Breakfast Cereal Foods
Production Capacity : Rs. 17.70 lakh
Uploaded on : June 2009
Product and its applications
The aseptic fruit concentrates are prepared after evaporation of water from fruit juices. These maintain quality, prolonged shelf life and optimize the transport and storage cost.
The plant facility offers a wider range of final juice products for distribution such as fruit juice concentrates either packed in bulk or for consumer use, blended juices, both concentrated and ready for consumption, along with single strength fruit juices packaged in a wide variety of commercial containers. There has been a remarkable growth in the demand for the juice concentrates due to the increasing popularity of new non-alcoholic and alcoholic fruit drink products, ice cream, yoghurt and baby food etc. The fruit & vegetable syrups or concentrates are used as flavors in these products. The soft drink market is also creating huge demand for the concentrates. The move away from alcoholic drinks and the relative inconvenience of hot drinks has resulted in a major shift to packaged soft drinks of all flavours. In addition, the confectionery industry has followed the suit and new products are now constituted by fruit and vegetable concentrates as part of their confectionery formulations and processes.
Consumers demand healthy options while at the same time have increased concerns about food safety risks, two trends that may often conflict with each other in juice concentrate processing. To address the demand for juice concentrate without synthetic or chemical preservatives, the manufacturers are exploring new preservation methods like aseptic processing.
Market Potential
The fruit juice industry has made good progress in India . According to trade sources, the total market for fruit drinks & nectars has reportedly shown a growth rate of 10 -15% per annum in the past. The Indian market for fruit juices has reported an annual growth of 25-30%. The new sector which has potential to be explored is combination of various products like fruit and milk combination, fruit-yogurt drinks that are more natural & nutritious drinks.
At international scenario, the consumption of soft and fruit drinks is estimated to be quite high. France has registered an annual growth of 20% during in past few years. Per capita consumption of fruit juice in USA is 46 L, Germany 39 L, Holland 24 L, UK19 L, Spain15 L, Japan15 L, France 12 L & Italy 8 L. Per capita consumption of soft drinks is highest in Norway at 122.7 L, followed by UK 113 L, Sweden 92.2 L, Holland 90 L, Germany , Ireland & Austria 85 L each and France 62 L. These figures indicate potentiality of exporting fruit juice concentrates to European markets. Brazil is the world leader in export of citrus juice concentrates and nectars.
Basis and Presumption
- The unit will work for 300 days per annum for 20 hrs working / day .
- The unit can achieve its full capacity utilization during the 3rd year of operation.
- The wages for skilled workers are taken as per prevailing rates in this type of industry.
- Interest rate for total capital investment is calculated @ 12% per annum.
- The entrepreneur is expected to raise 20-25% of the capital as margin money.
- The unit would construct its own building.
- Costs of machinery are based on average prices of machinery manufacturers.
Implementation schedule
Project implementation will take a period of 8 months. Break-up of the activities and relative time for each activity is shown below:
| Scheme preparation and approval | 01 month |
| SSI provisional registration | 1-2 months |
| Sanction of financial supports etc | 2-5 months |
| Installation of machinery and power connection | 6-8 months |
| Trial run and production | 01 month |
Technical Aspects
Location
The plant can be located at any suitable place keeping in view the marketing convenience, availability of power, water and skilled manpower.
Salient Features of Process / Technology
The industry and technology of processing fruit into concentrates and blended juices includes well-known individual steps and equipment for accomplishing each of the stages or steps in the fruit processing chain of events. Ripe fruits are cut and passed through a pulper to get a smooth pulp. The pulp is pasteurized, cooled and evaporated and passed through an aroma recovery system. The aroma is collected and added back to the concentrate . Manufacture of fruit juices and concentrates by canning and vacuum concentration has been in practice for many years. Further, there are chances of deterioration of product packed in cans through leakage, rusting, etc. leading to bacterial contamination. Therefore, new technology of aseptic filling and packing is being adopted worldwide for avoiding these chances. For extraction of fruit juice and pulp, hot break system has been recommended.
Evaporative concentration, freeze concentration and reverse osmosis are commercially exploited. As freeze concentration and membrane concentration are very expensive technologies, evaporating concentration has been considered. In evaporating concentration double-effect falling film evaporator has more advantages over single effect falling film evaporator.
After obtaining juice, it is subjected to vacuum concentration, Vacuum concentrator operate on vacuum with steam requirement of 570 kg/hr and water requirement of 5000 L/hr. In evaporator, juice is subjected to heating at 100°C under vacuum. Vacuum concentrator is equipped with aroma recovery unit. The exit temperature for concentrate is15°C and is allowed to cool to 10°C. The concentrates are then stored in No.10 cans, 200 L carboys or 220-240 kg drums.
For manufacturing baby food, puree or paste of banana, carrot, guava etc. are mixed together in mixing & standardization tanks, where other ingredients are added along with the required amount of water and preservatives. The paste is then homogenized, pasteurized and filled into cans or bottles. Baby food thus prepared is highly nutritious. Such baby foods are rich source of vitamin C, vitamin A., minerals, iron and other valuable nutrients.
Pollution Control
There is no major pollution problem associated with this industry except for disposal of waste which should be managed appropriately. The entrepreneurs are advised to take "No Objection Certificate" from the State Pollution Control Board.
Energy Conservation
The fuel for the steam generation in the boiler is coal or LDO depending upon the type of boiler. Proper care should be taken while utilising the fuel for the steam production. There should be no leakage of steam in the pipe lines and adequate insulation should be provided.
Production Capacity
| Quantity | 3 000 t |
| Installed capacity | 20 tpd |
| Optimum capacity utilization | 70% |
| Working days | 220 |
| Manpower | 45 |
| Utilities | |
| Motive Power kWH | 180 |
Financial Aspects
Fixed Capital
Land & Building Amount (Rs. lakh)
Particulars |
Amount |
| Land 15,000 m 2 & development | 090.00 |
| Built up area 8,500 m 2 - | 535.00 |
| Total cost of land and building | 625.00 |
Machinery and Equipment Amount (Rs. lakh)
Description |
Amount |
| Fruit washer, fruit mill, pulper, blancher, evaporator, centrifuge, pasteurization plant, chilling plant and aseptic processing unit, weighing scales, allied equipment, Transport | 480.00 |
| Erection & electrification of machinery & equipment @10% cost | |
| Office furniture, fixtures & miscellaneous assets | 042.00 |
| Total | 540.00 |
Pre-operative Expenses Amount (Rs. lakh)
| Consultancy fee, project report, deposits with electricity department etc | 045.00 |
Total Fixed Capital Amount (Rs. lakh)
| (9.1.1+9.1.2+9.1.3) | 1240.00 |
Recurring expenses per annum
Personnel Amount (Rs. lakh)
Designation |
No. |
Salary Per month |
Amount |
| Factory General Manager | 1 | 60,000 | 07.20 |
| Managers | 3 | 35,000 | 12.60 |
| Supervisory staff | 6 | 22,000 | 15.84 |
| Accounts, Admn staff | 5 | 18,000 | 10.80 |
| Technician | 4 | 15,000 | 07.20 |
| Skilled workers | 8 | 12,000 | 11.52 |
| Unskilled workers | 18 | 4,000 | 08.64 |
| 73.80 | |||
| Perquisites @15 % | 11.00 | ||
| Total | 45 | 84.80 |
Raw Material including packaging materials Amount (Rs. lakh)
Particulars |
Qty (t) |
| Raw material, additives, packaging material, miscellaneous | 1820.00 |
| Total | 1820.00 |
Utilities Amount (Rs. lakh)
Description |
Amount |
| Power | 46.00 |
| Water | 04.20 |
| Total | 50.20 |
Other Contingent Expenses Amount (Rs. lakh)
Description |
Amount |
| Repairs and maintenance @10% | 054.00 |
| Consumables & spares, others | 068.00 |
| Transport & travel | 019.50 |
| Publicity, postage, telephone | 009.00 |
| Insurance @1% | 010.50 |
| Total | 71.00 |
Total Recurring Expenditure Amount (Rs. lakh)
| (9.2.1 + 9.2.2 + 9.2.3 + 9.2.4) | 2116.00 |
Working Capital Amount (Rs. lakh)
| Recurring expenses for 3 months | 530.00 |
Total Capital Investment Amount (Rs. lakh)
| Fixed capital (Refer 9.1.4) | 1240.00 |
| Working capital (Refer 9.3) | 0530.00 |
| Total | 1770.00 |
Financial Analysis
Cost of Production (per annum) Amount (Rs. lakh)
| Recurring expenses (Refer 9.2.5) | 2116.00 |
| Depreciation on building @ 3.33% | 0027.00 |
| Depreciation on machinery @10% | 0052.80 |
| Depreciation on furniture @ 20% | 0008.40 |
| Interest on Capital Investment @ 12% | 0211.80 |
| Total | 2416.00 |
Sale Proceeds (Turnover) per year Amount (Rs. lakh)
Item |
Item |
Rate/t (Rs.) |
Amount |
| Concentrate | 3000 | 1.20 lakh | 3600.00 |
Net Profit (per year)
= Sales – Cost of production |
Net Profit Ratio
Net profit X 100 Sales 1184X 100 3600 = 32.9 % |
Rate of Return on Investment
Net profit X 100 Capital Investment 494 x 100 1650 =30% |
Rate of Return on Investment
Net profit X 100 Capital Investment 1184X 100 1770 = 66.9% |
Annual Fixed Cost Amount (Rs. lakh)
| All depreciations | 088.20 |
| Interest | 211.80 |
| 40% of salary, wages, utility, contingency | 119.20 |
| Insurance | 010.50 |
| Total | 429.70 |
Break even Point
| B.E.P. | Annual Fixed Cost X 100 Annual Fixed Cost + Profit 429.70X 100 429.70+ 1184 42870 1613.70 = 26.6 % |
Addresses of Machinery and Equipment Suppliers
In crop duration of 6 months, it provides gross return of Rs. 1, 80,000 @ Rs.30/kg for 6000 kg. Considering expenses as Rs.18, 000, the estimated net return is Rs. 1, 62,000 per ha.
Addresses of Some Dealers in Medicinal plants/ Planting material
- SSP Pvt. Ltd
19-DLF Industrial Area, Phase-II, 13/4-Mathura Road
Faridabad - 121 003 (Haryana) - Alfa Laval ( India ) Limited
30 to 33 & 74 & 82, A/P Sarole Veer Road ,
Tal - Bhor, Dist - Sarole, Pune-412 205
Web page: www.alfalaval.com - Mather & Plant ( India ) Ltd
Chinchwad,
Pune-411019 - FMC Asia Pacific , Inc .
1/F, Krislon House Saki Vihar Road , Saki Naka Mumbai , 400 072 - M/s Bajaj Maschinen (P) Ltd.
7/20, 7/27, Jailaxmi Industrial Estate, Site IV
Sahibabad Industrial Area
Ghaziabad -201301
Email : bajaj@del3.vsnl.net.in/ bajajmachines@vsnl.com
Web: www.bajajmachinen.com - M/s Narangs Corporation
P -25, Connaught Place
New Delhi -110001
Email: narangs@appexmail.com - M/s Larsen & Toubro Ltd.
L &T House, Ballard Estate,
Mumbai -400001
Web: www.larsontoubro.com
OTHER SPECIAL FEATURES
The facilities can also be utilised to manufacture fruit juices, fruit pulps, concentrates, fruit pastes & purees as well as vegetables juices & pulps for fuller utilisation of capacity.
Contact for more information
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
