Yeast is indispensable in both the food and beverage industries, particularly in baking and alcoholic beverage production. This report examines the feasibility and financial aspects of setting up a yeast manufacturing plant.
Market Potential
The growing demand for yeast, driven by the consistent growth of the food and beverage sectors, ensures a strong market.
Technical Feasibility
Raw Materials
- Molasses and Nutrients: Primary raw materials for yeast production.
- Fermentation: Fermenting molasses with nutrients to cultivate yeast.
- Separation and Drying: Separating and drying the yeast to obtain the final product.
- Packaging: Packaging the yeast for distribution.
Plant Layout and Machinery A typical plant layout includes:
- Fermentation Unit
- Separation and Drying Unit
- Packaging Unit
Financial Analysis
Total Project Cost
- Land and Site Development: ₹8 crore
- Plant and Machinery: ₹40 crore
- Installation and Erection: ₹8 crore
- Preliminary and Pre-operative Expenses: ₹8 crore
- Working Capital: ₹8 crore
- Total Estimated Cost: ₹72 crore
Revenue Generation Revenue from the sale of yeast is estimated based on market rates.
Cost of Production
- Raw Material Cost: ₹16 crore per annum
- Operating Expenses: ₹8 crore per annum
- Maintenance and Utilities: ₹4 crore per annum
Profitability Analysis
- Total Annual Revenue: ₹85 crore
- Annual Expenses: ₹28 crore
- Net Profit: ₹57 crore
- Rate of Return: 18%
- DSCR: 1.7
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