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Project Charter
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Mango pulp processing plant

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3/22/2009

Group-5

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Project Charter
Project Title: Establishing a processing plant for canned mango pulp
Prepared by: team 5
Date: 17 Mar. 09
Version:

Background to the Project

The project is for establishing a unit to manufacture canned mango pulp. The demand for the
product is increasing due to development of mango beverage industry. Varieties which have
low fibre and high quantity of pulp are best suited for making pulp. Totapuri and Neelam
varieties in the Southern Region, Chousa and Langra in the Northern and Central Region can
be considered as suitable.

Aims & Objectives:

The aim of the project is to fulfil the demand of consumers which are in the processing of
mango pulp into finished items like mango juice and other beverages. Potential customers
will be processing companies and exporting companies.

Criteria of Success:

The export potential of mango pulp is very high. Domestic demand for mango pulp remains
for through out the year. About 6000-7000 tonnes are the mango pulp demand in the
processing industry which gives a wider scope for catering B2B segment. The present project
is to be established in A.P. which is the home for first flush of mango in the country, and has
significant proportion in total mango availability. Hence procurement will not be a problem.

Consequences of Failure:

A failure in this project can lead to huge financial losses. A proactive approach standing
against the any type of situation is required. Since it’s a very lucrative market, in this market
could attract others to follow while taking advantage of our failure and may possibly
annihilate us for longer period.

Assumptions:
Few assumptions have been kept in mind.
• Since it’s a capital intensive project so not easy to emulate.
• Special knowledge of mango procurement and strategic planning is required.
• Hyderabad is one of the potential area for mango plantation so closer vicinity gives
advantage.
• Plant is based in MANAGE itself, so extension facilities are available as per need.
 • Many horticulture farmers and traders do come for training in MANAGE, so closer
contacts can be made easily. In near vicinity major agricultural institutes like
ANGRAU, NIRD and NAARM are present which gives strategic advantage to us.

• Since promoters come from agri-background and have management acumen is same
area, so it is advantageous for understanding the rigmarole of the project.

Constraints:

Some of the factors are

• Huge capital requirement
• Not established market but a growing one.
• Lack of market research.
• Agri commodities are always dicey investment.

Steps taken
• Fund raising from bank. Application has been filed.
• Constantly watching the market, and taking initiatives to grow the market.
• In future would like to conduct market research on our own.

Risk Analysis:

• Primitive crop management facilities, erratic yields, diverse practices for assessing
fruit maturity and high incidence of pests are the problems for the processors. Since
it’s a production related problem so we would join with farmers who are specialized
in mango farming. And for further support extension services could be an alternative.
This risk is very pertinent but can be dealt with preplanning and monitoring.
• There is also no sufficient process control and it leads to variations in product quality.
For this we have detailed out a strict quality manual which will guide in taking
decisions wisely. The risk is not that much high.
• Alternate bearing of mango is causing supply and price fluctuations. The profits in the
'on' year have to be split in order to take care of the 'off' year. For this we have set
down procurement plan in advance. The risk is too high but can be managed with
proper planning.
• Water and power are essential inputs in canning industry. Each canning unit has to set
up its own generator and water lifting system adding to the cost of manufacturing. For
this we have plans to tackle problem.
• In a NABARD study in 2001, it was found that profit margins were 16% in canning
units and the ratio of net profit to sales is low. It highlights the fact that the activities
offer only nominal profits and revenues will be under strain if demand for the mango
products is not sustained. It’s an uncontrollable factor, but we have laid out plans to
tackle the problem. Risk is high.
• A limited domestic market is a serious constraint facing the processed mango
industry. Estimates of supply-demand position for major processed foods both in the
country and overseas are also not available and the industry is in information vacuum.
Since market is growing, so it does not seem to pose a potential threat. And in future
demand seems to grow on the basis of opinions of experienced players of the market.
 • The other problem pertains to extension services, cold storages and quality control
laboratories. We have strategic place to utilize the potential of mango production
hence this threat is not much worrying.
• Product recall is very high while exporting due to varying quality specifications in
importing countries; this has been a very potential threat. For tackling this we have
laid out quality manual and a well qualified quality assurance team.
• There are risks also due to govt. regulations, which will be dealt as per the situation.
•
Risk Probability of Effect of impact Risk Mitigation
Impact
Primitive crop low Loss of crops, Economic Farmers who are
management losses specialized in mango
facilities, erratic farming. And for
yields, diverse further support of
practices for extension services
assessing fruit
maturity and
high incidence
of pests are
no sufficient low variations in product strict quality manual,
process control quality quality assurance team
Alternate High supply and price procurement plan,
bearing of fluctuations profits in the 'on' year
mango have to be split in
order to take care of
the 'off' year
Water and low Processing , cost of own generator and
power manufacturing high water lifting system
Estimates of medium Overstocking/under- Proper planning
supply-demand stocking
not available
Product recall High Loss of value, economic quality manual and a
due to varying losses well qualified quality
quality assurance team
specifications
govt. low Loss of value, economic As per situation
regulations losses

Contingency plans:

• We have laid out our plans and have got it confirmed from our sources. For any
procurement problem we have sourcing model which identifies strategic supplier from
 the market. We would source mangoes from Hyderabad, Vijaywada and Chittoor
areas. And in event of unprecedented happenings from Maharashtra and U.P.
• A mango pulping plant can be also utilized for papaya, guava and tomato processing
also. In case of short supply/crop failure on mango these crops are good alternative.
• Besides that there are many by products of mango like mango powder, which is easily
manufactured can bring additional income. Also mango stone and peel can be used in
preparing organic manures, which can be reutilise in mango orchard hence it would be
a feasible idea to give it to mango growers and would help in maintaining good
relationship.

Project Documentation:

Identify the documents relating to your project and where they are kept. Typical documents
would include:

Project Charter
Project Plan – Gantt chart
Method Statement- is ready
Risk Analysis- is ready
Contingency Plans- is ready
Budget- is ready
Meeting Minutes- is ready
Quality Plan- is ready
Specification- is ready
Project Contact Directory - is ready

Key Dates in the Project:

Project formulation- 17th Mar 2009
Expected date of completion- 31st sep 2009

Project Control:

Plant monitoring –thrice a week

Meeting frequencies- weekly appraisal of activities
There will be no. of assistants to coordinate the work in each deptt. and they will be reporting
to the respective department heads. Regular updates will be done, with the help of
documentation. Each document will have computer generated copies as well. Structure of the
organization is as
• Project manager
• Procurement manager
• Procurement officer
• Plant manager
• Plant engineer
• Accounts head
• Accounts asst.
• Quality assurance mgr.
 • Quality assurance officer

Key Project Personnel

Various activities and respective overseers are:

Project manager- Parag Rastogi (1)
Procurement manager- Arindam Mukherjee, Anil Kumar (4)
Plant manager- Kumar Anshumant, Devashish Kumar (6)
Accounts head- Mayank Rastogi (3)
Quality assurance- Anjali Rawat, Puja Chaurasia (3)
• Nos. in brackets indicate assistants’ to the respective people.