Honey Processing Unit Model DPR - Bihar
Honey Processing Unit Model DPR Submitted by: Directorate of Horticulture, Government of Bihar January 2021 Disclaimer: This is just a model DPR prepared based on assumptions for reference purpose only. The project cost and financial projections may vary project to project as per technology selection, nature of civil work, price of raw materials etc.
Table of Contents 1. Project at a Glance . 4 2. Introduction . 6 3. Background . 7 1. Global Scenario . 7 2. Indian Scenario. 7 3. State Scenario . 7 4. Project Background . 9 5. Organization and Promoter Details . 10 1. Organizational details . 10 2. Promoters’ Background . 10 Project Description and Flow Sheet .12 6. 1. Project components .12 2. Honey processing unit 10 tons /day capacity .12 3. Automatic filling, labeling, packing line .12 4. Location of the Project .12 5. Raw Material Availability .12 Technology and Process Description . 14 7. 1. Technology .14 2. Process description .14 7.2.1. Collection and storage of honey .14 7.2.2. Pasteurization .14 7.2.3. Storage tank and bottling labeling .14 7.2.4. Cooling and Packaging .14 Procurement Strategy of Raw Materials and Other Inputs .15 8. 1. Backward Linkages: . 15 2. Forward Linkages . 15 Marketing Plan . 16 9. 1. Market Segments .16 2. Product packing .16 Land Details . 17 10. 1. Land Details . 17 Project Cost and Means of Finance . 18 11. 1. Project Cost . 18 2. Site renovation . 18 3. Civil construction . 18 4. Equipment . 18 5. Miscellaneous Fixed Assets / Utilities .19 6. Preliminary & Pre-operative Expenses .19 7. Working Capital Requirement .19 8. Contingencies . 20 9. Means of Finance . 20
10. Business Plan . 20 11. Operating Cost Assumptions .21 11.11.1. Packaging material .21 11.11.2. Power Load Requirement .21 11.11.3. Employee Cost .21 11.11.4. Cost of insurance and Maintenance . 22 11.11.5. Admin & Selling Overheads Costs . 22 12. Financial Assumptions . 22 11.12.1. Depreciation Rates . 22 11.12.2. Interest . 22 13. Revenue Assumptions . 22 14. Capacity Utilization . 23 Financial Analysis . 24 12. 1. Projected Profitability Statement . 24 2. Financial Performance indicators . 25 3. Projected Cash Flow Statement . 25 4. Projected Balance Sheet . 26 13. Schedule of Implementation . 28 14. Project Impact . 29
1. Project at a Glance
1. Project at glance 1. Name of the Unit : 2. Constitution : 3. Date of Incorporation : 4. CIN : 5. PAN : 6. GST 7. Registered Office : 8. Factory Address : 9. Name of Directors : 10. Type of Unit : 11. Nature of Project : Honey Processing Unit 12. Installed Capacity at 100% : 10 MT per Day Capacity Utilization 13. Cost of the Project : INR 124.45 Lakh 14. Promoter’s Contribution : INR 31.11 Lakh 15. Proposed Term Loan : INR 93.34 Lakh 16. Requirement of Working Capital : INR 34.14Lakh 17. Proposed Employment : Direct Employment - 14 nos. 18. Power Load : 150kVA
2. Introduction Honey has historical importance since it is being used from pre-historic time as natural sweetener agent. With rising awareness on health benefits of honey and health consciousness among people across world, honey has gained importance in recent decades. Its use is not only limited to food for human consumption rather it is also being used in various industries such as- cosmetics, and medicines. This has also led to large consumer appeal. Honey products such as- wax, Bees Wax, Bee Venom, Propolis, Royal Jelly & Pollen has high demand in pharmaceutical industries. It also helps in generating substantial foreign exchange through export market due to its high demand at global level. Bihar is among the key honey producing states in the Country. It produces approximately 4000 MT of honey each year and accounts for 50% of the total honey production in the country. A large base of Bihar’s rural population is engaged in the collection of honey from the Litchi/Mango orchards and farmland but in the absence of a modern processing facility, honey collectors are forced to outsource processing function to other States or sell it at throw away prices. Raw honey has a market price of 55-65 per kg while processed honey has a market price ranging from 150-175 per kg in the market. Assessing the State’s potential of capitalizing on the surplus production of honey and the potential of increasing the level of processing, value addition, employment generation, creating self-reliance and promote focused sector growth under honey, Bihar Government has launched- Bihar Agri Investment Promotion Policy 2020 (BA-IPP 2020). The policy identifies honey as one of the core sector among six other in agriculture and aims to create an ecosystem for developing and creating enterprises across honey processing and value addition activities. The policy shall provide capital subsidy to the eligible individual investors / entrepreneurs or registered farmerbased companies for setting up / modernization / diversification/ expansion of agro processing units in the identified sectors of Agriculture, in the state of Bihar. The investors/ entrepreneurs may set-up their units as Proprietorship, Partnership firm, Limited Liability Partnership (LLP), Company including Farmer Producer Company (FPC).
3. Background Honey and beekeeping have a long history in India. Honey was the first sweet food tasted by the ancient Indian inhabiting rock shelters and forests. The raw materials for the beekeeping industry are mainly pollen and nectar that come from flowering plants. Both the natural and cultivated vegetation in India constitute an immense potential for development of beekeeping. About 500 flowering plant species, both wild and cultivated, are useful as major or minor sources of nectar and pollen. There are at least four species of true honeybees and three species of the stingless bees. Several sub-species and races of these are known to exist. In recent years the exotic honeybee has been introduced. Together these represent a wide variety of bee fauna that can be utilized for the development of honey industry in the country. There are several types of indigenous and traditional hives including logs, clay pots, wall niches, baskets and boxes of different sizes and shapes. Rapeseed / Mustard Honey, Eucalyptus Honey, Lychee Honey, Sunflower Honey, Karanj / Pongamea Honey, Multi-flora Himalayan Honey, Acacia Honey, Wild Flora Honey, Multi and Mono floral Honey are some of the major varieties of Natural Honey. 1. Global Scenario The global market size of honey is around US 8.4 billion, and it is projected to reach US 10.3 billion by 2025, with an expected CAGR of around 4.8%. Globally 1,779.6 metric tons of honey is produced. China produces almost 28% of world’s honey, followed by Turkey (5.9%), Iran (4.5%) and US (4.1%). India is the 6th largest producer of honey, accounting for 3.5% of global production. As per the information available from Agricultural & Processed Food Products Export Development Authority, India has exported 51547.31 MT of Natural Honey to the world for the worth of Rs. 653.58 crore/ 101.32 USD Million during the year of 2017-18 and the Major Export Destinations (2017-18) are USA, Saudi Arab, UAE, Canada and Qatar. As consumers across the globe are becoming health conscious, they are increasingly inclined towards healthy and natural alternatives over artificial sweeteners. Burgeoning awareness about the benefits of honey is providing an impetus to the global honey market. 2. Indian Scenario 1With 3.5% of contribution to global honey production. India has a honey market worth Rs. 15,579 Million in 2018 with a CAGR of 10.9% during 2012-2018. The market is further projected to reach a value of INR 28,057 million, at a CAGR of 10.2% in next five years. 2As per the report of National Bee Board, there are 9698 registered bee keepers and 1559771 bee colonies in India by 2019. Bihar is top five State in terms of bee farming for honey. In addition to it, other States such asKerala, Tamil Nadu, West Bengal, Odisha, Himachal Pradesh, Kashmir, Punjab, Meghalaya, Andaman and Nicobar islands are also important states in which beekeeping has been given prime importance. In India’s case, the per capita honey consumption is as low as 50 grams per year; globally, it ranges from 250300 gm(anonymous). In Asia, Japan is the biggest consumer of honey, with per capita consumption of up to 2 pounds per year. 3. State Scenario 3Beekeeping in Bihar is an old practice under which Apis cerana, used to be farmed. The industry flourished well but due to by TSBV (Thaisac brood virus), there was a setback to this industry in the 1980s. Further to to rejuvenate the industry, Apis mellifera bees were introduced in Bihar during In 1987-88 as an All India Coordinated Research Project on Honeybee, DRPCAU, Bihar, Pusa centre. The bees adopted themselves quiet well in different agro climatic conditions prevailing in the state and from there, the bee industry has been flourishing. (Source: Dr. Rajendra Prasad Central Agricultural University) Bihar is located in the eastern part of the country and has the advantage of rich flora and ecological conditions for beekeeping and has high potential for beekeeping and production of beehive products. The weather conditions prevailing in the state are more conducive for beekeeping as the favorable temperature (25-35ºC) prevail throughout the year except during the months of May – June and December-January, for few weeks. The adverse weather conditions are easily overcome by proper management of colonies. Though, Apis mellifera unlike Apis cerana is free from any dreaded diseases the colonies suffer from the attack of wax moths, Status Report on Bee Keeping and Honey Processing, GoI 2018-19 National Beed Board, 2019 3https://www.rpcau.ac.in/beekeeping/ 1 2
wasps, mites and ants but beekeepers adopt successfully preventive control measures to check the loss of colonies from natural enemies. (Source: Dr. Rajendra Prasad Central Agricultural University) The litchi honey has gained high momentum of growth in Bihar due to its better taste, color and flavor than the honey produced in other states due to variation in ecological conditions. Litchi honey is very popular and has high demand nationally and internationally. The State is endowed with three to four honey flow season (Litchi, Mustard, Mix honey of Mung, Till, Jamun and Drumstick) compared to one or two in other states. There is a vast area of litchi orchards in the state and more than four varieties of litchi are found extending the flowering period for about a 20-25 days to a month. (Source: Dr. Rajendra Prasad Central Agricultural University) Honey is a major consumable in the international market both as a food item as well as in industries such as Pharmaceuticals, Cosmetics and Confectionary. The demand is especially high for refined, high quality honey free pesticides, insecticides and other agrochemicals. (Source: Dr. Rajendra Prasad Central Agricultural University) Bihar Potential Largest producer of Litchi honey at par with premium honey in world Endowed with 3-4 honey flow season with litchi, mango guava and mustard 20K MT honey production per annum and involves 50K directly or indirectly State of Art apiary with beekeeping research laboratories available Mellifera bee-keeping has already popularized in short span of time Farming by most deprived section of community mostly women and landless farmers Ensure household engagement in atleast 2 season High value crop with market of Rs.500-Cr per annum at individual level
4. Project Background The Unit propose to install a modern Honey processing unit having an installed capacity of 10 MT/day in . Total raw material requirement of the proposed unit, during the peak season of its production, will be about 80MTs (estimated figure). The processing will be done for about 8 months in a year. The capacity of the unit has been arrived at after giving due consideration to the market demand, the capacity of the promoters to procure raw material, and forward linkages of the promoters. Current status of the unit: a. Items to be manufactured: Processed Honey b. Capacity of the plant: 10 MT/hr. c. Source of power generation/electricity: Electricity form BSPHCL/SBPDCL, DG Set d. Source of water supply: Own Borewell e. Connectivity to road/railways: NH/SH details along with distance f. Mode of transport: Pickup/Truck/Others g. Market: Details of local market/other market h. Employment Generation:18 nos. i. Marketing: j. Waste disposal: ETP/STP A Calendar of Bee Flora in Bihar Flora Mustard Mango Litchi Karanj Guava Pineapple Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec X X X X X X X X X X X X X X X X X X
5. Organization and Promoter Details 1. Organizational details The M/s XYZ is a proprietorship/partnership/private company is associated with . for about 10 years. The unit was incorporated on as private limited company under Company’s Act. The authorized capital of the company is Rs. . lakh and the paid-up capital is Rs. . as on .The details of the unit as per MCA website (only for private/public ltd. companies) are given below: Company Master Data CIN Company / LLP Name ROC Code Registration Number Company Category Company Sub-Category Class of Company Authorized Capital(Rs) Paid up Capital(Rs) Number of Members(Applicable in case of company without Share Capital) Date of Incorporation Registered Address Email Id Whether Listed or not Date of last AGM Date of Balance Sheet Company Status(for e-filing) Directors/Signatory Details DIN/PAN 2. Name Begin date End date Promoters’ Background The unit is a proprietorship/partnership/private limited company/ firm and the proprietor/partners/promoters of the firm has experience in trading/processing of and is associated processors. He/They has/have identified Honey Processing a profitable business seeing its ever-increasing demand in the local market as well market in the neighboring districts and States. Brief profile of the proprietor/partners/promoters is given below: a) Mr. ABC b) Mrs. XYZ c) Mr. DEF Net-worth: The details of the net-worth of the unit is given below: Particulars Movable assets Rs. In lakh A B C Subtotal (A)
Immovable assets A B C Subtotal (B) Total The total net-worth is more than the proposed grant of the unit.
6. Project Description and Flow Sheet Proposed project aims for the setting up of modern honey processing unit and for expansion of existing honey processing unit from 200 kgs to 10 tons /day. This unit will be equipped with state of art honey processing, filtration and labeling, packing machines. Promoters have also interest in exporting processed honey from this unit of various fruit flavors. The society plans to procure raw honey from local producers as well as from producers of other districts. After procurement the raw honey will be processed and will be packed in bottles of different sizes ranging from 50gms to 5kgs.While the small size bottles will be used for meeting local demands the big packs will be sold to corporate houses like Dabur, Baidya Nath, Ayurveda Bhawan (Patna), etc. 1. Project components The project will have following components 2. Modern Honey Processed processing unit 10 tons /day capacity Cleaned and purified bee wax Automatic bottling, labeling line Allied products Honey processing unit 10 tons /day capacity The Unit would install a modern Honey processing unit having an installed capacity of 10 MT/day in . Total raw material requirement of the proposed unit, during the peak season of its production, will be about . The processing will be done for about 8 months in a year. The capacity of the unit has been arrived at after giving due consideration to the market demand, the capacity of the promoters to procure raw material, and forward linkages of the promoters. 3. Automatic filling, labeling, packing line An automatic Bottling line for filling of honey, labeling and packing is proposed to match the processing capacity of honey. It would reduce the losses of filling, spillage etc and improve the visual appeal of the product in national and international market 4. Location of the Project The unit is set up in a land area of (preferably in 15,000 sq. ft. as illustrative) in . The land is located along the two lanes all weather main road. The site is around . Km from . The selection of the location has been done in consideration with the various favorable aspects related with the plant such as: 5. Raw material availability Connectivity Linkages with markets/procurement center Availability of infrastructure such as water Availability of manpower Raw Material Availability Bihar is one of the leading honey producing states in India. The main regions in which beekeeping are done are the districts of Muzaffarpur, Vaishali, Sitamarhi, Champaran, Madhepura, Katihar and Begusarai. Approximately 3,900 MT of honey was produced in the state out of the total country’s production of 8,400 MT in 2002. Bihar is the only state producing litchi honey on commercial scale, and it should rank at par with some of the premium honey in world market such as the Block Forest Honey of Germany and the Spanish Orange Honey in terms of its uniqueness and quality. The processing industry has not kept pace with the increase in beekeeping in the state with no large processing unit within the state. There are a handful of processing units in the organized sector with most of the processing happening in the unorganized sector with the main being the processing plant run by .
Processing of Honey (Illustrative)
7. Technology and Process Description Technology for the unit has been chosen carefully keeping in mind the best practices observed in India and local processes that may add unique value to the final produce. The proposed technology has also taken into consideration the market factors affecting the quality of the final produce. The technology has been arrived at after detailed discussion with the experts and local stakeholders. Details of the technology and process are given below: 1. Technology The unit shall use modern technologies such as liquefier, auto moisture removal from honey, homozoniser and auto filling, labeling and packing line. This has been done to improve the quality of the final produce and overcome quality constraints. The technology to be used in the unit is well-proven. Plant and machinery for the unit shall be procured from reputed suppliers of India. Technological improvements, in the proposed unit, in comparison to the traditional honey processing technique are summarized below. Parameter Current Practice Removal of moisture at specific temperature and time It is done manually Homogenizing of honey Auto packing line This practice of homogenizing is not into practice Bottles are packed manually Value addition No value addition is being done 2. Technological Improvement envisaged in the unit During Processing auto control measures has been installed to monitor temperature and time of moisture removal State of art machine for homogenizing the honey is used. Automatic bottling machines will be used which not only is efficient but also avoids fly menace in the campus. linked to DG sets Different flavored honey will be packed separately Process description Important processes are described below: 7.2.1. Collection and storage of honey Raw honey is collected in cleaned plastic containers and stored in fly proof storage rooms which have definite system of controlling fly, mosquitoes, ants, cockroaches, rats and other insect which contaminate the product.After receiving product (Raw Honey) is transferred in SS tanks which has proper closers and went which can be cleaned nicely after every usage 7.2.2. Pasteurization Honey is pasteurized in order to slow down the natural process of granulation, in order to allow it to remain in a liquid (or pourable) form longer, which is particularly useful if it is dispensed from squeeze bottles or poured for easy measurement when cooking or baking. Honey is heated to a minimum temperature. This honey is treated in a registered pasteurizing plant by the controlled application of heat so that the honey is free of viable sugartolerant yeasts. 7.2.3. Storage tank and bottling labeling Honey after homogenization is kept in storage for a little while to bring down the temperature to the filling level. Glass bottles may break and handling of hot product is not easy but same time honey is kept worm (around 70 degree C) at the time of filling in Bottles. 7.2.4. Cooling and Packaging After temperatures has come down to less than 50 degree C , cooled and labeled bottles may be packed in cartons, labeled and stored for further dispatches.
8. Procurement Strategy of Raw Materials and Other Inputs The unit will require approximately 10 Tons of raw honey per day, The promoters have existing linkages with farmers of nearby areas to procure the required honey. They have also developed linkages with farmers in other parts of the state which includes bee keeping area of . Promoters to begin with will concentrate mainly on the nearby areas of . to procure raw honey for the unit. 1. Backward Linkages: The promoter has well established backward linkages for its proposed units and it is expected that the raw material can be procured from the local area. 2. Forward Linkages Food product such as processed honey, wax, royal honey, etc. has a great demand in the metro and urban centers. There exist a growing market of honey products globally and India is a leading exporter of honey. The availability of honey processing unit with state of the art technologies are few in region and State and hence concentrated effort needs to be given to build up the forward linkages of processed honey.
9. Marketing Plan The unit, shall sale its produce to the lead honey marketing companies i.e., Dabur, Baidya Nath and other exporters of Punjab, Mumbai and Delhi. Promoters are also planning to export their produce in near future for that they have export license. The promoters have existing tie-ups which will be leveraged for selling the produce. The promoters propose to seek the help of the existing marketing intermediaries to develop the market. However, in the future they intend to develop their own marketing team to ensure direct contact with markets for their products. 1. Market Segments The promoters shall target two market segments for marketing of honey. These are: 1- Lead dealers/ companies in India 2- Direct exports 2. Product packing The company will have bottles of varying weights which is suitable for the retail market. It will also use different packing materials for its product. The product mix is given below: Product Targeted customer segment 50 grams bottles For medicinal and for puja usage 100 grams bottles For occasional usage 250 grams bottles Frequent users 1 kg pack bottles For regular usage 5 kg Bulk pack For industrial pack( for confectionery and pharmacy )
10. Land Details 1. Land Details In order t
Multi-flora Himalayan Honey, Acacia Honey, Wild Flora Honey, Multi and Mono floral Honey are some of the major varieties of Natural Honey. 1. Global Scenario The global market size of honey is around US 8.4 billion, and it is projected to reach US 10.3 billion by . period for about a 20-25 days to a month. (Source: Dr. Rajendra Prasad .
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To the 4-H Leader: The honey bee project (Books 1 - 4) is intended to teach young people the basic biology and behavior of honey bees in addition to hands-on beekeeping management skills. The honey bee project books begin with basic honey bee and insect information (junior level) and advance to instruction on how to rear honey bee colonies and
Jan 07, 2020 · Comb Honey Honey in the wax cells. You can chew the wax like gum. Chunk Honey A piece of comb honey in a jar with liquid honey poured around it. Comb honey is nature’s perfect unprocessed, unheated, and unadulterated sweet. The fine delicate flavor is unmat
Wild honey bees (also called Africanized bees) in Arizona are a hybrid of the western honey bee (Apis mellifera), and other bee subspecies including the East African lowland honey bee (Apis mellifera scutellata), the Italian honey bee . Apis mellifera ligustica, and the Iberian honey bee . Apis mellifera iberiensis. They sometimes establish colonies
F Giant Bee pure honey Q Honey A G Vpure 850 R Madu hutan H Vblack 850 S Madu hitam I Vroyal 850 T Gelam honey J Rosebee honey U Nenas honey . peroxide test kit. Carbon dioxide free, distilled water, carbon dioxide free was used to in this study. 33 2.3.1.3 INSTRUMENTS AND APPARATUS A few instruments were used in this study, e.g .
Honey is the main energy source for the bees’ survival — without it, they will perish. Worker bees consume honey to stimulate wax glands in their abdomens. Beeswax is then used to construct and build cells in which to store further honey and pollen and to raise larvae, and to cap cells full of ripe honey. Bees are insects and thus cold .
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