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55906068-Fruit-Juice

55906068-Fruit-Juice

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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

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INDEX
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

1. PREAMBLE

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At present the food processing sector employs about 13 million people directly and about 35 million people indirectly. packaging which enhance shelf life of food products. with a number of fiscal relief and incentives. India's food processing sector covers a wide range of products fruit and vegetables. export and growth prospects. very popular among the age group of 14 – 30 & above. for minimizing pre/post harvest wastage.leading to rapid growth and new opportunities in food and beverages sector. In this series we are moving for fruit juice processing. 200 million more consumers expected to shift to processed food by 2010. Soya-based products. high protein foods etc. The Food Processing Industry sector in India is one of the largest in terms of production. mineral water. Well developed infrastructure and distribution network. packaging and marketing. 50 per cent of household expenditure by Indians is on food items. India has diverse agro-climatic conditions and has a large and diverse raw material base suitable for food processing companies.FOOD PROCESSING Food processing involves any type of value addition to agricultural or horticultural produce and also includes processes such as grading. The food processing industry provides vital linkages and synergies between industry and agriculture. children & teenagers in form of in-home & out-home consumption. meat and poultry. fisheries. generating employment and export growth. Advantage in India• • • • • • • • India is one of the largest food producers in the world. increased number of women in workforce. our objectives are- 3 . which is now a days. India is looking for investment in infrastructure. to encourage commercialization and value addition to agricultural produce. India has huge scientific and research talent pool . consumption. Our target customers are women in homes. changing life style. chocolates and cocoa products. India produces annually 90 million tonnes of milk (highest in the world) & 150 million tonnes of fruits & vegetables (second largest). grain processing and other consumer product groups like confectionery. plantation. Rapid urbanisation. rising per capita income. sorting. OBJECTIVEAs a great opportunity in this industry. alcoholic beverages. increased literacy. The government has accorded it a high priority. milk and milk products.

flavours and preservatives. We all know very well that the present era of business is full of cut throat competition. 2.• • • • • Our intension is to grow the juice market by providing a new & great testing product to consumers at right value. 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. With the market growing at a healthy rate and with changing life styles and with rising levels of health consciousness among consumers today. 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. 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. So. PURPOSE OF STUDY 4 . the demand for healthy products is increased. we are targeting to establish our company at the top as a pure & fresh juice provider company. These fruit juices are free from any type of colours . So our vision is to cultivate a more personal & longer term relationship with customers. We aim to capture maximum target costumers by providing them a healthy and nutritive product. Our mission is to provide natural nutrients to the customers. We have an objective to serve our consumers with a tasty & healthy fruit product .

pure & healthy juice with different flavours. THE BUSINESS 5 . fresh fruit from our raw material suppliers. 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. The tetra packing adds freshness & nutrient value to our product. 3. needs & requirements of raw materials and proper distribution & promotion of products. In this we are aiming to manufacture fresh. we would come to know all the processes of manufacturing fruit juice. We came to know about the legal aspect of the company. 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.Our business proposal is to set up a plant of fruit juice processing & supply. We put that fruits in process by using required equipments. 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. organize. we start packaging of juice in tetra packs. which would be full of nutrients without any chemical preservatives. After converting raw material into finished goods through various techniques. By starting a business in fruit juice industry. We start processing of fruits by receiving the raw materials ie. direct and control the things. staff.

55% of respondents consume 1 liter packs at home and 45% of that use 200 ml pack.diverse with regards to income. per capita consumption of fruit juice is at a fraction of liter ie. 6 . Fulfill the customer’s need of Good Taste with Health..followed by apple. Awareness of trial level of packaged juice is higher in Delhi in comparison to Mumbai.which are being bottled & sold in large quantity through out the country. apple & pineapple flavor in 200 ml. 500 ml. Easy to carry & use in traveling.250 mn liter . Easy to have on the breakfast table. Thirst quenching. 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. We drink water in our meals. 200 ml. & S. A marketing research .& 1 lt. GROUP LTD. explains that— • • • • Most preferred flavour is orange . whereas. India is a market of diversity.) India is a tropical country & has accorded a favorable reception to thirst quenchers such as fruit juice & aerated soft drinks. In India.(S. The nutritive value of real fruit beverage is far greater than that of synthetic products . but in west. not a necessity in our society. the consumption of fruit juice intake home pack is estimated at 17. Our FRESHEN fruit juices are full of benefits with the characterstics as     Nutritive contents. sweet orange & mixed fruit juice in India. Juice is to a great extent considered as a luxury. tetrapacks. Our product “FRESHEN Juice” have orange.. culture & preferences and marketer has to use these diverse characteristics of market. one starts the day with breakfast & a glass of juice.carried out across 1200 adults in Mumbai & Delhi. price point of product. Drinking juice is not a part of our culture. Findings indicate the most packaged juice drinking customers travel abroad on holidays.

Rs. 54. CAPITAL INVESTMENT.Rs. promotion. distribution & products.35.17.  Regional taste preferences. red lights & other crowded areas.Rs. So VIJAI NAGER town of Ghaziabad is proposed to be the location for the envisaged plant. To spend 15% of sales on promotional activities. 4. To create customer’s awareness regarding products. 54.P.500 on bank loan @ 6% per annum. ADDRESS“S & S GROUP LTD.000 Owned Capital. we have our plant & machinery with official operation departments.08.) . 7 . To develop customer base and building customer loyalty.500 Borrowed capital.17. we are targeting to command 30% shares in next 5 years. Here.” NH-24 Near Vijay Nagar bypass GHAZIABAD (U.  Distribution strategies & reach in market. 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. meter.  Flexible & effective marketing mix including price. Future plans    To compete with existing companies in fruit juice industry. which indicates the future growth of “FRESHEN” fruit juice Better technologies used in processing & packaging.KEY SUCCESS FACTORS – The main key strengths of our company. The area required is 1500 sq. are as follows.  Promotion of products by using hoarding at bus stops.1.  Sourcing of raw materials.

5. 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. MACHINERY REQUIREMENTS 8 .

mangos. This machine is used to extract juice & pulp from fruits like Mango.1 9 .1 • • • • • • Vapour outlet Charging hole BSP boss for pressure/vacuum gauge Necessary fittings for steam inlet Light & sight whole.2 • Suitable for washing apples. Pineapple. scrapers along with the sieves. The Machine can be used as Finisher by changing the sieves Capacity -100 Kg. The Pulper (Juice Extractor).Rotary Fruit & Vegetable Washer. vacuum pump. providing with glass Complete with condenser.1 • • • . Capacity -200kg-500kg /batch input. to 4000kg / Hr. moisture trape. pears & other vegetables. Capacity -1MT-2MT/hour Vacuum Evaporator. The Machine is driven by Electric Motor consisting of rotary blades. Tomato. Papaya & Vegetables. Pasteurizer. Passion Fruit.

• . The collected fruit is sent to packing centers where it is boxed for sale as whole fruit. Cold Storage The Manufacturing ProcessHarvesting/collection • When the mature fruit is ready to pick. or sent to plants for juice processing. The oranges are generally shipped via truck to juice extraction facilities. 10 . Installation.1 • For controlling ascorbic acid to prevent the reactions in fruit juice. a crew of pickers is sent in to pull the fruit off the trees. available in different type and capacity Fruit juice Processing Plant- • Design. • Fruit Juice Processing Plant • Fruit Juice Packing Plant Juice cooler. Milk Processing. Suitable for Fruit Processing. Testing & Commission of Fruit Juice Processing plant . Engineering. where they are unloaded by a gravity feed onto a conveyor belt that transports the fruit to a storage bin. Filler & Sealer machine• For filling juice in tetra packs & then sealing that pack finally. Supply.

Diluted with water. Extraction • Proper juice extraction is important to optimize the efficiency of the juice production process as well as the quality of the finished drink. 11 . The pulp is separated from the juice by ultra-filtration and pasteurized. Juice concentrate is then stored in refrigerated stainless steel bulk tanks until is ready to be packaged or reconstituted. There are two automated extraction methods commonly used by the industry. At this point. 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.Cleaning/Grading • The fruit must be inspected and graded before it can be used. An inspector takes a 18 kg sample to analyze in order to make sure the fruit meets maturity requirements for processing.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. • The extracted juice is filtered through a stainless steel screen before it is ready for the next stage. the juice can be chilled or concentrated if it is intended for a reconstituted beverage. or TASTE for short. Graders remove bad fruit as it passes over the rollers and the remaining quality pieces are automatically segregated by size prior to extraction. Proper size is critical for the extraction process. The second type of extraction . This process removes debris and dirt and reduces the number of microbes. 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. Concentration is useful because it extends the shelf life of the juice and makes storage and shipping more economical. The certified fruit is then transported along a conveyor belt where it is washed with a detergent as it passes over roller brushes. The fruit is rinsed and dried. TASTE uses steam to heat the juice under vacuum and force water to be evaporated. The rotating reamers express the juice as the orange halves travel around the conveyor line. 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. and eject a peel in about 3 seconds. Concentration • Concentrated juice extract is approximately five times more concentrated than squeezed juice. ream.

the containers are cooled as fast as possible. Where possible. so the juice is heated without direct contact with the heating surface.HOW 12 . the pasteurized juice should be filled while still hot. Orange juice packaged in this manner has a shelf life of 6-8 months at room temperature. Pasteurization • Pasteurization is still required to further retard spoilage. Proper blending of juice concentrate and other flavor fractions is necessary to ensure the final juice product achieves a high quality flavor.2° F (85-94° C) for about 30 seconds is adequate to reduce the microbe count and prepare the juice for filling. One common method passes juice through a tube next to a plate heat exchanger. Packaging/filling • To ensure sterility. reaching a temperature of 185-201. This step must be carefully controlled because during the concentration process much of the juice's flavor may be lost. 7. The preheated juice is further heated with steam or hot water to the pasteurization temperature.Reconstitution • When the juice processor is ready to prepare a commercial package for retail sale. Several pasteurization methods are commercially used. After filling. Another method uses hot. Pasteurization also inactivates certain enzymes which cause the pulp to separate from the juice. color. and depending on the design of the package. it may immediately invert to sterilize the lid. The filling head meters the precise amount of product into the container. pasteurized juice to preheat incoming unpasteurized juice. metal or glass bottles and cans can be preheated. resulting in an aesthetically undesirably beverage. TECHNICAL KNOW. Typically. and flavor. concentrate is pulled from several storage batches and blended with water to achieve the desired sugar to acid ratio.

computer assists us To maintain the records & database of business.  To take orders. Fax MachinesIt is required to send & receive the documents quickly. recipies. which are very essential. EquipmentsThe whole manufacturing process of converting raw materials into finished goods. technologies are being used everywhere. It helps to communicate any message in a very short time period.Now a days technology plays a major role in business. juice cooler. From starting up a company to taking feedbacks in last. health tips & for many types of contest also. Telephones – For providing a proper communication channel in organization telephone facilities are there. In fruit juice industry. PLANT LAYOUT 13 . is based on machineries like juice extractor. suggestions. fruits & vegetable washer.  To take feedback from customers side by internet. It is time saving machine for collecting any type of written data.  To use internet facilities. the technology. 8. filler & sealer machines etc. Fruit juice processor plant. vacuum evaporator. are- ComputersIn organizations.

The present demand for the proposed product is estimated at 144 tonnes per annum. be RS. The remaining will be an open space for parking and future expansion. about 900 m2 is built up area. a factory-gate price of RS.000. and the quality is competitive enough with similar imported products. In that plant. and production departments and conference hall.00. 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. On the back side we have manufacturing unit and the cold storage. sales. separate toilets. proper lighting etc.85 per 500 millitre in the retail market. 9. DISTRIBUTORS- 14 . Currently.80-95 . income. fruity juices of various types (Orange. price and change in the consumption habits of the population. etc) sell for a price ranging from RS.1. The service of first aid related to any industrial accidents as well as physical trouble . Pineapple. There are air conditioners & mice system in the conference room. Taking this price as a reference. Apple. parking. The future demand for agro-industrially processed orange and mandarin juice is mainly a function of urbanization. and allowing margin for wholesalers and retailers. Mango. However. All the departments are well furnished and computerized with video cameras in manufacturing area also. The total investment requirement is estimated at RS. Demand for fruit juice is forecasted to grow at the rate of 6% per annum . As income rises and urbanization grows there is a shift towards more expensive but conveniently packed and available foods.The total land area requirement of the plant including provision for open space is 1500 square meter. Of this. The plant will create employment opportunities for 37 persons. the opportunity that such changes present could be exploited only if price of the items is not prohibitive when compared to fresh fruit. canteen. The average price would. drinking water. In front we have reception after reception on the right side we have our office and on the left side we have marketing. hr. 80 is proposed.10. thus. out of which million is required for plant and machinery. finance. we have provided proper ventilation.

distribution of our product-“FRESHEN Juice”-is carried out by Mr. We cover Delhi. Mr.A suitable distribution system for fruit juice is one. For Delhi side. Harendar singh chaudhary (permanent supplier) 2. we have a distributor Mr. As Hapur side is a village area so our suppliers provide us fresh and good quality raw material at reasonable rates. which relies on wholesaler. 11. Mr. 10. Jaideep Singh in Noida & Ghaziabad. MAJOR COMPETITORS OF FRUIT JUICE INDUSTRY IN INDIA 15 . Abhishek Guha. Anoop Mittal and Mr. For the reach of the customers. For the supply of raw material we have the following two suppliers 1. Noida & Ghaziabad as our target markrt. who in turn would ensure proper distribution through the existing retail channels (supper markets and grocery shops). We have one permanent supplier and one optional supplier for emergency situation. So the supply of raw materials from village area reduces the cost incurred in production. Ajeet Kumar (optional) Our both suppliers our from Hapur side. SUPPLY AND SOURCES FOR RAW MATERIAL The first step in the manufacturing of fruit juice is the supply and the source of raw material.

Dabur and Pepsi Foods aren’t the only companies that are moving into overdrive in the juice business. a new range of what are called nectars in the fruit juice business. Pepsi has started out with a relatively unadventurous mango flavour but it will soon be putting guava and litchi on the shelves. But fruit-based soya milk. The DABUR company which has turned fruit juices into a Rs 60-crore business has been turning on the taps in recent months. A jamun variant will soon follow. Pepsi Foods. The swift growth in the market is attracting newcomers like Mother Dairy which recently launched the Safal brand of juices. is experimenting with this market for the second time. makers of the Leh Berry seabuckthorn berry drink. Parle Agro — of Frooti and N-joi fame — too is rumoured to be on the verge of new launches. Godrej. As Indians take bigger swigs than ever before of packaged juices a slew of companies are hoping to grab a share of the action. the two major players like Dabur Foods.In fruit juice industry. Fruit-based milk drinks (market size Rs 20 crore to Rs 25 crore) like N-joi are currently stagnating. Mother Dairy and even the small Ladakh Foods are betting big money on this market by flooding it with new fruit beverages. 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). has now also launched an apple-peach combination juice and a mixed fruit variant. mixed fruit. Safal is currently available in orange. It has also launched a pomegranate juice and a water melon drink. 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. grape and an orange-apple combination. which recently launched the Sofit brand. another emerging segment reckoned to be worth about Rs 15 crore to Rs 20 crore is expected to grow rapidly. Pepsi Foods that has recently launched Tropics. NAME OF MAJOR PLAYERS – 16 . Godrej Industries’ Foods Division. Ladakh Foods.

MOTHER DAIRY FOOD PEPSI FOOD LADAKH FOOD 17 .

India is now among the top ten markets for Tropicana worldwide. For Safal. the pricing issue plaguing this industry can be better tackled. our intention is to grow the juice market further by providing a great-tasting product to the consumer at the right value. Pepsi recently launched Tropicana Tropics Mango Nectar. Which means that if the fruit juice producers work on further development of backward linkages. 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. and can soon emerge as a major sourcing base for other exotic fruits for Tropicana's international market. as against other flavours for which sourcing has to be done from other countries. 18 . With the launch of Safal juices. which is made entirely from mangoes sourced from within India. juices are a logical extension of its portfolio. The introduction of Tropics Mango Nectar will be followed by Tropics Litchi and Tropics Guava. with its expertise in producing and marketing various horticultural products in India as well as overseas.

1.00.) 10. NO. 1.production costs =1.85.100= Rs. 20.19.000 Total cost of production= Initial investment + expenses = 35.63.19. 9.100 Operating expenses. 35.40.Rs.000 40.00.Rs.48.000 4. 2.100 13.000 60. 6.50. 5.Rs.000 Net sales.39.000 = Rs. 3.000 10.100 + 83.00. STATEMENT SHOWING RECIEPTS & PAYMENTS INITIAL INVESTMENTS S.00.39.11. 1.Rs Fixed cost. BREAK EVEN POINT ANALYSIS Total Unit produced.000 83.000-1.00.00.85. 4. 8.63.000 Variable costs. Net profit =sales .48. 7.00. PARTICULARS Plant and machinery Advertisement Legal charges Preliminary expenses Raw material Other Machineries Case In Hand Furniture Land TOTAL AMOUNT(Rs.4.900 19 .50.000 4.000 4.000 25.12.000 11.

Shares @ Rs.50.50.50.550 1.930 on on 20.45 each) 1 lt. RECIEPT SALESFruit juice – 200 ml tetra pack (3.) PAYMENT PURCHASESalary & wages Depreciation Furniture.) 1.000 50.00.00.51. tetra pack (50. Depreciation machines.000 Interest on loan @ 6%.000 units @ Rs.00.RECIEPT & PAYMENT STATEMENT Cr.000 Utility expenses (water& electricity) 45.00.000 Dr.000 1.00.63.00. 90 each) 54.000 TOTAL 1.300 each.000 units @ Rs. AMOUNT(RS. Dividend on 6% Pre.000 AMOUNT(RS.% = Total fixed expenses / total fixed expenses + operating expenses*100 = 20 .00.00.000 1.000 2.E. 40.000 1.P. Office expenses Transportation Expenses Packaging Expenses 5.18 each) 500 ml tetra pack (90.00.00.500 each Dividend on 6% equity shares @ Rs.620 2.100 B.000 units @ Rs.39.000 35.

They are more hygienic than roadside fruit juices and are a big hit with yuppies. But fruit-based soya milk. The proliferation of supermarkets and malls in metros and mini-metros (key markets for this category). Even when the fruit juice/nectar market is projected to grow at a scorching pace of 40 percent. Consumers perceive this as the next best thing to having a fresh fruit.. the naturalness is. Also. And then there is the income factor. Convenience is no longer the selling point. non-sugar variants find flavour with fitness freaks. 21 . Godrej. a Tetra Pack study has found that a whopping 86 percent of the fruit juice market is still lying untapped. which recently launched the Sofit brand. its soya milk brand “Great Shakes” failed miserably because of its taste. added to the growth story as well. Obviously. Ten years back. 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.14. The fruit drink market in which juice accounts for 30 per cent. 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 fruit juice category is rapidly growing by over 50 percent because it's seen as healthy compared to soft drinks. some segments are doing better than others. another emerging segment reckoned to be worth about Rs 15 crore to Rs 20 crore is expected to grow rapidly. nectar is 10 per cent and fruit drinks are 60 per cent of the market today. the demand for healthier products like packaged fruit juice is only going to increase in the times to come. is experimenting with this market for the second time. has grown at a 20 per cent to 25 per cent rate. With the market growing at a healthy rate and with changing lifestyles and rising levels of health consciousness among consumers today.

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.Rs. The above example explains clearly that this industry has been boomed in last decades.80% Juices –with pulp content more than 80%. Tropicana & Real holding 40% market shares each. 22 . And that is the main reason to be interested in the fruit juice processing & supply. so. Parle Agro’s Frooti. was introduced in the tetra packs in 1985 & since then it has been a leader in its segments. In this industry. investment in this industry is not at all a wrong decision. The market has suddenly picked up since 1994-95 . a mango drink. 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%. Nectars – juice with pulp content between 40.100 crore packaged fruit juice market is estimated to be growing at 20% to 25% annually.

Value added tax. Custom Duty Relief• • Custom duty reduced from 7.5% to 5% on food processing machinery. Central Sales tax. 23 . Wealth tax & Income Tax are the two taxes in India which come under the heading of Direct taxes. preserve and package fruits and vegetables. Income Tax ReliefUnder Income Tax Act. TAX APPLICATION Various Corporate laws of India like Companies Act. Apart from the most common indirect tax i. And the excise duty exemption on refrigeration equipment will enhance investments in the cold chain sector and help food and beverage sector. Customs & Excise duty there are various other Indirect Taxes applicable to business organizations in India like Service tax.15. Agricultural growth has been given high priority which turn has opened up new thrust food processing industry. Customs duty on packaging machines reduced from 15 percent to 5 percent. 20% to 10% on refrigerated vans. 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. etc.e. Partnership Act. govern the working of business organizations in India .

16. potable alcohol & wines. aerated water and soft drink.1951.All services provided by Technology Business Incubators exempted from service tax. There are a number of food laws being implemented by various Ministries/Departments. nonmolasses based alcoholic drinks. Agriculture Produce (Grading & Marking) Act which lays down the specifications for various agricultural commodities including some processed foods. except for some items like: beer. fishery. cane sugar. and items reserved for exclusive manufacture in the small scale industry. • • Essential Commodities Act: A number of quality control orders have been issued under Essential Commodities Act such as FPO. 24 . is a very important step before establish the business. The Ministry of Food Processing Industries is the main central agency responsible for promoting and regulating processing sector. grains. hydrogenated animal fats & oils etc. Registration of co. dairy. • • Prevention of Food Adulteration Act. With proper documentation & legal procedures registration is done by registrar. LEGAL ASPECTS No industrial license is required for almost all of the food & agro processing industries under the Industries (Development & Regulation) Act. Ministry acts as a catalyst for bringing in greater investments into this sector. The Ministry covers the products of fruits and vegetables. BIS is the largest body for formulating standards for various food items. Laws are being operated by Bureau of Indian Standards (BIS). • Food processing industries were included in the list of priority sector for bank lending in 1999. poultry. Meat Product Order and Vegetable Oils Control Order. MMPO. Similarly their Incubatees whose annual business turnover does not exceed 50 lakhs exempted from service tax for the first three years. meat. To be more specific following are orders for the food safety and quality. These orders primarily meant for regulating the hygienic conditions. 1955 lays down specifications for various food products for the food safety. consumer food.

1973 Milk and Milk Products Order. It can be concluded that the food processing industry in India is a major driver of economic growth with multiple investment opportunities. CONCLUSION The new wave in the food industry is not only about foreign companies arriving here attracted by the prospective size of the market.• • • Fruit Products Order -1955 Meat Food Products Order. 1992 17. but also about the migration of the ‘Made in India’ tag traveling abroad. 25 .

71. 26 .51. of units produced are 4. It is a product used by everyone.The total no.000.000 and got a profit of Rs. we estimated total investment of Rs.79.1. So the target customers are easily using it.1. it shows a net profit of Rs. The estimated growth rate is 6% per annum in this industry. Lastly. 3.000. the business of fruit juice processing is very rapid in growth of its consumption rate.13.35.In this Business Plan.50.000 in the starting year.61. The overall study of this business plan has made us able to understand the whole process & fund allocation of fruit juice industry .

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