West Bengal Govt Project Report For Banana Powder Processing

Feasibility Study of Banana Processing
Unit in West Bengal

Feasibility Study of Banana Processing: Unit in West Bengal
Conctent
Foreword 3
Introduction 4
Status of Agriculture and Value Addition to Agriculture in India
Status of Banana Production: Global, India, West Bengal
Developments in banana trade
Value Addition in Banana
Market for Banana and processed banana products
SWOT
Study Objective
Technical and Financial Analysis of Banana Powder 17
Raw Material Availability
Market Opportunities
Product & its uses
Process of Manufacturing
Project component and cost
Projected Profitability
Breakeven Analysis
Internal Rate of Return
Assumptions
Source of Processing Technology
List of suppliers of machinery / companies
Technical and Financial Analysis of Banana Chips 33
Raw Material Availability
Market Opportunities
Product & its uses
Process of Manufacturing
Project component and cost
Projected Profitability
Breakeven Analysis
Internal Rate of Return
Assumptions
Source of Processing Technology
List of suppliers of machinery / companies
Compliance with FSSA & Regulations for commencement of 47
New Business, Tax Incentives provided by Ministry of MSME,
Administrative procedure, Competitors
Annexure A : List of sources 57
INTRODUCTION 1
INTRODUCTION 2
FOREWORD
The last three decades witnessed India making significant strides in the Agriculture
and Food processing Sector. The success achieved by the country was the result of the
Indian farmer matching domestic demand and creating surplus with corresponding
increase in the yield despite structural barriers. Though India is now the world’s
third largest agricultural producer by value, it still has a long way to go before it
realizes its full potential leaving a huge scope for value addition in agriculture.
According to the FAIDA –III report, the domestic demand for food is expected to grow
at 4 per cent per annum in the next 15 to 20 years and the growth will be much
higher (5 to 6 per cent) across high value food items, such as animal products and
fruits and vegetables (6 to 8 per cent)1.
India’s geographical situation gives it the unique advantage of connectivity to

Europe, the Middle East, Japan, Singapore, Thailand, Malaysia and Korea. One such
example indicating India’s location advantage is the value of trade in agriculture and
processed food between India and Gulf region.
India is the largest producer of banana in the world and about 90% of banana produced
is consumed domestically as fresh fruit. Merely 5% is consumed in processed form
providing a good potential for future processing. About 2.5% is only processed purely
as banana products and the rest as an ingredient in other foods. About 17 varieties
of products could be made from banana. The primary product of banana in market
is “fried chips and candy” which constitute around 31%, rest as banana puree 9%,
banana pulp 3%, banana beer 3%, banana wafers 3%, banana powder 6% and others2 .
Being a highly perishable in nature, value addition of banana into figs, flour, powder,
banana chips, synthetic and natural flavoring to energy drinks could help cater the
changing tastes and rising demand for value added ready-to-eat products. With
different levels of processing (viz. primary, secondary, tertiary levels) including
drying procedure or frying procedure, the nutritional value of banana can help serve
multiple nutritional needs.
This report focuses on the techno economic feasibility of setting up banana processing
industry in districts of West Bengal and provides a roadmap for its execution to
prospective MSM (Micro , small & medium) sector entrepreneurs. It also highlights
the market opportunity using Banana as the content for processing. The report looks
at approvals in setting up of processing industry and provides the technical and
financial analysis including key parameters viz. IRR and NPV.
Confederation of Indian Industry (CII) Food and Agriculture Centre of Excellence

(FACE) New Delhi with the support of Keventer’s Agro Ltd has developed this report
for the Department of Food Processing Industries (DFPI), Government of West Bengal.
1
FAIDA 3, 2013 : Indian as an Agriculture & high Value Food Power house a new vision for 2030
2
Rashmi SB, Jyothsna V (2011) Rural entrepreneurship: exploring the opportunities from waste products of
bananas plant in Karnataka. International Journal of Research in Computer Application & Management 1: 105-
107.
FOREWORD 3
SECTION 1. INTRODUCTION
1.1. Status of Agriculture and Value Addition to Agriculture in India
Agriculture plays a critical role in Indian economy. Food grain production estimated
for the current year is 263 million tonnes compared to 255.36 million tonnes in
2012-13. With agriculture export likely to cross USD 45 billion higher from USD 41
billion in 2012-13, Agricultural GDP growth for the current year is estimated at 4.6
percent compared to 4.0 percent in the last four years. (Interim Budget 2014-15).
India accounts for only about 2.4 % of the world’s geographical area and 4 % of its
water resources, but has to support about 17 % of the world’s human population and
15 % of the livestock3.
Accelerating the growth of agriculture production is therefore necessary not only to

achieve an overall GDP target of 8 per cent during the 12th Plan and meet the rising
demand for food, but also to increase incomes of those dependent on agriculture to
ensure inclusiveness.
The experience from BRICS countries indicates that a one percentage growth in
agriculture is at least two to three times more effective in reducing poverty than the
same growth emanating from non-agriculture sectors.
India’s food production index is the highest among the BRIC (i.e. Brazil, Russia,
India, and China) countries and the Philippines4. The Philippines rising food retail
sales and innovations in processed foods and fruits have gained attention in recent
years. Moving hand in hand with the country’s food production, value addition to
agriculture (as a percentage of GDP) is also found to be the highest among these
identified countries. As per the World Bank’s World Development Indicators, India’s
value addition to agriculture is above 17 percent and has held this level since 2010.
Table: 1
BRICs and Philippines Country Name 2005 2010 2011 2012

Indicator Name
Food production index Brazil 99.4 123.9 129.2
(2004-2006 China 100.4 120.2 124.2
= 100) India 100.0 123.4 131.0
Philippines 100.1 113.0 115.9
Russian Federation 99.6 104.0 117.8
Agriculture, Brazil 5.71 5.30 5.46 5.24
value added China 12.12 10.10 10.04 10.09
(% of GDP) India 18.81 17.98 17.55 17.39
Philippines 12.66 12.31 12.72 11.84
Russian Federation 4.97 3.87 4.36 3.87
3
Report on State of Indian Agriculture 2012-13 , GOI
4
http://www.euromonitor.com/frozen-processed-food-in-the-philippines/report
INTRODUCTION 4
Agriculture value Brazil 3477.61 4705.83 5019.42 5035.23

added per worker China 541.11 680.86 713.28 749.42
(constant 2005 US$) India 564.85 640.93 657.08 662.51
Philippines 1010.85 1081.43 1103.85 1129.00
Russian Federation 4726.74 5135.81 6041.68 5968.63
Source: data.worldbank.org/indicator/EA.PRD.AGRI.KD/countries
Value addition in Agriculture/Food processing sector forms a significant segment of

the Indian economy in terms of its contribution to GDP, employment and investment.
The sector contributes as much as 9-10% of GDP in agriculture and manufacturing
sector,. During the last five years ending 2010-11 food processing sector has been
growing at an average annual growth rate of around 6 % as compared to around 4 %
in agriculture and 9 % in Manufacturing5.
1.2. Status of Banana Production: Global, India, West Bengal
Banana is grown in more than 130 countries. FAO 2012 estimates report the production
of these countries collectively stands at 105.32 million tons of banana and plantain6
with 5.14 million Ha of land under cultivation to achieve this level of production. In
2009, world production of bananas reached an estimated 97.3 million metric tonnes
(mmt), grown on 4.9 million hectares. The 2009 crop represented an increase in
production of 49 percent from the 65.1 mmt recorded in 2000. The top five banana-
producing countries of India, the Philippines, China, Ecuador, and Brazil accounted
for 61 percent of global banana production in 2009, up from 56 percent in 2000. In
addition, there were noticeable production increases in India and the Philippines.
Table: 2 Major producing countries of Banana in the world (2010)
Country Area(000’ha) Production(000’MT) Productivity % Share in

(Mt/ha) World total
Production
India 830 29780 35.88 29.19
China 373.45 9848.9 26.37 9.65
Philippines 449.61 9101.34 20.24 8.92
Ecuador 215.65 7931.06 36.78 7.77
Brazil 486.99 6962.79 14.3 6.82
Indonesia 101.28 5755.07 56.83 5.64
O t h e r 2557.09 32649.02 113.07 32
Countries
World Total 5014.6 102028.17 20.35 100
Source: FAO, 2010
5
Annual Report 2012-13 , Ministry of Food processing Industries
6
The difference between the two terms “plantain” and “banana”, used here, is based purely on how the fruits
are consumed. Plantains are typically eaten cooked and are usually large, angular and starchy, in contrast to
bananas, which are typically eaten raw and are usually smaller, more rounded and sugary.
INTRODUCTION 5
India is the largest producer of banana in the world accounting for 37.2 per cent
of world’s banana production with an annual production of about 248.69 lacs MT/
year(NHB Advance Estimates 2012-13) and the crop occupying about 7.21 lacs
hectares of agricultural area (NHB Advance Estimates 2012-13). It accounts for 32
per cent of the total fruit production (NHB Advance Estimates 2012-13).
Among the banana growing states in India, Gujarat is the leading producer with an
annual production of 45.23 MT(NHB Advance Estimates 2012-13) followed by Tamil
Nadu, Maharashtra, Andhra Pradesh, Karnataka and West Bengal. Fruit cultivation
occurs along the major river Basins viz., Gangetic plains of Bihar, around Godavari
river basin in Andhra Pradesh, around Tapti River in Maharashtra and Cauvery delta
regions of Tamil Nadu; where Water/rainfall is plentiful.
Source: (NHB Advance Estimates 2012-13)
Important banana varieties cultivated in different states of India are given below:
State Varieties grown

Andhra Pradesh Dwarf Cavendish, Robusta, Rasthali, Amritpant,
Thellachakrakeli, Karpoora Poovan, Chakrakeli, Monthan and
Yenagu Bontha
Assam Jahaji (Dwarf Cavendish), Chini Champa, Malbhog, Borjahaji
(Robusta), Honda, Manjahaji, Chinia (Manohar), Kanchkol,
Bhimkol, Jatikol, Digjowa, Kulpait, Bharat Moni
Bihar Dwarf Cavendish, Alpon, Chinia, Chini Champa, Malbhig,
Muthia, Kothia , Gauria
Gujarat Dwarf Cavendish, Lacatan, Harichal (Lokhandi), Gandevi
Selection, Basrai, Robusta, G-9, Harichal, Shrimati
Jharkhand Basrai, Singapuri
Karnataka Dwarf Cavendish, Robusta, Rasthali, Poovan, Monthan,
Elakkibale
INTRODUCTION 6
Kerala Nendran (Plantain), Palayankodan (Poovan), Rasthali,

Monthan, Red Banana, Robusta
Madhya Pradesh Basrai
Maharashtra Dwarf Cavendish, Basrai, Robusta, Lal Velchi, Safed Velchi,
Rajeli Nendran, Grand Naine, Shreemanti, Red Banana
Orissa Dwarf Cavendish, Robusta, Champa, Patkapura (Rasthali)
Tamil Nadu Virupakshi, Robusta, Rad Banana, Poovan, Rasthali, Nendran,
Monthan, Karpuravalli, Sakkai, Peyan, Matti
West Bengal Champa, Mortman, Dwarf Cavendish, Giant Governor, Kanthali,
Singapuri
Source: National Horticulture Board
Agriculture plays a significant role in the West Bengal economy contributing 12.9%
of state GSDP7 (2012-13, Gross State Domestic Product). West Bengal’s production of
Banana contributes 4% to India’s annual production8 in 2012-13. West Bengal is one
of the largest Banana producing states in India with an annual production estimated
to be 10.77 lacs MT/year. Hoogly, Nadia and North 24 Parganas regions in West
Bengal produce Dwarf Cavendish, Champa, Mortman, Rasthali, Amrit Sagar, Giant
Governor and Lacatan varieties of banana.
Source: http://www.wbagrimarketingboard.gov.in/
The primary survey conducted in the different districts of West Bengal with
approximately 150 farmers in each district revealed the following statistics with
respect to Variety grown , average yield , highest and lowest price across the districts.
7
Report Credit Analysis & Research Limited [CARE], 2013
8
NHB advance estimates 2012-13
INTRODUCTION 7
District Variety Sample Average Average Average

Size Yield Highest Price Lowest Price
(Per Kandhi)* (Per Kandhi)*
Coochbehar Mal Bhog 123 261 236 143
Suger 24 231 235 171
Hooghly Chapakala 89 372 221 134
Singapoori 53 351 223 154
Jalpaiguri Mal Bhog 148 352 248 195
Murshidabad Singapoori 89 296 236 175
Suger 59 302 231 186
Nadia G9 22 345 228 142
Singapoori 25 367 228 154
Kachhakela 82 377 231 186
North 24 Singapoori 120 360 216 125
Pargana Kanthali 15 346 255 216
South 24 Singapoori 82 377 232 167
Pargana G9 33 343 239 162
Kanthali 43 401 225 155
* One Kandhi is equal to 10-12 kgs Source: Primary Survey of 150 farmers in each district
1.3. Developments in banana trade
In 2012 the volume of global banana exports reached a record high of 16.5 million
tonnes, 1.1 million tonnes (or 7.3 percent) above 2011 level9. The increase is primarily
explained by the growth of exports from Latin America and the Caribbean from 12.5
to 13.0 million tonnes, despite the poor performance of Ecuador.
Source: Banana Market Review and Banana Statistics 2012-2013, FAO
9
Banana Market Review and Banana Statistics 2012-2013, Market and Policy Analyses of Raw Materials, Horticulture
and Tropical (RAMHOT) Products Team, Food and Agriculture Organization of the United Nations, Rome, 2014
INTRODUCTION 8
Exports from Asia showed a remarkable recovery: After substantial declines in

exports between 2006 and 2010, which were driven by shrinking exports from the
Philippines, the volume of exports from the region rose 25.6 percent in 2011 and
27.1 percent in 2012, reaching almost 2.82 million tonnes, well above the previous
record of 2.4 million tonnes in 200610.
With the remarkable growth rates in both 2011 and 2012, the Philippines reached
the peak of its export performance in 2012 at 2.6 million tonnes, corresponding to
93.9 percent of all exports from Asia11. Whereas the contribution of India remains at
a meager 0.0054 million tonnes only, leaving a huge unexplored market for Indian
Banana export.
Source: Banana Market Review and Banana Statistics 2012-2013, FAO
1.4. Market for Banana
With Developing countries on the other hand will continue to register an increase
in demand for the fruit, with imports predicted to rise 2.5% to 2.33 million tonnes,
driven largely by China. If the recession bottoms out by the end of 2009, then the
demand for bananas will increase by up to 7.8% and tropical fruits by about 2% in
2010, FAO said.
The major destinations of India’s banana were UAE, Saudi Arbia, Iran, Kuwait and
Bharain respectively.
10
Banana Market Review and Banana Statistics 2012-2013, Market and Policy Analyses of Raw Materials,
Horticulture and Tropical (RAMHOT) Products Team, Food and Agriculture Organization of the United Nations,
Rome, 2014
11
Banana Market Review and Banana Statistics 2012-2013, Market and Policy Analyses of Raw Materials,
Horticulture and Tropical (RAMHOT) Products Team, Food and Agriculture Organization of the United Nations,
Rome, 2014
INTRODUCTION 9
Source: http://agriexchange.apeda.gov.in/Market%20Profile/one/BANANA.aspx (DGCIA)
With steady growth in populations and income, and rising awareness about the
positive nutritional value of the fruit, global banana and tropical fruit consumption
is likely to continue its upward trend in the next few decades the FAO report said.
1.5. Value Addition in Banana

Presently, India is witnessing a transition in food consumption habits as the per
capita income rises. Consumers are becoming increasingly aware of the nutritional
benefits being offered by the food products they purchase and the demand for non-
grain food crops, fruits and animal products (dairy and poultry) is expanding12. Value
added products like puree, jams, health drinks, milk shakes and juices all of which
use fruits as a base can satisfy this change in the consumption preference
Banana is a readily available fruit and comes at a price sensitive to the lower
income consumer’s daily energy needs. Processing the banana fruit to harness it
nutritive value, needs to remain keenly sensitive to the price concerns it will place
domestically on this energy source. Banana has a shelf life of 6-7 days which makes it
a highly perishable fruit crop. NRCB through a recent research estimated the losses
at around 20-24% which amounts to 3 to 4 million tonnes (valued at Rs. 3000 crores
per annum).
Being rich in iron, with required dietary fiber, potassium, vitamin’s B6 and C, banana
processed outputs will be in demand by urban consumers needing high sources of
energy in ready to eat foods. Of the different levels of processing, the ones for
powder and chips (identified in the report below) seek to conserve the nutritional
value of banana and serve multiple consumer’s nutritional needs (for bakery, energy,
nutrition, confectionary items) and keep a look out for related income / spending
sensitivities.
In terms of nutrition, Banana as fresh fruit comes at a relatively lower price, and
often serves as the poor man’s ready energy source. This fruit is rich in iron, with low
saturated fat levels, low sodium content and it provides much needed dietary fiber,
potassium, including vitamin B6, and vitamin C. We compare the nutritive value of
inputs used to create chips and report the findings in the table below.
12
IWMI, 2007: http://www.iwmi.cgiar.org/Publications/IWMI_Research_Reports/PDF/PUB119/RR119.pdf
INTRODUCTION 10
Table 1. Nutritional Comparison of the crops used for Chips Processing
Nutrition Facts per 100g

Potato Banana Tapioca
Calories 77 88 159
Total Fat 0.1 g 0.3 g 0.3 g
Saturated fat 0.1 g 0.1 g 0.1 g
Poly unsaturated fat 0g 0.1 g 0.1 g
Mono unsaturated fat 0g 0.1 g 0.1 g
Cholesterol 0 mg 0 mg 0 mg
Sodium 6 mg 1mg 14 mg
Potassium 421 mg 358 mg 271 mg
Total Carbohydrate 17g 23 g 38 g
Dietary fiber 2.2g 2.6 g 1.8 g
Sugar 0.8g 12 g 1.7 g
Protein 2g 1.1 g 1.4 g
Vitamin A 0% 1% 0%
Calcium 1% 0% 1%
Vitamin D 0% 0% 0%
Vitamin B-12 0% 0% 0%
Vitamin C 32% 14% 34%
Iron 4% 1% 1%
Vitamin B-6 15% 20% 5%
Magnesium 5% 6% 5%
*Per cent Daily Values are based on a 2,000 calorie diet.
Source: USDA
1.6. SWOT FOR BANANA PROCESSING IN WEST BENGAL (WB)
Strengths (Ready Raw Material Availability and related input costs for Processing)
The availability of water and good soil condition makes the state a top producer
of many crops in India. Related production advantages (over the rest of India) in
vegetables and fruits ensure processors have an abundant raw material base for
processing. The growth of Agriculture sector in West Bengal for the year 2013 was
2.56% while the national growth recorded was 1.79%. 13Fruits are produced in bulk
in West Bengal and they have a high rate of export from India. Due to the geographic
location of state, it has been a major hub on the important trade route to the South
East Asia and ASEAN countries. There is a potential to develop several points in
state as hubs for cold storage, grading & sorting, processing for value additions and
packaging for products been sent to North East, and neighboring countries of Nepal,
Bhutan, Bangladesh and Myanmar14.
13
Draft Investment and Industrial Policy of West Bengal, 2013 (Govt. of West Bengal)
14
Draft Investment and Industrial Policy of West Bengal, 2013 (Govt. of West Bengal)
INTRODUCTION 11
Local sourcing of raw material would not pose a problem for SMEs. Food Processing
Industries Survey, West Bengal, 2009 confirms West Bengal’s surplus in the vegetables
and fruits that helps ensure enough raw materials are available in the state. This
directly results in lower input costs for processing industries.
Weaknesses
The farmers are yet to develop a complete scientific outlook which causes laggardness.
This can be imparted through increased training and farmer centric workshops. In
addition to it, the overall market infrastructure, post-harvest management and value
addition sector is in the developing phase with an immense scope of improvement15.
Opportunity (Additional Incomes from Processing)
Agriculture in West Bengal is small farmer centric with 90 per cent of the cultivators
being small and marginal farmers. Small and marginal farming communities hold 84%
of the state’s agricultural lands. Marginal operational holding (less than 1 hectare)
accounts for 88.8 percent of the total operational holdings as against 69.8 percent at
all India level . This suggests a majority of farmers work on thin margins, high costs.
More recently, reports of limited availability of skilled labor have made farming a
fairly expensive exercise. Profit margins of small farmers might welcome the fillip
from returns earned from venturing into processing. As entrepreneurs, these same
farmers have the highest probability of turning to processing to generate additional
income. (AT Kearney, 2013)
India has an excellent scope for development of several value added products like
juice, biscuit, banana powder. Also, only 2.5 % of the total produce is processed in
the country indicating an immense potential for food processing industry to grow
and flourish17.
Threats (Market Awareness)
Positioning of processed foods for SME’s needs nuanced marketing approaches.
Food processing has been receiving increased attention in the country as a solution
to micronutrient deficiency (AT Kearney, 2013). Yet a majority of states in India do
not possess high awareness levels on food quality and/ nutrition. Processed food’s
targeting mass markets across India need to recognize this constraint.
SME’s18 would benefit when they ensure their firm’s short and / medium term focus
stays zoomed in on financial viability (up to 3 years). Positioning nutrition as an SME’s
long term focus would prove beneficial. The returns for such nutrition focus would
more likely come over the medium and/ longer term (up to 50 year time frame).
15
NABARD WEST BENGAL, 2009
16
AGRO-ECONOMIC RESEARCH CENTRE VISVA-BHARATI SANTINIKETAN 2012
17
Rashmi SB, Jyothsna V (2011) Rural entrepreneurship: exploring the opportunities from waste products of
bananas plant in Karnataka. International Journal of Research in Computer Application & Management 1: 105-
107.
18
Enterprises engaged in the manufacture or production, processing or preservation of goods as specified below:
A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but
does not exceed Rs. 5 crore; a medium enterprise is an enterprise where the investment in plant and machinery
is more than Rs.5 crore but does not exceed Rs.10 crore.
INTRODUCTION 12
Value addition at processing level in India is relatively low at present. Increased

emphasis on processing can encourage technology, R&D investments in the field,
which can further lead to economically viable technology solutions making it more
accessible for SME’s and farmers to take up processing. (Source: AT Kearney, 2013)
INTRODUCTION 13
INTRODUCTION 14
Section 2 - Banana Powder
INTRODUCTION 15
INTRODUCTION 16
SECTION 2 - BANANA POWDER

Banana is considered to be one of the most popular and widely consumed fruits in
India due to the nutritional value it offers at a relatively lower price. The fruit is a
rich source of carbohydrates and vitamin B; it is also easy to digest containing no fat
or cholesterol. However, under normal conditions, banana has a shelf life of 6-7 days
which makes it a highly perishable fruit crop. Moreover, the losses are estimated to
be almost one-fourth of the total production and the key reasons for these losses
have been cited as faulty handling procedures like improper transportation, lack of
packaging, cold chain and post-harvest storage infrastructural facilities.
Value addition through processing can ensure adequate return to the farmers and
avoid losses due to perishable nature of the produce. This can also enable export
of food products to the markets world over and avoid glut in the local market20.
The objective of the this profile is to present a clear plan and ground reality to
prospective entrepreneurs in MSME sector for entering into the banana processing
industry in West Bengal. The profile will guide, encourage and assist entrepreneurs
with an initial investment of around 34 lacs (plant and machinery) of the opportunities
and challenges they are likely to face in the sector. The entrepreneur is expected
to breakeven within the 2nd year of operation with the plant working for 240-280
days in a year with an operating capacity of 30% and 40% during 1st and 2nd year
respectively
2.1. RAW MATERIAL AVAILABILITY
The varieties which are deemed suitable for the production of banana powder are
the ones containing low sugar content. The most ideal variety to produce high
quality banana powder is Nendran, which is largely grown in the southern India but
not in West Bengal. Dwarf Cavendish (locally known as Singapori) which is available
in West Bengal can replace Nendran as there is a marginal difference between their
properties. Out of the indigenous varieties grown in West Bengal, Rasthali can also be
directly used for processing into Powder. Other materials include oil, salt, packaging
material, flavours, citric acid, label etc. that can be sourced locally.
Regional Banana Characteristics:
Source: www.wbagrimarketingboard.gov.in/fruits/fruits3.htm
19
http://www.nrcb.res.in/document/vision%202050.pdf
20
West Bengal Food Processing Industry Policy 2011
BANANA POWDER 17
Source: Primary Survey of 150 farmers in each district
BANANA POWDER 18
The Average Price in Rs. per 100 Kg of Nendran variety of Banana in Coimbatore
Market is reflected below:
Source: Primary Survey in Coimbatore Market
The whole sale prices for bananas are in the range of INR 900 to 1500 per quintal in
Kolkata (indicated below). A small or medium entrepreneur would require 100 kgs of
bananas to produce 15-20 kgs of banana powder which can fetch INR 400-500/Kg in
the Indian market.
For a pilot plant using 1000kg of bananas as raw material for producing banana
powder the estimated cost would be around Rs. 821364. Assuming that there would
be no cost incurred on land and building, the cost break up is as below.
S. No. Item Amount

1 Land and Building 0
2 Plant and Machinery 670000
3 Prel. & Preoperative Exps. 30000
4 Staff and Labour 23400
5 Misc. Assets 30000
6 Contingencies @ 10% on Building and plant and machinery 67000
7 Working Capital Margin 964
Total 821364
BANANA POWDER 19
For an entrepreneur to derive profitable returns on the processing plant, the location
of the plant should be decided based on the proximity to:
1. The area growing the varieties suited for powder production
2. Area with access to roads, transportation facilities, banking infrastructure and

electricity
3. Major cities or towns
4. Ports, railways and Airports
2.1.1. District-wise Financial Inclusion in West Bengal:

Mentioned below are top districts of west Bengal in terms of availability of Financial
Infrastructure
Districts Rank
Kolkata 1
Darjeeling 2
Birbhum 3
Bardhaman 4
Haora 5
Hugli 6
Bankura 7
North 24-Parganas 8
KochBihar 9
Midnapore 10
2.1.2. District-wise Road Length in West Bengal
Mentioned below are top districts of West Bengal in terms Road Infrastructure21:
(Unit : Km.)
Districts 31.03.2006
Surfaced Unsurfaced Total
Midnapore 2038 51 2089
Burdwan 1940 2 1942
24-Parganas (North) 1342 2 1344
Jalpaiguri 1253 3 1256
Murshidabad 1213 11 1224
24-Parganas (South) 1212 3 1215
21
Research study by Shri Sadhan Kumar Chattopadhya , Assistant Adviser in DEPR, RBI, Mumbai, 2011
22
http://nhb.gov.in/model-project-reports/Horticulture%20Crops%5Cbanana%5CBanana1.htm
23
Primary survey conducted from:
1)Saipro Biotech Private Limited, Pune (http://www.saiprobiotech.co.in/)
2) G. G. Foods, Udaipur(http://www.indiamart.com/ggfoods/)
BANANA POWDER 20
Bankura 1170 16 1186

Hooghly 1184 - 1184
Birbhum 1168 9 1177
Nadia 999 6 1005
Source: Indiastat
Source: NHB 2013
2.2. MARKET OPPORTUNITIES

Even though India accounts for only 16.55 per cent in area under banana cultivation,
it leads in banana production with 29.19 per cent share of global banana production
trailed by China and Philippines. However, India’s contribution to the banana exports
stands at less than 1% indicating that the major share of the banana production
is consumed domestically as raw fruit. Considering the competition in the market
combined with an estimated 25 - 40% of the banana crop produced being wasted
and only 2% being utilized for processing into value added products, a farmer or a
small entrepreneur engaged in banana production is likely to be exposed to price
imbalance and large price variations22. In order to create an additional income source
to offset such price imbalance, venturing into processing can be beneficial.
Banana Powder can also be used in the development of value added products such
as biscuits which contain relatively less fat and more nutrients. Banana Powder is
also a good source of Dietary Fiber, Potassium and has multiple medicinal properties
which can be used as an additive in confectionary, nutritional supplements and in
baby food as well. The use of banana powder in baby food during the weaning phase
has already been a traditional practice India which can also provide Banana powder
processing SME’s an opportunity to either directly sell the product in the markets
or by association with baby food manufacturing companies. According to several
banana powder manufacturers and exporters, the maximum demand that is received
is from the Industry involved in the manufacturing of bakery/confectionery products
and baby food23.
The following figure indicates the growth in the market size of baby food around the
world:
Source: http://www.ats-sea.agr.gc.ca/inter/5852-eng.htm (Agriculture and Agri-Food Canada, Govt of Canada:

Global Pathfinder Report, 2011)
http://marketpublishers.com/report/consumers_goods/food_beverage/confectionery_global_industry_guide.
24
html
BANANA POWDER 21
The global confectionery market grew at a 3.2% CAGR between 2007 and 2011 and
generated USD 157,640 million in revenue by end-2011(2013 research by Market
Line). The research shows that the confectionery market will exhibit similar growth
pattern in the subsequent years with a 3% CAGR during 2011-2016 resulting in the
generation of USD 182,697 million by 2016. The confectionery market in Europe is
expected to reach more than 7,079 million kg by end-2016 from a volume of about
6,573 million kg in 2011. Similarly, Asia-Pacific confectionery market is expected to
touch 2,927 million kg by 2016-end, an increase of 12.4% since 201124.
With diverse applications and benefits, banana powder can cater to various sections
of society and demography’s at the same time making it one of the products having
highest potential in terms of market size and consumer base.
2.2.2. Marketing Strategy
This profile will enable a small scale entrepreneur to take a calculated decision to
venture into banana processing, particularly banana powder manufacturing. In order
to derive profitable returns, a well-planned strategy will have to be employed to
market the product not only domestically but in the international markets as well.
Since banana powder is majorly used as an ingredient in multiple products, an

entrepreneur would need to identify and approach organizations engaged in the
manufacturing of such products. Another approach can be position yourself as a
standalone banana powder manufacturing entity and establish your brand name in
the market. This would require approaching retailers and distributors to get your
product out in the market. Some of the other states with significant production of
banana assist their banana processing SME’s by providing market linkage through
state agriculture. In addition to the assistance provided by the state, the SME’s in
these states also get the products to the market with the help of local transporters
who collect the finished product and take them to the associated retailers in the
adjoining cities. These transporters charge the processors a particular amount per kg
for transportation. Simultaneously, an effort has to be made to explore international
markets and interact with foreign players, traders and retailers to ensure that they
are made aware of an alternate supplier for banana powder in India.
According to a research conducted for exploring the marketing channels available

to a fruit processor in West Bengal, where Mango Fruit was taken as the research
object, it was found that majority of the food/fruit processing units in West Bengal
were selling their products through intermediaries like middlemen, retailers and
wholesalers. This indicates potential for the development of dedicated marketing
channels for fruit processors that could assist in getting the products readily available
in the domestic and international market25.
25
AGRO-ECONOMIC RESEARCH CENTRE ,VISVA-BHARATI ,SANTINIKETAN, 2010
BANANA POWDER 22
Source:http://www.visva-bharati.ac.in/InstitutionsCentresSchools/Contents/AERC-DETAIL/Final-Report-164.pdf
The scope for the product is immense but it would need focused effort on the part
of the entrepreneur to find buyers and traders who can get the banana powder from
the plant available in the open market. With the advent of the e-commerce websites
and their rising popularity, it would also be prudent to get the product listed on such
sites in order to reach global buyers instantly.
2.3. PROJECT DESCRIPTION
The following section provides the financial analysis of manufacturing 72 tonnes

of banana powder annually. It will present an indicative description of the capital
investment, working capital and projected profits for an entrepreneur planning to
set-up a processing unit using the manufacturing method as indicated by figure 2
above (which uses raw banana). These financials may vary according to an individual’s
financial budget, capacity planned and the region for setting up the plant.
a) Product & Its uses
Banana is considered to be the most popular fruit in India and around the world,
being a rich source of energy abundantly available at a low price. Similarly, the
powdered form of Banana offers all the benefits contained in the raw fruit. It’s rich
in potassium which is essential in keeping the heart and nervous system healthy along
with keeping the bones, kidneys in good shape. Banana powder also acts as a natural
medicine as it is said to have an antacid affect along with being recommended for
children recovering from gastrointestinal problems, particularly diarrhea. It is also
known to have a very high percentage of Vitamin B6 that plays a significant role in
production of antibodies responsible for the formation a strong immune system.
b) Capacity
The proposed capacity of the plant is to produce 72 MT / annum of banana powder.
BANANA POWDER 23
c) Manufacturing process:
For an entrepreneur, there exist two methods for commercial production of powder.
The first one is to make banana fruit powder (figure 1 above)26, which is relatively
costlier (Spray dried) and used for weaning food and production of milk shakes and
sausages. The other method is using raw bananas, cooking it, peel the outer skin,
chopping into pieces drying and grinding to make banana powder (figure 2 above).
27
The mass production of the powder thus obtained from the second method can
be achieved through mixing with corn and wheat flour and it is utilized for making
plenty of food products like readymade chapatti’s, s pharmacy products and bakery
items.
Spray drying is used to take input as in the liquid form (juice) while drum drying
takes input in semi-solid form (puree). The output yield obtained from spray drying
varies from 8 to 11% of the fresh fruit, while drum drying produces an output a
yield of about 13%. Banana Powder is considered to be stable for minimum 1 year
post packaging. Good quality Banana powder depends on the variety and degree of
ripeness of banana used along with the processing operation.
26
http://www.agritech.tnau.ac.in/expert_system/banana/index.html
27
Primary inputs received from: G. Ajeethan, General Secretary,Tamilnadu Banana Growers federation
BANANA POWDER 24
2.4. PROJECT COMPONENTS & COST
2.5. ASSUMPTIONS
• The plant will work for 240 days in a year.
• The operating capacity is 30 % and 40% during 1st year and 2nd year respectively.
• Price of raw material and selling price of finished products is taken at Rs.10/
kg and Rs. 500/ kg respectively.
• Packaging cost: INR 20/Kg for Intra State transport (Prices in Tamil Nadu). It
may cost more if an entrepreneur wants distribute the finished product to
other states or countries.
• Transportation Cost: INR 3/Kg (Prices in Tamil Nadu)
• The land rates and cost of utilities are specific to Nadia region in West Bengal
and may vary according to other regions.
• Cost of Electricity: Rs.9/ Unit
• Cost of Water: Rs.9/ per KL
a) Land & Building
Land with an area of 1800 Sq Feet and building with covered area of 1260 Sq Mtr.
having the provision of production Hall, Raw Material stores, Finished Goods Store.
S. No. Item Qty. sq. ft. Rate Amount

1 Land 1800 103 1,85,400
2 Land Development 1800 350 6,30,000
3 Building & Civil Construction 1260 750 9,45,000
Total 17,60,400
Assumption: The above mentioned land area is given for an entrepreneur who wants
to start the plant which is partially automated. As and when entrepreneur expands
his business the land requirement might increase
b) Plant & Machinery
Item Qty. Amount

Pulverizer 1 1,20,000
Tray Drier 1 5,50,000
Total 6,70,000
BANANA POWDER 25
Assumption: The above mentioned machine requirement as per inputs received

from an entrepreneur producing banana powder using these machines. The machine
requirement may vary as per an individual’s requirement and financial budget.
c) Utilities
Power requirement will be around 150HP/day and around 500 liters of water shall
be required every day for washing, potable and sanitation purposes. Total cost of
utilities is estimated at Rs.3,00,000 per annum.
d) Prel. & Pre-Operative Expenses ,
A provision of Rs. 30,000 is made towards pre-production expenses like registration,

establishment and administrative expenses, travelling, interest on loan during
implementation trial run expenses etc.
e) Staff and Labor
Particulars No. Salary (per Month) Total Price (Rs.)

Rs. per annum
Plant Supervisor 1 20,000 2,40,000
Operator 1 15,000 1,80,000
Semi-Skilled Labour for processing 3 4,200 1,51,200
Marketing Executive 1 10,000 1,20,000
Total 6,91,200
Assumption: The staff and labor requirement may vary for an entrepreneur as per an
individual’s requirement and financial budget
e) Working Capital Assessment
Particulars Period Margin Total Bank 75% Promoters

25%
Stock of Raw 1 day 25% 8,219 6,164 2,055
Material
Packing Material 1 month 25% 3,288 2,466 822
Stock of Finished ½ month 25% 1,99,375 1,49,531 49,844
Goods
Receivables ½ month 25% 13,50,000 1,012,500 3,37,500
Total 15,60,882 1,17,0661 3,90,220
f) Cost of the Project and Means of Financing
S. No. Item Amount

1 Land and Building 17,60,400
2 Plant and Machinery 6,70,000
BANANA POWDER 26
Prel. & Preoperative Exps. 30,000

Misc. Assets 3,50,000
Contingencies @ 10% on Building and plant 2,43,040
and machinery
Working Capital Margin 3,90,220
Total 34,43,660
Means of Finance
Promotors’ Contribution 13,77,464
Term Loan from Bank 20,66,196
Total 34,43,660
Debt Equity Ratio 1.5 1.5:1
Promotors’ Contribution 40%
2.6. PROJECTED PROFITABILITY
a) Production Capacity
The rated production capacity of the plant is 72 M Tons / year whereas actual capacity
utilization is expected to be 30 % and 40 % during 1st year and 2nd year respectively
b) Sales Revenue at 100%
Product Qty(in Kgs) Selling Price(Rs/Kg) Total Sales

Banana Powder 72,000 400 2,88,00,000
Total 2,88,00,000
Selling Price Assumed at: INR 400/ kgs ( basis primary survey conducted)
c) Raw Material Required at 100%
Product Qty (in Kgs) Rate (Rs / Kg) Amount

Banana 3,60,000 10 36,00,000
Packing Material 14,40,000
Transportation 2,16,000
Total 52,56,000
d) Projected Profitability
S. No. Particulars 1st year 2nd year

A Installed Capacity 72
Capacity Utilization 30% 40%
Sales Realization 86,40,000 1,15,20,000
B Cost of Production
BANANA POWDER 27
Raw and Packing Material 15,76,800 21,02,400

Utilities 3,00,000 3,30,000
Salaries 6,91,200 6,91,200
Stores and spares @ 15% 1,00,500 87,000
Repair and maintenance 2,16,000 2,88,000
@ 2.5%
Selling and distribution 21,60,000 28,80,000
expenses @25%
Administrative expenses 1,50,000 1,87,000
Total 51,94,500 65,65,600
C Profit before Interest 34,45,500 49,54,400
and Depreciation
Interest on Term Loan 2,06,620 2,00,071
Interest on working 1,40,479 1,50,000
capital
Depreciation 1,00,500 80,000
Net Profit 29,97,901 45,24,329
Income Tax @ 20% 5,99,580 9,04,866
Profit after Tax 23,98,321 36,19,463
Cash Accruals 24,98,821 36,99,463
Loan Repayment 0 7,00,000
e) Break Even Point Analysis
S. No. Particular Amount

Sales 86,40,000
Variable Cost
Raw and Packing Material 15,76,800
Utilities 2,10,000
Salaries 4,14,720
Stores and spares 1,00,500
Repair and maintenance @ 2.5% 2,16,000
Selling and distribution expenses 15,12,000
@ 10%
Administrative expenses 75,000
Interest on working capital 1,40,479 42,45,499
Surplus 43,94,501
Fixed Cost 16,81,157
Break Even Point(%) 38
BANANA POWDER 28
f) Debt Service Coverage Ratio (DSCR)
Particular 1st Year 2nd Year

Cash Accruals 24,98,821 36,99,463
Add - Interest on TL 2,06,620 2,00,071
Total (A) 27,05,440 38,99,534
Payment of Interest on TL 2,06,620 2,00,071
Repayment of TL 0 7,00,000
Total (B) 2,06,620 9,00,071
DSCR (A)/(B) 13.09 4.33
Average DSCR 8.71
g) Internal Rate of Return (IRR)
Year Cash Accruals 25%

Cost of Project -34,43,660
1 24,98,821 19,99,057
2 36,99,463 23,71,451
3 75,00,000 38,46,154
4 75,00,000 30,73,770
5 75,00,000 24,59,016
2.7. SOURCES OF PROCESSING TECHNOLOGY
Indian Institute of Crop Processing Technology: IICPT, Ministry of Food Processing

Industries, Government of India, Pudukkottai Road (NH 226),Thanjavur, Pillayarpatti
layout, Thanjavur, Tamil Nadu 613005
2.8. PLANT AND MACHINERY SUPPLIERS
1.
Arihant Engineering Works, 124, G N T Market, Dhar Road, Kagdipura Rd,
Chhatribagh, Indore, Madhya Pradesh 452002
http://arihantengineeringworks.tradeindia.com/
Mr. Ankit Verma (Proprietor)
Mobile : +919425082586, +919425062437
Phone : 91-731-2380535/2380537
2.
Pratham Engineering, A - 04 / 05, Bharat Compound, Near Daras Dhaba, Western
Express Highway, Kashimira, Mira Road East, National Highway 8, Kashimira,
Mira Road East, Mira Bhayandar, Maharashtra 401104
www.prathamengineering.com
Phone: 08447558703
2.9. BANANA POWDER MANUFACTURERS
BANANA POWDER 29
Tamil Nadu
1) White Bull Banana Powder

Dhalavaipuram-626188, Virudhunagar dist. Tamilnadu
Phone: 094439 62191
2) Sreemathi Banana Powder

Thottiyam, Tiruchirappali District – 621208
Tamil Nadu
Phone: 09443868604
E-mail: [email protected]
Maharashtra
1) Vinayak Ingredients (India) Private Limited

Unit No.116, 1st Floor,
Cama Industrials Estate,
Sunmill Compound Lower Parel - west,
Mumbai - 400 013. INDIA.
Tel: +91 22 40560400
Mob: +91 9004600042
2) Drytech India
B - 45, Girikunj Industrial Estate,
OFF Mahakali Caves Road,
Andheri (East),
Mumbai - 400 093.
Tel: +91-22-26875361 / 62 / 63 / 64
BANANA POWDER 30
Section 3 - Banana Chips
INTRODUCTION 31
INTRODUCTION 32
SECTION 3 - BANANA CHIPS

Being a highly perishable in nature, there is need to preserve this important fruit by
value addition and manufacturing products like banana chips which has large export
market. It can be preserved for 3 months or more by reducing moisture in it. This
may be done by drying procedure or frying procedure. The keeping quality of the
fruit is greatly improved by the reduction in the water content.
Value addition through processing can ensure adequate return to the farmers and
avoid losses due to perishable nature of the produce. The objective of the this
profile is to present a clear plan and ground reality to prospective entrepreneurs in
MSME sector for entering into the banana processing industry in West Bengal. This
section presents a clear picture on the economic and technical feasibility of setting
up a banana chips manufacturing unit with an investment of around 25laks Rupees.
The entrepreneur is expected to breakeven within the ……..year of operation. The
financials are projected on the assumptions that the plant will work for 365 days in
a year with an operating capacity of 60 %, 70% and 80% during 1st year, 2nd year
and 3rd year respectively.
3.1. RAW MATERIAL AVAILABILITY
The varieties which are deemed suitable for the production of chips are Nendran,
Dwarf Cavendish and Pachabale. Nendran is the most commonly used variety for
production of chips in southern region. On the other hand dwarf Cavendish is available
in excess in West Bengal and can replace Nendran as the properties differ marginally
(see Table 2.). Also Dwarf Cavendish, commonly known as singapori in West Bengal
would appeal to the palate of the domestic market. Other materials include oil, salt,
packaging material, flavours, citric acid, label etc. that can be sourced locally.
Table2. Physical and mechanical properties of raw banana
No. Properties Banana varieties

1 Dwarf Cavendish Nendran
2 diameter (max) (mm) 23.34 37.08
3 length (max) (mm) 137.00 194.50
4 width (max) (mm) 66.50 50.00
5 average weight of single fruit (g) 97.84 201.43
6 average pulp/peel ratio 1.39 2.32
7 average specific gravity (dimensionless) 0.933 1.005
8 load required to cut (max) (N) 22.40 28.20
9 cutting load per unit width (N/mm) 0.754 0.821
Banana contains about 20% sugar and reasonable amount of vitamins A, B, and C.
This is considered to be a food having rich source of energy. It is consumed in several
varieties of preparation and forms. When it is raw, it is used as vegetable or cooking
purposes. It is easily digestible, when it is ripe; the pulp gets soft, sweet and has a
pleasant aroma.
BANANA CHIPS 33
3.2. MARKET OPPORTUNITIES
3.2.1 Demand and Supply
The global economic slowdown in recent years had a relatively milder effect on
the snack foods market as the ‘eating in’ trend amplified the demand for snacks
served as appetizers at home, while fortification of snack items and new products
with exotic flavors played a bigger role in sustaining consumer interest (GIA: Global
report on Snack Foods market 2012) The industry witnessed a record number of new
product launches and brands in recent years as manufacturers sought to attract
consumers with new flavors and products with enriched nutritional profiles.
Healthy snacks are likely to enhance a greater demand for low-calorie, healthy and
fiber-rich snacks. The Indian snacks market in the year 2009-10 was estimated to be
worth Rs. 150 billion with the organized segment accounting for half of the market
share and growing at a rate of 15-20%. The share of unorganized sector on the other
hand being roughly Rs. 75 billion with growth at a rate of 7-8%.
One of the major benefits of consuming banana chips is their fiber content. Banana
chips also serve as a source of iron, an essential mineral that benefits the health.
Iron helps form hemoglobin and myoglobin, two proteins that provide tissues with
a fresh supply of oxygen. Banana chips -- like whole bananas -- boost the intake of
potassium. There exists a strong demand for banana chips as most people enjoy
eating snacks.
The main export markets for Indian bananas have mainly been Middle East countries
viz. U.A.E., Saudi Arabia, Oman, Bahrain and Qatar. Globally Grand Naine and
Cavendish varieties have the most demand. India’s contribution to the banana exports
stands at a meager 1% indicating that the major share of the banana production is
consumed domestically, which leaves a huge unexplored global market for Banana
and processed Banana products.
Figure: 1 Estimated Daily Consumption of Banana (Fresh) in Kolkata
State/Union Territory Banana 2009-10 Banana 2010-11

Production (in Production (in
‘000 Tones) ‘000 Tones)
West Bengal 982.2 1010.1
All India 26469.4 29780.2
Production per day (West Bengal)-MT 2691 2767
Production per day (All India)-MT 72519 81590
Approximate daily size of Kolkata Market 604 680
(in MT)
No. of Bananas consumed daily in Kolkata 3625945 4079479
Globally Philippines is the major producer of Banana Chips and according to the
Bureau of Agricultural Statistics (BAS) Report in 2006, major country destinations
BANANA CHIPS 34
of banana chip exports from Philippines have been the United States, Vietnam,
Singapore, Taiwan, China, Japan, Hongkong, Germany, France, UK, Netherlands, and
the Union of Soviet Socialist Republics. Philippines’ exported volume in 2011 was
2,046,373.58 MT for fresh bananas worth $470,957.85 million; for chips and crackers
30,141.62 MT valued at $50,575.27 million22 indicating that a huge demand exists in
these markets for Banana Chips, which could be a potential export market for India
as well.
Figure: 2 Volumes and Value of Exports of Banana Chips from Philippines Year
2007-2011
Source: Philippines Bureau of Agricultural Statistics (www.bas.gov.ph)
3.2.2 Marketing Strategy
This study is focused on starting a small scale banana chip making business, selling
the product in supermarkets, clubs, hotels or retail stores etc. Proper placement
of products in the departmental stores, super markets, shopping mall etc. backed
up by publicity with an USP of being a healthy snack is the key to success. It is also
possible to have tie-up with exclusive restaurants, hotels, renowned caterers etc.
While fresh bananas are widely available, banana chips are not easily available in
many parts of the country. Making chips increases the shelf life of the product in
times of abundant harvest and provide an opportunity to increases the income levels,
perhaps if the farmers are able to find a market rather than go for distress sale. If
the entrepreneur wishes to sell direct to the end customer, then the location with
the highest traffic should be chosen. This will generally mean higher expenses in the
form of rent. If the entrepreneur wishes to sell through shops, hotels or clubs, then
the business can be started from the production site however the entrepreneur will
have to accept a lower mark-up to allow for a margin to be made for the shop owner.
BANANA CHIPS 35
3.3. PROJECT DESCRIPTION
3.3.1. Product & Its uses
In the banana processing sector, only 3-4% of the total production is processed. The
banana processed products mainly consists of banana chips. Majority of the chips are
produced from Nendran banana, however, Robusta and Monthan banana fruits are
also being processed as chips to some extent in Maharashtra and Tamil Nadu states.
Banana chips are deep-fried and/or dried slices of bananas. They can be covered
with sugar or honey or they can be flavoured with spices (tomato, Chilli, plain salted,
Mexican, Italian etc.) or Variants of banana chips may be covered with chocolate,
cream etc.
3.3.2. Capacity
The proposed capacity of the plant is to process 100 MT / annum of banana Chips.
3.3.3. Manufacturing process
Good large size bananas slices are cut cross wise to give circular shape. Bigger size
fruits are preferred to produce large size slices and an attractive product. Different
varieties give products of different colour, flavour and taste. Crosswise slicing gives
uniform, circular, attractive, product and is universally adopted for commercial
production.
Steps involved in Banana Chips processing
1. Selection: Good quality, green cooking bananas is preferred.
2. Cutting and Peeling: Using a knife, banana bunches are separated from the main
stem and individual bananas hands are separated from the bunches (looms).
Using a hand peeler, bananas are peeled and immediately sliced cross wise into
thin, round slices.
3. Immersion in salt water: Immediately after slicing the slices are placed in salt
water @ 3 to 5% of salt to the water. Added salt gets in to the slices and
improves taste arid acceptability of the product. If slices are not placed in
water, they turn Brown and later give an unacceptable dark product.
4. Frying: Keep a large shallow Frying Pan or wok over a suitable stove (with
adjustments for flame/heat control). Good edible vegetable cooking oil is used
for frying. Bring the oil to fuming hot temperature. The long spoon or ladle
used for taking out the fried chips from the wok can be either a big perforated
one, of 8 to 12 inches in diameter and with long handle or of a large diameter
wire mesh spoon with bamboo handle. The salt soaked slices are then dropped
one by one manually into the hot oil in the frying pan. Never put the slices
together in clusters into the oil as the slices being starchy stick to each other
and are difficult to separate later.
BANANA CHIPS 36
Figure: 3 Steps involved in Banana Chips processing
3.3.4. Facility location and layout
The Banana Chips manufacturing plant is proposed to be set up in Nadia District. The
district is total 390027 sq. km. in area and holding 11th position in terms of area. It
is surrounded by Murshidabad on the North & North-West, & North 24 on the South &
South-west. The district shares international boundary with Bangladesh.
As Nadia has a good access to Bangladesh so it can enhance export and import
activities to that country. The district is majorly known for Banana production in
West Bengal.
Figure: 4 Top Five Banana Growing Blocks in Nadia
Source: District Statistical Handbook, 2009
BANANA CHIPS 37
Around 40.89% of population of Nadia District falls in the age group of 25-59 years
implying a good source of Manpower. (Source: District Statistical Handbook, 2009)
Banking Infrastructure in Nadia:
Lead Bank - UBI Bank and following are the other banks found in the district
Name of the banks Number of branches

State Bank of India 47
Allahabad Bank 23
Canara Bank 5
Central Bank of India 4
UCO bank 4
Bank of India 11
Gramin Bank 66
Transport Infrastructure in Nadia:
Nadia district is well connected through road ways, railways & waterways with other
parts of the state:
• National High way: NH 34 and it runs from NSC Bose Airport to Dalkhola in north
Bengal. At Dalkhola it meets NH-31 that goes to Siliguri.
• Lane : 2 (proposed for conversion to 4 lane)
• Length of roads within the district: 117 Km.
• Connected to other states: The NH is specific to West Bengal only.
• Connected other districts : Murshidabad, Malda, Uttar Dinajpur, Dakshin

Dinajpur, Kolkata
• Blocks on the NH: The National high way-34 passes vertically throughout
the district and touches different blocks such as Haringhata, Chakdaha,
Ranaghat, Shantipur, Dhubulia, Nakashipara, kaliaganj etc.
• State Highway (SH) :
• SH 3 connecting South 24 parganas, North 24 parganas and Kolkata.
• SH 8 connecting Bankura and Burdwan.
• SH 11 connecting Murshidabad.
BANANA CHIPS 38
Power Infrastructure in Nadia:
West Bengal State Electricity Transmission Company Ltd. (WBSETCL) is the only
distributor of electricity in whole Nadia. Supply Stations (SS) are:
Sl. No SS name Capacity (KVA)

1 Debagram 132
2 Krishnanagar 220
3 Bagula 66
4 Ranaghat 132
3.4. PROJECT COMPONENTS & COST
For calculation in the following section the price of raw material and selling price of
finished products is taken at Rs.11/ kg and Rs. 250/ kg respectively.
a) Land & Building
Land with an area of 170 Sq Mtr and building with covered area of 136 Sq Mtr. having
the provision of production Hall, Raw Material stores, Finished Goods Store, Office
and laboratory.
Item Area (Sq Mtr) Price per Sq Ft Total Price (Rs.)

(Rs.)
Land 170 103 sq ft 1,88,475
Land Development 170 350 sq ft 6,40,451
Building & Civil Construction 136 750 sq ft 10,97,918
Total 19,26,844
b) Plant & Machinery
Item Details Qty P r i c e Price (Rs.)

per unit
(Rs.)
Tray dryer Volt: 230, watt 6kw; motor 3HP; 1 100,000 100,000
model: Horizontal air flow; capacity
15kg; Temp range 200oC
Deep fat fryer Temp range 300oC6lit; single phase; 1 15,000 15,000
2kW
M e c h a n i c a l 11 blades; 0.5hp 1 50,000 50,000
Slicer
Peeling and Knives set 10 5,000 50,000
slicing knives
BANANA CHIPS 39
S e a l i n g Impulse sealing-for sealing of LDPE/ 2 5,000 10,000

machine-pedal HDPE/Nylon/Laminates-pedal
operated operated-
Steam jacketed Capacity:20kg 1 22,000 22,000
blancher
Total 2,02,000
c) Utilities
Power requirement will be 38350KWH ( 9 Rs per Unit) and around 182.5 Kiloltrs. (9rs
per KL) of water shall be required every year day for washing, potable and sanitation
purposes. Total cost of utilities is estimated at Rs. 3, 45,000 lacs.
d) Prel. & Pre Operative Expenses
A provision of Rs. 30,000 is made towards pre-production expenses like registration,

establishment and administrative expenses, travelling, interest on loan during
implementation trial run expenses etc.
e) Staff and Labour
Particulars No. Salary (per Month) Total Price (Rs.)

Rs. per annum
Plant Supervisor 1 20,000 2,40,000
Operator 1 15,000 1,80,000
Semi Skilled Labour for processing 3 4200 per person 1,51,200
Semi Skilled Labour for packaging 2 4200 per person 1,00,800
Marketing Executive 1 10,000 1,20,000
Total 7,92,000
f) Working Capital Assessment
Particulars Period Margin Total Bank Promoters

Stock of Raw 1day 25% 21,370 16,027 5,343
Material
Packing 7 days 25% 44,109 11,028 33,082
Material
Stock of 3 days 25% 84,773 63,580 21,193
Finished
Goods
Receivables 7 days 25% 4,79,452 3,59,589 1,19,863
Total 6,29,704 4,72,278 1,57,426
BANANA CHIPS 40
g) Cost of the Project and Means of Financing
S. No. Item Amount

1 Land and Building 19,27,369
2 Plant and Machinery 2,02,000
3 Prel. & Preoperative Exps. 30,000
4 Misc. Assets 30,000
5 Contingencies @ 10% on Building 2,12,937
and plant and machinery
6 Working Capital Margin 1,57,426
A Total 25,59,732
Means of Finance
1 Promotors’ Contribution 6,39,933
2 Term Loan from Bank 19,19,799
B Total 25,59,732
Debt Equity Ratio 3 3:1
Promoters’ Contribution 25%

3.5. PROJECTED PROFITABILITY
a) Production Capacity
The rated production capacity of the plant is 100 M Tons / year whereas actual
capacity utilization is expected to be 60 % and 70 % during 1st year and 2nd year
respectively.
b) Sales Revenue at 100%
Product Qty ( Metric Tons) Selling Price (Rs. /Kg) Total sales (Rs.)
Banana Chips 100 250 Rs. Per kg 2,50,00,000
c) Raw Material Required at 100%
Product Qty (Metric Tons) Price (Rs. / ton) Total (Rs.)

Banana 600 (600000) 10 per kg 60,00,000
Edible oil 3.5 (35000) 50 per kg 17,50,000
Spices/Flavours, ---- ----- 50,000
Salt etc.
Packing Materials ----- ------ 23,00,000
Total 1,01,00,000
BANANA CHIPS 41
d) Projected Profitability
S. No. Particulars 1st year 2nd year

A Installed Capacity 100
Capacity Utilization 60% 70%
Sales Realization 1,50,00,000 17500,000
B Cost of Production
Raw and Packing Material 60,60,000 70,70,000
Utilities 2,07,000 2,41,500
Salaries 7,92,000 7,92,000
Stores and spares 4,50,000 5,25,000
Repair and maintenance @ 2.5% 3,75,000 4,37,500
Selling and distribution expenses @ 25% 37,50,000 43,75,000
Administrative expenses 3,00,000 3,50,000
Total 1,19,34,000 137,91,000
C Profit before Interest and Depreciation 30,66,000 37,09,000
Interest on Term Loan 1,91,980 1,21,189
Interest on working capital 56,673 68,000
Depreciation 30,300 25,755
Net Profit 27,87,047 34,94,056
Income Tax @ 20% 5,57,409 6,98,811
Profit after Tax 22,29,637 27,95,245
Cash Accruals 22,59,937 28,21,000
Loan Repayment 0 7,00,000
e) Break Even Point Analysis
S. No. Particular Amount

Sales 1,50,00,000
Variable Cost
Raw and Packing Material 60,60,000
Utilities 1,44,900
Salaries 4,75,200
Stores and spares 4,50,000
Repair and maintenance @ 2.5% 3,75,000
Selling and distribution expenses 26,25,000
Administrative expenses 1,50,000
Interest on working capital 56,673 1,03,36,773
Surplus 46,63,227
Fixed Cost 18,75,389
Break Even Point 40
BANANA CHIPS 42
f) Debt Service Coverage Ratio (DSCR)
Particular 1st Year 2nd Year

Cash Accruals 22,59,937 28,21,000
Add - Interest on TL 1,91,979.9 1,21,188.9
Total (A) 24,51,917 29,42,189
Payment of Interest on TL 1,91,979.9 1,21,188.9
Repayment of TL 0 7,00,000
Total (B) 1,91,979.9 8,21,188.9
DSCR (A)/(B) 12.77 3.58
Average DSCR 8.18
g) Internal Rate of Return (IRR)
Year Cash Accruals IRR

Cost of Project -25,59,732
1 22,59,937 -12%
2 28,21,000 58%
3 45,00,000 93%
4 45,00,000 105%
5 45,00,000 109%
109%
3.6. SOURCES OF PROCESSING TECHNOLOGY

Central Food Technological Research Institute (CFTRI), Mysore (A constituent
laboratory of Council of Scientific and Industrial research, New Delhi).
3.7. PLANT AND MACHINERY SUPPLIERS

a) ECONOMODE, 118 / 105, Mumbai, Maharashtra Pin-400 066. Tel: (022)
28091223/ 28091274/ 32593325. Options: Manufacturer and supplier of snack
food frying equipments like circular fryer, continuous fryer, rectangular fryer,
mini rectangular fryer and ecoflam burner for banana wafer and more.
b) Labh Group of Companies (Snacks Plant Division) India. Contact: M. Sen. Tel:
91-79-30070400. Options: Fresh Banana chips making machines manufacturer
c) Sunil Commercial Corporation, Near Gole Building, Jodhpur. Rajasthan 342

003. Tel: (0291) 2433252. Options: Manufacturing food processing machines
like circular fryers for products like banana wafers, pellets etc.
d) Maruti Machines Private Limited, Plot No: 95, Road No: 8, Kathwada GIDC,
Ahmedabad, Gujarat, India. Website: http://www.marutimachines.com,
http://www.marutimacpack.com. Tel: 91-079-29701864 Options: PACKING
CHIPS
BANANA CHIPS 43
e) Hari Om Industries, Dhebar Road (South), Atika Ind. Area, Str.No.3, Nr. Jaydev
Foundry, RAJKOT – 360 002. Options: Banana Wafer Machines, Other Food
Processing Machines
f) Gopal Desai (Partner) for banana chips / wafer plant (300 Kg. per day). http://
tinytechplants.tradeindia.com/company-information.html Ref: Supplier and
Manufacturer of technologies and tiny plants
g) M/S Sanjivan Industries Private Limited (TM) Capacity 125 k. G. per hour.
http://sanjivan.tradeindia.com/contact-us.html Options: Manufacturer of
Banana Chips Making Machine.
h) Heat and Control E2, 3rd Avenue, Anna Nagar East , Chennai 600 102, India
tel:+91 44 4210-3950/51 or +91 44 2621 2943/44, fax: +91 44 4210-3949
3.8. BANANA CHIPS MANUFACTURERS:
Tamil Nadu:
1. A-1 Chips and Exports India Pvt Ltd.
R.D.M.Chinna, Thottam,
Kalayampalayam (P.O) pachapalayam,
Coimbatore-641010
Tamil Nadu INDIA

Phone: +914222477461
E.Mail:[email protected]
Web: www.a1chips.in
2. Banana Slice (India) pvt.Ltd.

44, Kalingarayar street,Ramnagar
Coimbatore-641 009,
Tamil Nadu
Phone: +914222231067
[email protected]
3. Tasty Chips and Amaiya Ice-creams

12, Nacharkoil Street,
Woraiyur, Trichirappalli,
Tamil Nadu
Phone: 09443422005
E.Mail:[email protected]
Kerala:
1. Tierra Food India Pvt. Ltd.,
Kinfra Food Processing Park,
Elamanoor, Kerala 691 524.
Phone: + 91 8943347333
BANANA CHIPS 44
Administrative and legal

formalities For commencement
of New Business
INTRODUCTION 45
INTRODUCTION 46
ADMINISTRATIVE AND LEGAL FORMALITIES FOR COMMENCEMENT

OF NEW BUSINESS
1. Licensing and Registration of Food Businesses
• In exercise of the powers conferred under section 92 of the Food Safety and
Standards Act, 2006, FSSAI makes it mandatory for all Food Business Operators
in the country to be registered or licensed in accordance with the procedures
laid down in the regulation.
• No person shall commence or carry on any food business except under a license.
• Any person desirous to commence or carry on any food business shall make
an application for grant of a license to the Designated Officer, along with
particulars and fees as may be specified by regulations.
• No license fee will have to be paid for the remaining period of the validity of
the earlier license or registration granted under any of the said Acts or Orders.
• A single license may be issued by the Designated Officer for one or more articles
of food and also for different establishments or premises in the same area.
• If the articles of food are manufactured, stored, sold or exhibited for sale at
different premises situated in more than one area, separate applications shall
be made and separate license shall be issued in respect of such premises not
falling within the same area.
• An appeal against the order of rejection for the grant of license shall lie to the
Commissioner of Food Safety.
• A license unless suspended or cancelled earlier shall be in force for such period
as may be specified by regulations, at the time of grant of license.
• Non-compliance with the provisions laid under the regulation by a Food Business
Operator will attract penalty
• The Licensing Authority, if it has reason to believe that the FBO has failed to
comply with all or any of the conditions of the existing registration or license
or the safety requirements given in Schedule 4, may give appropriate direction
to FBO
• License for commencing or carrying on food business, Central Licensing

Authority, provided that Food Authority may through notification make such
changes or modify the list given in the Schedule I as considered necessary.
• License for commencing or carrying on food business, which are not covered
under Schedule 1, shall be granted by the concerned State/UT’s Licensing
Authority.
ADMINISTRATIVE PROCEDURE 47
• The Food Business Operator shall ensure that all conditions of license and safety,
sanitary and hygienic requirements contained under different Parts depending
on nature of business are complied with at all times .
• Provided that the Licensing Authority shall ensure periodical food safety audit
and inspection of the licensed establishments through its own or agencies
authorized for this purpose by the FSSAI.
• Provided further that no person shall manufacture, import, sell, stock, exhibit
for distribution or sale any article of food which has been subjected to the
treatment of irradiation, except under a license obtained from Department
of Atomic Energy under the Atomic Energy (Control of Irradiation of Food)
Regulations, 1996.
2. Administrative procedure
Steps to Set Up an Industry (Directorate of Micro & Small Scale Enterprises,

Government of West Bengal)
• Execution of partnership deed / Articles & Memorandum of Association and

obtaining Certificate from the Register of Companies / Registration with the
Register of Co-Operatives in case of Co-operative Societies.
• Apply to Corporation / Municipality / Panchayat for locational clearance and

get certificate of enlistment / license.
• Apply in prescribed format to the West Bengal Pollution Control Board, Paribesh
Bhaban, 10A, Block-LA, Sector-III, Salt Lake City, Kolkata – 700 091 for No-
Objection Certificate (NOC). For some specified group of items, NOC’s are
provided from District Industries Centre. (Contact District Industries Centre for
details beforehand).
• Apply to District Industries Centre in prescribed format (available with District

Industries Centre) for Provisional / Temporary Registration.
• Arrangement of land (outright purchase or rented). In case of lease-hold land

for factory, at least 21 years terms may be preferred.
• Obtain quotation of machinery and raw materials from Authorized Dealers /

Manufacturers.
• Preparation of scheme / project report for the proposed item / items of

production / process / service. (Investment Employment ratio should be Rs.
50,000/- : 01, to come under AEP Scheme of the Government).
• Apply to CESC or WBSEB in prescribed format available at DE / SE / SS office,

along-with Trade License, Rent receipt, SSI (Provisional/ Temporary) Registration
Certificate, scheme etc., for electric power line in consultation with WBSEB
/ CESC. (Contact District Industries Centre with documentary evidences for

recommendation for priority, if required).
• Submission of scheme / project report supported with current price quotation

of machinery and raw materials, trade license and other related papers to DIC
/ Directorate of C & SSI, West Bengal, N. S. Building, 9th Floor 1, K. S. Roy
Road, Kolkata - 700 001 / SISI, Government of India, 111 & 112, B. T. Road,
Kolkata - 700 108 for vetting.
• Loan application to Financial Corporation / Commercial Bank through DIC, or

directly as desired.
• Apply to District Industries Centre for loan under Margin Money Scheme in
scheduled format along with copy of Provisional / Temporary SSI Registration,
copy of vetted scheme, bio-data, and copy of sanction advice of WBFC / Bank
etc. in duplicate / triplicate as the case may be. Immediately contact District
Industries Centre after sanction of Bank / WBFC.
• Apply to the Commissioner, Commercial Taxes, 14, Beliaghata Road, Kolkata –

700 015 in scheduled format (available with S.T. Office) endorsing a copy to the
concerned CTO, Commercial Taxes for necessary registration.
• Placement of order for supply of Machinery to the authorized dealers or

manufacturers, after sanction or project in consultation with BANK / WBFC
and DIC.
• Construction of factory shed and building (in case of own or lease hold) with
prior approval of plan from appropriate authority of the area.
• Installation of Plant & Machinery and Electric Power Line.
• Recruitment of Staff & Workers.
• On commencement of production, apply to West Bengal Pollution Control Board,

Kolkata for getting Pollution Clearance (Consent to Operate [COO]) from them.
For some specified group of product apply to DIC. (Contact District Industries
Centre for details beforehand).
• Apply to District Industries Centre for PMT / FNL SSI Registration in prescribed
format (available with DIC to be procured on production of valid Trade License/
Certificate of Enlistment). Application for PMT / FNL SSI Registration is required
to be submitted to DIC with all requisite documents positively within 6 [six]
months from date of commencement of production to avail benefits of State
Incentive Scheme.
• Apply to National Small Industries Corporation Limited, 20 Abdul Hamid Street,

Kolkata 700 069 in prescribed format for single point registration for marketing
assistance.
• In case of installation of captive power generating set, permission to be

obtained from the District Administration and NOC to be obtained from CESC
or WBSEB and WBPCB. The D. G. set to be finally registered with the office of
the Chief Electrical Inspector, 1, Harish Mukherjee Road, Kolkata – 700 020.
• Regular linkage with all the concerned agencies like Bank / Financial Institution/
DIC/ SISI to provide feedback of information to them for guidance, if necessary.
• In case of Expansion / Modernization of the existing unit, prior approval of

the expansion scheme / project from DIC/ Directorate of C & SSI, West Bengal
/ SISI Kolkata and due recording of the same in PMT / FNL SSI Registration
Certificate are required to be obtained.
3. Tax Incentives provided by Ministry of MSME
CAPITAL INVESTMENT SUBSIDY
• For new Micro & Small Enterprise in Zone C & D
– Micro enterprise in Zone C – 25%
– Micro enterprise Zone D – 40%
– Small enterprise in Zone C – 15%
– Small enterprise in Zone D – 30%
a) Subject to a ceiling of Rs 50 Lakh for Small Enterprise.
b) 20% additional subsidy on admissible subsidy for all enterprises wholly owned by
women, SC/ST and minority community entrepreneurs.
c) These entrepreneurs will also get incentive for setting up of units in Zone A & B
as follows :
- Micro Unit – 15%
- Small Unit – 10%
d) This incentive would be in addition to what the units get from GoI under any other
scheme.
INTEREST SUBSIDY ON TERM LOAN
Micro & Small Enterprise
• Subvention of 6% for all units and 7.5 % for units set up in the C and D Zone
districts for 5 years.
Medium Enterprise
• Zone B & C – 25% of total Term Loan Interest subject to ceiling of Rs. 175.00
Lakh per year for 5 years.
• Zone D – 25% of total Term Loan Interest subject to ceiling of Rs. 175.00 Lakh
per year for 7 years.
ELECTRICITY DUTY
• 50% waiver for 5 yrs for Zones A & B & 75% for Zones C & D.
• The units set up in any zone and wholly owned by women, SC/ST and minority
community entrepreneurs will be eligible for 100% waiver for 5 years.
Medium Enterprise
• Zone B & C - 100% waiver of electricity on the electricity consumption for 5

years subject to maximum of Rs. 25.00 Lakh per year or Rs. 1.25 Crore for 5
years.
• Zone D – 100% waiver of electricity duty on the electricity consumption for 5

years and 75% waiver from the sixth year upto tenth year subject to maximum
of Rs. 50.00 Lakh per year or Rs. 2.5 Crore in 5 years.
POWER SUBSIDY
• Subsidy of Rs. 1.00 / Kwh for Zone A & B
• Subsidy of Rs. 1.50 / Kwh for units in Zone C & D
For 5 years; subject to a ceiling of Rs 20 Lakh per annum for small enterprises and
Rs 30 Lakh for medium enterprises. West Bengal MSME Policy 2013-18
INCENTIVE FOR ENERGY EFFICIENCY
• 50% re-imbursement of the cost of energy audit undertaken by an certified

agency to be available after implementation of the recommendations.
• 25% reimbursement of the cost of installations for energy conservation as per

energy audit subject to a ceiling of Rs 2 Lakh.
STAMP DUTY & REGISTRATION FEE
• 100% for units in Zone D, 75% for Zone C, 50% for Zone B and 25% for Zone A.
Medium Enterprise
• B, C & D Zone refund @ 75% of Stamp Duty.
ENTRY TAX
• Reimbursement of ET on plant and machinery available after beginning of

commercial production by the unit.
• Reimbursement of ET on procurement of raw materials for the initial 3 years.
VAT
Micro, Small & Medium Enterprises
• Zone B & C – 80% VAT refund paid for 8 years or 75% of fixed Capital Investment
whichever reached earlier
• Zone D – 90% VAT refund paid for 8 years or 75% of fixed Capital Investment
whichever reached earlier.
CST
Total refund for 3 years from the date of commencement of commercial production.
WATER CONSERVATION / ENVIRONMENT COMPLIANCE
• Assistance upto 50% or Rs 2 Lakh maximum for water conservation/ pollution

control measures.
CLUSTER DEVELOPMENT
• Support upto Rs. 5 crore for common infrastructure such as road, power etc for
each micro and small industrial cluster in Zone B and C.
• Support upto Rs. 10 crore for common infrastructure such as road, power etc
for each micro and small industrial cluster in Zone D.
SKILLED HR
• Undertake measures in collaboration with the industry to provide 10 million

skilled HR over a period of 5 years.
STANDARD QUALITY COMPLIANCE
Micro & Small Enterprise West Bengal MSME Policy 2013-18
• 50% of cost upto a maximum of Rs. 5 lakh for obtaining certification / accreditation
like ISO-9000, ISO-14000, ISO-18000, Social Accountability Standards, OEKO-
TEX etc.
WORK FORCE WELFARE ASSISTANCE
• Reimbursement of 100% in 1st year & 75% in next remaining years expenditure
incurred towards Employees State Insurance (ESI) and Employees Provident
Fund (EPF) as follows: Zone B-5 yrs., Zone C-7 yrs., Zone D-9 yrs.
GI / PATENT REGISTRATION
• State Government will provide consultancy and facilitation services for

identification and registration of Geographical Indicators (GI) of items.
• Reimbursement of 50% of expenditure for obtaining patent registration subject

to a maximum of Rs. 5 lakh.
GRADED SLABS OF INCENTIVES
The districts of the state have been divided into 4 Zones for differential treatment
under this Policy. Considering the needs of inclusive growth, the policy provides
additional incentives for investment in backward regions of the state.
Zone –A : Kolkata Municipal Corporation area, all Municipal areas of North 24 Parganas,
all municipal areas of South 24 Parganas, all municipal areas of Howrah.
Zone – B: District of Hooghly, North 24 Parganas (excluding municipal areas and

Sunderban areas, South 24 Parganas (excluding municipal areas and Sunderban
areas), Howrah (excluding municipal areas), Siliguri Municipal Corporation, Municipal
corporation/municipal areas of Paschim Medinipur, Purba Medinipur, Burdwan &
Nadia.
Zone –C: District of Burdwan (excluding Municipal Corporation/municipal areas),

Purba Medinipur (excluding Municipal corporation/municipal areas), Nadia
(excluding Municipal Corporation/municipal areas), Murshidabad, Malda, Jalpaiguri
and Darjeeling (excluding Siliguri Municipal Corporation)
Zone –D: District of Birbhum, Purulia, Bankura, Paschim Medinipur (excluding

Municipal corporation/municipal areas), Uttar Dinajpur, Dakshin Dinajpur, Cooch
Behar and Sunderban areas of South and North 24 Parganas districts.
Conditions/eligibility of the units for availing incentives /financial assistance under

this policy
• Modern /Hi-tech plant & Machinery to be installed that conform to the standard
productivity.
• Unit will have to strictly observe requisite pollution control compliances.
• Regular Energy Audit is to be conducted and standard energy efficiency to be

ensured wherever applicable.
• Unit will have to follow/maintain labour laws.
• Unit will have to commit to remain in production for at least 5 years from the
date of commercial production. West Bengal MSME Policy 2013-18
• A unit defaulting in payment of any government dues / FI dues will not be

eligible for assistance under this policy
Annexure A: List of sources
INTRODUCTION 55
INTRODUCTION 56
Annexure A: List of sources

1. http://www.pngbuai.com/600technology/658-business-plan-guides/
BANACHIP.pdf
2. http://www.nrcb.res.in/document/vision%202050.pdf
3. http://www.prweb.com/releases/snack_foods/salted_snacks/prweb9382719.
htm
4. http://caloriecount.about.com/calories-bananas-i9040
5. http://www.ncpahindia.com/banana.php
6. h t t p : / / n h b . g o v. i n / m o d e l - p r o j e c t - r e p o r t s / H o r t i c u l t u r e % 2 0
Crops%5Cbanana%5CBanana1.htm
7. http://practicalaction.org/banana-chips
8. http://healthyeating.sfgate.com/benefits-banana-chips-7707.html
9. http://www.celkau.in/Crops/Fruits/Banana/processing.aspx
10. http://www.bar.gov.ph/digest-home/digest-archives/56-2008-2nd-
quarter/1465-aprjun08-banana-7
11. http://faostat.fao.org/site/339/default.aspx
12. http://practicalaction.org/media/preview/10452
13. http://www.fao.org/docrep/006/ad379e/AD379E03.htm
14. http://teca.fao.org/sites/default/files/technology_files/Making%20
Banana%20Chips%20and%20Flour.pdf
15. http://www.agriculturejournals.cz/publicFiles/53321.pdf
16. Banana Breeding: Progress and Challenges , edited by Michael Pillay, Abdou
Tenkouano
17. http://www.omicsonline.org/food-processing-industry-in-india-s-and-t-
capability-skills-and-employment-opportunities-2157-7110.1000260.pdf
18. Rais et al., J Food Process Technol 2013, 4:9
19. Protein Foods & Nutrition Development Association of India (PFNDAI), Enchanting
Snack Foods and Newer Trends: Dr. J. S. Pai :
20. http://www.pfndai.com/Resourses%20Food%20Sci%20Tech/Resources_FS-
enchanting%20snack.pdf
LIST OF SOURCES 57
21. http://www.rboiarmm.org/uploads/DOC_FILES/BananaIndustry.pdf
22. http://hvcdp.da.gov.ph/banana.htm
23. http://www.nrcb.res.in/document/vision%202050.pdf
24. Third Advance Estimates for Horticulture Crops for 2012-2013
25. http://nhm.nic.in/actionplan/actionplan_wb.pdf
26. http://www.indiastat.com/default.aspx
27. http://www.indicat.com/Market-Rates/Commodity-Rates/Banana
28. http://www.alibaba.com/
29. http://www.healthysupplies.co.uk-UK
30. http://www2.woolworthsonline.com.au
31. reports/Horticulture%20Crops%5Cbanana%5CBanana1.htm
32. http://www.foodmanufacture.co.uk/Manufacturing/Fourayes-invests-1.3M-
as-demand-for-jam-spreads
33. http://www.iwmi.cgiar.org/Publications/IWMI_Research_Reports/PDF/
PUB119/RR119.pdf
34. http://www.nutraceuticalsworld.com/issues/2012-11/view_features/
international-markets-report-most-regions-paddle-along-sound-streams-of-
growth/http://www.nutraceuticalsworld.com/issues/2012-11/view_features/
international-markets-report-most-regions-paddle-along-sound-streams-of-
growth/
35. http://organicwellnessnews.com/en/safety-and-nutrition-drive-baby-food-
demand-globally/
36. http://www.freshlydried.com/banana-dried-fruit-bag
37. h t t p : / / n h b . g o v. i n / m o d e l - p r o j e c t - r e p o r t s / H o r t i c u l t u r e % 2 0
Crops%5Cbanana%5CBanana1.htm
38. http://www.fao.org/docrep/v5030e/v5030e0o.htm
39. http://www.fao.org/news/story/en/item/38013/icode/
40. (http://www.niir.org/profiles/profiles/banana-products-banana-flavour-
banana-puree-banana-based-industries-banana-processing-banana-
concentrate-banana-pulp-banana-wine-banana-beer-banana-chips-wafers-
banana-powder/z,,25,0,a/index.html)
LIST OF SOURCES 58
Notes
INTRODUCTION 59
INTRODUCTION 60
Notes
NOTES 61
Notes
NOTES 62
Notes
NOTES 63
Notes
NOTES 64
The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the
development of India, partnering industry, Government, and civil society, through advisory and
consultative processes.
CII is a non-government, not-for-profit, industry-led and industry-managed organization, playing a

proactive role in India's development process. Founded in 1895, India's premier business association
has over 7400 members, from the private as well as public sectors, including SMEs and MNCs, and an
indirect membership of over 100,000 enterprises from around 250 national and regional sectoral
industry bodies.
CII charts change by working closely with Government on policy issues, interfacing with thought
leaders, and enhancing efficiency, competitiveness and business opportunities for industry through a
range of specialized services and strategic global linkages. It also provides a platform for consensus-
building and networking on key issues.
Extending its agenda beyond business, CII assists industry to identify and execute corporate
citizenship programmes. Partnerships with civil society organizations carry forward corporate
initiatives for integrated and inclusive development across diverse domains including affirmative action,
healthcare, education, livelihood, diversity management, skill development, empowerment of women,
and water, to name a few.
The CII theme of ‘Accelerating Growth, Creating Employment’ for 2014-15 aims to strengthen a growth
process that meets the aspirations of today’s India. During the year, CII will specially focus on economic
growth, education, skill development, manufacturing, investments, ease of doing business, export
competitiveness, legal and regulatory architecture, labour law reforms and entrepreneurship as growth
enablers.
With 64 offices, including 9 Centres of Excellence, in India, and 7 overseas offices in Australia, China,
Egypt, France, Singapore, UK, and USA, as well as institutional partnerships with 300 counterpart
organizations in 106 countries, CII serves as a reference point for Indian industry and the international
business community.
Confederation of Indian Industry

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West Bengal Govt Project Report For Banana Powder Processing

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West Bengal Govt Project Report For Banana Powder Processing

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Feasibility Study of Banana Processing

Unit in West Bengal

India’s geographical situation gives it the unique advantage of connectivity to

Confederation of Indian Industry (CII) Food and Agriculture Centre of Excellence

Accelerating the growth of agriculture production is therefore necessary not only to

BRICs and Philippines Country Name 2005 2010 2011 2012

Agriculture value Brazil 3477.61 4705.83 5019.42 5035.23

Value addition in Agriculture/Food processing sector forms a significant segment of

1.2. Status of Banana Production: Global, India, West Bengal

Table: 2 Major producing countries of Banana in the world (2010)

Country Area(000’ha) Production(000’MT) Productivity % Share in

Source: (NHB Advance Estimates 2012-13)

State Varieties grown

Kerala Nendran (Plantain), Palayankodan (Poovan), Rasthali,

District Variety Sample Average Average Average

1.3. Developments in banana trade

Source: Banana Market Review and Banana Statistics 2012-2013, FAO

Exports from Asia showed a remarkable recovery: After substantial declines in

Source: Banana Market Review and Banana Statistics 2012-2013, FAO

1.4. Market for Banana

Source: http://agriexchange.apeda.gov.in/Market%20Profile/one/BANANA.aspx (DGCIA)

1.5. Value Addition in Banana

Table 1. Nutritional Comparison of the crops used for Chips Processing

Nutrition Facts per 100g

1.6. SWOT FOR BANANA PROCESSING IN WEST BENGAL (WB)

Opportunity (Additional Incomes from Processing)

Threats (Market Awareness)

Positioning of processed foods for SME’s needs nuanced marketing approaches.

Value addition at processing level in India is relatively low at present. Increased

Section 2 - Banana Powder

SECTION 2 - BANANA POWDER

2.1. RAW MATERIAL AVAILABILITY

Regional Banana Characteristics:

Source: Primary Survey of 150 farmers in each district

Source: Primary Survey of 150 farmers in each district

Source: Primary Survey of 150 farmers in each district

Source: Primary Survey in Coimbatore Market

S. No. Item Amount

2. Area with access to roads, transportation facilities, banking infrastructure and

3. Major cities or towns

4. Ports, railways and Airports

2.1.1. District-wise Financial Inclusion in West Bengal:

2.1.2. District-wise Road Length in West Bengal

Bankura 1170 16 1186

Source: NHB 2013

2.2. MARKET OPPORTUNITIES

Source: http://www.ats-sea.agr.gc.ca/inter/5852-eng.htm (Agriculture and Agri-Food Canada, Govt of Canada:

2.2.2. Marketing Strategy

Since banana powder is majorly used as an ingredient in multiple products, an

According to a research conducted for exploring the marketing channels available

2.3. PROJECT DESCRIPTION

The following section provides the financial analysis of manufacturing 72 tonnes

a) Product & Its uses

The proposed capacity of the plant is to produce 72 MT / annum of banana powder.

2.4. PROJECT COMPONENTS & COST

• The plant will work for 240 days in a year.

• Transportation Cost: INR 3/Kg (Prices in Tamil Nadu)

• Cost of Electricity: Rs.9/ Unit

• Cost of Water: Rs.9/ per KL