25

Project Proposal For Establishment

of

Pack House(On farm handling storage etc.)

Installed Capacity/annum : 100 MT

Promoters Share : 2.00 Lacs
Term Loan : 1.00 Lacs
Unsecured Loan : 0.40 Lacs
Name of the Bank :
Proposed Subsidy : 1.50 Lacs
Total Project Cost : 3.40 Lacs

By

M/s -------------------------------------------------------------------------

Submitted to

SHM Govt. of Uttar Pradesh

 26
SUBMISSION OF PROPOSALS (PHM) PACK HOUSE (On farm handling storage
etc.)
Unit BY PRIVATE SECTOR UNDER NHM

1. Name of the Project : M/S Pack house (On farm handling storage etc.) by
Mr.----------------------------------------------------
2. Type of Activity : On farm handling & storage ,Sorting, grading, packing
Preservation of Fruits, vegetables and other perishable
items.
3. Objectives : To provide services of Sorting, grading, packing through
value addition, primary processing and storage of semi-
finished Fruits, vegetables and other perishable items.
4. Location of the Project with
address
a) General Area : Kh. No.:
Vill.:
Teh.:
Distt.:

b) Category of :
beneficiary
5. Constitution :

Public Limited
Company/Private Limited
Company/Registered Society
Association/Federation
Producer
Company/Proprietorship
Firm
Partnership
concern/Individual person/
Self help group(SHG)
6. Management : Private
7. Brief background of : The Company/firm/association/SHG is promoted by ------
promoter -------------Directors namely Shri ------------- and shri -----
----------. All the directors of the company are
agriculturists and have good experience.
8. Cost of Project : (Rs. In Lacs)
a) Land : Own land
(If purchased new :
along with :
documentary proof) :
b) Building : 1.50 for construction of shed
c) Plant & Machinery : 1.50
d) Contingencies : -
e) Misc. Fixed Assets : 0.10
f) Working Capital : 0.25
margin -
g) Pre operative Exp. : 0.05
h) Other Current Assets
& Securities
Total (Rs. in lacs) : 3.40

9. Means of Finance : (Rs. In Lacs)

 27
a) Promoter Share : 2.00
b) Bank Term Loan : 1.00
c) Subsidy : 1.50
d) Quasi Equity : -
e) Unsecured Loan : 0.40
Total Rs. : 3.40
10. Details of Cost of Plant & : Detailed list of plant & machinery/others utensils is as
Machinery /equipment follows:
supported by quotation. - e'khu@midj.k dk fooj.k la[;k vuqekfur
la- /kujkf'k
:i;s esa
1 Food grade barel 100 ltr 10 8000-00
2 Plastic crates 100 35000-00
3 Refractometer 1 lsV 5000-00
4 Platefarm balance 1 12000-00
5 Salinometer 1 lsV 500-00
6 FWater tanks (500 ltr. cap.) 1 3000-00
7 Various kinds of SS knives 1000-00
8 Aluminum top table 1 10000-00
9 Screw type juice extractor hand 1 1000-00
operated
10 Pedestal sealing machine 1 2000-00
11 Submersible pump 1 30000-00
12 Preservatives,chemicals,colour 1 1000-00
etc.
13 Furnace diessel 1 8000-00
14 Mini Generator set 1 15000-00
15 Strip sealing/packing machine 1 500-00
16 Harvestor, secatior 2000-00
17 CFB Boxes 2000-00
18 Aluminum bhagona 5000-00
19 Plastic basin 2000-00
20 Others items 7000-00
21 Zero energy cool chambers 2 8000-00
;ksx 150000-00
: Rs. 1.50 lacs (approximately)
11. Details of Building The details of estimate of working shed of 9x6 meter
construction and the cost covering storage godown has been enclosed as annexure
duly certified. -1
12. Area of operation with Block:
special reference to Districts Tehsil:
to be covered. District :
13. Availability of raw material, Abundant quantity of Mango, amla, papaya, guava,& all
name of the cluster and vegetables/spices available in the district as well as in
District along with the major surrounding area throughout the year. at a glance the total
crops. area in district is (ha) &
Total production in district is 000 MT.
14. Backward Linkage with The promoter also itself engaged in production of
farmers with reference to fruits/vegetables as well as having good contacts with the
either providing services or progressive farmers of their area. The beneficiary has
purchase of raw material. already its own raw materials for sorting, grading,
washing & minimal processing as per the demand of
market. Moreover number of other farmers willing to
provide their raw materials for same purpose.

15. Forward Linkages- Analysis Due to the shortages of availability of primary produce as
of domestic and export sorted, graded, washed & minimal processing for ultimate

markets, tie up made for sale
of Produce and branding
aspect.
16. No. of farmers/ orchardist to
be benefited.
17. SWOT Analysis.
18. Financial Analysis- IRR,
NPW, cost benefit Ratio,
Break even point, DER,
DSER, Projected balance
sheet etc.
19. Insurance of the fixed assets.
20. Certificate from Pollution
Control Department.
21. Name of the sponsoring bank
28
use of tertiary/final processing unit for converting these
produce to final finished products to be sale in
local/domestic/export market. the processor have to go
faraway places for procuring desired quantity to other
states/places at higher rates of semi-finished produce.
Thus there is ample of potential for more low
preservation units in that area.
Approx. 100 farmers to be benefited.
Strength :
There is a abundant availability of raw materials
such as guava, mango,amla,papaya, vegetables,
ornamental plants & spices in proposed area of
district.
The functional infrastructure unit is situated in
fruits/vegetable growing belt and having good
network of growers.
Vast domestic market
Weakness:
Low availability of adequate infrastructural
facilities
Lack of adequate quality control & testing
methods
Inefficient supply chain due to a large number of
intermediaries
High requirement of working capital.
Seasonality of raw material
Opportunity:
Large crop and material base offering a vast
potential for agro processing activities
Rising income levels and changing consumption
patterns
Favourable demographic profile and changing
lifestyles
Opening of global markets
Availability of capital subsidy from NHM to start
a business opportunity in local areas by
converting their raw materials to value added
products as per the local demands of the
consumers/market.
Threat:
Affordability and preferences of fresh food d
High inventory carrying cost
High packaging cost
Natural Calamity.
The proposed unit has a local market demand oriented
basis. the unit shall be run very successfully by
converting fresh ungraded fruits/vegetables to graded,
washed value added produce which is directly ready to
consume products. The unit has great advantage for more
profitability. there is an ample scope to enhance their
profitability within stipulated course of time.
Will Be Submitted Later if desired
No need of NOC from Pollution Control Board so far.
The proposal has been financed by -------------------------

along with the details of
Techno-economical appraisal
reports, copy of sanction
letter and Detailed Project
Report (DPR) as submitted
to bank.
22. Certificate regarding Non-
availing of subsidy from any
other Central/State Govt.
Department
23. Social benefits with special
reference to employment
generation.
a) Direct employment
b) Indirect employmnt
Women/S.T/S.C.
employment
24. Details of the sustainability
of the project with special
29
as well as self appraised by the beneficiary on the basis of
local requirements. The brief detail project report about
availability of raw material, utilities, miscellaneous
assets, others information elaborated as:
DETAILS OF THE PROPOSED PROJECT
Building
The construction /arrangement of building for value
addition shall be of about 1500 sq ft.area for working
shed followed by storage and packing facilities. The
anticipated expenditure is Rs. 7.00 lacs.
Machinery
A detailed list of machinery is already furnished. The
anticipated expenditure is Rs. 7.00 lacs.
Miscellaneous Assets
A provision of Rs. 25,000 would take care of the needs.
Preliminary & Pre-operative Expenses
It is estimated that registration and establishment
expenses and other pre-production expenses like trial runs
etc. shall be Rs.30,000/-.
Working Capital Requirement
Working capital is a pre-requisite for the success of any
project. However, in view of very small scale of activities
and typical nature of customers, the bank would hesitate
to provide post sales facilities. Major item of raw material
is guava, mango, amla, papaya etc which cannot be stored
for more than 2-3 days. Hence, it is assumed that the we
will arrange at our own fund resources as unsecured loans
from relatives/friends or bank if agree of Rs.100,000/- .
Raw Material
The all-important raw materials shall be sound, uniform
texture, and unripe but fully grown bigger sized . Other
raw materials like food grade colours and flavours and
citric acid shall be required in small quantity. Similarly,
polythene bags are also readily available.
Miscellaneous Assets
An amount of Rs. 25,000/- is provided towards working
tables, weighing scale, exhaust fans and furniture.
Utilities
Power connection of 10 HP is sufficient. Around 1000-
1200 ltrs. of water shall be required every day. Furnace
oil or kerosene consumption per day would be around Rs.
150/-. Thus, annual expenditure on utilities at 100%
activity level would be Rs. 90,000/-.
Enclosed as desired by SHM in the affidavit format.
Yes , more than 09
Yes, approximately 30
Yes , approximately 25
Since the proposed unit has a moderate investment and
there is an ample scope to enhance their profitability

reference to its capacity to
generate income since only
one time grant is admissible.
30
within stipulated course of time. The other benefits are as:
Large crop and material base offering a vast
potential for agro processing activities
Rising income levels and changing consumption
patterns
Favourable demographic profile and changing
lifestyles
Opening of global markets
Availability of capital subsidy from NHM to start
a business opportunity in local areas by
converting their raw materials to value added
products as per the local demands of the
consumers/market.

25. Implementation schedule Forwarding of Application submission

15 days
Site selection, bank loan formalities and commencement
of minor civil work
30days
Completion of civil work and placement of
orders for machinery 45days
Erection, installation and trial runs 15days
26. Amount of subsidy sought Rs.1.50 Lacs.
Financial assistance in the form of grant is available from
the Ministry of Agriculture, NHM, Govt. of India,
towards expenditure on capital investment for eligible
projects.

Recommended & Forwarded Signature of candidate

(By DHO/DDH/PRINCIPAL) Address--------------------------------
Phone & Mobile No.: ---------------

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1- fu/kkZfjr izk:i ij vkosnu i=A

2- iSd gkml lkbt&96 oxZ eh0 dk LVhesV o ekufp=A
3- fu/kkZfjr izk:i ij uksVjkbTM 'kiFk i= ewy :i esa :0 100A
4- l{ke izkf/kdkjh@xzke iz/kku }kjk iznRr gSf'k;r izek.k i=A
5- tehu lEcU/kh vfHkys[k [kljk [krkSuh] fdlku cgh vkfn dh Nk;kizfrA
6- fu/kkZfjr izk:i ij lEcfU/kr tuinh; vf/kdkjh dh LFkyh;@laLrqfr vk[;kA
 31
Pack House (On Farm Handling & Storage) Model Project
Project Highlights
Name and Address of Organization :---------------------------------------------------------
.

Location of Project
Proposed Capacity [Tones /Year] Will depend on products
Capacity Utilization 100% from year one
Cost of project Pack House
a. Civil Work Rs. 150000.00
b. Machinery Tools Rs. 150000.00
B.E.P. 41%
Employment Generation Approx 1500 man
Technology Suppliers ICAR, India/SHM, UP
Marketing Own Network/ Job Work.

INTRODUCTION
India is among the largest producers of many agricultural products and has a great
potential for food processing export. Recent years have seen impressive growth of the
Indian food processing sectors in terms of R&D. Technology advancement development
and application.India is a country of continental size with a population of over 1000 million
out of which 350 million live in urban areas. The rising consumerism of burgeoning urban
Indian middle class is reflected in the fast growing demand for processed and packaged
items. Global business in processed food is valued at around Rs.16,080 billion [US$335
billion]
While India contribution to the same is around Rs.1400 billion (US$30 billion). The
dormant food processing industry has seen spurred growth mainly due to the change in life-
style and changing international scenario with WTO agreements and entry of MNC's in the
sector.
The great Indian Consumer spends about half their disposable incomes amounting to
Rs.4000 billion (US$83 billion) on food and beverages etc. The irony is that in spite of all
this the India food procession industry is neither big nor vigorous. The reason is we the
Indians still consume primary food mainly, with very little processing or value addition.
The Value addition in India being as low as 7% whereas in China it is 25% and in
Philippines 50% and United Kingdoms 90%. The scenario in India, Asia and Asia Pacific is
changing rapidly, on one hand the traditional foods are being slowly replaced by newer
foods in the growing urbane markets of the region. On the other hand the preparation of
traditional foods is being made convenient by processing food products. This has opened
new and brighter avenues for the upcoming food procession and packaging industry
together with scope and avenue for new non conventional foods hitherto unknown to the
elite of the region.
The government of a consortium of industries or any institute Industry symbiosis
must take up the task for technology forecasting and assessment as markets globalize.
Manufactures have to be highly competitive in order to stay in business. Use of outdated
technology can no longer make viable products. Newer entrants have never technologies
thereby giving them advantage over the older and marginal players over costs of
production.

MARKET POTENTIAL AND STRATEGY

Mathura the holy city of lord Krishna is a major tourist center in the domestic circle
and enjoys a grand influx of people during the whole year. Other than this, the district also
 32
has the qualification of being extensively driven by agriculture and allied businesses. To
this the district has been declared a vegetable and fruit zone thereby meaning the policy
maker are living no stone un-turned to bring up this aspect of agriculture/horticulture and
allied agri businesses to flourish in the region.
The proximity of this production centre to the main market of Delhi and Punjab
makes its an ideal for the allied agri business or production processes partly or heavily
depending on the agricultural produce or residues which being available in abundance are
also cheap. The finished goods can easily be channeled to the nearby markets easily.
A Pack House in the vicinity shall also provide employment to hundreds of youth
the region together with an opportunity to become self reliant entrepreneurs.

UTILITY AS PART OF SUPPLY CHAIN.

A supply chain is a network of facilities and distribution options that performs the
functions of procurement of materials, transformation of these materials into intermediate
&finished products, and the distribution of these finished goods to customers.
A pack house shall provide for the necessary link between the grower and the
consumer through the retailer. In other words a effective management shall be possible by
coordinating the activities of suppliers of meet the requirements of customers, involving not
only time schedules but also the quality and quantity requirements.
The four major decision area a pack house shall effect through its proper
management are
Location
Production
Inventory
Distribution
The geographic placement of production facilities, stocking points and sourcing
points is the first natural step in creating a pack house. The location of facilities involves a
commitment of resources to a long term plan. The second strategic decision includes what
products and their allocation to various suppliers. These decisions include the construction
of master production schedules, work load balancing and quality control measures at the
facility. The third major area being inventory. Inventories exist at every stage of supply
chain as either raw material, semi finished or finished goods. The primary purpose to buffer
for any uncertainty that might exist in the supply chain. Since holding of inventories can
cost between 20 To 40 percent of their value, there efficient management is critical.
The distribution is what is facilitated through this pack house the most. The raw
horticulture product that might have found it difficult to reach the markets in the deep and
far away shall now be catered to by the grower thereby increasing in the customer service &
satisfaction levels.
PROCESS INVOLVED IN A PACK HOUSE
Inspection
Washing
Sorting &Grading
Processing
Packing
Labeling
Dispatch

PACK HOUSE: A OVERIEW

The pack house shall essentially consist of a building black where in the raw
horticulture produce shall be brought in for inspection. Once laid on the inspection tables
the labor shall wash, sort and grade the produce according to its quality and marked
requirements. This shall be followed by necessary processing techniques that shall increase
 33
the shelf life of the produce without changing its fresh looks. The produce than shall by
packed and dispatched.
(Rs. In Lacs)
1. COST PROJECT Amout ( Rs.)
1. Land & Building 1.50
2. Machinery Tools 1.50
Total 3.00
2. Means of Finance Amount (Rs.)
1. Own Contribution 2.00
2. Loan to Bank (optional) 1.50
3. Subsidy 1.50
Total 3.50

PROJECTED BALANCE SHEET AS AT 31ST MARCH

(Rs. In Lacs)
Year Liabilities I II III IV V
Capital 1.00 1.00 1.00 3.50 3.50
Bank Loans 1.50 1.50 1.50 1.50 1.50
Profit & Loss A/C 2.28 4.78 7.48 10.23 13.02
Subsidy 2.50 2.50 2.50 Nil Nil
Total 7.28 9.78 12.48 15.23 18.02
Assets
Fixed assets 4.46 3.99 3.57 3.20 2.87
Cash & Bank Balance 2.28 5.79 8.91 12.03 15.15
Total 7.28 9.78 12.48 15.23 18.02
PROFITABILITY STATEMENT
(Rs. In Lacs)
Particulars I II III IV V
Raw Material 17.50 19.50 21.50 21.50 21.50
Packing Material 5.50 6.00 6.50 6.50 6.50
Marketing expenses 1.00 1.10 1.20 1.20 1.20
Electric expenses 7.50 7.50 7.50 7.50 7.50
Interest 0.18 0.18 0.18 0.18 0.18
Depreciation 0.54 0.47 0.42 0.37 0.33
Cost of Production 32.22 34.75 37.30 37.25 37.21
Sales 35.00 38.00 41.00 41.00 41.00
Profit before Tax 2.78 3.25 3.70 3.75 3.79
Income Tax 0.50 0.75 1.00 1.00 1.00
Net profit 2.28 2.50 2.70 2.75 2.79
Depreciation added back 0.54 0.47 0.42 0.37 0.33
Increase in working capital Nil Nil Nil Nil
Cash Accrual 2.82 2.97 3.12 3.12 3.12
Net Cash Accruals 2.82 2.97 3.12 3.12 3.12
 34
DEPRECIATION OF FIXED ASSETS
(Rs. In Lacs)
PARTICULARS Land & Building A.C Furniture Total
Opening Balance 4.00 0.25 0.75 5.00
Rate 10% 25% 10%
Dep. Ist Year 0.40 0.60 0.08 0.54
Closing Balance 3.60 0.19 0.68 4.46
Dep. IInd Year 0.36 0.05 0.07 0.47
Closing Balance 3.24 0.14 0.61 3.99
Dep. IIIrd Year 0.32 0.04 0.06 0.42
Closing Balance 2.92 0.10 0.55 3.57
Dep. IVth Year 0.29 0.03 0.05 0.37
Closing Balance 2.63 0.07 0.05 3.20
Dep. Vth Year 0.26 0.02 0.05 0.33
Closing Balance 2.37 0.05 0.45 2.87