detailed project report on - horticulture.ap.nic.inhorticulture.ap.nic.in/ripening chamber.pdf ·...

22
1 DETAILED PROJECT REPORT ON RIPENING CHAMBERS OFFICE ADDRESS :

Upload: trinhdung

Post on 22-May-2018

279 views

Category:

Documents


6 download

TRANSCRIPT

Page 1: DETAILED PROJECT REPORT ON - horticulture.ap.nic.inhorticulture.ap.nic.in/Ripening chamber.pdf · DETAILED PROJECT REPORT ON RIPENING CHAMBERS OFFICE ... Mango is the national fruit

1

DETAILED PROJECT REPORT ON

RIPENING CHAMBERS

OFFICE ADDRESS :

Page 2: DETAILED PROJECT REPORT ON - horticulture.ap.nic.inhorticulture.ap.nic.in/Ripening chamber.pdf · DETAILED PROJECT REPORT ON RIPENING CHAMBERS OFFICE ... Mango is the national fruit

2

Project At A Glance

Name of the Company

Constitution

Date of Incorporation

Office

Unit Location

Partners

Name Designation

Line of Activity Ripening Chambers

Services Ripening of mangoes and other fruits and vegetables.

End User Segment Horticulture Sector (Farmers, Horticulturists and traders in horticulture produce)

Project Cost Rs._________ lakhs

Means of Finance Own Contribution: Rs.________ lakhs

Bank Loan : Rs.________ lakhs

Proposed Credit Facilities The firm is presently seeking sanction of the following credit facilities.

Term Loan : Rs _________ Lakhs

Repayment of Term Loan ____ monthly installments with a moratorium period

of initial ___ months.

Average DSCR

Internal Rate of Return

Break Even Point

Cash Break Even point

Page 3: DETAILED PROJECT REPORT ON - horticulture.ap.nic.inhorticulture.ap.nic.in/Ripening chamber.pdf · DETAILED PROJECT REPORT ON RIPENING CHAMBERS OFFICE ... Mango is the national fruit

3

Cost of Project (Rs in Lakhs):

Sl No Item Cost (Rs in Lakhs)

(a) Land Cost

(b) Civil & Building (including land

development cost)

(c) Insulation

(d) Plant & Machinery

(e) Electrical & Generators

(f) Preliminary & Pre-Operative

Expenses

Total

Means of Finance:

Sl No Item Amount (Rs in Lakhs)

(a) Bank Term loan

(b) Promoter Share

(c) Unsecured loan

Total

Page 4: DETAILED PROJECT REPORT ON - horticulture.ap.nic.inhorticulture.ap.nic.in/Ripening chamber.pdf · DETAILED PROJECT REPORT ON RIPENING CHAMBERS OFFICE ... Mango is the national fruit

4

1. Introduction

The Government of India has been providing support for the holistic development of

horticulture through various schemes such as National Horticulture Mission (NHM),

Horticulture Mission for North East and Himalyan States (HMNEH), National Horticulture

Board (NHB) and Coconut Development Board (CDB).

2. Horticulture Scenario in India

Owing to great diversity in climatic condition prevailing in India, a variety of temperatures,

sub-tropical fruits, vegetables, spices and pulses are being cultivated. India is the second

largest producer of fruits and vegetables in the world with production of 81.3 million MT and

162.2 million MT respectively but its share in global export of fruits and vegetables is

around 1.4% only. Fruits, vegetables and marine products are highly perishable and

subject to considerable loss and wastage. It is estimated that about 25 to 30% of the

produce of these commodities are spoiled every year in India. This is mainly caused due to

lack of cold chain infrastructure which includes both storage and transportation facilities. .

In this context, in a tropical country like ours, the importance and usefulness of ripening

chambers and integrated pack houses needs no emphasis.

Ripening chambers play a vital role in extending the shelf life and period of marketing,

avoiding glut and post-harvest losses reducing transport bottlenecks during peak period of

production and maintenance of quality of produce. Hence, the development of ripening

chambers in the country has an important role in reducing the wastages of the perishable

commodities and providing remunerative prices to the growers and to make available farm

products to the consumers at competitive and affordable prices.

The cold chain industry in India is still at a budding stage and despite large production of

perishables, the cold chain potential still remain untapped due to high share of single

commodity cold storage, high initial investment (for refrigerator units and land), lack of

enabling infrastructure like power & roads, lack of awareness for handling perishable

produce and lapse of service either by the storage provider or the transporter is leading to

poor quality of produce.

Page 5: DETAILED PROJECT REPORT ON - horticulture.ap.nic.inhorticulture.ap.nic.in/Ripening chamber.pdf · DETAILED PROJECT REPORT ON RIPENING CHAMBERS OFFICE ... Mango is the national fruit

5

However, increasing urbanization and growth of organized retail, food servicing and food

processing sector are boosting the growth of cold chain industry in India. The trend is

shifting towards establishing multipurpose cold storages, ripening chambers, pack houses

and providing end to end services to control parameters throughout the value chain.

Mango is the national fruit of India, known as the 'King of Fruits'. It is one of the most

important and popular Asian fruits. The fruit is very popular with the masses due to its wide

range of adaptability, high nutritive value, and richness in variety, delicious taste and

excellent flavor. The fruit is consumed in both forms raw and ripe.

Mango is grown in India in tropical and subtropical regions from sea to an altitude of 1500

meters. It is grown almost in all states of India. However, it is mainly cultivated in, Andhra

Pradesh, Bihar, Gujarat, Karnataka, Kerala, Maharashtra, Orissa, Tamil Nadu, Uttar

Pradesh and West Bengal.

Andhra Pradesh Krishna, East and West Godavari, Vishakhapatnam,

Srikakulam, Chittoor, Adilabad, Khamman, Vijaynagaram

Chhattisgarh Raipur, Bastar

Gujarat Bhavnagar, Surat, Valsad, Junagarh, Mehsana, Khera

Haryana Karnal, Kurushetra

Jammu & Kashmir Jammu, Kathwa, Udhampur

Jharkhand Ranchi, Sindega, Gumla, Hazaribagh, Dumka, Sahibganj, Godda.

Karnataka Kolar, Bangalore, Tumkur, Kagu

Kerala Kannur, Palakkad, Trissur, Malappuram

Madhya Pradesh Rewa, Satna, Durg, Bilaspur, Bastar, Ramnandgaon, Rajgari, Jabalpur, Katni, Balagha

Maharashtra Ratnagiri, Sindhudurg, Raigarh

Orissa Sonepur, Bolangir, Gajapati, Koraput, Rayagada, Gunpur,

Malkanpuri, Dhenkanal, Ganjam, Puri

Punjab Gurdaspur, Hoshiarpur, Ropar

Tamil Nadu Dharmapuri, Vellore, Tiruvallur, Theni, Madurai

Uttaranchal Almora, Nainital, Dehradun, Bageshwar, UdhamSingh Nagar,

Haridwar

Uttar Pradesh Saharanpur, Bulandshahar, Lucknow, Faizabad, Varanasi

West Bengal Malda, Murshidabad, Nadia

Page 6: DETAILED PROJECT REPORT ON - horticulture.ap.nic.inhorticulture.ap.nic.in/Ripening chamber.pdf · DETAILED PROJECT REPORT ON RIPENING CHAMBERS OFFICE ... Mango is the national fruit

6

3. Horticulture Scenario in Andhra Pradesh

Andhra Pradesh produces about 23.32 m. MT of horticulture produce from an area of 1.9

m. ha, accounting for 9.70% of total horticulture production in the country.

Andhra Pradesh is the third leading fruit producing state in the country after Tamil- Nadu

and Maharashtra and its share accounts for 12.6% of the total production of fruits in the

country. The main fruits are Mango, Banana, Citrus, Papaya, Guava and Sapota.

Andhra Pradesh is the second largest producer of Mango in the country after Uttar

Pradesh. With a production of 3.36 m. MT tonnes from an area of 0.39 m. ha, Andhra

Pradesh produces about 22% of the mango in the country. The major mango producing

belts are Krishna, East & West Godavari, Khammam and Vijayanagaram. The commercial

mango varieties grown are Bangnapalli, Suvarnarekha, Neelum and Totapuri, of which

Bangnapalli is an early variety. The productivity of mango is 8.6 t/ha. A large number of

processing units have been set up in the Chittoor and Krishna belts, mainly processing for

totapuri variety for pulp and jelly, which is being exported both domestically and

internationally.

Production of mango is concentrated in all the districts in Andhra Pradesh. However, in

terms of ranking, Krishna district in Coastal region (4.96 lakh MT), Chittoor district in

Rayalseema region (3.91 lakh MT) stand first and second positions respectively. The

neighbouring Khammam districts from Telangana region (3.34 lakh MT) also contribute a

lot. Further, a number of mango processing units (pulp and jelly making) are located in

Chittoor and Krishna districts. With a view to harnessing the export potential of mangoes

produced in the State, AEZs for mango pulp in Chittoor district and AEZ for fresh mango in

__________ district have been set up in the State.

4. Postharvest Management

Proper postharvest management is the need of the hour in order to deliver a quality

product to the market, and ultimately to the consumer, to command buyer attention and to

give the grower or farmer a competitive edge.

Nearly, 20-25 per cent of fruits are wasted due to faulty postharvest practices during

harvesting packaging, storage, grading etc. This wastage can be reduced to some extent

through proper and scientific methods.

Postharvest management can be considered as second production operation to add

values to the products and the basic means for effective marketing. Post-harvest management

operations are quite diversified, consisting of collection, curing, pretreatment, grading,

packaging, pre-cooling, low temperature storage, pallet loading, transporting, and depending

upon various crops.

Page 7: DETAILED PROJECT REPORT ON - horticulture.ap.nic.inhorticulture.ap.nic.in/Ripening chamber.pdf · DETAILED PROJECT REPORT ON RIPENING CHAMBERS OFFICE ... Mango is the national fruit

7

4.1 Post-harvest operations of Mangoes

Improved post-harvest practices results in reduction in losses, improve overall quality,

extend shelf life and higher profits for growers and marketers.

Normally, Mangoes do not need any post-harvest treatment for marketing in local markets,

except simple washing with water to remove the latex and dust. On a commercial scale or for

export purpose, they are sometimes dipped in hot water, containing fungicide for the

control of diseases. However, hot water treatment (HWT) is an effective post-harvest

treatment for Mangoes. Dipping newly harvested fruits in hot water minimizes fruit fly damage,

anthracnose, and stem-end rot infections.

4.1.1. Curing, washing and cooling

Curing is necessary when fruits are to be stored for long periods to extend the shelf life.

The fruits are usually spread on the floor in the orchard’s yard, having the cushion of paddy

straw or simple straw for nearly 24 hrs and then washed to remove the dirt. Post-harvest

cooling rapidly removes field heat from freshly harvested fruits, which helps in stabilizing

the metabolic process. Post-harvest cooling can:

Suppress enzymatic degradation and respiratory activity (softening)

Slow or inhibit water loss (wilting)

Slow or inhibit the growth of decay-producing microorganisms(molds and bacteria)

Reduce production of ethylene (a ripening agent)

In addition to protecting quality, post-harvest cooling provides marketing flexibility by

making it possible to market at the optimum time. Few of the cooling methods are room cooling,

forced air-cooling and hydro cooling.

4.2.1 Grading

The fruits graded according to their size, weight, colour and maturity benefits both the producer

and consumer. It has been observed that bigger size fruits take 2-4 days more time in ripening

than smaller ones and hinder to achieve uniform ripening. Therefore, grading according to size

play an important role in packaging of the fruits. During grading, the immature, overripe,

damaged and diseased fruits should be discarded.

4.2.2 Advantages of Grading and standardization

i) Grading is beneficial to the farmers, traders as well as to the consumers, as it

provides common language to all.

ii) Grading of produce before sale enables farmers to get better price for their

produce.

iii) Grading assists producers and other intermediaries in preparing fresh produce

for market with appropriate labeling.

iv) Grading helps consumers to get standard quality produce at fair price.

Page 8: DETAILED PROJECT REPORT ON - horticulture.ap.nic.inhorticulture.ap.nic.in/Ripening chamber.pdf · DETAILED PROJECT REPORT ON RIPENING CHAMBERS OFFICE ... Mango is the national fruit

8

v) It facilitates consumer to compare the prices of different qualities of a produce

in the market.

vi) It assures quality of the produce and also reduces cost of marketing and

transportation.

vii) Produce of similar grade can be stored in bulk. viii) Market values are better

understood.

ix) Commodities can be bought and sold without inspection, through e-trading. x)

Grading provides an authentic and scientific basis in promoting and

managing marketing system.

xi) It serves as a realistic and common basis for market intelligence and reporting.

xii) It facilitates settlement of grading disputes between buyers and sellers.

4.2.3 Ripening

In India, 99% of the Mangoes are ripened by using Calcium Carbide, which is a toxic chemical

and extremely hazardous. It is the most economical way to ripen a mango, but a banned

chemical, and should not be used for ripening of fruits. Such fruits do not ripe uniformly and

quality of fruits remains inferior.

It would be better to treat the fruits with ethylene gas (100 ppm) in airtight room by exposing

them for 24 - 48 hrs under controlled conditions of temperature and humidity, for ripening

purpose. These treatments ripen the fruits uniformly with attractive colour.

4.2.4 Uniformity

The contents of each package must be uniform and contain only mangoes of the same origin,

variety, quality and size. The visible part of the contents of the package must be representative

of the entire.

4.2.5 Packaging

Mangoes must be packed in such a way as to protect the produce properly. The materials

used inside the package must be new1, clean, and of a quality such as to avoid causing any

external or internal damage to the produce. The use of materials, particularly of paper or

stamps bearing trade specifications is allowed, provided the printing or labeling has been

done with non-toxic ink or glue. Mangoes shall be packed in each container in compliance

with the Recommended International Code of Practice for Packaging and Transport of Fresh

Fruits and Vegetables (CAC/RCP 44-1995, Amd. 1-2004).

Page 9: DETAILED PROJECT REPORT ON - horticulture.ap.nic.inhorticulture.ap.nic.in/Ripening chamber.pdf · DETAILED PROJECT REPORT ON RIPENING CHAMBERS OFFICE ... Mango is the national fruit

9

4.2.6 Storage

Storage is essential for extending the consumption period of fruits, regulating their supply to

the market and for transportation to long distances. Storage of fruits is also important due to

reason that their production is seasonal, but demand remains for a longer period.

Storage at 10 to 13 °C (50 to 55 °F) with 85 to 90% RH, give a shelf life of 14 to 28 days for

mature green fruit, depending upon variety. Ripe fruits can be stored at 7 to 8 °C (44.6 to

46.4 °F). Mature green fruits can be stored at room temperature for about 4-10 days,

depending upon variety. When fruits are treated chemically and pre-cooled to 10-12 °C before

storing them at an appropriate temperature, their shelf life is enhanced. Central Institute for

Subtropical Horticulture, Lucknow has suggested to store Dashehari and Mallika at 12 °C,

Langra at 15 °C, Chousa at 10 °C to enhance the shelf life to 2 to 3 weeks. It is better if fruits

are precooled before keeping them at low temperature.

4.2.7 Transportation

Transportation is considered as backbone and lifeline of agricultural marketing. Surface, rail,

air and water are means of transporting of fruits.

4.2.8 Important Assembling markets in Andhra Pradesh

Vijayawada, Nuziveedu, Chittoor, Pakala, Tirupathi, Banarupalem, Palamaneru, Pottur and

Koduru.are the important assembling markets in A.P.

5. Calcium Carbide is not safe for ripening

Calcium Carbide is being used for ripening of fruits like banana, mango etc., which emits

harmful fumes and affects the health of the consumers. Calcium carbide is used in some

countries as source of acetylene gas, which is an artificial ripening agent. However, acetylene

is not nearly as effective for ripening as is ethylene, and acetylene is not a natural plant

hormone like ethylene. Calcium carbide may contain traces of arsenic and phosphorus, both

are highly toxic to humans and the use of this chemical for ripening is illegal in most countries.

The usage of Calcium carbide is banned in our country also.

6. Ethylene is Generally Recognized As Safe (GRAS)

Ethylene is a natural plant hormone. It effects growth, development, ripening and senescence

(biological aging) of plants. It is normally produced in small quantities by most fruits and

vegetables. Many fruits produce larger quantities of ethylene and respond with uniform

ripening when exposed to an external source of ethylene.

Page 10: DETAILED PROJECT REPORT ON - horticulture.ap.nic.inhorticulture.ap.nic.in/Ripening chamber.pdf · DETAILED PROJECT REPORT ON RIPENING CHAMBERS OFFICE ... Mango is the national fruit

10

When used in accordance with good manufacturing practice, USFDA recognized ethylene as

safe (GRAS).

Ethylene has been found not harmful or toxic to humans when used in the recommended

concentrations in ripening rooms. In fact, ethylene was used medically as an anesthetic in

concentration significantly greater than that found in ripening room. However, ethylene is

often targeted as the reason for difficulty in breathing in ripening rooms.

6.1 Ripening of Fruits

High humidity forced ripening chambers are normally used for fruit ripening. These specially

built gas tight rooms have systems for controlling temperature, humidity and concentration of

Ethylene and CO2 levels. The chambers have a 5 day cycle period.

Ripening of fruits is possible through two methods. (1) by using portable ethylene generators

and (2) by using fully automated centralized ripening system with ethylene gas cylinder.

Pressurized ethylene gas is released at very slow rate by using a double stage gas regulator

and solenoid valves into the ripening chambers loaded with fruits until the desired

concentration is achieved and maintained.

6.2 System required for ethylene gas supply

1. CO2 Analyzer

2. Ethylene analyzer with concentration controller

3. Doping ethylene gas cylinder

4. Double stage gas regulator

5. Gas control system with fully automated concentration controller with solenoid valves

and dispensing pipeline.

6.3 Ripening Process

Crates with fruits are stacked about 7 to 8 crates height in the ripening chambers and the

doors and vents are closed. Ethylene gas is released and the concentration is maintained at

about 150 to 200 ppm, depending upon the fruit type, inside the chambers for 24 to 36 hours.

After 24 hours, the doors and vents will be opened for venting out the ethylene and CO2.

Page 11: DETAILED PROJECT REPORT ON - horticulture.ap.nic.inhorticulture.ap.nic.in/Ripening chamber.pdf · DETAILED PROJECT REPORT ON RIPENING CHAMBERS OFFICE ... Mango is the national fruit

11

6.4 Desired Storage Environment of Fruits and Vegetables in the cold chambers

Commodity Temperature (oC) Relative Humidity (%)

Apple -1 - 3 90 - 98

Apricots -0.5 - 0 90 - 95

Avocado 7 - 13 85 - 90

Asparagus 0 - 2 95 - 97

Beans, green 4 - 7 90 - 95

Beet root 0 - 2 95 - 97

Broccoli 0 - 2 90 - 95

Black berry -0.5 - 0 95 - 97

Cabbage 0 - 2 90 - 95

Carrots 0 - 2 90 - 95

Cauliflower 0 - 2 90 - 95

Cherries 0.5 - 0 90 - 95

Cucumber 7 - 10 90 - 95

Brinjal 0 - 2 90 - 95

Grapes -1 - 1 85 - 90

Lemons 4 - 15 86 - 88

Lettuce 0 - 1 95 - 98

Lime 3 - 10 85 - 90

Mango 11 - 18 85 - 90

Melon water 2 - 4 85 - 90

Orange 0 - 10 85 - 90

Peach -1 - 1 88 - 92

Potato 1.5 - 4 90 - 94

Page 12: DETAILED PROJECT REPORT ON - horticulture.ap.nic.inhorticulture.ap.nic.in/Ripening chamber.pdf · DETAILED PROJECT REPORT ON RIPENING CHAMBERS OFFICE ... Mango is the national fruit

12

7. Present Project

The proposed project “_________________________________________” envisages the

setting up a unit for ripening of fruits like mangos, bananas and other fruits and vegetables.

It is a partnership firm promoted by _____________________________ and other, who

hail from a family having hands on business experience in the procurement and marketing

of mangoes for almost ___ years and who have wide connections with farmers of this area.

The firm is constituted with the main object to ripen and preserve various horticultural

fruits like mangos and bananas etc. The capacity of the Ripening Unit is ____ MT.

The important post-harvest operations of fruits are curing, washing, grading, packaging,

storage, transportation, processing and marketing etc. The promoters intend to use

contemporary technology for ripening of fruits and vegetables using hygienic and natural

processes.

7.1 Location Advantage

______________ district being the largest producer of mangoes in Andhra Pradesh is

ideal location for the unit. The unit is easily accessible from sources of raw fruits and

markets for the ripened fruits.

The proposed unit is at a distance of ____ km from _____________ city. This will not only

reduce the transportation delay, but also reduce the cost of transportation. The present

location has got the direct transport facilities to Hyderabad and Amaravathi, the proposed

capital city of the new Andhra Pradesh state.

Area of operation is about ______ km radius, surrounding the unit viz

__________________________________________ etc around _________ Mandals in

__________ District, Ulavapadu in Prakasam District, Sattupalli in Khammam Disctrict. The

project is ideally situated near to Mango and other fruits and Vegetable cultivating areas.

The project is ideally situated in the area very near to Mango and other Fruit & Vegetable

Markets.

The proposed area is well known for commercial crops like Vegetables, and fruits like

Mango, Guava, Banana and other fruits. The integrated pack house and ripening facilities

in the proposed area will facilitate the economic development of farmers and help in

regularize marketing system.

Page 13: DETAILED PROJECT REPORT ON - horticulture.ap.nic.inhorticulture.ap.nic.in/Ripening chamber.pdf · DETAILED PROJECT REPORT ON RIPENING CHAMBERS OFFICE ... Mango is the national fruit

13

The traditional way of ripening the fruits is outdated considering the deterioration, damage

like color changing and loss of weight. Due to the technological development in the area of

ripening and storage facilities, it is available to the common man.

The setting up of a research center on mango near _ _ _ _ _ _ _ _ in the district is

expected to give a boost to mango production.

Considering all the above facts and considerations, the proposed unit will have advantage

and can easily be managed successfully.

7.2 Marketing

Mango is the major fruit crop in _____________ district. It covers an area of ______ ha,

which is mainly concentrated in _____________. Various other fruits like banana, sapota,

guava, papaya and pomegranate and vegetables are being exported to other districts and

states in India. Fruits like mango, Sapota and vegetables like cabbage, tomato, green

peas can fetch good market throughout the year by storing them under controlled

temperatures. It is therefore felt that a tremendous requirement for controlled temperature

storage facility for different commodities thought the year can only be met by construction of

the ripening chambers.

_______________ is a famous commercial centre in __________ district. There are no

sufficient ripening and storage facilities in the nearby areas in the district. There is lot of

scope for installation of pack houses and ripening units in this area. To fill this gap and tap the

market potential, the promoters have established the proposed unit; thereby they can cater

needs of small farmers at reasonable rates.

7.3 The Promoters

The unit is being is promoted by the persons who a r e having good relations with

other Traders and Farmers in the district and it is well connected to rest of the Andhra

Pradesh and Telangana state. The promoters of the firm have been involved in fruit

business, due to which the promoters are having good contacts with the farming community

in the district.

7.4 Incentives

The unit is eligible for the following incentives from the central and state governments.

1. Capital subsidiary of 35 % from National Horticulture Mission for ripening chambers.

2. Concession on power tariff @ Rs.1.00/- per unit of Electricity Consumption for the

First 5 Years from the State Government.

Page 14: DETAILED PROJECT REPORT ON - horticulture.ap.nic.inhorticulture.ap.nic.in/Ripening chamber.pdf · DETAILED PROJECT REPORT ON RIPENING CHAMBERS OFFICE ... Mango is the national fruit

14

7.5 Backward Linkage with farmers with reference to either providing services or

purchase of raw material:

The area where the unit is located has lot of farmers who are growing mangoes and other

horticulture crops and vegetables. The promoters have excellent contacts and tie-ups with

mango, banana and sweet orange farmers and traders. They plan to store the apples and

dates as well in the ripening chambers during off season. Moreover, number of other

farmers are willing to provide their raw materials for ripening and storage.

7.6 Forward Linkages- Analysis of domestic and export markets, tie up made for sale

of Produce and branding aspect:

Being in the fruit trading business for 15 years, the promoters have established excellent

contacts and relations with the traders and retailers of horticulture commodities like fruits

and vegetables. They will provide transportation support and marketing support to the

farmers who use their infrastructure facilities and the ripening chambers. They also invite

the corporate retailers to purchase the material. They have export tie ups with Rajasthan,

Delhi, Haryana and Maharashtra states.

7.7 SWOT Analysis

Strength:

Unit enjoys sufficient location advantages.

Unit is situated in an area which is a predominantly horticulture based belt

especially mango, banana and other fruits and vegetables.

The promoters have been in the fruit trading business for a long time and maintains

good rapport with the horticulture farmers and traders.

Weakness:

Un-expected or un-timely rains or cyclones would affect the crop production which

in turn effects the capacity utilization

Inefficient supply chain due to a large number of intermediaries

Seasonality of raw material

Perishability of the fruits and vegetables

Page 15: DETAILED PROJECT REPORT ON - horticulture.ap.nic.inhorticulture.ap.nic.in/Ripening chamber.pdf · DETAILED PROJECT REPORT ON RIPENING CHAMBERS OFFICE ... Mango is the national fruit

15

Opportunity:

Opening of global markets

The growing awareness and necessity to use carbide free ripened fruits.

Large crop and material base

Rising income levels and changing consumption patterns

Availability of capital subsidy from NHM

Threat:

Any change in the Government policies can severely impact the performance of the

industry as a whole.

Natural Calamity

7.8 Infrastructure

7.8.1 Power

The required power will be drawn from APSPDCL. To meet the demand during power cut

period and for continuous supply, the company has made alternative and stand by

arrangements with Diesel Generators.

7.8.2 Fuel

The unit requires Diesel Oil for operating the Generator in case of power failures. The

required Diesel Oil can be procured locally.

7.8.3 Water

The total water requirement for the plant can be drawn from a bore well.

Page 16: DETAILED PROJECT REPORT ON - horticulture.ap.nic.inhorticulture.ap.nic.in/Ripening chamber.pdf · DETAILED PROJECT REPORT ON RIPENING CHAMBERS OFFICE ... Mango is the national fruit

16

7.8.4 Effluents

Since it is a ripening unit, no harmful effluents will be generated in the process. Hence the

question of disposal of effluents does not arise.

7.8.5 Man Power

The unit requires 1 machine operators, 2 skilled workers and 3 unskilled workers and 2

helpers for operating the unit. One Manager cum Accountant, 1 Clerk cum typist , 1 office

Boy and 1 Watchmen are required for administration. This unit provides employment

opportunity to 12 members directly and about 50 unskilled labour for loading and

unloading and packing the fruits. The project does not require any labour for day to day

operations except for commodity handling. The loading and unloading charges will be

borne by the customers.

7.8.6 Land and Land Development

The promoters have taken the land and building on leas for 10 years to set up the project.

7.8.7 Buildings and Civil Works

The machinery will be housed in 10 ripening chambers and integrated pack house. The

building is an asbestos and GI roof shed which is constructed to meet the present

requirement. The promoters have received the required permissions for setting up the unit.

The project mainly requires construction of adequate buildings for the ripening chambers,

machinery and administrative buildings like office, toilets, water supply facilities, parking

facilities etc.

7.8.8 Plant & Machinery

The plant & machinery is required for the refrigeration of the ripening plant. The promoters

have already identified the established & reputed machinery suppliers.

Page 17: DETAILED PROJECT REPORT ON - horticulture.ap.nic.inhorticulture.ap.nic.in/Ripening chamber.pdf · DETAILED PROJECT REPORT ON RIPENING CHAMBERS OFFICE ... Mango is the national fruit

17

Profitability Projections

The basic assumptions for the calculations and the financial projections in the form of the

following statements are enclosed.

Projected Profitability Statement

Projected Balance Sheet Funds Flow Statement DSCR Statement

Conclusions:

The project is technically feasible and economically viable. The cash generation is sufficient

to meet the payment of interest and installments.

The financial parameters are satisfactory to the promoters and to the funding institutions.

The overall performance of the firm is satisfactory and deserves further investment and

results are expected to meet the financial obligations.

The project is technically feasible and economically viable and is a bankable project.

Page 18: DETAILED PROJECT REPORT ON - horticulture.ap.nic.inhorticulture.ap.nic.in/Ripening chamber.pdf · DETAILED PROJECT REPORT ON RIPENING CHAMBERS OFFICE ... Mango is the national fruit

18

Project Cost - Ripening Chambers

Sl

No

Bill / Item

Item

Description

Unit

Quantity

Unit Rate

(Rs)

Amount

VAT / CST

Total

Amount

CIVIL

1

Steel Items

2

3

4

5

6

7

8

9 Land Lease Advance

10 Concrete Flooring

11

Office & Toilets

12 Basement Filling with river sand

13 Truss & G I Sheet Roof

14

Gravel Approach Road

Page 19: DETAILED PROJECT REPORT ON - horticulture.ap.nic.inhorticulture.ap.nic.in/Ripening chamber.pdf · DETAILED PROJECT REPORT ON RIPENING CHAMBERS OFFICE ... Mango is the national fruit

19

Sl No

Bill / Item

Item Description

Unit

Quantity

Unit Rate

(Rs)

Amount

VAT / CST

Total Amount

Insulation

1 PUF Flooring

Sheet

2 PUF Flooring Sheet

3

PUF 60mm Wall &

Ceiling Panels

4

PUF 60mm Wall & Ceiling Panels

5

PUF 60mm Wall &

Ceiling Panels

6

PUF 60mm Wall &

Floor and Ceiling Panels & Accessories

7

PUF 60mm Floor Panels

8 Doors (Hinged

- 60 mm thick)

9

Doors (Sliding - 80 mm thick)

10 PUF Erection Charges

Page 20: DETAILED PROJECT REPORT ON - horticulture.ap.nic.inhorticulture.ap.nic.in/Ripening chamber.pdf · DETAILED PROJECT REPORT ON RIPENING CHAMBERS OFFICE ... Mango is the national fruit

20

Sl No

Bill / Item

Item Description

Unit

Quantity

Unit Rate (Rs)

Amount

VAT / CST

Total Amount

Machinery

1

Refrigeration System

2

Refrigeration System

3

Humidifiers, Copper Line, Cables and PVC Electrical Pipes

4

Refrigeration System

5

Ethylene Gas

System with Cylinders

6 Weigh Bridge (50 MT)

7 Fire Safety Equipment (Motor, Rain Guns, Pipe Line & Fire Extinguishers)

Page 21: DETAILED PROJECT REPORT ON - horticulture.ap.nic.inhorticulture.ap.nic.in/Ripening chamber.pdf · DETAILED PROJECT REPORT ON RIPENING CHAMBERS OFFICE ... Mango is the national fruit

21

Sl No

Bill / Item

Item Description

Unit

Quantity

Unit Rate

(Rs)

Amount

VAT / CST

Total Amount

Electrical

1

Panel Board, Main Switches, Bus Bar, Indicators and Push Buttons etc.

2

Copper Strip, Copper

Wire and Earth Pipes

3 Electrical Line & Transformer

4 Generator (125 KVA)

5 Labour Charges for

electrical work

Preliminary

& Pre- Operative Expenses

TOTAL

Page 22: DETAILED PROJECT REPORT ON - horticulture.ap.nic.inhorticulture.ap.nic.in/Ripening chamber.pdf · DETAILED PROJECT REPORT ON RIPENING CHAMBERS OFFICE ... Mango is the national fruit