How to Start RTS Juice, Squash and Syrup Processing and Packaging Business

How to Start RTS Juice, Squash and Syrup Processing and Packaging Business

Project Report 

A variety of soft drinks are being presently produced in the country such as sweetened carbonated (aerated) soft drinks, still beverages containing fruit juice/pulp and soda water falling under the category of RTS (ready-to-serve) beverages. Among these the share of fruit Juice based beverages are very small compared to synthetic carbonated drinks/soda waters. However, the trend is slowly changing for the obvious advantages of nutritious beverages over the synthetic aerated waters. The present volume of the soft drinks business is of the order of Rs. 800 crores per annum. Manufacture of RTS fruit beverages based on fruit juices/pulps are only considered here, as they are nutritious.


QUALITY AND STANDARDS         :           As per FPO specifications

PRODUCTION CAPACITY             :          Fresh fruit 400 tpa or 2 tpd
Juice : 50 MT
RTS : 350 MT
Squash / Cordial 160 MT
Fruit syrup 15 MT
Crush 15 MT


Fruit based beverages are relished when served chilled, particularly during summers. These are delicious as well as nutritious containing the goodness of fresh fruit. Squash, syrup, cordial, crush are diluted with water before use. The juice is used as such. Ready-to-serve beverages are made out of juice, sugar and water and consumed as such. The fruits e.g. pineapple,orange, lime, banana, litchi, passion fruit, other local fruits can be used. The final products are : pure juice, ready-to-serve beverages packed in 200 mL glass bottles; squashes/syrups packed in 500 mL/700 mL/ 1L glass or PET bottles.

Herbal roots, flowers, extracts can also be used to make syrups and squashes. Products made out of ginger-citrus, rhododendron, rose petals, sorrel leaves also have a good demand.


India is second largest producer of fruits (45 million tonnes) and vegetables (90 million tonnes). The wastage of fresh produce is estimated at 25-30% due to transport and marketing problems and lack of processing facililties. Less than 2% of fresh produce is processed. Of late the infrastructural facilities have greatly improved and Govt. of India has laid high priority to food processing sector. Setting up of Food Parks, attractive incentives to the entrepreneurs, phenomenal strides in export and domestic demands have encouraged a large number of new start ups resulting in food processing industry to become a sun rise industry in the country.


a) The unit proposes to work at least 300 days per annum on single shift basis.
b) The unit can achieve its full capacity utilization during the 2nd year of operation.
c) The wages for skilled workers is taken as per prevailing rates in this type of industry.
d) Interest rate for total capital investment is calculated @ 12% per annum.
e) The entrepreneur is expected to raise 20-25% of the capital as margin money.
f) The unit proposes to construct own building as per F.P.O. specifications.
g) Costs of machinery and equipment are based on average prices enquired from machinery manufacturers.


Project implementation will take a period of 8 months. Break-up of the activities and relative time for each activity is shown below:

  • Scheme preparation and approval                              :  01 month
  • SSI provisional registration                                           :  1-2 months
  • Sanction of financial supports etc.                              :  2-5 months
  • Installation of machinery and power connection     :  6-8 months
  • Trial run and production                                                :  01 month



The unit can be set up in Food Park, industrial sheds, fruit growing area or near the market. Availability of raw material, bottles, skilled labour, portable water, road connectivity must be taken into consideration.


The raw material needed for fruit juice/pulp based RTS beverages are : Fruit pulp/juice, sugar, citric acid, preservatives and permitted colours, flavours and other additives. Almost all varieties of the pulpy fruits can be used for the extraction of their pulp or juice. Atleast 3 or 4 varieties of the different fruits are available in almost all parts of the country.

The following fruits are well suited for RTS beverages.
1. Mango 2. Guava 3. Oranges 4. Pineapple  5. Grapes 6. Papaya 7. Acid limes 8. Litchi 9. Passion fruit 10. Apples 11. Banana 12. Pomegranate

During the season the fruits are to be processed and the pulp/juice are to be preserved for the regular use. This can be done either in OTS cans (3.1 kgs or 5.20 kgs) or chemically preserved with sulphur dioxide or sodium benzoate (storage in wooden barrels or HDPE containers). Canned pulp/juice are preferred, as they are superior to chemically preserved pulp in all respects. The pulp can either be extracted at the unit or can be purchased from other manufacturers or got done on contact basis.

Sugar required for the production of RTS beverages can be obtained from the local sugar factories or from wholesale dealers. Other raw materials such as citric acid, colour, flavour and preservatives are available indigenously and can be obtained from the manufacturers directly or through heir dealers.

Bottles (200 ml or 250 ml) are to be obtained periodically depending upon the sales volume. However, for doing a turnover, of 10.0 lakhs bottles, we need 2.0 lakh returnable bottles in circulation, though 1.0 lakh bottles will be sufficient on a 1:10 ratio of utilization. The deposit taken on crates and bottles must form atleast 50% of this investment. Crown corks are to be procured from standard suppliers.

How to Start RTS Juice, Squash and Syrup Processing and Packaging Business, RTS Mango Juice Line
RTS Mango Juice Line

Manufacturing Process Of RTS Juice Line

Fully ripe sound fruits are selected and washed in water. Juice from citrus fruits is extracted using a rosing machine. Pineapple, litchi are peeled, decored, milled and passed through a juice press. Passion fruits are cut, boiled and juice extracted through the pulper. The juice from banana is extracted by pulping the peeled fruit and liquefaction using pectolytic enzyme. The juices are filtered, bottled and pasteurized. For making squash and syrups, sugar-acid syrup is blended with fruit pulp/juice in specific proportion, mixed with preservative and bottled. For making ready-to-serve beverages, the juice or pulp is mixed with acidified sugar syrup, mixed, packed in 200 mL glass bottles and pasteurised.

Quality Control and Standards : As per FPO requirements


There is no major pollution problem associated with this industry except for disposal of waste which should be managed appropriately. The entrepreneurs are advised to take "No Objection Certificate" from the State Pollution Control Board.


The fuel for the steam generation in the boiler is coal or LDO depending upon the type of boiler. Proper care should be taken while utilising the fuel for the steam production. There should be no leakage of steam in the pipe lines and adequate insulation should be provided.


Quantity                                                    :           400 tpa (2 tpd)
Juice : 2.50 lakh bottles of 200 mL
RTS : 17.50 lakh bottles of 200 mL
Squash : 1.60 lakh bottles of 1L
Syrup : 15,000 bottles of 1L
Crush : 15,000 bottles of 1L

Installed capacity                                      :                       1300 kg/day
Optimum capacity utilization                 :                       70%
Working days                                             :                       200/annum
Manpower                                                 :                       40


Motive Power                                            :                       40 kW
Water                                                          :                       25 kL/day
Coal/LD oil                                                  :                       500 kg/120 L/day


Fixed Capital

9.1.1 Land & Building Amount                                                           (Rs. lakh)

Land 1000 sq.m.                                                  :                                   1.30
Built up Area 400 sq. m..                                    :                                   13.70
Total cost of Land and Building                          :                                   15.00

9.1.2 Machinery and Equipment

Description Amount                                                                                (Rs. lakh)

Pulper, fruit mill, rosing machine,                                             :                      22.00
filter press, hydraulic press, bottle
filling machine, crown corking machine,
PP cap sealing machine, mixing tank,
boiler, bottle washing machine, platform
balance, table balance, washing tank,
Flash pasteuriser, pasteurization tank,
labelling machine, ss steam jacketted
kettles, aluminum pans, working tables,
laboratory equipments, knives, buckets etc.
Erection & electrification @10% cost of                                   :                      2.20
machinery & equipment
Office furniture & fixtures                                                           :                      0.80
Total                                                                                                :                      --------

9.1.3 Pre-operative Expenses

Consultancy fee, project report, deposits with                      :                       1.00
electricity department etc.

9.1.4 Total Fixed Capital                                                             :                       41.00

9.2 Recurring expenses per annum

9.2.1 Personnel

Designation                                                               No.     Salary            Amount
                                                                                                Per month     (Rs.lakh)

Factory Manager                                                       1          10000            1.20

Supervisor Production/Sales                                   3          6000              2.16
Office Assistant, Storekeeper                                  4          5000              2.40
Technician, Lab Assistant                                          3          4500              1.62
Skilled workers                                                           6          2500              1.80
Unskilled workers(8 months)                                   23       2000              3.68
Perquisites @15%                                                                                      1.94
Total   :                                                                       40                               14.80

9.2.2 Raw Material including packaging materials

Particulars                                                   Qty.(MT)      Rate/MT                  Amount
(Rs. lakh)

Fresh fruit                                                   400                 5000                          20.00
Sugar                                                           330                 16000                        52.80
Citric acid                                                    3.5                  1,50,000                   5.25
Preservative,colour, essence                   1.5                  -LS-                            7.50
Pet bottles, cap. 1L                                    1.90 lakh      4 each                        7.60
Glass bottles, cap. 200 mL                        13 lakh          4 each                       52.00
Crown corks                                                14 lakh          0.50 each                 7.00
Labels                                                           15 lakh          0.50 each                 7.50
Packing material                                         -LS-                                                   12.85
Detergent, etc.                                            -LS-                                                   0.50
Total   :                                                                                                                  173.00

9.2.3 Utilities                                                                                            Amount (Rs. lakh)

Power                                                                                                                        2.50
Water                                                                                                                        0.20
Coal                                                                                                                           4.00
Total   :                                                                                                                      6.70

9.2.4 Other Contingent Expenses                                                      Amount (Rs. lakh)

Repairs and maintenance@10%                                                              2.80
Consumables & spares                                                                              1.60
Transport & Travel                                                                                      1.10
Publicity                                                                                                        1.00
Postage & stationery                                                                                  0.60
Telephone                                                                                                    0.27
Licence fee & miscellaneous                                                                     0.26
Insurance                                                                                                      0.40
Total   :                                                                                                           8.03

9.2.5 Total Recurring Expenditure                                                     Amount (Rs. lakh)
(9.2.1+9.2.2+9.2.3+9.2.4)                                                                         202.53

9.3      Working Capital                                                                                         50.65
Recurring Expenditure for 3 months

9.4      Total Capital Investment                                                           Amount (Rs. lakh)

Fixed capital (Refer 9.1.4)                                                                       41.00
Working capital (Refer 9.3)                                                                     50.65
Total   :                                                                                                        91.65


10.1   Cost of Production (per annum)                                              Amount (Rs. lakh)

Recurring expenses (Refer 9.2.5)                                                             202.53
Depreciation on building @5%                                                                  0.69
Depreciation on machinery @10%                                                           2.42
Depreciation on furniture @20%                                                              0.16
Interest on Capital Investment @12%                                                     11.00
Total   :                                                                                                           216.80

10.2 Sale Proceeds (Turnover) per year

Item                                                   Qty.                Rate                           Amount (Rs.lakh)
(MT)               per doz.

Fruit juice in 200 mL glass           2,50,000       126                             26.25

Ready-to-serve beverage             17,50,000    78                               113.75
in 200 mL glass bottles

Squash in 1L Pet bottle                 1,60,000       660                             88.00

Syrup in 1L Pet bottle                   15,000          820                             10.25
Crush in 1L Pet bottle                    15,000          700                             8.75

10.3   Net Profit per year

= Sales - Cost of production
= 247.00 - 216.80
= Rs. 30.20 lakh

10.4   Net Profit Ratio

= ( Net profit X 100)/Sales
= ( 30.20 X 100 )/247
= 12.2%

10.5   Rate of Return on Investment
= ( Net profit X 100 ) / Capital Investment
= ( 30.20 X 100 ) / 91.65
= 33%

10.6   Annual Fixed Cost                                                                        Amount (Rs. Lakh)

All depreciation                                                                               3.27
Interest                                                                                             11.00
40% of salary, wages, utility, contingency                                  11.83
Insurance                                                                                         00.40
Total   :                                                                                               26.50

10.7   Break even Point

= ( Annual Fixed Cost X 100 ) / ( Annual Fixed Cost + Profit )
= ( 26.50 X 100 ) / ( 26.50 + 30.20 )
= 46.7%


A careful selection of sound fruits is necessary. The facilities can also be utilised to manufacture squashes, jams, jellies, marmalades etc. The plant can be operated in full capacity in summer months. Products like mango, pineapple, grapes, mixed fruit based RTS beverages have to be produced regularly. The idle capacity if any can be utilized for making tomato products, jams, etc. in lean period, so that the viability of the unit can be better achieved.


RTS Juice Processing & Packaging Line 


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