The document describes the Kurkur Papad Cooperative Society project. It discusses the formation of the cooperative with 80 women members, a total equity of Rs. 96,000, and a bank loan of Rs. 5,64,000. The cooperative's objectives are to ensure regular income for members and promote local food processing. It has a three-tier structure and manufactures papads and other snacks from raw materials supplied to village cooperatives. A financial analysis shows that in the first year the cooperative expects a net profit of Rs. 2,44,864 and will reach the break-even point of Rs. 3,65,000 in sales in the third year.

1. Project Report
“KURKUR PAPAD ”
CO-OPERATIVE SOCIETY

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

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 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