INTRODUCTION

India is developing country so far as the industrial development is concerned. As per as our Marathwada region is concerned Government of Maharashtra willing to establish rapid industrial development in Marathwada. Government of India (GOI) has announced a number of monetary incentives and relief to encourage commercialization and value additions to agricultural produce. India's diverse agro climatic conditions and also wide-ranging and large raw material availability throughout the year are suitable factors for the growth of food processing industry. No industrial license is required for almost all of the food & agro processing industries except some items. Use of foreign brand names is now freely permitted. Capital goods can now be freely

imported, including the second hand machinery in the food-processing sector. Moreover, excise as well as import duty has been substantially reduced and export linked duty free imports is also allowed. At

present, value addition is made only in small percentage of agricultural produce, especially in fruits and vegetables. Even though

India is the second largest producer of fruits and vegetables, wastage and value loss is very high. Primary food industry is a major industry in India with thousands of bakeries, traditional food units, and fruits, vegetable & spice processing units. Packaged food products are slowly penetrating the large Indian market of growing segment of middle class. The size of these semiprocessed, ready-to-eat food segments of bread, biscuits, bakery products, chocolates, Soya based products, ready-to-eat pasta

products, etc.

The busy life in Metropolitan and urban areas have

given boost to food processing industry in India. Ready to eat and fast food parlors are expanded all over the country and abroad. One of the most important fruits in India - banana occupies about 30 thousand hectares area with an annual production of about 47.72 thousand tones while Maharastra accounts for the highest production of bananas in the country. The other banana producing states are Tamilnadu, M.P., Kerala and Orrisa. Generally banana is consumed as a fruit. It is very cheap as compare to other fruits. So the fruit can be eaten by people who are very rich and poor because of its less price and also it contains

carbohydrates, vitamins, proteins, minerals etc. Banana is also called as poor family’s fruit. A rich and nutritious source of energy producing food, banana contains about 24.0% Carbohydrate, 1.3% protein, 0.4% fat, 0.8% ash & 73.5% water and a reasonable amount of vitamins A, B & C. It is consumed in several varieties of preparations and forms. When raw, it is used as a vegetable for cooking purposes and is easily digestible. When it gets ripe, the pulp gets soft, sweet and has a pleasant aroma. The various commercial products, which can be made out of banana, are chips/wafers, pulp, juice, powder and figs. The fruit and vegetable processing activities have been set up, or have to be established in developing countries for one or other of the following reasons:

diversification of the economy, in order to reduce present dependence on one export commodity;

government industrialisation policy; reduction of imports and meeting export demands; stimulate agricultural production by obtaining marketable products;

generate both rural and urban employment; reduce fruit and vegetable losses; improve farmers' nutrition by allowing them to consume their own processed fruit and vegetables during the off-season;

• •

generate new sources of income for farmers/artisans; develop new value-added products.

PRODUCT AND ITS IDETIFICATION
One of the most important fruits in India - banana occupies about 30 thousand hectares area with an annual production of about 47.72 thousand tones while Maharashtra accounts for the highest production of bananas in the country. The other banana producing states are Tamilnadu, M.P., Kerala and Orrisa. Total production of banana in world was 47660 thousand tones in 1991. Fruit products are now a days have very demand in the market. But banana is very much demand because it is a common man fruit. The products of banana are of various types namely Banana wafers/chips, Banana figs, Banana pulp, Banana juice etc. The banana processing industry, producing banana figs, banana chips and wafers is gaining wide importance in the present food industry. Dehydrated ripe bananas popularly known as banana figs manufactured in the small and cottage scale sectors are quite prevalent and popular as snack foods at tea stalls, restaurants, railway stations and tourist places in different parts of the country. Banana wafers and chips are a popular snack food, especially in the southern states of Kerala and Tamil Nadu.

As my project is concerned products are Banana chips / wafers, Banana powder etc. which contains vitamins, minerals and fruit is rich source of energy. I select this project because of easily availability of raw material in our region i.e. Nanded, Parbhani, and Hingoli districts. Banana is one of the important fruit from Nanded, Parbhani and Hingoli districts. There is large scale cultivation of banana crop particularly in Basmat Tq. in Hingoli districts and Ardhapur, Malegaon in Nanded districts. Bananas are cultivated throughout these three districts. So raw material is easily available. Previously banana was only seasonal crop but now days it is available throughout year i.e. in any season.

MARKET AND ITS POTENTIAL
1. The Product Uses and Its Market Potential: Banana is a rich and nutritious source of energy producing food. Banana contains about 24.0% Carbohydrate, 1.3% protein, 0.4% fat, 0.8% ash & 73.5% water and a reasonable amount of vitamins A, B & C. Banana powder is used chiefly in the baking industry for the preparation and fillings for cakes and biscuits and is also used for invalid and baby foods. Banana powder can be used in bakery and confectionery industry. It is also used in the preparation of beverages of the malted milk type and ice cream preparation. Banana powder is prepared from pulp of fruits after mashing and drying in a drum or spray driers. Then dried product is pulverized and passed through a 20 mesh sieve. It is effective in the treatment of coeliac, disease, sprie and other forms of carbohydrate intolerance in children. The keeping quality of food materials is greatly improved by the reduction in their water contents. The demand of banana powder is increasing day by day due to its end uses industry. There is bright scope of this unit. Any entrepreneur can invest in this project. There is a good marketing scope in the metropolitan cities.

Banana chips are used mostly as snack food. Banana is one of the richest iron source green vegetables. It can be preserved for three months or more by reducing moisture in it. This may be done by drying procedure or frying procedure. This is preserving art of green vegetable for long time. Banana wafers are consumed in hotels, Restaurants, Bars and house etc. This is regular consumable item. As such there is a good scope for setting up of a few more units in line. There is a good marketing scope in the cities like Mumbai, Pune, Nagpur, Aurangabad, Nanded, Latur, Nasik etc. 2. Production Targets (Per Annum): 1. Banana Chips /wafers 40 tons @ Rs. 50000.00 / ton Rs. 2000000.00 2. Banana Powder 20 tons @ Rs. 35000.00 / ton Rs. 700000.00

PROCESS OF MANUFACTURING:
Banana powder: In the manufacture of banana powder, fully ripe banana pulp is converted into a paste by passing through a chopper followed by a colloid mill. A 1 or 2 % sodium metabisulphite solution is added to improve the colour of the final product. Spray- or drum-drying may be used, the latter being favoured as all the solids are recovered. A typical spray dryer can produce 70 kg powder per hour to give yields of 8 to 11% of the fresh fruit, while drum-drying gives a final yield of about 13% of the fresh fruit. In the latter method the moisture content is reduced to 8 to 12 % and then further decreased to 2 % by drying in a tunnel or cabinet dryer at 60° C. Banana flour: Production of flour has been carried out by peeling and slicing green fruit, exposure to sulphur dioxide gas, then drying in a countercurrent tunnel dryer for 7 to 8 hr. with an inlet temperature of 75° C and outlet temperature of 45° C, to a moisture content of 8%, and finally milling.

Banana chips (crisps): Typically, unripe peeled bananas are thinly sliced, immersed in a sodium or potassium metabisulphite solution, fried in hydrogenated oil at 180 to 200° C, and dusted with salt and an antioxidant. Alternatively, slices may be dried before frying and the antioxidant and salt added with the oil. Similar processes for producing plantain chips have been developed.

QUALITY CONTROL METHODS & STANDARDS:

In general a good quality product is obtained if fruit is harvested at the correct stage of maturity and, where appropriate, ripened under controlled conditions. For example, in the case of banana figs, the fruit should be fully mature (sugar content of 19.5% or above) or the final product is liable to be tough and lacking in flavour. However, if over-ripe fruit is used, the figs tend to be sticky and dark in colour, so the fruit must be fully yellow but still firm. For banana flour, which is prepared from unripe bananas, the fruit is harvested at three-quarters the full-ripe stage and is processed within 24 hr. prior to the onset of ripening. If less mature fruit is used, the flour tastes slightly astringent and bitter due to the tannin content. Bananas harvested between 85 and 95 days after the emergence of the inflorescence, with a pulp-to-peel ratio of about 1.7, were considered to be most suitable for the deep-fat frying. Other criteria suggested for assessing maturity were betacarotene and reducing sugar content, both of which increase with increasing maturity and pH which decreases as the fruit ripens, and

these should be, respectively, about 2000 µg/100 g, less than 1.5% and 5.8 or above. Browning was found to occur if the sugar content was higher than 1.5%. The determination of crude fat in processed chips is also considered to be a necessary quality control measure. It is important to remove all impurities prior to processing of products and this is done by washing to remove dirt and spray residues and control on the processing line so that substandard fruit can be removed. Product Stability and Spoilage Problems : All dried banana products are very hydroscopic and susceptible to flavour deterioration and discoloration, but this can be overcome to some extent by storing in moisture-proof containers and sulphiting the fruit before drying to inactivate the oxidases. The dried products are also liable to attack by insects and moulds if not stored in dry conditions, although disinfestations after drying by heating for 1 hr to 80° C or by fumigation with methyl bromide ensures protection against attack. Banana powder is said to be stored for up to a year commercially and flakes have been stored in

vacuum-sealed cans with no deterioration in moisture, colour or flavour for 12 months. Banana chips tend to have a poor storage life and to become soft and rancid. However, chips treated with an antioxidant have been stored satisfactorily at room temperature in hermetically sealed containers up to 6 months with no development of rancidity. The product of banana should confirm to the F.P.O. specification manufacturer of the processed fruits and products and vegetable is controlled by the Fruit Product Order ( F.P.O.) 1955 of the Govt. of India. Hence the entrepreneur interested in this field will have to secure prior licenses from the concerned authorities and Directorate of the Ministry of Food and Agriculture, Madras.

SELECTION OF SITE OF UNIT
Location of the factory site is very important points of view of business. Location has great significance of success or failure of business. Therefore a careful consideration has been given to the relevant factor before the selection of factory location requires following points: 1. Selection of Region 2. Selection of Locality 3. Selection of Exact Location 1. Selection of Region: The region selection is very important point for smoothly running of factory. The region be so selected that raw material will get easily and abundant and continuous supply of raw material is important. 2. Selection of Locality: While working with any manufacturing product selection of locality is very important. For this project near by Parbhani is best suitable locality.

3.

Selection of Site: The land in between Parbhani city and Asola village is suitable for the production of banana processing because the land is available at cheaper rate as compare to land in Parbhani city.

SOURCES OF FINANCE
As we know that any product manufacturing unit requires source of money to establish that unit. So this very important point of view while any production. As some body says that, “as much money has power nobody is having”. It is true in the world of today for every thing, every time, every where we need money. Without which it is impossible to do any thing. For establishing a new industry finance is required. Therefore the finance is an important factor in the industry and business unit. There are various sources of finance among them we discuss following; Private Finance 1. Own Finance: The finance is created by the person who is establishing the industry. He is the only owner as he has invested the amount required for establishing the industry that finance is called Own finance.

2.

Partnership: Where more than one person provides finance to the industry.

Private & Govt. Sectors: This includes Banks, Maharashtra State Finance Corporation, Industrial and Commercial Finance Corporation, Insurance

Companies, The Indian Development Bank of India ( IDBI ), The National Small Industries Corporation Ltd. ( NSIC ), Small Industry Development Bank of India etc.

Legal Formalities
1. 2. 3. This unit must registered under the Small Scale Industry, Approval letter from Directorate of Small Scale Industry, Letter or Certificate for commencement compound under companies Act 1956, 4. No Objection certificate from Municipal Corporation about air pollution and noise pollution, 5. 6. Certificate of water supply from Municipal Corporation, Power connection letter from MSEB,

After completion of above formalities, we can start our unit legally.

CHANNELS OF DISTRIBUTION
After completing production of certain goods we have to sale it directly to the consumers. It will be possible to sale in the local market only and not in outside market so we require some persons who can sale our product outside also. They are wholesalers, retailers and agents etc.

Manufacturer Manufacturer

Wholesaler Wholesaler

Retailer

Customer Customer

Sales Promotion :

Sales promotion is the next step after introduction of the product in the market. It is an activity which is required for increasing the sales and to attract the customers towards our products. There are various steps while details of sales promotion.

Sales promotion can take a number of different forms, as, For ex:
• • •

Free samples Twins-pack bargains Temporary price reductions Promotion directed at consumers

• • •

special discounts co-operative advertising Bonuses/prizes for sales representatives Provision of display material Directed at trade

customers

ADVERTISING
Advertising is the process of communicating persuasive information about a product to target markets by means of the written and spoken word, and by visual material. The modern age is the age of competition. The acute competition has made it absolutely for manufacturer to read the customers and to find out new buyers for their products. The demand creation has become an important function now a day. The basic feature of advertisement is to bring the product as well as its features and uses to the notice of the customers. Advertising is a links between the manufacturer and customer.

Advertising Media
1. News Paper : News paper being the larger mass media available in our country. I will be placing more emphasis on news paper advertising and it gives total coverage. Being the major media in which a larger number of people look for the information therefore it is useful. 2. Out Door advertisement : We use the media for having respective effect and

supplementary media to the main advertisement. Due to its large size and excellent colour representation the product can be attracted towards the people. In which poster will be displayed at the important location in the target market cities and at important corners, with the occupying pick up points like railway stations, bus stands, etc. 3. Magazines : It creates activity in the high society class.

REQUIREMENT OF FIXED ASSETS AND BREAK EVEN POINT

Land and Building :
Rental Land and Building with covered area of 5000 sq. ft. and 3000 sq. ft. respectively. Processing area required is 3000 sq. ft. as described below:

Processing area Quality control laboratory Raw material store Packing material & machinery spares store Finished goods store Office space Toilet space Other miscellaneous space Rent per month Rent per year Rs. 3000.00 Rs. 36000.00

Square feet 1,500 100 500 100 300 300 100 100

Machinery and Equipment
1.

Cross flow tunnel drier with provision for control of temperature, humidity and

Qty. No. 1

Price in Rs. 60000.00

recirculation of air. 2. Spare wooden trolleys. 3. Extra wooden slat bottom drying trays. 4. Wooden preparation tables with aluminum
6.

4 100 4 1 1 1

6000.00 8000.00 6000.00 10000.00 20000.00 10000.00 10000.00 5000.00 5000.00 50000.00 10000.00 10000.00

sheet tops ( 4m x 3m x 1m ) Heat sealing machine with capacity to seal 4000 packets per day. Pulverizer. Platform type weighing balance. Aluminium vessels.

8. 9. 10

. 11. Big size Iron vessels for frying. 12 Big size & capacity stove. . 13 . 14 . 15 .

2 2 1

Sciling machine. Laboratory equipments. Miscellaneous equipments.

Total = Rs. 210000.00

Electrification and Installation Charges
@ 10% of the cost of machinery Rs. 21000.00

Cost of Office Equipments Non recurring expenditure

Rs. 10000.00 Rs. 241000.00

Staff and Labour ( per month ):

1. Manager-cum-chemist 2. Clerk-cum-typist

1 @ Rs. 4000.00 / month 1 @ Rs. 2000.00 / month

4000.00 2000.00 2000.00 1500.00 3000.00 8000.00

3. Store Keeper-cum-salesman 1 @ Rs. 2000.00 / month 4. Watchman 5. Skilled workers 6. Casual workers 1 @ Rs. 1500.00 / month 2 @ Rs. 1500.00 / month 10 @ Rs. 40.00 / day

Per month Per year

Rs. 20500.00 Rs. 246000.00

Raw Materials ( per month )
1. Raw Banana 2. Edible Oil 3. Spice mixture 4. Potassium meta bi-sulphite 5. Turmeric powder 6. Packing material Per Month Per year 30 tons @ Rs. 3000.00 / ton 400 kg. @ Rs. 40.00 / kg. 50 kg. @ Rs. 150.00 / kg. 10 kg. @ Rs. 100 / kg. 20 kg. @ Rs.75 / kg. 90000.00 16000.00 7500.00 1000.00 1500.00 10000.00 Rs. 126000.00 Rs. 1512000.00

Utilities ( per month )
1. Electricity 2. Fuel 3. Water 5000.00 5000.00 1000.00

Per month Per year

Rs. 11000.00 Rs. 132000.00

Other Expenses ( per month )
1. Postage and stationary 2. Consumable stores 3. Repair and maintenance 4. Insurance and Taxes 5. Advertisement and Publicity 6. Traveling and transportation charges 7. Telephone charges Per month Per year 500.00 1000.00 1500.00 1000.00 5000.00 9000.00 1000.00 Rs. 19000.00 Rs. 228000.00

Working capital ( per month )
1. Raw materials 2. Staff and Labours 3. Utilities 4. Other expenses 5. Rent Per Month Per year 126000.00 20500.00 11000.00 19000.00 3000.00 Rs.179500.00 Rs. 2154000.00

Total Capital Investment

1. Non recurring expenditure 2. Working Capital for 3 months Total capital investment:

241000.00 538500.00 Rs. 779500.00

Cost of Production ( Per annum )
1. Recurring Expenses 2. 10 % Depreciation on Machinery & Equipment 3. Depreciation on Office equipment @ 20 % 4. Interest on capital investment @ 15 % 2154000.00 21000.00 2000.00 116925.00

Total Cost of Production =

Rs. 2293925.00

Total Sales ( Per annum )

1. Banana Chips / wafers 40 tons @ Rs. 50000.00 / ton 2000000.00 2. Banana Powder 20 tons @ Rs. 35000.00 / ton 700000.00

Total Sales( S ) (per annum ) = Rs. 2700000.00

Profitability ( Per annum )
1. Profit = Total sales – Cost of production

(Sales Return per annum) = 2700000.00 – 2293925.00

Profit

=

Rs. 406075.00

Profit

2. Rate of Return = ------------------------------ x 100 Capital Investment

406075 = -------------------- x 100 779500 Rate of Return = 52.09 %

CALCULATION OF BREAK EVEN POINT ( B. E. P. )
Fixed Cost B. E. P. = ------------------P / V ratio

( Break Even Point )

Fixed Cost =

246000.00 + 21000.00 + 2000.00 + 116925.00

F.C. =

Rs. 385925.00

Variable cost

=

1512000.00 + 132000.00 + 128000.00

V.C. =

Rs.1872000.00

Contribution

= =

Sale ( S ) – Variable Cost ( V. C. ) 2700000.00 – 1872000.00 Rs.828000.00

C

=

Contribution (C ) P / V ratio = --------------------------- x 100 Sale ( S )

828000.00 = --------------------- x 100 2700000.00

P / V ratio

=

30.66 %

Fixed Cost ( F. C. ) B. E. P. = ---------------------------P / V ratio

385925.00 = -----------------30.66 % 385925.00 = ----------------- x 100 30.66 = 1258724.72

B. E. P.

=

Rs.1258725.00

F. C. x 100 B. E. P. = ----------------------Contribution

385925.00 x 100 = ------------------------828000.00

B.E. P.

=

46.72 %

SUPPLIERS OF RAW MATERIAL
Local farmers are the suppliers for the raw material.

MACHINERY AND EQUIPMENT SUPPLIERS 1. Sanjay Steel Builders, Matruchhaya. N.S. Road, Near Syndicate Bank, Mulund, Mumbai-80.

2.

M/s. Gardens Corporation, 6, Doctor’s lane, Near Gole Market, P.B.No.: 299, New Delhi-1

3.

M/s. M. N. Engineers, C/6, Vastu Sunder Society, Near Police Walkshop, Aundh. Pune7.

4.

M/s. B. Sen. Barry and Co. 65/11 Rohtak Road, Carol Baugh, New Delhi-5.

5.

M/s. Nirmal Trading, 768 Sadashiv Peth, Fadtare Squre, pune-30.

6.

M/s. Milky-way, Mumbai-Pune Road, Shivaji Nagar, Pune-5

7.

M/s. Ken Dryer Corporation, 109, Manohar Pukur Road, Calcutta-2.

8.

M/s. H & P Industries, Near Mundupalam, Tritur-6.

SOURCES OF INFORMATION
1. 2. District Industrial Centre, Parbhani. Entrepreneurship Development By : Vasant Desai.
3.

National seminar on “Banana” (Production, Post Harvest Technology & Export). Date 15 th & 16 th Oct 1999 Organised by : Agricultural & Processed Food Products Export Development Authority, New Delhi.

4.

R & D at the CFTRI (1951-1980) By : M.R. Raghavendra Rao, K.R. Bhattacharya & J.V.Shankar

5.

Preservation Of Fruits and Vegetables By : Giridhari Lal, G.S. Siddappa & G.L.Tandon

6.

Industrial Engineering and Management By : O.P.Khanna

7.

National Institute Of Industrial Research ( NIIR ) Website : www.niir.org

8.

A Project Report on Starting A New Entreprise Of “Banana Processing” By : Mr. S. Ajeet Singh (MBA 1994-1995 )

CONCLUSION
Now a days the fast food fashion is very common. Every one is taking fast food for the test. If the fast food is out of limit then it will be injurious to health because it increases cholesterol in your body. Due to that the various diseases like Heart attack, Blood Pressure arising. If will give the same taste without cholesterol then our food demand will increase automatically. The banana wafers is a natural product which is made by banana. Banana is having no side effect on your body. If we will serve the banana chips as a Hot chips which the trend is very fastly developing then we may get best output from our business and it will increases our profit.

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