IMPLEMENTATION OF A TAMARIND

TOFFEE MANUFACTURING PLANT

NAYANTHARA THOMAS
AS2012711

OVERVIEW

Introduction
Marketing Feasibility
Technical Feasibility
Production Feasibility
Financial Feasibility
Environmental Feasibility
Socio-economic Feasibility
Conclusion
References

INTRODUCTION
Candy is well known in replacing the energy which
the human body continuously spends through
physical exertion.
Tamarind toffees are prepared from sugar along
with invert sugar, citric acid and tamarind flavor.
Have a glossy shine and a hard texture to it.
Gives a tamarind flavor giving you a sweet fruity
experience.
Easily affordable, children find it a delicacy.
Consumed as a pastime fun product

MARKET
FEASIBILITY

Enterprise

PRODUCT
IDENTIFICATION
: Tamarind Toffee

: Frootola

Product Name
Ingredients

: Sugar, Liquid Glucose, Citric Acid (INS 330),

Permitted Food Colors (INS 122), Nature Identical

Tamarind Flavor
Packaging Material

: Primary packaging- twist and wrap

cellophane

wrapper
Secondary packaging- Low Density Poly Ethylene

(LDPE)
Shelf Life

: 6 months

Product

in Weight of a
No.Available
of
toffees per
toffee
pack

Packets

500

2.0g

Market Survey
According to the primary and secondary data collected,
38% prefer tamarind toffee over other fruit flavored
toffees.
15% prefer toffees over other types of candies
available in the market
Consumer preference for tamarind flavored toffees Consumer preference for different types of sweets available in the market

36%
64%

Tamrind flavored
toffee
Other

40%

35%
10% 15%

Gelatin sweets
Toffees
Lollipops
Chocolates

 Tamarind toffees present in local market

under the well established brand names
are
Daintee
Uswatte
Diana
Available in
Retail shops
Supermarkets
Canteens in schools, universities,
tuition institutes

Market Segmentation
Geographic segmentation
- Urban ,semi-urban & rural customers in the
western province
Demographic segmentation
Age- Especially children around 6-15 yrs. of age
and any other age group
Income level Appeals to all income groups
Psychographic segmentation
Preferences - any one who prefers sweet & a
sour taste
Attitudes
- who seeks alternatives for
strawberry,
orange, lemon, mango, apple
flavored
toffees

Product

Price

Tamarind flavored sweet

toffee
High quality and better
product
500 toffees in 1 packet
Place

Customer based pricing

1 Packet - Rs. 548.84 /=

Marketing Mix

At the beginning in
western province
Available in retail shops,
supermarkets, university
canteens, school
canteens.

Promotion

Promotional campaigns at
exhibitions and
supermarkets
Sales promotion (free
samples)
word of mouth marketing


Strengths

Raw material
availability
High product quality
Low production cost
Less technology is
required

SWOT
Opportunities

ANALYSI
S

Opportunity for
expanding the product
category by introducing
more flavors.
Willingness of
customers to try new
brands

Weaknesses
New brand name to
the market
Absence of strong
distribution
coverage
Lack of trained
employees
Due to child obesity
& health risks
traditional candy is
being replaced by
health foods.
Threats

Competition from well

established brands
Reluctance of retailers to
promote new brands
New small-scale entries
to the industry

TECHNICAL
FEASIBILITY

Location :- Homagama
Factors considered when
selecting a site
Proximity to the raw materials
Homaga
Availability of labor at a fairly low
ma
price
Availability of a good community
(communication, transportation etc.)
Water supply, electricity & proper
road facilities
Located in Colombo
Acceptable climatic conditions ( no
flooding etc.)
district
Nature of the land
Homagama Relatively low population density
Proper drainage system
Moragahahena
Nearness to the target market
road, about 2.0 km
away from

Rest room & wash rooms

for workers

Labeling &
Packing area

Dispatch for
distribution

Finished product
storage

Office

Garden

Major
processing
area

Packing
material
storage

Factory Layout

Wash
room

Compost
bin

Car
park

Storage area
of raw
materials

Reception area of RM

Entrance

Garden

To Homagama

Main road

To Moragahahena

Layout
Walls, floor, doors & other parts of the main
building are designed in accordance with the
requirements for a food processing factory
L shape process layout to prevent cross
contamination
Separate areas for raw materials & finished
product storage
Rest room & wash room facilities for workers

Machineries used

Candy
cooker

Cooling
conveyor

Batch
roller

Candy
former

Wrapping
machine

PRODUCTION
FEASIBILITY

Raw materials & packaging

Raw materials material
Sugar
Liquid glucose
Citric acid (INS 330)
Permitted food colors (INS 122)
Nature identical tamarind flavor

Packaging material
Twist and wrap cellophane wrapper
Low density polyethylene (LDPE)

Production Plan
The plant will be in operation for two shifts a day
with each shift of 8 hours duration
Operates to a production capacity of 50
kilograms per shift
25 working days per month
Product

Productio Productio Total

n target
n
number
of units

Tamarind
toffee

Per day

100

100

Per month

100 x 25

2500

Per annum

2500 x 12

30 000

Manufacturing Process

PLANT & PROCESS FOR MAKING TAMARIND

TOFFEE

Management & Personnel Requirements

Job Title

No of
Employees

Manager(General &
Marketing)

Chemist

Skilled workers

Unskilled workers

Sales staff

Packing workers

Driver

Security guard

Total

12

FINANCIAL
FEASIBILITY

Price estimation of the product

(1kg of the product)
Description
Cost (LKR)
Raw material cost
94.30
Packaging material cost
92.30
Labor cost (Direct
52.00
labor)
Utilities
45.32
Overhead cost
83.20
Total cost
367.12
Profit margin (30%)
110.14
Price without tax
477.25
Tax (15%)
71.58
Price to retailer
548.84
Retailer margin (19.2%)
105.37
Consumer price
654.21
Price of one toffee
1.30

Fixed Capital
Land & Building
= 5 700 000.00
Plant & machinery (LKR)= 1 390 300.00
Other fixed assets (LKR) =
845 000.00
Total (LKR)
= 7 935 300.00
Cost of working capital
Description
Value (LKR)
Salaries & wages
292 500.00
Raw material
235 750.00
Packaging material
230 750.00
Utilities
113 000.00
Contingent expenses
45 500.00
Petty cash
10 000.00
Total
927 500.00
Total working capital (3
2 728 500.00 (2.728 million)
months)
Total Cost of the project 10 663 800.00
(10.663 million)

Payback period
Initial investment for the project (LKR)
800.00

= 10 663

Year

Net cash flow

Cumulative cash
flow

Year 0

(10 663 800.00)

(10 663 800.00)

Year 1

6 464 202.00

(4 199 598.00)

Year 2

6 630 745.00

2 431 147.00

Year 3

6 646 140.00

9 077 287.00

Payback period = 1 Year + 12 4 199 598.00

6 630 745.00
= 1 Year and 8 months

NPV (Net Present Value)

NPV discount rate = 10%

Year

Year 0

Cash flow

Discount
factor

Present
Values

Net Present
Value

(10 663
(10 663
800.00)
800.00)

(10
663 800.00)
1.00

6 464

Year1

202.00

5 882 423.82
(4 781
376.18)

NPV0.91
= 5.706

million
NPV
the 518.00
project 722 141.82
6 630> 0; Accept
5 503
Year2

745.00

IRR (Internal Rate of Return)

A
B
a

10%
20%
5 706

(a/a-b)

746.82

b
IRR

3 131 462.91
32.2%

IRR = 32.2%
Cost of capital(10%) < IRR ; Accept the project

Return on Investment (ROI)

Year 1
Net profit
6 413
820.00
Total
10 663
investmen 800.00
t
ROI

0.601

Return on investment = 60.1%

ENVIRONMENTAL
FEASIBILITY

Environmental laws & regulations

related to the business

Solid waste management

National Policy on Solid Waste Management

Waste management
Waste management regulations 2008 (under The
National Environmental act no. 47 of 1980)

Land usage
National land use policy of Sri Lanka

Environmental problems &

plans to address them
Disposing organic wastes
- Compost production
Other solid waste
- through the municipal council
Disposing non-decomposable wastes
-Reducing the generation as much as
possible
-Collecting and supplying to recycling
centers

SOCIO-ECONOMIC
FEASIBILITY

 For consumers
Offer quality products
Reasonable price
For environment
Manage waste effectively
Maintain an eco-friendly environment
For employees

Keep a friendly working environment

Provides satisfactory wages

Ensure workers safety & welfare

For

society
Create job opportunities
Support social activities
Help for the economical growth rate of the
country

CONCLUSION
Implementing a Tamarind toffee
manufacturing plant is a commercially
feasible project in many areas including
Market, Technical, Production,
Financial, Environmental & Socioeconomical aspects.

REFERENCES
https://www.google.lk/?gfe_rd=cr&ei=uqpnV4TiFoHD8
Af8xoGIBA&gws_rd=ssl#q=average+no+of+schools+in+w
estern+province
https://
www.alibaba.com/showroom/candy-cooling-table.html
http://www.yixunmachines.com/news/236.html
http://www.uswatteconfectionery.com/fruit-candy
http://www.euromonitor.com/sugar-confectionery
http://www.eiriindia.org/mfg_hard_boiled_candle.html
https://www.surveymonkey.com/mp/marketing-survey-t
emplates
/
file:///C:/Users/admin/Downloads/Toffee%20Candy%20
&%
20Milk%20Chocolate.pdf
http://www.primaryinfo.com/projects/toffee.htm

THANK YOU