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Tripura University

(A central university)


A project report on feasibility study on setting up a mixed fruit jam unit in Tripura.


Behind every Endeavour lays the efforts of many individuals who lend their incredible service and support in order to achieve success. In my project entitled A project report on feasibility study on setting up a mixed fruit jam unit in Tripura, I have made an effort to analyze the data collection from different sources for completion of this project work. I would take the opportunity to thank Mrs ANJANA KALAI (MBA FACULTY) under whose supportive guidance I have been able to complete the study paper and have been able to overcome the various problem faced. My project would have been never successful without the help and cooperation of Mr.HARADHAN DEBNATH (HOD OF DEPT OF MANAGEMENT). I would like to extend my thanks and gratitude to my friends as well, for guiding me throughout the work and I am also grateful to our course coordinator Mr. MANISH DAS



An entrepreneur is an enterprising individual who builds capital through risk and/or initiative. As originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to help launch a new venture or enterprise and accept full responsibility for the outcome. Jean-Baptiste Say, a French economist, is believed to have coined the word "entrepreneur" in the 19th century - he defined an entrepreneur as "one who undertakes an enterprise, especially a contractor, acting as intermediatory between capital and labour".

Entrepreneurs become what they are for several reasons. Many, depending on the person, choose to do so to avoid workplace drama, discrimination, being taken advantage of, or just to be their own boss. Another reason people become entrepreneurs is to avoid unemployment and attain job security. When an individual cannot find work, he or she may see starting a business enterprise as a suitable alternative and a good way to ensure he or she is never fired.

The entrepreneur leads the firm or organization and also demonstrates leadership qualities by selecting managerial staff. Management skill and strong team building abilities are essential leadership attributes for successful entrepreneurs. Scholar Robert. B. Reich considers leadership, management ability, and team-building as essential qualities of an entrepreneur. This concept has its origins in the work of Richard Cantillon in his Essai sur la Nature du Commerce en (1755) and Jean-Baptiste Say in his Treatise on Political Economy. Entrepreneurs emerge from the population on demand, and become leaders because they perceive opportunities available and are well-positioned to take advantage of them. An entrepreneur may perceive that they are among the few to recognize or be able to solve a problem. Joseph Schumpeter saw the entrepreneur as innovators and popularized the uses of the phrase creative destruction to describe his view of the role of entrepreneurs in changing business norms. Creative destruction encompasses changes entrepreneurial activity makes every time a new process, product or company enters the markets.


The most significant influence on an individual's decision to become an entrepreneur is workplace peers and the social composition of the workplace. The ability of entrepreneurs to innovate relates to innate traits such as extroversion and a proclivity for risk-taking. According to Schumpeter (1934), the capabilities of innovating, introducing new technologies, increasing efficiency and productivity, or generating new products or services, are characteristics of entrepreneurs. Entrepreneurs are catalysts for economic change. Research has found entrepreneurs to be highly creative with a tendency to imagine new solutions by finding opportunities for profit or reward.An Examination of the Impact of Selected Personality Traits on the Innovat There is a complexity and lack of cohesion between research studies that explore the characteristics and personality traits of, and influences on, the entrepreneur. Most studies, however, agree that there are certain entrepreneurial traits and environmental influences that tend to be consistent. Although certain entrepreneurial traits are required, entrepreneurial behaviours are dynamic and influenced by environmental factors. Shane and Venkataraman (2000) argue the entrepreneur is solely concerned with opportunity recognition and exploitation; although, the opportunity that is recognised depends on the type of entrepreneur which Ucbasaran et al. (2001) argue there are many different types dependent on their business and personal circumstances. However, it should also be noted that there are approaches that appear highly critical against valorized conceptions of entrepreneurs. For example, there are views that attribute pertinent conceptions to scholarly prejudices, such as unrealistically voluntaristic preconceptions on how a "normal" economic agent ought to behave (Ramoglou, 2011; Gartner, 2001). Psychological studies show that the psychological propensities for male and female entrepreneurs are more similar than different. Perceived gender differences may be due more to gender stereotyping. There is a growing body of work that shows that entrepreneurial behavior is dependent on social and economic factors. For example, countries which have healthy and diversified labor markets or stronger safety nets show a more favorable ratio of opportunitydriven rather than necessity-driven women entrepreneurs. Empirical studies suggest that men entrepreneurs possess strong negotiating skills and consensus-forming abilities.

Entrepreneurship is the act of being an entrepreneur or "one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods". This may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting new businesses(referred as Startup Company); however, in recent years, the term has been extended to include social and political forms of entrepreneurial activity. When entrepreneurship is describing activities within a firm or large organization it is referred to as intra-preneurship and may include corporate venturing, when large entities spin-off organizations. According to Paul Reynolds, entrepreneurship scholar and creator of the Global

Entrepreneurship Monitor, "by the time they reach their retirement years, half of all working men in the United States probably have a period of self-employment of one or more years; one in four may have engaged in self-employment for six or more years. Participating in a new business creation is a common activity among U.S. workers over the course of their careers." And in recent years has been documented by scholars such as David Audretsch to be a major driver of economic growth in both the United States and Western Europe. "As well, entrepreneurship may be defined as the pursuit of opportunity without regard to resources currently controlled (Stevenson,1983)" Entrepreneurial activities are substantially different depending on the type of organization and creativity involved. Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only part-time) to major undertakings creating many job opportunities. Many "high value" entrepreneurial ventures seek venture capital or angel funding (seed money) in order to raise capital to build the business. Angel investors generally seek annualized returns of 20-30% and more, as well as extensive involvement in the business. Many kinds of organizations now exist to support would-be entrepreneurs including specialized government agencies, business incubators, science parks, and some NGOs. In more recent times, the term entrepreneurship has been extended to include elements not related necessarily to business formation activity such as conceptualizations of entrepreneurship as a specific mindset (see also entrepreneurial mindset) resulting in entrepreneurial initiatives e.g. in the form of social entrepreneurship, political entrepreneurship, or knowledge entrepreneurship have emerged.

The entrepreneur is a factor in microeconomics, and the study of entrepreneurship reaches back to the work of Richard Cantillon and Adam Smith in the late 17th and early 18th centuries, but was largely ignored theoretically until the late 19th and early 20th centuries and empirically until a profound resurgence in business and economics in the last 40 years. In the 20th century, the understanding of entrepreneurship owes much to the work of economist Joseph Schumpeter in the 1930s and other Austrian economists such as Carl Menger, Ludwig von Mises and Friedrich von Hayek. In Schumpeter, an entrepreneur is a person who is willing and able to convert a new idea or invention into a successful innovation.[5] Entrepreneurship employs what Schumpeter called "the gale of creative destruction" to replace in whole or in part inferior innovations across markets and industries, simultaneously creating new products including new business models. In this way, creative destruction is largely responsible for the dynamism of industries and long-run economic growth. The supposition that entrepreneurship leads to economic growth is an interpretation of the residual in endogenous growth theory and as such is hotly debated in academic economics. An alternate description posited by Israel Kirzner suggests that the majority of innovations may be much more incremental improvements such as the replacement of paper with plastic in the construction of a drinking straw. For Schumpeter, entrepreneurship resulted in new industries but also in new combinations of currently existing inputs. Schumpeter's initial example of this was the combination of a steam engine and then current wagon making technologies to produce the horseless carriage. In this case the innovation, the car, was transformational but did not require the development of a new technology, merely the application of existing technologies in a novel manner. It did not immediately replace the horsedrawn carriage, but in time, incremental improvements which reduced the cost and improved the technology led to the complete practical replacement of beast drawn vehicles in modern transportation. Despite Schumpeter's early 20th-century contributions, traditional microeconomic theory did not formally consider the entrepreneur in its theoretical frameworks (instead assuming that resources would find each other through a price system). In this treatment the entrepreneur was an implied but unspecified actor, but it is consistent with the concept of the entrepreneur being the agent of x-efficiency. Different scholars have described entrepreneurs as, among other things, bearing risk. For Schumpeter, the entrepreneur did not bear risk: the capitalist did.

Some notable persons and their works in entrepreneurship history

For Frank H. Knight (1921) and Peter Drucker (1970) entrepreneurship is about taking risk. The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea, spending much time as well ascapital on an uncertain venture. Knight classified three types of uncertainty.

Risk, which is measurable statistically (such as the probability of drawing a red color ball from a jar containing 5 red balls and 5 white balls). Ambiguity, which is hard to measure statistically (such as the probability of drawing a red ball from a jar containing 5 red balls but with an unknown number of white balls). True Uncertainty or Knightian Uncertainty, which is impossible to estimate or predict statistically (such as the probability of drawing a red ball from a jar whose number of red balls is unknown as well as the number of other colored balls).

The acts of entrepreneurship are often associated with true uncertainty, particularly when it involves bringing something really novel to the world, whose market never exists. However, even if a market already exists, there is no guarantee that a market exists for a particular new player in the cola category. The place of the disharmony-creating and idiosyncratic entrepreneur in traditional

economic theory (which describes many efficiency-based ratios assuming uniform outputs) presents theoretic quandaries. William Baumol has added greatly to this area of economic theory and was recently honored for it at the 2006 annual meeting of the American Economic Association. The entrepreneur is widely regarded as an integral player in the business culture of American life, and particularly as an engine for job creation and economic growth. Robert Sobel published The Entrepreneurs: Explorations Within the American Business Tradition in 1974. Zoltan Acs and David Audretsch have produced an edited volume surveying Entrepreneurship as an academic field of research, and more than a hundred scholars around the world track entrepreneurial activity, policy and social influences as part of the Global Entrepreneurship Monitor (GEM) and its associated reports.

Ministry of Micro, Small and Medium Enterprises

The Ministry of Micro, Small and Medium Enterprises , a branch of the Government of India, is the apex body for the formulation and administration of rules, regulations and laws relating to micro, small and medium enterprises in India. As of November 2009, the head of the ministry is the Cabinet Minister Virbhadra Singh. HISTORY:The President of India amended the Government of India (Allocation of Business) Rules, 1961, under the notification dated 9 May 2007. Pursuant to this amendment, the Ministry of Agro and Rural Industries (India) and the Ministry of Small Scale Industries (India) were merged into a single ministry, the Ministry of Micro, Small and Medium Enterprises.


Coir Board Khadi and Village Industries Commission (KVIC) National Commission for Enterprises in the Unorganized Sector National Small Industries Corporation Ltd. National Institute of Micro, Small and Medium Enterprises National Institute for Entrepreneurship & Small Business Development Indian Institute of Entrepreneurship

Micro-enterprise A micro-enterprise is one where the investment in plant and machinery (their original cost excluding land, building and items specified by the Ministry of Small Scale Industries in its notification No. S.O. 1722(E) dated October 5, 2006) does not exceed Rs.25 lakh. Small enterprise A small enterprise is one where the investment in plant and machinery (see above) is more than Rs.25 lakh but does not exceed Rs.5 crore.

Medium enterprise A medium enterprise is one where the investment in plant and machinery (see above) is more than Rs.5 crore but does not exceed Rs.10 crore. The definition of MSMEs in the service sector is:

Micro-enterprise: Investment in equipment does not exceed Rs.10 lakh Small enterprise: Investment in equipment is more than Rs.10 lakh but does not exceed Rs.2 crore Medium enterprise: Investment in equipment is more than Rs.2 crore

The Indian micro- and small-enterprises (MSEs) sector plays a pivotal role in the country's industrial economy. It is estimated that in value, the sector accounts for about 39 percent of manufacturing output and about 33 percent of total exports. In recent years, the MSE sector has consistently registered a higher growth rate than the overall industrial sector. The major advantage of the MSE sector is its employment potential at a low capital cost. According to available statistics, the sector employs an estimated 31 million people in 12.8 million enterprises; labor intensity in the MSE sector is estimated to be nearly four times that of large enterprises




A project report on feasibility study on setting up a mixed fruit jam unit in Tripura.

NATURE OF THE GOODS/SERVICES TO BE MANUFACTURED OR PROVIDED:The initial produce planned is Apple, Orange, and Guava, Mango fruit jam. Later on more jam of more fruits and/or fruit blends can be added. The rated plant capacity is 30 kgs of jam per day. The main raw materials required are fruit pulp, treated water, sugar, citric acid, fruit flavors and preservatives all of which are readily available. The project will employ at least 33 personnel directly besides creating numerous job opportunities both on farm and off farm in the local areas. The estimated project completion time is 12 months both for the civil works and installation of the manufacturing plant itself. To setup a plant for the manufacture of fruit jam from fruit pulp, the factory will purchase fruit pulp which will be processed into jam and packaged in 500gm containers for sale in local, regional and national markets. Fruit jams are produced and consumed for their tasty character and nutritional qualities. With increasing trend toward healthy and natural food and beverage products and the especial appreciation of fruits both locally and nationally as well as this project has a ready market for quality fruit jams.

WHY YOU HAVE SELECTED THIS PROJECT:The reason why I have selected this project is as in our state there is less number of fruit processing unit, as a result of which Tripura has to earn a lot of fruit jams from our neighboring country Bangladesh. My question is when we ourselves can build up such fruit processing unit then why we should depend on others. If this goes on then our state will be too much dependent on others. So as to reduce that amount of import or too much dependency I have selected this topic. Moreover there is a huge scope of earning profit by setting up such processing units. Various Govt. schemes & benefits are also available. It will also create a lot of employment opportunity. Last but no the least, I wanted to start my career as an entrepreneur.

FINANCIAL INVOLVEMENT:List of Machineries and Equipments:Sl. 1. 2.. 3. 4. 5. 6. Description

jam making machine from fruit Oven Aluminum plate

No. 02 02 08 01 01

Rate 15,000 6,000 1,250 8,000 10,000 LS

Value 30,000 12,000 10,000 8,000 10,000 6,000 Rs 76,000

Refractometer Mixture Machine Small tools and implements TOTAL :

SALARY & WAGES :Sl no. 1. 2. 3. Post Supervisor Skilled Worker Helper TOTAL : No 1 2 2 Rate 4,000 3,000 Amount Self 8,000 6,000 Rs 14,000

1 2 3 4 5 6 7

Electricity / Fuel Cost Repair & Maintenance Conveyance / Transport Cost Tax & Insurance Packaging Materials ( Labels, Bottle etc. ) Telephone Charges Office Expenses & Misc. Cost TOTAL :

2,000 500 500 400 3,500 600 500 Rs 8,000

Description TO COST OF


Sl 1.


Quantity(Unit) Rate(Rs)


Recurring Expenditure 208000 Dep. On M/c & Tools @10% p.a Dep. On Furniture @5% p.a Interest on Loan Amount @12% p.a

Different 400 kg types of quality of food processing items

57 per kg




Gross Profit 15486


Rs 2,28,000

Rs 2,28,000

Return on Investment = Profit X 12 x 100 / Total Capital Investment = 15,486.00 x 12 x 100 / 5,12,000.00 = 1,85,832 / 5,120 = 36.2% (approx.) B.E.P = 44.49%

MARKETING STRATEGY:A typical distribution setup in fruit jam business involves the following hierarchy starting from the manufacturer to the consumer.


Designated Wholeseller

Distribution Agents

Manufacturers Own Field Force

RETAILERS 1. Departmental stores 2. Town shops. 3. Supermarkets 4. Staple food stores. 5. Hotels

The distribution and retail margin is around 15% to 20% for the fruit jam industry which is relatively higher than the other consumer goods due to the strong competition.

PRODUCT MANUFACTURING PROCESS:Fruit jam production procedures involved in fruit jam manufacturing depend on what type of the jam the unit is going to make. For the purpose of this study, we propose the 4% token jam from Citrus fruit (Orange), Apple, Mango and Guava.

Fruit Jam - Production Process Flow:Preparation process of jams involves the following steps:Boiling of fruit pulp

Pulp Storage in Tank

Sugar Hopper

Pulp and ingredients mixing

Syrup Storage in Tank

Jam Preparation

Jam Storage Tank

Filling and Packaging

Cooling and Storage

POTENTIAL SCOPE FOR FURTHER GROWTH & DEVELOPMENT:In Tripura there is a great scope for further development of this fruit processing unit, as in Tripura there is less number of fruit processing units. Moreover as per the survey the demand for fruit jams in Tripura is very high. So the chances of earning profit are also high here. Moreover fruit processing industry comes under thirst sector, so it will receive all the Govt. schemes & benefits. So it shows that the future of such fruit processing unit is very bright.

>Research methodology >Problem & research objective >Research plan >Data source >Research approaches >Research instrument >Contact method

Research methodology is one of the most important part in the survey to collect information & knowledge. Marketing research is defined as the as the systematic design, collection, reporting & analysis of data & findings relevant to a specific market situation facing the company.


My main objective was to find out how much the people are habituated to fruit jams, their likes & dislikes about fruit jams. The main problem was how to find out the cancellation of batches, exam attendance, exam pass out ratio etc. To get all these information a through planning had to be done, so I first started with designing the questionnaire for the clients whom I was going to target & know about their needs. The main things to be known from the clients are:Why batches getting cancel? Exam attendance Exam pass out ratio Involvement of insurance advisors Lack of communication skills.

The research process depends upon designing the most efficient plan for gathering the needed information. Developing a research plan calls for decisions on the data sources, research approaches, research instruments, sampling plan & contact methods. My objective was to find out how much the people of Tripura are habituated to all these fruit jams, what do they like about it & the dislikes, any new variant they want or not. The objective had made my project so narrow because from now onward my task will be find out the what people demands, & from that I can proceed freely.

For this project both primary & secondary sources of data were most valuable for collecting information.

Primary data are the data freshly gathered for a specific purpose. The various sources of primary data collection for my survey are people of all ages in this state.

Secondary data provide a starting point for research & offer the valuable sources of information. The secondary data was the most important source of my project because my first aim was to find out the top 5 people from every segment of industries so for the reason I started collecting the directory which which can help in finding out the desired information.

From above mentioned two sources of data collection primary data collection is easy to continue, as the data collection through this method is very less costly & easily available from the organizations. And I started collecting information from the various sources, because at the starting point of the survey this information play a important part for me & this help me to short out the people which I can meet with them to collect information about them or who are my target people. After collecting primary data or information from the primary sources then I started collecting the information from the secondary sources to narrow down my research. There are basically five ways to collect data.

This method is the most appropriate way to collect data. And Ive used this method in my survey to find out how much the people of this state are habituated to fruit jams.

This method includes the observation of people towards their approach to fruit jams.FOCUS GROUP RESEARCH

In this method I have segmented age wise to collect their feed back, this will help me a lot while producing as I know which group of customer demands what.

There are various ways of research instrument of collecting primary data, the various methods are Questionnaires Psychological tools Mechanical devices Qualitative measures

After collecting the entire data & deciding on the research approach & instruments, now I had to decide on the sampling plan which was one of the important task , because from now on the bunch of people I had to select only those people , whom I can target from now onward. The ways of sorting data are Sampling unit: Who is to be surveyed? & now my task was to define the target population, which will be sampled from the number of people. Sampling size: Large sample give more reliable results than small samples, but as the time constraints Ive selected 50 samples to whom I should focus.

Once the client had been decided now my task is how to contact them, and for me there is 3 ways. Among them I have chosen Questionnaire method. This is a very useful method of collecting information. It has the benefits of both telephone & personal interview methods.


1) How often do you buy fruit jams? Here I discovered that most of the people by fruit jams at an interval of 2-3 days or weekly.
15 DAYS 2%




2-3 DAYS 74%

2) Have you heard about any other fruit processing unit in Tripura? Here I discovered a mixed response. It is shown with the help of following diagram.


23 27


3) What type of fruit jams you prefer specially? The result that Ive got is shown with the help of following diagram.


OTHER GUAVA Series1 ORANGE MANGO 0 5 10 15 20 25

4) What is your monthly expense on fruit jams? The data that I have got is shown below.


500+ 27%

200-300 19%

350-500 50%

5) Any further suggestion. (If any). Fruit jams should be healthy & it should not contain any harmful chemicals, sugar free fruit jams should also be made available for the diabetic patients, price should be reasonable, value for money etc.

Present day is not free from limitation. It suffers from all the limitations which a short term study supposed to have such as; Money constraint is another problem faced by me while working on the project report as I am still a student & do not have any job with me, so I have to depend on others for fundings. Weather constraint is another problem that I faced while continuing my study. As weather is uncertain & no one has control over nature, so I have to work avoiding scorching sun heat, cold & rain. It also has been seen that some of the respondents were no willing to fill up the questionnaire form. They always tried to avoid this thing by making some excuses every time. Out of he number of peoples or prospective I have selected only 50 of them. As the time allotted for the survey was very less, so it was not possible to collect feedback from them all. So my survey is limited to those 50 peoples, what they feel, say think etc. So chance of biased result may be there. As the sample I have chosen is giving the same response, where as I would have gone for the total coverage or more time was available with me then I could get more fruitful results.

SWOT ANALYSIS: Threats. It stands for Strength, Weakness, Opportunities &

Strength:- The biggest strength of the project is the Govt help & support. Govt has spread its assistance for setting up such units. So it will receive all the benefits it deserves for its growth & expansion.

Weakness:- As I am starting this venture for the first time so I might face some problems of like lack of experience. Although I have theoretical knowledge of entrepreneurship, but practical knowledge helps a great deal.

Opportunities:- As I am setting up this unit for the first time, so if people comes to me to consume my fruit jam products so with that I can win mind of many customers by providing them good quality fruit jams & their value for money. If the peoples are satisfied they will pass this message to other & it will act as a god word of mouth.

Threats:- The biggest threat is the existing fruit processing units in Tripura.

FINDINGS: The findings that I have discovered while carrying out my project work are as follows. Most of the people buy fruit jams at an interval of 2-3 days. Maximum numbers of people are aware of other fruit processing unit in Tripura. Most of the people prefer orange & mango fruit jams. Their monthly expense on fruit jams is Rs 350-500. Fruit jams should be healthy & it should not contain any harmful chemicals. Prices should be reasonable & it must provide customers value for money. Sugar free fruit jams should also be made available. The demand for fruit jams is high during the season of summer.

RECOMMENDATIONS:Now as per my topics perspective thed jam mix fruit processing unit that I have decided to open up will help a great deal to reduce the amount of import of fruit jams from our neighboring country Bangladesh. As we know Tripura imports a lot of fruit jams from Bangladesh, so I hope my initiative will reduce that amount of import & increase in the level of our national income. There is a bright prospect if one starts his or her career as entrepreneur. They will get maximum benefit from Govt. As this initiative will create chance for employment & ultimately help in reducing unemployment problem from the country. So the Govt. is helping the existing entrepreneurs & the prospective entrepreneurs with both hands. Some of the organizations which help the entrepreneurs are; NABARD, SIDBI, SIDO, KVIC, NISIET & many more. Govt. is also helping the entrepreneurs to sharpen their skills by various training & development programmes exclusively meant for entrepreneurs. This training & development programme helped a great deal for the entrepreneurs. So people are also very much interested to start their career as entrepreneur & serve the nation.



Telephone directory

Entrepreneurial Development. By, Dr. S.S. Khanka Research Methodology. By, C.R. Kothari News papers


Dear Sir/Madam, I am a student of M.B.A. under Department Of Management, Tripura University conducting a project report on FRUIT PROCESSING UNIT IN TRIPURA. The data collected hereby strictly used only for educational purpose. I shall fill honoured if you answer the following questions. Name: Address: Occupation: Gender:

1) How often do you buy fruit jams? A) Daily. B) At interval of 2-3 days. C) Weekly. D) Every 15 days. 2) Have you heard about any other fruit processing unit in Tripura? A) Yes. B) No. 3) What type of fruit jams you prefer specially? A) Mango. B) Orange. C) Guava. D) Any other. 4) What is your monthly expense on fruit jams? A) 100-150. B) 200-300. C) 350-500. D) 500+ 5) Any further suggestion. (If any).

Thank you