Jam and Jelly

8/12/2019 Jam and Jelly

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Investment Office ANRS

Project Profile on theEstablishment of Jam Jellies andMarmalade Producing Plant


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Table of Contents

Table of Contents.....................................................................................................2

1.Executive Summary..............................................................................................3

2.ro!uct "escri#tion an! A##lication.................................................................3

3.$ar%et Stu!y& lant Ca#acity an! ro!uction ro'ram.................................3

3.1Market Study...........................................................................................................................3

3.1.1Present Demand and Supply............................................................................................3

3.1.2Projected Demand............................................................................................................53.1.3Pricing and Distribution...................................................................................................6

3.2Plant Capacity.........................................................................................................................63.3Production Program................................................................................................................

(.Ra) $aterials an! *tilities.................................................................................+

!.1"#ailability and Source o$ %a& Materials..............................................................................

!.2"nnual %e'uirement and Cost o$ %a& Materials and (tilities...............................................

,.-ocation an! Site..................................................................................................

/.Tec0nolo'y an! En'ineerin' ..............................................................................6.1Production Process..................................................................................................................)

6.2Mac*inery and +'uipment......................................................................................................)

6 3Ci#il +ngineering Cost 1,


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1. Executive Summary

*is pro$ile pro#ides basic in$ormation on t*e production o$ 5,, tons o$ Jam, Jelly and

Marmaladeper annum. *e total in#estment re'uirement o$ t*e project is estimated at about irr

1.2 million o$ &*ic* irr ./ million is $or mac*inery and e'uipment &*ile irr 1.! million is

t*e cost o$ &orking capital. ased on t*e cas* $lo& statement4 t*e calculated internal rate o$

return 0%% and simple rate o$ return S%% o$ t*e project are 1).2 7 and 16. 74 respecti#ely.

"nd t*e net present #alue 8P9 at 1/ 7 discounting rate is irr 33 t*ousand. *e plant is

e:pected to create employment opportunities $or about 3) persons.

2. Product Description and Application

;am4 ;ellies and Marmalade are bread dressings ser#ed alone or toget*er &it* margarine or $res*

butter. *ey are processed and preser#ed $ruits t*at are canned or bottled $or distribution. ;ams

are prepared by boiling $ruit pulp &it* su$$icient 'uantity o$ sugar. *e $inal product o$ jams

s*ould contain no less t*an 6/.5 percent o$ soluble solids. ;ellies are prepared by boiling and

straining t*e $ruit &it* or &it*out &ater. Mi:ing t*e strained and clear juice e:tract &it* sugar

and boiling t*e mi:ture to a stage at &*ic* it &ill set to a clear gel. Marmalade is a $ruit jelly in

*i * li $ * $ i * l i i M l d i ll i d i * *


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boarding sc*ools and *ospitals as bread dressings. *ey are also used in pastries to s&eeten

cakes implies t*ere is also a deri#ed demand $or ;am4 ;ellies and Marmalade by pastries. *e

consumption o$ bread as a break$ast meal is on t*e rise and t*e number o$ pastries is also

increasing at an increasing rate. 0n particular4 big *otels &*ic* are gro&ing at a #ery $ast rate are

t*e major users o$ ;am4 ;ellies and Marmalade.

*e supply o$ jams and jellies is composed o$ imports and domestic production. *e domestic

supply comes $rom one single plant located in t*e "&as* 9alley. *ese local products *a#e

lo&er 'ualities and lack #erities. " casual obser#ation o$ s*ops in major urban areas indicates

t*at imported jams4 jellies and marmalade dominate t*e market. 0n t*e past ten yrs4 t*e domestic

production o$ jam and marmalade *as been declining t*roug* out. *e main reason $or t*is $all

in production could be t*e $looding o$ t*e market by imports.

;ams4 jellies and marmalade are canned products &*ic* *a#e considerable &eig*t. "s a result4

transporting t*em long distances increases t*eir prices because o$ *ig* transportation costs. Since

t*e ra& materials are peris*ables4 plants &*ic* produce jams4 jellies and marmalade are located

near main $ruits gro&ing areas. =it* a population o$ nearly 2, million4 t*e market $or jams4

jellies and marmalade in t*e "8%S can support a medium scale jams4 jellies and marmalade

processing plant.


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center and ot*er ri#ers $lo&ing t*roug*out t*e %egion4 t*e "m*ara %egion imports $ruits $rom

$ar o$$ places in t*e country. *e %egion can easily produce $ruits not only $or its consumption

but $or e:port and $or con#erting t*e $ruits to jams4 jellies and marmalade.

able 3.1 s*o&s t*e domestic production and imports o$ ;am4 ;ellies and Marmalades o#er t*e

past ten years.

able 3.1

D?M+S0C P%?D(C0?8 "8D 0MP?%S ? ;"M ;+>>0+S "8D M"%M">"D+S

08 ?8S

8ear E.C Im#orts "omestic

ro!uction

Total

1)/) 8" 1,66 8"1)), 2/ 65) 6/

1))1 ) 2/6 2)6!

1))2 1,6 2/3 2))

1))3 ) 16!) 1!61))! 122 112 12)!

1))5 5 1!! 21)1))6 16 1,/ 25

1)) 263 1,/ 31

1))/ 1)1 1,/ 2))1))) 26/ 1,/ 36

2,,,@ !22 1,/ 5!,

SourceA Compiled $rom CS"Bs Manu$acturing and 0mport Data @ +stimation

"s s*o&n in able 3 1 bot* t*e import and domestic productions *a#e been $luctuating in t*e


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uture demand $or ;am4 ;ellies and Marmalade depends on c*anges in $ood *abits4 income

gro&t* and etc. =it* gro&t* in urbani"D+ ?8S

8ear At Countr

y -evel At ANRS -evel

2,,1 52 1!3

2,,2 !! 1/6

2,,3 )6 2!2

2,,! 125 31!2,,5 163! !,)

2,,6 212! 531

2,, 261 6),2,,/ 35/) /)

2,,) !666 1162,1, 6,66 151

"s it is s*o&n in able 3.2 t*e demand $or ;am4 ;ellies and Marmalade is e:pected to reac* 163!


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*e annual production capacity o$ t*e plant is sc*eduled to be 5,, tons. *e production capacity

is based on demand projections made at t*e national le#el and regional le#el4 and minimum

economic plant si


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able !.1

%"= M"+%0">S "8D (0>00+S

$aterial 9ty.

:Ton;

Av. *nit Cost

:.C

ruits orange4 apple4

grape4 and mango

!32 2.5, 1,/,

9egetablescauli$lo&er4tomatoes and lemon

3,, 2.5, 5,

Sugar 1,, /.,, /,,

?t*er additi#es salt4

citric acid and ot*eradditi#es

1,, 1, 1,,,

Packing Cans 1millionpieces

,.2, 2,,

Total Ra) $aterials 1&==

=

2&3=

*e annual utility re'uirement and cost are gi#en in able !.2.

able !.2"88("> (0>0F %+G(0%+M+8 H C?S

*tility Amount *nit cost Total Cost:


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,. -ecnolo$y and En$ineerin$

$.1 Production Proce!!

Production o$ ;am4 ;ellies and Marmalade under goes $our basic processes. irst t*e $ruit is

&as*ed in t*e brus*ing mac*ine. *en it is screened according to si


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Table /.1

$ACINER8 ? E9*I$ENT RE9*IRE$ENT

No. Item 9ty :no;

1. Con#eyor 1

2. =as*ing ank 1

3. rus*ing mac*ine 1

!. rus*ing Con#eyor 1

5. Screening Con#eyor 3

6. Scalader 1. Screener 3

/. Peeles 1

). Peeled ped con#eyor 1

1,. Segment con#eyor 1

11. -opper 1

12. Pulper 1

13. Pump 2

1!. ank 2

15. Circulation pump 2

16. Dearator 1

1. Plate type cooles 1

1/. Centri$ugal separator 1

1). lending tank 1

2,. Guick $ree


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calculated at irr 2.6, per s'uare meter &*ic* is t*e rate $or S*e&a%obit4 t*e land lease price

o$ t*e total land area 54,,, m2amounts irr 13/4,,, o$ &*ic* 5 7 is paid initially &*ile t*e

balance &ill be settled &it*in !, years period4 proportionally.

/. uman 'esource and -rainin$ 'euirement

'.1 (uman Re!ource

Manpo&er re'uirements $or t*e en#isaged plant are indicated in able .1 belo&Table +.1

$ANOBER RE9*IRE$ENT

ost No Salary$ont0

:In 5irr;

Annual Salary

Ex#enses

:In 5irr;

Plant Manager 1 3,,, 36000ec*nologist 1 25,, 30000"dministrator 1 2,,, 24000+ngineer 3 1/,, 64800Cas*ier 1 5, 9000Clerks 3 6,, 21600Mec*anics ) ),, 97200?perators 12 6,, 86400

Secretary 2 /,, 19200

uards 6 3,, 21600

ene$its 2,7 81,960

Total Annual Salary Ex#enses 3 (1&+/=


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A. Construction an! 4inance

Construction period 2 years

Source o$ $inance !,7 e'uity and 6,7 loan

a: *olidays 2 years

ank interest rate 127

Discount $or cas* $lo& 1/7

9alue o$ land ased on lease rate o$ "8%S

Spare Parts4 %epair H Maintenance 37 o$ $i:ed in#estment

5. "e#reciation

uilding 57

Mac*inery and e'uipment 1,7

?$$ice $urniture 1,7

9e*icles 2,7

Preproduction amortiocal 3, days

% M t i l i 12, d


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*.2 +nve!tment

*e total in#estment cost o$ t*e project including &orking capital is estimated at irr 1.2

million as s*o&n in table /.1 belo&. *e ?&ner s*all contribute !, 7 o$ t*e $inance in t*e $orm

o$ e'uity &*ile t*e remaining 6, 7 is to be $inanced by bank loan.

Table .1

Total Initial Investment

Items -.C 4.C Total

>and64),, 64),,

uilding and Ci#il =orks64,,,4,,, 64,,,4,,,

?$$ice +'uipment

1,,4,,, 1,,4,,,9e*icles

, ,

Plant Mac*inery H +'uipment141654,, 4145,, /4)342,,

Total Fixed Investment Cost7,272,600 7,771,500 15,044,100

Preproduction Capital

+:penditure@ 363463, 5242,5

Total Initial Investment 7,636,230 7,771,500 15,796,305

=orking Capital at ull Capacity)6)4,/2 !36436! 14!,54!!6

Total 8 605 312 8 207 864 17 201 751


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Table .2

RO"*CTION COST AT 4*-- CAACIT8

%a& Material %e'uirement Cost

1.>ocal %o& Material 24/3,4,,,

2.oreign 14,,,4,,,

-otal Production #ost at ull #apacityItems Cost

1. %a& Materials 34/3,4,,,

2. (tilities 25465,

3. =ages and Salaries !)146,

!. Spares and Maintenance !514323

Factory Costs 5,030,733

5. Depreciation 1435!4161

6. inancial costs14,3241,5

Total Prodction Cost 7,416,999

*.4 ,inancial &valuation


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0n#estment cost and income statement projection are used in estimating t*e project payback

period. *e project &ill payback $ully t*e initial in#estment less &orking capital in $our years.

I'$ (imple )ate of )eturn

*e projectBs simple rate o$ return S%% is gi#en by t*e $ormulaA

S%%J 8et Pro$it L 0nterestI otal 0n#estment ?utlay at $ull capacity utili


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%" Ta& 'e(ene

0n t*e project li$e under consideration4 t*e region &ill collect about irr /.5 million $rom

corporate ta: payment alone i.e. e:cluding income ta:4 sales ta: and 9". Suc* result create

additional $und $or t*e regional go#ernment t*at &ill be used in e:panding social and ot*er basic

ser#ices in t*e region

C" )m*ort +stittion and Forei-n .&c/an-e +a(in-

*e commencement o$ t*is project relie#es a portion o$ t*e import burden. *at is4 based on t*e

projected $igure &e learn t*at in t*e project li$e an estimated amount o$ (S Dollar ).6 million

&ill be sa#ed as a result o$ t*e proposed project. *is &ill create room $or t*e sa#ed *ard

currency to be allocated on ot*er #ital and strategic sectors

" .m*loyment and )ncome $eneration

*e proposed project is e:pected to create employment opportunity to se#eral citi


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A77EES


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Annex 19 -otal 7et :or!in$ #apital 'euirements ;in 5irrear 1 >ear 2 1 2 3 &

#apacity )tili?ation ;@< 0 0 70% 90% 100% 100%

1. -otal =nventory 0.00 0.00 445257.46 572473.87 636082.08 636082.08

'a( aterials in Stoc! -otal 0.00 0.00 142800.00 183600.00 204000.00 204000.00

'a( aterial+ocal 0.00 0.00 142800.00 183600.00 204000.00 204000.00

'a( aterialorei$n 0.00 0.00 0.00 0.00 0.00 0.00

actory Supplies in Stoc! 0.00 0.00 1993.66 2563.27 2848.08 2848.08

Spare Parts in Stoc! and aintenance 0.00 0.00 8139.60 10465.20 11628.00 11628.00

:or! in Pro$ress 0.00 0.00 49841.40 64081.80 71202.00 71202.00

inised Products 0.00 0.00 99682.80 128163.60 142404.00 142404.00

2. Accounts 'eceivable 0.00 0.00 274909.09 353454.55 392727.27 392727.27

3. #as in and 0.00 0.00 22421.89 28828.15 32031.27 32031.27

#)''E7- ASSE-S 0.00 0.00 599788.44 771156.56 856840.63 856840.63

&. #urrent +iabilities 0.00 0.00 274909.09 353454.55 392727.27 392727.27

Accounts Payable 0.00 0.00 274909.09 353454.55 392727.27 392727.27

-O-A+ 7E- :O'B=7C #AP=-A+ 'E)='E7-S 0.00 0.00 324879.35 417702.02 464113.35 464113.35

=7#'EASE =7 7E- :O'B=7C #AP=-A+ 0.00 0.00 324879.35 92822.67 46411.34 0.00

1


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Annex 19 -otal 7et :or!in$ #apital 'euirements ;in 5irr< ;continuedear 2 1 2 3 &

)-)A CAS( +/,-0 1865325.00 2329438.35 2794909.09 3318545.45 3639272.73 3600000.00

1. =nlo( unds 1865325.00 2329438.35 274909.09 78545.45 39272.73 0.00

-otal Euity 746130.00 931775.34 0.00 0.00 0.00 0.00

-otal +on$ -erm +oan 1119195.00 1397663.01 0.00 0.00 0.00 0.00

-otal Sort -erm inances 0.00 0.00 274909.09 78545.45 39272.73 0.00

2. =nlo( Operation 0.00 0.00 2520000.00 3240000.00 3600000.00 3600000.00

Sales 'evenue 0.00 0.00 2520000.00 3240000.00 3600000.00 3600000.00

=nterest on Securities 0.00 0.00 0.00 0.00 0.00 0.00

3. Oter =ncome 0.00 0.00 0.00 0.00 0.00 0.00

)-)A CAS( -#),-0 1865325.00 1865325.00 2841360.34 2900577.08 3217859.14 3096939.06

&. =ncrease =n ixed Assets 1865325.00 1865325.00 0.00 0.00 0.00 0.00

ixed =nvestments 1776500.00 1776500.00 0.00 0.00 0.00 0.00

Preproduction Expenditures 88825.00 88825.00 0.00 0.00 0.00 0.00

*. =ncrease in #urrent Assets 0.00 0.00 599788.44 171368.13 85684.06 0.00

,. Operatin$ #osts 0.00 0.00 1569764.18 2007709.66 2226682.40 2226682.40

/. #orporate -ax Paid 0.00 0.00 0.00 0.00 234330.54 249431.69

8. =nterest Paid 0.00 0.00 671807.72 302022.96 251685.80 201348.64

4. +oan 'epayments 0.00 0.00 0.00 419476.34 419476.34 419476.34

10. Dividends Paid 0.00 0.00 0.00 0.00 0.00 0.00

Surplu!eficit 0.00 464113.35 -46451.25 417968.37 421413.59 503060.94

Cumulative Ca!% alance 0.00 464113.35 417662.11 835630.48 1257044.07 1760105.00

Annex 29 #as lo( Statement ;in 5irr


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23/28


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1. =nlo( Operation 3600000.00 3600000.00 3600000.00 3600000.00 3600000.00 3600000.00

Sales 'evenue 3600000.00 3600000.00 3600000.00 3600000.00 3600000.00 3600000.00

=nterest on Securities 0.00 0.00 0.00 0.00 0.00 0.00

2. Oter =ncome 0.00 0.00 0.00 0.00 0.00 0.00

)-)A CAS( -#),-0 2491215.24 2516975.38 2532076.53 2547177.68 2547177.68 2547177.68

3. =ncrease in ixed Assets 0.00 0.00 0.00 0.00 0.00 0.00

ixed =nvestments 0.00 0.00 0.00 0.00 0.00 0.00

Preproduction Expenditures 0.00 0.00 0.00 0.00 0.00 0.00

&. =ncrease in 7et :or!in$ #apital 0.00 0.00 0.00 0.00 0.00 0.00

*. Operatin$ #osts 2226682.40 2226682.40 2226682.40 2226682.40 2226682.40 2226682.40

,. #orporate -ax Paid 264532.84 290292.98 305394.13 320495.28 320495.28 320495.28

/&) CAS( ,-0 1108784.76 1083024.62 1067923.47 1052822.32 1052822.32 1052822.32

C#MM#A)+5& /&) CAS( ,-0 1593751.08 2676775.70 3744699.17 4797521.49 5850343.81 6903166.13

/et Pre!ent 5alue at 1*6 410728.85 339988.54 284108.40 237365.18 201156.94 170471.98

Cumulative /et pre!ent 5alue -717079.19 -377090.65 -92982.25 144382.93 345539.87 516011.85

/et Pre!ent 5alue at 1*6 *1,"011.8*

+nternal Rate of Return 21.*@

Annex &9 7E- =7#OE S-A-EE7- ; in 5irrear 0.00 0.00 62101.90 0.00 0.00 0.00

)-)A +A++)+&S 1865325.00 4194763.35 4469672.44 4656377.04 4822944.69 4985475.63

*. -otal #urrent +iabilities 0.00 0.00 274909.09 353454.55 392727.27 392727.27


5an! Overdrat 0.00 0.00 0.00 0.00 0.00 0.00,. -otal +on$term Debt 1119195.00 2516858.01 2516858.01 2097381.68 1677905.34 1258429.01

+oan A 1119195.00 2516858.01 2516858.01 2097381.68 1677905.34 1258429.01

+oan 5 0.00 0.00 0.00 0.00 0.00 0.00

/. -otal Euity #apital 746130.00 1677905.34 1677905.34 1677905.34 1677905.34 1677905.34

Ordinary #apital 746130.00 1677905.34 1677905.34 1677905.34 1677905.34 1677905.34

Preerence #apital 0.00 0.00 0.00 0.00 0.00 0.00

Subsidies 0.00 0.00 0.00 0.00 0.00 0.00

8. 'eserves" 'etained Proits 5rou$tor(ard 0.00 0.00 0.00 -62101.90 527635.48 1074406.74

4. 7et Proit Ater -ax 0.00 0.00 0.00 589737.38 546771.26 582007.27

ividend! Payable 0.00 0.00 0.00 0.00 0.00 0.00

Retained Profit! 0.00 0.00 0.00 589737.38 546771.26 582007.27

Annex *9 Pro%ected 5alance Seet ;in 5irr


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inised Products in Stoc! 142404.00 142404.00 142404.00 142404.00 142404.00 142404.00

Accounts 'eceivable 392727.27 392727.27 392727.27 392727.27 392727.27 392727.27

#as in and 32031.27 32031.27 32031.27 32031.27 32031.27 32031.27

#as Surplus" inance Available 2298401.95 2861275.91 3459385.88 4512208.20 5565030.52 6617852.84

Securities 0.00 0.00 0.00 0.00 0.00 0.00

2. -otal ixed Assets" 7et o Depreciation 2028000.00 1723000.00 1418000.00 1113000.00 808000.00 503000.00 ixed =nvestment 3553000.00 3553000.00 3553000.00 3553000.00 3553000.00 3553000.00

#onstruction in Pro$ress 0.00 0.00 0.00 0.00 0.00 0.00

PreProduction Expenditure 177650.00 177650.00 177650.00 177650.00 177650.00 177650.00

+ess Accumulated Depreciation 1702650.00 2007650.00 2312650.00 2617650.00 2922650.00 3227650.00

3. Accumulated +osses 5rou$t or(ard 0.00 0.00 0.00 0.00 0.00 0.00

&. +oss in #urrent >ear 0.00 0.00 0.00 0.00 0.00 0.00

)-)A +A++)+&S 5183242.58 5441116.54 5734226.51 6482048.83 7229871.15 7977693.47

*. -otal #urrent +iabilities 392727.27 392727.27 392727.27 392727.27 392727.27 392727.27


5an! Overdrat 0.00 0.00 0.00 0.00 0.00 0.00

,. -otal +on$term Debt 838952.67 419476.34 0.00 0.00 0.00 0.00

+oan A 838952.67 419476.34 0.00 0.00 0.00 0.00 +oan 5 0.00 0.00 0.00 0.00 0.00 0.00

/. -otal Euity #apital 1677905.34 1677905.34 1677905.34 1677905.34 1677905.34 1677905.34

Ordinary #apital 1677905.34 1677905.34 1677905.34 1677905.34 1677905.34 1677905.34

Preerence #apital 0.00 0.00 0.00 0.00 0.00 0.00

Subsidies 0.00 0.00 0.00 0.00 0.00 0.00

8. 'eserves" 'etained Proits 5rou$tor(ard 1656414.01 2273657.29 2951007.59 3663593.90 4411416.22 5159238.54

4. 7et Proit Ater -ax 617243.28 677350.30 712586.31 747822.32 747822.32 747822.32

ividend! Payable 0.00 0.00 0.00 0.00 0.00 0.00

Retained Profit! 617243.28 677350.30 712586.31 747822.32 747822.32 747822.32

11

Documents

Jam and Jelly