Business Plan

A Business Plan to start a new business S P Hutchies India Ltd.

A Business Plan to start a new business S P Hutchies India Ltd., prepared as a part of the curriculum Management Studies and Research at Humera Khan Institute of Management Studies and Research.

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Business Plan
A Business Plan to start a new business S P Hutchies India Ltd.

Venue: HK Bldg., Adj MHADA Complex, Oshiwara, Jogeshwari (W), Mumbai-102 | Tel.: 26774639 / 26774588 - Fax: 26790095

Submitted By: DARSHAN PATIL ROSHAN VICHARE DHAWAL SHAH RUBY SINGH

Business Plan

Submitted to: Prof. Sadaf Khan

Content: Project Information

COMPANY PROFILE EXECUTIVE SUMMERY PROJECT INTRODUCTION PRODUCT INFORMATION
Business Plan

PRODUCT FEATURES NUTRITION CONTENT VITAMINS CONTENTS OTHER PROTEIN SOURCES COMPETETIVE ADVANTAGE i. Protein Shake v/s Solid Protein ii. Technology behind the Project GENETICS PROCESS SALMONELLA TREATMENT EXAMPLE OF HYPOTHETICAL DIET PLAN

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COMPANY PROFILE
COMPANY NAME:

OFFICE ADDRESS: S P HUTCHRIES INDIA LTD. 3372, Chavata, Old Nashik Road, Chavata, Nashik-.

Office Contact No. : 0250-2513905

E-mail id for Support: info@sp15.com

Website: www.sp15.com

Business Plan

EXECUTIVE SUMMERY
The poultry farming in India occupies an important position due to its enormous potential to bring about rapid economic growth, particularly benefiting the weaker sections due its low investment requirement and short gestation period. The poultry, which was considered as a backyard proposition in the early 60s has now been transformed into a strong agro based commercial activity having tremendous employability and income generation potential contributing nearly 0.7% of the national GDP and about 10% of the Livestock GDP. We four of us planned to start this business after going through surveys and studies about many egg consumers who are now shifted from the normal egg to protein shake. Our focus was not only Maharashtra but all the egg consumers of India who prefers an added protein over the normal egg. Secondly our focus is on professions like BodyBuilding, Athletes, Actors, Sports persons those who are concentrating on the health. So we are planning the processed egg with High Protein Content as well as keeping the muscle growth in mind. According to marketing analysis we found that customer always need something new as well as cost effective options. i.e. Greater Value with lesser cost. Currently in the market there are two qualities present Layers and Desi keeping this thing in mind we are coming with a new quality of the egg. 4 Introducing our Brand SP15
Business Plan

A Business Plan to start a new business S P Hutchies India Ltd.

Indias poultry industry represents a major success story. While agricultural production has been rising at the rate around 2 percent per annum over the past two to three decades, poultry production has been rising at the rate of around 8 percent per annum, with an annual turnover of US$ 7 500 million. The future outlook for Indian poultry also appears to be very favorable. The most conservative estimates predict a two- to three-fold increase in poultry production over the next ten or fifteen years.

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PROJECT INTRODUCTION
1.1 Project Brief

1.2 Opportunity Rationale

Layer farming is a profitable business as the produce of the farm provides high quality animal protein which is daily requirement of the human body. Animal Protein is more valuable than that of plant protein. The average availability of protein is 11 grams a day, which is far less than the recommended daily dietary protein consumption of 26 grams according to the World Health Organization Standards. The bodybuilders diet consists of 3 meals a day, plus several snacks in between the meals. Protein shakes are the best option for those snacks. Usually a protein shake consists of protein powder, skim milk, and flavouring of fresh or frozen fruit. If a protein shake is prepared correctly, it is a great high-protein, low-fat bodybuilding food. There is also an opportunity in this field if we can give an optional product with added protein content.

Business Plan

Layer farm business is an agro-based project. This can be started in both rural and semi-urban areas. According to the current industry practice, poultry sheds are available on rent basis. These sheds have complete required facilities and equipment. The rent varies between Rs 0.5 to Rs 1 per square e feet depending upon the location and facilities at the farm. Major portion of the cost includes bird feed. Day old chicks of Layer are initially reared for a period of 18 weeks. On completion of 18 weeks, the birds start laying eggs for the period of next 52 weeks. On an average, one layer lays about 300 eggs per laying season of 52 weeks. After the completion of laying period, the layers are sold in the market as culled birds. The selling price of these birds is determined on per bird basis.

1.3 Total Project Cost

A Poultry farm with a population of 5,000 birds started in a rented shed requires a small capital investment of about Rs 62,000 for purchasing farm machinery and equipment. A sum of about Rs 288,000 is required as working g capital, which will be used for purchasing day old chicks and raw material (feed & vaccines) etc.
1.4 Proposed Capacity

5000-birds are the minimum economic size to start a layer farm, where the operational and fixed costs are justifiable. These birds are kept for sixteen months, which includes a rearing period of 4.5 months and laying period of 12 months.

Business Plan

Layer Farm layout

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PRODUCT INFORMATION
Product Name:

SP15
Product Preview:

Mission Statement:

We Nourish People
Product Tagline: 7

The Best Square Meal

Business Plan

PRODUCT FEATURES
Following are the features of the SP15

Modified Hen egg High protein Salmonella Treated With essential nutrients.
Business Plan

NUTRITION CONTENT:

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VITAMINS CONTENTS:

OTHER PROTEIN SOURCES:

Protein source

Protein content (gm) 5-6.5 6.5 5 6.6

Per

Hen egg(Normal) Chicken Cottage cheese Fish

1 Whole 25gms 25gms 25gms 9

Business Plan

COMPETETIVE ADVANTAGE
Protein Shake v/s Solid Protein: Whey protein is absorbed very fast (in some cases, depending on heating time of the product, about 1hr). Thus, solid protein takes longer to digest and absorb giving you the ability to have a positive nitrogen balance and steady release of Amino Acids. Whey enters the blood stream very fast, but also leaves very fast. Technology behind the Project:
Business Plan

Use: Layers, White leghorns hen to breed: We will be using a special breed of the Hens for this project. This breed is a very high quality layer called Leghorns. This Breed lays 300 Eggs per year.

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GENETICS PROCESS
R&D will do genetic modification on parent specimen of hens. In this process they will modify the gene which is responsible for protein production. After this process hens will be kept for the laying the eggs

SALMONELLA TREATMENT
The eggs first gets inspected and then selected for the Salmonella Treatment. Following picture depicts the Salmonella.

Business Plan

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Scientists prepare to inspect eggs for Salmonella enteritidis contamination. (Photo credit: Stephen Ausmus/USDA)

Business Plan

After selection of the eggs they undergo following Salmonella Process:

Step 1- Use of Lugols solution Step-2 Use of Chlorohexidine + Ethanol + Quaternary Ammonium solution Step 3- Fleming

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Eggs undergoing Salmonella Treatment

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EXAMPLE OF HYPOTHETICAL DIET PLAN

Hypothetical diet plan of body building professional. If he needs 150gms proteins per day, he has to eat 25eggs i.e. 25*6=150gms

But he will need only 10,SP15 eggs, to get 150gms of proteins. i.e. 10*15=150gms

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MARKETING PLAN
UNIQUE SELLING PREPOSITION (USP) MARKETING STRATEGY MARKET SEGMENTATION 1. POPULATION DEMOGRAPHIC 2. AGE DEMOGRAPHIC 3. SALARY DEMOGRAPHIC
Business Plan

TARGET AUDIENCE VALUE PROPOSITION

SWOT ANALYSIS

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UNIQUE SELLING PREPOSITION (USP) Only added PROTEINS with no side effects MARKETING STRATEGY
Business Plan

Marketing Strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.

Pre-launch

Announcement Advertisement: Brochures, newspaper, promo cards, gift coupons Promote Exciting First Day of Launch

Post-Launch

In-store promotion Merchandising Discounts & Promotional Offers Advertisement on TV & Newspaper
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POPULATION DEMOGRAPHIC

Business Plan

Source: NFO Research Share of Intake Panel 2011

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AGE DEMOGRAPHIC

25%

25% 38% 47%

20%

24% 27%

50+ 35-49 18-34 Under 18

27%

22%

32%

25% 28% 29% 10%

2010 2011 2010

18% 3%
2011

E Total Population Egg Eating Population

Source: NFO Research Share of Intake Panel 2011

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TARGET AUDIENCE
Health conscious people Film Actors Sport persons Body building professional.

Business Plan

VALUE PROPOSITION

LOW COST OF PRODUCT

VALUE
Personal Trainers High Protein Content

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SWOT ANALYSIS

Strengths
Technological and financial support from NECC

S W
This is a strong business sector so there are no weaknesses in this business.

Opportunities

There is Large Market Size for this product.

O
T
Threats
Price fluctuation in market due to the inflation Eg. Diesel price hike at regular intervals Many diseases associated with the hens. 19

Business Plan

Weaknesses

Financial Plan
Our Financial Plan includes following things:

Land And Building Project cost

Business Plan

Financing Projected Income Statement Key Assumptions 1. Production Assumption 2. Expense Assumption 3. Revenue Assumptions 4. Financial Assumption

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LAND & BUILDING

Recommended Mode for Acquiring Land It is recommended that the proposed project should be started in a rented shed. This option will help us to save on the capital cost required for constructing new sheds. Normally, these sheds are located along the roadsides around the cities and rural areas. Generally, the rate prevailing in the market is around Rs 1 per square feet. Space Requirements Required (SQ. FT) 10000
Business Plan

Shed Space @ 2 Sq.ft / Bird Store Room Rooms For Guards & workers Pavement/Driveway Total project space required Rent Total Rent

64 144 510 10718 1 Re 10718

Suitable Locations
Sub-urban and rural areas around the major cities of the country are recommended for starting a layer farm. Setting up a farm at an isolated place will minimize the risk of disease.

Infrastructure Requirements
Road Electricity Water Drainage of rain water

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Project Cost
Project Cost Machinery & equipment Cost Total Fixed Cost Raw Material Inventory
Business Plan

Rs. 62000 62000 159614 128616 288320 350230

Prepaid Bldg. Rent (10718 *12) Total Working Capital Total Project Cost(INITIAL)

Financial Planning
INITIAL FINANCING Debt Equity 50% 50% Rs. In actual 175115 175115

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Projected Income Statement

Particulars Sales (COGS) G.P (Op. Exp) Op. Profit (Non OP. Exp) NPBT (TAX @ 20%) NPAT Retained Earnings Beginning of Year End of year Year 1 1510361 (1501526) 8836 (69792) (60956) (156634) (217591) Nil (217591) Nil (217591) Year 2 1546687 (1437091) 109595 (72494) 37101 (218451) (181351) Nil (181351) (217591) (398941) Year 3 2912468 (1750737) 1161731 (68913) 1092818 (260406) 832412 (166344) 666068 (398941) 267127
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Key Assumptions
1) Production Assumptions:Maximum Capacity Utilization Number of Birds per Flock Number of Flocks per Year Total Mortality Rate Mortality Rate (Rearing Period) Mortality Rate (Laying Period) Total Mortality Loss (Birds) Total number of Birds Laying Eggs Length of Rearing Period (Months) Length of Laying Period (Months) Lag time between the Flock(Weeks) 100% 5000 1 5% 3% 2% 250 4750 4.5 12 2

Business Plan

2) Expense Assumption:Maximum Capacity Utilization

Number of Birds per Flock Number of Flocks per Year Total Mortality Rate Mortality Rate (Rearing Period) Mortality Rate (Laying Period) Total Mortality Loss (Birds) Total number of Birds Laying Eggs Length of Rearing Period (Months) Length of Laying Period (Months) Lag time between the Flock(Weeks)

100%
5000 1 5% 3% 2% 250 4750 4.5 12 2

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3) Revenue Assumption:Number. of eggs laid/Bird/Month (Dozens) Availability of Eggs in Year 1 (Months) Production Capacity in Year 1 (Dozens) Eggs selling price (per Dozen) Birds selling price Litter selling price (per Flock) Feed Bags selling price (in Rs) Sales price growth rate 2 7.5 71250 21 20 1500 5 10%
Business Plan

4) Financial Assumptions:Project life (Years) Debt Equity Interest rate on long-term debt Interest rate on short term debt Debt tenure (Years) Minimum Cash Balance Economy Growth Rate 10 50% 50% 16% 16% 5 10000 10%
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