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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
50 per cent of household expenditure by Indians is on food items. India is looking for investment in infrastructure. increased literacy. India has huge scientific and research talent pool . consumption. India's food processing sector covers a wide range of products fruit and vegetables. children & teenagers in form of in-home & out-home consumption. very popular among the age group of 14 – 30 & above. export and growth prospects. with a number of fiscal relief and incentives. fisheries. milk and milk products. plantation. sorting. Rapid urbanisation. meat and poultry. chocolates and cocoa products.leading to rapid growth and new opportunities in food and beverages sector. grain processing and other consumer product groups like confectionery. to encourage commercialization and value addition to agricultural produce. The food processing industry provides vital linkages and synergies between industry and agriculture. OBJECTIVEAs a great opportunity in this industry. our objectives are- 3 . which is now a days. packaging which enhance shelf life of food products. 200 million more consumers expected to shift to processed food by 2010. Soya-based products. Our target customers are women in homes. Well developed infrastructure and distribution network. At present the food processing sector employs about 13 million people directly and about 35 million people indirectly. The government has accorded it a high priority. India produces annually 90 million tonnes of milk (highest in the world) & 150 million tonnes of fruits & vegetables (second largest). alcoholic beverages. rising per capita income. mineral water. Advantage in India• • • • • • • • India is one of the largest food producers in the world. increased number of women in workforce. India has diverse agro-climatic conditions and has a large and diverse raw material base suitable for food processing companies. In this series we are moving for fruit juice processing.FOOD PROCESSING Food processing involves any type of value addition to agricultural or horticultural produce and also includes processes such as grading. high protein foods etc. generating employment and export growth. The Food Processing Industry sector in India is one of the largest in terms of production. for minimizing pre/post harvest wastage. changing life style. packaging and marketing.
• • • • • Our intension is to grow the juice market by providing a new & great testing product to consumers at right value. we are targeting to establish our company at the top as a pure & fresh juice provider company. So. We all know very well that the present era of business is full of cut throat competition. We are aiming at customers with more exotic tastes with some mix flavour of fruits. So our vision is to cultivate a more personal & longer term relationship with customers. flavours and preservatives. We have an objective to serve our consumers with a tasty & healthy fruit product . which would also be full of nutrients without any preservatives. With the market growing at a healthy rate and with changing life styles and with rising levels of health consciousness among consumers today. We aim to capture maximum target costumers by providing them a healthy and nutritive product. By taking advantage of health consciousness pervading the market we will introduce our product to increase our target customers. 2. 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. the demand for healthy products is increased. Our juice is 100% juice with no water added and free from any type of colours and flavours. PURPOSE OF STUDY 4 . Our mission is to provide natural nutrients to the customers. These fruit juices are free from any type of colours .
The tetra packing adds freshness & nutrient value to our product. 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. We came to know about the legal aspect of the company. which would be full of nutrients without any chemical preservatives. We put that fruits in process by using required equipments. we start packaging of juice in tetra packs. In this we are aiming to manufacture fresh. organize. It is helpful to increase our decision making power. 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.Our business proposal is to set up a plant of fruit juice processing & supply. staff. needs & requirements of raw materials and proper distribution & promotion of products. 3. By starting a business in fruit juice industry. fresh fruit from our raw material suppliers. After converting raw material into finished goods through various techniques. we would come to know all the processes of manufacturing fruit juice. pure & healthy juice with different flavours. We start processing of fruits by receiving the raw materials ie. direct and control the things. 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. THE BUSINESS 5 .
one starts the day with breakfast & a glass of juice. per capita consumption of fruit juice is at a fraction of liter ie. Fulfill the customer’s need of Good Taste with Health. the consumption of fruit juice intake home pack is estimated at 17.carried out across 1200 adults in Mumbai & Delhi. Thirst quenching. not a necessity in our society. Our product “FRESHEN Juice” have orange.) India is a tropical country & has accorded a favorable reception to thirst quenchers such as fruit juice & aerated soft drinks. India is a market of diversity. We drink water in our meals. price point of product. 55% of respondents consume 1 liter packs at home and 45% of that use 200 ml pack. culture & preferences and marketer has to use these diverse characteristics of market. Our FRESHEN fruit juices are full of benefits with the characterstics as Nutritive contents.(S. whereas. explains that— • • • • Most preferred flavour is orange . A marketing research . Findings indicate the most packaged juice drinking customers travel abroad on holidays. In India. 200 ml.. sweet orange & mixed fruit juice in India. Easy to have on the breakfast table. 500 ml. The nutritive value of real fruit beverage is far greater than that of synthetic products .which are being bottled & sold in large quantity through out the country. Juice is to a great extent considered as a luxury. 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. Easy to carry & use in traveling.diverse with regards to income. apple & pineapple flavor in 200 ml. but in west. Awareness of trial level of packaged juice is higher in Delhi in comparison to Mumbai. & S.& 1 lt.followed by apple.250 mn liter .. 6 . GROUP LTD. Drinking juice is not a part of our culture. tetrapacks.
ADDRESS“S & S GROUP LTD. promotion. 54.KEY SUCCESS FACTORS – The main key strengths of our company.) .Rs. distribution & products. To create customer’s awareness regarding products. CAPITAL INVESTMENT.17. To develop customer base and building customer loyalty. Distribution strategies & reach in market. To spend 15% of sales on promotional activities. So VIJAI NAGER town of Ghaziabad is proposed to be the location for the envisaged plant. 4. Regional taste preferences. 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. are as follows.P.1. Flexible & effective marketing mix including price.500 Borrowed capital.” NH-24 Near Vijay Nagar bypass GHAZIABAD (U. meter.Rs. Future plans To compete with existing companies in fruit juice industry.500 on bank loan @ 6% per annum. Here.08. we are targeting to command 30% shares in next 5 years. The area required is 1500 sq. red lights & other crowded areas.17. 7 . we have our plant & machinery with official operation departments.000 Owned Capital.35. Sourcing of raw materials.Rs. Promotion of products by using hoarding at bus stops. which indicates the future growth of “FRESHEN” fruit juice Better technologies used in processing & packaging. 54.
MACHINERY REQUIREMENTS 8 . 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.
This machine is used to extract juice & pulp from fruits like Mango. The Pulper (Juice Extractor). Pineapple. providing with glass Complete with condenser. to 4000kg / Hr. Tomato. mangos. pears & other vegetables. The Machine is driven by Electric Motor consisting of rotary blades. Capacity -1MT-2MT/hour Vacuum Evaporator.1 • • • . Passion Fruit. moisture trape. scrapers along with the sieves.2 • Suitable for washing apples.1 • • • • • • Vapour outlet Charging hole BSP boss for pressure/vacuum gauge Necessary fittings for steam inlet Light & sight whole.Rotary Fruit & Vegetable Washer. vacuum pump.1 9 . Pasteurizer. The Machine can be used as Finisher by changing the sieves Capacity -100 Kg. Capacity -200kg-500kg /batch input. Papaya & Vegetables.
Milk Processing. Suitable for Fruit Processing. Testing & Commission of Fruit Juice Processing plant . or sent to plants for juice processing. available in different type and capacity Fruit juice Processing Plant- • Design. The collected fruit is sent to packing centers where it is boxed for sale as whole fruit. The oranges are generally shipped via truck to juice extraction facilities. where they are unloaded by a gravity feed onto a conveyor belt that transports the fruit to a storage bin.1 • For controlling ascorbic acid to prevent the reactions in fruit juice. Filler & Sealer machine• For filling juice in tetra packs & then sealing that pack finally. 10 .• . Cold Storage The Manufacturing ProcessHarvesting/collection • When the mature fruit is ready to pick. Installation. a crew of pickers is sent in to pull the fruit off the trees. • Fruit Juice Processing Plant • Fruit Juice Packing Plant Juice cooler. Engineering. Supply.
An inspector takes a 18 kg sample to analyze in order to make sure the fruit meets maturity requirements for processing. TASTE uses steam to heat the juice under vacuum and force water to be evaporated. the juice can be chilled or concentrated if it is intended for a reconstituted beverage. There are two automated extraction methods commonly used by the industry. Concentration is useful because it extends the shelf life of the juice and makes storage and shipping more economical. Diluted with water. Concentration • Concentrated juice extract is approximately five times more concentrated than squeezed juice. Juice is commonly concentrated with a piece of equipment known as a Thermally Accelerated Short-Time Evaporator. The fruit is rinsed and dried.Cleaning/Grading • The fruit must be inspected and graded before it can be used. The second type of extraction . or TASTE for short. The certified fruit is then transported along a conveyor belt where it is washed with a detergent as it passes over roller brushes. ream.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 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. Graders remove bad fruit as it passes over the rollers and the remaining quality pieces are automatically segregated by size prior to extraction. Juice concentrate is then stored in refrigerated stainless steel bulk tanks until is ready to be packaged or reconstituted. The first places the fruit between two metal cups with sharpened metal tubes at their base. 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. The pulp is separated from the juice by ultra-filtration and pasteurized. 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 extracted juice is filtered through a stainless steel screen before it is ready for the next stage. Modern extraction equipment of this type can slice. This process removes debris and dirt and reduces the number of microbes. At this point. 11 . Proper size is critical for the extraction process. and eject a peel in about 3 seconds.
7. One common method passes juice through a tube next to a plate heat exchanger. This step must be carefully controlled because during the concentration process much of the juice's flavor may be lost. Where possible. concentrate is pulled from several storage batches and blended with water to achieve the desired sugar to acid ratio.HOW 12 . TECHNICAL KNOW. After filling. the containers are cooled as fast as possible. it may immediately invert to sterilize the lid. The filling head meters the precise amount of product into the container. Typically. the pasteurized juice should be filled while still hot. Pasteurization • Pasteurization is still required to further retard spoilage. reaching a temperature of 185-201. metal or glass bottles and cans can be preheated.2° F (85-94° C) for about 30 seconds is adequate to reduce the microbe count and prepare the juice for filling. color. Proper blending of juice concentrate and other flavor fractions is necessary to ensure the final juice product achieves a high quality flavor. so the juice is heated without direct contact with the heating surface. Several pasteurization methods are commercially used. and flavor. resulting in an aesthetically undesirably beverage. Packaging/filling • To ensure sterility. The preheated juice is further heated with steam or hot water to the pasteurization temperature. Pasteurization also inactivates certain enzymes which cause the pulp to separate from the juice. pasteurized juice to preheat incoming unpasteurized juice. Another method uses hot. and depending on the design of the package.Reconstitution • When the juice processor is ready to prepare a commercial package for retail sale. Orange juice packaged in this manner has a shelf life of 6-8 months at room temperature.
health tips & for many types of contest also.Now a days technology plays a major role in business. Fax MachinesIt is required to send & receive the documents quickly. PLANT LAYOUT 13 . the technology. From starting up a company to taking feedbacks in last. It helps to communicate any message in a very short time period. juice cooler. is based on machineries like juice extractor. computer assists us To maintain the records & database of business. recipies. which are very essential. It is time saving machine for collecting any type of written data. To use internet facilities. vacuum evaporator. Fruit juice processor plant. fruits & vegetable washer. EquipmentsThe whole manufacturing process of converting raw materials into finished goods. suggestions. To take orders. 8. technologies are being used everywhere. are- ComputersIn organizations. In fruit juice industry. filler & sealer machines etc. To take feedback from customers side by internet. Telephones – For providing a proper communication channel in organization telephone facilities are there.
finance. As income rises and urbanization grows there is a shift towards more expensive but conveniently packed and available foods. and allowing margin for wholesalers and retailers.80-95 . 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.10. 9. However. etc) sell for a price ranging from RS. Mango. Demand for fruit juice is forecasted to grow at the rate of 6% per annum . about 900 m2 is built up area. canteen. we have provided proper ventilation. DISTRIBUTORS- 14 . On the back side we have manufacturing unit and the cold storage. Pineapple. fruity juices of various types (Orange. 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. hr. price and change in the consumption habits of the population. 80 is proposed. a factory-gate price of RS. There are air conditioners & mice system in the conference room. sales. The remaining will be an open space for parking and future expansion.1. drinking water. All the departments are well furnished and computerized with video cameras in manufacturing area also. proper lighting etc. and the quality is competitive enough with similar imported products. Currently. out of which million is required for plant and machinery. In front we have reception after reception on the right side we have our office and on the left side we have marketing.000. and production departments and conference hall. The present demand for the proposed product is estimated at 144 tonnes per annum. The future demand for agro-industrially processed orange and mandarin juice is mainly a function of urbanization. Apple. separate toilets. Of this. The total investment requirement is estimated at RS. thus. In that plant. The average price would. Taking this price as a reference.00. income. be RS.85 per 500 millitre in the retail market. The service of first aid related to any industrial accidents as well as physical trouble .The total land area requirement of the plant including provision for open space is 1500 square meter. parking.
We cover Delhi. For Delhi side. Mr. Anoop Mittal and Mr. Jaideep Singh in Noida & Ghaziabad. 10. Noida & Ghaziabad as our target markrt. For the reach of the customers. As Hapur side is a village area so our suppliers provide us fresh and good quality raw material at reasonable rates. Abhishek Guha. For the supply of raw material we have the following two suppliers 1.A suitable distribution system for fruit juice is one. Harendar singh chaudhary (permanent supplier) 2. Mr. which relies on wholesaler. 11. We have one permanent supplier and one optional supplier for emergency situation. MAJOR COMPETITORS OF FRUIT JUICE INDUSTRY IN INDIA 15 . we have a distributor Mr. who in turn would ensure proper distribution through the existing retail channels (supper markets and grocery shops). SUPPLY AND SOURCES FOR RAW MATERIAL The first step in the manufacturing of fruit juice is the supply and the source of raw material. distribution of our product-“FRESHEN Juice”-is carried out by Mr. Ajeet Kumar (optional) Our both suppliers our from Hapur side. So the supply of raw materials from village area reduces the cost incurred in production.
In fruit juice industry. Fruit-based milk drinks (market size Rs 20 crore to Rs 25 crore) like N-joi are currently stagnating. Dabur and Pepsi Foods aren’t the only companies that are moving into overdrive in the juice business. Pepsi Foods. has now also launched an apple-peach combination juice and a mixed fruit variant. 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). Mother Dairy and even the small Ladakh Foods are betting big money on this market by flooding it with new fruit beverages. As Indians take bigger swigs than ever before of packaged juices a slew of companies are hoping to grab a share of the action. Ladakh Foods. Pepsi Foods that has recently launched Tropics. NAME OF MAJOR PLAYERS – 16 . It has also launched a pomegranate juice and a water melon drink. A jamun variant will soon follow. which recently launched the Sofit brand. Godrej Industries’ Foods Division. mixed fruit. grape and an orange-apple combination. Safal is currently available in orange. makers of the Leh Berry seabuckthorn berry 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. 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. Pepsi has started out with a relatively unadventurous mango flavour but it will soon be putting guava and litchi on the shelves. Parle Agro — of Frooti and N-joi fame — too is rumoured to be on the verge of new launches. is experimenting with this market for the second time. a new range of what are called nectars in the fruit juice business. another emerging segment reckoned to be worth about Rs 15 crore to Rs 20 crore is expected to grow rapidly. the two major players like Dabur Foods. The swift growth in the market is attracting newcomers like Mother Dairy which recently launched the Safal brand of juices. Godrej.
MOTHER DAIRY FOOD PEPSI FOOD LADAKH FOOD 17 .
For Safal. 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. With the launch of Safal juices. the pricing issue plaguing this industry can be better tackled. as against other flavours for which sourcing has to be done from other countries. our intention is to grow the juice market further by providing a great-tasting product to the consumer at the right value. with its expertise in producing and marketing various horticultural products in India as well as overseas. and can soon emerge as a major sourcing base for other exotic fruits for Tropicana's international market. 18 . India is now among the top ten markets for Tropicana worldwide. juices are a logical extension of its portfolio. Pepsi recently launched Tropicana Tropics Mango Nectar. The introduction of Tropics Mango Nectar will be followed by Tropics Litchi and Tropics Guava. Which means that if the fruit juice producers work on further development of backward linkages.DABUR FOOD GODAREJ FOOD PEPSI has 14 plants in India and 2 of them work on tetra pack.
00.4.production costs =1.Rs Fixed cost.39.000 Net sales.100 13.00.000 4. NO. 35.39.11. 4. 6.63.85.000 Total cost of production= Initial investment + expenses = 35. PARTICULARS Plant and machinery Advertisement Legal charges Preliminary expenses Raw material Other Machineries Case In Hand Furniture Land TOTAL AMOUNT(Rs. STATEMENT SHOWING RECIEPTS & PAYMENTS INITIAL INVESTMENTS S.000 = Rs. BREAK EVEN POINT ANALYSIS Total Unit produced.000 18.104.22.1680 19 . 9.00.00.50.000 40.85.) 10.100= Rs. 3.Rs.Rs. 8.48. 7.19.100 Operating expenses.000 4. 5.000 Variable costs.12.000 10.Rs.000 25.00. 20.48. 1. 2.000 60. 1. 1.100 + 83.000 83.00.000-1.000 11.40.19.00. Net profit =sales .
RECIEPT & PAYMENT STATEMENT Cr.000 TOTAL 1. 90 each) 54.000 1.45 each) 1 lt.00.18 each) 500 ml tetra pack (90.100 B. Dividend on 6% Pre.00.50. Office expenses Transportation Expenses Packaging Expenses 5.000 1.50.00.000 2.550 1.620 2.00. RECIEPT SALESFruit juice – 200 ml tetra pack (3.63.000 35.00.) 1.500 each Dividend on 6% equity shares @ Rs. 40.00.000 Utility expenses (water& electricity) 45.000 Dr.000 Interest on loan @ 6%.) PAYMENT PURCHASESalary & wages Depreciation Furniture.000 1. tetra pack (50.000 AMOUNT(RS.300 each.E.P.00.000 50.930 on on 20.000 units @ Rs.000 units @ Rs.000 units @ Rs.39.51. Depreciation machines.00.00.00.% = Total fixed expenses / total fixed expenses + operating expenses*100 = 20 .50. AMOUNT(RS. Shares @ Rs.
Obviously. Convenience is no longer the selling point. a Tetra Pack study has found that a whopping 86 percent of the fruit juice market is still lying untapped. is experimenting with this market for the second time. Fruit-based milk drinks (market size Rs 20crore to Rs 25crore) like N-joi are currently stagnating. another emerging segment reckoned to be worth about Rs 15 crore to Rs 20 crore is expected to grow rapidly. But fruit-based soya milk. 21 . the naturalness is. And then there is the income factor. which recently launched the Sofit brand. its soya milk brand “Great Shakes” failed miserably because of its taste. 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. some segments are doing better than others. Consumers perceive this as the next best thing to having a fresh fruit.. 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. Even when the fruit juice/nectar market is projected to grow at a scorching pace of 40 percent. The fruit juice category is rapidly growing by over 50 percent because it's seen as healthy compared to soft drinks. non-sugar variants find flavour with fitness freaks. The proliferation of supermarkets and malls in metros and mini-metros (key markets for this category). The fruit drink market in which juice accounts for 30 per cent. added to the growth story as well.14. Also. nectar is 10 per cent and fruit drinks are 60 per cent of the market today. Godrej. has grown at a 20 per cent to 25 per cent rate. They are more hygienic than roadside fruit juices and are a big hit with yuppies. the demand for healthier products like packaged fruit juice is only going to increase in the times to come. With the market growing at a healthy rate and with changing lifestyles and rising levels of health consciousness among consumers today. Ten years back.
The market has suddenly picked up since 1994-95 . The above example explains clearly that this industry has been boomed in last decades. Tropicana & Real holding 40% market shares each. And that is the main reason to be interested in the fruit juice processing & supply. so. 22 .Rs. In this industry. Nectars – juice with pulp content between 40. was introduced in the tetra packs in 1985 & since then it has been a leader in its segments. 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%. Parle Agro’s Frooti.100 crore packaged fruit juice market is estimated to be growing at 20% to 25% annually. 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. a mango drink.80% Juices –with pulp content more than 80%.
Income Tax ReliefUnder Income Tax Act. Value added tax. Partnership Act. Custom Duty Relief• • Custom duty reduced from 7. Customs duty on packaging machines reduced from 15 percent to 5 percent. 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. TAX APPLICATION Various Corporate laws of India like Companies Act. Customs & Excise duty there are various other Indirect Taxes applicable to business organizations in India like Service tax.5% to 5% on food processing machinery. 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. govern the working of business organizations in India . Central Sales tax. Apart from the most common indirect tax i.15. etc. 23 .e. preserve and package fruits and vegetables. 20% to 10% on refrigerated vans.
LEGAL ASPECTS No industrial license is required for almost all of the food & agro processing industries under the Industries (Development & Regulation) Act. The Ministry covers the products of fruits and vegetables.1951. Similarly their Incubatees whose annual business turnover does not exceed 50 lakhs exempted from service tax for the first three years. The Ministry of Food Processing Industries is the main central agency responsible for promoting and regulating processing sector. 1955 lays down specifications for various food products for the food safety. meat.All services provided by Technology Business Incubators exempted from service tax. 16. except for some items like: beer. potable alcohol & wines. • • Prevention of Food Adulteration Act. poultry. • • Essential Commodities Act: A number of quality control orders have been issued under Essential Commodities Act such as FPO. 24 . Registration of co. Meat Product Order and Vegetable Oils Control Order. Ministry acts as a catalyst for bringing in greater investments into this sector. There are a number of food laws being implemented by various Ministries/Departments. • Food processing industries were included in the list of priority sector for bank lending in 1999. fishery. With proper documentation & legal procedures registration is done by registrar. Agriculture Produce (Grading & Marking) Act which lays down the specifications for various agricultural commodities including some processed foods. These orders primarily meant for regulating the hygienic conditions. cane sugar. grains. To be more specific following are orders for the food safety and quality. aerated water and soft drink. MMPO. BIS is the largest body for formulating standards for various food items. nonmolasses based alcoholic drinks. hydrogenated animal fats & oils etc. dairy. Laws are being operated by Bureau of Indian Standards (BIS). is a very important step before establish the business. consumer food. and items reserved for exclusive manufacture in the small scale industry.
• • • Fruit Products Order -1955 Meat Food Products Order. 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. 25 . 1992 17. but also about the migration of the ‘Made in India’ tag traveling abroad.
we estimated total investment of Rs. it shows a net profit of Rs.50. of units produced are 4.51.61.000 and got a profit of Rs.000 in the starting year. 3.The total no.35.71.000.1.13.In this Business Plan. Lastly. the business of fruit juice processing is very rapid in growth of its consumption rate.79. 26 . The overall study of this business plan has made us able to understand the whole process & fund allocation of fruit juice industry .1.000. So the target customers are easily using it. It is a product used by everyone. The estimated growth rate is 6% per annum in this industry.
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