Product Code	:	No specific code is available
Quality and Standards	:	The unit may produce the products as per specifications available in F.P.O. Rules 1955 and amendments therein and the Prevention of Food Adulteration Act, 1955.
Production Capacity	:	Qty. : 300 MT, Value : Rs. 6,85,92,000 per annum.
Uploaded on	:	March 2006

Introduction

The jackfruit botanically known as Artocarpus heterophyllus lam, one of the popular fruits of India, is believed to be indigenous in our country. It is grown extensively in the west coast, Assam, West Bengal, Orissa and Bihar. The name jack is said to be an adoption of Portuguese 'Jaca' which in turn is believed to have originated from Malayalam name of the fruit, namely 'Chakka'. Among the other Indian names of the fruit are: Pansa (Sanskrit and Telagu), Katahal (Hindi), Phanas (Marathi), Pala (Tamil), Halasu (Kannada). Fully ripe jackfruit is sweet and has an exotic flavour. The bulbs (edible flakes) contain 7.5% sugar on dry weight basis and a fair amount of Carotene (Vitamin A). The seeds are rich in Carbohydrates and also a good source of Vitamins. Ripe fruits are used for nectar and jams. Unripe fruits are also used for culinary preparations like chips, pickles, etc.

Market Potential

There is a prospective market for these products in Kerala as well as outside the State. It is also learnt that there is a good export market potential for these items especially in Middle East countries. In view of the above, it is envisaged that there is a good scope for setting up jackfruit processing units in jack growing areas. This will not only help the farmers to utilize the perishable raw material but also generate more employment opportunities in rural areas. About twenty to twenty five units are engaged in unorganized sector manufacturing jack chips and jackfruit preserves.

Basis and Presumptions

1. The unit proposes to work atleast 200 days per annum on three shift basis of eight hrs. each. However, the production activity will be available only for 6 months . For the balance period it would be better to utilise the plant to process some other product. However, the benefits for the same have not been taken in to account while making this report.
2. The unit can achieve its full capacity utilization during the 3rd year of operation.
3. The wages for skilled workers is taken as per prevailing rates in North India.
4. Interest rate for total capital investment is calculated @ 12% per annum .
5. The entrepreneur is expected to raise 20 - 25% of the capital as margin money.
6. The unit proposes to construct own building as per F.P.O. specifications while the cost of construction is based on local enquiry.
7. Costs of land, civil construction and machinery and equipments are tentative and should be crosschecked as per the market value at the time of putting up the project.

Technical Aspects

Process of Manufacture

Canned Jackfruit

The crisp bulbs of the ripe Jackfruit are used for canning in sugar syrup. Yield of bulbs varies from 20 to 25 per cent depending upon the weight of fruit. After cutting the fruit in several pieces, the bulbs are removed with hand. As the fruit contains a white highly sticky latex, a little gingili oil or any vegetable oil is smeared on the hands as the latex is soluble in the oil. The seeds are removed from the bulbs. The bulbs are then canned either as whole or as halves or quarters. Syrup of 40ºB with 0.5% citric acid is used to increase acidity level as the PH to 5.2. The canned jackfruit has an exotic flavour and is relished by all sections. The outer skin of the fruit which is a waste material is rich in pectin. This can be used for the preparation of pectin. A good jelly can be also made out of the peel, and the inner part of the fruit. The seeds are used as vegetable in every preparation.

Jackfruit Nectar

The bulb are removed from ripe jackfruit and passed through a pulping/ fruit mill. They are then mixed with about 10% hot water and passed through a pulper having a fine sieve of 1 mm hole. The pulp is used for preparing nectar.

Jack Chip

Raw jackfruit is the basic raw material for fried jack chips. First of all, raw jack fruit are cut into large pieces. The bulbs are then removed with hand. The seeds are also removed. The raw bulbs are then cut into suitable length wise pieces. These pieces are fried in coconut oil or refined vegetable oil. Salt may be added to the frying pieces to enhance its taste and preservation. They are packed in polythene bags and sealed with sealing machine.

Quality Control and Standards

The products envisaged in the project are governed by F.P.O. Rules 1955. The manufacturer has to obtain F.P.O. license from the Ministry of Food Processing, Government of India. Since this project has a maximum annual capacity of 100 MT, the unit is categorized as small scale 'A' unit as per FPO terminology. The product should also comply with PFA standards and GMP (Good Manufacturing Practices).

Production Capacity (per annum)

a) Quantity	:	300 MT
b) Value	:	Rs. 6,85,92,000

Motive Power

100 KW

Financial Aspects
Fixed Capital

(i) Land and Building	Amount (In Rs.)
Land – 4000 Sq.mtr. @ Rs. 4000 / Sq. mtr	1,60,00,000
Boundary wall and gates	10,00,000
Finished goods and raw materials godown, offices etc. laboratory, workers room, security room 750 sq. mtr. @ Rs. 9,000 per sq. m.	67,50,000
Working shed including concrete storage tanks -height 14',area 100 Sq.mtr., raw water and bore well, boiler area, process water, DG set 1000 Sq. Mtr @ Rs. 8000 per sq.m.	80,00,000
Total Cost of Land and Building	3,17,50,000

ii) Machinery and Equipments

Sl. No.	Description	Qty. /No.	Amount (In Rs.)
1.	Utility plants: Baby boiler - 500kg./hr with accessories like soft water plant, oil storage tank and pump, chimney along with steam piping etc. b) DG set with accessories DM water plant with accessories Effluent treatment plant Bore well with accessories of water storage and distribution in plant as well as in office premises etc.	1	30,00,000
2.	500 lit, cap. Steam jacketed kettle of S.S. construction, with agitator assembly, gear box and motor	1	5,00,000
3.	Straight feeding exhaust box with 2 HP motor, starter and gear box.	1	1,00,000
4.	Sterilization tanks SS		2,00,000
5.	Semi-automatic can line for filling sealing and labeling and packing .	1	10,00,000
6.	Can body reformer with motor and starter	1	1,00,000
7.	Can body flanger with motor and starter	1	1,00,000
8.	Fruit mill with 2 HP motor starter with blade and sieves suitable for jackfruit	1	2,00,000
9.	Bottle washing, filling, sealing and packing	1	10,00,000
10.	Material handling equipment	1	5,00,000
11.	Frying equipments		2,00,000
12.	Laboratory equipments		10,00,000
13.	Storage containers for pickles		3,00,000
14.	Misc. Equipments for plant		10,00,000
15.	Total plant and equipment		92,00,000
16.	Excise sales tax and other expenses @ 25% of total plant and m/c cost		23,00,000
17.	Landed cost of plant and m/c		1,15,00,000
18.	Erection and electrification @ 10% of 17		11,50,000
19.	Total cost of erected plant and equipment		1,26,50,000
Total			4,60,00,000
Cost of office equipments and furniture			8,00,000
Total(ii)			1,34,50,000 4,68,00,000
(iii) Pre-operative Expenses			5,00,000
Total Fixed Capital (i + ii + iii)			4,57,00,000 7,90,50,000

B. Working Capital (per month)
Personnel

Sl. No.	Designation	No.	Salary (In Rs.)	Total (In Rs.)
1.	Food Technologist-cum-Manager	1	30,000	30,000
2.	Production Manager production supervisors, laboratory chemists and incharge , maintenance engineers and staff	8		1,00,000
3.	Commercial staff, purchase, stores, sales and marketing finance and accounts, and administrative staff	8		1,00,000
4.	Plant operation staff skilled and semi skilled unskilled personnel	25		1,50,000
5.	Administrative staff, peon and security staff	10		40,000
Total				4,20,000
Perquisites @ 22% of Salary				92,000
Total				5,12,000

ii) Raw Material including Packaging Material Requirement

Sl. No	Particulars	Qty.	Rate (In Rs.)	Amount (In Rs.)
1	Jackfruit (ripe)	75 MT	2500	1,88,000
2	Jackfruit (raw)	48 MT	2500	1,20,000
3	Sugar and Jaggery	12 MT	18000	2,16,000
4	Citric acid, pectin, colours and chemicals	LS	-	50,000
5	Vegetable oil	90 MT	40000	36,00,000
6	A 2-1/2 size can	14760 Nos	15	2,21,000
7.	Jam/pickles bottle (500 ml cap.)	40050 Nos.	10	4,01,000
8.	Nectar, syrup bottle (680 ml cap)	18420 Nos.	7	1,29,000
9.	58 mm caps	13350 Nos.	1	13,000
10.	31.5 mm caps	18420 Nos.	1.0	18,000
11.	Labels	73500 Nos.	1.0	74,000
12.	Printed polythene bags	20010 Nos.	2.50	50,000
13.	Packaging cases	3300 Nos.	15	50,000
Total				51,30,000

iii) Utilities	Amount (In Rs.)
100 x 25 x 24 x 0.8 x 4	1,92,000
Fuel and Water charges	75,000
Total	2,67,000
iv) Other Contingent Expenses	Amount (In Rs.)
1. Repair and maintenance charges	34,000
2. Postage, stationery, telephone and communication expenses	15,000
3. Transportation	20,000
4. Advertisement, publicity, sales and marketing	2,00,000
5. Other miscellaneous and insurance expenses	70,000
Total	3,39,000
v) Total Recurring Expenditure	Amount (In Rs.)
1. Personnel	5,12,000
2. Raw material	51,30,000
3. Utilities	2,67,000
4. Contingent expenses	3,39,000
Total	62,48,000
(vi) Total Working Capital (on 2 months' basis)	Rs.1,24,96,000

Total Capital Investment

	Amount (In Rs.)
Fixed Capital	4,57,00,000
Working Capital	1,24,96,000
Total	5,81,96,000

Financial Analysis

Raw materials are seasonal. Hence, only raw material for six months has been taken into consideration.

1)	Cost of Production (per year)	Amount (In Rs.)
1.	Cost of raw materials (6 months)	3,07,80,000
2.	Salary and wages (12 months)	61,44,000
3.	Utilities avg. for 9 months	24,03,000
4.	Other contingent expenses	40,68,000
5.	Depreciation of building @ 5%	7,88,000
6.	Depreciation of machinery and equipment @ 10%	12,65,000
7.	Depreciation on office furniture @ 20%	1,60,000
8.	Interest on total capital investment @ 12%	69,84,000
Total		5,25,92,000

2. Turnover (per year)

Sl. No	Item	Qty. (MT)	Rate per MT	Total (In Rs.)
1.	Canned jackfruit	75	2,56,720	1,92,54,000
2.	Jack jam/preserve	75	2,08,586	1,56,44,000
3.	Jack nectar/ jack syrup	75	1,60,453	1,20,34,000
4.	Jack pickles	45	2,24,622	1,01,08,000
5.	Jack chips	30	3,85,000	1,15,52,000
Total				6,85,92,000

3.	Net Profit (per year)	Rs. Rs. 6,85,92,000 – Rs. 5,25,92,000 = 1,60,00,000
4.	Net Profit Ratio	30.4%
5.	Rate of Return on Investment	27.49%

6. Break-even Point

i)	Fixed Cost	Amount (In Rs.)
a)	Depreciation on machinery equipment and building	22,13,000
b)	Interest on total Investment	69,84,000
c)	40% of salary and wages	24,58,000
d)	40% of other contingent expenses	16,27,000
	Total	1,34,82,000 1,32,82,000

ii) Net Profit (per year)		Rs. 1,60,00,000
B.E.P.	=	FC ×100 = 13482000 FC + NP 13482000 + 1,60,00,000
	=	45.7%

Addresses of Machinery and Equipment Suppliers

1. M/s. Batliboi and Company Ltd.
   P.B. No. 3066, Old Railway Station Road,
   Kochi-682018.
2. M/s. B. Sen Barry and Co.
   65/11, New Rohtak Road, Karol Bagh,
   New Delhi-110005.
3. M/s. H and P Industries
   Near Mundupalam Junction,
   Thrissur -110006.
4. M/s. Raylons Metal Works
   P.O. Box No. 17426, JB Nagar, Andheri (E),
   Mumbai - 400059.
5. M/s. Laxmi Boilers
   2453-B, Karkmpatta Road, Pallimukku,
   Cochin-682016.

Contact for more information:

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com