Establishment of
Multi Fruit Processing-
Dragon Fruit, Mango,
Pomegranate
Agro & Food
Processing
Government of Gujarat
Contents
Project Concept 3
Market Potential 4
Growth Drivers 6
Gujarat – Competitive Advantage 7
Project Information 10
- Project Location
- Infrastructure Availability/ Connectivity
- Raw Material/ Manpower
- Key Players/ Machinery Suppliers
- Key Considerations
Project Financials 14
Approvals & Incentives 15
Key Department Contacts 17
.
.
Project Concept
Introduction
The project envisages setting up of fruit processing
unit based on the raw material strength of Gujarat
such as Dragon Fruit, Pomegranate, Mango, etc.
The manufacturing unit can focus on pulp, squash/
juices, jam & jellies, pickles, etc.
Fruit Processing
► Processing is one of the most effective solutions to reduce wastage. In India processing of
fruits and vegetables is extremely low and is below 2%. Value addition to the raw produce is
only 7% compared to as much as 23% in China, 45% in the Philippines and 88% in the UK.
► Thus, the processing industry holds tremendous potential not only for contributing to the
GDP but also for generating employment in rural areas and business opportunities for
entrepreneurs.
► There are various fruit processing technologies such as canning, dehydration, pickling,
provisional preservation, bottling etc. With the advent of technology and preservatives,
shelf life of such products has gone up and they can be preserved for many months with
proper packaging.
Fruit Processing Industry Overview:
The Global Fruit Processing Industry trends are:
330 325 ► Sales of processed fruits and vegetables has
increased in absolute numbers in past 5 years
320 314
► Economic growth and rising incomes have been
310 304 driving demand in developing economies for
Value in billion US$
300 frozen fruit and vegetables.
290 ► For juices and related products, rising health
290
279 280 280 consciousness and the increasing value of time in
280 developed economies is expanding demand for
270 these products from OECD country consumers.
► The product segments’ share of overall industry
260
revenue has grown over the past five years.
250 ► In, dried and dehydrated foods category the
2017 2018 2019 2020 2021 2022 2023*
overall share in industry revenue has fairly
Source: IBIS World Industry Report 2023 remained constant due to its low cost and its
inability to gain traction with rising middle-income
consumers.
3
Market Potential
Global Market Overview
700
In the developed nations consumers 590
have become more health conscious 600
which has increased appetite for
Value in Mn US$
500
processed fruits. In the developing 400
world, the expansion of middle-
300
classes has led to increased durable
180 166 162
good ownership rates. As a result, 200
88 84
economic growth and rising incomes 100 48 36 31 25
have led to expanding demand for 0
products within this segment from
the past 5 years.
Source: IBIS World Industry Report 2023
Global Fruit Productions
Country 2021 World Fruit Production (Mn MT)
(Mn MT)
China, mainland 253.89
India 107.85 900 910
889
Brazil 39.82 867
836 838 845
Turkey 25.04 823
810
Mexico 23.66 779
766
Indonesia 23.61
United States 22.87
Spain 19.03
Italy 17.19
Philippines 16.67
Source: Worldwide; FAO
Market Potential
Market Potential of India
Processed fruits and vegetable
export from India ► Exports from India have increased
from 11,374 crore in 2021 to 18, 090
19,10,84 crore in 2023, registering an increase
18,09,08
15,86,25 9
0 of ~9% y-o-y basis.
13,28,40 5 12,85,86
1 11,37,49
► Top importers from India includes
6
7 U.S.A, Netherlands, Saudi Arabia, U.K,
Iran, France etc.
► The strategic advantage of location
helps Indian exporters to export to
2020-21 2021-22 2022-23 high demand
Quantity (In MT) Value (in Rs. Lacs)
Indian Fruit Production:
► The total fruit production in India stands at 6%
All India fruit Production, growth y-o-y basis.
(Mn MT) ► India is advantageous for agro based industries as there
108108 are 127 agro-climatic zones in India.
97 98 102102
89 90 90 93
81 ► 42 planned mega food parks with a proposed
investment of US$ 1.46 Bn.
► 138 cold chains are proposed to boost cold storage
facilities and related industries.
► Food constitutes the majority of domestic expenses in
an Indian household, ranging from 38% to 50%
States % Share
Maharashtra 15%
Andhra Pradesh 12%
Gujarat 9%
Tamil Nadu 8%
Uttar Pradesh 8%
5
Growth Drivers
► Rising disposable incomes within masses
► Rapid Urbanization, Growing middle class and
Growing Domestic
emergence of high-income young professionals
Requirements
► Changing lifestyle habits towards more healthier
alternatives.
► Increased integration of Indian Economy with Global
Economy
► Proximity to key export destinations is leading the
Export Opportunities export figures of India
► Tremendous potential of growth, as the emerging
market continues to grow at much faster rate
► Favourable conditions for horticulture and
availability of wide variety of fruits and other crops
► Large amount of aid boosts food processing industry
Supply Side Advantages
► Presence of sufficient water bodies and improved
irrigation facilities help to optimizing the maximum
potential of yield
► Government launching initiatives such as
initiating/improving up quality control/Food testing
Emphasis on R&D and laboratory, R&D and promotional activity scheme.
Automation ► Under modernization/expansion of Food Processing
Industries scheme 8 food testing laboratories have
been setup in 2014-15
► Department of Agriculture, Cooperation and
Farmers Welfare (DAC&FW) has been implementing
a central sector plan scheme namely “Forecasting
Agricultural Output using Space. Agro-Meteorology
and Land Based Observations (FASAL)”. The
mandate of FASAL scheme is to generate crop
Government Support and forecast in respect of 11 crop, including Groundnut
Incentives ► Upcoming Mega food park, Agri Export Zones to
provide boost to FDI inflow onto food processing
sector
► GoG has taken initiatives for creation of rural
infrastructure such as Narmada Main Canal and
Saurashtra Branch Canal and its distribution system.
6
Gujarat - Competitive
Advantage
Availability of Raw Material
► Fruit production in Gujarat is growing at a long term CAGR of 12% y-o-y.
► Gujarat is the 3rd largest producer of fruits in India with the highest productivity of 22
MT/Ha.
► It accounts for 9% of country’s total fruit production.
1 234
Fruit bowl of the
country – high raw
material availability
Agri-marketing
infrastructure
Agriculture
development
Government
support
Gujarat is the 3rd Amendment of The state has
largest producer of Gujarat APMC Act, witnessed above
fruits in the country in 2007 made average growth rate Industries
and has the highest provisions for direct of Gross State department, Gujarat
productivity. procurement from Domestic Product government has
Majority of fields, contract (GSDP) from aggressively
production is farming etc. The Agriculture and engaged in
focused on Apples, state has Allied activities. liberalizing markets.
Banana, Sapota, approximately 400 During the period Gujarat Agro
Mango and Papaya cold storages with a 2005-06 to 2011- Industries
varieties. total capacity of 12, the national Corporation Ltd.
approximately average was ~4% (GAIC) is specific to
12.70 Lakh MT. while that for food processing
Gujarat was 5.5%
7
Gujarat - Competitive
Advantage
Fruit Production in Districts of Gujarat:
Some of the popular fruit producing pockets in Gujarat are listed below with 2013-14
production figures (in MT):
Banana Papaya Mango
District Production District Production District Production
Bharuch 10,92,634 Anand 2,12,520 Valsad 2,71,268
Anand 9,80,634 Kutch 2,12,017 Navsari 2,13,066
Baroda 6,95,247 Tapi 1,22,400 Junagadh 84,120
Surat 5,89,450 Baroda 95,750 Surat 64,400
Narmada 5,14,520 Sabarkantha 90,240 Kutch 62,415
Citrus fruits Pomegranate Chikoo
District Production District Production District Production
Mehsana 98,008 Kutch 23,310 Navsari 76,140
Bhavnagar 71,000 Banaskantha 12,920 Junagadh 46,570
Anand 68,764 Sabarkantha 12,750 Bhavnagar 39,060
Baroda 37,879 Baroda 7,110 Valsad 28,160
Kheda 31,206 Mehsana 4,730 Surat 22,210
Fruit Pockets in Gujarat
► Kutch has significant productivity of Pomegranate, Mango and Papaya
► Chikoo and Mango production is ample at Junagadh
► Availability of Pomegranate is more in Banaskantha and Sabarkantha
► In terms of availability of raw material, South Gujarat is more concentrated and various
varieties of fruits can be made available from a radius of 250 kms from any point in
South Gujrat.
Gujarat - Competitive
Advantage
Favorable consumer demographics
Gujarat, with 42.6% of its population residing in the urban areas, is
among the top three urbanized states in the country (as per Census
2011).
Ease of Doing Business
Only state to comply 100% with Environmental procedures. Gujarat
fares highly when it comes to setting up a business, allotment of land
and obtaining a construction permit.
10 Cold Chain Projects have been approved by the Ministry in Gujarat
which are being implemented under MoFPI assistance.
Availability of technical manpower
Skill development industry in the state is well-developed with many
technical institutions (786 ITI’s and 52 Skill upgradation centres).
Boost from foreign investment
The government is continuously improving infrastructure in Gujarat.
As a result, the state has been witnessing significant development,
encouraging manufacturers to invest in the state. Gujarat has
attracted cumulative FDI worth USUS$12 billion from April 2000 to
March 2015.
Flourishing Economy
Gujarat contributes 7.2% of the Nation GDP and shows leadership in
many areas of manufacturing and infrastructure sectors. Gujarat’s
SDP (State Domestic Product) at current price registered a growth of
11% during the year 2014-15.
Strategic location and excellent infrastructure
Located on the west coast of India, Gujarat is well connected to the
major cities of the world by air and sea routes.
Project Information
Location/Size
Cold storage facility
➢ Central Processing Centre: Cold storage facility of 3500
MT is available
➢ Primary Processing Centre: Cold storage facility totalling
2000MT is available
➢ For large units “pay as you use” facility is available.
Warehousing
➢ Central Processing Centre: Storage facility of 5000 MT is
available
➢ Primary Processing Centre: Storage facility totalling
5000MT is available
➢ Catchment area on "Pay as you Use" basis especially with
Automated Staking Facility is available.
QC High-Tech laboratory
➢ A High-Tech Laboratory is to be set for Units to use on
"Pay as you Use" basis.
➢ Testing Parameters - Physical - Microbiological Testing
- Chemical Testing – Pesticides Testing
Solar power backup
➢ Solar Power Generation will take care of common
maintenance of MFP
➢ Capacity of the plant : 1.2 MW
➢ This facility will be used for common facilities,
common utilities, external lighting etc.
➢ The total generation will be 18 lac units
10
Project Information
Raw Material Required
List of Description and usage Est. quantity
Equipment
Fruit Washing Reduces the initial microbial load by washing raw 1
Machine materials with chlorinated water. Water used for
washing has to be replaced at an interval of 3 to
4 hours.
Sorting or Used for cutting, inspection and sorting purpose 1
Inspection
Conveyer
Screw Feeder Used for feeding of sorted and cut fruit to fruit 1
mill. The capacity of feeding can vary from fruit
to fruit. Therefore, a slightly higher capacity
Screw Feeder of 2MT per hour is proposed.
Twin Pulper Pulper crushes fruit and fine pulp is extracted. 1
Therefore, a pulper of 3 MT per hour for fruits is
required to ensure the regular supply of pulp.
The fruit pulp passes through a sieve where stone
or waste is removed.
Steam jacketed Steam jacketed kettle is a double walled cooking 2 (375 kg each)
kettle vessel. Pulp / other products requiring
processing are heated in steam jacketed kettle at
desirable temperature to reduce microbial load.
Miscellaneous Equipment’s required such as retort, crates, As per requirement
equipment electric hoist, rotary flat, empty cans, washer &
sterilizer, working table, steam boiler, MS trolleys,
plastic barrels, knives, weighing scale, etc.
Tentative implementation schedule:
Activity Period (in months)
Application and sanction of loan 2
Site selection and commencement of civil work 1
Completion of civil work and placement of orders for machinery 4
Erection, installation and trial runs 1
11
Project Information
Man Power Required
Grade Estimated no. of people required
Plant Manager 1
Technical Manager 1
Supervisors 3
Accountant 1
Electrician 2
Peon 2
Guard 1
Total 11
Key Considerations
Volatile Prices of Raw material & Concern of Food
Security
Highly perishable nature and seasonality of fruit
crops
High cost of processing technologies due to imports
Hygiene compliances challenge
12
Project Information
Key Players
Name of the Player Key products (in fruit Location and website
processing)
Unilever Brand Kissan: jams, ketchups India
and squashes https://www.hul.co.in/brand
s/ourbrands/kissan.html
Mala’s Fruit Products Jams, crushes, mocktails, Satara,
syrups, squashes, cordials Maharashtra
http://www.malasfruit.com/i
ndex.html
Mapro Foods Pioneer of fruit-based Satara, Maharashtra
confectionery in India http://www.mapro.com/
Jams, fruit bars and chews,
syrups, crushes, squashes,
and dessert toppings
Oudh Sugar Mills Brand Morton: Canned fruits Kolkata, West Bengal
& vegetables, jams, jellies, http://www.birla-
marmalades, juices, tomato sugar.com/OurProducts/Can
products, vegetables sauces, ned-Food-FruitProducts
squashes
Vimal Agro Canned Vegetables, Fruit Pulp Surat, Gujarat
& Slices, Pickle www.vimalagro.com
13
Project Financials
Indicative project cost
Estimated project cost of setting-up a fruit processing plant for 300 MT per annum
capacity is ₹ ~185 lakhs
Estimated plant capacity - 300 MT per annum capacity with share of products considered is
60%, 20%, 10% and 10% for each canned pulp, pickle, jams and canned fruits, respectively.
(Assumption: single 8 hours shift for 250 days)
Project cost
Project components & specifications Cost (₹ lakhs)
Land (Area: 0.5 acres i.e. 2023.4 square meters) Rate: (₹3,000
60.7
per sq. mtr. as of May 2016)
Development cost (plant area, office, godown, lab, service area
5.0
etc.)
Civil work 23.1
Plant and machinery 40.2
Misc. Fixed Assets (Furniture and fixtures, office equipment,
2.0
etc.)
Preliminary and pre-operative expenses (12%) (Company
15.7
formation, interest during construction, etc.)
Contingency (10%) 14.7
Total 161.4
Margin money for working capital (15%) 24.2
Total Project cost 185.6
Utilities
Utilities Est. quantity per day
Power As per requirement
Water 1000 litres
14
Approvals & Incentives
Approvals
Approvals Prior to establishment
► Registration of concern with Registrar of Companies (ROC)
► NOC from Local Bodies like Gram Sabha/ MC etc.
► Consent to establish from State Pollution Control Board
► Approval of Layout plan for construction
► Permission from Ground Water Survey and Development Authority (GSDA)
► Registration with District Industry Centre (DIC) for as Small and Medium
Enterprise
►Application to State Electricity Board/ Authority for sanction of requisite
power load
Approvals after establishment
► Licence from FSSAI
► Permission to commence production from State Pollution Control Board
► Licence from Boiler Inspector
Incentives
PMFME Scheme - Individuals / Proprietorship / Partnership/ FPOs/ NGOs/
Cooperatives/ SHGs/ Pvt. Ltd. Co. would be provided credit-linked capital subsidy
@35% of the eligible project cost - maximum of ₹ 10.0 lakhs per unit for
upgradation or setting up of new units.
15
Approvals and Incentives
Atma Nirbhar Gujarat Schemes 2022
Capital Investment Subsidy:
➢ Eligible micro enterprises shall be given capital investment subsidy ranging
between ₹ 10 to ₹ 35 Lakhs.
Interest Subsidy:
➢ Interest subsidy ranging from 5 to 7% in case of MSMEs
➢ Large and thrust sectors interest subsidy @ 7% with an upper cap ranging
between 1 to 1.2 % of the EFCI per annum for a period of 5 to 10 years
➢ For Mega industrial units Interest subsidy @ 7% subject to maximum of 1.2%
of EFCI per annum for 10 years.
Net SGST reimbursement:
➢ For MSME in the range of 80 to 100% up to 5 to 7.5% of the EFCI per annum
for 10 years.
➢ Large and thrust sectors in the range of 80 to 100% up to 5.5 to 8.0% of
the EFCI per annum for 10 years.
➢ Mega Industrial Units @ 100% subject to maximum 0.9% of EFCI per annum
for 20 years (From the date of commencement of Commercial production).
➢ Mega Industrial Units @ 100% reimbursement of input SGST on capital
goods.
Agri and Food Processing has been identified as thrust sector in this scheme.
16
Key Department Contacts
Relevant departments and useful links
Agricultural & Processed Food National Bank for Agriculture and Rural
Products Export Development Development (NABARD)
Authority
https://mnre.gov.in www.nabard.org/
Food Safety and Standards Authority Agriculture and Co-operation
of India Department
http://www.fssai.gov.in/ www.agri.gujarat.gov.in/index.htm
Gujarat Industrial Development Industries Commissionerate
Corporation
www.gidc.gov.in/ Www.ic.gujarat.gov.in
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess
a prima facie scope. It is, however, advisable to get a detailed feasibility study prepared before
taking a final investment decision.
17
Gujarat Agro Industries Corporation Limited
Gujarat State Civil Supplies Corporation Ltd. Building, Ground Floor, Sector 10-A,
Gandhinagar.
_________________________
Phone / Fax : 079-23240208
E-mail: md.gaicl.gmail.com
Website: https://gaic.gujarat.gov.in/index.htm
Block No.18, 2nd Floor, Udyog Bhawan
GH-4, Sector 11, Gandhinagar - 382010
Gujarat, INDIA
+91-79-23256009, 23250492/93
+91-79-23250490
[email protected] www.indextb.com
