ROTIZ INCORPORATION

BUSINESS PROPOSAL

COMPANY PROFILE
Rotiz Incorporation is an India - based company engaged in the food business. Rotiz Incorporation will have a diversified presence in hygienic and healthy, cooked rotis for the convenience of ICE(Information, Communication and Entertainment) age population. Rotiz Inc. will be Indias most valuable and respected corporation.We assure that we will be preceived as one of the dedicated and customer oriented company. Rotiz Inc. aims at creating multiple drivers of growth anchored on its time tested core competencies Unmatched distribution reach, Superior brand building capabilities, effective supply chain management and acknowledged service skills. The companys brand include different varieties of Rotis such as Plain Roti, Masala Roti and Multi grain rotis. We also provide Bhakhri (thick crispy Roti). We are targeting Western part of Ahmedabad as our targeted customers resides there which provides us a better scope of progressing. We cater mainly Working Couples, Floating population, Hostelites and PG students.

ROTIZ INC.
Address: Nehrunagar, Ahmedabad Telephone: 9723447515 Email: rotiz.inc@gmail.com Website: www.rotizinc.org

PROMOTERS PROFILE
Rotiz Inc. is founded by a group of four members viz. Sharma Sonal, Paranjpe Kiran, Shah Neel and Gaud Jayprakash. Sharma Sonal is an MBA from well known B-School having an experience of 5 years in the field of Marketing and Human Resource Management in Service Sector. The contribution towards the establishment of the corporation is in terms of finance with the 20% of the capital investment. Paranjpe Kiran is an MBA from Nirma University and having an experience of 6 years in Catering and Event Management. The contribution towards the establishment of the corporation is in terms of finance with the 20% of the capital investment. Shah Neel is an Entrepreneurial Post Gradudate, having an experience of 8 years in MNC. The contribution towards the establishment of the corporation is in terms of finance with the 20% of the capital investment. Gaud Jayprakash is having his own Estate Agency. His contribution in Rotiz Inc. by providing building as main production unit. Other Promoters: Bank Borrowings, Unsecured Loans from friends and relatives.

LOGO OF THE COMPANY

EXECUTIVE SUMMARY
OBJECTIVE: Qualitative objective: The objective of Rotiz Inc.is to serve with healthy & hygienic rotis to our targeted customers. Initially we are only targeting western Ahemdabad. And after few years of establishment we will be slowly expanding and catering all main cities of Gujarat. Quantitative objective: Initially we are targeting 2000 houses of western Ahmedabad & will increase our volume as per increasing demand and growing business. MARKET ANALYSIS: As per todays scenario in the prevailing market there is a lot of competition in the various products and also in their substitutes. But as far is Rotiz Inc. is concerned there is no such strong competition to the rotis. There may be other substitutes in the market but no one as strong as ROTIZ.INC. As we provide convenience with the qualitative product. As our target segment is the western Ahmadabad, the price affordability is as per the convenience of our targeted customers. We strongly believe in providing hygienic product and service so keeping in mind all the hygienic areas and as per it performing all the process and also after that the price of the rotis is kept very minimal with reference to the purchasing capacity of our customers. In the substitution to our product (competitor) we have frozen foods, which again are not hygienic and does not serve that basic necessity of the customers. We have a strong base as we are providing the basic convenience to the customers which also give us a scope to further grow and develop in the same area of service and providing other forms or variety in the

basic necessity. The market will grow slowly in its initial stage but once it gets the hold in the market the expansion would become easy. QUALITY: As ROTIZ INC. is firm on its values of providing the rotis with foremost hygiene and then carry forward with the convenience and affordability. Quality assurance is fix as we use the flour making machine and also the roti making machine which reduces the human hands involvement and therefore increase hygiene in the product. The water used in the flour making process is made sure that is mineral and also the other raw materials used in the production process are properly cleaned and then taken into the process. The spices used are quality spices. Also the operators before operating or every time operating to the production machine apply hand sanitizers and every worker in the production unit is made available a cap, a mask, hand gloves and proper sanitised uniforms to maintain proper hygiene of the poduct. We have the facility for the proper disposal of the wastage in the unit. We see to it that every aspect of hygiene is considered as to, that is main and basic element of our product which we can provide to our customers. We see to it the that machines have their proper maintenances so as to maintain the quality of the product and durability of the machine.

DETAILS OF THE PROPOSED PROJECT: Manufacturing / Servicing INTRODUCTION:

Product Our main product is Roti and Bhakhri (thick crispy Roti). In Roti, we have three varieties - Plain, Masala and Multi-grain. In Bhakhri also we have two varieties - Plain and Masala. Manufacturing process

COLLECTION OF RAW MATERIALS CONVERTING WHEAT INTO FLOUR MAKING DOUGH

FINAL PRODUCT- ROTIS

PACKAGING
COLLECTION OF RAW MATERIAL: In the initial stage, Our process of Roti making, starts with the collection of Raw material which includes Wheat, Oil, Salt and Pure mineral Water as per our scheduled demand. CONVERTING WHEAT INTO FLOUR: After receiving all the necessary Raw materials, Firstly, the wheat will get converted into flour for which, we have a grinding machine.

MAKING DOUGH: Here in this stage, raw materials such as flour, oil, salt and water are mix together in a dough mixer which gives us a dough for preparing Rotis. FINAL PRODUCT ROTIS We put dough in our Roti making machine which gives us a fully prepared Roti according to the varieties of size and shapes. We have special Roti making machine which contains these features. PACKAGING In the last stage, we packed the rotis in microwavel pouches. Each packet contains 5 rotis. Production Capacity 1) GRINDING MACHINE: We have istalled a grinding machine which grinds 60 kg wheat per hour. It costs Rs. 25000. We have purchased two such grinding machines. Maruti Industries, Gondal, Rajkot supplies these machines to us. 2) DOUGH MIXER: We have installed a dough mixer which prepares 100 kg dough in 15 minutes. It costs Rs. 450000. We have one such machine in our processing plant. A.V. Engineering Works, Patiala, Punjab supplies this to us.

3) ROTI MAKING MACHINE: We have installed one Roti making machine which prepares 5000 rotis per hour. It cost Rs. 1150000. A.V. Engineering Works, Patiala, Punjab supplies this to us.

With the help of these machines, we prepare 40000 Rotis per day which is our daily demand.

 Uses of the product Our product Roti, is a staple product and is a part of daily meal of our customers. So our product is used daily in daily meals. As our target segment is working couples and floating population, we deliver their convenience by providing them healthy and hygienic rotis on regular basis as per their demand and convenience. Users of the product The main users of our product are Working Couples, Floating population, Hostelites and PG students. Proposed market area Our proposed market area is Western Ahmedabad which includes Satellite, C.G Road, S.G. Highway, Gurukul, Bopal, Naranpura, Navrangpura, Ashram Road, Paldi, Drive-In, Vastrapur. Assumptions As per the Census Information of the year 2011, population of Ahmedabad is 7000000. Out of which, we have assumed that 25% population are literate, which comes to 1750000. Out of which, we have assumed that 1600000 people are falling under the category of Working population. Of which, 40% belongs to Middle-Upper and Upper-Upper strata. So approximately there are 500000 such houses. Out of which, we are catering, 2000 houses as per our demand and conveniency of customers. Marketing strategy

SEGMENTATION,TARGETING AND POSITIONING. Segmentation:

Segmentation can be defined as dividing the customers according to their needs and wants. There are four types of segmentations. 1. Geographic segmentation: Rotiz Incorporation is following geographic segmentation in the sense that they have targeted the western segment of ahemdabad. The western ahemdabad

includes the areas such as Satellite, Vastrapur, S.G.Highway, Drive-in, Bopal, C.G.Road, Navrangpura, Ashram Road, Nehrunagar, Naranpura. 2. Demographic Segmentations: It divides the customers according to their age,income,occupation,generation,life stages etc. Age: Rotiz Inc.is targeting mid-aged people Income: They have selected the middle-middle and uppermiddle segments of income. Occupation: They are mainly focusing on the working couples, floating population and hostelites and p.g students. 3. Behavourial Segmentation: Its the segmentation of the customers based on their behaviour,which includes benefits,occasions,user status,usage rate, and loyalty status. Benefits: Rotiz Inc. believes in providing benefits to the customers in the sense of HEALTH, HYGENE, and CONVIENCE. Occasion: They support their customers in their special occasions such as parties,meetings,get-togethers etc. User Status: They ensure through their qualitative product that they make their first time users gets converted into regular users. 4. Psychographic Segmentation: Its the segmentation of the customers based on their psychology,which includes personality, lifestyle and values. Life-style: They are mainly focusing on the life styles of working couples, floating population and hostelites and p.g students.

Targeting: It can be defined as a process of evaluation

and selection segments or a group of customer to cater our goods and services to that specific group.

 Targeting pattern: Rotiz Inc.are following partial product specialisation. It means they are specialised in only one product i.e is roti and in that they are offering different varieties.
Midd-midd Midd-upper Upp-upper

rotis

ready to cook

full meal

Positioning:It refers to depicting a distinctive place in the mind of

the customers. Rotiz Inc., follows product specialisation and channel specialisation.

BRANDING DECISIONS
Brand can be defined as a name,term,sign,symbol,logo, or combination of all done to differniate the product from the competitor as well as markerter. Brand name: ROTIZ INCORPORATION Brand Name Strategy: they are following the umbrella branding. Eg: Rotiz plain rotis, Rotiz - masala bhakris.

MARKETING STRATEGY. PRODUCT

Product can be defined as a physical object or service offered to the customer to satisfy their needs and wants. Our products fall under the category of non-durabilty. Classification of product.

Durabilty and tangibilty.

Consumer goods.

Shopping goods.

Industrial goods.

Convience goods.

STAPLE

IMPULSE

EMERGENCY

ROTIZ INCORPORATION

Packaging and Labelling:

Packaging: Packaging refers to the outer covering of the final physical product. We pack readymade rotis in microwavel pouches and each pouch will contain 5 rotis.

Labelling:

WE DELIVER YOUR CONVENIENCE

MFG. DT.: BEST BEFORE: INGRIEDIENTS: NUTRITIONAL VALUES: HOUSE NO: MRP: QUANTITY: MFG ADDRESS

PRICING
Price means value of products in terms of money. It is anything given in return of product. Rotiz Inc. follows Markup Pricing method. They simply add their markup on cost of production.

Markup Price =

___Unit Cost____ 1- Desired Returns on Sales

PLACE
Place refers to the Distribution Channel. Distribution Channel means a set of interdependent organization involved in the process of making goods available for the use of final consumers. It is a pathway through which product reaches to the final consumer.

Physical

Door-toDoor On Parlors

Virtual

On Click On Call

Rotiz Inc. at the distribution channel,is following two types of distribution. The two types of the distribution are Physical channel and Virtual channel. The physical channel deals with Door-to-Door service and Parlors. Door-to-Door refers to the home delivery as per order by our delivery boys. On the other hand, customers can also get our product from parlors. Virtual channel deals with getting orders on our official website. We will deliver the product as per customers demand.

PROMOTION
Promotion includes various elements like Publicity, Sales Promotion, Public Relation, Advertisement, etc. These all together forms Promotion Mix. In Pre-launch campaign, Rotiz Inc. will do Road Shows at HotSpot, will distribute leaflets, pamphlets. And will also give advertsiments on Radio stations like Radio Mirchi. Post-launch campaign includes regular advertisements in Newspapers and Bills.

PEOPLE
Here people can be defined as the general staff or employees of organization. Rotiz Inc. basically hygiene and convenience of the customers oriented company uses more of machinery rather than human power. So we include in all 17 employees from top to bottom controlling from the production process to the final distribution of Rotis to the final consumer. The employees includes 10 laymen, 2 Sales Executives, 1 Supervisor and 4 operators.

PROCESS
Process refers to the system from where customer interact with the service provider to the point customer receive his services. So here, in case of direct order from customer, we are going to have continuous

production system because customer will order the Rotis and we will make and pack the Rotis and deliver to the desired place of customer. In another system, we will produce the predecided number of Rotis and get it deliver to the distribution centers. So that, customer can access easily. In this entire process, our concern would be Less time between order to delivery. Ease of ordering for customer with the help of various systems like SMS, Internet, Calling. Quick response from the order taking personnel. We will ensure that our delivery man are well verse with the Geographical area.

FINANCIAL ANALYSIS
FIXED COST: PARTICULARS Roti Making machine Grinding Machine (2 machines) Dough Mixer Diesel Generator Set Computers Mobile Internet Connection Installation Cost Tempo (PIAGGIO) Salary Chimney Furniture Web-Hosting and Web-Designing Water Tax Electric Consumption Depreciation Total VARIABLE COST: PARTICULAR Raw material - Wheat - Salt - Oil Uniforms Petrol -PIAGGIO -Bikes Total

AMOUNT (IN Rs.) 11,50,000 50,000 4,50,000 1,00,000 50,000 60,000 5,000 25,000 2,25,000 14,82,000 20,000 40,000 10,000 5,000 16,02,000 5,03,750 57,77,750

AMOUNT (IN Rs) 64,80,000 5,400 2,34,000 20,000 64,800 1,51,200 69,54,400

Explanatory Note: (A) Raw Material: 1) WHEAT Per day consumption: 40000 rotis (20 000 morning + 20000 evening) For making 40000 rotis, we require 1000 kg wheat per day. As per our production capacity, we can produce 5000 rotis at a time. We are buying 1 kg wheat @ Rs.18. 1kg - 18 Rs 1000kg ? 18 x 1000 = 18,000 Rs per day x 360 days 64,80,000

2) SALT We require 1kg salt per day. 1kg salt costs Rs. 15. Therefore the annual consumption of salt is Rs. 5,400 (15 x 360). 3) OIL We require 6.5kg oil per day and 1kg oil cost Rs 100. So our annual consumption of oil is Rs. 2,34,000 (650 x 360). (B) Salary: Sr. No. Particulars

No. Salary Required 1 2 8 4 1 1 6

Yearly Salary

1. 2. 3. 4. 5. 6. 7.

Supervisor Sales Executive Worker Operator Driver Flour man Delivery boy

10,000 1,20,000 7,000 1,68,000 4,500 6,000 5,000 4,500 5,000 4,32,000 2,88,000 60,000 54,000 3,60,000

(C) Depreciation: We have calculated 25% depreciation on the following items: PARTICULARS AMOUNT (IN Rs.) Roti making machine 2,87,500 Grinding machine 12,500 Dough Mixer 1,12,500 Diesel Generator Set 25,000 Furniture 10,000 Tempo 56,250 5,03,750 Total (D) Break Even Analysis: BEP (Break Even Point) = FC (Fixed Cost) / Contribution Contribution Per Unit = Selling price per unit VC per unit (Variable Cost) Number of units = 40,000 per day Fixed Cost = 57,77,750 Variable Cost = 69,54,400 Sales: 40000 x 3 (SP) = 1,20,000 per day x 360 days 4,32,00,000 Annual sales Contribution = Sales VC = 4,32,00,000 69,54,000 = 3,62,45,600 Therefore per unit Contribution = 3,62,45,600 / 40,000 x 1 360 = 2.51 VC per unit = 69,54,400 / 40,000 x 1 360

= 0.48 BEP (in units) = Total fixed cost / Contribution per unit = 57,77,750 / 2.51 = 23,01,189 units BEP (in Rs.) = 23,01,189 x 3 = 69,05,677 In short, to reach at BEP we should sell 6,392 (23,01,189 /360 days) rotis per day.

SWOT ANALYSIS
Strengths: Focus on health and convenience. Well conceptualize product. Proposed Strong Distribution Network. Maintainence of Quality by State of Art technology. Automatic Roti making machines. Trained Personnel. Weaknesses: Newly Established unit. Low scale of operation at initial stage. Dependence on existing distribution channels. Oppurtunities: Huge potential of demand. Increasing Pressure on Working people for extended job hours. People spend more time on Intellectual endeavours as compared to Domestic endeavours (Working Women). Increasing numbers of nucleus families. Increasing number of floating population. Increasing number of middle-middle and higher-middle class. Increased conciousness among Educated class related to health and hygiene. Threats: Home made rotis are threat. There may be a fear of competition at later stage. Competition from frozen foods like parathas. Restaurant and Khana Khazana chains.

PEST ANALYSIS
Political: No specific licence is required. Only approval from food and drug department and shops and establishment act is required. Economical: Easy availability of finance. Booming economy, GDP growth rate is increasing. Increasing Income, Changing Pattern of Spending on food items as they are becoming health concious. Social: Changing pattern of society from Joint family to Nuclear family. Changing role of Women in Household decision making. Increasing literacy. Non-availability of trained cook. We are living in ICE age and therefore domestic work has taken back seat. Technological: Speed, Cost availability. Speed will be ensured that Roti making machine (5000 rotis per hour) Cost will be able to minimize with good quality. Untouched Processing.

VALUE CHAIN ANALYSIS

Firm Infrastructure Human Resource Management Technoloigical development Procurement
MARGIN

Inbound Logistics

Operations

Outbound Logistic

Marketing Services and Sales

PRIMARY ACTIVITIES: Primary activities are those activities which are essential to perform for any manufacturing unit. These activities include entire process from buying raw material to providing sastifcatory services to our customers. There are 5 main activities as follows: 1) Inbound Logistic: This activity reflect managing the raw material and machineries coming inside Rotiz Inc. like Wheat, Salt, Oil, roti making machines, grinding machine, dough mixer, DG Set, etc. It suggests that all the material is required to Manufacture roti for example Rotiz Inc. is using A.V. Engineering Roti making machine in preparing rotis. It is a reliable supplier for Rotiz Inc. operation. 2) Operation: Its related with the process of converting raw material into final rotis. Here, Rotiz Inc. take care that entire process is carefully handled so that, the quality of final Rotis is not deteriorated.

3) Outbound Logistic Its related with the activities includes in managing the final product. Rotiz Inc. is not keeping any stock in warehouse. We deliver rotis on daily basis as per the daily demand. We have door-to-door service by our delivery boy and we also have transportation facilities i.e. tempo which facilitates parlors by our rotis. 4) Marketing and Sales These activities related with the marketing and sales of Rotiz Inc.. Rotiz Inc. is doing prelaunch campaign to market its products. It includes Road shows, Sponsoring Events like Jagjit Singh Gazhals. Ad on Radios. We sell our product through distribution channel which is mentioned earlier. 5) Services After delivering the rotis, we entertain the feedback and suggestion from the customers and also try to solve their difficulties. We also provide service of emergency service of rotis for which we take extra delivery charges. SECONDARY ACTIVITIES: These activities are done to add values to the primary activities so that primary activities can be performed accurately. To deliver satisfaction, following secondary activities are done: 1) Firms Infrastructure Firms infrastructure includes proper light, ventilation, power facility. Rotiz Inc. provides proper work environment to their employees. The processing plant is well-ventilated. The arrangement of equipments in the plant are well organized.

2) Human Resource Skilled and Loyal Human Resource is a valuable asset for any organization. Personnels adds the real value. Rotiz Inc. is employing and established by well qualified persons. They believe in delivering the value through conveniency of customers. 3) Technology Development It reflects the usage of technology by the organization. Rotiz Inc. is using the ultra modern technology such as automatic roti making machine which reduces the human efforts. 4) Procurement It refers the activity which includes purchasing of raw-material and machinery from suppliers. Rotiz Inc. is taking care that good quality of raw-material is used for making rotis. In sum up, in the above diagram, the Margin represents the profit which we get by delivering Value to the customers.