Fruit Vinegar
Product Code : 60,000 bottles of 650 mL capacity
Uploaded on : March 2009
Product and its Applications
Vinegar is a natural product derived from alcoholic and acetous fermentation of a suitable medium such as fruits, malt, molasses, sugarcane juice etc. Vinegar is known to have various applications in homes, restaurants and in the food industries. It is used in pickle, chutney, tomato ketchup, sauces and various other condiment preparations. Vinegar aids digestion and improves the quality of cooked meat and fish. Vinegar should contain at least 3.75 g of acetic acid per 100 mL and also contain at least 1.5% w/v of total solids and 0.18% total ash.
Market Potential
Vinegar is largely produced in the cottage scale or in traditional sectors. Presently synthetic vinegar is also being produced. Natural fruit vinegar is nutritive, appealing and has a huge market demand.
Basis and Presumption
- The unit proposes to work at least 300 days per annum on single shift basis.
- The unit can achieve its full capacity utilization during the 3rd year of operation.
- The wages for skilled workers is taken as per prevailing rates in this type of industry.
- Interest rate for total capital investment is calculated @ 12% per annum.
- The entrepreneur is expected to raise 20-25% of the capital as margin money.
- The unit proposes to construct own building as per F.P.O. specifications.
- Costs of machinery and equipment are based on average prices enquired from machinery manufacturers.
Implementation schedule
Project implementation will take a period of 8 months. Break-up of the activities and relative time for each activity is shown below:
| Scheme preparation and approval | 01 month |
| SSI provisional registration | 1-2 months |
| Sanction of financial supports etc | 2-5 months |
| Installation of machinery and power connection | 6-8 months |
| Trial run and production | 01 month |
Technical aspects
Location
The plant can be located at any suitable place keeping in view the marketing convenience, availability of raw material, power, water and skilled manpower.
Process of Manufacture
Fruit vinegar is made from fruits e.g. pineapple, apple, grape, orange, banana, peach, apricot as well as sugarcane juice, coconut water, malt, molasses. The juice/ aqueous extract is fermented with Saccharomyces cerevisiae yeast after adjusting sugar concentration. The fermented alcoholic liquor is passed through vinegar generator for acetic acid fermentation using acetobactor culture. It takes nearly 15 days for completion of fermentation process. Vinegar contains about 4% acetic acid. The brewed vinegar is aged in plain oak barrels for at least 6 months to improve the flavour and bouquet. The final product is filtered, packed in bottles and sealed.
Quality Control and Standards
As per FPO specifications
Pollution Control
There is no major pollution problem associated with this industry except for disposal of waste which should be managed appropriately. The entrepreneurs are advised to take "No Objection Certificate" from the State Pollution Control Board.
Energy Conservation
The fuel for the steam generation in the boiler is coal or LDO depending upon the type of boiler. Proper care should be taken while utilizing the fuel for the steam production. There should be no leakage of steam in the pipe lines and adequate insulation should be provided.
Production Capacity
| Quantity | 42 tpa (60,000 bottles) |
| Installed capacity | 60 tpa |
| Optimum capacity utilization | 70% |
| Working days | 300 |
| Manpower | 12 |
| Utilities | |
| Motive Power | 30 kWh |
| Water | 3 kL/day |
Financial Aspects
Fixed Capital
Land & Building
Particulars |
Amount |
| Land 700 m 2 | 01.50 |
| Built up area 8,500 m 2 - | 03.50 |
| Total cost of land and building | 05.00 |
Machinery and Equipment
Description |
Amount |
| Vinegar generator, hydraulic press, filter press, fermentation tanks, weighing scales, trolleys, Polythene carboys, wooden barrels, bottle washing unit, PP cap sealing machine, lab equipment. | 05.50 |
| Erection & electrification of machinery & equipment @10% cost | 00.50 |
| Office furniture & fixtures | 01.00 |
| Total | 07.00 |
Pre-operative Expenses
| Consultancy fee, project report, deposits with electricity department etc | 01.00 (Rs. lakh) |
Total Fixed Capital
| (9.1.1+9.1.2+9.1.3) | 13.00 (Rs. lakh) |
Recurring expenses per annum
Personnel
Designation |
No. |
Salary Per month |
Amount |
| Manager | 1 | 10,000 | 01.20 |
| Supervisor | 1 | 7,500 | 00.90 |
| Office Assistant | 1 | 5,000 | 00.60 |
| Technician | 1 | 4,500 | 00.54 |
| Skilled workers | 2 | 3,750 | 00.84 |
| Skilled workers | 8 | 12,000 | 11.52 |
| Unskilled workers | 6 | 3,000 | 02.16 |
| 06.24 | |||
| Perquisites @15 % | 00.96 | ||
| Total | 12 | 07.20 |
Raw Material including packaging materials
Particulars |
Qty (t) |
Rate/t (Rs.) |
Amount (Rs. lakh) |
| Fruits | 110 | 10,000 | 11.00 |
| Glass bottles & caps | 60,000 | 6,000/th | 03.60 |
| Labels | 60,000 | 1,000/th | 00.60 |
| Chemicals, cobs, sugar, culture | LS | LS | 00.40 |
| Lab consumables, misc. | LS | LS | 00.30 |
| Total | 15.90 |
Utilities
Particulars |
Amount (Rs. lakh) |
| Power | 00.92 |
| Water | 00.08 |
| Total | 01.00 |
Other Contingent Expenses
Description |
Amount (Rs. Lakh) |
| Repairs and maintenance @10% | 01.05 |
| Consumables & spares, others | 01.00 |
| Transport & travel | 00.55 |
| Publicity, postage, telephone | 00.30 |
| Insurance @ 1% | 00.10 |
| Total | 00.30 |
Total Recurring Expenditure
| (9.2.1 + 9.2.2 + 9.2.3 + 9.2.4) | 25.15 (Rs. lakh) |
Working Capital
| Recurring expenses for 3 months | 06.30 (Rs. lakh) |
9.4 Total Capital Investment |
Amount (Rs. lakh) |
| 9.4 Total Capital Investment | 13.00 |
| Working capital (Refer 9.3) | 06.30 |
| Total | 19.30 |
Financial Analysis
| Cost of Production (per annum) | Amount (Rs. lakh) |
| Recurring expenses (Refer 9.2.5) | 25.15 |
| Depreciation on building @ 5% | 00.18 |
| Depreciation on machinery @10% | 00.60 |
| Depreciation on furniture @ 20% | 00.20 |
| Interest on Capital Investment @12% | 02.32 |
| Total | 28.45 |
Financial Analysis
| Cost of Production (per annum) | Amount (Rs. lakh) |
| Recurring expenses (Refer 9.2.5) | 25.15 |
| Depreciation on building @ 5% | 00.18 |
| Depreciation on machinery @10% | 00.60 |
| Depreciation on furniture @ 20% | 00.20 |
| Interest on Capital Investment @12% | 02.32 |
| Total | 28.45 |
Sale Proceeds (Turnover) per year
| Recurring expenses (Refer 9.2.5) | 2116.00 |
| Depreciation on building @ 3.33% | 0027.00 |
| Depreciation on machinery @10% | 0052.80 |
| Depreciation on furniture @ 20% | 0008.40 |
| Interest on Capital Investment @ 12% | 0211.80 |
| Total | 2416.00 |
Sale Proceeds (Turnover) per year Amount (Rs. lakh)
Item |
Item |
Rate/t (Rs.) |
Amount |
| Fruit vinegar, packed in 650 mL bottles | 60,000 | 55 | 33.00 |
Net Profit (per year)
= Sales - Cost of production |
Net Profit Ratio
Net Profit ×100 Sales 4.55 X 100 33 = 13.8% |
Rate of Return on Investment
Net Profit ×100 Capital Investment 4.55 x 100 19.30 = 23.6 % |
Annual Fixed Cost
| Amount (Rs. Lakh) | |
| All depreciation | 00.98 |
| Interest | 02.32 |
| 40% of salary, wages, utility, contingency | 03.40 |
| Insurance | 00.10 |
| Total | 06.80 |
Break even Point
Annual Fixed Cost x100 Annual Fixed Cost + Profit 6.80 x 100 6.80+4.55 = 60% |
Addresses of Machinery and Equipment Suppliers
- Narangs Corporation
P-25/90 Connaught Place
New Delhi – 110001 - B.Sen Barry & Co.
65/11, New Rohtak Road
New Delhi – 110 005 - SSP (Pvt) Ltd.
13th Milestone, Mathura Road
Faridabad – 121003, Haryana - Nirmal Services
2254/23 Rajguru Road , Chuna Mandi, Paharganj
New Delhi – 110055 - Ganson Ltd.
645 Anna Salai
Chennai – 600006 - Grovers Pvt. Ltd.
223, Kaliandas Udyog Bhavan, Prabhadevi
Mumbai – 400 025 - Macneill and Magor Ltd.
4, Mangoe Lane
Kolkata – 700 001 - Batliboi Engineers ( Bangalore ) Pvt. Ltd.
99/2&3, N.R.Road
Bangalore – 560 002 - Gardners Corporation
158 Golf Links,
New Delhi – 110 003 - Narene Tulaman Manufacturers Pvt. Ltd.
Balanagar
Hyderabad – 500 037 - Raylon Metal Works
Kondivitta Lane , J.B.Nagar, Andheri
Mumbai – 400 059 - Bajaj Maschinen Pvt. Ltd.
7/20-7/27 Jai Laxmi Industrial Estate, Site IV
Sahibabad Industrial Area - 201010
Dist.Ghaziabad, UP
Contact for more information
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
