Business Plan- EnTP

8/6/2019 Business Plan- EnTP

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Kriti Makkar/

Madhu Agarwal/

Piyush Agarwal/

Satyam Kinno/

Shalabh Chauhan/

[Type the

document

title]

July 11

2011[Type the abstract of the document here. The abstract is typically a

short summary of the contents of the document. Type the abstract of

the document here. The abstract is typically a short summary of the

contents of the document.]


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CONTENTS

1. Project At A Glance..............................................................................................

2. Introduction............................................................................................................

3. Raw Material............................ ..............................................................................

4. Market Analysis.....................................................................................................

5. Process Of Flow Chart...........................................................................................

6. Technical Aspects & Manufacturing Process.......................................................

7. Detail Of Utilities................................................ ..................................................

8. Marketing..............................................................................................................

9. Estimates OfProduction & Sales...................................................... ....................

10.Financial Plan & Projection...................................................................................


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PROJECT AT A GLANCE

Proposed Industrial site : At Masuri Gulawat Road

Area ofPlot Applied for : 600 SQ.MTRS

Proposed Covered Area :

Ground Floor(Sq.Fts) : 3500

First floor (Sq.Fts) : 3500

Typeof Industry : FOOD PROCESSING INDUSTRY

MANUFACTURING OF JAM, JELLIES ETC.

OBJECTIVES

Long Term (VISION):

y To be a billion dollarglobal manufacturer.

Short Term (MISSION):

y To providethedistributors andcontractors with unsurpassed quality, customerservice

and satisfaction with effective transparent communication and nurturing and

promulgation ofvalues andcreativity.


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INTRODUCTION

Jams andjellies are spreadtypically made from fruit, sugarand pectin. Jelly is made with the

juiceofthe fruit:jamuses themeatofthe fruit as well .Some Vegetablejellies are also

produced.

Preserving foods was a home basedoperation unitin the nineteenth century. Even today

millions of peoplemake fruit preserves in theirown kitchens. Whetherin the homekitchen or

in a modern foodProcessing plants, the procedureis essentially the same. Fruits arechopped

andcooked with sugarand pectin until a gel is formed. Thejamorjelly is then packedinto

sterilizedjars.


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5

RAW MATERIALS

Jams andjellies aremade from a variety of fruits, eithersingly orin combination. Mostofthe

fruits are harvestedin the fall. Mostjam andjelly producers develop closerelationship withtheirgrowers in ordertoensure quality. The production plants areelapsed between harvest

and preparation in between 12-24 hours.

Sugarorhigh fructosecorn syrup, orcombinations ofthetwo are addedtothe fruitto

sweeten it. Cane sugarchips aretheideal typeof sugarused forpreserving food. Sugaris

purchased from an outside supplier.

Theelementthat allows fruitto gel is Pectin. Itis presentin varying degrees in all fruit.Apples, blackberries, cherries, citrus fruits, grapes, quinces andcranberries havethe best

natural gelling properties.

Critic acidis addedtoobtain thecorrect balance neededto producethejamorjelly. Lime and

lemonjuicerate high in citric acid, thereforethey arethemost prevalent sourceused. Citric

acidcan also beobtained by the fermentation of sugars. Itis purchased fromoutside

suppliers.

Others flavorings, such as Vanilla, cinnamon, mint, alcoholic, beverages such as rumor

Kirsch, can be addedtothejamorjelly. These flavorings are purchased fromoutside

suppliers.


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MARKET ANALYSIS

OVER

ALL MARK

ET

Domesticdemand forfresh fruits in india has been on theincreasein the line with risingincomes, population growth andincreased health consciousness among consumers. Fruitconsumption in india is anticipatedtoincrease by about 4 percent peryearaccording to

projected growth rates forincomes,population,andtrends in food preferences. In addition,growth in demand forindian fresh and processedtropical fruits has been strong in recentyears andthis trendis likely tocontinuein themediumterm.

It holds considerable potential fordomestic producers and suppliers oftropical fruits in India,andin thecaseof Indian market, fortheoverseas suppliers that are abletocompeteeffectively with domestic suppliers . Growth in the fruit production and processing sub-

sectors provides employmentopportunities andincome generation, andcontributes positivelytothe food security.

However, to fully realizethis potential requires changes in thevaluechain, particularly tocompletein the quality sensitiveinternational markets. Developmentofefficient post-harvesthandling infrastructure, transportation facilities andthe quality ofthe producemust be

priorities, especially forthe fruits that are grown forthe lucrativeexportmarket.

Favourable growing conditions permitthe production and supply of a largevariety oftropicalfruits throughtout years.These areconsumed notonly in theregions wherethey are grown butthroughtoutindia.Terminal markets in majorindian cities receive large quantities oftropicalfruits,which arethen soldthrough retail dealers in theothercities an towns.Statistics on

consumption oftropical fruits are not available,soestimates needto bederived basedon otherinfrmation availableon production andtrade.

Total apparentconsumption of fruits in india was estimated at 39 million tonnes in 2002(thelatest yearforwhich consumption data is available),about 8 million tonnes largerthan in1995,with consumption of fresh tropical fruits estimated at 16.3 million tonnes.Annual percapita consumption of fruit was evaluated at 37 kg in 2002,a 12 percentincreaseover1995,with majortropical fruits at 13.3kg(bananas at 7.7kg),temperate fruits at 4.2 kg andotherfruits at 5.9kg.According tothe national sample survey organisation,64 percentofruralhouse holds reported fresh fruitconsumption in 1999 comparedto 84 percentof householdsin urban areas.


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Production of selected fruits in India :

Average (2005/2007) 2008 2009 2010

Bananas 9718 16820 16820 16820Mangoes 10108 10640 10680 10800

Oranges 1743 3120 3070 3070

Apples 1205 1160 1470 1470

Lemons and Limes 863 1440 1420 1420

Pineapples 956 1180 1310 1300

Grapes 684 1210 1150 1200

Papayas 470 700 700 700

Pears 127 200 200 200

Peaches and Nectarines 83 150 150 150

Grapefruit andPomelos 83 140 142 142Plums 55 80 80 80

Figs 6 11 11 11

Apricots 7 10 10 10

Cherries 4 8 8 8

Although India is oneofthe world's largest fruit producers, currentexportvolumes remainsmall. Mostofthe fruit producedin consumeddomestically. Exportvolumes represent less

that 1 percentoftotal domesticouput,as well as less than 1 percentof worldexports.Morethan 0 percentof fruitexportexports fromindia aretropical fruits,includinmangoes,guava,pineapples and papayas.India was the second largestexporterofmangoes inthe worldin 2004,aftermexico,shipping 180000 tonnes or21 percentofthe worldtotal.Exports of papaya and pineapple amountedto 3550 tones and 1624 tonnes,respectively.India alsoimports a sizable quantity of fresh fruits,butthese aremainly temperate fruits suchas apples and pears,and a largevolumeofdried fruits such as dates andraisin.Total importsof both fresh anddried fruits reached 216400 tonnes in 2003(the latest yearforwhich acomplete setofdata on thevalueoftradeexists),and werevalued at US$47.1

Foreign exchangeearning from fresh and processed fruits (including dried andcanned fruit aswell as pulps andjuices)amountedto US$140 million in 2003,an almosttwofoldincrease(185

percent)overthe 1996-1998 average.Mangois themain fruitexported fromindia.Exportearnings from fresh mangoes totalled US$80 million in 2003,which was 61 percentofindias'stotal fruitexports.About 50 percentof pocessed fruitexports weremango-based

products,such as mango plp forjuicemixes,andcondiments including pickles andchutneys.However,on a comparative basis globally,only 2 percentofthe fruit production inindia is processedcomparedto 70 percentin BRAZIL,and 83 percentin MALAYSIA.Itis


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estimatedthat about 25to 30 percentof fruit production is wasteddueto a lackof post-harvestinfrastructure.

SPECIFIC MARKET

The quint-essential parameter, thatthemarket are highly price sensitive andcompetitionorientedcompels us toconcentrateon domesticmarket forfew years beforemoving on tointernational market. The productis a mass product, henceforth doesnt have any targetaudience as such.

COMPETITIVE FACTOR

Becauseitis a relatively simple process, the production ofjams andjellies is notexpectedto

changedramatically. Whatis apparentis that new flavors will beintroduced. Certain

vegetablejellies such as pepperandtomato have been marketed successfully. Other, more

exotictypes including garlicjelly are also appearing on grocery

MICRO-ENVIRONMENTAL INFLUENCE

FACTORS AFFECTING RISE IN DEMAND OF JAM and

JELLY IN INDIA

y Increasein population

y Income and prices

y Consumption habits and preferences:-

y Now with therapidchanges in lifestylein India, cannedjuices and beverages are

preferred by working people.


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PROCESS FLOW CHART

QUALITY INSPECTION OF FRUITS

CLEANING, CRUSHING AND CHOPPING

PASTEURIZING THE FRUIT

COOKING THE JAM AND JELLY

FILLING THE JARS

LABELING AND PACKING


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TECHNICAL ASPECTS & MANUFACTURING PROCESS

Theingredients must be addedin carefully measured amount. According tous, they should

becombinedin a properratio. Theingredients arePectin, Sugarand an Acidconcentration.

Theingredients as mentionedearliershall be addedin a good proportionate as toomuch of

pectin will makethe spreadtoo hard andtoomuch sugarwill makeittoo sticky.

INSPECTION

When the fruit arrives atthe plant, itis inspected forquality, using color, ripeness andtaste as

guides. Fruitthat passes inspection is loadedinto a funnel-shaped hopperthatcarries the fruit

into pipes forcleaning andcrushing.

CLEANING, CRUSHING AND CHOPPING

As the fruittravels through the pipes, a gentle waterspray clears away surfacedirt. Some

fruits likecitrus and apples may bemanually peeled, cored, sliced anddiced. Cherries may be

soaked andthen pitted before being crushed.

PASTEURIZING THE FRUIT

The fruit and/orjuicecontinuethrough anothersetof pipes tocooking vats. Here, itis heated

tojust below the boiling point andthen immediately chilledtojust below freezing. This

process pasteurization, prevents spoilage. In caseofjelly, the pulp is forcedthrough another

setof small openings that holds backseeds and skin and needs to be passedthrough a filter.

The fruitorjuiceis transferredtorefrigeratedtanks andthen pumpedtocooking kettles as

needed.

COOKING THE JAM AND JELLY

Pre-measured amounts of fruit and/orjuice, sugarand pectin are blendedin industrial

cooking kettles. If additional flavorings areto beincluded, they are added atthe sametime.

When themixturereaches the pre-determinedthickness and sweetness, itis pumpedto filling

machines.


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FILLING THE JARS

Presterlizedjars move among a conveyerbelt as spouts positioned above pourpressured

amounts ofjamorjelly intothem. Metal caps arethen vacuumed sealedon top. The process

of filling thejars andvacuum packing them forces all ofthe airoutofthejars furtherinsuring

the sterility ofthe product.

LABELING AND PACKAGING

The sealedjars areconveyedto a machinethat affixes preprinted labels. According to law,

these labels must listtruthful and specificinformation aboutthecontents. Thejars arethan

packedintocartons forshipment. Depending on the sizeofthe producers operation, labeling

and packaging is eitherachievedmechanically ormanually.


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DETAIL OF UTILITIES

Detail ofutilities such likeelectricity and waterplays a vital rolein setting up a plant and

therefore needs a properestimation ofcost. Likewisetheestimatedcostofelectricity and

wateras perthe prevailing rates perunitmultiplied with no. of hours theelectricity used will

be somewhere about 5 lacs.

DETAIL OF RAW MATERIAL REQUIREMENTS

S.NO. PARTICULARS

AMOUNT PER

MONTH

1 FRUIT

2 SUGAR

3 PECTIN ACIDC

4 COLOUR,ESSENCES

5 PRESERVATIVES

6 JAM SIZE CANS 577,500,00

7 JAR CANS

8 JAR CAPS

9

LABELS AND

STICKERS

10

PACKING

MATERIALS

TOTAL 577,500,00

ANNUALREQUIREMENT 6,930,000


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MARKET

RAPH SHOWING SALES AND PROFITS

(In L

FOR 1ST

YEAR:

FOR 2ND YEAR:

SALES AND PROFITS

0

20

40

60

80

100

120

140

YEARS

AM

SALES

PROFIT BEFORE TAX

NET PROFIT

SALES AND PROFITS

0

20

40

60

80

100

120

140

160

YEARS

AMT

SALES

PROFIT BEFORETAX

NET PROFIT


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FOR 3RD

YEAR:

FOR 4TH

YEAR:

SALES AND PROFITS

0

20

40

60

80

100

120

140

160

180

YEARS

AMT

SALES

PROFIT BEFORE TAX

NET PROFIT

SALES AND PROFITS

0

20

40

60

80

100

120

140160

180

200

YEARS

AMT

SALES

PROFIT BEFORE TAX

NET PROFIT


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ESTIMATES OF PRODUCTION & SALES

S.NO. PARTICULARS

1ST

YEAR

2ND

YEAR

3RD

YEAR

4TH

YEAR

T

D C

CTY(

n dozen)

C

D J

M

consisting of 5

grams

J

F J

M, J

D M

M

D

3

3

3

3

.

F W

K

G D

Y

3

3

3

3

3

.

F

H

FT

T

M

T

D C

C

TY UT

T

% 7

%

% 9

%

5

T

M

T

D

U

DUCT

C

D J

M

consisting of 5

grams

9

J

F J

M, J

& M

M

D

7

(

n lacs)

s.

C

D J

M

consisting of 5

grams 5

3 7

J

F J

M, J

& M

M

D

7

9

TOTAL IN Rs. 126 147 168 189

7

V

G

G

C

375

D

Z

C

D J

consisting of 5

grams

D Z

J

F J

M, J

& M

M

D


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FINANCIAL PLAN AND PROJECTION

RESOURCES:

CAPITAL COST OF THE PROJECT:

(In lacs)

Land: 8.50

Building 31.20

Machinery 16.40

OtherFixed Assets 3.40

Security Deposits .50

Preliminary & Preoperative 1.49

------------

Total 61.49

------------

MEANS OF FINANCING:

Promotersc tal 140 lacs

Term Loan req re 60 lacs

Total 200 lacs

Employment Potential (nos.) : 80


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DETALIS OF PROPOSED MACHINERY

Particulars qty amount per pcs amount

Refrigrators 5 3

5

fruit washing tank 35

5

mini boilers

to 5

kg 3

5

375

bottle washing machine 3

all utensils of different sizes

&mugs 35

5

Wooden barrels for storage of

pulps 3

laboratory equipment

5

5

kettle 3

T

T!

"

97


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COST OF LAND

PARTICULARS APPLICANT

PLOT

AREA

APPLIED

FOR RATE AMOUNT

Masuri Gulawati Road # rfeen # hmed$

% %

& '5

%75

% % % %

Distt. Ghaziabad(

andita Mathur

(U.)

.))

rakharTomar

Harinder0

olanki

(

ikhil Tiku

)arvesh Dahiya

TOTAL 750000

#dd: Conveyance Charges @

1%

$

% % % %

# dd: Registration Charges & % % % %

TOTAL 820000


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COST OF BUILDING

PARTICULARS AMOUNT

ground floor

W2 RK 3 4 G H5 6 6 7 8 8 8 8 8

3 4

9

@ A

CT3 2 4

&@ 5

CK3 4

G D3

V3

9

3 2 4

B

58 8 8 8

GU5 RDROOM, @ 5 RK 3 4 G,GA 4 A RATOR

ROOMA

TCB 8 8 8 8 8

FIRST FLOOR

OFF 3 CA 5 8 8 8 8 8

9

TORES C 5 8 8 8 8

BOUNDARY WALLS C 5 8 8 8

TOTAL B 7 C 58 8 8


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DETAIL OF MISC ASSETS

PARTICULARS AMOUNT

AIR

CONDITIONERS,FURNITURE,&FIXTURES DE E E E E

GENERATOR F 75E E E

FIREEXTINGUISHERS F 5E E E

TOTAL (RS) 39E E E E


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COST OF PROJECT AND MEANS OF FINANCING

S.No.

ESTIMATED COST OF

PROJECT In Lacs

Expenses

GCost of

Hand

I P

Q Q Q Q

P

R

uildingG

S P

5Q Q Q

3 Machinery 97G Q Q Q

S

Misc otherA

ssets 39Q Q Q Q

5 Security deposits 5 Q Q Q Q

T

U

reliminary & preoperativeG

S

9Q Q Q

TOTAL 3I

5Q Q Q Q

A. Capital cost ofU

roject 3I

5Q Q Q Q

R

. Working CapitalP

Q Q Q Q Q Q

TOTAL PROJECT COST 5I

5 Q Q Q Q

MEANS OFFINANCING

G

U

romoters contribution

For Capital CostP

G Q Q Q Q Q

For Working CapitalP

Q Q Q Q Q

Through Internal AccriualsP

5Q Q Q Q

P

TermH

oan FromR

ankP I

Q Q Q Q Q

3 Working CapitalH

oan 5Q Q Q Q Q

TOTAL 5I

5Q Q Q Q


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IMPLEMENTATION SCHEDULE

The propose

project shall be implemente

in the following time period.

STAGES TIME PERIOD

Paymentof 25% of Costof Land Needtodeposit with Application form.

Provisional SSI registration & Pollution Board NOC Within 2 months from Allotment letter.

Physical possession of Land & Execution of Legal

Documents

Within 2 months fromdateof Allotment.

Approval & Sanctioning of Building Plans Within 1 to 2 months from AllotmentofPlot.

Term loans Sanctioning & Disbursement from

Financial Institutions forProject

Within 1 to 1-1/2 month.

Commencementof Factory Building

Aftertaking Physical Possession

Immediately afterapproval of building plans.

Maximumtime Within 4 to 5 months from

taking overPhysical Possession.

Completion of Factory Building Within 9 to 10 months fromtaking overPhysical

possession.

Placementoforders ofPlant & Machinery 2 months before Completion of Factory Building.

Erecting & Installation of Machinery 10thto 11thmonth fromtaking overPhysical

Possession.

Placementof Technical Manpower& Executives Within 1 month fromcompletion of Factory

Building and before Erection of Machinery.

Commencement Commercial Production Within 11thmonth fromtaking overPhysical

Possession.

NOTE: Implementation ofthis project will be within 1 yearfromthedateof allotment.


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ORGANIZATION AND MANAGEMENT

FORM OF BUSINESS:

The formofourbusiness is partnership. We are six partners :-

y Kriti Makkar

y Madhu Agarwal

y Piyush Agarwal

y Satyamkinno

y Shalabh Chauhan

with equal sharein profits and losses.

EQUITY POSITION

Thetotal investmentin ourbusiness is Rs.61.49lacsoutof which Rs.30lacsis invested by

each memberin equal shareorin profit sharing ratio like 1:1:1:1:1:1 orwecan say that by

investing equal amountofrupees likeRs.5lacs by all partners. Theotherpartof amountof

Rs.31.49lacs will betaken by bankas a loan amount. Thetotal amountofourbusiness is

including all cost likecostof land, building, machinery, fixed asset, security deposits etc.

KEY PERSONNEL

Thekey personnel orman powerrequirementofourbusiness is dividedin 2 parts like forfactory and administration. Theoverall summary ofmanpowerrequirementis 40 andthecost

is Rs.2497200. in factory thetotal requirementon person is 30 which include:

y Factory managers

y Foodchemists

y Supervisors

y Mechaniccum boilers operators

y Skilled workers

y Semiskilled workers

y Unskilled workers

y Watchman

In administration thetotal requirementof person is 10.

y Accounts and stores staff

y Purchaseexecutive

y Sales executives

y Subordinates staff


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DETAILS OF MANPOWERREQUIREMENT

PARTICULARS NO. SALARY AMOUNT ANNUAL

(P.M.) (P.M.)

FACTORY

Factory managers

5

5

5

Food chemists

Supervisors 75

5

Mechanic cum boilers

operators

75

5

Skilled workers

5

5

Semi skilled

Unskilled

3

73

Watchman

35

35

3

59

9

5

ADMINISTRATION

Accounts and Stores staff

urchase executive

7

Sales executives 3 7

5

Subordinate staff 5 35

75

5

5

SUMMARY

Factory(Wages)59

9

5

Administrative(Salaries)

5

5

Total

97


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H.RPOLICY AND STRATEGY

The H.R policy ofourbusiness is basedon selection andrecruitment. The process of

selection andrecruitmentincludes differentrounds which makethe process easier. Before

recruitmentevery memberoforganization will be well trained by giving propertraining with

mostmodern equipment which makethem nimblein theirwork. Likeotherorganization our

business also starts fromtop level managementto lowerlevel. Leaders andtop managers

createthecultureoftheirbusiness. Itis thereforecritically importanttorecruit andretain the

rightkinds of people atthetop in leading andmanaging yourbusiness to high performance.

Among otherthings, people whodisplay the qualities of good leadership in business are

expectedto be highly ethical andorganized andtomanage againstthedetailedobjectives of

the small business plan, while simultaneously having a grasp ofthe "big picture," strategic

agenda ofthe business. There are some steps which are providing somecareerplanning like:

y Possess a Personal Senseof Mission, Vision and Valuesy Develop a Personal Senseof Responsibility and Accountability

y Sharpen Personal Skills in Sharing Information and Communicating Effectively

y Learn How to Identify Gaps and Manage Them

y Motivation (both monetary e.g. Salary, incentives, bonus etc and non monetary e.g.

Appreciation,job enrichment, etc)

y Well developed schedule forvarious schemes like VRS, CRS etc

y Transparent & effectivecommunication between thetop level managers andthe

workers.

y Implementation ofdecentralization anddelegation of authority.

In ourbusiness theotherimportantkey forourorganization are workers working in our

factory like skilled, semi skilled andunskilled workers etc who will betrainedin theirwork

with latestmachinery andtechnology. Thetraining will berenewed afterevery 6 months or

wheneverrequired. They will also bemotivated by giving properappraisals in the formof

bonus, gifts, schemes etc.

The policy of our business is to employ right person at right job.


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ASSUMPTIONS AND NOTES

We have assumedthe following assumptions forfinancial working.

They are as follows:

y Sales are assumedto be 60%, 70% and 80% ofits installedcapacity in the first,second andthird yearrespectively.

y 10% increasein salaries and wages is providedin the subsequent years.

y Othermanufacturing expenses are 5% of Raw Material Consumption.


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PROPOSED LAYOUT PLAN OF THE FACTORY

PURPOSE OF OPEN AREA

FOR LOADING, UNLOADING, INTERNAL ROADS, PARKING, VENTILATION &

PLANTATION etc.

DRINKINGTOILETS

GENERATOR

ROOM

FINISHED

GOODS

GODOWNPRODUCTION HALL

RAW MATERIAL

STORE

ADMINISTRATION BLOCK

LABORATORY

SECURITY

ROOM

TIME OFFICE

OPEN AREA

PARKING

6-1 2METRES

5 MTRS

4-1/2

MTRS

5 MTRS


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