PROJECT REPORT ON

FRUIT FLAVOURED CORN BISCUITS

(Challenging task)
SUBMITTED BY
P. RAJESHWARI
CAJA/2013-50

AGRICULTURAL EXPERIENTIAL LEARNING

PROGRAMME
Under the guidance of

Dr. V.RAM REDDY

PROFESSOR JAYASHANKAR TELANGANA STATE AGRICULTURAL

UNIVERSITY
COLLEGE OF AGRICULTURE, JAGTIAL

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 PROFESSOR JAYASHANKAR TELANGANA STATE AGRICULTURAL UNIVERSITY

COLLEGE OF AGRICULTURE, JAGTIAL

AGRICULTURAL EXPERIENTIAL LEARNING PROGRAMME

CERTIFICATE

Certified that this is a bonafide record of practical work done and data collected
by Ms. P. RAJESHWARI, I.D. No. CAJA/2013-50 during second semester of
final year B.Sc.(Ag.) course during the academic year 2018-2019.

EXTERNAL EVALUATOR Signature of Director

Dr. V. RAM REDDY

Date:-

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 ACKNOWLEDGEMENT

My sincere thanks to Dr.V.RAMREDDY, Director of AELP PREPARATION

OF VALUE ADDED PRODUCTS AND ITS MARKETING Unit, College of
Agriculture, Polasa, Jagtial. The Guide of the project for guiding and correcting
various documents of mine with attention and care. He has taken pain to go
through the project and make necessary correction as and when needed.

I express my thanks to Dr.G.PADMAJA Associate Dean College Of

Agriculture, Polasa, Jagtial. Professor Jayashankar Telangana State Agricultural
University, for extending the support.

My deep sense of gratitude to Dr.D.KARTHIK, Asst.Professor,

Department of AGRI EXTENSION, College of Agriculture,Polasa,Jagital for
his support and guidance.

I would also thank my Institution and my faculty members without whom

this project would have been a distant reality. I also extend my heartful thanks
to my family and well-wishers

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4
CONTENTS

Introduction

General information

Analysis of alternatives

Marketing strategy

Technical plan

Financial analysis

Economic and social variables

Lay out

SWOT analysis

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 INTRODUCTION

 Food processing industry is the viable sector for budding entrepreneurs, because the
consumer preference will dynamically changes, so that wide range of product
differentiations will be possible, they can play their own unique role in the market.

 All these situations are grabbing by the entrepreneurs, which provided opportunities
to produce healthy, energy rich, ready to eat food products to satisfy themselves as
well as the consumers.

 One of the most disturbing and prevalent nutritional problems in the developing
countries ,is protein-energy mall nutrition (FAO,2001).the cause has been attributed
to many factors including has a high cost of first class proteins.

 Biscuits prepared from corn flour has become very popular in most developing
nations of the tropics especially among children and adolescents

GENERAL INFORMATION

NAME OF THE FIRM:FRUIT FLAVOURED CORN BISCUITSENTERPRICE.

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BIODATA OF ENTREPRENEUR

NAME P. RAJESHWARI

AGE 22

QUALIFICATION B.SC (Ag.) FROM PJTSAU,COLLEGE OF

AGRICULTURE, JAGTIAL

CAPABILITIES TECHNICAL KNOWLEDGE,

COMMUNICATION SKILLS,

SELF-CONFIDENCE.

EXPERIENCE UNDER AELP AS A PART OF COURSE

CURRICULUM

ADDRESS MAHABUBABAD, WARNGAL

DESIGNATION MANAGING DIRECTOR,

FRUIT FLAVOURED CORN

BISCUITSMANUFACTURING UNIT.

GEOGRAPHICAL LOCATION: MAHABUBABAD, WARNGAL

ENTERPRISE PROFILE:

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NATURE OF ENTERPRISE: AGRO PROCESSING ENTERPRISE

TYPE OF ENTERPRISE : SMALL

YEAR OF ESTABLISHMENT: 2018

REGISTRATION:Applied For District Industries Centre

VISION OF ENTERPRISE: To supply quality fruit flavoured corn biscuits

OWNERSHIP :Individual

PAST EXPERIENCE:Fresher

CORE PRODUCT AND DETAILS: CORN

SUBSIDIARY PRODUCTS: FRUITS

AREA COVERED:PARTS OF WARNGAL, MAHABUBABAD.

POSITION OF COMPANY:FRUIT FLAVOURED CORN BISCUITS SELLING

COMPANTES.

ANALYSIS OF ALTERNATIVES

My self as a graduate in agriculture so I can start many of firms to lead my

independent life

 Vermi compost unit.

 Hybrid seed production in rice.
 Cotton ginning mill.
 Organic farming.
 Bio herbicide.
 Tissue culture in Banana.
Past performance:

 No such enterprise till now.

Present status:

 As our products have slight diversification from present products.

 Demand is more as they made from fruit flavor which don’t found before it.

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Problems:

 This industry require high cost machinery, Skilledlabour, Power supply

throughout the working hours.

CONSTITUTION AND ORGANIZATION

 Our enterprise is registered and registration certificate is taken from District

Industries Centre (DIC).

 Medium scale industry.

 Individual mode of entrepreneurship.

Product details:

 Main Product: Available in gram packets.

 ½ kg packets along with nutrition values on the back of the cover.

MARKETING STRATEGY

 We just want to attract the market by improving its quality of corn biscuits with
fruit flavors and introducing different shapes of biscuit and packing into markets
for consumer preference.

 Exhibitions.

 Whole sale and retail markets.

 Advertisements through print media.

 Distributing packets free of cost in crowded areas to develop the demand.

Demand &Supply position: Demand is more as they fruit flavor which don’t found
before it.

 As this biscuits have longer shelf life and more nutritive.

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  We are here enter in this industry profile to fill up this gap which offer new
variety of corn biscuits with fruit flavors.

 In Telangana there are no enterprises established in the corn biscuit production.

TARGET SEGMENT: People of all ages

MODE OF TRANSPORT: Railway for raw materials, Tata ace for finished products.
BRANDING OF PRODUCT: Super crunchies
PRICE OF PRODUCT: Rs.4 for 50grams
SALES IMPROVEMENT: 1st and 2nd
PROMOTION MEASURES:Social media
ATTRACTING THE CUSTOMERS: Coupons,Discount
MANAGING SEASONALITY FACTORS: There is no effect of season on our
enterprise as the main raw material i.e corn, which is available throughout the year in
some places of Telangana.
 The fruits are perishable so we collect fruits which are available in particular
season.

 But the continuous processing of all the available material is a big task.

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Market share Distribution

Un
Organised
35%
Organised
65%

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 TECHINICAL PLAN

SITE:
• Located at Thorrur (Mdl) ; Mahabubabad (District).
• Survey number-80
• Area –4 acres
• Building – single storey RCC
• Suitable for our company for easy market access and procurement of raw materials
from near-by villages.
• We applied for a no-objection certificate from municipal corporation Mahabubabad.
PHYSICAL INFRASTRUCTURE

Raw materials:

 Major is corn, wheat flour, glucose sugar,cheese,

fruits like
banana,mango,orange,pear,strawberries etc.

By products:

 Banana and mango peel which are fed to cattle

as cattle feed.

 Corn (AP)

 Wheat(MH)

 Fruits: Mango (AP&KA)

 Banana(WB&MH)

 Pear(WB)

 The left out material of the corn is send to the poultry.

Labour:

Labour Number

Skilled persons 10

Unskilled persons 8

Technical officer 1

Guards 2

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 Drivers 2

Manager 1

Total 24

UTILITIES:

Power:

 Three phase power is used,10 units per day during the season
Water:

 Mineral water for production & processing.

 Water from Bore wells for cleaning purpose.

Pollution control:

 Pollution is controlled by using RECOVERY FURNACE which collects the

chemicals mostly caustic soda

 We got Pollution free certificate from State Pollution Control Board (SPCB).

Communication system:

 Telephone,
 Internet,
 Exhibitions,
 Trade fairs,
 Melas, etc
Transport facilities:

 Rail way for raw materials(fruits).

 Tata ace for harvested & finished products.

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 Manufacturing Process

Mixing:-

 In this process all ingredients like flour, fat, sugar etc., are put together in the right
proportion for dough formation.

 The ingredients are fed into the mixers, where they are mixed properly to prepare
the dough.

 Normally mixing time is between 10- 15 min but it usually depends upon flour
characteristics. It is performed in two or three stages with different mixing speed.

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Fermentation:-

When the fermentation is correctly achieved, depending on the quality of flour among
other things, the baker will obtain the proper external and internal characteristics
(grain and texture) suitable for a determined finished product.

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Baking:

It is the third stage in biscuit making process, where the moulded biscuits are put into
the baking oven on required temperatures.

 Various methods of heating like conduction , convection and radiation are used in
the ovens.

 These ovens also have dampers to control moisture inside the oven section.
Biscuits are carried on wire mesh band in oven.

Cooling:-

 After baking biscuits, they are passed on to cooling conveyors for natural cooling
prior to packing.

 In the conveyors, the temperature is brought down to room temperature.

 Natural cooling is preferred to forced cooling as it maintains the texture quality of

biscuits

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Different shapes of biscuits:-

 With floured biscuit cutter, cut out biscuits - keeping cuts close together.

 When cutting, use a straight downward motion and avoid twisting the cutter as
biscuits may rise unevenly.

 Biscuits can also be cut with a knife into rectangle, square or triangle shapes.

Packing:-

After cooling, the biscuits are stacked and fed into packing machine.

 These biscuits can be availed in different packaging materials in different packs

like slug packs, pouch pack or family packs.

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  These packs are then put into secondary packings like cartons for transporting to
the retailers.

 Packing material that are used for used for biscuit packaging are BOPP,
Laminates (pearlised or metalized), pouches.

Biscuit packing

Machine

Biscuit packing machine:-

 Corn fruit biscuit packing machine TCB-250B

 High speed max.230 packets/min

 Short delivery 10 days

Capacity of plant:

 100kg/day

 Technology selected: simple and latest

 Technological advices from national unit of nutrition.

Technology selected:

At present the technology we are using here is suitable to run our firm. But we specify that
there further necessity to upgrade the technology in future.
QUALITY CONTROL:

Product must meet PFA regulations. However, ISI specification for peanut butter is IS :
9037:1979. It may also be manufactured as per the consumers choice of taste and aroma.
Quality is checked in the industry by the quality control system.

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The aspects that are tested are:

 Quality of biscuit

 Nutritional values of biscuits

RESEARCH AND DEVELOPMENT:

Diversification is must for any enterprise either to sustain in the market or to catch the
customer’s tastes and preferences.

 We conduct our research in research station in Warangal.

PRODUCT DETAILS

Availability of packets:

Packet wt. Rs.

50g Rs.4

100g Rs.7

200g Rs.14

500g Rs.35

Packet description:

 Nutritional status
 Manufactured date
 Expiry date
 Price
 Weight
 Ingredients

FINANCIAL ASPECTS

CAPITAL COSTS AND SOURCE OF FINANCE

 Government of INDIA and TELANGANA are ready to provide a financial

assistance of more than 135 lakh considered if the project is found to be
appropriate.

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  This amount is provided under the FOOD CORPORATION OF INDIA.

 Today many banks are providing the loans too @ 12-14 % interest rate.

COSTS AND FINANCE

FIXED CAPITAL:

Fixed capital Amount in Rs.

Land 3,00,000

Building 10,00,000

Total 13,00,000

Machinery & Equipment:

S.No Machine Cost

1 Mixing &baking machine 10,00,000

2 Filling machine 18,00,000

3 Packing machine 12,00,000

4 Packing machine 5,80,000

5 Total 45,80,000

Other expenditure:

S.No Invested on Amount in Rs.

1 Computer 30,000

2 Furniture and vehicles 10,00,000

3 Generator 10,00,000

4 Installation cost 2,00,000

5 Total 22,30,000

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 Total fixed cost =13,00,000+45,80,000+22,00,000

=81,10,00

WORKING CAPITAL

S.No Details Amount in Rs.

1 Raw material 27,00,000

2 Utilities 98,000

3 Postage& stationery expenses 27,000

4 Consumable stores 20,000

5 Other expenses 1,75,000

6 Total 30,00,000

Total working capital =30,000 + 19,28,000

= 49,28,000

Total project investment = 81,10,000+49,28,000

= 1,40,38,000

75% Loan Equity (25%)

1,05,28,500 In our hand 35,09,000

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 PROFIT AND LOSS STATEMENT

S.No Sales 2,00,00,000

1 Cost of goods sold 30,00,000

2 Gross margin 1,70,90,000

3 Operating expenses :

3.1 Salaries & wages 17,64,000

3.2 Lorry lease amount 1,00,000

3.3 Electricity 5,40,000

3.4 Water 39,000

3.5 Advertising 50,000

3.6 Office expenses 50,000

3.7 Insurance 1,20,000

3.8 Maintenance & repairs 25,000

3.9 Total 26,88,000

4 Net operating profit 1,43,12,000

5 Interest expenses 2,40,000

6 Net profit before taxes 1,40,72,000

7 Tax@7% 9,85,040

8 Net profit after tax 1,30,86,960

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 BALANCE SHEET

Assets Rupees Liabilities Rupees

Current assets Current liabilities

Raw material 27,00,000 Land 8,78,000

Cash in hand 10,00,000 Machinery 8,74,800

Cash in bank 25,09,500 Interest 3,40,000

Bills to be paid 5,00,000

Sub total 62,09,500 Sub total 25,92,800

Long term assets: Long term liabilities:

Land 30,00,000 Bank loan 10,52,85,000

Buildings 10,00,000 Total liabilities 1,31,21,300

Depriciation@5% 9,50,000

Machinery 45,80,000 Net worth

Depriciation@5% 43,51,000 Retained earnings 23,58,850

Other assets 22,30,000 Capital 62,58,850

Depriciation@5% 22,18,500 Total net worth 87,17,700

Sub total 1,56,29,500

LOAN REPAYMENT

• Amount of loan taken=1,05,28,000

• Interest @ 12%

• Repayment period=5 years

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 Loan repayment Plan :

Principal Interest Installment Balance

21,05,700 12,63,420 33,69,120 8,42,23,000

21,05,700 10,10,736 31,16,436 63,16,600

21,05,700 7,58,052 28,63,752 4,21,090

21,05,700 5,05,368 26,11,068 21,05,700

21,05,700 2,52,684 23,58,384 00

CASH FLOW STATEMENT

Description Year 1 Year 2 Year 3 Year 4 Year 5

Cash inflows 2,00,00,000 2,10,00,000 2,20,50,000 2,31,52,500 2,43,10,125

Cash out flows 58,82,000 69,88,000 67,89,000 68,93,000 78,83,000

Net cash flow 1,41,18,000 1,40,12,000 1,52,61,000 1,62,59,500 1,64,27,125

Interest 12% 12,63,420 10,10,736 7,58,052 5,05,368 2,52,684

Net profit before 1,40,72,000 1,30,01,264 1,45,02,948 1,57,54,132 1,61,74,441

tax
Tax @ 7% 9,85,040 9,10,088 10,15,206 11,02,789 11,32,210

Net profit after 1,30,86,960 1,20,91,176 1,34,87,742 1,46,51,343 1,50,42,231

taxes
BEP 53.8% 50.4% 47.36% 44.50 % 41.5 %

RATIO ANALYSIS

PROFITABILITY RATIO:

Net Profit
Profitability ratio = 100
Sales
13086960
= 100
20440000
= 64%

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Interpretation:-It indicates the firm’s ability to turn each rupee of investment into
profits.

RETURN ON INVESTMENT:

Return on Investment = Net profit or EBIT/ capital employed

= 14072000/14038000

=1.02%

Interpretation:-The Return on investment 1.02% indicates that for every one rupee of
capital employed we will get net profit of Rs. 1.02%.It indicates that firm is running
successfully.

DEBT EQUITY RATIO:

Debt-equity ratio = Debt/Owner’s equity

=10528500/14038000

=0.75%

Interpretation:-The debt equity ratio 0.75 indicates that for every one rupee of equity
(or) net worth we have a debt of 75 Paisa. As debts are less than equity, it indicates
sound position of business.

BREAK EVEN POINT FOR 5 YEARS

Year TFC/sales-variable cost*100 BEP in %

1 81,10,000/2,00,00,000-49,28,000*100 53.8%

2 81,10,000/2,10,00,000-49,28,000*100 50.4%

3 8110000/2,20,50,000-49,28,000*100 47.36%

4 8110000/2,31,52,500-49,28,000*100 44.50 %

5 81,10,000/2,43,10,125-49,28,000*100 41.5 %

For the first year, Break Even point is as follows

Total Fixed Cost

Break even Point = 100
Sales Projected − Variable Cost

81,10,000
= 100
2,00,00,000 − 49,28,000

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 81,10,000
=
1,50,72,000

= 53.8%

Interpretation:

Break even point of 53.8 %indicates that we start getting the profits after
the sale of 15,70,960 packets of biscuits and 1,57,096Kgs of biscuits.

SALES PROJECTED

 As we are producing 292000 kgs/annum

 Cost of produce is 70Rs./kg

 Therefore total sales

=2,92,000*70

=2,04,40,000

 As we are sold in packets like 100 gram ,500 gram,etc.

 One packet i.e. 100 gram is 7 Rs.

 Sold packet per annum is 29,20,000

ECONOMIC AND SOCIAL VARIABLES

Employment generation:

 The enterprise provides employment to member as already provided in the

table.

 60 members of semi – skilled labour are provided employment.

 The enterprise provides employment to member as already provided in the

table.

 60 members of semi – skilled labour are provided employment.

Local resource utilization:-

 The main raw material being the corn effectively the resource is utilized, human
resource (labour), water etc.

 Development of the area: Roadways has been improved.

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Annexure:

 Equipment required

 Mixing &baking machine

 Filling machine

 Packing machine

PLANT LAYOUT

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 SWOT ANALYSIS

Strengths:

 Highly nutritive and no cholesterol.

 Availability of machinery.

 Good manufacturing practices.

 Low price as compared to competitor

 Offers variety of products under its brand.

 Different sizes of packets are available.

 An experienced team of sales and marketing executives.

 Deep and effective coverage.

 Largest distribution system.

Weaknesses:

 Highly cost of raw material (fruits).

 As fruits are perishable, care should be taken during transportation.

 Breakage of biscuits while delivering to retailers

 No proper replacement system for broken biscuits to retailers

 Improper and irregular supply.

 Shortage of trained techniques.

Opportunities:

 Change in eating habits

 Rising demand for innovative Flavors in packaged foods.

 Favorable Govt.polices.

 Growing population.

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Threats:

 Emerging competition.

 Imbalance price of raw materials.

 Highly advertised brands such as Britannia.

 shifts in consumer tastes away from the firm's products.

 Increase in sale of cheap local bakery products.

 Less customers acceptability.

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Thank you
SUBMITTED BY
P. RAJESHWARI
CAJA/2013-50

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