Detailed Project Report (DPR) on bottling plant of country liquor

COUNTRY LIQUOR BOTTLING PLANT

[CODE NO.3912] 

Country made liquor is a distilled alcoholic beverage made from locally available cheap raw material such as sugar-cane, rice, palm, coconut and cheap grains, with alcohol content between 11.4-45.7% V/V5. In developing country like India, it is more popular among poorer sections of population both in rural and urban part as it is cheaper than the foreign liquor or Indian made foreign liquor.

IMFL and country liquor goes through the same manufacturing process and is distilled from the same agricultural source (molasses). The differences are in strength (the percentage of alcohol) and flavours. Add whisky or brandy flavours, for instance, and it becomes IMFL. Take the flavour to a tangier side, it’s desi daru.

Country liquor, according to the BIS standards, is rectified Grade I spirit or any neutral spirit which may be obtained from fermented molasses, grain or any other source of fermentable carbohydrates. Cut through the technical jargons, all it means is that alcohol made from molasses and grains and distilled to a fairly high degree so that you get rectified spirit, minus the impurities.

This also means that it’s not country liquor that’s masquerading as something else but it’s IMFL that’s being passed off as genuine whisky, alcohol, gin, and brandy etc.  

The similarity largely has to do with the manufacturing process. “Both IMFL and country liquor use the same commercial reactive enzymes and multi-column distillation process. At a basic level, it’s the same. That’s the standard distillation equipment that gives rectified spirit.

Extra Neutral Alcohol (ENA) is the primary raw material for making alcoholic beverages. It is a colourless food-grade alcohol that does not have any impurities. It has a neutral smell and taste, and typically contains over 95 per cent alcohol by volume. It is derived from different sources — sugarcane molasses and grains — and is used in the production of alcoholic beverages such as whisky, vodka, gin, cane, liqueurs, and alcoholic fruit beverages.

Neutral spirits, also known as neutral alcohol, rectified spirits, rectified alcohol or ethyl alcohol is highly concentrated ethanol distilled until it reaches a min. ABV of 95% (190 proof). Neutral spirits can be made from grains, grapes, molasses, potatoes, and other agricultural origins. As the name suggests, neutral spirits are considered neutral in flavour, odour and are colourless. Having said that, there are some slight “flavour” variations among the neutral spirits, leading some to question if neutral spirits are truly flavourless.

Neutral spirits are widely used to make spirits such as vodka and gin, as well as to ‘cut’ liqueurs and make bitters, besides from its use in the spirits production the neutrality of rectified spirits also makes it useful in other industries such as the food, non-alcoholic beverage, pharmaceutical, perfumery, and cosmetics industry. It is common for neutral spirits intended for cosmetics and perfumes use to have denaturing agents added to it to reduce tax and to prevent human consumption.

IFB Agro, one of the largest manufacturers of alcohol, also supplies the same grade spirit to whisky manufacturers and country liquor. Its biggest brands are Hero, Joy, Captain and Dil Se. Tall boys indeed, with the largest market share in eastern states, such as West Bengal and Jharkhand.

COST ESTIMATION

Plant Capacity                                 39015 Nos/Day

Land & Building (6000 sq.mt.)       Rs. 4.54 Cr

Plant & Machinery                            Rs. 2.47 Cr

Working Capital for 1 Month         Rs. 2.54 Cr

Total Capital Investment                 Rs. 10.12 Cr

Rate of Return                                   51%

Break Even Point                              34%

• INTRODUCTION
  
• PROJECT LOCATION
• MAP OF DISTRICT
• GEOGRAPHY:-
• TRANSPORTATION
• BY AIR:
• BY RAIL:
• SHAKTINAGAR STATION
• BY ROAD:
• INDUSTRIES
• TYPES OF NEUTRAL SPIRITS
• DIFFERENT GRADES AND TYPES OF NEUTRAL SPIRITS
• EXTRA-NEUTRAL ALCOHOL
• GRAIN NEUTRAL SPIRITS (GNS)
• POTATO-BASED NEUTRAL ALCOHOL
• GRAPE NEUTRAL SPIRITS
• MOLASSES-BASED ENA
• SPECIFICATION OF EXTRA NEUTRAL ALCOHOL
• DIFFERENT TYPES OF DESI DARU
• 1. TODDY, KERALA
• 2. FENI, GOA
• 3. HANDIA, JHARKHAND
• 4. ZUTHO, NAGALAND
• 5. LUGDI, MANALI
• 6. CHHANG, LADAKH
• 7. APONG, ASSAM
• 8. MAHUA, MAHARASHTRA
• 9. KESAR KASTURI, RAJASTHAN
• 10. CHUWARAK, TRIPURA
• 11. THARRA, NORTH INDIA
• ETHANOL FERMENTATION
• THEORETICAL YIELD OF 37.5 GRAMS OF MOLASSES:
• SUCROSE - FERMENTATION
• THEORETICAL YIELD OF 37.5 GRAMS OF SUCROSE:
• GLUCOSE – FERMENTATION
• MATERIALS NEEDED
• METHODOLOGY A. PREPARATION OF WORT
• METHODOLOGY B. PREPARATION OF YEAST INOCULUM AND FERMENTATION
• METHODOLOGY C. DISTILLATION OF ETHANOL
• MARKET SURVEY
• EXTRA NEUTRAL ALCOHOL MARKET: KEY SEGMENTS
• EXTRA NEUTRAL ALCOHOL MARKET: REGIONAL OUTLOOK
• EXTRA NEUTRAL ALCOHOL MARKET: KEY PLAYERS
• CHOICE OF THE MASSES
• 1/3RD BY VOLUMES OF INDIAN ALCOBEV INDUSTRY
• EXPANDING CONSUMER BASE: ~40% OF POPULATION
• GROWING DRINKING AGE POPULATION TO BOOST ALCOBEV INDUSTRY
• IMIL CONSUMED BY GROWING BASE OF LOWER-INCOME STRATA
• IMPROVED QUALITY BRANDED PRODUCTS BUILD STICKINESS
• CONSUMPTION OF SUBSTANCES IN INDIA HAS EXISTED SINCE CENTURIES, 
•     TRACED EARLIEST TO 2000 BC.
• INDIAN SPIRITS INDUSTRY
• INCREASING DRINKING AGE POPULATION
• INDIAN MADE INDIAN LIQUOR (IMIL) INDUSTRY
• BUSINESS OVERVIEW
• MANUFACTURING BUSINESS
• CONSUMER BUSINESS
• RATIONALE FOR INVESTMENT
• KEY IMIL MARKETS
• UTTAR PRADESH 2ND LARGEST IMIL MARKET
• LOW PER CAPITA CONSUMPTION INDICATES HIGH UNDERREPORTING
• HARYANA IMIL: FACING TRANSIENT HEADWINDS
• FASTER GROWING EAST INDIA MARKETS
• BIHAR: FASTEST GROWING
• RAJASTHAN: STEADILY GROWING
• LAWS ACROSS THE VALUE CHAIN
• BOTTLING & PACKAGING
• BEVERAGE ALCOHOL LABELING REQUIREMENTS
• LIQUOR LICENSE
• NEED FOR LIQUOR LICENSE
• DOCUMENTS REQUIRED
• APPLICATION PROCEDURE FOR LIQUOR LICENSE
• APPROACH EXCISE DEPARTMENT
• PROCESSING TIME
• LIQUOR LICENSE RENEWAL
• PENALTY
• DISTILLATION METHODS AID IMIL QUALITY IMPROVEMENT
• PRESENT SCENARIO
• PROCEDURE AND INSTRUCTIONS FOR PROCUREMENT
• E N A APPROVAL
• ENA STORAGE
• ENA ISSUE
• QUALITY CONTROL TEST:
• PLANT LOCATION FACTORS
• 1. RAW - MATERIAL SUPPLY:
• 2. MARKETS:
• 3. POWER AND FUEL SUPPLY:
• 4. WATER SUPPLY:
• 5. CLIMATE:
• 6. TRANSPORTATION:
• 8. LABOR:
• 9. REGULATORY LAWS:
• 10. TAXES:
• 11. SITE CHARACTERISTICS:
• 12. COMMUNITY FACTORS:
• 13. VULNERABILITY TO WARTIME TTACK:
• 14. FLOOD AND FIRE CONTROL:
• RAW MATERIAL SUPPLIERS
• RECTIFIED SPIRIT/ ENA FROM DISTILLERY
• MACHINERY SUPPLIERS
• RAW MATERIAL PHOTOGRAPHS
• MACHINERY PHOTOGRAPHS
• ALCOHOL TANK
• ALCOHOL BOTTLING PLANT
• INDUCTION BOTTLE SEALING MACHINE
• LIQUOR BOTTLING LINE MACHINE
• PRODUCT PHOTOGRAPHS

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)