PROJECT REPORT

Of

AMLA PROCESSING

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Amla Processing unit.

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project
identification for investment and in order to serve his objective; the document covers various aspects
of the project concept development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement. We can also prepare
project report on any subject as per your requirement.]

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 AMLA PROCESSING

1) INTRODUCTION

Phyllanthusemblica, also known as emblic or emblic myrobalan or myrobalan, Indian

gooseberry is well known over the world for its delicious fruits having rich medicinal
properties and values. Amla fruits are a very rich source of vitamin C having an ascorbic acid
content varying from 0.9% to 1.3%, the second highest among all the fruits cultivated.

2) PRODUCTS AND ITS APPLICATION:

Amla consumed as such in large quantities. The major quantity of Amala is used making
chayavanprash, ayurvedic medicines, cosmetic products and other value added products like
preserve, juice, ready-to-serve drink, sherbet, jam, fruit bar, dehydrated amla whole or
powder, mouth freshners, [Link] is generally considered as health tonic in all
respects whereas ayurvedic products like TRIFALA is used for constipation and cosmetic
products like hair oils or creams are useful for keeping hair and skin healthy respectively. The
food products as enlisted are considered healthy and source of vitamin C.

Plant Capacity & Product Mix:

The proposed project is of processing amla at the rate of 2.5 tons/hr to produce 1 ton/hr pulp
in its season, say 130 days (4 months) which can be sale directly those who are making amla
pulp based products and the promoter can also store and then processed the same pulp in
other value added amla products like amla drink in remaining 170 days of the year.

3) DESIRED QUALIFICATION FOR PROMOTER:

The promoter must be well versed with processes for value added amla products, amla
growing regions, seasons, etc. as well able to markets the same in India and abroad. Also, able
to produce the end products of desired end use application.

4) INDUSTRY OUTLOOK/TREND

The market for herbal products and natural sources for vitamins and minerals are increasingly
in demand due to health benefits. This trend is likely to continue on domestic and export front.
Amla is having very high content of naturally available ascorbic acid (vitamin C) and therefore
products of amla such as powder, juice;pulp, sugar coated products etc. are growing very fast
in the market.
5) MARKET POTENTIAL AND MARKETING ISSUES, IF ANY:

Amla extract (ingredients) are useful in various food and beverage applications such as
nutritional bars, cereals, jams, powder drink mixes, yogurts and dietary supplements. The
potential for amla extract as a food ingredient is increasing substantially, owing to the growing
global nutraceuticals and functional food market. Amla extract also provides broad spectrum
skin protection against heavy metals due to its anti-oxidant properties. Thus, the market for
amla extract is expected to grow at a healthy CAGR throughout the next decade.

India exports a significant amount of amla and amla extracts to countries like the U.S., Japan,
Nepal, Bangladesh, Malaysia, Germany and the Netherlands. Various herbal medicine
manufacturing companies are usingamla extracts to provide novel dietary supplements in
herbal tea and powders forms. Effective production, processing and marketing of amla extracts
is expected to boost the market size during the next decade. The major players are:Biomax,
Taiyo international (Sun Amla), Arjuna Natural Extracts Ltd., Nutra Genesis and Archer chem.;
etc.
At present amla processing activity is mainly concentrated in the state of U.P, Gujarat,
Maharashtra and southern states. Most of the facilities are in the unorganized sector. Hence
there is good scope for medium scale well organized processing facilities to maintain quality
parameters required by large companies and importers.

6) RAW MATERIAL REQUIREMENTS:

India produces about 15 Lakh tons of Amla in 1 Lakh hectre. The leading amla producing states
are: Uttar Pradesh, Madhya Pradesh, Tamil Nadu and Gujarat, other states also growing amla
are: Andhra Pradesh, Chahattisgarh, Jharkhand and Haryana. The key Amla growing belts in
leading states are as under:

States Districts
Uttar Pradesh Pratapgarh, Rai Bareli, Varanasi, Jaunpur, Sultanpur,Fatehpur, Kanpur, Agra and
Mathura
Madhya Pradesh Dewas, Hoshangabad, Shivani, Rewa, Satna, Tikamgarh, Betual, Chindwara,
Shivapurkala, Panna, etc.
Tamil Nadu: Tirunelveli, Thoothukudi, Sivagangai, Coimbatore, Salem &Dindugal
Gujarat: Kheda, Anand, Sabarkantha, Banaskantha, Mehsana, Ahmedabad, etc.

There are three main varieties of amla viz., Banarasi, Francis (Hathijhool) and Chakaiya. Other
varieties identified and released for commercial cultivation during the recent years are:
Kanchan (NA4), NA6 and [Link] above varieties, Anand 1, Anand 2 and Anand 3 have
been selected as promising strains at the Gujarat Agricultural University
 Amla yields approx. 40% juice having 10° brix for making any further value added product.
One has to calculate the requirements of raw materials accordingly depending on quantity of
end product to be manufactured. The peak season for amla is from October to January. Here, it
is proposed to produce 2.5 tons/hr fresh amla to produce 1 ton/hr pulp at every hour as peak
season is just four months. One can keep in cold storage after January for other 2-3 months.

7) MANUFACTURING PROCESS:

Sound mature amla fruits are wash thoroughly under turbulent washing to remove dirt, dust
and adhered unwanted material. Thus cleaned and washed amla are subject to cutting in a
specialized machine, followed by pulping with filtration, standardizing and pasteurizing for
storage or otherwise can be used for making other value added food products either by boiling
the pulp or sometime direct cooking of amla fruits (no pulping) for making products like amla
preserve, candy, pickle or mouth freshener. The pulp or extract can be used in making
chayavanprash, juices, ready-to-serve beverages, fruit bar, amla sauce, cosmetic products, etc.

8) MANPOWER REQUIREMENT:

[Link]. Designation No. Salary(Rs.) Total (In. Rs.)

1 Manager 1 Self -
2 Administrative staff 2 12,000.00 24,000.00
4 Skilled 7 10,000.00 70,000.00
5 Unskilled/labor 25 7,000.00 175000.00
2,69,000.00
Total 2,69,000.00
Total Annual Salary 35 4 months 10,76,000.00
10.76

9) COST OF PROJECT:

[Link]. PARTICULARS TOTAL COST MARGIN 25% LOAN

1 Land & Building 0.00 0.00 0.00
2 Plant and Machinery 44.95 11.24 33.71
3 Furniture & Fixture 0.75 0.19 0.56
4 Contingencies 0.90 0.90 -
6 Margin for Working Capital 5.56 5.56 -
Total 52.16 17.89 34.27
10) MEANS OF FINANCE:
[Link]. PARTICULARS AMOUNT
Own Capital 17.89
1
2 Term Loan 34.27
Total 52.16
11) WORKING CAPITAL CALCULATION:
Rs in lac
1 Salary and Wages 10.76
2 Raw Material 510.00
3 Utilities 1.43
Other selling and administrative
4 Expenses 17.78
Total 539.97
Working Capital for 3 months Rs in Lakhs 134.99
12) LIST OF MACHINERY REQUIRED:
Qty.
[Link]. Description nos. Price/unit Amount (In Rs.)
1 Fruit & Vegetable Washer: 5 ton/hr 1 7,50,000.00 7,50,000.00
2 Amla Shredding Machine 2 2,00,000.00 4,00,000.00
3 Amla Juicer 2 8,00,000.00 16,00,000.00
4 Standardization Tanks 500 lit each 2 15,000.00 30,000.00
5 Pasteurizer 1 12,50,000.00 12,50,000.00
6 Holding Tank 2 15,000.00 30,000.00

7 Steam Jacketed Kettles: 500 lit 2 1,35,000.00 2,70,000.00

8 Canning Machinery 1 1,65,000.00 1,65,000.00
44,95,000.00
13) PROFITABILITY CALCULATIONS:

TOTAL COST OF PRODUCTION

[Link]. Particulars In. Rs.
1 Total Recurring Expenditure 539.97
2 Depreciation on Plant and Machinery @ 15% 6.74
Depreciation of Furniture/Fixture & Office Equipment @
3 10 % 0.08
4 Finance Cost 12% 16.34
563.13

TOTAL TURNOVER

Particulars Qty Rate per

[Link]. (Tonne ) tonne (in Rs) In. Rs.
1 Amla Pulp 1000 62,000.00 6,20,00,000.00
TOTAL TURNOVER 6,20,00,000.00
(In Lacs) 620.00

(In Lacs)
PROFIT
(Turn over -Cost of Production ) (620.00-563.13) 56.87

At 100% capacity utilisation

Percentage profit on sales 9.17%

The proposed unit will have the production capacity of 1000 MT of Amla pulp per year. The unit cost
of power is taken at Rs. 8. The depreciation on building is taken at the rate of 15% on Plant and
machinery and 10% on Furniture and Fixture.

The sales price of Amla pulp is taken at the rate of Rs.62000/- per MT on an average for proposed
project.

14) STATUTORY/ GOVERNMENT APPROVALS

There is statutory requirement of FSSAI license for setting up of amla processing industry.
Moreover, MSME& GST registration, IEC Code for Export of end products and local authority
clearance may be required for Shops and Establishment, for Fire and Safety requirement and
registration for ESI, PF and Labour laws may be required if applicable. Entrepreneur may contact
State Pollution Control Board where ever it is applicable.
15) BACKWARD AND FORWARD INTEGRATION

Promoter may think of having their own amla plantation particularly for organic products.
Similarly for forward integration more products of amla and similar fruits may be added to serve
the needs of the clients.

16) TRAINING CENTERS/COURSES

For food processing industry training and short term courses are available at Indian Institute of
Food Processing Technology, Thanjavur, Tamil Nadu and Central Food Technological Institute,
Mysore.
We can also be accessed for handholding services viz. application filling / project report
preparation, EDP, financial Training, Skill Development, mentoring etc.
 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN assume no
financial liability to anyone using the content for any purpose. All the materials and content
contained in Project report is for educational purpose and reflect the views of the industry
which are drawn from various research material sources from internet, experts, suppliers and
various other sources. The actual cost of the project or industry will have to be taken on case
to case basis considering specific requirement of the project, capacity and type of plant and
other specific factors/cost directly related to the implementation of project. It is intended for
general guidance only and must not be considered a substitute for a competent legal advice
provided by a licensed industry professional. SAMADHAN hereby disclaims any and all
liability to any party for any direct, indirect, implied, punitive, special, incidental or other
consequential damages arising directly or indirectly from any use of the Project Report
Content, which is provided as is, and without warranties.