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ASSIGNMENT ON NEW PRODUCT DEVELOPMENT SUBMITTED TO ANUBHA VASHISHT SUBMITTED BY:- 1. PALLAV KUMAR (PG09-
ASSIGNMENT ON NEW
PRODUCT DEVELOPMENT
SUBMITTED TO ANUBHA VASHISHT
SUBMITTED BY:-
1.
PALLAV KUMAR (PG09-
071)
2.
RAJDEEP GHOSH (PG
09-081)
3.
SATAPHUL SAHA
CHOUDHURY (PG09-96)
4. SNEHADIP SINHA (PG
09 101)
5. UJJAL KR. JANA (PG
09-111)
6. UTTAM KR. PATRA (PG
09-112)
Index 1. Executive summary 2.Overview of the industry 3.Product marketing 4.Market information 5.Finanacial Policy
Index
1. Executive summary
2.Overview of the industry
3.Product marketing
4.Market information
5.Finanacial Policy
6.Production process
7.Operations
 
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
 
 
 
 
        Executive summary :       Freshly extracted sugarcane juice is a
        Executive summary :       Freshly extracted sugarcane juice is a
        Executive summary :       Freshly extracted sugarcane juice is a
        Executive summary :       Freshly extracted sugarcane juice is a
  Executive summary :  
 

Executive summary:

 
  Executive summary :  
 
 
 
  Freshly extracted sugarcane juice is a very popular drink in India because of its
 

Freshly extracted sugarcane juice is a very popular drink in India because of its delicate aroma,

 
  Freshly extracted sugarcane juice is a very popular drink in India because of its delicate
taste and low cost. It is a common practice in India to dispense the juice

taste and low cost. It is a common practice in India to dispense the juice fresh either as such or

taste and low cost. It is a common practice in India to dispense the juice fresh
with the addition of limejuice and/or fresh ginger extract in glasses. The major problem

with the addition of limejuice and/or fresh ginger extract in glasses. The major problem

with the addition of limejuice and/or fresh ginger extract in glasses. The major problem
encountered in this operation is the lack of hygiene resulting in contamination of the juice

encountered in this operation is the lack of hygiene resulting in contamination of the juice with

encountered in this operation is the lack of hygiene resulting in contamination of the juice with
the heavy load of micro-organisms which arises due to improper cleaning of the sugarcanes and

the heavy load of micro-organisms which arises due to improper cleaning of the sugarcanes and

the heavy load of micro-organisms which arises due to improper cleaning of the sugarcanes and
handling of the finished product. Raw sugarcane juice is carbohydrate rich, minerals (like iron,

handling of the finished product. Raw sugarcane juice is carbohydrate rich, minerals (like iron,

handling of the finished product. Raw sugarcane juice is carbohydrate rich, minerals (like iron,
magnesium, phosphorous, calcium), low organic acid (e.g. malic acid, succinic acid, acotinic acid) food and

magnesium, phosphorous, calcium), low organic acid (e.g. malic acid, succinic acid, acotinic acid) food and is therefore susceptible to the growth of yeasts, of spoilage bacteria and also of pathogenic bacteria. Such freshly crushed juice cannot be preserved even for a few hours since it

bacteria and also of pathogenic bacteria. Such freshly crushed juice cannot be preserved even for a
juice cannot be preserved even for a few hours since it is known to ferment very
juice cannot be preserved even for a few hours since it is known to ferment very
juice cannot be preserved even for a few hours since it is known to ferment very
juice cannot be preserved even for a few hours since it is known to ferment very
is known to ferment very quickly.  

is known to ferment very quickly.

 
is known to ferment very quickly.  
 
 
 
  Sugarcane juice industry is a business idea that deals is products. Our product is
 

Sugarcane juice industry is a business idea that deals is products. Our product is sugarcane juice

 
  Sugarcane juice industry is a business idea that deals is products. Our product is sugarcane
in tin pack or pet bottles. But the problem with this is that it cannot

in tin pack or pet bottles. But the problem with this is that it cannot be preserved for long time.

in tin pack or pet bottles. But the problem with this is that it cannot be
The methodology used in India is quite old and so people normally don’t go for

The methodology used in India is quite old and so people normally don’t go for this sector

The methodology used in India is quite old and so people normally don’t go for this
because of the risk of low self life. But increasing technology and research has made

because of the risk of low self life. But increasing technology and research has made it possible

because of the risk of low self life. But increasing technology and research has made it
and now in many of countries it’s produced on commercial basis and their sales are

and now in many of countries it’s produced on commercial basis and their sales are quite high

and now in many of countries it’s produced on commercial basis and their sales are quite
especially in Middle East countries. This juice is widely used in hot weather conditions.  

especially in Middle East countries. This juice is widely used in hot weather conditions.

 
especially in Middle East countries. This juice is widely used in hot weather conditions.  
 
 
 
  The supply of sugarcane is not a big problem. India has known as the
 

The supply of sugarcane is not a big problem. India has known as the original home of sugarcane

 
  The supply of sugarcane is not a big problem. India has known as the original
and second largest producer next to Brazil. Presently, India produces about 355 million tonnes of

and second largest producer next to Brazil. Presently, India produces about 355 million tonnes of

and second largest producer next to Brazil. Presently, India produces about 355 million tonnes of
sugarcane in an area of 4 million hectares. Of this, about 46% goes for the

sugarcane in an area of 4 million hectares. Of this, about 46% goes for the manufacture of while

sugarcane in an area of 4 million hectares. Of this, about 46% goes for the manufacture
crystal sugar and around 42% for gur/khandsari production. The remaining quantity is available

crystal sugar and around 42% for gur/khandsari production. The remaining quantity is available

crystal sugar and around 42% for gur/khandsari production. The remaining quantity is available
for the manufacture of sugarcane juice.  

for the manufacture of sugarcane juice.

 
for the manufacture of sugarcane juice.  
 
 
 
  Our initial product to start 250 ml sugarcane juice paper pack, 500 ml paper
 

Our initial product to start 250 ml sugarcane juice paper pack, 500 ml paper pack and1 ltr pvc.

 
  Our initial product to start 250 ml sugarcane juice paper pack, 500 ml paper pack
The sugarcane juice preserved and packed has a good storage life and is available during

The sugarcane juice preserved and packed has a good storage life and is available during off-

The sugarcane juice preserved and packed has a good storage life and is available during off-
season also. Future prospects are addition in the product line and setting out executive

season also. Future prospects are addition in the product line and setting out executive

season also. Future prospects are addition in the product line and setting out executive
distribution channels, and planned are for KSA market in future.  

distribution channels, and planned are for KSA market in future.

 
distribution channels, and planned are for KSA market in future.  
 
 
 
  Overview of the industry :  
 

Overview of the industry:

 
  Overview of the industry :  
 
 
 
  Opportunity Rationale:  
 

Opportunity Rationale:

 
  Opportunity Rationale:  
Our business is the part of fruit and vegetable industry in India. The fruit juice

Our business is the part of fruit and vegetable industry in India. The fruit juice industry coupled

 
Our business is the part of fruit and vegetable industry in India. The fruit juice industry
with beverage industry is considered to be one of the largest industrial sectors in India.

with beverage industry is considered to be one of the largest industrial sectors in India. It is to

with beverage industry is considered to be one of the largest industrial sectors in India. It
growing at a robust rate of 27%. Modernization of this industry, in consonance with the

growing at a robust rate of 27%. Modernization of this industry, in consonance with the change

growing at a robust rate of 27%. Modernization of this industry, in consonance with the change
in urban life style, massive shift of rural population to the urban areas, growth in

in urban life style, massive shift of rural population to the urban areas, growth in population, etc.,

in urban life style, massive shift of rural population to the urban areas, growth in population,
predict a growing potential for instant solutions in fruit juice segment of the beverage industry.

predict a growing potential for instant solutions in fruit juice segment of the beverage industry.

predict a growing potential for instant solutions in fruit juice segment of the beverage industry.
Agriculture is the largest income and employment generating sector of Indian economy. About

Agriculture is the largest income and employment generating sector of Indian economy. About

Agriculture is the largest income and employment generating sector of Indian economy. About
 
 
 
industry. Agriculture is the largest income and employment generating sector of Indian economy. About    
industry. Agriculture is the largest income and employment generating sector of Indian economy. About    
industry. Agriculture is the largest income and employment generating sector of Indian economy. About    
industry. Agriculture is the largest income and employment generating sector of Indian economy. About    
 
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
 
1/3 rd population of the country resides in rural areas and directly or indirectly depend
1/3 rd population of the country resides in rural areas and directly or indirectly depend on
agriculture for their livelihood. The sector provides raw materials to the industrial sector and is
an important source of demand for its product. The past experience shows that period of
high/low agricultural growth have generally coincide with period of robust of poor performance
of the national economy. Currently juice industries are high profit because of the demand for the
products and the climate conditions. However there are areas which has not been catered before
such as sugarcane juice this is because generally people perceive that its cannot be preserved for
long time so they don’t go for the use of technology and research for catering and taking benefits
from this wrong perception.
Traditionally in India and generally all over the world people prefer to use natural drinks rather
than carbonated soft drinks and this perception is gaining more currently day by day which also
adds to the advantage of the fruit juice industry. Common people especially young generation is
included to have ready to consume drinks; in addition hotels, hospitals are also expanding day by
day where juices could be marketed successfully. Moreover the global trend of preferring fresh
fruits and juices also marks possibilities of growth in this sector. Furthermore, the growing
exports volume and withdrawal of CED (customer and excise duty) on fruit juices (produced
locally) could further supplement significant growth in the fruit juice industry.
DATA-Top sugarcane producer:
Production
Country
(Tonnes)
Brazil
514,079,729
India
355,520,000
People's Republic of China
106,316,000
Thailand
64,365,682
Pakistan
54,752,000
Mexico 50,680,000 Colombia 40,000,000 Australia 36,000,000 United States 27,750,600 Philippines 25,300,000
Mexico
50,680,000
Colombia
40,000,000
Australia
36,000,000
United States
27,750,600
Philippines
25,300,000
World
1,557,664,978
Source: Food And Agricultural Organization of United Nations: Economic And Social
Department: The Statistical Division
In India, the states of Uttar Pradesh (38.57 %), Maharashtra (17.76 %) and Karnataka (12.20 %)
lead the nation in sugarcane production.
Our company Fiscon Agro Pvt. Ltd. is going to introduce a new fruit juice -----------“Ganna
Cool” which is made off Ganna Ras. It is purely natural and health drink and it will be launched
at national level within 45 days. After this launch we planned to offer a public issue for further
expansion.
Idea Generation:
Indians are fond of Ganna Juice irrespective of the age barrier. As sugarcane juice has various
benefits to human body but unfortunately in India there is no packaged Ganna juice. As a result
they are bound to drink unhygienic juice supplied by the local street vendor and they are not
getting the benefits of ganna juice. From our market study we came to know that people want
hygienic Ganna Juice and for that they are ready to pay more.
Idea screening:
At the initial stage we thought that we will offer Ganna Cool with different flavour like lemon,
ginger, elichi, pudina and kesar. But after detailed research we found that elaichi, ginger and
kesar are not at all adding any value to the ganna juice. So we drop
kesar are not at all adding any value to the ganna juice. So we drop the idea of offering elaichi,
ginger and kesar flavour. We decided to go with lemon and pudina flavour.
Product and its applications
Basis and presumption
a) The unit proposes to work at least 200 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.
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
Pollution control
The bagasse from the cane should be disposed off quickly or dried at a distant place since it
attracts flies and ferments leading to foul odour.
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.
Production capacity
Quantity: 6 lakh bottles/annum or 3,000 bottles/day
Value: Rs. 72 lakh
Installed capacity: 8 lakh bottles/annum
Working days: 200/annum
Optimum capacity utilization: 70%
Manpower: 22
Utilities Motive Power: 20 kWH Water: 10 kL/day Fuel: Dry bagasse can also be used
Utilities
Motive Power: 20 kWH
Water: 10 kL/day
Fuel: Dry bagasse can also be used
Target Customer:
Our potential customer will be every kind of individuals. However we will segment our market
on the basis of their priority and attributes towards hygienic products. Initially to minimize our
risk we will cater on the metros in India then depending upon the demand and our finance
capacity we will expand our production and distribution to other cities of India. Our customer
will be:
 Students at every level from school to universities.
 Employees who works entire day.
 Households and passengers.
In summer session every kind of people with no age limit use this juice because of unhygienic
products most of the people avoid this. We will specially target those kinds of people.
Product characteristics:
• Attributes
• Hygienically extracted
• Rich in organic salts
• Contains 15% natural sugar
• Low glycemic index
• No artificial sweetener
• Rich in carbohydrates, vitamins and roughage
• Low calorie juice with medicinal properties.
• Available in multiple flavors – Mint, Ginger, Chat Masala and Lime
• Benefits
• Natural thirst quencher
• Instant rejuvenation
• Innocuous to health
• Prevents cold n flu
• Cures jaundice
• Cures eye disorders
• Prevents cancer
Our competitors
Manufacturers and producers of:
– Aerated drinks – Branded and unbranded fruit juices – Fruit based milk drinks –
– Aerated drinks
– Branded and unbranded fruit juices
– Fruit based milk drinks
– Natural mineral water
– Fruit shakes
– Branded and unbranded coconut water
Segmentation
Geographic Segmentation
– Rural areas
– Urban areas
– Densely populated regions
– Regions with predominantly hot and arid climates
Demographic Segmentation
– Individuals with age 3 years and above.
– Individuals across all income groups
– Working and non-working individuals
– Students
– Institutions and offices.
– Restaurants & hotels
– Retail shops
Psychographic Segmentation
– Health conscious consumers
– Consumers who have inclination towards nature and natural products
– Quality conscious consumers
– Consumers who have diverse tastes and seek variety
Non-users and potential users
Marketing Mix:
Promotion
– Constantly in line with the USP of quality, hygiene and health
– Advertisements in television and radio would also convey the brand promise by
highlighting the USP.
– Sponsorship of TV and radio telecasts to aid in brand building and creating top of
mind recall.
– Use of trade promotion to an extent.
Place
– Use attractive POS displays at all retail outlets
– Ensure availability to keep up with the brand promise of quality service
Product – Pure and tasty product packaged in attractive eco-friendly packages which are convenient to
Product
– Pure and tasty product packaged in attractive eco-friendly packages which are
convenient to use.
– Packages would use attractive color schemes and would highlight the brand name
and the logo with all mandatory information about its nutritive value.
– Different color schemes to be used for different variants mentioned earlier.
Price
– Each unit would cost the customer between Rs.8 to Rs.10 depending on the flavor
chosen and the local taxes of the corresponding state.
– Price should be clearly printed on the package.
And Finally…
• Ganna-Cool and all its employees shall align themselves with the brand promise and
strive constantly to deliver it in the best possible way at each point of consumer contact.
• Every touch point shall deliver the promise of the brand in the best possible manner.
Further improvements shall be made on the basis of customer feedback, complaints and market
research findings.
Unique selling proposition (usp):
The proposition must be so strong that it can move the mass millions, i.e., pull over new
customers to your product. Each advertisement must make a proposition to the consumer. Not
just words, not just show-window advertising. Each advertisement must say to each reader:
“Quality, hygiene & health”
Positioning statement
For every individual, who wants a 100% natural product that offers rejuvenation and freshness,
the Cane-o-cool is a packaged drink that provides energy and refreshment at affordable prices,
best quality and value for your money.
Company Impact:
It is quite a new idea which has not been yet commercialized because of the lengthy and risky
procedures of preserving this juice. This juice is need not to be marketed so much because it is a
new thing which people will try and love a lot. Simply we can place it on college cafeteria, office
cafeteria, grocery shops, the only thing we must do is to ensure its shelf life and long
preservation time.
Company strategy:
In first year our company, will market in the metros only. Then looking our sales history we will
expand our business opportunities in other cities of India.
Product marketing: The marketing and promotional activities of fruit juice and related commodity groups are
Product marketing:
The marketing and promotional activities of fruit juice and related commodity groups are crucial
in increasing the demand for fruit juices. This activates includes but not limited to promotion
advertising, and new product development and packaging innovation .marketers adopt their
strategies in accordance with specified customers wants and needs. They also create product
image and influence consumer purchases. Often consumer demand for process food like juices
are difficult to categorise. Consumer tends to purchase products that cover a broad spectrum of
price and value combination. Servicing the educated and health conscious consumer who reside
in Ahmadabad and same type of consumer in Kolkata and other metros is a complex role which
marketers strive to master .in this type of areas people use pure fruit juice at least once a day.
This market could be catered through intensive marketing distribution channel and promotion
campaign on TV or in other sophisticated area.
With technological advancement marketing of fruit juice improved likes other
food items. Recent innovations appearing on super market self’s are single serving aseptically
packaged fruit juice and fruit juice.
Marketing infrastructure which includes refrigerated facilities at retail and wholesale
markets is correlated to the consumer demand for high quality produce.
It is important the USP of the product should be sophisticated and healthy
packaging, less use of preservative and clearly mentioning of purity of the juice.
For a fruit juice business the advertising budgets is 5% of total revenue. But for a
small and medium scale company it may be higher. The medium for advertisement are billboard,
TV, radio, newspaper, magazines and internet.
Distribution channel for fruit juice:-
The distribution channel should be intensive using all the modes of
distribution (hybrid channel).
Road side stand: - Road side stands in the peak season of the fruit will be helpful for the juice
producer to develop the brand awareness.
Advantage:-
1. It will help in managing time more efficiently between factory and stand operations.
2. It reduces the intermediary like wholesalers and helps retailer to increase their profit
margin which in turns helps the producer to earn more revenue.
Restaurant and hotels:-
Selling directly to the hotels and Restaurant reduce middleman which helps in increasing
profit margin. For a fruit juice hotels and Restaurant are working as value adding partners, they
are willing to provide high quality service to the customer by providing proper refrigeration to
that fruit juice.
Advantage:-
1. Potentially higher net profit. 2. More precise production planning. 3. A higher wholesale selling
1. Potentially higher net profit.
2. More precise production planning.
3. A higher wholesale selling price.
Product marketing plan and budget expenditures:-
Marketing and promotion of a new fruit juice will be critical. Before going into
marketing and promotion we need to take into account the following points:-
 Fruit juice in smart need packaging with clearly written specification (i.e, 100%pure etc)
attracts consumer in first light. Therefore if the juices is visibly place d on a separated
stand in a knit & clean shop. It is likely to Attract the consumer there will be no
requirement of pre –sale –buying.
 Well balanced quality & price combination will be helpful to attract to the consumer
 Juice stand are good promotional medium when place in a restaurant of good reputation
in terms of cleanliness & sophistication (i.e., Macdonald & Pizza hut)
Advertisement/ Promotional Activities and Demand Creation:
The marketing and promotional activities of fruit juice and related commodity groups are crucial
in increasing the demand for fruit juice. These activities include, but are not limited to
promotion, advertisement, new product development, and packaging innovations. We have to
adopt marketing strategies in accordance with the specified consumer wants and needs. We also
have to create product image and influence customer purchase. Servicing the educated,
nutritionally aware consumer who dwells in the metros is a complex role. In these types of areas
people use to have a pure fruit juice once in a day, with an imported or prime local fruit juice. A
market can be created through intensive marketing and promotion campaign on television and
nation based news papers.
Marketing infrastructure, which includes refrigerated transportation facilities an composition of
retail and wholesale markets, is correlated to the consumer demand. Equipment that transport
from the field to retailers need cooling machines to ensure the product quality delivered to
customers.
We have to also differentiate our product by means of sophistication and healthy packaging and
by less use of preservative.
Television, radio, F.M channels, newspapers could be used to promote our product.
Pricing Strategy: Our main motto is to supply a healthy soft drink to each and
Pricing Strategy:
Our main motto is to supply a healthy soft drink to each and everybody in a reasonable price and
earn as much as possible profit from market. So we set a price which is not overcharged also can
give the cream from the market. We will maintain a balance between price and quality. Our 250
ml. pack will be priced Rs.15, 500 ml. packs will be priced Rs.28 and 1 ltr. Pack will be priced
Rs.52.
Our financial planners calculate that initially 1 ml. of juice cost to Re.0.032 and afterwards it will
be 0.028 paisa per ml. So in future we can lower our price to compete with other producers.
Business opportunity
This is a business plan of a partnership firm in the name of sugarcane juice. The plan is to
process and market the precious sugarcane juice. First time in India, juice will be preserved in tin
pack keeping them as fresh as at time of extraction. Till now market deals in fresh fruit juices
which can be easily preserved however this idea has not been catered yet. Canned sugarcane
juice will be sweet as fresh fruit. Firm plans to start a processing plan near. Processed and
packed finished fruits juice will be temperature resistant and thus able to be transported to
market for sale initially. Firm will hold a warehouse, production plant and office in Kolkata.
Company impact
This is quit a new idea which has not been yet commercialized because of the lengthy and risky
procedures of preserving this juice. This juice is widely used because of its sweet taste and being
a solution to different health problems. The cost of production and raw material is not so much
high while sales may be expected to be high because of its greater utilization .it needs not to be
marketed so much because it’s a new thing which people will try and love a lot. Simply we can
place it on universities cafeterias, government franchises and grocery shops, the only thing we
must do is to ensure its shelf life and long preservation time.
Company strategy
In first year, our company, will market in Lahore in the three segments described in the report.
Kolkata will be the sole market for first year. Then looking through our sales history we will
expand our business opportunities to other big cities of India. More products that will be
processed in same way and will be included in product line after making a good repute in the
industry. Initially our company production line is based on semi- automatic techniques but hi-
tech extension is planned in future.
Benefits matrix Customer pain points Benefits Already developed distribution system we only Easy distribution need
Benefits matrix
Customer pain points
Benefits
Already developed distribution system we only
Easy distribution
need to make a well repute to launch and
familiarize our products
Availability throughout the year
No shut down if season is off
Easily available sugarcane in large quantity
Low cost of production
Sector & industry analysis:
Agriculture sector highly depends on the weather circumstances. God has gifted India with
several varieties of fruits, one of them is sugarcane. The hot tropical climate of the country is
suitable for cane cultivation. Over the past 65 years the yield in tons per hectare has more than
doubled. Most cane producing countries in the world.
STATE-WISE AREA, PRODUCTION AND YIELD OF SUGARCANE (CANE)
%
STATE
%
OF
COVERAGE
AREA
PRODUCTION
%
OF
TOTAL
YIELD
TOTAL
UNDER
(M.HECTS)
(M.TONNES)
PRODUCTION
(KGS/HECT)
AREA
IRRIGATION
(1995-96)
(1)
(2)
(3)
(4)
(5)
(6)
(12)
ANDHRA
0.19
4.8
13.73
5
72263
95
PRADESH
ASSAM
0.03
0.8
1.29
0.5
43000
-
BIHAR
0.11
2.8
5.04
1.8
45818
22.4
GUJARAT
0.17
4.3
11.84
4.3
69647
100
HARYANA
0.14
3.5
7.55
2.7
53929
97.2
KARNATAKA
0.31
7.8
28.33
10.3
91387
100
MADHYA
0.06
1.5
2.11
0.8
35167
97.3
PRADESH
MAHARASHTRA
0.46
11.6
38.18
13.8
83000
100
ORISSA
0.02
0.5
1.14
0.4
57000
100
PUNJAB
0.13
3.3
7.33
2.7
56385
94.9
RAJASTHAN
0.02
0.5
1.16
0.4
58000
96.4
TAMIL NADU 0.32 8.1 35.68 12.9 111500 100 UTTAR 1.96 49.4 119.97 43.4 61209 51.4
TAMIL NADU
0.32
8.1
35.68
12.9
111500
100
UTTAR
1.96
49.4
119.97
43.4
61209
51.4
PRADESH
WEST BENGAL
0.03
0.8
1.83
0.7
61000
70.9
OTHERS
0.02
0.5
1.07
0.4
-
-
ALL-INDIA
3.97
100
276.25
100
69647
88.5
Sub sector information:
Fruit juice Industry:
Product which comes under fruit juice Industry are: carbonated drinks, fruit juices, squashes,
syrup, powder drinks .The fruit juice Industry reported sales of 8.52 billion Rupees in year 2005
and juices growing at a combined annual growth rate of 27%.
Fruit juice Industry-Potential Barriers
 The packaging material, such as glass bottles are inconvenient and expensive.
 Most consumer continue to show preferences for fresh foods
 Low income coupled with erosion in purchasing power.
 High cost of processed food due to high input, processing&packaging costs.
Tax structure- fruit juice industry:-
Duties and taxes are two types in juice industry namely import duty and sales tax. Import
duty on machinery and equipment vary from 5 to 25%.
Government policy direction:-
In beverage segment govt. has exempted local fruit juice industry from custom &
excise duty to give boost to the sector.
Quality control issues:-
Govt. has laid down the certain regulation includes registration of fruit product with India
standard quality control authority (PSQCA) and carrying a safety logo on the package.
Market information Market potential:- Install capacity of fruit juices in India is around 4 lacs
Market information
Market potential:-
Install capacity of fruit juices in India is around 4 lacs mt. As provided in the EAC 2003
report, where as the demand for the juice have grown at 27% in the last 5 years. India’s
population for the year 2005-06 is estimated around 153.45 million with the population growth
rate of 1.9% per annum. If we simply work out the total fruit juice consumption on population,
we can safely observe that juice consumption will definitely increase. Moreover, current
developments in the local and global economic scenarios also add to the constructive growth in
all sectors of the country. The improvement in economic affairs of India over the last few years,
govt. positive measures towards expansion of the industrial sectors revision of the duty ,
structures and exemption from excise duty(specially for fruit juices), etc, are factors which are
likely to further reinforce the development of the industrial sectors .
Opportunities and threat analysis:-
Opportunities:-
 Healthy organic and natural drinks oriented global and local culture.
 Limited option in locally produced in real fruit juices.
 High export potential.
 With good pre harvest planning, which is around 50% of the total production, could
be
turned into potential business opportunity.
 Reduction in excise and import duties on food processing machinery.
Threats:-
 Unavailability of adequate industries statistics.
 Single Product Company.
 High processing and packaging cost.
 High cost of background integration. (Availability of raw materials)
 Threat from other fruit juice exporting countries (India and china who already in foreign
market).
 Price sensitivity and low consciousness towards quality amongst consumers.
 Wide availability of substandard (with token juice) substitutes.
 Heavy advertising from existing giant players.
 High cost to meet international quality standards.
Finanacial Policy: In case of investment we decided to invest 60% of initial capital by
Finanacial Policy:
In
case of investment we decided to invest 60% of initial capital by the promoters and promoters
are able and ready to invest the capital. The rest amount will be financed by bank loan, loan from
financial institution and the working capital requirement will be financed by bank overdraft.
Our selling policy is on 7 days of credit to only wholesaler and super marketers. And we will
purchase the raw materials and other necessary things from suppliers on a credit of 15 days. It
helps us to maintain the minimum working capital and it will also reduce our cost of capital.
Initially we take the factory premises on rent to reduce our capital investment.
In
the beginning stage our leverage ratio is low otherwise it will be risky. But afterwards we will
issue IPO and would also try to finance the future projects through bank loans and loans from
non banking financial institute. This kind of policy can give us more profits.
Production process:
Production of sugarcane juice is a standard process and it depends on type of technology, quality
of sugarcane, scale of operations and availability of investment financial resources. Basically,
preparation process of sugarcane juice involves the following steps:
 Washing sugarcane by water
 Crashing
 Filtration
 Pasteurization
 Added preservative
 Bottling
A
method is provided for extracting and processing sugar cane juice from sugar cane sticks to
produce a natural juice product. Fresh, juicy and fully mature sugarcane, which is free from
insect and fungal attack or any other blemish, is taken for extracting the juice.
The method includes the steps of: providing sugar cane sticks having a high sucrose level;
Sugarcanes were cleaned with water and the outer skin scraped manually with a knife; extracting
sugar cane juice from the sugar cane sticks using a roller mill apparatus; The spent canes were
repeatedly passed through the crusher; flocculating the sugar cane juice with a mixture of water
and at least one natural flocculate product to aid removal of microscopic particles which would
otherwise cause the juice to be turbid (cloudy) and which would be difficult or impossible to
remove by filtration alone; filtering the extracted sugar cane juice through a screen filter;
stabilizing the pH at 7 of the; evaporating the sugar cane juice to form a sugar cane juice
concentrate and extracting the sugar cane juice concentrate from the evaporator. Concentrate sugarcane juice then
concentrate and extracting the sugar cane juice concentrate from the evaporator. Concentrate
sugarcane juice then sterilized for 10 min at 80° in a stainless steel vessel to inactivate enzymes
and living organisms; scum was ladled off and 125 p.p.m. Potassium Metabisulfite (K2S2O5)
was added while the juice was still hot (60°); the juice was then transferred to pre sterilized
bottles; these were corked and kept 10-15 min at 80° before storage at room temperature. The
process should be carried out under hygienic conditions. Sodium Benzoate 125 ppm is added as
preservative. The bottled juice can be stored without any loss in the quality and flavour for six
months at room temperature. The bottles and crown cork closures should conform to ISI
standards.
Addition of 100 p.p.m. Bactrinol-100 (bromonitropropanediol) before bottling slightly
improved keeping quality (according to sucrose content). Pre-treatment with activated carbon
improved colour.
Addition of lemon, mint and ginger (used at a specific concentration range of 0.1-0.4% by wt.)
essences to expressed juice instead of co-crushing gave a poorer product.
At intervals of 15 days the juice was analysed for Brix, sucrose (hence purity), pH (pH-7),
conductivity and titratable acidity, and assessed organoleptically for palatability on a scale
of 1-4; microbiological analysis was also performed. The overall cost of a 200-ml bottle of juice
(which could be sold for Rs. 2.50) is calculated to be Rs. 1.50 for small-scale and Rs. 1.00-1.10
for automated large-scale production. Consumer acceptability of the preserved juice was
evaluated and found to be 98 per cent.
Packing:
The juice will be then packed in the quantities demanded by the market. Consumer packs as we
have proposed for this pre-feasibility will be in units of 250 ml and 500 ml tetra packs and 1
litter pet bottle.
Storage:
Products will be stored in cool dry store before distribution.
Other raw material:
The ratio and utilization of other raw material depends on what percentage of pure juice the unit
is going to produce; however, following are the main ingredients which will be required for the
juice production proposed for this pre-feasibility:
 Treated water
 sugarcane
 Sugar
 Fruit flavour
 Preservative
Production process: Fruit juice production process involved in fruit juice manufacturing depending on what type
Production process:
Fruit juice production process involved in fruit juice manufacturing depending on what type of
the juice the unit is going to make. For the purpose of this –feasibility, we propose the 4%
token juice drink of sugarcane juice.
Fruit juice- Production process flow:
 Boiling of fruit pulp
 Pulp storage in tank
 Sugar hopper
 Pulp and ingredients mixing
 Syrup storage in tank
 Juice preparation
 Juice storage tank
 Filling and packaging
 Cooling and storage
In the following pages the process flowchart and brief description of the various processes
involved in fruit juice production is outlined.
Operations
Organizational structure
A kamad industry is a organization that will be legally formed as partnership firm. The
partners will be Rajdeep, Uttam, Ujjal, Sataphul, Snehadeep. Each partner will contribute
25% as initial investment in business. Land and building will be initially taken on rent.
4 important departments will be there:
Purchasing and logistics
This department will be responsible for all operating material purchases at best possible rates and
delivering at the appropriate time ,use of JUST IN TIME inventory.
Production and financial operations
This department will be responsible for quality reduction process .he will also be responsible for
financial records and accounting. Mr. Sataphul needs the following staff at the plant in the
process Process workers.
Marketing Marketing is responsible to design promotional campaigns and do art work for advertisement. Their
Marketing
Marketing is responsible to design promotional campaigns and do art work for advertisement.
Their main task is to work in celebration with sales department to create demand opportunities
and find out new market segments.
Warehouse management and sales
A
separate will be hired which will be responsible for managing finished good inventory in
Project position for the future
Because this potential areas not been catered before so it will give us a new and distinctive name
in
the market and similarly we can extent our product line to other existing products once the
goodwill and reputation is build in the market. Although optimum level of benefit of these
natural resources as yet to be achieved, the volume of production is going every year as the area
under cultivation has been increased by manifold. The ever going demand Indian sugarcane juice
in
summer session suggest that there is a need to further increase productivity, introduction of
new varieties of fruit juice to maintain affordable price at home and to get exportable surplus.
Supply of sugarcane is not a big problem because there are lots of areas in India which are the
largest producer of sugarcane, the only problem we may face ensuring that shelf life
Of juice is maintained and a distinctive market position is build in customers eye.