aayan formated

8/11/2019 AAYAN Formated

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MARKET ANALYSIS

MARKET ANALYSIS SUMMARY:

One can sense an evolution that the industry has seen with development in the tetra- packmarket, there also has been a natural progression from drinks to nectars to juices and

while traditionally fruit drinks were aimed at children, the new brands like Onjus, Real,

and Life have focused on young adults and professionals

!lthough fruit drinks focus strongly on out of home consumption, the juices and nectars

have been concentrating on takeaways or in-home consumption with more choice coming

in, the tetra- pack market is likely to witness further segmentation

"ackaged fruit juices are getting recogni#ed as social drinks now, with dominant

consumption being observed in the company of family and friends "eople have started to

perceive fruit juices as anytime beverages, with consumption being spread more or less

evenly between the mid mornings, afternoons and evenings !nd generation now is as

much inclined to sipping fruit juices as colas, with teenagers driving the ma$imum trials

%f the findings of a usage and attitude study conducted by market research agency %ndica

Research across &'(( adults in )ec ! and )ec * households in +elhi and umbai are

anything to go by, then its not just champagnes and colas that ualify as social beverages

The results of the research can be briefly put as follows:

!mong packaged fruit beverages, the awareness to trial, ratio of "epsi.os /ropicana

juice brand has been rated the highest 0p to &12 of the respondents were aware of

/ropicana, while the brands trial stood at &&2, also, 32 of the respondents stocked

the brand at their homes Other parameters where /ropicana edged out competitors

included taste, health, purity and nutrition, according to the study, /ropicana was also

perceiver as reasonably priced

/he average %ndian may have a legendary weakness for mango, but when it comes to

preference of fruit-based juices4 his choices are in tune with international trends

/herefore it is orange juice that is the most preferred fruit juice flavour in %ndia,

followed by apple, sweet orange and mi$ed fruit


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/he findings indicate that most packaged juice drinking consumers travel abroad on

holidays

Other attributes of branded juice consumers include employment of domestic help,

ownership of assets and credit cards, and health consciousness with 3(2 respondents

going to aerobic classes or working out at gymnasiums

0nderstandably therefore, awareness and trial levels of packaged juices are higher

within the )ec ! category, than among )ec * consumers, the majority of whom rated

these as aspirational

!wareness levels are similar in both umbai and +elhi4 more trials are generated by

+elhities than their counterparts in umbai

/he consumers are starting to perceive fruit juices at home 5hile 662 of the

respondents consumed &- litre packs at home, 762 consumed '((ml packs

/he fruit beverage market has more acceptances in 8orthern and 5estern %ndia, which is

due to the climatic conditions prevailing there with relations to the rest of the country

MARKET SEMENTATI!N:

/here has been no general acceptance of the product forms in the fruit beverage market

/he consumer is basically concerned if it is a fruit juice or synthetically constituted

product "roduct segmentation, therefore, should be clearly delimited

0nder the fruit drinks the first segmentation is between real fruit "rin#s an"

synthetic "rin#s$

/he real fruit drinks are based on natural fruit pulp or juice

/he synthetic drinks are synthetic products with fruit or other flavors

*road taste preferences could be another way to define the market /he market is at

present also segmented on the basis of fruit pulp content 9or the purpose of

segmentation, on the basis of fruit pulp content$ 9or the purpose of segmentation, on

the basis of fruit pulp content, market can be segmented as:


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Fruit juicewith pulp content more than 3(2 *rands falling in this category

are Onjus, Real, /ropicana, etc

Fruit Nectar with pulp content between 7(2 to ;(2 Life and


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flavour combination that began in the new age, 62 to &(2 juice category, and has spread

to other beverage categories as well as to other products like kiwi, strawberry, etc stating

that it was a small company that took the risk and won

)maller companies lead the way, as they are more willing to try e$otic flavours eventhough the larger companies have a larger staff and budget, and can afford to search out

the trends /he large companies tend to introduce prototypes that are pretty well-tested

/hey are always interested in the ne$t flavour trend, but usually are not the first to debut

it

9ortified drinks are also gaining market ie the juice is processed and an additional

nutritious trait is added to enhance its wholesome value eg with additional calcium,

vitamin . etc

One can notice the population in the country mainly in the cities becoming more and

more aware with regard to the nutritional aspect of life /his knowledge, coupled with the

consumers desire for a healthier lifestyle, has greatly impacted the evolution of juice and

juice-based drinks over the last few years


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IN)USTRY ANALYSIS:

/he Rs &(( crore packaged fruit juice market is estimated to be growing at '(2 to '62

annually, with /ropicana and Real holding 7(2 market share each

/he market can be categori#ed in terms of product content and there are three major

product contents available

)rin#s: =uice with pulp content less than 7(2,

Nectars: =uice with pulp content between 7( - 3(2,

*uices: =uice with pulp content more than 3(2,

/he canned juice market initially covered brands like 8!9@+, 8oga, idland, Aold.oin and +ruk /hese were fruit juices and nectars and not drinks *ut they did not make

a mark in the market due to reasons such as high price, unattractive packaging and lack of

right promotion programme

"arle !gros 9rooti, a mango drink, was introduced in the tetra pack in &B36 and since

then has been a leader in its segment /he market has suddenly picked up since &BB7-B6

and a few players have emerged as market leaders

LEA)IN MANU+A,TURERS !+ +RUIT -E.ERAES IN IN)IA:

,o'pany -ran" +la/ours

& "arle !gro 9rooti ango, Auava, "ineapple,

)trawberry C Orange

!ppy !pple

' "epsi.o Ltd /ropicana Orange, 8ature )weet, !pple,

Arape, "ineapple, /omato, i$ed

9ruit

)lice ango, Litchi, Orange C Auava

D +abur Real Arape, Auava, Orange, "ineapple,


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/omato, i$ed 9ruit, Litchi,

ango

Real !ctive Orange, !pple

7, Aodrej 9oods =umpin

Re


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'D /he aharashtra %nds

+evelopment .orp Ltd

8OA! "ineapple !gro

J/he above mentioned list consists of the brands noticeable in metros and as such there

are a large number of small canning units scattered all over the country catering to niche

marketsK

! host of brands are jostling for thirst space 8ot just colas but beverages and fruit juices

of all hues are adorning shop shelves 9rom bottled iced-tea to branded chhaas, fruit-

based drinks and flavoured milk, beverage makers have gone berserk with product

innovation as new variants continue to flood the market

9ruit drinks are high on the swig list in summers as it is part of the health fad sweeping

the nation Gealth conscious consumers are increasingly giving aerated drinks the go by

and making a beeline for fruit-based concoctions oreover, sporadic controversies about

pesticide-infested cola drinks are said to be driving consumers towards fruit-based drinks

as a safer alternative /hat is why even e$isting players are going all out to pour out new

flavours

)A-UR:

+abur 9oods that was set up in &BB1 has brands like Gommade, Lemonee# and .apsico

in its basket /he Rs D1 crore +abur 9oods ltd, a wholly owned subsidiary of +abur

%ndia ltd ahs two brands of juice in the market, they are4

Real

Real !ctive

9or its Realbrand, +abur is focusing on increasing in home consumption by targeting

mothers and children %t is priced in the range of Rs E( to E6 J& literK and Rs &6 J'((mlK

e$cept for Auava that is sold in the range to Rs E6 to 1( and Arape that is sold for Rs 1(

to 16 %ts ingredients are water, fruit concentrate, sugar, citric acid and flavours of4

Arape, Auava, Orange, "ineapple, tomato, i$ed 9ruit, Litchi and ango

/he Real Acti/ebrand is targeted towards fitness- cra#y young consumers /he drink is

positioned on the health plank %t was launched towards the end of '((' !t the same


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time, the company plans to position Real !ctive as its premium juice brand, while Real

would be targeted at consumers belonging to socio economic categories * and . also %t

contains only fruit concentrate and water %t is priced at Rs E3 and 1( %t is available in

the 9lavours of4

!pple and orange

/he company was eyeing a turnover of Rs E( crore in the year '((& -(', which is an

increase of nearly 6(2 !ccording to the company it ahs seen a growth of 772 in the

financial year '((&-(' as compared to D72 in '(((- (& /he company plans to increase

the advertising spends for the brand by nearly 7(2 /oday the advertising and marketing

budget for the brand by nearly Rs 3 .rore /he companys thrust is on increasing in-home

consumption therefore they are mainly targeting the mothers and children

Gowever, the company has restricted its activities in the urban areas only and wishes to

fully consolidate markets in the cities before looking at the small towns and rural areas

+abur 9oods claims to be the market leader in the pure juice category such as "unjab,

+elhi, Garyana, etc

0epsi,o:

/he "epsi operations in %ndia are now the part of the new !sian division of "epsi.o

*everages %nternational formed by the merger of "epsi.ola %nternational, /ropicana and

Aatorade, the sports beverage company acuired from uaker Oates @arlier, %ndia was

one of the eight business division of the beverage company that used to report to "epsi.o

%nternational in 8ew Mork directly 8ow it reports to "epsi.o *everage %nternational !sia

in Gong Hong "epsi.o *everage %nternational is a division of "epsi.o %nc /his move

has been prompted by the need to give greater regional focus to new products like

/ropicana and Aatorade so that they become a key element of the overall portfolio of the

0) beverage major

"epsi.o %nc is one of the worlds largest food and beverage companies /he companys

principle businesses include:

9rito N Lay snacks


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%ndia in the coming years /he /ropicana brand, per se, has been positioned on the

health platform

"epsi also plans to give its juice brand N which has seen many hurdles in the nascent and

niche juice market N a renewed thrust in the coming days ! price revision of the brandsis also on the anvil

)ince '((&, /ropicana roped in celebrities in the field of nutrition and health to sell its

brands 0nder which they got renowned people in the field of health to recommend their

clients to use their brand /he list of names included the likes of !njali ukherji, )abina

)ehgal )aikia and Fandana Luthra, who promote the brand, positioned as a health drink,

to their upwardly mobile clientele @ven celebrity doctors and pharmacists were included

in its list of marketers /ropicana is also sold through various health clubs like

/alwalkars, "ersonal "oint, etc in umbai and +elhi %n the past as a part of its

promotional activities, the company had conducted a /ropicana Gealth Run in the

capital, slated for 5orld Gealth +ay, which was on !pril 1, '((& /ropicana also runs a

programme called /he /ropicana .lub under which every time one buys a pack of

/ropicana he earns points which he can collect and e$change for a wide range of gifts

and also, as a member he gets uniue offers, e$citing gifts and interesting information on

keeping fit and looking good

/he company is seen to intensify its distribution network, with a greater thrust on large

institutions !part from retail and consumer N level promotions, /ropicana is being

promoted through health bulletins and health leaflets /he company intends to continue

with its unconventional retail thrust !part from the '(,((( to '6,((( outlets across &3

cities that /ropicana has a presence in, the brand is being placed across gymnasiums,

fitness centers in 6-star hotels, coffee shops, airlines, hospitals, offices and health stores

/hese points of consumption are not conseuential in providing high volumes, but

important from the imagery point of view /ypically, non-retail stores have been

contributing &' N &6 2 of the brands sales /ropicana evokes a high brand loyalty among

health N conscious middle and upper-middle class segments /he company is seeking to

project itself on the health platform and has an ad spend of around '(2 of its sales


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/he brands e$isting tagline of /aste of Aood Gealth has now got an e$tension

statement of +ont forget the juice, /ropicana &((2 pure fruit juice /ropicana is

packaged in a '(( ml slim pack Jwhich replaces its '6( ml packK and &-liter in a flat pack

tetra pack /he company is seen to run promotions in coordination with its other offering

like a scheme where &E gm pack of Lays agic asala that comes free with a '(( ml

pack of /ropicana 5orldwide, /ropicana has a host of juice brands under its belt *rands

like /wister, +ole, Loo#a, 9ruvita and =uice *owl, which could find their way into the

%ndian market in the coming years %t has decided to make changes in the composition of

its juices to suit the %ndian taste buds 9or instance, reali#ing that %ndians like a sweet

flavour, it decided to launch a separate sweet orange juice product specifically for the

%ndian market )ince it could not dilute its juice content, it decided to substitute part of it

with grape juice to make it sweeter @ven its launched tomato and mi$ed fruit juices have

been altered to suit the %ndian palate

.urrently, in terms of market share, /ropicana is believed to trail behind rival Real

+aburP but is not far behind and also has close to 7(2 market share of the estimated Rs

&(( crore branded juice market

"epsi sets the pace for backward integration of /ropicana, as a first step towards

backward integration for its pure juice business /ropicana is foraying into contact

farming of citrus fruits like oranges and Heanu "unjab- =allowal N has been chosen as the

location for the project /he D phase project involving trials, nursery and contract

farming, is being pursued jointly by "epsi and the "unjab !gro @$port .orporation

/hrough in its infancy at the moment, the project vision however is of about seven years

%f successful, it would mean &((2 locali#ation of orange juice and it becoming the

supply center to other regions

! present /ropicana has the following flavours:

Orange, 8ature )weet, !pple, Arape, "ineapple, /omato, i$ed 9ruit

Slice: "epsi.o in '((' poised to make deep inroads into juice drink segment in %ndia

with seven new variants of its )lice brand 9or the first time in companys history, a


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Litchi variant of )lice was introduced !part from that, a guava and Orange flavours

was also being offered !part from '(( ml slim line cartons priced at Rs &( each, )lice

juice drinks is subseuently made available in '6( ml returnable glass bottles as well

/he company invested significantly to bolster the )lice brand in the year '((' and plansto invest heavily through the year while )lice is now available in litchi, orange, mango

and Auava flavours, they are e$pected to be soon joined by )lice .ocktails

"epsi.o is sourcing litchis from u#affarpur, guavas from Harnataka and !llahabad, and

mangoes from Ratnagiri

Man&ola: angola, the other fruit-based beverage in the "epsi.os list, has a healthy

presence in aharashtra "epsi 9oods acuired angola, originally a brand of +ukes,

when it officially stepped into the domestic market while angolas distribution is

restricted to aharashtra4 )lice is available in all markets

"epsi, in association with foods and toiletries major Gindustan Lever, launched Lipton

%ced /ea in returnable glass bottles and "@/ bottles %t has also introduced irinda in

apple and strawberry flavours "epsi had earlier said they planned to reduce their

dependence on cola and bring it down to 7( per cent of total sales in the ne$t few years

"epsi came on aggressively with its QOye *ubblyQ campaign .oca .ola promised

consumers a date with !ishwarya Rai with its Q/handa !ish .ashQ promotion %t alsopromoted /hums0p through arch and !pril with its QGai +um?Q campaign featuring

*ollywood actor !kshay Humar

0arle A&ro:

"arle !gro "rivate Ltd is looking at product e$pansion in its various business segments to

sustain growth in a sluggish market %n the fruit drink segment where "arle !gro has a

hugely popular product ango 9rooti, it is planning to get into orange and pineapple

under the same brand of 9rooti 5hile orange pulp will be imported from *ra#il,

pineapple will be sourced from /hailand

!t the same time, it has also embarked on stretching the franchise of its e$isting brands>

9rooti, !ppy and *ailley ineral water %t knows the market and has sustained its brands

in spite of the huge unorgani#ed segment *esides, the company will use its e$isting


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eateries, super N markets, and paan-shops eanwhile, "arle !gro is planning to tap the

rural markets with its strongest brand 9rooti /here are plans to set up a separate

distribution in the product itself

%n keeping with market sentiments, cola biggies .oca .ola and "epsi, too, are focusingon innovation in their non-cola portfolio .oca .ola has launched aa#a in pineapple

and orange variants in &'6 ml tetra packs and large family packs %t recently started a new

facility in *areilly to cater to the growing demand for aa#a in north and central %ndia %t

is learnt that the company is also set to launch some QnicheQ products

"arle !gro has seen a trend towards fruit-based products "arle !gro spent Rs 6 crore Rs

6( millionP to relaunched its flagship mango drink, 9rooti, with modified packaging and a

new ad campaign %t launched a guava drink, 9rooti Auava, in umbai and other western

regions in E6ml packs priced at Rs '6( /he company is now out with !ppy 9i##, an

aerated apple drink in champagne-shaped "@/ bottles Launched in *angalore, it is being

rolled out in Holkata and .hennai in 6(( ml and D(( ml packs retailing at Rs '6 and Rs

&3, respectively /he E( million case fruit beverage market never had it so good Of the

Rs 1,(((-3,((( crore Rs 1(-3( billionP drinks market, fruit beverages account for Rs 6((

crore Rs 6 billionP, growing at '6- D( per cent annually Like most drinks, summer

accounts for E6 per cent of total sales

o"re1:

Aodrej 9oods Limited is into the business of manufacturing and selling processed foods

and trading of vegetable oil /he company has a number of leading cooking oil brands

like .ookLite, Aodrej and fruit juice brands like =umpin,


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=umpin brand is positioned as a fruit drink %t is available in the flavours of orange,

pineapple, apple and mango =umpin is available in '((ml and the price for all the

flavours are Rs &(

2s:


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/he changing food habits and increased e$port has boosted the demand side of bottled

fruit juice both in the domestic market, institutional market hotels, hospitals, airlines and

defenceP

/here is a growing demand for orange, pineapple and apple juice both in the domesticand international market /he demand of high aromatic passion fruit juice in the

@uropean and !merican market is also very encouraging

i#oram has good e$isting production of passion fruit

uice )torage /ank

9illing and "ackaging

.ooling and )torage

%n the following pages the process flowchart and brief description of the various

"rocesses involved in fruit juice production are outlined

Fruit Juice Production Process

9ruits boiler where it is cooked and shifted to the plate heat e$changer /hen stored in the

storage tank /hen supplied to the mi$ing tank in the desired uantity while in mi$ing

tanks4 any additives to the are made at this stage before it is pumped to syrup storagetanks *lended juice is then pumped through pasteuri#er4 where it is heated to B(o. to

inactivate en#ymes and living organism !fter pasteuri#ation the juice passes through

final filtration, before loading it into a juice storage tank =uice from the tank is ready for

packaging

Packing and labeling then storage.

/he juice will be then packed in the uantities demanded by the market .onsumer packs

as like '((ml and &(((ml tetra pack and then label the nestle juices "roduct will be incool dry store


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0rocess

/he farm arrived fruit are first washed than sorted for inspection 9rom inspection

conveyor the fruit is passed on to fruit mill for crushing and than to hydraulic press for

juice e$traction

@$tracted juice is than filtered though press filter and again sent to centrifuge for

clarification

/he clarified fruit juice is concentrated in evaporation plant

/he concentrated juice is sterili#ed in plate heat e$changer by heating

/he sterili#ed juice in the hot condition is aseptically packed in aseptic bags by aseptic

bags by aseptic filling packing machine

0lant capacity 5 !bout '6(( kg per day fruit juice concentrate of orange and passion

fruit

0lant e(uip'ent% %nfeed fruit conveyor, fruit washer, fruit mill, screw pre heater,

hydraulic press, pulper, press filter, sugar syrup preparation kettle, aerator, tubularS plate

sterili#edS pasteuri#er, jacketed storage tank and filling machine

Lan" re(uire'ent 5 !bout 7(( m' developed land will be reuired

-uil"in& an" ci/il wor# % !bout &6(( m' floor space is sufficient for running the plant

conveniently

0ower re(uire'ent % /otal connected load of about D(( H5 will be reuired

6ater re(uire'ent 5 !bout 7( HL of fresh water will be reuired every working day

E'ploy'ent % !bout 16 persons

Raw 'aterial 5!bout 1-3 / orange or passion fruit every day

Turn o/er 5Rs &3((( lakhs pa


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Esti'ate" 0ro1ect ,ost 3with out cost of procurin& lan"4

0articulars Rs$ La#hs

Land development cost 7((

*uilding E(((

%nfrastructure &6((

"lant and achinery 16((

Other !ssets B((

/echnical fees 76(

"reliminary "re-operative e$penses 3DE

argin oney B((

.ontingency 6&7

Total 0ro1ect ,ost 3appro74 89$

+RUIT 0R!,ESSIN

0R!)U,T ; USES:

"reservation of fruit in one form or the other has been practiced in all part of the world

from time immemorial Gowever the industry got real fillip around &BD( in %ndia /he

processing industry has been of great help in overcoming regional and seasonal gluts and

scarcities, and in stabili#ing prices !lso, fruits and vegetables produced anywhere can

now be made available all over the world in or out of seasons

/he main causative agents of spoilage of fruit and vegetables are bacteria, moulds, yeast

all certain en#ymes /he preservation techniue aims at partial or completed destruction

of these agents /he causative agents may be inactivated to their growth and activities

/he causative agents may be inactivated by free#ing the food at low temperatures -&1 to

(&'( (cP, or by completely destroyed by heating at high temperature &(( N &'( (cP


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MARKET 0!TENTIALITY

!t present &6 icro unit are producing =am, =elly "ickles and marketed locally ost of

the units are in home scale and without 9"O uality standard /he consumption of =am,

=elly and "ickles are increasing due to urbani#ation of families

/he consumption of =am C =elly and pickles is around 6 kg C '( kg !nnually

considering an average family si#e of E numbers in urban household area

9ruit processing industries in 8@R is not fully organi#ed most of the units are Gome

scale unit without 9"O uality specification due to which they have to sale their product

locally *y 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 utili#e

available resources during season times /his type of half process unit will come with a

minimum investment of Rs &(,(((S- to Rs '(,(((S- and they may earn Rs &,6((S- to

Rs 7,(((S- depend on their value addition materials

/he demand from such product generate from three sector :

!rmy C +efence

Gotel, .atering services and !irlines

.ivilians

*esides, there is e$port potentialities /he e$port can be formulated by !"@+! !gro

"roduct 9ood @$port +evelopment !uthorityP

0R!)U,TI!N TARET:%

%nstalled .apacity : D(( Hg per day and E( / per year in single shift

0tili#ed .apacity : EE / per annum

"roduct i$ : 76:E(:6

=am : &77 /

=elly : &E' /


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)uash : '&E /

"ickles : &3 /

-ASIS ; 0RESUM0TI!N :%

)ingle shift of 3 hours per day

'(( days per year

Raw Materials : !ll reuired materials are indigenously available /he annual

consumption of materials is as follows for proposed production capacity

9ruits C Fegetables : D&6 tones

)ugar : 7E tones

.itric !cid : ((&' tones

)alt : ((6 tones

"ectin : (((D tones

.olours : 1' liters

@dible oil : (DE tones

)odium *en#onate : ((1' tones

H) : ((DE tones

@ssence : (&7 tones

asala powder : ('1 tones

0R!,ESS !+ MANU+A,TURE : /he fruits are washed peeled and sliced and send

for production of =am, =ellies, )uashes and "ickles

*a' 5 /he fruit are placed in a slam jalleted shallow kettle and the stem is turned on the

product generally cooked to a temperature of E6 P. to (. to 13 (. as determined by the

preserve thermometer ! small uantity of water is also added before boiling the mi$ture

to facilitate pulping Reuisite amount of pectin is added at this stage /he product

together with an almost uantity of citric acid to a temperature of ''( (. to '''(.

determined by a preservers thermometer /he product is cooled before packing


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*ellies an" S(uashes : /he washed and peeled traits are fed into hopper of a juice

e$tractor and the juice is filtered /he juice containing sufficient pectin and the dry sugar

are boiled in the stream- jacketed kettle until a satisfactory =elly is obtained 8ecessary

preservative are added towards the end of boiling process /he e$tracted and clean juice

are sent into a stainless steel blending tank, where juice is mi$ed with sugar syrup and

other ingredients like citric acid, essence of orangeS LemonS pineapple, water preservative

etc

0ic#les : /he washed, peeled and sliced fruit are kept in ' percent common slat solution

for '7 hours /hen the fruits are kept in a 7 percent common slate solution for '7 hours

/he 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 /he products kept in

vinegar of 62 acetic acid solution and spice is added to it !part from this procedure a

number of local producers are also available which may also be followed

+EASI-LE L!,ATI!N :%

/he site should be surrounded by available raw materials as well as skilled manpower

SKILL RE


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,apital ,ost :%

Land +evelopment : D(,(((((

)hed of D(( s9tTD((S- sft : B(,(((((

"reliminary C per operative : D(,(((((

%nstallation : &(,(((((

"lant office 9urniture : &6,(((((

"lant C achinery : &,1(,(((((

Total : >?@?$

3a4 ,onsu'ption of Raw Materials :

Sl$ No$ Ite's


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0articulars Nos$ Rate30BM4 A'ount 30BM4

iP anager .um )upervisor & 6,(((S- E(,(((((

iiP )kill 5orker 6 D,6((S- ',&(,(((((

iiiP )emi )kill 5orker ' ',6((S- E(,(((((

ivP Gelper ' ',(((S- 73,(((((

vP )alesman .ommission 3,(((((

Total >?CD?$

3c4 Utilities :

iP L"A Aas .ylinder 1 '6(S- ',6',(((((

3"4 !/erhea" :

iP "rinting C )tationary &,(((((

iiP !dvertisement *anner C LeafletP ',7((((

iiiP %nternal travels E,(((((

ivP "ower E,(((((

vP %nsurance ',7((((

Total 8?C$

6!RKIN ,A0ITAL RE


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iP 9i$ed capital : Rs D,76,(((((

iiP 5orking .apital reuirement : Rs D,'6,(((((

Total Rs$ D??$

&6 8et profit : Rs D&6 lakh pa

&E *reakeven : E&12

A-STRA,T !+ UI)ELINES +!R RANTIN LI,NE,E UN)ER T=E E$0$!$

38994

!bstract of guidelines regarding grant of fruit products order licence for the manufacture

of products %t is informed that there are five categories of licence under fruit products

order-&B66, depending upon the annual production in metric tones /he details of thedifferent categories are given below :-


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Located in a clean and hygienic place with surroundings clean and open free from open

drains, garbage, cattle sheds etc

anufacturing premises shall be made fly proof by providing fine mesh on windows,

e$ternal door, ventilators and openings 5all shall be plastered and white washed 5allsinner surface shall be made impervious and moisture poof upto &6 meter height by tiles,

cement plastered or enamel paint 9loors shall be cemented "roper drainage facilities

shall be provided @$it doors 9ly proof frameP shall be provided with auto closing device

and the door shall open outwards

/he entrepreneur is also reuired to make provision for free flowing tap water in the

manufacturing area 5ater shall be got analysed chemically and bacteriologically for its

for its profitability by a recogni#ed 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

achinery and euipment reuired for manufacture of fruit products intended to be

licensed shall also be arranged

!fter arranging a suitable building, the entrepreneur may send a sketch of the building

showing the dimensions vi# length, breadth, and height of all the rooms in meters

furnishing the following information

/he different types of fruit products proposed to manufacture with their anticipated

annual production level in metric tones

/he type of construction of the building and nature of surroundings

/he source of water proposed to be used in the manufacture of fruit products with water

reports


29/51

List of 'achineries an" e(uip'ents :

9urther 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 +RUIT *UI,E 0R!)U,T

In"ian Scenario :

)ince withdrawal of e$cise duty on fruit and vegetable products there has been significant

rise in the growth rate of the industry /he sector has registered a production growth of

&D2 overall, e$ports have been increasing continuously and pur at 0)U '6(6million

/he total investment approved so far e$ceeds Rs 7D(B crores 0)U &&B billionP, out of

which foreign investment is Rs 133 crores 0) U '&33 millionP

In/est'ent 0otential in +ruit 0rocessin& :

/he countrys share in the world trade of processed fruits is still less than one percent !s

such, abundant investment opportunities are there in the e$panding domestic market and

e$port arena !n increasing acceptance of new products with market development efforts

is seen

.hanges in e$port-import policies and e$change rate adjustments have helped improving

the e$port potential

/here is a good international demand for certain fresh fruits as well as processed fruits

products 9resh fruits identified as having good e$port potential are : ango, *anana,

Lichee and e$otics like "assion fruit, grown in this area

0olicies an" Re&ulations :

/hough no industrial license is reuired for setting up 9 C F" industries, setting-up

&((2 @O0s reuires specific Aovt approvals

/his sector is regulated by the 9ruit "roducts Order, &B66 9"OP, issued under the

@ssential .ommodities !ct /he inistry of 9ood "rocessing %ndustries administers this


30/51

order /he order lays down product specifications and uality control reuirements on

production-hygiene, relabeling and marketing of processed fruit product

!ll processing units are reuired to obtain a license under this order "eriodic inspection

of units is also carried out %n addition, consignments of fruit products intended for e$portare subject to pre-shipment inspection under the 9"O any 9CF" industries are eligible

for automatic approval of foreign technology agreement and up to 6&2 foreign euity

participation /hese include : tomatoes, mushrooms, fruit, fruit-peel, fruit jellies,

marmalades, fruit juices, etc

Mar#et

/he present industry is fragmented by different operation si#es as follows :

Gome )cale 772

.ottage )cale &12

)mall )cale &E2

Relabeller &72

Large )cale B2

%t is very difficult to estimate the actual and potential market si#e of this product category

Gowever, there is a latent demand of around &( crores litters of natural fruit juice which

is much more than current consumptionS supply level of around D crores litters, both

organi#ed and unorgani#ed sectors taken together

9urther, the per capital consumption in %ndia is estimated to around '6 ml against 76

litters in Aermany, 7'6 litters in )wit#erland and DB litters in 0)! arket analysts

e$pect a growth rate of '(2 per annum and hence the industry offers a significantopportunity

9resh and processed fruits have been identified as a thrust area for e$port too %n view of

the above, it appears that there is a good scope for the proposed fruit processing industry

in anipur


31/51

,ate&ory of fruit 1uice

9ruit juice can be categori#ed as :

/ropical

.itrus

9reshS .ellular

/emperate

Re-constituted

/ropical fruit juice

"ineapple

"assion fruit

ango

Auava

"apaya

/omato

/he uality and flavour of the e$tracted juices depend on ripeness, processing and storage

conditions /hey are susceptible to degradation during thermal processing and reuire

capture and recovery of volatiles during the evaporation stage, in order to maintain high

uality

,itrus fruit 1uice

Orange

Lime


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Lemon

Arapefruit

/he uality and flavour of the e$tracted juices depend on ripeness, processing and storage

conditions @ssential oil content of citrus fruit is important in maintaining the typical

flavour profile of the juice Gowever, e$cessive oil content can give objectionable off-

flavours /he behaviour of each juice component must therefore be considered in

developing the correct process parameters for a high uality product

+resh an" ,ellular +ruit *uice

/he 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 /hemarket for reconstituted orange, apple and pineapple juice in particular has become very

competitive

ajor fruit processors therefore with to produce fruit juices, which are of such a high

uality that the product can be readily differentiated from cheaper counterparts /o meet

this demand, there is a growing trend toward the production of Vnot-from-concentrateW

89.P juices since these are perceived to be of better uality than reconstituted juices

%n the 0), production of 89. orange juice has grown to D(2 of the total production

within five years and, despite the high cost of transportation, this trend is being repeated

in @urope )imilarly new opportunities are arising for 89. juice containing cells and

fibre processed from wide range of freshly suee#ed and cellular fruit juices

Te'perate fruit 1uice

Te'perate fruit 1uices inclu"e:

!pples "ears

Arapes

*erries

"eaches


33/51

"lums

!pricots

/hese temperate area fruit are processed using similar process euipment, but each has

particular characteristics, which affect the e$act method of e$traction and thermal

treatment ost of these fruits contain pectin, which needs to be removed in order to

produce a clear and product

Re%constitute" *uices an" Nectars

ost fruit juice has traditionally been distributed from the growing region as a

concentrate to save on transportation costs /he concentrate is then diluted with waterclose to the point of sale, pasteuri#ed, and re-packaged

8ectars are obtained by the addition of water and sugar to fruit juice, fruit juice

concentrate, fruit puree or a mi$ture of these 9ruits suitable for nectar production

includes:

!pricot

"each

"ear

ango

Auava

!pple

.itrus juices

0rocess


34/51

/he farm arrived fruit are first washed than sorted for inspection 9rom inspection

conveyor the fruit is passed on to fruit mill for crushing and than to

hydraulic press for juice e$traction

@$tracted juice is than filtered through press filter and again sent to centrifuge for

clarification

/he clarified fruit juice is concentrated in evaporation plant

/he concentrated juice is sterili#ed in plate heat e$changer by heating

/he sterili#ed juice in the hot condition is aseptically packed in aseptic bags by

aseptic filling packing machine

0ropose" capacity

/he proposed multi fruit juicing unit will have a finished production capacity of about

&,6(( / juice per annum as follows :

0ro"uct Installe"

,apacity

3MT4

8st; Fn"year

0ro"uction

G H

>r"year onwar"

0ro"uction

G CH

"ineapple concentrate 6'6 DE1 7'(

Orange =uice '76 &1' &BE

"ineapple =uice DB( '1D D&'

)liced "ineapple &'( 37 BE

"assion fruit ''( &67 &1E

Total 8 8 8F

Raw Material


35/51

/he raw material and other material reuirement for manufacturing pineapple, orange and

passion fruit juice for the projected production mi$ and uantity will be as follows :

Ite' RM


36/51

9ruit handling C Reception %nspectionS washing =uice e$traction

=uice processing =uice finishing .entrifugation

Gomogeni#ation embrane filtration "asteuri#ation

+e-aeration .oncentration @ssence recovery

.oncentrate post-treatment !septic or non-aseptic packaging


37/51

In the oran&e line followin& a""itional syste's will be installe"

Oil removal system after =uice @$traction )ection and Oil recovery as well as )pecial

/reatment of OrangeS Lime =uice facility after the Gomogeni#ation section

-uil"in& an" ci/il wor#

!bout D((( s m industrial and other shedSbuilding including aseptic rooms and raw

material refrigerated room

0ower re(uire'ent

/otal connected load of about '6( H5 will be reuired +ue to present short supply of

power a +A set back up of &6( HF! is also envisaged

6ater re(uire'ent

!bout 16 HL of water will be reuired every working day

E'ploy'ent

BD persons of different category as per following table


38/51

Sl$

N

o

$

Type !n roll SalaryB

wa&es

per

'onth

Total

rupees

per

'onth

Annual cost

Rs$ In

La#hs

& anagerial )eniorP ' &3,((((( DE,((((( 7D'' )r @ngineer D &',((((( DE,((((( 7D'

D @ngineers D &(,((((( D(,((((( DE

7 /echnical supervisor 7 E,((((( '7,((((( '33

6 8on-/echnicalsupervisor

B 7,((((( DE,(((((

E .lerical staff ' D,6(((( 1,((((( (37

1 )killed worker &( D,6(((( D6,((((( 7'

3 )emiskilled worker D( D,((((( B(,((((( &(3

B 0nskilled worker D( ',((((( E(,((((( 1'

Total >@?$ @F$@C

Esti'ate" 0ro1ect ,ost Rs %n LakhsP


39/51


40/51

0ro1ecte" 0rofitability State'ent

Sl$

No$

)escription 8st

year

Fn"year >r"

year

@thyear th

year

Dthyear

%nstalled capacity in/

&6(( &6(( &6(( &6(( &6(( &6((

A$ 0ro"uction

& 0tili#ation 2 1( 3( 3( 3( 3( 3(

' "roduction &(6( &'(( &'(( &'(( &'(( &'((

-$ Inco'e fro'

& )ales of finishedproduct 6767& E'DD' E'DD' E'DD' E'DD' E'DD'

' /ransport subsidy onfinished product TB(2

7B& 6E' 6E' 6E' 6E' 6E'

D /ransport subsidy onfinished goods T6(2

(D' (DE (DE (DE (DE (DE

,$ Manufacturin& E7penses

& Raw materials &D&B3 &6(3D &6(3D &6(3D &6(3D &6(3D

' .onsumables 66&D ED(( ED(( ED(( ED(( ED((

D 9uel BEE &(D1 &(D1 &(D1 &(D1 &(D1

7 )tores C spares 6E& E7& E7& E7& E7& E7&

6 "ower energy charges &7(D &66B &66B &66B &66B &66B

E "ower demandcharge '1( D(( D(( D(( D(( D((

1 Labour C )upervisor D&(' D7&' D7&' D7&' D7&' D7&'

3 iscellaneous 76( E(( E(( E(( E(( E((

/otal . '67ED '3BDD '3BDD '3BDD '3BDD '3BDD


41/51

)$ A"'$ ; Sales E7penses

& !dm )alaries '3' D&( D&( D&( D&( D&(

' )ales !dm .ost E73 1&D 1&D 1&D 1&D 1&D

D iscellaneouse$penses incl "hone,printing stationary,traveling

E(( 3(( &((( &'(( &'(( &'((

7 )ales e$penses T ofRs &(((S- per /

&(6( &'(( &'(( &'(( &'(( &'((

/otal + '63( D('D D''D D7'D D7'D D7'D

E$ !peratin& 0rofit

-%3,)4 F$F >9$@ >$@ >$@ >$@ >$@

+$ )epreciation

*y )L ethod E63& E63& E63& E63& E63& E63&

A "rofit afterdepreciation @-9P

'(7DB '7DBD '7&BD 'DBBD 'DBBD 'DBBD

G %nterest .harges

& On term loan BB76 31(' 176B E'&E 7B1D D1'B

' On bank borrowing &7B' &7B' &D(E &&&B BDD 17E

/otal G &&7D1 &(&B7 31E7 1DD6 6B(6 7716

% "rofit before ta$es"*/P A-GP

B((' &7&B3 &67'3 &EE63 &3(31 &B6&1

= "rovision for ta$es

nil as per 8@%"

H "rofit after ta$es"!/P %-=P

B((' &7&B3 &67'3 &EE63 &3(31 &B6&1


42/51

SU00LIER !+ E


43/51

!RANE S


44/51

.hanges in e$port-import policies and e$change rate adjustments have helped improving

the e$port potential /here is a good international demand for certain fresh fruits as well

as processed fruits products

0olicies an" Re&ulations :

/hough no industrial licence is reuired for setting up 9ruit C Fegetable "rocessing 9C

F"P industries, setting-up &(2 @O0s reuires specific Aovt approvals

/his sector is regulated by the 9ruit "roducts Order, &B66 9"OP, issued under the

@ssential .ommodities !ct /he inistry of 9ood "rocessing %ndustries administers this

order /he order lays down product specifications and uality control reuirements on

production-hygiene, a labeling and marketing of processed fruit product

!ll processing units are reuired to obtain a licence under this order "eriodic inspections

of units are also carried out %n addition, consignments of fruit products intended for

e$port are subject to pre-shipment inspection under the 9"O any 9CF" industries are

eligible for automatic approval of foreign technology agreement and up to 6&2 foreign

euity participation /hese include4 tomatoes, mushrooms, fruit, nuts, fruit-peel, fruit

jellies, marmalades, fruit juices, etc

0ro'otional A&encies an" Assistance :

/he inistry of 9ood "rocessing %ndustries provides, assistance to the sector through

several plan-schemes, vi# : schemes for creating infrastructure, development of backward

linkages, RC+ and training etc /here are some other organi#ations like !"@+!, )9!.

and 8G*, which help in arranging inputs, marketing, e$port etc

/echnology- /he proposed manufacturing activity does not call for import of technology

Gowever, .9/R%, ysore may be contacted for technical know-how

0R!,ESS

S(uash

/he fruits orange C others like passionS peachS berryP are carefully sortedS selected

according to uality /he fruits are then washed with sprayed water to remove unwanted

elements !fter washing, the fruits are again inspected /he oranges are peeled /he


45/51

peeled oranges are put to juice e$tractor for e$traction of juice =uice is collected in

stainless steel tanks and fed into strainer where suspended coarse materials are removed

/he juice is then centrifuged in stainless steel centrifuge /he juice is diluted to reuired

concentration to which sugar and citric acid are added 8ecessary flavours, permitted

colour and preservative are also added to it to form suash which is subseuently filled in

glass bottles, sealed, labeled and packed in cartons for dispatch

*a'B Mar'ala"e

/he pulp produced after e$traction of juice is boiled along with sugar and citric acid at a

controlled temperature 0pon boiling reuired permitted colours, flavours and

preservatives are added %t is then cooled to reuired temperature and forms a jelly like

consistency /he jam thus obtained is filled in bottles, sealed, labeled and packed in

cartons for dispatch

To'ato Sauce

9ully ripe selected tomatoes are washed at first and then sliced %t is heated and passed

through pulper to produce pulp followed by sieving /he liuid pulp is boiledS cooked

with various ingredients ground spice, garlic, onion etc as per formulationP followed by

addition of sugar, salt, acetic acidS vinegar, chemicals etc )odium *en#oate is generally

added before the product is filled into washed bottles, sealed, labeled and packed incartons for dispatch

0ropose" capacity

/he unit will operate on two-shift basis per day for '6( days per annum /he unit will

have the fle$ibility to process nearly 6(( Hgs each of Orange and mi$ fruit per shift,

depending on the availability /he profile is based on processing of orange for (( days,

mi$ed fruits for '6 days and /omato for E( days

/he production and product-mi$ at different capacity utili#ation per annum will be as

follows:


46/51


47/51

finished product

6 .itric acid, colours,preservatives, slat,chemicals, spices etc

T Rs 6(S/

(&B (''

E )uash bottle 1((mlP

6'6(( "cs '3B E(((( "cs DD(

1 =am jars 6(( gmP &7((( "cs ED( &E((( "cs 1'(

3 )auce bottle &((gmP

1((( "cs (7' 3((( "cs (73

B LabelS.apSLid etc - (&3 - ('(

&( .artons with printing - ('3 - (D'

&& 9uel for generatingsteam as well as for+A set

63( HL &&E E''HL &'7

Total 89999>$D >8$9 FFC@8$@ >D$@>

Lan" re(uire'ent : 7(( sm

0lant an" E(uip'ent: /he main plant euipment will be : "ulper, fruit cutting knives,

juicing machine, rosing machine, stainless steel storage tank, blending tank, steam

jacketed stainless steel vessel, strainer, pasteuri#er-cum cooler, bottle washer, cap sealing

machine, bottle filling machine, label gumming machine etc

!ther support facilities re(uire are: 5ater purifier, ini boiler, laboratoryS testing

euipment, weighing scale, electrical installation, small fuel oil storage system, etc

-uil"in& an" ci/il wor#: !bout '(( s m industrial and other shedS building including

aseptic rooms and raw material refrigerated room

0ower re(uire'ent: /otal connected load of about D( H5 will be reuired +ue to

present short supply of power of +A set back up to D( HF! is also envisaged

6ater re(uire'ent: !bout ( HL of water will be reuired every working day


48/51

E'ploy'ent: '( persons of different category as per following table

Sl$

No

Type !n roll SalaryB

wa&es

p$'$

Total

rupees p$'$

Annual /alue

Rs$ In La#has

& anagerial )eniorP ' E,((((( &',((((( &77

' /echnical supervisor ' 6,((((( &(,((((( &'

D 8on technical supv ' D,((((( E,((((( (1'

7 .lerical staff D D,((((( B,((((( &(3

6 )killed worker D D,6(((( &(,6(((( &'E

E )emiskilled worker 7 D,((((( &',((((( &77

1 0nskilled worker 7 ',((((( 3,((((( (BE

Total F D?$ C$8

Esti'ate" 0ro1ect ,ost 3with out cost of procurin& lan"4 Rs %n LakhsP

)escription of In/est'ent Total ,ost

"reliminary e$penses (E'

Land and Land +evelopment (1(

.ivil )tructural 16(

ain "rocessing "lant @uipment 16(

!u$iliaries (E3

0tilities 6D(

"ollution control (6(

Others &D'

@lectrical &E6

@ng C pre operative e$penses E((

argin for working capital 7'D

Total ,apital ,ost >D$


49/51

-rea# 5e/en 0oint: *reak-even "oint of the project is determined in the ' ndyear at 3(2

of installed capacity /he break-even point of the projection is at 7D2 of installed

capacity in the 'ndyear of operation when plant optimi#es its production at &77 /"M

0ay -ac# 0erio": /he entire capital investment e$cluding margin for working capitalwill be paid back within ' years and && months of operation /he pay back amount is

computed from the adjusted cash flow

Internal Rate of Return: On an average 7DD(2 net of ta$ will be earned on the

invested amount less of margin for working capitalP in each year for ( years, after

allowing for the repayment of the sum originally invested

0ro1ecte" 0rofitability State'ent 3Rupees in La#hs4

Sl$

No$

)escription 8st

year

Fn"year >r"

year

@thyear th

year

Dthyear

%nstalled capacity in/

&3( &3( &3( &3( &3( &3(

A$ 0ro"uction

& 0tili#ation 2 1( 3( 3( 3( 3( 3(

' "roduction &'E &77 &77 &77 &77 &77

-$ Inco'e fro'

& )ales of finishedproduct

E&B6 1(3( 1(3( 1(3( 1(3( 1(3(

' /ransport subsidy onfinished product TB(2

(6B (E1 (E1 (E1 (E1 (E1

D /ransport subsidy onfinished goods T6(2

((7 ((7 ((7 ((7 ((7 ((7

,$ Manufacturin& E7penses

& Raw materials '(67 'D71 'D71 'D71 'D71 'D71

' .onsumables &('6 &&1' &&1' &&1' &&1' &&1'

D 9uel &&E &'7 &'7 &'7 &'7 &'7

7 )tores C spares (7E (6D (6D (6D (6D (6D


50/51


51/51

Supplier of e(uip'ent

))" Limited

ather C "latt %ndiaP Ltd, umbai

"asteur @ngineering .o Ltd, Holkatta

"rocess achinery and @uipment "vt Ltd, Holkatta

*atliboi C .o Ltd, Holkatta

"@. *oilers "P Ltd, Holkatta

aayan formated

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