Project Profile

PROJECT PROFILE

Project:

Ginger and Garlic processing

Capacity:

75 MT/Annum

Project Cost:

INR 18.69 lakhs

Exported oriented:

Targeted at domestic markets

Candidate industry Ginger and Garlic processing

Project description

Project Profile

Relevance of the industry in Karnataka

Possible locations

Manufacturing process

Quality related aspects

Indicative project financials

Project cost
Means of finance
Project feasibility

Candidate industry Ginger and Garlic processing

Description

Ginger & garlic are important commercial crops cultivated throughout the
country with major production in several Indian states including Karnataka.
Garlic is mainly used as a condiment in food preparations and is also used as
carminative and gastric stimulant in many medicinal preparations. Processing of
ginger is undertaken to dehydrate it and for preparing ginger candy. Ginger &

Project Profile

garlic-based products have wide applications in food processing as well as many

other industries.
Relevance of the industry in

Karnataka is one of the leading producers of ginger and garlic (apart from the

Karnataka

neighbouring state, Kerala). Karnataka contributes to more than 25% of the

ginger produced in India. Being a horticultural state, Karnataka offers excellent
opportunities for food processing industries. The south western districts which
are well connected to Bangalore and Mysore are best suited to set up garlic and
ginger processing units. One of the leading spice processing company is based
out of Bangalore .

Major districts suitable for the

industry

1. Almost all districts in Karnataka

Project Profile: Candidate industry Ginger and Garlic processing

Manufacturing Process

Project Profile

In case of dehydration of garlic, cloves are separated manually and then

dehydration is done in a drier at about 55-600C temperature. As regards
ginger, fresh ginger is soaked in water and washed and then outer skin is

peeled off in a barrel drum. Drying is done in the electrically-heated

thermostatic-controlled drier in the range of 55-600C. Ginger for producing
candy has to be rich in flavour and juice and fibreless and tender. After
washing and peeling, ginger is cut in required sizes and boiled with small
quantity of citric acid for about an hour. Then, the mixture is boiled with 30%
sugar solution for 15 minutes and kept overnight. Same operation is
repeated everyday till the sugar content is 60 brix and then small quantity of
citric acid is added and the solution is boiled and kept till sugar penetrates in
ginger. Finally, it is boiled for about 5 minutes and the sugar solution is
drained out and pieces of ginger are rolled in ground sugar, dried and
packed. With regard to Garlic, skin is peeled and then the same is dried. To
get the right mixture of ginger and garlic, correct quantity to mixed keeping
in mind the market demand and local taste.

Process Flowchart

Soaking and Washing of

Ginger

Peeling of outer skin

Clean the Garlic and paste

Drying
Quality and compliance
Compliance should be with:
1. Prevention of Food Adulterations Acts and Rules, 1954
2. Fruit Products Order, 1955

Packing

Project Profile: Candidate industry Ginger and Garlic processing

Project Profile

Cost of the Project

Amount (Rs in Lakhs)

Land and Building

6.30

Machinery

7.00

Miscellaneous Assets

0.84

Preliminary and preoperative expenses

1.12

Contingencies (10% of project cost)

1.33

Working capital

2.10

Total cost

Means of Finance
Promoters contribution
Term loan from bank
Debt equity ratio

18.69

Amount (Rs in Lakhs)

5.46
13.23
2.42:1

Project Profile: Candidate industry Ginger and Garlic processing

Assumptions
Sale price per Kg

Rs 100 per Kg

Capacity of the unit

75 tonnes per annum

Project Profile

Projected Profitability

Amount (Rs in Lakhs)

Revenue at 65% utilization

48.75

Cost of production including loan payment

38.94

Profit Before Tax

9.81

Income tax @ 20%

1.96

Profit After Tax

7.85

IRR calculation

Year 1

Year 2

Year 3

Total

Cash Accruals (PAT)

7.85

9.30

10.96

28.11

Discount factor @ 22%

6.44

6.25

6.04

18.72

IRR = 22%

Project Profile: Candidate industry Ginger and Garlic processing

Project Profile

Reference:
1.

Ministry of Food Processing Industries, Government of India

2.

Ministry of Micro, Small and Medium Enterprises , Government of India

3.

National Bank for Agriculture and Rural Development

4.

Central Food Technological Research Institute, Mysore

5.

National Horticulture Board

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