Library
Part 7/11 Money Matters.

7.1 Setup Cost (₹ 5 Lakh Project Plan)

ItemDescriptionCost (₹)
1️⃣ SNL Heat Pump Dryer (20 kg Model)Core machine with IoT panel, trays & controller3,00,000
2️⃣ Accessories & SetupWiring, table, weighing scale, packing tools etc.40,000
3️⃣ Initial Raw Material & Packaging StockFruits, veggies, herbs + pouches + labels25,000
4️⃣ Publicity & SamplingPosters, demo packs, WhatsApp campaigns15,000
5️⃣ Working Capital (3 months buffer)**Electricity bills, transport, small repairs1,20,000
TOTAL PROJECT COST
₹ 5,00,000 (approx.)

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7.2 Financing Plan (How ₹ 5 Lakh Gets Arranged Easily)

Under schemes like PM-FME (Prime Minister’s Formalization of Micro Food Processing Enterprises) and State MSME Support Programs, you can easily blend loan + subsidy.

SourceAmount (₹)Share (%)Notes
Own Investment1,40,00028 %Cash + in-kind (renovation / space)
Bank Loan2,60,00052 %Term loan at ~10 % interest
Govt Subsidy (Grant)1,00,00020 %25 % eligible under PM-FME

💡 In short: ₹ 1.4 Lakh of your money opens the door to a ₹ 5 Lakh business.

That’s less than what many people spend on a two-wheeler today!

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7.3 Working Capital Logic (Daily Cash Flow View)

ParticularUnitCost (₹)Notes
Electricityper day80–1206–8 hrs operation
Labour / Self Valueper day300if you do it yourself = savings
Raw Materialper day1,000–1,20080–100 kg fresh input
Packaging & Transportper day200–300Zip bags & delivery

👉 Average daily cost ≈ ₹ 1,500–₹ 1,800.

Output sold ≈ ₹ 3,000–₹ 4,000.

Profit margin: ₹ 1,000+ per day (20–25 days = ₹ 25–30 K/month).

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7.4 Price, Profit & Break-Even (Simple Table View)

ProductRaw Input (kg)Sale Value (₹/kg dried)Dry Output (kg)Total Sales (₹)Profit (₹/Batch)
Tomato Flakes202502500200
Chilli Powder204002.51,000500
Aam Papad2060031,800700
Cooked Poha Mix2050042,000800

📊 Average batch profit: ₹ 400–₹ 800

4 batches/day = ₹ 1,600–₹ 3,000

25 days × avg ₹ 2,000 = ₹ 50,000 monthly turnover, ₹ 25,000 profit.

💬 Break-even = 10–12 months (even faster if you use network jobs).

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7.5 How Bigger Effort Gives Bigger Returns

LevelWorking HoursTurnover (₹/month)Profit (₹/month)Example
Level 1 – Part Time3 hrs40 K15 KRekha Kota – Neighbourhood Drying
Level 2 – Semi Pro5 hrs70 K30 KRamesh Nashik – Contract Drying
Level 3 – Network Active7 hrs1.2 L50 KVandana Pune – App Orders
Level 4 – Full Scale10 hrs + 1 Helper2 L80 KRaghav Ahmedabad – Hotels
Level 5 – Own BrandFull Time + Marketing4 L +1.5 L +Suhasini Hyderabad – Retail Packs

💬 Soch lo — for every extra hour you give, the business gives extra income — without extra rent or power bills.

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7.6 Why Banks Like This Project

1. Asset-based: Machine is movable collateral.

2. High cash turnover: Daily sales, quick recovery.

3. Low default risk: Product is perishable → fast cash.

4. Government priority sector: Fits MSME & Food Processing subsidy lines.

5. Women & Youth friendly: Adds social impact value.

💬 Banks love simple math: ₹ 5 lakh loan = ₹ 25,000 monthly income.

That’s solid repayment capacity and impact in one line.

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7.7 Little Extras That Boost Profit

• Sell samples: 100 g pouches of dried tomato/palak at ₹ 30–40.

• Offer custom jobs: ₹ 15–₹ 40/kg drying service for others.

• Join SNL Network: Free listing = extra orders at zero cost.

• Do seasonal storage: Buy cheap in harvest season, dry & sell later at 3× price.

💡 Example:

A farmer dried amla in January @ ₹ 20/kg; sold dried amla in May @ ₹ 180/kg.

His dryer owner earned ₹ 45/kg for conversion + profit share — total ₹ 22,000 in a month.

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💬 In Simple Words

This is one of those rare projects where low investment, low risk, and high repeat business meet in one line.

You don’t chase customers — food keeps coming; it always will.

💬 “Ek baar machine chali, phir earning ruki nahi — bas season badla, item badla.”

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