Business Plan -Abinesh Manoharan
M & M Agri Ltd. Chickpeas purchased in SK and sent by rail to BC Shipped from Port of Prince Rupert Collected in Chennai and transported to facility at Zamin Endathur Packaged into 1 KG bags and stored for distribution Distributed to local stores in Chennai and Area The end product is branded as RUCHI and sold in local super markets
Organization Structure Board of Directors - 2 CEO Vice President – Canadian Operations Vice President - Indian Operations Plant Manager Plant Laborers - 3 Driver/ Delivery - 6 Marketing and Business Development Officer - 2 Invoicing and Accounting Person I will be the CEO and Vice president of Canadian operations. I will also be one of the board members along with an outside Director with expertise in food retailing.
Current market conditions Source: http://www.agrifood.info/perspectives/2002/Agbola.html#_Toc11119676 Reduced monsoon rainfall has created greater demand for chickpeas
Target Market – Chennai Chennai and surrounding area have a population of 8.7 million according to a 2011 census
End customer Demographic Women aged between 30-60 Attended minimum high school Majority of them Home makers Influenced by TV Ads, word of mouth Quality is the most important factor while making purchase decisions. Health benefits and Price come next Based on a survey.
Marketing Strategy Store Owners: Profit with other brand products: 5% - 7% Profit with Ruchi chickpeas: 10 – 12% End Customers: TV Ads using leading TV Stars TV Ads will be shown only in Sun TV(leading tamil channel) Social media adsvertising includes ads as well as online coupons
Capital Expenses Item Price Land 10,000 Buildings 200,000 Furniture and Fixtures 4,000 Packaging Machine 3,000 Air Conditioner 5,000 Delivery Trucks 120,000 Other Equipment 6,000 Total $348,000 Bank Debt: $200,000 @11% Interest Equity : $148,000
Base Case Summary 2017 2018 2019 2020 2021 KGs/Day 1,000 1,250 1,438 2017 2018 2019 2020 2021 KGs/Day 1,000 1,250 1,438 1,509 1,585 Revenue 857,750 1,093,631 1,282,829 1,373,910 1,471,458 Net Income (15,039) 13,868 38,043 51,593 65,831 Dividend - 17,043 58,279 66,766
Breakeven Analysis Base Case Breakeven
Risk Factors
Feasibility Base scenario predicts positive net income and break even from year 2. Salary for being the CEO and the net income makes the project very attractive. Abinesh’s Compensation: Year 1 Year 2 Year 3 Year 4 Year 5 $30,000 $30,600 $40,159 $88,819 $95,249
THANK YOU