. Namely from Badaun, Barely, Muradabad, Rampur and Barabanki etc.
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
