meat processing unit -ksidc

7/21/2019 Meat Processing Unit -KSIDC

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PROJECT PROFILE FOR SETTING UP A MEAT PROCESSING PLANT

INTRODUCTION

This profile envisages the establishment of a plant for the processing of cattle meatwith a capacity of 1000 tonnes per annum. The total investment requirement isestimated at 10.00 Crores, out of which Rs 3.50 crores is required for plant andmachinery. Poultry meat is the fastest growing sector of Indian animal production.The plant will create employment opportunities for about 90 persons

There is a large potential for setting up of modern slaughter facilities anddevelopment of cold chains in meat and poultry processing sector. India has severalintegrated mechanized slaughterhouse-cum meat processing plants and has facilitiesfor slaughtering, processing, freezing packing and cold storage of meat. Refercontainers are easily available for factory stuffing of frozen meat. Some of theexporters have started backward integration for rearing of animals wherein theyprovide veterinary health coverage and concentrated feed in the catchment area.Skilled and technical manpower for slaughtering, processing, packaging etc. of meatis adequately available in the country.

MARKET & DEMAND ANALYSIS

The product envisaged here is mainly for export. Thus to estimate the potentialmarket for the product, it was found more appropriate to rely on export marketrather than local demand. The meat industry is the collective of diverse businessesthat together supply much of the food energy consumed by the world population.

Even though food processing is among the largest industries, India ranks fifth interms of production, consumption, export and expected growth. India has enormousgrowth potential from its current status of being the world's second largest foodproducer to be the world's number one producer.

Meat processing industry also is of enormous significance for India's developmentbecause of the vital linkages and synergies that it promotes. Meat processing covers aspectrum of products from sub-sector comprising animal husbandry and poultryfarms, and bulk frozen meat, packaged meat, ready-to-eat processed meat products.While India has an abundant supply of meat, the meat processing industry is stillnascent.

Industry analysts say that the demand for meat products is bound to increase as theyforesee a very good future for the take-away ready-to-eat dishes being sold in thesuper markets which are opening outlets in big metros. There is a rapidly increasingdemand for processed food (meat) caused by rising urbanisation and income levels.This is supported by number of people preferring to live as nucleus family, ratherthan joint families. Rise in employment with more of adult working ratio andspending lesser time in the kitchen. In addition to prime factors like, change in



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consumer eating habits as well as rising demand for health, wellness and lifestyleproducts, together with inflated take-home packages, and rise in family incomeprovides tremendous growth opportunities for the meat sector.

Much of the meat sold retail continues to be sold at wet markets, most of which areto be found in open-air market places or streets. These markets provide a venue atwhich the customer can buy live poultry or freshly slaughtered meat produce directfrom local farmers. However, these markets have gradually been removed frommany cities, while supermarkets and hypermarkets are now beginning to take theirplace.

Processed meat products are mainly sold through new retail formats such assupermarkets and hypermarkets. Organised supermarket chains are gainingsignificance as sellers of processed meats, particularly for frozen and chilledproducts.

This suits the increasingly sophisticated and demanding needs of urban consumerswith rising incomes. People are now able to buy more expensive cuts of meat thanbefore, leading to greater demand for variety and quality of produce.The increasing availability of processed and packaged foods has also added to thegeneral growth in people's interest in food, and all of these factors add to thegrowing demand for more variety and better quality of meat products. Sharp growthin consumer demand has prompted meat producers to introduce greater efficienciesinto their organisations.

PROJECT PARAMETERS

Proposed Location

The envisaged plant is proposed to be located at Kozhikode District

Land

Land required- The envisaged plant will require a total land area of 7,500 m2, ofwhich 3000 m2 will be covered by factory and office buildings, stores, etc

Proposed Capacity

This profile envisages the establishment of a plant for the processing of cattle meatwith a capacity of 1000 tonnes per annum. The plant is assumed to start productionat 50% of its rated capacity in the first year and increase its production to 60% in thesecond year.

Major Raw Materials

The major raw materials required for cattle meat processing and packing plant arecattle, empty can and salt.



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Raw Materials Qty

Cattle (head) 6250 Nos

Empty can (Pcs) 20,00,000

Table salt (Tonnes) 1

Packing material(carton)

500000

The utilities required for the plant are electricity and water.

UtilitiesRequirement

Qty.

Electricity(Connected Load)

100 KVA

Water 70,000 m3

Plant & Machinery

The total cost of equipment and machinery required to produce 1000 tonnes ofprocessed meat per annum is estimated to be about Rs 3.50 crores. The list ofmachinery and equipment is given below:

Description Qty.

Electric hoists 4

Stunning box 1Stunning gun 1

Platforms for cattle processing 7

Electric saw for cutting and splitting 4

Pneumatic knife 1

Hooks for various purposes 260

Pneumatic spreader 1

Sterilizer for processing tools 5

Processing and inspection tables 13

Pipe rail with supporting

construction

650m

Rail balances up to 500kg 2

Cattle balance up to 2000kg 1

Floor balance up to 200kg 1

Machine for Washing and cleaningof stomach

1

Devise for casing processing 1

High effect pumps for washing 2



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ManpowerThe manpower requirement of the plant will be 90 persons.

Implementation PeriodThe proposed plant is envisaged to be completed within one year.

MANUFACTURING PROCESS

The cattle supplied to the slaughterhouse are weighed on a cattle balance and thenunloaded along the reception ramp into pens for rest.

The cattle undergo a medical check up for the presence of any disease before they areslaughtered. They are stunned by a gun in a box and afterwards slaughtered andremoved to the bleeding line where blood is collected in a basin. The carcasses areloaded by electric hoist from the slaughter line to the processing line. Loading,spreading of rear legs and dehiding are carried out on a three level plat form, andfinal dehiding done on a two level plat form by means of a pneumatic knife.

The horns are removed by electric saw, and the heads inspected and washed. Thebrisket is opened by electric saw, the entails inspected and extracted. Stomach andcasings are transported for cleaning. Carcasses are split into halves, which arewashed and inspected. The meat is cut on tables in a cutting room by means ofelectric or hand operated saws and knives. Then, the meat is washed to removeblood and kept in the chilled room.

Pumps for discharging manure 2

Laboratory equipment 1 set

Stainless Tank 2

Gear Pump 1

Balance 20

Seaming Micrometer 2Seaming Wire Gauge 2

Seaming Scale 2

Seam Band Saw Frame 2

Seam Band Saw 10

Vacuum Can Tester 2

Hand Can Tester 2

Saccharimeter 2

Inspection Bar 2

Thermometer 15

Salinometer 2Boiler 1



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The meat is then dressed and superficial fat is removed before processing furtherafter trimming and chopping. The bones are removed and the meat is then cut touniform size of sliced chunks of 1.25 cm thickness. The meat is then soaked into saltwater for giving a salty taste and to kill the microorganisms. It is weighed and filledinto cans and seaming process will be carried out. After seaming the cans are fed intoa jet-spraying can washer for cleansing with a neutral cleanser. Then, the seamedcans undergo sterilization immediately. The by products of cattle meat processingindustry represent a substantial part of the sales value of production derived fromthe slaughter cattle. By products include edible fat, non-edible fat, hides, blood, bonemeal, glue etc. The efficient utilization of by products is essential for the economicoperation of a processing plant.

The envisaged plant needs waste water treatment plant that uses physico-chemicalsystem in order to abate the environmental pollution. The treatment process involvessettling, filtration, addition of flocculates and mixing, and floatation. The sludge fromthe treatment plant is used as fertilizer.

PROJECT COST

The total investment cost of the project including working capital is estimated at Rs.10 Crs. The major breakdown of the total initial investment cost is shown in below:

Total Cost(Rs. Lakhs)

Land (2 Acres @ Rs. 30 lakhs/Acres) 60.00

Land Development 5.00

Building and Civil Work (3000 Sq. Mt @ Rs. 10000

/Sq. Mt)

300.00

Plant Machinery and Equipment 350.00

Utilities(Electrification & plumbing) 20.00

Misc Fixed assets 17.00

Consultancy Charges 5.00

Prel & Pre Operative Expenses 93.40

Contingency 22.72

Margin Money for Working Capital 126.88Total Investment cost 1000.00

PROPOSED MEANS OF FINANCE

Rs. LakhsPromoter Contribution 500.00

Term Loan from KSIDC 500.00Total 1000.00



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SALES TURNOVER

Based on the present world market an ex-factory price of Rs 280000.00 per tone isadopted for financial analysis. Since the project is envisaged for export purpose, it isrecommended that the factory should engage itself in exporting the productsdirectly.

FINANCIAL INDICATORS

Optimum Utilization (% of installed capacity) 80%Sales Turnover (Rs. lakhs) 2240.00

Profit before interest, depreciation & tax (Rs. lakhs) 583.69

Cash Profit (after interest) (Rs lakhs ) 349.12

Net Profit (PAT) (Rs. lakhs) 295.43

Debt Equity Ratio 1:1

DSCR (average) 4.45

Break Even Point % 29.41

IRR (%) 30

Pay Back period (Years) 3 YrsMoratorium 1 Year Implementation

Period + 1 Year

CONCLUSION

The project requires capital investment of medium scale and can create mediumemployment opportunity. The plant will have a backward linkage effect with thelivestock sector. The project is financially viable with an internal rate of return (IRR)of 30 %.

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Kerala

State

Industrial

Development

Corporation

Ltd.

Disclaimer :The findings contained in this Project Profile are based on the initial information collated through primary andsecondary research, which is indicative in nature. Reference herein to any specific commercial product, process,service by trade name, trademark, manufacturer, or otherwise, does not constitute or imply its endorsement,recommendation, or favoring by KSIDC or any entities thereof.

meat processing unit -ksidc

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