ENTERPRENEURSHIP MANAGEMENT

ASSIGNMENT-2

Submitted by- AMIT KUMAR

Submitted To

Dr. Goutam saha

National Institute of Fashion Technology,

Ministry of Textiles, Government of India,
NIFT Campus, Opp. KIIT School of Management,

IDCO Plot no 24, Chandaka Industrial Estate,

Patia, Bhubaneswar - 751024

Website: www.nift.ac.in
 INDUSTRY ANALYSIS

The industry is famous for Petha, a type of sweet, which has satisfied the taste buds of both
domestic, as well as foreign customers.

The Rs 300 crores industry employs over 25000 people in around 650 micro units that manufacture
more than 30 varieties of Petha. It exports its product to almost all the North Indian states as well as
to foreign countries like the USA and the Middle East. A major chunk of the revenue is achieved
through sales of Petha to the tourists, who visit the historical city of Agra in large number each year.

The food processing industry is the only thriving industry which is well known among the traders
of other parts of the country. Despite all the popularity of the products, the industry is still not
growing at desired pace, said Subodh Sharma owner of Petha Sweets the industry I visited.

subodh listed the use of traditional technology that leads to a lot of dependence on labour, lack of
fine quality raw materials and lack of hygiene in processing units as the main reasons behind the
industrys sluggish growth. The use of modern technology will bring better and finer product, he
added.

Moreover, despite knowing that these products are very famous, the industrialists never bothered to
build a brand name and adopt modern marketing techniques

There is also a need of a suitable preservation technology to maintain the taste and quality of the
food items while exporting, We have decided to meet the local representative of the state
government and appeal them to help the industrialists to bring all these facilities to this sector,
 Market analysis:

Target market selection North India, Big Bazar.

Competitor Analysis Mio-amore, Large scale Units.

Marketing Problems

Competition

Rural entrepreneurs face severe completion of large sized organizations and urban entrepreneurs.
They incur the high cost of production due to high input cost. Major problems faced by marketers
are the problem of standardization and competition from large scale units. They face the
problem in fixing the standards and sticking to them. Competition from large scale units also
creates difficulty for the survival of new ventures. New ventures have limited financial resources
and hence cannot afford to spend more on sales promotion. These units are not having any
standard brand name under which they can sell their products. New ventures have to come up with
new advertisement strategies which the rural people can easily understand. The literacy rate among
the Problems Faced by Rural Entrepreneurs and Remedies to Solve It rural consumer is very low.
Printed media have limited scope in the rural context. The traditionally bounded nature, cultural
backwardness and cultural barriers add to the difficulty of communication. People in rural areas
mostly communicate in their local dialects and English and Hindi are not understood by
many people. It has been seen in the recent past that in spite of enough food stocks with
government warehouses, people are dying of starvation. This indicates a problem with the public
distribution system. The producers are not collective in their approach for marketing their
products because they are too widely scattered and uneducated.

MARKET PLAN:-

General Price with respect to quantity:

Per kg rates- Rs.65-70/kg

Per 5 kg- Rs.325

General whole sale price for more than 10kg- Rs600.

 Industry Requirements

MAN POWER NEEDED:

Manpower

No s. Salary/Month Total (In Rs.)

Particulars
1
2 6000.00 12,000.00
2 skilled-labour
Semi-skilled
3 4000.00 12,000.00
TOTAL 24,000.00

UTILITIES

The total power requirement shall be 25 HP whereas water required for process and sanitation
and other purposes shall be about 200-250 litres per day. The annual cost under this head at
100% capacity utilisation shall be around Rs. 50,000/-

CHOICE OF MACHINERY:

1. Punching machines:

Quantity: 01 units

No. of labours working on it: 01

2. Washing machine:

Quantity: 01 units

No. of labours working on it: 02-03

3. Motor:

Quantity: 01 units

4. Other knives of different size etc.

POWER, WATER, COAL:

Power:

Consumption: 400-450 units/month

Cost: Rs.2700-3200

Water:

Consumption: 200-250- litre/day

Cost: Rs.200/day

Coal:

Consumption: 60kg/day

Cost: Rs.600/day

Market

Goods are sold in Bazaar for Rs 60- 70 / kg

1 packet is of 500gms

Capacity is 2 quintals a day

 Swot Analysis:-

Threats of Substitutes.

Improvement in quality to national and international standards

Government policies (ministry of food processing industries, the food Processing training
centre)

Growth of Mall Culture

Poor Assistance

Power Failure

Capacity Utilization

Strengths

Almost all the entrepreneurs have business background

Easy availability of cheap labour

Comfortable availability of raw materials and other inputs

Installed/production capacity is more than sufficient.

Connected with main rail line and road for easy transportation

The sweet is affordable

It has many health benefits

Weaknesses

Low levels of modernization and up-gradation of technology

Low productivity

Product diversification is limited.

High dependence on commission agents for marketing.

Opportunities

Untapped potential in Rajasthan, Haryana, Maharashtra, Gujarat.

Scope of export to USA and Middle East countries.

Favourable government policies (ministry of food processing industries, the department of

small scale industries, the food processing training centre)

Crashed Scheme for Rural Development

Food for Work Program

Future prospects

India is a land of religious people and the turn of festivals gives impetus to sales.

The demand for petha is increasing every year as it pure and tasty.

The sweet is affordable.

It is known to give energy and keep the body cool in summers.

This can be used as medicine when it comes to tuberculosis's, heart weakness, body
heat, anemia and semen thinness.

It can also help in increasing ones weight.

 Conclusion
Finally, our conclusion is that entrepreneurship like many things in the society can be used
well or badly. The use depends on the motivation of each community and of how they
understand entrepreneurship. We think that national, regional and local governments should
develop policies in order to promote entrepreneurship in rural areas focusing on the
development of human capital and through that achieve territorial development. In this
way, entrepreneurship is a good and efficient tool to develop rural areas.

References

http://www.scribd.com/doc/26661470/Rural-Entrepreneurship-in-India