Pallu Original

Mini Project Report
on
…………………………Research Project Title……..………………………
Submitted in partial fulfillment of the requirements for the Two Years
Masters of Business Administration

(Affiliated To Dr. A.P.J. Abdul Kalam Technical University Uttar Pradesh, Lucknow)
Session: 2020-22
Under Supervision of: Submitted By:
Dr./ Mr. / Ms :- Sandeep Singh Student Name:- Abhishek pal
Designation :- Proffssor Roll No:- MBA/08/007
SMS, Varanasi MBA II Semester
SMS, Varanasi
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CERTIFICATE
Certified that this Mini- Project Report entitled INDUSTRY A NALYSIS AND
APPLICATION OF EMERGING TECHNOLOGIES IN THE INDIAN
PACAKAGED FRUIT BASED BEVERAGES INDUSTRY has been prepared by
MR. ABHISHEK PAL of the MBA Semester –II during the session 2020-2022 under
my supervision .
The Mini –Project Repor t is up to the standard and I forward it to the Director ,
School of Management Sciences, Varanasi for getting it evaluated as per the Ordinance
governing the MBA Course.
DATE-
(SIGNATURE)
(NAME)
( DESIGNATION )
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DECLARATION
I hereby declare that the information presented in this Mini-Project Report is correct to
the best of my knowledge and the analysis is as per the norms and as guideline
provided for the project . I have utilized the requisite concepts and applied the required
methodologies to analyze the data collected to reach the conclusion present in the
project .
I feel extremely exhilarated to have completed this mini-project under the able and
inspiring guidance of Dr. SANDEEP SINGH ( PROFESSOR ). His guidance and
timely encouragement has infused courage in me to complete work successfully .
I claim the project to be my indigenous work and has not been published anywhere else.
(ABHISHEK PAL)
MBA-II SEMESTER
ROLL.NO. MBA/08/007
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ACKNOWLEDGEMENT
Many have contributed to the successful completion of this mini-project , I would

like to place on record my grateful thanks to each of them , and report would be
incomplete without giving due credit to them .
I feel extremely exhilarated to have completed this mini project under the able and
expiring guidance of DR. SANDEEP SINGH (PROFESSOR) . His
guidance and timely encouragement has infused courage in me to complete the work
successfully .
In the end I Sincerely, thank the entire responded, friends and all others who helped me
in completion of this MINI-PROJECT REPORT.
ABHISHEK PAL
MBA-II SEMESTER
ROLL NO. MBA/08/007
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PREFACE
Indian Packed fruits beverages market is still at a nascent stage as usage
levels are much lower compared to other peer markets due to limited
awareness about the products and their benefits as well as price conscious
customers. However, the market has showcased significant growth in the last
5 years with new and complex molecules enhancing properties such as
strength, reduced water requirement, etc.
Entry of global fruits market in Indian markets have further intensified the
competition and boosted the market growth
This project entirely explains the the complexity of packaged fruit beverages
and helps us to understand it clearly .This further explain the future
prospectus of this industry and its growth .It tells about the advantage of
packing system which help in the durability of the product and thus storage.
CONTENT
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PROJECT AT A GLANCE..........................................................................................................3
INTRODUCTION.....................................................................................................................4
1. BACKGROUND......................................................................................................5
2. PROJECT BACKGROUND.......................................................................................7
3. ORGANIZATIONAL AND PROMOTERS DETAILS.....................................................7
4. PROJECT DESCRIPTION & FLOW SHEET.................................................................9
5. PROCUREMENT STRATEGY OF RAW MATERIAL & OTHER INPUTS.11
6. MARKETING STRATEGY......................................................................................11
7. LIST OF STATUTORY CLEARANCES REQUIRED.....................................................12
8. LAND DETAILS....................................................................................................12
9. PROJECT COST....................................................................................................13
11. TECHNO-COMMERCIAL VIABILITY OF THE PROJECT............................................16
12. FINANCIAL ANALYSIS..........................................................................................16
13. PROJECT IMPACT................................................................................................27
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SECTION-1
Introduction
Bihar is seventh largest economy in India in terms of food production and produces different kinds of
cereals, pulses, oilseeds and cash crops.As a traditional foodgrain economy, the major food crops grown
in Bihar are rice, wheat, maize and pulses. The State has has recorded an increase in production of
cereals from 143.21 lakh tonnes in 2017-18 to 158.58 lakh tonnes in 2018-19 which is an increase of 4.21
percent. This is due to high productivity, which grew from 2328 kg per hectare in 2014-15 to 2636 kg per
hectare in 2018-19 with a registered growth of 4.31 percent. The production of wheat increased from a
modest quantum of 35.70 lakh tonnes in 2014-15 to about 64.66 lakh tonnes in 2018-19. For maize, the
production increased from24.79 lakh tonnes to 31.94 lakh tonnes during the same period. Though the
area under maize hassteadily increased in Bihar, there are considerable fluctuations in yield leading to
instability inproduction.
Horticulture has emerged as one of the most important agricultural enterprises in Bihar in the last two
decades, as it offers a wide range of opportunities for farmers to diversify their cropping pattern to include
fruits, vegetables, flowers, spices, plantation crops, medicinal and aromatic plants. The increasing
diversification provides opportunities for absorption of labour and earning remunerative returns to the
farmers. The horticultural products form an important component of food and nutritional security in Bihar.
To meet the growing demand for affordable and high-quality fruits in local, national, and international
markets, this sector is experiencing substantial competition. Since horticultural crops are highly
perishable and seasonal in nature, they require adequate post-harvest infrastructure. The State
Government is promoting horticulture sector in a big way in Bihar to help the farmers.
The total production of fruits in Bihar increased from 41.05 lakh tonnes in 2016-17to 42.29 lakh tonnes in
2018-19, registering an annual growth rate of 4.9 percent. Except pineapple, all other fruits registered
growth in production in the last three years. The state is performing well in production of litchi, amounting
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to 3.07 lakh tonnes cultivated in an area of 0.36 lakh hectares in2018-19. This was possible due to
increase in both its acreage and productivity. Substantial increase in production was observed for banana
(2.1 percent), papaya (4.1 percent), mango (3.5percent), guava (8.2 percent), watermelon (10.7 percent),
and muskmelon (11.8 percent) during2016-17 to 2018-19.
Realizing the potential that exists in agricultural and horticultural processing in the state, Govt. of Bihar
has launched a “Bihar Agri Investment Promotion Policy 2020”in the state. This Scheme provides support
for setting up food processing units in the state. This is aimed at addressing various constraints like
infrastructure, technology, skills and marketing faced by the food processing sector in the state and to
help them compete with industry standards at national and international level.
There has been an appreciable increase in the export of processed foods which includes fruit juices. With
the fast growth of the urban areas and the growing living standards of the Indian people, there is a good
potential to develop this industry in small-scale sector. Considering the potential market opportunity of
such units, this detail project report has been developed. The main objective of such initiative is to
productively utilize the abundantly available resources of the local area and to enable uninterrupted
supply of the products to market throughout the year1.
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1. Background
Definition:
Packaged fruit juice is obtained mechanically by squeezing or deliquescing different types of fruits
or prepared through pulp extract of fruits. Every fruit juice has its own flavor, taste and health
benefits e.g. watermelon hydrates body, lemon juice provides necessary Vitamin C to increase
immunity and avocado juice provides natural energy to the body. Different types of packaged fruit
juices are of mango, orange, lemon, pineapple, litchi, guava, apple, etc.
Global Scenario
Unlike last decade the consumption of carbonated soft drink, flavoured drinks, colas etc has
witnessed slack in consumption mainly due to high sugar
content, use of artificial ingredients for colouring, flavors Predicted growth of RTSFB
etc which may have ill effects in the body. It is evident that $ 173 B
there has been a gradual shift towards consumption of

natural fruit juices/drinks. The global market for fruit has
already reached a volume of 45.4 Billion litres by the year
2018, with a handsome CAGR of approx. 2% between
2011-2018. It is predicted that this market may further
climbed a staggering figure of50.6 billion liters by 2024. It
is going to be one of the profitable sectors in the world
with projection of a market of Global $90 billion by 2025 at
a spectacular CAGR of 6.2% from 2017 to 20252.
The driving forces of the growth of RTS juice worldwide are:

2019 2024
Increase in demand of healthy drinks
Rise in demand for high scale of volume in beverage industry
Decrease in demand of colas, carbonated drinks due to high sugar content
Preservative free and sugar-free fruit juice
Growing popularity of cold pressed juice
Indian Scenario
India cultivates multiple variety of high-quality fruits like mango, orange, pineapple, litchi, guava,
lemon etc round the year and hot to moderate weather conditions in India propels high demand of
fruit juice in the country. The sector is growing year on year and the present revenue from the
sector amounts to US$2,106m in 2020, and the market is likely to prosper at 8.3% (CAGR 2020-
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2025).The market's largest segment is other juice, Juice Mixtures & Smoothies with a market
volume of US$1,216m in 20203.
Bihar
Bihar is predominately agrarian State with almost 75 percent of people depend on agriculture for
their livelihood. Horticulture has emerged as one of the most important activities to boost
agricultural enterprises in Bihar in the last two decades, as it offers a wide range of opportunities
for farmers to diversify their cropping pattern to include fruits, vegetables, flowers, spices,
plantation crops, medicinal and aromatic plants. The increasing diversification provides
opportunities for absorption of labour and earning remunerative returns to the farmers. The
horticultural products could be an important component of food towards nutritional security in
Bihar. To meet the growing demand for affordable and high-quality fruits in local, national, and
international markets, this sector is experiencing substantial competition. Since horticultural crops
are highly perishable and seasonal in nature, they require adequate post-harvest infrastructure.
The State Government is promoting horticulture sector in a big way in Bihar to help the farmers.
The total production of fruits in Bihar increased from 41.05 lakh tonnes in 2016-17 to 42.29 lakh
tonnes in 2018-19, registering an annual growth rate of 4.9 percent. Except pineapple, all other
fruits registered growth in production in the last three years. The state is performing well in
production of litchi, amounting to 3.07 lakh tonnes cultivated in an area of 0.36 lakh hectares in
2018-19. This was possible due to increase in both its acreage and productivity. Substantial
increases in production was observed for banana (2.1 percent), papaya (4.1 percent), mango (3.5
percent), guava (8.2 percent), watermelon (10.7 percent), and muskmelon (11.8 percent) during
2016-17 to 2018-19.
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2. Project Background
The unit has proposed to set up a 500 Ltr/hr. RTS Juice Processing unit at XYZ location. The main
product is RTS Fruit Juice.
The main objective of the fruit juice processing is to preserve the perishable fruits in its original form that
may be stored and supplied to different markets locally or nationally throughout the year. Processing also
helps in changing fruits in forms which are easy to use and convenient to prepare any other products.
The fruits that will be used for processing not only help in reducing wastage during handling however it
also helps in adding nutrition and consumable properties of the fruits. There has been tremendous
increase in consumption of packaged fruit drinks due to changing lifestyles and consumption habits of
people. The product is even gaining popularity in rural and smaller towns due to its convenience and easy
to consume as well as the lower price tag with handy packaging. After processing, the products would be
supplied to the market through distributors/ wholesalers/retailers.
Current status of the unit:
a. Items to be manufactured: RTS Beverage (Juice)
b. Capacity of the plant: 500 Ltr/hr.
c. Source of power generation/electricity: Electricity form BSPHCL/SBPDCL, DG Set
d. Source of water supply: Own Borewell
e. Connectivity to road/railways: NH/SH details along with distance
f. Mode of transport: Pickup/Truck/Others
g. Market: Details of local market/other market
h. Employment Generation:14 nos.
i. Marketing:
j. Waste disposal: ETP/STP
3. Organizational and Promoters Details
Organizational details
The M/s XYZ is a proprietorship/partnership/private company is associated with fruit trading for about 10
years. The unit was incorporated on.......................as private limited company under Company’s Act. The
authorized capital of the company is Rs. ….. lakh and the paid-up capital is Rs. ….. as on................The
details of the unit as per MCA website (only for private/public ltd. companies) are given below:
Company Master Data

CIN
Company / LLP Name
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Company Master Data
ROC Code
Registration Number
Company Category
Company Sub-Category
Class of Company
Authorized Capital(Rs)
Paid up Capital(Rs)
Number of Members(Applicable in case of
company without Share Capital)
Date of Incorporation
Registered Address
Email Id
Whether Listed or not
Date of last AGM
Date of Balance Sheet
Company Status(for e-filing)
Directors/Signatory Details
DIN/PAN Name Begin date End date
Promoters’ Background
The unit is a proprietorship/partnership/private limited company/ firm and the

proprietor/partners/promoters of the firm has experience in trading of fruits and vegetables and is
associated processors. He/They has/have identified fruit juice industry as a profitable business seeing its
ever-increasing demand in the local market as well market in the neighboring districts and States. Brief
profile of the proprietor/partners/promoters is given below:
Brief profile of promoters is given below:
a) Mr. ABC
b) Mrs. XYZ
c) Mr. DEF
Networth: The details of the networth of the unit is given below:
Particulars Rs. In lakh

Movable assets A
B
C
Subtotal (A)
Immovable assets A
B
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C
Subtotal (B)
Total
The total net-worth is more than the proposed grant of the unit.
4. Project Description & Flow Sheet:

The unit has proposed to set up a 500 Ltr/hr. RTS Juice Processing unit at XYZ location. The main
product is RTS Fruit based beverages.
The ready-to-serve beverages as per FSSA specifications should contain at least 10 percent fruit content
and not less than 10 percent TSS besides 0.3% acid maximum as citric acid. The levels of permitted
preservatives include 70 ppm (maximum) for sulphur dioxide and 120 ppm (maximum) for benzoic acid.
The total plate count and yeast and mold counts should not exceed, to 50.0 cfu/ml and 2.0 cfu/ml,
respectively. The Coliform counts should be nil in 100 ml beverage samples.
Since these beverages are consumed as such without dilution, hence are termed as Ready-to-serve
beverage. Most packaged fruit beverages belong to this category. Wide range of fruits including mango,
citrus fruits, berries, litchi, guava, pineapple, grapes etc. are preferred for RTS beverages. Required
amount of sugar, acid, stabilizer, colouring and flavouring ingredients are added in juice or pulp along with
water and the mixture is blending properly, filtered if desired. The RTS mix is pasteurized (80-90 degree
C) in bottle (20-30 min), continuous juice pasteurizer (few seconds to one minute) and cooled
immediately. Nowadays, UHT processing of RTS beverages is quite popular because of longer shelf-life
and less loss of nutrients during processing.
The amount of fruit juice or pulp may vary according to fruit and cost effectiveness. The presence of
oxygen in headspace often leads to oxidation resulting in off-flavour and loss of nutritive value, hence
antioxidants such as ascorbic acid is often added in RTS beverages. Besides it, colour and flavour
ingredients which are stable to heat, and oxygen are preferred.
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Manufacturing Process
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5. Procurement strategy of raw material & other inputs
Bihar produces various kinds of fruits and vegetables in large quantity. Among fruits, the state is the
largest producer of litchi, third largest of pineapple and fourth largest of mango in India. The major fruit
producing districts in the state overlap with major vegetable producing ones. While Muzaffarpur and
Vaishali districts lead in litchi and banana, the districts of Darbhanga, Vaishali, East Champaran and West
Champaran are ahead in mango production. Similarly, Rohtas and Bhojpur lead in guava production.
Normally prices of fruits and vegetables at the village level are much lower compared to that in the main
wholesale market. This situation leads to farmers getting much less return on their produce.
Mango is an important fruit besides mango, other important crops include litchi, guava and banana, which
are grown in abundance in the district.
Proposed district produces Guava, Mango, Litchi, Banana, Lemon and many other fruits like Karaunda,
Lotus Stem etc. District also produces vegetables in huge quantity, specially, Kole crops, Tomato, Carrot,
Chilli, which will be required for the unit in manufacturing of fruit-based products. During the season Fruit
required by the unit will be procured directly from the farmers. Many small adhats (auction centers)
sprang in the villages that collect the vegetables from the farmers and is further sold/ dispatched to other
major market/ customers in the state and other state. In addition to this unit would also propose to sign
contracts with the local farmers to ensure timely supply of the fruits.
Backward Linkages:
The promoter has well established backward linkages for its proposed units and it is expected that the
raw material can be procured from the local area. Raw materials are mainly Mango/Pineapple/Litchi,
sugar, preservatives etc.
Forward Linkages
Food product such as Mango, pineapple, litchi juices has a great demand in the Town as well as in the
rural area at present there are only few units who are manufacturing RTS beverages and other unites are
very small capacity and unable to fulfill the Market demand.
6. Marketing strategy
The rising number of health-conscious consumers is giving a boost to RTS juices; it has been observed
that consumers are shifting to RTS as they consider the same as a healthier breakfast/snack option.
Mango drinks are popularly used in most urban households.
Today markets are flooded with a large variety of juices e.g., mango, apple, guava, litchi, grapes,
pineapple etc. The main reason for increased consumption is rising level of health consciousness among
consumers and parents. It is believed that these drinks provide superior nutrition because of their fortified
status. Factors like preferred choice of children, easy availability, convenience, naturalness and
marketing strategies have given RTS drink industry a booming growth.
With changing lifestyles and increase in disposable incomes, the demand for easy-to- prepare drink is
also increasing. Besides consumption in the households, it is served in hotels, restaurants, clubs, airlines
and railways etc.
Quality should be emphasized at each step right from the beginning to the marketing of the Product. Over
the years, an image of high-quality products should be cultivated.
The effectiveness of distribution coverage and practice is of paramount importance in achieving the
desired RTS juice sales. Understanding of the distribution channels is crucial for the manufacturer to plan
and implement an effective distribution strategy. Distribution network should be given extra emphasis.
Market share could be gained by enhancing retailer, and distributor margins. Normally distribution and
retailer margins in RTS juice business are from 15 to 20%.
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Promoters would appoint distributors in targeted towns of Bihar and surrounding states like West Bengal,
Jharkhand, Uttar Pradesh. Contacts with retailers of similar kinds will be made and products would be
sold in the market with help of them. The product made in this unit will be in the line with top range of
products with better quality at the same time cost effective. Company would be sharing more profits with
the distributors and retailers.
Company will also explore possibility of marketing their produce to retails shops like Big Bazar, Reliance
Trends, Malls etc. It will also try to partnership with local and other hotels and restaurants with good offers
to attract demand of its product. It is assumed that due high quality, cost effectiveness and aesthetic
packaging, sale of products may not face much problems.
7. List of Statutory Clearances Required

A tentative list of clearances that unit would require to take:
Approval and clearances Department/ Offices to be

S. No. Status
required consented
State Investment Promotion Department of Industries
1
Board, Stage – I clearance
Consent to Establish Bihar State Pollution Control
2
Board
3 GST registration Commercial Taxes
4 Change in land use Land Revenue Dept
Electricity Connection North/South Bihar Power
5
Distribution Company Ltd.
6 Registration under Factories Act Office of Inspector of Factories
8. Land Details
Land Details
In order to set up a modern biscuit manufacturing unit of the proposed capacity, a land size of approx. 18
to 20 Decimal would be ideal however this may vary with increase in capacity.
The land proposed for the unit Details of the proposed land is given below:
Sale deed dated 18.10.2016 in the name of M/s XYZ with sale value Rs. 0.00/-
Khata no. Plot no. Area Boundary
Total 19 decimals
The total land area is …… decimal and is in the name of the of the proprietor/firm/company. The
proposed land of the unit is an industrial land as per CLU dated …… Character of the land. The cost of
the land is Rs. ……. lakh/ the proposed land is a leased land for a period of.................years.
(In case of leased land the minimum lease duration should be 30 years)
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9. Project Cost
The proposed project cost of the unit is Rs. 240.00 lakh, the details of the project cost is given
below:
Project Cost
Amount % of total
S. No Particulars
(Rs. Lakh) project cost
1 Land - 0.00%
2 Land and Site Development Cost 10.00 4.17%
3 Plant Area & Building Development Cost 51.00 21.25%
4 Plant and Machinery 134.00 55.83%
MFA (Including DG set, Transformer,
5 25.00 10.42%
Furniture etc.)
6 Preliminary and Pre-operative Expenses 5.00 2.08%
7 Contingency 5.00 2.08%
8 Margin Money for Working Capital 10.00 4.17%
Total 240.00 100.00%
a. Investment in land and land development

 Investment in land: Proposed land of the project is taken on long term lease and
hence no cost has been considered towards cost of the land in the project.
 Investment in land development work: The total investment in land development work
is Rs. 10.00 lakh which is 4.17% of the total project cost. However as per scheme
guidelines Rs. 6.00 lakh @2.5% of the project costis lowest and hence is
considered for grant-in-aid calculation.
b. Investment in civil work

The Master Plan has been prepared in accordance with the requirement of the project. Based on
the requirement of machines and equipment, the facilities have been planned and user amenities
integrated. The planning of the building structures and infrastructure facilities has been done
keeping in view the entire functional requirements and location of the various units in the site has
been fixed to facilitate smooth process flow. Proposed master plan meets all plot development
and planning norms are as per Standards of the State Govt. Built-up area and open space has
been considered as per local bye-laws applicable for industrial buildings. ( Factory building either be
RCC or PEB structure so the layout plan and cost may vary project to project same will be captured in an
applicant’s DPR).
Promoters propose to construct factory shed & building, office, water storage tank, guard room
etc. The proposed estimate of shed & building is Rs. 51.00 lakh, and the details are given below:
Proposed Civil Work details:
Proposed civil work

Area Amount
S. No Component
(sq. ft.) (Rs. Lakh)
1 Factory shed 4000 26.00
2 Office 500 8.00
3 Water storage tank 600 7.00
4 Guard Room 100 2.00
5 Staff Quarter 500 8.00
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Total 51.00
Plant & machinery

The company proposes to install latest and standard machines from the reputed
Indian/International manufacturers. The total proposed investment in plant & machinery is Rs.
134.00 lakh including Effluent Treatment Plant. Details of the proposed machinery is given below:
Plant & machinery*
Amount
S. No. Name ofthe machinery
(Rs. Lakh)
1 RTS juice processing plant 30.00

2 Pet Blowing machine, compressor and mould 20.00
3 Filling machine 18.50
4 Batch coding machine 2.00
5 Group shrink packing 5.00
6 Electric panel, electric work
7 Boiler, steam piping to plant, chimney
8 Cooling tower, piping 22.00
9 Online chiller, piping
10 RO, lab and piping 26.50
11 ETP 10.00
Total 134.00
As per scheme guidelines Rs. 134.00 lakh has been considered towards grant-in-aid calculation.
Misc. Fixed Assets
In order to ensure smooth operation of the unit, it would also require certain miscellaneous fixed
assets apart from above listed plant &machinery. The miscellaneous fixed assets would include
electrical installation, power back-up, furniture, office equipment &vehicle for transportation, etc.
Cost of these assets is estimated at Rs. 25.00 lakh.
Preliminary & pre-operative expenses
Pre-operative expenses have been considered considering the tentative expenditure to be

incurred related to loan appraisal fees, consultancy fees, administrative exp and interest on term
loan during construction period. All these expenses have been estimated at Rs. 5.00lakh.
Contingency
Amount proposed to be invested towards contingency is Rs. 5.00 lakh
Margin money for the working capital
We have worked out the margin money for working capital requirement as per project need and
its smooth operation, the proposed amount of margin money is Rs. 10.00 lakh @25% of the
working capital requirement. Detail is given in the financial section of the report.
Electricity
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The unit will require power load of ……… KVA from North/South Bihar Power Distribution
Company Ltd. for this project. Estimate of power requirement is enclosed with the financial part of
this report.
Water
The estimated water consumption is approx. 20 KL per day and two deep bore wells would be
required to meet water requirement of the unit.
Manpower
An estimate of manpower requirement has been prepared based on the equipment and
operations involved. An estimate of manpower cost is given below:
Total Salary Total Salary

No of Monthly
S. No Particulars Per Month Per Annum
Employee Salary
(Rs.) (Rs.)
A Technical Staff
1 Manager 1 15,000 15,000 180,000
2 Storekeeper 2 10,000 20,000 240,000
3 Accountant 1 10,000 10,000 120,000
4 Operator, fitter, electrician 4 12,000 48,000 576,000
5 Helper/ Skilled worker 4 8,000 32,000 384,000
B Unskilled Staff
6 Peon/Security Guard 2 8,000 16,000 192,000

- - -
Total 14 1,692,000
Add PF, ESI & Other benefits etc @20% 338,400
Total Direct Wages 2,030,400
Total Direct Wages (Rs. In lakh) 1.41 20.30
10. Means of Finance
Sl No Particulars Total Total

1 Capital 60.00 25%
2 Long Term Debt 180.00 75%
240.00 100%
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11. Techno-commercial viability of the project
a. Technical viability: Project has proposed to install modern and standard machineries from reputed
suppliers for production process. It has proposed proper marketing strategy for the sale of the
goods in local as well adjoining districts. The project has already been approved for available
term loan from bank and promoters of the unit are aware about the business and will also deploy
trained and technical staff for running the unit.
b. Commercial viability: The financial projections of the unit are positive with standard financial
ratios, the list of important financial ratios are given below:
Gross Profit 24.71 24.09 23.82 23.60 23.32

Ratio
Net Profit Ratio 7.54 8.75 9.70 10.45 11.01
Current Ratio 2.14 3.03 3.90 4.79 5.69
DSCR 2.85 2.98 3.08 3.18 3.27
BEP 0.59 0.49 0.41 0.35 0.30
IRR 15%
12. Financial Analysis
Assumption
Capacity assessment
Production per day from plant 500 ltr/hour in two shifts i.e. 16 hours
per day
No. of working days 250
Total annual production at 100% 2000 MT
capacity
Total annual install capacity 2000 MT
Capacity assumptions
Product mix 100% 2000 MT
RTS Juice 80% 1800 MT
Loss 20% 200 MT
Total annual install capacity - 2000 MT
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Working Capital Requirements
Sl Particular Stocking Ist Yr 2Nd Yr 3rd Yr 4th Yr 5th Yr
No Period
in
Month
1 Raw Materials 1.00 25.95 28.11 30.28 32.44 34.60
2 Consumable Stores & Packing Material 1.25 0.00 0.00 0.01 0.01 0.01
3 Finished Goods 0.50 18.06 20.58 21.84 23.52 25.20
4 Receivables 0.25 9.07 10.19 11.00 11.78 12.57
5 Expenses for One Month 0.50 1.89 2.08 2.29 2.52 2.77
Total Current Assets 54.98 60.97 65.41 70.26 75.15
6 Less: Sundry Creditors 1.00 28.11 28.29 30.46 32.62 34.78
7 Working Capital Gap 26.87 32.67 34.95 37.64 40.36
8 Total Required Margin 6.72 8.17 8.74 9.41 10.09
9 Permissible Bank Finance 20.15 24.50 26.22 28.23 30.27
10 Actual Bank Borrowing 19.00 19.00 19.00 19.00 19.00
on Stock 11.40 11.40 11.40 11.40 11.40
on Book Debts 7.60 7.60 7.60 7.60 7.60
11 Actual Margin 7.87 13.67 15.95 18.64 21.36
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Revenue Projections
Sl No Particulars Ist Yr 2Nd Yr 3rd Yr 4th Yr 5th Yr
1 Installed Capacity (In MT) 2000 2000 2000 2000 2000
2 Product Mix
100% 100% 100% 100% 100%
Juice 90% 90% 90% 90% 90%
Loss 10% 10% 10% 10% 10%
3 Product wise capacity 2,000 2,000 2,000 2,000 2,000

Juice--90% 1,800 1,800 1,800 1,800 1,800
Loss-10% 200 200 200 200 200
4 Capacity Utilisation 60% 65% 70% 75% 80%
Production (In MT)
Juice
Actual Production 1,080.00 1,170.00 1,260.00 1,350.00 1,440.00
Add: Opening Stock of FG (In MT) - 43.00 49.00 52.00 56.00
Less: Closing Stock of FG (In MT) 43.00 49.00 52.00 56.00 60.00
Value of Opening Stock (Rs. In lacs) - 18.06 20.58 21.84 23.52
Value of Closing Stock (Rs. In lacs) 18.06 20.58 21.84 23.52 25.20
Quantity to be sold (In MT) 1,037.00 1,164.00 1,257.00 1,346.00 1,436.00
Selling Rate per MT 42,000.00 42,000.00 42,000.00 42,000.00 42,000.00
Sales Value (Rs. In lacs) (A) 435.54 488.88 527.94 565.32 603.12
5 Total Sales Value (Rs. In lacs) (A) 435.54 488.88 527.94 565.32 603.12
6 Closing Stock of Finished Goods (Rs. In lacs) 18.06 20.58 21.84 23.52 25.20
23 | P a g e
Fund Flow Statement
SL. PARTICULAR Ist Yr 2Nd Yr 3rd Yr 4th Yr 5th Yr
NO.
CASH INFLOW
1 Profit before Tax 49.75 64.83 77.55 89.48 100.58
2 Add:- Depereciation 29.05 25.12 21.74 18.83 16.32
3 Priliminery Exps. W.O. - - - - -
4 Cash Accurals (1+2+3) 78.81 89.96 99.29 108.31 116.90
5 Receipt of capital subsidy from Bihar Govt.
6 Increase/(Decrease) in C.L. 28.11 0.18 2.16 2.16 2.16
7 Contribution by Shareholder/Promoter 60.00 - - - -
8 Increase in Term Loan from Bank 180.00
9 Increase in Un. Sec. Loan
10 Increase in Working Capital 19.00 - - - -
A.Total (Rs.)(4 to 14) 365.92 90.14 101.45 110.47 119.06
CASH OUTFLOW
1 Preliminery & Preoperative Expenses -
24 | P a g e
2 Increase in Current Asset 88.09 30.79 34.24 34.62 64.63
3 Increase in Cap. Expenditure 222.35
4 Decrease in Term Loan 25.71 25.71 25.71 25.71 25.71
5 Investment - - - - -
6 Dividend Paid - - - - -
7 Income Tax Paid 16.91 22.04 26.36 30.41 34.19
B.Total (Rs.) (1 to 9) 353.06 78.55 86.31 90.75 124.53
C.Surplus/Deficit from Project (A-B) 12.86 11.59 15.14 19.72 (5.47)
D. Opening Balance of Cash & Cash Equivalent - 12.86 24.45 39.60 59.32
E. Closing Balance of Cash & Cash Equivalent(C+D) 12.86 24.45 39.60 59.32 53.85
Balance Sheet Cash & Bank 12.86 24.45 39.60 59.32 53.85
25 | P a g e
Particulars Ist Yr 2Nd Yr 3rd Yr 4th Yr 5th Yr
Liabilities
Capital 60.00 60.00 60.00 60.00 60.00
Reserve & Surplus 32.84 75.64 126.83 185.89 252.29
Term Loan 154.29 128.57 102.86 77.14 51.43
Bank Borrowing for Working Capital 19.00 19.00 19.00 19.00 19.00
Sundry Creditors 28.11 28.29 30.46 32.62 34.78
Provision for Taxation 16.91 22.04 26.36 30.41 34.19
Total 311.15 333.54 365.50 405.07 451.69
Assets
Gross Block 222.35 222.35 222.35 222.35 222.35
Less- Accumulated Deprection 29.05 54.18 75.92 94.75 111.07
Net Block 193.29 168.17 146.43 127.60 111.28
Current Assets
Inventory
Raw Materials 25.95 28.11 30.28 32.44 34.60
Consumables Stores & Packing Materials 0.00 0.00 0.01 0.01 0.01
Closing Stock 18.06 20.58 21.84 23.52 25.20
Receivables 9.07 10.19 11.00 11.78 12.57
26 | P a g e
Other Current Assets
Taxation Advance 16.91 22.04 26.36 30.41 34.19
Other Current Assets 35.00 60.00 90.00 120.00 180.00
Cash & Bank Balances 12.86 24.45 39.60 59.32 53.85
Miscellaneous Expenditure (not w/o) - - - - -
Total 311.15 333.54 365.51 405.07 451.69
Particulars Ist Yr 2Nd Yr 3rd Yr 4th Yr 5th Yr
Sales 435.54 488.88 527.94 565.32 603.12
Less- Duty & Taxes - - - - -
Net Sales 435.54 488.88 527.94 565.32 603.12
Other Income - - - - -
Total 435.54 488.88 527.94 565.32 603.12
Variable Cost
Raw Materials Consumed 311.42 337.37 363.33 389.28 415.23
Consumables & Packing Materials 0.04 0.04 0.05 0.06 0.07
Wages & Salary 20.30 20.30 22.33 24.57 27.02
Power 10.08 11.14 12.24 13.37 14.55
Repair & Maintenance 2.15 2.37 2.60 2.86 3.15
Other Manufacturing Expenses 2.00 2.40 2.88 3.46 4.15
27 | P a g e
Cost of Production 346.00 373.62 403.43 433.59 464.17
Add: Opening Stock of Finished Goods - 18.06 20.58 21.84 23.52
Less: Closing Stock of Finished Goods 18.06 20.58 21.84 23.52 25.20
Cost of Sales 327.94 371.10 402.17 431.91 462.49
Gross Profit :- 107.60 117.78 125.77 133.41 140.63
Selling & Administrative Expenses 10.89 12.22 13.20 14.13 15.08
- Other Selling & Adm. Exps. 10.89 12.22 13.20 14.13 15.08
Profit before Interest & Depreciation 96.72 105.55 112.57 119.27 125.55
Depreciation 29.05 25.12 21.74 18.83 16.32
Profit before Interest & Taxation 67.66 80.43 90.83 100.44 109.24
Interest on
Term Loan 16.20 13.89 11.57 9.26 6.94
Working Capital 1.71 1.71 1.71 1.71 1.71
Total Interest 17.91 15.60 13.28 10.97 8.65
Profit before Taxation 49.75 64.83 77.55 89.48 100.58
Current Tax 16.91 22.04 26.36 30.41 34.19
Deffered Tax - - - - -
Profit after Tax 32.84 42.80 51.19 59.06 66.39
Add: Profit B/f from Previous Year - 32.84 75.64 126.83 185.89
Balances transfer to Reserve & Surplus 32.84 75.64 126.83 185.89 252.29
28 | P a g e
SI Particular Ist Yr 2Nd Yr 3rd Yr 4th Yr 5th Yr
No.
1 Profit Before Taxation 49.75 64.83 77.55 89.48 100.58
2 Add: Depreciation 29.05 25.12 21.74 18.83 16.32
3 Less: Depreciation 29.05 25.12 21.74 18.83 16.32
4 Taxable Income 49.75 64.83 77.55 89.48 100.58
5 Tax as per normal provision @26% 16.91 22.04 26.36 30.41 34.19
6 Book Profit u/s 115 JB 49.75 64.83 77.55 89.48 100.58
7 Tax on above @20.96% including surcharge 10.43 13.59 16.25 18.75 21.08
8 Income Tax Payable (5 or 7 whichever is higher) 16.91 22.04 26.36 30.41 34.19
29 | P a g e
Financial Ratios
Gross Profit 24.71 24.09 23.82 23.60 23.32

Ratio
Net Profit Ratio 7.54 8.75 9.70 10.45 11.01
Current Ratio 2.14 3.03 3.90 4.79 5.69
DSCR 2.85 2.98 3.08 3.18 3.27
BEP 0.59 0.49 0.41 0.35 0.30
IRR 15%
DSCR
SI Particular Total Ist Yr 2Nd Yr 3rd Yr 4th Yr 5th Yr
No.
1 Profit after Taxation 252.29 32.84 42.80 51.19 59.06 66.39
2 Interest on Term Loan 57.86 16.20 13.89 11.57 9.26 6.94
3 Deffered tax Liability - - - - - -
4 Depreciation 111.07 29.05 25.12 21.74 18.83 16.32
5 Preliminary Expenses w/o - - - - - -
Total 421.21 78.09 81.81 84.50 87.15 89.66
1 Repayment of Term Loan 128.57 25.71 25.71 25.71 25.71 25.71
2 Interest on Term Loan 8.55 1.71 1.71 1.71 1.71 1.71
Total 137.12 27.42 27.42 27.42 27.42 27.42
DSCR (Gross) 3.07 2.85 2.98 3.08 3.18 3.27
BEP
SI NO Particulars Ist Yr 2nd Yr 3rd Yr 4th Yr 5th Yr
A Net Sales 435.54 488.88 527.94 565.32 603.12
30 | P a g e
Add: Closing Stock of F.G 18.06 20.58 21.84 23.52 25.20
Less: Opening Stock of F.G - 18.06 20.58 21.84 23.52
Total 453.60 491.40 529.20 567.00 604.80
B Variable Cost
Raw Materials Consumed 311.42 337.37 363.33 389.28 415.23
Consumables Packing Materials 0.04 0.04 0.05 0.06 0.07
Wages & Salary 20.30 20.30 22.33 24.57 27.02
Power & Fuel 10.08 11.14 12.24 13.37 14.55
Other Manufacturing Expences 2.00 2.40 2.88 3.46 4.15
Repair & Maintenance 2.15 2.37 2.60 2.86 3.15
Other Selling & Administrative Exps 2.18 2.44 2.64 2.83 3.02
Interest on working Capital 1.71 1.71 1.71 1.71 1.71
Total 349.88 377.78 407.78 438.13 468.89
C Contribution 103.72 113.62 121.42 128.87 135.91
P/V Ratio 22.87 23.12 22.94 22.73 22.47
D Fixed & Semi-Varable Exps.
Salaries 10.15 10.15 10.15 10.15 10.15
Other Selling & Adm.Exps. (50%) 5.44 6.11 6.60 7.07 7.54
Interest on Term Loan & Other 16.20 13.89 11.57 9.26 6.94
Depreciation 29.05 25.12 21.74 18.83 16.32
60.85 55.27 50.07 45.30 40.95
BREAK EVEN POINT 0.59 0.49 0.41 0.35 0.30
31 | P a g e
13. Project impact
As discussed earlier, the project will have various positive impacts such as:
Infrastructure for value addition: This unit would aim to integrate and streamline existing value chains in the
region by creating centralized infrastructure for value addition and preservation. The unit will thus provide
benefits on cost, quality and convenience for sustainable growth in the market driven economy. The unit has
been envisaged in a way that it would ensure better returns to all players in each level of value chains ranging
from procurement, storage, processing, packaging to distribution of food commodities through vertical
integration of functions and horizontal linkages of destinations.
Reduction of Wastages: The infrastructure created at the unit along with the integration of backward and
forward linkages would lead to more efficient supply chains and reduction of wastages. This would provide
higher value realization to all players in the supply chain including the farmers.
Creation of employment: The project shall generate employments. It is estimated that the it would generate
direct employment of about 14 workers and indirect employment of another 30 workers. Most of the manpower
requirement will be met from the local area.
Return to farmers: The unit will be benefiting farmers in the region by increasing the returns for farmers by
decreasing wastages and increasing demand of the agricultural produce
32 | P a g e
GENERAL INFORMATION
Based upon the information collected through the primary data following tables and charts are drawn.
The following table on general information provides the demographics of the respondents participated
in the survey.
Table 4.1 General Information
Total eligible respondents 203
Gender Number of Percentage

respondents
Male 116 57.1
Female 87 42.9
Age Number of Percentage
respondents
Below 18 3 1.5
18 - 30 years 181 89.2
31- 45 years 17 8.4
46 and above 2 1.2
Household Income Number of Percentage
respondents
0-3 lakhs per 39 19.2
annum 3-7 lakhs 78 38.4
per annum 7-10 34 16.7
lakhs per annum 52 25.6
Above 10 lakhs per annum
33 | P a g e
ANALYSIS AND INTERPRETATION OF PRIMARY DATA
Table 4.2 - Respondent’s Age

Respondent’s Age No. of Percenta
Response ge
Below 18 3 1.5
18 - 30 years 181 89.

2
31- 45 years 17 8.4
46 and above 2 1.0
Total 203 100
1% 2%
8%
Below 18
18 - 30 years
31- 45 years
46 and above
Figure 4.1 Respondent’s Age
Analysis: Out of 203 respondents surveyed, 181 falls in the age group of 18-30 years which is
around 89% of total respondents. Next in the list is age group of 31-45 years with 17 respondents.
Only 3 respondents were below age of 18 years and 2 above the age of 45 years.
34 | P a g e
Table 4.3 - Income Distribution of households
Household Income No. of Percenta

response ge
0-3 lakhs per annum 39 19.2
Above 10 lakhs per annum 52 25.6
Total 203 100

*
*Percentage value rounded off to nearest decimal point
78
80
70
60 52
No. of response
50
39
40 34
30
20
10
0
0-3 lakhs per annum3-7 lakhs per annum
7-10 lakhs per annum
Above 10 lakhs per annum
Figure 4.5 Income Distribution of households
Analysis: Income status of respondents seems well distributed with 39 respondents’ household
income below 3 lakhs. 78 respondent’s having household income between 3-7 lakhs. Respondents
with household income between 7-10 lakhs are 34 in total and 52 are with income above 10 lakhs.
35 | P a g e
Table 4.4 - Importance of fruit juices/ fruit drinks in daily needs
Importance of fruit juices/ No. of Percenta
responses ge
fruit drinks in daily needs
Very Important 44 21.67
Important 71 34.9
8
Neutral 60 29.5
6
Not Important 22 10.8
4
Not Important at all 6 2.96
Total 203 100*
*Percentage value rounded off to nearest decimal point
80 71
70
60 60
50
40
No. of response
30 44
20
10
22
0
Very importantImportant Neutral Not ImportantNot Important
at all
Figure 4.3 Importance of fruit juices/ fruit drinks in daily needs

Analysis: When asked about the importance of fruit-based beverages in their daily needs; 44
respondents believe that fruit juices are very important part of their daily needs. A significant number of
71 respondents find fruit juices important part of their daily needs. 60 respondents are neutral about it.
Out of 203 respondents, surveyed 22 do not find role of fruit juices in their daily needs important
whereas for 6 respondents it is not important at all.
36 | P a g e
Table 4.5- Benefits associated with fruit juices/ fruit drinks
Benefits associated with No. of Percenta
responses ge
fruit juices/ fruit drinks
As nutritious as fruit 88 43.3
Health benefits 142 70.0
Substitute for carbonated beverages 95 46.8
Low sugar content 36 17.7
Others 3 1.5
Total 364^ 179*
*Percentage value rounded off to nearest decimal point ^This parameter includes multiple
answers in survey response
160 142
140
120 95
88
No. of response
100
80
36
60
40 3
20
As nutritious Health Substitute for Low sugar others
0 as fruit benefits carbonated content
beverages
Figure
4.4 Benefits associated with fruit juices/ fruit drinks
Analysis: The above graph shows the various reasons or benefits that respondents associate with
fruit-based beverages. A majority of the respondents, i.e. 70 % believe it is the health benefit that
draws them to buy the fruit juices. 46% of the respondents consider fruit-based beverages as a good
substitute for carbonated drinks. 43% of the respondents find fruit-based beverages as nutrients as
fruits.
37 | P a g e
Table 4.6 - Factors influencing buying decision
Factor influencing buying decision No. of Percenta
responses ge
Television / Radio 126 62.1
Newspaper / Magazine 65 32.0
Family/Friends 95 46.8
Word of Mouth 98 48.3
Internet 33 16.3
Others 8 3.9
Total 425^ 209*
140 126
120
100
95 98
No. of response
80 65
60
40
20 33
0
8
Figure 4.5 Factors influencing buying decision

Analysis: The above graph shows the various factors that influence the customer buying behaviour.
Media seems to play a great role in influencing the purchase decision of respondents with 126
respondents selecting television/radio and 65 respondents opting for Newspapers/magazines.
However, Family/friends and word of mouth are also crucial factors with 95 and 98 responses
respectively.
38 | P a g e
Table 4.7 - Level of involvement in decision making regarding day to day household
purchases
Level of involvement in decision making No. of Percenta
regarding ge
respons
day to day household purchases es
I make the decision alone 88 43.3
I generally consult others in making the 81 39.9

decision
I just accompany others to the shop and 21 10.3
play no
role in decision making
Do not know 13 6.4
Total 203 100
88
90 81
80
70
No. of response
60
50
40
30 21 13
20
10
Make
0 decisionConsultAccompanyDo not know aloneothersothers to the
shop and play no role
Figure 4.6 Level of involvement in decision making regarding day to day household
purchases Analysis: Based on the responses garnered from the survey, it is found
that 43.3% of the respondents make their purchase decision alone and around 40 %
of the respondents consult others for making decisions related to household
purchase. 10.3% don’t play any role in decision making and 6.4% respondents were
not sure about their role.
39 | P a g e
Table 4.8 - Type of outlet preferred for regular purchase
Type of outlet preferred for regular No. of Percenta
purchase responses ge
Traditional Grocery / Kirana Stores 65 32.
0
Modern Retail Outlets or Big Retail Stores 133 65.5
Others 5 2.5
Total 203 100
2%
32%
Traditional Grocery / Kirana Stores
Modern Retail Outlets or Big Retail Stores
Others
Figure 4.7 Type of outlet preferred for regular purchase
Analysis: Majority of the respondents surveyed prefer the modern retail outlets or big retail store with
133 respondents opting for modern retail outlets as compared to 65 respondents selecting traditional
kirana stores. 5 respondents prefer both channels equally.
40 | P a g e
Table 4.9 Frequency of purchase of fruit drinks from preferred outlet
Frequency of purchase of fruit drinks from No. of Percenta
such ge
respons
outlets es
Once a week or more often 69 34.
0
Once every 2 or 3 weeks 70 34.5
Once a month 41 20.

2
Once every 2 or 3 months 8 3.9
Very rarely 15 7.4
Total 203 100
69 70
70
60
50 41
No. of response
40
30
15
20
8
10
0
Once a weekOnce every 2 Once a month Once every 2Very rarely or more oftenor 3 weeksor 3 months
Figure 4.8 Frequency of purchase of fruit drinks from preferred outlet

Analysis: A large portion of the respondents purchase fruit-based beverages either most often (at
least once a week) or once in every 2-3 weeks. This shows that purchase of fruit based beverages is
quite high on their list of priority purchases and is consumed very regularly. Only 7.4% respondent
purchase fruit based beverages very rarely.
41 | P a g e
Table 4.13 - Factor for choosing a particular packaged fruit juice
Factor for choosing the fruit juice No. of Percenta
responses ge
Pricing 26 12.8
Ambience 19 9.4
Location/nearness 57 28.1
Service 35 17.2
Display /merchandising 15 7.4
Reputation 37 18.2
Occasion 12 5.9
Others 2 1.0
Total 203 100
1% Pricing Ambience
Location/nearness Service
Display /merchandising Reputation
Occassion
others
8%
Figure 4.9 Factor for choosing a particular packaged fruit juice

Analysis: The prime factors in selection of a particular packaged fruit juice, observed from survey
response are Location/nearness, reputation and service with 28.1%, 18.2% and 17.2% respectively,
followed by pricing with 13%. Occasion, display and ambience are least important factors that
influence the channel selection.
42 | P a g e
Table 4.11 - Importance of Brand of fruit juice
Importance of Brand of fruit juice No. of Percenta
responses ge
Yes 155 76.4
No 48 23.6
Total 203 100
24%
Yes
No
Figure 4.10 Importance of Brand of fruit juice
Analysis: Among all the 203 respondents surveyed, majority of the respondents (76%) felt that brand
name is important in selection of fruit juice/drinks, whereas around 24% respondents differ in their
opinion as they do not find the brand important when it comes to choose fruit- based beverages.
43 | P a g e
Table 4.12 - Most preferred brand of juice
Most preferred brand of juice No. of Percenta
responses ge
Appy 86 42.4
Ceres 18 8.9
Frooti 80 39.4
Godrej XS 7 3.4
Jumpin 29 14.3
Maaza 109 53.7
Minute Maid 60 29.6
Onjus 7 3.4
Real 91 44.8
Real active (100% juice) 71 35.0
Real Burst 6 3.0
Safal 22 10.8
Saint 14 6.9
Slice 63 31.0
Tropicana 99 48.8
Tropicana (100%) 85 41.9
Tropicana Twister 15 7.4
Others 13 6.4
Total 875^ 431*
44 | P a g e
120
109
99
100
91
86 85
80
80
71
No. of response
63
60
60
40
29
22
18
20 14 15
13
7 7 6
Appy Ceres Frooti Godrej XS Jumpin Maaza
Figure 4.11 Most preferred brand of juice
Analysis: The data is presented in order to find the most preferred brands of fruit-based beverages by
a typical household in Bangalore city. When asked to choose among the prime fruit based beverage
products, Maaza with 53.7% emerged as the most popular preferred drink followed by Tropicana with
48.8% and Real with 44.8% respondent’s vote.
It is significant to note that the combined response for brand Tropicana (Tropicana, Tropicana 100%,
Tropicana Twister) and brand Real (Real, Real active, Real burst) is 199 and 168 votes respectively.
45 | P a g e
Table 4.13 - Most preferred purchase quantity
Most Preferred Quantity No. of Percenta
responses ge
200/300 ml 45 22.2
500/600 ml 68 33.5
1 liter 90 44.3
Total 203 100
22%
200/300 ml
500/600 ml 1 litre
Figure 4.12 Most preferred purchase quantity
Analysis: A large number of the respondents purchase fruit-based beverage in the quantity of 1 litre
family packs. Of all respondent surveyed, around 44% opted for 1 litre of preferred quantity
purchased. 500/600 ml is the choice of around 34% respondents whereas 22% people opted for small
quantity packs of 200/300 ml.
46 | P a g e
Table 4.14 – Influence on Consumption due to social occasions / entertainment
Influence on Consumption due to social No. of Percenta
occasions / responses ge
entertainment
Strongly agree 72 35.5
Somewhat agree 82 40.

4
Neither agree nor disagree 29 14.3
Somewhat disagree 13 6.4
Strongly disagree 7 3.4
Total 203 100
90 82
80 72
70
60
No. of response
50
40
30 29
20
10 13
0 7
Strongly agreeSomewhatNeither agreeSomewhatStrongly agreenor disagreedisagreedisagree
Figure 4.13 Influence on Consumption due to social occasions / entertainment

Analysis: From the above response by respondents about the influence of social occasion and
entertainment on consumption of fruit-based beverage, it is quite clear that people highly prefer fruit-
based beverages on such occasion and while celebrating. Around 76 % people agree to this, whereas
around 10% people disagree to this. 14% people are neutral about influence of social occasions on
consumption of FBB.
47 | P a g e
Table 4.15 Influence on consumption due to satisfaction of basic thirst
Influence on consumption due to No. of Percenta
satisfaction responses ge
of basic thirst
Somewhat agree 89 43.

8
Total 203 100
89
90
80
70
No. of response
60 52
50 42
40
30 19
20
10 1
0
Strongly agreeSomewhatNeither agreeSomewhat Strongly disagree
agreenor disagreedisagree
Figure 4.14 Influence on consumption due to satisfaction of basic thirst

Analysis: When asked about the influence on consumption of fruit-based beverages due to its basic
thirst filling feature, 25.6% respondents strongly agreed and around 44% people somewhat agree to
this. But around 10% people have a different opinion on this and 20.7% are uncertain about influence.
48 | P a g e
Table 4.16 - Influence on consumption due to refreshment factor

refreshment responses ge
factor
Somewhat agree 68 33.5
Total 203 100
118
120
100
80
No. of response
68
60
40
20 14
3 0
0
Strongly
SomewhatNeither
agree agreeSomewhat agreenor disagreedisagree
Strongly disagree
Figure 4.15 Influence on consumption due to refreshment factor
Analysis: The above chart depicts that there is a high influence on consumption of fruit drinks and
juices due to its refreshment factor. A majority of 58% people participated in survey strongly believe
that refreshment from fruit beverages is highly influential in consumption of FBB. 33.5% respondents
also somewhat agree on this whereas only 1.5% people disagree on this.
49 | P a g e
Table 4.17 - Influence on consumption due to enjoyment factor
enjoyment factor responses ge
0
Total 203 100
80 74
70
58
60
No. of response
50
40
40
30 24
20
7
10
0
StronglySomewhatNeither
agree agreeSomewhat agreenor disagreedisagree
Strongly disagree
Figure 4.16 Influence on consumption due to enjoyment factor

Analysis: The influence on consumption of FBB for enjoyment has a slightly mixed response in
people’s opinion as nearly 30% respondents neither agree nor disagree that their consumption of fruit
beverages gets influenced because of enjoyment obtained from its’ consumption. However, the
majority of respondents 36.5% somewhat agree to this.
50 | P a g e
Table 4.18 - Influence on consumption due to taste
Influence on consumption due to No. of Percentag
taste responses e
Total 203 100
98
100
90
80 80
70
60
50
No. of response
40
30
20
10
0 23
2 0
Figure 4.17 Influence on consumption due to taste
Analysis: When asked about the influence on consumption of fruit-based beverages due to its
appealing taste, nearly 40% of the people surveyed strongly agreed and around 48% were somewhat
agreed. Only a small number of respondents 1% showed their non-consent with this.
51 | P a g e
Table 4.19 - Influence on consumption due to feeling of a sense of well being
Influence on consumption due No. of Percentag
responses e
to feeling of a sense of well being
Total 203 100
69
70
58
60
50
No. of response
38
40
28
30
20
10
10
0
Figure 4.18 Influence on consumption due to feeling of a sense of well being

Analysis: When asked about the influence on consumption of fruit based beverages due to feeling of
a sense of well-being, 18.7% of the people surveyed strongly agreed and 34% somewhat agreed.
Around 29% respondents neither agree nor disagree to this and in total around 19% respondents
showed their non-consent with this.
52 | P a g e
Table 4.20 - Influence on consumption due to feeling of vitality and energy
Influence on consumption due No. of Percenta
responses ge
to feeling of vitality and energy
Total 203 100
80
80
71
70
60
50
No. of response
39
40
30
20
10
7 6
0
Figure 4.19 Influence on consumption due to feeling of vitality and energy

Analysis: When asked about the influence on consumption of fruit-based beverages due to vitality
and energy derived from them, 35% of the people surveyed strongly agreed and around 40% were
somewhat agreed. Around 7% of respondents do not think that their consumption of FBB is influenced
due to this feature.
53 | P a g e
Table 4.21 - Influence on consumption due to relaxation factor
relaxation responses ge
factor
Total 203^ 100

*
80 72
70
60
59
50
40
No. of response
30
20 38
10
0 30
Figure 4.20 Influence on consumption due to relaxation factor

Analysis: The opinion on influence of relaxation factor on fruit beverage consumption reflects a mix
kind of response among respondents. 18.7% of the people surveyed strongly agreed and around 29%
somewhat agreed. 35.5% people were indecisive about it with around 17% disagreeing in their
opinion on this.
54 | P a g e
Table 4.22 - Influence on consumption due to reflection of attitude
Influence on consumption due to No. of Percentage
reflection of responses
attitude
Total 203 100
80 73
70
60
No. of response
50 42
37
40 34
30
20 17
10
0

Figure 4.21 Influence on consumption due to reflection of attitude

Analysis: The opinion among the respondents on influence of relaxation factor on fruit beverage
consumption reflects a mix kind of response among respondents. Only 8.4% of the people surveyed
strongly agreed and around 21% were somewhat agreed. 36% people were indecisive about the
influence and around 18% were somewhat disagree and 17% strongly disagreed in their opinion on
this factor.
55 | P a g e
Table 4.23 - Awareness about nutrient value and difference between juices & nectars
Awareness about nutrient value and No. of Percenta
difference ge
respons
between juices & nectars es
Yes 129 63.5
No 74 36.5
Total 203 100
Figure 4.22 Awareness about nutrient value and difference between juices & nectars
Yes No
Analysis: The above response shows that the majority of the respondents are aware about the
different nutrient content offered by the various fruit-based beverage. 64% respondents confirmed
their awareness about nutrient value of various FBB whereas 36% respondents stated their
unawareness.
56 | P a g e
Table 4.24 Average monthly amount spent on packaged fruit juices
Average monthly amount spent No. of Percenta
ge
on packaged fruit juices respons
es
Less than Rs 100 31 15.3
Rs 100- 500 118 58.1
Rs 500 and above 54 26.6
Total 203 100
Figure 4.23 Average monthly amount spent on packaged fruit juices
15%
Less than Rs 100 Rs 100- 500

Rs 500 and above
Analysis: The above table and graph reflects the spending pattern of households surveyed. 31
respondents i.e. around 15% respondents spend less than Rs 100 per month on an average basis.
118 respondents (58%) reflect the majority of the responses from respondents who spend in between
a range of average Rs 100-500 per month. Also, around 27% people prefer to spend above Rs 500
on FBB monthly.
57 | P a g e
Another factors analysis
Out of the 31 respondents who spend below Rs 100 on fruit beverages, 65% are aware about the
nutrient contents of the fruit juices/drinks in comparison to the 63% response from all the respondents
for the same factor. 11 of the respondents 35% in this category are unaware of the nutrient value.
As compared to all respondents surveyed, where 76% people felt that brand is important, the
response among the 31 respondents who spend below Rs 100, brand of fruit beverage is important
for the 71% of the respondents where as 29 % feel it is not important. 6 respondents that is 19% out
of total 31who spend below Rs 100 per month on fruit beverages, prefer a quantity of 200/ 300 ml,
39% responded their preference as 500/600 ml, whereas 42% like to purchase 1 litre of fruit
beverages.
Out of the 118 respondents spend between Rs100- 500 on fruit beverages, a majority of 69
respondents (58%) are aware about the nutrient contents of the fruit juices/drinks in comparison to the
63% response from all the respondents for the same factor. 49 of the respondents 42% in this
category are unaware of the nutrient value.
As compared to all respondents surveyed, where 76% people felt that brand is important, the
response among the 90 respondents who spend between Rs 100- 500, brand of fruit beverage is
important for the 76% of the respondents where as 28 respondents (24%) feel it is not important.
29 respondents (24%) out of total 118 respondents who spend between Rs 100- 500 per month on
fruit beverages, prefer a quantity of 200/ 300 ml, 35 responded (30%) their preference as 500/600 ml,
whereas 54 respondents (46%) like to purchase 1 litre of fruit beverages. Out of the 54 respondents
who spend above Rs 500 on fruit beverages, a majority of 40 respondents (74.1%) are aware about
the nutrient contents of the fruit juices/drinks in comparison to the 64% response from all the
respondents for the same factor.
Also, among the respondents who spent Rs 500 & above, brand of fruit beverage is important for the
43 respondents (80%), whereas 20 % feel it is not important. 19% people prefer a quantity of 200/ 300
ml, 37% responded their preference as 500/600 ml, whereas 44% like to purchase 1 litre of fruit
beverages.
58 | P a g e
CONCLUSION
Following are the concluding points taken into consideration after the conduct of the research study
After conducting the observational survey & interacting with 203 respondents in the city of Bangalore,
it is observed that there is a great potential market for fruit-based beverages because of the significant
health advantages offered by them. It is been observed that households are aware of the options
available in the market and fruit-based beverage have a good market acceptance. Fruit beverages
have started becoming an important part of the daily needs of the households on social occasions and
during entertainment. With the increased importance of health and nutrition, changing life styles and
higher incomes, the Indian beverage market offers numerous opportunities for new products and
product modifications.
Fruit beverages have become an important part of Indian households, especially urban & semi urban
household as it provides vitality and energy, relation and nutrient benefits etc every passing day.
There are many factors that influence the buying behavior and attitude of a customer during his/her
buying process including demographic factors like age, marital status, monthly household income,
occupation etc. and other factors like influence of friends and family, advertisement through various
media etc.
These key factors should be seriously considered to attain an optimum market space, as in today’s
world catering to a customer’s needs is very essential to formulate a strategic marketing plan that
enhance the market share. Such novel strategies should also be backed by efficient on ground
customer support and robust R & D for product innovation.
REFERENCES
BOOKS:
 Shiffman and Kanuk (2008): Consumer Behaviour, PHI India. 9th Edition
 Kothari C R, “Research and Methodology- Methods & Techniques”, New Age
International (P) Ltd., 2008
REPORTS:
 Annual report MOFPI, 2008-09
 CII, FMCG Roadmap to 2020
 Annual report MOFPI, 2008-09

 CII, FMCG Roadmap to 2020
 Dr Rajesh Shukla (2009)”Changing Income Demographics and its Implication
for Marketers”. India Retail Report 2009.
 Fruit Juices & Health Drinks Market Report, By Bharat Book Bureau, April, 2007
 Charles Barkla, Market News Service: Fruit Juices report, Quarterly Edition,
Issue No. 1, of 31 March 2009
59 | P a g e
 Euromonitor.com report “Fruit/vegetable Juice - India”, 2009
 Field & Focus market research report, 2008-09
 Dabur India ltd, Annual report 2009-10
 PepsiCo Annual report, 2009
 Confederation of Indian Industry – Technology Export Development

Organization (CII-TEDO) report on Fruits & Vegetables Sector
60 | P a g e
WEBSITES:
 http://mofpi.nic.in/
 http://www.beveragemarketing.com/
 http://pepsicoindia.co.in/
 http://www.dabur.com
 www.foodindustryindia.com
 marketresearch.com
ARTICLES:
 http://www.indiafooddrinkexpo.com/news/the_growth_story_of_the_indian
_beverage
_market, (The growth story of the Indian beverage market, August 2009)
 Coca-Cola to open fruit-drink plant in India, report, 03-Jun-2010,

(http://www.ap- foodtechnology.com/Industry-drivers/Coca-Cola-
to-open-fruit-drink-plant-in-India- report)
 Hema Gupta and Piyush Gupta(2008) “Indian paediatrics”, volume

45, march, 2008, (www.rediff.com/money/2004/jul/31spec3.htm,
“More juice in the juice market”)
 Lalitha Srinivasan, Fruit drink majors thirsty for more this summer,
Friday, Mar 21, 2008 (http://www.financialexpress.com/news/fruit-
drink-majors-thirsty-for-more-this- summer/286907/)
61 | P a g e

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Mini Project Report

…………………………Research Project Title……..………………………

Submitted in partial fulfillment of the requirements for the Two Years

Masters of Business Administration

Under Supervision of: Submitted By:

Dr./ Mr. / Ms :- Sandeep Singh Student Name:- Abhishek pal

Designation :- Proffssor Roll No:- MBA/08/007

SMS, Varanasi MBA II Semester

Many have contributed to the successful completion of this mini-project , I would

ROLL NO. MBA/08/007

3. ORGANIZATIONAL AND PROMOTERS DETAILS.....................................................7

4. PROJECT DESCRIPTION & FLOW SHEET.................................................................9

5. PROCUREMENT STRATEGY OF RAW MATERIAL & OTHER INPUTS.11

7. LIST OF STATUTORY CLEARANCES REQUIRED.....................................................12

11. TECHNO-COMMERCIAL VIABILITY OF THE PROJECT............................................16

12. FINANCIAL ANALYSIS..........................................................................................16

13. PROJECT IMPACT................................................................................................27

there has been a gradual shift towards consumption of

The driving forces of the growth of RTS juice worldwide are:

Increase in demand of healthy drinks

Rise in demand for high scale of volume in beverage industry

Decrease in demand of colas, carbonated drinks due to high sugar content

Preservative free and sugar-free fruit juice

Growing popularity of cold pressed juice

Current status of the unit:

a. Items to be manufactured: RTS Beverage (Juice)

b. Capacity of the plant: 500 Ltr/hr.

c. Source of power generation/electricity: Electricity form BSPHCL/SBPDCL, DG Set

d. Source of water supply: Own Borewell

e. Connectivity to road/railways: NH/SH details along with distance

f. Mode of transport: Pickup/Truck/Others

g. Market: Details of local market/other market

h. Employment Generation:14 nos.

j. Waste disposal: ETP/STP

3. Organizational and Promoters Details

Company Master Data

The unit is a proprietorship/partnership/private limited company/ firm and the

Brief profile of promoters is given below:

Networth: The details of the networth of the unit is given below:

Particulars Rs. In lakh

4. Project Description & Flow Sheet:

7. List of Statutory Clearances Required

Approval and clearances Department/ Offices to be

Khata no. Plot no. Area Boundary

a. Investment in land and land development

b. Investment in civil work

Proposed Civil Work details:

Proposed civil work

Plant & machinery

Plant & machinery*

1 RTS juice processing plant 30.00

Misc. Fixed Assets

Preliminary & pre-operative expenses

Pre-operative expenses have been considered considering the tentative expenditure to be

Amount proposed to be invested towards contingency is Rs. 5.00 lakh

Margin money for the working capital

Total Salary Total Salary

6 Peon/Security Guard 2 8,000 16,000 192,000

10. Means of Finance