Pickle Project Report 1v18s

Abstract: A project proposal for Pickle manufacturing unit by ---------------

Project Report

Foods Brand Name: Product: Pickle 1

Year: 2013 Project Prepared By : Prudhvi.G 77993 61121

PRO JECT REPORT

Contents S.No

2

Section

Pg No

1.

Company Profile

03

2.

Product Details

04

3.

Raw materials

04

4.

Production

05

5.

Basis & Presumption

05

6.

Implementation Scheduled

06

7.

Pollution Control

07

8.

Energy Consumption

08

9.

Financial Aspects

09

10.

Working Capital

10

11.

Means of Finance

11

12.

Contingency Plans

12

12.

Additional Information

13

13.

Sources for Materials

15

14.

Raw materials

16

15.

Marketing Details

17

pickles & Spices

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Company Profile Name of the company : ---------------Brand name

: --------------

Product category

: Food

Product Commodity

: Pickles

Year

:

Varieties: Mango Avakai Cut Mango Mango Thokku Lemon Mix Veg Tomato Gongura Ginger Citron Green Chilli Red Chilli Garlic Bitter Guard Coriander Leaf Mango Ginger

3

pickles & Spices

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pickles & Spices

About Product: Pickles and chutneys add to the palatability of meals and snacks and enjoyable. Pickles gain Importance in the Indian menu. Pickles are made from various vegetables like Lemon, Mango, Green chillies, Amla, Tomato and etc. Preservation of fruits and vegetables is an old art and a variety of these products are made in the Indian homes. However, the taste and method of preparation differs from though the basic principle of pickling by curing of vegetables by salting, acidifying with vinegar oil and spices with traditional contemporary formula. The two versions of pickles are: -

Pickles with garlic flavour Pickles without garlic flavour

Both the versions of pickles are consumed along with staple foods such as chappati, bread and etc. Traditionally pickles are prepared at home. However during recent years large number of brands has invaded the market and people find it convenient to purchase branded pickles than prepare at home. The demand for pickles & spices are on the increase both in domestic and export market. The present production of pickles and spices are increasing year after year due to increase in consumption level and improved in economic situation. The popular varieties of pickles are mango pickles, lemon pickles, mixed vegetable pickles, tomato pickles & etc Although, a number of brands are available in the market still there is a good scope for good quality pickles. Raw Material: The seasonal availability of different vegetables are as below: 1. Tomato : March to July 2. Mango: April to June 3. Remaining vegetables: Almost throughout the year

4

All the raw vegetables materials are locally available. Since the availability of vegetables are seasonal, the production scheduled would have to be planned keeping in view the availability during a particular season. The raw materials are to be processed during a particular season, prepare sured, dehydrated and stores for ready use all round the year. Powder spices are the other raw material of importance in pickles preparation. They are cleaned, sieved reed mechanically and ground to particles size before use. The other important ingredients are edible oils such as sesame oil/mustard oil, which is available easily round the year. The packing Raw Material will purchase from nearest dealers who sell for best price.

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pickles & Spices

Production: Technology/ Manufacturing process: Fully matured fresh raw mangoes/ lime/other vegetables are washes and cut to uniform sizes, brine cured at optimal conditions or are directly mixed with salt and other ingredients for preparing the pickles. Clean and dried spices like red chilli, turmeric and mustard are ground separately and mixed with the cured or fresh mango, lime pieces etc along with edible oil, garlic paste, vinegar etc. The prepared fresh pickles have to be cured for a week in plastic carboy or barrels. Periodical mixing will help progress uniform salt equilibrium cured pickles are then packed in dry bottles, sealed with vaded caps, labelled and finally packed in CFB boxes. Installed Capacity: A) B) C) D)

Installed capacity No of working days Optimum capacity utilization Annual production

: 3.0 Tons/ Day : 30 Days/Month : 100% : 1058.4 Tons

Location: The plant can be located anywhere in the vicinity of towns in hygienic places, however proper supply of electricity and water has to be ensured.

Basis and presumption: The basis for calculation of production capacity has been taken on a single shift basis on 95% efficiency. The maximum capacity utilization on a single shift basis for 300 days a year. During the first year and second year of operation the capacity utilization is 90% and 95% respectively. The unit is expected to achieve full capacity utilization from the third year onwards. The salary and wages , cost of raw materials, utilities, rents, etc are base on the prevailing rates in and around imphal. These cost factors are likely to vary with time and location.

5

Interest on term loan and working capital loan must be preferably current rate. Otherwise, the rate of 12% on an average may be taken. The cost of machineries and equipments refer to a particular make/model and prices are approximate.

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pickles & Spices

The breakeven point percentage indicated is of full capacity utilization. The project preparation cost etc. Whenever required could be consider as pre-operative expenses. The essential production machinery and test equipment required for the project have been indicated.

Project Implementation scheduled: The major activities in the implementation of the project listed and the average time for implementation of the project is estimated at months: S. No 1. 2. 3. 4. a) b) c) d) 5. 6.

Event

Period

Preparation of project report Registration and other formalities Sanction of loans by financial institutions Plant and Machinery Placement of order Procurement Power connection/electrification Installation/Erection of machineries/Test equipments Recruitment of technical persons Commercial production Total

Quality Standards: As per customer’s satisfaction. Production capacity per annum: a. Quantity b. Value

: :

Motor Power: 60 Hp(Appx.)

6

1058.4 Tons per Annum Rs, 93,07,800/-

done 1 months 2 months 1 month 1 month 1 month 1 month 3weeks 1 month 7 months, 3 weeks

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pickles & Spices

Pollution control: The govt. Accords outmost importance to control environments pollution. The small scale entrepreneurs should have an environment friendly attitude and adopt pollution control measures by process modification and technology substitutions. India having acceded to the Montreal protocol in sept. 1992 the pollution and use od Ozone Depleting Substance (ODS) like Chlorofluoro carbonsm Cabron Tetrachoride, Halons and Methyl Chloroform etc. Need to be phase out immediately with alternative chemical/solvents. A notification for detail rules to regulate ODS phase out under the environment protection Act, 1986 have been put in place with effect from 19th July, 2000. The following steps will be carried which may help to control pollution in industries where ever applicable: We are not tentative to use Non bio degradable substances which cannot be recycled in future. We like to maintain Green environment which can reduce the carbon dioxide production during mechanical process. Machinery heating of the raw material may reduce the release of carbon dioxide during frying process. Separate dumping yard to dispose the vegetable waste and etc.

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pickles & Spices

Energy Conservation: With the growing energy needs and shortage coupled with rising energy cost, a greater thrust in energy efficiency in industrial sector has been given by the Govt. of India since 1980s. The energy conservation Act 2001, which provides for efficient use of energy, its conservation & capacity building of Bureau of energy Efficiency created under the Act. The following steps may help for conservation of electrical energy: a) Adoption of energy conservation technologies, production aids and testing facilities. b) Efficient management of process/manufacturing machineries and systems Quality control and testing equipments for yielding maximum energy conservation. c) Optimum used of electrical energy for heating during frying process can be obtained by using efficient temperature control. d) Periodical maintenance of motor compressors etc. e) Use of power factor correction capacitors. Proper selection and layout of lighting system, timely switching off the lights, use of compact solar lamps wherever possible.

8

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pickles & Spices

Financial Aspects: (i)Capital of Investment: Land (Planning to take Three 5000sq Sheds for Rs 50000/- rent per month (Advance not 10 years lease agreement in Rural industrial included) estate) Legal things which include Licensing for SSI, ISO, Rs 500000/FPO, Pollution, Hassaq, Electricity & Manufacturing (a )Total : Rs 550000/Capital for Raw Material: Raw Material Packing Material In Bank Reserve amount

Rs 2000000/Rs 1500000/Rs 1000000/(b )Total : Rs 4500000/-

Machinery and Equipment: Machine

Amount in Rupees

9 (c)Total: Lab:

Rs 7472630/-

pickles & Spices

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To maintain the Quality and health and hygienic controls we are planning to have a highly equipped lab which is most welcoming thing in Food industry2 (d)Lab Cost (Approximately): Rs 200000/Total Capital of Investment

: a+b+c+d

(Without Working Capital)

= Rs 12722630/-

(ii) Working capital per month:

(a) Staff & Labour

S.No 1

Designation

No of Persons 01

Salary/Month (Rs) 45000

Total Salary Per Month (Rs) 45000

General Manager-Operations (Sales & Marketing)

2 3

General Manager Supervisors

01 02

25000 10000

25000 20000

4

Production Manager s Store Staff Sales Staff Security Labour

01

20000

20000

02 06 10 02 35

10000 7500 10000 5000 200/Day

20000 45000 100000 10000 210000

5 6 7 8 9

Total working Staff

: 24 + 1

Total Labour

: 35

(I)Total Salaries Per month

: Rs 450000/-

(ii)Total expense limit for respective Staff: Rs 85000/-

10

Total month Salaries to be expected (i+ii )

=Rs 535000/-

Total salary per annum

= Rs 6420000/-

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pickles & Spices

(b) Raw Material Requirement: Vegetables or Brine:

Rs 775650/-

Packing Material:

Rs 1524015/-

Total Cost Monthly:

Rs 2299665/-

Total Cost per annum:

Rs 27595985/-

(c) Utilities per month: 1. Rent for Sheds

: Rs 50000/-

2. Electricity

: Rs 15000 – 20000/-

3. Gas

: Rs 4500 – 6000/-

4. Water

: Rs 2500 – 3000/-

Total

: Rs 72000 – 79000/-

Total cost per Annum: Rs 864000 – 948000/-

(d) Other contingent expense: S.No 1. 2. 3. 4. 5. 6. 7. 8.

Particulars Telephone, Internet, Fax & Media Maintenance and repair Postage & Stationary ment & publicity Transport & Conveyance Insurance & Tax Consumables Misc Expense

Amount (Rs) 5000 7000 4000 25000 20000 20000 2000 2000 Total:

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Rs 85000/-

Total Cost Per Annum: Rs 1020000/-

pickles & Spices

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(iii) Total Working capital for one month

: Rs 2999000/-

(iii) Total Working Capital for Annum

: Rs 35988000/-

Means of Finance: S.No 1. 2.

Particular Fixed Capital Working Capital for three months

Amount (Rs) 12722630 8997000

Total capital of investment with three months working capital a) Promoters Contribution b) Term Loan

(20%) (80%)

: Rs 21719630/: Rs 4343926/: Rs 17375704/-

Turnover per annum: By Scale of Pickles

: Rs 67327560/-

(100g, 500g & 5kg)

Profit per Annum (Before Tax): Turnover per annum – Cost of production per Annum

= Rs 67327560 - 35988000 = Rs 31339560/-

Net Profit Ratio

= (Profit/annum) x 100 (Sales/annum)

12

= 31339560 x 100 67327560 = 46.54%

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Rate of return

pickles & Spices

= (Profit/annum) x 100 Total Capital Investment = 31339560 x 100 48110630 = 65.14%

Contingency Plan:

The contingency plans for ---------Foods business have been classified below: -

In the business, there are Directors who have just invested to start up the business. They will come handy if the business undergoes or faces a loss at the time of uncertainty.

-

We will assure our product sale by means of special insurance which can help us if anything happen wrong to the product quality while in Transport.

-

Moreover, ---------- have maintained a general reserve of 10,00,000 Rupees. This can be later used in the business in paying off the debts.

-

If any uncertainty arises like if the business is not able to meet the target at the specific time with the desired set price, then the business has a contingency plan that it will change the pricing strategy from cost plus pricing to penetration pricing strategy to stop the total loss.

13

Although the happening of an uncertainty event is highly inevitable, it cannot be avoided. The management of the organisation has worked to best of their knowledge

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pickles & Spices

in deg these entire contingency plans by considering all the factors which the business comprises of.

Additional information’s:

The project profile may be modified /tailor to suit the individual entrepreneurship quality, production programmed and also to suit the location characteristic, wherever applicable. The electronics technology is undergoing rapid strides of changes and there is need for regular monitoring if the international technology scenario. The unit may therefore, keep abreast with the new technologies in order to keep them in pace with the developments for global competition. Quality today is not only confined to product or service alone. It also extends to the progress and environment in which they are generated. The ISO-14004 defines standards for environmental management system for Acceptability at international level. The unit may therefore adopt these standards for global competition. The margin money recommended is 25% of the working capital requirement at an average. However the percentage of margin money may vary as per bank discretion.

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pickles & Spices

Name and Address of the Machinery & Equipment Suppliers:

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Raw materials:

pickles & Spices

Packing materials:

(For 100 ton production) Approx – 10 to 20 %

item CHILLI POWDER FENUGREEK SEEDS MENTHI KOREIA MUSTARDS SEEDS(BIG) MUSTARDS SEEDS(SMALL) CUMIN SEEDS CORIANDER SEEDS BLACK GRAMS BENGAL GRAMS ACITIC ACID CITRIC ACID ROUND CHILLIES CHILLIES(DRY) G.OIL(Refind) P.OIL(Refind) R.B.OIL(Refind) M.OIL(Refind) S.OIL(Refind) SALT ASAFOETIDA(KABUL) ASAFOETIDA POWDER TAMARIND(Karripulli) JAGGERY(White colour) COCONUT(DRY) CHANNADHALL SBZ TURMERIC POWDER

16

kg 5200 1200 700 1000 720 170 150 500 300 550 550 500 100 600 500 8000 80 0 1000 2.5 50 3000 2000 10 20 15 50

BOTTLES 200G BOTTLES 300G CAPS MATEL 200G CAPS MATEL 300G WONUP CAPS PLAIN 300G RED CARTONS (12 X 300G) CARTONS (24 X 300G) CARTONS (30 X 300G) CARTONS (4 X 5KG) CARTONS COMMN(10KG P, 5KG P) CELLOPHANE PAPER GUM ( CELLOPHANE ) GUM ( LABLE ) GUM TAPES PLAIN PET JAR 1KG PET JARS 100G PET JARS 500G PET JARS 5KG POUCHES PLAIN 10KG POUCHES PLAIN 1KG POUCHES PLAIN 500 G POUCHES PLAIN 5KG SLEEVES(FULL) STRAPING PINS STRAPING WIRE ROLL WADS 300G Labels

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pickles & Spices

Marketing Strategy : 1. Promotion Promotion is three catragies , 1 poster & catlogs 2.Banners 3. wall paints & Flexi Boards. ment Budget Starting ; 2 to 4 Lakhs.

2. Price Price is very frequently in market price .

3. Product Product Quality is market bases & Customer bases

Market Launch Places: First Market Searching in SS and Distributors and Sales Officer Appointed , After product Launching.

1 Month : Srikakulum , chittoor or Hyderabad. 2 Month : Tirupati, Nellore, Anatapur. 3 Month :Vijayawada , Rajamundry or Anakapalli. 4 Month : Marketing Check and Analysis Next place. First Six Months order is Each Super stockiest Order : 1 lakh to 2.5 Lakh After Brand Established and product Quality , Service is well known , Market Percentage is very High ( 20 to 45 %) Each SS Point : 1 Sales Officer , 1 Rep

Sales Employees Salaries : 1. 2. 3. 4.

Sales Rep : 8000 Sales Officer : 12000 Senior Sales Officer : 15000 Area Sales Officer : 18000

Note : Quality , Damages, Service, And Any Other Problem with in 45 to 60 Days Company Will Be Assure Credit Note .

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pickles & Spices

Pickles Project Proposal

S.No 1 2

Factory Advance

Advance

400000

3

Licence

Licence , FPO, Current , water.

150000

4

Design

Logo , Labels,Poster,Catlog, Banner,Danglor,Boards,Visiting Cards,

130000

Blender- 500 kg Capacity Pulper D.P Lemon Cutting Machine Water Plant

600000 150000 100000 90000 200000

SS Stands ( For Packing Purpose ) Cans- 60 lts , 125 lts , 225 lts 1000 to 1500

80000

5

Machinery Equipement

6

Cans - Plastic Drums

7

Brines

800000

All Fruits & Vegtables Varieties Brines (Minium 75-100 tons )

900000

Ra w Ma terials - Plan for 1 Month & 2 Month 15 to 20 Tons

250000

Pa cki ng Ma terial - 5 Kg pet ja r-5000, 1 Kg Pet Ja r-3000, 500gms-5000, 100gms or 200 gms -30000,Ca rtoons5kg,1kg,500gms , Gift box, Wads , Cellophan paper, Label Gum, etc..,

500000

8

Store & Godown

9

Factory Equipements

Others - Gas, Trolle ys , Plasti c buckets , Aluminiuum Bouls- s mall & Big Etc…,

200000

10

Factory Staff

s Ma nager-1, s Incha rge (All purpose )-1,producti on Manager -1 , Supervisior -1, Experience Labour - 4 , Normal Labour- Approx Salaries - (Every Month)

1500000

11

Factory Maintaince

12

Marketing Staff

13

Promotion

Total

18

Abstract : A Project Proposal For Pickle Small Manufacturing Unit Approx Details Factory Establish Amount Factory Rent 100000

Approx -Every Month Maintance & others Factory Works ( Turn Over- 25 to 32 tons ) Marketing Sales - Salaries (Every Month) Adver tisement - Starting 1 Month to 4 Month ( Posters & Banners scheme

110000 150000 100000

6510000

70 lakhs- Approx

Thanks & Regards G.Prudhvi