Detailed Project Report on Katha & Kutch

KATHA & KUTCH

[EIRI/EDPR/0564] J.C. 9159

INTRODUCTION

Katha and cutch are produced from the heart wood of  Acacia catechu. It is a common tree found in the tropical deciduous  and thorn forests of India. Katha is mainly used in betel leaf  (Pan) as  masticatory and valued for its catechin content.  Cutch,  the bye  product  of  Katha  industry is  largely  used  for  dyeing, colouring pulp in paper industry, water softening and in deep oil drilling operations.

Katha is obtained mostly by crystallization in cold from  the water extractives of the heartwood of Acacia catechu Willd., fam. Leguminosae  commonly  known  as  Khair tree,  which  is  widely distributed in India, form the north-west plains to eastwards  in Assam  and throughout the country, particularly in the  deciduous and  drier regions. The other species namely, A.  chundra  Willd and  A. catechuoides of Katha is carried out both, as a  cottage scale  industry in and around the organized sector.  The  general principle  of  extraction  of the  heartwood  and  of  consequent separation  of Katha (containing most of catechin)  from  cutch (Principally  catechu-tannic acid) is the same in cottage  sector as  well  as large scale units.  In the conventional  process  of Katha  manufacture followed by cottage sector of  the  industry, during  separation of the crystalline Katha, the soluble  cutch-tans,  a valuable by-product are neither effectively removed  nor recovered, except by a few.

Katha is one of the principal ingredients  used  in  the preparation of PAN from betel leaves, for chewing purposes  when, in  combination  with  lime,  it  gives  the  characteristic  red coloration.   In Ayruvedic and Unani systems of medicine, Katha is  used as astringent; cooling and digestive; useful in  relaxed conditions  of  throat,  mouth and gums; and also  in  cough  and diarrhoca.  Externally, it is employed as an astringent and as a cooling application to ulcers, boils and cruptions of the skin.

A  rational  specification  for  Katha,  fair   both   to manufacturers as well as consumers, should take into account  its main  constituent,  namely,  the  catechin.   Unfortunately,  the specifications  laid  down  so  far in  the  Prevention  of  Food Adulteration  (PEA) Rules, 1955, Ministry of Health and  Family Planning, Government of India have overlooked this very important aspect.  This has given rise to anomalous position.  Consequently the Central Committee for Food Standards (CCFS) requested ISI to under take the task of evolving rational standards for Katha. An Indian Standard specification (IS: 2962-1964*) for mulated as a result of collaborative testing over a number  of years paved the foundation  for testing.  It is hope that specification will be adopted shortly by the CCFS for the purposes of the PFA Rules, 1955.

This  specification  has been formulated on  the  basis  of collaborative  tests carried out on a large number of samples of Katha, obtained from the cottage sector as well as large  scale manufacturers, in the laboratories of Central Food  Technological Research  Institute (CSIR), Mysore; Italab Private  Ltd.  Mumbai; The public Analyst, Government of Uttar Pradesh, Lucknow; Central Drugs Laboratory, Kolkata; and the Indian Standards Institution. The co-operation received from them is gratefully acknowledged. The Limits for poisonous metals are the same as specified in the PFA Rules, 1955, Ministry of Health & Family Planning Government of India.

For the purpose of deciding whether a particular requirement of this standard is compelled with, the final value, observed  or calculated, expressing the result of a test or analysis, shall be rounded  off  in  accordance with IS: 2-1960!. The number of significant places retained in the rounded off value should be the same as that of the specified value in this standard.

COST ESTIMATION

Plant Capacity            2 MT/Day  

Land & Building (10,000 sq.mt.)    Rs. 2.62 Cr    

Plant & Machinery                    Rs. 1.26 Cr 

Working Capital for 3 Months    Rs. 82.19 Lac 

Total Capital Investment          Rs. 4.87 Cr 

Rate of Return                          46%

Break Even Point                      39%

CONTENTS

INTRODUCTION

PROPERTIES

BIS SPECIFICATION

RAW MATERIALS

MANUFACTURING PROCESS OF KATHA & CUTCH

PROCESS FLOW DIAGRAM

USES & APPLICATION

MARKET POSITION

CURRENT SCENARIO

NATURAL HABITAL & CLASSIFICATION OF ACACIA

LOCATION OF PLANT

ADDRESSES OF PLANT & MACHINERY

ADDRESSES OF RAW MATERIALS SUPPLIERS

IMPORTANT ADDRESSES

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)