.

“NATURAL” IS WHERE WE
BEGIN
 What are Dyes ?
Dyes are the colouring material that colour
commodities of our day to day use. Hardly there
is any industry where dyes are not used
commercially. From Plastic toys for children to
that jazzy t-shirt of yours, every where there is
application of dyes.
 Different types of
dyes
12. Macromolecular Dyes
1. Acid Dyes
2. Natural Dyes 13. Metallized Dyes
3. Basic (Cationic) Dyes 14. Napthol Dyes
4. Synthetic Dyes 15. Premetallized Dyes
5. Food Dyes
16. Gel Dyeing
6. Disperse Dyes
7. Sulfur Dyes 17. Developed Dyes
8. Pigment Dyes 18. Azo Dyes
9. Mordant Dyes
19. Aniline Dyes
10. Vat Dyes
11. Reactive Dyes 20. Anthraquinone Dyes
 Food Dyes
⮚Food colouring, or colour additive, is any dye, pigment or
substance that imparts colour when it is added
to food or drink.
⮚They come in many forms consisting of
liquids, powders, gels , and pastes.
⮚Food colouring is used both in commercial food production
and in domestic cooking.
⮚Food colorants are also used in a variety of non-food
applications including cosmetics, pharmaceuticals, home craft
projects, and medical devices.
 Types Of Dyes

Natural Dyes

Synthetic Dyes
Natural vs synthetic
1. Natural colours are those that are
extracted from natural sources like
plants; from the seed, fruit or
vegetable and from minerals,
animals, and algae.
2. Red Blue and Violet are derived
from beetroot, raspberries, red
cabbage
3. Green comes from the chlorophyll
in leaves
4. Yellow-orange and red is derived
from apricots, carrots, and tomatoes
1. Synthetic colours are produced by
chemical reactions.
2. Permitted synthetic colours are safe
to use in food and manufacturers use
them because they are less expensive
and provide uniform and bright
colours.
3. They can also be blended to provide
a number of secondary colours.
However, the use of synthetic colours
is declining because some of them
have harmful effects on the health and
can cause cancer, nervous disorders,
toxicity or heart disease.
 Why Natural Food Dyes

i. Raw material is available in

plenty
ii. Cause no harm to the human
skin
iii. Possess a wide range of
antimicrobial and medicinal
properties
iv. No pollution is caused during
the manufacturing process
v. Sustainable as they are
renewable and biodegradable
vi. Manual production process
generates more employment
and saves on energy
 Executive Summary

KS dyes will be a private limited company.

Our Aim is to produce 6 types of natural food dyes.
Our budget is 1.7 cr with headquarters and manufacturing plant in
Gujarat .
 OPPORTUNITY

• More consumers are demanding companies to use natural colouring, claiming

certain synthetic food dyes can cause major issues, especially in children.
• More and more products claiming “No Artificial Colours.” are coming in the
market.
• Movement to go “natural” is very much real and upon us.
• The pressure to reformulate is beginning to hit all categories.
DESCRIPTION OF COMPANY
Headquarters: Gujarat
Manufacturing plant: Gujarat
Manufacturing process used: Percolation and
Super Critical Extraction
Land Required: 1500 sq. mt
Colors produced: 6
Raw materials: Oranges, Tomatoes, Berries,
Plum, Marigold, Turmeric, Spinach etc.
Machinery Required: Glass lined reactors,
Pulverizer, Crystallizer, Percolator etc.
Requirement of money: 170 Lakhs
WHY GUJARAT ?
1. Gujarat produced 17559 MT of Marigold Flowers from 2187 hectare
of cultivated area in the year 2004-2005. Marigold cultivation is
increasing in the state as high value floriculture activities along with
other agriculture activities.
2. Annatto seeds are cultivated in Gujarat presently by a private sector
Biot-tech company under buy back arrangement by supplying tissue
culture plants of Annatto-Bixa.

1. Gujarat is the leading state manufacturing synthetic color but due to

increasing stringent environment laws and control implemented by
state pollution control authorities these units are suffering. They have
an alternate to switch over and diversify in natural colour extraction
and manufacturing as it has a huge potential.
1. Gujarat is having well developed dairy industry manufacturing
butter, cheese, flavoured milk and lassi, shrikhand, yogurt and ice
cream where both these natural colours will find ready market.

1. Large pool of Chemical, Pharma, cosmetics and textile units which can
generate demand for Natural colours in India. The state having rich
chemical expertise with experience also has good market access over
other states.
2. Availability of canal irrigation will lead to development of value
added horticulture crops like Marigold and Annatto, and such
processing unit will provide ready market for growers in Gujarat.
MANUFACTURING
Process machinery
 Technology/Process
▣ There are two methods for extracting natural
colours. One is the conventional method that is
batch type percolation which uses suitable organic
solvent for extraction of the colouring material
from natural materials.
▣ While Super Critical Extraction (SCE) is the
advance technology used for extracting natural
colours in the purest form. In India the technology
for SCE has been developed by Chemical
Engineering Department IIT- Mumbai. Imported
technology can be sourced from Germany and
Austria.
 Super Critical Extraction
▣ SCFE is a two step process, which uses a
dense gas as solvent usually carbon
dioxide above its critical temperature
(31°C) and critical pressure (74 bar) for
extraction. The natural product is
powdered and charged into the extractor.
Carbon dioxide is fed to the extractor
through a high‐pressure pump (100‐350
bar). The extract charged carbon dioxide is
sent to a separator (60‐120 bar) via a
pressure reduction value. At reduced
temperature and pressure conditions the
extract precipitates out in the separator.
The extract free carbon dioxide stream is
introduced several times for effective
extraction of all the dye material from the
natural product.
Process
 Why SCE ?

▣ Why SCE is superior over the traditional

solvent extraction of natural dyes, Firstly it
uses a clean, safe, inexpensive, non flammable,
nontoxic, environmentally friendly, non
polluting solvent‐carbon dioxide (CO2).
Secondly, the energy costs associated with SCE
are lower than the conventional techniques.
The proposed project would require the following
as basic and necessary plant and machinery

❑ 1 Glass lined reactors (2 )

❑ Pulverizer 2
❑ Crystallizer 2
❑ Centrifuge 3
❑ Filters 3
❑ Dryers 3
❑ Granulator 2
❑ De-mineralised water plant 1
❑ Percolator 1
❑ Chilled water plant 1
❑ Cooling Tower 1
❑ 1Homogenisers 2
❑ Boiler 1
❑ DG set for Stand by power 1
RAW MATERIALS
Beet root

Turmeri
c Rasberries

Oranges
Tomatoes
Spinach
1. Gujarat produced 17559 MT of Marigold Flowers from 2187 hectare of cultivated
area in the year 2004 - 2005.
2. Marigold cultivation is increasing in the state as high value floriculture.
3. Annatto seeds are cultivated in Gujarat presently by a private sector Biot-tech
company under buy back arrangement by supplying tissue culture plants of Annatto
- Bixa. Availability of canal irrigation will lead to development of value added
horticulture crops like Marigold and Annatto, and such processing unit will provide
ready market for growers in Gujarat. Recently cultivation of Annatto seed has
started in several parts of Gujarat that is basically done through contract farming.
The adjoining states of Rajasthan (mari - gold flowers) , Madhya Pradesh (Annatto
seeds) and Maharashtra would also help in getting the raw material in required
quantum.
4. Gujarat’s marigold production is shown an escalating trend since 2002-03 to 2005 - 06
growing at an average CAGR of 54% for the last 4 years.
5. The extraction of natural food colours depends on the colouring Content in the raw
material. Different processes are used to extract the colouring content from raw
material that may vary from 4 to 7%. Suggested.
6. Also other raw materials can be taken from the near by states such Rajasthan,
Maharashtra etc.
 CLEARANCES REQUIRED
▣ Filling of Industrial Entrepreneur’s
Memorandum (IEM) with the Secretariat of
Industrial Approvals
▣ (SIA), Department of Industrial Development,
Ministry of Industry, New Delhi
▣ Registration with Ministry of Food Processing
Industries (MOFPI), through state nodal agency
▣ GAIC, to avail benefits of scheme for food
processing industry as the proposed unit would
be manufacturing food ingredients for domestic
and export market.
▣
 QUALITY CHECK
▣ FSSAI regulations on food colours
▣ The FSSAI regulations for food colouring are covered under the category ‘Colouring
Matter’ in the Food Safety and Standards (Food Products Standards and Food
Additives) Regulations, 2011. The regulations say that no colouring matter may be
added to food unless permitted in these regulations. The colours specified in these
regulations, when used in the preparation of any article of food, shall be pure and
free from any harmful impurities.
▣ FSSAI permits the use of the following whether derived naturally or manufactured
artificially.
▣ Carotene & Carotenoids including Beta-carotene, Beta-apo 8′- carotenal, Methyl ester
of Beta-apo 8′ carotenoic acid, Ethyl ester of Beta-apo 8′ carotenoic acid,
Canthaxanthin
▣ Chlorophyll;
▣ Riboflavin (Lactoflavin).
▣ Caramel
▣ Annatto
▣ Saffron
▣ Curcumin or turmeric
▣ The declaration about the food colours on the label shall be in accordance with the
FSS (Packaging & Labelling) Regulations, 2011.
 MARKET POTENTIAL
❖The Food Processing Industry is estimated to be worth around USD 67
billion and expected to increase to USD 175 billion by 2025.
❖The Processed Food sector has a potential of attracting USD 33 billion
investment About 6% of the total Indian produce is processed.
❖There are over 25,000 registered units in the food sector with
investments of Rs 840 billion.
❖The natural food colour industry market is growing at 10% - 15%
annually.
❖The rationale for growth is increasing awareness among the developed
countries like USA, UK, Germany, Europe, Japan etc. about the harmful
effects and consequences of using synthetic colour.
❖Since the product is expensive, it is consumed in countries having high
income strata .
❖The reason for accelerating demand of the natural food colours in
international market is the growing awareness of environmental hazards
of synthetic colours and harmful impact of chemicals used for
manufacturing them.
❖Food industry is the major segment attracting investors.
❖Natural colour market products promise a good and vast market for
dyes.
❖Due to foreseen pollution problems and environmental erosions,
synthetic dyes tend to be soon out of use at least in food preparations
which will further give thrust to Products like Annatto dyes the world
market potential for food colour is expected to increase to 9000 MT by the
year 2020.
❖Global Natural food colour market has touched to US $ 1 billion.
❖Encouragement for using Natural food colours in novel products like
infant toys and crayons, Organic textile printing, handmade paper etc.
❖India has a major agribusiness sector which has achieved remarkable
successes over the last three and a half decades.
❖Unprocessed foods are susceptible to spoilage by biochemical
processes, microbial attack and infestation.
MARKETING
Competitive scenario

•Neelikon.

•Sun food tech.

•Phinix international.

•Arjuna Natural.
 SWOT
ANALYSIS
 STRENGTHS
1.Round the year availability of raw
materials.
2.Vast network of manufacturing facilities all
over the country.
3.Vast Domestic market.
4.Availability of skilled manpower.
5. Awareness about health is at an all time
high right now.
WEAKNESSES
1. Low availability of required reliable
machinery.
2. Higher costs than synthetic food dyes.
3. Requires vast areas of land for
production.
4. Less shelf life of natural food dyes.

OPPORTUNITIES
1. Increasing awareness about harmful THREATS
effects of synthetic colours.
1. High global competition.
2. Strict government regulations in
2. High manufacturing costs.
manufacturing of synthetic dyes has
shifted the focus on natural food dyes. 3. Limitations of colours that can be
manufactured naturally.
3. Growing bed for food products that
are packed and frozen.
 Manpower Required

S.No Designation Salary Salary No. No. No. No. No.

1 Production 18000 36000 2 2 2 3 3

manager

2 Operators 12000 60000 5 5 5 7 7

3 Helper 10000 100000 10 10 10 12 12

4 Admin 15000 30000 2 2 2 2 2

manager
 Implementation Schedule
S.No Activity Time Required (in months)

1 Acquisition of premises 2.0

2 Construction (if applicable) 2.5

3 Procurement & installation of Plant 2.5

& Machinery

4 Arrangement of Finance 1.0

5 Recruitment of required manpower 1.0

Total time required 9.0

 Financial Plan
S.No Particulars Rs. (in lakhs)
1 Land 20.0
2 Building 25.0
3 Plant & Machinery 50.0
4 Furniture, other Misc. Equipments 5.0

5 Other Assets including 7.20

Preliminary /
Pre-operative expenses
6 Margin for Working Capital 60.0

7 Marketing 3.0

Total 170.20
 Means of Finance

1.Banks: HDFC,ICICI, AXIS

2.Investors: SIDBI Venture Capital Limited
3.Govt Schemes: MSME Business Loans in 59
Minutes, MUDRA Loans
4. SELF FINANCING
 Application of Dyes
▣ A wide gamut of Orange Red Food Colour: Their precise applications make these a
preferred market choice. Moreover, these are made using top grade inputs and
advanced machinery so as to maintain their top quality standards.
▣ Fresh & pure without additives have longer shelf life derived from fruits like
strawberries, oranges and apples.
▣ Food Colours, Liquid Food Colours, Synthetic Flavouring Essence, Flavour
Emulsions, Sugar Free Products, Syrups etc. Are the major food colours. The
project envisions setting up of a Natural food colours extraction unit which will
cater to domestic as well as global demand.
▣ The manufacturing facilities proposed in this unit will be multipurpose and hence
will be processing more than one raw material.
▣ Annatto and Marigold being non-toxic in nature are widely acceptable food
colours for food products that include dairy products like butter, ghee, cheese, ice
cream and margarine as well as some oil and bakery products. They are also used
in preparation of cosmetic accessories, pharmaceutical s, crayons, textiles, floor
wax, shoe polishes etc.
PRODUCTS
COLOUR E-NUMBER PIGMENT

RED/BLUE E163 ANTHOCYANINS

RED/PINK E162 BETANIN

RED E120 CARMINIC ACID

GREEN E140&E141 CHLOROPHYLLS

YELLOW/ORANGE E160a-E160g CAROTENOIDS

YELLOW E100 CURCUMIN

YELLOW E101 RIBOFLAVIN

BLACK E153 CARBON BLACK

 Exit strategy

Company we are starting is because of high

demand of natural food dyes in the market and it
will grow in coming years, but incase if we don’t
have profit in first two years then will merge our
company with a bakery company as most Food
dyes are required in bakery products