`

BUSINESS PLAN
SINDHULIGADHI FRUITS PROCESSING PVT .LTD.
SINDHULI

Submitted to:
Agro Enterprise Canter (AEC)
Federation of Nepalese Chamber of Commerce and Industry

TABLE OF CONTENTS
DISCLAIMER.....................................................................................................................v
ACKNOWLEDGEMENT..................................................................................................vi
ACRONYMS AND ABBREVIATIONS..........................................................................vii
1. EXECUTIVE SUMMARY............................................................................................1
2. MATRIX OF REQUIREMENTS OF GOODS AND SERVICES RUNNING THE
PROPOSED ENTERPRISE................................................................................................2
2.1 FINANCIAL INDICATORS.................................................................................................................3
2.2 SWOT (Strength, Weakness, Opportunities and Threats) ANALYSIS.................................................3
2.3
TIMELINE OF ACTIVITIES (Year 2013-2014)..........................................................................4
2.4
KEY TO SUCCESS......................................................................................................................5

3. BACKGROUND INFORMATION.................................................................................6
3.1

INTRODUCTION.........................................................................................................................6

4. PRODUCTION PLAN AND SCALE OF OPERATION...............................................9

4.1 PRODUCTION PROCESS (FLOW CHART)....................................................................................9
3.2
The Technology...........................................................................................................................10
4.2 THE TECHNOLOGY........................................................................................................................11
4.3 PLANT LAYOUT.............................................................................................................................12
4.4
MARKETING AND DISTRIBUTION CHANNELS................................................................13
4.5 OBTAINING STOCKS AND MATERIALS......................................................................................14
4.6 PLANNED CAPACITY......................................................................................................................14
4.7 RAW MATERIALS AVAILABILITY AND ITS REQUIREMENT...................................................15
4.8 OPERATING CYCLE: (9 months).....................................................................................................16

5. MARKETING PLAN....................................................................................................17
5.1
MARKETING OBJECTIVES....................................................................................................17
5.2
COMPARISON WITH THE COMPETITORS..........................................................................18
5.3 TARGET MARKET AND CONSUMERS.........................................................................................19
5.4 DEMAND AND SUPPLY SITUATION OF JUNAR AND OTHER FRUIT JUICE.........................19
5.5
PRICING STRUCTURE.............................................................................................................21
5.6
PROMOTIONAL MEASURES..................................................................................................21
5.7
MARKETING STRATEGY.......................................................................................................22
5.8
PACKAGING AND MARKETING EXPENSES......................................................................23

6. ORGANISATION AND MANAGEMENT PLAN.......................................................24

6.1 ORGANISATION STRUCTURE.......................................................................................................24
6.2 ADMINISTRATIVE EXPENSES.......................................................................................................26
6.3 FACTORY EXPENSES.......................................................................................................................27
6.4 PRE-OPERATING ACTIVITIES........................................................................................................29

7. FINANCIAL PLAN......................................................................................................30
7.1 ASSUMPTIONS..................................................................................................................................30
7.2 FINANCIAL STATEMENTS..............................................................................................................31

8. ANNEXURE..................................................................................................................36
8.1 Financial projections for five years.....................................................................................................36
8.2 OVOP AND JUNAR (MANDARIN ORANGE)................................................................................38

References..........................................................................................................................42

List of Tables
Table 1: Details of Junar of two districts: Sindhuli and Ramechhap.........................................7
Table 2: Details of plants and machineries that will be used in the fruit processing...............11
Table 3: Production Target.......................................................................................................14
Table 4: Sales Forecast.............................................................................................................14
Table 5: List of Raw Materials (for 20 days a month).............................................................15
Table 6: Cost of Production......................................................................................................15
Table 7: A list of machineries and tools for Juice industry......................................................16
Table 8: Major brands of fruit juice available in Nepal...........................................................18
Table 9: Pricing and margin details at various level................................................................21
Table 10: Marketing expenses..................................................................................................23
Table 11: Salary details............................................................................................................26
Table 12: Details of other Fixed Asset (land & building, vehicles etc.) that will be used in the
fruit processing.........................................................................................................................27
Table 13:Depreciation of Fixed Assets.....................................................................................27
Table 14: Pre-operating expense..............................................................................................29
Table 15: Office Expenses - Fixed costs..................................................................................29
Table 16: Revenue from products...........................................................................................31
Table 17: Capital requirements................................................................................................31
Table 18: Financial investment and plan..................................................................................32
Table 19: Loan amortization....................................................................................................32
Table 20: Project Income Statement.........................................................................................32
Table 21: Project cash flow statement......................................................................................33
Table 22: Projected Balance Sheet...........................................................................................33
Table 23: Projected profitability...............................................................................................34
Table 24: Breakeven point........................................................................................................34
Table 25: Payback period and internal rate of return...............................................................34
Table 26: Working Capital Estimation.....................................................................................35

List of figures
Figure 1: Promoters of the company..........................................................................................1
Figure 2: Process Flow Chart.....................................................................................................9
Figure 3: Production process of Fruit juice..............................................................................10
Figure 4: Plant Layout..............................................................................................................12
Figure 5: Marketing and Distribution channel.........................................................................13
Figure 6: Import and export of various types of juice from Nepal..........................................19
3

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Figure 7: Import and export of Juice in Nepal.........................................................................20
Figure 8: Organ gram...............................................................................................................24
Figure 9: Breakeven point for period of five years..................................................................34
Figure 10: typical high-quality continuous processing line for juice concentrate from citrus
fruit...........................................................................................................................................41

List of Cases
Box 1: Potential of Sweet Oranges farming for local farmers.................................................17

DISCLAIMER
This Business Plan provides information that may be useful to the company in planning to
structure their juice business in Nepal. However, the facts and circumstance in each situation
are different, may be fluid and unpredictable thus advice may be sought on each specific
topic from the management consultants during implementation. Report is prepared based on
interaction and views expressed by company stakeholders. This report is specifically
designed for overall long-term visioning of the company and financial adequacy required the
company to invest in a long-term. Financial projections are estimated based on the current
market rates and so may vary later on.

ACKNOWLEDGEMENT
The study acknowledges the following personnel for their valuable contribution in preparing
this business plan.
AEC/FNCCI for providing opportunity and taking the initiative to prepare this business plan
of Sindhuligadhi Fruits Processing Pvt. Ltd. Special thanks go to Mr. Pradeep Maharjan,
CEO, AEC for his valuable contribution in overall support and guidance.
Mr. Suraj Baidya, President, FNCCI, and Mr. Deepak Koirala, Chairperson, Hilltop Junar
Processing Cooperative for providing their genial support to complete the business plan.
Last, but not the least Mr. Govinda Ghimire, President, NEPHHPA for providing with
valuable input, ideas, and feedback during the course of preparation of business plan, which
is highly appreciable.

ACRONYMS AND ABBREVIATIONS

APPSP

: Agriculture Perspective Plan and Support Project

Ml

: Millilitre

GDP

: Gross Domestic Product

CPP

: Community Private Partnership

FY
JICA

: Fiscal Year
: Japan International Cooperation Agency

CBS

: Central Bureau of Statistics

AEC

: Agriculture Enterprise Centre

VDC
OVOP
FNCCI

: Village Development Committee

: One Village One Product
: Federation of Nepal Chamber of Commerce and

HACCP
GMP
FAO
NFC
TEPC

Industry
: Hazard Analysis and Critical Control Process
: Good Manufacturing Practices
: Food & Agriculture Organization
: Not from Concentrate
: Trade & Export Promotion Centre

EBIT

: Earnings Before Interest & Tax

EBT
BEP
FC
VC
HA
MT

: Earning Before Tax

: Break- Even Point
: Fixed Cost
: Variable Cost
: Hector
: Metric tone

1. EXECUTIVE SUMMARY
Sindhuli Fruits Processing Pvt. Ltd. will be established in the Sindhuli district located 40 km
North from East-West highway with an aim to produce fresh juice from locally available
fruits mainly sweet orange, pineapple, bael and mango . As per different sources 27,409 tons
of junar fruits is available and there is a possibility of expansion with support from
government and donors support.
Plan sets a target of producing 2.1 million litres of junar juice generating revenue of NRs.
464.7 million in the fifth year with gradual increment in a percent of 15%, 20%, 30%, 40%,
50%.Similary, the revenue generated from pineapple, bael and mango juice in the fifth year
are 66 million from 150,000 litres, 147 million from 333,333 litres and 77 million
from175,000 litres respectively. For regular collection of raw fruits, there will be long-term
contractual agreement with the local farmers.
Company will be registered under the Company Act in Kathmandu registration office. It
will be managed and operated in partnership with community private partnership model.
Shares of company will be distributed in equal ratio with local community, district chamber,
corporate house and donors. (Refer to figure 1)
Distribution of Company Shares
Factory will be operated for nine months as per the
availability of fruits in long-term contractual agreement
with the local farmers who also represents the
shareholders of the company. This entails assured
supply of raw materials and credit facility. Minimum
level of high-tech processing machineries will be
installed meeting the GMP standard.

Figure 1: Promoters of the

Juice will be made available in a pet bottle in different

sizes (250, 500, 1 litre bottle and 1 litre pure) which

company
will be in a Ready to Drink (R2D) form. In th

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Kathmandu valley own distribution network will be established whereas in other locations
distributors will be selected for making products available.
Highly skilled twenty-two human resources will be hired to manage and operate factory and
administration/marketing of products and services.

Fixed

Summary of Investment:
NRs. 5,74,70,020

Working Capital

NRs. 179,97,844

Total

NRs. 7,54,67,864

Financial projections are elaborated in the report, which shows that there will be a total
capital requirement of NRs. 75.5 million (30 % owners equity and 70% loan investment).
Fixed capital requirement is Nrs. 57.5 million, and NRs. 18 million in working capital this
means high amount required for each batch for purchasing raw materials.
Return on Investment (ROI) and Return on Equity (ROA) is 65.51% and 32.74%
respectively in the first year. Break Even Point (BEP) is achieved within 54.48% of total
target sales of 0.17 million litres. Payback period, which is the cash benefits to pay the
original cost of an investment, is 2.20 years due to low investment in comparison with the
other investments. Refer to
.
Cost of production per litre of (R2D) juice is estimated to be NRs. 138.75 excluding
marketing, and administration costs and final MRP is NRs. 199 including all costs and profit
margins and cost of production of pure juice per litre is NRs .225 and final MRP is NRs.
299 . Costs shall be reduced gradually by increasing the production quantity and utilization of
automatic complete processing lines for processing citrus frui

2. MATRIX OF REQUIREMENTS OF GOODS AND SERVICES

RUNNING THE PROPOSED ENTERPRISE

Available

Required for Industry

Recommended Strategies

8 tons/day

Fresh Fruit

Collect from local farmers

Available

17

Local hiring

Medium Level

Juice processing and

Training from the machine supplier.

packaging
Need to purchase

Fruit weighing m/c

International purchase India

Fruit washing m/c

Domestic Purchase- Nepal

Fruit peeling m/c

Juice processing machine
Bottle and packaging machine

a. Government
fund.
b. Shareholders
c. Bank loan

Start-up capital :

Sourcing:

a. Fixed assets-

a. Government investment as

NRs.5,74,70,020
b. Running capital-NRs

subsidy 50%
b. Shareholders capital
c. Bank loan

1,79,97844
Domestic/ India

Total: NRs. 75467864

Domestic in the initial years

Make contract with domestic

and foreign

and other in long run.

buyers and international buyers.

2.1 FINANCIAL INDICATORS

BEP
ROI
IRR
Payback period

%
%
%
Years

31.2% (Avg of 5years)

70.9 %( Avg of 5years)
73.38%
2.20

2.2 SWOT (Strength, Weakness, Opportunities and Threats) ANALYSIS

Strengths

Weaknesses

Opportunities

Threats (Chances of
occurrence)

1. ODOP association with

the company might add
imagery benefits.
2. Financial support of
government for initial
plant setup.
3. Technical and Market
related support from Agro
Enterprise Center of FNCCI

1. Insufficient
marketing
knowledge.
2. Lack of
through
knowledge on
technology.
3. Lack of Skilled
manpower

1. Scope to be a
larger producer
of unique juice.
2. Expansion of
local and going
global
3. Government
support is
available for
enterprise
development.
4. Available low
cost technology.

1.Intense Competition
given by domestic
REAL juice produced
by DABUR NEPAL
PVT. LTD.
2. Loss of domestic
market because of
domestic and
international brands.
3. Strong price
fluctuations in the
market price.
4. High cost and
quality in reaching
international market.

2.3 TIMELINE OF ACTIVITIES (Year 2013-2014)

Activities

Year 2013

Year 2013

Year

May-Dec

Jan-Apr

2013/14
May-Aug

Company Registration
Land purchase
Building construction
Hire Staff
Equipment Procurement
Installation of equipment
Product testing and test runs on
site
Commercial operations

2.4 KEY TO SUCCESS

The keys to success are:

Establish processing plant and regular operation with the availability of local raw
materials.

The proportion of investment in raw materials is more (30%) compare to the fixed
capital that means company needs more working capital fund to operate regular
operation.

Operation modality of the industry on participation of community private partnership

model (CPP)

Involvement of business-savvy person in management of the company

Well-furnished infrastructure available and enabling environment with direct

involvement and support from community/Cooperatives groups

Innovative and competitive product of Sweet orange juice in Nepal as well as

International market too

Increase profit margin with the improved technology and professional management

Effective communication with the input suppliers, buyers and consumers

High production volume and use of improved modern technologies in industry

Increasing number of costumer of fresh juice in Nepal

3. BACKGROUND INFORMATION
Agricultural sector has been considered one of the most important sectors for the contribution
in Nepalese economy. It contributes about 38 percent of the Gross Domestic Product (GDP)
and employs about 65.6 percent of the economically active population (CBS. 2002).The Midhill region (1000-1500 m altitude) has a comparative advantage in the cultivation of citrus
fruits, especially sweet orange and mandarin compared to the traditional food grain crops
found more profitable. Due to having the potentiality for the production of sweet orange and
mandarin, these fruits are also imported in a large quantity to meet the growing demand of the
country. Citrus alone contributes about 26.81 percent of the total fruits production and its
estimate that Nepal imports 85 percent of its fruits consumption. However, during the
harvesting season citrus production is more than fresh demand.
Sweet orange, a significant number of citrus fruit family has been recognized as a very
potential agriculture commodity that may drive rural growth in some project districts under
AEC "One Village One Product'. Sindhuli Junar Development Association and Agriculture
Perspective Plan (APPSP) provided support to promote junar in Sindhuli and Ramechhap
districts. In addition, Japanese government, Embassy of Japan also supported 360 Mt.
capacity of cold storage house for junar.
3.1 INTRODUCTION
Junar cultivation started in Nepal since 1909 with very subsistence level. After that
government of Nepal, initiated citrus fruit development programme. Similarly, Nepal
government established citrus research centre in Dhankuta with technical support of JICA.
Junar fruit produced in Sindhuli with the support of JICA Expert in 1985 which seen positive
result for the commercial cultivation of sweet orange. Then in 1985, it was announced a Junar
production area.
Junar is a citrus species nutritious fruit. It is being commercially cultivated in 42 Village
Development Committee in Sindhuli and 6 VDC in Ramechhap' district. It is cultivated in
places with altitudes of 800 to 1300 meter along the Mahabharata range. It is one of the bestsuited areas for the commercially farming of sweet orange. Sweet orange starts bearing

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flowers in April and the fruit is ready from December and can be enjoyed until the end of
April.
There are now 14 commercial nurseries establishment for the junar promotion and extension
to provide improved varieties and quality saplings to farmers in Sindhuli district. Having this
important, AEC (Agriculture Enterprise Centre) has initiated to establish processing industry
of Junar fruits to add value in fruit product in Sindhuli district with targeting to bring
additional raw material (Fruit) from Ramechhap and its surrounding districts with its
programme OVOP (One village one product).
Sweet orange has commercially production mainly in Dhankuta, Sindhuli and Ramechhap
districts. The production of sweet orange increased marginally to 50,679 tonnes in the last
fiscal year from 50,518 tonnes in the previous year. The area where sweet oranges are grown
rose 2.94 percent to 4,089 hectares in the last fiscal year. The output of sweet orange jumped
to 50,518 tonnes from 27,846 to 27,846 tonnes in a decade.
Sweet oranges are grown on 4,089 hectares. Sindhuli is the top sweet orange producing
district. The district grew 15,258 tonnes of sweet oranges in 2010-11 followed by Ramechhap
with 12,151 tonnes.
According to agro experts, demand for fruits surpasses output. Nepal contains varied climatic
conditions suitable for growing fruits, and the area under cultivation is comparatively low.
Farmers are gradually involved in this sector and gain profit from selling it in the market. In
Sindhuli and Ramechhap, there is involved 4300 HHs and 30 cooperative in Junar production
and farming.
Table 1: Details of Junar of two districts: Sindhuli and Ramechhap

S.No.
1
2
3
4

Particulars
No. of Farmers HHs
involved
No. of Cooperative
No. of Farmers Groups
Junar cultivation area in
( Ha)

Production Area ( Ha)

5
Production in tons
6
Cooperative

District
Sindhuli Ramechhap

Note: It is estimated that there

3125

1,175

will be 10 to 15% increase in

28
13

2
11

production in Sindhuli and 5 to

1,500.5

1,087

742
12,481

970
12,125

10% in Ramechhap.
Source:

Interaction

with

chairperson of Hilltop Junar

It indicates that the production in the both districts seems potential for the commercial
production of junar and needs to add value with processing of fruits. Thus, having realizing
this fact Sindhuli Phalphul processing Pvt. Ltd. has taken initiation to establish the fresh
Junar processing industry in Sindhuli district with the support and involvement of FNCCI
(AEC) and private sectors with Private Public Partnership ( PPP) model.
Nepal produced oranges and sweet oranges worth NRs 11.50 billion in fiscal 2010-11, up
2.12 percent year on year. According to the Agriculture Ministry, production of citrus fruits,
particularly oranges and sweet oranges, reached 230,173 tonnes.
Similarly, the production of sweet orange increased marginally to 50,679 tonnes in the last
fiscal year from 50,518 tonnes in the previous year. The area where sweet oranges are grown
rose 2.94 percent to 4,089 hectares in the last fiscal year. The output of sweet oranges jumped
to 50,518 tonnes from 27, 846 tonnes in a decade. Sindhuli is the top sweet orange producing
district. The district grew 15,258 tonnes of sweet oranges in 2010-11 followed by Ramechhap
with 12,151 tonnes and Dhankuta with 2,300 tonnes.
According to government stats, the export of orange and sweet orange juice has been
growing. China and India are the major market for Nepali juice.
Japan embassy has supported to construct multi-storey cold storage building with capacity
storage of 250 metric tons for Junar, along with its electrification, and procurement of cooling
unit and essential equipment to run the facility. The unit was handed over to the Sindhuli
Junar Development Association.
Currently, the government provides a 75 percent subsidy on saplings of oranges, sweet
oranges and other citrus fruits. Availability of inputs and access to road networks have
encouraged farmers to grow fruits, says Chutraj Gurung, programme director of the Fruits
Development Directorate. Demand for fruits is a lot higher than supply. (Source:
Kathmandu post, 2012-01-04)

4. PRODUCTION PLAN AND SCALE OF OPERATION

Production plan is the first step of business operation plan. It describes the production process
of the product regarding on procurement of raw material system, processing technique,
quantity of product and using machine/technologies for the processing of the products.
4.1

PRODUCTION PROCESS (FLOW CHART)

The figures (2 and 3) below describe citrus fruit processing with the help of schematic and
logical flow chart.
Figure 2: Process Flow Chart

Collection of Fruits
Weighing/Grading
Peeling outer bark
Washing and disinfection
Crushing
Pulp separation
Homogenizing
Pasteurizing
Chilling section
Filling and packaging

10

Peeling m/c used to take out outer bark

Sorting and grading (B &C)

Cold storage
Proper cleaning using chemicals

Add equal quantity of treated water and sugar (50:50) in the pulp
Prepare citric acid (24 to 30 gm per kg) along with water and mix it in the pulp.
Fruits (Junar and others) are purchased from the Farmers groups or local agents at the predetermined price.
Prepare KMS (1 gm per kg) along with water and mix it.
For long lasting and preservation use pasteurization machine
Check the acid contents

Labeling , sealing and packaging bottle

Store in dry, cold and avoid direct sunlight and heat.

Washing & Disinfection

3.2 The Technology

Figure 3: Production process of Fruit juice

11

Pulp Separation

Mixing all Ingredients

4.2 THE TECHNOLOGY

Appropriate and improved technology is prerequisite
or necessaries for the processing of
Pasteurization
sweet orange industry in order to maintain the quality standard of the drink. In market, there
is available of various types of high-tech produced juices with providing due consideration of
consumer interest and demand with quality control. In this regards, company will adopted hiFilling and packaging

tech technology for manufacturing fruit juice in Nepal. The major machine and equipments
will bring from India and rest of the equipment, tools and accessories are bought from Nepal.

S. N.

Machinery and Equipment

Quantity

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

Fruit Weighing machine

Feeding cum sorting machine
Fruit Washer
Fruit Peeler
Fruit Miller/Crusher
Pulper machine
Filter machine
Homogenizing machine
Boiler
Pasteurizer
Refrigeration plant
Bottle Washing machine
Filling machine
Cap sealing and labeling
machine(packaging section)
Batch coding machine
CIP system
Water softening plant
Reverse osmosis system

1 No.
1 No.
1 No.
10 No.
1 No.
1 No.
1 No.
1 No.
1 Set
1 Set
1 Set
1 Set
1 Set
1 Set

Price(NRs.)

1 Set
1 Set
1 Set
1 Set
2,000,0000

Total

Table 2: Details of plants and machineries that will be used in the fruit processing

12

4.3 PLANT LAYOUT

Figure 4: Plant Layout

13

4.4 MARKETING AND DISTRIBUTION CHANNELS

The product reaches the consumer through the various marketing channels, i.e., distributor
and wholesaler to retailers. For international and neighbouring markets, agents will be
selected to reach their consumers. In the Kathmandu valley, marketing will be done through
own retail outlets and introduced as a Welcome drinks. In the other markets, distributors will
be selected based on the geography and coverage area.
In addition, the company will market directly of its product in market with their own
marketing representatives in selected geographical areas. It helps to company to understand
the market dynamic and gradually gain the experiences and good will of the company image.

National and International market

Distributorr
Company
Wholesaler

Retailer

CONSUME
R

Inside Kathmandu Valley and major cities

Figure 5: Marketing and Distribution channel

In order to maintain the intact quality of the juice technical person (food technologist) will be
hired for the overall quality control of the juice.
The Department of Food Technology and Quality Control (DFTQC) has set standards for
fruit juices sold in the Nepali market. The department has set standards for fruit pulps and
nectars contained in fruit juices. The highest pulp content at 18 per cent is required to make
juice from Prune. It has permitted the use of preservative citric acid at the rate of 3.5 per cent.
Nectar content has been set at 15 per cent in all fruit juices. It has permitted the use of 1.5 per
cent critic acid in the segment. As per the standard, sweetened juices must have sugar content
14

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between 15 gram per kg and 150 gram per kg. Food additives could be used as per the
guideline. However, permitted additives cannot be mixed. (Source: thehimalayantimes.com,
Publication date: 7/13/2010)

4.5 OBTAINING STOCKS AND MATERIALS

Junar fruits are seasonal fruits, which is not available in whole seasons. In order to run the
industry in full capacity it is needed to store the fruits in the wares-house for continuous
processing. However, it is worth to make pulp or concentrate and preserve it in an appropriate
and suitable place (container) to produce the juice recurrently as per need of market. This
technique is appropriate in terms of investment cost, operation and for fresh quality product
to serve in the market. It will produce the pure natural juice in the market.
4.6 PLANNED CAPACITY
As per the information available, it is estimated that there is a total of ten million litres of
juice consumed yearly in Nepal. Out of total, it is projected that the company will achieve
30% of its market share within five years. Production target and the sales forecast is provided
in the table below.
Table 3: Production Target
S. No.
1
2
3

Description
Total yearly demand of Juice
Target market share
Target production

Unit
Litre
%
Litre

Details
10,000,000
30
21,00000

Table 4: Sales Forecast

Capacity
Utilization

15 %

Fruits

Year 1
(ltr.)
Sweet orange
315,000

20 %

30 %

40 %

50 %

Year 2
(ltr.)
420,000

Year 3
(ltr.)
630,000

Year 4
(ltr.)
840,000

Year
5(ltr.)
1,050,000

90,000

120,000

150,000

Pineapple

45,000

60,000

Bael

100,000

133,333

200,000

266,666

Mango

52,500

70,000

105,000

140,000 175,000

15

333,333

4.7 RAW MATERIALS AVAILABILITY AND ITS REQUIREMENT

The total production of the sweet orange in Ramechhap and Sindhuli is 24,606 tons per year
and it is estimated to produce concentrated juice of 2100 tons, which needs 7000 tons of
fresh fruits. This industry will run at least 9 months per year. Moreover, the others available
fruit pineapple, bael and mango are also used as a raw material to produce the juice. The
quantity of pineapple, bael and mangoes to be converted to juice are 1000 tons,500 tons and
1000 tons respectively. However, there is no scientific inventory done on sweet orange in
both districts and depends on the source of District Agriculture Office (DAO) as per the sales
quantity. It is assumed that the raw material will be sufficient for junar processing industry
and it will be gradually expanding the cultivation area providing various technical as well as
financial services to promote sweet orange in its catchments areas. In addition, the industry
will produce the others fruits juice mainly using the pineapple for processing industry.
Table 5: List of Raw Materials (for 20 days a month)
S.N
.

Description
1
2
3
4
5
6
7
8

Unit

Fresh Fruits - Junar (grade B and C)

Transportation
KMS
Citric Acid
Pectin Powder
Sugar
Other Chemicals
Water (treated)

Quantity

Kg

Rate

2,025,000
2,025,000
562
1,425
1,125
67,500
200,000

Kg
kg
kg
kg

Amount
81,000,00

40
0.05
400
130
1,200
70
1

0
101,250
224,800
185,250
1,350,000
4,725,000
200,000

Remarks

dose: 1 gm for 1 litre

dose: 0.025%
dose; 11 to 12 %

87,786,30
Total

0
14,631,05

Bi monthly

Table 6: Cost of Production

FRUITS

Cost of 1 Litre
pure(NRs.)
Cost of 1 litre(R2D)
(NRs.)

Junar

225
138.75

Pineapp
le

Bael

Mango

225

225

225

138.75

138.75

138.75

16

RM collected for 6
months

4.8 OPERATING CYCLE: (9 months)

The industry will run commercially only for 9 months in a year. It is assumed that 9 months
period is taken as a one cycle in the whole year. The industry needs 1050 tons raw material
(fresh Junar fruit) to produce 315000 litters concentrate juice in a whole year in first year and
subsequently increase the production quantity at end of fifth year. Similarly, the industry
needs 150 tons of pineapple to produce 45000 litres of concentrated juice, 335 tons of bael to
produce 100000 litres of concentrated juice and 175 tons of mango to produce 52500 litres of
concentrated juice in the first year.
Table 7: A list of machineries and tools for Juice industry

S. N.

Machinery and Equipment

Quantity

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

Fruit Weighing machine

Feeding cum sorting machine
Fruit Washer
Fruit Peeler
Fruit Miller/Crusher
Pulper machine
Filter machine
Homogenizing machine
Boiler
Pasteurizer
Refrigeration plant
Bottle Washing machine
Filling machine
Cap sealing and labeling
machine(packaging section)
Batch coding machine
CIP system
Water softening plant
Reverse osmosis system

1 No.
1 No.
1 No.
10 No.
1 No.
1 No.
1 No.
1 No.
1 Set
1 Set
1 Set
1 Set
1 Set
1 Set

Price(NRs.)

1 Set
1 Set
1 Set
1 Set
2,000,0000

Total

17

5. MARKETING PLAN
Company will produce natural Not From Concentrate (NFC) fruit juice mostly from Junar
and other available fruits like pineapple, bael and mango from Sindhuli and Ramechhap
districts. Company has set a target with a market share of 30% within five years, and will be
positioned as a natural juice producers company in Nepal. There are few big companies
(Dabur, Chaudari, Dugar etc.) in the juice segment which has used high tech Tetra packaging
and there are other local companies such as Rijal Tashi, J. B foods etc., in both juice and
squash in Nepal.
5.1 MARKETING OBJECTIVES
The main objective is to sell natural juice of available citrus fruits in the districts and oil
extracts as by-products throughout the country as well as export market. The product will be
positioned in the mind of consumers as a natural product from our own garden and target to
health conscious Nepalese and tourist. Various imported fruit juices are available in different
brands, tastes, and sizes in the market.

Box 1: Potential of Sweet Oranges farming for local farmers

Mr. Gunda Bahadur Thakuri of Tinkanya Village Development Committee (VDC) of Sindhuli district
earned NRs. 150,000 by farming sweet oranges. From the last 20 years, he has been engaged in farming
sweet orange. He said that this has not only helped to sustain his livelihood, but also has helped to
improve his living standard. He said, he has been farming this fruit in 11 Ropani of land. "But we are
forced to take our products to the district headquarters for sale due to lack of market in the locality."
Various traditional crops like paddy, maize, wheat are also produced in the village. However, sweet
orange is the main source of income among villagers. The district is feasible for farming sweet orange.
Sweet Oranges Development Association informed that nearly one dozen of VDCs including Baseshwor,
Tinkanya, Jalkanya, Ratanchura, Majhuwa, and Bitijor are suitable areas for farming sweet oranges.
According to the association, farming of sweet orange has covered around 1, 505 hectares of land in the
district. A total of 8,400 tons of sweet orange has been produced from 750 hectares land. Deepak Koirala,
president of the association, said that farmers have been able to generate the income of Rs. 134.4 million
from farming of sweet orange.
Source: Sindhuli ( Deepak Koirala)

18

`
5.2 COMPARISON WITH THE COMPETITORS
Sweet orange is mainly available in Ramechhap' and Sindhuli districts that are widely known
for their quality in terms of flavour, juice content, colour, and sweetness. Accurate data on
quantity of the sweet orange is not available, but a rough estimate indicates that 98 percent is
freshly sold and the remaining 2 per cent is processed. There are two large-scale processing
companies (Rijal Tashi and J.B food) established in Itahari, Sunsari one of the largest
companies processed 400-500 tons. They import 70 percent of oranges and only 30 percent is
fulfilled by low grade.
It indicates that there is a high scope of sweet orange in the national market as well as
Table 8: Major brands of fruit juice available in Nepal
Brand Name

Country

Packaging details

international

MRP prices in
NRs for each
200 ml

Artificial
substance

Ceres

S. Africa

Tetra / 200ml

55

100% juice

Liqui Fruit

S. Africa

Tetra / 200ml

52

100% juice

Pokka

Singapore

Can / 300ml

33

Fruit drink

Real

Nepal

Tetra / 200ml

25

Fruit drink

Fruti

Nepal

Tetra / 200ml

25

Fruit drink

Rio

Nepal

Tetra 200ml

25

Fruit drink

Bangladesh

Can/200 ml

45

Fruit drink

Red bull

Thailand

Can/200 ml

55

Energy drink

Berri

Australia

Tetra/1 liter

55

Fruit drink

Paran

market

with adding value in the

products.
orange

If
juice

sweet
will

produce in a natural
form and certified in
organic production, it
keeps highly competitive
in

the

international

market and get premium price. However, at present there are various types of fruit juice
available in the market such as Rio, Cares, Pokka, Real, Paran, Red bull etc., which are
imported from other countries. It is estimated that Nepal imports various juice from
international market, which is nearly NRs. 73.9 Million rupees and exported Nrs. one billion
(fruit and juice). (Source: TEPC 2009-10)
In addition, processing companies in Nepal can produce juice at comparatively low costs then
the imported ones due to availability of raw materials at cheaper price. For example,
Ramechhap and Sindhuli districts alone have sufficient production of sweet orange.

19

`
5.3 TARGET MARKET AND CONSUMERS
Sindhuli Phalphul Processing Company will target the medium level economic status of the
consumer due to slightly high price comparatively to other juice products in market. The
targeted market will divide into two categories as per the production planning and during the
course of time. At the initial period, it will focus its market at regional and national level
(Sindhuli, Biratnager, Itahari, Dharan, Birtamod, Birganj, Narayangadh, Pokhara and
Kathmandu) market. Then, it will gradually expand and coverage the market in India and
others potential international market after getting market feedback from consumer. It is also
assumed that the Junar juice (Sweet orange) will cover 30 percent market in juice industries
in Nepal in at the end of its fifth year.

5.4 DEMAND AND SUPPLY SITUATION OF JUNAR AND OTHER FRUIT JUICE
As per the export and import data, total volume of juice business in Nepal is estimated to be
one billion Nepalese rupees, which is 10 million litres assuming per litre of juice is NRs.
100. Few varieties of juice mostly dominated by orange, pineapple, grape, apple, tomato etc.,
is available in the market.

20

`
There is a growing demand of processed fruit juice that meets consumer expectations in
comparison with the imported products. Import has decreased by 19% from 111 to 90 million
from 2011. As per the source juice traded are apple juice, frozen orange juice, grape juice,
Import and Export of various types of Juice

grapefruit

(including

pomelo) juice, Juice of any

Amount in NRs. million

other single citrus fruit,

Juice of single citrus fruit,
mixture of juices, orange
Juice,

orange

juice

not

frozen, pineapple juice, and

tomato

juice.

urbanisation

Due

there

is

to
a

importation of juice in high

quantity
Figure 5: Import and export of various types of juice from Nepal
Source: TEPC website www.tepc.com.np

Singapore,

from

India,
Malaysia,

Thailand, Australia etc. and

consumer are used to it. There is a possibility of replacing imported juice by locally available
fruits juice if the same quality if maintained.
Importofand
"Nepal has a juice market
Rs.1Export
billion of Juice
Amount in NRs. million

Source: TEPC website www.tepc.com.np

($16 million)," says Udayan Ganguly,

chief of Dabur Nepal. "Because of the
government's encouraging policies, it is
growing at a rate of 35 percent."

Figure 6: Import and export of Juice in Nepal

Source: TEPC website www.tepc.com.np
- Export amount has increased by 350% from NRs. 187 to 800
million
- Import amount has decreased by 19% from NRs. 111 to 90 million

21

5.5 PRICING STRUCTURE

Pricing structure is analysed based on the financial calculation, which will have an overall
impact on revenue and profitability of the company. Products will be made available in three
sizes of pet bottles: 250 ml, 500 mil and 1 litre. The pricing structure is provided below.
Table 9: Pricing and margin details at various level
Details for all fruit juice

Packing in three sizes of pet bottle

250 ml
500 ml
1 litre(R2D)

1 litre (pure)

Company:
Cost of production in NRs.

26.25

75

Factory selling price in NRs.

30

80

14

23

10%

10%

10%

Margin in NRs.
Profit in %

10%

138.75
140

225
230

Distributor:
Distributor selling price in NRs.
Margin in NRs.
Profit in %

33

88

15

15%

154
30

17%

18%

253
49
19%

5.6 PROMOTIONAL MEASURES

Junar juice is a new product comparatively to others juice/squash product in the market. Most
of the consumers are not aware regarding the juice of sweet orange and its taste. As a new
product, promotional measure/push marketing strategy will adopt with creating split identity
of junar logo and raising the awareness among the consumer about its benefit and health
22

`
perspective to compete in the market. With using various types of product testing campaign,
mass electronic and print media will be used for the promotional affairs. Feedback collection
and response from the consumers will be collected from different market places using
electronic media as well as key informants interview with retailers, consumers wholesaler
etc., to understand the perception and market response of the product simultaneously. The
following promotional measures are outlined.

Advertisement through mass communication

Organize various market campaign and testing

Participate in National and International exhibitions

Keep in hoarding board in main city centre and highway ( 100-150 pieces)

Advertisement from FM ( national level)and television

Leaflet

Brochure

Article in newspaper and monthly magazines

Documentary

Seminar, press conference

5.7 MARKETING STRATEGY

Marketing of the product at present competitive market is very sensitive and it has cut
through competition at present. However, for the continuous supply of the product with
appropriate channel in timely is crucial for the medium size enterprises. Establishing a longterm supply channel at the input, production and sales and marketing is vital for new product
to penetrate into the market. There are many success cases in various countries that need to be
educated and raise awareness by organizing workshop and communicating to a larger
audience through media about its benefit and how country can benefit in a long run. Initially
for a certain period, there will be a challenging task to motivate the consumers about this
benefit and advantages from health perspective but after using it will win the trust of the
consumer.
The role of government is crucial for the sustainable operation of the agriculture base
processing industries in Nepal. The government should give special facilities and subsidies to
23

`
rural enterprises for the initials period. In addition, it should give especial consideration for
the promotion of the product in international market and should play the facilitative role with
creating conducive enabling environment from the government.

5.8 PACKAGING AND MARKETING EXPENSES

Table 10: Marketing expenses

S.N.
A

Packaging

Description

Amount(NRs.)

Bottle 250 ml Pet

32,471,994

Bottle 500 ml Pet

5,903,999

Bottle 1 litre (Pet)

6,149,999

Bottle 1 Litre pure(Pet)

4,099,999

Cartoon(250 ml)

Cartoon(500 ml)

Cartoon( 1 ltr. Pure)

Cartoon( 1 ltr.)

307,500

Total

B Promotion

2,460,000
546,667
820,000

NRs. 52,760,156
Marketing and Advertisement

Website

Campaign

FM radio

Free Distribution

NRs. 29,093,338

Campaign

Total

NRs 29,093,338

24

6. ORGANISATION AND MANAGEMENT PLAN

Company will be registered under the company register office, Kathmandu and run under the
company act. The company will be overall managed
by the company managing director who will
responsible for administration and marketing sector of

Representation of key stakeholders with 3

members each in the management
committee of Junar enterprise

the company with supporting staffs separately for

commercially operation of factory. The owner of the

1.
2.
3.

4.

industry will be its shareholders who invest money.

Private entrepreneur(s)
FNCCI
District chamber
Junar Federation representing
district level cooperatives

The management committee will be formed with representing nine personnel representing
from FNCCI-3, DCCI- 3 and Farmers association/cooperative-3. There will be initially 17
employees in the company.
6.1 ORGANISATION STRUCTURE
The organizational structure is given below to perform the activities/task of the company with
three functional areas (Marketing section, Production and quality control section and
Administrative and Account section). Roles and responsibilities of team members are
described below
List of organisational human resources and their roles & responsibilities:

Shareholders:

Shareholders of the company should purchase the share of

minimum NRs.10,000 per person who are commercially
farming of sweet orange. In addition, institutional share will be
sold to the cooperatives and associations of minimum
NRs.100,000.

25
Figure 7: Organ gram

`
Advisory Team

An advisory team will be formed comprising of District

Agriculture Office, District Cottage and small Industries
Development Office, District Chamber and Commerce,
Agriculture Enterprise Centre and representative from farmers
cooperative/

Association

from

the

district.

They

give

suggestions at the time of critical decisions to be made by the

Management Committee

company.
A management committee will be formed with representation
from the stakeholders. Detail company policy will guide the
roles and responsibilities of this committee.

Managing Director

Company will be managed by a Managing Director for regular

operation and strategic direction towards betterment of the
company.
Planning daily operation and marketing activities

Marketing

&

representative

Sale Ensure regular planning of marketing activities and budgeting

Marketing strategies as per the company progress
Generation of marketing information
Maintain rapport building with the dealers, wholesaler and other
stakeholders.

Production

&

control technician

quality The overall role of production and quality control technician will
be produced the juice in a qualitative standard. He should have the
knowledge on fruit processing and able to operate factory.

Administrative & Account An administration and account manager will be responsible for
section / Accountant

account keeping and planning of financial details.

Manage store and inventory of raw materials and others

26

`
Office Assistant

Support administration and account manager.

6.2 ADMINISTRATIVE EXPENSES

The following human resources as provided in the table below are planned with the expected
expenses.
Table 11: Salary details
S.N
.

1
2
3
4
5
6
7
8
9
10

Description
Staff

Number

Production:
Chief Executive officer
Assistant manager
Food Technician
Accountant
Storekeeper
Office assistant
Electrician
Technical supervisor
Helper and Security
Labour
TOTAL

1
1
1
1
1
2
1
1
2
6
17

27

Year 1
Salary P. M.
60,000
30,000
50,000
25,000
15,000
10,000
15,000
25000
9000
9000

Total
780,000
390,000
650,000
325,000
195,000
260,000
195,000
325,000
234,000
702000
4056000

6.3 FACTORY EXPENSES

Factory expenses includes all fixed asset investment, cost of labours and day to day regular
operation expenses i.e., electricity and water, repair maintenance, telephone and
transportation of vehicle.

Table 12: Details of other Fixed Asset (land & building, vehicles etc.) that will be used in the fruit
processing.

Fixed assets

Amount

Land

20,000,000

Building

9,500,000

Machinery and equipment

20,000,000

Furniture & fixture

600,000

Office Equipment

300,000

Generator

1,525,500

Inverters

150,000

Water Supply and Storage tank

400,000

Vehicle

4,425,000

Transformer

569,520

Total

57,470,020

Table 13:Depreciation of Fixed Assets

Fixed Assets
Building
Machinery and equipment
Furiniture and fixture
Office Equipment

Amount

Rate

Depreciation

9,500,000

5% 475,000

20,000,000

15% 3,000,000

600,000
300,000

Generator

1,525,500

Inverters

150,000

28

25% 150,000
25% 75,000
15% 228,825
25% 37,500

Water Supply Storage tank

Vehicle
Transformers

400,000

20% 80,000

4,425,000

20% 885,000

569,520

20% 113,904

Total

5,045,229

29

6.4 PRE-OPERATING ACTIVITIES

Pre-operating activities includes registration of the company, preparing business plan and
orientation to all the staffs about the long-term plan of the company with the vision, mission,
goal, and objectives.
Table 14: Pre-operating expense

Pre operating Cost

Amount

Training Cost

100,000.00

Research and development

200,000.00

Total

300,000.00

Table 15: Office Expenses - Fixed costs

Total Fixed Overhead

Costs(NRs.)

Marketing and Advertising cost

29,093,338

Travel & Conveyance

600,000

Fuel (transportation)

1,854,000

Telephone & postage

168,000

Newspapers & Magazines

18,000

Office and Plant Maintenance

1,112,101

Printing and Stationary

120,000

Utilities

300,000

Total Fixed Overhead

33,265,439

Total overhead expenses

88,033,276

30

31

7. FINANCIAL PLAN
Financial plan are prepared based on assumptions made and includes statements of revenue,
cash flow, break even etc., which is described below.
7.1 ASSUMPTIONS

a. Financial projection of the company is based on sales of fresh concentrate juice,

reaching target of 21,00,000 litres - this aspect is considered to be the major factor in
maintaining profitability and sustainability of the company. There is a possibility of
production of oil extraction from peeling outer barks, which will generate additional
cash income.
b. Total sales and demand have been projected on forecasted trends
c. Total 17 numbers of staff will be hired over a period of 4 years. There will be revision
of salary every year.
d. Fixed assets have been planned to be invested in land, building, machineries,
furniture, equipments, and vehicle. Details are given more in details.
e. Depreciation of fixed asset is calculated straight line method with depreciating rates
of Building 5%, plant and machinery 15%, and furnitures and equipments 25%.
f. For the purpose of calculation of working capital, following assumptions has been
made

Inventory of raw fruits have been assumed to be 30 days

Account receivable to be collected in 15 days

Advance money to be paid to farmers for 30 days

Cash in hand for 30 days to be required

32

`
7.2 FINANCIAL STATEMENTS
All projected statements: revenue, total capital structure, financial investment plan, loan
amortization, pricing, project income statement, project cash flow, balance sheet, project
breakeven point, profitability, payback period etc., are tabulated below.

Table 16: Revenue from products

Products
Volume
Year 1
Junar

Pineapple

Bael

Mango

Year 2

Year 3

Year 4

Year 5

1 Ltr. Pure
1 Ltr. (R2D)
500 ml bottle
250 ml bottle

28,350,000
26,223,750
17,010,000
47,628,000

38,178,000
35,314,650
22,906,800
64,139,040

60,130,350
55,620,574
36,078,210
101,018,988

84,182,490
77,868,803
50,509,494
141,426,583

110,489,518
102,202,804
66,293,711
185,622,390

Total(NRs.)

119,211,750

160,538,490

252,848,122

353,987,370

464,608,424

1 Ltr. Pure
1 Ltr. (R2D)
500 ml bottle
250 ml bottle

4,050,000
3,746,250
2,430,000
6,804,000

5,454,000
5,044,950
3,272,400
9,162,720

8,590,050
7,945,796
5,154,030
14,431,284

12,026,070
11,124,115
7,215,642
20,203,798

15,784,217
14,600,401
9,470,530
26,517,484

Total(NRs.)

17,030,250

22,934,070

36,121,160

50,569,624

66,372,632

1 Ltr. Pure
1 Ltr. (R2D)
500 ml bottle
250 ml bottle

8,999,991
8,324,992
5,399,995
15,119,985

12,119,988
11,210,989
7,271,993
20,361,580

19,088,981
17,657,307
11,453,389
32,069,488

26,724,573
24,720,230
16,034,744
44,897,283

35,076,002
32,445,302
21,045,601
58,927,684

Total(Ns.)

37,844,962

50,964,549

80,269,165

112,376,831

147,494,590

1 Ltr. Pure
1 Ltr. (R2D)
500 ml bottle
250 ml bottle

4,725,000
4,370,625
2,835,000
7,938,000

6,363,000
5,885,775
3,817,800
10,689,840

10,021,725
9,270,096
6,013,035
16,836,498

14,030,415
12,978,134
8,418,249
23,571,097

18,414,920
17,033,801
11,048,952
30,937,065

Total(NRs.)

19,868,625

26,756,415

42,141,354

58,997,895

77,434,737

193,955,587

261,193,524

411,379,800

575,931,720

755,910,383

Total

Table 17: Capital requirements

TOTAL CAPITAL

Amount

Fixed capital

57,470,020

Pre-operating expenses

300,000

Working capital

17,997,844

Total Capital

75,767,864

%
75.9
1.7
22.4

33

Table 18: Financial investment and plan

Particular

Equity

Loan

Total
Percentage

23,079,01 32,970,02
9,891,006
4
0
30%
70%
100%

Woking Capital

8,998,922

Total
Percentage

32,077,93 50,967,86
18,889,928
6
4
37%
63%
100%

8,998,922

Total

17,997,84
4

Interest
rate

12.50%

12.50%

Table 19: Loan amortization

Year

Outstanding
loan

Interest

Principal

Total
installment

1 23,079,014.00

2,884,876.7
5

3,596,957.5
5

6,481,834.30

2 19,482,056.45

2,435,257.0
6

4,046,577.2
4

6,481,834.30

3 15,435,479.21

1,929,434.9
0

4,552,399.4
0

6,481,834.30

4 10,883,079.81

1,360,384.9
8

5,121,449.3
2

6,481,834.30

5 5,761,630.49

720,203.81

5,761,630.4
9

6,481,834.30

Table 20: Project Income Statement

34

Table 21: Project cash flow statement

Table 22: Projected Balance Sheet

35

Table 23: Projected profitability

Year 1

Year 2

Year
3

Year 4

Year
5

Avera
ge

ROA

32.74%

36.73%

44.77
%

42.81%

37.90
%

39.0%

ROI

65.51%

67.52%

85.90
%

75.39%

60.27
%

70.9%

Year 1

Year 2

Year
5
16.30
%

Avera
ge
31.2
%

Particulars

Table 24: Breakeven point

Years

BEP

54.48%

40.50%

36

Year 3
26.21
%

Year 4
18.27%

`
60.00%
50.00%
54.48%
40.00%

40.50%

30.00%
26.21%

20.00%
10.00%
0.00%
Year 1

Year 2

Year 3

18.27%

16.30%

Year 4

Year 5

Figure 8: Breakeven point for period of five years

Table 25: Payback period and internal rate of return

Year Cash Flow

0 1
2
3
4
5

NPV
I
RR

57,770,020
2,539,465
38,930,128
82,240,883
137,612,440
193,442,132
Rs. 252,604,529

57,770,020
2,539,465
41,469,593
123,710,476
261,322,916
454,765,048

57,770,020
55,230,555
16,300,427
65,940,456
203,552,896
396,995,028

73.38%
2

0.20
2.20

PBP

Years

Table 26: Working Capital Estimation

Day
s
Raw
material
Inventory
Work in
process
Inventory
Finished
products
Inventory
Account
receivabl
es
Cash For
One

Year 1

Year 2

Year 3

Year 4

Year 5

1 442,525

554,146

800,823

1,051,985

1,341,801

1 442,525

554,146

800,823

1,051,985

1,341,801

15 6,637,871

8,312,195

12,012,34
5

15,779,77
7

20,127,00
9

15 6,637,871

8,312,195

12,012,34
5

15,779,77
7

20,127,00
9

37

Months
Total
Working
Capital

3,837,053

9,039,029

12,433,37
6

15,623,49
6

19,585,02
0

17,997,84
4

26,771,71
2

38,059,71
1

49,287,02
0

62,522,63
9

38

8. ANNEXURE
8.1 Financial projections for five years
Products

Year 1

Junars (in kg)

1,0
50,000

Year 2

Year 3

1,400,000

2,100,000

Year 4
2,800,000

Year 5
3,500,000

Junar juice
(in liters)
Junar juice
pure (lts)
Junar juice
RTD (lts)

315,000
126,
000
189,
000

420,000
168,0
00
252,0
00

630,000
252,
000
378,
000

840,000
336,
000
504,
000

Pineapple (in
kg)

100,000

133,333

200,000

266,667

333,333

120,000
48,
000
72,
000

150,000
60,
000
90,
000

1,050,000
420,000
630,
000

Pineapple (in
liters)
Pineapple Pure
(lts)
Pineapple RTD
(lts)

45,000
18,
000
27,
000

60,000
24,0
00
36,0
00

Bael (in kgs)

50,000

66,667

100,000

133,333

166,667

Bael (in lts)

100,000
40,
000
60,
000

133,333
53,3
33
80,0
00

200,000
80,
000
120,
000

266,666

333,333
133,
333
200,
000

175,000

233,333

350,000

466,667

583,333

105,000
42,
000
63,
000

140,000
56,
000
84,
000

175,000
70,
000
105,
000

Bael- Pure (lts)

Bael- RTD (lts)
Mango (in
kgs)
Mango (in
lts)
Mango-Pure
(lts)
Mango- RTD
(lts)
Total (Yearly)
in lts.

52,500
21,
000
31,
500

90,000
36,
000
54,
000

70,000
28,0
00
42,0
00

106,667
160,
000

512,500

683,333

1,025,000

1,366,666

1,708,333

1,424

1,898

2,847

3,796

4,745

Pure juice
total

205,000

273,333

410,000

546,667

683,333

RTD juice
total

307,500

410,000

615,000

820,000

1,025,000

1,375,000

1,833,333

2,750,000

3,666,667

4,583,333

Total (Daily)
in lts.

Total yearly
in kgs

39

Projected profit and loss statement

Projected cash flow statement

40

Production in litres according to capacity Utilization

41

`
8.2 OVOP AND JUNAR (MANDARIN ORANGE)
Junar is another product selected under OVOP Program. Ramechhap and Sindhuli district are
famous as Junar producing region. Therefore, the program has selected these two districts to
develop Junar particularly focusing on improving its marketing side through quality
improvement and value addition in the products.
The program aims at improving the internal markets in primary stage and then to export
promotion developing its own brand with OVOP Nepal tag. With this prime objective, the
program has selected two VDCs from each district i.e. Okhreni and Sukahjor in Ramechhap
and Baseswor and Ratnachura in Sindhuli as the Junar villages.
The program has given special attention to develop the existing Junar orchard in the selected
VDCs because the program has its own norms and value that no quality product is possible
without improving the orchard condition. For the betterment market management, the
program has also formed to Junar Cooperatives in each district. The program has also
provided post harvest training to the farmers and the Cooperative's staffs, developed grading
machine and the packaging boxes for "A" grade Junar. Finally, "A" grade Junar of both
Ramechhap and Sindhuli have been marketed in Kathmandu market and other major markets
in the chain.
The tabular information below highlights the current situation of Junar program after
launching the OVOP program in Nepal.
District: Ramechhap
Particular
1. Junar Area (ha)
a. Okhreni
b. Sukajor
2. Fruiting Trees (ha)
a. Okhreni
b. Sukajor
3. Junar Production (MT)
a. Okhreni
b. Sukajor
4. "A" Grade Junar Sales
a. Okhreni
b. Sukajor
5. Farmers benefitted
a. Okhreni
b. Sukajor
6. Farmer Group formed
a. Okhreni

Position in

Position in

Target

2063/64

2064/65

2065/66

44.83
23.53

50.41
25.90

55.45
28.50

19.80
11.90

21.80
13.09

23.95
14.40

217.78
130.90

239.80
144.00

263.45
158.40
16 MT

142
97
6

42

Remarks

Total of 2 VDCs

`
b. Sukajor
7. Cooperative Formed
a. Okhreni
b. Sukajor
8. Farm gate Price/Kg
a. Okhreni
b. Sukajor

4
1
Rs. 10/kg
Rs. 10/kg

District: Sindhuli
Particular
1. Junar Area (ha)
a. Baseswor
b. Ratanchura
2. Fruiting Trees (ha)
a. Baseswor
b. Ratanchura
3. Junar Production (MT)
a. Baseswor
b. Ratanchura
4. "A" Grade Junar Sales
a. Baseswor
b. Ratanchura
5. Farmers benefitted
a. Baseswor
b. Ratanchura
6. Farmer Group formed
a. Baseswor
b. Ratanchura
7. Cooperative Formed
a. Baseswor
b. Ratanchura
8. Farm gate Price/Kg
a. Baseswor
b. Ratanchura

Position in

Position in

Target

2063/64

2064/65

2065/66

30
30

40
35

50
45

25
17

35
25

42
28

400
272

596
425

735
490

50
12

200
25

280
40

29
30

65
40

140
50

1
1

2
2

4
4

Rs. 8 10
Rs. 8 - 10

Rs. 10 15
Rs. 10 - 15

Rs. 13 25
Rs. 13 25

Source: Ganesh Shakya, OVOP Secretariat, AEC/FNCCI

43

Remarks

Source: Alfa laval

Machineries used are: 1. Washing, inspection and conveyor equipment, 2. Peel oil recovery system, 3. Juice
extraction system, 4. Disk stack centrifuge, 5. AlfaTherm pasteurizer, 6. Finisher, 7. Alrox de-aerator, 8.
Vap cassette evaporator 9. Alvac aroma recovery system, 10. BaseLine/FrontLine plate heat exchangers, 11.
Standardization tanks for concentrate, 12. Cold filling station, 13. SteriTherm pasteurizer, 14. Aseptic bag-indrum filler, 16. AlCip cleaning module, 17. Flow handling and tank cleaning equipment, 18. Control and
automation systems
Figure 9: typical high-quality continuous processing line for juice concentrate from citrus fruit

44

References

Himal Newspaper

Alfa Laval

Kathmandu Post, January 4, 2012 - Orange output reaches Rs 11.50 billion

Orange Value Chain Report- Full Bright Consultancy Pvt. Ltd.

Sweet orange farming, OVOP, FNCCI, 2065

45