Start Sugarcane business - Business Idea

Initially it might sound very small, but clear and well planned Sugarcane business is a major profit earning business in India. Let us first look into the requirements for this business

SPACE

• Small Level - 3 x 3 sqft space, it can be either a table also
• Medium Level - 5 x 5 sqft space
• Max Level - 10 x 10 sqft space

EQUIPMENT

Manual: Fully manual requires man drilled gear based grinding machine. This requires hard effort to rotate the wheel on its side to extract the juice. Operating cost is very less, no electricity, no fuel, requires very less maintenance of lubrication at times. Machine looks as in the left side.

Automatic: This is advance version of manual, this is operated by either electric motor or diesel engine to rotate the gear wheel, which reduces the hard effort of rotating, Using Diesel engine is the most popularly used in all the places, because of its low initial investment on engine.

Recent years this engine has advanced its level in hygiene and healthier aspects, people are concentrating more on flavors, cleanliness, but as this goes high, the initial investment also goes up. An automatic gear operated machine costs Rs.60,000, another version of the machine, is with instant chiller, has a pipe with 10C, so when juice pass through that pipe, gets chilled immediately, which cost Rs.1,20,000.

This seems to be a huge investment, but when properly planned and worked out can be recovered in 3 months time.

Sample Estimation of Sugarcane Juice:

1.Cost of sugarcane Rs.4/- per Kg.  One Kg will give 600ml of Juice.
2.Labour cost will be Rs.150/- per day for cleaning the sugar cane and running the crusher.
3.Disposable cup Varies from 60 Paise to 90 Paise. – Good quality at bulk rate will be 0.65 pasie
4.Lime and Ginger 25 Paisa.
5.Power charges will be two unit per 200 glass of juice (200 X 250ml glass = 50 Litters of juice)
6.Interest on cost of crusher – 18% interest on Investment – Hence per day Rs.23/- only.
7.Rent for the place. Rs 2000/- per month approximate – Hence per day Rs.80/- approximate.
8.Maintenance cost is Rs.200/- per month approximate. (320 Gear oil 0.5 Litter and 100 grams of grease)
9.Depreciation: At 20% per annum – Hence per day Rs.27/- only

Fixed Expenses: PER DAY
Interest –          Rs.23/-
Rent             -   Rs.80/-
Depreciation:     Rs.27/-
Power Charges – Rs20/-
Wages              Rs.150/-
Others.              Rs. 15/-
                      ----------
Total              Rs.315/- per day for sale of 100 Glass Juice = Per glass Rs. 3.00 approximate.
                    -----------
Cost of Sugarcane                                         Rs. 1.80
Disposable cup                                              Rs. 0.65
Lemon/Zinger/(Pepper/Masala powder etc     Rs. 0.25
Rent/Labor etc                                              Rs. 3.15
                                                                ______________
              Total Cost of Juice per Glass           Rs.5.85
                                                               ______________
Average Selling Price of Sugarcane juice of 250ml glass each will be Rs.10.00 approximate per glass to any level depending on the area and nature of service and ambience provided.

Real Life Entrepreneur

Now coming to the main section of the article, a real life entrepreneur, Cane-o-la, a banglore based sugarcane juice organisation, which focuses on selling varied flavors of sugarcane juice in a hygiene way, they have grown to en extent, which you will know when you understand their company turnover is 4 Crores, sounds surprising isn't it, but truth. Go through their website http://cane-o-la.com/, to learn more about them.

Contact me at bsathish78@gmail.com for further help and guidance, I have few research papers on starting this business, including business partners, loan arrangement etc.

You may also be interested in Fountain Soda Business