Feasibility Study Report on

Sugar Cane Juice

Executive Summary

Sugar Cane Juice Factory is one of the best industries for getting foreign earning in the short run.
Basically sugar cane factory is a cottage industry but now it turning in to big industry. Because of its
properties, facilities it is now gaining more and more interest of the world wide. The demand of sugar
cane juice is increasing world wide. So, to meet the demand of foreign market, exporting firms are
producing more sugar cane juice in new packets and bottles. More over the demand is increasing day by
day. To comply with the academic requirement of Marketing Management Bus 315, Manarat
International University Bangladesh. We are assigned to design a business report on sugar cane juice
factory. At first we have taken a side of background of juice factory which is contributing the national
earning by export. A particle observation was conducted to make the sugar cane juice factory market
demand through technical and financial aspects of proposed project. We have analyzed the projects
profitability by four techniques namely NPV and playback period. All the techniques support the
project. We have also analyzed the social east benefit aspects. It hoped that the project will contribute
our national economy.

Contents

Matters

Pages

1. Project background and history

2. Strengths, Weaknesses, Opportunities and Threats
Analysis (SWOT)
3. Market and Demand Analysis
4. Technical Analysis
5. Financial and Economic Evaluation
6. Drinks based on sugarcane juice
7. Social Cost Benefit Analysis
8. Be Extremely Careful for Sugarcane Juice taking
from open place:
9. Conclusion

1 . P ro je c t b a c k gr o u n d a n d h i s t o ry
Making hygienic and fresh bottled juice from sugarcane is what the
project is all about. It is predominantly a raw -material oriented project having
both domestic and export market orientation. This type of industry is
considered to belong to the cottage in dustry of a country. And a LDC (Least
developed country) like Bangladesh, cottage industry like this one can be just
the right one to fit into the framework of the economic conditions and the
general industrial development of the country. Initially the Ind ustrial Policy
of 1973 of Bangladesh emphasized on the development of small and medium
scale industries so that it has distribution equity. Later the NIP -82 and other
policies

only

deepened

this

strategy

under

SAF

(Structural

Adjustment

Facility) and ESAF (Enhanced Structural Adjustment Facility) in the following

form:
Table: 1
Industrial Tariff %(both on input and output)
Domestic Industry
5%

Export oriented Industry

0%

And since this is a new product in our country, it has a great opportunity to
prosper.

1.1 The amazing sugarcane plant

Sugarcane is a giant tropical grass. It belongs to a family of grasses containing
some 5000 species including barley, wheat,
maize, rice and sorghum. It can trap the
suns energy and convert it into sucrose
(sugar) more effectively than other crop.
Sugar is made in the plants leaves by a
natural process called photosynthesis.
4

1 .2 Th e p e r f e c t c l i ma t e f o r s u g a r c a n e
S u ga r c a n e p r e f e r s w a r m s un n y w e a th e r , f r e e d o m f r o m f r o s t, w e l l d r a i n e d s o i l a n d a t l e a s t 1 5 0 0 mm o f r a i n o r i r r i ga t i o n a y e a r . T h i s
ma k e s i t h i gh l y s u i ta b l e f o r th e s u b - t r o p i c a l c l i ma t e , w h i c h p r e v a i l s
o n t h e c o a s ta l p l a i n s a n d r i v e r v a l l e y s a l o n g Que e n s l a n d s e a s te r n
c o a s tl i n e .

Fine,

r e l a ti v e l y

cool

w e a th e r ,

i m me d i a t e l y

before

h a r v e s ti n g, r e ta r d s p l a n t gr o w th a n d i n c r e a s e s s u ga r c o n te n t.
2 . S t re n gt h s , W e a kn e s s e s , O p p o rt u n i t i e s a n d T h re a t s A n a ly s i s
(SWOT)
2.1 Strengths:

1.

A v a i l a b i l i ty o f r a w ma te r i a l th a t i s p l e n ty o f s u ga r c a n e ,

2.

Do me s ti c a s w e l l a s f o r e i gn s o ur c e s o f s up p l y ,

3.

V e r y s i mp l e te c h n o l o gy i s us e d ,

4.

A v a i l a b i l i ty o f f un d ,

2.2 Weaknesses:

1.

I t i s d i f f i c ul t to p r e s e r v e b o th th e s u ga r c a n e a n d th e j ui c e

f o r to o l o n g,
2.

I t n e e d s h u ge w a r e h o us e f a c i l i ty ,

3.

T h e c o l o r o f th e n a t u r a l j ui c e i s n o t e y e - c a tc h i n g,

4.

I t w i l l n o t a tt r a c t t h e l a r ge n u mb e r o f d i a b e te s p a ti e n t s o f

B a n gl a d e s h
2.3 Opportunities:

1.

T h e r e i s n o e n e r gy d r i n k i n B a n gl a d e s h a t p r e s e n t,

2.

D i f f i c ul ty

for

f o r e i gn

energy

drink

to

c o mp e te

in

B a n gl a d e s h d ue to a l c o h o l i c p r o b l e m,
3.

P o s s i b i l i ty o f gr e a te r a c c e p ta b i l i ty d ue to i ts n a t u r a l

f e a tu r e s ,
5

4.

I t w i l l h a v e g r e a te r ma r k e t s h a r e a s i t w i l l s e r v e b o th th e

ma r k e t o f j ui c e a n d s o f t d r i n k ,
2.4 Threats:

1.

C o n s u me r s p e r c e p ti o n r e ga r d i n g t h e n e u tr a l i ty o f th e

b o ttl e d j ui c e ,
2.

A b s e n c e o f s uc h k i n d o f n a tu r a l e n e r gy d r i n k i n th e

ma r k e t,
3.

M a n y c us to me r s w a n t to h a v e th e j ui c e p r e p a r e d i n - f r o n t

o f th e m a n d d r i n k i n s ta n tl y to ge t t h e r e a l n a t ur a l ta s te ,
3 . M a r ke t a n d De m a n d A n a l y s i s
3.1 Situational analysis and specification of objectives:

I n B a n gl a d e s h , a l mo s t 9 mo n th s o f a y e a r i s s u mme r . S o th e r e
a l w a y s e x i s t s th e d e m a n d f o r s o f t d r i n k s , j u i c e , e n e r gy d r i n k s e tc .
C o n s u me r s o f th e s e a r e r e a d y to b uy 2 5 0 ml @ T k . 1 0 , 1 0 0 0 ml @ T k .
30 and 2000 ml @ Tk. 45.
I n c a s e o f o ur s ug a r c a n e j ui c e , f r o m o ur p r i ma r y d a ta c o l l e c te d f r o m
p e r s o n a l c o n ta c t w i th i ts c o n s um e r s a n d p r o d uc e r s , w e f i n d th a t o n
a n a v e r a ge ; i t s e l l s 1 5 gl a s s e s ( 2 0 0 ml p e r gl a s s ) p e r s um me r h o ur @
T k . 5 p e r gl a s s .

The dominant buyers of our product are the students and laborers. But
the upper class of the society can also be attracted if we can market it as
Energy Drink also.
The highest sale of the traditional sugarcane juice available right now is
400 glasses in a 10-hour day @ Tk. 5 that is 40 glasses per hour. The lowest

sale is 80 glasses @ Tk.5 in a 10 hour day that is 8 glasses per hour. Normally
the lowest sales days are the rainy days.
There is enough demand in almost 10 months of a year to run the juice
business. For the other 2 months we can run the business of the bi -products
to sustain in the market.
3.2 Collection of Secondary data
There have been some genuine problems in collecting secondary data. In
Bangladesh,

nobody

is

prepared

to

disclose

much.

Access

is

restricted

everywhere. Moreover, as this is a new project in the context of Bangladesh,

we were always facing the problem of lack of publ ished data that signifies the
reality. So we went mainly for internet to search some published data.
We found that there have already been technologies in western countries and
even countries like Malaysia for producing bottled sugarcane juice. We found
that it is suitable for venture through cottage industries.
3.3 Market Survey
As is evident from the above discussion that our secondary data
collection was not sufficient for our purposes to be fulfilled, we went for a
market survey.

Sampling Plan for the Survey and Its Result

We conducted a sampling test in performing the survey. Our sample size
comprised 100 consumers of different ages and professions,
55% of our sample is consumers of mineral water which is positive for
our product,
50% is taking the sugarcane juice available right now which also is
instrumental for us,
60% of the total people are either taking white drinks or fruit juices
which justify the feasibility of our product,
71% are aware that bottled sugarcane juic e are hygienic than the one
available in the open market at present,

 74% are aware of the unique features of sugarcane juice that it can give
to human body which highly fruitful for acceptability of our product

Ch a r a c t e r i z a t i o n o f t h e M a rk e t

The existing market is highly sophisticated,

Highly characterized by multinational companies,

Lack of domestic companies,

Governmental facilities are available if our product is marketed

through cottage industries as suggested by our secondary data,

Ample domestic raw materials are available.

3.4 Market Planning

We will market our product in two forms namely:
Bottled sugarcane juice,
Non-alcoholic natural energy -drink.
We will educate and make aware our consumers of the unique features of
sugarcane juice that it can give to human body, We will provide recyclable and
attractive bottles and canes.

P r o j e c t e d S a le s
From the market demand analysis and other financial analysis we found
it feasible to produce and sale 25,00000 liters each year.

4. Technical Analysis

4 . 1 P la n t Ca p a c i t y
The machine to be used for production has a capacity of 3000000 liters a
year.
4.2 Material Inputs
In Asian countries, sugar and sugarcane juice are produced only from
sugarcane, as the climatic conditions are suitable for cane cultivationThe usual
sugarcane constituents along with their content in sugarcane as a % of total
weight are as given below.

S u ga rc a n e Co n s t i t u e n t s
Table: 2
Constituent

% Of total weight

Water

69-75

Sucrose

8-16

Reducing sugars

0.5-2

Organic substances

0.5-1

Nitrogenous bodies

0.5-1

Ash

0.3-0.8

Fiber

10-16

Rainfall and temperature are the two important determining factors for
the yield and quality of sugarcane. Although reduced level of rainfall can be
substituted by irrigation or sprinkling of canal water. Every ton of cane
cultivation

requires

approximately

60 -70

ton

of

water

under

controlled

conditions. But under field conditions the water requireme nt for sugarcane
varies with variations in soil and climatic conditions. The efficiency of water
uptake and use varies with different varieties.
4.3 Sugarcane Juice:
9

Sugarcane juice is acidic in nature. Besides sugar it contains many other

organic and inorganic and soluble as well as insoluble substances in varying
amounts, together called as non -sugars, to the extent of 3 to 7.5% of total
quantity. These insoluble suspended matters make the juice viscous and
turbid. The constituents of sugarcane juice as a percentage of total quantity
are as given below.

S u ga rc a n e J u i c e C o n s t i t u e n t s
Table: 3
Constituent

% Of total quantity

Water

75-85

Sucrose

10-21

Other sugars

0.3-3

Other organic substances

Nitrogenous bodies

0.2-0.6
0.5-1

4.4 Supply Program

Sugarcane grows in plenty in India, Bangladesh and similar other sub tropical countries. Besides Asia, Australia possesses the largest market -share
in this regard. Although there are bigger producers, Australia is one of the
worlds largest and most reliab le exporters of high quality sugar. Each year it
ships more than four million tones a year, mainly to Asia, North America and
the Middle East. Around 94% of Australias sugar output comes from Queens
land and about 5% from northern New South Wales.
4.5 Location and Site
We have found that raw material for this project is available in Tangail, Pabna, Eashardi,
Dinajpur, Kustia and in this region. Besides in our project plan we keep the provision of selling the
trashed wastage to Pakshi Paper mill. Keeping every thing in consideration we have choosen the land in
Kalihati thana of Tangail.

10

This land is financed by a financer. It has option to use the river to carry out the materials from
other districts if necessary. Behind the plant, we will have land for cultivating sugarcane.
4.6 Project Engineering
Traditionally the popular local drink sugarcane juice is made with a
special machine (like on the picture below) out of fresh sugarcane .
Our Version of Making and Preserving Bottled Sugarcane Juice.Traditional sugarcane juice, a highly
valued local drink, as is shown in the above picture only keeps for a few hours. Thanks to
JUCANNTechs process, it can keep for
several weeks, or even several months, and
it maintains its authentic taste.
4.6.1

Sugarcane

Beverages

(Technology Source: CFTRI):

Sugarcane juice is a nutritious

product
sugars,

containing
minerals

and

natural
organic

acids. At present the juice is

extracted by street vendors in an
unhygienic

way.

Further,

it

cannot be stored even for couple

of hours as it deteriorates fast. Sugarcane being available in plenty, it can be
11

utilized for making hygienically prepared and p rocessed beverages. This

product has a good market potential. Small units can easily be started in rural
areas and the products can be sold in semi urban and urban areas.
The process is simple and consists of crushing, classification and filtration to
obtain clear beverages with addition of permitted preservatives at suitable
level and then bottling.

H o w S u g a rc a n e j u i c e i s m a d e :
Bo t t li n g o f S u ga rc a n e J u i c e
Material input through bottling, everything will be under automation process.

Automated Bottling Line

High-speed

move

bottles to stations on
a
Conveyor belts
production line to
automatically fill, cap,
seal, and package the
bottles quickly and
efficiently. It will
make the production process easier and faster.

Process of bottling sugarcane juice

Table: 4
1.

Function

To preserve the sugarcane juice in

bottles

2.

Specification

(a)Overall

---

dimension
12

(b) Capacity

Depending

on

the

production

on

the

production

capacity
Power required

Depending
capacity

3.

General

Information

A technology has been developed

for preserving the sugarcane juice in
bottles for a period up to six
months. The process of preserving
the sugarcane juice involves peeling,
crushing, filtration, pasteurization
and bottling. Sodium Benzoate @
125 ppm is added as preservative.
The bottled juice can be stored
without any loss in the quality and
flavor for six months at room
temperature. The cost involved for
the production of one bottle (200
ml) of juice is Rs.1.50. Consumer
acceptability of the preserved juice
was evaluated and found to be 98
per cent.

4.

Cost of the unit

Rs. 2 lakhs investment for a

minimum capacity

5.

Cost of operation

Rs. 1.50 per bottle of 200 ml.

4.8 TECHNIQUE IN PRESERVING SUGARCANE JUICE

13

Sugarcane juice is a popular beverage in Malaysia. Its unique flavor and

sweet taste makes a very thirst quenching drink especially when consumed
chilled. However, browning and changes in flavor and viscosity have been
identified as major problems in sugarcane juice during storage. These have
limited the distribution of product to bigger and
distant markets. Factors causing the browning
reaction and spoilage were investigated. There was
no significant effect of using additives to preserve
the color of juice extracted from heat treated
stems. Using this new technique, storage was
enhanced from four days to twelve days at 5C.

4.9 Chemical Processing (Improving the juice quality) :

5. Financial and Economic Evaluation

5.1 Cost Analysis
Fixed cost: Table: 6
Particulars

taka

Cost of machine

10,000,000

Cost of building

2,500,000

Cost of furniture and fixture

200,000

Cost of land

1,000,000

Cost of bottle

600,000

Industry setup

100,000
150,000

Insurance of plant
Total costs

14,550,000

C o s t d a t a (v a ri a b l e & fi x e d ) Ta b le : 7
Particulars

Variable(Per

Fixed(Per year)
14

unit)
Direct expenses:
Raw materials

6.50

Direct labor

0.30

Cost of bottle

600000

Factory overheads:
Fuel and lubricants

0.10

Depreciation of plant

1000000

Administrative overheads:
Staff cost

400000

Depreciation of furniture

20000

Repair and maintenance

5000

Telephone and postage

2000

Insurance

15000

Traveling and conveyance

5000

Legal and professional expense

50000

Printing and office supplies

20000

Selling and distribution expenses

Carriage outward

0.10

Advertisement expense
Staff cost

200000
0.20

Postage and currior

3000

Office supplies

12000

Office and godown rent

30000

Licence fee
Total

5000
7.20

Break even point

2367000
132978

5.4 Source of financing:

Personal sources
&
Institutional sources

15

new processes and products to increase the added value of sugarcane

ten-fold.

Its business policy will be focused on transferring technology to

producers (distillers, sugar producers, fruit juice producers), aimed at The

industrial-scale use of sugarcane has remained confined to the production of
sugar and rum, products that today have little added value. Yet its processing
potential is enormous. Researchers from INRA 1 in Guadeloupe have adapted
the ultra filtration technique that makes it possible to stabi lize sugarcane juice
in order to make it process able in many different waysThe process developed
by the INRA Guadeloupe researchers makes it possible to solve two of the
main problems concerning raw sugarcane juice: the large amount of germs
present and colloidal impurities.

The ultra filtration technique respects the

juices qualities and makes it easy to subsequently process and preserve it.
Traditional sugarcane juice, a highly valued local drink, only keeps for a few
hours. Thanks to JUCANNTechs p rocess, it can keep for several weeks, or
even several months, and it maintains its authentic taste.
But other product families can be developed along the lines of the patented process: festive
bubbly drinks or a sugarcane Sauternes style wine, carbonated drinks competing with cola drinks, a
natural sweet ingredient for producing ice-cream, desserts and fruit drinks, health-fitness products
thanks to the richness of sugarcane juice in minerals, vitamins and energy.

7 . S o c i a l Co s t Be n e fi t A n a ly s i s

7.1 Social cost:

This project has a few social costs:
It may create a temporary jobless situation for traditional sugarcane juice producer
It may have some opportunity loss of making sugar from sugarcane

16

7 . 2 S o c i a l b e n e fi t :

F o o d V a lu e
The juice is extracted from the cane by pressing it through iron rollers.
It is nutritious and refreshing. It contains about 15 per cent natural sugar and
is rich in organic salts and vitamins.
Originally, sugarcane was grown solely for chewing in the pacific and
South Eastern Asia, a custom which has now spread throughout most of the
tropics. The juice can also be used for health improvement.

S u ga rc a n e e n e r gy v a lu e s p e r 10 0 gm s e d i b le po rt i o n
Table: 10
Food Value
Moisture
Protein
Fat
Minerals
Carbohydrates
Total

Minerals and Vitamins

90.2%
0.1%
0.2%
0.4%
9.1%
100%

Calcium
Phosphorus
Iron
Calorific Value - 39

10 mg
10 mg
1.1 mg

drinking or sweetening. In hot summer days, it forms a soothing drink. A little

lime juice may be mixed in the juice to improve its flavor.

Natural Benefits and Curative Properties Sugarcane juice has many

medicinal properties. It strengthens the stomach, kidneys, heart, eyes, brain
and sex organs.

17

B e n e fi c i a l fo r :
F e v e rs
The juice is beneficial in fevers. In febrile disorders which causes [ever, wh en
there is great protein loss, liberal intake of sugarcane juice supplies the body
with necessary protein and other food elements.

Jaundice
Mixed with lime juice, it can hasten recovery from jaundice. It is,
however, very essential that the juice, mu st be clean, preferably prepared at
home. Resistance is low in hepatitis and any infected beverage could make
matters worse.

W e a k Te e t h
The juice sucked from the sugarcane can prove highly valuable in case of weak
teeth due to lack of proper exercise resulting from excessive use of soft
foods. It gives a form of exercise to the teeth and makes them strong. It also
keeps the teeth clean and increases their life.

9. Conclusion
Sugarcane is the most important member of the plant kingdom with a
metabolism leading to the accumulation of sucrose. It is transported as
glucose and fructose within the growing plant. The crop provides the cheapest
of energy-giving food.
The sugarcane belongs to the grass family. It is a perennial plant which
grows from 2.5 to 4. 25 meters. With sufficient care, it grows up to 7.5 meters.
The diameter of steins varies from 2.5 to 8 cm. It has several joints after
every few centimeters.

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How Sugarcane juice is Made

Evaporation

Extraction

Preserver mixing

Sugarcane is now grown all over the world. India stands first in
sugarcane cultivation, followed by Brazil, Cuba, China, Mexico, Pakistan, the
U.S.A., South Africa and Columbia.
This sugarcane juice will make a new area in beverage industries. It will be beneficial to all
classes of people. It has the fame over the world and we hope that it is just a matter of time that
sugarcane juice will be a prospect for our country.

19