Detailed Project Report on Pickles and Chutney Processing

RAJASTHAN AGRICULTURAL

COMPETITIVENESS PROJECT

Detailed Project Report on

Pickles and Chutney Processing

Prepared by:

AGRI BUSINESS PROMOTION FACILITY

Rajasthan Agricultural Competitiveness Project 1

Table of Contents

List of Figures 2

List of Table 3

Chapter 1-Introduction of Pickles and Chutney 4

Chapter 2- Overview of the Pickle & chutney Industry 11

Chapter 3-Technical Process Flow 14

Chapter 4- Technology Options Available 20


Figure 1: Pickle ............................................................................................................................... 4 Figure 2: Chutney............................................................................................................................ 5 Figure 3 Flow Chart of Pickling Process from Fruits & Vegetables ............................................... 15 Figure 4 Flow Chart of Chutneys Process from Fruits & Vegetables ............................................ 16 Figure 5 Raw Mango and lemon Cutting Machine ........................................................................ 16 Figure 6 Vegetable Cutter and chilly cutter ................................................................................... 17 Figure 7 Pickle Mixing Machine and capping machine.................................................................. 17 Figure 8 Crusher and pulper ......................................................................................................... 17 Figure 9 jacketed Kettle and Vacuum filling machine .................................................................... 17 Figure 10 Crown Corking Machine ................................................................................................ 18

List of Figures


Table 1: Details of vegetable production ......................................................................................... 7 Table 2: Vegetable Area, production, yield in past 3 years ............................................................ 7 Table 3: Key fruits of Rajasthan ...................................................................................................... 8 Table 4: Fruits, area, production and yield in past 3 years .............................................................. 8 Table 5 Production profile of Bansur cluster ................................................................................... 9 Table 6 Production profile of Bonli cluster ....................................................................................... 9 Table 7 Production profile of Gudha cluster .................................................................................. 10 Table 8: Assumptions for Captive Model ....................................................................................... 20 Table 9: Project Cost Summary .................................................................................................... 20 Table 10: Means of Finance Summary ......................................................................................... 21 Table 11: Civil Cost Summary ....................................................................................................... 21 Table 12: Utilities and other project components .......................................................................... 21 Table 13: Plant and Machinery ..................................................................................................... 22 Table 14 Assumptions ................................................................................................................... 23 Table 15: Income Statement ......................................................................................................... 24 Table 16: Balance Sheet ............................................................................................................... 25

List of Table


Pickle is a food that is made by the process of pickling. Pickling is the process

of preserving (expanding the lifespan) of fruit or vegetable by anaerobic

fermentation in brine or immersion in vinegar. Although the pickling process

expands the lifespan of the food, it affects the texture and taste of the food.

Foods that can be pickled can include fruits, vegetable and even meat.

Pickles typically include raw and whole vegetables/fruits. They may also contain

sugar, honey, herbs and spices such as ginger and cloves. There are some

types of pickles such as sweet pickles that do not include whole fruits or

vegetables. However, these also contain larger pieces of vegetables.

Figure 1: Pickle

Chutney is a spicy condiment of Indian origin, made of fruits or vegetables with

vinegar, spices, and sugar. In India, you can get chutneys with almost every

meal. Their taste can range from sweet to sour to spicy or a combination of any

of these. Meanwhile, their texture may be chunky or thin. Chutneys may include

a wide range of ingredients including fruits, vegetables and spices. The

ingredients (i.e., fruits and vegetable) in a chutney are typically cut into small

pieces, and the mixture is cooked for a long time.

Chapter 1-Introduction of

Pickles and Chutney


Figure 2: Chutney

The main ingredients for preparing any Pickles and Chutney are fruits and

vegetables.

1.1 Global scenario - Fruits and Vegetables

Globally, food processing is the largest sector across the world considering the

number of enterprises involved in the sector. Its significance and potential may

be also ascribed to the scope for economic value addition offered in the sector.

In this circumstance, it is hardly surprising that the global food processing

industry is pegged at USD 3.2 trillion.

The global processing industry has experienced consistent demand over the

five years to 2017, as economies of every size continue to consume processed

products and consumer spending increases as the world recovers from global

recession. Demand has grown particularly faster in developing economies as

industrial growth has translated into greater urbanization, higher per capita

incomes and expansion in the size of the middle class. As the global middle

class has grown, it has demanded larger quantities of higher quality and more-

diverse food. Industry demand is expected to increase as producers focus on

nutritious ingredients and less invasive processing techniques in order to keep

products as organic as possible. USA and China processes their 90 per cent

and 40 per cent produce. Other developing countries, such as Thailand,

Philippines, and Brazil are processing as high as 30, 78 and 70 per cent of their

produce.


1.2 Indian Scenario - Fruits and Vegetables

1India's diverse climate ensures availability of all varieties of fresh fruits &

vegetables. It ranks second in fruits and vegetables production in the world,

after China. As per National Horticulture Database published by National

Horticulture Board, during 2015-16, India produced 90.2 million metric tonnes of

fruits and 169.1 million metric tonnes of vegetables. The area under cultivation

of fruits stood at 6.3 million hectares while vegetables were cultivated at 10.1

million hectares.

Though India's share in the global market is still nearly 1% only, there is

increasing acceptance of horticulture produce from the country. This has

occurred due to concurrent developments in the areas of state-of-the-art cold

chain infrastructure and quality assurance measures. Apart from large

investment pumped in by the private sector, public sector has also taken

initiatives and with APEDA's assistance, several centres for Perishable produce

and integrated post-harvest handling facilities have been set up in the country.

Capacity building initiatives at the farmers, processors and exporters' levels has

also contributed towards this effort.

1.3 Rajasthan Scenario – Fruits and Vegetables

Rajasthan harbours a variety of fruits and vegetables and this section details

the diversity in the production profile of Rajasthan elaborating on the districts

and their production.

The table below captures the analysis for key crops of Rajasthan and highlights

that Onion followed by Potato and Tomato hold maximum potential for creating

a market as they account for 63.4%, 12.9% and 5% of the total vegetable

production of the state.

1 http://apeda.gov.in

http://apeda.gov.in/


Table 1: Details of vegetable production

Crop Production

(MT)

% Share in Total

Veg.

Yield (Prod

MT/ Area Ha)

AREA (Ha)

% Share in Total

Veg.

Rajasthan as % of

India (%)

Onion 1,149,291 63.4% 18.4 62,499 36.7% 6.9%

Potato 234,552 12.9% 16.1 20,366 12.0% 0.5%

Tomato 90,224 5.0% 4.4 14,552 8.6% 0.4%

Cauli flower 58,404 3.2% 5.3 13,831 8.1% 0.6%

Pea 36,375 2.0% 2.6 10,964 6.4% 0.7%

Brinjal 31,715 1.7% 5.4 5,881 3.5% 0.2%

Spinach 20,808 1.1% 4.9 5,514 3.2% 0.2%

Carrot 19,771 1.1% 5.3 4,673 2.7% 0.7%

Green Chili 16,154 0.9% 2.9 4,274 2.5% 0.3%

Okra 15,379 0.8% 4.2 3,865 2.3% 0.2%

Total

92.3%

86.1%

Source: Rajasthan Horticulture Department, Data pertains to year 2016-17

1.3 District and Cluster Scenario

Table 2: Vegetable Area, production, yield in past 3 years

Name of Vegetable

s

2015-16 2016-17 2017-18

Area (ha)

Prod. (MT)

Yield (Kg/Ha)

Area (ha)

Prod. (MT)

Yield (Kg/Ha)

Area (ha)

Prod. (MT)

Yield (Kg/Ha)

Onion 86306 1435112

16628 62499

1149291

18389 64760

996733

15391

Tomato 20507 83286 4061 20366

90224 4430 18115.6

88732 4898

Potato 14322 229829

16047 14552

234552

16118 13819

278519

20155

Brinjal 6078 25789 4243 5881 31715 5393 5423.2

29602.8

5459

Okra 3282 10340 3151 3702 15379 4154 4153 21393 5151

Round Gourd (Tinda)

6645 14650 2205 3865 11190 2895 3838.5

14273.5

3719

Cucumber

2334 7018 3007 1184 5239 4423 576 2646 4594

Long Melon

1130 3021 2673 2240 10193 4550 2214 13989 6318

Pumpkin 1273 16449 12921 819 8539 10426 629 5623 8940

Bottle Gourd

4435 15131 3412 4673 27168 5814 4539 23825.3

5249

Ridge Gourd

1495 3973 2658 1161 4525 3898 1219 5893 4834

Bitter Gourd

822 2331 2836 723 2306 3192 524 1599 3052

Cole crops

13857 56083 4047 12250

77992 6367 11455

63393 5534

Carrot 1530 8904 5820 3745 19771 5279 3390 27039 7976

Radish 851 3403 3999 1094 5071 4634 514 3103 6037

Peas 14219 31280 2200 13831

36375 2630 12923

33358 2581

Cluster Bean

694 976 1406 979 2664 2721 1232 3644.5

2958

Sweet Potato

1003 9602 9573 520 6516 12531 554 8659 15630


Name of Vegetable

s

2015-16 2016-17 2017-18

Area (ha)

Prod. (MT)

Yield (Kg/Ha)

Area (ha)

Prod. (MT)

Yield (Kg/Ha)

Area (ha)

Prod. (MT)

Yield (Kg/Ha)

Spinach 2909 15974 5491 4274 20808 4869 2515.43

15814 6287

Colocasia 378 1346 3561 413 2836 6867 317 2522 7956

Water Melon

2929.94

27564 9408 2518 23607 9374 2013 19504 9689

Musk Melon

981.78

6661.5

6785 1186 5679 4789 1001.1

6095 6088

Others 6663 12234 1836 7657 21208 2770 10509

33624 3200

Total 194645

2020957

10383 170132

1812848

10656 166234

1699584

10224


The various spices give unique flavor and fragrance to the food. The major

spices used in almost all the Rajasthani food such as red chilies, pepper,

cloves, mustard seeds, cardamoms, cinnamon sticks, cumin seeds and dried

mango powder. These spices also allow the prepared food to last long in the hot

climatic conditions of Rajasthan. The spices also lend the required color and

texture to the gravies and curry used in many of the Rajasthani foods.

The district wise production of Chilli is highlighted in a graph blow. While Jaipur

dominates the production of Chilli followed by Bundi and Alwar in Rajasthan.

After the analysis of key crops of the state of Rajasthan, we analyse the fruit

production profile for fruits of Rajasthan and the following section will capture

the same and will also highlight the district wise scenario of fruits. The figure

below provides the glimpse of the same.

Table 3: Key fruits of Rajasthan

Fruits Production (MT)

% Share in Total Veg.

Yield (Prod MT/ Area Ha)

Rajasthan as % of India (%)

Orange 496,950 55.5% 21.3 4.1% (Citrus)

Kinnow 204,260 22.8% 21.4

Mango 88,837 9.9% 17.2 0.4%

Guava 27,176 3.0% 6.5 1.0%

Lime 16,659 1.9% 5.7 Citrus

Aonla 13,747 1.5% 8.6 1.5%

Malta 12,816 1.4% 128.2 Citrus

Pomegranate 10,379 1.2% 3.6 0.4%

Papaya 8,708 1.0% 11.7 0.2%

Ber 4,697 0.5% 6.8 1.6%

Total 98.7% Source: Rajasthan Horticulture Department, Data pertains to year 2016-17

Table 4: Fruits, area, production and yield in past 3 years

NAME OF

FRUITS

2014-15 2015-16 2016-17

Area (ha)

Prod. (MT)

Yield (Kg/Ha)

Area (ha)

Prod. (MT)

Yield (Kg/Ha)

Area (ha)

Prod. (MT)

Yield (Kg/Ha)


NAME OF

FRUITS

2014-15 2015-16 2016-17

Area (ha)

Prod. (MT)

Yield (Kg/Ha)

Area (ha)

Prod. (MT)

Yield (Kg/Ha)

Area (ha)

Prod. (MT)

Yield (Kg/Ha)

Mango 5454 78673 14425 5001 82268 16451 5164 88837 17204

Guava 2457 23075 9392 3850 41354 10743 4171 27176 6516

Lemon 3001 21221 7071 2891 16363 5659 2947 16659 5653

Orange 1181

0 26438

9 22387

12477

267343

21427 2334

9 49695

0 21284

Kinnow 8678 30067

0 34647 8821

189483

21482 9547 20426

0 21396

Mosambi

1373 3841 2798 192 2349 12226 206 2159 10498

Malta 85 600 7059 82 38 468 100 12816 128236

Pomegranate

2065 7844 3799 2465 10050 4077 2857 10379 3633

Ber 857 7003 8172 714 6732 9426 695 4697 6756

Aonla 1609 12888 8010 1656 14099 8514 1603 13747 8574

Papaya 464 5676 12233 717 10718 14956 743 8708 11720

Grapes 1 10 10000 5 25 4889 3 7 2296

Sapota 11 50 4545 13 36 2803 11 56 5034

Banana 30 244 8133 35 405 11706 36 345 9509

Phalsa 102 215 2108 23 47 2013 35 62 1791

Sitaphal 534 4555 8530 524 6121 11671 546 4284 7846

Other 636 3386 5324 865 3182 3680 747 3394 4544

Total 3916

7 73434

0 18749

40329

650610

16133 5275

9 89453

5 16955


Scenario in RACP cluster

Out of 17 clusters of RACP, only 3 clusters have majority of Fruits and

Vegetables production. These clusters can be aimed at for setting up of pickles

and chutneys unit.

Table 5 Production profile of Bansur cluster

# Name of Fruits and Vegetables Area (Ha) Production (MT)

1 Tomato 300 12000

2 Chilli 300 7500

3 Bottle Gourd 400 16000

4 Radish 500 15000

5 Green peas 100 20000

Table 6 Production profile of Bonli cluster


1 Guava 310 744

2 Tomato 54.19 65.28



3 Onion 54.19 75.26

4 Okra 27.08 14.54

5 Pea 23.69 28.42

Table 7 Production profile of Gudha cluster


1 Potato 140 2,140

2 Brinjal 175 33,400

3 Tomato 550 12,100

4 Green Chilli 220 4,700

5 Cabbage 450 11,800

6 Bottle Gourd 10 80

7 Cauliflower 265 4,650

8 Carrot 50 1,000

9 Radish 35 550

10 Okra 95 450

11 Pea 1,520 12,160

12 Spinach 450 4,500

13 Fenugreek Leaves 620 6,200

14 Garlic 8,000 78,000


2.1 Global scenario

The global pickles market reached a value of US$ 10.3 Billion in 2018. Pickles

are a rich source of essential nutrients like vitamins, iron, calcium and

potassium and possess anti-oxidant properties. They are prepared to preserve

or extend the lifespan of a fruit, vegetable or a mix of both, by either anaerobic

fermentation in brine or immersion in vinegar. They are known for a wide range

of health benefits, such as improving digestion, supplying essential minerals

and vitamins and reducing ulcers. In recent years, the aggressive promotional

activities by the manufacturers have increased the popularity of cross-cultural

cuisine which, in turn, has helped in driving the demand for pickles worldwide.

Market Drivers:

In recent years, non-GMO and organic pickles have gained traction among

health-conscious consumers. These products are made without preservatives

and other synthetic chemicals which can have a negative impact on health.

Moreover, the manufacturers are introducing new flavors as per the local tastes

and preferences of consumers. The leading companies are also offering

convenient and cost-effective packaging options for pickles to facilitate ease of

use and on-the-go consumption. These packaging variants range from glass

jars, PET jars and single-serve packs to stand-up and multi-layered coextruded

pouches to polypropylene injection moulded containers with flexible heat-

sealable and peelable lids. According to IMARC Group, the market is projected

to cross US$ 12.3 Billion by 2024, at a CAGR of 3% during 2019-2024.

Major players of the global pickle market include ADF Foods (India), Del Monte

Foods (U.S.), Mt. Olive Pickle Company (U.S.), Kraft Foods Inc. (U.S.), Reitzel

International (Switzerland), Pinnacle Foods, Inc. (U.S) and Mitoku Company,

Ltd. (Japan) among others.

2.2 Indian Scenario

Pickles & chutney is the traditional specialties product of India and has

gained an important position in the Indian cuisine.

They are eaten along with main course and provide tempting tastes.

Chapter 2- Overview of the Pickle & chutney Industry


Pickles are prepared from Fruits and Vegetables and they supplement

the food with vitamins and minerals.

There are many types of pickles available in India like Chilly Pickles,

Green Pickles, Lemon Chutney, Mango chutney, Gherkins, Mango

Pickles, Onion Prpd/Prsvd and Tomato chutney etc.

India’s Export of Pickles & chutney was Rs. 250.62 Crores in 2007-08.

The major market for Indian Pickles & chutney are Russia, U.S.A,

Belgium, Netherlands and France

Top 5 Pickle Manufacturing Companies in India

Priya Foods

Mothers Recipe


MTR FOODS

Cavinkare

Bedekar


3.1 Processing of Pickles

The preservation of food in common salt is known as pickling. It is one of the most ancient

methods of preserving vegetables. Pickles are good appetizers and add to the palatability of

a meal. Mixed Vegetable pickle ranks first followed by cauliflower, onion, turnip and lime

pickles. The growth of a majority of spoilage organisms is inhibited by brine containing 10-

12 per cent salt. Pickling is the result of fermentation by lactic acid-forming bacteria" which

are generally present in large numbers on the surface of fresh vegetables and fruits. Class I

preservatives improves the taste and flavour and hardness of the tissue of vegetables and

controls fermentation.

3.2 Processing of Chutneys

Good quality chutney should be palatable and appetizing. Mix Vegetables chutney is an

important food product exported from India to many countries. Apple and apricot chutneys

are also very popular in the country. The method of preparation of chutney is similar to that

for jam except that spices, vinegar and salt are added. The fruits/vegetables are peeled,

sliced or grated, or cut into small pieces and cooked in water until they become sufficiently

soft. The quality of chutney depends to a large extent on its cooking which should be done

for a long time at a temperature below the boiling point. To ensure proper thickening,

cooking is done without a lid even though this results in some loss of volatile oils from the

spices. Chopped onion and garlic are added at the start to mellow their strong flavours.

Spices are coarsely powdered before adding. Vinegar extract of spices may be used

instead of whole spices. Spice and vinegar are added just before the final stage of cooking,

because prolonged boiling cause loss of some of the essential oils of spices and of vinegar

by volatilization.

Chapter 3-Technical Process Flow


Figure 3 Flow Chart of Pickling Process from Fruits & Vegetables

Selection of Fruits & Vegetable

Washing

Size reducation

Brine (10-12 % + glacial acetic + 100 PPM KMS)

Desalting/Freshing

Pickling ( Salt /Vinegar/oil /combination)

Add Preservative (sulphurdioxide 100 PPM)

Packing

Store at ambint Temperature


Figure 4 Flow Chart of Chutneys Process from Fruits & Vegetables

Figure 5 Raw Mango and lemon Cutting Machine

Selection of Vegetable

Washing

Peeling / Deseeding

Grating /Slicing

Cooking with littel water for making highly soft

Mixing with Spices & salt and Leaving for one hr

Addition of vinegar

Cooking for 2-5 Min

Hot filling in to dry and sterilized bottle

Sealing (air tight )

Storage at ambient temperature


Figure 6 Vegetable Cutter and chilly cutter

Figure 7 Pickle Mixing Machine and capping machine

Figure 8 Crusher and pulper

Figure 9 jacketed Kettle and Vacuum filling machine


Figure 10 Crown Corking Machine

3.3 Quality Control

Taste samples are made from each batch throughout the manufacturing

process, usually at a rate of once per hour. The tasters check the chips for salt,

seasoning, moisture, colour, and overall flavour. Colour is compared to charts

that show acceptable chip colours.

3.4 Quality Standards

Following specifications under Bureau of Indian Standard related to processing

of such products may be referred:

IS: 4626-1978

IS: 2860-1964

IS: 7254-1974 6.2.

FSSAI License: FSSAI License is issued by the Food Safety and Standards

Authority of India (FSSAI), Ministry of Family Health & Welfare, Government of

India. Application to commence a food business must be made to the FSSAI in

the prescribed format. Based on the application and supporting documents,

FSSAI will accord approval. The Food Safety and Standards (Licensing and

Registration of Food Businesses) Regulations 2011introduced to improve the

hygiene and quality of food has brought about tremendous changes in the food

industry. As per the Act, no person shall commence or carry on any food

business except under a FSSAI license or FSSAI registration. Therefore, any

food manufacturing or processing or packaging or distributing entity is now

required to obtain a FSSAI License or Registration.

Pollution Control: There is no major pollution problem associated with this

project in terms of air and sound pollution except for disposal of waste water


which would be managed appropriately through recycling facility. However,

entrepreneur should obtain NOC from concerned State Pollution Control Board.

Effluent Disposal: Disposal of any effluent out of the project unit should be

treated with recycling facility or dumped in such a way that these does not

cause hazard in the vicinity of the site.

Energy Conservation: Proper care should be taken in order to use appropriate

amount of fuel and electricity.


We propose a medium end technology option for pickles and chutney. The

medium end option includes a Semi-Automatic processing plant of 500 Kg per

day input capacity.

4.1. Business Assumption

The business plan has assumed that the business model operates under

Captive Mode. The Captive Model involves direct procurement of raw material

and selling of product in the market after processing.

The assumptions for the line of processing under Captive Model is given below:

Table 8: Assumptions for Captive Model

Business Case –

Assumptions

Year

1

Year

2

Year

3

Year

4

Year

5

Year

6

Year

7

Year

8

Year

9

Year

10

Captive Trading 0 90% 90% 90% 90% 90% 90% 90% 90% 90%

4.1.1. Project Cost

The total cost of the project is estimated at Rs.50.34 Lakhs, out of which civil

cost constitutes Rs 16.80 Lakhs, plant and machinery constitutes Rs. 20.32

Lakhs, utilities & support of Rs. 8.14 Lakhs, Interest during construction of Rs.

2.08 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 9: Project Cost Summary

Project Cost Amount (Rs. lakh)

Civil Cost 16.80

Plant & Machinery 20.32

Utility & Support 8.14

Preliminary & Pre-operative expenses 3.00

IDC 2.08

Total Project Cost 50.34

Note: We have not considered the land cost in this business model

Chapter 4- Technology Options

Available


4.1.2. Proposed Means of Finance

The promoter’s equity in the project is Rs 25.34 Lakhs which is almost 50 per

cent of the total project cost. The term loan considered for the project is

estimated at Rs. 25.00 Lakhs.

Table 10: Means of Finance Summary

Means of Finance Amount (Rs. lakh)

Total Project Cost 50.34

Funding

Equity (Promoters Cost) 25.34

Debt 25.00

Total Funding Required 50.34

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.

4.1.3 Civil Work The total cost of civil work has been estimated to be Rs 16.80 lakhs. Cost of

civil work comprises of the area of machine, Raw material storage & Finished

goods storage.

Table 11: Civil Cost Summary

Civil Cost Total Area (SQM) Total Civil Cost (Rs. Lakh)

Potato Processing Machine 100 16.80

Total Civil Cost 100 16.80

4.1.4 Utilities and other project components The total cost of Utilities has been estimated to be Rs 8.14 lakhs, which

includes water storage of 20,000 LT/hour, generator set of 30 KVA, weighing

scale, and electrical wires & panel.

Table 12: Utilities and other project components

Utility & Support Infrastructure Capacity

(No. of Units) Overall Cost (INR Lacs)

Water Storage 10000 LT 0.59

Generator 30 KVA 5.19

Weighing Scale 4 1.18

Transformer / Electrical wires and Panel 1.18

Total Utility & Support

8.14

4.1.5. 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. 20.32 Lakhs (including IGST). The following table

captures the components under Plant & Machinery.


Table 13: Plant and Machinery

Plant & Machinery Total Cost (Rs.)

Plant & Machinery

Raw Fruit Cutting Machine 177,000

Lemon Cutting Machine 74,340

Vegetable Cutter 236,000

Chilly Cutting Machine 74,340

Pickle Mixing 84,960

Cap Sealing Machine 31,860

Fruits Mill Crusher 42,480

Pulper And Finisher 265,500

Steam Jacketed Kettle 212,400

Steam Boiler 743,400

Hand Pallet Truck 23,600

Crown Corking Machine 53,100

Vacuum Filling Machine 12,744

Total Cost 2,031,724


4.1.6. Assumptions Table 14 Assumptions

Revenue Assumptions Units Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Installed Capacity

Hours in a Day 8

Number of Shifts per day number 1 1 1 1 1 1 1 1 1

Installed Capacity - Kgs per hour Kgs/hour 62.5 62.5 62.5 62.5 62.5 62.5 62.5 62.5 62.5 62.5

Installed Capacity - Kgs per day Kgs/day 500 500 500 500 500 500 500 500 500 500

Actual Available Capacity Kgs/day 500 500 500 500 500 500 500 500 500

Capacity Utilisation (%) of machine % 90% 90% 90% 90% 90% 90% 90% 90% 90%

Capacity Utilisation (%) based on product

Pickle 40% 40% 40% 40% 40% 40% 40% 40% 40%

Chutney 60% 60% 60% 60% 60% 60% 60% 60% 60%

Quantity of raw material required based on capacity

Lemon Kgs/day 180 180 180 180 180 180 180 180 180

Green chilly Kgs/day 270 270 270 270 270 270 270 270 270

Quantity of raw material after normal loss % Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Lemon 20% 144 144 144 144 144 144 144 144 144

Green chilly 20% 216 216 216 216 216 216 216 216 216

Quantity of raw material as per product

Lemon Pickle

Lemon Kgs/day 90% 144 144 144 144 144 144 144 144 144

Other spices including salt Kgs/day 10% 16 16 16 16 16 16 16 16 16

Green chilly chutney

Green chilly Kgs/day 70% 270 270 270 270 270 270 270 270 270

Salt Kgs/day 15% 58 58 58 58 58 58 58 58 58

Other spices Kgs/day 15% 58 58 58 58 58 58 58 58 58

Final product after processing loss

processing loss

Lemon Pickle Kgs/day 30% 112 112 112 112 112 112 112 112 112

Green chilly chutney Kgs/day 20% 309 309 309 309 309 309 309 309 309

No. of Days of operation no. 250 250 250 250 250 250 250 250 250

Operational Cost Assumptions Units YOY inc. Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Purchase Price of Lemon Rs/kg 5%

80.0 84.0 88.2 92.6 97.2 102.1 107.2 112.6 118.2

Purchase Price of Green chilly Rs/kg 80.0 84.0 88.2 92.6 97.2 102.1 107.2 112.6 118.2


Revenue Assumptions Units Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Purchase Price of Salt Rs/kg 10.0 10.5 11.0 11.6 12.2 12.8 13.4 14.1 14.8

Purchase Price of other spices Rs/kg 100.0 105.0 110.3 115.8 121.6 127.6 134.0 140.7 147.7

Selling Price Assumptions Units YOY inc. Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Pickle (Lemon) Rs/kg 5%

150.00

157.50

165.38

173.64

182.33

191.44

201.01

211.07

221.62

Chutney (Green chilly) Rs/kg 200.0

0 210.0

0 220.5

0 231.5

3 243.1

0 255.2

6 268.0

2 281.4

2 295.4

9

4.1.7 Income Statement The below mentioned is the income statement for low end processing line:

Table 15: Income Statement

Particulars (Amount Rs. Lakh) Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Lemon Pickle 42.00 44.10 46.31 48.62 51.05 53.60 56.28 59.10 62.05

Green chilly chutney 154.29 162.00 170.10 178.61 187.54 196.91 206.76 217.10 227.95

Total Income 196.29 206.10 216.41 227.23 238.59 250.52 263.04 276.19 290.00

Raw Material

Lemon 28.80 30.24 31.75 33.34 35.01 36.76 38.59 40.52 42.55

Green chilly 54.00 56.70 59.54 62.51 65.64 68.92 72.37 75.98 79.78

Salt 1.45 1.52 1.59 1.67 1.76 1.85 1.94 2.04 2.14

Other spices 18.46 19.39 20.36 21.37 22.44 23.57 24.74 25.98 27.28

Power 4.78 5.02 5.27 5.54 5.81 6.11 6.41 6.73 7.07

Packing Cost 10.51 11.04 11.59 12.17 12.78 13.42 14.09 14.79 15.53

Water 0.14 0.15 0.15 0.16 0.17 0.18 0.19 0.20 0.21

Total Direct Expenses 118.15 124.06 130.26 136.77 143.61 150.79 158.33 166.25 174.56

Gross Profit 78.14 82.04 86.15 90.45 94.98 99.72 104.71 109.95 115.44

Manpower 10.32 10.84 11.38 11.95 12.54 13.17 13.83 14.52 15.25

Repairs & Maintenance 2.26 2.38 2.49 2.62 2.75 2.89 3.03 3.18 3.34

Insurance 0.56 0.58 0.61 0.64 0.68 0.71 0.75 0.78 0.82

Admin Expenses 6.00 6.30 6.62 6.95 7.29 7.66 8.04 8.44 8.86


Particulars (Amount Rs. Lakh) Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Transportation Expenses 0.93 0.78 0.82 0.86 0.91 0.95 1.00 1.05 1.10

Selling & Distribution Expenses 9.81 10.82 11.36 12.53 13.15 14.50 15.23 16.79 17.63

Total In-Direct Expenses 29.88 31.70 33.29 35.55 37.32 39.88 41.87 44.77 47.01

EBITDA 48.26 50.34 52.86 54.91 57.65 59.84 62.84 65.18 68.44

Depreciation for Civil Works 1.20 1.56 1.40 1.26 1.14 1.02 0.92 0.83 0.75

Depreciation on P&M 2.18 2.72 2.31 1.97 1.67 1.42 1.21 1.03 0.87

Depreciation on Others Components 0.58 0.90 0.79 0.70 0.62 0.54 0.48 0.42 0.25

Others (Amortization - IDC, Pre-ops, Contingency) 1.02 1.02 1.02 1.02 1.02 - - - -

Sub-Total 4.97 6.20 5.53 4.94 4.44 2.99 2.61 2.28 1.87

EBIT 43.28 44.15 47.33 49.96 53.21 56.86 60.23 62.90 66.57

Interest on Term Loan 2.26 1.94 1.59 1.20 0.78 0.31

Interest on Working Capital - Normal 3.17 4.71 4.16 4.37 4.58 4.81 5.05 5.31 5.57

PBT 37.85 37.49 41.59 44.39 47.85 51.73 55.18 57.60 61.00

Tax 1.77 6.12 10.60 11.44 12.48 13.64 14.68 15.40 16.42

PAT 36.09 31.37 30.99 32.95 35.37 38.09 40.50 42.19 44.57

4.1.8. Balance Sheet The below mentioned is the balance sheet statement for low end processing line of potatoes:

Table 16: Balance Sheet

TOTAL LIABILITIES (Amount 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 25.34 25.34 25.34 25.34 25.34 25.34 25.34 25.34 25.34 25.34

PAT - 36.09 31.37 30.99 32.95 35.37 38.09 40.50 42.19 44.57

PAT after appropriations - 36.09 67.45 98.44 131.39 166.76 204.85 245.34 287.54 332.11

Sub-Total 25.34 61.42 92.79 123.78 156.73 192.10 230.18 270.68 312.87 357.45


TOTAL LIABILITIES (Amount Rs. Lakh) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

Year 10

B) Debt Term Loan - Outstanding 25.00 21.75 18.17 14.25 9.94 5.20 - - - -

Sub-Total 25.00 21.75 18.17 14.25 9.94 5.20 - - - -

C)Current Liabilities

Creditors - others - 1.24 1.30 1.36 1.43 1.50 1.58 1.66 1.74 1.82

Creditors - Raw Material - 1.73 1.81 1.91 2.00 2.10 2.21 2.32 2.43 2.55

Bank Finance - Working Capital - 19.80 24.75 25.99 27.29 28.66 30.09 31.59 33.17 34.83

Total Current Liabilities - 22.77 27.86 29.26 30.72 32.26 33.87 35.56 37.34 39.21

TOTAL LIABILITIES 50.34 105.94 138.83 167.28 197.39 229.56 264.05 306.24 350.21 396.65

TOTAL ASSETS D)Land - - - - - - - - - -

Fixed Assets

Gross Block (Civil + P&M) 28.87 45.26 41.30 36.12 31.61 27.68 24.26 21.27 18.67 16.39

Purchases 16.39 - - - - - - - - -

Less: Depreciation - 3.96 5.18 4.51 3.93 3.42 2.99 2.61 2.28 1.87

Sub-Total 45.26 41.30 36.12 31.61 27.68 24.26 21.27 18.67 16.39 14.52

E)Current Assets

Net Debtors - 14.76 15.50 16.27 17.09 17.94 18.84 19.78 20.77 21.81

Cash & Bank Balance - 34.04 71.80 104.38 137.97 173.04 208.91 252.02 296.48 342.92

Stock - 11.78 12.37 12.98 13.63 14.32 15.03 15.78 16.57 17.40

Sub-Total - 60.57 99.66 133.64 168.69 205.30 242.78 287.58 333.82 382.13

F) IDC, Pre-ops written off 5.08 4.06 3.05 2.03 1.02 - - - - -

TOTAL ASSETS 50.34 105.94 138.83 167.28 197.39 229.56 264.05 306.24 350.21 396.65

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Detailed Project Report on Pickles and Chutney Processing