MIXED FRUIT JAM, JELLY, PICKLE MAKING (Fruit & Vegetable Processing Unit)

INTRODUCTION India ranks second in production of fruit & vegetables in the world. It produces a wide range of fruit of which mango, banana, orange, pineapple, guava, apple and citrus for 75 percent of the total fruit production in the country. India produces about 70 different varieties of leafy, fruity & starchy tuber varieties of vegetables in the country. Only 0.5 to1 percent of the raw materials is processed. Food processing industry has started receiving a great deal of attention from the policy makers. In India very little effort has been made so far in streamlining the production, procurement, processing and marketing of perishable horticultural products specially fruits & vegetables. There has been a change in the trend of consumption of fruit during the last few years in our country. North Eastern India produces a large quantity of fruit & vegetables. The current industrial policy environment is favorable for development of food processing industry. The Government of India has been making efforts to accelerate the pace of development in processing industry. PRODUCT USES Most kinds of fruit and some vegetables are used to make a wide variety of jam and jelly. Fruit Jam contains rich fruit pulp and available in mango, apple, mixed fruit, pineapple and orange flavors. Jelly is a clear, bright mixture made from fruit juice, sugar and sometimes pectin. Jelly and jam is used as bread spread and as a filling for some cakes and cookies. Spicy pickles are very important item in Indian meal. Pickles enhance the taste of the meal and increase the satisfaction after every meal. MARKET POTENTIAL It is estimated that the total production of processed fruit & vegetable in India is about 15.0 lakh tonne. Out of various products fruit juices and fruit pulp accounts for 27 percent, followed by ready-to-serve beverages and pickles being between 12 to 13 percent each, jams & jellies 10 percent and synthetics 8 percent. There are good reasons to belive that the processed products of fruit & vegetable business will remain a growth industry for a long time, one of the main reasons for expectation of growth is that the consumption of mixed fruit jam/orange jam/jelly/marmalade/pickle is gaining popularity day by day owing to the growing change in the food habits and increased consumption of bread and other convenient snack foods. Among the established brand in the jam/jelly segment, Druk, Kissan, Dipys tims and Sil are the prominent names and in case of pickle production, Nilons/Arnapurna/priya are famous. SUGGESTED CAPACITY The production and product-mix at different capacity utilization per annum will be as follows: Item 1. Mixed Fruit Jam & Jelly 2. Orange marmalade 3. Pickle Basis:No. of working days No. of Shifts One shift = = = = 25 days per month 250 days per year(Avg.) 1 per day. 8 hours Installed Capacity (TPA) 70 45 12 1st year production @80% 55 35 10 2nd year onwards production @90% 62 40 11

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INFRASTRUCTURE REQUIRED The main Infrastructural facilities required are: Covered shed area Power requirement Water (required in every working day) Fuel (gas cylinders annually)

800 sq. ft. 20 kw. 5,000 kl. 150 nos.

RAW MATERIALS REQUIRED AND AVAILABILITY The major raw materials required for production of mixed fruit jam & jelly, marmalade are orange, pineapple, guava, jackfruit and banana. For pickle making major raw materials are unripe mangos, lemons, carrots, cauliflower etc. The consumables are sugar, citric acid, preservatives, colours, chemicals, common salt, different spices, musterad oil etc. The product will be packed in glass bottle/jars and finally in cartons. North eastern region is important in fruit production. Raw materials are available round the year. All these fruits & vegetables are available within state, NER and other parts of the country and may be procured from different producing centre in different seasons. All raw materials & consumable items can be procured from local agencies in the open market. The cost of fruits, vegetables & consumables mentioned under, has been taken considering the seasonal fluctuation in price. SUGGESTED LOCATION Fruit & vegetable based projects should be located, surrounded by available raw materials as well as skilled manpower, in NER including sikkim PRODUCTION PROCESS The fruit & vegetables are washed peeled and sliced and send for production of jam, jelly, marmalade and pickles. Jam: The fruit are cleaned, washed and sliced. Slices are than converted to pulp in a pulping machine. Pulp is then transferred to a stainless steel steam jacketed vacuum pan in required lots and boiled. 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 220oC to 220oC determined by a preservers thermometer. The product is cooled before packing. As fruits are seasonally available, the total production has been considered on the basis of 200 days per year. Orange/Pineapple marmalade: Fruits are carefully stored according to quantity, then washed with sprayed water to remove unwanted elements. The fruits are peeled and peeled fruits are put to juice extractor, 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 form a jelly like consistency. The finished product thus obtained is filled in bottles, sealed, labeled and packed in cartons for dispatch. As orange/pineapple are seasonally grown, the total production has been calculated on the basis of 150 days per year. Jelly: The washed and peeled traits are fed into hopper of 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 juices are sent into stainless steel blending tank, where juice is mixed with sugar syrup and other ingredients like citric acid essence. The product is cooled before packing. As fruits are seasonally available, the total production has been considered on the basis of 200 days per year. Pickle: The washed, peeled and sliced unripe fruit and vegetables are kept in 2 percent common salt solution for 24 hours. The process is repeated for another three days. On the fifth day after proper curing the fruit & vegetables, the cured materials are washed thoroughly in clean hot water. The products kept in vinegar of 5% acetic acid solution, spice and condiment and smeared with a little oil. Packing the pickles in glazed jars or bottles and covered with oil and sealing the containers airtight. Preservatives may be added before packing. Total 300 working days has been taken as basis in calculation of project economics.

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PROJECT ECONOMICS The total capital requirement estimated is Rs.24.25 lakhs as given below:B. Fixed Capital Land Land Development Cost Building/Civil Works i.) ii.) iii.) Work shed 400 sq. ft. Office/Store/Reception 400 sq.ft. Toilet/Bathroom/cemented open space Drainage facilities etc. (Rs. in Lakhs) Own/Lease 2.50

2.40 3.20 1.25 3.35 1.80

Plant & Machinery Misc. Fixed Assets (water arrangement/overheadreservoir/ pump-set/power line connection/ water & electrical fittings/office equipments) Preliminary & Pre-operative Expenses

0.80 15.30 (Rs. in Lakhs) 1.30 1.15 1.10 2.42 2.52 8.95 Rs. 3.20 Rs. 5.75 Rs. 8.95 (Rs. in Lakhs) 4.62 13.88 Rs.18.50 (Rs. in Lakhs) 25.98 17.55 13.94 1.02 0.25 0.45 9.00 0.98 2.93 72.10 -----------(Rs. in Lakhs) 28.00 56.00 28.00 90.00

Working Capital Raw Materials/Consumables Packing Materials ` Working Expenses Finished Goods Receivable

(Norms) 10 days 1 month 1 month 10 days 7 days

Note: Working Capital to be financed as:Margin Money: Bank Finance:

Means of Finance Promoters Equity(25%) Term Loan(75%)

Cost of Production & Profitability Raw materials/consumables Packing materials & Printed levels Wages & Salaries Utilities Repair & Maintenance Administrative Overhead Selling expenses 10% on sales Depreciation Interest

Sales Turnover I. Selling of Marmalade 500gm. size 70,000 bottle @ Rs. 40/- per bottle II. Selling of Jam/Jelly 500gm. Size1.60 lakhs bottle @ Rs. 35/- per bottle III. Selling of Pickle 500gm. size 30,000 bottle @ Rs. 20/- per bottle

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Profitability: Based on the sales realization and the operating expenses, the profit would be Rs. 17.90 lakhs per year. This works out to a return on capital investment of 74%. The unit would break-even at about 41% of the rated capacity. Break Even Analysis A. Variable Cost: Raw Materials/Consumables Packing Materials Utilities Selling Expenses

(Rs. in Lakhs) 25.98 17.55 1.02 9.00 53.55 (Rs. in Lakhs) 13.94 0.25 0.45 0.98 2.93 18.55 Rs. 90.00 Lakhs Rs. 36.45 Lakhs 41%

B. Semi-Variable Cost: Wages & Salaries Repair & Maintenance Administrative Overhead Depreciation Interest C. D. E. Sales Realisation: Contribution Break Even Point (/D X 80% (capacity Utilization)

Machinery & Equipment Name of the machinery 1. Pulping Machine(pulper junior) 2. Rosing M/C for orange juice 3 Pineapple Crushing M/C 4. Juice Pressing M/C 5. Steam Jacketed kettle with pan and stainless still tilting type complete with pressure gauge safety valve steam cokes and stands (capacity100 ltrs. 6 Steam generator with accessories like safety valve pressure gauge and water pump 7 Mango cutter/food vegetable slicing M/C 8 Fruit & Vegetables slicer heavy duty(hand operated) 9 Power Grinder for spice 10 Crown Corking M/C Floor model foot operated 11 Sealing M/C, heavy duty pedestal model with automatic threading & roller operation with one size of die hand operated 12 Other misc. items like-Aluminum gamla, saucepan, weighing balance, processing table, knives, Punching M/C etc. No. of M/C required 1 1 1 1 1 set Power Required 1 H.P. 1 H.P 1 H.P 1 H.P Value (Rs. in lakhs) 0.25 0.23 0.28 0.26 0.45

1 set

0.50

1 1 1 1 1

0.50 H.P 1 H.P 1 H.P.

0.16 0.06 0.28 0.08 0.21

L.S.

0.51

Total Rs. Add. 15% towards Packaging, forwarding, Insurance, Transportation, Loading, Unloading, Installation & Commissioning etc. Total Cost of Machinery Installation Rs.

2.91 0.44 3.35

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Raw Materials/Consumables Items Product-wise Quantity (per day) A. Pineapple/Orange Marmalade 192 kg. ii) Orange/Pineapple 41 kg iii) Sugar L.S. iv) Others B. Jam & Jelly i) Fruits 190 kg. ii) Sugar 210 kg iii) Preservatives & Others L.S. C. Pickle i) Fruits/vegetable 190 kg. ii) Common salt, spices & 210 kg chemicals iii)Preservatives & Others L.S.

Rates (Rs.)

Amount per day (Rs.)

Annual Requirement (Rs. in Lakhs)

12 per kg. 17 per kg. 25 per kg. 17 per kg. 25 per kg. 17 per kg. -

2304.00 697.00 150.00 4750.00 3570.00 200.00 4750.00 3570.00 200.00

3.46 1.05 0.23 9.50 7.14 0.40 9.50 7.14 0.40

Packing Materials and Printed Labels (Annual Requirement) Products Size of Quantity Unit Price Value Bottle/jar (nos.) (Rs.) (Rs. in lakh) 1. Orange/Pineapple Marmalade 500 gm. 70,000 5.50/bottle 3.85 2 Jam & Jelly 500 gm. 1,60,000 5.50/bottle 8.80 3. Pickle 500 gm. 30,000 5.50/bottle 1.65 4. Bottle cap Above sizes 2,60,000 0.75 per cap 1.95 5. Printed Labels -do2,60,000 0.50 per labels 1.30 6 Cartoon Package L.S. 0.50 17.55 Total Cost of Packing Materials and Printed Labels Rs. Manpower Category No. of Person Salary Per Person Monthly Salary Bill Per Month(Rs) (Rs.) a) Manager 1 10,000 10,000 b) Chemist 1 10,000 10,000 c) Supervisor cum Skilled 2 6,000 12,000 Worker d) Semi-skilled workers 3 5,000 15,000 e) Un-skilled workers 8 3,000 24,000 f) Selling & Marketing 5 6,000 30,000 Total Manpower cost Rs. 1,01,000 Salary Bill Rs 12.12 Lakhs + Benefits @15% annually i.e. Rs 1.82 Total Annual Salary Bill : Rs. 13.94 Utilities Power for Machinery: General Lighting: 6.5 H.P. 2.0 H.P --- ----------8..5 H.P. -------------Rs. 5.50 Rs. 41,850 Rs. 15,000 Rs. 45,000

c)

b) c)

Electricity Bill: 8.5 H.P. X 0.746 KW X 6 Hrs. X 200 days X Hence, annual Electric bill Water Charge = 5000 Ltrs. per day(L.S.) Fuel (Gas Cylinders) 150 cylinder X 300

Total Utilities (a + b + c ) = Rs. 1,01,850 Say, Rs1.02 Lakhs

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Highlights: The major highlights of the project are as follows: Total Capital requirement Promoters contribution Annual Sales realization Annual Operating Expenses Annual Profit Return on sales Break-even point No. of person employed Rs. Rs. Rs. Rs. Rs. 24.25 lakhs 5.25 lakhs 90.00 lakhs 72.10 lakhs 17,90 lakhs 20% 41% 20

Machinery Suppliers: Supplier of chemicals & consumables 1. M/S Narangs Corporation 5. M/S Assam Essence Supply & Co P-25, Connaught Place Lalsing Mansion (2nd Floor) New Delhi-110 001 A.T. Road, Guwahati-781 001 2. M/S Gee Gee (Food & Packaging) Co. (P) Ltd. B-188/2 Savitri Nagar, Malviya Nagar, New Delhi-110 017 3. M/S Bhuvaneswari & Co Old Trunk Road, Pallavaram, Chennai- 600 043 4. M/S Nagpal Brothers C-127, phase-II, Mayapuri Industrial Area., New Delhi-64 FORMAT 1. 2. 3. 4. 5. Introduction. About the Product Market Potential Suggested Capacity Infrastructure requirement a) Covered Area b) Utilities Raw Materials and its availability Suggested Location Production process(step wise) Project Economics a) Capital Cost. b) Working Capital requirement c) Cost of Production & Profitability d) Turn Over e) Sources of Finance f) Plant & Machineries g) Cost of Raw Materials & Consumables h) Cost of Utilities & Overhead i) j) l) Manpower requirement & wage bill Profit Sales ratio Break Even Point

6. 7. 8. 9.

k) Rate of Returns

Addresses of machinery suppliers/manufacturers

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