Detailed Project Report on Bottling of Whisky

BOTTLING OF WHISKY

[EIRI/EDPR/1292] J.C.9954

INTRODUCTION

An Overview of the Indian Liquor Industry

The alcohol industry is very important for the government. It generates an estimated Rs. 16,000 crore per annum in spite of the fact that the per capita consumption of liquor in India is the lowest in the world. The total liquor industry is worth Rs. 2,000 crore. IMFL accounts for only third of the total liquor consumption in India. Most IMFLs are cheap and are priced below Rs. 200 per bottle. Alcohol sales proceeds account for 45% of the total revenue collection in the country. Whiskey accounts for 60% of the liquor sales while rum; brandy any vodka account for 17% 18% and 6% respectively. MNC’s share is only 10%and they have been successful only in the premium and super premium ranges. Post WTO the government may have opened India to foreign distilleries, but the duty has been increased from 222% to 464-706%.This is due to the fact that there is a 100% customs duty, 150%contravening duty, local taxes, distributor’s margin, retailer’s margin and publicity charges. The cost is finally borne by the consumer. Though the government claims that this is being done to protect the domestic liquor industry, the domestic industry accounts for 99% of the market share. This protectionist policy could prove to be counterproductive and lead to smuggling. As of now, only 45% of the sales are through legal channels and only 25% of this is duty paid for. Within India itself, the policy of alcohol retail differs form state to state. While some states like Maharashtra. Uttar Pradesh, and Tamil- Nadu have a liberal policy, come states like Haryana and Andhra

COST ESTIMATION

Plant Capacity            10,000 Bottles/Day

Land & Building (1.52 Acres)    Rs. 2.13 Cr

Plant & Machinery                    Rs. 2.35 Cr

Working Capital for 3 Months    Rs. 5.26 Cr

Total Capital Investment          Rs. 10.07 Cr

Rate of Return                          89%

Break Even Point                      24%

CONTENTS

INTRODUCTION

ALCOHOLIC BEVERAGE

DIFFERENT ALCOHOLIC DRINK

PROPERTIES

USES AND APPLICATIONS

MARKET SURVEY

SELECTED COMPANY WITH THEIR BRAND NAME

BIS SPECIFICATION

PRODUCTION PROCESS OF SCOTCH WHISKY

MANUFACTURING PROCESS

PROCESS FLOW SHEET

PLANT LOCATION FACTORS

EXPLANATION OF TERMS USED IN THE PROJECT REPORT

GENERAL PLANT LAYOUT 18

GMP/GHP CRITERIA FOR PLANT LAYOUT

EFFLUENT TREATMENT AND DISPOSAL

MANPOWER

PROJECT IMPLEMENTATION SCHEDULE

PRESENT MANUFACTURES

RAW MATERIALS

PLANT AND MACHINERY SUPPLIERS

RAW MATERIALS SUPPLIERS

LIST OF IMFL/LIQUOR MANUFACTURER IN INDIA

LIST OF ETP PLANT MANUFACTURER AND SUPPLIER

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)