Increasing Demand and Supply of Papad

Topics: Capacity utilization, Variable cost, Raw material Pages: 8 (1842 words) Published: May 17, 2013
Papad is a popular and tasty food item in the Indian diet since many centuries. It is essentially a wafer-like product, round in shape and made from dough of powdered pulses, spices, powdered chilly and salt. Variety of pulses and proportion of pulses and spices varies from region to region depending upon preferences of local people whereas certain varieties are popular on a larger scale. Traditionally this activity was confined to household papad making but in view of increasing demand and availability of machinery (mechanisation) it has now been developed in cottage and small scale sector.

Papad is a favourite item with Indians and is used as taste enricher with the main course and as a snack item. Since it is made from pulses, it is easy to digest and nutritious as well. It is very easy to make instant food item and is either fried in edible oil or simply roasted before serving. Its shelf life is 2½ to 3 months. This product can be made anywhere in the country. The note envisages location at an appropriate place in Assam. MARKET POTENTIAL

Market for papad is steadily growing across the country. There are not much seasonal fluctuations but demand generally goes up by 10% to 15% during winter season. There are a couple of national brands but the market is predominantly controlled by the local brands. This activity is yet to pick up in Assam and thus prospects for a new entrant are bright, provided quality is good and prices are competitive. It can be sold through many outlets of provision and departmental stores. Before launching the product, a quick assessment of consumer preferences is advisable.

Demand and Supply
Papad manufacturing is primarily confined to the unorganised sector. There are some national brands like Lijjat, Leher, Haldiram etc. but their products are costly and thus have limited market share. Bulk of the market is controlled by the local brands. Market for these products is growing steadily and there are not much seasonal fluctuations. Marketing Strategy

Pricing is a critical aspect to compete with established brands and the product has to be pushed through with the help of retailers. A small delivery van is necessary. Requisite changes in the ingredients have to be made in line with regional likings. Farsan items can be sold in bulk packing of 2, 5 and 10 kgs. to the retailers who, in turn, would repack them in suitable quantity and sell. This is a standard practice in this industry as retailers from nearby centres prefer to buy them in bulk for selling in local market. MANUFACTURING PROCESS

Papad can be manufactured from different varieties of pulses or there could be a combination of pulses as well. Adequate quantity of water is added in flour of pulses, common salt, spices and sodium bicarbonate and homogenous mixing is done to obtain dough. After about 30 minutes, small balls weighing around 7-8 grams of dough are made. These balls are then placed in papad making machine or papad press wherein these balls are pressed and circular papads are made as per the size of mould. These papads are then sun-dried but in this note drier with trolley is recommended as sun-drying may not be always feasible in Assam. Lot of 25 or 50 papads is then packed in polythene bags.

1. Land and Building
A plot of land of about 150 sq.mtrs. with built-up area of approximately 80 sq.mtrs. shall be adequate to house all the equipments leaving sufficient space for storage and packing. The location need not be at a prominent place as counter sales is not envisaged. The total cost of land is taken at Rs. 50,000 whereas the construction cost is assumed to be Rs.2.00 lacs. 2 .Plant and Machinery

It is suggested to have annual rated production capacity with 300 working days and 2 shift working of 60 tonnes. To install this capacity, following machinery shall be needed: Item| Qty.| Price (Rs.)|

Grinder with electric motor having 30-35...
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