ABC Trading Pvt. Ltd.

Paldi, Ahmedabad.

Service sector

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Executive Summary
ABC Trading Pvt. Ltd. is Ahmedabad Based Trading Company. ABC Trading emphasis will on Supply Chain of Mineral Water in Indian Railway. ABC Trading will supply Packed Qualitative Mineral Water Bottle of 1 liter to the end customer in Indian railway (Train). Additionally, this service will be provided for all major states of India.
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Executive Summary
Objectives To provide Qualitative mineral water in Indian railways. To fill the gap of supply in mineral water in Indian railways. To provide low cost mineral water bottle so that every traveler gets water to drink, considering all class of people. To increase sale and earn a profit of at least 20 lakhs/ month. Mission Statement To help travelers with a basic need i.e water. Providing qualitative mineral water and subsidies rates, so that no one remains thirsty. Capture whole Indian Railway to sell a basic need in a basic price.
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Executive Summary
Services ABC Trading will serve Cold Mineral Water Bottle in Indian Railways (Bailey mineral water) for Rs. 6, (whose M.R.P is R.s 15). Bailey is a well Known brand and is observed trust worthy in Indian market for mineral water. ABC Trading will provide Direct Selling to Passengers Traveling with Indian Railways. Direct selling will help Customers to fill the gaps for need of mineral water every time while travelling from one place to other.

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Executive Summary
Customers Customers of ABC trading will be all the Passengers of Indian Railways. ABC Trading is looking to cover 100 trains of Western Railway. Approximately 1 express/mail train consist the capacity of 1200 passengers reserved. I.e. the total audience market for ABC Trading will be 120000 customers/day. Management ABC trading will have a strong management team. Management team will consist of experienced Managers at different level to manage supply chain. Beside managers there will be 400 employees for direct selling. The criteria for recruiting the bottom employees would be those who are unemployed or is for a need of job.
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Industry Analysis
Future Outlook and trends
As Abc trading is selling mineral water bottle of bailey in 6 rs. The more demand for the product will be seen. The trend of the water bottle is been observed while traveling in a train. This is because people are more conscious for health specially when they travel from one place to another and so water plays an important role in one way or other.

Analysis of competitors
There are many branded and non-branded brands available in the market for mineral water supply but for sale in train no one sells mineral water bottle of 1 litter less than Rs. 12.00

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Description of venture
Product
A mineral water bottle of 1 litter.

Service
Direct selling is been chosen as a strategy to sell the product.

Size of business
Each train will be provided with maximum 500 bottles of 1 litter, at initial level. Each train will have 4 nos. of direct sellers.
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Description of venture
Office Equipment
ABC Trading (company) will have the head office at Paldi Ahmedabad, from here all the activities will be managed.

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Operational Plan
o Bailey (mineral water company) will deliver the bottles at Ahmedabad railway station to our executive . o Operation manager will be responsible to get the consignment and manage to divide them into box of 500 bottles differently for each train. Operational manager will be reporting General Manager. o From 4 direct sellers, one of them will also role as a leader, who will be responsible for collecting respective consignment and distribution of same o Control manager will be responsible for the sales data every day and reporting to the operational manager.

Name of suppliers
At initial level only Bailey pvt. ltd. would be the supplier.

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Marketing Plan
Pricing
The price of 1 litter water bottle would be Rs.6 for end consumers. Bailey will provide per bottle for Rs 3.5/ bottle. If Abc Trading will sell each bottle for Rs. 6 than Rs. 2.5 would be the profit for each bottle sold.

Distribution
400 direct sellers (employees) will be used as a supply chain for connecting the distribution sales in 100 western railway trains.

Promotion
Rs.6 subsidy for each bottle is given by ABC trading private ltd. to all the consumers to promote sales of Bailey as a brand.
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Organizational plan
Form of Ownership
Individual

Flow Chart
Branch Manger

Human resource Manager

Finance manager Manager

Operational manager Manager

Admin staff

Accountant

Control Manager

Direct Sellers

Assessment of risk
Swot Analysis
Strength
Huge number of audience customer available. No need to market the brand. Huge demand Basic need Can be stored for at least 1 month

Weakness
More than 400 employees to manage. Huge sales to operate Controlling can be difficult.

Assessment of risk
Opportunity
Huge market. Gaps between demand and supply has been observed. No competitor in same price segment.

Threat
Many illegal unions. Government policies.

Assessment of risk
Contingency Plan
If we do not succeed as planned than, ABC Trading will try to do the same deal with IRCTC. Else will try to capture northern railway or southern railway. Or will change the supplier, if needed.

Financial Plan
Cash Flow Projection
Revenue :
Sales : 50000 bottles *rs.6 = Rs. 3,00,000/day Payment to bailey : 50000 bottles *rs. 3.5 = Rs. 1,75,000/day Profit per day = Rs. 1,25,000 Profit per month = Rs. 1,25,000*30 days = Rs.37,50,000 Payments per month 400 direct sellers = Rs.3500*400= 14,00,000 2 Human recourse manager = Rs. 25000*2= Rs.50000 3 Operational manger = Rs. 75,000 3 Control manager = Rs. 75,000 General Manger = Rs.35000 Other staff = Rs. 65000

Cash Flow Projection

Total revenue = Rs. 37,50,000 Total payments = Rs.17,50,000 Tentative Profit: Rs.20,00,000 Break even Analysis
Total payments = R.s 17,50,000 Profit per bottle = R.s2.5 So break even of sales of bottles : 7,00,000 bottles/month Expected sales per month : 1500000 bottles/month

Sources of Application of Funds

2 months credit from bailey will be taken. 50,00,000 rs. Safety Deposit to the bailey pvt ltd. will be raised by own source of capital funds available.

Thank you