EXECUTIVE SUMMARY

1.1 Key elements of business

Summary Highlights
There are a large number of small bakeries providing a variety of fresh

baked goods including biscuits that are produced and sold over the counter in many outlets in every Indian city and village. Biscuits produced are expected to be of a quality, freshness, taste and

well create awareness of the importance of a good diet in maintaining health and resisting
disease. It well increase awareness of the foods which are essential to make up a balanced. It includes adequate calories which are necessary in our daily routine.

Bakery owners indicated that biscuits were a rapidly growing market

and biscuit consumption was increasing rapidly locations. electrician trained for one month at the Vendors facility. should be written and made available at the start-up of the enterprises. laboratory, maintains proper supply of raw materials and finished products. A Quality Control manager should be trained to run a modest sanitation Manuals for operation, quality control, maintenance and sanitation Investment in training personnel is as important an investment as be Biscuits have a long shelf life and can be transported safely to remote

machinery. It is recommended that at least a plant operator, and at least a mechanic and

program, GMP and HACCP. Most often, this person performs production planning and

 chronic

An opportunity exists to help India who has a population that has

malnutrition in some regions by introducing biscuits made with super flour. The super flour mix may be soft enough to mix with local flour and produce good biscuits with high protein. The materials needed for the production of the biscuit and their approximate percentages are: Flour -- 50%, water--30%, sugar--2%, salt --2%, baking powder-2%, additives --14%. The materials or equipment design are: one mixer, one extruder and conveyor tunnel oven. Other equipments are sealing machines, water pump, filter, tables, pre-printed nylon etc. 1492.96 kg of dough is mixed per day and 1000 kg of biscuit is the target to be produced with a 10% increase to account for losses in the production line.

VISION

Biscuit Company has a vision to be Indias best biscuit experience. For us, being the best means providing outstanding and consistent quality, service and value so that we can make dining a memorable experience. We Desire to be in the pinnacle of the list, paying a firm attention, to the growth of the conglomerate. The value for life should always commemorate the path of growth. Our target is to attain the aspiration with global approach. Sammy Biscuits delivers the best returns to the society, consumers, employees and stakeholders. There is a spontaneous upgrade of standard for the associates. Leveraging the asset to enhance the Group synergy and becoming globally cutthroatis the chosen route to sustain growth and long-term attainment.

MISSION

Pure and healthy ingredients that help you feel your best everyday.

1.2 DESCRIPTION OF BUSCUITS AND TARGET MARKETS

WWW.SAMMY BISCUITS.COM CHAIRMAN SONU PANDER (154) MBA(IV)-C TYPE OF BUSINESS BISCUITS MANUFACTURING NAME OF BUSINESS SAMMY BISCUITS EXPECTED ANNUAL TURNOVER Rs.10,00,000/- (estimate) INVESTMENT Rs.60,00,000/Machinery*1 Rs.40,00,000(estimate) Tata Ace*2 Rs.10,00,000 Advertising Rs.20,000 pm Miscellaneous Expenses Rs.50,000 TARGET MARKET

CHILDREN 5-19 YRS)

YOUNGSTER/ADULT

SENIOR CITIZENS

(21-40)

(40 and Above)

CALCIUM AND TASTE

PROTIENS

CALCIUM

1) SCHOOL GOING CHILDRENS 2) COLLEGE DOING STUDENTS 3) HOSPITALS 4) OFFICES

OBJECTIVES OF BUSINESS PLAN

OBJECTIVES
To increase awareness of the importance of a good diet in maintaining health and resisting disease To increase awareness of the foods which are essential to make up a balanced diet Access to healthy foods at school, work, and in the community Knowledge about nutrition Healthy foods in their homes and daily environments Adequate calories for daily routine Benefits to the major systemsnamely, the cardiovascular, digestive, immune and nervous systems.

PEOPLE (MANAGEMENT TEAM)

MANAGEMENT TEAM

CHAIRPERSON

PRODUCTION MANAGER

FINANCE MANAGER

MARKETING MANAGER

CHIEF ENGINEER

R&D

ADMINISTRATION

ENVIRONMENTAL SCANNING OF BUSINESS

4.1 Industry Analysis

Overview : The total production of biscuits in India is estimated to be around 30 lakh MT, the organized sector accounts for 65% and the unorganized sector accounts for 35% of the total industry volume.

The organized sector is valued at above Rs 8000 crores. The biscuit industry is estimated to grow over 15-17% in the next few years. The per capita consumption of biscuits in India is 2.0 kg. India is ranked 3rd after US and China amongst the global biscuits producers. The export of biscuits is approximately 17% of the annual production, the export of sweet biscuits for year 2007-08 was Rs 145.93 Cr and for year 200809(April-Dec) was Rs 280 Cr, the major exporting regions were Haiti, Angola, USA, Ghana, UAE.

The imports are not significant amount as compared to the total consumption. The penetration of biscuits in urban and rural market is 85% and 55% respectively.

The Biscuit industry employs almost 3.5 lakh people directly and 30 lakh people indirectly.

The organized biscuit manufacturing industries annual production.

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4.2 Competitors Analysis

Brands :Major brands The Indian biscuit industry is dominated by major brands like Parle, Britannia, and Sunfeast. Also the category has strong regional brands such as Priya Gold-North, Cremica-North & West, Dukes-South and Anmol-East & North. Other popular brands Horlicks, Biskfarm-East, Rose-Andhra Pradesh & South, Sobisco-East and North East also launched in Andhra Pradesh and Madhya Pradesh., Nezone- North East, Bakewell. Market Share Breakdown The Indian biscuit industry is dominated by brands like Parle, Britannia and Sunfeast.

Consumption Pattern across Various Regions Consumption of biscuits is even across the regions

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2011 New Prospects in the Indian Biscuit Industry

GlaxoSmithKline Consumer Healthcare: Junior Horlicks Biscuits-toddler biscuit category.

PepsiCo India Launched biscuit brand Aliva, it will be produced by food division Frito Lay India.

United Biscuits (UK), worlds third largest biscuit company, is set to enter India market.

Shakti Bhog plans to enter biscuits segment.

Major Players

Britannia Industries Ltd. : Britannia Industries Limited (Britannia) is one of the largest biscuit manufacturing companies in India. The company is engaged in the manufacture of biscuits, rusks, cookies and cakes. Britannia operates in a single segment, foods including bakery products such as biscuits, bread, cakes, rusk, and dairy products. The company is headquarted in Kolkata, India and employs 2,358 people. Net sales for FY 2008-09 are Rs 3,112.2 Cr. For FY 07-08 biscuits recorded sales of Rs. 2,329.9 Cr. Key Products Tiger, Good Day, Bourbon, 50-50, Treat, Milk Bikis, Marie Gold, NutriChoice, Timepass, Little Hearts

Parle Products Pvt. Ltd : Established In 1929, company has factories in Mumbai, Bangalore, Bahadurgarh in Haryana and Neemrana in Rajasthan,

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Additionally, Parle Products also has 7 manufacturing units and 51 manufacturing units on contract. Company has about approximate market share of 30-35% of the total biscuit market. Parle-G accounts for the major volume turnover it accounts for approximately 80% of the total biscuit tonnage for the company. Key Products : Parle - G , Hide and Seek ,Krackjack ,Hide & Seek Milano ,Magix ,Digestive Marie ,Monaco ,Parle Marie ,Kreams ,Milk Shakti ,Parle 20-20 Cookies ,Golden arcs ,Nimkin ,Kreams Gold ,Chox ,Monaco Jeera

Surya Food & Agro Ltd : Manufacturing & selling of biscuits under brand Priyagold. Company has three plants located in Greater Noida, Lucknow & Surat. They also outsource some of our requirements to another plant located in Hyderabad. Capacities have reached 1, 50,000 MT p.a. Key Products : Classic Cream , Butter Bite ,Kids Cream ,Bourbon ,Big Boss ,Marie Lite ,Magic Gold ,CNC ,Cheese Cracker ,Snacks Zig Zag ,Don ,Coconut Crunch ,Cheez Bit Classic Salt ,Chatpata

ITC Ltd : In July 2003, ITC forayed into the Biscuits market with the Sunfeast range of Glucose, Marie and Cream Biscuits. Sunfeast with a current market share of ~10% is now clearly established as a credible third brand. Key Products : Sunfeast Milky Magic ,Sunfeast Marie Light ,Sunfeast Golden Bakery ,Sunfeast Dark Fantasy ,Sunfeast Dream Cream ,Sunfeast Snacky ,Sunfeast sweet 'n salt ,Sunfeast Nice ,Sunfeast Benne Vita Flaxseed Biscuits ,Sunfeast Special

Anmol Biscuits Ltd : Anmol is a popular brand of eastern & northern region, having manufacturing facilities in W.B & U.P.

Key Products : Lemon Mazaa , Funfill Choco Vanilla , Yummy - Milk Cream , Tip Top Kajoo Kurkure Masala, Coconutty , Thin Arrowroot , Marie,2 in 1, Butter Bake , Cream Cracker , Dil Khush , Dream Lite , E-Time , Funfill Orange , Funfill Rich Chocolate ,Golmol ,Jadoo ,Marie Time , Snackles ,Milk Made. 13

4.3 Opportunities and Reasons of Entry of Business

India Biscuits Industry is the largest among all the food industries and has a turn over of around Rs.3000 crores. India is known to be the second largest manufacturer of biscuits, the first being USA. It is classified under two sectors: organized and unorganized. Bread and biscuits are the major part of the bakery industry and covers around 80 percent of the total bakery products in India. Biscuits stands at a higher value and production level than bread. This belongs to the unorganized sector of the bakery Industry and covers over 70% of the total production. ndia Biscuits Industry came into limelight and started gaining a sound status in the bakery industry in the later part of 20th century when the urbanized society called for ready made food products at a tenable cost. Biscuits were assumed as sick-man's diet in earlier days. Now, it has become one of the most loved fast food product for every age group. Biscuits are easy to carry, tasty to eat, cholesterol free and reasonable at cost. States that have the larger intake of biscuits are Maharashtra, West Bengal, Andhra Pradesh, Karnataka, and Uttar Pradesh. Maharashtra and West Bengal, the most industrially developed states, hold the maximum amount of consumption of biscuits. Even, the rural sector consumes around 55 percent of the biscuits in the bakery products.

The total production of bakery products have risen from 5.19 lakh tonnes in 1975 to 18.95 lakh tonnes in 1990. Biscuits contributes to over 33 percent of the total production of bakery and above 79 percent of the biscuits are manufactured by the small scale sector of bakery industry comprising both factory and non-factory units. The production capacity of wafer biscuits is 60 MT and the cost is Rs.56,78,400 with a motive power of 25 K.W. Indian biscuit industry has occupied around 55-60 percent of the entire bakery production. Few years back, large scale bakery manufacturers like cadbury, nestle, and brooke bond tried to trade in the biscuit industry but couldn't hit the market because of the local companies that produced only biscuits. The Federation of Biscuit Manufacturers of India (FBMI) has confirmed a bright future of India Biscuits Industry. According to FBMI, a steady growth of 15 percent 14

per annum in the next 10 years will be achieved by the biscuit industry of India. Besides, the export of biscuits will also surpass the target and hit the global market successfully.

4.4 Limitations of Business

Huge competition Product differentiation Technology More advertisement expenditure for brand awareness Rising input costs

4.5 Strategies framed to overcome environmental Challenges

SAFETY 6.1.1 SANITATION In the biscuit industries, sanitation is the planned control of the production environment, equipment and personnel to prevent or minimize loss, product contaminationand condition offensive to the aesthetic senses of the discriminating consumer and to provide clean, healthful and safe working conditions. Some of the broad areas of sanitation concern are [1] GOOD MANUFACTURING PRACTICES: This implies orderliness and freedom from refuse in all areas. [2] RODENT ELIMINATION: It involves knowledge of rodent habits, recognition of problems and permanent control through structural changes, removal of harbourages and food supplies, and supplementary poisoning and trapping. [3] INSECT ELIMINATION: Insect elimination from finished products and ingredients in the factory requires recognition of serious or incipient infestations,

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identification and knowledge of habits and ecology. Control methods may involve changes in structure, equipment or process and safe use of insecticide chemicals. [4] MICRO-ORGANISMS: The type and significance of which vary with product and type of operation, must often be controlled by process and equipment change, cleaning and sanitising chemicals. Construction and maintenance of buildings and equipment are of major importance in sanitation. New units can be planned to simplify sanitation maintenance, reduce costs and eliminate the hazards of contamination and spoilage. Cleaning of plant and equipment involves careful organisation, training, work scheduling and the use of the best available equipment, methods and materials. The trend is to clean processing equipment in place, without dismantling. This is done by an automatic system that circulates and sprays cleaning and sanitizing solutions inside equipment in time sequence. Employment facilities, such as rest room, locker rooms, drinking water, eating facilities and working environment, must be well maintained for the comfort and safety of the workers if they are to remain happy and maintain production efficiency and product quality. Laboratory tests, of importance to the sanitation program in the biscuit plant, must be understood to be utilized to the best advantages. Water supply quality and plant distribution systems, as well as waste treatment and disposal, lighting and ventilation are often a part of sanitation. Inspection techniques tailored to the specific sanitation situation must be taught, learned and applied for efficient functioning and adjustment of the sanitation program. 6.1.2 WASTE MANAGEMENT This is a newer approach to cost-effective food-processing waste disposal. Through waste management, modifications are applied to biscuit plant operation and manufacturing processes. These modifications reduce the amount of solid and liquid wastes, recover more product and by-products, often reduce energy consumption and exhibit other benefits. In general, the principle is to convert waste liabilities into profitable assets. One major objective of waste management is to eliminate or at least lessen the

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dependence upon end-of-the-pipe sanitary engineering methods. This is achieved by reducing both the amount of waste solids generated and the volume of the waste water discharged. The following are examples of modifications, which can be made to biscuit plant operations: [1] Incorporating good manufacturing practices [2] collecting culls and other solid wastes into containers rather than discharging to the floor drain, [3] recycling water [4] reusing spent process water in another plant operation and [5] using less or no water in plant operations that formerly used a fair to a large amount of water. Good manufacturing practices that reduce water usage and waste require good personnel management and employee awareness of conservation practices. Such practices as needless use of water or overloading of containers, thereby causing spillage, should be discouraged. Recycling of water in the same plant operation can be achieved by treating spent process water with activated charcoal or sand filter or by ion-exchange columns, chemical treatment, pH adjustment, temperature adjustment, pasteurisation, or a combination ofthese and other methods. Counter currents water reuse systems can be established in many plant operations. For example, spent wash water can be used again to initiate wash down of dirty floors or to flume solid waste away from the process line. 6.1.3 HUMAN SAFETY Any organisation has a legal and moral obligation to safeguard the health and welfare of its employees and the general public safety is also good business; the good management practices needed to ensure safe operation will also ensure efficient operation. The term "loss prevention" is an insurance term, the loss being the financial loss caused by an accident. This loss will not be the cost of replacing damaged plant and third party claims but also the loss of earnings from lost production and lost sales opportunity. 17

Safety and loss prevention in biscuit industries can be considered under the following broad headings 1) Identification and assessment of hazards. 2) Control of the hazards. 3) Control of the process. Prevention of hazardous deviation in process variables (pressure, temperature, flow), by provision of automatic control systems, interlocks, alarms, trips together with good operating practices and management. 4) Limitation of loss. The damage and injury caused if an accident occurs; pressure relief, plant layout, provision of fire fighting equipment. 6.1.4 THRESHOLD LIMIT VALUE This is the most commonly used guide for controlling the long-term exposure of workers to contaminated air. The threshold limit value is defined as the concentration to which it is believed the average worker could be exposed to day to day, for eight hours a day, five days a week, without suffering harm 6.1.5 NOISE Excessive noise is a hazard to health and safety. Long exposure to high noise level can cause permanent damage to hearing. At lower levels, noise is a distraction and causes fatigue. Excessive plant noise can lead to complains from neighbouring factories and local residents. Due attention should be given to noise levels when specifying and when laying out equipment that is likely to be excessively noisy and such as compressors, fans, barriers and steam relief valves.

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MANUFACTURING & OPERATIONS

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5.1 Location
I am planning to locate my production facility in Bahadurgarh because of the lower wages and availability of raw material. Also because of the easy procurement of land. The wages of people in Mumbai and Delhi is very high as compared to Bahadurgarh. Also the disposable income in Bahadurgarh is increasing at a very high rate as Bihar is growing at a rate of 100% just because of the commendable work being done by Hooda Government.

5.2 Capacity of existing facilities

The proposed capacity of the Biscuit Factory is 250 kg/hr. The

estimated total cost of the equipment is approximately Rs. 40, 00,000 per packaged biscuit is Rs. 3 which is negligible. Biscuits have a long shelf life and can be transported safely to remote locations. The biscuit produced will be fortified. The added cost of fortification

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5.3 Plans for expansion

Stage 1 SAMMY BISCUITS Stage 2 BAHADURGARH

SAMMY BISCUITS

BAHADURGARH

DELHI

MUMBAI

KOLKATA

BANGALORE

Stage 3 Distributing our product all across India and Exporting into other countries like Srilanka, Bangladesh, Europe, etc.

Stage 4 Setting up a manufacturing facility abroad. PRODUCT MODIFICATION NECESSARY TO ADAPT TO LOCAL ENVIRONMENT

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MARKETING PLAN

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6.1 Distribution strategies

6.2 Pricing strategy

6.3 Promotion strategies

Objectives of Promotion: To ensure awareness, knowledge about the club to target customer. Next stage is to use promotional strategies to develop liking, preference and conviction for the concept. Last stage is to develop conviction and purchase for the selected target customer.

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Strategies:
To plan the message to be used & the tools to be used to spread the message; namely: Advertising Brochers, Radio,TV commercial(at Later Satge),Social

networking Websites(Cost Effective),Mobile Messages Public relations & publicity Launch Party Promotions & events Distribution of free samples (In Resturants ,

Hospitals, gym, School, Office and college canteens) Advertising Advertising strategies to be based upon The message to be communicated-Tag Line The established positioning of the product

Identify with media vehicles to be used to carry the message Translate all set goals in to an appropriate advertising message. Message shall address awareness building requirements of the plan Address attitude & actions required to be provoked in the target audience Public Relations & Publicity Tools to be used to implement an effective PR plan: News Releases Feature stories & interviews

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 Schedule press releases to tune with involvement of various media sources. Photos Speeches or appearances at seminars, conventions, etc. Community involvement Involvement in social responsibility activities

6.4 Product strategy 6.5 STP (segmentation, targeting and positioning)

Segmentation We have segmented the market on the following basis: SCHOOL GOING CHILDRENS COLLEGE DOING STUDENTS HOSPITALS OFFICES GOVENMAENTAL AGENCIES

Targeting

CHILDREN 5-19 YRS)

YOUNGSTER/ADULT

SENIOR CITIZENS

(21-40)

(40 and Above)

CALCIUM AND TASTE

PROTIENS

CALCIUM 25

Positioning Now the biggest challenge in front of us is how we are going to position our products in front of our segments. The positioning for Sammy Biscuits is: Best quality biscuits

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FINANCIAL DECISIONS

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7.2 Identification of Key Assumptions 1. Indian economy will be a growing economy.

2. There will be a more and more growth of industry. 3. There will be stable market conditions.

7.3 Current Sources of Funding

7.4 Tax Consequences of Business

Tax will be applied according to companies income tax slab 2012-2013.

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RISK IN BUSINESS

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Risk in business

A business risk is a circumstance or factor that may have a negative impact on the operation or profitability of a given company. Sometimes referred to as company risk, a business risk can be the result of internal conditions, as well as some external factors that may be evident in the wider business community. When it comes to outside factors that can create an element of business risk, one of the most predominant risks is that of a change in demand for the goods and services produced by the company. If the change is a positive one, and the demand for the offerings of the company increase, the amount of risk is decreased a great deal. However, if consumer demands for the offerings decreases, either due to loss of business to competitors or change in general economic conditions, the amount of risk involved to investors will increase significantly. Internal factors may also result in the development of significant business risk for the investor. Often, these are factors that can be identified and corrected. If flagging sales can be attributed to an ineffectual marketing effort or a sales force that is not performing up to expectations, making changes in the marketing approach or restructuring the sales effort will often result in minimizing the perception of business risk on the part of potential investors. The same is true if a companys manufacturing facilities are not operating at optimum efficiency. Unfavorable economic conditions and increased operating costs adversely affect results of operations and financial condition. Lower than forecasted demand.

Business risk Competitors Financial risk Non-achievement of break even in the expected time period can create a denting impact on the financial structure of the business. and imitators add to the business risk factor.

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IMPLEMENTATION OF SCHEDULE

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IMPLEMENTATION OF SCHEDULE

The business plan implementation puts theory into practice. If theory and practice do not come together, the plan will remain on the drawing board. The business plan must be implemented with due regard to deadlines set. The responsibility of each individual involved in the plan must be clearly delineated. TIME LINE

May 2012 Test feasibility

August 2012 Completion Of B.Plan

Oct 2012 Setting Up of Manf. Plant

Mar 2013 Revenue Gener

june 2012 Sales Projections

Sep 2012 Application for Bank Loan

Jan 2013 Selling and Promotion of

Jan 2014 Enter into New Products(Waffers)

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BIBLIOGRAPHY
WEBSITES www.google.com www.wikipedia.com www.scribd.com

MAGAZINES JOURNALS AND NEWSPAPERS. India today

BOOKS Kothari C R, Research and Methodology- Methods & Techniques, New Age International (P) Ltd., 2004

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