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

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. By taking advantage of health consciousness pervading the market we will introduce our product to increase our target customers. We all know very well that the present era of business is full of cut throat competition. With the market growing at a healthy rate and with changing life styles and with rising levels of health consciousness among consumers today. Our juice is 100% juice with no water added and free from any type of colours and flavours. So our vision is to cultivate a more personal & longer term relationship with customers. the demand for healthy products is increased. 2.• • • • • 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. We aim to capture maximum target costumers by providing them a healthy and nutritive product. We are aiming at customers with more exotic tastes with some mix flavour of fruits. PURPOSE OF STUDY 4 . We have an objective to serve our consumers with a tasty & healthy fruit product . Our mission is to provide natural nutrients to the customers. So. which would also be full of nutrients without any preservatives. These fruit juices are free from any type of colours . flavours and preservatives.

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

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

KEY SUCCESS FACTORS – The main key strengths of our company. meter.35. 54. ADDRESS“S & S GROUP LTD.500 Borrowed capital.) .Rs.  Sourcing of raw materials. 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.  Promotion of products by using hoarding at bus stops.P.500 on bank loan @ 6% per annum. 54.  Flexible & effective marketing mix including price. we have our plant & machinery with official operation departments.17. The area required is 1500 sq. So VIJAI NAGER town of Ghaziabad is proposed to be the location for the envisaged plant.1.  Distribution strategies & reach in market. Here.08. CAPITAL INVESTMENT. Future plans    To compete with existing companies in fruit juice industry. distribution & products.17. red lights & other crowded areas. are as follows. which indicates the future growth of “FRESHEN” fruit juice Better technologies used in processing & packaging.  Regional taste preferences. To develop customer base and building customer loyalty. we are targeting to command 30% shares in next 5 years. To create customer’s awareness regarding products. To spend 15% of sales on promotional activities.Rs. 7 .000 Owned Capital. promotion. 4.Rs.” NH-24 Near Vijay Nagar bypass GHAZIABAD (U.

5. 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.

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

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

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

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

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

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

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

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

MOTHER DAIRY FOOD PEPSI FOOD LADAKH FOOD 17 .

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. juices are a logical extension of its portfolio. India is now among the top ten markets for Tropicana worldwide. and can soon emerge as a major sourcing base for other exotic fruits for Tropicana's international market. with its expertise in producing and marketing various horticultural products in India as well as overseas. The introduction of Tropics Mango Nectar will be followed by Tropics Litchi and Tropics Guava. Pepsi recently launched Tropicana Tropics Mango Nectar. which is made entirely from mangoes sourced from within India. With the launch of Safal juices. as against other flavours for which sourcing has to be done from other countries. 18 . Significantly India is now an approved source for mango pulp within the Tropicana worldwide system. For Safal.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.

00. 20. BREAK EVEN POINT ANALYSIS Total Unit produced. 8. PARTICULARS Plant and machinery Advertisement Legal charges Preliminary expenses Raw material Other Machineries Case In Hand Furniture Land TOTAL AMOUNT(Rs.000 Net sales.50.19.00.48. 1.39. 5.00.100 Operating expenses. NO.85.100 13.Rs.000 11. 1. 7.Rs Fixed cost.000 Variable costs.00.000 40. 3.4.50.48.85.000 = Rs.000 4.00.900 19 .) 10. 2.000-1.Rs.100= Rs.19.00.100 + 83.63.Rs.production costs =1. 6.000 60. 4.39.000 4.00. 1. 9.63.000 83.12. 35.000 10.000 Total cost of production= Initial investment + expenses = 35.000 25.40.000 4. STATEMENT SHOWING RECIEPTS & PAYMENTS INITIAL INVESTMENTS S.11. Net profit =sales .

930 on on 20.000 units @ Rs.39.00. AMOUNT(RS.000 Dr.00.000 units @ Rs. 40.% = Total fixed expenses / total fixed expenses + operating expenses*100 = 20 .50.000 Utility expenses (water& electricity) 45.63.00.00.51. Office expenses Transportation Expenses Packaging Expenses 5.000 1.50.50.000 35.18 each) 500 ml tetra pack (90.) 1.45 each) 1 lt.000 1.000 TOTAL 1.) PAYMENT PURCHASESalary & wages Depreciation Furniture.000 units @ Rs.00.00.000 Interest on loan @ 6%.00.E.100 B.00.00.P.000 AMOUNT(RS.000 1. Shares @ Rs.500 each Dividend on 6% equity shares @ Rs. Dividend on 6% Pre. tetra pack (50. RECIEPT SALESFruit juice – 200 ml tetra pack (3. 90 each) 54. Depreciation machines.000 2.620 2.550 1.RECIEPT & PAYMENT STATEMENT Cr.000 50.300 each.00.

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

22 . Tropicana & Real holding 40% market shares each. Parle Agro’s Frooti. 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. 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. 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.100 crore packaged fruit juice market is estimated to be growing at 20% to 25% annually. investment in this industry is not at all a wrong decision. In this industry. The market has suddenly picked up since 1994-95 . so. And that is the main reason to be interested in the fruit juice processing & supply.80% Juices –with pulp content more than 80%. a mango drink.

etc. 23 . preserve and package fruits and vegetables. Central Sales tax. Income Tax ReliefUnder Income Tax Act. 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 . Partnership Act. Customs duty on packaging machines reduced from 15 percent to 5 percent. 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. Value added tax. Apart from the most common indirect tax i. 20% to 10% on refrigerated vans. 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.5% to 5% on food processing machinery. Agricultural growth has been given high priority which turn has opened up new thrust food processing industry.15. Custom Duty Relief• • Custom duty reduced from 7.e. TAX APPLICATION Various Corporate laws of India like Companies Act.

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

1973 Milk and Milk Products Order.• • • Fruit Products Order -1955 Meat Food 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. but also about the migration of the ‘Made in India’ tag traveling abroad. 1992 17. 25 .

13. The overall study of this business plan has made us able to understand the whole process & fund allocation of fruit juice industry .000.71.35.51. So the target customers are easily using it. we estimated total investment of Rs.000.1. It is a product used by everyone.000 in the starting year.1. 3.50.000 and got a profit of Rs. Lastly. The estimated growth rate is 6% per annum in this industry.The total no. of units produced are 4. the business of fruit juice processing is very rapid in growth of its consumption rate. 26 . it shows a net profit of Rs.In this Business Plan.79.61.

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