BUSINESS PLAN BUSINESS PLAN

BALAJI WAFERS PVT. BALAJI WAFERS PVT. LTD. LTD.

International business

PRESENTED BY GROUP NO. PRESENTED BY GROUP NO. VI VI

Hitesh Balwani (02)Vishal Bhurke (05)Vanita Mulchandani (34)Mugdha Patre (40)Jeetu Sachdev (46)

FLOW OF PRESENTATIONFLOW OF PRESENTATIONIntroduction of Balaji Wafers Pvt.

Ltd.Chips IndustryNepalLegal AspectsMarketing StrategyFinance EstimatesFuture Plan

BALAJI WAFERS BALAJI WAFERS PVT. LTD.PVT. LTD.

INTRODUCTION INTRODUCTION

HISTORY: The journey begins in year 1976 by the member of Virani

family Supplying wafers and namkeens to local brands, to the

customers of theaters in Rajkot. Own product line in year 1982 The promoters — brothers, Meghjibhai, Chandubhai,

Bhikubhai and Kanubhai — have built a business empire worth Rs. 250 crore

'Balaji Group' has deep faith in God & in good taste

CONTD….CONTD….

Managing director of balaji wafers and namkeens Chandubhai Virani

Plant: • 85,000 sq. m. area in the outskirts of Rajkot city

•4500 Kg. potato

•1200 Kg. of chips per hour

•Chips and Namkeens are made in bacteria free and stringent hygienic standard environment.

FACTS & FIGURES OF BALAJIFACTS & FIGURES OF BALAJI Business Type Manufacturing

Year of Establishment 1982

Managing Director Chandubhai Virani

Market Share 8% (Total snacks market-

Rs. 3000 Cr.)

Turnover in Gujarat Rs. 125 Cr ( 90 % share-

Potato Wafers;

70% share – Namkeens)

Market Share in

Maharashtra

10%

Market Share in Rajsthan 15%

Banker State Bank of India

PRODUCT RANGE PRODUCT RANGE

Chip

s

Gathiya & Sev

Masala Peanuts

Namkeen

Cont….Cont….NETWORK: Ensures the supply fresh product in any corner of

Gujarat within 24 hours. Network of 300 distributors, 300 dealers and

three lakh retailers.

AWARDS:

Economic Time recognized Balaji Group as 'Sultan of Wafers'

Asia Pacific food online published a special article with 'Chip Off the Old Block' tag

Balaji is also member of Snacks Food Association

STRATEGY: 'Value for money'

CHIPS CHIPS INDUSTRYINDUSTRY

CHIPS INDUSTRYCHIPS INDUSTRYThird world countries are very

habitual to adopt the western culture.

Annual Growth Rate of snacks industry-20% to 30% per annum.

VALUE CHAINVALUE CHAIN

Procurement of Raw MaterialProcurement of Raw Material

Delivery of raw materials to manufacturing plant

Delivery of raw materials to manufacturing plant

Production of chips Production of chips

Transportation to distribution centers Transportation to distribution centers

Delivery to Retailers

Delivery to Retailers

PRODUCTION PROCESS OF PRODUCTION PROCESS OF CHIPSCHIPS

Step 1

Washing of fresh

potatoes

Step 2

Peeling ofwashed potatoes

Step 3

Slicing of washed potatoes

Step 4Washing & rinsing of potato chips in hard water for removal of excessive starch

Step 5

Potato chips frying

Step 6

Flavoring of potato chips

Step 7

Packing of crips after weighting into different pacakets.

WHY NEPAL???WHY NEPAL???

DEMOGRAPHICSDEMOGRAPHICS

Population: 28,563,377 (2009)Age structure:

CONTD…CONTD…Median age: 20.8 yearsReligions: Hinduism 80.2%,

Buddhism 10.7%, Islam 4.2%.

Literacy Rate: 62.8%Languages:Official language - Nepali90 other languagesEnglish-Mostly spoken in Cities,

offices and business person

CONTD…CONTD…

CURRENCY:1 Indian Rupee = 1.63138 Nepalese

RupeeNepalese Rupee (NPR) = 0.61298

Indian Rupee (INR) The Nepalese Rupee-denoted by

NPROfficial currency used in Nepal. The NPR is tied to the Indian Rupee

(INR), being 5/8 its value.

INFRASTRUCTUREINFRASTRUCTUREIsolated from the world's major

land, air and sea transport routes 48 airports and ten of them with

paved runwaysMobile telephone - with increased

accessibility and affordabilityInternet connections

TOURISMTOURISMThe largest industry in NepalSource of foreign exchange and revenueThe tourist industry in Nepal employs

42% of the total working populationMain source of economic sustenance

after agricultureGrowth of organized tourism - gave rise

to higher incomeInformation technology, including

software development, call centers and training, education and fashion

FOOD CULTUREFOOD CULTUREHeavily influenced by Indian and

Tibetan cuisineTraditional Nepalese food is often

described as ‘bland’Healthy and extremely

nourishingDo not have distinctive style of

cooking

THE ECONOMYTHE ECONOMYThe economy is heavily dependent on imports of

basic materialOn foreign markets for its forest and agricultural

products. Imports essential commodities, such as fuel,

construction materials, fertilizers, metals, and most consumer goods

Exports such products as rice, jute, timber, and textiles

Tourism is the base of its economyNepal has GDP growth rate of 2.50 %(2005 est.)Nepal's per capita GDP (PPP) stands at US $

1,370

LEGAL LEGAL COMPLIANCESCOMPLIANCES

CUSTOMS CUSTOMS CLEARANCE CLEARANCE PROCEDURES PROCEDURES

PROCEDURE TO EXPORT PROCEDURE TO EXPORT TO NEPALTO NEPAL Goods are to be cleared from the registered

factory on Nepal Invoice

Invoice is to be presented before the Central Excise officer.

After verification, he will hand over the original copy of the invoice to the exporter.

Duplicate and triplicate copies are handed over to the exporter to give to the Customs officer incharge.

CONTD...CONTD...On arrival at the Land Customs Station, exported

goods are to be presented to the Customs officer

The Customs officer incharge, after verification makes an endorsement on all copies of the invoice.

The original copy is handed over to the exporter and the duplicate and triplicate copies are sent directly to the Nepalese Customs Officer

The Customs officer will return the duplicate copy of the invoice after endorsement and allowing import into Nepal

IMPORT CLEARANCE IMPORT CLEARANCE PROCEDURES PROCEDURES On arrival of the goods, importer has to submit the following

documents◦ import declaration◦ bills of lading◦ commercial invoices◦ transport documents◦ packing list◦ transport documents◦ certificates of origin◦ Insurance◦ bank letters of credit issued by a single copy or swap◦ the Company business license

CONTD…CONTD…Custom officials then review these

documents and inspect the goods.

Customs receipts issued by the accounting department, the clearance of imported

goods will be released.

MARKETING MARKETING STRATEGYSTRATEGY

MARKETING STRATEGYMARKETING STRATEGY

MARKET MIX:

Age Group(Years) Market Mix

5-10 30%

11-20 35%

21-35 20%

36&above 15%

TARGET CUSTOMERS:TARGET CUSTOMERS:ChildrenTeenagers Young peopleTourists

MARKET COMPETITORSMARKET COMPETITORS Uncle Chips

Kurkure

Lays

Other unbranded products

FINANCIAL FINANCIAL ESTIMATESESTIMATES

Particulars Amt. (Rs.)

Sales 54000000Cost of Raw materials (Rs. 120 per kg) 21600000Staff Cost (3.5%) 1890000   Depreciation (1%) 540000Financial Exps. (0.5%) 270000Other Exps. (26%) 14040000   Export License 1000Insurance Cost (5% of Cost) 1917000Transportation Cost (5% of Accumulatd costs) 2000000Currency Risk Hedging (2% of Sales) 1080000Marketing Costs (2% of Sales) 1080000Distributor's Commision (5% of Sales) 2700000Import Duty (10%) 4711800   Total Cost 51829800Profit 2170200

ESTIMATE OF PROFIT AND ESTIMATE OF PROFIT AND LOSS ACCOUNTLOSS ACCOUNT

WHAT IF SALES FALL BY WHAT IF SALES FALL BY 10%...10%...

Particulars Amt. (Rs.)

Sales 48600000Cost of Raw materials (Rs. 120 per kg) 19440000Staff Cost (3.5%) 1701000Depreciation (1%) 486000Financial Exps. (0.5%) 243000Other Exps. (26%) 12636000   Export License 1000Insurance Cost (5% of Cost) 1725350Transportation Cost 1811700Currency Risk Hedging (2% of Sales) 972000Marketing Costs (2% of Sales) 972000Distributor's Commision (5% of Sales) 2430000Import Duty (10%) 4241800   Total Cost 46659850Profit 1940150

FUTURE PLANFUTURE PLAN

FUTURE PLANSFUTURE PLANS

If Profit now …..Then ….

Expansion of export in Bangladesh & UAE

AndExpansion of business to

India

ANY ANY QUESTIONS QUESTIONS

OR OR SUGGESTIONSSUGGESTIONS