Detailed Project Report (DPR) on Beedi Manufacturing (Cap: 1100 Packs/Day)

BEEDI MANUFACTURING (CAP: 1100 PACKS/DAY)

[EIRI/EDPR/4614] J.C. 2831XL

The beedi industry in India is huge, unregulated, and a breeding ground for festering occupational hazards. In 2022, the estimated number of beedi smokers in the age group 15 to 69 years was around 7.9 crores. To compare, the same estimate for cigarette smokers was around 6.1 crores.

The industry also employs a large number of women and children. Out of the estimated 60 lakh beedi workers in India, approximately 90% are women.

On paper, there are multiple legislations protecting beedi workers in India such as the Beedi and Cigar Workers (Conditions of Employment) Act 1966, Beedi Workers’ Welfare Fund 1976 and social security laws such as the Provident Fund Act 1952, Employees State Insurance Act 1948, Maternity Benefit Act 1961 etc.

In India, beedis are twice as popular as cigarettes. However, unlike the cigarette industry, beedi production and sales remain unregulated. Research also shows that death rates among beedi smokers are 64 per cent higher than for non-tobacco users.

The industry’s largely unregulated nature leads to the mass exploitation of beedi workers. Policy solutions, better implementation and social mobilisation are needed to ensure that beedi workers are treated fairly and get the compensation that they deserve.

Through this report, we hope to analyse the beedi industry in various states across India. We hope to uncover the loopholes in the implementation of policies in the beedi industry and provide suggestions for the same.

Bidi, originated in the Indian Subcontinent, is a thin cigarette or mini-cigar filled with tobacco flakes and as a practice is wrapped in a tendu leaf (plants that are native to Asia- Diospyrosmelanxylon) tied with a string adhesive at one end. The name is derived from the Marwari word beeda a mixture of betel nuts, herbs, and spices wrapped in a leaf.

COST ESTIMATION

Plant Capacity            1100 Packs/Day  

Land & Building (3000 sq.mt.)    Rs. 85.25 Lac    

Plant & Machinery                    Rs. 42.70 Lac 

Working Capital for 2 Months    Rs. 1.51 Cr 

Total Capital Investment          Rs. 2.58 Cr 

Rate of Return                          34%

Break Even Point                      55%

CONTENTS

INTRODUCTION

OVERVIEW OF TENDU LEAVES

INTRODUCTION

TENDU LEAVES

TENDU TREE

TOBACCO CULTIVATION, HARVESTING AND CURING

CHHATTISGARH TENDU LEAVES ANNUAL PRODUCTION AND VALUE:

TENDU LEAVES COLLECTION AND TRADE PRACTICES

THE YEAR WISE DETAIL OF COLLECTION AND SALE OF TENDU LEAVES IN THE STATE ARE AS FOLLOWS:-

MADHYA PRADESH TENDU LEAVES ANNUAL PRODUCTION AND VALUE:

DATA OF TENDU LEAVES TRADE

COLLECTION RATES IN DIFFERENT SEASONS

MANAGEMENT PRACTICES

YOUNG TENDU TREES BY SIDE BRANCH CUTTING

MARKETING STRATEGIES IN DIFFERENT STATES

TENDU LEAVES COLLECTION AND TRADE PRACTICES

COLLECTION OF TENDU LEAVES

LOCAL COLLECTION CENTER 'PHAD'

ODISHA TENDU LEAVES ANNUAL PRODUCTION AND VALUE:

UNIQUENESS OF ODISHA'S TENDU (KENDU) LEAF

MARKETING OF KENDU LEAFS BY THE OFDC

SELLING OF KENDULEAFS THROUGH E-TENDER/AUCTION SALE

THE QUANTITY SOLD AND ITS SALE VALUE REALIZED DURING LAST FIVE YEARS ARE SHOWN BELOW:

EXISTING LEGISLATION IS CURRENTLY IN PLACE IN INDIA:

THE BEEDI WORKERS WELFARE CESS ACT, 1976

THE MINIMUM WAGE ACT, 1948

BEEDI AND CIGAR WORKERS (CONDITIONS OF EMPLOYMENT) ACT, 1966

THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT 1970

THE EQUAL REMUNERATION ACT 1976

THE MATERNITY BENEFIT ACT 1961

THE CIGARETTES OR OTHER TOBACCO PRODUCTS (PROHIBITION OF ADVERTISEMENT AND REGULATION OF TRADE AND COMMERCE, PRODUCTION, SUPPLY AND DISTRIBUTION) ACT 2003 OR COTPA

TAXATION

EMPLOYMENT IN THE BEEDI INDUSTRY

STAKEHOLDERS:

INDIVIDUAL STAKEHOLDERS:

INSTITUTIONAL STAKEHOLDERS:

THE MIDDLEMAN:

BEEDI CONSUMPTION COSTS

TOBACCO SMOKING 

SMOKELESS FORMS OF TOBACCO 

PAAN (BETEL QUID) WITH TOBACCO 

PAAN MASALA 

MAINPURI TOBACCO 

MAWA 

TOBACCO AND SLAKED LIME (KHAINI) 

TOBACCO INDUSTRY AND EXPORTS INDIA

TOBACCO EXPORT TREND

MAJOR MARKETS

MARKET POTENTIAL

MANUFACTURING PROCESS OF BEEDI

THE PROCESS OF BEEDI MAKING INVOLVES THE FOLLOWING:

PRINCIPLES OF PLANT LAYOUT

MAJOR PROVISIONS IN ROAD PLANNING FOR MULTIPURPOSE SERVICE ARE:

PLANT LOCATION FACTORS

PRIMARY FACTORS

1. RAW-MATERIAL SUPPLY:

2. MARKETS:

3. POWER AND FUEL SUPPLY:

4. WATER SUPPLY:

5. CLIMATE:

SPECIFIC FACTORS

6. TRANSPORTATION:

7. WASTE DISPOSAL:

8. LABOR:

9. REGULATORY LAWS:

10. TAXES:

11. SITE CHARACTERISTICS:

12. COMMUNITY FACTORS:

13. VULNERABILITY TO WARTIME ATTACK:

14. FLOOD AND FIRE CONTROL:

EXPLANATION OF TERMS USED IN THE PROJECT REPORT

1. DEPRECIATION:

2. FIXED ASSETS:

3. WORKING CAPITAL:

4. BREAK-EVEN POINT:

5. OTHER FIXED EXPENSES:

6. MARGIN MONEY:

7. TERM LOANS:

8. TOTAL LOAD:

9. LAND AREA/MAN POWER RATIO:

UTILITIES 

POWER

WORKING 

TOTAL MANPOWER AND PAYROLL 

UTILITIES

PLANT AND MACHINERY MANUFACTURERS

BEEDI MANUFACTURERS

HERBAL BEEDI MANUFACTURERS

SUPPLIERS OF RAW MATERIALS

SUPPLIERS OF PLANT AND MACHINERY

WEIGHING MACHINES

PACKAGING MACHINE

D.G. SET

LABORATORY TESTING EQUIPMENTS

DOCUMENTS REQUIRED FOR LICENSES 

LIST OF DOCUMENTS:

ADDRESSES OF RELEVANT GOVERNMENT OFFICES

ADDRESSES OF FINANCIAL INSTITUTIONS

SWOT ANALYSIS

PRODUTS IN THE MARKET

ORGANIZATION CHART

PLANT LATOUT

IMPLEMENTATION SCHEDULE

APPENDIX – A:

01. PLANT ECONOMICS

02. LAND & BUILDING

03. PLANT AND MACHINERY

04. OTHER FIXED ASSESTS

05. FIXED CAPITAL

06. RAW MATERIAL

07. SALARY AND WAGES

08. UTILITIES AND OVERHEADS

09. TOTAL WORKING CAPITAL

10. TOTAL CAPITAL INVESTMENT

11. COST OF PRODUCTION

12. TURN OVER/ANNUM

13. BREAK EVEN POINT

14. RESOURCES FOR FINANCE

15. INSTALMENT PAYABLE IN 5 YEARS

16. DEPRECIATION CHART FOR 5 YEARS

17. PROFIT ANALYSIS FOR 5 YEARS

18. PROJECTED BALANCE SHEET FOR (5 YEARS)