Scheme for marketing of fruit juice & fruit based

beverages by setting up Refrigerated Juice Vending Machine

The Juice Dispensing Activity is in operation for the last more than 16 years. Initially it was started by the PAIC. The scheme was approved by the Board of Directors in its meeting held on 30.8.1990. The Activity was later on transferred to PAGREXCO for its better functioning after the approval of the Board of Directors. The brief history of the Scheme/ Activity is as under:

Background

Promotion of Horticulture and Agro-based industries in the State of Punjab has always been one of the major objectives of Punjab Agri Export Corporation. For promotion of horticultural crops, the market for processed horticultural produce needs to be extended.

Setting up refrigerated juice vending machines in public places is one potential activity for popularizing processed horticultural Produce amongst general public giving the much-needed impetus to the promotion of horticulture in the state. The public places with large floating population need to have adequate sources of thirst quenching liquids especially in the summer months. Currently people drink water, cold drinks etc. to quench their thirst. But generally there is always a dearth of clean cold water at these places. If refrigerated natural fruit based beverage can be made available to general public at these places at prices that compare favourably with that of cold drink, then demand for fruit based beverage can be increased substantially.

Introduction

Initially, it is proposed to commence with installation of twin jar juice vending machines with a total capacity of 40 liters, which can dispense any two juices of the following flavours depending upon the demand at the site:

1.Mango concentrate

2.Orange concentrate

3.Guava concentrate

4.Pineapple concentrate

5.Litchi concentrate

6.Apple juice

Details of the Scheme

PAGREXCO has drawn up a scheme to popularize natural fruit Juice amongst the general public under which refrigerated fruit juice vending machines are proposed to be set up at various convenient locations with large floating populations.

Area of Operation

The area of operation for this scheme is throughout the Republic of India.

Implementing Agency

This scheme is to implemented through PAGREXCO.

Objectives of the Scheme

1.Promotion of horticultural crops through creation of market for processed horticultural produce.

2.Creation of employment opportunities to the unemployed youths, ex-servicemen as well as backward/ scheduled castes.

3.To provide nutritious fruit based beverage to general public at affordable prices throughout the year.

Operational strategy to be adopted

In order to inter-link various aspects, PAGREXCO and vendor/distributor will be in the following spheres.

Role of PAGREXCO

1.PAGREXCO are finalizing suitable sites to install the Juice Vending Machines and get these allotted in its own name.

2.PAGREXCO provides the design of the kiosk to house the juice vending machines.

3.PAGREXCO procures and install juice vending machines.

4.PAGREXCO select and appoint vendors to run the vending machines.

5.PAGREXCO makes arrangements for regular supply of fruit juice concentrates to the vendor/distributors.

6.PAGREXCO carry out random tests to ensure the quality of the fruit juice is dispensed through these machines.

7.Retail prices of juice per glass dispensed through these kiosks has be fixed by PAGREXCO i.e. Rs.6/- per glass of 200 ml.

8.Vendor is an individual who operates one kiosk.

Role of Vendors

1.The vendor provides cash security of Rs.25,000/- or 30,000/- (Rs.25,000 for old machine and Rs.30,000/- for new machine) or provide bank guarantee of the like amount for vending machines and efficient running of the dispensers. The security is refundable along with interest earned from the Bank in case of closer of unit.

2.The vendor has to pay to PAGREXCO every month as rental charges of the fruit juice vending machines as under:

  1. In Chandigarh and Punjab @ Rs.350/- per month in respect of the old machine.
  2. In Chandigarh/Punjab Rs.400/-per month in respect of the New machine.
  3. In other states Rs.500/- per month per machine in respect of Old as well as New Machines.

3.The Vendor has to employ adequate staff at his own cost for efficient running of the unit.

4.All operating expenses including rent of the site electricity and water charges etc. are borne by the vendor.

5.The vendor has to ensure that the quality of Juice Dispensing through these vending machines is in accordance with FPO regulations and other conditions stipulated by PAGREXCO.

6.The vendor has to look after all aspects relating to day to day running of machines and ensure that these are efficiently run at all times.

7.All maintenance costs of vending machines, kiosk and other items will be borne by the vendor.

8.The vendor has to pay to the PAGREXCO the Administrative Charges on the sale of fruit juice concentrates and tomato soup concentrates as indicated below:

  1. Chandigarh/Punjab Rs.5/- per kg

(within the State)

b.Other states Rs.7/-per kg

(Out of the State)

9.The vendors get the kiosk constructed at his own cost according to the specifications given by PAGREXCO.

10.Distributor can be an individual/firm who operates a minimum of 5 to 10 kiosks in places other than Punjab or Chandigarh.

PUNJAB AGRI EXPORT CORPORATION LIMITED

CHANDIGARH

APPLICATION FORM FOR APPOINTMENT OF VENDOR

Application Fee Rs. 100/- deposited cash vide C. R. No. ______Dated ______
  1. (a) Name ______

(b) S/o Sh.______

(c) Address ______

______

(d) Contact No.______

  1. Present occupation ______
  1. Whether the applicant is an

Ex-Serviceman/Roit Victim/

Educated unemployed/SC/BC/ ______

General category (Support with relevant

Documents if applicable)

  1. Whether the applicant has any previous

Business experience. ______

  1. Brief history of previous business experience. ______
  1. The applicant is willing to make an investment

as detailed below and agreed to complete the

required formalities as at back page.

  1. Bank Guarantee for Rs. 25,000/- to Rs.35,000/-
  2. Construction of Kiosk Rs. 20,000/- ______
  3. Working capital Rs. 10,000/-
  4. Annual Insurance premium is to be paid

to Insurance Company

7.Source of funds to finance. ______

8.Preference of city / location for setting up

of PAGREXCO Juice Bar ______

9.Whether having own site ______

If yes give location ______

If not – indicate the address ______

of site allotment authority. ______

10.Detail of PAGREXCO Juice Bars if any already

in operation. ______

______

(Signature of applicant) Date:

NOTE:SEE FORMALITIES AT BACK PAGE.

FORMALITIES FOR SETTING UP OF

PAGREXCO JUICE DISPENSING UNIT

  1. To deposit application fee Rs. 100/- Cash.

2.Two recent passport size photographs are to be attached with application form.

  1. Identification/Attested copy of Ration Card or Voter Card.
  1. To get site allotment letter (if own site is not available).
  1. After allotment of site-

To bring two Non-judicial papers in the name of vendor for agreement and undertaking.

  1. To bring Non-Judicial Paper for Licence Deed in the name of Punjab Agri Export Corporation Ltd., 2-A, Sector 28-A, Madhya Marg, Chandigarh.

(If own site is not available).

  1. To deposit security of Juice Dispensing Machine worth Rs. 30,000/- by D.D. payable to PUNJAB AGRI EXPORT CORPORATION LTD. at CHANDIGARH.
  1. To sign the complete documents by the vendor.
  1. To deposit advance lease money for two months.
  1. After completing the above formalities, Juice Dispensing Machine is to be issued.