FEASIBILITY ANALYSIS MARKET ANALYSIS Consumption Trends Nowadays every people living in urban and rural are expecting

the natural product which is cultivated using natural products fertilizer mainly non-chemical mix. Due to chemical content lot of diseases are getting affected. By segment wise the customers are differentiated into low, middle and high class. We are selecting middle and high level people because the organic products are little costlier than the natural products where the low level people cant but with spending that much of money. The high level people are expecting those types of products. Past and Present Supply position Before 70s only organic manures are used for cultivation of agricultural products but during the later part of 80s due Green Revelation and introduction of many chemical fertilizers helps farmers to grow their crops quickly and get more profit but due to the excessive use of manure causes the soil to get contaminated and the crops which are cultivated causes diseases those who consume them. To overcome this problem organic vegetable shop emerged in India, which sells food items which are grown in traditional method. Market Segmentation The target customers include oriental vegetable markets demanding organic and semi-organic green vegetables, vegetable processors, and private individual buyers through direct selling and farmers markets. The company will continue to service the existing customers of the purchased vegetable farms. In its greens production the company will target virtually all main food outlets FINANCIAL ANALYSIS Investment outlay and cost of the project Explicit Initial outlays Shipping & Insurance Installation related costs Any required training fees or books and manuals for new equipment Salaries Marketing and promotion Any taxes and fees Any other required outlays Changes in working capital Inventory Cash balance : : 1,00,000 1,0,3000 : : : : : : : 20,000 5,00,000 2,000 1,70,000 10,000 15,000 40000

Salvage Value No salvage value since no old machines are sold. Tax Initial investment outlay Means of financing Owner 1 Owner 2 Loan From SBI Projected profitability Sales Direct Cost of Sales Other Total Cost of Sales Gross Margin Expenses Payroll Sales marketing and other expenses Depreciation Utilities Procurement Insurance Payroll tax Other Total Operating expenses Profit Before Interest and Tax EBITDA Interest Expenses Tax incurred Net Profit Break even analysis Our break-even analysis is based on the average of the first-year numbers for total sales by food served, total cost of sales, and all operating expenses. These are presented as per-unit revenue, per-unit cost, and fixed costs. We realize that this is not really the same as fixed cost, but these conservative assumptions make for a better estimate of real risk. 1st Year 50,50,000 37,00,000 6,00,000 43,00,000 6,50,000 5,00,000 10,000 0 60,000 50,000 5,000 0 0 6,25,000 25 ,000 25,000 50,000 0 (25,000) 2nd Year 60,00,000 46,50,000 6,00,000 52,50,000 7,50,000 5,00,000 15,000 0 60,000 70,000 5,000 0 0 6,50,000 1,00,000 1,00,000 50,000 40,000 5,000 3rd Year 65,00,000 48,00,000 6,00,000 54,00,000 11,00,000 5,00,000 15,000 0 60,000 90,000 5,000 0 0 6,70,000 4,30,000 4,30,000 50,000 1,72,000 2,08,000 : : : : : 40,000 10,00,000 2,50,000 2,50,000 5,00,000

The monthly break-even point is Rs. 50000

40000 30000 20000 10000 0 10000 20000 30000 40000

10000

20000

30000

40000

50000

60000

70000

Break even analysis Monthly revenue break even Assumptions: Average per unit revenue Average per unit variable cost Estimated monthly fixed cost TECHNICAL ANALYSIS Input Analysis

Rs 50000 Rs. 10 Rs. 6 Rs 10,000

It includes machineries for preservation and storage. The supply sources are from the farmers who cultivate their crops through organic manuring. Throughput Analysis It includes collection of only quality food products and a standard was set choose the vegetables that can be sold. Location of the shop is in Chennai in Egmore. The layout is Grid format which would help the customers to choose their products easily. Output Analysis This mainly focus on only the freshness and quality of the vegetable. This shop aims at getting ISO standard so it would maintain its quality in its products also.

ECONOMIC ANALYSIS We are planned to go for rented building because owning a building in Chennai costs high. We are procuring the goods from villages in Tamil Nadu. Subsidies are available for exporting the food products which would be made available in future. ECOLOGICAL ANALYSIS Likely damage caused by the project to the environment Since this project is mainly focuses on environment safety this would help in the preserving of natural resources. This project would avoid the usage of chemical fertilizers for cultivation of crops, this is very much essential in todays scenario and many NGO,s are helping this project. LEAGAL AND ADMINISTRATIVE The company will be started as a partnership venture and it consists of 2 partners and the remaining amount will be obtained as loan from the bank. The clearance and approval certificates are obtained from Bureau of Indian Standards. The Government of India has created a committee to develop National Guidelines for Organic Production. The National Programme for Organic Production (NPOP) provides an institutional mechanism for the production and export of organic food products, taking into account the requirements of international markets.

SOCIO- CULTURAL ANALYSIS There is huge response from the society for organic foods in positive manner. Since Tamil Nadu is basically an agriculture based state there will be no cultural threats for this business.