Detailed Project Report (DPR) on liquor bottling plant

LIQUOR BOTTLING PLANT

[CODE NO.4210] 

Alcohol has been widely consumed since prehistoric times by people around the world, as a component of the standard diet, for hygienic or medical reasons, for its relaxtant and euphoric effects, for recreational purposes, for artistic inspiration, as aphrodisiacs, and for other reasons. Some drinks have been invested with symbolic or religious significance suggesting the mystic use of alcohol, e.g. by Greeo-Roman religion in the ecstatic rituals of Dionysus (also called Bacchus), god of wine and revelry; in the Christian Eucharist and on the Jewish Shabbat and Festivals.

Humans have been drinking alcohol for thousands of years. Alcohol is both a chemical and a psychoactive drug. In chemistry, an alcohol exists when a hydroxy group, a pair of oxygen and hydrogen atoms, replaces the hydrogen atom in a hydrocarbon. Alcohols bind with other atoms to create secondary alcohols. These secondary alcohols are the three types of alcohol that humans use every day: methanol, isopropanol and ethanol.

In India, 'drinking' has remained a bad word, clubbed with the other services. While the beer and liquor market continuous to grow at an impressive rate even against an impressive rate even against an economic reassion, the social stigma remains in place which manifests itself in anti-growth state policies. United Breweries (UB), Shaw Wallacs and McDowell Cpart of UB group) presently dominate the liquor and beer market. The structure of the industry is clearly influenced by the regulatory environment and the consequent fragmentation of markets. The regulatory framework covers all these categories.

Besides these, there is a significant presence of illicitly brewed alcoholic beverages, which escapes the tax and regulatory net. We can have a look at an overview of Alcoholic beverage industry.

The Potable Sector Market 

1. Indian Made Foreign Liquor (IMFL) –Whisky, Rum, Brandy, Gin & Vodka -180 million cases p.a.

2. Country Liquor –222 million cases p.a. 

3. Beer (made from Barley and Malt)-170 million cases p.a. 

4. Wine Domestic –1.5 million cases p.a.

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, its desi daru.

“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.

Though consumption is still low, pattern of alcohol consumption vary widely through the country. Punjab, Andhra Pradesh, Goa and the north eastern states have a much higher proportion of male alcohol consumer than the rest of the country. Women tend to drink more in the state of Arunachal Pradesh. Assam and Sikkim in north-east; Madhya Pradesh, Chhattisgarh, Orissa and Andhra Pradesh in central and east India, and Goa in the west, compared to other states. Alcohol also provides and ‘excuse’ to behave in an uncontrolled manner, which make ‘controlled’ societies, like in many Asian countries, including India, even more at risk, where alcohol consumption tend to done without the knowledge of parents and family.

COST ESTIMATION

Plant Capacity                                    86,400 Nos./Day

Land & Building (4080 sq.mt.)  Rs. 3.21 Cr

Plant & Machinery                              Rs. 1.62 Cr

Working Capital for 1 Month            Rs. 63.33 Cr

Total Capital Investment                   Rs. 69.19 Cr

Rate of Return                                      54%

Break Even Point                                 23%

• INTRODUCTION
  
• THE POTABLE SECTOR MARKET
• PROJECT LOCATION
• DHARWAD DISTRICT
• CITY MAP
• CLIMATE
• TRANSPORTATION
• TRAINS:
• BUS:
• AIR:
• RANCHI DISTRICT
• CLIMATE
• MAP
• TRANSPORTATION
• BY AIR
• BY RAIL
• BY ROAD
• 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 ALCOHOL
• THE THREE TYPES OF ALCOHOL
• DISTILLED AND UNDISTILLED ALCOHOL
• DIFFERENT TYPES OF ALCOHOLIC DRINKS BY ALCOHOL CONTENT
• UNDISTILLED DRINKS
• BEER
• WINE
• HARD CIDER
• MEAD
• SAKÉ
• DISTILLED DRINKS (LIQUORS AND SPIRITS)
• GIN
• BRANDY
• WHISKEY
• RUM
• TEQUILA
• VODKA
• ABSINTHE
• EVERCLEAR
• ETHANOL FERMENTATION
• MOLASSES
• MOLASSES – 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
• FLOWCHART
• FLOW CHART SHOWING PRODUCTION OF IMFL FROM ENA
• MARKET POSITION
• 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
• INDIAN SPIRITS INDUSTRY
• INCREASING DRINKING AGE POPULATION
• INDIAN MADE INDIAN LIQUOR (IMIL) INDUSTRY
• INDIAN MADE FOREIGN LIQUOR (IMFL) INDUSTRY
• BUSINESS OVERVIEW
• CONSUMER BUSINESS
• RATIONALE FOR INVESTMENT
• BOTTLING & PACKAGING
• BEVERAGE ALCOHOL LABELING REQUIREMENTS
• PROCESS OF LIQUOR MANUFACTURING
• THE MAKING OF MALT WHISKY
• 1. MALTING
• 2. MASHING
• 3. FERMENTATION
• 4. POT STILLS
• 5. DISTILLATION
• THE MAKING OF GRAIN WHISKY
• THE ART OF BLENDING
• LIQUOR LICENSE
• KARNATAKA
• BREWERY LICENSE IN KARNATAKA
• RESTRICTIONS ON LICENSE
• JHARKHAND
• JHARKHAND LIQUOR LICENSE
• PURPOSE OF LIQUOR LICENSE
• THE APPROPRIATE CHARGES FOR THE TYPES OF LIQUOR LICENSE IN JHARKHAND ARE GIVEN BELOW:
• DOCUMENTS REQUIRED
• IN CASE OF COMPANY:
• IN CASE OF PARTNERSHIP FIRM:
• IN CASE OF PROPRIETORSHIP FIRM:
• IN CASE OF AN INDIVIDUAL
• DISTILLATION METHODS AID IMIL QUALITY IMPROVEMENT
• SCENARIO 10 YEARS BEFORE
• PRESENT SCENARIO
• PROCEDURE AND INSTRUCTIONS FOR PROCUREMENT
• EXTRA NEUTRAL ALCOHOL - PROCEDURE AND INSTRUCTIONS FOR PROCUREMENT
• ENA APPROVAL
• ENA STORAGE
• ENA ISSUE
• QUALITY CONTROL TEST:
• PLANT LOCATION FACTORS
• PRIMARY FACTORS
• 1. RAW - MATERIAL SUPPLY:
• 2. MARKETS:
• 3. POWER AND FUEL SUPPLY:
• 4. WATER SUPPLY:
• 5. CLIMATE:
• 6. TRANSPORTATION:
• 8. LABOR:
• 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
• INS 150 A NATURAL COLOURS
• 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)