B

Business
Plan

C
FRES
H

Manendra Shukla

COMPANY PROFILE
Company name :- CoCofresh agro.
Place :- 7th milestone, Mumbai highway Road,
Belgaum (Kar)

Company Business- The project is based on

the processing of "coconut water with flavors
the packaging of the same in tetra packs add sell
We
them.
are into this business to earn money, generate
employment and ensure quality prices to farmers and
quality product to customers.

Why this location- Belgaum

Few distance from major cities like

Mumbai 500, Bangalore 502,
Hyderabad 515,Panji 150 km.

We benefit coconut farmers in

belgaum district.

We buy coconuts from them at a

competitive rate, process ,pack and
sell them.

Karnataka is the third largest

coconut producing state, growing
1.16 billion nuts a year.

Maharashtra produce the finest

MISSION

To be a leading producer of coco water

based beverages using the natural
essence of coconut and hygienic
process, dynamic leadership and
commitment to our partners and
stakeholders.

VISION

To be Indias Premier coconut water

Company, offering nutritious &
superior quality tasting drinks to its
consumers. By 2016 we aim to achieve
15% of Market Share, and while doing
it we would be the best in terms of
consumer value, customer service and
consistent and predictable growth.

Why coconut water?

Widely acknowledged as a health drink
Whole year demand in market.
Less wastage and more usage.
Possibility for expansion into other
products.
Eco friendly product no environmental
harm.

 Numerous medicinal properties in

coconut water
Excellent tonic for the old and sick
Effective in the treatment of kidney and
urethral stones
Kills intestinal worms, small pox, chicken pox,
measles, etc.
Good for feeding infants suffering from
intestinal disturbances.
Oral rehydration medium Keeps the body cool.

Uses of Coconut
Domestic Uses

Industrial Uses

Problem statement
The tender coconut sellers have a

monopoly on the market.

Farmers do not receive adequate

compensation.
Mostly manual labor are used.
Mediator make huge profits from market

Solution
Our business plan is to purchase
coconuts from the direct farmers at a
competitive price.
Utilize the rest of the profits to further
reinvest in the business.
As much as grow the firm we provide
bigger returns to farmers.
Use automated machinery and advance

Opportunity & Market

Branded fruit beverage market in India is
estimated to be worth Rs. 1,200
crores( drinks and juices combined)

Fruit drinks as a category is growing at 1820 per cent, carbonated soft drinks are
growing at 6-8 per cent.

Unique type of health drink

More than 90 % of sales occur through the

Target Market
Primary Market:

Kids Fond of Fruit Juice (fond of mango, strawberry)

Teens More experimental
Youth Experimental and more buying power
Working People
Housewives
Elderly people

Secondary Market

Travel Industry
Airlines, Railways and Local Transport Systems
Recreational
Movie Theatres, Malls, Amusement Parks.
School, Colleges
Hotels, Restaurants, Bars etc.

Market Segmentation

Variables Used for Segmentation

1) Geographic variables
2) Demographic variables
3) Psychographic variables
4) Behavioral variables

Market Segmentation Variables

Geographic: To serve both domestic and international

customers.
Metropolitan Cities, major towns of the s
Density of Area:- Urban, Semi-urban,ExU
Climate :- Northern, Southern .
Country Region :- East,West,North & Sout

Demographic: Age all age group

Gender Both Male and Female
Family size - doesnt matter
Education - doesnt matter
Income middle & high end consumer
Occupation student, working and retired
people
nationality/race doesnt matter
language - doesnt matter

Market Segmentation Variables

Conti

Market Segmentation Variables

Conti

Psychographic:Personality

NO

Lifestyle

YES

Value

YES

Attitude

YES

Behavioral: Benefit Sought

Product Usage Rate
Brand Loyalty
Profitability
Income Status
Occasions
Attitude towards Product .

Market Segmentation Variables

Conti

 Users perceive coconut water as a healthy

drink.
Users drink coconut water as a refreshing
alternative to carbonated drinks.
Users willingly spend on products related
to health and lifestyle.
Users enjoy coconut drinks not only as a
means of healthy life, but as an
intrinsically enjoyable activity in itself.

Behavioral

Current Competitors
Jain Agro foods Pvt. Ltd Bangalore
(Karnatka).
Sakthi Coir Export Coimbatore
(Tamil Nadu).
Pure Tropic Manufacture Tiruppur
(Tamil Nadu).
Sri Jayalaxmi foods Ahemedabad(Gujarat).
Noval Products Pondicherry

SWOT Analysis
Strength
Adequate availability of
raw
materials.
High consumer
retention rate .
Natural Product.
Seasonal availability of
fruits
Brand
acknowledgement
Late entry into the

We a k n e s s

Opportunity
Participation with a
growing
industry.
Competitive advantage
over
carbonated soft
drinks.
Success of incredible
India
campaign
Champions league
Unstable
in
government
2011
policies
Rising Global Warming

Threats

MARKETING MIX

PRODUCT
COCO FRESH is a 100 percent coconut
water which will be produced and marketed
by Coco Beverage Ltd. We prefer tetra pack
because the product is aseptically packed
and it retains the original flavor and tastes
and hence you feel like drinking the water
directly from the coconut.
BRAND NAME: COCO FRSEH.
COCO FRESH in three flavors :Coco FRESH ( Normal )
Coco FRESH ( Sugar Free )
Coco FRESH ( Mango Flavors )
All Above Three are available in 180ml &
560ml with Tetra Packaging .

PRODUCT LIFE CYCLE

Our product lie in Introduction Period
of PLC
Low sales
High costs per customer
Negative profits
Innovator customers
Few competitors
Objective: To create awareness of
product
Offer a basic product
Selective distribution
Awareness dealers and early
adopters
Induce trial via heavy sales
promotion

PROJECT LOCATION

 In the initial phase we would be

outsourcing coconut processing &
packaging of Coco Beverage .
Coconut would be purchased from
Belgaum unit & Processing & Packaging
would be outsourced to local producer.
Mode of Transport: Road Transport.

Place

Distribution Channel
Belgaum
Delhi

Mumbai

Within region

PRICING
As a new comer our pricing strategy is to introduce
our products in the market at lower prices so as to
create huge demand in the market and then compete
with other competitors.
As we come up in the demand, we will increase our
prices and will provide more efficient and affordable
drinks .

Pricing Policy
Apply the concept of providing quality product
at optimum price
Provide Lucrative discounts, deals and schemes
Adopt sales oriented objective
Have one price policy to maintain a goodwill
among customers.

Pricing strategy

Factors

The factors which will contribute to

the success for our juice demands in
market:
High consumer retention rate
Price, a competitive advantage
Natural product
Great distribution network
Well Health product

Promotional Ideas

 Change beverage choices in

vending machines at school
and collages
Assess the financial impact
on school and collage
profits
Identify approaches to
promote healthful beverage
choices and maintain profits
for schools and collages

Long-Term Strategy

Contd.
Change advertising on
beverage vending machines
Change beverage choices to
water, sports drinks, and
100% fruit juices
Collect and submit monthly
financial data from school
and collages
Provide a Rs. 3,000
incentive per school in the

Tie Up Promotion
Strategy
We will tie up with PVR
cinemas to increase our
branding.
Will be putting up vending
machines in every PVR
cinemas like Bangalore,
Gujarat, Hyderabad,
Maharashtra, MP, NCR,
Punjab, UP

Facebook :Creating a community on

facebook.
Creating a Fan page on facebook.

Twitter :Regular tweets on product and

event
updates
will
ensure
interactivity.

Web Marketing

Processing of CoCofresh

Coconut Water

TetraPacked Water

Processing

Farmer

Transported by rented
truck

Transport and Processing

Processing
Tetrapack
(Belgaum)
Unit

Transported
by rented
truck
Stalls
and
Shops

Purchase
Customer

Warehouse
(Belgaum)

H.R.
Practices
Training & Development
Skills required
Salaries
Safety
Standard Working Environment

Financial Estimates

Financial Data
Form of business
Total cost of the project
Plant Capacity

: Partnership
: 2,94,82,517
: Processing of 5000 liter

per day
Means of financing

: 50% through partners

capital
50% through loan
Major raw material

: Coconut

Total number of workers

: 25

Depreciation rate

: WDV @ 15%

Total cost of the project

Machinery
Collection tank
Filter
Additive mixing tank
Boiler
Cutter & Filling machine
Storage tank
Other Machinery
Building & warehouse
Total Fixed Assets
Preliminary Expenses
Furniture & Fixtures
Contingency Margin
Total Capital Expenditure
Working Capital Needed

Qty.
3
3
2
3
3
3
4
1

Rate
Amount
4,00,000 12,00,000
3,00,000 9,00,000
2,00,000 4,00,000
3,00,000 9,00,000
2,50,000 7,50,000
4,00,000 12,00,000
1,50,000 6,00,000
1,20,00,00 1,20,00,00
0
0
1,79,50,00
0
1,00,000
5,00,000
1,00,000
1,86,50,00
0
1,08,32,51

Details of the land and Building

Particular
Building
Warehouse
Total Land
Required

Rate/sq.f
Sq. ft t
5000
1500
3000
1500
8000

Total
7500000
4500000

1500 12000000

Annual Demand estimation for 100% capacity

Product (Tetra pack)

Pure coco fresh (180
ml)
Coco fresh mango
(180 ml)
Pure coco fresh (560
ml)
Coco fresh mango
(560 ml)
Coco sugar free (560
ml)
Total Sales

Rate/unit

No. of
unit

Amount in
Rs.

18

5,00,000 90,00,000

20

7,00,000 1,40,00,000

50

5,00,000 2,50,00,000

55

6,00,000 3,30,00,000

65

8200 units
per day
7,00,000
4,55,00,000
12,65,00,00
30,00,000
0

Raw material estimation for 100% Demand capacity

Product
category

Units

Total ml
90000000

Total Ltr

180 ml

5,00,000

90000

180 ml

7,00,000

126000000 126000

560 ml

5,00,000

280000000 280000

560 ml

6,00,000

336000000 336000

560 ml

7,00,000

392000000 392000
12,24,00
Annual Total ltr required
0
61,20,00
Annual Total coconuts required
0
From 10,000 coconut you get 2000
ltr

Projected Profit and Loss A/c

Particulars
Sales / Receipts
Manufacturing Expenses
Raw materials
Wages
Repairs & Maintenance
Power & Fuel
Other Overhead Exp.
Depreciation
Production Cost
Administrative Expenses
Salary
Telephone Exp.
Stationery
Marketing & Dist. Exp
Packaging and designing

1st Year
2nd Year
3rd Year
10,12,00, 10,75,25,00 11,38,50,00
000
0
0
5,05,60,0
00 5,37,20,000 5,68,80,000
24,00,000 25,50,000 27,00,000
5,06,000
5,37,625
5,69,250
50,60,000 53,76,250 56,92,500
50,60,000 53,76,250 56,92,500
27,67,500 23,52,375 19,99,518
6,63,53,5
00 6,99,12,500 7,35,33,768
26,40,000
1,01,200
6,07,200
80,96,000
75,90,000

27,72,000
1,07,525
6,45,150
86,02,000
79,69,500

29,10,600
1,13,850
6,83,100
91,08,000
83,67,975

Conti

Partner's Remuneration
Prilim. Exp. W/OFF
EBIT

14,40,000

14,40,000

14,40,000

20,000

20,000

20,000

92,92,100 1,06,80,075 1,19,80,206

11,07,999.3

Interest on Term Loan @ 14%

13,05,500

8,82,848

WC Loan @ 12%

6,49,951

6,49,951

6,49,951

EBT

73,36,649

89,22,124 1,04,47,406

Tax @ 30%

22,00,994

26,76,637

31,34,222

EAT

51,35,654

62,45,487

73,13,184

PROJECTED BALANCE SHEET

Particular
1
2
3
LIABILITIES

Partner's capital
1,47,41,258 1,47,41,258 1,47,41,258
P&L A/c
51,35,654 1,13,81,142 1,86,94,326
Term Loan
79,14,281
63,06,061
44,72,691
WC Loan
54,16,258
54,16,258
54,16,258
Total
3,32,07,452 3,78,44,719 4,33,24,534

ASSETS

Gross Fixed Assets

1,84,50,000 1,56,82,500 1,33,30,125
less: Depriciation
27,67,500
23,52,375
19,99,518
Net Fixed Assets
1,56,82,500 1,33,30,125 1,13,30,606
Priliminary Expenses
80,000
60,000
40,000
Debtors
37,46,505
40,14,113
45,49,328
Inventory
49,45,152
50,34,354
52,12,759
Cash in Hand/Bank
87,53,295 1,54,06,127 2,21,91,840
Total
3,32,07,451 3,78,44,719 4,33,24,533

Particular
Net Profit (EAT)

PROJECTED CASH FLOW STATEMENT

1st Year
2nd Year
3rd Year
51,35,654
62,45,487
73,13,184

Add:
1)Depreciation
2)Prilim. Exp. W/Of

27,67,500
20,000

23,52,375
20,000

19,99,518
20,000

3)Interest on:
Term Loan
WC Loan
Term Loan received
WC Loan received
Partner's capital
Total

13,05,500
6,49,951
93,25,000
54,16,258
1,47,41,258
3,93,61,121

11,07,999
6,49,951
0
0
0
1,03,75,812

8,82,848
6,49,951
0
0
0
1,08,65,502

Less:
Fixed assets Invest.
Repay of TR Loan
Intrest paid on W.C

1,85,50,000
27,16,219
6,49,951

0
27,16,219
6,49,951

0
27,16,219
6,49,951

Current Assets
Debtors
Inventory
Total
Opening Balance
Surplus

37,46,505
49,45,151
3,06,07,826
0
87,53,295

2,67,607
89,202
37,22,980
87,53,295
66,52,832

5,35,215
1,78,405
40,79,790
1,54,06,127
67,85,712

OTHER KEY INFORMATION

Particular

1st Year

2nd Year

3rd Year

Debt service coverage

ratio
Interest coverage ratio

2.58

2.91

3.29

4.75

6.07

7.82

Break even points in % 66.44%

62%

59.59%

Return on investment

42.36%

49.61%

34.83%

Excel Sheet

Thank you!!!!