Proposal for setting up Mini-TRIFOOD Processing Unit

State

Vellore and Tirupattur, Tamil Nadu

Submitted by

Nodal Department

Department of Tribal Welfare

Kavignar Maaligai, Fort St. George, Chennai 600 009

Implementing Agency

Adi Dravidar And Tribal Welfare Department

Vellore & Tirupathur, Tamilnadu

Resource Agency

Srinivasan Services Trust

(CSR arm of TVS Motor Company)
Jamunamarathur, Javadhu Hills Taluk,
Thiruvannamalai Dt-635703, Tamil Nadu

TRIFED -Regional Office

Regional Office South
No.323/1, Hosur Main Road,2nd Floor,
Near Madiwala Police station,
Madiwala, Bangalore 560 068, Karnataka

Proposal for setting up Mini-TRIFOOD Processing Unit

1. Introduction

TRIFED has been implementing the Prime Minister Van Dhan Yojana, which involves creating a micro-enterprise of 300 tribal beneficiaries at Village Level by way of collection of forest items,

training, value-addition, packaging, branding and marketing of value-added products. These micro-enterprises are known as Van Dhan Vikas Kendra Clusters (VDVKCs). TRIFED has been

sanctioning Rs.15 Lakhs per VDVK Cluster for carrying out training and value addition activities.
 In the State of Tamil Nadu, TRIFED has sanctioned 8 Van Dhan Vikas Kendra Clusters (VDVKCs) in 5 districts; benefitting around 2400 tribal Entrepreneurs. Out of 8, 4 VDVKCs have already

begun their operations which include processing and marketing of various MFPs such as Millets, Tamarind, Honey, Pickle, kadukai(Myrobala), Organic Shop and Turmeric etc.

In Tamil Nadu, Adi Dravidar and Tribal Welfare Department is implementing agency and Department of Tribal welfare is nodal agency for the scheme. Srinivasan Services Trust is engaged as

resource agency for technical support in implementing the scheme at grass root level.

2. Project Proposal

The Proposal is to setup 1 (One) Mini-TRIFOOD Processing unit by combining 2 VDVKCs. Under this project processing and packaging of the products is undertaken with appropriate branding.

To facilitate these activities processing/upgraded processing machinery or packaging facility etc. would be required at the unit, so that processing and packaging of the products is undertaken

properly with appropriate branding, which will help in scaling up their activities, ultimately result in generating income and a more sustainable livelihood for the tribal entrepreneurs involved. It is

expected that about 600 Tribal households will be mobilized under these VDVKCs and benefitted under the program.

Presently, each VDVKC has been already undertaking various activities including value addition, packaging, branding, etc. for which TRIFED has released Rs.15 Lakhs per VDVKC. The plan is

to upgrade the processing unit combined with two VDVKCs by providing additional processing/upgraded processing facility, as may be required by VDVKCs or Mini-TRIFOOD Processing unit.

3. Proposed Location for setting up of Mini-TRIFOOD Unit:

One Mini TRIFOOD processing Unit is proposed to be set-up in the Vellore and Tirupathur district to cater the processing units of VDVK of Peenjanmanthai and Pudurnadu Clusters.

3.a. Details of Value Added products of Minor Forest Produce (MFP) currently manufactured by VDVK of proposed Mini TRIFOOD Units

S.No. Name and Location of VDVK NTFP/Produce Name of Value Added product

Tamarind Tamarind Package 1 KG 500 gram, wholesale also provided

1. Peenjamanthai
Millets Packaging, Labelling

Honey Processing, Bottling, Labelling

Tamarind Packaging, Labelling, Branding, keep in cold storage

2. Pudurnadu

Pickle Packing, labelling and branding

 Millets Processing, labelling, Branding

3.b. Seasonality and collection capacity of Minor Forest produce for both the VDVK:

Seasonality of NTFP/agri commodities proposed (Also mention the approx. amount collected in the month for each)

Approximate MFP/NTFP Collection Amount (in 000’ KG)

Name of VDVK
MFP/NTFP name Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total (kg)
(Cluster)

Tamarind 500 20000 10000 500 500 31000

Millets 1000 1000 1000 3000

Peenjamanthai

Pudurnadu
Honey 500 500 500 500 500 500 3000

Pickle 100 100 100 300

4. Process and integration of Value Chain for Mini-TRIFOOD Unit:

Processing &
Gathers, MFP from Forest
Van Dhan Value Addition
SHG

Identification of Collection at
Under this project, VDVKC under Mini-TRIFOOD Unit could be equipped with better machinery/technology to upgrade the existing processing facility and facilitate better
MFP gathers Kendra Level
packaging which would help in branding of the products. With these inputs, products would be more saleable and would help in generating income and improve livelihood
for the tribal entrepreneurs.

Tie-up with
Sale of corporates for
processed/value processing on
added products defined terms
products
5. Operations and Business Plan for the proposed products for each VDVKC under proposed Mini-TRIFOOD Unit, Baksa district

Under the proposed Mini-TRIFOOD Unit , it is proposed to upgrade the current processing units functioning at VDVKC cenetrs at Kalbari VDVKC and Thulun shi Chhaya by upgrading the current

business by procurement of additional Machinery/Technology for food processing and automated packaging and marketing linkages for sale of the value-added products produced by these VDVKCs.

Proposed Product for processing – Supari, Turmeric, Joha Rice, Black Rice and Bay Leaf

Existing Activity under the proposed Mini-TRIFOOD Unit (both the VDVKCs): All the products are forest produce and are sourced or cultivated by the Tribal VDVK/SHG members in the VDVK

Clusters. These forest produces are sourced or collected with the help of basic equipment and tools like scrapper, cutter etc.

Post this, the members of VDVKCs are engaged in primary processing like sorting, grading and cleaning at VDVK/SHG level and are brought to the existing Van Dhan Kendra Cluster where they are

further processed, packed, labelled, branded and made ready for sale with the use of basic machineries like Mixture & Juicer, Grinder, PP sealer machine, Hot air gun and other Basic food processing

kit etc .

6. Background and Experience of Implementing Agency and VDVKCs proposed for operations of Mini-TRIFOOD Unit:

• Industry Experience of Implementing Agency: Assam Plain Tribes & Development Corporation Limited (APTDCL), implementing agency Indian Institute of Entrepreneurship (IIE), resource

agency organises training on value addition of the MFPs. IIE hires well-trained certified master trainer to train and guide the VDVK members. Once these trainings are imparted to the implementing

VDVKs (SHGs), processing of the products starts. Both APTDCL and IIE strictly monitor the quality of the products. These finished products are then marketed to local markets and help them find

avenues for large scale marketing.

• Industry Experience of VDVKCs: All manufacturing processes are done by the SHG members of the VDVKC. Proper trainings have been imparted to VDVK (SHG) members in order to produce

quality products with appropriate safety and hygiene standards maintained. Branding and packaging is being done by the VDVKs (SHGs).

6.a Details and existing operations of each VDVK Centers under Mini-TRIFOOD Unit:
S. No Particulars Peenjamanthai VDVK Pudurnadu VDVK

No. of Members 300 300

i.1

No. of Van Dhan Vikas Kendras (VDVKs)

1/24 1/24
ii.2 /( SHGs)

Name of the Leader of VDVK Cluster Mrs. Sumithra Mrs. Sivagami

iii.3

Contact Detail of VDVK- Cluster Leader 9585668501 9655988160

iv.4

Awareness & Value Addition: 2 no. Of trainings | 4

Awareness & Value Addition: 2 no. Of trainings | 4 days per
Details of Capacity Building/training conducted days per training with 30 beneficiaries in each
v.5 training with 30 beneficiaries in each training
training

Tamarind
Tamarind
 Sales Volume: 250 Kg
 Sales Volume: 2250 Kg  Sales Amount: (250kg @120) = Rs. 30000
 Sales Amount: (2250kg @120) = Rs.
270000

Sales by VDVK Cluster till date

Honey Pickle
vi.6 (Total Sales and Sales for the Food Items

proposed)  Sales Volume: 210kg  Sales Volume: 40 kg

 Sales Amount: (210 kg of Honey @600=  Sales Amount: @300 Rs.12000
Rs. 126000

Millets Millets

 Sales Volume: 100Kg  Sales Volume: 100Kg

 Sales Amount: @120 = Rs. 12000  Sales Amount: @120 = Rs. 12000

*Local Markets
ix.7 Details of Marketing of Products done till date *Local Markets

(Placement of Products, Whether Digital

 Marketing/B2B etc.)

6.b Details of processing, packaging and challenges of proposed product for each of the VDVKCs given below:

VDVKC Proposed Product and its Value Packaging Challenges faced Proposed Activity under the

Addition project

Peenjamanthai i. Millets  Packed in Polypropylene rectangular Lack of heavy machine, Upgradation of processing units

VDVK food grade disposable Plastic Can (for premium), with packaging machinery

 Plastic jar,
Advanced
ii. Tamarind  Glass bottle and
 Plastic stand up pouch with label
packaging
mentioning the location of VDVKC,

iii. Honey Ingredients of the product content along with process, lack of availability of
batch, manufacture date & expiry dates. power back up

iv.

Pudurnadu VDVK i. Millets  Packed in Polypropylene rectangular Upgradation of processing units

food grade disposable Plastic Can (for premium), with packaging machinery.
 Plastic jar,

ii. Tamarind  Glass bottle and

 Plastic stand up pouch with label

mentioning the location of VDVKC,

iii. Pickle Ingredients of the product content along with

batch, manufacture date & expiry dates.

7. ESTIMATED COST OF THE PROJECT

Pudurnadu VDVK
   Project Component Released Actuals Balance as per Release Remarks

1 Training and Facilitation Expenses        

1.1 Hiring of Master Trainers (2 No.s) 40,005.00 5,800.00 34,205.00  

Lodging and Boarding Charges for the Master

1.2 19,995.00 - 19,995.00
Trainers  

Arrangement for training (such as training board,

1.3 10,000.00 - 10,000.00
banners, posters, etc.)  

2 Trainee Expenses        

Wage compensation to the trainees/ members

2.1 1,80,000.00 56,250.00 1,23,750.00
(20 trainees X 4 days x Rs. 150/ day)  

Food & Refreshment Expenses (Breakfast, Lunch,

2.2 Tea /Snacks) 1,20,000.00 22,457.00 97,543.00

(Rs. 100/ trainee/ day X 20 trainees X 4 days)  

3 Advocay Expenses        

  Advocacy material, photography, etc 45,000.00 20,806.00 24,194.00  

Cost of Raw Material

4 85,000.00 6,630.00 78,370.00
(14 kgs per person @ Rs.20/- per kg)  

5 Cost of Tool Kits 10,00,000.00 7,15,366.00 2,84,634.00  

Total Santion : Rs.15,00,000/-

Total Release: Rs.14,85,000/-

  Total Cost (1+2+3+4+5) 15,00,000.00    
Balance : Rs.15,000/- was deducted by VDVK, for

Beneficiary survey

(The Operational Procedures provides flexibility for

spending funds on other heads within total budget of Rs.15

6 Expenditure on "other heads"       Lakhs, to be approved by the State Nodal Department at

State Level or DLCMC at District Level)

6.1 Additional tool Kits and Equipments for VDVK      

Additional Working Capital

6.2      
(Over and above corpus of VDVK members)

6.3 Transportation and hanlding   18,060.00  

6.4 Storage   4,295.00  

Other justified and reasonable expenses (like

6.5      
packaging, branding, etc)

6.6 Mentoring charges (@ Rs.80,000/- or upto 7% of   9,281.00  

 expenditure per VDVK

(subject to max limit of expenditure of Rs.15 Lakh

for VDVK of 300 members), whichever is lower.

  TOTAL Expenditure (Rs/Lakhs) 15,00,000.00 8,58,945.00    

Peenjamandhai VDVK

  Project Component Sanctioned Actuals Balance as per Release Remarks

1 Training and Facilitation Expenses        

1.1 Hiring of Master Trainers (2 No.s) 40,000.00 5,400.00 34,600.00  

Lodging and Boarding Charges for the Master

1.2 20,000.00 - 20,000.00
Trainers  

Arrangement for training (such as training board,

1.3 10,000.00 4,565.00 5,435.00
banners, posters, etc.)  

2 Trainee Expenses        

Wage compensation to the trainees/ members

2.1 1,80,000.00 36,800.00 1,43,200.00
(20 trainees X 4 days x Rs. 150/ day)  

Food & Refreshment Expenses (Breakfast, Lunch,

2.2 Tea /Snacks) 1,20,000.00 17,216.00 1,02,784.00

(Rs. 100/ trainee/ day X 20 trainees X 4 days)  

3 Advocacy Expenses        

  Advocacy material, photography, etc 45,000.00 43,040.00 1,960.00  

Cost of Raw Material

4 85,000.00 24,586.00 60,414.00
(14 kgs per person @ Rs.20/- per kg)  

5 Cost of Tool Kits 10,00,000.00 3,25,769.00 8,24,231.00  

Total Santion : Rs.15,00,000/-

Total Release : Rs.14,85,000/-

  Total Cost (1+2+3+4+5) 15,00,000.00    
Balance : Rs.15,000/- was deducted by VDVK, for

Beneficiary survey

6 Expenditure on "other over heads"       (The Operational Procedures provides flexibility for

spending funds on other heads within total budget of

Rs.15 Lakhs, to be approved by the State Nodal

6.1 Additional tool Kits and Equipments for VDVK   1,000.00   Department at State Level or DLCMC at District Level)

6.2 Additional Working Capital   1,50,000.00  

(Over and above corpus of VDVK members)

6.3 Transportation and hanlding   50,800.00  

6.4 Storage   -  

Other justified and reasonable expenses (like

6.5   30,264.00  
packaging, branding, etc)

Mentoring charges (@ Rs.80,000/- or upto 7% of

expenditure per VDVK

6.6   18,797.00  
(subject to max limit of expenditure of Rs.15 Lakh

for VDVK of 300 members), whichever is lower.

  TOTAL Expenditure (Rs/Lakhs) 15,00,000.00 7,08,237.00    

8. Marketing and distribution of products

The sales of Rs.4,26,000 has been registered during last financial year for forest products as under

 Peenjamandhai VDVK Cluster

 Rs.2,70,000 for Tamarind in the local market.

 Honey Sales Rs.90000 done in Trified Bangalore.

 Millet’s sales for Rs. 12,000 in the local market.

 Pudurnadu VDVK Cluster,

 Millets done for Rs. 12,000 in the local market.
 Pickle packs of 40kg Rs. 12,000 in local Market.

 Rs. 30,000 for Tamarind in the local market.

Details of product wise retail packets sold in market:

S.No District Name and location of VDVKC Name of Value- Annual Quantum of value-added Prices of each final product sold in market
added product product produced in an year (Approx (In Rs/Kg.) (Per unit)
in Kg)

1 Vellore Peenjamanthai VDVK Cluster Tamarind 200000 @120/Kg

Millets 500 @140/Kg

Honey 1000 @600/ Kg

2 Pudhurnadu VDVK Cluster Tamarind 500 @120/Kg

Millets 5000 @140/ Kg

Pickle 500 @300/Kg

11. Source of Funding

The total breakup of Source of Funding under TRIFED and PMFME Scheme is given below:

Particulars Amount

1 Mobilization and Capacity building 5 Lakhs (For each VDVK)

Machinery Cost

2 Equipment & Toolkits (such as dryer, sieve, packaging machine, weighing scale, cutting tool, tarpaulin, etc.) 10 Lakhs (For each VDVK)
 3 Subsidy under PMFME - Upto 35%, limited to Rs 10 Lakhs for Additional Equipments 10 lakhs

TRIFED has already released Rs.15 Lakhs per VDVKC. The money has been utilised for undertaking various activities as Mobilization & Capacity Building, Equipments & Toolkits, Branding

and Promotion etc.. Now, Mini TRIFOOD Unit formed would need additional fund of Rs.10 Lakhs for upgrading their Processing units, as subsidy under PMFME scheme of Mo FPI.