2165086 fruit juice concentrate plant

8/7/2019 2165086 Fruit Juice Concentrate Plant

1/25

FRUIT JUICE CONCENTRATE PLANT

Introduction

The changing food habits and increased export has boosted the demand sideof bottled fruit juice both in the domestic market, institutional market(hotels, hospitals, airlines and defence).There is a growing demand for orange, pineapple and apple juice both in thedomestic and international market. The demand of high aromatic passionfruit juice in the European and American market is also very encouraging.Mizoram has good existing production of passion fruit.

Process

The farm arrived fruit are first washed than sorted for inspection. From

inspection conveyor the fruit is passed on to fruit mill for crushing and thanto hydraulic press for juice extraction.Extracted juice is than filtered though press filter and again sent tocentrifuge for clarification.The clarified fruit juice is concentrated in evaporation plant.The concentrated juice is sterilized in plate heat exchanger by heating.The sterilized juice in the hot condition is aseptically packed in aseptic bags

by aseptic bags by aseptic filling packing machine.Plant capacity About 2500 kg per day fruit juice concentrate of orange

and passion fruit.Plant equipment- Infeed fruit conveyor, fruit washer, fruit mill, screw preheater, hydraulic press, pulper, press filter, sugar syrup preparation kettle,aerator, tubular/ plate sterilized/ pasteurizer, jacketed storage tank and fillingmachine.Land requirement About 400 m2 developed land will be requiredBuilding and civil work - About 1500 m2 floor space is sufficient forrunning the plant conveniently.Power requirement - Total connected load of about 300 KW will berequired.

Water requirement About 40 KL of fresh water will be required everyworking day.Employment - About 75 personsRaw material About 7-8 MT orange or passion fruit every day.Turn over Rs. 180.00 lakhs p.a.Estimated Project Cost (with out cost of procuring land)


2/25

Particulars Rs. Lakhs

Land development cost 4.00

Building 60.00

Infrastructure 15.00

Plant and Machinery 75.00Other Assets 9.00

Technical fees 4.50

Preliminary Pre-operative expenses 8.36

Margin Money 9.00

Contingency 5.14

Total Project Cost (approx) 190.00

FRUIT PROCESSING

PRODUCT & USES :

Preservation of fruit in one form or the other has been practiced in all part ofthe world from time immemorial. However the industry got real fillip around1930 in India. The processing industry has been of great help in overcomingregional and seasonal gluts and scarcities, and in stabilizing prices. Also,fruits and vegetables produced anywhere can now be made available all overthe world in or out of seasons.The main causative agents of spoilage of fruit and vegetables are bacteria,moulds, yeast all certain enzymes. The preservation technique aims at partial

or completed destruction of these agents. The causative agents may beinactivated to their growth and activities. The causative agents may beinactivated by freezing the food at low temperatures (-17 to 0120 0c.), or bycompletely destroyed by heating at high temperature (100 120 0c).

MARKET POTENTIALITY : -

At present 15 Micro unit are producing Jam, Jelly Pickles and marketedlocally. Most of the units are in home scale and without F.P.O. qualitystandard. The consumption of Jam, Jelly and Pickles are increasing due tourbanization of families.

The consumption of Jam & Jelly and pickles is around 5 kg. & 2.0 kg.Annually considering an average family size of 6 numbers in urbanhousehold area.

Fruit processing industries in NER is not fully organized most of the unitsare Home scale unit without FPO quality specification due to which theyhave to sale their product locally. By over coming these constrains, a few


3/25

good units in semi-urban area or in town area with infrastructure facilitiesfor processing fruit and few micro half processing fruits home scale unitsmay come-up as a sub-sectors to support to these units and to utilizeavailable resources during season times. This type of half process unit willcome with a minimum investment of Rs. 10,000/- to Rs. 20,000/- and theymay earn Rs. 1,500/- to Rs. 4,000/- depend on their value addition materials.

The demand from such product generate from three sector :Army & Defence.Hotel, Catering services and Airlines.Civilians.Besides, there is export potentialities. The export can be formulated byAPEDA (Agro Product Food Export Development Authority).

PRODUCTION TARGET :-Installed Capacity : 300 Kg. per day and 60 MT per year in single shift

Utilized Capacity : 66 MT per annumProduct Mix : 45:60:5Jam : 14.4 MTJelly : 16.2 MTSquash : 21.6 MTPickles : 1.8 MT

BASIS & PRESUMPTION :-Single shift of 8 hours per day200 days per year

Raw Materials : All required materials are indigenously available. Theannual consumption of materials is as follows for proposed productioncapacity.

Fruits & Vegetables : 31.5 tonesSugar : 4.6 tonesCitric Acid : 0.012 tones

Salt : 0.05 tonesPectin : 0.003 tonesColours : 72 litersEdible oil : 0.36 tonesSodium Benzonate : 0.072 tonesKMS : 0.036 tonesEssence : 0.14 tonesMasala powder : 0.27 tones


4/25

PROCESS OF MANUFACTURE : The fruits are washed peeled andsliced and send for production of Jam, Jellies, Squashes and Pickles.

Jam The fruit are placed in a slam jalleted shallow kettle and the stem isturned on the product generally cooked to a temperature of 65 )C to 0C to 780C as determined by the preserve thermometer. A small quantity of water isalso added before boiling the mixture to facilitate pulping. Requisite amountof pectin is added at this stage. The product together with an almost quantityof citric acid to a temperature of 2200C to 2220C determined by a preserversthermometer. The product is cooled before packing.

Jellies and Squashes : The washed and peeled traits are fed into hopper ofa juice extractor and the juice is filtered. The juice containing sufficient

pectin and the dry sugar are boiled in the stream- jacketed kettle until a

satisfactory Jelly is obtained. Necessary preservative are added towards theend of boiling process. The extracted and clean juice are sent into a stainlesssteel blending tank, where juice is mixed with sugar syrup and otheringredients like citric acid, essence of orange/ Lemon/ pineapple, water

preservative etc.

Pickles : The washed, peeled and sliced fruit are kept in 2 percent commonslat solution for 24 hours. Then the fruits are kept in a 4 percent commonslate solution for 24 hours. The process is repeated for another two days. Onthe fifth days the fruit are shows that the fruits are cured than they arewashed thoroughly in clean hot water. The products kept in vinegar of 5%acetic acid solution and spice is added to it. Apart from this procedure anumber of local producers are also available which may also be followed.

FEASIBLE LOCATION :-

The site should be surrounded by available raw materials as well as skilledmanpower.

SKILL REQUIRED : -

At least to 2 weeks training is required for necessary skill. This skill can beacquired through locally available institute or from Govt. AgriculturalDevelopment offices. The quality maintenance is very important and itshould be according to FPO norms of Food products Meter act.

QUALITY CONTROL & STANDARDS : The BIS specification isIS : 4936 1968 : Fruits squashIS : 3881 1966 : Tomato juice


5/25

PLANT AND MACHINERIES :

Plant Building : 300 Sq. Feet. : As per F.P.O norms prescribe ministry offood processing :-(i) Baby boiler 1(ii) Screw type juice extractor 1(iii) Jacketed Kettle of 50 liter capacity 2(iv) Tomato baby pulpier 1(v) Cooling tank 2(vi) Juice stores tank 2(vii)Juice store tank 1(viii) Stainless steel knives 20 Pcs.(ix) Pilfer proof cup sealing machine 1

(x) Platform weighting scale 1(xi) Water arrangement with filtration and filtrate 1

(1000 capacity tank)(xii) Stainless steel posts 5(xiii) Syrup Mudding tank 1(xiv) Gas Burner (Commercial) 2Ractracto meter 0.50% 1

40% - 85% 1Utilities :-

Power : 235 KwWater : 2000 Kiloliter Steam : 40 TonesCoal or Gas : 8 tones (120 cylinder per annum)

Capital Cost :-

Land Development : 30,000.00Shed of 300 sq.Ft@300/- sq.ft. : 90,000.00Preliminary & per operative : 30,000.00Installation : 10,000.00

Plant office Furniture : 15,000.00Plant & Machinery : 1,70,000.00Total : 3,45,000.00


6/25

(a) Consumption of Raw Materials :

Sl.

No.

Items Qty. Rate Total Cost

1. Fruit & Vegetables 31.5 ton 20/- per Kg. 6,30,000.002. Sugar 4.6 ton 20/- per kg. 92,000.00

3. Citric Acid 0.012 ton 220/- per kg. 2,640.00

4. Salt 0.05 ton 5/- per kg 250.00

5. Pectin 1.003 ton 500/- per kg. 1,500.00

6. Colours 72 liters 500/- per lt. 18,000.00

7. Edible oil 0.36 ton 35/- per lt. 12,600.00

8. Sodium Benzoate 0.072 ton 250/- per lt. 18,000.00

9. KMS 0.036 250/- per lt. 9,000.00

10. Essence 0.10 ton 500/- per lt. 50,000.00

11. Fuel cost (Gas) 8,010.00

12. Packing materials 20,000 pkt. Of 500 grams @ 4/-per pkt

80,0000.00

TOTAL 9,40,000.00

(b) Manpower :

Particulars Nos. Rate(P/M) Amount (P/M)

i) Manager Cum Supervisor 1 5,000/- 60,000.00

ii) Skill Worker 5 3,500/- 2,10,000.00iii) Semi Skill Worker 2 2,500/- 60,000.00iv) Helper 2 2,000/- 48,000.00v) Salesman Commission 8,000.00

Total 3,86,000.00

(c) Utilities :

i) LPG Gas Cylinder 7 250/- 2,52,000.00

(d) Overhead :

i) Printing & Stationary 1,000.00ii) Advertisement (Banner & Leaflet) 2,400.00iii) Internal travels 6,000.00iv) Power 6,000.00v) Insurance 2,400.00

Total 17,800.00

WORKING CAPITAL REQUIREMENT :-


7/25

(i) Raw materials & packing materials 2 months Rs.1,56,000.00(ii) Finished good 2 weeks Rs. 66,000.00(iii) Working Expenses 1 week Rs. 33,000.00(iv) Receivables 2 weeks Rs. 70,000.00

Total Rs 3,25,000.00

TOTAL INVESTMENT

(i) Fixed capital : Rs. 3,45,000.00(ii) Working Capital requirement : Rs. 3,25,000.00

Total Rs. 6,70,000.00

15. Net profit : Rs. 3.15 lakh p.a.16 Breakeven : 61.7%

ABSTRACT OF GUIDELINES FOR GRANTING LICNECE UNDER

THE E.P.O. (1995)

Abstract of guidelines regarding grant of fruit products order licence for themanufacture of products. It is informed that there are five categories oflicence under fruit products order-1955, depending upon the annual

production in metric tones. The details of the different categories are givenbelow :-

Sl.No.

Categories Minimummanufacturingarea (carpetarea) in sq.Meter(flyproof)

Minimumstoragearea(carpetarea) insq. Meter

Optimuminternalheight ofthemanufacturingarea

Annualproductionin metrictones not toexceed

Annuallicence feesin (rupees)

1. Large scale 300 Sq.Mt. 300 Sq.Mt 14 Ft. No limit 1500

2. Small scale (A) 150 sq.mt 50 sq.mt. 14 ft. 250 Mt. 600

3. Small scale (B) 100 sq.mt 100 sq.mt 14 ft. 100 Mt. 4004. Cottage scale 60 sq.mt. 60 sq.mt 10 ft. 50 Mt. 250

5. Home scale (B) 25 sq.mt. 25 sq.mt. 10 ft. 10 Mt. 100

Depending upon the anticipated annual production entrepreneur may select abuilding that satisfies the area and height requirements for the relevantcategory of the licence ensuring that building is :Of permanent structure with RCC, TIN SHEETS OR ASBESTOSROOFING


8/25

Well lighted and ventilated.Independent with independent approach from the main road. It shall have nodirect communication with residential portion.Located in a clean and hygienic place with surroundings clean and open freefrom open drains, garbage, cattle sheds etc.

Manufacturing premises shall be made fly proof by providing fine mesh onwindows, external door, ventilators and openings. Wall shall be plasteredand white washed. Walls inner surface shall be made impervious andmoisture poof upto 1.5 meter height by tiles, cement plastered or enamel

paint. Floors shall be cemented. Proper drainage facilities shall be provided.Exit doors (Fly proof frame) shall be provided with auto closing device andthe door shall open outwards.

The entrepreneur is also required to make provision for free flowing tapwater in the manufacturing area. Water shall be got analysed chemically and

bacteriologically for its for its profitability by a recognized laboratory, itshould be ensured that the water sample for analysis is drawn by arepresentative of the laboratory or local health inspector and mention to thisaffect is made in water analysis report.

Machinery and equipment required for manufacture of fruit productsintended to be licensed shall also be arranged.

After arranging a suitable building, the entrepreneur may send a sketch ofthe building showing the dimensions viz. length, breadth, and height of allthe rooms in meters furnishing the following information.The different types of fruit products proposed to manufacture with theiranticipated annual production level in metric tones.

The type of construction of the building and nature of surroundings.The source of water proposed to be used in the manufacture of fruit productswith water reports.

List of machineries and equipments :

Further action in the matter will be initiated after the receipt of aboveinformation. Licence shall not be granted unless the premises is ready in allrespects, inspected and approved.

MULTI FRUIT JUICE PRODUCT


9/25

Indian Scenario :

Since withdrawal of excise duty on fruit and vegetable products there has been significant rise in the growth rate of the industry. The sector hasregistered a production growth of 13% overall, exports have been increasingcontinuously and pur at US$ 250.5million.

The total investment approved so far exceeds Rs. 4309 crores (US$ 1.19billion), out of which foreign investment is Rs. 788 crores (US $ 218.8million).

Investment Potential in Fruit Processing :

The countrys share in the world trade of processed fruits is still less thanone percent. As such, abundant investment opportunities are there in theexpanding domestic market and export arena. An increasing acceptance of

new products with market development efforts is seen.

Changes in export-import policies and exchange rate adjustments havehelped improving the export potential.

There is a good international demand for certain fresh fruits as well as processed fruits products. Fresh fruits identified as having good exportpotential are : Mango, Banana, Lichee and exotics like Passion fruit, grownin this area.

Policies and Regulations :

Though no industrial license is required for setting up F & VP industries,setting-up 100% EOUs requires specific Govt. approvals.

This sector is regulated by the Fruit Products Order, 1955 (FPO), issuedunder the Essential Commodities Act. The Ministry of Food ProcessingIndustries administers this order. The order lays down product specificationsand quality control requirements on production-hygiene, relabeling andmarketing of processed fruit product.

All processing units are required to obtain a license under this order.Periodic inspection of units is also carried out. In addition, consignments offruit products intended for export are subject to pre-shipment inspectionunder the FPO. Many F&VP industries are eligible for automatic approval offoreign technology agreement and up to 51% foreign equity participation.These include : tomatoes, mushrooms, fruit, fruit-peel, fruit jellies,marmalades, fruit juices, etc.


10/25

Market

The present industry is fragmented by different operation sizes as follows :

Home Scale 44%

Cottage Scale 17% Small Scale 16%

Relabeller 14%

Large Scale 9%

It is very difficult to estimate the actual and potential market size of thisproduct category. However, there is a latent demand of around 10 croreslitters of natural fruit juice which is much more than current consumption/supply level of around 3 crores litters, both organized and unorganized

sectors taken together.

Further, the per capital consumption in India is estimated to around 25 mlagainst 45 litters in Germany, 42.5 litters in Switzerland and 39 litters inUSA. Market analysts expect a growth rate of 20% per annum and hence theindustry offers a significant opportunity.

Fresh and processed fruits have been identified as a thrust area for exporttoo. In view of the above, it appears that there is a good scope for the

proposed fruit processing industry in Manipur.

Category of fruit juice

Fruit juice can be categorized as :

Tropical

Citrus

Fresh/ Cellular

Temperate

Re-constituted

Tropical fruit juice

Pineapple

Passion fruit

Mango

Guava

Papaya

Tomato


11/25

The quality and flavour of the extracted juices depend on ripeness,processing and storage conditions. They are susceptible to degradationduring thermal processing and require capture and recovery of volatilesduring the evaporation stage, in order to maintain high quality.Citrus fruit juice

Orange

Lime

Lemon

Grapefruit

The quality and flavour of the extracted juices depend on ripeness,processing and storage conditions. Essential oil content of citrus fruit is

important in maintaining the typical flavour profile of the juice. However,excessive oil content can give objectionable off-flavours. The behaviourof each juice component must therefore be considered in developing thecorrect process parameters for a high quality product.

Fresh and Cellular Fruit Juice

The world fruit juice market has become much more competitive inrecent years and in most developed countries, there is a plentiful supplyof fruit juice concentrate. The market for reconstituted orange, apple and

pineapple juice in particular has become very competitive.

Major fruit processors therefore with to produce fruit juices, which are ofsuch a high quality that the product can be readily differentiated fromcheaper counterparts. To meet this demand, there is a growing trendtoward the production of not-from-concentrate (NFC) juices sincethese are perceived to be of better quality than reconstituted juices.

In the US, production of NFC orange juice has grown to 30% of the total

production within five years and, despite the high cost of transportation,this trend is being repeated in Europe. Similarly new opportunities arearising for NFC juice containing cells and fibre processed from widerange of freshly squeezed and cellular fruit juices.

Temperate fruit juice

Temperate fruit juices includes :

Apples


12/25

Pears

Grapes

Berries

Peaches

Plums Apricots

These temperate area fruit are processed using similar process equipment, but each has particular characteristics, which affect the exact method ofextraction and thermal treatment. Most of these fruits contain pectin, whichneeds to be removed in order to produce a clear and product.

Re-constituted Juices and Nectars

Most fruit juice has traditionally been distributed from the growing region asa concentrate to save on transportation costs. The concentrate is then dilutedwith water close to the point of sale, pasteurized, and re-packaged.

Nectars are obtained by the addition of water and sugar to fruit juice, fruitjuice concentrate, fruit puree or a mixture of these. Fruits suitable for nectarproduction includes :

Apricot

Peach

Pear Mango

Guava

Apple

Citrus juices

Process

The farm arrived fruit are first washed than sorted for inspection.

From inspection conveyor the fruit is passed on to fruit mill for

crushing and than to hydraulic press for juice extraction. Extracted juice is than filtered through press filter and again sent to

centrifuge for clarification.

The clarified fruit juice is concentrated in evaporation plant.

The concentrated juice is sterilized in plate heat exchanger by

heating.

The sterilized juice in the hot condition is aseptically packed in

aseptic bags by aseptic filling packing machine.


13/25

Proposed capacity

The proposed multi fruit juicing unit will have a finished productioncapacity of about 1,500 MT juice per annum as follows :

Product Installed

Capacity

(MT)

1st & 2nd year

Production

@ 70%

3rd year

onward

Production

@ 80%

Pineapple concentrate 525 367 420

Orange Juice 245 172 196

Pineapple Juice 390 273 312

Sliced Pineapple 120 84 96

Passion fruit 220 154 176

Total 1500 1050 1200

Raw Material

The raw material and other material requirement for manufacturingpineapple, orange and passion fruit juice for the projected production mixand quantity will be as follows :

Item RM

Quantity @

70% (1050

MT)

Annual value

of RM (Rs. In

Lakhs)

Quantity

(MT) 2nd

year

onwards

@ 80%(1200

MT)

Annual value

of RM (Rs.

In Lakhs)

Pineapple 3139.50 55.88 3588.00 63.86

Orange 571.67 28.58 653.33 32.67

Passion fruit 513.33 23.10 586.67 26.40

Total Quantity

Sugar required per MTfinished product

157.50 24.41 180.00 27.90

Preservatives & Additives@ Rs. 250/MT finished

product

- 2.63 - 3.00

Packing materials @ Rs.5000/-

- 52.50 - 60.00

Fuel for generating steamas well as for DG set

48.30 9.66 51.84 10.37

Total 4430.30 196.76 5059.84 224.20


14/25

Land requirement : 4 acres of land

Plant and Equipment

The main plant and equipment will be for following activities :

Fruit handling & Reception Inspection/ washing Juice extractionJuice processing Juice finishing Centrifugation

Homogenization Membrane filtration Pasteurization

De-aeration Concentration Essence recovery

Concentrate post-treatment Aseptic or non-asepticpackaging

In the orange line following additional systems will be installed

Oil removal system after Juice Extraction Section and Oil recovery as wellas Special Treatment of Orange/ Lime Juice facility after the

Homogenization section.

Building and civil work

About 3000 sq. m. industrial and other shed/building including asepticrooms and raw material refrigerated room.

Power requirement

Total connected load of about 250 KW will be required. Due to present shortsupply of power a DG set back up of 150 KVA is also envisaged.

Water requirement

About 75 KL of water will be required every working day.

Employment

93 persons of different category as per following table


15/25

Sl.

No.

Type On roll Salary/

wages per

month

Total

rupees per

month

Annua

l cost

Rs. In

Lakhs

1. Managerial (Senior) 2 18,000.00 36,000.00 4.322. Sr. Engineer 3 12,000.00 36,000.00 4.32

3. Engineers 3 10,000.00 30,000.00 3.6

4. Technical supervisor 4 6,000.00 24,000.00 2.88

5. Non-Technicalsupervisor

9 4,000.00 36,000.00

6. Clerical staff 2 3,500.00 7,000.00 0.84

7. Skilled worker 10 3,500.00 35,000.00 4.2

8. Semiskilled worker 30 3,000.00 90,000.00 10.8

9. Unskilled worker 30 2,000.00 60,000.00 7.2Total 345,000.00 42.48

Estimated Project Cost

(Rs. In Lakhs)

Description of Investment Total Cost

Preliminary expenses 2.60

Land and Land Development 4.90

Drains, Roads & Walls 19.60Civil Structural 49.30

Main processing plant and equipment 697.60

Auxiliaries 22.00

Utilities 77.10

Pollution control equipment 26.30

Other assets 8.20

Electrical 29.10

Eng. & pre operative expenses 135.40

Margin for working capital 32.90Total Capital cost 1105.00

Break-even Point

Break-even point of the project is determined in the 2nd year at 80% ofinstalled capacity. The break-even point of the projection is at 35% ofinstalled capacity in the 2nd year of operation when plant optimizes its

production at 1200 TPY.


16/25

Pay Back Period

The entire capital investment excluding margin for working capital will bepaid back within 5 years and 1 months of operation.

Internal Rate of Return

IRR is calculated by Yield Method and works out to be 24.80%. On anaverage 24.80% net of tax will be earned on the invested amount (less ofmargin for working capital) in each year for 10 years, after allowing for therepayment of the sum originally invested.

Projected Profitability Statement

Sl.

No.

Description 1st

year

2nd year 3rd

year

4th year 5th

year

6th year

Installed capacity inMT

1500 1500 1500 1500 1500 1500

A. Production

1. Utilization % 70 80 80 80 80 80

2. Production 1050 1200 1200 1200 1200 1200

B. Income from

1. Sales of finishedproduct

545.41 623.32 623.32 623.32 623.32 623.32

2. Transport subsidy onfinished product @90%

4.91 5.62 5.62 5.62 5.62 5.62

3. Transport subsidy onfinished goods @50%

0.32 0.36 0.36 0.36 0.36 0.36

C. Manufacturing Expenses

1. Raw materials 131.98 150.83 150.83 150.83 150.83 150.83

2. Consumables 55.13 63.00 63.00 63.00 63.00 63.00

3. Fuel 9.66 10.37 10.37 10.37 10.37 10.37

4. Stores & spares 5.61 6.41 6.41 6.41 6.41 6.41

5. Power energy charges 14.03 15.59 15.59 15.59 15.59 15.59

6. Power demandcharge

2.70 3.00 3.00 3.00 3.00 3.00

7. Labour & Supervisor 31.02 34.12 34.12 34.12 34.12 34.12

8. Miscellaneous 4.50 6.00 6.00 6.00 6.00 6.00Total C 254.63 289.33 289.33 289.33 289.33 289.33

D. Adm. & Sales Expenses

1. Adm. Salaries 2.82 3.10 3.10 3.10 3.10 310

2. Sales Adm. Cost 648 713 713 713 713 7.13

3. Miscellaneousexpenses incl. Phone,printing stationary,traveling

6.00 8.00 10.00 12.00 12.00 12.00


17/25

4. Sales expenses @ of Rs. 1000/- per MT.

10.50 12.00 12.00 12.00 12.00 12.00

Total D 25.80 30.23 32.23 34.23 34.23 34.23

E. Operating Profit

B-(C+D) 270.20 309.74 307.74 305.74 305.74 305.74

F. DepreciationBy S.L. Method 65.81 65.81 65.81 65.81 65.81 65.81

G. Profit after depreciation (E-F)

204.39 243.93 241.93 239.93 239.93 239.93

H. Interest Charges

1. On term loan 99.45 87.02 74.59 62.16 49.73 37.29

2. On bank borrowing 14.92 14.92 13.06 11.19 9.33 7.46

Total H 114.37 101.94 87.64 73.35 59.05 44.75

I. Profit before taxes(PBT) (G-H)

90.02 141.98 154.28 166.58 180.87 195.17

J. Provision for taxesnil as per NEIP

K. Profit after taxes(PAT) (I-J)

90.02 141.98 154.28 166.58 180.87 195.17

Supplier of equipment

SSP LimitedContact Person : Mr. Tapas Chatarjee

Address : 19 DLF Industrial Area, Phase-II, 13/4, Mathura Road,Faridabad, Haryana-121003 (INDIA)Phone : +(91)(129) 2275441/ 2277730Fax : +(91) (129) 25277441E-mail : [email protected]/s Albertson International, USAM/s Bardo Citrus Products, USAM/s In Industries Alimenticias, BrazilM/s Citrosuco Paulista, BrazilM/s Alfa Leval, Sweden/ India

ORANGE SQUASH, MIXED FRUIT JAM/ JELLY

AND TOMATO SAUSE PROJECT

Introduction

The consumption of the products like mixed fruits jam and orange jam/marmalade is gaining popularity day by day owing to the growing change in


18/25

the food habits and increased consumption of bread and other convenientsnack foods.As regards fruit squash, it finds wide consumption as fruit drink. India is, byand large, a tropical country where the habit of taking soft drinks is prettyhigh.

Among the established brands in the jam/ marmalade/ squash segment,Druk, Kissan, Dipys, Tims & Sil are the prominent names. Besides, thereare number of units in the small-scale sector scattered across the country

producing the said products.

The proposed products to be manufactured by the proposed unit have asteady demand spread all over India. The estimated present demand forJam/Squash/Syrup and Sauce/Puree/Ketchup in Eastern and N.E. India

are 5400 MT and 7798 MT respectively. Besides, there is demand from otherregions also. Thus, as such, there will be no problem for the proposed unit tomarket its products.

Investment scenario

Since withdrawal of excise duty on fruit and vegetable products there hasbeen significant rise in the growth of the industry. The sector has registereda production growth of 13% overall, exports have been increasingcontinuously and are put at US$ 250.5 million.

The total investment approved so far exceeds Rs. 4309 crores (US $ 1.19billion), out of which foreign investment is Rs. 788 crores (US $ 218.8million).

Investment Potential in Fruit Processing :

The countrys share in the world trade of processed fruits is still less thanone percent. As such, abundant investment opportunities are there in theexpanding domestic market and export arena. An increasing acceptance ofnew products with market development efforts is seen.

Changes in export-import policies and exchange rate adjustments havehelped improving the export potential. There is a good international demandfor certain fresh fruits as well as processed fruits products.


19/25

Policies and Regulations :

Though no industrial licence is required for setting up Fruit & VegetableProcessing (F& VP) industries, setting-up 10% EOUs requires specific Govt.approvals.

This sector is regulated by the Fruit Products Order, 1955 (FPO), issuedunder the Essential Commodities Act. The Ministry of Food ProcessingIndustries administers this order. The order lays down product specificationsand quality control requirements on production-hygiene, a labeling andmarketing of processed fruit product.All processing units are required to obtain a licence under this order.Periodic inspections of units are also carried out. In addition, consignmentsof fruit products intended for export are subject to pre-shipment inspection

under the FPO. Many F&VP industries are eligible for automatic approval offoreign technology agreement and up to 51% foreign equity participation.These include; tomatoes, mushrooms, fruit, nuts, fruit-peel, fruit jellies,marmalades, fruit juices, etc.

Promotional Agencies and Assistance :

The Ministry of Food Processing Industries provides, assistance to the sectorthrough several plan-schemes, viz : schemes for creating infrastructure,development of backward linkages, R&D and training etc. There are someother organizations like APEDA, SFAC and NHB, which help in arranginginputs, marketing, export etc.

Technology- The proposed manufacturing activity does not call for import oftechnology. However, CFTRI, Mysore may be contacted for technical know-how.

Process

Squash

The fruits (orange & others like passion/ peach/ berry) are carefully sorted/

selected according to quality. The fruits are then washed with sprayed waterto remove unwanted elements. After washing, the fruits are again inspected.The oranges are peeled. The peeled oranges are put to juice extractor forextraction of juice. Juice is collected in stainless steel tanks and fed intostrainer where suspended coarse materials are removed. The juice is thencentrifuged in stainless steel centrifuge. The juice is diluted to requiredconcentration to which sugar and citric acid are added. Necessary flavours,

permitted colour and preservative are also added to it to form squash which


20/25

is subsequently filled in glass bottles, sealed, labeled and packed in cartonsfor dispatch.

Jam/ Marmalade

The pulp produced after extraction of juice is boiled along with sugar andcitric acid at a controlled temperature. Upon boiling required permittedcolours, flavours and preservatives are added. It is then cooled to requiredtemperature and forms a jelly like consistency. The jam thus obtained isfilled in bottles, sealed, labeled and packed in cartons for dispatch.

Tomato Sauce

Fully ripe selected tomatoes are washed at first and then sliced. It is heatedand passed through pulper to produce pulp followed by sieving. The liquid

pulp is boiled/ cooked with various ingredients (ground spice, garlic, onionetc. as per formulation) followed by addition of sugar, salt, acetic acid/vinegar, chemicals etc. Sodium Benzoate is generally added before the

product is filled into washed bottles, sealed, labeled and packed in cartonsfor dispatch.

Proposed capacity

The unit will operate on two-shift basis per day for 250 days per annum. Theunit will have the flexibility to process nearly 500 Kgs. each of Orange andmix fruit per shift, depending on the availability. The profile is based on

processing of orange for 00 days, mixed fruits for 25 days and Tomato for 60days.

The production and product-mix at different capacity utilization per annumwill be as follows :

Item Installed

Capacity

(TPA)

1st year

Production

@ 70%

2nd year onward

Production @

80%

Mix fruit Jam 70 49 56Orange Squash 50 35 40

Orange Marmalade 50 35 40

Tomato Sauce 10 7 8

Total 180 126 144


21/25

Raw material

The major raw materials and consumables required for production of orangesquash, marmalade, mixed fruits squash/ jam and tomato sauce are matured/ripe orange.

Sugar citric acid, preservatives, colours, chemicals, salts, spices etc. are alsorequired for production of the said items. The products will be packed inglass bottles/jars and finally in cartons. All these fruits are available withinthe State, NER and other parts of the country and may be procured fromdifferent producing centers in different seasons. The average cost of fruitshas been taken considering the seasonal fluctuation in price. All otherconsumable items can easily be procured from the local dealers/ openmarket.The details of raw material requirement is given below :

Item RM

Quantity 1st

year @

70%

Annual

Value of

RM (Rs.

In

Lakhs)

Quantity

(MT) 2nd

year

onwards @

80%

Annual

value of

RM (Rs. In

Lakhs)

1 Mixed Fruit 196.00 3.53 224.00 4.03

2 Orange 216.67 10.83 247.62 12.38

3. Tomato 17.50 0.32 20.00 0.36

4. Sugar per MTfinished product 37.80 5.86 43.20 6.70

5. Citric acid,colours,

preservatives, slat,chemicals, spicesetc. @ Rs. 50/MT

0.19 0.22

6. Squash bottle (700ml)

52500 Pcs 2.89 60000 Pcs. 3.30

7. Jam jars (500 gm) 14000 Pcs 6.30 16000 Pcs. 7.20

8. Sauce bottle (100gm)

7000 Pcs 0.42 8000 Pcs. 0.48

9. Label/Cap/Lid etc. - 0.18 - 0.20

10 Cartons withprinting

- 0.28 - 0.32

11 Fuel for generating steamas well as for DG

5.80 KL 1.16 6.22KL 1.24


22/25

set

Total 1999973.76 31.95 228541.04 36.43

Land requirement : 400 sqm

Plant and Equipment

The main plant equipment will be : Pulper, fruit cutting knives, juicingmachine, rosing machine, stainless steel storage tank, blending tank, steam

jacketed stainless steel vessel, strainer, pasteurizer-cum cooler, bottlewasher, cap sealing machine, bottle filling machine, label gumming machineetc.Other support facilities require are : Water purifier, Mini boiler,laboratory/ testing equipment, weighing scale, electrical installation, smallfuel oil storage system, etc.

Building and civil work

About 200 sq. m industrial and other shed/ building including aseptic roomsand raw material refrigerated room.

Power requirement

Total connected load of about 30 KW will be required. Due to present shortsupply of power of DG set back up to 30 KVA is also envisaged.

Water requirementAbout 0 KL of water will be required every working day.

Employment

20 persons of different category as per following table

Sl.

No

Type On roll Salary/

wages p.m.

Total

rupees p.m.

Annual

value Rs.

In Lakhas

1. Managerial (Senior) 2 6,000.00 12,000.00 1.44

2. Technicalsupervisor

2 5,000.00 10,000.00 1.2

3. Non technical supv. 2 3,000.00 6,000.00 0.72

4. Clerical staff 3 3,000.00 9,000.00 1.08

5. Skilled worker 3 3,500.00 10,500.00 1.26

6. Semiskilled worker 4 3,000.00 12,000.00 1.44

7. Unskilled worker 4 2,000.00 8,000.00 0.96

Total 20 67,500.00 8.1


23/25

Estimated Project Cost (with out cost of procuring land)

(Rs. In Lakhs)

Description of Investment Total Cost

Preliminary expenses 0.62

Land and Land Development 0.70

Civil Structural 7.50

Main Processing Plant Equipment 7.50

Auxiliaries 0.68

Utilities 5.30

Pollution control 0.50

Others 1.32

Electrical 1.65Eng. & pre operative expenses 6.00

Margin for working capital 4.23

Total Capital Cost 36.00

Break even Point

Break-even Point of the project is determined in the 2nd year at 80% ofinstalled capacity. The break-even point of the projection is at 43% ofinstalled capacity in the 2nd year of operation when plant optimizes its

production at 144 TPY.

Pay Back Period

The entire capital investment excluding margin for working capital will bepaid back within 2 years and 11 months of operation. The pay back amountis computed from the adjusted cash flow.

Internal Rate of Return

On an average 43.30% net of tax will be earned on the invested amount (lessof margin for working capital) in each year for 0 years, after allowing for therepayment of the sum originally invested.

Projected Profitability Statement


24/25

(Rupees in Lakhs)

Sl.

No.

Description 1st

year

2nd year 3rd

year

4th year 5th

year

6th year

Installed capacity inMT

180 180 180 180 180 180

A. Production1. Utilization % 70 80 80 80 80 80

2. Production 126 144 144 144 144 144

B. Income from

1. Sales of finishedproduct

61.95 70.80 70.80 70.80 70.80 70.80

2. Transport subsidy onfinished product @90%

0.59 0.67 0.67 0.67 0.67 0.67

3. Transport subsidy onfinished goods @

50%

0.04 0.04 0.04 0.04 0.04 0.04

C. Manufacturing Expenses

1. Raw materials 20.54 23.47 23.47 23.47 23.47 23.47

2. Consumables 10.25 11.72 11.72 11.72 11.72 11.72

3. Fuel 1.16 1.24 1.24 1.24 1.24 1.24

4. Stores & spares 0.46 0.53 0.53 0.53 0.53 0.53

5. Power energy charges 1.48 1.64 1.64 1.64 1.64 1.64

6. Power demandcharge

0.34 0.38 0.38 0.38 0.38 0.38

7. Labour & Supervisor 4.62 5.08 5.08 5.08 5.08 5.08

8. Miscellaneous 4.50 6.00 6.00 6.00 6.00 6.00

Total C 43.35 50.06 50.06 50.06 50.06 50.06

D. Adm. & Sales Expenses

1. Adm. Salaries 0.72 0.79 0.79 0.79 0.79 0.79

2. Sales Adm. Cost 2.04 2.24 2.24 2.24 2.24 2.24

3. Miscellaneousexpenses incl. Phone,printing stationary,traveling

1.50 1.75 1.75 1.75 1.75 1.75

4. Sales expenses @ of Rs. 1000/- per MT.

0.63 0.72 0.72 0.72 0.72 0.72

Total D 4.89 5.51 5.51 5.51 5.51 5.51

E. Operating Profit

B-(C+D) 14.34 15.95 15.95 15.95 15.95 15.95

F. Depreciation

By S.L. Method 1.29 1.29 1.29 1.29 1.29 1.29

G. Profit after

depreciation (E-F)

13.05 14.66 14.66 14.66 14.66 14.66

H. Interest Charges

1. On term loan 3.24 2.84 2.43 2.03 1.62 1.22


25/25

2. On bank borrowing 1.79 1.79 1.57 1.34 1.12 0.90

Total H 5.03 4.63 4.00 3.37 2.74 2.11

I. Profit before taxes(PBT) (G-H)

90.02 141.98 154.28 166.58 180.87 195.17

J. Provision for taxes

nil as per NEIPK. Profit after taxes

(PAT) (I-J)8.02 10.03 10.66 11.29 11.92 12.55

Supplier of equipment

SSP LimitedMather & Platt (India) Ltd., MumbaiPasteur Engineering Co. Ltd., Kolkatta

Process Machinery and Equipment Pvt. Ltd., KolkattaBatliboi & Co. Ltd., KolkattaPEC Boilers (P) Ltd., Kolkatta

2165086 fruit juice concentrate plant

Documents