PROJECT REPORT

FRUIT JUICE PLANT

02 APRIL 2024
SHIV KUMAR SAHNI
WARD NO-04, MAKSHUDANPUR, BHADAIYA, MOHIUDDIN NAGAR, SAMASTIPUR,
BIHAR,848502
 BIO DATA

• NAME OF PROPRIETOR :- SHIV KUMAR SAHNI

• ADRESS OF THE UNIT :- WARD NO-04,
MAKSHUDANPUR,
BHADAIYA, M. NAGAR
SAMASTIPUR, BIHAR
848402
• UNIT LOCATION :- RURAL
• PRODUCT ITEM :- FRUIT JUICE
• CATRGORY :- MANUFACTURING
• KIND OF FIRM :- PROPRIETORSHIP
• NAME OF APLICANT :- SHIV KUMAR SAHNI
• NAME OF FATHER :- BIR BABU SAHNI
• NAME OF MOTHER :- RAJKUMARI DEVI
• GENDER :- MALE
• DATE OF BIRTH :- 01-JAN-1992
• RESIDENTIAL ADDRESS :- WARD-04,MAKSHUDANPUR
BHADAIYA, M NAGAR
SAMASTIPUR, BIHAR
848502
• MOBILE NUMBER :- 9334579621
• ACADEMIC QUALIFICATION :- 8TH PASS
• SOCIAL CATEGORY :- OBC
• PAN NO :- LZAPS2283P
• LAND :- PARENTAL
• ADHAAR NO :- 4243 4523 9912

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 PROJECT SUMMARY

1. Name of the proposed project : Shivam Fruit Juice Center

2. Nature of proposed project : Proprietorship

3. Proposed project capacity : 90,000 Kg/annum

4. Raw materials : Raw Fruits, Sweeteners, Container

5. Major product outputs : Fruit Juices

6. Total project cost : Rs. 15,00,000.00

• Land development, building & Civil : Rs. 1,80,000.00

Construction

• Machinery and equipment’s : Rs. 4,40,000.00

• Miscellaneous Fixed Assets : Rs. 61,720.00

• Working capital : Rs. 8,18,280.00

7. Profit after Depreciation, Interest & Tax

• 1styear : Rs. 5,82,901.00

• 2ndyear : Rs. 7,23,751.00

• 3rd year : Rs. 8,76,886.00

• 4th year : Rs. 9,13,396.00

8. Average DSCR : 3.95

9. Project Implementation Period : 6 Months

10. Term loan repayment : 5 Years

11. Employment generation : 6

2
CAPACITY, UTILIZATION, PRODUCTION & OUTPUT: -

COMPUTATION OF PRODUCTION OF FRUIT JUICE

Items to be Manufactured Fruit Juice

Machine capacity Per hour 30 Kg

Total working Hours 10 Hours

Machine capacity Per Day 300 Kg

Working days in a month 25 Days

Working days per annum 300 Days

Machine capacity per annum 90,000 Kg

Final Product Capacity 90 Tons

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 PRODUCT SUMMARY

INTRODUCTION: -
Fruit juices are produced and consumed for their refreshing character and nutritional qualities
being rich in vitamins and minerals and having regulatory functions to the body systems;
such as augmenting of alkaline reserve of the blood and proper functioning of blood vessels,
including capillary, permeability and fragility as a result of contained falconoid. Juices also
increase body retention of calcium, magnesium, nitrogen and are also good sources of quick
energy.
The North-East India is rich in fruit diversity and contains more than one-third of the
country’s total diversity. Fruits are an important source of energy for human-beings. Fruits
are also popular amongst all age groups but their availability is limited during season only
which lasts for a period of 3-4 months for most of the fruits. Hence, they need to be processed
and preserved which also results in value addition.
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 living standards of the Indian people
growing higher, there is a good potential to develop this industry in the small-scale sector.
Considering the potential market opportunity of such units, the present 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 year.

PROJECT DESCRIPTION: -
The proposed project is that of setting up of a Multi-fruit Juice and Squash Processing unit at
suitable location.
The key products of the proposed project are as follows;
Fruit Juice
Fruit Squash

The primary objective of the fruit juice processing is to preserve the perishable fruits in a
stable form that can be stored and supplied to local as well as distant markets round the year.
Processing also can change fruits into new or more usable forms and make fruits more
convenient to prepare.
The use of fruits for the preparation of processed products will not only reduce wastage of
fruits during handling but also add nutrition and palatability to the drink. The rapid increase
in the production of these items in different parts of the country is a proof of their rising
popularity.
The proposed project would procure the raw materials locally. After processing, the products
would be supplied to the market through distributors/ wholesalers/retailers.
MARKETIBILITY: -
The rising number of health-conscious consumers is giving a boost to fruit juices; it has been
observed that consumers are shifting to fruit juices as they consider the same as a healthier
breakfast/snack option. Fruit drinks are popularly used in most urban households.
Today markets are flooded with a large variety of juices e.g., mango, apple, guava, litchi,
grape, 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 fruit drink
industry a booming growth.

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With changing life styles 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 fruit juice sales. Understanding of the
distribution channels is crucial in order 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
fruit juice business is from 15 to 20%.
The proposed business may utilize media such as broadcast, newspapers and also social
network platforms at certain interval of time to introduce the products and also attract more
customers. Placement of the product at strategic outlets and publicity in local media would
boost sales. It may also carry door to door services in the initial years to introduce the
product and attract more customers.
Marketing plan of the proposed project may include promotional campaign like offering
special discounts, referrals, advertisement, new product development, packaging
innovations and tying up with buying houses.

PROCESS OF MANUFACTURING: -
The process flow diagram is as follows:

WASHING, GRADING AND PEELING OF FRUITS

JUICE EXTRACTION AND FLITRATION

STERILISATION

MIXING ADDITIVES AND PRESERVATIVES

PACKING/LOADING/SUPPLY
Process Details: -
Good quality ripe fruits are sorted, washed, peeled and cleaned. Fruits are then passed on to
fruit mill for crushing and then to hydraulic press for juice extraction. Extracted juice is then
filtered to remove seeds and fibers. Thereafter, various ingredients such as sugar, additives,
preservatives, flavors etc. are added and this mixture is stirred till uniform solution is formed.
They are standardized as per the FPO specifications, filtered, homogenized, pasteurized and
filled in sterilized bottles, followed by coding, cooling and packing of the product. Products
will be stored in cool dry store before distribution.
Frequent and continuous availability of quality fruit pulp is a prerequisite for Fruit Juice
Business. It is the only way to integrate operations from fruit orchards to pulp processing to
juice making and packing. Integrated and earlier pulp supply arrangements with pulp
producers and suppliers would be critical in business success.

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 MEANS OF FINANCE

MEANS OF FINANCE (TERM LOAN):-

Own Contribution 10% RS. 68,172.00

Bank Finance 90%

Term Loan RS. 6,13,548.00

Govt. Subsidy 35% RS. 2,38,602.00

MEANS OF FINANCE (WORKING CAPITAL):-

Own Contribution 20% RS. 1,63,656.00

Bank Finance 80%

Working Capital RS. 6,54,624.00

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 COST OF PROJECT
A. Fixed Capital Investment
a. Land : 600 Own

b. Work shed Area Sq. Ft Rate in Rs. Amt. In Rs.

STORAGE 600 300.00 180000.00

Total 180000.00
Amount in
C. Machinery Qty. Rate Rs.
MIXING TANK INCLUDING STIRRER 1 110000.00 110000.00
EXTRACTOR JUICE 1 110000.00 110000.00
WASHING TANK 2 45000.00 90000.00
BOTTLE WASHING AND FILLING MACHINE 1 40000.00 40000.00
TESTING EQUIPMENTS 1 20000.00 20000.00
STORAGE TANK 1 40000.00 40000.00
S.S. UTENSILS 1 SET 30000.00 30000.00

Total 440000.00

d. Preliminary & Pre-operative Cost : Rs. 31720.00

e. Furniture & Fixtures : Rs. 30000.00

f. Contingency/Others/Miscellaneous
: Rs. 0.00

Total Capital Expenditure : Rs. 6,81,720.00

Working Capital : Rs. 8,18,280.00

Total Cost Project : Rs. 15,00,000.00

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 Repayment Shedule of Term Loan and Working Capital

Term Loan
Interest
Year Opening Balance Installment Closing Balance @
11.00%
1st 613548 61355 552193 67490
2nd 552193 122710 429484 60741
3rd 429484 122710 306774 47243
4th 306774 122710 184064 33745
5th 184064 122710 61355 20247
6th 61355 122710 0 6749
7th 0 0 0 0
8th 0 0 0 0

Working capital
Interest
Year Opening Balance Installment Closing Balance @
11.00%
1st 654624 65462 589162 72009
2nd 589162 130925 458237 64808
3rd 458237 130925 327312 50406
4th 327312 130925 196387 36004
5th 196387 130925 65462 21603
6th 65462 130925 0 7201
7th 0 0 0 0
8th 0 0 0 0

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 Statement Showing The Depreciation on Fixed
Assets

WORKSHED @ 10.00%

5th
Particulars 1st Year 2nd Year 3rd Year 4th Year Year

Opening Balance 180000 162000 145800 131220 118098

Depreciation 18000 16200 14580 13122 11810

Closing Balance 162000 145800 131220 118098 106288

MACHINERY @ 15.00%

Opening Balance 440000 374000 317900 270215 229683

Depreciation 66000 56100 47685 40532 34452

Closing Balance 374000 317900 270215 229683 195230

TOTAL DEPRECIATION

Workshed 18000 16200 14580 13122 11810

Machinery 66000 56100 47685 40532 34452

Total 84000 72300 62265 53654 46262

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 SCHEDULE OF SALES REALIZATION

DETAILS OF SALES
Rate/ No. of Amount in Rs.
Particulars of Product
Pair/Unit Pair/Unit

FRUIT JUICE 100 90000 9000000.00

Total 9000000.00

CAPACITY UTILIZATION OF SALES

5th
Particulars 1st Year 2nd Year 3rd Year 4th Year Year

Capacity Utilization 70% 80% 90% 90% 90%

Sales / Receipts 6300000 7200000 8100000 8100000 8100000

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 ESTIMATE OF ROWMATERIALS & WAGES
RAW MATERIALS

Particulars Unit Rate/unit Reqd.Unit Amount in Rs.

FRUITS KG 80 75000 6000000.00

Total 6000000.00

Wages
No. of Wages Amount in Rs.
Particulars
Worker Per Month (Per Annum)
SKILLED LABOUR 2 12000.00 288000.00
UNSKILLED LABOUR 4 10000.00 480000.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0 0.00 0.00
Total 6 768000.00

Repairs and Maintenance : Rs. 270000.00

Power and Fuel : Rs. 270000.00

Other Overhead Expenses : Rs. 90000.00

ADMINISTRATIVE EXPENSES
Telephone Expenses 90000.00

Stationery & Postage 90000.00

Advertisement & Publicity 180000.00

Workshed Rent 0.00

Other Miscellaneous Expenses 90000.00

Total 450000.00

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 CAPACITY UTILIZATION OF
MANUFACTURING & ADMINISTRATIVE
EXPENSES:

Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year

Capacity Utilization 70% 80% 90% 90% 90%

Manufacturing Expenses

Raw materials 4200000 4800000 5400000 5400000 5400000

Wages 537600 614400 691200 691200 691200

Repairs & Maintenance 189000 216000 243000 243000 243000

Power & Fuel 189000 216000 243000 243000 243000

Other Overhead
Expenses 63000 72000 81000 81000 81000

Administrative Expenses

Salary 0 0 0 0 0
Postage Telephone
Expenses 63000 72000 81000 81000 81000

Stationery & Postage 63000 72000 81000 81000 81000

Advertisement & Publicity 126000 144000 162000 162000 162000

Workshed Rent 0 0 0 0 0
Other Miscellaneous
Expenses 63000 72000 81000 81000 81000

Total: 5493600 6278400 7063200 7063200 7063200

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 ASSESSMENT & ESTIMATE OF
WORKING CAPITAL
1. ASSESSMENT OF WORKING CAPITAL

Particulars Amount in Rs.

Sale 9000000.00

Manufacturing Expenses
Raw Material 6000000.00
Wages 768000.00
Repair & Maintenance 270000.00
Power & Fuel 270000.00
Other Overhead Expenses 90000.00

Production Cost 7398000.00

Administrative Cost 450000.00
Manufacturing Cost 7848000.00

2. WORKING CAPITAL ESTIMATE

Element of Working
Capital No of Days Basis Amount in Rs.
0 0 Material Cost 0.00

Stock in process 30 Production Cost 739800.00

Finished goods 2 Manufacturing Cost 52320.00

Receivable by 1 Manufacturing Cost 26160.00

Total Working Capital Requirement Per Cycle 818280.00

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 PROJECTED PROFIT & LOSS ACCOUNT
2nd 4th
Particulars 0 Year 1st Year Year 3rd Year Year
Sales / Receipts 6300000 7200000 8100000 8100000

6300000 7200000 8100000 8100000

Manufacturing Expenses
Raw materials 4200000 4800000 5400000 5400000
Wages 537600 614400 691200 691200
Repairs & Maintenance 189000 216000 243000 243000
Power & Fuel 189000 216000 243000 243000
Other Overhead
Expenses 63000 72000 81000 81000
Depreciation 84000 72300 62265 53654
Production Cost 5262600 5990700 6720465 6711854
Administrative Expenses
Salary 0 0 0 0
Postage Telephone
Expenses 63000 72000 81000 81000
Stationery & Postage 63000 72000 81000 81000
Advertisement & Publicity 126000 144000 162000 162000
Workshed Rent 0 0 0 0
Other Miscellaneous
Expenses 63000 72000 81000 81000
Administrative Cost 315000 360000 405000 405000
Interest on Bank credit @
11%
Term Loan 67490 60741 47243 33745
Working Capital Loan 72009 64808 50406 36004
Cost of Sale 5717099 6476249 7223114 7186604
Net Profit Before Tax 582901 723751 876886 913396
Less Tax 0.00 0.00 0.00 0.00
Net Profit 582901 723751 876886 913396

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 CALCULATION OF DEBT SERVICE CREDIT RATIO
(D.S.C.R)

2nd 4th
Particulars 0 Year 1st Year Year 3rd Year Year

Net Profit 582901 723751 876886 913396

Add:

Depreciation 84000 72300 62265 53654

TOTAL - A 666901 796051 939151 967051

Payments:

On Term Loan:

Interest 67490 60741 47243 33745

Installment 61355 122710 122710 122710

On Working Capital

Interest 72009 64808 50406 36004

TOTAL - B 200854 248259 220359 192459

D.S.C.R = A/B
3.32 3.21 4.26 5.02
Average D.S.C. R

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 PROJECTED BALANCE
SHEET
2nd 4th
Particulars 0 Year 1st Year Year 3rd Year Year

LIABILITIES:

Beneficiary's Capital 231828 231828 231828 231828

Profit 582901 723751 876886 913396

Term Loan 613548 552193 429484 306774

Working Capital Loan 654624 589162 458237 327312

Current Liabilities 0 0 0 0

Sundry Creditors 0 0 0 0

2082901 2096934 1996434 1779310

ASSETS :

Gross Fixed Assets : 650000 566000 493700 431435

Less : Depreciation 84000 72300 62265 53654

Net Fixed Assets 566000 493700 431435 377781

Preliminary & Pre-Op.
Expenses 31720 23790 17843 13382

Current Assets 654624 589162 458237 327312

Cash in Bank/Hand 862277 1014072 1106762 1074218

Total 2082901 2096934 1996434 1779310

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 CASH FLOW STATEMENT
2nd
Particulars 0 Year 1st Year Year 3rd Year 4th Year

Net Profit 582901 723751 876886 913396

Add: Depreciation 84000 72300 62265 53654

Term Loan 613548 552193 429484 306774

Working Capital Loan 654624 589162 458237 327312

Beneficiary's Capital 231828 0 0 0

Total 2166901 1937406 1826871 1601137

Total Fixed Capital

Invested 681720

Repayment of Term Loan 61355 122710 122710 122710

Repayment of WC Loan 65462 130925 130925 130925

Current Assets 654624 589162 458237 327312

Total 781441 842796 711871 580946

Opening Balance 0 1385460 2480070 3595070

Surplus 1385460 1094610 1115000 1020190

Closing Balance 1385460 2480070 3595070 4615260

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 BREAK EVEN POINT AND
RATIO ANALYSIS
4th
Particulars 0 Year 1st Year 2nd Year 3rd Year Year
Fixed Cost 466490 493041 514508 492399
Variable Cost 5334609 6055508 6770871 6747859
Total Cost 5801099 6548549 7285379 7240258

Sales 6300000 7200000 8100000 8100000

Contribution (Sales-VC) 965391 1144492 1329129 1352141

B.E.P in % 48.32% 43.08% 38.71% 36.42%

Break Even Sales in Rs. 3044246 3101722 3135524 2949717

Break Even Units 0 0 0 0

Current Ratio 2.46 1.55 1.30 1.01

Net Profit Ratio 9.25% 10.05% 10.83% 11.28%

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 THIS PROJECT REPORT HAS BEEN PREPARED ON DATA
FURNISHED BY THE ENTERPRENEUR WHOSE DETAILS
ARE GIVEN IN THE APPLICATION

DATE: - 02-04-2024 Authorized Signatory

PLACE: - MOHIUDDIN NAGAR

SHIV KUMAR SAHNI

PREPARED BY: -

RITESH KUMAR
(GSTP1092)
MOB: - 9903393616

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