Proposal establishment

76
Project Proposal For Establishment
of
Mobile/Primary/Minimal processing Unit
Installed Capacity/annum : 150 MT
Promoters Share : 12.75 Lacs
Term Loan : 12.00 Lacs
Unsecured Loan : 2.00 Lacs
Name of the Bank :
Proposed Subsidy : 9.60 Lacs
Total Project Cost : 26.75 Lacs
By
M/s -------------------------------------------------------------------------
Submitted to
SHM Govt. of Uttar Pradesh

77
FORMAT FOR SUBMISSION OF PROJECT BASED
Mobile/Primary/Minimal processing Unit (Tomato based) BY PRIVATE
SECTOR UNDER NHM
1. Name of the Project : Mobile/Primary/Minimal processing Unit (Tomato
based) by
M/S
2. Type of Activity :  Preparation of other tomato based products from
crush/paste and purees
 Ketchup. Sauce & chutney are consumed directly
with other foods. instant tomato juice powder
used in preparing juice, puree or paste .
 Dehydrated tomato powder used in making
instant soup-mixes
 Preparation of other Canned tomato largely being
exported.
 Sorting, grading, packing Preservation of Fruits,
vegetables and other perishable items.
3. Objectives : To provide services of value addition, minimal processing,
primary processing, low cost preservation and storage of
semi-finished as well as finished products.
4. Location of the Project with
address
a) General Area : Kh. No.:
Vill.:
Teh.:
Distt.:
b) Category of beneficiary :
5. Constitution :
Public Limited
Company/Private Limited
Company/Registered Society
Association/Federation
Producer Company/
Proprietorship Firm
Partnership concern/Individual
person/Self help group(SHG)
6. Management : Private
7. Brief background of promoter : The Company/firm/association/SHG is promoted by ------------
-------Directors namely Shri ------------- and shri ---------------.
All the directors of the company are agriculturists and have
good experience.
8. Cost of Project : (Rs. In Lacs)
a) Land
(If purchased new
along with
documentary proof)
b) Building
c) Plant & Machinery
d) Contingencies
e) Misc. Fixed Assets
f) Working Capital
margin
g) Pre operative Exp.
h) Other Current Assets
& Securities
:
:
:
:
:
:
:
:
:
:
On Lease
10.00
12.50
0.15
1.00
2.50
0.10
0.50
Total Rs. : 26.75

78
9. Means of Finance : (Rs. In Lacs)
a) Promoter Share
b) Bank Term Loan
c) Subsidy
d) Quasi Equity
e) Unsecured Loan
:
:
:
:
:
12.75
12.00
9.60
-
2.00
Total Rs. : 26.75
10. Details of Cost of Plant &
Machinery /equipment
supported by quotation.
: Detailed list of plant & machinery/others utensils is required
as:
(A)For juice/pulp/beverages line : Pulper, Fruit mill,
Hydraulic juice press/screw type juice extractor, vacuum
filling machine, steam jacketed kettle, baby steam boiler,
utensils, knives set, SS top working table, washing tanks,
crown corking machine, lug cap sealing machine, PP Cap
sealing machine, homogenizer, grinder(pulverizer), the other
machines/equipments shall be required are canning line,
boxes, retort/autoclave with steam blanching facilities, sealing
machines etc. Plastic barrels, jars, bottles, chemicals, DG
Generator set etc. Price (Rs.) : 12.50 lacs
(B)For candy/tuti fruiti base/ dried products line : Along
with pulp making the another product tutti-frutti with Annual
rated capacity of 75 tonnes based on 2 shift working shall be
started. To install this production capacity, following machines
shall be required:
Papaya peeling machine with SS body, 3 HP electric motor
and other attachments ,Papaya slicing and cubing machine of
SS with
double rollers, SS hopper and 1 HP electric motor,
Diesel Furnace (Bhatti) with burners, fire bricks, oil cock,
blower etc. Electrically-operated drier with aluminum trays
,Heat-sealing Machine etc. cabinet dehydrator/sola
drier/other drier, steam blanching facilities, sealing machines
etc. Plastic barrels, jars, bottles, chemicals, DG Generator set
etc. Price (Rs.) : 12.50 lacs
11. Details of Building
construction and the cost duly
certified.
The details of estimate of production hall, testing facilities lab,
packing/labeling hall, storage godawn has been enclosed as
annexure -1 Price (Rs.) : 10.00 lacs
12. Area of operation with special
reference to Districts to be
covered.
Block :
Tehsil :
District :
13. Availability of raw material,
name of the cluster and District
along with the major crops.
Abundant quantity of Mango, amla, papaya, guava,& all
vegetables/spices available in the district as well as in
surrounding area throughout the year. at a glance the total area
in district is (ha) &
Total production in district is 000 MT.
14. Backward Linkage with
farmers with reference to
either providing services or
purchase of raw material.
The promoter also itself engaged in production of
fruits/vegetables as well as having good contacts with the
progressive farmers of their area. The beneficiary has well
linked with raw materials from local farmers for sorting,
grading, washing , primary & minimal processing as per the
demand of market. Moreover number of other farmers willing
to provide their raw materials for same purpose.
15. Forward Linkages- Analysis of
domestic and export markets,
tie up made for sale of Produce
and branding aspect.
Due to the shortages of availability of primary produce as
sorted, graded, washed & minimal/primary/secondary
processing for ultimate use of tertiary/final processing unit for
converting these produce to final finished products to be sale
in local/domestic/export market. The processor has to go

79
faraway places for procuring desired quantity to other
states/places at higher rates of semi-finished produce. Thus
there is ample of potential for more
minimal/primary/secondary/mobile processing units in that
area.
16. No. of farmers/ orchardist to
be benefited.
Approx. 100 farmers to be benefited.
17. SWOT Analysis. Strength :
 There is a abundant availability of raw materials such
as guava, mango, amla, papaya, vegetables,
ornamental plants ,herbal/medicinal plants & spices in
proposed area of district.
 The functional infrastructure unit is situated in
fruits/vegetable growing belt and having good network
of growers.
 Vast domestic market
Weakness:
 Low availability of adequate infrastructural facilities
 Lack of adequate quality control & testing methods
 Inefficient supply chain due to a large number of
intermediaries
 High requirement of working capital.
 Seasonality of raw material
Opportunity:
 Large crop and material base offering a vast potential
for agro processing activities
 Rising income levels and changing consumption
patterns
 Favorable demographic profile and changing lifestyles
 Opening of global markets
 Availability of capital subsidy from NHM to start a
business opportunity in local areas by converting their
raw materials to value added products as per the local
demands of the consumers/market.
Threat:
 Affordability and preferences of fresh food d
 High inventory carrying cost
 High packaging cost
 Natural Calamity.
18. Financial Analysis- IRR,
NPW, cost benefit Ratio,
Break even point, DER,
DSER, Projected balance sheet
etc.
The proposed unit has a local market demand oriented basis.
the unit shall be run very successfully by converting fresh
ungraded fruits/vegetables to minimal/semi process/value
added produce which is directly ready to consume/serve/use
products. The unit has great advantage for more profitability.
There is an ample scope to enhance their profitability within
stipulated course of time. The detailed financial parameters
reflects viability of the proposed unit.
19. Insurance of the fixed assets. Will Be Submitted Later if desired
20. Certificate from Pollution
Control Department.
No need of NOC from Pollution Control Board so far.
Although there shall be an arrangement of local
21. Name of the sponsoring bank
along with the details of
Techno-economical appraisal
reports, copy of sanction letter
and Detailed Project Report
(DPR) as submitted to bank.
The proposal has been financed by -------------------------as well
as self appraised by the beneficiary on the basis of local
requirements. The brief detail project report about availability
of raw material, utilities, miscellaneous assets, others
information elaborated as:
DETAILS OF THE PROPOSED PROJECT
Building
The construction /arrangement of building for value addition

80
shall be of about 1500-2500 sq ft.area for working/production
shed followed by storage and packing facilities. The
anticipated expenditure is Rs. 10.00 lacs.
Machinery
A detailed list of machinery is already furnished. The
anticipated expenditure is Rs. 12.50 lacs.
Miscellaneous Assets
A provision of Rs. 15,000 would take care of the needs.
Preliminary & Pre-operative Expenses
It is estimated that registration and establishment expenses and
other pre-production expenses like trial runs etc. shall be
Rs.10,000/-.
Working Capital Requirement
Working capital is a pre-requisite for the success of any
project. However, in view of very small scale of activities and
typical nature of customers, the bank would hesitate to provide
post sales facilities. Major item of raw material is guava,
mango, amla, papaya etc which cannot be stored for more than
2-3 days. Hence, it is assumed that the we will arrange at our
own fund resources as unsecured loans from relatives/friends
or bank if agree of Rs.250,000/- .
Raw Material
The all-important raw materials shall be sound, uniform
texture, and unripe but fully grown bigger sized. Other raw
materials like food grade colours and flavours and citric acid
shall be required in small quantity. Similarly, polythene
bags,jars,bottles are also readily available.
Miscellaneous Assets
An amount of Rs. 50,000/- is provided towards working tables,
weighing scale, exhaust fans and furniture.
Utilities
Power connection of 10 HP is sufficient. Around 1000-1200
ltrs. of water shall be required every day. Furnace oil or
kerosene consumption per day would be around Rs. 150/-.
Thus, annual expenditure on utilities at 100% activity level
would be Rs. 100,000/-.
22. Certificate regarding Non-
availing of subsidy from any
other Central/State Govt.
Departments.
Enclosed as desired by SHM in the affidavit format.
23. Social benefits with special
reference to employment
generation.
a) Direct employment
b) Indirect employment
c) Women/S.T/S.C.
employment
Yes , more than 12
Yes, approximately 35
Yes , approximately 30

81
24. Details of the sustainability of
the project with special
reference to its capacity to
generate income since only
one time grant is admissible.
Since the proposed unit has a moderate investment and there is
an ample scope to enhance their profitability within stipulated
course of time. The other benefits are as:
 Large crop and material base in clusters offering a
vast potential for agro processing activities
 Rising income levels and changing consumption
patterns
 Favorable demographic profile and changing lifestyles
 Opening of global markets
 potential of local/domestic/export demands of various
processed products
 Availability of capital subsidy from NHM/DASP to
start a business opportunity in local areas by
converting their raw materials to value added
processed products as per the local demands of the
consumers/market.
25. Implementation schedule Forwarding of Application submission 15
days
Site selection, bank loan formalities and commencement of
minor civil work
40days
Completion of technical civil work & placement of orders for
machinery
45days
Erection, installation and trial runs of unit
15days
26. Amount of subsidy sought Rs.9.60 Lacs.
Financial assistance in the form of grant is available from the
Ministry of Agriculture, NHM, Govt. of India, towards
expenditure on capital investment for eligible projects.
Recommended & Forwarded Signature of candidate
(By DHO/DDH/PRINCIPAL) Address--------------------------------
Phone & Mobile No.: ---------------

82
PERFORMANCE & FINANCIAL
INDICATORS yr yr yr yr yr yr yr yr
S.No. Particulars I II III IV V VI VII VIII
1 Paid up Capital
2 Reserve & Surplus
3 (-) Intangible Assets
4 Tangible Net Worth (1+2+3)
5 Term Loans
6 Other Term Liabilities
7 Unsecured Loan
8 Total Term Liabilities (5+6+7)
9 Capital Employed (4+8)
10 Net Block
11 Investment in allied/group concerns
12 Investment in Others
13 Debtors>6 months
14 Other Non Current Assets
15
Total Non Current Assets
(11+12+13+14)
16 Inventory
17
Debtors Receivable (less than 6
months)
18 Other Current Assets
19 Total Current Assets (16+17+18)
20
Bank Borrowings/Commercial
Papers
21
Sundry Creditors/ Other Current
Liabilities
22 Total Current Liabilities (21+22)
23 Net Working capital (19-22)
Operating analysis
Net sales
Profit before tax/loss
Provision for tax
Profit after tax/loss
Depreciation and other non cash
expenses
Cash Accrual
Ratio Analysis
1
Current Ratio (Current Assets/ Current
Liabilities)
3
Debt Equity Ratio (Term
Liabilities/Tangible
Net Worth)
4
Leverage ratio (Term + Current
Liabilities/
tangible Networth)
5 Net Profit to Sales (%)
6 DSCR 1.42 1.46 1.58 1.69 1.75 1.80 1.85 1.94
7 Average DSCR 1.69
8 Break Even Point 69.08%

83
Minimal Processing Unit (TOMATO BASED PRODUCTS):
THE PRODUCTS:
Tomato products such as: juice, puree, paste, ketchup, sauce, powder, chutney, canned tomatoes,
tomato gravy etc. are very popular and are in good demand in domestic and export markets. Here,
some of the important products are discussed in this profile.
PRODUCT APPLICATIONS:
 Preparation of other tomato based products from paste and purees tomato paste and puree
also used in producing baby foods
 Ketchup. Sauce & chutney are consumed directly with other foods. instant tomato juice
powder used in preparing juice, puree or paste .
 Dehydrated tomato powder used in making instant soup-mixes
 Canned tomato largely being exported. .
MARKET:
The demand and applications for processed tomato products are increasing every year. Based on
applications as mentioned above, the major market segments are: retail outlets for direct sales, food
processing sector, food service sector and export market.
As per statistics of AIFPA-New Delhi, India produces about 6 lakh MT of processed fruits and
vegetable products ib which tomato products alone account for 10% of total production. as
estimated by CLL-Mckinsey report, India will need purees, ketchups and jams worth Rs.600 crores
per annum by 2005 AD. the same report forecasts 15% growth of total processed fruit and
vegetable products sector in which tomato products have major contribution. APEDA has reported
export of 2225 Mt of these products worth Rs.7 crores for 1995-96.
SUGGESTED PROJECT SIZE:
SUGGESTED INSTALLED CAPACITY:
It is proposed to crush 1 MT of fresh tomatoes per hour ,i.e., 24 MT per day. Annual capacity will
be 7200 MT of fresh tomatoes handling. Assuming about 15% losses in procurement,
transportation, storage and handling. Total will be 6110 MT per annum
Installed capacity of tomato processing.. : 7200 Mt '
Actual annual handling of fresh tomatoes : 6000 Mt
Annual production of tomato juice ... ....................... : 2100 Mt
Other tomato products are produced from tomato juice.
TYPICAL PRODUCT -MIX:
Tomato paste(24 to 28 deg brix) 300MT
Tomato puree(08 to 12 deg.brix) 300Mt
Tomato ketchup(26% to 28% solid) 350Mt
Tomato sauce (25%to 28% solids) 150 Mt
Tomato chili sauce(25%solids) 100Mt
Tomato chutney(min 50% solids) 50Mt
Total production of tomato prods. 1250MT
TECHNOLOGY ASPECTS:
Evaluation & Selection of available technology:
Still tomato products are commercially manufactured by using thermal processing technology.
However, there are many innovations in preprocessing, sterilization and filling/packing equipment
maximum efficiency, quality and speed. Aseptic processing and packaging is a land mark
achievement in thermal processing technology. Adoption of aseptic technology requires very high
investment and special skills. Therefore, it is suggested to implement this technology at the phase
of the project

84
MANUFACTURING PROCESS IN BRIEF:
Tomatoes are first washed, inspected, sorted (manually) and fed onto the processing line. It is
desirable to process the tomatoes of same maturity and colour to get final product of consistent
quality. Tomatoes are subjected to heating in hot-break system prior to crushing into tomato juicer.
while crushing into juicer, tomato juice and seeds are separated. Tomato juice collected in s.s.
Tanks, pumped to standardization tanks followed by pasteurization in scrap surface pasteurizer.
Tomato juice is then concentrated under vacuum for manufacturing tomato puree. Tomato puree is
the first form of concentrated tomato juice. Tomato puree is processed further to make tomato
paste, chutneys, ketchups and sauces. Tomato ketchup and sauce are manufactured by adding
required quantity of sugar, salt, spices Preservations and food grade colour. Thus prepared
ketchup/sauces are filled into bottles under vacuum and bottles are then sealed perfectly.
PLANT & MACHINERY SUPPLIERS:
A) MAIN PLANT & MACHIMNERY SUPPLIER:
1- Jawala Engineering Co.
12, Surve India. Estate,
Sonawala Cross Rd. No.1
Goregaon (East),
Mumbai-400063
3- Gardeners Corporatioin
6, Doctor Lane
P.B.No 299
New Delhi-llOO01
5- Cantech Machines
13, Vora Bhuvan, Kings'
Circle, Matunga (C.R.)
Mumbai-400019
TECHNOLOGY SOURCES:
CFTRI- Mysore & department of horticulture & food processing, lucknow can provide complete
knowhow .Many professional consultants are also available.
6- Bubber Machine Tools 407,
Dalmal Chambers, 29,
New Marine Lines,
Mumbai-400020
2- Goma Engineering PvtLtd.
Majiwada, B/H Universal Petrol
Pump,
Thane-4000601
4- Gadekar & Associates PvtLtd.
304 Sector 21 A,
Faridabad-121001

Proposal establishment

More Related Content

Similar to Proposal establishment (20)

Recently uploaded (20)

Proposal establishment