BOTTLING PLANT (WHISKY, BRANDY, RUM, VODKA, GIN) FROM RECTIFIED SPIRIT/ENA
[EIRI/EDPR/1467] J.C. 248
INTRODUCTION
The alcohol industry is very important for the government. It generates an estimated Rs. 18,000 crore per annum in spite of the fact that the per capita consumption of liquor in India is the lowest in the world. The total liquor industry is worth Rs. 2,000 crore. IMFL accounts for only a third of the total liquor consumption in India. Most IMFLs are cheap and are priced below Rs. 300 per bottle.
Alcohol sales proceeds account for 45% of the total revenue collection in the country. Whiskey accounts for 60% of the liquor sales while rum; brandy any vodka account for 17% 18% and 6% respectively. MNC’s share is only 10%and they have been successful only in the premium and super premium ranges. Post WTO the government may have opened India to foreign distilleries, but the duty has been increased from 222% to 464-706%.This is due to the fact that there is a 100% customs duty, 150%contravening duty, local taxes, distributor’s margin, retailer’s margin and publicity charges. The cost is finally borne by the consumer. Though the government claims that this is being done to protect the domestic liquor industry, the domestic industry accounts for 99% of the market share.
This protectionist policy could prove to be counterproductive and lead to smuggling. As of now, only 45% of the sales are through legal channels and only 25% of this is duty paid for. Within India itself, the policy of alcohol retail differs form state to state. While some states like Maharashtra. Uttar Pradesh, and Tamil- Nadu have a liberal policy, come states like Haryana and Andhra.
COST ESTIMATION
Plant Capacity 800 Boxes/Day
Land & Building (3 Acres) Rs. 4.39 Cr
Plant & Machinery Rs. 3.23 Cr
Working Capital for 2 Months Rs. 3.89 Cr
Total Capital Investment Rs. 11.85 Cr
Rate of Return 41%
Break Even Point 44%
CONTENTS
PROJECT AT A GLANCE
INTRODUCTION
USES AND APPLICATIONS
PROCESS DESCRIPTION
LIST OF MACHINERY AND EQUIPMENTS USED IN ALCOHALIC BEVERAGES PLANT
EFFLUENT TREATMENT AND DISPOSAL
EQUIPMENT REQUIREMENT
MANPOWER
PLANT LAYOUT OF LIQUOR BOTTLING PLANT
PROJECT IMPLEMENTATION SCHEDULE
B.I.S. SPECIFICATIONS
VARIOUS TYPES OF INDUSTRIAL ALCOHOL
PRODUCTION OF BRANDY
PRODUCTION OF SPIRIT FOR GIN
MANUFACTURING PROCESS OF WHISKY
MANUFACTURERS OF ALCOHOLIC BEVERAGES
SUPPLIERS OF RAW MATERIALS
SUPPLIERS OF COMPLETE PLANT AND MACHINERY
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)
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