1 1.

PEANUT BUTTER Introduction

Peanuts have considerable nutrients and are consumed in different forms all over the world since long. Peanut butter is one such product consumed in large quantities especially in western countries since many years. It is not very popular in India and the domestic market is dominated by milk butter. Hence, the promoters must target growing export market and should be financially sound. The technology is available indigenously and it is advisable to engage a technical consultant to ensure quality. Peanuts are rich in unsaturated fats and other nutrient that may improve lucose and insulin

homeostasis. It also helps in reducing diabetes. It can serve as substitute for red or processed meats. It is very much popular in western countries. !mericans eat almost " pounds of peanuts and peanut butter per capita. Thus, there is much scope for export from India. 1.2 Objective

The primary ob#ective of the model report is to facilitate the entrepreneurs in understanding the importance of setting up unit of peanut butter. This model report will serve as guidance to the entrepreneurs on starting up such a new pro#ect and basic technical knowledge for setting up such a facility. 1.3 Raw Material Availabilit

The ma#or districts in $P where groundnut is grown are %hivpuri, &hhindwara, Tikamgarh, 'arwani, (habua, )hargone, 'etul, *atia, %eoni and *har. The all+important raw material will be good quality groundnuts in shell. $P has good production of groundnut in the country and it ranks seventh in the country with ,.-./ of the total production. Thus, availability would not be a problem. 'ut the promoters should always be in touch with the market and should buy directly from the farmers. Indian peanuts are popular all over the world with large exports every year. 'ut unfortunately, our market share is primarily confined to raw peanuts and value+added products like blanched 0 roasted peanuts and peanut butter has very negligible contribution.

Project Pro!ile" # MP A$ro"

%lobal A$ri& "te' Pvt. (td. )our Partner in A$ri#bu"ine""

1.*

Mar+et O,,ortunitie"

Indian peanuts are popular all over the world with large exports every year. 'ut unfortunately, our market share is primarily confined to raw peanuts and value+added products like blanched 0 roasted peanuts or peanut butter have very negligible contribution. &onsumption of peanut butter is yet to pick up in the country and the pro#ect must concentrate on foreign buyers. Peanut butter is very popular in the 1%!, the 1), Holland, !ustralia, 2ew 3ealand, %outh !frica, %outh 4ast !sian and ulf countries. These are all very large and growing markets and can be tapped as ma#ority of them import substantial quantity. There must be very strict quality control. !round .5/ of sale has to be by way of exports and the promoters may like to have registration as an 4xport 6riented 1nit 74618. Though India is world9s largest producer of peanuts, however, manufacturing of peanut butter is not a significant activity. There may be one or two units in India which manufacture peanut butter on medium scale. 2o large scale unit is still established in the country. The two ma#or hurdles are -8 peanut butter is not accepted product on mass basis in India because of its nutty flavour and, :8 huge capital investment required in setting up the unit. However, in view of liberali;ation in industrial policy of India, it is now right time to set up such units to eat lucrative export revenue. <ooking to growing health consciousness for low calorie and high protein food, the consumption and uses of peanut butter is bound to increase in the coming decade. 1.1.5.1 Project de"cri,tion Applications

Peanut butter is an ideal substitute for milk butter. It is a low calorie, high protein product. &ompared to milk butter, its price is very competitive. 'ut it has not yet become popular in our country and is rarely used by individual consumers. Peanut butter is most commonly used in sandwiches and as a spread. It is widely used in bakeries and confectioneries. 6ther uses are in cookies, frosting, cakes, salads, salad dressing, cupcakes, pies, stuffed celery, muffins, biscuits, apples, soup, peanut butter rolls, brownies, vegetable sauces, corn bread, meat loaf, boiled custard, sweet potatoes etc. It is also used in ice+cream and in chocolates. It is also used as table butter in 1%! and other western countries as being low in calories compared to butter milk.

Project Pro!ile" # MP A$ro"

%lobal A$ri& "te' Pvt. (td. )our Partner in A$ri#bu"ine""

1.5.2

Critical factors for success and achieving better quality

=ariety and quality of whole peanuts play important role in producing peanut butter of superior quality. 6perations such as blanching, roasting and high+ pressure pressing of peanuts have predominant effects on producing peanut butter of better quality and consistency Proportion and quality of other ingredients added in the peanut butter also contribute making butter for better taste and aroma. It is necessary to produce peanut butter strictly confirming to the standards as per international specifications and consumer demand. >ight selection of technology and equipments play key role in overall success of the pro#ect. It is necessary to either having a tie up or buy back arrangement before venturing into this pro#ect.

1.5.3

Capacity of the Project

The rated capacity for the peanut processing unit is -,?5 $T per annum. 1.5.4 anufacturing process

It is possible to buy raw peanuts instead of shelled peanuts or peanut pods. 'ut it is advisable to install groundnut shelling plant to ensure quality of the all+important input which determines the ultimate quality of butter. The manufacturing process is briefly described hereunder. 1.. %roundnut Pre#cleanin$ / &0ellin$

ood quality groundnut pods are sorted out and de+stoned before shelling them in openers. 1.1 Peanut %radin$

%helled peanuts are graded according to si;es to ensure only big or bold peanuts are taken up for process. 1.2 Peanut Roa"tin$ / Blanc0in$

This is a critical stage. >oasting is done at around -@56 & for A5+@5 minutes depending upon the moisture contents. >oasting reduces water contents to around -/ which increases the shelf life of peanuts and helps develop flavor. !fter roasting, peanuts are cooled and then blanched 7removal of outer red skin8. !fter blanching each peanut is inspected to remove discolored 7grey or black8 nuts.

Project Pro!ile" # MP A$ro"

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1.3

%rindin$

Peanuts are then ground in peanut butter mill in two stages to produce fine and creamy butter. The outlet temperature is around @?+"?6&. !ll ingredients like salt, sugar and stabili;ers are added during this process. 1.14 5e#aeration !ir is incorporated into peanut butter during milling and subsequently it is removed in a vacuum. 1.11 6oolin$ ! scraped surface heat exchanger is used for cooling. The outlet temperature depends upon the type of stabiliser used. 1.12 7illin$ and Pac+in$ Peanut butter is filled in Pet (ars or metal drums as per the instructions of the buyer. Immediately after filling, the #ars are vibrated to remove any remaining air bubbles. !fter keeping #ars or drums for around ,?+A5 hours at around :56&, the peanut butter sets completely and can be dispatched. >ecovery from groundnut shells or pods is ??/ HP% groundnuts, ::/ husk and balance :,/ are splits or kapchi. >oasting of peanuts and removal of discoloured peanuts, results in further wasteBloss of ?/. The process flow chart is as underC
Pre cleanin$ and "0ellin$ o! %roundnut"

%radin$

Roa"tin$ and Blanc0in$

%rindin$

6oolin$

Pac+in$

Project Pro!ile" # MP A$ro"

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1.13 Project co',onent and co"t $a#or components of the pro#ects and their costs are described in the table hereunderC
PARTI6U(AR& (AN5 / BUI(5IN% <and (and 5evelo,'ent <and !rea Buildin$ Production Bloc+ %torage of >aw $aterial !dministrative block *ecorticating 1nit Processing 1nit Packageing 1nit %torage Dor Dinished Product &ontingencies P(ANT / MA6:INER) Plant 0 $achinery &ontingencies MI&6E((ANEOU& 7I;E5 A&&ET& Durniture and Dixture =ehicles+*elivery <&= Feighing %cale * %et 6thers &ontingencies PRE#OPERATI<E E;PEN&E& 4stablishment Preoperative Interest %ecurity *eposits TOTA( Unit %q$ 8t -,555 -,555 %q$ %q$ %q$ %q$ %q$ %q$ <% <% 2o 2o 2o <% :A5 -55 ?5 -55 ?5 ?5 -5/ :5/ :5/ 6o"t9unit :?5.55 ?55.55 ?,555.55 ?,555.55 ?,555.55 ?,555.55 ?,555.55 ?,555.55 ??,555,555 "55,555 @55,555 ?55,555 .55,555 -,555,555 -,..5,555 :,5"5,@55 -,:55,555 Total 33.3:.?5 ?.55 -:.55 ?.55 :.?5 ?.55 :.?5 :.?5 :.E? ..4.44 ??5.55 --5.55 *3.24 ".55 @.55 ?.55 ..55 -5.55 ".:5 -1.-1 -...5 :5."-:.55 13*...

1.1* Plant and Mac0iner The main plant and machinery equipments required for this pro#ect are %torage silos for whole groundnuts, pneumatic conveying system, nut huller and cleaner, destoner, sorting cylinders, vibrating sieve, steam roaster blanching unit, electronic colour sorter, hydraulic press, colloid mill, triple roller refining mill, material handling equipment, butter pasteuri;er, automatic packaging machine. The total ost assumed is around >s. @@5 lakhs. 1.1- Buildin$ The building development and construction will cost around >s. ,:.A? lakhs. 1.1. Mi"cellaneou" A""et" ! provision of >s. A,.:: lakhs would take care of other items like furniture and fixtures, storage facilities, packing tables etc.

Project Pro!ile" # MP A$ro"

%lobal A$ri& "te' Pvt. (td. )our Partner in A$ri#bu"ine""

1.11 Preli'inar / Pre#o,erative E=,en"e" There will be many pre+production expenses like registration, administrative and traveling charges, interest during implementation, trial run expenses etc. for which a provision of >s. ?-.?- is made. 1.12 >or+in$ 6a,ital A""e""'ent
ITEM& %T6&) 6D >!F $!T4>I!< 0 P!&)I2 $!T4>I!< %12*>G *4'T6>% TOTA( MAR%IN MPB7 INTERE&T ON >6 )ear 1 ,,.5@ -5-.:? 13*.31 ,,.?. -55."A --.5. )ear 3 ??.--@.."? 223.2. ??.E@ -@"..E -..A" )ear ??.--@.."? 223.2. ??.E@ -@"..E -..A"

1.13 Mean" o! 7inance

E8UIT) 6APITA( MO7PI &UB&I5) TERM (OAN DI2!2!2&I!< I2%TIT1TI62% -Payable half yearly Installments TOTA( :?/ -5 ?5.55 -5.55/ A-.A5 A,.E@/ @.5A/ ?5.55/ -55/ 3.*.12 -4.44 *1*.12 222.23

1.24 6a"0 !low "tate'ent

PARTI6U(AR& &OUR6E& O7 7UN5& 4H1ITG &!PIT!< %1'%I*G 24T P>6DIT 7I2T4>4%T !**4* '!&)8 *4P>4&I!TI62 P>4<I$I2!>G 4IP.FB6 I2&>4!%4 I2 T4>$ <6!2 I2&>4!%4 I2 '!2) '6>>6FI2 %+F& TOTA( )ear 1 + A5.", ":.?5 ".,@ + -55."A 221.32 )ear 3 + -@E.-. ":.?5 ".,@ + :?.-. 21*.22 )ear + -@A.E" ":.?5 ".,@ + + 2**.2* )ear 1 + -@A.", ":.?5 ".,@ + + 2**.-3

1.21 Projected balance "0eet

PARTI6U(AR& (IABI(ITIE& 4H1ITG &!PIT!< >4%4>=4% 0 %1>P<1% T4>$ <6!2 '!2) '6>>6FI2 %+F& TOTA( )ear 1 ,@A.-: ,..:, ,":.": 144.1* 21-.24 )ear 3 ,@A.-: :,@.A, :5".-: 1.1.23 31-.-. )ear ,@A.-: ?5-..A A-.?: 1.1.23 1?41-.31 )ear 1 ,@A.-: "E,..: + -@"..E 1?32-.23

Project Pro!ile" # MP A$ro"

%lobal A$ri& "te' Pvt. (td. )our Partner in A$ri#bu"ine""

1.22 Projected ,ro!it and lo"" account

PARTI6U(AR& IN6OME E;PEN5ITURE <ARIAB(E 7I;E5 %RO&& PRO7IT PRO7IT BE7ORE TA; RETAINE5 PRO7IT )ear 1 @5".?5 A.@.E,?E.@5 -:".,-:5.?E 7--.""8 7--.""8 )ear 3 -,5-:.?5 "@,.A@ ?.A.:: -"E.:A :AE.5A -:,."E -:,."E )ear -,5-:.?5 "@".@@ ?.-.A@ -.@.:5 :AA..A -,@.-A -,@.-A )ear 1 -,5-:.?5 "@".E?".."-.E.:5 :AA.?E -A@.:@ -A@.:@

1.23 @e Indicator"
24T P>4%42T =!<14 at current Inflation 7>s.in lakhs8 I2T4>2!< >!T4 6D >4T1>2 / !=4>! 4 *%&> '>4!) 4=42 P6I2T / P!G '!&) P4>I6* 7 G4!>%8 323.-. 21..2.23 ...22 *..2

1.2* Man,ower ReAuire'ent

PARTI6U(AR& &UPER<I&OR) &TA77 424>!< $!2! 4> !&&612T!2T 0 !*$I2IT>!TI=4 6DDI&4> $!>)4TI2 %T!DD >OR@ER& $!2! I2 P>6*1&TI62 $!2! 4> H& %1P4>=I%6>% $!I2T %1P4>=I%6>% %)I<<4* F6>)4>% 12%)I<<4* F6>)4>% NO. : , A : @ -5

Project Pro!ile" # MP A$ro"

%lobal A$ri& "te' Pvt. (td. )our Partner in A$ri#bu"ine""

1.2- A""u',tion"
Project and 7inancial" &ontingencies on 'uilding &ontingencies on 4quipment Term <oan >ate of Interest on Term <oan %ubsidy &onsidered %ub#ect to ceiling 4xpected time of Installation $oratorium 6APA6IT) >ated &apacity Per !nnum .?/ of Installed capacity 2umber of 6perational *ays *!G% Forking Hours Per day Hrs 6APA6IT) UTI(IBATION Gear I Gear II Gear III &A(E& PRI6E F % Price OT:ER E;PEN&E &ommission $arketing 4xpenses PO>ER &onnected <oad HP 5EPRI6IATION A& PER 6OMPAN)C& A6T '1I<*I2 P<!2T 0 $!&HI24>G $I%&. DII4* !%%4T% <!2* 0 %IT4 *4=4<6P$42T MAINTENAN6E '1I<*I2 P<!2T 0 $!&HI24>G $I%&. DII4* !%%4T% <!2* 0 %IT4 *4=4<6P$42T -5/ :5/ ?5/ -5/ :?/ -5 @ -,?5 :"5 :5 @5/ .?/ -55/ "?555 -5.5/ :.?/ ,55 ,.,A/ -5.,A/ ".5"/ -.@,/ -.55/ ,.55/ :.55/ -.55/

$onths $onths TP!

1.25.1 !ources of technology %hree#i 2ut &o, (am )andorna ,@5 A5?, Parmar 4ngg. &o, (asdan, u#arat (ohn Dowler 0 &o <td, 'angalore Dorsberg !gritech 7I8 <td, $akarpura, =adodara 'rimco 4ngg. Forks, $:AB-, %treet 2o E, !nand Parbat Indl. !rea, 2ew *elhi --5 55?, PhoneC :?":@,A", @-". DaxC::-A?5A5 6saw !gro Inds. Pvt. <td., P6 'ag 2o ?, 6saw &omplex, (agadbri >oad, !mbala &antonment -,, 55-. PhoneC :@EE-@", ,?A, ?A", Dax 2o :@EE5-. Dowler Festrup India 7P8 <td., Plot 2o :?5, 'ommasandra Indl. 4st, Ph+,, 'angalore ?@: -?.. PhC :".,:EE, DaxC :".,:EE5 Harvest %ortmac %hosha Pvt <td, 2utech =ikas, 2o.@, -st !venue, -55 Deet >oad, !shoknagar, &hennai @55 5.,. PhC :A"-"?.., DaxC :A"-"@.. D$& Inc. 1%! F.&. &antrull &o. J 1%! 1niversal $achinery &orpo. Inc. + 1%!

T0e actual co"t o! ,roject" 'a deviate on c0an$e o! an o! t0e a""u',tion".

Project Pro!ile" # MP A$ro"

%lobal A$ri& "te' Pvt. (td. )our Partner in A$ri#bu"ine""