Investing Into Food Grade Calcium Propionate

 

Calcium propionate has the molecular formula Ca(C2H5COO)2 and is also known as calcium propanoate. Calcium propionate is made when calcium hydroxide reacts with propionic acid, and it can also be found in certain varieties of butter and cheese. It's used as a mold inhibitor and can be found in a variety of dairy products, animal feedstock, and agricultural products. Calcium propionate is a food preservative that is added to baking items to extend their shelf life. Calcium propionate is used as a food supplement and given to cows to avoid milk fever in the agricultural sector.

 

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According to NIIR PROJECT CONSULTANCY SERVICES (NPCS), the calcium propionate market is projected to grow at a CAGR of 5.6%, to reach a value of USD 363.3 million by 2023.

 

Latest market drifts: -

Because of shifting customer preferences for food products, the global calcium propionate market is rising. The demand for calcium propionate has increased as people's understanding of their health has grown, as has their lifestyle. It kills microorganisms such as viruses, bacteria, algae, and fungi by acting as an antimicrobial agent. As a result, consumer demand is rising, causing the market to rise. The global market for calcium propionate is growing as the demand for food preservatives grows. As compared to other alternatives such as sulphites, sorbates, and others, it is a very cost-effective commodity, and as a result, its demand is growing in the industry. The expansion of processed food markets, especially in emerging economies such as India and China, is expected to open up enormous opportunities for the industry.

 

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Increase demand of preserved foods: -

The global demand for frozen and ready-to-eat foods such as burgers, hot dogs, toast, pizzas, cakes, and other similar items is growing as customers become more time-pressed and accept the convenience of freezer and microwave cooking.



In the forecast era, such demands are projected to have a positive effect on the use of preservatives like calcium propionate. ​ The global food and beverage industry's revenue rose from USD 100,297 million in 2017 to USD 155,488 million in 2019, indicating preserved foods' market potential. The growing meat industry in recent years, and heightened awareness of proper meat storage due to the result of COVID-19's current spread, is expected to drive demand for preservation products such as calcium propionate in the coming years.

 

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Demand based on form: -

The market is divided into two types: dry and liquid. In comparison to liquid calcium propionate, the dry form of calcium propionate is expected to expand faster during the forecast era. The dry calcium propionate segment dominates the market due to factors such as ease of mixing and greater dispersion in the food matrix.

 

Global Arcade: -

Calcium Propionate Market was worth USD 263.24 million in 2018 and is expected to hit USD 401.06 million by 2026, with a CAGR of 5.38 percent between 2019 and 2026. North America consumes the most calcium propionate, accounting for about 35% of the global demand.



Due to high production and consumption of bakery and rush-hour food items such as noodles and pasta, countries such as the United States and Canada are major contributors to this regional market. Asia Pacific is the fastest developing region in this market with the swelling call for calcium propionate on the backdrop of the cumulative population and shifting habits of food feasting in countries such as China, India, Japan, and Australia. Some of the prominent manufacturers in the global market of calcium propionate ADDCON (Germany), Fine organics (India), Kemira Oyj (Finland), Impextraco NV (Belgium), Krishna Chemicals (India)etc.

 

 

Conclusion: -

NPCS is a well-known technical consultancy providing focused services and we have been following stringent system and procedure to ensure only top quality strictly in conformity with delivering the needs of our clients in this rapidly growing & changing market. For the further requirement of business investment in projects like these, kindly contact Niir Project Consultancy Services (NPCS).

 

 

 

ABOUT NPCS

 

NIIR PROJECT CONSULTANCY SERVICES (NPCS) is a reliable name in the industrial world for offering integrated technical consultancy services. NPCS is manned by engineers, planners, specialists, financial experts, economic analysts and design specialists with extensive experience in the related industries.

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And before diversifying/venturing into any product, wish to study the following aspects of the identified product:


• Good Present/Future Demand
• Export-Import Market Potential
• Raw Material & Manpower Availability
• Project Costs and Payback Period


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The report includes other market data like key players in the Industry segment along with their contact information and recent developments. It includes crucial information like raw material requirements, list of machinery and manufacturing process for the plant. Core project financials like plant capacity, costs involved in setting up of project, working capital requirements, projected revenue and profit are further listed in the report.


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Our Market Survey cum Detailed Techno Economic Feasibility Report Contains following information:

 

 

Ø  Introduction

·         Project Introduction

·         Project Objective and Strategy

·         Concise History of the Product

·         Properties

·         BIS (Bureau of Indian Standards) Provision & Specification

·         Uses & Applications

 

Ø  Market Study and Assessment

·         Current Indian Market Scenario

·         Present Market Demand and Supply

·         Estimated Future Market Demand and Forecast

·         Statistics of Import & Export

·         Names & Addresses of Existing Units (Present Players)

·         Market Opportunity

 

Ø  Raw Material

·         List of Raw Materials

·         Properties of Raw Materials

·         Prescribed Quality of Raw Materials

·         List of Suppliers and Manufacturers

 

Ø  Personnel (Manpower) Requirements

·         Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel

 

Ø  Plant and Machinery

·         List of Plant & Machinery

·         Miscellaneous Items

·         Appliances & Equipments

·         Laboratory Equipments & Accessories

·         Electrification

·         Electric Load & Water

·         Maintenance Cost

·         Sources of Plant & Machinery (Suppliers and Manufacturers)

 

Ø  Manufacturing Process and Formulations

·         Detailed Process of Manufacture with Formulation

·         Packaging Required

·         Process Flow Sheet Diagram

 

Ø  Infrastructure and Utilities

·         Project Location

·         Requirement of Land Area

·         Rates of the Land

·         Built Up Area

·         Construction Schedule

·         Plant Layout and Requirement of Utilities

 

Project at a Glance

Along with financial details as under:

 

  •     Assumptions for Profitability workings

  •    Plant Economics

  •    Production Schedule

  •    Land & Building

            Factory Land & Building

            Site Development Expenses

  •    Plant & Machinery

             Indigenous Machineries

            Other Machineries (Miscellaneous, Laboratory etc.)

  •    Other Fixed Assets

            Furniture & Fixtures

            Pre-operative and Preliminary Expenses

            Technical Knowhow

            Provision of Contingencies

  •   Working Capital Requirement Per Month

             Raw Material

            Packing Material

            Lab & ETP Chemical Cost

           Consumable Store

  •   Overheads Required Per Month And Per Annum

         Utilities & Overheads (Power, Water and Fuel Expenses etc.)

             Royalty and Other Charges

            Selling and Distribution Expenses

  •    Salary and Wages

  •    Turnover Per Annum

  •   Share Capital

            Equity Capital

            Preference Share Capital

 

  •    Annexure 1:: Cost of Project and Means of Finance

  •    Annexure 2::  Profitability and Net Cash Accruals

                Revenue/Income/Realisation

                Expenses/Cost of Products/Services/Items

                Gross Profit

                Financial Charges     

                Total Cost of Sales

                Net Profit After Taxes

                Net Cash Accruals

  •   Annexure 3 :: Assessment of Working Capital requirements

                Current Assets

                Gross Working. Capital

                Current Liabilities

                Net Working Capital

                Working Note for Calculation of Work-in-process

  •    Annexure 4 :: Sources and Disposition of Funds

  •    Annexure 5 :: Projected Balance Sheets

                ROI (Average of Fixed Assets)

                RONW (Average of Share Capital)

                ROI (Average of Total Assets)

  •    Annexure 6 :: Profitability ratios

                D.S.C.R

                Earnings Per Share (EPS)

               

             Debt Equity Ratio

        Annexure 7   :: Break-Even Analysis

                Variable Cost & Expenses

                Semi-Var./Semi-Fixed Exp.

                Profit Volume Ratio (PVR)

                Fixed Expenses / Cost 

                B.E.P

  •   Annexure 8 to 11:: Sensitivity Analysis-Price/Volume

            Resultant N.P.B.T

            Resultant D.S.C.R

   Resultant PV Ratio

   Resultant DER

  Resultant ROI

          Resultant BEP

  •    Annexure 12 :: Shareholding Pattern and Stake Status

        Equity Capital

        Preference Share Capital

  •   Annexure 13 :: Quantitative Details-Output/Sales/Stocks

        Determined Capacity P.A of Products/Services

        Achievable Efficiency/Yield % of Products/Services/Items 

        Net Usable Load/Capacity of Products/Services/Items   

       Expected Sales/ Revenue/ Income of Products/ Services/ Items   

  •    Annexure 14 :: Product wise domestic Sales Realisation

  •    Annexure 15 :: Total Raw Material Cost

  •    Annexure 16 :: Raw Material Cost per unit

  •    Annexure 17 :: Total Lab & ETP Chemical Cost

  •    Annexure 18  :: Consumables, Store etc.,

  •    Annexure 19  :: Packing Material Cost

  •    Annexure 20  :: Packing Material Cost Per Unit

  •    Annexure 21 :: Employees Expenses

  •    Annexure 22 :: Fuel Expenses

  •    Annexure 23 :: Power/Electricity Expenses

  •    Annexure 24 :: Royalty & Other Charges

  •    Annexure 25 :: Repairs & Maintenance Exp.

  •    Annexure 26 :: Other Mfg. Expenses

  •    Annexure 27 :: Administration Expenses

  •    Annexure 28 :: Selling Expenses

  •    Annexure 29 :: Depreciation Charges – as per Books (Total)

  •   Annexure 30   :: Depreciation Charges – as per Books (P & M)

  •   Annexure 31   :: Depreciation Charges - As per IT Act WDV (Total)

  •   Annexure 32   :: Depreciation Charges - As per IT Act WDV (P & M)

  •   Annexure 33   :: Interest and Repayment - Term Loans

  •   Annexure 34   :: Tax on Profits

  •   Annexure 35   ::Projected Pay-Back Period And IRR