Friday, 11 November 2011

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 depreciation00.98
Interest02.32
40% of salary, wages, utility, contingency03.40
Insurance00.10
Total06.80
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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