BUSINESS PLAN

SHALIMAR FOOD INDUSTRY

ANUJ SHARMA 2010MBE04 AYESHA BHAT2010MBE06

SHALIMAR FOOD INDUSTRY

SECTION 2: THE VISION AND THE PEOPLE ECTION 1: HE BUSINESS PROFILE
(Session 2): Describe convincingly that you are passionately committed to your new Shalimar Food Industry make inevitable hard choices. business in the local is about to begin its business and have the realism to

market by launching its first ever product in the market in the form of a mouth freshener named SHALIMAR. It is the first product of this company and it will be launched in the niche market firstly. The company Shalimar Food Industry has a single proprietor. It is basically a company which will deals in the eatables like Mouth Freshener firstly and then it will expand its business by entering into the other segments of product. The technology in making mouth freshener is based on science and art of manipulating various Ingredients, particularly to achieve special textural effects.
Targeted Market and Customers

THE PEOPLE

This Experience Related to My Intended Business kind of mouth freshener is a unique mouth freshener with Work specific flavor is your work experience to the business you plan to start includingfew (Session 2): Describe being extended in new variants. There will be a list of your skills and knowledge, which will be mint, pan and strawberry and it flavors available in the market i.e. required in your business. will have a good demand among children and adults. The variants are being available in pillow packs priced Re.1. In addition it will also available in the jars of 50 and 60 units each and it will be the wholesale package. This product has been initiated in a few selected markets, and will be extended domestically.
Growth Trends In This Business

The market of thisand Educationthis state is Personal Background product in Credentials

a growing market. As in of Article 370 so no national product manufacturer could set up its manufacturing plant here in this state and there are hardly 1 or 2 other products. So the market is in growing stage. There is a big market to be covered yet.
(Session 2):the residents are enjoying the benefits J&K we Describe yourself, including your education.

Pricing Power

(Session 1): Explain the unique qualities or circumstances concerning your product or service that will enable you to maintain profitable pricing.

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SECTION 3: HOME BASED BUSINESS ISSUES
1. Factors in Selecting the Business (Session 3): Describe your considerations for selecting your home business and list: 1. 2. 3. 4. 5. Your experience in the business Why appropriate for home based Your utilization of Internet and communications tools Home based zoning and licensing required Your competition

2. The Home Based Business Format (Session 3): Describe if the business is part-time (moonlighting) or full time. 1. If a full time business describe your preparations before quitting your job (see check list in session)

3. Operating personnel (Session 3: Describe the personnel who will be involved in operating the business including any family members. Describe participation and responsibilities.

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SECTION 4: FINANCING
Financing Aspects

(A) Fixed Assets Land and Building(own) (B) Machinery and equipment S.No. Description Quantity 1 Oven 1 2 3 4 5 6 FFS Mixer Heater Installation Cost 1 1 1 Value 1,85,000 1,80,000 3,10,000 16,000 1,00,000

Cost of Office Equipment and other Production Equipments etc.

50,000

Total cost of Machinery and Equipments (C) Pre Operative Expenses: Total Fixed Capital

Rs. 8,41,000 Rs. 30,000

Rs. 8,71,000

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SECTION 4: FINANCING

(1) Staff and Labor S.No. Description Number (a) Administrative & Supervisory Manager One Accountant One Salesman Two (b) Technical Skilled & Unskilled Skilled Semi-Skilled Helpers/Packag er Total (2) Raw Material( Per Month) S.No. Description Quantity Sugar 10 tons Dry Dates Other Materials like 5 tons Two Two Four

Salary

Total Value

8,000 6,000 3,500

8,000 6,000 7,000

5,000 4,000 2,500

10,000 8,000 10,000

49,000 Rate 30/- k.g 20/-k.g Value 30,000 10,000 20,000

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SECTION 4: FINANCING

Chemicals Essence, Saunf etc Packaging Materials Total 60,000

Rs.1,20,000

(3)

Utilities(per month) Electricity Water Total Other Expenses Postage and Stationary Advertising Telephone Repair and Maintenance Transportation Consumable Sales Expenses Insurance Misc. Expenses Total

Rs. 20,000 Rs. 1,000 Rs. 21,000 Rs. 1000 Rs. 5000 Rs. 1000 Rs. 1000 Rs. 1000 Rs. 1000 Rs. 5000 Rs. 1000 Rs. 2000 Rs. 18,000

(4)

SHALIMAR FOOD INDUSTRY

SECTION 4: FINANCING

Total Recurring Expenses Salary and Wages Raw Material Utilities Other Contingent Liabilities Total Working Capital for 3 Months Total Capital Investment Fixed Assets Working Capital for 3 months Total Machinery Utilization:-

Rs. 49,000 Rs.1,20,000 Rs. 21,000 Rs. 18,000 Rs.2,08,000 Rs.6,24,000

Rs.8,71,000 Rs.6,24,000 Rs.14,95,000

It is expected that during first year machine utilization will be 70% and during second year 85% and 100% in subsequent years. Financial Analysis: Cost of Production(per annum) Total Recurring cost per year Rs.24,96,000 Depreciation on Plant and Equipment@10% Rs. 70,000 Total Interest on capital@ 12% Rs. 1,79,400 Total Rs.27,45,400 Turnover per Month Description Qty. Per Rate per Total Jar Jar Flavored 6000/Rs.55 Rs.3,30,000 Mouth Month Freshener

SHALIMAR FOOD INDUSTRY

SECTION 4: FINANCING

Less:- Sales Expenses @ 15% Net Sales Realization Per Month Net Sales Realization Per Year

Rs. 49,500 Rs.2,80,500 Rs.33,66,000

Net Profit per annum before Income Tax:- Rs.6,20,600 (Sales-Cost of Production) Net Profit Ratio:Net Profitx100 6,20,600x100 18.43% Turnover = 33,66,000 =

Rate of Return:Net Profitx100= Total Investment

6,20,600 x 100 = 41.51% 14,95,000

BREAK EVEN ANALYSIS:(1) Fixed Cost per annum Total Depreciation on Plant Rent Interest on Borrowings( Investment) Insurance 40% Salary 40% Utilities 40% Other Contingent Expenses Total (2) B.E.P

Rs. 70,000 Rs1,79,400 Rs. 3,000 Rs. 19,600 Rs. 8,400 Rs. 7,200 Rs.2,87,600

Fixed Cost x 100 = 2,87,600 x 100 = 31.66% Fixed cost + profit 9,08,200

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SECTION 5: ORGANIZATION
Business Organization

(Session 5): Explain the form of business organization you intend to use and why it is best for your business.

Professional Consultants

(Session 5): List the names of your lawyer, accountant, insurance agent and any other professionals.

Licenses

(Session 5): List what licenses you will require to go into business.

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SECTION 6: LICENSES, PERMITS AND BUSINESS NAMES
DBA: The Business we intend to do is of Manufacturing of Mouth Freshener. Licenses: Licenses to be needed for the initiation of this manufacturing business at local and state level are:-

Weights and Measurement Packaging (Municipality) ISI certificate DIC Labor department Provident Fund if labor > 6 Pollution certificate Certificate of electric department Certificate of water department Sales Tax department Police

Trade mark registration

Federal: No federal licensing will be required.

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SECTION 7: INSURANCE
Insurance (Session 7): List the forms of insurance coverage including costs are anticipated.

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SECTION 8: COMMUNICATIONS
Resource Requirements: Communications Enter a description and budget of all communications equipment.

Facsimile Enter a description and budget for all fax equipment.

Computers Enter a description and budget for all computer equipment.

Internet Enter a description and budget for necessary Internet access and providers.

SHALIMAR FOOD INDUSTRY

SHALIMAR FOOD INDUSTRY

SECTION 11: ACCOUNTING AND CASH FLOW
Accounting

(Session 11): Furnish, as a separate exhibit of your starting balance sheet and projected income statements for the first six months to one year.

Cash Flow Planning

(Session 11): Provide a separate exhibit of your one year cash flow analysis including estimated sales, all costs and capital investments. Provide a checklist of all expense items for input into your cash flow projection.

Analysis of Costs

(Session 11): What are all of my costs: fixed, variable, product, delivery, etc.

Internal Controls

(Session 11): Explain your: Intended internal controls and cash controls, check signing policy, strategy for controlling shrinkage and dishonesty and control of incoming merchandise.

SHALIMAR FOOD INDUSTRY

SHALIMAR FOOD INDUSTRY

SECTION 13: MARKETING
Marketing Plan

(Session 13): Describe your overall marketing and sales strategy including how you plan to get and retain customers.

Advertising and Promotion Plans

(Session 13): Describe your plans and budgets for advertising and promotions.

Purchasing and Inventory Control

(Session 13): See how to buy checklist.

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SECTION 13: MARKETING
Training Policies

(Session 13): Describe your plans for hiring and training your sales associates.

The Competition

Chewgum market,local product competitors (Kashmir khas, ,pogo,shanai),national products competitors (pass-pass,chutki,methamaza) .

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(Session 14): Include copies of job descriptions for all employees you intend to hire.

(Session 14): Include a copy of the job application form and screening procedures you intend to use.

(Session 14): Provide a copy of your intended benefits package.

SHALIMAR FOOD INDUSTRY

SHALIMAR FOOD INDUSTRY

SECTION 15: GROWTH PROGRAM
Expansion

(Session 15): Describe your growth: You might include development of profitable pilot operation, sources of financing, cash flow, accounting system in place, incentive compensation plan for managers, benefits package and policies, economics of scale.