1) Ronak Thakkar proposes a business plan to establish a franchise model for producing and selling dairy products under the brand "Penda" across 3000 villages in Gujarat by 2020.
2) The franchise model would involve farmers producing milk that is procured, processed, and manufactured into products like khoa, peda and dairy derivatives at franchise locations. Franchisees would pay a 5% margin on profits annually and follow standardized operating procedures.
3) Financial projections estimate that a franchise unit would require an investment of Rs. 2.1 lakhs and could generate annual profits of Rs. 2.5 lakhs, representing a 121% return on investment with a payback period of 1
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Delicious Dairy. Cms Ddu
1. ADVITIYA: Business Plan Contest
In Arohan 2010
On 29th & 30th October 2010
At NICM, Gandhinagar.
Prepared By:
Ronak Thakkar
Center For Management Studies
Dharamsinh Deasai University
2. India will become the
“Food Factory forthe world”
By 2020
-Mckinsey
Facts:
India is the largest in milk production
o but lack behind in Processing.
6. Vision
Give India one brand for khoa sweets
Make that brand leading producer of milk derivatives by year 2025
Increase in consumption/demand of milk products by adding new
customers.
In Gujrat only about 8000 villages. Among we targeted to cover 3000+ by year 2020 to
make a India’s First Penda brand.
7. Franchise
Policies
Standard type of furniture should be require.
Has to follow quality standards and SOP(Standerd
Operating Procedures) updated by us, time to time.
Has to use packaging material sell by us only.
5% margin of the profit is to be paid to us annually.
franchise may be by individual or partnership firm.
8. D. D. Pttern
We are (H.Q.)
Marketing
D. D. DAIRY FRANCHISE
Milk Production and Pooling through farmer producers/
Milk Procurement & Manufauring of Dairy Products
Brand
Name 5%Margin
of Profit
Technical/Mangirial
Guidelines/Training
Packaging
Material
There is a always better way…your challenge is to find it…
9. “Customers are loyal to the Quality not to the producer”
Registration with
MMPO / FSSA2006
for assurance of better quality
Our entire processing is followed by ISO22000 / HACCP
Standerd Operating Proceducer’s for each operation is written,
documented and strictly followed
10. Milk Reception
Testing for quality
(Fat & SNF)
Milk in bulk cooler for
chilling
Fat separated by cream
separator
Standardized concentration
in evaporator
Evaporated milk made
into khoa in khoa pans
Khoa mixed with sugar &
other ingredients
Moulding of peda
Peda packed into boxes
11. Our Team
we encourage rural women also for become part of our
network.
We always motivate our team of staff as well as franchise
holder. And always ready to provide any kind of assistance to
the our franchise holder.
Our Staff consists of
M.D. (myself) - 1
Account Manager - 1
Q.A. Manager - 1
Marketing Executive - 3
P.R.O. - 1
12. Financial Details
(for Franchise holder)
A . Land & Building
For starting a Dairy business on a very small
scale, a room of 12 feet x 20 feet may be hired.
The rent for the same may be assumed as Rs.
2000 per month.
13. B. Cost of Equipments:
Sr. No Name of the equipment No.s Total cost
(Rs)
1 Scraped surface heat exchanger 1 50,000
2 Diesel or Gas furnace 1 50,000
3 Milk cans/Pails/ Other containers 5 25,000
4 Cream Separator of 165 lit capacity 1 25,000
5 Hand cum electric Butter Churn 1 10,000
6 Scrapers & Sweet containers 1 5,000
7 Fat testing machine (hand operated) 1 5,000
8 Deep Freezer (400 cubic feet) 1 30,000
9 Miscellaneous -- 5,000
10 Shop furniture 5,000
Total Investment 2,10,000
14. C. Manufacturing cost (for 30 days)
Sr No Particulars Cost, Rs / Month
1 Basic Raw material , Milk 100 Kg per day
Fat - 6.0%, Kg Fat: Rs 375 / Kg
67,500
2 Sugar at Rs. 30/kg 10,800
3 Labour charges (2 persons) 5,000
4 Fuel Charges (1 liter fuel per 10 to 13 lit of milk will be
required.)
10,000
5 Electricity charges 1,000
6 Rent 2,000
7 Miscellenous 5,000
8 Packaging Material 7,500
TOTAL 1,08,800
15. D. Production Cost :
Particulars Amount (Rs.)
Variable cost 1,08,800
Depriciation (10% liner) 1,750
Intrest (at rate 8%/ann.) 1,400
Total Amount 1,11,950
Production Cost per kg. 149.27
E. Selling Cost
Products Output/day (kg) Selling Price
(Rs/Kg)
Sell per month of
products
Burfi/Penda 25 200 150000
16. F. Profit of franchise holder:
Particulars Amount (Rs.)
Profit per kg 50
Kg production daily 25
30- days in a month 30
Total Profit per month 22,500
Total Profit per annum 2,70,000
Margine to pay (@5%) 13,500
Intrest Payable (@ rate 8%) 16,800
Net Profit 2,54,700
the anticipated percentage return on investment = 121%
the likely pay back period of capital for a unit franchise = 1 year
20. Variable Cost
Particulars Amount (Rs.)
Internet/ telephone/mobileBill 25,000
Electricity Bill 10,000
Travelling Expendature 2,00,000
Advertizing Material 5,00,000
Total 7,35,000
21. Sr.
No.
Particulars Amount (Rs.)
At the end of 1st year
1 Income (at 5% margin) 38,20,500
2 Total Expendature 25,35,000
a. Variable Cost 7,35,000
b. Staff & Wages 16,80,000
c. Depreciation (linear 10%) 1,20,000
3 Interest (at rate 8%) 2,60,800
4. Profit before tax 10,24,700
5 Provision for taxes 2,04,940
6 Net Profit 8,19,760
22. Finacial Feasibility
In this Plan,
o not taken any deposite from franchise holder.
o not got any Subsidy/ non-refundable grant from Government.
o Not consider any incentive from Government.
but when in actual implimintation we will try to get as
maximum as possible benefits and consider it into
profit.
24. Ice-cream consumption in various countries
COUNTRY PER CAPITA CONSUMPTION IN LITRE
US 22
AUSTRALIA 18
SWEDEN 14
UK 05
THILAND 1.8
INDONESIA 1.8
PAKISTAN 0.4
SRILANKA 0.3
INDIA 0.1
With changing consumption pattern and increased purchasing power of
Indian consumers, it is possible to establish an enterprise at small scale to
manufacture and market variety of dairy products viz. khoa, ice cream,
probiotic foods etc.
According to PFA standards (1994) stabilizer and emulsifiers = 0.5 % max.
25. Thank You for your Kind attention
Have a Great Day
Guidelines / Suggestions
Quarries / Inquiries / Consultancy
Are always welcome to
Ronak Thakkar at
Email : 06ft340@adit.ac.in
Mobile : +91 9879423300