TABLE OF CONTENT

OVERVIEW...........................................................................................................................02
SCOPE OF JAGGERY.........................................................................................................02
POTENTIAL BUYERS.........................................................................................................03
MACHINERY AND EQUIPMENT-SPECIFICATIONS AND COSTS..........................03
WORKFORCE REQUIREMENT.......................................................................................05
SUPPLY CHAIN OF MANUFACTURING PLANT.........................................................05
CERTIFICATIONS TO IMPROVE BRAND IMAGE......................................................06
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Raithula Jattu
Overview
To cut out intermediaries, Raithula Jattu is a Farmer Producer Company (FPC) that was
founded by the union of Farmer groups from 10 villages under DMWS. It was formed in
January 2016. The company makes jaggery and intends to build a jaggery manufacturing
plant to meet its daily production goal of 25 tons which is currently one tonne. NABARD
would offer financial support from 90 lakhs to 1 crore. The farmers will supply the raw
sugarcane used in the plant to make jaggery. It is advised to build a factory with a capacity of
10 tonnes per day rather than the anticipated 25 tonnes per day under the budget given by
NABARD. Although society faces several issues, this paper focuses on end-to-end supply
chain and manufacturing plant-related machinery recommendations.

Considering the anticipated investment, which ranges from 90 lakhs to 1 crore. Instead of the
planned 25 tonnes per day, it is best to establish a small-scale jaggery manufacturing facility
with a capacity of about 10 tonnes per day. The approximate financial requirements for
running a small jaggery manufacturing factory with a daily capacity of 10 tonnes and a
medium-sized manufacturing plant with a daily capacity of 25 tonnes are compared below.

Particulars Small-Scale plant (10 tons/day) Medium-Scale plant (25

tons/day)

Machinery and Equipment 60-70 Lakhs 1.5 – 2 Crore

Raw Materials 3-4 Lakhs (120-150 tons) 8-10 Lakhs (300-375 tons)

Working Capital 20-25 Lakhs 50-60 Lakhs

Miscellaneous 5-6 Lakhs 10-12 Lakhs

Expenses(electricity, supply,
transportation)

Total 85 lakh – 1 Crore 2 Crore +

Scope for Jaggery

Jaggery has a wide range of uses and is used in several industries, including:
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 Food and Beverage Industry: Jaggery is widely used in the food and beverage
industry as a natural sweetener and flavouring agent in various products such as
sweets, desserts, confectionery, baked goods, and beverages.
 Ayurvedic and Pharmaceutical Industry: Jaggery is also used in the Ayurvedic and
pharmaceutical industries for its potential health benefits. It is believed to have
various medicinal properties and is used to prepare many Ayurvedic medicines.
 Distillery and Alcohol Industry: Jaggery is also used in the distillery and alcohol
industry to produce country liquor, also known as "Desi Sharab," made by fermenting
jaggery.
 Chemical Industry: Jaggery is also used in the chemical industry to produce certain
chemicals such as butanol, ethanol, and lactic acid.

Anakapalle in Visakhapatnam district is the biggest producer of jaggery in the state. With
regards to sugarcanes and jaggery, their returns currently are: 
 Sugarcane: Rs 2500/ ton 
 Jaggery (Solid): Rs 4000/ton 
 Jaggery (Refined powder): Rs 5000/ ton 

Making various products with jaggery and marketing them helped the organisation double its profits
in 2019-20. With an investment of 53 lakhs into the initiatives in 2019-20, they earned a fixed profit
of Rs. 1.5 lakhs. 

Potential buyers

Some firms and traders import jaggery from small-scale jaggery producers in South India, including
small-scale jaggery producers. Some of the famous export-oriented firms that export jaggery from
India include:

 Aditi Overseas: An export-oriented firm that exports various agricultural products, including
jaggery.
 SAI International Trading Company: A leading exporter and trader of jaggery and other
agricultural products from India.
 Nisarg Agro Industries: An export-oriented firm that specialises in the export of organic
jaggery and other organic agricultural products.
 Kavisha International: A leading exporter of various food and agricultural products,
including jaggery.
 Gravita India Limited: A diversified global company that deals in various products, including
jaggery.

Apart from these firms, we can approach the firms from the sectors mentioned in the above section,
which require jaggery as a primary ingredient. E.g. the food and beverage industry, ayurvedic and
pharmaceutical industry, distillery and alcohol industry, and chemical industry.

Machinery and Equipment-specifications and Costs:

Machines Specifications for (10 tons/ Specifications for (25 tons/ Cost for Cost for
Required day) day) 10 tons 25 tons
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capacity capacity

Sugarcane Crushing Capacity:10 tons+ Crushing Capacity: 25 tons+ 2-2.5 4-4.5

Crusher Motor Capacity: 15-20 HP
Roller Size: at least 9-10
inches in diameter and 12-14
inches in length
Material of Construction:
high-quality food-grade
stainless steel or iron
Juice Extraction Efficiency:
at least 60-65%
Motor Capacity: 30 HP Lakhs Lakhs
Roller Size: at least 12 inches
in diameter and 14 inches in
length
Material of Construction:
high-quality food-grade
stainless steel or iron
Juice Extraction Efficiency: at
least 70-75%

Juice Heater Heating Capacity: 500-600 Heating Capacity: 1500-2000 75K – 1 1.5-2
litres litres Lakhs Lakhs

Material of Construction: Material of Construction:

high-quality food-grade high-quality food-grade
stainless steel or copper stainless steel or copper

Heating Medium: steam Heating Medium: steam

(steam pressure should be (steam pressure should be
around 2.5 to 3.5 kg/cm2) or around 2.5 to 3.5 kg/cm2) or
hot water hot water

Heating Surface Area: 1.5 to Heating Surface Area: 1.5 to 2

2 square meters per tonne square meters per tonne

Clarification Capacity: 1500-2000 litres Capacity: 4000-5000 litres 50k – 1 1.5

Tank Lakh Lakh-2
Stirring Mechanism: 15-20 Stirring Mechanism: 15-20
Lakhs
rpm rpm

Evaporator Capacity: 1500-2000 litres Capacity: 4000-5000 litres 9-10 35- 40

Heating System: steam-
based
Vacuum System:
Condenser System:
Automation and Control
System: to manage
temperature, pressure, and
vacuum level
Lakhs Lakhs
Heating System: steam-based
Vacuum System:
Condenser System:
Automation and Control
System: to manage
temperature, pressure, and
vacuum level

Crystallization Capacity: at least 2500 litres Capacity: at least 6000 litres 3.5-4 9-10
Tank Lakhs Lakhs
Cooling System: Cooling System:

Stirring System: Stirring System:

Automation and Control Automation and Control

System: temperature, System: temperature, cooling
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cooling water flow rate, and water flow rate, and stirring
stirring speed speed

Jaggery NA NA NA NA
Powder-
Making
Machine

Refining NA NA NA NA
Machine

Workforce Requirement:

An estimated workforce required for a small-scale jaggery manufacturing plant with a production
capacity of 10 tons per day:

 Skilled workers: A small-scale jaggery plant would require skilled workers, such as a plant
manager, a production supervisor, and a quality control supervisor. The number of skilled
workers required may vary depending on the size of the plant, but typically, one to two
skilled workers per shift would be sufficient.
 Semi-skilled workers: Semi-skilled workers like machine operators and maintenance
personnel would also be required to run and maintain the plant. Depending on the level of
automation and machinery used, around 6-8 semi-skilled workers per shift may be required.
 Unskilled workers: Unskilled workers, such as labourers, would be required for tasks such as
loading and unloading of raw materials and finished products, cleaning, and other manual
labour work. The number of unskilled workers required would depend on the plant’s specific
needs, but typically, around 10-12, unskilled workers per shift may be required.

Overall, a small-scale jaggery plant with a production capacity of 10 tons per day may require around
20-25 workers per shift. Again, the exact number of workers required may vary depending on
various factors, and it's always best to consult an expert in the field for a more accurate estimate.

An estimated workforce required for a small-scale jaggery manufacturing plant with a production
capacity of 25 tons per day:

 Skilled workers: A small-scale jaggery plant would require skilled workers, such as a plant
manager, a production supervisor, and a quality control supervisor. The number of skilled
workers required may vary depending on the size of the plant, but typically, two to three
skilled workers per shift would be sufficient.
 Semi-skilled workers: Semi-skilled workers like machine operators and maintenance
personnel would also be required to run and maintain the plant. Depending on the level of
automation and machinery used, around 12-15 semi-skilled workers per shift may be
required.
 Unskilled workers: Unskilled workers, such as labourers, would be required for tasks such as
loading and unloading raw materials and finished products, cleaning, and other manual
labour work. The number of unskilled workers required would depend on the plant’s specific
needs, but typically, around 20-25, unskilled workers per shift may be required.
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Overall, a small-scale jaggery plant with a production capacity of 25 tons per day may require around
35-43 workers per shift. Again, the exact number of workers required may vary depending on
various factors, and it's always best to consult an expert in the field for a more accurate estimate.

Supply Chain of Manufacturing Plant

The supply chain for a small-scale jaggery manufacturing plant with a production capacity of 10 tons
per day can be broken down into several key steps:

 Sourcing of sugarcane: The first step in the supply chain is sourcing sugarcane, the raw
material used to make jaggery. Sugarcane should be sourced from local farmers or
cultivators through contracts or direct purchases.
 Sugarcane transportation: Once the sugarcane is sourced, it must be transported to the
manufacturing plant. This step involves hiring trucks or other vehicles to transport the
sugarcane from the farms to the manufacturing plant.
 Cleaning and cutting: Once the sugarcane arrives at the manufacturing plant, it must be
cleaned and cut into smaller pieces. This step involves using machines such as cane crushers,
which shred the sugarcane into smaller pieces. The machine is designed to crush the
sugarcane to extract the juice collected in a container.
 Juice Filtration: The collected juice must be filtered to remove impurities such as dirt, leaves,
and insects. This is usually done using a juice filter machine. The juice filter machine uses a
mesh or cloth filter to remove the impurities from the juice.
 Juice Heating: The filtered juice is heated to evaporate the water and concentrate the sugar.
This process is done using a juice heater machine. The juice heater machine is designed to
heat the juice to around 100°C.
 Juice Clarification: The concentrated juice is clarified to remove any remaining impurities.
This is usually done using a clarification tank. The clarification tank is a cylindrical tank used
to settle the impurities to the bottom, and the clear juice is drawn off from the top.
 Juice Evaporation: The clarified juice evaporates to concentrate the sugar further. This is
usually done using an evaporator machine. The evaporator machine uses a vacuum to lower
the boiling point of the juice and remove the water, leaving behind a thick syrup.
 Syrup Crystallization: The concentrated syrup is then cooled down and seeded with small
sugar crystals to initiate crystallisation. This is usually done in a crystallisation tank. The
crystallisation tank is designed to promote the growth of sugar crystals by slowly cooling the
syrup and providing a suitable environment for crystal formation.
 Jaggery Formation: Once the sugar crystals have formed, they are separated from the
remaining syrup and molded into jaggery blocks or cubes. This is usually done using a jaggery
molding machine. The jaggery molding machine is designed to press the sugar crystals into
the desired shape and size.
 Jaggery Refining: The jaggery blocks or cubes can be further processed to refine them into a
fine powder. This is usually done using a jaggery refining machine. The jaggery refining
machine is designed for grinding the jaggery blocks or cubes into a fine powder.
 Packaging and labelling: Once the jaggery solidifies, it is removed from the molds and
packaged into bags or boxes for distribution. The packaging may include labelling to indicate
the product name, weight, and other relevant information.
 Distribution and sales: The packaged jaggery is distributed to retailers and wholesalers, who
sell the product to end consumers. Transportation should be hired to deliver the jaggery to
various locations.
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Overall, the supply chain for a small-scale jaggery manufacturing plant involves several steps,
including sourcing sugarcane, transportation, cleaning and cutting, juice extraction, boiling, molding,
packaging and labelling, and distribution and sales. Each step requires careful planning and
execution to ensure the quality and consistency of the final product.

Certification to improve Brand image

ISO 9001: Obtaining an ISO 9001 certification can help demonstrate that the organisation
has a well-defined and documented quality management system and is committed to
continually improving its processes and customer satisfaction. While ISO 9001 is not a food-
specific certification, it can still benefit jaggery producers to obtain it to demonstrate their
commitment to quality and customer satisfaction. An ISO 9001 certification for jaggery
production implements a quality management system that meets the standard’s requirements
and undergoes a certification audit by an accredited certification body. The certification
process typically involves a series of audits to ensure your quality management system is
effectively implemented and maintained.
ISO 22000: Obtaining an ISO 22000 certification can help demonstrate that the organisation
has implemented a comprehensive food safety management system that meets international
standards. This certification covers all aspects of food safety, from sourcing raw materials to
producing, packaging, storing, and distributing food products. For an ISO 22000 certification
for jaggery production, one must implement a food safety management system that meets the
standard’s requirements and undergo a certification audit by an accredited certification body.
The certification process typically involves a series of audits to ensure food safety
management system is effectively implemented and maintained. ISO 22000 is a well-
respected certification in the food industry and can help demonstrate commitment to food
safety to customers and other stakeholders.