Entrepreneurship Project On Jam, Jelly & Pickles
Entrepreneurship Project On Jam, Jelly & Pickles
Entrepreneurship Project On Jam, Jelly & Pickles
Project Submitted to
D Y Patil University,
School of Hospitality and Tourism
Studies
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CERTIFICATE
Date –
Place
Faculty Incharge External Examiner
Director
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ACKNOWLEDGEMENT
My heart felt gratitude to Director Mrs. Vandana Mishra for her guidance
and valuable support and constructive recommendations on this project.
Date :
Signature of Guide
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TABLE OF CONTENTS
1. INTRODUCTION
2. MARKET POTENTIAL
3. MANUFACTURING PROCESS
6. RAW MATERIAL
7. UTILITY
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INTRODUCTION
Northeastern region by virtue of its diverse agro-climatic conditions, varied soil type and
abundant rainfall has the promises of becoming an excellent sourcing point for high
value horticultural produce and value added products unique to the region for onward
marketing both within the country and abroad. There is ample scope for increasing the
area under such plantations. Most of the produces go waste during the production due
to lack of processing and storage facilities and inadequate infrastructural facilities.
There is great potential of processing these products and interactions with food
processing units in Northeastern region. By setting up of small scale food processing
industries, the result would be doubly beneficial: utilizing available produce thereby
avoiding wastage and running a viable unit. Fruits are an important source of energy for
human-beings but they are perishable items. Hence since many years various products
are made from juice of fruits so that they can be consumed during off season as well.
Products like jam, jelly, pickles etc. are made from fruits since long.
With the advent of technology and preservatives, shelf life of such products has gone up
and they can be preserved for many months with proper packing. With the fast growth
of the urban areas and the living standards of the Indian people growing higher, there is
a good potential to develop this industry in the small scale sector. Considering the
potential market opportunity of such units, the present detail project report has been
developed. The main objective of such initiative is to productively utilize the abundantly
available resources of the local area and to enable uninterrupted supply of the products
to market throughout the year.
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In the days before refrigeration, an entire growing season's worth of fruits and
vegetables were preserved for use throughout the winter. Cucumbers transformed to
pickles, and tomatoes and beans were canned. Fruits were mixed with sugar to create
jams, and to give a taste of summer to a bitterly cold February morning's breakfast. In
1869, Dr. Thomas Branwell Welch used the Concord grape to launch his grape juice
company. In 1918, Welch's company made its first jam product, Grapelade.
Jelly contains gelatin, which is made from collagen which comes from animal bones and
skin. When the gelatin is heated and mixed with water the protein fibers unravel and
come apart, so the jelly from the packet melts. Pickles have been around for thousands
of years, dating as far back as 2030 BC when cucumbers from their native India were
pickled in the Tigris Valley. The word “pickle” comes from the Dutch pekel or northern
German pókel, meaning “salt” or “brine,” two very important components in the pickling
process.
Jam, Jelly and Pickles are important food products as they enhance palatability of food
due to its taste and flavour. They are prepared from fruits and they supplement the food
with vitamins and minerals. There are many types of pickles available in India. These
products have very good market potential as they are consumed in most of the
households, restaurants, other eateries, clubs, hostels etc. They are sold through many
outlets like grocery shops, departmental stores etc. But these products are very popular
in the North-East region of India and the consumption is increasing year after year.
Presently, there are limited numbers of small units producing these products in the
region and there is a wide gap between demand and supply which is met by the
manufacturers from outside the region. Quality should be emphasized at each step right
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from the beginning to the marketing of the product. Over the years, an image of high
quality products should be cultivated. The effectiveness of distribution coverage and
practice is of paramount importance in achieving the desired fruit juice sales.
Understanding of the distribution channels is crucial in order for the manufacturer to
plan and implement an effective distribution strategy. Distribution network should be
given extra emphasis. Market share could be gained by enhancing retailer, and
distributor margins. Normally distribution and retailer margins in fruit juice business are
from 15 to 20%. The proposed business may utilise media such as broadcast,
newspapers and also social network platforms at certain interval of time to introduce the
products and also attract more customers. Placement of the product at strategic outlets
and publicity in local media would boost sales. It may also carry door to door services in
the initial years to introduce the product and attract more customers. Marketing plan of
the proposed project may include promotional campaign like offering special discounts,
referrals, advertisement, new product development, packaging innovations and tying up
with buying houses.
The key products of the proposed project are as follows;
Jam
Jelly
Pickles.
The primary objective of the fruit juice processing is to preserve the perishable fruits in a
stable form that can be stored and supplied to local as well as distant markets round the
year. Processing also can change fruits into new or more usable forms and make fruits
more convenient to prepare. The use of fruits for the preparation of processed products
will not only reduce wastage of fruits during handling but also add nutrition and
palatability to the drink. The rapid increase in the production of these items in different
parts of the country is a proof of their rising popularity. The proposed project would
procure the raw materials locally. After processing, the products would be supplied to
the market through distributors/ wholesalers/retailers.
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MARKET POTENTIAL
It is estimated that the total production of processed fruit & vegetable in India is about
15.0 lakh tonne. Out of various products fruit juices and fruit pulp accounts for 27
percent, followed by ready-to-serve beverages and pickles being between 12 to 13
percent each, jams & jellies 10 percent and synthetics 8 percent. There are good
reasons to belive that the processed products of fruit & vegetable business will remain a
growth industry for a long time, one of the main reasons for expectation of growth is that
the consumption of mixed fruit jam/orange jam/jelly/marmalade/pickle is gaining
popularity day by day owing to the growing change in the food habits and increased
consumption of bread and other convenient snack foods. Among the established brand
in the jam/jelly segment, Druk, Kissan, Dipy’s tims and Sil are the prominent names and
in case of pickle production, Nilons/Arnapurna/priya are famous.
This report presents a comprehensive analysis of the global jam, jellies, and pickles
market by product (jams, jellies, and pickles), by distribution channel (hypermarkets and
supermarkets, convenience stores, independent stores, and others).
Increasing demand for natural and organic products is one the key trends spurring the
growth prospects of this market during the predicted period. The growing popularity of
natural products has also led to the farmers getting a higher price for their products if
their produce is certified organic. This type of farming allows for the use of advanced
ecological approaches to better manage fields and crops.
Moreover, organic farming is a safe method of farming as organic farming does not use
toxic chemicals and pesticides. This has led to many farmers shifting to organic farming.
Also, consumers perceive organic food products to provide better nutritional benefits
than non-organic food products, leading to this market’s growth in the coming years.
During 2017, the jams segment dominated the market and accounted for more than
52% of the market share in terms of revenue. The versatility of jams is enormous, and
many consumers and vendors are experimenting different flavors which will drive this
segment’s growth in the future.
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The global jams, jellies, and preserves market is highly fragmented due the presence of
several international and regional players. The vendors compete in terms of product
differentiation, product pricing, quality, innovation, service, reputation, and distribution.
The competition in the market is expected to intensify because of an increase in the
number of retailers, introducing private-label organic food products, the acceptance of
organic food products by consumers and price wars among vendors. Therefore, to
survive and succeed in this competitive environment it is imperative for the vendors to
distinguish their product offerings through a unique value proposition.
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MANUFACTURING PROCESS
JAM
BOILING
MIXING OF SUGAR
WITH PULP
COOLING
PACKING
JELLY
BOILING
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PICKLES
CURING IN SALT
MIXING OF
INGREDIENTS
PACKING
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COST OF LAND AND BUILDING
TOTAL 675000
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COST OF PLANT AND MACHINERY
Slicing Machine 2
Juice Extractor 1
Mixer/ Grinder 1
Baby Boiler 1
Total 572000
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RAW MATERIAL
B. Pickles
1. Fruits/ Vegetables 190 kg 25 per kg 4750.00 9.50
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UTILITY
3 Gas RS.2,500
5 Telephone RS.700
Total RS.23,700
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PRELIMINARY AND PRE-OPERATIVE EXPENSES
Total 195621
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OTHER FIXED ASSETS
Subtotal 215500
Total 237050
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BREAK EVEN ANALYSIS
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PROJECT COST
Total 18.75
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MANPOWER REQUIREMENT & COST
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MEANS OF FINANCE
EQUITY
DEBT
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DEPRECIATION SCHEDULE
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REPAIR AND MAINTENANCE COST
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BALANCE SHEET
ASSETS
Gross Fixed Block 15.58 15.58 15.58 15.58
Subtotal (a) 15.58 15.58 15.58 15.58
Depreciation
Cum. Depreciation 0.84 1.68 2.52
Subtotal (b) 0.00 0.84 1.68 2.52
Net Fixed Asset Block (a-b) 15.58 14.74 13.90 13.06
Current Asset Block
W.I.P. (Inventories)
Cash & Bank Balance 1.21 1.04 2.10 5.68
Other Current Assets 4.83 5.55 6.28
Subtotal 1.21 5.87 7.65 11.96
Preliminary expenses not written 1.96 1.76 1.56 1.37
off
Total of Assets 18.75 22.37 23.11 26.39
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