3. Executive summary
India is a tropical country and has accorded a favorable reception to thirst quenchers
such as fruit juices and aerated drinks. Ready to serve kiwi juice is a beverage
prepared from clarified kiwi juice. When chilled the RTS beverage makes for a
nutritious and refreshing drink. The nutritive value of real fruit beverages is far
greater than that of synthetic products, which are being bottled and sold in large
quantities throughout the country. If real fruit juices could be substituted for these
synthetic preparations, it would be a boon to the consumer as well as the fruit grower.
India is a market of diversity – diverse with regards to incomes, price points of
products, culture and preferences and a marketer has to get use to these diverse
characteristics of the market.
Drinking juice is not a part of our culture. We drink water with our meals but in the
West one starts the day with breakfast and a glass of juice. Juice is to a great extent
considered as a luxury not a necessity in our society, surely but slowly things are
changing mainly in the urban and semi urban areas, where the population is getting
more and more health conscious and are realizing the important nutrient values of
fruit and are making them a part of their daily diet.
The companies in this Rs. 100 crore industry will have to organize various
promotional activities from time to time mainly to increase sampling and to educate
the consumers about packaged fruit juice that it is as pure and nutritious as fresh juice
which is perceived as fresh as it is extracted in their presence i.e. actual or assumed.
There are two main brands in this segment of non- carbonated drink markets; they are
‘Real’ from Dabur and ‘Tropicana’ from PepsiCo. These two players command
around 80% market share in the organised sector.
We can observe this industry growing and new players entering the market. In recent
times we have seen the entries of some international brands, like Berri [Australia],
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4. Ballantyne [Australia], and Tipco [Thailand], with the intention to strengthen their
hold in India and to grow with the market.
Company
Nitro Enterprises Pvt. Ltd will be entering the food processing industry with its first
launch i.e. a Kiwi fruit juice.
Three of the four investors have full operational responsibilities. SD and SY are the
co-founders and have both entrepreneurial and industrial experience. PB brings
operational management and financial skills to the operation.
Nitro Enterprises Pvt. Ltd has a Strategic Alliance with the New Zealand based
company Zespri International Limited to supply the kiwi fruits to India. Pursuant to
our company policy stating "Quality First, Credit Prominent", we process our
KiwiJoos with strict production standard, quality control and sophisticated processing
technology, we at all time provide our consumers the natural and healthy Kiwifruit
juice.
Our Start up costs, listed below, has been financed to date by the investment from its
owners. Following are the parameters:
Particulars Amount
Land & site development;[x[ acres @ Rs. [y] lakh per acres 87crore
Building and civil works 89crore
Plant and machineries 6ocrore
Miscellaneous Fixed Assets 75crore
Preoperative expenses 35crore
Preliminary expenses 10crore
Technical know-how and engineering fees 20crore
Contingencies @ 10% 50lakh
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5. Capital Expenditure 120crore
Project cost 496.50crore
COMPANY PROFILE
LOCATION
COMPANY NAME : SWASTIK FRUITS PRODUCT PVT.LTD COMPANY
PROFILE : SALES AND MANUFACTURER
ESTABLISHED IN : 1985
DIRECTOR : MANOJ.V. PARAB
MAIN OFFICE NITRO ENTERPRISES PRIVATE LIMITED
. MHB COLONY BORIVALI -400068 MAHARASHTRA
MARKETING DIV : SWASTIK CHAMBERS, 3rd FLOOR,
GOPAL COMPLEX, MUMBAI
MANUFACTURING UNIT/PLANT : TATISILWAI, INDUSTRIAL AREA
PHASE 2 GORAI (MUMBAI)
EMPLOYEE : 500
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6. Market Analysis
Market Analysis Summary:
One can sense an evolution that the industry has seen with development in the tetra-
pack market, there also has been a natural progression from drinks to nectars to juices
and while traditionally fruit drinks were aimed at children, the new brands like
‘Onjus, Real, and Life’ have focused on young adults and professionals.
Although fruit drinks focus strongly on out of home consumption, the juices and
nectars have been concentrating on takeaways or in-home consumption with more
choice coming in, the tetra- pack market is likely to witness further segmentation.
Packaged fruit juices are getting recognized as social drinks now, with dominant
consumption being observed in the company of family and friends. People have
started to perceive fruit juices as anytime beverages, with consumption being spread
more or less evenly between the mid mornings, afternoons and evenings. And
generation now is as much inclined to sipping fruit juices as colas, with teenagers
driving the maximum trials.
If the findings of a usage and attitude study conducted by market research agency
Indica Research across 1200 adults in Sec A and Sec B households in Delhi and
Mumbai are anything to go by, then its not just champagnes and colas that qualify as
social beverages.
Market Segmentation:
There has been no general acceptance of the product forms in the fruit beverage
market. The consumer is basically concerned if it is a fruit juice or synthetically
constituted product. Product segmentation, therefore, should be clearly delimited.
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7. • Under the fruit drinks the first segmentation is between real fruit drinks and
synthetic drinks.
The real fruit drinks are based on natural fruit pulp or juice.
The synthetic drinks are synthetic products with fruit or other flavors.
• Broad taste preferences could be another way to define the market. The market is
at present also segmented on the basis of fruit pulp content. For the purpose of
segmentation, on the basis of fruit pulp content. For the purpose of
segmentation, on the basis of fruit pulp content, market can be segmented as:
Fruit juice with pulp content more than 80%. Brands falling in this
category are Onjus, Real, Tropicana, etc.
Fruit Nectar with pulp content between 40% to *0%. Life and X’s come
in this category.
Fruit Drinks with pulp content less than 40%. Frooti and Jumpin are the
popular brands in this category.
Market Needs:
Consumers usually, are not going to accept something that doesn’t taste good even if
it is good for them or has certain benefits. Companies working to bring a new food
product to the market have two questions—does it taste good and will consumers buy
it?
Industry analysis:
The Rs 100 crore packaged fruit juice market is estimated to be growing at 20% to
25% annually, with Tropicana and Real holding 40% market share each.
The market can be categorized in terms of product content and there are three major
product contents available.
• Drinks: Juice with pulp content less than 40%,
• Nectars: Juice with pulp content between 40 - 80%,
• Juices: Juice with pulp content more than 80%,
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8. The canned juice market initially covered brands like NAFED, Noga, Midland, Gold
Coin and Druk. These were fruit juices and nectars and not drinks. But they did not
make a mark in the market due to reasons such as high price, unattractive packaging
and lack of right promotion programme.
Parle Agro’s Frooti, a mango drink, was introduced in the tetra pack in 1985 and
since then has been a leader in its segment. The market has suddenly picked up since
1994-95 and a few players have emerged as market leaders.
Leading Manufacturers of Fruit Beverages in India:
Company Brand flavours
1. Parle Agro Frooti Mango, Guava, Pineapple, Strawberry &
Orange
Appy Apple
2. PepsiCo Ltd. Tropicana Orange, Nature Sweet, Apple,
Grape, Pineapple, Tomato, Mixed Fruit.
Slice Mango, Litchi, Orange & Guava.
3. Dabur Real Grape, Guava, Orange, Pineapple, Tomato,
Mixed Fruit, Litchi, Mango.
Real Active Orange, Apple
4, Godrej Foods Jumpin Orange, Apple
Re Orange, Apple
Xs Orange, Apple
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9. Imports:
With a whole range of product lines opened up for imports over the past 14 months,
these exporters have now full freedom to exploit the huge Indian market. The fruit
juice market in India is not yet large enough to justify investing.
Today the consumer has got a wide variety to choose from as many foreign food and
personal products can come in unrestricted now. The Indian market place has seen a
dramatic increase in the range and quality. There is expected to be some level of
competition in these areas. Quality will have to improve and manufacturers will have
to be more cost effective.
Consumer’s belief in India products too is going up; earlier issues were of durability
and poor shelf life. Now, Indian products have moved up to the next level. This could
make it tough for imported products to make a dent in established categories,
especially where there is a substantial price difference.
Problems with imports:
• The imported products on offer in most stores stocking foreign foods reveal that
they are close to their expiry dates.
• The other problem that retailers face is that since they are dealing with agents
there is a problem of returns of products when they are past expiry dates. Its not
an issue when a retailer is dealing with a company as there is a mechanism for
accepting returns. At times companies are seen to import through their own
channels and supply it to the retailers.
• India is a difficult market mainly because of delays at the docks, tariffs and duties
on various products, bribery and corruption and the lack of a cold chain (for
horticulture produce). Things when they arrive do not get straightway into cold
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10. storage i.e. the inadequate infrastructure to handle the distribution of fresh
produce, which causes a rapid deterioration in the quality.
Main Competitors:
A host of brands are jostling for thirst space. Not just colas but beverages and fruit
juices of all hues are adorning shop shelves. From bottled iced-tea to branded chhaas,
fruit-based drinks and flavoured milk, beverage makers have gone berserk with
product innovation as new variants continue to flood the market. Fruit drinks are high
on the swig list in summers as it is part of the health fad sweeping the nation. Health
conscious consumers are increasingly giving aerated drinks the go by and making a
beeline for fruit-based concoctions. Moreover, sporadic controversies about pesticide-
infested cola drinks are said to be driving consumers towards fruit-based drinks as a
safer alternative. That is why even existing players are going all out to pour out new
flavours.
Dabur:
Dabur Foods that was set up in 1997 has brands like Hommade, Lemoneez and
Capsico in its basket. The Rs. 37 crore Dabur Foods ltd, a wholly owned subsidiary of
Dabur India ltd ahs two brands of juice in the market, they are;
• Real
• Real Active
For its Real brand, Dabur is focusing on increasing in home consumption by targeting
mothers and children. It is priced in the range of Rs. 60 to 65 [1 liter] and Rs 15
[200ml] except for Guava that is sold in the range to Rs 65 to 70 and Grape that is
sold for Rs. 70 to 75. Its ingredients are water, fruit concentrate, sugar, citric acid and
flavours of;
• Grape, Guava, Orange, Pineapple, tomato, Mixed Fruit, Litchi and Mango.
The Real Active brand is targeted towards fitness- crazy young consumers. The drink
is positioned on the health plank. It was launched towards the end of 2002. At the
same time, the company plans to position Real Active as its premium juice brand,
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11. while Real would be targeted at consumers belonging to socio economic categories B
and C also. It contains only fruit concentrate and water. It is priced at Rs. 68 and 70. It
is available in the Flavours of :- Apple and orange.
PepsiCo:
The Pepsi operations in India are now the part of the new Asian division of PepsiCo
Beverages International formed by the merger of PepsiCola International, Tropicana
and Gatorade, the sports beverage company acquired from Quaker Oates. Earlier,
India was one of the eight business division of the beverage company that used to
report to PepsiCo International in New York directly. Now it reports to PepsiCo
Beverage International Asia in Hong Kong. PepsiCo Beverage International is a
division of PepsiCo Inc. This move has been prompted by the need to give greater
regional focus to new products like Tropicana and Gatorade so that they become a key
element of the overall portfolio of the US beverage major.
Tropicana:
Tropicana entered the country in 1998. Tropicana is currently imported in a
concentrated form, which is later reconstructed at a plant in Baramati, near Pune and
vacuum packed into tetra packs after paying an import duty. It covers around 18 cities
of India. The factor of its success is that it has a tightly controlled distribution system
on top of an equally controlled production and this in turn helps it keep its taste
constant and the company boasts of it too.
Tropicana Beverage Co. recently announced the company’s inclination towards
bringing in an entire series of juices and other health drinks from its international
portfolio into India in the coming years. The Tropicana brand, per se, has been
positioned on the ‘health’ platform.
Pepsi also plans to give its juice brand – which has seen many hurdles in the nascent
and niche juice market – a renewed thrust in the coming days. A price revision of the
brands is also on the anvil.
A present Tropicana has the following flavours:
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12. Orange, Nature Sweet, Apple, Grape, Pineapple, Mixed Fruit.
Parle Agro:
Parle Agro Private Ltd is looking at product expansion in its various business
segments to sustain growth in a sluggish market. In the fruit drink segment where
Parle Agro has a hugely popular product ‘Mango Frooti’, it is planning to get into
orange and pineapple under the same brand of Frooti. While orange pulp will be
imported from Brazil, pineapple will be sourced from Thailand.
At the same time, it has also embarked on stretching the franchise of its existing
brands—Frooti, Appy and Bailley Mineral water. It knows the market and has
sustained its brands in spite of the huge unorganized segment. Besides, the company
will use its existing distribution network to get into the new categories. At the
moment, its only advantage is its distribution strength.
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14. Kiwi fruits are small oval fruits with a
thin brown skin, soft green flesh and
black seeds. They are rich in many
Vitamins, flavonoids and minerals. In
particular, they contain a high amount of
Vitamin C (more than oranges), as much
potassium as bananas and a good amount
of beta-carotene.
Anti Oxidant properties of Kiwi Fruit
It is important to note that kiwi fruits contain a remarkable amount of Vitamin C, E and
A. Vitamin C is a water-soluble antioxidant that has been proven to protect our body
from free radicals, dramatically improving the health of individuals who consumed it
regularly against all kinds of disease, from cardiovascular problems to cancer and
obesity. Vitamin E has been proven to have similar effects, but is fat-soluble and thus is
complimentary to Vitamin C in its functions
Kiwi fruits have a high fiber content
The high content in dietary fiber helps improving diseases such as diabetes, by
controlling sugar levels, and cancer color, since fiber binds to toxic compounds in the
colon and helps us expel them. Fiber has also been proven to reduce cholesterol levels,
improving the conditions of patients with cardiovascular diseases and lowering the
probability of heart attacks.
Summary of Kiwifruit Health Benefits
Eating kiwi fruit is clearly a healthy choice, particularly useful in these cases:
• Prevents Asthma
• Prevents wheezing and coughing, especially in children
• Protects our DNA from mutations
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15. • Provides a healthy amount of antioxidants and vitamins
Kiwi Fruit Nutrition Content Research
Nutrient Gold Green Kiwifruit Main Functions
Content Kiwifruit
181 ug/100g 158 ug/100g
Stabilize VA、Inhibit Oxidation
（Flesh） （Flesh） & Free Radicals Prevent
Tumor、Improve
Fecundity、Slow Aging
Vitamin E 3.025 mg/100g 2.72m g/100g
Inhibit Oxidation、Enhance
（Bearing （Seed） （Seed）
Immunity、Participate In DNA
Phenols）
Synthesis、Slow Aging Inhibit
Mutation、 Prevent Cancer
Vitamin C 135.96 154.95 mg/100g
Accelerate Collagen、Synthesis
mg/100g
（Anti-Scurvy （Flesh）
Stop Bleeding、 Accelerate
（Flesh）
Acid）
Amino Acid Metabolism、Inhibit
Oxidation、Activate
Folacin、Expel Toxin
Chlorophyl 481.50 ug/g 222.51 ug/g
Prevent Inflammation、 Inhibit
（Peel） （Peel）
Cancer、Detoxification
Accelerate Wound Close、 Anti-
Cholesterin
Arginine 0.0953% 0.0463% Provide Baby Need Amino
（Flesh） （Flesh） Acid、Accelerate Immunocyte
Activity、Promote Secretion of
Growth Hormone Prolactin and
Insulin
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