MAKING CURRY POWDER
Introduction
This business idea is for making curry powder. Curry powder is a mixture of
spices of widely varying composition. It adds taste to food and stimulates
secretion of gastric juices. Curry powder is an
item required in many household and thus has a good market potential both in
Urban and Rural areas. Supply to supermarket chains, grocery/retail shops,
restaurants and hotels are recommended for one to enter the market. The
business idea aims at production of 2,600 kgs of curry powder per month. The
revenue potential is estimated at $ 400 per year with a sales margin of 10%.
The total capital investment for the project is 1,900 dollars.
Plant Capacity
The profiled plant has a minimum capacity of 100 kgs of curry powder per day.
Production Process
The production process involves toasting the spices, mixing the various spices,
grinding the spices and packaging.
Market Analysis
This is an Agri-Product manufactured through the mixture of various food
spices. The demand for Curry powder is high in Uganda especially in Schools,
Catering Institutions, and Homesteads. There are many players in this industry
in Uganda, among which includes; Royco from Unilever (U) Ltd, KARIBU, KABISWA,
KAWOMERA, etc.
Scale of Investment
1. Capital Investment Requirements
|
Capital Item |
Units |
Qty |
Unit Cost |
Amount |
|
Spice Grinders |
No |
2 |
350 |
700 |
|
Sealing machine |
No |
2 |
250 |
500 |
|
Storage containers |
No |
2 |
350 |
700 |
|
Total |
1,900 |
2. Production and Operation costs
|
Cost Item |
Units |
Unit |
Qty |
Prod. |
Prod. |
Prod. |
|
Direct costs: |
||||||
|
Fenugreek |
Kgs |
15 |
3 |
45 |
1,170 |
14,040 |
|
Caraway |
Kgs |
12 |
3 |
36 |
936 |
11,232 |
|
Cinnamon |
Kgs |
15 |
5 |
75 |
1,950 |
23,400 |
|
Cumin |
Kgs |
15 |
8 |
120 |
3,120 |
37,440 |
|
Ground |
Kgs |
14 |
8 |
112 |
2,912 |
34,944 |
|
Turmeric |
Kgs |
8 |
15 |
120 |
3,120 |
37,440 |
|
Packaging |
Pieces |
0.2 |
100 |
20 |
520 |
6,240 |
|
Sub-total |
13728 |
164,736 |
||||
|
General costs (Overheads) |
||||||
|
Labour |
500 |
6,000 |
||||
|
Utilities |
500 |
6,000 |
||||
|
Selling and Distribution |
100 |
1,200 |
||||
|
Administrative expenses |
200 |
2,400 |
||||
|
Shelter |
400 |
4,800 |
||||
|
Depreciation (Asset write off) Expenses |
79 |
950 |
||||
|
Sub-total |
1,779 |
21,350 |
||||
|
Total Operating Costs |
15,507 |
186,086 |
Production
is assumed for 312 days per year. Depreciation assumes 2 year life of assets written
off at 50% 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 |
Unit |
Prod./yr |
Unit |
Total |
|
Curry |
100 |
31,200 |
6 |
186,086 |
7 |
218,400 |
|
Total |
186,086 |
218,400 |
4. Profitability Analysis Table
|
Profitability Item |
Per day |
Per Month |
Per Year |
|
Revenue |
700 |
18,200 |
218,400 |
|
Less: Operating Costs |
596 |
15,507 |
186,086 |
|
Profit |
104 |
2,693 |
32,314 |