Amla Processing

Uploaded on : July 2019

Introduction

 

Phyllanthus emblica, also known as emblic or emblic myrobalan or  myrobalan, Indian gooseberry is well known over the world for its delicious fruits having rich medicinal properties and values.   Amla fruits are a very rich source of vitamin C having an ascorbic acid content varying from 0.9% to 1.3%, the second highest among all the fruits cultivated.

 

Products and Its Application

 

Amla consumed as such in large quantities. The major quantity of Amala is used making chayavanprash, ayurvedic medicines, cosmetic products and other value added products like preserve, juice, ready-to-serve drink, sherbet, jam, fruit bar, dehydrated amla whole or powder, mouth freshners, etc. Chayavanprash is generally considered as health tonic in all respects whereas ayurvedic products like TRIFALA is used for constipation and cosmetic products like hair oils or creams are useful for keeping hair and skin healthy respectively. The food products as enlisted are considered healthy and source of vitamin C.

 

Plant Capacity & Product Mix:

 

The proposed project is of processing amla at the rate of 2.5 tons/hr to produce 1 ton/hr pulp in its season, say 130 days (4 months) which can be sale directly those who are making amla pulp based products and the promoter can also store and then processed the same pulp in other value added amla products like amla drink in remaining 170 days of the year.

 

Desired Qualification for Promoter

 

The promoter must be well versed with processes for value added amla products, amla growing regions, seasons, etc. as well able to markets the same in India and abroad. Also, able to produce the end products of desired end use application.

 

Industry Outlook/Trend

 

The market for herbal products and natural sources for vitamins and minerals are increasingly in demand due to health benefits. This trend is likely to continue on domestic and export front. Amla is having very high content of naturally available ascorbic acid (vitamin C) and therefore products of amla such as powder, juice; pulp, sugar coated products etc. are growing very fast in the market.

 

Market Potential

 

Amla extract (ingredients) are useful in various food and beverage applications such as nutritional bars, cereals, jams, powder drink mixes, yogurts and dietary supplements. The potential for amla extract as a food ingredient is increasing substantially, owing to the growing global nutraceuticals and functional food market. Amla extract also provides broad spectrum skin protection against heavy metals due to its anti-oxidant properties. Thus, the market for amla extract is expected to grow at a healthy CAGR throughout the next decade.

 

India exports a significant amount of amla and amla extracts to countries like the U.S., Japan, Nepal, Bangladesh, Malaysia, Germany and the Netherlands. Various herbal medicine manufacturing companies are using amla extracts to provide novel dietary supplements in herbal tea and powders forms. Effective production, processing and marketing of amla extracts is expected to boost the market size during the next decade. The major players are: Biomax, Taiyo international (Sun Amla), Arjuna Natural Extracts Ltd., Nutra Genesis and Archer chem.; etc.

 

At present amla processing activity is mainly concentrated in the state of U.P, Gujarat, Maharashtra and southern states. Most of the facilities are in the unorganized sector. Hence there is good scope for medium scale well organized processing facilities to maintain quality parameters required by large companies and importers.

 

Raw Material Requirements :

 

India produces about 15 Lakh tons of Amla in 1 Lakh hectre. The leading amla producing states are: Uttar Pradesh, Madhya Pradesh, Tamil Nadu and Gujarat, other states also growing amla are: Andhra Pradesh, Chahattisgarh, Jharkhand and Haryana. The key Amla growing belts in leading states are as under:

 

States	Districts
Uttar Pradesh	Pratapgarh, Rai Bareli, Varanasi, Jaunpur, Sultanpur, Fatehpur, Kanpur, Agra and Mathura
Madhya Pradesh	Dewas, Hoshangabad, Shivani, Rewa, Satna, Tikamgarh, Betual, Chindwara, Shivapurkala, Panna, etc.
Tamil Nadu:	Tirunelveli, Thoothukudi, Sivagangai, Coimbatore, Salem & Dindugal
Gujarat:	Kheda, Anand, Sabarkantha, Banaskantha, Mehsana, Ahmedabad, etc.

 

There are three main varieties of amla viz., Banarasi, Francis (Hathijhool) and Chakaiya.   Other varieties identified and released for commercial cultivation during the recent years are: Kanchan (NA4), NA6 and NA7 . Besides above varieties, Anand 1, Anand 2 and Anand 3 have been selected as promising strains at the Gujarat Agricultural University

 

Amla yields approx. 40% juice having 10° brix for making any further value added product. One has to calculate the requirements of raw materials accordingly depending on quantity of end product to be manufactured. The peak season for amla is from October to January. Here, it is proposed to produce 2.5 tons/hr fresh amla to produce 1 ton/hr pulp at every hour as peak season is just four months. One can keep in cold storage after January for other 2-3 months.

 

Manufacturing Process:

 

Sound mature amla fruits are wash thoroughly under turbulent washing to remove dirt, dust and adhered unwanted material. Thus cleaned and washed amla are subject to cutting in a specialized machine, followed by pulping with filtration, standardizing and pasteurizing for storage or otherwise can be used for making other value added food products either by boiling the pulp or sometime direct cooking of amla fruits (no pulping) for making products like amla preserve, candy, pickle or mouth freshener. The pulp or extract can be used in making chayavanprash, juices, ready-to-serve beverages, fruit bar, amla sauce, cosmetic products, etc.

 

Manpower Requirement

 

Manpower Total Requirements
Technical Staff	7
Adm. Staff	8
Marketing Staff	6
Labour	49
Total	70

 

Implementation Schedule

 

Project Stages	MONTHS
	1	2	3	4	5	6	7	8	9	10
Purchase of Land
Completion of Building
Ordering of Machinery
Delivery of Machinery
Term/Wkg Loan Sanction
Installation of Machinery
Commissioning of Plant
RM/Inputs Procurement
Manpower Appointments
Commercial Production

 

Cost of Project

 

No.	Costing Heads	Qty	Rate/Unit	Rs. Lakh
1	Land in Sq. M. + Expenses	2,000	1,000.00	20.00
2	Building	1,000	9,000.00	90.00
3	Plant & Machinery			110.00
4	Other Capital Investment			25.00
5	Contigency			10.00
	Total Cost of Project

 

Means of Finance

 

Means Heads	Rs. Lakhs
Promoters Capital	63.75
Term Loan	132.00
MFPI Subsidy	50.00
Unsecured Deposits	9.25
Total Means of Finance	255.00

 

Working Capital Calculation

 

Particulars	Total Amount	Stock Period Days	Value of Stock Period	Promoter Margin	Promoter Share	Bank Borrowing
Raw Material	1,950.00	15	97.50	0.50	48.75	48.75
Packing Material	978.00	30	97.80	0.40	39.12	58.68
Work in Process	3,471.31	3	34.71	0.40	13.89	20.83
FP Stock	3,640.00	15	182.00	0.40	72.80	109.20
Bills Receivable	3,640.00	15	182.00	0.40	72.80	109.20
Working Expense	12.00	30	1.20	1.00	1.20	0.00
Total:	13,691.31			0.00	248.56	346.66

 

Machinery Required

 

No	Equipment	Qty
1	Fruit & Vegetable Washer: 5 ton/hr	1
2	Amla Shredding Machine	2
3	Amla Juicer	2
4	Standardization Tanks 500 lit each	2
5	Pasteurizer	1
6	Holding Tank	2
7	Steam Jacketed Kettles: 500 lit	2
8	Canning Machinery	1

 

Harshad Food Equipments
Sect.7, Plot No. 96,

Pcntda, Bhosari,

Pune - 411026,

Maharashtra

 

Ylem Energy,

No. 25/34, Anand Chamber

East Patel Nagar

Delhi 110008

 

Profitability

 

Sr. No.	Particulars	Year 1	Year 2	Year 3	Year 4	Year 5
A	Gross Sales (Rs. In lakhs)	2548	2912	3276	3276	3276
	Less:
1	Raw Materials	1365	1560	1755	1755	1755
2	Packing Material	684.6	782.4	880.2	880.2	880.2
3	Fuel	63	72	81	81	81
4	Power	35.28	40.32	45.36	45.36	45.36
5	Manpower	83.7096	94.4416	105.1736	105.1736	105.1736
6	Depreciation	26.25	30	33.75	33.75	33.75
7	Sundry Expenses	35	40	45	45	45
8	Interest on Term Loan	11.088	12.672	14.256	14.256	14.256
9	Interest on WC Loan	36.575	41.8	47.025	47.025	47.025
10	Repairs & Maintenance	17.5	20	22.5	22.5	22.5
11	Marketing Expenses	80.5	92	103.5	103.5	103.5
B	Production Cost	2438.5026	2785.6336	3132.7646	3132.7646	3132.7646
C	Gross Profit (A-B):	109.4974	126.3664	143.2354	143.2354	143.2354
	Taxes @ 30%	32.84922	37.90992	42.97062	42.97062	42.97062
	Net Profit	76.64818	88.45648	100.26478	100.26478	100.26478

 

The proposed unit will have the production capacity of 2600 MT of Amla pulp per year. The unit cost of power is taken at Rs. 8. The depreciation on building is taken at the rate of 5% whereas for plant and machinery it is at 10%.

 

The sales price of Amla pulp is taken at the rate of Rs. 67,500 per MT on an average for proposed project.

 

Breakeven Analysis

 

Break Even Point: Annual Fixed Cost x100/ Annual Fixed Cost + Profit

= 61.03

 

Statutory/ Government Approvals

 

There is statutory requirement of FSSAI license for setting up of amla processing industry. Moreover, MSME & GST registration, IEC Code for Export of end products and local authority clearance may be required for Shops and Establishment, for Fire and Safety requirement and registration for ESI, PF and Labour laws may be required if applicable. Entrepreneur may contact State Pollution Control Board where ever it is applicable.

 

Backward and Forward Integration

 

Promoter may think of having their own amla plantation particularly for organic products.

Similarly for forward integration more products of amla and similar fruits may be added to serve the needs of the clients.

 

Training Centers/Courses

 

For food processing industry training and short term courses are available at Indian Institute of Food Processing Technology, Thanjavur, Tamil Nadu and Central Food Technological Institute, Mysore.

Udyamimitra portal  ( link :  www.udyamimitra.in  ) can also be accessed for handholding services viz. application filling / project report preparation, EDP, financial Training, Skill Development,  mentoring etc.

Entrepreneurship program helps to run business successfully is also available from Institutes like Entrepreneurship Development Institute of India (EDII) and its affiliates all over India.

 

Source

 

SIDBI Tower, 15, Ashok Marg,
Lucknow- 226001, Uttar Pradesh
Phone No. - 0522-2288546, 0522-2288547, 0522-2288548
Fax no. – 0522-2288459

For further information please contact

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com