Buisness Plan

BUSINESS PLAN REPORT
ON

T@P India CHOCOLATE Pvt. Ltd.

Uummm..
In Partial fulfillment of
ENTREPRENEURSHIP PRACTICAL
CLASS -12

1

ACKNOWLEDGEMENT
I have taken efforts in this project. However, it would not have
been possible without the kind support and help of many
individuals and organizations. I would like to extend my sincere
thanks to all of them.
I thank my God for providing me with everything that I required
in completing this project.
I am highly indebted to the Teacher in Charge Mrs NAMITA
KHANDELWAL .for her guidance and constant supervision as
well as for providing necessary information regarding the
project & also for his support in completing the project.
I would like to express my gratitude towards my parents for
their kind co-operation and encouragement which helped me in
the completion of this project.
I would like to express my special gratitude and thanks to
industry persons for giving me such attention and time.
My thanks and appreciations also go to my classmates in
developing the project and to the people who have willingly
helped me out with their abilities.

2

T@P India CHOCOLATE Pvt. Ltd.
E-70/32,Shendra MIDC, Bilaspur
•

Executive Summary:
We are starting a business of manufacturing chocolates. Our primary focus is locally
manufacturing premium dark and milk chocolate, multigrain chocolate bar, liquid filled
chocolate bar. Our target market is whole chattisgarh & Maharashtra and premium
chocolates are exported outside the country. The customers to whom our products will be
supplied are retailers, wholesaler, trader in metro cities and local market. The location of
our manufacturing plant is Shendra, MIDC bilaspur.
We would be targeting the customer of children, middle age customers and our range of
premium chocolates are only for adults.

•

Uummm dark chocolates

•

Uummm milk chocolates

•

Uummmnutritious chocolate bar

•

Uummm premium liquid filled chocolate bar
The core competencies on which our company would be competing are taste, quality
and uniqueness of our chocolates. Our company would be partnershipfirm.The
marketing, Finance and Operational plans are shown in further business plan.
The marketing of the product will be based on product strategy, price strategy, and
promotion strategy. We also stated that who will be our target market, which kind of
strategic position and risk assessment we have to done, what will be our marketing and
sales planning in future and our competitor analysis. These all areas we try to cover in
our business plan.
For the Financial plan we covered our sources of capital, partner’s contribution in
capital, investment decision for future, break even analysis of our business for future,
and what would be our taxation policies are specified further.
Human Resource Planning includes points like, our organization structure, employment,
required man power and their salary/wage structure; also the recruitment policies are
involved.
Finally in technical terms in operations department we describe about our plant location ,
details of our land requirement, plant layout, machineries used, production capacity of
plant, our supply chain and quality control department.
At last but not the list this business plan is talk about all legal requirements like
licensing, environmental clearances, and necessary laws. Also CSR activities and
Community involvement.

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•

II. Description of Business
The company would be located at,

T@P Chocolate Limited,E-70/32, Shendra MIDC,
BILASPUR,CG.
PIN Code -495001

Contact number- 8149992273
Email ID – [email protected]
Fax - 0240587564

Our corporate office would be located inShendraMIDC,Aurangabad, Maharashtra. From
the next two years of firm establishment we have our branches in Maharashtra and then
in future we are planning to open our branches to metro cities like Delhi, Kolkata,
Mumbai and Chennai.

Our Company would be a partnership firm. Establishment of the firm includes three
owner partners having equal participation and involvement in to the firm named as,

Mr. ADARSH RAJ(Managing Director, Marketing and promotion)
Mr.AmolDeshmukh (Chief Finance Officer)
Mrs.PrernaChavan (Chief Executive Officer).

4

We introduce the various ranges of chocolates including,
•

Uummm dark chocolates

•

Uummm milk chocolates

•

Uummm nutritious chocolate bar

•

Uummm premium liquid filled chocolate bar

•

In the range of dark chocolate only rich cocoa and the percentage of the cocoa is more
than other one. The research proves that dark chocolate is good for the heart patients.

•

Our next type of chocolate that is milk chocolate contains more percentage of milk
which contain nutritious and more percentage of Lactose in it.

•

Nutritious bar is for those peoples who are more conscious about health and choosy. This
chocolate bar contains almond, walnut, cashew which make this bar more nutritious,
tasty and healthy.

•

Liquid filled chocolate bar this is the premium range of chocolate bar which we are tends
to export outside the country.

•

The brand name would be T@P CHOCOLATES.
Our vision is“to be the leading chocolate brand at international level.”
Our mission is“We seek to produce high quality chocolate products at competitive price
by modern technology to provide high satisfaction to the customer”

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III.Industry analysis and trend
Chocolate Industry in 2015 at a Glance
The chocolate industry offers a wide variety of opportunities for the small business
owner weathers economic recession well and is growing despite increased healthconsciousness and calorie counting. Growth will be driven by population growth as well
as expansion into new markets, product innovation and rising disposable income levels
leading to greater purchasing of premium offerings.
Chocolate is wildly popular for individual consumption, gift giving and celebrating. Due
to the dominance of large-scale production dynasties, franchises and small businesses
tend to focus on unique or specialty items or services. Unique chocolates may be from a
region famous for a particular technique, baked on-site or offer a different take on
tradition, while specialty services tend to focus on gift-packaging or delivery.
There are a number of trends within the chocolate industry that are driving growth; and
product innovation in 2011 brought a 16% increase in new product releases over 2010.
Increasing disposable incomes as well as changing public sentiments regarding health
and our global community are the driving forces behind this growth in innovation.
Premium and specialty items have shown strong growth over the long-term. During the
recession, there had been a shift away from premium items, but as the economy has
continued to recover, sales of premium items have taken the lead again. High-end
varieties can be baked on the premises, come from a renowned region or have a hidden
secret recipe. Seasonal and boxed assorted chocolates have been experiencing the fastest
growth, and sales are expected to expand 13% between 2012 and 2015. Holidays,
birthdays, retirement parties and more, chocolate is a versatile gift for many occasions.
Over the last several decades there has been increased understanding of what constitutes
a healthy diet, and there has been a dramatic increase in sales of sugar free, reduced fat
and reduced calorie offerings. Dark chocolate is known to lower both blood pressure and
cholesterol, and has nearly 8 times the number of antioxidants as found in strawberries.
A recent survey found that 35% of respondents believe dark chocolate to be healthier,
and it shows: sales grew 9% in 2009 versus 3.6% for the chocolate industry as a whole.
Fair-trade certified chocolate is another fast growing segment of the market, where
consumers pay a premium to ensure goods are produced in an ethical manner. As our
global community grows smaller with the communication revolution, it becomes
glaringly obvious that goods produced in developing countries are often subject to
horrible labour conditions are controlled by dominant industry participants. Fair Trade is
a social movement aimed to promote sustainability in developing countries, and
generally requires a higher price but conforms to higher social and environmental
standards.
There are a wide variety of chocolate industry opportunities available for the franchisee,
based on location, clientele, and affluence. Franchises exist in storefront or online
variety and for shipping or hand delivery; specialty stores provide high-end treats and
bulk candy stores offer large quantities of varying quality!

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Gift-Giving

Like flower shops, these businesses often focus on
themed chocolates and delivery

Bulk Candy

Offering a wide assortment of candies of all types
(including non-chocolate), these stores often charge
by the pound...or half pound!

Premium
Unique

or

High-end, specialty items, imports from areas with
historical processes

On-Site
Baking

That smell....advertising in the air!

Ethical

Free trade or other, quality products produced
process and delivered in a certifiably ethical and/or
environmental manner.

The chocolate industry has proven both resilient during the recession and innovative to
meet changing consumer tastes and criteria. Growth will remain strong as chocolate
gains in popularity in new markets and the global economy powers ahead. Healthier
varieties are gaining market share and discerning consumers are willing to pay a
premium for ethical production, but through it all, chocolate demand continues to grow.
THE CHOCOLATE INDUSTRY IN INDIA
The chocolate industry in India has a size of 20000 tones and is worth about Rs
400crores. The chocolate market has been growing by nearly 35 %. However there has
been some slowdown in the last two years. The chocolate market is predominantly urban
with coverage of 95 %. The sales volume has decreased by 5% in the last year and the
chocolate market had declined with the average consumption coming down by 25% from
16000 tonnes to the current level of125000 tonnes. Chocolate consumption in India is
extremely low. Per capita consumption is around160gms in the urban areas, compared to
8-10kg in the developed countries. In rural areas, it is even lower. Chocolates in India are
consumed as indulgence and not as a snack food. A strong volume growth was witnessed
in the early 90s when Cadbury repositioned chocolates from children to adult
consumption. The biggest opportunity is likely to stem from increasing the consumer
base. Leading players like Cadbury and Nestle have been attempting to do this by value
for money offerings, which are affordable to the masses. Cadbury, a subsidiary of
Cadbury Schweppes is a dominating player in the Indian chocolate market with strong
brands like Dairy Milk, Five Star, Perk, and Gems etc. Dairy milk is the largest
chocolate brand in India.

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•

Size of the chocolate industry:-

The Indian Chocolate Industry has come a long way since long years. Ever since 1947
the Cadbury is in India, Cadbury chocolates have ruled the hearts of Indians with their
fabulous taste.
The size of the market for chocolates in India was estimated at 30,000 tonnes in 2008.
Currently, the Indian chocolate market is worth around ₹ 4,500 crore. The Indian
chocolate industry is registering a compound annual growth rate of 25 per cent at
present. The demand for chocolates in India has clocked about 35% rise as against last
year primarily in urban areas due to the rising shift to chocolates from traditional mithai
around the festival season. Bars of moulded chocolates like Amul, milk chocolate, dairy
milk, truffle, nestle premium, and nestle milky bar comprise the largest segment,
accounting for 37% of the total market in terms of volume. The chocolate market in
India has a production volume of 30,800 tonnes. The chocolate segment is characterized
by high volumes, huge expenses on advertising, low margins, and price sensitivity. The
count segment is the next biggest segment, accounting for 30% of the total chocolate
market. The count segment has been growing at a faster pace during the last three years
driven by growth in perk and Kit-Kat volumes. Wafer chocolates such as Kit-Kat and
perk also belong to this segment. Panned chocolates accounts for 10% of the total
market. The chocolate market today is primarily dominated by Cadbury and Nestle,
together accounting for 90% of the market.
•

Growth:

The consumption is impulse led and driven largely by convenient price point. As
economic growth creates more disposable income with more people the consumption is
expected to increase.The Indian chocolate industry may surpass the ₹ 7,500 crore mark
by 2015 with the help of growing consumption in the urban and semi-urban areas,
according to the industry chamber Associated Chambers of Commerce and Industry of
India (ASSOCHAM).
•

Vulnerability:
To overcome the barrier and to explore new area for our market we are not start up with
huge amount of infrastructure, costs our machinery would be taken for lease for first few
years of business.Marketing of our products would be on the basis good quality and
healthy products to provide a competitive advantage. We also introduce new ranges of
chocolates in our company with the help of research and development department
probably in next two years of our establishment of firm.
Promotion of our product will be within a nation and outside a nation; because there is
high competition at international market to overcome the treat of promoting our brand at
international level we will use the outsourcing and overcome that barrier.

•

Seasonal Factors:
We produce a seasonal line of chocolates which changes each year for season and each
major holiday, thereby making the packaging collectable. Our Premium range of
chocolate also have new flavours introduced primarily for major holidays and festivals
like Diwali, Rakshabandhan, Valentine’s day, Christmas. We can introduce our new

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range of chocolates in stated holidays and festivals with fancy art packaging and
according to demand of the customers.
•

Technical Factors:
Chocolate-lovers may soon find their chocolate dearer if the problems plaguing the
industry continue. Raw material costs have risen by more than 20 % in the last few
years. Although retail prices have not increased, a rise in input costs will force the
manufacturers to consider a price hike. The Bigger players in the country such as
Cadbury, which leads the ₹ 2,500 crore chocolate markets in India with a share of 72%,
will find it easier to absorb the surge in input costs as it has products at various price
points in the market, said industry experts. Cadbury may also opt for a price hike, albeit
marginal, if the current trend continues. The Indian Chocolate Industry’s current Margin
range between 10 and 20%, depending on the price point at which the product is placed.
The input costs in India are under check owing to the 24% decline in the prices of sugar.

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•

Supply and Distribution:
Chocolate needs to be distributed directly, unlike other FMCG products like soaps and
detergents, which can be sold through a wholesale network. 90% of chocolate products
are sold directly to retailers.
Distribution, in the case of chocolates, is a major deterrent to new entrants as the product
has to be kept cool in summer and also has to be adapted to suit local tropical conditions.
Channels of distribution:
Manufacturer

Wholesaler

Wholesaler
Stockiest /C&F Agent
-Company owned

Retailers
•

Grocery/ Kirana stores

•

Medical stores

•

Gift Shops

•

Sweet marts/Mithai Shops

•

Supermarkets

•

Airport shops/Railway stations/Bus stands

•

Paan shops

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•

Financial Consideration:
After economic liberalization in 1991, major changes have occurred in food habits,
partly on account of rise in gross domestic product (GDP) growth and higher purchasing
power in the hands of the middle-class representing a third of the total population.
Availability of chocolate products has also exploded. A study had projected that sales of
the Indian chocolate industry would rise from $125/$130million in 1998 to $175/$180
million by the year 2000 and to $450 million by the year 2005which actually happened
irrespective of various negative factors. By this we can see rising demand of the
chocolate product in Indian market.

•

Anticipated (expected) Changes:
1. To help chocolate industry consultants, chocolate manufacturers and dealers to align
their market-centric strategies.
2. To obtain research based business decision and add weight to presentations and
marketing materials.
3. To gain competitive knowledge of leading players.
4. To avail 10% customization in the report without any extra charges and get the
research data or trends added in the report as per the buyer's specific needs.

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IV. Marketing Plan
A. Product Strategy:
India has more than 50% of its population below the age of 25 and more than 65% below
the age of 35.
Age Structure: Group- I 0-18 years: 38 % (0.48 billion)
Group-II 19-35 years: 27 % (0.34 billion)
Group-III 36-65 years: 30 % (0.38 billion)
Group-IV 66 above: 5.3% (0.06 billion)
We have made separate plan for separate age groups.
• We will be targeting the first three groups covering 94.7 % of population.
Our strategy is purely penetration into Indian chocolate market.
• We would like to target the population with the same products. No new product.
• In our marketing plan we have suggested collaboration with many institutions&
organization's. We are also outsourcing to prepare marketing plan for college students.


Marketing Plan for Age group 0 to 18
Total Population: 0.483 billion
Studying in school: 0.241 billion
We have traditions of distributing sweets to all school students after Flag hosting on 15th
August (Independence Day) & 26th January (Republic day).
We can tie up with the schools as a distribution chain.In future this can be extended to
Birthday’s & Children's day.
Uummm has more nutritional value for children's than any other sweet. That we can say
because we added grain granules in our nutritious bar which children’s prefer not to eat
as whole.



Marketing Plan for Age group 19 to 35
Total Population: 0.343 billion
Best way to catch this population on internet (on Facebook or any other social website).
Most people wishes birthday to their friends & family member on Facebook.
We propose our company tie up with Facebook, So one week before birthday Facebook
will give the reminder.
“Do you want to send chocolates on your friend’s birthday?”

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All the Cadbury chocolates options will appear.
Select the Chocolate, Gift wrapping & Birthday message for your friend & place the
order online. The order will be received in district distributor system; same will be
packed & dispatched by Courier at the delivery address.
Birthday with Chocolates.


Marketing Plan for Age group 36 to 65
Total Population: 0.381 billion
This is majorly working population of India.
This population can be targeted on Birthday at office, for Gifting, on marriages (with
Marriage invitation card & after marriage), on festivals, special occasions & many more
occasions.
Indian Chocolate Industry is a unique mix with extreme consumption patterns, attitudes,
beliefs, income level and spending
Understanding the consumer demands and maintaining the quality will be essential
So we think that bringing online sales(through Facebook) & increasing the institutional
sales(in unique way) would bring prosperity and increase the sales of Uummm’s as a
whole again resulting in the goodwill of the company.

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B. Price Strategy


Products & Segments Uummm’s Segments Product Pack size Rate Value



Uummm 9.2 Gram Rs. 5 Value



Uummm Shots 18.6 Gram Rs. 10 Value



Uummm 17 Gram Rs. 10 Value



Uummm 38 Gram Rs. 22 Mid-Tier



Uummm Crackle 42 Gram Rs. 35 Mid-Tier



Uummm Roast Almond 42 Gram Rs. 35 Mid-Tier



Uummm Fruit & Nut 42 Gram Rs. 35 Premium



Uummm Silk 60 Gram Rs. 55 Premium



Uummm Silk Fruit & Nut 60 Gram Rs. 55 Premium



Uummm Alcoholic Chocolate 100 Gram Rs. 955 Super Premium



Uummm Silk 145 Gram Rs. 125 Super Premium



Uummm Silk Fruit & Nut 145 Gram Rs. 125 Super Premium



Uummm Orange Peel 145 Gram Rs. 125

C. Promotion Strategy
After settlement of our business we will use following techniques for
promotional strategy,
•

Local news paper

•

Local TV channel

•

Local radio Station

•

Hoardings in crowded areas

•

Through pages and account on Social Networking Sites (Facebook & Twitter)

•

We can also use mouth to mouth promotion strategy.

14

D) Target Market
Our target market will be divided into three parts that are,
•

Upper class

•

Middle class

•

Lower middle class
That mean all age groups are our target market and we will try to cover them all by
fulfilment of their requirements and demands.
E) Strategic Position & Risk Assessment
Marketing strategy for niche market
Niche "Our niche market would be the children and young generation as chocolate is
mostly liked by children and youngsters."

•

Attractive packing: Our Company will focus on packaging to attract children.

•

Good quality and healthy chocolates are the factors on which marketing will be done.
E1) Company Strength
The core competencies on which our company will compete are:

•

Taste
By consuming the “Uummm Chocolates” flavour begins to fill your mouth the moment
the chocolate begins to melt on your tongue it feel like a rich dark or milk chocolate and
it tastes like pure chocolate rather than cocoa powder. At first there is so much pleasure
in tasting the chocolate, it may be difficult to focus on the specifics of flavour. First
perception the consumer would describe for the chocolate as “chocolaty” and “Yummy”.

•

Quality
The raw ingredients are of finest quality and also care is taken of the production process;
roasting and crushing the cocoa beans and mixing the cocoa paste with sugar and other
ingredients such as milk. Yummy chocolates are high quality chocolates as they are
shiny brown, break cleanly and are smooth. A yummy chocolate has the sufficient
quantities of cocoa butter and vegetable fat so that it does not become greasy or sticky at
ambient room temperature.

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G) Competitor Analysis
G:1) Competitor Analysis
COMPAN
Y

FOUNDED IN

BRAND PORTFOLIO

Nestle

1860s

Kit Kat, Smarties, Wonka

Ferrero

1940s

Rocher, Raffaello, Kinder, Tic Tac, Mon
Cheri, Nutella

Mars

1911

Bounty, Galaxy, Mars, Snickers, Milky
Way, Wrigley’s, M&M’s etc

Amul

1945

Milk chocolate, Fruit & Nut chocolate

Hershey’s

1894

Hershey’s milk chocolate, Kisses, Pot of
gold, Milk duds, Reese’s, Icebreakers
etc

Perfetti Van
Melle

2001,
when
Perfetti and Van
melle merged

Alpenliebe, Chlormint,
Happydent, Mentos

ITC

2002(confectioner
y segment)

Minto and Candyman

Parle

1929

Melody, mango bite, poppins, kismi
toffee, mazelo, xhale, éclair, golgappa,
parlelites, orange candy

Cadbury

1948
Market)

(confectionery products)

(Indian

Centerfresh,

Dairy Milk, Dairy Milk fruit N nut,
Dairy Milk Shots, Dairy Milk Roasted
Almond, Dairy Milk Silk

G:5) Barriers to Entry
Barriers to entry
•

Huge start-up costs

•

Ensuring good quality products to the customers

•

High Level of competition from the well established brands

•

To keep price of the product low, as it is a price sensitive market
Overcoming the barriers to entry
To overcome the barrier of huge start-up costs our machinery would be taken for lease for
first few years of business.
Marketing of our products would be on the basis good quality and healthy products to
provide a competitive advantage.

16

Distribution channels
Our products would be distributed through channels like wholesalers, retailers and our
own sales force and our distribution channel shown in previous pages.
Proposed Location
For our business,
Bilaspur,chattisgarh.

the

proposed

location

17

would

be

in

Shendra

MIDC,

IV. Financial Plan
Financial Management is a operational activity of business i.e., responsibility for
obtaining the fund & effective utilizing the fund for effective operation that is called
financial management.
Objectives of Financial Management
• Acquiring sufficient fund
• Proper utilization of fund
• Increasing profitability
• Maximize the firms value
1. Raising of Capital:
2. Owned Fund :
Contribution of partners in Capital
We Raise fund for requirement of Large Capital investment by our Own by using
investment by our three partners as below.
Mr.ADARSH RAJ
12,00,000.00/Mr.AmolDeshmukh
8,00,000.00/Mrs.PrernaChavan
12,00,000.00/•

Borrowed Funds
We also raise fund by using borrowed fund from IDBI Bank and from by
using the Project Finance & Export Finance it is not sufficient fund for our establishment
of organization and we took Hand Loan from friends and relatives.
Name of Bank – IDBI Ltd.
IDBI bank is the development bank who provides loan to Industries development
purpose and they Create segment by using the type of industry like SME. MSME, Large
Industries etc., we approach to IDBI Ltd. Aurangabad Branch and mate to the Project
Finance Manager Mr.Ranmale and inform them about our business plan, location,
Partners & capital requirement and asks about procedure of loan proposal. He suggests
for Industrial Finance and the scheme. After discussing with him, he tells us about a
priority sector unit (Export Oriented Unit and MSME) and available the scheme to
finance and facilities provided by bank. How to make a project proposal for loan and the
requirement documents needed. After submitting the Loan proposal negotiates the interest
rates and tenure fixed. He gave an assistance to provide loan to our project proposal with
required 50 % of own fund and 50% loan provided by bank because we do not have any
collateral security. The lean were reserved with IDBI bank

.
Sr.

Party Name

Amount

18

Interest

Tenure

No.
1

2
3

IDBI Ltd. (Secured Loan)
Export Finance (Rate certain 3,000,000.00
to fluctuated EXIM Policy)
Term Finance
5,000,000.
00
Hand Loan* (Unsecured 1,650,000.00
Loan)
Owned Fund
3,200,000.
00
Total Fund

Rate

(in Month)

11.00%
13.00%

06 Months
(Max. 364 Days)
48 Months

-

-

-

-

12,850,000
.00

*Hand Loan –Advance from customers taken from friends and relatives and suppliers. We
make them channel partners (Distributors) and export partners and bank assurance.
•

Working capital decisions (use of funds)
A business will incurs expenditure in undertaking production before recovering this-plus,
it will hope a surplus representing profit –in sales revenue. Overhead expenses also have
to paid working capital is the finance available to a business to meet its day to operational
costs in pursuit of profitable activity
There are three working capital issue on a business would to need to make a decision
 Whether to offer discounts to debtors for prompt settlement of accounts
 Whether to dispose of slow moving stock at reduced prices, and by how much to
reduce them.
 Whether to purchase by cash or credit, allowing for discount which might be on
offer.
Cash & Credit:
We provide discount and cash credit to our supplier. By giving them 2% discount on
the advance bill amount from suppliers in form of RTGS. And 1 % discount on the date of
delivery we offer 30 day as the credit period to local supplier.And the term for foreign
customer the cash credit decision on the hand of export partners, and bank assurance.

•

Investment Decisions (Fund flow / Cash flow)
Investment decision related to the careful selection of asset in which fund will be
invested by the firm. Investment decision can be long term or short term.
Purpose: The purpose of investment decision is to investment is to invest financial
resources for setting up new business or expansion an existing business.
The following two type of decision are taken:
• Capital budgeting decision i.e., how much amount to invest in long term asset.
• Working capital decision i.e., how much amount invest in short term asset.

Capital Budgeting:

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Capital budgeting is the technique of making decision for investment in long term proposals.
It is a process of deciding whether or not to invest the funds in a particular proposal, the
benefit of which will be available over a period of time longer than one year.
Type of Capital Investments

Project Analysis:
If the project preliminary screening suggests that the business is suitable, a detailed analysis
of the project is done.

• Break even analysis
Break even analysis is an important technique to trace the relationship between
cost, revenue and profit at the varying levels of output or sales.
In the break even analysis the break-even point is located at the level or output or sales at
which the net income or profit is zero. At this point, a total cost is equal to total revenue.
Hence the break-even point is the no-profit-no-loss zone.
Formula:
Break Even Point = Fixed Cost/Sales -Variable Cost*100
= 3757800/21539743-955260*100
= 0.18*100
= 18%

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In Amount = 1591839*18/100
= 286531

•

Profitability RatiosNet Profit:
Net profit ratio is a popular profitability ratio that shows relationship between net
profit after tax and sales. It computed by dividing the net profit after tax by net sales.
Net Profit Ratio =
Net Profit after Tax/Net Sales*100
= 1591839/21539743*100
= 7.39%
ROI

•

= Profit after Tax/Investment*100
= 1591839/12850000*100
= 12.39%

Getting subsidies, concessions by government
a) Foreign Trade Policy: According to Foreign Trade Policy for 2009-14 it includes
extension of zero duty
b) Exemption : Exemption from custom duty on import of capital goods raw
materials, consumable, spares etc.,
c) *Goods Manufacturing in SEZ are excluded excisable goods – As per SEC. 3(1)
of Central Excise Act 1944. (It is no duty leviable)
d) Reimbursement of Central Sales Tax paid on domestic purchase.
e) Supplies from DTA to SEZ units treated as deemed to be export
f) Facilities to realise and repatriate export proceeds with in 12 month
g) Commodity hedging by SEZ unit permitted
h) No Separate documentation required for custom and EXIM policy.
i) Exemption on Stamp Duty.

•

Taxation
a) Partnership Deed As per Indian Partnership Act 1932.
b) Minimum alternate Tax: not applicable for domestic export
c) Registration of Central Excise
d) Registration of Sales Tax
e) Registration of The Income Tax Act 1961 (PAN No.)

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V. Human Resource:

•

Organization structure – (as per PVT LTD Structure)

22

•

Total number of employees required at different levels:

•

Total numbers of skilled plus semi-skilled employees required in our
establishmentwould be 20 people. Who has knowledge, skill and ability to handle and
supervise technical work as well as helps in marketing. The person should handle the
critical situations and solve the problem on that level or to report to the immediate senior
officer.

•

There is not more than 9-10 unskilled workers required on the field, because the
machineries are fully automated and there is less work to do manually on the production
line. Also the unskilled workers are to be trained to handle all machineries to avoid
defects and improve quality of the product.

•

Sources of recruitmentThe type of the recruitment here to be followed is external.
Because would be newly established firm and internal recruitment is not possible. So
that there are some ways to recruit people as per requirement of the organization,

•

Advertising—Advertising in newspapers and periodicals. The company needing
manpower advertises details about the job, requirements, salary perquisites, duties and
responsibilities etc. It will give appropriate candidate for the senior post.

•

Employment Agencies— we can give the numbers of required man power to the
agencies or the consultancies to find the right candidate for the position.

•

Gate Hiring-For the sake of providing employment to the unskilled workers this method
can be used. This involved blue collar workers or daily wages workers.

•

Educational Institution— direct recruitment from colleges and universities is prevalent
for the recruitment to higher staff. This can be beneficial to hunt new and fresh talent.

•

Leasing— In seasonal production contract workers could be hire to adjust short term
fluctuations in personnel needs, the possibilities of leasing personnel for some specified
period may be considered.

•

Labour Contractors— we can also recruited workers through contractors who are
themselves the employees of this organisation.

23

•

Salary of workers & employees: (Cost on HR estimation and its assessment w.r.t.
return is to be done)

•

The pay given to the skilled persons are on the basis of their level and for the position.
So we pay our semi-skilled as well as skilled employees 8,000 to 10,000 per month
salary respectively.

•

According to The Minimum Wages Act, 1948 the recent basic wage must be 6,500Rs.
And we offered 7,000 Rs. Per person to our workers. We will place contract based
labours and we will make changes in our pay structure as per changes made by central or
state government.

•

How to attract, motivate and retain employees towards organization:
We would attract new talent for our organization by various methods like, by offering
safe working conditions, employee benefit programme, emphasizes the benefits such as
flexible working hours etc. these plans are for the middle and functional level .For top
level there are different requirements such as,We introducing creative motivational
plans, give them opportunity to explore new area in research and development and give
them chance to expand existing business by putting new ideas to the firm development.
Also employees seeking the job which having new challenges these all methods we
would apply to attract employees as well as to the labours in our organization.
The motivation plans for the employees it isnecessary to keep their moral high and our
intention is to create awareness among them so they would be held accountable to their
work. Motivational plans would boost to the firm and led to enhance organization
capability to work. The motivational plan includes, create an environment where great
people thrive, held ownership, encourage new ideas, ask for suggestions and give power
to decision making at that level, design flat organization structure,Create open
communication between employees and management.
We are not looking forward to only hire people in our organization but to motivate them
to work with us for the longer period of time. Retaining the motivated employees is hard.
To retain employees and to avoid separation of employees we further include the
retention plan such as,Offer a competitive benefits package, including health and life
insurance and a retirement plan, offering non-monetary rewards.We will make sure
employees know what's expected of them and how they can grow within your company.

24

VI. Operational Plan
Plant Location
Our manufacturing unit will be located at “E-70/32, Shendra MIDC, Aurangabad431136.”
To export our product we use the Central Government transport facility named as Inland
Container Depot which is located at Daulatabad, Aurangabad, Maharashtra.
Labour is easily available since there are many such labour contractor available in
Aurangabad. We will get skilled and unskilled labour as per our need. Technical people
are also available easily to monitor the quality and consistency of our product.
Details of Land Requirement
The land required for our Chocolate manufacturing company is 5,500 sq.ft.it is on rental
basisand the rent would be 35,000 Rs./month.
Plant Layout

25

VI.4.Details of machinery and sources of machineries
The product will be manufactured by Full Automatic Chocolate Production Line
(QH200), with this system, baking the moulds, depositing, forming etc. series procedure
can be achieved automatically. It's available to depositing all shape of chocolate. Such as
liquid filled-inside, nuts, grainsetc. chocolate. Since our products are plain as well as
nutritional grains are added this machine is appropriate.
The machines are supplied by,

Chocolate City, Fort, Mumbai.


Phone: 022 - 23459349



Mobile: 9323877672



Contact Person: Abdulm Aziz Ansai



Area: Fort
chocolate-city4u2 yahoo.com



Email: [email protected]

The machineries which we have selected can produce 100-300 kg chocolates per hour. It
can produce chocolates in different shapes .It can help to reduce cost of chocolates
mould. By Producing Chocolates in different shapes we can attract all segments of
market.
The production capacity is fully automated as mentioned as follows, so the need of
personnel is comparative less than other semi-automatic machine. The detail description
of the machineries is as follows,

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1. Chocolate Production Line:

This machineModel NO.:QJZ-II especial for chocolate pouring and depositing including
mechanism, electrical controlling. The production flow including mould heating,
pouring, vibration, cooling, discharge, convey and so on with automatic operation. Suit
for producing pure chocolate, centre filled chocolate, double colour chocolate. Granule
mixing pouring chocolate, smoothly surface, weighing correctly is a good machine for
producing high quality chocolate. The capacity of the machine is producing 200kg per
day.
2. High-Speed Automatic Pillow Packing Machine:

Full-automatic packager is applicable for packing oblong, Quadrate, round, oval and
shaped candies. It functions rapid computer programming and photoelectric tracing,
frequency control for stable and free running, reversible outsize candy sorting disc
enables empty package rate to get optimal effect, excellent performance, simple
operation and high-speed package of the whole machine.
The packaging speed (granile/m) ≤ 800
The dimensions (length-width-height) – 3000×1350×1450mm

27

VI.5.Production capacity of the plant
Our production capacity of the plant would be necessary to get the cost of equipment (bean
cleaner, roaster, cracker, grinder, refiner/conch - not including
(tempering/depositing/moulding/wrapping) down to 400 kg/day in order to really jumpstart
the growth of the small batch craft chocolate "industry" here in the India. Furthermore, we
think that at that price point it will be necessary to produce at least 1 ton per month of
finished chocolate in order to be able to break even.
Capacity utilization
The maximum production capacity of our plant would be 400 kg/day and we will try to
utilize optimize resources and our capacity of utilization is 300 kg/day.
VI.6. Sources of raw materials (venders)
1. Sugar supplier:
 SAIKRUPA SAKHAR KARKHANA LTD.
Devdaithan,
Tal. Shrigonda,
Dist. Ahmadnagar.
Contact no. - 02487 / 258287 / 258289


GANGAMAI SUGAR INDUSTRIES LTD.
Tapadia Terraces,
II floor, Adalat Road.
Dist. Aurangabad.
Pin code – 431001 (M.S.)
Contact no. – 0240 / 332572 / 2333933

2. Full cream milk powder:


GOVIND MILK & MILK PRODUCTS PVT.
Shanti Nagar Society, Shop No. 4, Building No. 2,
Ramtekdi, Hadapsar ,
Pune - 411013,
Maharashtra, India.
Dist. Pune
http://www.govindmilkproducts.com/

3. Vegetable oil or fat:


Harihar Oil Traders, Mumbai
No. A/ 10, Nanddham Industrial Estate, MarolMaroshi Road,
Marol, Andheri East,
Mumbai - 400059,

28

Maharashtra, India
http://www.indiamart.com/harihar-oil/
4. Cocoa, powder, mass and butter:


BM Foods, Mumbai
No. 305, SaiSharan Apartments, N.C. Kelkar Road,
Shivaji Park, Dadar,
Mumbai - 400028,
Maharashtra, India
http://www.indiamart.com/bm-foods/

5. Emulsifiers and flavours:
 Garden Flavours Cop. Pvt. Ltd.
GARDEN HOUSE, W-275, M.I.D.C., RABALE,
NAVI MUMBAI - 400701,
Maharashtra, India

29

Production
Manufacturing process
Chocolate production is highly sophisticated computer controlled process with much of
the new specialist machinery. Machines like as chocolate cooling tunnels, enrobing
machines, coating machines, moulding machines.
Chocolate processing: Production flow of chocolate
Cleaning
When seeds arrive to factory they are carefully selected and cleaned by passing through
a bean cleaning machine that removes extraneous materials. Different bean varieties are
blended to produce the typical flavor of chocolate of particular producer. Then the bean
shells are cracked and removed. Crushed cocoa beans are called nibs.
Roasting
The beans are then roasted to develop the characteristic chocolate flavor of the bean in
large rotary cylinders. The roasting lasts from 30 minutes to 2 hours at very high
temperatures. The bean colour changes to a rich brown and the aroma of chocolate
comes through.
Grinding
The roasted nibs are milled through a process that liquefies the cocoa butter in the nibs
and forms cocoa mass (or paste). This liquid mass has dark brown colour, typical strong
smell and flavor and contains about 54% of cocoa butter.
Cocoa Pressing
Part of cocoa mass is fed into the cocoa press which hydraulically squeezes a portion of
the cocoa butter from the cocoa mass, leaving "cocoa cakes". The cocoa butter is used in
the manufacture of chocolates; the remaining cakes of cocoa solids are pulverized into
cocoa powders.
Mixing and Refining
Ingredients, like cocoa mass, sugar, cocoa butter, flavorings and powdered or condensed
milk for milk chocolate are blended in mixers to a paste with the consistency of dough
for refining. Chocolate refiners, a set of rollers, crush the paste into flakes that are
significantly reduced in size. This step is critical in determining how smooth chocolate is
when eaten.
Conching
Conching is a flavour development process during which the chocolate is put under
constant agitation. The conching machines, called "conches", have large paddles that
sweep back and forth through the refined chocolate mass anywhere from a few hours to
several days. Conching reduces moisture, drives off any lingering acidic flavours and
coats each particle of chocolate with a layer of cocoa butter. The resulting chocolate has
a smoother, mellower flavour.

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Tempering and Moulding
The chocolate then undergoes a tempering melting and cooling process that creates
small, stable cocoa butter crystals in the fluid chocolate mass and is deposited into
moulds of different forms. Properly tempered chocolate will result in a finished product
that has a glossy, smooth appearance.
Cooling
The moulded chocolate enters controlled cooling tunnels to solidify the pieces.
Depending on the size of the chocolate pieces, the cooling cycle takes between 20
minutes to two hours. From the cooling tunnels, the chocolate is packaged for delivery to
retailers and ultimately into the hands of consumers.

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VII. Legal Aspects:
Legal formalities:
•

We could get DIN (Director Identification Number) which is printed, signed, and sent to
Ministry of Corporate Affairs.

•

Get a TAN (Tax Account Number) for income taxes from Income Tax Department’s
Assessing Office.

•

We must be registered enrol with Establishment Act (State/Municipal), Shops, and
Office of Inspector.

•

We should also get food process order certificate from ministry of food processing
industries and also doing as business certificate required for our chocolate industry.
Factories Act, 1948
This is applicable to enterprises where the number of employees is:
 Ten or more and where power is used; or
 Twenty or more and power is not used.
The enterprises covered under the Act are required to keep certain records:
 Muster Roll
 Workers Register
 Overtime Register
 Advance Register
 Register for Fine
 Register for Deductions
 Register of Wages
 Register of Accidents and Dangerous Occurrences
 Bond Inspection Book
 Register of Cleaning and White Washing
 Record of Examination of Parts of Machinery
There is another Act known as Shops & Establishment Act which is applicable
to shops and business undertakings employing 5 or more persons.
Employees Provident Fund &Miscellaneous Provisions Act, 1952
The Act applies to every factory or establishment employing 20 or moreemployees. It,
however, exempts a factory or establishment for an initial periodof 3 years from
commencement of business if the number of employees is morethan 50 and for an initial
period of 5 years if the number of employees is lessthan 50. The minimum contribution
payable by the employer is 12% of the basicsalary contribution and Dearness Allowance. The
employee also makes anequal contribution. The Act, however, does not specify a maximum
contribution.

32

Employees’ State Insurance Act, 1948
It provides benefits to employees in case of sickness, maternity and employmentinjury and
for certain other matters in relation thereto. The Act also provides forpayment of
contributions by employers and employees at the rates specified inthe First Schedule of the
Act. The existing rates of employee’s contribution varyaccording to wages and the
employer’s contribution is exactly double the employee’scontribution. It shall apply to
factories employing 20 or more people.
Payment of Wages Act, 1936
This Act is applicable to factories and establishments, which come under TheFactories Act.
The act is restricted in its application to the class of workerswhose wages range upto
Rs.1,600/- per month.
Minimum Wages Act, 1948
The employer has to pay minimum wages to employees in certain scheduledindustries. At
present the minimum wages act is applicable in 44 scheduledindustries. The recent minimum
wages for 2013 are 6,500 Rs./month for an individual person.
The Indian Partnership Act, 1932
The Indian Partnership Act, which was amended in 1932, provides for rulesrelating to
foundation of legal partnership. It states the rights and duties of thepartners amongst
themselves and outside and lays down rules regarding thedissolution of partnership.
Central Excise (CE)
The Central Government is empowered to levy excise on all articles manufacturedin India
except alcohol, alcoholic preparations and narcotics. Theliability to duty starts the moment a
new commodity is manufactured. Thereare, however, certain exemptions granted to SSI units.
However, there is noCE on fruit and vegetable products.
Sales Tax
Sales tax is tax levied by state and centre. Tax charged by state is called LSTor Local Sales
Tax and tax charged by Centre is known as CST or CentralSales Tax. The latter is charged
when goods move out of a state.
The Income Tax Act, 1911
The Act governs the levy of income tax in India. It defines various terms andexpressions and
states the liability of a person to pay income tax. The ratesand pattern of taxation, however,
are changed from time to time.
Pollution Control Act, 1955
The State Air and Water Pollution Control Board is the body responsible forimplementing
this Act. The act is applicable to all kinds of industry.

33

SPECIFIC LEGALITIES: (FOOD PROCESSING)
In addition to the general legal requirements, there are a few legal requirementsthat are
specific to Food Processing Industries. A food processingenterprise has to comply with
several compulsory legal requirements.
Implementation of these norms with regard to Small and Medium Enterprisesis relatively
stringent while cottage and household level units sometimes tendto compromise on such
stipulations. These laws include:
a. Prevention of Food Adulteration Act (1954): This is the basic statute to protect
consumers against supply of adulterated food. The Central Committee for Food
Standards ‘under the Directorate General &Health Services Ministry of Health and
Family Welfare has specifiedthe standards.
b.

Milk and Milk Products Order (MMPO): regulates milk and milkproducts production
in the country. The order requires no permissionfor units handling less than 10,000
liters of liquid milk per day or milksolids up to 500 tpa.

c. Standard of Weights and Measures (Packaged Commodities) Rules,1977: lay down
certain obligations for all commodities in packedform with respect to their quality
declaration. The Directorate ofWeights and Measures under the Ministry of Food and
Civil Suppliesoperates these rules.
d.

Export (Quality Control and Inspection) Act, 1963: is operated by theExport
Inspection Council and under this act many exportable commoditieshave been
notified for compulsory pre-shipment inspectionunless specifically requested by the
importer not to do so.

e. Voluntary Standards: are regulated by organizations involved withvoluntary
standardization and certificates systems concerning qualityparameters in food. They
are the Bureau of Indian Standards (BIS)and Directorate of Marketing and Inspection
(DMI). The food processingindustries sector as a whole involves other legislations.
f.

Oils, De-oiled Meal and Edible Flour Control Order 1967 andVegetables Products
Control Order, 1976: control the production anddistribution of solvent extracted oils,
de-oiled meals, edible oil seedflours and hydrogenated vegetable oils (vanaspati).

34

VIII. Community Involvement and Social Responsibility
Our company focuses on, including all stakeholders in order to identify their company values
and guide their CSR metrics and decision making.
Since we are publishing our first CSR report, we conducted surveys and asked for comments
from external and internal stakeholders, such as consumers, employees, investors, business
partners, communities and local governments, policy makers, and NGO’s around the Local
areas and assess the need required for performing CSR activities.
Through this stakeholder engagement, we decides on top priorities for mid-long term
strategic CSR initiatives. These priorities included ethical sourcing, global competitiveness,
talent management, child labour, food safety, and consumer health. In addition, the company
has adopted a CSR framework to build upon each year and guide strategic planning. The
foundation and pillars of the framework include the marketplace, environment, workplace,
and community.
We are planning to tie up with NGO’S in future, we would like to provide stationary to the
Primary School students who belongs to the poor family. Our selected location will be
‘Swami Vivekananda School’ which is located at Ganesh Nagar, Aurangabad.
We are supposed to targeting both working conditions (in particular, trying to eliminate child
labour) and educating farmers. The aim is to educate younger farmers so that the cocoa
consuming firms have partners to work with for the next few decades.
The aim is to educate younger farmers so that the cocoa consuming firms have partners to
work with for the next few decades.

35

IX. Exit Plan
Our corporate office situated in bilaspur. We are planning to capture every
urban and rural market of India within one year.
As per our growth strategy we aimed to build our company head office in
four main metro cities – Delhi, Mumbai, Kolkata, and Chennai in next two
years. On third year we will switch our corporate office to GOA and we are
thinking to build another head office in UK.

36

THANK YOU

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