Project Profile Candidate industry – Tapioca Chips

Project Profile
PROJECT PROFILE
Project:
Tapioca Chips
Capacity:
120 MT/Annum
Project Cost:
INR 17.92 lakhs
Exported oriented:
Targeted at domestic markets
Candidate industry – Tapioca Chips
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 – Tapioca Chips
Description
The growing demand for snacks has led to the introduction of new edible food items like
tapioca chips. It has a rightful place in the household menu all over the country. This tasty
delicacy makes a good tit-bit as a snack food item, not only in households but also in
parties, gatherings, picnics, etc. It is nutritious and very easy to make and thus has
become a popular snack item within no time. It is generally made on regional basis and
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nearby markets are catered to. There are not many complications in making tapioca chips
and the capital cost of the project is also manageable.
Relevance of the
Karnataka is one of the top five growers of tapioca in India. There is growing interest in
industry in Karnataka
tapioca cultivation. Tapioca is locally called Kolli or Cassava in Karnataka.
With changing food habits, it is no more considered as a table variety and has assumed
acceptance as a snack food item. Tapioca chips are available in different shapes, colors
and tastes and primarily imagination of the promoters and judgment about the consumer
preferences are of utmost importance. Keeping in mind, the local preferences about tastes
and palatability, changes can be made by adding some spices or red chilly.
Major districts suitable
for the industry
1. Southern districts of Karnataka
Project Profile: Candidate industry – Tapioca Chips
Manufacturing Process
Fully grown tapioca plants are harvested, washed. The outer
Process Flowchart
Selection of tubers and washing
skin is removed using automatic peelers or manually. Once
again these are washed in clean water and dried (ie de-
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watering). These dried tapioca are sliced according to the
required thickness. These are then fried in vegetable oil. Once
Peeling/trimming process
cooled, tapioca chips are packed. Spices can be added as per
the consumer demand and taste.
Slicing, washing and sorting
Quality and compliance
De-watering
Compliance should be with:
1. Prevention of Food Adulterations Acts and Rules, 1954
2. Fruit Products Order, 1955
Frying, cooling and packing
Project Profile: Candidate industry – Tapioca Chips
Project Profile
Cost of the Project
Amount (Rs in Lakhs)
Land and Building
4.34
Machinery
7.00
Miscellaneous Assets
1.40
Preliminary and preoperative expenses
2.10
Contingencies (10% of project cost)
1.12
Working capital
1.96
Total cost
Means of Finance
Promoter’s contribution
Term loan from bank
Debt equity ratio
17.92
Amount (Rs in Lakhs)
5.53
12.39
2.24:1
Project Profile: Candidate industry – Tapioca Chips
Assumptions
Sale price per Kg
Rs 56 per Kg
Capacity of the unit (oil and cake)
120 tonnes per annum
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Projected Profitability
Amount (Rs in Lakhs)
Revenue at 65% utilization
Cost of production including loan payment
Profit Before Tax
Income tax @ 20%
Profit After Tax
IRR calculation
Cash Accruals (PAT)
Discount factor @ 21%
IRR = 21%
Year 1
Year 2
Year 3
Total
Project Profile: Candidate industry – Tapioca Chips
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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