A Business Plan Presentation for an Organic Fruits and Vegetable Store in Ahmedabad, Gujarat Made In: November 2019

1. Business Plan
Farm Fresh
Organically Yours!
November 2018

2. Farm Fresh
O r g a n i c a l l y Y o u r s !
» ChaudharyVasant
» JainYash
» MehtaTanvi
» Mrudul Manojkumar
» Pandya Priyal
» Revar Shailesh
GroupMembers
2

3. Farm Fresh
O r g a n i c a l l y Y o u r s !
Introduction
3

4. Farm Fresh
O r g a n i c a l l y Y o u r s !
Idea
» Increase popularity of Organic Products that mostly
get exported
» Create awareness about Organic Products
» Operate in a market that has less competition
» Provide superior quality product
» Selling to the Middle Class along with the UpperClass
and Upper Middle Class
» No taxes apply to this product
4

5. Farm Fresh
O r g a n i c a l l y Y o u r s !
» Pesticides: -
• Very harmful for health
• Causes diseased like Cancer
» Chemical Fertilizers: -
• Crops produced have less nutritional value
• Degrades fertility of soil greatly
• Manufacturing and usage results in Air,Water and Land
Pollution
» Increased cost of Production for the Farmers
5
Problem
Importance of Organic Farming
» Health: -
• Does not contain poison
• High nutritional value
» Taste: -
• Food tastes good
• Food lasts longer
» Environment: -
• No usage of pesticides or chemical fertilizers
• No pollution
• Increases fertility of the soil
Disadvantages of Normal Farming

6. Farm Fresh
O r g a n i c a l l y Y o u r s !
» India ranks 9th in terms ofWorld’s
OrganicAgricultural Land and 1st in
terms of total producers.
» India as on March 31, 2018 has 35.6
lakh Hectares under Organic
Certification process out of which
17.8 lakh Hectares is cultivable
area.
» Among all the states, Madhya
Pradesh, Rajasthan and
Maharashtra, the three neighbors
of Gujarat, cover the top 3 portions
and are among the top 5 producers
of organic products.
» The NPOP accreditation program
has been accepted by the
European Commission, USDA and
Switzerland as equivalent to their
country standards.
» Around 17 lakh MT organic
products are produced in India.
» Out of these, 4.6 lakh MT gets
exported.
» Out of these products, cereals and
millets, fruits and vegetables,
which do not get sold here are
exported at decreasing prices.
Opportunity
The opportunity created
6

7. Farm Fresh
O r g a n i c a l l y Y o u r s !
» Extensive Marketing that targets
Upper Class, Upper Middle Class as
well as Middle Class.
» Supply certified products
irrespective of them being
unprocessed or processed.
» Increased health consciousness in
the market resulting in demand for
healthier substitutes.
» Less competition in the market.
» Relaxed marketing strategies
adopted by competitors.
Solution
The solution that our business provides
7

8. Farm Fresh
O r g a n i c a l l y Y o u r s !
» TheirTarget Markets
» Brand Loyalty from Customers
» Current Level of Competition
» Whether prices are negotiable or not?
» Most selling as well as slow moving products
» Technologies required
» Manpower required
» Licenses
» Machineries required
» Whether they reach the customers directly or not?
» Opted method of transporting goods
MarketResearch
Visited nearby Organic Stores and observed the
following points: -
8

9. Farm Fresh
O r g a n i c a l l y Y o u r s !
» As we are producing ourselves, we can charge a
comparatively lower price.
» Due to a possible lower price, we have a bigger target
market.
» Very few competitors in Ahmedabad
» Prices are not negotiable
» Household products that are unprocessed are in high
demand.
» Most competitors act as aggregators while we deal
directly with customers
» No special manpower required
» Transporting goods through cargo is the most opted
for method
9
MarketResearch
Summary

10. Farm Fresh
O r g a n i c a l l y Y o u r s !
» The waste product will be converted into manure and
sold to the farmers.
» Lower prices than the ones provided by sellers that
acquire them through aggregators.
» Shop located where there is a traffic from all three
sections of theTarget Market.
» Providing home delivery to places with people willing
to pay considerably higher prices.
USP
10

11. Farm Fresh
O r g a n i c a l l y Y o u r s !
» Stores in High –Traffic Areas
• The word organic should get the required attention from
the traffic frequenting the place.
» Home Delivery in Posh Areas
• Areas like Sindhubhavan Road, Judges Bungalow Road,
Satellite, Bodakdev, Nikol and K K Nagar have people
willing to pay high prices to have fresh vegetables
delivered to their houses on daily basis.
» Hospitals near the Shop
• Promoting the product near Hospitals will considerably
increase our brand awareness
» Fitness Centers around the Shop
• Fitness Centers have many health conscious people that
can be drawn in with the lure of fresh and healthy food
» Eco-Conscious Individuals
11
TargetMarket
Who do we plan to sell to?

12. Farm Fresh
O r g a n i c a l l y Y o u r s !
» Perishable Products
» Product getting damaged duringTransport
» If the farmer loses his product, the current plan does
not have an alternative source to procure the goods.
» If the buyer cancels a big order, the material bought
cannot be recovered
» If demand increases drastically, we cannot increase the
supply accordingly.
Risk
What are the risks of this business?
12

13. Farm Fresh
O r g a n i c a l l y Y o u r s !
» Shop
• Shop located at a place with heavy footfall.
» Home Delivery
• Home Delivery in specific regions from
• Home Delivery at a discounted rate in the Morning and
Evening
» Hotels/Hospitals/Fitness Centers
• Contract with Hotels, Restaurants, Hospitals and Fitness
Centers
» Online
• Selling through own website
• Selling through online Grocery Stores like Big Basket, etc.
13
DistributionChannel
What methods will we adapt to distribute the product?

14. Farm Fresh
O r g a n i c a l l y Y o u r s !
» Pamphlets in Newspaper
» Exhibitions & Events
» Painting on DeliveryVehicle
» Carry Bags
» Posters outside Gyms and Hospitals
» Awareness Program in Schools and Colleges
» Sponsorships
» Hand Made Posters
» Posters inVegetable Markets (Mandi)
» Balloons
AdvertisingandPromotion
The methods of promotion we plan to adopt
14

15. Farm Fresh
O r g a n i c a l l y Y o u r s !
» Local Retailers and Wholesalers
• Green-o-Bazaar
• Parag Organics
• Asal World
• Others
» Online
• Amazon
• Big Basket
• Groffers
• Others
» NGOs
• Go Green
» Local Farmers
15
Competition
Who are our Competitors?

16. Farm Fresh
O r g a n i c a l l y Y o u r s !
Start-Up Cost
Cost to be incurred before
commencement of the
Business
16

17. Farm Fresh
O r g a n i c a l l y Y o u r s !
» Commercial Structure –
Shop/Office
» Acquisition – Rent
» Rent: ₹30,000 per month
» Area: 252 sq. ft
» Address: Mansi Circle, Satellite
Nearby: -
» Satyam Mall
» Shreema Maternity Nursing Home
» Shalby Hospital
» Ahmedabad Heart Hospital
» Mansi Fruit Centre
» Vadilal Hangout, South Café and 3
other restaurants
» BRTS Corridor
» Hanuman Mandir
» Takshashila Apartments,
Sudarshan Apartments, etc.
Building
17

18. Farm Fresh
O r g a n i c a l l y Y o u r s !
Start-UpCosts
Particulars Cost (₹) Particulars Cost (₹)
Rent Deposit 60,000 Baskets 3,600
License 12,500 Computer + Billing Machine 20,000
Vehicles 2,28,000 Card Swiper 4,500
Telephone 1,500 Water Sprinkler Bottle 40
Second-HandA/C 30,000 Fire Extinguisher 2,000
Interior 40,000 CCTV 3,000
Board & Banners 10,000 Water Filter 2,500
Fans (x2) 2,400 Cold Storage 1,00,000
Weighing Machine 4,000 Packing Machine 1,500
Furniture 1,00,000 Advertisement 4,500
Vegetable Basket 150
Total 6,30,190
18

19. Farm Fresh
O r g a n i c a l l y Y o u r s !
FundRaising
Owners Capital
= 6,48,000/6
= 1,08,000
Owners’ Capital = ₹ 1,08,000 per owner
19

20. Farm Fresh
O r g a n i c a l l y Y o u r s !
Fixed Cost
20
Costs to be incurred per
month irrespective of
Operations

21. Farm Fresh
O r g a n i c a l l y Y o u r s !
FixedCosts
Particulars Cost (₹) Particulars Cost (₹)
Rent 30,000 Owner 70,000
Electricity 10,000 Cleaning Equipment 500
Driver 8,000 Telephone Charges 450
Helper 8,000 Advertisement 2,000
Employees 20,000 Fuel Charges 3440
Depreciation 3,000
Total 1,87,390
21

22. Farm Fresh
O r g a n i c a l l y Y o u r s !
Variable Cost
22
Operating Cost

23. Farm Fresh
O r g a n i c a l l y Y o u r s !
ProductsSold(Vegetables)
Long Shelf Life Short Shelf Life Medium Shelf Life
Potato Bitter gourd Brinjal (Eggplant)
Tomato Corn Bottle gourd
Onion Cucumber Carrot
Chilli Spinach Capsicum
Green Peas Fenugreek Ladies’ Finger (Okro)
Lemon Mint Apple gourd (Indian Squash)
Cauliflower Drumstick
Cluster Beans
Beans
Beetroot
Coriander
23

24. Farm Fresh
O r g a n i c a l l y Y o u r s !
ProductsSold(Fruits)
Short Shelf Life Medium Shelf Life
Banana Pineapple
Guava Pomegranate
Pear Orange
Chikoo Mosambi
Grapes
24

25. Farm Fresh
O r g a n i c a l l y Y o u r s !
ProductsSold(Dairy)
Dairy Products
Milk
Ghee
Buttermilk
Curd
Paneer
Mawa
Coconut Water
25

26. Farm Fresh
O r g a n i c a l l y Y o u r s !
VariableCost(Fruits&Vegetables)
Product
Procuring Cost
(₹/kg)
Sales Price
(₹/kg)
Margin
(₹/kg)
Potato 20 35 15
Tomato 15 30 15
Onions 20 30 10
Carrot 30 60 30
Capsicum 60 120 60
Chilli 40 65 25
Corriander 10 20 10
Lemon 65 120 55
Spinach 15 25 10
Banana (₹/dozen) 40 70 30
Chikoo 25 40 15
Grapes 80 125 45
Orange 35 50 15
26

27. Farm Fresh
O r g a n i c a l l y Y o u r s !
VariableCost(DairyProducts)
Product Procuring Cost
Sales Price
(₹/kg)
Margin
(₹/kg)
Milk 40 70 30
Ghee 700 850 150
Buttermilk 11 15 4
Curd 80 120 40
Paneer 320 350 30
Mawa 110 130 20
Coconut Water 25 40 15
27

28. Farm Fresh
O r g a n i c a l l y Y o u r s !
VariableCost(DairyProducts)
Product Procuring Cost
Sales Price
(₹/kg)
Margin
(₹/kg)
Milk 40 70 30
Ghee 700 850 150
Buttermilk 11 15 4
Curd 80 120 40
Paneer 320 350 30
Mawa 110 130 20
Coconut Water 25 40 15
28

29. Farm Fresh
O r g a n i c a l l y Y o u r s !
Calculationof UnitProduct
Product
Quantity
(kg/Custome
r)
Production
Cost
(₹/kg)
Total Cost
(₹/Combo)
Selling Price
(₹/kg)
Selling Price
(₹/Combo)
Margin
(₹/kg)
Total Margin
(₹/Customer)
Potato 2 20 40 35 70 15 30
Tomato 2 15 30 30 60 15 30
Onions 1 20 20 30 30 10 10
Chilli 0.1 40 4 65 6.5 25 2.5
Corriander 0.2 10 2 20 4 10 2
Lemon 0.1 65 6.5 120 12 55 5.5
Banana 1 40 40 70 70 30 30
Milk 1.5 40 60 70 105 30 45
Total 202.5 357.5 155
29

30. Farm Fresh
O r g a n i c a l l y Y o u r s !
Calculationof Break-EvenPoint
» Fixed Cost = ₹ 1,87,390
» Margin per Unit = ₹ 155
» Target Customer per Month = 1210
» Target Customer per Day = 40.33
» Target Customer per Hour = 2.5 Customers
30

31. Farm Fresh
O r g a n i c a l l y Y o u r s !
MonthlyForecasting
Months No. of Units Sold Profit/Loss Surplus/Deficit in Target
1 1000 Loss -200
2 1100 Loss -100
3 1200 Break - Even 0
4 1350 Profit 150
5 1500 Profit 300
6 1700 Profit 500
7 1750 Profit 550
8 1800 Profit 600
9 1900 Profit 700
10 1900 Profit 700
11 2000 Profit 800
12 2050 Profit 850
31

32. Farm Fresh
O r g a n i c a l l y Y o u r s !
MonthlyProjection
-500
0
500
1000
1500
2000
2500
1 2 3 4 5 6 7 8 9 10 11 12
No. of Units Sold Surplus/Deficit
32

33. Farm Fresh
O r g a n i c a l l y Y o u r s !
P&LProjectionforthe13th Month
Particulars Quantity Rate Total
A Sales Revenue 2100 360 7,56,000
B Variable Cost 2100 205 4,30,500
C Gross Profit = A - B 2100 3,25,500
D Total Fixed Expenses 1,87,319
E
Depreciation (Non-
Cash)
2,890
F
Total Fixed Expenses
(Cash)
1,90,209
G Operating Profit/Loss 1,35,291
H Taxes -
I Net profit/Loss 1,35,291
33

34. Farm Fresh
O r g a n i c a l l y Y o u r s !
Future Plans
34

35. Thank You
Farm Fresh
Organically Yours!