Project Feasibility Report On Bottling Plant Whisky Brandy Rum Vodka Gin From Rectified Spirit Ena

1. MARKET SURVEY CUM DETAILED TECHNO ECONOMIC FEASIBILITY REPORT (PROJECT FEASIBILITY REPORT) O N BOTTLING PLANT (WHISKY, BRANDY, RUM, VODKA, GIN) FROM RECTIFIED SPIRIT/ENA Published Date: 23 March 2014 For Latest Report – Visit www.eiriindia.org INDENTIFICATION & EVALUATION DIVISION FOR HI-TECH PROJECTS E I R I C O N S U L T A N T S & E N G I N E E R S * REGD. OFFICE * 4449, NAI SARAK, MAIN ROAD, NEAR CHANDNI CHOWK, DELHI - 11 00 06. (INDIA) (BETWEEN MARWARI KATRA AND ROSHAN PURA), PH : 91-11-23918117, 23916431, 45120361, 64727385, 23947058 E-Mail : eiriprojects@gmail.com, eiribooks@yahoo.com Web: www.eiriindia.org, www.eiribooksandprojectreports.com 1 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

2. C A U T I O N This project report has been prepared on the basis of information available with M/S. ENGINEERS INDIA RESEARCH INSTITUTE. The intention here is to provide preliminary information to the prospective entrepreneur. Prior to making a firm decision for investment in the project the entrepreneur must verify the various feasibility aspects together along with the addresses for the procurement of plant & machinery and raw materials independently. The information supplied in this report is obtained from the reliable sources but it is not guaranteed and the money once paid will not be refunded back in any case. Claims for incomprehensiveness of the project report will not be entertained and no legal action in this regard would be entertained in any case (Subject to Delhi Jurisdiction only). Any matter relating to our standard points covered in the report may be modified with in 5 days time only from the date of purchase. ENGINEERS INDIA RESEARCH INSTITUTE, 4449 NAI SARAK,DELHI-110006. 2 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

3. BOTTLING PLANT (WHISKY, BRANDY, RUM, VODKA, GIN) FROM RECTIFIED SPIRIT/ENA [EIRI/EDPR/1467] J.C. 248 CONTENTS  PROJECT AT A GLANCE  INTRODUCTION  USES AND APPLICATIONS  PROCESS DESCRIPTION  LIST OF MACHINERY AND EQUIPMENTS USED IN ALCOHALIC BEVERAGES PLANT  EFFLUENT TREATMENT AND DISPOSAL  EQUIPMENT REQUIREMENT  MANPOWER  PLANT LAYOUT OF LIQUOR BOTTLING PLANT  PROJECT IMPLEMENTATION SCHEDULE  B.I.S. SPECIFICATIONS  VARIOUS TYPES OF INDUSTRIAL ALCOHOL  PRODUCTION OF BRANDY  PRODUCTION OF SPIRIT FOR GIN  MANUFACTURING PROCESS OF WHISKY  MANUFACTURERS OF ALCOHOLIC BEVERAGES  SUPPLIERS OF RAW MATERIALS  SUPPLIERS OF COMPLETE PLANT AND MACHINERY 3 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

4. APPENDIX – A : 1. COST OF PLANT ECONOMICS 2. LAND & BUILDING 3. PLANT AND MACHINERY 4. FIXED CAPITAL INVESTMENT 5. RAW MATERIAL 6. SALARY AND WAGES 7. UTILITIES AND OVERHEADS 8. TOTAL WORKING CAPITAL 9. COST OF PRODUCTION 10. PROFITABILITY ANALYSIS 11. BREAK EVEN POINT 12. RESOURCES OF FINANCE 13. INTEREST CHART 14. DEPRECIATION CHART 15. CASH FLOW STATMENT 16. PROJECTED BALANCE SHEET 4 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

5. PROJECT AT A GLANCE i. Capacity of the plant Capacity of the plant Shift per day No. of working days ii. Utilities Power load Water iii. Manpower requirement Total iv. Project Schedule The project can be implemented in a period of xx months from zero date. = = = xxx Box /Day xxx xxx Days = = xxx KW xx KL/day = xx Nos. 5 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

6. BOTTLING PLANT (WHISKY, BRANDY, RUM, VODKA, GIN) FROM RECTIFIED SPIRIT/ENA [EIRI/EDPR/1467] J.C. 248 INTRODUCTION An Overview of the Indian Liquor Industry an estimated Rs. 18,000 crore per annum in spite of the fact that the per capita consumption of liquor in India is the lowest in the world. The total liquor industry is worth Rs. 2,000 crore. IMFL accounts for only a third of the total liquor consumption in India. Most IMFLs are cheap and are priced below Rs. 300 per bottle. Alcohol sales proceeds account for 45% of the total revenue collection in the country. Whiskey accounts for 60% of the liquor sales while rum; brandy any vodka account for 17% 18% and 6% respectively. MNC’s share is only 10%and they have been successful only in the premium and super premium ranges. Post WTO the government may have opened India to foreign distilleries, but the duty has been increased from 222% to 464-706%.This is due to the fact that there is a 100% customs duty, 150%contravening duty, local taxes, distributor’s margin, retailer’s margin and publicity charges. The cost is finally borne by the consumer. Though the government claims that this is being done to protect the domestic liquor industry, the domestic industry accounts for 99% of the market share. The alcohol industry is very important for the government. It generates 6 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

7. smuggling. As of now, only 45% of the sales are through legal channels and only 25% of this is duty paid for. Within India itself, the policy of alcohol retail differs form state to state. While some states like Maharashtra. Uttar Pradesh, and Tamil- Nadu have a liberal policy, come states like Haryana and Andhra Indian Liquor Industry is divided into two broad categories Indian Made Foreign Liquor (IMFL) Country Made Liquor Indian Liquor Industry is growing at 12-15% P.A over last 2 yrs. • Shift from country liquor to IMFL because of rising per capita. http://www.livemint.com/articles/2011/11/23210054/B oom-time-for-country-liquor.html Industry Structure Alcoholic beverages (8500 Crore) IMFL Country Liquor Rs 6150 Crore Rs 2350 CroreBrown Spirits White Spirits Licensed Illicit Whisky Vodka Brandy Gin Rum http://www.livemint.com/articles/2011/11/23210054/ Boom- time-for-country-liquor.html Major Competitors Manufacturer Brands United Breweries (UB) Group( Bangalore) King Fisher, Kalyani Black Label, Signature, Blue Riband Shaw Wallace (Calcutta) Haywards Jagajit Industries (Kapurthala, Punjab) Aristocrat Mohan Meakins (Solan, Himachal Pradesh) Golden Eagle Associated Breweries & Distilleries (Mumbai) London Pilsner, Smirnoff, Gilbeys Green Label, Malibu, Archers Peach Schnapps Legal Environment • Ban on direct advertising Excise regulations and Licenses • „Regulated‟ industry - movement, prices of intermediate goods (molasses, ethanol) tightly controlled - state governments exert considerable influence. • Subject to licensing under Industrial (Development and Regulation) Act, 1956 • Cap on licensed capacity; special license for expansion • Plethora of duties and taxes from bottling to sales stage; varying from state to state. This protectionist policy could prove to be counterproductive and lead to 7 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

8. Custom & Duties • Sales tax, Bottling Fee, Litre Fee, Vend Fee, Privilege Fee, Import/ export Pass duty • Other taxes levied are: Excise Duty : Liquor from spirits - Rs. 45/- bulk litre; Premium Malt Whisky - Rs. 60/- bulk/ litre; Litre Fee - Rs. 20/- bulk litre; Sales tax : 60%; cess 5% • Import duty on whisky, rum, gin & vodka, liqueur - 230 % www.crisil.com Social Environment • Increase in disposable income • Changing lifestyles of middle class Western culture influence • Changing Trends – Youngsters, Parties and Celebrations Hard liquor - from 21 to 25 • In India 40-50 % of all males and 1% of all females Beer - from 18 to 21 Minimum age consumed alcohol last yr. • 62% drinkers classified as light,29% as moderate drinkers and 9% as hard drinker. http://www.livemint.com/articles Prohibition in India Soon after independence, prohibition was imposed in the erstwhile state of Bombay. • The first large-scale movement against alcohol began in the 1970s, when rural women in various parts of the country protested against the sale of liquor in their villages. • Information and Broadcasting ministry of India banned the ads. • Even after the ban, liquor companies continued to advertise their drinks in the form of surrogate advertisements. 8 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

9. advertisements McDowell’s malt whisky McDowell’s Soda/water Radico Khaitan’s 8 pm whisky Radico Khaitan’s water Hayward’s 5000 Beer Hayward’s water/soda Derby Special Derby special soda Bacardi Liquor Bacardi Blast CDs & Cassettes Bagpiper liquor Bagpipers soda and cassettes Kingfisher Beer Kingfisher bottled drinking water Royal Challenger whisky Royal Challenger golf accessories & mineral water & cricket team White Mischief Liquor White Mischief holidays Smirnoff Vodka Smirnoff cassettes & CDs Economic Environment It is a well developed - Rs 8,200- 8500 Crores industry in India Past growth 12 % CAGR per annum • Brown spirits - particularly whisky, rum & brandy account for over 75 % of this market • South and North share 60% of market •Market size – 20 million cases in 1999 to 84 million cases in 2011 http://articles.economictimes.indiatimes.com/2010- 09- Threat of New Entrants • There are huge complexities and high regulations to get entry in this industry. The new players need to satisfy the licensing and need to get approvals by the states and central government. • For international players, the key is find the right partners and links who understand the Indian market and legislations. With liquor makers, both local and foreign, becoming active, competition is intense. • UB-Carlsberg, South African Breweries and some others are awaiting clearance following government stalemate on account of the Supreme Court judgment, the judgment has created a confusion whether the proposals related to FDIs and the issuing of licenses for the liquor industry will be addressed by the Central or the State governments. Legitimate business & their surrogate advertisements Brands Surrogate 9 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

10. A lot of mergers and acquisitions in the international arena have begun to impact the joint ventures. http://articles.economictimes.indiatimes.com/2010-09- Bargaining Power of Customers • The Liquor industry has witnessed the consumers always at a weaker end. • There is not much bargaining power in the hands of the consumers in Indian liquor industry as the prices are set by the forces of demand & supply and the demand for liquor here is high as compared to the supply. • Hence, the producers are at a beneficiary end and charge higher prices. • In India, a liquor brand is identified and is appreciated only on the basis of it’s higher price. • It is an interesting fact that Companies use “High Price” as one of it’s promotional strategy to attract the consumers. http://articles.economictimes.indiatimes.com/2010-09- Bargaining Power of suppliers •The key raw material for IMFL players is Molasses which is a by product of sugar. Molasses is distilled & processed to form rectified spirit called Ethanol. •The players which have primary distillation facilities in their Plants directly consume molasses, rest all have to purchase Ethanol. •As molasses demand arises only from ethanol demand, the demand supply scenario for ethanol determines the raw material prices for the IMFL Players.( www.crisil.com) Ethanol demand is expected to rise in future, when the commercial blending of ethanol with petrol (for producing Gasohol) will take off. • In Long term -Molasses supply is going to increase as more sugar manufacturers are expected to set up primary distilling facilities and as new sugar factories are expected to come up in the form of integrated plants with cogeneration & distilling facilities • The suppliers are able to play easily with the prices of these raw materials hence charging higher prices from the Liquor producers. www.crisil.com 10 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

11. Predictions regarding Raw Materials • It is predicted by the analysts that after the commercial production of “Gasohol” the prices of Molasses is likely to increase. www.crisil.com Rivalry within the industry & their Market Share The top five competitors in Liquor industry are: United Breweries (UB) Group( Bangalore) 48% Shaw Wallace (Calcutta) 36% Jagjit Industries (Kapurthala, Punjab) 6 % Mohan Meakins (Solan, Himachal Pradesh) 5.5% Associated Breweries & Distilleries (Mumbai) 4.5% www.oppapers.com Rivalry • Major players create competition on the basis of: – Looks of the liquor bottle – Pricing the product much higher – Innovative promotional campaign • Beer sales in India are forecasted to grow at CAGR of 17.2 % by 2012 • Future plans for the industry depicts strong growth for the Indian beer market as the major players like kingfisher have been quoted saying that they have significant expansion plans for the next few years.. 11 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

12. ETHYL AND METHYL ALCOHOLS ETYL ALCOHOL (Ethanol) unqualified, ‘alcohol’ refers to ethyl alcohol or ethanol. Pharmacology of alcohol is important for its presence in beverages (which have been used since recorded history) and for alcohol intoxication, rather than as a drugs. Alcohol is manufactured by fermentation of sugars: Alcohols are hydroxy derivatives of aliphatic hydrocarbons. When reaction is inhibited by alcohol itself. Starchy cereals, e.g. barley, when soaked produce Fermentation proceeds till alcohol content reaches – 15 %. Then the malt: ALCOHOLIC BEVERAGE There are a large variety of alcoholic beverages Malted liquors : Obtained by fermentation of germinating ereals; are undistilled-alcohol content is low (3-6 %) e.g. Beers, Stout. Now strong beers (upto 10 %) are also available. Wines : Produced by fermentation of natural sugars as present in grapes and other fruits. These are also undistilled. Light wines Claret, Cider; alcohol content 9-12 % cannot exceed 15 %. Fortified wines Port, sherry (alcohol 16-22 %): distilled beverages are added from outside. Effervescent wines Champagne (12-16 % alcohol): bottled before fermentation is complete. 12 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

13. Wines are called ‘dry’ when all sugar present has been fermented and ‘sweet’ when some is left. Spirits : There are distilled after fermentation; e.g. Rum, Gin, Whiskey, Brandy, Vodka etc. Though the alcohol content of these can very from 40-55 %, in India (and almost internationally) for all licensed brands it is standardized to 42.8 % v/v or 37 % w/w. alcohol content but on the presence of higher ethers, higher alcohols, aldehydes, esters, polymers, and volatile oils; many of these are formed during ‘maturation’ of the beverage. The taste, flavour and value of alcoholic beverages depends not only on Other forms of alcohol Absolute alcohol : 99 % w/w ethanol (dehydrated alcohol.) Rectified spirit : 90 % w/w ethyl alcohol-from mollases, by distillation. Proof spirit : It is an old term. If whisky is poured on gun powder and ignited and it explodes, then it was labeled to be of ‘proof strength’. If water is mixed to it, gun powder will not ignite. 100 % proof spirit is 49.29 % w/w or 57.1 % v/v alcohol. Alcohol is an astringent-precipitates surface proteins and hardens skin. By precipitating bacterial proteins it acts as an antiseptic. The antiseptic action increases with concentration from 20 to 70 %, remains constant from 70 to 90 % and decreases above that. That 100 % ethanol is more dehydrating but poorer antiseptic than 90 % ethanol, shows that antibacterial action is not due to dehydration of bacterial protoplasm. Alcohol does not kill bacterial spores. CNS : Alcohol is a neuronal depressant. Since the highest areas are most easily deranged and these are primarily inhibitory-apparent excitation and euphoria are experienced at lower plasma concentrations (30-100 mg/dl). Hesitation, caution, self-critcism and restraint are lost first. Mood and feelings are altered; anxiety may by allayed. With increasing concentration (100-150 mg/dl) mental clouding, disorganization of thought, impairment of memory and other faculties, alteration of perception and drowsiness supervene. At 150-200 mg/dl the person is sloppy, ataxic and drunk; 200- 300 mg/dl result in stupor and above this unconsciousness prevails, medullar centers are paralyzed and death may occur. Though, alcohol can produce anesthesia, margin of safety is narrow. 13 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

14. DIFFERENT ALCOHOLIC DRINK 1.WHISKY world. It is made of malt and molasses spirit, which is obtained by distillation of mash or cereal grains like maize, rice barley malt. Better the malt better the whisky. Large quantities of IMFL are manufactured in India and is the maximum sold alcohol. The content is whisky is 42.8%. 2.RUM Rum is a distillate from the fermented juice of sugarcane of molasses. RUM is characterized with its taste and aroma. Best rums are known to come from Jamaica, West Indies etc. The alcohol content of Rum is 42.8%. 3. BRANDY Brandy is generally obtained from fruits, thought the most commonly used fruit is grapes. The best quality of brandy is cognac, which is made in France. 4. VODKA Vodka is a sprit resulting out of distillation at very high proof. This results in virtual NPN existence of flavour in the resulting sprit,.Which is neutral , even after dilution required for palpability. The traditional source of making vodka has been potatoes. 5. BEER Beer is not a distillate like the drinks mentioned above but it is a beverage made by fermentation of malt obtained form carbohydrate rich material barley. Hops are used to add taste while yeast is used to ferment the beer. Beer is to two types :1.Pilsener or Lager 2.DraughtLager Beer is the most common bottled Beer found in almost all the retail shops in the country. This Beer is served chilled and is of two ypes.Mild Beer alcohol content of 6.75%.Strong Beer alcohol content of 8.75%.Draught Beer is served chilled in mugs and is generally available in Pubs only. It can be stored for 72 hours only and does not have any brand name. Mohan Meakins supports Draught Beer. Whisky is amongst the most popular distilled liquor known all over the 14 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

15. 6. GIN juniper berries and some other product including anglica roots, orange peel, cardamom, bitter almonds give it a kick and taste Whisky:- Gin, vodka, and related spirits like aquarit are distinguishable from whisky, rum and brandy which themselves have a number of common characteristics. The most evident difference is in colour, with gin an vodka normally being colourless white whisky, rum and brandy vary in shade from straw-coloured to the deepest brown. This immediate difference is linked with distinguishing features of composition and flavour which are reflected in the methods of production of the two troup of sprits. The aurd whisky comes from the Gaelic word wisge-beatha, as the Irish called it, incoming the water of life. The colour in whisky, rum and brandy oves it origin to the practice of ageing or maturing these spirits in wooden casks, which as containers have previously used for transporting some compatible liquid such as slerry, wine or molasses. Residues of previous contents, together with substance extracted from the wood itself, serve to give the maturing spirit a brown colour which in interest of standardization, is supplemented by the addition of caramel. The requirement for maturation in wood is now codified in lay standing whisky is the potable spirit obtained by distillation of an aqueous extract of an infusion of matted barley and after cereals that has been fermented with strains of sacctromyus ceramisial. Various types of whisky are produced in a number of different countries in the world. They differ principally in the nature and proportion of the cerels used as a raw materials along with matted barley and also in the type of still used for distillation. The principal types of whisky are also characterized of particular geographical regions of the world. In Scotland, the characteristics product is manufactured using only matted barley as the raw material and the fermented matt wort is distilled in batches in relatively small pot stills. The product, known as scotch melt whisky, is manufactured in relatively small distillations of which there are over hundred in Scotland. Scotch melt whisky is marketed both as a straight malt It is sweetened or un sweetened grain spirit flavoured with essential oil 15 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

16. whisky. Rum, the alcoholic beverage made from sugar cane has been known for centuries. The origin of the name "rum" is obscure. It may have been derived from the latin for sugar, saocharum. Another, and according to some sources more prpbable, origin of the word rum is the Devonshire diaret word run (=run), which British colonists took with them to the west Indies. Equally prpbables is a derivation from the spanish 'ran' (=run), for the spaniards may will have had distilleries in the west before the arrival of the British. Rum production is centured on the west Indies. The best known distilleries are situated in Jameica, Martinigue, Puerto Rico and Cuba, but Barbados, Trinidad, Haiti, Guadetoupe, the hirgin islands, the Dominican Republic and Guyana (known as Domeraca in the rum trade). All have told traditions of making rum. Rum is also produced in the U.S.A.; Brazil Peru, Mexico and parts of Asia and Africa. In general, rum is produced wherever the climate is suitable for the cultivation of sugarcane. man brands of which have recently become extremely popular throughout the world, and also as a blend with another type of whisky produced in Scotland, namely scotch grain whisky, or because it is distilled continuously in Coffey type patent stills, as patent-still whisky. Most scotch whiskies available on the international market consist of blends with 30 - 40% malt whisky. Within the blend, there may be as many as 20 - 30 individual malt whiskies and grain whiskies. These blends are, by law, matured for atleast three years and, in practice, this period is normally much layer. Unblended scotch malt whisky are usually matured for a minimum of 8 years. Throughout the world since at least the middle ages wine has been distilled to concentrate the alcohol to a higher percentage than occured in the original wine. These wines distillates have ben called aquavini, eaux-vie, weinbrand, cognac, branntwein, aguardienrite, aquarit and in English- speaking countries. Brandy is produced from wine in many parts of the world mainly in France. Some of it is for industrial use. A small amount is used for fortifying dessert wines. That produced for beverage purposes may be divided into the following classes - cognac, Armagnac, eaw-de-via and eaux-de-vie demarc. Brandy is also produced in most of the wine producing countries. 16 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

17. The term whisky without further qualification is universally understood to mean the product of alcoholic fermentation of the juice of the grape and other fruits. This not only excludes the fermented product of other fruit juices but when the definition is made more ridid, as in a legal standard it is usually specified that the whisky shall be made by the usual cellar treatment. The purpose of this is not only to restrict the original crude material to the grape juice also to limit all additions to those substances that occure naturally in sound grapes or which experience has shown to be of distinct benefit to the flavour or keeping qualities of the whisky. Although brandy, rum, & gin are substantially items in world markets, whiskies are by far the leading distilled alcoholic beverages; with those from Canada, Scotland & the U.S. accounting for most of the sales. There are 3 types of whisky manufactured from ripe grapes and to the fruits i.e. dry wine, Sweet wine and sparkling wine. A dry wine is one in which practically all the sugar certainly all that can be perceived by the taste has been by fermentation. Dry wine is wine in which the fermentation of the sugars is practically complete. A term 'proof' will always come in this report with which we must be familiar:- Proof: This term is connected with alcoholic liquor, which contains one-half its volume of alcohol of a Sp.gravity of 0.7939 at 15.6oC. i.e. the figure for proof is always twice the alcoholic content by volume. For ex: 100o proof means 50% alcohol by volume. 17 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

18. Whisky Types of whisky: Whisky is an alcoholic distillate from a fermented mash of grain distilled at less than 190o proof (95%) in such a manner that the distillate possesses the taste, aroma, and characteristics generally attributed to whisky. 1. Light Whisky: It has been distilled from at more than 160o (80%) & less than 190o (95%) proof and is stored in used or uncharred new oak containers. If light whisky is mixed with less than 20% by volume of 100o proof (50%) Straight whisky the mixture shall be disignated Blanded Light whisky 2. Rye, Bourbob whisky ; Bourbon whisky, rye whisky, wheat whisky, matt whisky is whisky which has been distilled at not exceeding 160o proof (80%) from a fermented mash of not less than 51% rye, corn, wheat, matted barlay, respectively, and stored at not more than 125o proof (62.5%) in charred new oak containers. 3. Straight Whisky ; Any of the whisky types mentioned above further quality as straight whisky by complying with the following: (i) withdrawn from the distillery at not more than 125o (62.5%) + not less than 80o (40%) proof & (ii) aged for not less than 24 months. 18 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

19. USES AND APPLICATIONS useful for children if given a little doze say about one tea spoon in milk or water every day. It kills to cold and cough and the effect larger quantity will work as wine. Whisky is a kind of wine generally used by human beings. It is very and for manufacture of several medicinal preparations. Whisky also kinds used in preparation of assences and flavours. It is used as a process material in the preparation of numerous organic compounds including synthetic drugs and dyestuffs especially for crystallization and purification. There are two types of whisky, one is white and the other id brown. The white brandy is made from the juice of fruit and the brown from the pulp. White brandy is used for the use by human beings and the brown for other purposes. Whisky is also used a preservative for anatomical specimens and as a dehydrating agent in microscopic technique. Apart from the above it is also used for the extraction of several drugs 19 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

20. MARKET SURVEY OVERVIEW * Indian Made Foreign Liquor (IMFL) Negative perceptions about alcoholic beverages widely prevalent This is a ‘regulated’ industry - movement, prices of intermediate goods (molasses, alcohol) tightly controlled - state governments exert considerable influence this is a well developed - Rs 8,200 crores (US $ 1907 million) - industry in India Major players in the alcoholic beverages market - United Breweries (UB) Group( Bangalore), Shaw Wallace (Calcutta), Jagajit Industries (Kapurthala, Punjab), Mohan Meakins(Solan, Himachal Pradesh), Associated Breweries & Distilleries (Mumbai) Per capita beer consumption in India - 0.5 litres; as against 20 litres in China, 100 litres each in USA & Germany , annually 20 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

21. LIQUOR : MARKET Market Size o o o o Market : 58 million cases Past growth 15 % CAGR per annum Brown spirits - particularly whisky, rum & brandy account for over 75 % of this market South and North share 60% of market Industry Structure o o Aristocrat (Jagajit Industries), Smirnoff, Gilbeys Green Label, Malibu, Archer’s Peach Schnapps(International Distilleries India), Passport (Seagrams), VAT 69, Black & White, Black Dog (United Distillers India) Industry in the organised sector - an industrial license is required to start manufacture Major brands (manufacturers) : Signature, Blue Riband (UB Group), 21 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

22. LIQUOR MARKET: FEATURES 22 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

23. 23 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

24. FUTURE Prohibition policies of states - vary from time to time Tax differentials curbs free movement of these beverages across states To avoid multiple taxes, manufacturers set up bottling plants in each state Curbs on advertisement of alcoholic beverages Finance constraints - banks reluctant to lend Constraints on availability of key raw material - molasses Bootlegging - a major concern Business Concerns Blend, body, firmness, heritage brand image and distribution - key factors International image - not successful in India; success rate < 10% Local strategy - a must; in fact, due to high (sales) tax rate differential, marketers of alcoholic beverages have state-wise marketing strategy. Key Success Factors Deregulation of this industry; at the state level Increase in disposable income Changing lifestyles of middle class Demand Drivers Industry expected to grow by 12% per annum Beer likely to grow to 7.6 million by the year 2003 - 04 Liquor industry to grow to 0.92 million by the year 2003 - 04 New capacities Beer : One (100,000 HLPA) Liquor One (500 KLPA) Expansions Beer: Two (765,000 HLPA) Liquor One (5,000 KLPA) Future liquor, three Indian brands figured in the "TOP 25 Fastest Growing Brands According to a survey conducted by a UK-based trade magazine on 24 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

25. in the world in 1994". While the survey is for both local as well as foreign sales, it takes into account only those brands which "export or produce more than 10 percent of their sales volumes overseas"- in other words, Indian- made Foreign liquor (IMFL) could actually be well on its way to becoming a preferred foreign liquor. SALES GROWTH OF MAJOR INTERNATIONAL BRANDS OF FOREIGN LIQUOR BRAND NAME (% of Growth in Sales) Source: The Drinks International Bulletin, U.K. The above data that it will bring some cheer to Indian IMFL manufacturers, as they are depressed owing to the entry of well-known International brands like Johnnie Walker, J & B, Something special, 100 Pipers and Teachers into the country. 25 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

26. "International Distillers & Vintners (IDV), the UK liquor major which has tied up with polychem Industries to launch and market foreign liquor brands like Teacher's whisky, smirnoff Vodka and Kelly's Cream liqueur, has a well- defined strategy for its Indian operations. IDV has adopted three ways of entering the Indian Market. First, where it will launch brands like teacher's by importing the liquor and bottling it locally. Second, where, like smirnoff Vodka and kelly's, it will manufacture the locally; Third, where it will launch admixture, blending imported liquors with India Produce. While IDV is yet to launch an admixture blended brand in India, sources say. The marketing strategy being played by one of the large group 26 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

27. SELECTED COMPANY WITH THEIR BRAND NAME BRAND NAME COMPANY NAME 27 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

28. the past eight years, climbing to 30 million cases (of 12 bottles of 750 ml each) per annum. That makes India the hottest whisky market in the world. Indian Consumption of whisky has grown at an average 14% annually for Alcoholic Drink Exports From India During 2011-2012 Sr No. 2012-13 Country Quantity in MT Value in Lacs 1 2 3 4 5 U Arab Emts Angola Ghana Singapore Nepal 19,774.00 19,818.00 16,163.00 10,018.00 6,404.00 18,592.00 17,113.00 5,704.00 4,236.00 2,861.00 6 7 8 Netherland Oman Tanzania Rep 2,000.00 1,263.00 4,059.00 2,662.00 1,507.00 1,434.00 9 Sri Lanka Dsr Vietnam Soc Rep Page Total 4,207.00 1,414.00 10 916 1,402.00 56,925.00 84,622.00 Major Importing Countries of Alcoholic Beverages from India during 2013 Sr No. Country Quantity in MT 1 USA 59,11,655.00 United Kingdom 25,97,591.00 3 Germany 35,88,932.00 4 Canada 10,57,682.00 5 France 15,70,586.00 6 Japan 9,08,776.00 7 Netherlands 12,04,592.00 Russian Federation 13,25,671.00 9 Spain 7,75,680.00 10 Belgium 6,84,638.00 Total 1,96,25,803.00 2013 Value in US$ Millions 14,549.00 2 6,458.00 5,776.00 3,335.00 2,698.00 2,370.00 2,352.00 8 2,101.00 1,915.00 1,841.00 43,395.00 28 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

29. PROCESS DESCRIPTION 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.Carbonation and beverage analysis type 11.Mobile metering systems 12.Product tracing for internal documentation by means of determination of volume in the filler line 13.Cleaning system 14.Automation and after-sales service Alcohol mass measuring system (spirit concentration meter) Reception system for alcohol/water mixtures Blending system for alcohol/water mixtures Water deaeration systems type Filtration systems Equipment for storage tank facilities Batch mixing system type Continuous in-line blending system Combi blending system Detailed Process description 1. Alcohol mass metering system(spirit concentration meter) •To determine the amount of excise duty due •Complete unit installed on a base frame •Possible for all ranges of flow rate 2. Receptionsystem for alcohol/watermixtures •Reception from tankers 29 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

30. •Determination of excise duty due •Determination of the mass of alcohol/water •Determination of the proportion of pure alcohol •Flow rate of up to 60,000 l/h possible •Use as a counterchecking device for verification purposes 3. Blending system for alcohol/water mixtures •Reception of alcohol/water mixture •Automatic concentration measurement (Better than 0.1% vol.) •Preselection of final concentration •Data capture and data transfer possible 4. Water Deaeration system •Preparation of high-quality beverage water •Minimisation of oxidation in the beverage •Reduction of residual oxygen to under 0.05 ppm possible •Minimisation of foaming during filling 5. Filtration systems •Continuous filtration •Batch filtration •Particle filtration •Sterile filtration 6. Equipment for storage tank facilities •Storage tank for product •Sterile tank for liquid sugar •CIP tank •concentrate starter tank with catwalks and working platforms •Automatic valve manifolds 7. Batch mixing system •batch mixing 30 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

31. •Flow rate up to 10,000 l/h •One measuring device for all components •12 components in the standard version •High mixing precision •Recipe memory and automatic running of program sequence 8. Continuous in-line blending system, •In-line blending process •No mixing tanks required •Flow rate up to 30,000 l/h; other ranges possible on application •compact arrangement, requires little space •Automatic control with recipe memory 9. Combined blending system •Syrup made available quickly •Uninterrupted production •starting quantities directed towards a predetermined production volume •Small tank volumes •Quick and easy to clean (cleaning possible between batches) •Extremely low syrup losses •High flow rate, thanks to the combination of batch and in-line processes 10. Carbonation and beverage analysis •CO2 dosing, measurement and correction in the finished beverage •Beverage analysis before the start of production •CO2 content automatically determined through recipe memory 11. Mobile metering units Particularly suitable for small or medium-sized pro- duction facilities. Depending on the version, diffe- rent metering tasks can be carried out: •flow metering 31 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

32. •Volume dosing with preselection of quantities •batch mixing using several component valves •filling control 12. Product tracing for internal documentation by means of •Determination of volume in the filler line •Determination of consumption of individual basic ingredients, concentrates, syrup, beverage water and alcohol/water mixture •Documentation and storage of analysis values •Determination of storage capacities by measurement of tank contents •Storage of available basic ingredients and concentrates 13. Cleaning system • available with one or more circuits, depending on requirements • flexible program control allows precise adaptation of the cleaning procedures to the task in hand • cleaning media are largely recuperated, for greater economy PACKAGING To keep the contents clean, fresh, and safe is the primary function of packages which adds to the convenience in distribution, handling, display, sale, opening, re-closing, use and reuse. 32 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

33. other suitable neutral or non-reactive containers. The bottles or containers shall be properly sealed. Used bottles shall be permitted if sanitized and cleaned in a hygienic way by the manufacturer as per the clause 5.6.1.1 of IS 14348:1996. However, the State Excise Department may permit if the bottles are thoroughly cleaned and sanitized in a hygienic manner by the producer. Containers, both before and after filling, shall pass for inspection before a brightly illuminated background and be viewed, if necessary, under magnification. Automatic inspection by specially designed units may also be employed. Defective containers or products shall be rejected. Packing Standards: Clear Coloured Bordeux Beer Bottles Liquor may be filled in glass bottles conforming to IS 1662:1974 any Green Coloured Beer Bottles Standard Capacity of Liquor Bottles BOTTLEEQUIVALENTBOTTLESLITERS SIZES FLUID (ML) 750 milliliters 721 PER CASE PER CASE 12 9 Bottling of Liquor will be done in 750 ml clear glass bottles. 33 Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports

34. Packaging Requirement: Packaging requirement includes 750 ml capacity bottles, corks, Aluminum foil, labels, and cases. The annual and per day requirement has been mentioned in The foil is in some ways a tamper proof seal, but it is also a barrier to moisture or any changes in temperature. Exposing the cork to high humidity can cause the cork to support some mold growth and low humidity will cause the cork to dry out and crack. This could cause the cork to disintegrate when you try to open it. The gestation period for humidity to effect the cork is significantly long, even without the use of foil as covering. The mold issue should be of especially little concern considering the mold would have to travel all the way down to the cork and then be able to survive in a highly acidic, low oxygen environment. This is practically impossible, however foiling also adds to the appearance of the Beer bottle. Requirement of foil per bottle is 3” X 3” or 0.0058 sq. m. Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports .

35. LIST OF MACHINERY AND EQUIPMENTS USED IN ALCOHALIC BEVERAGES PLANT MULTI-TUBE COAXIAL HEAT PASTEURIZER Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports .

36. Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports .

37. Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports .

38. CIP SYSTEM (FULLY AUTOMATIC) CIP System can be configured with the following options to specific needs 1. CIP tanks 2. CIP return pump with low point 3. Drain valve 4. Chemical addition system(s) 5. Steam control valve with condensate drip leg 6. CIP return flow switch 7. Heat exchanger ONLINE DUPLEX FILTER  Suitable to filter impurities and particles from sugar syrup, liquid, beverages.  Consist of 2 sets of filtration connected in parallel  Capacity 1000 LPH  Can be attached online in the interconnecting pipeline  Complete with 3 way valve to enable user to switch for either of the two filtration media Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports .

39. Rotary Bottle Rinsing Machine Uni block filling and cap sealing machine Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports .

40. Slat Chain Conveyor Inspection Conveyor Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports .

41. Rotery labelling machine Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports .

42. Case Packer Machine Automatic carton sealer model Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports .

43. Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports .

44. PROCESS FLOW CHART OF ALCOHOLIC BEVERAGES PROCESSING PLANT Schematic flow diagram of “Alcoholic Drink Bottling Plant” Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports .

45. GENERAL PLANT LAYOUT GMP/GHP CRITERIA FOR PLANT Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports .

46. Internal Structures & Fittings a) Flooring shall be smooth, impervious, with no crevices or damaged. Floors shall be constructed to allow adequate drainage. The junctions with walls shall be such that they are cleanable eg coved (shall not be with sharp angles). b) Roof shall be constructed so as to be gap free, water resistant, and finished so as to minimize build up of dirt and shedding of particles. Overhead fixtures, if any, shall be constructed and finished to minimise the build up of dirt and condensation and the shedding of particles. c) Walls and partitions shall have a smooth surface. Wall paint shall not be flaking off. There shall be no crevices to harbor pests. If applicable and as appropriate to the operations, the walls up to a desired height shall be impervious and easy to clean. d) Windows and Ventilators shall be easy to clean, and where necessary fitted with cleanable insect‐proof screens/ louvers. Window glasses shall be shatter‐proof. Mesh on windows (ventilator) shall not be cut/ damaged to avoid pest entry. e) Doors shall have smooth non absorbent surfaces and be easy to clean and disinfect as appropriate. Strip PVC/air curtains/ wire mesh doors with self closing devices shall be fitted at entry/exit points. f) Working surfaces that come into direct contact with food shall be in sound condition (free from cracks, crevices, open seams, etc), durable and easy to clean, maintain and disinfect. They shall be made of smooth (such as free from sharp internal angles or corners; protruding rivets, nuts and bolts, etc), non‐absorbent materials and inert to food, detergents and disinfectants under normal operating conditions. 2.3 Equipment a) Equipment shall be located so that it permits adequate maintenance and cleaning; functions in accordance with its intended use; facilitates good hygienic practices, including monitoring, if required. b) Equipment and re‐usable containers coming into contact with food shall be durable, designed and constructed to ensure that they can be adequately cleaned, disinfected where necessary, and Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports .

47. maintained to avoid the contamination of food. Where necessary, equipment shall be movable or capable of being disassembled to allow for maintenance, cleaning, disinfection, monitoring, etc. c) These shall be made of materials with no toxic effect in intended use and should not pass on colours, odours or taste to food. d) Non food contact surfaces of equipment should be free from unnecessary projections and crevices; and designed and constructed to allow easy cleaning and maintenance. e) Equipment used to cook, heat treat, cool, store or freeze food shall be designed to achieve the required food temperatures (and other parameters as relevant) as rapidly as necessary for food safety and suitability and to be effectively maintained and allow parameters to be monitored and controlled. These shall be periodically calibrated & records maintained. The frequency of calibration shall be based on the type of equipment, criticality of the measurement, location & extent of usage. f) Maintenance programmes shall be in place which shall cover maintenance schedule, responsibilities, methods, tools and gadgets, etc for effective functioning of the equipment . 2.4 Containers for waste and inedible substances a) Containers for waste, by‐products and inedible or dangerous substances shall be identifiable, suitably constructed and where appropriate made of impervious material. Those used to hold dangerous substances shall also be lockable. 2.5 Facilities Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports .

48. Drainage and waste disposal a) Drainage systems as relevant to the operations shall be appropriately designed and constructed. The sewage discharge shall comply with the requirements of environmental pollution Board (including ETP, rendering plant, etc as applicable). No manhole shall be situated inside any food processing area. Rainwater pipes, if inside, shall be constructed of impervious rust‐proofing materials. These shall not open in the food processing area. b) Drains, if any, in the processing area shall be made of impervious rust proofing material and shall be covered. These shall have adequate trapping devices to avoid entry of pests. Drains shall allow for effective cleaning as relevant (such as fat trap, pressure cleaning, etc). Cleaning a) Adequate facilities, suitable designated, where necessary, should be provided for cleaning raw materials and ingredients, food, utensils and equipment, etc. These facilities shall have an adequate supply of hot and cold potable water where appropriate. Personnel hygiene facilities and toilets a) Adequate means of hygienically washing and drying hands (as Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports .

49. relevant), including wash basins and supply of adequate water of potable quality shall be provided. Taps shall be non‐hand operated. b) Hand wash basins/ sanitizers should be situated to enable hand washing prior to start of operations. c) Toilets/ lavatories of appropriate hygienic design at suitable location with adequate natural or mechanical ventilation and natural or artificial lighting shall be provided. d) Adequate changing facilities for personnel should be provided, as appropriate to the operations Temperature control a) If operations require heating, cooling, cooking, refrigerating and freezing food, storing refrigerated or frozen foods, monitoring food temperatures, adequate facilities shall be available for the same. b) Where necessary, ambient temperatures shall be controlled to ensure the safety and suitability of food. Air quality and ventilation a) Adequate ventilation as appropriate to the food and the operations shall be provided for minimizing air borne contamination, controlling ambient temperatures and humidity where necessary which might affect the safety and suitability of food. These shall be achieved through either natural or mechanical ventilation. b) Food processing areas where operations result in release of fumes, smoke, steam or any vapour shall be equipped with an exhaust system or ventilation that can efficiently and effectively remove these. c) Ventilation systems shall ensure that air does not flow from unclean to clean areas and, where necessary, they can be adequately maintained and cleaned. Lighting a) Natural and / or artificial lighting shall be provided in food premises for various operations and other activities within the facility (eg sanitary conveniences). The intensity of lighting shall be adequate on the nature of operations (eg sorting, cleaning, grading, inspection and testing require greater intensity of light). Where necessary, lighting should be such that the resulting colour is not misleading. Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports .

50. b) Lighting fixtures shall especially where food or food contact surface is exposed to open), be shatter proof or protected with shatter‐proof covers to ensure that food is not contaminated by breakages. The fixtures shall be designed to avoid accumulation of dirt and be easy to clean. a) Suitable power back up facilities e.g generators, invertors etc shall be provided to ensure uninterrupted supply as necessary for production of safe food. a) Adequate facilities for storage of food, ingredients, packaging material and non food chemicals shall be provided. These shall be suitably designed and constructed as appropriate to operations (Further details at Cl 3.12). 3. Control of operation 3.1 Time and temperature control a) Where time and temperature is critical to the safety of a food, define temperature and time controls for heating, cooling, processing and storage taking into account the nature of food, its shelf life, the processing method, its packaging, intended use of the product. These controls shall reduce any food borne pathogen that may be present in the food to an acceptable level. 3.2 Control of other Specific process steps a) Define controls over other process steps which contribute to food hygiene which may include cleaning, sorting, chilling, thermal processing, irradiation, drying, chemical preservation, vacuum or modified atmospheric packaging, etc. 3.3 Specifications a) Define specifications for products at various stages of operations as relevant for ensuring food safety and compliance to regulatory and statutory requirements. These specifications shall be based on sound scientific principles. Document monitoring procedures, action limits and analytical methods. Maintain records. 3.4 Microbiological cross contamination a) When processing food, adequate steps shall be taken to prevent the same from microbiological cross contamination. b) Raw, unprocessed food should be effectively separated either Visit https://www.eiriindia.org for latest Formulations, Books and Bankable Project Reports .