CAMIS Final

India-Europe International Business School
BUSINESS PLAN ON
CAMIS PRIVATE LIMITED

We deliver quality
By Nitesh Gupta Roll. No. 20100808 MBA | Finance
Submitted to
MR. ANUP AWASTHI PROFESSOR ENTREPRENEURSHIP & SMALL BUSINESS MANAGEMENT
BUSINESS PLAN
2012

Contents
Contents ........................................................................................................................................................ 2 TIMELINE ....................................................................................................................................................... 3 PROJECT GANTT CHART ................................................................................................................................ 4 EXECUTIVE SUMMARY .................................................................................................................................. 5 VISION ........................................................................................................................................................... 6 MISSION ........................................................................................................................................................ 6 INDUSTRY ANALYSIS...................................................................................................................................... 7 BUSINESS IDEA ............................................................................................................................................ 21 SALES REVENUE STRUCTURE ...................................................................................................................... 22 HUMAN RESOURCE PLANNING ................................................................................................................... 23 SALARY STRUCTURE: ................................................................................................................................... 24 ORGANIZATION STRUCTURE ....................................................................................................................... 24 BUSINESS STRATEGY ................................................................................................................................... 25 MARKETING PLAN ....................................................................................................................................... 28 KEY MARKETS & SEGMENTATION ........................................................................................................... 28 MARKETING OBJECTIVES FOR THE FIRST YEAR ....................................................................................... 28 OBJECTIVE, STRATEGY & ACTION PLAN .................................................................................................. 29 SALES PLAN ............................................................................................................................................. 32 AGRO PROCESSING RELIEF MEASURES: ...................................................................................................... 34 FINANCIALS ................................................................................................................................................. 35 PROFIT & LOSS ACCOUNT ........................................................................................................................... 35 BALANCE SHEET .......................................................................................................................................... 37 CASH FLOW ................................................................................................................................................. 38 REFERENCES ................................................................................................................................................ 39
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TIMELINE
Project Timeline Business Plan Schedule
Week
Week 1
Task
Brainstorming on business idea, Preparing outline structure discussion with concerned faculty about business plan the the & the the
Deliverables
Finalising the Business plan idea
Week 2-4
Industry analysis and brainstorming about a food processing company Making the required research about the different aspects of a food processing company Buffer Week
Executive Summary, Vision, Mission, type of Company & Business Idea Marketing Plan, Basic Cost Structure & Revenue structure.
Week 5-6
Week 7 Week 9 Week 8
Estimating the financials for Financial statements for the the firm and projections for the next three years future Compilation of the data , Final report with Complete Discussions on the data information collected, Final Report and Conclusion
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PROJECT GANTT CHART

Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8
Finalising the Business plan idea

Executive Summary, Vision, Mission, type of Company & Business Idea Marketing Plan, Basic Cost Structure & Revenue structure. Financial statements for the next three years Compilation of the report Final Report Preparation
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BUSINESS PLAN
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EXECUTIVE SUMMARY
CAMIS is one of the pioneers in the processing of agricultural products, is currently within its first year of operation. As of 2012 the firm stands as the only company to offer such services. Since we are operating globally CAMIS faces economic forces like the fluctuating wealth of our clients as well as outside forces. Besides economic and competitive forces, CAMIS is also subject to legal and regulatory forces. We are a private limited company registered with the Indian Companies act 1956.. Our firm follows all laws regarding our business and hiring of employees. CAMIS target all the people who have the need of processed and good quality agricultural products. In the future, as per the financial stability of the company we will also provide transportation facilities to our clients. The SWOT analysis identifies the Strength, Weaknesses, Opportunities and Threats associated with CAMIS. These traits are compared against many economic, environmental, and social factors that could potentially affect the success of our company. The analysis also considers our competition and their potential direct impact on CAMIS. We heavily assess CAMIS operations and how our strengths and weaknesses relate to our operations. The Business Resources section of the plan specializes in explaining the financial and human resources available to the firm as well as the experience and expertise already accessible. Our financial resources, enumerated in this report primarily for short term concerns within three to five years, will come from cash on hand and potentially from discounting of bills. Human resources are split into skilled and unskilled divisions. Most of the funds used for training will be spent on the skilled divisions of management, where it is most needed. Each of our top three executives is extremely experienced and well regarded in the industry and play a key part in the success of our firm. The Business Strategy consists of a list of specific objectives followed by detailed plans of how to achieve these objectives. CAMIS have four main objectives: Cover a large market share within 3 years. Increase net income by at least 15% each year Expand our brand name and become recognized
To achieve these objectives, our strategy consists of:
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BUSINESS PLAN
Seasonal products: Medium price, Medium volume strategy, Medium Quality Regular Products: Low price, High volume strategy, High quality High awareness
2012
Detailed financial projections are illustrated in graph form in the Financial Projections and Budgets section of the business plan. Graphs measure the competitive advantage CAMIS has against the industry. In addition, we have also projected expected values for our income statement for 2013 & 2014. Controls and Evaluation show in detail how the outcome of our plan will be monitored and measured. We set performance standards and financial controls as goals that our company aspires to attain in the upcoming years. We also set a scale to monitor our procedures as well as a set standard to measure our results. Last, we talk about performance analysis and compared our company data to all other companies in the food processing industry. CAMIS We deliver quality
VISION
To produce a product that will maximize our customers satisfaction by giving them the possibility to create a better standard of living. A living backed with good quality processed agricultural products for the whole family
MISSION
By 2015 we will be one of the leading companies in the food processing industry for providing good quality processed agricultural products, also our brand will be among the valued brands in the country.
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INDUSTRY ANALYSIS
Basic structure of the FOOD PROCESSING INDUSTRY
The chart above describes the process i.e. the Entire Value Chain for a Private Entrepreneur from Demand Estimation to Consumption. Government i.e. Central as well as State government along with its agencies supports the farmer and processing units to encourage this sector. The Stages involved in the value chain are: 1. Market: In this stage, the Entrepreneur estimates the demand for crops and decides which crop to sow 2. Input: After deciding on specific crops, the entrepreneur ploughs the crop with the use of fertilizers, pesticides, nutrients and water to realize a good crop. 3. Pre Harvest: After a good crop has developed, Pre Harvest involves maintaining the crop till harvest with the use of Latest technology and Fertilizers. 4. Harvesting: It involves the process of separating a full grown crop for processing, packaging, transportation and finally for consumption.
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5. Post Harvesting: After Harvesting, the crop goes through a chain of processes to filter the crop on the basis of Quality and many other parameters. The crops thus chosen are packaged accordingly for safe transportation to the market. In case of perishable products it also requires to be processed for their preservation. 6. Transportation: It involves the physical movement of the crop and processed food from the farm to the actual Market. 7. Marketing: Marketing involves providing sales platform for the food products. Sometimes it is done by the producer himself. Government creates a market through setting up APMC Depots, online websites and also through trade exhibitions. 8. Market: Finally, the Chain gets completed when the crop reaches the market for consumption and the farmers as well as the processing units get the money out of it.
COUNTRY-WISE LEVEL OF PROCESSING
Country wise level of processing While India has an abundant supply of food, the food processing industry is still nascent: Despite these low volumes, the processed food industry is one of the largest industries in the country - it is ranked fifth in terms of production, consumption, export and expected growth. Processed food industry accounts for 13 per cent of the countrys exports and 6 per cent of total industrial investment. The food industry size is estimated at Rs.9100 billion and the food processing industry at Rs.350 billion. According to official data, India exported about 17.5 million tone of agri and processed foods worth Rs 31,870 Crore ($ 6639.58mn.) in FY08 against 10.9 million tone valued at Rs 21,805.9 Crore ($4361.2mn.) the previous year which shows growth of more than 45% in terms of value.
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CHALLENGES IN FOOD PROCESSING INDUSTRY Unprocessed foods are susceptible to spoilage by biochemical processes, microbial attack and infestation. The right post harvest practices such as good processing techniques, and proper packaging, transportation and storage (of even processed foods) can play a significant role in reducing spoilage and extending shelf life. The challenges in processing lie in retaining the nutritional value, flavor, aroma, and texture of foods, and presenting them in near natural form with added conveniences. Besides, processed foods need to be offered to the consumer in hygienic and attractive packaging, and at low incremental costs. The challenges for the preservation, distribution and processing sectors are diverse and demanding, and need to be addressed on several fronts to derive maximum market benefits. Presently, the organizations addressing the educational and R & D requirements are too few, and there is a pressing need for supplementing their efforts. In the emerging scenario, the Food Engineering professional needs to develop sufficient awareness and appreciation of the relevant principles of life sciences, and physical sciences, as well as of a wide variety of other topics including: nutrition, preservation and storage techniques, processing unit operations, bio-processing, waste management, distribution and supply chain management, food laws and regulations and so on. Besides, the professional needs to develop an appreciation of R&D and innovation in critical technology areas such as: newer or novel process development in preservation and storage techniques, rheology, colloids and dispersal systems, packaging-polymers and composites, sensors for detection and process control, bioprocess engineering etc.
OPPORTUNITIES IN FOOD PROCESSING INDUSTRY Diverse agro-climatic conditions lead to a wide-ranging and large raw material base suitable for food processing industries in India. Currently a very small percentage (less than 2%) of these is processed into value added products, leaves opportunity to explore in the sector. One of the biggest emerging markets, with more than 1 billion population and 250 million strong middle class sets a large consumer base within the country. India is the seventh largest country, with extensive administrative structure and independent judiciary, a sound financial & infrastructural network. Stable and flourishing democracy is also an opportunistic attribute of the country. Increasing literacy, rapid urbanization and rising per capita income resulting in rapid growth and changes in demand patterns. This is creating great opportunities for exploring the large hidden markets. An average Indian spends about 40% of household expenditure on food items. Demand for processed /convenience food is constantly increasing. Cheaper workforce availability can be effectively utilized to setup large low cost production bases for domestic and export markets. Liberalized policies with specific incentives for high priority food processing sector provide very favourable environment for investments and exports in the sector.
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DAIRY PRODUCTS, FRUITS AND VEGETABLES ARE THE MOST ATTRACTIVE SEGMENTS FOR INVESTMENTS:
Major Product segments in food processing sector. India is the leading producer of milk in the world, and produced about 108 MT in 2007 _ 37% of the produced milk is processed and 676 diary plants are registered with the government The major growing segment include- branded butter, cheese and ice cream and the total market is valued at INR 20.3 bn (USD 442 mn) and expected to grow at an average rate of ~13% Ultra Heated Treatment and flavored milk are other high growth market
Dairy products
Growth Rate 15%
Fruits & Vegetables
Globally, India is second and third largest producer of vegetables (100 MT) and fruits (50 MT) respectively _ India accounts for 8.4% of the worlds F&V production Less than 2% of total vegetables produced are processed commercially in India Share of organized sector in fruits processing is 48% and ~20% of processed F&V are exported _ Mango and its other products alone constitute 50% of the total F&V exports market. India has the largest livestock population (470 mn) globally About 5 mn tonnes of meat is produced per year in India Per head consumption of fresh and processed meat is as low as 1.5 kg in India against world average of 35.5 kg Majority of animals in India are not bred for meat, the processing percentage for meat is as follows: -Buffaloes (11%), Cattle (6%), Sheep (33%), Goat (38%) The annual poultry production in India is 450 mn broilers and 33 bn eggs growing at 20% and 16%
Growth Rate 20%
Meat & Poultry
Growth Rate 10%
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Packaged foods beverages and staples are restricted to urban areas characterized by high volumes and low margins India ranks third in fish production in the world Frozen shrimp contributes to 34.62% of exports in terms of volume and 63.5% in value India has about 369 freezing units with daily processing capacity of 10,226 tonnes and 499 frozen storage units with a capacity of 134,767 tonnes India has around 60,000 bakeries; 20,000 traditional food units The growing segments in packaged foods include _ Soups market is at a nascent stage and is valued at INR 644 mn (USD 14 mn) _ Confectionaries market pegged at INR 22.3 bn (USD 484.3 mn) growing at 5.7% _ Biscuit market is estimated to be INR 17.2 bn (USD 373.4 mn) and is growing at 7.5% _ Culinary products; tomato ketchups and jams at 18-20% annually India is the largest tea producer in the world accounting for 28% of global production and 5th largest coffee producer accounting for 4% of total production in the world There are 100 plants across India under aerated soft drinks segment Exports in soft drinks are valued at INR 7.2 bn (USD 156 mn) per annum Attracted FDI of more than INR USD 1 bn
Fisheries
Growth Rate 20%
Packaged foods
Growth Rate 8%
Beverages
Growth Rate 27%
Staples
India is the second largest wheat producer globally with an output of 70 MT valued at INR 9 bn (USD 195 mn) There are 10,000 pulse mills with 14 MT milling capacity per annum
Growth Rate 85%
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KEY SUCCESS FACTORS AND RISK FACTORS IN THE FOOD PROCESSING INDUSTRY
SEGMENTS
KEY SUCCESS FACTORS

Ability to establish forward and backward linkages through contract farming, cold chains, and a strong distribution network. Use of modern technology in F&V processing rather than manual methods Using hybrid seeds to improve yields Large number of innovative products and branding. Ability to increasing scale of output Wide product portfolio of high-value products such as yoghurt, sweets Ability to tap into export markets Developing a portfolio of milk-based products.
KEY RISK FACTORS

About 35% of agricultural produce is wasted due to poor cold chain linkages during storage and transportation. International trade rules and increasing protectionism in export markets. Poor performance of the agricultural/primary sector.
Fruits Vegetables
and
Dairy Products
Meat & Poultry
Low productivity in milk animals despite the largest bovine population (250 million) Lack of scale in the industry despite of success stories such as AMUL. Quality and hygiene is low in street-side wet markets imperfect slaughtering Ensuring quality and sustained branding. High supply chain costs as Ability to tap into export growth in the feed constitutes 60% of total value-added segment. broiler costs Relatively unregulated slaughter facilities to the extent of 50%. The country has only 3,600 slaughter houses, 9 modern abattoirs and 171 meat processing units, and a limited number of pork-processing units Primitive rearing techniques
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EMERGING BUSINESS MODELS

Backward Integration Everybody is well versed with the traditional methods of value chain in food processing. Looking at the dominance of the sector towards the growth of economy it has been considered priority sector amongst all. We can see the generic value chain of the food processing industry below.
Figure 16: Terminal Market Contract Farming Contract Farming is an agreement between the food processor (contractor), who is typically a large organized player, and the farmer, whereby the farmer is contracted to plant the contractors crop on his land. He also agrees to harvest and deliver to the contractor a quantum of produce, based upon anticipated yield and contracted acreage at a pre-agreed price. The food processor provides inputs in terms of technology and training to the farmer, to improve the yield and quality of the produce. This results in a win-win situation that generates a steady source of income for the farmer and eliminates supply shocks and assures good quality farm inputs which are crucial for the processor. The Government of India has been actively encouraging contract farming endeavors. The National Agricultural Policy envisages that private sector participation will be encouraged through contract farming and land leasing arrangements to allow accelerated technology transfer, capital inflow and assured market for crop production . Terminal Markets A Terminal market is a central site, often in a metropolitan area, that serves as an assembly and trading place for agricultural commodities. Here there are different options for disposing off the produce. It can either be sold to the end consumer, or to the processor, or packed for export, or even stored for disposal at a future date. It thus offers different options to farmers under a single roof. Typically, terminal markets operate on a hub and spoke model where the markets form the hubs, and are linked to different collection centers (spokes) that are located close to the production centers. The typical value chain structure for a terminal market, as well as the key activities and corresponding infrastructure requirements at each level, are depicted in the figure below:
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Figure 17: Terminal Market The Government of India is looking to promote terminal markets, as a means of integrating domestic produce with retail chains. There are plans to set up such markets in eight cities across five states, at a cost of US$ 131 million. The cities being considered are Mumbai, Nasik, Nagpur, Chandigarh, Rai, Patna, Bhopal and Kolkata. Global Farming The next step towards globalization comes from global farm lands. Food shortage and reducing level of arable land is encouraging countries to approach other territory for farm land. China government wants its agricultural firms to buy or lease farm lands in Africa or South America to bolster food security in their country. China has 40% of farmers across the globe but only 9% of agricultural land. More than 40% of arable land of Brazil is unused and china would like to take up this land for soyabean production. Similarly Libya is negotiating with Ukraine for growing wheat and Saudi Arabia is too looking for green pastures for their steady supply of food & livestock supplies. Food Parks Food Parks are comprehensive industrial estates for food-processing units where the industries would have the provision of common facilities like cold storage, cold chain, effluent treatment plant, warehousing, power connection, water facilities, sewage etc. The creation of these common infrastructures would benefit the individual units particularly the small and medium scale units, because these are expensive to be set up by any single individual unit. Therefore a common park with all the infrastructures would help in the growth of this industry. The ministry of food processing industries has envisaged an initial investment of Rs 120 Crore (Rs 1.2 billion) for setting up the common infrastructure in a park. It is of the view that by providing a grant of Rs 1,500 Crore (Rs 15 billion) for 30 parks, Rs 50 Crore (Rs 500 million) for
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each, the private sector would be encouraged to invest up to Rs 9,000 Crore (Rs 90 billion) in various parks across the country.
GROWTH DRIVERS FOR FOOD PROCESSING INDUSTRY

Changing Lifestyle As far as the processed food market is concerned, Indian households are closely knit and the percentage of nuclear families and working women is very low. Therefore, while the market itself is one of the largest in the world, the penetration of packaged and branded products is abysmally low. People prefer homemade or fresh products, which are cheaper than branded products. However, over the last couple of years, private players have started taking enormous interest in the sector, with many MNC's already testing the waters. Their efforts have been aided by the fact that urban India is showing a marked shift towards ready-to-eat food: With urban incomes increasing and urban consumers squeezed for time, they are slowly demanding more of the products they consume. Also, the hygiene factor is facilitating growth. With 200 million people expected to shift to processed and packaged food by 2010, this presents an opportunity for makers of branded products like HLL, ITC, Nestle to convert potential consumers into patrons on as big a scale as never before. Large share of wallet: Food forms the largest component of the total consumption expenditure in India accounting for as much as 51%. This is highest compared to 9.7% for an average American person and 15% for both Japanese and British. Though with rising income, the share would go down, but would increase in absolute terms. Multi-national companies such as Coca- Cola, PepsiCo, Britannia, Danone, Nestle, Cadbury, Heinz and Perfettiae have made their presence felt in India. Indian majors like HUL, ITC, Dabur too have lined up investments in this segment. Growth in Retail Although organized retail is around 5 % of the total market, it is expected to be seen 35-40% in next 10 years. The annual growth of the retail market in India is expected to be around 8 per cent. Indian market has become the most lucrative market for retail investment in the world. The great Indian consumer market is still going strong. Existing middle class with increasing share of wallet, rapid urbanization, increase in the number of working women, large number of working young population, changing attitudes, tastes and lifestyle, globalization , indulgence and convenience aspects are triggering the retail food industry which in turn will a great boost to the food processing industry. This also attracts global retail giants like Wal-Mart, Tesco, Carrefour SA, Metro AG etc. to enter the Indian markets. With increasing number of shelf space more and more branded and processed food is finding its way in retail stores. Industry estimates the total retail stock in India stands at 34.8 million sq ft. Another 62.6 million sq ft of
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mall space is either proposed or under various stages of construction in the next 2-3 years; only 35% of this supply is coming in Mumbai and Delhi. It is expected that the share of the two cities to fall from the current 72% of the total stock to 49% by end of 2011. This will enable retailers to plan at increasing their penetration into the Tier II and III markets, which have lower operating and rental costs, and are relatively untapped. With a sizeable amount of supply in pipeline, the retailers and developers would shift the focus of Indian retail market from lifestyle goods to value retailing. FMCG and food retailing is likely to be the least affected in this downturn and some activity is expected in this sector. Food Retail: Food retail has surpassed the dominating apparel and accessories sector. Contrary to the belief that fashion is the largest segment of organized retail in India, food & beverages is the major segment, worth Rs 8,97,000 crore. Growing at the rate of 30%, the Indian food retail is going to be and no doubt is the major driving force for the retail industry. The percentage of income spent in households will drive growth in the food market. Food accounts for the largest share of consumer spending. Food and food products account for about 50% of the value of final private consumption. This share is significantly higher compared to developed economies, where food and food products account for about 20% of consumer spending. Currently, the retail food sector is Rs.3500 billion and is expected to rise to Rs. 7500 billion by 2025. Food has the largest consumption in the Indian economy and will remain the single largest category. Government Initiatives The government has taken steps to provide financial assistance for setting up and modernizing food processing units, creation of infrastructure, and support for R&D and human resource development in addition to other promotional measures to encourage the growth of the processed food sector. The government has set a vision 2015, for the sector which includes: Promoting a dynamic food processing industry Enhancing competitiveness in domestic and international market Making sector attractive for both domestic and foreign market Achieving integration of food processing infrastructure from farm to market It also has following specific targets: Level of processing of perishables from 6% to 20% Value addition from 20% to 35% Share in global food trade from 1.5% to 3% by 2015 In order to achieve the vision, the government has taken following steps: Priority area: The Government of India has identified the food processing sector as a high priority area and has given a number of fiscal relief and incentives to encourage commercialization and value addition to agricultural produce. FDI: Automatic investment approval up to 100% foreign equity has been allowed for larger part of the food-processing sector except for malted food, alcoholic beverages and those reserved for small-scale industries (SSI). 24% foreign equity has been permitted in small-scale sector. Foreign investments are allowed in SSI reserved items under an export obligation in selected items.
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Licenses: The Indian government has abolished licensing for almost all food and agroprocessing industries except for some items like alcohol, cane sugar, hydrogenated animal fats and oils and items reserved for the exclusive manufacture in the small scale industry (SSI) sector. This has resulted in a boom in the FMCG market through market expansion and greater product opportunities. Taxes: To further aid the segment, the government has announced a liberal corporate tax policy for export and domestic earnings. Income tax rebate has been allowed (100% of profits for five years and 25% of profits for the next five years) for setting up of new agro-processing industries to process and package fruits and vegetables (F&V). Export earnings are exempted from corporate tax. Various states governments like Himachal Pradesh, Uttaranchal and Jammu & Kashmir have encouraged companies to set up manufacturing facilities in their regions through a package of fiscal incentives. The move towards uniform VAT has also been considered. Excise and custom duties: Quantity restrictions on all food products have been removed. Peak rate of customs duty has been reduced from 30% to 25% (excluding agricultural and dairy products) and duty structure on designated items has been rationalized. The import of food processing machinery is allowed freely with low levels of duties. Import of capital goods for exports of agricultural products and their value added variants under the Export Promotion Capital Goods (EPCG) is allowed duty-free and Foreign Technology Agreement within norms has been made automatic. This opens up huge opportunities for large investments in food and food processing industries in different fields including up gradation of technologies, improvement of skills with installation of modern machinery and equipment, especially in areas of canning, dairy plants, specialty processing. Food laws: Consumer protection against adulterated food has been brought to the fore by the Prevention of Food Adulteration Act (PFA), 1954, which applies to domestic and imported food commodities and encompasses food colour and preservatives, pesticide residues, packaging, labeling and regulation of sales. Food parks: In a bid to boost the food sector, the Government is planning to set up agri zones and mega food parks. 30 such mega parks are coming up across the country in various cities to attract Foreign Direct Investment (FDI) in the food processing sector. Each food park will have a cold storage facility, apart from facilities for sorting, grading, food processing, packaging and quality control and R&D laboratories, among other things. The government has already identified five locations in Maharashtra, Andhra Pradesh, Punjab and Jharkhand and one in the North- East region. It is also planning to set up 30 food parks across the country.
MAJOR INVESTMENTS IN FOOD PROCESSING INDUSTRY

Private investment has been one of the key drivers for growth of the Indian food industry. As we know food processing industry has been allowed 100 % FDI it has shown substantial growth which can be observed in the chart: Industry estimates the total amount of investments in the food processing sector in the pipeline for the next three years is about Rs. 1,150 billion. The government has received around 40 expressions of interest (EoI) for the setting up of 10 mega food parks (MFPs) with an
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investment of US$ 514.37 million. In August 2008, the first chocolate academy in India was opened by Swiss confectioner Barry Callebaut, making its fifth foray into the Asia market. South Korean confectionery giant, Lotte Group, also has plans to set up a subsidiary in India. Belgian brewing giant, InBev, has announced increased expansion in India, with a focus on the beer market. Through its recent acquisition of US brewing giant Anheuser-Busch (A-B), the company now also owns A-B's Indian subsidiary, Crown Beers India. Italian confectionery company, Ferrero SpA, has announced plans to invest US$ 35 million for setting up a mint manufacturing plant in Maharashtra. Conglomerate Reliance Industries Ltd has invested US$ 1.25 billion in a dairy project. In August 2008, Reliance Industries was reported to be mulling a partnership with UK-based supply chain solutions provider, Wincanton, for its efforts focused on Indias mass grocery retail (MGR) sector. Dairy major and ice cream specialist, Amul Dairy, has announced plans to enter India's US$ 500 million snack food market. Texas Chicken, the chicken fast-food brand of the US-based Church's Chicken, has already opened its first outlet in Hyderabad and plans to open at least 300 outlets in India over the next 10 years. The world's third largest pizza chain, Papa John's, plans to open 100 outlets in different parts of the country with an investment of US$ 51 million. Fast-food chain McDonalds is pumping in US$ 83.4 million on increasing its footprint in India. ITC is planning to set up a world-class processing infrastructure in Rajasthan for an integrated 'cleaning-cum-sorting' facility for spices like cumin, coriander and pepper. Moreover, ITC is also planning investments to automate the different operations in its supply chain. It is planning to set up a pepper garbling and steam-washing facility in Kerala, apart from a 'blended spices' facility over the next two years. Sapat International, a Mumbai-based tea company, is reportedly in talks with EPIC, a private equity firm in the UK, for the acquisition of its stake in Whittard, an upmarket tea and coffee retailer in the UK. France-based Belvedere Group, which is the worlds second-largest vodka producer, is planning to enter India via the travel retail channel.
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BUSINESS PLAN EMERGING TRENDS IN THE FOOD PROCESSING SECTOR
2012
Emerging trends in the food processing sector

The food processing sector is highly fragmented industry, it widely comprises of the following sub-segments: fruits and vegetables, milk and milk products, beer and alcoholic beverages, meat and poultry, marine products, grain processing, packaged or convenience food and packaged drinks. A huge number of entrepreneurs in this industry are small in terms of their production and operations, and are largely concentrated in the unorganized segment. This segment accounts for more than 70% of the output in terms of volume and 50% in terms of value. Though the organized sector seems comparatively small, it is growing at a much faster pace.
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Figure 19: Food processing share in manufacturing
SWOT ANALYSIS OF FOOD PROCESSING INDUSTRY

Strengths Abundant availability of raw material Priority sector status for agro-processing given by the central Government Vast network of manufacturing facilities all over the country Vast domestic market Weaknesses Low availability of adequate infrastructural facilities Lack of adequate quality control and testing methods as per international standards Inefficient supply chain due to a large number of intermediaries High requirement of working capital. Inadequately developed linkages between R&D labs and industry. Seasonality of raw material Opportunities Large crop and material base offering a vast potential for agro processing activities Setting of SEZ/AEZ and food parks for providing added incentive to develop greenfield projects Rising income levels and changing consumption patterns Favorable demographic profile and changing lifestyles Integration of development in contemporary technologies such as electronics, material science, bio-technology etc. offer vast scope for rapid improvement and progress Opening of global markets Threats Affordability and cultural preferences of fresh food High inventory carrying cost High taxation High packaging cost
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BUSINESS IDEA
CAMIS will create the following physical infrastructure to facilitate the farmers to semi process their products, these activities will be grading, sorting and storage.
Infrastructure facilities consist of: Processing and grading facilities for farm produce Warehousing for fresh farm produce and semi processed farm products Cold storage for fresh farm produce Highly technologically equipped ecommerce system that enables the farmers to connect to the market place CAMIS scope of work is to carry out the back end work like sorting, grading, storing etc. but not selling the products directly
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SALES REVENUE STRUCTURE
Farmers
CAMIS would source information about agricultural products and post them on its website. The company would also provide storage facility and would charge them accordingly
Sorting
Grading the farm produce at the time of delivery Sending the materials to be processed further
Storing products in their respective sections
Storage
Assessing the orders from the clients and processing the produce
Processin Dispatching the materials to the clients and distributors g
Packaging the Vegetable and other produce to increase their life and maintain quality
Packaging
To Clients (Wholesellers, Retailers & Processors
Continuous communication for feedback and improvements Special teams to suggest improvements to the client
REVENUE MODEL Rent for storage from the farmers and the clients
Processing fees (as per the rates fixed) Commission from other activities such as transportation, loading & unloading, Loan assistance, irrigation facilities, etc. Membership fees from the farmers for maintaining their database.
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HUMAN RESOURCE PLANNING

Recruiters Temporary contracted employees Outsourcing
At first, our company will have enough individuals to launch the business. However it will become imperative over time to increase our employment force to accommodate the needs of the growing organization. CAMIS can look towards recruiters who will be able to provide us with talented and experienced employees. It is also possible to hire temporary contracted employees on a need-based basis. Eventually, when CAMIS has grown and become more financially powerful, we may be able to outsource our technical & account handling jobs overseas to places like China or US. We look to keep costs as low as possible and receive a higher return. The intake of raw material is a relatively semi-skilled process, so therefore it will not be necessary to heavily train our employees, thereby keeping costs low. In the management positions, however, where expertise is the key to the success of the business, we will not hesitate to fully train our staff to most effectively manage the organization. This training will be funded by the excess cash we plan to keep on hand in case of an emergency. Fortunately, our core top management team will be comprised of three of the most successful, respected individuals in the industry. Our CFO, will control financial projections and works closely with other top management to develop and maintain a long term strategy for the organization. The CEO is the general overseer of the company who will delegate tasks as necessary. The CEO will also constantly analyze the firms situation in the industry plus the firms past experiences in order to attain a full perspective of where our firm stands. She/he is also a key player in the firms business strategy development and sets objectives crucial to success. With years of combined experience between our three top executives, we are confident that our company is inevitably bound for success. CAMIS would recruit mostly the female employees from the rural areas from which it sources the agricultural produce. In order to the provide education about the right crop and create a strategic vendorship with the farmers for long term supply of the produce. Also a total number of food quality experts will be employed to ensure the quality of the produce and to do the grading process.
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BUSINESS PLAN SALARY STRUCTURE:

Position Number Salary per head Yearly CEO 1 90000 1,080,000 CFO 1 75000 900,000 Manager 20 34000 8,160,000 Quality Experts 100 22000 26,400,000 Salesman 30 15000 5,400,000 Junior level employees 100 8000 9,600,000 Labour 400 5000 24,000,000 Administration 60 6000 4,320,000 Peon & Watchmen 30 4000 1,440,000 Total 742 81,300,000
2012
ORGANIZATION STRUCTURE
CEO
CFO
MANAGER
QUALITY EXPERTS
SALESMAN
JUNIOR LEVEL EMPLOYEES
ADMINISTRATION
PEON & WATCHMAN
LABOUR
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BUSINESS PLAN
2012
BUSINESS STRATEGY
The Business Strategy consists of a list of specific objectives followed by detailed plans of how to achieve these objectives. CAMIS have four main objectives: Cover a large market share within 3 years. Increase net income by at least 15% each year Expand our brand name and become recognized Our first objective is to increase market share. The market currently calls a large amount of processed foods which are ready to be used for further production, so catering to a large chunk of needs would fetch us a high market share. Attaining 100% of the market share would be our first goal for the first year. By the second year, we hope to have a proper system in place that would enable us to maintain at least 95% of the market share. Our second objective is to increase our net income, otherwise known as profit after tax. Our sales revenue for the first year will be Rs. 60 Lakhs Approx. and we hope to increase this amount by at least (15%) in the first year. As years go on, we plan on our revenue increasing in larger and larger increments. By our second year, we hope this value has increased by at least Rs.10 Lakhs. Similarly, for our net income, we hope it will also continue to expand. Right now, we stand at the initial stage and have a negative cash flow.. By the third year, this amount should rise to approximately Rs. 15 lakhs. By the fifth year, the net income should be 20 lakhs. By the eighth year, we should be bringing in a whopping 40 lakhs. Our last objective is for our company to successfully establish a brand name. To do so, we will be distributing much of our funds to advertising and public relations, as needed. More money will also be spent on brand recognition as well as quality so that our services or value additions are known as best in the industry.
Key Strategy for Using Capabilities and Resources 1. Seasonal Produce: medium price, medium volume strategy 2. Regular produce: low price, high volume strategy 3. High Awareness a. High Advertising b. Medium-Low Public Relations c. Medium Brand Name Awareness d. Medium Quality
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BUSINESS PLAN
2012
Based on our goals and objectives, CAMIS plans on using a medium volume, medium price strategy for the seasonal produce. This strategy entails raising price 1%-15% every year for the seasonal produce until the launch of a new items being produced. Currently, our value addition process costs approximately Rs. 11. For the first year, were taking a daring step and raising it to 15 for 2012. Scenario Reports say that customers have medium sensitivity to price changes in seasonal produce so a change of Rs. 4 should not decrease revenue by too much. With a higher price, people will need better reasons to continue using the service. As a part of our new strategy to gain more and lose less, we plan to increase spending in Magazine Advertising and Television by about Rs 100,000. Every year, we will increase the total amount spent on advertising by small increments as our price increases. These increments will range from Rs.10,000 to Rs.50,000. To counter our extreme increases in Advertising, we will decrease the amount of money we invest in Public Relations since the Scenario Reports tell us that Seasonal produce requires High Advertising, but Low PR. Our production volume for the first year will remain at 277,000 kgs. Production volume will change depending on the price set for the product as well as customer reaction in previous year to varying changes in price, advertising, capacity, quality, etc. When we reach the regular market, we will adopt a lower price, higher volume strategy based on the market for regular produce. Our reason for servicing the regular produce market is that regular and seasonal produce requires many of the same resources. For example, both need high Advertising and low Public Relations. Both also require more television and magazine advertising as opposed to newspaper. It is also easier to focus on regular and seasonal markets since the distribution of produce to the clients will be done using a common transportation system. In order to have enough cash and capacity to introduce a new produce, we will most likely cut back on the amount of spending and production volume of seasonal produce. However, to counter the loss in profit due to fewer items processed, we will most likely increase the price of processing seasonal produce by small increments of 1% per year. CAMIS will be providing a database of all the items on its website (www.camis.com). This website will give all the information to the clients regarding the agricultural produce available with CAMIS and the farmers associated with CAMIS. The data will be fed in by executives who will be from the company for the first 3 months. These executives will be recruited mostly from the semi urban areas and shift to a new rural area after every 3 months. Along with this he will also train a person from the rural area to feed in the data after 3 months. It is evident that in 3 months a minimum 10th passed rural person will be able to work on a user friendly system. This will be a strategy of CAMIS in order to involve the rural people and make them a part of the system. For the first year of our food processing system, we also plan on processing a small to medium amount of the items to test the market and see how well it is accepted. Advertising expenditures will rise, but Public Relations spending will be kept low. If the launch of our new process is successful, we will gradually increase capacity to process more of regular produce and reach our goal of having a low price but high volume for the produce.
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BUSINESS PLAN
2012
We will also use high advertising to increase service and brand awareness. This increase in awareness can in turn help increase profit and revenue. Another tactic our firm plans to utilize is a gradual increase in quality. Every year, we will allot money to increase the quality of our produce, which also goes to help increase our brand name awareness, and thus our general service awareness. According to the information from our SWOT Analysis, it seems our strengths outweigh our weaknesses. The dedication and talent of our team will pull through in the long run. Although we may spend more time and money developing the product, our high quality earns us a better name with the customers. We are trying to become a recognized company after all. In addition, even if our team is met by time constraints, it is possible to still work together efficiently. The team communicates frequently through the internet and via phone so that information is transferred and work is done. Because of our devotion, this strength creates many new opportunities for us in the future. It opens doors to innovation and creation and focuses us on what is important. Our weakness could also become a potential strength because working apart; we can get separate jobs accomplished instead of working together on one problem for a long period of time. We focus on efficiency and quality, which is why we believe our strategy will be the strongest in the long run. Our strategy hopes to take advantage of our opportunities which include advocating health care, creating innovative and new services, and introducing new ways to improve quality. When we advocate healthcare, more people will be motivated to use best of the best agricultural products. The launch of our process of regular produce would be a new and innovative product for the future which we hope will be successful. CAMIS also plan to introduce new technology and hire technicians in order to increase the quality and safety of our process. The ultimate goal of our business strategy is to capitalize on our strengths, convert our weaknesses into strengths, exploit potential opportunities, and defer harmful threats. By doing this CAMIS will become one of the strongest firms in the industry. CAMIS will also be providing the following services: Providing warehouse facilities for farmers as well as the clients Loans facilities for the farmers by tying up with banks Equipment assistance for the farmers Assistance for the development of Irrigation facilities Single window to all companies huge customer base SMS Alerts Weather, Market rates & Right grains Database of farmers in relation to crop
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BUSINESS PLAN
2012
MARKETING PLAN
KEY MARKETS & SEGMENTATION
All the seven items will be marketed through the CAMIS website. Since we are not involved in sales but in only supplying the agricultural produce to the clients CAMIS will make sure that it provides the best service possible to its clients. CAMIS will develop a mechanism wherein the shortage of items for the client to a minimum transportation level will automatically be delivered to the client. The list of potential CAMIS clients are given below: Retail Giants (Reliance fresh, Future group, etc) Hotels & Restaurants Food chains FMCG companies Export companies Wholesalers
MARKETING OBJECTIVES FOR THE FIRST YEAR

Create brand awareness about CAMIS and its items at the PAN India level, by offering better services and through advertising Supply 500 tons approx. of agricultural produce to the clients which will include all the seven items and any extra items if included.
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BUSINESS PLAN
2012
OBJECTIVE, STRATEGY & ACTION PLAN
Objective Strategy Action plan
Create brand awareness about CAMIS and its items at the PAN India level, by offering better services and through advertising Supply 500 tons approx. of agricultural produce to the clients which will include all the seven items and any extra items if included.
Build the CAMIS brand using the 360 degree Integrated Marketing Approach Target the major clients in the FP industry to deal in large volumes
Create awareness and Communicate positioning through ATL,BTL and TTL activities
Stress more on the quality of the services and timely delivery. Offer incentive if needed but only for a short term
STRATEGY 1. Build the CAMIS brand using the 360 degree Integrated Marketing Approach: Distribution: Transportation of goods to the right client at the right time will be out prime focus Trade Focus: During the initial stage a lot of discounts will be offered to the customer in order to engage the client. Also branding will also be done through word of mouth. Awareness: Since CAMIS is being targeting both the individual and the business buyers it will indulge in the BTL, ATL & TTL activities. Visibility: Hoardings, Banners and a lot of outdoor activities will also done to increase the visibility
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BUSINESS PLAN
2012
Trial Incentives: Competitive introductory consumers prices without compromising with brand image and positioning. Sampling: Regular sampling activities at on demand selling will be directly delivered to consumers is key. Repurchase and Loyalty: Free gifts, building good consumer understanding and their preferential taste for the CAMIS brand also discounts for getting additional customers on board. For promotions and better visibility CAMIS will do the following things: Distinctive logo: CAMIS will use it on all your marketing materials that will serve as a graphic symbol of our brand. We will be creating an expensive logo because this is one of the most important symbols of our business as a whole. Company website: CAMIS will have its own website (www.camis.com) which will also promote the brand. We will be directly linking it the major search engines such as Google, yahoo, etc. This will attract our potential customers to our websites. Going online is a good strategy of going digital which forms an important part of 360 degree marketing approach. Public relations: Is the most cost-effective b-to-b marketing tool for reaching large audiences. CAMIS will conduct press release activities on a large scale in order to create awareness about the service offered.
Direct mail: CAMIS will be sending direct mails to the potential customers because standard envelopes often get trashed, but simple postcards will typically get scanned by the recipient, and "lumpy mail" (packages with some souvenir object in them) will usually get opened. One of the best uses of direct mail is to generate interest among potential customers in visiting our website, where visitors will be answering a simple question and the click on the answer will be directly linked to the CAMIS website to know their interests.
LOCAL MARKETING APPROACH
Newspaper advertising: CAMIS will give newspaper ads which can be effective in building name awareness and generating some inquiries from prospects. Since as the per the study giving one ad will be worthless so CAMIS will issue a series of 4 to 12, which will build interest and desire on the part of potential customers. B-to-B networking - In India the Federation of Indian the Chamber of Commerce has a wide variety of events year-round that will let us meet and talk with hundreds of people, some of
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BUSINESS PLAN
2012
whom are potential customers and some of whom may serve as referral sources. Also a mix of professional organizations provides additional opportunities to get to know lots of people and pass out plenty of business cards. Radio and TV: CAMIS will advertise through radio and TV that will create awareness among the local public. Majority of our advertising will be through the cable and DTH which will let us select a cluster of channels that are more likely to be viewed by majority of people than some others.
NATIONAL MARKETING APPROACH
For national marketing approach CAMIS will focus on the following two mediums: Trade magazines Trade shows
2. Target the major clients in the Food Processing industry to deal in large volumes: CAMIS will mostly focus on the large players in the food processing industry such as the Future Group, Walmart, Tesco, Aditya Birla Group, etc. In order to increase the trade and reduce the gestation period we have to deal in large volumes. For this we have to be consistent with our quality of the supply and the services offered. For this we will concentrate on the economies of scale in order to obtain cost leadership also a differentiation strategy of distribution which we strive to achieve with the help of a better distribution system.
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BUSINESS PLAN
2012
SALES PLAN
Items Tonnes Volume (in kilos) value /kg In Value Proces sing Grad ing Packa ging Tot al cos t 28 % 28 % 44 % 28 % 28 % 28 % 28 % Total Proces sing cost/ki lo 2.24 Total revenue
Maize
66800 66,800,0 00
8 534,400, 000 30 66,800,0 00 2,004,00 0,000 43 66,800,0 00 2,872,40 0,000 10 66,800,0 00 668,000, 000 12 66,800,0 00 801,600, 000 15 80,160,0 00 1,202,40 0,000 10 80,160,0 00 801,600, 000 8,884,40 0,000
10%
8%
10%
149,632, 000 561,120, 000 1,263,85 6,000 187,040, 000 224,448, 000 336,672, 000 224,448, 000 2,947,21 6,000
Groundn ut Seasame Seed Jowar
66800
10%
8%
10%
8.40
66800
15%
11%
18%
18.92
66800
10%
8%
10%
2.80
Bajra
66800
10%
8%
10%
3.36
Soyabea n seeds Millets
80160
10%
8%
10%
4.20
80160
10%
8%
10%
2.80 42.72
Total Yearly Monthly
494320 494,320, 000 41193.3 3333 1373.11 1111 41,193,3 33.33 1,373,11 1.11
Daily
Salesman will carry out marketing and merchandising functions as and when needed, they will also be responsible for gathering market intelligence on regular basis. They will also be responsible for collection & will work on salary + incentive system.
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BUSINESS PLAN
2012
Salesman will be trained on brands related marketing issues, merchandising techniques and will be equipped with POSM, trade leaflets and brochures. Salesman will send their daily sales report to the marketing and sales responsible and will report directly to him. Sales managers will procure sales order from the customers, email the same to the marketing and sales responsible, who will further forward the delivery instructions to the logistic company, obtain the delivery date and revert back to the sales manager, who will intimate the customer about his goods receiving date. STRATEGIES: 1. Exceed the quota. Send no less than 50 letters of introduction to new prospects each week. Make no less than 50 cold calls of introduction to new prospects each week. Make no less than 20 face-to-face contacts with new prospects each week. Create no less than 10 proposals each week. Make no less than five presentations each week.
2. Obtain referrals from all my new customers. Within 30 days of delivering the product, the salesman will ask each of new customers for at least three names and phone numbers of someone they personally know who may have a use for our products. 3. Sales lead generation using relationship marketing The entire salesmans will develop longer-term relationships with customers rather than individual transactions. 4. Sale lead generation using search engine optimization and Internet marketing strategies Salesman will also make use of digital marketing tool to create sales lead generation program that includes search engine optimization (SEO)/Internet marketing strategies that will attract prospects at the beginning of their buying cycle.
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BUSINESS PLAN
SALES FORCE Profile of the Salesman:
2012
Must be fluent in English and good in communication and flair for sales. Good working knowledge of MS office, university graduate with at least 4 years of sales experience in agricultural products. Sales Managers will be entitled to monthly and yearly sales incentives.
Deliverables for Sales Manager: Must meet the monthly individual product target as well as the total monthly group product target and yearly target. Deliverables for marketing and sales responsible: Minimum business of 1 cr/month/salesman Training the sales managers Business Developments Preparing future growth strategies
AGRO PROCESSING RELIEF MEASURES:

As per the latest announcements from the Ministry of Food Processing in India full exemption from excise duty is being extended to, 1. The preservation, storage, transports or processing of agricultural, horticultural, dairy, poultry, apiaries, aquatic and marine produce. 2. Conveyor belt systems for use in cold storage for the preservation, storage, transport or processing of agricultural, horticultural, dairy, poultry, apiary, aquatic and marine produce and in mandis & warehouses for storage of food grains and sugar. 3. Also, Income tax relief: Income Tax rebate is allowed, 100% of profits for 5 years and 25% of profits for the next 5 years, for new industries to process, preserve and package fruits and vegetables.
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BUSINESS PLAN
2012
FINANCIALS
PROFIT & LOSS ACCOUNT
Financials Sales Revenue Other Income Excise Duty Net Sales Power & Fuel Cost Other Processing Expenses Marketing Admin selling Miscellaneous Expenses Employee Cost Total Cost Operating Profit PBDIT Interest PBDT Depreciation Profit Before Tax Tax Reported Net Profit
2012
98,24,05,333 1,89,00,00,000 2,87,24,05,333 -2,59,96,069 -2,35,77,728 -14,14,66,368 -9,43,10,912 -9,43,10,912 -2,35,77,728 -8,13,00,000 -48,45,39,717 49,78,65,617 2,38,78,65,617 -1,25,19,33,964 1,13,59,31,653 -13,57,20,000 1,00,02,11,653 1,00,02,11,653
2013
3,38,92,98,400 2,49,48,00,000 5,88,40,98,400 -5,01,92,138 -5,18,71,002 -15,56,13,005 -10,37,42,003 -10,37,42,003 -2,59,35,501 -8,94,30,000 -58,05,25,651 2,80,87,72,749 5,30,35,72,749 -2,69,56,66,347 2,60,79,06,402 -13,57,20,000 2,47,21,86,402 2,47,21,86,402
2014
3,89,76,93,160 2,74,42,80,000 6,64,19,73,160 -32,62,48,894 -5,70,58,102 -17,11,74,305 -11,41,16,204 -11,41,16,204 -2,85,29,051 -9,83,73,000 -90,96,15,759 2,98,80,77,401 5,73,23,57,401 5,73,23,57,401 -13,57,20,000 5,86,80,77,401 5,86,80,77,401
Sales Revenue At an approximate CAMIS will be sourcing around 7 kinds of agricultural produce from the 400 farmers of 20 villages (200 farmers per village). All the agricultural produce will be processed, graded, and packed as per the specifications of the customer. The estimated figures are as follows. For further details refer to the excel sheet. Total produce of farmers yearly Average processing cost Total estimated revenue yearly 494320 (Tonnes) Rs. 6.10 2,947,216,000
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BUSINESS PLAN
2012
It will take around 6 months to get the setup ready and start production. Also a 2 month credit is also allowed for the customers. Hence the the cash inflow starts from the month of September. Other Income Since CAMIS will also be providing warehousing facilities to the farmers and the clients. It has procured a land of 630000 sq.ft in the semi urban area costing of Rs.600/sq.ft. Assuming that at any particular time the warehouse will be occupied to the tune of 40% of the capacity. CAMIS will charge Rs. 750/sq.ft from its customers. The warehouse will take approximately 2 months to be operational. Power & Fuel Cost Power & fuel cost is assumed at 10% of the total operating cost. Other Processing Expenses Processing expenses are assumed to be at 2% of the monthly sales revenue Marketing Marketing costs are assumed to be at 6% of the average yearly sales revenue Admin Admin costs are assumed to be at 4% of the monthly sales revenue Selling Selling costs are assumed to be at 4% of the monthly sales revenue Miscellaneous Expenses Miscellaneous expenses to be at 1% of the monthly sales revenue Employee Cost Employees are paid as fixed monthly salaries and laborers are given their fixed amount of wages. (Calculations are given in the excel sheet) Interest Interest will be paid after 2 months when the cash inflow from the warehousing facility begins.
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BUSINESS PLAN
Depreciation Depreciation is charged at 10% of the total assets except land.
2012
BALANCE SHEET
Balance Sheet Sources of funds: Amount in Rs. Bank Loan 1,18,22,65,186 Equity 50,66,85,080 TOTAL LIABILITIES 1,68,89,50,266 Application of funds: Land 5,40,00,000 Plant & Development 1,29,60,00,000 Warehousing 12,60,00,000 Machinery Processing 2,46,00,000 Grading 1,14,00,000 Packaging 1,65,00,000 Other Equipments 2,00,000 Office 6,00,00,000 Furniture & Fixtures 4,00,000 Cash at bank 9,58,56,255 Cash in hand 39,94,011 TOTAL ASSETS 1,68,89,50,266
ASSETS LAND: Land will be purchased in the rural areas for the setup of the plant & machinery. 45 bigha land will be acquired at the cost of 12 lakh per bigha. WAREHOUSE: A total of 14 bays will be setup of an area of 45000 sq.ft per bay. The total cost is estimated at around Rs.37.80 crores and 10% as the development cost.
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BUSINESS PLAN
PLANT & DEVELOPMENT:
2012
The cost of construction of the plant and its development per sq. ft is taken from the internet as $40/sq.ft with clean room facilities. So the total cost of construction and development comes to Rs.129 crore (approx.) MACHINERY: All the machines will be purchased from the respective vendors on cash basis. In total we will be having 9 machines for the processing, grading and packaging services. The total cost of machinery is estimated at around Rs.5.25 crores. OFFICE & FURNITURE & FIXTURES Office will be purchased at the cost of 6 crores in an urban area and furniture & fixtures worth Rs. 4 lakhs. LIABILITIES Liabilities include the cost of all the assets and the working capital for the first two months and 10% of the working capital as contingency. The liability is divided into bank loan & equity at 70% and 30% respectively. The loan will be taken from a bank @ of 16% per annum and the equity will be sourced from 4 to 5 investors through private placements.
CASH FLOW
2012 Net Profit Before Tax 1,000,211,653 Net Cash From Operating Activities Net Cash (used in)/from Closing Cash & Cash Equivalents 497,865,617 (484,539,717) 13,325,900 2,808,772,749 (580,525,651) 2,228,247,098 2,988,077,401 (909,615,759) 2,078,461,641 2,472,186,402 5,868,077,401 Amount in Rs. 2013 2014
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BUSINESS PLAN
2012
REFERENCES
The web references and reports would be useful in the course of the project Websites: www.justdial.com, www.parinda.com, www.companiesinmumbai.com, www.economywatch.com. Websites of Ministry of India: Ministry of food processing (mofpi.nic.in) & Ministry of construction (www.moch.gov.iq) Reports: KT & G Business plan Report on Indian food processing industry Report on financial draft
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CAMIS Final

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India-Europe International Business School

CAMIS PRIVATE LIMITED

MR. ANUP AWASTHI PROFESSOR ENTREPRENEURSHIP & SMALL BUSINESS MANAGEMENT

CAMIS PRIVATE LIMITED

CAMIS PRIVATE LIMITED

Week 7 Week 9 Week 8

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PROJECT GANTT CHART

Finalising the Business plan idea

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To achieve these objectives, our strategy consists of:

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COUNTRY-WISE LEVEL OF PROCESSING

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Growth Rate 15%

Fruits & Vegetables

Growth Rate 20%

Meat & Poultry

Growth Rate 10%

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Growth Rate 20%

Growth Rate 27%

Growth Rate 85%

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KEY SUCCESS FACTORS

KEY RISK FACTORS

Meat & Poultry

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EMERGING BUSINESS MODELS

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GROWTH DRIVERS FOR FOOD PROCESSING INDUSTRY

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MAJOR INVESTMENTS IN FOOD PROCESSING INDUSTRY

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BUSINESS PLAN EMERGING TRENDS IN THE FOOD PROCESSING SECTOR

Emerging trends in the food processing sector

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Figure 19: Food processing share in manufacturing

SWOT ANALYSIS OF FOOD PROCESSING INDUSTRY

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SALES REVENUE STRUCTURE

Storing products in their respective sections

Processin Dispatching the materials to the clients and distributors g

To Clients (Wholesellers, Retailers & Processors

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HUMAN RESOURCE PLANNING

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BUSINESS PLAN SALARY STRUCTURE:

JUNIOR LEVEL EMPLOYEES

PEON & WATCHMAN

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MARKETING OBJECTIVES FOR THE FIRST YEAR

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