MODEL DETAILED PROJECT REPORT

READY TO SERVE FRUIT JUICE

Disclaimer: This is just a model DPR prepared based on assumptions for reference purpose

only. The project cost and financial projections may vary project to project as per technology

selection, nature of civil work, price of raw materials etc.

PROJECT AT A GLANCE ..............................................................................................3

INTRODUCTION .............................................................................................................4

1. BACKGROUND ..............................................................................................5

2. PROJECT BACKGROUND ...........................................................................7

3. ORGANIZATIONAL AND PROMOTERS DETAILS .....................................7

4. PROJECT DESCRIPTION & FLOW SHEET: ...............................................9

5. PROCUREMENT STRATEGY OF RAW MATERIAL & OTHER INPUTS . 11

6. MARKETING STRATEGY ........................................................................... 11

7. LIST OF STATUTORY CLEARANCES REQUIRED .................................. 12

8. LAND DETAILS ............................................................................................ 12

9. PROJECT COST .......................................................................................... 13

11. TECHNO-COMMERCIAL VIABILITY OF THE PROJECT ......................... 16

12. FINANCIAL ANALYSIS ............................................................................... 16

13. PROJECT IMPACT ...................................................................................... 27

Project at a Glance

1. Name of the Unit :

2. Constitution :

3. Date of Incorporation :

4. CIN :

5. PAN :

6. GST

7. Registered Office :

8. Factory Address :

9. Name of Directors :

10. Type of Unit :

11. Nature of Project : RTS Beverages

12. Installed Capacity at 100%

Capacity Utilisation

: 500 Ltr/hr.

13. Cost of the Project : 240 Lakh

14. Promoter’s Contribution :

15. Proposed Term Loan :

16. Requirement of Cash Credit

Limit

:

17. Proposed Employment : Direct Employment - 14 nos.

18. Power Load : 200 KvA

Introduction Bihar is seventh largest economy in India in terms of food production and produces different kinds of

cereals, pulses, oilseeds and cash crops.As a traditional foodgrain economy, the major food crops grown

in Bihar are rice, wheat, maize and pulses. The State has has recorded an increase in production of

cereals from 143.21 lakh tonnes in 2017-18 to 158.58 lakh tonnes in 2018-19 which is an increase of 4.21

percent. This is due to high productivity, which grew from 2328 kg per hectare in 2014-15 to 2636 kg per

hectare in 2018-19 with a registered growth of 4.31 percent. The production of wheat increased from a

modest quantum of 35.70 lakh tonnes in 2014-15 to about 64.66 lakh tonnes in 2018-19. For maize, the

production increased from24.79 lakh tonnes to 31.94 lakh tonnes during the same period. Though the

area under maize hassteadily increased in Bihar, there are considerable fluctuations in yield leading to

instability inproduction.

Horticulture has emerged as one of the most important agricultural enterprises in Bihar in the last two

decades, as it offers a wide range of opportunities for farmers to diversify their cropping pattern to include

fruits, vegetables, flowers, spices, plantation crops, medicinal and aromatic plants. The increasing

diversification provides opportunities for absorption of labour and earning remunerative returns to the

farmers. The horticultural products form an important component of food and nutritional security in Bihar.

To meet the growing demand for affordable and high-quality fruits in local, national, and international

markets, this sector is experiencing substantial competition. Since horticultural crops are highly

perishable and seasonal in nature, they require adequate post-harvest infrastructure. The State

Government is promoting horticulture sector in a big way in Bihar to help the farmers.

The total production of fruits in Bihar increased from 41.05 lakh tonnes in 2016-17to 42.29 lakh tonnes in

2018-19, registering an annual growth rate of 4.9 percent. Except pineapple, all other fruits registered

growth in production in the last three years. The state is performing well in production of litchi, amounting

to 3.07 lakh tonnes cultivated in an area of 0.36 lakh hectares in2018-19. This was possible due to

increase in both its acreage and productivity. Substantial increase in production was observed for banana

(2.1 percent), papaya (4.1 percent), mango (3.5percent), guava (8.2 percent), watermelon (10.7 percent),

and muskmelon (11.8 percent) during2016-17 to 2018-19.

Realizing the potential that exists in agricultural and horticultural processing in the state, Govt. of Bihar

has launched a “Bihar Agri Investment Promotion Policy 2020”in the state. This Scheme provides support

for setting up food processing units in the state. This is aimed at addressing various constraints like

infrastructure, technology, skills and marketing faced by the food processing sector in the state and to

help them compete with industry standards at national and international level.

There has been an appreciable increase in the export of processed foods which includes fruit juices. With

the fast growth of the urban areas and the growing living standards of the Indian people, there is a good

potential to develop this industry in small-scale sector. Considering the potential market opportunity of

such units, this detail project report has been developed. The main objective of such initiative is to

productively utilize the abundantly available resources of the local area and to enable uninterrupted

supply of the products to market throughout the year1.

1 Bihar Economic Survey 2019-20

Predicted growth of RTSFB

2019 2024

$ 173 B

1. Background

Definition:

Packaged fruit juice is obtained mechanically by squeezing or deliquescing different types of fruits

or prepared through pulp extract of fruits. Every fruit juice has its own flavor, taste and health

benefits e.g. watermelon hydrates body, lemon juice provides necessary Vitamin C to increase

immunity and avocado juice provides natural energy to the body. Different types of packaged fruit

juices are of mango, orange, lemon, pineapple, litchi, guava, apple, etc.

Global Scenario

Unlike last decade the consumption of carbonated soft drink, flavoured drinks, colas etc has

witnessed slack in consumption mainly due to high sugar

content, use of artificial ingredients for colouring, flavors

etc which may have ill effects in the body. It is evident that

there has been a gradual shift towards consumption of

natural fruit juices/drinks. The global market for fruit has

already reached a volume of 45.4 Billion litres by the year

2018, with a handsome CAGR of approx. 2% between

2011-2018. It is predicted that this market may further

climbed a staggering figure of50.6 billion liters by 2024. It

is going to be one of the profitable sectors in the world

with projection of a market of Global $90 billion by 2025 at

a spectacular CAGR of 6.2% from 2017 to 20252.

The driving forces of the growth of RTS juice worldwide are:

Indian Scenario

India cultivates multiple variety of high-quality fruits like mango, orange, pineapple, litchi, guava,

lemon etc round the year and hot to moderate weather conditions in India propels high demand of

fruit juice in the country. The sector is growing year on year and the present revenue from the

sector amounts to US$2,106m in 2020, and the market is likely to prosper at 8.3% (CAGR 2020-

2https://agriexchange.apeda.gov.in/Weekly_eReport/Fruit_Juices_Report.pdf

Increase in demand of healthy drinks

Rise in demand for high scale of volume in beverage industry

Decrease in demand of colas, carbonated drinks due to high sugar content

Preservative free and sugar-free fruit juice

Growing popularity of cold pressed juice

2025).The market's largest segment is other juice, Juice Mixtures & Smoothies with a market

volume of US$1,216m in 20203.

Bihar

Bihar is predominately agrarian State with almost 75 percent of people depend on agriculture for

their livelihood. Horticulture has emerged as one of the most important activities to boost

agricultural enterprises in Bihar in the last two decades, as it offers a wide range of opportunities

for farmers to diversify their cropping pattern to include fruits, vegetables, flowers, spices,

plantation crops, medicinal and aromatic plants. The increasing diversification provides

opportunities for absorption of labour and earning remunerative returns to the farmers. The

horticultural products could be an important component of food towards nutritional security in

Bihar. To meet the growing demand for affordable and high-quality fruits in local, national, and

international markets, this sector is experiencing substantial competition. Since horticultural crops

are highly perishable and seasonal in nature, they require adequate post-harvest infrastructure.

The State Government is promoting horticulture sector in a big way in Bihar to help the farmers.

The total production of fruits in Bihar increased from 41.05 lakh tonnes in 2016-17 to 42.29 lakh

tonnes in 2018-19, registering an annual growth rate of 4.9 percent. Except pineapple, all other

fruits registered growth in production in the last three years. The state is performing well in

production of litchi, amounting to 3.07 lakh tonnes cultivated in an area of 0.36 lakh hectares in

2018-19. This was possible due to increase in both its acreage and productivity. Substantial

increases in production was observed for banana (2.1 percent), papaya (4.1 percent), mango (3.5

percent), guava (8.2 percent), watermelon (10.7 percent), and muskmelon (11.8 percent) during

2016-17 to 2018-19.

Source: website of MoFPI

3https://www.statista.com/outlook/20030000/119/juices/india

2. Project Background

The unit has proposed to set up a 500 Ltr/hr. RTS Juice Processing unit at XYZ location. The main

product is RTS Fruit Juice.

The main objective of the fruit juice processing is to preserve the perishable fruits in its original form that

may be stored and supplied to different markets locally or nationally throughout the year. Processing also

helps in changing fruits in forms which are easy to use and convenient to prepare any other products.

The fruits that will be used for processing not only help in reducing wastage during handling however it

also helps in adding nutrition and consumable properties of the fruits. There has been tremendous

increase in consumption of packaged fruit drinks due to changing lifestyles and consumption habits of

people. The product is even gaining popularity in rural and smaller towns due to its convenience and easy

to consume as well as the lower price tag with handy packaging. After processing, the products would be

supplied to the market through distributors/ wholesalers/retailers.

Current status of the unit:

a. Items to be manufactured: RTS Beverage (Juice)

b. Capacity of the plant: 500 Ltr/hr.

c. Source of power generation/electricity: Electricity form BSPHCL/SBPDCL, DG Set

d. Source of water supply: Own Borewell

e. Connectivity to road/railways: NH/SH details along with distance

f. Mode of transport: Pickup/Truck/Others

g. Market: Details of local market/other market

h. Employment Generation:14 nos.

i. Marketing:

j. Waste disposal: ETP/STP

3. Organizational and Promoters Details

Organizational details

The M/s XYZ is a proprietorship/partnership/private company is associated with fruit trading for about 10

years. The unit was incorporated on ……………… as private limited company under Company’s Act. The

authorized capital of the company is Rs. ….. lakh and the paid-up capital is Rs. ….. as on ………….The

details of the unit as per MCA website (only for private/public ltd. companies) are given below:

Company Master Data

CIN

Company / LLP Name

Company Master Data

ROC Code

Registration Number

Company Category

Company Sub-Category

Class of Company

Authorized Capital(Rs)

Paid up Capital(Rs)

Number of Members(Applicable in case of company without Share Capital)

Date of Incorporation

Registered Address

Email Id

Whether Listed or not

Date of last AGM

Date of Balance Sheet

Company Status(for e-filing)

Directors/Signatory Details

DIN/PAN Name Begin date End date

Promoters’ Background

The unit is a proprietorship/partnership/private limited company/ firm and the

proprietor/partners/promoters of the firm has experience in trading of fruits and vegetables and is

associated processors. He/They has/have identified fruit juice industry as a profitable business seeing its

ever-increasing demand in the local market as well market in the neighboring districts and States. Brief

profile of the proprietor/partners/promoters is given below:

Brief profile of promoters is given below:

a) Mr. ABC

b) Mrs. XYZ

c) Mr. DEF

Networth: The details of the networth of the unit is given below:

Particulars Rs. In lakh

Movable assets A

B

C

Subtotal (A)

Immovable assets A

B

C

Subtotal (B)

Total

The total net-worth is more than the proposed grant of the unit.

4. Project Description & Flow Sheet:

The unit has proposed to set up a 500 Ltr/hr. RTS Juice Processing unit at XYZ location. The main

product is RTS Fruit based beverages.

The ready-to-serve beverages as per FSSA specifications should contain at least 10 percent fruit content

and not less than 10 percent TSS besides 0.3% acid maximum as citric acid. The levels of permitted

preservatives include 70 ppm (maximum) for sulphur dioxide and 120 ppm (maximum) for benzoic acid.

The total plate count and yeast and mold counts should not exceed, to 50.0 cfu/ml and 2.0 cfu/ml,

respectively. The Coliform counts should be nil in 100 ml beverage samples.

Since these beverages are consumed as such without dilution, hence are termed as Ready-to-serve

beverage. Most packaged fruit beverages belong to this category. Wide range of fruits including mango,

citrus fruits, berries, litchi, guava, pineapple, grapes etc. are preferred for RTS beverages. Required

amount of sugar, acid, stabilizer, colouring and flavouring ingredients are added in juice or pulp along with

water and the mixture is blending properly, filtered if desired. The RTS mix is pasteurized (80-90 degree

C) in bottle (20-30 min), continuous juice pasteurizer (few seconds to one minute) and cooled

immediately. Nowadays, UHT processing of RTS beverages is quite popular because of longer shelf-life

and less loss of nutrients during processing.

The amount of fruit juice or pulp may vary according to fruit and cost effectiveness. The presence of

oxygen in headspace often leads to oxidation resulting in off-flavour and loss of nutritive value, hence

antioxidants such as ascorbic acid is often added in RTS beverages. Besides it, colour and flavour

ingredients which are stable to heat, and oxygen are preferred.

Manufacturing Process

5. Procurement strategy of raw material & other inputs

Bihar produces various kinds of fruits and vegetables in large quantity. Among fruits, the state is the

largest producer of litchi, third largest of pineapple and fourth largest of mango in India. The major fruit

producing districts in the state overlap with major vegetable producing ones. While Muzaffarpur and

Vaishali districts lead in litchi and banana, the districts of Darbhanga, Vaishali, East Champaran and

West Champaran are ahead in mango production. Similarly, Rohtas and Bhojpur lead in guava

production. Normally prices of fruits and vegetables at the village level are much lower compared to that

in the main wholesale market. This situation leads to farmers getting much less return on their produce.

Mango is an important fruit besides mango, other important crops include litchi, guava and banana, which

are grown in abundance in the district.

Proposed district produces Guava, Mango, Litchi, Banana, Lemon and many other fruits like Karaunda,

Lotus Stem etc. District also produces vegetables in huge quantity, specially, Kole crops, Tomato, Carrot,

Chilli, which will be required for the unit in manufacturing of fruit-based products. During the season Fruit

required by the unit will be procured directly from the farmers. Many small adhats (auction centers)

sprang in the villages that collect the vegetables from the farmers and is further sold/ dispatched to other

major market/ customers in the state and other state. In addition to this unit would also propose to sign

contracts with the local farmers to ensure timely supply of the fruits.

Backward Linkages:

The promoter has well established backward linkages for its proposed units and it is expected that the

raw material can be procured from the local area. Raw materials are mainly Mango/Pineapple/Litchi,

sugar, preservatives etc.

Forward Linkages

Food product such as Mango, pineapple, litchi juices has a great demand in the Town as well as in the

rural area at present there are only few units who are manufacturing RTS beverages and other unites are

very small capacity and unable to fulfill the Market demand.

6. Marketing strategy

The rising number of health-conscious consumers is giving a boost to RTS juices; it has been observed

that consumers are shifting to RTS as they consider the same as a healthier breakfast/snack option.

Mango drinks are popularly used in most urban households.

Today markets are flooded with a large variety of juices e.g., mango, apple, guava, litchi, grapes,

pineapple etc. The main reason for increased consumption is rising level of health consciousness among

consumers and parents. It is believed that these drinks provide superior nutrition because of their fortified

status. Factors like preferred choice of children, easy availability, convenience, naturalness and

marketing strategies have given RTS drink industry a booming growth.

With changing lifestyles and increase in disposable incomes, the demand for easy-to- prepare drink is

also increasing. Besides consumption in the households, it is served in hotels, restaurants, clubs, airlines

and railways etc.

Quality should be emphasized at each step right from the beginning to the marketing of the Product. Over

the years, an image of high-quality products should be cultivated.

The effectiveness of distribution coverage and practice is of paramount importance in achieving the

desired RTS juice sales. Understanding of the distribution channels is crucial for the manufacturer to plan

and implement an effective distribution strategy. Distribution network should be given extra emphasis.

Market share could be gained by enhancing retailer, and distributor margins. Normally distribution and

retailer margins in RTS juice business are from 15 to 20%.

Promoters would appoint distributors in targeted towns of Bihar and surrounding states like West Bengal,

Jharkhand, Uttar Pradesh. Contacts with retailers of similar kinds will be made and products would be

sold in the market with help of them. The product made in this unit will be in the line with top range of

products with better quality at the same time cost effective. Company would be sharing more profits with

the distributors and retailers.

Company will also explore possibility of marketing their produce to retails shops like Big Bazar, Reliance

Trends, Malls etc. It will also try to partnership with local and other hotels and restaurants with good offers

to attract demand of its product. It is assumed that due high quality, cost effectiveness and aesthetic

packaging, sale of products may not face much problems.

7. List of Statutory Clearances Required

A tentative list of clearances that unit would require to take:

S. No. Approval and clearances

required Department/ Offices to be

consented Status

1 State Investment Promotion Board, Stage – I clearance

Department of Industries

2 Consent to Establish Bihar State Pollution Control

Board

3 GST registration Commercial Taxes

4 Change in land use Land Revenue Dept

5 Electricity Connection North/South Bihar Power

Distribution Company Ltd.

6 Registration under Factories Act Office of Inspector of Factories

8. Land Details

Land Details

In order to set up a modern biscuit manufacturing unit of the proposed capacity, a land size of approx. 18

to 20 Decimal would be ideal however this may vary with increase in capacity.

The land proposed for the unit Details of the proposed land is given below:

Sale deed dated 18.10.2016 in the name of M/s XYZ with sale value Rs. 0.00/-

Khata no. Plot no. Area Boundary

Total 19 decimals

The total land area is …… decimal and is in the name of the of the proprietor/firm/company. The

proposed land of the unit is an industrial land as per CLU dated …… Character of the land. The cost of

the land is Rs. ……. lakh/ the proposed land is a leased land for a period of …………. years.

(In case of leased land the minimum lease duration should be 30 years)

9. Project Cost

The proposed project cost of the unit is Rs. 240.00 lakh, the details of the project cost is given

below:

Project Cost

S. No Particulars Amount

(Rs. Lakh) % of total

project cost

1 Land - 0.00%

2 Land and Site Development Cost 10.00 4.17%

3 Plant Area & Building Development Cost 51.00 21.25%

4 Plant and Machinery 134.00 55.83%

5 MFA (Including DG set, Transformer, Furniture etc.)

25.00 10.42%

6 Preliminary and Pre-operative Expenses 5.00 2.08%

7 Contingency 5.00 2.08%

8 Margin Money for Working Capital 10.00 4.17% Total 240.00 100.00%

a. Investment in land and land development

▪ Investment in land: Proposed land of the project is taken on long term lease and

hence no cost has been considered towards cost of the land in the project.

▪ Investment in land development work: The total investment in land development work

is Rs. 10.00 lakh which is 4.17% of the total project cost. However as per scheme

guidelines Rs. 6.00 lakh @2.5% of the project costis lowest and hence is

considered for grant-in-aid calculation.

b. Investment in civil work

The Master Plan has been prepared in accordance with the requirement of the project. Based on

the requirement of machines and equipment, the facilities have been planned and user amenities

integrated. The planning of the building structures and infrastructure facilities has been done

keeping in view the entire functional requirements and location of the various units in the site has

been fixed to facilitate smooth process flow. Proposed master plan meets all plot development

and planning norms are as per Standards of the State Govt. Built-up area and open space has

been considered as per local bye-laws applicable for industrial buildings. (Factory building either be

RCC or PEB structure so the layout plan and cost may vary project to project same will be captured in an

applicant’s DPR).

Promoters propose to construct factory shed & building, office, water storage tank, guard room

etc. The proposed estimate of shed & building is Rs. 51.00 lakh, and the details are given below:

Proposed Civil Work details:

Proposed civil work

S. No Component Area

(sq. ft.) Amount

(Rs. Lakh)

1 Factory shed 4000 26.00

2 Office 500 8.00

3 Water storage tank 600 7.00

4 Guard Room 100 2.00

5 Staff Quarter 500 8.00

Total 51.00

Plant & machinery

The company proposes to install latest and standard machines from the reputed

Indian/International manufacturers. The total proposed investment in plant & machinery is Rs.

134.00 lakh including Effluent Treatment Plant. Details of the proposed machinery is given below:

Plant & machinery*

S. No. Name ofthe machinery Amount

(Rs. Lakh)

1 RTS juice processing plant 30.00

2 Pet Blowing machine, compressor and mould 20.00

3 Filling machine 18.50

4 Batch coding machine 2.00

5 Group shrink packing 5.00

6 Electric panel, electric work

22.00 7 Boiler, steam piping to plant, chimney

8 Cooling tower, piping

9 Online chiller, piping

10 RO, lab and piping 26.50

11 ETP 10.00

Total 134.00 *The make and specification of P&M may vary project to project based on the quotations from different suppliers.

As per scheme guidelines Rs. 134.00 lakh has been considered towards grant-in-aid calculation.

Misc. Fixed Assets

In order to ensure smooth operation of the unit, it would also require certain miscellaneous fixed

assets apart from above listed plant &machinery. The miscellaneous fixed assets would include

electrical installation, power back-up, furniture, office equipment &vehicle for transportation, etc.

Cost of these assets is estimated at Rs. 25.00 lakh.

Preliminary & pre-operative expenses

Pre-operative expenses have been considered considering the tentative expenditure to be

incurred related to loan appraisal fees, consultancy fees, administrative exp and interest on term

loan during construction period. All these expenses have been estimated at Rs. 5.00lakh.

Contingency

Amount proposed to be invested towards contingency is Rs. 5.00 lakh

Margin money for the working capital

We have worked out the margin money for working capital requirement as per project need and

its smooth operation, the proposed amount of margin money is Rs. 10.00 lakh @25% of the

working capital requirement. Detail is given in the financial section of the report.

Electricity

The unit will require power load of ……… KVA from North/South Bihar Power Distribution

Company Ltd. for this project. Estimate of power requirement is enclosed with the financial part of

this report.

Water

The estimated water consumption is approx. 20 KL per day and two deep bore wells would be

required to meet water requirement of the unit.

Manpower

An estimate of manpower requirement has been prepared based on the equipment and

operations involved. An estimate of manpower cost is given below:

S. No Particulars No of

Employee Monthly Salary

Total Salary Per Month

(Rs.)

Total Salary Per Annum

(Rs.)

A Technical Staff

1 Manager 1 15,000 15,000 180,000

2 Storekeeper 2 10,000 20,000 240,000

3 Accountant 1 10,000 10,000 120,000

4 Operator, fitter, electrician 4 12,000 48,000 576,000

5 Helper/ Skilled worker 4 8,000 32,000 384,000

B Unskilled Staff

6 Peon/Security Guard 2 8,000 16,000 192,000

- - -

Total 14 1,692,000

Add PF, ESI & Other benefits etc @20% 338,400

Total Direct Wages 2,030,400

Total Direct Wages (Rs. In lakh) 1.41 20.30

10. Means of Finance

Sl No Particulars Total Total

1 Capital 60.00 25%

2 Long Term Debt 180.00 75%

240.00 100%

11. Techno-commercial viability of the project

a. Technical viability: Project has proposed to install modern and standard machineries from reputed

suppliers for production process. It has proposed proper marketing strategy for the sale of the

goods in local as well adjoining districts. The project has already been approved for available

term loan from bank and promoters of the unit are aware about the business and will also deploy

trained and technical staff for running the unit.

b. Commercial viability: The financial projections of the unit are positive with standard financial

ratios, the list of important financial ratios are given below:

Gross Profit Ratio

24.71 24.09 23.82 23.60 23.32

Net Profit Ratio 7.54 8.75 9.70 10.45 11.01

Current Ratio 2.14 3.03 3.90 4.79 5.69

DSCR 2.85 2.98 3.08 3.18 3.27

BEP 0.59 0.49 0.41 0.35 0.30

IRR 15%

12. Financial Analysis

Assumption

Capacity assessment

Production per day from plant 500 ltr/hour in two shifts i.e. 16 hours per day

No. of working days 250

Total annual production at 100% capacity

2000 MT

Total annual install capacity 2000 MT

Capacity assumptions

Product mix 100% 2000 MT

RTS Juice 80% 1800 MT

Loss 20% 200 MT

Total annual install capacity - 2000 MT

Working Capital Requirements

Sl No

Particular Stocking Period in Month

Ist Yr 2nd Yr 3rd Yr 4th Yr 5th Yr

1 Raw Materials 1.00 25.95 28.11 30.28 32.44 34.60

2 Consumable Stores & Packing Material 1.25 0.00 0.00 0.01 0.01 0.01

3 Finished Goods 0.50 18.06 20.58 21.84 23.52 25.20

4 Receivables 0.25 9.07 10.19 11.00 11.78 12.57

5 Expenses for One Month 0.50 1.89 2.08 2.29 2.52 2.77

Total Current Assets 54.98 60.97 65.41 70.26 75.15

6 Less: Sundry Creditors 1.00 28.11 28.29 30.46 32.62 34.78

7 Working Capital Gap 26.87 32.67 34.95 37.64 40.36

8 Total Required Margin 6.72 8.17 8.74 9.41 10.09

9 Permissible Bank Finance 20.15 24.50 26.22 28.23 30.27

10 Actual Bank Borrowing 19.00 19.00 19.00 19.00 19.00

on Stock 11.40 11.40 11.40 11.40 11.40

on Book Debts 7.60 7.60 7.60 7.60 7.60

11 Actual Margin 7.87 13.67 15.95 18.64 21.36

Revenue Projections

Sl No Particulars Ist Yr 2nd Yr 3rd Yr 4th Yr 5th Yr

1 Installed Capacity (In MT) 2000 2000 2000 2000 2000

2 Product Mix

100% 100% 100% 100% 100%

Juice 90% 90% 90% 90% 90%

Loss 10% 10% 10% 10% 10%

3 Product wise capacity 2,000 2,000 2,000 2,000 2,000

Juice--90% 1,800 1,800 1,800 1,800 1,800

Loss-10% 200 200 200 200 200

4 Capacity Utilisation 60% 65% 70% 75% 80%

Production (In MT)

Juice

Actual Production 1,080.00 1,170.00 1,260.00 1,350.00 1,440.00

Add: Opening Stock of FG (In MT) - 43.00 49.00 52.00 56.00

Less: Closing Stock of FG (In MT) 43.00 49.00 52.00 56.00 60.00

Value of Opening Stock (Rs. In lacs) - 18.06 20.58 21.84 23.52

Value of Closing Stock (Rs. In lacs) 18.06 20.58 21.84 23.52 25.20

Quantity to be sold (In MT) 1,037.00 1,164.00 1,257.00 1,346.00 1,436.00

Selling Rate per MT 42,000.00 42,000.00 42,000.00 42,000.00 42,000.00

Sales Value (Rs. In lacs) (A) 435.54 488.88 527.94 565.32 603.12

5 Total Sales Value (Rs. In lacs) (A) 435.54 488.88 527.94 565.32 603.12

6 Closing Stock of Finished Goods (Rs. In lacs) 18.06 20.58 21.84 23.52 25.20

Fund Flow Statement

SL. NO.

PARTICULAR Ist Yr 2nd Yr 3rd Yr 4th Yr 5th Yr

CASH INFLOW

1 Profit before Tax 49.75 64.83 77.55 89.48 100.58

2 Add:- Depereciation 29.05 25.12 21.74 18.83 16.32

3 Priliminery Exps. W.O. - - - - -

4 Cash Accurals (1+2+3) 78.81 89.96 99.29 108.31 116.90

5 Receipt of capital subsidy from Bihar Govt.

6 Increase/(Decrease) in C.L. 28.11 0.18 2.16 2.16 2.16

7 Contribution by Shareholder/Promoter 60.00 - - - -

8 Increase in Term Loan from Bank 180.00

9 Increase in Un. Sec. Loan

10 Increase in Working Capital 19.00 - - - -

A.Total (Rs.)(4 to 14) 365.92 90.14 101.45 110.47 119.06

CASH OUTFLOW

1 Preliminery & Preoperative Expenses -

2 Increase in Current Asset 88.09 30.79 34.24 34.62 64.63

3 Increase in Cap. Expenditure 222.35

4 Decrease in Term Loan 25.71 25.71 25.71 25.71 25.71

5 Investment - - - - -

6 Dividend Paid - - - - -

7 Income Tax Paid 16.91 22.04 26.36 30.41 34.19

B.Total (Rs.) (1 to 9) 353.06 78.55 86.31 90.75 124.53

C.Surplus/Deficit from Project (A-B) 12.86 11.59 15.14 19.72 (5.47)

D. Opening Balance of Cash & Cash Equivalent - 12.86 24.45 39.60 59.32

E. Closing Balance of Cash & Cash Equivalent(C+D) 12.86 24.45 39.60 59.32 53.85

Balance Sheet Cash & Bank 12.86 24.45 39.60 59.32 53.85

Particulars Ist Yr 2nd Yr 3rd Yr 4th Yr 5th Yr

Liabilities

Capital 60.00 60.00 60.00 60.00 60.00

Reserve & Surplus 32.84 75.64 126.83 185.89 252.29

Term Loan 154.29 128.57 102.86 77.14 51.43

Bank Borrowing for Working Capital 19.00 19.00 19.00 19.00 19.00

Sundry Creditors 28.11 28.29 30.46 32.62 34.78

Provision for Taxation 16.91 22.04 26.36 30.41 34.19

Total 311.15 333.54 365.50 405.07 451.69

Assets

Gross Block 222.35 222.35 222.35 222.35 222.35

Less- Accumulated Deprection 29.05 54.18 75.92 94.75 111.07

Net Block 193.29 168.17 146.43 127.60 111.28

Current Assets

Inventory

Raw Materials 25.95 28.11 30.28 32.44 34.60

Consumables Stores & Packing Materials 0.00 0.00 0.01 0.01 0.01

Closing Stock 18.06 20.58 21.84 23.52 25.20

Receivables 9.07 10.19 11.00 11.78 12.57

Other Current Assets

Taxation Advance 16.91 22.04 26.36 30.41 34.19

Other Current Assets 35.00 60.00 90.00 120.00 180.00

Cash & Bank Balances 12.86 24.45 39.60 59.32 53.85

Miscellaneous Expenditure (not w/o) - - - - -

Total 311.15 333.54 365.51 405.07 451.69

Particulars Ist Yr 2nd Yr 3rd Yr 4th Yr 5th Yr

Sales 435.54 488.88 527.94 565.32 603.12

Less- Duty & Taxes - - - - -

Net Sales 435.54 488.88 527.94 565.32 603.12

Other Income - - - - -

Total 435.54 488.88 527.94 565.32 603.12

Variable Cost

Raw Materials Consumed 311.42 337.37 363.33 389.28 415.23

Consumables & Packing Materials 0.04 0.04 0.05 0.06 0.07

Wages & Salary 20.30 20.30 22.33 24.57 27.02

Power 10.08 11.14 12.24 13.37 14.55

Repair & Maintenance 2.15 2.37 2.60 2.86 3.15

Other Manufacturing Expenses 2.00 2.40 2.88 3.46 4.15

Cost of Production 346.00 373.62 403.43 433.59 464.17

Add: Opening Stock of Finished Goods - 18.06 20.58 21.84 23.52

Less: Closing Stock of Finished Goods 18.06 20.58 21.84 23.52 25.20

Cost of Sales 327.94 371.10 402.17 431.91 462.49

Gross Profit :- 107.60 117.78 125.77 133.41 140.63

Selling & Administrative Expenses 10.89 12.22 13.20 14.13 15.08

- Other Selling & Adm. Exps. 10.89 12.22 13.20 14.13 15.08

Profit before Interest & Depreciation 96.72 105.55 112.57 119.27 125.55

Depreciation 29.05 25.12 21.74 18.83 16.32

Profit before Interest & Taxation 67.66 80.43 90.83 100.44 109.24

Interest on

Term Loan 16.20 13.89 11.57 9.26 6.94

Working Capital 1.71 1.71 1.71 1.71 1.71

Total Interest 17.91 15.60 13.28 10.97 8.65

Profit before Taxation 49.75 64.83 77.55 89.48 100.58

Current Tax 16.91 22.04 26.36 30.41 34.19

Deffered Tax - - - - -

Profit after Tax 32.84 42.80 51.19 59.06 66.39

Add: Profit B/f from Previous Year - 32.84 75.64 126.83 185.89

Balances transfer to Reserve & Surplus 32.84 75.64 126.83 185.89 252.29

SI No.

Particular Ist Yr 2nd Yr 3rd Yr 4th Yr 5th Yr

1 Profit Before Taxation 49.75 64.83 77.55 89.48 100.58

2 Add: Depreciation 29.05 25.12 21.74 18.83 16.32

3 Less: Depreciation 29.05 25.12 21.74 18.83 16.32

4 Taxable Income 49.75 64.83 77.55 89.48 100.58

5 Tax as per normal provision @26% 16.91 22.04 26.36 30.41 34.19

6 Book Profit u/s 115 JB 49.75 64.83 77.55 89.48 100.58

7 Tax on above @20.96% including surcharge 10.43 13.59 16.25 18.75 21.08

8 Income Tax Payable (5 or 7 whichever is higher) 16.91 22.04 26.36 30.41 34.19

Financial Ratios

Gross Profit Ratio

24.71 24.09 23.82 23.60 23.32

Net Profit Ratio 7.54 8.75 9.70 10.45 11.01

Current Ratio 2.14 3.03 3.90 4.79 5.69

DSCR 2.85 2.98 3.08 3.18 3.27

BEP 0.59 0.49 0.41 0.35 0.30

IRR 15%

DSCR

SI No.

Particular Total Ist Yr 2nd Yr 3rd Yr 4th Yr 5th Yr

1 Profit after Taxation 252.29 32.84 42.80 51.19 59.06 66.39

2 Interest on Term Loan 57.86 16.20 13.89 11.57 9.26 6.94

3 Deffered tax Liability - - - - - -

4 Depreciation 111.07 29.05 25.12 21.74 18.83 16.32

5 Preliminary Expenses w/o - - - - - -

Total 421.21 78.09 81.81 84.50 87.15 89.66

1 Repayment of Term Loan 128.57 25.71 25.71 25.71 25.71 25.71

2 Interest on Term Loan 8.55 1.71 1.71 1.71 1.71 1.71

Total 137.12 27.42 27.42 27.42 27.42 27.42

DSCR (Gross) 3.07 2.85 2.98 3.08 3.18 3.27

BEP

SI NO Particulars Ist Yr 2nd Yr 3rd Yr 4th Yr 5th Yr

A Net Sales 435.54 488.88 527.94 565.32 603.12

Add: Closing Stock of F.G 18.06 20.58 21.84 23.52 25.20

Less: Opening Stock of F.G - 18.06 20.58 21.84 23.52

Total 453.60 491.40 529.20 567.00 604.80

B Variable Cost

Raw Materials Consumed 311.42 337.37 363.33 389.28 415.23

Consumables Packing Materials 0.04 0.04 0.05 0.06 0.07

Wages & Salary 20.30 20.30 22.33 24.57 27.02

Power & Fuel 10.08 11.14 12.24 13.37 14.55

Other Manufacturing Expences 2.00 2.40 2.88 3.46 4.15

Repair & Maintenance 2.15 2.37 2.60 2.86 3.15

Other Selling & Administrative Exps 2.18 2.44 2.64 2.83 3.02

Interest on working Capital 1.71 1.71 1.71 1.71 1.71

Total 349.88 377.78 407.78 438.13 468.89

C Contribution 103.72 113.62 121.42 128.87 135.91

P/V Ratio 22.87 23.12 22.94 22.73 22.47

D Fixed & Semi-Varable Exps.

Salaries 10.15 10.15 10.15 10.15 10.15

Other Selling & Adm.Exps. (50%) 5.44 6.11 6.60 7.07 7.54

Interest on Term Loan & Other 16.20 13.89 11.57 9.26 6.94

Depreciation 29.05 25.12 21.74 18.83 16.32

60.85 55.27 50.07 45.30 40.95

BREAK EVEN POINT 0.59 0.49 0.41 0.35 0.30

13. Project impact

As discussed earlier, the project will have various positive impacts such as:

Infrastructure for value addition: This unit would aim to integrate and streamline existing value

chains in the region by creating centralized infrastructure for value addition and preservation. The

unit will thus provide benefits on cost, quality and convenience for sustainable growth in the

market driven economy. The unit has been envisaged in a way that it would ensure better returns

to all players in each level of value chains ranging from procurement, storage, processing,

packaging to distribution of food commodities through vertical integration of functions and

horizontal linkages of destinations.

Reduction of Wastages: The infrastructure created at the unit along with the integration of

backward and forward linkages would lead to more efficient supply chains and reduction of

wastages. This would provide higher value realization to all players in the supply chain including

the farmers.

Creation of employment: The project shall generate employments. It is estimated that the it

would generate direct employment of about 14 workers and indirect employment of another 30

workers. Most of the manpower requirement will be met from the local area.

Return to farmers: The unit will be benefiting farmers in the region by increasing the returns for

farmers by decreasing wastages and increasing demand of the agricultural produce