BUSINESS PLAN

The ventureName Vara Lakshmi ltd

Executive Summary Vara-Lakshmi pvt ltd buys Rice grown in Brahamahavr and other villages of Udupi, Powders it refines it and packages it for supplying it to retail sector all over Karnataka. We will expand production capacity from 72000/100kg bags per year .Our rice powder stand out from that of the competitors we prepare the top five percent, in terms of quality standards, of all rice powder on the market. Our customers seek this product as it provides them with a point of differentiation. We predict growth of thirty percent in the first year. We have positive indicators from current retailers that the additional amount of rice packets will be sold. Our keys to success are: Establishing and maintaining working relationships and contractual agreements with retailers. Installing the new facility to maximize production within months of operation.In the use of improved technology in the new facility. Effectively communicating to current and potential customers, through targeted efforts, our position as a differentiated provider of the highest quality rice powder in Karnataka. Objectives The objectives of VL Pvt ltd Increase production and sale from72,000/100kg bag per year to approximately 100,000/100kg bags per year in the first year of operation at the proposed facility and reach maximum capacity of 120,000/100kg bags per year by three year. Increase sales through all round operation. Establish strategic relationships with 10-15 various major distributors in Karnataka.

Increase gross margins from fifteen percent (15%) to seventeen percent (17%) in the next three years.

Mission VL pvt Ltd seeks to serve rice powder users by exceeding minimum acceptable quality standards and by providing the highest quality product at the lowest possible price. We value our relationships with current and future customers and hope to communicate our appreciation to them through our outstanding, guaranteed product quality, personal service, and efficient delivery. Our commitment to our customers and state will be reflected through honest and responsible business. Company Ownership VL Pvt Ltd is a private, sector owned by VL group which is under Indian Partnership act of 1932

Company Locations and Facilities Our company has a Head Office in Bangalore in majestic. And plant in Udupi taluk and there is constant transportation facility and road as well .The plant is built and can manage up to 150 to 200 employees. Scope for future upgradation and also expansion is inbuilt. Products and services VL Pvt ltd deal exclusively in rice powder grown in the villages of Udupi to name few Brahamahavr Saibarakatte, Kokkarane , Halady , Kooradi, Mandarti etc.Rice is purchased directly from growers and are de-husked ,cleared, powdered and packaged into 100kg bags the plant. The final product is suitable for sale and export. Competitive Comparison In order to differentiate our product, other rice powder from the product offering of competitors, our all packages are guaranteed fresh ,cleared, well packed and are shipped within seven days of preparation .We prepare above

industry standard .In addition, all of the farms from which VL Ltd purchase rice are environmentally sound farming practices and avoid the use of pesticides and chemicals in crop production. There are approximately 4 competitors who offer a product similar to ours. Our research indicates that with the additional capacity we would become one of the top four, in terms of quantity, providers. We have the advantage of established distribution channels and reputation. In addition, improvements to our marketing efforts will further separate us from the larger market and from our close competitors. Sales Literature We currently work with 2 trucks who handle our transport from village to town form there are various distribution channels, for internal sales, each year. Sales to this point have been handled through personal selling. Additional sales literature will include a website, direct mail to specialty roasters and retailers, and print advertising in several trade publications, a monthly publication which targets business dealing with issues relevant to the rice industry. Sourcing Both the existing and the proposed facilities are ideally located in Brahamavar, in the state of Karnataka. Our plant is the one of the largest plant in Karnataka for rice powder and rice produced in the region are of the highest quality. With additional financing, we would be able to buy larger volumes at lower prices. We now buy from 6 or more of six private growers or grower cooperatives. Contracts are secured six months in advance of harvest. Technology and Future plans Improvements in technology will include the use of partially automated selecting machines which will allow for increased production capacity with a lower machine-to-operator ratio than we currently employ. Additional storage capabilities will decrease shipping charges and will reduce the need for permanent shipping employees by thirty-five percent. High-technology information system upgrades will improve all aspects of business, especially

inventory control, tracking of transport, and communication with clients retailers. Establishing office in Bangalore for quarry and suggestion etc.

Market Segmentation The market is basically divided in north zone and south zone in Karnataka state. In north zone there is high scope since rice consumption is more and south zone less. Plus market is usually targeted to middle and lower end group at affordable prizes. City, town, village, shopping bazaar to small general store our product is made available through our distribution channel and hence market will remain up-to-date with product. As we move to maximum capacity we will plan to more aggressively target this. We anticipate that this effort will begin approximately 2 years into operation of the new facility. Industry Analysis Rice has been a growing industry for the past five years. The most notable growth has been in the Udupi village segment. Where sales have increased almost one-hundred percent and the market price has nearly doubled. Already 4 to 5 companies are engaged in similar sector. There is a constant struggle within this market to produce the best rice powder packets and also some distribution problem. We are planning to cover up these defects and enter in to this industry which is increasing in small scale. But got scope to improve by product differentiation and some aggressive small scale promotion through adds. Hence market is in small level and our industry will be placing itself in respected position . Competition and Buying Patterns The purchase decision for our customer is based on trust in our process and packet selection. We have establishing relationships with our customers which extend beyond that of the buyer/seller. The quality label means that the product has been chosen and prepared with the highest quality standards in mind. Our product is at least 9 percent lower then other price of

competitors. Our customers are willing to pay more for our product because they need good packed product at good price and also quality. This is the result of their success in the marketplace with our product. Main Competitors There are very few competitors in market. Mainly dominated by Asha and some very small scale sector. Since there is less competitors scope is more for us to exploit the market and get more again out of our product. Strategy and Implementation Summary We are planning to expand production capabilities in order to fulfill the requests of retailers and wholesalers with whom we currently deal for larger orders which we are unable to currently fulfill. In addition we seeks to establish additional contracts with retailers and wholesalers from other state also in near future and expand its business to Tamilnadu and since its close to plant and also increase the volume of rice packets sold. We intend to first maximize quantity in existing channels and second, establish additional accounts through targeted marketing efforts. The unique aspects of our products include superior product selection and preparation, quality assurance, and efficient distribution. These are things we have done since we started doing business. The tactics we will use to communicate these strengths include, personal selling, targeted print advertising, and improved communication capabilities via information system improvements and a sophisticated website. Part of the personal selling will include invitations to retailers and wholesalers to visit our facilities, at our expense. Marketing Strategy VL Pvt ltd. marketing strategy will include the use of targeted print media advertising and direct selling. We will capitalize on existing relationships with retailers. We have positioning ourselves as a differentiated provider of the highest quality rice packet dealers. The primary goal of all marketing efforts will be to communicate this to existing and potential customers.

Pricing Strategy Good quality product great packing and affordable price to customers.. and also our wholesalers .Currently in market out rice packet is going to be introduced at price tag of 20rs around 9%less then other competitors Promotion Strategy Relationship is the key to success in the business. Maintaining good relation with retailers and wholesalers. Personal selling will remain our most important means of promotion.. In addition to personal selling we have identified several specialty publications within which print advertisements will run. Direct mail, in the form of personal letters will also be used to communicate with existing and potential clients. Paper ads and banners in shop in local language is basic promotion idea Distribution Strategy Got 2 trucks from plant till Anekal main facility from there various vehicles are arranged based on order. And through agents retailers is made sure rice product is available very where needed Sales Strategy Meeting demands of customers maintaining good relation. Great rice quality product, attractive packing and labeling of great industrial standard product, plus. Some local languages in packet. Financial Plan We want to finance growth through a combination of long-term debt and cash flow. Purchase of the larger facility and equipment will require approximately eighty percent debt financing. Additional technology will be primarily financed with cash-flow. Inventory turnover must remain at or above four or us run the risk of backing up orders and jeopardizing our freshness guarantees. No credit facility will be given for retailers or others till next one year of business. In addition, we must achieve gross margins hold operating costs no more than sales. Paying tax separate provision is created

All the accounts are computerized and maintained in our Bangalore office as per schedule and updated Key Financial Indicators The most important factor to VL pvt ltd anticipated growth is the procurement of necessary financing. The size of the orders currently requested by wholesalers and retailers are larger than what can be produced given our present plant capacity. The following chart shows changes in key financial indicators: sales, gross margin, operating expenses, collection days, and inventory turnover. Expected in next 6 years Employment terms Our firm would provide the people with around Rs 100 as their daily wages. CONCLUSION: Villages are the back bone of our country. To Our business plan would help the villagers to lead an independent life and to overcome the effect of globalization on them. Villagers are most hard working people who can contribute more towards our national income, so these people must not be neglected they are our important part of the society. Anekal district is also known as rice kanaja. But the villagers are still are unaware of the modern methods of farming. They are not aVLe to satisfied income and a peaceful life. They are unaware of the saving habits so to conclude we would like these villagers to inculcate the habit of saving among them and we would see that each one would get proper employment which is required for them.