BP
Business Plan
COMPANY PROFILE
Company name :- CoCofresh agro.
Place :- 7th milestone, Mumbai highway Road, Belgaum (Kar)
Company Business- The project is based on the
processing of "coconut water with flavors the packaging of
the same in tetra packs add sell them.
We are into this business to earn money, generate
employment and ensure quality prices to farmers and
quality product to customers.
Why this location- Belgaum
Few distance from major cities like Mumbai 500,
Bangalore 502, Hyderabad 515,Panji 150 km.
We benefit coconut farmers in belgaum district.
We buy coconuts from them at a competitive
rate, process ,pack and sell them.
Karnataka is the third largest coconut producing
state, growing 1.16 billion nuts a year.
Maharashtra produce the finest quality alphonso
mangoes in India which is border area of
belgaum.
MISSION
To be a leading producer of coco water based
beverages using the natural essence of coconut and
hygienic process, dynamic leadership and
commitment to our partners and stakeholders.
VISION
To be Indias Premier coconut water Company,
offering nutritious & superior quality tasting drinks
to its consumers. By 2016 we aim to achieve 15% of
Market Share, and while doing it we would be the
best in terms of consumer value, customer service
and consistent and predictable growth.
Why coconut water?
Widely acknowledged as a health drink
Whole year demand in market.
Less wastage and more usage.
Possibility for expansion into other products.
Eco friendly product no environmental harm.
Numerous medicinal properties in
coconut water
Excellent tonic for the old and sick
Effective in the treatment of kidney and urethral stones
Kills intestinal worms, small pox, chicken pox, measles,
etc.
Good for feeding infants suffering from intestinal
disturbances.
Oral rehydration medium Keeps the body cool.
Uses of Coconut
Domestic Uses
Industrial Uses
Problem statement
The tender coconut sellers have a monopoly on the
market.
Farmers do not receive adequate compensation.
Mostly manual labor are used.
Mediator make huge profits from market
Solution
Our business plan is to purchase coconuts from the direct
farmers at a competitive price.
Utilize the rest of the profits to further reinvest in the
business.
As much as grow the firm we provide bigger returns to
farmers.
Use automated machinery and advance equipments
Opportunity & Market
Branded fruit beverage market in India is estimated to be
worth Rs. 1,200 crores( drinks and juices combined)
Fruit drinks as a category is growing at 18-20 per cent,
carbonated soft drinks are growing at 6-8 per cent.
Unique type of health drink
More than 90 % of sales occur through the unorganized
route - juice centers, street corner shops and so on.
Target Market
Primary Market: Kids Fond of Fruit Juice (fond of mango, strawberry)
Teens More experimental
Youth Experimental and more buying power
Working People
Housewives
Elderly people
Secondary Market
Travel Industry
Airlines, Railways and Local Transport Systems
Recreational
Movie Theatres, Malls, Amusement Parks.
School, Colleges
Hotels, Restaurants, Bars etc.
Market Segmentation
Variables Used for Segmentation
1) Geographic variables
2) Demographic variables
3) Psychographic variables
4) Behavioral variables
Market Segmentation Variables
G e o g ra p h i c : To serve both domestic and international
customers.
Metropolitan Cities, major towns of the states.
Density of Area:- Urban, Semi-urban,ExUrban Rural.
Climate :- Northern, Southern .
Country Region :- East,West,North & South.
D e m o g ra p h i c : Age all age group
Gender Both Male and Female
Family size - doesnt matter
Education - doesnt matter
Income middle & high end consumer
Occupation student, working and retired people
nationality/race doesnt matter
language - doesnt matter
Market Segmentation VariablesConti
Market Segmentation VariablesConti
Psychographic:Personality
NO
Lifestyle
YES
Value
YES
Attitude
YES
Behavioral: Benefit Sought
Product Usage Rate
Brand Loyalty
Profitability
Income Status
Occasions
Attitude towards Product .
Market Segmentation VariablesConti
Users perceive coconut water as a healthy
drink.
Users drink coconut water as a refreshing
alternative to carbonated drinks.
Users willingly spend on products related to
health and lifestyle.
Users enjoy coconut drinks not only as a means
of healthy life, but as an intrinsically enjoyable
activity in itself.
Behavioral
Current Competitors
Jain Agro foods Pvt. Ltd Bangalore
(Karnatka).
Sakthi Coir Export Coimbatore
(Tamil Nadu).
Pure Tropic Manufacture Tiruppur
(Tamil Nadu).
Sri Jayalaxmi foods Ahemedabad(Gujarat).
Noval Products Pondicherry
SWOT Analysis
Strength
Adequate availability of raw
materials.
High consumer retention rate .
Natural Product.
Weakness
Seasonal availability of fruits
Brand acknowledgement
Late entry into the market.
Opportunity
Participation with a growing
industry.
Competitive advantage over
carbonated soft drinks.
Success of incredible India
campaign
Champions league in 2011
Threats
Unstable government policies
Rising Global Warming
MARKETING MIX
PRODUCT
COCO FRESH is a 100 percent coconut
water which will be produced and marketed
by Coco Beverage Ltd. We prefer tetra pack
because the product is aseptically packed
and it retains the original flavor and
tastes and hence you feel like drinking the
water directly from the coconut.
BRAND NAME: COCO FRSEH.
COCO FRESH in three flavors :Coco FRESH ( Normal )
Coco FRESH ( Sugar Free )
Coco FRESH ( Mango Flavors )
All Above Three are available in 180ml &
560ml with Tetra Packaging .
PRODUCT LIFE CYCLE
Our product lie in Introduction Period of PLC
Low sales
High costs per customer
Negative profits
Innovator customers
Few competitors
Objective: To create awareness of product
Offer a basic product
Selective distribution
Awareness dealers and early adopters
Induce trial via heavy sales promotion
P R O J E C T L O C AT I O N
In the initial phase we would be outsourcing
coconut processing & packaging of Coco
Beverage .
Coconut would be purchased from Belgaum unit
& Processing & Packaging would be outsourced
to local producer.
Mode of Transport: Road Transport.
Place
Distribution Channel
Belgaum
Delhi
Mumbai
Within region
PRICING
As a new comer our pricing strategy is to introduce
our products in the market at lower prices so as to
create huge demand in the market and then compete
with other competitors.
As we come up in the demand, we will increase our
prices and will provide more efficient and affordable
drinks .
P r i c i n g Po l i c y
Apply the concept of providing quality product at optimum price
Provide Lucrative discounts, deals and schemes
Adopt sales oriented objective
Have one price policy to maintain a goodwill among customers.
Pricing strategy
Factors
The factors which will contribute to the success for
our juice demands in market:
High consumer retention rate
Price, a competitive advantage
Natural product
Great distribution network
Well Health product
P ro m o t i o n a l I d e a s
Change beverage choices in vending
machines at school and collages
Assess the financial impact on school
and collage profits
Identify approaches to promote
healthful beverage choices and
maintain profits for schools and
collages
Long-Term Strategy
Contd.
Change advertising on beverage
vending machines
Change beverage choices to water,
sports drinks, and 100% fruit juices
Collect and submit monthly financial
data from school and collages
Provide a Rs. 3,000 incentive per
school in the project
Tie Up Promotion
Strategy
We will tie up with PVR cinemas to
increase our branding.
Will be putting up vending
machines in every PVR cinemas
like Bangalore, Gujarat,
Hyderabad,
Maharashtra, MP, NCR, Punjab,
UP
Facebook :Creating a community on facebook.
Creating a Fan page on facebook.
Twitter :Regular tweets on product and event
updates will ensure interactivity.
Web Marketing
Coconut Water
Processing of CoCofresh
TetraPacked Water
Processing
Transported by rented truck
Farmer
Warehouse
(Belgaum)
Transport and Processing
Processing
Tetrapack
(Belgaum)
Unit
Transported
by rented
truck
Stalls
and
Shops
Purchase
Customer
H.R. Practices
Training & Development
Skills required
Salaries
Safety
Standard Working Environment
Financial Data
Form of business
: Partnership
Total cost of the project
Plant Capacity
Means of financing
: Processing of 5000 liter per day
: 50% through partners capital
50% through loan
Major raw material
: Coconut
Total number of workers : 25
Depreciation rate
: WDV @ 15%
Average DSCR for 3 years : 2.93 times
Total cost of the project
Details of the land and Building
Particular
Sq. ft
Rate/sq.ft
Total
Building
5000
1500
7500000
Warehouse
3000
1500
4500000
Total Land Required
8000
1500
12000000
Annual Demand estimation for 100% capacity
Product (Tetra pack)
Pure coco fresh (180 ml)
Rate/unit
18
No. of unit Amount in Rs.
5,00,000
90,00,000
Coco fresh mango (180 ml)
20
7,00,000
1,40,00,000
Pure coco fresh (560 ml)
50
5,00,000
2,50,00,000
Coco fresh mango (560 ml)
55
6,00,000
3,30,00,000
Coco sugar free (560 ml)
65
7,00,000
4,55,00,000
30,00,000
12,65,00,000
Total Sales
8200 units per day
Raw material estimation for 100% Demand capacity
Product category Units
Total ml
Total Ltr
180 ml
5,00,000
90000000
90000
180 ml
7,00,000
126000000
126000
560 ml
5,00,000
280000000
280000
560 ml
6,00,000
336000000
336000
560 ml
7,00,000
392000000
392000
Annual Total ltr required
12,24,000
Annual Total coconuts required
61,20,000
From 10,000 coconut you get 2000 ltr
Projected Profit and Loss A/c
Particulars
Sales / Receipts
Manufacturing Expenses
Raw materials
Wages
Repairs & Maintenance
Power & Fuel
Other Overhead Exp.
Depreciation
Production Cost
Administrative Expenses
Salary
Telephone Exp.
Stationery
Marketing & Dist. Exp
Packaging and designing
Miscellaneous Exp.
Administration Cost
1st Year
10,12,00,000
2nd Year
10,75,25,000
3rd Year
11,38,50,000
5,05,60,000
24,00,000
5,06,000
50,60,000
50,60,000
27,67,500
6,63,53,500
5,37,20,000
25,50,000
5,37,625
53,76,250
53,76,250
23,52,375
6,99,12,500
5,68,80,000
27,00,000
5,69,250
56,92,500
56,92,500
19,99,518
7,35,33,768
26,40,000
1,01,200
6,07,200
80,96,000
75,90,000
50,60,000
2,40,94,400
27,72,000
1,07,525
6,45,150
86,02,000
79,69,500
53,76,250
2,54,72,425
29,10,600
1,13,850
6,83,100
91,08,000
83,67,975
56,92,500
2,68,76,025
Conti
Partner's Remuneration
14,40,000
14,40,000
14,40,000
20,000
20,000
20,000
EBIT
92,92,100
1,06,80,075
1,19,80,206
Interest on Term Loan @ 14%
13,05,500
11,07,999.33
8,82,848
6,49,951
6,49,951
6,49,951
EBT
73,36,649
89,22,124
1,04,47,406
Tax @ 30%
22,00,994
26,76,637
31,34,222
EAT
51,35,654
62,45,487
73,13,184
Prilim. Exp. W/OFF
WC Loan @ 12%
Particular
LIABILITIES
Partner's capital
P&L A/c
Term Loan
WC Loan
Total
ASSETS
Gross Fixed Assets
less: Depriciation
Net Fixed Assets
Priliminary Expenses
Debtors
Inventory
Cash in Hand/Bank
Total
PROJECTED BALANCE SHEET
1
2
1,47,41,258
51,35,654
79,14,281
54,16,258
3,32,07,452
1,47,41,258
1,13,81,142
63,06,061
54,16,258
3,78,44,719
1,47,41,258
1,86,94,326
44,72,691
54,16,258
4,33,24,534
1,84,50,000
27,67,500
1,56,82,500
80,000
37,46,505
49,45,152
87,53,295
3,32,07,451
1,56,82,500
23,52,375
1,33,30,125
60,000
40,14,113
50,34,354
1,54,06,127
3,78,44,719
1,33,30,125
19,99,518
1,13,30,606
40,000
45,49,328
52,12,759
2,21,91,840
4,33,24,533
Particular
Net Profit (EAT)
Add:
1)Depreciation
2)Prilim. Exp. W/Off
3)Interest on:
Term Loan
WC Loan
Term Loan received
WC Loan received
Partner's capital
Total
Less:
Fixed assets Invest.
Repay of TR Loan
Intrest paid on W.C
Current Assets
Debtors
Inventory
Total
Opening Balance
Surplus
Closing Balance
PROJECTED CASH FLOW STATEMENT
1st Year
2nd Year
3rd Year
51,35,654
62,45,487
73,13,184
27,67,500
20,000
23,52,375
20,000
19,99,518
20,000
13,05,500
6,49,951
93,25,000
54,16,258
1,47,41,258
3,93,61,121
11,07,999
6,49,951
0
0
0
1,03,75,812
8,82,848
6,49,951
0
0
0
1,08,65,502
1,85,50,000
27,16,219
6,49,951
0
27,16,219
6,49,951
0
27,16,219
6,49,951
37,46,505
49,45,151
3,06,07,826
0
87,53,295
87,53,295
2,67,607
89,202
37,22,980
87,53,295
66,52,832
1,54,06,127
5,35,215
1,78,405
40,79,790
1,54,06,127
67,85,712
2,21,91,840
OTHER KEY INFORMATION
Particular
1st Year
2nd Year
3rd Year
Debt service coverage ratio
2.58
2.91
3.29
Interest coverage ratio
4.75
6.07
7.82
Break even points in %
66.44%
62%
59.59%
Return on investment
34.83%
42.36%
49.61%
Excel Sheet
