Spices (1500 kg per day)

SPICES

[CODE NO.4393]

Spices are vegetable products or mixtures free from extraneous matter thus are among the most demanded, exotic and expensive products available in Europe in the Middle Ages.Easy available ones being the chilly, cinnamon, black pepper, paprika, cardamom, cumin, nutmeg, ginger, bay leaves and cloves.

Spices and herbs are plants or trees derived substance consisting of rhizomes, bulbs, barks, flowers, buds, stigmas, style, fruits, seeds, and leaves which are grown and cultivated for their aromatic, pungent, colourful or otherwise desirable substances. These are indispensable to balance "humors" in food, a daily basis for good health at a time of recurrent pandemics. In ancient times, these were extensively used to prepare medicines at home because of the antioxidant and medicinal properties so were known as natural drugstore. The herbs and spices also contain essential oils, which are those flavouring components that are used in the FMCG industry for production of cosmetics and toiletry products.

FOOD PROCESSING INDUSTRY :

India itself has the largest domestic market for spices in the world.The raw form of spices are processed through cleaning, drying, grinding, blending, sieving, and grading of the spices accordingly, to forma finished ground product ready for shipping to customers.

Spices can make any food tasty, savoury, aromatic or even sweet which is why it is used. The preference of spice varies from region to region of the world. In the Middle and the Far East, spices and seasonings are an integral part of the food culture, and it cannot be prepared or served without spicy ingredients. So, there will be significant growth in the food processing industry along with the hectic work schedules and work from home culture resulting in sedentary lifestyles of the consumers, the growing popularity of convenience of getting food delivered at the doorstep are all propelling the demand around the world.

MARKET OVERVIEW :

In India:

India is the largest spice producer in the Global market. Along with being largest consumer and exporter of spices.India has certain natural comparative advantages like having temperate, tropical and sub-tropical climates necessary for growing spices,experienced and cultured farmers in the country, its large domestic market which uses spice derivatives in pharmaceuticals and FMCG industry. India is producing more than 75 varieties and is exporting in bulk, as stated by the International Organization for Standardization (ISO). The major produce in 2020 was from the state of Kerala which was the world’s capital of spice because of its multi climatic season, later in 2022 Madhya Pradesh became the largest spice producing state.

For the year 2021-22, India exported spices worth US$ 4,102.29 million. In September 2022, the exports of spices increased by 6.62% to US$ 330.46 million. In 2021-22, it exported 1.53 million tonnes of spices, to 185 different countries.This research is also used by stakeholders and practitioners to examine the foreign tourist’s spice preferences in India, which can be used to entice and enhance their revisit to India.

Globally:

Increasing demand for authentic cuisines globally these days is one of the foremost factors driving the consumption of herbs and spices. Global spices and seasonings can alter the taste of any cuisine and thus correlate with flavours of various regions. Nowadays, spice companies have started new advertising campaigns by featuring globally popular Chefs who increases consumer awareness about the need of consuming spices that retain their natural oils through an informative tone in order to experience a complete culinary delight and also to encourage their consumers to try recipes on their own at home. Manufacturers are also widely campaigning and presenting up on social media platforms such as Facebook, Pinterest, and Twitter to create awareness regarding the various uses of spices .

In past few years, Asia was the leading importer of spices and herbs with 45% of the market share, followed by Europe (28%), North America (US & Canada) (17%), Africa (4%), Latin America and the Caribbean (4%), and Oceania (2%).Asia Pacific held the largest share of over 37.6 percent in 2021, and China being one of the largest consumers of spices in Asia Pacific.The CAGR increase is accountable to this market’s high demand and growth, returning to pre-pandemic levels once the pandemic is over.

FUTURE FORECAST:

Future forecasting of spice industry is how companies make educated predictions about their future performance within their specific target markets. With the rise in vegetarianism and veganism which are part of the global trend that is rapidly expanding, contributes to the growth in spice demand. This will also make plant-based diets increasingly popular in near future.So the companies are focusing on new products, specifically for this group of population, to take advantage of the new trend.Whether planned or unintentional,spices have become vulnerable to adulteration, since the international spice trade has grown tremendously.

With the rise in tourism and hospitality in developing economies, there is an emerging sector popularly known by the term spice tourism which attracts tourists from all over because of the role of spice as a tactical tool in their ingredients. This is also further expected to provide vast opportunities for the manufacturers of seasonings and spices.

COST ESTIMATION

Plant Capacity 1500 Kg./Day

Land & Building (61,419 sq.ft.) Rs. 4.24 Cr

Plant & Machinery Rs. 62.00 Lac

Working Capital for 1 Month Rs. 91.08 Lac

Total Capital Investment Rs. 5.88 Cr

Rate of Return 34%

Break Even Point 47%

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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