55

Project Proposal For Establishment

of
Low cost preservation Unit(New)
Installed Capacity/annum : 50 MT
Promoters Share : 2.00 Lacs
Term Loan : ---
Unsecured Loan : 0.50 Lacs
Name of the Bank :
Proposed Subsidy : 1.00 Lacs
Total Project Cost : 2.50 Lacs
By
M/s -------------------------------------------------------------------------
Submitted to
SHM Govt. of Uttar Pradesh
56
SUBMISSION OF PROJECT BASED PROPOSALS (PHM) Low cost preservation
Unit(New) BY PRIVATE SECTOR UNDER NHM
1. Name of the Project : M/S
2. Type of Activity : Preservation of Fruits, vegetables and other perishable items.
3. Objectives : To provide services of value addition, low cost preservation and
storage of semi-finished Fruits, vegetables and other perishable
items.
4. Location of the Project with
address
a) General Area : Kh. No.:
Vill.:
Teh.:
Distt.:
b) Category of beneficiary :
5. Constitution
(Date of incorporation and
relevant law along with a
copy of articles and
memorandum of association,
bylaws, partnership deed and
registration certificate which
ever is applicable.
Documentary proof regarding
authorized / paid up capital
and promoters contribution)
:
Public Limited
Company/Private Limited
Company/Registered Society
Association/Federation
Producer
Company/Proprietorship Firm
Partnership
concern/Individual person/
Self help group(SHG)
6. Management : Private
7. Brief background of promoter : The Company/firm/association/SHG is promoted by Two
Directors namely Shri Arvind Kumar and shri Vishal Jain. All
the directors of the company are agriculturists and have good
experience.
8. Cost of Project : (Rs. In Lacs)
a) Land
(If purchased new along
with documentary
proof)
b) Building
c) Plant & Machinery
d) Contingencies
e) Misc. Fixed Assets
f) Working Capital margin
g) Pre operative Exp.
h) Other Current Assets &
Securities
:
:
:
:
:
:
:
:
:
:
On Lease
On rent basis
--
1.50
0.50
0.50
-
Total Rs. : 2.50
9. Means of Finance : (Rs. In Lacs)
a) Promoter Share
b) Bank Term Loan
:
:
2.00
-
57
c) Subsidy
d) Quasi Equity
e) Unsecured Loan
:
:
:
1.00
0.50
Total Rs. : 2.50
10. Details of Cost of Plant &
Machinery /equipment
supported by quotation.
: Detailed list of plant & machinery/others utensils is required as:
(A)For juice/pulp line : Baby Pulper, Fruit mill, Hydraulic juice
press/screw type juice extractor, vacuum filling machine, bhatti,
utensils, knives set, SS top working table, washing tanks, crown
corking machine, lug cap sealing machine, PP Cap sealing
machine,homogenizer,grinder(pulverizer), Plastic barrels, jars, bottles,
chemicals etc. Price (Rs.) : 2.00 lacs
(B)For candy/tuti fruity base line : Along with pulp making the
another product tutti-frutti with Annual rated capacity of 60 tonnes
based on 2 shift working shall be started. To install this production
capacity, following machines shall be required:
Papaya peeling machine with SS body, 3 HP electric motor and other
attachments ,Papaya slicing and cubing machine of SS with
double rollers, SS hopper and 1 HP electric motor,
Diesel Furnace (Bhatti) with burners, fire bricks,oil cock, blower etc.
Electrically-operated drier with aluminum trays ,Heat-sealing
Machine etc. Price (Rs.) : 2.00 lacs
(C )For dried products line : the other machines/equipments shall be
required are cabinet dehydrator/sola drier/other drier, blanching
facilities,sealing machines etc.
Price (Rs.) : 2.00 lacs
(D )For canned /other integrated products line : the other
machines/equipments shall be required are canning line, boxes,
retort/autoclave with steam blanching facilities, sealing machines etc.
Price (Rs.) : 2.00 lacs
11. Details of Building
construction and the cost duly
certified.
NA
12. Area of operation with special
reference to Districts to be
covered.
Block: Tehsil:
District :
13. Availability of raw material,
name of the cluster and
District along with the major
crops.
Abundant quantity of Mango, amla, papaya, guava,& all
vegetables/spices available in the district as well as in
surrounding area throughout the year.
14. Backward Linkage with
farmers with reference to
either providing services or
purchase of raw material.
The promoter also itself engaged in production of
fruits/vegetables as well as having good contacts with the
progressive farmers of their area. The beneficiary has already
its own raw materials for preservation & processing even
though number of farmers willing to provide their raw materials
for same purpose.
15. Forward Linkages- Analysis
of domestic and export
markets, tie up made for sale
of Produce and branding
aspect.
Due to the shortages of availability of semi finished/primary
produce for ultimate use of tertiary/final processing unit for
converting these produce to final finished products to be sale in
local/domestic/export market. the processor have to go faraway
places for procuring desired quantity to other states/places at
higher rates of semi-finished produce. Thus there is ample of
potential for more low preservation units in that area.
16. No. of farmers/ orchardist to
be benefited.
Approx. 50 farmers to be benefited.
17. SWOT Analysis. Strength : There is a abundant availability of raw materials
such as guava, mango,amla,papaya, vegetables & spices in
proposed area of district. The low preservation unit is situated
in fruits/vegetable growing belt and having good network of
growers.
Weakness: Competition from existing unorganized sectors in
58
local vicinity and also low awareness/popularity amongst the
consumers attitudes.
Opportunity: Availability of capital subsidy from NHM to
start a business opportunity in local areas by converting their
raw materials to semi finished, value added products as per the
local demands of the consumers/market.
Threat: Natural Calamity.
18. Financial Analysis- IRR,
NPW, cost benefit Ratio,
Break even point, DER,
DSER, Projected balance
sheet etc.
Since the proposed unit has a very low investment and there is
an ample scope to enhance their profitability within stipulated
course of time.
19. Insurance of the fixed assets. Will Be Submitted Later if desired
20. Certificate from Pollution
Control Department.
No need of NOC from Pollution Control Board so far.
21. Name of the sponsoring bank
along with the details of
Techno-economical appraisal
reports, copy of sanction letter
and Detailed Project Report
(DPR) as submitted to bank.
The proposal has been self appraised by the beneficiary on the
basis of local requirements. therefore we have not approach to
the bank for finance the project. the brief detail project report
about availability of raw material, utilities, miscellaneous
assets, others information elaborated as:
DETAILS OF THE PROPOSED PROJECT
Building
The arrangement of building shall be on rent basis.
Machinery
A detailed list of machinery is already furnished. The
anticipated expenditure is Rs. /-.
Miscellaneous Assets
A provision of Rs. 25,000 would take care of the needs.
Preliminary & Pre-operative Expenses
It is estimated that registration and establishment expenses and
other pre-production
expenses like trial runs etc. shall be Rs.30,000/-.
Working Capital Requirement
Working capital is a pre-requisite for the success of any project.
However, in view of very small scale of activities and typical
nature of customers, the bank would hesitate to provide post
sales facilities. Major item of raw material is guava, mango,
amla, papaya etc which cannot be stored for more than 2-3
days. Hence, it is assumed that the we will arrange at our own
fund resources as unsecured loans from relatives/friends or
bank if agree of Rs.40,000/- .
Raw Material
The all-important raw materials are unripe but fully grown
bigger sized papaya and sugar. Papayas are grown almost in all
parts of Assam. No authenticate information is available about
the total production but it is in excess of 50,000 tons. Sugar is
also available in local market. Weight and process loss is
around 30% which is to some extent compensated by the
absorption of sugar syrup. Thus, the average loss is about 25%.
In other words to produce 60 tonnes of tutty-fruity, the annual
requirement of unripe papaya will be 80 tons. Other raw
materials like food grade colours and flavours and citric acid
shall be required in small quantity. Similarly, polythene bags
are also readily available.
Miscellaneous Assets
An amount of Rs. 25,000/- is provided towards working tables,
weighing scale, exhaust fans and furniture.
Utilities
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Power connection of 10 HP is sufficient. Around 1000-1200
ltrs. of water shall be required every day. Furnace oil or
kerosene consumption per day would be around Rs. 150/-.
Thus, annual expenditure on utilities at 100% activity level
would be Rs. 90,000/-.
22. Certificate regarding Nonavailing
of subsidy from any
other Central/State Govt.
Departments.
Enclosed
23. Social benefits with special
reference to employment
generation.
a) Direct employment
b) Indirect employment
c) Women/S.T/S.C.
employment
Yes , more than 06
Yes, approximately 20
Yes , approximately 25
24. Details of the sustainability of
the project with special
reference to its capacity to
generate income since only
one time grant is admissible.
The same can be analysed with the project report enclosed.
Since the proposed unit has a very low investment and there is
an ample scope to enhance their profitability within stipulated
course of time.
25. Implementation schedule Forwarding of Application submission 15 days
Site selection & commencement of minor civil work
30days
Completion of civil work & placement of
orders for machinery 45days
Erection, installation and trial runs 15days
26. Amount of subsidy sought Rs.1.00 Lacs.
Financial assistance in the form of grant is available from the
Ministry of Agriculture, NHM, Govt. of India, towards
expenditure on capital investment for eligible projects.
Recommended & Forwarded Signature of candidate
(By DHO/DDH/PRINCIPAL) A d d r ess--------------------------------
Phone & Mobile No.: ---------------
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M/S -------------------------------------------------------------------.
INTERNAL RATE OF RETURN
PARTICULARS I II III IV V VI VII
Profit After Tax 3.55 8.76 16.68 21.40 25.89 29.39 32.73
Depreciation on Assets 30.58 27.15 24.12 21.45 19.06 16.95 15.08
Interest on Term Loan 14.38 15.33 13.18 10.97 8.72 6.35 3.89
Cash Inflow 48.51 51.24 53.98 53.82 53.67 52.69 51.70
PVF @ 25% 0.80 0.64 0.51 0.41 0.33 0.26 0.21
PVF @ 30% 0.77 0.59 0.46 0.35 0.27 0.21 0.16
Present value Of 38.81 32.79 27.53 22.07 17.71 13.70 10.86 163.47
Cash Inflow @ 25%
Present value Of 37.32 30.32 24.57 18.84 14.45 10.92 8.24 144.66
Cash Inflow @ 30%
Total Project Cost 324.24
I.R.R = 25 + 163.47
163.47-144.66 18.81
25.00
= 25 + 8.69 33.69
25.00 8.69
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M/S
DEBT EQUITY RATIO -
PARTICULAR I II III IV V VI VII
A). DEBT -
BANK TERM LOAN
B). EQUITY -
OWN CAPITAL
CAPITAL SUBSIDY
FROM
GOVT./DEPOSIT
RESERVE &
SURPLUS
DEBT EQUITY RATIO
( A / B )
62
PERFORMANCE & FINANCIAL
INDICATORS
S.No. Particulars I II III IV V VI VII VIII
1 Paid up Capital
2 Reserve & Surplus
3 (-) Intangible Assets
4 Tangible Net Worth (1+2+3)
5 Term Loans
6 Other Term Liabilities
7 Unsecured Loan
8 Total Term Liabilities (5+6+7)
9 Capital Employed (4+8)
10 Net Block
11
Investment in allied/group
concerns
12 Investment in Others
13 Debtors>6 months
14 Other Non Current Assets
15
Total Non Current Assets
(11+12+13+14)
16 Inventory
17
Debtors Receivable (less than
6 months)
18 Other Current Assets
19
Total Current Assets
(16+17+18)
20
Bank Borrowings/Commercial
Papers
21
Sundry Creditors/ Other
Current Liabilities
22
Total Current Liabilities
(21+22)
23 Net Working capital (19-22)
Operating analysis
Net sales
Profit before tax/loss
Provision for tax
Profit after tax/loss
Depreciation and other non
cash expenses
Cash Accrual
Ratio Analysis
1
Current Ratio (Current Assets/
Current Liabilities)
3
Debt Equity Ratio (Term
Liabilities/Tangible
Net Worth)
4
Leverage ratio (Term + Current
Liabilities/
tangible Networth)
5 Net Profit to Sales (%) 5.35 12.51 22.61 29.02 35.11 39.85 44.39 49.30
6 DSCR 1.42 1.46 1.58 1.69 1.75 1.80 1.85 1.94
7 Average DSCR 1.69
8 Break Even Point 69.08%
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Low Preservation Unit (TOMATO PRODUCTS PRODUCT):
THE PRODUCTS:
Tomato products such as: juice, puree, paste, ketchup, sauce, powder, chutney, canned tomatoes,
tomato gravy etc. are very popular and are in good demand in domestic and export markets.
Here,
some of the important products are discussed in this profile.
PRODUCT APPLICATIONS:
Preparation of other tomato based products from paste and purees tomato paste and puree
also used in producing baby foods
Ketchup. Sauce & chutney are consumed directly with other foods. instant tomato juice
powder used in preparing juice, puree or paste .
Dehydrated tomato powder used in making instant soup-mixes
Canned tomato largely being exported. .
MARKET:
The demand and applications for processed tomato products are increasing every year. Based on
applications as mentioned above, the major market segments are: retail outlets for direct sales,
food
processing sector, food service sector and export market.
As per statistics of AIFPA-New Delhi, India produces about 6 lakh MT of processed fruits and
vegetable products ib which tomato products alone account for 10% of total production. as
estimated by CLL-Mckinsey report, India will need purees, ketchups and jams worth Rs.600
crores
per annum by 2005 AD. the same report forecasts 15% growth of total processed fruit and
vegetable products sector in which tomato products have major contribution. APEDA has
reported
export of 2225 Mt of these products worth Rs.7 crores for 1995-96.
SUGGESTED PROJECT SIZE:
SUGGESTED INSTALLED CAPACITY:
It is proposed to crush 1 MT of fresh tomatoes per hour ,i.e., 24 MT per day. Annual capacity
will
be 7200 MT of fresh tomatoes handling. Assuming about 15% losses in procurement,
transportation, storage and handling. Total will be 6110 MT per annum
Installed capacity of tomato processing.. : 7200 Mt '
Actual annual handling of fresh tomatoes : 6000 Mt
Annual production of tomato juice ... ....................... : 2100 Mt
Other tomato products are produced from tomato juice.
TYPICAL PRODUCT -MIX:
Tomato paste(24 to 28 deg brix) 300MT
Tomato puree(08 to 12 deg.brix) 300Mt
Tomato ketchup(26% to 28% solid) 350Mt
Tomato sauce (25%to 28% solids) 150 Mt
Tomato chili sauce(25%solids) 100Mt
Tomato chutney(min 50% solids) 50Mt
Total production of tomato prods. 1250MT
TECHNOLOGY ASPECTS:
Evaluation & Selection of available technology:
Still tomato products are commercially manufactured by using thermal processing technology.
However, there are many innovations in preprocessing, sterilization and filling/packing
equipment
maximum efficiency, quality and speed. Aseptic processing and packaging is a land mark
achievement in thermal processing technology. Adoption of aseptic technology requires very
high
investment and special skills. Therefore, it is suggested to implement this technology at the phase
of the project
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MANUFACTURING PROCESS IN BRIEF:
Tomatoes are first washed, inspected, sorted (manually) and fed onto the processing line. It is
desirable to process the tomatoes of same maturity and colour to get final product of consistent
quality. Tomatoes are subjected to heating in hot-break system prior to crushing into tomato
juicer.
while crushing into juicer, tomato juice and seeds are separated. Tomato juice collected in s.s.
Tanks, pumped to standardization tanks followed by pasteurization in scrap surface pasteurizer.
Tomato juice is then concentrated under vacuum for manufacturing tomato puree. Tomato puree
is
the first form of concentrated tomato juice. Tomato puree is processed further to make tomato
paste, chutneys, ketchups and sauces. Tomato ketchup and sauce are manufactured by adding
required quantity of sugar, salt, spices Preservations and food grade colour. Thus prepared
ketchup/sauces are filled into bottles under vacuum and bottles are then sealed perfectly.
PLANT & MACHINERY SUPPLIERS:
A) MAIN PLANT & MACHIMNERY SUPPLIER:
1- Jawala Engineering Co.
12, Surve India. Estate,
Sonawala Cross Rd. No.1
Goregaon (East),
Mumbai-400063
3- Gardeners Corporatioin
6, Doctor Lane
P.B.No 299
New Delhi-llOO01
5- Cantech Machines
13, Vora Bhuvan, Kings'
Circle, Matunga (C.R.)
Mumbai-400019
TECHNOLOGY SOURCES:
CFTRI- Mysore & department of horticulture & food processing, lucknow can provide complete
knowhow .Many professional consultants are also available.
6- Bubber Machine Tools 407,
Dalmal Chambers, 29,
New Marine Lines,
Mumbai-400020
2- Goma Engineering PvtLtd.
Majiwada, B/H Universal Petrol
Pump,
Thane-4000601
4- Gadekar & Associates PvtLtd.
304 Sector 21 A,
Faridabad-121001