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M/s Raspberry Juice

V/1196 B,Kettangal, Koduvally Road,
NIT Campus Po.Kozhikode 6736

PROJECT REPORT
(Of a Fruit Juice Manufacturing Unit)

Prepared under P.M.E.G.P. Scheme

Proprietor
Mr.Muhammed Salman K.

S/o. Moosa Haji,

Kandangal House, Pullavoor,
NIT Post, Kozhikode 673601

Phone: 9847773000

Finance :

State Bank of India

NIT branch, Kozhikode Dt.
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PROJECT HIGHLITES

Name of the Unit : M/s. Raspberry Juices

Address of the Unit : V/1196 B,Kettangal, Koduvally Road,

NIT Campus Po.Kozhikode 673601

Promoter : Mr. Muhammed Salman K

: S/o. Moosa Haji,

Kandangal House, Pullavoor, NIT Post,
Kozhikode 673601

Telephone Number : 9847773000

Total Cost of the Project : Rs. 9,98,000/-

a) Fixed Capital : Rs.7,87,500/-

b) Working Capital : Rs. 2,10,500/-

Means of Financing

a) Own Capital : Rs. 49,900/-

b) Loan : Rs 9,48,100/-

Total : Rs. 9,98,000/-

Total Connected Load : 10 HP

Employment Potential : 8 No’s

Expected Earnings : Rs. 3 lakh to 4 lakh

1. INTRODUCTION
Fruit juices have today become an essential part of human diet and are preferred by all the age
groups as they are a good source of instant energy and vital nutrients. Fruit juices can be easily
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obtained by extracting the pulp of fruits and are generally consumed as a beverage or may be used
for flavoring in foods.
This proposal evaluates the technical feasibility and economical viability of a proposed fruit
juice production unit under the name and style of “RASPBERRY JUICES” with Mr. Muhammed
Salman K. as Proprietor. The Proprietor proposes to set up this unit by availing long term loan from
STATE BANK OF INDIA, NIT Branch, under PRIME MINISTER’S EMPLOYMENT GENERATION
PROGRAMME (PMEGP) Scheme of Dist Industries centre, Kozhikode.

2. MARKET POTENTIAL
India’s packaged juice market has charted a high growth trajectory, thanks to its easy
availability, anytime-anywhere consumption, and convenience. The fruit juice industry has made
good progress in India. The Indian market for fruit juices has reported an annual growth of 25-30%.
The packaged fruit juice is one of the fastest growing products. It has grown at a CAGR of over 30%
over the past decade. At present, the Indian packaged juices market is valued at Rs 1100 crore and is
projected to grow at a CAGR of 15% over the next three years. The rising number of health-conscious
urban consumers is giving a boost to fruit juices. Juices are healthy only when prepared hygienically.
So the hygiene conscious people are only buying packaged fruit juices for the companies that have
trusted brand value in the market.
The packaged fruit juices market can be divided into three subcategories: fruit drinks, juices,
and nectar drinks. Fruit drinks, which have a maximum of 30 per cent fruit content, are the highest-
selling category, with a 60 per cent share of the market. The current market size for the fresh fruit
juice business in India is around 3200 crore. The market is estimated to grow at the rate of 25%-
30%, owing to factors like urbanization, increasing disposable income and entry of organized players
into the market. The pulp and fruit juice production volume amounted to 151.3 thousand metric tons
in the country during fiscal year 2020, up from 143.8 thousand metric tons in fiscal year 2019.

3. PROMOTER
Mr.Muhammed Salman K. Aged 41 years. (Aadhaar : 669187847831) S S/o. Moosa Haji,
Kandangal House, Pullavoor, NIT Post, Kozhikode 673601 as the promoter of this venture. Since the
business is a Juice production, the technical know-how is essential for the smooth running of
business other than better management which is readily available. The Promoter is not anticipating
any problems with the smooth functioning of the unit.
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He has studied up to SSLC and he is belonging to other backward community of Islam. He has
high contact with people from various walks of life. He is well aware and very expert in handling this
activity. His many years of experience will boost this business.

4. BASIS AND PRESUMPTION

I. The basis for calculation of Production capacity has been taken on Single Shift basis on 70%
efficiency.
II. The maximum capacity utilization on Single Shift basis for 300 days a year. During first year
and Second Year of operations the capacity utilization is 70% and 80% respectively. The unit is
expected to achieve full capacity utilization from the 4th year onwards.
III. The salaries & Wages Cost of Raw Materials, Utilities, Cost of Land and Rents etc. are based on
prevailing rates in 2017-18 in and around Kerala. These cost factors are likely to vary with time
and with location.
IV. Interest on term loan and working capital loan has been taken at the rate of 10% on an average.
This rate may vary depending upon the policy of the financial Institutions/agencies from time
to time.
V. The cost of Machinery and Equipments refer to a particular make/model and the prices are
approximate prevailing in 2017-18
VI. The breakeven point percentage indicated is of full capacity utilization.
VII. The project preparation cost etc., whenever required could be considered under preoperative
expenses.
VIII. The essential production machinery and test equipment required for the project have been
indicated. The unit may also utilize common test facilities available at Electronics Test and
Development Centre (ETDCs), Electronic Regional Test Laboratories (ERTLs) and Regional Test
Centre (RTCs)

5. TECHNICAL ASPECTS

1. PRODUCTION PROCESS:
Fruit juice is 100% pure juice made from the flesh of fresh fruit or from whole fruit, depending
on the type used. It is not permitted to add sugars, sweeteners, preservatives, flavorings or colorings
to fruit juice. Nowadays, with the benefit of ultra-high temperature (UHT) pasteurization, aseptic
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packaging techniques and systems, pressed juices can be stored for extended periods with very little
deterioration in quality. Previously, reliance had to be places upon the use of preservatives and
‘classical’ pasteurization at lower temperatures (70ºC+) and longer holding times. Aseptic packaging
can be defined as the filling of a commercially sterile product into a sterile container under aseptic
conditions and hermetically sealing the containers so that reinjection is prevented. This results in a
product, which is shelf-stable at ambient conditions.
Although processing methods vary between juices, the general processing method of juices
includes:
 Washing and sorting food source
 Juice extraction
 Straining, filtration and clarification
 Blending pasteurization
 Filling, sealing and sterilization
 Cooling, labeling and packing

2. PRODUCTION CAPACITY PER ANNUM:

@70% of installed capacity
Yearly Income Forecasting:
@ 70% Capacity Utilisation.  
No's item       Total

1 Various Fruits Juices (Avg. 40% of profit) 315,000

Total Projected Monthly Sales Receipts 315,000

Total Projected Annual Sales Receipts 3,780,000

3. MOTIVE POWER
: 10 HP (Approx.)

4. POLLUTION CONTROL:
This industry needs pollution control board certificate to run and

5. ENERGY CONSERVATION:

With the growing energy demand and shortage coupled with rising energy cost, a greater
thrust in energy efficiency in industrial sector has been given by the Govt. of India since 1980s. The
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energy conservation Act, 2001 has been enacted on 18th August, 2001, which provides for efficient
use of energy, its conservation and capacity building of bureau energy efficiency created under the
Act. The following steps may help for conservation of electrical energy:

I. Adoption of energy conserving technologies, production aids and testing facilities.

II. Efficient management of process/manufacturing machinery and systems, QC and testing
equipments for yielding maximum energy conservation.
III. Optimum use of electrical energy for heating during soldering process can be obtained by
using efficient temperature controlled soldering and de-soldering stations.
IV. Periodical maintenance of motors, compressors etc. use of power factor correction capacitors.
V. Proper selection and layout of lighting system. 15
VI. Timely switching On-Off of the lights;
VII. Use of compact fluorescent lamps wherever possible etc.

PMEGPY SCHEME

Objectives

a) To generate employment opportunities in rural as well as urban areas of the country through
setting up of new self-employment ventures/projects/micro enterprises.

b) To bring together widely dispersed traditional artisans/ rural and urban unemployed youth
and give them self-employment opportunities to the extent possible, at their place. To provide
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continuous and sustainable employment to a large segment of traditional and prospective

artisans and rural and urban unemployed youth in the country, so as to help arrest migration
of rural youth to urban areas.

c) To increase the wage earning capacity of artisans and contribute to increase in the growth
rate of rural and urban employment.

Quantum and Nature of Financial Assistance

Levels of funding under PMEGP

Beneficiary’s
Rate of Subsidy
Categories of beneficiaries under PMEGP contribution
(of project cost)
(of project cost)

Area (location of project/unit) Urban Rural

General Category 10% 15% 25%
Special (including SC / ST / OBC /Minorities/
Women, Ex-servicemen, Physically handicapped,
05% 25% 35%
NER, Hill and Border areas etc.

Note:

(1) The maximum cost of the project/unit admissible under manufacturing sector is Rs. 25 lakh.

(2) The maximum cost of the project/unit admissible under business/service sector is Rs. 10 lakh.

(3) The balance amount of the total project cost will be provided by Banks as term loan.

Eligibility Conditions of Beneficiaries

1. Any individual, above 18 years of age

2. There will be no income ceiling for assistance for setting up projects under PMEGP.
3. For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5
lakh in the business /service sector, the beneficiaries should possess at least VIII standard
pass educational qualification.
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4. Assistance under the Scheme is available only for new projects sanctioned specifically under
the PMEGP.
5. Self Help Groups (including those belonging to BPL provided that they have not availed
benefits under any other Scheme) are also eligible for assistance under PMEGP.
6. Institutions registered under Societies Registration Act,1860;
7. Production Co-operative Societies, and Charitable Trusts.
8. Existing Units (under PMRY, REGP or any other scheme of Government of India or State
Government) and the units that have already availed Government Subsidy under any
9. Other scheme of Government of India or State Government are not eligible.

LOCATION & LICENSES

The proposed project located in retnted building room in at V/1196 B,Kettangal, Koduvally
Road, NIT Campus Po.Kozhikode 673601. All infrastructure facilities are available in the location
without any difficult. The location is ideally suited for the proposed unit.

REQUIREMENT OF INFRASTRUCTURE:
The major infrastructure requirements are –
1. Working Shed, store and show room counter : 600 Sq. Ft.
2. Power : 10 HP
3. Water : 10 Ltr/ Day

Working Capital
           
i. Manpower and Salary Requirement(per month)  
Position NO’s Salary/ Month Total
1. Manager (Self ) Remuneration 1 15,000 15,000
2. Skilled Labour 2 12,000 24,000
3. Unskilled Labour 7 8,000 56,000
Total   10   95,000
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The unit will employ persons both skills & unskilled

           
ii. Utilities (per month)
S.No Description Unit Amount Rs.
1 Power LS 4,500
2 Water LS 500
  Total   5,000
           
iii. Other Expenses (per month)
S.No Description Amount Rs.
1 Postage & Stationery Expenses  
2 travelling expenses 500
3 Repairs and maintenance 1,000
4 Insurance 1,000
5 Miscellaneous Expenses 500
  Total 3,000

Total Capital Requirement:

 
1. Fixed Capital
i. Land Development 25,000
ii. Building/Working Shed  
iii. machineries 687,500
vi. Office equipments and furnishing 50,000
v. Electrification works 25,000
Total 787,500
Total amount of Fixed Capital required 787,500
 
         
           
2. Total Working Capital
Raw material Requirement:
Raw material ( various types of fruits) + Packing
1 100,000
=Materials /week
2 Rent 10,000
3 Salary & Wages 95,000
4 Utilities 5,000
5 Other Expenses 500
Total amount of Working Capital required 210,500
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Total Fund Required for the Project [1 + 2] 998,000

Means of Finance:  
Total Fixed Capital Amount 908,926
Total Working Capital Amount 210,500
Total Fund for the Project 1,119,426
i. Term loan 95% 863,480
ii Working Capital Loan 95% 199,975
II. Own capital of Total Loan Amount 55,971
Total 1,119,426
Loan Amount 1,063,455

Yearly Income Forecasting:

@ 70% Capacity Utilisation.
No'
item Total
s
1 Various Fruits Juices (Avg. 40% of profit) 315,000

Total Projected Monthly Sales Receipts 315,000

Total Projected Annual Sales Receipts 3,780,000

Projected Profitability of the Project:

Assumptions
Area of the Project
Annual Increase in Sales Income % 10%
Annual Increase in Operating Expenses: % 10%
Rate of interest on loan: % 11%
Rate of depreciation on fixed assets: % 10%
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Projected profitability for: 1ST YEAR 2ND YEAR 3RD YEAR 4THYEAR 5TH YEAR 6th YEAR 7th YEAR
Capacity Utilisation (In %)- 70 80 90 100 100
1 Expected Service 3,780,000 4,158,000 4,573,800 5,031,180 5,534,298 6,087,728 6,696,501
2 Less Cost of Materials: 1,200,000 1,320,000 1,452,000 1,597,200 1,756,920 1,932,612 2,125,873
2,580,00
3 Gross Profit (1-2): 2,838,000 3,121,800 3,433,980 3,777,378 4,155,116 4,570,627
0
4 Less other operating exp:
i) Rent for Land: 120,000 132,000 145,200 159,720 175,692 193,261 212,587
ii) Salary for staff: 1,140,000 1,254,000 1,379,400 1,517,340 1,669,074 1,835,981 2,019,580
iii) Electricity& Maint: 60,000 66,000 72,600 79,860 87,846 96,631 106,294
iv) Office expenses 36,000 39,600 43,560 47,916 52,708 57,978 63,776
v) Advt and Service expenses: - - - - - - -
Total of Sl. 4. 1,356,000 1,491,600 1,640,760 1,804,836 1,985,320 2,183,852 2,402,237

5 Profit before Depreciation,

1,224,000 1,346,400 1,481,040 1,629,144 1,792,058 1,971,264 2,168,391
Interest and Taxes(3-4)
6 Less Depreciation on Fixed
78,750 70,875 63,788 57,409 51,668 46,501 41,851
Assets:
7 profit before interest and taxes
1,145,250 1,275,525 1,417,253 1,571,735 1,740,391 1,924,763 2,126,540
(5-6):
8 Less Interest payable on loan: 104,291 89,392 74,494 59,595 44,696 29,797 14,899
9 Profit before taxes (7-8): 1,040,959 1,186,133 1,342,759 1,512,140 1,695,694 1,894,966 2,111,641
10 Tax payable : 12% 124,915 166,059 187,986 211,700 237,397 265,295 295,630
11 Calculated Net profit (9-10): 916,044 1,020,074 1,154,773 1,300,441 1,458,297 1,629,671 1,816,011

Percentage of Profit on Services: 24 25 25 26 26 27 27

12 Provision for repayment of
135,443 135,443 135,443 135,443 135,443 135,443 135,443
loan:
13 Retained Profit (11-12): 780,601 884,631 1,019,330 1,164,998 1,322,854 1,494,228 1,680,568
14 Net Cash Accruals 859,351 955,506 1,083,117 1,222,407 1,374,522 1,540,729 1,722,419
[Depreciation added back with retained profit]
15 Cumulated Net profit: 859,351 955,506 1,083,117 1,222,407 1,374,522 1,540,729 1,722,419
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Repayment Schedule:

Proposed Repayment Period: 7 Years

Proposed Repayment Schedule: 1ST YEAR 2ND YEAR 3RD YEAR 4THYEAR 5TH YEAR 6th YEAR 7th YEAR
Refundable loan at the beginning
948,100 812,657 677,214 541,771 406,329 270,886 135,443
of the year
Proposed Repayment during the
135,443 135,443 135,443 135,443 135,443 135,443 135,443
year:
Refundable loan at the end of the
812,657 677,214 541,771 406,329 270,886 135,443 -
year:
Total Debt-Service
239,734 224,835 209,936 195,038 180,139 165,240 150,342
[Interest+Repayment]:
Fund Available for Debt-Service: 1,224,000 1,346,400 1,481,040 1,629,144 1,792,058 1,971,264 2,168,391

Projected Cash Flow Statement:

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a) Sources of Fund: During
1ST YEAR 2ND YEAR 3RD YEAR 4THYEAR 5TH YEAR 6th YEAR 7th YEAR
The-
i) Own Investment: 49,900 49,900 49,900 49,900 49,900 49,900 49,900
ii) Loan from Bank: 948,100 812,657 677,214 541,771 406,329 406,329 270,886
iii) Increase in Subsidy:              
iv) Profit Before Interest and
1,145,250 1,275,525 1,417,253 1,571,735 1,740,391 1,924,763 2,126,540
taxes:
v) Depreciation added back: 78,750 70,875 63,788 57,409 51,668 46,501 41,851
2,222,00 2,208,95 2,208,15 2,220,81 2,248,28 2,427,49 2,489,17
Total
0 7 4 5 7 3 6
b) Uses of Fund:              
i) Increase in Fixed Assets: 787,500            
ii) Increase in Working Capital: 210,500 225,235 241,001 257,872 275,923 295,237 315,904
iii) Decrease in Loan: 135,443 135,443 135,443 135,443 135,443 135,443 135,443
iv) Interest payable: 104,291 89,392 74,494 59,595 44,696 29,797 14,899
1,237,73 452,90 456,06 460,47
Total 450,070 450,938 466,245
4 9 2 7
               
Opening Balance:              
Surplus/Deficit Generated: 859,351 955,506 1,083,117 1,222,407 1,374,522 1,540,729 1,722,419
1,083,11 1,222,40 1,374,52 1,540,72 1,722,41
Closing Balance: 859,351 955,506
7 7 2 9 9
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Projected Balance Sheet:

                   
ST ND RD TH TH th
At the end of- 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7th YEAR
a) Liabilities:              
i) Own Investment: 49,900 965,944 1,986,018 3,140,791 4,441,231 5,899,529 7,529,199
ii) Calculated Net Profit: 916,044 1,020,074 1,154,773 1,300,441 1,458,297 1,629,671 1,816,011
Net Worth: 965,944 1,986,018 3,140,791 4,441,231 5,899,529 7,529,199 9,345,210
iii) Loan at Bank: 812,657 677,214 541,771 406,329 270,886 135,443 -
Total 1,778,601 2,663,232 3,682,562 4,847,560 6,170,414 7,664,642 9,345,210
b) Assets:              
Gross Block as Fixed
787,500 708,750 637,875 574,088 516,679 465,011 418,510
Assets and Pre.Expenses
Less depreciation on Fixed
78,750 70,875 63,788 57,409 51,668 46,501 41,851
Assets:
i) Net Block: 708,750 637,875 574,088 516,679 465,011 418,510 376,659
ii) Working Capital: 210,500 210,500 210,500 210,500 210,500 210,500 210,500
iii) Cash balance: 859,351 1,814,857 2,897,975 4,120,381 5,494,903 7,035,632 8,758,052
Total 1,778,601 2,663,232 3,682,562 4,847,560 6,170,414 7,664,642 9,345,210
Total Investment: 998,000 908,608 834,114 774,519 729,823 700,026 685,127
Return on Investment: 92 112 138 168 200 233 265

BEP [in % of target business] 64.17 63.35 62.16 61.12 60.23 59.46 58.81

DEBT SERVICE COVERAGE RATIO 4.58 5.25 6.16 7.27 8.63 10.32 12.46
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CONCLUSION

The Cost of the proposed project is Rs. 9,98,000/- to raised loan of Rs 9,48,100/- from STATE
BANK OF INDIA, NIT branch, Kozhikode under PMEGP Scheme and Promoter contribution is
Rs. 49,900/- it will observed from the financial statements and projection given in this project report
that the project is financially sound and economically viable. Provided the required finance is
favored by the financial institution. The financial indication of the project is satisfactory.

Place: NIT, Kozhikode

Date: Mr. Muhammed Salman K.