PROJECT REPORT
Of
BANANA RIPENING
PURPOSE OF THE DOCUMENT
This particular pre-feasibility is regarding Banana Ripening.
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.
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BANANA RIPENING
What is Fruit Ripening?
Ripening is a process in fruits that causes them to become
edible. The fruit becomes sweeter, less green and softer
Ripening is associated with change in composition i.e.
conversion of starch to sugar
BANANA RIPENING
What is Fruit Ripening?
However, all fruits do not ripen in the same manner
On the basis of their ripening behaviour, fruits are
classified as:
-Climacteric Fruits
-Non-Climacteric Fruits
BANANA RIPENING
Climacteric Fruits
are defined as fruits that enter ‘climacteric phase’ after
harvest i.e. they continue to ripen off the tree / plant
most ripened climacteric fruits are too soft and delicate to
withstand rigours of transport and repeated handling
these are harvested hard and green, but fully mature
ripening is done near the consumption areas
(we will return to how this is done later…)
BANANA RIPENING
Climacteric Fruits
Examples:
Mango Banana Papaya
Guava Sapota Kiwi
Fig Apple Passion fruit
Apricot Plum Pear
BANANA RIPENING
Non-Climacteric Fruits
These fruits, once harvested, do not ripen further
Examples:
Orange Mousambi Kinnow
Grapefruit Grapes Pomegranate
Litchi Watermelon Cherry
Raspberry Blackberry Strawberry
BANANA RIPENING
Ripening of Climacteric Fruits
Now, we return to ripening of Climacteric Fruits
We have seen that these fruits need to be ripened, post
harvest, preferably near consumption areas
Traditionally, this has been done with the help of
chemicals such as Calcium Carbide
BANANA RIPENING
Conventional Ripening Method
Calcium Carbide used is industrial grade, used in
welding applications.
This is known to contain traces of arsenic and
phosphorus ..…these are toxic and may be hazardous to
health.
Calcium Carbide reacts with moisture in the air to
produce acetylene gas. Acetylene gas acts as a
ripening agent ….but is believed to affect the nervous
system by reducing supply of oxygen to the brain
BANANA RIPENING
Conventional Ripening Method
Use of Calcium Carbide is banned under Rule 44-AA of
PoFA (Prevention of Food Adulteration) Rules, 1955.
Almost all ripening (more than 99%) in India is done with
Calcium Carbide.
BANANA RIPENING
Ripening with Ethylene
The only scientific and safe ripening method accepted
worldwide is the use of Ethylene
Ethylene is a natural plant hormone that the fruit itself emits
as it ripens
Exposure of unripe fruit to a miniscule dose of ethylene is
sufficient to stimulate the natural ripening process until the
fruit itself starts producing ethylene in large quantities
BANANA RIPENING
Ripening with Ethylene
The process is essentially same for all climacteric fruits
The conditions - ethylene concentration, temperature and
humidity, vary from fruit to fruit
As an example, let us look at ripening process for
bananas
BANANA RIPENING
Ripening of Bananas with Ethylene
For optimum quality, flavor, color and texture it is
essential that bananas are harvested green, but fully
mature, with little or no angularity
The quality of the ripe bananas depends on maturity at
harvest, the care and speed in handling, avoidance of
chilling injuries, and ripening under optimum conditions
BANANA RIPENING
Banana Color Chart
BANANA RIPENING
Banana Color Chart
1. evenly green; common color after harvesting
2. light green; color of bananas treated by gas
3. more green than yellow; ready for wholesale supply
4. more yellow than green; recommended for retail outlets
5. ideal color for sale
6. fully ripe bananas ready for consumption
7. over ripe fungus effected banana
BANANA RIPENING
Ripening of Bananas with Ethylene
Bananas are received at the ripening plant at color stage
1 (refer color chart above)
The product is pre-cooled to the pulp temperature of 18ºC
After stabilization of temperature, ethylene is introduced
at a concentration of 100 – 150 ppm
Most convenient and safe method of introducing ethylene
is through ethylene generators
Cylinders containing 5% mixture of ethylene gas with
nitrogen may also be used
BANANA RIPENING
Ripening of Bananas with Ethylene
After 24 hours, the chambers are vented. During this
period the fruit starts producing ethylene by itself at the
rate of 2 - 4 µl / kg·hr
Ripening associated changes include an increase in rate
of respiration from 20 to 60 - 80 ml CO2 / kg·hr and a
similar 3 to 4 fold increase in heat production
The product breathes in oxygen and gives off carbon
dioxide
Excess ethylene and carbon dioxide must be removed
for faster and uniform ripening
BANANA RIPENING
Ripening of Bananas with Ethylene
The refrigeration system must be capable of removing the
heat of respiration and maintain the temperature and
relative humidity at desired levels
The venting system must be capable of removing excess
carbon dioxide in order to maintain concentration level of
below 10,000 ppm
BANANA RIPENING
Ripening Cycle
Bananas are ripened to color stage 3 or 4 depending on
mode of retailing for dispatch to market
Depending on cultivar and market requirements, ripening
cycle maybe spread from 4 to 8 days
BANANA RIPENING
Common Myths about Fruit Ripening
There are many wide spread myths about fruit ripening
Media loves to propagate them with addition of
‘sensational’ findings
Certain TV channels regularly broadcast programs that
warn you never to touch a fruit let alone eat it
BANANA RIPENING
Most Common Myths about Fruit Ripening
Farmers harvest the fruit pre-maturely to realize “ahead of
season” high price, or
Farmers are afraid of glut in the market and want to sell
the produce as early as possible, or
Unscrupulous traders want to book profits as early as
possible without waiting for the fruit to ripen naturally
BANANA RIPENING
Most Common Myths about Fruit Ripening
Whilst there are obvious questions about use of harmful
chemicals to ripen the fruits
The fact that climacteric fruits necessarily need to be ripened
post harvest is completely ignored
Post harvest ripening of climacteric fruits need not necessarily
be called “artificial ripening”
BANANA RIPENING
Ripening Chambers in India
BANANA RIPENING
Ripening Chambers in India
BANANA RIPENING
Ripening Chambers in India
BANANA RIPENING
Ripening Chambers in India
BANANA RIPENING
Ripening Chambers in India
BANANA RIPENING
Ripening Chambers in India
BANANA RIPENING
Ripening Chambers in India
BANANA RIPENING
Indian Perspective
Presently in India, green bananas are transported in bulk in
trucks or railway wagons.
There is no packing except nominal cushion provided by
banana leaves.
There is no temperature or humidity control.
During transport, bananas inevitably get bruised and
damaged. These blemishes are not easily visible at the
green stage but show up in the ripe bananas.
More damage /bruises are inflicted in subsequent handling
in the distribution chain all the way up to the consumer.
BANANA RIPENING
Indian Perspective
BANANA RIPENING
Indian Perspective
All this damage can be easily avoided if the bananas are
packed in corrugated fiber boxes (CFB) at the plantation
itself.
However, this is not possible in short and medium term as
banana is a low value fruit and the market will not bear the
cost of box cartons.
Western countries have shifted to the use of box cartons
some 20 years ago and eventually this will happen in India
as well in due course.
BANANA RIPENING
CFB Boxes
BANANA RIPENING
CFB Boxes
BANANA RIPENING
Indian Perspective
Crates
In the mean time, ethylene ripening plants are taking a
step in the direction of reducing damage to the fruit by
use of plastic crates.
Bananas are being unloaded in crates and remain in
crates during the ripening process in the plant.
After ripening, the crates are sent out to the market, thus
reducing manual touching /handling significantly
BANANA RIPENING
Indian Perspective
BANANA RIPENING
Indian Perspective
BANANA RIPENING
VISION 2020
India is the largest producer of bananas in the World with
annual production estimated at 26 million MT
This means, daily production and consumption of more than
70,000 MT
If use of calcium carbide has to be completely eliminated, we
require 3,500 ripening plants in the country with an average
capacity of 20 MT per day
BANANA RIPENING
VISION 2020
The Government of India on its part is doing it’s utmost to
make it happen
Ministry of Agriculture, through National Horticulture Board
(NHB) and National Horticulture Mission (NHM) is offering
attractive incentive packages to encourage the industry
Generous capital investment subsidy is available for all new
projects adopting modern and energy efficient technologies
PROJECT AT GLANCE
Name of the Benificiary : XXXXXX
Constitution : XXXXXX
Name of Main Promotor : XXXXX
Proposed Project : Banana Ripening
Project Site : XXXXX
Land Area : 5000 Sq.Ft.
Total Cost of Project : 48.01 Lacs
Financial Assistance Required Term Loan : 20.00 Lacs
Working Capital : 4.00 Lacs
Finance Indicator Const Stage I II III IV V VI
Gross Receipts 135.84 163.10 186.86 212.64 240.54 270.70 -
Cash Accruals 11.51 12.30 14.47 16.78 19.24 21.82 -
Net Profit 2.53 5.12 8.99 12.73 16.44 20.15 -
D.S.C.R. 3.03 2.54 3.19 3.98 4.92 2.10 -
Avg. D.S.C.R. 3.29
INVESTMENT REQUIRED PARTICULARS AMOUNT
Land Leased
Building 12.15
Plant & Equipments 27.39
Plastic Crates 4.38
Contingencies 1.10
Margin for Working Capital 3.00
TOTAL 48.01
MEANS OF FINANCE PARTICULARS AMOUNT
Capital 22.25
Venture Capital (SFAC) 5.76
Term Loan from Bank 20.00
TOTAL 48.01
Capital Subisdy of Rs. 14.50 Lacs 5.79
CALCULATION OF COST OF PRODUCTION
No of Chamber 2
Capacity per Chamber 15 MT
Total Capacity 30 MT
No of Days for each cycle 4
Total Cycle in a Year 45
Total Production 1,350 MT
Cost of Raw Banana per MT 15,000 MT
Total Cost in a Year 202.50 MT
Particulars 1 2 3 4 5 6
Capacity Utilisation 50% 55% 60% 65% 70% 75%
Opening Stock - 28 31 34 37 39
Purchases 675 743 810 878 945 1,013
Closing Stock 28 31 34 37 39 42
Net Consumed 647 740 807 875 942 1,010
Price per MT 15000 15,750 16,540 17,370 18,240 19,150
Purchase in Lacs 97.03 116.50 133.51 151.93 171.86 193.36
CALCULATION OF SALE OF product
Year Capacity Total Rate per Amount
Utilisation Production Ton
2016-17 50% 647 21,000.00 135.84
2017-18 55% 740 22,050.00 163.10
2018-19 60% 807 23,150.00 186.86
2019-20 65% 875 24,310.00 212.64
2020-21 70% 942 25,530.00 240.54
2021-22 75% 1,010 26,810.00 270.70
PROJECTED BALANCE SHEET
PARTICULARS 1 2 3 4 5 6
Const. Period
LIABILITIES
Capital 22.25 22.25 22.25 22.25 22.25 22.25 22.25
Net Profit - 0.78 3.59 9.28 17.73 28.93 42.56
General Reserve - 14.50 14.50 14.50 14.50 14.50 14.50
Venture Capital (SFAC) 5.76 5.76 5.76 5.76 5.76 5.76 -
Term Loan 20.00 18.80 16.40 14.00 11.60 9.20 -
Working Capital - 4.00 4.00 4.00 4.00 4.00 4.00
Expenses Payable - 0.60 0.66 0.73 0.80 0.88 0.97
TOTAL 48.01 66.69 67.16 70.52 76.64 85.52 84.28
ASSETS
FIXED ASSETS/PLANT 45.01 45.01 45.01 50.01 50.01 50.01 56.01
Less Depriciation - 6.63 11.87 16.13 19.63 22.57 25.06
45.01 38.39 33.14 33.89 30.38 27.44 30.95
Capital Subsidy - 14.50 14.50 14.50 14.50 14.50 -
CURRENT ASSETS
Stock of Banana - 4.22 4.87 5.58 6.35 7.18 8.08
Advances & Receivables - 7.84 9.41 10.78 12.27 13.88 15.62
Cash & Bank Balance 3.00 1.75 5.24 5.77 13.15 22.52 29.63
TOTAL 48.01 66.69 67.16 70.52 76.64 85.52 84.28
- - - - - - -
PROJECTED PROFITABILITY STATEMENT
PARTICULARS 1 2 3 4 5 6
INCOME
Sales 135.84 163.10 186.86 212.64 240.54 270.70
TOTAL 135.84 163.10 186.86 212.64 240.54 270.70
EXPENDITURE
Cost of Material 97.03 116.50 133.51 151.93 171.86 193.36
Transportation Cost 6.79 8.16 9.34 10.63 12.03 13.53
Power & Fuel Expenss 7.10 7.81 8.60 9.46 10.40 11.44
Packing Expense 2.50 2.75 3.03 3.33 3.66 4.03
Consumables 0.27 0.33 0.37 0.43 0.48 0.54
Factory Rent 0.12 0.12 0.12 0.13 0.13 0.13
Salary & Wages 5.41 5.95 6.55 7.20 7.92 8.72
Insurance 0.15 0.15 0.15 0.15 0.15 0.15
Repair & Maintainance - 3.00 3.60 4.32 5.18 6.22
Admin. & Selling Exp. 4.08 4.89 5.61 6.38 7.22 8.12
Intt on Working Capital 0.63 0.63 0.63 0.63 0.63 0.63
Intt. On Term Loan 2.60 2.44 2.13 1.82 1.51 1.20
Depreciation 6.63 5.25 4.25 3.51 2.94 2.49
Cost of Project (B) 133.31 157.98 177.88 199.91 224.10 250.55
GROSS PROFIT [A-B] 2.53 5.12 8.99 12.73 16.44 20.15
NET PROFIT BEFORE TAX 2.53 5.12 8.99 12.73 16.44 20.15
LESS : TAXES 0.25 0.51 0.90 1.27 1.64 2.01
NET PROFIT AFTER TAX 2.28 4.61 8.09 11.45 14.80 18.13
CASH FUND FLOW STATEMENT
PARTICULARS Const. 1 2 3 4 5 6
SOURCES OF FUND
Incr. in Capital 22.25 - - - - - -
Fund From operators - 2.53 5.12 8.99 12.73 16.44 20.15
Incr. in Subsidy - 14.50
Incr. in Term Loan from 20.00 - - - - - -
Incr. in Venture Capital 5.76 - - - - - -
Depreciation - 6.63 5.25 4.25 3.51 2.94 2.49
Incr. in Working Capital - 4.00 - - - - -
Incr. in Expenses Payable - 0.60 0.06 0.07 0.07 0.08 0.09
Adjustment of Subsidy - - - - - - 14.50
TOTAL 48.01 28.26 10.43 13.30 16.31 19.46 37.23
APPLICATION OF FUND
Incr. in Fixed Assets/Plant 45.01 - - 5.00 - - 6.00
Incr. in Subsidy - 14.50 - - - - -
Incr. in Stock 4.22 0.65 0.71 0.77 0.83 0.90
Incr. in Advances & Rece. - 7.84 1.57 1.37 1.49 1.61 1.74
Rep. Loan of Bank Loan - 1.20 2.40 2.40 2.40 2.40 9.20
Rep. of Venture Capital - - - - - - 5.76
Drawings - 1.50 1.80 2.40 3.00 3.60 4.50
Taxation - 0.25 0.51 0.90 1.27 1.64 2.01
TOTAL 45.01 29.51 6.94 12.78 8.93 10.08 30.11
Opening Balance - 3.00 1.75 5.24 5.77 13.15 22.52
Surplus 3.00 (1.25) 3.49 0.52 7.38 9.37 7.11
Closing Balance 3.00 1.75 5.24 5.77 13.15 22.52 29.63
DETAIL OF SALARY WAGES
Particular Nos. Salary Per Total Annual
Month Salary
Manager 1 10000.00 10000.00 120,000
Marketing 1 6000.00 6000.00 72,000
Helpers/Labours 5 3000.00 15000.00 180,000
Accountant/Other 2 5000.00 10000.00 120,000
492,000
Add Fringe benefit @ 10% 49,200
Total Salary 541,200
In Lacs 5.41
DETAIL OF POWER CONSUMPTION
Total Power Load Required 15 HP
No of Days 210
No of Hours 24
Total Power Expense 56398 KWH
Power Supply from DG Set 100% 56398
COST OF POWER
Cost of power from DG Set 5.64
( @10/- per Unit)
Add : Fixed Cost 0.90
Add : Lubricants 0.56
Total Annual Power Expense 7.10
TERM LOAN REPAYMENT SCHEDULE Intt rate @12.5%
Year Particulars Op. Balance Interest Total Instalment Total Closing
Repayment Balance
1 Amount Borrowed 20.00 0.65 20.65 - 0.65 20.00
2 Balance Carried down 20.00 2.60 22.60 1.20 3.80 18.80
3 Balance Carried down 18.80 2.44 21.24 2.40 4.84 16.40
4 Balance Carried down 16.40 2.13 18.53 2.40 4.53 14.00
5 Balance Carried down 14.00 1.82 15.82 2.40 4.22 11.60
6 Balance Carried down 11.60 1.51 13.11 2.40 3.91 9.20
7 Balance Carried down 9.20 1.20 10.40 9.20 10.40 -
Mortorium Period 9 Months
Repayment Period 66 Months
Door to Door 75 Months (6 Yrs 3 Month)
Intallment 66 intallment of Rs. 0.25 Lacs each (Rs. 16.50 Lacs)
adjustment of subsidy in Last year Rs. 5.50 Lacs
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