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Project Charter

Project Charter

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Published by rastogi parag
This is a sample charter on mango processing plant
This is a sample charter on mango processing plant

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Published by: rastogi parag on Feb 28, 2010
Copyright:Attribution Non-commercial


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Project Charter
Mango pulp processing plant
Project Charter 
Project Title: Establishing a processing plant for canned mango pulp
Prepared by: team 5Date: 17 Mar. 09Version:
Background to the Project 
The project is for establishing a unit to manufacture canned mango pulp. The demand for the product is increasing due to development of mango beverage industry. Varieties which havelow fibre and high quantity of pulp are best suited for making pulp. Totapuri and Neelamvarieties in the Southern Region, Chousa and Langra in the Northern and Central Region can be considered as suitable.
 Aims & Objectives:
The aim of the project is to fulfil the demand of consumers which are in the processing of mango pulp into finished items like mango juice and other beverages. Potential customerswill be processing companies and exporting companies.
Criteria of Success:
The export potential of mango pulp is very high. Domestic demand for mango pulp remainsfor through out the year. About 6000-7000 tonnes are the mango pulp demand in the processing industry which gives a wider scope for catering B2B segment. The present projectis to be established in A.P. which is the home for first flush of mango in the country, and hassignificant proportion in total mango availability. Hence procurement will not be a problem.
Consequences of Failure:
A failure in this project can lead to huge financial losses. A proactive approach standingagainst the any type of situation is required. Since it’s a very lucrative market, in this marketcould attract others to follow while taking advantage of our failure and may possiblyannihilate us for longer period.
Few assumptions have been kept in mind.
Since it’s a capital intensive project so not easy to emulate.
Special knowledge of mango procurement and strategic planning is required.
Hyderabad is one of the potential area for mango plantation so closer vicinity givesadvantage.
Plant is based in MANAGE itself, so extension facilities are available as per need.
Many horticulture farmers and traders do come for training in MANAGE, so closer contacts can be made easily. In near vicinity major agricultural institutes likeANGRAU, NIRD and NAARM are present which gives strategic advantage to us.
Since promoters come from agri-background and have management acumen is samearea, so it is advantageous for understanding the rigmarole of the project. 
Some of the factors are
Huge capital requirement
 Not established market but a growing one.
Lack of market research.
Agri commodities are always dicey investment.Steps taken
Fund raising from bank. Application has been filed.
Constantly watching the market, and taking initiatives to grow the market.
In future would like to conduct market research on our own.
Risk Analysis:
Primitive crop management facilities, erratic yields, diverse practices for assessingfruit maturity and high incidence of pests are the problems for the processors. Sinceit’s a production related problem so we would join with farmers who are specializedin mango farming. And for further support extension services could be an alternative.This risk is very pertinent but can be dealt with preplanning and monitoring.
There is also no sufficient process control and it leads to variations in product quality.For this we have detailed out a strict quality manual which will guide in takingdecisions wisely. The risk is not that much high.
Alternate bearing of mango is causing supply and price fluctuations. The profits in the'on' year have to be split in order to take care of the 'off' year. For this we have setdown procurement plan in advance. The risk is too high but can be managed with proper planning.
Water and power are essential inputs in canning industry. Each canning unit has to setup its own generator and water lifting system adding to the cost of manufacturing. For this we have plans to tackle problem.
In a NABARD study in 2001, it was found that profit margins were 16% in canningunits and the ratio of net profit to sales is low. It highlights the fact that the activitiesoffer only nominal profits and revenues will be under strain if demand for the mango products is not sustained. It’s an uncontrollable factor, but we have laid out plans totackle the problem. Risk is high.
A limited domestic market is a serious constraint facing the processed mangoindustry. Estimates of supply-demand position for major processed foods both in thecountry and overseas are also not available and the industry is in information vacuum.Since market is growing, so it does not seem to pose a potential threat. And in futuredemand seems to grow on the basis of opinions of experienced players of the market.

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