Frozen fruit and vegetable business is projected to be successful startups in developing countries like India, where they are consumed by almost every home on daily basis. This will not only make the availability of raw commodities easy but also generate revenue largely.

1. Setting up frozen
Fruit & Vegetable business
by
Abdul Rehman
(ID-16BTFT070)
B Tech Food Technology
COURSE: ENTREPRENERUSHIP IN FOOD INDUSTRY (APFE 613)

2. Introduction
• India is the second largest producer of fruit and vegetables in the
world with annual production of 94 million tonnes after China.
• Organic production of fruits and vegetables covers almost 18% in the
worldwide organic production.
• Vegetables like potato, onion, tomato, cabbage, and cauliflower
contribute the 60% of the worldwide total production.
• As a food technologist, we know that Consumers nowadays can
compromise with the price but not with the hygienic quality of food
which can lead the major health-related issues in future.

3. Reasons for startup
• Due to busy schedules
and lack of timing issues,
no one wants to go in a
crowded market to buy
fresh fruits and
vegetables in
supermarkets like big
bazaar or reliance fresh.
• The consumer wants to
get on-demand home
delivery at reasonable
prices.

4. Opportunities
• The Indian frozen
food market reaches
a value of around
₹74 billion in 2018
(APEDA).
• It is estimated to
further reach ₹188
billion in 2024,
expanding at a
CAGR of around
17% during 2019-
2024.

5. Growth Drivers
• The demand for frozen fruit and business is accelerated because of
following determinants:
• India’s working population is preferring convenience food products
that offer less meal preparation time and ease of consumption.
• Rising urbanisation has resulted in growth of organised retail sector in
India, equipped with cold chain facility to avail variety of frozen food
products in the market
• With the growth of Cafe and Quick Service Restaurant (QSR), frozen
food ensures consistency, speed of service and assured quality.

6. Cost Analysis
The proposed business plan will include following ongoing costs like:
• Packaging material cost
• Labour cost
• Transportation cost
• Marketing, advertising, and promotion cost
• Equipment cost like scales, refrigerated and freezer for frozen products
• A cold storage in the van to maintain freshness of fruit and vegetables.
• Insurance policies to cover business damages like theft, road-accident, fire-
related issues, employee liability and motor vehicle insurance for delivery
vehicles.

7. Cost Analysis (in contd).
• On an economic perspective, the total cost of freezing plant is generally
divided into two major areas, i.e., investment cost and production cost.
• Investment costs involves cost of general pre-operation expenses, such as
establishment of the company, necessary licenses, training, test or previous
studies and asset expenses like building, land, machines, materials, tools
and installation costs.
• Production costs are directly connected with the manufacturing operations
or the physical equipment of a process plant itself.
*Sample cost analysis and price determination for frozen mixed vegetables
with 1000kg/ month production rate is estimated on the basis of simplified
determinations.

8. Arbitrary estimation of Asset costs: Frozen vegetables
(Source: US FAO)
Assets Quantity Unit Cost (in ₹) Total cost (in ₹)
Semi Industrial
kitchen 1 50000 50000
Digital Scale 1 20000 20000
Domestic freezer 1 120000 120000
Storage freezer 1 60000 60000
Utensils 30000 30000
TOTAL 2,80,000

9. Key steps in
Fruit &
Vegetable
business
Planning
Costing
Expenses
Target
Market
Pricing
Profit

10. Steps in setting up the Frozen F & V business (in contd).
• Planning is essential for success as an entrepreneur. Consider some
topics like, startup and ongoing costs, target market, break even
calculation, name of the firm etc.
• Costs vary in accordance with fruit and vegetables market we wish to
open, but it should be relatively inexpensive to took up a start. From
overhead costs, product procurement cost, business operating licence
and insurance all are essential regulatory for opening of business
firm.
• Expenses majorly involves operating costs, market costs. The
assessment reflects the money spent cultivating and growing the
products.

11. Steps in setting up the Frozen F & V business (in contd).
• Target market will consist of consumers looking for fresh fruits and
produce at low prices, attracting both residential shoppers, chefs and
cooks.
• Pricing depends on seasonal availability and market or competitor
pricing. Keeping an eye on observing the fluctuations on regular/daily
basis will ensure maintaining profitability for our business.
• Market profitability vary depending on the distance and mode of
transportation available for business location, produce availability and
customer support.

12. Running portfolio: Uber for fruit and vegetables
delivery business model
• We know that best business model decides plan for determine the
revenue sources, customer base engagements, product investment
and the successful operation of a business.
• As per the statistics, today 80 % market majority depends upon the
traditional unorganised business model, but it can be a time to
showcase the disguised form of targeting local niche market with best
fruit and vegetable business apps by adopting new Uber for fruit and
vegetables business model.
• Investing in fruit and vegetable delivery app development can help to
get customers who prefer credit/debit cards for payment.

13. Conclusion
• Fruit and Vegetables commodity that are consumed on daily basis goes
through inefficient storage and handling practices, results into a
considerable amount of losses annually.
• On demand fruit and vegetable delivery business app development
company help the entrepreneur and business owners, increasing the
income of farmers as well.
• Investing in fruit and vegetable delivery business will channelize the fresh,
organic fruits and vegetables from the market to market to direct
customers via online fruit and vegetable ordering software promoting
effective SCMs.
• Maintaining a fresh quality of fruits and vegetables with good customer
base retention ratio can help in huge business growth.