PROJECT REPORT

On
HALWA and MILK KOVA MANUFACTURING
 Information
Name of the Project SRI VENKATESWARA TRADERS
Quality and Standards As per the industry standards
Month & Year of Preparation February -2020
Applicant Name and Address K LOKESH
Door No: 1-236
Gadduru Colony
Palamaner
Chittoor
Andhrapradesh-517408
+91-9444408075
INTRODUCTION
India has made lot of progress in agriculture & food sectors since independence in terms of
growth in output, yields and processing. It has gone through a green revolution, a white revolution, a
yellow revolution and a blue revolution. Today, India is the largest producer of milk, fruits, cashew
nuts, coconuts and tea in the world, the second largest producer of wheat, vegetables, sugar and fish
and the third largest producer of tobacco and rice.Now the time is to provide better food processing &
its marketing infrastructure for Indian industries to serve good quality & safest processed food like
ready to eat food. It is opening a new window in world scenario as far as taste & acceptance is
concerned. Therefore, Indian Government is providing more infrastructures for this sector. Excise duty
is now ZERO % on RTE and 100 % tax deduction for the first 10 years for new units. This allows
manufacturers to bring down their prices & spreads its flavors to the world.

The retort processed foods do not require rehydration or cooking and can be consumed
straight from the pouch with or without pre-warming, depending upon the requirement of the users
and the weather conditions. Some of the mouth-watering dishes in retort pouches include sooji halwa,
upma, chicken curry, mutton curry, fish curry, chicken madras, chicken kurma, rajma masala, palak
paneer, dal makhni, mutter paneer, potato-peas, mutter mushroom, vegetable pulav chicken pulav,
and mutton pulav, etc.The pioneer introduction of retorting technology has made the sale of ‘Ready-
to-Eat’ food products commercially viable with great taste. Ready To Eat, Shelf Stable, Retort Sterilized
Foods are completely cooked foods packed in airtight containers, which could be preserved at room
temperature for a long period of time without the necessity of freezing, cooling and drying.The
thermally-processed retort pouch foods are waterproof, weatherproof and bug proof. The Shelf Life of
Ready To Eat Foods is from 1 year to 5 years, depending on the type of packing materials and
processing procedures.

Ready to Eat Meals like already cooked or prepared lunch & dinner are relatively new products
which came in market only a few years back and are now sold through retail general stores in
especially made sealed aluminum laminates. The retorting or sterilization process ensures the stability
of the Ready-to-Eat foods in retort pouches, on the shelf and at room temperature. The application of
sterilization technology completely destroys all potentially harmful micro-organisms, thereby making
sure that the food product has a very long shelf life of over 12 months and needed no refrigeration.
When customer needs to eat, the food item pouch is either put in microwave oven to warm it or keep
in heated water for a few minutes and then serve to eat. Such ready to eat meals have been especially
given to soldiers in army of many countries who require carrying their rations while on war front or
while located far away from their main unit. The advertisements like, "Hungry Kyaa" are adding zest to
the market by popularizing such food items which are precooked and free from any preservative, and
yet have a long shelf life of over 12- months.

These food items are normally selling in pouches, well packed in cardboard printed boxes of
small book size and carry about 300 grams of cooked food at a price of about Rs. 40 to 200 in foreign
market depending upon the type of dish packed. One packet of vegetable dish is normally sufficient for
one meal for three persons and therefore falls in economic zone of consumer’s preferences

Retort food is cooked food to filled in pouches or containers made of plastic film, metallic foil,
or these materials in multi layer form, then sealed by heat sealing followed by sterilisation using heat
and pressure. Retort is a cooking process that uses heat and pressure to cook food in its sealed
package. Retort conditions are quite demanding with temperatures typically ranging from 251°F to
270°F.

Whenever the processor changes any of the following parameters, he has to restandardize the
existing technology to make it suitable for the new product.

 The container size and type (flat or stand up type pouches with different capacities)
 Orientation of pouches inside the retort (vertical or horizontal)
 Material and structure of pouches (aluminum foiled or microwavable),
 type of packing material (cans, trays or pouches)
 Head Space and amount of vacuum present inside the pouches.
 Product Formulation
 Product quantity
 Recipe Retort (type, size, or processing method)
 pre processing techniques
 Cooling method etc.

Industry Overview
The food processing industry has been slated for accelerated growth. It is projected to be a
futuristic industry and it is anticipated that, over the years, it will emerge as a leading player in the
global markets. As a result, the industry is seen to be witnessing feverish activity.

The size of the processed food market is estimated to be over Rs 110 bn and is growing at 10 to
15% per annum. The Rs 4000-bn food market in India has been growing at the rate of 6.5% a year. The
Indian middle class spends an estimated around Rs 700 bn annually on food and groceries alone. The
ready-to-eat segment is growing faster as technology is improving and so is the lifestyle of the people.

In the environment of a liberalised global trade regime and the latent potential that the food
processing sector offers, the development of the industry is called for in right earnest. But the industry
is mired in bottlenecks by way of a multiplicity of laws and the involved administrative machinery.

The popularity of ready to eat packed food now is no longer marks a special occasion. People
want value for time, money in terms of quality and variety. The food processing industry is one of the
largest industries in India. The ready-to-eat (RTE) sector in the Indian food industry is taking off in no
small way, thanks to escalating demand from urban Indians with hectic schedules and others looking
for convenient choices, authentic tastes and entrées on the go. This demand for ready-to-eat meals is
also propelling interest and investment in India’s fledgling food processing sector, with allied
businesses in cold chain and logistics also set to grow tremendously.
Players in Ready to Eat Food
 MTR
 Kohinoor Foods
 ITC
 Haldiram
 Tasty Bites

With the food items being categorised into various groups, around 33 per cent of consumers
were aware of snacks as a category of RTE products, 26 per cent are aware of meals, 21 per cent are
aware of desserts and 20 per cent of the consumers were aware of the pickle category

Preparation, Processing and Packaging of Pre-Mix for the

Production of Carrot Dessert
Abstract: Carrot Dessert (Indian: GajarKaHulwa) is the popular dehydrated carrot based
product along with other ingredients like milk solids, sugar, coconut, dry fruits and ghee. The product
has gained its importance because of its nutrition, health benefits, sweet taste and trends in some
societies of consuming sweet foods after meals. The purpose of this research project was to develop a
Ready to Cook (RTC) carrot desert which can satisfy the taste of common people while maintaining the
regional and traditional integrity and which can create its own space in the market. During the project
work, different recipes were made in which the ratio of ingredients carrot, milk solids, sugar, coconut
and dry fruits ratio was varied. Four different recipes were prepared contained carrot, milk solids,
sugar, coconut and dry fruits at the rate of (15g, 20g, 30g, 2g, 5g), (20g, 30g, 20g, 2g, 5g), (30g, 20g,
40g, 2.5g, 5g), (40g, 15g, 40g, 2g, 3g) respectively. A novel product was successfully produced and on
the basis of cooking time, sensory scores and nutritional values the recipe containing the ingredients at
the rate of (30g, 20g, 40g, 2.5g, 5g) was considered best and which was then standardized and on
which basis the package of net weight 160g was formulated.

Increasing affluence and leisure are among the most pervasive trends in contemporary society.
Affluence, a function of accelerating technology, and leisure, the by-product of emerging economic
abundance, increasingly characterize the social environment within which the society's life style is
given expression (Kruszelnicki K. S.). Machewad et al, (2003) studied the drying properties of carrots
and their suitability for producing various value added products. Chemical properties of carrots
indicated their suitability for drying and the feasibility of using carrot shreds for further processing.
Leaching losses were observed in reducing sugars and total sugars during pre-treatments and an
adverse effect was seen on beta-carotene content in all samples. Reconstitution ratio of dried carrot
shreds was higher in pre-treated samples than untreated. Carrot shreds dried in open air had a lower
reconstitution ratio. It was suggested that dried carrot shreds could be used as a base material for
preparation of carrot halwa (halva).Basantpure et al, (2003) conducted experiments to develop
dehydrated carrot halwa and studied the effect of milk to carrot ratio, sugar, sodium metabisulphite,
and temperature on the quality of dehydrated halwa. Central composite rotatable design was used at
five levels of independent variables. The results showed that the rehydration ratio decreased with an
increase in milk to carrot ratio, sugar and sodium metabisulphite whereas, it increased with an increase
in temperature. All these variables decreased the sensory responses namely, appearance, texture,
flavour and overall acceptability at quadratic level. The interaction between milk to carrot ratio with
sugar, sodium metabisuiphite and temperature, however, increased sensory responses. Sodium
metabisulphite and temperature interaction also increased all the responses significantly. Based on
individual and compromise optimization and canonical analysis, optimum conditions recommended
were: milk to carrot ratio of 2, sugar 225 g/kg of carrot shred, 255 ppm sodium metabisulphite and
drying air temperature of 71°C

Pazarincevic and Baras, (1970) studied the trans beta-carotene content in fresh carrots,
blanched fresh carrots and carrots dehydrated by different processes. After steam blanching for 5 min
the carrots were dried by conventional air-drying at 60, 70 and 80°C, by vacuum drying at 60 and 70°C
and vacuum drying at the same temperature after nitrogen purging. Results indicated major decrease
in trans beta-carotene content after conventional air-drying, losses being more pronounced at lower
temperature and longer drying periods. The losses of trans beta-carotene at 60, 70 and 80°C was 48,
40 and 38% in blanched carrots respectively. Only 21- 22% losses in vacuum drying, 7% with purging
also have been reported.

Grishin et al, (1973) studied the kinetics of dehydrating vegetables and changes in the main
chemical constituents (ascorbic acid, carotenes, essential oils, total sugars) due to drying process. It
was recommended that diced carrots (cubes 5-8 mm) should be dried at 160°C. Carrots and onions
were suggested to be used as basic ingredients of the snacks.Reyes et al, (2002) analyzed the drying
curves for 3 kg batches of carrot dice (9 x 9 x 3 mm) in a mechanically agitated fluidized bed drier
operated at temperature of 70-160°C, air velocities of 1.1-2.2 m/s and stirring rates of 30-70 rpm.
Moisture content and shrinking of diced carrot pieces were determined. Drying kinetics were modelled
by Fick's second law, for which an optimal agreement with the experimental data was obtained when
the effective diffusivity was determined by a correlation based on air velocity, air temperature and the
dimensional less moisture content of carrot dice. Loss of carotenes was minimum, when drying was
carried out at about 130°C with a drying time below 12 min.

Materials and Methods

The raw materials carrot (Daucuscarota), milk powder, sugar, coconut powder and dry fruits
were procured from local market.

Preparation of pre-mix:Prior to recipe preparation the carrots were blanched at 850C for 1.5
min in water bath (Precision Stainless Steel, Model 184), in a solution of 1% calcium chloride (E.NO.
509) which acted as a firming agent and 0.1% sodium meta bisulphate (E.No. 223) used as a
preservative and an antioxidant and immediately after blanching, the carrots were soaked in distilled
water which contained ice cubes (0 °C for 15 minutes) to stop further cooking. The above temperature,
time and additives concluded that this treatment is best for the preservation of carotenoid content of
carrots. The carrots were then dehydrated in Hot air Oven (Tempo Scientific And Laboratory
Equipments India Pvt Ltd)
 The carrots were then sliced and then crushed (Tempo Scientific and Laboratory Equipments
India Pvt. Ltd.). The ground carrots were then mixed with other ingredients including milk powder,
ground sugar, coconut powder and dry fruits. During mixing four samples were prepared containing
the ingredients ground carrots, milk powder, ground sugar, coconut powder and dry fruits in the ratio
of (15g, 20g, 30g, 2g, 5g), (20g, 30g, 20g, 2g, 5g), (30g, 20g, 40g, 2.5g, 5g), (40g, 15g, 40g, 2g, 3g)
respectively and the pre-mix was packed in air tight LDPE packaging materials, developed by R & D of
Kunwal Foods and Spices

Preparation of carrot desertFor desert preparation the ratio of amount of water to the pre-mix
was 3:1, the mixture was steamed for four whistles so that carrots are properly rehydrated and
swollen. The ghee was used at the end to impart the characteristic yellow color.

Chemical characteristics Moisture, ash and fat content were determined according to AOAC
2000 methods. Protein content was determined as per (IS: 7219:1973): Kjeldhal Method, protein
content was obtained by using the conversion factor of 6.25, Dietary fibre was determined by (IS:
11062) and carbohydrate content by difference method.

Sensory evaluationCooked Carrot dessert samples were evaluated for overall acceptability
(colour, texture, aroma and taste) and was carried out as per 9 point Hedonic scale, by the help of ten
semi trained judges.

Statistical analysis ANOVA - post hoc compariso- ns. The means were compared using Duncan’s
multiple range test (2007).

Microbial analysis Yeast, mold and Coliforms growth was checked. Analysis at different intervals
of time was done at different temperatures for example; for yeasts and molds at 28oC, for Coliforms at
360C.
COST OF PROJECT

A. Fixed Capital Investment

a. Land : 300 SQM Own

b. Workshed Area Sq.ft Rate in Rs. Amt. In Rs.

LAND 300 840.00 252000.00
BUILDING 75 5000.00 375000.00
STORAGE 80 3000.00 240000.00
Shelters & Parking 40 1000.00 40000.00
SPACE FOR GREENARY 57 500.00 28500.00
Total 935500.00

C. Machinery Qty. Rate Amount in Rs.

Palkova Making Machine 3 150000.00 450000.00
Gas Stoves 4 25000.00 100000.00
Halva Making Machine 3 150000.00 450000.00
Other hand tools 20 5000.00 100000.00
Total 1100000.00

d. Preliminary & Pre-operative Cost : Rs. 150000.00

e. Furniture & Fixtures : Rs. 30000.00

f. Contingency/Others/Miscellaneous
: Rs. 20000.00

Total Capital Expenditure : Rs. 2235500.00

Working Capital : Rs. 308750.00

Total Cost Project : Rs. 2544250.00

Means of Financing :
Own Contribution 5% Rs. 127213.00

Bank Finance : 95%

Term Loan Rs. 2123725.00
Working Capital Rs. 293313.00

Total Rs. 2417038.00

STATEMENT SHOWING THE REPAYMENT OF TERM LOAN & WORKING CAPITAL :

TERM
LOAN

Opening Closing
Year Balance Installment Balance Interest @
13.00%
1st 2123725 0 2123725 276084
2nd 2123725 424745 1698980 276084
3rd 1698980 424745 1274235 220867
4th 1274235 424745 849490 165651
5th 849490 424745 424745 110434
6th 424745 424745 0 55217

WORKING CAPITAL

Opening Closing Interest @

Year Balance Installment Balance 13.00%
1st 293313 0 293313 38131
2nd 293313 58663 234650 38131
3rd 234650 58663 175988 30505
4th 175988 58663 117325 22878
5th 117325 58663 58663 15252
6th 58663 58663 0 7626

STATEMENT SHOWING THE DEPRECIATION ON FIXED ASSETS:

WORKSHED @ 5.00%
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Opening Balance 935500 888725 844289 802074 761971
Depreciation 46775 44436 42214 40104 38099
Closing Balance 888725 844289 802074 761971 723872
MACHINERY @ 10.00%
Opening Balance 1100000 990000 891000 801900 721710
Depreciation 110000 99000 89100 80190 72171
Closing Balance 990000 891000 801900 721710 649539
TOTAL DEPRECIATION
Workshed 46775 44436 42214 40104 38099
Machinery 110000 99000 89100 80190 72171
Total 156775 143436 131314 120294 110270
Schedule of Sales Realization :
Details of Sales
Rate/ No. of
Particulars of Product Pair/Unit Pair/Unit Amount in Rs.
0
Palkova 450.00 3000 1350000.00
Halva 500.00 4000 2000000.00
Other Milk Products 300.00 2000 600000.00
0 0.00 0 0.00
0 0.00 0 0.00
0 0.00 0 0.00
0 0.00 0 0.00

Total 3950000.00

Capacity Utilization of Sales

Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year

Capacity Utilization 70% 80% 90% 90% 90%

Sales / Receipts 2765000 3160000 3555000 3555000 3555000

Rawmaterials :

Particulars Unit Rate/unit Reqd.Unit Amount in Rs.

Milk KGS 25.00 10000 250000.00
Sugar #REF! 35.00 2000 70000.00
Flavours Nos 50.00 20 1000.00
Other Food Ingrediants Nos 70.00 100 7000.00
Jagerry KGS 50.00 1000 50000.00
Total 378000.00

Wages
No. of Wages Amount in Rs.
Particulars Worker Per Month (Per Annum)
Workers 3 5000.00 180000.00
Superviser 1 6000.00 72000.00
Total 4 252000.00

Repairs and Maintenance : Rs. 10000.00

Power and Fuel : Rs. 30000.00

Other Overhead Expenses : Rs. 15000.00

Administrative Expenses :
Salary
Accounts & Stores 1 8000.00 96000.00
Master 1 9000.00 108000.00
Manager 1 12000.00 144000.00
Total 3 348000.00

Telephone Expenses 2000.00

Stationery & Postage 3000.00

Advertisement & Publicity 30000.00

Workshed Rent 0.00

Other Miscellaneous Expenses 30000.00

Total 413000.00

Capacity Utilization of Manufacturing & Administrative Expenses :

Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Capacity Utilization 70% 80% 90% 90% 90%
Manufacturing Expenses
Rawmaterials 264600 302400 340200 340200 340200
Wages 176400 201600 226800 226800 226800
Repairs & Maintenance 7000 8000 9000 9000 9000
Power & Fuel 21000 24000 27000 27000 27000
Other Overhead Expenses 10500 12000 13500 13500 13500
Administrative Expenses
Salary 348000 348000 348000 348000 348000
Postage Telephone Expenses 1400 1600 1800 1800 1800
Stationery & Postage 2100 2400 2700 2700 2700
Advertisement & Publicity 21000 24000 27000 27000 27000
Workshed Rent 0 0 0 0 0
Other Miscellaneous Expenses 21000 24000 27000 27000 27000
Total: 873000 948000 1023000 1023000 1023000
Assessment of Working Capital :
Particulars Amount in Rs.
Sale 3950000.00

Manufacturing Expenses
Raw Material 378000.00
Wages 252000.00
Repair & Maintenance 10000.00
Power & Fuel 30000.00
Other Overhead Expenses 15000.00

Production Cost 685000.00

Administrative Cost 413000.00
Manufacturing Cost 1098000.00

Working Capital Estimate :

No of
Element of Working Capital Days Basis Amount in Rs.
0 0 Material Cost 0.00

Stock in process 15 Production Cost 34250.00

Finished goods 30 Manufacturing Cost 109800.00

Receivable by 45 Manufacturing Cost 164700.00

Total Working Capital Requirement Per Cycle 308750.00

Financial Analysis
Projected Profit & Loss Account :

0
Particulars Year 1st Year 2nd Year 3rd Year 4th Year
Sales / Receipts 2765000 3160000 3555000 3555000
2765000 3160000 3555000 3555000
Manufacturing Expenses
Rawmaterials 264600 302400 340200 340200
Wages 176400 201600 226800 226800
Repairs & Maintenance 7000 8000 9000 9000
Power & Fuel 21000 24000 27000 27000
Other Overhead Expenses 10500 12000 13500 13500
Depreciation 156775 143436 131314 120294
Production Cost 636275 691436 747814 736794
Administrative Expenses
Salary 348000 365400 383670 402854
Postage Telephone Expenses 1400 1600 1800 1800
Stationery & Postage 2100 2400 2700 2700
Advertisement & Publicity 21000 24000 27000 27000
Workshed Rent 0 0 0 0
Other Miscellaneous Expenses 21000 24000 27000 27000
Administrative Cost 393500 417400 442170 461354
Interest on Bank credit @ 13%
Term Loan 276084 276084 220867 165651
Working Capital Loan 38131 38131 30505 22878
Cost of Sale 1343990 1423051 1441356 1386677
Net Profit Before Tax 1421010 1736949 2113644 2168323
Less Tax 0.00 0.00 0.00 0.00
Net Profit 1421010 1736949 2113644 2168323

CALCULATION OF DEBT SERVICE CREDIT RATIO (D.S.C.R) :

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Net Profit 1421010 1736949 2113644 2168323
Add :
Depreciation 156775 143436 131314 120294
TOTAL - A 1577785 1880385 2244958 2288617
Payments :
On Term Loan :
Interest 276084 276084 220867 165651
Installment 0 424745 424745 424745
On Working Capital
Interest 38131 38131 30505 22878
TOTAL - B 314215 738960 676117 613274
D.S.C.R = A/B
Average D.S.C.R 5.02 2.54 3.32 3.73
PROJECTED BALANCE SHEET :

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
LIABILITIES :
Promoters Capital 127213 127213 127213 127213
Profit 1421010 1736949 2113644 2168323
Term Loan 2123725 2123725 1698980 1274235
Working Capital Loan 293313 293313 234650 175988
Current Liabilities 0 0 0 0
Sundry Creditors 0 0 0 0
3965261 4281200 4174487 3745759
ASSETS :
Gross Fixed Assets : 2065500 1908725 1765289 1633974
Less : Depreciation 156775 143436 131314 120294
Net Fixed Assets 1908725 1765289 1633974 1513681
Preliminary & Pre-Op. Expenses 150000 112500 84375 63281
Current Assets 293313 293313 234650 175988
Cash in Bank/Hand 1763223 2222598 2305862 2056091
Total 3965261 4281200 4174487 3745759

CASH FLOW STATEMENT :

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Net Profit 1421010 1736949 2113644 2168323
Add : Depreciation 156775 143436 131314 120294
Term Loan 2123725 2123725 1698980 1274235
Working Capital Loan 293313 293313 234650 175988
Promoters Capital 127213 0 0 0
Total 4122036 4297423 4178588 3738840

Total Fixed Capital Invested 2235500

Repayment of Term Loan 0 424745 424745 424745

Repayment of WC Loan 0 58663 58663 58663
Current Assets 293313 293313 234650 175988
Total 293313 776721 718058 659395

Opening Balance 0 3828723 7349426 10809956

Surplus 3828723 3520702 3460530 3079444
Closing Balance 3828723 7349426 10809956 13889400
BREAK EVEN POINT AND RATIO ANALYSIS :
Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Fixed Cost 826359 836921 794352 747298
Variable Cost 674406 729567 778319 759672
Total Cost 1500765 1566487 1572671 1506970

Sales 2765000 3160000 3555000 3555000

Contribution (Sales-VC) 2090594 2430433 2776681 2795328

B.E.P in % 39.53% 34.44% 28.61% 26.73%

Break Even Sales in Rs. 1092935 1088147 1017013 950388

Break Even Units 2429 2418 2260 2112

Current Ratio 0.93 0.37 0.32 0.26

Net Profit Ratio 51.39% 54.97% 59.46% 60.99%