PROPOSED BY:
ARJUN SAINI 48
SAHIL KATHURIA 27
ANISH SHETTY 54
PRESENTED BY:
S.No CONTENTS
1. Executive Summary 2. Acknowledgements 3. The Product
5. The Making of Jam 6. Market Segment 7. Market Targeting 8. Product Positioning 9. Competition 10. Price 11. Place [Distribution] 12. Promotion
13. Methodology & Data Sourcing 14. Financial Analysis
15. Analysis, Conclusions and Recommendation
.
Executive summary
Our project required us to work on “Natural Products from Himachal Pradesh”. Amongst the new products, we chose “Jams” which was conceived as a new brand to be launched in the Indian market.
Indian food processing industry has undergone a total metamorphosis in last 5-6 years. India is amongst the world‟s major producer of food, producing over 600 million tons of food products every year. India ranks first in the world in production of cereals, livestock population and milk. It is the second largest fruit and vegetable producer and is among the top five producers of Rice, Wheat, Groundnuts, Tea, Coffee, Tobacco, Spices, Sugar, and Oilseeds. And so far, India‟s share in international food trade is a minuscule 1.5%. Value addition to foods by processing is a mere 8% of total production. Many world players and MNCs have entered Indian market and the industry has undergone a total transformation in terms of quality, design and presentation. Indian companies are consequently finding it intricate to cope up with the pressure applied by foreign companies in terms of variety and quality. Hence, need of the hour is to present something novel which can attract the attention of customers.
PING PONG FOOD COMPANY has come up with the idea of introducing 100% preservative free jam by the brand name ORCHID. Consumer survey was conducted to assess the feasibility of 100% preservative free jams. About 92% of respondents felt that they will definitely prefer natural jams.
Now the target segment that company will contemplate will be upper middle and elite class. Target areas will be affluent sections of Delhi and adjoining areas of Delhi i.e. principles of NICHE MARKETING will be followed.
Now the constraint facing the company is financial in nature. This will be tackled by selective distribution and limited promotion.
Having established itself as leader in the target segment on the basis of quality and efficient distribution, company hopes to widen its area of distribution and hopes to establish itself as the market leader in imminent years as stated in the mission statement.
Acknowledgements
We would like to convey our sincere thanks and acknowledge
the involvement of our faculty towards putting together this
project.
We would to express our sincere gratitude to Prof.Aparna Rao
for her guidance and immense support.
We would also like to thank Chetana’s Institute of Management
& Research for giving us the opportunity to work on such a
detailed business plan.
We would also like to thank Ms. Aditi who gave us all the
information regarding the distribution process.
Last but not the least, we would like to thank all our dear friends
for their unconditional moral support & help.
Analysis of market research
We had conducted a market research to find two things:
1. To identify with the consumer buying behavior of jams i.e. from where, why,
how, when they buy jams, the flavors, packing etc.
2. Secondly we wanted to know the opinion of people about the 100% preservative free jams. Sample size: 1200 Age Group Between 04 - 20 Between 20 - 30 Between 30 - 40 40 and Above
Extent – Delhi and neighboring regions
Gender- Male – 650, Female - 550 Following are the findings of the market research:
Preference for Jams
900 people have jams. 300 don‟t have jams.
Preference for 100% Preservative Free Jams: 80%
Preference of flavor:
Mix fruit, Strawberry, Apricot, Gooseberry, Grapes, Kiwi and Chocolate.
Packaging
100 gms – 200 people 200 gms – 400 people 500 gms – 600 people
Importance of Various parameters
(Ratings 1 - Most important, 6 - least Important)
Taste -- 1 Flavor -- 2
Ingredients and availability –
3 Packaging -- 4
Price –5 Advertising – 6
PRODUCT
PURPOSE OF THE PRODUCT
To fulfill the need of people who love to have 100% natural preservative free jams, and who had to run to far places in order to get it, can now enjoy it through our Ping pong jams.
SBU - Jams is our Strategic Business Unit
SKU -We have 10 Stock Keeping Units i.e. 5 flavors in two packing 250 gms & 500 gms
FLAVORS
1. ORANGE MARMALADE
Orange marmalade is made with a special kind of orange, traditionally known as "Seville Oranges": They are available in the market in February each year and are accessible only for a couple of weeks. They are very different from dessert orange varieties.
Ingredients:
1 dozen oranges Four lemonsThree pints of cold water One pound of sugar
Method:
Take a dozen oranges and four lemons; cut each fruit in quarters and slice the quarters through pulp and rind as thin as possible, discarding all seeds. Weigh the prepared fruit, and to each pound add three pints of cold water. Set aside for twenty-four hours. Let boil gently until the rind is perfectly tender, then set-aside until the next day.
Weight the material and to each pound add one pound of sugar. Let cook until it thickens slightly on a cold dish. The mixture will thicken still more on cooling and care must be taken not to cook it too much. Stir occasionally, while cooking, to avoid burning. Store it as jelly. With a small, hard-wood board upon which to rest the fruit, and a thin, sharp knife, the slicing is quickly done. Use all the water designated.
2.FRESH STRAWBERRY
This is an incredibly popular preserve, especially good on scones. They appear on the market in April and May each year and this is the best time to purchase it and keep it in a deep freezer for further use.
Ingredients
Strawberries - 1.5 kg (3¼ lb.) Sugar - 1.4 kg (3 lb.)
Method
Makes 2.3 kg (5 lb.)
Lightly crush the strawberries, put them in a pan with the sugar, warm and stir continuously until all the sugar is dissolved, then boil rapidly until the setting point is reached.
Remove the scum as soon as possible, but leave the jam in the pan to cool for about 10 minutes, until a skin just begins to form on the surface, then stir the jam gently and pour it into warm jars. Cover as usual.
3.GOOSEBERRY JAM
Late June is the time to look for the hard green gooseberries this recipe calls for. The jam can also be made later in the season, with riper, sweeter fruit. It will then have a light set and an attractive pale pink color.
Ingredients
Gooseberries -2.7kg (6lb), slight under ripe, topped and tailed Water - 1.1 litres (2 pints)
Sugar - 2.7 kg (6 lb.) Butter - 15g (½ oz)
Method
Makes 4.5 kg (10 lb.)
Put the gooseberries into a preserving pan with the water and simmer gently for about 30 minutes until really soft and reduced. Pulp it with a wooden spoon or potato masher. Remove from the heat, add the sugar to the fruit pulp and stir until dissolved, then add the butter.
Bring to the boil and boil rapidly, stirring frequently, for about 10 minutes. Test for a set and, when thhee setting point is reeached, take the pan off the heat and skim the surface with a slotted spoon. Pot and cover the jam.
4.
FRESH
APRICOT
JAM
Ingredients
Apricots - 675g (1½ lb.), halved and stoned Water - 300 ml (½ pint)
Butter - 15g (½ oz)
Sugar - 900g (2 lb.), warmed
Method
Makes 1.5 kg (3¼ lb.)
Put the apricots and water in a saucepan and simmer for 10 minutes. Stir in the butter and warmed sugar until dissolved, then boil for about 20 minutes to setting point. Stir well and pour into warmed jars.
5. MIXED FRUIT JAM (Strawberry, Apple,
,
Gooseberry)
Ingredients
Strawberries - 1.5 kg (3¼ lb.)
Gooseberries - 2.7 kg (6 lb.), slightly under-ripe, topped and tailed Water - 1.1 litres (2 pints)
Sugar - 2.7 kg (6 lb.) Butter - 15g (½ oz) Apples – 1.5 kgs
Method
Lightly crush the strawberries, put them in a pan with the sugar, warm and stir continuously until all the sugar is dissolved, and then boil rapidly until the setting point is reached. Mash the apples and add to this paste. Put the gooseberries into a preserving pan with the water and simmer gently for about 30 minutes until really soft and reduced. Pulp with a wooden spoon or potato masher, remove from the heat, add the sugar to the fruit pulp and stir until dissolved, then add the butter.
Bring to the boil and boil rapidly, stirring frequently, for about 10 minutes. Test for a set and, when the setting point is reached, take the pan off the heat and skim the surface with a slotted spoon. Pot and cover the jam.
MINIMUM EQUIPMENTS AND MACHINERY FOR UNIT OPERATIONS
1. Washing of raw materials:
a) Rectangular tanks with false bottom of not less than 20 gallons capacity.
2. Washing of bottles:
a) Tanks having not less than 40 gallons capacity. b) Bottle washing machine, brushes, racks, trolleys c) Buckets
3. Processing:
a) Furnace/ gas stoves
b) Vessels/ steam jacket kettle. c) Ladle
d) Thermometer, hydrometer, Refractometer.
Refractometer is made for specific ranges of solids. The percent sugar is read directly on the Refractometer scale and is usually referred to as " degrees brix ". Sixty six percent sugar is (660 brix). The accuracy of the reading is temperature dependent, so the Refractometer and the sample should be at room temperature.
4. Fermentation:
a) Barrels b) Carboys c) Earthen jars
5. Filling and sealing:
a) Mugs / funnels
b) Crown cork machines c) Weighing balance
6. Exhausting, processing for cans:
a) Tanks with cratesb) Double steamer / semi- automatic can sealer c) Cooling tanks with crates/cranes.
d) Pressure cookers/ sterilizing equipments e) Incubator / pressure can tester
f) Pasteurizer
SAFETY AND SPOILAGE
Since jams are packed at high temperatures, they are not likely to harbor harmful food borne illness organisms. Some mold spoilage may develop if the cap applied is not heated to a temperature adequate to destroy mold spores.
It should be stored in a dry area, away from heat. It needs to be refrigerated once it is opened. For best results, the content should be transferred into airtight glass jars and refrigerated after opening. It is best for usage 6 months after the date of manufacturing in its original seal pack, provided the storage instructions are adhered to.
HYGIENE – the highest priority
Raw Material level
Thorough cleaning and inspecting is done before any raw material is passed on to production. Inspection for microbial contamination, pesticides and fertilizer residues is done in a sophisticated lab of international standards.
In process hygiene
Periodic, standard-cleansing procedures for boiler, ducts and vessels are done under expert supervision. Personal hygiene of the workers is ensured by antiseptic dips at entry and exit. Work clothes are cleaned and sterilized in a state of the art facility. Head wear and mouth piece prevent Contamination by hair or microbes during working hours.
Finished product hygiene
The bottles for packing finished products are cleansed and sterilized by an advanced technique. Caps also pass through a similar process.
All products confirm are accepted by FPO (Indian Food Product Order) standards and are also open to "Third Party Inspection/ Testing" by an international agency of repute.
PRODUCTION
Rajgarh often referred to as the peach bowl of Asia, abounds in excellent stone-fruit (apricot, plums, peaches) as well as apples, pears, strawberries, guavas, kiwis, lemons (highly aromatic gulgul) and wild gooseberries. The fruit used is the very best and the freshest. Whenever possible, jams are made from originally grown, sometimes even homegrown fruit. Handpicked and carried up to the factory door by the local farmers. It is carefully hand sorted and meticulously hand-cut. In most cases, the jams can only be made once a year when the fruit comes fresh off the trees.
MARKET TARGETING
The market targeting will be done by
Single–Segment Concentration:
The main segment we are concentrating on is the Households
Target market for Ping pong Jams
HOUSEHOLDS
1. Home Use: For the entire
family
2. Health Purpose: People are say
100% no to products with
artificial flavors and colors &
want to enjoy the pure and fresh
fruits in the form of jams
PRODUCT POSITIONING
We will position our product on 2 main basis:
PERCEPTUAL MAPS
1. Personal perception
Foreign brands Price Ping pong Kissan Quality2. Preservative Used
Foreign brandsPrice Ping pong
Kissan
0
PRICE
PRICING STRATEGY
We are following a Markuppricingstrategy
Here unit cost for selling Jams, for example a strawberry 500 gm Jam
Raw material = Rs. 10.5, Packaging and bottling = Rs. 7 Margin and tax = 19.2,
Transportation and other variable cost = Rs 3.72 Total Unit Variable Cost = Rs. 40.42
Fixed Cost = Rs. 3,81,850 Number of Unit to be Sold = 38000
Fixed cost / Number of units to be sold = 397210/46300
= Rs. 8.58
Unit Cost = Rs. 49 Markup 63% = Rs. 30.87
MARKET SEGMENT
We have segmented the market based on: The Survey conducted & Price
The four variables for segmentation that were taken are: Demographic, Socio Economic, Psychographic, and Geographic.
1. Demographic:
i) Education: All educated people who understand the concept of
„natural products‟.
ii) Social Class: Our jams will be catered to people of Upper Middle
Class & the Elite class. iii) Age: No Bar
2. Geographic:
Regarding our new product introducing Jam in the market we will target elite areas such as taking south,
North & Central Delhi.
3. Socio Economic:
It will include higher income group with monthly income
greater than Rs 30,000.
4. Psychographic:
This will include all the health conscious people who very well understand the meaning and advantages of “Preservative Free Jams."
SWOT ANALYSIS
STRENGTHS WEAKNESSES
100% Preservative Free Budget Constraint
Exotic flavors Limited Coverage
Premium Quality
Niche segment High Price
Increasing Health Awareness Competition
Low Awareness
Customer resistance to new products
Unorganized segment
COMPETITION
Our main competitors in the market are Kissan the jam leader & the other foreign brands
POSITIONING
STRATEGY
PING PONGS KISSAN FOREIGN BRANDS
Market Leader: Market Leader Doubtful positioning Dominant position i.e. Large market share, The foreign brands are one of the only firm has a strong hold in mainly positioned as providing 100% the preservative jams Low fat(sugar) content
preservative jams category jams.
TIGER COMPETITOR: SELECTIVE Laid-back Competitor The firm reacts swiftly COMPETITOR: The The foreign brands do not react quickly or and strongly to any firm reacts to only
strongly to rival‟s assault. Certai n type of move. attacks. It might
respond to price cuts but not to advertising expenditure.
PRODUCT The product will be Brand name, low High price
DIFFERENTIATI differentiated on the price Low sugar content
ON basis of premium Attractive l packaging
quality, no preservatives
BRANDING Self made brand Comes with the Self made brand
company‟s name i.e. HLL
USP 100% Preservative Free, Good Quality at a Attractive Packaging Premium Quality with a low price.
PROMOTION
TARGET AUDIENCE
Since “Ping pong” Jams is a premium quality product, priced little high than
other jams, it will be targeted to mainly Elite class & the upper middle class,
especially those who perceive the meaning of “Preservative free” concept.
COMMUNICATION OBJECTIVES
Awareness
: The first objective would be to make the target market aware of thegrowing need to switch to preservative free foods.
Conviction
: It would involve to build conviction amongst the target audience &convince them that our product is pure and of best quality .
COMMUNICATIONCHANNELS
PersonalChannel:
Our personal channel to communicate our objectives will start one week after the launch of the product in the market.
Under personal channels we
will use:
Advocate Channel: It consists of company salespeople contacting
buyers in the target market.
Through schools, food fairs, haats, stalls at elite departmental
Non Personal Channel:
To promote our product we will use the following non-personal channels: Articles in Newspapers
Magazines : Columns on Health & Beauty section in Some health magazines will be sponsored by our Company
Web: A web page. We have tied up with indiatimes.com, & it has accepted to give us a space on their website for a week for a nominal fee of Rs 1000
TOOLS OF COMMUNICATION
SALES PROMOTION
Schools
are the place where we can focus school students. We will distribute free Ping pong jams sachets along with our product literature, which will talk about the concept of “Preservative Free Jam” , why is good for health as compared to ones existing in the market, the exotic flavours available , and how are they prepared.We would initially cater to Five elite schools in the National Capital Region i.e.
1. G. D Goenka School 2. British School 3. Sri Ram School 4. Vasant Valley School 5. Heritage Schoo
Around 1000 free sachets along with the brochures will be distributed. Point of purchase Displays and demonstrations:
Under this promotion scheme, we would put special Stalls at the following places in order to attract the target segment
1. BIG DEPARTMENTALSTORES:
We have identified 3-4 big departmental/shopping stores at various places in Delhi. We have spoken to these departmental stores & they are ready to allow us to install stalls in front of their stores. In these big departmental stores, generally people of upper middle class & elite class, comes to do shopping. And that is our target segment, we will make them taste our jams & at the same time, make them fill a small feedback form, which will be a very important tool for us to gauge the attitude of our target market towards our offering.
a)
Diwali
Mela
at
Blind
School:
Every year there is a Diwali Mela organized at Blind School in Nizamuudin & there too people of our target segment come & buy products through various schoolsb)
Delhi
Haa
: Delhi Haat is another place to market the right product to the right people. There are lots of people who visit it in order to buy something distinct & our jams is just the right thing to catch their attentionc) CraftsMelaatModernSchool,Barah
Khamba Road: Crafts mela is another area, wherewe can find our potential customers
Clubs like Panscheel Club, Vasant Valley Club every year organize different fairs at Diwali, Christmas, at that time we will offer jams in assorted gift packs. During festive seasons, people usually try to find out some new thing to offer, & our jams will just be something unique to offer.
2. PAMPHLETS & BROCHURES: After identifying the place with
the maximum percentage of our target population, We will tie up with the newspaper vendors & local newsletter, to include the pamphlets & brochures to be included in the newspapers that they would distribute to the people. This promotion strategy will be carried out on the day of launching the product & subsequently on every Sunday for 2 months. These pamphlets will talk about our jams, their specialty, flavors, and the nearby shops where they are available.
3.CROSS PROMOTION: Our Company has tied up with Harvest Gold
Bread Company. During the first month of the launch of our jams, we will be offering free 10gms jam bottles with each full loaf of
bread, only at few selected places in Delhi i.e. where the density of our target population market is the maximum. However this offer will come with the condition “Offer
valid till stocks last ." We will be selling 20,000 sachets at our cost for the first two months.
Trade shows
:In addition to this we will be setting our Jams stall at Annual India International Tradefair held at Pragati MaidanPACKAGING AND LABELLING
Packaging gives life to the product. Packaging includes activities of designing and producing the container and wrappers for the product. It has become an important marketing tool. Well-designed packages can create convenience and promotional values. All the existing physical products and the products to be launched in the market have to be packed and labeled in an attractive manner in order to seek customer attention. Packaging is considered as one of the important elements of product strategies.
Developing n effective packaging for a product requires several decisions. The first task to establish packaging concept is to define what the package should basically be for the product. Then decisions are also to be made on additional elements like size material brand market etc.
Keeping the above points in view the labels which are to be put on our jam bottles will give a brief description of our product which will include the ingredients, price, weight, manufacturing date, name of the company and flavor. The lid of each bottle will have an FPO mark and batch number.
The jam will be packaged in two different sizes of bottles, which are of 250 gms and 500 gms. The cartons will have a packaging capacity of 12 bottles of 500 gms and 18 bottles of 250 gms.
For the purpose of packaging we will have to incur cost of Rs. 6.5/ bottle of 500 gms and Rs. 5.50 per bottle of 250 gms. The cost of cartoon will be aprox. Rs. 5/ which will include cost of the cardboard box, the material with which the box has to be covered, and the seal of the company which is to be put on each cartoon.
Self
Service
: An increasing number of products are sold on self services basis i.e., the purchases are made on impulse where the effective package operates 5 second commercial therefore package must perform many of the sales task like attract attention describe the product features create consumer confidence and make favorable overall impression.Consumer Affluence: Rising consumer affluence means consumer is willing to pay little more for the convenience appearance dependability and prestige a better package.
Company
and Brand
Image
: Packaging should be done in such a manner it contributes to instant recognition of the company and brand.PLACE
DISTRIBUTION
Distribution includes delivery of goods from the manufacturer to the retailer. For
this purpose it becomes very essential to have distributors in between them so that communication becomes easier.
Distribution plan focuses on the set of decisions relating to the processes, which are concerned with the flow of suppliers, components, products, and services between sources of producer, intermediaries, and the end user.
Manufacturer
Distributor
Retailer
The manufacturing for our jams would be done in Himachal Pradesh, at Rajgarh. Other things like processing, packaging and labeling shall also be done at that place.
The bottling of jams will be done at Rajgarh itself for which bottles will be sent to Rajgarh from Delhi .The sealing of the jams bottles would be of the shrink pack. Then these bottles will be brought to Delhi and supply to the distributor through CNF (CLEARING AND FORWARDING)
Manufacturer
CNF
Distributor Distributor Distributor
Every distributor we supply our jams has their own warehouse and
would supply to their retailers as and when required.
The CNF person would be appointed on behalf of the Company itself, who would take care of the goods received from Rajgarh and will store it in the warehouse of the Company at Rajori Garden.The total production will be made of 38000 bottles
500 gm 27,000 bottles 250 gm 19300 bottles
The list of Distributors and outlets covered by them
is mentioned below. The taxes and margin given to the Distributors and the Retailers is also mentioned. The places covered are: South Delhi West Delhi North Delhi DLF (Haryana) Noida (U.P)The Sales tax for Delhi is 8%. The Sales tax for DLF IS 12% The Sales tax for Noida is 8%
CNF person will get Rs. 3000/- per month
One Helper with the CNF will get Rs. 1800/- per month
The cost of Transportation of L and T Bottles from Hindustan Glass company ,
Chandigarh - Rs. 2000/- for 300 cartons .
The cost of transportation of Jams from Rajgarh to
Delhi- Rs. 2000/- per month for 200 cartons
The cost of auto fare would be Rs.1000 – Rs. 1200/- per cycle
That is the cost of auto fare per month on an average would be Rs. 2400/- per month
Distributor will get a margin of 6% Retailer will get the margin of 10%
FINANCIAL ANALYSIS
REVENUE SHEET
Products Quantity Selling Sales ( Rs.)
(units) Price (Rs.) Strawberry 10000 80 800000 500 gms. Strawberry 250 gms. 7000 45 315000 Mix Fruit 500 gms. 10000 80 800000 Mix Fruit 250 gms 7000 45 315000 Apricot 500 gms. 3000 76 228000 Apricot 250 gms. 2000 44 88000 Orange Marmalade 500 2000 82 164000 gms. Orange Marmalade 250 1300 46 59800 gms. Raspberry 500 gms. 2000 76 152000 Raspberry 250 gms. 2000 44 88000 Total 46300 3009800
COST SHEET
Cost
Details Amount (RS)
Manufacturing Cost Raw Materials, Bottles, Packaging 752450
Labor Cost ( Variable ( number of days * Number of 450000
Cost) workers * Cost per worker
(300*10*50)
Electricity, Water Expenses 50000
Transportation cost Chandigarh – Rajgarh = 12*2000 114000
= 24000
Rajgarh- Delhi = 12*5000 = 60000
Within Delhi Auto = 30000
Salary Distribution Cost Rent- storage Advertising and promotion Cost Fair 2 persons = 96000 and 74000 Rs. 170000 Per Annum
Margins to the Distributors @ 6% 180588
Margins to the Retailers @10% 300980
CNF and helper 57600
3000/ - per month 36000
Sachets – 5000 * 3= 15000 30000
Pamphlets – 5000*3= 15000
Magazine Health magazine 50000
Web site 4000/- per month 8000
Legal FPO license 250
Other licensing 1000
Accountant 5000
Sales tax person 5000
Tax Sales tax on Jams sold 196960
Miscellaneous Travelling , stationary, postage 25000
expenses etc. Total 2472828
Profitability
1.Total Revenues Rs. 3009800 2.Total Costs Rs.2472828 Profits/( losses) : 1 – 2 Rs. 536972Investment
Land lease @ 50000/ per year
1,00,000
Building Setup and various tables, utensils 4,00,000
etc.ment for two years
35000
Freezer
Lug machine 4000
Food warmer 4000
Cash working capital 2,00,000
Total
BREAK EVEN ANALYSIS
The Break Even Analysis is calculated for the purpose of calculating when the Investment is recovered?
Here the Investment is = Rs. 743,000 for five year and we assume that it is ment for two years. So every year amount will be 371500
Other Fixed cost ( Electricity , Salaries , Rent , Advertising promotions legal costs , miscellaneous costs ) = Rs. 397210
Variable costs ( Raw material cost , Packaging , bottling , transportation, margins to the distributors and retailers, tax ) = Rs. 2075618
Total Fixed cost = Rs. 768710 Total Revenues = Rs. 3009800 Total Variable Cost = Rs. 2075618
Contribution = Total Revenues – Total Variable
cost = Rs. 934182
P/V ratio = Contribution/
Revenue = 934182/
3009800 = 0.3103
Break Even ( in Rs. ) = Total Fixed Cost/ P/V ratio
= 768710/0.3103 = Rs. 2477312
For future cash flow
I year II year III year IV year V year
sales 3,010 4,214 5,478 6,847 8,559 veriable cost 2,076 2,950 3,670 4,451 5,349 Contribution 934 1,264 1,808 2,397 3,210 fixed cost 397 600 700 800 950 Profit 537 664 1,108 1,597 2,260 cash inflow 696 904 1,388 1,917 2,640
Breakeven pont on operating activities
I year II year IIIyear IV year V year
pv ratio 31% 30% 33% 35% 38%
break even point 1280 2000 2121 2286 2533
Margin of safety 57% 53% 61% 67% 70%
Jun- Aug- Sep- Oct- Nov- Dec- Jan- Feb-
Mar-07 Jul-07 07 07 07 07 07 08 08 08 Sales 301 301 301 301 301 301 301 301 301 301 Variable cost 207.6 207.6 207.6 207.6 207.6 207.6 207.6 207.6 207.6 207.6 Contribution 93.4 93.4 93.4 93.4 93.4 93.4 93.4 93.4 93.4 93.4 Cumulative 93.4 186.8 280.2 373.6 467 560.4 653.8 747.2 840.6 934 Contribution fixed cost 397 397 397 397 397 397 397 397 397 397 profit/loss - - --23.4 70 163.4 256.8 350.2 443.6 537 303.6 210.2 116.8
We hope that above venture will provide enough income and growth so we collectively make a brand which give smile on every face in the morning .
APPENDIX
QUALITY
Requirements for setting up a Fruit Preservation Factory in conformity with the Fruit Products order, 1955.
1. Application on Form 'A' (Specimen enclosed).
2. Plan of the factory showing the dimensions in meters/sq, meters and operation-wise area allocation.
3. List of machinery and equipment showing the capacity, horsepower used, number and source of supply of each machine.
4. Proof of possession of premises.
5. N.O.C. from the local governing authority
6. Water analysis report chemical and bacteriological from Public Health Laboratory. No person shall carry on the business of manufacture of fruit products except under and in accordance with the terms of an effective license granted to him under this order. Category area requirement, annual production limit and license few for one terms or part thereof (Ref. Clause 5 (2) and part I (B) of the Second Schedule of Fruit products order, 1955).
Category Minimum Minimum Licence fees Annual area required area required for one terms production
for for storage's of part permissible per
manufacturin and office thereof calendar year g premises purpose
Cottage scale 60 60 Rs. 250/- Above 10 M.T.
but fees then 50 MT
Note: 1. Area occupied by machinery shall not be more than 50% of the manufacturing area.
2. The minimum height of the factory premises under cottage scale categories is 20 feet and for small scale and large scale categories 14 feet.
Every manufacturer shall manufacture fruit products in conformity with the sanitary requirements and appropriate standards of quality and composition specified in the second schedule of this order.
Part 1 (a) Sanitary requirements of a factory of fruit products the premises shall be adequately lighted, ventilated and cleaned by white washing/colour washing or oil painting.
The equipments and the factory shall not be used for manufacture of repugnant products like fish, meat, eggs etc. However, permission may be granted as a special case if arrangements are made for disinfections of premises after changing from meat products to fruit products (One month idle gap will be required for change over).
The premises shall be located in a sanitary place with open surrounding, preferably in industrial area/estates. The premises shall not be used as or communicated directly with residence.
Adequate arrangements for cleaning equipment's, machinery, containers tables and raw materials shall be provided.
Copper bias or iron equipment's, containers or vessels are net permitted, in the preparation, packing or a storage of fruit products, only aluminum, stainless steel, glass or tin equipment are allowed.
The water used shall be potable and shall be got examined chemically and bacteriologically by a public Health Laboratory (if no municipal water is available at the premises). The water sample should be drawn for such examination by the public Health Authority of the Area where the premises is located or should be drawn in the presence of the above authority. Free following tap water of 1 kilolitre per day shall be made available.
Adequate drainage system and provisions for disposal of refuse shall be made. Wherever cooking is done on open fire, proper outlets for so stroke/steam etc. like chimney, exhaust fan etc. shall be provided.
The worker engaged in the factory shall be healthy and shall be medically examined, inculcated and vaccinated whenever required.
The workers shall be provided with aprons, head - wears gloves etc. and shall be personally nest and tidy.
Qualifications of Technical Staff
Production shall be supervised by a person possessing one of the following, qualifications:-
Small scale
1. B.Sc. with Chemistry/Agriculture as one of it subject.
2. Diploma or certificate n fruit preservation or a course of atleast 3 months duration from a recognized institution.
