Vocational Training Center For Employment

Generation(VTCEG)
Agribusiness Products

(Term Paper Of Entrepreneurship & Business Plan.)

Submitted as a partial requirements of MBA IIIst semester

Submitted by:-
MBA IIIst semester
Section: 1811
Roll No: 06-07-08-09-10

Submitted to:-
Mr. Lokesh Jasrai
Lecturer: - Entrepreuireship & Business Plan.
LSB. (LPU)

LOVELY PROFESSIONAL UNIVERSITY

Phagwara
 ACKNOWLEDGEMENT

A person always requires a guidance and help of other to achieve success in his mission.
Similarly it was not possible for me to complete my project individually. I am very much
thankful to all the people who have helped me to complete the project.

I am gratefully indebted to Mr. LOKESH JASRAI ,( Lecturer, Management ) my term

paper guide for providing me the necessary help, editing my project and required guidelines
for the completion of my project and also for the valuable time that he gave me from his busy
schedule.
Last but not the least I am thankful to all my friends of inspiration and information for us.
I thank to god and my parents for showing their blessings.

Deepak Bhardwaj

TERM PAPER SNAPSHOT(Major Parts)

OPERATIONAL IDEA

MARKETING PLAN

FINANCIAL PLAN
EXICUTIVE SUMMARY

The business plan is based upon the agricultural products i.e Sauce And Pickle(Mixed) the
location is Kangra (H.P). In agriculture, agribusiness is a generic term for the various
businesses involved in food production, including farming and contract farming, seed supply,
agrichemicals, farm machinery, wholesale and distribution, processing, marketing, and retail
sales. The term has two distinctly different connotations depending on context.

Within the agriculture industry, agribusiness is widely used simply as a convenient

portmanteau of agriculture and business, referring to the range of activities and disciplines
encompassed by modern food production. There are academic degrees in and departments of
agribusiness, agribusiness trade associations, agribusiness publications, and so forth,
worldwide.
 WHY, named ? Vocational Training Center For
Employment Generation(VTCEG)

The name indicates that firstly our business gives opportunity to the people of rural area in
terms of employment, then we will give training to the people then shift them to do
separately as a subsidiary of our firm that’s why the name is VTCEG,

BUSINESS PLAN

A business plan is a formal statement of a set of business goals, the reasons why they are
believed attainable, and the plan for reaching those goals. It may also contain background
information about the organization or team attempting to reach those goals.

The business goals may be defined for for-profit or for non-profit organizations. For-profit
business plans typically focus on financial goals, such as profit or creation of wealth. Non-
profit and government agency business plans tend to focus on organizational mission which
is the basis for their governmental status or their non-profit, tax-exempt status, respectively—
although non-profits may also focus on optimizing revenue. In non-profit organizations,
creative tensions may develop in the effort to balance mission with "margin" (or revenue).
 HIGHLIGHTS OF AN BUSINESS PLAN & Operational plan

An Idea- Agribusiness Products by the Brand name of (VTCEG)

Location- Kangra(H.P)

Total CAPITAL(estimated)- 1500000

Benefits-
PERSONAL
1) Profit Max.
2) To use expertise/knowledge

SOCIAL
1) Employment Generation
2) Remove Poverty
3) Favorable for customer

Target Market- Kangra (H.P).

Business Type- Life Style (15-20) employees.

Products – Sauce (Tomato), Pickle (Mixed).

Capital- 2,50,000 ( Loan From Co-op Bank), 2,50000 Self Financed..

Demographics- /Customers- all segments because it is the need of every INDIAN

household.
APPROVAL FOR GRANT? AID from Himachal Govt.for
agribusiness projects (Procedure)

Application form taken from HPSIF(Himachal Pradesh state industrial forum)

Filling the enterprise description/send the information to HPSIF

Confirmation by HPSIF (Via-latter)

Visit of HPSIF (premeses)

Feasibility Audit of Bisiness(agribusiness context)

Final approval

Grant/Aid acc. To size of business

SWOT AMNALYSIS

Strength- Govt. Aid

Raw-material ease(Agricultural residues in rural area)

Weakness-Competition from branded products

Opportunity- expansion of market

Threat- Business failure coz of heavy competition

 All the business- manufacturing or nonmanufacturing should include an operational

plan as a part of the business plan. Following data will throw some light on the daily
operation of our business, its location, equipment, Supplier, processes, flow of services to
customers.
Location
• Amount of space: shop on rental measurement

• rural and urban area of himachal pradesh

• Power and other utilities : electricity, water facility and sewerage supply

• Because there our operational cost is low and profit maximizes.

• That’s why we have our location for our business is in rural area a himachal pardesh
(dist.kangra) because here we can see our potential customers and we are having our
own land there.

• We are having the space of 200 sq. feet

• We are having the location advantage that we do not have to purchase the location.

Products
 Pickle

 Sauce tomato)

Survey required:-
 Type of pickle liked by people

 Reasonable prices for each product

Competition
There are so many local competitors are present in the market and some branded also. So for
beat the competition, it is very important to market our product effectively with promotional
efforts.

SALARY monthly

emplyoyes salary(rs) total

2 marketing exexutives 5000 10000

2 driver 2500 5000
3 helper 1500 4500
workers
6 skilled 4000 24000
4 unskilled 2500 10000
6 packaging 1500 9000
2 supervisor 8000 16000

78500

RAW MATERIAL QUARTERLY

PRICE/
K.G QUINTALS K.G AMOUNT
mango 30 50 5000 150000

carrot 15 50 5000 75000

radish 4 25 2500 10000

turnip 6 30 3000 18000

cauliflower 10 20 2000 20000

chilly 10 10 1000 10000

others 70000
 total 353000

TOMATO SAUCE
tomato 15 80 8000 120000

others 80000

total 200000

grand total 553000

Technology
There is no need to have high technological equipments but there is a need of preservers for
pickles, grinders for pickles.
Need machinery for the pickle.

What are the BENEFITS that we are able to achieve??

 PERSONAL:-profit maximization

 SOCIETAL:-remove poverty

 Increase level standard of bpl families

 Generate employment

Costing
• Construction cost with full furnishing would be around 8 lacs

• Transportation cost depending upon the situation.

• Cost of machinery around RS200000

• Capital invested 1500000 out of which 5 lakh is from loan.

 • Purchase two cab 300000

MARKETING PLAN

Marketing is the process associated with promoting for sale goods or services. It is
considered a "social and managerial process by which individuals and groups obtain what
they need and want through creating and exchanging products and values with others. It is an
integrated process through which companies create value for customers and build strong
customer relationships in order to capture value from customers in return.

PRODUCTS- Sauce(Tomato), Pickle (Mixed)

MARKET- Rural And Urban(Main Focus)
DEMOGRAPHIES/Customers- all segments because it is the need of every INDIAN
household, because Indians are more passionate towards the spicy . Demographics or
demographic data are the characteristics of a population as used in government, marketing
or opinion research, or the demographic profiles used in such research. Note the distinction
from the term "demography" (see below.) Commonly-used demographics include sex, race,
age, income, disabilities, mobility (in terms of travel time to work or number of vehicles
available), educational attainment, home ownership, employment status, and even location.
Distributions of values within a demographic variable, and across households, are both of
interest, as well as trends over time. Demographics are frequently used in economic and
marketing research.It is important to distinguish between demographics and psychographics
Frequency Of Purchase(Monthly)- 1 Kg. (Family having 2-5) members
 COMPETETOR Analysis-

PICKLE(Mixed)
Aeroplane,Pachranga,PAN,KISSAN. Etc
Competitor Pricing-
120 per Kg.(Kissan,Pan)
80-95 per Kg.(Local Vendors)

SAUCE (Tomato)
Kissan- 57 per ½ kg.
Local Products- 45 per ½ Kg.
All figures are taken from original amount of products (MRP) including all taxes and
VAT

OUR PRICING
Type--(Competitive Pricing)
For Pickle
100 Rs. Per Kg. (Mixed Only)
For Sauce
55 Rs. Per ½ Kg.

QUALITY MAINTAINANCE

• Vinegar based Chemicals are used to preserve products from Algae.

• Supervisor will be there to quality Audits.
•
• ADVERTISEMENT
• Advertising is a form of communication used to influence individuals to purchase
products or services or support political candidates or ideas. Frequently it
communicates a message that includes the name of the product or service and how
that product or service could potentially benefit the consumer. Advertising often
attempts to persuade potential customers to purchase or to consume a particular brand
 of product or service. Modern advertising developed with the rise of mass production
in the late 19th and early 20th centuries.
•
• For Rural Market--
Local Cable Networks are best.
Banners in local fairs & Gatherings(Punchayats)
Print advertisement in Local News-papers
For general market—
Banners. Hoardings, Local News Papers etc

EXPENDUTURE OF MARKETING
Total
Advertisement(Type) Expences(Rs.) Frequency(How Many Times) Cost(Rs.)
Convensional 5000 1 5000
Local Cable
Connection 150/Day 200 30000
Banners 200/Banner 500 10000
Regional Newspaper 100/Day 50(ONES IN A WEEK) 500
2000(Including
Knobies Panphlets) 2 4000

Grand Total(Rs.) 49500

Estimated Amount for

Marketing(Rs.) 50000
FINANCE MANAGEMAT/FINANCIAL PLAN

PROFIT AND LOSS ACCOUNT

PARIICULAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR

Sales 4252000 5525000 6452000 7700000 8850000

diret cost of sale 2126000 2762500 3226000 3850000 4425000

other product expenses 0 0 0 0 0

total cost of sale 2126000 2762500 3226000 3850000 4425000

gross margin% 50% 50% 50% 50% 50%

expenses

payroll 942000 1036200 1139820 1253800 1379180

marketing expense 600000 400000 380000 750000 800000

electricity 180000 190000 200000 210000 220000

telephone 30000 30000 30000 30000 30000

utility 0 0 0 0 0

deprication on cab 30000 30000 30000 30000 30000

deprication on machinery 20000 20000 20000 20000 20000

rent 120000 132000 145200 169720 186690

raw material 2212000 2712000 3250000 3800000 4350000

total operating expense 35344600 4550200 5195020 6263520 7016170

profit before interest and tax 717540 974800 1256980 1436480 1833830

EBITDA 717540 974800 1256980 1436480 1833830

Interest expense 71754 9780 125698 143648 183383

tases incured 89692 121850 157123 179560 229228

net profit 556094 843170 974159 1113272 1421219

net profit/sales 13.08% 15.20% 15.09% 14.45% 16.05%

ANALYSIS OF NET PROFIT

The net sale for the first year is 4252000 and it has been increase every year. In the next year
the sales has been increase to 5525000 and so on in the fifth year it is 88500000. The direct
cost of sale is half of the sale so the gross margin is 50%. In expense we have pay salary
according to skill and work done from worker. In first year the salary is 942000 and it has
been increase every year with the increment 10%. The expenses on marketing in first year are
600000. The expense in first year is more as compare to second year because in first year
every business requires more money for marketing to promote their product. In forth year the
expenditure in forth year is more because business need to expand more and to recall the
customer about the product. The expenditure of telephone is fixed 30000. The plan of 2500
per month unlimited is provided by company to business man. Deprecation on cab is fixed
3000 every year because we are applying straight line method. We are charging 10%
depreciation on cab as well as in machinery which we have use for our business for pickle
and sauce business. We are paying rent 10000 per month so the rent for the first year is
120000 and it has been increase 10% increase. The raw material for the business is 2212000
and it has been increase every year because the sale has been increases every year. The
interest charge in every year is 10%. Tax incurred in first year is 89692 and it has been
increase every year. So at the end the net profit is 556094 and it has been increase every year,
in first year net profit is 13.08% and every year it has been increase except 4th year because
on this year the expense has been increase.
 CASH FLOW STATEMENT
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
cash flow from operating activities

cash sale 4252000 5525000 6452000 7700000 8850000

Sub total Cash from

Operations 4252000 5525000 6452000 7700000 8850000

Additional Cash Received

Sales Tax 0 0 0 0 0

New Current Borrowing 0 0 0 0 0

New Long-term Liabilities 0 0 0 0 0

Sales of Other Current Assets 0 0 0 0 0

Sales of Long-term Assets 0 0 0 0 0

New Investment Received 0 0 0 0 0

Subtotal Cash Received 4252000 5525000 6452000 7700000 8850000

Expenditures from Operations

Cash Spending 35344600 4550200 5195020 6263520 7016170

Subtotal Spent on Operations 35344600 4550200 5195020 6263520 7016170

Additional Cash Spent 0 0 0 0 0

Sales Tax 170080 221000 258080 308000 354000

Principal Repayment of Current

Borrowing 0 0 0 0 0

Purchase Other Current

Assets 0 0 0 0 0

Purchase Long-term Assets 0 0 0 0 0

Dividends 0 0 0 0 0
Subtotal Cash Spent 3714680 4771200 5453100 6571520 7370170

Net Cash Flow 537320 753800 998900 1128480 1479830

ANALYSIS OF CASH FLOW

The net sale for the first year is 4252000 and it has been increase every year. In the next year
the sales has been increase to 5525000 and so on in the fifth year it is 88500000.The
expenditure from operations in first year is 3544600 it include all the expenses incurred on
the business it include the expense to purchase the row material, marketing expenses and
machinery which we have purchase for the business and also include all the miscellaneous
expenses. We are not giving any type of dividend to the owners. So at the end the net cash
flow in first year is 537320 and in second year it is increases at a fast speed it reached to
753800 and at the 5th year it is reached to 1479830.
 CONCLUSION

In agriculture, agribusiness is a generic term for the various businesses involved in food
production, including farming and contract farming, seed supply, agrichemicals, farm
machinery, wholesale and distribution, processing, marketing, and retail sales. The term has
two distinctly different connotations depending on context.

Within the agriculture industry, agribusiness is widely used simply as a convenient

portmanteau of agriculture and business, referring to the range of activities and disciplines
encompassed by modern food production. The net sale for the first year is 4252000 and it has
been increase every year. In the next year the sales has been increase to 5525000 and so on in
the fifth year it is 88500000. The direct cost of sale is half of the sale so the gross margin is
50%. In expense we have pay salary according to skill and work done from worker. In first
year the salary is 942000 and it has been increase every year with the increment 10%. The
expenses on marketing in first year are 600000.
 BIBLIOGRAPHY

BOOKs

Gupta.K.S(2007)Entrepreneurship,kalyani pub.

Web Portals Visited

www.globalguide.com/serty
www.nenonline.com/html
www.bizmantara.com
www.questqueck.com