INTRODUCTION India is an agricultural country and horticulture is developing rapidly. There is ample scope for the food processing industries. India being a country where the king of fruits mango is about 1/3 rd of the total production of the world. In India, mango as a raw material is available on a very large scale. Mango is a base to produce hundreds of food products. It can be exported to different countries. The product chosen in this project is mango sweet. (Amba Wadi) It has got its own taste and can be manufactured with very small fixed assets. Now-a-days the tendency of the people is to eat the ready made, tasty, fresh and durable products. This Ambavadi can be marketed and kept
Transcript
INTRODUCTION
India is an agricultural country and horticulture is developing rapidly.
There is ample scope for the food processing industries. India being a
country where the king of fruits mango is about 1/3 rd of the total production
of the world.
In India, mango as a raw material is available on a very large scale.
Mango is a base to produce hundreds of food products. It can be exported to
different countries. The product chosen in this project is mango sweet.
(Amba Wadi) It has got its own taste and can be manufactured with very
small fixed assets. Now-a-days the tendency of the people is to eat the ready
made, tasty, fresh and durable products. This Ambavadi can be marketed
and kept without any damage for at least 6 to 8 months without changing the
original taste.
The entrepreneur has his own farms of mangoes and that is the main
reason he is starting this project of manufacturing Ambavadi.
REASONS FOR CHOOSING THE PROJECT
1. AVAILABILITY OF RAW MATERIAL
2. INCREASED DEMAND FOR READYMADE FOODS
3. GOOD OPPORTUNITIES FOR EXPANSION OF THIS BUSINESS.
4. NEED OF LESS INVESTMENT
5. KNOWLEDGE OF THE PRODUCT
LOCATION OF THE UNIT
Location of the unit is in the farm itself at Vannali Tq.Degloor
Dist.Nanded.
Reasons for selecting the Location :
1. The raw material i.e. mangoes is available in the farm itself.
2. Labour Supply : Labour supply is easily available in the rural area of
the village.
3. The raw material and unit being in the same field, the transportation
cost will be minimum.
LEGAL FORMALITIES
Certain legal formalities in relation to this project will be completed.
These are :
1. Unit registration under SSI.
2. An approval letter from DIC.
3. Power sanction letter from the MSEB
4. Permission from Labour Office Commissioner regarding rules of
wages, provident fund, safety etc.
5. Registration certificate from Foods and Drug department Maharashtra.
RAW MATERIAL FOR AMBAVADI.
1. Mangoes
2. Sugar
3. Edible Colours
4. Preservatives
PACKAGING MATERIALS.
1. 60 GMS. PP Bags.
2. 125 gms. PP Bags.
3. 250 gms. PP Bags
4. Printed cardboard boxes.
FINISHED GOODS.
There is only one product. i.e. Ambavadi.
MANUFACTURING PROCESS
Ambavadi being food item, many precautions will have to be taken
while manufacturing to avoid any sort of fungal infection and other
damages. The machinery is very simple and the production will be done
batchwise.
PRODUCTION PROCESS
RAW MATERIAL
WASHING AND CLEANING OF RIPE MANGOES
TREATMENT OF ANTIFUNGAL SOLUTIONS
EXTRACTION OF PULP
CONCENTRATION OF PULP UPTO DEFINITE VISCOCITY
MIXING WITH COMMON SUGAR
DRYING AND PACKING
ADVERTISING
Advertising attracts the customers and helps them to get the best
product. The advertisement of the product will be done as follows :
1. Stickers.
2. Local Cable Network.
3. Banners.
Apart from advertisement the manufacturer has to develop a very
good market network, districtwise through the distributors and dealers with
attractive discount.
Advertising along with the perfect marketing network helps to push
the product in the market very easily.
SWOT ANALYSIS.
STRENGTH
1. Demand of the new and tasty food product is too high in the market.
2. A class of people in the society is in search of new products, They do
not care for the cost of the product.
3. The process is very simple But it is very difficult to product mango
mawa from mango pulp on very small scale at home and it is time
consuming.
4. The quality of product and a new taste of the people helps for the
marketing.
5. The product being new in the market will have no competition.
WEAKNESS
I do not find any weakness in the prroduct as of now.
OPPORTUNITIES.
1. Instead of Kesar Ambavadi if it is pulverised in a very fine powder
form it can be used in the milkshake.
2. This product can be sold through any food shoppee.
3. The product has a long shelf life so that in attractive packing it can be
presented to relatives.
4. Being a natural product, it can be replaced for toffees for children.
THREATS.
1. As the cost of production is less, there is threat of new competitors in
the business.
Specifications of Layout
Working Shade 250 Sqm.
Security Cabin 10 Sqm.
Scrap Room 30 Sqm.
Toilet Block 10 Sqm.
Total Builtup area 300 Sqm.
Financial Statements
UTILITIES (MONTHLY)
Electricity bill and Telephone Bill 5000
Advertisement 2000
Packaging 3000
Transportation 3000
Total Utility 13000
For 4 months 52000
Over Heads (Monthly)
Repair and Maintenance 1000
Misc. Expenses 500
Total Overheads 1500
For 4 Months 6000
FIXED ASSET
Building 7,00,000
Plant and Machinery 4,00,000
Electric & fittings 30,000
Furniture and Fixtures 50,000
Preliminary Expenses 20,000
Total Fixed Asset 12,00,000
Working Capital
Raw Material 1,60,000
Salary & Wages 54,000
Electricity bill and Telephone Bill 20,000
Travelling and Other Expenses 7000
Stock of finished goods 1,50,000
Packing Material 12,000
Sundry Debtors 1,50,000
Provision for contingencies 10,000
Transportation 12,000
Advertisement 15,000
Fuel (LPG Gas) 10,000
Total 6,00,000
Note :- Working capital assumed to be for a period of 4 Months. Sundry debtors will be outstanding for a period at 15 days.
COST OF PROJECT
Fixed Asset 12,00,000/-
Working capital 1,50,000/-
13,50,000/-
SALARY STRUCTURE
(MONTHLY)
Designation No. of Employees Salary / Wages
Semi skilled employees 2 5000
Watchman 1 2500
Employees 3 6000
Total 13,500
CAPITAL STRUCTURE
(MONTHLY)
Own Capital (20 % of Project cost) 2,70,000
Term Loan from Bank (65% of fixed asset) 7,80,000
Financial Asst. From DIC (25% of fixed asset) 3,00,000
Total 13,50,000
Interest calculation for term loan and its repayment schedule
1. Amount of loan : Rs. 7,80,0002. Rate of interest : 12% pa 3. Period of repayment : 7 years 4. No. of Installment ( per quarter ) : 265. Moratorium Period : 6 Months 6. Amount payable per installment : Rs. 30,000
Total 780000 362700 1142700Note:- Rate of interest is subject to change
Interest calculation for Financial Assistance
and its repayment schedule
1. Financial Assistance : Rs. 3,00,0002. Rate of interest : 4% pa 3. Period of repayment : 7 years 4. Moratorium Period : 3 years 5. Amount payable per installment : Rs. 75,000
