Entrepreneurship Development Project

Jam, Jelly & Pickles

Submitted By
Ketaki Mangesh Sawant
Batch A (01)
(2016- 2019)

Project Guide
Mrs. Poonam Bajaj

Project Submitted to
D Y Patil University,
School of Hospitality and Tourism Studies

Page | 1
 CERTIFICATE

This is to certify that Ketaki Mangesh Sawant of TY B.Sc Hospitality

Studies has satisfactorily completed her project work on Jam, Jelly &
Pickles. The project represents her work during the academic year –2018-
2019

Date –
Place
Faculty Incharge External Examiner

Director

Page | 2
 ACKNOWLEDGEMENT

I am indebted to D.Y. Patil University School of hospitality and Tourism

studies for giving me an excellent opportunity to carry out the present
research project. I would like to express my deep gratitude to Asst.
Professor Pooman Bajaj, my EDP supervisors, for her patient guidance,
enthusiastic encouragement and useful critiques of this research work. I
would also like to thank, for his advice and assistance in keeping my
progress on schedule.

My heart felt gratitude to Director Mrs. Vandana Mishra for her guidance
and valuable support and constructive recommendations on this project.
Finally, I wish to thank my parents for their support and encouragement
throughout my study.

Place :Navi Mumbai Signature of Student

Date :

Page | 3
 TABLE OF CONTENTS

Sr. No. Particulars Page no.

1. INTRODUCTION 5

2. MARKET POTENTIAL 8

3. MANUFACTURING PROCESS 10

4. COST OF LAND AND BUILDING 12

5. COST OF PLANT AND MANUFACTURING 13

6. RAW MATERIAL 14

7. UTILITY 15

8. PRE- ELIMINARY & PRE- OPERATIVE EXPENSES 16

9. OTHER FIXED ASSETS 17

10. BREAK EVEN ANALYSIS 18

11. PROJECT COST 19

12. MANPOWER REQUIREMENT & COST 20

13. MEANS OF FINANCE 21

14. DEPRECIATION SCHEDULE 22

15. REPAIR & MAINTENANCE COST 23

16. BALANCE SHEET 24

Page | 4
 INTRODUCTION

Northeastern region by virtue of its diverse agro-climatic conditions, varied soil type and
abundant rainfall has the promises of becoming an excellent sourcing point for high
value horticultural produce and value added products unique to the region for onward
marketing both within the country and abroad. There is ample scope for increasing the
area under such plantations. Most of the produces go waste during the production due
to lack of processing and storage facilities and inadequate infrastructural facilities.
There is great potential of processing these products and interactions with food
processing units in Northeastern region. By setting up of small scale food processing
industries, the result would be doubly beneficial: utilizing available produce thereby
avoiding wastage and running a viable unit. Fruits are an important source of energy for
human-beings but they are perishable items. Hence since many years various products
are made from juice of fruits so that they can be consumed during off season as well.
Products like jam, jelly, pickles etc. are made from fruits since long.

With the advent of technology and preservatives, shelf life of such products has gone up
and they can be preserved for many months with proper packing. With the fast growth
of the urban areas and the living standards of the Indian people growing higher, there is
a good potential to develop this industry in the small scale sector. Considering the
potential market opportunity of such units, the present detail project report has been
developed. The main objective of such initiative is to productively utilize the abundantly
available resources of the local area and to enable uninterrupted supply of the products
to market throughout the year.

Page | 5
In the days before
refrigeration, an entire growing season's worth of fruits and vegetables were preserved
for use throughout the winter. Cucumbers transformed to pickles, and tomatoes and
beans were canned. Fruits were mixed with sugar to create jams, and to give a taste of
summer to a bitterly cold February morning's breakfast. In 1869, Dr. Thomas Branwell
Welch used the Concord grape to launch his grape juice company. In 1918, Welch's
company made its first jam product, Grapelade.
Jelly contains gelatin, which is made from collagen which comes from animal bones and
skin. When the gelatin is heated and mixed with water the protein fibers unravel and
come apart, so the jelly from the packet melts. Pickles have been around for thousands
of years, dating as far back as 2030 BC when cucumbers from their native India were
pickled in the Tigris Valley. The word “pickle” comes from the Dutch pekel or northern
German pókel, meaning “salt” or “brine,” two very important components in the pickling
process.
Jam, Jelly and Pickles are important food products as they enhance palatability of food
due to its taste and flavour. They are prepared from fruits and they supplement the food
with vitamins and minerals. There are many types of pickles available in India. These
products have very good market potential as they are consumed in most of the
households, restaurants, other eateries, clubs, hostels etc. They are sold through many
outlets like grocery shops, departmental stores etc. But these products are very popular
in the North-East region of India and the consumption is increasing year after year.
Presently, there are limited numbers of small units producing these products in the
region and there is a wide gap between demand and supply which is met by the
manufacturers from outside the region. Quality should be emphasized at each step right
from the beginning to the marketing of the product. Over the years, an image of high
Page | 6
quality products should be cultivated. The effectiveness of distribution coverage and
practice is of paramount importance in achieving the desired fruit juice sales.
Understanding of the distribution channels is crucial in order for the manufacturer to
plan and implement an effective distribution strategy. Distribution network should be
given extra emphasis. Market share could be gained by enhancing retailer, and
distributor margins. Normally distribution and retailer margins in fruit juice business are
from 15 to 20%. The proposed business may utilise media such as broadcast,
newspapers and also social network platforms at certain interval of time to introduce the
products and also attract more customers. Placement of the product at strategic outlets
and publicity in local media would boost sales. It may also carry door to door services in
the initial years to introduce the product and attract more customers. Marketing plan of
the proposed project may include promotional campaign like offering special discounts,
referrals, advertisement, new product development, packaging innovations and tying up
with buying houses.
The key products of the proposed project are as follows;
 Jam

 Jelly

 Pickles.

The primary objective of the fruit juice processing is to preserve the perishable fruits in a
stable form that can be stored and supplied to local as well as distant markets round the
year. Processing also can change fruits into new or more usable forms and make fruits
more convenient to prepare. The use of fruits for the preparation of processed products
will not only reduce wastage of fruits during handling but also add nutrition and
palatability to the drink. The rapid increase in the production of these items in different
parts of the country is a proof of their rising popularity. The proposed project would
procure the raw materials locally. After processing, the products would be supplied to
the market through distributors/ wholesalers/retailers.

Page | 7
 MARKET POTENTIAL

It is estimated that the total production of processed fruit & vegetable in India is about
15.0 lakh tonne. Out of various products fruit juices and fruit pulp accounts for 27
percent, followed by ready-to-serve beverages and pickles being between 12 to 13
percent each, jams & jellies 10 percent and synthetics 8 percent. There are good
reasons to belive that the processed products of fruit & vegetable business will remain a
growth industry for a long time, one of the main reasons for expectation of growth is that
the consumption of mixed fruit jam/orange jam/jelly/marmalade/pickle is gaining
popularity day by day owing to the growing change in the food habits and increased
consumption of bread and other convenient snack foods. Among the established brand
in the jam/jelly segment, Druk, Kissan, Dipy’s tims and Sil are the prominent names and
in case of pickle production, Nilons/Arnapurna/priya are famous.
This report presents a comprehensive analysis of the global jam, jellies, and pickles
market by product (jams, jellies, and pickles), by distribution channel (hypermarkets and
supermarkets, convenience stores, independent stores, and others).
Increasing demand for natural and organic products is one the key trends spurring the
growth prospects of this market during the predicted period. The growing popularity of
natural products has also led to the farmers getting a higher price for their products if
their produce is certified organic. This type of farming allows for the use of advanced
ecological approaches to better manage fields and crops.
Moreover, organic farming is a safe method of farming as organic farming does not use
toxic chemicals and pesticides. This has led to many farmers shifting to organic farming.
Also, consumers perceive organic food products to provide better nutritional benefits
than non-organic food products, leading to this market’s growth in the coming years.
During 2017, the jams segment dominated the market and accounted for more than
52% of the market share in terms of revenue. The versatility of jams is enormous, and
many consumers and vendors are experimenting different flavors which will drive this
segment’s growth in the future.

Page | 8
The global jams, jellies, and preserves market is highly fragmented due the presence of
several international and regional players. The vendors compete in terms of product
differentiation, product pricing, quality, innovation, service, reputation, and distribution.
The competition in the market is expected to intensify because of an increase in the
number of retailers, introducing private-label organic food products, the acceptance of
organic food products by consumers and price wars among vendors. Therefore, to
survive and succeed in this competitive environment it is imperative for the vendors to
distinguish their product offerings through a unique value proposition.

Page | 9
 MANUFACTURING PROCESS

JAM

BOILING

MIXING OF SUGAR
WITH PULP

COOLING

PACKING

JELLY

WASHING & PEELING

OF FRUITS

ADD SUGAR IN JUICE

BOILING

COOLING & PACKING

Page | 10
 PICKLES

WASHING & SLICING OF

UNRIPE FRUITS &
VEGETABLES

CURING IN SALT

MIXING OF
INGREDIENTS

PACKING

Page | 11
 COST OF LAND AND BUILDING

Covered Area – 1,200 Square Feet

Particulars Area (Sqft) Rate (Rs) Amount (Rs)

Work Shed, Store 1200 450 540000
House cum Office
Sub total 540000
Add: Electrification, Water supply, Sanitation and Drainage @ 135000
25%
TOTAL 675000
Say (Rs. in lacs) 6.75

Page | 12
 COST OF PLANT AND MACHINERY

Particulars Quantity Amt

(Rs.)
Pulper Machine 1 415000
Slicing Machine 2
Juice Extractor 1
Steam Jacketed Kettle 1
Mixer/ Grinder 1
Bottle Washing & Filling Machine 1
Baby Boiler 1
Cap sealing Machine 1
Stirrers, SS Utensils, Burner, Weighing Scales, Hand gloves, 80000
LS
Miscellaneous Tools & Equipment
Testing Equipment LS 25000
Sub Total 520000
Add: Taxes, transportation and installation etc @ 10% 52000
Total 572000
Say (Rs. In Lacs) 5.72

Page | 13
 RAW MATERIAL
Items Product- Wise Quantity Rates (Rs) Amount per Annual
day Requirement
(Rs. In Lacs)

A. Jam & Jelly

1. Fruits 190 kg 25 per kg 4750.00 9.50
2. Sugar 210 kg 17 per kg 3570.00 7.14
3. Preservatives & LS -- 200.00 0.40
Others

B. Pickles
1. Fruits/ Vegetables 190 kg 25 per kg 4750.00 9.50

2. Common Salt, 210 kg 17 per kg 3570.00 7.14

Spices & Chemicals

3. Preservatives & LS -- 200.00 0.40

Others

Page | 14
SR. PARTICULAR AMOUNT
NO.

1 Light Bill RS.19,000

2 Water Bill RS.1,000

3 Gas RS.2,500

4 Internet Bill RS.500

5 Telephone RS.700

Total RS.23,700
UTILITY

Page | 15
 PRELIMINARY AND PRE-OPERATIVE EXPENSES
Particulars Amount (Rs. Lacs)

Travelling Expenses 25000

Non Refundable Deposit Professional Fees 67000

Interest during implementation 54621

Miscellaneous Expenses 49000

Total 195621

Say (Rs. In lacs) 1.96

Page | 16
Particulars Quantity Rate (Rs) Amount
(Rs)
Electrical Load Security & Transformer LS -- 95000

Furniture’s, Fixtures including Working Tables LS -- 72000

Miscellaneous Items Ls -- 48500

Subtotal 215500

Add: Taxes, transportation & installation, etc @10% 21550

Total 237050

Say (Rs. In Lacs) 2.37

OTHER FIXED ASSETS

Page | 17
 BREAK EVEN ANALYSIS

YEAR 1 YEAR 2 YEAR 3

Rs. In Lacs Rs. In Lacs Rs. In Lacs
A.Net Sales (Rs. In Lacs) 37.00 44.40 51.80
B. Variable cost
Raw Materials 22.80 27.36 31.92
Power & Utility 1.46 1.75 2.04
Other Expenses 0.37 0.44 0.52
Interest on Working Capital Loan 0.43 0.50 0.56
Total Variable Cost 25.06 30.05 35.04
C. Contribution (A-B) 11.94 14.35 16.76
D. Fixed and Semi- Fixed costs
Salary 9.96 10.01 10.06
Repair & Maintenance 0.23 0.23 0.24
Interest on Term Loan 0.90 0.82 0.64
Depreciation 0.84 0.84 0.84
Total Fixed Cost 11.93 11.90 11.78
E. BREAKEVEN POINT 99.93% 82.96% 70.28%
F. BEP at Operating capacity 49.97% 49.77% 49.20%
G. Cash BEP 46.44% 46.26% 45.68%

Page | 18
 PROJECT COST
Particulars Amount (Rs. In Lacs)

Land & Site Development Own Land / On Lease

Building & Civil works 6.75

Plant & Machinery 5.72

Misc. Fixed Assets 2.37

Preliminary & Pre-operative Expenses 1.96

Contingencies & Escalation @ 5% 0.74

Workking Capital 1.21

Total 18.75

Total Project Cost :Rs. 18, 75, 000.00

(Rupees Eighteen Lakhs and Seventy Five Thousand Only).

Page | 19
 MANPOWER REQUIREMENT & COST

The salaries and wages of different types of manpower is projected as follows:

Particulars of Employee Numbers Salary/ Cost/

Month (Rs) Annum (Rs)
Manager 1 12000 144000

Store In-charge cum Accountant 7000 84000

1

Marketing & Sales Personnel 7000 336000

4

Machine Operator/ Skilled Workers 6000 216000

3

Unskilled Workers 4 4500 216000

Expenses on Salary in the 1st Year (Rs) 996000

Increase of 0.50% has been considered every subsequent year.

Page | 20
 MEANS OF FINANCE
Particulars Percent Amount
(Rs. Lacs)

EQUITY

A. Equity from Promoters 40% 7.50

B. Subsidy from Central State Govt. --

DEBT

Term Loan from Banks/ FIs 60% 11.25

Total 100% 18.75

Total Project Cost :Rs. 18, 75, 000.00

(Rupees Eighteen Lakhs and Seventy Five Thousand Only).

Page | 21
 DEPRECIATION SCHEDULE

Description Cost (Rs. In Contingencies Total Rate Amount/

Lacs) annum
(Rs. In
Lacs)

Building &Civil 6.75 0.34 7.09 3.17% 0.22

Works

Plant & 5.72 0.29 6.01 6.33% 0.38

Machinery

Misc. Fixed 2.37 0.12 2.49 9.50% 0.24

Assets

Total 14.84 0.74 15.58 0.84

Page | 22
 REPAIR AND MAINTENANCE COST

Particulars Cost (Rs) Contingencies Total Rate Amount

(Rs. In
Lacs)

Building & Civil Works 6.75 0.34 7.09 1.00% 0.07

Plant & Machinery 5.72 0.29 6.01 2.00% 0.12

Misc. Fixed Assets 2.37 0.12 2.49 1.50% 0.04

Expenses on repair & 14.84 0.74 15.58 0.23

Maintenance in year 1

Page | 23
Particulars Impl. Period YEAR 1 YEAR 2 YEAR 3
LIABILITIES
Promoters Capital
Promoters Capital 7.50 7.50 7.50 7.50
Profit from P&L 0.01 2.45 7.43
Subtotal 7.50 7.51 9.95 14.93
Secured Loan
Term Loan 11.25 11.25 9.00 6.75
CC Limit from Banks 3.62 4.16 4.71
Subtotal 11.25 14.87 13.16 11.45
Unsecured Loan
Current Liabilities
Total of Liabilities 18.75 22.37 23.11 26.39

ASSETS
Gross Fixed Block 15.58 15.58 15.58 15.58
Subtotal (a) 15.58 15.58 15.58 15.58
Depreciation
Cum. Depreciation 0.84 1.68 2.52
Subtotal (b) 0.00 0.84 1.68 2.52
Net Fixed Asset Block (a-b) 15.58 14.74 13.90 13.06
Current Asset Block
W.I.P. (Inventories)
Cash & Bank Balance 1.21 1.04 2.10 5.68
Other Current Assets 4.83 5.55 6.28
Subtotal 1.21 5.87 7.65 11.96
Preliminary expenses not written 1.96 1.76 1.56 1.37
off
Total of Assets 18.75 22.37 23.11 26.39
BALANCE SHEET

Page | 24