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ESSENCE EXTRACTION FROM CURRY LEAVES BUSINESS IN UGANDA

By: wmutenza0 comments

Introduction

This business idea is for essence extraction from curry leaves. Essence adds flavor and taste to food. For one to enter the market, it is recommended that s/he targets supplying to supermarket chains, grocery/retail shops and restaurants. The business idea aims at production of 46,800 bottles of essence annually. The revenue potential is estimated at US $ 702,000 annually. The total capital investment for the project is US $ 4,700.

 

Plant Capacity

The profiled plant has a minimum capacity of 150 vials per day and this is an output of a single 8-hour work shift.

 

Technology and Production process

Essence is extracted from the curry leaves with the essence extractor or distillation set then the liquid is filled in bottles and sealed. The room should be moist to conserve the fresh curry leaves.

Scale of investment

Capital Investment Requirements in US$

Capital Item Units Qty @ Amount
Distillation Set No 1 1000 1,000
Working bench No 10 370 3,700
Total       4,700

Production and Operating Costs

Cost Item Units @/ day Qty/ day Pdn Cost/ day Pdn cost/ mth Pdn Cost/ Year1
Direct costs3:            
Fresh curry leaves Kgs 1.8 1,000 1,800 46,800 561,600
Packaging materials Pcs 0.07 100 7 182 2,184
Subtotal         46,982 563,784

General costs (Overheads)

Labour 300 3,600
Utilities 400 4,800
Selling and Distribution 100 1,200
Administrative expenses 100 1,200
Shelter 100 1,200
Depreciation (Asset write off) Expenses 97.92 1,175
Sub-total 1,098 13,175
Total Operating Costs 48,080 576,959
  1. Production is assumed for 312 days per year.
  2. Depreciation assumes 4 year life of assets written off at 25% per year for all assets.
  3. A production Month is assumed to have 26 days.

Project product Costs and Price Structure in US $

Item Qty / day Qty/yr Unit cost Pdn/yr UPx TR
Essence Bottles 150 46,800 12.33 576,959 15 702,000

Profitability Analysis Table in US$

Profitability Item Per day Per Month Per Year
Revenue 2,250 58,500 702,000
Less: Production and Operating Costs 1,849 48,080 576,959
Profit 401 10,420 125,041

Government facilities and Incentives

The government encourages agro-based investments because they add value. The tax policy is quite favorable for the industrialists e.g. if you export, you enjoy reimbursement tax.

Market analysis

The essence extraction from curries’ leaves is a rural micro enterprise activity and has good demand in domestic as well as international market. Areas of concentration would include restaurants, hotels, retail/grocery stores and tourist centers.

Sources of Supply of equipments

All equipments can be got in Uganda

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