Do you want to start a small scale jam jelly manufacturing project? This article contains a preview of a jam jelly-making business plan, complete with equipment, costs, and raw materials. It also provides important information on how to start a jam jelly production company with a small investment.
India has diverse agro-climatic conditions, different types of soil and abundant rainfall. Due to this, our country is a potential producer of high-value horticultural products. Fruits are an important source of energy for human beings, but they are perishable things. However, we can produce a number of value-added products with a large shelf life.
In the entire food processing industry, jams and jellies are the most common products you can easily produce. Minimum machinery is required for this. Therefore, the fixed capital cost is so low. Even, if you already have a 9 to 5 job, you can consider starting this business as well. In addition, you can produce other products including fruit bars, juices, sauces, pickles from the same unit.
10 Steps in Starting Jam Jelly Making Business
Step 1: Understand the Product (Difference between Jelly & Jam)
Jam and jelly are two different products with different characteristics and production processes as well. However, the products also have similarities. Both jams and jellies are made with fruits or fruit components. Therefore, you must first understand the products properly.
|Jam refers to a product made of whole fruit, which is made by cutting or crushing it into pieces.||Jelly is a clarified fruit containing the juice of cedar fruit (or vegetable).|
|Jam contains fruit pulp||Jelly is the juice form of fruit.|
|Geld Syrup which cannot make its own place||Clear and sparkling and keeps itself in its place.|
|Only food accompaniment.||Both food accompaniment, and desserts.|
|Jam looks hazy||Jelly looks clear|
Step 2: Analyze the Market Opportunity
Jams and jellies are important food products because they enhance the purity of food due to their taste and taste. As they are fruits, they supplement the food with vitamins and minerals. Therefore, these products have great potential in the market.
Jams and jellies are consumed regularly at most homes, restaurants, other eateries, clubs, hostels, etc. Apart from this, these are the major selling products in many outlets like grocery stores, department stores etc. Also, the demand for jams and jellies is increasing year by year.
In the Indian market, you will find a lot of established brands like Kisan, Smucker Hai, Druk, Top, Cremica, Patanjali, etc. However, the market is mainly for small units producing these products in specific area.
Table of Contents
Step 3: Prepare the Project Report
The first step is to prepare a business plan or project report. Broadly, you have to mention project overview, business objective, technical aspects, project economics along with cost and marketing plan. Technical aspects include raw material inventory, production process, etc. In addition, you will need to mention where you will purchase the raw material.
Jam Jelly Making Sample Project Cost
- Land, building & civil work: Rs. 7,50,000
- Plant & machinery: Rs.7,00,000
- Other Fixed asset: Rs. 2, 50,000
- Preliminary & preoperative expenses: Rs. 2,00,000
- Contingency & escalation: Rs. 1,00,000
- Working capital: Rs 2,50,000.00
Total Project Cost = Rs 22,50,000
Step 4: Marketing Plan
The marketing plan of the proposed project may include promotional campaigns such as offering special discounts, referrals, advertisements, new product development, etc. In addition, you can consider packaging innovations and tie-ups with home buying.
The effectiveness of distribution coverage and practice is of paramount importance in achieving desired jam and jelly sales. Therefore, it is important to understand the distribution channels to plan and implement an effective distribution strategy. Therefore, you have to put extra emphasis on creating a potential distribution network.
Additionally, you can gain market share by increasing retailer, and distributor margins. Finally, you can consider using media such as broadcasts, newspapers and social network platforms to introduce products and attract more customers.
Step 5: Business Registration & License
In our country, business registration is required to start a jelly making business even on a small scale. Apart from a sole proprietorship firm, you can register the organization as LLP or Private Limited or Limited Company.
After registering the business, you will need to check the required business permissions and licenses. Depending on the location, you will need to obtain a trade license. Apply online for MSME Udyam registration. Also, you will need to obtain an FSSAI registration. FPO license is required to start the fruit processing industry in India. Currently, GSTIN Goods and Service Tax is essential for any type of business in our country.
There is no major pollution problem associated with this industry other than waste disposal, therefore, you have to manage it appropriately. You should apply for a “No Objection Certificate” from the State Pollution Control Board.
Step 6: Arrange Finance
Now, you will have to accumulate the necessary finances. If you have your own capital, you do not need to take any loan. However, you can apply for the entire project finance from banks or other financial institutions. If you have sufficient capital for the fixed cost, you can also apply for a working capital loan as an overdraft facility.
Step 7: Establish the Unit
Location selection is the most important aspect in setting up the unit. In addition, you will need to consider the utilities that you need in the operation of the unit. You will need an adequate supply of water and electricity. Typically, the specific area required depends on the unit size and production output of your project. However, you can start a small-scale operation with a 1000 sq ft covered area.
Step 8: Procure Jam Jelly Making Machinery
- Pulper Machine
- Slicing Machine
- Juice Extractor
- Steam Jacketed Kettle
- Bottle Washing and Filling Machine
- Baby Boiler
- Cap Sealing Machine
- Stirrers, SS Utensils, Burner, Weighing Scales, Hand Gloves
- Miscellaneous Tools and Equipment
- Testing Equipment
Step 9: Procure Raw Materials
To begin commercial production, you must purchase the necessary raw materials. The major consumables you need are fruits, sugar, pectin, additives, preservatives, food colouring, etc. In addition, you will need to purchase packaging jars, such as plastic jars, pouches, labels, cardboard boxes for outer packing, and adhesive tapes.
Step 10: Jem Jelly Making Process
Commercial Jam Production
First of all, you will need to wash fresh fruits in water and remove the skin. Then cut or cut them into small pieces. Boil these pieces with water. Then, mix the appropriate amount of sugar with the pulp. When the temperature is around 60 ° C, add citric acid, colour, essence, etc., then stir the mixture for a while. Pack in bottles after cooling.
Commercial Jelly Production
First, wash and peel the fruits. Feed them to a juice extractor hopper. After receiving the juice, sieve it. Some fruits, such as rasala or guava, should be boiled in water before extracting the juice. Then, add sugar to the juice and boil this mixture to turn it into jelly. Here, add the required amount of pectin, citric acid, colour etc. Boiling is done until a jelly-like structure is obtained. After cooling, pack the jelly.
In the commercial jam jelly making business, you need to maintain product quality. Specify the manufacture date, quantity, MRP and expiration date on the label.
Jam Jelly Manufacturing Detailed Project Report
Jam Jelly Manufacturing Detailed Project Report is a complete package that contains everything that requires getting funds up to 25 Crores (Twenty Five Crores).
Here, our Jam Jelly Manufacturing Detailed Project Report (DPR) deliver after thorough project analysis, which is created based on deep research and rich in graphics and pictorial view and contain required information or data to fulfill its purpose for Bank loan, Government Sponsored Scheme etc.
Our report data is up to date and easily impress your lender as these Jam Jelly Manufacturing Detailed Project Report made by Chartered Accountants. Project reports having unbeatable quality, extraordinary project reports, trusted by thousands of people.
In our reports, you get every micro detail and accurate level of calculation as per the banking guidelines, acceptable to every bank, Non-Banking Financial Company, Government Departments and other financial institutions etc. These reports are very straight forward contain honest descriptions, neat, readable, and to-the-point. Reports are well spaced with titles and subtitles and are free of language errors.
Our report preparation team makes sure that the report is concise and transmits maximum information with minimum words. It guides you to show a roadmap for your business in the longer term. Every bank always has a look at your project report before they lend out any money. It’s important to have a report that’s clear with simple language, easy to understand and one that will offer a real insight into the business ideas that you have.
Detailed Project Report Format
In our project report format, we cover technology details, its diagrams, flow chart etc.. as and when required or deemed fit to include. Also, prepare in-depth financial calculations including CMA which is necessary for the Investor/bank.
Key Points Cover in Detailed Project Report for Bank Loan
As mentioned above, Jam Jelly Detailed Project Report (DPR) is a complete package that contains everything that requires getting funds up to 25 Crores (Twenty Five Crores). Checkout our DPR sample to make your vision more clear. Usually, the Detailed Project Report (DPR) is needed when you apply for a bank loan or Government scheme. Project Report Bank aims to create the reports accurately from the start and make sure that businessmen get the right value and results from the reports.
The following are the key points we generally covers while making DPR, whichever relevant to your business :-
- Introduction to Project and Industry
- Executive Summary
- Profile of the business in the country
- Project Evaluation – Social Angle
- Analysis of basic variables
- Socio- Economic Advantage
- Impact on environment
- Foreign Trade Income
- Value addition
- Import replacement
- Technology assimilation and so on
- Present condition of the business
- Consumer Inclinations
- Market Prerequisites
- Market Portions
- Distribution Channels
- Market Qualities of the Item
- Export Possibilities and Global Market
- Marketing and selling game plans
- SWOT Analysis
- Particulars Of Existing / Proposed Bank Credit Facilities (Form – I)
- Projected Profitability Statement ( Form – II)
- Projected Balance Sheet (Form – III)
- Comparative Operation Statement (Form – IV)
- Maximum Permissible Bank Finance MPBF – (Form – V)
- Cash Flow Statement – (Form – VI)
Monetary Projections Details Contains:
- Cost of Project & Means of Finance
- Details of Raw Materials
- Details of Utilities
- Human Resources Planning
- Technical Manufacturing Business Process
- Assumptions in monetary projections
- Projected Sales & Production
- Cost of Production and Profitability
- Fund Flow Statement
- Working Capital Cycle
- DSCR – Debt Service Coverage Ratio
- BEP – Break Even Point Analysis
- IRR – Internal Rate of Return
- ISCR – Interest Service Coverage Ratio
- Calculation of payback period
- Debt to Equity Ratio
- Working Notes for Monetary Projections
- EBIT – Earnings before interest and taxes
- EBITDA – earnings before interest, taxes, depreciation, and amortization
- Cash Burn Rate
- Discounted Cash Inflow & Outflow
- NPV – Net Present Value
- Net Worth
Report Size : 40 – 50 Pages,
In which, Financial Projections : 18 – 20 Pages
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