OVERVIEW OF THE BUSINESS

Our business is SCHOOL CANTEEN at ST. Xaviers School located in Andheri west
sv road. We have so far only one location of this business but in future we think of
starting one more location of this business. As our business is of providing food and it is
granted in by the school management as far as its legality is concern. The founder of this
business are Mitul Pathak, Pooja Mandal, Aftab Shaikh, Shivam Agarwal and Moyena
Parikh. The qualification of these partners is MASTERS. We divide our share by equal
participation. We, the partners have invested 10 lakh in this business. So we have starting
capital of

Rs.10,00,000. We are planning to start this business from next month.

Basically our main food is TIFFIN, and in tiffin the menu will be changed day by day.
Our main objective is to provide hygienic and hot food, changing menu of the food day
by day, providing better service than other. We are going to operate in canteen industry. It
is a growing industry. Canteen Industry facing some challenges viz. economical changes,
political changes, technological changes, environmental changes, etc. We have a plan
about getting Raw Material. Right Now we get it from Khar and Andheri market which is
somewhat costly for us and it affect the finished product of our business. So what well
buy the raw material directly form the farmer, so that we can reduce our cost and by that
we can increase our net sales, which ultimately result in a great profit.

ABOUT THE PROJECT

Here well start a canteen business in ST. XAVIER SCHOOL. The reason for planning this
business is that there are many teaching staffs, non-teaching staffs and students in the school
working and studying. Thus we have assumed that well get sales by them.

Actual product
We will provide Tiffin that will include:
VADA PAV RS.15

POHA RS.30

SAMOSA PAV RS.15

OATS WITH MILK RS.40

CHOCOLATE SANDWICH-RS.20

FRENCH FRIES(SWEET POTATO)-25

VEG. SANDWICH-RS.30

BOWL OF MIX FRUIT WITH FRESH

IDLI-RS.30

CREAM-40

BISCUITS @ MRP
TEA RS.8
COFFEE RS.8
MILK RS.20 ONE GLASS
MIX VEG PARATHA- RS.16
JUICES RS.40
SABUDANA VADA + CURD- RS.40
PANEER ROLL RS.30
LASSI RS.30
IDLI & DHOKLA RS.20

Extra product
1. Chocolates on demand
2. Pickle on demand (soul pickle only as it is made up in olive oil which is healthy)
3. Tomato ketchup on demand.

Target Customers
Here our target customers are students teachers non teaching staffs and sometimes parents also.

TARGET MARKET
Well serve this business in the geographical area of the ST. XAVIER SCHOOL. It is urban area
where urban people live. The population density of this area is more than 6000. There are many
other business in this area. Our target customers are not only the students but also teachers and
non teaching staffs and parents also sometimes who do not bring Tiffin with them or rather dont
get time for healthy cooking.
The general observable of the customer are:
Age: 8 to 60
Income: 7000 to 45,000
Occupation: Teachers, Non- Teaching staffs, Students and sometimes students parents.
Marital Status: Both married & Unmarried
Education: Either 10th or B.ed or more than that.
Spending Ability: Rs. 30/ day or more for one dish or two dish.
The factors that most influences the customers purchasing decision is price, service and quality.
The approximate size of our target customers is 350/ day first year. The size of our customers
will be 400 /day and the price per dish will be Rs. 25 per dish and third year the size will be
550/day but the price will be the same.

THE COMPETITION
Competition type (specific business)
1. Small vendor of idli or dosa.
2. Vendor of snacks or fast food.
3. Canteen of tea or coffee.
4. Small restaurant
But students are not allowed to step out of school during break hours. So they have only two
option that is either their Tiffin or Canteen. But Teachers or non teaching staffs can go to the
outside vendors.

Strength of specific business

1. Price is low
2. Catering more and more customers
3. This businesses are old than us.

Weaknesses of specific business

1. Sitting arrangement facilities is not better
2. Sanitation problems
3. Equipment problems
4. Place problem
5. Quality is not good

Why will your customers choose your product over your competitor?
1. By providing hot and fresh food.
2. By providing sitting arrangement facilities.
3. By crating colours in and around the canteen.
4. Water facilities both cold and hot.
5. We are providing meal in good quality as well as in affordable price.

MARKET PLAN AND SALES PLAN

Well go to positioning our canteen in the school as provider of good service, good quality, and
variety in daily food. We want customer to think of our canteen whenever they hear about service
and quality. We have a company tagline that low price, healthy food.
The business place is school area, so we have to do marketing by the following way:
By whatsapp highlighting the new concept.
By parents teacher meeting association.
By pamphlets which include all kind of price of the product, weekly menu, name of the canteen,
etc.
We dont have to spend anything on marketing. As far as our business is concern, we have to
focus on the students, teachers, non teaching staffs and parents of the school area, so for that we
need not give any advertisement on TV or in any newspaper. So what we have done is that we
advertise our business by the above ways mentioned. In other sense, we directly advertise our
product to the customers by that. And as per getting response well innovate our marketing by
providing some promotion schemes & offers.

FUTURE DEVELOPMENT

Canteens first goal is to achieve the highest amount of response in short period of time by
providing good quality. After one year if we will get great amount of response, we plan to
establish a new venture of canteen chain in other school in Mumbai. In future we want to
develop our business by providing them a great satisfaction with their food, and by providing
them all kind of services and facility related with their food and their lunch time which can be
possible, so that there is an image will print in their mind that whenever they talk about quality,
service, or facility, they remember name of our Canteen, by which we can attract many
customers as well as can satisfy them and by that we can expand our target market.

Milestone

Market Expansion
Customer Satisfaction
Increasing response
Quality Standard

Level to achieve in future

At least five canteens in Mumbai schools.

Product diversification and process modification.
Introduction of new products

FINANCIAL PLAN
COST OF THE PROJECT
The cost of the project has been estimated at total Rs.10, 00,000.

Sr. No
1
2
3
4

Particular
Building on Rent (deposit)
Plant & machinery
Other Fixed Asset
Preliminary & pre-operative Expenses
Total

Rupees
50,000
62,400
46,500
12,000
170900

Total investment is of Rs 6, 00,000 and the cost of the project is of Rs. 170900. So we have
reserve of Rs. 429100.

MARKETING BUDGET
Sr. No.
1
2

Particular
Banner & Board
Pamphlets
Total

Rs.
2,000
5,000
7,000

SALES PROJECTION
Year 1
Customers
350 per day
2450 per week
10500 per month
126000 per year

Rs./Dish
30
30
30
30

Total Rs.
10500
73500
315000
3780000

MEANS OF FINANCE

The cost of the project as stated above is suggested to be met through the sources:
Sr. No
1

Particular
Promoters Contribution
Total

Rupees
10,00,000
10,00,000

PRELIMINARY & PRE-OPERATIVE EXPENSES

Sr. No
1
2
3
4
5
6

Particular
Legal Expenses, Scrutiny Fees
Project Report Preparation
Establishment Expenses
Electrification & Water Deposits
Inauguration Expenses & Other Expenses
Telephone Deposit
Total

Rupees
1,000
500
500
3,000
5,000
2,000
12,000

MANPOWER REQUIREMENTS
Year 1

(At 90% capacity utilization)

(Total Amount to be paid by way of Salary & Wages)

Sr. No.
1
2

Particular
Supervisor
Skilled Workers (Cook)

Nos.
1
2

Salary/ month
4,500
5,000

Yearly Rs.
54,000
1,20,000

3
4
5

Semi-skilled Workers
Unskilled Workers
Accountant Cum Clerk
SUB Total
Add: benefits@30%
Grand Total

5
5
1
14

3,500
2,000
4,500
46,500

2,10,000
1,20,000
54,000
5,58,000
1,67,400
7,25,400

UTILITIES AND OVERHEAD COSTS

Year 1

(at 90% capacity utilization)

Sr. No.
1
2
3
4

Particular
Electricity
Fuel
Water
Transportation with wages
Total

Monthly Rs.
5,000
10,400
200
1000
16,600

Yearly Rs.
60,000
1,24,800
2,400
12,000
1,99,200

ADMINISTRATIVE EXPENSES
Year 1
(at 90% capacity utilization)
Sr. No.
1
2
3
4

Particular
Stationary & Printing
Telephone, Fax
Legal Charges
Miscellaneous
Total

Monthly Rs.
2,000
500
500
500
3,500

Yearly Rs.
24,000
6,000
6,000
6,000
42,000

ANALYSIS OF BREAKEVEN POINT (BEP)

(A)

Sales Realization

(B)

Variable Costs

Sr. No
1
2
3

Particular
Raw Material
Power, Fuel, Water
Wages
Total

Rs. 37,80,000

Monthly Rs.
1,44,580
15,600
500
1,60,680

(C) Fixed Costs

Sr. No
1
2
3
4
5

Particular
Salaries
Depreciation
Administrative Expenses
Repair & Maintenance
Rent, taxes, insurance
Total

(D)

Yearly Rupees
6,24,000
23,310
42,000
2,000
2,04,000
8,95,310

Contribution

Contribution = Sales Variable Cost

= 37,80,000 19, 27,000
= 18,53,000
Therefore BEP = (Fixed Cost /Contribution) * 100
= (8, 95,310 /1853,000) * 100
=48%
BEP = Fixed Cost / (S.P-V.C) per dish,
8, 95,310 / 14.70 = 60905 rs.

Yearly Rupees
17,34,000
1,87,200
6,000
19,27,000

RETURN ON INVESTMENT
ROI= Net Profit / Investment
= 2,50,000/ 10,00,000 *100
= 25%
TRADING ACCOUNT FOR THE YEAR ENDED 31st MARCH 2016

PROFIT & LOSS ACCOUNT

BALANCE SHEET

ANNEXURE
Indicative list of expenses
Sr. No.

ITEM

(Rs.)

1
2
3
4
5
6
7
8

FURNITURE (CHAIRS/TABLES)
FRIDGE 258L
AIR COOLER
IDLI STEAMER
AIR FRYER (2 NOS.)
GAS CONNECTION
STOVE
OVEN 20L

1,50,000
35,000
30,000
2,000
20,000
5,000
5,000
5,000
2,52,000

TOTAL

ITEM

(Rs.)

ELECTRIC TANDOOR

10

UTENSILS

11

EXHAUST CHIMNEY

10,000

12

FIRE EXTINGUISHER

3,000

13

INSECT REPPELER

3,000

14

GARBAGE BIN

1,000

15

MISC. EXPENSES

12,000

TOTAL

44,000

Rate of Vegetables
Vegetables
Rs./kg
Bean Pods
28
Brinjal
20
Cabbage
16
Carrot
20
Cauliflower
32
Chilly(green)
20
Coriander
40
Cucumber
20
Fenugreek
40
Garlic
30
Ginger
100
Green pea
50
Ladyfinger
25
Onion
16
Peas
50
Potato
10
Radish
20
Spinach
20
Tomato
15
Vetch
20

10,000
5,000

AN

Other Items Rate

Buttermilk
10
Curd
25
Ghee
200
Rice
30
Mug Pulse
40
Tovar pulse
30
Besan
40
Salt
4
Sugar
22
Wheat Flour
15
Red chilly
10
Mustard
40
Green Termic
60
Edible Oil
50
Hing
20

ANNEXURE 3
Sr.No.

Particular

1
2

Wheat Flour
Tuver Dal

Quantity
Required
for 1 day
20 Kg
15 Kg

Cost for 1
Day (Rs.)
300
520

Quantity
Required
for a week
140 Kg
135 Kg

Cost for a
week (Rs.)
2,100
3,640

3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24

Mustard
Garam Masala
Green Chilly
Coriander
Garlic
Ginger
Buttermilk
Curd
Ghee
Bason
Salt
Sugar
Red Chilly
Edible Oil
Hing
Rice
Cucumber
Tomato
Gur
Lemon
Onion
Potato
Total

0.7 Kg
0.42 Kg
0.7 Kg
1.4 Kg
2.2 Kg
0.7 Kg
10(liter.)
7 Kg
7 Kg
2.8 Kg
1.4 Kg
2.8 Kg
3.5 Kg
15 (liter.)
1.5 tin
11.5 Kg
2.8 Kg
5 Kg
2 Kg
0.7 Kg
2.8 kg
1.4 Kg

30
65
15
46
26
72
100
150
1072
115
15
58
235
1080
22
515
58
140
50
15
46
22
4,864

5 Kg
3 Kg
5 Kg
10 Kg
16 Kg
5 Kg
70 (liter.)
50 Kg
50 Kg
20 Kg
10 Kg
20 Kg
25 Kg
105 (liter.)
10 tin
80 Kg
20 Kg
35 Kg
14 Kg
5 Kg
20 Kg
10 Kg

210
455
105
322
182
504
700
1,050
7,504
805
105
406
1,645
7,560
154
3,605
406
980
350
105
322
154
34,048

The item in the following table require only one day in a week
Sr. No.
1
2
3
4

Particular
Cabbage
Bean Pod
Brinjal
Cauliflower

Quantity Required for 1 day

5 Kg
5 Kg
5 Kg
5 Kg

Cost for 1 Day (Rs.)

80
120
100
140

5
6
7
8

Ladyfinger
Peas
Spinach
Vetch
Total

5 Kg
5 Kg
5 Kg
5 Kg

110
235
85
100
1,055