Budgeting Plan

We are planning to launch Lactose Free Milk as our planned product for Parag Dairy. For
Forecasting of sale, we analyzed the sales data of Amul Lactose Free Milk:
There will be 3 pack of the product:
S.No Pack Size Cost per unit (including advertising cost, Cost for MRP per
. sales and administration cost, factory cost) retailer unit
1 250 ml pack 20 22 24
2 500 ml pack 38 42 45
3 1-liter pack 76 86 90

S.No Pack Size No. of units Total Costing (Rs.) Total Collection (Rs.)
.
1 250 ml pack 50,000 10,00,000 (50,000x20) 11,00,000 (50,000x22)
2 500 ml pack 1,00,000 38,00,000 (1,00,000x38) 42,00,000 (1,00,000x42)
3 1-liter pack 1,50,000 1,14,00,000 (1,50,000x76) 1,29,00,000 (1,50,000x86)
1,62,00,000 1,82,00,000

Total Cost (including Production and Marketing) = Rs. 1,62,00,000

Total Income from Sales (including all pack size) = Rs. 1,82,00,000
Therefore, projected profit = Rs. 1,82,00,000-1,62,00,000 = Rs. 20,00,000
(Note: all the projection is done for Lucknow market only)
Costing Includes:
1. Tetra Pack cost which will be Rs. 12 for 1-Liter pack, Rs. 8 for 500 ml pack, Rs. 5 for
250 ml pack (all the prices are taken from IndiaMart.com
2. Cost of Raw Milk
3. Cost of Lactase Enzyme