Sabziwala.com:Products and services:Now a day in changing social scenario most of the families are nuclear.

In lots of families both the parents are working, they used to go to their work early in the morning and then come back to home at late night. As a result they mainly have to rely on fast foods and home services, or they have to hire a cook who will do cooking for them. Again this has a problem because regular fast foods/home services may not satisfy your taste buds. At the same time in most of the cases it is not good for health and expensive too if we consider these foods regularly for a long time. If we analyze the problem we will see that people avoid cooking not because of the fact that they hate cooking. It is because before cooking they have to arrange several things like they have to go to the market, purchase necessary ingredients of cooking, cut it, wash it and then only they can start cooking. So it generally takes time which they dont have. To avoid this you can store vegetables/fish/chicken etc but again the question come to your mind is will it be fresh till when I cook. Sabziwala.com is the solution to all of you. It is an online portal where you can place your daily sabzi/fish/chicken orders and you will get home delivery when and where you want. Not only that if you feel lazy we will help you with already cut and washed fresh vegetables/fish/chicken etc. So our motto is You just cook rest all we take care. You need not to worry about freshness quotient because we will purchase your order just after you place your order. So order us from your office either by phone or online and get your order at your doorstep when you return. We will charge you only 12% of your total purchase as the service charge and you can pay using your credit card or e-banking facility. We have special prepaid member card while we will charge you only 8% of your purchase amount as service charge. We provide free home delivery to any order more than Rs-100. We will always suggest you to cook your food yourself. But after the hard work for entire day if you dont like to cook at all even with our ready to cook products we are with you with our mummys kitchen. We have very basic ghar ki khana where you will get 3 option like North Indian Food (rice, chapatti, sabzi, daal, paneer/non veg item), Gujrati thali and South Indian Thali option. Our specialty will be cooking healthy, nutritious and home like foods which you can take regularly without any problem.

Potential Market Analysis:Sabziwala.com will have market mainly in Indias fastest growing cities like Bangalore, Pune, Chennai, Gurgaon, Delhi, Kolkata etc. Our target customers will be tech-savvy young generation, mainly software and other service sectors professionals who earn more but get a little time.

It can face mainly 3 kinds of challenges like I) Departmental shops where ready to eat packaged food is available ii) Street vendors and iii) Home delivered food (called dabba system natively). But sabziwala.com will create a separate market overcoming this market challenges. This is because of following reasons: 1. Processed ready to cook vegetables/ fish/ chicken which they do not from street vendors. 2. Convenient time of placing the order and delivery. 3. Fresh products directly from market. Departmental shops usually sell processed foods which are ready to cook, but these foods are frozen, kept for a long time and hence low in nutrition value and taste. 4. Mummys kitchen will serve for those who dont like to cook at all with tasty home like foods. Strategy and implementation summary: Initially we will concentrate on mainly fastest growing Indian cities. We will have a central office in each of the cities from where we will take orders over phone or internet and these orders will be forwarded to zonal offices. Each of the zonal office will have a tie-up with a local market from where they will purchase the order. They will cover a circle of 7-9 km radius. Each zonal office will consist of 29-30 persons (1 person for taking the order via phone from central office, 4 persons for purchasing orders from market, 3 person for processing vegetables/fish/chicken and make it ready to cook, 3 person for mummys kitchen segment to make ready to eat foods and 19-20 person for delivery, 1 person as supervisor of kitchen and delivery). The delivery persons will have a bike/scooter and the entire set up will be flexible and no of workers can be increased if required.
Flow Diagram of Entire Process
Central order receiving office

Zonal Office 1

Zonal Office 2

Zonal Office 3

Zonal Office 4

Purchasing the order from local market of each zone

Processing the order (Washing/Chopping/Marinating etc) to make it ready to cook and packaging

Cooking ready to eat food

Delivery and on delivery payment

Financial planning:
Start up expenses: We will start the business initially in 3 cities (Kolkata, Mumbai, and Bangalore) and each city will initially have 1 central unit each and 3 zonal units in prime locations. The start up cost is projected on the basis of it. Heads Values Start Up Expenses Legal (Company registration etc) 1,00,000 Marketing before product launching (Print, Email-ad, sms. Glow sign 10,00,000 banners) Web site (developing, updating, designing etc) 50,000 Total start up expenses 11,50,000 Start up assets 3 computers with i-net connection and telephone for 3 central units 75,000 House rent advance (for central and zonal offices in each city) 3,60,000 Equipments( gas oven, cooking utensils, chopping equipments etc) 1,00,000 Telephone connection (for each zonal units) 75,000 Vehicle cost (15-bike/scooters for each of the unit for delivery) 50,00,000 Miscellaneous (Stationery, office equipments etc) 1,00,000 Total start up assets 57,10,000 Total Requirement (assets + expenses) 68,60,000 Means of Finance: - Owners cash (40%) =Rs.27, 44,000 Loan @12.5%= Rs.-41, 16,000 _______________________________ Total: Rs: - 68, 60,000 Operational costs (monthly basis):- As per as our projection the company will start running in 3 cities initially with total employee strength of around 250-265 people. There will be 29-30 people in each zonal unit and 2 people in each central unit. Heads Salary and wages of personnel House rent or lease payments Advertising cost Electricity Gas Telephone service and internet connection Web site updates on daily basis Maintenance of computers, telephone etc Depreciation of equipments @2.5% Maintenance cost of vehicles Fuel cost of Vehicles Other expenses Total operational cost/month Values 15,00,000 80,000 6,00,000 20,000 35,000 20,000 25,000 15,000 2,500 1,00,000 4,00,000 1,20,000 29,17,500

Total operational cost/year

3,50,10000

Operational cost in this case will remain more or less same if our no of orders are increased but dont reach the maximum capacity. Except for few heads in the above table all the values will remain unchanged and those changes of values will be negligible. What we mean to say is most of the values are fixed value which does not depend on total no of orders if total no of orders stays within maximum limit. Capacity Utilization: - Each zonal unit will be capable of catering 550-600 orders with their initial setup within a circle of 7-9 km radius with initial manpower of 29-30 worker/unit. In initial phase we are considering 75% of utilization of total capacity and catering around 400-450 orders daily per zone. We have assumed a 2.5% increase in orders during 2 nd quarter and 5% during 3rd and 4th quarter. Sales Projection: Since the concept is very new it becomes difficult to speculate the sales revenue. We consider 1 square kilometer zone in our target area of each specific city. Then we tried to analyze who are the potential customers in this zones and what amount of money they are actually spending in market buying products like vegetables, fish, chicken and cooked foods etc. We studied that in each testing zone the number of such order is around 5-7/day (avg=6) and each order will have an average purchase amount of Rs.130-150 (avg= 140) depending on city. Now since each of our zonal unit is covering 64-81 (avg=72) square kilometer area we straightaway multiplied our sample data with a multiplication factor 72 (as initially we have taken sample zone of 1 square kilometer). In this way we projected our sales revenue. So we can assume (6*72)=432 orders/day/zonal unit. Now multiplying this value with average order value (i.e. Rs-140) we get that revenue/day/zonal unit is Rs-60,480. So each day from a city with 3zonal units we will get revenue of Rs.1, 81,440. So from all of the 3 cities we will get a revenue of Rs.5, 44,320. Now calculating this value on a quarterly basis we will get neutral quarterly turnover of Rs.-4, 89, 88800. We have calculated optimistic value and pessimistic value by calculating +/- 5% of neutral value. At the same time this kind of concept will take its time to penetrate in the market and to overcome initial market inertia. We will put our stress in massive and intensive marketing and we hope to get around 2.5 growths for first two quarters and 5% growth from 3rd quarter onwards. Based on that we made projected sales chart. Quarters Optimistic (Rs) Neutral(Rs) Pessimistic(Rs)

1st quarter

4,65,39360

4,89,88800

5,14,38240

2nd quarter

4,77,02844

5,02,13520

5,27,24196

3rd quarter 4th quarter

5,0787986

5,27,24196

5,53,60405

5,33,27385

5,53,60405

5,81,28,425

Total Sales

19,83,57575

20,72,86921

2,17,65126

Final Profit/loss analysis:In this business we will take 12.5% extra as service tax with the purchase amount and we will offer products at normal market rate. Since we are purchasing bulk orders from wholesale dealers we are supposed to get 5-15% less from market value depending upon the product and the season. On an average we can take 10% less from the purchase amount to ease our calculation. So our profit model is described using base value as Rs-100 Order placed by customer Rs-100 Discount we are getting from wholesaler @10% of market value for bulk purchase: Rs-10 So our purchase value: Rs-90 Since we are taking service tax @12.5% from the customer on order value here our service tax is Rs: - 12.5 So actually we are getting (10+12.5) = Rs. 22.5 per 100 Rs. order value. So based on that model we calculated our gross profit directly from the order value (or sales value). Heads Turnover in lacs Add: 12.5% service Tax Gross Sales Gross Profit Less: Operational cost Less: Interest on term loan @12.5% Repayment of Loan Net profit 1st quarter 4,89,88,800 (+)61,23,600 5,51,12400 1,10,22480 (-)87,52,500 (-)1,28,625 (-)1,00,000 20,41,355 2nd Quarter 5,02,13,520 (+)62,76,690 5,64,90210 1,12,98042 (-)87,52,500 (-)1,28,625 (-)1,00,000 23,16,917 3rd Quarter 5,27,24,196 (+)65,90,524 5,93,14720 1,18,62944 (-)87,52,500 (-)1,28,625 (-)1,00,000 28,81,819 4th Quarter 5,53,60,405 (+)69,20,050 6,22,80455 1,40,13102 (-)87,52,500 (-)1,28,625 (-)1,00,000 50,31,977

So net profit after first year ending:-= Rs. 1, 04, 34848

Projected Balance sheet of the first financial year: Assets Fixed assets Less: Depreciation @ 5% Intangibles others Current assets Cash Accounts Receivable Inventory Total assets Rs. 16,10,00 0 (-)80,500 15,29,50 0 1,50,000 2,00,000 12,50,00 0 3,00,500 0 34,30,00 0 Liabilities Accounts payable Current borrowings Interest on loan@8% Provisions Total liabilities Rs. 1,00,000 30,00,000 2,40,000 50,000 33,90,000