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MARKET ANALYSIS

MARKET ANALYSIS SUMMARY:


One can sense an evolution that the industry has seen with development in the tetra- pack
market, there also has been a natural progression from drinks to nectars to juices and
while traditionally fruit drinks were aimed at children, the new brands like Onjus, Real,
and Life have focused on young adults and professionals
!lthough fruit drinks focus strongly on out of home consumption, the juices and nectars
have been concentrating on takeaways or in-home consumption with more choice coming
in, the tetra- pack market is likely to witness further segmentation
"ackaged fruit juices are getting recogni#ed as social drinks now, with dominant
consumption being observed in the company of family and friends "eople have started to
perceive fruit juices as anytime beverages, with consumption being spread more or less
evenly between the mid mornings, afternoons and evenings !nd generation now is as
much inclined to sipping fruit juices as colas, with teenagers driving the ma$imum trials
%f the findings of a usage and attitude study conducted by market research agency %ndica
Research across &'(( adults in )ec ! and )ec * households in +elhi and ,umbai are
anything to go by, then its not just champagnes and colas that -ualify as social beverages
The results of the research can be briefly put as follows:
!mong packaged fruit beverages, the awareness to trial, ratio of "epsi.os /ropicana
juice brand has been rated the highest 0p to &12 of the respondents were aware of
/ropicana, while the brands trial stood at &&2, also, 32 of the respondents stocked
the brand at their homes Other parameters where /ropicana edged out competitors
included taste, health, purity and nutrition, according to the study, /ropicana was also
perceiver as reasonably priced
/he average %ndian may have a legendary weakness for mango, but when it comes to
preference of fruit-based juices4 his choices are in tune with international trends
/herefore it is orange juice that is the most preferred fruit juice flavour in %ndia,
followed by apple, sweet orange and mi$ed fruit
/he findings indicate that most packaged juice drinking consumers travel abroad on
holidays
Other attributes of branded juice consumers include employment of domestic help,
ownership of assets and credit cards, and health consciousness with 3(2 respondents
going to aerobic classes or working out at gymnasiums
0nderstandably therefore, awareness and trial levels of packaged juices are higher
within the )ec ! category, than among )ec * consumers, the majority of whom rated
these as aspirational
!wareness levels are similar in both ,umbai and +elhi4 more trials are generated by
+elhities than their counterparts in ,umbai
/he consumers are starting to perceive fruit juices at home 5hile 662 of the
respondents consumed &- litre packs at home, 762 consumed '((ml packs
/he fruit beverage market has more acceptances in 8orthern and 5estern %ndia, which is
due to the climatic conditions prevailing there with relations to the rest of the country
MARKET SEMENTATI!N:
/here has been no general acceptance of the product forms in the fruit beverage market
/he consumer is basically concerned if it is a fruit juice or synthetically constituted
product "roduct segmentation, therefore, should be clearly delimited
0nder the fruit drinks the first segmentation is between real fruit "rin#s an"
synthetic "rin#s$
/he real fruit drinks are based on natural fruit pulp or juice
/he synthetic drinks are synthetic products with fruit or other flavors
*road taste preferences could be another way to define the market /he market is at
present also segmented on the basis of fruit pulp content 9or the purpose of
segmentation, on the basis of fruit pulp content$ 9or the purpose of segmentation, on
the basis of fruit pulp content, market can be segmented as:
Fruit juice with pulp content more than 3(2 *rands falling in this category
are Onjus, Real, /ropicana, etc
Fruit Nectar with pulp content between 7(2 to ;(2 Life and <s come in
this category
Fruit Drinks with pulp content less than 7(2 9rooti and =umpin are the
popular brands in this category
)egmentation could also be on the basis of the benefits provided to the consumer:
One benefit could be the nutrition content it gives to the consumer so one
market could be the health%conscious se&'ent
)econd benefit is thirst (uenchin&, so the other segment could be those
buying the drink or nectar for satisfying the thirst
!nother very broad segmentation can be on the type of situation in which the drink
or nectar is use":
"eople who are on the move ie Outdoor use eg those traveling
"eople who are using it on the breakfast table as a part of their menu ie in%
house use$
"layers very often choose one or more of such segmentations to differentiate their
product and target market and accordingly plan their distribution and promotion patterns
MARKET NEE)S:
.onsumers usually, are not going to accept something that doesnt taste good even if it is
good for them or has certain benefits .ompanies working to bring a new food product to
the market have two -uestions>does it taste good and will consumers buy it?
MARKET TREN)S:
/ropical fruits and flavours dominate the market, yet some consumers are still hesitant to
try unknown e$otic flavours like cherimoya, guanabana and carambola .ompanies have
found the best way to introduce e$otics is in combination with familiar flavours !
flavour combination that began in the new age, 62 to &(2 juice category, and has spread
to other beverage categories as well as to other products like kiwi, strawberry, etc stating
that it was a small company that took the risk and won
)maller companies lead the way, as they are more willing to try e$otic flavours even
though the larger companies have a larger staff and budget, and can afford to search out
the trends /he large companies tend to introduce prototypes that are pretty well-tested
/hey are always interested in the ne$t flavour trend, but usually are not the first to debut
it
9ortified drinks are also gaining market ie the juice is processed and an additional
nutritious trait is added to enhance its wholesome value eg with additional calcium,
vitamin . etc
One can notice the population in the country mainly in the cities becoming more and
more aware with regard to the nutritional aspect of life /his knowledge, coupled with the
consumers desire for a healthier lifestyle, has greatly impacted the evolution of juice and
juice-based drinks over the last few years
IN)USTRY ANALYSIS:
/he Rs &(( crore packaged fruit juice market is estimated to be growing at '(2 to '62
annually, with /ropicana and Real holding 7(2 market share each
/he market can be categori#ed in terms of product content and there are three major
product contents available
)rin#s: =uice with pulp content less than 7(2,
Nectars: =uice with pulp content between 7( - 3(2,
*uices: =uice with pulp content more than 3(2,
/he canned juice market initially covered brands like 8!9@+, 8oga, ,idland, Aold
.oin and +ruk /hese were fruit juices and nectars and not drinks *ut they did not make
a mark in the market due to reasons such as high price, unattractive packaging and lack of
right promotion programme
"arle !gros 9rooti, a mango drink, was introduced in the tetra pack in &B36 and since
then has been a leader in its segment /he market has suddenly picked up since &BB7-B6
and a few players have emerged as market leaders
LEA)IN MANU+A,TURERS !+ +RUIT -E.ERAES IN IN)IA:
,o'pany -ran" +la/ours
& "arle !gro 9rooti ,ango, Auava, "ineapple,
)trawberry C Orange
!ppy !pple
' "epsi.o Ltd /ropicana Orange, 8ature )weet, !pple,
Arape, "ineapple, /omato, ,i$ed
9ruit
)lice ,ango, Litchi, Orange C Auava
D +abur Real Arape, Auava, Orange, "ineapple,
/omato, ,i$ed 9ruit, Litchi,
,ango
Real !ctive Orange, !pple
7, Aodrej 9oods =umpin
Re
<s
Orange, !pple
Orange, !pple
Orange, !pple
6 .oca .ola ,aa#a ,ango
E **% %% /ree /op ,ango
1 Foltas Folfruit ,ango
3 Gindustan Arapy Red Arapes, Litchi, etc
B G" !gri G",. !pple ,arketing
&( 8orth @ast !gro ,kt Ltd 8@R!,!. "ineapple
&& Herala ,ilk ,kt ,ilma ,ango, "ineapple
&' )alstar 9oods Regold ,ango, !pple ,i$ed
&D ,ohan ,eakins Aold .oin !pple =uice
&7 ,odern 9oods Rasika ,ango, Auava
&6 @astern 9ruit @fil ,ango, Litchi
&E 8!9@@+ 8afed !pple, ,ango, "rocessed Auava,
"ineapple, Orange
&1 Fadilal %ndustries Ltd Fadilal ,ango, "ineapple, Orange
&3 Gimgiri 9oods Gimgiri ,ango, "ineapple, Orange
&B Lakhanpal 9oods F!9! ,ango, "ineapple, Orange
'( 5%,.O Ltd )unsip /ropical 9ruits Hioces
'& /ims "roducts /%,) ,ango, "ineapple, Orange, Auava
'' *@. foods ROLI ,ango, ,i$ed 9ruit =uices
'D /he ,aharashtra %nds
+evelopment .orp Ltd
8OA! "ineapple !gro
J/he above mentioned list consists of the brands noticeable in metros and as such there
are a large number of small canning units scattered all over the country catering to niche
marketsK
! host of brands are jostling for thirst space 8ot just colas but beverages and fruit juices
of all hues are adorning shop shelves 9rom bottled iced-tea to branded chhaas, fruit-
based drinks and flavoured milk, beverage makers have gone berserk with product
innovation as new variants continue to flood the market
9ruit drinks are high on the swig list in summers as it is part of the health fad sweeping
the nation Gealth conscious consumers are increasingly giving aerated drinks the go by
and making a beeline for fruit-based concoctions ,oreover, sporadic controversies about
pesticide-infested cola drinks are said to be driving consumers towards fruit-based drinks
as a safer alternative /hat is why even e$isting players are going all out to pour out new
flavours
)A-UR:
+abur 9oods that was set up in &BB1 has brands like Gommade, Lemonee# and .apsico
in its basket /he Rs D1 crore +abur 9oods ltd, a wholly owned subsidiary of +abur
%ndia ltd ahs two brands of juice in the market, they are4
Real
Real !ctive
9or its Real brand, +abur is focusing on increasing in home consumption by targeting
mothers and children %t is priced in the range of Rs E( to E6 J& literK and Rs &6 J'((mlK
e$cept for Auava that is sold in the range to Rs E6 to 1( and Arape that is sold for Rs 1(
to 16 %ts ingredients are water, fruit concentrate, sugar, citric acid and flavours of4
Arape, Auava, Orange, "ineapple, tomato, ,i$ed 9ruit, Litchi and ,ango
/he Real Acti/e brand is targeted towards fitness- cra#y young consumers /he drink is
positioned on the health plank %t was launched towards the end of '((' !t the same
time, the company plans to position Real !ctive as its premium juice brand, while Real
would be targeted at consumers belonging to socio economic categories * and . also %t
contains only fruit concentrate and water %t is priced at Rs E3 and 1( %t is available in
the 9lavours of4
!pple and orange
/he company was eyeing a turnover of Rs E( crore in the year '((& -(', which is an
increase of nearly 6(2 !ccording to the company it ahs seen a growth of 772 in the
financial year '((&-(' as compared to D72 in '(((- (& /he company plans to increase
the advertising spends for the brand by nearly 7(2 /oday the advertising and marketing
budget for the brand by nearly Rs 3 .rore /he companys thrust is on increasing in-home
consumption therefore they are mainly targeting the mothers and children
Gowever, the company has restricted its activities in the urban areas only and wishes to
fully consolidate markets in the cities before looking at the small towns and rural areas
+abur 9oods claims to be the market leader in the pure juice category such as "unjab,
+elhi, Garyana, etc
0epsi,o:
/he "epsi operations in %ndia are now the part of the new !sian division of "epsi.o
*everages %nternational formed by the merger of "epsi.ola %nternational, /ropicana and
Aatorade, the sports beverage company ac-uired from Luaker Oates @arlier, %ndia was
one of the eight business division of the beverage company that used to report to "epsi.o
%nternational in 8ew Mork directly 8ow it reports to "epsi.o *everage %nternational !sia
in Gong Hong "epsi.o *everage %nternational is a division of "epsi.o %nc /his move
has been prompted by the need to give greater regional focus to new products like
/ropicana and Aatorade so that they become a key element of the overall portfolio of the
0) beverage major
"epsi.o %nc is one of the worlds largest food and beverage companies /he companys
principle businesses include:
9rito N Lay snacks
"epsi-.ola beverages
Aatorade sports drinks
/ropicana juices
Luaker 9oods
"epsi %ndia is already working on a strategy to launch a bevy of Aatorade products in the
country by the end of this year /hese are as follows:
Aatorade /hirst Luencher
Aatorade 8utrition )hake
Aatorade @nergy +rink
"ropel 9itness 5ater
Aatorade @nergy *ar
%t is also planning to give a major thrust to the juice business through the launch of a host
of new products under the /ropicana brand name ie on the health and energy platform
"epsi.o has so far invested around Rs &(( .rore inn ready to drink juice segment where
the company has two brands /ropicana C )lice %t has &7 plants in %ndia producing fruit
juices C ' of them work on tetra pack
Tropicana:
/ropicana entered the country in &BB3 /ropicana is currently imported in a concentrated
form, which is later reconstructed at a plant in *aramati, near "une and vacuum packed
into tetra packs after paying an import duty %t covers around &3 cities of %ndia /he factor
of its success is that it has a tightly controlled distribution system on top of an e-ually
controlled production and this in turn helps it keep its taste constant and the company
boasts of it too
/ropicana *everage .o recently announced the companys inclination towards bringing
in an entire series of juices and other health drinks from its international portfolio into
%ndia in the coming years /he /ropicana brand, per se, has been positioned on the
health platform
"epsi also plans to give its juice brand N which has seen many hurdles in the nascent and
niche juice market N a renewed thrust in the coming days ! price revision of the brands
is also on the anvil
)ince '((&, /ropicana roped in celebrities in the field of nutrition and health to sell its
brands 0nder which they got renowned people in the field of health to recommend their
clients to use their brand /he list of names included the likes of !njali ,ukherji, )abina
)ehgal )aikia and Fandana Luthra, who promote the brand, positioned as a health drink,
to their upwardly mobile clientele @ven celebrity doctors and pharmacists were included
in its list of marketers /ropicana is also sold through various health clubs like
/alwalkars, "ersonal "oint, etc in ,umbai and +elhi %n the past as a part of its
promotional activities, the company had conducted a /ropicana Gealth Run in the
capital, slated for 5orld Gealth +ay, which was on !pril 1, '((& /ropicana also runs a
programme called /he /ropicana .lub under which every time one buys a pack of
/ropicana he earns points which he can collect and e$change for a wide range of gifts
and also, as a member he gets uni-ue offers, e$citing gifts and interesting information on
keeping fit and looking good
/he company is seen to intensify its distribution network, with a greater thrust on large
institutions !part from retail and consumer N level promotions, /ropicana is being
promoted through health bulletins and health leaflets /he company intends to continue
with its unconventional retail thrust !part from the '(,((( to '6,((( outlets across &3
cities that /ropicana has a presence in, the brand is being placed across gymnasiums,
fitness centers in 6-star hotels, coffee shops, airlines, hospitals, offices and health stores
/hese points of consumption are not conse-uential in providing high volumes, but
important from the imagery point of view /ypically, non-retail stores have been
contributing &' N &6 2 of the brands sales /ropicana evokes a high brand loyalty among
health N conscious middle and upper-middle class segments /he company is seeking to
project itself on the health platform and has an ad spend of around '(2 of its sales
/he brands e$isting tagline of /aste of Aood Gealth has now got an e$tension
statement of +ont forget the juice, /ropicana &((2 pure fruit juice /ropicana is
packaged in a '(( ml slim pack Jwhich replaces its '6( ml packK and &-liter in a flat pack
tetra pack /he company is seen to run promotions in coordination with its other offering
like a scheme where &E gm pack of Lays ,agic ,asala that comes free with a '(( ml
pack of /ropicana 5orldwide, /ropicana has a host of juice brands under its belt *rands
like /wister, +ole, Loo#a, 9ruvita and =uice *owl, which could find their way into the
%ndian market in the coming years %t has decided to make changes in the composition of
its juices to suit the %ndian taste buds 9or instance, reali#ing that %ndians like a sweet
flavour, it decided to launch a separate sweet orange juice product specifically for the
%ndian market )ince it could not dilute its juice content, it decided to substitute part of it
with grape juice to make it sweeter @ven its launched tomato and mi$ed fruit juices have
been altered to suit the %ndian palate
.urrently, in terms of market share, /ropicana is believed to trail behind rival Real
O+aburP but is not far behind and also has close to 7(2 market share of the estimated Rs
&(( crore branded juice market
"epsi sets the pace for backward integration of /ropicana, as a first step towards
backward integration for its pure juice business /ropicana is foraying into contact
farming of citrus fruits like oranges and Heanu "unjab- =allowal N has been chosen as the
location for the project /he D phase project involving trials, nursery and contract
farming, is being pursued jointly by "epsi and the "unjab !gro @$port .orporation
/hrough in its infancy at the moment, the project vision however is of about seven years
%f successful, it would mean &((2 locali#ation of orange juice and it becoming the
supply center to other regions
! present /ropicana has the following flavours:
Orange, 8ature )weet, !pple, Arape, "ineapple, /omato, ,i$ed 9ruit
Slice: "epsi.o in '((' poised to make deep inroads into juice drink segment in %ndia
with seven new variants of its )lice brand 9or the first time in companys history, a
Litchi variant of )lice was introduced !part from that, a guava and Orange flavours
was also being offered !part from '(( ml slim line cartons priced at Rs &( each, )lice
juice drinks is subse-uently made available in '6( ml returnable glass bottles as well
/he company invested significantly to bolster the )lice brand in the year '((' and plans
to invest heavily through the year while )lice is now available in litchi, orange, mango
and Auava flavours, they are e$pected to be soon joined by )lice .ocktails
"epsi.o is sourcing litchis from ,u#affarpur, guavas from Harnataka and !llahabad, and
mangoes from Ratnagiri
Man&ola: ,angola, the other fruit-based beverage in the "epsi.os list, has a healthy
presence in ,aharashtra "epsi 9oods ac-uired ,angola, originally a brand of +ukes,
when it officially stepped into the domestic market while ,angolas distribution is
restricted to ,aharashtra4 )lice is available in all markets
"epsi, in association with foods and toiletries major Gindustan Lever, launched Lipton
%ced /ea in returnable glass bottles and "@/ bottles %t has also introduced ,irinda in
apple and strawberry flavours "epsi had earlier said they planned to reduce their
dependence on cola and bring it down to 7( per cent of total sales in the ne$t few years
"epsi came on aggressively with its QOye *ubblyQ campaign .oca .ola promised
consumers a date with !ishwarya Rai with its Q/handa !ish .ashQ promotion %t also
promoted /hums0p through ,arch and !pril with its QGai +um?Q campaign featuring
*ollywood actor !kshay Humar
0arle A&ro:
"arle !gro "rivate Ltd is looking at product e$pansion in its various business segments to
sustain growth in a sluggish market %n the fruit drink segment where "arle !gro has a
hugely popular product ,ango 9rooti, it is planning to get into orange and pineapple
under the same brand of 9rooti 5hile orange pulp will be imported from *ra#il,
pineapple will be sourced from /hailand
!t the same time, it has also embarked on stretching the franchise of its e$isting brands>
9rooti, !ppy and *ailley ,ineral water %t knows the market and has sustained its brands
in spite of the huge unorgani#ed segment *esides, the company will use its e$isting
distribution network to get into the new categories !t the moment, its only advantage is
its distribution strength
"arle !gro boasts of a franchise network which few can match %t has two different sets of
franchisees for its packs O&& franchiseesP and mineral water O&3 franchiseesP that
manufacture and distribute its brands %t ahs also attempted to venture into direct
distribution by engaging special trucks to transport its brands to retail outlets 9or
instance, in ,umbai, it has 6( trucks plying between its factories and the outlets *esides,
future plans include introduction of the same direct distribution system for its franchisees
across the country
9lushed with funds after selling of its portfolio of soft drink brands, /humps 0p, Limca
and ,a##a and bottling facilities to .oca-.ola the company has enough cash and this is
evident since it has not got listed %t also has a massive distribution network to reach its
end consumer *esides, the goodwill of the "arle brand is a great help in its new ventures
/he fresh n juicy 9rooti brand, is dominating the packaged fruit based drinks category
since its launch in &B36 9rooti ,ango, which has 162 market share in tetra packs, grew
by a modest 72 in '((& according to ORA-,arg data Larger pack si#es O& literP and
more pure juices Osuch as orange and pineappleP would soon appear under the 9rooti
brand, taking on the e$isting competitors in these flavours and si#es N brands such as
/ropicana, Real and Onjus
9rooti has always been positioned as a drink for kids but now the company is looking
forward to position it as a drink for the youth, especially, the college going teenagers
/his was the basic rationale behind the +igen Ferma .ampaign, where a real life, down
to earth person, who, like any college student likes to bunk classes, is a good sportsman
and is a popular figure in the college, with whom the teenagers could actually associate
themselves with +igen Ferma
"arle !gros product portfolio includes !ppy, 9rooti and 8-=oi Oa milk base drink, which
are priced at Rs &( 8ew "@/ bottles have been introduced in & liter and 6(( ml for
mango 9rooti at a price of Rs '3 and Rs &3 respectively %t has recently introduced a
green mango flavour in the tetra pack and is also priced at Rs &( "arle !gros has an
enormous distribution reach of &( lakh outlets, including leading hotels and restaurants,
eateries, super N markets, and paan-shops ,eanwhile, "arle !gro is planning to tap the
rural markets with its strongest brand 9rooti /here are plans to set up a separate
distribution in the product itself
%n keeping with market sentiments, cola biggies .oca .ola and "epsi, too, are focusing
on innovation in their non-cola portfolio .oca .ola has launched ,aa#a in pineapple
and orange variants in &'6 ml tetra packs and large family packs %t recently started a new
facility in *areilly to cater to the growing demand for ,aa#a in north and central %ndia %t
is learnt that the company is also set to launch some QnicheQ products
"arle !gro has seen a trend towards fruit-based products "arle !gro spent Rs 6 crore ORs
6( millionP to relaunched its flagship mango drink, 9rooti, with modified packaging and a
new ad campaign %t launched a guava drink, 9rooti Auava, in ,umbai and other western
regions in E6ml packs priced at Rs '6( /he company is now out with !ppy 9i##, an
aerated apple drink in champagne-shaped "@/ bottles Launched in *angalore, it is being
rolled out in Holkata and .hennai in 6(( ml and D(( ml packs retailing at Rs '6 and Rs
&3, respectively /he E( million case fruit beverage market never had it so good Of the
Rs 1,(((-3,((( crore ORs 1(-3( billionP drinks market, fruit beverages account for Rs 6((
crore ORs 6 billionP, growing at '6- D( per cent annually Like most drinks, summer
accounts for E6 per cent of total sales
o"re1:
Aodrej 9oods Limited is into the business of manufacturing and selling processed foods
and trading of vegetable oil /he company has a number of leading cooking oil brands
like .ookLite, Aodrej and fruit juice brands like =umpin, <s, refresh in its product
portfolio /he companys main source of revenue is its oil trading business, which makes
performance of its business highly dependent on commodity price trends
%t has D fruit beverage brands in its product portfolio, while =umpin and <s are national
brands, Refresh is available only in states of 0" and Rajasthan
*u'pin:
=umpin brand is positioned as a fruit drink %t is available in the flavours of orange,
pineapple, apple and mango =umpin is available in '((ml and the price for all the
flavours are Rs &(
2s:
<s is targeted towards adolescents positioned as nectar drink <s is available in following
flavours litchi, mango and guava and it is priced at Rs &6 for the '6(ml pack
Refresh:
Refresh is positioned as a mass market drink but targeted towards adults
Aodrej %ndustriesR foods division with its <) fruit juice launched in &BB3 in litchi, guava
and mango flavours @$otic blends of Aodrej include fruit juice *erry *last Ostrawberry-
cherry-black currantP and /riple /ickle Oapricot-peach-appleP /he new range is priced at
Rs &6 for '(( ml and RsE6 for &((( ml Aodrej 9oods, Q/he idea is to come out with
e$otic flavours that will combine great taste with attractive packaging for the youthQ
5ith the new offerings, he e$pects to see a D(-7( per cent rise in sales
U*ARAT ,!%!0ERATI.E MILK MARKETIN +E)ERATI!N:
3A'ul4
"itching in to pose further competition to the colas is the recent launch of A'ul ,asti
chhaas by the u1arat ,o%operati/e Mil# Mar#etin& +e"eration !mul has also added
two new variants -- strawberry and mango flavours -- to its milk drink brand !mul .ool
!mul are currently selling 7((,((( units of !mul .ool per day with si$ flavours /hat is
'D per cent higher than last summer, when they had just four flavours .oming ne$t from
the !mul stable is .ool .afe, a coffee drink to be launched in ,umbai, +elhi and
Aujarat
Retailers, however, say that while such efforts lead to a temporary revival in offtake, sales
tend to slacken once the promotions end
+RUIT *UI,E ,!N,ENTRATE 0LANT
Intro"uction
/he changing food habits and increased e$port has boosted the demand side of bottled
fruit juice both in the domestic market, institutional market Ohotels, hospitals, airlines and
defenceP
/here is a growing demand for orange, pineapple and apple juice both in the domestic
and international market /he demand of high aromatic passion fruit juice in the
@uropean and !merican market is also very encouraging
,i#oram has good e$isting production of passion fruit
uice )torage /ank
9illing and "ackaging
.ooling and )torage
%n the following pages the process flowchart and brief description of the various
"rocesses involved in fruit juice production are outlined
Fruit Juice Production Process
9ruits boiler where it is cooked and shifted to the plate heat e$changer /hen stored in the
storage tank /hen supplied to the mi$ing tank in the desired -uantity while in mi$ing
tanks4 any additives to the are made at this stage before it is pumped to syrup storage
tanks *lended juice is then pumped through pasteuri#er4 where it is heated to B(o. to
inactivate en#ymes and living organism !fter pasteuri#ation the juice passes through
final filtration, before loading it into a juice storage tank =uice from the tank is ready for
packaging
Packing and labeling then storage.
/he juice will be then packed in the -uantities demanded by the market .onsumer packs
as like '((ml and &(((ml tetra pack and then label the nestle juices "roduct will be in
cool dry store
0rocess
/he farm arrived fruit are first washed than sorted for inspection 9rom inspection
conveyor the fruit is passed on to fruit mill for crushing and than to hydraulic press for
juice e$traction
@$tracted juice is than filtered though press filter and again sent to centrifuge for
clarification
/he clarified fruit juice is concentrated in evaporation plant
/he concentrated juice is sterili#ed in plate heat e$changer by heating
/he sterili#ed juice in the hot condition is aseptically packed in aseptic bags by aseptic
bags by aseptic filling packing machine
0lant capacity 5 !bout '6(( kg per day fruit juice concentrate of orange and passion
fruit
0lant e(uip'ent% %nfeed fruit conveyor, fruit washer, fruit mill, screw pre heater,
hydraulic press, pulper, press filter, sugar syrup preparation kettle, aerator, tubularS plate
sterili#edS pasteuri#er, jacketed storage tank and filling machine
Lan" re(uire'ent 5 !bout 7(( m' developed land will be re-uired
-uil"in& an" ci/il wor# % !bout &6(( m' floor space is sufficient for running the plant
conveniently
0ower re(uire'ent % /otal connected load of about D(( H5 will be re-uired
6ater re(uire'ent 5 !bout 7( HL of fresh water will be re-uired every working day
E'ploy'ent % !bout 16 persons
Raw 'aterial 5 !bout 1-3 ,/ orange or passion fruit every day
Turn o/er 5 Rs &3((( lakhs pa
Esti'ate" 0ro1ect ,ost 3with out cost of procurin& lan"4
0articulars Rs$ La#hs
Land development cost 7((
*uilding E(((
%nfrastructure &6((
"lant and ,achinery 16((
Other !ssets B((
/echnical fees 76(
"reliminary "re-operative e$penses 3DE
,argin ,oney B((
.ontingency 6&7
Total 0ro1ect ,ost 3appro74 89:$::
+RUIT 0R!,ESSIN
0R!)U,T ; USES:
"reservation of fruit in one form or the other has been practiced in all part of the world
from time immemorial Gowever the industry got real fillip around &BD( in %ndia /he
processing industry has been of great help in overcoming regional and seasonal gluts and
scarcities, and in stabili#ing prices !lso, fruits and vegetables produced anywhere can
now be made available all over the world in or out of seasons
/he main causative agents of spoilage of fruit and vegetables are bacteria, moulds, yeast
all certain en#ymes /he preservation techni-ue aims at partial or completed destruction
of these agents /he causative agents may be inactivated to their growth and activities
/he causative agents may be inactivated by free#ing the food at low temperatures O-&1 to
(&'( (cP, or by completely destroyed by heating at high temperature O&(( N &'( (cP
MARKET 0!TENTIALITY
!t present &6 ,icro unit are producing =am, =elly "ickles and marketed locally ,ost of
the units are in home scale and without 9"O -uality standard /he consumption of =am,
=elly and "ickles are increasing due to urbani#ation of families
/he consumption of =am C =elly and pickles is around 6 kg C '( kg !nnually
considering an average family si#e of E numbers in urban household area
9ruit processing industries in 8@R is not fully organi#ed most of the units are Gome
scale unit without 9"O -uality specification due to which they have to sale their product
locally *y over coming these constrains, a few good units in semi-urban area or in town
area with infrastructure facilities for processing fruit and few micro half processing fruits
home scale units may come-up as a sub-sectors to support to these units and to utili#e
available resources during season times /his type of half process unit will come with a
minimum investment of Rs &(,(((S- to Rs '(,(((S- and they may earn Rs &,6((S- to
Rs 7,(((S- depend on their value addition materials
/he demand from such product generate from three sector :
!rmy C +efence
Gotel, .atering services and !irlines
.ivilians
*esides, there is e$port potentialities /he e$port can be formulated by !"@+! O!gro
"roduct 9ood @$port +evelopment !uthorityP
0R!)U,TI!N TARET:%
%nstalled .apacity : D(( Hg per day and E( ,/ per year in single shift
0tili#ed .apacity : EE ,/ per annum
"roduct ,i$ : 76:E(:6
=am : &77 ,/
=elly : &E' ,/
)-uash : '&E ,/
"ickles : &3 ,/
-ASIS ; 0RESUM0TI!N :%
)ingle shift of 3 hours per day
'(( days per year
Raw Materials : !ll re-uired materials are indigenously available /he annual
consumption of materials is as follows for proposed production capacity
9ruits C Fegetables : D&6 tones
)ugar : 7E tones
.itric !cid : ((&' tones
)alt : ((6 tones
"ectin : (((D tones
.olours : 1' liters
@dible oil : (DE tones
)odium *en#onate : ((1' tones
H,) : ((DE tones
@ssence : (&7 tones
,asala powder : ('1 tones
0R!,ESS !+ MANU+A,TURE : /he fruits are washed peeled and sliced and send
for production of =am, =ellies, )-uashes and "ickles
*a' 5 /he fruit are placed in a slam jalleted shallow kettle and the stem is turned on the
product generally cooked to a temperature of E6 P. to (. to 13 (. as determined by the
preserve thermometer ! small -uantity of water is also added before boiling the mi$ture
to facilitate pulping Re-uisite amount of pectin is added at this stage /he product
together with an almost -uantity of citric acid to a temperature of ''(
(
. to '''
(
.
determined by a preservers thermometer /he product is cooled before packing
*ellies an" S(uashes : /he washed and peeled traits are fed into hopper of a juice
e$tractor and the juice is filtered /he juice containing sufficient pectin and the dry sugar
are boiled in the stream- jacketed kettle until a satisfactory =elly is obtained 8ecessary
preservative are added towards the end of boiling process /he e$tracted and clean juice
are sent into a stainless steel blending tank, where juice is mi$ed with sugar syrup and
other ingredients like citric acid, essence of orangeS LemonS pineapple, water preservative
etc
0ic#les : /he washed, peeled and sliced fruit are kept in ' percent common slat solution
for '7 hours /hen the fruits are kept in a 7 percent common slate solution for '7 hours
/he process is repeated for another two days On the fifth days the fruit are shows that the
fruits are cured than they are washed thoroughly in clean hot water /he products kept in
vinegar of 62 acetic acid solution and spice is added to it !part from this procedure a
number of local producers are also available which may also be followed
+EASI-LE L!,ATI!N :%
/he site should be surrounded by available raw materials as well as skilled manpower
SKILL RE<UIRE) : %
!t least to ' weeks training is re-uired for necessary skill /his skill can be ac-uired
through locally available institute or from Aovt !gricultural +evelopment offices /he
-uality maintenance is very important and it should be according to 9"O norms of 9ood
products ,eter act
<UALITY ,!NTR!L ; STAN)AR)S : /he *%) specification is
%) : 7BDE N &BE3 : 9ruits s-uash
%) : D33& N &BEE : /omato juice
0LANT AN) MA,=INERIES :
"lant *uilding: D(( )- 9eet : !s per 9"O norms prescribe ministry of food processing:-
OiP *aby boiler &
OiiP )crew type juice e$tractor &
OiiiP =acketed Hettle of 6( liter capacity '
OivP /omato baby pulpier &
OvP .ooling tank '
OviP =uice stores tank '
OviiP=uice store tank &
OviiiP )tainless steel knives '( "cs
Oi$P "ilfer proof cup sealing machine &
O$P "latform weighting scale &
O$iP 5ater arrangement with filtration and filtrate O&((( capacity tankP &
O$iiP )tainless steel posts 6
O$iiiP )yrup ,udding tank &
O$ivP Aas *urner O.ommercialP '
Ractracto meter (6(2 &
7(2 - 362 &
Utilities :%
"ower : 'D6 Hw
5ater : '((( Hiloliter
)team : 7( /ones
.oal or Aas : 3 tones O&'( cylinder per annumP
,apital ,ost :%
Land +evelopment : D(,(((((
)hed of D(( s-9tTD((S- s-ft : B(,(((((
"reliminary C per operative : D(,(((((
%nstallation : &(,(((((
"lant office 9urniture : &6,(((((
"lant C ,achinery : &,1(,(((((
Total : >?@A?:::$::
3a4 ,onsu'ption of Raw Materials :
Sl$ No$ Ite's <ty$ Rate Total ,ost
& 9ruit C Fegetables D&6 ton '(S- per Hg E,D(,(((((
' )ugar 7E ton '(S- per kg B',(((((
D .itric !cid ((&' ton ''(S- per kg ',E7(((
7 )alt ((6 ton 6S- per kg '6(((
6 "ectin &((D ton 6((S- per kg &,6((((
E .olours 1' liters 6((S- per lt &3,(((((
1 @dible oil (DE ton D6S- per lt &',E((((
3 )odium *en#oate ((1' ton '6(S- per lt &3,(((((
B H,) ((DE '6(S- per lt B,(((((
&( @ssence (&( ton 6((S- per lt 6(,(((((
&& 9uel cost OAasP 3,(&(((
&' "acking materials '(,((( pkt Of 6(( grams T 7S- per pkt 3(,((((((
T!TAL 9?@:?:::$::
3b4 Manpower :
0articulars Nos$ Rate30BM4 A'ount 30BM4
iP ,anager .um )upervisor & 6,(((S- E(,(((((
iiP )kill 5orker 6 D,6((S- ',&(,(((((
iiiP )emi )kill 5orker ' ',6((S- E(,(((((
ivP Gelper ' ',(((S- 73,(((((
vP )alesman .ommission 3,(((((
Total >?CD?:::$::
3c4 Utilities :
iP L"A Aas .ylinder 1 '6(S- ',6',(((((
3"4 !/erhea" :
iP "rinting C )tationary &,(((((
iiP !dvertisement O*anner C LeafletP ',7((((
iiiP %nternal travels E,(((((
ivP "ower E,(((((
vP %nsurance ',7((((
Total 8E?C::$::
6!RKIN ,A0ITAL RE<UIREMENT :%
OiP Raw materials C packing materials ' months Rs&,6E,(((((
OiiP 9inished good ' weeks Rs EE,(((((
OiiiP 5orking @$penses & week Rs DD,(((((
OivP Receivables ' weeks Rs 1(,(((((
Total Rs >?FA?:::$::
T!TAL IN.ESTMENT
OiP 9i$ed capital : Rs D,76,(((((
OiiP 5orking .apital re-uirement : Rs D,'6,(((((
Total Rs$ D?E:?:::$::
&6 8et profit : Rs D&6 lakh pa
&E *reakeven : E&12
A-STRA,T !+ UI)ELINES +!R RANTIN LI,NE,E UN)ER T=E E$0$!$
3899A4
!bstract of guidelines regarding grant of fruit products order licence for the manufacture
of products %t is informed that there are five categories of licence under fruit products
order-&B66, depending upon the annual production in metric tones /he details of the
different categories are given below :-
)l .ategories ,inimum
manufac
turing
area
Ocarpet
areaP in
s-
,eter
Oflyproo
fP
,inimum
stora
ge
area
Ocar
pet
area
P in
s-
,et
er
Optimu
m
int
er
na
l
he
ig
ht
of
th
e
m
an
uf
act
uri
ng
ar
ea
!nnual
produ
ction
in
metric
tones
not to
e$cee
d
!nnual
licenc
e fees
in
Orupee
sP
& Large scale D(( )-,t D(( )-,t &7 9t 8o limit &6((
' )mall scale O!P &6( s-mt 6( s-mt &7 ft '6( ,t E((
D )mall scale O*P &(( s-mt &(( s-mt &7 ft &(( ,t 7((
7 .ottage scale E( s-mt E( s-mt &( ft 6( ,t '6(
6 Gome scale O*P '6 s-mt '6 s-mt &( ft &( ,t &((
+epending upon the anticipated annual production entrepreneur may select a building
that satisfies the area and height re-uirements for the relevant category of the licence
ensuring that building is :
Of permanent structure with R.., /%8 )G@@/) OR !)*@)/O) ROO9%8A
5ell lighted and ventilated
%ndependent with independent approach from the main road %t shall have no direct
communication with residential portion
Located in a clean and hygienic place with surroundings clean and open free from open
drains, garbage, cattle sheds etc
,anufacturing premises shall be made fly proof by providing fine mesh on windows,
e$ternal door, ventilators and openings 5all shall be plastered and white washed 5alls
inner surface shall be made impervious and moisture poof upto &6 meter height by tiles,
cement plastered or enamel paint 9loors shall be cemented "roper drainage facilities
shall be provided @$it doors O9ly proof frameP shall be provided with auto closing device
and the door shall open outwards
/he entrepreneur is also re-uired to make provision for free flowing tap water in the
manufacturing area 5ater shall be got analysed chemically and bacteriologically for its
for its profitability by a recogni#ed laboratory, it should be ensured that the water sample
for analysis is drawn by a representative of the laboratory or local health inspector and
mention to this affect is made in water analysis report
,achinery and e-uipment re-uired for manufacture of fruit products intended to be
licensed shall also be arranged
!fter arranging a suitable building, the entrepreneur may send a sketch of the building
showing the dimensions vi# length, breadth, and height of all the rooms in meters
furnishing the following information
/he different types of fruit products proposed to manufacture with their anticipated
annual production level in metric tones
/he type of construction of the building and nature of surroundings
/he source of water proposed to be used in the manufacture of fruit products with water
reports
List of 'achineries an" e(uip'ents :
9urther action in the matter will be initiated after the receipt of above information
Licence shall not be granted unless the premises is ready in all respects, inspected and
approved
MULTI +RUIT *UI,E 0R!)U,T
In"ian Scenario :
)ince withdrawal of e$cise duty on fruit and vegetable products there has been significant
rise in the growth rate of the industry /he sector has registered a production growth of
&D2 overall, e$ports have been increasing continuously and pur at 0)U '6(6million
/he total investment approved so far e$ceeds Rs 7D(B crores O0)U &&B billionP, out of
which foreign investment is Rs 133 crores O0) U '&33 millionP
In/est'ent 0otential in +ruit 0rocessin& :
/he countrys share in the world trade of processed fruits is still less than one percent !s
such, abundant investment opportunities are there in the e$panding domestic market and
e$port arena !n increasing acceptance of new products with market development efforts
is seen
.hanges in e$port-import policies and e$change rate adjustments have helped improving
the e$port potential
/here is a good international demand for certain fresh fruits as well as processed fruits
products 9resh fruits identified as having good e$port potential are : ,ango, *anana,
Lichee and e$otics like "assion fruit, grown in this area
0olicies an" Re&ulations :
/hough no industrial license is re-uired for setting up 9 C F" industries, setting-up
&((2 @O0s re-uires specific Aovt approvals
/his sector is regulated by the 9ruit "roducts Order, &B66 O9"OP, issued under the
@ssential .ommodities !ct /he ,inistry of 9ood "rocessing %ndustries administers this
order /he order lays down product specifications and -uality control re-uirements on
production-hygiene, relabeling and marketing of processed fruit product
!ll processing units are re-uired to obtain a license under this order "eriodic inspection
of units is also carried out %n addition, consignments of fruit products intended for e$port
are subject to pre-shipment inspection under the 9"O ,any 9CF" industries are eligible
for automatic approval of foreign technology agreement and up to 6&2 foreign e-uity
participation /hese include : tomatoes, mushrooms, fruit, fruit-peel, fruit jellies,
marmalades, fruit juices, etc
Mar#et
/he present industry is fragmented by different operation si#es as follows :
Gome )cale 772
.ottage )cale &12
)mall )cale &E2
Relabeller &72
Large )cale B2
%t is very difficult to estimate the actual and potential market si#e of this product category
Gowever, there is a latent demand of around &( crores litters of natural fruit juice which
is much more than current consumptionS supply level of around D crores litters, both
organi#ed and unorgani#ed sectors taken together
9urther, the per capital consumption in %ndia is estimated to around '6 ml against 76
litters in Aermany, 7'6 litters in )wit#erland and DB litters in 0)! ,arket analysts
e$pect a growth rate of '(2 per annum and hence the industry offers a significant
opportunity
9resh and processed fruits have been identified as a thrust area for e$port too %n view of
the above, it appears that there is a good scope for the proposed fruit processing industry
in ,anipur
,ate&ory of fruit 1uice
9ruit juice can be categori#ed as :
/ropical
.itrus
9reshS .ellular
/emperate
Re-constituted
/ropical fruit juice
"ineapple
"assion fruit
,ango
Auava
"apaya
/omato
/he -uality and flavour of the e$tracted juices depend on ripeness, processing and storage
conditions /hey are susceptible to degradation during thermal processing and re-uire
capture and recovery of volatiles during the evaporation stage, in order to maintain high
-uality
,itrus fruit 1uice
Orange
Lime
Lemon
Arapefruit
/he -uality and flavour of the e$tracted juices depend on ripeness, processing and storage
conditions @ssential oil content of citrus fruit is important in maintaining the typical
flavour profile of the juice Gowever, e$cessive oil content can give objectionable off-
flavours /he behaviour of each juice component must therefore be considered in
developing the correct process parameters for a high -uality product
+resh an" ,ellular +ruit *uice
/he world fruit juice market has become much more competitive in recent years and in
most developed countries, there is a plentiful supply of fruit juice concentrate /he
market for reconstituted orange, apple and pineapple juice in particular has become very
competitive
,ajor fruit processors therefore with to produce fruit juices, which are of such a high
-uality that the product can be readily differentiated from cheaper counterparts /o meet
this demand, there is a growing trend toward the production of Vnot-from-concentrateW
O89.P juices since these are perceived to be of better -uality than reconstituted juices
%n the 0), production of 89. orange juice has grown to D(2 of the total production
within five years and, despite the high cost of transportation, this trend is being repeated
in @urope )imilarly new opportunities are arising for 89. juice containing cells and
fibre processed from wide range of freshly s-uee#ed and cellular fruit juices
Te'perate fruit 1uice
Te'perate fruit 1uices inclu"e:
!pples
"ears
Arapes
*erries
"eaches
"lums
!pricots
/hese temperate area fruit are processed using similar process e-uipment, but each has
particular characteristics, which affect the e$act method of e$traction and thermal
treatment ,ost of these fruits contain pectin, which needs to be removed in order to
produce a clear and product
Re%constitute" *uices an" Nectars
,ost fruit juice has traditionally been distributed from the growing region as a
concentrate to save on transportation costs /he concentrate is then diluted with water
close to the point of sale, pasteuri#ed, and re-packaged
8ectars are obtained by the addition of water and sugar to fruit juice, fruit juice
concentrate, fruit puree or a mi$ture of these 9ruits suitable for nectar production
includes:
!pricot
"each
"ear
,ango
Auava
!pple
.itrus juices
0rocess
/he farm arrived fruit are first washed than sorted for inspection 9rom inspection
conveyor the fruit is passed on to fruit mill for crushing and than to
hydraulic press for juice e$traction
@$tracted juice is than filtered through press filter and again sent to centrifuge for
clarification
/he clarified fruit juice is concentrated in evaporation plant
/he concentrated juice is sterili#ed in plate heat e$changer by heating
/he sterili#ed juice in the hot condition is aseptically packed in aseptic bags by
aseptic filling packing machine
0ropose" capacity
/he proposed multi fruit juicing unit will have a finished production capacity of about
&,6(( ,/ juice per annum as follows :
0ro"uct Installe"
,apacity
3MT4
8
st
; F
n"
year
0ro"uction
G E:H
>
r"
year onwar"
0ro"uction
G C:H
"ineapple concentrate 6'6 DE1 7'(
Orange =uice '76 &1' &BE
"ineapple =uice DB( '1D D&'
)liced "ineapple &'( 37 BE
"assion fruit ''( &67 &1E
Total 8A:: 8:A: 8F::
Raw Material
/he raw material and other material re-uirement for manufacturing pineapple, orange and
passion fruit juice for the projected production mi$ and -uantity will be as follows :
Ite' RM
<uan
tity G
E:H
38:A:
MT4
Annual
/alue
of RM
3Rs$ In
La#hs
4
<uantity
3MT4
F
n"
year
onwa
r"s
G
C:H
38F::
MT4
Annual
/alue
of
RM
3Rs$
In
La#h
s4
"ineapple D&DB6( 6633 D633(( ED3E
Orange 61&E1 '363 E6DDD D'E1
"assion fruit 6&DDD 'D&( 63EE1 'E7(
/otal Luantity
)ugar re-uired per ,/
finished product
&616( '77& &3((( '1B(
"reservatives C !dditives T
Rs '6(S,/ finished
product
- 'ED - D((
"acking materials T Rs
6(((S-
- 6'6( - E(((
9uel for generating steam as
well as for +A set
73D( BEE 6&37 &(D1
Total @@>:$>: 89D$ED A:A9$C@ FF@$F:
Lan" re(uire'ent : 7 acres of land
0lant an" E(uip'ent
/he main plant and e-uipment will be for following activities :
9ruit handling C Reception %nspectionS washing =uice e$traction
=uice processing =uice finishing .entrifugation
Gomogeni#ation ,embrane filtration "asteuri#ation
+e-aeration .oncentration @ssence recovery
.oncentrate post-treatment !septic or non-aseptic packaging
In the oran&e line followin& a""itional syste's will be installe"
Oil removal system after =uice @$traction )ection and Oil recovery as well as )pecial
/reatment of OrangeS Lime =uice facility after the Gomogeni#ation section
-uil"in& an" ci/il wor#
!bout D((( s- m industrial and other shedSbuilding including aseptic rooms and raw
material refrigerated room
0ower re(uire'ent
/otal connected load of about '6( H5 will be re-uired +ue to present short supply of
power a +A set back up of &6( HF! is also envisaged
6ater re(uire'ent
!bout 16 HL of water will be re-uired every working day
E'ploy'ent
BD persons of different category as per following table
Sl$
N
o
$
Type !n roll SalaryB
wa&es
per
'onth
Total
rupees
per
'onth
Annual cost
Rs$ In
La#hs
& ,anagerial O)eniorP ' &3,((((( DE,((((( 7D'
' )r @ngineer D &',((((( DE,((((( 7D'
D @ngineers D &(,((((( D(,((((( DE
7 /echnical supervisor 7 E,((((( '7,((((( '33
6 8on-/echnical
supervisor
B 7,((((( DE,(((((
E .lerical staff ' D,6(((( 1,((((( (37
1 )killed worker &( D,6(((( D6,((((( 7'
3 )emiskilled worker D( D,((((( B(,((((( &(3
B 0nskilled worker D( ',((((( E(,((((( 1'
Total >@A?:::$:: @F$@C
Esti'ate" 0ro1ect ,ost ORs %n LakhsP
)escription of In/est'ent Total ,ost
"reliminary e$penses 'E(
Land and Land +evelopment 7B(
+rains, Roads C 5alls &BE(
.ivil )tructural 7BD(
,ain processing plant and e-uipment EB1E(
!u$iliaries ''((
0tilities 11&(
"ollution control e-uipment 'ED(
Other assets 3'(
@lectrical 'B&(
@ng C pre operative e$penses &D67(
,argin for working capital D'B(
Total ,apital cost 88:A$::
-rea#%e/en 0oint
*reak-even point of the project is determined in the '
nd
year at 3(2 of installed capacity
/he break-even point of the projection is at D62 of installed capacity in the '
nd
year of
operation when plant optimi#es its production at &'(( /"M
0ay -ac# 0erio"
/he entire capital investment e$cluding margin for working capital will be paid back
within 6 years and & months of operation
Internal Rate of Return
%RR is calculated by Mield ,ethod and works out to be '73(2 On an average '73(2
net of ta$ will be earned on the invested amount Oless of margin for working capitalP in
each year for &( years, after allowing for the repayment of the sum originally invested
0ro1ecte" 0rofitability State'ent
Sl$
No$
)escription 8
st

year
F
n"
year >
r"

year
@
th
year A
th

year
D
th
year
%nstalled capacity in
,/
&6(( &6(( &6(( &6(( &6(( &6((
A$ 0ro"uction
& 0tili#ation 2 1( 3( 3( 3( 3( 3(
' "roduction &(6( &'(( &'(( &'(( &'(( &'((
-$ Inco'e fro'
& )ales of finished
product
6767& E'DD' E'DD' E'DD' E'DD' E'DD'
' /ransport subsidy on
finished product T
B(2
7B& 6E' 6E' 6E' 6E' 6E'
D /ransport subsidy on
finished goods T
6(2
(D' (DE (DE (DE (DE (DE
,$ Manufacturin& E7penses
& Raw materials &D&B3 &6(3D &6(3D &6(3D &6(3D &6(3D
' .onsumables 66&D ED(( ED(( ED(( ED(( ED((
D 9uel BEE &(D1 &(D1 &(D1 &(D1 &(D1
7 )tores C spares 6E& E7& E7& E7& E7& E7&
6 "ower energy charges &7(D &66B &66B &66B &66B &66B
E "ower demand
charge
'1( D(( D(( D(( D(( D((
1 Labour C )upervisor D&(' D7&' D7&' D7&' D7&' D7&'
3 ,iscellaneous 76( E(( E(( E(( E(( E((
/otal . '67ED '3BDD '3BDD '3BDD '3BDD '3BDD
)$ A"'$ ; Sales E7penses
& !dm )alaries '3' D&( D&( D&( D&( D&(
' )ales !dm .ost E73 1&D 1&D 1&D 1&D 1&D
D ,iscellaneous
e$penses incl "hone,
printing stationary,
traveling
E(( 3(( &((( &'(( &'(( &'((
7 )ales e$penses T of
Rs &(((S- per ,/
&(6( &'(( &'(( &'(( &'(( &'((
/otal + '63( D('D D''D D7'D D7'D D7'D
E$ !peratin& 0rofit
-%3,I)4 FE:$F: >:9$E@ >:E$E@ >:A$E@ >:A$E@ >:A$E@
+$ )epreciation
*y )L ,ethod E63& E63& E63& E63& E63& E63&
A "rofit after
depreciation O@-9P
'(7DB '7DBD '7&BD 'DBBD 'DBBD 'DBBD
G %nterest .harges
& On term loan BB76 31(' 176B E'&E 7B1D D1'B
' On bank borrowing &7B' &7B' &D(E &&&B BDD 17E
/otal G &&7D1 &(&B7 31E7 1DD6 6B(6 7716
% "rofit before ta$es
O"*/P OA-GP
B((' &7&B3 &67'3 &EE63 &3(31 &B6&1
= "rovision for ta$es
nil as per 8@%"
H "rofit after ta$es
O"!/P O%-=P
B((' &7&B3 &67'3 &EE63 &3(31 &B6&1
SU00LIER !+ E<UI0MENT
))" Limited
.ontact "erson : ,r /apas .hatarjee
!ddress : &B +L9 %ndustrial !rea, "hase-%%, &DS7, ,athura Road,
9aridabad, Garyana-&'&((D O%8+%!P
"hone : XOB&PO&'BP ''1677&S ''111D(
9a$ : XOB&P O&'BP '6'1177&
@-mail : infoTsspindiacom
,Ss !lbertson %nternational, 0)!
,Ss *ardo .itrus "roducts, 0)!
,Ss %n %ndustries !limenticias, *ra#il
,Ss .itrosuco "aulista, *ra#il
,Ss !lfa Leval, )wedenS %ndia
!RANE S<UAS=? MI2E) +RUIT *AMB *ELLY AN)
T!MAT! SAUSE 0R!*E,T
INTR!)U,TI!N
/he consumption of the products like mi$ed fruits jam and orange jamS marmalade is
gaining popularity day by day owing to the growing change in the food habits and
increased consumption of bread and other convenient snack foods
!s regards fruit s-uash, it finds wide consumption as fruit drink %ndia is, by and large, a
tropical country where the habit of taking soft drinks is pretty high
!mong the established brands in the jamS marmaladeS s-uash segment, +ruk, Hissan,
+ipys, /ims C )il are the prominent names *esides, there are number of units in the
small-scale sector scattered across the country producing the said products
/he proposed products to be manufactured by the proposed unit have a steady demand
spread all over %ndia /he estimated present demand for =amS)-uashS)yrup and
)auceS"ureeSHetchup in @astern and 8@ %ndia are 67(( ,/ and 11B3 ,/ respectively
*esides, there is demand from other regions also /hus, as such, there will be no problem
for the proposed unit to market its products
In/est'ent scenario
)ince withdrawal of e$cise duty on fruit and vegetable products there has been significant
rise in the growth of the industry /he sector has registered a production growth of &D2
overall, e$ports have been increasing continuously and are put at 0)U '6(6 million
/he total investment approved so far e$ceeds Rs 7D(B crores O0) U &&B billionP, out of
which foreign investment is Rs 133 crores O0) U '&33 millionP
In/est'ent 0otential in +ruit 0rocessin& :
/he countrys share in the world trade of processed fruits is still less than one percent !s
such, abundant investment opportunities are there in the e$panding domestic market and
e$port arena !n increasing acceptance of new products with market development efforts
is seen
.hanges in e$port-import policies and e$change rate adjustments have helped improving
the e$port potential /here is a good international demand for certain fresh fruits as well
as processed fruits products
0olicies an" Re&ulations :
/hough no industrial licence is re-uired for setting up 9ruit C Fegetable "rocessing O9C
F"P industries, setting-up &(2 @O0s re-uires specific Aovt approvals
/his sector is regulated by the 9ruit "roducts Order, &B66 O9"OP, issued under the
@ssential .ommodities !ct /he ,inistry of 9ood "rocessing %ndustries administers this
order /he order lays down product specifications and -uality control re-uirements on
production-hygiene, a labeling and marketing of processed fruit product
!ll processing units are re-uired to obtain a licence under this order "eriodic inspections
of units are also carried out %n addition, consignments of fruit products intended for
e$port are subject to pre-shipment inspection under the 9"O ,any 9CF" industries are
eligible for automatic approval of foreign technology agreement and up to 6&2 foreign
e-uity participation /hese include4 tomatoes, mushrooms, fruit, nuts, fruit-peel, fruit
jellies, marmalades, fruit juices, etc
0ro'otional A&encies an" Assistance :
/he ,inistry of 9ood "rocessing %ndustries provides, assistance to the sector through
several plan-schemes, vi# : schemes for creating infrastructure, development of backward
linkages, RC+ and training etc /here are some other organi#ations like !"@+!, )9!.
and 8G*, which help in arranging inputs, marketing, e$port etc
/echnology- /he proposed manufacturing activity does not call for import of technology
Gowever, .9/R%, ,ysore may be contacted for technical know-how
0R!,ESS
S(uash
/he fruits Oorange C others like passionS peachS berryP are carefully sortedS selected
according to -uality /he fruits are then washed with sprayed water to remove unwanted
elements !fter washing, the fruits are again inspected /he oranges are peeled /he
peeled oranges are put to juice e$tractor for e$traction of juice =uice is collected in
stainless steel tanks and fed into strainer where suspended coarse materials are removed
/he juice is then centrifuged in stainless steel centrifuge /he juice is diluted to re-uired
concentration to which sugar and citric acid are added 8ecessary flavours, permitted
colour and preservative are also added to it to form s-uash which is subse-uently filled in
glass bottles, sealed, labeled and packed in cartons for dispatch
*a'B Mar'ala"e
/he pulp produced after e$traction of juice is boiled along with sugar and citric acid at a
controlled temperature 0pon boiling re-uired permitted colours, flavours and
preservatives are added %t is then cooled to re-uired temperature and forms a jelly like
consistency /he jam thus obtained is filled in bottles, sealed, labeled and packed in
cartons for dispatch
To'ato Sauce
9ully ripe selected tomatoes are washed at first and then sliced %t is heated and passed
through pulper to produce pulp followed by sieving /he li-uid pulp is boiledS cooked
with various ingredients Oground spice, garlic, onion etc as per formulationP followed by
addition of sugar, salt, acetic acidS vinegar, chemicals etc )odium *en#oate is generally
added before the product is filled into washed bottles, sealed, labeled and packed in
cartons for dispatch
0ropose" capacity
/he unit will operate on two-shift basis per day for '6( days per annum /he unit will
have the fle$ibility to process nearly 6(( Hgs each of Orange and mi$ fruit per shift,
depending on the availability /he profile is based on processing of orange for (( days,
mi$ed fruits for '6 days and /omato for E( days
/he production and product-mi$ at different capacity utili#ation per annum will be as
follows:
Ite' Installe"
,apacity
3T0A4
8
st
year
0ro"uct
ion G
E:H
F
n"
year onwar"
0ro"uction G
C:H
,i$ fruit =am 1( 7B 6E
Orange )-uash 6( D6 7(
Orange ,armalade 6( D6 7(
/omato )auce &( 1 3
Total 8C: 8FD 8@@

Raw 'aterial
/he major raw materials and consumables re-uired for production of orange s-uash,
marmalade, mi$ed fruits s-uashS jam and tomato sauce are maturedS ripe orange
)ugar citric acid, preservatives, colours, chemicals, salts, spices etc are also re-uired for
production of the said items /he products will be packed in glass bottlesSjars and finally
in cartons !ll these fruits are available within the )tate, 8@R and other parts of the
country and may be procured from different producing centers in different seasons /he
average cost of fruits has been taken considering the seasonal fluctuation in price !ll
other consumable items can easily be procured from the local dealersS open market
The details of raw material requirement is given below :
Ite' RM <uantity
8
st
year G
E:H
Annual
.alue of
RM 3Rs$
In La#hs4
<uantity
3MT4 F
n"
year
onwar"s G
C:H
Annual /alue
of RM 3Rs$ In
La#hs4
& ,i$ed 9ruit &BE(( D6D ''7(( 7(D
' Orange '&EE1 &(3D '71E' &'D3
D /omato &16( (D' '((( (DE
7 )ugar per ,/ D13( 63E 7D'( E1(
finished product
6 .itric acid, colours,
preservatives, slat,
chemicals, spices etc
T Rs 6(S,/
(&B (''
E )-uash bottle O1((
mlP
6'6(( "cs '3B E(((( "cs DD(
1 =am jars O6(( gmP &7((( "cs ED( &E((( "cs 1'(
3 )auce bottle O&((
gmP
1((( "cs (7' 3((( "cs (73
B LabelS.apSLid etc - (&3 - ('(
&( .artons with printing - ('3 - (D'
&& 9uel for generating
steam as well as for
+A set
63( HL &&E E''HL &'7
Total 89999E>$ED >8$9A FFCA@8$:@ >D$@>
Lan" re(uire'ent : 7(( s-m
0lant an" E(uip'ent: /he main plant e-uipment will be : "ulper, fruit cutting knives,
juicing machine, rosing machine, stainless steel storage tank, blending tank, steam
jacketed stainless steel vessel, strainer, pasteuri#er-cum cooler, bottle washer, cap sealing
machine, bottle filling machine, label gumming machine etc
!ther support facilities re(uire are: 5ater purifier, ,ini boiler, laboratoryS testing
e-uipment, weighing scale, electrical installation, small fuel oil storage system, etc
-uil"in& an" ci/il wor#: !bout '(( s- m industrial and other shedS building including
aseptic rooms and raw material refrigerated room
0ower re(uire'ent: /otal connected load of about D( H5 will be re-uired +ue to
present short supply of power of +A set back up to D( HF! is also envisaged
6ater re(uire'ent: !bout ( HL of water will be re-uired every working day
E'ploy'ent: '( persons of different category as per following table
Sl$
No
Type !n roll SalaryB
wa&es
p$'$
Total
rupees p$'$
Annual /alue
Rs$ In La#has
& ,anagerial O)eniorP ' E,((((( &',((((( &77
' /echnical supervisor ' 6,((((( &(,((((( &'
D 8on technical supv ' D,((((( E,((((( (1'
7 .lerical staff D D,((((( B,((((( &(3
6 )killed worker D D,6(((( &(,6(((( &'E
E )emiskilled worker 7 D,((((( &',((((( &77
1 0nskilled worker 7 ',((((( 3,((((( (BE
Total F: DE?A::$:: C$8
Esti'ate" 0ro1ect ,ost 3with out cost of procurin& lan"4 ORs %n LakhsP
)escription of In/est'ent Total ,ost
"reliminary e$penses (E'
Land and Land +evelopment (1(
.ivil )tructural 16(
,ain "rocessing "lant @-uipment 16(
!u$iliaries (E3
0tilities 6D(
"ollution control (6(
Others &D'
@lectrical &E6
@ng C pre operative e$penses E((
,argin for working capital 7'D
Total ,apital ,ost >D$::
-rea# 5e/en 0oint: *reak-even "oint of the project is determined in the '
nd
year at 3(2
of installed capacity /he break-even point of the projection is at 7D2 of installed
capacity in the '
nd
year of operation when plant optimi#es its production at &77 /"M
0ay -ac# 0erio": /he entire capital investment e$cluding margin for working capital
will be paid back within ' years and && months of operation /he pay back amount is
computed from the adjusted cash flow
Internal Rate of Return: On an average 7DD(2 net of ta$ will be earned on the
invested amount Oless of margin for working capitalP in each year for ( years, after
allowing for the repayment of the sum originally invested
0ro1ecte" 0rofitability State'ent 3Rupees in La#hs4
Sl$
No$
)escription 8
st

year
F
n"
year >
r"

year
@
th
year A
th

year
D
th
year
%nstalled capacity in
,/
&3( &3( &3( &3( &3( &3(
A$ 0ro"uction
& 0tili#ation 2 1( 3( 3( 3( 3( 3(
' "roduction &'E &77 &77 &77 &77 &77
-$ Inco'e fro'
& )ales of finished
product
E&B6 1(3( 1(3( 1(3( 1(3( 1(3(
' /ransport subsidy on
finished product T
B(2
(6B (E1 (E1 (E1 (E1 (E1
D /ransport subsidy on
finished goods T
6(2
((7 ((7 ((7 ((7 ((7 ((7
,$ Manufacturin& E7penses
& Raw materials '(67 'D71 'D71 'D71 'D71 'D71
' .onsumables &('6 &&1' &&1' &&1' &&1' &&1'
D 9uel &&E &'7 &'7 &'7 &'7 &'7
7 )tores C spares (7E (6D (6D (6D (6D (6D
6 "ower energy charges &73 &E7 &E7 &E7 &E7 &E7
E "ower demand
charge
(D7 (D3 (D3 (D3 (D3 (D3
1 Labour C )upervisor 7E' 6(3 6(3 6(3 6(3 6(3
3 ,iscellaneous 76( E(( E(( E(( E(( E((
/otal . 7DD6 6((E 6((E 6((E 6((E 6((E
)$ A"'$ ; Sales E7penses
& !dm )alaries (1' (1B (1B (1B (1B (1B
' )ales !dm .ost '(7 ''7 ''7 ''7 ''7 ''7
D ,iscellaneous
e$penses incl "hone,
printing stationary,
traveling
&6( &16 &16 &16 &16 &16
7 )ales e$penses T of
Rs &(((S- per ,/
(ED (1' (1' (1' (1' (1'
/otal + 73B 66& 66& 66& 66& 66&
E$ !peratin& 0rofit
-%3,I)4 8@$>@ 8A$9A 8A$9A 8A$9A 8A$9A 8A$9A
+$ )epreciation
*y )L ,ethod &'B &'B &'B &'B &'B &'B
$ 0rofit after
"epreciation 3E%+4
8>$:A 8@$DD 8@$DD 8@$DD 8@$DD 8@$DD
=$ Interest ,har&es
& On term loan D'7 '37 '7D '(D &E' &''
' On bank borrowing &1B &1B &61 &D7 &&' (B(
Total = A$:> @$D> @$:: >$>E F$E@ F$88
% "rofit before ta$es
O"*/P OA-GP
B((' &7&B3 &67'3 &EE63 &3(31 &B6&1
= "rovision for ta$es
nil as per 8@%"
H "rofit after ta$es
O"!/P O%-=P
3(' &((D &(EE &&'B &&B' &'66
Supplier of e(uip'ent
))" Limited
,ather C "latt O%ndiaP Ltd, ,umbai
"asteur @ngineering .o Ltd, Holkatta
"rocess ,achinery and @-uipment "vt Ltd, Holkatta
*atliboi C .o Ltd, Holkatta
"@. *oilers O"P Ltd, Holkatta