94-amla_products.pdf
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PROJECT PROFILE
Project: Amla Products
Capacity: 6 MT/Annum
Project Cost: INR 2.52 lakhs
Exported oriented: Targeted at domestic markets
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Candidate industry Amla Products
Project description
Relevance of the industry in Karnataka
Possible locations
Manufacturing process
Quality related aspects
Project cost
Means of finance
Project feasibility
Indicative project financials
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Candidate industry Amla Products
Description Amla (Indian Gooseberry) is known for its medicinal values and is used in various
forms. Many ayurvedic and herbal preparations use amla as one of the
ingredients. With increasing awareness about being healthy and shift towards
ayurvedic and herbal medicines, amla products are being consumed in large
quantity. Amla is available only during season which lasts for about 4.5 to 5
months and therefore, the products made out of it, use preservatives for longer
shelf-life.
Relevance of the industry in
Karnataka
Karnataka is the fourth largest producer of gooseberry or amla in India. It is
grown in dry sub tropical climatic conditions. There is scope for improving area
under cultivation and productivity of amla in Karnataka. As it is a hardy tree, it can
be cultivated in dry and arid regions as well. Amla products are in high demand in
urban and rural markets. It is known as the poor man's apple and is recognised for
its medicinal values. Mainly cultivated in Mysore, Bijapur, Bagalkot, Belgaum.
Major districts suitable for
the industry
1. Mysore
2. Bijapur
3. Bagalkot
4. Belgaum
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Project Profile: Candidate industry Amla Products
Manufacturing Process
Many households in Karnataka have been preparing many of the
Amla products (except oil) since long. Fresh fully grown Amlas
are washed in warm water and then they are put in pressure
cooker for boiling. Boiling enables easy removal of seeds. After
removal of seeds, Amlas are cut into different shapes or sizes
depending upon the end products. Then they are sun-dried and
ingredients like salt, sugar, brahmi, cumin and preservatives are
homogeneously mixed and the products are packed.
Fully grown fresh Amla are washed
Cook / Boil in pressure cooker
Remove seeds
Cut to required size
Sun-dry and add ingredients
Pack and despatch
Quality and compliance
Compliance should be with:
1. Prevention of Food Adulterations Acts and Rules, 1954
2. Fruit Products Order, 1955
Process Flowchart
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Project Profile: Candidate industry Amla Products
Cost of the Project Amount (Rs in Lakhs)
Land and Building 0.00
Machinery 1.26
Miscellaneous Assets 0.56
Preliminary and preoperative expenses 0.56
Contingencies (10% of project cost) 0.14
Working capital 0.00
Total cost 2.52
Means of Finance Amount (Rs in Lakhs)
Promoters contribution 0.84
Term loan from bank 1.68
Debt equity ratio 2:01
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Project Profile: Candidate industry Amla Products
Assumptions
Sale price per Kg Rs 150 per Kg
Capacity of the unit 6 tonnes per annum
Projected Profitability Amount (Rs in Lakhs)
Revenue at 65% utilization 5.85
Cost of production including loan payment 4.60
Profit Before Tax 1.25
Income tax @ 20% 0.25
Profit After Tax 1.00
IRR calculation Year 1 Year 2 Year 3 Total
Cash Accruals (PAT) 1.00 1.19 1.40 3.59
Discount factor @ 19% 0.84 0.84 0.83 2.51
IRR = 19%
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Project Profile: Candidate industry Amla Products
Reference:
1. Ministry of Food Processing Industries, Government of India
2. Ministry of Micro, Small and Medium Enterprises , Government of India
3. National Bank for Agriculture and Rural Development
4. Central Food Technological Research Institute, Mysore
5. National Horticulture Board
Disclaimer: This presentation has been prepared for general guidance on matters of interest only. The reader should not act upon the information contained in this presentation without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this presentation, and, to the extent permitted by law, GoK, its consultants, its members, employees and agents accept no liability, and disclaim all responsibility, for the consequences of reader or anyone else acting, or refraining to act, in reliance on the information contained in this presentation or for any decision based on it.