RTS JUICE PLANT

[EIRI/EDPR/3246] J.C.: 1312

INTRODUCTION

Juice is a beverage made from the extraction or pressing out of the natural liquid
contained in fruit and vegetables. It can also refer to liquids that are flavored with
these or other biological food sources such as meat and seafood (e.g., clam juice).
Juice is commonly consumed as a beverage or used as an ingredient or flavoring
in foods or other beverages, such as smoothies. Juice emerged as a popular
beverage choice after the development of pasteurization methods allowed for its
preservation without using fermentation (the approach used with wine
production). The Food and Agriculture Organization of the United Nations (FAO)
estimated the total world production of citrus fruit juices to be 12,840,318 tones
in 2012. The largest fruit juice consumers are New Zealand (nearly a cup, or 8
ounces, each day) and Colombia (more than three quarters of a cup each day).
Fruit juice consumption on average increased with country income level. To the
American food industry, fruit juice is more profitable than only fruit.

Packaged juice market has charted a high growth trajectory, thanks to its easy
availability, anytime-anywhere consumption, and convenience.

Within the beverages market, the fruit-based beverages category is one of the
fastest growing categories, and has grown at a CAGR of over 30 percent over the
past decade. As of March 2013, the Indian packaged juices market was valued at
Rs 1,100 crore (~USD 200 million) and projected to grow at a CAGR of ~15 percent
over the next three years.

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The packaged fruit juices market can be divided into three sub-categories: fruit
drinks, juices, and nectar drinks. Fruit drinks, which have a maximum of 30
percent fruit content, are the highest-selling category, with a 60 percent share of
the market. Frooti, Jumpin, Maaza, etc. are the most popular products in this
category. Fruit juices, on the other hand, are 100 percent composed of fruit
content, and claim a 30 percent market share at present. In contrast, nectar
drinks have between 25 and 90 percent fruit content, but account for only about
10 percent of the market.

The rising number of health-conscious consumers is giving a boost to fruit juices;

it has been observed that consumers are shifting from fruit-based drinks to fruit
juices as they consider the latter a healthier breakfast/snack option.

Dabur is the market leader in the Indian packaged juices market with its brands
Real and Real Active. Other players include Parle, Fresh Gold, and Godrej. Some
of the other brands of fruit juices and drinks include Frooti, Appy, Mazza, Minute
Maid, Slice, Fresh Gold, and Del Monte. Considering the attractiveness of the
segment, diversified consumer food companies such as ITC are working towards
making a foray into packaged juices.

As per studies, the most preferred pack size is the individual (small) pack which is
convenient, and easy to carry and consume. These are in great demand as out-of-
home consumption is on the rise. Tetrapaks are most popular among
manufacturers as well as consumers. Some companies are also offering their
products in tins (eg Del Monte) and PET bottles (eg Mazza); however, they are more
expensive than Tetrapaks, which adds to production costs, and, as a result,
affects the market price.

Fruit juices have created a space for themselves in regular household menus, as a
part of a family’s breakfast, social gatherings, and evening snacks. As a result,
consumers are picking up multiple family packs at one go, which is an emerging
consumption trend.

There are several reasons behind the growth of the Indian packaged juices
category: Changing consumer lifestyles, increased health awareness, hygiene
concerns, growing category of informed buyers, rising disposable incomes,
booming modern retail, habitual purchase, and introduction to new flavours.

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Among all challenges, it is difficult to control the cost of production at the price
points of juices, primarily because of rising food inflation. The continuous, year-
long supply of raw materials, and the non-stop production of juices for the full
season, is another production-linked issue which needs to be managed carefully.
Also of vital importance is controlling transportation and logistics costs.

Packaged juices are gradually cementing their place in the urban household in the
metros and tier I cities; however, replicating the same success in tier II and III
cities is still a struggle as residents in these regions still prefer fresh juices over
packaged ones because they are comparatively cheaper, and also in sync with the
traditional belief that juices are best consumed freshly pressed.

It is appropriate to say that the packaged juices market in India is still evolving.
As there are many national and international brands on the verge of succeeding
and expanding further into the field, new entrants can also cash in on this
opportunity by positioning/promoting packaged and bottled fruit juices as part of
the consumers’ daily diet. Simultaneously, it is critical to ensure affordability for
consumers, while maintaining the hygienic aspects and quality of products
throughout the year.

The commercial production of fruit juices began in Europe shortly after the term
of the century when the Boehi process was developed for the storage of apple
juices under Co2 and refrigeration. The bulk storage permitted distribution of
juice in returnable bottles over an extended period. Prior to that time fruit juices
were available for only short periods after harvest and before the onset of
fermentation.

In the united states, the sale of bottled or canned juices-tomato, grape, and eitrus-
started around 1929. During world war II, commercial Juice production was
greatly increased and the market continued to expand in the postwar years
through the application of new technologies.

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 CONTENTS

INTRODUCTION
TOP 10 BEST PACKED FRUIT JUICE BRANDS IN INDIA
USES AND APPLICATIONS
AVAILABILITY OF RAW MATERIALS
B.I.S. SPECIFICATION
OVERVIEW OF FRUIT BASED BEVERAGES
MARKET SURVEY
BRANDED FRUIT JUICE SEGMENT
MANUFACTURERS/EXPORTERS OF FRUIT JUICES
MANUFACTURE OF RTS JUICE
PROCESS FLOW SHEET
PROCESS OF FRUIT JUICE
FILTRATION
PRESERVATION
PROCESS FLOW SHEET
PRODUCTION METHOD OF FRUIT BASED BEVERAGES
MANUFACTURE OF PASSION FRUIT JUICE
PREPARATION AND PROCESSING OF FRUIT JUICE
MANUFACTURE IN GENERAL
CLEANING
SORTING
COMMINUTION
ENZYME TRETMENT OF PULP
PRESS AIDS
EXTRACTION
CITRUS
DECIDUOUS
CLARIFICATION
PASTEURIZATION
CHEMICAL PRESERVATIVES
INDIVIDUAL MANUFACTURING PROCESSES
1. PROCESSING OF PINEAPPLE
SOURCES OF BEVERAGE JUICE
1. CORES
2. JUICE TRIMMINGS
3. ERADICATOR MEAT
4. SMALL FRUIT
5. JUICE DRAINED FROM CRUSHED PINEAPPLE (KETTLE DRAINED)

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6. JUICE DRAINED FROM ERADICATOR MEAT
7. JUICE DRAINING FROM CYLINDERS AND SLICES DURING PROCESSING
TRIMMING SLICING GRADING
AND PACKING OPERATIONS
JUICE PREPARATION
BLENDING
WASHING
SORTING
JUICE PROCESSING
UNCLARIFIED JUICE
"CRUSED" APPLE JUICE
CENTRIFUGED APPLE JUICE
FILTERED APPLE JUICE
QUALITY CONTROL IN FRUIT JUICES
PRESERVATIVES IN FRUIT JUICES AND FRUIT DRINKS
DETAILS & TECHNICAL SPECIFICATION OF PLANT
& MACHINERY FOR RTS JUICE
SCHEME OF TREATMENT
PROCESSING SECTION FOR JUICE PLANT
PLANT LAYOUT
SUPPLIERS OF PLANT & MACHINERY
ROTARY WASHER
PEELING MACHINE
FRUIT WASHER
JUICE EXTRACTOR
LABORATORY EQUIPMENTS/LABORATORY TESTING EQUIPMENTS
FILTER PRESS
JUICE HOMOGENIZER
AIR COMPRESSOR
BOILERS
PLATFORM WEIGHING MACHINE
SUPPLIERS OF RAW MATERIALS
PET PREFORMS

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APPENDIX – A:

01. PLANT ECONOMICS

02. LAND & BUILDING
03. PLANT AND MACHINERY
04. OTHER FIXED ASSESTS
05. FIXED CAPITAL
06. RAW MATERIAL
07. SALARY AND WAGES
08. UTILITIES AND OVERHEADS
09. TOTAL WORKING CAPITAL
10. TOTAL CAPITAL INVESTMENT
11. COST OF PRODUCTION
12. TURN OVER/ANNUM
13. BREAK EVEN POINT
14. RESOURCES FOR FINANCE
15. INSTALMENT PAYABLE IN 5 YEARS
16. DEPRECIATION CHART FOR 5 YEARS
17. PROFIT ANALYSIS FOR 5 YEARS
18. PROJECTED BALANCE SHEET FOR (5 YEARS)

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 COST ESTIMATION

Plant Capacity 14,000 Ltr./Day

Land & Building (4 Bigha) Rs. 2.86 Cr
Plant & Machinery Rs. 2.42 Cr
Working Capital for 2 Months Rs. 2.60 Cr
Total Capital Investment Rs. 8.00 Cr
Rate of Return 45%
Break Even Point 40%

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