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Project Profile on Freeze Dried Fruit Juice Powder

Mott MacDonald

iNDEXTb

Sector Sub - sector Profile No. Project Title

Agro and Food Processing Food Processing

AF-24

Freeze Dried Fruit Juice Powder/Slices/Dices

Project Description

The project envisions setting of up a Freeze Dried Fruit Juice Powder/ slices and dices manufacturing unit from fruit pulp of Papaya, Banana, Mango and Sapota.

Product Application

Freeze dried fruit juice powders /slices and dices are also used as convenience foods in lieu of fresh ingredients and offer longer storage life than fresh fruits.

Freeze dried fruit powders/ slices and dices are often used for making many delicious food products like Fruit drinks, ice creams, thick shakes, yogurt and other desserts when fresh fruits are not available.

Fruit powders /slices/ dices contain 4% or less moisture and can be used to make soft candy, toffee and hard candy. The application of the fruit juice powder is growing in the form of making instant juice mixes, flavoring baby / infant foods, preparing food premixes, and range of bakery products.

The fruit powder is particularly suitable for use in rich cream fillings, chocolate products and baked goods as well as in cereals and fruit bars. Fruit granules are used in products where not only is the fruit content desired but also texture and crunchiness is required.

Market & Growth Drivers

Market China dominated the world in export of processed fruits in the year 2003, registering an average growth rate of 10%. USA, UK and The Netherlands are main markets for processed foods, with USA playing the lead by importing 15% mango and mango pulp and 9% grapes. Major market for tropical dried fruit is Europe with an estimated import of about 11,500 MT followed by USA (5000 MT). Around 70% of USA’s import consists of Banana chips. India is the second largest producer of fresh fruits and vegetables in the world. Globally, the Indian food processing industry is ranked fifth considering its high quantum of consumption and production. Indian exports of dried and preserved vegetables registered an estimated 13% growth in the year

2004-05.

As per the industry estimates, there are around 9000 processed food manufacturing units in the country out of which an approx. 5198 units are engaged in fruits and vegetables processing. Compared to countries like Malaysia (80%), Thailand (30%) and China (23%), India processes only 2% of produced fruits and vegetables. The export of processed fruits and vegetables is mainly constitutes dried and preserved vegetable (52%), mango pulp (21%), pickle & chutney (8%) and other processed fruits and vegetables (19%).

Project Profile on Freeze Dried Fruit Juice Powder

Mott MacDonald

iNDEXTb

The export’s of processed fruits and juices from April – June 2005 was valued at an estimated amount of INR 1070 million, which improved in the year 2006 and was recorded at INR 1679 million.

Processed Fruits Export from India 2004-05 USA Others 13% 48% Russia 14% UK 10% Saudi
Processed Fruits Export from India 2004-05
USA
Others
13%
48%
Russia
14%
UK
10%
Saudi
UAE
Arabia
6%
9%

Source: Ministry of Commerce and Industry, India

As planned by the Ministry of Food Processing, India’s share in global food trade is estimated to elevate from 1% to 3%. The market size for processed foods is estimated to reach INR 13500 billion in the year 2014 -15, from INR 4600 billion in the year 2003-04 and the share of value added products in processed food consumption is estimated to reach 58% from 38% by the year 2014 - 2015.

The major market for mango pulp exports are The Netherlands, Saudi Arabia, Kuwait and Hong Kong. Singapore, USA, UK, Germany and UAE are for processed mango products like pickle and chutneys. Export of Juices, tomato paste etc. is mainly concentrated in USA, Russia, UAE and The Netherlands. Overall the major market for Indian processed fruit export are Russia (14%), USA (13%), UK (10%), Saudi Arabia (9%), UAE (6%) and others (48%).

Processed foods division of M/s.Vadilal Industries is already manufacturing slices and dices of Sapota, Papaya and Mango in their processing unit at Dharampur, in Valsad district. In the proposed project also mainly Papaya, Banana, Sapota and Mango will be processed for manufacturing freeze dried fruit juice powders / slices and dices for domestic and export markets.

Growth Drivers

Changing food habits in the country has increased consumption of fruit and fruit products and hence market for fruit juice powder/ slices/ dices have also increased.

Increasing number of nuclear families in India particularly in urban and semi urban areas, and increasing number of working women in the country has increased demand of products like freeze Dried fruit juice powder /slices and dices.

Why Gujarat?

Availability of all fruits and vegetables that are used in making freeze dried fruit powder/slices and dices at different season time in hygienic condition at reasonable cost

Well developed infrastructure like road, rail, port and air connectivity to domestic and export markets

Project Profile on Freeze Dried Fruit Juice Powder

Mott MacDonald

iNDEXTb

Gujarat has the necessary infrastructure of fruit processing units that can cater to the growing

demand from export markets.

Gujarat is having several food processing units like Ice cream and dairy products

manufacturing leading brands (Amul, Vadilal, Havmor etc;), Fruit drink concentrate

manufacturers (Rasana Brand- Pioma Industries Pvt. Ltd) , hence ready domestic market is

available.

Manufacturing Process & Technology

Select quality of processable Banana, Sapota, Mango and Papaya varieties are growing in Gujarat,

and that will be used for manufacturing of Freeze dried fruit juice powder / slices and dices

manufacturing. These fruits will be procured directly from growers / APMC markets to reduce

transportation time.

There are three different methods of manufacturing Fruit Juice Powder, a) Controlled heat drying of

fruit juices, b) Spray drying of Fruit juices after concentrating under vacuum and c) Manufacturing of

fruit juice powder by freeze drying process.

Freeze drying process has distinct advantage over the other two processes and hence it has been

suggested for this project.

Commercial production of one or more Fruit Juice Powder / slices / dices is possible during different

period of the year. The manufacturing machines used in the production of Freeze Dried fruit juice

powder will be multi purpose, with minor modification in process steps. Fruit slices and dices are also

produced in the same plant except manufacturing process differs slightly. The broader product range

gives better capacity utilization and economic viability.

These fruits will be processed and the schematic diagram of freeze dried fruit juice powder / slices /

dices manufacturing is summarized in following figure:

Fruit Receiving Upload Wash Inspect Inspect Inspect Cool Peel Sample Sort Store Core Analysis Dry
Fruit Receiving
Upload
Wash
Inspect
Inspect
Inspect
Cool
Peel
Sample
Sort
Store
Core
Analysis
Dry Clean
Deseed
Press
Sediment
Finish
Pulp
Juice
Extract /
Clarify
Strain
Grind
slices /
Filter
dices
Freeze
Analyze
Packing
Store
Drying
Adjust
Process
Distribute
Process
Blend

Project Profile on Freeze Dried Fruit Juice Powder

Mott MacDonald

iNDEXTb

Ripened fruits are inspected, washed, blanched, peeled, pulped (Sliced or diced), centrifuged,

homogenized fruit juice. These fruit juices, in turn are freeze dried using Plate freezer manufacturing

process to remove water from the material. Fruit juice powder / slices / dices will be manufactured

using freeze drying process and aseptically packed in pre-sterilized, high barrier bags-in-drums which

preserve the taste, flavour, colour and aroma of the fresh fruits.

The equipment process piping, layout etc. will have to be carefully designed, keeping in mind the

GMP and Hazard Analysis and critical control points (HACCPs) provisions. Strict sanitation and

hygiene condition is necessary to maintain quality of end products.

Raw Material

The following table summarizes Gujarat’s potential in production of the two proposed fruits for the unit.

Production of Banana & Mango in Gujarat

Sr.

   

No.

Fruits

 

Years

   

2001-02

2002-03

2003-04

2004-05

2005-06

1

Banana

1154330

1403077

595206

729076

772134

2

Mango

457550

495086

1760901

1979257

2498776

Source: Directorate of Agriculture, Government of Gujarat

Suggested Plant Capacity & Project Cost

Estimated project cost of Freeze Dried Fruit Juice Powder / Slices/ dices manufacturing unit with

approx. 900 Tons per annum plant capacity is INR 60 Million (US $ 1.33 Million).

Estimated Block Capital Project cost & Means of finance

Sr.

   

No.

Cost of project

INR in million

1

Land and Land Development

2.10

2

Building and civil works

6.00

3

Plant & Machinery

34.00

4

Misc. Fixed Assets

3.50

5

Preliminary & Pre-operative

3.40

6

Provision for contingencies

3.50

 

Total Fixed Assets

52.50

7

Margin Money for working capital

7.50

 

Estimated Block Capital Cost of Project

60.00

 

Means of Finance

 

8

Promoters contribution

20.00

9

Term loan

40.00

 

Total Means of Finance

60.00

Project Profile on Freeze Dried Fruit Juice Powder

Mott MacDonald

iNDEXTb

As indicated above, the proposed project will require an approx 6000 sq. mt of land with an proposed

built up area of 1500 sq. mt. The unit is proposed to have an installed capacity of 900 TPA or

considering 180 days working in a year the plant will have installed capacity of 5 MT / day. The total

fixed cost of the project is estimated at INR 52.50 million and INR 7.50 million will be the working

capital margin, which put together make estimated capital cost of INR 60 million. The unit is proposed

to cater to domestic as well as to International demand and hence it is suggested to have a Debt

equity ratio of 2.0:1. On the basis of suggested debt-equity ratio, proposed term loan amount will be

INR 40 million and promoters’ share in the form of equity will be INR 20 million.

Plant and Machinery

The proposed project would require the following as basic and necessary plant and machinery:

List of Main Plant and Machineries & Utility Equipments

Sr. No

Particulars

Quantity

Suppliers

1

Fruit Conveyor

1

Shriram Temp-x-changers ( India), Makarpura GIDC, Vadodara

2

Fruit washer 1 Tons / hours

1

Shriram Temp-x-changers ( India), Makarpura GIDC, Vadodara

3

Inspection cum sorting conveyors

1

Shriram Temp-x-changers ( India), Makarpura GIDC, Vadodara

4

Papaya peeling machine

1

Geeta food Engineering, Navi Mumbai-

400705

5

Bucket Elevator

1

Shriram Temp-x-changers ( India), Makarpura GIDC, Vadodara

6

Fruit Mill / Pulper Machine

2

Shriram Temp-x-changers ( India), Makarpura GIDC, Vadodara

7

Pulp strainer

2

Shriram Temp-x-changers ( India), Makarpura GIDC, Vadodara

8

Sediment Filter

2

Process Master , Pune

9

Pulp/ Slice/ Dice Freeze Drier continuous type 1 MT/hour

2

GEA Process Engineering(India) Limited, GIDC, Ranoli, Vadodara

10

Fruit Powder/ Slice/Dice packing line

1

GEA Process Engineering(India) Limited, GIDC, Ranoli, Vadodara

11

Pellet Truck for handling

1

Godrej & Boyce co. Ltd, Mumbai

12

Quality control equipments

Lot

Sunjay Tehnologies Pvt.Ltd-Mumbai

13

HT / LT Electrification including control panels

Lot

Kirloskar Electricals Ltd, Mumbai / Ahmedabad

 

DG 75 KVA set for Stand by

 

Kirloskar Electricals Ltd, Mumbai / Ahmedabad

14

power including changeover switch

Lot

Utilities

The unit would necessitate utilities like water, electric power and refrigerant for cooling. 50 KL water

will be required for washing, cleaning and process, 120 HP connected power and Ammonia gas as

refrigerant, would be a basic requirement for the proposed unit.

Project Profile on Freeze Dried Fruit Juice Powder

Mott MacDonald

iNDEXTb

Man power

The proposed unit would require 40 persons, this will include 4 managerial level people, 4 Supervisors, 8 plant operators, 4 office assistant cum account staff, 4 skilled and 12 unskilled workers and 4 security staff.

Suggested Location

The preferred location will be Central and South Gujarat as major fruit production area and consuming market present there. The suggested location can be in the district of Surat, Vadodara, Valsad, Bharuch, Ahmedabad and Anand.

Project Time Line

The proposed project will have cumulative implementation period of 10 – 12 months of which 5 to 6 months would entail obtaining the obligatory clearances from various authorities.

Financial Indicators

Based on the profitability projections worked out for the proposed project, key financial indicators are as summarized below:

Key Financial Indicators

Sr. No

Financial Ratios

1 st Year

2 nd Year

3 rd Year

A

Break-Even Point in % Capacity

41.30

37.02

33.24

B

Debt-service Coverage Ratio

1.62

2.02

2.50

C

Average DSCR

 

2.05

D

Return on Investment (ROI)

30.50 %

32.80 %

35.21 %

E

IRR for 10 Years Project Period

 

42%

As perceived from the Project cost and Means of finance table, the suggested Debt Equity Ratio for the proposed project is 2.5:1. The IRR (Internal Rate of Return) for the proposed project is approx. 42% projected for a period of 10 years.

Clearance Required

The proposed unit will have to register itself with Secretariat of Industrial Approvals (SIA), Ministry of Industries and Government of India, by filing Industrial Entrepreneur’s Memorandum (IEM), as it will have plant and machinery investment of more than INR 10 million.

As mentioned previously the proposed will be exporting Freeze Dried Fruit Juice Powder in advance countries like USA, Canada, UK, Europe and Australia. The unit will require to get register their product with Food and Drugs Administration (FDA) in these countries, apart from registration with Indian and State Food Administration.

Project Profile on Freeze Dried Fruit Juice Powder

Mott MacDonald

iNDEXTb

The unit will also require registering with RBI, DGFT, MOFPI and APEDA as registered manufacturer exporter to avail export incentives.

Critical Aspects

The most critical aspect of this product will be its shelf life for export consumers and hence there will need for import of stabilizers and preservative meeting FDA regulations in consuming countries and Codex standards followed by them.

Agencies to be contacted

Industrial Extension Bureau

Mott MacDonald India

Gujarat Agro Industries Corporation Ltd.