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CASHEW SHELL NUT LIQUID

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					NSIC                                                                       Project Profiles


                           CASHEW SHELL NUT LIQUID


 1. INTRODUCTION
    Cashenut nutshell liquid is a versatile byproduct of the cashew industry. The oil is
    obtained from the spongy layer (pericarp) between the inner and outer shell of cashew
    nuts. It is extensively used in the manufacture of superior type of paints, insulating
    varnishes in the electrical industry, special types of adhesive cement, brake linings,
    phenolic resins etc. CNSL is an important ingredient for special types of paints and
    insulating varnishes. Cashew shell liquid produced by solvent extraction is of very
    high quality but due to irregular nature of raw material it is not viable, however
    expeller process of oil extraction is suitable.




 2. MARKET
    Demand for CNSL is good in the automobile, paint and electrical industries. CNSL
    also finds usage in the adhesive, phenolic resin and cement industries. Export
    market exists for this product in Japan and Korea.

 3. MANUFACTURING PROCESS
    (a) Preliminary Treatment: Waste Cotton rags are cut into small bits with the help of
    hand knives or power operated rag chooper after sorting (to remove non-cellulosic
    material) cut material is dusted on a wiremesh frame. In case of agro fibres the
    material after chopping is cooked in a small open digester with low percentage of
    Alkali and washed.
    The Cashewnut is processed by two methods: a) Roasting Process and b) Oil Bath
    process.
    Raw Cashewnut shell contains over 20% oil. In the oil bath process about 10% of the
    oil is recovered as a byproduct. By using oil expellers for extraction it is possible to
    extract a further quantity of about 15% more from the shells. Thus from 1 MT of
    shells upto 100 kgs of good quality oil could be extracted. It is recommended that a
    small unit for extraction and recovery of oil is set up adjacent to cashew processing
    unit in view of the economic importance and a ready foreign and indigenous
    consumption demand for the product.



 4. PRODUCTION CAPACITY PER ANNUM
    Capacity                                                 100000 Kgs    per
                                                                    annum
       Selling Price                                   Rs.       17 Per kg
NSIC                                                                      Project Profiles


 5. PROJECT COST/CAPITAL INVESTMENT
       S.No               Description                                              Amount Rs.
         1     Preliminary & Preoperative Expns                                        1500
         2    Fixed Capital                                                           76000
         3    Working Capital for                   0.5    month(s)                   79700
                      Total Project Cost                                             157200

 6. MEANS OF FINANCE
       S.No               Description                                  %age        Amount Rs.
         1    Promoter Contribution                                    15%            23580
         2    Subsidy /Soft Loan                                       20%            31440
         3    Term Loan                                                65%           102180
                             Total                                                   157200

 7. FINANCIAL ASPECTS

       A. FIXED CAPITAL
       i. Land and Buildings                      Rented                 1000 per month

       ii. Machinery and Equipment
       S.No               Description                        Qty.      Rate        Amount Rs.
         1    Hand operated Chooper                 Nos       1         70000          70000
              Holender beater and screw press
         2    Packing machine                                 1          3000          3000
         3    Electrification                                 1          3000          3000
                              Total                                                   76000

       B. WORKING CAPITAL

       i. Salaries & Wages (per month)
       S.No               Description                        Nos.     Sal/mon. Amount Rs.
         1    Supervisor/Entrepreneur                         1          2200          2200
         2    Skilled                                         2          1800          3600
         3    Unskilled                                       3          1200          3600
                            Total                                                      9400

       ii. Raw Material (per month)
       S.No               Description               Unit     Qty.      Rate        Amount Rs.
         1    Cashew shell                          Kgs     56000            2.5     140000
         2    Packing material                      Mtrs    2500               2       5000
                            Total                                                    145000

       iii. Utilities (per month)
       S.No               Description                                   Unit       Amount Rs.
         1    Power                                                     LS              500
         2    Water                                                     LS              500
                             Total                                                     1000
NSIC                                                                      Project Profiles


       iv. Other Expenses (per month)
       S.No               Description                                            Amount Rs.
        1     Postage & Stationery Expenses                                          1000
        2     Transportation Expenses                                                 500
        3     Advertisement Expenses                                                  500
        4     Consumeble Stores                                                       500
        5     Miscellaneous Expenses                                                  500
                             Total                                                   3000

       v. Total Working Capital (per month)
       S.No               Description                                            Amount Rs.
        1     Rent                                                                   1000
        2     Salaries and Wages                                                     9400
        3     Raw Material                                                         145000
        4     Utilities                                                              1000
        5     Other Expenses                                                         3000
                            Total                                                  159400

 8. COST OF PRODUCTION (PER ANNUM)
       S.No               Description                                            Amount Rs.
        1     Total Working Capital                                               1912800
        2     Depreciation                  @        15%                            11400
        3     Interest                      @        12%                            12262
                            Total                                                 1936462

 9. TURNOVER (PER YEAR)
       S.No               Description                Unit     Qty.    Rate Rs. Amount Rs.
        1                                                    100000
                                                 Kgs per annum             20     2000000
                             Total                                                2000000

10. FIXED COST (PER YEAR)
       S.No               Description                                            Amount Rs.
        1     Depreciation                                                          11400
        2     Interest                                                              12262
        3     Rent                                                                  12000
        4     Salaries & Wages              @      40%                              45120
        5     Other Expenses incl. Utilities @     40%                              19200
                            Total                                                   99982

11. PROFIT ANALYSIS & RATIOS

        1     Net Profit                                                   Rs.       63538
        2     Percentage of Profit on Sales                                             3%
        3     Percentage of Return on Investment                                       40%
        4     Break Even Point                                                         61%

				
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posted:11/22/2011
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