NICOTINE BASED PRODUCTS (NICOTINE SULPHATE 40%, NICOTINE ALKALOID 95%, NICOTINE USP/EP, NICOTINE POLACRILEX, NICOTINE BITARTRATE DIHYDRATE)
[CODE NO.4334]
From harvesting of tobacco to manufacture of products, large quantities of waste materials comprising rejected leaves broken bits of lamina nidribs, stalks and stems accumulate such materials however can be utilized with considerable benefit. Nicotine and tobacco seeds are by far the most important by products derived from tobacco waste.
In addition many other chemicals like nicotine acid, nicotine sulphate, rutin, pectic and certain organic acids can be produced from these wastes.
The average nicotine content in Indian tobacco waste is 1-3% waste containing even less than 2 percent nicotine can be utilized. A simple and economic process by which about 95% of the nicotine present in tobacco waste can be recovered as nicotine sulphate has been developed by National Chemical Laboratory, Poona, and is being commercially exploited by Tobacco By Products Ltd., Guntur Urvakunj Tobacco by Products, Dharmaj (Gujarat) is also one of the nicotine sulphate manufacturing units.
Nicotine sulphate is extensively used in the control of insect pest of agricultural importance. It is being manufactured from waste tobacco and from the liquors obtained from factories making chewing and smoking tobacco. The waste tobacco is macerated with water and lime and then steam distilled. The distillate is neutralized with sulphuric acid and concentrated.
TOBACCO INDUSTRY AND EXPORT
Tobacco in India was introduced by Portuguese in the 17th century, is appreciated worldwide for its rich, full-bodied flavour and smoothness. It is now an increasingly well-known and respected commodity in global tobacco markets and has found its way into cigarettes manufactured in several countries. India has an impressive and progressive profile in the global tobacco industry, and it is an important commercial crop grown here. India is the second-largest tobacco producer and exporter in the world.
Tobacco Exports from India and Key Markets
• The tobacco export in the month of August 2021 was US$ 72.28 million and the total export during April 2021 to August 2021 was 386.08 million.
• The tobacco export in the month of March 2021 was US$ 85.52 million and the total export during FY21 was US$ 875.09 million.
• In FY21, export of unmanufactured tobacco stood at US$ 517.54 million.
• The total export of flue-cured Virginia (FCV) tobacco in July 2021, was US$ 18.7 million, while for a period from April 2021 to July 2021, it was US$ 139.6 million.
• India export unmanufactured tobacco primarily to Belgium, Korea, Nigeria, Egypt and Nepal. Western Europe is a key market for Indian tobacco export.
Foreign Direct Investment in Tobacco Industry in India
In August 2020, the parliamentary panel proposed permitting regulated foreign direct investment in India’s tobacco production and cigarette manufacturing to stimulate agricultural exports.
The panel proposed establishment of tobacco farms dedicated to exports only to improve outward shipments and to provide benefits to farmers. It also suggested to provide export incentives for tobacco and tobacco products.
Tobacco Board
The Tobacco Board of India is a facilitator for tobacco growers, traders and exporters. By creating synergies between these stakeholders, the Board fosters a vibrant enterprise, with a deep social conscience and strong national commitment. The Board estimates demand and regulates the production of FCV tobacco to match demand to ensure a fair price for the produce. It assists tobacco farmers in securing crop loans, quality seeds, fertilisers and other critical inputs, and also counsel’s farmers on GAP to produce quality tobaccos to meet the evolving international demand. In addition, the Board conducts auction for the sale of tobacco in a competitive and transparent environment. On the export front, the Board strives to improve the existing markets and develop new markets for Indian tobacco and tobacco products by undertaking brand building exercises and participation in international tobacco exhibitions.
COST ESTIMATION
Plant Capacity 1.12 MT/Day
Land & Building (9600 sq.mt.) Rs. 5.83 Cr
Plant & Machinery Rs. 2.76 Cr
Working Capital for 1 Month Rs. 11.84 Cr
Total Capital Investment Rs. 20.79 Cr
Rate of Return 65%
Break Even Point 29%
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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