INTRODUCTION

India is developing country so far as the industrial development

is concerned. As per as our Marathwada region is concerned

Government of Maharashtra willing to establish rapid industrial

development in Marathwada.

Government of India (GOI) has announced a number of

monetary incentives and relief to encourage commercialization and

value additions to agricultural produce. India's diverse agro climatic

conditions and also wide-ranging and large raw material availability

throughout the year are suitable factors for the growth of food

processing industry.

No industrial license is required for almost all of the food &

agro processing industries except some items. Use of foreign brand

names is now freely permitted. Capital goods can now be freely

imported, including the second hand machinery in the food-processing

sector. Moreover, excise as well as import duty has been substantially

reduced and export linked duty free imports is also allowed. At

present, value addition is made only in small percentage of

agricultural produce, especially in fruits and vegetables. Even though

India is the second largest producer of fruits and vegetables, wastage

and value loss is very high. Primary food industry is a major industry

in India with thousands of bakeries, traditional food units, and fruits,

vegetable & spice processing units.

Packaged food products are slowly penetrating the large Indian

market of growing segment of middle class. The size of these semi-

processed, ready-to-eat food segments of bread, biscuits, bakery

products, chocolates, Soya based products, ready-to-eat pasta

products, etc. The busy life in Metropolitan and urban areas have

given boost to food processing industry in India. Ready to eat and fast

food parlors are expanded all over the country and abroad.

One of the most important fruits in India - banana occupies

about 30 thousand hectares area with an annual production of about

47.72 thousand tones while Maharastra accounts for the highest

production of bananas in the country. The other banana producing

states are Tamilnadu, M.P., Kerala and Orrisa.

Generally banana is consumed as a fruit. It is very cheap

as compare to other fruits. So the fruit can be eaten by people who are

very rich and poor because of its less price and also it contains
carbohydrates, vitamins, proteins, minerals etc. Banana is also called

as poor family’s fruit.

A rich and nutritious source of energy producing food, banana

contains about 24.0% Carbohydrate, 1.3% protein, 0.4% fat, 0.8% ash

& 73.5% water and a reasonable amount of vitamins A, B & C. It is

consumed in several varieties of preparations and forms. When raw, it

is used as a vegetable for cooking purposes and is easily digestible.

When it gets ripe, the pulp gets soft, sweet and has a pleasant aroma.

The various commercial products, which can be made out of banana,

are chips/wafers, pulp, juice, powder and figs.

The fruit and vegetable processing activities have been set up, or

have to be established in developing countries for one or other of the

following reasons:

• diversification of the economy, in order to reduce present

dependence on one export commodity;

• government industrialisation policy;

• reduction of imports and meeting export demands;

• stimulate agricultural production by obtaining marketable

products;
• generate both rural and urban employment;

• reduce fruit and vegetable losses;

• improve farmers' nutrition by allowing them to consume their

own processed fruit and vegetables during the off-season;

• generate new sources of income for farmers/artisans;

• develop new value-added products.

 PRODUCT AND ITS IDETIFICATION

One of the most important fruits in India - banana occupies

about 30 thousand hectares area with an annual production of about

47.72 thousand tones while Maharashtra accounts for the highest

production of bananas in the country. The other banana producing

states are Tamilnadu, M.P., Kerala and Orrisa. Total production of

banana in world was 47660 thousand tones in 1991.

Fruit products are now a days have very demand in the market.

But banana is very much demand because it is a common man fruit.

The products of banana are of various types namely Banana

wafers/chips, Banana figs, Banana pulp, Banana juice etc.

The banana processing industry, producing banana figs, banana

chips and wafers is gaining wide importance in the present food

industry. Dehydrated ripe bananas popularly known as banana figs

manufactured in the small and cottage scale sectors are quite prevalent

and popular as snack foods at tea stalls, restaurants, railway stations

and tourist places in different parts of the country. Banana wafers and

chips are a popular snack food, especially in the southern states of

Kerala and Tamil Nadu.

 As my project is concerned products are Banana chips / wafers,

Banana powder etc. which contains vitamins, minerals and fruit is rich

source of energy. I select this project because of easily availability of

raw material in our region i.e. Nanded, Parbhani, and Hingoli districts.

Banana is one of the important fruit from Nanded, Parbhani and

Hingoli districts. There is large scale cultivation of banana crop

particularly in Basmat Tq. in Hingoli districts and Ardhapur,

Malegaon in Nanded districts. Bananas are cultivated throughout these

three districts. So raw material is easily available.

Previously banana was only seasonal crop but now days it is

available throughout year i.e. in any season.

 MARKET AND ITS POTENTIAL

1. The Product Uses and Its Market Potential:

Banana is a rich and nutritious source of energy producing food.

Banana contains about 24.0% Carbohydrate, 1.3% protein, 0.4% fat,

0.8% ash & 73.5% water and a reasonable amount of vitamins A, B &

C.

Banana powder is used chiefly in the baking industry for the

preparation and fillings for cakes and biscuits and is also used for

invalid and baby foods. Banana powder can be used in bakery and

confectionery industry. It is also used in the preparation of beverages

of the malted milk type and ice cream preparation. Banana powder is

prepared from pulp of fruits after mashing and drying in a drum or

spray driers. Then dried product is pulverized and passed through a 20

mesh sieve. It is effective in the treatment of coeliac, disease, sprie

and other forms of carbohydrate intolerance in children. The keeping

quality of food materials is greatly improved by the reduction in their

water contents. The demand of banana powder is increasing day by

day due to its end uses industry. There is bright scope of this unit. Any

entrepreneur can invest in this project. There is a good marketing

scope in the metropolitan cities.

 Banana chips are used mostly as snack food. Banana is one of

the richest iron source green vegetables. It can be preserved for three

months or more by reducing moisture in it. This may be done by

drying procedure or frying procedure. This is preserving art of green

vegetable for long time. Banana wafers are consumed in hotels,

Restaurants, Bars and house etc. This is regular consumable item. As

such there is a good scope for setting up of a few more units in line.

There is a good marketing scope in the cities like Mumbai, Pune,

Nagpur, Aurangabad, Nanded, Latur, Nasik etc.

2. Production Targets (Per Annum):

1. Banana Chips /wafers 40 tons @ Rs. 50000.00 / ton

Rs. 2000000.00
2. Banana Powder 20 tons @ Rs. 35000.00 / ton Rs. 700000.00
 PROCESS OF MANUFACTURING:
Banana powder:
In the manufacture of banana powder, fully ripe banana pulp is

converted into a paste by passing through a chopper followed by a

colloid mill. A 1 or 2 % sodium metabisulphite solution is added to

improve the colour of the final product. Spray- or drum-drying may be

used, the latter being favoured as all the solids are recovered.

A typical spray dryer can produce 70 kg powder per hour to give

yields of 8 to 11% of the fresh fruit, while drum-drying gives a final

yield of about 13% of the fresh fruit. In the latter method the moisture

content is reduced to 8 to 12 % and then further decreased to 2 % by

drying in a tunnel or cabinet dryer at 60° C.

Banana flour:
Production of flour has been carried out by peeling and slicing

green fruit, exposure to sulphur dioxide gas, then drying in a counter-

current tunnel dryer for 7 to 8 hr. with an inlet temperature of 75° C

and outlet temperature of 45° C, to a moisture content of 8%, and

finally milling.
Banana chips (crisps):
Typically, unripe peeled bananas are thinly sliced, immersed in a

sodium or potassium metabisulphite solution, fried in hydrogenated oil

at 180 to 200° C, and dusted with salt and an antioxidant.

Alternatively, slices may be dried before frying and the antioxidant

and salt added with the oil. Similar processes for producing plantain

chips have been developed.

 QUALITY CONTROL METHODS & STANDARDS:

In general a good quality product is obtained if fruit is harvested

at the correct stage of maturity and, where appropriate, ripened under

controlled conditions. For example, in the case of banana figs, the

fruit should be fully mature (sugar content of 19.5% or above) or the

final product is liable to be tough and lacking in flavour. However, if

over-ripe fruit is used, the figs tend to be sticky and dark in colour, so

the fruit must be fully yellow but still firm.

For banana flour, which is prepared from unripe bananas, the

fruit is harvested at three-quarters the full-ripe stage and is processed

within 24 hr. prior to the onset of ripening. If less mature fruit is used,

the flour tastes slightly astringent and bitter due to the tannin content.

Bananas harvested between 85 and 95 days after the emergence of the

inflorescence, with a pulp-to-peel ratio of about 1.7, were considered

to be most suitable for the deep-fat frying.

Other criteria suggested for assessing maturity were beta-

carotene and reducing sugar content, both of which increase with

increasing maturity and pH which decreases as the fruit ripens, and

these should be, respectively, about 2000 µg/100 g, less than 1.5% and

5.8 or above. Browning was found to occur if the sugar content was

higher than 1.5%. The determination of crude fat in processed chips is

also considered to be a necessary quality control measure.

It is important to remove all impurities prior to processing of

products and this is done by washing to remove dirt and spray residues

and control on the processing line so that substandard fruit can be

removed.

Product Stability and Spoilage Problems :

All dried banana products are very hydroscopic and susceptible

to flavour deterioration and discoloration, but this can be overcome to

some extent by storing in moisture-proof containers and sulphiting the

fruit before drying to inactivate the oxidases.

The dried products are also liable to attack by insects and

moulds if not stored in dry conditions, although disinfestations after

drying by heating for 1 hr to 80° C or by fumigation with methyl

bromide ensures protection against attack. Banana powder is said to be

stored for up to a year commercially and flakes have been stored in

vacuum-sealed cans with no deterioration in moisture, colour or

flavour for 12 months.

Banana chips tend to have a poor storage life and to become soft

and rancid. However, chips treated with an antioxidant have been

stored satisfactorily at room temperature in hermetically sealed

containers up to 6 months with no development of rancidity.

The product of banana should confirm to the F.P.O. specification

manufacturer of the processed fruits and products and vegetable is

controlled by the Fruit Product Order ( F.P.O.) 1955 of the Govt. of

India. Hence the entrepreneur interested in this field will have to

secure prior licenses from the concerned authorities and Directorate of

the Ministry of Food and Agriculture, Madras.

 SELECTION OF SITE OF UNIT

Location of the factory site is very important points of view of

business. Location has great significance of success or failure of

business. Therefore a careful consideration has been given to the

relevant factor before the selection of factory location requires

following points:

1. Selection of Region
2. Selection of Locality
3. Selection of Exact Location

1. Selection of Region:
The region selection is very important point for smoothly

running of factory. The region be so selected that raw material

will get easily and abundant and continuous supply of raw

material is important.

2. Selection of Locality:
While working with any manufacturing product selection of

locality is very important. For this project near by Parbhani is

best suitable locality.

3. Selection of Site:
The land in between Parbhani city and Asola village is suitable

for the production of banana processing because the land is

available at cheaper rate as compare to land in Parbhani city.

 SOURCES OF FINANCE

As we know that any product manufacturing unit requires source

of money to establish that unit. So this very important point of view

while any production. As some body says that, “as much money has

power nobody is having”. It is true in the world of today for every

thing, every time, every where we need money. Without which it is

impossible to do any thing. For establishing a new industry finance is

required. Therefore the finance is an important factor in the industry

and business unit.

There are various sources of finance among them we discuss

following;

Private Finance

1. Own Finance:
The finance is created by the person who is establishing the

industry. He is the only owner as he has invested the amount

required for establishing the industry that finance is called Own

finance.
2. Partnership:

Where more than one person provides finance to the industry.

Private & Govt. Sectors:

This includes Banks, Maharashtra State Finance Corporation,

Industrial and Commercial Finance Corporation, Insurance

Companies, The Indian Development Bank of India ( IDBI ), The

National Small Industries Corporation Ltd. ( NSIC ), Small Industry

Development Bank of India etc.

 Legal Formalities

1. This unit must registered under the Small Scale Industry,

2. Approval letter from Directorate of Small Scale Industry,

3. Letter or Certificate for commencement compound under

companies Act 1956,

4. No Objection certificate from Municipal Corporation

about air pollution and noise pollution,

5. Certificate of water supply from Municipal Corporation,

6. Power connection letter from MSEB,

After completion of above formalities, we can start our unit

legally.
 CHANNELS OF DISTRIBUTION

After completing production of certain goods we have to sale it

directly to the consumers. It will be possible to sale in the local

market only and not in outside market so we require some persons

who can sale our product outside also. They are wholesalers, retailers

and agents etc.

Manufacturer Wholesaler Retailer Customer

Manufacturer Wholesaler Customer

Sales Promotion :

Sales promotion is the next step after introduction of the product

in the market. It is an activity which is required for increasing the

sales and to attract the customers towards our products. There are

various steps while details of sales promotion.

 Sales promotion can take a number of different forms, as, For

ex:

• Free samples

• Twins-pack bargains Promotion directed at consumers

• Temporary price reductions

• special discounts

• co-operative advertising

• Bonuses/prizes for sales

representatives Directed at trade
customers
• Provision of display material
 ADVERTISING

Advertising is the process of communicating persuasive

information about a product to target markets by means of the written

and spoken word, and by visual material.

The modern age is the age of competition. The acute competition

has made it absolutely for manufacturer to read the customers and to

find out new buyers for their products. The demand creation has

become an important function now a day. The basic feature of

advertisement is to bring the product as well as its features and uses to

the notice of the customers. Advertising is a links between the

manufacturer and customer.

 Advertising Media

1. News Paper :

News paper being the larger mass media available in our

country. I will be placing more emphasis on news paper

advertising and it gives total coverage. Being the major media in

which a larger number of people look for the information

therefore it is useful.

2. Out Door advertisement :

We use the media for having respective effect and

supplementary media to the main advertisement. Due to its large

size and excellent colour representation the product can be

attracted towards the people. In which poster will be displayed

at the important location in the target market cities and at

important corners, with the occupying pick up points like

railway stations, bus stands, etc.

3. Magazines :

It creates activity in the high society class.

 REQUIREMENT OF FIXED ASSETS AND BREAK EVEN
POINT

Land and Building :

Rental Land and Building with covered area of 5000 sq. ft. and 3000 sq. ft.

respectively. Processing area required is 3000 sq. ft. as described below:

Square feet
Processing area 1,500
Quality control laboratory 100
Raw material store 500
Packing material & machinery spares store 100
Finished goods store 300
Office space 300
Toilet space 100
Other miscellaneous space 100

Rent per month Rs. 3000.00

Rent per year Rs. 36000.00

 Machinery and Equipment
Qty. No. Price in Rs.
1. Cross flow tunnel drier with provision for 1 60000.00

control of temperature, humidity and

recirculation of air.
2. Spare wooden trolleys. 4 6000.00
3. Extra wooden slat bottom drying trays. 100 8000.00
4. Wooden preparation tables with aluminum 4 6000.00

sheet tops ( 4m x 3m x 1m )
6. Heat sealing machine with capacity to seal 1 10000.00

4000 packets per day.

8. Pulverizer. 1 20000.00
9. Platform type weighing balance. 1 10000.00
10 Aluminium vessels. 10000.00
.
11. Big size Iron vessels for frying. 2 5000.00
12 Big size & capacity stove. 2 5000.00
.
13 Sciling machine. 1 50000.00
.
14 Laboratory equipments. 10000.00
.
15 Miscellaneous equipments. 10000.00
.
Total = Rs. 210000.00

Electrification and Installation Charges

@ 10% of the cost of machinery Rs. 21000.00
Cost of Office Equipments Rs. 10000.00

Non recurring expenditure Rs. 241000.00

Staff and Labour ( per month ):

1. Manager-cum-chemist 1 @ Rs. 4000.00 / month 4000.00

2. Clerk-cum-typist 1 @ Rs. 2000.00 / month 2000.00

3. Store Keeper-cum-salesman 1 @ Rs. 2000.00 / month 2000.00

4. Watchman 1 @ Rs. 1500.00 / month 1500.00

5. Skilled workers 2 @ Rs. 1500.00 / month 3000.00

6. Casual workers 10 @ Rs. 40.00 / day 8000.00

Per month Rs. 20500.00

Per year Rs. 246000.00

 Raw Materials ( per month )

1. Raw Banana 30 tons @ Rs. 3000.00 / ton 90000.00

2. Edible Oil 400 kg. @ Rs. 40.00 / kg. 16000.00

3. Spice mixture 50 kg. @ Rs. 150.00 / kg. 7500.00

4. Potassium meta bi-sulphite 10 kg. @ Rs. 100 / kg. 1000.00

5. Turmeric powder 20 kg. @ Rs.75 / kg. 1500.00

6. Packing material 10000.00

Per Month Rs. 126000.00

Per year Rs. 1512000.00

Utilities ( per month )

1. Electricity 5000.00

2. Fuel 5000.00

3. Water 1000.00

Per month Rs. 11000.00

Per year Rs. 132000.00
Other Expenses ( per month )

1. Postage and stationary 500.00

2. Consumable stores 1000.00

3. Repair and maintenance 1500.00

4. Insurance and Taxes 1000.00

5. Advertisement and Publicity 5000.00

6. Traveling and transportation charges 9000.00

7. Telephone charges 1000.00

Per month Rs. 19000.00

Per year Rs. 228000.00

 Working capital ( per month )

1. Raw materials 126000.00

2. Staff and Labours 20500.00

3. Utilities 11000.00

4. Other expenses 19000.00

5. Rent 3000.00

Per Month Rs.179500.00

Per year Rs. 2154000.00

Total Capital Investment

1. Non recurring expenditure 241000.00

2. Working Capital for 3 months 538500.00

Total capital investment: Rs. 779500.00

 Cost of Production ( Per annum )

1. Recurring Expenses 2154000.00

2. 10 % Depreciation on Machinery & Equipment 21000.00

3. Depreciation on Office equipment @ 20 % 2000.00

4. Interest on capital investment @ 15 % 116925.00

Total Cost of Production = Rs. 2293925.00

Total Sales ( Per annum )

1. Banana Chips / wafers 40 tons @ Rs. 50000.00 / ton 2000000.00

2. Banana Powder 20 tons @ Rs. 35000.00 / ton 700000.00

Total Sales( S ) (per annum ) = Rs. 2700000.00

 Profitability ( Per annum )
1. Profit = Total sales – Cost of production

(Sales Return per annum)

= 2700000.00 – 2293925.00

Profit = Rs. 406075.00

Profit

2. Rate of Return = ------------------------------ x 100

Capital Investment

406075

= -------------------- x 100

779500

Rate of Return = 52.09 %

 CALCULATION OF BREAK EVEN POINT ( B. E. P. )

Fixed Cost

B. E. P. = -------------------

( Break Even Point ) P / V ratio

Fixed Cost = 246000.00 + 21000.00 + 2000.00 + 116925.00

F.C. = Rs. 385925.00

Variable cost = 1512000.00 + 132000.00 + 128000.00

V.C. = Rs.1872000.00

Contribution = Sale ( S ) – Variable Cost ( V. C. )

= 2700000.00 – 1872000.00

C = Rs.828000.00
 Contribution (C )

P / V ratio = --------------------------- x 100

Sale ( S )

828000.00

= --------------------- x 100

2700000.00

P / V ratio = 30.66 %

Fixed Cost ( F. C. )

B. E. P. = ----------------------------

P / V ratio

385925.00

= ------------------

30.66 %

385925.00

= ----------------- x 100 = 1258724.72

30.66
B. E. P. = Rs.1258725.00

F. C. x 100

B. E. P. = -----------------------

Contribution

385925.00 x 100

= -------------------------

828000.00

B.E. P. = 46.72 %
 SUPPLIERS OF RAW MATERIAL

Local farmers are the suppliers for the raw material.

MACHINERY AND EQUIPMENT SUPPLIERS

1. Sanjay Steel Builders,

Matruchhaya. N.S. Road, Near Syndicate Bank, Mulund,

Mumbai-80.

2. M/s. Gardens Corporation,

6, Doctor’s lane, Near Gole Market, P.B.No.: 299, New Delhi-1

3. M/s. M. N. Engineers,

C/6, Vastu Sunder Society, Near Police Walkshop, Aundh. Pune-

7.

4. M/s. B. Sen. Barry and Co.

65/11 Rohtak Road, Carol Baugh, New Delhi-5.

5. M/s. Nirmal Trading,

768 Sadashiv Peth, Fadtare Squre, pune-30.

6. M/s. Milky-way, Mumbai-Pune Road, Shivaji Nagar, Pune-5

7. M/s. Ken Dryer Corporation,

109, Manohar Pukur Road, Calcutta-2.

8. M/s. H & P Industries,

Near Mundupalam, Tritur-6.

 SOURCES OF INFORMATION

1. District Industrial Centre, Parbhani.

2. Entrepreneurship Development

By : Vasant Desai.

3. National seminar on “Banana” (Production, Post Harvest

Technology & Export). Date 15 th & 16 th Oct 1999

Organised by : Agricultural & Processed Food Products

Export Development Authority, New Delhi.

4. R & D at the CFTRI (1951-1980)

By : M.R. Raghavendra Rao, K.R. Bhattacharya &

J.V.Shankar

5. Preservation Of Fruits and Vegetables

By : Giridhari Lal, G.S. Siddappa & G.L.Tandon

6. Industrial Engineering and Management

By : O.P.Khanna

7. National Institute Of Industrial Research ( NIIR )

Website : www.niir.org

8. A Project Report on Starting A New Entreprise Of “Banana

Processing”

By : Mr. S. Ajeet Singh (MBA 1994-1995 )

 CONCLUSION

Now a days the fast food fashion is very common. Every one is

taking fast food for the test. If the fast food is out of limit then it will

be injurious to health because it increases cholesterol in your body.

Due to that the various diseases like Heart attack, Blood Pressure

arising.

If will give the same taste without cholesterol then our food

demand will increase automatically.

The banana wafers is a natural product which is made by

banana. Banana is having no side effect on your body. If we will

serve the banana chips as a Hot chips which the trend is very fastly

developing then we may get best output from our business and it will

increases our profit.