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FRUIT JUICE CONCENTRATE PLANT

Introduction

The changing food habits and increased export has boosted the demand side
of 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 the
domestic and international market. The demand of high aromatic passion
fruit 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 than
to hydraulic press for juice extraction.
Extracted juice is than filtered though 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 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 pre
heater, hydraulic press, pulper, press filter, sugar syrup preparation kettle,
aerator, tubular/ plate sterilized/ pasteurizer, jacketed storage tank and filling
machine.
Land requirement – About 400 m2 developed land will be required
Building and civil work - About 1500 m2 floor space is sufficient for
running the plant conveniently.
Power requirement - Total connected load of about 300 KW will be
required.
Water requirement – About 40 KL of fresh water will be required every
working day.
Employment - About 75 persons
Raw 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)
Particulars Rs. Lakhs
Land development cost 4.00
Building 60.00
Infrastructure 15.00
Plant and Machinery 75.00
Other 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 of
the world from time immemorial. However the industry got real fillip around
1930 in India. The processing industry has been of great help in overcoming
regional and seasonal gluts and scarcities, and in stabilizing prices. Also,
fruits and vegetables produced anywhere can now be made available all over
the 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 be
inactivated to their growth and activities. The causative agents may be
inactivated by freezing the food at low temperatures (-17 to 0120 0c.), or by
completely destroyed by heating at high temperature (100 – 120 0c).

MARKET POTENTIALITY : -
At present 15 Micro unit are producing Jam, Jelly Pickles and marketed
locally. Most of the units are in home scale and without F.P.O. quality
standard. The consumption of Jam, Jelly and Pickles are increasing due to
urbanization 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 urban
household area.

Fruit processing industries in NER is not fully organized most of the units
are Home scale unit without FPO quality specification due to which they
have to sale their product locally. By over coming these constrains, a few
good units in semi-urban area or in town area with infrastructure facilities
for processing fruit and few micro half processing fruits home scale units
may come-up as a sub-sectors to support to these units and to utilize
available resources during season times. This type of half process unit will
come with a minimum investment of Rs. 10,000/- to Rs. 20,000/- and they
may 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 by
APEDA (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 annum
Product Mix : 45:60:5
Jam : 14.4 MT
Jelly : 16.2 MT
Squash : 21.6 MT
Pickles : 1.8 MT

BASIS & PRESUMPTION :-


Single shift of 8 hours per day
200 days per year

Raw Materials : All required materials are indigenously available. The


annual consumption of materials is as follows for proposed production
capacity.
Fruits & Vegetables : 31.5 tones
Sugar : 4.6 tones
Citric Acid : 0.012 tones
Salt : 0.05 tones
Pectin : 0.003 tones
Colours : 72 liters
Edible oil : 0.36 tones
Sodium Benzonate : 0.072 tones
KMS : 0.036 tones
Essence : 0.14 tones
Masala powder : 0.27 tones
PROCESS OF MANUFACTURE : The fruits are washed peeled and
sliced and send for production of Jam, Jellies, Squashes and Pickles.

Jam – The fruit are placed in a slam jalleted shallow kettle and the stem is
turned on the product generally cooked to a temperature of 65 )C to 0C to 78
0C as determined by the preserve thermometer. A small quantity of water is
also added before boiling the mixture to facilitate pulping. Requisite amount
of pectin is added at this stage. The product together with an almost quantity
of citric acid to a temperature of 2200C to 2220C determined by a preserver’s
thermometer. The product is cooled before packing.

Jellies and Squashes : The washed and peeled traits are fed into hopper of
a 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 the
end of boiling process. The extracted and clean juice are sent into a stainless
steel blending tank, where juice is mixed with sugar syrup and other
ingredients like citric acid, essence of orange/ Lemon/ pineapple, water
preservative etc.

Pickles : The washed, peeled and sliced fruit are kept in 2 percent common
slat solution for 24 hours. Then the fruits are kept in a 4 percent common
slate solution for 24 hours. The process is repeated for another two days. On
the fifth days the fruit are shows that the fruits are cured than they are
washed 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 a
number 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 skilled
manpower.
SKILL REQUIRED : -
At least to 2 weeks training is required for necessary skill. This skill can be
acquired through locally available institute or from Govt. Agricultural
Development offices. The quality maintenance is very important and it
should be according to FPO norms of Food products Meter act.
QUALITY CONTROL & STANDARDS : The BIS specification is
IS : 4936 – 1968 : Fruits squash
IS : 3881 – 1966 : Tomato juice
PLANT AND MACHINERIES :

Plant Building : 300 Sq. Feet. : As per F.P.O norms prescribe ministry of
food 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) 2
Ractracto meter 0.50% 1
40% - 85% 1
Utilities :-
Power : 235 Kw
Water : 2000 Kiloliter
Steam : 40 Tones
Coal or Gas : 8 tones (120 cylinder per annum)
Capital Cost :-
Land Development : 30,000.00
Shed of 300 sq.Ft@300/- sq.ft. : 90,000.00
Preliminary & per operative : 30,000.00
Installation : 10,000.00
Plant office Furniture : 15,000.00
Plant & Machinery : 1,70,000.00
Total : 3,45,000.00
(a) Consumption of Raw Materials :

Sl. Items Qty. Rate Total Cost


No.
1. Fruit & Vegetables 31.5 ton 20/- per Kg. 6,30,000.00
2. 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/- 80,0000.00
per pkt
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/- 2,10,000.00
iii) Semi Skill Worker 2 2,500/- 60,000.00
iv) Helper 2 2,000/- 48,000.00
v) 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 1,000.00
ii) Advertisement (Banner & Leaflet) 2,400.00
iii) Internal travels 6,000.00
iv) Power 6,000.00
v) Insurance 2,400.00
Total 17,800.00

WORKING CAPITAL REQUIREMENT :-


(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 the
manufacture of products. It is informed that there are five categories of
licence under fruit products order-1955, depending upon the annual
production in metric tones. The details of the different categories are given
below :-

Sl. Categories Minimum Minimum Optimu Annual Annual


No. manufacturing storage m production licence fees
area (carpet area internal in metric in (rupees)
area) in sq. (carpet height of tones not to
Meter area) in the exceed
(flyproof) sq. Meter manufac
turing
area
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. 400
4. 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 a


building that satisfies the area and height requirements for the relevant
category of the licence ensuring that building is :
Of permanent structure with RCC, TIN SHEETS OR ASBESTOS
ROOFING
Well lighted and ventilated.
Independent with independent approach from the main road. It shall have no
direct communication with residential portion.
Located in a clean and hygienic place with surroundings clean and open free
from open drains, garbage, cattle sheds etc.

Manufacturing premises shall be made fly proof by providing fine mesh on


windows, external door, ventilators and openings. Wall shall be plastered
and white washed. Walls’ inner surface shall be made impervious and
moisture 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 and
the door shall open outwards.

The entrepreneur is also required to make provision for free flowing tap
water in the manufacturing area. Water shall be got analysed chemically and
bacteriologically for its for its profitability by a recognized laboratory, it
should be ensured that the water sample for analysis is drawn by a
representative of the laboratory or local health inspector and mention to this
affect is made in water analysis report.

Machinery and equipment required for manufacture of fruit products


intended to be licensed shall also be arranged.

After arranging a suitable building, the entrepreneur may send a sketch of


the building showing the dimensions viz. length, breadth, and height of all
the rooms in meters furnishing the following information.
The different types of fruit products proposed to manufacture with their
anticipated 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 products
with water reports.

List of machineries and equipments :


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

MULTI FRUIT JUICE PRODUCT


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 has
registered a production growth of 13% overall, exports have been increasing
continuously and pur at US$ 250.5million.

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

Investment Potential in Fruit Processing :


The country’s share in the world trade of processed fruits is still less than
one percent. As such, abundant investment opportunities are there in the
expanding 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 have


helped 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 export
potential are : Mango, Banana, Lichee and exotics like Passion fruit, grown
in 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), issued
under the Essential Commodities Act. The Ministry of Food Processing
Industries administers this order. The order lays down product specifications
and quality control requirements on production-hygiene, relabeling and
marketing 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 of
fruit products intended for export are subject to pre-shipment inspection
under the FPO. Many F&VP industries are eligible for automatic approval of
foreign technology agreement and up to 51% foreign equity participation.
These include : tomatoes, mushrooms, fruit, fruit-peel, fruit jellies,
marmalades, fruit juices, etc.
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 this
product category. However, there is a latent demand of around 10 crores
litters 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 ml


against 45 litters in Germany, 42.5 litters in Switzerland and 39 litters in
USA. Market analysts expect a growth rate of 20% per annum and hence the
industry offers a significant opportunity.

Fresh and processed fruits have been identified as a thrust area for export
too. 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
The quality and flavour of the extracted juices depend on ripeness,
processing and storage conditions. They are susceptible to degradation
during thermal processing and require capture and recovery of volatiles
during 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 behaviour
of each juice component must therefore be considered in developing the
correct process parameters for a high quality product.

Fresh and Cellular Fruit Juice

The world fruit juice market has become much more competitive in
recent years and in most developed countries, there is a plentiful supply
of 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 of
such a high quality that the product can be readily differentiated from
cheaper counterparts. To meet this demand, there is a growing trend
toward the production of “not-from-concentrate” (NFC) juices since
these 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 are
arising for NFC juice containing cells and fibre processed from wide
range of freshly squeezed and cellular fruit juices.

Temperate fruit juice


Temperate fruit juices includes :
• Apples
• 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 of
extraction and thermal treatment. Most of these fruits contain pectin, which
needs 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 as
a concentrate to save on transportation costs. The concentrate is then diluted
with water close to the point of sale, pasteurized, and re-packaged.

Nectars are obtained by the addition of water and sugar to fruit juice, fruit
juice concentrate, fruit puree or a mixture of these. Fruits suitable for nectar
production 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.
Proposed capacity
The proposed multi fruit juicing unit will have a finished production
capacity of about 1,500 MT juice per annum as follows :

Product Installed 1st & 2nd year 3rd year


Capacity Production onward
(MT) @ 70% 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 manufacturing
pineapple, orange and passion fruit juice for the projected production mix
and quantity will be as follows :
Item RM Annual value Quantity Annual value
Quantity @ of RM (Rs. In (MT) 2nd of RM (Rs.
70% (1050 Lakhs) year In Lakhs)
MT) onwards
@ 80%
(1200
MT)
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 MT 157.50 24.41 180.00 27.90
finished product
Preservatives & Additives - 2.63 - 3.00
@ Rs. 250/MT finished
product
Packing materials @ Rs. - 52.50 - 60.00
5000/-
Fuel for generating steam 48.30 9.66 51.84 10.37
as well as for DG set
Total 4430.30 196.76 5059.84 224.20
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 extraction
Juice processing Juice finishing Centrifugation
Homogenization Membrane filtration Pasteurization
De-aeration Concentration Essence recovery
Concentrate post-treatment Aseptic or non-aseptic
packaging

In the orange line following additional systems will be installed


Oil removal system after Juice Extraction Section and Oil recovery as well
as 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 aseptic
rooms and raw material refrigerated room.

Power requirement
Total connected load of about 250 KW will be required. Due to present short
supply 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
Sl. Type On roll Salary/ Total Annua
No. wages per rupees per l cost
month month Rs. In
Lakhs
1. Managerial (Senior) 2 18,000.00 36,000.00 4.32
2. 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-Technical 9 4,000.00 36,000.00
supervisor
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 7.2
Total 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 19.60
Civil 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 32.90
Total Capital cost 1105.00

Break-even Point
Break-even point of the project is determined in the 2nd year at 80% of
installed capacity. The break-even point of the projection is at 35% of
installed capacity in the 2nd year of operation when plant optimizes its
production at 1200 TPY.
Pay Back Period
The entire capital investment excluding margin for working capital will be
paid 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 an
average 24.80% net of tax will be earned on the invested amount (less of
margin for working capital) in each year for 10 years, after allowing for the
repayment of the sum originally invested.

Projected Profitability Statement


Sl. Description 1st 2nd year 3rd 4th year 5th 6th year
No. year year year
Installed capacity in 1500 1500 1500 1500 1500 1500
MT
A. Production
1. Utilization % 70 80 80 80 80 80
2. Production 1050 1200 1200 1200 1200 1200
B. Income from
1. Sales of finished 545.41 623.32 623.32 623.32 623.32 623.32
product
2. Transport subsidy on 4.91 5.62 5.62 5.62 5.62 5.62
finished product @
90%
3. Transport subsidy on 0.32 0.36 0.36 0.36 0.36 0.36
finished goods @
50%
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 demand 2.70 3.00 3.00 3.00 3.00 3.00
charge
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 6.00
Total 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. Miscellaneous 6.00 8.00 10.00 12.00 12.00 12.00
expenses incl. Phone,
printing stationary,
traveling
4. Sales expenses @ of 10.50 12.00 12.00 12.00 12.00 12.00
Rs. 1000/- per MT.
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. Depreciation
By S.L. Method 65.81 65.81 65.81 65.81 65.81 65.81
G. Profit after 204.39 243.93 241.93 239.93 239.93 239.93
depreciation (E-F)
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 90.02 141.98 154.28 166.58 180.87 195.17
(PBT) (G-H)
J. Provision for taxes
nil as per NEIP
K. Profit after taxes 90.02 141.98 154.28 166.58 180.87 195.17
(PAT) (I-J)

Supplier of equipment

SSP Limited
Contact Person : Mr. Tapas Chatarjee
Address : 19 DLF Industrial Area, Phase-II, 13/4, Mathura Road,
Faridabad, Haryana-121003 (INDIA)
Phone : +(91)(129) 2275441/ 2277730
Fax : +(91) (129) 25277441
E-mail : info@sspindia.com
M/s Albertson International, USA
M/s Bardo Citrus Products, USA
M/s In Industries Alimenticias, Brazil
M/s Citrosuco Paulista, Brazil
M/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
the food habits and increased consumption of bread and other convenient
snack foods.
As regards fruit squash, it finds wide consumption as fruit drink. India is, by
and large, a tropical country where the habit of taking soft drinks is pretty
high.

Among the established brands in the jam/ marmalade/ squash segment,


Druk, Kissan, Dipy’s, Tims & Sil are the prominent names. Besides, there
are 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 a


steady demand spread all over India. The estimated present demand for
‘Jam/Squash/Syrup’ and ‘Sauce/Puree/Ketchup’ in Eastern and N.E. India
are 5400 MT and 7798 MT respectively. Besides, there is demand from other
regions also. Thus, as such, there will be no problem for the proposed unit to
market its products.

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

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

Investment Potential in Fruit Processing :


The country’s share in the world trade of processed fruits is still less than
one percent. As such, abundant investment opportunities are there in the
expanding 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 have


helped improving the export potential. There is a good international demand
for certain fresh fruits as well as processed fruits products.
Policies and Regulations :

Though no industrial licence is required for setting up Fruit & Vegetable


Processing (F& VP) industries, setting-up 10% EOUs requires specific Govt.
approvals.

This sector is regulated by the Fruit Products Order, 1955 (FPO), issued
under the Essential Commodities Act. The Ministry of Food Processing
Industries administers this order. The order lays down product specifications
and quality control requirements on production-hygiene, a labeling and
marketing 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, consignments
of fruit products intended for export are subject to pre-shipment inspection
under the FPO. Many F&VP industries are eligible for automatic approval of
foreign 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 sector
through several plan-schemes, viz : schemes for creating infrastructure,
development of backward linkages, R&D and training etc. There are some
other organizations like APEDA, SFAC and NHB, which help in arranging
inputs, marketing, export etc.

Technology- The proposed manufacturing activity does not call for import of
technology. 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 water
to remove unwanted elements. After washing, the fruits are again inspected.
The oranges are peeled. The peeled oranges are put to juice extractor for
extraction of juice. Juice is collected in stainless steel tanks and fed into
strainer where suspended coarse materials are removed. The juice is then
centrifuged in stainless steel centrifuge. The juice is diluted to required
concentration to which sugar and citric acid are added. Necessary flavours,
permitted colour and preservative are also added to it to form squash which
is subsequently filled in glass bottles, sealed, labeled and packed in cartons
for dispatch.

Jam/ Marmalade
The pulp produced after extraction of juice is boiled along with sugar and
citric acid at a controlled temperature. Upon boiling required permitted
colours, flavours and preservatives are added. It is then cooled to required
temperature and forms a jelly like consistency. The jam thus obtained is
filled 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 heated
and passed through pulper to produce pulp followed by sieving. The liquid
pulp is boiled/ cooked with various ingredients (ground spice, garlic, onion
etc. 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 cartons
for dispatch.

Proposed capacity
The unit will operate on two-shift basis per day for 250 days per annum. The
unit will have the flexibility to process nearly 500 Kgs. each of Orange and
mix 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 60
days.

The production and product-mix at different capacity utilization per annum


will be as follows :

Item Installed 1st year 2nd year onward


Capacity Production Production @
(TPA) @ 70% 80%
Mix fruit Jam 70 49 56
Orange Squash 50 35 40
Orange Marmalade 50 35 40
Tomato Sauce 10 7 8
Total 180 126 144
Raw material
The major raw materials and consumables required for production of orange
squash, marmalade, mixed fruits squash/ jam and tomato sauce are matured/
ripe orange.

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

Item RM Annual Quantity Annual


Quantity 1st Value of (MT) 2nd value of
year @ RM (Rs. year RM (Rs. In
70% In onwards @ Lakhs)
Lakhs) 80%
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 MT 37.80 5.86 43.20 6.70
finished product
5. Citric acid, 0.19 0.22
colours,
preservatives, slat,
chemicals, spices
etc. @ Rs. 50/MT
6. Squash bottle (700 52500 Pcs 2.89 60000 Pcs. 3.30
ml)
7. Jam jars (500 gm) 14000 Pcs 6.30 16000 Pcs. 7.20
8. Sauce bottle (100 7000 Pcs 0.42 8000 Pcs. 0.48
gm)
9. Label/Cap/Lid etc. - 0.18 - 0.20
10 Cartons with - 0.28 - 0.32
printing
11 Fuel for 5.80 KL 1.16 6.22KL 1.24
generating steam
as well as for DG
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, juicing
machine, rosing machine, stainless steel storage tank, blending tank, steam
jacketed stainless steel vessel, strainer, pasteurizer-cum cooler, bottle
washer, cap sealing machine, bottle filling machine, label gumming machine
etc.
Other support facilities require are : Water purifier, Mini boiler,
laboratory/ testing equipment, weighing scale, electrical installation, small
fuel oil storage system, etc.

Building and civil work


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

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

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

Employment
20 persons of different category as per following table

Sl. Type On roll Salary/ Total Annual


No wages p.m. rupees p.m. value Rs.
In Lakhas
1. Managerial (Senior) 2 6,000.00 12,000.00 1.44
2. Technical 2 5,000.00 10,000.00 1.2
supervisor
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
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 1.65
Eng. & 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% of
installed capacity. The break-even point of the projection is at 43% of
installed 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 be
paid back within 2 years and 11 months of operation. The pay back amount
is 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 (less
of margin for working capital) in each year for 0 years, after allowing for the
repayment of the sum originally invested.

Projected Profitability Statement


(Rupees in Lakhs)
st
Sl. Description 1 2nd year 3rd 4th year 5th 6th year
No. year year year
Installed capacity in 180 180 180 180 180 180
MT
A. Production
1. Utilization % 70 80 80 80 80 80
2. Production 126 144 144 144 144 144
B. Income from
1. Sales of finished 61.95 70.80 70.80 70.80 70.80 70.80
product
2. Transport subsidy on 0.59 0.67 0.67 0.67 0.67 0.67
finished product @
90%
3. Transport subsidy on 0.04 0.04 0.04 0.04 0.04 0.04
finished goods @
50%
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 demand 0.34 0.38 0.38 0.38 0.38 0.38
charge
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. Miscellaneous 1.50 1.75 1.75 1.75 1.75 1.75
expenses incl. Phone,
printing stationary,
traveling
4. Sales expenses @ of 0.63 0.72 0.72 0.72 0.72 0.72
Rs. 1000/- per MT.
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 13.05 14.66 14.66 14.66 14.66 14.66
depreciation (E-F)
H. Interest Charges
1. On term loan 3.24 2.84 2.43 2.03 1.62 1.22
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 90.02 141.98 154.28 166.58 180.87 195.17
(PBT) (G-H)
J. Provision for taxes
nil as per NEIP
K. Profit after taxes 8.02 10.03 10.66 11.29 11.92 12.55
(PAT) (I-J)

Supplier of equipment

SSP Limited
Mather & Platt (India) Ltd., Mumbai
Pasteur Engineering Co. Ltd., Kolkatta
Process Machinery and Equipment Pvt. Ltd., Kolkatta
Batliboi & Co. Ltd., Kolkatta
PEC Boilers (P) Ltd., Kolkatta