MAC Individual Project : Submitted by Shrikant Kejriwal

Individual Project: Business Plan and Cost Creation

Unique Juice Parlor: The juice parlor, located in the upcoming district market of in the Greater Noida area will boast of variety of juices and shakes. The parlor will provide a hangout zone for youngsters. In few years down the line the unique juice parlor will be expand to different areas in and around Delhi.

Executive Summary

MAC Individual Project : Submitted by Shrikant Kejriwal

The unique juice parlor will initially start with mainly three different product lines ie. Mix fruit juice, Vegetable juice and mango shake. In due course of time new product lines such as salads and other shakes will be added. After opening the first juice corner in Greater Noida, I plan to expand the juice corner to other parts of the National Capital Region. Vision To become No. 1 juice and salad provider in National Capital Region by 2016 Mission- To provide best in class juices and salads to all sections of society and to enable people to attain their health goals. Product Strategy Being a first generation entrepreneur, I will adopt a focused strategy and differentiate my offering from the run of mill juice corners.. To start with there will be three different product lines ie. Mix fruit juice, Vegetable juice and mango shake. In due course of time new product lines such as salads and other shakes will be added. Mix fruit juice will be available round the year while the other two being seasonal. Market Strategy Product mix involves product, price, promotion and placement. I plan to position the unique juice corner as a health hangout zone. My target customers will be youngsters who are health conscious. My juice corner will be air conditioned complex providing an ambience where youngsters can spend time together over a glass of juice. The Greater Noida Area has upcoming schools, colleges and multinational companies that provide an adequate market potential for my business. In afternoon hours, I will have the facility of happy hours when the price of the products will be sufficient to recover just the variable costs. Happy hour will primarily focus on school students. To promote the product, I will advertize through local newspapers, magazines and television channels. Human resource strategy The human resource will comprise of a combination of skilled and unskilled workers for the day to day operations. Gradually as expansion will take place, I will hire English speaking college interns both full time and part time.

Financial Plan

MAC Individual Project : Submitted by Shrikant Kejriwal

The financial plan depicted below consists of sales forecast for a year, cash flow statement, income statement and balance sheet for a year. I have aggressive expansion plans for next 5 years when I plan to open a new juice corner every year increasing the sales five fold in five years. Expected Sales are based on my interactions with the local juice corners in my area. I plan to open up a similar juice corner in Greater Noida shopping complex. The area has similar target population size. The detailed financial plan in shown below:

MAC Individual Project : Submitted by Shrikant Kejriwal

Apr'12 No. of Glasses Sales Revenue No. of Glasses Sales Revenue No. of Glasses Sales Revenue

May'1 2

Expected Sales Volume June'1 July'1 Aug'1 2 2 2 1800 0 6300 00 0 0 9000 3600 00 2100 0 7350 00 0 0 9000 3600 00 2100 0 7350 00 0 0 9000 3600 00

Sep'12

Oct'12

Nov'1 2 2100 0 7350 00 9000 3150 00 0 0

Dec'1 2

Jan'1 3 2100 0 7350 00 9000 3150 00 0 0

Feb'1 3

March' 13

Mix Fruit Juice Vegetable Juice Mango Shake

12000 42000 0 0 0 6000 24000 0

15000 52500 0 0 0 7500 30000 0

21000 73500 0 0 0 9000 36000 0

21000 73500 0 9000 31500 0 0 0

21000 73500 0 9000 31500 0 0 0

21000 73500 0 9000 31500 0 0 0

21000 735000 9000 315000 0 0

The shop will run from 6 am to 10 pm daily.

MAC Individual Project : Submitted by Shrikant Kejriwal

Costing per glass(Rupees per glass) - concise data Mango Mix fruit Vegetable Shake Juice juice Sale Price 40 35 35 Direct Material Cost 24 19 16

Direct Costing per glass(Rupees per glass) - Detailed information Mango Mix fruit Vegetable Shake Juice juice Sugar 1 0 0 Mango 9 0 0 Milk 12 0 0 Plastic Glass 1 1 1 Orange 0 5 0 Carrot 0 0 5 Other vegetables 0 0 8.8 Lemon 0 1 1 Masala 0 0.2 0.2 Pineapple 0 6 0 Pomegrenade 0 5.8 0 Kaju-Pista 1 0 0 Total Direct Material 24 19 16

MAC Individual Project : Submitted by Shrikant Kejriwal

Ingredients in different types of juices along with their costs per glass

Apr'12 Sales Direct Material Wages&Salaries Equipment Owner Capital Loan Shop investment License cost Advertising Electricity Maintenance & Repair Monthly Cash Flow Yearly installment paid Cum. Balance 660000 372000 -40000 -50000 120000 0 200000 0 300000 0 100000 -1000 -5000 0 292000 317000 -25000

May'12 825000 465000 -40000 0 0 0 0 0 -1000 -5000 0 314000

Expected Monthly Cash Statement June'1 July'12 Aug'12 2 99000 109500 109500 0 0 0 55800 615000 615000 0 -40000 -40000 40000 0 0 0 0 0 0 0 -1000 -5000 -1000 38500 0 38500 0 0 0 0 0 -1000 -5000 0 434000 0 0 0 0 -1000 -5000 0 434000

Flow Sep'12 109500 0 615000 -40000 0 0 0 0 0 -1000 -5000 0 434000 Oct'12 105000 0 543000 -40000 0 0 0 0 0 -1000 -5000 0 461000 Nov'12 105000 0 543000 -40000 0 0 0 0 0 -1000 -5000 0 461000 Dec'12 105000 0 543000 -40000 0 0 0 0 0 -1000 -5000 -1000 460000 Jan'13 105000 0 543000 -40000 0 0 0 0 0 -1000 -5000 0 461000 Feb'13 105000 0 543000 -40000 0 0 0 0 0 -1000 -5000 0 461000 March'1 3 105000 0 -543000 -40000 0 0 0 0 0 -1000 -5000 -1000 460000

314000

434000

434000

434000

461000

461000

460000

461000

461000

460000

MAC Individual Project : Submitted by Shrikant Kejriwal

Took 20 lakh from the bank at 10% per annum payable in 10 equal yearly installments and hence paid the first installment in April 2012 Spending Rs 1000 every month on advertising Spending Rs. 5000 on electricity every month

MAC Individual Project : Submitted by Shrikant Kejriwal

Annual Cash Flow FY13 Sales 12060000 Direct Material Wages&Salari es Equipment Owner Capital Long Term Debt Shop investment License cost Advertising Electricity -6498000 -480000 -50000 1200000 2000000 -3000000 -100000 -12000 -60000

Maintenance & Repair Yearly Cash Flow Yearly installment Cum. Balance

-3000 5057000

-317000 4740000

MAC Individual Project : Submitted by Shrikant Kejriwal

Projected Income statement FY13 Sales Cost of goods sold Wages&Salari es Advertising 12060000 -6498000 -480000 -12000

FY14 FY15 144720 173664 00 00 779760 935712 0 0 576000 691200 -14400 -17280

Electricity Maintenance & Repair Depreciation Long Term Debt Repayment Net Profit before tax Income Tax profit after tax

-60000 -3000 -5000 -317000 4685000 937000 3748000

-72000 -3600 -6000 380400 562200 0 112440 0 449760 0

-86400 -4320 -7200 456480 674640 0 134928 0 539712 0

MAC Individual Project : Submitted by Shrikant Kejriwal

Balance Sheet at the end March 2013 Assets Fixed Assets Shop License Equip less deprec Total Current Assets Cash Total 3680316 6825316 Total 682531 6 3000000 100000 Liabilities Owners Equity Long Term Debt Retained Earnings 120000 0 187731 6 374800 0

45000 3145000

MAC Individual Project : Submitted by Shrikant Kejriwal

Cost Creation/Process Improvement techniques Since it is a start up business there are a number of areas where I can apply different optimization and process improvement techniques. To start with I will try to implement Six Sigma and Just-in Time (JIT) techniques.

Both are famous techniques so I am just explaining where in value chain I will implement these techniques. JIT Raw materials for my juices are mostly fruits and vegetables. I have to ensure that customers get juices from fresh fruits rather than 2-3 days old fruits. So I want that every day I order a specific quantity of fruits so that I do not have to keep them for the next day. This will also reduce my inventory costs. The supplier will also be aware of my demand and can plan accordingly.

Six Sigma For me the Mumbai Dubbawala is the role model when it comes to error free and on time delivery. I will implement Six Sigma quality process so that each customer is taken care of. No customer should complain that he had ordered Mango juice but I served him mixed fruit juice. Moreover, waiting time for customers will be minimal.

MAC Individual Project : Submitted by Shrikant Kejriwal