AMLA PROCESSING

1) INTRODUCTION

Phyllanthus emblica, 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, etc.
Chayavanprash 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 using amla 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 Dewas, Hoshangabad, Shivani, Rewa, Satna, Tikamgarh, Betual,
Pradesh 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 NA7. Besides 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:

Manpower Total Requirements

 Technical Staff 7
Adm. Staff 8
Marketing Staff 6
Labour 49
Total 70

9) IMPLEMENTATION SCHEDULE:

Project Stages MONTHS

1 2 3 4 5 6 7 8 9 10
Purchase of Land
Completion of Building
Ordering of Machinery
Delivery of Machinery
Term/Wkg Loan
Sanction
Installation of
Machinery
Commissioning of
Plant
RM/Inputs
Procurement
Manpower
Appointments
Commercial Production

10) COST OF PROJECT:

COST OF PROJECT

No Rate/Uni
. Costing Heads Qty t Rs. Lakh
Land in Sq. M. +
1 Expenses 2,000 1,000.00 20.00

2 Building 1,000 9,000.00 90.00

3 Plant & Machinery 110.00

Other Capital
4 Investment 25.00

5 Contigency 10.00

Total Cost of Project 255.00

11) MEANS OF FINANCE:

MEANS OF FINANCE
 Means Heads Rs. Lakhs

Promoters Capital 63.75

Term Loan 132.00

MFPI Subsidy 50.00

Unsecured Deposits 9.25

Total Means of
Fiannce 255.00

12) WORKING CAPITAL CALCULATION:

Working Capital Calculation

Value
Stock Promot Bank
Total of Promote
Particulars Period er Borrowin
Amount Stock r Margin
Days Share g
Period
Raw Material 1,950.00 15 97. 0.50 48.75 48.75
50
Packing Material 978.00 30 97. 0.40 39.12 58.68
80
Work in Process 3,471.31 3 34. 0.40 13.89 20.83
71
FP Stock 3,640.00 15 182. 0.40 72.80 109.20
00
Bills Receivable 3,640.00 15 182. 0.40 72.80 109.20
00
Working 12.00 30 1. 1.00 1.20 0.00
Expense 20
Total: 13,691.31 0.00 248.56 346.66

13) LIST OF MACHINERY REQUIRED:

N
o Equipment Qty
1 Fruit & Vegetable Washer: 5 ton/hr 1
2 Amla Shredding Machine 2
3 Amla Juicer 2
4 Standardization Tanks 500 lit each 2
5 Pasteurizer 1
6 Holding Tank 2
7 Steam Jacketed Kettles: 500 lit 2
8 Canning Machinery 1
  Harshad Food Equipments
Sect.7, Plot No. 96,
PCNTDA,
Bhosari,
Pune - 411026,
Maharashtra

 Ylem Energy,
No. 25/34, Anand Chamber,
East Patel Nagar,
Delhi 110008

14) PROFITABILITY CALCULATIONS:

Sr.
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
No.
Gross Sales (Rs. In
A
lakhs) 2548 2912 3276 3276 3276
Less:
1 Raw Materials 1365 1560 1755 1755 1755
2 Packing Material 684.6 782.4 880.2 880.2 880.2
3 Fuel 63 72 81 81 81
4 Power 35.28 40.32 45.36 45.36 45.36
105.173 105.173 105.173
5 Manpower
83.7096 94.4416 6 6 6
6 Depreciation 26.25 30 33.75 33.75 33.75
7 Sundry Expenses 35 40 45 45 45
8 Interest on Term Loan 11.088 12.672 14.256 14.256 14.256
9 Interest on WC Loan 36.575 41.8 47.025 47.025 47.025
9 Repairs & Maintenance 17.5 20 22.5 22.5 22.5
10 Marketing Expenses 80.5 92 103.5 103.5 103.5
2438.50 2785.63 3132.76 3132.76 3132.76
B Production Cost
26 36 46 46 46
109.497 126.366 143.235 143.235 143.235
C Gross Profit (A-B):
4 4 4 4 4
32.8492 37.9099 42.9706 42.9706 42.9706
Taxes @ 30%
2 2 2 2 2
76.6481 88.4564 100.264 100.264 100.264
Net Profit
8 8 78 78 78

The proposed unit will have the production capacity of 2600 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 5% whereas for plant and machinery it is at 10%.
The sales price of Amla pulp is taken at the rate of Rs. 67,500 per MT on an average
for proposed project.

15) BREAKEVEN ANALYSIS:

Break Even Point: Annual Fixed Cost x100/ Annual Fixed Cost + Profit = 61.03

16) 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.

17) 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.

18) 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.
Udyamimitra portal ( link : www.udyamimitra.in ) can also be accessed for
handholding services viz. application filling / project report preparation, EDP,
financial Training, Skill Development, mentoring etc.
Entrepreneurship program helps to run business successfully is also available from
Institutes like Entrepreneurship Development Institute of India (EDII) and its
affiliates all over India.

Disclaimer:
Only few machine manufacturers are mentioned in the profile, although many
machine manufacturers are available in the market. The addresses given for
machinery manufacturers have been taken from reliable sources, to the best of
knowledge and contacts. However, no responsibility is admitted, in case any
inadvertent error or incorrectness is noticed therein. Further the same have been
given by way of information only and do not carry any recommendation.

Source:- Udyami Mitra/Sidbi