Making Chilli Sauce Business Idea

Introduction

Chilli sauce is hot in taste and eaten either as raw or cooked for its hot flavor. Chilli or Pepper is used to make a variety of sauces and chilli pickles.  Africa is among producer of pepper, production of chill sauce add value to pepper. As investor, you can start small production at home or large production it depend on your level of capital.

Production Capacity

Take assumption the Rated Plant capacity is 500ltrs/day

Production Process

Chilli sauce is made following the steps outlined below:

Cut chillies roughly

Peel & chop garlic

Measure the capacity of your bottle with the jug & water

Add

chillies and garlic to the jug & enough vinegar to make the volume you need

Transfer these to a pan

Add 5 teaspoons of salt, and a teaspoon of sugar

Heat to boil

Blend this mixture until smooth

Re-heat in the pan & Pour into your bottle using the jug.

Raw Materials/Ingredients

Hot Paper, Salt, Mustard oil, Vinegar, Chillies and Garlic

 

Equipment

The Essential tools and equipments required for Chill Manufacturing includes: Food-blender, a sauce pan, graduated jug & clean bottles.

Raw Materials/Ingredients

Hot Paper, Salt, Mustard oil, Vinegar, Chillies and Garlic

 

Equipment

The Essential tools and equipments required for Chill Manufacturing includes: Food-blender, a sauce pan, graduated jug & clean bottles.

Market Analysis: 

Chilli may be sold locally in Super markets, Whole sale shops, Groceries and Hotels. It can also be exported.

Capital Investment in US$

Capital Investment Item	Units	Qty	@	Amount
Delivery Van	No.	1	6,000	6,000
Food Blender	No.	1	150	150
Sauce Pan	No.	2	100	200
Gas Cooker	No.	1	600	600
Jug	No.	1	5	5
Total Amount				6,955

NB. Delivery van not required for small production

Operating Costs in US$

Item	Units	@	Qty/ day	Prod. Cost/ day	Prod. Cost/ month	Prod. Cost/ Year
Direct Costs
Hot pepper	Kgs	1.3	500	650	16,900	202,800
Vinegar	Litrs	3	50	150	3,900	46,800
Garlic	Kgs	4.8	50	240	6,240	74,880
Packaging	Botls	0.4	500	200	5,200	62,400
Salt	Kgs	0.4	20	8	208	2,496
Sub total				1248	32,448	389,376

 

General Costs (Over heads)

Rent	600	7,200
Labour	1,000	12,000
Utilities (Power &Water)	300	3,600
Repair & Maintenance	500	6,000
Gas	500	6,000
Fuel	500	6,000
Depreciation (Asset write off) Expenses	562	6,739
Sub - total	3,962	47,539
Total Operating Costs	36,410	436,915

 

Project Product Costs & Price Estimate in US$

 

Item	Qty/day	Qty/yr	@	Pdn Cost/yr	UPx	T/rev
Chill Sauce	500	156,000	2.8	436,915	3	468,000

 

Profitability Analysis:

 

Profitability Item	Per day	Per Month	Per Year
Revenue	1,500	39,000	468,000
Less: Production & Operating Costs	1,248	36,410	436,915
Profit	540	10,495	125,941

NB:  

 Price is USD

Assuming 26 days per month as working days

The price of raw material change from time to time

Sources of Supply of Raw Materials

Raw materials will be supplied from Hot pepper growing areas of Tanzania or any place in your country.

Government Facilities and Incentives Available

The following incentives are available from Government in her bid to promote Agriculture and prosperity for all programs. These include: Capital/Input, Tax exemptions, Land, Basic infrastructure, Grants and long term Loans at relatively low interest rates and a liberalized market. Private Sector Foundation of Tanzania has support as well as nonprofit organizations.