MUSHROOM CULTIVATION AND PROCESSING ... - smallB

MUSHROOM CULTIVATION AND PROCESSING
Introduction:
Mushroom is a simple form of fungus with high nutritive and medicinal value. Mushrooms are rich
in high quality protein having around 60 – 70 percent digestible amino acids. It is also rich in
vitamins like B.C, D, K and minerals like calcium, phosphorous, potassium, iron, copper and high
fibre content. Mushrooms have a low quantity of carbohydrate and fats high quantity of water.
Research studies have shown that it is an ideal food for people suffering from diabetics, heart
ailments, hypertension and anemia.
The Product:
Mushroom have been considered as a delicacy the world over. The oyster mushroom (pleurotus)
which is mostly cultivated and marketed in the North East. Oyster mushrooms are easier to grow
and less cumbersome to process. The climatic conditions in the North East is favorable for its
growth. The product is available mainly in two forms i.e. fresh and dried. The proposed unit can
would sell 2000 kgs of fresh mushroom and 3000 kg as dried mushroom.
Market Potential:
The North Eastern Region including Sikkim has a good market for mushrooms. Apart from
domestic consumption, the hotels, resorts which are coming up in a big way in the region are
potential buyers of the product.
Plant Capacity:
Working Days/Year : 300
Annual production : 2000 kg of fresh mushroom &
3000 kg of dry mushroom
Raw Materials:
Qty.
Amount (Rs)
Paddy straw 150 qtls @ Rs 1000/qtl. 1,50,000
Spawn 25,000 @ Rs 10/- 2,50,000
Saw dust 40 qtl. @ Rs 100/- 4,000
Wheat flour 25 qtl @ Rs 1200/- 30,000
Quick lime 20 qtls. @ Rs 150/- 3,000
Packing material L.S. 9,000
Rs. 4,46,000
=======
Process:
The major process steps are –
Cultivation of mushroom:
• Substrate preparation,
• Steam pasteurization/hot water treatment of substrate.
• Spawning of substrate.
• Filling of spawned substrate in trays and polythene sheet enclosures.
• Incubation of spawned substrate in trays & enclosures.
• Harvesting and storage of fruit bodies.
Processing:
• Cleaning and grading.
• Separation of mushroom for drying.
• Packing of fresh mushroom for marketing.
• Drying of mushrooms.
• Packing of dried mushrooms.
• Marketing.
Machinery:
Sl.No. Items Value (Rs)
1. Dryer - 1 No. @ Rs 30,000 30,000
2. Big drum - 4 Nos. @ Rs 7,000/- 28,000
3. Trays – 50 Nos. @ Rs 500/- 25,000
4. Shaft cutter – 3 Nos. @ Rs 5000/- 15,000
5. Poly sheet – 3000 Mtrs. @ Rs 20/- 60,000
6. Sprayers, thermometer, boards – 4 Nos. 8,000
Total 1,75,000
37

Location:
Urban and semi-urban areas in NER including sikkim preferably near to the market area where
cultivation is possible and consumers are suitably located nearby so that fresh mushroom from
the unit can be easily marketed.
Total Capital Requirement:
The total capital requirement including fixed capital and working capital is estimated at Rs
5,46,380 as follows. Of this, the project cost comprising fixed capital and margin money on
working capital is Rs 4,64,233 lakhs.
A. Fixed Capital: (Rs in lakh)
Land
Own
Site development 25,000
Building (750 sq.ft.) 2,00,000
Machinery 1,75,000
Miscellaneous fixed assets 30,000
Preliminary and pre-operative expenses
_15,000
Total (A) 4,20,000
=======
B. Working Capital:
Raw materials & Packing material 15 days 22,300
Finished goods 15 days 34,800
Working expenses 1 month 10,280
Receivables 15 days 59,000
Total (B) 1,26,380
======
Total (A)+(B) 5,46,380
Note: Working capital may be financed as:
Bank Finance (65%) ….. Rs 82,147
Margin Money (35%) ….. Rs 44.233
Rs 1.26.380
========
Capital Cost of Project:
Fixed capital : 4,20,000
Margin Money for Working Capital : 44,233
4,64,233
Means of Finance:
Promoter’s contribution (35%) Rs 1,62,482
Term Loan (65%) Rs 3,01,751
Rs 4,64,233
==========
Operating Expenses:
The annual operating expenses are estimated at Rs 7,07,700 as given below:
(Rs in lakhs)
1. Raw materials: 4,37,000
2. Packing materials 9,000
3. Utilities 15,360
4. Wages & Salaries 1,08,000
5. Other overheads 12,000
6. Selling expenses @ 5% on annual sales 59,000
7. Interest on term loan@ 13.25% 39,982
8. Interest on Bank Finance for
Working Capital@12% 9,858
9. Depreciation @10% __ 17,500
7,07,700
=======
Operating profit 4,72,300
38

Sales Realization:
Sl.No. Particulars Qty. Rate (Rs) Value (Rs)
1. Fresh Mushroom 2000 Kg. 140/- 2,80,000
2. Dry Mushroom 3000 Kg. 300/- 9,00,000
TOTAL 11,80,000
Profitability :
Based on the sales realization of Rs 11.80,000 and the operating expenses, the profit
would be Rs 4,72,300 per year. This works out to a return on investment of 86%. The plant will
break even at 19% of the rated capacity.
Highlight:
The major highlights of the project are as follows:
Total capital requirement : Rs 5,46,380
Promoter’s contribution : Rs 1,62,482
Annual sales realization (70% cap.) : Rs 11,80,000
Annual operating expenses (70% cap.) : Rs 7,07,700
Annual profit (pre-tax) : Rs 4,72,300
Pre-tax Return on Sales : 40%
Break Even Point : 19%
No.of persons employed : 5
Suppliers of Machinery
List of Machinery Suppliers:
1. M/s B. Sen & Berry & Co.
65/11, Rothak Road,
Karol Bagh,
New Delhi – 110 005
2. M/s Narag Corporation
P-25 Connaught Place
Below Madrass Hotel,
New Delhi – 110 001
List of Raw Materials Suppliers:
1. State Institute of Rural Development (SIRD)
Jorabat, Guwahati
2. Shanti Sadhana Asharam
Basistha, Guwahati
3. M/s Gardeners Corporations
6, Doctor Lane,
Post Box No. 229
New Delhi – 110 001
3. Regional Research Laboratory,
Jorhat.
4. M/s K.S.J. Foods & Service (P) Ltd.
7/87, Vishnu Prasad Mehant Road,
Vile Parle,
Mumbai – 400 057
39