Coffee Manufacturing Unit Project Report

SMB ENVIRONMENTAL PROJECTS PVT. LTD.
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PIONEERING GREEN TECHNOLOGIES
TECHNOLOGIES
Technical
Know-how - A Gateway to Prosperity
A PROJECT REPORT
ON
COFFEE MANUFACTURING UNIT

Prepared By
S.A. AZAD ( alias Sk Burhaan )
B.Sc. Tech ( Chem Tech ) , DNIIT, DGM, DFM,
Ex. Sr. Manager HPCL ( Project Planning)

CEO : SMB Environmental Projects (P) Ltd.
For
Mr. FAKHRUDDIN HARDWAREWALA,
CA, ALGHURAIR FOODS, DUBAI (UAE)
Tel:- 04-3120150 PABX No. 04-3939633
Email : Fakhruddin.H@al-ghurair.com
1
13 / 14, Seva Sadan Building, CA Road, NAGPUR 440 001,
Phone : +91 7263 259052, Mobile : +91 98602 40852

Email: smbenvprojects@gmail.com smbprojects@yahoo.co.in
Web : http://www.smb-project-consultants.com/

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A PROJECT REPORT
ON
COFFEE
MANUFACTURING UNIT
S.No.
CONTENTS
Page No.
1.
INTRODUCTION
2.
QUALITY STANDARDS
3.
MARKET POTENTIAL
12
4.
BASIS & ASSUMPTIONS
13
5.
PRODUCTION & TECHNICAL ASPECTS
16
6.
PROJECT FACILITIES
29
7.
COST SUMMARY
& OPERATTING EXPENSES
38
8.
FINANCIAL ANALYSIS/ CASH FLOW
42
9.
PLANT & MACHNERIES SUPPLIERS
45
Last Page of the Report
-------
45
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1.0 INTRODUCTION
1.1 BACKGROUND :
Alghurair Foods, Dubai ( UAE ) is one of the highly reputed food chain group
of companies in the United Arab Emirates ( UAE), having its own manufacturing
and distribution network for domestic and export market. Along with other food
and FMCG products, it is now proposing to establish its own in house Coffee
making unit with a view to meet the growing demands of this region as well as
to cater to the export market.
For this project the group represented by CA Mr Fakhruddin Hardwarewala has
approached
SMB
Environmental
Projects
Pvt.
Ltd
Absolute
Technologies, a Nagpur based premier Industrial Consultancy organization to

prepare a Techno- Economical Feasibility cum Project Report. Accordingly, a
detailed Techno-commercial Project Report is prepared and presented as a
compact planning document to initiate and implement this time bound
project, keeping in view the specific conditions of the location and the client
1.2 LOCATION OF THE PROPOSED PROJECT :
The proposed plant would come up on a leased plot of land in Dubai. The
location is carefully selected being close to the coast of Dubai for ease of
transporting imported raw material, which is likely to be imported from East
African countries e.g. Kenya.
The location will also be ideal for logistic
advantage for dispatching the finished products in packed and bulk packaging to
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the domestic distributors, retail outlets by employing transportation routes like

road and through the sea port for exporting to Gulf Cooperation Countries
( GCCs)
1.3 PRODUCT MIX :
Primarily, the finished product from this unit shall be Arabica variety coffee
beans and powders, packed in 250 gms tins and packs.
. Contd 2.0 Quality Standards
2. QUALITY STANDARDS
2.1 GENERAL:
It is generally estimated that the quality of the finished product in coffee
depends:
- 40% on the field/plantation
- 40% on primary processing
- 20% on secondary/export processing
Unfortunately the majority of investment, especially in the years since
liberalization, has been made in the export processing. By that stage it is too
late to have a major positive impact on the quality. The need is to address the
issues of quality improvement both at plantation and primary processing level.
There is a significant value-addition to be gained from the wet processing of
coffee, in order to produce what is called washed or fully washed coffee. (See
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This requires a certain investment, but according to the quality produced, it is

estimated that this can provide a return on investment (ROI) in the order of 30
35% on the cost of installing and operating a small coffee processing unit
(CPU). This return is derived from the premiums at which the washed coffee can
be sold compared to traditional primary processing methods, and should apply
for both arabica and robusta. It should also enable better prices to be paid to
farmers for their coffee
2.2 QUALITY ASSURANCE MEASURES:

Nevertheless, The project envisages a full fledged quality control laboratory with
competent staff and a systematic Quality Assurance Program shall be organised
in the proposed plant, with the following major features:
1. Coffee Green Beans will be evaluated at each reception station. Following
basic standards shall be observed:
-
Beans must be free from foreign materials.
Should have less than 1% immature fruits
2. Moisture content and appearance shall be tested

3. Size distribution shall be checked as per standards.
4. Defects per Bean Size shall be minimized.
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5. Sample roaster shall be employed and for accurate evaluation of cup

characteristics.
6. Cup scores shall be tabulated and used for design mixes.
7. Also, a complete Quality Monitoring Process shall be built up to ensure the
quality not only from the stage of green beans processing but even at the
suppliers plant which are supplying the Green Beans. The following stage
wise Q.A. program shall be followed starting from the suppliers shop,
transportation and then in the coffee processing unit.
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2.3. COFFEE GRADES:

The following Coffee Grades are proposed to be manufactured in the plant:
Name
Screen
Nos
Beans
Arabica
Mild Coffee Between Clean, bold
Plantation
17 & 18 uniform size
AA
Arabica
Grade
Sieve
Standard
Description Remarks
---
90% by
weight
standing in
7 mm sieve
Superior
flavour,
Connoisseur's
strength and choice
aroma
90% by
Good, clean, ---
Between Bold, greenish- ----
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grey, with light

Plantation
coating, display
(Washed)
16 & 17 results and
Plantation A
clean
preparation
Plantation
PB
---
Plantation B 15
Round beans
Clean
garbled, No
flats (AB)
subject to a
tolerance of
2% by
weight
3% by
weight of
Peaberry
Triage
Small beans
Clean
garbled.
Does not
contain PB
subject to
tolerance of
2% by
weight. Can
contain 3%
by weight of
triage
Not less
than 75%
standing on
a sieve of 6
mm. Not
more than
Good Aroma -1.5%
passing
through a
5.5 mm
sieve
Includes light,
boat-shaped
and spotted
Between beans (less than
Plantation C
13 & 14 a quarter of
bean surface)
No black or
damaged beans
Arabica
15
Cherry
(Unwashed)
Arabica
Cherry AB
soft cup,
weight
good body
standing in
of fair
6 mm sieve
acidity
Superior
flavour,
Strength &
Aroma
--
75% by
weight.
Consists of
Standing on
triage and
a 5.5 mm
small whole
sieve, but
Good Aroma -beans of
100%
prescribed
weight.
sieve size
Standing on
5 mm sieve
Mixture of A & Clear

B
garbled. No
PB subject
to a
tolerance of
2% by
weight.
Not less
Natural
than 90%
Aroma
by weight
standing on
6 mm sieve.
Not more
than 1.5%
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--

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Arabica
Cherry PB
--
Arabica
Cherry C
Light, boat
shaped and
spotted beans
(less than 1/4 of
Between beam surface)
13 & 14 Does not
contain more
than 2%
blacks/brown
and/or bits
Round beans
Contains
3% by
weight of
triage
passing
through
5.50 mm
sieve
No flats
(AB)
subject to
tolerance of
2% by
weight.
Contains
3% by
weight of
triage
3% by
weight of
Peaberry
Triage
Natural
Aroma
--
Consists of
Triage and
small whole
beans of
prescribed
sieve size
75%
standing on
5.5 mm
Natural
sieve, 100%
Aroma
by weight
standing on
5 mm sieve
--
2.4 DESCRIPTION OF VARIOUS FINISHED COFFEE GRADES :

-
Arabica Mild Coffee : Plantation AA Between 17 & 18 Clean, bold

uniform size : 90% by weight standing in 7 mm sieve Superior flavor,
strength and aroma Connoisseur's choice
Arabica Plantation (Washed)
Plantation A between 16 & 17 Bold, greenish-grey, with light coating,

display results and clean preparation: 90% by weight standing in 6
mm sieve good, clean, soft cup, good body of fair acidity
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Plantation PB: Round beans Clean garbled, No flats (AB) subject to a

tolerance of 2% by weight 3% by weight of Pea berry Triage Superior
flavor
Green Coffee Beans
Roasted Coffee beans

-
Strength & Aroma: Plantation B 15 Small beans Clean garbled. Does

not contain PB and is subject to tolerance of 2% by weight. Can
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contain 3% by weight of triage not less than 75% standing on a dieve

of 6 mm. Not more than 1.5% passing through a 5.5 mm sieve good
Aroma
-
Plantation C Between 13 & 14: Includes light, boat-shaped and spotted

beans (less than a quarter of bean surface) No black or damaged
beans Consists of triage and small whole beans of prescribed sieve size
75% by weight. Standing on a 5.5 mm sieve but, 100% weight.
Standing on 5 mm sieve Good Aroma
Arabica Cherry (Unwashed) Arabica Cherry AB 15 Mixture of A & B

Clear garbled. No PB subject to a tolerance of 2% by weight. Contains
3% by weight of triage not less than 90% by weight standing on 6 mm
sieve. Not more than 1.5% passing through 5.50 mm sieve Natural
Aroma
Arabica Cherry PB: Round beans No flats (AB) subject to tolerance of

2% by weight. Contains 3% by weight of triage 3% by weight of Pea
berry Triage Natural Aroma
Arabica Cherry C Between 13 & 14: Light, boat shaped and spotted
beans (less than 1/4 of beam surface) does not contain more than 2%
blacks/brown and/or bits Consists of Triage and small whole beans of
prescribed sieve size 75% standing on 5.5 mm sieve, 100% by weight
standing on 5 mm sieve Natural Aroma
Market Potential follows

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3.0 MARKET POTENTIAL

Approximately seven million tons of green coffee is produced worldwide each
year. The prices in the world market have recovered since the absolute lows of
2001/02. According to the ICO, global consumption has been growing by over
2% per annum in the 8 years 2000 2008. Even with the recent recession,
coffee consumption has shown itself to be resilient, and rising incomes in many
new consuming markets show promise of continuing strong growth in the years
ahead.
At present, the world depends for about 50% of total supply on just two origins,
Brazil and Vietnam. With consumption expected to rise by around 1 million tons
in the coming 6 8 years, it is anticipated that the coffee market will give
efficient producers good returns in the coming years.
The critical issue will be the capacity to remain competitive as a producer. This
will depend on two main factors:
a) Productivity, as coffee faces competition from food crops and bio-fuels for
available land and other resources.
b) Quality, as the market seeks to meet the growing need for better quality
coffees against a background of rising costs in most producing countries.
Basis & Assumptions follows..
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4.0 BASIS & ASSUMPTIONS

4.1 PRODUCTION FACILITES :
The plant will have a capacity of 24 TPD processing of green coffee beans, to be
constructed on a 10,000 sq meter plot of leased land. It shall comprise, one or
more units of green bean separators, huller, processing unit, vibrating screens
graders, vacuum or pressure type de-stoners, gravity separators, graders
machines and packing machines for tin and pouch packaging.
4.2 WORKING :
The plant is expected to work on round the clock basis, 24 hours and 300 days
in a year. Rest of the period will be utilized for maintenance activities. Required
redundancy has been built in the plant design so that spare equipment are
available to ensure continuous and un-interrupted production even when some
of the equipment are taken off from the service for routine maintenance.
4.3 FINANCE:
The ratio of own : loan funds is taken as 1 : 4. The owners share of fixed and
working capital shall be arranged from the own internal resources. The balance
funding shall be arranged from mid term, six year loan bearing an interest @
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5.5%. Total overall investment including the borrowings should not exceed 4
million Euros equivalent of 18.6 million AED ( 1 AEd = 0.215 Euro)
4.4
AVAILABILITY OF RAW MATERIAL & UTILITIES :
The raw materials i.e Arabica variety of coarse quality coffee beans shall be
imported mostly from East African countries like Kenya up to the Dubai sea port
in containers. From the sea port, the raw materials shall be transported by road
to the production plant.
The power and water shall be provided by Dubai Electricity and Water Authority
( DEWA) by installing a captive substation. The DEWA also provides sufficient
backup in case of power failure and therefore, there is no need to provide any
power back up facilities. The cost of power at present is 30 fils / KW.
4.5 IMPLEMENTATION SCHEDULE :
1.
Registration & other Formalities
2.
Acquisition of Leased land
3.
Preparation of Detailed Engg & Design: 3 month
4.
Arrangement of Finance :
5.
Building construction
3 months
6.
Arrangement of Power
1 month
7.
Procurement of Plant & Machinery:
4 month
8.
Erection of Plant & Machinery
3 month
9.
Appointment of staff & labor
1 month
10.
Trial production &

:
1 month
Trouble - shooting
1 month
1 month
2 months
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CONCURRENT AND SEQUENTIAL ACTIVITIES :

Out of above listed activities, in order to minimize the overall implementation time, the
activities can be divided and pursued into following concurrent and sequential project
phases.
Phases
Phase I
Group of concurrent activities

Registration, land Acquisition, Detailed Engg.
And Arrangement of Finance
Phase II
Total Time
3 months
Building Construction, Procurement and Erection

Of Plants & Machineries, Arranging Water & Power
Next 4 months
Supplies
Phase III Commissioning, Trail production, Recruitment of
Next 2 months
Manpower, Commercial Production & Marketing
Thus, the total time required for the commencement of commercial

Production of Coffee in Tins and pouches will be around 9 months.
PRODUCTION & TECHNICAL ASPECTS follows
5.0 PRODUCTION & TECHNICAL ASPECTS

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5.1 COFFEE MANUFACTURING ( From the Seed to the Cup ) :

5.1.1 Planting
A coffee bean is actually a seed. When dried, roasted and ground, it is used to
brew
coffee. Coffee seeds are generally planted in large beds in shaded
nurseries.
After sprouting, the seedlings are removed from the seed bed to be planted in
individual pots in carefully formulated soils. They will be watered frequently and
shaded from bright sunlight until they are healthy enough to be permanently
planted. Planting often takes place during the wet season, so that the soil
around the young trees remains moist while the roots become firmly
established. 5.1.2. Harvesting the Cherries
Depending on the variety, it will take approximately 3 or 4 years for the newly
planted coffee trees to begin to bear fruit. The fruit, called the coffee cherry,
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turns a bright, deep red when it is ripe and ready to be harvested. In most
countries, the coffee crop is picked by hand, a labor-intensive and difficult
process, though in places like Brazil, where the landscape is relatively flat and
the coffee fields immense, the process has been mechanized. Whether picked
by hand or by machine, all coffee is harvested in one of the two ways:
Strip Picked - the entire crop is harvested at one time. This can either be done
by machine or by hand. In either case, all of the cherries are stripped off of the
branch at one time.
Selectively Picked - only the ripe cherries are harvested and they are picked
individually by hand. Pickers rotate among the trees every 8 - 10 days,
choosing only the cherries which are at the peak of ripeness. Because this kind
of harvest is labor intensive, and thus more costly, it is used primarily to
harvest the finer arabica beans.
In most coffee-growing countries, there is one major harvest a year; though
in countries like Colombia, where there are two flowerings a year, there is a
main and secondary crop. A good picker averages approximately 100 to 200
pounds of coffee cherry a day, which will produce 20 to 40 pounds of coffee
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beans ( about 20% by weight). The day's harvest (cherries) is then combined
and
transported
to
the
processing
plant.
5.1.3. Processing the Cherries

Once the coffee has been picked, processing must begin as quickly as possible
to prevent spoilage.
Depending on location and local resources, coffee is
processed in one of the two ways.

A. The
Dry
Method
This is the age-old method of processing coffee and is still used in many
countries where water resources are limited. The freshly picked cherries
are simply spread out on huge surfaces to dry in the sun. In order to
prevent the cherries from spoiling, they are raked and turned throughout
the day, then covered at night, or if it rains, to prevent them from getting
wet. Depending on the weather, this process might continue for several
weeks for each batch of coffee. When the moisture content of the cherries
drops to 11 percent, the dried cherries are moved to warehouses where
they are stored
B. The
Wet
Method
In wet method processing, the pulp is removed from the coffee cherry
after harvesting and the bean is dried with only the parchment skin left
on.
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There are several actual steps involved. First, the freshly harvested
cherries are passed through a pulping machine where the skin and pulp is
separated from the bean. The pulp is washed away with water, usually to
be dried and used as mulch. The beans are separated by weight as they
are conveyed through water channels, the lighter beans floating to the
top, while the heavier, ripe beans sink to the bottom. Next they are
passed through a series of rotating drums which separate them by size.
Arabica Plantation - washed

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After separation, the beans are transported to large, water-filled fermentation

tanks. Depending on a combination of factors -- such as the condition of the
beans, the climate and the altitude -- they will remain in these tanks for
anywhere from 12 to 48 hours. The purpose of this process is to remove the
slick layer of mucilage (called the parenchyma) that is still attached to the
parchment; while resting in the tanks, naturally occurring enzymes will cause
this layer to dissolve. When fermentation is complete the beans will feel rough,
rather than slick, to the touch. At that precise moment, the beans are rinsed by
being sent through additional water channels. They are then ready for drying.
5.1.4. Drying the Beans
If the beans have been processed by the wet method, the pulped and
fermented beans must now be dried to approximately 11 percent moisture to
properly prepare them for storage.
These beans, still encased inside the
parchment envelope (the endocarp), can be sun dried by spreading them on

drying tables or floors, where
they are turned regularly, or they can be
machine dried in large tumblers.
Once dried, these beans, referred to as
'parchment coffee,' are warehoused in sisal or jute bags until they are readied
for export.
5.1.5. Milling the Beans
Before it is exported, parchment coffee is processed in the following manner:
a. Hulling
Machines are used to remove the parchment layer (endocarp) from wet
processed coffee. Hulling dry processed coffee refers to removing the
entire dried husk -- the exocarp, mesocarp & endocarp -- of the dried
cherries.
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b. Polishing
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This is an optional process in which any silver skin that remains on the
beans after hulling is removed in a polishing machine. While polished
beans are considered superior to unpolished ones, in reality there is little
difference between the two.
c. Grading
&
Sorting
Before being exported, the coffee beans will be even more precisely
sorted by size and weight. They will also be closely evaluated for color
flaws or other imperfections.
Typically, the bean size is represented on a scale of 10 to 20. The number
represents the size of a round hole's diameter in terms of 1/64's of an inch. A
number 10 bean would be the approximate size of a hole in a diameter of 10/64
of an inch and a number 15 bean, 15/64 of an inch. Beans are sized by being
passed through a series of different sized screens. They are also sorted
pneumatically by using an air jet to separate heavy from light beans.
Next defective beans are removed. Though this process can be accomplished
by sophisticated machines, in many countries, it is done by hand while the
beans move along an electronic conveyor belt. Beans of unsatisfactory size,
color, or that are otherwise unacceptable, are removed. This might include overfermented beans, those with insect damage or that are unhulled. In many
countries, this process is done both by machine and hand, insuring that only the
finest quality coffee beans are exported
5.1.6. Exporting the Beans
The milled beans, now referred to as 'green coffee,' are ready to be loaded
onto ships for transport to the importing country. Green coffee is shipped in
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either jute or sisal bags which are loaded into shipping containers, or it is bulk
shipped inside plastic-lined containers.
5.1.7. Tasting the Coffee
At every stage of its production, coffee is repeatedly tested for quality and
taste. This process is referred to as 'cupping' and usually takes place in a room
specifically designed to facilitate the process. First, the taster -- usually called
the cupper -- carefully evaluates the beans for their overall visual quality. The
beans are then roasted in a small laboratory roaster, immediately ground and
infused in boiling water, the temperature of which is carefully controlled. The
cupper "noses" the brew to experience its aroma, an integral step in the
evaluation of the coffee's quality. After letting the coffee rest for several
minutes, the cupper "breaks the crust" by pushing aside the grounds at the top
of the cup. Again the coffee is nosed before the tasting begins.
To taste the coffee, the cupper "slurps" a spoonful with a quick inhalation. The
objective is to spray the coffee evenly over the cupper's taste buds, and then
"weigh" it before spitting it out. Samples from a variety of batches and different
beans are tasted daily. Coffees are not only analyzed this way for their inherent
characteristics and flaws, but also for the purpose of blending different beans or
determining the proper roast. An expert cupper can taste hundreds of samples
of coffee a day and still taste the subtle differences between them.
5.1.8. Roasting the Coffee
Roasting transforms green coffee into the aromatic brown beans that we
purchase, either whole or already ground, in our favorite stores. Most roasting
machines maintain a temperature of about 550 degrees Fahrenheit. The beans
are kept moving throughout the entire process to keep them from burning and
when they reach an internal temperature of about 400 degrees, they begin to
turn brown and the caffeol, or oil, locked inside the beans begins to emerge.
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Roasted Arabica Coffee beans

This process, called pyrolysis is at the heart of roasting. It is what produces
the flavor and aroma of the coffee we drink. When the beans are removed from
the roaster, they are immediately cooled either by air or water. Roasting is
generally performed in the importing countries because freshly roasted beans
must reach the consumer as quickly as possible.
5.1.9. Grinding Coffee
The objective of a proper grind is to get the most flavor in a cup of coffee. How
coarse or fine the coffee is ground depends on the method by which the coffee
is to be brewed. Generally, the finer the grind the more quickly the coffee
should be prepared. That is why coffee ground for use in an espresso machine
is much finer than coffee which will be brewed in a drip system.
5.1.10. General:
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The sustained production and processing of high quality coffee is to a very large
extent dependent on efficient and cost effective engineering inputs. Coffee
quality is dependent on production management practices at the farm level
such as fertilization, spraying against infection, tillage practices, and irrigation
and harvesting. The quality is also dependent on processing operations at
factories such as reception, pulping, pre-grading, fermentation, grading,
conditioning, drying, storage and waste management. Transport of cherry and
parchment must also be effected efficiently to ensure a cost effective operation.
Precise milling of coffee also contributes to the final quality and productivity.
5.1.11 Different Processing Methods and Terms Used in the Coffee
Industry:
a) Caf nature dry-processed or sun-dried coffee. This is generally the
Robusta coffee but some Arabicas are also prepared this way.
In this case, the ripe red cherry, once harvested, is spread out in the sun to dry.
The two skins round the bean, the cherry skin and the parchment skin, dry
together, and are removed, once the coffee reaches a moisture content of about
12%, through a single milling or hulling process. The clean coffee (caf
marchand tout venant) is then sorted and graded before export.
b) Washed coffee - which is generally used for the Arabica coffee, consists of
the de-pulping of the coffee immediately after harvest. This is done mainly
using small manual machines, which squeeze the cherries between a disc or
drum, and the coffee bean and its parchment skin come through the process.
The cherry skin is discarded. The parchment, or parchment coffee as it
is then called, needs to be fermented, in order to break down the mucilage
coating round the parchment skin. This takes 12 to 48 hours, depending on
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temperatures and types of coffee. After fermentation, the parchment is then

washed in a channel, and is then spread out in the sun to dry. It may also be
mechanically dried, but a minimum of 72 hours of sun-drying is generally
thought to improve cup quality. The dry parchment coffee is then milled or
hulled, after which it is sorted to remove defective beans and may be graded
for bean size before export. This washing process may be done by hand, using a
hand-pulper, or otherwise a larger central processing facility.
c) Fully-washed coffee -
This uses a slightly larger mechanically powered
pulping machine, which provides for some sorting of the cherry before pulping.
The fermentation and washing process, by virtue of a better scale, can generally
be better monitored to achieve higher qualities. These units may be called
Coffee Washing Station (CWS) a term generally used to denote a larger
factory, with a capacity of 100 tons or more of clean coffee per season.
Central Processing Unit (CPU) a term generally used to describe a smaller
scale Coffee Washing Station, with a capacity which might range from 5 tons to
50 tons of clean coffee per season
Wet-mill the term used in Central America to describe a Coffee Washing
Station. Almost all Central Americas arabica production is processed through
wet-mills.
d) Ecological pulping is a recent development, which has come from Brazil
and Colombia, two of the worlds largest coffee producers. The process is the
same as for fully washed coffee, but the new design of the machinery provides
for the additional of a mechanical removal of the mucilage. The coffee passes
through the pulping unit to remove the outer cherry skin, then instead of
passing to the fermentation and washing processes, instead the parchment
goes directly into the mucilage remover. This mechanically removes the
mucilage in a matter of minutes, and the parchment can be taken out and dried
25
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immediately, without fermentation or washing. The advantages of this type of

machinery are:
-
much reduced water utilization. Reduces water use by 80 to 90%

compared to traditional systems by eliminating the fermentation and
washing processes, it reduces the labour requirement for processing
the fermentation process requires skilled management, since if the coffee

is allowed to ferment for too long, it can over-ferment producing a very
bad cup quality. By eliminating this stage in the process, it reduces the
management requirement of the CWS
the time of processing is reduced. Fermentation can take anything from 8

48 hours, depending on temperatures etc. Again, this simplifies the
management and control of the process
the quality is generally considered to be equally good as the classical

method.
e) Outturn percentages
The profitable operation of any coffee processing facility requires the very
careful monitoring and control of the outturn percentages. This term refers to
the net weight of coffee which remains after one stage in the processing,
expressed as a percentage of the net weight of the coffee before the
processing.
ARABICA Hand-pulped parchment
-
The farmers pass their fresh cherry through hand-pulping machines on

their farms, and then dry the parchment.
26
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-
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From small-holder produced parchment, the normal outturn percentage of

clean coffee is about 70%, because the coffee includes numerous
defective beans which need to be removed when sorting.
ARABICA Centrally processed

- The normal outturn percentage of clean coffee from parchment is 80%, due
to removal of defective beans during processing.
ROBUSTA Dry processed/nature
-
Normally 2.5 kgs of fresh cherry are required to produce 1 kg of dry

cherry outturn percentage 40%
Normally 2kgs of dry cherry are required to produce 1 kg of clean coffee

outturn percentage 50%
The quality of cherry coming from the farmers makes a significant

difference. The outturn percent of clear coffee from dry cherry can be up
to 55%
ROBUSTA Wet-processed/washed
-
Normally 4 kgs of fresh cherry produce 1 kg of parchment coffee

outturn percentage 25%
Normally 1.25kgs of parchment produce 1 kg of clean coffee outturn

percentage 80%
Again, this may be considerable impacted by the quality of the cherry from
the small-holders
A COMPLETE PROCESSING SCHEME FOR MANUFACTURING COFFEE
( FROM PLANTATION TO THE FINISHED COFFEE PACKAGING )
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1.Cherry Accruals 2. Sorting Unripe Area 3. Reception Area 4. Weighing Area.

5. Cherry Hopper / Siphon tank 6. Cherry Feeder 7. Disc Pulper 8. Agaard PreGrader 9. 2 Grid Re-passer pulper 10. Fermentation Tank 11. Recirculation
Sump 12. Colmena Pump 13. Skin Separator Tank 14. Mucilage Remover
15. Soak / Wash Draining Tank 16. Collection point for transfer 17. Pulp House
Drive 18. Pump Drive 19. Weigh Area Roof. 20. Pulp House Roof.
6.0 Project Facilities follows
6.0 PROJECT FACILITIES

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Cell No : +91 98602 40852, 96650 40852, 96650 40852
6.1 REQUIREMENT OF LAND :

Requirements
of land is estimated to be 10,000 sq. meter plot of land.
However, the promoters may acquire higher land keeping in view future
expansion and growth in business. The cost of the leased land will be appx. AED
one million per annum.
6.2 : BUILDING :
shed construction
Chemical Storage
Store House & Ware House
Workshop
Administration building
6.3 PLANT & MACHINERIES :

6.3.1 List of major equipment
Various machineries required for coffee processing

_ Delta Pre-cleaner
29
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_ Green Been Separator
_ Disc Pulper ( For wet process )

_ Dry Stoner
_ Huller
_ Mucilage Remover
_ Polisher
_ Grader
_ Conveyor
_ Gravity Table Separator
_ Hand picking belts
__ Weighing and bagging
__ Central Dust Collection Unit
__ Electrical Switch and Control Panel
6.3.2. Laboratory Equipment
-
Peeler-Polisher-Hand Operated
Peeler-Polisher-Motorised
No. 6 Africa Huller Motor Operated
Africa Huller- Hand Operated
Mini Lab Grader
Sampling Catador
Hand Test Sieves with Rack
Detailed Drawings detailing with the above structures and facilities shall be developed and finalized
at the time of detailed engg. of this project, once the financial approvals are accorded.
30
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Cell No : +91 98602 40852, 96650 40852, 96650 40852
6.3.3 PHOTOS OF SOME IMPORTANT EQUIPMENT:
POLISHER
DE-STONER
PULVERISER
31
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COLOR SORTING MACHINE
VIBRO - CLEANER
32
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Cell No : +91 98602 40852, 96650 40852, 96650 40852
33
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Cell No : +91 98602 40852, 96650 40852, 96650 40852
34
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Cell No : +91 98602 40852, 96650 40852, 96650 40852
GRINDING & PACKAGING MACHINE
35
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Cell No : +91 98602 40852, 96650 40852, 96650 40852
DRY PROCESSING PLANT
A TYPICAL PACKED COFFEE POWDER IN A POUCH

36
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Cell No : +91 98602 40852, 96650 40852, 96650 40852
6.3.4 POLLUTION CONTROL MEASURES :

The plant is expected to generate coffee dust during the process. Therefore, a
Dust Collection System shall be provided as part of the pollution control
measure and the sust so collected shall be recycled back to the process at the
appropriate stage. Dust content in the work zone shall be limited to 5 mg/N cu
m over.
The system will be designed in such a way that no solid waste will be
discharged outside the system, the solid waste that is the dust generated in the
system will be recycled back to the system itself.
. Cost Summaryfollows
37
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7.0 COST SUMMARY & OPERATING EXPENSES

7.1 CAPITAL EXPENDITURE ( Figs in AED ) :
7.1.1 LAND & BUILDING

- LAND: Land is proposed to be taken on lease rental. The expected rental is
Dhm one million per year. Therefore, this expenses shall be the part of
operating expenses and working capital, rather than fixed capital.
- BUILDING: building requirement is estimated as follows:
*
Administration Building
- 3000 sq. feet
Laboratory area
- 1000 sq. feet
Chemical Storage
- 1500 sq feet
Store House and Ware House
Workshop
Shed Construction for Plant & Machinery
3000 sq feet
1000 sq feet
5000 sq feet
Total Built up requirement - 14500 sq feet

2,900,000 AED
7.1.2 PLANT & MACHINERIES : ( Breakup to be revalidated )
S.No
1
2
3
4
5
6
7
8
9
Items
Coffee Pre-Cleaner
Green Been Separator
Dry Stoner
Huller
Mucilage Remover
Polisher
Grader
Conveyer System
Gravity Table
Broad Specs
Cost in Dhm
Separator
38
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Cell No : +91 98602 40852, 96650 40852, 96650 40852
10
11
Hand picking belts

Weighing and
12
packaging
Central Dust
13
Collection Unit
Electrical Switch and
Control Panel
Fire Fighting Facilities
TOTAL P & M
14
1000,000
Note :
Specifications & Break up for individual equipment to be worked out at
the time of preparing detailed engg and tendering documents after the
financial approval of the projects.
-
Peeler-Polisher-Motorised
No. 6 Africa Huller Motor Operated
Africa Huller- Hand Operated
Mini Lab Grader
Sampling Catador
Hand Test Sieves with Rack

------------------------------------------------Cost of Lab equipment
AED 100,000
TOTAL FIXED CAPITAL (BUILDING + P & M + Lab facilities ) = ..(A)

2,900,000 + 1000,000 + 100,000
7.2
= 4,000,000
YEARLY OPERTING EXPENSES:

39
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Cell No : +91 98602 40852, 96650 40852, 96650 40852
7.2.1
Lease Rental for Land:
AED
1000,000
7.2.2
Transportation of raw materials: AED 1000,000
7.2.3
Power & Utilities:
120 HP
( includes admin bldg..) 80 % of connected load

= AED 150,000
7.2.4
Manpower requirement:
All figs in AED
S.No Manpower position
No
1
2
3
4
5
6
7
8
9
10
1
1
1
4
4
3
2
2
5
10
32
Factory Manager
Maintenance Supervisor
Accounts Officer
Plant Operators
Plant Technicians
Accounts Clerk
Store House Supervisor
Dispatch Supervisor
Security personnel
Casual Laborers
TOTAL MANPOWER
Add Perks @ 20 % of salaries
Yearly
Package
160,000
140,000
120,000
40,000
35,000
35,000
40,000
30,000
20,000
15,000
243,000
Therefore yearly manpower expenses
7.2.5 : Packaging and Administrative Expenses

Total Operating Cost per Year
1458,000
LS :
200,000
AED 3,808,000 / annum
Cost of Raw Materials = 10,000 T x AED 3000 / T =

( 25% processing wastage and discards)
Total Cost of Production per year
Total yearly
expenses
160,000
140,000
120,000
160,000
140,000
105,000
80,000
60,000
100,000
150,000
1,215,000
30,000,000
33,808,000
40
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Cell No : +91 98602 40852, 96650 40852, 96650 40852
Working Capital for 3 months
8452,000 say 8,500,000
TOTLA CAPITAL EXPENDITURE =

= FIXED CAPITAL + WORKING CAPITAL
=
4,000,000
+ 8,500,000
=
12,500,000 AED
Note :
The cost of project is appx. Equivalent to : 2,687,500 Euro ( 1 AEd =
0.215 Euro, Or say appx. 2.7 million Euro.
7.3
FINANCING OF THE PROJECT:

As per promoters plan, the total project shall be financed by deploying
25% of the capital cost from its internal resources and balance 75 %
shall be borrowed from the financial institutions @ 5.5 % yearly
interest. The first year will be a moratorium year.
Therefore, promoters share @ 25%
= AED 3,125,500
& balance 75% through the mid term loan
= AED 9,375,000
Cash Flow & Financial Analysis follows.
8.0 CASH FLOW & FINANCIAL ANALYSIS

41
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Cell No : +91 98602 40852, 96650 40852, 96650 40852
8.1
ASSUMPTIONS :
1. 100% capacity utilization @ 25 TPD or 7500 Tonnes per
year.
2. Present selling price of coffee powder / beans: AED
10,700 per Tonnes.
3. Increase in revenues @ 5% per year due to rise in prices.
4. Increase in cost of production ( including raw materials @
5% p.a.
5. Depreciation of Building @ 10% on straight line basis
6. Depreciation of Plant & machine @ 16.66% on straight
line basis
7. Interest cost @ 5.5% on the depleting balance of total
outstanding after loan repayments.
8.2 CASH FLOW TABLE

Figs. In million AED
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S.No/ Item
Year
1
Yearly
80.25 84.26
88.48
92.90
97.40
Revenues
Cost of
33.81 35.50
37.28
39.14
41.09
production
Dep of
0.29
0.29
0.29
0.29
0.29
bldg..@10%
Dep of P &
0.18
0.18
0.18
0.18
0.18
M @ 16.66
Gr Proft b4
45.97 48.29
50.90
53.29
55.84
interest
Loan
5.00
5.16
Nil
Nil
Nil
Installment
Interest on
0.52
0.27
Nil
Nil
nil
45.45 48.02
50.90
53.29
55.84
interest
Profit /
3.63
3.84
4.07
4.26
4.47
10
invest ratio
Profit as %
56.6
56.99
57.52
57.92
57.33
Total
depleting
O/s
Net profit
after
of sales
Notes :
1. Any Excize, sales tax and any other business taxes are not taken
into a/c. If any, the same shall be built into selling price and
recovered from the customers.
43
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Cell No : +91 98602 40852, 96650 40852, 96650 40852
2. No Corporate Income Tax is taken into a/c while calculating the

net profit. If any, the net profit and the cash flow will have to
reassessed based on actual incidence of the corporate income tax.
8.2
FINANCIAL ANALYSIS & CONCLUSIONS :

1. The project is eceonomically highly attractive, as it is
generating profits fright from the first year itself.
2. The project will be able to repay the laons in 2 years time.
3. The project will contribute significantly to the corporate
cash flow and will generate enough surplus to take care of
not only the routine maintenance of the plant, but also for
expansion and diversification in the near future.
. Contd 9.0 Plant & Machineries Suppliers
1. PLANT & MACHINERIES SUPPLIERS

1. Cimberia Heid, GmbH
Heid Werkstrasse 4
A 2000 Stockerau, Austria
Phone: (+43) 2266 699
Email: heid@cimbria.at Website :www.heid.cimbria.com
44
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Cell No : +91 98602 40852, 96650 40852, 96650 40852
2. Spectrum Industries,
Email: www.spectrumindustries.org
Mobile: +(91)-9844043990
3. Thermal Engg Corporation,
E- 168, Kavinagar Industrial Area,
Ghaziabad, U.P ( India) 201 002
Phone: +91 120 2700429,
Email: thermaengggzb@yahoo.co.in
Website : www.thermalengg.com
4. Heifie Angelon Electronics Co Ltd.,
Tel: 86 551 584 7811
Email: sales@angelon.com
Website : http://www.ajlong.cn/en/default.asp
5. Jinan Double Win Agile Manufacturing Technology Co., Ltd

Website : sjminjie.en.alibaba.com
6.
Anhui Hongshi Optoelectronic High-Tech Co., Ltd.

Website : http://ahhongshi.en.alibaba.com/aboutus.html
______________________ Project Report Ends
_____________________
45
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