Nutritious biscuit : Ragi Biscuits
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The document provides a business plan for a company that produces Ragi biscuits. Some key points: 1) The company was founded in 2017 by alumni from an institute to produce millet biscuits. Ragi biscuits are particularly popular due to their high nutrition and benefits for children and diabetics. 2) Ragi biscuits are gluten-free and high in fiber, making them suitable for diabetes and weight control. They are priced at Rs. 15 for a pack of 12 and Rs. 5 for a pack of 4. 3) The plan is to expand distribution from Karnataka throughout India and position the company as a leading biscuit maker, focusing on health benefits.
Nutritious biscuit : Ragi Biscuits
- 1. BUSINESS PLAN NUTRITIOUS BISCUIT: RAGI BISCUITS Submitted by: Group 5 Section 2 Md Salman Anjum Pooja Mathan Navaneeth
- 2. Eat well Foods Private Ltd About the Organisation: The Business was founded by four Alumnus of Indian Institute of Plantation Management, in the year 2017. The company has developed many biscuit varieties made of millets which are nutritious and healthy. Among the available varieties of millet biscuits Ragi is found to be more familiar due to its high nutritious value and health benefit which are highly advisable for feeding children and diabetic patients. The business is licensed and Supplies its products to major retail outlets in Karnataka. The Short term goal of the company is to penetrate in all possible and potential markets in the state and also operates with a long term vision of expanding its market throughout the country by positioning itself as a leading player of biscuit market in the country. Product and Service Analysis: Benefit: The company produces pure Ragi biscuits with ghee, Ragi is a gluten free whole grain which is also preferred to be a staple food in south India and as well as preferred for diabetic control and weight reduction due to its high fibre content and act as a nutrient supplement irrespective of time and form of consumption. Final Price of the Product: Pack of 12 Biscuits at a price of Rs.15 Pack of 4 Biscuits at a price of Rs. 5 Location: The customer awareness & Preference towards Ragi products has created a very good market for all our products throughout the state and the manufacturing unit is located in Tumkur and from there the supply happens to nearby districts like Bangalore, Mysore, Mandya and few other places in North Karnataka.
- 3. Market Analysis: ď The biscuit industry is observed to be highly competitive in nature and the market is tapped by only few potential players supplying highly nutritious and quality biscuits. Increasing health awareness among the people may also serve as a major reason for this demand of nutritious Biscuits. ď Targeted customers of the company would be of all age group from children to Adults and the product positioning as a health beneficial biscuit would be an added advantage for this. The company also faces competition from existing players in the market such as Anmol, Nanjundeshwara Ragi Biscuits. ď The company also adopts Good Manufacturing Practices and improved strategic Planning in order to supply quality products at low cost. ď The promotional activities are done at point of purchase, big hoardings, local News Paper and Television channels. STRATEGIC PLAN 1) Marketing Product : Ragi Biscuits Price : Different product range to attract both rural and urban customers. Place : All over Karnataka Promotion: Through newspaper , advertisement ,seperatory category in retail outlets. Packaging : Cardboard box with square shape. 2) Pricing: Rs. 5 pack consists of 5 biscuits. Rs. 15 pack consists of 15 biscuits. Whereas our competitors are providing Rs. 20 pack with 8 biscuits. 3) Distribution: Our manufacturing unit is in Tumkur . We supply it to Bangalore & Mysore whereas we have distributers from Bangalore & Mysore to all over Karnataka.
- 4. Marketing Channels 4) Sales: For sales , our company have 9 salesperson for respective districts. Separate category in retail Small stalls near Hospital , schools , sports ground etc. 5) Forecast: As per the consumers preference , our company is thinking to expand our business to other millets made biscuit and offer family packs in 2-3 year. MANAGEMENT PROFILE ďˇ There are 4 Managing directors . Under MDs , there are 4 departments (a) Sales and Marketing (b) Production and marketing department. (c) Human Resource Development. (d) Financial Department. ďˇ There are hierarchy in our company for the work to be done more effienctly anf effectively. ďˇ In our company , there is HR system which recruit right people from many food management institutes like IIPM , CFTRI etc. ďˇ The workers in the manufacturing unit will be hired on the basis of skill and past experience in making Ragi Biscuits. ďˇ There is Area Manager who take care of total area assigned and territory manager report to area manager about sales and marketing of the product. ďˇ The salesperson has to report to territory manager and they have to deal with distributers and retailers. ďˇ The logistics and supply chain manager has to take care of all logistics and give report to the territory manager. ďˇ 9 salesperson Manufacturer Distributer Wholesaler Retailer Customer
- 5. FINANCIAL ANALYSIS (A) Fixed Capital: 1.Land and Building : Land and Building (rented) On Rent @ Rs.50/-Sq. meter Covered Area 250 Sq. meter 12500/- 2. Total cost of machinery 2,20,000 3. Pre-operative expenses 25,000 Total fixed capital 2,70,500 (B) Working Capital (Per month) (1 ) Staff and Labour (per month): S.No. Description No. Salary Total Value (Rs.) (a) Administrative & Supervisory i) Production Manager one 8000/- 8,000/- ii) Supervisor/storekeeper one 5000/- 5,000/- iii) Accountant one 5000/- 5,000/- iv) Salesman nine 4000/- 36,000/- v) Peon/watchman one 3000/- 3,000/- vi) Sweeper one 3000/- 3,000/- (b) Technical Skilled & Unskilled i) Skilled Worker two 4000/- 8,000/- ii) Semi Skilled Worker two 3500/- 7,000/- iii) Helper four 2500/- 10,000/- TOTAL 82,000/- Perquisites @ 15 % 12,300/- (2) Raw Material (per month): Total 94,300/- S.No. Description with specification Qty. Rate Value (Rs.) i) Ragi 5000Kg. 15/-per Kg. Rs 75,000/- ii) starch,vegetable fat ,salt, soya Rs 20,000 flour, soda, colours, preservatives etc.2500Kg. - iii) packaging material - - Rs 25,000/- 1,20,000/- (3) Utilities (per month): Electricity 10,000/- Water 2,000/-
- 6. 12,000/- (4) Other Expenditure (per month) 1. Postage & Stationary 500/- 2. Advertisement 3,000/- 3. Telephone 500/- 4. Repair & Maintenance 500/- 5. Transportation 1,000/- 6. Consumable 1,000/- 7. Sales expenses 2,000/- 8. Insurance 500/- 9. Misc. Expenses 1,000/- Total:10,000/- Total Recurring Expenditure (per month): 1) Salary & Wages 94,300/- 2) Raw Material 1,20,000/- 3) Utilities 12,000/- 4) Other Contingent Expenses 10,000/- Total: 2,34,300/- Working Capital for three months: 16,27,650/- Total Capital Investment: Fixed capital: 2,70,500/- Working capital for 3 months: 7,02,900/- Total: 9,73,400/- MACHINERY UTILIZATION: It is expected that during first year machine utilization will be 70% and during second year 85% and 100% in subsequent years. FINANCIAL ANALYSIS: 3. Cost of Production (per annum): (a) Total Recurring Cost per year 28,11,600/- (b) Depreciation on Machinery & Equipment @ 10% 40,000/- (c) Depreciation on Office Equipments & furniture @ 20% 8,000/- (d) Interest on Total Capital Investment @ 12% 116808/- Total: Say 29,76,408/- 30,00,000/-
- 7. 2. Turn Over( per annum): Sales turnover per Month S.No. Description Qty.(Kg.) Rate(per Kg.) Value (Rs.) (i) Biscuits Salty & Sweet 6000 150/- 9,00,000/- Less sales expenses@ 40% Net Sales Realization(turn over) 3,60,000/- per month: So Net Sales Realization(turn over) 5,40,000/- per Year : 64,80,000/- Net Profit per annum before Income Tax : 34,80,000/- (Sales- cost of production) 4. Net Profit Ratio: =Net profit x 100 Turn over =34,80,000 x 100 64,80,000 = 53.70% 5. Rate of Return: =Net profit x 100 Total investment =3480,000 x 100 9734000 = 45.30% BREAK EVEN ANALYSIS: Break Even Point (B.E.P) = Fixed Cost x 100 Fixed cost + profit = 270500 * 100/270500+3480000 =8.01
- 8. EXECUTIVE SUMMARY Our company is engaged in providing high quality nutritious Ragi biscuit which is delicious as well as healthy . It is good for children, young and old people who suffered from diabetes since it has taste of sugar but no glucose. The main motto of our company is to penetrate each and every market and to provide health concerned biscuits as other biscuits contain more and more glucose which is harmful for human health. The intention is to provide more quantity of biscuits in single packet as other competitors are busy in more profit making by reducing number of biscuits and increase the cost. The product which we marketed are from natural baked handmade in which the nutrients quality are retained in it. We branded our product as pure ragi made biscuits as it is og high nutrient quality. There are many competitors which is regional, national and international brands but our company has competitive advantage as the ragi used for making biscuits are from Karnataka only and we make sure that the number of biscuits will be more in packet.