E.D.P PROJECTManufacturing of Fish /Prawn Pickle Introduction :-Fish or Prawns have very limited shelf life and they need to be processed immediately to preserve them for a longer period. Making pickle is made properly under hygienic conditions adding requisite quantity of salt, spices and preservatives would have shelf have shelf life of around 8 to 10 month. Pickles can be made in any part of the country. This note concentrates on the North East region as It has ample varieties of fish and non-vegetarian food is fairly popular in most of the states. Manufacturing process is not very complicated and the capital investment is not much. Hence a new entrant would not find it difficult to venture into this product line. Pickling is also known as brining or corning, is the process of preserving food by anaerobic fermentation in bring to produce lactic acid, or marinating and strong it an acid solution, usually vinegar (acetic acids). The resulting food is called a pickle. This procedure gives the food a salty or sour taste. In south Asia, Edible oil is used as the pickling medium with vinegar.

Another distinguish characteristic is a PH less than 4.6 which is sufficient to kill most bacteria. Pickling can preserve perishable foods for months. Antimicrobial herbs & spices, such as mustarded seed, garlic, cinnamon or cloves, are often added. If the food contains sufficient moisture pickling brine may be produced by simply adding dry salt. For example, saverkraout and Karean Kinchi are produced by salting the vegetables to draw out excess water. Natural fermentation at room temperature, by lactic acid bacteria, produces the required acidity. Other pickles are made by placing vegetables in vinegar unlike the canning process; Pickling does not required that the food be completely sterile before it is sealed. The acidity or salinity of the salt. The temperature of fermentation and the exclusion of oxygen determine which micro-organisms dominate and determine the flowers of the end product. When both salt concentration & temperature are law , Leuconostoc mesenteries dominates, producing a mix acids, alcohol & aroma compounds at higher temperature lactobacillus platinum dominates which produces primarily acid i.e. lactic acid. Many pickle start with leuconastoc, and change to Lactobacillus with higher acidity. Like any other vegetable or fruit, fish pickle is also table enriches and is becoming popular amongst non- vegetarians. With additional of salt, spices & preservatives its shelf like is generally 8 to 10 months. Certification under the PFA Act is mandatory. (1954)

Market Outline :-

Pickles have become an important ingredient of the Indian diet and they are prepared from fruits & vegetables across the country. They are table enriches and are consumed along with main course as well as many snacks. Pickle made from fish or prawn would also fall in the same category but its consumption would be limited only to non-vegetarian. The defense purchase department of the government of India also requires a sizeable quantity of processed fish product for supplying to the various departments canteens and offices mess Establishment. There is a good demand for fish / Prawns pickle in foreign countries also.

Basis and Presumptions :-

1. No. of shifts working -Two (Morning, Afternoon)2. No. of days working in a year-300 days3. Margin money -30 %4. labour and wages -As per the prevailing rates in the area

Marketing Strategy :-

There are very few notional brands and bulk of the market is controlled by the local manufactures. Demands for ready to sewe fish products are increasing in the North-East. Apart from individual households, hostels, restaurants, roadside eateries, canteens, etc. are bulk consumers... Proper placement of products, attractive point of sale publicity and handsome commission to retailers shall be the critical aspects.

Manufacturing Process :-

Fresh prawns are peeled are washed and then blenched in 6 % salt solution containing 0.02% citric acid at cooled cleaned fresh garlic and green chilies are cut longitudinally where as fresh lemons are cut into 8-10 pieces. Asafetida is ground and mixed with water or vinegar. Then edible oil is heated to around 200o c and mustard is fried into it subsequently, garlic, green chilies & lemon pieces are mixed with oil one after another and are stirred. Then salt ginger pieces and asafetida solution is mixed. Finally vinegar is added and when there is a separation of liquid portion blanched prawns and mixed well. After heating the mixture at 100o c for about 3 minutes it is cooled down to around 60o and then preservatives are mixed with salt, chili powder and turmeric for about & hours. Then pieces are fried in edible oil till they are brown in colour. Likewise, onion, garlic and ginger is ground in paste form and then fried till it becomes light brown. Then vinegar is added along with salt, chili & turmeric powder to the mixture and it is heated till vinegar is absorbed in fish. Then it is cooled and ground spices and preservative are mixed and fish pickle is packed in air tight bottles. Weight loss on cleaning in air tight bottles weight loss on cleaning etc. shall be 50-55% which will be, to some extent, compensated by addition of other ingredients. Hence, net yield would be 65%.

Financial Analysis :-

1. Land and Building Sr. No.ParticularAmount

1.Land (100 Sq.fts)10,00,000

2.Building 5,00,000

Total 15,00,000

2. Equipments :Sr. NoParticularsRatesQuantityAmount

1Fermentation container 50,00031,50,000

2Plastic buckets200204000

3Clay fermenting crocks400208000

4Weights 200204000

5Glass Jars300206000

6Packing Machine 3,00,00013,00,000

7Bottle washing machine2500001250000

8SS knives300154500

7,26,500

Other Fixed Assets :-Sr. No Particulars Qty Rates Amount

1Furniture -2000020000

2Electric items -1000010000

3Computer23000060000

4Telephone2200400

5Generator16000060000

Total 150400

Raw Material :-Sr. No.ParticularQty. daily (kg/lit)Qty. Monthly (kg/lit)Rate (Rs.)Monthly (Rs.)Yearly (Rs.)

1Fish fillet 50 kg 1500 kg1200180000021600000

2Onion 75 kg2250 kg1022500270000

3Garlic10 kg300 kg20600072000

4Ginger5 kg150 kg40600072000

5Green Chilies 1.5 kg 45 kg40180021600

6Turmeric25 gm750 gms 1601201440

7Pepper powder 50gm1.5 kg4506758100

8Chili powder 75 gms2.25 kg200450540

9Coriander Powder150gms4.5 kgms803604320

10Fenugreek powder 25 gms750 gms120901080

11White wine vinegar50 lit1.5 lits 1502252700

12Salt 2 kg60kg106007200

13Edible oil10 lits.300 lits.90 27000324000

Total 2,23,8,9840

Legal Aspects :-Permission from M.I.D.C Pimpri Chinchwad & Mahanagar Palika.

Utility :-Sr. No.ParticularAmount (Monthly)Amount (Yearly)

1Water300036000

2Electricity 400048000

3Telephone100012000

96000

Working Capital :-

a) Project annual sale :-=100 kg daily250gm = 40bottles 1kg = 30 Bottle 5kg = 10 bottles 500 gms 20 bottle 2502 gms = 250 Rs 1kg = 950Rs. 5kg =4750Rs. 500 gm = 500Rs. 10,000 +28,500 + 47,500+10,000

Total amt. daily =96000(daily)Total amt. monthly=2880000(monthly)Total amt. yearly=34560000(yearly).

Gross working capital PAS =34560000Gross working capital =34560000=8640000 Rs.

1/5 of gross working capital =8640000 5

Net working capital =1728000 Rs.

Project Cost :-

Sr. No.ParticularAmount (Rs.)

1Land & Building 1500000

2Plant & Machinery 726500

3Other Assets 150400

4Preliminary pre-operation expenses. 125000

5Margi nary expenses (Margin Money)1728000

6Contingencies expenses 30000

4259900

Means of Finance :-

Sr. No.ParticularAmount (Rs.)

1Promoters Contribution 1703960

2Term Loan2555940

Total 4259900

Man Power Required :-

Sr. No.ParticularNo.Monthly salaryAmt. yearly salary

1Accountant 1400048000

2Cook214000168000

3Store Manager 1400048000

4H.K39000108000

5Security240048000

4,20,000

Production Profitability :-

Sales per Annum=34560000/- Cost of production=22920840/-

Sr. NoParticularAmount

1Raw Material 22389840

2Utility96000

3Rent -

4Salary420000

5Overhead exp.5000

6Consumable and packing 10000

22920840

Profit Before Tax :-

a) Depreciation Tax (A - B) = 34560000-22920840=11639160 Rs.

b) Profit =Interest + Depreciation =334087+332766=666853=11639160 666853=10972307Net Profit =10972307 3620861=7351445

Net Profit =7351445/-

Trading Account :-ParticularAmountParticularAmount

To, Purchase 22389840By sales34560000

To utilities96000By closing stock 100000

To overheads 5000

To consumable & packing 10000

To, gross profit 12159160

Total 3466000034660000

Profit & loss Account ParticularAmountParticularAmount

To, salary 420000By gross profit12159160

To, depreciation

Land & building 150000

Plant & Machinery 72650

Other fixed assets 15040

To interest 334087

To pre-operating expenses 125000

To net profit7351445

To, contingencies expenses. 30000

To, advertisement 3660938

Total 1215916012159160

Balance Sheet :-LiabilitiesAmountAmountAssetsAmountAmount

Capital 1703960

(+) net profit7351445Land & building 1500000

9055405(-) dep.1500001350000

Bank Loan 2555940

(-) Principle 713667Plant & machinery 726500

1842273(-) dep.72650653850

Other fixed 150400

Assets

(-) dep.15040135360

Debtors1000000

Cash in hand 3000000

Bills receivable758468

Cash in bank 4000000

Total 1089767810897678

Trading Account ParticularAmountParticularAmount

To, opening stock 100000By sales41472000

To, Purchase22389840By closing stock 150000

To Utility96000

To, Overhead 5000

To, consumable & packing 10000

To gross profit 19021160

4,16,22,0004,16,22,000

Profit and Loss Account ParticularAmountParticularAmount

To, salary 420000By gross profit 19021160

To Depreciation

Land & Building 135000

Plant & Machinery65385

Other fixed assets 13536

To interest 334087

To, pre-operating expenses 125000

To contingencies exp.30000

To advertisement 10546707

To net profit 7351445

1,90,21,1601,90,21,160

Balance Sheet LiabilitiesAmountAmountAssetsAmountAmount

Capital 9055405Land & building 1350000

(+) net profit7351445(-) dep.1350001215000

16406850

Bank loans1842273Plant & machinery653850

(-) principle 713667(-) dep.65385588465

1128606

Creditors 50000Other fixed assets 135360

(-) dep.13536121824

Debtors5560167

Bills receivable 1000000

Closing stock100000

Cash in hand 2000000

Cash in bank7000000

Total 1,75,85,4561,75,85,456

Trading Account

ParticularAmountParticularAmount

To opening stock 150000By sales 49766400

To purchase 22389840By closing stock50000

To utility 96000

To overhead 5000

To consumable & packing 10000

To, gross profit 27165560

Total 4981640049816400

Profit & loss Account

ParticularAmountParticularAmount

To salary 420000By gross profit27165560

To depreciation

Land & building 121500

Plant & machinery 58846

Other fixed assets12182

To interest 334087

To, pre-operating exps. 125000

To, net profit 7351445

To, contingencies exp.30000

To, advertisement 18712500

Total 2716556027165560

Balance Sheet :-

LiabilitiesAmountAmountAssetsAmountAmount

Capital 16906850Land building (-) dep. 1215000

(-)net profit7351445(-) dep.1215001093500

23758295

Bank loan 1128606Plant & machinery 588465

(-) principle 713667(-) dep. 58845529619

414939

Creditors 50000Other fixed 121824

Assets12182109642

(-) dep.

Debtors3000000

Bills receivable 2340473

Closing stock150000

Cash in hand2000000

Cash in hand15000000

Total 2422323424223234