Friday, 11 November 2011

Start a Ready to Eat Vegetables Business


(209)  Start a Ready to Eat Vegetables Business 
1.0 Product and Applications

Lifestyle is changing in most of the urban cities very rapidly. With both the husband and wife working the eating and cooking habits are undergoing changeover. Couples do not find time to search for fresh vegetables sort and clean them and undertake cooking. They seek other options which are less time taking and convenient. Thus ready to eat vegetables are the alternative. Vegetables are a seasonal product and cannot be stored over a long period. Majority of the vegetables are not available during off season. If the vegetables when available are cooked and preserved they can be easily utilized and save the trouble of cooking. These precooked Indian curried vegetables are also popular in Middle East and Western countries where ever Indians have settled. The precooked vegetables can also be consumed during off season for any particular item. Thus when peas are not available during summer season one can relish peas products in the ready to serve variety. Thus ensuring supply during off season. This value addition to the vegetables besides ensuring availability also improves its economics. Some of the popular vegetables such as peas, cauliflower, spinach, carrots etc. can be cooked and preserved for consumption through out the year. The technology for such Ready to Eat Vegetables is available with CFTRI. Compliance with PFA Act for such a unit is essential.
2.0 Industry Profile and Market Assessment
In the Indian households vegetables are cooked every day and infact separately for lunch and dinner. This exercise is time consuming and laborious as fresh vegetables are to be procured cleaned, sorted and cooked. Thus popular Indian curried items like Rajma, Dam Aloo Malai kofta, Chole, and paneer items can be cooked and canned. In the present day fast life the housewife can hardly spare time for such activity along with their career. Ready to Eat vegetables are thus a solution to save time and ensure availability of vegetables for meals. Pre cooked and preserved ready to Eat vegetables will ensure the availability through out the year. It is easier to store and transport. The major limitation with the bulk of Green vegetables is that they are grown in a limited period only lasting for 3-4 months and thus their availability is restricted to this period. Pre cooking of vegetables and canning it results in it being easier to handle. This also helps in exporting the product to other countries where ever Indian cuisine is popular. It has a good demand in urban areas and metropolitan cities. Once the product establishes its Brand, export opportunities can also be explored. Middle East countries and other western countries with Indian population are places where it has demand.
3.0 Manufacturing Process & Know How
The process of manufacturing is simple and standardized. Vegetables and pulses are washed and thoroughly cleaned. The vegetables like cabbage, cauliflower, spinach, potatoes and carrots are peeled wherever required and cut to size. They are then cooked in steam jacketed kettle. The pulses are cleaned and similarly cooked. Simultaneously curry is prepared with ingredients like chopped tomatoes, onions; butter/ghee, chilly spices etc. and both are mixed. On cooling they are packed in sterilized cans and the cans are vacuumasied and sealed. The yield is 120% because of addition of other ingredients and water.

Process Flow Chart
Know how is available with Central Government research Laboratories. The machinery is all indigenously available. The production capacity envisaged is 150 tonnes per year 300 days working.
4. Plant and Machinery: The main plant and machinery required comprise
  • Potato peeler - 1 nos.
  • Blancher - 1nos.
  • SS steam jacketed kettle. - 1nos
  • Automatic slicer - 1 nos
  • Pulper - 1 nos.
  • Can reformer & Flanger. - 1 nos
  • Hand flance rectifier - 1 nos
  • Can sealer - 1 nos
  • Embossing machine - 1 nos.
  • Exhaust Box - 1 nos.
  • Can Seamer - 1 nos.
  • Mini Boiler - 1 nos.
  • SS tanks, trays, crates, weighing scales.
The total cost of machinery is estimated to be Rs.6.08 lakhs.
The unit will also require miscellaneous assets such as furniture, fixtures, storage facilities etc. the total cost of these is estimated to be Rs. 0.75 lakhs.
The total requirement of power shall be 40 HP, the unit will need 10 tonnes of coal per month and 3000 lits of water daily.

5. Raw material and Packing Material: The basic raw material for the unit is different fresh vegetables. Depending on the availability of vegetables the product mix will change. Similarly the price would depend on the product mix. Thus without a firm mix it will be difficult to arrive at the actual price.

The unit will also require spices salt edible oils, rajma, paneer etc. Packing material like cans, labels, cartons strappings etc will also be required. On an average the raw material cost has been taken at Rs. 7000/- per tonne and other ingredients, packing material at 15000/- per ton. The total cost of raw material and packing material at full capacity is estimated to be Rs. 32.75 lakhs. The total requirement is estimated to be 125 tonnes of vegetables at 100% capacity. The price of packing material has been estimated at Rs. 22.50 lakhs. At 60% capacity in 1st year the cost works out to Rs 19.65 lakhs. The unit can avail bank finance on packing material only.
6. Land and Building: For smooth operation of the unit, it will require 300 sq. mts of open land and a built up area of 150 sq. mts. The total cost of land and building is estimated at Rs. 4.00 lakhs.
7. Manpower:
For smooth functioning of the unit the requirement of man power is expected to be around 8 persons.
Sales personself
Skilled Workers3
Semi skilled workers2

The annual salary bill is estimated to be around Rs.2.22 lakhs.:
8. Sales Revenue: (100% capacity)
Selling price varies depending on the product mix quality and the availability of vegetables and demand. An average price of Rs 45,000/- per tonne has been taken the annual income at installed capacityof 150 tonnes is Rs 67.50 lakhs.
9) Cost of Project:
ParticularsRs. lakhs
Land & Building5.00
Plant & Machinery6.08
Other assets0.75
P & P expenses1.00
Margin money1.50
Means of Finance
Promoters Contribution4.63
Term Loan10.80
10. Profitability:(60% capacity)
Sales40.50 (Rs. lakhs)
Raw material19.65
Stores & Spares0.60
Repairs & Maintenance0.84
Selling expenses8.10
Administrative expenses0.60
Interest on T.L1.18
Interest on W.C0.41
Cost of production38.02
12. Requirement of Working Capital
MarginW.CMargin Money
Raw material1 month30%1.100.35
Stock of finished goods15 days25%1.100.25
Working expenses1 month100%0.500.50
Sale on credit1 month25%1.700.40
Margin money for W.C1.50
13. Break Even point:      55%
14. Machinery Suppliers :
a. M/S Auric techno services P. Ltd, Sreenath Hermitage Baner Road Pune 411008.
b. M/s Raylon Metal Works J.B.Nagar, Andheri(E) Mumbai.
c. M/S Container Industries.C299, Ghatkopar Ind. Estate LBS marg Mumbai.
d. M/S Techno Equipment 31, Parekh Street, Girgaum, Mumbai.

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