PROJECT REPORT

OF
ALCOHOLIC DRINKS BOTTLING PLANTS
PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Alcoholic Drinks Bottling Plants.

The objective of the pre-feasibility report is primarily to facilitate potential

entrepreneurs in project identification for investment and in order to serve his
objective; the document covers various aspects of the project concept
development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement. We
can also prepare project report on any subject as per your requirement.]

Lucknow Office: Sidhivinayak

Building , 27/1/B, Gokhlley Marg, Lucknow-226001
Delhi Office: Multi-Disciplinary Training
Centre, Gandhi Darshan Rajghat, New Delhi 110002
Email: [email protected]
Contact: +91 7526000333, 444, 555
 PROJECT AT GLANCE

1 Name of Proprietor/Director XXXXXXXX

2 Firm Name XXXXXXXX
3 Registered Address XXXXXXXX
4 Nature of Activity XXXXXXXX
5 Category of Applicant XXXXXXXX
6 Location of Unit XXXXXXXX
7 Cost of Project 24.78 Rs. In Lakhs
8 Means of Finance
i) Own Contribution 2.48 Rs. In Lakhs
ii) Term Loan 15.30 Rs. In Lakhs
iii) Working Capital 7.00 Rs. In Lakhs
9 Debt Service Coverage Ratio 3.21
10 Break Even Point 0.30
11 Power Requiremnet 20 KW
12 Employment 10 Persons

Various machinery such as

13 Major Raw Materials bottle filing, capping,
pasteurization unit &
labelling unit
14 Details of Cost of Project & Means of Finance

Cost of Project
Particulars Amount in Lacs
Land Owned/Leased
Building & Civil Work Owned/Leased
Plant & Machinery 15.00
Furniture & Fixture 0.50
Other Misc Assets 1.50
Working Capital Requirement 7.78
Total 24.78
Means of Finance
Particulars Amount in Lacs
Own Contribution 2.48
Term Loan 15.30
Working capital Loan 7.00
Total 24.78
1. INTRODUCTION

Alcoholic beverages are a large group of beverages that contain varying amount of
alcohol. Example of some of alcoholic beverages are Beer, wine, distilled spirits such
as brandy, whiskey, rum, gin, cognac, vodka, tequila etc.

They are produced from sugar containing liquid by alcoholic fermentation. Sugar,
fermentable by yeast are present as such or are generated from raw materials by
processing i.e. by hydrolytic cleavage of starch and dextrin, yielding simple sugar.
the nutritional energy value of ethanol is high 7kcal/g or 29kJ/g.

Beer making or brewing uses germinated barley (malt), hops, yeast and water. In
addition, of malt, other starch containing material is also added e.g., wheat, unmalted
cereal called adjuncts (barley, wheat, corn and rice), starch flour, starch degradation
products and fermentable sugar. Hops and aroma compound formed during
fermentation are responsible for aroma, flavor and bitter taste of beer. Bottle filling of
beer proceeds from fermentation tank to seminar fully automatic bottling process
followed by pasteurization at 62 ᵒC for 20 minutes.

Wine is the fermented produced from grapes. Wine involves longer fermentation
process than beer and also long aging process resulting in alcohol content of 9% -
16% ABV. Sparkling wines can be made with second fermentation.

A distilled beverage, spirit or liquor is an alcoholic beverage produced by distillation

(concentration by distillation) ethanol is produced by mean of fermenting grain.
Unsweetened, distilled, alcoholic beverages that have an alcohol content of at least
20% ABV are called spirits. For the most common distilled beverages, such as
whiskey and vodka, the alcohol content is around 40%. Vodka, whiskey, gin, Brandy,
Soju, baijiu, tequila are examples of distilled beverages.
 TYPE ALCOHOL CONCENTRATION

Beer 3 – 15%

Wine 8 – 17%

Fortified wine 15 -22%

Spirits 15 – 98%

Fruit juice <0.1%

Cider 4 – 8%

TYPICAL ABV RANGES FOR DIFFERENT ALCOHOL

The concentration of alcohol in a beverage is usually stated as the percentage of

alcohol by volume (ABV, the number of ml of pure ethanol in 100 ml of beverage) or
as proof. Proof is twice the percentage of alcohol by volume at 60 degrees
Fahrenheit (e.g., 80 proof = 40% ABV).
 2. PRODUCT DESCRIPTION

2.1 USES OF ALCOHOL BOTTLING PLANT

The bottling plant is used for bottling of different alcoholic beverages and liquors
such as

i. Bottling of beer

ii. Bottling of wine

iii. Bottling of spirits such as Whiskey, Gin, Rum, Brandy etc.

2.2 RAW MATERIAL REQUIREMENT FOR ALCOHOL BOTTLING PLANT

Various machinery such as bottle filling, capping, pasteurization unit and labelling
unit are required in alcoholic beverage bottling plant.

2.3 MANUFACTURING PROCESS

BOTTLE WASHING

Bottles are rinsed with filtered water to remove impurities and cleared of labels.
Sometimes carbon dioxide injected into bottles to reduce oxygen level. Empty Bottle
Inspector (EBC) used to check the bottles for good washing otherwise rejects it.

FILLING AND CAPPING

washed bottles are then sent to filling machine which fills the bottles with Liquor. A
few inert gases can be injected on the top to disperse the oxygen. Full Bottle
Inspector (FBI) check bottles for underfilling or overfilling. Capper applies bottle caps
and sealed the bottles.

PASTEURIZATION

Filled bottles are then pasteurized at 1400F for 2-3 minutes. This helps to stops the
growth of yeast that remains in the beer after packaging.

LABELLING
After pasteurization labels are applied. It should include the batch number, lot
number, date & time of bottling, expiry dates etc.

BOX PACKING
Bottles are then packed into boxes and sent to the warehouse and ready for sale.

COLD STORAGE
To avoid all and any chemical or biochemical reaction, it is advisable to keep the
products at temperatures below -18 ºC. The fluctuations of temperature in the
storage chambers may impair the quality of the products, as well as to reduce their
useful life.
 BOTTLE WASHING

FILLING AND CAPPING

PASTEURIZATION

LABELLING AND BOX

PACKAGING

COLD STORAGE

FLOW CHART OF BOTTLING PROCESS FOR ALCOHOLIC DRINKS

3. PROJECT COMPONENTS

3.1 LAND/ CIVIL WORK

An area of almost 1500-2000 Sq. ft. would be suitable for bottling plant. This space
would be required for raw materials storage mainly, production, packaging, storage
of finished goods, and administrative work.
We have not considered the cost of Land purchase & Building Civil work in the
project. It is assumed that land & building will be on rent & approx. rental of the same
will be Rs. 20000-25000 per month.
3.2 PLANT AND MACHINERY

1. BOTTLE WASHING/CLEANING/ RINSING MACHINE

The machine uses rotary glass bottle brushing machine for inside and outside
brushing. The bottle is soaked in water before brushing. The bottle cleaning machine
is suitable for water, juice, beer and wine bottles. The machine is suitable for
different size bottle when with same bottle necks.

2. BOTTLE FILLING AND CAPPING MACHINE

The machine incorporates filling and capping machine. It is widely used for Wine,
beer, vodka, soya sauce, vinegar and so on. The machine adopts plain structure and
vacuum air breathing principle makes filling easy and simple. It has precise filling
level, no bottle break and leakage , easy operate and maintain. It consist of
electromagnetic capping heads, with burden discharge function, make sure minimum bottle crash
during capping.
 3. PASTEURIZATION MACHINE

This machine adopts the principle of pasteurization, biologically sterilizes the bottled
alcohol. The qualified alcohol maintains a continuous and slow speed on the
conveyor of Sterilizer. After the treatment of several temperature zones, certain
spraying temperature and certain sterilizing time, Vegetative microorganisms are
killed and the purpose is achieved for extending the time of preservation.

FIG: pasteurization temperature – 62 – 82ᵒC ; Pasteurization Temperature – 30

seconds to 10 minutes; Power 3 kW; Pressure 0.4 – 0.5 Mpa; Price 5 – 10 lacs INR

4. LABELLING MACHINE

The machine is used for alcohol bottle labelling machine. The machine
consists of touch screen control panel that can control bottle conveying
speed. The labelling device controlled by air cylinder.
 5. COLD ROOM
This is probably the simplest freezer used for freezing the liquors and alcohols, when
working at lower scale. It is constituted by a freezing chamber in which the products
are introduced. The insertion of the products may be accomplished by movable
shelves provided with small wheels. The shelves may be loaded and unloaded
manually. The product is placed on trays, and these ones are taken to the shelves.
The air passes on the product already packed at the temperature range from -30ºC
to -40ºC at a speed from 1.5 to 6.0 m/s, depending on the product. The high speed
provides a good transference of heat.

FIG: Temperature – (-50ᵒC) to 20ᵒC; Capacity 100 – 1000 ton; Power 7 kW; Price
5 – 12 lacs INR
4. LICENSE & APPROVALS

1. Obtain a Trade License from the local authority.

2. The next step is to apply for MSME Udyam Online registration and get the
GST (Goods and Service Tax) certification.
3. Apply for a “No-objection Certificate” from the Pollution Control Board.
4. Food Safety and Standard Authority of India (FSSAI) License
5. BIS and AGMARK certification if required
6. Food Safety and Food Quality Certifications Such as ISO 22000: 2018,
HACCP CERTIFICATION.
7. NOC from Pollution Control Board.
PROJECTED BALANCE SHEET (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Liabilities
Capital
Opening Balance 4.40 7.35 10.21 14.72
Add:- Own Capital 2.48
Add:- Retained Profit 4.17 6.95 9.36 12.51 15.85
Less:- Drawings 2.25 4.00 6.50 8.00 10.50

Closing Balance 4.40 7.35 10.21 14.72 20.07

Term Loan 13.60 10.20 6.80 3.40 -
Working Capital Limit 7.00 7.00 7.00 7.00 7.00
Sundry Creditors 1.65 3.09 3.76 6.01 7.08
Provisions & Other Liabilities 0.75 1.00 2.50 3.50 5.00
TOTAL : 27.40 28.64 30.27 34.63 39.15
Assets
Fixed Assets ( Gross) 17.00 17.00 17.00 17.00 17.00
Gross Depriciation 2.53 4.67 6.50 8.06 9.38
Net Fixed Assets 14.48 12.33 10.50 8.94 7.62

Current Assets
Sundry Debtors 3.40 5.06 6.11 7.26 8.52
Stock in Hand 6.39 8.14 9.87 11.77 13.83
Cash and Bank 1.14 1.86 2.78 4.65 5.19
Loans and advances 2.00 1.25 1.00 2.00 4.00
TOTAL : 27.40 28.64 30.27 34.63 39.15
PROJECTED PROFITABILITY STATEMENT (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Capacity Utilisation % 50% 55% 60% 65% 70%
SALES
CEILING FAN 78.38 101.18 122.25 145.30 170.33

Total 78.38 101.18 122.25 145.30 170.33

COST OF SALES
Raw material cost 49.50 61.71 75.24 90.09 106.26
Electricity Expenses 1.92 2.53 2.76 3.00 3.23
Depreciation 2.53 2.15 1.83 1.56 1.32
Wages & labour 8.40 9.24 10.16 11.18 12.30
Repair & maintenance 0.78 1.01 1.22 1.45 1.70
Consumables 1.96 2.53 3.06 3.63 4.26
Packaging cost 1.18 1.52 1.83 2.18 2.55
Cost of Production 66.26 80.69 96.11 113.09 131.63
Add: Opening Stock - 3.92 5.06 6.11 7.26
Less: Closing Stock 3.92 5.06 6.11 7.26 8.52
Cost of Sales 62.35 79.55 95.06 111.93 130.37
GROSS PROFIT 16.03 21.63 27.19 33.36 39.96
GROSS PROFIT RATIO 20.45% 21.37% 22.24% 22.96% 23.46%
Salary to Staff 3.36 3.70 4.07 4.47 4.92
Interest on Term Loan 1.50 1.32 0.95 0.58 0.20
Interest on working Capital 0.77 0.77 0.77 0.77 0.77
Rent 3.00 3.15 3.31 3.47 3.65
Selling & Administration Expenses 3.14 5.06 7.33 8.72 10.22
TOTAL 11.77 14.00 16.43 18.01 19.76
NET PROFIT 4.26 7.63 10.76 15.36 20.20
Taxation 0.09 0.68 1.41 2.84 4.35
PROFIT (After Tax) 4.17 6.95 9.36 12.51 15.85
NET PROFIT RATIO 5.32% 6.87% 7.65% 8.61% 9.30%
PROJECTED CASH FLOW STATEMENT (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
SOURCES OF FUND
Own Margin 2.48
Net Profit 4.26 7.63 10.76 15.36 20.20
Depriciation & Exp. W/off 2.53 2.15 1.83 1.56 1.32
Increase in Cash Credit 7.00 - - - -
Increase In Term Loan 15.30 - - - -
Increase in Creditors 1.65 1.44 0.68 2.24 1.08
Increase in Provisions & Other liabilities 0.75 0.25 1.50 1.00 1.50

TOTAL : 33.96 11.46 14.77 20.16 24.10

APPLICATION OF FUND
Increase in Fixed Assets 17.00
Increase in Stock 6.39 1.75 1.73 1.90 2.06
Increase in Debtors 3.40 1.66 1.05 1.15 1.25
Increase in loans and advances 2.00 - 0.75 - 0.25 1.00 2.00
Repayment of Term Loan 1.70 3.40 3.40 3.40 3.40
Drawings 2.25 4.00 6.50 8.00 10.50
Taxation 0.09 0.68 1.41 2.84 4.35
TOTAL : 32.83 10.74 13.84 18.29 23.56

Opening Cash & Bank Balance - 1.14 1.86 2.78 4.65

Add : Surplus 1.14 0.72 0.93 1.87 0.54
Closing Cash & Bank Balance 1.14 1.86 2.78 4.65 5.19
CALCULATION OF D.S.C.R

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

CASH ACCRUALS 6.70 9.10 11.18 14.07 17.17

Interest on Term Loan 1.50 1.32 0.95 0.58 0.20
Total 8.20 10.42 12.13 14.65 17.37

REPAYMENT
Instalment of Term Loan 1.70 3.40 3.40 3.40 3.40
Interest on Term Loan 1.50 1.32 0.95 0.58 0.20

Total 3.20 4.72 4.35 3.98 3.60

DEBT SERVICE COVERAGE RATIO 2.56 2.21 2.79 3.68 4.82

AVERAGE D.S.C.R. 3.21
 REPAYMENT SCHEDULE OF TERM LOAN
Interest 11.00%
Closing
Year Particulars Amount Addition Total Interest Repayment Balance
ist Opening Balance -
1st month 15.30 15.30 - - 15.30
2nd month 15.30 - 15.30 0.14 - 15.30
3rd month 15.30 - 15.30 0.14 - 15.30
4th month 15.30 - 15.30 0.14 - 15.30
5th month 15.30 - 15.30 0.14 - 15.30
6th month 15.30 - 15.30 0.14 - 15.30
7th month 15.30 - 15.30 0.14 0.28 15.02
8th month 15.02 - 15.02 0.14 0.28 14.73
9th month 14.73 - 14.73 0.14 0.28 14.45
10th month 14.45 - 14.45 0.13 0.28 14.17
11th month 14.17 - 14.17 0.13 0.28 13.88
12th month 13.88 - 13.88 0.13 0.28 13.60
1.50 1.70
2nd Opening Balance
1st month 13.60 - 13.60 0.12 0.28 13.32
2nd month 13.32 - 13.32 0.12 0.28 13.03
3rd month 13.03 - 13.03 0.12 0.28 12.75
4th month 12.75 - 12.75 0.12 0.28 12.47
5th month 12.47 - 12.47 0.11 0.28 12.18
6th month 12.18 - 12.18 0.11 0.28 11.90
7th month 11.90 - 11.90 0.11 0.28 11.62
8th month 11.62 - 11.62 0.11 0.28 11.33
9th month 11.33 - 11.33 0.10 0.28 11.05
10th month 11.05 - 11.05 0.10 0.28 10.77
11th month 10.77 - 10.77 0.10 0.28 10.48
12th month 10.48 - 10.48 0.10 0.28 10.20
1.32 3.40
3rd Opening Balance
1st month 10.20 - 10.20 0.09 0.28 9.92
2nd month 9.92 - 9.92 0.09 0.28 9.63
3rd month 9.63 - 9.63 0.09 0.28 9.35
4th month 9.35 - 9.35 0.09 0.28 9.07
5th month 9.07 - 9.07 0.08 0.28 8.78
6th month 8.78 - 8.78 0.08 0.28 8.50
7th month 8.50 - 8.50 0.08 0.28 8.22
8th month 8.22 - 8.22 0.08 0.28 7.93
9th month 7.93 - 7.93 0.07 0.28 7.65
10th month 7.65 - 7.65 0.07 0.28 7.37
11th month 7.37 - 7.37 0.07 0.28 7.08
12th month 7.08 - 7.08 0.06 0.28 6.80
0.95 3.40
4th Opening Balance
1st month 6.80 - 6.80 0.06 0.28 6.52
2nd month 6.52 - 6.52 0.06 0.28 6.23
3rd month 6.23 - 6.23 0.06 0.28 5.95
4th month 5.95 - 5.95 0.05 0.28 5.67
5th month 5.67 - 5.67 0.05 0.28 5.38
6th month 5.38 - 5.38 0.05 0.28 5.10
7th month 5.10 - 5.10 0.05 0.28 4.82
8th month 4.82 - 4.82 0.04 0.28 4.53
9th month 4.53 - 4.53 0.04 0.28 4.25
10th month 4.25 - 4.25 0.04 0.28 3.97
11th month 3.97 - 3.97 0.04 0.28 3.68
12th month 3.68 - 3.68 0.03 0.28 3.40
0.58 3.40
5th Opening Balance
1st month 3.40 - 3.40 0.03 0.28 3.12
2nd month 3.12 - 3.12 0.03 0.28 2.83
3rd month 2.83 - 2.83 0.03 0.28 2.55
4th month 2.55 - 2.55 0.02 0.28 2.27
5th month 2.27 - 2.27 0.02 0.28 1.98
6th month 1.98 - 1.98 0.02 0.28 1.70
7th month 1.70 - 1.70 0.02 0.28 1.42
8th month 1.42 - 1.42 0.01 0.28 1.13
9th month 1.13 - 1.13 0.01 0.28 0.85
10th month 0.85 - 0.85 0.01 0.28 0.57
11th month 0.57 - 0.57 0.01 0.28 0.28
12th month 0.28 - 0.28 0.00 0.28 -
0.20 3.40
DOOR TO DOOR 60 MONTHS
MORATORIUM PERIOD 6 MONTHS
REPAYMENT PERIOD 54 MONTHS
 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN
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