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Papad co operative project plan group unknown
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Papad co operative project plan group unknown



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  • 2. Executive Summary 2  Introduction  Purpose & Objectives  Business Plan  Manufacturing Process overview  Struture of Co-operative  Technical Analysis  Marketing Analysis  Porter‘s Five Forces  Financial information  Conclusion Kurkur Papad Cooperative Society
  • 3. Introduction 3  Co-operative Name: Kurkur Papad Cooperative Society  Location: Jhajjar, Gujarat  Year of Formation: 2014-15  No. of Members: 80 Women  Capacity in a year: 180 Kg / Member  Share in Co-operative: Rs. 1200 / Member  Total Equity of its Members: Rs. 96,000  Bank Loan @12%: Rs. 5,64,000  Structure of Co-operative: Two Tier (Village and Dist Kurkur Papad Cooperative Society
  • 4. PURPOSE & OBJECTIVES 4  Ensure regular market and remunerative prices  Increase in household income  Promote local food and livelihood security  Promote home value-addition through processing of floor  Invest cooperative income from value-addition and diversification to improve living standards of the  local community by establishing health care, education, credit and transport infrastructure Kurkur Papad Cooperative Society
  • 5. Business Plan 5  Forming a Co-operative Society with women who are poor and wanted to do something for their livelihoods generation  Co-operative Society with two tier structure: Village level and District level  Dist. Union will provide raw materials to village level  District Union is also responsible for packaging and marketing of produce  If Co-operative Society will make the profit, it will be divided in its active members as patronage refund Kurkur Papad Cooperative Society
  • 6. Manufacturing Process overview 6 Kurkur Papad Cooperative Society
  • 7. Struture of Co-operative 7 Kurkur Papad Cooperative Society has three tier structures: Dist. Co-operative Dist. Co-operative Union Union Vill:1 Vill:1 Vill:2 Vill:2 Vill:3 Vill:3 Vill:4 Vill:4 Vill:5 Vill:5 Vill:6 Vill:6 Structure – Organization Level Kurkur Papad Cooperative Society Vill:7 Vill:7 Vill:8 Vill:8
  • 8. Technical Analysis 8  Easy Availability of Raw material.  Scattered suppliers across Himmatnagar, Indore, Dahod, Rajkot, low switching costs between suppliers and low concentration of sellers.  Suitable Agro-climatic availability for sun drying component of the manufacturing process; 320 days of bright sunlight in a year.  Easy availability of capital through member contribution, government subsidies of up to 25% on a loan amount of 10lac and above for setting up of business unit.  Strong infrastructural support in the state of Gujarat Kurkur Papad Cooperative Society
  • 9. Marketing Analysis 9  Large number of buyers and sellers  Large number of competitors and relative size, each vying for the share in total value pie.  Low Entry Barriers, less barriers in raising of capital, low uncertainty in the industry  Quality & Quantity of raw materials assured  Increasing demand to the extent that the industry is unable to meet it through its current capacity  Latent demand for Handmade and Semi handmade Papad  Transparency in quality through appropriate grading criteria and fairness in quantity measurement Kurkur Papad Cooperative Society
  • 10. Porter’s Five Forces Model 10 Threat of New Entrants Threat of New Entrants Low Entry Barriers Low Entry Barriers  Economies of Scale  Economies of Scale  Access to distribution channels  Access to distribution channels  Cost Disadvantages other than Size Related  Cost Disadvantages other than Size Related Moderate Reactions from Competitors Moderate Reactions from Competitors  Resources of existing participants  Resources of existing participants High Supplier Power High Supplier Power Moderate Buyer Power Moderate Buyer Power  Profitability of buyers  Profitability of buyers  Switching costs  Switching costs  Availability of  Availability of Information Information Large number of competitors in the market Local producers, Lijjat, Bikajiwala, MDH, Shakti Bhog          Handmade Papad as substitute  Handmade Papad as substitute  No complements  No complements Kurkur Papad Cooperative Society Product differentiation Product differentiation Information available to buyers Information available to buyers Switching costs Switching costs Proportion of revenue Proportion of revenue represented by sales represented by sales
  • 11. Financial Analysis 11 1. Total number of members in co-operative are 80 women who are contributing Rs. 1200 per member 2. Total equity of members in co-operative is Rs. 96,000 3. Kurkur Papad Cooperative Society is financing 20% by member equity and 80% by bank loan. 4. Kurkur Papad Cooperative Society invest in fixed assets Rs. 60,000 and other start-up expenses is Rs. 6,00,000 5. So, Total required of fund is Rs. 6,60,000 which will be financing by its members and by bank loan where Gujarat government provided 25% subsidy. 6. In first year, total cash inflow goes on Rs. 13,01,760 and cash outflow on Rs. 10,22,080 7. Net Present Value at the discount rate of 15% of the project is (-40064) and IRR is Kurkur Papad Cooperative Society
  • 12. Financial Analysis……Cont… 12  Kurkur Papad Cooperative Society are generating total revenue in 1 st year Rs.        13,16,060. After deducting interest and taxes , Kurkur Papad Cooperative Society have net profit of Rs. 2,44,864 in 1st year. In one quintal raw materials, Co-operative is producing Papad of 50 kg, Khakra of 20 kg, Chaurafali & Mathia 10 kg and Pickles 8 kg with the selling price respectively Rs. 100,100,100 and 130 per Kg. So, average total price of produce in quintal is Rs.9040. Whenever average variable cost of one quintal RM Pickles is Rs. 7555 per quintal. Contribution margin is 1485 and contribution ratio is 0.16 Fixed cost of project is Rs. 60,000. So, Break Even Point (BEP) is 3,65,000 approximately which Cooperative will achieve in 3rd year. FINANCIAL ANALYSIS Kurkur Papad Cooperative Society
  • 13. 13  As the demand of home made food in rowing, the food industry faces a positive supply pressure.  This coupled with recent freedom provided by the government would create a favourable environment for the co-operative.  The company is already doing sufficiently well and also took several initiatives for further improvement.  It should try to adopt newer technologies to stay ahead of the competition.  In addition to this, it should constantly look for adding to the value provided to customers.  This requires a dedicated marketing and consumer research activity set.  The company should also work on strengthening its internal operations and try to develop new business models (such as integration). Kurkur Papad Cooperative Society
  • 14. 14