Carbonated Soft Drink PDF

CARBONATED SOFT DRINK INTRODUCTION: Carbonated soft drinks constitute the major category in Aerated Soft Drinks, the
other two categories being juice based soft drinks and squash, sharbat and syrup. Various types of soft drinks including orange, lime and lemon based drinks as well as soda water fall in the category of aerated soft drinks. These water drinks consist of water, carbon-di-oxide, colour, additives and preservative. In a tropical country like India, which has oppressive summers, there is substantial market for aerated soft drinks. MARKET POTENTIAL: The all India production of aerated soft drinks is about 900 crore bottles per year, of which the production of carbonated soft drinks is about 70% i.e. 630 crore bottles. The per capita consumption of carbonated drinks is about 4 bottles per year, which is low compared to other developing countries such as Pakistan -13, Bangladesh 8, Egypt 3, and extremely low compared to USA where it is 350 bottles. Hence there is considerable potential for consumption to grow. Based on the average per capita consumption of 4 bottles and considering the population of 385 lakhs in the north-eastern region, the demand for aerated water drinks is estimated at 15.40 crore bottles per year. The market is dominated by brands of leading all India companies such as Parle (46%), Pure Drinks (23%), McDowel (7%). Every State has its own local brands which have their own market. There are one or two local brands, which have a limited production. Assuming that local units can get 5% of the market, i.e. 77 lakh bottles and considering the capacity of typical tiny unit of about 15 lakh bottles per year. there appears to be scope for 2 or 3 units to be set up. PLANT CAPACITY: The production basis would be as under : No.of bottles per crate 24 bottles Daily production 200 crates Annual working days 300 Average capacity utilization 60% Annual production at 60% capacity utilization: * Crates 36,000 * Bottles 8.64 lakh. It is proposed to produce orange, cola, lime/lemon and soda based drinks as given below: Crates/Yr. Orange . 18,000 Cola . 7,200 Lime/Lemon . 7,200 Soda . 3,600 36,000 ===== RAW MATERIALS: The main raw materials required are sugar, citric acid, essence, activated carbon, caustic soda, glucose & carbon-di-oxide and the annual requirements are as under: Sl.No. 1. 2. 3. 4. 5. 6. 7. Items Sugar Citric Acid Essence Activated carbon Caustic Soda Liquid Glucose Carbon-di-oxide Per year 8.4 tonne 360 kg. 81 kg 64.8 kg 0.72 tonne 7.2 kg. 1432.8 kg.
All the above materials would be available from the open market in Guwahati.
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PROCESS: The main process steps are: i) Making concentrate of sugar, glucose, citric acid, essence and preservatives. ii) Feeding the concentrate into dosing machine. iii) Releasing the concentrate in each bottle in a required proportion. iv) Filling the bottle with treated water. v) Placing crown-cork on the bottle and passing through a shaker for proper mixing. MACHINERY: The major equipment required for the production of carbonated soft drinks are: 1. Automatic bottle filling machine 2. Automatic bottle washing machine 3. Carbonation unit 4. Bottle collection & revolving table 5. Steam jacket tank 6. Water treatment plant 7. Baby boiler 8. Refrigeration unit 9. Chain conveyor 10. Other accessories 11. Crown corking machine INFRASTRUCTURE The main infrastructure facilities required are Land . Shed . Power . Water . LOCATION: The suggested locations are Assam Tripura TOTAL CAPITAL REQUIREMENT The total capital requirement including fixed capital and working capital is estimated at Rs 25.07 lakhs as follows: A. Fixed Capital: Land Building Machinery Miscellaneous fixed assets Preliminary and pre-operative expenses (Rs in lakh) 2.00 6.00 10.20 1.25 1.80 Total (A) 21.25 ==== 1 month 1 week 1 month 1 week Total (B) Total (A)+(B) 1.18 0.73 0.93 0.98 3.82 ==== 25.07
1 no. 1 no. 1 set 1 no. 1 no. 1 no. 1 no. 1 no. 1 no. 1 no.
2000 sq.ft. 1000 sq.ft 20 KW 2000 ltr. Per day.
: :
Tinsukia, Silchar and Tezpur Agartala.
B.
Working Capital: Raw materials & packing materials (Including bottle crates) Finished goods Working expenses Receivables
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Note: Working capital may be financed as: Bank Finance Margin Money
.. ..
Rs 2.86 lakhs Rs 0.96 lakhs Rs 3.82 lakhs ==========
MEANS OF FINANCE: The project cost of Rs 25.07 lakhs including margin money for working capital may be financed as under: Promoters contribution (25%) Rs 6.27 lakhs Term Loan (75%) Rs 18.80 lakhs Rs 25.07 lakhs =========== OPERATING EXPENSES The annual operating expenses are estimated at Rs 34.00 lakhs as given below: (Rs in lakhs) 1. Raw materials (refer annexure) 14.15 2. Utilities and packing materials 3.00 3. Wages & Salaries 5.50 4. Overheads 2.70 5. Selling expenses @10% on annual sales 4.21 6. Interest on term loan 2.26 7. Interest on Bank Finance for working capital 0.43 8. Depreciation @10% 1.75 34.00 ===== SALES REALISATION: The market price of a Gold Spot, Thumps Up etc. is in the range of Rs 15.00 to 16.00 per bottle. Providing for distributors/dealers commission, sales tax etc. the ex-factory realization would be about Rs 10.00 to 10.50 per bottle. Considering that a tiny unit would have to face competition from premier brands, a market penetration price of Rs 5/- per bottle i.e. Rs 120/- per crate is considered for orange, lime, lemon drinks and Rs 96/- per crate for soda water. On this basis, the annual sales realization is estimated at Rs 42.12 lakhs as under: Name Orange Cola Lime/Lemon Soda Water Total No.of Crates 18,000 7,200 7,200 3,600 Rs. per Crate 120/120/120/90/Amount (Rs in lakhs) 21.60 8.64 8.64 3.24 42.12
PROFITABILITY: Based on the sales realization and the operating expenses, the profit at 60% capacity utilization would be Rs 8.12 lakhs per year. This works out to a return on investment of 32%. The plant will break even at 55% of the rated capacity. HIGHLIGHTS The major highlights of the project are as follows: Total capital requirement Promoters contribution Annual sales realization Annual operating expenses Annual profit (pre-tax) Pre-tax Return on Sales Break Even Point No.of persons employed : : : : : : : : Rs 25.07 lakhs Rs 6.27 lakhs Rs 42.12 lakhs Rs 34.00 lakhs Rs 8.12 lakhs 19% 55% 15
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MACHINERY SUPPLIERS: 1. M/s Larsen & Tourbro Ltd., Ballard Estate, P.B. No. 278, Duggal Road, Mumbai 1 M/s Rita Agencies, No. 3, 1 Cresuant Road, Park Road, Gandhi Nagar, Chennai 20. 3. M/s Mohan Otmann & Herbert Ltd., 1-79 Okhla Industrial Area Phase-2, New Delhi 20
2.
ANNEXURE COST OF RAW MATERIALS AND PACKING MATERIALS Sl. No. 1. 2. 3. 4. 5. 6. 7. 8. Name of Raw Materials Sugar Citric Acid Essence Activated Carbon Caustic Soda Liquid Glucose Carbon-di-oxide Pilfer proof caps TOTAL Quantity 8.40 T 360 Kg 81 Kg 65 Kg 720 Kg 7.2 Kg 1433 Kg 8.64 Lakh Rate (Rs) 18000/T 145/Kg 900/Kg 70/Kg 30/kg 5/Kg 40/Kg 0.80/Cap Total Amount (Rs in lakhs) 1.51 0.52 0.73 0.05 0.22 0.04 0.57 6.91 10.55
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CARBONATED SOFT DRINK INTRODUCTION: Carbonated soft drinks constitute the major category in Aerated Soft Drinks, the

2000 sq.ft. 1000 sq.ft 20 KW 2000 ltr. Per day.

Tinsukia, Silchar and Tezpur Agartala.

Rs 2.86 lakhs Rs 0.96 lakhs Rs 3.82 lakhs ==========

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