Organic Store - Business Plan Presentation

A Business Plan Presentation for an Organic Fruits and Vegetable Store in Ahmedabad, Gujarat
Made In: November 2019

1. Business Plan Farm Fresh Organically Yours! November 2018

2. Chaudhary Vasant Jain Yash Mehta Tanvi Mrudul Manojkumar Pandya Priyal Revar Shailesh Group Members 2

3. Introduction 3

4. Idea Increase popularity of Organic Products that mostly get exported Create awareness about Organic Products Operate in a market that has less competition Provide superior quality product Selling to the Middle Class along with the Upper Class and Upper Middle Class No taxes apply to this product 4

5. Pesticides: - Very harmful for health Causes diseased like Cancer Chemical Fertilizers: - Crops produced have less nutritional value Degrades fertility of soil greatly Manufacturing and usage results in Air, Water and Land Pollution Increased cost of Production for the Farmers 5 Problem Importance of Organic Farming Health: - Does not contain poison High nutritional value Taste: - Food tastes good Food lasts longer Environment: - No usage of pesticides or chemical fertilizers No pollution Increases fertility of the soil Disadvantages of Normal Farming

6. India ranks 9 th in terms of World’s Organic Agricultural Land and 1 st in terms of total producers. India as on March 31, 2018 has 35.6 lakh Hectares under Organic Certification process out of which 17.8 lakh Hectares is cultivable area. Among all the states, Madhya Pradesh, Rajasthan and Maharashtra, the three neighbors of Gujarat , cover the top 3 portions and are among the top 5 producers of organic products. The NPOP accreditation program has been accepted by the European Commission, USDA and Switzerland as equivalent to their country standards. Around 17 lakh MT organic products are produced in India. Out of these, 4.6 lakh MT gets exported. Out of these products, cereals and millets, fruits and vegetables, which do not get sold here are exported at decreasing prices . Opportunity The opportunity created 6

7. Extensive Marketing that targets Upper Class, Upper Middle Class as well as Middle Class. Supply certified products irrespective of them being unprocessed or processed. Increased health consciousness in the market resulting in demand for healthier substitutes . Less competition in the market. Relaxed marketing strategies adopted by competitors . Solution The solution that our business provides 7

8. Their Target Markets Brand Loyalty from Customers Current Level of Competition Whether prices are negotiable or not? Most selling as well as slow moving products Technologies required Manpower required Licenses Machineries required Whether they reach the customers directly or not? Opted method of transporting goods Market Research Visited nearby Organic Stores and observed the following points: - 8

9. As we are producing ourselves, we can charge a comparatively lower price . Due to a possible lower price, we have a bigger target market . Very few competitors in Ahmedabad Prices are not negotiable Household products that are unprocessed are in high demand . Most competitors act as aggregators while we deal directly with customers No special manpower required Transporting goods through cargo is the most opted for method 9 Market Research Summary

10. The waste product will be converted into manure and sold to the farmers . Lower prices than the ones provided by sellers that acquire them through aggregators. Shop located where there is a traffic from all three sections of the Target Market. Providing home delivery to places with people willing to pay considerably higher prices. USP 10

11. Stores in High –Traffic Areas The word organic should get the required attention from the traffic frequenting the place. Home Delivery in Posh Areas Areas like Sindhubhavan Road, Judges Bungalow Road, Satellite, Bodakdev , Nikol and K K Nagar have people willing to pay high prices to have fresh vegetables delivered to their houses on daily basis. Hospitals near the Shop Promoting the product near Hospitals will considerably increase our brand awareness Fitness Centers around the Shop Fitness Centers have many health conscious people that can be drawn in with the lure of fresh and healthy food Eco-Conscious Individuals 11 Target Market Who do we plan to sell to?

12. Perishable Products Product getting damaged during Transport If the farmer loses his product, the current plan does not have an alternative source to procure the goods . If the buyer cancels a big order, the material bought cannot be recovered If demand increases drastically, we cannot increase the supply accordingly. Risk What are the risks of this business? 12

13. Shop Shop located at a place with heavy footfall. Home Delivery Home Delivery in specific regions from Home Delivery at a discounted rate in the Morning and Evening Hotels/Hospitals/Fitness Centers Contract with Hotels, Restaurants, Hospitals and Fitness Centers Online Selling through own website Selling through online Grocery Stores like Big Basket, etc. 13 Distribution Channel What methods will we adapt to distribute the product?

14. Pamphlets in Newspaper Exhibitions & Events Painting on Delivery Vehicle Carry Bags Posters outside Gyms and Hospitals Awareness Program in Schools and Colleges Sponsorships Hand Made Posters Posters in Vegetable Markets ( Mandi ) Balloons Advertising and Promotion The methods of promotion we plan to adopt 14

15. Local Retailers and Wholesalers Green-o-Bazaar Parag Organics Asal World Others Online Amazon Big Basket Groffers Others NGOs Go Green Local Farmers 15 Competition Who are our Competitors?

16. Start-Up Cost Cost to be incurred before commencement of the Business 16

17. Commercial Structure – Shop/Office Acquisition – Rent Rent: ₹30,000 per month Area: 252 sq. ft Address: Mansi Circle, Satellite Nearby: - Satyam Mall Shreema Maternity Nursing Home Shalby Hospital Ahmedabad Heart Hospital Mansi Fruit Centre Vadilal Hangout, South Café and 3 other restaurants BRTS Corridor Hanuman Mandir Takshashila Apartments, Sudarshan Apartments, etc. Building 17

18. Start-Up Costs Particulars Cost (₹) Particulars Cost (₹) Rent Deposit 60,000 Baskets 3,600 License 12,500 Computer + Billing Machine 20,000 Vehicles 2,28,000 Card Swiper 4,500 Telephone 1,500 Water Sprinkler Bottle 40 Second-Hand A/C 30,000 Fire Extinguisher 2,000 Interior 40,000 CCTV 3,000 Board & Banners 10,000 Water Filter 2,500 Fans (x2) 2,400 Cold Storage 1,00,000 Weighing Machine 4,000 Packing Machine 1,500 Furniture 1,00,000 Advertisement 4,500 Vegetable Basket 150 Total 6,30,190 18

19. Fund Raising Owners Capital = 6,48,000 / 6 = 1,08,000 Owners’ Capital = ₹ 1,08,000 per owner 19

20. Fixed Cost 20 Costs to be incurred per month irrespective of Operations

21. Fixed Costs Particulars Cost (₹) Particulars Cost (₹) Rent 30,000 Owner 70,000 Electricity 10,000 Cleaning Equipment 500 Driver 8,000 Telephone Charges 450 Helper 8,000 Advertisement 2,000 Employees 20,000 Fuel Charges 3440 Depreciation 3,000 Total 1,87,390 21

22. Variable Cost 22 Operating Cost

23. Products Sold (Vegetables) Long Shelf Life Short Shelf Life Medium Shelf Life Potato Bitter gourd Brinjal (Eggplant) Tomato Corn Bottle gourd Onion Cucumber Carrot Chilli Spinach Capsicum Green Peas Fenugreek Ladies’ Finger ( Okro ) Lemon Mint Apple gourd (Indian Squash) Cauliflower Drumstick Cluster Beans Beans Beetroot Coriander 23

24. Products Sold (Fruits) Short Shelf Life Medium Shelf Life Banana Pineapple Guava Pomegranate Pear Orange Chikoo Mosambi Grapes 24

25. Products Sold (Dairy) Dairy Products Milk Ghee Buttermilk Curd Paneer Mawa Coconut Water 25

26. Variable Cost (Fruits & Vegetables) Product Procuring Cost (₹/kg) Sales Price (₹/kg) Margin (₹/kg) Potato 20 35 15 Tomato 15 30 15 Onions 20 30 10 Carrot 30 60 30 Capsicum 60 120 60 Chilli 40 65 25 Corriander 10 20 10 Lemon 65 120 55 Spinach 15 25 10 Banana (₹/dozen) 40 70 30 Chikoo 25 40 15 Grapes 80 125 45 Orange 35 50 15 26

27. Variable Cost (Dairy Products) Product Procuring Cost Sales Price (₹/kg) Margin (₹/kg) Milk 40 70 30 Ghee 700 850 150 Buttermilk 11 15 4 Curd 80 120 40 Paneer 320 350 30 Mawa 110 130 20 Coconut Water 25 40 15 27

28. Variable Cost (Dairy Products) Product Procuring Cost Sales Price (₹/kg) Margin (₹/kg) Milk 40 70 30 Ghee 700 850 150 Buttermilk 11 15 4 Curd 80 120 40 Paneer 320 350 30 Mawa 110 130 20 Coconut Water 25 40 15 28

29. Calculation of Unit Product Product Quantity (kg/Customer) Production Cost (₹/kg) Total Cost (₹/Combo) Selling Price (₹/kg) Selling Price (₹/Combo) Margin (₹/kg) Total Margin (₹/Customer) Potato 2 20 40 35 70 15 30 Tomato 2 15 30 30 60 15 30 Onions 1 20 20 30 30 10 10 Chilli 0.1 40 4 65 6.5 25 2.5 Corriander 0.2 10 2 20 4 10 2 Lemon 0.1 65 6.5 120 12 55 5.5 Banana 1 40 40 70 70 30 30 Milk 1.5 40 60 70 105 30 45 Total 202.5 357.5 155 29

30. Calculation of Break-Even Point Fixed Cost = ₹ 1,87,390 Margin per Unit = ₹ 155 Target Customer per Month = 1210 Target Customer per Day = 40.33 Target Customer per Hour = 2.5 Customers 30

31. Monthly Forecasting Months No. of Units Sold Profit/Loss Surplus/Deficit in Target 1 1000 Loss -200 2 1100 Loss -100 3 1200 Break - Even 4 1350 Profit 150 5 1500 Profit 300 6 1700 Profit 500 7 1750 Profit 550 8 1800 Profit 600 9 1900 Profit 700 10 1900 Profit 700 11 2000 Profit 800 12 2050 Profit 850 31

32. Monthly Projection 32

33. P&L Projection for the 13 th Month Particulars Quantity Rate Total A Sales Revenue 2100 360 7,56,000 B Variable Cost 2100 205 4,30,500 C Gross Profit = A - B 2100 3,25,500 D Total Fixed Expenses 1,87,319 E Depreciation (Non-Cash) 2,890 F Total Fixed Expenses (Cash) 1,90,209 G Operating Profit/Loss 1,35,291 H Taxes - I Net profit/Loss 1,35,291 33

34. Future Plans 34 Large Image

35. Thank You Farm Fresh Organically Yours!