TIMEIS GOI

Carbonated Fruit Beverages Production Capacity Uploaded on Product and its Applications Carbonated soft drinks are known for their thirst quenching and refreshing properties. However, they lack nutritional content. On the other hand, fruit juices, packed in cans, bottles or pouches are also very popular in the country which contain the nourishing properties and goodness of the fruit. Carbonated fruit based beverage is a new concept which provides nutritional elements of the fruit along with natural pigments and flavour in addition to carbonation effects. Market Potential There is well established market for carbonated soft drinks. The fruit juice/pulp based carbonated beverage is expected to beget a rousing response in the market. Like other fruits amla, a rich source of Vitamin C produces an excellent relishing drink. 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 2nd 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 its own building as per FPO requirements. 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 SSI provisional registration Sanction of financial supports etc Installation of machinery and power connection Trial run and production : 01 month : 1-2 months : 2-5 months : 6-8 months : 01 month : 6 lakh bottles of 200 mL cap./annum : March 2009

5.0 5.1 Process of Manufacture

Technical

Aspects

Fruits like amla, grape, jamun, lime, phalsa can be used. Fully ripe sound fruits are selected. These are washed and juice/pulp extracted. Further process involves preparation of fruit syrup base, carbonation by post mix method, heat processing, cooling and packaging in 200 mL bottles. 5.2 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 utilising 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 Installed capacity Optimum capacity utilization Working days Manpower Utilities Motive Power Water 9.0 9.1 9.1.1 Land & Building Particulars Land 400 m 2 Built up area 250 m 2 Total cost of land and building Amount (Rs. lakh) 01.10 09.90 11.00 15 kWH 25 kL/day Financial Fixed Aspects Capital 6 lakh bottles /annum 1.7 lakh Litres 70% 300/annum 17

9.1.2 Machinery and Equipment Description Washing tank, fruit mill, hydraulic juice extractor, : steam jacketing kettles (3),boiler, carbonation unit, mixing tank, pasteurizer, crown corking machine, pH meter, weighing scales, labelling machine, bottle washing unit, refractometer, laboratory equipment. Erection & electrification of machinery & equipment : @10% cost Office furniture & fixtures Total 9.1.3 Pre-operative Expenses Consultancy fee, project report, deposits with electricity 01.00 (Rs. lakh) department etc 9.1.4 Total Fixed Capital (9.1.1+9.1.2+9.1.3) 9.2 9.2.1 Personnel Recurring expenses 33.00 (Rs. lakh) per annum : : Amount (Rs. lakh) 18.00

01.80 01.20 21.00

Designation Factory Manager Production supervisor Office Assistants Mechanic/ Technician Skilled workers Unskilled workers

No. 1 1 2 1 4 8

Salary month 12,000 08,000 06,000 05,000 04,000 03,500

Per Amount (Rs. lakh) 01.44 00.96 01.44 00.60 01.92 03.36 09.72

Perquisites @15 % Total 17

01.46 11.18

9.2.2 Raw Material including packaging materials Particulars Fruits Sugar Citric acid Bottles Crown corks Labels Chemicals Cartons (24 bottles cap.) Carbon dioxide gas Total 9.2.3 Utilities Particulars Power Water Coal Total 9.2.4 Other Contingent Expenses Particulars Repairs and maintenance @10% Consumables & spares, others Transport & travel Publicity, postage, telephone Insurance @1% Total 9.2.5 Total Recurring Expenditure (9.2.1 + 9.2.2 + 9.2.3 + 9.2.4) 9.3 Working Capital Recurring expenses for 3 months 16.40 (Rs. lakh) 65.50 (Rs. lakh) Amount (Rs. lakh) 01.98 00.58 00.45 00.80 00.31 04.12 Amount (Rs. lakh) 02.90 00.20 03.90 07.20 Qty (t) 40 14 0.25 6.05 lakh 6.05 lakh 6.00 lakh LS 25,000 -Rate/t (Rs.) 10,000 22,000 160,000 4/ each --LS 14 each -Amount (Rs. lakh) 04.00 03.08 00.40 24.20 02.88 03.00 01.10 03.50 00.84 43.00

9.4 Total Capital Investment Amount (Rs. lakh) Fixed capital (Refer 9.1.4) Working capital (Refer 9.3) Total 10.0 10.1 Cost of Production (per annum) FINANCIAL 33.00 16.40 49.40 ANALYSIS

Amount lakh) Recurring expenses (Refer 9.2.5) Depreciation on building @ 5% Depreciation on machinery @10% Depreciation on furniture @ 20% Interest on Capital Investment @ 12% Total 10.2 Sale Proceeds (Turnover) per year Item Qty Rate (Rs.) 11.00 3.50 Amount lakh) 66.00 21.00 87.00 65.50 00.45 01.88 00.24 05.93 74.00

(Rs.

(Rs.

1.Carbonated beverage in 200 600,000 mL bottles 2. Refund of empty bottles Total 10.3 Net Profit per year 600,000

= Sales Cost of production = 87.00 - 74.00 = Rs. 13 lakh 10.4 Net Profit Ratio Net profit = ------------------------Sales 13 = ------------------87 = 14.95 % x x 100

100

10.5 Rate of Return on Investment Net profit = ----------------------------Capital Investment 13 = ------------------------49.4 = 26.3% x x 100

100

10.6 Annual Fixed Cost Amount (Rs. Lakh) All depreciations Interest 40% of salary, wages, utility, contingency Insurance Total 10.7 Break even Point Annual Fixed Cost = ----------------------------------Annual Fixed Cost + Profit 17.61 = -------------------17.61 + 13 = 57.53% x x 100 02.57 05.93 08.80 00.31 17.61

100