This action might not be possible to undo. Are you sure you want to continue?
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
increased literacy. plantation. with a number of fiscal relief and incentives. 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. our objectives are- 3 . for minimizing pre/post harvest wastage. OBJECTIVEAs a great opportunity in this industry. chocolates and cocoa products. fisheries. very popular among the age group of 14 – 30 & above.leading to rapid growth and new opportunities in food and beverages sector. Well developed infrastructure and distribution network. alcoholic beverages. At present the food processing sector employs about 13 million people directly and about 35 million people indirectly. packaging and marketing.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. packaging which enhance shelf life of food products. The food processing industry provides vital linkages and synergies between industry and agriculture. The Food Processing Industry sector in India is one of the largest in terms of production. milk and milk products. export and growth prospects. India has huge scientific and research talent pool . meat and poultry. generating employment and export growth. The government has accorded it a high priority. which is now a days. Our target customers are women in homes. increased number of women in workforce. Rapid urbanisation. grain processing and other consumer product groups like confectionery. rising per capita income. sorting. In this series we are moving for fruit juice processing. mineral water. Advantage in India• • • • • • • • India is one of the largest food producers in the world. children & teenagers in form of in-home & out-home consumption. to encourage commercialization and value addition to agricultural produce. 200 million more consumers expected to shift to processed food by 2010. Soya-based products. India is looking for investment in infrastructure. India's food processing sector covers a wide range of products fruit and vegetables. changing life style. India produces annually 90 million tonnes of milk (highest in the world) & 150 million tonnes of fruits & vegetables (second largest). consumption.
• • • • • Our intension is to grow the juice market by providing a new & great testing product to consumers at right value. We have an objective to serve our consumers with a tasty & healthy fruit product . we are targeting to establish our company at the top as a pure & fresh juice provider company. flavours and preservatives. We are aiming at customers with more exotic tastes with some mix flavour of fruits. 2. PURPOSE OF STUDY 4 . Our juice is 100% juice with no water added and free from any type of colours and flavours. These fruit juices are free from any type of colours . 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. We aim to capture maximum target costumers by providing them a healthy and nutritive product. With the market growing at a healthy rate and with changing life styles and with rising levels of health consciousness among consumers today. So. We all know very well that the present era of business is full of cut throat competition. Our mission is to provide natural nutrients to the customers. which would also be full of nutrients without any preservatives. the demand for healthy products is increased. By taking advantage of health consciousness pervading the market we will introduce our product to increase our target customers. So our vision is to cultivate a more personal & longer term relationship with customers.
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. fresh fruit from our raw material suppliers. staff. We came to know about the legal aspect of the company. The tetra packing adds freshness & nutrient value to our product. which would be full of nutrients without any chemical preservatives. We put that fruits in process by using required equipments. organize. 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.Our business proposal is to set up a plant of fruit juice processing & supply. The purpose of the study of business proposal is to enhance our knowledge of entrepreneurship and to make our self introduce to the corporate world by establishing our own business. we start packaging of juice in tetra packs. By starting a business in fruit juice industry. In this we are aiming to manufacture fresh. After converting raw material into finished goods through various techniques. pure & healthy juice with different flavours. We start processing of fruits by receiving the raw materials ie. 3. needs & requirements of raw materials and proper distribution & promotion of products. direct and control the things. THE BUSINESS 5 .
GROUP LTD.. whereas. Drinking juice is not a part of our culture. but in west. India is a market of diversity. 6 . 200 ml. Findings indicate the most packaged juice drinking customers travel abroad on holidays. Our product “FRESHEN Juice” have orange.followed by apple. In India. explains that— • • • • Most preferred flavour is orange . & S. A marketing research . 55% of respondents consume 1 liter packs at home and 45% of that use 200 ml pack. price point of product. the consumption of fruit juice intake home pack is estimated at 17.250 mn liter .. Easy to have on the breakfast table. Awareness of trial level of packaged juice is higher in Delhi in comparison to Mumbai.(S. Fulfill the customer’s need of Good Taste with Health. apple & pineapple flavor in 200 ml. one starts the day with breakfast & a glass of juice.diverse with regards to income. 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. culture & preferences and marketer has to use these diverse characteristics of market.) India is a tropical country & has accorded a favorable reception to thirst quenchers such as fruit juice & aerated soft drinks. Our FRESHEN fruit juices are full of benefits with the characterstics as Nutritive contents. Juice is to a great extent considered as a luxury.which are being bottled & sold in large quantity through out the country. tetrapacks.& 1 lt. sweet orange & mixed fruit juice in India. The nutritive value of real fruit beverage is far greater than that of synthetic products .carried out across 1200 adults in Mumbai & Delhi. per capita consumption of fruit juice is at a fraction of liter ie. 500 ml. not a necessity in our society. Thirst quenching. We drink water in our meals. Easy to carry & use in traveling.
ADDRESS“S & S GROUP LTD.17.000 Owned Capital. we are targeting to command 30% shares in next 5 years. So VIJAI NAGER town of Ghaziabad is proposed to be the location for the envisaged plant. distribution & products. 54. Promotion of products by using hoarding at bus stops. 4. we have our plant & machinery with official operation departments. Sourcing of raw materials. Distribution strategies & reach in market. CAPITAL INVESTMENT. To create customer’s awareness regarding products. which indicates the future growth of “FRESHEN” fruit juice Better technologies used in processing & packaging. The area required is 1500 sq.35.KEY SUCCESS FACTORS – The main key strengths of our company. 54.17.P.500 on bank loan @ 6% per annum. red lights & other crowded areas.08. are as follows. To develop customer base and building customer loyalty. meter. promotion.) .” NH-24 Near Vijay Nagar bypass GHAZIABAD (U. To spend 15% of sales on promotional activities. Future plans To compete with existing companies in fruit juice industry. Regional taste preferences. Here. 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. 7 .500 Borrowed capital.Rs.1. Flexible & effective marketing mix including price.Rs.Rs.
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 .5.
scrapers along with the sieves. Capacity -1MT-2MT/hour Vacuum Evaporator. The Pulper (Juice Extractor). Tomato. mangos.1 9 . Passion Fruit. This machine is used to extract juice & pulp from fruits like Mango. moisture trape. pears & other vegetables. Papaya & Vegetables. Pineapple. Pasteurizer.1 • • • • • • Vapour outlet Charging hole BSP boss for pressure/vacuum gauge Necessary fittings for steam inlet Light & sight whole.Rotary Fruit & Vegetable Washer. to 4000kg / Hr.1 • • • . The Machine is driven by Electric Motor consisting of rotary blades.2 • Suitable for washing apples. The Machine can be used as Finisher by changing the sieves Capacity -100 Kg. vacuum pump. Capacity -200kg-500kg /batch input. providing with glass Complete with condenser.
• . Supply. where they are unloaded by a gravity feed onto a conveyor belt that transports the fruit to a storage bin. available in different type and capacity Fruit juice Processing Plant- • Design. or sent to plants for juice processing. The oranges are generally shipped via truck to juice extraction facilities. Engineering. • Fruit Juice Processing Plant • Fruit Juice Packing Plant Juice cooler. Suitable for Fruit Processing.1 • For controlling ascorbic acid to prevent the reactions in fruit juice. The collected fruit is sent to packing centers where it is boxed for sale as whole fruit. Milk Processing. Installation. Filler & Sealer machine• For filling juice in tetra packs & then sealing that pack finally. Testing & Commission of Fruit Juice Processing plant . a crew of pickers is sent in to pull the fruit off the trees. Cold Storage The Manufacturing ProcessHarvesting/collection • When the mature fruit is ready to pick. 10 .
The rotating reamers express the juice as the orange halves travel around the conveyor line. At this point. Proper size is critical for the extraction process. 11 . The fruit is rinsed and dried. Juice concentrate is then stored in refrigerated stainless steel bulk tanks until is ready to be packaged or reconstituted. ream. The second type of extraction . Extraction • Proper juice extraction is important to optimize the efficiency of the juice production process as well as the quality of the finished drink. or TASTE for short. 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.Cleaning/Grading • The fruit must be inspected and graded before it can be used.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. Concentration • Concentrated juice extract is approximately five times more concentrated than squeezed juice. There are two automated extraction methods commonly used by the industry. Diluted with water. Juice is commonly concentrated with a piece of equipment known as a Thermally Accelerated Short-Time Evaporator. 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. The pulp is separated from the juice by ultra-filtration and pasteurized. This process removes debris and dirt and reduces the number of microbes. • The extracted juice is filtered through a stainless steel screen before it is ready for the next stage. The first places the fruit between two metal cups with sharpened metal tubes at their base. The certified fruit is then transported along a conveyor belt where it is washed with a detergent as it passes over roller brushes. and eject a peel in about 3 seconds. 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. Modern extraction equipment of this type can slice. 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.
This step must be carefully controlled because during the concentration process much of the juice's flavor may be lost. The filling head meters the precise amount of product into the container. Packaging/filling • To ensure sterility.2° F (85-94° C) for about 30 seconds is adequate to reduce the microbe count and prepare the juice for filling.Reconstitution • When the juice processor is ready to prepare a commercial package for retail sale. Several pasteurization methods are commercially used. Orange juice packaged in this manner has a shelf life of 6-8 months at room temperature. One common method passes juice through a tube next to a plate heat exchanger. Where possible. color. the pasteurized juice should be filled while still hot. Another method uses hot. Pasteurization • Pasteurization is still required to further retard spoilage. it may immediately invert to sterilize the lid. pasteurized juice to preheat incoming unpasteurized juice. reaching a temperature of 185-201. and depending on the design of the package. concentrate is pulled from several storage batches and blended with water to achieve the desired sugar to acid ratio. the containers are cooled as fast as possible.HOW 12 . so the juice is heated without direct contact with the heating surface. Typically. and flavor. Proper blending of juice concentrate and other flavor fractions is necessary to ensure the final juice product achieves a high quality flavor. After filling. The preheated juice is further heated with steam or hot water to the pasteurization temperature. 7. TECHNICAL KNOW. metal or glass bottles and cans can be preheated. resulting in an aesthetically undesirably beverage. Pasteurization also inactivates certain enzymes which cause the pulp to separate from the juice.
is based on machineries like juice extractor. PLANT LAYOUT 13 . To take feedback from customers side by internet. are- ComputersIn organizations. health tips & for many types of contest also. suggestions.Now a days technology plays a major role in business. EquipmentsThe whole manufacturing process of converting raw materials into finished goods. In fruit juice industry. vacuum evaporator. To use internet facilities. the technology. It is time saving machine for collecting any type of written data. Telephones – For providing a proper communication channel in organization telephone facilities are there. recipies. Fruit juice processor plant. From starting up a company to taking feedbacks in last. filler & sealer machines etc. computer assists us To maintain the records & database of business. juice cooler. It helps to communicate any message in a very short time period. 8. fruits & vegetable washer. which are very essential. Fax MachinesIt is required to send & receive the documents quickly. To take orders. technologies are being used everywhere.
income. 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. DISTRIBUTORS- 14 . Demand for fruit juice is forecasted to grow at the rate of 6% per annum . and the quality is competitive enough with similar imported products. All the departments are well furnished and computerized with video cameras in manufacturing area also. The remaining will be an open space for parking and future expansion. 9. thus. the opportunity that such changes present could be exploited only if price of the items is not prohibitive when compared to fresh fruit. price and change in the consumption habits of the population. As income rises and urbanization grows there is a shift towards more expensive but conveniently packed and available foods. The average price would. The total investment requirement is estimated at RS.1.00. hr.000. In that plant. There are air conditioners & mice system in the conference room. Apple. 80 is proposed. On the back side we have manufacturing unit and the cold storage. The future demand for agro-industrially processed orange and mandarin juice is mainly a function of urbanization. proper lighting etc. The service of first aid related to any industrial accidents as well as physical trouble . parking. Of this. and allowing margin for wholesalers and retailers. canteen.85 per 500 millitre in the retail market. drinking water. out of which million is required for plant and machinery. we have provided proper ventilation. The present demand for the proposed product is estimated at 144 tonnes per annum. In front we have reception after reception on the right side we have our office and on the left side we have marketing. fruity juices of various types (Orange. sales. a factory-gate price of RS. Currently. be RS. Mango. and production departments and conference hall. However. finance.80-95 . etc) sell for a price ranging from RS.10. The plant will create employment opportunities for 37 persons. Pineapple. Taking this price as a reference. separate toilets. about 900 m2 is built up area.The total land area requirement of the plant including provision for open space is 1500 square meter.
So the supply of raw materials from village area reduces the cost incurred in production. MAJOR COMPETITORS OF FRUIT JUICE INDUSTRY IN INDIA 15 . As Hapur side is a village area so our suppliers provide us fresh and good quality raw material at reasonable rates. We cover Delhi. Jaideep Singh in Noida & Ghaziabad. 11. We have one permanent supplier and one optional supplier for emergency situation. For Delhi side. For the supply of raw material we have the following two suppliers 1. 10. Ajeet Kumar (optional) Our both suppliers our from Hapur side. Mr. Noida & Ghaziabad as our target markrt. we have a distributor Mr.A suitable distribution system for fruit juice is one. Mr. For the reach of the customers. distribution of our product-“FRESHEN Juice”-is carried out by Mr. Abhishek Guha. which relies on wholesaler. Harendar singh chaudhary (permanent supplier) 2. who in turn would ensure proper distribution through the existing retail channels (supper markets and grocery shops). Anoop Mittal and 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.
Parle Agro — of Frooti and N-joi fame — too is rumoured to be on the verge of new launches. another emerging segment reckoned to be worth about Rs 15 crore to Rs 20 crore is expected to grow rapidly. Mother Dairy and even the small Ladakh Foods are betting big money on this market by flooding it with new fruit beverages. It has also launched a pomegranate juice and a water melon drink. makers of the Leh Berry seabuckthorn berry drink. As Indians take bigger swigs than ever before of packaged juices a slew of companies are hoping to grab a share of the action. Pepsi Foods that has recently launched Tropics. Godrej Industries’ Foods Division. mixed fruit. NAME OF MAJOR PLAYERS – 16 . Pepsi has started out with a relatively unadventurous mango flavour but it will soon be putting guava and litchi on the shelves. Godrej. Safal is currently available in orange. Pepsi Foods. Dabur and Pepsi Foods aren’t the only companies that are moving into overdrive in the juice business. has now also launched an apple-peach combination juice and a mixed fruit variant.In fruit juice industry. which recently launched the Sofit brand. A jamun variant will soon follow. But fruit-based soya milk. grape and an orange-apple combination. The DABUR company which has turned fruit juices into a Rs 60-crore business has been turning on the taps in recent months. Fruit-based milk drinks (market size Rs 20 crore to Rs 25 crore) like N-joi are currently stagnating. the two major players like Dabur Foods. 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. 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). is experimenting with this market for the second time. a new range of what are called nectars in the fruit juice business. The swift growth in the market is attracting newcomers like Mother Dairy which recently launched the Safal brand of juices. Ladakh Foods.
MOTHER DAIRY FOOD PEPSI FOOD LADAKH FOOD 17 .
18 .DABUR FOOD GODAREJ FOOD PEPSI has 14 plants in India and 2 of them work on tetra pack. which is made entirely from mangoes sourced from within India. India is now among the top ten markets for Tropicana worldwide. For Safal. the pricing issue plaguing this industry can be better tackled. Which means that if the fruit juice producers work on further development of backward linkages. with its expertise in producing and marketing various horticultural products in India as well as overseas. With the launch of Safal juices. Pepsi recently launched Tropicana Tropics Mango Nectar. juices are a logical extension of its portfolio. and can soon emerge as a major sourcing base for other exotic fruits for Tropicana's international market. The introduction of Tropics Mango Nectar will be followed by Tropics Litchi and Tropics Guava. Significantly India is now an approved source for mango pulp within the Tropicana worldwide system. our intention is to grow the juice market further by providing a great-tasting product to the consumer at the right value. as against other flavours for which sourcing has to be done from other countries.
000 10. 1. 2.) 10.39.000 40.39. 9.48.000 4.Rs Fixed cost.Rs.85.11.production costs =1. 5. 1.000 = Rs.100 Operating expenses.000-1.00.19.00. BREAK EVEN POINT ANALYSIS Total Unit produced.00.63. 8.100= Rs.12. 35. STATEMENT SHOWING RECIEPTS & PAYMENTS INITIAL INVESTMENTS S. NO.50. 7.000 Variable costs. 20.000 4.48.00.4.00.19.000 4.000 60. 4.85.00. 6.100 + 83.40.Rs.000 83.000 Total cost of production= Initial investment + expenses = 35.000 25. 1.63. Net profit =sales .000 Net sales. 3.Rs.000 11.50. PARTICULARS Plant and machinery Advertisement Legal charges Preliminary expenses Raw material Other Machineries Case In Hand Furniture Land TOTAL AMOUNT(Rs.100 13.00.900 19 .
00.000 AMOUNT(RS. RECIEPT SALESFruit juice – 200 ml tetra pack (3.51.620 2.000 Utility expenses (water& electricity) 45.000 units @ Rs.00.000 50.00.63.000 Interest on loan @ 6%.000 Dr.) PAYMENT PURCHASESalary & wages Depreciation Furniture.00.000 2.000 1.39.% = Total fixed expenses / total fixed expenses + operating expenses*100 = 20 .000 units @ Rs.00. 90 each) 54.930 on on 20.E.00. tetra pack (50.50.50.000 35. Depreciation machines.550 1. Dividend on 6% Pre.500 each Dividend on 6% equity shares @ Rs.00. 40.18 each) 500 ml tetra pack (90. AMOUNT(RS. Office expenses Transportation Expenses Packaging Expenses 5.RECIEPT & PAYMENT STATEMENT Cr.000 units @ Rs.45 each) 1 lt.50.P.000 1.000 TOTAL 1.00.300 each.00.00. Shares @ Rs.100 B.) 1.000 1.
Convenience is no longer the selling point. the demand for healthier products like packaged fruit juice is only going to increase in the times to come. 21 . Obviously. its soya milk brand “Great Shakes” failed miserably because of its taste. Even when the fruit juice/nectar market is projected to grow at a scorching pace of 40 percent. Also. Ten years back. the naturalness is. has grown at a 20 per cent to 25 per cent rate. a Tetra Pack study has found that a whopping 86 percent of the fruit juice market is still lying untapped.. 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. Godrej. 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). added to the growth story as well. They are more hygienic than roadside fruit juices and are a big hit with yuppies. And then there is the income factor. Fruit-based milk drinks (market size Rs 20crore to Rs 25crore) like N-joi are currently stagnating. which recently launched the Sofit brand. 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. another emerging segment reckoned to be worth about Rs 15 crore to Rs 20 crore is expected to grow rapidly. 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. nectar is 10 per cent and fruit drinks are 60 per cent of the market today. With the market growing at a healthy rate and with changing lifestyles and rising levels of health consciousness among consumers today. But fruit-based soya milk. is experimenting with this market for the second time. some segments are doing better than others. non-sugar variants find flavour with fitness freaks.14.
22 . In this industry. Parle Agro’s Frooti. 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.100 crore packaged fruit juice market is estimated to be growing at 20% to 25% annually. Nectars – juice with pulp content between 40. a mango drink. The market has suddenly picked up since 1994-95 . was introduced in the tetra packs in 1985 & since then it has been a leader in its segments. investment in this industry is not at all a wrong decision. so. And that is the main reason to be interested in the fruit juice processing & supply.80% Juices –with pulp content more than 80%.Rs. The above example explains clearly that this industry has been boomed in last decades. Tropicana & Real holding 40% market shares each. 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%.
Income Tax ReliefUnder Income Tax Act. etc. preserve and package fruits and vegetables. Wealth tax & Income Tax are the two taxes in India which come under the heading of Direct taxes. Custom Duty Relief• • Custom duty reduced from 7. TAX APPLICATION Various Corporate laws of India like Companies Act. 20% to 10% on refrigerated vans. Value added tax. Customs duty on packaging machines reduced from 15 percent to 5 percent.5% to 5% on food processing machinery.15. 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. Customs & Excise duty there are various other Indirect Taxes applicable to business organizations in India like Service tax. And the excise duty exemption on refrigeration equipment will enhance investments in the cold chain sector and help food and beverage sector. Agricultural growth has been given high priority which turn has opened up new thrust food processing industry. 23 . Apart from the most common indirect tax i.e. Partnership Act. Central Sales tax. govern the working of business organizations in India .
Meat Product Order and Vegetable Oils Control Order. • Food processing industries were included in the list of priority sector for bank lending in 1999. hydrogenated animal fats & oils etc. Ministry acts as a catalyst for bringing in greater investments into this sector. These orders primarily meant for regulating the hygienic conditions. nonmolasses based alcoholic drinks. • • Essential Commodities Act: A number of quality control orders have been issued under Essential Commodities Act such as FPO. Registration of co. The Ministry of Food Processing Industries is the main central agency responsible for promoting and regulating processing sector. potable alcohol & wines.All services provided by Technology Business Incubators exempted from service tax. BIS is the largest body for formulating standards for various food items. 24 . To be more specific following are orders for the food safety and quality. dairy. There are a number of food laws being implemented by various Ministries/Departments. With proper documentation & legal procedures registration is done by registrar. is a very important step before establish the business. cane sugar. LEGAL ASPECTS No industrial license is required for almost all of the food & agro processing industries under the Industries (Development & Regulation) Act. Agriculture Produce (Grading & Marking) Act which lays down the specifications for various agricultural commodities including some processed foods. poultry. 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. and items reserved for exclusive manufacture in the small scale industry. meat. MMPO.1951. aerated water and soft drink. consumer food. except for some items like: beer. 1955 lays down specifications for various food products for the food safety. grains. The Ministry covers the products of fruits and vegetables. • • Prevention of Food Adulteration Act. 16.
• • • 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. 25 . 1992 17. 1973 Milk and Milk Products Order.
000. Lastly. 26 .1.13. of units produced are 220.127.116.11. it shows a net profit of Rs. the business of fruit juice processing is very rapid in growth of its consumption rate.000 and got a profit of Rs. It is a product used by everyone. The estimated growth rate is 6% per annum in this industry.000 in the starting year. 3.000.The total no.In this Business Plan. we estimated total investment of Rs. So the target customers are easily using it.50. The overall study of this business plan has made us able to understand the whole process & fund allocation of fruit juice industry .1.51.61.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.