2. Idea origin
Mission and vision
Mission is to segment the market of pure water by providing niche products to
specialized industry sectors who are otherwise not properly serviced by large pure water
suppliers and come out with better cost effective technology so that the price can be
reduced .
And the vision is to provide clean drinking water in the slump so that poor can be cured
from the water diseases. And the proper mechanism should be established with the help
of government so that poor’s can be benefited.
BACKGROUND AND PURPOSE
3. • Current Status
• Capital
• The cost of establishing the plant is between 3LAKHS -
3.5LAKHS
• And cost of establishing the chillier plant is 1.5 lakhs
• It Need 5 men to operate the plant
• It need two delivery van to supply the water
• Business need the plot or the hall of 1000 square feet to
operate its whole activity
• Cost of establishing the submersible pump is 80 thousand
4. Market Analysis
1.There are around 26 players in the bottled water sector.
2. 70% demand is increases in summer season because of increased demand for drinking
water.
Two main segments Retail market
Bulk market
Retail market consists of 0.5 litre, 1.5 litres, 3.1 litre and 5.0 litre capacity bottles.
Bulk market consists of home and office delivers in 5 and 20 gallon JARS.
5. Competition
There is 45% competition from the Bisleri
There is 30% competition from the Aquafina..
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Aquafina kinely Bisleri Qua Himalaya
Series1
6. Start-up Products
The project in the initial
years will supply only JARS in
the market.
The customer also has the
option of getting cold JAR
water in summers.
The company would also
accept corporate and other
functions bulk orders.
DEVELOPMENT AND PRODUCTION
Follow-on Products
1 Litre Bottle
2 Litre Bottle
5 Litre Bottle
0.5 Litres packs
Water Filter equipment
Knowledge Guide Material
7. Research & Development
Research work to develop the technology of recycling the waste water into
safe drinking water in a cheaper way.
Research work in the field of packaging so the other eco-friendly material of
packing water can be developed.
Collaborate with foreign company to develop cheap water filter equipment
which can be sold to the lower segment of the population
Intellectual Property
COPYRIGHT certificate for its NAME and LOGO
ISO-9000 certificate for its production process.
6-SIGMA certificate for good services to the customer.
8. MARKETING PLAN
The Markets: The market of package drinking water is full of up’s and downs. As
there are many competitors in this industry who have well established their
brand not only nation-wide but also on the international level. In spite of
this, this industry is growing at a substantial growth rate and there is enough
space of the new brand to come, establish and grow.
Market Research:
Market research is a necessary thing which every business should do as it
reduces the uncertainty, about the working of the business.
It requires huge investment and it is also time taking process.
9. Competitive Strategy:
Value Proposition
• The company will offer segregated resin regeneration to customers wanting the
highest levels of water purity. Segregated regeneration is not offered by any other
company in Guwahati
• service response
Channel Strategy
The company will adopt the direct selling methods to sell its products
The company will also appoint sales representatives.
The company will also open its retail outlets in some porch locality
They will also do some telemarketing to create awareness
And last but not the least company will also launch its websites which will help the
customer in many ways
10. Pricing Strategy
Wholesale prices have been established to encourage the quick formation of a
dealership network. Dealers are afforded a 33% discount.
Advertising & Promotions Strategy
The company may decide to increase or decrease the amount of marketing
expenses depending upon this choice of promotion activities and type of media
used.
11.
12. Financial Plan
The plant will be operated in the first year at 60% capacity and as the expertise develops the
plant will attain 100% of its capacity by the end of fifth year.
GENERALASSUMPTIONS
1st yr 2nd yr 3rd yr
Plan month 1 2 3
Current Interest Rate 10% 10% 10%
Long Term Interest Rate 10% 10% 10%
TAX Rate 2.5% 2.5% 2.5%
Other 0 0 0
13. Fixed Cost
Land 2,50,000
Building / Infrastructure 4,00,000
Machinery & Equipment 1,50,000
Furniture & Fixture 50,000
Office Vehicles 1,00,000
Office Equipment 60,000
Pre-operating Cost 40,000
Total Capital Costs (Rs) 10,50,000
15. The investment in the initial working capital is of Rs
18,05,000
FIXED COST + OVERHEAD EXPENSES
WORKING CAPITAL
16. Capital Structure & Sales forecast
Particulars Amount (Rs)
Sales 7,00,000
Other operating income 1,00,000
Total operating income 8,00,000
Cost of materials consumed 3,00,000
Stores and tools 5,000
Labor cost 3,00,000
Factory and administrative expenses 10,000
Sales and after sales expenses 10,000
Total expenditure 6,25,000
17. Particulars Amount (Rs)
EBIT 75,000
Operating income 1,25,000
Revised operating profit 2,00,000
Interest 25,000
Depreciation 25,000
Net operating profit- 1,50,000
Profit before taxation 1,50,000
Provision for taxation 25,000
Profit after taxation (Rs) 1,25,000
18. Break Even Analysis
Monthly Units Break-even 119
Monthly Revenue Break-even 34,235
Assumptions:
Average Per-Unit Revenue 287
Average Per-Unit Variable Cost 59
Estimated Monthly Fixed Cost 27,179
21. Ownership
Partnership- This company will be owned by six partners in the ratio
of 1:1:1:1:1:1. Each partner will invest an initial amount of Rs. 2 lakh.
Partners :
Mugdha
Pravleen
Shahzeen
Shailendra
Soumyajeet
Vishal
22. Critical risk and problem
• Copy of the model by competitors is high. But its
impact on the business will be medium
• There is a chance of new technology to come in
from foreign countries which wil make our
technology ineffective.
23. Customer Service
The company will do customer service in the following ways
The company will establish the customer care where customer
can call and can book their order
The company will also establish the website through which
customer can order
The company will also establish retail outlet to expand its
business
The company will also take bulk order and advertise itself
