INDIVIDUAL QUICK FREEZING OF FRUITS AND VEGETABLES

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1 INDIVIDUAL QUICK FREEZING OF FRUITS AND VEGETABLES 1. Introduction Frozen fruits and vegetables are the most common forms of processed fruits and vegetables preferred in the international market today. This is because the product is easy to use and available right round the year even during off seasons. Moreover, they are always available at a stable price. The product is hygienically prepared, packed transported and stored under refrigerated conditions till the use. Since almost every household has a refrigerator, storage is easy and terminal processing is minimal. The product is also accepted internationally because it is bacteria free without any contamination. 2. Market The major market outlets are the A class stores. The product also finds placement in self service counters and departmental stores. The product also has a good export potential. 3. Packaging Frozen fruits and vegetables are packed in polyethylene pouches in 500 grams and 1 kilogram capacity. They are stored frozen, transported frozen and sold to the consumer in the frozen state. 4. Production capacity The plant will be in operation for three shifts a day. The production capacity is estimated at 600 kilograms of raw material (cut fruits and vegetables) per hour. In all the plant yields 4000 metric tonnes of the product per annum. The time period required for achieving full capacity utilisation is one year. 5. Sales revenue With an ex-factory selling price at Rs per kilogram, the annual turnover is Rs.2000 lakhs on full capacity utilisation. 1

2 6. Production process outline. The fruits and vegetables received from the farms are stored directly in the cold room maintained at a temperature of + 10 degrees centigrade. They are then processed within 5 to 7 days of the receipt of material. The fruits and vegetables to be processed are taken to the processing section. They are washed, peeled, cubed, diced or cut into the desired shapes as may be by the various machinery in the preparatory section. From the preparatory section it is steamed, blanched in cold water and frozen in the freezer. The freezer has a temperature of minus 40 degrees centigrade. The time taken for freezing is 30 minutes. The frozen product emerges as a hard rock like mass and is immediately taken to the packing machine. On packing it is stored in a refrigerated state at minus 18 to minus 20 degrees centigrade. The product is transported cold and stored under refrigerated conditions till use. 7. Quality specifications A certificate of approval for production has to be obtained under the Fruit Products Order (FPO) It should be free from any fermented odour, coliforms, salmonella and streptococci bacteria. 8. Pollution control measures Not necessary as there are no pollutants or effluents. However, the peel and seeds of fruits processed have to be disposed off carefully failing which it could pollute the surrounding areas on fermentation, yielding a foul odour. 9. Energy conservation measures Common measures will do. 2

3 10. Land and construction cost for the proposed unit Land - 5 Rs lakhs per acre - Rs lakhs. Sl Description Sq. feet 1 Preparatory section Processing section Cold storage room Laboratory Administrative section Boiler house Refrigeration compressor area Raw material store Machinery spares store Toilet space First aid and canteen space Total Cost of construction Rs. 900 per square foot Total cost of civil works Rs lakhs Total cost of land and civil works Rs lakhs. 11. Costing of machinery and equipment Preparatory section machinery comprising washing machine, dicers, cubers, peelers etc. - Rs lakhs Processing machinery consisting of the following: a) Bulk hopper feeder to feed cut vegetables and fruits received from the preparatory section to the next unit - viz: the transport conveyer. b) Transport conveyer conveying the material from hopper to the steam tunnel. c) Steam tunnel for injection of steam to cook the cut pieces of fruits and vegetables. d) Belt conveyer to convey the material from the steam tunnel to the chilled blanching tank. e) Blanching tank with chilled water at 4 degrees centigrade in circulation. f) Dew water shaker to remove excess surface moisture adhering to the fruits and vegetables. g) Transport conveyer to convey the material from the vibratory shaker to the spiral freezer. 3

4 h) The spiral freezer - It has a spiral flow bed for freezing the fruits and vegetables at a temperature of minus 40 degrees centigrade in about 30 minutes. i) Flight conveyer - the unit that conveys the material from the freezer to the packing machine. j) Packing conveyer - the unit is used to collect the pouched material from the packing machine for final packing of the finished products. k) Cost of processing line - Rs lakhs l) Cost of packing line - Rs lakhs m) Cost of refrigeration unit - Rs lakhs n) Total cost of machinery - Rs lakhs o) Import 40% - Rs lakhs p) Grand total plant machinery - Rs lakhs 12. Project cost 1 Land Civil works Plant machinery Laboratory equipment Boiler and accessories Transport vehicle (2 LCV) Pollution control equipment Energy conservation equipment Cost of power connection Cost of electrification Erection and commissioning Cost of machinery spares Cost of office equipment Deposits if any Company formation expenses Gestation period expenses Sales tax registration expenses Initial advertisement and publicity Contingencies Working capital margin money Total

5 13. Working capital requirements per month a. Salaries and wages Sl Description No of persons Total salary / month (Rs. lakhs) 1 Managing Director General Manager (Technical) General Manager (Finance) General Manager (marketing) Production Manager Van driver Maintenance Supervisor Maintenance Engineers Quality Control Chemists Boiler Operators Refrigeration Mechanics Sales staff Skilled workers Unskilled workers Administrative staff Security staff Total b. Raw material requirement per month Sl Description Qty (kgs) Rate / kg (Rs) Value (Rs. lakhs) 1 Fruits 200, Vegetables 200, Total raw material 400, c. Packaging material requirement per month Sl Description Qty Rate / unit Rs) 1 Primary packaging material Polyethylene nos pouches Value (Rs. lakhs) Cartons and straps nos Total Total raw + packaging material = Rs lakhs 5

6 d. Utilities per month 1 Power Rs per unit Water Boiler fuel Ammonia refrigerant Total utilities e. Contingent expenses per month 1 Rent for processing shed Postage and stationery Telephones, fax etc Consumable stores Repairs and maintenance Local transports, loading and unloading Refrigerated outward transport Advertisement and 5% of sales Insurance Sales 1% of sales Miscellaneous 1% of sales Trade 2% of sales % Total contingent expenses f. Total working capital requirement per month 1 Salaries and wages Raw material and packaging material Utilities Contingent expenses Total

7 14. Means of finance 1 Total Project Cost Equity Debt Working capital margin money Financial analysis 1 Total recurring cost per year Depreciation on land and building Depreciation on machinery and vehicle Depreciation on furnaces Depreciation on moulds and fixtures Depreciation on office equipment Interest on long term 12% Interest on short term borrowings@ 12% Total cost of production Turnover per year Sl Item Qty Rate/unit (Rs) 1 Frozen fruits and vegetables Total Rs. lakhs 4000 MT Viability analysis Sl Description Value 1 Net profit before income tax (Rs. lakhs) Net profit ratio 13.4% 3 Internal rate of return 23.8% 4 Break even percentage 44% 5 Debt service coverage ratio

8 List of machinery suppliers for Individual Quick Freezing of Fruits and Vegetables 1. F.M.C. Hongkong Limited, 2, Bhuvaneshwari Housing Society, Pashan Road, Pune , Maharashtra. ; Tel: ; Fax: Frigoscandia Winner Food Process Systems Limited, Shreesh Chambers, 3rd Floor, 25 / 1, Yeshwant Niwas Road, Indore , Madhya Pradesh. ; Tel: ; Fax:

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