BUSINESS PLAN PRESENTATION

PRESENTED BY :-

TEJAS KOTWAL 13104CHETAN CHAUDHARI 13118GOVIND RATHI 13119

LT COL R CHAKRABORTY 13162

FOR YOUR BUSINESS TO GROW IT SHOULD FLOW LIKE A MIGHTY RIVER GUSHING AND SPLASHING...... WASHING AWAY ALL OBSTACLES ALONG THE WAY IN IT’S MIGHTY FORCE.....

.....AND NOT LIKE A SMALL TRICKLE WHERE EVEN THE SMALLEST OPPOSITION CAN PUT YOU OUT OF BUSINESS

NEERA:THE DRINK OF THE FUTURE

AIM AND OBJECTIVE OF THE PROJECT

AIM

TO PRODUCE NEERA UTILIZING MODERN TECHNOLOGY AND TO MAKE AVAILABLE PROCESSED COCONUT NEERA AND ITS VALUE ADDED PRODUCTS IN ATTRACTIVE CONSUMER PACKS IN ALL METROPOLITAN CITIES IN INDIA.

OBJECTIVES

SETTING UP OF AN INTEGRATED UNIT FOR

COCONUT NEERA AND ITS VALUE ADDED PRODUCTS FUNCTIONING THROUGH FARMER PRODUCER ORGANIZATION.

MAXIMUM UTILIZATION OF COCONUT CROP FOR PRODUCING A DIVERSE RANGE OF VALUE ADDED PRODUCTS FROM NEERA.

VISION AND MISSION

VISION STATEMENT:• TO BE THE LEADING PRODUCER OF AGRO

BASED HEALTH DRINKS IN INDIA.

MISSION STATEMENT:• TO MAKE AND SELL FINEST QUALITY NEERA

WITH THE COMMITMENT TO MAINTAIN ITS HIGH NUTRITIONAL VALUES

THE PROJECT

INTRODUCTION

• INDIA STANDS FIRST IN PRODUCTIVITY (8936 NUTS/HA) AND PRODUCTION (16943 MILLION NUTS) AND THIRD IN AREA UNDER COCONUT.

• THE CROP CONTRIBUTES MORE THAN RS 8000 CRORES ANNUALLY TO THE GDP AND EARNS VALUABLE FOREIGN EXCHANGE TO THE EXTENT OF RS 2000 CRORES BY WAY OF EXPORT OF COCONUT PRODUCTS.

INTRODUCTION

• THE CONTRIBUTION OF THE CROP TO THE VEGETABLE OIL POOL IN THE COUNTRY IS ABOUT 5 PER CENT AND THE CROP SUSTAINS 10 MILLION PEOPLE OF THE COUNTRY THROUGH CULTIVATION, PROCESSING, MARKETING AND TRADE RELATED ACTIVITIES.

• UNDER THESE CIRCUMSTANCES, THE CROP HOLDS MUCH VALUE IN THE INDIAN ECONOMY.

INTRODUCTION

• IN INDIA KERALA HAS THE LARGEST AREA UNDER CULTIVATION OF COCONUT AT 8.2 LAKH HA AND OCCUPIES THE NUMBER ONE POSITION IN PRODUCTION AMONG THE INDIAN STATES.

• IN ADDITION THERE IS SUBSTANTIAL GROWTH OF COCONUTS IN STATES OF MAHARASHTRA, TAMIL NADU, NORTH EASTERN STATES.

INTRODUCTION

• EXPLOITING THE POTENTIAL OF THIS CROP TO ENABLE PRODUCTION OF VALUE ADDED PRODUCTS WILL HELP IN PROTECTING THE FARMERS FROM THE ANNUALLY RECURRING PRICE FALL DURING THE PEAK PRODUCTION MONTHS.

• IT IS IN THIS CONTEXT THAT PRODUCTS FROM THE COCONUT INFLORESCENCE SAP LIKE NEERA GAINS IMPORTANCE.

INTRODUCTION

COCONUT CULTIVATION IN INDIA IS UNDERTAKEN MAINLY IN SMALL AND MARGINAL SCATTERED HOLDINGS.

THIS HAMPERS THE PROSPECTS OF PROCESSING AND VALUE ADDITION IN COCONUT.

FURTHER, THE MINDSET OF THE TRADITIONAL COCONUT GROWER IS SOATTUNED TO PROCESSING FOR COPRA AND COCONUT OIL THAT THEIR THOUGHTS DO NOT GO OUT OF THIS OIL CIRCLE.BUT COCONUT IS NOT JUST AN OILSEED CROP.

INTRODUCTION IT IS IN THIS CONTEXT THAT PRODUCTS FROM THE

COCONUT INFLORESCENCE SAP LIKE NEERA, COCONUT PALM SYRUP, HONEY, JAGGERY, COCONUT SUGAR ETC GAINS IMPORTANCE. NEERA IS THE NON-ALCOHOLIC AND NUTRITIOUS DRINK FROM THE IMMATURE INFLORESCENCE OF COCONUT WHICH CAN BE PROMOTED DUE TO ITS POTENTIAL FOR VALUE ADDITION. PRODUCTS LIKE COCONUT FLOWER SYRUP, JAGGERY, HONEY AND COCONUT PALM SUGAR ARE PRODUCED FROM NEERA.

COMPANY SUMMARY

PLANT LOCATED AT KONKAN AREA OF MAH.MEMBERS : 4DIRECTORS : 4MANPOWER : 52PRODUCT : NEERA AND OTHER

RELATED BY-PRODUCTS

NEERA• NEERA, THE SWEET SAP OF THE COCONUT PALM, IS FAST BECOMING A

POPULAR DRINK ON ACCOUNT OF ITS HIGHLY NUTRITIVE VALUE, DELICIOUS TASTE AND AGREEABLE FLAVOR. IT IS OBTAINED BY TAPPING THE UNOPENED INFLORESCENCE OF THE COCONUT PALM.

• IT IS A NON- ALCOHOLIC AND NUTRITIOUS DRINK. NEERA IS A RICH SOURCE OF SUGARS, MINERALS AND VITAMINS. IT IS SWEET AND OYSTER WHITE IN COLOUR AND TRANSLUCENT.

• IT IS TAPPED FROM THE COCONUT INFLORESCENCE AND IS FILTERED, PASTEURIZED, AND BIO PRESERVATIVES ADDED TO PRESERVE THE PRODUCT. TREATED NEERA CAN BE PRESERVED IN CANS UPTO 2 MONTHS AT ROOM TEMPERATURE. IT CAN BE PACKED IN GLASS BOTTLES.

USES OF NEERA• DELICIOUS HEALTH DRINK• GOOD FOR DIGESTION, FACILITATES CLEAR

URINATION AND PREVENTS JAUNDICE.• LOW GLYCEMIC INDEX (GI OF ONLY 35) AND

HENCE DIABETIC-FRIENDLY• ABUNDANT SOURCE OF MINERALS• 17 AMINO ACIDS, VITAMIN C,• BROAD-SPECTRUM B VITAMINS• IT CAN BE USED AS AN IDEAL SWEETENER

Composition of NeeraTotal solids (g/100 ml) 15.2 to 19.7

pH 6 to 6.5

Specific gravity 1.058 to 1.077

Total sugars (g/100 ml) 14.40

Original reducing sugars (g/100 ml) 5.58

Total reducing sugars (g/100 ml) 9.85

Total ash (g/100 ml) 0.11 to 0.41

Citric acid (g/100 ml) 0.50

Alcohol (in %) nil

Iron (g/100 ml) 0.15

Phosphorus (g/100 ml) 7.59

Ascorbic acid (mg/100 ml) 16 to 30

Total protein (g/100 ml) 0.23-0.32

BY-PRODUCTS

• COCONUT NEERA

• COCONUT HONEY

• COCONUT SUGAR

TECHNOLOGY

• AVAILABLE WITH :-• CDB INSTITUTE OF TECHNOLOGY • SCMS INSTITUTE OF SCIENCE AND

TECHNOLOGY• DEFENCE FOOD RESEARCH LABORATORY • KERALA AGRICULTURAL UNIVERSITY • CENTRAL PLANTATION CROPS RESEARCH

INSTITUTE (CPCRI)

TECHNOLOGY• USING VARIOUS TECHNOLOGIES NEERA CAN BE

PROCESSED AND PRESERVED IN ITS NATURAL FORM TO RETAIN ITS NUTRITIONAL CONTENT AND TASTE.

• THE SHELF LIFE IS EXTENDED BY 2 MONTHS BY USING TECHNIQUES LIKE CENTRIFUGING,PASTEURIZATION.

• TECHNOLOGY FOR PROCESSING AND PRESERVATION OF NEERA HAS BEEN DEVELOPED BY CENTRAL FOOD TECHNOLOGICAL RESEARCH INSTITUTE, MYSORE.

TECHNOLOGY• THE PROCESS ENSURES HYGIENIC COLLECTION OF

SAP USING ANTI FERMENT AGENTS APPROVED BY FSSAI.

• THE FRESH COCONUT SAP COLLECTED IN A MANNER THAT COULD BE TRANSPORTED IN AMBIENT CONDITIONS TO THE FACTORY SITE.

• THE COCONUT SAP IS PROCESSED INTO A NON ALCOHOLIC NUTRITIOUS DRINK THROUGH CENTRIFUGAL FILTRATION AND PASTEURIZATION AT THE DESIRED TEMPERATURE AND PACKED INTO CONSUMER PACKS

MODUS OPERANDI

• TRAINING PROGRAMS INCLUDING THEORY AND PRACTICAL SESSIONS FOR FRESHERS AS WELL AS FOR TRADITIONAL TODDY TAPPER TO EQUIP THEM AS NEERA TECHNICIANS.

• AS A RESULT A TEAM OF MENTALLY AND PHYSICALLY FIT NEERA TECHNICIANS WILL BE AVAILABLE FOR NEERA TAPPING.

MODUS OPERANDI NEERA COLLECTION :- NEERA COLLECTION IS A STEP BY STEP PROCESS IN HYGIENIC

CONDITIONS. A) SELECT THE MATURE INFLORESCENCE AND REMOVE

UNWANTED LEAF FROM SURROUNDINGS OF INFLORESCENCE B) REMOVE THE TIP OF INFLORESCENCE USING KNIFE C) APPLY THE DISINFECTANT ON THE INFLORESCENCE AND

NEIGHBORING AREA USING SPRAYER D) WIPE IT USING COTTON E) BEAT THE SPADIX TO ENSURE SMOOTH FLOW OF NEERA

NEERA COLLECTION :-

F) APPLICATION OF GLOVES AND OPENING OF STERILIZED CLAY G) APPLICATION OF STERILIZED CLAY H) PUT ANTI-FERMENT SOLUTION INTO THE COLLECTING VESSEL I) KEEP THE VESSEL ON THE TOP OF THE INFLORESCENCE FOR COLLECTING NEERA J) POUR THE COLLECTED NEERA INTO TRANSPORTATION VESSELS FOR FURTHER PROCESSING K) REMOVE THE EXCESS OF COLLECTED NEERA BY WASHING WITH DISTILLED WATER (3 TIMES) L) AGAIN PUT ANTI-FERMENT SOLUTION INTO THE COLLECTING VESSELM) FIT THE COLLECTING VESSEL ON TOP OF THE INFLORESCENCE.

PROCESS FLOW FOR NEERA MANUFACTURINGCollection of sap

(using antifermenting agent)

Chilling at 4oC

Quality and quantity checking

Separation (based on quality)

Centrifugation (at 8000-10000 rpm)

Deodorisation

Pasteurization (80oC, 15 minutes)

Addition of additives

Cooling and packing Neera drink

PRESERVATION AND PACKING

Neera collection in HDPE cans

Transportation of neera in insulated ice boxes

Centrifugation filtration of Coconut Neera Storing of raw Neera in chillers

PRESERVATION AND PACKING

Centrifugation filtration of Coconut Neera

Pasteurization of Coconut Neera

Preservative treatment of Neera

Storage of packed Neera Packing of neera in Automatic filling machine

Business Model• Average yield is expected to be in the range of 2-4

ltr per day per tree.• Proposed Plant capacity is 2000 ltr/day.• Considering 2.5 ltr of avg yield per day per tree 800

tress are to be tapped.• Rs 500 per palm (yielding 2.5 ltr per day) per month

are proposed as remuneration for the farmer • Considering 70% conversion of Neera to final

product, plant output is pegged at 1400 ltr per day.• 250ml bottles are planned at the rate of

Rs.20/bottle.

MARKET DEMAND

• COCONUT NEERA ALREADY ENJOYS AN EXCELLENT MARKET POTENTIAL IN COUNTRIES LIKE SRI LANKA, MYANMAR, THAILAND, PHILIPPINES AND OTHER PACIFIC COUNTRIES.

• • COCONUT NEERA, IF INTRODUCED IN INDIA IN THE RIGHT

PERSPECTIVE IS BOUND TO CREATE A HUGE MARKET POTENTIAL AS A HEALTH DRINK AND AS A BASE FOR MANUFACTURE FOR VALUE ADDED COCONUT PRODUCTS LIKE CONCENTRATED SYRUP, SUGAR, HONEY ETC WHICH HAS WIDE EXPORT POTENTIAL IN USA, EUROPE AND AFRICAN COUNTRIES.

MARKET DEVELOPMENT

• PRESENTLY NEERA IS NOT LOOKED UPON AS A DRINK OF MASS CONSUMPTION DUE TO ITS LIMITED VISIBILITY AND LACK OF AWARENESS

• COCONUT NEERA AND ITS VALUE ADDED PRODUCTS CAN BE POSITIONED IN THE MARKET FOR THE TARGETED SECTION LIKE HEALTH CONSCIOUS PEOPLE, DIABETIC PATIENTS, KIDS AND YOUNGSTERS AS A NATURAL NUTRITIVE PRODUCT TO REPLACE SOFT DRINKS, ALSO SUGAR AND HONEY AFTER VALUE ADDITION.

• THERE IS BOUND TO BE A GROWING MARKET TREND FOR COCONUT NEERA AND ITS VALUE ADDED PRODUCTS IN BEVERAGES, FOOD, BAKERY AND CONFECTIONARY INDUSTRIES.

MARKET POTENTIAL

• INDIA HAS ABOUT 130 MILLION PALM TREES.• HEALTH DRINK MARKET IN INDIA IS A FAST

GROWING MARKET AND NEERA COULD BE MARKETED AS A HEALTH DRINK WITH ALL NATURAL INGREDIENTS.

• COCONUT NEERA ENJOYS A WIDE MARKET POTENTIAL IN COUNTRIES LIKE USA, EUROPE AND AFRICAN COUNTRIES.

MARKET PROMOTION

• AVAILABILITY OF LOCAL MARKETS LIKE SUPERMARKETS, HYPER MARKETS, ETC.

• REACH OUT TO KIDS AND YOUNGSTERS THROUGH CANTEENS, MALLS ETC

• USE OF EXISTING MARKET AMONG TOURISTS • INTRODUCTION AS EXOTIC PRODUCTS IN

LUXURY HOTELS, CLUBS AND RESORTS.

SITUATION ANALYSIS

1. TARGET MARKET SUMMARY:-

THE DRINK WOULD BE MARKETED KEEPING FOCUS UPON THE MIDDLE AND UPPER CLASSES.

IT WILL BE POSITIONED AS A DRINK THAT IS HEALTHY, TASTY AND ALSO FUN TO HAVE KEEPING IN MIND THE POTENTIAL OF THEHUGE YOUNG POPULATION.

SITUATION ANALYSIS

2. MARKET NEEDS:-THERE HAS BEEN A GROWING AWARENESS ABOUT THE

ILL-EFFECTS OF CONSUMING CARBONATED DRINKS.

REALIZATION OF THE NEED FOR NUTRITIONAL INTERVENTIONS IN DAILY LIFE.

WITH RISE IN DISPOSABLE INCOMES,CHANGING LIFESTYLES DEMAND FOR NON ALCOHOLIC BEVERAGES IS BOUND TO INCREASE.

SITUATION ANALYSIS 3. MARKET TRENDS:-

WITH RISING INCOME LEVELS,CHANGING LIFESTYLES AND A YOUNG POPULATION THERE HAS A SHIFT TOWARDS HEALTHY FOODS.

EVEN BIG FIRMS LIKE COCACOLA AND PEPSI INVESTING HEAVILY INTO HEALTH DRINKS.

PRESENT PER CAPITA CONSUMPTION IS VERY LOW COMPARED TO OTHER MARKETS,HENCE TREMENDOUS GROWTH POTENTIAL IN FUTURE.

SITUATION ANALYSIS

4.MARKET GROWTH:-

GROWTH RATE OF CARBONATED DRINKS DECELERATED AT 15-20 % OVER LAST 3 YRS.

NON CARBONATED DRINKS ARE SET TO GROW AT A CAGR OF 35%

NON CARBONATED DRINKS SECTOR SET TO GROW TO 54000CR BY 2015 FROM 22000 IN 2012.

COMPETITION OVERVIEW

COMPETITION WOULD EXIST ON 2 FRONTS:1) DIRECT:• GOVT SUBSIDIZED NEERA SOLD BY LOCAL SELLERS.• PEPSICO AND COCA COLA PRODUCTS• ENERGY DRINKS LIKE BURN,GLUCOND,ETC.2) INDIRECT:• AERATED BEVERAGES LIKE COKE AND PEPSI.THEY COULD BE A PART OF CARBONATED DRINKS.

MARKETING STRATEGYAS A NEW ENTRANT INTO THE NICHE MARKET,

MARKET PENETRATION WOULD BE THE CHIEF GOAL.

HIGH NUTRITIONAL VALUE AND OTHER HEALTH BENEFITS TO BE THE MAIN USP.

THE TARGET MARKET WOULD BE MIDDLE AND UPPER CLASSES WHO ARE WILLING TO PAY A PREMIUM FOR HEALTHY HYGIENIC DRINKS.

MARKETING STRATEGY

AN ABUNDANT SOURCE OF MINERALS, 17 AMINO ACIDS, VITAMIN C,LOW GI INDEX,BROAD-SPECTRUM B VITAMINS AND ZERO PH, NEERA DRINK WOULD BE POSITIONED AS A HEALTHY SAFE ALTERNATIVE TO AVAILABLE DRINKS THAT IS FUN TO HAVE.

A STATEWIDE ADVERTISING CAMPAIGN PROMOTING OUR PRODUCT THROUGH LOCAL TV,HOARDINGS,NEWSPAPER ADS,FREE SAMPLES.

DISTRIBUTION CHANNEL

A TWO LEVEL CHANNEL WOULD BE USED TO GET THE PRODUCT TO THE CONSUMERS.

MANUFACTURER-DISTRIBUTOR-RETAILER.

THE DISTRIBUTOR WOULD ACT AS A MIDDLEMAN AND DISTRIBUTE THE PRODUCT TO THE RETAILERS IN HIS AREA.

SWOT ANALYSISStrengthsØ Market hypeØ Support from Govt.

WeaknessesØ Unavailability of successful Neera

production and marketing modelsAmbiguity in regulatory compliance

needsØ Lack of funding support for farmer

federations

OpportunitiesØ Health benefits of NeeraMarket shift towards natural

food productsØ Consistent & attractive income for farmersØ Potential contributor to GDP

ThreatsØ Food safetyØ Opposition from Toddy industryØ Threat from soft drinks majorsØ Fund dry out

ECONOMIC COST BENEFITS DIRECT EFFECTS :- THIS PROJECT CREATES MUCH DIRECT EFFECTS ON THE

ECONOMY. AS THIS IS AN INITIATIVE OF FARMER COLLECTIVES, IT BRINGS DIRECT BENEFIT TO THE FARMERS BOTH IN CASE OF BUSINESS AND PERSONAL INCOME. THE PROJECT EMPLOYS COCONUT PRODUCER SOCIETIES, FEDERATIONS AND COMPANIES, THUS IMPROVING THE EMPLOYMENT RATE AND CREATING A NEW SET OF 'GREEN COLLAR EMPLOYEES' IN THE COUNTRY.

INDIRECT EFFECTS:- INDIRECT EFFECT OF THE PROJECT IS THE SIMULTANEOUS

GROWTH OR EXPANSION OF BEVERAGE, FOOD AND CONFECTIONARY INDUSTRIES TO A NEWER RANGE.

SOCIAL COST BENEFITS

THE SOCIAL COST-BENEFIT ANALYSIS (SCBA) FACILITATES THE WEIGHING UP OF ALL CURRENT AND FUTURE SOCIAL BENEFITS OF THE PROJECT.

THE SOCIETY SHALL WITNESS A REMARKABLE IMPROVEMENT IN THE LIFESTYLE AND HEALTH HABITS OF THE PEOPLE.

THE COCONUT PRODUCERS AND TAPPERS COULD EXPECT A CONSISTENT INCOME FLOW IN A YEAR WHICH COULD ENSURE POVERTY ERADICATION.

ENVIRONMENTAL COST BENEFITS

THE INTEGRATED UNIT OF NEERA AND ITS VALUE ADDED PRODUCTS ENSURES ECONOMIC RETURNS WITHOUT CREATING ANY ECOLOGICAL IMPACT IN THE SHORT OR LONG TERM PROCESS.

IT ENSURES PROPER UTILIZATION OF RESOURCES AND THE PROJECT SHALL BE CONSIDERED A GREENFIELD PROJECT AS THERE IS AN EFFLUENT TREATMENT SYSTEM TO TREAT THE WASTE WATER WHICH IS THE ONLY WASTE CREATED OUT OF THIS UNIT AND ALSO THERE IS NO THREAT OF GREENHOUSE GAS EMISSION.

ALSO THERE IS A SCOPE FOR USING SOLAR ENERGY AS THE ENERGY CONSUMPTION OF THE UNIT IS QUITE SIGNIFICANT.

FINANCIALS

RISK

• ENTRY OF ESTABLISHED MARKET PLAYERS• SUDDEN REFUSAL FROM FARMERS TO SUPPLY

RAW MATERIAL.• CHANGES IN CONSUMER PREFERENCES AND

TASTE.

CONCLUSION• IN THIS PROJECT VALUE ADDITION OBTAINED

BY FRESH COCONUT SAP TO NEERA IS QUITE SIGNIFICANT. COCONUT NEERA AND ITS VALUE ADDED PRODUCTS ARE BOUND TO HAVE AN EXCELLENT MARKET POTENTIAL IN THE COMING YEARS.

• ALL THE INDICATORS DISCUSSED SO FAR SUPPORT THE VIABILITY OF THE PROJECT.

References

• coconutboard.gov.in• www.newinndianexpress.com• www.business-standard.com

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