Business Plan for a new type of Sauce_Pero's

8/13/2019 Business Plan for a new type of Sauce_Pero's

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Everybody wants somethingnew today.

Taste has defined new limits

for what people are ready tospend on.

We with Peros Sauce want totarget people as our customerwho are looking for a new taste.

We provide Authenticity,traditional flavor of Kaachri-straight from the roots ofIndian Heritage.


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The collection includes a range: Phiro Hot Sauce Phiro Mild Sauce

It caters to the middle/uppermiddle class/high class.

Peros Sauce intends to get

into the gap where all theforeign sauces fail to attachthe authentic Indian Taste.


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Kachri is a wild variety of cucumbers.Fresh kachri resembles a brown yellow small melon.

It grows wildly in the desert.

It is the real earth food growing wild.

And becoming a protein rich vegetable.Kachri powder is used extensively in Rajasthani cuisine.

(Kaachri)


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We embark on the journey tosavour the essence of culture

through the taste of anauthentic-indian-sauce


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Hot and mild sauces for everygenre and class of India

Stickiness of taste: Tangy &

Sweet

Everyday use & health benefits

Part of recipes, chickentenderizer etc.

The taste of spice redefined.


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An ignored segment

High demand segment

Though there is competition

Can get enough room to grow

The segment cant die or getoutdated (Indians love to eat)

To target the most lucrativeindustry in IndiaTaste + Savoury = Addiction


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Local Chutneys arepresent in every house

But very few have takenthe initiative to make their

own recipe public

Even then the availabilityis limited to imports, theveritable taste of Indiancuisine is missing


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No specialised readymadesauce for Indian taste

Limited penetration ofavailable options because ofhigh price

The sauce doesnt only getused with food items it alsoacts as a tenderizer which isan added benefit


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1 cold storage warehouse

With basic warehousingfacility

Sales team under adistribution head

We plan to sell throughgrocery stores, distributors


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We would keep organizingtaste fairs at differentlocations

Vibrant yet relishing foodstalls as promotional strategy

Host direct selling parties

Blue ocean from within a RedOcean

Triple Health Benefits- acoolant, tonic & stimulant.

Promotional Strategy


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www.Perosauce.com

Advertisements on various

food blogs and websites

Social networking siteswould be used such as

Pagalguy Twitter Google ads Facebook

PerosSauce


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Wall poster

Advertisements in Malls

Direct selling parties

Mall events


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Industry is expected to rise to Rs100,000 cr (US$ 18.90 billion) by2015 in the sector.

The sector is expected to grow by 20

% and value addition to increasefrom 8% to 35 %by 2015.

Distribution centres throughout the

country involving private sector willrise

There are 25, 367 registered foodprocessing units in the countrywhose total invested capital is Rs84,094 crore


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Fruit & vegetable processing- increase from 2% to

25% of total production by 2025, The food processing sector is presently growing at

an average rate of 13.5% per annum. Food processing industry is a potential source for

driving the rural economy and

Is of great importance to an agrarian economylike India.


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Unique offering for the gap inthe market - Differentiation

Liberalization & change in theoutlook and increase in buyingpower

Direct selling and multibrand

store selling model

No specialised readymade saucefor Indian taste

Regular use of kachri Powdermay help to cure minor skin

diseases like boils, bed sores,

lice, manifestation, pricklyheat, itching, earache, etc.

Introduce complementary

and contrasting flavorsEnhance the appearance of

food


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No stores : lower real estate

Outsourcing production for firstyear: manufacturing unit andmachines

Low fixed cost Using multi brand stores brand

equity to push our product andget visibility

Direct selling model: decreasedintermediary cost

Facebook for advertising:* custom expenditure* focussed advertising* data base formation


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The manufacturing kitchen will be located inFaridabad

The area required for manufacturing is 1600

sq ft The per sq ft rate in Faridabad is between Rs

50-Rs 55


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It will have an additional

section for basicwarehousing of 400 sq ft

for Samples Packaging machine Labelling


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Apply for DIN (Director Identification Number) Documents Required: Identity and Address proof

and one passport size photo of the proposed directors.[information required about directors are

Name, Father's Name, Date of Birth, Nationality, Present Residential address, Permanent

Residential address]

Apply for Digital Signature Documents Required: Identity and address proof of the any one

proposed director

Apply for the availability of the name (Suggest 3-4 name for the new company)

Drafting of Memorandum and Article of association

Pay Stamp Duty on Memorandum and Articles of Association(Now you can pay stamp duty

online electronically also)

File the documents for Company Registration (Form 1, Form 18, Form 32, Power of attorney)

Get the Registration Certificate through email and speed post.


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Registration of the Company withthe Registrar ofCompanies

Sign Memorandum of Association Fees Rs 30,000. It takes 30-75 days

No special retail license needed for

sale of sauces. Gift packs arerequired through multibrand stores

Membership with Indian direct

selling association(IDSA)


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Income tax Application for PANand TIN

Number which costs Rs 5,000. Can be applied online.

Loan license manufacturing No license needed for job and

work basis.

No direct excise duty as we areoutsourcing. But the manufacturewill charge it from us. The exciseduty is 10.30 % for 2010-2011

Generator 45 KVA No license


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Computers: 4 1 for stock manager 1 for Accountant 1 for GM 1 for DM

Refrigerated CarrierVans

Office Furniture andkitchen tools


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Packaging and labeling of

bottles

Software : Tally

Air conditioners: 2

Refrigerator (585 L) :3

Basic Kitchen appliances

Lighting


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Capital requirement

Cost of fixed assets 11,19,200

Total expenses till revenue starts 57,20,851

Sunk cost 42,500

Fixed costs for 2 years 15,53,962

Variable costs for 2 years 19,48,960

Total 1,23,34,433

Depreciation


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pPRICE no. Total

Fixed assets Y1 Y2 Y3 Y4 Y5 Y6Furniture 10000 11 110000 88000 70400 56320 45056 36045 28836 WDV

22000 17600 14080 11264 9011 7209 DEP

Blenders 5000 10 50000 40000 32000 25600 20480 16384 13107 WDV9600 5760 3456 2074 1244 746 DEP

Design boards 300 4 1200 1080 972 875 787 709 638 WDV120 108 97 87 79 71 DEP

Glass Bottle 10 2700 27000 21600 17280 13824 11059 8847 7078 WDV5400 4320 3456 2765 2212 1769 DEP

Packaging 10000 1 10000 8000 6400 5120 4096 3277 2621 WDV2000 1600 1280 1024 819 655 DEP

3 in 1 (printer ,scanner ,

photocopier) 6000 1 6000 4800 3840 3072 2457.6 1966.08 1572.9 WDV1200 960 768 614 492 393.2 DEP

Generator andsound proofing 500000 1 500000 400000 320000 256000 204800 163840 131072 WDV

100000 80000 64000 51200 40960 32768 DEP

Computers 20000 6 120000 96000 76800 61440 49152 39322 31457 WDV24000 19200 15360 12288 9830 7864 DEP

Tally software 100000 1 100000 50000 25000 12500 6250 3125 1563 WDV50000 25000 12500 6250 3125 1563 DEP

Air conditioners 24000 5 120000 96000 76800 61440 49152 39322 31457 WDV24000 19200 15360 12288 9830 7864 DEP

Refrigerator 10000 3 30000 24000 19200 15360 12288 9830 7864 WDV6000 4800 3840 3072 2458 1966 DEP

Kitchen appliances 45000 1 45000 36000 28800 23040 18432 14745 11796 WDV9000 7200 5760 4608 3686 2949 DEP

Total Depreciation 253320 185748 139957 107532 83746 56390TOTALDEP

S l i


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Salaries

Salary permonth

No.Employ

ed Total salary Y1 Y2 Y3 Y4 Y5 Y6

Stock manager 14000 1 14000Field marketing

assistants 15000 2 30000Salesman 13000 1 13000

Production

/distribution

supervisor 18000 1 18000Security guard 10000 1 10000

Peon 4000 1 4000Total salary for a quarter 3,56,000 4,02,280 4,54,576.4 513671 580449 655907

1.130

10%INFLATION


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Y1 Y2 Y3 Y4 Y5 Y6

No of units 6,000 12,000 15,960 21,227 28,232 37,548

No of units different sizes 600 1,200 1,500 1,875 2,344 2,930

Avg selling price per unit of

sauce 1,500 1,950 2,535 3,296 4,284 5,569Avg selling price per unit of

gift packs 700 910 1,183 1,538 1,999 2,599

Total revenue(sales) 9,42,000 24,49,200 42,23,310 72,83,648 1,25,63,438 2,16,73,453

cost of goods sold

Avg cost of unit sold 800 896 1,004 1,124 1,259 1,410

Avg cost gift pack per unit 400 448 502 562 629 705

Cost of ingredients 4,80,000 10,75,200 16,01,617 23,85,770 35,53,843 52,93,804

Cost of gift packs etc. 2,40,000 5,37,600 7,52,640 10,53,696 14,75,174 20,65,244

Total COGS 7,20,000 11,28,960 16,76,881 24,91,139 37,01,360 55,00,329

Gross profit 2,22,000 13,20,240 25,46,429 47,92,509 88,62,078 1,61,73,124

Fixed costs

Salaries 3,56,000 4,02,280 4,54,576.4 5,13,671 5,80,449 6,55,907

Electricity 2,40,000 2,66,400 2,95,704 3,28,231 3,64,337 4,04,414

Carry vans 24,000 26,640 29,570 32,823 36,434 40,441

Telephone bills 1,20,000 1,56,000 2,02,800 2,63,640 3,42,732 4,45,552

Advertising cost 2,00,750 2,22,833 2,47,344 2,74,552 3,04,753 3,38,275

Posters 1,20,000 1,33,200 1,47,852 1,64,116 1,82,168 2,02,207Marketing costs 5,40,000 5,99,400 7,79,220 10,12,986 13,16,882 17,11,946

Stationary costs 12,000 13,320 14,785 19,221 24,987 32,483

Depreciation 2,53,320 1,85,748 1,39,957 1,07,532 83,746 56,390

Total variable expenses 18,66,070 20,05,821 23,11,808 27,16,772 32,36,488 38,87,615

EBIT -16,44,070 -6,85,581 2,34,621 20,75,737 56,25,590 1,22,85,509

interest(10% per quarter) -6,16,721 - 6,16,721 -6,16,721 -6,16,721 -6,16,721 -6,16,721

PBT -22,60,791 -13,02,302 -3,82,100 14,59,016 50,08,869 1,16,68,788

Tax @30% 3,90,691 1,14,630 4,37,705 15,02,661 35,00,636

PAT -22,60,791 -16,92,993 4,96,730 10,21,311 35,06,208 81,68,152


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Balance sheetPARTICULARS Y1

ASSETS

FIXED ASSETS (adjusting fordepreciation) 8,65,480

written off preliminary expenses 4,13,347total fixed asset 12,78,827

CURRENT ASSETSCash at bank 1,25,00,000

TOTAL ASSET 1,37,78,827

LIABILITIEScapital equity 61,67,216.5

+/- loss and gains -22,60,791total equity 39,06,425.5bank loan 98,72,401

TOTAL 1,37,78,827


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Breakeven Analysis

No of total units 37,260

Total selling revenue (Rs) 33,16,140

Avg selling price (Rs) 89

Avg variable cost (Rs) 47.65

Contribution margin 41.41

Total fixed cost 21,67,412

Breakeven 52,864

So we break even after selling 52,864units i.e. in 2nd yr.


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