BEEDI MANUFACTURING (CAP: 1100 PACKS/DAY)
[EIRI/EDPR/4614] J.C. 2831XL
The beedi industry in India is huge, unregulated, and a breeding ground for festering occupational hazards. In 2022, the estimated number of beedi smokers in the age group 15 to 69 years was around 7.9 crores. To compare, the same estimate for cigarette smokers was around 6.1 crores.
The industry also employs a large number of women and children. Out of the estimated 60 lakh beedi workers in India, approximately 90% are women.
On paper, there are multiple legislations protecting beedi workers in India such as the Beedi and Cigar Workers (Conditions of Employment) Act 1966, Beedi Workers’ Welfare Fund 1976 and social security laws such as the Provident Fund Act 1952, Employees State Insurance Act 1948, Maternity Benefit Act 1961 etc.
In India, beedis are twice as popular as cigarettes. However, unlike the cigarette industry, beedi production and sales remain unregulated. Research also shows that death rates among beedi smokers are 64 per cent higher than for non-tobacco users.
The industry’s largely unregulated nature leads to the mass exploitation of beedi workers. Policy solutions, better implementation and social mobilisation are needed to ensure that beedi workers are treated fairly and get the compensation that they deserve.
Through this report, we hope to analyse the beedi industry in various states across India. We hope to uncover the loopholes in the implementation of policies in the beedi industry and provide suggestions for the same.
Bidi, originated in the Indian Subcontinent, is a thin cigarette or mini-cigar filled with tobacco flakes and as a practice is wrapped in a tendu leaf (plants that are native to Asia- Diospyrosmelanxylon) tied with a string adhesive at one end. The name is derived from the Marwari word beeda a mixture of betel nuts, herbs, and spices wrapped in a leaf.
COST ESTIMATION
Plant Capacity 1100 Packs/Day
Land & Building (3000 sq.mt.) Rs. 85.25 Lac
Plant & Machinery Rs. 42.70 Lac
Working Capital for 2 Months Rs. 1.51 Cr
Total Capital Investment Rs. 2.58 Cr
Rate of Return 34%
Break Even Point 55%
CONTENTS
INTRODUCTION
OVERVIEW OF TENDU LEAVES
INTRODUCTION
TENDU LEAVES
TENDU TREE
TOBACCO CULTIVATION, HARVESTING AND CURING
CHHATTISGARH TENDU LEAVES ANNUAL PRODUCTION AND VALUE:
TENDU LEAVES COLLECTION AND TRADE PRACTICES
THE YEAR WISE DETAIL OF COLLECTION AND SALE OF TENDU LEAVES IN THE STATE ARE AS FOLLOWS:-
MADHYA PRADESH TENDU LEAVES ANNUAL PRODUCTION AND VALUE:
DATA OF TENDU LEAVES TRADE
COLLECTION RATES IN DIFFERENT SEASONS
MANAGEMENT PRACTICES
YOUNG TENDU TREES BY SIDE BRANCH CUTTING
MARKETING STRATEGIES IN DIFFERENT STATES
TENDU LEAVES COLLECTION AND TRADE PRACTICES
COLLECTION OF TENDU LEAVES
LOCAL COLLECTION CENTER 'PHAD'
ODISHA TENDU LEAVES ANNUAL PRODUCTION AND VALUE:
UNIQUENESS OF ODISHA'S TENDU (KENDU) LEAF
MARKETING OF KENDU LEAFS BY THE OFDC
SELLING OF KENDULEAFS THROUGH E-TENDER/AUCTION SALE
THE QUANTITY SOLD AND ITS SALE VALUE REALIZED DURING LAST FIVE YEARS ARE SHOWN BELOW:
EXISTING LEGISLATION IS CURRENTLY IN PLACE IN INDIA:
THE BEEDI WORKERS WELFARE CESS ACT, 1976
THE MINIMUM WAGE ACT, 1948
BEEDI AND CIGAR WORKERS (CONDITIONS OF EMPLOYMENT) ACT, 1966
THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT 1970
THE EQUAL REMUNERATION ACT 1976
THE MATERNITY BENEFIT ACT 1961
THE CIGARETTES OR OTHER TOBACCO PRODUCTS (PROHIBITION OF ADVERTISEMENT AND REGULATION OF TRADE AND COMMERCE, PRODUCTION, SUPPLY AND DISTRIBUTION) ACT 2003 OR COTPA
TAXATION
EMPLOYMENT IN THE BEEDI INDUSTRY
STAKEHOLDERS:
INDIVIDUAL STAKEHOLDERS:
INSTITUTIONAL STAKEHOLDERS:
THE MIDDLEMAN:
BEEDI CONSUMPTION COSTS
TOBACCO SMOKING
SMOKELESS FORMS OF TOBACCO
PAAN (BETEL QUID) WITH TOBACCO
PAAN MASALA
MAINPURI TOBACCO
MAWA
TOBACCO AND SLAKED LIME (KHAINI)
TOBACCO INDUSTRY AND EXPORTS INDIA
TOBACCO EXPORT TREND
MAJOR MARKETS
MARKET POTENTIAL
MANUFACTURING PROCESS OF BEEDI
THE PROCESS OF BEEDI MAKING INVOLVES THE FOLLOWING:
PRINCIPLES OF PLANT LAYOUT
MAJOR PROVISIONS IN ROAD PLANNING FOR MULTIPURPOSE SERVICE ARE:
PLANT LOCATION FACTORS
PRIMARY FACTORS
1. RAW-MATERIAL SUPPLY:
2. MARKETS:
3. POWER AND FUEL SUPPLY:
4. WATER SUPPLY:
5. CLIMATE:
SPECIFIC FACTORS
6. TRANSPORTATION:
7. WASTE DISPOSAL:
8. LABOR:
9. REGULATORY LAWS:
10. TAXES:
11. SITE CHARACTERISTICS:
12. COMMUNITY FACTORS:
13. VULNERABILITY TO WARTIME ATTACK:
14. FLOOD AND FIRE CONTROL:
EXPLANATION OF TERMS USED IN THE PROJECT REPORT
1. DEPRECIATION:
2. FIXED ASSETS:
3. WORKING CAPITAL:
4. BREAK-EVEN POINT:
5. OTHER FIXED EXPENSES:
6. MARGIN MONEY:
7. TERM LOANS:
8. TOTAL LOAD:
9. LAND AREA/MAN POWER RATIO:
UTILITIES
POWER
WORKING
TOTAL MANPOWER AND PAYROLL
UTILITIES
PLANT AND MACHINERY MANUFACTURERS
BEEDI MANUFACTURERS
HERBAL BEEDI MANUFACTURERS
SUPPLIERS OF RAW MATERIALS
SUPPLIERS OF PLANT AND MACHINERY
WEIGHING MACHINES
PACKAGING MACHINE
D.G. SET
LABORATORY TESTING EQUIPMENTS
DOCUMENTS REQUIRED FOR LICENSES
LIST OF DOCUMENTS:
ADDRESSES OF RELEVANT GOVERNMENT OFFICES
ADDRESSES OF FINANCIAL INSTITUTIONS
SWOT ANALYSIS
PRODUTS IN THE MARKET
ORGANIZATION CHART
PLANT LATOUT
IMPLEMENTATION SCHEDULE
APPENDIX – A:
01. PLANT ECONOMICS
02. LAND & BUILDING
03. PLANT AND MACHINERY
04. OTHER FIXED ASSESTS
05. FIXED CAPITAL
06. RAW MATERIAL
07. SALARY AND WAGES
08. UTILITIES AND OVERHEADS
09. TOTAL WORKING CAPITAL
10. TOTAL CAPITAL INVESTMENT
11. COST OF PRODUCTION
12. TURN OVER/ANNUM
13. BREAK EVEN POINT
14. RESOURCES FOR FINANCE
15. INSTALMENT PAYABLE IN 5 YEARS
16. DEPRECIATION CHART FOR 5 YEARS
17. PROFIT ANALYSIS FOR 5 YEARS
18. PROJECTED BALANCE SHEET FOR (5 YEARS)
