BUSINESS PLAN

For
TOMATO SAUCE MANUFACTURING UNIT

INTRODUCTION

A tomato sauce manufacturing unit is a facility dedicated to the production of tomato-based sauces. It involves
processing fresh or canned tomatoes, blending them with various ingredients such as herbs, spices, and
preservatives, and then undergoing cooking and packaging processes to create a finished product. These units
play a crucial role in providing consumers with a convenient and flavorful culinary ingredient.

Tomato ketchup is most often used as a condiment to dishes that are usually served hot and may be fried
or greasy: French fries, hamburgers, hot dogs, chicken tenders, tater tots, hot sandwiches, meat pies, cooked
eggs, and grilled or fried meat. Ketchup is sometimes used as the basis for, or as one ingredient in, other
sauces and dressings, and the flavour may be replicated as an additive flavouring for snacks such as potato
chips.

Name of the Firm TomatoCraft Creations

Name of business / project Tomato Sauce MANUFACTURING UNIT

Location VEERANAM
Type of Organization
PROPRIETARY
(Proprietary/Partnership)
2/166 KOVIL ST
Salem- 636002
Address (with Phone, e-mail)
PHONE: 8946095263
EMAIL: lokeshlokesh96290@gmail.com

Name of the Chief Promoter(s) Lokesh.R

Date of Birth 04/09/2004

Names of Partners NA

EDUCATIONAL QUALIFICATION:

Course School/University/ Major Yr. of

(SSLC/Diploma) Institute Subject passing
Government higher secondary school 2019
_
SSLC Salem

Thiagarajar Polytechnic Production

DIPLOMA College, Salem Engineering Pursuing
SPECIAL TRAINING:

Achievement /
Training in Institute Duration
Remark

SRI RAM PIPES 31.05.2023-

certificate
&FITTINGS PRIVATE COMPANY 10.06.2023
received
(11 Days)

WORK EXPERIENCE (PAST & PRESENT):

Organization Position Nature of work Duration

- - - -

ASSETS

Promoter’s Annual Income (Last Year) NIL

Assets owned by the promoter (s):
Rs
Movable 30,000
Immovable
Rs 60,000
 COMPANY’S MAIN OBJECTIVE (Why does the company exist?):

The objective of a tomato sauce company may include producing high-quality, flavorful
sauces, expanding market reach, maintaining food safety standards, and achieving
sustainable business growth.

FINANCIAL GOALS:

a) To have a sales revenue amounting to RS 40 lakhs

b) To obtain a profit margin of 15%

c) To obtain a profit per business partner Rs. NIL

DESCRIPTION OF THE PRODUCT or SERVICE:

Tomato sauce is a versatile culinary condiment crafted from ripe tomatoes, blended with
aromatic herbs and spices. This rich, savory sauce serves as a foundation for countless
dishes, enhancing flavors with its robust taste. Whether used as a pizza base, pasta
topping, or cooking ingredient, our tomato sauce promises a delicious and wholesome
addition to your culinary creations.

IDENTIFICATION OF THE CUSTOMERS:

1. Household Consumers
2. Hotels, Resorts
3. Restarunts
4. Pizzerias
5. Online Platforms and E-commerce Stores

IDENTIFICATION OF THE COMPETITION (Major competitors):

1) Luxury/High-end Brands
2) Large Established Brands
3) Regional or Local Manufacturers

Strengths / weakness of the

competition:

Strengths Weakness

Brand Recognition and Loyalty Limited Innovation

Distribution Networks Poor Brand Image or Reputation

Cost Efficiency and Scale Limited Marketing Budget

ADVANTAGES AND DISADVANTAGES OF THE PRODUCT AND YOUR COMPANY:

Price Stable due to regular usage of customers

Quality High

Terms of Delivery On time delivery as per store need

Payment Methods Cash / Credit

Customer Service Very user friendly

Others Nil

MESSAGE TO BE COMMUNICATED TO THE CUSTOMERS:

Savor the Essence: Our Tomato Sauce, Where Flavor Meets Freshness!
MARKETING AND MEANS OF COMMERCIALIZATION:

Stable due to their essential nature in personal hygiene

Present demand & supply
routines.

Competition A number of competitors exist

Identifying and segmenting the target market is crucial. This

could include households, restarents (hotels, resorts), fast
Target clients
food shop, retailers, private label clients, specialty stores,
and eco-conscious consumers.
Marketing strategy
Our products meet quality standards with more cost
(USP – Unique Selling
Hygiene with Natural Manner.
Proposition)

PROCESS / SERVICE METHOD:

Technical know-how
2 Years of experience in the same field
Availability

Step-by-step description of the Providing Quotation for requirement, Raw material

Manufacturing process purchase, Assembly, Dispatch
 DETAILS OF THE PROPOSED PROJECT

MARKET POTENTIAL

Tomato Sauce Market size was valued at USD 20.7 Billion in 2022 and is projected to reach
USD 26.0 Billion by 2030, growing at a CAGR of 2.90% from 2024 to 2030.

Tomato Ketchup Manufacturing Business Idea: Tomato sauce business enjoys healthy profit
margins due to its widespread popularity and with the right approach, you can achieve
substantial earnings.

The ketchup and tomato sauces market in India was equal to 397.00 million USD (calculated
in retail prices) in 2015. Until 2025, the ketchup and tomato sauces market in India is forecast
to reach 1.10 billion USD (in retail prices), thus increasing at a CAGR of 7.27% per annum for
the period 2020-2024.

1. Wide Consumer Appeal: Tomato sauce has a broad market appeal due to its versatile use
in diverse cuisines, making it a staple condiment in households worldwide.

2. Health Consciousness: Growing health awareness may drive demand for tomato sauce,
particularly if products emphasize natural ingredients and reduced additives.

3. Convenience Factor: The convenience of a ready-to-use sauce aligns with busy lifestyles,
catering to consumers seeking time-saving options in meal preparation.

4. Globalization of Cuisine: Increasing globalization and exposure to various cuisines

contribute to the rising demand for tomato sauce as an essiential ingredient in international
cooking.

5. Product Innovation: Market potential is boosted by continuous product innovation,

including variations such as organic, low-sodium, or specialty-flavored tomato sauces,
catering to diverse consumer preferences.

6. Diverse Applications: Beyond traditional uses, the market potential expands with the
exploration of new applications, such as dips, marinades, or accompaniments for snacks.

7. Emerging Markets: As economies develop, there is potential for increased consumer

spending, driving the demand for convenience foods like tomato sauce in emerging markets.

8. Health and Wellness Trends: The association of tomatoes with health benefits, such as
being a good source of antioxidants and vitamins, aligns with broader wellness trends,
contributing to the market potential of tomato sauce
BASIS AND PRESUMPTIONS

1. Raw Material Availability: The business assumes a consistent and reliable supply of
high-quality tomatoes and other essential raw materials for tomato sauce production.

2. Market Demand: The unit is based on the presumption that there is a sustained and
growing demand for tomato sauce products in the target market, supported by consumer
preferences and culinary trends.

3. Regulatory Compliance: It is assumed that the manufacturing unit will operate in

compliance with all relevant food safety, environmental, and other regulatory standards and
requirements.

4. Skilled Workforce: The business presupposes the availability of skilled and trained
personnel to manage various aspects of the manufacturing process, including recipe
formulation, processing, quality control, and distribution.

5. Infrastructure and Technology: The unit is established with the basis that it has access
to suitable infrastructure, including processing facilities, equipment, and technology
necessary for efficient and modern tomato sauce production.

6. Quality Control: The business is built on the foundation of a robust quality control
system to ensure the consistent production of high-quality tomato sauce products meeting
or exceeding industry standards.

7. Market Competition: It is presumed that the business will face competition in the
market, and strategies are in place to differentiate products, maintain quality, and
effectively market the tomato sauce offerings.

8. Environmental Sustainability: The unit assumes a commitment to environmental

sustainability, incorporating pollution control measures, energy-efficient practices, and
responsible waste management throughout its operations.

9. Financial Viability: The business presupposes financial viability, with reasonable

projections for revenue, cost management, and profitability, ensuring sustainable growth
and long-term success.

10. Consumer Preferences: The unit is established based on an understanding of evolving

consumer preferences, allowing for the development of a product range that aligns with
market trends and demands.

These basis and presumptions form the foundational elements upon which the tomato
sauce manufacturing unit operates, guiding its strategies, decision-making processes, and
overall business planning. Regular monitoring and adjustments may be necessary to adapt
to changing circumstances and market dynamics..
 IMPLEMENTATION SCHEDULE
The major activities in the implementation of the project have been listed and the
average time for implementation of the project is estimated at 12 months:

S. No Name of the Activity Period in Months (Estimated)

1. Preparation of project report 1

2. Registration and other formalities 1

3. Sanction of loan by financial institutions 3

4.
Plant and Machinery:

a) Placement of orders 1

b) Procurement 2

c) Power connection/ Electrification 2

d) Installation/Erection of machinery/ Test
2
Equipment
5. Procurement of raw materials 2

6. Recruitment of Technical Personnel etc. 2

7. Trial production 11

8. Commercial production 12

Pollution Control

A tomato sauce manufacturing unit should implement effective pollution control measures to
minimize its environmental impact. This can include:

1. Wastewater Treatment Install and maintain wastewater treatment systems to ensure

proper treatment of process water before discharge, reducing the risk of water pollution.

2. Air Quality Management: Implement air pollution control technologies

tominimizeemissions from cooking and processing activities, contributing to cleaner air in the
surrounding area.
 3. Waste Management: Adopt proper waste segregation and disposal practices, emphasizing
recycling and responsible disposal of packaging materials and other waste generated during
the manufacturing process.

4. Energy Efficiency: Incorporate energy-efficient technologies and practices to reduce overall

energy consumption, lowering both operational costs and the environmental footprint.

5. Raw Material Sourcing: Opt for sustainable and responsibly sourced raw
materials,promoting environmentally friendly practices throughout the supply chain.

6. Green Packaging: Explore eco-friendly packaging options, such as recyclable materials or

biodegradable packaging, to reduce the environmental impact of product packaging.

7. Compliance with Environmental Regulations: Stay abreast of and comply with local,
regional, and national environmental regulations, ensuring that the manufacturing processes
adhere to prescribed standards.

8. Community Engagement: Foster positive relationships with the local community by

communicating environmental initiatives, addressing concerns, and actively participating in
community environmental programs.

By prioritizing pollution control measures, a tomato sauce manufacturing unit can contribute
to environmental sustainability, meet regulatory requirements, and demonstrate corporate
responsibility..

FINANCIAL ASPECTS

A. FIXED CAPITAL

(i) Machinery and Testing Equipment’s

Machine Unit Price Total

Liquid Filling Machine 2 80000 160000

Bottle Unscrambler 1 225000 225000

 Four Side Sealed Sachet 1 260000 260000

Back Sealed Sachet 1 150000 150000

Blister & Cartoning Packege 1 85000 85000

Machine

Blister& Case Packageing 2 35000 70000

Machine

Washing Machine 2 10000 20000

Sorting Machine 2 6000 12000

Blancing Machine 1 65000 65000

Packaging Machines 1 155000 155000

Crushing Maching 4 5000 20000

Evaporator 1 125000 125000

Pasteurizer 1 78500 78500

Filling Machines 1 60000 60000

Safety Equipment - 40000 40000

Storage Tanks 1 148000 148000

Total RS. 16,37,500

(ii)Land and Building

 1 Built up area 500 Sq. mtrs.

2 Office, Stores 50 Sq. mtrs.

Working shed
3 150 Sq. mtrs.

Rent Rs.8000 (per month)

4

B.WORKING CAPITAL (PER MONTH)

(i) Staff and Labour
(iii)Raw Materials (per month)

Tomato concentrate can also be converted as juice, Ketchup/sauce, chutney etc. Other raw
material needed are sugar, salt, acetic acid (glacial), onion, garlic, sodium benzoate and spice
powder – the spice powder mix consist of clove, cinnamon, black pepper, cardamom, cumin,
mace, red Chilli powder, etc.

Utilities (per month) Rs:

Tomatos Value
2500
Other Contingent Expenses (per month)
Salt (Rs.)
750
Rent Sugar 8000
1500
PostageVinegar
and Stationery 1,000
3000
Spices and Herbs 5000
Telephone 2,000
Citric Acid 4000
Waterstores
Consumable -
2,000
16750
Total
Repairs and Maintenance 2,000

Transport charges 15,000

Advertisement and Publicity 5,000

Insurance 800

Sales expenses 3,000

Misc. expenses 1,000

Total 39,800
ADDRESSES OF MACHINERY AND TESTING EQUIPMENT SUPPLIERS

1) Tomato paste manufacturers group

3, Swami Mahal, Gurunanak Nagar,
Off. Shankarsheth Road,
Bhavani Peth,
Pune - 411002

2) Madhav Fresh Foods

No. 69/ 1, A.V.G. Layout,

SIDCO Industrial Estate Post,
Kurichi, Coimbatore - 641021

3) Maple Foods

Teghoria, Loknath Mandir,

Jhowtala Ghosh Dutta Para,
Sukantapally, Kolkata - 700157

4) Chandran Sauce

Opposite Gurudwara Somasar Sahib Vill,

Tibba, P.O. Sahnewal,
Ludhiana – 141120

5) Vikaas Food Products

Ramraj Yadav, 11-B,

Shiv Vallabh Rd, Kajupada,
Borivali East, Mumbai,
Maharashtra 400066

6) Ohms Food Pvt

1, Gat No. 1573,

Dehu Alandi Road,
Shelar Wasti Chikhli,
Near Swad Kolhapur Restaurant,
Chikhli, Pune - 412114