PROJECT REPORT

Of

JACKFRUIT PROCESSING

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Jackfruit Processing

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project
identification for investment and in order to serve his objective; the document covers various aspects
of the project concept development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement. We can also prepare
project report on any subject as per your requirement.]

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Email : info@udyami.org.in
Contact : +91 7526000333, 444, 555
 PROJECT REPORT

ON

JACKFRUIT PROCESSING

INTRODUCTION

Jackfruit is one of the most significant tropical fruit produced in India. Jack grows
well and gives good yield in warm humid climate of hill slopes and hot humid climate
of plains. Jackfruit is also known as the poor man's food in the Eastern and
Southern part of India. India is considered as the motherland of jackfruit. In India, it
has wide distribution in Assam, Meghalaya, Tripura, Bihar, Uttar Pradesh, the
foothills of the Himalayas and South Indian States of Kerala, Tamil Nadu and
Karnataka. The tender fruits of the tree are used as vegetables and the ripe ones as
table fruits. The traditional varieties bear fruits once in a year. Usually, the flowering
starts from mid-November and extends till mid- February, depending on the location
and the variety. The tender fruits come to market from March onwards and continue
till August. The fruits begin to ripe in the month of June. The region comprising
Assam and Tripura produces major share of jackfruit in India and the total annual
production in Assam is estimated to be in the vicinity of 1,75,000 tons. However, the
fruit is perishable and cannot be stored for long time because of its inherent
compositional and textural characteristics. In every year, a considerable amount of
jackfruit, specially obtained in the glut season (June- July) goes waste (30 to 34 %)
due to lack of proper post-harvest knowledge during harvesting, transporting and
storing. Processing is important technique for the preservation of jackfruit. It adds
diversified and attractive food items in dietary menu as well as contributes to
income generation and employment.

This project profile is for setting up of a Jackfruit Processing unit based on 200
working days per annum and 8 working hours per day. The installed production
capacity of the unit per annum is as follows;

Jackfruit Chips - 20 Ton

Jackfruit Pickles - 10 Ton
Jackfruit Jam - 10 Ton
Dehydrated Jackfruit - 5 Ton

MARKET POTENTIAL

Jackfruit is the favourite fruit for many, owing to its sweetness in taste. Jackfruit is
also rich in several nutrients. It can act as source of complete nutrition to the
consumers. The fruit is equivalent to Avocado and olive in terms of the healthier mix
of nutrients for human dietary needs, almost having the exact nutrient equivalents of
mother’s milk. It is rich in vitamin B and C, potassium, calcium, iron, proteins and
high level of carbohydrates, affordable and readily available supplement to our
staple food. It is heavy and bulky fruit and hence transportation is not very easy and
is costly as well. Therefore, its down the stream products with longer shelf-life can
be easily transported and shall also have value-addition.
PROCESS DETAILS

Jackfruit is heavy as well as bulky and actual recovery of bulbs or edible portion
varies from 20% to 25%. Jack fruit is a highly fibrous fruit. It has a thick wasted skin
enclosing seeded fruit pods to which also adhere lots of fibrous tissue. After cutting
the fruit in several pieces, the bulbs are removed manually. As the fruit contains
highly sticky latex, small quantity of edible oil is applied on hands and then seeds
are removed from bulbs.

Process for Jackfruit Chips: Fully matured unripe jackfruit is the basic raw
material for fried jack chips. The edible bulbs from the Jackfruit are extracted by
manual cutting. The fruits are cut along their equatorial axis with the help of a sharp
stainless steel knife smeared with edible oil. The bulbs are then carefully separated
from the rind and placenta. Care should be taken to handle the bulbs with minimum
damage. The freshly extracted whole bulbs are deseeded and sliced as per the
required size by using Jackfruit chips cutting machine to obtain finger chips of size
approximately 15×40 mm. The bulb slices are taken for physical and biochemical
analysis whenever required. The cut bulb slices are blanched in hot water of 90
Degree C, containing 0.1% of KMS for 5 minutes followed by draining at room
temperature for 15 min. A drained bulb slices (250 gm) are deep fat fried using
cooking grade sunflower oil. The Slice: Oil Ratio is maintained constant at 1:4 for all
frying trails at three different temperatures like 160, 180 and 200°C for three
different frying time periods 6, 7, 8 min. The mixture of salt and dry chili powder at
the ratio of 2:1 @ 8 gm/100 gm is added to the fried chips. They are packed in
polythene bags and sealed with sealing machine.

Process for Jackfruit Pickle: For preparing pickle, unripe jackfruits are used.
Apply oil to a knife and peel the jackfruit. Peel the skin. Cut the peeled fruits into 12-
18 mm thick slices. Prepare a 5% common salt solution by mixing salt with water,
50 g salt/l. Place the slices in a container and cover with brine solution. Weigh them
down to keep them submerged in the brine. Drain the slices after 24 hours using a
stainless steel sieve and wash them to remove the excess salt. Grind and mix the
following spices (for 1 kg peeled jackfruit): 2.5 g turmeric powder, 25 g coriander
seeds, 10-20 g chili powder, 10 g salt. 150g sugar. Add the spice mix and vinegar
(10 ml/kg) to the jackfruit slices and cook the mix.in a stainless steel boiling pan for
30 minutes while stirring. Pour the pickle into pre-sterilized jars and seal. Cool the
jars at room temperature, then label.

Process for Jackfruit Jam: Ripe fruits are cut into several pieces and the bulbs
are removed by hand. The bulbs are then cooked for 15 minutes and pulped, the
core being removed. Cut the end of the bulb to remove the seeds, and grind the
bulbs to pulp using a blender. Dissolve 10 gm pectin per kg mixed fruit pulp in some
water and add to the mixture. Add 1 kg sugar per kg mixed fruit pulp and mix. Heat
the mixture in a stainless steel vessel while stirring continuously until the total sugar
content is 68-70º C, pour into pre-sterilised jam jars and seal. The ideal pouring
temperature is 82-85º C. Cool jars at room temperature, then labelling is carried out.
The colour of the final product is yellow, TSS is 68° Brix, the consistency is semi
solid and the flavour is pleasant. But the product is somewhat sticky, so further
refinement of the process is needed to develop a marketable product.

Process for Dehydrated Jackfruit: Cut fruit in half lengthwise, Carve out the core
of the fruit, Scoop out the bulbs, Cut the end of the bulbs to remove the seeds, Cut
the deseeded bulb into 2 or 4 pieces, Blanch the fruit segments by plunging into
boiling water for 2 minutes and cool them rapidly under clean cold water. Place the
blanched segments in a single layer on mesh dryer trays. Put them close together
but not touching to achieve the maximum capacity and an even rate of drying. Load
trays into the drying cabinet and dry at 55º C for 6-7 hours until the moisture content
is reduced to 5%. Remove trays and pack dried fruits immediately in moisture proof
containers e.g. 400 gauge polythene or polypropylene pouches, and heat-seal
them.
 PROJECT AT A GLANCE
1 Name of the Entreprenuer XXXXXXX

2 Constitution (legal Status) XXXXXXX

3 Father's/Spouce's Name XXXXXXXX

4 Unit Address XXXXXXXX

Taluk/Block:
District : XXXXX
Pin: XXXXX State:
E-Mail XXXXX
Mobile XXXXX

5 Product and By Product : Jackfruit Processing

6 Name of the project / business activity proposed : Jackfruit Processing

7 Cost of Project : Rs24.00lac

8 Means of Finance
Term Loan Rs.14.01 Lacs
KVIC Margin Money - As per Project Eligibility
Own Capital Rs.2.4 Lacs
Working Capital Rs.7.59 Lacs

9 Debt Service Coverage Ratio : 5.06

10 Pay Back Period : 5 Years

11 Project Implementation Period : 8 Months

12 Break Even Point : 25%

13 Employment : 13 Persons

14 Power Requirement : 25.00 HP

15 Major Raw materials : Ripe and Unripe Jackfruit

16 Estimated Annual Sales Turnover : 60.75 Lacs

16 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lacs)

Particulars Amount
Land 2500 Sqft Rented/Owned
Building /shed 2000 Sq Ft) 5.00
Plant & Machinery 9.00
Furniture & Fixtures 0.75
Pre-operative Expenses 0.82
Working Capital Requirement 8.44
Total 24.00

MEANS OF FINANCE
Particulars Amount
Own Contribution @10% 2.40
Term Loan 14.01
Workign Capital Finance 7.59

Total 24.00

General Special
Beneficiary's Margin Money 10% 5%
(% of Project Cost)

PLANT & MACHINERY

PARTICULARS QTY. RATE AMOUNT IN RS.

Fruit Dryer Machine 1 750,000.00
Pulper 1
Steam Jacketed Kettle 1
Mini Boiler 1
Electric deep Fryer 2
Can Sealer 1
Cap Sealing Machine 1
Plastic Bag Sealing Machine 2
Stirrers, SS Utensils, Containers, Coating Pans, Weighing LS 100,000.00
Scales, Hand Gloves,Miscellaneous Tools and Equipment

Testing Equipment LS 50,000.00

Total 900,000.00
PROJECTED CASH FLOW STATEMENT

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

SOURCES OF FUND

Share Capital 2.40 -

Reserve & Surplus 13.25 16.95 21.13 25.15 29.00
Depriciation & Exp. W/off 1.89 1.67 1.44 1.25 1.08
Increase in Cash Credit 7.59 - - - -
Increase In Term Loan 14.01 - - - -
Increase in Creditors 3.11 0.52 0.52 0.52 0.52
Increase in Provisions 0.36 0.04 0.04 0.04 0.05

TOTAL : 42.60 19.17 23.13 26.97 30.65

APPLICATION OF FUND

Increase in Fixed Assets 14.75 - - - -

Increase in Stock 8.51 1.42 1.42 1.42 1.42
Increase in Debtors 3.04 0.84 0.56 0.56 0.56
Increase in Deposits & Adv 2.50 0.25 0.28 0.30 0.33
Repayment of Term Loan - 3.50 3.50 3.50 2.85
Taxation 1.32 1.69 4.23 5.03 5.80

TOTAL : 30.12 7.71 9.98 10.82 10.96

Opening Cash & Bank Balance - 12.49 23.95 37.10 53.24

Add : Surplus 12.49 11.46 13.15 16.15 19.69

Closing Cash & Bank Balance 12.49 23.95 37.10 53.24 72.93
PROJECTED BALANCE SHEET

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

SOURCES OF FUND

Capital Account 2.40 2.40 2.40 2.40 2.40

Retained Profit 11.92 27.17 44.08 64.20 87.40

Term Loan 14.01 10.51 7.01 3.50 0.65

Cash Credit 7.59 7.59 7.59 7.59 7.59
Sundry Creditors 3.11 3.62 4.14 4.66 5.18
Provisions & Other Liab 0.36 0.40 0.44 0.48 0.53

TOTAL : 39.39 51.70 65.65 82.83 103.75

APPLICATION OF FUND

Fixed Assets ( Gross) 14.75 14.75 14.75 14.75 14.75

Gross Dep. 1.89 3.56 5.00 6.25 7.34
Net Fixed Assets 12.86 11.19 9.75 8.50 7.41

Current Assets
Sundry Debtors 3.04 3.88 4.44 5.01 5.57
Stock in Hand 8.51 9.92 11.34 12.76 14.18
Cash and Bank 12.49 23.95 37.10 53.24 72.93
Deposits & Advances 2.50 2.75 3.03 3.33 3.66

TOTAL : 39.39 51.70 65.65 82.83 103.75

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

A) SALES
Gross Sale 60.75 77.63 88.88 100.13 111.38

Total (A) 60.75 77.63 88.88 100.13 111.38

B) COST OF SALES

Raw Mateiral Consumed 31.05 36.23 41.40 46.58 51.75

Elecricity Expenses 2.15 2.51 2.86 3.22 3.58
Repair & Maintenance - 0.78 0.89 1.00 1.11
Labour & Wages 8.98 9.87 10.86 11.95 13.14
Depriciation 1.89 1.67 1.44 1.25 1.08
Consumables,packaging and Other
Expenses 3.04 3.88 4.44 5.01 5.57
Cost of Production 47.10 54.93 61.90 69.00 76.24

Add: Opening Stock /WIP - 5.40 6.30 7.20 8.10

Less: Closing Stock /WIP 5.40 6.30 7.20 8.10 9.00

Cost of Sales (B) 41.70 54.03 61.00 68.10 75.34

C) GROSS PROFIT (A-B) 19.05 23.59 27.87 32.02 36.04

31% 30% 31% 32% 32%
D) Bank Interest (Term Loan ) 1.21 1.46 1.06 0.65 0.26
Bank Interest ( C.C. Limit ) 0.87 0.87 0.87 0.87 0.87
E) Salary to Staff 2.51 2.76 3.03 3.34 3.67
F) Selling & Adm Expenses Exp. 1.22 1.55 1.78 2.00 2.23

TOTAL (D+E) 5.80 6.64 6.74 6.87 7.03

H) NET PROFIT 13.25 16.95 21.13 25.15 29.00

I) Taxation 1.32 1.69 4.23 5.03 5.80

J) PROFIT (After Tax) 11.92 15.25 16.90 20.12 23.20

COMPUTATION OF MANUFACTURING OF JACKFRUIT PROCESSING

Items to be Manufactured Jackfruit Chips 20.00 MT

Jackfruit Pickles 20.00 MT

Jackfruit Jam 10.00 MT

Dehydrated Jackfruit 5.00 MT

Manufacturing Capacity per day 0.225 MT

No. of Working Hour 8

No of Working Days per month 25

No. of Working Day per annum 200

Total Production per Annum 45.00 MT

Year Capacity MT
Utilisation

IST YEAR 60% 27.00

IIND YEAR 70% 31.50
IIIRD YEAR 80% 36.00
IVTH YEAR 90% 40.50
VTH YEAR 100% 45.00

COMPUTATION OF RAW MATERIAL

Item Name Quantity of Recovery Unit Rate of Total Cost

Raw Material
Per Annum (100%)
/MT /MT
Unripe Jackfruit 100% 150.00 9,500.00 1,425,000.00
Ripe Jackfruit 100.00 10,500.00 1,050,000.00
Sugar, Pectin, Citric Acid, Preservatives, Edible
Oil, Mustard Oil,Salt, Spices etc.
LS 1,687,500.00
Packaging Material including Cans, Plastic Jar,
LS 1,012,500.00
Pouches, PackagingCardboard Boxes and

Total (Rounded off in lacs) 5,175,000.00

Annual Consumption cost ( In Lacs) 51.75

Raw Material Consumed Capacity Amount (Rs.)

Utilisation

IST YEAR 60% 31.05

IIND YEAR 70% 36.23
IIIRD YEAR 80% 41.40
IVTH YEAR 90% 46.58
VTH YEAR 100% 51.75
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

Finished Goods
(30Days requirement) 5.40 6.30 7.20 8.10 9.00
Raw Material
(30 Days requirement) 3.11 3.62 4.14 4.66 5.18

Closing Stock 8.51 9.92 11.34 12.76 14.18

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Total
Amount
Stock in Hand 8.51

Sundry Debtors 3.04

Total 11.54
Sundry Creditors 3.11

Working Capital Requirement 8.44

Margin 0.84

Working Capital Finance 7.59

BREAK UP OF LABOUR

Particulars Wages No of Total

Per Month Employees Salary
Supervisor Food specialist 12,000.00 1 12,000.00
Skilled Worker 8,000.00 4 32,000.00
Unskilled Worker 6,000.00 6 36,000.00

68,000.00
Add: 10% Fringe Benefit 6,800.00
Total Labour Cost Per Month 74,800.00
Total Labour Cost for the year ( In Rs. Lakhs) 11 8.98

BREAK UP OF SALARY

Particulars Salary No of Total

Per Month Employees Salary
Manager self
Accountant 9,000.00 1 9,000.00
Sales 10,000.00 1 10,000.00
Total Salary Per Month 19,000.00

Add: 10% Fringe Benefit 1,900.00

Total Salary for the month 20,900.00

Total Salary for the year ( In Rs. Lakhs) 2 2.51

COMPUTATION OF DEPRECIATION

Plant &
Description Land Building/shed Machinery Furniture TOTAL

Rate of Depreciation 10.00% 15.00% 10.00%

Opening Balance Leased - - - -
Addition - 5.00 9.00 0.75 14.75
- 5.00 9.00 0.75 14.75
Less : Depreciation - 0.50 1.35 0.04 1.89
WDV at end of Ist year - 4.50 7.65 0.71 12.86
Additions During The Year - - - - -
- 4.50 7.65 0.71 12.86
Less : Depreciation - 0.45 1.15 0.07 1.67
WDV at end of IInd Year - 4.05 6.50 0.64 11.19
Additions During The Year - - - - -

- 4.05 6.50 0.64 11.19

Less : Depreciation - 0.41 0.98 0.06 1.44
WDV at end of IIIrd year - 3.65 5.53 0.58 9.75
Additions During The Year - - - - -
- 3.65 5.53 0.58 9.75
Less : Depreciation - 0.36 0.83 0.06 1.25
WDV at end of IV year - 3.28 4.70 0.52 8.50
Additions During The Year - - - - -
- 3.28 4.70 0.52 8.50
Less : Depreciation - 0.33 0.70 0.05 1.08
WDV at end of Vth year - 2.95 3.99 0.47 7.41
REPAYMENT SCHEDULE OF TERM LOAN 11.5%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

IST YEAR Opening Balance

Ist Quarter - 14.01 14.01 - - 14.01
Iind Quarter 14.01 - 14.01 0.40 - 14.01
IIIrd Quarter 14.01 - 14.01 0.40 - 14.01
Ivth Quarter 14.01 - 14.01 0.40 - 14.01
1.21 -
IIND YEAR Opening Balance
Ist Quarter 14.01 - 14.01 0.40 0.88 13.14
Iind Quarter 13.14 - 13.14 0.38 0.88 12.26
IIIrd Quarter 12.26 - 12.26 0.35 0.88 11.39
Ivth Quarter 11.39 11.39 0.33 0.88 10.51
1.46 3.50
IIIRD YEAR Opening Balance
Ist Quarter 10.51 - 10.51 0.30 0.88 9.63

Iind Quarter 9.63 - 9.63 0.28 0.88 8.76

IIIrd Quarter 8.76 - 8.76 0.25 0.88 7.88
Ivth Quarter 7.88 7.88 0.23 0.88 7.01
1.06 3.50
IVTH YEAR Opening Balance
Ist Quarter 7.01 - 7.01 0.20 0.88 6.13
Iind Quarter 6.13 - 6.13 0.18 0.88 5.25
IIIrd Quarter 5.25 - 5.25 0.15 0.88 4.38
Ivth Quarter 4.38 4.38 0.13 0.88 3.50
0.65 3.50
VTH YEAR Opening Balance
Ist Quarter 3.50 - 3.50 0.10 0.88 2.63
Iind Quarter 2.63 - 2.63 0.08 0.88 1.75
IIIrd Quarter 1.75 - 1.75 0.05 0.55 1.20
Ivth Quarter 1.20 1.20 0.03 0.55 0.65

0.26 2.85
CALCULATION OF D.S.C.R

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

CASH ACCRUALS 13.81 16.92 18.35 21.37 24.29

Interest on Term Loan 1.21 1.46 1.06 0.65 0.26

Total 15.02 18.38 19.41 22.03 24.55

REPAYMENT
Instalment of Term Loan 3.50 3.50 3.50 2.85 2.85
Interest on Term Loan 1.21 1.46 1.06 0.65 0.26

Total 4.71 4.96 4.56 3.51 3.11

DEBT SERVICE COVERAGE RATIO 3.19 3.70 4.25 6.28 7.89

AVERAGE D.S.C.R. 5.06

COMPUTATION OF SALE

Particulars IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

Op Stock - 2.70 3.15 3.60 4.05

Production 27.00 31.50 36.00 40.50 45.00

27.00 34.20 39.15 44.10 49.05

Less : Closing Stock 2.70 3.15 3.60 4.05 4.50

Net Sale 24.30 31.05 35.55 40.05 44.55

Sale Price per MT 250,000.00 250,000.00 250,000.00 250,000.00 250,000.00

Sale (in Lacs) 60.75 77.63 88.88 100.13 111.38

Particulars Qty Ton Price per Unit Amount (Rs.)

(Rs.)
Jackfruit Chips 20 230000 4600000
Jackfruit Pickle 10 280000 2800000
Jackfruit Jam 10 210000 2100000
Dehydrated Jackfruit 5 125000 625000
Total Sales per annum at 100% capacity (Rs) 45 -- 10125000
COMPUTATION OF ELECTRICITY
(A) POWER CONNECTION

Total Working Hour per day Hours 8

Electric Load Required HP 25
Load Factor 0.7460
Electricity Charges per unit 8.00
Total Working Days 300
Electricity Charges ( 8 Hrs Per day ) 358,080.00

Add : Minimim Charges (@ 10%)

(B) DG set
No. of Working Days 300 days
No of Working Hours - Hour per day
Total no of Hour -
Diesel Consumption per Hour 8
Total Consumption of Diesel -
Cost of Diesel 65.00 Rs. /Ltr
Total cost of Diesel -
Add : Lube Cost @15% -
Total -

Total cost of Power & Fuel at 100% 3.58

Year Capacity Amount

(in Lacs)

IST YEAR 60% 2.15

IIND YEAR 70% 2.51
IIIRD YEAR 80% 2.86
IVTH YEAR 90% 3.22
VTH YEAR 100% 3.58
BREAK EVEN POINT ANALYSIS

Year I II III IV V

Net Sales & Other Income 60.75 77.63 88.88 100.13 111.38
Less : Op. WIP Goods ‐ 5.40 6.30 7.20 8.10
Add : Cl. WIP Goods 5.40 6.30 7.20 8.10 9.00

Total Sales 66.15 78.53 89.78 101.03 112.28

Variable & Semi Variable Exp.

Raw Material & Tax 31.05 36.23 41.40 46.58 51.75

Electricity Exp/Coal Consumption at 85% 1.83 2.13 2.43 2.74 3.04
Manufacturing Expenses 80% 2.43 3.73 4.27 4.81 5.35
Wages & Salary at 60% 6.89 7.58 8.34 9.17 10.09
Selling & adminstrative Expenses 80% 0.97 1.24 1.42 1.60 1.78
Intt. On Working Capital Loan 0.87 0.87 0.87 0.87 0.87
Total Variable & Semi Variable Exp 44.04 51.78 58.73 65.77 72.88

Contribution 22.11 26.75 31.04 35.26 39.39

Fixed & Semi Fixed Expenses

Manufacturing Expenses 20% 0.61 0.93 1.07 1.20 1.34

Electricity Exp/Coal Consumption at 15% 0.32 0.38 0.43 0.48 0.54
Wages & Salary at 40% 4.59 5.05 5.56 6.11 6.73
Interest on Term Loan 1.21 1.46 1.06 0.65 0.26
Depreciation 1.89 1.67 1.44 1.25 1.08
Selling & adminstrative Expenses 20% 0.24 0.31 0.36 0.40 0.45
Total Fixed Expenses 8.86 9.80 9.91 10.11 10.39

Capacity Utilization 60% 70% 80% 90% 100%

OPERATING PROFIT 13.25 16.95 21.13 25.15 29.00
BREAK EVEN POINT 24% 26% 26% 26% 26%
BREAK EVEN SALES 26.52 28.77 28.67 28.95 29.62
 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN assume no
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