PROJECT

REPORT

JAM & JELLY

PURPOSE OF THE DOCUMENT

T his particular pre-feasibility is regarding Jam & Jelly

The objective of the pre-feasibility is primarily to facilitate potential entrepreneurs’ in

project identification for investment and in order to serve this objective; the
document covers various aspects of the project concept development, startup, marketing,
and finance and business 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.]

Prepared By:

Institute for Industrial development

A unit of M/S Samadhan Samiti
Email: [email protected]
Phone: +91 7408733333,
+91 7607655555
 JAM & JELLY
Introduction

Many varieties of fruit preserves are made globally, including sweet fruit
preserves, such as those made from strawberry or apricot, and savoury
preserves, such as those made from tomatoes or squash. The
ingredients used and how they are prepared determine the type of
preserves; jams, jellies, and marmalades are all examples of different
styles of fruit preserves that vary based upon the fruit used. In English,
the word, in plural form, "preserves" is used to describe all types of jams
and jellies.

Jam typically contains both the juice and flesh of a fruit or vegetable,
although one cookbook defines it as a cooked and jelled puree. The
term "jam" refers to a product made of whole fruit cut into pieces or
crushed, then heated with water and sugar to activate its pectin before
being put into containers.

Jelly refers exclusively to a clear or translucent fruit spread made from

sweetened fruit (or vegetable) juice—thus differing from jam by
excluding the fruit's flesh—and is set by using its naturally
occurring pectin, whereas outside North America jelly more often refers
to a gelatin-based dessert, though the term is also used to refer to clear
jams such as blackcurrant and apple. In the United Kingdom, redcurrant
jelly is a condiment often served with lamb, game meat including
venison, turkey and goose in a festive or Sunday roast. It is a clear jam,
set with pectin from the fruit, and is made in the same way, by adding
the redcurrants to sugar, boiling, and straining.

Formulation

Pectin is essential to the formation of Jam & jelly because it acts as

a gelling agent, meaning when the pectin chains combine, they create a
network that results in a gel. The strength and effectiveness of the side
chains and the bonds they form depend on the pH of the pectin.
Characteristics of Jam & Jelly
1. Jam and fruit preserves are made from fresh, frozen, concentrated, or
previously canned fruit that is cooked with sugar (and added pectin, if
required), until enough water has evaporated and it gels. The total
soluble solids (TSS) should be > 65%.
2. Jellies are gelatinous, clear, and made from fruit juice and sugar,
texture is firm, and it holds its shape. The TSS should be > 65%.
3. Marmalade is made from citrus fruit—sliced or diced, suspended in
clear jelly.
4. Lower In fat.

Description of Jam & Jelly Machine

Following machines are required for Jam & Jelly manufacturing unit.

1. Pulper Machine
2. Slicing Machine
3. Juice Extractor
4. Steam Jacketed Kettle
5. Mixer/Grinder
6. Bottle Washing and Filling Machine
7. Baby Boiler
8. Cap Sealing Machine
9. Stirrers, SS Utensils, Burner, Weighing Scales, Hand Gloves

These Machines are used to produce jam & jelly from the raw material.
With the help of this machine the work of mixing, extruding & packaging
completes in a very short span.

Jam & jelly Market Analysis

The global jam, jelly, and preserves market is projected to register a

CAGR of 3.6%, during the forecast period (2019-2024).
 Jams, jellies, and preserves are experiencing an increasing demand,
all over the world. In regions, like Europe and North America, these
products are consumed on a daily basis, by consumers of all age
groups. Jams, jellies and preserves have become a part of their daily
meals.

 The rising health issues, such as obesity, diabetes, and others, and
the availability of other kinds of spreads in the market are the major
restraints.

 As a result, consumers are demanding for jams, jellies, and preserves

that are fortified, contain low fat, low sugar, and possess other health-
promoting properties.

 Owing to the increasing demand for clean-label ingredients, there is an

increase in the usage of natural and organic ingredients, in the
preparation of jams, jellies, and preserves.

Jam & Jelly Manufacturing Process

Jam & jelly is created by boiling fruit, fruit pulp or canned fruit with water
to and adding a sweetening ingredient. In Canada, jam must contain at
least 45% of the named fruit and 66% water soluble solids. Jam may
contain small amounts of pectin, pectinous preparation or acid
ingredients if there is a deficiency in natural pectin. In Canada, Jam may
also contain a class II preservative, a pH adjusting agent, an antifoaming
agent and cannot contain any apple or rhubarb.

Machinery &Equipment’s required:

Description Value

Main Machinery price 700000

GST @ 18% 1,26,000

Total Cost 8,26,000

* Machine Value is exclusive of other transportation cost.

Furniture & Fixture Requirement:
Cost of office furniture (Table, chairs, workstation): Rs. 1,00,000.

Raw Material Requirement

The major consumables you require are fruits, sugar, pectin, additives,
preservatives, food colours etc.

Labour Requirement:

2 Manpower are required for the Jam & Jelly unit.

Includes:

1 skilled labour

1 unskilled Labour

Land &Building required:

Land required 650-700 Square Feet (approx.)

Approximate rent for the same is 13000 per Month.

Jam & Jelly License &Registration

For Proprietorship
 Obtain the GST registration.
 Fire/ Pollution Registration as required.
 Choice of a Brand Name of the product and secure the name with
Trademark if required.

Implementation Schedule

S.N. Activity Time Required

(In Months)

1 Registration, selection of site, statutory, 1 Month

Licensing
2 Order to Machine, Raw material & recruitment 1 Month

3 Training & market survey 1 Month

4 Commissioning & commercial production 1 Month

5 Arrangement of Finance 1 month

Total time Required (some activities shall rum 2-3 months

simultaneously) (approx.)
 PROJECT AT A GLANCE

1 Name of the Entrepreneur Xx

Constitution (legal Status)
2 : : Xx
3 Father's/Spouse’s Name Xx
4 Unit Address :
Taluk/Block: xx
District : xx
Pin:
E-Mail : xx
Mobile xx
5 Product and By Product : Jam & Jelly
Name of the project / business
6 activity proposed :

7 Cost of Project : Rs. 9.26

8 Means of Finance
Term Loan Rs. 8.33 Lacs
25% of 9.26 Lacs
KVIC Margin Money Rs. (2.315 Lacs)
Own Capital Rs. 1.70 Lacs
Debt Service Coverage Ratio
9 :
10 Pay Back Period : 5 years
11 Project Implementation Period : 6 months
12 Employment :
13 Power Requirement : 7 KW connection
14 Major Raw materials : fruits, sugar
Estimated Annual Sales Turnover 66 Lacs (at 50%
15 : capacity)
Detailed Cost of Project & Means of
16 Finance
COST OF PROJECT (Rs. In Lacs)
Particulars Amount
Land
Building & Civil
Work -
Plant & Machinery 8.26
Furniture &
Fixtures 1.00
Pre-operative Expenses
Contingencies
 Working Capital
Requirement 7.78
Total 17.04
MEANS OF FINANCE
Particulars Amount
Own Contribution 1.70
Bank Finance 8.33
working capital
from bank 7.00
Total 17.04
KVIC Margin 25% of 9.26 Lacs
Monery (2.315 Lacs)
 FINANCIAL ASSISTANCE REQUIRED

Term Loan of Rs. 8.33 Lacs and Working Capital limit of Rs. 7.00 Lacs

COST OF
PROJECT PARTICULARS AMOUNT AMOUNT AMOUNT
10.00% 90.00%
Building Civil Work

Plant & Machinery 8.26 0.83 7.43

Furniture & Fixtures and Other
Assets 1.00 0.10 0.90

Working capital 7.78 0.78 7.00

Total 17.04 1.80 15.33

MEANS OF
FINANCE PARTICULARS AMOUNT

Own Contribution 1.70

Bank Loan 8.33

Working capital Limit 7.00

Total 17.04
COMPUTATION OF PRODUCTION OF JAM & JELLY

Items to be Manufactured

Jam & Jelly

machine capacity per day 50 KG per hour

machine capacity per annum 96000KG

Production of Jam & jelly

Production Capacity KG

1st year 50% 48,000

2nd year 55% 52,800

3rd year 60% 57,600

4th year 65% 62,400

5th year 70% 67,200

Raw Material Cost

Year Capacity KG Amount

Utilisation (Rs. in lacs)

1st year 50% 100.00 48.00

2nd year 55% 103.00 54.38

3rd year 60% 105.00 60.48

4th year 65% 107.00 66.77

5th year 70% 110.00 73.92

Packaging Charges

Raw
Material KG Amount
Rate
perKG (Rs. in lacs)

1st year 48,000 6.00 2.88

2nd year 52,800 6.50 3.43

3rd year 57,600 7.00 4.03

4th year 62,400 7.50 4.68

5th year 67,200 8.00 5.38

COMPUTATION OF SALE

Particulars 1st year 2nd year 3rd year 4th year 5th year
Op Stock - 4,000 4,400 4,800 5,200
Production 48,000 52,800 57,600 62,400 67,200
Less : Closing Stock 4,000 4,400 4,800 5,200 5,600
Net Sale 44,000 52,400 57,200 62,000 66,800
sale price per KG 150.00 152.00 153.00 155.00 157.00
Sales (in Lacs) 66.00 79.65 87.52 96.10 104.88

BREAK UP OF LABOUR CHARGES

Particulars Wages No of Total

Per Month Employees Salary

Skilled 12000 1 12000

Unskilled 10000 2 20000

Total Salary Per Month 32000

Total Annual Labour Charges (in Lacs) 3.84

BREAK UP OF STAFF Charges

Particulars Wages No of Total

Per Month Employees Salary

Accountant 12000 1 12000

Helper 7000 1 7000

Total Salary Per Month 19000

Total Annual Labour Charges (in Lacs) 2.28

Utility Charges at 100% capacity (per month)

Particulars value Description
Power connection required 5 KWH
consumption per day 40 units
Consumption per month 800 units
Rate per Unit 7 Rs.
power Bill per month 5600 Rs.
PROJECTED PROFITABILITY STATEMENT

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Capacity Utilisation % 50% 55% 60% 65% 70%

SALES

Gross Sale

Jam & Jelly 66.00 79.65 87.52 96.10 104.88

Total 66.00 79.65 87.52 96.10 104.88

COST OF SALES

Raw Mateiral Consumed 48.00 54.38 60.48 66.77 73.92

Elecricity Expenses 0.67 0.74 0.81 0.89 0.98

Depriciation 1.34 1.14 0.98 0.83 0.71

Consumables 1.98 2.39 2.63 2.40 2.10

Repair & maintennace 1.32 1.75 1.93 2.11 2.31

other direct expenses 1.78 2.15 2.36 2.59 2.83

Bottle charges 2.88 3.43 4.03 4.68 5.38

Cost of Production 57.97 65.99 73.22 80.29 88.23

Add: Opening Stock /WIP - 4.83 5.50 6.10 6.69

Less: Closing Stock /WIP 4.83 5.50 6.10 6.69 7.35

Cost of Sales 53.14 65.32 72.61 79.70 87.57

GROSS PROFIT 12.86 14.33 14.90 16.40 17.31

salary to staff 2.28 2.51 2.76 3.03 3.34

Interest on Term Loan 0.83 0.78 0.63 0.49 0.07

Interest on working Capital 0.77 0.77 0.77 0.77 0.77

Rent 3.60 3.96 4.36 4.79 5.27

Selling & adm Exp 1.98 3.19 2.63 2.88 3.15

TOTAL 9.46 11.20 11.14 11.97 12.60

NET PROFIT 3.40 3.12 3.76 4.44 4.71

Taxation

PROFIT (After Tax) 3.40 3.12 3.76 4.44 4.71

PROJECTED BALANCE SHEET

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Liabilities

Capital

opening balance 4.11 5.73 7.69 10.13

Add:- Own Capital 1.70

Add:- Retained Profit 3.40 3.12 3.76 4.44 4.71

Less:- Drawings 1.00 1.50 1.80 2.00 2.20

Closing Blance 4.11 5.73 7.69 10.13 12.64

Subsidy Reserve 2.32 2.32 2.32 - -

Term Loan 7.67 6.35 5.03 1.39 0.18

Working Capital Limit 7.00 7.00 7.00 7.00 7.00

Sundry Creditors 2.40 2.54 3.02 3.34 3.70

Provisions & Other Liab 0.30 0.40 0.55 0.66 0.83

TOTAL : 23.80 24.34 25.62 22.52 24.34

Assets

Fixed Assets ( Gross) 9.26 9.26 9.26 9.26 9.26

Gross Dep. 1.34 2.48 3.46 4.29 5.00

Net Fixed Assets 7.92 6.78 5.80 4.97 4.26

FD of Subsidy 2.32 2.32 2.32

Current Assets

Sundry Debtors 2.75 3.32 4.38 4.00 5.24

Stock in Hand 8.83 10.03 11.14 12.25 13.51

Cash and Bank 1.98 1.89 1.98 1.29 1.26

TOTAL : 23.80 24.34 25.62 22.52 24.27

PROJECTED CASH FLOW STATEMENT

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

SOURCES OF FUND

Own Margin 1.70

Net Profit 3.40 3.12 3.76 4.44 4.71

Depriciation & Exp. W/off 1.34 1.14 0.98 0.83 0.71

Increase in Cash Credit 7.00 - - - -

Increase In Term Loan 8.33 - - - -

Increase in Creditors 2.40 0.14 0.49 0.31 0.36

Increase in Provisions & Oth lib 0.30 0.10 0.15 0.11 0.17

increase in subsidy 2.32

TOTAL : 26.80 4.51 5.37 5.69 5.94

APPLICATION OF FUND

Increase in Fixed Assets 9.26

Increase in Stock 8.83 1.20 1.11 1.11 1.26

Increase in Debtors 2.75 0.57 1.06 - 0.37 1.24

Repayment of Term Loan 0.66 1.32 1.32 3.64 1.28

Increase in FD 2.32 - - -

Drawings 1.00 1.50 1.80 2.00 2.20

Taxation - - - - -

TOTAL : 24.82 4.59 5.29 6.38 5.98

Opening Cash & Bank Balance - 1.98 1.89 1.98 1.29

Add : Surplus 1.98 - 0.08 0.09 - 0.69 - 0.03

Closing Cash & Bank Balance 1.98 1.89 1.98 1.29 1.26
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Finished Goods

4.83 5.50 6.10 6.69 7.35

Raw Material

4.00 4.53 5.04 5.56 6.16

Closing Stock 8.83 10.03 11.14 12.25 13.51

COMPUTATION OF WORKING CAPITAL REQUIREMENT

TRADITIONAL METHOD

Particulars Amount Own Margin Bank Finance

Finished Goods & Raw Material 8.83

Less : Creditors 2.40

Paid stock 6.43 10% 0.64 90% 5.79

Sundry Debtors 2.75 10% 0.28 90% 2.48

9.18 0.92 8.26

WORKING CAPITAL LIMIT DEMAND ( from Bank) 7.00

2nd Method

PARTICULARS 1st year 2nd year

Total Current Assets 13.56 15.24

Other Current Liabilities 2.70 2.94

Working Capital Gap 10.86 12.31

Min Working Capital

25% of WCG 2.71 3.08

Actual NWC 3.86 5.31

item III - IV 8.14 9.23

item III - V 7.00 7.00

MPBF (Lower of VI & VII) 7.00 7.00

3rd Method

PARTICULARS 1st year 2nd year

Total Current Assets 13.56 15.24

Other Current Liabilities 2.70 2.94

Working Capital Gap 10.86 12.31

Min Working Capital

25% of Current Assets 3.39 3.81

Actual NWC 3.86 5.31

item III - IV 7.47 8.50

item III - V 7.00 7.00

MPBF (Lower of VI & VII) 7.00 7.00

COMPUTATION OF DEPRECIATION

Description Plant & Machinery Furniture TOTAL

Rate of Depreciation 15.00% 10.00%

Opening Balance - - -

Addition 8.26 1.00 9.26

Total 8.26 1.00 9.26

Less : Depreciation 1.24 0.10 1.34

WDV at end of Year 7.02 0.90 7.92

Additions During The Year - - -

Total 7.02 0.90 7.92

Less : Depreciation 1.05 0.09 1.14

WDV at end of Year 5.97 0.81 6.78

Additions During The Year - - -

Total 5.97 0.81 6.78

Less : Depreciation 0.90 0.08 0.98

WDV at end of Year 5.07 0.73 5.80

Additions During The Year - - -

Total 5.07 0.73 5.80

Less : Depreciation 0.76 0.07 0.83

WDV at end of Year 4.31 0.66 4.97

Additions During The Year - - -

Total 4.31 0.66 4.97

Less : Depreciation 0.65 0.07 0.71

WDV at end of Year 3.67 0.59 4.26

s - - -
Total 3.67 0.59 4.26

Less : Depreciation 0.55 0.06 0.61

WDV at end of Year 3.12 0.53 3.65

Less : Depreciation 0.47 0.05 0.52

WDV at end of Year 2.65 0.48 3.13

Less : Depreciation 0.40 0.05 0.45

WDV at end of Year 2.25 0.43 2.68

CALCULATION OF D.S.C.R

1st 2nd 3rd 4th 5th

PARTICULARS year year year year year

CASH ACCRUALS 4.74 4.27 4.74 5.27 5.42

Interest on Term Loan 0.83 0.78 0.63 0.49 0.07

Total 5.57 5.04 5.37 5.76 5.50

REPAYMENT

Instalment of Term Loan 0.66 1.32 1.32 3.64 1.28

Interest on Term Loan 0.83 0.78 0.63 0.49 0.07

Total 1.49 2.10 1.95 4.13 1.35

DEBT SERVICE COVERAGE RATIO 3.75 2.41 2.75 1.39 4.06

AVERAGE D.S.C.R. 2.87

 REPAYMENT SCHEDULE OF TERM LOAN
Interest 11.00%
Closing
Year Particulars Amount Addition Total Interest Repayment Balance
ist Opening Balance

1st month - 8.33 8.33 - - 8.33

2nd month 8.33 - 8.33 0.08 - 8.33

3rd month 8.33 - 8.33 0.08 - 8.33

4th month 8.33 - 8.33 0.08 8.33

5th month 8.33 - 8.33 0.08 8.33

6th month 8.33 - 8.33 0.08 8.33

7th month 8.33 - 8.33 0.08 0.110 8.22

8th month 8.22 - 8.22 0.08 0.110 8.11

9th month 8.11 - 8.11 0.07 0.110 8.00

10th month 8.00 - 8.00 0.07 0.110 7.89

11th month 7.89 - 7.89 0.07 0.110 7.78

12th month 7.78 - 7.78 0.07 0.110 7.67

0.83 0.660
2nd Opening Balance

1st month 7.67 - 7.67 0.07 0.110 7.56

2nd month 7.56 - 7.56 0.07 0.110 7.45

3rd month 7.45 - 7.45 0.07 0.110 7.34

4th month 7.34 - 7.34 0.07 0.110 7.23

5th month 7.23 - 7.23 0.07 0.110 7.12

6th month 7.12 - 7.12 0.07 0.110 7.01

7th month 7.01 - 7.01 0.06 0.110 6.90

8th month 6.90 - 6.90 0.06 0.110 6.79

9th month 6.79 - 6.79 0.06 0.110 6.68

10th month 6.68 - 6.68 0.06 0.110 6.57

11th month 6.57 - 6.57 0.06 0.110 6.46

12th month 6.46 - 6.46 0.06 0.110 6.35

 0.78 1.320
3rd Opening Balance

1st month 6.35 - 6.35 0.06 0.110 6.24

2nd month 6.24 - 6.24 0.06 0.110 6.13

3rd month 6.13 - 6.13 0.06 0.110 6.02

4th month 6.02 - 6.02 0.06 0.110 5.91

5th month 5.91 - 5.91 0.05 0.110 5.80

6th month 5.80 - 5.80 0.05 0.110 5.69

7th month 5.69 - 5.69 0.05 0.110 5.58

8th month 5.58 - 5.58 0.05 0.110 5.47

9th month 5.47 - 5.47 0.05 0.110 5.36

10th month 5.36 - 5.36 0.05 0.110 5.25

11th month 5.25 - 5.25 0.05 0.110 5.14

12th month 5.14 - 5.14 0.05 0.110 5.03

0.63 1.320
4th Opening Balance

1st month 5.03 - 5.03 0.05 0.110 4.92

2nd month 4.92 - 4.92 0.05 0.110 4.81

3rd month 4.81 - 4.81 0.04 0.110 4.70

4th month 4.70 - 4.70 0.04 0.110 4.59

5th month 4.59 - 4.59 0.04 0.110 4.48

6th month 4.48 - 4.48 0.04 0.110 4.37

7th month 4.37 - 4.37 0.04 0.110 4.26

8th month 4.26 - 4.26 0.04 0.110 4.15

9th month 4.15 - 4.15 0.04 0.110 4.04

10th month 4.04 - 4.04 0.04 0.110 3.93

11th month 3.93 - 3.93 0.04 0.110 3.82

12th month(Subsidy
adjusted) 3.82 - 3.82 0.04 2.430 1.39
0.49 3.640
5th Opening Balance

1st month 1.39 - 1.39 0.01 0.110 1.28

 2nd month 1.28 - 1.28 0.01 0.110 1.17

3rd month 1.17 - 1.17 0.01 0.110 1.06

4th month 1.06 - 1.06 0.01 0.110 0.95

5th month 0.95 - 0.95 0.01 0.110 0.84

6th month 0.84 - 0.84 0.01 0.110 0.73

7th month 0.73 - 0.73 0.01 0.110 0.62

8th month 0.62 - 0.62 0.01 0.110 0.51

9th month 0.51 - 0.51 0.00 0.110 0.40

10th month 0.40 - 0.40 0.00 0.110 0.29

11th month 0.29 - 0.29 0.00 0.110 0.18

12th month 0.18 - 0.18 0.00 0.180 -

0.07 1.28

DOOR TO DOOR 60 MONTHS

MORATORIUM PERIOD 6 MONTHS
REPAYMENT PERIOD 54 MONTHS
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