Introduction

The process of setting up a business is preceded by the decision to choose entrepreneurship as a

career and identification of promising business ideas upon a careful examination of the
entrepreneurial opportunities. Generation of ideas is not enough; the business ideas must stand
the scrutiny from techno-economic, financial and legal perspectives. That is, after the initial
screening of the ideas that do not seem promising prima facie, so I have conduct an in-depth
examination for the ready to drink hot tea ,before settling for the one where I would like to exert
my time, money and energies. I have prepare a business plan that will serve as the road map for
Effective venturing, I may require institutional funding (in my case it is necessary to do so).
Setting up of new business enterprises is a very challenging task, I may likely to encounter many
problems enroute. I should be aware of these problems as to forewarn means to fore arm!

 OBJECTIVE
Our business strategy will revolve around the need to provide quality tea to our various target
customers, in the process fully satisfying their needs. This shall be undertaken through the
implementation of high quality control standards and technological innovations, as well as the
recruitment of a professional production and sales team, and the production of good quality
marketing material designed to cater for various kinds of customers. This marketing material
shall be professionally done so as to be reflective of our intended image and reputation. We
shall position ourselves as a quality manufacturer that strives to provide quench fulfillment,
enjoyment, reliability and a good image. We intend to establish a good rapport with all the
relevant stakeholders.

With time we intend to establish our presence on the World Wide Web, which will increase the
knowledge of our products to the various market segments we shall be targeting. Web presence
is a natural objective in reaching the appropriate potential customers. Well-done brochures,

Hence this will undoubtedly generate increased sales of our products.

Company profiles and business cards often have a triggering effect on clients contemplating on
ordering our products.

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 Our objectives will revolve around the following guiding principles:

Initial stage

 Conduct a feasibility analysis of the proposed business ideas in regard to

o Marketability

o Technical viability

o Funding

o Legalities

 Prepare a business plan

 Understand basic startup problems

After establishing business

 Provision of a great work environment, treating each other with respect and dignity.

 Apply high-quality standards of excellence to all business processes.

 Develop enthusiastically-satisfied customers all of the time.

 Contribute positively to our communities and our environment.

 To continuously formalize and measure cross-functional working communication so as to

ensure that the various departments work harmoniously towards attainment of company
objectives.

 To instill a culture of continuous improvement in beating standards of customer

satisfaction and efficiency.

 Fully commit to supporting growth and development in the economy.

Ultimately we intend to create a stable business platform that will create prosperity for all those
involved in the business venture at all levels, and to uplift unemployed Botswana’s who are
prepared to participate in this venture.

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 Products and its end users, application and consumer
Ready to drink tea Breweries produces products of high quality and impeccable taste. The
company currently produces two main lines of products, namely thrust& zero. All two have
unique properties that will enable them to excel on the market. We will also be watching for
technological developments in India and overseas, allowing us to be first on the market and
produce high-quality products through cost effective means. In addition the company will select
suitable products for production under license.

Our current product listing is as follows:

1. Thrust (normal flavored tea)

It is the only product available in the market having self heating mechanism, our ready to
drink tea has the superior flavor and texture, smooth, with no rough solids. Its content is
(confidentiality).
2. Zero (calories free)
Although it is similar in appearance to thrust and it is the only product(ready to drink tea)
available in the market which have zero calories and with no sugar in it, our sugar free tea has
the superior flavor and texture, smooth, with no rough solids
This denies the people in rural area access to these delicious and low calories product. In fact, it
serves to travelers’ travelling in trains, airlines and buses.
It directly targeting executive persons as it contains low calories and flavoring elements with
self heating mechanism so it directly become a product of premium segment product. We have
the ability to produce a long life thrust and zero that needs no heating, it can be sold from the
shelf in the same fashion as cold drinking and similar products. This means that it can be bought
by consumers who might not always have access to heating facilities, to be consumed later, as a
food whilst way from home, or as an emergency food supply. This is available in several flavors,
such as normal, elichci, ginger and masala and other xx flavors that the market might want. It is
also a good product to use during travelling and executive meeting and similar events.

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 Company Description

 Particulars of the Enterprise

i) Name of the Product(s): Thrust & Zero Product Code:______________________
ii) Name of the Unit and Address: A.D Corporation Pvt Ltd, GIDC Baroda, Gujarat, India
iii) Telephone No. Office: 98098355086 Factory:______________
iv) Name of the owners & Partner in Block Letters

• AVANEET DWIVEDI (OWENER)

• ISHA VORA (PARTNER)

• ALOK BHATTACHATRGEE (PARTNER)

• JATIN KANCHANI (PARTNER)

v) Constitution of the Firm: Partnership Pvt. Ltd.

vi) Qualification both Academic/Professional of the Entrepreneur(s)
• Name: - AVANEET DWIVEDI
• Qualification: - B.TECH (FOOD PROCESSING TECHNOLOGY),
- M.B.A (AGRIBUSINESS)
ix) Location/Proposed locations of offices: Ahmadabad, Baroda, Surat & Vapi
x) Name of the bank with which you want to deal with

• NABARD
• SIDBI
xi) Owner and partner investment is 65% of total capital
xii) Company will get remaining 35% capital from bank as loan at 15% rate
xiii) Company will form in January 2009

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 Why to form company

We have unique idea to produces a product which will be the only product available in the
market having self heating mechanism, it is ready to drink tea and it is targeting very
attractive market, right now no one is present in market with this idea so we are trying to
commercializing this idea into profitable business.

 Functions and key values of our product

• Provide Hygienic tea

• Availability to consume it at any time and any places
• Self heating mechanism (no need to heat up the tea)
• It will act as a status symbol for the consumer

 Plan to change product in worse condition in future

In future if conditions are not suitable for our business then we will diversify and change our
product. We will change our product (ready to drink tea) to milk tea powder and milk coffee
powder. Reason for producing this product (milk tea powder and milk coffee powder) is
basically the requirement of machines for (milk tea powder and milk coffee powder) is same
which is required for ready to drink tea.

 Industry in which company operates

Our company operates in brewery industry but serves in ready to drink sector it is because
it’s a new product. Our company main business is to serve hot hygienic tea and which can be
consume any where any time at any place.

 Industry growth

 The total turnover of the tea industry is around Rs. 10,000 crores.
 Since independence tea production has grown over 250%, while land area has just
grown by 40%.
 There has been a considerable increase in export too in the past few years. Total net
foreign exchange earned per annum is around Rs. 1847 crores.
 The labour intensive tea industry directly employs over 1.1 million workers and
generates income for another 10 million people approximately. Women constitute
50% of the workforce.

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 Trend in industry which provides opportunities and challenges to our
business

Market Trends
Our target markets are increasingly growing towards recognizing the difference between
poor quality brews and those of high quality. This development is an important trend for us
as it represents our target market. We now are having an increasing number of people who
appreciate the traditional brews whilst living in the urban areas. With this in mind we intend
to ensure that our packaging is respectable and attractive.
Today's extremely stressful work environment dictates that individuals consume healthy
drinks especially in the summer season, this presents an opportunity that we may exploit,
marketing the health aspect of our beverages

Opportunities
• Specific niche: Appreciation for high-quality brew, enjoyment, and refreshment (and
integration therein).
• The new generation of individuals and families has a far greater appreciation of attractive
packaging and have very high adoptability of new product by(Diamond W.D., and
Campbell, L. (1989) “The Framing of Sales Promotions: Adoptability of consumer play
important role” Advances in Consumer Research, Vol. 16, pp. 241-247.) now they are
very much status conscious.

• Current drive by government and specialized institutions such as the Indian Export
Development and Investment Authority towards export of locally manufactured products.
• Internet marketing and sales--though still in its infancy.
• Increasing number of foreign firms, especially from South Africa looking at penetrating
the market.

Challenges
The present growth in the market may result in market saturation, through competition. This
competition could emerge from a variety of given sources including:
• Established mass-market companies' development of new lines and vertically integrating
so as to be totally in control of supplies and products being sold on the respective
markets.

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 • New marketing strategies and tactics by established companies like nestle bru etc
• Existing competition.(Nescafe machine)
• Other start-up companies generated by healthy economic growth nationwide.
• Intolerable price increases by suppliers may occur. (Due to high inflation)

Target Market
o We are initially targeting only on Gujarat and in also Gujarat also we are targeting only on
urban area like Ahmadabad, Baroda, and Surat .Plant for production will be in Baroda.
Population density of cities which are our target market:
Ahmadabad -3,769,846
Baroda -1,200,981
Surat -4,505,000

o Details relate to area where our business will serve

Basically our business will serve only Ahmadabad Baroda and Surat cites initially and our
targets populations are travelers and business executives these are the following reason why
we selected these cities.

 All three cities have airports (domestic and international)

 These cities having railway stations which are the biggest junction of Gujarat

 In these cities largest bus depot of Gujarat are builds which connects all cities of
Gujarat (urban, semi urban, rural) with these cities (Ahmadabad Baroda and Surat).

 In these cities large number of MNCs, cooperates house and company are present
which make these cities as a business hub of Gujarat, therefore in these cities large
number of people are employed, and huge number of people are travelling daily.

o General traits of customers

Consumer profile

• Age: 20 to 60 year

• Income: above Rs 200000 per year

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 • Occupation: professional’s businessman’s/industrialists

• Spending ability: high

• Lifestyle: outdoor-oriented

• Gender: male, female

• Psychographic: Experiencers

• Personality: status conscious

• Consumer behavior: innovator, early adaptor

o Factors influence customers purchasing decision for my product are

following
• Feature of my product( self heating mechanism)

• Customer service (getting hot tea at anytime and at any place)

• Packaging of my product (my product have unique packaging)

• Price of my product

• Attitude of other(other person may influence it can have strong negative or positive
attitude toward my product)

The final decision of purchasing is done only by final user of my product, frequency of
purchasing is 2 to 3 times in a day. And my product is available in two different quantites
100ml and 200ml cans.

o Size of target market

 Total population of cities (source : NSSO national sample survey organization)

 Population of Ahmedabad: 3,769,846

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  Population of Surat: 4,505,000

 Population of Baroda: 1,200,981

 Tea consumers in following cities (source: www.indianreports.com)

 Ahmedabad : 79% of population
 Surat: 81% of population
 Baroda: 74.4% of population

 Percentage of people having income more than Rs180,000 in following cities

(Sources: www.itreturn.com)
 Ahmedabad : 39% of population
 Surat: 43% of population
 Baroda: 27% of population

 So our targeted market size will be

 Ahmedabad: 3,769,846 X 0.79 X 0.39 = 1161489.5
 Surat: 4505000 X 0.81 X 0.43 = 1569091.5
 Baroda: 1200981 X 0.744 X 0.27 = 241253

o Factor influence size of the potential target customer which are as follow

Relative advantage of product: degree to which the our product (ready to drink hot tea) is
superior to existing product (tea from tea vending machine)

Compatibility of product: degree to which the our product (ready to drink hot tea) matches
with value and expectation of consumer

Simplicity of product: degree to which the our product (ready to drink hot tea) is relatively
easy to use

Divisibility of product: degree to which the our product (ready to drink hot tea) can be made
know to consumer

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Communicability of the product: degree to which the our product (ready to drink hot tea)
benefits can be made know to the consumers

Affordability: degree to which the our product (ready to drink hot tea) economical

Social approval: degree to which the our product (ready to drink hot tea) will gain social or
community acceptance

Readiness to try: degree to which an individual is relatively earlier in adopting new product

34% 34%
Early Late

13/2%
Innovat

Times
of
adoptio
21/2% 16%
Early Laggards
adopter

According to the Trade Department, the tea market has been growing at a steady rate of 7%
per annum although it is projected to increase slightly in 2008 and 2009 & Income level per
capita is increased by 4 to 5% only so we can expect to grow market by 4% yearly

o Changes are occurring in the makeup of the market

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Macro-environment
Over the last few year abnormal weather has affected many parts of India, during the key
summer season. It has been extraordinarily severe with heavy rainfall, flooding and there
definitely promises to be low temperatures, particularly in the winter season in eastern
region of India. This is likely to have an adverse effect on our initial financial performance,
though marginal as consumption levels may decrease slightly.
At a large scale, market research demonstrates that the tea industry market is growing and
changing. Generally there is a trend toward more appealing and attractive tea brews as
potential customers either are moving to the urban areas as a result of urbanization or are
satisfied with an existing tea brew in their area. Research indicates that those in the rural
areas are often satisfied with the existing ted brew due to lack of access to other higher-
quality ted brews, whilst the new generation of executives being more educated and aware
of the global environment wants to be seen drinking something attractive and recognized by
others--status recognition. In addition this same market is not only more image conscious
but appreciative of a quality tea brew as it is more selective. Therefore with the emergence
of this generation of individuals, the appreciation of quality tea brews and packaging,
dictates that our product lines will be popular.
Private sector development has been recognized as a vital ingredient in creating employment
and training opportunities, and realizing the national goal of sustainable economic
diversification. In addition to the country increasingly becoming a tourist destination, we
foresee the demand for our products especially in the resorts and lodges airlines railway
station etc where it will be promoted. Through undertaking of our professional business
activities we foresee that it should not be too difficult to gain market acceptance provided
we deliver the final product on time, of good quality, and at competitive prices.

Technology
A.D.corparation Ltd will strive to maintain the latest and most efficient assembly
technology so as to ensure quality-tea brewed beverages, and maintain low production costs
ultimately benefiting the consumer. Keeping abreast with technological developments will
ensure we gain and maintain a competitive advantage utilizing the latest production
techniques.

Future Products
In putting the company together we have attempted to offer enough products to allow us to
always be in demand by our customers and clients. The most important factor in developing
future products is market need. Our understanding of the needs of our target market
segments shall be one of our competitive advantages. It is critical to our effort to develop
the right new products. We also intend to have what we call a "core product engine" that
will be the foundation of future products. This shall be established in time as we determine
our core product. In the future, A.D. Corporation will broaden its coverage by expanding
into additional markets and additional product areas. In doing so we will strive to ensure that
it is compatible with the existing products and assembly technology.

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 o Fulfillment of consumer needs through

1. The key fulfillment and delivery will be provided by the principals and values of the
business. The real core value will be the provision of a thirst quenching refreshing brew,
provided by a combination of quality ingredients, good production techniques, hard work,
and education (in that order). Hence we intend to ensure that the products we produce are
always of high quality and standards, and available to the relevant target market.
2. We will turn to reliable farmers, suppliers and distributors who will assist in ensuring that
the products are delivered timely and are of the highest quality. We will also rely on these
stakeholders for relevant information on the market situation (trends, consumer tastes,
feelings and comments amongst other things).

Competitors Analysis
Strengths
• Strategic market segmentation and implementation strategies.
• Diversified market segments: ensuring the lack of dependency on one particular market.
• Combination of skills in directorship. The directors intend to jointly develop business
strategy and long-term plans, having wide experience in product and business know-how.
• Establishment and maintenance of strong capital base.
• An aggressive and focused marketing campaign with clear goals and strategies.
• We have a New innovative product so we have the benefits of first mover

Weaknesses
• Lack of a reputation in comparison to our competitors.
• The introduction of new organizational practices and personnel who have not previously
worked together presents a challenge to the company.
• A limited financial base compared to the major players in the industry.
• Lack of clear-cut channels of distribution.

o Competitive advantage

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• Specific niche: Appreciation for high-quality brew, enjoyment, and refreshment (and
integration therein).
• The new generation of individuals and families has a far greater appreciation of attractive
packaging (image conscious).
• Product is strongly differentiated from other rival like Nescafe tea vending machine
• Attractive targeted marketed
• First mover of market have learning curve effect so our company have learn something
from experience backward integration, how to reduce cost of production etc.

o Obstacles face as a player trying to enter in the market

The present growth in the market may result in market saturation, through competition. This
competition could emerge from a variety of given sources including:

1. Established mass-market companies' development of new lines and vertically integrating

so as to be totally in control of supplies and products being sold on the respective
markets.

2. New marketing strategies and tactics by established products and companies.

3. To know core competency of Existing competitors.

4. Other start-up companies generated by healthy economic growth nationwide.

o Competitive Edge

Our competitive edge will be our dominance of access to previously untouched areas,
customer orientation and traditional high-quality tea through stringent quality control.
Although Nescafe tea vending machine dominates the local market, it does not penetrate
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 the untouched areas.

Though we shall be serving different market segments we intend to focus on by doing

niche marketing.

Marketing And Sales Plan

 Market Trends
Our target markets are increasingly growing towards recognizing the difference between poor
quality tea and those of high quality. This development is an important trend for us as it
represents our target market. We now are having an increasing number of people who
appreciate the traditional tea whilst living in the urban areas. With this in mind we intend to
ensure that our packaging is respectable and attractive.
Today's extremely stressful work environment dictates that individuals consume hygienic
drinks especially in the monsoon season, this presents an opportunity that we may exploit,
marketing the hygienic aspect of our tea.

 Industry Analysis
Industry analysis information is presented in the following subtopics.

• Competition and Buying Patterns

The key element in purchase decisions made at the A.D.Tea Breweries Ltd customer level is the
availability of an affordable, thirst-quenching product of good quality. The most important

14
factor in this market is the distribution network. This is particularly so considering the good
distribution network.

• Main Competitors
Being in a predominantly monopolistic market structure, competition in the tea manufacturing
market as a whole is not that intense (in terms of numbers) at the current time due to the
dominance of Nescafe tea vending machine, which has been on the market for a relatively long
period of time. Cognizance should also be taken of home tea who represent competition on our
intended market. However upon closer research we identified several niches in the market such
as tea stalls, café, restaurants etc that we may exploit, not wanting to confront one-on-one with
them.
In general, our competition will be stiff, as we intend to penetrate the high to medium earning
customer. At the same time we shall be differentiating ourselves from Nescafe tea vending
machine, tea stalls, café, restaurants etc. We intend to market ourselves in such a way that with
time competitor customers will choose our products over competitors' on the basis of our higher
quality, thirst-quenching tea and give assurances of hygienic.

Nescafe tea vending Machine

Arguably the largest and most reputable manufacturer, supplier and marketer of tea in the
country, Nescafe has been on the market for a considerable period of time now. Part of the large
and extremely reputable conglomerate, currently the dominant domestic producers of ready to
drink tea, nescafe is able to take advantage of the financial, managerial and technical clout that
it has through International market. Due to its size it enjoys an economy of scale and thus the
competitive advantage of being able to offer low priced tea in large quantities to its target
markets.
Nescafe main products is tea vending machine and its ready to drink powder pouch of tea ,
which will be one of our main competitor products. Tea vending machine and its ready to drink
powder pouch of tea is currently mass marketed in the whole of India and is popular amongst
the urban and town folk. This is mainly because it is in its growing stage. However a frailty of
Tea vending machine and its ready to drink powder pouch of tea is that the product does not
maintain freshness for a long period. Hence A.D.tea breweries Ltd intends to take advantage of
this weakness.

Nescafe
Recent financial results from Nescafe Holdings indicate that the organization as a whole has
continued to perform exceptionally well . Turnover grew by 42% whilst operating profit is up

15
60% from $21.5 million to $34.5 million. For the 12 months to 31 March 2006, volume growth
exceeded non-mining GDP growth by more than 2%, resulting in turnover growth of 12%.
According to the audited results, higher volumes and turnover coupled with greater productivity
and stringent cost controls translated into excellent earnings growth. With this in mind we
strongly believe that there is an extremely lucrative market we may exploit.

 Market segmentation
A.D. tea Breweries Ltd will be focusing on the corporate and working class who appreciate
good quality traditional tea. The working class will range from the miners who constitute a large
portion of the market, to administrative personnel appreciative of good quality traditional tea.
The corporate or managerial segment will constitute those managers who though aware of their
image and reputation, want to put aside their ties and jackets after hours and/or on weekdays to
drink good traditional tea, easily accessible in the urban areas.

Our most important group of potential customers are those who want to have an enjoyable time
whilst drinking a good refreshing tea beverage. They do not want to waste their time making
their own tea brew, but appreciate a good quality tea at a reasonable price.
We also intend to appeal to the foreign and local tourists who would be looking at experiencing
traditional foods and drinks, a change from the usual beverages they often have

 Positioning of company in market

We intend to provide a quality tea that not only quenches one's thirst and gives refreshment at
anytime & anywhere but also enables one to enjoy themselves and be proud of it.
Our products will a status building product with quality, hygiene and with attractive packaging
which give instant refreshment.

 Marketing strategies

Our marketing strategy emphasizes focus. This will be the key. We are a relatively new company
and hence must focus on certain kinds of products with certain kinds of consumers. Initially
A.D.Tea breweries Ltd will focus on the local market and in the urban and previously
inaccessible areas where there is a large market for our products. Hence the form of growth that
shall be initially pursued will be that of organic growth mainly due to limited resources and the
need to instill confidence in our products. The target customers will include key decision-makers
the aim being to obtain an initial order and fully satisfy the customer from then on.

• We are currently building image and awareness through consistency and distinctiveness
in our product provision.

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 • We intend to focus on delivering quality products that in turn produce good referrals,
which can then generate revenue. We intend to always have a relatively heavy personal
selling component to our marketing strategy as previously discussed. Hence we intend to
always be active in personal relationships with clients and strategic allies keeping abreast of
their needs and wants.
• We are focusing advertising on several key media.

We intend to achieve growth by creating a more enthusiastic customer culture than that of our
competitors. All criteria from price competitiveness to staff attitudes are to be initially measured
six-monthly, and then on a more regular basis as time goes on. The results will go down to depot
level and be compared with the overall target. This form of consistent measurement of strategic
goals will ensure that the organization remains focused on its goals and objectives, making any
necessary adjustments where need be.
• Value Proposition
Our value proposition is offering our customers refreshness and enjoyment at reasonable prices
ensuring peace of both body and mind. Hence we intend to:
1. Market the benefit, not the product.
2. Ensure customer satisfaction.
3. Develop long relationships.
4. Market the company.
This value proposition shall be communicated through advertisements, personal selling, sales
literature and catalogues, and referrals that emphasize how the company is able to provide
refreshment, enjoyment and fulfillment to the customers.
Marketing mix
One core element of our marketing strategy will be that of differentiation from our competitors.
In terms of promotion, we intend to sell our company as a differentiated strategic ally, not just
our products. In price, we intend to offer extremely reasonable prices in comparison to the
competition and we need to be able to sustain that. Market penetration through premium pricing
which will focus on the upper-end of the market which is premium segment.
• Product strategy
Our product marketing will emphasize the benefits of consuming our products, including
refreshment and enjoyment of top-quality tea with hygiene. We intend to sell the opportunity to
enjoy oneself amongst friends, family and/or colleagues. This will come out in our advertising,
delivery and collateral such as sales literature and business cards. Our product marketing's most
important challenge will be the problem of being accepted and appreciated on the market as a
provider of quality products. Hence we intend to not only meet customers' expectations but to
exceed them, initially targeting a market share of 6%.
We intend to focus on the individual or group who want to enjoy themselves through the
consumption and sharing of refreshing hygienic tea. However, not wanting to limit our horizons
in the initial period, we intend to be continually looking out for opportunities that we may

17
exploit. In all cases we intend to provide a thorough understanding and appreciation of the
products to the customer and the benefits of consuming them.
• Pricing Strategy
Initially our prices will not be under our control but dictated by the market conditions prevailing
at the particular time. This is particularly so in the case of products which are also produced by
our competitors, as they are often representing a scale for consumers. However we realize that
we must charge appropriately for the quality and work we shall be providing, in addition to the
distribution of the products. Hence we intend the price will accommodate the mark ups
prevailing in the industry, as well as our own costs. To be competitive in the market we intend to
offer discounts to customers making bulk orders, which are in competition with the industry.
This will also assist in the establishment of customer loyalty. Hence our prices shall be as
follows:
Product 100ml 200ml
Thrust 15 20
Zero 25 30
We intend our income structure to match our cost structure, so as to ensure that the salaries we
pay to assure good workmanship is balanced by the price we charge. We will make sure that we
charge for the product, workmanship and delivery with our aim being to achieve a gross profit
margin of at least 30% in our initial years of operation. All in all we intend our prices to be
extremely competitive on the market.

• Promotion Strategy
Our promotion strategy will be based primarily on informing potential customers of our
existence and making the right information available to our target customer. Since we shall be
targeting different segments, the promotional tools and messages may vary slightly to match the
intended market. However in all cases the marketing will convey the sense of quality, refreshness
and hygienic in every picture, every promotion and every publication. Promotional campaigns
will seek to promote the 'sharing aspect' of the tea, customers drinking these products in groups.
Our promotional activities shall be focused towards driving the organization's overall strategy
relentlessly, developing internal consistency and prepare it to confront any radical changes that
may arise. In such a market we cannot afford to appear in, or produce, second-rate material that
make our products look less than they are. We intend to leverage our presence using quality
brochures and other sales literature, including promotional material such as pens, complimentary
slips and stickers. Due to the fact that our products are in the introductory phase on the market,
promotional expenses are high in order to generate customer attention and knowledge of our
products existence.
We intend to spread the word about our business through the following:
 Advertising
In view of the fact that we are entering a market largely dominated by Nescafe Limited. We
intend to undertake extensive advertising of our products in addition to our brand name--
company name. This is so as to instill awareness and knowledge of our existence in the market

18
place, which hopefully shall convert into market share. Hence the need to ensure that our
products are constantly available to our target market, and of consistent high quality. Whilst we
are committed to providing products of uncompromising quality to meet the needs and
expectations, the company believes its products should be advertised and promoted in an honest
and ethical manner that respects the values of our consumers' societies. Examples A constant
look out will also be made of any special editions in the local newspapers, which may provide an
opportunity to advertise.
 Events
These are increasingly becoming important as more firms establish in the country and hence the
need to be known. The organization aims to participate in trade shows and quality taste tests. Not
only will these increase awareness of the products, but if a particular product were to gain
recognition, for example through being chosen #1 at a taste test, the organization will be able to
take advantage of this in all its promotional campaigns, adding leverage to its reputation and
image. Undoubtedly this would add confidence and pride in our staff complement as their hard
work would be recognized often at the highest levels. Communicating such achievements often
gives customers a feeling that they can rely on the product, and this builds strong customer
loyalty.
 Public Relations
Recognizing that we are relatively new on the market there will be a need to organize an event,
of grandeur nature, introducing ourselves onto the market. At this we intend to invite potential
customers, senior officials, including the Minister of Industry and Commerce, and other
stakeholders so as to penetrate the market. With this we also intend to place news stories and
features in magazines and newspapers to keep stakeholders updated on the latest developments
and to increase awareness. We also plan to have a major festival like Navratri, Diwali etc with
appropriately named, that maintains and promotes Gujarati culture. This will assist in the
recognition and appreciation of our company in the surrounding community especially. Our
efforts on community service will show that the company has its community at heart,
contributing towards the establishment of a good and reputable image. Homes for the under
privileged will be also be built in the medium, to long term as we plough back into the society
we operate in. In addition we intend to pursue educational sponsorship for the less advantaged
but promising young individuals in the community. This will constitute some of our corporate
social responsibility details of which are provided in the respective section.
We also intend to experiment with a road show in the various neglected remote areas giving out
caps, bags, and other such prizes to individuals who answer questions correctly. This will also
enable our business name and products to be better known by the respective communities.
However we are extremely confident that these road shows if well planned will be a success as
they encourage community participation. Ready to drink tea tours shall also be arranged with
interested stakeholders including school children and college students. This is so as to increase
awareness of our facilities and products and also showing confidence in our production process
and standards. Hopefully visitors will leave impressed and confident in our products, adding to
the possibility of positive referrals. These same tours will also be arranged with prospective
clients/order-takers.

19
Still in the infancy idea stage we have in mind the hosting of a 'fest' whereby guzzlers of our tea
as well as first-timers are encouraged to drink as much as possible whilst enjoying themselves.
This is likely to be held in the coldest month of the year (December) when people are often
extremely thirsty to drink tea. Hence the name 'December fest' might be appropriate. Proceeds of
such festivities are to be donated to charities.
 Personal Selling
This shall be undertaken in the form of sales calls whereby a sales person will go out to potential
customers and distributors informing them what products we are able to offer them. In addition
the sales person will listen to client's needs at close hand, so as to ensure that the product is
delivered timely and that it is the right product as demanded by the surrounding community.
Close analysis shall also be undertaken of the consumption patterns of the respective
communities, that is whether they prefer larger or smaller containers. This will ensure that our
products are customized as much as possible to the surrounding community's needs and wants. In
cases where there is the opportunity of obtaining a large order it may be necessary for the top
management to go out personally, especially considering the fact that we are still a relatively new
firm in the market.
 Direct Marketing
This will be used, but only to a limited extent, in the form of telemarketing and informing
potential customers (event organizers) and obtaining referrals where possible. In the case of
telemarketing it will involve our targeting potential customers/distributors of our products and
informing them of our existence and the products we offer. We may then arrange for an
appointment with the respective decision-maker/order-maker, with the intention being to lure
them into ordering one or more of our product .
 .Distribution Strategy
We believe that through our obsession for improvement, and commitment to a leadership
position in our respective markets, we can overcome the traditionally binding constraints of
resource base, firm size and narrow conceptualization of our business domain. This shall be
undertaken through coordination and logical integration of our distribution operations. We aim to
reduce cycle time for key processes, eliminate rework and waste, and optimize our human
resources utilization. To attain low lead-times we intend to We intend to ensure that our tea are
located close to our major distribution centers not only to minimize costs but also to enable our
products to be easily available, in the best condition, in the different markets . so we have design
a distribution channel in wedges shape

20
In terms of actual delivery for every vehicle the daily fuel used, kilometers driven, repairs and
maintenance costs must be recorded and compared with the set standard.

 Sales Strategy
We intend to focus on improving our implementation, by working on key objectives and better
coordination of marketing efforts. For the short term at least, the selling process will depend on
personal selling and advertising to lure and inform potential clients about the products we offer
and the benefits of consuming our products. Our marketing does not intend to affect the
perception of need as much as knowledge and awareness of the product categories.

 Sales Forecast
The sales forecast monthly summary is included below. The annual sales projections are
included later in the plan. It should be noted that as we become established and known on the
market we project sales to increase at a faster rate than the initial year.

Sales Forecast

Sales 2009 2010 2011

Thrust Rs 1,92,00,000 Rs 2,50,00,000 Rs 3,20,00,000
Zero Rs 1,20,00,000 Rs 1,50,00,000 Rs 1,90,00,000
Total Sales Rs 3,12,00,000 Rs 4,00 ,00,000 Rs5,10,00,000

21
 Marketing vehicle

We are using print marketing vehicle for delivering our, massage to target market we are using
different type of media which are as follows

 Billboards: we will use billboards near airports, bus stops, in cities area
 Banners: we use banners at railway stations, big events which are organized in cities
 Ads in monthly magazine: in business magazine like (business today) we will give ads

22
  Catalogs: we will prints catalogs which are given in airlines and traveler buses etc

Advertising Media periods

Billboards For six month only
Banners Through the year
Ads in monthly magazine Every month
Catalogs Three times in a months

 Sales people’s calculation

We have divided our client in two classes
Class A: It contains Airlines companies, hotels and lodges MNCs companies
Class B: It contains railways platforms stall, bus stands shops, events managers, tours and
travels

In Class A we have
• Airlines:6 domestic and 4 internationals airline in 3 domestic airports and 1 in international ,
24 calls have to do
• Hotels: 10 hotels in three cities so 30 calls we have to do

• Lodges:7 lodges in three cities so 21 call we have to do

In Class B we have
• Railways platform stalls: total platform in Ahmedabad, Baroda &surat is 24 and 4 stalls in
each platform so total call will be 96
• Bus stand shop: 6 big bus stations are present and 10 shops in each bus stops so total call will
be 60

• Event management company: 12 company in three cities so we have 36 call to do

• Tour and travels : we have 15 company in three states so we have 45 call to do

• Business firm: we are taking 500 company as our client

• Capacity of sale person to call in a year/ call frequency for each client
 Class A: 36 call x 60 minutes per clients = 36 hours/years
 Class B: 12 call x 30 minutes per clients = 6 hours/year

• Workload necessary to cover the entire market

23
  Class A: 75 call x 36 hours /year = 2700 hours
 Class B: 737 call x 6 hours/year = 4422 hours
Total = 7122 hours

• Total work time available per sales person in a year

If we assume 40 working hours per week and we have total 45 working week in a year the total
hours available for year is (40 hours/week x 45 week per year)= 1800 hours

• Divide the total work time available by different activities per salesperson

Selling activates 40% = 720 hours

Non-selling activates 30% = 540 hours
Travelling 30% = 540 hours
Total 100% = 1800 hours

• Total number of sales people needed

7122 = 10 approx sales peoples needed

720

 Job structure of sales forces

Sales
Manager

Sale area Sales area Sales area

manager manager manager Surat
Ahmedabad (1) Baroda (1) (1)

Salespeople Salespeople Salespeople

(4) (3) (43) (4)
 Salespeople’s payment structure

Salary = Basic + D.A+ T.A + Incentive

 Basic = Rs4000

24
  Travelling allows= on km traveled, it is decided
 Dear allows = Depend on inflation
 Incentive = Depend on successful call achieves

 Training of salespeople

 Didactic Method
• One-on-one Instruction or Direct teaching approach.
• Applicable to skilled based training programs
• Lecture is delivered to number of people to cover a specific topic only
• The trainer should be both an expert in managing the audience and an authority on the
subject.
• The trainer should understand the level of knowledge of trainees.
• Content of the training program.

Visual Support
• Slide presentation
• Transparencies
• Flip charts

 Participative Method

• Learning by doing
• Helps in cross-fertilization of ideas, beliefs, attitudes, knowledge and experience.

1) Conferences
• Highly structured device
• Used for motivating sales people
• Chairman is a key figure
• Speakers are invite

2) Seminars
• A seminar is a conference on a smaller scale which incorporates a greater degree of
participation from the members.
• Speakers are acknowledged specialist who make brief presentation.
• Seminar is divided in to small syndicate groups

Syndicate group contains 4 to 6 people.

25
 3) Discussions
• Use for issues related to sales to get views of different sales group
• Qualities needed in a discussion leader
– Skilled in planning
– Careful preparation
– Encouraging the involvement of individuals
– Controlling the debate
– Summarizing the result of the meeting
– Ensuring suitable action

 Motivational tool for motivation

Companies need to design different kinds of motivational programmes like bonus contests
and enhanced commissions for the sales staff. These programmes are used to motivate the
sales people to arrive at a higher goal and achieve the targets desired by the company. The
motivational programmes are also undertaken to counter the offensive marketing moves by
the competitor, seasonal fluctuations in demand, and to push a mature product in the
industry, so that new products can be introduced. Motivational programmes are also
undertaken to provide additional support to new products added to the current portfolio of the
firms. Coupons, conferences, contests, and bonuses are the most popular motivational tools
in Indian Organisations.

• Two types of motivational factors:

 Financial: Incentives, rewards, bonus, discount coupons.

 Non financial: It gives prestige, status and high standard of living.

Production And Operation Plan

26
Production Programme

• Annual Installed Capacity : 3600000 units per year

• Utilization of capacity : 76% only

• Number of shifts per day : 2 (8 hours each shift)

• Size of batch : 5000 unit (Thrust)

: 2600 unit (Zero)

Total
Cost
Curve

27
• Stepwise conversion process from raw material to finishes

Milk (liquid) Tea leaf Sugar

Milk (concentration) Tea powder

Milk powder

Milk + tea + sugar

Milk + tea+ sugar in cans cans

Water addition

Sealing of inner cans

Addition of chemical (outer can)

Sealing of chemical

28
 Catalysis addition

Final packaging

Stores

 Power consumption

section Connectedload Loadfactor ConsumptionperWhour

orkinghour/annum Annual consumption(KHW)
Milksilo 10 75% 7.5 3600 27000
Cycloneevaporator 22 70% 15.4 4200 64680
Dispenser (3) 16 70% 11.2 6000 67200
Conveyors 15 75% 11.25 4000 45000
Canwasher 13 70% 9.1 3600 32760
Sealingmachine 13 75% 9.75 4200 40950
Miscellaneous&lighting 7 70% 4.9 3600 17640
Total 124 295230

 Fuel consumption

Section Daily use Yearly use

29
Diesel 10 liter 3150liter

Plant layout
Tea Can Water Sealing
storage M/c

Gate
Storage

Packaging
m/c

Office

Roa Milk silo Cyclone Dispenser Chemic

d evaporat Conveyor
al
or belt
dispens

Utilities and overheads cost

sr.no particulars monthly yearly
1 electricity 8000 96000
2 fuel 8750 105000
3 water 3000 36000
4 transportation 5600 67200
total 25350 304200

Administrative Expenses

30
 monthly yearly
stationary / printing 4000 48000
postage 3000 36000
telephone 6000 72000
legal charges 8000 96000
travelling 13000 156000
miscellaneous 10000 120000
total 44000 528000

Break even Analysis

fixed cost monthly yearly
Repair/ 12000 144000
maintances
Rent office 12000 144000
deposit - 20000
Insurance -
Salary 400000 4800000
Administrative 44000 528000
Interest - 1500000
Depreciation
variable cost monthly- 1145000
1000 units per
total 8281000
day utilization
Raw material 87500
cans 95000
power 3200
fuel 8750
wages 3200
packaging 18750
transportation 5600
chemical 40000
total 262000

Cost price of one unit =fixed cost yearly + {(variable cost one unit) x quantity of day}
315

Total Quantity of Day

Cost of one unit= 26628+(10.49 x 7600) = Rs 13.9

7600

31
Breakeven point = Fixed cost yearly
(S.P – V.C) x Q of a day (thrust) + S.P – V.C) x Q of a day (zero)

Breakeven point = 8182000 =134 days

(20-13.9) x 5000 + (25-15.2) x 2600

• Breakeven point show how many days required

• Break even graph show how many unit required

32
 Management Plan
Manpower Requirement

Sr.no Particular Numbers Salary per Monthly Total

monthly per salary Rs.
employee
(A) Factory Staff
1. Production Manager 1 Rs 30,000 Rs30000
2. Supervisor 2 Rs 15,000 Rs30000
3. Skilled Worker 10 Rs 4,500 Rs45000
4. Semi skilled Worker 8 Rs 2,500 Rs20000
5. Unskilled Worker 6 Rs 3,500 Rs21000
6. Chowkidar 4 Rs 1,500
Rs6000
(B) Office Staff
7. Clark Typist 6 Rs 3,000 Rs21000
8. Accountant 2 Rs 8,000 Rs16000
9. Peon 4 Rs 2,000 Rs10000

33
 (C) Sales Staff
10. Sales Manager 2 Rs 30,000 Rs90000
11. Field staff 12 Rs 5,000 Rs60000

Sub total 349000+104700

ADD: Benefits @30%
Total Rs453700

Structure of Management

Managing
Director

Marketing/sales Finances Production

Supervis Supervis
Supervis Supervis Supervis

Sales Sales Sales Workers Workers

people people people

Accountan
t

34
 Finance Plan
Profit and loss account
Projection For ending years

Sr.no particulars monthly year year year

2009 2010 2011
A Cost of Production
1 Raw Material(tea &milk) 87500 1050000 95000 1140000 120000 1440000
Dextrose’s 10000 120000 12000 144000 16000 192000
sugar 20000 240000 24000 288000 28000 336000
cans 5250 63000 9800 117600 12000 144000
2 Utilities (chemical) 40000 480000 50000 600000 65000 780000
electricity 8000 300000 12000 300000 14000 300000
fuel 8750 105000 12000 144000 15000 180000
water 3000 36000 3500 42000 4000 48000
transportation 5600 67200 7600 91200 8800 105600
3 Consumables, Stores & 9000 108000 14000 168000 18000 216000
spares

35
 4 Repair & Maintenance 12000 144000 17000 204000 21000 252000
5 Rents 12000 144000 15000 180000 17000 204000
Insurance 100000 1200000 100000 1200000 100000 1200000
6 Salaries 400000 4800000 550000 6600000 630000 7560000
7 Administration 598350 7180200 690000 8280000 750000 9000000
Expenses’
8 selling & Distribution 20,000 240000 35,000 420000 40,000 480000
transportation 5600 67200 8000 96000 11000 132000
9 Packaging Expenses 14062.5 168750 18000 216000 21000 252000
10 Miscellaneous Expanses 6000 72000 10000 120000 12000 144000
11 Interest on loan 1500000 1500000 1500000
12 Depreciation
building 800000 720000 648000
machinery 150000 52500 44625
tools/ furniture 120000 84000 58800
computer 75000 56250 42100
14 advertising 1000000 1800000 2100000
Total Production Cost 20230350 24563550 27359125
Sr.no Particulars
B Income
1 Total sales income
Thrust 1600000 19200000 25000000 32000000
Zero 1000000 12000000 15000000 19000000
2 scrap 1000 12000 15000 18000
Total Annual Income 31212000 40015000 51018000
C Gross Profit (B-A) 10981650 15451450 23658875
D Income Tax (38243578 (5408008 (9463550)
) )
E Net Profit 7138073 10043443 14195325

years 2009 2010 2011

36
 Cash flow statements
Projections For the year ended on 31 march

37
 Year 2009 2010 2011
A Cash flow From
Operating Activities
Net profit Before tax 1098165 15451450 23658875
0

Depreciation -1145000 -912750 -793525

Interest -1500000 -1500000 -1500000
Total 8336650 13038700 21365350
Inventories 500000 1885400 2144000
creditor 368250 422400 528000
Total 868250 2307800 2672000
tax paid -3843578 -5408008 -9463550
Net operating cash 5361322 9938492 14573800
activities
B Cash flow from
investing Activities
Purchase of 2855000 17405000 16492250
Fixed Asset 0
Interest nil nil nil
Net investing cash 2855000 17405000 16492250
activities 0
C Cash flow from
financing Activities
Proceeds
long term Borrowing -9000000 -9000000 -9000000
Payment
long term Borrowing nil nil nil
Net financial cash -9000000 -9000000 -9000000
activates
Cash flow summary
Net Cash from 5361322 9938492 14573800
operating Activities
Net Cash from 2855000 17405000 16492250
investing Activities 0
Net Cash from -9000000 -9000000 -9000000
Financing Activities
Net cash 2491132 18343492 22066050
2
opening Balance nil 24911322 43254814
Cash and cash 2491132 43254814 65320864
equivalent 2

Balance sheet
Projections

38
years 2009 2010 2011
Liabilitie
s
1 Capital 3000000 3000000 30000000
0 0
net profit 7138073 1004344 14195325
3
Total 3713807 4004344 4419532
3 3 5
2 Current liabilities
(3 months credit
periods)
Raw Material(tea 87500 95000 120000
&milk)
Dextrose’s 10000 12000 16000
Sugar 20000 24000 28000
Cans 5250 9800 12000
Total 12275 368250 140800 422400 176000 528000
0
3 Provident fund 3853629 7707258 11560887
4 Secured Loan 9000000 9000000 9000000
5 Reserve Funds 2456370 860420 4728467
Total 5281632 6807696 84208004
2 4
Assets
6 Fixed assets
plant & machinery 2855000 1740500 16492250
0 0
(depreciation) -1145000 -912750 -793610
Total 2740500 1649225 1569864
0 0 0
7 Patents and nil 444500 444500
trademark
8 Investment nil 6000000 600000
9 Inventories 500000 1885400 2144000
10 Cash and Cash 2491132 4325481 65320864
equivalent 2 4
Total 5281632 6807696 84208004
2 4

39
 Summary of Business Ratios
Ratio Analysis
Ratios 2009 2010 2011
Sales Growth 0.00 28% 29.12%
Percent of Total Assets
Inventory 10.48% 10.76% 10.52%
Other Current Assets 0.00% 0.00% 0.00%
Total Current Assets 37.16% 42.15% 50.22%
Long-term Assets 62.84% 57.85% 49.78%
Total Assets 100.00% 100.00% 100.00%

Current Liabilities 14.16% 7.33% 7.14%

Long-term Liabilities 0.00% 0.00% 0.00%
Total Liabilities 14.16% 7.33% 7.14%
Net Worth 85.84% 92.67% 92.86%

Percent of Sales
Sales 100.00% 100.00% 100.00%
Gross Margin 44.00% 44.00% 44.00%
Selling, General &
36.30% 34.19% 34.36%
Administrative Expenses
Advertising Expenses 1.64% 1.56% 1.46%
Profit Before Interest and
10.41% 13.15% 12.86%
Taxes

Main Ratios
Liquidity Ratios
Current 2.62 5.75 7.03
Quick 1.88 4.28 5.56
Pre-tax Return on Net
14.90% 18.05% 17.31%
Worth
Pre-tax Return on Assets 12.79% 16.73% 16.07%

Additional Ratios 2009 2010 2012

Net Profit Margin 7.75% 9.81% 9.59%

Activity Ratios
Inventory Turnover 10.91 6.97 7.03
Accounts Payable
7.67 12.17 12.17
Turnover
Total Asset Turnover 1.25 1.28 1.25
Net Working Capital 25043072 34267810 41087632

Additional Ratios
Assets to Sales 0.80 0.78 0.80
Acid Test 0.22 0.98 2.24
Sales/Net Worth 1.45 1.38 1.35

40
Ratio 2009 2010 2011
ROI 23.79% 33.47% 47.31%
ROC 21.9 32.5% 40.8%

PRELIMINARY & PRE-OPERATIVE EXPENSES

Sr. No Particular Rupees

1 Legal Expenses, Scrutiny Fees 5,000
2 Project Report Preparation 1000
3 Establishment Expenses 1000
4 Electrification & Water Deposits 8,000
5 Inauguration Expenses & Other Expenses 12,000
6 Telephone Deposit 3,000
Total 30,000

MEANS OF FINANCE
The cost of the project as stated above is suggested to be met through the sources:
Sr. No Particular Rupees
1 Self financing 50,00,000
2 Promoters 1,60,00,000
3 Institutions loan 90,00,000
Total Rs 3,00,00,000

COST OF THE PROJECT

The cost of the project has been estimated at total Rs.3, 00, 00,000

41
Sr. No Particular Rupees
1 Office Rent (deposit) 1,44,000
2 Plant & machinery 2,85,50,000
3 Other Fixed Asset 2,640
4 Preliminary & pre-operative Expenses 15,300
5 30% of insurance, tax, fright, installations etc. 60,000
Total Rs 2,87,71,940

Future Development
Company main goal is “To be a premium global conglomerate in ready to drink products
with a clear focus on business” and it can be archive by:

Integrity
Commitment
Passion
Seamlessness
Speed

Milestones plan to met in coming year is to expand our business throughout India and Also start

42
exporting our product outside India. Our value proposition is offering our customers refreshness
and enjoyment at reasonable prices ensuring peace of both body and mind. Hence we intend to:
1. Market the benefit, not the product.
2. Ensure customer satisfaction.
3. Develop long relationships.
4. Market the company.
Through all this make company brand image as a refreshing and enhancing status of person. And
should have largest ready to drink product distribution channel throughout India company. We
can achive our goal by following things
1. We intend to watch our results very carefully. We may need to drop production of certain
products if we cannot get the margin up or material becomes difficult to obtain. We might
be able to avoid the straight competition with the major companies by focusing more on
the previously mentioned products.
2. Another possibility is the introduction of a new company(s) in our niche. Hence the need
to undertake aggressive marketing and networking.
3. An established tea brew manufacturer may begin targeting to our target market niche.
Hence the need for commitment in our work and striving of total quality in our
organization.
4. Though India overall is rather secure on the labor front in terms of strikes we intend to
have in place a mechanism that will ensure that were this to occur the negative effects
would be minimized. However further research and analysis into the above is still being
undertaken

• Few control we have cheack time to time because .The local tea brewing market has been
growing steadily over the last few years due to increases in people's disposable income
and opening of the economy. With this in mind we intend our marketing programs to
expand accordingly. The introduction of quality catalogues and sales literature will enable
A.D Breweries Pvt LTD to market to potential customers. We project sales to increase
accordingly, though slightly slower as we establish a reputation for ourselves. With time, a
presence on the Internet and participation in regional trade shows will be key milestones
to expanding sales and marketing potentials through the utilization of new channels and
identification of potential customers.
Throughout the year we intend to undertake regular evaluations of our marketing
programs so as to ensure that we are in-line with our intended objectives.
In summary we intend to undertake the following:
1. Tracking and follow-up: We intend to have the discipline, as an organization, to track

43
 results of the business plan and make sure that we implement.
2. Market segment focus: We intend to have the discipline to maintain the market segment
focus.
Saying no: Though difficult initially, we intend to be able to say no to special deals that
take us away from the target focus and are unprofitable .
• All potential risk can be reduce by doing proper market research time to time so that a
proper action can be taken to avoid and plan a good strategy to sustain in market for
longer period with a good amount of profit.

Bibliography
Reference book
• “Marketing Research: An Applied Orientation “By Malhotra K. Naresh,
/Edition: fourth/Publication: Pearson Education

• “Marketing Management “By Philip Kotler/Edition: 12th /Publication: Pearson

Education

• “Financial Management “By I M Pandey/Ninth Edition/vikas publishing house

Pvt LTD

• “Entrepreneurships “By Robert. D. Hisrich, Michael. P. Peters, Dean. A.

Shepherd/sixth Edition/ Tata McGraw HILL

44
 • “Crafting And Executing Strategy” By Arthur.A.ThompsonJr, A.J. Strickland
III,Arun.K.Jain/14th Edition/ Tata McGraw HILL

• “Sales Force Design For Strategic Advantage “By

Andris.A.Zooltners,Prabhakant Shina,&Sally.E.Lorimer/Palgrave macmillan
Websites
www.bnet/ fissibilitébusiness /reprots%.com

www.indianteaindustry.com

www.consumerbuying/Tea reports%.com

www. Marketingrescercher/Gujarat tea/reports% /.com

www.indiancensus.com

www.itreturn/Govtindia/com

Newspaper
(1) Times Of India 2nd may 2008
(2) Economics Times 7th may 2008
(3) Business Standard 11th may 2008

Annexure
COST OF PLANT & MACHINERY
Sr No Particular of Machineries Numbers Cost per Total value
machine
Milk silo (4000l) 1 1,00,000 1,00,000
Cyclone evaporator (450l/hr) 1 25,00,000 25,00,000
Dispenser(100gm /sec) 3 4,00,000 1,20,000
Conveyors 1 8,00,000 8,00,000
Can washer(300 cans per hr) 1 30,000 30,000
Sealing machine 2 80,000 1,60,000
Tool, jigs, fixture etc

45
 Thermometer with RH meter 3 200 600
Spectrometer 2 3000 6000
Venire caliper (electronic) 2 1200 2400
Gauge meter 2 450 1800
microscopes 3 1800 5400
Total + 30% taxes Rs 4703660
,insurance, etc

DEPRECIATION CALCULATION
Depreciation actual cost depreciation depreciation depreciation
year 1 year 2 year 3
building/plant 27000000 800000 720000 648000
machinery 500000 150000 52500 44625
tools/ furniture 200000 120000 84000 58800
computer 300000 75000 56250 42100
total 28000000 1145000 912750 793525

INTEREST CALCULATION
Particulars Percentage Yearly
Interest on term loan @18% 1500000
Interest on Working Capital @18% nil
loan
Interest on other Deposits, As applicable nil
if Any
Total 1500000

Inflation trend to forecast expected sales and future prices of Raw materials and utilities

46
47