BEER FACTORY PROJECT

Prepared By

RVG International

Pvt. Ltd.

Strategic & Project Management Services

Mobile No. 9869621072/9869273067

Email Id rvginternational@yahoo.in

Websitewww.rvginternational.com

Shri.Vinayak S. GaonkarDirectorRegd. Office

A-404, Om Sai Ashirwad Chs. Ltd.Old Mumbai Pune Road, Thane : 400 605

Corporate Office B-5, Dev Prayag Commercial Complex, Hari Niwas Circle, Thane (W) : 400603

Agryguru

INTRODUCTION

RVG International was established on 11th November,2010 (previously whole activity run on the name of M/s.Vinayak S. Gaonkar & Co., since 2001) with a view to cater to the strategic and entrepreneurial consulting requirements of various Indian and foreign businesses. Initial focus was on mid-size family managed businesses in India as these were considered to be outside the target market of high end consulting firms; later the company naturally climbed to meet the needs of overseas businesses seeking assistance in entering the Indian Market and in establishing and managing businesses in India.

Today RVGI has list of satisfied clients ranging in annual sales from Rs 3 crores (US $0.54 million) to Rs.700 crores (US $.1.27 million) and spanning diverse range of businesses including advertising, construction, infrastructure, metal, plastics, polyester fiber, real estate development, seed, steel, sugar, Hotels and Beverages. The client list is equally diverse in the range of ownership from private family owned Indian companies to stock exchange listed and government owned companies, both Indian and foreign.

RVG International Provides total services under single source. RVGI group company develops innovative solutions that are specifically tailored to the economic and ecological requirements of its customers. Be it the upgrade of an existing brew house, innovative solutions in the cold process area, expansion projects, heat recovery concept, process components or complete brewery plants, which meets the requirement of the modern brewing industries.

Brewing: How Beer is Made

Brewing is the production of alcoholic beverages and alcohol fuel through fermentation. This is the method used in beer production. Brewing is fundamentally a natural process. The art and science of brewing lies in converting natural food materials into a pure, pleasing beverage. Although great strides have been made with the techniques for achieving high-quality production, beer today is still a beverage brewed from natural products in a traditional way. Although the main ingredients of beer have remained constant (water, yeast, malt and hops), it is the precise recipe and timing of the brew that gives one a different taste from another. The production of beer is one of the most closely supervised and controlled manufacturing processes in our society. Apart from brewing company expenditures on research and quality control designed to achieve the highest standards of uniformity and purity in the product, the production of beer is also subject to regular inspection and review by federal and provincial Health Departments. Substances used in the brewing process are approved by Health Ministry of India. On average, a batch of beer will take about 30 days to produce. To be more specific, brewing takes nine and a half hours, while fermentation and aging combined take between 21 and 35 days for ales and lagers respectively.

Brewing: Process Overview

The grain used as the raw material is usually barley, but rye, maize, rice and oatmeal are also employed. In the first stage the grain is malted, either by causing it to germinate or by artificial means. This converts the carbohydrates to dextrin and maltose, and these sugars are then extracted from the grain by soaking in a mash tun (vat or cask) and then agitating in a lauter tun. The resulting liquor, known as sweet wort, is then boiled in a copper vessel with hops, which give a bitter flavor and helps to preserve the beer. The hops are then separated from the wort and it is passed through chillers into fermenting vessels where the yeast is added-a process known as pitching-and the main process of converting sugar into alcohol is carried out. The beer is then chilled to , centrifuged and filtered to clarify it; it is then ready for dispatch by keg, bottle, aluminum can or bulk transport.

Beer Production: Ingredients

The water must be pure, with no trace of bacteria. This is vital, because it allows the other ingredients to release all their flavor. 95% of breweries have their own spring or natural well.

Barley is a cereal that offers a key advantage: it can be preserved for a long time after harvesting. In order for barley to be used in the making of beer, it must first be malted. It is malted barley that gives beer its characteristic color and taste.

Hops or “green gold” come from a climbing plant with male and female flowers; only the female flowers are used. There are various varieties, ranging from very bitter to aromatic. Hops grew naturally in foreign countries in ancient times, and this plant has been used by brewers since time immemorial. In antiquity, it could be replaced by mixtures of aromatic herbs, in particular rosemary and thyme, which had the same preserving effect as hops but of course gave the resulting beverage a quite different flavors. Yes, it is hops that give beer its characteristic bitterness, and this plant became so successful that in the 18th century all varieties of beer contained hops.

Yeasts transform the sugars in the must into alcohol and carbon dioxide. The type of yeast used varies according to the type of beer. There was a time when man had no control over yeasts in beer. Nowadays there are two main varieties of yeasts that are used in brewing: saccharomyces cerevisiae and saccharomyces carlsbergensis (bottom fermenting). Certain other products are used in the making of beer, in particular spices: coriander, ginger, cloves, sage, fennel, mustard seeds, aniseed, cinnamon, etc.

Beer Production Process

MashingMalt is added to heated, purified water and, through a carefully controlled time and temperature process, the malt enzymes break down the starch to sugar and the complex proteins of the malt to simpler nitrogen compounds. Mashing takes place in a large, round tank called a "mash mixer" or "mash tun" and requires careful temperature control. At this point, depending on the type of beer desired, the malt is supplemented by starch from other cereals such as corn, wheat or rice.

LauteringThe mash is transferred to a straining (or lautering) vessel which is usually cylindrical with a slotted false bottom two to five centimeters above the true bottom. The liquid extract drains through the false bottom and is run off to the brew kettle. This extract, a sugar solution, is called "wort" but it is not yet beer. Water is "spurge" (or sprayed) though the grains to wash out as much of the extract as possible. The "spent grains" are removed and sold as cattle feed.

Boiling and HoppingThe brew kettle, a huge cauldron holding from 70 to 1,000 hectoliters and made of shiny copper or stainless steel, is probably the most striking sight in a brewery. It is fitted with coils or a jacketed bottom for steam heating and is designed to boil the wort under carefully-controlled conditions. Boiling, which usually lasts about two hours, serves to concentrate the wort to a desired specific gravity, to sterilize it and to obtain the desired extract from the hops. The hop resins contribute flavor, aroma and bitterness to the brew. Once the hops have flavored the brew, they are removed. When applicable, highly-fermentable syrup may be added to the kettle. Undesirable protein substances that have survived the journey from the mash mixer are coagulated, leaving the wort clear.

Hop Separation and CoolingAfter the beer has taken on the flavors of the hops, the wort then proceeds to the "hot wort tank". It is then cooled, usually in a simple-looking apparatus called a "plate cooler". As the wort and a coolant flow past each other on opposite sides of stainless steel plates, the temperature of the wort drops from boiling to about 10 to 15.5 °C, a drop of more than 65.6 °C, in a few seconds.

FermentationThe wort is then moved to the fermenting vessels and yeast, the guarded central mystery of ancient brewer's art, is added. It is the yeast, which is a living, single-cell fungi, that breaks down the sugar in the wort to carbon dioxide and alcohol. It also adds many beer-flavouring components. There are many kinds of yeasts, but those used in making beer belong to the genus saccharomyces. The brewer uses two species of this genus. One yeast type, which rises to the top of the liquid at the completion of the fermentation process, is used in brewing ale and stout. The other, which drops to the bottom of the brewing vessel, is used in brewing lager. During fermentation, which lasts about seven to 10 days, the yeast may multiply six-fold and in the open-tank fermenters used forbrewing ale, a creamy, frothy head may be seen on top of the brew.

FiltrationFiltering the beer stabilizes the flavor, and gives beer its polished shine and brilliance. Not all beer is filtered. When tax determination is required by local laws, it is typically done at this stage in a calibrated tank. Filters come in many types. Many use pre-made filtration media such as sheets or candles, while others use a fine powder made of, for example, diatomaceous earth, also called kieselguhr, which is introduced into the beer and recirculated past screens to form a filtration bed. Filters range from rough filters that remove much of the yeast and any solids (e.g. hops, grain particles) left in the beer, to filters tight enough to strain color and body from the beer. Normally used filtration ratings are divided into rough, fine and sterile. Rough filtration leaves some cloudiness in the beer, but it is noticeably clearer than unfiltered beer. Fine filtration gives a glass of beer that you could read a newspaper through, with no noticeable cloudiness. Finally, as its name implies, sterile filtration is fine enough that almost all microorganisms in the beer are removed during the filtration process.

PackagingIn the bottle shop of a brewery, returned empty bottles go through washers in which they receive a thorough cleaning. After washing, the bottles are inspected electronically and visually and pass on to the rotary filler. Some of these machines can fill up to 1,200 bottles per minute. A "crowning" machine, integrated with the filler, places caps on the bottles. The filled bottles may then pass through a "tunnel pasteurizer" (often 23 meters from end to end and able to hold 15,000 bottles) where the temperature of the beer is raised about 60 °C. for a sufficient length of time to provide biological stability, then cooled to room temperature. Emerging from the pasteurizer, the bottles are inspected, labeled, placed in boxes, stacked on pallets and carried by lift truck to the warehousing areas to await shipment. Also in the bottle shop may be the canning lines, where beer is packaged in cans for shipment. Packaged beer may be heat-pasteurized or micro-filtered, providing a shelf-life of up to six months when properly stored. Draught beer, since it is normally sold and consumed within a few weeks, may not go through this process. The draught beer is placed in sterilized kegs ready for shipment.

TOTAL PROJECT COST & SOURCES OF FINANCE(Rs. in Lakhs)

Original Cost of Project        

Borrowings from Financial Institutions       2620.00

Promoters contribution       1123.00

Unsecured Loans       0.00

    TOTAL   3743.00

PARTICULARS %

Borrowing from Bank       70.00

Own contribution + Quasi funds       30.00

    TOTAL   100.00

Cost of ProjectRs.in Lacs

Particulars Unit/ Area Rate Rs.in Lacs Total

LAND AND BUILDING        

Workshop Building 165440 sq.feet        

a. Total cost of construction @ Rs.1300/ sq.feet 84080 850 715 

(16 meter Height Factory Building)       

b. Built Up cemented Area 7000 cbm       

@ Rs.7000/cbm 2800 7000 196 

c. Office 20000 sq.feet @ Rs.950/ sq.feet 10000 950 95 

d.Two Godowns & Pumping station 40000 sq,feet 40000 850 340 

e. Pumping & Generator Room 4000 sq.feet @ Rs.650/ sq.feet 4000 650 26

 

f. Water Reservoir-Lagoon 200 lac lit @ 15000/lit 200 15000 30 

g.Pipeline from Water source @ 9.5 Lacs/Km 10 950000 95 

h.Parking Shed 200 meter @ Rs.2000/ meter 200 2000 4 

        1,501.00

d. Land (Already Purchased)     0 

e. Land Devlopment, Fencing, Roads, Drainage 5 500000 25 

Levelling etc. Acres     

        25.00

PLANT AND MACHINERY       

a. 10000ltr to 25000ltr per day capacity (Exteded Cap)       

Ex.work price of Machinery and equipments 1 93700000 937 

b. Bottale Washing, Filling & Packaging Machine 1 3300000 33 

c. Can or Tin Filling Machines 1 2400000 24 

d. Excise/Customs Duty 1 25800000 258 

e. Packaging forwarding and Frieght 1 9400000 94 

f. Erection and commisioning 1 1000000 10 

New Mt Bottales & Cans 1000000 12 120 

Trucks & Trailor 4 2500000 100 

Forck lift /Trolleys/ Tractors 100 no. @ Rs 0.50 lacs 100 50000 50 

        1,626.00

Other Fixed Assets:       

Software packages and ERP and Survlilience System 1 500000 5 

Electrifications 1 2500000 25 

Laboratory equipments 2 250000 5 

Furniture and Fixtures 1 5000000 50 85.00

Preliminary Expenses       

Advertisement & Product Launching cost 1 10000000 100 

Interest During Construction Period 1 28100000 281 

Margin for Bank gurantee Gov.of India of 100 lacs 1 2500000 25 

Pre-operative Expenses        

Technical & Professional Consultancy 1 10000000 100 506.00

FINAL COST OF PROJECT 3,743.00

Working Capital Requirement (For 6 Month for 10000ltr.)Rs.in Lacs

Particulars Unit/ Area Rate Rs.in Lacs Total

Salary & Wages        

Production Manager & Engg. 3 300000 9  

Superwiser & Technicians 5 150000 8 

Workers 15 60000 9 

Marketing Executive 12 90000 11 

Accounts Manger 1 150000 2 

Accounts & Office Staff 5 72000 4 

        43

Malt & Raw Material 2,500 4500 113 

Yeast, Sugar, Hops & Other Ingredients 1,600 5400 86 

Electricity Cunsumption 4.6k.w per day 4.6 5796000 267 

Packaging & Printing Material 360000 12 43 

Transportation & Other Material Cost 180 12000 22 

Other Administrative Expences 180 5000 9 

        539

Total Working Capital Requirement 583

         

SOURCES OF FINANCE(Rs. in Lakhs)

Working Capital Assessement        

Borrowings from Financial Institutions       380

Pramoters contribution       203

Unsecured Loans       0.0

    TOTAL   583

PARTICULARS %

Borrowing from Bank       65

Own contribution + Quasi funds       35

    TOTAL   100.00