1

DETAILED PROJECT REPORT

ON
FROZEN SNACK FOOD
(Samosa, Nuggets, Pizza, Cutlets etc)
{#Food business; # Frozen foods; #Good food}

GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL, MEDIUM ENTERPRISE
MSME-DEVELOPMENT INSTITUTE
AYYANTHOLE P:O, THRISSUR-680003
TEL: 0487-2360216; 2360536,
Email - [email protected]
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COMMERCIAL DETAILS

Name of the Product Frozen Foods

HSN code of the product 21069099 (n.e.s)
NIC code of the product 10750
Clusters already existing on the product if No
any{Data from Cluster division O/o HQ):
Possibility to create establishes clusters on
At present chances to make a cluster of
the product frozen snack food is less due lack of
enough number of units
Probable areas or districts where the Palakkad / Alappuzha
products product manufacturing or project
can be established
Number of industries registered as MSME
is available in the manufacturing of the
product(Data division/ NlC Division of HQ)
Number of industries available in large
Nil
scale industries
Data about the imports of this product for
the past three years
Data available for the exports well against
this product for the past two years
Scope for the number of unit's number of
50 Units
years can be established further
The demand in the domestic market Such frozen snack food is not common
in Indian middle class market but can
achieve Good result in sales if pursued
professionally with reasonable cost.
Demand of the export market No doubt there will be Good Demand for
export market for such frozen snack food.
Technical Details
Sector in which the product is falling Food
End users of the products/sectors Individuals Customers/ Institutions
Governing Indian specification FSSAI
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Governing international specification Countrywide specification but generally

US FDA/ European Standard are the
popular international standards providing
specifications
Qualitative parameters of the product Product Should meet FSSAI quality
Standards
Details of the product Licenses to obtained FSSAI License
Equipment required for the manufacturing of Washing Tubs, Spray Washing, Stainless
the product Steel Tables for sorting , Grading,
Trimming, Steam Jacketed Kettles for
Cooking, Blending Kettle, Dough
Sheeting, Stuffing, Shaping Machine,
IQF (Continuous / Batch) blat freezing
Unit (at - 40 degree centigrade ), Packing
(duplex carton / Master Carton) , Cold
storage (at – 20 degree centigrade), Refer
carrier for transit.
Test facilities required for the product Minimal testing facility for sensory
analysis, RM standards, Shelf life etc
The technology existing the manufacturing of Yes
the product
Suggestedmoderntechnologyforimplementatio Freeze Drying Technology ( Better
noravailableinthemarket suggested Technology)
Raw Material required and availability Locally Available
Covering Raw material standards FSSAI Standards/ US FDA
Indian/International standards
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FLOWPROCESSCHARTOFTHEMANUFACTURING

Raw Material Preprocessing

Batch Cooking (stuffing material) with

Spices

Battering, Bread crumbing

IQF Deep Freezing

Packing

Cold Storing

Dispatch in container to Stockist /

Dealers/Retailers
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Project Report

(The detailed bankable project report of the product.(Financials, space/

manpower requirement, Technology, Quality requirements etc)

Product Frozen Snack Food (NIC Code 10750)

Quality And Standards As per FSSAI Standards

Production Capacity Per Annum 300 MT and Value : Rs.320 Lakhs

Month And Year Of Preparation July, 2021

PREPARED BY

Assistant Director
MSME Development Institute, Kanjani Road, Ayyanthole, Thrissur –
680003
Email: [email protected]
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1. INTRODUCTION

Curried Veg, Snacks, Mix Vegetable Paratha, samosa, nuggets, Pissa and
cutlets are combination of both nutrition and authentic Indian flavor. These
foods come with a filling of assorted vegetables mixed with rich Indian spices.
A wholesome breakfast item, these stuffed mix vegetable and Parathas are
perfect when you are running late as they can be cooked in a matter of a few
minutes. So these frozen foods are also known as Ready to Eat foods.

Ready to Eat foods (RTE) are convenience foods, enclosed in Aluminium /

metalized polyester container or pouches that only need to be cut and heated
before being served. Instant vegetables in retort pouches fall under this category
and find application not only as home meal replacement in working class
households but also in fast-food restaurants and multi cuisine food joints. These
are handy meals for armed forces and paramilitary forces deployed in remote
places. RTE food includes wide range of products viz. vegetarian / non -
vegetarian, basic food / delectable desserts, south and north Indian items
available from a specialty or multi cuisine restaurant & food joint only

2. MARKET POTENTIAL

Domestic market for frozen foods and RTE packaged food industry has
estimated growth rate of 25% and 40% in the metropolitan cities. As per
industry estimates by year 2015, Indian market for frozen and processed foods
products will be more than INR 800 Crores, with West India leading in buying,
and Mumbai being the biggest market of processed foods valuing around INR
600 Crores followed by North India, targeting Delhi, Delhi-CR and Chandigarh
being the biggest target market of processed foods. There are 5 to 6 large size
companies, which successfully manufactures and market range of Instant
vegetables in retort pouches in domestic and export markets. They are ITC India
Limited, Fazlani Export Pvt Ltd, MTR Foods Pvt Ltd, Kohinoor Foods Limited,
GITS Food Products Pvt. Ltd, Vimal Agro Product Pvt. Ltd.

The popularity of snack foods is growing fast day-by-day and now-a-days

frozen snack food have been emerging as potential snack food. A number of
organized as well as unorganized groups are already there catering to the needs
of tea stalls, restaurants, railway stations, tourist places etc. Still there is huge
demand to be met for the products in interior and remote places in different part
of the country.
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3. BASIS AND PRESUMPTIONS

(1) Two shifts per day and 300 working days in a year at 70%, 80%, 80%,
90%, 100% working efficiency for 1st to 5th year respectively.
(2) Five year period is required for achieving full capacity utilization.
(3) Labor wages are as per the rates prevailing in the area.
(4) Interest on Capital Investment 10% p.a.
(5) Payback period: 7 years
(6) Land cost Rs.1250 per sq.m

4. IMPLEMENTATION SCHEDULE

A period of 8 months would be required for start of production from the

date of approval of scheme. The breakup of the activities with relative time for
each activity is as follows:

1 Acquisition of land 1 month

2 Preparation of Project Report and MSME 1 month
Registration
3 Financial Assistance from Institutions 1 month
4 Building construction 3 months
5 Power Connection 0.5 months
6 Acquisition of Machinery 0.5 months
7 Installation of Machinery 0.25 months
8 Appointment of staff and labor 0.5 months
9 Trial production and shooting problems 0.5 months
10 Commercial Production 6th month onwards

5. TECHNICAL ASPECTS

5.1 Raw Material Handling

Some important points for frozen foods while handling raw materials:

Stock-of-Raw-Material: Handling of raw materials is important as it prevents

cross contamination from the raw material to ready-to-eat food. Contaminants
can be biological, chemical or physical hazards and once introduced into the raw
material they can remain in the food throughout the preparation and processing
procedure. Contamination can also be introduced into the food by raw material
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handlers. This is the reason why FSSAI has laid down certain guidelines for
handling raw material so that ready-to-eat food can be free from bacteria and
viruses that result in food borne diseases.

Important precautions to follow for procuring raw material: As a food

business operator the most important precaution you must always follow is to
use only good quality raw materials and never use low grade raw material. Make
sure that you procure your raw material only from licensed dealers and never
from unauthorized dealers or illegal slaughter houses. Check the raw materials
for any signs of deterioration or unpleasant odor; segregate those materials that
show signs of being unfit for human consumption. Check for signs of thawing
and deterioration in frozen food like water droplets on the product or any change
in texture. Thoroughly examine the product to ensure no physical hazard or
contamination has taken place. Look out for signs like change in texture, color
or smell which makes the raw material unfit for human consumption and which
indicates presence of chemical hazards that can be confirmed with laboratory
testing. Purchase only that amount of raw material for which you have adequate
capacity to store and keep preserved. Check all packaged food for ‘expiry date’/
‘best before’ /’Use by’ date and ensure correct packaging and storage conditions
have been maintained by the supplier.

Important procedure to follow after raw material has been procured. Even
after raw material has been procured unwanted contaminants can enter
accidently or if precautions have not been taken during storage or transportation.
It is recommended to transport and store consumable materials with proper
covers. Separate and store consumable foods, raw materials and non-food items.
Ensure that during transportation pathogen growth and toxin formation is
negligible. Control time, temperature and minimize exposure and use safe water
for cleaning so contamination is prevented. Receive and store chilled & high
risk foods at below 5°C temperature and frozen food at ˗18°C or below. Use
containers made of food grade material to store raw paste and sauces. Keep
these properly covered and check them regularly for fungal growth,
deterioration etc. Use racks/pallets which are made of non-absorbent material,
provided on the floor for keeping raw material. Rotate raw materials as well as
finished food material systematically either on a FIFO (First In First Out), FEFO
(First Expired First Out) and FMFO (First Manufactured First Out) basis. If you
follow these precautions you will be able to serve healthy and safe food to
consumers and you will feel proud of your good reputation for being a reliable
and responsible food business operator.
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5.2 Process of Manufacturing

 Raw materials procurement, segregation, dry storage, chill storage,

Frozen Storage.

 Pre-processing of raw materials such as sorting, washing, peeling, and

cutting.

 Cooking of snacks stuffing material in steam jacketed kettles with

spices, salt and other ingredients as per customized recipe for different
snacks.

 Manual preparation of different snacks by skilled laborers using pre-

manufactured stuffing materials and dough as per type of snack and its
formula against order in hand.

 Deep frying / shallow frying as required as per products. Cooling, Pre-

packing, deep freezing (-40 degree Celsius) using IQF freezer.
Duplexing, Cartooning and storing at – 20 degree Celsius for dispatch.

5.3. Quality Control and Standards

Unit must take FSSAI License and the product must meet FSSAI
Standards. Care should be taken at every level of manual operation to avoid
microbial contamination by ensuring all sort of personnel hygiene like proper
chlorination (Hand/ Foot), hand glouse, gumboot, Hair cover, Mask and other
heath parameters. Please make sure plant is HACCP certified.

5.4. Production Capacity (per annum)

Quantity : 300 MT
Value : Rs.320 Lakhs
Motive Power: 30HP

5.5. Pollution Control

The unit will create some effluent of washing water which may be treated
properly and drained off or may be used for irrigation or gardening purpose. The
unit must obtain pollution clearance certificate from concerned State Pollution
Control Board.
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5.6. Energy Conservation

Suitable measures should be adopted to use appropriate amount of fuel

and Electricity.

6. FINANCIAL ASPECTS

6.1. FIXED CAPITAL

6.1.1 Land & Building

Land 400 Sq. mtr. @ Rs.1250/- Rs.5,00,000/-

Built up Area
Description Size (foot) Area
(Sq.ft.)
Preprocessing Hall 30’x10’ 300
Production Hall 30’ x 20’ 600
Stores 20’ x 20’ 400
Finished Goods Stores 20’ x 20’ 400
Laboratory 10’ x 10’ 100
Office 10’ x 10’ 100
Total 1900

Cost of Construction @ Rs.250 per Sq.ft Rs.4,75,000

6.1.2 Machinery and Equipment

Description Rate Nos. Amount (in
(Rs.) Rs.)
Potato Peeler (body and chamber of 35,000 1 No. 70,000
stainless steel) cap. Per charge 25 Kg.
taking 3 to 4 minutes complete with motor.
Vegetables washing Tub ( Plastic) 500 15,000 1No 15,000
liters capacity
Vegetable chopping Machine (1000 kg/hr) 20,000 1 No. 20,000
Jacketed Kettle (100 kg/ batch) 40,000 2 No. 80,000
Blender (SS) ( 250 Kg/ Batch) 50,000 1No 50,000
Baby Boiler( Fire Wood) 1,00,000 1Nos 1,00,000
Dough Kneader ( 50 kg/ Batch) 35,000 2 No. 70,000
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SS Toped Working Tables (3ftx5 ft) 15.000 4 Nos 60,000

Deep fat fryer (oil tank of stainless steel, 33,000 2 No. 66,000
electrically heated, temp. control switch)
(50 kg / Batch)
Blast Freezer (1000 kg per day) ( Minus 40 4,00,000 1 No. 4,00,000
degree centigrade)
Cold store (Minus 20 degree centigrade) 5,00,000 1No. 5,00,000
5000 kg storage capacity
Polythene bag Sealing Machine 16,000 4 No. 64,000
TOTAL 14,95,000
Erection and Electrification 10% Rs.59500/-
Aluminium Table, Plastic Carry Rs.30,000/-
Containers etc
Furniture and Fixtures Rs.50,000/-
Pre-operative Expenses Rs.60,000/-
(Establishment cost, legal expenses,
Consultancy fee, startup expenses,
Interest during construction period,
Trial run expenses)
Total Fixed Capital requirement Say Rs.26,
Rs. 69,500/-
26.70 lakhs

1. TOTAL FIXED CAPITAL ( In Lakhs)

1 Land 5.00
2 Building 4.75
3 Machinery , Equipment & Preoperative 26.70
Total 36.45

6.2 WORKING CAPITAL (PER MONTH)

6.2.1 Raw material (In stock/ Process/Finished)

Description Quantity Rate Total (Rs.)
Wheat flour/ Rice Flour/ Maida 15 MT 30,000 4,50,000
Potatoes/other vegetables 25MT 20,000 5,00,000
Ground Nut Oil (Refined) 5 MT 80,000 4,00,000
Flavors, chemicals, spices etc. LS 2500/ MT 75,000
Packaging material LS 5000/ MT 1,50,000
Total 15, 75,000/-
Say:15.75 Lakhs
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6.2.2 Utilities (Per Month)

Water Rs. 5,000/-
Electricity Rs. 20,000/-
Fuel Rs. 15000/-
Total Rs. 40,000/- Say: 0.40 Lakhs

6.2.2.1 Year wise Raw material & Utility (In Lahks)

1 st Year 2nd Year 3rd Year 4th Year 5th Year

Capacity 70% 80% 80% 90% 100%
Utilization
Raw Materials 189.00 216.00 216.00 243.00 270.00
Utility 4.80 5.48 5.48 6.17 6.85
TOTAL 193.80 221.48 221.48 249.17 276.85

6.2.3 Personnel (Per Month)

Description Nos. Salary/Month (Rs.) Total (Rs.)

Manager 1 70,000 70,000

Supervisor(Sales/Production) 2 40,000 80,000
Clerk 1 25,000 25,000
Skilled Worker 4 25,000 1,00,000
Unskilled Workers 10 12,000 1,20,000
Total Rs. 3,95,000
Perquisites 10% Rs. 39500
Total Rs. 4,34,500
Say: 4.35 Lakhs

YEAR WISE SALARY & WAGES (PER ANNUM) In Lakhs

1 st Year 2nd Year 3rd Year 4th Year 5th Year
Capacity 70% 80% 80% 90% 100%
Utilization
Salary & Wages 52.20 59.65 59.65 67.10 74.55
( Annual
increase as per
Capacity
utilization)
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6.2.4 Other Contingencies

Consumable Stores Rs. 10,000
Maintenance and Repairs Rs. 15,000
Transportation & Travelling Rs. 50,000
Insurance Rs. 9000
Other Expenses Rs. 10,000
Total Rs. 94,000 Say: 0.94 Lakhs

YEAR WISE OTHER CONTINGENTCIES (PER ANNUM) In Lakhs

1 st Year 2nd Year 3rd Year 4th Year 5th Year
Capacity 70% 80% 80% 90% 100%
Utilization
11.28 12.89 12.89 14.50 16.11

Sl.No WORKING CAPITAL / MONTHLY ( FIRST YEAR) Rs. In Lakhs

1 Raw Materials 15.75
2 Utility 0.40
3 Salary And Wages 4.35
4 Other Contingent Expenses 0.94
TOTAL 21.44

6.3 PROJECT COST

FIXED CAPITAL Rs. In Lakhs
1 Land 5.0
2 Building 4.75
3 Machinery & Equipment 26.70
TOTAL 36.45

PROJECT COST (IN LAKHS)

A Non-Recurring Expenditure 36.45

B Working Capital For 3 Months 64.32
TOTAL 100.77
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7.0 FINANCIAL ANALYSIS

WORKING CAPITAL (YEAR WISE) In Lakhs

Years 1 st Year 2nd Year 3rd Year 4th Year 5th Year
Capacity 70% 80% 80% 90% 100%
Utilization
Total Working 257.28 294,03 294.03 330.78 367.53
Capital (Year wise)

7.1 Cost of Production per Annum (First Year)

Sl.No. Description Amount (Rs in Lakhs)

1. Recurring Expenses 257.22
2. Depreciation on Building 5% 0.24
3. Depreciation on Machinery 10% 1.50
4. Depreciation on Furniture 20% 0.10
5. Interest on total capital@10% 10.07
Total 269.13 Lakhs

7.1.1 YEAR WISE COST OF PRODUCTION (In Lakhs)

Head 1 st 2nd Year 3rd Year 4th Year 5th Year

Year
Capacity Utilization 70% 80% 80% 90% 100%
Recurring Expenditure 257.22 294.03 294.03 330.78 367.53
Depreciation on 0.24 0.22 0.20 0.19 0.18
Building 5%
Depreciation on 1.50 1.35 1.22 1.09 0.98
Machinery 10%
Depreciation on 0.10 0.08 0.06 0.05 0.04
Furniture 20%
Interest on Outstanding 10.07 7.5 7.5 2.5 0.0
Capital* 10%
Total 269.13 303.18 303.01 334.61 368.73
*Note:- 25 % of the total project cost (bank loan) will be paid back from the
end of first F.Y onwards except 3rd year from the profit generated.
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7.2 Turnover per annum(First Year)

Sl. No. Item Qty. (Kg.) Rate (Lakhs Value

/MT) (Lakhs)
1. Samosa/ Cutlets / Nugget’s 200 MT 1.00 200
2 Pizza 100 MT 1.20 120
TOTAL 320

7.2.1 YEAR WISE ANNUAL TURNOVER (In Lakhs)

1st Year 2nd Year 3rd Year 4th Year 5th Year
Capacity Utilization 70% 80% 80% 90% 100%
1 Samosa/ Cutlets / 200.00 228.57 228.57 257.14 285.71
Nugget’s
2 Pizza 120.00 137.14 137.14 154.28 171.42

TOTAL 320.00 365.71 365.71 411.42 457.14

7.3 Annual Profit (First Year)

Profit (Per annum) Turnover – Cost of Production

(Rs.320 lakhs- Rs. 269 lakhs)= 51 lakhs

7.4 Net Profit Ratio

Net Profit Ratio Net Profit per year
= _____________________ X 100
Turnover per year

= 51/320 x 100

= 15.9%
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7.5 Rate of Return

Rate of Return = Profit x 100/ Total Capital Investment

= 51/91 x 100

= 56%

7.6 Break-even Analysis (First Year)

Year wise Annual Fixed Cost (In Lakhs)
Year 1st Year 2nd Year 3rd Year 4th Year 5th Year
Capacity Utilization 70% 80% 80% 90% 100%
40% Salaries 20.88 23.86 23.86 26.84 29.82

40% Utilities 1.92 2.19 2.19 2.46 2.74

40% Other contingencies 4.51 5.15 5.15 5.80 6.44

Total Depreciation 1.75 1.65 1.48 1.33 1.2
Total Interest 10.07 7.5 7.5 5.0 2.5
Total 39.13 40.35 40.18 41.43 42.70

7.6.1YEAR WISE BREAK EVEN ANALYSIS (In Lakhs)

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

Year Year
Capacity Utilization 70% 80% 80% 90% 100%
A Sales Turnover 320.00 365.71 365.71 411.42 457.14
C Year Wise Fixed Cost 39.13 40.35 40.18 41.43 42.70
D Cost Of Production 269.13
303.18 303.01 334.61 368.73
E Profit Before Tax(A- 50.87 62.53 62.70 76.81 88.41
D)
Break-Even Point = 43.47% 39.22% 39.05% 35.03% 32.56%
Fixed Cost X 100
(Fixed Cost + Profit)
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Details of Testing Facilities Annexure- 1
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• Details of Raw materials suppliers : Locally Available

• Details of the machinery suppliers:

1 M/s. Pilotsmith (India) Pvt. Ltd.

Door.No.225,226,227/3, Near Railway Station, Kalletumkara
Irinjalakuda Rd, Kerala 680683
Website: https://www.pilotsmithindia.com
Email: [email protected]

2 M/s. Thermodyne Engineering Systems,

A-7/110 SSGT Road Industrial Area,
Ghaziabad, Up.
Unit 2: E-11 South East Zone MIA, Alwar – 301030, Rajasthan (India).
Phone : +91 – 120 – 4562332,+91-1204110482, +91 9990226006
[email protected], [email protected]
[email protected]

3 M/s. SARAH’S TECHNO

Aloor, Vellanchira P.O, Thrissur Dist, Kerala State, India – 680 697
Ph: 0480 2786655, Mob: +91 9349165966
Email: [email protected]
GST No: 32ATOPM4400D1Z5
4 M/s. Gem Corporation
#5, SBI Colony, Police Manickam Street, Ayanavaram, Chennai,
Tamilnadu,
India - 600 023.
Factory and Demonstration Center:
Plot No : 175A, 6th Street, North Sector 1, AmbatturSidco Industrial
Estate,
Chennai - 600 098.
Phone : 044 - 48581355 Mobile : +91 - 98400 54606
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SCHEMESANDCONSULTANCYSERVICES

A) EXISTING SCHEMES AVAILABLE AND THEIR DETAILS:

CGT-MSE: CGTMSE is an initiative of the Government of India in

collaboration with the Ministry of Micro, Small and Medium Enterprises
(MSME) and the Small Industries Development Bank of India (SIDBI) launched
on 30th August 2000. The CGTMSE full form is Credit Guarantee Fund Trust
for Micro and Small Enterprises, and as is evident from the name, it is a Trust
which provides the financial institutions with credit guarantee to provide loans
to SMEs and MSMEs. For more information please visit:
https://www.cgtmse.in/

Pradhan Mantri Kisan SAMPADA Yojana (PMKSY Scheme): The scheme

will be implemented by Ministry of Food Processing Industries (MoFPI). PM
Kisan SAMPADA Yojana is a comprehensive package which will result in
creation of modern infrastructure with efficient supply chain management from
farm gate to retail outlet. It will not only provide a big boost to the growth of
food processing sector in the country but also help in providing better returns to
farmers and is a big step towards doubling of farmers income, creating huge
employment opportunities especially in the rural areas, reducing wastage of
agricultural produce, increasing the processing level and enhancing the export of
the processed foods. For details please visit: https://mofpi.nic.in/Schemes/about-
pmksy-scheme
Contact Details:
Dr. Atya Nand
Director, Ministry of Food Processing Industries, Panchsheel Bhawan, August
Kranti Marg, New Delhi-110049, Tel:011-26406523,
Email: atyanand[at]nic[dot]in

B) Proposed scheme(if existing is not suitable): NIL

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C) Details of agencies who can provide guidance( CSIR, MSMETCs, Sector

councils, etc)
1 Director
CSIR - Central Food Technological Research Institute
Council of Scientific & Industrial Research
Ministry of Science & Technology,
Govt. Of India
Mysuru – 570020
For Technology Transfer Contact:
Head, TTBD; Ph: 0821-2514534; Mail : [email protected]
2 Director
Defence Food Research Laboratory ,
Ministry Of Defence, Siddarth Nagar,
Mysore-570 011
E-Mail : director[at]dfrl[dot]drdo[dot]in
Phone : 0821-2579003, 2579004, 2473783
Fax : 0821- 2473468

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