C C

FRESH

Business Plan

Manendra Shukla

BP

“We are into this business to earn money, generate employment and ensure quality prices to farmers and quality product to customers.”

• Company name :- CoCofresh agro.

• Place :- 7th milestone, Mumbai highway Road, Belgaum

(Kar)

• Company Business- The project is based on the

processing of "coconut water “with flavors the packaging of

the same in tetra packs add sell them.

COMPANY PROFILE

Why this location- Belgaum

• Few distance from major cities like Mumbai 500,

Bangalore 502, Hyderabad 515,Panji 150 km.

• We benefit coconut farmers in belgaum district.

• We buy coconuts from them at a competitive

rate, process ,pack and sell them.

• Karnataka is the third largest coconut producing

state, growing 1.16 billion nuts a year.

• Maharashtra produce the finest quality alphonso

mangoes in India which is border area of

belgaum.

MISSION

“To be a leading producer of coco water based beverages using the natural essence of coconut and hygienic process, dynamic leadership and commitment to our partners and stakeholders.”

VISION

“To be India’s Premier coconut water Company,

offering nutritious & superior quality tasting drinks to its consumers. By 2016 we aim to achieve 15% of Market Share, and while doing it we would be the best in terms of consumer value, customer service and consistent and predictable growth.”

Why coconut water?

• Widely acknowledged as a health drink

• Whole year demand in market.

• Less wastage and more usage.

• Possibility for expansion into other products.

• Eco friendly product no environmental harm.

Numerous medicinal properties in coconut water

• Excellent tonic for the old and sick

• Effective in the treatment of kidney and urethral stones

• Kills intestinal worms, small pox, chicken pox, measles,

etc.

• Good for feeding infants suffering from intestinal

disturbances.

• Oral rehydration medium Keeps the body cool.

Uses of Coconut

Domestic Uses

Industrial Uses

Problem statement

• The tender coconut sellers have a monopoly on the

market.

• Farmers do not receive adequate compensation.

• Mostly manual labor are used.

• Mediator make huge profits from market

Solution

• Our business plan is to purchase coconuts from the direct

farmers at a competitive price.

• Utilize the rest of the profits to further reinvest in the

business.

• As much as grow the firm we provide bigger returns to

farmers.

• Use automated machinery and advance equipments

Opportunity & Market

• Branded fruit beverage market in India is estimated to be

worth Rs. 1,200 crores( drinks and juices combined)

• Fruit drinks as a category is growing at 18-20 per cent,

carbonated soft drinks are growing at 6-8 per cent.

• Unique type of health drink

• More than 90 % of sales occur through the unorganized

route - juice centers, street corner shops and so on.

Target Market…Primary Market:-– Kids – Fond of Fruit Juice (fond of mango, strawberry)– Teens – More experimental– Youth – Experimental and more buying power– Working People– Housewives– Elderly people

Secondary Market– Travel Industry– Airlines, Railways and Local Transport Systems– Recreational– Movie Theatres, Malls, Amusement Parks.– School, Colleges– Hotels, Restaurants, Bars etc.

Market Segmentation

• Variables Used for Segmentation• 1) Geographic variables• 2) Demographic variables• 3) Psychographic variables• 4) Behavioral variables

Market Segmentation Variables

Geographic : - To serve both domestic and international customers. Metropolitan Cities, major towns of the states. Density of Area:- Urban, Semi-urban,ExUrban Rural. Climate :- Northern, Southern . Country Region :- East,West,North & South.

Demographic : - Age – all age group Gender – Both Male and Female Family size - doesn’t matter Education - doesn’t matter Income – middle & high end consumer Occupation – student, working and retired people nationality/race – doesn’t matter language - doesn’t matter

Market Segmentation Variables…Conti

Market Segmentation Variables…Conti

Personality NO

Lifestyle YES

Value YES

Attitude YES

Psychographic:-

Behavioral : -Benefit Sought Product Usage Rate Brand Loyalty Profitability Income StatusOccasionsAttitude towards Product .

Market Segmentation Variables…Conti

Behavioral…

• Users perceive coconut water as a healthy drink.

• Users drink coconut water as a refreshing alternative to carbonated drinks.

• Users willingly spend on products related to health and lifestyle.

• Users enjoy coconut drinks not only as a means of healthy life, but as an intrinsically enjoyable activity in itself.

Current Competitors…

Jain Agro foods Pvt. Ltd – Bangalore

(Karnatka).

Sakthi Coir Export – Coimbatore

(Tamil Nadu).

Pure Tropic Manufacture – Tiruppur

(Tamil Nadu).

Sri Jayalaxmi foods – Ahemedabad(Gujarat).

Noval Products –Pondicherry

Strength

Adequate availability of raw materials. High consumer retention rate . Natural Product. Weakness

Seasonal availability of fruits Brand acknowledgement Late entry into the market.

SWOT Analysis

Opportuni ty

Participation with a growing industry. Competitive advantage over carbonated soft drinks.Success of incredible India campaignChampions league in 2011

Threats Unstable government policiesRising Global Warming

MARKETING MIX

PRODUCT

COCO FRESH is a 100 percent coconut water which will be produced and marketed by Coco Beverage Ltd. We prefer tetra pack because the product is aseptically packed and it retains the original flavor and tastes  and hence you feel like drinking the water directly from the coconut.

BRAND NAME: COCO FRSEH.

COCO FRESH in three flavors :-

Coco FRESH ( Normal )

Coco FRESH ( Sugar Free )

Coco FRESH ( Mango Flavors )

All Above Three are available in 180ml & 560ml with Tetra Packaging .

PRODUCT LIFE CYCLEOur product lie in Introduction Period of PLC Low sales High costs per customer Negative profits Innovator customers Few competitors

Objective: To create awareness of product Offer a basic product Selective distribution Awareness – dealers and early adopters Induce trial via heavy sales promotion

P R O J E C T L O C AT I O N

Place…

In the initial phase we would be outsourcing coconut processing & packaging of Coco Beverage .

Coconut would be purchased from Belgaum unit &

Processing & Packaging would be outsourced to local producer.

Mode of Transport: Road Transport.

Distributi on Channel

Belgaum

Delhi

Mumbai

Within region

PRICING

As a new comer our pricing strategy is to introduce

our products in the market at lower prices so as to

create huge demand in the market and then compete

with other competitors.

As we come up in the demand, we will increase our

prices and will provide more efficient and affordable drinks .

Pr ic ing Po l i cy …

Apply the concept of providing quality product at optimum price

Provide Lucrative discounts, deals and schemes

Adopt sales oriented objective

Have one price policy to maintain a goodwill among customers.

Pr ic ing s t ra tegy

The factors which will contribute to the success for our juice demands in market:

• High consumer retention rate• Price, a competitive advantage• Natural product• Great distribution network• Well – Health product

Factors…

Promot ional Ideas

Change beverage choices in vending machines at school and collages

Assess the financial impact on school and collage profits

Identify approaches to promote healthful beverage choices and maintain profits for schools and collages

Long-Term Strategy

Contd…. Change advertising on beverage

vending machines

Change beverage choices to water, sports drinks, and 100% fruit juices

Collect and submit monthly financial data from school and collages

Provide a Rs. 3,000 incentive per school in the project

Tie – Up Promotion Strategy

We will tie up with PVR cinemas to increase our branding.

Will be putting up vending machines in every PVR cinemas like – Bangalore, Gujarat, Hyderabad, Maharashtra, MP, NCR, Punjab, UP

Web Marketing…

Facebook :-

Creating a community on facebook.Creating a Fan page on facebook.

Twitter :- Regular tweets on product and event

updates will ensure interactivity.

Processing(Belgaum)

Warehouse(Belgaum)

Tetrapack

Unit

Stalls and

Shops

Farmer

Customer

Transported by rented truck

Transport and Processing

Purchase

Transported by rented

truck

Coconut Water

Processing

TetraPacked Water

Processing of CoCofresh

•Training & Development

• Skills required

•Salaries

• Safety

•Standard Working Environment

H.R. Practices

Financial Estimates

Financial Data

• Form of business : Partnership

• Total cost of the project : 2,94,82,517

• Plant Capacity : Processing of 5000 liter per day

• Means of financing : 50% through partner’s capital

50% through loan

• Major raw material : Coconut

• Total number of workers : 25

• Depreciation rate : WDV @ 15%

• Average DSCR for 3 years : 2.93 times

Machinery Qty. Rate Amount Collection tank 3 4,00,000 12,00,000 Filter 3 3,00,000 9,00,000 Additive mixing tank 2 2,00,000 4,00,000 Boiler 3 3,00,000 9,00,000 Cutter & Filling machine 3 2,50,000 7,50,000 Storage tank 3 4,00,000 12,00,000 Other Machinery 4 1,50,000 6,00,000 Building & warehouse 1 1,20,00,000 1,20,00,000Total Fixed Assets 1,79,50,000 Preliminary Expenses 1,00,000 Furniture & Fixtures 5,00,000 Contingency Margin 1,00,000Total Capital Expenditure 1,86,50,000 Working Capital Needed 1,08,32,517Total Cost of Project 2,94,82,517

Total cost of the project

Particular Sq. ft Rate/sq.ft Total

Building 5000 1500 7500000

Warehouse 3000 1500 4500000

Total Land Required 8000 1500 12000000

Details of the land and Building

Annual Demand estimation for 100% capacity

Product (Tetra pack) Rate/unit No. of unit Amount in Rs.Pure coco fresh (180 ml) 18 5,00,000 90,00,000

Coco fresh mango (180 ml) 20 7,00,000 1,40,00,000

Pure coco fresh (560 ml) 50 5,00,000 2,50,00,000

Coco fresh mango (560 ml) 55 6,00,000 3,30,00,000

Coco sugar free (560 ml) 65 7,00,000 4,55,00,000

Total Sales 30,00,000 12,65,00,000

8200 units per day

Product category Units Total ml Total Ltr

180 ml 5,00,000 90000000 90000

180 ml 7,00,000 126000000 126000

560 ml 5,00,000 280000000 280000

560 ml 6,00,000 336000000 336000

560 ml 7,00,000 392000000 392000

Annual Total ltr required 12,24,000

Annual Total coconuts required 61,20,000

Raw material estimation for 100% Demand capacity

From 10,000 coconut you get 2000 ltr

Particulars 1st Year 2nd Year 3rd Year

Sales / Receipts10,12,00,00

0 10,75,25,000 11,38,50,000Manufacturing Expenses Raw materials 5,05,60,000 5,37,20,000 5,68,80,000 Wages 24,00,000 25,50,000 27,00,000 Repairs & Maintenance 5,06,000 5,37,625 5,69,250 Power & Fuel 50,60,000 53,76,250 56,92,500 Other Overhead Exp. 50,60,000 53,76,250 56,92,500 Depreciation 27,67,500 23,52,375 19,99,518 Production Cost 6,63,53,500 6,99,12,500 7,35,33,768Administrative Expenses Salary 26,40,000 27,72,000 29,10,600 Telephone Exp. 1,01,200 1,07,525 1,13,850 Stationery 6,07,200 6,45,150 6,83,100 Marketing & Dist. Exp 80,96,000 86,02,000 91,08,000 Packaging and designing 75,90,000 79,69,500 83,67,975 Miscellaneous Exp. 50,60,000 53,76,250 56,92,500Administration Cost 2,40,94,400 2,54,72,425 2,68,76,025

Projected Profit and Loss A/c

Conti…

Partner's Remuneration 14,40,000 14,40,000 14,40,000

Prilim. Exp. W/OFF 20,000 20,000 20,000

EBIT 92,92,100 1,06,80,075 1,19,80,206

Interest on Term Loan @ 14% 13,05,500 11,07,999.33 8,82,848

WC Loan @ 12% 6,49,951 6,49,951 6,49,951

EBT 73,36,649 89,22,124 1,04,47,406

Tax @ 30% 22,00,994 26,76,637 31,34,222

EAT 51,35,654 62,45,487 73,13,184

PROJECTED BALANCE SHEET Particular 1 2 3LIABILITIES Partner's capital 1,47,41,258 1,47,41,258 1,47,41,258P&L A/c 51,35,654 1,13,81,142 1,86,94,326Term Loan 79,14,281 63,06,061 44,72,691WC Loan 54,16,258 54,16,258 54,16,258Total 3,32,07,452 3,78,44,719 4,33,24,534 ASSETS Gross Fixed Assets 1,84,50,000 1,56,82,500 1,33,30,125less: Depriciation 27,67,500 23,52,375 19,99,518Net Fixed Assets 1,56,82,500 1,33,30,125 1,13,30,606Priliminary Expenses 80,000 60,000 40,000Debtors 37,46,505 40,14,113 45,49,328Inventory 49,45,152 50,34,354 52,12,759Cash in Hand/Bank 87,53,295 1,54,06,127 2,21,91,840Total 3,32,07,451 3,78,44,719 4,33,24,533

PROJECTED CASH FLOW STATEMENTParticular 1st Year 2nd Year 3rd YearNet Profit (EAT) 51,35,654 62,45,487 73,13,184Add:1)Depreciation 27,67,500 23,52,375 19,99,5182)Prilim. Exp. W/Off 20,000 20,000 20,0003)Interest on: Term Loan 13,05,500 11,07,999 8,82,848 WC Loan 6,49,951 6,49,951 6,49,951Term Loan received 93,25,000 0 0WC Loan received 54,16,258 0 0Partner's capital 1,47,41,258 0 0Total 3,93,61,121 1,03,75,812 1,08,65,502Less:Fixed assets Invest. 1,85,50,000 0 0Repay of TR Loan 27,16,219 27,16,219 27,16,219Intrest paid on W.C 6,49,951 6,49,951 6,49,951Current AssetsDebtors 37,46,505 2,67,607 5,35,215Inventory 49,45,151 89,202 1,78,405Total 3,06,07,826 37,22,980 40,79,790Opening Balance 0 87,53,295 1,54,06,127Surplus 87,53,295 66,52,832 67,85,712Closing Balance 87,53,295 1,54,06,127 2,21,91,840

Particular 1st Year 2nd Year 3rd Year

Debt service coverage ratio 2.58 2.91 3.29

Interest coverage ratio 4.75 6.07 7.82

Break even points in % 66.44% 62% 59.59%

Return on investment 34.83% 42.36% 49.61%

OTHER KEY INFORMATION

Excel Sheet

Thank you!!!!