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Project Description
The project envisions setting of up a Freeze Dried Fruit Juice Powder/ slices and dices manufacturing
unit from fruit pulp of Papaya, Banana, Mango and Sapota.
Product Application
Freeze dried fruit juice powders /slices and dices are also used as convenience foods in lieu
of fresh ingredients and offer longer storage life than fresh fruits.
Freeze dried fruit powders/ slices and dices are often used for making many delicious food
products like Fruit drinks, ice creams, thick shakes, yogurt and other desserts when fresh
fruits are not available.
Fruit powders /slices/ dices contain 4% or less moisture and can be used to make soft candy,
toffee and hard candy. The application of the fruit juice powder is growing in the form of
making instant juice mixes, flavoring baby / infant foods, preparing food premixes, and range
of bakery products.
The fruit powder is particularly suitable for use in rich cream fillings, chocolate products and
baked goods as well as in cereals and fruit bars. Fruit granules are used in products where
not only is the fruit content desired but also texture and crunchiness is required.
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Project Profile on Mott MacDonald
Freeze Dried Fruit Juice Powder iNDEXTb
The export’s of processed fruits and juices from April – June 2005 was valued at an estimated amount
of INR 1070 million, which improved in the year 2006 and was recorded at INR 1679 million.
UK
Saudi 10%
UAE Arabia
6% 9%
Source: Ministry of Commerce and Industry, India
As planned by the Ministry of Food Processing, India’s share in global food trade is estimated to
elevate from 1% to 3%. The market size for processed foods is estimated to reach INR 13500 billion
in the year 2014 -15, from INR 4600 billion in the year 2003-04 and the share of value added products
in processed food consumption is estimated to reach 58% from 38% by the year 2014 - 2015.
The major market for mango pulp exports are The Netherlands, Saudi Arabia, Kuwait and Hong Kong.
Singapore, USA, UK, Germany and UAE are for processed mango products like pickle and chutneys.
Export of Juices, tomato paste etc. is mainly concentrated in USA, Russia, UAE and The Netherlands.
Overall the major market for Indian processed fruit export are Russia (14%), USA (13%), UK (10%),
Saudi Arabia (9%), UAE (6%) and others (48%).
Processed foods division of M/s.Vadilal Industries is already manufacturing slices and dices of
Sapota, Papaya and Mango in their processing unit at Dharampur, in Valsad district. In the proposed
project also mainly Papaya, Banana, Sapota and Mango will be processed for manufacturing freeze
dried fruit juice powders / slices and dices for domestic and export markets.
Growth Drivers
Changing food habits in the country has increased consumption of fruit and fruit products and
hence market for fruit juice powder/ slices/ dices have also increased.
Increasing number of nuclear families in India particularly in urban and semi urban areas, and
increasing number of working women in the country has increased demand of products like freeze
Dried fruit juice powder /slices and dices.
Why Gujarat?
Availability of all fruits and vegetables that are used in making freeze dried fruit powder/slices
and dices at different season time in hygienic condition at reasonable cost
Well developed infrastructure like road, rail, port and air connectivity to domestic and export
markets
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Project Profile on Mott MacDonald
Freeze Dried Fruit Juice Powder iNDEXTb
Gujarat has the necessary infrastructure of fruit processing units that can cater to the growing
demand from export markets.
Gujarat is having several food processing units like Ice cream and dairy products
manufacturing leading brands (Amul, Vadilal, Havmor etc;), Fruit drink concentrate
manufacturers (Rasana Brand- Pioma Industries Pvt. Ltd) , hence ready domestic market is
available.
Press
Sediment Finish Pulp Juice
Clarify Strain Grind Extract /
slices /
Filter
dices
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Project Profile on Mott MacDonald
Freeze Dried Fruit Juice Powder iNDEXTb
Ripened fruits are inspected, washed, blanched, peeled, pulped (Sliced or diced), centrifuged,
homogenized fruit juice. These fruit juices, in turn are freeze dried using Plate freezer manufacturing
process to remove water from the material. Fruit juice powder / slices / dices will be manufactured
using freeze drying process and aseptically packed in pre-sterilized, high barrier bags-in-drums which
preserve the taste, flavour, colour and aroma of the fresh fruits.
The equipment process piping, layout etc. will have to be carefully designed, keeping in mind the
GMP and Hazard Analysis and critical control points (HACCPs) provisions. Strict sanitation and
hygiene condition is necessary to maintain quality of end products.
Raw Material
The following table summarizes Gujarat’s potential in production of the two proposed fruits for the unit.
Production of Banana & Mango in Gujarat
Sr.
Fruits Years
No.
2001-02 2002-03 2003-04 2004-05 2005-06
1 Banana 1154330 1403077 595206 729076 772134
2 Mango 457550 495086 1760901 1979257 2498776
Source: Directorate of Agriculture, Government of Gujarat
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Project Profile on Mott MacDonald
Freeze Dried Fruit Juice Powder iNDEXTb
As indicated above, the proposed project will require an approx 6000 sq. mt of land with an proposed
built up area of 1500 sq. mt. The unit is proposed to have an installed capacity of 900 TPA or
considering 180 days working in a year the plant will have installed capacity of 5 MT / day. The total
fixed cost of the project is estimated at INR 52.50 million and INR 7.50 million will be the working
capital margin, which put together make estimated capital cost of INR 60 million. The unit is proposed
to cater to domestic as well as to International demand and hence it is suggested to have a Debt
equity ratio of 2.0:1. On the basis of suggested debt-equity ratio, proposed term loan amount will be
INR 40 million and promoters’ share in the form of equity will be INR 20 million.
Utilities
The unit would necessitate utilities like water, electric power and refrigerant for cooling. 50 KL water
will be required for washing, cleaning and process, 120 HP connected power and Ammonia gas as
refrigerant, would be a basic requirement for the proposed unit.
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Project Profile on Mott MacDonald
Freeze Dried Fruit Juice Powder iNDEXTb
Man power
The proposed unit would require 40 persons, this will include 4 managerial level people, 4
Supervisors, 8 plant operators, 4 office assistant cum account staff, 4 skilled and 12 unskilled workers
and 4 security staff.
Suggested Location
The preferred location will be Central and South Gujarat as major fruit production area and consuming
market present there. The suggested location can be in the district of Surat, Vadodara, Valsad,
Bharuch, Ahmedabad and Anand.
st nd rd
Sr. No Financial Ratios 1 Year 2 Year 3 Year
A Break-Even Point in % Capacity 41.30 37.02 33.24
As perceived from the Project cost and Means of finance table, the suggested Debt Equity Ratio for
the proposed project is 2.5:1. The IRR (Internal Rate of Return) for the proposed project is approx.
42% projected for a period of 10 years.
Clearance Required
The proposed unit will have to register itself with Secretariat of Industrial Approvals (SIA), Ministry of
Industries and Government of India, by filing Industrial Entrepreneur’s Memorandum (IEM), as it will
have plant and machinery investment of more than INR 10 million.
As mentioned previously the proposed will be exporting Freeze Dried Fruit Juice Powder in advance
countries like USA, Canada, UK, Europe and Australia. The unit will require to get register their
product with Food and Drugs Administration (FDA) in these countries, apart from registration with
Indian and State Food Administration.
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Project Profile on Mott MacDonald
Freeze Dried Fruit Juice Powder iNDEXTb
The unit will also require registering with RBI, DGFT, MOFPI and APEDA as registered manufacturer
exporter to avail export incentives.
Critical Aspects
The most critical aspect of this product will be its shelf life for export consumers and hence there will
need for import of stabilizers and preservative meeting FDA regulations in consuming countries and
Codex standards followed by them.
Agencies to be contacted
Industrial Extension Bureau
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