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CASHEW APPLE PROCESSING
(Tiny scale for Women SHG)
1. Introduction
Cashew apple is a fruit that is normally used for brewing alcoholic
beverages after separation of the nut. However, it can be processed to produce
titbits in sugar syrup, jams and pulp in honey. The project aims to produce
cashew apple bits in sugar syrup, cashew apple jam, and pulp in honey on a
small scale.
2. Market
The major market outlets are the “ A” and “B” class stores. The product
also finds placement in self service counters and departmental stores.
3. Packaging
Cashew apple products are packed in weights of 200 grams, 400 grams
and 500 grams and multiples thereof.
4. Production capacity
• The plant will be in operation for one shift a day.
• It would process cashew apples to produce 500 kilograms of the final product
with the following product mix.
a) Cashew apple in sugar syrup - 200 kilograms
b) Cashew apple jam - 200 kilograms
c) Cashew apple pulp in honey -100 kilograms
• The total quantity of products produced per month and annum are as follows:
Total production in kgs per
(month) (annum)
I. Cashew apple in sugar syrup 5000 60000
II. Cashew apple jam 5000 60000
III. Cashew apple pulp in honey 2500 30000
• Total 12500 150000
• The time period required for achieving full capacity utilization is one year.
5. Sales revenue
• With an ex-factory selling price at Rs. 60 per bottle of 500 grams of each
variety, or Rs. 120 per kilogram, the total sales realisation will be Rs. 180
lakhs on full capacity utilization.
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6. Production process outline.
The cashew apple received from farms must first be immediately stored
under refrigerated conditions failing which they would wilt. From the storage
chamber, they are taken for processing as and when required.
Three types of products are proposed to be produced and they include:
• Cashew apple in sugar syrup
• Cashew apple jam
• Cashew apple in honey
Cashew apple in sugar syrup
The fruit is washed, cut into cubes and kept separately. In the kettle,
sugar is converted into syrup and boiled to around 75 degrees brix. The cubes
are added to the sugar syrup and boiled for a few minutes. The syrup is cooled
and then transferred into bottles. Each bottle of 500 grams will contain 250
grams of cashew apples In 250 ml of sugar syrup. Necessary preservatives and
colours are added in the kettle at the time of cooking.
Cashew apple jam
The cashew apple after washing is passed through the pulper when the
pulp and juice are extracted. The extracted mass is taken to the kettle where it is
cooked under the influence of jacketed steam for ten minutes.
Sugar is then added in desired quantities and the mass further cooked
with constant stirring till a thick mass is formed with a reading of 65 to 70
degrees brix on the brix meter. After cooking, the required quantities of citric
acid, pectin, flavours and colours are added and the mass stirred thoroughly.
The mass after mixing is emptied into steel containers from where they are
poured into bottles of 400 grams capacity. On cooling the jam sets. The bottle is
capped after placing a foil paper at its top. The bottles are placed in cartons,
strapped and dispatched.
Cashew apple in honey
The cashew apple after washing is passed through the pulper when the
pulp and juice are extracted. The extracted mass is taken to the kettle where it is
cooked under jacketed steam to form a thick mass and almost all the water has
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evaporated. The steam is switched off and the mass cooled. Honey is then
added to the desired extent and the contents mixed till a homogenous mass is
formed. Finally the desired quantities of powdered cardamom and preservatives
are added, stirred and the final product packed.
7. Quality specifications
Cashew apple in sugar syrup
• The minimum fruit content shall be 45%.
• Mold and fungal growth should be absent.
• The product should be prepared under hygienic conditions and should be
free from coliforms, salmonella, and streptococci species of bacteria.
• It shall be free from fermented odour.
• No artificial sweetening agents are to be used. Only sugar, dextrose, liquid
glucose can be used either singly or in combination.
Cashew apple jam
• The minimum fruit content shall be 55%.
• Mold and fungal growth should be absent.
• The product should be prepared under hygienic conditions and should be
free from coliforms, salmonella, and streptococci species of bacteria.
• It shall be free from fermented odour.
• No artificial sweetening agents are to be used. Only sugar, dextrose, liquid
glucose can be used either singly or in combination.
• It can contain pectin derived from any fruit.
• It can also contain permitted preservatives, colours and emulsifying and
stabilising agents.
8. Pollution control measures
Not necessary as there are no pollutants or effluents. However waste
residues obtained after pulping have to be disposed off carefully failing which it
could pollute the surrounding area on fermentation, thereby yielding a foul odour.
9. Energy conservation measures
Common measures will do.
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10. Land and construction cost for the proposed unit
The proposed unit is to be set up in a leased area. The total area required
is 1800 square feet as described below:
Sl Description Sq. feet
1 Processing area 500
2 Raw material store 200
3 Washing area 200
4 Packing material store room 100
5 Finished goods store room 200
6 Laboratory space 100
7 Machinery spares room 100
8 Administrative office 100
9 Toilet space 200
10 Miscellaneous space 100
11 Total 1800
Lease rentals – Rs. 6.00 per square foot
Total rent per month – Rs. 10800
Lease advance – Rs. 75000
11. Costing of machinery and equipment
Sl Description Rs. lakhs
1 Fruit washing tank 0.047
2 Super pulper 0.353
3 Autoclave 0.330
4 Steam jacketed cooking kettle 0.373
5 Stainless steel stirrer 0.121
6 Bottle washing machine 0.206
7 Working tools 0.100
8 Baby boiler and accessories 1.250
9 Water softener 0.500
10 Stainless steel working tables 0.600
11 Gumming machine 0.060
12 Total 3.940
13 Laboratory equipment 0.500
14 Grand total machinery and equipment 4.440
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12. Project cost
Sl Description Rs. lakhs
1 Land On lease
2 Civil works On lease
3 Plant machinery 3.940
4 Laboratory equipment 0.600
5 Transport vehicle (1 Tata Ace) 3.600
6 Pollution control equipment 0.000
7 Energy conservation equipment 0.000
8 Cost of power connection 0.100
9 Cost of electrification 0.100
10 Erection and commissioning 0.400
11 Cost of machinery spares 0.050
12 Cost of office equipment 1.000
13 Deposits if any 0.360
14 Company formation expenses 0.100
15 Gestation period expenses 0.500
16 Sales tax registration expenses 0.100
17 Initial advertisement and publicity 5.000
18 Contingencies 0.500
19 Working capital margin money 5.080
20 Total 21.430
13. Working capital requirements per month
a. Salaries and wages
Sl Description No of Total
persons salary /
month
(Rs. lakhs)
1 Production Supervisor 1 0.150
2 Chemist 1 0.100
3 Skilled workers 2 0.120
4 Unskilled workers 4 0.120
5 Packing workers 2 0.060
6 Van driver 1 0.060
7 Administrative staff 1 0.060
8 Total 12 0.670
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b. Raw material requirement per month
Sl Description Qty Rate / kg Value
(kgs) (Rs) (Rs. lakhs)
1 Cashew apple in sugar syrup
A Cashew apple 7500 3.00 0.225
B Sugar 3200 27.00 0.864
C Citric acid, flavours, 150 150.00 0.225
preservatives
D Total 10850 1.314
2 Cashew apple jam
A Cashew apple 13200 3.00 0.396
B Sugar 2200 27.00 0.594
C Citric acid, flavours, 150 150.00 0.225
preservatives
D Total 15550 1.215
3 Cashew apple pulp in honey
A Cashew apple 7000 3.00 0.210
B Sugar 800 27.00 0.216
C Honey 1250 120.00 1.500
D Flavours, preservatives 75 150.00 0.113
E Total 9125 2.039
4 Grand Total Raw Material 35525 4.568
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c. Packaging material requirement per month
Sl Description Qty Rate / unit Value
(Rs) (Rs. lakhs)
1 Cashew apple in sugar syrup
A Glass bottles 10200 nos 8.00 0.816
B Cartons and straps 1000 nos 50.00 0.500
C Total 1.316
2 Cashew apple jam
A Glass bottles 10200 nos 8.00 0.816
B Cartons and straps 1000 nos 50.00 0.500
C Total 1.316
3 Cashew apple pulp in honey
A Glass bottles 5100 nos 8.00 0.408
B Cartons and straps 1300 nos 50.00 0.650
C Total 1.058
4 Grand Total Packaging 3.690
Material
Grand total Raw + Packaging Material - Rs. 8.258 lakhs
d. Utilities per month
Sl Description Rs. lakhs
1 Power 750 kwh @ Rs. 5.50 per unit 0.041
2 Water 0.050
3 Boiler fuel 0.100
4 Total utilities 0.191
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e. Contingent expenses per month
Sl Description Rs. lakhs
1 Rent for processing shed 0.108
2 Postage and stationery 0.010
3 Telephones, fax etc. 0.050
4 Consumable stores 0.020
5 Repairs and maintenance 0.036
6 Local transports, loading and unloading 0.100
7 Advertisement and publicity @10% of sales 1.800
8 Insurance 0.018
9 Sales expenses @ 1% of sales 0.180
10 Miscellaneous expenses @ 1% of sales 0.180
11 Trade incentives @ 2% of sales 0.360
12 Taxes @ 4% 0.720
13 Total contingent expenses 3.582
f. Total working capital requirement per month
Sl Description Rs. lakhs
1 Salaries and wages 0.670
2 Raw material and packaging material 8.258
3 Utilities 0.191
4 Contingent expenses 3.582
5 Total 12.701
14. Means of finance
Sl Description Rs. lakhs
1 Total Project Cost 21.430
2 Equity 7.072
3 Debt 14.358
4 Working capital margin money 5.080
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15. Financial analysis
Sl Description Rs. lakhs
1 Total recurring cost per year 152.412
2 Depreciation on land and building 0.000
3 Depreciation on machinery and vehicle 0.810
4 Depreciation on furnaces 0.000
5 Depreciation on moulds and fixtures 0.010
6 Depreciation on office equipment 0.100
7 Interest on long term loan @ 13.5% 1.938
8 Interest on short term borrowings@ 13.5% 1.029
9 Total cost of production 156.299
16. Turnover per year
Sl Item Qty Rate/unit Total
(Rs) Rs. lakhs
1 Cashew apple tidbits 60000 kgs 120.00 72.00
2 Cashew apple jam 60000 kgs 120.00 72.00
3 Cashew apple pulp in 30000 kgs 120.00 36.00
honey
4 Total 150000 kgs 180.00
17. Viability analysis
Sl Description Value
1 Net profit before income tax (Rs. lakhs) 23.701
2 Net profit ratio 13.1%
3 Internal rate of return 33.6%
4 Break even percentage 33%
5 Debt service coverage ratio 2.234
List of machinery suppliers
1. Geeta Food Engineering, Plot No. C - 7 / 1, TTC Industrial Area, Pawana MIDC,
Thane - Belapur Road, Behind Savita Chemicals, Navi Mumbai 400705.
Maharashtra.; Tel: 022 - 56101973; Fax: 022 – 55906450
2. Royal Scientific Industries, T.S.74A, SIDCO Industrial Estate, Ekkatuthangal,
Chennai. 600097., Tel: 044-22254749
3. Navinchandra and Co., 308, Thambu Chetty Street, Chennai. 600001; Tel: 044-
25228675
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