ESSENCE EXTRACTION FROM CURRY LEAVES
Introduction
This business idea is for essence extraction from curry leaves. Essence adds
flavor and taste to food. For one to enter the market, it is recommended that
s/he targets supplying to supermarket chains, grocery/retail shops and
restaurants. The business idea aims at production of 46,800 bottles of essence annually.
The revenue potential is estimated at US $ 400 annually. The total capital
investment for the project is US $ 4,000.
Plant Capacity
The profiled plant has a minimum capacity of 150 vials per day and this is an
output of a single 8-hour work shift.
Technology and Production process
Essence is extracted from the curry leaves with the essence extractor or
distillation set then the liquid is filled in bottles and sealed. The room
should be moist to conserve the fresh curry leaves.
Market Analysis
Essence adds flavor and taste to food thus there is high demand in Catering
industry and Homesteads. There are no players on the
market so far in Uganda.
Scale of Investment
1. Capital Investment Requirements in US$
|
Capital Item |
Units |
Qty |
Unit Cost |
Amount |
|
Distillation Set |
No |
1 |
1000 |
1,000 |
|
Working bench |
No |
10 |
300 |
3,000 |
|
Total |
4,000 |
2. Production and Operating Costs
|
Cost Item |
Units |
Unit |
Qty |
Prod |
Prod |
Prod |
|
Direct costs: |
||||||
|
Fresh curry leaves |
kgs |
1.5 |
1,000 |
1,500 |
39,000 |
468,000 |
|
Packaging |
Pcs |
0.05 |
100 |
5 |
130 |
1,560 |
|
Subtotal |
39,130 |
469,560 |
||||
|
General costs (Overheads) |
||||||
|
Labour |
300 |
3,600 |
||||
|
Utilities |
400 |
4,800 |
||||
|
Selling and Distribution |
100 |
1,200 |
||||
|
Administrative expenses |
100 |
1,200 |
||||
|
Shelter |
100 |
1,200 |
||||
|
Depreciation (Asset write off) Expenses |
83 |
1,000 |
||||
|
Sub-total |
1,083 |
1,000 |
||||
|
Total Operating Costs |
40,213 |
470,560 |
Production is assumed for 312 days per year. Depreciation
assumes 4 year life of assets written off at 25% per year for all
assets. A production Month is assumed to have 26 days.
3. Project product Costs and Price
Structure in US $
|
Item |
Qty |
Qty/yr |
Unit |
Prod |
Unit |
Total |
|
Essence |
150 |
46,800 |
10 |
470,560 |
12 |
561,600 |
4. Profitability Analysis Table in US$
|
Profitability Item |
Per |
Per |
Per |
|
Revenue |
1,800 |
46,800 |
561,600 |
|
Less: Production and Operating Costs |
1,508 |
39,213 |
470,560 |
|
Profit |
292 |
7,587 |
91,040 |