REPORT ONGROUND AND

PROCESSED SPICES

KEERTHANA B SSOWMYA C LAKSHAY M R

GAWLI SOPAN BALIRAM

SHARAN GVARUN B

SAMBIT MISHRA

SUBMITTED BY :

INTRODUCTION Spices play an important role in enhancing the flavour and

taste of the processed foods. They are also used in medicine because of their carminative stimulating and digestive properties.

Although spices are traded chiefly in an unprocessed form, processed form like curry and spice powder have great demand in market.

PROJECT ECONOMICS (IN DETAIL)

RAW MATERIAL REQUIRED

LOCATION OF OUR SPICE UNIT

Owner: Especia Spice Enterprise At: Belvai, Karnataka Dist: Dakshina Kannada Nearest railway station : Mulki Railway Station (30km) Nearest Sea Port: New Mangalore Port (45km) Nearest Airport: Mangalore Airport Terminal (56km)

Location of proposed Start Up

FINANCIAL ASPECTS

Land: ½ Acre from state govt. 11,00,000Processing shed 2500 sq. ft@250/sq. ft. 6,25,000Store 1000 sq. ft. @ 600 /sq. /ft. 6,00,000Office cum laboratory 400 sq. ft. @400 /sq. 2,40,000Water boring and distribution 50,000Compound wall, watchman shed and road development

1,00,000

Parking place 10,000 sq. ----------Garden place 5,000 sq. ----------Rest place future expansion ----------Total 27,15,000/-

MACHINERY AND EQUIPMENT

Sl. no.

Description Qty. Price Total value

1 Micro pulveriser with 10 HP motor starter and all accessories

two 80000 /-

1,60,000

2 Disintegrator 12” with 7.5 HP motor and accessories for haldi

one 60000/-

60000

3 Hot air drier cabinet type elect. Optd. with temp. control devices 2 KW

one 8000/- 8000

4 Platform weighing balance of 200 Kg. cap.

One 30000/-

30000

5 Counter scale balances 5 kg. cap. five 2000/- 10000

CONTD…

6 Sieving m/c. locally fabricated one 5000/- 5000

7 Automatic form fill and seal m/c (5 gm. to 100 gm.)

one ---------- 1,80,000

8 Automatic form, fill & seal machine (50 gm. to 250 gm.)

two 2,50,000

5,00,000

9 Testing equipment & lab. Accs. LS ---------- 40000

10 Office furniture, comp printer LS ---------- 40000

11 Erection, electrification charges@ 10%

------ ---------- 1,03,300

Total 11,36,300

PRE-OPERATIVE EXPENDITURE

Project profile 300Telephone 3,000Advance for packaging material (Pouch, cartoon, etc )

1,50,000

Travel 15,000 Sales tax regn. 5,000

Other misc. exp. 5,000 Total 1,78,300

Fixed capital Inv. = 27, 15,000 + 11, 36,300 + 1, 78,300 = 40, 29,600/-

MARKET OPPORTUNITIES

Spices are essential ingredients imparting taste and flavour to food preparations.

Have high demand in restaurants, hotels, catering services, food processing industries, and road side eateries, house holds and so on.

Spices are fast moving consumable items and have large potential there has to be a wide-spread network of dealers or retailers backed up by advertisements in local media.

Total export of spices from the country during the year 2009-10, 2010-11 and 2011-12 is estimated to be Rest. 55650 laces, Rest. 684070/- laces and Rest. 978342/- laces respectively.

STRATEGY OF PROJECT IMPLEMENTATION

The implementation strategy is the most detailed component of the proposed strategic implementation framework.

This step requires the definition of robust actions, the evaluation of budgetary requirements, the study of time and organisational constraints, the elaboration of human resource issues, management and plan coordination, migration and diffusion etc.

In addition, the action plans need to be examined concerning its risks, strategic importance and harmonised integration within the overall evolution of the specific organisation.

CONTD…

There are three main stages to the development of the implementation strategy: 1)Definition of action plan elements, 2)Elaboration of action plan, and 3)Risk mitigation and coping strategies.

Workers working on spice laboratory

PRODUCTS

PRODUCTS

Spice marketing in local territorials

ORGANIZATIONAL STRUCTURE

Especia Spice EnterpriseManager : Harsha TejWorkers in department : 17Salesman : 7

FINANCE

Own capital Loan from Canara Bank From other sources

4Ps – 4Cs

PRODUCT - CUSTOMER SOLUTION PRICE - CUSTOMER COST PLACE - CONVENIENCE PROMOTION - COMMUNICATION

PRODUCT - CUSTOMER SOLUTION

Products should be satisfactory with respect to the costumer’s need.

We try to produce good quality product, better design by local skilled laborers which will suit the customers.

We produces different types of spices like chilly powder, cinnamon powder, turmeric powder, ginger paste etc.

PRICE - CUSTOMER COST

The price should be affordable and acceptable by the customers. We provides a packet of 100g Lal Mirchi chilly powder @ RS24.50

while MTR provides the same product @ RS 27.

PLACE - CONVENIENCE

The place should be convenient with good transportation and marketing facility.

Especia Spice Enterprise is located inside Belvai NAC to the side of NH-13.

The market is very close to the production house.

PROMOTION - COMMUNICATION

Promotion aims at proper publicity and marketing of the product by influencing the customer.

Especia Spice Enterprise has hoardings in the Majestic bus stand and have also pasted wall posters in various streets of Mangaluru.

The Showroom is in the roadside. So Especia Spice Enterprise has also hoardings and light board near the start up.

SWOT ANALYSIS

STRENGTH

Good relationship with customersGood internal communicationsHigh traffic locationSuccessful marketing strategiesReputation for innovationExcellent staff with knowledge of existing products

CONTD…

WEAKNESS

Currently struggling to meet deadlines

High rental costs Poor record keeping

Cash flow problems Start up is very young Market research data may

be out of date

CONTD…OPPORTUNITIES

Similar products on the market are not as reliable or are more expensiveLoyal customersProduct could be on the market for festiveCustomer demand - have asked sales staff for similar product

CONTD…

THREATS

Inadequate production capacityUnavailability of skilled laborersTough competitionChanging customer taste and preferenceCompetitors have launched a new advertising campaign

BCG GROWTH-SHARE MATRIX

BCG Matrix provides a graphic representation for an organization to examine different businesses in it’s portfolio on the basis of their relative market share and industry growth rates.a)Stars- large market share in a fast growing industry.b)Cash Cows- large market share in a mature, slow growing industry. c)Question Marks- low relative market share in a high growth industry. d)Dogs- weak market shares in low-growth markets.

CONTD…

Especia Spice Enterprise and Industry is a small organization having very weak market share but high growth.

Due to various reasons like unavailability of skilled manpower, changing customer preferences etc., it faces lots of challenges to grow its business.

Hence it can be represented as “Question Marks-” in the BCG matrix.

FUTURE EXPANSION OF THE ENTERPRISE

We decide to go global in a number of ways. Growing markets, rising consumer spending, improved business climate--sometimes the only place to find these things is overseas.

Doing business internationally can take the form of exporting, licensing, a joint venture or manufacturing, but whatever form you choose, the basic business rules apply: assess customer demand, gain legal and accounting assistance, protect intellectual property and obey regulations.

CONCLUSION

Being an entrepreneur instead of an employee means you need to brand yourself differently, or at least more directly.

Your identity should be about what you’ve done, not what title you’ve been given.

If you fail in business, it’s up to you to rebuild.