Format for sending in Applications for Business Venture
Business Summary
Guidelines
As the first stage of The Economic Times The Power of Ideas this
form seeks to ascertain genuine interest among those wishing to
undertake a business endeavor. The information sought, therefore,
is two-fold:
A brief profile for public consumption. Please do not provide
any confidential data in these fields. It is being sought to
promote the larger idea of an entrepreneurial culture in India by
generating more interest.
A Business Summary for the Jury. This will be treated as
completely confidential. Information provided by you under all
heads marked Completely Confidential will be disclosed at any stage
to the Evaluating Panel for this programme. All rights of your
business idea will vest with you (please see detailed Terms &
Conditions).
Please provide information on all parameters. If you are unable
to answer a parameter, please write the reasons therein. Please do
not leave any point blank or unfilled. It may otherwise be regarded
by the Jury as an incomplete application, and rejected.
At the same time, please do not feel any compulsion to share too
much information or detail at this stage.
You may participate in The Power Of Ideas either as an
individual or team. However, the Personal Details in this business
summary format will be those of the CEO/Leader/ the one individual
who will act as the teams representative at this stage.
If short-listed, the participant and two team members will have
the opportunity to attend the group mentoring session.
Guidelines have been provided to help you fill the Business
Summary. We encourage you to provide answers in 75-100 words, but
surely not more than the word limit prescribed for each.
I. Details Required for Public Consumption (All fields
mandatory)1. Personal Details:
Name: Mr./Mrs./Ms. G. HARI KIRAN .Date of Birth (DD/MM/YYYY):
10TH MARCH 1986 .
City: HYDERABAD .
State: ANDHRA PRADESH .
2. Which industry does your business idea cater to?
(Please tick the applicable option)
FORMCHECKBOX Information Technology/Technology Enabled Both
products and services
FORMCHECKBOX Outsourcing Business Process/Knowledge Process
FORMCHECKBOX Telecom
FORMCHECKBOX Healthcare
FORMCHECKBOX Media and Entertainment
FORMCHECKBOX Internet
FORMCHECKBOX Manufacturing
FORMCHECKBOX Clean Technology/Alternative Fuel
FORMCHECKBOX Intellectual Property driven propositions
FORMCHECKBOX ( Other (Incl. summaries from sectors not mentioned
above)
If other, please specify FOOD PROCESSING INDUSTRY (PACKAGED /
CONVENIENCE FOODS READY MEALS). 3. What impact do you believe your
idea will have on your defined market?
(Since this is for public consumption, please do not disclose
either your business idea or any of its details.
Please talk of only the end-benefit your business idea can
identify with your market that will come about
because of your idea.)
Market Overview:
India is the world's second largest producer of food next to
China, and has the potential of being the biggest with the food and
agricultural sector. The total food production in India is likely
to double in the next ten years and there is an opportunity for
large investments in food and food processing technologies, skills
and equipment, especially in areas of Canning, Dairy and Food
Processing, Specialty Processing, Packaging, Frozen
Food/Refrigeration and Thermo Processing. Fruits & Vegetables,
Fisheries, Milk & Milk Products, Meat & Poultry,
Packaged/Convenience Foods, Alcoholic Beverages & Soft Drinks
and Grains are important sub-sectors of the food processing
industry. Health food and health food supplements is another
rapidly rising segment of this industry, which is gaining vast
popularity amongst the health conscious.
Currently, the food processing sector, though in the nascent
stage, constitutes 14% of manufacturing GDP amounting to products
value of Rs.2,80,000 Crores. It employs 130 lakh persons and is
supposed to increase at an annual rate of 7% out of which
Value-Added food products comprise Rs.90,000 crores.
Size of the Semi-Processed and ready to eat packaged food
industry is around Rs. 5000 crores (US $ 1.1 billion) and is
growing at over 20% with over 60,000 bakeries, 20,000 traditional
food units and several pasta food units.The convenience foods
segment, growing at a rate of 20%,offers the greatest potential.
Technological revolutions in processing and packing of food
products, coupled with fast growing inland and export markets
presents a very good potential for further investment in this
sector.India with a population of 1.10 billion (growing at about
1.7 % per annum) provides a large and growing market for food
products. Food products are the single largest component of private
consumption expenditure, accounting for as much as 49% of the total
spending.End Benefit Customer:
The formats of small packages combined with buy before you eat
variety will reduce the load on cold chain and will cater to the
large section of people without refrigerators at home.
Factors such as rapid growth in the economy, the technological
innovations in home appliances such as refrigerators microwave
ovens, rise of families with dual incomes and the changing food
habits of the population all point to the increasing need for
healthy processed food.
Rapid urbanization, increased literacy, changing life-style,
more women in work force and rising per capita income have all
caused rapid growth and changes in the demand pattern, leading to
several new opportunities in food and beverages sector.
An average Indian spends about 50% of household expenditure on
food items. Demand for processed food rising with growing
urbanization and income levels.
Largely untapped domestic market of 1100 million consumers. 300
Million upper middle class consumers consume processed &
packaged food. 200 million more consumers expected to shift to
processed packaged food by 2010.
Design of E-procurement and just in time delivery systems for
the food industry companies in big cities will save money on
inventory, wastage and bulk purchase.In view of the above facts the
demand has been rising at a good pace and there is enough latent
market potential waiting to be exploited through developmental
efforts for Packaged / Convenience Foods. (Source-Investment
Opportunities in India for FPI - Ministry of Food Processing &
Industries) & FICCI.
www.mofpi.nic.in II. Details Required for Jury (COMPLETELY
CONFIDENTIAL)1. Personal details:
Complete address: Plot No.90, Sri Krishna Nagar, Krupa Complex,
Neredmet, Hyderabad 500056.
Email: [email protected] and/or Landline (With STD code):
+919885850333, 040-27240479
2. Education:
Please add details such as the degree completed and
institution
FORMCHECKBOX Diploma: Diploma in Commercial & Computer
Practice from State Board of Technical Education & Training,
Andhra Pradesh.
FORMCHECKBOX Graduation:
Bachelor in Commerce. FORMCHECKBOX Post-Graduation:
FORMCHECKBOX Professional: Pursuing PG Diploma in Supply Chain
Management from Institute of
Management Technology, Ghaziabad one of the Top 10 B-schools in
India. FORMCHECKBOX Others. Please specify: Pursuing 6 months
Diploma in Materials Management from National
Institute of Labour Education & Management, Chennai. 3.
Experience:
Full time work experience (in years): 4.8 .Organisation
Designation Function/Role From-To
(Month/Year)
Gati Limited
Executive-SCM Supply Chain Mgt. Feb06 to Uptodate
Role: (Configuration/Implementation of Warehouse Management
System, Training to Warehouse users, HelpDesk of WMS, RFP/RFQs
handling, taking care of Warehouse/ Logistics Costing.)
Restile Ceramics Ltd Secretary-GM(S&M) Commercial / June04
to Jan06
Secretarial Activities
4. What industry will your business idea operate in?
(Please take the Evaluating Panel through a description of the
larger space/industry you are operating/planning to operate in,
highlighting the gaps and opportunities, the market leaders, the
size & scalability, etc and then, in brief introduce your
proposition/business idea. The Evaluating Panel must be able to
appreciate your knowledge of your space and the
proposition/business idea. Word limit: 150250 words)
The detailed Market Summary is given for the question no.3:
India is the world's second largest producer of food next to
China, and has the potential of being the biggest with the food and
agricultural sector.
Currently, the food processing sector, though in the nascent
stage, constitutes 14% of manufacturing GDP amounting to products
value of Rs.2,80,000 Crores, out of which Value-Added food products
comprise Rs.90,000 crores. Size of the Semi-Processed and ready to
eat packaged food industry is around Rs. 5000 crores (US $ 1.1
billion) and is growing at over 20%.
My Business Idea operates in Packaged / Convenience Foods (Ready
Meals) segment, Pls find the Gaps & Opportunities in the
Industry:
GAPS:
Packaged food products have been slow in penetrating the large
potential presented by India's 250 million strong middle class. But
due to growing urbanization and changing food habits, the demand
has been rising at a good pace and there is enough latent market
potential waiting to be exploited through developmental
efforts.
The single most important problem facing the Indian agricultural
industry is the highly inefficient supply chain. Because of lack of
cold chain infrastructure and also a food processing industry about
20 per cent of all foods produced in India (Rs. 500 b) are
wasted.
There is lots of manual handling and hence food hygiene and
quality are suspect.
The pace is slow in the food sector compared to the other
sectors such as IT and Pharma. There are no billion dollar players
in India in the food industry where as China and Philippines have
several large players with sales exceeding US $ 1 billion.
The supply chain sector is very weak with no process owner and
this can spell disaster. The food supply chain needs the attention
of the academics, the industry and the Government. India has a huge
opportunity to become a leading global food supplier if only it has
the right marketing strategies and of course agile, adaptive and
efficient supply chain. Cost of packaging ranges anywhere from 10
to 30% of production costs for the food industry and efforts should
be made to reduce these costs through use of manufacturing
automation and economies of scale.
OPPORTUNITIES:
It is the seventh largest country, with extensive administrative
structure and independent judiciary, a sound financial &
infrastructural network and above all a stable and thriving
democracy. Due to its diverse agro-climatic conditions, it has a
wide-ranging and large raw material base suitable for food
processing industries. Presently a very small percentage of these
are processed into value added products. Demand for
processed/convenience food is constantly on the rise. Fast foods,
ready meals and frozen products have increased market share in
recent years. India's comparatively cheaper workforce can be
effectively utilised to setup large low cost production bases for
domestic and export markets. Indiahas diversity in terms of its
population with several religious groups with different food habits
and culture. This diversity should be used to advantage to become
the Halal Food Hub, the Organic food hub, the Vegetarian food hub
the Sea food hub amongothers.
India presents a huge opportunity and is all set for a big
retail revolution. India is the least saturated of global markets
with a small organized retail and also the least competitive of all
global markets. A strong retail front-end can also provide the
necessary fillip to agriculture and food processing, and other
industries.
The Indian food processing market is one of the largest in terms
of production, consumption, and export and import prospects. Since,
India is one of the major food producers worldwide, with new
reforms ruling the roost, it encourages commercialization. The
country's food processing market is opening up to a wide range of
investors across the globe. Very good investment opportunities
exist in many areas of food processing industries, the important
ones being: fruit & vegetable processing, meat, fish &
poultry processing, packaged, convenience food and drinks, milk
products etc.
No industrial license required for food and agro processing
industries except for alcoholic beverages and items reserved for
small scale sector, which are: Pickles & Chutneys, Bread,
Pastry, Hard boiled sugar candy, Rapeseed Oil, Mustard Oil, Sesame
Oil, Ground nut Oil, Sweetened Cashew nut products, Ground and
processed spices other than spice oil and Oleoresin spices, Tapioca
sago and flour Automatic approval (including foreign technology
agreements within specified norms) is permitted for FDI up to 100
percent equity of Indian companies, for all food and beverages
except for alcoholic beverages and items reserved for small scale
sector
Largely untapped domestic market of 1100 million consumers. 300
Million upper middle class consumers consume processed &
packaged food. 200 million more consumers expected to shift to
processed packaged food by 2010.
Rapid urbanization, increased literacy, changing life-style,
more women in work force and rising per capita income have all
caused rapid growth and changes in the demand pattern, leading to
several new opportunities in food and beverages sector.
Initially the Pilot Business Project will start in Hyderabad
& then spread to other Metros & prospect cities.MARKET
LEADERS:
HLL, ITC, MTR and others have introduced some innovative heat
and eat dishes with reasonably good packaging. But there is lots of
manual handling and hence food hygiene and quality are suspect.
Multinational companies have entered the food value chain in India,
Cargill and Conagra in agri-inputs, Tropicana in food processing
and Metro in wholesaling. Local companies like Dabur, MTR, ITC,
Godrej, and Amul are aggressive across the value chain. Multiple
restaurant chains such as McDonalds, Pizza Hut, Dominos, Coffee
day, Qwikys and Saravana Bhavan, and Sagar Chains are growing
rapidly.INTRODUCTION OF IDEA:
The processed food industry should introduce innovative new
products of high quality at low cost in small package sizes in
ready to eat format to cash on this booming opportunity. 55% of the
Indian population is below the age of 25 years & most of the
them working away from their families. They are habituate for the
outside foods for which they dont have the other alternatives &
they are missing the taste of home food.
I am Taking an example of Dabbawalas who made an evoluation in
the field of food supply. They are suppling 2 lakhs tiffin boxes
& with a revenue of 50 crores per annum. This revenue is came
from the service of supplying the tiffin box from the customer home
to their office.
Its a very good opportunity for the Food suppliers who can
supply ready meals where the people are very busy while Rapid
urbanization, increased literacy, changing life-style, more women
in work force and rising per capita income have all caused rapid
growth and changes in the demand pattern, leading to several new
opportunities in food and beverages sector,
My Idea is to supply the Ready Meals to the work station of the
Employees with a taste of home food & giving opportunity to the
unemployed womens (house wifes).
Now a days most of the people suffering from diseases / illness
from the foods they are taking outside daily. Now its time to the
bachelors to take home made healthy food supplied at their work
stations.
The food will be supplied in a good packaging with healthy
ingredients, just like feel home food. It will be 5 days menu card
for the Ready Meals. The catching customers are Corporate offices,
Manufacturing plants, Bachelors areas, Colleges & Hostels,
Events places, etc... 5. What is the Value proposition of your
business idea?
(Present your business model and its USPs (including any
Intellectual Property and other entry barriers you may be
creating), the specific market & geography segments you will be
addressing, et al highlight any validation that you may have done
that supports your proposition. The Evaluating Panel must be able
to clearly understand your business proposition and business model
to the opportunity. Word limit: 250-750 words)
I am Taking an example of Dabbawalas who made an evoluation in
the field of food supply. They are suppling 2 lakhs tiffin boxes
& with a revenue of 50 crores per annum. This revenue is came
from the service of supplying the tiffin box from the customer home
to their office.Its a very good opportunity for the Food suppliers
who can supply ready meals where the people are very busy while
Rapid urbanization, increased literacy, changing life-style, more
women in work force and rising per capita income have all caused
rapid growth and changes in the demand pattern, leading to several
new opportunities in food and beverages sector,
My Idea is to supply the Ready Meals to the work station of the
Employees with a taste of home food & giving opportunity to the
unemployed womens (house wifes).
Now a days most of the people suffering from diseases / illness
from the foods they are taking outside daily. Now its time to the
bachelors to take home made healthy food supplied at their work
stations.
Business Model Flow Chart:
The food will be supplied in a good packaging with healthy
ingredients, just like feel home food. It will be 5 days menu card
for the Ready Meals. The catching customers are Corporate offices,
Manufacturing plants, Bachelors areas, Colleges & Hostels,
Events places, etc...There will be a Central cooking house from
where the packed ready meals will be supplied to the offices &
where the consumption for the food as per above flow chart. For
this model we have also opportunity for Takeway facility to the
customers at the Outlets. The outlets can be owned or can be
outsourced to the Franchisees.
6. What is your sales strategy? And what is your
technical/product/delivery model?
(Present your infrastructure, your key partnerships, customers,
etc. Revenue model as well model for growth/scaling up should also
be mentioned so that the Evaluating Panel can ascertain the
potential of your venture. Word limit: 250-750 words)
The catching customers are Corporate offices, Manufacturing
plants, Bachelors areas, Colleges & Hostels, Events places,
etc...The concept is very clear that to supply home made healthy
food to the customers premises (at their work stations).The food
will be supplied in a good packaging with healthy ingredients. It
will be 5 days menu card for the Ready Meals with a Central cooking
house & it will be supplied to the area wise outlets & from
outlets to the ultimate customers.It is important to forecast the
demand for each of the channels and serve the customer with in the
expected lead time. The service levels and the pricing will
determine if the customer returns for his or her next purchase. The
products should be marketed aggressilvely.
Bookings will be taken by the Co-ordinators area wise /
customers wise & Design of E-ordering (For each customer a
unique no. company wise will be provided, customer can make the
order by Phone/Internet & also by SMS) and just in time
delivery systems for this Idea will save money on inventory,
wastage and bulk purchase. Initially the Pilot Business Project
will start in Hyderabad & then spread to other Metros &
prospect cities.Delivery Model:
7. What is the competition for your business idea?
(Please identify your competition and present an analysis on
Strengths, Weaknesses, Opportunities and Threats (SWOT analysis) vs
competition. Also, state the unique features/parameters of your
proposition be it product/service. Word limit: 150500 words)MARKET
LEADERS:
HLL, ITC, MTR and others have introduced some innovative heat
and eat dishes with reasonably good packaging. But there is lots of
manual handling and hence food hygiene and quality are suspect.
Multinational companies have entered the food value chain in India,
Cargill and Conagra in agri-inputs, Tropicana in food processing
and Metro in wholesaling. Local companies like Dabur, MTR, ITC,
Godrej, and Amul are aggressive across the value chain. Multiple
restaurant chains such as McDonalds, Pizza Hut, Dominos, Coffee
day, Qwikys and Saravana Bhavan, and Sagar Chains are growing
rapidly. Coming to my Idea its unique & some competition from
the local caterers & hotels. 8. Do you have a team in mind?
(If you have a team already, please introduce your key team
members, emphasizing their academic and working experience that is
relevant to your business. The investors must be able to assess,
and get comfortable with, your ability to implement your plans. If
you are planning a new venture, please give the details of team
size, role of each team member with academic and working experience
required for each. The investors must be able to assess, and get
comfortable with, your ability to implement your plans. Word limit:
150500 words)
I am taking guidelines from the following persons who have
tremendous knowledge & leadership skills in the area of Supply
Chain / Logistics & Marketing.
Mr. Arthur Simon Bertie
Over 35+years experience in Logistics & Supply chain
solutions
Ex. Chief Business Chain Officer Gati Limited, Hyderabad
(2002-08)
General Manager Federal Express Pacific, Singapore
(1994-2000)Education: Master of International Business, University
of Wollogong (Australia)Awards
FY98 Federal Express Five Star Award
FY98 Federal Express APAC World Class Leadership Award
FY97 Outstanding Performance Award (By Temic Group of
Companies)
FY96 Federal Express APAC Leadership Award
And other awards etc.
Mr. Santosh KumarOver 13+ yrs experience in Logistics/Supply
chain solutions & Sales
Business Lead Consultant
Satyam Computers Limited
Ex. Head Logistics & New Business Development
Gati LimitedEducation: Masters in Operations from Delhi
UniversityI have my friends who holds their degrees in Hotel
Management. The team size will be finalized as and when required.
9. What are the risks you foresee in your business?
(Explain the risks that you either foresee or are already facing
in your business and explain the same, if you can. Do add the risk
reduction strategies planned. Word limit: 100250 words)
Creating Awareness is a key challenge.
A fair amount will be spent for Advertising & Marketing.
Consistant quality of food
Local competition from the caterers, canteens & hotels.
A fair amount will be spent for setting up the office &
recruiting/training the people in the era of Food Industry.
The single most important problem facing the Indian agricultural
industry is the highly inefficient supply chain. Because of lack of
cold chain infrastructure and also a food processing industry about
20 per cent of all foods produced in India (Rs. 500 b) are wasted.
Adapting efficient Supply Chain & Distribution strategy is a
key challenge.
10. What are the Financials (in Indian Rupees) for your
business?
(For those with an existing business, please use a table to
summarise your past years revenues and profits and project the same
for the next three years (if applicable). Also, state the funding
you have received to date (whether venture capitalist, family, etc)
and the funding that you are now seeking and how you plan to use
the funds. Please give forward projection of your funding
requirements for the next three years. If you are planning a new
venture, please give projected financials, investment sought and
plan for use of funds. Word limit: 100250 words)Respected
Evaluating Panel Members:
As its a new venture & cant provide the financials, it also
depends upon the Items menu for the ready meals, no.of customers
per day served etc (on an average per customer Rs.25 + distribution
cost + packaging cost, with an dishes of 2 curries, 2 rotis,
Dal/Sambar, Rice, Salad, 1sweet & chutney/Pickle) Iam giving
some cost headings which will be used for the Project. I will take
help of your team in Group Mentouring & One-on-one Mentoring,
then I can come up with exact figures.
There are 3 Costs involving, i.e.,
1. Set-up Cost (one time)
2. Fixed Cost
3. Variable Cost
Cost in Rs.
1. Fixed Cost
i) Rentals
ii) Salary
a) Cook
b) Helpers
c) Co-ordinators
iii) Vehicles - Per KM
2. Variable Cost
i) Groccery / Ingredients
ii) Packaging: Foils box / Plastic Papers
3. Set-up Cost - One time
i) Registration with Govt.
ii) Rental Deposit
iii) Renovation: (Electrical, Civil, False Ceiling etc.)
iv) Boards / Hoardings
v) Gas Application - Commercial usage
vi) Utensils: Cooking/storing/distribution etc.
vii) Brochures (Marketing) & Menu Card
viii) Tally Software for Accounting
ix) Computers
x) Printers
xi) POS (Point of Sale)
xii) Tables & Chairs
xiii) Fans & Tubelights
xiv) Other Furnitures (for Takeway Centre)
The final costing will be done for the ready meals after
finalizing the Menus of food & no.of servings etc. on the
following structure:
Name of the Dish: __________________.
No.of Portions (No.of serving plates/persons):
______________________.
Sl.No.Ingredients Qty. Rate/kg Protein Fat CarboHydrates
Calories Cost (Rs.)
Total Cost _________
Per Portion ________
FORMCHECKBOX ( I HAVE UNDERSTOOD THE TERMS AND CONDITIONS OF THE
ECONOMIC TIMES THE POWER OF IDEAS AND I RESOLVE TO ABIDE BY
THEM.
Place: Hyderabad .
Date: 18.02.2009 .
Signature
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600035
Waste
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