Garlic Powder

Uploaded on : June 2010

Product and its applications

Garlic powder is an important ingredient of Indian cooking. It is being used for over hundred years as a condiment. It helps in absorption and digestion of food has anathematic and antiseptic properties and is thus used in several medicinal preparations. Garlic is grown in many states in the country with M.P, U.P, Maharashtra, Haryana & Gujarat bing the main cultivators. Manufacture of garlic powder from raw bulb is a well established activity in Europe and U.S and is now taking roots in India. Garlic powder is a hygienically prepared product. It is easy and convenient to use and is liberally utilized in Indian food preparations be it vegetarian or non veg. It can be manufactured in any place but should be confined to garlic producing areas for ease of procurement.

Know how has been developed by CFTRI and is available. Compliance under PFA Act is mandatory.

Industry Profile and Market Assessment

Conventionally garlic is used since centuries as a condiment in food preparations like flavouring mayonnaise and tomato ketchup and salad dressings, chutney and picles, spaghetti stews etc. In Indian households garlic bulbs are crushed and used as wet ingredient in food preparation. The availability of dry garlic powder eliminates the wet grinding and processing and garlic in powder form is added as any other item. The market for the product is very widely spread and bulk of the household's restaurants, eateries, caterers, and clubs use it regularly. Due to its medicinal properties it has many applications in medicine. Use of garlic powder is increasing as it is easy to handle, avoids watage and is hygienic. There are good prospects of its export to gulf countries and even Europe. The hygienic preparation and its quality are two important factors. A small unit with limited manufacturing capacity will also be send a message that its products are homemade and cater to demand only. The unit can also seek franchise from the reputed manufacturers to cater to their requirement in the area. The area selection for marketing and its pricing and quality are of utmost importance to capture a market.

Manufacturing Process & Know How

Garlic powdering is a simple process. Thraw garlic bulbs are scrubbed manually under mild pressure to facilitate removal of skin and separation of cloves. The cloves are then dried and dehydrated. Dried cloves are then powdered in the mechanical unit to required mesh size and packed.

Know how is available with Central Government research Laboratories. The machinery is all indigenously available.

The production capacity envisaged is 300 tonnes per year keeping in view the market.

Plant and Machinery

The product does not require many items of machinery. Keeping in mind the production capacity of 300 tonnes per year the unit will require the following machines. The main plant and machinery required comprise

• Pre Conditioning machine - 1 nos.
• Tray drier with 48 trays - 1 nos
• Husk Remover. - 1 nos
• Powdering unit 75 kg cap. - 1. nos.
• Air classifier - 1nos.
• Weighing scales plastic crates, sealing machine etc.

The total cost of machinery is estimated to be Rs.4, 45,000/-.

The unit will also require miscellaneous assets such as furniture, fixtures, storage facilities etc. the total cost of these is estimated to be Rs. 75,000/-. The power requirement will be 35 HP.

Raw material and Packing Material

The basic raw material for the unit is good quality full grown matured bulbs of garlic. Procurement of good variety can be negotiated from different states. Besides the unit will also require packing material like plastic films, card board boxes etc. The price of raw material and packing material at full capacity utilization is estimated to be Rs. 61.08 lakhs per year. At 65% capacity in 1st year the cost works out to Rs40.20 lakhs.

Land and Building

For smooth operation of the unit, it will require a small plot of land 250 sq.mts with a built up area of 125 sq. mts including storage facility. The same may cost approx. Rs. 3.90 lakhs.

Manpower

For smooth functioning of the unit the requirement of man power is expected to be around 12 persons.

Skilled Workers	2
Semi skilled workers	2
Helpers	8
The annual salary bill is estimated to be around	Rs.2.52 lakhs.

Sales Revenue: (100% capacity)

As against the rated capacity of 300 tonnes the capacity utilization in first year is taken as 65%. Assuming a sale price of Rs.31,250/- per ton the annual sales revenue at rated capacity is Rs.93.75 lakhs. The same at 65% utilization is Rs.60.94 lakhs.

Cost of Project

Product	Rs. lakhs
Land & Building	3.90
Plant & Machinery	4.45
Other assets	0.75
Preliminary expenses	1.00
Margin money	2.10
Contingencies & pre-expenses	0.85
Total	13.05

Means of Finance

Promoters Contribution	3.95
Term Loan	9.10
Total	13.05

Profitability:(65% capacity)

Sales	60.94 (Rs. lakhs)
Raw material	40.20
Salary	2.50
Utilities	0.90
Repairs & Maintenance	0.60
Stores & Spares	0.48
Selling & Admn expenses	11.40
Depreciation	1.36
Interest on T.L	1.00
Interest on W.C	0.54
Cost of production	58.98
Profit	1.96

Requirement of Working Capital

		Margin	W.C	Margin Money
Raw material	1 month	25%	0.40	0.10
Stock of finished goods	15 days	25%	1.40	0.35
Working expenses	1 month	100%	1.00	1.00
Sale on credit	1 month	25%	3.00	0.75
Margin money for W.C				2.20

Break Even point

45%

Machinery Suppliers

• M/S Forsberg Agritech P. Ltd.,Makarpura,Vadodara.
• M/s Parmar Engg. Works, Jasdan, Gujarat.
• M/S Sahayog Steel Fabrications.Bhojraj para, Gondal
• GM/S Septu India P Ltd. Begampur, Khatola, Gurgaon

Contact for more information:

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com