PRE-FEASIBILITY STUDY

FROZEN GREEN PEAS MANUFACTURING UNIT

1 PURPOSE OF THE DOCUMENT

The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs in project identification for investment. The project pre-feasibility may form the basis of an important investment decision and in order to serve this objective, the document/study covers various aspects of project concept development, start-up, production, marketing, finance and business management. The document also provides sectorial information, brief on government policies and international scenario, which have some bearing on the project itself. The purpose of this document is to facilitate potential investors in frozen green peas manufacturing by providing them a macro as well as a micro view of processed vegetable business with the hope that such information as provided herein will aid the potential investors in crucial investment decisions. The need to come up with pre-feasibility reports for undocumented or minimally documented sectors attains greater imminence as the research that precedes such reports reveal certain thumbs of rules; best practices developed by existing enterprises by trial and error, and certain industrial norms that become a guiding source regarding various aspects of business set-up and its successful management. This particular Pre-feasibility is regarding Frozen Green Peas Manufacturing Unit which comes under the Processed vegetable Sector. Before studying the whole document one must consider following critical aspects, which forms basis of any Investment decision. The another main purpose of the study is to understand the project as I am planning for the same after completing my M.B.A.

2
SWOT ANALYSIS

CRUCIAL FACTORS

Before making the decision, whether to invest in the Frozen Green Peas Manufacturing or not, one should carefully analyze the associated risk factors. A SWOT analysis can help in analyzing these factors, which can play important role in making the decision

STRENGTH
Increased shelf life of green peas. Totally automated plant and hence require the involvement of less local labour. Availability of Cheaper Labour. Tariff cuts under Trade Agreements are anticipated which may result in increase in the Export Market of the frozen green peas. The life style of the people is improving and going to be changed and also the demand is bound to register a considerable boost. Peas can be stored at lower price during the its harvesting period and can be sold at much higher price during the off seasons. Availability of the raw material in the form of fresh green peas

WEAKNESSES
Strict controls over the Labour efficiency need to be observed to reduce the Waste Production at the minimum level. Expected loss at the initial stages of the operation as a result of Sales return from the distributors. In -experienced Technical Staff as compared to the Units currently in operation. Desired temperature should be maintained continuously in the frozen room.

OPPORTUNITIES
Changes in the current eating habits of the People. Almost frozen green peas comprise of un-branded market except one or two which can be attracted through Heavy marketing Campaign. Fast moving world i.e quick usage of the frozen peas as it saves a lot of time. A large number of people which are not brand loyal can be attracted through heavy marketing campaign. Low per capita consumption of peas in overseas market is a strong indication of future demand.

THREATS
Monopoly of some limited known brands currently in the business of frozen green peas manufacturing. Imbalanced prices of green peas. Quality of the green peas and process of processing need to be considered very closely as the people are more directed towards health and safety issues. High promotional activity by the competitors and increased competition. Chances of price cut from the existing players of the green peas manufacturer manufacturers to keep the new product out of market.

Key Success Factors

Frozen green peas manufacturing is the process that involves the use of Fresh green peas, podding the peas, blunching, cooling, and then initially quick freezing. After passing through different manufacturing processes it transforms the green peas into frozen green peas. One of the key success factors for the success of this proposed project is to control and carefully monitor the entire production process as it involves the high waste production in the form over boiling during the blunching process or crushing of peas during the podding.

Another important aspect of this proposed feasibility is the marketing and promotion of the frozen green peas in the local as well as Foreign market. This involves the dedication and hard work from the marketing personnels to supervise the work of Wall Pasting, Banner affixing and a detailed advertising on the media along with the use of other marketing techniques such as Display Stands, Posters and use of Mobiles. The current frozen green peas market is led by safal and vadilal and some un branded players. Entering into the market needs heavy investment on the marketing campaign of the product in order to capture the share. Moreover unbranded market can also be attracted through use of heavy marketing campaign. There are many units existing which are in the business of frozen green peas manufacturing but still they are not successful in catering the demand. So there is a potential for new entrepreneurs to enter the market. Key success factors will be: Waste Production should be kept at minimum and peas processing process need to be monitored very carefully. Advance Orders for sale can ensure the success of the Business. Strong controls on the Purchase Price of Raw material need to be observed as it is evident that , supply of green peas is not stable throughout the year as a result of which there is huge variation in the prices of the green peas. It is therefore recommended to estimate the requirement of green peas for whole year and this should be contracted for in advance with the suppliers so as to secure from the drastic changes in the prices of green peas. Quality maintenance will play an important role as it is evident from the behaviour of the General consumers that they are more specific towards health issues than ever before. Cost Accounting system should be strengthened so as to monitor the entire process and determine the reasons for major variances in the process such as material, Labour and factory overhead variances

3 PROJECT PROFILE
Opportunity Rationale
With the advent of globalization, Asian eating habits are changing to emulate those of the west. This means that consumption of Western style frozen foods is on the rise. Due to this reason the potential market size of processed products is increasing at an exponential growth rate. This is also evident from the entry of world famous Mccain entering India, vadilal etc. Along with These companys there are large numbers of local players, which also deal in similar kinds of processed vegetable business. There is a huge business opportunity in this area of the processed vegetable and particularly in green peas.

Project Brief
This particular Pre-feasibility is regarding Frozen Green Peas Manufacturing Unit which comes under the Vegetable Processing Sector. The objective of the Pre-feasibility study is primarily to provide an overview about the green peas processing business. The proposed Pre-feasibility defines the criteria on which the investment decision is based. This document covers various aspects of green peas processing business concept development, Start-up, Production, Marketing, Finance and Business Management. Origin Ethiopia Latest production 35.17lakh tonnes Main Varieties Jawahar matar2,3,4,5,jawahar peas83,p88

Storage condition Temprature Relative humidity packing Storage period Freezing point Sensibility To FRESH 0 0c 95% 3-7 days -0.60c FROZEN -230c to -180c Gas tight 1 year +

High temprature and High humidity

Growing Belts: Karnataka (Belgaum,Banglore,Dharwad,Kolar) Madhya pradesh (ujjain,Durg) Rajasthan (jaipur,jodhpur,udaipur) West Bengal (Nadia,Hoogly,24 parganas) Punjab (Jalandhar,Amritsar,Hoshyarpur) Haryana (sonepat,Jhajjar,Rohtak,Karnal,Panipat) Assam (Darrang,Kamrup,Nagon) Himachal pradesh, Bihar and Orissa

Market Entry Timing

Various Products and Services have high dependence on their commercialization timing and delivery to the Customers but the green peas processing unit can be started during the months of September because of the easy availability and cheap prices of raw material during the winters. The plant can be started at anytime but in order to take the advantage of price it is better to start the plant during the harversting seasons of green peas which is shown in the later part of the project.

Proposed Location
The said project can be started in any industrial area. It is recommended to establish the project in an area where raw material is easily available. It may have any Industrial Area. The location of this proposed Pre-feasibility recommended near Ahmedabad Gujarat.The plant can also be set up near the farms in order to avoid the transportation cost.We are going to set up the plant near our farms.

Project Capacity and Rationale

Selection of Project Size is really critical. It is decided that the proposed pre-feasibility will be based upon the finished processed and frozen green peas Production Capacity of 500-1000kg per hour. However this particular pre-feasibility study is based on 500-1000kg per hour which is the medium viable size for a processing unit . The project will be working for ten hours on daily basis.

MARKET INFORMATION ABOUT GREEN PEAS

India is a green peas producing country producing around 4000000 MT yet it has very limited adequate storage and processing facilities. Due to the lack of adequate storage facilities a substantial proportion of production is wasted. The combination of inadequate storage facilities and an under-developed processing industry leads to volatility in prices as not all excess production can be stored or processed for consumption during the Off-season. The following analysis will illustrate the current state of the green peas production in India along with the potential that exists in both farming and processing of green peas.

Indian Green Peas Production

Green Peas is grown in India on about 370000 HA distributed over 11 different agro-ecological zones. About 40-50% of the productiion is in the uttar pradesh followed by jharkhand,Madhya pradesh,and also other parts of north and south India. There is only one season of Green peas cultivation i.e winter season. About30% of above production quantity is wasted against post harvest loses primarily due to improper handling and lack of proper cold storage facilities. Green peas are normally stored at temperature negative 18-230 Celsius mainly for storage purpose. These temperatures are maintained only to avoid waste since no humidity levels are administered, which is a vital factor for proper storage of green peas for table consumption and processing. About large amount of total Green peas production is being exported some part of the production is stored for green peas seeds.India produces one green peas crops per year. The major produce of the green peas crop is harvested in the winter season.

Green peas Whole - Sale Price Trends

In the absence of adequate Storage facilities,and short shelf life during the time of harvest, there is a huge supply of Green peas, which drives prices down. If Storage and processing facilities are available price volatility could be stabilized through consistent supply year around. The following Graph shows prices in different states, generally the prices of green peas is normally higher in the months of march to september its much lower in the months of the december,january and february .

Graph shows the annual whole sale price in different states of India.

Green peas export from India

PRODUCTION PROCESS

Production process flow

The following figure shows the production process flow of green peas manufacturing PEA - PODDING
This is the first stage of the processing unit in which peas are removed from the pods and seprated from leaves either manually or with the help of the pea podder machine and removing the bad quality peas after removing from the pods.

WASHING
The second stage of the processing is washing the peas to remove the stems,stones,and sand and the inspection proces also during the same time and after washing and removing the bad peas

BLANCHING
The third stage is the blanching in which the peas are put in hot water for few minutes.Blanching can be done in blancherBlanching helps in maintaining the taste,nutrient and color.

COOLING
The another stage of the processing is cooling the peas are immediately transfered after blanching process in a cold water after blanching proces to stop the action of hot water and after dat cold water is sprayed with pressure to remove dust particles if any.

IQF(INITIALLY QUICK FREEZING)

The last stage of the processing is initially quick freezing of the peas passed from the cold water spray.

After the processing of the peas following the above procedure initially quick frezeed green peas are packed.After frozen peas are weighed filled and packed into cans and bags. Then this bags are transfered to the frozen house at temprature of -5 to 120c thorough trucks.

PROCESSING LINE OF FROZEN GREEN PEAS

Proposed Product Mix

The proposed project will be producing the frozen green peas in different packing sizes.We are also looking for the french fries of the potato as it requires the same processing line.

Machinery Requirement
Following table shows machinery and equipment required for setting up frozen green peas manufacturing unit. MACHINE DESCRIPTION UNIT MAKE PRICE IN Rs. INDIA INDIA INDIA INDIA INDIA INDIA Rs 4,95,000 Rs 2,45,000 Rs 1,65,000 Rs 1,25,000 Rs 3,00,000 Rs 4,50,000 Rs 17,80,000

PEA PODDER WASHER BLANCHER COOLING TANK PERFORATED CRATES INITIALLY QUICK FREEZER TOTAL

1 1 1 1 6 1