Amla Products

Uploaded on : June 2010

Product and its applications

A bitter fruit Amla is better known for its medicinal values. It is used in various forms and is an important ingredient in Ayurvedic and herbal medicines. With a shift in thinking and awareness about wellness Amla in different forms is consumed by health conscious people. Amla being a fruit is available during season for 4-5 months. It is rich in vitamins and it is processed to improve its shelf life. With the popularity of Ayurveda both as a medicine and as a beauty aid the demand for various products with Amla has increased.

Compliance under PFA Act is compulsory.

Industry Profile and Market Assessment

Amla products are available in different forms, powder, syrups and oils, dried and treated slices, crushed and pasty form (as in Chawanprash). Amla is also consumed in raw form as a fruit it has medicinal values as it is considered good for skin, it is good for digestion and offers cure for diabetics in controlling sugar level. Somee of its products like chawan prash and oils have a fairly large market with well established companies like Dabur, Zandu, Charak Baidyanath etc. competing to capture larger share of the market. The advertising by these companies have created the requisite consciousness about the product but the prices of these products are sometimes beyond the reach of the common man. A small unit thus catering to its local area and keeping the prices with reach as well as maintaining the purity and quality of the product will be able to survive. The price and the quality are two important factors. A small unit with limited manufacturing capacity will also be send a message that its products are homemade and cater to demand only. The unit can also seek franchise from the reputed manufacturers to cater to their requirement in the area.

The area selection for marketing and its pricing and quality are of utmost importance to capture a market.

Manufacturing Process & Know How

Amla processing is awell established process and in fact it is readily processed in many household. Fresh fully grown amlas are cleaned and washed. They are then cooked in pressure vessels for making pasty products or are sliced and dried in sun to make chewable slices. Once the fruit has been boiled seeds are removed before drying. The fruit is also sometimes crushed to extract its juice. Spices and other ingredients are added. The products are properly packed and dispatched. Know how is available with Central Government research Laboratories. The machinery is all indigenously available. The production capacity envisaged is 3000 kgs per year keeping in view the limited market.

Know how is available with Central Government research Laboratories. The machinery is all indigenously available.

The production capacity envisaged is 200 tonnes per season keeping in view the market

Plant and Machinery

The product does not require many items of machinery. Keeping in mind the size of market production capacity of 3000kgs per year with working of around eight months as Amla is not available during off season of about four months. The main plant and machinery required comprise

• Mixer Grinder - 2 nos.
• Gas Bhatti
• Fruit Crates.
• Stainless steel utensils/Plastic tubs.
• Pressure cookers - 2nos.
• Weighing scales
• Bag sealing machines - 2nos.

The total cost of machinery is estimated to be Rs.45000/-.

The unit will also require miscellaneous assets such as furniture, fixtures, storage facilities etc. the total cost of these is estimated to be Rs. 20,000/-.

Raw material and Packing Material

The basic raw material for the unit is good quality Amla fruit. After removal of seeds the actual recovery is 60% to 65%. Considering a recovery of 60% Amla required at 100% capacity is 5000kg. Amla is available for 5 months and requirement of subsequent 3 months is stored. Other items like salt, sugar, cumin, brahmi etc. are all available locally. The finished product is packed in plastic bags and the syrup is packed in plastic bottles. A proper survey has to be conducted for location of the plant for easy availability of raw material. The price of raw material, spices and packing material at full capacity utilization is estimated to be Rs. 1.08 lakhs per year. At 60% capacity in 1st year the cost works out to Rs 0.65 lakhs.

Land and Building

For smooth operation of the unit, it will require a small built up area of 40-45 sq. mts. The same may be taken on rental basis.

Manpower

For smooth functioning of the unit the requirement of man power is expected to be around 3 persons.

Skilled Workers	1
Helpers	2
The annual salary bill is estimated to be around	Rs. 0.48 lakhs

Sales Revenue: (100% capacity)

Many varieties of products can be made from Amla. But it is suggested that to identify the exact product mix the market has to be ascertained. Products like slices, salted/sugared, powder, sticks etc. can be sold @Rs.50/- per kg. wheras syrups and morabas @ Rs.80/- per kg. Other products like Chawanprash and Hair oils have not been considered as they are high value items and need extra marketing efforts. Assuming that the two products will be equally sold the sales income at 100% capacity will be as under:

Product	Qty(Kgs)	Price/kg (Rs.)	Value (Rs. Lakhs)
Slices,Goli,Sticks	1500	80	1.20
Syrups, Morabbas	1500	120	1.80
Paddy	750	9500	71.25
Total			3.00

Cost of Project

Particulars	Rs. lakhs
Land & Building	on rent
Plant & Machinery	0.45
Other assets	0.20
Contingencies & pre-expenses	0.25
Total	0.90

Means of Finance

Promoters Contribution	0.30
Term Loan	0.60
Total	0.90

Profitability:(60%capacity)

Sales	1.80 (Rs. lakhs)
Raw material	0.70
Salary	0.32
Utilities	0.08
Repairs & Maintenance	0.03
Selling & Admn expenses	0.18
Depreciation	0.07
Interest on T.L	0.07
Interest on W.C	0.04
Cost of production	1.49
Profit	0.31

Requirement of Working Capital

It may be difficult for Bank to finance working capital needs as the stock of raw material will not be much during season and the majority of the customers will be scattered retailers with small quantities. Hence it is suggested to avail a personal loan. The amount envisaged is Rs.30000/-

Break Even point

57%

Machinery Suppliers

• M/S Sujata Enterprises Laxmi Road Pune.
• M/s Techno Equipment, Parekh Street, Girgaon Mumbai.
• M/S Hildon Packaging Machine P. Ltd. 16, MIDC, Chakala Andheri, Mumbai

Contact for more information

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