SCENTED SUPARI PROCESSING

Introduction:
Supari is the dehydrated betel nut sliced for direct consumption. It is used as mouth fresher after
food. It is a typical Indian product popular with both young and old. Betel nuts are abundantly
found in the N.E. Region and are extensively used. Conversion of betel nut to supari confers
substantial value addition to the extent of 80% of the cost.
Market Potential:
The raw material for supari i.e. betel nut is abundantly available in the N.E. Region specially
Assam. The habit of chewing up supari with pan is popular practice in the region. The demand for
supari has never decreased. It is a labour intensive with low or no technology input hence a few
units can come up and shall be viable.
Plant capacity:
Production per day at rated capacity
Working days/year
Annual production

:
:
:

100 kg. scented suparti

300
30 Tons.

Process:
The major process steps are:
i)
Boiling of raw hut.
ii)
Open sun drying for 2 to 3 days.
iii)
Peeling off semi dried nut.
iv)
Further drying for 10 to 15 days.
v)
Slicing of dried supari.
vi)
Application of essence in required quantity.
vii)
Packing in pouches.
Machinery and Equipment:
i)
Karahi/ Pan
ii)
Slicer/Daos.
iii)
Bamboo Mat.
iv)
Bamboo Baskets.
v)
Plastic Sheets/Tarpaulins.
vi)
Accessories.

Total : Rs 50,000

Infrastructure:
The major infrastructural requirement are:
Covered Area
Power
Water

:
:
:

1000 sq.mt.
1 KW
500/day

Total Capital Requirement:

The total capital requirement including fixed capital and working capital is estimated at Rs
5,18,974 as follows. Of this, the project cost comprising fixed capital and margin money on
working capital is Rs 2,66,140.
A.

Fixed Capital:

(Rs)

Land
Building
Plant & Machinery
Miscellaneous fixed assets
Preliminary and pre-operative expenses
Total (A)

188

Own
50,000
50,000
20,000
10,000
1.30,000
=======

B.

Working Capital:
Raw materials & Packing material
Finished goods
Working expenses
Receivables

month
month
1 month
15 days
Total (B)

1,09,875
1,17,459
11,640
1,50,000
3,88,974
=======
5,18,974

Total (A)+(B)
Note: Working capital may be financed as:
Bank Finance
Margin Money

Rs 2,52,834
Rs 1,36,140
Rs 3,88,974
===========

Means of Finance:
Promoters contribution (35%)
Term Loan (65%)

Rs 93,149
Rs 1,72,991
Rs 2,66,140
==========

Operating Expenses:
The annual operating expenses are estimated at Rs. 25,62,543 as given below:
(Rupees)
1.
Raw materials
16,50,000
2.
2.
3.
5.
6.
6.
7.
9.

Packing materials
Utilities
Wages & Salaries
Other overheads
Selling expenses @ 5% on annual sales
Interest on term loan
Interest on Bank Finance for
Working Capital
Depreciation @10%
on m/c

2,47,500
7,680
1,32,000
12,000
1,50,000
20,759
31.604
12,000
25,63,543
=======

Total
Sales Realization:
Sl.No.
1..

Product
Supari
TOTAL

Qty.(MT)
30 MT

Rate (Rs)
10/-

Value (Rs)
30,00,000
30,00,000

Profitability :
Based on the sales realization of Rs 30,00,000 and
the
operating expenses of Rs.
25,63,543 as such the profit would be Rs 4,36,457 per year. This works out to a return on
investment of 84%. The plant will break even at 41% of the rated capacity.
Highlight:
The major highlights of the project are as follows:
Total capital requirement
:
Rs 5,18,974
Promoters contribution
:
Rs
93,194
Annual sales realization (70% cap.)
:
Rs 30,00,000
Annual operating expenses (70% cap.)
:
Rs 4,36,457
Annual profit (pre-tax)
:
Rs 4.36.457
Pre-tax Return on Sales
:
14.5%
Break Even Point
:
41%
No.of persons employed
:
10
SUGGESTED LOCATION :
Betal nut growing areas in Assam & other north eastern areas.
Suppliers of Machinery (Potter Wheel):
Local machinery suppliers in Guwahati.

189