Introduction
This business idea is for making curry powder. Curry powder is a mixture of spices of widely varying composition. It adds taste to food and stimulates secretion of gastric juices. Curry powder is an item required in every household and thus has a good market potential both in urban and rural areas. Supply to supermarket chains, grocery/retail shops, restaurants and hotels are recommended for one to enter the market.
The business idea aims at production of 2,600 kg of curry powder per month. The revenue potential is estimated at $ 218,400 per year with a net profit of 12% and payback period of 4 months. The total capital investment for the project is NGN 3,543,000 .
Plant Capacity
The profiled plant has a minimum capacity of 100 kg of curry powder per day.
Production Process
The production process involves toasting the spices, mixing the various spices, grinding the spices and packaging.
Capital Investment Requirements (CBN exchange rate -$1 to 416.04 NGN) as of 2 feb 2022.
| Capital investment item | Units | Qty | Cost in
NGN |
Cost in USD |
| Spice Grinders | No. | 1 | 3,500 | 8.412 |
| Sealing machine | No. | 1 | 10,000 | 24.036 |
| Storage Containers | No. | 2 | 2,000 | 4.807 |
| Total cost of machinery | 15,500 | 36.054 |
Production and operating costs
| Cost Item | Units | @
NGN |
Qty/
day |
Pdn cost/ month in NGN | Pdn cost/ year
In NGN |
Pdn cost/ year
In USD |
| Fenugreek Seeds | kg | 1000 | 3 | 60,000 | 720,000 | 1730.603 |
| Caraway Seeds | kg | 500 | 3 | 30,000 | 360,000 | 865.301 |
| Cinnamon Powder | kg | 300 | 5 | 30,000 | 360,000 | 865.301 |
| Cummin Seeds | kg | 500 | 5 | 50,000 | 600,000 | 1442.169 |
| Ground mace | kg | 500 | 5 | 50,000 | 600,000 | 1442.169 |
| Tumeric powder | kg | 200 | 10 | 40,000 | 480,000 | 1153.735 |
| Packaging materials | dozen | 200 | 5 | 20,000 | 240,000 | 576.868 |
| Sub-total | 280,000 | 3,360,000 | 8076.147 |
General costs (overheads)
| Cost Per Month
NGN |
Cost Per Year
NGN |
Cost Per Year
USD |
|
| Utilities(water and power) | 2000 | 24,000 | 57.687 |
| Labour | 5000 | 60,000 | 144.217 |
| Rent | 2000 | 24,000 | 57.687 |
| Distribution costs | 5000 | 60,000 | 144.217 |
| Sub –total | 14000 | 168,000 | 403.807 |
| Total Operating Costs | 294,000 | 3,528,000 | 8,479.954 |
Project product costs and Price structure
| Item | Qty /day | Qty/yr | @ | Pdn cost /yr
NGN |
Pdn cost /yr
USD |
TR
In NGN |
TR
In USD |
| Curry powder | 60 | 14,400 | 500 | 3,360,000 | 8076.147 | 7,200,000 | 17,306.028 |
Profitability Analysis
| Profitability Item | Per day | Per month | Per Year
NGN |
Per Year
USD |
| Revenue | 30,000 | 600,000 | 7,200,000 | 17,306.028 |
| Less production and
operating Costs |
14,000 | 294,000 | 3,528,000 | 8,479.954 |
| Profit | 16,000 | 320,000 | 3,672,000 | 8826.074 |
- Production is assumed for 240 days per year.
- Depreciation assumes 2 year life of assets written off at 50% per year for all
- assets.
- A production Month is assumed to have 20 days.
Market Analysis for curry powder
The idea is a rural micro enterprise activity and has good demand in domestic as well as international markets. Areas of concentration would include restaurants, hotels, retail/grocery stores, tourist centers, parking yards, etc.
