apple saucev1

8/10/2019 Apple SauceV1

1/12

Apple Sauce

Team 10


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Apple Sauce

Apple sauce is a pure made of apples

It can be made with peeled or unpeeled apples and a variety of spices

(commonly cinnamon and allspice)

Flavorings or sweeteners such as sugar or honey are also commonly added

Inexpensive and is widely used in the United States and some European

countries


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Market Analysis

Number of urban middle class households increased by 6%

Annual disposable income increased by almost 17%

Consumer expenditure on food increased by about 9%

Apple sauce is a new product projected as a healthier alternative to tomato

ketchup

Indian consumers have become more health conscious due to growth in

education, easy availability of healthy products and increase in lifestyle

diseases

Between 2010 and 2013:

People are more concerned about their health and willing to spend more to

ensure they get better and safer food (organic products are 30% to 40% more

expensive than usual food)


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Market Estimation

For pilot phase Tier1 cities: Delhi, Mumbai, Chennai, Bangalore have been

considered

Total population= 4,11,86,028

Number of urban households= 93,71,163

Consumption (per household) = 500g/month

Total consumption= 93,71,163 X 500g/month= 46,85,581.5 kg/month


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Factory Set-Up : Location

Location : Baddi, Himachal Pradesh

Reason(s)

100 per cent outright excise duty exemption for a

period of ten years

100 per cent income tax exemption for an initial

period of five years and thereafter 30 per cent for

companies for a further period of five years

Capital investment subsidy of 15 per cent on plant

and machinery subject to a ceiling of Rs 30 lakhs

Proximity to Chandigarh

Good transport connectivity due to presence of

various MNCs like HUL, P&G, Cadbury, Colgate

Palmolive etc.

Apple Orchards located in Himachal Pradesh have

their co-operatives in Solan District.

Other allied industries like bottle manufacturing

located in the Baddi Industrial Area itself


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Factory Set-Up: Machinery

Typical equipment required for a sauce making plant is:

Storing systems

Slat Conveyer

Fruit and vegetables washing machine

Sorting Machine

Peeling Machines

Inspection Belt Conveyor

Crusher

Fruit Mill

Pulveriser

Kettle

Frying Pan

Pulping Machine Vacuum Evaporator

Pasteurizer

Aseptic storage and filling systems

Filling & Packaging line


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Factory Set-up : Flow Diag.

Apple

Receiving Slot

Lift

Washer Sorter

Conveyor

Crusher

Pre-heater Pulper

VacuumConcentration

Sterilizer

Aseptic Filter


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Pilot Phase

We plan to pilot our product for 3 months only in

tier 1 cities : Mumbai, Delhi, Chennai and

Bangalore

During this phase capital investment will beminimal as most of the equipment will be leased

This step helps us avoid the risk of high loses

Once the product is proven it will be a lot easierto fund full expansion


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Initial Capital Investment and

other fix cost Factory cost:

Land cost:

Processing equipment cost: Monthly Salaries:

Utilities:


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Package size and cost

The various variants of the sauce : 5gm sachet (for restaurants)

250gm and 500gm bottles

COST ANALYSIS:

Cost of raw materials :

1) Price of apples: Rs.45/kg

2) Total Cost of apples:

Rs.45*15000kg=Rs675000

3) Cost of preservatives and other

ingredients: Rs.20*15000kg= Rs.300000


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Total Cost of raw material : Rs.65*15000kg=Rs.975000

VARIABLE COST(per day) Raw Material :Rs.975000

Labour Cost : Rs.100000

Factory Operations : Rs.20000

Packaging: Rs.300000

Transportation: Rs.150000

Miscellaneous: Rs.50000


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Sales estimates and break even

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