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MODEL DETAILED PROJECT REPORT

READY TO SERVE FRUIT JUICE

Disclaimer: This is just a model DPR prepared based on assumptions for reference purpose
only. The project cost and financial projections may vary project to project as per technology
selection, nature of civil work, price of raw materials etc.
PROJECT AT A GLANCE..............................................................................................3

INTRODUCTION .............................................................................................................4

1. BACKGROUND..............................................................................................5

2. PROJECT BACKGROUND ...........................................................................7

3. ORGANIZATIONAL AND PROMOTERS DETAILS .....................................7

4. PROJECT DESCRIPTION & FLOW SHEET: ...............................................9

5. PROCUREMENT STRATEGY OF RAW MATERIAL & OTHER INPUTS . 11

6. MARKETING STRATEGY ........................................................................... 11

7. LIST OF STATUTORY CLEARANCES REQUIRED .................................. 12

8. LAND DETAILS............................................................................................ 12

9. PROJECT COST .......................................................................................... 13

11. TECHNO-COMMERCIAL VIABILITY OF THE PROJECT ......................... 16

12. FINANCIAL ANALYSIS ............................................................................... 16

13. PROJECT IMPACT ...................................................................................... 27

Project at a Glance
1. Name of the Unit :
2. Constitution :
3. Date of Incorporation :
4. CIN :
5. PAN :
6. GST
7. Registered Office :

8. Factory Address :

9. Name of Directors :

10. Type of Unit :

11. Nature of Project : RTS Beverages
12. Installed Capacity at 100% : 500 Ltr/hr.
Capacity Utilisation
13. Cost of the Project : 240 Lakh
14. Promoter’s Contribution :

15. Proposed Term Loan :

16. Requirement of Cash Credit :

Limit
17. Proposed Employment : Direct Employment - 14 nos.

18. Power Load : 200 KvA

Introduction
Bihar is seventh largest economy in India in terms of food production and produces different kinds of
cereals, pulses, oilseeds and cash crops.As a traditional foodgrain economy, the major food crops grown
in Bihar are rice, wheat, maize and pulses. The State has has recorded an increase in production of
cereals from 143.21 lakh tonnes in 2017-18 to 158.58 lakh tonnes in 2018-19 which is an increase of 4.21
percent. This is due to high productivity, which grew from 2328 kg per hectare in 2014-15 to 2636 kg per
hectare in 2018-19 with a registered growth of 4.31 percent. The production of wheat increased from a
modest quantum of 35.70 lakh tonnes in 2014-15 to about 64.66 lakh tonnes in 2018-19. For maize, the
production increased from24.79 lakh tonnes to 31.94 lakh tonnes during the same period. Though the
area under maize hassteadily increased in Bihar, there are considerable fluctuations in yield leading to
instability inproduction.

Horticulture has emerged as one of the most important agricultural enterprises in Bihar in the last two
decades, as it offers a wide range of opportunities for farmers to diversify their cropping pattern to include
fruits, vegetables, flowers, spices, plantation crops, medicinal and aromatic plants. The increasing
diversification provides opportunities for absorption of labour and earning remunerative returns to the
farmers. The horticultural products form an important component of food and nutritional security in Bihar.
To meet the growing demand for affordable and high-quality fruits in local, national, and international
markets, this sector is experiencing substantial competition. Since horticultural crops are highly
perishable and seasonal in nature, they require adequate post-harvest infrastructure. The State
Government is promoting horticulture sector in a big way in Bihar to help the farmers.

The total production of fruits in Bihar increased from 41.05 lakh tonnes in 2016-17to 42.29 lakh tonnes in
2018-19, registering an annual growth rate of 4.9 percent. Except pineapple, all other fruits registered
growth in production in the last three years. The state is performing well in production of litchi, amounting
to 3.07 lakh tonnes cultivated in an area of 0.36 lakh hectares in2018-19. This was possible due to
increase in both its acreage and productivity. Substantial increase in production was observed for banana
(2.1 percent), papaya (4.1 percent), mango (3.5percent), guava (8.2 percent), watermelon (10.7 percent),
and muskmelon (11.8 percent) during2016-17 to 2018-19.

Realizing the potential that exists in agricultural and horticultural processing in the state, Govt. of Bihar
has launched a “Bihar Agri Investment Promotion Policy 2020”in the state. This Scheme provides support
for setting up food processing units in the state. This is aimed at addressing various constraints like
infrastructure, technology, skills and marketing faced by the food processing sector in the state and to
help them compete with industry standards at national and international level.

There has been an appreciable increase in the export of processed foods which includes fruit juices. With
the fast growth of the urban areas and the growing living standards of the Indian people, there is a good
potential to develop this industry in small-scale sector. Considering the potential market opportunity of
such units, this 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 1.

1
Bihar Economic Survey 2019-20
 1. Background

Definition:

Packaged fruit juice is obtained mechanically by squeezing or deliquescing different types of fruits
or prepared through pulp extract of fruits. Every fruit juice has its own flavor, taste and health
benefits e.g. watermelon hydrates body, lemon juice provides necessary Vitamin C to increase
immunity and avocado juice provides natural energy to the body. Different types of packaged fruit
juices are of mango, orange, lemon, pineapple, litchi, guava, apple, etc.

Global Scenario

Unlike last decade the consumption of carbonated soft drink, flavoured drinks, colas etc has
witnessed slack in consumption mainly due to high sugar
content, use of artificial ingredients for colouring, flavors Predicted growth of RTSFB
etc which may have ill effects in the body. It is evident that
$ 173 B
there has been a gradual shift towards consumption of
natural fruit juices/drinks. The global market for fruit has
already reached a volume of 45.4 Billion litres by the year
2018, with a handsome CAGR of approx. 2% between
2011-2018. It is predicted that this market may further
climbed a staggering figure of50.6 billion liters by 2024. It
is going to be one of the profitable sectors in the world
with projection of a market of Global $90 billion by 2025 at
2019 2024
a spectacular CAGR of 6.2% from 2017 to 20252.

The driving forces of the growth of RTS juice worldwide are:

Increase in demand of healthy drinks

Rise in demand for high scale of volume in beverage industry

Decrease in demand of colas, carbonated drinks due to high sugar content

Preservative free and sugar-free fruit juice

Growing popularity of cold pressed juice

Indian Scenario

India cultivates multiple variety of high-quality fruits like mango, orange, pineapple, litchi, guava,
lemon etc round the year and hot to moderate weather conditions in India propels high demand of
fruit juice in the country. The sector is growing year on year and the present revenue from the
sector amounts to US$2,106m in 2020, and the market is likely to prosper at 8.3% (CAGR 2020-

2
https://agriexchange.apeda.gov.in/Weekly_eReport/Fruit_Juices_Report.pdf
 2025).The market's largest segment is other juice, Juice Mixtures & Smoothies with a market
volume of US$1,216m in 20203.

Bihar

Bihar is predominately agrarian State with almost 75 percent of people depend on agriculture for
their livelihood. Horticulture has emerged as one of the most important activities to boost
agricultural enterprises in Bihar in the last two decades, as it offers a wide range of opportunities
for farmers to diversify their cropping pattern to include fruits, vegetables, flowers, spices,
plantation crops, medicinal and aromatic plants. The increasing diversification provides
opportunities for absorption of labour and earning remunerative returns to the farmers. The
horticultural products could be an important component of food towards nutritional security in
Bihar. To meet the growing demand for affordable and high-quality fruits in local, national, and
international markets, this sector is experiencing substantial competition. Since horticultural crops
are highly perishable and seasonal in nature, they require adequate post-harvest infrastructure.
The State Government is promoting horticulture sector in a big way in Bihar to help the farmers.

The total production of fruits in Bihar increased from 41.05 lakh tonnes in 2016-17 to 42.29 lakh
tonnes in 2018-19, registering an annual growth rate of 4.9 percent. Except pineapple, all other
fruits registered growth in production in the last three years. The state is performing well in
production of litchi, amounting to 3.07 lakh tonnes cultivated in an area of 0.36 lakh hectares in
2018-19. This was possible due to increase in both its acreage and productivity. Substantial
increases in production was observed for banana (2.1 percent), papaya (4.1 percent), mango (3.5
percent), guava (8.2 percent), watermelon (10.7 percent), and muskmelon (11.8 percent) during
2016-17 to 2018-19.

Source: website of MoFPI

3
https://www.statista.com/outlook/20030000/119/juices/india
 2. Project Background

The unit has proposed to set up a 500 Ltr/hr. RTS Juice Processing unit at XYZ location. The main
product is RTS Fruit Juice.

The main objective of the fruit juice processing is to preserve the perishable fruits in its original form that
may be stored and supplied to different markets locally or nationally throughout the year. Processing also
helps in changing fruits in forms which are easy to use and convenient to prepare any other products.

The fruits that will be used for processing not only help in reducing wastage during handling however it
also helps in adding nutrition and consumable properties of the fruits. There has been tremendous
increase in consumption of packaged fruit drinks due to changing lifestyles and consumption habits of
people. The product is even gaining popularity in rural and smaller towns due to its convenience and easy
to consume as well as the lower price tag with handy packaging. After processing, the products would be
supplied to the market through distributors/ wholesalers/retailers.

Current status of the unit:

a. Items to be manufactured: RTS Beverage (Juice)

b. Capacity of the plant: 500 Ltr/hr.

c. Source of power generation/electricity: Electricity form BSPHCL/SBPDCL, DG Set

d. Source of water supply: Own Borewell

e. Connectivity to road/railways: NH/SH details along with distance

f. Mode of transport: Pickup/Truck/Others

g. Market: Details of local market/other market

h. Employment Generation:14 nos.

i. Marketing:

j. Waste disposal: ETP/STP

3. Organizational and Promoters Details

Organizational details

The M/s XYZ is a proprietorship/partnership/private company is associated with fruit trading for about 10
years. The unit was incorporated on ……………… as private limited company under Company’s Act. The
authorized capital of the company is Rs. ….. lakh and the paid-up capital is Rs. ….. as on ………….The
details of the unit as per MCA website (only for private/public ltd. companies) are given below:

Company Master Data

CIN
Company / LLP Name
 Company Master Data
ROC Code
Registration Number
Company Category
Company Sub-Category
Class of Company
Authorized Capital(Rs)
Paid up Capital(Rs)
Number of Members(Applicable in case of
company without Share Capital)
Date of Incorporation
Registered Address

Email Id
Whether Listed or not
Date of last AGM
Date of Balance Sheet
Company Status(for e-filing)
Directors/Signatory Details
DIN/PAN Name Begin date End date

Promoters’ Background

The unit is a proprietorship/partnership/private limited company/ firm and the

proprietor/partners/promoters of the firm has experience in trading of fruits and vegetables and is
associated processors. He/They has/have identified fruit juice industry as a profitable business seeing its
ever-increasing demand in the local market as well market in the neighboring districts and States. Brief
profile of the proprietor/partners/promoters is given below:

Brief profile of promoters is given below:

a) Mr. ABC
b) Mrs. XYZ
c) Mr. DEF

Networth: The details of the networth of the unit is given below:

Particulars Rs. In lakh

Movable assets A
B
C
Subtotal (A)
Immovable assets A
B
 C
Subtotal (B)
Total

The total net-worth is more than the proposed grant of the unit.

4. Project Description & Flow Sheet:

The unit has proposed to set up a 500 Ltr/hr. RTS Juice Processing unit at XYZ location. The main
product is RTS Fruit based beverages.

The ready-to-serve beverages as per FSSA specifications should contain at least 10 percent fruit content
and not less than 10 percent TSS besides 0.3% acid maximum as citric acid. The levels of permitted
preservatives include 70 ppm (maximum) for sulphur dioxide and 120 ppm (maximum) for benzoic acid.
The total plate count and yeast and mold counts should not exceed, to 50.0 cfu/ml and 2.0 cfu/ml,
respectively. The Coliform counts should be nil in 100 ml beverage samples.

Since these beverages are consumed as such without dilution, hence are termed as Ready-to-serve
beverage. Most packaged fruit beverages belong to this category. Wide range of fruits including mango,
citrus fruits, berries, litchi, guava, pineapple, grapes etc. are preferred for RTS beverages. Required
amount of sugar, acid, stabilizer, colouring and flavouring ingredients are added in juice or pulp along with
water and the mixture is blending properly, filtered if desired. The RTS mix is pasteurized (80-90 degree
C) in bottle (20-30 min), continuous juice pasteurizer (few seconds to one minute) and cooled
immediately. Nowadays, UHT processing of RTS beverages is quite popular because of longer shelf-life
and less loss of nutrients during processing.

The amount of fruit juice or pulp may vary according to fruit and cost effectiveness. The presence of
oxygen in headspace often leads to oxidation resulting in off-flavour and loss of nutritive value, hence
antioxidants such as ascorbic acid is often added in RTS beverages. Besides it, colour and flavour
ingredients which are stable to heat, and oxygen are preferred.
Manufacturing Process
 5. Procurement strategy of raw material & other inputs
Bihar produces various kinds of fruits and vegetables in large quantity. Among fruits, the state is the
largest producer of litchi, third largest of pineapple and fourth largest of mango in India. The major fruit
producing districts in the state overlap with major vegetable producing ones. While Muzaffarpur and
Vaishali districts lead in litchi and banana, the districts of Darbhanga, Vaishali, East Champaran and
West Champaran are ahead in mango production. Similarly, Rohtas and Bhojpur lead in guava
production. Normally prices of fruits and vegetables at the village level are much lower compared to that
in the main wholesale market. This situation leads to farmers getting much less return on their produce.

Mango is an important fruit besides mango, other important crops include litchi, guava and banana, which
are grown in abundance in the district.

Proposed district produces Guava, Mango, Litchi, Banana, Lemon and many other fruits like Karaunda,
Lotus Stem etc. District also produces vegetables in huge quantity, specially, Kole crops, Tomato, Carrot,
Chilli, which will be required for the unit in manufacturing of fruit-based products. During the season Fruit
required by the unit will be procured directly from the farmers. Many small adhats (auction centers)
sprang in the villages that collect the vegetables from the farmers and is further sold/ dispatched to other
major market/ customers in the state and other state. In addition to this unit would also propose to sign
contracts with the local farmers to ensure timely supply of the fruits.

Backward Linkages:

The promoter has well established backward linkages for its proposed units and it is expected that the
raw material can be procured from the local area. Raw materials are mainly Mango/Pineapple/Litchi,
sugar, preservatives etc.

Forward Linkages

Food product such as Mango, pineapple, litchi juices has a great demand in the Town as well as in the
rural area at present there are only few units who are manufacturing RTS beverages and other unites are
very small capacity and unable to fulfill the Market demand.

6. Marketing strategy
The rising number of health-conscious consumers is giving a boost to RTS juices; it has been observed
that consumers are shifting to RTS as they consider the same as a healthier breakfast/snack option.
Mango drinks are popularly used in most urban households.

Today markets are flooded with a large variety of juices e.g., mango, apple, guava, litchi, grapes,
pineapple etc. The main reason for increased consumption is rising level of health consciousness among
consumers and parents. It is believed that these drinks provide superior nutrition because of their fortified
status. Factors like preferred choice of children, easy availability, convenience, naturalness and
marketing strategies have given RTS drink industry a booming growth.

With changing lifestyles and increase in disposable incomes, the demand for easy-to- prepare drink is
also increasing. Besides consumption in the households, it is served in hotels, restaurants, clubs, airlines
and railways etc.

Quality should be emphasized at each step right from the beginning to the marketing of the Product. Over
the years, an image of high-quality products should be cultivated.

The effectiveness of distribution coverage and practice is of paramount importance in achieving the
desired RTS juice sales. Understanding of the distribution channels is crucial 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 RTS juice business are from 15 to 20%.
Promoters would appoint distributors in targeted towns of Bihar and surrounding states like West Bengal,
Jharkhand, Uttar Pradesh. Contacts with retailers of similar kinds will be made and products would be
sold in the market with help of them. The product made in this unit will be in the line with top range of
products with better quality at the same time cost effective. Company would be sharing more profits with
the distributors and retailers.

Company will also explore possibility of marketing their produce to retails shops like Big Bazar, Reliance
Trends, Malls etc. It will also try to partnership with local and other hotels and restaurants with good offers
to attract demand of its product. It is assumed that due high quality, cost effectiveness and aesthetic
packaging, sale of products may not face much problems.

7. List of Statutory Clearances Required

A tentative list of clearances that unit would require to take:

Approval and clearances Department/ Offices to be

S. No. Status
required consented
State Investment Promotion Department of Industries
1
Board, Stage – I clearance
Consent to Establish Bihar State Pollution Control
2
Board
3 GST registration Commercial Taxes
4 Change in land use Land Revenue Dept
Electricity Connection North/South Bihar Power
5
Distribution Company Ltd.
6 Registration under Factories Act Office of Inspector of Factories

8. Land Details

Land Details

In order to set up a modern biscuit manufacturing unit of the proposed capacity, a land size of approx. 18
to 20 Decimal would be ideal however this may vary with increase in capacity.

The land proposed for the unit Details of the proposed land is given below:

Sale deed dated 18.10.2016 in the name of M/s XYZ with sale value Rs. 0.00/-

Khata no. Plot no. Area Boundary

Total 19 decimals

The total land area is …… decimal and is in the name of the of the proprietor/firm/company. The
proposed land of the unit is an industrial land as per CLU dated …… Character of the land. The cost of
the land is Rs. ……. lakh/ the proposed land is a leased land for a period of …………. years.
(In case of leased land the minimum lease duration should be 30 years)
9. Project Cost
The proposed project cost of the unit is Rs. 240.00 lakh, the details of the project cost is given
below:

Project Cost
Amount % of total
S. No Particulars
(Rs. Lakh) project cost
1 Land - 0.00%
2 Land and Site Development Cost 10.00 4.17%
3 Plant Area & Building Development Cost 51.00 21.25%
4 Plant and Machinery 134.00 55.83%
MFA (Including DG set, Transformer,
5 25.00 10.42%
Furniture etc.)
6 Preliminary and Pre-operative Expenses 5.00 2.08%
7 Contingency 5.00 2.08%
8 Margin Money for Working Capital 10.00 4.17%
Total 240.00 100.00%

a. Investment in land and land development

▪ Investment in land: Proposed land of the project is taken on long term lease and
hence no cost has been considered towards cost of the land in the project.
▪ Investment in land development work: The total investment in land development work
is Rs. 10.00 lakh which is 4.17% of the total project cost. However as per scheme
guidelines Rs. 6.00 lakh @2.5% of the project costis lowest and hence is
considered for grant-in-aid calculation.

b. Investment in civil work

The Master Plan has been prepared in accordance with the requirement of the project. Based on
the requirement of machines and equipment, the facilities have been planned and user amenities
integrated. The planning of the building structures and infrastructure facilities has been done
keeping in view the entire functional requirements and location of the various units in the site has
been fixed to facilitate smooth process flow. Proposed master plan meets all plot development
and planning norms are as per Standards of the State Govt. Built-up area and open space has
been considered as per local bye-laws applicable for industrial buildings. (Factory building either be
RCC or PEB structure so the layout plan and cost may vary project to project same will be captured in an
applicant’s DPR).

Promoters propose to construct factory shed & building, office, water storage tank, guard room
etc. The proposed estimate of shed & building is Rs. 51.00 lakh, and the details are given below:

Proposed Civil Work details:

Proposed civil work

Area Amount
S. No Component
(sq. ft.) (Rs. Lakh)
1 Factory shed 4000 26.00
2 Office 500 8.00
3 Water storage tank 600 7.00
4 Guard Room 100 2.00
5 Staff Quarter 500 8.00
 Total 51.00

Plant & machinery

The company proposes to install latest and standard machines from the reputed
Indian/International manufacturers. The total proposed investment in plant & machinery is Rs.
134.00 lakh including Effluent Treatment Plant. Details of the proposed machinery is given below:

Plant & machinery*

Amount
S. No. Name ofthe machinery
(Rs. Lakh)

1 RTS juice processing plant 30.00

2 Pet Blowing machine, compressor and mould 20.00
3 Filling machine 18.50
4 Batch coding machine 2.00
5 Group shrink packing 5.00
6 Electric panel, electric work
7 Boiler, steam piping to plant, chimney
22.00
8 Cooling tower, piping
9 Online chiller, piping
10 RO, lab and piping 26.50
11 ETP 10.00
Total 134.00
*The make and specification of P&M may vary project to project based on the quotations from different
suppliers.

As per scheme guidelines Rs. 134.00 lakh has been considered towards grant-in-aid calculation.

Misc. Fixed Assets

In order to ensure smooth operation of the unit, it would also require certain miscellaneous fixed
assets apart from above listed plant &machinery. The miscellaneous fixed assets would include
electrical installation, power back-up, furniture, office equipment &vehicle for transportation, etc.
Cost of these assets is estimated at Rs. 25.00 lakh.

Preliminary & pre-operative expenses

Pre-operative expenses have been considered considering the tentative expenditure to be

incurred related to loan appraisal fees, consultancy fees, administrative exp and interest on term
loan during construction period. All these expenses have been estimated at Rs. 5.00lakh.

Contingency

Amount proposed to be invested towards contingency is Rs. 5.00 lakh

Margin money for the working capital

We have worked out the margin money for working capital requirement as per project need and
its smooth operation, the proposed amount of margin money is Rs. 10.00 lakh @25% of the
working capital requirement. Detail is given in the financial section of the report.

Electricity
 The unit will require power load of ……… KVA from North/South Bihar Power Distribution
Company Ltd. for this project. Estimate of power requirement is enclosed with the financial part of
this report.

Water

The estimated water consumption is approx. 20 KL per day and two deep bore wells would be
required to meet water requirement of the unit.

Manpower

An estimate of manpower requirement has been prepared based on the equipment and
operations involved. An estimate of manpower cost is given below:

Total Salary Total Salary

No of Monthly
S. No Particulars Per Month Per Annum
Employee Salary
(Rs.) (Rs.)

A Technical Staff
1 Manager 1 15,000 15,000 180,000
2 Storekeeper 2 10,000 20,000 240,000
3 Accountant 1 10,000 10,000 120,000
4 Operator, fitter, electrician 4 12,000 48,000 576,000
5 Helper/ Skilled worker 4 8,000 32,000 384,000

B Unskilled Staff

6 Peon/Security Guard 2 8,000 16,000 192,000

- - -

Total 14 1,692,000
Add PF, ESI & Other benefits etc @20% 338,400
Total Direct Wages 2,030,400
Total Direct Wages (Rs. In lakh) 1.41 20.30

10. Means of Finance

Sl No Particulars Total Total

1 Capital 60.00 25%

2 Long Term Debt 180.00 75%

240.00 100%
11. Techno-commercial viability of the project
a. Technical viability: Project has proposed to install modern and standard machineries from reputed
suppliers for production process. It has proposed proper marketing strategy for the sale of the
goods in local as well adjoining districts. The project has already been approved for available
term loan from bank and promoters of the unit are aware about the business and will also deploy
trained and technical staff for running the unit.
b. Commercial viability: The financial projections of the unit are positive with standard financial
ratios, the list of important financial ratios are given below:

Gross Profit 24.71 24.09 23.82 23.60 23.32

Ratio
Net Profit Ratio 7.54 8.75 9.70 10.45 11.01
Current Ratio 2.14 3.03 3.90 4.79 5.69
DSCR 2.85 2.98 3.08 3.18 3.27
BEP 0.59 0.49 0.41 0.35 0.30
IRR 15%

12. Financial Analysis

Assumption

Capacity assessment
Production per day from plant 500 ltr/hour in two shifts i.e. 16 hours
per day
No. of working days 250
Total annual production at 100% 2000 MT
capacity
Total annual install capacity 2000 MT

Capacity assumptions
Product mix 100% 2000 MT
RTS Juice 80% 1800 MT
Loss 20% 200 MT
Total annual install capacity - 2000 MT
Working Capital Requirements
Sl Particular Stocking Ist Yr 2nd Yr 3rd Yr 4th Yr 5th Yr
No Period
in
Month
1 Raw Materials 1.00 25.95 28.11 30.28 32.44 34.60
2 Consumable Stores & Packing Material 1.25 0.00 0.00 0.01 0.01 0.01
3 Finished Goods 0.50 18.06 20.58 21.84 23.52 25.20
4 Receivables 0.25 9.07 10.19 11.00 11.78 12.57
5 Expenses for One Month 0.50 1.89 2.08 2.29 2.52 2.77
Total Current Assets 54.98 60.97 65.41 70.26 75.15
6 Less: Sundry Creditors 1.00 28.11 28.29 30.46 32.62 34.78
7 Working Capital Gap 26.87 32.67 34.95 37.64 40.36
8 Total Required Margin 6.72 8.17 8.74 9.41 10.09
9 Permissible Bank Finance 20.15 24.50 26.22 28.23 30.27
10 Actual Bank Borrowing 19.00 19.00 19.00 19.00 19.00
on Stock 11.40 11.40 11.40 11.40 11.40
on Book Debts 7.60 7.60 7.60 7.60 7.60
11 Actual Margin 7.87 13.67 15.95 18.64 21.36
Revenue Projections
Sl No Particulars Ist Yr 2nd Yr 3rd Yr 4th Yr 5th Yr
1 Installed Capacity (In MT) 2000 2000 2000 2000 2000
2 Product Mix
100% 100% 100% 100% 100%
Juice 90% 90% 90% 90% 90%
Loss 10% 10% 10% 10% 10%

3 Product wise capacity 2,000 2,000 2,000 2,000 2,000

Juice--90% 1,800 1,800 1,800 1,800 1,800
Loss-10% 200 200 200 200 200
4 Capacity Utilisation 60% 65% 70% 75% 80%
Production (In MT)
Juice
Actual Production 1,080.00 1,170.00 1,260.00 1,350.00 1,440.00
Add: Opening Stock of FG (In MT) - 43.00 49.00 52.00 56.00
Less: Closing Stock of FG (In MT) 43.00 49.00 52.00 56.00 60.00
Value of Opening Stock (Rs. In lacs) - 18.06 20.58 21.84 23.52
Value of Closing Stock (Rs. In lacs) 18.06 20.58 21.84 23.52 25.20
Quantity to be sold (In MT) 1,037.00 1,164.00 1,257.00 1,346.00 1,436.00
Selling Rate per MT 42,000.00 42,000.00 42,000.00 42,000.00 42,000.00
Sales Value (Rs. In lacs) (A) 435.54 488.88 527.94 565.32 603.12
5 Total Sales Value (Rs. In lacs) (A) 435.54 488.88 527.94 565.32 603.12
6 Closing Stock of Finished Goods (Rs. In lacs) 18.06 20.58 21.84 23.52 25.20
Fund Flow Statement
SL. PARTICULAR Ist Yr 2nd Yr 3rd Yr 4th Yr 5th Yr
NO.

CASH INFLOW

1 Profit before Tax 49.75 64.83 77.55 89.48 100.58

2 Add:- Depereciation 29.05 25.12 21.74 18.83 16.32

3 Priliminery Exps. W.O. - - - - -

4 Cash Accurals (1+2+3) 78.81 89.96 99.29 108.31 116.90

5 Receipt of capital subsidy from Bihar Govt.

6 Increase/(Decrease) in C.L. 28.11 0.18 2.16 2.16 2.16

7 Contribution by Shareholder/Promoter 60.00 - - - -

8 Increase in Term Loan from Bank 180.00

9 Increase in Un. Sec. Loan

10 Increase in Working Capital 19.00 - - - -

A.Total (Rs.)(4 to 14) 365.92 90.14 101.45 110.47 119.06

CASH OUTFLOW

1 Preliminery & Preoperative Expenses -

 2 Increase in Current Asset 88.09 30.79 34.24 34.62 64.63

3 Increase in Cap. Expenditure 222.35

4 Decrease in Term Loan 25.71 25.71 25.71 25.71 25.71

5 Investment - - - - -

6 Dividend Paid - - - - -

7 Income Tax Paid 16.91 22.04 26.36 30.41 34.19

B.Total (Rs.) (1 to 9) 353.06 78.55 86.31 90.75 124.53

C.Surplus/Deficit from Project (A-B) 12.86 11.59 15.14 19.72 (5.47)

D. Opening Balance of Cash & Cash Equivalent - 12.86 24.45 39.60 59.32

E. Closing Balance of Cash & Cash Equivalent(C+D) 12.86 24.45 39.60 59.32 53.85

Balance Sheet Cash & Bank 12.86 24.45 39.60 59.32 53.85
Particulars Ist Yr 2nd Yr 3rd Yr 4th Yr 5th Yr
Liabilities

Capital 60.00 60.00 60.00 60.00 60.00

Reserve & Surplus 32.84 75.64 126.83 185.89 252.29

Term Loan 154.29 128.57 102.86 77.14 51.43

Bank Borrowing for Working Capital 19.00 19.00 19.00 19.00 19.00

Sundry Creditors 28.11 28.29 30.46 32.62 34.78

Provision for Taxation 16.91 22.04 26.36 30.41 34.19

Total 311.15 333.54 365.50 405.07 451.69

Assets

Gross Block 222.35 222.35 222.35 222.35 222.35

Less- Accumulated Deprection 29.05 54.18 75.92 94.75 111.07

Net Block 193.29 168.17 146.43 127.60 111.28

Current Assets

Inventory

Raw Materials 25.95 28.11 30.28 32.44 34.60

Consumables Stores & Packing Materials 0.00 0.00 0.01 0.01 0.01

Closing Stock 18.06 20.58 21.84 23.52 25.20

Receivables 9.07 10.19 11.00 11.78 12.57

Other Current Assets

Taxation Advance 16.91 22.04 26.36 30.41 34.19

Other Current Assets 35.00 60.00 90.00 120.00 180.00

Cash & Bank Balances 12.86 24.45 39.60 59.32 53.85

Miscellaneous Expenditure (not w/o) - - - - -

Total 311.15 333.54 365.51 405.07 451.69

Particulars Ist Yr 2nd Yr 3rd Yr 4th Yr 5th Yr

Sales 435.54 488.88 527.94 565.32 603.12

Less- Duty & Taxes - - - - -

Net Sales 435.54 488.88 527.94 565.32 603.12

Other Income - - - - -

Total 435.54 488.88 527.94 565.32 603.12

Variable Cost

Raw Materials Consumed 311.42 337.37 363.33 389.28 415.23

Consumables & Packing Materials 0.04 0.04 0.05 0.06 0.07

Wages & Salary 20.30 20.30 22.33 24.57 27.02

Power 10.08 11.14 12.24 13.37 14.55

Repair & Maintenance 2.15 2.37 2.60 2.86 3.15

Other Manufacturing Expenses 2.00 2.40 2.88 3.46 4.15

Cost of Production 346.00 373.62 403.43 433.59 464.17

Add: Opening Stock of Finished Goods - 18.06 20.58 21.84 23.52

Less: Closing Stock of Finished Goods 18.06 20.58 21.84 23.52 25.20

Cost of Sales 327.94 371.10 402.17 431.91 462.49

Gross Profit :- 107.60 117.78 125.77 133.41 140.63

Selling & Administrative Expenses 10.89 12.22 13.20 14.13 15.08

- Other Selling & Adm. Exps. 10.89 12.22 13.20 14.13 15.08

Profit before Interest & Depreciation 96.72 105.55 112.57 119.27 125.55

Depreciation 29.05 25.12 21.74 18.83 16.32

Profit before Interest & Taxation 67.66 80.43 90.83 100.44 109.24

Interest on

Term Loan 16.20 13.89 11.57 9.26 6.94

Working Capital 1.71 1.71 1.71 1.71 1.71

Total Interest 17.91 15.60 13.28 10.97 8.65

Profit before Taxation 49.75 64.83 77.55 89.48 100.58

Current Tax 16.91 22.04 26.36 30.41 34.19

Deffered Tax - - - - -

Profit after Tax 32.84 42.80 51.19 59.06 66.39

Add: Profit B/f from Previous Year - 32.84 75.64 126.83 185.89

Balances transfer to Reserve & Surplus 32.84 75.64 126.83 185.89 252.29
SI Particular Ist Yr 2nd Yr 3rd Yr 4th Yr 5th Yr
No.
1 Profit Before Taxation 49.75 64.83 77.55 89.48 100.58

2 Add: Depreciation 29.05 25.12 21.74 18.83 16.32

3 Less: Depreciation 29.05 25.12 21.74 18.83 16.32

4 Taxable Income 49.75 64.83 77.55 89.48 100.58

5 Tax as per normal provision @26% 16.91 22.04 26.36 30.41 34.19

6 Book Profit u/s 115 JB 49.75 64.83 77.55 89.48 100.58

7 Tax on above @20.96% including surcharge 10.43 13.59 16.25 18.75 21.08

8 Income Tax Payable (5 or 7 whichever is higher) 16.91 22.04 26.36 30.41 34.19
Financial Ratios

Gross Profit 24.71 24.09 23.82 23.60 23.32

Ratio
Net Profit Ratio 7.54 8.75 9.70 10.45 11.01
Current Ratio 2.14 3.03 3.90 4.79 5.69
DSCR 2.85 2.98 3.08 3.18 3.27
BEP 0.59 0.49 0.41 0.35 0.30
IRR 15%

DSCR
SI Particular Total Ist Yr 2nd Yr 3rd Yr 4th Yr 5th Yr
No.
1 Profit after Taxation 252.29 32.84 42.80 51.19 59.06 66.39

2 Interest on Term Loan 57.86 16.20 13.89 11.57 9.26 6.94

3 Deffered tax Liability - - - - - -

4 Depreciation 111.07 29.05 25.12 21.74 18.83 16.32

5 Preliminary Expenses w/o - - - - - -

Total 421.21 78.09 81.81 84.50 87.15 89.66

1 Repayment of Term Loan 128.57 25.71 25.71 25.71 25.71 25.71

2 Interest on Term Loan 8.55 1.71 1.71 1.71 1.71 1.71

Total 137.12 27.42 27.42 27.42 27.42 27.42

DSCR (Gross) 3.07 2.85 2.98 3.08 3.18 3.27

BEP
SI NO Particulars Ist Yr 2nd Yr 3rd Yr 4th Yr 5th Yr
A Net Sales 435.54 488.88 527.94 565.32 603.12
 Add: Closing Stock of F.G 18.06 20.58 21.84 23.52 25.20
Less: Opening Stock of F.G - 18.06 20.58 21.84 23.52
Total 453.60 491.40 529.20 567.00 604.80
B Variable Cost
Raw Materials Consumed 311.42 337.37 363.33 389.28 415.23
Consumables Packing Materials 0.04 0.04 0.05 0.06 0.07
Wages & Salary 20.30 20.30 22.33 24.57 27.02
Power & Fuel 10.08 11.14 12.24 13.37 14.55
Other Manufacturing Expences 2.00 2.40 2.88 3.46 4.15
Repair & Maintenance 2.15 2.37 2.60 2.86 3.15
Other Selling & Administrative Exps 2.18 2.44 2.64 2.83 3.02
Interest on working Capital 1.71 1.71 1.71 1.71 1.71
Total 349.88 377.78 407.78 438.13 468.89
C Contribution 103.72 113.62 121.42 128.87 135.91
P/V Ratio 22.87 23.12 22.94 22.73 22.47
D Fixed & Semi-Varable Exps.
Salaries 10.15 10.15 10.15 10.15 10.15
Other Selling & Adm.Exps. (50%) 5.44 6.11 6.60 7.07 7.54
Interest on Term Loan & Other 16.20 13.89 11.57 9.26 6.94
Depreciation 29.05 25.12 21.74 18.83 16.32
60.85 55.27 50.07 45.30 40.95
BREAK EVEN POINT 0.59 0.49 0.41 0.35 0.30
13. Project impact

As discussed earlier, the project will have various positive impacts such as:

Infrastructure for value addition: This unit would aim to integrate and streamline existing value
chains in the region by creating centralized infrastructure for value addition and preservation. The
unit will thus provide benefits on cost, quality and convenience for sustainable growth in the
market driven economy. The unit has been envisaged in a way that it would ensure better returns
to all players in each level of value chains ranging from procurement, storage, processing,
packaging to distribution of food commodities through vertical integration of functions and
horizontal linkages of destinations.

Reduction of Wastages: The infrastructure created at the unit along with the integration of
backward and forward linkages would lead to more efficient supply chains and reduction of
wastages. This would provide higher value realization to all players in the supply chain including
the farmers.

Creation of employment: The project shall generate employments. It is estimated that the it
would generate direct employment of about 14 workers and indirect employment of another 30
workers. Most of the manpower requirement will be met from the local area.

Return to farmers: The unit will be benefiting farmers in the region by increasing the returns for
farmers by decreasing wastages and increasing demand of the agricultural produce