Start a Production Business of Xanthan Gum (Food and Oil Drilling Grade)

Introduction:

Xanthan gum is a polysaccharide that has a variety of industrial applications, including as a food additive. It works as a thickener and stabiliser to keep the ingredients from separating. It's made from simple sugars through a fermentation process, and it gets its name from the bacteria that makes it: Xanthomonas campestris.

Xanthan gum is a culinary additive found in a variety of goods, including ice cream and salad dressing. It gives some of your favourite foods a thicker, more uniform texture. Some people even store it in their homes so they can prepare gluten-free baked items. In food, xanthan gum is used as a binder, stabiliser, and emulsifier. It cannot be found in nature and must be created.

It's formed by fermenting a type of carbohydrate, such as glucose or sucrose, with bacteria, according to the USDA. Xanthan gum is a polysaccharide and a soluble fibre in particular. This means your body won't be able to digest it, which isn't necessarily a bad thing, but it could be a problem for some people with gastrointestinal problems.

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Uses of Xanthan Gum:

Medicine: Xanthan gum is used in medicine to thicken beverages for persons who have had strokes or other illnesses that make swallowing thin liquids difficult. It's found in saliva substitutes for persons who suffer from dry mouth.

Cosmetics: It's also used as an ingredient in lotions and liquid cosmetics by a lot of cosmetic businesses. It possesses skin-moisturizing properties, making it ideal for face-care products. This popular baking ingredient is used as a mud thickening agent in the oil drilling business. Xanthan gum is used to make aqueous gels in cosmetics. It's also utilised to improve droplet coalescence in oil-in-water emulsions.

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Laborites: Xanthan gum is being studied in the lab to see if it may be used to make hydrogels and scaffolds that assist three-dimensional tissue growth in tissue engineering.

Oil Industry: Xanthan gum is used extensively in the oil sector to thicken drilling mud. The solids cut by the drilling bit are carried to the surface by these fluids.

The rheology of xanthan gum is excellent at the "low end." When the drilling fluid is no longer circulated, the solids stay suspended in it. Horizontal drilling has become more popular as a result of its broad use and the necessity for good control of drilled solids. It was used to improve the viscosity of concrete poured underwater and avoid washout.

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Market Outlook:

The global xanthan gum market was valued at USD 897.15 million in 2020, rising to USD 963.61 million in 2021, with a compound annual growth rate (CAGR) of 7.74 percent from 2020 to 2026, reaching USD 1,403.74 million in 2026. The global xanthan gums market is being driven by the expansion of end-user industries.

Consumption of food and cosmetics is increasing as disposable income rises, resulting in increased demand for xanthan gums. The usage of xanthan gum-containing convenience foods has also expanded dramatically in recent years. In Asia Pacific, rising population and a growing economically active population are driving up demand for on-the-go foods. Increased government expenditure in healthcare is raising pharmaceutical sales all around the world, which is propelling the xanthan gums market forward.

The xanthan gum industry is also being driven by rising demand for gluten-free meals. The availability of guar gum as a substitute is one of the most significant constraints for the xanthan gum business. Another stumbling block for the xanthan gum business is that it is incompatible with persons who suffer from specific sensitivities. However, the health risks associated with its usage, such as intestinal enlargement and delayed sugar absorption, are limiting the demand. A key problem for the xanthan gum market is the availability of replacement goods such as guar gum and cassia gum.

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Key Players:-

1. Danisco

2. Cargill

3. Pfizer Inc

4. Jungbunzlauer

5. Archer Daniels Midland (ADM)

6. CP Kelco

7. Fufeng Group Company Ltd.

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Introduction

Project Introduction
Project Objective and Strategy
Concise History of the Product
Properties
BIS (Bureau of Indian Standards) Provision & Specification
Uses & Applications

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

Raw Material

List of Raw Materials
Properties of Raw Materials
Prescribed Quality of Raw Materials
List of Suppliers and Manufacturers

Personnel (Manpower) Requirements

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

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)

Manufacturing Process and Formulations

Detailed Process of Manufacture with Formulation
Packaging Required
Process Flow Sheet Diagram

Infrastructure and Utilities

Project Location
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Built Up Area
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Project at a Glance

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