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© Super Salads | www.supersalads.co | [email protected] | +917972018416

RCOEM TBI Foundation Startup Internship Program 2019

Progress Report

Monthly Salad Subscription Service

Project Report submitted toShri Ramdeobaba College of Engineering & Management, Nagpur

in partial fulfillment of requirement for the award ofdegree of

Bachelor of Engineering

In

MECHANICAL ENGINEERING

By

Tanmaya Shailendra Sathe

Guide

Dr. K. N. Agrawal & Prof. P. A. Dwaramwar

Mechanical EngineeringShri Ramdeobaba College of Engineering & Management, Nagpur

(An Autonomous Institute affiliated to Rashtrasant Tukdoji Maharaj Nagpur University Nagpur)

May 2019



Progress Report





In


By


Guide




May 2019



Progress Report





In


By


Guide




May 2019


CERTIFICATE

This is to certify that the Mr Tanmaya Sathe , VII Semester B.E. Mechanical Engineering isworking on his startup idea “Monthly Salad Subscription Service” with RCOEM TechnologyBusiness Incubators Foundation (A Section 8 Company Incorporated under Companies Act2013) from 22nd December 2018 till date. He has developed his startup Idea and carried outProduct, Service Development, Business Plan preparation and execution under supervision ofinternal and external mentor appointed by RCOEM TBI Foundation. He is submitting the abovework to the Rashtrasant Tukdoji Maharaj Nagpur University, Nagpur in partial fulfillment ofthe award of a Bachelor of Engineering in Mechanical Engineering during the academic year2018-19.

Date:

Place:

Prof. P. A. DwaramwarMentor

Dean Industry InstituteInteraction Cell and

DirectorRCOEM TBI Foundation

Dr. K. N. AgrawalMentor

Department ofMechanicalEngineering

Dr. M. M. GuptaH.O.D.,

Department ofMechanical Engineering


CERTIFICATE


Date:

Place:









CERTIFICATE


Date:

Place:









DECLARATION

I, hereby declare that the Startup Progress Report titled “Monthly Salad Subscription Service”submitted here in, has been carried out by me in the RCOEM Technology Business IncubatorsFoundation (A Section 8 Company Incorporated under Companies Act 2013) of ShriRamdeobaba College of Engineering and Management, Nagpur. The work is original and has notbeen submitted earlier as a whole or in part for the award of any degree/diploma at this or anyother Institution /University.

Date:

Place:

Tanmaya Sathe (71)



ACKNOWLEDGEMENT

With immense pleasure and great respect, I take this opportunity to express deep sense of

gratitude to my college Shri Ramdeobaba College of Engineering & Management, Nagpur for

providing me the opportunity to work on my startup idea “Monthly Salad Subscription

Service”. I would also like to sincerely thank my mentor Prof. P. A. Dwaramwar, Dean Industry

Institute Interaction Cell and Director RCOEM TBI Foundation, Shri Shashikant Chaudhari,

Director RCOEM TBI Foundation and Dr. K. N. Agrawal for their invaluable guidance,

inspiration, constant encouragement and motivation throughout the projectwork.

I also express my sincere gratitude towards Dr. M M Gupta, Head of Department of

Mechanical Engineering, RCOEM, Nagpur, for his invaluable guidance and motivation to do this

project work.

I am indebted to the faculty members of Department of Mechanical Engineering,

RCOEM, Nagpur, for giving me valuable time and helping me to get through the difficulties that

came across at each stage of project work.

I would like to express my special gratitude and thanks to Dr. Rajesh Pande, Principal,

RCOEM, Nagpur, and all board of directors of RCOEM TBI Foundation for providing

necessary support and encouragement to carryout the startup related work.

Last but not the least, I am very much thankful to my parents and friends who directly or

indirectly supported me at every stage to bring this project towards successful completion.

IncubateeTanmaya Sathe (71)


1. Introduction:Super Salads is a subscription-based salad delivery service aimed at providing freshlycut, ready to eat healthy salad at your desk / doorstep. The overall goal of super salads isto inculcate a habit of eating right and eating healthy through providing daily salad mealsthat are well balanced and nutrient rich.

Staying healthy is becoming ever more important in this era, as obesity is on the rise andnumerous other environmental factors affecting one’s health, it becomes imperative thatone takes care of himself / herself. One of the primary factors that affects a person’shealth significantly is his / her eating habits, people although wanting to eat healthy eithercannot afford to spend time, or do not have the means at their disposal to do so. Thiscoupled with lack of alternatives to junk food gives very little incentive for someone tomaintain a healthy eating habit.

2. Market Potential:The current healthcare segment in India especially in nutritious and healthy eating is in avery nascent stage. However, a significant upward trend has been seen as people arebecoming more conscious about their health and aware about the need to eat healthy andstay fit. In the last year alone more than 50 lakh people were catered to in health-conscious segment in the top six. The current market size for health-conscious segmentstands to be Rs. 12,500 crore and is expected to grow by 15% year on year.

i. The cost of machinery and equipment is of particular make and prices areapproximate.

ii. All the operations involved in preparation of salads will be done in singlecentralized cloud kitchen.

iii. The skilled and semi-skilled workers for preparation are available in the localarea.

iv. The rental value of the land and built-up area has been stipulated on the basis ofrate prevailing in the commercial area. It may vary from place to place.

v. The provisions made in other respects viz; personnel, utilities, raw material andoverhead etc. are based on the prevailing market rates.

vi. All the machinery, raw material will be sourced locally and will be according toseason.

Super Salads not only aims to provide a person with just a bowl of salad everyday butrather help him / her stick to eating healthy by providing delicious and different saladsevery day and helping one achieve his / her own health targets.

3. Basis and Presumptions:


4. Implementation Schedule:The major activities in the implementation of the project has been listed and the averagetime for implementation of the project is estimated at 6 months:

Sr. No Activity Time (Months)1. Preparation of project report 12. Registration and other formalities 23. Conducting market research and Finalizing recipes

accordingly.2

4. Verifying recipes with nutritionist and making necessarymodifications.

2

5. Identifying required ingredients and finding high quality,best price local suppliers.

2

6. Preparing recipes for Stage one Taste Trials. 17. Find and Identify total cost per bowl taking into

consideration:

1. Required ingredients.

2. Preparation of each type of recipes.

3. Labor cost.

4. Packaging and branding cost.

5. Logistics cost.

1

8. Kitchen & Machinery:1. Placement of orders2. Procurement3. Gas connection and Electrification4. Installation and testing of Equipment

1

9. Complete product branding along with packaging. 110. Product photo shoot for website and social media. 1.511. Prepare marketing material to be sent out to bloggers and

other media.2

12. Prepare recipes and start taste trial with food bloggers,chefs, nutritionist and potential customers.

2

13. Accommodate necessary taste modifications and beginearly bird program.

3

14. Roll out complete launch of product. 1

Note:1. Many of the above activities shall be initiated concurrently.2. Procurement of raw materials on large scale commences from the 6thmonth onwards.


5. Technical Aspects

i. General process flowThere is a total of 10 types of recipes that are going to be prepared by thecentralized kitchen, the exact preparation process varies for each and every recipe.Therefore, this requires various ingredients and equipment along the way. The in-detail quantities and method of preparation will be laid out later in this report. Theraw material is initially procured from local wholesaler and in a later stage will bedirectly sourced from farmers.

The generalized process consists of few major steps that include:

ii. Raw Material procurement methodologyThe raw material required for the defined recipes were finalized taking intoconsideration not only the recipes requirement itself but also how muchnutritional value each ingredient add the that recipe as a whole. Prime focus wasgiven to the quality of the product at the time of procurement and the manner inwhich it had been stored before procurement. Special care is taken to ensure thatthe procured product is free of unnecessary additives in the case of packagedproducts and any other pesticides for fruits and vegetables.

The primary determining factor for raw material procurement was quality. Qualitywas given top most priority and a detailed study was conducted for best qualitywholesalers for vegetables, fruits and spices alike. Secondly, special care wastaken in identifying the storage conditions before the material was procured andhygiene maintained duringits handling.

Once top-quality wholesalers were identified cost for each and every ingredientrequired was calculated and the best fit was selected and further negotiations werecarried out.
















iii. Pre-Processing of Raw materialAfter procurement of raw material is completed, a thorough inspection is carriedout to ensure the material meets the quality standards. Fruits and vegetables arewashed and cleaned of any prevailing dirt or other insects that might have comealong and sent for further processing.

Further processing involves cutting of theses fruits and vegetables according tothe specified shapes required by the recipe. Various vegetables are cut intospecified shape using different type of tools and food processing equipment.Primarily knifes, vegetable peelers and spiralizers are used. Apart from this a foodprocessor is used for the preparation of dressing and other toppings used togarnish the salads.

iv. Preparation of saladsPreparation of salads involves multiple step in various order depending upon thetype of salads. A typical salad preparation would involve adding of freshly cutfruits and vegetables in the decided quantity, tossing them, adding requiredseasoning and dressing and mixing it well in the salad bowl. Every salad bowlconsists of non-starchy vegetables, fats, starches and proteins and leafy greens inpre decided proportions according to the recipe to balance out the nutritionalvalue at the same time maintaining the taste.

v. Selection of PackagingThe selection of packaging was done based on four important factors namelyshape, quantity, durability and ability to preserve food. As the primaryrequirement for the shape was that it should represent a bowl and should have aminimum storage capacity of 400 ml, accordingly multiple suppliers wereidentified locally as well as internationally.

Key Considerations such as the suppliers’ ability to provide salad bowls on shortnotice, Cost of shipping from international supplier verses procuring it locally,minimum order quantity required by supplier for production and credit periodoffered. Once the best fit suppliers were identified further negotiations werecarried out and samples of each were ordered.

The samples procured were tested on various parameters, prime focus was givento the ability of the container to preserve food safely in varied condition. Thecontainers were tested with various types of storage conditions at differenttemperatures and change in the integrity of package was noted. Apart from thisanother important factor was for it to be leak proof, salads were stored in thecontainer and it was tilted to various angles with varying forces and then checkedfor leaks.


Ability to preserve food was tested by storing prepared salads overnight in coldstorage and checking for shrinkage in quantity, change in taste, difference incrunchiness of vegetables and overall appearance the next day and the best fitsalad bowl was chosen. The Branding and packaging were done in accordancewith FSSAI Standards.






vi. Mode of deliveryThe Prepared Salad bowls will be stored in a polyester insulated and waterproofbag having capacity of 67 liters. The design of bag is so that the requiredtemperature for the salad to remain fresh will be maintained. There are strapsavailable over the shoulders as well as the stomach thereby giving a firm hold andmaking it easy to wear for the delivery boy. Primary mode of transportation willbe two-wheeler vehicles preferably motor bikes to save on fuel costs.

The Location of the centralized kitchen is chosen so that it is in close proximityfrom all the business centers and IT Park of the city, hence placing it at amaximum range of 8 kilometers from any potential customer. An approximatecost of Rs 2.25 per kilometer was calculated and accordingly delivery cost wasincorporated into the total pricing of salad bowl.

vii. Quality Control and StandardQuality and hygiene in procurement, preparation, packaging, handling of salads isdone in accordance with the guidelines laid out by the Food Safety andStandards Authority of India.


6. Financial Aspects

A) Fixed Capitali) Land and Building (Per Month) (Rented)

Built up Area (Total) – 400 Sq. Mtrs@ Rs.20/-Sq. Mtr MonthCold Storage – 50 Sq. Mtrs.Salad Preparation – 150 Sq. Mtrs.Packaging – 50 Sq. Mtrs.Rent payable/month Rs. 8,000 Rs. 8,000/-

ii) Machinery and EquipmentSrNo.

ItemDescription

Qty.(Nos)

Value(In Rs.)

1. INALSA INOX 1000-watt FoodProcessor

2 15,000/-

2. Renberg Stainless Steel Knife Set, 6-Pieces

1 300/-

3. Emeret wooden natural bamboo kitchenchopping cutting slicing board

3 975/-

4. Ganesh Vegetable Dicer, 12 CuttingBlades

3 1,440/-

5. Bagonia 3-In-1 Rotational VegetablePeeler, Julienne Slicer and Shredder

2 600/-

6. Rockwell Green Deep Freezer (250Liters, Color: White)

1 21,000/-

7. Solimo Stainless Steel 4-Piece Tope SetWithout Lid

1 760/-

8. Solimo Hard Anodized Sauce Pan, 16cm/1.5L

1 800/-

9. Philips Viva Collection HD4928/012100-Watt Induction Cooktop (Black)

1 2,320/-

10. Floraware Measuring Cup Spoon KitchenSet - 8Pcs (Black)

3 396/-

11. Mango wooden Serving and CookingSpoon/Spatula Kitchen Utensil

2 560/-

11. TRIAGE Chief Insulated Meal Delivery67L Bag (BLACK)

2 4,590/-

12. Office equipment, furniture and workingtable etc.

- 25,000/-

Total Fixed Capital: Rs. 73,741/-


B) Working Capital (Per Month)i) Staff and Labor (Per Month)

SrNo.

Designation No. ofPersons

Salary/month(In Rs.)

Total Salary(In Rs.)

1. Manager 1 5000 5,000/-2. Semi-Skilled Worker 2 2500 5,000/-3. Cleaner 1 500 500/-4. Delivery Boy 2 1500 3,000/-

Total: 13,500/-Perquisites @ 15% on the total salary 2,025/-

Total: 15,525/-

ii) Raw Material (Per Month)

SrNo.

Ingredients Unit Price(In Rs.)

RequiredQty.

Total Cost(in Rs.)

1. Cauliflower 20 / Kg 17 Kg 3402. Capsicum 50 / Kg 13.5 Kg 6753. Spinach 20 / Bundle 17 Kg 3404. Cabbage 15 / Kg 8.5 Kg 127.55. Tomatoes 20 / Kg 40 Kg 8006. Mint Leaves 15 / Bundle 4.5 Kg 67.57. Coriander 18 / Bundle 5.5 Kg 998. Pomegranate Seeds 50 / Kg 8.5 Kg 4259. Lemon 2 / Piece 254 Pc. 508

10. Carrot 20 / Kg 9 Kg 18011. Ginger 80 / Kg 1 Kg 8012. Red Onion 10 / Kg 42 Kg 42013. Garlic 100 / Kg 750 gms. 7514. Potatoes 12 / Kg 29 Kg 34815. Spring Onion 30 / Kg 17 Kg 51016. Cucumber 20 / Kg 12 Kg 24017. Pumpkin 25 /Kg 13.5 Kg 337.518. Red Bell Pepper 80 /Kg 8.5 Kg 68019. Yellow Bell Pepper 80 /Kg 8.5 Kg 68020. Frozen Corn 140/ Kg 11 Kg 154021. Frozen Paneer 320/Kg 7 Kg 224022. Olive Oil 200 / Liter 9.5 Liters 190023. Mushroom 250 / Kg 12 Kg 300024. Chaat Masala 400/Kg 1 Kg 40025. Penne Pasta 175/Kg 17 Kg 297526. Pepper 500/Kg 1 Kg 50027. Beat Root 20 / Kg 17 Kg 34028. Melon & Flax seeds 500/Kg 3.5 Kg 1750


29. Oregano Seasoning 260/Kg 2.5 Kg 65030. Peri Peri Soya Chips 350/Kg 8.5 Kg 297531. Chili Powder 210/Kg 1 Kg 21032. Salt 12/Kg 2 Kg 2433. Mustard seeds 40/Kg 500 gms. 2034. Sesame Seeds 140/Kg 10 Kg 140035. Chauli Leaves 20 / Bundle 17 Kg 34036. Matki 77/Kg 8 Kg 61637. Moong 104/Kg 8 Kg 83238. Chana 80/Kg 17 Kg 136039. Chick Peas 142/Kg 11 Kg 156240. White Beans 61/Kg 13.5 Kg 823.541. Red Kidney Beans 61/Kg 13.5 Kg 823.542. Cumin 275/Kg 1 Kg 27543. Raw Mango 60 / Kg 3 Kg 18044. Green Chilly 15 / Kg 300 gms. 545. Brown Sugar 88 / Kg 1 Kg 8846. Grated Coconut 200 / Kg 850 gms. 17047. Corn Flakes 60 / Kg 4.5 Kg 27048. Hand Gloves 200/100pc 1 Pc. 20049. Head Cover 70/10pc 1 Pc. 70

Total: 34,471.5/-

Note:1. Unit prices are seasonal and are bound to change.2. Unit prices are average prices taken from month of January to March

2019.3. Required quantity is calculated for 50 Subscribing Customers per month.4. Above calculations considers a 27 working days month.

iii) Utilities

Sr No. Description Cost (In Rs.)1. Power 300 units @ Rs.6.73 per unit 2,019/-2. Water 50 units @ Rs. 16.26 per unit 813/-3. Fuel Cost 6,000/-

Total: 8,832/-

iv) Other Contingent Expense (Per Month):Sr No. Description Cost (In Rs.)

1. Rent 8,000/-2. Postage & Stationery 2,000/-3. Telephone 1,000/-


4. Repair & Maintenance 2,000/-5. Advertisement & Publicity 5,000/-6. Miscellaneous Expenses 2,000/-7. Insurance & taxes 2,000/-8. Packaging (1350 X 7 Rs.) 9,450/-

Total: 31,450/-

v) Total Recurring expenses (Per Month):Sr No. Description Cost (In Rs.)

1. Salary & Wages 15,525/-2. Raw Materials 34,471.5/-3. Utility 8,832/-4. Other Contingent Expenses 31,450/-

Total: 90,278.5/-

C) Total Capital InvestmentsSr No. Description Cost (In Rs.)

1. Fixed Capital 73,741/-2. Working Capital on 3 months basis – Rs.90,278.5 X 3 = 2,70,835.5/-

Total: 3,44,576.5/-

7. Financial AnalysisA) COST OF PRODUCTION (Per Annum):

Sr No. Description Cost (In Rs.)1. Total Working/Recurring Expenditure Per Year 10,83,342/-2. Depreciation on machinery and equipment @ 10% 7,374.1/-3. Depreciation on office equipment, furniture etc. @

20%5,000/-

4. Interest on total capital investment @ 16% per annum 55,132.24/-Total Cost of Production: 11,50,848.34/-

Say: 11,50,850/-

B) TURN OVER (Per Annum):Item No of Subscribers /

YearRate / Month

(Rs.)Total Sales

(Rs.)Super Salads MonthlySubscription Service

50 X 12 = 600 2500 15,00,000/-

Total: 15,00,000/-


C) PROFIT Per Annum (Before Taxes):Turn Over - Cost of Production15,00,000/- - 11,50,850/- Rs. 3,49,150/-

D) NET PROFIT RATIO (Per Annum):Profit/annum X 100

Turnover (Sale) /Annum3,49,150/- X 100

15,00,000/-= 23.27%

E) RATE OF RETURN:Net Profit/annum X 100Total Capital Investment

3,49,150/- X 1003,44,576.5

= 101.32%

Say: 101%

F) BREAK EVEN POINT:Fixed Cost (Per Annum):Sr No. Description Cost (In Rs.)

1. Rent 96,000/-2. Depreciation on machinery and equipment @ 10% 7,374.1/-3. Depreciation on office equipment, furniture etc. @

20%5,000/-

4. Interest on total capital investment @ 16% perannum

55,132.24/-

5. 40% of Salaries & Wages 74,520/-6. 40% of other contingent expenses (excluding rent &

insurance)1,02,960/-

Total Fixed Cost: 3,40,986.34/-Say: 3,40,990/-

Break Even Point:

Fixed Cost X 100Fixed Cost + Profit

3,40,990/- X 1003,40,990/- + 3,49,150/-

= 49.4%


8. ConclusionThe above project report clearly lays out the details of planning and implementation of asuccessful salad subscription service. Details about each and every factor concerning theproject are laid out in depth and a complete analysis is carried out for the same. Apartfrom this all financial aspects related to the project are discussed and a in detail analysishas carried out.

Documents

Scanned by CamScannerrknec.edu/NAAC2/03/3.3/3.3.4/3.3.4 E-Sanction Order(startup proofs)… · RCOEM TBI Foundation Startup Internship Program 2019 Progress Report Monthly Salad Subscription