cost for fruit jam

7/30/2019 cost for fruit jam

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FRUITS PROCESSING

All will be equivocal micro entrepreneurship at the rural level contributes much

towards overall development of rural economy. Without the development of ruraleconomy, it is unthinkable to have social development and increase in the qualityof life of rural folk. This can be achieved trough tapping the natural resources ofthe rural areas (area specific) of India and converting them to possibilities ofvalue added products most wanted by the urban lots. Now-a days, the demandfor fruit jams, jelly, squash, Pickles, Banana/ potato/ Arbi chips etc. has increasedmany fold due to dearth of time or leisure at the hand of the women folk at homeas they are also working along with their husbands. In this monogram we makean humble attempt to provide procedures for some of the fruit and vegetableprocessing like Jam, Jelly, Sauce, Squash, Chips etc. along with the economics& cost effectiveness of the processes.

Detailed Procedure for Preparation of Fruit Jam

Jam is a nutritious and palatable product prepared from fresh fruits like Papaya,Mango, Pineapple, Plume, Apple etc. Besides, it can be manufactured fromlocally available fruits. Due to rapid urbanization and change in life-style thedemand for jam or jelly is increasing day by day. The present article gives adetailed procedure for preparation of 1 kg of jam from mixed fruits like Mango,Pineapple, Banana, Apple etc.

Ingredients :

1. Grated mixed fruits

1.250 kg of fresh fruit will

yield 1 kg of grated fruit

1.00kg

2. Sugar 1 kg

3. Citric Acid 8-10 g

4. Sodium Benzoate 2.5 g

5. Colour and Essence as required

Procedure: Fruits are peeled, cut in to small pieces and grated followed byboiling in a pressure cooker for 10 minutes. The boiled materials are made into topulp and sieved through wire mesh. Pulp and sugar are mixed in a proportion of1:1 and heated till it is thick. The concentrated pulp is then cooled and sodiumbenzoate is added. In case of mixed fruit jam, addition of essence and colour

may not be required as different fruits impart different colour and flavour. But fora mono fruit jam, essence and colour may be added.

Well cooled material is packed in well sterilized bottles secured with pilfer proofcaps. Air tightness of the packaging will ensure better shelf-life of the product.


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Economics : At an yield of 1.5 kg ( Guava or Banana or Mango orPineapple) Jam

1. Cost of 1250 offruits

Rs.50.00

2. Sugar Rs.45.00

3. Cost of Processing Rs.20.00

4. cost of Packaging Rs.5.00

5. Other over heads Rs.15.00

Total Rs.135.00

Expected sale price per kg = Rs.120.00

Total return on 1.5. kg of the product = Rs.180.00

Hence, total profit would be Rs.45.00

Note: It is always advisable and profitable too that the product should bemanufactured from locally available fruits. Fresh stuff .when available in plentyshould be used for the purpose. For better marketability, quality control is highly

essential. Therefore, entrepreneurs are advised to get FPO licence from theappropriate authority.

Detailed Procedure for Preparation of Jelly

Jelly is another tasty and nutritive preparation from fresh fruits like guava,orange, mango etc. It is different from that of jam on the point that due to naturalpectin available in the fruit such as banana or guava or added pectin the productlooks as crystal clear jelly like material.

Recipe - ! For Guava Jelly

( For 1.5 kg of product)

1. Guava 1 kg

2. Water 1500ml

3. Sugar 1 kg

4. Citric acid 10 g

5. Raspberry red colour as required


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Recipe -2 for Other Fruits which do not have Pectin

1. Fruit juice - Pineapple/ Mango/Orange

1 litre

2. Sugar 1 kg

3. Citric acid( Amount of citric acid willvary depending upon the sourness ofthe fruit)

5-1 0g

4. Pectin powder 10g

5. Permitted colour asrequired

6. Permitted Essence asrequired

Procedure for Guava Jelly

Fresh guava ( 1 kg ) is peeled, cut into slices and boiled in a pressure cooker for20 minutes. The juice is filtered and mixed with sugar citric acid. This mix is againfiltered and heated for 10 minutes. At this stage Ladle Test is performed todetermine the END POINT. For this, a small amount of the content is held on the

ladle used for stirring. The end point is said to be reached when the entire lumpfalls at once without sticking to the ladle. If the juice falls drop by drop then it isconcluded that the end point has not reached and in that case, heating is to becontinued till the end point is reached. After achieving the end point the content iscooled essence and colour are added and bottled in well sterilized bottles withattractive label.

Procedure for other Jelly :Juice is extracted in the similar method as describedin the previous case. The juice is boiled for 10 minutes. In another container, 10grams of pectin powder is mixed with 200 grams of sugar and then the mixture isslowly added to the boiling solution while stirring constantly. Finally, rest of sugar

is added to the solution. The solution is then filtered. The filtered solution is"again heated slowly as described in case of guava jelly and ladle test isperformed to determine the end point.

The product is cooled and packed in well sterilized bottles with attractive label.

Detailed Procedure for Preparation of Sauce

Sauce is a very tasty and delicious recipe made out of fruits like tomato, GreenChilli, Red Chilli, Soybean etc. It can also be prepared from Mushroom and Fish.It can be prepared both at the domestic scale as well as commercial scale. The

recipe Of typical tomato sauce is described below.


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Ingredients :

1. Tomato 1 kg

2. Sugar 100 9

3. Onion 100 9

4. Ginger 50 9

5. Garlic 20 9

6. Cumin (Zeera powder) 5g

7. Red Chilli powder 5g

8. Garam Masala 5g

9. Salt 30g

10. Sodium Benzoate(Food grade)

1.6 g

11. Glacial Acetic Acid 1 teaspoon

Procedure

Fresh, fleshy, red and seedless tomato is selected for the purpose of saucemanufacturing. Local tomato will not yield good sauce and will not be accepted inthe market. Tomatoes are cut in to small pieces. Onion, ginger and garlic aregrinded well in the grinder. Cut tomato and paste of onion, ginger, and garlic areboiled in a pressure cooker with 200 ml of water for 10-15 minutes. The juice isextracted from the boiled materials with the help of wire-mesh strainer or with thehelp of nylon net. In another container, all spices powder are boiled for about 10minutes and then the juice is extracted which is then mixed with the above juice.100 gram of sugar and salt are add d to the entire mix. The entire mix is thenheated slowly while stirring constantly to achieve the End Point. The End Pointan be determined by Plate Test Method in which a small quantity of the thickened

pulp is put a plate and then the plate is slightly tilted. If no water drop cQmes outof the material then the end point is confirmed. If It is not confirmed then heatingis continued till it is achieved. On reaching the end point, sodium benzoate isadded and stirred well followed by addition of 1 teaspoonful of glacial acetic acid( or half cup of vinegar). On cooling the product is bottles of different sizes withattractive label. The bottles should be mouth full so that less air come in contactwith the material and this will increase its shelf-life.

Same procedure may be followed for all kinds of sauce excepting soybean saucewhich requires a different procedure. In commercial production appropriatepermitted colour and flavour should be added to make the product more

attractive'.

Econmics

The economics is worked out for the above recipe and on the above

mentioned quantity as follows.

Yield: 1 kg


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Detailed Procedure for Preparation of Squash

Squash is a very delicious soft drink prepared from various fruit pulps is verymuch liked by both young old. It can be easily prepared from various seasonalfruits like Mango, Pineapple, Lemon, Water Melon, Jamun, Bael etc. both at

domestic and commercial scale. The typical recipe for orange squash isdescribed below.

Ingredients :

1. Orange juice1 kg of orange will give 500ml juice. 500ml

2. Sugar 1 kg

3. Water 500ml

4. Citric Acid 10-1 5 g

5. Orange Essence 1ml

6. Orange red colour( Edible grade) a pinch

7. Potassium metabisulfite (KMS) 1.6 g

Procedure:

1 kg of sugar is dissolved in 500ml of water followed by the addition of 10-15 g of

citric acid ( the amount of citric acid will very depending upon the sourness of thejuice) and the solution is heated till it 90C. It should not be allowed to boil in anycase.

The solution is then filtered and cooled. On the other end, oranges are peeledand juice is extracted with juicer. The extracted juice is filtered and added topreviously cooled sugar solution. The entire solution is then stirred well for propermixing. At this stage, recommended quantity of essence, colour and potassiummeta bisulfite are added. The product is now ready for bottling. The productshould be bottled in pilfer proof bottles previously sterilized. The liquid should bepoured full to the brim for better preservation. The same procedure may' be

followed for other squash excepting the essence and colour.

Economics

The above recipe and quantity will yield .1300ml of squash which can be filled

in two 750 ml bottles.

Production Cost. Can be calculated as per the present market price.

DETAILED PROJECT REPORT ON FRUIT PROCESSING

1.0 INTRODUCTIONFruits are an important source of energy for human-beings but they areperishable items. Hence since many years various products are made from juiceof fruits so that they can be consumed during off season as well. Products like

jam, jelly, squash etc. are made from fruits since long. With the advent oftechnology and preservatives, shelf life of such products has gone up and theycan be preserved for many months with proper packing. The proposed location ofthis activity could be many centres in India as number of tropical fruits are grownin the country. However, this note deals with a project in Manipur as several fruits

like


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pineapples, oranges, lemons, peaches etc. are cultivated in large quantities.Hence, it is suggested to undertake fruit processing activity.

2.0 PRODUCTS

2.1 ApplicationsFruits are perishable in nature and for their preservation, they need to beprocessed to make juices, squashes, jams, nectars etc. However, this note isrestricted to making of orange and pineapple juice and squash.

2.2 Availability of know-how and CompliancesStrict compliances with the provisions under the FPO and PFA Act aremandatory. CFTRI, Mysore, has successfully developed the technical know-how.

3.0 MARKET POTENTIAL

Demand and SupplyFruits are liked by people of all age groups but they are available only duringspecific season. Due to high water or juice contents, they are perishable. Certainfruits require very careful and consequently costly transportation. Hence, manydown-the-line products like squash, fruit-juice concentrates, jam, nectars etc. aremade from fruits with preservative which increases their shelf-life substantially.Market for such products has witnessed a quantum jump during last few yearsand with growing urbanisation, increase in disposable incomes and changing lifestyles, demand for them is steadily going up.

Marketing StrategyThere are some established brands available in the market but they are costlyand hence people would prefer low cost, good quality products. It is possible tointroduce competitive pricing for a small scale unit due to its inherent features.Proper care has to be taken in creating and maintaining adequate network.

4.0 MANUFACTURING PROCESSThe manufacturing process for making fruit juice and squash is standardised andnot very complicated or time consuming. CFTRI, Mysore, has successfullydeveloped this technology. In the first process, fully ripe and matured fruits arewashed, cleaned, graded and then peeled. Thereafter juice is extracted fromfruits and then it is filtered to remove seeds, fibres etc. This juice is thenprocessed, sterilised and bottled after adding preservatives. In case of squash,syrup of sugar along with preservatives are added to juice and this mixture isstirred till uniform solution is formed and then it is bottled. As regards oranges,recovery of juice is substantial and weight and process loss is 10%. But in caseof pineapple, wastages are around 50%. Process loss of 5-6% is compensatedby addition of sugar syrup. The process flow chart is as under:

Washing, grading and peeling of fruits

Juice extraction and filtration

Sterilization

Packing

5.0 CAPITAL INPUTS

5.1 Land and BuildingTotal requirement of built-up area shall be around 150 sq.mtrs. and hence landmeasuring about 300 sq.mtrs. will be adequate. The built-up area is adequate to

have production, storage and packing facilities. Cost of land is estimated to be


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Rs. 90,000/- whereas that of civil work Rs.3,75,000/-.FPO provisions aboutlayout of factory building must be adhered to.

5.2 Plant and MachineryIn view of size of the market and to ensure economic viability of the project, rated

production capacity of 150 tonnes per year with 2 shift working and 300 workingdays is advisable. To install this capacity following machines shall be required:

Sl Items Quantity Price in INR

1 Fruit Washing Tanks 2 10,000

2 Juice Extractors 2 85,000

3 Steam Jacketed Kettles- 60 Ltrs.Capacity

2 40,000

4 Stirrer 1 15,000

5 Baby Boiler- 100 kgs/Hr 1 60,000

6 Bottle Washing and FillingMachine

1 75,000

7 Testing Equipments likeRefracto Meter,Salinometer, Pipette, Buretteetc. --

1 piece in each othe item

30,000

Total 3,15,000

5.3 Miscellaneous Assets

Many other assets like stainless steel utensils, plastic tubs, exhaust fans, storageracks, furniture & fixtures, etc. shall be needed. A provision of Rs.50,000/- ismade for the same.

5.4 UtilitiesPower requirement will be 40 HP whereas per day water requirement would be2000 litres for washing of fruits and potable and sanitation purposes. Hard cokeof around 25 tonnes will be required annually for boiler.

5.5 Raw MaterialThe all-important raw material will be fresh, ripe and matured oranges and

pineapples. North-East states including Manipur are famous for horticultureproducts. The highest fruit crop of Manipur is pineapple with production of morethan 70,000 tonnes whereas that of oranges it is about 4500 tonnes. Thus,availability of few hundred tons will not pose any problems. Other items likesugar, salt, additives and preservatives etc. shall be available locally. Packingmaterials like food grade plastic or glass bottles, labels, corrugated boxes, BOPPtape etc. shall be required for which prior arrangement is advisable.

6.0 MANPOWER REQUIREMENTS

Sl Particulars Nos Monthly Salary

(Rs.)

Total

MonthlySalary (Rs.)

1 Skilled Workers 4 1,800 7,200

2 Semi-skilled Workers 2 1,500 3,000

3 Helpers 4 1,000 4,000

4 Salesman 1 2,000 2,000

Total 16,200


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7.0 TENTATIVE IMPLEMENTATION SCHEDULE

Sl Activity Period (in months)

Application and sanction of loan 2

Site selection and commencement of civil work 1

Completion of civil work and placement oforders for machinery

4

Erection, installation and trial runs 1

8.0 DETAILS OF THE PROPOSED PROJECT

8.1 Land and Building

Items Squaremts

CostINR

Land 300 90,000Building 150 3,75,000

Total 4,65,000

8.2 MachineryProduction capacity of 150 tons can be installed with investment under this headto the extent of Rs.3.15 lacs as discussed earlier.

8.3 Miscellaneous Assets

A provision of Rs. 50,000/- is adequate to have support assets as explained

earlier.

8.4 Preliminary & Pre-operative ExpensesThere are certain expenses which are incurred prior to the commencement ofproduction such as registration, establishment and other administrativeexpenses, interest during implementation and so on. A provision of Rs.50,000/- ismade towards them.

8.5 Working Capital RequirementAgainst installed production capacity of 150 tonnes per year, actual capacityutilisation in the first year is expected to be 65%. At this level of activity, the

working capital needs will be as under:(Rs. in lacs)

Sl. Particulars Period Margin Total Bank Promoters

Stock ofPackingMaterials

1 Month 30% 0.40 0.28 0.12

Stock ofFinishedGoods

Month

25% 0.80 0.60 0.20

Receivables

Month

25% 1.50 1.15 0.35

WorkingExpenses

1 Month 100% 0.45 -- 0.45

Total 3.15 2.03 1.12


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8.6 Cost of the Project and Means of FinancingItem Amount

Sl Items (Rs. in lacs)

1 Land and Building 4.652 Plant and Machinery 3.15

3 Miscellaneous Assets 0.50

4 P&P Expenses 0.50

5 Contingencies @ 10% on Land &Building and Plant & Machinery

0.80

6 Working Capital Margin 1.12Total 10.72

Means of Finance

1 Promoters' Contribution 30% 3.22

2 Term Loan from Bank/F 7.50

Total 10.721 Debt Equity Ratio 2.33 : 1

Financial assistance in the form of grant is available from the Ministry of FoodProcessing Industries, Govt. of India, towards expenditure on technical civilworks and plant and machinery for eligible projects subject to certain terms andconditions.

9.0 PROFITABILITY CALCULATIONS

9.1 Production Capacity and Build-upThe rated production capacity of the plant will be 150 tonnes per year. But actualutilization is restricted to 65% in the first year and 75% thereafter.

9.2 Sales Revenue at 100%

Product Qty. SellingPrice

Sales

OrangeJuice

35 32,000 11.20

Orange

Squash

40 40,000 16.00

PineappleJuice

35 32,000 11.20

PineappleSquash

40 40,000 16.00

Total 54.40

9.3 Raw Materials Required at 100 (Rs. in lacs)

.

Product Qty Price/Ton ValueOranges 80 13,000 10.40

Pineapples 150 8,000 12.00

Sugar - - 2.04

Additives,Preservatives,Flavours, etc. -- --

1.20

Packing Materials @Rs.5000/Ton

7.50

Total 33.14


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9.4 Utilities

Utilities like power, water and hard coke would cost around Rs.1,00,000/- at100% activity level.

9.5 Selling ExpensesThere will be competition from some established national brands and localbrands as well. Hence, a provision @ 15% of sales income has been madetowards selling commission, free sampling and publicity in local media.

9.6 InterestInterest on working capital assistance from bank is calculated @ 14% perannum. Interest on term loan of Rs. 7.50 lacs is calculated @ 12% per annumconsidering repayment of loan in 5 years including a moratorium period of 1 year.

9.7 Depreciation

It is computed on WDV basis @ 10% on building and 20% on machinery andmiscellaneous assets.

10.0 PROJECTED PROFITABILITY(Rs. in lacs)

No. Particulars 1st Year 2nd Year

A Installed Capacity --- 150 Tonnes

Capacity Utilisation 65% 75%

Sales Realisation 35.36 40.80

B Cost of Production

Raw Materials 16.66 19.23

Packing Material 4.87 5.63

Utilities 0.65 0.75

Salaries 1.94 2.15

Stores & Spares 0.24 0.30

Repairs & Maintenance 0.36 0.42

Selling and Distribution @15%

5.30 6.12

Administrative Expenses 0.42 0.50

Total 30.44 35.10

C Profit before Interest &Depreciation

4.92 5.70

Interest on Term Loan 0.98 0.63

Interest on WorkingCapital

0.28 0.32

Depreciation 1.11 0.92

Net Profit 2.55 3.83

Income-tax @ 20% 0.51 0.80

Profit after Tax 2.04 3.03

Cash Accruals 3.15 3.95Repayment of Term Loan -- 1.75


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11.0 BREAK-EVEN ANALYSIS (Rs. in lacs)

[A] Sales 35.36

[B] Variable Costs

Raw Materials &Packing Materials

21.53

Utilities (65%) 0.42

Salaries (65%) 1.26

Stores & Spares 0.24

Selling Expenses(75%)

3.98

Admn Expenses(50%)

0.21

Interest on WorkingCapital

0.28

Total B 27.92 27.92

[C] Contribution [A]- [B]

7.44

[D] Fixed Cost 4.89

[E] Break-EvenPoint [D C]

65%

12.0 [A] LEVERAGES

Financial Leverage = EBIT/EBT = 3.81 2.55 = 1.49Operating Leverage = Contribution/EBT = 7.44 2.55 = 2.92Degree of Total Leverage = FL/OL = 1.49 2.92 = 0.51

[B] Debt Service Coverage Ratio (DSCR) (Rs. in lacs)

Particulars 1st Yr 2nd Yr 3rd Yr 4thYr 5th Yr

CashAccruals

3.15 3.95 4.23 4.51 4.83

Interest onTL

0.98 0.63 0.39 0.24 0.14

Total [A] 4.13 4.58 4.62 4.75 4.97

Interest onTL

0.98 0.63 0.39 0.24 0.14

Repaymentof TL -- 1.75 1.75 1.75 1.75

Total [B] 0.98 2.38 2.14 1.99 1.89

DSCR [A] [B]

4.21 1.92 2.16 2.39 2.63

Average DSCR ------------------------- 2.66 --------------------------------


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[C] Internal Rate of Return (IRR)Cost of the project is Rs. 10.72 lacs. (Rs. in lacs)

Year Cash 16% 18% 20% 24%

Accruals

1 3.15 2.72 2.67 2.62 2.54

2 3.05 2.27 2.19 2.12 1.983 4.23 2.71 2.58 2.45 2.22

4 4.51 2.49 2.33 2.17 1.91

5 4.83 2.30 2.11 1.94 1.6519.77 12.49 11.88 11.30 10.30

The IRR is around 22%.

Some of the equipment and packing machinery suppliers are

1. Auric Techno Services Pvt. Ltd. C-101, Shreenath Hermitage, BanerRoad, Pune- 411008. Tel No. 25898072/25899113 Fax No. 25899113

2. PRS Technologies Pvt. Ltd. D-26, NDSE Part II New Delhi-110049. TelNo. 26252176/77, Fax : 2540789

3. SS Engg. B-25, Khanpur Ext. New Delhi-110062. Tel No. 26081475

4. 4. Divecha Glass Industries, 249, Balrajeshwar Road, LBS Marg, Mulund(W), Mumbai-400080

5. 5. DK Barry and Compnay Pvt. Ltd. 11/35, West Punjab Baug, New Delhi-110026. Tel No. 25160363

Documents

cost for fruit jam