Business Plan By Raviraj Kadam

& Sandeep Chaudhary

Statement of purpose Our mission

The Paani Mineral Water Committee ensures that appropriate policies, plans, strategies and guidelines are put in place to preserve the State's mineral water resources for the maximum benefit of the whole community. Protection and management of this valuable asset will ensure that considerable economic returns through commercial bottling, hydrotherapy and tourism are maintained. Importantly, we will encourage and improve community access and use of this resource. Our Mission will be achieved by: Effectively communicating our Vision within the Central Highlands Region and the State. Advocating sustainable development of commercially extracted mineral water. Promoting consumer awareness of commercially available products and services. Encouraging Government, Municipal Councils, Regional Water Authorities and other public bodies to develop coordinated infrastructure planning and development controls to protect Mineral Springs Reserves and recharge areas. Coordinating the development of Mineral Springs Reserves through proper planning and funding assistance to mineral springs reserve managers. Providing a focus for expert advice to the Minister on all matters relating to the management of the State's mineral water resource.

Introduction

Mineral waters have been sought by generations for their purity and health giving effect. The development of great public bathhouses in North Africa, Italy, France, Germany and Britain marked both the rise and fall of the Roman Empire. The European settlers of the Central Highlands Region celebrated the discovery of mineral water as early as 1836 with an acceleration of interest and discovery during the hectic gold rush days when the streams beds of the region were excavated and sluiced. The discovery of Clifton Springs is attributed to escaped convict William Buckley in 1804 but development of this site as a resort and bottling works (to replace inferior imports) had to wait until the 1870's. Inappropriate land use such as the mining, burning of coastal limestone and discharge of untreated sewage at Clifton Springs saw the loss of Victoria's earliest resort.

Legal Business Description

Paani mineral water was founded as a Sonic corporation with principal offices located in Vashi, Navi Mumbai, Maharashtra. All operations, from administration to marketing strategies, take place at this leased office location of approximately 500 square feet.

Strategy
The Paani mineral water pvt ltd is to aggressively develop and market a full range collection to consumers. The company intends to market its line as an alternative to existing mineral water plants and differentiate itself through its marketing strategies, exclusiveness, and brand awareness. It intends to build on its core portfolio of products and overcome any obstacles by using the company's expertise in the mineral water industry. The company's goal in the next year is to make an overwhelming impact on the pure water and create a large consumer demand for the product. The company's goal in the next 2-5 years is to venture into soft drinks and health drinks. It plans to also license parentrals & surgical botlles. According to Indian pharmaceutical council, parentrals accounted for 52% of total sales in 2008.

Strategic Relationships
The company has strategic alliances with Parentrals India ltd and the Cipla pharmaceuticals. These alliances are valuable to New Look because they provide the needed exposure for its line and the association of its products with celebrities.

BALANCE SHEET
Past Performance Sales Gross Margin Gross Margin % Operating Expenses Collection Period (days) Inventory Turnover Balance Sheet 2009 Current Assets Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Current Liabilities 2010 2011 2009 Rs.0 Rs.0 0.00% Rs.0 0 0.00 2010 Rs.0 Rs.0 0.00% Rs.0 0 0.00 2011 Rs.3,000,000 Rs.750,000 25.00% Rs.1,200,000 34 6.00

Rs.0 Rs.0 Rs.0 Rs.0 Rs.0

Rs.0 Rs.0 Rs.0 Rs.0 Rs.0

Rs.445,000 Rs.420,000 Rs.1,545,000 Rs.105,000 Rs.2,515,000

Rs.0 Rs.0 Rs.0 Rs.0

Rs.0 Rs.0 Rs.0 Rs.0

Rs.525,000 Rs.80,000 Rs.445,000 Rs.2,960,000

Accounts Payable Current Borrowing Other Current Liabilities (interest free) Total Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Capital and Liabilities

Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0

Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0

Rs.1,000,000 Rs.1,090,000 Rs.410,000 Rs.2,500,000 Rs.355,000 Rs.2,855,000 Rs.70,000 Rs.35,000 Rs.0 Rs.105,000 Rs.2,960,000

World water bottle market

Annually consumption Estimated sales Consumption growth 189billion liter Rs.200 billion 7 % per year

1. Companys Vision 2010

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Company is oriented to achieve the sales within first month 4 lacks units of the 1 litre bottle and for the first year is to achieve 55 lacks units. Companys positioning


Pure water for deserving people. Paani Clear water Pvt. Ltd. is committed to provide people a low price mineral water having maintaining the same quality level. The company wants to create a brand name which would be seen as the synonyms to the mineral water.

2. Companys Mission
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Company is also planning to expand its business in north India by setting up more 3 more plants in Punjab (1) and Himanchal Pradesh (2). The company is private company which will start operating by setting up a plant and funding money from the private money vendors, Govt. bodies and banks. Financial overview

3. Company summary
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4. Company summary
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Costs occur: Fixed assets require (initial investment) Land: 1 lacks (12000 square meter @600 RS. Per Sq. Meter including the registration and legal expense of RS. 5000 Rs.). Manufacturing Plant: 1 lacks(including installation charges and transportation expenses of 45000). Packaging plant : 5000 bottels per day.

 

Variable expenditure: Cost per unit of 1 liter bottle.

5. Plant information
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Cost of the plant:1laks. Plant capacity: 50000 bottles per day. Depreciation rate: 10%. Plant requirement: 100 laborers. Plant locations: Upvan(Thane, Maharashtra). Land require: 12000 sq. meter. Liabilities :


6. Company summary
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The company will get the loan from the both banks, private money lenders and governments small industrial loan providers. The name of the package mineral water will be Paani. The company is mainly oriented to manufacture 1 ltr. Mineral Bottle. The basic attribute of the product are as following:

7. Product
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Priced at Rs. 10. Level of quality is exceptional. Product is basically targeted for the common Indian people who are not getting the good water resulting into many diseases. SWOT Analysis

8. Companys analysis
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The weakness of new in the market may cause a threat of competition but the company is confident enough to turn it into the opportunity by capitalizing on its strengths. The basic threat to the company is the

company is not too much experience in the market so competition might hit it so the company adopted a strategy of differentiation by getting the low cost benefit. Threat The weakness is only not experience in the market as the company is new. This is the opportunity for the company to cater the market. The low price Manufacturing is the strength of the company. The quality is also exceptional. This will provide company a opportunity in the not fully explored market. Opportunity Weaknesses Strengths Internal/ External 9. Market analysis
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The market of packaged drinking water in India is not very well developed. The area of Maharashtra. and Gujrat has lot of scope to be cater. There are many player in 10 RS. Price bottle segment like Ganga, Rail Neer etc. but the quality level is not very good. The high segment is of above 10 RS. Offering good quality but the prices are higher in ratio of the quality provided by them. Strategy and implementation Segmentation strategy
  

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Low price bottle for the common Indian. The important target audience are the tourist. The product will also be segmented on the basis of the better quality at less prices. The company will also segment it as the safest mineral water and will help person to prevent from the diseases caused by using non-filtered water. Strategy and implementation Differentiation strategy The main variables of it are the quality and price. The company will provide good quality at the lesser price.

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The company will also provide the huge distribution chain so that the difficulty of getting it may not occur. For this purpose company will contact to the Indian railways and Roadways. The company will use the indirect sales network channel which will in contact to the internal sales force of the company. Strategy and implementation Positioning strategy The main element of positioning is a low price mineral water with good quality to prevent from the diseases caused by the non-purify water. Strategy and implementation Target area Tourist places. Religious places. Railway stations. Roadways. Places where available water is not suitable to be drink. Places where ground water level is very low. Strategy and implementation Sales forecasting: Short term: 9 lacks units (in 1 month) Long term: 1.1 crore units (in 1 year) Places of launching: This will include 40 cities from Maharashtra to U.P.


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These 40 cities are based on the tourist places and religious place.

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Strategy and implementation Places of launching:



Each city is deemed as having 5 towns. So total no. of towns are 200. Market research shows the demand of average 200 units in each town daily. Organization structure

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Sales forecasting

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Following will be the departments of the organization: Manufacturing. Sales and distributions. Marketing and advertising. Human resource. Finance. Administration. Organization structure Job of manufacturing department:
    

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Purchase of raw material. Filling. Capping. Labeling. Quality check. Organization structure Role of sales and distributions department: Make sure the delivery of the product to the dealers.

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Manage the inventory. Contact to the dealers. Manage the sales force. Get the feedback of the dealers and also from the market. Organization structure Job of marketing and Advertising department: Generate the awareness. Manage communications. Get the feedback from the market. Analyze the market scenario. Conduct market research. Give necessary suggestions. Attempt to develop brand. Organization structure Job of marketing and Advertising department: How to promote the product?
    

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Give advertising in the newspapers. Articles and ads in the healthcare magazines. Conduct the health protection events. Sponsor the health events and free health check ups. Convey about the product to the people in these events and provide them brochures. Templates about it and why it is safe for the health? Organization structure

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Jobs of HR department:

   

Recruit workers. Decide the pay scales. Decide the increment and bonus. Train the workers if required. Organization structure Jobs of Finance department: Allot budgets. Prepare necessary a/c. Solve the problem related to finance. Provide the necessary information to the other departments. Organization structure Jobs of planning and administrative department: To plan for the future. Make the planning for future growth such as plant development. Manage the co-ordination among all the departments. Combined all the organization as an unit. Control the whole organization. Organization structure Sales department structure: 100 sales person (1 for two town) 20 sales officers (1 for two city) 10 divisional manager (1 each for a group of four cities). 2 zonal manager (1 each for 2 zones Maharashtra. and Gujrat. Organization structure

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Target setting: The targets are being set on the basis of the area and the potential of the respective area. Bonus:


In case if a person sell more quantity than whole chain will get a bonus of 30 Paise in ratio of their salary. Financial data Break even analysis: The company is confident to achieve the break even point with in the 1 st year of the operations. Assumptions All these figures which are presented are on the base of the research conducted by the company. There may be some difference in the actual market scenario and scenario given by the company. The financial figures are only the expected. There may be some deviation. The market growth rate is only the assumed so, it might contain some differences from actual scenario.

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