Kriti Makkar/ Madhu Agarwal/ Piyush Agarwal/ Satyam Kinno/ Shalabh Chauhan/

[Type the document title]

July 11

2011

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CONTENTS

1. Project At A Glance.............................................................................................. 2. Introduction............................................................................................................ 3. Raw Material............................ .............................................................................. 4. Market Analysis..................................................................................................... 5. Process Of Flow Chart........................................................................................... 6. Technical Aspects & Manufacturing Process....................................................... 7. Detail Of Utilities................................................ .................................................. 8. Marketing.............................................................................................................. 9. Estimates Of Production & Sales...................................................... .................... 10. Financial Plan & Projection...................................................................................

PROJECT AT A GLANCE

Proposed Industrial site Area of Plot Applied for Proposed Covered Area Ground Floor (Sq.Fts) First floor (Sq.Fts)

: : : : : :

At Masuri Gulawat Road 600 SQ.MTRS

3500 3500 FOOD PROCESSING INDUSTRY MANUFACTURING OF JAM, JELLIES ETC.

Type of Industry

OBJECTIVES

Long Term (VISION):

y

To be a billion dollar global manufacturer.

Short Term (MISSION):

y

To provide the distributors and contractors with unsurpassed quality, customer service and satisfaction with effective transparent communication and nurturing and promulgation of values and creativity.

INTRODUCTION

Jams and jellies are spread typically made from fruit, sugar and pectin. Jelly is made with the juice of the fruit: jam uses the meat of the fruit as well .Some Vegetable jellies are also produced.

Preserving foods was a home based operation unit in the nineteenth century. Even today millions of people make fruit preserves in their own kitchens. Whether in the home kitchen or in a modern food Processing plants, the procedure is essentially the same. Fruits are chopped and cooked with sugar and pectin until a gel is formed. The jam or jelly is then packed into sterilized jars.

RAW MATERIALS
Jams and jellies are made from a variety of fruits, either singly or in combination. Most of the fruits are harvested in the fall. Most jam and jelly producers develop close relationship with their growers in order to ensure quality. The production plants are elapsed between harvest and preparation in between 12-24 hours.

Sugar or high fructose corn syrup, or combinations of the two are added to the fruit to sweeten it. Cane sugar chips are the ideal type of sugar used for preserving food. Sugar is purchased from an outside supplier.

The element that allows fruit to gel is Pectin. It is present in varying degrees in all fruit. Apples, blackberries, cherries, citrus fruits, grapes, quinces and cranberries have the best natural gelling properties.

Critic acid is added to obtain the correct balance needed to produce the jam or jelly. Lime and lemon juice rate high in citric acid, therefore they are the most prevalent source used. Citric acid can also be obtained by the fermentation of sugars. It is purchased from outside suppliers.

Others flavorings, such as Vanilla, cinnamon, mint, alcoholic, beverages such as rum or Kirsch, can be added to the jam or jelly. These flavorings are purchased from outside suppliers.

MARKET ANALYSIS

OVERALL MARKET
Domestic demand for fresh fruits in india has been on the increase in the line with rising incomes, population growth and increased health consciousness among consumers. Fruit consumption in india is anticipated to increase by about 4 percent per year according to projected growth rates for incomes,population,and trends in food preferences. In addition, growth in demand for indian fresh and processed tropical fruits has been strong in recent years and this trend is likely to continue in the medium term. It holds considerable potential for domestic producers and suppliers of tropical fruits in India, and in the case of Indian market, for the overseas suppliers that are able to compete effectively with domestic suppliers . Growth in the fruit production and processing subsectors provides employment opportunities and income generation, and contributes positively to the food security. However, to fully realize this potential requires changes in the value chain, particularly to complete in the quality sensitive international markets. Development of efficient post-harvest handling infrastructure, transportation facilities and the quality of the produce must be priorities, especially for the fruits that are grown for the lucrative export market. Favourable growing conditions permit the production and supply of a large variety of tropical fruits throughtout years.These are consumed not only in the regions where they are grown but throughtout india.Terminal markets in major indian cities receive large quantities of tropical fruits,which are then sold through retail dealers in the other cities an towns.Statistics on consumption of tropical fruits are not available,so estimates need to be derived based on other infrmation available on production and trade. Total apparent consumption of fruits in india was estimated at 39 million tonnes in 2002(the latest year for which consumption data is available),about 8 million tonnes larger than in 1995,with consumption of fresh tropical fruits estimated at 16.3 million tonnes.Annual per capita consumption of fruit was evaluated at 37 kg in 2002,a 12 percent increase over 1995,with major tropical fruits at 13.3kg(bananas at 7.7kg),temperate fruits at 4.2 kg and other fruits at 5.9kg.According to the national sample survey organisation,64 percent of rural house holds reported fresh fruit consumption in 1999 compared to 84 percent of households in urban areas.

Production of selected fruits in India :

Average (2005/2007) Bananas 9718 Mangoes 10108 Oranges 1743 Apples 1205 Lemons and Limes 863 Pineapples 956 Grapes 684 Papayas 470 Pears 127 Peaches and Nectarines 83 Grapefruit and Pomelos 83 Plums 55 Figs 6 Apricots 7 Cherries 4

2008

2009 16820 16820 10680 10800 3070 3070 1470 1470 1420 1420 1310 1300 1150 1200 700 700 200 200 150 150 142 142 80 80 11 11 10 10 8 8

2010

16820 10640 3120 1160 1440 1180 1210 700 200 150 140 80 11 10 8

Although India is one of the world's largest fruit producers, current export volumes remain small. Most of the fruit produced in consumed domestically. Export volumes represent less that 1 percent of total domestic ouput,as well as less than 1 percent of world exports.More than 0 percent of fruit export exports from india are tropical fruits,includin mangoes,guava,pineapples and papayas.India was the second largest exporter of mangoes in the world in 2004,after mexico,shipping 180000 tonnes or 21 percent of the world total.Exports of papaya and pineapple amounted to 3550 tones and 1624 tonnes,respectively .India also imports a sizable quantity of fresh fruits,but these are mainly temperate fruits such as apples and pears,and a large volume of dried fruits such as dates and raisin.Total imports of both fresh and dried fruits reached 216400 tonnes in 2003(the latest year for which a complete set of data on the value of trade exists),and were valued at US$47.1

Foreign exchange earning from fresh and processed fruits (including dried and canned fruit as well as pulps and juices)amounted to US$140 million in 2003,an almost twofold increase(185 percent)over the 1996-1998 average.Mango is the main fruit exported from india.Export earnings from fresh mangoes totalled US$80 million in 2003,which was 61 percent of indias's total fruit exports.About 50 percent of pocessed fruit exports were mango-based products,such as mango plp for juice mixes,and condiments including pickles and chutneys.However,on a comparative basis globally,only 2 percent of the fruit production in india is processed compared to 70 percent in BRAZIL,and 83 percent in MALAYSIA.It is

estimated that about 25to 30 percent of fruit production is wasted due to a lack of postharvest infrastructure.

SPECIFIC MARKET
The quint-essential parameter, that the market are highly price sensitive and competition oriented compels us to concentrate on domestic market for few years before moving on to international market. The product is a mass product, henceforth doesnt have any target audience as such.

COMPETITIVE FACTOR
Because it is a relatively simple process, the production of jams and jellies is not expected to change dramatically. What is apparent is that new flavors will be introduced. Certain vegetable jellies such as pepper and tomato have been marketed successfully. Other, more exotic types including garlic jelly are also appearing on grocery

MICRO-ENVIRONMENTAL INFLUENCE

FACTORS AFFECTING RISE IN DEMAND OF JAM and JELLY IN INDIA

Increase in population Income and prices Consumption habits and preferences:Now with the rapid changes in lifestyle in India, canned juices and beverages are preferred by working people.

y y y y

PROCESS FLOW CHART

QUALITY INSPECTION OF FRUITS

CLEANING, CRUSHING AND CHOPPING

PASTEURIZING THE FRUIT

COOKING THE JAM AND JELLY

FILLING THE JARS

LABELING AND PACKING

TECHNICAL ASPECTS & MANUFACTURING PROCESS

The ingredients must be added in carefully measured amount. According to us, they should be combined in a proper ratio. The ingredients are Pectin, Sugar and an Acid concentration. The ingredients as mentioned earlier shall be added in a good proportionate as too much of pectin will make the spread too hard and too much sugar will make it too sticky.

INSPECTION When the fruit arrives at the plant, it is inspected for quality, using color, ripeness and taste as guides. Fruit that passes inspection is loaded into a funnel-shaped hopper that carries the fruit into pipes for cleaning and crushing.

CLEANING, CRUSHING AND CHOPPING As the fruit travels through the pipes, a gentle water spray clears away surface dirt. Some fruits like citrus and apples may be manually peeled, cored, sliced and diced. Cherries may be soaked and then pitted before being crushed.

PASTEURIZING THE FRUIT The fruit and/or juice continue through another set of pipes to cooking vats. Here, it is heated to just below the boiling point and then immediately chilled to just below freezing. This process pasteurization, prevents spoilage. In case of jelly, the pulp is forced through another set of small openings that holds back seeds and skin and needs to be passed through a filter. The fruit or juice is transferred to refrigerated tanks and then pumped to cooking kettles as needed.

COOKING THE JAM AND JELLY Pre-measured amounts of fruit and/or juice, sugar and pectin are blended in industrial cooking kettles. If additional flavorings are to be included, they are added at the same time. When the mixture reaches the pre-determined thickness and sweetness, it is pumped to filling machines.

10

FILLING THE JARS Presterlized jars move among a conveyer belt as spouts positioned above pour pressured amounts of jam or jelly into them. Metal caps are then vacuumed sealed on top. The process of filling the jars and vacuum packing them forces all of the air out of the jars further insuring the sterility of the product.

LABELING AND PACKAGING The sealed jars are conveyed to a machine that affixes preprinted labels. According to law, these labels must list truthful and specific information about the contents. The jars are than packed into cartons for shipment. Depending on the size of the producers operation, labeling and packaging is either achieved mechanically or manually.

11

DETAIL OF UTILITIES Detail of utilities such like electricity and water plays a vital role in setting up a plant and therefore needs a proper estimation of cost. Likewise the estimated cost of electricity and water as per the prevailing rates per unit multiplied with no. of hours the electricity used will be somewhere about 5 lacs.

DETAIL OF RAW MATERIAL REQUIREMENTS

S.NO. 1 2 3 4 5 6 7 8

PARTICULARS FRUIT SUGAR PECTIN ACIDC COLOUR,ESSENCES PRESERVATIVES JAM SIZE CANS JAR CANS JAR CAPS LABELS AND STICKERS PACKING MATERIALS

AMOUNT PER MONTH

577,500,00

10

TOTAL

577,500,00

ANNUAL REQUIREMENT

6,930,000

12

MARKET

RAPH SHOWING SALES AND PROFITS (In L

FOR 1ST YEAR:
SALES AND PROFITS
140 120 100 AMT 80 60 40 20 0 YEARS SALES PROFIT BEFORE TAX NET PROFIT

FOR 2ND YEAR:

SALES AND PROFITS
160 140 120 100 AMT 80 60 40 20 0 YEARS SALES PROFIT BEFORE TAX NET PROFIT

13

FOR 3RD YEAR:

SALES AND PROFITS
180 160 140 120 AMT 100 80 60 40 20 0 YEARS SALES PROFIT BEFORE TAX NET PROFIT

FOR 4TH YEAR:

SALES AND PROFITS
200 180 160 140 AMT 120 100 80 60 40 20 0 YEARS SALES PROFIT BEFORE TAX NET PROFIT

14

    
375 D Z D Z

   
V G DJ F J M, J G


M grams D

 

 

 

 


T

 
.



 
.

 

S.NO.

PARTICULARS

ESTIMATES OF PRODUCTION & SALES

D J M consisting of 5

DC

C TY( n dozen)

grams


M D

F J M, J

DM

1ST YEAR

2ND YEAR

3RD YEAR

4 YEAR

TH

TM T DC

F H FT

FW

K GD Y

C TY UT

TM T D



D J M consisting of 5

DUCT

7 %

F J M, J

&M

( n lacs)

D J M consisting of 5

grams

s.

 


M D

 

F J M, J

&M



TOTAL IN Rs.

consisting of 5


M grams D

&M

15

126

147

168 9 %

9 %

189 3

FINANCIAL PLAN AND PROJECTION

RESOURCES: CAPITAL COST OF THE PROJECT: (In lacs) Land: Building Machinery Other Fixed Assets Security Deposits Preliminary & Preoperative 8.50 31.20 16.40 3.40 .50 1.49 -----------Total 61.49 ------------

MEANS OF FINANCING:

Promoter s c

tal

140 lacs 60 lacs

Term Loan req re

Total

200 lacs

Employment Potential (nos.) : 80

16

DETALIS OF PROPOSED MACHINERY

Particulars
Refrigrators fruit washing tank

qty
5 3 kg 3 3

amount per pcs amount


3 5

"

T T

97

17

 





kettle





laboratory equipment









Wooden barrels for storage of pulps





all utensils of different sizes &mugs

bottle washing machine

 





mini boilers

to 5

375



 











COST OF LAND

PARTICULARS

APPLICANT

PLOT AREA APPLIED FOR

RATE

AMOUNT

Harinder olanki ikhil Tiku

arvesh Dahiya

TOTAL

TOTAL

820000

18

%%%%&

dd: Registration Charges

%%%%

dd: Conveyance Charges @ %

(U. .)

( ) 1

Distt. Ghaziabad

andita Mathur

rakhar Tomar

750000

%%%%

% '&

%%

Masuri Gulawati Road

rfeen hmed

75

# #

COST OF BUILDING

PARTICULARS ground floor

AMOUNT

FIRST FLOOR

19

888 C7B

TOTAL

888 C

BOUNDARY WALLS

8888 C

TORES

88888

A 3

OFF C

88888B

A4A

43

5@

GU RD ROOM, ROOM TC

RK G,G

RATOR

8888 B

43

5@ 423

CT

&

CK G D V

888887 423 3 3 9
5 5 5

665

W RK G H

43 A

A@ 43 9 5 9

DETAIL OF MISC ASSETS

PARTICULARS

AMOUNT

TOTAL (RS)

39

20

EEEE

FIRE EXTINGUISHERS

EEE

GENERATOR

75

EEE

D EEEEE

AIR CONDITIONERS,FURNITURE,&FIXTURES

COST OF PROJECT AND MEANS OF FINANCING

S.No.

ESTIMATED COST OF PROJECT

In Lacs

Expenses

reliminary & preoperative

TOTAL

3 5

TOTAL PROJECT COST

5 5

MEANS OF FINANCING

romoters contribution

For Capital Cost For Working Capital Through Internal Accriuals

21

QQQQ

TOTAL

5 5

QQQQQ

Working Capital oan

QQQQQ

Term oan From ank

QQQQ I QQQQQQ

Working Capital

QQQQ

A.

Capital cost of roject

3 5

QQQQ I QQQ G S QQQQ

Security deposits

QQQQ P QQQQQ P QQQQQG P

QQQQ

Misc other Assets

39

QQQG

Machinery

97

QQQ

uilding

QQQQ
5

Cost of and

G PS I IP P R U

PI

R P U U G S T P R

PROJECTED PROFITABILITY STATEMENT

S.No. A. PARTICULARS SALES TOTAL 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 9 9

COST OF OPERATION

TOTAL

.9

. 7

. 3

22

G.

NET PROFIT

9.79

F.

PROVISION FOR TAX

.57

3.

E.

PROFIT BEFORE TAX

7. 5

. 5

5.7

.9 .

.55

Depreciation

5.

.59

. 3

3.7

3.53

Interest on Working Capital

.5

Interest on Term oans

3. 9

.95

yy

Insurance

.3

. 5

.3 . .

D.

. 3

SELLING AND ADMINISTRATIVE EXPENSES

C.

GROSS PROFIT(A-B)

33.7

3 .37

. 3

tt

TOTAL

97.39

3.

9. 3

t w t x

.5

. 9

.37 . .

.35

3. 7

p q g

t u

q q h

Other Manufacturing Expenses

r r

Repairs & Maintenance

.3

.53

.75

q q

Electricity, Fuel & ower

3.

3.53

. 3

.5

.97

5.

Wages

. 9

3.33

q h i p g qp

Raw Material

9.3

. 5

9 .

3.95

. 3

3 . 5

ea h r h

eca

`V

`XV

i i h

V Y a d

XWV cba p h p p h g s

IMPLEMENTATION SCHEDULE

The propose project shall be implemente in the following time period.

STAGES
Payment of 25% of Cost of Land Provisional SSI registration & Pollution Board NOC Physical possession of Land & Execution of Legal Documents Approval & Sanctioning of Building Plans Term loans Sanctioning & Disbursement from Financial Institutions for Project Commencement of Factory Building After taking Physical Possession

Need to deposit with Application form. Within 2 months from Allotment letter. Within 2 months from date of Allotment.

Within 1 to 2 months from Allotment of Plot. Within 1 to 1-1/2 month.

Immediately after approval of building plans. Maximum time Within 4 to 5 months from taking over Physical Possession. Within 9 to 10 months from taking over Physical possession. 2 months before Completion of Factory Building. 10th to 11th month from taking over Physical Possession. Within 1 month from completion of Factory Building and before Erection of Machinery. Within 11th month from taking over Physical Possession.

Completion of Factory Building

Placement of orders of Plant & Machinery Erecting & Installation of Machinery

Placement of Technical Manpower & Executives

Commencement Commercial Production

NOTE: Implementation of this project will be within 1 year from the date of allotment.

23

TIME PERIOD

ORGANIZATION AND MANAGEMENT

FORM OF BUSINESS:
The form of our business is partnership. We are six partners :y y y y y

Kriti Makkar Madhu Agarwal Piyush Agarwal Satyam kinno Shalabh Chauhan with equal share in profits and losses.

EQUITY POSITION
The total investment in our business is Rs.61.49lacs out of which Rs.30lacs is invested by each member in equal share or in profit sharing ratio like 1:1:1:1:1:1 or we can say that by investing equal amount of rupees like Rs.5lacs by all partners. The other part of amount of Rs.31.49lacs will be taken by bank as a loan amount. The total amount of our business is including all cost like cost of land, building, machinery, fixed asset, security deposits etc.

KEY PERSONNEL
The key personnel or man power requirement of our business is divided in 2 parts like for factory and administration. The overall summary of manpower requirement is 40 and the cost is Rs.2497200. in factory the total requirement on person is 30 which include:
y y y y y y y y

Factory managers Food chemists Supervisors Mechanic cum boilers operators Skilled workers Semiskilled workers Unskilled workers
Watchman

In administration the total requirement of person is 10.

y y y y

Accounts and stores staff Purchase executive Sales executives Subordinates staff
24

DETAILS OF MANPOWER REQUIREMENT

PARTICULARS NO. SALARY (P.M.) AMOUNT (P.M.) ANNUAL

FACTORY

ADMINISTRATION

Subordinate staff

35

75

SUMMARY

Administrative(Salaries) Total

25

97

Factory(Wages)

59

9 5 5

Sales executives

urchase executive

Accounts and Stores staff

59

Watchman

35

35

Unskilled

Semi skilled

Skilled workers

75

9 5

Mechanic cum boilers operators

Supervisors

Food chemists

75

73

Factory managers

H.R POLICY AND STRATEGY

The H.R policy of our business is based on selection and recruitment. The process of selection and recruitment includes different rounds which make the process easier. Before recruitment every member of organization will be well trained by giving proper training with most modern equipment which make them nimble in their work. Like other organization our business also starts from top level management to lower level. Leaders and top managers create the culture of their business. It is therefore critically important to recruit and retain the right kinds of people at the top in leading and managing your business to high performance. Among other things, people who display the qualities of good leadership in business are expected to be highly ethical and organized and to manage against the detailed objectives of the small business plan, while simultaneously having a grasp of the "big picture," strategic agenda of the business. There are some steps which are providing some career planning like:
y y y y y y y y

Possess a Personal Sense of Mission, Vision and Values Develop a Personal Sense of Responsibility and Accountability Sharpen Personal Skills in Sharing Information and Communicating Effectively Learn How to Identify Gaps and Manage Them Motivation (both monetary e.g. Salary, incentives, bonus etc and non monetary e.g. Appreciation, job enrichment, etc) Well developed schedule for various schemes like VRS, CRS etc Transparent & effective communication between the top level managers and the workers. Implementation of decentralization and delegation of authority.

In our business the other important key for our organization are workers working in our factory like skilled, semi skilled and unskilled workers etc who will be trained in their work with latest machinery and technology. The training will be renewed after every 6 months or whenever required. They will also be motivated by giving proper appraisals in the form of bonus, gifts, schemes etc.

The policy of our business is to employ right person at right job.

26

ASSUMPTIONS AND NOTES

We have assumed the following assumptions for financial working. They are as follows:
y y y

Sales are assumed to be 60%, 70% and 80% of its installed capacity in the first, second and third year respectively. 10% increase in salaries and wages is provided in the subsequent years. Other manufacturing expenses are 5% of Raw Material Consumption.

27

PROPOSED LAYOUT PLAN OF THE FACTORY

GENERATOR TOILETS 5 MTRS OPEN AREA ROOM

DRINKING WATER

RAW MATERIAL STORE 4-1/2 MTRS FINISHED GOODS GODOWN PRODUCTION HALL 5 MTRS

ADMINISTRATION BLOCK

LABORATORY PARKING OPEN AREA SECURITY ROOM 6-1/2METRES TIME OFFICE PURPOSE OF OPEN AREA
FOR LOADING, UNLOADING, INTERNAL ROADS, PARKING, VENTILATION & PLANTATION etc.
28

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