There is no doubt that India leads the way in producing tomato products. If the food processing industries are looking to establish a tomato processing plant, they’re making the appropriate decision. Entrepreneurs have a significant opportunity to invest in this sector, as there is a growing demand for products such as sauces, ketchups, and purees. However, before commencing, it is essential to gain a deep insight into the costs involved in setting up a plant with the latest technologies.
What are the Costs Involved in Setting up the Plant?
Land and Construction
The primary costs involved are for land acquisition and plant construction. Depending on the desired size, the plant may be smaller or larger in scale. Generally, a medium-sized plant requires 1 to 2 acres of land. From region to region, the cost of land varies in India. The price ranges from ₹10 lakhs to ₹50 lakhs within semi-urban or rural areas. Additionally, there are the costs associated with constructing the building where the plant is located, as well as the costs of storage areas and utility rooms. Depending on the design and materials, the cost can range between ₹30 lakhs and ₹70 lakhs.
Plant Equipment
A substantial amount of money is involved when purchasing equipment for a tomato processing plant. This equipment includes washing and sorting units, pulping and crushing machines, evaporators or steam-jacketed kettles, pasteurisation and sterilisation systems and labelling and packaging machines. The cost of equipment ranges from ₹50 lakh to ₹2 crore, especially for small to medium-sized facilities. For long-term performance and reduced maintenance costs, it’s better to invest in energy-efficient and reliable machines from reputed manufacturers.
Setup and Utilities
It is essential to establish utilities, including power connections, water supply, steam systems and drainage. For washing and cleaning, tomato processing requires efficient water usage. Depending on the infrastructure and location, the stage will cost anywhere between ₹10 lakh and ₹30 lakh. At this point, installing internal fittings and equipment is another key expense.
Licenses and Regulatory Compliance
The food processing plants in India adhere to the guidelines made by the Food Safety and Standards Authority of India. Additional costs, such as licences, quality certifications, registration fees, and initial inspections, add an extra ₹2 lakh to ₹5 lakh. For smoother operations and market acceptance of products, it is necessary to ensure full compliance.
Training and Workforce
In a tomato processing plant, it is crucial to deploy trained staff to operate the machinery, manage quality control and handle logistics effectively. In India, labour costs are relatively low. However, the cost of training and initial recruitment varies between ₹5 lakh and ₹10 lakh. Ongoing salaries come under the operational costs.
To get in touch with the leading manufacturer of tomato processing plant equipment, contact GEM Foodtech. With advanced machinery and modern technologies, we are responsible for creating high-standard tomato processing accessories. Our team relies on the functional aspects while manufacturing tomato processing machinery. The machines can process tomato paste, ketchup and concentrate. Our accessories require minimal maintenance and offer maximum functionality. Partner with us today.