INSTANT COFFEE [FREEZE DRIED]
[CODE NO.4109]
Instant (or soluble) coffee has been widely used for decades because of its convenience. During the height of its popularity in the 1970s, nearly a third of the roasted coffee imported into the United States was converted into an instant product, resulting in annual sales of more than 200 million pounds. Today, about 15% of the coffee consumed in the United States is prepared by mixing instant granules with hot water, either at home, in offices, or in vending machines. Furthermore, development of good quality instant products has helped popularize coffee in cultures that historically drank tea.
Since its invention, researchers have sought to improve instant coffee in a variety of ways. For example, some of the early powdered versions did not dissolve easily in water, leaving clumps of damp powder floating in the cup. Coffee aroma dissipates easily, and manufacturers have tried to develop treatments that will make a jar of instant coffee smell like freshly ground coffee when it is opened. More modern manufacturing processes make instant coffee granules that look more like ground coffee. Finally, a major goal has been to produce an instant coffee that tastes as much as possible like the freshly brewed beverage.
The primary advantage of instant coffee is that it allows the customer to make coffee without any equipment other than a cup and stirrer, as quickly as he or she can heat water. Market researchers have also found that consumers like making coffee without having to discard any damp grounds. Some coffee drinkers have become so used to drinking instant coffee that at least one manufacturer found in taste tests that their target audience did not even know what fresh-brewed coffee tastes like.
Two of the 50 known species of coffee beans dominate the beverage coffee industry. Coffee arabica varieties, grown primarily in Latin America, India, and Indonesia, are relatively mild in flavor and, consequently, bring a higher price. They are also relatively expensive to harvest, since individual coffee cherries must be handpicked at their peak of ripeness. Coffee robusta varieties, grown mainly in Africa, India, and Indonesia, have a harsher flavor, but they are cheaper to grow since they can be harvested over a range of ripeness and are more resistant to diseases and insects. Because of their more attractive price, the robustas are widely used in the manufacture of instant coffees.
Roasting at temperatures above 300°F (180°C) drives the moisture out of coffee beans. Beans destined for use in instant products are roasted in the same way as beans destined for home brewing, although the moisture content may be left slightly higher (about 7-10%). The beans are then ground coarsely to minimize fine particles that could impede the flow of water through the industrial brewing system.
COST ESTIMATION
Plant Capacity 30 MT./Day
Land & Building (20,000 sq.mt.) Rs. 19.66 Cr.
Plant & Machinery Rs. 327.10 Cr.
Working Capital for 2 Months Rs. 68.48 Cr
Total Capital Investment Rs. 418.94 Cr
Rate of Return 59%
Break Even Point 35%
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)
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