Professional Documents
Culture Documents
“The Revolutionary”
Rahul Chandalia
9820079332
Chandalia_rahul87@hotmail.com
Welingkar Institute of Management
AGRO Industries are considered an extended arm of agriculture but in India they have not received as much attention as agriculture.
While agriculture contributes about 25 per cent of India's GDP the value added by the processing industry is only 8 per cent of total
food production. Some estimates suggest that in developed countries, up to 14 per cent of the total work force is engaged in agro-
processing sector directly or indirectly.
However, in India, only about 3 per cent of the work force finds employment in this sector revealing its underdeveloped state and vast
untapped potential for employment. Properly developed, agro-processing sector can make India a major player at the global level for
marketing and supply of processed food, feed and a wide range of other plant and animal products.
However, the private sector is yet to realize the full potential of agro industries. The global market is enormous for sugar, coffee, tea
and processed agricultural foods. Only with mass production aided by modern technology and intensive marketing can the domestic
market as well as the export market be exploited to the fullest extent.
Even before exploring the opportunities abroad, one has to look within the country. The size of the Indian food market is Rs. 350,000
crores. An average Indian spends around 53 per cent of his/her income on food. The domestic market for processed foods is not only
huge but is growing fast in tandem with the economy.
In order to capture the higher end of the local market and get a fair share of the export market, what is required is large scale
investment and adoption of the latest technologies supported by intensive marketing efforts. The increasing environmental concerns
will give further stimulus to agro based industries.
Processed foods
Agro industries help in processing agricultural products such as field crops, tree crops, livestock and fisheries and converting them to
edible and other usable forms. They produce both edible and non-edible things. However, edible products otherwise known as
processed foods form a predominant segment. The levels of processing and manufacturing can be classified into three groups, namely
manual, mechanical and chemical or a combination thereof. In choosing the process, the main considerations are the nature of the raw
material, technology of processing, and packing.
The volume of production depends not only on the capital investments and machine capacity but also on the ability to market them in
the domestic market and abroad.
In view of the fact that the development of agro industries can help stabilize and make agriculture more lucrative and create
employment both at the production and marketing stages, commercial banks will have to meet their financial requirements without
hassles.
The Cold Chain Facility
It is estimated that about 30% to 40% of India’s fresh fruit and vegetables deteriorates due to lack of “appropriate” Cold Chain
infrastructure. This wastage is estimated to a value loss of approx. Rs. 50,000 crore per annum. India, though positioned as the largest
producer of fresh fruits and the second largest of vegetables in the World, the export of fruits from India is just 0.1% of the total
production and that of vegetables is only 0.5%.
Collection of fresh produce in small quantities from remote and scattered small farms remains a logistic nightmare. Transportation is
generally always in open body trucks. Though efforts are made to transport fresh produce at night to avoid direct exposure to SUN, the
ambient temperatures during summer remain too high resulting in deterioration and huge value loss.
The Key to maintaining freshness and high quality in horticulture crops is to start cooling as quickly after harvest and keep it cool
while collection, transportation, packing, storage ………….… till consumption.
It is an integrated supply chain system in which perishable goods are properly handled and stored under appropriate temperature and
humidity conditions for maintaining Quality in term of Freshness, Taste, Appearance, Hygiene and Nutritive value.
Why the products?
Green Peas
India is one of the largest producers of dry pea in the world and stand at the 4th place in the list of major dry pea producers. The Indian
production contributes to around 7% in the world’s total produce with the production figures of 800000 metric tons. Uttar Pradesh is
the major field pea producing state in India producing about 60% of the country’s produce. The other major pea producing states in
India are
• Uttar Pradesh
• Madhya Pradesh
• Bihar
• Punjab
• Himachal Pradesh
The demand is high as well as increasing than its supply. The market is untapped due to the technological and specialized knowledge
considerations.
French Fries
It’s a modern product. There are no known players in the market. It has extreme growth & export potential. The demand is higher than
the supply.
Background about the existing Demand, Production & Consumption in India
Mission Statement
Vision Statement
Our Aim
To offer good quality product at affordable prices and to establish and create a national brand.
Current Strategy
Green Peas are a natural produce with the harvest season being the period from November – January (winter season). As peas
are seasonal in production once the peas are purchased by the company, the company starts processing and potato is purchased
all round the year and immediately subject it to processing then cold storage and distribution takes place.
Emphasis is put on the establishment of new agro-industrial plants in the production catchments to minimize transport cost,
make use lower cost land and more abundant water supply, create employment opportunity in the rural sector and utilize
process waste and by-products for feed, irrigation and manure.
The company sources these from the farmers with a 100% buying guarantee.
The company aims to provide the best price to the farmers and helps them with advance technology and loan for production of
vegetable at favorable rate of interest.
Employment opportunities are provided to the rural people and it will help in overall development of the area.
To establish oneself as a reliable and efficient local player and expand thereon.
Authorized Dealers
Capacity: 1 ton/hr.
Process Flow
Green Peas
Controlled Infeed
Pre Cleaning
Washing
Preparation
Blanching
Cooling
Inspection
Freezing IQF
Packaging
French Fries
Control Feed
Peeling
Inspection
Cutting
Nubbin/Sliver Removal
Sorting Inspection
Blanching
Cooling
Blanching
Pre Drying
Frying
Pre Cooling
IQF (-20ºC)
Bulk Packaging
-20ºC Store
Organizational Structure
Sole Proprietor
20 employees
5 White Collared
Land 5000000
2 Acres
Land
development
charges 12000000
65 x 65 x 15 Ft
Processing Equipment 3500000
Generator, Back – up
Storage Equipment 1,400,000
Rack Storage
52,400,000
Part III: Market Feasibility
PEST
Political
Our products fall within the food category under the FDA – standard problems, shelf life, fat contents, etc for french fries
Economical
New tax
Social
Many are reaching an older age in life they are becoming more concerned with increasing their longevity
In the Indian cuisine it has traditionally been used as a symbol of rich food [pulavs & biryanis]
Technological
Strengths
Acceptable by vegetarians as well as non-vegetarians, suits the Indian taste buds, available in almost all the cuisines
Natural product
Contract sale
Weakness
The society’s mind set is that french fries are not very healthy as they have high fat content
Disturbance in the production cycle due to the unpredictable climate conditions of India
Opportunities
Untapped market
Nationwide distribution
Threats
STPD
Segmentation
Targeting
For French fries All age-groups, especially people with low cholesterol problems & the young crowd
Positioning
For Peas Fast moving, everyday food priced lower than the market price
Differentiation
For peas Nutritious value, suits the Indian taste buds, economic balance maintained through annual availability at a standard cost.
For French fries Low fat content around 22-25 gms and it suits the Indian taste buds, fast pick-up & filling, ready availability.
Porter’s 5 Force Model
This is because it is an untapped market in its sense. There are not many players in the peas category. The demand is high but there
are hardly any suppliers in the market. This can also be due to the long cold chain to be maintained & three months production. It is
untapped even due to the technological and specialized knowledge considerations.
Our bargaining power is high as there are no/less substitutes available in the market which the customer can switch to. The demand
for the product is ever increasing but the supply doesn’t match the same.
The market is untapped and the demand for the same is very high. Therefore, with low supply & high demand the bargaining power
of customer’s declines as they don’t have much option but to go for the available products in the market.
Threats of
New
Entrants-
Industry
Bargaining Competitor Bargaining
s
Power of Power of
1.Safal
Suppliers - Customers
2.Nature
High Fresh 3.Al
-Low
Threat of
Substitutes
– Nil/Low
5. Industry competitors
There are a few industry competitors for peas as Safal, Nature Fresh, Al Kabir. Al kabir being an international brand is quite costly
thus having low sales volume. Safal & Nature Fresh are the existing brands but as we are selling to authorize dealers, these
competitors would not affect our business on a high scale. Only when we plan to expand & build our own brand they can become a
threat to our business.
Distribution Model
Producers [Farmers]
Institutions [Consumers]
SUNDRY CREDITORS
UNSECURED LOAN & DEPOSITS 50,000,000.00
LOANS & ADVANCES 1,500,000.00
Future
Expansion of plant
Forward & Backward integration
Establishment of a brand
Exports
Frozen line with products like frozen samosa, frozen parathas, frozen spring rolls, frozen hara bhara kababs
Readymade food products which will be available in super markets in weekly section like sandwiches, salads, vegetable
rolls, etc.
References
2. http://www.calorie-count.com/calories/item/21138.html
3. http://www.indiainbusiness.nic.in/industry-infrastructure/industrial-sectors/food-process.htm
4. http://finance.indiamart.com/markets/commodity/peas.html
5. http://economictimes.indiatimes.com/articleshow/msid-3563607,flstry-1.cms