RAJASTHAN AGRICULTURAL

COMPETITIVENESS PROJECT

Detailed Project Report on Tomato

Processing

Prepared by:

AGRI BUSINESS PROMOTION FACILITY

Table of Contents

List of Figure 2

List of Table 3

Chapter 1- Introduction to Tomato 4

Chapter 2 - Tomato Processing Industry 7

Chapter 3- Process Description and Technology 12

Chapter 4 - Technology Options Available 16

Rajasthan Agricultural Competitiveness Project 1

List of Figure
Figure 1: Top 5 Leading Tomato Producing Countries ............................................................................. 5
Figure 2: Tomato Ketchup Market players ............................................................................................. 11
Figure 3: Generic process flow diagrams Tomato Ketchup Line ............................................................ 14

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List of Table
Table 1: Year wise Area, Production and Productivity of Tomato in India ................................................ 5
Table 2: State Wise Tomato Production in India ...................................................................................... 5
Table 3 Production profile of Tomato in RACP clusters ........................................................................... 6
Table 4: Assumptions for Operating Tomato Processing Unit ................................................................ 17
Table 5: Operational Cost Assumptions ................................................................................................. 18
Table 6: Selling price assumptions ......................................................................................................... 18
Table 7: Project Cost Summary’ ............................................................................................................. 19
Table 8: Means of Finance Summary..................................................................................................... 19
Table 9: Civil Cost Summary .................................................................................................................. 19
Table 10: Utilities and other project components ................................................................................... 20
Table 11: Plant and Machinery ............................................................................................................... 20
Table 12: Income Statement .................................................................................................................. 21
Table 13: Balance Sheet ........................................................................................................................ 22
Table 14 Financial Indicators ................................................................................................................. 23

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Chapter 1- Introduction to Tomato

Tomato (Lycopersicon esculentum) belongs to the genus Lycopersicon under Solanaceae

family. Tomato is a herbaceous sprawling plant growing to 1-3 m in height with weak woody
stem. The flowers are yellow in colour and the fruits of cultivated varieties vary in size from
cherry tomatoes, about 1–2 cm in size to beefsteak tomatoes, about 10 cm or more in
diameter. Tomato is a nutrient-dense superfood that offers benefit to a range of bodily
systems. Its nutritional content supports healthful skin, weight loss, and heart health. Tomato
is considered both, a fruit and a vegetable and forms an integral part of cuisines across the
globe. Daily consumption of tomatoes provides a great boost to the health, along with
improving the flavour of food.

Tomato is one of the most important "protective foods" because of its special nutritive value.
It is one of the most versatile vegetable with wide usage in Indian culinary tradition. Tomatoes
are used for soup, salad, pickles, ketchup, puree, sauces and in many other ways It is also
used as a salad vegetable. Tomato has very few competitors in the value addition chain of
processing.1

1.1 Global Scenario- Tomato

Tomatoes are consumed worldwide and used in diverse ways in different world cuisines.
Tomatoes are eaten raw in salads or used to prepare tomato soup and ketchup. Tomato juice
is a popular drink and used in cocktail preparation. Since the tomatoes are acidic in nature,
it is easy to preserve tomato paste and sauces at home. These fruits are a key ingredient in
pizzas and other Italian dishes. In India, tomatoes are a favourite additive in cuisine due to
the tangy flavour contributed by the tomato to the dish.

Production of Tomato

In 2017, the worldwide production of tomatoes was 170.8 million tons. China, the leading
producer of tomatoes, accounted for 31% of the total production. India, Turkey and the United
States followed with the second, third and fourth highest production of tomatoes in the world.
In the European Union, tomatoes accounted for 23% of the total output of fresh vegetables.
Of this, more than half was produced in Spain, Italy, and Poland. The global tomato exports
the previous year was worth 88 billion USD.

1 http://agritech.tnau.ac.in

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Figure 1: Top 5 Leading Tomato Producing Countries

Production of Tomatoes in Tonnes, 2017

80000000
59514773
60000000
40000000
20708000
20000000 12750000 10910990 7297108
0
China, mainland India Turkey United States of Egypt
America

1.2 Indian Scenario- Tomato

In India, Tomato occupies a significant position in vegetable production. Area under tomato
in the country is about 4.97 lakh hectares and it is about 7.3% of the total cropped land under
vegetables. Annual production of tomato in India is 86 lakh tons which is 8.5% of the total
vegetable production. There has been a gradual increase in the area under tomato while the
production has been fluctuating due to weather related factors.
Table 1: Year wise Area, Production and Productivity of Tomato in India2

Year Area (In ‘000 Hectare) Production (In ‘000 MT) Productivity (In MT/Hectare)
2013-2014 882.0 18735.9 21.2
2014-2015 767.3 16385.0 21.4
2015-2016 774.0 18732.0 24.2
2016-2017 797.0 20708.0 26.0
2017-2018 789.0 19759.0 25.0
The major Tomato producing states in the country are Andhra Pradesh, Madhya Pradesh,
Karnataka, Gujarat, Bihar, Odisha, West Bengal, Telangana, Chhattisgarh, Haryana, Tamil
Nadu, Uttar Pradesh, and Maharashtra. These states account for 91% of the total production
of the country.
The estimated production of tomato during the year 2017-18 was 4.58 % lower over the year
2016-17.
As per the table below the production of Tomato during the year 2018-19 (first Advance
Estimate) is estimated to be about 3.83% higher as compared to the previous year. However
as compared to past 5 years’ average production, it is 4.77% higher.3
Table 2: State Wise Tomato Production in India
(Production in ‘000 Tonnes)
Five year Average
2017-18 2018-19 (1st A.E.)
(2013-14 to 2017-18)
# State/UTs
% % %
Production Production Production
Share Share Share
Andhra
1 2857.98 15.15 2744.32 13.89 2845.64 13.87
Pradesh

2 indiastat.com
3 agricoop.gov.in

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 Madhya
2 2307.82 12.24 2419.28 12.24 2589.89 12.62
Pradesh
3 Karnataka 2029.47 10.76 2081.59 10.53 2185.67 10.65
4 Gujarat 1321.3 7.01 1357.52 6.87 1371.1 6.68
5 Bihar 1012.07 5.37 941.56 4.77 1325.66 6.46
6 Odisha 1335.03 7.08 1312.07 6.64 1312.07 6.4
7 West Bengal 1198.76 6.36 1265.25 6.4 1268.12 6.18
8 Telangana 1146.26 6.08 1171.5 5.93 1170.07 5.7
9 Chhattisgarh 952.29 5.05 1087.33 5.5 1108.22 5.4
10 Haryana 673.31 3.57 753.72 3.81 911.43 4.44
11 Others 4033.99 21.39 4625.19 23.41 4427.37 21.59
Thus, for a sustainable growth of tomato production in India, it is essential to maintain
profitability in tomato cultivation to ensure its continuity. To bridge the existing communication
gap among stakeholders which causes linkage deficit between stakeholders and inaccurate
prediction of demand an online system can help match demand and supply of tomatoes.
Proper development of infrastructure at the Indian markets is necessary for maximizing
efficiency in the marketing channel which helps in the smooth sale of fruits and vegetables.
Also, it minimizes wastage of vegetables in the market due to handling of highly perishable
products by labourers.

1.3 Rajasthan Scenario

In Rajasthan, total production of Tomato is of 85,000 MT under total cultivated area of 21,000
Ha which is very low in terms of productivity when compared to national average.4 Production
statistics of last 3 available years is as follows:
# Year Area (‘000 Ha) Production (‘000 MT)
1 2014-15 16.52 75.23
2 2015-16 20.51 83.29
3 2016-17 21.00 85.00

Out of 17 clusters of RACP, only 2 clusters have majority of Fruits and Vegetables production
including of Tomato. These clusters can be aimed at for setting up of tomato processing unit.
Table 3 Production profile of Tomato in RACP clusters
# Cluster Area (Ha) Production (MT)
1 Bansur 300 12,000
2 Gudha 550 12,100

4 National Horticulture at a Glance 2017 (NHB)

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Chapter 2 - Tomato Processing
Industry

Tomato processing industry is huge. A large part of the world tomato crop is processed into
tomato ketchup, paste, Puree, Jam & Chutney etc. which is subsequently used as an
ingredient in many food products. India has been exporting processed tomato in the form of
tomato paste and ketchup. Tomato sauce is being used with snacks like rolls, cutlets,
samosas, chops, soup and other Continental as well as Chinese dishes.
The only ketchup and sauce market in India is pegged at Rs 1,000 crore and growing at
around 20% year-on-year. There is a big market for the processed tomato products. Tomato
products are one of the chief ingredients in ready-to-eat or fast food products.

2.1 Global scenario

The global ketchup market was valued around USD

4.15 billion in 2015 and is expected to reach USD
5.9 billion by 2023, at a CAGR of 3.8%. The global
tomato ketchup market is primarily driven by the
growing demand for fast food across the world.
While North America is the prime market for fast
food, the growing adoption of the Western culture
across the world is leading to significant demand for
fast food in Asia Pacific and Latin America, where
the market stands to grow rapidly owing to the increasing disposable income of urban
consumers. The convenience of fast food means the burgeoning middle class is likely to
remain a key consumer demographic for the fast food industry in the coming years, leading
to strong growth prospects for the global tomato ketchup market.5
The global ketchup market is dominated by North America, with a 37% share of the total
market value. It is followed by Europe, Asia-Pacific, South America and Africa. North America
is the largest consumer of ketchup, especially tomato ketchup, and the USA is the largest
consumer of ketchup, globally. Some parts of Europe, like the UK, France, Germany, and
Italy, are significant markets for the consumption of ketchup. In the Asia-Pacific region,
China, Japan, and India are the largest consumers of ketchup. Consumption of ketchup is
increasing steadily in the developing countries of Africa, South America, and Asia-Pacific.
Competition in the ketchup market is reported to be huge, mostly in the developed countries.
The global ketchup market is a concentrated market, with around 90% of the share controlled
by seven major players. “Heinz” is the largest player in the industry, with a market share of
80% and 60% in Europe and the USA, respectively. Such broad presence and market control
make Heinz the global leader, currently. Tomato ketchup is the most popular type; hence all
big players are highly active in this market segment. Product launches, innovative ketchup

5 globenewswire.com

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flavors, and mergers and acquisitions with smaller level players have been the strong
business strategies for ketchup market growth.6
 Revenue in the Tomato Ketchup segment amounts to US$19,942m in 2019. The
market is expected to grow annually by 2.0% (CAGR 2019-2023).
 In global comparison, most revenue is generated in United States (US$8,382m in
2019).
 In relation to total population figures, per person revenues of US$2.71 are
generated in 2019.
 The average per capita consumption stands at 1.2 kg in 2019.
Global Ketchup Market Segment by Manufacturers 7
The ketchup market is fragmented owing to the presence of few international and regional
players. Ketchup manufacturers compete intensely in terms of innovation, price, quality,
brand image, and distribution and the intensifying competitive environment is influencing
vendors to offer different and unique products. To attain a competitive advantage, the
ketchup manufacturers must distinguish their products and cater to the changing consumer
demands. The ketchup market is fragmented owing to the presence of few international and
regional players. Ketchup manufacturers compete intensely in terms of innovation, price,
quality, brand image, and distribution and the intensifying competitive environment is
influencing vendors to offer different and unique products. To attain a competitive advantage,
the ketchup manufacturers must distinguish their products and cater to the changing
consumer demands.
The leading vendors in the market are:
 The Kraft Heinz Company

 Nestle
 ConAgra Foods

 Del Monte
 General Mills
 Kissan

On the basis of region, the global Tomato Paste

market is segmented into, North America, Latin
America, Western Europe, Eastern Europe, Asia
Pacific excluding Japan, Japan and Middle East and
Africa. North America and Western Europe are
expected to account for significant revenue shares
in the global tomato paste market over the forecast
period. In European countries tomato is one of the
most important vegetable consumed accounting for
an approximate share of 19% as the largest fresh vegetable crop. Per capita tomato
consumption is high in countries such as, Germany, Spain and France. Household use of

6 mordorintelligence.com
7 reuters.com

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tomato is increasing in countries such as China, India, Africa and U.S. where consumers use
it for making several recipes thus, contributing towards escalating market revenues of tomato
over the forecast period.
Tomato paste manufactured in China enjoys great popularity in the world market because of
its high quality. Also, growing manufacturer’s efforts to increase their tomato production
capabilities is expected to fuel the tomato paste market growth over the forecast period.
Tomato paste is a concentrated long shelf-life product used globally as an ingredient in
preparing meals and food products. It is produced by removing the seeds, skin and pulp of
tomatoes to create a tomato juice which is then thickened, normally by evaporation. 8
Tomato paste is used as an ingredient in cooking and food preparation in three different
contexts:

 It is used in the household where it is valued for thickening and adding depth of
flavour to sauces and stews. For household consumption it is normally purchased
from supermarkets or small shops in the form of a tube of 100-200g.

 It is used for the same purposes in the catering and restaurant industry, where it can
be purchased from wholesalers in bulk quantities of several kg.

 Tomato paste is also widely used in the industrial manufacturing of other food
products - either recipe components for household or catering use, such as sauces;
or finished products such as ready meals, pizzas, soups and so on.

Some of the key players offering Tomato Paste include; Conagra Brands, Del Monte Foods,
Inc., Olam Spices & Vegetables Inc., Los Gatos Tomatos, Cento Fine Foods, Muir Glen
Organic, Vigo Importing Co., PANOS brands, Bionaturae, LLC and others.

Tomato puree is a thick liquid made by removing the

stems and leaves of tomato, which is then mashed
with or without the skin being removed to reach a
desired consistency. Tomato puree has a thicker
consistency which constitutes the major difference
between tomato sauces and puree. The puree has
a profound flavor and is widely used for adding
flavor. Tomato puree is used for flavor purposes in
soups, stews, sauces, or any other dish. Canned
tomato puree can be easily found in supermarkets and other food stores.
Tomato puree is not just used for its flavor but for its nutritive value as well. Tomato is
considered to be a rich source of lycopene which helps in reducing free radicals. Tomato
puree extract contains antioxidants including lycopene, beta-carotene, vitamin E and other
phytonutrients, which is associated with reducing blood pressure and improved immune
function. Tomato puree is rich in Vitamin C, which is known for its immune enhancing
properties.
Tomato Puree Market Segmentation
Tomato puree is segmented on the basis of source, distribution channel and region. On the
basis of source, it is segmented as organic, conventional. The organic tomato puree has
gained significant attention from health conscious consumer and manufacturers have also

8 localnexus.org

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incorporated organic purees in the final product, this is subsequently acting as a driving tool
for the tomato extract market growth

Based on distribution channel tomato puree market is segmented as,

hypermarkets/supermarkets, online stores, convenience stores and other retail formats.
Sales from supermarkets in Europe has witnessed growth in recent years, this is due to influx
of private label brands.

On the basis of region, the tomato puree is segmented into Asia Pacific, North America,
Japan Western Europe and Middle East. Countries such as China, India, U.S and Turkey are
some of the major producers of tomatoes globally. Tomato puree market is expected to
witness a high growth rate in the Western European region attributed to its establishment of
high end processing industries. The tomato puree market in Japan is also expected to
represent an expansion in the market growth in the forecast period.

2.2 Indian scenario

The Indian ketchup market is valued at 220 crores. The top ketchup Brands in India are
Maggi, Kissan and Heinz. Nestle's Maggi leads the Indian ketchup market with a market
share of 37 per cent followed by Hindustan Unilever Limited product Kissan with a market
share of 29 per cent and Heinz with a market share of 10 per cent. There are also a host of
local ketchup brands that account the rest of the market share of the Indian ketchup industry.
Top Ketchup Brands in India
• Kissan
• Heinz
• Maggi
• Tops
• Chingz
• Del Monte
• Cremica
• Nature’s best
• Smith and Jones
Maggi and Kissan were the major ketchup brands. Heinz entered Indian market after
liberalization during 1970’s and 80’s which offered tough competition and many local players
like Tops, Cremica etc., are also giving tough competition to Maggi and Kissan.

The ketchup market in India is largely dominated by Nestle’s Maggi that owns 37% of the
market & the Kissan that owns 29%, and Heinz holds a total market share of around 10%

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Figure 2: Tomato Ketchup Market players

Others , 24%
Maggi, 37%

Heinz, 10%

Kissan, 29%

Maggi Kissan Heinz Others

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Chapter 3- Process Description and
Technology

Description of a typical tomato puree/concentrate/ ketchup processing operation is described

in this section. The process described herein is a “batch type”.

Reception Section:
Fresh tomatoes would be received at reception section and passed on to the fruit washing
grading section. Tomatoes from reception will be washed in washing section to remove outer
dirt and foreign matter from the fruit skin. Washed tomato would be feed to the inspection
cum sorting conveyor where unwanted, damaged tomatoes would be separated out
manually. Major equipment will be, Infeed conveyor, Tomato Washer, Sorting Table

Processing and Juice Extraction Section:

Washed graded tomatoes would be passed on to the fruit juice extraction and processing
unit. From fresh tomatoes the juice will be extracted out in juice extraction system. The outer
skin, seed and fiber of fruits would be separated out from extraction machine and then
disposed manually. Extracted juice is passed to the heat treatment to avoid the quality
degradation. Again it is fine pulped in Pulper cum finisher to get finished juice. This juice will
go for further processing to juice concentrate to concentrate it to 12 Brix for tomato puree, 14
Brix for tomato ketchup or 28-30 Brix for tomato paste.
Major equipment will be Tomato Juice Extractor, Receiving Tank, Transfer Pump, Pulp
Preheater (Shell Tube Heat Exchanger), Pulper cum Finisher, Receiving Tank, Transfer
Pump, Pulp Storage cum Balance Tank.

Evaporation Section: Major equipment will be Effect scrapped kettle for evaporation for
tomato paste.

Packing Section: Glass Bottle Packing for Tomato ketchup and sauce.

Tomato Ketchup Processing

 Normally tomato ketchup is being produced from existing tomato Puree during the
off season, rarely is produced on-line from fresh tomatoes.
 In a separate tank the sugar syrup preparaton takes place. Sugar powder is added
by a warm screw conveyor and pre-warmed water is fed and controlled by magnetic
flowmeter. The two products are mixed in the tank up to a concentration of 50/55 Brix
and then sent to a storage tank previous filtration through paper filters.
 Storage tanks are for seen for vinegar and demineralized water. Finally all these
ingredients are added in the quantity required by the recipies in the mixer/heater
where are put directly also the microelements, such as spice, peppers ecc.
After a suitable mixing and cooking time the final product is discharged into an
insulated storage tank.
 The final mixture (ketchup) can now be pumped by a homogenizer through a tube-
in-tube heat exchanger in order to be pasteurized at 99/104°. After this, the ketchup
is deaerated into an under vacuum deaerator from which product will come out at

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 about 88-90°C ready for hot fill into the final container (glass bottles, plastic bottles,
etc).
 If the chosen container for final product cannot be hot filled at 88-90°C cold filling
process shall then be used. In this case ketchup from deaerator shall be cooled down
at 32-37°C by an aseptic tube-in-tube heat exchanger then pumped to the “clean
room” for filling into the appropriate containers.
 It is recommended that all heat exchangers are made of special stainless steel of
titanium alloy or high molybdenum content due to the severe corrosion properties of
the ketchup.

Packaging:

Very common is the packaging in bottles/cans.

 In case of plastic, multilayer polyester/polypropylene containers are advisable, more

expensive, but performing better filling at temperature up to 95°C and providing
better oxygen barrier. The filling is performed by a specific volumetric filler equipped
with recirculation system in order to keep at the right temperature the product during
production. After the capping phase the bottles go to a tunnel pasteurizer where it is
recommended to hold at about 80 – 85°C for 7 – 8 minutes and then cooled at 45°C
and dried ready for labeling and for final packaging in carton or shrink-wrapped film.
 Packing Section: Glass Bottle Packing for Tomato Ketchup.

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Figure 3: Generic process flow diagrams Tomato Ketchup Line

Tomato

Washing

Sorting and
Grading

Crushing

Pulper and
Finisher

Pre-Heating

Storage

Concentration

Tomato Puree

Tomato Puree
Pumping station

Mixer and
Heater
Sugar Syrup Preparation Salt Preparation Tank
Deaeration

Sugar Syrup Tank Vinegar Tank

Homogenizer
/Pasteurization

Tomato
Ketchup/Sauce

Bottel Filler

Capper

Bottel
Packaging

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 Fruit & Vegetable Washer Inspection conveyor Screw Feeder

Fruit Miller & crusher

Bottle Filling Machine Jacketed Kettle

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Chapter 4 - Technology Options
Available

We propose a suitable technology option available for Tomato Ketchup processing. This
option includes a Tomato processing plant of with input capacity of 500 Kg/hour tomato.

4.1.1. Business Assumption

The business plan has assumed that the business model operates under Captive Mode. The
Captive Model involves direct selling of Tomato Ketchup products such as Tomato Ketchup
in the market after processing the raw Tomato.

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Table 4: Assumptions for Operating Tomato Processing Unit

Tomato processing Units Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Hours in a Day 8
Number of Shifts per day Units 2 2 2 2 2 2 2 2 2
Installed capacity QPH 5 5 5 5 5 5 5 5 5 5
Tomato processing per shift QPD 40 40 40 40 40 40 40 40 40 40
No. of days of operation no. 150 150 150 150 150 150 150 150 150
Capacity Utilization (%) percentage 70% 75% 80% 80% 80% 80% 80% 80% 80%
Tomato processing Quintals 8,400 9,000 9,600 9,600 9,600 9,600 9,600 9,600 9,600
Processing Loss to make
juice (including loss during
sorting, grading) 20% 1,680 1,800 1,920 1,920 1,920 1,920 1,920 1,920 1,920
Tomato Juice (4 Brix) Quintals 6,720 7,200 7,680 7,680 7,680 7,680 7,680 7,680 7,680
Processing loss to make
puree (2/3 water
evaporation) 67% 4,480 4,800 5,120 5,120 5,120 5,120 5,120 5,120 5,120
Tomato Puree (12 Brix) Quintals 2,240 2,400 2,560 2,560 2,560 2,560 2,560 2,560 2,560

Product mix
Puree % 20% 20% 20% 20% 20% 20% 20% 20% 20%
Ketchup % 40% 40% 40% 40% 40% 40% 40% 40% 40%
Sauce % 40% 40% 40% 40% 40% 40% 40% 40% 40%

Final Product
Puree Quintals 100% 448 480 512 512 512 512 512 512 512
Ketchup Quintals 43% 385 413 440 440 440 440 440 440 440
Sauce Quintals 44% 394 422 451 451 451 451 451 451 451

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Table 5: Operational Cost Assumptions
Particulars Units YOY Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Volume procured
Tomato Quintals 8400 9000 9600 9600 9600 9600 9600 9600 9600
Sugar for ketchup
and sauce (6.5% of Quintals
Tomato juice) 322.6 345.6 368.6 368.6 368.6 368.6 368.6 368.6 368.6
Other ingredients
for ketchup and
Quintals
sauce (2.5% of
juice) 5% 134.4 144.0 153.6 153.6 153.6 153.6 153.6 153.6 153.6

Cost of Tomato (@
Rs.
Rs. 5/kg) 4,200,000 4,725,000 5,040,000 5,040,000 5,040,000 5,040,000 5,040,000 5,040,000 5,040,000
Cost of Sugar (@
Rs.
Rs. 25/kg) 806,400 907,200 967,680 967,680 967,680 967,680 967,680 967,680 967,680
Cost of other
ingredients (@ Rs. Rs.
20/kg) 268,800 302,400 322,560 322,560 322,560 322,560 322,560 322,560 322,560

Table 6: Selling price assumptions

Particulars Units YOY Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Tomato Puree (1
kg bottle) Rs./bottle 65.00 68.25 71.66 75.25 79.01 82.96 87.11 91.46 96.03
Tomato Ketchup (1 5%
kg bottle) Rs./bottle 85.00 89.25 93.71 98.40 103.32 108.48 113.91 119.60 125.58
Tomato Sauce (1
kg bottle) Rs./bottle 100.00 105.00 110.25 115.76 121.55 127.63 134.01 140.71 147.75

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4.1.2. Project Cost
The total cost of the project is estimated at Rs.31.49 Lakhs, out of which civil cost constitutes
Rs 5.04 Lakhs, plant and machinery constitutes Rs.19.22 Lakhs, utilities & support of Rs.
3.56 Lakhs, Interest during construction of Rs. 0.67 Lakhs and Preliminary & pre-operating
expenses of Rs. 3 Lakhs. The detailed description of each component of project cost is
depicted in the tables below.
Table 7: Project Cost Summary’

Particulars Grand Total (Rs. Lakh)

Civil Works 16.80

Plant & Machinery 37.11
Utilities 9.24
Interest During Construction 2.87
Preliminary & Pre-operative expenses 3.00
Total Project Cost 69.02
Note: Land cost is not considered in this business model

4.1.3. Proposed Means of Finance

The promoter’s equity in the project is Rs 34.51 Lakhs which is 50% per cent of the total
project cost. The term loan considered for the project is estimated at Rs. 34.51 Lakhs which
is 50 per cent of the total project cost.
Table 8: Means of Finance Summary
Particulars Total (Rs. Lakh)
Total Project Cost 69.02
Term Loan 34.51
Promoters Contribution 34.51
Note: We have not considered grant in aid being offered by National Horticulture Board or any other government
entity/ institutions. Which may have an impact on the overall profitability of the project in a positive way.

4.1.4. Civil Work

The total cost of civil work has been estimated to be Rs 16.80 lakhs. Cost of civil work
comprises of the built-up cost of Tomato machine plant including small area of raw material
storage & finished goods storage. The total cost of technical civil works has been arrived at
on the basis of the estimates provided by the Chartered Engineer (Civil) and are
substantiated with the requisite certificate.
Table 9: Civil Cost Summary

Civil Cost Total Area Required Total Civil Cost

(SQM) (Lacs)
Tomato Processing Machine 200 16.8

4.1.5. Utilities and other project components

The total cost of Utilities has been estimated to be Rs 3.57 lakhs, which includes water
storage of 10,000 LT/hour, generator set of 30 KVA, weighing scale, and electrical wires &
panel.

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Table 10: Utilities and other project components

Overall Cost
Utility & Support Infrastructure (No. of Units)
(INR Lacs)
Transformer/ Electrical Wires & Panel 1 1.20
Water Storage 1 0.60
Generator 1 6.24
Weighing Scale 4 1.20
Total Utility & Support 9.24

4.1.6. Plant and Machinery

The total cost of plant and machinery has been arrived on the basis of quotation received
from various suppliers of equipment and machinery. The total cost of P&M is considered as
Rs. 37.11 Lakhs (including GST). The following table captures the components under Plant
& Machinery.
Table 11: Plant and Machinery
Plant & Machinery Total Cost (Rs. Lacs)
Fruits Washing Machine 5.83
Sorting/Inspection Conveyor 2.16
Screw Feeder 3.24
Stream Jacketed Kettle 1.08
Transfer Pump With Hopper 1.08
Transfer Pump 0.97
Filing Tank 1.15
Lab Equipment 2.40
Pulp Collection Tank 0.43
Fruits Mill Crusher 0.43
Transfer Pump 1.94
Steam Jacketted Kettle 2.16
Homogenizer 4.32
Pulper and Finisher 2.70
Crown Corking Machine 0.13
Double Head Pneumatic Filler 2.16
Air Compressor 0.60
Steam Boiler 4.32
Total 37.11

Rajasthan Agricultural Competitiveness Project 20

4.1.7. Income Statement
The below mentioned is the income statement for processing line of Tomato ketchup and sauce.
Table 12: Income Statement
Particulars (Amount Rs. Lakh) Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Tomato Puree 29.12 32.76 36.69 38.53 40.45 42.47 44.60 46.83 49.17
Tomato Ketchup 32.75 36.84 41.26 43.33 45.49 47.77 50.16 52.66 55.30
Tomato Sauce 39.42 44.35 49.67 52.16 54.77 57.50 60.38 63.40 66.57
Total Income 101.29 113.95 127.63 134.01 140.71 147.75 155.13 162.89 171.03

Raw Material
Tomato 42.00 47.25 50.40 50.40 50.40 50.40 50.40 50.40 50.40
Sugar 8.06 9.07 9.68 9.68 9.68 9.68 9.68 9.68 9.68
Other ingredients 2.69 3.02 3.23 3.23 3.23 3.23 3.23 3.23 3.23
Power 3.73 3.92 4.11 4.32 4.53 4.76 5.00 5.25 5.51
Packing Cost 12.28 13.81 15.47 16.24 17.05 17.90 18.80 19.74 20.73
Transportation 4.20 4.73 5.29 5.56 5.83 6.13 6.43 6.75 7.09
Water 0.21 0.35 0.37 0.39 0.41 0.43 0.45 0.47 0.50
Total Direct Expenses 73.17 82.15 88.54 89.81 91.13 92.52 93.98 95.52 97.13

Gross Profit 28.13 31.80 39.09 44.20 49.58 55.22 61.15 67.37 73.91
Manpower 10.75 12.10 13.55 14.22 14.94 15.68 16.47 17.29 18.15
Repairs & Maintenance 0.95 0.99 1.04 1.10 1.15 1.21 1.27 1.33 1.40
Insurance 0.54 0.57 0.59 0.62 0.66 0.69 0.72 0.76 0.80
Selling & Distribution Expenses 2.03 2.39 2.81 3.10 3.42 3.77 4.16 4.58 5.05
Total In-Direct Expenses 14.26 16.05 18.00 19.05 20.16 21.35 22.62 23.97 25.41

EBITDA 13.86 15.76 21.08 25.16 29.42 33.87 38.53 43.41 48.50

Depreciation for Civil Works 1.68 1.51 1.36 1.22 1.10 0.99 0.89 0.80 0.72
Depreciation on P&M 5.57 4.73 4.02 3.42 2.91 2.47 2.10 1.78 1.52
Depreciation on Others Components 0.40 0.63 0.59 0.54 0.51 0.47 0.44 0.40 0.25

Rajasthan Agricultural Competitiveness Project 21

 Particulars (Amount Rs. Lakh) Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Others (Amortization - IDC, Pre-ops, Contingency) 1.17 1.17 1.17 1.17 1.17 - - - -
Sub-Total 8.82 8.05 7.14 6.36 5.69 3.93 3.43 2.99 2.49
EBIT 5.04 7.71 13.94 18.79 23.73 29.94 35.11 40.41 46.01

Interest on Term Loan 3.12 2.68 2.19 1.66 1.07 0.43

Interest on Working Capital - Normal 0.87 0.98 1.12 1.20 1.28 1.37 1.46 1.55 1.65
PBT 1.05 4.04 10.62 15.93 21.37 28.14 33.65 38.86 44.36

Tax 0.27 1.05 2.76 4.14 5.56 7.32 8.75 10.10 11.53
PAT 0.78 2.99 7.86 11.79 15.81 20.82 24.90 28.76 32.82

4.1.8. Balance Sheet

The below mentioned is the balance sheet statement for processing line of Tomato Ketchup and Sauce.
Table 13: Balance Sheet
TOTAL LIABILITIES (Rs. Lakh) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

A) Promoters Funds
Capital Contribution 35 35 35 35 35 35 35 35 35 35
PAT 0 1 3 8 12 16 21 25 29 33
PAT after appropriations 0 1 4 12 23 39 60 85 114 147
Sub-Total 35 35 38 46 58 74 95 119 148 181
B) Debt
Long Term Loans
Term Loan - Outstanding 35 30 25 20 14 7 0 0 0 0
Sub-Total 35 30 25 20 14 7 0 0 0 0
C)Current Liabilities
Creditors - others 0 1 1 1 1 1 1 1 1 1
Creditors - Raw Material 0 2 3 3 3 3 3 3 3 3
Bank Finance - Working Capital 0.00 6.01 7 7.75 8.28 8.85 9.44 10.06 10.71 11.39

Rajasthan Agricultural Competitiveness Project 22

 Total Current Liabilities 0 9 10 12 12 13 13 14 15 16

TOTAL LIABILITIES 69 75 74 77 84 94 108 134 163 197

TOTAL ASSETS
D)Land 0 0 0 0 0 0 0 0 0 0
Fixed Assets
Gross Block (Civil + P&M) 24 63 56 49 43 37 33 29 26 23
Purchases 39 0 0 0 0 0 0 0 0 0
Less: Depreciation 0 8 7 6 5 5 4 3 3 2
Sub-Total 63 56 49 43 37 33 29 26 23 20

E)Current Assets
Net Debtors 0 5 5 6 6 6 7 7 7 8
Cash & Bank Balance 0 5 11 21 33 48 66 94 126 161
Stock 0 5 5 6 6 7 7 7 8 8
Sub-Total 0 14 22 32 45 61 79 108 140 177
F)IDC, Pre-ops written off 6 5 4 2 1 0 0 0 0 0

TOTAL ASSETS 69 75 74 77 84 94 108 134 163 197

4.1.9. Financial Indicators

Table 14 Financial Indicators
Project IRR 24.10%
NPV (Rs. Lakhs) 40
Pay Back Period 4 years 8 months
DSCR (Average) 2.29

Rajasthan Agricultural Competitiveness Project 23

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