E.D.

P PROJECT
Manufacturing of Fish /Prawn Pickle
Introduction :Fish or Prawns have very limited shelf life and they need to
be processed immediately to preserve them for a longer
period. Making pickle is made properly under hygienic
conditions adding requisite quantity of salt, spices and
preservatives would have shelf have shelf life of around 8 to
10 month. Pickles can be made in any part of the country.
This note concentrates on the North East region as It has
ample varieties of fish and non-vegetarian food is fairly
popular in most of the states. Manufacturing process is not
very complicated and the capital investment is not much.
Hence a new entrant would not find it difficult to venture
into this product line.
Pickling is also known as brining or corning, is the process
of preserving food by anaerobic fermentation in bring to
produce lactic acid, or marinating and strong it an acid
solution, usually vinegar (acetic acids). The resulting food
is called a pickle. This procedure gives the food a salty or
sour taste. In south Asia, Edible oil is used as the pickling
medium with vinegar.
Another distinguish characteristic is a PH less than 4.6
which is sufficient to kill most bacteria. Pickling can
preserve perishable foods for months. Antimicrobial herbs
& spices, such as mustarded seed, garlic, cinnamon or
cloves, are often added. If the food contains sufficient
moisture pickling brine may be produced by simply adding
dry salt. For example, saverkraout and Karean Kinchi are
produced by salting the vegetables to draw out excess
water. Natural fermentation at room temperature, by lactic
acid bacteria, produces the required acidity. Other pickles
are made by placing vegetables in vinegar unlike the

canning process; Pickling does not required that the food

be completely sterile before it is sealed. The acidity or
salinity of the salt. The temperature of fermentation and
the exclusion of oxygen determine which micro-organisms
dominate and determine the flowers of the end product.
When both salt concentration & temperature are law ,
Leuconostoc

mesenteries dominates, producing a mix

acids, alcohol & aroma compounds at higher temperature

lactobacillus platinum dominates which produces primarily
acid i.e. lactic

acid. Many pickle start with leuconastoc,

and change to Lactobacillus with higher acidity.

Like any other vegetable or fruit, fish pickle is also table
enriches

and

is

becoming

popular

amongst

non-

vegetarians. With additional of salt, spices & preservatives

its shelf like is generally 8 to 10 months. Certification
under the PFA Act is mandatory. (1954)
Market Outline :Pickles have become an important ingredient of the Indian
diet and they are prepared from fruits & vegetables across
the country. They are table enriches and are consumed
along with main course as well as many snacks. Pickle
made from fish or prawn would also fall in the same
category but its consumption would be limited only to nonvegetarian. The defense purchase department of the
government of India also requires a sizeable quantity of
processed fish product for supplying to the various
departments canteens and offices mess Establishment.
There is a good demand for fish / Prawns pickle in foreign
countries also.
Basis and Presumptions :1. No. of shifts working
2. No. of days working in a year

Two (Morning, Afternoon)

300 days

3. Margin money
4. labour and wages

30 %
As per the prevailing
rates in the area

Marketing Strategy :There are very few notional brands and bulk of the market
is controlled by the local manufactures. Demands for ready
to sewe fish products are increasing in the North-East.
Apart from individual households, hostels, restaurants,
roadside eateries, canteens, etc. are bulk consumers...
Proper placement of products, attractive point of sale
publicity and handsome commission to retailers shall be
the critical aspects.
Manufacturing Process :Fresh prawns are peeled are washed and then blenched in
6 % salt solution containing 0.02% citric acid at cooled
cleaned fresh garlic and green chilies are cut longitudinally
where as fresh lemons are cut into 8-10 pieces. Asafetida
is ground and mixed with water or vinegar. Then edible oil
is heated to around 200o c and mustard is fried into it
subsequently, garlic, green chilies & lemon pieces are
mixed with oil one after another and are stirred. Then salt
ginger pieces and asafetida solution is mixed. Finally

vinegar is added and when there is a separation of liquid

portion blanched prawns and mixed well. After heating the
mixture at 100o c for about 3 minutes it is cooled down to
around 60o and then preservatives are mixed with salt,
chili powder and turmeric for about & hours. Then pieces
are fried in edible oil till they are brown in colour. Likewise,
onion, garlic and ginger is ground in paste form and then
fried till it becomes light brown. Then vinegar is added
along with salt, chili & turmeric powder to the mixture and
it is heated till vinegar is absorbed in fish. Then it is cooled
and ground spices and preservative are mixed and fish
pickle is packed in air tight bottles. Weight loss on
cleaning in air tight bottles weight loss on cleaning etc.
shall

be

50-55%

which

will

be,

to

some

extent,

compensated by addition of other ingredients. Hence, net

yield would be 65%.
Financial Analysis :1. Land and Building
Sr. No.
1.
2.

Particular
Land (100 Sq.fts)
Building
Total

Amount
10,00,000
5,00,000
15,00,000

2. Equipments :
Sr. No
1
2
3

Particulars
Fermentation container
Plastic buckets
Clay fermenting crocks

Rates
50,000
200
400

Quantity
3
20
20

Amount
1,50,000
4000
8000

4
5
6
7
8

Weights
Glass Jars
Packing Machine
Bottle washing machine
SS knives

200
300
3,00,000
250000
300

20
20
1
1
15

4000
6000
3,00,000
250000
4500
7,26,500

 Other Fixed Assets :Sr. No

1
2
3
4
5

Particulars
Furniture
Electric items
Computer
Telephone
Generator

Qty

Rates
20000
10000
30000
200
60000

2
2
1

Amount
20000
10000
60000
400
60000
150400

Total
Raw Material :Sr.

Qty.

Qty.

Rate

Monthly

No.

daily

Monthly

(Rs.)

(Rs.)

(kg/lit)
50 kg

(kg/lit)
1500 kg

1200

180000

10
20
40
40
160
450
200
80
120
150
10
90

0
22500
6000
6000
1800
120
675
450
360
90
225
600
27000

2
3
4
5
6
7
8
9
10
11
12
13

Particular

Fish fillet
Onion
Garlic
Ginger
Green Chilies
Turmeric
Pepper powder
Chili powder
Coriander Powder
Fenugreek powder
White wine vinegar
Salt
Edible oil
Total

75 kg
10 kg
5 kg
1.5 kg
25 gm
50gm
75 gms
150gms
25 gms
50 lit
2 kg
10 lits.

2250 kg
300 kg
150 kg
45 kg
750 gms
1.5 kg
2.25 kg
4.5 kgms
750 gms
1.5 lits
60kg
300 lits.

Legal Aspects :Permission from

M.I.D.C Pimpri Chinchwad & Mahanagar Palika.

Yearly (Rs.)

21600000
270000
72000
72000
21600
1440
8100
540
4320
1080
2700
7200
324000
2,23,8,9840

 Utility :Sr. No.

Particular
1
Water
2
Electricity
3
Telephone

Amount (Monthly)
3000
4000
1000

Amount (Yearly)
36000
48000
12000
96000

Working Capital :a) Project annual sale :=

100 kg

daily

250gm = 40bottles 1kg = 30 Bottle 5kg = 10 bottles 500 gms 20 bottle

2502 gms = 250 Rs 1kg = 950Rs.
5kg =4750Rs.
500 gm = 500Rs.
10,000 + 28,500
+
47,500
+
10,000
Total amt. daily
Total amt. monthly
Total amt. yearly

=
=
=

Gross working capital

PAS =
34560000
Gross working capital =
=

96000
(daily)
2880000 (monthly)
34560000 (yearly).

34560000
8640000 Rs.

1/5 of gross working capital =

8640000
5

Net working capital

1728000 Rs.

Project Cost :Sr. No.

1
2
3
4

Particular
Land & Building
Plant & Machinery
Other Assets
Preliminary pre-operation expenses.

Amount (Rs.)
1500000
726500
150400
125000

5
6

Margi nary expenses (Margin Money)

Contingencies expenses

1728000
30000
4259900

Means of Finance :Sr. No.

1
2

Particular
Promoters Contribution
Term Loan
Total

Amount (Rs.)
1703960
2555940
4259900

Man Power Required :Sr. No.

1
2
3
4
5

Particular
Accountant
Cook
Store Manager
H.K
Security

No.

Monthly

1
2
1
3
2

salary
4000
14000
4000
9000
400

Amt. yearly
salary
48000
168000
48000
108000
48000
4,20,000

Production Profitability : Sales per Annum =

Cost of production =
Sr. No
1
2
3
4
5
6

34560000/22920840/-

Particular
Raw Material
Utility
Rent
Salary
Overhead exp.
Consumable and packing

Profit Before Tax :-

Amount
22389840
96000
420000
5000
10000
22920840

a) Depreciation Tax

(A - B)
= 34560000
=11639160 Rs.

b) Profit

22920840

=Interest +
Depreciation
=334087 +
332766
=666853
=11639160 666853
=10972307
=10972307 3620861
=7351445

Net Profit

Net Profit

7351445/-

Trading Account :Particular

To, Purchase
To utilities
To overheads
To consumable & packing
To, gross profit
Total

Amount
Particular
22389840 By sales
96000
By closing stock
5000
10000
12159160
34660000

Amount
34560000
100000

3466000
0

Profit & loss Account

Particular
To, salary
To, depreciation
Land & building
Plant & Machinery
Other fixed assets
To interest
To pre-operating expenses
To net profit
To, contingencies expenses.

Amount
420000
150000
72650
15040
334087
125000
7351445
30000

Particular
By gross profit

Amount
12159160

To, advertisement
Total

3660938
12159160

1215916
0

 Balance Sheet :Liabilities

Capital
(+) net

Amount
1703960
7351445

Amount

profit
9055405
Bank Loan
(-) Principle

2555940
713667
1842273

Assets

Amount

Land &

1500000

building
(-) dep.

150000

Plant &

726500

machinery
(-) dep.

72650

Other fixed
Assets
(-) dep.

Amount

1350000

653850

150400
15040

135360

Debtors

1000000

Cash in hand

3000000

Bills

758468

receivable
Cash in bank
Total

10897678

4000000
10897678

Trading Account
Particular
To, opening stock
To, Purchase

Amount
100000
22389840

Particular
Amount
By sales
41472000
By closing 150000
stock

To Utility
To, Overhead
To, consumable & packing
To gross profit

96000
5000
10000
19021160
4,16,22,000

4,16,22,000

 Profit and Loss Account

Particular

Amount
420000

To, salary

Particular
By gross

Amount
19021160

profit
To Depreciation
Land & Building
Plant & Machinery
Other fixed assets

135000
65385
13536

To interest
To, pre-operating expenses
To contingencies exp.
To advertisement

334087
125000
30000
10546707

To net profit

7351445
1,90,21,160

1,90,21,160

Balance Sheet
Liabilities Amount
Capital
9055405
(+) net

Amount

Assets
Land &

Amount
1350000

building
(-) dep.

135000

1842273

Plant &

653850

713667

machinery
(-) dep.

65385

Other fixed

135360

assets
(-) dep.
Debtors

13536

7351445

Amount

1215000

profit
16406850
Bank
loans
(-)

588465

principle
Creditors

1128606
50000

121824
5560167

Bills

1000000

receivable
Closing stock
Cash in hand
Cash in bank
Total

1,75,85,456

100000
2000000
7000000
1,75,85,456

Trading Account
Particular
To opening stock
To purchase
To utility
To overhead
To consumable & packing
To, gross profit
Total

Amount
Particular
150000
By sales
22389840
By closing stock
96000
5000
10000
27165560
49816400

Amount
49766400
50000

Particular
To salary

Amount
420000

Amount
27165560

To depreciation
Land & building
Plant & machinery
Other fixed assets

121500
58846
12182

To interest

334087

To, pre-operating exps.

125000

To, net profit

7351445

49816400

Profit & loss Account

Particular
By gross profit

To, contingencies exp.

30000

To, advertisement

18712500
Total

27165560

27165560

 Balance Sheet :Liabilities

Capital
(-)net profit

Amount

Amount

Assets

16906850

Land

7351445

(-) dep.
(-) dep.

Amount

Amount

building 1215000
121500

1093500

23758295
Bank loan

1128606

Plant
machinery
(-) dep.

(-) principle 713667

Creditors

& 588465

414939
50000

Other fixed
Assets
(-) dep.

58845

529619

121824
12182

109642

Debtors
Bills receivable

Total

3000000
2340473

Closing stock

150000

Cash in hand

2000000

Cash in hand

15000000

24223234

24223234