Detailed Project Report on Onion Powder

ONION POWDER

[EIRI/EDPR/0785](J.C.9402)

INTRODUCTION

Dehydrated Onions have been produced in small quantities since the nineteenth century is dehydrated onions were supplied to British naval expeditions in the mid-nineteenth century and dehydrated onions have been produced in sizable quantities during subsequent wars, primarily for consumption by armed forces, but also for civilian use. Since the quality of these products when rehydrated compared unfavorably with fresh vegetables or other types of processed onions, their usage declined rapidly after each war. However the processing techniques employed in the production of dehydrated onions has been improved greatly since World War II, particularly since the late nineteen fifties and as a result the quality of dehydrated vegetables has much improved. At the same time the demands for convenience foods have been increasing and dehydrated onions have benefited accordingly.

The main advantages of dehydrated onions are that they are easy to store, being lighter in weight and smaller in bulk than fresh or other processed onions, they are cheap to pack compared with conned goods, they do not require refrigerated storage as do frozen onions and the contents of a container can be used some time after opening provided they are not rehydrated.

The newest dehydration process appears to be a variation on the air-drying process and is based on the principle of vapour pressure differentials, using air circulated around the onions at relatively low temperatures to `sweat' the water from the food. It is reported that this method of dehydration prevents a crust forming on the outside of the pieces of food and that the low temperatures have less effect on flavour, texture, colour and vitamin contents of onion than do the higher temperatures used in conventional hot air-drying methods.

When establishing a dehydration industry considerable thought should be given to the procurement of fresh onions for dehydration. In most countries onions for dehydration are grown almost exclusively on contract to the processors. The contract are made up of a year in advance and cover such aspects as acreage, planting periods, varieties of onions, field inspection, stage of maturity for harvesting, delivery dates, grading and prices. To operate a dehydration plant efficiency, a constant supply of onions is required and this involves considerable organisation buying in supplies of fresh onion market is rarely practicable since varieties grown for the fresh market may be un suitable for processing and continuity if supply cannot be assured. It is usually found that specialization in processing one or two types is more profitable then production of wide range of dehydrated onions. Ideally a dehydration factory should handle only one type of onion over long periods, so as to avoid the necessity of cleaning down all the machinery and altering the grading and cutting setting etc. when changing from one vegetable to another.

COST ESTIMATION

Plant Capacity            1 MT/Day

Land & Building (2000 sq.mt.)    Rs. 93.75 Lac

Plant & Machinery                    Rs. 50.00 Lac

Working Capital for 1 Month    Rs. 31.03 Lac

Total Capital Investment          Rs. 2.08 Cr

Rate of Return                          18%

Break Even Point                      68%

CONTENTS

INTRODUCTION

PROPERTIES

USES OF DEHYDRATED ONIONS

B.I.S. SPECIFICATION

MARKET SURVEY

PRESENT MANUFACTURERS/EXPORTERS AND SUPPLIERS OF ONION POWDER

PROCESS OF MANUFACTURE

DEHYDRATION METHOD AND DEHYDRATOR

FLOW SHEET FOR ONION DEHYDRATION

PACKAGING AND STORAGE TECHNIQUE

PLANT LAYOUT FOR ONION POWDER

PRINCIPLES OF PLANT LAYOUT

PLANT LOCATION FACTORS

EXPLANATION OF TERMS USED IN THE PROJECT REPORT

SUPPLIERS OF RAW MATERIALS

SUPPLIERS OF PLANT AND EQUIPMENTS

PLANT & MACHINERY SUPPLIERS

100% EXPORT ORIENTED UNITS (100% EOU)

DETAIL OF PLANT & 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)