Project report for cashew feni

Market Potential and Business Feasibility of Cashew Feni

• Demand for Cashew Feni in Domestic and International Markets: Cashew Feni enjoys strong demand in India, especially in Goa, where it’s a cultural favorite. Locals and tourists drink about 4 lakh liters yearly, pushing the domestic market to ₹100 crore. Internationally, it gains fans in the USA and Europe, with exports hitting ₹50 crore last year, up 10% from 2022. India produces over 7 lakh tonnes of cashews annually, so raw material is plenty. As more people try unique drinks, Feni’s market grows, especially among those who love natural spirits.
• Investment Costs, Expected Profit Margins, and ROI Analysis: Starting a small Feni unit costs around ₹20-30 lakh for equipment, licenses, and setup. You spend ₹50-60 per liter to make it, but sell at ₹150-200, giving a profit margin of 60-70%. If you produce 10,000 liters monthly, you earn ₹15-20 lakh in sales, with ₹9-12 lakh profit after costs. Return on Investment (ROI) hits 40-50% in 2-3 years, thanks to steady demand and low raw material prices.
• Marketing Strategies for Branding and Distribution: Build a strong brand with catchy names and local Goa vibes. Use social media and tourist events to spread the word—60% of buyers find Feni online. Sell through local shops, bars, and online apps, reaching 70% of India’s liquor market this way. Partner with hotels to boost sales.
• Challenges and Risk Factors in the Industry: Strict liquor laws slow growth—licenses take months. Weather affects cashew crops, cutting supply by 15% some years. Competition from cheap drinks and fake Feni hurts trust. Exports face high taxes, raising costs by 20%.

Cashew Feni Production Process and Setup

• Overview of Traditional and Modern Methods of Cashew Feni Production: Cashew Feni starts with cashew apples, and people make it in two ways. The traditional method crushes apples by hand or foot, ferments the juice in clay pots, and boils it in copper stills—Goa’s old style still makes 60% of Feni. Modern methods use machines to crush and ferment faster, producing 1,000 liters in days instead of weeks. Both give that strong Feni taste, but modern ways meet bigger demand—exports grew to ₹50 crore last year!
• Required Raw Materials, Fermentation, and Distillation Process: You need cashew apples—India grows 7 lakh tonnes yearly—plus water and yeast. First, you crush apples into juice, mix in yeast, and let it ferment for 3-5 days until it bubbles. Then, you heat it in a still to distill the liquid into Feni, hitting 40-45% alcohol. One tonne of apples makes about 250 liters of Feni, so raw stuff is key!
• Essential Equipment and Infrastructure Needed for Setting Up a Production Unit: You set up with crushers (₹50,000), fermenting tanks (₹1 lakh), and a distillation unit (₹2-3 lakh). Add a small shed—500 sq. ft. works—and power for machines. A basic unit costs ₹5-7 lakh and churns out 500 liters monthly, enough to start small.
• Compliance with Government Regulations and Licensing Requirements: You follow rules! India’s Food Safety Act and Excise Laws need a license—apply at state excise offices for ₹20,000-50,000. The Pradhan Mantri Kisan Sampada Yojana helps with funds, but you test Feni for quality to sell legally. Over 200 units comply yearly!

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