Processing for development

Country: India
Shed No. 14-17, Golden Jubilee Bio-tech Park for
Women’s Society, Siruseri Village, SIPCOT –IT complex,
Navalur Post, Kanchipuram District,
Tamil Nadu – 603 103.
Telephone: 91- 44 – 30921081
Mobile : 91-09840758730 / 91-09840080514
E-mail : daeb13@yahoo.co.in
Contact: Mrs. S.Sankaralakshmi, the managing Director

Clients: Households, restaurants, snackbars through supermarkets and direct sales.

Principal strengths and weaknesses

Contribution of the business to rural development

How was the business started ?

The company was formed and registered in 2003 and began production in May 2004.
This company is owned by a couple. The husband is an experienced Charted Accountant and Company Secretary and wife is a graduate home maker. After serving the corporate sector for more than 15 years the husband decided to quit the job and start his own enterprise along with his wife. He visited Europe and USA to study the global market. After his return he decided to enter the area of food processing, which is a sunrise industry in India. He contacted several technological organizations and other service providers in the country and finally chose to invest in banana processing. A MoU was signed with National Research Center for Banana for technical assistance initially for 7 products and later for 2 more products. The Technology Development Board, under Ministry of Science and Technology of Government of India, provided financial assistance based on an investment plan. Private investors are also shareholders and the business is managed by a Board of Directors.

The primary objective of the firm as incorporated in the articles of association of the company is as under to buy, sell, pack, repack, export, import, produce, and otherwise deal in all kinds of dairy, floriculture, horticulture, poultry, biotechnology and other agro and food processing and eco-friendly products of all kinds and description both in India and broad.

Steps in product preparation - Banana flower pickle

Quality characteristic for the flower is that it should be large, un-shrivelled, fresh, varieties other than Cavendish (non-bitter). The fruits used for pickle are generally cooking bananas.

Bracts of male flower buds are removed, individual stamens pulled out, flowers washed, steam blanched, ground into paste, fried using little oil sufficient to remove moisture, spiced, seasoned, cooled to air temp., vinegar added, filled in sterile bottle or pouch, sealed, stored under normal condition. In case of fruit pickle, the fruits are peeled, shredded, blanched, fried, spiced, seasoned as above. Packs are labeled and stored. Finished product is storable up to a year.

Cleaned Flowers

Steaming and frying pickle

Filling & packing of pickle

Sealed Pouches packed in carton

Input access and marketing

Backward Linkage: The business is backwardly linked to market for sourcing the raw material like banana flowers and fruits. Supply of flowers and fruits is arranged through agents from Koyammedu market (main vegetable market of Chennai) who regularly deliver the material at the factory. The payment is made on a contracted price at weekly intervals.

Forward Linkage: The finished product first goes to store room. The sales department delivers it to the retailers, agents or directly to consumers and distributors (locally or in other markets) after billing against cash or credit depending on the arrangement and relationship of the client.
Payment – Advance for outstations or credit for local.
As the product was new to the market initially people were apprehensive about its taste and quality. But who ever once tasted it always went for it second time. New clients identified through exhibitions, expos and road shows in major cities during important events, marketing strategies are not strong, publicity and advertisement is not adequate. Mostly, no professional marketing services used.
The shelf life of the product is one year. But it is sold and consumed within 6 months. In due course several new applications of the product other than as a pickle were found by cooks in canteens and restaurants in Chennai city. Now the product is a runaway success.
Several new variants of banana flower pickles were developed by the company after taking the process technology from NRCB. The process slightly varies from one variant to another.

As the product is new there are no big competitors in this segment. The pickle industry in India is huge and pickles are traditionally an integral part of Indian meal. In modern society with more women opting to go for a job traditional home made pickles are out and bottled or packaged pickles are in. In manufacture pickles, there is convenience, saving of time and choice of variety and taste.
Though professional are not employed for getting market information, the feed back is received through informal sources like consumers during exhibitions and through retailers. The general information about the industry is known through agency reports like CII, FICCI, MOFPI, etc. and internet. Still there are no professional market support or service providers.

NRCB was source for information & services of technology, inputs, consultancy, trial production, quality control, exposure and publicity. As the promoter himself was a corporate employee and professional financial manager he was well informed about several sources of info. for other services. All other needs like feasibility study, market development strategies, Admin, transport & logistics were attended by entrepreneurs themselves.