Hing Manufacturing Project Report, Plan

Introduction to Hing Manufacturing Project Report (Asafoetida), Business Plan: Compounded Asafoetida, Hing business is one among the appropriate best business ideas for a young entrepreneur when they desire to initiate with a small investment on a small scale. In this post, you will get the complete steps on how to initiate a compounded Asafoetida or the Hing manufacturing business and its important aspects.

Asafoetida is a plant. It provides a pungent odor and tastes bitter. Asafoetida is often included in cosmetics and as a flavoring component in foods and beverages. In India, several recipes utilize Hing as an essential component.

Anyone can begin a Hing manufacturing business with less capital. The business can be easily operated in a small region and only take care of the product distribution.

The domestic market and the international market have a great demand for this Hing. The raw material for Hing manufacturing is acquired particularly from Afghanistan and Iran.

A guide to Hing Manufacturing Project Report (Asafoetida), Business Plan

Hing (Asafoetida)
Hing (Asafoetida)

Varieties of Hing: We have generally two main varieties of Asafoetida. They are Hing Kabuli Sufaid or Milky white Asafoetida and Hing Lal or Red Asafoetida. Asafoetida is acrid and bitter and imparts a strong displeasing pungent smell because it has sulfur compounds in it.

The white or pale variety is water-soluble, but the dark or black one is oil soluble. Since pure Asafoetida is not used as the flavor is very strong, it is mixed along with starch and gum and later sold in the market as compounded Asafoetida. It is even seen in powdered texture or tablet forms.

There is a high requirement for good quality compounded Asafoetida in the domestic and international market. The major importing countries are UK, Belgium, Yemen, Malaysia, Oman, Kenya, Switzerland, the UAE, and other countries.

Business plan for starting in manufacturing Business

Firstly, you to craft a perfect business plan for starting any kind of business unit which includes

  • Implementation schedule
  • List of approvals required
  • Area required
  • Raw materials
  • List of machinery
  • Manufacturing
  • Project economics
  • Profitability

Implementation schedule of HingManufacturing Business

  • Market analysis and demand, applying for loan 0 – 1 month
  • Preparation of business plan 1 – 2 months
  • Financial support or investment 2– 4 months
  • Selection of location and establishment of unit 3 – 4 months
  • Power and water connection facility: 4 – 5 months
  • Building construction and shed development 5 – 6 months
  • Machinery and equipment purchase 6 – 7 months
  • Procuring raw materials and recruiting of manpower 8 – 9 months
  • Trial operations 10th month

List of licenses required to start Hing Manufacturing Business

Registration of firm: You may start your business either as a Proprietorship or as a Partnership company.

GST registration: It is obligatory to acquire the GST number for beginning any business, so, you have to apply for the GST too.

Trade license: It is simple to obtain a trade license by approacHing the state local organizations.

MSME/SSI registration: If you need any funds or some grants from the government then, MSME/SSI Registration is the best option to avail such relaxations for your business as they offer such schemes for support the businesses.

Trademark:  Trademark registration is so significant to prevent any complications after starting your brand in the market so it’s noteworthy to have the trademark registration well in advance you begin the Hing manufacturing business.

Food Safety and Standard Authority of India (FSSAI): The Compounded Asafoetida or Hing is categorized as the food industry, hence, permission from FSSAI (Food Safety and Standard Authority of India), is compulsory for any food associated business, and Hing manufacturing is not an exception.

IEC code: When you are planning to export the processed Hing, it is mandatory to get the IEC code for exporting your product to other countries. Hence, obtain the IEC code before initiating the business. 

Area required for establisHingHing Manufacturing Business Unit

Identifying the location for any venture is a vital task; hence you should be aware while selecting an area or place for the concerned business. You can start with a Hing manufacturing unit with an area of about 500 sq. ft. This location should be centrally located and must minimize the expenses of your transportation. This should be near to your target market and close to your raw material dealer. The place must have the necessary water and power supply options for the functioning of your unit.

Raw materials for Hing ManufacturingBusiness

The primary raw material for Hing’s business is Asafoetida in concentrated form. The quality concentrated Asafoetida is based on volatile oil content that imparts it the specific odor it has. The concentrated Asafoetida will be stored for a longer period if the moisture is less in it. Apart from that, plastic bags are used to store the concentrated Asafoetida.

The quality of the Hing relies on the raw material used during the concentrated Asafoetida. Hence, it is essential to be vigilant while buying the raw material used for the manufacturing of concentrated Asafoetida. It is suggested to contact the supplier who can deliver the best quality raw material at a reduced rate.

Hing manufacturing plant machinery

Moreover, one must keep in mind the provisions like water facility, power connection, and labors who have to operate the machines.

A few of the necessary machines are:

  • Mixer Grinder
  • Tableting machine
  • Milling unit
  • Packaging Unit

Cost of Hing Manufacturing Machine

A fully automated Hing manufacturing machine is available from Rs. 3 lakhs and some of the advanced machines are even purchased at Rs. 8 lakhs that have much more capacities than the basic models. Depending on the unit capacity and the capital you have it can be selected. 

The manufacturing process of Hing

In case if you miss this: Neem Oil Manufacturing Project Report.

Manufacturing Process of Hing
Making Process of Hing

Compounded Asafoetida manufacturing process

Once the appropriate machinery is selected, the next process in the manufacturing of compounded Asafoetida is described in a stepwise manner.

Step 1: Soak in water: You have to take the pasty mass of Asafoetida and then soak it in water.

Step 2: Mixing: Next add the ingredients in the appropriate quantities by using a mixer grinder. Next, add the previously soaked slurry here and agitate properly.

Step 3: Milling: Now compounded Asafoetida will be made into a powdered texture using a milling machine.

Step 4: Tablet form: Generally, in the market, Asafoetida is seen in powdered form but can be made into tablet form by tablet making machine.

Step 5: Packaging: After these above steps are accomplished, the Hing powder or compounded Asafoetida will be packed in quality polythene bags by a packaging machine.

Hing Manufacturing Project Report/ Economics of small-scale Hing Manufacturing Business

You may also check this: Hing Farming Practices.

Fixed Capital

a. Land & Building: 600 Sq ft @ Rs. 10,000 Rented

b. Machinery and Equipment: Rs. 4,25,000

Working Capital

A. Staff and Labour: Rs. 1,72,000

B. Raw material per month: Rs. 1,76,675

C. Utilities per month: Rs. 8,000

D. Other Contingent Expenses per Month: Rs. 1,75,000

Total Working Capital per month = A + B + C + D = 1,72,000 + 1,76,675 + 8,000 + 1,75,000 = Rs. 5,31,675.

Total Capital Investment

Fixed capital = Rs. 4,25,000

Working Capital (on 3 months basis) = Rs. 15,95,025

Total = Rs. 20,20,025.

Financial analysis of Hing Manufacturing business

a. Cost of Production (Per Year): Rs. 66,24,603

b. Turnover (Per Annum): Rs. 72,00,000

c. Net Profit Per Annum:

Net Profit = Turnover per Year – Cost of Production = 72,00,000 – 66,24,603 = Rs. 5,75,397.

d. Net Profit Ratio = (Net Profit per year / Turnover per Year) X 100 = (575397 / 7200000) X 100 =     7%

e. Rate of Return = (Net Profit per year / Total Investment) X 100 = (575397 / 2020025) X 100 = 28.48%.

Break-Even Point (B.E.P.)

Interest on investment @ 10%: Rs. 2,02,003

40% of wages andsalaries: Rs. 68,800

40% of other expenses (except rent): Rs. 70,000

Rent: Rs. 1,20,000

Total: Rs. 4,60,803.

Break- Even Point (B.E.P.) = [Fixed Cost/ (Fixed cost + Profit)] X 100 = 460803/(460803+575397)X100 = 460803 / 1036200 X 100 = 44.47%.


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