SUGAR PLANT
[CODE NO.4444]
Sugar refers to a sweet crystalline substance which is prepared from sugar cane and sugar beet. It is used across the globe for innumerable food and non-food applications. In addition to offering a sweet taste, sugar performs a variety of other functions in the food industry. It is used as a preservative and prevents the development of microorganisms. It is also used for preventing formation of large ice crystals in frozen products like ice cream. Apart from this, sugar encourages fermentation in products which contain yeast. Moreover, it is used in baked goods for retaining moisture and preventing staleness. Sugarcane is a crop primarily grown in tropical countries and has the notable quality of serving as both a food and a fuel source. Along with supplying 86 per cent of the world’s sugar (the remaining coming from beet), sugarcane also serves as a key biofuel feedstock, given that it is highly efficient in converting sunlight into energy. Seventy-five per cent of the sugarcane produced globally is consumed by the food manufacturing sector; the balance is used in biofuel production. As of 2020, the production of sugar cane in Kenya increased to roughly 6.8 millionmetric tons, up from 4.6 million metric tons in the previous year. This represented a growth of nearly 50 percent. boosted by favorable weather conditions.The global sugar market reached a volume of 185 million Tons in 2021. Looking forward, the market is projected to reach 206.6 million Tons by 2027, exhibiting a CAGR of 1.8% during 2022-2027.
COST ESTIMATION
Plant Capacity 50 MT/Day
Land & Building (25,135 sq.mt.) Rs. 22.47 Cr
Plant & Machinery Rs. 37.37 Cr
Working Capital for 0.5 Months Rs. 2.61 Cr
Total Capital Investment Rs. 66.40 Cr
Rate of Return 14%
Break Even Point 75%
APPENDIX – A:
01. PLANT ECONOMICS
02. LAND & BUILDING
03. PLANT AND MACHINERY
04. OTHER FIXED ASSETS
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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