Start a Fruit Vinegar Making Unit

      
(210) Start a Fruit Vinegar Making Unit


      

Vinegar is a natural product derived from alcoholic and acetous fermentation of a suitable medium such as fruits, malt, molasses, sugarcane juice etc. Vinegar is known to have various applications in homes, restaurants and in the food industries. It is used in pickle, chutney, tomato ketchup, sauces and various other condiment preparations. Vinegar aids digestion and improves the quality of cooked meat and fish. Vinegar should contain at least 3.75 g of acetic acid per 100 mL and also contain at least 1.5% w/v of total solids and 0.18% total ash.1.0 Product and its Applications 

2.0 Market Potential 

Vinegar is largely produced in the cottage scale or in traditional sectors. Presently synthetic vinegar is also being produced. Natural fruit vinegar is nutritive, appealing and has a huge market demand.

3.0 Basis and Presumptions 

a) The unit proposes to work at least 300 days per annum on single shift basis.

b) The unit can achieve its full capacity utilization during the 3rd year of operation.

c) The wages for skilled workers is taken as per prevailing rates in this type of industry.

d) Interest rate for total capital investment is calculated @ 12% per annum.

e) The entrepreneur is expected to raise 20-25% of the capital as margin money.

f) The unit proposes to construct own building as per F.P.O. specifications.

g) Costs of machinery and equipment are based on average prices enquired from machinery manufacturers.

4.0 Implementation Schedule

Project implementation will take a period of 8 months. Break-up of the activities and relative time for each activity is shown below:

Scheme preparation and approval	01 month
SSI provisional registration	1-2 months
Sanction of financial supports etc	2-5 months
Installation of machinery and power connection	6-8 months
Trial run and production	01 month

5.0 Technical aspects
5.1 Location

The plant can be located at any suitable place keeping in view the marketing convenience, availability of raw material, power, water and skilled manpower.

5.2 Process of Manufacture

Fruit vinegar is made from fruits e.g. pineapple, apple, grape, orange, banana, peach, apricot as well as sugarcane juice, coconut water, malt, molasses. The juice/ aqueous extract is fermented with Saccharomyces cerevisiae yeast after adjusting sugar concentration. The fermented alcoholic liquor is passed through vinegar generator for acetic acid fermentation using acetobactor culture. It takes nearly 15 days for completion of fermentation process. Vinegar contains about 4% acetic acid. The brewed vinegar is aged in plain oak barrels for at least 6 months to improve the flavour and bouquet. The final product is filtered, packed in bottles and sealed.

5.3 Quality Control and Standards

As per FPO specifications

6.0 Pollution Control 

There is no major pollution problem associated with this industry except for disposal of waste which should be managed appropriately. The entrepreneurs are advised to take "No Objection Certificate" from the State Pollution Control Board.

7.0 Energy Conservation 

The fuel for the steam generation in the boiler is coal or LDO depending upon the type of boiler. Proper care should be taken while utilizing the fuel for the steam production. There should be no leakage of steam in the pipe lines and adequate insulation should be provided.

8.0 Production Capacity 

Quantity	42 tpa (60,000 bottles)
Installed capacity	60 tpa
Optimum capacity utilization	70%
Working days	300
Manpower	12
Utilities
Motive Power	30 kWh
Water	3 kL/day

9.0 Financial Aspects

9.1 Fixed Capital

9.1.1 Land & Building

Particulars	Amount (Rs. Lakh)
Land 700 m 2	01.50
Built up area 400 m 2	03.50
Total cost of land and building	05.00

9.1.2 Machinery and Equipment 

Description	Amount (Rs. lakh)
Vinegar generator, hydraulic press, filter press, fermentation tanks, weighing scales, trolleys, Polythene carboys, wooden barrels, bottle washing unit, PP cap sealing machine, lab equipment.	05.50
Erection & electrification of machinery & equipment @10% cost	00.50
Office furniture & fixtures	01.00
Total	07.00

9.1.3 Pre-operative Expenses 

Consultancy fee, project report, deposits with electricity department etc

01.00 (Rs. lakh)

9.1.4 Total Fixed Capital 

(9.1.1+9.1.2+9.1.3)

13.00 (Rs. lakh)

9.2 Recurring expenses per annum

9.2.1 Personnel 

Designation	No.	Salary Per month	Amount (Rs. lakh)
Manager	1	10,000	01.20
Supervisor	1	7,500	00.90
Office Assistant	1	5,000	00.60
Technician	1	4,500	00.54
Skilled workers	2	3,750	00.84
Unskilled workers	6	3,000	02.16
			06.24
Perquisites @15 %			00.96
Total	12		07.20

9.2.2 Raw Material including packaging materials 

Particulars	Qty (t)	Rate/t (Rs.)	Amount (Rs. lakh)
Fruits	110	10,000	11.00
Glass bottles & caps	60,000	6,000/th	03.60
Labels	60,000	1,000/th	00.60
Chemicals, cobs, sugar, culture	LS	LS	00.40
Lab consumables, misc.	LS	LS	00.30
Total			15.90

9.2.3 Utilities

Particulars	Amount (Rs. lakh)
Power	00.92
Water	00.08
Total	01.00

9.2.4 Other Contingent Expenses 

Particulars	Amount (Rs. Lakh)
Repairs and maintenance @10%	01.05
Consumables & spares, others	01.00
Transport & travel	00.55
Publicity, postage, telephone	00.30
Insurance @ 1%	00.10
Total	00.30

9.2.5 Total Recurring Expenditure 

(9.2.1 + 9.2.2 + 9.2.3 + 9.2.4)

25.15 (Rs. lakh)

9.3 Working Capital 

Recurring expenses for 3 months

06.30 (Rs. lakh)

9.4 Total Capital Investment	Amount (Rs. lakh)
Fixed capital (Refer 9.1.4)	13.00
Working capital (Refer 9.3)	06.30
Total	19.30

10.0 Financial Analysis

10.1 Cost of Production (per annum)	Amount (Rs. lakh)
Recurring expenses (Refer 9.2.5)	25.15
Depreciation on building @ 5%	00.18
Depreciation on machinery @10%	00.60
Depreciation on furniture @ 20%	00.20
Interest on Capital Investment @ 12%	02.32
Total	28.45

10.2 Sale Proceeds (Turnover) per year 

Item	Qty	Rate/bottle (Rs.)	Amount (Rs. lakh)
Fruit vinegar, packed in 650 mL bottles	60,000	55	33.00

10.3 Net Profit per year	=	Sales - Cost of production
	=	33.00 – 28.45
	=	Rs. 4.55 lakh
10.4 Net Profit Ratio	=	Net Profit ×100
		--------------------------
		Sales
	=	4.55 -----------------x 100 33
	=	13.8%
10.5 Rate of Return on Investment
	=	Net Profit ×100
		-------------------------
		Capital Investment
	=	4.55 x 100 ---------------------- 19.30
	=	23.6 %

10.6 Annual Fixed Cost 

	Amount (Rs. Lakh)
All depreciation	00.98
Interest	02.32
40% of salary, wages, utility, contingency	03.40
Insurance	00.10
Total	06.80

10.7 Break even Point

=	Annual Fixed Cost x100
	Annual Fixed Cost + Profit
=	6.80 x 100 ------------------------
	6.80+4.55
=	60%

11.0 Addresses of Machinery and Equipment Suppliers

Narangs Corporation
P-25/90 Connaught Place
New Delhi – 110001

B.Sen Barry & Co.
65/11, New Rohtak Road
New Delhi – 110 005

SSP (Pvt) Ltd.
13th Milestone, Mathura Road
Faridabad – 121003, Haryana

Nirmal Services
2254/23 Rajguru Road , Chuna Mandi, Paharganj
New Delhi – 110055

Ganson Ltd.
645 Anna Salai
Chennai – 600006

Grovers Pvt. Ltd.
223, Kaliandas Udyog Bhavan, Prabhadevi
Mumbai – 400 025

Macneill and Magor Ltd.
4, Mangoe Lane
Kolkata – 700 001

Batliboi Engineers ( Bangalore ) Pvt. Ltd.
99/2&3, N.R.Road
Bangalore – 560 002 

Gardners Corporation
158 Golf Links,
New Delhi – 110 003

Narene Tulaman Manufacturers Pvt. Ltd.
Balanagar
Hyderabad – 500 037

Raylon Metal Works
Kondivitta Lane , J.B.Nagar, Andheri
Mumbai – 400 059

Bajaj Maschinen Pvt. Ltd.
7/20-7/27 Jai Laxmi Industrial Estate, Site IV
Sahibabad Industrial Area - 201010
Dist.Ghaziabad, UP

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