Professional Documents
Culture Documents
Project Description
The project proposal is for setting up of vegetable pack house, at important crop pockets in order to
provide basic Agri infrastructure facilities for maintaining consistent quality of fresh vegetables to be
supplied for export, while also providing technical support facilities for pre and post harvest
procedures at one point to the vegetable growers.
The project envisages vegetable procurement directly from the farmers, while facilitating vegetable
sorting, grading, cleaning, pre-cooling, cold storage (controlled atmosphere) and transportation
system to reach out to the domestic and export market.
Project Concept
The proposed Vegetable Pack house project is an important link in the complete supply chain
management for fresh horticulture produce and provides necessary support for the development of
vegetable market for domestic and global demand. The project will provide required impetus in the
form of physical infrastructure and technological inputs, to the Vegetable growers and exporters,
which in turn will develop vegetable exports from the region.
India’s horticulture production in the Top 20 vegetable producer in the w orld - 2005
China
year 2004-2005 was around 164 million 63%
tons with 17.8 million hectares of area
under cultivation. It is estimated that
Others
horticulture production was set to 14%
increase to 178.1 million tons in 2005- Japan India
2006 with acreage of 18.6 million 1% 16%
Russian
Viet Nam
hectares under cultivation. Federation
Philippines 3%
1%
The technological changes in the post Source: FAO Statistics
2%
harvest storage and transportation facilities particularly with the availability of cool chain
domestically and globally in the developed countries, boosted growth in the global vegetable trade
AF-30 1
Project Profile on Mott MacDonald
Vegetable Pack house iNDEXTb
in the last few years. The global vegetable trade which was estimated at US $ 36 billion is
expected to grow to US $ 50 billion by the year 2010.
Growth Drivers
India exports a mere percentile of the total fresh vegetable production and thus, there is a
vast potential for increasing this quantity, provided a Vegetable pack house system comes up.
Indian Vegetable production has increased substantially in last few years, due to increased
adoption of tissue culture plants which give higher yield, consistent quality and production for
longer part of the year.
There is a huge potential for export to EU countries, CIS countries. India already exports
Vegetables to Germany, France, U.K., but still needs to go a long way to meet strict quality
standards.
Why Gujarat?
The average horticulture production in the state was around 63.08 Lac MT, cultivated under
380184 Hectares of area.
Gujarat has availability of technically trained man power for pack house operation at
economical cost.
Gujarat has well developed transport infrastructure facilities like rail & road network and
availability of world class ports like Kandla, Mundra and Pipavav having required container
cargo handling facilities.
Raw Material
Vegetables are the basic raw material for a pack house to function. The following table summarizes
vegetable production in the suggested locations of Gujarat.
AF-30 2
Project Profile on Mott MacDonald
Vegetable Pack house iNDEXTb
Year
Sr.
Location
No
2001-02 2002-03 2003-04 2004-05 2005-06
Source: Directorate of Agriculture, Gujarat. (A) stands for Area in Hectares, (P) stands for Production in MT. Letters in bold are
the suggested hub for Pack house.
Technology / Process
As core infrastructure, the project will require Vegetable procurement system from farms, Vegetable
cleaning, sorting, grading and packing line, Vegetable pre-cooling, Controlled atmosphere cold
storage and Logistic system to carry Vegetables to ports.
In case the operational area of the proposed pack house is having more than 40 km periphery, then it
is suggested to have mobile pre-coolers to get pre-cooled Green Vegetables, to eliminate any
damage to this sensitive crop from farm heat, before it is brought to pack house, particularly in
adverse climatic conditions.
In Gujarat, horticulture department as well as the state agriculture universities would provide
necessary extension services and technological inputs to the farmers or their growers’ co-operatives,
for getting quality Vegetable crop from the region.
AF-30 3
Project Profile on Mott MacDonald
Vegetable Pack house iNDEXTb
Harvesting
Grading /Sorting
Washing
Pre-cooling
Cold Storage
Cool Transporting
As indicated above, the proposed project will require an approx 6000 sq. mt of land with a proposed
built up area of 1500 sq. mt. The unit is proposed to have an installed capacity of 500 MTPA. The total
fixed cost of the project is estimated at INR 36.56 million and INR 13.44 million is the working capital
margin which adds upto total capital cost of INR 50 million. The unit being proposed to cater to
domestic as well as to International demand and hence it is suggested to have a Debt equity ratio of
2:1. Thus, the estimated term loan amounts to INR 33.30 million and Equity at INR 16.70 million.
AF-30 4
Project Profile on Mott MacDonald
Vegetable Pack house iNDEXTb
Suggested Location
Vegetable pack-house could be set up at various places in North, Central and South Gujarat Regions
in the districts of Sabarkantha, Mehsana, Banaskantha and part of Ahmedabad, Kheda, Anand,
Surat, Navsari and Valsad.
Financial Indicators
Based on the profitability projections worked out for the proposed project, key financial indicators are
as summarized below:
Clearances Required
Filling of Industrial Entrepreneur’s Memorandum (IEM) with the Secretariat of Industrial Approvals
(SIA), Department of Industrial Development, Ministry of Industry, New Delhi
Registration with Ministry of Food Processing Industries (MOFPI), through state nodal agency GAIC,
to avail benefits of scheme for food processing industry - under Agri Infrastructure Project category
Approach state office of National Horticulture Board for availing incentives under the scheme for
Vegetable Pack house and other post harvest infrastructure facilities including cold chain
transportation.
Agencies to be Contacted
Industrial Extension Bureau, Gandhinagar
Mott MacDonald Pvt.Ltd, Ahmedabad
Gujarat Agro Industries Corporation Ltd. Ahmedabad
AF-30 5