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MANUFACTURING
UNIT
GROUP 7
ASHWIN | MADHUMITHA | NEHA | SESHADRI | VIMAL
MARKET ANALYSIS
• Market Size for Mango Pulp (2016):
Production (MT) Export (MT) Domestic (MT)
465000 200000 265000
400,000
MT, 368,702
• Demand Forecast of Mango Pulp in India: 350,000
300,000
250,000
MT
200,000
150,000
100,000
50,000
0
MARKET ANALYSIS
Mango Pulp Market by Application (2016),
Jain Farm Fresh
India
Flavors
1%
Others Capricorn Food
9% Products Ltd
17%
Food and Inns
13%
56%
8%
Exotic fruits
6%
Beverages Others
90%
Increase in demand of Fruit Beverages directly affect the Mango Pulp demand
PROJECT DETAILS
• Variety to be Processed – Alphonso
– Premium variety – Better margins
– High demand for export and fruit juice plants
• Location – Nashik, Maharashtra – Food Park
– Alphonso growing area
– Subsidies – Electricity, Interest Rates
• Market – Supply to bigger mango pulp brands (Capricorn)
– Tough to establish market with limited capacity
– Good knowledge transfer
• Contract Farming
– Aiding the farmers throughout the year – Increased Yield
– Stable prices
STEPS IN PREPARATION
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Capacity (Tonnes) 0 720000 720000 720000 720000 720000 720000 720000 720000 720000 720000
Utilization 0 0.6 0.7 0.8 0.9 0.95 0.95 0.95 0.95 0.95 0.95
Utilized Capacity (Tonnes) 0 432000 504000 576000 648000 684000 684000 684000 684000 684000 684000
Pulp Produced (Tonnes) 0 259200 302400 345600 388800 410400 410400 410400 410400 410400 410400
Selling Price per Kg 0 110 110 110 120 120 120 130 130 130 130
Buying Price per Kg 0 55 55 50 50 45 45 40 40 40 40
Year 0 1 2 3 4 5 6 7 8 9 10
Loan Intake 5000000 0 0 0 0 0 0 0 0 0 0
Debt Outstanding 5000000 5000000 5000000 4000000 3000000 2000000 1000000 0 0 0 0
Interest 0 700000 700000 700000 560000 420000 280000 140000 0 0 0
OPERATING COST
Year 0 1 2 3 4 5 6 7 8 9 10
Raw Material 0 23760000 27720000 28800000 32400000 30780000 30780000 27360000 27360000 27360000 27360000
Other COGS 0 1425600 1663200 1900800 2332800 2462400 2462400 2667600 2667600 2667600 2667600
Salaries 0 2904000 2904000 2904000 2904000 2904000 2904000 2904000 2904000 2904000 2904000
Other Expenses 0 570240 665280 760320 933120 984960 984960 1067040 1067040 1067040 1067040
Total 0 28659840 32952480 34365120 38569920 37131360 37131360 33998640 33998640 33998640 33998640
Net Flow -8000000 -2295870 -384650 1299870 4530510 7976140 7956230 13649565 14523770 14515020 14515020
IRR – 34%
SOCIAL COST BENEFIT ANALYSIS
• Decrease in Selling Price will make the project a Negative NPV one
• Increase in Buying Price also has a huge impact on the project
IMPLEMENTATION OF PROJECT
April - June
Processing
April - June June -
Government
approval
Ordering
machinery
Construction
work
Commissioning
of Plant
Procurement Selling
June -
CRITICAL SUCCESS FACTORS
• Stabilizing the Local Prices – More production from farmers
• Throughout the year assistance to farmers for higher yield
• Long-term contracts with Buyers to have assured selling price – B2B business
• Maintenance of Quality Control
FUTURE STRATEGY
• Expansion to 2 MT/Hour
• Expansion to other Geographical areas – Reduces risk
• Direct export to Fruit Juice manufacturers
THANK YOU