PROJECT REPORT ON EGG POWDER -VALUE ADDED POULTRY PRODUCT
There are various forms of processed egg products available in the market; viz. liquid egg, frozen liquid egg, dried egg powder, egg chips, etc. And the demand for processed egg powder is rising every year. Processing and drying the egg liquid is an economical method of preservation. The egg powder has a long shelf life and can be stored or transported without the refrigeration. Now, it is willingly adopted by the food processors/ manufacturers due to its applicability and ease of storing. There are mainly three types of egg powder available, Whole Egg Powder, Egg Yolk Powder, and Egg Albumin Powder, etc.
The main application of egg powder is the use in the preparation of bakery and confectionery products. Also, it is replacing the use of fresh eggs in fast food/ restaurants food preparations. It is quite challenging to transport fresh eggs, as compared to the egg powder. There are a lot of chances of breaking eggs, and this direct wastage low sale of eggs. Also, for export purpose, the egg powder has very promising demand from the globe.
The global egg powder market divides into various segments, which helps in sharing the market on different parameters over product type, end use, distribution channel, and region. In India, the demand for egg powder is low. The main reasons behind this are radially available table eggs, eggs available at a cheaper rate, and low awareness among the people. The poultry business is growing at a CAGR of 6-8% and has a tremendous demand for poultry products globally. The egg powder industry has reached at 1700 Cr in the year 2019 and it will touch the figure of 2150 Cr. in between 2019-2023.
The rate of demand and supply of eggs is higher due to its taste, applications and nutritional benefit in its different forms. The consumption of eggs and eggs products is increasing each year. It shows that there are some considerable opportunities to enter in this business.
Investment Opportunities in Egg White and Yolk Powder Business
Egg powder is consumed on an oversized scale in food process industries, especially within the developed countries like Europe, the USA, Japan. The Indian egg powder factory is on its way to the Board for Industrial and money Reconstruction (BIFR). The worldwide egg powder market has been historically dominated by European markets. People of India commenced the export of this product around 3 years past. Demand for Indian egg powder had increase extravagantly. The new enterpriser watches out regarding smart quality raw materials, then he can get a smart market.
The manufacture of egg powder is a crucial section of egg consumption. It’s employed in-store merchandise, egg shampoo producing egg soups, baby food merchandise, etc. The demand for egg powder is over its offer. Therefore, the event in poultry trade can market the egg powder. There’s a decent scope for brand new entrepreneurs.
Global Market Scope
- The current market share of an Asian country to the enormous international market of $117 billion may be a meager 0.9 %, i.e., Rs 4,400 crore.
- India’s biological process supplement market is predicted to double within the next four years to over Rs 17,000 crore.
- Indian market possesses demand for egg powder around 2300 MT/ year.
- The expansion Rate is >15% to half-hour. As an entire establishing Egg Powder Unit is one in all the project that has the sensible prospect for the entrepreneurs to speculate.
- The global egg powder market reached a volume of around twenty,6047 Tons in 2019.
- One of the most important factors driving the worldwide demand for egg powder is its long time and movability. Egg powder features a shelf-life of 5 to 10 years and is non-perishable, once keep in an air-tight instrumentality.
- Based on the kind, the worldwide egg powder market has been metameric into whole egg powder, food egg powder, and white egg powder.
- Whole egg powder presently represents the most important section. Region-wise, the global egg powder market has been segmented into Europe, Asia-Pacific, North America, Middle East, and Africa, and America.
- Amongst these, Europe drew the largest market. On the premise of end-use, bakeshop drew the most important application section for egg powder. Bakeshop was followed by sauces, dressings & mixes.
Some of the international key players within the trade embody – Sanovo cluster, Weko Group, Eurovo S.R.L., old master Enterprises opposition., Rose Acre Farms, Inc., Kewpie Egg Corporation, etc.
Market Growth in India
- India’s egg product trade depends nearly absolutely on exports of egg powder, with the foremost markets being Europe and Japan. state and state account for nearly 1/2 of the country’s egg production.
- The largest producer of the egg is the state (Including Telangana) that produces thirty.5% of the complete egg production at intervals in the country.
- The state ranks second, producing 18.9% of the egg production. geographic area, state, and Haryana hold the following three ranks producing 6.5%, 6.4%, and 5.8% of the complete production severally.
- Gujarat ranks eleventh at intervals the country in terms of egg production, conducive concerning 2.1%.
Indian Major Players in This Business
- Balaji Foods & Feeds Ltd.
- Gayatri International Ltd.
- Indo-Dutch Proteins Ltd. Ovobel Foods Ltd.
- S K M Egg Products Export (India) Ltd.
- Western Foods Ltd.
Product and Applications
Egg is a highly nutritious product. Eggs are rich in protein, vitamins and minerals. The poultry sector has made tremendous progress in the last decade. It has grown into an organized and highly productive industry. Fresh eggs have a very limited shelf life. To improve the shelf life and for ease of storage and usage egg powder is very convenient. It is quite stable at room temperature and can be stored over longer period. The manufacture of egg powder is an important segment of egg consumption. Egg powder is one of the most common products in poultry industry in the country. The technology for egg powder is available with CFTRI Mysore. Compliance with PFA Act for such a unit is essential.
Industry Profile and Market Assessment
Broadly speaking eggs are now considered as a vegetarian diet. It is consumed by both the nonvegetarians as well as moderate vegetarians. Eggs find their adoption in regular diet because of its nutritional qualities. Transportation and storage of fresh eggs is problematic. The conversion of eggs into dried egg powder takes care of both these drawbacks and is economical also. Egg powder has a major market in Defense organizations, Bakeries, Government canteens and in such areas where transportation is difficult such as hills.
Manufacturing Process & Know How
The process of manufacturing is simple and standardized. Manufacture of dried egg powder starts with breaking of egg and removing of shells. The mixture is then filtered and stored in tanks at about 4* C. The mixture is then taken to tubular heater system wherein it is dried at about 65*C for 8 t0 10 minutes and it is filtered and passed to high pressure spray drier with the help of high pressure pump. The resultant material is dry and and in the form of powder. This is then packed in poly lined boxes. The average yield is around 80%.
Know how is available with Central Government research Laboratories CFTRI Mysore. The machinery is all indigenously available.
The production capacity envisaged is 240 MTA per year 300 days and two shifts basis working.
Plant and Machinery
The main plant and machinery required comprise
- Egg Breaker. -4no.
- Centrifuge – 2nos.
- – 2nos
- Storage Tanks – 4 nos
- Feed Pump -2nos.
- Tubular Heater. – 1 no
- Balance Tank – 4 nos
- Feed Pump – 2 nos
- High Pressure Pump – 2 nos.
- High Pressure Spray Drier – 1 no.
- Cyclone with exhaust and Fan – 1no
- Packing unit – 1 no.
The total cost of machinery is estimated to be Rs.65.00 lakhs.
The unit will also require miscellaneous assets such as furniture, fixtures, storage facilities etc. the total cost of these is estimated to be Rs. 10.00 lakhs.
The total requirement of power shall be 75 HP, the unit will need 2500 lits of water daily.
Raw material and Packing Material
The basic raw material for the unit is fresh eggs and the daily requirement is 20,000 nos. Packing material like poly lined boxes, polythene sheets; box strapping’s etc shall also be required.
On an average the raw material cost has been estimated to be Rs.67.20 lakhs at rated capacity. At 65% capacity in 1st year the cost works out to Rs 43.68 lakhs.
Land and Building
For smooth operation of the unit, it will require 800 sq. mts of open land and a built up area of 500 sq. mts. The total cost of land and building is estimated at Rs. 14.90 lakhs.
Manpower
For smooth functioning of the unit the requirement of man power is expected to be around 18 persons.
| Sales person | self |
| Skilled Workers | 4 |
| Semi skilled workers | 4 |
| Helpers | 8 |
| Machine Operator | 2 |
The annual salary bill is estimated to be around Rs.5.58 lakhs.
Sales Revenue: (100% capacity)
Selling price varies depending on the product mix quality. An average price of Rs 65,000/- per tonne has been taken the annual income at installed capacity of 240 tonnes is Rs 156.00 lakhs.
Cost of Project
| Sales | Rs. lakhs |
| Land & Building | 14.90 |
| Plant & Machinery | 10.00 |
| Other assets | 0.70 |
| Contingencies | 8.00 |
| P & P expenses. | 10.00 |
| Margin money | 3.40 |
| Total | 111.30 |
Means of Finance
| Promoters Contribution | 35.30 |
| Term Loan | 76.00 |
| Total | 111.30 |
Profitability: (60%capacity)
| Rs. lakhs | |
| Sales | 101.40 |
| Raw material | 43.68 |
| Salary | 5.58 |
| Utilities | 3.90 |
| Stores & Spares | 1.80 |
| Repairs & Maintenance | 2.40 |
| Selling expenses | 10.14 |
| Administrative expenses | 2.50 |
| Depreciation | 12.50 |
| Interest on T.L | 9.80 |
| Interest on W.C | 0.84 |
| Cost of production | 93.14 |
| Profit | 8.26 |
Requirement of Working Capital
| Margin | W.C | Margin Money | ||
| Raw material & packing | 15 days | 30% | 1.80 | 0.55 |
| Stock of finished goods | 15 days | 25% | 2.40 | 0.60 |
| Working expenses | 1 month | 100% | 1.25 | 1.25 |
| Sale on credit | 15 days | 25% | 3.90 | 1.00 |
| Margin money for W.C | 3.40 |
Break Even point
48.75%
Machinery Suppliers
- M/S Techno Equipment, Pareek Street Girgaum Mumbai 400 004.
- M/s G R Engg. P Ltd.Worli, Mumbai 400 018.
- M/S Apurva Engg Works, Borivili, Mumbai 400 098
- M/S FMC Technology Hong Kong Ltd. Bhubaneshwar Housing Society Pashan Road Pune 411 008.
- M/S Flavourire Foods & Services P Ltd. Manas Bhavan, RNT Marg, Indore 452 008.
Project Report on Egg Powder – Value added poultry product
Compiled & Shared by- Team, LITD (Livestock Institute of Training & Development) Image-Courtesy-Google Reference-On Request.
