A

BUSINESS PLAN PROJECT REPORT

on
Fruit juice Processing, Tetrapackaging & Supply in Delhi,
Ghaziabad & Noida
A report submitted to IIMT, Greater Noida in the partial fulfillment of full time
Post Graduate Diploma in HUMAN RESOURES Management.

Submitted To:

Submitted By

Dr. D.K.GARG
CHAIRMAN

SUPRIYA RAI
HRR 2050
SHAFAQ RIAZ
HRR 2034
PGDHR SEC-P

IIMT, GREATER NOIDA

ISHAN INSTITUTE OF MANAGEMENT & TECHNOLOGY

2, KNOWLEDGE PARK, GREATER NOIDA
Website- www.ishanfamily.com

INDEX
16.
S.NO.

LEGAL ASPECTS
CHAPTERS

23
PAGE NO.

17.
1.

CONCLUSION
PREAMBLE

24
2-3

2.

PURPOSE OF STUDY

3.

THE BUSINESS (S.& S.GROUP LTD.)

5-6

4.

LOCATION

5.

MANPOWER REQUIREMENTS

6.

MACHINERY REQUIREMENTS

8-11

7.

TECHNICAL KNOW-HOW

12

8.

PLANT LAY-OUT

13

9.

DEMAND FOR PRODUCT

13-14

10

SUPPLY & SOURCES FOR RAW MATERIALS

14

11.

MAJOR COMPETITORS OF FRUIT JUICE

INDUSTRY IN INDIA

15-17

12.

18

13

STATEMENT SHOWING RECIEPTS &

PAYMENTS
BREAK EVEN POINT ANALYSIS

14.

WHY ARE WE INTERESTED IN BUSINESS

20-21

15.

TAX APPLICATION

21-22

1. PREAMBLE

19

FOOD PROCESSING
Food processing involves any type of value addition to agricultural or horticultural
produce and also includes processes such as grading, sorting, packaging which enhance
shelf life of food products. The food processing industry provides vital linkages and
synergies between industry and agriculture. The Food Processing Industry sector in India
is one of the largest in terms of production, consumption, export and growth prospects.
The government has accorded it a high priority, with a number of fiscal relief and
incentives, to encourage commercialization and value addition to agricultural produce,
for minimizing pre/post harvest wastage, generating employment and export growth.
India's food processing sector covers a wide range of products fruit and vegetables; meat
and poultry; milk and milk products, alcoholic beverages, fisheries, plantation, grain
processing and other consumer product groups like confectionery, chocolates and cocoa
products, Soya-based products, mineral water, high protein foods etc.
At present the food processing sector employs about 13 million people directly and about
35 million people indirectly. India produces annually 90 million tonnes of milk (highest
in the world) & 150 million tonnes of fruits & vegetables (second largest).
Advantage in India

India is one of the largest food producers in the world.

India has diverse agro-climatic conditions and has a large and diverse raw
material base suitable for food processing companies.
India is looking for investment in infrastructure, packaging and marketing.
India has huge scientific and research talent pool .
200 million more consumers expected to shift to processed food by 2010.
Well developed infrastructure and distribution network.
Rapid urbanisation, increased literacy, changing life style, increased number of
women in workforce, rising per capita income- leading to rapid growth and new
opportunities in food and beverages sector.
50 per cent of household expenditure by Indians is on food items.

In this series we are moving for fruit juice processing, which is now a days, very popular
among the age group of 14 30 & above. Our target customers are women in homes,
children & teenagers in form of in-home & out-home consumption.
OBJECTIVEAs a great opportunity in this industry, our objectives are-

Our intension is to grow the juice market by providing a new & great testing
product to consumers at right value.
We aim to capture maximum target costumers by providing them a healthy and
nutritive product.
We have an objective to serve our consumers with a tasty & healthy fruit
product , which would also be full of nutrients without any preservatives.
We all know very well that the present era of business is full of cut throat
competition. So, we are targeting to establish our company at the top as a pure &
fresh juice provider company.
We are aiming at customers with more exotic tastes with some mix flavour of
fruits.

MISSION &VISIONOur fruit juice products in tetra pack are aimed at getting more consumers to try this
product and in turned increase the consumer base. Our mission is to provide natural
nutrients to the customers. These fruit juices are free from any type of colours , flavours
and preservatives. Our juice is 100% juice with no water added and free from any type of
colours and flavours. With the market growing at a healthy rate and with changing life
styles and with rising levels of health consciousness among consumers today, the demand
for healthy products is increased. By taking advantage of health consciousness pervading
the market we will introduce our product to increase our target customers.
So our vision is to cultivate a more personal & longer term relationship with
customers.

2. PURPOSE OF STUDY

Our business proposal is to set up a plant of fruit juice processing & supply. In this
we are aiming to manufacture fresh, pure & healthy juice with different flavours, which
would be full of nutrients without any chemical preservatives.
We start processing of fruits by receiving the raw materials ie, fresh fruit from our raw
material suppliers. We put that fruits in process by using required equipments. After
converting raw material into finished goods through various techniques, we start
packaging of juice in tetra packs. The tetra packing adds freshness & nutrient value to our
product.
The purpose of the study of business proposal is to enhance our knowledge of
entrepreneurship and to make our self introduce to the corporate world by establishing
our own business. It helps us to gain the practical knowledge about the entrepreneurship
and organization that how the different departments work and coordinate with each other
and how we have to plan, organize, staff, direct and control the things. It is helpful to
increase our decision making power. We came to know about the legal aspect of the
company.
By starting a business in fruit juice industry, we would come to know all the processes of
manufacturing fruit juice, needs & requirements of raw materials and proper distribution
& promotion of products.
We are very thankful to our honorable chairman sir to provide us a great
opportunity to be aware about each activity related to our business proposal.

3. THE BUSINESS

(S. & S. GROUP LTD.)

India is a tropical country & has accorded a favorable reception to thirst quenchers
such as fruit juice & aerated soft drinks. The nutritive value of real fruit beverage is far
greater than that of synthetic products ,which are being bottled & sold in large quantity
through out the country.
India is a market of diversity- diverse with regards to income, price point of product,
culture & preferences and marketer has to use these diverse characteristics of market.
Drinking juice is not a part of our culture. We drink water in our meals, but in west, one
starts the day with breakfast & a glass of juice. Juice is to a great extent considered as a
luxury, not a necessity in our society, where population is getting more & more health
conscious and realizing the important nutrient values of fruits and that are making a part
of their daily diet.
A marketing research ,carried out across 1200 adults in Mumbai & Delhi, explains that

Most preferred flavour is orange ,followed by apple, sweet orange & mixed fruit
juice in India.
Findings indicate the most packaged juice drinking customers travel abroad on
holidays.
Awareness of trial level of packaged juice is higher in Delhi in comparison to
Mumbai.
55% of respondents consume 1 liter packs at home and 45% of that use 200 ml
pack.

In India, per capita consumption of fruit juice is at a fraction of liter ie, 200 ml.,
whereas, the consumption of fruit juice intake home pack is estimated at 17,250 mn liter
.
Our product FRESHEN Juice have orange, apple & pineapple flavor in 200 ml.,
500 ml.& 1 lt. tetrapacks. Our FRESHEN fruit juices are full of benefits with the
characterstics as

Nutritive contents.
Thirst quenching.
Easy to carry & use in traveling.
Fulfill the customers need of Good Taste with Health.
Easy to have on the breakfast table.

KEY SUCCESS FACTORS

The main key strengths of our company, are as follows, which indicates the future growth
of FRESHEN fruit juice Better technologies used in processing & packaging.
Distribution strategies & reach in market.
Regional taste preferences.
Sourcing of raw materials.
Flexible & effective marketing mix including price, promotion, distribution &
products.
Promotion of products by using hoarding at bus stops, red lights & other crowded
areas.
Future plans

To compete with existing companies in fruit juice industry, we are targeting to

command 30% shares in next 5 years.
To create customers awareness regarding products.
To develop customer base and building customer loyalty.
To spend 15% of sales on promotional activities.

CAPITAL INVESTMENT- Rs.1,08,35,000

Owned Capital- Rs. 54,17,500
Borrowed capital- Rs. 54,17,500 on bank loan @ 6% per annum.

4. LOCATION
The envisage plant can be located in area where transportation cost to deliver the product
to market can be minimized and source of material is adequate. So VIJAI NAGER town
of Ghaziabad is proposed to be the location for the envisaged plant. Here, we have our
plant & machinery with official operation departments. The area required is 1500 sq.
meter.
ADDRESSS & S GROUP LTD.

NH-24
Near Vijay Nagar bypass
GHAZIABAD (U.P.)
.

5. MANPOWER REQUIREMENTS
MANPOWER

NUMBER

SKILLED

HR MANAGER
MARKETING MANAGER
SALES MANAGER
PRODUCTION MANAGER
FINANCE MANAGER

1
2
2
2
1

SEMI-SKILLED

15

ACCOUNTANT
SALESMAN
MECHANICS
ELECTRICIAN
CHEMIST
OPERATORS
SUPERVISORS
STORE ENCHARGE

1
1
1
1
1
6
3
1

UNSKILLED

14

LABORERS
GAURDS

10
4

TOTAL

37

6. MACHINERY REQUIREMENTS

Rotary Fruit & Vegetable Washer- 2

Suitable for washing apples, mangos, pears & other vegetables.

Capacity -1MT-2MT/hour

Vacuum Evaporator- 1

Vapour outlet
Charging hole
BSP boss for pressure/vacuum gauge
Necessary fittings for steam inlet
Light & sight whole, providing with glass
Complete with condenser, vacuum pump, moisture trape.
Capacity -200kg-500kg /batch input.

The Pulper (Juice Extractor)- 1

This machine is used to extract juice & pulp from fruits like Mango, Passion
Fruit, Pineapple, Tomato, Papaya & Vegetables.
The Machine is driven by Electric Motor consisting of rotary blades, scrapers
along with the sieves.
The Machine can be used as Finisher by changing the sieves
Capacity -100 Kg. to 4000kg / Hr.

Pasteurizer- 1

Suitable for Fruit Processing, Milk Processing, available in different type

and capacity

Fruit juice Processing Plant-

Design, Engineering, Supply, Installation, Testing & Commission

of Fruit Juice Processing plant .
Fruit Juice Processing Plant
Fruit Juice Packing Plant
Juice cooler- 1

For controlling ascorbic acid to prevent the reactions in fruit juice.

Filler & Sealer machine

For filling juice in tetra packs & then sealing that pack finally.

Cold Storage

The Manufacturing ProcessHarvesting/collection

When the mature fruit is ready to pick, a crew of pickers is sent in to pull the fruit
off the trees. The collected fruit is sent to packing centers where it is boxed for
sale as whole fruit, or sent to plants for juice processing. The oranges are
generally shipped via truck to juice extraction facilities, where they are unloaded
by a gravity feed onto a conveyor belt that transports the fruit to a storage bin.
10

Cleaning/Grading

The fruit must be inspected and graded before it can be used. An inspector takes a
18 kg sample to analyze in order to make sure the fruit meets maturity
requirements for processing. The certified fruit is then transported along a
conveyor belt where it is washed with a detergent as it passes over roller brushes.
This process removes debris and dirt and reduces the number of microbes. The
fruit is rinsed and dried. Graders remove bad fruit as it passes over the rollers and
the remaining quality pieces are automatically segregated by size prior to
extraction. Proper size is critical for the extraction process.

Extraction

Proper juice extraction is important to optimize the efficiency of the juice

production process as well as the quality of the finished drink. There are two
automated extraction methods commonly used by the industry.
The first places the fruit between two metal cups with sharpened metal tubes
at their base. The fruit solids are compressed into the bottom tube between the
two plugs of peel while the juice is forced out through perforations in the tube
wall.
The second type of extraction ,the fruits are sliced as they pass by a stationary
knife and the halves are then picked up by rubber suction cups and moved against
plastic serrated reamers. The rotating reamers express the juice as the orange
halves travel around the conveyor line. Modern extraction equipment of this type
can slice, ream, and eject a peel in about 3 seconds.

The extracted juice is filtered through a stainless steel screen before it is ready for
the next stage. At this point, the juice can be chilled or concentrated if it is
intended for a reconstituted beverage.

Concentration

Concentrated juice extract is approximately five times more concentrated than

squeezed juice. Diluted with water. Concentration is useful because it extends the
shelf life of the juice and makes storage and shipping more economical. Juice is
commonly concentrated with a piece of equipment known as a Thermally
Accelerated Short-Time Evaporator, or TASTE for short. TASTE uses steam to
heat the juice under vacuum and force water to be evaporated. The pulp is
separated from the juice by ultra-filtration and pasteurized. The clarified juice
containing the volatile flavorings is concentrated at 50 F (10 C) by reverse
osmosis and the concentrate and the pulp are recombined to produce the
appropriate juice concentration. Juice concentrate is then stored in refrigerated
stainless steel bulk tanks until is ready to be packaged or reconstituted.

11

Reconstitution

When the juice processor is ready to prepare a commercial package for retail sale,
concentrate is pulled from several storage batches and blended with water to
achieve the desired sugar to acid ratio, color, and flavor. This step must be
carefully controlled because during the concentration process much of the juice's
flavor may be lost. Proper blending of juice concentrate and other flavor fractions
is necessary to ensure the final juice product achieves a high quality flavor.

Pasteurization

Pasteurization is still required to further retard spoilage. Pasteurization also

inactivates certain enzymes which cause the pulp to separate from the juice,
resulting in an aesthetically undesirably beverage. Several pasteurization methods
are commercially used. One common method passes juice through a tube next to a
plate heat exchanger, so the juice is heated without direct contact with the heating
surface. Another method uses hot, pasteurized juice to preheat incoming
unpasteurized juice. The preheated juice is further heated with steam or hot water
to the pasteurization temperature. Typically, reaching a temperature of 185-201.2
F (85-94 C) for about 30 seconds is adequate to reduce the microbe count and
prepare the juice for filling.

Packaging/filling

To ensure sterility, the pasteurized juice should be filled while still hot. Where
possible, metal or glass bottles and cans can be preheated. The filling head meters
the precise amount of product into the container, and depending on the design of
the package, it may immediately invert to sterilize the lid. After filling, the
containers are cooled as fast as possible. Orange juice packaged in this manner
has a shelf life of 6-8 months at room temperature.

7. TECHNICAL KNOW- HOW

12

Now a days technology plays a major role in business. From starting up a company to
taking feedbacks in last, technologies are being used everywhere. In fruit juice industry,
the technology, which are very essential, are-

ComputersIn organizations, computer assists us To maintain the records & database of business.
To use internet facilities.
To take feedback from customers side by internet.
To take orders, suggestions, recipies, health tips & for many types of contest also.

Telephones
For providing a proper communication channel in organization telephone facilities are
there. It helps to communicate any message in a very short time period.

Fax MachinesIt is required to send & receive the documents quickly. It is time saving machine for
collecting any type of written data.

EquipmentsThe whole manufacturing process of converting raw materials into finished goods, is
based on machineries like juice extractor, fruits & vegetable washer, vacuum evaporator,
Fruit juice processor plant, juice cooler, filler & sealer machines etc.

8. PLANT LAYOUT

13

The total land area requirement of the plant including provision for open space is 1500
square meter. Of this, about 900 m2 is built up area. The remaining will be an open space
for parking and future expansion. In front we have reception after reception on the right
side we have our office and on the left side we have marketing, finance, hr, sales, and
production departments and conference hall. On the back side we have manufacturing
unit and the cold storage. All the departments are well furnished and computerized with
video cameras in manufacturing area also.
In that plant, we have provided proper ventilation, drinking water, canteen, separate
toilets, parking, proper lighting etc. There are air conditioners & mice system in the
conference room. The service of first aid related to any industrial accidents as well as
physical trouble .

9. DEMAND FOR THE PRODUCT

This profile envisages the establishment of a plant for the production of juice with
a capacity of 180 tonnes per annum.
The present demand for the proposed product is estimated at 144 tonnes per
annum.
The plant will create employment opportunities for 37 persons.
The total investment requirement is estimated at RS.1,10,00,000, out of which
million is required for plant and machinery.
The future demand for agro-industrially processed orange and mandarin juice is
mainly a function of urbanization, income, price and change in the consumption
habits of the population. As income rises and urbanization grows there is a shift
towards more expensive but conveniently packed and available foods.

However, the opportunity that such changes present could be exploited only if price
of the items is not prohibitive when compared to fresh fruit, and the quality is
competitive enough with similar imported products. Demand for fruit juice is
forecasted to grow at the rate of 6% per annum
. Currently, fruity juices of various types (Orange, Pineapple, Apple, Mango, etc) sell for
a price ranging from RS.85 per 500 millitre in the retail market. The average price would,
thus, be RS.80-95 . Taking this price as a reference, and allowing margin for wholesalers
and retailers, a factory-gate price of RS. 80 is proposed.

DISTRIBUTORS-

14

A suitable distribution system for fruit juice is one, which relies on wholesaler, who in
turn would ensure proper distribution through the existing retail channels (supper markets
and grocery shops).
For the reach of the customers, we have a distributor Mr. Anoop Mittal and Mr. Jaideep
Singh in Noida
& Ghaziabad. For Delhi side, distribution of our product-FRESHEN Juice-is carried
out by Mr. Abhishek Guha.
We cover Delhi, Noida & Ghaziabad as our target markrt.

10. SUPPLY AND SOURCES FOR RAW MATERIAL

The first step in the manufacturing of fruit juice is the supply and the source of raw
material. For the supply of raw material we have the following two suppliers 1. Mr. Harendar singh chaudhary (permanent supplier)
2. Mr. Ajeet Kumar (optional)
Our both suppliers our from Hapur side. We have one permanent supplier and one
optional supplier for emergency situation. As Hapur side is a village area so our suppliers
provide us fresh and good quality raw material at reasonable rates. So the supply of raw
materials from village area reduces the cost incurred in production.

11. MAJOR COMPETITORS OF FRUIT JUICE

INDUSTRY IN INDIA

15

In fruit juice industry, the two major players like Dabur Foods, Pepsi Foods, Godrej
Industries Foods Division, Mother Dairy and even the small Ladakh Foods are betting
big money on this market by flooding it with new fruit beverages.
The DABUR company which has turned fruit juices into a Rs 60-crore business has been
turning on the taps in recent months. Its heading off in untested directions by launching a
new range called Coolers which includes traditional recipes like Aam Ka Panna (a green
mango drink). It has also launched a pomegranate juice and a water melon drink. A
jamun variant will soon follow. Pepsi Foods that has recently launched Tropics, a new
range of what are called nectars in the fruit juice business. Pepsi has started out with a
relatively unadventurous mango flavour but it will soon be putting guava and litchi on the
shelves.
Dabur and Pepsi Foods arent the only companies that are moving into overdrive in the
juice business. As Indians take bigger swigs than ever before of packaged juices a slew of
companies are hoping to grab a share of the action.
The swift growth in the market is attracting newcomers like Mother Dairy which recently
launched the Safal brand of juices. Safal is currently available in orange, mixed fruit,
grape and an orange-apple combination. Ladakh Foods, makers of the Leh Berry
seabuckthorn berry drink, has now also launched an apple-peach combination juice and a
mixed fruit variant.
Even Godrej Industries Foods Division has introduced fruit juices under the Xs brand
(which earlier only consisted of nectars) and a soya milk fruit juice based drink called
Sofit this year. Parle Agro of Frooti and N-joi fame too is rumoured to be on the
verge of new launches.
Fruit-based milk drinks (market size Rs 20 crore to Rs 25 crore) like N-joi are currently
stagnating. But fruit-based soya milk, another emerging segment reckoned to be worth
about Rs 15 crore to Rs 20 crore is expected to grow rapidly. Godrej, which recently
launched the Sofit brand, is experimenting with this market for the second time.

NAME OF MAJOR PLAYERS

16

MOTHER DAIRY FOOD

LADAKH FOOD
PEPSI FOOD

17

DABUR FOOD

GODAREJ FOOD

PEPSI has 14 plants in India and 2 of them work on tetra pack. Pepsi recently
launched Tropicana Tropics Mango Nectar, which is made entirely from mangoes
sourced from within India, as against other flavours for which sourcing has to be done
from other countries. The introduction of Tropics Mango Nectar will be followed by
Tropics Litchi and Tropics Guava. India is now among the top ten markets for Tropicana
worldwide. Significantly India is now an approved source for mango pulp within the
Tropicana worldwide system, and can soon emerge as a major sourcing base for other
exotic fruits for Tropicana's international market. Which means that if the fruit juice
producers work on further development of backward linkages, the pricing issue plaguing
this industry can be better tackled.
For Safal, with its expertise in producing and marketing various horticultural products in
India as well as overseas, juices are a logical extension of its portfolio. With the launch of
Safal juices, our intention is to grow the juice market further by providing a great-tasting
product to the consumer at the right value.

18

12. STATEMENT SHOWING RECIEPTS & PAYMENTS

INITIAL INVESTMENTS

S. NO.

PARTICULARS

AMOUNT(Rs.)

1.

Plant and machinery

10,00,000

2.

Advertisement

3.

Legal charges

25,000

4.

Preliminary expenses

60,000

5.

Raw material

6.

Other Machineries

7.

Case In Hand

8.

Furniture

9.

Land

40,00,000

TOTAL

83,85,000

4,00,000

11,00,000
4,00,000
10,00,000
4,00,000

Total cost of production= Initial investment + expenses

= 35,63,100 + 83,85,000
= Rs. 1,19,48,100

13. BREAK EVEN POINT ANALYSIS

Total Unit produced- 4,40,000
Net sales- Rs. 1,39,50,000
Variable costs- Rs
Fixed cost- Rs. 35,63,100
Operating expenses- Rs.
Net profit =sales - production costs
=1,39,50,000-1,19,48,100= Rs. 20,11,900

19

RECIEPT & PAYMENT STATEMENT

Cr.
RECIEPT

Dr.
AMOUNT(RS.)

PAYMENT

SALES-

PURCHASE-

Fruit juice

Salary & wages

200 ml tetra pack

(3,00,000 units @
Rs.18 each)

54,00,000

500 ml tetra pack

(90,000 units @
Rs.45 each)

40,50,000

1 lt. tetra pack

(50,000 units @ Rs.
90 each)

45,00,000

TOTAL

AMOUNT(RS.)

20,00,000

Depreciation
Furniture.

on

50,000

Depreciation
machines.

on

1,00,000

Utility expenses
(water& electricity)

5,00,000

Interest on loan @
6%.

2,51,550

Dividend on 6%
Pre. Shares @
Rs.500 each

1,50,930

Dividend on 6%
equity shares @
Rs.300 each.

1,00,620

Office expenses

2,00,000

Transportation
Expenses

1,00,000

Packaging
Expenses

1,00,000

1,39,50,000

35,63,100

B.E.P.% = Total fixed expenses / total fixed expenses +

operating expenses*100
=

20

14. WHY AM I NTERESTED IN BUSINESS

What also made the market work is the fact that tetrapacks offered a solution to
provide fruit juice practically fresh and preservative free. The proliferation of
supermarkets and malls in metros and mini-metros (key markets for this category), added
to the growth story as well. And then there is the income factor. Consumers perceive this
as the next best thing to having a fresh fruit. Convenience is no longer the selling point,
the naturalness is.
Industrial analysis
This industry has some factors to grow

Consumption of juices which has gone up from 30 percent three years back to
almost 80 percent today.

The fruit juice category is rapidly growing by over 50 percent because it's seen as
healthy compared to soft drinks.

They are more hygienic than roadside fruit juices and are a big hit with yuppies.
Also, non-sugar variants find flavour with fitness freaks.

The fruit drink market in which juice accounts for 30 per cent, nectar is 10 per
cent and fruit drinks are 60 per cent of the market today, has grown at a 20 per
cent to 25 per cent rate.

Even when the fruit juice/nectar market is projected to grow at a scorching pace of
40 percent, a Tetra Pack study has found that a whopping 86 percent of the fruit juice
market is still lying untapped. With the market growing at a healthy rate and with
changing lifestyles and rising levels of health consciousness among consumers today, the
demand for healthier products like packaged fruit juice is only going to increase in the
times to come..
Obviously, some segments are doing better than others. Fruit-based milk drinks
(market size Rs 20crore to Rs 25crore) like N-joi are currently stagnating. But fruit-based
soya milk, another emerging segment reckoned to be worth about Rs 15 crore to Rs 20
crore is expected to grow rapidly. Godrej, which recently launched the Sofit brand, is
experimenting with this market for the second time. Ten years back, its soya milk brand
Great Shakes failed miserably because of its taste.

21

Rs.100 crore packaged fruit juice market is estimated to be growing at 20% to 25%
annually, Tropicana & Real holding 40% market shares each. The market can be
categorized in terms of product content & there are three major product content available-

Drinks juice with pulp content less than 40%.

Nectars juice with pulp content between 40- 80%

Juices with pulp content more than 80%.

In this industry, Parle Agros Frooti, a mango drink, was introduced in the tetra packs in
1985 & since then it has been a leader in its segments. The market has suddenly picked
up since 1994-95 .
The above example explains clearly that this industry has been boomed in last decades.
All of this has resulted in increased in-home consumption of juices which has gone up
from 30 per cent three years back to almost 80 per cent today. so, investment in this
industry is not at all a wrong decision. And that is the main reason to be interested in the
fruit juice processing & supply.

22

15. TAX APPLICATION

Various Corporate laws of India like Companies Act, Partnership Act, etc. govern the
working of business organizations in India .
Wealth tax & Income Tax are the two taxes in India which come under the heading of
Direct taxes. Apart from the most common indirect tax i.e. Customs & Excise duty there
are various other Indirect Taxes applicable to business organizations in India like
Service tax, Value added tax, Central Sales tax.
Agricultural growth has been given high priority which turn has opened up new thrust
food processing industry. And the excise duty exemption on refrigeration equipment will
enhance investments in the cold chain sector and help food and beverage sector.
Income Tax ReliefUnder Income Tax Act, allowed a deduction of 100% of profit for five year and 25% of
profits for the next five years in case of new agro-processing industries set up to process,
preserve and package fruits and vegetables.
Custom Duty Relief

Custom duty reduced from 7.5% to 5% on food processing machinery, 20% to

10% on refrigerated vans.
Customs duty on packaging machines reduced from 15 percent to 5 percent.

23

All services provided by Technology Business Incubators exempted from service tax.
Similarly their Incubatees whose annual business turnover does not exceed 50 lakhs
exempted from service tax for the first three years.

16. LEGAL ASPECTS

No industrial license is required for almost all of the food & agro processing industries
under the Industries (Development & Regulation) Act,1951, except for some items like:
beer, potable alcohol & wines, cane sugar, hydrogenated animal fats & oils etc. and items
reserved for exclusive manufacture in the small scale industry.
Registration of co. is a very important step before establish the business. With proper
documentation & legal procedures registration is done by registrar.

Food processing industries were included in the list of priority sector for bank
lending in 1999.

The Ministry of Food Processing Industries is the main central agency responsible for
promoting and regulating processing sector. The Ministry covers the products of
fruits and vegetables, dairy, meat, poultry, fishery, consumer food, grains, nonmolasses based alcoholic drinks, aerated water and soft drink. Ministry acts as a
catalyst for bringing in greater investments into this sector. There are a number of
food laws being implemented by various Ministries/Departments.

Prevention of Food Adulteration Act, 1955 lays down specifications for various
food products for the food safety.

Agriculture Produce (Grading & Marking) Act which lays down the
specifications for various agricultural commodities including some processed
foods.

Laws are being operated by Bureau of Indian Standards (BIS). BIS is the
largest body for formulating standards for various food items.

Essential Commodities Act:

A number of quality control orders have been issued under Essential Commodities
Act such as FPO, MMPO, Meat Product Order and Vegetable Oils Control Order. These
orders primarily meant for regulating the hygienic conditions. To be more specific
following are orders for the food safety and quality.

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Fruit Products Order -1955

Meat Food Products Order, 1973
Milk and Milk Products Order, 1992

17. CONCLUSION
The new wave in the food industry is not only about foreign companies arriving here
attracted by the prospective size of the market, but also about the migration of the Made in
India tag traveling abroad. It can be concluded that the food processing industry in India is a
major driver of economic growth with multiple investment opportunities.

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In this Business Plan, we estimated total investment of Rs.1,61,79,000 and got a profit
of Rs. 3,13,50,000. it shows a net profit of Rs.1,51,71,000. The overall study of this business
plan has made us able to understand the whole process & fund allocation of fruit juice
industry .The total no. of units produced are 4,35,000 in the starting year. The estimated
growth rate is 6% per annum in this industry.
Lastly, the business of fruit juice processing is very rapid in growth of its consumption
rate. It is a product used by everyone. So the target customers are easily using it.

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