Cane O La- A Juicy Endeavor

By:
Atit Kapasi- 85
Manan Mehta- 102
Aashka Parikh- 111
Jigar Shah- 124
About Cane-O-La:

Our business proposition is based on a Bangalore based existing company called

“Can-O-La” which serves fresh, hygienic sugarcane extract. It serves in various
flavors suiting the taste buds of the current generation. It is moderately priced
between Rs 10-15 as per the flavor.

CANE-O-LA Sugar cane juice is produced with the best quality sugarcane that is
organically grown especially. CANE-O-LA use scientifically designed equipment
at a central warehouse cum pre-preparation kitchen to select clean and peel the
sugarcane before transporting it in refrigerated containers to their destination.
CANE-O-LA Sugar cane Juice is extracted only when required by a single pass of
the pre-chilled sugarcane thought a crusher. Utmost care has been taken at all
stages to ensure that every glass of our sugarcane juice maintains its nutrient
value, purity and freshness.

The business model is volume driven as it is about offering a moderately priced

mass product- hygienic sugarcane juice.
Clean, Fresh, Healthy & affordable Juice:

COST EFFECTIVENESS

Considering the efficacies of CANE-O-LA Sugarcane juice and its usage, the cost
is quoted at the reasonable price which is affordable by all consumers. Not
Considering the Cost of flavors etc.

USE / ADMINISTRATION

CANE-O-LA Sugarcane juice is directly consumed after juice is extracted only

when required by a single pass of the pre-chilled sugarcane through a crusher.
Utmost care has been taken at all stages to ensure that every glass of sugarcane
juice maintains its nutrient value, purity and freshness.

Production of CANE-O-LA Sugarcane juice

Strict quality control in ensured through every phase of the crop selection of
Sugarcane to the end produce. Every sugar cane crop which goes into the making
of juice is collected by individual collectors. Samples of each crop thus procured
are subject to rigorous laboratory tests to ensure high quality. Following which
crop is stored, peeled and stored in the most hygienic environment. Thus at every
level, the production is documented and is verifiable at every stage of the process.

Fulfillment
The Technical and Service Team Acts responsibly by providing healthy, natural
and hygienic DESI refreshment to the customers. The technical and service team
offer care and disseminates information to all customers regarding CANE-O-LA
Sugarcane juice and it contents etc. Customer satisfaction is fulfilled.
Healthy Juice:
COMPOSITION:
Values per 100
gms edible
portion
PARAMETER VALUE
Water 70 to 75%
Sucrose 11 to 16%
(avg.=13.0%)
Reducing
0.4 to 2%
Sugars
Organic Non-
0.5 to 1%
sugars
FOOD VALUE
Moisture 90.20%
Protein 0.10%
Fat 0.20%
Minerals 0.40%
Carbohydrates 9.10% - 100%
MINERALS & VITAMINS
Calcium 10.0mg
Phosphorus 10.0mg
Iron 1.1mg

Calorific Value 39

CANE-O-LA Sugar cane juice is produced with the best quality sugarcane that is
organically grown especially.

CANE-O-LA use scientifically designed equipment at a central warehouse cum

pre-preparation kitchen to select clean and peel the sugarcane before transporting
it in refrigerated containers to their destination.

CANE-O-LA Sugar cane Juice is extracted only when required by a single pass of
the pre-chilled sugarcane thought a crusher. Utmost care has been taken at all
stages to ensure that every glass of our sugarcane juice maintains its nutrient
value, purity and freshness.
CANE-O-LA Sugarcane juice is a high-energy drink that is natural, sweet and is a
healthy alternative to refined sugar added drinks. It quickly replaces lost energy in
the most arduous of circumstances.

CANE-O-LA Sugarcane juice has many medicinal properties. It strengthens the

stomach, kidneys, heart, eyes, brain and sex organs, many people are recognizing
the benefit of sugarcane juice in providing positive well being with health benefits.
Sugarcane juice is used as a commonplace remedy for fevers, genitor-urinary
disorders, jaundice and thinness.

CANE-O-LA Sugarcane juice is popular with sportsmen and women who are
looking to top up their levels of muscle glycogen. Sugarcane juice is a more
effective way of replacing this carbohydrate energy than refined sugar based soft
drinks, particularly for endurance training / events.

CANE-O-LA Sugarcane juice has great reasons to switch to nature's recipe for
good health. Which is a totally natural, Healthy and hygienic DESI refreshment
produced for the first time as part of the sugarcane movement.
Cane-O-La- An effective Business Proposition:

USP of a business makes the business an excellent potential in terms of

acceptability to masses as well as commercial viability.

Clearly, the USP of the product is hygienic sugarcane juice.

Absence of a player in this segment will make it rock.

Cane O La believes new customers and retaining existing ones is an art of living.
Customer service is more than just keeping customers happy. It's about revenue,
because a lost customer means lost revenue and an unhappy customer can damage
its reputation and brand image.

Some aspects of effective customer service are:

• knowing our customers' needs

• identifying our key service activities
• delivering superior service
• Follow-up
In a competitive marketplace it makes sense to aim to provide superior service.
Customers base their purchasing decisions on the service they receive, not just
price, quality and availability Cane-o-la's research studies indicate that the level
and quality of customer support was the top-ranked factor driving repeat purchases
by customers. Enterprises using online solutions for their Customer Service
Surveys are able to employ event driven surveys, increasing the frequency and
consistency in which highly valued criteria, such as quality and speed of service,
are measured. Cane-o-la has continuous up-to-date customer feedback to obtain
in-depth information about the customer service operations. By using Customer
Service Survey solutions, relevant customer information can be incorporated into
automated online surveys enabling more personalized questionnaires and more in-
depth analysis. Cane-o-la has pioneered in

• Helping customers in location of business point.

• Development in Business point.
• Standard operation procedure.
• Stock management.
• Staff Training/management.
• Business strategy.
• Post-Sale Customer Follow-Up.
• Service Parts.
It is this integrated customer centric approach that makes Cane-O-La an effective
business set-up.

Sugarcane Juice- A Business Opportunity:

Absence of a player involved in offering a healthy sugarcane juice is the greatest

incentive to start up this setup.

Catering is a business. And, just like many other businesses there are always new
and exciting growth opportunities. It could be something like expanding our
market area or increasing the services we offer” Food, Juice etc., is definitely the
star in the catering world, but it's only one part of the equation. As most of the
catering companies have moved toward the full-service, event-planning model, the
focus has morphed. It's not that juice & food is no longer a focal point, but rather
that it is part of a broader mission. We firmly believe that catering is about
satisfying all the senses:

• Sight
• Hearing
• Touch
• Smell
• Taste
With the right atmosphere, we can appeal to all of these senses in a way that
makes an event special and memorable. Of course, beautifully prepared sugarcane
juice can appeal to sense of taste, smell and sight - perhaps even touch but it
shouldn't outshine the rest of the event. We want every piece of the puzzle, from
the decor to the glassware, to have that same kind of impact. From flatware to
flowers, lighting to linens and tables to tunes, everything should complement our
sugarcane juice to create a unified overall experience. According to us, continuity
is the key. Every customer wants every aspect to be in sync with each other. For
example:

• Does the venue fit the occasion, climate and group size? No matter how
lovely the surrounding gardens, we probably wouldn't want to have
formally attired guests dining outside in 98-degree weather.

• Does the menu fit the occasion and tastes of the group?

Geographic Spread:

We have conducted market research to understand the potential of a health juice

like sugarcane juice. We discovered that the demand for it is best and
commercially viable at areas pre-dominant with commercial and academic
institutions.

Geographically, the business can extend to a city like Mumbai. This is a city
where shanties and sky-scrapers co-exist. People of every segment live in
Mumbai. This, in it self makes Mumbai a unique market for a popular mass
product like sugarcane juice.

The targeted areas include commercial and educational pockets of the city. The
product is an impulsive purchase product which will attract office executives and
students.

Targeted areas hence include:

Commercial:
Nariman Point
Fountain
Cuff Parade
Churchgate
BKC
Andheri (E)
Powai
Malad
Lower Parel
Worli/Prabhadevi

Educational:
Matunga- Welingkar, Podar, Ruia, Khalsa, VJTI, UDCT, Don Bosco, SIWS etc
Vile Parle (W)- NM College, Mithibai, NMIMS, D.J.Sanghvi, Bhagubhai etc
Kandivali (E)- Thakur
Andheri (W)- Ritumbhra, Bhavans, S.P.Jain etc
Bandra (W)- National, MMK, Thadumal etc

Key Parameters:

• Hygiene-
The Peeler Machine is the most advanced and the only one of its kind in the entire
country. The Sugarcane Extracting Machine is manufactured with 316 L grade,
acid proof stainless steel, and is the first of its kind in India. The machine has been
imported from USA and facilitates smooth operations with the production of fresh
sugarcane juice in a single pass. For patrons who would like to use ice, our
facility provides food grade ice produced with water purified by reverse osmosis,
manufactured in the world's leading ice maker. The employees will be thoroughly
trained in quality control, hygiene and customer service as well as equipment
maintenance.
 • Different, innovative flavors-
We will serve fresh cane juice in many flavors including classic plain, mint,
ginger, lemonade, pepper, sweet & salt.

• Low cost of sourcing-

Sourcing directly from the wholesalers keeping the cost of sourcing low

• Medium margin, yet keeping the volumes high

• The structure of the set-up to make it look hygienic
• Smart looking, young executives

Investments:

It is a low investment business.

Capital Exp
License 50000
Machine (2) 120000
Fridge (3) 45000
Initial Set-Up Costs 200000
Total Investment 415000

No cost of land acquisition as it is on rental basis.

Operational Team- Face of Cane-o-la:

A team of 9 people is required- 4 executives, 4 workers and a manager.

The executives will be involved in customer interaction either at the payment
counter or serving counter. The workers will be involved in the core extraction
process which is visible to the customer through the glass but it lacks any
customer interaction. The manager will be responsible for the daily routine of the
business.

Manager (Requirements & Roles):

• Will be responsible for all Sales & Marketing activities across India.
• Position to be based in Bangalore.
• Preferred candidate should be a MBA.
• Experience: minimum of 3-4 years in FMCG.
 • To plan and procure catering orders from Public sectors, group gathering,
malls, institutions, I.T sectors etc.,
• To fix targets and execute on every fort night.
• To co – ordinate with other department.
• To plan and execute all catering event.

Executive:

• To submit stock and sale statement on 1st of every month.

• To attend all minor and major break down at all franchisee outlets,
warehouse etc.,
• To give maintenance service on regular basis.
• To co-ordinate with other departments.
• To Issue and collect materials on request and demand.

Workers:

• To receive catering order, plan and execute.

• To do spot inspection before catering.
• To collect payment after catering.
• To organize, train and execute all catering staff members.
• To submit fort night report.
 Financial Projections

We have assumed two scenarios for each year- A Base Case and Best Case.

The Best Case assumes a higher volume of glasses sold.

A local sugarcane juice player is selling around 300-500 glasses a day, depending
on the area.

Financial Projections & Analysis

Sales
Projections: Year 1 Year 2 Year 3 Year 4 Year 5
Volume/Day 250 300 300 350 350 400 400 450 450 500
SP 12 12 12 12 13 13 13 13 14 14
Total Sales daily 3000 3600 3600 4200 4550 5200 5200 5850 6300 7000
109500 131400 131400 153300 166075 189800 189800 213525 229950
Annual Sales 0 0 0 0 0 0 0 0 0 2555000

Costs (Annual):-
Variable Costs:
RM 152083 182500 200750 234208 255500 292000 316333 355875 383250 425833
Electricity 136875 164250 164250 191625 191625 219000 219000 246375 246375 273750
Fixed Costs:
Rent 388500 388500 388500 388500 388500 388500 388500 388500 388500 388500
Salary 456000 456000 501600 501600 551760 551760 606936 606936 667630 667630
Marketing &
Promotion 30000 30000 20000 20000 20000 20000 20000 20000 20000 20000
Others 20000 20000 20000 20000 20000 20000 30000 30000 30000 30000
118345 124125 129510 135593 142738 149126 158076 164768 173575
Total Costs 8 0 0 3 5 0 9 6 5 1805713
Taxes 0 0 0 0 81678 142359 111031 170647 197311 262250

Net Profits -88458 72750 18900 177067 151687 264381 206200 316917 366435 487037
Assumptions:

Raw Materials:

RM Costs: Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
No of glasses per sugarcane 6 6 6 6 6
Rate per sugarcane 10 11 12 13 14

After consulting 6-7 local sugarcane players, we concluded that each sugarcane
stick can give 7-8 glasses of sugarcane juice. On a conservative estimate we have
kept this at 6. The retail rate of a sugarcane stick is Rs 22 and the wholesale rate is
Rs 10. We have assumed an increment of this cost at Re 12 each year.

Space:

Rent:
Sq ft Area 175
Rent per sq ft 185
Monthly Rent 32375
Annual Rent 388500

Requirement is 175/sq ft. The Average rent per sq ft is Rs 185. This is arrived at
after talking to various existing players in the respective areas. We did not speak
to real estate brokers as they have been giving inflated rates which are misguiding.
The contract is a long term agreement of Five years so the cost remains the same
throughout the five year period mentioned above.

HR Costs:

Employees (10% increase yoy):

Executives 4 4250
Workers 4 3000
Manager 1 9000
Annual Salary costs 456000

A 15% increment in HR costs is assumed:

Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
45600 50160 55176 60693
0 0 0 6 667630
Electricity Costs:

Electricity Cost
No of glasses sold 200
Rate per unit 1.5
Total electricity cost 109500

On an average, cost of one glass is Rs 1.5. Hence, assuming the set-up runs
throughout the year, selling 200 glasses each day will result in total electricity cost
of Rs 109500. As the volumes increase, the costs increase proportionately.

Financial Analysis:

Ratios
ROI -21% 18% 5% 43% 37% 64% 50% 76% 88% 117%
NPM -8% 6% 1% 12% 9% 14% 11% 15% 16% 19%
FC per glass 9.8 8.2 8.5 7.3 7.7 6.7 7.2 6.4 6.7 6.1
VC per glass 3.17 3.17 3.33 3.33 3.50 3.50 3.67 3.67 3.83 3.83
10.6 11.1 10.2 10.8 10.0 10.5
Total Cost per glass 12.97 11.34 11.83 1 7 1 3 3 7 9.89
294. 282. 282. 306. 306. 298.
BE Pt (No of glasses) 277.4 277.4 294.0 0 7 7 9 9 1 298.1

Base case for Turnover

Best Case for Turnover:

Base case for Net profits:

Best Case for Net profits:

Cost composition (Base Case):

Cost composition (Best Case):

Future Growth:
We believe that Franchisee model is the most optimum model for accelerated
growth for our company.

The Franchisee models are to be replicated all over the country covering major
cities, towns etc. The Model of franchisee appointment is envisaged to be achieved
primarily through the appointment of Master franchisee in Each Region or State
and out sourcing the Franchisee appointment work including regulation, training
etc of the Franchisee and the monitoring of the Services offered by Franchisee to
the customers through these master Franchisees.

The structure of the Franchisee agreement:

• Franchisee shall carry out the business in the area selected and approved by
CANE-O-LA or Master Franchisee.
• Franchisee shall procure from CANE-O-LA or Master Franchisee and hold
the stock of all promotional and raw materials such as posters, banners,
icons etc., under their respective area.
• Franchisee should hold necessary trade license and other proceeding as per
the trade rules and regulation in their respective area.
• Franchisee should follow the style of operation, design of interiors,
machineries, equipments, crockery etc, as per guidelines given by CANE-
O-LA or Master Franchisee.
• Franchisee should procure machineries and others as per guides given by
CANE-O-LA or Master Franchisee.
• Franchisee should ensure proper training of all staff members under them
well trained by CANE-O-LA or Master Franchisee.
• Franchisee should follow the instruction manual or operation manual issued
by CANE-O-LA or Master Franchisee.
• Franchisee should ensure that a detailed history and data of all queries and
other information is maintained and the same to CANE-O-LA & Master
Franchisee on day to day basis.
• Franchisee should strictly follow the guidelines given by CANE-O-LA &
Master Franchisee and customer complaints should be attended in time. The
customer satisfaction level is to be intimated to the company. The software
provided by the company shall be maintained up to date.
• Franchisee shall have manager to monitor day to day sales, service and
maintenance etc.
• Franchisee shall inform any requirement of their outlet well in advance to
the Master Franchisee or company and ensure proper stock at all times.
They shall ensure the target fixed by the Master Franchisee and company.
They should also carryout the promotional activities of the product, in line
 with the company policy. All the infrastructural requirements should be
provided by them.
• Franchisee should meet the customer's demand, their satisfaction, catering
service etc., from time to time.

Inferences & Findings of Market Research

When you feel thirsty what do you normally

consume, if not water?

9 A.) Cold Drinks

23 B.) Fruit Juices
C.) Sugarcane Juice
D.) HealthJuices

13
Doyou feel secure consuming sugarcane
juice from the roadside vendors?

Yes
No

42

Areyou willing to pay extrafor sugarcane

juice produced in ahygienic, healthy and
clean environment?

21
Yes
No
29
 What could be the price of this hygienic
sugarcane juice

8 13
A.) Rs. 10
11
B.) Rs. 12
C.) Rs. 14
18
D.) Rs. 16

Doyou like the ideaof eating snacks along

withsugarcane juice?

Yes
No

46
 Group Members- Contribution

Manan Mehta:
• Market research (Mumbai- Fort, Andheri E, Malad, Powai, Worli)
• Tabulation & Analysis of Market research
• Financials (modeling)
• Assembling the PPT

Aashka Parikh:
• Market research- Vendors (Mumbai- Bandra, Peddar Road, Nariman Point &
Gujarat)
• Tabulation & Analysis of Market research
• Financials (modeling)
• Formation of Report

Atit Kapasi:
• Market Research (Mumbai- Vile Parle, Malad, BKC & Bangalore)
• Financials (modeling)
• Formation of Report

Jigar Shah:
• Market research (Mumbai- Matunga, Sion, Andheri W, Kandivali)
• Technical (Internet related & preparation of graphs)
• Assembling of PPT
 Appendix

Questionnaire

1.) When you feel thirsty what do you normally consume, if not water?

A.) Cold Drinks

B.) Fruit Juices

C.) Sugarcane Juice

D.) Health Juices

2.) What purpose according to you does sugarcane juice serve?

A.) Quenches Thirst

B.) Refreshing

C.) Time Pass

D.) No purpose
3.) How often do you consume sugarcane juice?

A.) Once a Fortnight

B.) Once a Month

C.) Frequently/Randomly

D.) Hardly

E.) Never

4.) Do you feel secure consuming sugarcane juice from the roadside
vendors?

Yes No

5.) Are you willing to pay extra for sugarcane juice produced in a hygienic,
healthy and clean environment?

Yes No

6.) What could be the price of this hygienic sugarcane juice?

A.) Rs. 10

B.) Rs. 12

C.) Rs. 14

D.) Rs. 16

7.) Do you like the idea of eating snacks along with sugarcane juice?

Yes No