There has been a remarkable growth in the demand for the juice concentrates due to the soaring popularity of new non-alcoholic and alcoholic fruit drink products, ice cream, yoghurt and baby food etc. A combination of fruit & vegetable syrups or concentrates are being used as flavors in all the above discussed product categories. 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, which are deemed to be most suitable for consumption ‘on the move’ as part of today’s busy lifestyles.
Further, 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 are demanding healthier 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 manufacturers are exploring new preservation methods like aseptic processing.
The primary objective of the model report is to facilitate the entrepreneurs in understanding the importance of setting up unit of Aseptic Juice Concentrate, technology and financial parameters of various components for preparation and submission of project proposal to bank for sanction of long term loan. This model report will serve as guidance to the entrepreneurs on starting up such a new project and basic technical knowledge for setting up such a facility
The project aims at establishing processing unit for preparing aseptic fruit concentrates. These concentrates are the residues, prepared after evaporation of water from fruit and vegetable juices in order to maintain quality, prolonged shelf life and optimize the transport and storage cost.
The area and production of major fruits in MP are given in the table below:
|
|
2004-05 |
|
|
Fruit |
Area (Ha) |
Prod (MT) |
|
Mango |
6,886.00 |
62,000.00 |
|
|
14910 |
238600 |
|
Mosambi |
236 |
3800 |
|
Lime |
1051 |
16800 |
|
Banana |
14941 |
597600 |
|
Guava |
2763 |
55300 |
|
Papaya |
684 |
18500 |
|
Grapes |
100 |
2500 |
|
Other Fruits |
6285 |
37700 |
|
Total Fruits |
47,856.00 |
1,032,800.00 |
These units can
be established in concentrated fruit production zones. Major clusters of fruits
production in the State are – Rewa,
According to the
International Federation of Fruit Juice Producers which includes eight member
countries (
The fruit juice industry has made good
progress in the country and according to trade sources:
§
The
total market for fruit drinks, Nectars has reported growth of 10 -15% per annum
in the past. The major players in this sector are Parle, Pepsi, Coke, On juice,
Real
§
The
Indian market for fruit juices is of approximately 150 crores, reporting the
annual growth of 25-30% per year.
§
The new
sector which has potential to be explored is combination of various products
like Fruit and milk combination, Fruit-yogurt drinks that are towards more
natural fortified drinks based on health and taste theme.
As per FAIDA
(Food & Agri. Integrated Development Action) report prepared by CII and
Mckinsey & Co. inc., currently fruit drink market has grown to Rs. 2000
crores in 2005 in
The industry is still confined to
small-scale level with share of home sector being 44 per cent, while cottage
and small scale sector contribute 33 per cent and large scale has share of only
9 per cent and real labeler being 14 per cent.
A project with rated capacity of 2100 ltrs
per annum of aseptic juice concentrate.
§
Plant
operation considered for 300 working days and 20 hrs working per day
§
Plant
can process fruit juices, fruit pulps conc., fruit pastes & purees as well
as some vegetables juices & pulps.
§
Aseptic
filling and packing is recommended for sale of products in international
market. Processing & utility equipments are available indigenously.
Manufacturing of fruit juices/pulps and concentrates by canning and vacuum concentration method has been in practice for many years. Canned fruit juices & concentrates have maximum shelf life of one year. Further, there are chances of deterioration of products packed in cans by either development of pressure inside the can or bacterial contamination. Therefore, new technology of aseptic filling and packing is adopted today worldwide for avoiding these chances. For maximum extraction of juice and pulp, hot break system is considered better process which is recommended in this project.
During last seventy year methods for concentration of food liquids have been developed. Among these, Evaporating Concentration, Freeze Concentration and Membrane Concentration (or Reverse Osmosis) are commercially exploited. As freeze concentration and membrane concentration are very expensive technology, here evaporating concentration technology is considered. In evaporating concentration also 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 kgs/hr and water requirement of 5000 liters/hr ( water requirement can be brought down to negligible level if cooling tower is installed). In evaporator, juice is subjected to heating at 100°C under vacuum to concentrate from 25°C to 60°C. Vacuum concentrator is equipped with aroma recovery unit. The exit temperature for concentrate will be 15°C and then is allowed to cool at 10°C. The concentrates are then stored in 3.1 liters cans, 200 liters carboys or 220-240 Kgs. drums.
Process for manufacturing baby food: Puree or paste of Banana, Carrots, Guava etc. are mixed together in mixing & standardization tanks, where other ingredients are also added along with the required amount of water and preservatives. Thus prepared pasted is then homogenized, pasteurized and filled into cans or bottles.
Baby food thus prepared is highly nutritious
and in
§
Starting
from feeding of raw materials into processing line to packing of final product,
all stages of process need careful handling, precise controlling of processing
parameters, avoiding of bacterial contamination and strict maintenance of plant
and personal hygiene, are extremely necessary.
§
The key
factors influencing concentration of fruit pulps/juices are rheological
properties of fluid fruit products, evaporation rate, fouling, heat sensitivity
of fluid fruit products and steam and cooling water consumption.
§
Great
care is required for retention of aroma for which an efficient aroma recovery
process needs to be installed with the plant.
§
Operation
of aseptic filling and packing system need careful handling and observance of
strict hygienic standards in that particular closed area or room.
Major components of the projects and their costs are described in the
table hereunder:
|
Particulars |
Unit |
Qty |
Cost/unit |
Total |
|
LAND
& BUILDING |
|
|
|
414.25 |
|
Land |
SqM |
10,500 |
250.00 |
26.25 |
|
Land
Development |
|
|
|
|
|
Land
Area |
|
10,500 |
500.00 |
52.50 |
|
Building |
|
|
|
|
|
Production
Block |
|
|
|
|
|
Main
Production Area |
SqM |
3,000 |
5,000.00 |
150.00 |
|
Store
cum packing room & Sales Counter |
SqM |
2,500 |
5,000.00 |
125.00 |
|
Misc
Handling Area |
SqM |
1,500 |
2,000.00 |
30.00 |
|
Contingencies |
|
10% |
|
30.50 |
|
PLANT
& MACHINERY |
240.00 |
|||
|
PLANT
& MACHINERY |
LS |
1 |
20,000,000.00 |
200.00 |
|
Contingencies |
|
20% |
|
40.00 |
|
MISCELLANEOUS
FIXED ASSETS |
|
|
|
30.00 |
|
Misc.
Assest |
LS |
1 |
2,500,000 |
25.00 |
|
Contingencies |
|
20% |
|
5.00 |
|
PRE-OPERATIVE
EXPENSES |
|
|
|
25.19 |
|
Establishment |
|
1 |
1,070,000 |
10.70 |
|
Pre-
Operative Interest |
|
1 |
969,100 |
9.69 |
|
Security
Deposits |
|
1 |
480,000 |
4.80 |
|
TOTAL |
|
|
|
709.44 |
The total cost of the plant and machinery is Rs. 240 Lakhs.
The main production block will cost around Rs. 335.50 lakhs.
A provision of Rs. 30 lakhs would take care of all the
requirements.
A provision of Rs. 25.19 lakhs would take care of
pre-production expenses like establishment, professional charges, security
deposits etc.
|
ITEMS |
Year 1 |
Year 3 |
Year 5 |
|
STOCK
OF RAW MATERIAL & PACKING MATERIAL |
70.88 |
94.50 |
94.50 |
|
SUNDRY
DEBTORS |
192.38 |
256.50 |
256.50 |
|
TOTAL |
263.25 |
351.00 |
351.00 |
|
MARGIN |
65.81 |
87.75 |
87.75 |
|
MPBF |
197.44 |
263.25 |
263.25 |
|
INTEREST
ON WC |
21.72 |
28.96 |
28.96 |
|
EQUITY
CAPITAL |
|
|
43.55% |
337.63 |
|
MOFPI SUBSIDY |
25% |
50.00 |
6.45% |
50.00 |
|
TERM
LOAN |
|
|
|
|
|
FINANANCIAL
INSTITUTIONS |
|
10.00% |
50.00% |
387.63 |
|
-Payable
half yearly Installments |
10 |
38.80 |
|
|
|
TOTAL |
|
|
100% |
775.25 |
|
PARTICULARS |
Year 1 |
Year 3 |
Year 5 |
Year 7 |
|
SOURCES
OF FUNDS |
|
|
|
|
|
EQUITY
CAPITAL |
- |
- |
- |
- |
|
SUBSIDY |
|
|
|
|
|
NET
PROFIT |
121.28 |
182.53 |
177.24 |
174.05 |
|
(INTEREST
ADDED BACK) |
|
|
|
|
|
DEPRECIATION |
39.43 |
39.43 |
39.43 |
39.43 |
|
PRELIMINARY
EXP.W/O |
3.60 |
3.60 |
3.60 |
3.60 |
|
INCREASE
IN TERM LOAN |
- |
- |
- |
- |
|
INCREASE
IN BANK BORROWINGS-WC |
197.44 |
26.33 |
- |
- |
|
TOTAL |
361.74 |
251.88 |
220.27 |
217.08 |
|
PARTICULARS |
Year 1 |
Year 3 |
Year 5 |
Year 7 |
|
LIABILITIES |
|
|
|
|
|
EQUITY
CAPITAL |
337.63 |
337.63 |
337.63 |
337.63 |
|
RESERVES
& SURPLUS |
110.80 |
337.48 |
608.45 |
898.35 |
|
TERM
LOAN |
348.83 |
193.63 |
38.43 |
- |
|
BANK
BORROWINGS-WC |
197.44 |
263.25 |
263.25 |
263.25 |
|
TOTAL |
994.69 |
1,131.99 |
1,247.75 |
1,499.23 |
|
Particulars |
Year 1 |
Year 3 |
Year 5 |
Year 7 |
|
INCOME |
897.75 |
1,197.00 |
1,197.00 |
1,197.00 |
|
EXPENDITURE |
733.45 |
971.44 |
976.73 |
979.92 |
|
VARIABLE |
585.01 |
775.96 |
775.96 |
775.96 |
|
FIXED |
148.44 |
195.48 |
200.77 |
203.96 |
|
GROSS
PROFIT |
164.30 |
225.56 |
220.27 |
217.08 |
|
PROFIT
BEFORE TAX |
60.80 |
128.39 |
138.62 |
145.10 |
|
RETAINED
PROFIT |
60.80 |
128.39 |
138.62 |
145.10 |
|
NET
PRESENT VALUE at current Inflation (Rs. in lakhs) |
1,032.43 |
|
INTERNAL
RATE OF RETURN % |
25.06 |
|
AVERAGE
DSCR |
2.06 |
|
BREAK
EVEN POINT % |
65.54 |
|
PAY
BACK PERIOD ( YEARS) |
4.74 |
|
PARTICULARS |
NO. |
|
|
SUPERVISORY
STAFF |
|
|
|
|
GENERAL
MANAGER |
1 |
|
|
PRODUCTION
SUPERVISOR |
3 |
|
|
MARKETING
MANAGER |
1 |
|
|
ACCOUNTANT
/ STORE KEEPER |
4 |
|
WORKERS |
|
|
|
|
SKILLED
WORKERS |
3 |
|
|
SEMI-SKILLED
LABOUR |
6 |
|
Project & Financing |
|
|
|
|
Contingencies on Building |
|
|
10% |
|
Contingencies on Equipment |
|
|
20% |
|
Term Loan |
|
|
50% |
|
Rate of Interest on Term
Loan |
|
|
10% |
|
Subsidy Considered |
Subject to ceiling |
|
25% |
|
Expected time of
Installation |
|
Months |
10 |
|
Moratorium |
|
Months |
6 |
|
CAPACITY |
|
|
|
|
Rated Capacity Per Annum |
80% of Installed capacity |
TPA |
2100 |
|
Number of Operational Days |
DAYS |
|
210 |
|
Working Hours Per day |
Hrs |
|
20 |
|
CAPACITY UTILIZATION |
|
|
|
|
Year I |
|
|
75% |
|
Year II |
|
|
90% |
|
Year III |
|
|
100% |
|
SALES PRICE |
|
|
|
|
W S Price |
|
|
57000 |
|
OTHER EXPENSE |
|
|
|
|
Commission |
|
|
10.0% |
|
Marketing Expenses |
|
|
2.5% |
|
POWER |
|
|
|
|
Connected Load |
HP |
|
120 |
|
DEPRICIATION AS PER
COMPANY’S ACT |
|
|
|
|
BUILDING |
|
|
3.34% |
|
PLANT & MACHINERY |
|
|
10.34% |
|
MISC. FIXED ASSETS |
|
|
7.07% |
|
LAND & SITE DEVELOPMENT |
|
|
1.63% |
|
MAINTENANCE |
|
|
|
|
BUILDING |
|
|
1.00% |
|
PLANT & MACHINERY |
|
|
3.00% |
|
MISC. FIXED ASSETS |
|
|
2.00% |
|
LAND & SITE DEVELOPMENT |
|
|
1.00% |
§
Alfa Laval India Ltd. Dapodi, Pune-411012
§
FMC
Asia pacific Inc, Saki Naka, Mumbai-400072
§
Larsen
and Tourbo Ltd., Powai works, Mumba-400072
§
Mather
& Plant (
§
SSP
Pvt. Ltd. DLF
The actual cost of projects may deviate on change
of any of the assumptions.