Pan Masala is a balanced mixture of betel leaf with lime, areca nut, clove, cardamom, mint, tobacco, essence and other ingredients. It is an agricultural product with herbal properties, also available in hygienic pack and pouches. It acts as a mouth freshener and unlike other Western synthetic pan masala made with chemical and petroleum ingredients, the Indian pan masala is safe. But excessive use may have adverse effect. The ingredients in pan masala vary widely, depending on personal taste and region. One version of pan masala, guthka, includes tobacco, which may be flavored or treated with various additives. As a result, sales are restricted or banned in some regions, and there is some confusion about pan masala, with some people dismissing all mixtures as unhealthy, while others distinguish between those with tobacco and without it. Available in brands in India like 'Raj Darbar', 'Paan Bahar', 'Goga', 'Rajnigandha', 'Tulsi', the paan masala is consumed by all age groups and social classes. The active chemical compounds of betel nut are alkaloids called arecaine and arecoline, arecaidine, arecolidine, guracine (guacine), guvacoline, etc. which is comparable to nicotine due to their stimulating and mildly intoxicating characteristics. The culture of paan eating rose to the zenith in North India as a mark of cultural custom and sophistication, especially in Lucknow and the North-east. In most of the Hindu religious traditions, the raw areca nut along with the betel leaf is offered to the deity as an offering.

 

Uses and Applications

Pan Masala is widely used for removing bad odour to impart a pleasant feeling, used for scenting the breath in order to impart a pleasant feeling, for serving the guests and friends and in the parties and functions. It is also used as substances for tobacco chewing and smoking. It can be used in the Hotel and restaurants as well.

 

Market Survey

Paan is consumed by an estimated 200-400 million people, mainly Indo-Asians and Chinese. India is the largest consumer of betel nut, or what we call the paan in the world. It’s not without reason that India tops the list of smokeless tobacco users in the world with nearly 83 per cent consumers. With its ban in most of the cities still the fact remains that the gutkha and pan masala industry in India is huge pegged at anywhere between Rs 15,000 to Rs 20,000 crore. There is also a tax impact as a result of the ban. Popular pan masala brand Rajnigandha, produced by Dharampal Satyapal (DS) Group, has 65 per cent market share. Dharampal Satyapal, with sales of Rs 1,600 crore, is headquartered in Noida. Pan Parag made by Kot­hari Products has 11 per cent share in tobacco-sce­nted chewing pan masalas. The company had revenue of Rs 630 crorer in FY2010. It declined to co­mment if the brand’s non-availability would impact its market share. The production ban on most of the big brands has led to a rise in demand for lesser known brands and such brands are commanding a premium of over 200 per cent at present.

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Table of Contents

1.    District Profile & Geotechnical Site Characterization

1.1.    General

1.2.    Physical Characteristics

1.3.    Climate &Rainfall

1.4.    Map

1.5.    Transportation and Communications

1.6.    Economy and Industry

2.    Introduction

2.1.    Active Compounds in Paan Masala

2.2.    What is Masala?

2.3.    Difference between Gutkha and Pan Masala

3.    Properties

4.    Uses

5.    B.I.S. Specifications

6.    Market Survey

6.1.    Central Excise and Customs Duty Structure on Other Tobacco Products in India

6.2.    Excise/Custom Duty Collected from Tobacco Products in India

6.3.    MPCE Class-wise Per 1000 Distribution of Households

7.    Export & Import Statestics of India

7.1.    Export Statistics Data Pan Masala

8.    Manufacturing Process of Sada Pan Masala

8.1.    Basic Raw Material Required

8.2.    Formulation

8.3.    Process Details

8.4.    Making of Lime and Katha Solution

9.    Process Flow Digram of Sada Pan Masala

10.  Manufacturing Process of Meetha Pan Masala

10.1.Formulation

10.2.Process Details

10.3.Making of Lime and Katha Solution

11.  Process Flow Diagram of Meetha Pan Masala

12.  Manufacturing Process of Zarda

12.1.Basic Raw Materials Required

12.2.Formulation

12.3.Process

13.  Process Flow Diagram of Zarda

14.  Suppliers of Plant & Machinery

14.1.Blade Type Cutter

14.2.Impact Pulverizer

14.3.Mixer

14.4.Tray Dryer

14.5.Kneading Machine

14.6.Shifter

15.  Suppliers of Raw Material

15.1.Betel Nut

15.2.Katha( Acacia Catechu)

15.3.Lime

15.4.Pepper Mint

15.5.Rose Petals

15.6.Sugar Powder

15.7.Tobacco Leaves

15.8.Cardamom

15.9.Cinnamon

16.  Product, Plant Machinery & Raw Material Photgraphs

16.1.Impact Pulverizer

16.2.Supari Blade Type Cutter

16.3.Shifter Dry

16.4.Betel Nuts

16.5.Katha (Acacia Catechu)

16.6.Lime

16.7.Pepper Mint

16.8.Rose Petal

16.9.Sugar Powder Tobacco Leaves

16.10.   Cardamom

16.11.   Cinnamon

17.  Plant Layout

18.  Quotation of Plant, Machinery and Equipments from Supplier

 

PROJECT FINANCIALS

·         Project at a Glance

Annexure

·         Assumptions for Profitability workings ….…………………………………………....................... 1

·         Plant Economics…………………………………………………………………………….................... 2

·         Production Schedule……………………………………………………………………….................... 3

·         Land & Building…………………………………………………………………………….................... 4

§  Factory Land & Building

§  Site Development Expenses

·         Plant & Machinery………………………………………………………………………….................... 5

§  Indigenous Machineries

§  Other Machineries (Miscellaneous, Laboratory etc.)

·         Other Fixed Assets………………………………………………………………………….................... 6

§  Furniture & Fixtures

§  Pre-operative and Preliminary Expenses

§  Technical Knowhow

§  Provision of Contingencies

·         Working Capital Requirement Per Month………………………………………………................. 7

§  Raw Material

§  Packing Material

§  Lab & ETP Chemical Cost

§  Consumable Store

·         Overheads Required Per Month and Per Annum ……………………………………................. .8

§  Utilities & Overheads (Power, Water and Fuel Expenses etc.)

§  Royalty and Other Charges

§  Selling and Distribution Expenses

·         Salary and Wages ……………………………………………………………………………................. 9

·         Turnover Per Annum ………………………………………………………………………................ 10

·         Share Capital…………………………………………………………………………………................ 11

§  Equity Capital

§  Preference Share Capital

•        Annexure 1            ::        Cost of Project and Means of Finance

•        Annexure 2            ::        Profitability and Net Cash Accruals

§  Revenue/Income/Realisation

§  Expenses/Cost of Products/Services/Items

§  Gross Profit

§  Financial Charges    

§  Total Cost of Sales

§  Net Profit After Taxes

§  Net Cash Accruals

 

•        Annexure 3            ::        Assessment of Working Capital requirements

§  Current Assets

§  Gross Working Capital

§  Current Liabilities

§  Net Working Capital

§  Working Note for Calculation of Work-in-process

 

•        Annexure 4            ::        Sources and Disposition of Funds

•        Annexure 5            ::        Projected Balance Sheets

§  ROI (Average of Fixed Assets)

§  RONW (Average of Share Capital)

§  ROI (Average of Total Assets)

 

•        Annexure 6            ::        Profitability ratios

§  D.S.C.R

§  Earnings Per Share (EPS)

§  Debt Equity Ratio

 

•        Annexure 7            ::        Break-Even Analysis

§  Variable Cost & Expenses

§  Semi-Variable/Semi-Fixed Expenses

§  Profit Volume Ratio (PVR)

§  Fixed Expenses / Cost 

§  B.E.P

 

•        Annexure 8 to 11   ::        Sensitivity Analysis-Price/Volume

§  Resultant N.P.B.T

§  Resultant D.S.C.R

§  Resultant PV Ratio

§  Resultant DER

§  Resultant ROI

§  Resultant BEP

 

•        Annexure 12          ::        Shareholding Pattern and Stake Status

§  Equity Capital

§  Preference Share Capital

 

•        Annexure 13          ::        Quantitative Details-Output/Sales/Stocks

§  Determined Capacity P.A of Products/Services

§  Achievable Efficiency/Yield % of Products/Services/Items 

§  Net Usable Load/Capacity of Products/Services/Items   

§  Expected Sales/ Revenue/ Income of Products/ Services/ Items   

 

•        Annexure 14          ::        Product wise domestic Sales Realisation

•        Annexure 15          ::        Total Raw Material Cost

•        Annexure 16          ::        Raw Material Cost per unit

•        Annexure 17          ::        Total Lab & ETP Chemical Cost

•        Annexure 18          ::        Consumables, Store etc.

•        Annexure 19          ::        Packing Material Cost

•        Annexure 20          ::        Packing Material Cost Per Unit

•        Annexure 21          ::        Employees Expenses

•        Annexure 22          ::        Fuel Expenses

•        Annexure 23          ::        Power/Electricity Expenses

•        Annexure 24          ::        Royalty & Other Charges

•        Annexure 25          ::        Repairs & Maintenance Expenses

•        Annexure 26          ::        Other Manufacturing Expenses

•        Annexure 27          ::        Administration Expenses

•        Annexure 28          ::        Selling Expenses

•        Annexure 29          ::        Depreciation Charges – as per Books (Total)

•        Annexure 30          ::        Depreciation Charges – as per Books (P & M)

•        Annexure 31          ::        Depreciation Charges - as per IT Act WDV (Total)

•        Annexure 32          ::        Depreciation Charges - as per IT Act WDV (P & M)

•        Annexure 33          ::        Interest and Repayment - Term Loans

•        Annexure 34          ::        Tax on Profits

•        Annexure 35          ::        Projected Pay-Back Period And IRR