94-amla_products.pdf

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Project Profile 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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    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.