OVERVIEW OF THE BUSINESS

The name of our business is ‘Radhe Canteen’, and it is situated in Odhav Industrial Area of
Ahmedabad. We have so far only one location of this business but in future we think of starting
one more location of this business. As our business is of providing food and it is granted in by
the government as far as its legality is concern. The founder of this business are Jignesh panchal,
Dhwani Patel, Prahladsingh chundawat, Mehul jadwani . The qualification of these partners’ is
MBA. We divide our share by equal participation. We, the partners have invested 6 lakh in this
business. So we have starting capital of Rs.6,00,000. We are planning to start this business from
next month. Basically our main food is “Gujarati Thali”, and in Gujarati Thali the menu will be
changed day by day. We provide lunch and dinner both simultaneously.
Our main objective is to provide hygienic and hot food, seating arrangement, changing menu of
the food day by day, providing better service than other. We are going to operate in restaurant
industry. It is a growing industry. Restaurant Industry facing some challenges viz. economical
changes, political changes, technological changes, environmental changes, etc. We have a plan
about getting Raw Material. Right Now we get it from kalupur market which is somewhat costly
for us and it affect the finished product (Gujarati Thali) of our business. So what we’ll buy the
raw material directly form the farmer, so that we can reduce our cost and by that we can increase
our net sales, which ultimately result in a great profit.
 ABOUT THE PROJECT
Here we’ll start a canteen business Odhav Industrial Area of Ahmedabad. The reason for
planning this business is that there are many company situated and in these companies there are
numbers of people working. Thus we have assumed that we’ll get sales by them.

Actual product

We provide Gujarati dish in two shifts. It includes:

• One or two green vegetable
• Rice or Khichadi
• Cadi or Dal or Dalfry
• Chapatti
• Buttermilk
• Salad

Extra product

1. Sweet on demand
2. Pickle on demand
3. Curd on demand

Target Customers

Here our target customers are not only the workers but also the employees of the companies who
does not bring Tiffin with them. And also local customers such as truck drivers.

Personal information about promoters

Name Jignesh panchal Prahladsingh chundawat

Add C-462, Manishpark, Gurjarwado Near Sharda
Ambikanagar Cinema
Odhav,Ahmedabad 382415 Patan (N.G.) 384265
Tel No. (M) 9998565320 (M) 9976540098
Date of Birth 09-09-1984 6-05-1986

Age 24 years 22 years

Educational B.com B.B.A.
Qualification M.B.A. M.B.A.
Experience Fresh Fresh
Special Training Computer Basic Computer Basic, Prowess,
Tally
Family Background Working Working
Strength Finance Skill Finance Skill
 TARGET MARKET

We’ll serve this business in the geographical area of the Odhav in India. It is semi-urban area
where both rural and urban people live. The population density of this area is more than 6 lakh.
The climate condition of this area is very hot. There are many other business in this area. All the
business in this area are related to the factory and production. Our target customers are not only
the workers but also the employees of the companies who do not bring Tiffin with them.The
general observable of the customer are:

Age: 18 to 60
Income: 2,000 to 20,000
Occupation: Industrial workers employees, employers
Marital Status: Both married & Unmarried
Education: Either 10th or more than it
Spending Ability: Rs. 30/ day or more for one dish

The factors that most influences the customers’ purchasing decision is price, service and quality.
The approximate size of our target customers is 350/ day first year. The size of our customers
will be 400 /day and the price per dish will be Rs. 25 per dish and third year the size will be
550/day but the price will be the same.

THE COMPETITION
Competition type (specific business)

1. Small vendor of idli or dhosha.

2. Vendor of snakes or fast food.
3. Canteen of tea or coffee.
4. Small restaurant
Strength of specific business

1. Price is low
2. Old business
3. Catering more and more customers
4. This businesses are old than us.

Weaknesses of specific business

1. Sitting arrangement facilities is not better

2. Sanitation problems
3. Equipment problems
4. Place problem
5. Quality is not good

Why will your customers choose your product over your competitor?

1. By providing hot and fresh lunch and dinner.

2. By providing sitting arrangement facilities.
3. Water facilities both cold and hot.
4. We are providing meal in good quality as well as in affordable price.
 MARKET PLAN AND SALES PLAN

We’ll go to positioning our canteen in the market as provider of good service, good quality, and
variety in daily food. We want customer to think of our canteen whenever they hear about
service and quality. We have a company tagline that “low price, healthy food”.

The business place is industrial area, so we have to do marketing by the following way. We have
banners for marketing our canteen in the Odhav industrial area. We have pamphlets which
include all kind of price of the product, weekly menu, name of the canteen, etc.

We spend Rs. 7,000 per year on marketing and we have budgeted marketing expense Rs. 7,000.
This is not so much but as far as our business is concern, we have to focus on the workers,
employees of industrial area, so for that we need not give any advertisement on TV or in any
newspaper. So what we have done is that we advertise our business by banners and by giving
pamphlets to the workers, employees. In other sense, we directly advertise our product to the
customers by that. And we will do this on alternate month by giving them pamphlets. And as per
getting response we’ll innovate our marketing by providing some promotion schemes & offers.
 FUTURE DEVELOPMENT

Canteen’s first goal is to achieve the highest amount of response in short period of time by
providing good quality. After one year if we will get great amount of response, we plan to
establish a new venture of fast food chain in other industrial area of Ahmedabad city. In future
we want to develop our business by providing them a great satisfaction with their food, and by
providing them all kind of services and facility related with their food and their lunch time which
can be possible, so that there is an image will print in their mind that whenever they talk about
quality, service, or facility, they remember name of our Canteen, by which we can attract many
customers as well as can satisfy them and by that we can expand our target market.

Milestone

Market Expansion
Increasing the product life cycle
Customer Satisfaction
Increasing response
Quality Standard

Level to achieve in future

At least five restaurants in industrial area of Ahmedabad.

Product diversification and process modification.
Introduction of new products
 FINANCIAL PLAN

COST OF THE PROJECT

The cost of the project has been estimated at total Rs.6, 00,000.

Sr. No Particular Rupees

1 Building on Rent (deposit) 50,000
2 Plant & machinery 62,400
3 Other Fixed Asset 46,500
4 Preliminary & pre-operative Expenses 12,000
Total 170900

Total investment is of Rs 6, 00,000 and the cost of the project is of Rs. 170900. So we have
reserve of Rs. 429100.

MARKETING BUDGET

Sr. No. Particular Rs.

1 Banner & Board 2,000
2 Pamphlets 5,000
Total 7,000

SALES PROJECTION
Year 1

Customers Rs./Dish Total Rs.

350 per day 30 10500
2450 per week 30 73500
10500 per month 30 315000
126000 per year 30 3780000
 SALES PROJECTION

For Year 2

Customers Rs./Dish Total Rs.

400 per day 30 12000
2800 per week 30 84000
12,000 per month 30 3,60,000
1,44,000 per year 30 43,20,000

SALES PROJECTION
For Year 3

Customers Rs./Dish Total Rs.

550 per day 25 13750
3850 per week 25 96250
16500 per month 25 412500
198000 per year 25 4950000

MEANS OF FINANCE

The cost of the project as stated above is suggested to be met through the sources:

Sr. No Particular Rupees

1 Promoters’ Contribution 6,00,000
Total 6,00,000
PRELIMINARY & PRE-OPERATIVE EXPENSES

Sr. No Particular Rupees

1 Legal Expenses, Scrutiny Fees 1,000
2 Project Report Preparation 500
3 Establishment Expenses 500
4 Electrification & Water Deposits 3,000
5 Inauguration Expenses & Other Expenses 5,000
6 Telephone Deposit 2,000
Total 12,000

MANPOWER REQUIREMENTS
Year 1
(At 90% capacity utilization)
(Total Amount to be paid by way of Salary & Wages)

Sr. No. Particular Nos. Salary/ month Yearly Rs.

1 Supervisor 1 4,500 54,000
2 Skilled Workers (Cook) 2 5,000 1,20,000
3 Semi-skilled Workers 5 3,500 2,10,000
4 Unskilled Workers 5 2,000 1,20,000
5 Accountant Cum Clerk 1 4,500 54,000
SUB Total 14 46,500 5,58,000
Add: benefits@30% 1,67,400
Grand Total 7,25,400
 UTILITIES AND OVERHEAD COSTS
Year 1
(at 90% capacity utilization)

Sr. No. Particular Monthly Rs. Yearly Rs.

1 Electricity 5,000 60,000
2 Fuel 10,400 1,24,800
3 Water 200 2,400
4 Transportation with wages 1000 12,000
Total 16,600 1,99,200

UTILITIES AND OVERHEAD COSTS

Year 2
(at 90% capacity utilization)

Sr. No. Particular Monthly Rs. Yearly Rs.

1 Electricity 6,663 79,960
2 Fuel 13,860 1,66,326
3 Water 248 2,966
4 Transportation with wages 1,500 18,000
Total 22,271 2,67,252

UTILITIES AND OVERHEAD COSTS

Year 3
(at 90% capacity utilization)

Sr. No. Particular Monthly Rs. Yearly Rs.

1 Electricity 8,329 99,950
2 Fuel 17,326 2,07,907
3 Water 308 3,707
4 Transportation with wages 2,000 24,000
Total 27,963 3,35,556
 ADMINISTRATIVE EXPENSES
Year 1
(at 90% capacity utilization)

Sr. No. Particular Monthly Rs. Yearly Rs.

1 Stationary & Printing 2,000 24,000
2 Telephone, Fax 500 6,000
3 Legal Charges 500 6,000
4 Miscellaneous 500 6,000
Total 3,500 42,000

ADMINISTRATIVE EXPENSES

Year 2
(at 90% capacity utilization)

Sr. No. Particular Monthly Rs. Yearly Rs.

1 Stationary & Printing 2,142 25,713
2 Telephone, Fax 535 6,429
3 Legal Charges 535 6,429
4 Miscellaneous 535 6,429
Total 3,750 4,5000

ADMINISTRATIVE EXPENSES
Year 3
(at 90% capacity utilization)

Sr. No. Particular Monthly Rs. Yearly Rs.

1 Stationary & Printing 2,285.5 27,429
2 Telephone, Fax 571.5 6857
3 Legal Charges 571.5 6857
4 Miscellaneous 571.5 6857
Total 3,500 42,000
 ANALYSIS OF BREAKEVEN POINT (BEP)

(A) Sales Realization Rs. 37,80,000

(B) Variable Costs

Sr. No Particular Monthly Rs. Yearly Rupees

1 Raw Material 1,44,580 17,34,000
2 Power, Fuel, Water 15,600 1,87,200
3 Wages 500 6,000
Total 1,60,680 19,27,000

(C) Fixed Costs

Sr. No Particular Yearly Rupees

1 Salaries 6,24,000
2 Depreciation 23,310
3 Administrative Expenses 42,000
4 Repair & Maintenance 2,000
5 Rent, taxes, insurance 2,04,000
Total 8,95,310

(D) Contribution

Contribution = Sales – Variable Cost

= 37,80,000 – 19, 27,000
= 18,53,000

Therefore BEP = (Fixed Cost /Contribution) * 100

= (8, 95,310 /1853,000) * 100
=48%
BEP = Fixed Cost / (S.P-V.C) per dish,
8, 95,310 / 14.70 = 60905 rs.
 RETURN ON INVESTMENT

Year 1

ROI = Net Profit / Investment

= (5,35,425 / 6,00,000) * 100
= 89.23 %
Year 2

ROI = Net Profit / Investment

= (6,23,539 / 11,35,425) * 100
= 54.91 %
Year 3

ROI = Net Profit / Investment

= (6,30,512 / 17,58,964) * 100
= 35.84 %
 PROFIT & LOSS ACCOUNT
As on Year -1

Dr Cr
Expenses Amount Revenue Amount
Rest. Rest.
Raw Material 17,34,960 Sales 37,80,000
Utilities 1,99,200
Repair& Maintenance 2,000
Rent, Taxes, Insurance 2,04,000
Wages 6,000
Administrative 42,000
Depri. On machinery 9,360
Depri. On Furniture 13,950
Salaries 7,25,400
1/5 of Building 10,000
1/5 of preliminary Exp. 2,400
Advertisement Exp. 7,000
Total 29,56,270 Total 37,80,000
Tax (35% of 8,23,730) 2,88,305
Net Profit 5,35,425

37,80,000
 BALANCE SHEET
As on Year -1
Liabilities Amount Rs. Assets Amount Rs.
Capital 6,00,000 Plant & machinery 62,400
Less Dep. 9,360 53,040
From P & L Account 5,35,425 Furniture & Utensil 46,500
(Net profit)
Less Dep. 13,950 32,550
Un paid Tax 2,88,305 Building 50,000
Less Return off 10,000 40,000
Current Asset
Cash Balance 12,88,540
Miscellaneous Exp.
Preliminary Exp. 12,000
Less Return off 2,400 9,600

14,23,730 14,23,730
 PROFIT & LOSS ACCOUNT
As on Year -2
Dr Cr
Expenses Amount Revenue Amount
Rest. Rest.
Raw Material 23,12,126 Sales 43,20,000
Utilities 2,67,252 Interest Received from 63,000
bank
Repair& Maintenance 3,000
Rent, Taxes, Insurance 17,000
Wages 8,222
Administrative 45,000
Depri. On machinery 9360
Depri. On Furniture 13,950
Salaries 7,25,400
1/5 of Building 10,000
1/5 of preliminary Exp. 2,400
Advertisement Exp. 10,000
Total 34,23,710 Total 43,83,000
Tax (35% of 9,59,290) 3,35,751
Net Profit 6,23,539

43,83,000
 BALANCE SHEET

As on Year -2

Liabilities Amount Rs. Assets Amount Rs.

Capital 11,35,425 Fixed Assets
Plant & machinery 53,040
Less Dep. 9,360 43,680
From P & L Account 6,23,539 Furniture & Utensil 32,550
(Net profit)
Less Dep. 13,950 18,600
Un paid Tax 3,35,751 Building 40,000
Less Return off 10,000 30,000
Current Asset
Cash Balance 13,95,235
Cash At Bank 6,00,000
Miscellaneous Exp.
Preliminary Exp. 9,600
Less Return off 2,400 7,200

20,94,715 20,94,715
 PROFIT & LOSS ACCOUNT

As on Year -3

Dr Cr
Expenses Amount Revenue Amount
Rest. Rest.
Raw Material 28,90,158 Sales 49,50,000
Utilities 3,35,564 Interest Received From 1,14,627
Bank
Repair& Maintenance 4,000
Rent, Taxes, Insurance 17,000
Wages 10,278
Administrative 48,000
Dep. On machinery 9,360
Dep. On Furniture (A) 13,950
Dep. On Furniture (B) 16,500
Salaries 7,25,400
1/5 of Building 10,000
1/5 of preliminary Exp. 2,400
Advertisement Exp. 12,000
Total 40,94,610 Total 50,64,627
Tax (35% of 9,70,017) 3,39,505
Net Profit 6,30,512

50,64,627
 BALANCE SHEET
As on Year -3

Liabilities Amount Rs. Assets Amount Rs.

Capital 17,58,964 Fixed Assets
Plant & machinery 53,040
Less Dep. 9,360 34,320
From P & L Account 6,30,512 Furniture & Utensil (A) 18,600
(Net profit)
Less Dep. 13,950 4,650
Furniture & Utensil (B) 55000
Less Dep. 16,500 38,500
Un paid Tax 5,37,081 Building 30,000
Less Return off 10,000 20,000
Current Asset
Cash Balance 17,30,604
Cash At Bank 10,91,683
Miscellaneous Exp.
Preliminary Exp. 7,200
Less Return off 2,400 4,800

29,26,557 29,26,557
 ANNEXURE -1

COST OF PLANT & MACHINERY

Sr,No. Particular Nos. Cost per m/c Total value

1 Freezer 1 25,000 25,000
2 Water Cooler 1 15,000 15,000
3 Mixture 1 3,000 3,000
4 Gas Stove (with 1 5,000 5,000
connection)
Sub Total 48,000
Add 30% towards taxes 14,400
,insurance, etc
Grand Total 62,400

ANNEXURE -2

DEPRECIATION CALCULATION

Year 1

Particulars Percentage Yearly

Machinery @ 15% 9,360
Furniture, Utensils @ 30% 13,950
Total 23,310

Year 3

Particulars Percentage Yearly

Machinery @ 15% 9,360
Furniture, Utensils (A) @ 30% 13,950
Furniture, Utensils (A) @ 30% 16,500
Total 39,810
 ANNEXURE -3
COST OF PRODUCTION & PROFITABILITY
(At 90% capacity utilization)

Sr. No. PARICULARS Yearly

(A) Cost of Production

1 Raw Material 17,34,960

2 Power, Fuel, Water 1,87,200
3 Utilities 1,99,200
4 Repair & Maintenance 2,000
4 Rent, Taxes & Insurance 2,04,000
5 Wages 6,000
6 Salaries 7,25,800
7 Administrative Expenses 42,000
8 Depreciation 23,310
Total Production Cost Rs. 31,24,470
Sr. No. Particulars

(B) Income

1 Total Sales Income Rs.37,80,000

Total Annual income Rs. 37,80,000

(C) Gross Profit Rs.6,55,530
(D) Income Tax Rs.2,94,436
(E) Net Profit Rs.3,61,094
 ANNEXURE 4

Rate of Vegetables
Vegetables Rs./kg
Bean Pods 28
Brinjal 20
Cabbage 16
Carrot 20
Cauliflower 32
Chilly(green) 20
Coriander 40
Cucumber 20
Fenugreek 40
Garlic 30
Ginger 100
Green pea 50
Ladyfinger 25
Onion 16
Peas 50
Potato 10
Radish 20
Spinach 20
Tomato 15
Vetch 20

Other Items Rate

Buttermilk 10
Curd 25
Ghee 200
Rice 30
Mug Pulse 40
Tovar pulse 30
Besan 40
Salt 4
Sugar 22
Wheat Flour 15
Red chilly 10
Mustard 40
Green Termic 60
Edible Oil 50
Hing 20
 ANNEXURE 5
Sr.No. Particular Quantity Cost for 1 Quantity Cost for a
Required Day (Rs.) Required week (Rs.)
for 1 day for a week
1 Wheat Flour 20 Kg 300 140 Kg 2,100
2 Tuver Dal 15 Kg 520 135 Kg 3,640
3 Mustard 0.7 Kg 30 5 Kg 210
4 Garam Masala 0.42 Kg 65 3 Kg 455
5 Green Chilly 0.7 Kg 15 5 Kg 105
6 Coriander 1.4 Kg 46 10 Kg 322
7 Garlic 2.2 Kg 26 16 Kg 182
8 Ginger 0.7 Kg 72 5 Kg 504
9 Buttermilk 10(liter.) 100 70 (liter.) 700
10 Curd 7 Kg 150 50 Kg 1,050
11 Ghee 7 Kg 1072 50 Kg 7,504
12 Bason 2.8 Kg 115 20 Kg 805
13 Salt 1.4 Kg 15 10 Kg 105
14 Sugar 2.8 Kg 58 20 Kg 406
15 Red Chilly 3.5 Kg 235 25 Kg 1,645
16 Edible Oil 15 (liter.) 1080 105 (liter.) 7,560
17 Hing 1.5 tin 22 10 tin 154
18 Rice 11.5 Kg 515 80 Kg 3,605
19 Cucumber 2.8 Kg 58 20 Kg 406
20 Tomato 5 Kg 140 35 Kg 980
21 Gur 2 Kg 50 14 Kg 350
22 Lemon 0.7 Kg 15 5 Kg 105
23 Onion 2.8 kg 46 20 Kg 322
24 Potato 1.4 Kg 22 10 Kg 154
Total 4,864 34,048

The item in the following table require only one day in a week

Sr. No. Particular Quantity Required for 1 day Cost for 1 Day (Rs.)
1 Cabbage 5 Kg 80
2 Bean Pod 5 Kg 120
3 Brinjal 5 Kg 100
4 Cauliflower 5 Kg 140
5 Ladyfinger 5 Kg 110
6 Peas 5 Kg 235
7 Spinach 5 Kg 85
8 Vetch 5 Kg 100
Total 1,055

Menu of Radhe Canteen for lunch

Day Food items Rs./ dish
Monda Dal, Rice, One vegetable, 30
(cabbage), Salad,
Buttermilk, Chapatti, Gur,
one pulses
Tuesday Dal, Rice, One vegetable, 30
(bean pods), Salad, curd
Buttermilk, Chapatti, Gur,
one pulses
Wednesday Dal, Rice, One vegetable 30
(brinjal), Salad, curd
Buttermilk, Chapatti, Gur,
one pulses
Thursday Dal, Rice, One vegetable, 30
(cauliflower), Salad, curd
Buttermilk, Parothas, Gur,
one pulses
Friday Dal, Rice, One vegetable, 30
(Ladyfinger), Salad, curd
Buttermilk, Parothas, Gur,
one pulses
Saturday Dal, Rice, One vegetable, 30
(Onion & Potato), Salad,
curd Buttermilk, Chapatti,
Gur, one pulses
Sunday Dal, Rice, One 30
vegetable(Reddish), Salad,
curd Buttermilk, Chapatti,
Gur, one pulses

ANNEXURE 6
 ANNEXURE 7
Menu of Radhe Canteen for Dinner
Day Food items Rs./ dish
Monday Dal, Rice, One vegetable, 30
(peas), Salad, Buttermilk,
Chapatti, Gur, one pulses
Tuesday Dal, Rice, One vegetable, 30
(potato), Salad, curd
Buttermilk, Chapatti, Gur,
one pulses
Wednesday Curry, Rice, One vegetable 30
 (Spinach), Salad, curd
Buttermilk, Chapatti, Gur,
one pulses
Thursday Dal, Rice, One vegetable, 30
(cauliflower), Salad, curd
Buttermilk, Parothas, Gur,
one pulses
Friday Curry, Rice, One vegetable, 30
(Green pea), Salad, curd
Buttermilk, Parothas, Gur,
one pulses
Saturday Curry, Rice, One vegetable, 30
(Vetch), Salad, curd
Buttermilk, Chapatti, Gur,
one pulses
Sunday Dalfry, Rice, One 30
vegetable(tomato), Salad,
curd Buttermilk, Chapatti,
Gur, one pulses