Lord’s Foods

Project Report

Project at Gatti Industrial Area, Distt. Kathua, Jammu and

Kashmir

1
Contents
I. Introduction:...........................................................................................................................8
II. Need and importance of the project:.......................................................................10
III. Scenario of Frozen Food Industry:...........................................................................13
IV. Market Analysis................................................................................................................18
V. Opportunity for growth of Plastic Pipe Industry in Private Sector............22
VI. Background of the Promoters:...................................................................................29
VII. Production Process:........................................................................................................36
VIII. Marketing and Selling Arrangements:.................................................................41
IX. Project Particulars:.........................................................................................................42
X. SWOT Analysis:.................................................................................................................48
XI. Cost of production and Profitability:......................................................................51

2
Applicant Name Lord’s Foods
Date of 08.07.2024
Incorporation
Nature of Activity Manufacturing of Frozen food products
Sector Manufacturing
Constitution Proprietorship firm
Pan No. AQJPS0669J
CIN No. NA
Registered Office 75, Canal Colony Mcleod Road, Amritsar
Address
Project Location 4th Lane, Gatti Industrial Area,
Distt. Kathua, Jammu and Kashmir

About the Firm The firm is proposing,g to set up a

manufacturing facility to manufacture of
Frozen food products.

Proprietor Mr. Sandeep Singh

Proposed Project The land has already been purchased.
Growth and Demand: The market has been
Key Highlights of experiencing steady growth driven by
Project increasing consumer preference for convenient
and time-saving food options.

Product Diversity: A wide range of frozen

food products are available, including ready
meals, vegetables, fruits, seafood, meat,
bakery items, and desserts, catering to various
consumer tastes and preferences.

Convenience and Time-Saving: Frozen foods

3
offer convenience as they require minimal
preparation time, making them popular
among busy consumers and households.

Technological Advancements: Continuous

innovations in freezing technologies have
improved product quality, texture, and
nutritional value, enhancing consumer
acceptance.

Health and Nutrition: There is a growing

demand for healthier frozen food options,
leading to innovations in low-sodium, organic,
gluten-free, and plant-based frozen products.

Retail and Distribution Channels: Frozen

foods are widely available through
supermarkets, hypermarkets, convenience
stores, online retailers, and specialized frozen
food stores, ensuring broad accessibility to
consumers.

Global Market Reach: The market is global,

with significant growth observed in both
developed and developing regions, driven by
urbanization, changing lifestyles, and
increasing disposable incomes.

Food Safety and Quality Standards: Strict

adherence to food safety regulations and
quality standards (e.g., FDA, ISO) ensures the

4
 safety and integrity of frozen food products,
fostering consumer trust.

Sustainability: Increasing focus on

sustainable practices in sourcing, production,
and packaging of frozen foods, addressing
environmental concerns and consumer
preferences.

Marketing and Branding: Effective marketing

strategies, including product innovation,
promotional campaigns, and partnerships, play
a crucial role in brand differentiation and
market penetration.

Incentives in the  100 % on New DG Set ranging from 10KW

Jammu and to 2000KW with capping of Rs. 40 lac in
Kashmir Industrial zone A and Rs. 45 lac in Zone B
Policy  100% exemption on land transactions in
Government Industrial Estates, Including
lease deed and mortgage deed
 30% on incurred charges Max on
procuring Quality Certification like ISO,
ISI, BIS, FPO, BEE, AGMARK, ECOMARK,
ZED Rating etc, up to 2 Lakhs certified by
CA
 25% on cost of Automation Max on
automation/ software/hardware /BPR
through computers/IT/Online Pollution
Control Devices, up to 2 Lakhs if the same

5
 has not been claimed under CII or Similar
Schemes
 60% on Pollution Control Devices Max up
to 50 Lakhs if the same has not been
claimed under CII or Similar Scheme
 50% of expenses incurred on expenditure
incurred on Installation of new equipment
of rainwater harvesting, wastewater
recycling, zero discharge processing, solid
waste management
 Capital Investment Incentive at the rate of
50% on investment maximum upto
Rs.7.50 cr
 Capital Interest subvention at the rate of
6% for maximum 7 years on loan amount
up to Rs.500.00 cr for investment
 GSTL incentive equal to 100% of the
Gross GST for 10 years maximum upto
300% 300% of the investment in Plant &
Machinery.

Net Realizable As per valuation report.

Value

Total Estimate Sr.No. Cost Of Project Rs. In

Project Cost Lakhs

1. Cost of Land 48.00
2. Machinery 1575.00
3. Building & Civil Works 350.00

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 4. Pre-operative expenses 25.00
5. Working Capital 80.00
Total Cost of Project 2078.00
Means of Finance
Sr. No. Particulars Amount
(Rs. In
Lakhs)
1. Term Loan-Machinery 1175.00
2. Working Capital Limit 250.00
3. Working Capital Limit 50.00
4. Own Contribution 603.00
Total 2078.00
Primary Security: Machinery and Building
including Civil Work.
Target of The project will start commercial production in
Completion Oct 2025.
Present Status of Land has already been purchased and the
Project following approvals has been received:
1. CLU
2. Building Plan Sanction
3. Pre-Electricity connection
4. Goods and Service Tax Registration

I. Introduction:

The Indian frozen food market has been experiencing

significant growth in recent years, driven by changing
lifestyles, increasing awareness of food safety and quality,
and the expansion of retail infrastructure and e-commerce.

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The market size reached INR 167.3 Billion in 2023 and is
expected to reach INR 561.6 Billion by 2032.
Key drivers of the industry's growth include:
 Changing Lifestyles and Busy Schedules: As more
people move to cities for better job opportunities, they
face longer working hours and busier lives. This has
led to an increased demand for convenient and time-
saving food options, which frozen foods perfectly cater
to.

 Growing Awareness of Food Safety and Quality:

Consumers are becoming more conscious about
foodborne illnesses and healthier eating options.
Frozen foods are often perceived as safer due to their
processing methods and adherence to strict quality
control standards.

 Expansion of Retail Infrastructure and E-

Commerce: The growth of modern retail formats like
supermarkets and hypermarkets, along with the rapid
expansion of e-commerce, has made frozen food
products more accessible and available to consumers
across India.
The Indian frozen food market can be segmented into
various categories, including frozen snacks, vegetables,
fruits, seafood, poultry, meat, and ready-to-eat meals.
Among these, frozen snacks and vegetables are the largest
categories in terms of sales volume, accounting for 65% of
the market.
The frozen food industry in India is expected to witness a
CAGR of 5.3% during the forecast period (2021-2026). The
demand for Indian IQF (Individually Quick Frozen) products
is also growing globally, with the IQF fruits market projected
to reach USD 5.91 billion by 2029.
However, the industry faces challenges such as inadequate
infrastructure for maintaining an unbroken cold chain, high
energy costs, power outages, and transportation difficulties.
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 Consumer perception of freshness and limited knowledge
about the variety and quality of frozen food options can also
hinder adoption.
Despite these challenges, the Indian frozen food industry
holds immense potential for growth, driven by changing
consumer preferences, the increasing popularity of
convenience foods, and the growing demand for nutritious
and balanced frozen meals

II. Need and importance of the project:

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The frozen food industry plays a significant role in modern
food systems and economies worldwide. Here are several
reasons highlighting its need and importance:

 Convenience and Accessibility: The primary benefit

of the frozen food industry is its convenience.
Consumers can access a wide variety of foods year-
round, regardless of seasonal availability. This
convenience is especially valued by busy individuals
and families who may not have the time to prepare
meals from scratch daily.

 Extended Shelf Life: Freezing food extends its shelf

life, preserving its quality and nutritional value for
longer periods compared to fresh food. This helps
reduce food waste both at the consumer level and
throughout the supply chain, contributing to
sustainability efforts.

 Nutritional Value: Frozen foods can retain a high

nutritional value, often better than their fresh
counterparts that might lose nutrients during
transportation and storage. This makes them a
practical choice for maintaining a balanced diet.

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 Safety and Quality: Properly frozen and stored foods
are generally safe from contamination and bacterial
growth, which can occur more readily in fresh foods if
not handled correctly. This aspect is crucial for food
safety standards and public health.

 Cost-Effectiveness: Frozen foods can be more

affordable than fresh foods, particularly when
considering out-of-season produce or specialty items
that may be expensive when fresh. This affordability
makes nutritious options more accessible to a broader
population.

 Global Trade and Market Potential: The frozen food

industry supports global trade by enabling the
transportation and distribution of food products across
borders. This contributes to economic growth and
diversification in both developed and developing
countries.

 Job Creation and Economic Impact: Establishing

and maintaining a frozen food industry creates
employment opportunities across various sectors,
including agriculture, manufacturing, transportation,
and retail. This industry also supports related

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 industries such as packaging and equipment
manufacturing.

 Innovation and Product Development: The frozen

food industry continually innovates to meet consumer
demands for healthier options, convenience, and taste.
This includes developing new freezing techniques,
packaging innovations, and expanding product lines to
cater to diverse dietary preferences and trends.

 Food Security: By providing a reliable source of food

year-round, the frozen food industry contributes to
food security, especially in regions where fresh food
availability is limited due to climatic or logistical
challenges.

 Environmental Considerations: While there are

environmental considerations such as energy use in
freezing processes and packaging waste, the frozen
food industry can also contribute positively by
reducing overall food waste and its associated
environmental impacts.

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III. Scenario of Frozen Food Industry:

Global Scenario:

The global frozen food market has been experiencing

significant growth in recent years, driven by changing
consumer preferences, the increasing popularity of
convenience foods, and the growing demand for
nutritious and balanced frozen meals. Here are some key
highlights of the global frozen food industry:

 Market Size and Growth

 The global frozen food market size was valued at

USD 397.3 billion in 2022 and is projected to
reach USD 607.2 billion by 2032, growing at
a CAGR of 4.3% from 2022 to 2032.

 The global frozen foods market was valued at

USD 244.8 billion in 2021 and is expected to
reach USD 352.15 billion by 2029, registering a
CAGR of 4.65% from 2022 to 2029.

 The global frozen foods market size was USD

284.2 billion in 2023 and is projected to
grow from USD 363.7 billion in 2028, at a CAGR
of 5.1%.

 Regional Analysis:

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  Europe dominates the frozen foods market due to
an increase in demand caused by the COVID-19
pandemic and the region's population growth,
rapid urbanization, and increased customer
awareness of the benefits of frozen food.

 Asia-Pacific is expected to see significant growth

in the frozen foods market due to the rise in the
trend of ready-to-eat food among the working-
class population and the substantial increase in
demand for frozen food due to the decrease in
time for preparing and cooking.

 The U.S., Germany, China, the U.K., and France

are the top 5 demand countries for frozen foods.

 Brazil holds around 43% share, the largest

market share for frozen foods in Latin America.

Indian Scenario:

The Indian frozen food industry has been experiencing

significant growth in recent years, driven by changing
consumer preferences, increasing urbanization, and the
growing demand for convenient and ready-to-eat food
options. Here are some key highlights of the Indian frozen
food industry:

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 Market Size:

 The Indian frozen food market size reached INR

144.3 Billion in 2022 and is expected to reach
INR 353.3 Billion by 2028, growing at a CAGR of
16% during 2023-2028.

 The Indian frozen food market shall reach US$

4.28 Billion by 2028, growing at a CAGR of
17.46% from 2022 to 2028.

 The Indian frozen food market was valued at USD

1.77 billion in 2023 and is anticipated to project
robust growth in the forecast period with a CAGR
of 16.3% through 2029.

 Market Segmentation:
The Indian frozen food market can be segmented based
on product type and categories:

 Product Type: Frozen Vegetable Snacks, Frozen

Meat Products, Frozen Fruits and Vegetables,
Fruit & Vegetables, Non-Veg (Meat &
Fish/Seafood) Products (Chicken, Fish, Mutton,
Beef, Pork, Others), Potatoes (French Fries, Tikki,
Potato Wedges, Potato Bites, Smileys, Others),
Frozen Bakery Products (Biscuit & Cookies,
Bread & Pizza Dough, Rolls & Pastry, Others),
Ready Meals, Soup, and Others

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  Categories: Staple Foods, Dairy Products and
Alternatives, Snacks, Cooking Ingredients, and
Meals

 Drivers:

 Increasing demand for convenient and processed

foods
 Growing urbanization and changing lifestyles
 Rising disposable incomes and middle-class
population
 Improved distribution channels and cold storage
infrastructure

 Challenges:

 High dependence on agricultural produce and

seasonal fluctuations
 Limited awareness about frozen foods in rural
areas
 Competition from traditional and fresh food
options
 Stringent regulations and food safety concerns

 Key Players:

Some of the major players in the Indian frozen food

industry include:

 McCain Foods

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 Nestle India
 Hindustan Unilever Limited (HUL)
 ITC Limited
 Mother Dairy Fruit & Vegetable Pvt. Ltd.

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IV. Market Analysis

The frozen food industry in India has been evolving rapidly,

driven by changing lifestyles, urbanization, increasing
disposable incomes, and growing awareness of convenience
foods. Here's a detailed market analysis of the frozen food
industry in India:

Market Size and Growth

 Current Market Size: The frozen food market in India

was valued at approximately USD 1.1 billion in 2020.

 Projected Growth: The market is expected to grow at

a robust CAGR of around 17% from 2021 to 2026,
reaching a projected value of USD 3.1 billion by the
end of the forecast period.

 Segmentation:

 Frozen Vegetables: Largest segment due to their

nutritional value, convenience, and widespread
use in Indian cuisine.

 Frozen Snacks: Increasing popularity of ready-to

eat options like samosas, spring rolls, and
cutlets.

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  Frozen Ready Meals: Convenience-driven
growth, including Indian meal options and global
cuisines like pizzas and pasta.

Consumer Trends

 Urbanization and Convenience: Concentration of

growth in urban areas where consumers seek
convenient meal solutions amid busy lifestyles.

 Health Consciousness: Rising demand for healthier

frozen options, including low-fat, low-sodium, and
organic products.

 Premiumization: Increasing interest in gourmet and

high-quality frozen food products, especially among
affluent urban consumers.

 E-commerce: Growing trend of online grocery

shopping, including frozen foods, due to convenience,
wider product availability, and pandemic-induced
shifts towards digital shopping.

Technological and Regulatory Environment

 Technological Innovations: Adoption of advanced

freezing technologies such as Individual Quick

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 Freezing (IQF) to maintain product quality and
freshness.

 Packaging Innovations: Use of sustainable packaging

solutions to address environmental concerns and meet
regulatory requirements set by FSSAI (Food Safety and
Standards Authority of India).

 Regulatory Landscape: Compliance with food safety

standards and labeling regulations enforced by FSSAI
and other regulatory bodies.

Distribution and Retail Landscape

 Retail Channels: Dominated by supermarkets,

hypermarkets, and organized retail chains due to their
better storage facilities and ability to cater to a wide
range of consumers.

 Online Retail: Increasing penetration of e-commerce

platforms offering frozen foods, especially in urban
areas where consumers value convenience and time-
saving options.

Challenges and Opportunities

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  Challenges: Infrastructure constraints for maintaining
the cold chain across diverse climatic regions,
logistical challenges in distribution, and consumer
perceptions about frozen food quality.

 Opportunities: Expansion into tier II and III cities,

innovation in product offerings to cater to regional
tastes and preferences, and partnerships with local
farmers for sourcing fresh and high-quality
ingredients.

COVID-19 Impact

 Short-term Disruption: Initial disruptions in supply

chain and logistics during lockdowns, leading to
temporary shortages and shifts in consumer
purchasing behavior towards packaged and frozen
foods.

 Long-term Adaptation: Increased awareness about

hygiene, food safety, and shelf-life extension, boosting
consumer confidence and demand for frozen food
products.

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V. Opportunity for growth of Plastic Pipe Industry in
Private Sector

Policies of the Government:

In India, the frozen food industry operates within a

regulatory framework overseen primarily by the Food Safety
and Standards Authority of India (FSSAI), along with various
other government policies and regulations that impact its
operations. Here are some key policies and regulations
relevant to the frozen food industry in India:

Food Safety and Standards Act, 2006

The Food Safety and Standards Act, 2006, and its

subsequent amendments establish the legal framework for
ensuring food safety and regulating the production,
processing, distribution, and sale of food products in India.
Key provisions include:

 Licensing and Registration: Mandates that food

businesses, including those involved in
manufacturing, processing, storing, and
distributing frozen foods, must obtain licenses or
registrations from FSSAI.

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  Food Safety Standards: Sets out standards for
various food products, including frozen foods, to
ensure their safety, quality, and hygiene.

 Labeling Requirements: Specifies labeling

requirements, including mandatory information such
as ingredients, nutritional information, allergen
declarations, and storage instructions.

Cold Chain Development Scheme (CCDS)

The Cold Chain Development Scheme (CCDS) is a

government initiative aimed at promoting integrated cold
chain infrastructure across the country. It includes
financial assistance for setting up cold storage facilities,
refrigerated transport, and other infrastructure essential for
maintaining the cold chain integrity of perishable foods,
including frozen foods.

National Food Processing Policy

The National Food Processing Policy aims to promote

investments in the food processing sector, including frozen
foods, by providing incentives and support for infrastructure
development, technology upgradation, and skill
development.

Foreign Direct Investment (FDI) Policy

The FDI policy of India allows for foreign investment in the

food processing sector, which includes frozen food

23
production and distribution. Foreign investors are permitted
to invest up to 100% in the food processing sector, subject to
certain conditions and regulations.

Make in India Initiative

The Make in India initiative encourages domestic

manufacturing and production across various sectors,
including food processing. It aims to boost local production,
reduce import dependency, and promote exports, thereby
fostering growth opportunities for the frozen food industry.

Goods and Services Tax (GST)

The implementation of GST has simplified the tax structure

for the food processing and frozen food industries by
replacing multiple indirect taxes with a unified tax regime.
This has streamlined logistics and distribution operations,
benefiting businesses involved in the production and
distribution of frozen foods.

Export Promotion Schemes

Various export promotion schemes, such as the

Merchandise Exports from India Scheme (MEIS) and the
Agricultural and Processed Food Products Export
Development Authority (APEDA) schemes, provide incentives
and support for promoting exports of processed and frozen
food products from India to international markets.

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Challenges and Opportunities

While these policies provide a supportive framework for the

frozen food industry, challenges such as infrastructure
constraints, logistics issues, and regulatory compliance
remain significant. However, the growing demand for
convenience foods, increasing urbanization, and rising
disposable incomes present ample opportunities for growth
and expansion within the sector.

Jammu and Kashmir Industrial Policy:

The Jammu and Kashmir Industrial Policy 2021 is aimed at

creating a conducive ecosystem for industry, which attracts
investments in focus sectors leading to sustainable,
equitable, environment friendly and balanced industrial
development thereby creating employment opportunities for
the youth, income generation and overall development of the
region.

Objectives of the policy:

The new Jammu & Kashmir Industrial Policy 2021 aims:

 To attract substantial investment across focus sectors

 Creation of jobs for the youth
 Promoting development of backward regions
 Maximizing growth opportunities by optimum
utilization of the available resources
 Creating backward and forward linkages

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  Harnessing the talents and skills of the people and
ushering prosperity in every household
 To nurture existing industries

Duration of the policy:

 Jammu & Kashmir Industrial Policy 2021 shall be

valid for a period of 10 years from the 01.04.2021.
 The Government of Jammu & Kashmir can extend the
time period of the policy.
 The Government of Jammu & Kashmir can amend or
clarify to remove difficulty in implementation of the
policy.
 Minimum Regulation- Maximum Facilitation and
Digital Interventions:
 Government would act as facilitator rather than the
regulator.
 All UT related services, consents and permissions
required to set up and operate an industry in Jammu
& Kashmir shall be provided through Single Window
Portal.
 Strengthening Single Window Cell by involving the
concerned department wherever necessary with
respect to investments as well as concern and issues
that the industry may have encountered.
 Directorate of Industries, Jammu & Kashmir will
coordinate with Industrial Associations for Ease of
Doing Business initiatives.

26
  Implementation of Department for Promotion of
Industry and Internal Trade (DPIIT) District and State
level reforms.
 Government of Jammu & Kashmir would opt for Block
chain, Internet of Things, Artificial Intelligence,
Robotics and other technologies for Ease of
Administration and Governance.

Package of Incentives:

 100 % on New DG Set ranging from 10KW to 2000KW

with capping of Rs. 40 lac in zone A and Rs. 45 lac in
Zone B
 100% exemption on land transactions in Government
Industrial Estates, Including lease deed and mortgage
deed
 30% on incurred charges Max on procuring Quality
Certification like ISO, ISI, BIS, FPO, BEE, AGMARK,
ECOMARK, ZED Rating etc, up to 2 Lakhs certified by
CA
 25% on cost of Automation Max on automation/
software/hardware /BPR through
computers/IT/Online Pollution Control Devices, up to
2 Lakhs if the same has not been claimed under CII or
Similar Schemes
 60% on Pollution Control Devices Max up to 50 Lakhs
if the same has not been claimed under CII or Similar
Scheme

27
 50% of expenses incurred on expenditure incurred on
Installation of new equipment of rainwater harvesting,
wastewater recycling, zero discharge processing, solid
waste management
 Capital Investment Incentive at the rate of 50% on
investment maximum upto Rs.7.50 cr
 Capital Interest subvention at the rate of 6% for
maximum 7 years on loan amount up to Rs.500.00 cr
for investment
 GSTL incentive equal to 100% of the Gross GST for 10
years maximum upto 300%.

28
VI. Background of the Promoters:

Mr. Sandeep Singh is the proprietor of the firm. Mr.

Sandeep Singh have extremely vast and diversified
experience in different fields like manufacturing business,
trading business of pharmaceutical products ,marketing
business, property business ,construction business, hotel
business, hospitality and health care services with a
tradition of commitment to excellence and personal
attention towards the company goals.

He is also the Managing Director in Soh Med Care Pvt Ltd

and Agrimax Distillery limited. He is commerce graduate
and diploma holder of hospital management and also a MBA
Degree holder. He has an experience of more than 20 years
in management of hospitality. He started his career from
Amandeep Hospital, G.T. Road, Amritsar by giving his
management skills, on that time he was solely responsible
for Management of Amandeep Hospital and one of the Board
members of Amandeep Group which includes Amandeep
Hospital, Sohrab X-ray, Shabaz Medicos, Sajda Builders,
Navya Diagnostics. In 2008 he separated his business with
Amandeep Group and started his own Empire by taking

29
management of Karam Singh Hospital, Amritsar. After
successfully running the business of Karam Singh Hospital
for 5 years, he established his own hospital by incorporated
Private Limited Company in the name of SOH MED CARE
PVT LTD and starts his first unit of company i.e. PULSE
HOSPITAL, Maqboolpura chowk, Mehta Road, Amritsar.
Since 2013 he is running the hospital to shine the basic
healthcare facilities in the form of primary healthcare
services to patients. He is managing the hospital
management, hotel business and pharmaceutical business
aims to provide much higher standard facilities to the
society.

Mr. Sahil Sachdeva is the Chief Financial Officer of the firm

responsible for taking key decisions and managing day
to day operations of the firm. He is a Chartered
Accountant by profession and Post Graduate in
Commerce. He is a member of ICAI and has
experience of more than 12 years in the field of financial
management, and has wide knowledge in taxation and
Financial management of Public and Private Sectors
industries. He started his career from Unicorn
Investment Solution Ltd, by giving his investment
Consultancy Services making portfolios in different
sectors of the economy, after that he joined renowned
financial consultant firm to gain good experience in
finance, taxation and auditing practice of corporate, public

30
 sectors and banks, and in 2013 he started his own
practice of financial consultancy in different sectors like
Hospital, Banks, financial institutions, Colleges, Hotels,
Construction Companies, manufacturing and trading
firms. He has vide knowledge about industry towards
different fields like manufacturing business, trading
business of pharmaceutical products ,marketing
business, property business ,construction business, hotel
business, hospitality and health care services He is
also Executive board members of Khalsa College,
Amritsar and act as key note speaker in various economy
issues. He is CFO of parent company Soh med care private
limited from last 5 years and Director of Agrimax Dsitillery
Limited, He aims to work in a dynamic environment that
provides a vide spectrum of experience and exposure, to
implement a dynamic and versatile portfolio of skills at
work place and to serve the organization. He has
exposure in Statutory/Internal Auditor of Industrial
star Export Houses in Amritsar, Karnal and Delhi of public
limited companies.

Dr Sohrab Singh started his operation by providing services

to Soh Med Care Pvt Ltd) in the year 2017 as a Director of
the Company, in Soh Med Care Pvt. Ltd. He have a
responsibility to manage the object of the company to
management of Hospitals, Hotels, Manufacturing units,
Trading business and export house, Construction and
Educational centre under the name of Company.

31
 Mr. Sohrab Singh Kamboj is accountable for taking
marketing decisions of the firm and expansions of firm’s
goals and to put up the idea to accomplishment of
firm’s vision.

Mrs. Surabhi Mahajan W/o Mr. Sahil Sachdeva, is also

one of the key person in the firm. She is responsible for taking
various HR related decisions of the firm. She is
commerce graduate and CA intermediate degree holder.
She has an experience of more than 11 years in
management of Punjab State power Corporation ltd.
After that she is a businesswoman and being a partner in
Financial Management Consultancy firm. She has
knowledge about industry towards different fields like
Cost management, product development, marketing
strategy.

INTRODUCTION ABOUT GROUP COMPANIES

M/s Soh Med Care Pvt. Ltd. was incorporated on

27.11.2012, started with the object to run Hospitals, Hotels,

Manufacturing units, Trading business and export house,

Construction and Educational centre .The Company started

its first plan by establishment of a hospital unit for

providing health care services in the name and style of M/s

Pulse Hospital situated at Maqboolpur chowk, Mehta Road,

32
 Amritsar. The company’s hospital provide a wide range of

facilities like Orthopedics, Cardiology, gastrology, ENT,

general surgery, emergency case and pharmacy. Hospital

also provides specialized medical facilities by combining medical

expertise with modern equipments for the health care of the

society.

This is a unique venture in the corporate sector with rare

blend of co-operation between doctors, managements,

patients and their well wishers. Hospital motto is to provide

comprehensive medical service in the most congenial,

friendly and reassuring environment under one roof and to

supplement the efforts to provide quality health care

services at a reasonable cost to economically poor sections.

Over the last seven years company’s revenue growth was

15% to 30% annually. The financials are as follows:

33
PARTICULAR F.Y TURNOVE PROFIT TAX PROFI

S R BEFORE AMOUN T

AMOUNT DEPRECIATION T AFTER

,TAX & TAX

EXTRAORDINA

RY ITEMS

Audited 2016 834.94 233.41 60.31 134.11

-17

Audited 2017 1018.97 306.56 74.55 161.55

-18

Audited 2018 1712.82 481.52 103.31 250.01

-19

Audited 2019 1865.52 492.86 98.06 216.40

-20

Audited 2020 2277.80 466.16 86.10 250.64

-21

Audited 2021 3699.26 462.79 87.09 247.29

-22

Audited 2022 4119.50 350.15 41.31 132.63

-23

Present Project:

34
 Now Mr. Sandeep Singh is setting up a project for
manufacturing of frozen food products at Gatti Industrial
Area, Gatti, Kathua, Jammu and Kashmir.

The frozen food market in India is witnessing significant

growth driven by changing lifestyles, increasing disposable
incomes, and urbanization. This project seeks to capitalize
on these trends by offering a diverse range of frozen products
that cater to both retail consumers and foodservice
providers. The facility will be located strategically to ensure
efficient distribution and timely delivery across key
metropolitan and urban centers.

Items to be manufactured:

 French Fries (Classic Salted, Masala Peri Peri)

 Veg Cheese Shots
 Veg Berger Patty
 Potato Nuggets
 Smileys
 Vegan Patties

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VII. Production Process:

The production process of frozen food products involves

several critical steps to ensure food safety, quality retention,
and compliance with regulatory standards. Here’s a detailed
outline of the typical production process for frozen food
products:

Raw Material Procurement and Inspection:

 Sourcing: Procurement of raw materials (fruits,

vegetables, meats, seafood, etc.) from approved
suppliers or farms.
36
  Quality Inspection: Upon arrival, raw materials
undergo thorough inspection for freshness, quality,
and adherence to specifications. This includes
checking for physical defects, microbial contamination,
and pesticide residues.

Preparation and Pre-processing:

 Cleaning and Washing: Raw materials are cleaned

thoroughly to remove dirt, debris, and any surface
contaminants.

 Cutting and Slicing: Depending on the product, raw

materials are cut, sliced, diced, or portioned as per
specific requirements.

 Blanching: Some vegetables and fruits undergo

blanching (brief boiling or steam treatment) to
deactivate enzymes that could cause spoilage and to
preserve color, texture, and nutrients.

Freezing Process:

 Quick Freezing: The pre-processed materials are

rapidly frozen to extremely low temperatures using

37
 techniques such as blast freezing or fluidized bed
freezing.

 Storage: Frozen products are stored in cold rooms or

freezers maintained at temperatures typically ranging
from -18°C to -30°C (-0.4°F to -22°F) to ensure product
stability and longevity.

Packaging:

 Packaging Materials: Selection of appropriate

packaging materials that provide a barrier against
moisture, oxygen, and light to maintain product
quality.

 Packaging Methods: Automated or semi-automated

packaging machines fill and seal products in bags,
trays, or containers. Modified Atmosphere Packaging
(MAP) may be used to extend shelf life by adjusting the
gas composition inside the package.

Quality Control and Assurance:

 Temperature Monitoring: Continuous monitoring of

freezer temperatures to ensure products remain frozen
at optimal conditions during storage and
transportation.

38
  Microbiological Testing: Regular sampling and
testing for microbial contamination to ensure products
meet food safety standards.

 Physical and Chemical Analysis: Assessments for

product texture, color, flavor, and nutritional content
to maintain consistency and quality.

Storage and Distribution:

 Cold Chain Management: Products are transported in

refrigerated trucks or containers to maintain the frozen
state from production to retail or distribution centers.

 Inventory Management: Efficient tracking and

management of inventory to minimize product loss due
to thawing or spoilage.

Thawing and Preparation:

 Consumer Preparation: Instructions provided on

packaging for safe thawing and cooking methods,
depending on the type of product (e.g., microwave,
stovetop, oven).

Regulatory Compliance:

39
  Food Safety Regulations: Adherence to local and
international food safety regulations (e.g., HACCP,
FDA, FSSAI) throughout the production process to
ensure consumer safety and compliance.

Continuous Improvement and Innovation:

 Research and Development: Investment in R&D to

improve freezing techniques, packaging efficiency, and
product innovation to meet changing consumer
preferences and market demands.

Key Considerations:

 Hygiene and Sanitation: Strict adherence to hygiene

practices and sanitation protocols to prevent cross-
contamination and ensure product safety.

 Traceability: Implementation of systems to trace raw

materials from farm to fork to enhance transparency
and accountability in the supply chain.

Process Flow Chart:

40
VIII. Marketing and Selling Arrangements:

Marketing and selling arrangements for a frozen food plant

involve specific strategies and considerations tailored to the

41
 unique challenges and opportunities within the frozen food
industry. The firm will setup Distribution channels, Retails
relationships and various online channels for sale of its
products.

IX. Project Particulars:

Production Capacity:

The installed capacity will be 7 tons per day. The unit will
work at 40% capacity in the first year and will increase to
50% in the second year and gradually reached to 70% from
6th year onwards.

Land and Building:

The promoter have 7 kanal 15 Marla of land for the project.

The cost of Land is about Rs.48.00 lakhs and estimated cost
of land development is Rs.200.00 lakhs which includes
factory shed, transformer room, other Civil work, Water
tank, compound wall and fencing and other buildings such
as office building, Laboratory, Labour quarters, security
room etc that have to be built in the premises.

Plant and Machinery:

The total cost of Plant and Machinery will be Rs.16.00 Cr.

Working Capital

42
The production will operate in 2 shifts a day. The working
capital requirements has been estimated on a realistic
basis as below:

Particulars Rs. (in lakhs)

Stock 30.00
Book Debts 50.00
Working Capital 80.00

Contingencies:

The implementation of the project will start immediately and

will be completed within 6 months. The firm expects to
implement the project in time within budgeted costs and
avoid cost escalation. The firm have tied up with machinery
suppliers for supply of Plant and Machinery and we don't
expect any cost escalations in this regard. All provision for
contingencies is included in project cost.

Total Cost of the Project:

Sr.No. Cost Of Project Rs. In Lakhs

1. Cost of Land 48.00
2. Shed & Civil Works 350.00
3. Plant & Machinery 1575.00
4. Pre-operative expenses 25.00
5. Working Capital 80.00
Total Cost of Project 2078.00

Means of Finance:

Sr. No. Particulars (Rs. In Lakhs)

1. Term Loan-Machinery 1175.00
2. Term Loan-Building 250.00
3. Working Capital Limit 50.00

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 4. Own Contribution 603.00
Total 2078.00

Power requirements:

The power requirement for a frozen food unit, similar to

water usage, can vary significantly based on several factors
including the size of the facility, the types of products being
processed, the scale of production, and the specific
equipment and processes involved. Here's a general
overview of the power requirements typically associated with a
frozen food unit:

Refrigeration: Refrigeration is one of the major consumers of

power in a frozen food unit. The power requirement depends
on the size and number of refrigeration units (such as blast
freezers, cold storage rooms, and refrigerated trucks), the
temperature requirements of the frozen products, and the
efficiency of the refrigeration systems. It's not uncommon
for refrigeration to account for a significant portion of the total
power consumption in such facilities.

Processing Equipment: Power is also required for various

processing equipment used in frozen food production, such
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 as conveyors, mixers, blanchers, fryers, ovens, and
packaging machinery. The power demand varies depending
on the type and capacity of the equipment used.

Steam Generation: If the facility uses steam for cooking or

other processes, power will be required for boilers to
generate steam. The amount of power needed depends on the
steam production capacity and the efficiency of the boiler
system.

Utilities and Support Systems: Power is necessary for

general utilities such as lighting, heating, ventilation, air
conditioning (HVAC), and water pumping systems. These
systems contribute to the overall power consumption of the
facility.

Automation and Control Systems: Modern frozen food units

often utilize automation and control systems to optimize
production processes and ensure product quality. These
systems require electrical power for operation.

Miscellaneous Loads: There are various other miscellaneous

loads such as office equipment, employee facilities, and

45
 ancillary systems that also contribute to the total power
requirement.

Schedule of Implementation:

A brief list of activities from the stage of preparation of

project report to the stage of commercial production with the
approximate time for each stage is furnished in below.
Accordingly, the unit will start commercial production from
Oct-2025 onwards.

1. Acquisition of land Already Acquired

2. Civil Construction Aug-2024 to
September-2024
3. Placement of orders for Sept-2024
Machinery
4. Delivery at Site Jan-2025 to-June
2025
5. Arrangement for Power Aug-2024 to
September-2024
6. Arrangement for Water Aug-2024
7. Erection of Equipment Jan-2025 to-June
2025
8. Procurement of Raw materials, - July-2025
Selection of Key Personnel
9. Commissioning of Plant and Aug-2025
Trial production
10 Commercial Production Oct-2025
.

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Projected Employment Details:

A list of estimated manpower required for smooth operations

of the unit and their annual remuneration is detailed as
follows:

Category Monthly No. of Salary

Salary Persons (Rs.)
(Rs.)
Manager (Production & 75000 1 75000
Office)
Accounts Officer 40000 2 80000
Engineering Staff 40000 3 120000
Shift in Charge 30000 3 90000
Admin Staff 30000 3 90000
Store Keeper 15000 2 30000
Time Keener & Security 15000 4 60000
Office Assistants 25000 4 100000
Office-Boy 12000 2 24000
Skilled Workers Contract 10 750000
Unskilled Workers Workers 10 250000
16.69
lakhs

Preliminary and pre-operative expenses:

Administration expenses, staff salaries, legal expenses,

documentation charges, professional charges, travelling

47
 expenses, postage & telephone, marketing expenses etc.,
during the implementation and pre-operative period is
estimated at Rs.25 Lakhs.

X. SWOT Analysis:

Strengths:

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  Increasing Urbanization: Rapid urbanization and
busy lifestyles in urban areas drive demand for
convenient food options like frozen foods.
 Diverse Product Range: Wide variety of frozen food
products available, catering to diverse tastes and
preferences of Indian consumers.
 Improved Cold Chain Infrastructure: Investments in
cold chain logistics and storage facilities enhance the
distribution and availability of frozen foods across the
country.
 Growing Retail Presence: Presence in supermarkets,
hypermarkets, and online platforms increases
accessibility and visibility to consumers.
 Health and Convenience: Rising awareness of health
benefits and convenience associated with frozen foods,
especially for working professionals and nuclear
families.

Weaknesses:

 Perception of Freshness: Some consumers perceive

frozen foods as less fresh compared to fresh produce,
impacting consumer acceptance in certain segments.
 Price Sensitivity: Price sensitivity among Indian
consumers, especially in lower-income segments, can
limit adoption of frozen foods perceived as premium
products.

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  Infrastructure Challenges: Inadequate cold chain
infrastructure in rural areas limits distribution and
availability outside major urban centers.
 Seasonal Variability: Dependency on seasonal
fluctuations in demand and supply of raw materials
can affect production and pricing stability.

Opportunities:

 Health and Wellness Trends: Growing health

consciousness among Indian consumers presents
opportunities for introducing healthier frozen food
options, such as organic and low-sodium products.
 Expansion of Product Offerings: Opportunity to
expand product lines to include traditional Indian
dishes, regional specialties, and innovative recipes that
cater to local tastes.
 E-commerce Growth: Rapid growth of e-commerce
platforms provides new distribution channels for
frozen food products, reaching a wider audience
beyond traditional retail outlets.
 Food Service Industry: Increasing adoption of frozen
foods by hotels, restaurants, and catering services
presents opportunities for bulk sales and institutional
partnerships.

Threats:

50
  Competitive Landscape: Intense competition from
local and international brands offering similar frozen
food products, leading to price wars and margin
pressures.
 Regulatory Challenges: Compliance with stringent
food safety regulations and labeling requirements adds
to operational costs and complexity.
 Perishable Goods: Perceptions of food safety risks
associated with frozen foods, if mishandled during
storage or transportation, can impact trust.
 Consumer Preferences: Shifting consumer
preferences towards fresh and natural foods may pose
challenges to the growth of the frozen food market.

XI. Cost of production and Profitability:

51
A detailed projected profitability statement, for 10 years is
given in Annexure. The statement has been prepared in the
following assumptions:

 The sale price is estimated at Rs. 150000/ton. Ex GST

18%. The selling prices will vary with change in raw-
material prices which has not been considered here.

 The unit will work for 330 days a year on single shifts
basis.

 Provision for employees benefit at 20% for wages and

salaries and for annual increase at 10 to 15% is made.

 Cost of repair and maintenance of assets is taken as

2.00% and insurance cost at 0.35% of an assets
including current assets.

 Depreciation is charged as per the companies act and

adjusted at the rates appropriate under the Income-
Tax Act for Income-Tax purposes.

Balance Sheet:

Projected profitability statement and balance sheet for five

years is enclosed as Annexure.

Coverage Ratios:

Coverage Rations has been calculated in Annexure.

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Projected Profitability Statement:

Kindly refer Annexure for detailed profitability statement.

Assumptions:

 Installed Capacity 5000 Ton per/day

 Selling price for projection is adopted for all periods

uniformly based on the present market rates. As this is
variable compared to raw material and other variables
cost, the same price is adopted for working out
profitability statement and for other purpose.

 GST is worked out at 18%.

 Depreciation is worked out for book purpose under S.L.M.

basis as provided under the Companies Act and for
Income-tax under W.D.V. method as per Income-tax Act,
at the prescribed rates under respective schedule.

 Working capital assessment is worked out under CMA

format.

 The moratorium period will be of 18 months.

 The rate of interest is considered as 9.35% for Term loan

9.50% for working capital.

 The instalment of the term loan will start from January

2026.

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 The interest during the moratorium period upto
31.03.2025 is capitalised.

54