Pickles Brief Feasibility Report

Brief Feasibility Report for Pickles Production Unit
Small and Micro Enterprises can Start Pickles Unit
http://www.ventureart.biz/
Dr. Zia Ahmed
This is a brief report on Pickles Production Unit. Pickles are one of most universally used processed food. Pickles are oldest of all kinds of processed food. These are very small units can be structured for micro and small enterprises depending upon need.
zia@milestonevision.com

1 zia@milestonevision.com | http://www.ventureart.biz/
Contents
1. History of Pickles .................................................................................................................................. 3
2. Fruits and Vegetables Pickles ................................................................................................................ 3
They all taste different!............................................................................................................................... 3
Consumption .............................................................................................................................................. 4
Varieties...................................................................................................................................................... 4
Popularity ................................................................................................................................................... 4
3. Production Methods ............................................................................................................................... 5
Usage .......................................................................................................................................................... 5
4. Indian Market......................................................................................................................................... 6
Processed Fruits & Vegetables: Market ..................................................................................................... 6
Industry & Government .............................................................................................................................. 6
Wastages & Value Additions ..................................................................................................................... 6
PRODUCTS ............................................................................................................................................... 6
Leading Processors ..................................................................................................................................... 7
Market Size ................................................................................................................................................. 7
CAPACITIES ............................................................................................................................................. 8
5. Brief Feasibility Report ........................................................................................................................10
6. BASIS AND PRESUMTIONS: ............................................................................................................11
Production capacity: ..................................................................................................................................11
Land and civil works: ................................................................................................................................11
Plant and Machinery: .................................................................................................................................12
Power requirement: ...................................................................................................................................12
Water requirement: ....................................................................................................................................12
Salaries and wages: ....................................................................................................................................12
7. Production Process Outline: ..................................................................................................................13
Quality specification: .................................................................................................................................13
PICKELS—MANGO Quality Management – Critical Control Points .....................................................13
Production capacity ...................................................................................................................................14
Pollution control needs: .............................................................................................................................14
8. FINANCIAL ASPECTS: ......................................................................................................................15
Project costs ...............................................................................................................................................15
9. WORKING CAPITAL REQUIREMENTS PER MONTH: .................................................................16
Salaries and Wages ....................................................................................................................................16
Raw materials and Packing materials requirement per month: ..................................................................16
Requirement of utilities per month: ...........................................................................................................17
Other contingent expenses: ........................................................................................................................17
Total working capital requirement per month. ..........................................................................................18
10. PROFITABILITY OF THE UNIT .......................................................................................................18
TURNOVER PER YEAR: ........................................................................................................................19
PROFITABILITY RATIOS ......................................................................................................................19

Table 1 - FIXED ASSETS COST ...................................................................................................................11
Table 2 - PLANT AND MACHINERY COST .................................................................................................12
Table 3 - PROJECT COST ............................................................................................................................15
Table 4 - SALARY AND WAGES ...................................................................................................................16
Table 5 - RAW MATERIAL AND PACKAGING MATERIAL ........................................................................16
Table 6 - UTILITIES PER MONTH ..............................................................................................................17
Table 7 - OTHER CONTINGENT COST.......................................................................................................17
Table 8 - WORKING CAPITAL REQUIREMENT ........................................................................................18
Table 9 - PROFITABILITY ANALYSIS..........................................................................................................18

1. History of Pickles
There are many types of pickles but what are exactly pickles? According to the dictionary, it refers to foods which have been preserved in vinegar and or with salt water. Brine refers to very salty water especially used for pickling. However, in Indian cooking, making pickles or "achar" uses oil as preservatives and various spices as flavoring.
Pickling is one of the oldest forms of food preservation, discovered at the dawn of civilization, thousands of years ago in Mesopotamia. Pickling is a method used to preserve food stuffs. The food items are placed in various liquids such as oil or vinegar to help preservation. Since ancient times, people have devised different ways to preserve and pickle foods so that during famines or long winters food is not a problem. The pickle making process began since the year 2030 BC. The pickles were prepared from cucumbers whose seeds were brought by the people from Northern India to the Tigris valley. From then various experiments were tried to preserve cucumbers. And the most recent one that using brine was also invented and became very famous. Earlier America was known for pickles. It is also believed that sour pickles help in balancing the acid and alkaline content of the human body which destroys the bacteria in the digestive tract. Pickles played a very important role in folk medicine. Pickles are a type of food that is eaten all around the world and is very famous. Pickling is an easy process and is also known as corning or brining In India pickles are made as a side dish. Many fruits and vegetables such as limes, raw mango, pumpkins, rose petals, cauliflower, radish, onion etc. Some pickles are also made using fish as the major ingredient. In India, it is known as "achar". Oil is used for preserving the food and a variety of spices such as cloves, cumin seeds, turmeric, asafetida, salt etc. Soft-skinned vegetables such as cucumbers, cabbages, beets and peppers are placed in a special brining solution containing vinegar, salt, water, various peppercorns and spices. After several hours, days or even weeks spent in this salt water bath, much of the vegetable's natural juices have been replaced with acidic brine that naturally discourages harmful bacterial growth. Most pickles do not require refrigeration because of this natural acidity.
2. Fruits and Vegetables Pickles
There are two basic types of pickles. Young vegetables and fruits are more suitable to be made into raw pickles. Raw fruit pickles are very famous in Penang. Many kinds of local fruits can be pickled. However, nutmeg and mangoes head the list
They all taste different!
There are dozens of types of mangoes and EACH of them can be processed and tastes very different from one another. As for cooked pickles, they are usually served with rice as a condiment. If you love sushi, you must be familiar with "gari", pink pickled ginger that is served with this Japanese delicacy. A meal at Korean restaurant always has "kimchi", pickled cabbage in chili powder. Pickled garlic mostly comes from Thailand Gherkin is a pickle made of cucumber and vinegar
North Americans prefer pickles with warts. Europeans prefer wartless pickles. Refrigerated pickles account for about 20 percent of all pickle sales.

International Pickle Week is one of the country's longest running food promotions --it's been observed for more than 50 years. IPW actually runs for 10 days during the last two weeks of May.
Americans consume more than 2.5 billion pounds of pickles each year - that's 20 billion pickles! And since it takes almost 4 billion pickles to reach the moon, all the pickles we eat would reach the moon and back more than 2 times!
Consumption
American households purchase pickles every 53 days.
More than 67 percent of all households eat pickles.
Americans consume more than 9 pounds of pickles per person annually.
Varieties There are hundreds of kinds of pickles to try. Among them are:
Dill - genuine, kosher, Polish, German style, overnight varieties, and more
Sweet - includes bread & butter, no-salt and sweet/hot varieties
Sour and Half-Sour
Pickled Peppers - jalapenos, pepperoncini, sweet and hot cherry peppers, banana peppers, etc.
Specialty Products - includes other types of pickled vegetables such as asparagus, beets, cauliflower, cocktail onions, green tomatoes, okra and sauerkraut to name a few
Pickles are usually available whole (including gherkins and midgets), or cut into halves, slices, spears, strips, chips, chunks, salad cubes, relish or sliced lengthwise for sandwiches.
Popularity
Dill pickles are the most popular type of pickle, followed by sweet. The interest in Mexican and Southwestern cuisine has made pickled peppers the "hot" news in the pickled vegetable category.

3. Production Methods
Refrigerated - Fresh, clean cucumbers are put into jars, covered with a seasoned pickling liquid and immediately refrigerated. The entire fermentation process takes place under refrigeration. Once the cucumbers have absorbed the seasonings, the pickles are then shipped. These extra- crispy pickles are available in the refrigerated section of the supermarket and are marked with an expiration date, since their shelf life is shorter than processed or fresh pack pickles. They also must be refrigerated at home.
Fresh Pack - Fresh, clean cucumbers are placed directly into jars and covered with a pickling solution of vinegar and seasonings, depending on the variety of pickles being produced. The containers are vacuum-sealed, quickly heated to pasteurize and then cooled. Fresh-pack pickles are generally crispier and less acidic than processed pickles. They also retain some of the flavor and color of fresh cucumbers. Jars of fresh pack pickles will say "fresh pack" on the label.
Processed - Clean cucumbers are placed in a salt brine solution in large tanks where they undergo full fermentation over the course of one to three months. The salt is added gradually throughout the process so it permeates the cucumbers evenly. Pickles are then removed from the tanks, rinsed of excess salt and put into jars with different additional seasonings. Processed pickles have a sharper flavor and are usually dark green and somewhat translucent.
Usage
Pickles are used most often as a sandwich accompaniment. They also are popular eaten as a snack right from the jar. Pickles and pickled peppers also are a convenient and versatile recipe ingredient. They add fast flavor to salsas and sauces, sandwiches, soups, appetizers, main dishes and more.
Pickles are fat free and low in calories. Average-size dill contains only 15 calories and an ounce of pickled peppers provides only 7 calories.

4. Indian Market
 India - largest producer of fruits and vegetables in the world
Mango - India is the largest producer 9.7 million MT (1998-99) : 60 % share of the global market
Processed Fruits & Vegetables: Market
 Fruits & vegetables processed in 1997-98- 1.2 million MT (Rs 850 crores - US$ 198 million)
 Primarily, an export oriented market; exports of processed fruits & vegetables during 1997-98 : Rs 390 crores (US $ 91 million)
Industry & Government
 Processed foods industry - accorded high priority status, owing to its export potential
 Around 20 laws concerning processed food products
 Fruit Products Order, 1955 regulates sector and necessitates licenses for all units
Government to set up a Rs. 500 crore (US $ 116 million) fund, that will be managed by IDBI, to boost growth.
Wastages & Value Additions
 Large amount of wastage - around 30 % of the total produce wasted
 Further, low value additions - only 1.8% of the produce is processed
 Consequently, domestic market for processed fruits & vegetables is very small
PRODUCTS
Fruits
Processed
Frozen
Fruit Pulp Juice and Squash Jams, Jellies Syrup
Slices
Mango, Banana, Apple, Guava, Peaches, Pineapple, lichees, Grapes, Strawberries
 Bottled juices, squashes, jams - popular in the domestic market
 Small quantities - < 10 % - of processed fruits & vegetables are canned; most of these are for exports

Vegetables
Processed
Frozen
Pickles, Chutney Paste/ Puree Chips/ Wafers Extruded Snack Powder - (Onion and Garlic)
Slices
Mushrooms, Onions, Garlic, Peas, Cauliflower, Potatoes, Tomatoes, Asparagus,Broccoli, Chilies, Coconuts
 Bottled pickles, paperboard (tetrapack) packed pastes / purees and multilayer film packed chips, wafers, snacks - popular in the domestic market
 Canned mushrooms - mainly for exports
Leading Processors
 Multinationals : Pepsi Foods, Hindustan Lever Brooke Bond Lipton, Bangalore; Nestle, New Delhi;
 Large Indian companies : Godrej Foods, Parle Products, American Dry Fruits
 In addition, several state co-operative federations (in Maharashtra, Karnataka, Punjab) are active.
Market Size
 Fruits & vegetables processed (1997-98) - 1.2 million MT (Rs 850 crores -US $ 151 million)
 Exports of processed fruits & vegetables - Rs 390 crores (US $ 91 million)
 Fruits & vegetable processing in India has been growing at 13% per annum
Leading brands (Indian)
 Jams: Kissan, Sil, Druk, Malas
 Sauce/Ketchup: Kissan, Maggi
 Tomato Puree: Godrej
 Fruit Juice: Frooti, Jumpin, Onjus, Real, Tropicana
 Canned & Bottled Products: Kissan,
 Pickles: Ruchi, Priya, Mother’s Recipe, Bedekar
 Chips/Extruded Snacks: Ruffles, Lays, Uncle Chips
 Frozen vegetables: Green Gold, Safal

CAPACITIES Industry Structure
 Industry highly fragmented
 Around 4,100 processing units, of which, over 85% units are in small and medium sector, predominantly in the west and north zones
 Processing units classified by size - small (< 50 TPA) medium (50 - 250 TPA) and large (> 250 TPA)
 Large Indian Corporates and multi-nationals can process 30 MT/hour
Location of units determined by proximity to raw materials, markets
Major Processing centres
 Jams & Jellies: Maharashtra, New Delhi , Karnataka
 Squashes : Karnataka, Gujarat, Maharashtra, Himachal Pradesh
 Fruit juice/Pulp: Karnataka, Maharashtra, Himachal Pradesh
 Tomato Products: Maharashtra, AP, Punjab, Karnataka
 Canned Products: New Delhi, Uttar Pradesh, Punjab, Haryana
 Frozen Products: Maharashtra, New Delhi, Karnataka
 Pickles: Maharashtra, AP, Tamilnadu
Industry Capacities, Production and Technology
 Installed Capacity 1998-99 : > 2 million MT (E)
 Production 1998-99 : 1.20 million MT (E)
 Technology for processing, especially by small units, primitive
 Raw material comprises 70% cost of inputs
 Manpower is very cheap
 Industry has a large number of 100% Export Oriented Units (EOUs)
 Foreign investments and technology participation prevalent.
Exports
 Major export earner - Rs 390 crores (US $ 91 million) during 1997-98
 In fruits, Banana, Grapes, lichee, Sapota are very competitive internationally in terms of prices
 Major export markets : Processed Fruits : UK, Netherlands, UAE, Saudi Arabia, USA, Germany Processed Vegetables : Switzerland, Germany, France, UK, USA, Spain
 Industry accorded priority status since 1988, owing to export potential -incentives and subsidies available for exports.

Market Characteristics
 Domestic market for processed fruits & vegetables still nascent - preference for fresh (rather than canned) fruit or vegetable
 Export markets - predominantly for canned fruits & vegetables
 Fruits, juices & pulp : Domestic market - tetrapacked fruit juices (Parle’s Frooti, Godrej's Jumpin, Dabur’s Real & Enkay’s Onjus - major brands); Export markets - canned fruits, fruit pulp, fruit juices
 Jams & jellies - Primarily for the domestic markets; major brands : Hindustan Lever’s Kissan , Marico’s Sil
 Pickles - Exported as well as sold in the domestic markets; Only regional brands of pickles (Ruchi - south, Bedekar in the west)
Key Success Factors
 Inputs sourcing : Dedicated sources can ensure consistent quality and prices
 Infrastructure: Efficient transport of inputs and finished goods, proper storage facilities, can minimize wastage.
 Process Control : Modern technology to maximize output
 Quality Controls : Strict adherence to international norms for better export prospects
Demand Drivers
 Burgeoning and largely educated middle class (100 million strong) with increasing disposable income
 Emergence of nuclear families
 Higher incidence of working women preferring convenience foods
 Influence of western lifestyle
 Export market

5. Brief Feasibility Report
A. INTRODUCTION:
Pickles are spicy food commodities prepared from either an agro or meat source. It is consumed in all household as a taste maker and a taste enricher. The present profile discusses the details of agro based pickles viz tender mango and lime only.
B. APPLICATION:
Pickles are used as a taste enricher along with food as a favorite side dish with every meal.
C. MARKET.
The market for the product is very vast. Since it is consumed by a cross section of households, it finds place in all departmental stores, self-service counter, ‘A’ and ‘B’ class retail outlets and bakery and confectionery stores.

6. BASIS AND PRESUMTIONS:
Production capacity:
The plant will be in operation for one shift a day of 8 hours duration. The plant will
operate to a capacity to produce 200 kilograms of pickles per day. The total quantity of pickles
produced in a month of 25 working days would be 5000 Kilograms.
Land and civil works:
Table 1 - FIXED ASSETS COST
45 USD = 45 INR INR USD
Land Required 0.5 acre 500,000.00 11,111.11
Cnstruction Sq. Ft
i. Raw material store 1000
ii. Finished goods store 1000
iii. Processing area 1000
iv. Office space 1500
v. Panel board room 200
vi. Gunny bags room 200
vii Machinery spares room 200
viii Toilet space 200
ix Miscellaneous space 500
Total Constructed area 5,800.00
Cost of Construction/sq.FT.
750.00 4,350,000.00 96,666.67
Total Cost of Land and Building 4,850,000.00 107,777.78

Plant and Machinery:
Table 2 - PLANT AND MACHINERY COST
Sl.No. Description Qty. Landed Price
A. Preparatory Section : INR USD
i. Stainless steel working tools. 1 100,000.00 2,222.22
ii. Stainless steel working tables. 5 300,000.00 6,666.67
iii Stainless steel working tanks. 20 200,000.00 4,444.44
iv Ceramic jars. 100,000.00 2,222.22
v Bottel washing machine. 1 100,000.00 2,222.22
vi Mini pulveriser for spices 0.00
vii (Hammer mill) 1 100,000.00 2,222.22
viii. Precision wighing scale. 2 100,000.00 2,222.22
ix. testing equipmeny 300,000.00 6,666.67
Total cost of machinery 1,300,000.00 28,888.89
Power requirement:
The power requirement is of single phase and the total requirement would be 5KW a
day.
Water requirement:
10 kiloliters per day or 250 kiloliters per month
Salaries and wages:
Salaries and wages/month INR/annum USD/annum
143,750 12 1,725,000.00 38,333.33

7. Production Process Outline:
The process comprises of cleaning the tender mangoes and Lime with oil by rubbing on a surface with a muslin cloth. Tender mangoes are pickled per se as a whole while lime is cut into four equal portions.
Pickling comprises of firsts dusting salt on the mangoes or lime and allowing for maturation. After maturation, a mixture of spices comprising of chili powder, mustard, turmeric etc. are added and allowed to mature before being bottled.
Quality specification:
A certificate of approval for production has ton be obtained under the fruit products order ‘FPO’.
PICKELS—MANGO Quality Management – Critical Control Points
RAW MATERIAL PROCUREMENT
STONE FORMATION STAGE, MANGO SHOULD NOT BE RIPE. VARIETY – ACCORDING TO AVAILABILITY
WASHING
PLAIN WATER, WATER SHOULD BE CHANGED AFTER 2 BATCHES, FRUIT SHOULD BE KEPT IN POROUS TRAYS TO LET WATER DRY.
CUTTING
SIZE OF PIECES EQUAL, SHARP CUTTING, FRUIT SHOULD NOT BE KEPT FOR LONG PERIOD
MIXING
QUALITY OF CUT FRUIT, SPICES, SALT ETC. AS PER RECIEP FRUIT SHOULD BE MIXED WITH SALT WITHIN 2 HOURS. THE SALT SHOULD BE FREE FROM EARTH CONTAMINATION
FILLING IN DRUMS
THE DRUM SHOULD BE CLEAN & DRY.
OIL TOPPING
AFTER 2 TO 3 DAYS LAYER OF OIL ADDED. 4 INCH LAYER SHOULD BE ADDED.
STORAGE
ANY FUNGUS FORMATION, DRUM LEAKAGE, CHECK EVERY 15 DAYS.
PICKLE
* GAS FORMATION. PROPER MIXING *PROPER ACID SALT RATIO, GOOD HYGIENIC CONDITION
* COLOUR * VARIETY OF CHILLI PARTY WITH MASALA AND PARTLY
POWDER AT THE TIME FINAL PACKING

* TIME OF MIXING
* LEAKAGE * NON UNIFORMALITY
IN PACKAGING
THICKNESS
* UNTRAINED LABOUR
* UNCERTAINITY OF PREOENSY
PROBLEMS RELATED TO PRODUCT QUALITYS - CAUSES
* CONSTANT CUPPLY (DROGUHT)
* SHELF LIFE (LOW)
* FLACTUATIONS IN MARKET PRICE.
* TRANSPORTATION
* NO LOCAL MARKET FOR ORGANIC PRODUCTS
* NO RESPONSIBAL FOR ANY
* THEY ARE NOT WHOLY DEPEND UP ON INCOME GETTING FROM WORK
Production capacity
The estimated production per month is around 5000 kilograms.
The ex-factory selling price per bottle of 200 grams would be Rs.20.00 or Rs.100 per kilogram. The sales revenue per month would amount to Rs.5.0 Lakhs. The annual sales revenue on full capacity utilization would yield Rs.60 Lakhs.
Pollution control needs:
No necessary as there are no pollutants or effluents.

8. FINANCIAL ASPECTS:
Project costs
Table 3 - PROJECT COST
S.No. Description Total INR Loan INR Equity INR
i. Land 500,000.00 300,000.00 200,000
ii. Civil works 4,250,000.00 2,550,000.00 1 ,700,000
iii. Plant machinery 1,300,000.00 780,000.00 520,000
iv. Testing equipment 1 00,000.00 60,000.00 40,000
v. Cost of power connection 1 00,000.00 60,000.00 40,000
vi. Electrification costs 2 00,000.00 120,000.00 80,000
vii. Erection, commissioning 6 00,000.00 360,000.00 240,000
viii. Molds, fixtures 1 00,000.00 60,000.00 40,000
ix. Delivery auto rickshaw 2 00,000.00 120,000.00 80,000
x. Office equipment 2 00,000.00 120,000.00 80,000
xi. Pre-operative expenses 5 00,000.00 300,000.00 200,000
xii Working capital margin 2,105,527.00 1,263,316.20 842,211
10,155,527.00 6,093,316.20 4,062,211
S.No. Description Total USD Loan USD Equity USD
i. Land 11,111.11 6,666.67 4,444
ii. Civil works 94,444.44 56,666.67 37,778
iii. Plant machinery 28,888.89 17,333.33 11,556
iv. Testing equipment 2,222.22 1,333.33 889
v. Cost of power connection 2,222.22 1,333.33 889
vi. Electrification costs 4,444.44 2,666.67 1,778
vii. Erection, commissioning 13,333.33 8,000.00 5,333
viii. Molds, fixtures 2,222.22 1,333.33 889
ix. Delivery auto rickshaw 4,444.44 2,666.67 1,778
x. Office equipment 4,444.44 2,666.67 1,778
xi. Pre-operative expenses 11,111.11 6,666.67 4,444
xii Working capital margin 46,789.49 28,073.69 18,716
225,678.38 135,407.03 90,271

9. WORKING CAPITAL REQUIREMENTS PER MONTH:
Salaries and Wages
Table 4 - SALARY AND WAGES
S.No. Description No. Salary/head Total/Salary USD
i. Director 1 25,000.00 25,000.00 555.56
ii. Production Supervisor 1 15,000.00 15,000.00 333.33
iii. Skilled workers 2 10,000.00 20,000.00 444.44
iv. Unskilled workers 4 7,500.00 30,000.00 666.67
v. Administrative staff 1 10,000.00 10,000.00 222.22
vi. Van driver 1 10,000.00 10,000.00 222.22
Security staff 3 5,000.00 15,000.00 333.33
Total 13 125,000.00 2 ,777.78
Perquisites @ 15% 15% 18,750.00 18,750.00 416.67
Grand total salaries and
wages 143,750.00 3,194.44
Raw materials and Packing materials requirement per month:
Table 5 - RAW MATERIAL AND PACKAGING MATERIAL
2 Raw materials and Packing materials requirement per month :
S.
No. Description Qty. Rate/unit Total INR Total USD
(kgs.) Rs. Rs.
i. Raw fruit 6,300 50 315,000.00 7 ,000.00
ii. Salt 500 10 5,000.00 111.11
iii. Spices, preservatives 170 200 34,000.00 755.56
iv. Oil 1,563 240 375,120.00 8 ,336.00
Total raw material 8,533 729,120.00 16,202.67
v. Glass bottles (nos.) ##### 20 205,000.00 4 ,555.56
vi. Cartons and straps (nos.) 575 30 17,250.00 383.33
Total packing material 222,250.00 4,938.89
Total raw + packing material 951,370.00 21,141.56

S.No. Particulars Qty. Rate/Unit Total value USD
i. Total raw material 8,533 0 729,120.00 16,202.67
ii. Total packing material 222,250.00 4,938.89
Total raw and packing
material
951,370.00 21,141.56
Requirement of utilities per month:
Table 6 - UTILITIES PER MONTH
S.No. Particulars Expenditure USD
i
Power 27000 KW @ Rs. 6.00
per unit 42,000.00 933.33
ii Steam 20,000.00 444.44
iii Furnace oil - not required
iv
Water 50 kilolitres @ Rs. 50
per KL 25,000.00 555.56
Total cost of utilities 87,000.00 1,933.33
Other contingent expenses:
Table 7 - OTHER CONTINGENT COST
S.No. Particulars Expenditure USD
i. Rent for land and building. 0 -
ii. Postage and stationery 5,000.00 111.11
iii. Telephones 10,000.00 222.22
iv. Consumable stores 10,000.00 222.22
v. Repairs and maintenance 15,000.00 333.33
vi. Transport charges 25,000.00 555.56
vii.
Loading, unloading charges 15,000.00 333.33
viii
Advertisement and publicity 10,000.00 222.22
ix Insurance 12,000.00 266.67
x Sales expenses 35,000.00 777.78
xi Miscellaneous expenses 15,000.00 333.33
-
Total contingent expenses 152,000.00 3,377.78

Total working capital requirement per month.
Table 8 - WORKING CAPITAL REQUIREMENT
S.No. Description Total Bank Equity
i. Raw materials 729,120.00 291,648.00 437,472.00
ii. Packing materials 222,250.00 88,900.00 133,350.00
iii. Finished goods 1,919,925.00 767,970.00 1,151,955.00
v. Salaries and wages 143,750.00 - 143,750.00
vi. Utilities 87,000.00 - 87,000.00
vii. Contingencies 152,000.00 - 152,000.00
Total working capital 3,254,045.00 1,148,518.00 2,105,527.00
10. PROFITABILITY OF THE UNIT
Table 9 - PROFITABILITY ANALYSIS
S.No. Description Cost
Total USD
i. Raw materials 8,749,440.00 194,432.00
ii. Packing materials 2,667,000.00 59,266.67
iii. Utilities 1,044,000.00 23,200.00
iv. Salaries and wages 1,725,000.00 38,333.33
v. Contingencies 1,824,000.00 40,533.33
vi. Depreciation on land civil
works @ 10%
425,000.00 9,444.44
vii. Depreciation on machinery @
10%
130,000.00
2,888.89
viii. Depreciation on office
equipment @ 20%
40,000.00
888.89
ix. Depreciation on vehicle @
10%
20,000.00
444.44
x. Depreciation on moulds,
fixtures @ 10%
10,000.00
222.22
xi. Interest on long term loan @
10%
609,331.62
13,540.70
xii. Interest on short term loan @
13%
149,307.34
3,317.94
Total production cost 17,393,078.96 386,512.87

TURNOVER PER YEAR:
S.No. Finished Product Qty. Rate/kg Total Value USD
kg Rupees
i. Pickles 92,156 250 23,039,100.00 511,980.00
1,919,925.00 42,665.00
PROFITABILITY RATIOS
Net Profit per year
Total turnover
Net Profit per Year
Total Investment
Total fixed cost
Total fixed cost + Net Profit
A. NET PROFIT BEFORE INCOME TAX 5,646,021.04
(Turnover – Production cost)
C. RATE OF RETURN on Equity 91.54%
D. BREAK EVEN POINT 64.27%
B. NET PROFIT RATIO 24.51%
For further details please contact us
zia@ziaahmed.org
www.ziaahmed.org
www.ziahmedkhan.com

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