PGDM

TRIM
VI
PROJEC
T
200709

PANKAJ PANIPURI WALA

Report By
Niranjana Narasimhan
Garima Tamarakar
Pooja Khatiwala
Sangeetha.S

Creative Effective Organisation

Table of Contents
PANI PURI....................................................................................................................................................3
Introduction...............................................................................................................................................3
Pankaj Paani Puri Wala.................................................................................................................................4
About The Business...................................................................................................................................4
Objective of study......................................................................................................................................5
Business Plan.................................................................................................................................................6
Vision Statement........................................................................................................................................6
The People.............................................................................................................................................6
Business Concept..........................................................................................................................................8
New Opportunity.......................................................................................................................................8
Picture of Thela.....................................................................................................................................9
The Existing Business Processes Of Pankaj Pani Puri Wala......................................................................10
New Consistent Business Focus..................................................................................................................11
The Areas / Processes Change.................................................................................................................11
The USP Of This Business.........................................................................................................................13
Capable Management..................................................................................................................................14
Action Plan..................................................................................................................................................15
Business Processes To Create High Growth & Competitive Edge.............................................................16
Projection for Five Years.............................................................................................................................17
Market Feasibility Study.............................................................................................................................18

PANI PURI
Introduction
We Indians love our snacks. Jhal Muri, Batata Puri, Pani Puri, Bhel Puri, Delhi Chaat, Kolkata Chaat, Mumbai
Chaat, Aloo Bhajji, Dal Puri, Bada Samosa, Chota Samosa, Kachori ...man, snacking itself is a gastronomic delight
in India. Pani Puri ,one of India's favorite snack. The word "Pani" means water and "Puri" is puffed Indian bread. It
is surely an experience eating Pani Puri. This popular Indian snack is also called Gol Gappa. The Puri is a 1 inch
puffed round Puri which is fried and filled with potato and/or green lentils and tamarind chutney and the Pani Puri
(mint) water.
Pani Puri walas are probably the smallest format of retail. They just sell one item: Pani Puris and that too in may be
not more than couple of variant i.e. khatta or meetha (sour or sweet). Format is simple, you stand around the stall
and you are given a disposable bowl made up of dried and compressed leaves. So by eating a Pani puri you are not
impacting the environment in anyway, unlike the more sophisticated places where you get disposable holders made
up of paper, plastic or thermocol, all of which have a degrading impact on the environment. You will be served
Pani puris in turns, and the last Pani puri is usually a dry one. You can ask for extra water at the end if you like
having an extra serving of it at no extra cost.
The outlet or the stall occupies around 1ft X 1ft space on the floor and about 3ft X 3ft space on the platform. The
way the compact space is managed is an excellent example of optimized space utilization. In that small space they
have some thousand odd Pani Puris, which are stacked in such a way that these fragile beings are not hurt and lost.
It is probably a good example of how packaging should be done. Along with this are at least three large vessels
containing the yummy water in two varieties and filling of potatoes and chhole or chick peas. There is a box
stacked on top of these vessels somewhere that stores the masalas.
The typical turnover per day is about 800-1000 Rs a day for a strategically located stall. Owning a stall costs
around 2000-2500 Rs. Pricing of the items is interesting, a plate of Pani puri is always priced at Rs 10/-, and what
changes from vendor to vendor or rather location to location is the no. of puris that you get for that 10 Rs. Now is
this not an interesting pricing model, where the price point is fixed, no matter where you eat across the city, but
depending on my costs and advantage points I change the quantity that I serve. The price point is small enough to
attract repeat customers from every strata of society every time the stall is in their sight.

Pankaj Paani Puri Wala

About The Business

*Involved in the Chaat business for the past 2 generations
*Expanded to include a Sandwitch shop in the same area
*Party orders undertaken
*Retailing of Pankaj Chaat masala in the shop premises

Currently Pankaj Paani Puri Wala has one paani puri and one sandwich shop in Matunga. His shop
is well known and popular among all age groups. Apart from paani puri he sells paani puri masala and
puri as well. His initial investment has been to the tune of Rs. 10,000 ( 2 generations back). His
observation reveals that his customers are not very price conscious. They are willing to pay a
premium for quality. His sandwich shop (also located along the road) is always crowded, despite
having sandwiches priced as high as Rs. 60. The reason for this, according to Pankaj, is the location
(with its predominantly affluent people) and the quality of his wares. Being located near colleges
gives him a favourable location and the good quality of food, enables him to keep prices marginally
higher. He Plans to expand. With hiking rents, he wants to use movable carts that sell food and wants
to place them in strategic locations such as railway stations, colleges, schools across Mumbai.

Objective of study
Our business proposition is based on the roadside chaat and paani puri business. We have studied the
business prospects of Pankaj Paani Puri Wala and have developed the plans to expand the business with
further refinement.

Business Plan
Vision Statement
Hygienic, branded paanipuri, on the move.. Everywhere

The People
All age group in urban and rural India

Business Profile
To study market feasibility of paani puri business & develop the plan to expand the business of Pankaj
Pani Puri Wala with further refinement.

Economic Assessment
Our market research showed us that people love to eat paanipuri on roadside carts but they have
concerns about the hygiene. Though paanipuri is also available in high end restaurants, the taste
invariably is not the same. Moreover, people dont want to go to a restaurant especially to have
paanipuri. Paanipuris are generally impulsive buys and when people are made to wait to have some,
they invariably lose interest. Also, there is a certain charm associated with the way paani puri is being
served in these stalls and that is absent in a restaurant. Though people dont mind eating paanipuri on
roadside cart, the hygiene factor plagues their mind. Our market research also showed us that people are
willing to pay a little extra if they could get the same taste with better hygiene on the move. This is the
basis of our business model and we are trying to tap the need of taste with better quality and hygiene.

Investment Assessment For One Year

INVESTMENTS

Duration

Cost of Cart (5 carts)

Emergency Lamp
Cost of Ingredients :
Packaged Water and Ice
Vegetables
Puri, Masala
Ingredients like Bundi, Curd,
etc
Labour
Electricity Charges
License Charges
Capex
Total

One time Cost

One time Cost

P&L A/C

Duration

Sales
Cost Incurred
Cost of Carts depreciated for
5 yrs
Emergency Lamp depreciated
for 5 yrs
Cost of Ingredients :
Packaged Water and Ice
Vegetables
Puri, Masala
Ingredients like Bundi, Curd,
etc
Labour
Electricity Charges
License Charges
Capex
Total Cost
Net Income

Per month

Per Day
Per Day
Per Day
Per
Per
Per
Per

Day
Month
Month
6 months

In Rs

Annual Cost

100000
1000

100000
1000

75
200
60

23475
62600
18780

40
2000
200
500

12520
24000
2400
1000
245775

In Rs

Annual (In Rs) Yr.

0

40000

480000
8334
200

Per Day
Per Day
Per Day
Per
Per
Per
Per

Day
Month
Month
6 months

75
200
60

23475
62600
18780

40
2000
200
500

12520
24000
2400
1000
0
144775
335225

15250

Business Concept
According to our Market Survey, most people enjoy road-side food and they frequent these places atleast
2-3 times in a week.So in terms of Sales Volume, the business is effective.
According to the Survey, people eating Road-side food enjoy the taste but are worried about the Hygiene
factor. We want to incorporate Hygiene factor in our Pani-puri business, keeping the taste same.
Perception : A lot of people get convinced about the quality and hygiene if it is promised by an
established brand. We want to serve branded Pani-puri (similar to Jumbo Vada pav) so that people trust
what we promise to deliver.
Problems with the Thela
The Thelas used at present by the road-side vendors are mostly made of wood.
They are not cleaned often and look dirty and unappetising
Using such Thelas might cause a fall in the hygiene standards that Pankaj strives to maintain
So, he wants money to buy Thelas that meet the requisite hygiene standards .This is where we invest
money.

New Opportunity
We are trying to brand this roadside delicacy, so that opportunities open up in the future. One of the
opportunities we have spotted is to have branded road-side food everywhere, and create possibilities for
export of the same.
There are already restaurants like Chaat Paradise in the Silicon Valley. It is, in fact the Silicon Valley's
best-loved chaat restaurants. It serves chaat from all over northern India. The pani puri is one of the
highlights there.In case, we are able to serve Pani Puri in authentic Indian taste, in a similar way that it is
served in India, we see opportunities galore for growth, not just in the USA, but across various parts of
the world like Singapore, the middle east and Europe.

This is an excellent long term opportunity. We have spoken with Ganesh bhelpuri Wala from Pune, who
is into exporting. He has got manufacturing plant, catering services etc.

Picture of Thela

10

The Existing Business Processes Of Pankaj Pani Puri Wala

1. At Pankaj pani-puriwala, you go the the vendor, ask for Pani-puri

2. The vendor prepares fresh, customized pani-puri according to the Customers taste
3. Payment for the Pani-puri is made.

11

New Consistent Business Focus

The Areas / Processes Change

1.Payment management: There is no payment management system. A customer eats pani-puri and then
pays for it. Also, the person collecting money and the person making pani-puri are different.
In times of rush and crowd, the customer can escape without paying or may pay only for once if had
more and there is no way to find out.
Solution:
A Pre-payment Coupon System:
Here the Customer makes payment to the Cashier and gets a coupon.
Customer takes this coupon to the Pani-puri maker.
Only once the coupon is accepted, then the maker will start preparing pani-puri.

12

2. A Waste Disposal and Hygiene maintenance system, though present were a little archaic.
Solution:
a. The person preparing pani-puri wears disposable gloves, rather than re-use the rubber gloves.
b. A deal is struck with some suppliers for regular supply of good quality ingredients used in
preparation
c. A specialized Waste Disposal Container is designed similar to the ones in Mc Donalds where plates
can be thrown and no spillage will occur
d. A cleaner is kept to clean the eating area and the Waste Container area, ensuring cleanliness. Also,
spraying some insecticide in the area around the shop to keep un-infested with flies.

13

The USP Of This Business

The USP of the business is original paanipuri taste with good quality and hygiene. We propose to
introduce the concept of branded paanipuri in the lines of successful Jumbo VadaPav. This paanipuri
will be available on carts on the same streets, beachside, near colleges and malls.
We propose to design a standard cart with drawers and racks to store food ingredients. The paanipuri
wala will use hand gloves and mineral water. Our idea is to ensure a high level of hygiene while
preserving the taste. The price will not be very high. Currently paanipuri on such carts is available at Rs.
15/- per plate or lower. We will keep our price Rs. 20/- per plate. We plan to give these carts on rent and
pay them a fixed salary of Rs. 2000 /- per month. These attendants wont need to invest anything on their
own. Everything including the cart and ingredients will be provided. They will also attend a 2 day
workshop on hygienic maintenance.

14

Capable Management
Pankaj, the owner :
Will look after general business activities and provide training for the new joinees. In the first step we
plan to introduce at least 10 carts at various locations so there will be 10 attendants for each of these
carts. In the morning, they will prepare the ingredients together and in the evening they will go to their
specific locations for sale.
Niranjana Narasimhan ,the strategic Business Plan Head
Key Roles:
Business plans for Pankaj Pani Puri Wala
Making proposals for various projects
Garima Tamarakar, The IT head
Key Roles:
Developing software
Updating the MIS
Sangeetha .S, The Marketing Head
Key Roles:
Client Acquisition
Making process flow charts
Making changes in the processes whenever necessary
Trainer to marketing executives
Advertisement & Promotions
Pooja Kahatiwala, Project Manager
Key Roles:
Financial Projections
Financial analysis

15

Action Plan

16

Business Processes To Create High Growth & Competitive Edge

1. The USP of this business is hygiene

I.
Carts are made of stainless steel and they are cleaned up every day
II.
Attendant of the stall wears clean uniform (with the logo imprinted), a cap and
disposable hand gloves
III.
Good quality mineral water will be used
IV. Fresh vegetables and high quality ingredients are used
V. Stall will be placed in clean locations
2. Different locations based on peak time eg 2:00 PM to 6:00 PM in front of colleges and
afterwards near stations and offices
3. We aim to create a brand out of our paanipuri stall where hygiene and chaat will intermingle
to mean Pankaj in customers mind
4. Promotion at point of purchase
I.
Decorate the stall in a jazzy manner to attract customer attention
II.
Have music to create a pleasant environment
III.
Use mouthwatering aroma to instigate hunger pangs
5. The pricing strategy is slightly higher than the one prevailing in the market to convince
customers of the higher quality of the ingredients used.

Projection for Five Years

17

These are our projections regarding existing business model. Till fifth year if we achieve our target, we
plan to start exporting to various countries like US, UK as well.
INVESTMENTS
Cost of Cart (5 carts)
Emergency Lamp
Cost of Ingredients :

Annual Cost

23475

Vegetables

62600

Puri, Masala
Ingredients like Bundi,
Curd, etc

18780

Labour
Electricity Charges
License Charges
Capex

24000
2400
1000

P&L A/C

Yr 2

Yr 3

Yr 4

Yr 5

23475

23475

23944.
5

23944
.5

62600

62600

18780

18780

12520

12520

63852
19155.
6
12770.
4

63852
19155
.6
12770
.4

24000
2400
1000
1000
15330
9

24000
2400
1000
1200
15330
9

24480
2448
1020
1350
15620
4.5

24480
2448
1020
1500
15620
5

100000
1000

Packaged Water and Ice

Total

Yr 1

12520

245775

Annual (In
Rs) Yr. 0

2347
5
6260
0
1878
0
1252
0
2400
0
2400
1000
1000
1533
09

Yr 1

Yr 2

Yr 3

Yr 4

Yr 5

Sales
Cost Incurred
Carts cost depreciated
for 5 yrs
Lamp depreciated for 5
yrs
Cost of Ingredients :

480000

6240
00

84240
0

11793
60

16511
04

23941
01

8334

8334

8334

8334

8334

8334

200

200

200

200

200

Packaged Water and Ice

23475

23475

23475

23944.
5

23944
.5

Vegetables

62600

62600

62600

Puri, Masala
Ingredients like Bundi,
Curd, etc

18780

18780

18780

12520

12520

63852
19155.
6
12770.
4

63852
19155
.6
12770
.4

24000
2400
1000
1000
15330

24000
2400
1000
1200
15330

24480
2448
1020
1350
15620

24480
2448
1020
1500
15620

Labour
Electricity Charges
License Charges
Capex
Total Cost

200

12520
24000
2400
1000
0
144775

2347
5
6260
0
1878
0
1252
0
2400
0
2400
1000
1000
1533

18

Net Income

335225

09
4792
25

9
68909
1

9
10260
51

4.5
14949
00

5
22378
96

Market Feasibility Study

Question 1: How often do you eat road side food?
I.
II.
III.
IV.

Every day
Once or twice in a week
Once in a fortnight
Once in a month

According to the research done, almost half the crowd prefers eating raste ka khaana once or twice a
week and hardly 5 % of the crowd refrains from eating such food.
Thus it shows that most mumbaikars have developed an acceptable level of immunity which allows them
to freak out on the street fare as well!
Question 2: What changes do you want in road side stalls and their food?
I.
II.
III.
IV.

Ambience
Structure
Hygiene
Quality

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Majority of the respondent

(34%) feel that a change needs
to be brought about in hygiene,
followed by quality (32%) and
least importance was given to
structure.
Question 3: What proportion in
increase in price with respect to
improved quality is justified?
I.
II.
III.
IV.

< 2%
2-5%
5-10%
>10%

41% respondent are ready to pay 5-10% more with respect to improved hygiene and quality of food
offered by the vendors. Followed by 36% respondents who were ready to pay 36% more.
Question 4: Where do people prefer to eat Pani-puri ?

20