How to Start Tomato Sauce, Puree, ketchup Processing plant business Project Report

How to Start Tomato Sauce, Puree, ketchup Processing plant business Project Report

Tomato, though botanically a fruit for the purpose of trade, is generally considered a vegetable because of the way in which it is consumed. Tomatoes are widely grown in all parts of the world. However, the yield per hectare is the highest (245 tonnes/hect.) in Netherlands. The world average yield of tomato is 23 tonnes per hectare. Indian average yield of tomato is 9.6 tonnes per hectare. Tomato products such as puree, juice, ketchup are commonly used commodities in households, hotels and restaurants. These items are used to enhance the taste of different food products. Tomato puree is used as a substitute of fresh tomato in cooking Ketchup is a sweeter and diluted version of puree(Pulp). Tomato sauce tastes sweet and sour. Both sauce and ketchup are consumed with food and snacks. Tomato is a valuable raw material used for processed products such as juice, puree, and paste, ketchup/sauce, and canned whole. The recent scientific advances have revolutionised tomato processing industries. This project profile has been prepared for production of Tomato Juice, Tomato Ketchup and Tomato Puree.

Market Potential Of Tomato Puree, Ketchup And Sauce

Due to increasing standards of living in the cities and the rapid urbanization taking place in the rural areas, consumption of tomato based products is expected to go up steadily. At present, the market of ketchup/puree, specially in the urban areas, is dominated by brands likes MEGGI and KISSAN. Some Medium and Small Companies are also engaged in its production. Estimated production of Sauce/Ketchup etc. in North India was around 4000 MT in 1995. The estimated demand for the products for the same period was 10000 MT which is expected to grow upto 12000 MT by 2005 AD. Thus presence of a demand supply gap of 6000 MT can be observed which may reach a figure of 8000 MT in 2005 AD. Thus there is ample scope for a unit to come up in this product sector to cater especially to the semi urban and rural sectors of north India. Tomato processing in India is still not very significant. Recently, there was a steady rise in production due to the entry of multinationals with better market infrastructure and sales promotion campaigns. With high fluctuation in market prices of fresh tomatoes in the urban market, there are good prospects for tomato juice, and tomato puree in place of fresh tomatoes in household sector. Besides the boom in the food service sector including fast food chain, has widened the demand potential for tomato ketchup and soups. Experiments have shown that advertisement and publicity have influenced the pattern of consumption of tomato products. Besides, tomato products have good export potential especially in the Middle East.

Tomato Processing Plan

Why Tomato Sauce Manufacturing Can Be A Profitable Business

Manufacturing tomato sauce is a profitable business venture if started with proper planning and presentation. India, being one of the largest producers of tomatoes provides a great market for the tomato sauce manufacturing as homemade tomato sauces are gaining great demand from the market. Their unmatched taste and quality are helping them stand apart. With an annual growth of over 20% per annum, the demand for tomato sauce is getting huge in India which is expected to rise more in times to come. It can be used along with snacks to coloring and seasoning in restaurants.  The eating culture of Indian people has certainly given rise to the use of tomato sauce extensively.

Tomato sauces being made in-house, without the use of preservatives are gaining huge popularity because of their quality and greater taste. It provides an opportunity for the industry people to sell their products at a higher rate, making profits. But due to less use of chemicals and preservatives, the homemade sauces don’t come with longer expiry dates. It is obvious that quantity and quality can’t stand together. The quantity products come with a lesser quality in comparison to the homemade products. These products also carry a great demand in the market as they are used by most people. It is cheap in nature thereby sufficing the need. Why Tomato Sauce Manufacturing Can Be A Profitable Business

Manufacturing tomato sauce is a profitable business venture if started with proper planning and presentation. India, being one of the largest producers of tomatoes provides a great market for the tomato sauce manufacturing as homemade tomato sauces are gaining great demand from the market. Their unmatched taste and quality are helping them stand apart. With an annual growth of over 20% per annum, the demand for tomato sauce is getting huge in India which is expected to rise more in times to come. It can be used along with snacks to coloring and seasoning in restaurants.  The eating culture of Indian people has certainly given rise to the use of tomato sauce extensively.

Tomato sauces being made in-house, without the use of preservatives are gaining huge popularity because of their quality and greater taste. It provides an opportunity for the industry people to sell their products at a higher rate, making profits. But due to less use of chemicals and preservatives, the homemade sauces don’t come with longer expiry dates. It is obvious that quantity and quality can’t stand together. The quantity products come with a lesser quality in comparison to the homemade products. These products also carry a great demand in the market as they are used by most people. It is cheap in nature thereby sufficing the need.

BASIS AND PRESUMPTIONS

1. The Project Profile has been prepared on the basis of single shift of 8-hrs. a day and 25 working days in a month at 75% efficiency.

2. It is presumed that in the Ist year, the capacity utilization will be 70% followed by 85% in the next year and 100% in the subsequent years.

3. Depreciation on machinery and equipments has been taken @ 10%. Depreciation on office furniture has been taken @ 20% per annum.

4. The rates given for salaries and wages for skilled workers and others are on the basis of the minimum rates in the State of U.P.

5. Interest rate for the fixed and working capital has been taken @ 14% on an average whether financed by the bankers or financial institutions.

6. The margin money required is minimum 30% of the total capital investment.

7. The rental value for the accomodation of office, workshop and other covered area has been taken @ Rs. 20/- per Sq. Mtr.

8. The rates for machinery, equipment and raw materials are those prevailing at the time of preparation of the project profile and are likely to vary from place to place and supplier to supplier. When a tailor made project profile is prepared, necessary changes are to be made.

9. The pay back period may be 5- years after the initial gestation period.

10. The gestation period in implementation of the project may be to the tune of 6 to 9 months which includes making all arrangements, completion of all formalities, market surveys and tieups etc. Once all the above arrangements are made and quality/standards achieved, 100% project capacity may be achieved at the end of three years.

11. To run the unit throughout the year, other fruit products such as squashes and juices can be prepared with addition of a few machinery and equipments.

IMPLEMENTATION SCHEDULE

The implementation of the project includes various jobs/exercises such as procurement of technical know how, transfer of technology, market surveys and tie-ups, preparation of project report, selection of site, registration, financing of project, procurement of machinery and raw materials etc., recruitment of staff, erection/ commissioning of machines, trial production and commercial production etc. Project implementation will take a period of 8 months from the date of approval of the scheme. Break-up of activities, with relative time for each activity is shown below:

Activity Period (In Months)

1. Scheme Preparation 0-1 month and approval

2. SSI Provisional 1-2 months Registration

3. Sanction of loan and 2-5 months FPO licence etc.

4. Clearance from State 3-4 months Pollution Control Board

5. Placement of order for 4-5 months machinery and delivery

6. Installation of machines 6-7 months

7. Power Connection 6-7 months

8. Trial run 7-8 months

9. Commercial Production 9 months onwards

TOMATO PUREE, KETCHUP AND SAUCE MANUFACTURING PROCESS

Special varieties of tomatoes like scarlet globe, early red bonny best, pondrosa, seoux, pasaruby, marglobe, etc. are suitable for preparation of processed products of tomato.

Tomato Juice Manufacturing Process

Fully ripe well developed colour tomatoes are washed, trimmed, steamed, crushed in a crusher or cut into pieces with knives. The crushed pieces are heated in the steam jacketted kettle till they become quite soften. The heated tomatoes are passed through the pulping machine using a fine mesh sieve to separate juice from seeds and the skin. The sugar and salt @ 1% is added and heated to 85-90ºC. The hot juice is then filled in bottles, sealed immediately and processed sterlised in boiling water for about 30 minutes and cooled.

Tomato Puree Manufacturing Process

The juice obtained as above is concentrated under vacuum to about 9% to 12% total solids so as to get tomato puree. The product is filled in bottles, crown corked and processed in boiling water for 30 min. and cooled.

Tomato Ketchup Manufacturing Process

The juice obtained as above is concentrated with spices, salt, sugar, etc. The spices like cloves, cardamom, pepper, cinnamon and other ingredients etc. are tied loosely in a muslin cloth and placed in boiling juice in steam Jacketted Kettle. The sugar, salt and vinegar or acetic acid, etc. are added later on. Generally concentration is done threefold. It is concentrated to 28 to 30% solids in which 12% are tomato solids. The final product could be preserved by addition of sodium benzoate @ 750 ppm. The tomato ketchup is filled hot into clean, dry bottles, crown corked and processed in boiling water for 30 minutes and cooled at room temperature.

Quality Control and Standards

The manufacture of processed fruits and vegetables is controlled by the Fruit Products Order (FPO), 1955 of the Govt. of India. The Fruit Products Order, 1955 is mandatory for tomato products. The tomato products should conform to specifications laid down in FPO. The FPO specifications are as follows:

 i) Tomato Juice: 5% total solids.

 ii) Tomato Puree: 9% total solids. Sodium Benzoate 250 ppm

 iii) Tomato Ketchup: 25% total solids. Acidity: 1.0% Sodium Benzoate: 750 ppm

 The Bureau of Indian Standards has laid down the following specifications for tomato   products:       

 i) Tomato Juice: IS:3881:1966.

 ii) Tomato Ketchup: IS:3882:1966.

 iii) Tomato Puree: IS:3883:1966.

Now in this era, the entrepreneurs may adopt HACCP and ISO 9000 certification.

Pollution Control.

There is no major pollution problem associated with the project. However, material waste (skin, seeds, etc.) are the main effluents for which the provision of treatment has been made in the profile. The entrepreneurs may however, contact the concerned State Pollution Control Board for detailed guidance in the matter. Minimum height of shed will be maintained and exhaust fans should be installed for removing congestion with proper ventilation, removal of cokes fumes etc. are to be maintained as per FPO guidelines.

Production Capacity                                   (per annum)

Tomato Juice                                                  24,000 Kg.

Tomato Puree                                                 24,000 Kg.

Tomato Ketchup                                            60,000 Kg.

Total  Rs.                                                       48,72,000

Motive Power                                                15 K.W

Energy Conservation

The following steps may be taken for the conservation of energy:

1. Machinery and equipment parts, which are revolving and reciprocating should be properly,      lubricated from time to time with suitable lubricant oil.

2. Layout of the unit should be in such a way that no back tracking of material is there.

3. All electric switches may be turned off, when not required.

4. The entire transmission belt will be tightened before starting the work wherever applicable.

5. As far as possible solar energy and day light will be used keeping all the other lights off.

6. As far as possible inductive load of motor will be reduced and high power factor be used with the aid of capacitors of appropriate sizes.

FINANCIAL ASPECTS

A. Fixed Capital

Land and Building Amount                                   (In Rs.)

Land and Building (rented)                                        3,000

@ Rs 20 Sq. meter p.m.

Covered Area 150 Sq. meters

Machinery and Equipment Used in Tomato puree, Sauce, Juice and ketchup Plant

1. Steam boiler 150 kg/hr.

2. Washing machine (Rotary rod Washer equipped with spray arrangement, collection tank,etc.) with 10 HP motor

3. S.S. tilting type steam jacketed kettle of cap. 100 gallons

4. S.S. tilting type steam jacketted Vacuum kettle of cap. 100 gallons

5. Pulper cap. 1/2 ton per hr.

6. Exhaust and processing tank

7. Pasteuriser tank (500 lit. cap.)

8. Bottle washing machine with two heads complete with 1/4 HP motor

9. Vacuum filling machine (cap. 10 to 15 bottles/minute)

10.Water storage tank cap. 500 lit. (HDPE)

11. Misc. equipment such as buckets, cutting and peeling knives, etc.

12.Weighing balance 500 gm to 5 kg capacity

13. Crown cork machine

14.Weighing Scales platform type

15.Working Tables Al Top

16. Laboratory Equipment (brix meter, etc.)

17. Pollution Control Equipment

18. Office furniture and fixtures

Total Price                                                               Rs 6,50,000/-

B. Working Capital (for 3 month)                            Rs. 10,05,000/-

C. Total Capital Investment                                     Rs. 16,75000/-

MACHINERY UTILIZATION

In case of tomato products, the bottleneck operation is preparation of tomato juice. Efforts should be made that all machinery and equipments are properly serviced at regular intervals for maximum utilisation of machines as the process involves some manual operations also. It is expected that during first year machinery utilization will be 70% with 85% during second year to be followed by 100% in subsequent years.

FINANCIAL ANALYSIS

1. Cost of Production (per annum)                              Amount(In Rs.)

Total Recurring Cost per year                                             40,20,000

Depreciation on machinery and                                          60,000

equipment @ 10%

Depreciation of office equipment and                                 2,000

furniture @ 20%

Interest on total capital investment @ 14%                         2,34,500

Total                                                                                     43,16,500

2. Turn-over (per month)

Assuming 50% product of Tomato Juice from the raw tomato, the juice produced is 12,500 kg. out of which 2000 Kg. juice is sold in the form of Tomato Juice and 2500 Kg. tomato juice to form 2000 Kg.of tomato puree and the rest 8000 Kg. juice is again boiled and processed to produce 5000 kg. tomato ketchup.

So Net Sales

(turn over) (per year)= Rs. 48,72,000

3. Net Profit

(per annum) (Before Income Tax)

Sales – Cost of Production= Rs. 5.555 lakhs

4. Net Profit Ratio

= (Net Profit × 100) / Turn over

= (5.555 × 100) / 48.72

= 11.4%

5. Rate of Return = (Net Profit × 100) / Total Investment

= (5.555 × 100) / 16.75

= 33.16%

6. Break-even Point

(1) Fixed Cost (per annum)                                      Amount(In Rs.)

(a) Total Depreciation (on m/c. and                                      62,000

equipment, dies, tools, furniture)

(b) Rent                                                                                 36,000

(c) Interest on Total Investment                                            2,34,500

(d) Insurance                                                                        24,000

(e) 40% of salary                                                                  2,76,480

(f) 40% of other contingent expenses                                  1,60,800

excluding insurance

Total                                                                                       7,93,780

B.E.P = (Fixed Cost × 100) / (Fixed Cost + Profit)

= (7,93,780 × 100) / ( 7,93,780 + 5,55,500 )

= 13,49,280

= 60%

Note : For Manufacturers and suppliers of Tomato Sauce, Puree, ketchup Processing plant and Machinery  and Raw material Manufacturers and suppliers of Tomato Sauce, Puree, ketchup Processing plant

 

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