Detailed Project Report on Bottling Plant (Whisky, Brandy, Rum, Vodka, Gin) From Rectified Spirit/ENA

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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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