TOMATO PRODUCTS

1.0 INTRODUCTION

Tomato products such as puree and ketchup are commonly-used commodities in households, hotels and restaurants. Demand for these items used to enhance the taste of food products will continue to increase with the boom in the food sector especially fast food chains. Mauritius imported tomato-based products worth Rs 30m in 2007. With high fluctuations of market prices of fresh tomatoes, huge scope exists for the production of tomato-based products such as puree and ketchup. 2.0 MARKET

Targetted clients are mainly shops, hotels, restaurants and distributors of food products. Consumption of tomato-based products will continue to increase locally due to the increasing standard of living and shortage of fresh tomatoes resulting from adverse climatic conditions. Besides, export prospects also exist in the IOC/SADC and COMESA regions. 3.0 MACHINERY AND EQUIPMENT

Machinery and equipment required in the production process comprise steam boiler, washing machine (rotary and washer), tilting seam jacketed kettle of cap, pulper cap, pasteuriser tank, vaccum filling machine, bottle washing machine, crown cork machine, scales, tables, tanks, buckets, etc. which could be sourced locally or imported from India. 4.0 THE PRODUCTION PROCESS Tomato Puree Fully ripe tomatoes are washed, trimmed, steamed, crushed cut into pieces with knives. The crushed pieces are heated in the steam jacketed kettle till they become quite soften. The heated tomatoes are passed through the pulping machine using a fine mesh sieve to separate juice from seeds and the skin. Sugar and salt @ 1% is added and heated to 85-90 0C. The hot juice obtained is concentrated under vacuum to about 9% to 12% total solids so as to get tomato puree. The product is filled in bottles, crown corked and processed in boiling water for 30 min. and cooled. Tomato Ketchup The hot juice obtained as above is concentrated with spices, salt, sugar, etc. Spices like cloves, cardamom, pepper, cinnamon and other ingredients etc. are tied loosely in a muslin cloth and placed in boiling juice in steam Jacketted Kettle. The final product could be preserved by addition of sodium benzoate @ 750 ppm. The tomato ketchup is filled hot into clean, dry bottles, crown corked and processed in boiling water for 30 minutes and cooled at room temperature.

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ESTIMATED COST OF THE PROJECT Machinery & Equipment 1 Steam Boiler 1 Washing machine (Rotary & washer) 1 Tilting seam jacketed kettle of cup 1 vacuum filling machine Pulper cap Pasteuriser tank Bottle washing machine Crown cork machine Scales Tanks/Buckets/Knives, etc. Tables/Chairs Total Pre-Operational Expenses Working Capital Total Rs 80,000 60,000 50,000 20,000 30,000 20,000 15,000 5,000 5,000 20,000 15,000 --------320,000 --------15,000 79,000 --------414,000 ======

6.0

FINANCIAL STRUCTURE The cost of the project could be financed through: Rs Promoters Capital (25%) DBM Quasi-Equity Loans (75%) Total 103,500 310,500 ---------414,000 ======

7.0

FINANCIAL ANALYSIS

With a forecasted turnover of Rs 1,140,000 from the sale of tomato based products like puree and ketchup during the first year of operation and total expenditures estimated at Rs 1,049,760 during the same period, a net profit (before tax) of Rs 90,240 is expected to be realised in the 1 st year. This represents a rate of return of 21.7% on investment. 8.0 QUALITY CONTROL AND TRAINING

MSB provides guidance and training on all quality related norms. AREU offers training on the technical aspects SEHDA conducts training courses on management practices viz bookkeeping, cash flow etc.

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IMPLEMENTATION SCHEDULE

Project implementation will take a period of 2 months. A break up of the activities and estimated relative time for each activity is shown below: Time Frame

Business registration at the Registrar of Business Registration at SEHDA Approval/Permits for a BL.P (if necessary) at the Municipality / District Council Preparation/Approval of Business Plan Sanction of financial support Commissioning and installation of machinery Trial run and production SUPPLIERS OF EQUIPMENTS/INGREDIENTS 1. M/s. B.Sen Berry and Co. 65/11, New Rohtak Road Karol Bagh New Delhi-110005. India M/s. Eastend Engineering Co. 173/1, Gopal Lai Thakur Road Kolkata-700 035. India Phone Nos. 577-3416, 577-6324 M/s. Jyothy Industries No. 31, Pampamahakavi Road, Bangalore-560 004. India Ph. Nos.: 6679697 (O). 6677852 (R) M/s. Hyderabad Tulaman Limited 9-1-87, Sarojini Devi Road Secunderabed-500025. India Local Dealers / Farmers

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1 Day 1 Day 3-15 days 1 week 1 month 2 weeks 1 week

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ESTIMATED PROFIT & LOSS A/C FOR THE 1ST YEAR OF OPERATION Rs Total Revenue projected from the sale of tomato based products Less Direct Expenditures on purchase of ingredients Such as tomatoes, spices, plastic bottles, etc. Gross Profit Overheads Rent (Rs 2000 monthly) Salaries (3 employees at Rs 5,000) License Fees Telephone/Water/Electricity (Rs1000 monthly) Depreciation (15%) Bank charges (12%) Miscellaneous Expenses including NPF Contribution, travelling costs, etc (Rs 1000 monthly) Total Net Profits before tax 24,000 195,000 1,500 12,000 48,000 37,260 12,000 -----------329,760 -----------90,240 ----------1,140,000 720,000 ------------420,000 -------------

PROJECTED PRODUCTION COSTS ON A MONTHLY BASIS Tomato-based Products Puree and Ketchup Ingredients for Production of 5,000 bottles Rs 10,000 lbs tomatoes at Rs 5 per lb Sugar /salt/spices and other ingredients 5000 plastic bottles/caps Total 50,000 4,000 6,000 --------60,000 ---------

Forecasted Revenue from the Sale of Tomato-based products on a monthly basis 4000 bottles of tomato puree at Rs 20 cash 1000 bottles of ketchup at Rs15 each Total 80,000 15,000 --------95,000 =====

Assumption: Raw tomatoes provide 50% of tomato juice after processing. NOTE: It is to be underlined that this project profile is meant to facilitate decision making by entrepreneurs at the time of identifying business ideas. The exercise is based on a number of assumptions which may vary from business to business. As such every attempt has been made to provide as far as possible correct information and figures. However, implementation of the project and the operation of the business will depend upon a number of factors, including, the skills of the entrepreneur, quality of products and marketing strategy. The authors do not bear responsibility for changes witnessed during the implementation and operation.