Yeast: A Crucial Ingredient in Food and Beverage New Startup
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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