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BUSINESS PLAN PROJECT REPORT on
“Fruit juice Processing, Tetrapackaging & Supply in Delhi, Ghaziabad & Noida”
A report submitted to IIMT, Greater Noida in the partial fulfillment of full time Post Graduate Diploma in HUMAN RESOURES Management.
Submitted To: Dr. D.K.GARG CHAIRMAN IIMT, GREATER NOIDA
Submitted By SUPRIYA RAI HRR 2050 SHAFAQ RIAZ HRR 2034 PGDHR SEC-P
ISHAN INSTITUTE OF MANAGEMENT & TECHNOLOGY 2, KNOWLEDGE PARK, GREATER NOIDA Website- www.ishanfamily.com
16. S.NO. 17. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10 11. 12. 13 14. 15. LEGAL ASPECTS CHAPTERS CONCLUSION PREAMBLE PURPOSE OF STUDY THE BUSINESS (S.& S.GROUP LTD.) LOCATION MANPOWER REQUIREMENTS MACHINERY REQUIREMENTS TECHNICAL KNOW-HOW PLANT LAY-OUT DEMAND FOR PRODUCT SUPPLY & SOURCES FOR RAW MATERIALS MAJOR COMPETITORS OF FRUIT JUICE INDUSTRY IN INDIA STATEMENT SHOWING RECIEPTS & PAYMENTS BREAK EVEN POINT ANALYSIS WHY ARE WE INTERESTED IN BUSINESS TAX APPLICATION 23 PAGE NO. 24 2-3 4 5-6 6 7 8-11 12 13 13-14 14 15-17 18 19 20-21 21-22
for minimizing pre/post harvest wastage. The food processing industry provides vital linkages and synergies between industry and agriculture. high protein foods etc. In this series we are moving for fruit juice processing. consumption. packaging and marketing. India is looking for investment in infrastructure. to encourage commercialization and value addition to agricultural produce. our objectives are- 3 . generating employment and export growth. sorting. rising per capita income. plantation. which is now a days.FOOD PROCESSING Food processing involves any type of value addition to agricultural or horticultural produce and also includes processes such as grading. increased literacy. export and growth prospects. Rapid urbanisation. changing life style. very popular among the age group of 14 – 30 & above. At present the food processing sector employs about 13 million people directly and about 35 million people indirectly. India produces annually 90 million tonnes of milk (highest in the world) & 150 million tonnes of fruits & vegetables (second largest). Advantage in India• • • • • • • • India is one of the largest food producers in the world. milk and milk products. Well developed infrastructure and distribution network. The government has accorded it a high priority. mineral water. India has diverse agro-climatic conditions and has a large and diverse raw material base suitable for food processing companies. increased number of women in workforce. Soya-based products. Our target customers are women in homes. meat and poultry. grain processing and other consumer product groups like confectionery.leading to rapid growth and new opportunities in food and beverages sector. 50 per cent of household expenditure by Indians is on food items. alcoholic beverages. India's food processing sector covers a wide range of products fruit and vegetables. The Food Processing Industry sector in India is one of the largest in terms of production. packaging which enhance shelf life of food products. India has huge scientific and research talent pool . with a number of fiscal relief and incentives. fisheries. children & teenagers in form of in-home & out-home consumption. OBJECTIVEAs a great opportunity in this industry. chocolates and cocoa products. 200 million more consumers expected to shift to processed food by 2010.
MISSION &VISIONOur fruit juice products in tetra pack are aimed at getting more consumers to try this product and in turned increase the consumer base. So. We aim to capture maximum target costumers by providing them a healthy and nutritive product. We have an objective to serve our consumers with a tasty & healthy fruit product . Our juice is 100% juice with no water added and free from any type of colours and flavours. By taking advantage of health consciousness pervading the market we will introduce our product to increase our target customers.• • • • • Our intension is to grow the juice market by providing a new & great testing product to consumers at right value. the demand for healthy products is increased. With the market growing at a healthy rate and with changing life styles and with rising levels of health consciousness among consumers today. we are targeting to establish our company at the top as a pure & fresh juice provider company. So our vision is to cultivate a more personal & longer term relationship with customers. These fruit juices are free from any type of colours . 2. PURPOSE OF STUDY 4 . Our mission is to provide natural nutrients to the customers. which would also be full of nutrients without any preservatives. We are aiming at customers with more exotic tastes with some mix flavour of fruits. flavours and preservatives. We all know very well that the present era of business is full of cut throat competition.
fresh fruit from our raw material suppliers. needs & requirements of raw materials and proper distribution & promotion of products. We are very thankful to our honorable chairman sir to provide us a great opportunity to be aware about each activity related to our business proposal. THE BUSINESS 5 . After converting raw material into finished goods through various techniques. staff. 3. pure & healthy juice with different flavours. we start packaging of juice in tetra packs. We start processing of fruits by receiving the raw materials ie. direct and control the things. By starting a business in fruit juice industry. The purpose of the study of business proposal is to enhance our knowledge of entrepreneurship and to make our self introduce to the corporate world by establishing our own business. We came to know about the legal aspect of the company. we would come to know all the processes of manufacturing fruit juice. which would be full of nutrients without any chemical preservatives. It helps us to gain the practical knowledge about the entrepreneurship and organization that how the different departments work and coordinate with each other and how we have to plan. It is helpful to increase our decision making power. We put that fruits in process by using required equipments. organize. The tetra packing adds freshness & nutrient value to our product. In this we are aiming to manufacture fresh.Our business proposal is to set up a plant of fruit juice processing & supply.
the consumption of fruit juice intake home pack is estimated at 17. per capita consumption of fruit juice is at a fraction of liter ie.& 1 lt. explains that— • • • • Most preferred flavour is orange . The nutritive value of real fruit beverage is far greater than that of synthetic products . In India. Juice is to a great extent considered as a luxury. Our product “FRESHEN Juice” have orange.. We drink water in our meals. Thirst quenching. tetrapacks. whereas. Our FRESHEN fruit juices are full of benefits with the characterstics as Nutritive contents. Fulfill the customer’s need of Good Taste with Health.followed by apple. one starts the day with breakfast & a glass of juice.250 mn liter . but in west. culture & preferences and marketer has to use these diverse characteristics of market. 55% of respondents consume 1 liter packs at home and 45% of that use 200 ml pack. 500 ml. Findings indicate the most packaged juice drinking customers travel abroad on holidays. where population is getting more & more health conscious and realizing the important nutrient values of fruits and that are making a part of their daily diet. Awareness of trial level of packaged juice is higher in Delhi in comparison to Mumbai. GROUP LTD. Drinking juice is not a part of our culture.carried out across 1200 adults in Mumbai & Delhi.(S. Easy to have on the breakfast table. A marketing research . 6 .which are being bottled & sold in large quantity through out the country. price point of product. not a necessity in our society. India is a market of diversity. apple & pineapple flavor in 200 ml. & S. 200 ml.diverse with regards to income.. Easy to carry & use in traveling.) India is a tropical country & has accorded a favorable reception to thirst quenchers such as fruit juice & aerated soft drinks. sweet orange & mixed fruit juice in India.
P. we have our plant & machinery with official operation departments. Here. The area required is 1500 sq. Promotion of products by using hoarding at bus stops. To develop customer base and building customer loyalty. LOCATION The envisage plant can be located in area where transportation cost to deliver the product to market can be minimized and source of material is adequate.Rs. Flexible & effective marketing mix including price.500 on bank loan @ 6% per annum. To create customer’s awareness regarding products. meter.1.KEY SUCCESS FACTORS – The main key strengths of our company. promotion.Rs. CAPITAL INVESTMENT. 54. 7 . which indicates the future growth of “FRESHEN” fruit juice Better technologies used in processing & packaging. Regional taste preferences.17. Sourcing of raw materials.35.08. Future plans To compete with existing companies in fruit juice industry.” NH-24 Near Vijay Nagar bypass GHAZIABAD (U. ADDRESS“S & S GROUP LTD. we are targeting to command 30% shares in next 5 years.17. Distribution strategies & reach in market. are as follows. 4. 54.) . To spend 15% of sales on promotional activities. distribution & products. red lights & other crowded areas. So VIJAI NAGER town of Ghaziabad is proposed to be the location for the envisaged plant.000 Owned Capital.Rs.500 Borrowed capital.
MANPOWER REQUIREMENTS MANPOWER SKILLED HR MANAGER MARKETING MANAGER SALES MANAGER PRODUCTION MANAGER FINANCE MANAGER NUMBER 8 1 2 2 2 1 SEMI-SKILLED ACCOUNTANT SALESMAN MECHANICS ELECTRICIAN CHEMIST OPERATORS SUPERVISORS STORE ENCHARGE 15 1 1 1 1 1 6 3 1 UNSKILLED LABORERS GAURDS TOTAL 14 10 4 37 6.5. MACHINERY REQUIREMENTS 8 .
The Pulper (Juice Extractor).1 • • • • • • Vapour outlet Charging hole BSP boss for pressure/vacuum gauge Necessary fittings for steam inlet Light & sight whole. Capacity -200kg-500kg /batch input. to 4000kg / Hr. The Machine is driven by Electric Motor consisting of rotary blades. pears & other vegetables.1 9 . Pasteurizer. Passion Fruit. Pineapple. Capacity -1MT-2MT/hour Vacuum Evaporator. vacuum pump.2 • Suitable for washing apples. Tomato.Rotary Fruit & Vegetable Washer. This machine is used to extract juice & pulp from fruits like Mango. Papaya & Vegetables. moisture trape. The Machine can be used as Finisher by changing the sieves Capacity -100 Kg. mangos. providing with glass Complete with condenser.1 • • • . scrapers along with the sieves.
• Fruit Juice Processing Plant • Fruit Juice Packing Plant Juice cooler. a crew of pickers is sent in to pull the fruit off the trees. Cold Storage The Manufacturing ProcessHarvesting/collection • When the mature fruit is ready to pick. available in different type and capacity Fruit juice Processing Plant- • Design. 10 . The collected fruit is sent to packing centers where it is boxed for sale as whole fruit. Milk Processing. Filler & Sealer machine• For filling juice in tetra packs & then sealing that pack finally. Testing & Commission of Fruit Juice Processing plant . where they are unloaded by a gravity feed onto a conveyor belt that transports the fruit to a storage bin. Engineering. Supply. Installation. or sent to plants for juice processing.• . The oranges are generally shipped via truck to juice extraction facilities.1 • For controlling ascorbic acid to prevent the reactions in fruit juice. Suitable for Fruit Processing.
At this point. Concentration • Concentrated juice extract is approximately five times more concentrated than squeezed juice. Concentration is useful because it extends the shelf life of the juice and makes storage and shipping more economical. Extraction • Proper juice extraction is important to optimize the efficiency of the juice production process as well as the quality of the finished drink. The pulp is separated from the juice by ultra-filtration and pasteurized.the fruits are sliced as they pass by a stationary knife and the halves are then picked up by rubber suction cups and moved against plastic serrated reamers. and eject a peel in about 3 seconds. The rotating reamers express the juice as the orange halves travel around the conveyor line. An inspector takes a 18 kg sample to analyze in order to make sure the fruit meets maturity requirements for processing.Cleaning/Grading • The fruit must be inspected and graded before it can be used. the juice can be chilled or concentrated if it is intended for a reconstituted beverage. The second type of extraction . The fruit solids are compressed into the bottom tube between the two plugs of peel while the juice is forced out through perforations in the tube wall. This process removes debris and dirt and reduces the number of microbes. TASTE uses steam to heat the juice under vacuum and force water to be evaporated. Proper size is critical for the extraction process. 11 . The fruit is rinsed and dried. ream. The certified fruit is then transported along a conveyor belt where it is washed with a detergent as it passes over roller brushes. or TASTE for short. There are two automated extraction methods commonly used by the industry. Juice concentrate is then stored in refrigerated stainless steel bulk tanks until is ready to be packaged or reconstituted. Modern extraction equipment of this type can slice. Juice is commonly concentrated with a piece of equipment known as a Thermally Accelerated Short-Time Evaporator. The first places the fruit between two metal cups with sharpened metal tubes at their base. Diluted with water. • The extracted juice is filtered through a stainless steel screen before it is ready for the next stage. The clarified juice containing the volatile flavorings is concentrated at 50° F (10° C) by reverse osmosis and the concentrate and the pulp are recombined to produce the appropriate juice concentration. Graders remove bad fruit as it passes over the rollers and the remaining quality pieces are automatically segregated by size prior to extraction.
color. and flavor. and depending on the design of the package. metal or glass bottles and cans can be preheated. Several pasteurization methods are commercially used. Proper blending of juice concentrate and other flavor fractions is necessary to ensure the final juice product achieves a high quality flavor. resulting in an aesthetically undesirably beverage.HOW 12 . it may immediately invert to sterilize the lid. Packaging/filling • To ensure sterility. Pasteurization • Pasteurization is still required to further retard spoilage. This step must be carefully controlled because during the concentration process much of the juice's flavor may be lost. Orange juice packaged in this manner has a shelf life of 6-8 months at room temperature. The preheated juice is further heated with steam or hot water to the pasteurization temperature. concentrate is pulled from several storage batches and blended with water to achieve the desired sugar to acid ratio. 7.Reconstitution • When the juice processor is ready to prepare a commercial package for retail sale.2° F (85-94° C) for about 30 seconds is adequate to reduce the microbe count and prepare the juice for filling. the containers are cooled as fast as possible. the pasteurized juice should be filled while still hot. pasteurized juice to preheat incoming unpasteurized juice. reaching a temperature of 185-201. One common method passes juice through a tube next to a plate heat exchanger. After filling. The filling head meters the precise amount of product into the container. TECHNICAL KNOW. Where possible. Another method uses hot. Typically. Pasteurization also inactivates certain enzymes which cause the pulp to separate from the juice. so the juice is heated without direct contact with the heating surface.
From starting up a company to taking feedbacks in last. To use internet facilities. suggestions. To take orders. is based on machineries like juice extractor. Fruit juice processor plant. To take feedback from customers side by internet. In fruit juice industry. Fax MachinesIt is required to send & receive the documents quickly. computer assists us To maintain the records & database of business. which are very essential. PLANT LAYOUT 13 . Telephones – For providing a proper communication channel in organization telephone facilities are there. fruits & vegetable washer. vacuum evaporator. It is time saving machine for collecting any type of written data. technologies are being used everywhere. juice cooler. It helps to communicate any message in a very short time period. EquipmentsThe whole manufacturing process of converting raw materials into finished goods. filler & sealer machines etc. 8. recipies. health tips & for many types of contest also. are- ComputersIn organizations.Now a days technology plays a major role in business. the technology.
etc) sell for a price ranging from RS.10. The present demand for the proposed product is estimated at 144 tonnes per annum.1. DEMAND FOR THE PRODUCT • • • • • This profile envisages the establishment of a plant for the production of juice with a capacity of 180 tonnes per annum. and allowing margin for wholesalers and retailers. Demand for fruit juice is forecasted to grow at the rate of 6% per annum . The average price would. Of this. Currently. the opportunity that such changes present could be exploited only if price of the items is not prohibitive when compared to fresh fruit. be RS.00.000. thus. All the departments are well furnished and computerized with video cameras in manufacturing area also. The total investment requirement is estimated at RS. finance. sales. 9. Pineapple. income. proper lighting etc. separate toilets. The service of first aid related to any industrial accidents as well as physical trouble . DISTRIBUTORS- 14 . Apple. 80 is proposed. As income rises and urbanization grows there is a shift towards more expensive but conveniently packed and available foods. price and change in the consumption habits of the population. parking. In that plant. we have provided proper ventilation.85 per 500 millitre in the retail market. Taking this price as a reference. out of which million is required for plant and machinery. drinking water. and the quality is competitive enough with similar imported products. On the back side we have manufacturing unit and the cold storage.80-95 . There are air conditioners & mice system in the conference room. canteen. The plant will create employment opportunities for 37 persons. hr. In front we have reception after reception on the right side we have our office and on the left side we have marketing.The total land area requirement of the plant including provision for open space is 1500 square meter. about 900 m2 is built up area. Mango. The remaining will be an open space for parking and future expansion. fruity juices of various types (Orange. a factory-gate price of RS. The future demand for agro-industrially processed orange and mandarin juice is mainly a function of urbanization. and production departments and conference hall. However.
A suitable distribution system for fruit juice is one. As Hapur side is a village area so our suppliers provide us fresh and good quality raw material at reasonable rates. Mr. distribution of our product-“FRESHEN Juice”-is carried out by Mr. For the supply of raw material we have the following two suppliers 1. MAJOR COMPETITORS OF FRUIT JUICE INDUSTRY IN INDIA 15 . So the supply of raw materials from village area reduces the cost incurred in production. 11. 10. Jaideep Singh in Noida & Ghaziabad. Anoop Mittal and Mr. which relies on wholesaler. We have one permanent supplier and one optional supplier for emergency situation. Noida & Ghaziabad as our target markrt. who in turn would ensure proper distribution through the existing retail channels (supper markets and grocery shops). For Delhi side. We cover Delhi. SUPPLY AND SOURCES FOR RAW MATERIAL The first step in the manufacturing of fruit juice is the supply and the source of raw material. For the reach of the customers. Abhishek Guha. Harendar singh chaudhary (permanent supplier) 2. we have a distributor Mr. Mr. Ajeet Kumar (optional) Our both suppliers our from Hapur side.
Pepsi Foods. Godrej. Ladakh Foods. A jamun variant will soon follow. the two major players like Dabur Foods. Pepsi Foods that has recently launched Tropics. has now also launched an apple-peach combination juice and a mixed fruit variant. NAME OF MAJOR PLAYERS – 16 . But fruit-based soya milk. is experimenting with this market for the second time. Dabur and Pepsi Foods aren’t the only companies that are moving into overdrive in the juice business. makers of the Leh Berry seabuckthorn berry drink. It has also launched a pomegranate juice and a water melon drink. The swift growth in the market is attracting newcomers like Mother Dairy which recently launched the Safal brand of juices. Safal is currently available in orange.In fruit juice industry. Fruit-based milk drinks (market size Rs 20 crore to Rs 25 crore) like N-joi are currently stagnating. Pepsi has started out with a relatively unadventurous mango flavour but it will soon be putting guava and litchi on the shelves. As Indians take bigger swigs than ever before of packaged juices a slew of companies are hoping to grab a share of the action. It’s heading off in untested directions by launching a new range called Coolers which includes traditional recipes like Aam Ka Panna (a green mango drink). grape and an orange-apple combination. Even Godrej Industries Foods Division has introduced fruit juices under the Xs brand (which earlier only consisted of nectars) and a soya milk fruit juice based drink called Sofit this year. another emerging segment reckoned to be worth about Rs 15 crore to Rs 20 crore is expected to grow rapidly. The DABUR company which has turned fruit juices into a Rs 60-crore business has been turning on the taps in recent months. which recently launched the Sofit brand. Parle Agro — of Frooti and N-joi fame — too is rumoured to be on the verge of new launches. mixed fruit. a new range of what are called nectars in the fruit juice business. Godrej Industries’ Foods Division. Mother Dairy and even the small Ladakh Foods are betting big money on this market by flooding it with new fruit beverages.
MOTHER DAIRY FOOD PEPSI FOOD LADAKH FOOD 17 .
the pricing issue plaguing this industry can be better tackled. which is made entirely from mangoes sourced from within India. Significantly India is now an approved source for mango pulp within the Tropicana worldwide system.DABUR FOOD GODAREJ FOOD PEPSI has 14 plants in India and 2 of them work on tetra pack. Which means that if the fruit juice producers work on further development of backward linkages. our intention is to grow the juice market further by providing a great-tasting product to the consumer at the right value. 18 . Pepsi recently launched Tropicana Tropics Mango Nectar. The introduction of Tropics Mango Nectar will be followed by Tropics Litchi and Tropics Guava. and can soon emerge as a major sourcing base for other exotic fruits for Tropicana's international market. For Safal. as against other flavours for which sourcing has to be done from other countries. With the launch of Safal juices. juices are a logical extension of its portfolio. with its expertise in producing and marketing various horticultural products in India as well as overseas. India is now among the top ten markets for Tropicana worldwide.
production costs =1. STATEMENT SHOWING RECIEPTS & PAYMENTS INITIAL INVESTMENTS S. 8. BREAK EVEN POINT ANALYSIS Total Unit produced.11. 4.50.000 Variable costs.000 = Rs.000 83.100 Operating expenses.00.100= Rs.Rs.40.000 Total cost of production= Initial investment + expenses = 35. 1.000 10.000-1.50.00.48.39.00.000 60. 9. 1.000 25.Rs.100 13.39.Rs Fixed cost.Rs. 3.19.000 4. 6.85.48.000 4. Net profit =sales .63.12.000 40. 2.100 + 83. 20.000 11. NO.900 19 .) 10. 35. PARTICULARS Plant and machinery Advertisement Legal charges Preliminary expenses Raw material Other Machineries Case In Hand Furniture Land TOTAL AMOUNT(Rs.19.00.85. 7.4.00. 1.000 4.000 Net sales.63. 5.00.00.
Dividend on 6% Pre.50.) 1.500 each Dividend on 6% equity shares @ Rs.000 2.00.63.000 units @ Rs. Office expenses Transportation Expenses Packaging Expenses 5. Depreciation machines.930 on on 20.000 50.E.51.% = Total fixed expenses / total fixed expenses + operating expenses*100 = 20 .000 TOTAL 1.00.00.100 B. tetra pack (50.00.300 each.P.RECIEPT & PAYMENT STATEMENT Cr.00.550 1.50.00.000 1.000 1.000 units @ Rs.000 Interest on loan @ 6%.39.000 units @ Rs.45 each) 1 lt.000 1.18 each) 500 ml tetra pack (90.620 2.000 AMOUNT(RS. RECIEPT SALESFruit juice – 200 ml tetra pack (3. 90 each) 54.) PAYMENT PURCHASESalary & wages Depreciation Furniture.00.00.000 35.000 Utility expenses (water& electricity) 45.000 Dr.00. AMOUNT(RS.00. 40.50. Shares @ Rs.
another emerging segment reckoned to be worth about Rs 15 crore to Rs 20 crore is expected to grow rapidly. is experimenting with this market for the second time. 21 . With the market growing at a healthy rate and with changing lifestyles and rising levels of health consciousness among consumers today. Convenience is no longer the selling point. The proliferation of supermarkets and malls in metros and mini-metros (key markets for this category). Fruit-based milk drinks (market size Rs 20crore to Rs 25crore) like N-joi are currently stagnating. Industrial analysis— This industry has some factors to grow • • • • Consumption of juices which has gone up from 30 percent three years back to almost 80 percent today. the demand for healthier products like packaged fruit juice is only going to increase in the times to come. the naturalness is. Even when the fruit juice/nectar market is projected to grow at a scorching pace of 40 percent.14. added to the growth story as well. non-sugar variants find flavour with fitness freaks.. which recently launched the Sofit brand. a Tetra Pack study has found that a whopping 86 percent of the fruit juice market is still lying untapped. WHY AM I NTERESTED IN BUSINESS What also made the market work is the fact that tetrapacks offered a solution to provide fruit juice practically fresh and preservative free. its soya milk brand “Great Shakes” failed miserably because of its taste. has grown at a 20 per cent to 25 per cent rate. Ten years back. Consumers perceive this as the next best thing to having a fresh fruit. The fruit juice category is rapidly growing by over 50 percent because it's seen as healthy compared to soft drinks. And then there is the income factor. nectar is 10 per cent and fruit drinks are 60 per cent of the market today. some segments are doing better than others. Also. Obviously. Godrej. They are more hygienic than roadside fruit juices and are a big hit with yuppies. The fruit drink market in which juice accounts for 30 per cent. But fruit-based soya milk.
Tropicana & Real holding 40% market shares each. And that is the main reason to be interested in the fruit juice processing & supply.100 crore packaged fruit juice market is estimated to be growing at 20% to 25% annually. a mango drink. In this industry. was introduced in the tetra packs in 1985 & since then it has been a leader in its segments. The above example explains clearly that this industry has been boomed in last decades. Parle Agro’s Frooti.80% Juices –with pulp content more than 80%. All of this has resulted in increased in-home consumption of juices which has gone up from 30 per cent three years back to almost 80 per cent today. investment in this industry is not at all a wrong decision. Nectars – juice with pulp content between 40.Rs. 22 . The market has suddenly picked up since 1994-95 . The market can be categorized in terms of product content & there are three major product content available- • • • Drinks –juice with pulp content less than 40%. so.
Value added tax. preserve and package fruits and vegetables. Customs & Excise duty there are various other Indirect Taxes applicable to business organizations in India like Service tax.15. 20% to 10% on refrigerated vans. Customs duty on packaging machines reduced from 15 percent to 5 percent.e. Agricultural growth has been given high priority which turn has opened up new thrust food processing industry. allowed a deduction of 100% of profit for five year and 25% of profits for the next five years in case of new agro-processing industries set up to process. Central Sales tax. And the excise duty exemption on refrigeration equipment will enhance investments in the cold chain sector and help food and beverage sector. Wealth tax & Income Tax are the two taxes in India which come under the heading of Direct taxes. Custom Duty Relief• • Custom duty reduced from 7. TAX APPLICATION Various Corporate laws of India like Companies Act. etc. Apart from the most common indirect tax i. govern the working of business organizations in India .5% to 5% on food processing machinery. Income Tax ReliefUnder Income Tax Act. Partnership Act. 23 .
There are a number of food laws being implemented by various Ministries/Departments. nonmolasses based alcoholic drinks. is a very important step before establish the business. BIS is the largest body for formulating standards for various food items. • • Essential Commodities Act: A number of quality control orders have been issued under Essential Commodities Act such as FPO. • Food processing industries were included in the list of priority sector for bank lending in 1999. poultry.1951. grains. Meat Product Order and Vegetable Oils Control Order. hydrogenated animal fats & oils etc. Laws are being operated by Bureau of Indian Standards (BIS). The Ministry covers the products of fruits and vegetables. fishery. Agriculture Produce (Grading & Marking) Act which lays down the specifications for various agricultural commodities including some processed foods. Ministry acts as a catalyst for bringing in greater investments into this sector. 1955 lays down specifications for various food products for the food safety. 24 . • • Prevention of Food Adulteration Act. LEGAL ASPECTS No industrial license is required for almost all of the food & agro processing industries under the Industries (Development & Regulation) Act. MMPO. dairy.All services provided by Technology Business Incubators exempted from service tax. cane sugar. Similarly their Incubatees whose annual business turnover does not exceed 50 lakhs exempted from service tax for the first three years. aerated water and soft drink. meat. potable alcohol & wines. 16. consumer food. The Ministry of Food Processing Industries is the main central agency responsible for promoting and regulating processing sector. With proper documentation & legal procedures registration is done by registrar. To be more specific following are orders for the food safety and quality. These orders primarily meant for regulating the hygienic conditions. Registration of co. and items reserved for exclusive manufacture in the small scale industry. except for some items like: beer.
CONCLUSION The new wave in the food industry is not only about foreign companies arriving here attracted by the prospective size of the market. but also about the migration of the ‘Made in India’ tag traveling abroad. It can be concluded that the food processing industry in India is a major driver of economic growth with multiple investment opportunities. 1973 Milk and Milk Products Order. 1992 17. 25 .• • • Fruit Products Order -1955 Meat Food Products Order.
The overall study of this business plan has made us able to understand the whole process & fund allocation of fruit juice industry .51. 3. the business of fruit juice processing is very rapid in growth of its consumption rate.79. of units produced are 4.000 in the starting year.71.The total no. It is a product used by everyone.35. Lastly.000.1.61.13.1. 26 .In this Business Plan. The estimated growth rate is 6% per annum in this industry. we estimated total investment of Rs.50.000 and got a profit of Rs. So the target customers are easily using it.000. it shows a net profit of Rs.
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