Objectives/Background The present model project is for establishing a unit to manufacture canned mango pulp. The demand for the product is increasing due to development of mango beverage industry. 'Alphonso' variety cultivated in the Konkan Region of Maharashtra has been taken as an example. Region specific varieties suitable for pulp making may also be considered for such activity. Varieties which have low fibre and high quantity of pulp are best suited for making pulp. Totapuri and Neelam varieties in the Southern Region, Chousa and Langra in the Northern and Central Region can be considered as suitable.

Manufacturing Process The Central Food Technological Research Institute (CFTRI) Mysore, has developed the process know-how for manufacturing canned mango pulp. The details of the technology could be obtained from them. However, a brief outline of the process developed by them is indicated herein. The selection of fully ripe mangoes is the first step. It is followed by washing and peeling. The prepared mangoes are passed through pulper fitted with 30 mesh sieve to obtain the pulp. The pH of the pulp is to be adjusted to 3.8 - 4 by adding citric acid. It may also be sweetened so that BRIX is 16-18%. Ascorbic acid if added to the pulp may be helpful for retention of colour, flavour and carotene. The pulp is then heated to 850 C and A 10 size sterilised cans are filled with hot pulp. Thereafter, the cans are sealed, processed at 1000 C for 45 minutes and cooled. Flow Sheet for production of Canned Mango Pulp.

pH 3.Flow Sheet for Production of Canned Mango Pulp (CFTRI Process) Ripe Mangoes | Washing | Peeling/Slicing | Pulp Extraction | Pulp | BRIX AND ACIDITY ADJUSTMENT | (Brix 16 .4) | Heating to 850C | Filling Hot Pulp into Plain A 10 Cans | Sealing | Processing .8 .180.

etc. 60%.Pasteurisation of filled and sealed cans. 1955 of the Government of India proves for the area requirements annual production limit. However. 70%. second. Capital Inputs The fixed capital and working capital for the project would be - . technical staff requirements minimum requirements of equipments and machinery. about 100 gms of sugar) . At 100 0C) | Cooling | Labelling | Packing | Storing Essential Requirements . Quality Standards Fruit Products Order (FPO). sanitary requirements. 80% and 90% capacity during the first. Installed capacity The installed capacity of the proposed unit would be 300 MT of pulp.pH value around 4 (by adding citric acid) . third. (This kills the bacteria in the pulp).Brix to be maintained at 16-18 0 ( 850 gm of pulp. it is assumed that it would operate at 50%. fourth and fifth/remaining years respectively.(45 min.

e. Utilities Electricity should be available for running the units.62 lakhs (Annexure XVIIC) Fixed capital requirements Land The entrepreneur should have acquired suitable land with all infrastructure facilities for setting up the unit. However generator set is necessary for shut off days and also to ensure uninterrupted power supply. i. etc. . However. Mango is available locally. Modern machinery for efficient and quality production is essential. It should also be ensured that the land acquired is nearer to the area where traditionally mangoes are grown in large areas so that the availability of the mangoes in adequate quantities is ensured. Building The specification syndicated in the FPO 1955 may be adhered to for constructing storage/office premises. The item accounts for major share of the working capital cost. Abundant water supply is also required for washing of fruits and other treatments in the manufacturing process. It is desirable to have captive cultivation/promoters' orchards for quality fruits and its continuous supply.A) Fixed capital Rs. are envisaged to be used by the unit. the bigger size cans of 3. Cans 10 can of 850 gms which are supplied by the companies such as Metal Box. Wages & Salaries Technically qualified supervisors are to be appointed for the success of the project.2 kg can also be used for the wholesale market. Working Capital requirements Raw Material Raw material.35 lakhs (Annexure XVIIA and XVIIB) B) Working capital Rs. Plant and Machinery The plant and machinery required for the project are available locally and no import component is envisaged. Poysha.

Further.35. The IRR works out to more than 50% for the unit.00 Rs.38.15.50.Means of Finance Rupees in lakhs a) Fixed Capital Margin Money on working capital (to be capitalised) Total project cost Margin (25%) Bank finance (term loan) Say Rs. i. the rest of the days could be utilised for the production of pulp from other mango varieties for which the season comes later. jelly. Working capital requirements (renewed on annual basis) will have to be provided by the financing banks from their own resources. It has been assumed that Mango pulp of one variety would be manufactured for which the season is for 50 days.50 Rs. Economics of the Project The income and expenditure from the unit is given in Annexure XVIIE.87 Rs. raw mango.63 Rs.46. papaya. etc.50 Rs.15. . Could be made from fruits such as kokum.50 Details of working capital requirements are given in Annexure XCIIC and XVIID.e. pineapple also. Products such as syrup. However. squash. soft loan assistance for margin money upto a certain limit would also be available from NABARD depending on the merit of each case. From 15 April to 5 June. Rupees in lakhs Margin Bank Finance (Cash credit) Rs.37.12. Details of financial analysis are furnished in Annexure XVIIF.50 Rs.00 NABARD provides refinance for such projects. This would enhance the capacity utilisation of the unit resulting in increased surplus.

will have to be added to the cost. the unit would be able to repay the term loan within a period of 7 years. Terms and conditions The terms and conditions as applicable to the projects refinanced by NABARD on a schematic basis under farm sector would be applicable to this project.3 Year 4 1.2 Year 7 2. The surplus is generated from the year one.4 Based on the cash flow. only interest will be paid and repayment of loan will start from year 2 and completed in 6 equal yearly instalments.1 Repayment Year 2 1. The banks may provide finance to such projects.Cash flow With the manufacturing of one variety of fruit pulp for 50 days. . Export The economics of the project would change if the pulp is exported.. (Annexure XVIIG).7 Year 5 2 Year 6 2. etc. Sales revenues from export will enhance and the cost of air/ship freight as also the commission. the unit is viable. In the first year. The unit has to survey the market and provide for marketing expenses for the purpose.1 Year 3 1. The debt service coverage ratio works out as under - Year 1 1. charges.

000 LIST OF PLANT AND MACHINERY AND OTHER ASSETS (ANNEXURE XVIIB) 1 List of Plant and Machinery and other assets (Rupees.II A) Contingency 1. etc.000 50.2000/sq.000 3.000 .mtr c) Other civil works (compound wall.800.mtrs at Rs.000 3. fixed costs (Annexure IB) 4 Preliminary & pre-operative expenses (Annexure .2000/sq.000 170.000 a) Manufacturing premises 300 sq.000 310.000 14.000 600.000 ii) Double seaming machine with chucks (2 different models) iii) Embossing machine with Alphabets & Numerical iv) Can washing machine with accessories v) Rectifier & Refractometer vi) Pulper with accessories vii) Steam-Jacketed Kettles and stirrer (3+3) viii) Canning retorts ix) CS top table (4) x) Steam pack boilers with accessories xi) Generators (40 KVA) xii) Furniture.500.) 3 Plant and Machinery including Misc.000 243.00. at Rs. Fixtures and other items 120.000 600.000 150. b)Storage and Office purposes 300 sq.000 100.000 70.) i) Body reforming unit with Dies and shaft/cones 40.000 125. parking shed toilets.000 225.000 8.mtrs.XVII(A)] 1 Leased hold land 2 Building 50.CAPITAL EXPENDITURE [ANNEXURE .mtr.000 25.

000 10.000 3.54.000 Raw Material Wages & Salaries Utilities Overhead expenses (As per Annex.000 * Only 60% of the estimated amount has been taken into account for purpose of arriving at working capital requirement during first year.60.00.000 1.800 * Rs.150 * Rs. tanks.XVIIC) ( For purpose of providing Working Capital Loans ) 300.97.000 2. Equipments.61.000 50.000 * Rs.84.500 1.500 8. 3.000 Rs.000 25.xiii) Misc. Expenses Total WORKING CAPITAL ANNEXURE (ANNEXURE . 2. 67. III A) " " " Say Rs.800.86. electric installations.950 Rs.62. etc. Total 2 Preliminary and pre-operative expenses i) Project report and consultancy ii) Printing and Stationery iii) Postage and Telegrams iv) Telephone charges v) Travelling expenses vi) Misc. .

000 .000 60.000 48.484. @ Rs.000 36.000 96.12 each 7500 cartons @ Rs.0.000 18.235 10.000 Yearly (Rs.000 1 x 4000 x 12 1 x 3000 x 12 4 x 2000 x 12 2 x 750 x 12 Sub-total 5.000 36.375 or say 5.640 90.10 per kg 176.482.000 88.XVIID) for the first year Recurring Expenditure A) Raw Material i) Mango 6 tonnes per day for 50 days ii) Sugar.000.000 176470 nos.000 198.) 48.117. @ Re.STATEMENT SHOWING THE DETAILS OF THE WORKING CAPITAL REQUIREMENTS (ANNEXURE . 100 gm per 850 gm pulp iii) Cans iv) Packing Material v) Labels vi) Preservatives & Chemicals (citric acid etc.10.) TOTAL (A) B) Wages/Salaries i) Administrative Manager Accountants Sales Supervisors Peons ii) Production Technologist Supervisors Assistants Other supporting staff iii) Seasonal Unskilled 40 x 50 days x 20 40.000 /per ton Rupees 3.12 each 176470 nos.500 300 tonnes @ Rs.000 17650 kg @ Rs.000 1 x 3000 x 12 2 x 2000 x 12 2 x 1500 x 12 5 x 1000 x 12 36.50/each 2.

000 Rs.500 x 7. Fuel (a) Generator Generator in use for shut off days At 50 liters/day. expenses TOTAL (D) 10.XVIID) 150 ltrs.Semi-skilled 40 x 50 days x 30 Total (B) 60% of 478.500 ltrs Rs.12.50 x 8 x 25 Total fuel requirements (a+b) Cost . for 7 days during production STATEMENT SHOWING THE DETAILS OF THE WORKING CAPITAL REQUIREMENTS (ANNEXURE .10.000 = 60.000 60.000 .000 100.75 KW x No.78.000 100. of days x rate 30 HP x 0.5 iii.75 KW x 8 x 50 x 1.000 120.67.800 C) Utilities i.000 600.50 ii. of hrs.250 = Rs.750 Rs.000 150.000 286. 350 ltrs 500 ltrs (b) Boiler Fuel required @ 25 ltrs/hr for 25 days .20.1.000 50.000 ltrs 10. Water Total of C (i + ii + iii) 60% of 1. postage Repairs & Maintenance Spare Misc.250/- 100.12. Power HP x 0.150/Overhead Expenses Transportation Travelling Sales promotion Stationery.500 Rs.000 20. x No.

235 8. Rs. Income (Sales) (Amt.586.000 33.600 1.228.788.60% of Rs.000 141.975 1.800 840.720 10.352.6.760 III 70 210 247.800 478.175 158.000 1.200 860.60.880 123.800 9.640 10.000 33.600 7.638.212.120 12.588.117.735.871.000 6.500 88. Raw material ii.000 720.325 15. Wages and Salaries iii.723.580.00.000 573.470 8.677.500 15.000 12.800.162.500 14.265 II 60 180 211. Insurance vi.500 201. Interest on working capital at 20% TOTAL EXPENDITURE NET INCOME (A+B) 7.820 10.560.600 156.261.400 600.484.900 13.400 764. 3.000 TOTAL (A+B+C+D) 6.200 1.425 2.250 STATEMENT SHOWING INCOME AND EXPENDITURE (ANNEXURE XVIIE) A.008.980 112.000 Rs.200 960.000 105. of 'A' 10 cans of 850 gms.400 1.050 IV 80 240 282.265 1.324.400 50 150 176.000 134.098. Expenditure 1 2 Recurring cost i.000 1.) Years I Capacity Utilisation Sales in tonnes No.882.000 33.180 Capital cost .50 per tin Less rejections at 1% Total Income B.637.000 5.975 13.823.000 1.000 12.350 V 90 270 317.200 8.487.590.482.000 33.400 179.000 9.525 3.000 930.674.000 1.976.763.115. Overheads and other expenses v.600 669. Utilities iv.000 33. Sale value at Rs.157.

868 = 212.25 69.F.29 15.13 139.66 31.05 87.49 24.18 37.33.6 157.573 lakhs. 76. BCR = 1.54 36.26 46.853 =210.F.2 27.249 IRR > 50% PWB at 15% D.22 . Costs Benefits Net Surplus 114.25 79.F. in lakhs) Years I A. 99.23 III 106.961 = 485.57 104. 76 PWC at 15% D.35 -26.47 70 IV 122.188 = 520.86 V to VII 135.67 43.63 205.23 21.839 176.91 80.541 PWC at 50% D.76 17.94 69.STATEMENT SHOWING FINANCIAL ANALYSIS OF THE MANGO PULP MANUFACTURING UNIT (ANNEXURE .07 40.82 13.38 122. B.77 79.07 : 1 PWB at 50% D. 58.XVIIF) (Rs.266 NPW = Rs.F.69 II 91.