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Kriti Makkar/

Madhu Agarwal/

Piyush Agarwal/

Satyam Kinno/

Shalabh Chauhan/

BUSINESS PLAN OFENTERPRENEURSHIP

July 11

2011

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CONTENTS

1. Project At A Glance.............................................................................................. 2

2. Introduction........................................................................................................... 4

3. Raw Material......................................................................................................... 5

4. Market Analysis.................................................................................................... 6

5. Process Of Flow Chart.......................................................................................... 9

6. Technical Aspects & Manufacturing Process....................................................... 10

7. Detail Of Utilities.................................................................................................. 12

8. Marketing.............................................................................................................. 139. Estimates Of Production & Sales.......................................................................... 15

10.Financial Plan & Projection.................................................................................. 16

11.Projected Profitability Statement.......................................................................... 22

12.Implementation & Schedule..................................................................................23

13.Oraganization & Management.............................................................................. 24

14.Details Of ManPower Requirement......................................................................25

15.H.R Policy & Strategy........................................................................................... 26

16.Proposed Layout.................................................................................................... 28

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PROJECT AT A GLANCE

Proposed Industrial site : At Masuri Gulawat Road

Area of Plot Applied for : 1800 SQ.MTRS

Type of Industry : FOOD PROCESSING INDUSTRY

MANUFACTURING OF JAM, JELLIES ETC.

OBJECTIVES

Long Term (VISION):

To be a billion dollar global manufacturer.

Short Term (MISSION):

To provide the distributors and contractors with unsurpassed quality, customer service

and satisfaction with effective transparent communication and nurturing and

promulgation of values and creativity.

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INTRODUCTION

Jams and jellies are spread typically made from fruit, sugar and pectin. Jelly is made with the

juice of the fruit: jam uses the meat of the fruit as well .Some Vegetable jellies are also

produced.

Preserving foods was a home based operation unit in the nineteenth century. Even today

millions of people make fruit preserves in their own kitchens. Whether in the home kitchen or

in a modern food Processing plants, the procedure is essentially the same. Fruits are chopped

and cooked with sugar and pectin until a gel is formed. The jam or jelly is then packed into

sterilized jars.

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RAW MATERIALS

Jams and jellies are made from a variety of fruits, either singly or in combination. Most of thefruits are harvested in the fall. Most jam and jelly producers develop close relationship with

their growers in order to ensure quality. The production plants are elapsed between harvest

and preparation in between 12-24 hours.

Sugar or high fructose corn syrup, or combinations of the two are added to the fruit to

sweeten it. Cane sugar chips are the ideal type of sugar used for preserving food. Sugar is

purchased from an outside supplier.

The element that allows fruit to gel is Pectin. It is present in varying degrees in all fruit.

Apples, blackberries, cherries, citrus fruits, grapes, quinces and cranberries have the best

natural gelling properties.

Critic acid is added to obtain the correct balance needed to produce the jam or jelly. Lime and

lemon juice rate high in citric acid, therefore they are the most prevalent source used. Citric

acid can also be obtained by the fermentation of sugars. It is purchased from outsidesuppliers.

Others flavorings, such as Vanilla, cinnamon, mint, alcoholic, beverages such as rum or

Kirsch, can be added to the jam or jelly. These flavorings are purchased from outside

suppliers.

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MARKET ANALYSIS

OVERALL MARKET

Domestic demand for fresh fruits in india has been on the increase in the line with risingincomes, population growth and increased health consciousness among consumers. Fruitconsumption in india is anticipated to increase by about 4 percent per year according toprojected growth rates for incomes,population,and trends in food preferences. In addition,growth in demand for indian fresh and processed tropical fruits has been strong in recentyears and this trend is likely to continue in the medium term.

It holds considerable potential for domestic producers and suppliers of tropical fruits in India,

and in the case of Indian market, for the overseas suppliers that are able to competeeffectively with domestic suppliers . Growth in the fruit production and processing sub-sectors provides employment opportunities and income generation, and contributes positivelyto the food security.

However, to fully realize this potential requires changes in the value chain, particularly tocomplete in the quality sensitive international markets. Development of efficient post-harvesthandling infrastructure, transportation facilities and the quality of the produce must bepriorities, especially for the fruits that are grown for the lucrative export market.

Favourable growing conditions permit the production and supply of a large variety of tropical

fruits throughtout years.These are consumed not only in the regions where they are grown butthroughtout india.Terminal markets in major indian cities receive large quantities of tropicalfruits,which are then sold through retail dealers in the other cities an towns.Statistics onconsumption of tropical fruits are not available,so estimates need to be derived based on otherinfrmation available on production and trade.

Total apparent consumption of fruits in india was estimated at 39 million tonnes in 2010(thelatest year for which consumption data is available),about 8 million tonnes larger than in2004,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 percent increase over2005,with major tropical fruits at 13.3kg(bananas at 7.7kg),temperate fruits at 4.2 kg andother fruits at 5.9kg.According to the national sample survey organisation,64 percent of ruralhouse holds reported fresh fruit consumption in 2009 compared to 84 percent of householdsin urban areas.

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Production of selected fruits in India :

Average (2005/2007) 2008 2009 2010

Bananas 9718 16820 16820 16820

Mangoes 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 200Peaches and Nectarines 83 150 150 150

Grapefruit and Pomelos 83 140 142 142

Plums 55 80 80 80

Figs 6 11 11 11

Apricots 7 10 10 10

Cherries 4 8 8 8

Although India is one of the world's largest fruit producers, current export volumes remainsmall. Most of the fruit produced in consumed domestically. Export volumes represent lessthat 1 percent of total domestic ouput,as well as less than 1 percent of world exports.Morethan 0 percent of fruit export exports from india are tropical fruits,includinmangoes,guava,pineapples and papayas.India was the second largest exporter of mangoes inthe world in 2004,after mexico,shipping 180000 tonnes or 21 percent of the worldtotal.Exports of papaya and pineapple amounted to 3550 tones and 1624 tonnes,respectively.India also imports a sizable quantity of fresh fruits,but these are mainly temperate fruits suchas apples and pears,and a large volume of dried fruits such as dates and raisin.Total importsof both fresh and dried fruits reached 216400 tonnes in 2003(the latest year for which a

complete set of data on the value of trade exists),and were valued at US$47.1

Foreign exchange earning from fresh and processed fruits (including dried and canned fruit aswell as pulps and juices)amounted to US$140 million in 2003,an almost twofold increase(185percent)over the 1996-1998 average.Mango is the main fruit exported from india.Exportearnings from fresh mangoes totalled US$80 million in 2003,which was 61 percent of indias'stotal fruit exports.About 50 percent of pocessed fruit exports were mango-basedproducts,such as mango plp for juice mixes,and condiments including pickles andchutneys.However,on a comparative basis globally,only 2 percent of the fruit production in

india is processed compared to 70 percent in BRAZIL,and 83 percent in MALAYSIA.It is

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estimated that about 25to 30 percent of fruit production is wasted due to a lack of post-harvest infrastructure.

SPECIFIC MARKET

The quint-essential parameter, that the market are highly price sensitive and competitionoriented compels us to concentrate on domestic market for few years before moving on tointernational market. The product is a mass product, henceforth doesnt have any targetaudience as such.

COMPETITIVE FACTOR

Because it is a relatively simple process, the production of jams and jellies is not expected tochange dramatically. What is apparent is that new flavors will be introduced. Certain

vegetable jellies such as pepper and tomato have been marketed successfully. Other, more

exotic types including garlic jelly are also appearing on grocery

MICRO-ENVIRONMENTAL INFLUENCE

FACTORS AFFECTING RISE IN DEMAND OF JAM and

JELLY IN INDIA

Increase in population

Income and prices

Consumption habits and preferences:-

Now with the rapid changes in lifestyle in India, canned juices 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

The ingredients must be added in carefully measured amount. According to us, they should

be combined in a proper ratio. The ingredients are Pectin, Sugar and an Acid concentration.

The ingredients as mentioned earlier shall be added in a good proportionate as too much of

pectin will make the spread too hard and too much sugar will make it too sticky.

INSPECTION

When the fruit arrives at the plant, it is inspected for quality, using color, ripeness and taste as

guides. Fruit that passes inspection is loaded into a funnel-shaped hopper that carries the fruit

into pipes for cleaning and crushing.

CLEANING, CRUSHING AND CHOPPING

As the fruit travels through the pipes, a gentle water spray clears away surface dirt. Some

fruits like citrus and apples may be manually peeled, cored, sliced and diced. Cherries may be

soaked and then pitted before being crushed.

PASTEURIZING THE FRUIT

The fruit and/or juice continue through another set of pipes to cooking vats. Here, it is heated

to just below the boiling point and then immediately chilled to just below freezing. This

processpasteurization, prevents spoilage. In case of jelly, the pulp is forced through another

set of small openings that holds back seeds and skin and needs to be passed through a filter.

The fruit or juice is transferred to refrigerated tanks and then pumped to cooking kettles as

needed.

COOKING THE JAM AND JELLY

Pre-measured amounts of fruit and/or juice, sugar and pectin are blended in industrial

cooking kettles. If additional flavorings are to be included, they are added at the same time.

When the mixture reaches the pre-determined thickness and sweetness, it is pumped to filling

machines.

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FILLING THE JARS

Presterlized jars move among a conveyer belt as spouts positioned above pour pressured

amounts of jam or jelly into them. Metal caps are then vacuumed sealed on top. The process

of filling the jars and vacuum packing them forces all of the air out of the jars further insuring

the sterility of the product.

LABELING AND PACKAGING

The sealed jars are conveyed to a machine that affixes preprinted labels. According to law,

these labels must list truthful and specific information about the contents. The jars are than

packed into cartons for shipment. Depending on the size of the producers operation, labeling

and packaging is either achieved mechanically or manually.

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DETAIL OF UTILITIES

Detail of utilities such like electricity and water plays a vital role in setting up a plant and

therefore needs a proper estimation of cost. Likewise the estimated cost of electricity and

water as per the prevailing rates per unit multiplied with no. of hours the electricity 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

ANNUAL

REQUIREMENT 6,930,000

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MARKETING

GRAPH SHOWING SALES AND PROFITS

(In Lacs)

FOR 1ST

YEAR:

FOR 2ND

YEAR:

SALES AND PROFITS

0

20

40

60

80

100

120

140

YEARS

AMT

SALES

PROFIT BEFORE TAX

NET PROFIT

SALES AND PROFITS

0

20

40

60

80

100

120

140

160

YEARS

AMT

SALES

PROFIT BEFORE TAX

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

140

160

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

1 INSTALLED CAPACITY( In dozen)

CANNED JAMS consisting of 500 grams 24000 24000 24000 24000

JARS OF JAM, JELLIES AND MARMALADE 30000 30000 30000 30000

2 NO. OF WORKING DAYS 300 300 300 300

3 NO. OF SHIFTS 1 1 1 1

4 ESTIMATED CAPACITY UTILISATION 60% 70% 80% 90%

5 ESTIMATED ANNUAL PRODUCTION


JARS OF JAM, JELLIES & MARMALADE 18000 21000 24000 27000

6 SALES(In lacs) Rs.


JARS OF JAM, JELLIES & MARMALADE 72 84 96 108

TOTAL IN Rs. 126 147 168 189

7 AVERAGE SELLING PRICE 375 PER DOZEN

CANNED JARS consisting of 500 grams 400 PER DOZEN

JARS OF JAM, JELLIES & MARMALADE

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FINANCIAL PLAN AND PROJECTION

RESOURCES:

CAPITAL COST OF THE PROJECT:

(In lacs)

Land: 58.50

Building 31.70

Machinery 20.40

Other Fixed Assets 9.40

Security Deposits 12.50

Preliminary & Preoperative 7.50

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

Total 150

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

MEANS OF FINANCING:

Promoters capital 140 lacs

Term Loan required 60 lacs

Total 200 lacs

Employment Potential (nos.) : 80

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DETALIS OF PROPOSED MACHINERY

Particulars qty amount per pcsAmoun

t

Refrigrators 15 30000 450000

fruit washing tank 9 15000 135000

mini boilers 200 to 500 kg 9 125000 1125000

bottle washing machine 9 40000 320000

all utensils of different sizes

&mugs 9 15000 135000

Wooden barrels for storage of

pulps 9 20000 180000

laboratory equipment 4 50000 200000

kettle 9 42000 378000

TOTAL 20,40,000

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COST OF LAND

PARTICULARS APPLICANT

PLOT

AREA

APPLIED

FOR RATE AMOUNT

Masuri Gulawati Road Kriti Makkar 1800 2900 5220000

Distt. Ghaziabad Madhu Agarwal

(U.P.) PiyushAgarwal

Satyam Kinno

Shalabh Chauhan

TOTAL 5220000

Add: Conveyance Charges @ 8% 417600

Add: Registration Charges 212400

TOTAL 5850000

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COST OF BUILDING

PARTICULARS AMOUNT

ground floor

WORKING HALL 945000

INSPECTION &PACKING DIVISION 450000

GUARD ROOM,PARKING,GENERATOR

ROOM ETC 200000

FIRST FLOOR

OFFICE 700000

STORES 350000

BOUNDARY WALLS 325000

TOTAL 3170000

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DETAIL OF MISC ASSETS

PARTICULARS AMOUNT

AIR

CONDITIONERS,FURNITURE,&FIXTURES 500000

GENERATOR 375000

FIRE EXTINGUISHERS 65000

TOTAL (RS) 9400000

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COST OF PROJECT AND MEANS OF FINANCING

S.No.

ESTIMATED COST OF

PROJECT In Lacs

Expenses

1 Cost of Land 5850000

2 Building 3170000

3 Machinery 2040000

4 Misc other Assets 940000

5 Security deposits 1220000

6 Preliminary & preoperative 149000

TOTAL 14000000

A. Capital cost of Project 1400000

B. Working Capital 6000000

TOTAL PROJECT COST 2000000

MEANS OF FINANCING

1 Promoters contribution

For Capital Cost 10000000

For Working Capital 3500000

Through Internal Accriuals 500000

2 Term Loan From Bank 3800000

3 Working Capital Loan 2200000

TOTAL 20000000

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PROJECTED PROFITABILITY STATEMENT

S.No. PARTICULARS

1ST

YEAR

2ND

YEAR

3RD

YEAR

A. SALES 378 441 505

TOTAL 378 441 504

B. COST OF OPERATION

Raw Material 207 240 276

Wages 60 70 75.5

Electricity, Fuel & Power 9 11 13.4

Repairs & Maintenance 4 3.7 5.3

Other Manufacturing

Expenses 9 11.8 13.4

TOTAL 289 336.5 383.6

C. GROSS PROFIT(A-B) 89 105 120.4

D.

SELLING AND

ADMINISTRATIVE

EXPENSES 30.23 34.46 37.83

Insurance 1.2 1.45 2.38

Interest on Term Loans 11.7 8.95 9.21

Interest on Working Capital 4.56 6.82 7.08

Depreciation 15.1 17.59 13.13

TOTAL 62.79 69.41 69.63

E. PROFIT BEFORE TAX 26.21 35.6 50.77

F. PROVISION FOR TAX 7.86 10.68 15.23

G. NET PROFIT 18.41 24.92 35.54

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IMPLEMENTATION SCHEDULE

The proposed project shall be implemented in the following time period.

STAGES TIME PERIOD

Payment of 25% of Cost of Land Need to deposit 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 from date of Allotment.

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

Term loans Sanctioning & Disbursement from

Financial Institutions for Project

Within 1 to 1-1/2 month.

Commencement of Factory Building

After taking Physical Possession

Immediately after approval of building plans.

Maximum timeWithin 4 to 5 months from

taking over Physical Possession.

Completion of Factory Building Within 9 to 10 months from taking over Physical

possession.

Placement of orders of Plant & Machinery 2 months before Completion of Factory Building.

Erecting & Installation of Machinery 10th to 11th month from taking over Physical

Possession.

Placement of Technical Manpower & Executives Within 1 month from completion of Factory

Building and before Erection of Machinery.

Commencement Commercial Production Within 11th month from taking over Physical

Possession.

NOTE: Implementation of this project will be within 1 year from the date of allotment.

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ORGANIZATION AND MANAGEMENT

FORM OF BUSINESS:

The form of our business is partnership. We are six partners :-

Kriti Makkar

Madhu Agarwal

Piyush Agarwal

Satyam kinno

Shalabh Chauhan

with equal share in profits and losses.

EQUITY POSITION

The total investment in our business is Rs.200lacs out of which Rs.40lacs is invested by

each member in equal share or in profit sharing ratio like 1:1:1:1:1 or we can say that by

investing equal amount of rupees like Rs28.lacs by all partners. The other part of amount of

Rs 60lacs will be taken by bank as a loan amount. The total amount of our business is

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

KEY PERSONNEL

The key personnel or man power requirement of our business is divided in 2 parts like for

factory and administration. The overall summary of manpower requirement is 80 and the cost

is Rs.2497200. in factory the total requirement on person is 60 which include:

Factory managers

Food chemists

Supervisors

Mechanic cum boilers operators Skilled workers

Semiskilled workers

Unskilled workers

Watchman

In administration the total requirement of person is 20.

Accounts and stores staff

Purchase executive

Sales executives

Subordinates staff

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DETAILS OF MANPOWER REQUIREMENT

PARTICULARS NO. SALARY AMOUNT ANNUAL

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

FACTORY

Factory managers 2 12500 25000 300000

Food chemists 4 10000 40000 480000

Supervisors 4 7500 30000 360000

Mechanic cum boilersoperators 4 7500 30000 360000

Skilled workers 24 4500 108000 1296000

Semi skilled 8 4200 33600 403200

Unskilled 12 3800 45600 547200

Watchman 2 3500 7000 84000

60 319200 3830400

ADMINISTRATION

Accounts and Stores staff 2 4000 8000 96000

Purchase executive 2 6000 12000 144000

Sales executives 6 7000 42000 504000

Subordinate staff 10 3500 35000 420000

20 97000 1164000

SUMMARY

Factory(Wages) 319200 3830400

Administrative(Salaries) 97000 1164000

Total 416200 494400

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H.R POLICY AND STRATEGY

The H.R policy of our business is based on selection and recruitment. The process of

selection and recruitment includes different rounds which make the process easier. Before

recruitment every member of organization will be well trained by giving proper training with

most modern equipment which make them nimble in their work. Like other organization our

business also starts from top level management to lower level. Leaders and top managers

create the culture of their business. It is therefore critically important to recruit and retain the

right kinds of people at the top in leading and managing your business to high performance.

Among other things, people who display the qualities of good leadership in business are

expected to be highly ethical and organized and to manage against the detailed objectives of

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

agenda of the business. There are some steps which are providing some career planning like:

Possess a Personal Sense of Mission, Vision and Values

Develop a Personal Sense of Responsibility and Accountability

Sharpen Personal Skills in Sharing Information and Communicating Effectively

Learn How to Identify Gaps and Manage Them

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

Appreciation, job enrichment, etc)

Well developed schedule for various schemes like VRS, CRS etc

Transparent & effective communication between the top level managers and theworkers.

Implementation of decentralization and delegation of authority.

In our business the other important key for our organization are workers working in our

factory like skilled, semi skilled and unskilled workers etc who will be trained in their work

with latest machinery and technology. The training will be renewed after every 6 months or

whenever required. They will also be motivated by giving proper appraisals in the form of

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 assumed the following assumptions for financial working.

They are as follows:

Sales are assumed to be 60%, 70% and 80% of its installed capacity in the first,second and third year respectively.

10% increase in salaries and wages is provided in the subsequent years.

Other manufacturing 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.

DRINKING TOILETS

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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