fruit juice concentrate plant

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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

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Page 1: Fruit Juice Concentrate Plant

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.

ProcessThe 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 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)

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Particulars Rs. LakhsLand development cost 4.00Building 60.00Infrastructure 15.00Plant and Machinery 75.00Other Assets 9.00Technical fees 4.50Preliminary Pre-operative expenses 8.36Margin Money 9.00Contingency 5.14Total 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

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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 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. The annual consumption of materials is as follows for proposed production capacity.

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

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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 squashIS : 3881 – 1966 : Tomato juice

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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) 2Ractracto meter 0.50% 1 40% - 85% 1Utilities :-Power : 235 KwWater : 2000 KiloliterSteam : 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 : 10,000.00Plant office Furniture : 15,000.00Plant & Machinery : 1,70,000.00Total : 3,45,000.00

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(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. 92,000.003. Citric Acid 0.012 ton 220/- per kg. 2,640.004. Salt 0.05 ton 5/- per kg 250.005. Pectin 1.003 ton 500/- per kg. 1,500.006. Colours 72 liters 500/- per lt. 18,000.007. Edible oil 0.36 ton 35/- per lt. 12,600.008. Sodium Benzoate 0.072 ton 250/- per lt. 18,000.009. KMS 0.036 250/- per lt. 9,000.0010. Essence 0.10 ton 500/- per lt. 50,000.0011. Fuel cost (Gas) 8,010.0012. Packing materials 20,000 pkt. Of 500 grams @ 4/-

per pkt80,0000.00

TOTAL 9,40,000.00

(b) Manpower :

Particulars Nos. Rate(P/M) Amount (P/M)i) Manager Cum Supervisor 1 5,000/- 60,000.00ii) 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

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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. No.

Categories Minimum manufacturing area (carpet area) in sq. Meter (flyproof)

Minimum storage area (carpet area) in sq. Meter

Optimum internal height of the manufacturing area

Annual production in metric tones not to exceed

Annual licence fees in (rupees)

1. Large scale 300 Sq.Mt. 300 Sq.Mt 14 Ft. No limit 15002. Small scale (A) 150 sq.mt 50 sq.mt. 14 ft. 250 Mt. 6003. 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. 2505. 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 :

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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.

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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.

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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 juiceFruit juice can be categorized as :

Tropical Citrus Fresh/ Cellular Temperate Re-constituted

Tropical fruit juice Pineapple Passion fruit Mango Guava Papaya Tomato

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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 juiceTemperate fruit juices includes : Apples Pears

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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 NectarsMost 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 :

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Product Installed Capacity

(MT)

1st & 2nd year Production

@ 70%

3rd year onward

Production @ 80%

Pineapple concentrate 525 367 420Orange Juice 245 172 196Pineapple Juice 390 273 312Sliced Pineapple 120 84 96Passion fruit 220 154 176Total 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 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 63.86Orange 571.67 28.58 653.33 32.67Passion fruit 513.33 23.10 586.67 26.40Total QuantitySugar required per MT finished 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 steam as well as for DG set

48.30 9.66 51.84 10.37

Total 4430.30 196.76 5059.84 224.20

Land requirement : 4 acres of land

Plant and Equipment

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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 recoveryConcentrate post-treatment Aseptic or non-aseptic

packaging

In the orange line following additional systems will be installedOil 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

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Sl. No.

Type On roll Salary/ wages per

month

Total rupees per

month

Annual 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 4.323. Engineers 3 10,000.00 30,000.00 3.64. Technical supervisor 4 6,000.00 24,000.00 2.885. Non-Technical

supervisor9 4,000.00 36,000.00

6. Clerical staff 2 3,500.00 7,000.00 0.847. Skilled worker 10 3,500.00 35,000.00 4.28. Semiskilled worker 30 3,000.00 90,000.00 10.89. 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 CostPreliminary expenses 2.60Land and Land Development 4.90Drains, Roads & Walls 19.60Civil Structural 49.30Main processing plant and equipment 697.60Auxiliaries 22.00Utilities 77.10Pollution control equipment 26.30Other assets 8.20Electrical 29.10Eng. & pre operative expenses 135.40Margin 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% 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.

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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. No.

Description 1st year

2nd year 3rd year

4th year 5th year

6th year

Installed capacity in MT

1500 1500 1500 1500 1500 1500

A. Production 1. Utilization % 70 80 80 80 80 802. Production 1050 1200 1200 1200 1200 1200B. Income from 1. Sales of finished

product545.41 623.32 623.32 623.32 623.32 623.32

2. Transport subsidy on finished product @ 90%

4.91 5.62 5.62 5.62 5.62 5.62

3. Transport subsidy on finished goods @ 50%

0.32 0.36 0.36 0.36 0.36 0.36

C. Manufacturing Expenses 1. Raw materials 131.98 150.83 150.83 150.83 150.83 150.832. Consumables 55.13 63.00 63.00 63.00 63.00 63.003. Fuel 9.66 10.37 10.37 10.37 10.37 10.374. Stores & spares 5.61 6.41 6.41 6.41 6.41 6.415. Power energy charges 14.03 15.59 15.59 15.59 15.59 15.596. Power demand

charge2.70 3.00 3.00 3.00 3.00 3.00

7. Labour & Supervisor 31.02 34.12 34.12 34.12 34.12 34.128. 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 Expenses1. Adm. Salaries 2.82 3.10 3.10 3.10 3.10 3102. Sales Adm. Cost 648 713 713 713 713 7.133. Miscellaneous

expenses incl. Phone, printing stationary, traveling

6.00 8.00 10.00 12.00 12.00 12.00

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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 Charges1. On term loan 99.45 87.02 74.59 62.16 49.73 37.292. 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 taxes nil 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 ChatarjeeAddress : 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

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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 scenarioSince 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.

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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.

ProcessSquashThe 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

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

Jam/ MarmaladeThe 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 SauceFully 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 Capacity

(TPA)

1st year Production @ 70%

2nd year onward Production @

80%Mix fruit Jam 70 49 56Orange Squash 50 35 40Orange Marmalade 50 35 40Tomato Sauce 10 7 8Total 180 126 144

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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 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 4.032 Orange 216.67 10.83 247.62 12.383. Tomato 17.50 0.32 20.00 0.364. Sugar per MT

finished product37.80 5.86 43.20 6.70

5. Citric acid, colours, preservatives, slat, chemicals, spices etc. @ Rs. 50/MT

0.19 0.22

6. Squash bottle (700 ml)

52500 Pcs 2.89 60000 Pcs. 3.30

7. Jam jars (500 gm) 14000 Pcs 6.30 16000 Pcs. 7.208. Sauce bottle (100

gm)7000 Pcs 0.42 8000 Pcs. 0.48

9. Label/Cap/Lid etc. - 0.18 - 0.2010 Cartons with

printing - 0.28 - 0.32

11 Fuel for generating steam as well as for DG

5.80 KL 1.16 6.22KL 1.24

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setTotal 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. 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 1.442. Technical

supervisor 2 5,000.00 10,000.00 1.2

3. Non technical supv. 2 3,000.00 6,000.00 0.724. Clerical staff 3 3,000.00 9,000.00 1.085. Skilled worker 3 3,500.00 10,500.00 1.266. Semiskilled worker 4 3,000.00 12,000.00 1.447. Unskilled worker 4 2,000.00 8,000.00 0.96

Total 20 67,500.00 8.1

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Estimated Project Cost (with out cost of procuring land)

(Rs. In Lakhs)

Description of Investment Total CostPreliminary expenses 0.62Land and Land Development 0.70Civil Structural 7.50Main Processing Plant Equipment 7.50Auxiliaries 0.68Utilities 5.30Pollution control 0.50Others 1.32Electrical 1.65Eng. & pre operative expenses 6.00Margin for working capital 4.23Total Capital Cost 36.00

Break –even PointBreak-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 ReturnOn 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.

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Projected Profitability Statement (Rupees in Lakhs)

Sl. No.

Description 1st year

2nd year 3rd year

4th year 5th year

6th year

Installed capacity in MT

180 180 180 180 180 180

A. Production 1. Utilization % 70 80 80 80 80 802. Production 126 144 144 144 144 144B. Income from 1. Sales of finished

product61.95 70.80 70.80 70.80 70.80 70.80

2. Transport subsidy on finished product @ 90%

0.59 0.67 0.67 0.67 0.67 0.67

3. Transport subsidy on finished 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 23.472. Consumables 10.25 11.72 11.72 11.72 11.72 11.723. Fuel 1.16 1.24 1.24 1.24 1.24 1.244. Stores & spares 0.46 0.53 0.53 0.53 0.53 0.535. Power energy charges 1.48 1.64 1.64 1.64 1.64 1.646. Power demand

charge0.34 0.38 0.38 0.38 0.38 0.38

7. Labour & Supervisor 4.62 5.08 5.08 5.08 5.08 5.088. 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 Expenses1. Adm. Salaries 0.72 0.79 0.79 0.79 0.79 0.792. Sales Adm. Cost 2.04 2.24 2.24 2.24 2.24 2.243. Miscellaneous

expenses 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. DepreciationBy 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

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H. Interest Charges1. On term loan 3.24 2.84 2.43 2.03 1.62 1.222. 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 NEIP

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