camis final
TRANSCRIPT
-
7/31/2019 CAMIS Final
1/39
India-Europe International Business School
BUSINESS PLAN
ON
CAMIS PRIVATE LIMITED
By
Nitesh Gupta
Roll. No. 20100808
MBA | Finance
Submitted to
MR. ANUP AWASTHI
PROFESSOR
ENTREPRENEURSHIP & SMALL BUSINESS MANAGEMENT
-
7/31/2019 CAMIS Final
2/39
C A M I S P R I V A T E L I M I T E D Page 2
BUSINESS PLAN 2012
CAMIS PRIVATE LIMITED
Contents
Contents ........................................................................................................................................................ 2
TIMELINE ....................................................................................................................................................... 3
PROJECT GANTT CHART ................................................................................................................................ 4
EXECUTIVE SUMMARY .................................................................................................................................. 5
VISION ........................................................................................................................................................... 6
MISSION ........................................................................................................................................................ 6
INDUSTRY ANALYSIS ...................................................................................................................................... 7
BUSINESS IDEA ............................................................................................................................................ 21
SALES REVENUE STRUCTURE ...................................................................................................................... 22
HUMAN RESOURCE PLANNING ................................................................................................................... 23
SALARY STRUCTURE: ................................................................................................................................... 24
ORGANIZATION STRUCTURE ....................................................................................................................... 24
BUSINESS STRATEGY ................................................................................................................................... 25
MARKETING PLAN ....................................................................................................................................... 28
KEY MARKETS & SEGMENTATION ........................................................................................................... 28
MARKETING OBJECTIVES FOR THE FIRST YEAR ....................................................................................... 28
OBJECTIVE, STRATEGY & ACTION PLAN .................................................................................................. 29
SALES PLAN ............................................................................................................................................. 32
AGRO PROCESSING RELIEF MEASURES: ...................................................................................................... 34
FINANCIALS ................................................................................................................................................. 35
PROFIT & LOSS ACCOUNT ........................................................................................................................... 35
BALANCE SHEET .......................................................................................................................................... 37CASH FLOW ................................................................................................................................................. 38
REFERENCES ................................................................................................................................................ 39
-
7/31/2019 CAMIS Final
3/39
C A M I S P R I V A T E L I M I T E D Page 3
BUSINESS PLAN 2012
TIMELINE
Project Timeline Business Plan Schedule
Week Task Deliverables
Week 1 Brainstorming on thebusiness idea, Preparing theoutline structure &discussion with theconcerned faculty about thebusiness plan
Finalising the Businessplan idea
Week 2-4 Industry analysis andbrainstorming about a foodprocessing company
Executive Summary, Vision,Mission, type of Company& Business Idea
Week 5-6 Making the requiredresearch about the differentaspects of a food processingcompany
Marketing Plan, Basic CostStructure & Revenuestructure.
Week 7 Buffer Week
Week 9 Estimating the financials forthe firm and projections for thefuture
Financial statements for thenext three years
Week 8 Compilation of the data ,Discussions on the datacollected, Final Report andConclusion
Final report with Completeinformation
-
7/31/2019 CAMIS Final
4/39
C A M I S P R I V A T E L I M I T E D Page 4
BUSINESS PLAN 2012
PROJECT GANTT CHART
Week
1
Week 2 Week 3 Week 4 Week
5
Week
6
Week
7
Week
8
FinalisingtheBusinessplan ideaExecutiveSummary,Vision,Mission, typeof Company
& BusinessIdea
MarketingPlan, BasicCost Structure& Revenuestructure.
Financialstatements forthe next threeyears
Compilationof the report
FinalReportPreparation
-
7/31/2019 CAMIS Final
5/39
C A M I S P R I V A T E L I M I T E D Page 5
BUSINESS PLAN 2012
EXECUTIVE SUMMARY
CAMIS is one of the pioneers in the processing of agricultural products, is currently within its
first year of operation. As of 2012 the firm stands as the only company to offer such services.
Since we are operating globally CAMIS faces economic forces like the fluctuating wealth of our
clients as well as outside forces. Besides economic and competitive forces, CAMIS is also subject
to legal and regulatory forces. We are a private limited company registered with the Indian
Companies act 1956.. Our firm follows all laws regarding our business and hiring of employees.
CAMIS target all the people who have the need of processed and good quality agricultural
products. In the future, as per the financial stability of the company we will also providetransportation facilities to our clients.
The SWOT analysis identifies the Strength, Weaknesses, Opportunities and Threats associated
with CAMIS. These traits are compared against many economic, environmental, and social
factors that could potentially affect the success of our company. The analysis also considers our
competition and their potential direct impact on CAMIS. We heavily assess CAMIS operations
and how our strengths and weaknesses relate to our operations.
The Business Resources section of the plan specializes in explaining the financial and human
resources available to the firm as well as the experience and expertise already accessible. Our
financial resources, enumerated in this report primarily for short term concerns within three to
five years, will come from cash on hand and potentially from discounting of bills. Human
resources are split into skilled and unskilled divisions. Most of the funds used for training will be
spent on the skilled divisions of management, where it is most needed. Each of our top three
executives is extremely experienced and well regarded in the industry and play a key part in the
success of our firm.
The Business Strategy consists of a list of specific objectives followed by detailed plans of how
to achieve these objectives. CAMIS have four main objectives:
Cover a large market share within 3 years. Increase net income by at least 15% each year Expand our brand name and become recognized
To achieve these objectives, our strategy consists of:
-
7/31/2019 CAMIS Final
6/39
C A M I S P R I V A T E L I M I T E D Page 6
BUSINESS PLAN 2012
Seasonal products: Medium price, Medium volume strategy, Medium Quality Regular Products: Low price, High volume strategy, High quality High awarenessDetailed financial projections are illustrated in graph form in the Financial Projections and
Budgets section of the business plan. Graphs measure the competitive advantage CAMIS has
against the industry. In addition, we have also projected expected values for our income
statement for 2013 & 2014.
Controls and Evaluation show in detail how the outcome of our plan will be monitored and
measured. We set performance standards and financial controls as goals that our company
aspires to attain in the upcoming years. We also set a scale to monitor our procedures as well
as a set standard to measure our results. Last, we talk about performance analysis and
compared our company data to all other companies in the food processing industry.
CAMIS
We deliver quality
VISION
To produce a product that will maximize our customers satisfaction by
giving them the possibility to create a better standard of living. A living
backed with good quality processed agricultural products for the whole
family
MISSION
By 2015 we will be one of the leading companies in the food processing
industry for providing good quality processed agricultural products, also our
brand will be among the valued brands in the country.
-
7/31/2019 CAMIS Final
7/39
C A M I S P R I V A T E L I M I T E D Page 7
BUSINESS PLAN 2012
INDUSTRY ANALYSIS
Basic structure of the FOOD PROCESSING INDUSTRY
The chart above describes the process i.e. the Entire Value Chain for a Private Entrepreneur from Demand
Estimation to Consumption. Government i.e. Central as well as State government along with its agencies
supports the farmer and processing units to encourage this sector. The Stages involved in the value chain
are:
1. Market: In this stage, the Entrepreneur estimates the demand for crops and decides which
crop to sow
2. Input: After deciding on specific crops, the entrepreneur ploughs the crop with the use offertilizers, pesticides, nutrients and water to realize a good crop.
3. Pre Harvest: After a good crop has developed, Pre Harvest involves maintaining the crop till
harvest with the use of Latest technology and Fertilizers.
4. Harvesting: It involves the process of separating a full grown crop for processing, packaging,
transportation and finally for consumption.
-
7/31/2019 CAMIS Final
8/39
C A M I S P R I V A T E L I M I T E D Page 8
BUSINESS PLAN 2012
5. Post Harvesting: After Harvesting, the crop goes through a chain of processes to filter the crop
on the basis of Quality and many other parameters. The crops thus chosen are packaged
accordingly for safe transportation to the market. In case of perishable products it also requires to
be processed for their preservation.
6. Transportation: It involves the physical movement of the crop and processed food from the
farm to the actual Market.
7. Marketing: Marketing involves providing sales platform for the food products. Sometimes it is
done by the producer himself. Government creates a market through setting up APMC Depots,
online websites and also through trade exhibitions.
8. Market: Finally, the Chain gets completed when the crop reaches the market for consumption
and the farmers as well as the processing units get the money out of it.
COUNTRY-WISE LEVEL OF PROCESSING
Country wise level of processing
While India has an abundant supply of food, the food processing industry is still nascent:
Despite these low volumes, the processed food industry is one of the largest industries in the
country - it is ranked fifth in terms of production, consumption, export and expected growth.
Processed food industry accounts for 13 per cent of the countrys exports and 6 per cent of total
industrial investment. The food industry size is estimated at Rs.9100 billion and the food
processing industry at Rs.350 billion. According to official data, India exported about 17.5
million tone of agri and processed foods worth Rs 31,870 Crore ($ 6639.58mn.) in FY08 against
10.9 million tone valued at Rs 21,805.9 Crore ($4361.2mn.) the previous year which shows
growth of more than 45% in terms of value.
-
7/31/2019 CAMIS Final
9/39
C A M I S P R I V A T E L I M I T E D Page 9
BUSINESS PLAN 2012
CHALLENGES IN FOOD PROCESSING INDUSTRY
Unprocessed foods are susceptible to spoilage by biochemical processes, microbial attack andinfestation. The right post harvest practices such as good processing techniques, and properpackaging, transportation and storage (of even processed foods) can play a significant role inreducing spoilage and extending shelf life. The challenges in processing lie in retaining thenutritional value, flavor, aroma, and texture of foods, and presenting them in near natural formwith added conveniences. Besides, processed foods need to be offered to the consumer inhygienic and attractive packaging, and at low incremental costs. The challenges for thepreservation, distribution and processing sectors are diverse and demanding, and need to beaddressed on several fronts to derive maximum market benefits. Presently, the organizationsaddressing the educational and R & D requirements are too few, and there is a pressing need forsupplementing their efforts. In the emerging scenario, the Food Engineering professional needsto develop sufficient awareness and appreciation of the relevant principles of life sciences,and physical sciences, as well as of a wide variety of other topics including: nutrition,preservation and storage techniques, processing unit operations, bio-processing, wastemanagement, distribution and supply chain management, food laws and regulations and so on.Besides, the professional needs to develop an appreciation of R&D and innovation in criticaltechnology areas such as: newer or novel process development in preservation and storagetechniques, rheology, colloids and dispersal systems, packaging-polymers and composites,sensors for detection and process control, bioprocess engineering etc.
OPPORTUNITIES IN FOOD PROCESSING INDUSTRY
Diverse agro-climatic conditions lead to a wide-ranging and large raw material base suitablefor food processing industries in India. Currently a very small percentage (less than 2%)of these is processed into value added products, leaves opportunity to explore in the sector. Oneof the biggest emerging markets, with more than 1 billion population and 250 million strongmiddle class sets a large consumer base within the country. India is the seventh largest country,with extensive administrative structure and independent judiciary, a sound financial &infrastructural network. Stable and flourishing democracy is also an opportunistic attribute ofthe country.
Increasing literacy, rapid urbanization and rising per capita income resulting in rapid growth andchanges in demand patterns. This is creating great opportunities for exploring the largehidden markets. An average Indian spends about 40% of household expenditure on food items.Demand for processed /convenience food is constantly increasing. Cheaper workforce availabilitycan be effectively utilized to setup large low cost production bases for domestic and exportmarkets. Liberalized policies with specific incentives for high priority food processing sectorprovide very favourable environment for investments and exports in the sector.
-
7/31/2019 CAMIS Final
10/39
C A M I S P R I V A T E L I M I T E D Page 10
BUSINESS PLAN 2012
India is the leading producer of milk in the world, and produced about108 MT in 2007_ 37% of the produced milk is processed and 676 diary plants are registeredwith the government The major growing segment include- branded butter, cheese and icecream and the total market is valued at INR 20.3 bn (USD 442 mn) andexpected to grow at an average rate of ~13% Ultra Heated Treatment and flavored milk are other high growth market
Dairy
products
Growth
Rate 15%
Globally, India is second and third largest producer of vegetables (100MT) and fruits (50 MT) respectively_ India accounts for 8.4% of the worlds F&V production Less than 2% of total vegetables produced are processed commercially inIndia Share of organized sector in fruits processing is 48% and ~20% of
processed F&V are exported_ Mango and its other products alone constitute 50% of the total F&Vexports market.
Fruits &
VegetablesGrowth
Rate 20%
India has the largest livestock population (470 mn) globally About 5 mn tonnes of meat is produced per year in India Per head consumption of fresh and processed meat is as low as 1.5 kg in
India against world average of 35.5 kg Majority of animals in India are not bred for meat, the processingpercentage for meat is as follows:
-Buffaloes (11%), Cattle (6%), Sheep (33%), Goat (38%) The annual poultry production in India is 450 mn broilers and 33 bn eggs
growing at 20% and 16%
Meat &
PoultryGrowth
Rate 10%
-
7/31/2019 CAMIS Final
11/39
C A M I S P R I V A T E L I M I T E D Page 11
BUSINESS PLAN 2012
Packaged foods beverages and staples are restricted to urban areas characterized by highvolumes and low margins
India ranks third in fish production in the world Frozen shrimp contributes to 34.62% of exports in terms of volume and63.5% in value India has about 369 freezing units with daily processing capacity of
10,226 tonnes and 499 frozen storage units with a capacity of 134,767tonnes
Fisheries GrowthRate 20%
India has around 60,000 bakeries; 20,000 traditional food units The growing segments in packaged foods include_ Soups market is at a nascent stage and is valued at INR 644 mn (USD 14mn)_ Confectionaries market pegged at INR 22.3 bn (USD 484.3 mn) growingat 5.7%_ Biscuit market is estimated to be INR 17.2 bn (USD 373.4 mn) and isgrowing at 7.5%
_ Culinary products; tomato ketchups and jams at 18-20% annually
Packaged
foodsGrowth
Rate
India is the largest tea producer in the world accounting for 28% ofglobal production and 5th largest coffee producer accounting for 4% oftotal production in the world There are 100 plants across India under aerated soft drinks segment Exports in soft drinks are valued at INR 7.2 bn (USD 156 mn) perannum
Beverages GrowthRate 27%
India is the second largest wheat producer globally with an output of 70
MT valued atINR 9 bn (USD 195 mn)
There are 10,000 pulse mills with 14 MT milling capacity perannum
StaplesGrowth
Rate 85%
-
7/31/2019 CAMIS Final
12/39
C A M I S P R I V A T E L I M I T E D Page 12
BUSINESS PLAN 2012
KEY SUCCESS FACTORS AND RISK FACTORS IN THE FOOD PROCESSING INDUSTRY
SEGMENTS KEY SUCCESSFACTORS KEY RISKFACTORS
Fruits and
Vegetables
Ability to establish forward and
backward linkages through contract
farming, cold chains, and a strong
distribution network.
Use of modern technology in F&V
processing rather than manual methods
Using hybrid seeds to improve yields
Large number of innovative products
and branding.
About 35% of agricultural
produce is wasted due to poor
cold chain linkages during
storage and transportation.
International trade rules and
increasing protectionism in
export markets.
Poor performance of the
agricultural/primary sector.
Dairy Products
Ability to increasing scale of output
Wide product portfolio of high-value
products such as yoghurt, sweets
Ability to tap into export markets
Developing a portfolio of milk-based
products.
Low productivity in milk
animals despite the largest
bovine population (250
million)
Lack of scale in the industry
despite of success stories such
as AMUL.
Meat & Poultry Ensuring quality and sustained branding.Ability to tap into export growth in the
value-added segment.
Quality and hygiene is low in
street-side wet markets
imperfect slaughtering
High supply chain costs as
feed constitutes 60% of total
broiler costs
Relatively unregulated
slaughter facilities to the
extent of 50%. The country
has only 3,600 slaughter
houses, 9 modern abattoirs
and 171 meat processing
units, and a limited number of
pork-processing units
Primitive rearing techniques
-
7/31/2019 CAMIS Final
13/39
C A M I S P R I V A T E L I M I T E D Page 13
BUSINESS PLAN 2012
EMERGING BUSINESS MODELSBackward Integration
Everybody is well versed with the traditional methods of value chain in food processing.
Looking at the dominance of the sector towards the growth of economy it has been considered
priority sector amongst all. We can see the generic value chain of the food processing industrybelow.
Figure 16: Terminal Market
Contract Farming
Contract Farming is an agreement between the food processor (contractor), who is typically a
large organized player, and the farmer, whereby the farmer is contracted to plant the
contractors crop on his land. He also agrees to harvest and deliver to the contractor a quantum
of produce, based upon anticipated yield and contracted acreage at a pre-agreed price. The
food processor provides inputs in terms of technology and training to the farmer, to improve
the yield and quality of the produce.This results in a win-win situation that generates a steady source of income for the farmer and
eliminates supply shocks and assures good quality farm inputs which are crucial for the
processor. The Government of India has been actively encouraging contract farming
endeavors. The National Agricultural Policy envisages that private sector participation will be
encouraged through contract farming and land leasing arrangements to allow accelerated
technology transfer, capital inflow and assured market for crop production .
Terminal Markets
A Terminal market is a central site, often in a metropolitan area, that serves as an assembly and
trading place for agricultural commodities. Here there are different options for disposing off the
produce. It can either be sold to the end consumer, or to the processor, or packed for export, or
even stored for disposal at a future date. It thus offers different options to farmers under a
single roof. Typically, terminal markets operate on a hub and spoke model where the markets
form the hubs, and are linked to different collection centers (spokes) that are located close to
the production centers. The typical value chain structure for a terminal market, as well as the
key activities and corresponding infrastructure requirements at each level, are depicted in the
figure below:
-
7/31/2019 CAMIS Final
14/39
C A M I S P R I V A T E L I M I T E D Page 14
BUSINESS PLAN 2012
Figure
17: Terminal Market
The Government of India is looking to promote terminal markets, as a means of integrating
domestic produce with retail chains. There are plans to set up such markets in eight cities
across five states, at a cost of US$ 131 million. The cities being considered are Mumbai, Nasik,
Nagpur, Chandigarh, Rai, Patna, Bhopal and Kolkata.
Global Farming
The next step towards globalization comes from global farm lands. Food shortage and
reducing level of arable land is encouraging countries to approach other territory for farm land.
China government wants its agricultural firms to buy or lease farm lands in Africa or South
America to bolster food security in their country. China has 40% of farmers across the globe but
only 9% of agricultural land. More than 40% of arable land of Brazil is unused and china would
like to take up this land for soyabean production. Similarly Libya is negotiating with Ukraine for
growing wheat and Saudi Arabia is too looking for green pastures for their steady supply of food
& livestock supplies.
Food Parks
Food Parks are comprehensive industrial estates for food-processing units where the industries
would have the provision of common facilities like cold storage, cold chain, effluent treatment
plant, warehousing, power connection, water facilities, sewage etc.
The creation of these common infrastructures would benefit the individual units particularly the
small and medium scale units, because these are expensive to be set up by any single individualunit. Therefore a common park with all the infrastructures would help in the growth of this
industry.
The ministry of food processing industries has envisaged an initial investment of Rs 120 Crore
(Rs 1.2 billion) for setting up the common infrastructure in a park. It is of the view that by
providing a grant of Rs 1,500 Crore (Rs 15 billion) for 30 parks, Rs 50 Crore (Rs 500 million) for
-
7/31/2019 CAMIS Final
15/39
C A M I S P R I V A T E L I M I T E D Page 15
BUSINESS PLAN 2012
each, the private sector would be encouraged to invest up to Rs 9,000 Crore (Rs 90 billion) in
various parks across the country.
GROWTH DRIVERS FOR FOOD PROCESSING INDUSTRY
Changing Lifestyle
As far as the processed food market is concerned, Indian households are closely knit and the
percentage of nuclear families and working women is very low. Therefore, while the market
itself is one of the largest in the world, the penetration of packaged and branded products is
abysmally low. People prefer homemade or fresh products, which are cheaper than branded
products. However, over the last couple of years, private players have started taking enormous
interest in the sector, with many MNC's already testing the waters. Their efforts have beenaided by the fact that urban India is showing a marked shift towards ready-to-eat food:
With urban incomes increasing and urban consumers squeezed for time, they are slowly
demanding more of the products they consume. Also, the hygiene factor is facilitating growth.
With 200 million people expected to shift to processed and packaged food by 2010, this
presents an opportunity for makers of branded products like HLL, ITC, Nestle to convert
potential consumers into patrons on as big a scale as never before.
Large share of wallet:
Food forms the largest component of the total consumption expenditure in India accounting for
as much as 51%. This is highest compared to 9.7% for an average American person and 15% for
both Japanese and British. Though with rising income, the share would go down, but would
increase in absolute terms. Multi-national companies such as Coca- Cola, PepsiCo, Britannia,
Danone, Nestle, Cadbury, Heinz and Perfettiae have made their presence felt in India. Indian
majors like HUL, ITC, Dabur too have lined up investments in this segment.
Growth in Retail
Although organized retail is around 5 % of the total market, it is expected to be seen 35-40% in
next 10 years. The annual growth of the retail market in India is expected to be around 8 per
cent. Indian market has become the most lucrative market for retail investment in the world.
The great Indian consumer market is still going strong. Existing middle class with increasing
share of wallet, rapid urbanization, increase in the number of working women, large number ofworking young population, changing attitudes, tastes and lifestyle, globalization , indulgence
and convenience aspects are triggering the retail food industry which in turn will a great boost
to the food processing industry. This also attracts global retail giants like Wal-Mart, Tesco,
Carrefour SA, Metro AG etc. to enter the Indian markets. With increasing number of shelf space
more and more branded and processed food is finding its way in retail stores. Industry
estimates the total retail stock in India stands at 34.8 million sq ft. Another 62.6 million sq ft of
-
7/31/2019 CAMIS Final
16/39
C A M I S P R I V A T E L I M I T E D Page 16
BUSINESS PLAN 2012
mall space is either proposed or under various stages of construction in the next 2-3 years; only
35% of this supply is coming in Mumbai and Delhi.
It is expected that the share of the two cities to fall from the current 72% of the total stock to
49% by end of 2011. This will enable retailers to plan at increasing their penetration into the
Tier II and III markets, which have lower operating and rental costs, and are relatively untapped.
With a sizeable amount of supply in pipeline, the retailers and developers would shift the focusof Indian retail market from lifestyle goods to value retailing. FMCG and food retailing is likely
to be the least affected in this downturn and some activity is expected in this sector.
Food Retail:
Food retail has surpassed the dominating apparel and accessories sector. Contrary to the belief
that fashion is the largest segment of organized retail in India, food & beverages is the major
segment, worth Rs 8,97,000 crore. Growing at the rate of 30%, the Indian food retail is going to
be and no doubt is the major driving force for the retail industry. The percentage of income
spent in households will drive growth in the food market. Food accounts for the largest share of
consumer spending. Food and food products account for about 50% of the value of final private
consumption. This share is significantly higher compared to developed economies, where food
and food products account for about 20% of consumer spending.
Currently, the retail food sector is Rs.3500 billion and is expected to rise to Rs. 7500 billion by
2025. Food has the largest consumption in the Indian economy and will remain the single
largest category.
Government Initiatives
The government has taken steps to provide financial assistance for setting up and modernizing
food processing units, creation of infrastructure, and support for R&D and human resource
development in addition to other promotional measures to encourage the growth of the
processed food sector. The government has set a vision 2015, for the sector which includes: Promoting a dynamic food processing industry
Enhancing competitiveness in domestic and international market
Making sector attractive for both domestic and foreign market
Achieving integration of food processing infrastructure from farm to market It also has
following specific targets:
Level of processing of perishables from 6% to 20%
Value addition from 20% to 35%
Share in global food trade from 1.5% to 3% by 2015 In order to achieve the vision, the
government has taken following steps:
Priority area: The Government of India has identified the food processing sector as a highpriority area and has given a number of fiscal relief and incentives to encourage
commercialization and value addition to agricultural produce.
FDI: Automatic investment approval up to 100% foreign equity has been allowed for larger part
of the food-processing sector except for malted food, alcoholic beverages and those reserved
for small-scale industries (SSI). 24% foreign equity has been permitted in small-scale sector.
Foreign investments are allowed in SSI reserved items under an export obligation in selected
items.
-
7/31/2019 CAMIS Final
17/39
C A M I S P R I V A T E L I M I T E D Page 17
BUSINESS PLAN 2012
Licenses: The Indian government has abolished licensing for almost all food and agro-
processing industries except for some items like alcohol, cane sugar, hydrogenated animal fats
and oils and items reserved for the exclusive manufacture in the small scale industry (SSI)
sector. This has resulted in a boom in the FMCG market through market expansion and greater
product opportunities.
Taxes: To further aid the segment, the government has announced a liberal corporate tax policyfor export and domestic earnings. Income tax rebate has been allowed (100% of profits for five
years and 25% of profits for the next five years) for setting up of new agro-processing industries
to process and package fruits and vegetables (F&V). Export earnings are exempted from
corporate tax. Various states governments like Himachal Pradesh, Uttaranchal and Jammu &
Kashmir have encouraged companies to set up manufacturing facilities in their regions through
a package of fiscal incentives. The move towards uniform VAT has also been considered.
Excise and custom duties: Quantity restrictions on all food products have been removed. Peak
rate of customs duty has been reduced from 30% to 25% (excluding agricultural and dairy
products) and duty structure on designated items has been rationalized. The import of food
processing machinery is allowed freely with low levels of duties. Import of capital goods for
exports of agricultural products and their value added variants under the Export Promotion
Capital Goods (EPCG) is allowed duty-free and Foreign Technology Agreement within norms has
been made automatic. This opens up huge opportunities for large investments in food and food
processing industries in different fields including up gradation of technologies, improvement of
skills with installation of modern machinery and equipment, especially in areas of canning, dairy
plants, specialty processing.
Food laws: Consumer protection against adulterated food has been brought to the fore by the
Prevention of Food Adulteration Act (PFA), 1954, which applies to domestic and imported food
commodities and encompasses food colour and preservatives, pesticide residues, packaging,
labeling and regulation of sales.Food parks: In a bid to boost the food sector, the Government is planning to set up agri zones
and mega food parks. 30 such mega parks are coming up across the country in various cities to
attract Foreign Direct Investment (FDI) in the food processing sector. Each food park will have a
cold storage facility, apart from facilities for sorting, grading, food processing, packaging and
quality control and R&D laboratories, among other things. The government has already
identified five locations in Maharashtra, Andhra Pradesh, Punjab and Jharkhand and one in the
North- East region. It is also planning to set up 30 food parks across the country.
MAJOR INVESTMENTS IN FOOD PROCESSING INDUSTRY
Private investment has been one of the key drivers for growth of the Indian food industry. As
we know food processing industry has been allowed 100 % FDI it has shown substantial growth
which can be observed in the chart:
Industry estimates the total amount of investments in the food processing sector in the pipeline
for the next three years is about Rs. 1,150 billion. The government has received around 40
expressions of interest (EoI) for the setting up of 10 mega food parks (MFPs) with an
-
7/31/2019 CAMIS Final
18/39
C A M I S P R I V A T E L I M I T E D Page 18
BUSINESS PLAN 2012
investment of US$ 514.37 million. In August 2008, the first chocolate academy in India was
opened by Swiss confectioner Barry Callebaut, making its fifth foray into the Asia market. South
Korean confectionery giant, Lotte Group, also has plans to set up a subsidiary in India. Belgian
brewing giant, InBev, has announced increased expansion in India, with a focus on the beer
market. Through its recent acquisition of US brewing giant Anheuser-Busch (A-B), the company
now also owns A-B's Indian subsidiary, Crown Beers India. Italian confectionery company,Ferrero SpA, has announced plans to invest US$ 35 million for setting up a mint manufacturing
plant in Maharashtra. Conglomerate Reliance Industries Ltd has invested US$ 1.25 billion in a
dairy project. In August 2008, Reliance Industries was reported to be mulling a partnership with
UK-based supply chain solutions provider, Wincanton, for its efforts focused on Indias mass
grocery retail (MGR) sector.
Dairy major and ice cream specialist, Amul Dairy, has announced plans to enter India's US$ 500
million snack food market. Texas Chicken, the chicken fast-food brand of the US-based Church's
Chicken, has already opened its first outlet in Hyderabad and plans to open at least 300 outlets
in India over the next 10 years. The world's third largest pizza chain, Papa John's, plans to open
100 outlets in different parts of the country with an investment of US$ 51 million. Fast-food
chain McDonalds is pumping in US$ 83.4 million on increasing its footprint in India. ITC is
planning to set up a world-class processing infrastructure in Rajasthan for an integrated
'cleaning-cum-sorting' facility for spices like cumin, coriander and pepper. Moreover, ITC is also
planning investments to automate the different operations in its supply chain. It is planning to
set up a pepper garbling and steam-washing facility in Kerala, apart from a 'blended spices'
facility over the next two years. Sapat International, a Mumbai-based tea company, is
reportedly in talks with EPIC, a private equity firm in the UK, for the acquisition of its stake in
Whittard, an upmarket tea and coffee retailer in the UK. France-based Belvedere Group, which
is the worlds second-largest vodka producer, is planning to enter India via the travel retail
channel.
-
7/31/2019 CAMIS Final
19/39
C A M I S P R I V A T E L I M I T E D Page 19
BUSINESS PLAN 2012
EMERGING TRENDS IN THE FOOD PROCESSING SECTOR
Emerging trends in the food processing sector
The food processing sector is highly fragmented industry, it widely comprises of the followingsub-segments: fruits and vegetables, milk and milk products, beer and alcoholic beverages,
meat and poultry, marine products, grain processing, packaged or convenience food and
packaged drinks. A huge number of entrepreneurs in this industry are small in terms of their
production and operations, and are largely concentrated in the unorganized segment. This
segment accounts for more than 70% of the output in terms of volume and 50% in terms of
value. Though the organized sector seems comparatively small, it is growing at a much faster
pace.
-
7/31/2019 CAMIS Final
20/39
C A M I S P R I V A T E L I M I T E D Page 20
BUSINESS PLAN 2012
Figure 19: Food processing share in manufacturing
SWOT ANALYSIS OF FOOD PROCESSING INDUSTRY
Strengths Abundant availability of raw material Priority sector status for agro-processing given by the central Government Vast network of manufacturing facilities all over the country Vast domestic market
Weaknesses
Low availability of adequate infrastructural facilities Lack of adequate quality control and testing methods as per international standards Inefficient supply chain due to a large number of intermediaries High requirement of working capital. Inadequately developed linkages between R&D labs and industry. Seasonality of raw material
Opportunities
Large crop and material base offering a vast potential for agro processing activities Setting of SEZ/AEZ and food parks for providing added incentive to develop greenfield
projects
Rising income levels and changing consumption patterns Favorable demographic profile and changing lifestyles Integration of development in contemporary technologies such as electronics, material
science, bio-technology etc. offer vast scope for rapid improvement and progress
Opening of global marketsThreats
Affordability and cultural preferences of fresh food High inventory carrying cost High taxation High packaging cost
-
7/31/2019 CAMIS Final
21/39
C A M I S P R I V A T E L I M I T E D Page 21
BUSINESS PLAN 2012
BUSINESS IDEA
CAMIS will create the following physical infrastructure to facilitate the farmers to semiprocess their products, these activities will be grading, sorting and storage.
Infrastructure facilities consist of:
Processing and grading facilities for farm produce Warehousing for fresh farm produce and semi processed farm products Cold storage for fresh farm produce Highly technologically equipped ecommerce system that enables the farmers to
connect to the market place
CAMIS scope of work is to carry out the back end work like sorting, grading,storing etc. but not selling the products directly
-
7/31/2019 CAMIS Final
22/39
C A M I S P R I V A T E L I M I T E D Page 22
BUSINESS PLAN 2012
SALES REVENUE STRUCTURE
REVENUE MODEL
Rent for storage from the farmers and the clients Processing fees (as per the rates fixed) Commission from other activities such as transportation, loading & unloading, Loan
assistance, irrigation facilities, etc.
Membership fees from the farmers for maintaining their database.
Farmers
CAMIS would source information about agricultural products and post them on itswebsite.
The company would also provide storage facility and would charge them accordingly
Sorting
Grading the farm produce at the time of delivery
Sending the materials to be processed further
Storage
Storing products in their respective sections
Processing
Assessing the orders from the clients and processing the produce
Dispatching the materials to the clients and distributors
Packaging
Packaging the Vegetable and other produce to increase their life and maintain quality
To Clients(Wholesellers,
Retailers &Processors
Continuous communication for feedback and improvements
Special teams to suggest improvements to the client
-
7/31/2019 CAMIS Final
23/39
C A M I S P R I V A T E L I M I T E D Page 23
BUSINESS PLAN 2012
HUMAN RESOURCE PLANNING
Recruiters
Temporary contracted employees
Outsourcing
At first, our company will have enough individuals to launch the business. However it will
become imperative over time to increase our employment force to accommodate the needs of
the growing organization. CAMIS can look towards recruiters who will be able to provide us
with talented and experienced employees. It is also possible to hire temporary contracted
employees on a need-based basis. Eventually, when CAMIS has grown and become more
financially powerful, we may be able to outsource our technical & account handling jobs
overseas to places like China or US. We look to keep costs as low as possible and receive a
higher return.
The intake of raw material is a relatively semi-skilled process, so therefore it will not be
necessary to heavily train our employees, thereby keeping costs low. In the management
positions, however, where expertise is the key to the success of the business, we will not
hesitate to fully train our staff to most effectively manage the organization. This training will be
funded by the excess cash we plan to keep on hand in case of an emergency. Fortunately, our
core top management team will be comprised of three of the most successful, respected
individuals in the industry. Our CFO, will control financial projections and works closely withother top management to develop and maintain a long term strategy for the organization. The
CEO is the general overseer of the company who will delegate tasks as necessary. The CEO will
also constantly analyze the firms situation in the industry plus the firms past experiences in
order to attain a full perspective of where our firm stands. She/he is also a key player in the
firms business strategy development and sets objectives crucial to success. With years of
combined experience between our three top executives, we are confident that our company is
inevitably bound for success.
CAMIS would recruit mostly the female employees from the rural areas from which it sources
the agricultural produce. In order to the provide education about the right crop and create astrategic vendorship with the farmers for long term supply of the produce. Also a total number
of food quality experts will be employed to ensure the quality of the produce and to do the
grading process.
-
7/31/2019 CAMIS Final
24/39
C A M I S P R I V A T E L I M I T E D Page 24
BUSINESS PLAN 2012
SALARY STRUCTURE:
ORGANIZATION STRUCTURE
Position Number Salary per head Yearly
CEO 1 90000 1,080,000
CFO 1 75000 900,000
Manager 20 34000 8,160,000
Quality Experts 100 22000 26,400,000
Salesman 30 15000 5,400,000
Junior level employees 100 8000 9,600,000
Labour 400 5000 24,000,000
Administration 60 6000 4,320,000
Peon & Watchmen 30 4000 1,440,000
Total 742 81,300,000
CEO
QUALITY EXPERTS
ADMINISTRATION
SALESMAN
PEON &WATCHMAN
JUNIOR LEVELEMPLOYEES
LABOUR
CFO
MANAGER
-
7/31/2019 CAMIS Final
25/39
C A M I S P R I V A T E L I M I T E D Page 25
BUSINESS PLAN 2012
BUSINESS STRATEGY
The Business Strategy consists of a list of specific objectives followed by detailed plans of how
to achieve these objectives. CAMIS have four main objectives:
Cover a large market share within 3 years.
Increase net income by at least 15% each year
Expand our brand name and become recognized
Our first objective is to increase market share. The market currently calls a large amount of
processed foods which are ready to be used for further production, so catering to a large chunk
of needs would fetch us a high market share. Attaining 100% of the market share would be our
first goal for the first year. By the second year, we hope to have a proper system in place thatwould enable us to maintain at least 95% of the market share.
Our second objective is to increase our net income, otherwise known as profit after tax. Our
sales revenue for the first year will be Rs. 60 Lakhs Approx. and we hope to increase this
amount by at least (15%) in the first year. As years go on, we plan on our revenue increasing in
larger and larger increments. By our second year, we hope this value has increased by at least
Rs.10 Lakhs. Similarly, for our net income, we hope it will also continue to expand. Right now,
we stand at the initial stage and have a negative cash flow.. By the third year, this amount
should rise to approximately Rs. 15 lakhs. By the fifth year, the net income should be 20 lakhs.
By the eighth year, we should be bringing in a whopping 40 lakhs.Our last objective is for our company to successfully establish a brand name. To do so,
we will be distributing much of our funds to advertising and public relations, as needed. More
money will also be spent on brand recognition as well as quality so that our services or value
additions are known as best in the industry.
Key Strategy for Using Capabilities and Resources
1. Seasonal Produce: medium price, medium volume strategy
2. Regular produce: low price, high volume strategy
3. High Awareness
a. High Advertising
b. Medium-Low Public Relations
c. Medium Brand Name Awareness
d. Medium Quality
-
7/31/2019 CAMIS Final
26/39
C A M I S P R I V A T E L I M I T E D Page 26
BUSINESS PLAN 2012
Based on our goals and objectives, CAMIS plans on using a medium volume, medium
price strategy for the seasonal produce. This strategy entails raising price 1%-15% every year for
the seasonal produce until the launch of a new items being produced. Currently, our value
addition process costs approximately Rs. 11. For the first year, were taking a daring step and
raising it to 15 for 2012. Scenario Reports say that customers have medium sensitivity to price
changes in seasonal produce so a change of Rs. 4 should not decrease revenue by too much.With a higher price, people will need better reasons to continue using the service.
As a part of our new strategy to gain more and lose less, we plan to increase spending in
Magazine Advertising and Television by about Rs 100,000. Every year, we will increase the total
amount spent on advertising by small increments as our price increases. These increments will
range from Rs.10,000 to Rs.50,000. To counter our extreme increases in Advertising, we will
decrease the amount of money we invest in Public Relations since the Scenario Reports tell us
that Seasonal produce requires High Advertising, but Low PR. Our production volume for the
first year will remain at 277,000 kgs. Production volume will change depending on the price set
for the product as well as customer reaction in previous year to varying changes in price,
advertising, capacity, quality, etc.
When we reach the regular market, we will adopt a lower price, higher volume strategy based
on the market for regular produce. Our reason for servicing the regular produce market is that
regular and seasonal produce requires many of the same resources. For example, both need
high Advertising and low Public Relations. Both also require more television and magazine
advertising as opposed to newspaper. It is also easier to focus on regular and seasonal markets
since the distribution of produce to the clients will be done using a common transportation
system. In order to have enough cash and capacity to introduce a new produce, we will most
likely cut back on the amount of spending and production volume of seasonal produce.
However, to counter the loss in profit due to fewer items processed, we will most likelyincrease the price of processing seasonal produce by small increments of 1% per year.
CAMIS will be providing a database of all the items on its website (www.camis.com). This
website will give all the information to the clients regarding the agricultural produce available
with CAMIS and the farmers associated with CAMIS. The data will be fed in by executives who
will be from the company for the first 3 months. These executives will be recruited mostly from
the semi urban areas and shift to a new rural area after every 3 months. Along with this he will
also train a person from the rural area to feed in the data after 3 months. It is evident that in 3
months a minimum 10th
passed rural person will be able to work on a user friendly system. This
will be a strategy of CAMIS in order to involve the rural people and make them a part of the
system.
For the first year of our food processing system, we also plan on processing a small to medium
amount of the items to test the market and see how well it is accepted. Advertising
expenditures will rise, but Public Relations spending will be kept low. If the launch of our new
process is successful, we will gradually increase capacity to process more of regular produce
and reach our goal of having a low price but high volume for the produce.
http://www.camis.com/http://www.camis.com/http://www.camis.com/http://www.camis.com/ -
7/31/2019 CAMIS Final
27/39
C A M I S P R I V A T E L I M I T E D Page 27
BUSINESS PLAN 2012
We will also use high advertising to increase service and brand awareness. This increase in
awareness can in turn help increase profit and revenue. Another tactic our firm plans to utilize
is a gradual increase in quality. Every year, we will allot money to increase the quality of our
produce, which also goes to help increase our brand name awareness, and thus our general
service awareness.
According to the information from our SWOT Analysis, it seems our strengths outweigh our
weaknesses. The dedication and talent of our team will pull through in the long run. Although
we may spend more time and money developing the product, our high quality earns us a better
name with the customers. We are trying to become a recognized company after all. In addition,
even if our team is met by time constraints, it is possible to still work together efficiently. The
team communicates frequently through the internet and via phone so that information is
transferred and work is done. Because of our devotion, this strength creates many new
opportunities for us in the future. It opens doors to innovation and creation and focuses us on
what is important.
Our weakness could also become a potential strength because working apart; we can get
separate jobs accomplished instead of working together on one problem for a long period of
time. We focus on efficiency and quality, which is why we believe our strategy will be the
strongest in the long run.
Our strategy hopes to take advantage of our opportunities which include advocating health
care, creating innovative and new services, and introducing new ways to improve quality. When
we advocate healthcare, more people will be motivated to use best of the best agricultural
products. The launch of our process of regular produce would be a new and innovative product
for the future which we hope will be successful. CAMIS also plan to introduce new technology
and hire technicians in order to increase the quality and safety of our process.
The ultimate goal of our business strategy is to capitalize on our strengths, convert our
weaknesses into strengths, exploit potential opportunities, and defer harmful threats. By doing
this CAMIS will become one of the strongest firms in the industry.
CAMIS will also be providing the following services:
Providing warehouse facilities for farmers as well as the clients Loans facilities for the farmers by tying up with banks Equipment assistance for the farmers Assistance for the development of Irrigation facilities Single window to all companies huge customer base SMS Alerts Weather, Market rates & Right grains Database of farmers in relation to crop
-
7/31/2019 CAMIS Final
28/39
C A M I S P R I V A T E L I M I T E D Page 28
BUSINESS PLAN 2012
MARKETING PLAN
KEY MARKETS & SEGMENTATIONAll the seven items will be marketed through the CAMIS website. Since we are not involved in sales but
in only supplying the agricultural produce to the clients CAMIS will make sure that it provides the best
service possible to its clients. CAMIS will develop a mechanism wherein the shortage of items for the
client to a minimum transportation level will automatically be delivered to the client.
The list of potential CAMIS clients are given below:
Retail Giants (Reliance fresh, Future group, etc) Hotels & Restaurants Food chains FMCG companies Export companies Wholesalers
MARKETING OBJECTIVES FOR THE FIRST YEAR
Create brand awareness about CAMIS and its items at the PAN India level, by offering betterservices and through advertising
Supply 500 tons approx. of agricultural produce to the clients which will include all the sevenitems and any extra items if included.
-
7/31/2019 CAMIS Final
29/39
C A M I S P R I V A T E L I M I T E D Page 29
BUSINESS PLAN 2012
OBJECTIVE, STRATEGY & ACTION PLAN
STRATEGY
1. Build the CAMIS brand using the 360 degree Integrated Marketing Approach:Distribution: Transportation of goods to the right client at the right time will be out prime focus
Trade Focus: During the initial stage a lot of discounts will be offered to the customer in order
to engage the client. Also branding will also be done through word of mouth.
Awareness: Since CAMIS is being targeting both the individual and the business buyers it will
indulge in the BTL, ATL & TTL activities.
Visibility: Hoardings, Banners and a lot of outdoor activities will also done to increase the
visibility
Create brand awareness about CAMIS and its items atthe PAN India level, by offering better services andthrough advertising
Supply 500 tons approx. of agricultural produce to theclients which will include all the seven items and anyextra items if included.
Objective
Build the CAMIS brand using the 360 degree IntegratedMarketing Approach
Target the major clients in the FP industry to deal inlarge volumes
Strategy
Create awareness and Communicate positioningthrough ATL,BTL and TTL activities
Stress more on the quality of the services and timelydelivery.
Offer incentive if needed but only for a short term
Actionplan
-
7/31/2019 CAMIS Final
30/39
C A M I S P R I V A T E L I M I T E D Page 30
BUSINESS PLAN 2012
Trial Incentives: Competitive introductory consumers prices without compromising with brand
image and positioning.
Sampling: Regular sampling activities at on demand selling will be directly delivered to
consumers is key.
Repurchase and Loyalty: Free gifts, building good consumer understanding and their
preferential taste for the CAMIS brand also discounts for getting additional customers on board.
For promotions and better visibility CAMIS will do the following things:
Distinctive logo: CAMIS will use it on all your marketing materials that will serve as a graphic
symbol of our brand. We will be creating an expensive logo because this is one of the most
important symbols of our business as a whole.
Company website: CAMIS will have its own website (www.camis.com) which will also promote
the brand. We will be directly linking it the major search engines such as Google, yahoo, etc.
This will attract our potential customers to our websites. Going online is a good strategy of
going digital which forms an important part of 360 degree marketing approach.
Public relations: Is the most cost-effective b-to-b marketing tool for reaching large audiences.
CAMIS will conduct press release activities on a large scale in order to create awareness about
the service offered.
Direct mail: CAMIS will be sending direct mails to the potential customers because standardenvelopes often get trashed, but simple postcards will typically get scanned by the recipient,
and "lumpy mail" (packages with some souvenir object in them) will usually get opened. One of
the best uses of direct mail is to generate interest among potential customers in visiting our
website, where visitors will be answering a simple question and the click on the answer will be
directly linked to the CAMIS website to know their interests.
LOCAL MARKETING APPROACH
Newspaper advertising: CAMIS will give newspaper ads which can be effective in building name
awareness and generating some inquiries from prospects. Since as the per the study giving one
ad will be worthless so CAMIS will issue a series of 4 to 12, which will build interest and desire
on the part of potential customers.
B-to-B networking - In India the Federation of Indian the Chamber of Commerce has a wide
variety of events year-round that will let us meet and talk with hundreds of people, some of
-
7/31/2019 CAMIS Final
31/39
C A M I S P R I V A T E L I M I T E D Page 31
BUSINESS PLAN 2012
whom are potential customers and some of whom may serve as referral sources. Also a mix of
professional organizations provides additional opportunities to get to know lots of people and
pass out plenty of business cards.
Radio and TV: CAMIS will advertise through radio and TV that will create awareness among the
local public. Majority of our advertising will be through the cable and DTH which will let usselect a cluster of channels that are more likely to be viewed by majority of people than some
others.
NATIONAL MARKETING APPROACH
For national marketing approach CAMIS will focus on the following two mediums:
Trade magazines Trade shows2. Target the major clients in the Food Processing industry to deal in large volumes:
CAMIS will mostly focus on the large players in the food processing industry such as the Future
Group, Walmart, Tesco, Aditya Birla Group, etc. In order to increase the trade and reduce the
gestation period we have to deal in large volumes. For this we have to be consistent with our
quality of the supply and the services offered. For this we will concentrate on the economies of
scale in order to obtain cost leadership also a differentiation strategy of distribution which we
strive to achieve with the help of a better distribution system.
-
7/31/2019 CAMIS Final
32/39
C A M I S P R I V A T E L I M I T E D Page 32
BUSINESS PLAN 2012
SALES PLAN
Items Tonnes Volume
(in kilos)
value
/kg
In Value Proces
sing
Grad
ing
Packa
ging
Tot
al
cost
Total
Proces
singcost/ki
lo
Total
revenue
Maize 66800
66,800,0
00
8
534,400,
000
10% 8% 10% 28
% 2.24 149,632,
000
Groundn
ut
66800
66,800,0
00
30
2,004,00
0,000
10% 8% 10% 28
% 8.40 561,120,
000
Seasame
Seed
66800
66,800,0
00
43
2,872,40
0,000
15% 11% 18% 44
% 18.92 1,263,85
6,000Jowar 66800
66,800,0
00
10
668,000,
000
10% 8% 10% 28
% 2.80 187,040,
000
Bajra 66800
66,800,0
00
12
801,600,
000
10% 8% 10% 28
% 3.36 224,448,
000
Soyabea
n seeds
80160
80,160,0
00
15
1,202,40
0,000
10% 8% 10% 28
% 4.20 336,672,
000
Millets 80160
80,160,0
00
10
801,600,
000
10% 8% 10% 28
% 2.80 224,448,
000
Total
Yearly
494320
494,320,
000
8,884,40
0,000
42.72
2,947,21
6,000
Monthly 41193.3
3333 41,193,3
33.33
Daily 1373.11
1111 1,373,11
1.11
Salesman will carry out marketing and merchandising functions as and when needed,they will also be responsible for gathering market intelligence on regular basis.
They will also be responsible for collection & will work on salary + incentive system.
-
7/31/2019 CAMIS Final
33/39
C A M I S P R I V A T E L I M I T E D Page 33
BUSINESS PLAN 2012
Salesman will be trained on brands related marketing issues, merchandising techniquesand will be equipped with POSM, trade leaflets and brochures.
Salesman will send their daily sales report to the marketing and sales responsible andwill report directly to him.
Sales managers will procure sales order from the customers, email the same to themarketing and sales responsible, who will further forward the delivery instructions to
the logistic company, obtain the delivery date and revert back to the sales manager,
who will intimate the customer about his goods receiving date.
STRATEGIES:
1. Exceed the quota. Send no less than 50 letters of introduction to new prospects each week.
Make no less than 50 cold calls of introduction to new prospects each week.
Make no less than 20 face-to-face contacts with new prospects each week.
Create no less than 10 proposals each week.
Make no less than five presentations each week.
2. Obtain referrals from all my new customers.Within 30 days of delivering the product, the salesman will ask each of new customers for at
least three names and phone numbers of someone they personally know who may have a use
for our products.
3. Sales lead generation using relationship marketingThe entire salesmans will develop longer-term relationships with customers rather than
individual transactions.
4. Sale lead generation using search engine optimization and Internet marketing strategiesSalesman will also make use of digital marketing tool to create sales lead generation program
that includes search engine optimization (SEO)/Internet marketing strategies that will attract
prospects at the beginning of their buying cycle.
-
7/31/2019 CAMIS Final
34/39
C A M I S P R I V A T E L I M I T E D Page 34
BUSINESS PLAN 2012
SALES FORCE
Profile of the Salesman:
Must be fluent in English and good in communication and flair for sales. Good working knowledge of MS office, university graduate with at least 4 years of sales
experience in agricultural products.
Sales Managers will be entitled to monthly and yearly sales incentives.Deliverables for Sales Manager:
Must meet the monthly individual product target as well as the total monthly group product
target and yearly target.
Deliverables for marketing and sales responsible:
Minimum business of 1 cr/month/salesman Training the sales managers Business Developments Preparing future growth strategies
AGRO PROCESSING RELIEF MEASURES:
As per the latest announcements from the Ministry of Food Processing in India full exemption
from excise duty is being extended to,
1. The preservation, storage, transports or processing of agricultural, horticultural, dairy,poultry, apiaries, aquatic and marine produce.
2. Conveyor belt systems for use in cold storage for the preservation, storage, transport orprocessing of agricultural, horticultural, dairy, poultry, apiary, aquatic and marine
produce and in mandis & warehouses for storage of food grains and sugar.
3. Also,Income tax relief:
Income Tax rebate is allowed, 100% of profits for 5 years and 25% of profits for the next5 years, for new industries to process, preserve and package fruits and vegetables.
-
7/31/2019 CAMIS Final
35/39
C A M I S P R I V A T E L I M I T E D Page 35
BUSINESS PLAN 2012
FINANCIALS
PROFIT & LOSS ACCOUNT
Sales Revenue
At an approximate CAMIS will be sourcing around 7 kinds of agricultural produce from the 400
farmers of 20 villages (200 farmers per village). All the agricultural produce will be processed,graded, and packed as per the specifications of the customer. The estimated figures are as
follows. For further details refer to the excel sheet.
Total produce of farmers yearly 494320 (Tonnes)
Average processing cost Rs. 6.10
Total estimated revenue yearly 2,947,216,000
Financials
Sales Revenue 98,24,05,333 3,38,92,98,400 3,89,76,93,160
Other Income 1,89,00,00,000 2,49,48,00,000 2,74,42,80,000
Excise Duty - - -
Net Sales 2,87,24,05,333 5,88,40,98,400 6,64,19,73,160
Power & Fuel Cost -2,59,96,069 -5,01,92,138 -32,62,48,894
Other Processing Expenses -2,35,77,728 -5,18,71,002 -5,70,58,102
Marketing -14,14,66,368 -15,56,13,005 -17,11,74,305
Admin -9,43,10,912 -10,37,42,003 -11,41,16,204
selling -9,43,10,912 -10,37,42,003 -11,41,16,204
Miscellaneous Expenses -2,35,77,728 -2,59,35,501 -2,85,29,051
Employee Cost -8,13,00,000 -8,94,30,000 -9,83,73,000
Total Cost -48,45,39,717 -58,05,25,651 -90,96,15,759
Operating Profit 49,78,65,617 2,80,87,72,749 2,98,80,77,401
PBDIT 2,38,78,65,617 5,30,35,72,749 5,73,23,57,401
Interest -1,25,19,33,964 -2,69,56,66,347 -
PBDT 1,13,59,31,653 2,60,79,06,402 5,73,23,57,401
Depreciation -13,57,20,000 -13,57,20,000 -13,57,20,000
Profit Before Tax 1,00,02,11,653 2,47,21,86,402 5,86,80,77,401
Tax - - -
Reported Net Profit 1,00,02,11,653 2,47,21,86,402 5,86,80,77,401
2012 20142013
-
7/31/2019 CAMIS Final
36/39
C A M I S P R I V A T E L I M I T E D Page 36
BUSINESS PLAN 2012
It will take around 6 months to get the setup ready and start production. Also a 2 month credit
is also allowed for the customers. Hence the the cash inflow starts from the month of
September.
Other Income
Since CAMIS will also be providing warehousing facilities to the farmers and the clients. It has
procured a land of 630000 sq.ft in the semi urban area costing of Rs.600/sq.ft. Assuming that
at any particular time the warehouse will be occupied to the tune of 40% of the capacity. CAMIS
will charge Rs. 750/sq.ft from its customers. The warehouse will take approximately 2 months
to be operational.
Power & Fuel Cost
Power & fuel cost is assumed at 10% of the total operating cost.
Other Processing Expenses
Processing expenses are assumed to be at 2% of the monthly sales revenue
Marketing
Marketing costs are assumed to be at 6% of the average yearly sales revenue
Admin
Admin costs are assumed to be at 4% of the monthly sales revenue
Selling
Selling costs are assumed to be at 4% of the monthly sales revenue
Miscellaneous Expenses
Miscellaneous expenses to be at 1% of the monthly sales revenue
Employee Cost
Employees are paid as fixed monthly salaries and laborers are given their fixed amount of
wages. (Calculations are given in the excel sheet)
Interest
Interest will be paid after 2 months when the cash inflow from the warehousing facility begins.
-
7/31/2019 CAMIS Final
37/39
C A M I S P R I V A T E L I M I T E D Page 37
BUSINESS PLAN 2012
Depreciation
Depreciation is charged at 10% of the total assets except land.
BALANCE SHEET
ASSETS
LAND:
Land will be purchased in the rural areas for the setup of the plant & machinery. 45 bigha land
will be acquired at the cost of 12 lakh per bigha.
WAREHOUSE:
A total of 14 bays will be setup of an area of 45000 sq.ft per bay. The total cost is estimated at
around Rs.37.80 crores and 10% as the development cost.
Sources of funds: Amount in Rs.
Bank Loan 1,18,22,65,186
Equity 50,66,85,080
TOTAL LIABILITIES 1,68,89,50,266
Application of funds:
Land 5,40,00,000
Plant & Development 1,29,60,00,000
Warehousing 12,60,00,000
Machinery
Processing 2,46,00,000
Grading 1,14,00,000
Packaging 1,65,00,000
Other Equipments 2,00,000
Office 6,00,00,000
Furniture & Fixtures 4,00,000
Cash at bank 9,58,56,255
Cash in hand 39,94,011
TOTAL ASSETS 1,68,89,50,266
Balance Sheet
-
7/31/2019 CAMIS Final
38/39
C A M I S P R I V A T E L I M I T E D Page 38
BUSINESS PLAN 2012
PLANT & DEVELOPMENT:
The cost of construction of the plant and its development per sq. ft is taken from the internet as
$40/sq.ft with clean room facilities. So the total cost of construction and development comes to
Rs.129 crore (approx.)
MACHINERY:
All the machines will be purchased from the respective vendors on cash basis. In total we will
be having 9 machines for the processing, grading and packaging services. The total cost of
machinery is estimated at around Rs.5.25 crores.
OFFICE & FURNITURE & FIXTURES
Office will be purchased at the cost of 6 crores in an urban area and furniture & fixtures worth
Rs. 4 lakhs.
LIABILITIES
Liabilities include the cost of all the assets and the working capital for the first two months and
10% of the working capital as contingency. The liability is divided into bank loan & equity at 70%
and 30% respectively. The loan will be taken from a bank @ of 16% per annum and the equity
will be sourced from 4 to 5 investors through private placements.
CASH FLOW
Amount in Rs.
2012 2013 2014
Net Profit Before Tax
1,000,211,653 2,472,186,402 5,868,077,401
Net Cash From Operating Activities
497,865,617 2,808,772,749 2,988,077,401
Net Cash (used in)/from (484,539,717) (580,525,651) (909,615,759)
Closing Cash & Cash Equivalents
13,325,900 2,228,247,098 2,078,461,641
-
7/31/2019 CAMIS Final
39/39
BUSINESS PLAN 2012
REFERENCES
The web references and reports would be useful in the course of the project
Websites: www.justdial.com,www.parinda.com,www.companiesinmumbai.com,
www.economywatch.com.
Websites of Ministry of India:
Ministry of food processing (mofpi.nic.in) & Ministry of construction (www.moch.gov.iq)
Reports:
KT & G Business plan Report on Indian food processing industry Report on financial draft
http://www.parinda.com/http://www.parinda.com/http://www.parinda.com/http://www.companiesinmumbai.com/http://www.companiesinmumbai.com/http://www.companiesinmumbai.com/http://www.economywatch.com/http://www.economywatch.com/http://www.moch.gov.iq/http://www.moch.gov.iq/http://www.moch.gov.iq/http://www.moch.gov.iq/http://www.economywatch.com/http://www.companiesinmumbai.com/http://www.parinda.com/