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Agar Agar (Bacteriological Grade) Manufacturing Industry

Agar Agar (Bacteriological Grade) Manufacturing Industry.

Bacteriological Grade for Culture Media, Pharmaceutical Industry, Dairy Products, Air Freshener Gel, Dentistry and Food Grade

 

Agar-agar belongs to the family of galactan polysaccharides. Galactan polysaccharides are complex linear sugar polymers containing 22 galactose molecules. It is present in the cell walls of Rhodophyceae class of red algae. Agar is produced in several species of marine algae found across the globe. Most commercial agar-agar is extracted from Gelidium and Gracilaria species. Other commonly used species include Pterocladia and Gelidiella.

Bacteriological grade agar is used in clinical applications, auxotrophic studies, bacterial and yeast formation studies, bacterial molecular genetics applications as well as in mammalian and plant tissue cultures. Agars are used in final concentrations of 1-2% for solidifying culture media. Smaller quantities of agar (0.05-0.5%) are used in culture media for motility studies (0.5% w/v) and growth of anaerobes (0.1 %) and microaerophiles.

Agar-agar is a unique natural hydrocolloid obtained from the red seaweeds of Gelidium and Gracilaria. These gels are considered more compact and resistant as compared to other gelatin or carrageenan gels. The product’s gel strength is also considerably higher as compared to gelatin. The product also eliminates the need for the addition of any foreign substance such as acids, sugar, proteins and cations for optimizing food texture or flavor.

Uses:

Agar or agar-agar is a jelly-like substance, obtained from algae. Agar is derived from the polysaccharide agarose, which forms the supporting structure in the cell walls of certain species of algae, and which is released on boiling. These algae are known as agarophytes and belong to the Rhodophyta (red algae) phylum. Agar is actually the resulting mixture of two components: the linear polysaccharide agarose and a heterogeneous mixture of smaller molecules called agaropectin.

·         Agar Agar is widely used as a solidifying agent for preparation of culture media.

·         An Agar plate or Petri dish is used to provide a growth medium using a mix of agar and other nutrients in which microorganisms, including bacteria and fungi, can be cultured and observed under the microscope.

·         Since it is indigestible for many organisms, that microbial growth does not affect the gel used and it remains stable. Agar is often dispensed using a sterile media dispenser.

·         In the pharmaceutical industry agar has been used for many years as a smooth laxative. In orchid nurseries, agar gels containing appropriate nutrients are used as the growth substrate to obtain clones or copies of particular plants. Meristems – the part of the plant with actively dividing cells, usually the stem tips – are grown in the gel until there has been sufficient root development and growth for them to be transplanted. An advantage of this system is that the plants can be cultured in a sterile environment.

·         Agar-agar gum is commonly used as an ingredient in dairy products such as yogurt, cheese, creams, custard, spreads, curd, mousses, puddings, infant formula, and smoothies. It can jellify, thicken, and stabilize food items at a lesser concentration level. These properties of solidifying and stabilizing dairy products make agar-agar gum a vital ingredient in the dairy industry. Moreover, this gum has non-nutritive characteristics that makes it advantageous due to the increased demand for no-sugar, no-fat, and no-carbohydrate products. Additionally, several milk-based local desserts in APAC also use agar-agar gum to jellify and it also can be used as a substitute for gelatin.

·         Agar Agar as a culture media is widely used for practically all pathogenic and nonpathogenic bacteria and fungi because it is not easy to metabolise and has a good gel firmness, elasticity, clarity and stability. Because of its high gellifying power and its vegetable origin, Agar Agar constitutes a natural non-toxic matrix for the formation of culture media in Microbiology.

Applications:

Culture Media: Because of its high gellifying power and its vegetable origin, Agar Agar constitutes a natural non-toxic matrix for the formation of culture media. It is widely used for practically all pathogenic and nonpathogenic bacteria and fungi because it is not easy to metabolise and has a good gel firmness, elasticity, clarity and stability.

Plant Tissue Culture: The major application of Agar Agar is in the field of plant tissue culture. Tissue culture is emerging as the standard method for the propagation of orchids and other ornamental plants, vegetables, fruits and other agricultural products and this has increased the demand for Agar Agar.

Dentistry: In prosthetic dentistry, Agar Agar is used in the preparation of dental casts. It is an elastic impression material and it can be reused for making multiple impressions.

Air Freshener Gel: Agar Agar is being used in gel form in Air Fresheners. It will have a gel texture with the essential oils infused within it.

The global agar agar gum market size was estimated at USD 214.98 million in 2015 and is anticipated to grow at a CAGR of 4.9% from 2016 to 2025. Growing demand for dairy products in line with the westernization of diets has aided industry growth in recent years. The product is widely used in dairy products such as milk, cheese, yogurts, creams, custard, curd, spreads, mousses, puddings, infant-formula, confectioneries, beverages, and smoothies.

Gelling and thickening properties of agar agar are anticipated to drive the agar agar gum market during the forecast period. The F&B industry is likely to witness an increase in demand for agar agar gum, in the next few years, as a stabilizer and solidifying agent. Agar agar gum is preferred over other polysaccharides due to the large hystersis between the melting and setting temperatures of agar agar gum, an unusual property of a polysaccharide. Agar-agar is primarily utilized in the F&B industry, due to high compatibility of agar agar gum in sugary environment, in order to provide stable structure to concentrated sugary system. Thus, the demand for agar agar gum is expected to rise significantly from sugary food products even after the forecast period. However, rising health concerns (diabetes, high blood pressure, obesity, etc.) due to these processed sugary products are likely to hamper the agar agar gum market in the near future.

One driver in the market is growing demand from baking and confectionery industry. Bakery and confectionery products include products that are jellified for a prolonged shelf life and appealing look. The latter is vital because visual appeal plays an important role in the purchase decision of consumers, especially in the bakery industry. Agar-agar gum prevents the products from sticking and makes them more palatable. The availability of a variety of agar-agar gum in the market is driving its growth.

The development of new products and applications is one of the latest trends that will contribute to the growth of the agar-agar gum market in the forthcoming years. Agar-agar gum manufacturers are investing heavily in R&D activities for the development of new products. They are finding new ways to distinguish their brands by producing new products to increase their revenues.

The global agar market is segmented on the basis of application which includes: food & beverages, bacteriological applications, technical applications and others (agriculture). In 2015, of these segments, food & beverages segment dominated the market in terms of value and volume, and is expected to remain dominant over the forecast period. Food & beverages segment is further sub segmented as bakery, confectionery, dairy, canned meat/poultry products, beverages, sauces, creams & dressings, dietetic products and others. In addition bacteriological is further sub-segmented as culture media and microbiology. Technical application is sub-segmented as cosmetology and medical applications. The technical application segment is expected to expand at the highest CAGR in terms of value during the forecast period.

 

Few Indian major players are as under:

·         Marine Hydrocolloids

·         Leeman Laboratories

·         Osler Scientific Enterprises

·         Lakshmi Engineering Products

·         Saffron Life Science

 

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·         Properties

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·         Uses & Applications

 

Ø  Market Study and Assessment

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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