A.

EXECUTIVE SUMMARY

Ladakh is among most difficult terrain and hard to access places in the world. Due to these reasons the
economy and industrial development in Ladakh is overlooked. In this region there are places which are
underdeveloped, and there is scope of industrial set-up at these places but the potential of such places is
unexplored. Working in such conditions is a challenge for human being, that’s why big industrial players are not
showing much interest in this place. This results in slow development of that area, unemployment, poor
economy etc. So there is a need for the industrial development at this place with the help of government
support to young entrepreneurs and local people.

The proposed project area is coming under Leh District of J&k State situated in the northen hemisphere,
adjacent to Pakistan mainly inhabited by the primitive tribes covering more than 95% percent of the total
population. The physiographic nature of the area witnesses a favorable topography and climatic conditions
where the Tribal farmers are growing vegetables and other high value horticulture Crops like Apricot, Apple,
cherry, tomatoes etc., apart from wheat, barley, buck wheat and other cereal crops for their livelihood.
In spite of this access to rich natural resources, the tribes of this area are facing the inimical troubles of socio-
economic distortions and physically distanced from the main markets without any proper linkage. The
result emerges that after profound labour cannot fetch ever sustainable economic gain thus remain
trapped within under-development.
Studying the grim situation and dire consequences faced by the tribes in the proposed project area,
Karmabhoomi intervened in the area to create an appropriate base for the socio-economic development of
the marginalized and weaker sections of the community mainly focusing the priority on the specific science
and technology inputs by means of establishing the entrepreneurship development units transferring the
technology to the people and to provide the base of livelihood support, promoting and upgrading the skills for
the appropriate utilization of the resources in a sustainable manner.
This report is for the creation of such platform which would utilize the skills and resources available there
optimally, which can produce product at competitive price and can provide employment opportunities to the
local people at their place.

1
1. Project Title

“Low Cost preservation and processing of the locally available horticulture produces (apricot) by the tribal
women SHGs of Nubra Valley”.

2. Objective

1. Establishing a Phase-1(hereinafter referred as “AP1”) satellite processing unit of 400 ton per
annum raw apricot processing.

2. Utilizing apricot and resources available in Turtuk and neighboring villages, optimally, to produce a
vertically integrated product range of apricot with better quality and competitive price.

3. Providing skills and employment to people by giving them an industrial platform.

4. Enhancing recognition of these products in national and international markets and hence
maintaining and improving the cultural heritage of India.

2.1. Sub objectives

1. Promoting and improve the socio-economic life-style of the Tribal (ST) women generating the
gainful employment opportunities utilising the technology, promoting research and sustainable
development.
2. Upgrading the traditional skills for the appropriate utilization of locally available horticulture
produces.
3. Providing the means and ends to the women in access and control over the horticulture
resources through value addition initiatives for sustainable income source.
4. Designing, improving and preserving the quality of products being g r o w n by tribal women
through scientific processing and technology transfer for value addition.
5. Enhancing the involvement of the tribal women in low cost preservation, processing and
packaging of the finished horticulture produces linking them to the market.

2
3. Work Plan:
The work plan of the project will basically be based on the value addition, economic generation and self-
employment opportunities. Initially, the collection of the raw materials will be entrust with the SHGs, the
growers and gatherers for collection. Then after the collection of the materials shall be sorted at the
collecting units which will further be linked up with the processing unit located at the District HQ near
Diskit. In the central processing unit, the technologies and equipments of evaporation technology,
dehydration technology, quality control, oiling etc., will be established. For juicing, pulping and grinding -
simple and appropriate machinery; for packaging purpose - the crown corking machine, PP and RO cap
sealing machine, embossing machine; for quality control - testing equipment etc., will be used. For
evaporation and dehydration technology - steam and solar heat, mini-boiler and kettle, solar drier and solar
cooker will be focused upon.
In the satellite units, the hand operated equipments, solar drier, Green Houses, hand pounding apparatus
etc. will be maintained. The technology will be made available by hands-on training to SHG members as a
part of technology transfer. The training to the master trainers, technology transfer and consultancy will be
imparted by karmabhoomi with the help of horticulture department Leh, as and when required. The training
to the selected master trainers and leading members of the SHGs (four from each SHG) will be held at
karmabhoomi field station, Turtuk for 30 days and the second training for product development will be
organized at the Central processing unit for another 30 days.

Type of Industry : Food Processing

Type of sector : Manufacturing/Production

Region of set-up : Ladakh/ Nubra (Turtuk Village)

Type of enterprise : Public Private Partnership

51 % Owned by Karmabhoomi

49% Owned by Local communities.

(Satellite unit, AP1, location, Turtuk, Nubra valley, Leh Ladakh)

3
 4 Project duration :

Project “Julley” has been divided into three phase, this proposal is only for the phase 1 of the project.

A. Phase 1: Duration 36 months, Projected cost: `26,029,000 (from April 2011 onwards)

Objectives:

1. Training and educating people for better production of apricot and about various processing
techniques.

2. Forming small cooperatives units for apricot drying, oiling and other useful articles by building glass
houses, drying units and other techniques for apricot drying in the various locations to exhaust all the
production.

3. Preparing the uncultivated land Present in the village for plantation of apricots using various
techniques for increasing the fertility.

4. Planting the apricots on the unused fertile land.

5. Marketing the product in various local markets of north India like Delhi NCR, Chandigarh, Ludhiana,
Patila, Jalandhar, Panipat, Sonipat

Highlights:

a.) To utilize as much of the apricots as possible to make value added processed products.
b.) Establishing drying machines which help apricots to dry in a controlled and hygienic way would help
the product in being presentable, which in turn would ease the process of finding a suitable market.
c.) Organizing supply chain to expand the market for premium returns.
d.) Converting the non-agricultural unused land into agricultural to increase the production of apricot and
vegetables.
e.) Contacting agricultural universities and other relates colleges for internship and other useful
interactions.

B. Phase 2: Duration 72 months (From April 2012 onwards)

Objectives:

1. Building Irrigation facility like canal, drip irrigation or tube well, to start in the newly included
agricultural facility, to irrigate the unused land area of 150 hectare (MOU has been signed for the land
use).

2. Establishing an integrated food processing unit for apricot processing by which following Articles will be
produced: Dry Apricot, Apricot candy, Apricot oil, Apricot cream, Apricot scrub, Apricot jam, Apricot
juice.

3. Marketing the same in different part of India and abroad.

a.) Plantation of apricot and other useful vegetables on the new arable land.
4
b.) Teaching grafting techniques for maintenance of the plant, replacement of dead saplings. Horticulture
department
c.) Besides involved at the working level, more villagers will be involved at management level to handle
the project.

C. Phase 3

Objectives:

a.) Allotting a fund percentage for the establishment of proposed university in Nubra.
b.) Establishing and RFID system for the better governance of the Project julley.
c.) Most of the project to be handed over to the villagers. Monitoring and assistance will be provided by
Karmabhoomi. Encouraging the villagers to periodically upgrade for other innovations.

5
 5 Project area:

The project area is coming under Nubra blocks of Leh District state of J&K, namely tribal villages named
Bokdang, Chulunkha,Giradi, Turtuk, Tyakshi and Thang. Except Bokdang all these villages were in Skardu
district now in Pakistan.

Turtuk:

Out of the most fertile regions of Ladakh is the Nubra valley. Having a warmer climate and lower altitude, the
region is rich in vegetables like tomato, cauliflower, eggplant, cabbage, onions and produce abundant apricots
and walnut.

Turtuk being secluded due to vicinity from LOC, has not been able to have enough exposure to use the
abundant production in their good. Vegetables are consumed by the large households which comprise of 6 and
sometimes even 20 members. Apricots are dried on the roof tops and due to uncontrolled procedure of drying
they majorly do not yield a presentable product. Too much sun or a rare rainfall can spoil a complete batch of
apricots which are left in open to dry. As an estimate, nearly 70% of the total production gets spoilt and the
one which is eventually dried is also not a very superior quality.

Turtuk has been opened for tourists in the year 2010, but due to the flash floods, it did not see many tourists
that year. Year 2011 saw an estimated 3000 tourists coming to see the part of nubra which was inaccessible for
very long. Tourism is a very important potential stream from where the income can flow for the villagers, given
the incredible landscape that this village is blessed with. But, with a population of nearly 2500(both new and
old village), a small number of 3000 tourists is huge considering the infrastructure and resources available. Now
the tourists will also consume a good share of what would only suffice for the villagers. Therefore, there is an
urgent need to have enough of everything and that too in a sustainable format.

6
To have enough vegetables and crops, it is necessary to have more of agricultural land. Good quality seeds,
manure, irrigation and training are also important for a better yield. For the village to remain a tourist hot-spot
and at the same time to be independent of the food crops and vegetable demands, it is important to think
futuristic and to train the villagers to react in a systematic way to the newly opened tourism.

(Turtuk have the potential to become the Apricot Hub of India, Photo by Aditya Singh)

7
 Under
Village Population 18 Students Illiterate Unemployed
Turtuk 1921 602 878 540 402
Bokdang 2474 1261 578 724 88
Tyakshi 1022 497 353 155 6
Total 5417 2360 1809 1419 496

commulative data of villages

6000
5000
4000
3000
Total
2000
1000
0
Population Under 18 Students Illiterate unemployed

Population distribution of villages

6000

5000

4000

3000 Turtuk
Bokdang
2000
Tyakshi
1000 Total

*Data source: LAHDC Leh, TISS reports and preliminary research of karmabhoomi)

8
5.1 Observations*:

 In the last few years the population of girls has increased by a significant number.
 The number of school dropout had increased tremendously and will keep on increasing due to the poor
educational system and infrastructure.
 The increase in the school dropout students will create an unemployed high spending youth who can
be easily derived by money.
 The total number of youth population which will be needing employment is increasing every year.
 The people who have employment will lose their employment in the near future due to change in the
economy and various other reasons like dependency on Indian Army, BRO and NREGs for employment.
 In a short future the population will need a sustainable source of income for their survival as the village
has become an open economy.
 If no steps will be taken in the near future the economy can be attacked by the outside agencies, which
can bring harm to the national security.
 There is hardly any employment for females; the only employment for the women is agriculture which
is not generating any cash flow in the hands of women.
 Condition of female in the society is miserable.
 On an average there are 6 children in each family.
 The society needs a strong educational system.

*Observation has been take by karmabhoomi and FPC Pvt. Ltd.

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 6. Budget Summary:
A. Project “Julley” Phase-1
B. The project is designed for the holistic socio-economic benefit of 2000 women SHGs promoted in
the proposed project blocks by the organization. The budget is divided into 2 stages first is
Capital (Non-Recurring) and second is Recurring, Contingency and Trainings.

The Non-Recurring expense is meant to be incurred over three years for the establishment of the food
processing unit completely designed as per the norms of the government.

Karmabhoomi - the project implementing agency agreed to bear 20 percent of the total budget of
Phase-1 through Feasibility study, land property, infrastructure, contribution, office management, man
power and equipment, Branding and Marketing with the statutory sureties. The details of the budget for 1
year are mentioned in para 11 below.

6.1 Name of personal investor and organization:

Name of the Personal Investor : Mr.Atul Kumar, (President,Karmabhoomi)

Name of the Personal Investor: Mr. Namit Madan
(Executive, Karmabhoomi)
6. 2 Identifications:

1. Project title:

Low Cost preservation and processing of the locally available horticulture produces, especially Apricot by
the tribal women SHGs of Nubra Valley.

2. Details regarding:

(a) Profile of Project area

The proposed project area is coming under the geographic scale up of Leh District located at the
northern hemisphere of the State of J&K– Consisting most backward and border villages ranked as
No. 1 by the Planning and Coordination Deptt., Govt. of India, for its socio- economic
backwardness and stagnation from all corners.

The District is mostly dominated by tribal community covering around 95% percent of total population and
encircled with the great Karakorum ranges belongs to great Himalayas with a bountiful natural
resources, damping climate with ecological balance and also the agro-climatic zones purports to be suit for
the ample production of horticulture crops with better irrigation potential and topography.

10
The proposed project area is coming under Nubra block namely, covering 5 tribal villages which are
periphery to each other with ample productivity of horticulture crops like Apricot, Apple, cherry, walnut,
tomatoes and other crops.

In order to promote the livelihood initiatives of the target community (STs) in the proposed project area,
basically this project has been designed to extend the socio-economic benefit to 2000 women SHGs,
totaling nearly 3500 beneficiaries generating the employment opportunities enhancing their income
potential and growth, developing the skills, upgrading the traditional skills with innovative science and
technology development initiatives. The profit of the plant will help in building a sound educational system
which will make the society self sustainable.

In order to avoid the inconvenience made in times of collection of horticulture crops, the proposed project
area is divided into 2 zones namely, Zone I Turtuk, Zone II.Sumur, on the basis of the identified zones, the
activities and resources on prime produce are also be collected separately, in turn to linking up with
the Central processing unit located at Diskit- the District HQ after the completion of phase-2 of the project
for tangible and effective marketing tie-up.

11
(b) Target Population : Predominantly Women from scheduled Tribes

(c) Direct Beneficiaries : 2060(ST Women beneficiaries)

6.3 Duration Number of months : 36 Months (3 calendar years)

6.4 Total Cost : `26,029,000

7. Name of Principal Investigator : Mr. Siddharth Tiwari

Designation : Treasurer

Department : Social Development Sector – NGO

Sex (M/F) : Male

Date of Birth : 30-09-1985

Organisation/Inst. Name : Karmabhoomi

Address : flat 31, Pocket-2 Dwarka sector 19 New

Delhi 110075
Telephone: 08826747666
Email: siddharth@karmabhoomi.com

7.1. Name of Co-Investigator : Mr. Mahesh Kumar

Designation : Senior consultant PWC.

Department : Merger and Acquisition

Sex (M/F) : Male

Date of Birth : 21-07-1981

Organization/Inst. Name : Price Water House Cooper

12
8. Expertise available with the group

The organization has 3 years of intensive experience in social sector keeping in touch with the
community maintaining the pertinacious relationship with the community, other cross sections as well as
the PRI members, starting from grass root level to District and National level.

Karmabhoomi has dedicated working force with committed sprit, resourcefulness and diversified
backgrounds. It also has the good social mobilizations skills in mobilizing the community forming and
promoting the self-help groups, imparting the trainings on skill development of the members.
Karmabhoomi also maintains the tie-up with the banks and others corporal sectors for the economic
empowerment of the groups. In most of the groups there are the skilled experts in various sectors of
entrepreneurship development, after getting the consecutive trainings from various premier institutions
like IITs, IIMs, DU, NIFTs, NITIE, etc.

8.1. Facilities/Assets/Equipments available:

Karmabhoomi has a spacious resource training centre in a congenial and tranquil atmosphere at Turtuk.
Karmabhoomi has human power of diversified fields like Art, Engineering, Management, Law, Doctors,
Administration and has ample infrastructure and equipment support from all corners, further to avoid the
inconveniences to meet the project needs.

8.2. List of on-going and completed projects by the group giving the following details

Title of the Year of Start Project Cost Name of the

Project and Sponsoring
completion organizatio
Tourism 2010 to till date 1,14,297.00 Selfnfunded
Development
Project in Turtuk
Sustainable 2010 to till date 4,91,279.00 Self-funded
livelihood promotion
of
Ladakh and Gadwal
protecting and
restoring the
Natural Resources
and commodities.
Teach to Learn, 2011- to till date 14,06,787.0 Self funded
Providing the
dynamic education
to tribal villages

13
 9. Technical details:

1. Description of the problem and its priority as perceived by the people including socio-
economic status of the area.

As the proposed project area comes under the most backward district and primarily inhabited by the
primitive tribes in the mountain terrain belts, undulating landscape and sparsely inhabited population,
very agglomerated in nature, inaccessible area, inappropriate resource utilization etc are the main issues
in the proposed project area. Also due to Lack of appropriate market linkages, high rate of wastages, lack
of transportation, separated from outer world for a long time etc has created bottlenecks in the areas
like Bokdang, Chulunkha, Turtuk Tyakshi and Thang in Leh Distt., The excessive production during the
peak season leading to wastage of 60-70% of the total crop, low quality of the crop and limited linkages to
the potential market; which offers very morose price rate. Simultaneously, there are the inimical
constraints in connection with the value addition of the horticulture crops like plucking, cleaning,
grading and sorting etc., which are normally perceived by the people of the proposed project area. Apart
from this, there are no entrepreneurship development initiatives or the expertise in a particular sector
and also lack of knowledge in storing and procurement of the grains / crops. All these inappropriate
priorities and the drawbacks are the sole cause for the socio-economic potential and growth of the people
in a sustainable manner rather dispersing their identity from the proposed project area in a flow of
migration towards other portions of the State.

2. Suggested solution(s) and alternatives with anticipated physical and financial benefits. Solutions
attempted by our organization to solve the problem.

Creating awareness for the need and benefit of the value addition, development linkages with agro-
processing units and marketing channels for obtaining better returns from the crop etc., are the alternatives
and suggestions. Simultaneously, to anticipate the physical and financial benefits, new forms of value
addition such as packaging and branding can be contacted with the research and technology development
institutions other innovative science and technology development institutes within the country or
abroad. Such ventures will help in getting better returns from the primary and secondary parts from the
crops. Apart from this, the training on post crop harvesting technology needs to be imparted for example,
production and marketing of different finished products, can be promoted, to anticipate the physical
and financial benefits. Attempts should also be made at local level for value addition which can be sold at
local markets and tourist which has become a high potential market in these areas.

Karmabhoomi has initiated the dynamic steps maintaining the good institution linkages, marketing tie-ups,
establishing the rapport with the marketing and branding agencies like PMD India, Broadcast2world and
other popular market agencies, it has taken the initiation to impart the skill development trainings to the
SHGs inviting the experts for food processing training, apart from the linkages with premier institutions like
ISB, IIMS, NIFT, NITIE, VIT, DU etc.
Earmarking the dire consequences and baffling issues of the proposed project area already a preliminary
investigation-cum-research study has been conducted by Karmabhoomi in consultation with the FPC(India),
Delhi, with regards to the Apricot post harvesting situations, backdrops and the drawbacks faced by the tribal
investigation-cum-research study has been conducted by Karmabhoomi in consultation with the FPC(India),
14
 Delhi, with regards to the Apricot post harvesting situations, backdrops and the drawbacks faced by the tribal
farmers in the proposed project area, mainly the intricacy of the problems faced by the women community
while processing the horticulture crops, solutions were also chalked out in the study. Again another study

on low cost processing and preservation of horticultural produce through participation of Turtuk village was
made in details apparently describing and denoting the issues faced by the tribal women and the critical
gaps, major constraints in relation to the marketing and the sustainable promotion of livelihood initiatives,
the technology transfer vis-à-vis the tribal women and the solutions were given for appropriate value
addition options and on food processing of the crops chalking out the opportunities, describing the
situational analysis of the District and the project area and also the socio-economic profile of the people in
the proposed project area etc., were narrated in the study.

The research study was compiled by a team of Professional from various premier institutions like IIMs, NIFT,
NITIE and Delhi University.
(Turtuk village: Nobra valley, Photo by Paramvir Ahlawat)

15
(Turtuk Village, Nobra Valley Leh Ladakh India world Earth, The Universe.)

16
 4. Implementation strategy covering aspects:

(a) Information about local economy, relevant artisanal skills, market availability and link
up, etc.
For the cascading effect and smooth implementation of the program in the proposed
project area, the organization has initiated its strategic plan of action in a better conducive way
to minimize the stableness of the local economy imprinting the values on the access and control
over the resources like the groves, usufructs as the domains of pristine years by the tribes in
the project area.It is planned to initiate the innovative approach of sun drying in
downsizing technology for the value addition of the horticulture crops providing the better
marketing prices and benefits to the people imparting the skill development training and
entrepreneurship techniques. Simultaneously, due adherence has also been taken by the
Centre selecting and identifying the appropriate market availability, exploring the details of
the marketing system say to the existence of the rural market, collaborating with Indian Army
for the proposed project area and has also taken the initiation for the better market link up and
tie up by collaborating, ultimately providing the solution for better economic standardization of
the poor tribal farmers.

(b) Science and technology competency of the project:

Karmabhoomi is ensuring the following specialized components of science and technology
while to implement the project in the area. Maintaining the well defined partnership with the
scientific and research institutions like IITs, IIMs, NIFT and VIT for the engagement in the project.
Due attention may be preferred for the better utilization of the scientific devices and
instruments while running the processing unit. The entire project will be based on the
appropriate science and technology guidance and supervision of the experts.

(c) Linkages with institutions/resource persons/R&D agencies for technical back up in following
the format: -

Name of Experts Area of specialization

I. DR. Kashmir Singh : Community building
(Retd. ADG, IPS)
II. Mr. Aditya Singh : Bio-technology
(V.I.T)

III. Mr. Akhil Sood : Economics and Law

(Delhi University)

17
 Name of Experts Area of specialization

IV. Mr. Ankit Jain : Bio-technology

(V.I.T)

V. Mr. Mahesh Kumar : Consultant PWC New Delhi

(Merger and Acquisition)

VI. Mr. Naveen Kumar : Operation Management

: (Sr. Manager Jindal Steel and Oil)

VII. Mr. Paramvir Ahlawat : Graduate NIFT Mumbai

VIII. Ms. Versha Verma : Branding and Marketing

(NIFT Delhi, IIM A)

(d) Details of the projectimplementation site and other relevant data.

The project implementation site is divided under various zones. The zone-I
comes under Turtuk, similarly other zones will be worked under the same
pattern on the basis of the identified zones.

*Production in Tonnes: 400 Ton Raw Apricot

(*Preliminary research conducted by Karmbhoomi and FPC Pvt. Ltd.)

(e) Location of Satellite units linking Central Processing Unit:

Zone -1

TYAKSHII

THANG COLLECTION Satellite unit situated in

Turtuk-Chulunkha

TURTUK
COLLECTION

CHULUNKHA BOKDANG

18
 (f) Flow Chart for the Activities

Grower / Gathers

SHG activity for collection

Zonal Centre Zonal Centre Zonal Centre Zonal Centre

Collection and Collection Collection and Collection and
Payments Payments Payments
and Payments

Sorting according to quality

Transfer the raw material to satellite unit

Processing in different section with appropriate equipments and machinery

Packaging

Marketing Marketing
Storage

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(g)Satellite processing unit: work flow

1. Separating stone from apricot.

2. Solar machine drying, Sun drying.
3. Quality control
4. Packing and labeling

(Stones/seeds of apricot)

1. Separating kernel from

Collection/Quality Check/ stone.
sorting 2. Quality control
3. Oiling section.
4. Scrub section.
5. Cream section.
6. Packing and labeling

(Stones/ seed of apricot

1. Separating stone from apricot

2. Pulping section
3. Jam section
4. Juice section
5. Quality control
6. Packing and labeling
Storage/ Marketing

 Build up the linkages by the SHGs with community to bind up the local growers / gatherers in a
chain of collection for standardized and better produces

 The plan of action and time schedule of Activities is designed in consultation with the target
group, resource persons focusing the attentions for the post project activities.

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 9. Time schedule of activities giving milestones.

A A B A C C D C
A A

0 – 120 Days 0-30 days 60-150 days 0-120 days

1st year
Layout and Finalizing Utilization and Production of
completion of Electric and Trail Selected items
the Building water supply production

Order and fitting Testing of water Quality control Training of technicians of

of the as per FPO norm and training Product utilization,
equipments standardization, market
and FPO application by
technologists and
consultants

Selection Trail Set up satellite Apply for FPO license and

Training of production units and field label for final product
Master Trainersand training of Training of display
and the master SHG members
Technicians trainers and lead
SHG women at
Central processing
unit.
SHG lead women Field training of Market Study Set up market strategy
Self-Help product display for rural markets and city
women Group markets
by master trainers
2-3 year
Maintain apricot Bulk Procurement and processing Seed Processing
tree

Grow new trees Product standardization Product

on the use less Packaging standardization
land available in Labeling and Packaging
the villages. Marketing Labeling and
Marketing

21
 Feb - April July – Sept Oct – Dec

Activity chart: A

C
A
D

0 day 30 60 120 150

22
10. Description of each process with human resource requirement:
1. Procurement of the raw material from different villages neighboring turtuk:

Raw material for the proposed plant is apricot Apricot this is procured once in a year. So procurement
process and channels should be effective. This raw material will be procured from different villages
neighboring Turtuk.

There will be collection of apricot in each village with the help of local people at one place in that
particular village. Head of the village would be responsible for this process as this activity is providing
earning opportunities to the villagers. Then after the collection of apricot in all villages, we will
transport this collected apricot to our central storage department in the plant.

After the procurement of raw material, real manufacturing starts, there will be many departments
within the plant for the systematic production, these departments are mentioned and explained
below:

2. Raw material sorting:

Room for sorting raw apricot depending upon the quality collected from different parts of the region.
In this room different sections will be made to segregate different types of apricot. Human resource
will take care of raw material and maintain register for all the transactions.

3. Separating room:

Separation of the seed from raw apricot would be done in this section. Most of the work is hand done.
To process the required amount of apricot per week the number of labor required, 5 Worker, 1 in
charge and 1 supervisor is needed, to keep the record and check the workers.

4. Pulping, jam and juice section:

This section the storage of different quality of apricot will be done, 8 workers with 1 in charge, 1
supervisor and 1 technician is needed, to keep the record and check the workers for every quality of
apricot and seed.

5. Drying section:

In this section the apricot will be dry by using solar and sun drying using glass house, this section will
have three sub-sections for drying different quality of apricot. The machines with a capacity of 70kg per
batch will be installed in these section, a batch of 70 kg will be dried in 3 day time. Drying will be done
by solar dryers and sun drying. Different quality of apricots will be packed accordingly; the barcode and
the price tag will be put on the packed article. 6 Worker, 3 in charge and 3 supervisors are needed, to
keep the record and check the workers of each section, and 3 more inspectors are required to check
the quality of output.

23
 6. OIL, cream, scrub section and packing:

UNIT 2: COS (cream oil and scrub)

Oil extraction scrub making cream making Packing

The extraction process will be done in the winter season as it’s easy to store the seeds and seeds have very
less chances to get spoiled. This section is for extracting oil from seeds, the section is divided into different
subsection for different quality of oil. The oil will further use in the manufacturing of apricot cream and the
residue left after oil extraction will be use for manufacturing apricot scrub.

Packaging oil depending upon the quality of the oil in plastic bottles, putting labels and barcode on the
same will require human resource.

7. Inventory:

In this section finished goods will be kept with different sections depending upon the quality and targated
customer, which could be transported to the showrooms directly.

24
 8. Marketing and retailing of the finished goods under brand name “Julley”

Finished gods will be launched in market under the brand name Julley. This brand will be the symbol
of quality, purity and competitive price of the products we are offering. This brand will attract
customers by different means of marketing.

Steps involved in the brand development are:

Introduction to the values of the brand, like: C.S.R., Fair trade, rural development, cultural heritage,
purity, quality, better price etc..

Marketing of the brand nationally and internationally by:

• Advertisements

• Internet

• Banners, hoardings, sponsorship and other Media.

• Govt. support

• Lucrative offers on the products.

A documentary is in the finishing stage for the launch of Julley on various media and social
networks with the collaboration of all the major colleges and Universities of India.

9. Higher level management/Managing board/administrative:

It will consist people having knowledge about this field and industrial experience with good education
background. This board will be responsible for the decision making, problem solving and smooth
functioning of the plant on a bigger level (long term approach). It will be the top level management. All the
reports will be shown to this committee and approval of any report will also be done by this panel.
Management of human resource at higher level will also be its main concern.

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 10. Planning team:

It will consist of 5 members and the role of this team will be to plan what to do, when to do and how to do.
1 member will take care of whole procurement process and storage room planning. 2 members will plan
about the working in different departments in the plant, production issues, labor issues, maintenance
issues, training issues etc. Remaining 2 members will plan about dispatching the finished products. These 2
will be concerned about brand promotion, sales activities, customer relations and other retail related
activities. Reports generated by these 5 planning members will be presented in front of managing board
on weekly basis and approval is to be taken from them.

11. Commerce team:

This team will take care of company’s accounts and weekly transactions. Monthly reports and annual
reports will also be generated for accounts purposes. Salary, expenditure, revenue generated etc. will be
taken care by this team.

Activity/Depart Time Unskilled semi- skilled executives Top

ment Duration skilled
1 Procurement 1 4 0 1 0 0

2 Raw material 1.5 10 5 1 1

sorting
3 Separating room 1.5 10 5 1 1

4 Pulping, jam and 2 16 8 4 2

juice section and
Packing
5 Drying section 2 10 5 2 1
and Packing
6 OIL, cream, 9 10 4 1 1
scrub section
and packing
7 Inventory 9 4 1 1 1

8 Marketing and 12 0 0 4 2 1
retailing
9 Planning team 12 0 0 2 1 1

10 Higher level 12 0 0 0 0 2
management
11 Commerce team 12 0 0 2 1 1

Total 64 28 19 11 5

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Financial Estimates:

List of the costs (fixed) that would be required during setup of AP1

1. Feasibility study cost : ` 2,25,000*

2. Administrative costs : ` 3,91,000*

3. Training costs

Targeted no of people to be trained : 40

Batch size of trainees : 20 persons
No of batches : 40/20 = 2 batches
No of trainers required per batch: 3 persons
No of days of training for each batch: 60 days
1. Trainers compensation (per diem) @ Rs 600 per day = 60 x 3 x 2 x 600 = Rs 216,000
2. Trainers travel costs (Flight tickets, taxi etc.) @ Rs 15,000 per trainer = 3 x 2 x 15000 = Rs
90,000
3. Trainers stay and food expenses @ Rs 400 per day = 60 x 3 x 2 x 400 = 144,000
4. Stipend to trainers @ Rs 50 per day = 60 x 2 x 20 x 50 = 120,000
5. Training Equipment purchase and rental = Rs 220,000
6. Consumables, electricity, fuel, heating equipment @Rs 500 per day = 60 x 2 x 400 = 48,000
7. Overheads and Misc = Rs 20,000
8. Total = Rs 858,000

Total cost for training ` 858,000

4. Plant setup cost includes:

1. Land cost @ Rs 3000 per Kanal for 20 kanals
(State govt lease rate for 99 year lease)
` 60,000
2. Building cost “Green houses with fans and other required infra.” = ` 2,200,000
@Rs 2000 per Sq.Mt = 2000*1100 sq mtr of covered area

5. Machines and other tool cost, fixed cost

3. Drying machines @ 80,000 per (4) machines = 4*80,000= ` 320,000
4. Oil extracting machines(2 units) @ Rs 70,000 = `140,000
5. Apricot candy making machine = `145,000
6. Apricot cream making machines(2 units)@ Rs 65,000 per machine = `130,000
7. Juice making machines(3 units) @ Rs 50,000 per machine = `150,000

*Cost already accrued by Karmabhoomi and FPC Pvt. Ltd. Details of which can be provided.

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28
 8. List of other machines with specification:

S. No Equipments Specification Quantity Price in `

1 Mini Boiler, Diesel / One 80,000
Biomass fired and
Water Tank.
2 Steam Jacketed Kettle 50 liter One 44,000
Steam retort 200 liter One 135,000
Pulper 120kg/hr Two 244,000
Mixer grinder 2 kw. Two 400,000
Drying racks 2 ft. * 6ft 200 Nos. 200,000
Drying baskets 1sq. ft. 1200 Nos. 63,000
Stone separator 3 kw. Two 90,000
Purveriser or Fruit mill 2 HP One 112,000
Weighing Pan 20 Kg One
Container food grade - 50 Kg 20 Nos. 14,500
Carboy
Utensil – Stainless 10 Sets 7,500
steel with knife, spoon,
ladle etc.
Heat seal machine for Pouch sealing Six 72000
pouch
Crown corking machine Four 32000
PPRO cap sealing Four 36000
machine

Total 15,30,000

Total (Fixed) cost: A+B+C+ 1+2+3+4+5+6+7+8 = `61, 49,000

(*list of retails and whole-sales are given separately.)

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11.2 Variable Cost

Cost occur per year starting from year 2012-2013

1. Raw material procurement cost for 400 ton @ `17.5/ kg. = ` 7,000,000

2. Transportation cost = @ `1/kg for local area + ` 8/ kg for Delhi/NCR

For 350 tons of raw+ 100 tons of processed

= ` 350,000+ ` 800,000 = ` 1,150,000

3. Power and fuel cost= @ ` 0.20 per kg of processing

= ` 0.50*350000 = ` 175,000

4. Storage, maintenance and housekeeping cost @` 0.60 per kg.

`0.60*350,000 = `105,000

5. Packaging cost = Average @`7 per kg, Per liter

For 100,000 kg/liter total packaging cost = ` 7*100,000 kg. = `700,000

6. Wages and salaries:

Human resource requirement / activity/Departments:

Base* Average High

Human power Number Wages/month Wages/month Wages/month
Unskilled 72 4000 6000 8000
semi-skilled 33 6000 8000 10000
skilled 23 10000 15000 18000
executives 16 20000 25000 30000
Top management 5 35000 50000 75000
Manpower Number Good Average Worst

*For base year 2012-2013, Market survey and report of NREGA’S.

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Total wage distribution according to skill contribution and duration of employment.

S.No. Activity/Department Best Average Worst

1 Procurement 26000 39000 385000
150000 210000 267000
2 Raw material sorting
150000 210000 267000
3 Separating room
384000 540000 680000
4 Pulping, jam and juice section and Packing
220000 310000 392000
5 Drying section and Packing
846000 1188000 1512000
6 OIL, cream, scrub section and packing
468000 648000 810000
7 Inventory
1380000 1920000 2484000
8 Marketing and retailing
900000 1260000 1692000
9 Planning team
10 Higher level management 840000 1200000 1800000

11 Commerce team 900000 1260000 1692000

Total Wages 6264000 8785000 11981000

Total wages and salaries (Average) = `8785000

7. Brand development and promotion cost

@ `120,00 per month) = ` 1,440,000

8. Overheads = ` 525,000

Total variable cost (1+2+3+4+5+6+7+8) = ` 19,880,000

Total investment required

Non-recurring costs + 9 months of operating costs

(6,149,000 + 9/12 x ` 19,880,000)* = `21,089,000

*It is assumed that the cash flows will start after 9 months of incurring operating
costs

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 12. Techno-economic viability/cost-benefit analysis:

Product Range Unit Projected Quantity

(70% of total
production)
1a. Dry Organic Apricot (with seed) Kg. 15,000

1b. Dry Organic Apricot (without seed) Kg. 15,000

2. Organic Apricot candy Kg. 2,000

3. Organic Apricot oil Litre 2,000

4. Organic Apricot cream Kg. 800

5. Organic Apricot scrub Kg. 26,800

6. Organic Apricot jam (without sugar) Kg. 20,000

7. Organic Apricot juice (without sugar) Litre 20,000

Obtained From Factor of Conversion Input Qty

1a. Raw Apricot 20% 75,000

1b. Raw Apricot 17.6% 85,227

2. Pulp 9.6% 20,833

3. Kernel 12.00% 16,667

4. Kernel 6.0000% 13,333

5. Stone + Kernel Residue (after oil 100.0% 26,800.0

extraction)
6. Pulp 22.00% 90,909

7. Pulp 35.200% 56,818

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After taking 21,212 Kg. Wastage in operations. 328,788

Product Worst Case Base Case Best Case

Rate Value @ 70% Rate Value @ 70% Rate Value @ 70%

`/kg./ltr. ` `/kg./ltr. ` `/kg./ltr. `

1a. Dry Organic 140 175 300 4,500,000

Apricot (with seed) 2,100,000 2,625,000
1b. Dry Organic 200 200 450 6,750,000
Apricot (without
seed) 3,000,000 3,000,000
2. Organic 200 250 325 650,000
Apricot candy 400,000 500,000
3. Organic 1,000 1,500 2,000 4,000,000
Apricot oil 2,000,000 3,000,000
4. Organic 2,000 3,000 4,000 3,200,000
Apricot cream 1,600,000 2,400,000
5. Organic 150 150 250 6,750,000
Apricot scrub 4,050,000 4,050,000
6. Organic 175 200 300 6,000,000
Apricot jam
(without sugar) 3,500,000 4,000,000
7. Organic 70 100 110 2,200,000
Apricot juice
(without sugar) 1,400,000 2,000,000

18,050,000 21,575,000 34,050,000

The following article will be produce out of the outer shell and thick residue comes out as waste during
milling of apricot kernel. The processing plant is based on Buddhist Economics.

*Total sale price (Consideration 70% of the total production) = `21,575,000

Including the waste during operations

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34
12.1. Total sale price in the year 2012-13 after the implementation of Phase- 1, setup of
processing plant.

7. Organic Apricot
Sale Value 1a. Dry Organic
Apricot (with
juice (without
seed)
sugar)
12%
9%
6. Organic 1b. Dry Organic
Apricot jam Apricot (without
(without seed)
sugar) 14%
19%

2.
Organic
3. Organic Apricot Apricot
5. Organic Apricot
oil candy
scrub
4. Organic Apricot 14% 2%
19%
cream
11%

12.2. Total sale price of the articles after implementing phase-2 of project “Julley”.

Sale Projections
300,000,000

250,000,000

200,000,000

150,000,000
Rupees
100,000,000

50,000,000

0
2012-2013 2017-2018 2020-2021

35
12000000

10000000

80000000

60000000

40000000

20000000

0
Fixed cost Variable Sale 2012-2013 SALE 2017-2018

( Apricot flower in spring)

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13. Our major customers:
1. Indian Army.
2. Major retail outlets in Delhi/NCR, Chandigarh, Ludhiana, Jalandher like Reliance Retail, Big Bazar
and whole sale market of Chandni Chowk etc.
3. Diwali gift retail buyers in festive season of October-November.

13.1. Our competitive edge:

• Integrated plant.

• Quality, Purity and cheaper rates.

• Organized production and retail.

13.2. Main assumptions:

• Availability of raw material in that region, projected in the Horticulture dept. reports and survey
conducted by karmabhoomi team.

• 70 % Sale of the manufactured products (as calculated by demand in present conditions) will not
fluctuate due to uncontrolled reasons.

• After skill impartation, the required skill level would be achieved in given frame of time.

• The project cost assumed shall not accelerate during the project implementation time frame.

• Cooperation and willing participation by the local population as workers suppliers and
beneficiaries in the project.

13.3. Risk assessment:

 The production of these products are the in the border area so if there is any disturbance
between the country the production will stop and the infrastructure will get a huge loss.
 The roads to this region get closes often in the winters time, although the air
transportation keeps open all the yearlong and potential collaboration with Indian Army
can further reduce the transportation cost.
 The apricot market in India is very niche and the product awareness is low as compare to
other consumer products in India.

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 14. Comment on the likely impact on adjoining areas/society.
The establishment of the food processing unit would likely to be an impact on the adjoining areas/society
and would stand to be an exemplary replica to change the life-style of the indigent and needy ST
community encouraging their fullest participation and involvement in the food process unit generating the
employment opportunities, mainly during the lean period, as to say also in whole of the year, providing the
best bases for the economic livelihood and enhancement of income source to lead a better life in the
society. The project also would stand as a replica attracting women folk of the district stand as a
demonstrative unit in the eyes of the district administration, DIC and other community development
agencies, to initiate the similar process in the other corners of the district as per the suit and project
availability, in fulfilling the needs and complying the dire economic consequences of the people, say
the tarnishing and grim economic reality of the district. Above all to say, the impact of the unit would
stand as an ideal nomenclature for the women empowerment process.

15. Comment on the possibilities of the activity becoming self-sustainable.

Project Julley has designed on the principles of self-sustainable model in Buddhist economics of
self sustainable model.
Project “Julley” is inspired by Mr. George Soros and Mr. Jim Roger’s investment model in the
current economics.
 We are investing in the basic skills and local commodities, getting wasted in the absence of
sustainable infrastructure.
 The profit generated by the project will invested in the education of the local people an
education based on the dynamic philosophy of life.
 Karmabhoomi has taken an initiation to educate the youth of Turtuk, around 320 students
and school dropouts are getting education with the collaboration of premier institution
and student bodies.
Break-even of the project:

Variable cost/ year for the financial year 2012-2015 = ` 15,467,600

Fixed cost for the financial year 2012-2013 = ` 6,149,000

Total sale for the for the financial year 2012-2013 = `21,170,000

The plant AP-1 will reach the break even in less than 2 years, moreover the construction of road between
Kargil and Turtuk, Kargil and Sri-Nagar ,completion of rail route to Sri-Nargar will reduce the transportation
and maintenance cost to minimal level.

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 (Self sustainable model of project “Julley”)

Also, there is a conformity on the possibilities of the activity become self-sustainable because the
establishment of the food processing unit has been initiated in the project area basing on the proper
identification, initiating the baseline survey, interacting with the community and interfacing with the line
departments of the district, to ensure the establishment of the unit in the said locality after the appropriate
selection of the focal sites linking up with the satellite units separately in three triangular areas of the
block, finally linking up to supply the raw materials to the unit.

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16. Suggested parameters for monitoring effectiveness of intervention during and after the project.

For the effective implementation of the project, the following parameters have been adopted
during and after the project.
a) Internal monitoring

The internal monitoring technique is being maintained by the project implementing agency as well as
members of the SHGs for the smooth running of the food processing unit. The
responsibility of the collection of the raw materials from the satellite units shall also be monitored by
Karmabhoomi and SHGs of the concerned area for the procurement of the horticulture crops in times of
production for its arrival at the Central processing unit.

b) External monitoring

The project consultant and technical experts of the granting organization and the experts from various
primer agencies consultant and consultants from Karmabhoomi from time to time, may also monitor over
the smooth running of the units providing the technical guidelines support to the beneficiaries.

After the completion of the project, the entire process of the food processing unit would absolutely be
handed over to the beneficiaries, indirectly under the supervision and monitoring of the project
implementing agency (Karmabhoomi) until their expertise in the concern sector.

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16. BUDGET*

BUDGET ESTIMATES : SUMMARY

(In Rupees)

A. Recurring : ` 6,149,000

B. Non-Recurring : `19,880,000
Permanent Equipment

Grand Total (A+B) : `21,089,000

Organization Contribution (20% of Total) : ` 4,272,500

Total Budget Requested : ` 16,816,500

Financial Year : 2012-2013

*After the approval of the project, installation charges, inland transport and budgetary
quotations would be submitted by the project implementing agency.

41
17. Details of Purposing Organization:

Organization Name: KARMABHOOMI

Address: 15 Bharat Vandana, Sector 19, Dwarka New

Delhi 110075

Web Address: www.karmabhoomi.org

Accounts Details: A/C Name, KARMABHOOMI

Dwarka Branch, New Delhi 110075

911010046542815

IFC Code: UTIB000027

Details of the contact person: Atul Kumar

atul@karmabhoomi.org

+919968378289

+919622973301

Siddharth Tiwari

siddharth@karmabhoomi.org

+918826747666

About karmabhoomi

Karmabhoomi is an open society, registered under society’s registration act 1860. It works for
socioeconomic development of rural India. We are currently focused on the education and
creation of economic alternatives in remote parts of India.

We intend to synergize the vastness and diversity of India in such a way that it results in the
socio-economic development of the country. We cherish and respect the thoughts, culture,
language, religion or broadly speaking, the existence of every individual and want to accomplish
a unified society seasoned with love and harmony.

42
Current status of the project:

 All the feasibility phases of the project has been completed by the experts and members
of karmabhoomi.
 A documentary “Finding Turtuk”, the priview was launched in the year 2011 will be
completed by May 2012.
 Karmabhoomi has signed Memorandum of Understanding with Village Representatives
of Chulunkha, Turtuk, Tyakshi and Thang.
 The organization is also working for the Education development of these Villages.
 A photo of exhibition in May 2012.
 The logo to represent the brand “Julley” was exhibited in the most innovative design
exhibition.
 The profit from food processing will further be invested in the future of children these
villages.
 The report of projected has been verified by the expert consultants.
 A team of experts are consciously working on the project in the harsh climate of winter
season of Ladakh.
 The Land area and all the major details have been cleared from the concerned
departments.
 A cooperative society has been formed for the smooth and self-governing functioning of
the plant.
 Project “julley” will be shown as a documentary movie in various institutions and
universities of India and abroad to incline the intrest of youth in nation and community
building.

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(Copies of MoU signed with the various village Panchayats)

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The organization welcomes any kind of investment, contribution, comment and
suggestion.

infro@karmabhoomi.org

atul@karmabhoomi.org

www.karmabhoomi.org/projects.php

(Brand “Julley”, designed by PMD India)

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