Profile No.

: 46 NIC Code: 21009

BLEACHED AND DEHYDRATED GINGER

1. INTRODUCTION

Ginger (Zingiber officinale Rosc.) is an important commercial crop grown for its aromatic
rhizomes which is used both as a spice and a medicine. Ginger of commerce is the dried
rhizome. It is marketed in different forms such as raw ginger, dry ginger, bleached dry
ginger, ginger powder, ginger oil, ginger oleoresin, ginger ale, ginger candy, ginger
beer, brined ginger, ginger wine, ginger squash, ginger flakes etc. Ginger is the rhizome
of Zingiber officinale Rosc. a herbaceous perennial belonging to Zingiberaceae, and is
believed to be native of south-eastern Asia. It is propagated through rhizomes. The
rhizomes put forth erect, leafy stems, 30-90 cm in height. The base of the leaves
sheathe the stem. The leaves are dark green, 15-20 cm long, narrow, lanceolate and
with a prominent midrib. The flowers are small, yellowish, speckled, each with a purple
speckled lip and borne on a spike. When the plants are about 9 months old, the green
leaves turn yellow.

Ginger was one of the first of the oriental species to be introduced into Europe and later
to the Americas. The first year crop is one of the best quality. Regrowth of inferior and
is known as rhatoon ginger. There are several forms of ginger. Dried ginger is prepared
by drying the peeled roots in the sun. Black ginger is made by boiling the roots in line
water prior to peeling white ginger is made by bleaching the roots. It is a widely grown
crop of our country. A genus of hizomatous herbs distributed in the tropics of the old
world, chiefly in India, East Asia and Malaysia. Fourteen, species are reported to occur in
India Z-officinale, which is the main source of ginger, is cultivated on a large scale in
India. The ginger of commerce is prepared from the underground stem or rhizome of
Zingiber officinale Rescue. It is also used for medicinal purposes. Major ginger-producing
areas of the world are India, Malaya, China, West Africa, and the West Indies. Two
types of edible gingers are grown, the large type known locally as Chinese ginger and
the small type known as Japanese Ginger. Only the former type is grown to any great
extent. Most of the planting areas are in small areas. There are two types of Indian
ginger cochin ginger, and Calicut ginger, which comes from Kerala, is the peeled type,
light brown to yellowish gray externally and other Calicut ginger, frozen Malabar is
orange or reddish. Indian ginger is more starchy and is almost as pungent on Jamaican
ginger but is less agreeable in odour. Indian ginger has a faint lemon like odour due to
the presence of a small quality of citral. Indian species logo and Brand promotion
market invention and special subsides are expected to boost-ginger production. Hence
ginger cultivation yields good result for new investor and finds the trade is lucrative. The
export market is also quote favourable for all these products.

Ginger is the underground stem (rhizome) of a perennial herb, which is used as a spice
and as a preserve. The knobby rhizome is dug up when the 1 meter tall leaves and
stems of the plant wither, which occurs between 6 and 12 months after planting. It is
then prepared for market by either scalding, to produce black ginger, or by scraping and
washing to produce white ginger. It is sold in the fresh condition or, more frequently, in
a peeled and split dried form. Ginger is utilized widely as a spice, for pickles, candies
and as a medicinal herb. It can be produced in many countries but it does best in moist,
tropical conditions.

Ginger is a commonly grown culinary item in Uganda. The envisaged project is to set up
plant to plant to preserve ginger by bleach-drying it.
The ginger is bleached, left to dry and dehydrated for preservation. Preserved ginger
has a big market over an extended period.
Used in instant masalas, dried ginger is as a sort of a ready mix for all food
preparations.

In the pharmaceutical industry, ginger is used for extracting oleoresins.

Ginger is widely grown in Uganda and thus this project need not be put in the urban
areasalone.
 The project can be put up in the rural areas where most of the ginger is grown.

The state of Meghalaya produces substantial quantity of ginger with East-Khasi Hill
district producing about 5000 tons annually whereas Jaintia Hills district around 2000
tons. Bulk of ginger is marketed in raw form or dried form and a small quantity is used
for making oil. Dry ginger is prepared from the underground shoots or rhizomes of
zingber officinal plant. It is usually prepared by peeling of the outer skin and drying
them in sun for about a week. It is also known as unbleached ginger. This is the
common practice. But mechanical dehydration increases the production; quality is
superior and more hygienic. This is a versatile product and can be produced in many
parts of the country but this note considers Meghalaya as the preferred location

2. PRODUCTS AND ITS APPLICATION

Dried ginger has a market as a culinary item in almost all over the world. The market for
instant masalas has been growing for some time and supply to restaurants, supermarket
chains, etc. Aggressive advertising is needed though all the competition comes from
imported products.

3. DESIRED QUALIFICATION FOR PROMOTER

An educational background in science with Botany as main subject would be better.

Further specialization in medicinal plants would help.
4. INDUSTRY OUTLOOK/TREND

Fresh and dried ginger, ginger oil and ginger powder are used in large quantities in
many vegetarian and non-vegetarian food preparations in Indian, Continental and
Chinese cuisine. Ginger also has medicinal attributes and is used in many households as
well as by pharmaceutical companies. Bit fresh ginger is available only for about 5-6
months and hence the demand for bleached and dehydrated ginger is increasing.
The Indian herbal medicines market includes OTC, ethical and classical formulations and
home remedies of Ayurveda, unani, homeopathy and siddha systems of medicines _
Over the period of 2008 and 2013, the herbal medicine market in the country grew at a
CAGR of 26.7%1. The growth of herbal medicines reflects the shifting trend of
consumers from allopathic to herbal medicines

5. MARKET POTENTIAL AND MARKETING ISSUES, IF ANY

The major ginger producing countries are India, China, Nigeria, Indonesia, Bangladesh,
Thailand, Philippines, Jamaica etc. It is also grown in Australia, Fiji, Brazil, Sierra Leone and
Japan. United Kingdom, United States, Japan and Saudi Arabia import large quantities of
ginger. Nigeria ranks first with respect to area under ginger covering about 56.23 % of the
total global area followed by India (23.6%), China (4.47%), Indonesia (3.37%) and
Bangladesh (2.32%). India ranks first with respect to ginger production contributing about
32.75% of the world’s production followed by China (21.41%), Nigeria (12.54%) and
Bangladesh (10.80%). Asian countries lead in the supply of ginger in the world market.
Japan and USA are the major importers. China has the major export share. India exports
mainly in the form of whole and dry ginger. Indian dry ginger is known in the global market
as ‘Cochin Ginger and ‘Calicut Ginger’. Cochin Ginger is considered as one of the best in the
world. China, Nigeria and Thailand are competing with India in the recent past in the world
market. Australia is the world leader in value added products. India has 50% share in oil
and oleoresin trade.

Fresh and dried ginger, ginger oil and ginger powder are used in large quantities in many
vegetarian and non-vegetarian food preparations in Indian, Continental and Chinese
 cuisine. Ginger also has medicinal attributes and is used in many households as well as by
pharmaceutical companies. Bit fresh ginger is available only for about 5-6 months and
hence the demand for bleached and dehydrated ginger is increasing.

Marketing Strategy

Manual and sun-drying method is in vogue for dehydration since long, but production is not
only limited but quality is also not up to the mark. Hence, mechanically bleached and
dehydrated ginger has become very popular. Restaurants, eateries and dhabas, clubs,
caterers, food processing industry and pharmaceutical companies are the main consumers.
There are very good export markets as well but the contemplated capacity of the project
does not warrant this aspect.

6. RAW MATERIAL REQUIREMENTS

The all-important raw material is fresh ginger. Requirement during the season even at 100
% will be 30 tons and procurement should not be a problem at all. Bags made from food
grade plastic shall be required for inner packing and large size bags for outer packing.
*Fresh ginger
*Lime
* Polythene
Ginger to be of fresh and good quality

7. MANUFACTURING PROCESS

Fresh ginger is cleaned thoroughly to remove soil and dirt.

The outer skin is peeled with the help of a stainless steel knife.
The ginger is then washed and soaked in limewater for 12 hours after which it is dried.
This process is repeated two or three times to get dried moisture level of 10-12 per cent.
The product is then packed in polythene lined gunny bags.

Ginger is washed and cleaned in water and then skin of ginger is peeled partially with the
help of peeling machine. It is then dried in electrically operated tray drier at a temperature
 of about 60oC. Even if ginger is to be used for extraction purposes, this temperature is
advisable as oil contents in ginger are not affected till 800C. Drying time is 24 hours in
cross-flow type drier and 14 hours in through-flow drier. Dried ginger slices are packed in
polythene bags and sealed. Average yield after drying is around 25%.

CFTRI, Mysore, has developed the technical know-how successfully. The process flow
chart is as under:

Washing, cleaning and partial

peeling

Drying

Packing

8. MANPOWER REQUIREMENT

Sr. No Particulars Nos Monthly Total Monthly

Salary (Rs.) Salary (Rs.)
1 Skilled Workers 1 4000 4000
2 Semi-skilled Worker 1 2000 2000
3 Helpers 2 1500 3000
4 Salesman 1 3000 3000
Total 12,000
 9. IMPLEMENTATION SCHEDULE

Sr. No Activity Time

1 Preparation of Project profile
2 E M Registration & approval from Director of Ayurveda One month
3 Financial/Loan from Banker or Financial Institutions Two months
4 Power connection/Building construction Six months One month
5 Machinery procurement & Trial run. Two months
6 Recruitment of Staff & Labour One month
7 Actual commercial production One month

10. COST OF THE PROJECT AND

Sr. No Particulars Amount

(Rs.in Lacs)
1 Building 2.00
2 Machinery 1.90
3 Miscellaneous Assets 0.40
4 P&P Expenses 0.60
5 Contingencies @ 10% on Land and Building and Plant & Machinery 0.40
6 Working Capital Margin 1.00
Total 6.30

11. MEANS OF FINANCING

Sr. No. Means of Finance Rs. In Lakhs

1 Promoters' Contribution 1.60
2 Term Loan from Bank/FI 4.70
Total 6.30

12. WORKING CAPITAL CALCULATION

The proposed project will have working capital requirement of Rs.3.00 lacs and based on
current funding norms of schedule banks considering 30% margin of the promoters, the
proposed project will have working capital margin of Rs.1.00 lac and borrowing of Rs. 2.00
lacs. This requirement is indicative and may change as per funding norms of funding
banks/agencies.
13. LIST OF MACHINERY REQUIRED& SOURCES

Rated processing capacity of 20 tons per month is suggested considering 1 shift working
and production for only 6 months during the year. This would require following set of
equipments:

Sr. No Item Qty. Price (Rs.)

1 Ginger Peeling Machine 1 50000
2 Electrically-operated Tray Drier-48 trays 1 90000
3 Weighing-scales, sealing machine, etc. -- 30000
4 Washing Tank 1 20000
Total 1,90,000

Indicative Sources:
 Pharmatech Enginers,
Indore
Madhya Pradesh

 Ambica Machineries,
Vatva, Ahmedabad
Gujarat

 ARV Engineering,
Thane,
Maharashtra
 14. PROFITABILITY CALCULATIONS

8.1 Production Capacity & Build-up

The rated capacity is 20 tonnes per month and the plant would be operated for 6 months. The
promoters may use it for some other fruits or vegetables but this note does not account for any
such activity. Capacity Utilisation in the first year is taken as 60% and thereafter it is limited to
75%.

8.2 Sales Revenue at 100%

Assuming selling price Rs. 1, 00,000/- per ton, sales revenue at 100% for six months will be Rs.
120.00 lacs.

Profitability projections (Rs. Lacs)

Sr. No Particular YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

1 Capacity utilisation (%) 60 70 75 75 75
2 Sales 72.00 84.00 90.00 90.00 90.00
3 Expenses 57.60 67.20 72.00 72.00 72.00
4 Gross profit 14.40 16.80 18.00 18.00 18.00
5 Profit to Sales (%) 18.00 20.00 21.00 21.00 21.00

Note: The profitability basis and projections are indicative and on approximate basis only.

15. BREAKEVEN ANALYSIS

FC X 100: 11.00 X 100 = 1100

FC + Profit : 12.00 +9.00=
BEP = 52.00 %
 16. STATUTORY/ GOVERNMENT APPROVALS

Generally quality of Ayurvedic products is fully dependent on the quality of raw materials and
process of manufacture. The quality control process of some Ayurvedic formulations can be
contained from 'Pharmacopica Laboratory of India Medicine, near ALTC, Ghaziabad (U.P)'. The
products are to be manufactured as per Indian system of medicines of Ministry of Health.
Schedule “T” is to be followed as per Food & Drugs Administration norms.MSME & GST
registration, IEC Code for Export of end products and local authority clearance may be required for
Shops and Establishment, for Fire and Safety requirement and registration for ESI, PF and Labour
laws may be required if applicable and also Approval from Pollution Control Board.

17. BACKWARD AND FORWARD INTEGRATION

As forward integration, Entrepreneur may think of going for the production of newer dosage
forms.

18. TRAINING CENTERS/COURSES

For Ayurvedic & allied industry training and short term courses may be availed from the
Institutions of Aurvedic Research & Education in respective states. Also EDP centers.
Udyamimitra portal ( link : www.udyamimitra.in ) can also be accessed for handholding
services viz. application filling / project report preparation, EDP, financial Training, Skill
Development, mentoring etc.

Disclaimer:
Only few machine manufacturers are mentioned in the profile, although many machine
manufacturers are available in the market. The addresses given for machinery manufacturers
have been taken from reliable sources, to the best of knowledge and contacts. However, no
responsibility is admitted, in case any inadvertent error or incorrectness is noticed therein.
Further the same have been given by way of information only and do not carry any
recommendation.