PM Formalization of

Micro Food Processing Enterprises Scheme

DETAILED PROJECT REPORT

FOR
DEHYDRATED APPLE SLICES PROCESSING

AATMANIRBHAR BHARAT

Indian Institute of Food Processing Technology

Ministry of Food Processing Industries
Pudukkottai Road, Thanjavur, Tamil Nadu 613005
Website: http://www.iifpt.edu.in
Email: info@iifpt.edu.in
Call: +91 4362 228155

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 Contents

Sr. No. Topic Page

The Project at a Glance 3
1 General Overview of Apple production, Clusters, PHM and value addition in India
1.1 Introduction 4
1.2 Origin, Distribution and Production of Apple 5
1.3 Varieties 7
1.4 Health benefits and Nutritional Importance 8
1.5 Cultivation, Bearing & Post-Harvest Managements 11
1.6 Processing and Value Addition in India 16
2 Model Dehydrated apple slices processing under FME Scheme
2.1 Location of Proposed project and land 19
2.2 Installed capacity of Dehydrated apple slices processing plant 19
2.3 Raw Material requirement for The Unit 19
2.4 Manufacturing Process 20
2.5 Market Demand &supply for dehydrated apple slices 21
2.6 Marketing strategy for Apple products 24
2.7 Detailed Project Assumptions 24
2.8 Fixed capital Investments
2.8.1 Plants and Machinery 25
2.8.2 Other Costs 26
2.9 Working Capital Requirements 27
2.10 Total Project Cost & means of finances 28
2.11 Manpower Requirements 28
2.12 Expenditure, Revenue and Profitability Analysis 29
2.13 Repayment Schedule 30
2.14 Assets depreciation 31
2.15 Financial Assessment of project 32
2.16 Break even analysis 33
2.17 Pie chart 35
2.18 Plant Layout 36
2.19 Machinery suppliers 36
3 Limitations of Model DPR & Guidelines for Entrepreneurs
3.1 Limitations of Model DPR 37
3.2 Guidelines for Entrepreneurs 37

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 Project At a Glance
1 Name of the Project Dehydrated apple slices
2 Name of the entrepreneur/FPO/SHG/Cooperative
3 Nature of proposed project Proprietorship/Company/ Partnership
4 Registered office
5 Project site/location
6 Names of Partner (if partnership)
7 No of share holders (if company/FPC)
8 Technical advisor
9 Marketing advisor/partners
75 MT/annum (55, 65, 75 & 90 %capacity
10 Proposed project capacity utilization in the 2nd, 3rd, 4th & 5th years’
onwards respectively
11 Raw materials Apple
12 Major product outputs Dehydrated apple slices
13 Total project cost (Lakhs) 40.18
Land development, building & civil construction 5.3
Machinery and equipments 22.43
Utilities (Power & water facilities) 0.8
Miscellaneous fixed assets 0.9
Pre-operative expenses 0.90
Contingencies 1.20
Working capital margin 8.65
14 Working capital Management (In Lakhs)
Second Year 25.96
Third Year 30.68
Fourth Year 41.83
15 Means of Finance
Subsidy grant by MoFPI (max 10 lakhs) 10.00
Promoter’s contribution (min 20%) 10.44
Term loan (49%) 19.72
16 Debt-equity ratio 1.89 : 1
17 Profit after Depreciation, Interest & Tax
2nd year 87.34
3rd year 105.11
4th year 122.87
18 Average DSCR 2.31
Benefit Cost Ratio 1.92
Term Loan Payment 7 Years with 1 year grace period
Pay Back Period for investment 2 Years

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 Note: All the data/contents of this DPR are taken from the available information on
IIFPT site.
1 GENERAL OVERVIEW OF APPLE PRODUCTION, CLUSTERS,
POST-HARVEST MANAGEMENT AND VALUE ADDITION IN
INDIA

1.1 INTRODUCTION

Apple (Malusdomestica) is one of the most consumed fruit crops in the

world. The major production areas are the temperate regions, however, because of its
excellent storage capacity it is transported to distant markets covering the four corners of
the earth. India is known as the second largest fruits and vegetables producer in the world
followed by China. India, during 2017-18 has produced about 97358 Thousand MT fruits and
184394 Thousand MT vegetables in about 6506 Thousand Ha and 10259 Thousand Ha areas,
respectively (Horticultural Statistics At a Glance, 2018, MoA&FW, GoI). In spite of this, the
per capita availability of fruit in India is 107 gm/day which is below the recommended 120
gm/day. India’s share of global exports of fresh fruits and processed fruit products is also
quite meager compared with other major fruit producers of the world (Bung, 2012).
Unfortunately, fruits and vegetables being perishable in nature get wasted to the tune of 20-
30 per cent in the supply chain due to improper handling, transportation and poor post-
harvest management; and only 2 per cent are processed in to value added products and the
rest is consumed as fresh. Therefore, processing of fruits and vegetables offers immense
scope for wastage minimization and value addition; thus can generate significant income and
employment in Indian agrarian economy.

In India, apple is one of the important fruit crops cultivated in

temperate areas and has huge potential for value addition and entrepreneurship development.
In India, 20-30% of apple fruits are spoiled due to improper handling, transportation and
processing and therefore, processing and value addition is extremely needed. There has been
an increasing appreciation and understanding of the link between dietary fruit intake and

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 improved health in humans. The widespread and growing intake of apples and apple juice/
jam products and their rich phytochemical profile suggest their important potential to
affect the health of the populations.

1.2 ORIGIN, DISTRIBUTION AND PRODUCTION OF APPLE

An apple is an edible fruit produced by an apple tree (Malus domestica).

Apple trees are cultivated worldwide and are the most widely grown species in
the genus Malus. The tree originated in Central Asia, where its wild ancestor, Malus
sieversii, is still found today. Apples have been grown for thousands of years
in Asia and Europe and were brought to North America by European colonists. Apples
have religious and mythological significance in many cultures, including Norse, Greek,
and European Christian tradition.

Apple trees are large if grown from seed. Generally, apple cultivars are
propagated by grafting onto rootstocks, which control the size of the resulting tree. There are
more than 7,500 known cultivars of apples, resulting in a range of desired characteristics.
Different cultivars are bred for various tastes and use, including cooking, eating raw
and cider production. Trees and fruit are prone to a number of fungal, bacterial and pest
problems, which can be controlled by a number of organic and non-organic means. In 2010,
the fruit's genome was sequenced as part of research on disease control and selective
breeding in apple production.

Worldwide production of apples in 2018 was 86 million tonnes. The

leading apple growing country is China, producing about 41 percent of the world's apples,
followed by the United States. In India total apple production was 2326.91 thousand metric
tons in 301.00 thousand ha areas during 2017-18 (Horticultural Statistics at A Glance 2017-
18).

Apple was introduced into the country by the British in the Kullu
Valley of the Himalayan State of H.P. as far back as 1865, while the colored ‘Delicious’
cultivars of apple were introduced to Shimla hills of the same State in 1917. The apple

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 cultivar ‘Ambri’, is considered to be indigenous to Kashmir and had been grown long before
Western introductions.

Out of all the deciduous fruits, apple is the most important in terms
of production and extent. Although there has been 5-6 fold increase in apple production
during the last 50 years, the productivity level is still very low (5.56 t/ha). Apple cultivation
received greater attention by the growers.

About 99 percent of India’s apple area falls under the North Western Hills region, covering 6
districts of J&K (Srinagar, Budgam, Pulwama, Anantanag, Baramullah, Kupwara), 6 districts
of H.P. (Shimla, Kullu, Sirmour, Mandi, Chamba, Kinnaur) and 8 districts of U.P. (Almora,
Nainital, Pithauragarh, Tehri, Pauri, Chamoli, Uttarkashi, Dehradun). In the North-eastern
Hills region, good quality apple is grown in a small area in Tawang belt of Kameng district in
Arunachal Pradesh. The Tawang area is basically a rainshadow belt and therefore, permits a
longer period of sunshine and freedom from heavy rains, making it ideal for apple. Apple is
also grown in Sikkim and Nagaland but the production is not a major success. Presently, a
small quantity of apple produced in India is exported, mainly to Bangladesh and Sri Lanka.

India with its wide range of soil and climate conditions is ideal for growing
large varieties of fruits, both indigenous and the ones introduced from abroad. Today India is
the largest producer of fruits. In India, apple is mostly grown in Jammu & Kashmir,
Himachal Pradesh and Uttarakhand. Apple cultivation also extended to Arunachal Pradesh,
Nagaland, Sikkim. Apples are mostly consumed as fresh fruit but a small part of the
production is processed into jellies, juices, canned slices, candies. The state wise apple
production in India is given below:

Major Apple Producing States in India (2017-18)

States/UTs Area Production
1. Jammu & Kashmir 158.15 1808.33
2. Himachal Pradesh 112.63 446.57
3. Uttarakhand 25.32 58.66

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4. Arunachal Pradesh 4.66 7.35
5. Others 0.28 6.00
Total India 301.04 2326.91
Source: Horticultural Statistics at A Glance 2017-18, GoI

1.3 VARIETIES

Almost all apple varieties need to be cross pollinated, although

some varieties, such as Liberty, Empire, Jonathan, Jonagold, Gala, Golden Delicious, Rome
and Granny Smith are selffruitful, but they still set more fruit through cross pollination.
Therefore the grower should plant different apple cultivars together in the same orchard. Also
there are some cultivars which produce sterile pollen and cannot be used as pollinizers
(Mutsu, Jonagold). Usually, in an apple orchard, every four rows is a pollinizer variety or
within a row, every fifth semi-dwarf tree is a pollinizer. The maximum allowed distance
between the tree and its pollinizer is 25 meters.

Table 2: Apple Varieties Cultivated in India

Category Varieties
1. Clonal rootstocks M 9, M 26, M7, MM 106, MM 11
2. Scab resistant Prima, Priscilla, Sir Prize, Jonafree, Florina, Macfree, Nova Easy
Grow, Coop 12, Coop 13 (Redfree), Nova Mac, Liberty, Freedom,
Firdous, Shireen
3. Hybrids Lal Ambri (Red Delicious x Ambri), Sunehari (Ambri x Golden
Delicious), Chaubattia Princess, Chaubattia Anupam (Early
Shanburry x Red Delicious), Ambred (Red Delicious x Ambri),
Ambrich (Richared x Ambri), Ambroyal (Starking Delicious x
Ambri)

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4. Low Chilling Michal, Schlomit, Anna, Tamma, Vered, Neomi, Tropical Beauty,
Parlin’s Beauty
5. Pollinizing Tydeman’s Early, Red Gold, Golden Delicious, Mc Intosh, Lord
Lambourne, Winter Banana, Granny Smith, Starkspur Golden,
Golden Spur
Source: National Horticulture Board

1.4 HEALTH BENEFITS AND NUTRITIONAL INFORMATION

Nutritional value:

The nutrition facts for apples (100 grams) are:

• Carbohydrates: 13.81 g

• Sugars: 10.39 g

• Dietary fiber: 2.4 g

• Fat: 0.17 g

• Protein: 0.26 g

• Vitamin A equiv.:3 μg

• Thiamin (Vit. B1): 0.017 mg

• Riboflavin (Vit. B2): 0.026 mg, 2%

• Niacin (Vit. B3): 0.091 mg, 1%

• Pantothenic acid (B5): 0.061 mg, 1%

• Vitamin B6: 0.041 mg, 3%

• Folate (Vit. B9): 3 μg, 1%

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 • Vitamin C: 4.6 mg, 8%

• Calcium: 6 mg, 1%

• Iron: 0.12 mg, 1%

• Magnesium: 5 mg, 1%

• Phosphorus: 11 mg, 2%

Apples are among the world’s most popular fruits. Apples are high in fiber, vitamin C,
and various antioxidants. They are also very filling, considering their low calorie count.

• Carbohydrate: Apples are mainly composed of carbs and water. They’re rich in simple
sugars, such as fructose, sucrose, and glucose. Despite their high carb and sugar contents,
their glycemic index (GI) is low, ranging 29–44. The GI is a measure of how food affects
the rise in blood sugar levels after eating. Low values are associated with various health
benefit. Due to their high fiber and polyphenol counts, fruits often have a low GI score.

• Fiber: Apples are very rich in fiber. It contains both soluble and insoluble fiber. Soluble
fiber is associated with various health benefits. Fibers may also help improve fullness and
cause weight loss while lowering blood sugar levels and boosting digestive function.

• Vitamin C: Also called ascorbic acid, this vitamin is a common antioxidant in fruits. It’s
an essential dietary nutrient that has many important functions in your body.

• Potassium: The main mineral in apples, potassium may benefit heart health when
consumed in high amounts.

Apples are high in various antioxidant plant compounds, which are responsible for many
of their health benefits. These include:

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 • Quercetin: nutrient that also occurs in many plant foods, quercetin may have anti-
inflammatory, antiviral, anticancer, and antidepressant effects.

• Catechin: A natural antioxidant, catechin is also present in large amounts in green

tea and has been shown to improve brain and muscle function.

• Chlorogenic acid: Also found in coffee, chlorogenic acid has been found to lower blood
sugar and cause weight loss.

CONSTITUENTS AND HEALTH BENEFITS OF APPLES

Health benefits:

i. Apple fruit is notable for its impressive list of phtytonutrients, and antioxidants. Studies
suggest that its components are essential for optimal growth, development, and overall
wellness.

ii. Apples are low in calories; 100 g of fresh fruit slices provide just 50 calories. They,
however, contain no saturated fats or cholesterol. Nonetheless, the fruit is rich in dietary
fiber, which helps prevent absorption of dietary-LDL or bad cholesterol in the gut. The fiber
also saves the colon mucous membrane from exposure to toxic substances by binding to
cancer-causing chemicals inside the colon.
iii. Apples are rich in antioxidant phytonutrients flavonoids and polyphenolics. The total
measured antioxidant strength (ORAC value) of 100 g apple fruit is 5900 TE. Some of the
important flavonoids in apples are quercetin, epicatechin, and procyanidin B2.

iv. Additionally, they are also good in tartaric acid that gives tart flavor to them. Altogether,
these compounds help the body protect from harmful effects of free radicals.

v. Apple fruit contains good quantities of vitamin-C and β-carotene. Vitamin C is a

powerful natural antioxidant. Consumption of foods rich in vitamin-C helps the body

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 develop resistance against infectious agents and scavenge harmful, pro-inflammatory free
radicals from the body.

vi. Further, apple fruit is an ideal source of B-complex vitamins such as riboflavin, thiamin,
and pyridoxine (vitamin B-6). Together, these vitamins help as co-factors for enzymes in
metabolism as well as in various synthetic functions inside the human body.

vii. Apples also carry small quantities of minerals like potassium, phosphorus, and calcium.
Potassium is an important component of cell and body fluids helps controlling heart rate and
blood pressure; thus, counters the bad influences of sodium.

1.5 CULTIVATION, BEARING & POST HARVEST

MANAGEMENT:-
Apple, (Malus domestica), fruit of the domesticated tree Malus
domestica (family Rosaceae), one of the most widely cultivated tree fruits. The apple is a
pome (fleshy) fruit, in which the ripened ovary and surrounding tissue both become
fleshy and edible. The apple flower of most varieties requires cross-pollination for
fertilization. When harvested, apples are usually roundish, 5–10 cm (2–4 inches) in
diameter, and some shade of red, green, or yellow in colour; they vary in size, shape, and
acidity depending on the variety. When planted from a seed, an apple tree can take six to
ten years to mature and produce fruit of its own. Apple trees are small to medium sized
trees reaching heights of 5–10 m (16.4–32.8 ft), with a central trunk which divides into
several branches. The leaves of the tree are oval in shape and can reach up to 13 cm (5.1
in) in length and 7 cm (2.8 in) in width. Apple may also be referred to as mela or appel
and the domestic tree is believed to have originated from Western Asia and the
Mediterranean from several wild ancestors.

Cultivation and Bearing:-

Growing apples at up to 2500 m from mean sea level is supposed to
be beneficial for earning good profit. An apple orchard requires an avg. temp of 20 to 26

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 °C during the growth period along with 100 to 120 cm annual rainfall. It is notable that
fog or heavy rainfall during fruit maturity period is the main cause of improper fruit
growth. Also, not that apple farming should be avoided in such area where heavy winds
are expected.

Land Selection and its Preparation in Apples Farming

A proper site selection for cultivating apple is an important task. If climate supports, then
with good farm management skill, anyone can produce quality apples in high quantities.

Soil Requirement

Apple can be cultivated in all types of soil. However, a loamy soil, rich in all essential
organic matter along with well-drainage power is considered as the best soil for apple
farming. Also, it should have pH, ranging between 5.5 to 6.8 with proper aeration. It is a
good thing to go for at least one soil test to find out the suitability and soil fertility for
apple farming. It will also help in determining any deficiency of micronutrients so that
proper supplementation at the time of land preparation can be done.

Land Preparation

Commercial apple farming must be done on well-drained soil with decent layout and
deep ploughing. Weeds from the preceding crop should be removed, if present.

Propagation Method

Generally, Apples are propagated with the help of tongue grafting and budding methods.
It should be from the genuine and registered nurseries in your local. They should be
transplanted properly when these nursery grown seedlings become ready or suitable for
transplantation in apple orchard. For planting apples, pit is dug having proper size with
dimension one meter each. A mixture of rotten cow dung manure, 40 kg along with 50

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 gm of malathion dust and 500 gm of superphosphate is should be incorporated to each pit
for good development of apple tree. An immediate irrigation should be done, just after
transplantation of apples on the apple orchards. Also, a planting pollinator must be
provided between the main plantations for obtaining decent apple fruit production

Spacing

Spacing in apple orchard is mainly depended on the apple varieties and planting method,
used for the cultivation. By planting apple trees keeping a proper distance, it is possible
to plant about 300 to 1200 no’s of apple plant per hectare land.

However, there are mainly 4 types of density planting, usually followed by the growers.

i. With the help of Ultra high density (UHD) method of planting, about 1200 apple
plants per hectare can be cultivated.

ii. With the help of high density (HD) method of planting, about 600 to 1200 apple
plants per hectare can be cultivated.

iii. By using moderate density plantation, 300 to 600 apple plants per hectare can be
cultivated.
iv. By following low-density plantation in apple cultivation, 300 apple plants per hectare
can be cultivated.

Watering Apple Trees

An apple tree requires about 120 cm rainfall per annum. So, providing this much of water
is beneficial for more production of apples. Watering in apple orchard must be on a
schedule basis for about 20 irrigation per year. Watering should be done frequently in the

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 summer season at an interval of a week whereas, in winter, irrigation should be carried
out at an intervals of three to four weeks or even more.

Growing Apples/Planting Season

Usually, apples are planted in the winter season, mostly in the month of January and
February Since apples thrive their best in the cool region at chilling temp. Apples should
be planted in the square or hexagonal planting system. If planting is done in the hilly area
or valleys, the counter planting method is good in those sloppy areas.

Apple Harvesting

Generally, apple orchard begins fruit bearing after about 7 to 8 years of plantation.
However, it is mainly depended on the variety of apple. Generally, an apple tree gives
fruit for about more than 35 years. In the beginning, there is less fruit production; but,
after about 8 years of starting fruit bearings, fruit production will increase up to 15 years.
Thereafter, this production will remain stable for about 35 years. Presently, there are
many types of apple, easily available in the market that can produce fruits for more than
35 years constantly depending on the surroundings atmospheres.

Yield

The yield of apple farming depends on numbers of factors like the agroclimatic
conditions of the atmosphere (cooling, sunlight, wind flow, etc), type of soil, variety of
apple and farm management skills. However, averagely about 12 to 18 tonnes of apple
per hectare can be easily obtained after a good establishment and it can be increased
latterly in the following years.

Post-harvest management:-

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 There are some fruit handling management after harvesting to avoid post-harvest losses.
Following are Post-harvesting handling practices:

• Fruits are graded according to their size and color. All the diseased, deformed, bruised
fruits are sorted out.
• Do not leave harvested fruit out in the hot sun;
• Wear cotton gloves when harvesting. This reduces chances of getting injured.
• Use picking bags. This reduces damage as a result of abrasion on Wooden or metal
picking bins and allows fruit to be gently lowered into Bulk harvesting bins;
• Do not leave stems on fruit or damage buttons by “plugging”;
• Use clean, smooth harvesting bins;
• Make sure packing line equipment is cleaned regularly. This reduces dirt and wax
buildup which can cause fruit abrasion;
• Reduce packing line abrasion by using foam, rubber and smooth belts to Cushion
fruit;
• Remove old and rotten fruit regularly from the packing shed and surrounds;
• Treat harvested fruit with a registered fungicide within 24 hrs of harvest;

An apple continues to live and respire even after it is picked. Although respiration cannot be
halted completely, the objective of postharvest cooling is to slow the process and thus
increase storage life. Preferred cooling method are forced air, hydrocooling (room cooling
acceptable); optium temperature is 30-40°F depending on variety; freezing temperature is
29°F; optimum humidity is 90-95% to storage life is up to 12 months.

The general practice is to wash the harvested fruits with chlorine. If the
fruits have to be transported over longer distances, then they are packed in wooden boxes
else baskets made of bamboo and mulberry are used for packing apple. The boxes or baskets
have to be ventilated and the fruits should be wrapped in tissue paper or newspaper for
protection.

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 1.6 PROCESSING & VALUE ADDITION:-

The fresh apple fruits have limited shelf life; therefore, it is necessary to
process fresh fruits in to different value added products to increase its availability over an
extended period and to stabilize the price during the glut season. The processed products
have good potential for internal as well as external trade. Seasonal losses in surplus apple
fruits can be avoided by processing into different value added products that make them more
attractive to the buyer and/or more readily usable to the consumer. Apples can be eaten as
raw as well as a vital ingredient in numbers of sweets like apple crisp, apple crumbles, apple
cake, and dehydrated slices and apple pie. Apart from this, apples are also processed into
beverages and sugar based products like jam jelly.

Processing of fruits results in high amount of waste materials like

peels, seeds, stones, oilseed meals etc. It creates problem that is further provoked by legal
restrictions. Thus new aspects relating to the use of these wastes as by-products for
additional exploitation on the production of food additives with high nutritional value
have gained increasing interest since these are high-value products and may be
economically attractive.

Various products from apple is processed and popular nowadays:

• Apple Candy
• Apple Jam
• Apple Jelly
• Apple juice
• Apple Pulp
• Apple concentrate
• Dehydrated apple slices
• Canned apple slices
• Apple RTS

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 Apple Candy:
A candy is a sugar based confectionary mae from concentrated sugar
solution, to which they generally add the apple flavor, to produce yummy, mouthwatering
apple candies, which melts slowly in mouth, with a rich taste of apple, for each and every
swallow you do.

Apple Jam:
A good jam has a soft and even consistency with good fruit flavor, bright
color and a semi jellied texture, that is easy to spread over, but has no free liquid. Apple
jam has the fresh flavor of ordinary apples. This jam can be relished by spreading a
generous amount over a slice of bread with cheese or butter.

Apple Jelly:
Apple jelly is a semi solid food made from fruit juice, sugar and
pectin. Generally the pectin present in the fruit should act as a gelling agent, but since it
is insufficient to form a proper gel, pectin is added externally the gelling capacity.

Apple juice:
Apple Juice is one of the fruit juice which is manufactured by
maceration and pressing of apples. The expelled juice is further processed by centrifugal
and enzymatic clarification to remove the pectin and starch.

Apple pulp:
Apple pulp is manufactured by picking fresh fruits, which are clean,
sound and properly matured. The fruit and the pulp is processes and packed in
accordance with proper manufacturing.

Apple concentrates:

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 Apple juice concentrate is generally produced by evaporating the fresh
apple juice, which is extracted the fresh apple juice, which is extracted from farm fresh
juicy apples. Fresh apple juice has a concentration of around 11 to 13 brix.

Dehydrated Apple slices:

Dehydrated apple slices are a dehydrated version of apple which can

preserved by drying. It can easily be added into the diet or can be consumed as a low-calorie
snack, anywhere, anytime. Many commercial brands today add ingredients such as salt,
spices and vegetable oils not only to boost its flavour but also to lengthen its shelf life.
Apple’s suitability for drying is fair to good. Modern research shows that its nutritional
content may benefit the health.

Drying or dehydration is one of the most effective means to extend

the shelf life of perishable fruits and vegetables. The main purpose of dehydration in
preserving fruits and vegetables is to remove moisture so that water activity of the
dehydrated products is low enough of aw less than 0.6 for preventing the spoilage and the
growth of pathogenic microorganisms and subsequently to reduce the spoilage reactions.
Dehydration is also used in combination with other preservative factors such as initial
heating of vegetable in boiling water and salt solution to extend the shelf life of vegetables.
Dehydration significantly reduces the cost of transportation and storage due reduced weight
and volume of dehydrated vegetables. Unlike fresh vegetables, dehydrated vegetables do not
require refrigeration during storage.

Value addition of apple increases the nutritional profile and helps in

proper utilization of crop by reducing wastage. It helps farmers to produce higher shelf-
life product with reasonable higher income.

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 2. MODEL DEHYDRATED APPLE SLICES PROCESSING UNDER
FME SCHEME

2.1 LOCATION OF THE PROPOSED PROJECT AND LAND

The entrepreneur must provide description of the proposed location, site of the project,
distance from the targeted local and distant markets; and the reasons/advantages thereof
i.e. in terms of raw materials availability, market accessibility, logistics support, basic
infrastructure availability etc. The major apple growing areas in India are 6 districts of
J&K (Srinagar, Budgam, Pulwama, Anantanag, Baramullah, Kupwara), 6 districts of H.P.
(Shimla, Kullu, Sirmour, Mandi, Chamba, Kinnaur) and 8 districts of U.P. (Almora,
Nainital, Pithauragarh, Tehri, Pauri, Chamoli, Uttarkashi, Dehradun). In the North-
eastern Hills region, good quality apple is grown in a small area in Tawang belt of
Kameng district in Arunachal Pradesh.

2.2 INSTALLED CAPACITY OF THE DEHYDRATED APPLE

SLICES PROCESSING UNIT

The maximum installed capacity of the Dehydrated apple slices manufacturing unit in the
present model project is proposed as 75 tonns/annum or 250 kg/day Dehydrated apple
slices. The unit is assumed to operate 300 days/annum @ 8-10 hrs/day. The 1styear is
assumed to be construction/expansion period of the project; and in the 2nd year 55 percent
capacity, 3rd year 65 percent capacity, 4th year 75 percent capacity and 5th year onwards
90 percent capacity utilization is assumed in this model project.

2.3 RAW MATERIAL REQUIREMENTS FOR THE UNIT

A sustainable food processing unit must ensure maximum capacity utilization and thus
requires an operation of minimum 280-300 days per year to get reasonable profit. Therefore,
ensuring uninterrupted raw materials supply requires maintenance of adequate raw material
inventory. The processor must have linkage with producer organizations preferably FPCs
through legal contract to get adequate quantity and quality of raw materials which otherwise

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 get spoiled. In the Dehydrated apple slices manufacturing project, the unit requires 938.18
kg/day, 1108.76 kg/day, 1279.34 kg/day and 1535.21 kg/day Apple fruit at 55, 65, 75, and
90 percent capacity utilization, respectively. The Mature Apple must be plucked from plant;
and then stored below 6°C temperature.

2.4 MANUFACTURING PROCESS OF THE DEHYDRATED APPLE

SLICES

FLOW CHART OF DEHYDRATED APPLE SLICES

Apple

Washing, sorting, grading, peeling

Cutting into dices

Blanching

Drying in cabinet dryer at 55-60° C for 6-8 hours

Cooling at room temperature

Packaging at polypropylene pouches

Storage at ambient temperature for 6-8 months

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 2.5 MARKET DEMAND AND SUPPLY FOR DEHYDRATED APPLE
SLICES

The use of dehydration is a time honored way of preserving seasonal fruits

and vegetables and has been around for ages. The freeze drying and sun drying methods
are the most preferred processes among the manufacturers of dehydrated fruits &
vegetables. The drying process renders ingredients and food safe from yeast, bacteria,
mold and other forms of microbial contamination. The dehydrated fruits & vegetable
market has observed significant improvement in terms of new product launches along with
an increase in research & development activities. According to the MRFR analysis, the
dehydrated fruits & vegetable market globally is projected to touch USD 38.06 billion in
revenues through the forecast period from 2018 to 2023 while registering a CAGR of 7.95
percent approximately.

Dehydration has become highly sought-after as the technology enables

in transforming food to a state that is easy to store, package, and transport. Food
drying technologies such as heat pump drying, vacuum drying, air drying, and others have
been around for some time now. While advent of these technologies continues to aid
expansion, the market has been witnessing a spurt of innovations.

The dehydrated fruits & vegetable market is expected to be

motivated by a combination of factors. Among these factors is the intensifying demand for
seasonal fruits & vegetables which is positively influencing the growth of the market. On
the other hand, the progressive growth of sports drinks and supplements also has been a
significant factor in increasing the market size of dehydrated fruits & vegetables market.
The demand for non-carbonated beverages such as instant beverages and nutraceuticals is
also noted to be progressively contributing to the growth of the market because health
conscious consumers are more inclined towards buying naturally flavored beverages made
from fresh fruits and vegetables, because of their rich anti-oxidant qualities. Besides, as
dehydrated fruits & vegetables are lighter, convenient and do not require refrigeration,
their shelf life is much high as compared to the fresh fruits & vegetables which creates an
enormous opportunity for the market for dehydrated fruits & vegetables. The demand for

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 clean label food & beverage products in the market has been escalating in recent years;
this trend is forecasted to drive the expansion of the market further in the forecast period.
Escalating consumer awareness with regards to the trend of food traceability throughout
the supply chain so as to identify and trace ingredient’s origin has stimulated the growth of
the market substantially. Additionally, Superfruit powders are experiencing speedy growth
as they are being used as ingredients in beverages, foods, and pharmaceutical products.

The companies in the market are also increasingly focused on redesigning existing designs
with better features or developing innovative packaging designs, such as fittings that are
easy to open and close, attention-grabbing shapes, strong protection barriers, and use of
sustainable materials to increase the product durability. The innovative packaging is
considerably helping in capturing consumer attention and increasing the sale of products
further. The growing acceptance of instant beverages in quick service restaurants is
anticipated to be among the major factors for the rising growth of instant beverages,
thereby growing the market for dehydrated fruits and vegetables. The growing urban
middle class population with higher levels of disposable incomes available to them is
anticipated to power the sales of ready to eat food products which are considered to be one
of the key factors for intensifying the growth of dehydrated fruits & vegetables in the
emerging economies.

The surplus demand for healthy food products among the

consumers has been creating lucrative growth opportunities. In order to cater to the
increasing demand for natural and healthy food ingredients, food manufacturers are
emphasizing to include dehydrated fruits and vegetables in their product line.

Dehydrated fruits and vegetables retain 100% of the nutrition

content of fresh fruits and vegetables while it only takes half of the space, which offers
manufacturers with better convenience to transport food items from one place to another.
Apart from convenience in transportation, dehydrated fruits and vegetables are rich in
nutrients and dietary fiber content which have been helping the market gain traction.

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 The challenging work environment in urban centers results in
amplified work time, making it more difficult for customers to spend time at home for
cooking food. Hectic lifestyle is compelling consumers to opt for packaged and ready-to-
eat meals. Dehydrated fruits and vegetables help customers enjoy tasty foods that consume
less time to prepare. Meanwhile dehydrated ruits and vegetables are available in a wide
range of varieties, which has been presenting increasing choices to consumers.
Consumers are seeking out reasonably priced, convenient and
tasty food products that will suit their fast-paced lifestyle, thus providing abundant growth
opportunities for dehydrated fruits and vegetable products manufacturers.

The dehydrated fruits and vegetables market globally is

segmented on the basis of type, form, and region. On the basis of the type, the market is
categorized into fruits & vegetables. The fruits segment is projected to be responsible for
the substantial market share of 67.5 percent in the year of 2018, and the segment is likely
to achieve USD 1,667.41 million in revenue with registering a CAGR of 5.83 percent for
the duration of the forecast period from 2018 to 2023. Fruits are further segmented into
bananas, cherries, apples, apricots, pineapple, and others. While the vegetable segment is
further segmented into tomato, onions, mushrooms, garlic, and others. Moreover, the
vegetable segment is anticipated to grow at an amplified development rate in the forecast
period.

The form based segmentation of the dehydrated fruits & vegetable

market consists of granules, powder, and others. The powder segment is expected to be
accredited for the key market portion of 81.2 percent in 2018, and the development is
projected to carry on through the forecast period of The Powder segment is estimated to
accomplish USD 31,291.45 million in revenues by the end of 2023. The granules segment
is anticipated to observe a modest growth rate of 7.89 percent through the forecast period.

India remains one of most prominent markets for dehydrated fruits

and vegetables manufacturers globally. The country is home to the world’s leading food
producers, importers, and exporters. FMI has forecast India to remain one of the highly

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 profitable markets over the course of the forecast period. India is the world’s 2nd largest
producer of fruit and vegetables in the world next only to China.

According to FMI, India holds more than 13% of share in globally in

year 2021. It is estimated to increase in the coming years, which is indicative of notable
scope for extension it will offer to dehydrated fruits and vegetables manufacturing
companies.

2.6 MARKETING STRATEGY FOR DEHYDRATED APPLE SLICES

The increasing urbanization and income offers huge scope for marketing of fruit based
products. Urban organized platforms such as departmental stores, malls, super markets can be
attractive platforms to sell well packaged and branded Apple products.

2.7 DETAILED PROJECT ASSUMPTIONS

This model DPR for Dehydrated apple slices unit is basically prepared as a template based on
certain assumptions that may vary with capacity, location, raw materials availability etc. An
entrepreneur can use this model DPR format and modify as per requirement and suitability.
The assumptions made in preparation of this particular DPR are given in This DPR assumes
expansion of existing fruit processing unit by adding new dehydration processing line.
Therefore, land and civil infrastructures are assumed as already available with the
entrepreneurs.

• Herewith in this DPR, we have considered the assumptions as listed below in the tables of
different costs, which may vary as per region, seasons and machinery designs and
supplier.
1. Apple cost considered @ Rs.40/-per kg.
2. 1 kg Apple will produce 17 % recovery.

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 3. 1 Batch size is approximately 100 kg.
4. No. of hours per day are approximately 8-10 hours.
5. Batch yield is 95%
Detailed Project Assumptions
Parameter Assumption

Capacity of the Dehydrated

apple slices Unit 75 MT/annum

1st Year Implementation, 55% in

Utilization of capacity second, 65% in third, 75% in fourth
year, 90% in fifth onwards

Working days per year 300 days

Working hours per day 10 hours

Interest on term and working

capital loan 12%

Seven year with one year grace period

Repayment period is considered.

Average prices of raw material 40

Average sale prices per Kg 620 Rs/kg

Powder extraction 17%

1 kg Dehydrated apple slices from 6.82

Dehydrated apple slices kg Apple

2.8 FIXED CAPITAL INVESTMENT

2.8.1 MACHINERY AND EQUIPMENT

Capacity Area (in Price (Rs. In

Sr No. Equipment Quantity feet) Lacs)

1 Cold Room 1 10000 kg 12*14*10 11.4

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 200 kg per
2 Bubble washer 1 batch 6*4 2.9

3 Fruit slicer 1 200 kg hr 4*3 1.2

4 Tray drier with trolley 1 500 kg/hr 8*10 6

5 Cont. sealing machine 1 Suitable 4*3 0.25

6 Batch coding machine 1 Suitable 0.12

7 Weighing balance 1 Suitable 0.06

8 Accessories 1 Suitable 0.5

Total 22.43

2.8.2 OTHER COSTS:-

Utilities and Fittings:-

Utilities and Fittings

1.Water Rs. 0.8Lacs total
2.Power

Other Fixed Assests:

Other Fixed Assets

1. Furniture & Fixtures Rs. 0.9 lac total
2. Plastic tray capacity
3. Electrical fittings

Pre-operative expenses

Pre-operative Expenses
Legal expenses, Start-up expenses, 0.9 LAC
Establishment cost, consultancy fees,
trials and others.
Total preoperative expenses 0.9 LAC

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 Contingency cost to be added as approx.1.2 Lac.

So total startup cost at own land & Premise may be somewhat similar to 40.18 lacs. This is
according to survey done at X location India. This may vary on location, situation and design
change over.

2.9 WORKING CAPITAL REQUIREMENTS

Year 4
Period Year 2 (55%) Year 3 (65%) (75%)
Particulars (days)
5 3.59 4.24 5.79
Raw material stock
10 7.18 8.49 11.57
Work in progress
10 0.15 0.18 0.24
Packing material
10 7.72 9.12 12.44
Finished goods’ stock
20 15.43 18.24 24.87
Receivables
14 0.54 0.64 0.87
Working expenses
34.61 40.90 55.78
Total current assets
0.00 0.00 0.00
Trade creditors
34.61 40.90 55.78
Working capital gap
8.65 10.23 13.94
Margin money (25%)
25.96 30.68 41.83
Bank finance

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2.10TOTAL PROJECT COST AND MEANS OF FINANCES

Amount in
Particulars
Lakhs
i. Land and building (20 x 32 x 12 ft -
LxBxH) 5.3
ii. Plant and machinery 22.43
iii. Utilities & Fittings 0.8
iv. Other Fixed assets 0.9
v. Pre-operative expenses 0.90
vi. Contingencies 1.20
vii. Working capital margin 8.65
Total project cost (i to vii) 40.18
Means Of finance
i. Subsidy 10.00
ii. Promoters Contribution 10.44
iii. Term Loan (@49%) 19.72

2.11 MANPOWER REQUIREMENTS

Total Monthly Salary (Rs.) No Wages Total Monthly Total Annualy
Supervisor (can be the owner) 1 15000 15000 180000
Technician 1 12000 12000 144000
Helper 3 5500 16500 198000
Sales man 1 7000 7000 84000
50500 606000

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 2.12 EXPENDITURE, REVENUE AND PROFITABILITY ANALYSIS
2nd 3rd 4th 5th
Particulars 1st Year Year Year Year year
512 MT
A Total Installed Capacity (MT) Apple/Annum 41.25 48.75 56.25 67.5

Capacity utilization (%) Under Const. 55% 65% 75% 90%

B Expenditure (Rs. in Lakh) 0

Apple (Av. Price @ Rs. 40/Kg ) 0.00 112.58 133.05 153.52 184.23

Packaging materials 0.00 2.48 2.93 3.38 4.05

Utilities (Electricity, Fuel) 0.00 2.21 2.61 3.01 3.62

Salaries (1st yr only manager’s salary) 1.80 6.06 6.06 6.06 6.06

Repair & maintenance 0.00 0.70 0.80 0.90 0.90

Insurance 0.30 0.30 0.30 0.30 0.30

Miscellaneous expenses 0.50 2.30 2.30 2.30 2.30

Total Expenditure 2.60 126.63 148.05 169.47 201.45

C Total Sales Revenue (Rs. in Lakh) 0.00 255.75 302.25 348.75 418.50

Sale of Deydrated apple slices (Av. Sale Price @ Rs.

620/kg) 0.00 255.75 302.25 348.75 418.50

PBDIT (Total exp.-Total sales rev.) (Rs. in Lakh)/Cash

D Inflows -2.60 129.12 154.20 179.28 217.05

Depreciation on civil works @ 5% per annum 0.27 0.25 0.24 0.23 0.22

Depreciation on machinery @ 10% per annum 2.24 2.02 1.82 1.64 1.47

Depreciation on other fixed assets @ 15% per annum 0.12 0.10 0.09 0.07 0.06

Interest on term loan @ 12% 2.05 1.98 1.90 1.82 1.72

Interest on working capital @ 12% 0.00 3.11 3.68 5.02 5.02

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E Profit after depreciation and Interest (Rs. in Lakh) -7.28 124.77 150.16 175.53 213.58

F Tax (assumed 30%) (Rs. in Lakh) 0.00 37.43 45.05 52.66 64.07

G Profit after depreciation, Interest & Tax (Rs. in Lakh) -7.28 87.34 105.11 122.87 149.50

Surplus available for repayment (PBDIT-Interest on

H working capital-Tax) (Rs. in Lakh) 2.05 1.98 1.90 1.82 1.72

I Coverage available (Rs. in Lakh) 2.05 1.98 1.90 1.82 1.72

J Total Debt Outgo (Rs. in Lakh) 0.69 0.76 0.83 0.92 1.02

K Debt Service Coverage Ratio (DSCR) 3.00 2.62 2.28 1.97 1.69

Average DSCR 2.16

L Cash accruals (PBDIT- Interest-Tax) (Rs. in Lakh) -4.65 89.71 107.25 124.81 151.25

M Payback Period 2.0 Years

(on Rs. 40.18 Lakhs initial investment)

2.13 REPAYMENT SCHEDULE

Year Beginning PMT Interest Principal Ending Balance

1 1,972,973.07 273,689.21 205,189.20 68,500.01 1,904,473.06

2 1,904,473.06 273,689.21 198,065.20 75,624.01 1,828,849.04

3 1,828,849.04 273,689.21 190,200.30 83,488.91 1,745,360.13

4 1,745,360.13 273,689.21 181,517.45 92,171.76 1,653,188.37

5 1,653,188.37 273,689.21 171,931.59 101,757.62 1,551,430.75

6 1,551,430.75 273,689.21 161,348.80 112,340.41 1,439,090.34

7 1,439,090.34 273,689.21 149,665.40 124,023.82 1,315,066.52

8 1,315,066.52 273,689.21 136,766.92 136,922.29 1,178,144.23

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 9 1,178,144.23 273,689.21 122,527.00 151,162.21 1,026,982.02

10 1,026,982.02 273,689.21 106,806.13 166,883.08 860,098.93

11 860,098.93 273,689.21 89,450.29 184,238.92 675,860.01

12 675,860.01 273,689.21 70,289.44 203,399.77 472,460.24

13 472,460.24 273,689.21 49,135.87 224,553.35 247,906.89

14 247,906.89 273,689.21 25,782.32 247,906.89 (0.00)

3,831,648.96 1,858,675.89 1,972,973.07 (1,972,973.07)

2.14 ASSET’S DEPRECIATION

Assets’
Depreciation
(Down Value Amounts
Method) in Lakhs
1st
Particulars Year 2nd year 3 rd year 4th year 5th year 6th year 7th year 8th year

Civil works 5.30 5.04 4.78 4.54 4.32 4.10 3.90 3.70

Depreciation 0.27 0.25 0.24 0.23 0.22 0.21 0.19 0.19

Depreciated value 5.04 4.78 4.54 4.32 4.10 3.90 3.70 3.52

Plant &
Machinery 22.43 20.19 18.17 16.35 14.72 13.24 11.92 10.73

Depreciation 2.24 2.02 1.82 1.64 1.47 1.32 1.19 1.07

Depreciated value 20.19 18.17 16.35 14.72 13.24 11.92 10.73 9.66

Other Fixed
Assets 0.80 0.68 0.58 0.49 0.42 0.35 0.30 0.26

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 Depreciation 0.12 0.10 0.09 0.07 0.06 0.05 0.05 0.04

Depreciated value 0.68 0.58 0.49 0.42 0.35 0.30 0.26 0.22

All Assets 28.53 25.90 23.53 21.39 19.45 17.70 16.12 14.69

Depreciation 2.63 2.37 2.14 1.94 1.75 1.58 1.43 1.30

Depreciated value 25.90 23.53 21.39 19.45 17.70 16.12 14.69 13.39

2.15 FINANCIAL ASSESSMENT OF THE PROJECT

Benefit Cost Ratio (BCR) and Net Present
Worth (NPW)
2nd 3 rd 4th 5th 6th
Particulars 1st Year year year year year year
40.18 0.00 0.00 0.00 0.00
Capital cost (Rs. in Lakh)
2.60 126.63 148.05 169.47 201.45
Recurring cost (Rs. in Lakh)
42.78 126.63 148.05 169.47 201.45 688.38
Total cost (Rs. in Lakh)
0.00 255.75 302.25 348.75 418.50
Benefit (Rs. in Lakh)
13.39
Total Depreciated value of all assets (Rs. in Lakh)
0.00 255.75 302.25 348.75 418.50 13.39 1325.25
Total benefits (Rs. in Lakh)
Benefit-Cost Ratio (BCR): (Highly Profitable 1.925
project)
636.87
Net Present Worth (NPW):

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2.16 BREAK EVEN ANALYSIS
Break even analysis indicates costs-volume profit relations in the short run. This is the level at which, the firm is in no loss
no profit situation.

2nd 4th 5th

Particulars 1st Year year 3 rd year year year
Under
Capacity utilization (%) Const. 55% 65% 75% 90%

Production MT/Annum 41.25 48.75 56.25 67.5

Fixed Cost (Rs. in Lakh)

Permanent staff salaries 6.06 6.06 6.06 6.06 6.06

Depreciation on building @ 5% per annum 0.27 0.25 0.24 0.23 0.22

Depreciation on machinery @ 10% per annum 2.24 2.02 1.82 1.64 1.47

Depreciation on other fixed assets @ 15% per

annum 0.12 0.10 0.09 0.07 0.06

Interest on term loan 2.05 1.98 1.90 1.82 1.72

Insurance 0.3 0.3 0.3 0.3 0.3

Total Fixed Cost (Rs. in Lakh) 11.04 10.71 10.40 10.11 9.83

Sales Revenue (Rs. in Lakh) 0.0 255.8 302.3 348.8 418.5

Variable Cost (Rs. in Lakh)

Apple (Av. Price @ Rs. 40/Kg ) 0.00 112.58 133.05 153.52 184.23

Packaging materials 0.00 2.48 2.93 3.38 4.05

Casual staff salaries 0.00 4.56 4.56 4.56 4.56

Utilities (Electricity, Fuel) 0.00 2.21 2.61 3.01 3.62

Repair & maintenance 0.00 0.70 0.80 0.90 0.90

Miscellaneous expenses 0.50 2.00 2.00 2.00 2.00

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 Interest on working capital @ 12% 0.00 3.11 3.68 5.02 5.02

Total Variable Cost (Rs. in Lakh) 0.50 127.64 149.63 172.39 204.37

Break Even Point (BEP)

as % of sale - 12.00 10.00 8.00 8.00

Break Even Point (BEP) in terms of sales value (Rs.

in Lakhs) - 30.69 30.23 27.90 33.48

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2.17 PIE CHART FOR BETTER UNDERSTANDING OF
EXPENSES OF EACH HEAD:

Contingency, 1.2
Fixed Assets, 0.9 Amount in lakhs
Water + Power,
Accessories, 0.5
0.8
Pre-
Weighing
operative
balance, 0.06
cost, 0.9
Batch coding
machine, 0.12
Cont.
sealing Cold Room, 11.4
machine,
0.25
Tray drier with
trolley, 6

Bubble washer, 2.9

Fruit slicer, 1.2

Cold Room Bubble washer Fruit slicer Tray drier with trolley
Cont. sealing machine Batch coding machine Weighing balance Accessories
Contingency Water + Power Fixed Assets Pre-operative cost

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 2.18 TYPICAL DEHYDRATED APPLE SLICES
MANUFACTURING UNIT LAYOUT

2.19 MACHINERY SUPPLIERS

There are many machinery suppliers available within India for fruits based
dehydration processing machineries and equipment. Some of the suppliers are:
1. Bajaj Process pack Limited, Noida, India 0
2. Shriyan Enterprises. Mumbai, India

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3. LIMITATIONS OF MODEL DPR & GUIDELINES FOR
ENTREPRENEURS

3.1 LIMITATIONS OF THE DPR

i. This DPR has provided only the basic standard components and methodology to
be adopted by an entrepreneur while submitting a proposal under the Formalization
of Micro Food Processing Enterprises Scheme of MoFPI.

ii. This DPR is made to provide general methodological structure not for specific
entrepreneur/crops/location. Therefore, information on the entrepreneur, forms and
structure (proprietorship/partnership/cooperative/ FPC/joint stock company) of
business, background of proposed project, location, raw material base/contract
sourcing, entrepreneur’s own SWOT analysis, market research, rationale of the
project for specific location, community advantage/benefit, employment
generation etc are not given in detail.

iii. The present DPR is based on certain assumptions on cost, prices, interest,
capacity utilization, output recovery rate and so on. However, these assumptions in
reality may vary across places, markets and situations; thus the resultant
calculations will also change accordingly.

3.2 GUIDELINES FOR THE ENTREPRENEURS

i. The success of any prospective food processing project depends on how closer
the assumptions made in the initial stage are with the reality of the targeted
market/place/situation. Therefore, the entrepreneurs must do its homework as
realistic as possible on the assumed parameters.

ii. This model DPR must be made more comprehensive by the entrepreneur by
including information on the entrepreneur, forms and structure
(proprietorship/partnership/cooperative/ FPC/joint stock company) of
entrepreneur’s business, project location, raw material costing base/contract
sourcing, detailed market research, comprehensive dehydrated product mix

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 based on demand, rationale of the project for specific location, community
advantage/benefit from the project, employment generation,
production/availability of the raw materials/crops in the targeted area/clusters
and many more relevant aspects for acceptance and approval of the competent
authority.

iii. The entrepreneur must be efficient in managing the strategic, financial,

operational, material and marketing aspects of a business. In spite of the
assumed parameter being closely realistic, a project may become
unsustainable if the entrepreneur does not possess the required efficiency in
managing different aspects of the business and respond effectively in
changing situations.

iv. The machineries should be purchased after thorough market research and
satisfactory demonstration.

v. The entrepreneur must ensure uninterrupted quality raw materials’ supply and
maintain optimum inventory levels for smooth operations management.

vi. The entrepreneur must possess a strategic look to steer the business in upward
trajectory.

vii. The entrepreneur must maintain optimum (not more or less) inventory, current
assets. Selecting optimum source of finance, not too high debt-equity ratio,
proper capital budgeting and judicious utilization of surplus profit for
expansion is must.

viii. The entrepreneur must explore prospective markets through extensive

research, find innovative marketing strategy, and maintain quality, adjust
product mix to demand.

ix. The entrepreneur must provide required documents on land, financial

transaction, balance sheet, further project analysis as required by the
competent authority for approval.

x. The entrepreneur must be hopeful and remain positive in attitude while all
situations.
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 Contact Us
Director
Indian Institute of Food Processing Technology
(Ministry of Food Processing Industries, Government of India)
Pudukkottai Road, Thanjavur - 613 005, Tamil Nadu
Phone No.: +91- 4362 - 228155, Fax No.:+91 - 4362 – 227971
Email: director@iifpt.edu.in; Web: www.iifpt.edu.in

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