AGRICULTURAL EXPERIENTIAL LEARNING
PROGRAM-(AELP) 2018
SOIL TESTING UNIT
PROF. JAYASHANKAR
TELANGANA STATE
AGRICUTURAL UNIVERSITY
SUBMITTED BY:
N.ARVINDKUMAR
CAJA-2014-005
B.Sc.(Ag)4th yr

S,NO TOPIC
1 INTRODUCTION
2 General Information
3 Project description
Technical aspects
4 Analysis of alternate plan
5 Marketing plan
marketing strategy
6 Financial analysis
7 SWOT analysis
8 Office layout
INDEX

Introduction:
The LA TOMATINA is Sugar free ketchup is 100% sugar free and more
delicious as compared to other regular ketchup.
Why we choose this product?
We choose this product dubbed as sugar free ketchup because as the
usage of ketchup is so much now a days for people even if they are
surrounded by big diseases like diabetes, still they love to use ketchup for
good taste, without even caring of their health

 BIODATA OF ENTREPRENUER
 NAME: ARVINDKUMAR NAMBI
 QUALIFICATION: B.Sc AGRICULTURE.
 PRODUCT:
 YEAR OF ESTABLISHMENT: 2018
 NATURE OF BUSINESS: PRIVATE BUSINESS
 TYPE OF FIRM: OWNERSHIP
 MARKET COVERED: Retail shops, Super markets, BAKERIES.
 EXPERIENCE: No experience.

 TITLE : LA TOMATINA KETCHUP ENTERPRISE
 This Enterprise Is newly established and it produces and
maintains the quality of product .
 The LA TOMATINA is Sugar free ketchup is 100%
sugar free and more delicious as compared to other
regular ketchup.

CAPABILITIES:
 Good marketing and communication skills
 Risk taking ability
 Hope of success
 Creative and innovative
 Business planning and decision making
TARGET:
 Attract foodies and Sugar patients.
 To develop the taste for the people who are away from taste.

PLACEMENT:
Target:
Our company is launching Sugar Free Ketchup first time in
Telangana state that is specially for people who suffer from
diabetes our main target is DIABETIC patient and those
peoples who are fat conscious but this ketchup is used by all
kind of people whether they are diabetic or not, We all love
burgers or French fries and onion rings – you name it, ketchup
is good on everything. Unfortunately that great taste comes with
lots of calories. But our Ketchup is 100% Sugar free.

PRODUCT DESCRIPTION

Mission Statement:
To develop the taste for the people who are away from taste.
Ingredients and Properties:
Sugar free diet ketchup is the best ketchup you have ever
tasted. It is made with great tasting healthful natural
sweetener called Xylitol is a 5- carbon Sugar that is ideal
for diabetics and those concerned about sugar intake.. The
most flavourful sugar free diet product ever is our product LA
TOMATINA sugar free Ketchup.

Product Features
Calorie Free
Carbohydrate Free
Cholesterol Free
Fat free
Gluten Free
Sugar Free
Kosher Certify
Guaranteed delicious!

It is Sole proprietorship type of
business.

LOCATION AND SITE
My Enterprise is located in my home town
,NARSAPUR.
It covers the area about 2000sq.ft.
 Narsapur is the best location to establish our
enterprise because of proximity to major raw
material sources from farmers.

PHYSICAL INFRASTRUCTURE
 It includes furniture
like chairs tables and
almarahs , along with
them computers also.

RAW MATERIAL AVAILABILITY
I get the required raw material from big
farmers and my enterprise is having
contract farming with few
farmers.

 Continuously available
 Providing Training
 Reasonable wages

MAN POWER REQUIREMENT
(a) Administrative & Supervisory
 Production Manager
 Store-keeper
 Accountant
 Salesman
 Peon/Watchman
 Sweeper
(b) Technical
 Food Technologist
 Supervisor
 Foreman/Mechanic
 Skilled Worker/Boiler man
 Helper

Covered shed area 2000 sq. ft
Water per day 2000 k I
Power requirement 5 Kw.
Fuel (gas cylinders per annum) 100 nos.

POLLUTION CONTROL
 There is no major pollution problem associated
with the project. The entrepreneurs may
however, contact the concerned State Pollution
Control Board for detailed guidance in the
matter.

TRANSPOR FACILITIES
Owned trucks are available,
Well developed roads specially designed for
easy transport.

 Broachers
 Bill Boards
 Free Sample Stalls
 Print Media (news papers, magazines)
 Electronic Media (television commercial, FM radio)

Web Marketing
 Social Networking:
 Facebook
 Creating a community on face book
 Creating a Fan page on twitter
 Creating an active account on a micro-blogging site such
as twitter, where regular tweets on product and event
updates will ensure interactivity
 Followers will be encouraged to tweet their suggestions
on new flavours.

MACHINERY & EQUIPMENT
 Tomato washing tank
 Pulper /juice extractor
 Steam jacketed kettle
 Stirrer, motor etc
 Bottle washing machine
 Working tables (stainless steel)
 Baby boiler with accessories
 Working tools
 Laboratory equipment

 PRICE:
Price sometimes refers to
the quantity of payment
requested by a seller of
goods or services.
Therefore the prices of LA
TOMATINA Sugar free
ketchup are different and
kept according to their sizes.
LA TOMATINA sugar free
ketchup is available in five
different sizes.
Packing Price (Rs)
10 gm 2
150 gm 10
300 gm 30
500 gm 60
1 kg 90

Market Demand of Tomato ketchup
The demand of tomato sauce is immense in India. The demand and
the business growth is constantly increasing by 20% per annum.
Demand for tomato ketchup in the market is high because tomato
ketchup comes in different kind of uses such as:
 Used in Houses along with snacks.
 Used in restuarants for seasoning of foods.
 Used in street Fastfood centers.
 Used in salad dressing
 Used in burgers ,hotdogs , pizzas and much more.
 Used in confectionaries and bakery with snacks like rolls , cutlets
,samosas , chowmin.

Manufacturing Process
• Raw Materials Used in Tomato Ketchup Making Business:
quality tomatoes
salt,
vinegar,
spices
,garlic,
sweeteners, and flavors.
.

Pulping in Tomato ketchup Making Business:
In this stage the tomatoes are cleaned
thoroughly and sliced. The sliced tomatoes are
precooked and sent to pulping machine where the
tomatoes are chopped and juice is extracted. The
juice is filtered through screens removing all sorts of
hard particles such as seeds, skin, and even left out
tomato flesh giving pure pulp

Tomato Ketchup — Marketing
 . This Ketchup will also be
available in all Bakeries and
Restaurants like KFC,PICKUP
POINT , MC DONALDS,KS
BAKERS, DOLPHIN etc.
 Apart from this initial advertising
of product launch will create
awareness on the product.
 Print media and online media

 To bring up the proposed tomato sauce plant, a total area of
2000sq,ft:
S.No Description Sq.ft
1 Processing Area 600
2 Storeroom for Raw Material 200
3 Storeroom for finished goods 200
4 Store room for Packing Material 200
5 Laboratory 100
6 Baby boiler area 100
7 Storeroom for plant machinery spares 100
8 Administrative office 100
9 Washrooms 100
10 Miscellaneous 200
11 Total 2000

 .
Annually 60,000 kg Tomato ketchup is produced.
CAPACITY OF PLANT
QUALITY AND CONTROL TESTING
The Fruit Products Order, 1955 is mandatory for tomato
products. The tomato products should conform to
specifications laid down in FPO.
Tomato Ketchup: 25% total solids.
Acidity: 1.0%
Sodium Benzoate: 750 ppm

PROCESSING OF
TOMATO
KETCHUP
( Xylitol)
Natural sweetener

Mixing of Ingredients and Cooking
 The Exact measures of
sweeteners , mirchi powder,
vinegar, salt, flavors, and
flavorings are added to the
tomato mash. Most flavors are
included right on time in the
cooking procedure. To keep
away from over evaporation,
unpredictable zest oils and
vinegar must be blended in later.
 Salt and sugar instead artificial
sweetener Xylitol might be
included at any phase of cooking
however it is smarter to add
sweetener later to prevent
burning.

 Air Removal
The Ketchup must be free from any air bubbles to avoid staining,
discoloration and development of microscopic organisms.
• Bottle Filling
 Cooling the Ketchup Bottles
Filled up bottles of various sizes and volumes that are still hot must
be cooled to prevent from losing flavor because of stack burning. The
bottles are either passed through cooling chambers or through cold
water.
 Labeling and Packing
 Each bottle is labeled giving all product
 information on the label including the
 packing date and expiry date.

RESEARCH & DEVELOPMENT
 Research is going on value addition of flavors to attract
the foodies and diabetic patients.
 By using quality raw materials, I can maintain the
brand name of my product LA TOMATINA KETCHUP
which is sugar free.

MARKET ANALYSIS & STRATEGY
 Due to increasing
standards of living in the
cities and the rapid
urbanization taking place
in the rural areas.
 Experiments have shown
that advertisement and
publicity have influenced
the pattern of consumption
of tomato products.
Besides, tomato products
have good export
potential especially in the
Middle East

Season has no effect on our production
since the raw material is available
through out the year as I am getting raw
material by contract farming.

• Source of water is bore well located in my
enterprise.
Local resource utilization

) Land and Building Amount ( In Rs.)
Land and building (rented)
Covered area 2000 sq mt
2,00,000 @ Rs 100 Sq.
FIXED CAPITAL

STAFF AND LABOUR
S.
NO
Designation Salary (Total in Rs)
Administrative and supervisory
1 Production manager 5000 5000
2 Store-keeper 3000 3000
3 Accountant 2000 2000
4 salesman 2500 2500
5 Peon/watchman 2000 2000
6 Sweeper 1500 1500
b)Technical
1 Food technologist 5000 5000
2 Supervisor 4000 4000
3 Foreman/mechanic 3000 3000
Skilled worker/broiler man 3000 9000
4 Helper 1000 3000
Total 40,000

Description Quantity (kgs) Rate per
Kg(Rs)
Value
lakhs(Rs)
Tomatoes 1,00,000 5.00 5.00
Sugar 600 25 0.15
Spices, vinegar, salt,
onions, garlic, colors,
preservative, etc,.
1285 0.70
500 ml glass bottles 25000 nos 4.00 1.00
Carton boxes and packing
material
1000 nos 20 0.20
Total 7.05

 1)power :15 kw @8hrs=7500
 2)water 10000 lt/day=500
 3)boiler fuel=2000
 TOTAL=10,000x12
 =120000
 Other contingency expenses=35,000

Year Principle Interest Installment Balance
1 10,00,000 6,00,000 16,00,000 40,00,000
2 10,00,000 4,80,000 14,80,000 30,00,000
3 10,00,000 3,60,000 13,60,000 20,00,000
4 10,00,000 2,40,000 12,40,000 10,00,000
5 10,00,000 1,20,000 11,20,000 -----
REPAYMENT PLAN
Loan amount = 50,00,000/-
Loan repayment period = 5 years
Interest = 12%

Details
No. of working days 25 days /month
Shifts One shift per day of 8 hours
Production Capacity 500 kgs per day.
Bottled Packing 500 ml.

S.No Description Rs.
1 Tomato washing tank 10000
2 Pulper /juice extractor 75000
3 Steam jacketed kettle 75000
4 Stirrer, motor etc 75000
5 Bottle washing machine 20000
6 Working tables (stainless steel) 65000
7 Baby boiler with accessories 1,25,000
8 Working tools 1000
9 Laboratory equipment 5000
10 Total 4,55,000

Description Rs. In lakhs
Land and building 2.0
Plant Machinery and Equipment 4.55
Transport Vehicle 3.0
Cost of Electrification & Power connection 0.60
Cost of spares 0.20
Office Equipment 1.00
Contingencies 0.15
Company documentation work 0.10
Deposits if any 0.40
Gestation period expenses 0.50
Sales tax registration expenses 0.10
Working capital 14.0
Initial advertisement 10.00
Total 34.20

S.No Item Qty Rate/Unit
(Rs)
Total Rs.
lakhs
1 Tomato Ketchup 15,000 90 1,35,00,000
Conclusion: Tomato Ketchup making is an Excellent Business.

It is a priority sector and hence
subsidies are expected from the
government,
However, out of our total
investment we got 70% loan from
NABARD @ 8% interest.

S.N
O.
COSTS ITEMS IN RUPEES
1. Land and building 12,00,000
2. Equipment and machinery 4,55,000
3. Owned vehicles 3,00,000
Total fixed cost 19,55,000

S.NO PARTICULARS IN RUPEES
1. Salaries and
wages
4,80,000
2. Utilities 1,20,000
3. Transportation 30,000
4 Publicity 30,000
5. Other contingency 35,000
6. Raw material 70,50,000
TOTAL 77,45,000

 Total capital
investment = Fixed capital + working capital
= 19,55,000+77,45,000
=97,00,000

S.NO. DESCRIPTION IN
RUPEES
1. Total working capital 77,45,000
2. Interest @ 8% 2,40,000
3. Depreciation on
equipment@10%
45,500
4, Depreciation on Land
and bulding@15
30,000
Total 80,60,000
COST OF PRODUCTION

PROFIT AND
LOSS STATEMENT

S.NO PARTICULARS IN RUPEES
1. RETURNS
a) Sales 1,35,00,000
2. EXPENSES
a) Salaries and wages 4,80,000
b) Utilities 1,20,000
c) Transportation 35,000
d) Publicity 30,000
e) Other contingency 30,000
f) Raw material 70,50,000
g) Interest 2,40,000
h) Instalment 5,70,004
TOTAL 85,55,004

Profit= sales -total expenses
=1,35,00,000-85,55,004
=49,44,996
Taxes @ 20% = 9,88,999.2
Net profit after taxes= 39,55,997

BALANCE SHEET

ITEM AMOUNT
CURRENT
ASSETS
CASH IN
HAND
10,00,000
AMOUNT
RECEIVABL
E
1,35,00,000
PREPAID
EXPENSES
5,00,000
TOTAL 1,50,00,000
ITEM AMOUNT
CURRENT
LIABILITIE
S
WAGES
PAYBLE
4,80,000
INTEREST 2,40,000
TOTAL 7,20,000
ITEM AMOUNT
LONGTERM
ASSETS
LAND &
BUILDING
2,00,000
EQUIPMEN
T
4,55,000
OTHER
ASSETS
3,00,000
TOTAL 9,55,000
ITEM AMOUNT
LONGTER
M
LIABILITIE
S
LOAN
FROM
BANK
50,00,000
TOTAL 50,00,000

ITEMS AMOUNT
TOTAL ASSETS 1,59,55,000
TOTAL LIABILITY 57,20,000
NET WORTH 1,59,55,000- 57,20,000
= 1,02,35,000
TOTAL ASSETS = Total liabilities + Net worth
1,59,55,000 = 57,20,000 + 1,02,35,000

S.N
O
ITEM 1st year 2nd year 3rd year 4th year
1. Cash inflow 60,48,000 78,62,400 94,34,880 1,03,78,368
2. Out flow 19,71,460 25,62,898 30,75,447 33,82,992
3. Net cash
flow
40,68,540 52,99,502 63,59,432 69,95,376
4. Profit@
30%
12,20,562 15,89,851 19,07,829 20,98,613
5. Net profit
after taxes
28,47,978 37,09,651 44,57,603 48,96,762
6. BEP 51.6% 39.62% 33.02% 30.01%

TOTAL SALES:
Total annual production = 15000kg (15t)
Total sale = 90 x 15000
= 1,35,00,000
NET RETURNS:
Net returns = Total sales - Total cost of production
= 1,35,00,000- 80,60,000
= 54,40,000
BREAK EVEN POINT:
= [Fixed cost/(Sales-Variable cost) x 100
= (19,55,000/73,55,000) x 100
= 26.58%

 PROFITABILITY RATIO:
= (Net returns/Total sales) x 100
= 40.29%
 RETURN ON INVESTMENT:
= 1,35,00,000/97,00,000
= 1.39 Rs
1.39 rupees invested on 1 rupee.
 DEBT EQUITY RATIO:
= Debt/equity
= 50,00,000/1,02,35,000
= 0.40

 STRENGTHS:
 Rich in anti-oxidants
 Low cost of raw material
 Rich source of vitamins C,
calcium.
 Quality assurance and
control
 Ketchup is sugar free
WEAKNESS:
 Transportation of tomatoes
is a problem(perishable)
 Lack of credit support
system
SWOT ANALYSIS

OPPORTUNITIES:
 There is good scope for
market in future because it
is 100% natural product
 Favourable government
vision
 Increasing the health
consciousness
 THREATS:
 Raw material is perishable.
 In order to penetrate in and
capture the market heavy
promotional charges are
expected to be incurred.
 Competition with heavy
brands