Business Summary

Guidelines

As the first stage of The Economic Times The Power of Ideas this form seeks to ascertain
genuine interest among those wishing to undertake a business endeavor. The information sought,
therefore, is two-fold:
o A brief profile for public consumption. Please do not provide any confidential data in
these fields. It is being sought to promote the larger idea of an entrepreneurial culture in
India by generating more interest.
o A Business Summary for the Jury. This will be treated as completely confidential.
Information provided by you under all heads marked Completely Confidential will be
disclosed at any stage to the Evaluating Panel for this programme. All rights of your
business idea will vest with you (please see detailed Terms & Conditions).
Please provide information on all parameters. If you are unable to answer a parameter, please
write the reasons therein. Please do not leave any point blank or unfilled. It may otherwise be
regarded by the Jury as an incomplete application, and rejected.
At the same time, please do not feel any compulsion to share too much information or detail at
this stage.
You may participate in The Power Of Ideas either as an individual or team. However, the
Personal Details in this business summary format will be those of the CEO/Leader/ the one
individual who will act as the teams representative at this stage.
If short-listed, the participant and two team members will have the opportunity to attend the
group mentoring session.
Guidelines have been provided to help you fill the Business Summary. We encourage you to
provide answers in 75-100 words, but surely not more than the word limit prescribed for each.

I. Details Required for Public Consumption (All fields mandatory)

1. Personal Details:
Name: Mr./Mrs./Ms. G. HARI KIRAN

Date of Birth (DD/MM/YYYY): 10TH MARCH 1986

City: HYDERABAD

.
.

State: ANDHRA PRADESH

2. Which industry does your business idea cater to?

(Please tick the applicable option)

Information Technology/Technology Enabled Both products and services

Outsourcing Business Process/Knowledge Process
Telecom
Healthcare
Media and Entertainment
Internet
Manufacturing
Clean Technology/Alternative Fuel
Intellectual Property driven propositions
Other (Incl. summaries from sectors not mentioned above)
If other, please specify FOOD PROCESSING INDUSTRY (PACKAGED / CONVENIENCE
FOODS READY MEALS).
3. What impact do you believe your idea will have on your defined market?
(Since this is for public consumption, please do not disclose either your business idea or any of its details.
Please talk of only the end-benefit your business idea can identify with your market that will come about
because of your idea.)

Market Overview:
India is the world's second largest producer of food next to China, and has the potential of being the
biggest with the food and agricultural sector. The total food production in India is likely to double in
the next ten years and there is an opportunity for large investments in food and food processing
technologies, skills and equipment, especially in areas of Canning, Dairy and Food Processing,
Specialty Processing, Packaging, Frozen Food/Refrigeration and Thermo Processing. Fruits &
Vegetables, Fisheries, Milk & Milk Products, Meat & Poultry, Packaged/Convenience Foods,
Alcoholic Beverages & Soft Drinks and Grains are important sub-sectors of the food processing
industry. Health food and health food supplements is another rapidly rising segment of this industry,
which is gaining vast popularity amongst the health conscious.
Currently, the food processing sector, though in the nascent stage, constitutes 14% of manufacturing
GDP amounting to products value of Rs.2,80,000 Crores. It employs 130 lakh persons and is
supposed to increase at an annual rate of 7% out of which Value-Added food products comprise
Rs.90,000 crores.
Size of the Semi-Processed and ready to eat packaged food industry is around Rs. 5000 crores
(US $ 1.1 billion) and is growing at over 20% with over 60,000 bakeries, 20,000 traditional food
units and several pasta food units.
The convenience foods segment, growing at a rate of 20%,offers the greatest potential. Technological
revolutions in processing and packing of food products, coupled with fast growing inland and export
markets presents a very good potential for further investment in this sector.

India with a population of 1.10 billion (growing at about 1.7 % per annum) provides a large and
growing market for food products. Food products are the single largest component of private
consumption expenditure, accounting for as much as 49% of the total spending.
End Benefit Customer:
The formats of small packages combined with buy before you eat variety will reduce the
load on cold chain and will cater to the large section of people without refrigerators at home.
Factors such as rapid growth in the economy, the technological innovations in home
appliances such as refrigerators microwave ovens, rise of families with dual incomes and the
changing food habits of the population all point to the increasing need for healthy processed
food.
Rapid urbanization, increased literacy, changing life-style, more women in work force and
rising per capita income have all caused rapid growth and changes in the demand pattern,
leading to several new opportunities in food and beverages sector.
An average Indian spends about 50% of household expenditure on food items. Demand for
processed food rising with growing urbanization and income levels.
Largely untapped domestic market of 1100 million consumers. 300 Million upper middle
class consumers consume processed & packaged food. 200 million more consumers expected
to shift to processed packaged food by 2010.
Design of E-procurement and just in time delivery systems for the food industry companies in
big cities will save money on inventory, wastage and bulk purchase.
In view of the above facts the demand has been rising at a good pace and there is enough latent
market potential waiting to be exploited through developmental efforts for Packaged / Convenience
Foods.

(Source-Investment Opportunities in India for FPI - Ministry of Food Processing & Industries) & FICCI.

www.mofpi.nic.in

II. Details Required for Jury (COMPLETELY CONFIDENTIAL)

1. Personal details:
Complete address: Plot No.90, Sri Krishna Nagar, Krupa Complex, Neredmet, Hyderabad 500056.
Email: ghkiran@gmail.com
Mobile and/or Landline (With STD code): +919885850333, 040-27240479
2. Education:
Please add details such as the degree completed and institution

Diploma:

Diploma in Commercial & Computer Practice from State Board of Technical

Education & Training, Andhra Pradesh.

Graduation:

Bachelor in Commerce.

Post-Graduation:
Professional:

Pursuing PG Diploma in Supply Chain Management from Institute of

Management Technology, Ghaziabad one of the Top 10 B-schools in India.

Others. Please specify: Pursuing 6 months Diploma in Materials Management from National
Institute of Labour Education & Management, Chennai.
3. Experience:
Full time work experience (in years): 4.8 .
Organisation

Designation

Function/Role

From-To

(Month/Year)
Gati Limited
Executive-SCM
Supply Chain Mgt.
Feb06 to Uptodate
Role: (Configuration/Implementation of Warehouse Management System, Training to
Warehouse users, HelpDesk of WMS, RFP/RFQs handling, taking care of Warehouse/
Logistics Costing.)
Restile Ceramics Ltd

Secretary-GM(S&M) Commercial /
Secretarial Activities

June04 to Jan06

4. What industry will your business idea operate in?

(Please take the Evaluating Panel through a description of the larger space/industry you are operating/planning to operate in,
highlighting the gaps and opportunities, the market leaders, the size & scalability, etc and then, in brief introduce your

proposition/business idea. The Evaluating Panel must be able to appreciate your knowledge of your space and the
proposition/business idea. Word limit: 150250 words)

The detailed Market Summary is given for the question no.3:

India is the world's second largest producer of food next to China, and has the potential of being the
biggest with the food and agricultural sector.
Currently, the food processing sector, though in the nascent stage, constitutes 14% of manufacturing
GDP amounting to products value of Rs.2,80,000 Crores, out of which Value-Added food products
comprise Rs.90,000 crores. Size of the Semi-Processed and ready to eat packaged food industry is
around Rs. 5000 crores (US $ 1.1 billion) and is growing at over 20%.
My Business Idea operates in Packaged / Convenience Foods (Ready Meals) segment, Pls find the
Gaps & Opportunities in the Industry:
GAPS:
Packaged food products have been slow in penetrating the large potential presented by India's
250 million strong middle class. But due to growing urbanization and changing food habits,
the demand has been rising at a good pace and there is enough latent market potential waiting
to be exploited through developmental efforts.
The single most important problem facing the Indian agricultural industry is the highly
inefficient supply chain. Because of lack of cold chain infrastructure and also a food
processing industry about 20 per cent of all foods produced in India (Rs. 500 b) are wasted.
There is lots of manual handling and hence food hygiene and quality are suspect.
The pace is slow in the food sector compared to the other sectors such as IT and Pharma.
There are no billion dollar players in India in the food industry where as China and
Philippines have several large players with sales exceeding US $ 1 billion.
The supply chain sector is very weak with no process owner and this can spell disaster. The
food supply chain needs the attention of the academics, the industry and the Government.
India has a huge opportunity to become a leading global food supplier if only it has the right
marketing strategies and of course agile, adaptive and efficient supply chain.
Cost of packaging ranges anywhere from 10 to 30% of production costs for the food industry
and efforts should be made to reduce these costs through use of manufacturing automation
and economies of scale.

OPPORTUNITIES:

 It is the seventh largest country, with extensive administrative structure and independent
judiciary,
a sound financial & infrastructural network and above all a stable and thriving
democracy.
Due to its diverse agro-climatic conditions, it has a wide-ranging and large raw material base
suitable for food processing industries. Presently a very small percentage of these are
processed into value added products.
Demand for processed/convenience food is constantly on the rise. Fast foods, ready meals
and frozen products have increased market share in recent years.
India's comparatively cheaper workforce can be effectively utilised to setup large low cost
production bases for domestic and export markets.
Indiahas diversity in terms of its population with several religious groups with different food
habits and culture. This diversity should be used to advantage to become the Halal Food
Hub, the Organic food hub, the Vegetarian food hub the Sea food hub amongothers.
India presents a huge opportunity and is all set for a big retail revolution. India is the least
saturated of global markets with a small organized retail and also the least competitive of all
global markets. A strong retail front-end can also provide the necessary fillip to agriculture
and food processing, and other industries.
The Indian food processing market is one of the largest in terms
consumption, and export and import prospects. Since, India is one of
producers worldwide, with new reforms ruling the roost,
commercialization. The country's food processing market is opening up to
investors across the globe.

of production,
the major food
it encourages
a wide range of

Very good investment opportunities exist in many areas of food processing industries, the
important ones being: fruit & vegetable processing, meat, fish & poultry processing,
packaged, convenience food and drinks, milk products etc.
No industrial license required for food and agro processing industries except for alcoholic
beverages and items reserved for small scale sector, which are: Pickles & Chutneys, Bread,
Pastry, Hard boiled sugar candy, Rapeseed Oil, Mustard Oil, Sesame Oil, Ground nut Oil,
Sweetened Cashew nut products, Ground and processed spices other than spice oil and
Oleoresin spices, Tapioca sago and flour
Automatic approval (including foreign technology agreements within specified norms) is
permitted for FDI up to 100 percent equity of Indian companies, for all food and beverages
except for alcoholic beverages and items reserved for small scale sector
Largely untapped domestic market of 1100 million consumers. 300 Million upper middle
class consumers consume processed & packaged food. 200 million more consumers expected
to shift to processed packaged food by 2010.
Rapid urbanization, increased literacy, changing life-style, more women in work force and
rising per capita income have all caused rapid growth and changes in the demand pattern,
leading to several new opportunities in food and beverages sector.
Initially the Pilot Business Project will start in Hyderabad & then spread to other Metros &
prospect cities.

MARKET LEADERS:
HLL, ITC, MTR and others have introduced some innovative heat and eat dishes with reasonably
good packaging. But there is lots of manual handling and hence food hygiene and quality are suspect.
Multinational companies have entered the food value chain in India, Cargill and Conagra in agriinputs, Tropicana in food processing and Metro in wholesaling. Local companies like Dabur, MTR,
ITC, Godrej, and Amul are aggressive across the value chain. Multiple restaurant chains such as
McDonalds, Pizza Hut, Dominos, Coffee day, Qwikys and Saravana Bhavan, and Sagar Chains are
growing rapidly.
INTRODUCTION OF IDEA:
The processed food industry should introduce innovative new products of high quality at low cost in
small package sizes in ready to eat format to cash on this booming opportunity. 55% of the Indian
population is below the age of 25 years & most of the them working away from their families. They
are habituate for the outside foods for which they dont have the other alternatives & they are missing
the taste of home food.
I am Taking an example of Dabbawalas who made an evoluation in the field of food supply. They are
suppling 2 lakhs tiffin boxes & with a revenue of 50 crores per annum. This revenue is came from
the service of supplying the tiffin box from the customer home to their office.
Its a very good opportunity for the Food suppliers who can supply ready meals where the people are
very busy while Rapid urbanization, increased literacy, changing life-style, more women in work
force and rising per capita income have all caused rapid growth and changes in the demand pattern,
leading to several new opportunities in food and beverages sector,
My Idea is to supply the Ready Meals to the work station of the Employees with a taste of home food
& giving opportunity to the unemployed womens (house wifes).
Now a days most of the people suffering from diseases / illness from the foods they are taking outside
daily. Now its time to the bachelors to take home made healthy food supplied at their work stations.
The food will be supplied in a good packaging with healthy ingredients, just like feel home food. It
will be 5 days menu card for the Ready Meals. The catching customers are Corporate offices,
Manufacturing plants, Bachelors areas, Colleges & Hostels, Events places, etc...

5. What is the Value proposition of your business idea?

(Present your business model and its USPs (including any Intellectual Property and other entry barriers you may be
creating), the specific market & geography segments you will be addressing, et al highlight any validation that you may
have done that supports your proposition. The Evaluating Panel must be able to clearly understand your business proposition
and business model to the opportunity. Word limit: 250-750 words)

I am Taking an example of Dabbawalas who made an evoluation in the field of food supply. They are
suppling 2 lakhs tiffin boxes & with a revenue of 50 crores per annum. This revenue is came from
the service of supplying the tiffin box from the customer home to their office.
Its a very good opportunity for the Food suppliers who can supply ready meals where the people are
very busy while Rapid urbanization, increased literacy, changing life-style, more women in work
force and rising per capita income have all caused rapid growth and changes in the demand pattern,
leading to several new opportunities in food and beverages sector,
My Idea is to supply the Ready Meals to the work station of the Employees with a taste of home
food & giving opportunity to the unemployed womens (house wifes).
Now a days most of the people suffering from diseases / illness from the foods they are taking outside
daily. Now its time to the bachelors to take home made healthy food supplied at their work stations.

Business Model Flow Chart:

FOOD WAGON

COST

MENU

Ingredients
ss

MON

Equipments

TUE

Labour
Distribution
Marketing
Promotion
Waste

PROCESS

COOKING HOUSE

WED
THU
FRI

Outlet 1

DISTRIBUTION

MARKETING

PROMOTION

Outlet 2
Outlet 1
Outlet 3

Outlet 2
Outlet 3

Customer

BILLING

The food will be supplied in a good packaging with healthy ingredients, just like feel home food. It
will be 5 days menu card for the Ready Meals. The catching customers are Corporate offices,
Manufacturing plants, Bachelors areas, Colleges & Hostels, Events places, etc...
There will be a Central cooking house from where the packed ready meals will be supplied to the
offices & where the consumption for the food as per above flow chart. For this model we have also
opportunity for Takeway facility to the customers at the Outlets. The outlets can be owned or can be
outsourced to the Franchisees.

6. What is your sales strategy? And what is your technical/product/delivery model?

(Present your infrastructure, your key partnerships, customers, etc. Revenue model as well model for growth/scaling up
should also be mentioned so that the Evaluating Panel can ascertain the potential of your venture. Word limit: 250-750
words)

The catching customers are Corporate offices, Manufacturing plants, Bachelors areas, Colleges &
Hostels, Events places, etc...
The concept is very clear that to supply home made healthy food to the customers premises (at their
work stations).
The food will be supplied in a good packaging with healthy ingredients. It will be 5 days menu card
for the Ready Meals with a Central cooking house & it will be supplied to the area wise outlets &
from outlets to the ultimate customers.
It is important to forecast the demand for each of the channels and serve the customer with in the
expected lead time. The service levels and the pricing will determine if the customer returns for his or
her next purchase. The products should be marketed aggressilvely.
Bookings will be taken by the Co-ordinators area wise / customers wise & Design of E-ordering (For
each customer a unique no. company wise will be provided, customer can make the order by
Phone/Internet & also by SMS) and just in time delivery systems for this Idea will save money on
inventory, wastage and bulk purchase. Initially the Pilot Business Project will start in Hyderabad &
then spread to other Metros & prospect cities.
Delivery Model:

CENTRALCOOKING
HOUSE

Outlet1

Customer1

Outlet2 2

Customer2

Outlet3

Customer3

7. What is the competition for your business idea?

(Please identify your competition and present an analysis on Strengths, Weaknesses, Opportunities and Threats (SWOT
analysis) vs competition. Also, state the unique features/parameters of your proposition be it product/service. Word limit:
150500 words)

MARKET LEADERS:
HLL, ITC, MTR and others have introduced some innovative heat and eat dishes with reasonably
good packaging. But there is lots of manual handling and hence food hygiene and quality are suspect.
Multinational companies have entered the food value chain in India, Cargill and Conagra in agriinputs, Tropicana in food processing and Metro in wholesaling. Local companies like Dabur, MTR,
ITC, Godrej, and Amul are aggressive across the value chain. Multiple restaurant chains such as
McDonalds, Pizza Hut, Dominos, Coffee day, Qwikys and Saravana Bhavan, and Sagar Chains are
growing rapidly.
Coming to my Idea its unique & some competition from the local caterers & hotels.

8. Do you have a team in mind?

(If you have a team already, please introduce your key team members, emphasizing their academic and working experience
that is relevant to your business. The investors must be able to assess, and get comfortable with, your ability to implement
your plans. If you are planning a new venture, please give the details of team size, role of each team member with academic
and working experience required for each. The investors must be able to assess, and get comfortable with, your ability to
implement your plans. Word limit: 150500 words)

I am taking guidelines from the following persons who have tremendous knowledge & leadership
skills in the area of Supply Chain / Logistics & Marketing.
Mr. Arthur Simon Bertie
Over 35+years experience in Logistics & Supply chain solutions
Ex. Chief Business Chain Officer Gati Limited, Hyderabad (2002-08)
General Manager Federal Express Pacific, Singapore (1994-2000)
Education: Master of International Business, University of Wollogong (Australia)
Awards
FY98 Federal Express Five Star Award
FY98 Federal Express APAC World Class Leadership Award
FY97 Outstanding Performance Award (By Temic Group of Companies)
FY96 Federal Express APAC Leadership Award
And other awards etc.

Mr. Santosh Kumar

Over 13+ yrs experience in Logistics/Supply chain solutions & Sales
Business Lead Consultant
Satyam Computers Limited
Ex. Head Logistics & New Business Development
Gati Limited
Education: Masters in Operations from Delhi University
I have my friends who holds their degrees in Hotel Management. The team size will be finalized as
and when required.

9. What are the risks you foresee in your business?

(Explain the risks that you either foresee or are already facing in your business and explain the same, if you can. Do add the
risk reduction strategies planned. Word limit: 100250 words)

Creating Awareness is a key challenge.

A fair amount will be spent for Advertising & Marketing.
Consistant quality of food
Local competition from the caterers, canteens & hotels.
A fair amount will be spent for setting up the office & recruiting/training the people in the era
of Food Industry.
The single most important problem facing the Indian agricultural industry is the

highly inefficient supply chain. Because of lack of cold chain infrastructure and also a
food processing industry about 20 per cent of all foods produced in India (Rs. 500 b)
are wasted. Adapting efficient Supply Chain & Distribution strategy is a key challenge.

10. What are the Financials (in Indian Rupees) for your business?
(For those with an existing business, please use a table to summarise your past years revenues and profits and project the
same for the next three years (if applicable). Also, state the funding you have received to date (whether venture capitalist,
family, etc) and the funding that you are now seeking and how you plan to use the funds. Please give forward projection of
your funding requirements for the next three years. If you are planning a new venture, please give projected financials,
investment sought and plan for use of funds. Word limit: 100250 words)

Respected Evaluating Panel Members:

As its a new venture & cant provide the financials, it also depends upon the Items menu for the
ready meals, no.of customers per day served etc (on an average per customer Rs.25 + distribution
cost + packaging cost, with an dishes of 2 curries, 2 rotis, Dal/Sambar, Rice, Salad, 1sweet &
chutney/Pickle) Iam giving some cost headings which will be used for the Project. I will take help of
your team in Group Mentouring & One-on-one Mentoring, then I can come up with exact figures.
There are 3 Costs involving, i.e.,
1. Set-up Cost (one time)
2. Fixed Cost
3. Variable Cost
Cost in
Rs.
1. Fixed Cost
i) Rentals
ii) Salary
a) Cook
b) Helpers
c) Co-ordinators
iii) Vehicles - Per KM
2. Variable Cost
i) Groccery / Ingredients
ii) Packaging: Foils box / Plastic Papers
3. Set-up Cost - One time
i) Registration with Govt.
ii) Rental Deposit
iii) Renovation: (Electrical, Civil, False Ceiling etc.)
iv) Boards / Hoardings
v) Gas Application - Commercial usage
vi) Utensils: Cooking/storing/distribution etc.
vii) Brochures (Marketing) & Menu Card
viii) Tally Software for Accounting
ix) Computers
x) Printers
xi) POS (Point of Sale)
xii) Tables & Chairs
xiii) Fans & Tubelights
xiv) Other Furnitures (for Takeway Centre)

The final costing will be done for the ready meals after finalizing the Menus of food & no.of servings
etc. on the following structure:
Name of the Dish: __________________.
No.of Portions (No.of serving plates/persons): ______________________.
Sl.No. Ingredients

Qty. Rate/kg

Protein

Fat CarboHydrates

Calories Cost (Rs.)

Total Cost _________

Per Portion ________

I HAVE UNDERSTOOD THE TERMS AND CONDITIONS OF THE

ECONOMIC TIMES THE POWER OF IDEAS AND I RESOLVE TO ABIDE BY
THEM.
Place: Hyderabad .
Date:

18.02.2009

Signature

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