CONDITIONS

PRICE OF BOTTLE IS TO BE KEPT AT Rs 3 P.U.

THE LOAN IS TO BE TAKEN FOR 3 YEARS
THE LOAN IS PARTY TAKEN FROMM
GOVERNMENT BANKS AND PARTLY FROM
PRIVATE BANKS
WE HAVE NO CAPITAL TO START WITH
WHATSOVER
INCOME TAX IS TO BE CHARGED
ACCORDINGLY

SOFT DRINKS

Carbonated soft drinks constitute the major

category in Aerated Soft Drinks, the other
two categories being juice based soft drinks
and squash, sharbat and syrup. Various types
of soft drinks including orange, lime and lemon
based drinks as well as soda water fall in the
category of aerated soft drinks. These water
drinks consist of water, carbon-di-oxide, colour,
additives and preservative. In a tropical country
like India, which has oppressive summers, there
is substantial market for aerated soft drinks.

MARKET POTENTIAL
The all India production of aerated soft drinks is about 900
crore bottles per year, of which the production of
carbonated soft drinks is about 70% i.e. 630 crore
bottles. The per capita consumption of carbonated
drinks is about 4 bottles per year, which is low compared
to other developing countries such as Pakistan -13,
Bangladesh 8, Egypt 3, and extremely low
compared to USA where it is 350 bottles. Hence there is
considerable potential for consumption to grow. Based
on the average per capita consumption of 4 bottles
and considering the population of 385 lakhs in the
northern region, the demand for aerated water drinks
is estimated at 2.85 crore bottles per year.

 The market is dominated by brands of leading

all India companies such as Parle (46%), Pure
Drinks (23%), McDowel (7%). Every State has its
own local brands which have their own market.
There are one or two local brands, which have a
limited production. Assuming that local units
can get 5% of the market, i.e. 15 lakh bottles
and considering the capacity of typical tiny unit
of about 15 lakh bottles per year. there appears
to be scope for 2 or 3 units to be set up.

IGNITE
BE YOUNG

PLANT CAPACITY
The production basis would be as under :
No.of bottles per crate
-24 bottles
Daily production
-42 crates
Annual working days
-300
Average capacity utilization -60%
Annual production at 60% capacity
utilization:
* Crates
- 12600
* Bottles
- 302400

It is proposed to produce orange,cola drinks as

given below:
Crates/Yr.
Orange
4600
Cola
8000
-----------------------12600
------------------------

RAW MATERIALS

The main raw materials required are

sugar, citric acid, essence, activated
carbon, glucose & carbon-di-oxide
and the annual requirements are as
under:
SUGAR 3.23 TONNES
CITRIC ACID- 126 KG
ESSENCE 28 KG
ACTIVATED CARBON- 23 KG
LIQUID GLUCOSE 2.5 KG

PROCESS
The main process steps are:
i) Making concentrate of sugar, glucose,
citric acid, essence and preservatives.
ii) Feeding the concentrate into dosing
machine.
iii) Releasing the concentrate in each bottle
in a
required proportion.
iv) Filling the bottle with treated water.
v) Placing crown-cork on the bottle and
passing through a shaker for proper mixing.

MACHINERY
The major equipment required for the
production of carbonated soft drinks
are:
a.
Automatic bottle filling machine
-1 UNIT
b.
Automatic bottle washing machine
-1 UNIT
c.
Water treatment plant
- 1 UNIT
d.
Refrigeration unit

INFRASTRUCTURE
Land
500 sq.yard.
Shed
250 sq yard
Power
kw
Water
ltr. Per day.

10

800

LOCATION
HARYANA- SECTOR 57, FARIDABAD
OR
HARYANA-SECTOR 63 FARIDABAD

TOTAL CAPITAL REQUIREMENT

A. Fixed Capital:
Land
Building
Machinery
Miscellaneous fixed assets
Preliminary and pre-operative expenses

B. Working Capital:
Raw materials & packing materials
Including bottle crates)
Finished goods
Working expenses
Receivables

(Rs in lakh)
2.00
4.00
4.00
1.00
1.80
12
====

1 month
1 week
1 month
1 week

0.50
0.10
0.33
0.37
1.30
====

Total (A)+(B)

=13.30 LAKH

PROPOSED MEANS OF
FINANCE
TOTAL CAPITAL REQUIREMENTS
=
13.30 LAKH
50% FROM GOVERNMENT BANK =
6.65 LAKH
50% FROM PRIVATE BANK
=
6.65 LAKH

OPERATING EXPENSES
The annual operating expenses are estimated at Rs 11.92 lakhs as given
below:
(Rs
in lakhs)

Raw materials (refer annexure)

3.66

Utilities and packing materials

1.05

Wages & Salaries

2.00

Overheads
1.00

Selling expenses
1.51

Interest on govt loan

@ 12%
0.80

Interest on private loan @ 15%

1.00

Depreciation @10%
0.90
11.92
=====

SALES REALISATION
The market price of pepsi, Thumps Up etc. is in
the range of Rs 10.00 to 12.00 per bottle.
Providing for distributors/dealers commission,
sales tax etc. the ex-factory realization would
be about Rs 6.00 to 7.00 per bottle.
Considering that a tiny unit would have to face
competition from premier brands, a market
penetration price of Rs 3/- per bottle i.e. Rs
120/- per crate is considered for orange and
cola. On this basis, the annual sales realization
is estimated at Rs 15.12 lakhs as under:

NAME
QTY
PRICE PER CRATE
TOTAL
ORANGE
4600
120
552000
COLA
8000
120
960000
---------1512000
------------

PROFITABILITY
Based on the sales realization and
the operating expenses, the profit at
60% capacity utilization would be Rs
3.20 lakhs per year. This works out
to a return on investment of 42%.

HIGHLIGHTS
Total capital requirement
Rs 13.30
lakhs Annual sales realization
Rs
15.12 lakhs Annual operating
expenses
Rs 11.92 lakhs Annual
profit (pre-tax)
Rs 3.20 lakhs
No.of persons employed
15
Tax to be paid = Rs 12000