Vitthala Food Private Limited

TECHNO-COMMERCIAL VIABILITY REPORT

DETAILED PROJECT REPORT

Vitthala Food Pvt Limited

(Sweet, Bakery and Confectionary Manufacturing Unit)

Manufacturing Plant at
Kothia Dakhili, PS No-413, Block Musahari, District -Muzaffarpur

Registered Office
B/701, Maitre Shiv Greens, (Omkareshwar), Opp Kena Bunglows, Motera
Road, Motera, Ahmedabad, Gujarat-380005

Project Proposed Under

Bihar Industrial Investment Promotion Scheme,

Government of Bihar
 TABLE OF CONTENTS

Table of Contents ............................................................................................................................ 2

1.0 Back ground ............................................................................................................................... 5

1.1. Food Processing Sector in India ................................................................................................ 5

1.2. Food processing in Bihar……………….................................................................................... 6

1.3. About FMCG Sector in india .................................................................................................... 8

1.3.1 Market Size.............................................................................................................................. 8

1.3.2 Investments/Developments...................................................................................................... 9

1.4. About Sweet (mithai) Industry.................................................................................................. 9

1.5. Sweet industry in Bihar .................................................................................................... …...10

2.0 About promoters .......................................................................................................................11

2.1. Promoters................................................................................................................................. 11

3.0 Project Description ...................................................................................................................15

3.1. Project components................................................................................................................. 16

4. Technololgy and manufacturing process ...................................................................................17

4.1. Technology............................................................................................................................. 18

4.2. PACKING OF sweets ............................................................................................................ 19

4.3. Process flow chart .................................................................................................................. 19

5. Organization Structure ...............................................................................................................21

6. Land, LOCATION, site and civil constructions .......................................................................22

6.1 Land and Site Analysis .......................................................................................................... 22

6.2 Civil Construction .................................................................................................................. 23

6.3 Land cost, Ownership status and statutory approvals ............................................................ 23

6.4 Master Plan............................................................................................................................. 23

6.5 Building units ........................................................................................................................ 24

6.6 Basic Infrastructure..................................................................................................................25

6.7 QUALITY CONTROL DURING EXECUTION................................................................... 25

6.8 SAFETY ASPECTS.............................................................................................................. 26

6.9 PRECAUTIONS TO BE TAKEN AT PROJECT SITE ...................................................... 26

7. Project Cost, Means of Finance and Financial Analysis..........................................................28

7. 1. Project Cost ........................................................................................................................ 28

7.1.1 Land................................................................................................................................... 28

7.1.2 Civil construction.............................................................................................................. 28

7.1.3 MACHINE and Equipment’s ........................................................................................... 29

7.1.4 MISCELLANEOUS Fixed Assets / Utilities ................................................................... 33

7.1.5 Working Capital Requirement........................................................................................... 33

7.1.6 Preliminary & Pre-operative Expenses............................................................................. 34

7.1.7 Contingencies.................................................................................................................... 34

7.2 Means of Finance ................................................................................................................ 34

7.3 Analysis of Business Plan ................................................................................................... 35

7.3.0 Operating Cost Assumptions ........................................................................................... 36

7.3.1 Raw Material Requirement and Cost .............................................................................. 37

7.3.2 Packaging material .......................................................................................................... 37

7.3.3 POWER AND fuel Cost.................................................................................................. 37

7.3.4 Employee Cost................................................................................................................. 37

7.3.5 Cost of Insurance and Maintenance................................................................................ 38

7.3.6 Admin & Selling Overheads............................................................................................ 38

7.4 FINANCIAL Assumptions.................................................................................................. 38

7.4.1 Taxes................................................................................................................................ 38

7.4.2 Depreciation Rates .......................................................................................................... 38

7.4.3 Interest............................................................................................................................. 39

7.5 Revenue Assumptions ......................................................................................................... 42

7.5.1 Capacity Utilization .......................................................................................................... 45

7.5.2 Projected Financial Performance ..................................................................................... 46

7.5.3 Financial Performance indicators ..................................................................................... 46

7.5.4 Projected Cash Flow Statement......................................................................................... 49

7.5.5 Projected Balance Sheet ....................................................................................................50

7.4.1. Break Even Analysis........................................................................................................ 50

7.4.2. SENSITIVITY Analysis................................................................................................... 51

8. Schedule of Implementation ...................................................................................................52

9. Impact of the project ...............................................................................................................53

10. Scheme for Industrial Investment Promotion in Bihar .........................................................54

 1.0 BACKGROUND

India, a South Asian nation, is the seventh-largest country by area, the second-most populous country
with over 1.33 billion people, and the most populous democracy in the world. The World Bank has
stated that private investments in India is expected to grow by 8.8 per cent in FY 2018-19 thereby
drive the growth in India's gross domestic p1roduct (GDP) in FY 2018-19.
As per The Economic Survey 2021-22, GDP growth is expected to be between 8.0 and 8.5 per cent in
2017-18. Real GDP growth is expected at 7.7 per cent in 2020-21. GVA growth at basic prices is
expected to be 7.3 per cent in 2020-21. During April-December 2017, exports grew 12.1 per cent to
US$ 223.5 billion, while imports increased by 21.8 per cent to US$ 338.4 billion. The production of
Kharif food-grains during 2017-18 is estimated at 134.7 million tons compared to 138.5 million tons in
2016-17. The area sown under rabi crops during 2017-18 has reached 61.78 million hectares as of
January 19, 2018.

1.1. FOOD PROCESSING SECTOR IN INDIA

Food processing sector is one of the largest sectors in India in terms of production, growth,
consumption, and export. India's food processing sector covers fruit and vegetables; spices; meat and
poultry; milk and milk products, alcoholic beverages, fisheries, plantation, grain processing and other
consumer product groups like confectionery, chocolates and cocoa products soya-based products,
mineral water, high protein foods etc.

According to Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce & Industry,
there has been FDI equity inflow of US$6492.19 million in the food processing sector during 2010-11 to
2016-17. 100% Foreign Direct Investment (FDI) in Food Processing Industries is allowed through
automatic route subject to applicable laws/sectoral rules/ regulations/ security conditions.

The Indian food processing industry is primarily export oriented. India's geographical situation gives
it the unique advantage of connectivity to Europe, the Middle East, Japan, Singapore, Thailand,
Malaysia and Korea. One such example indicating India's location advantage is the value of trade in
agriculture and processed food between India and Gulf region.
India's exports of Processed Food was Rs. 27,263.94 Crores in 2016-17, which including the share of
products like Mango Pulp (Rs. 864.97 Crores/ 129.29 USD Millions), Dried and Preserved Vegetable
(Rs. 1,088.55 Crores / 162.88 USD Millions), Other Processed Fruit and Vegetable (Rs. 3,116.08
Crores / 465.93 USD Millions), Pulses (Rs. 1,140.13 Crores / 171.07 USD Millions), Groundnuts (Rs.
5,456.72 Crores / 813.45 USD Millions), Guargum (Rs. 3,131.74 Crores / 467.9 USD Millions), Jaggery
& Confectionary (Rs. 1,471.64 Crores / 220.04 USD Millions), Cocoa Products (Rs. 1,089.99 Crores /
163.21 USD Millions), Cereal Preparations (Rs. 3,572.61 Crores / 534.09 USD Millions), Alcoholic
Beverages (Rs. 2,000.63 Crores / 299 USD Millions), Miscellaneous Preparations (Rs. 2,570.48 Crores
/ 384.53 USD Millions) and Milled Products (Rs. 817.68 Crores / 122.33 USD Millions).
Retail, one of the largest sectors in the global economy (USD 7 Trillion), is going through a transition
phase in India. One of the prime factors for non-competitiveness of the food processing industry is
because of the cost and quality of marketing channels. Globally more than 72% of food sales occur
through super stores. India presents a huge opportunity and is all set for a big retail revolution. India
is the least saturated of global markets with a small organized retail and also the least competitive of
all global markets.
(Source: 1. https://www.ibef.org,2. http://apeda.gov.in/apedawebsite/six_head_product/PFV_OPF.htm)

1.2. FOOD PROCESSING IN BIHAR

Bihar, fundamentally an agrarian economy, has a large agricultural and animal production base
offering abundant supply of raw material to be processed for human consumption. Despite these
natural advantages, the level of food processing is very low and there is scope to improve the food
processing levels to meet the increasing requirements of the state' growing population, while at the
same time offering a sustainable consumption market.
Bihar is one of the strongest agricultural states. The percentage of population employed in agricultural
production in Bihar is around 80 per cent, which is much higher than the national average. It is the
third largest producer of vegetables and the sixth largest producer of fruits in India. Food processing,
dairy, sugar, manufacturing and healthcare are some of the fast growing industries in the state. Bihar
enjoys dominant position in many crops such as mango, guava, litchi, pineapple, brinjal, cauliflower,
bhindi, and cabbage in India. Bihar position in key crop is as tabulated below

Commodity Contribution to India’s Production (in %age)

Maize 9.20

Maize 74.00

Mango 12.53
Makhana 85.00
Vegetables 9.00

TABLE 1 BIHAR’S POSITION IN KEY CROPS

The state enjoys a unique location specific advantage because of its proximity to the vast markets of
eastern and northern India, access to ports such as Kolkata and Haldia and to raw material sources and
mineral reserves from the neighboring states. The state has a large base of cost-effective industrial
labour, making it an ideal destination for a wide range of industries.

Further, the rising income and changing lifestyle in the cities as well as rural Bihar is changing the
consumption demand towards processed food. Therefore, the state offers a substantial opportunity for the
food processing industry and is expected to play a leading role in the industrialization drove of this state.

The production level of cereals in the state has grown annually at 5.65% in the last 5 years i.e. 2010-11 to
2014-15. Total cereal production of the state was 143.21 Lacs tons in 2014-15 which is one of the largest
in the country. Some of the major products of the state are:
Particulars Production (In Lacs of Tons)
Rice 82.41
Wheat 35.70
Maize 24.78
Pulses 4.28
Oil-Seeds 1.27
TABLE 2 STATUS OF PRODUCTION-CEREALS
Bihar ranks first among all the Indian states in terms of vegetable production. The total vegetable production in
the state was 144.99 Lacs tons in 2014-15.Some of the major vegetables produced in the state are:

Particulars Production (In Lacs of Tons)

Potato 63.46

Onion 12.47

Cauliflower 10.03

Tomato 10.46

TABLE 3 STATUS OF PRODUCTION-VEGETABLES

Other vegetables such as cabbage, okra, carrot, and pea are also grown in the state which can be used for
commercial processing. Some of the major fruits produced in the state are:

Particulars Production (In Lac Tons

Banana 15.27
Mango 12.72
Guava 3.70
Litchi 1.98

TABLE 4 STATUS OF PRODUCTION-FRUITS

1.3.1 MARKET SIZE

The retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 840 billion in 2017, with
modern trade expected to grow at 20 per cent - 25 per cent per annum, which is likely to boost revenues of
FMCG companies. Revenues of FMCG sector reached Rs 3.4 lakh crore (US$ 52.75 billion) in FY18 and are
estimated to reach US$ 103.7 billion in 2020. The sector witnessed growth of 16.5 per cent in value terms
between July-September 2018; supported by moderate inflation, increase in private consumption and rural
income.
The FMCG sector is expected to grow at 9-10 per cent in 2019 due to rise in rural consumption to drive the
FMCG market. It contributes around 36 per cent to the overall FMCG spending. FMCG urban segment
witnessed growth rate of 8 per cent whereas rural segment grew at 5 per cent in quarter ended in September
2019. Vitthala Food Private Limited
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1.3.2 INVESTMENTS/ DEVELOPMENTS
The government has allowed 100 per cent Foreign Direct Investment (FDI) in food processing and single-
brand retail and 51 per cent in multi-brand retail. This would bolster employment and supply chains, and
also provide high visibility for FMCG brands in organised retail markets, bolstering consumer spending
and encouraging more product launches. The sector witnessed healthy FDI inflows of US$ 15.36 billion,
during April 2000 to June 2019.
1.4. ABOUT SWEET (MITHAI) INDUSTRY
Traditional Indian Sweet Market is estimated to be around Rs 49,000 Cr. The major competitor for the
segments are chocolate, fancy cookies, cakes, and muffins. Sweet forms part of Snacks markets which is
quite diverse in nature and has region specific varieties, flavours, biscuits, chocolates, confectioneries and
traditional savory snacks. Among all these, savory snacks increased its weightage in recent years due to
increased penetration of packaged snacks. The savory snacks are the salty snacks made from natural as
well as added colors and flavored ingredients; broadly consists of ready to eat mixes, various kinds of
chips, namkeens and related light processed foods packaged or loose, branded or unbranded. The Indian
packaged snacks market and especially savory snack has undergone significant change in the past decade
with the entry of numbers of national and regional players with their distinctive brands and flavors.
Now Namkeen is well known to each and every part of our geography. South and North East part of India
has good demand of Namkeen because of mix culture. Due to employment and business opportunities,
north and west side people spread over the whole country, settled along with food habits and culture. We
are getting more inquiries from south side for namkeen, earlier it was limited to their traditional food and
banana chips. Now people are more inclined towards Namkeen and potato chips. Even North East region is
also having different requirement of Indian snacks, namkeens and pasta.”
The low per capita consumption of food in certain pockets offers tremendous opportunities for food
companies. Many companies, including the global ones have recognized this potential and are increasingly
investing in India. The Indian snacks market is characterised by a large number of un-organised players
across all product segments. This stems from each type of snack being very specific to each region, and
hence, many small companies cater to that market. These players have a slim portfolio of products, usually
of a single category and in many cases only provide traditional snacks items. They also operate in a small
geographic range confined to a single state or city. The organised snacks market has been witnessing high
growth over the last Vitthala Food Private Limited
10
few years. This is because of the overall growth in the processed foods segment, followed by the moving
trend towards consolidation of markets. Some of the traditional Indian snacks have fared better than
Western snacks.
1.5. SWEET INDUSTRY IN BIHAR
Due to culture of the state sweet industry has always been a thriving industry in Bihar. Large number of
sweet shops can be found in each nook and corner of the state. The traditional items like Jeelebi,
Rasogulla, Gulabjamun, Kalakand, Balusahi, Ladoo etc has been part of most of the festivals like Holi,
Deepawali, religious offerings, marriage and other household ceremonies. Earlier sweet shops were mainly
part of the rural fair/exhibition but with increase in transport means and income, permanent shops have
taken their place.
With the development of modern processing machineries, preservation techniques and cold storage
technologies; the food processing industry has grown many folds.
A larger part of the sales turnover of Bihar State Milk Marketing Federation, brand name Sudha is
contributed by the milk based products like Rassogula, Kalakand, Milk Cake, Gulab Jamun, Ghee,
Raskadam, Misti Dahi etc. some of the other companies like Bikaner Sweets, ITC, local dairy brand have
also started supplying Sweets in the markets. 2.0 ABOUT PROMOTERS
To tap the immense potential hidden of the Sweet Industry, , Vitthala Food Private Limited has
planned to put up Sweet, Bakery and Confectionary Manufacturing unit producing different kinds of
sweets suited to local taste of Bihar. This company has been created for setting up of the unit.
2.1. PROMOTERS
Vitthala Food Private Limited, having registered office at B/701, Maitre Shiv Greens, (Omkareshwar),
Opp Kena Bunglows, Motera Road, Motera, Ahmedabad, Gujarat-380005 is private limited company. The
Corporate Identification no of the unit is U15490GJ2018PTC103252. There are two promoters director in
the company namely Bipin Kumar Mishra and Gunja Mishra.
The detailed profile of the Educational Qualification Experience
promoter is as follows:
Name of Promoter director
Bipin Kumar Mishra Diploma in Mechanical The promoter is current
Engineering operating different type of
business. He is
manufacturing equipments
like boiler and different parts
required in the food
processing industry. He is
experienced in operation and
management of food
processing plant. He also has
vast experience of food and
snacks business and has been
associated with good brand
of the country.
Gunja Mishra 10+2 She is supporting, the lead
promoter in the day to day
business of the unit. She is
currently supporting in the
office documentation work.
3.1. PROJECT COMPONENTS
❖Raw Material Storage Area: The raw material for processing of the sweet will be stored in the
raw material storage area. All the raw material will be kept in cool and dry area. Some of the raw
material like milk, cream etc will be stored in tanks specifically set up for the storage.
❖Processing Area: The Processing Area will have processing equipment’s for manufacturing of
the sweet. It will also have dedicated tables and area for preparation of different kinds of sweets and
bakery products.
Vitthala Food Private Limited
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❖Packaging Area: The finished products will be transported to the packaging area. Majority of
the products will be packed manually except some products which will have mechanised packaging
system.
❖Finished Product Area: The finished packaged products will be moved to the finished products
area from where it will go to the market.
4. TECHNOLOLGY, MANUFACTURING AND MARKETING PROCESS Vitthala Food
Private Limited
18
Technology for the unit has been chosen carefully keeping in mind the best practices observed in India and
local processes that may add unique value to the final produce. The proposed technology has also taken
into consideration the market factors affecting the quality of the final produce. The technology has been
arrived at after detailed discussion with the Sweet Product Manufacturing experts and local stakeholders.
Details of the technology and process are given below:
4.1. TECHNOLOGY
The unit will adopt modern machinery and will adopt a mix of machanised and manual production process.
This process will have minimal manual intervention. The details of the manufacturing process to be
adopted by the unit has been detailed below. The process may change and get modified during the DPR
state based on the plant and machines proposed.
Gulab Jamun Making Process
Mixing of Ingrediented (Plain Khoa
+Sugar)
Heating
Stirring content for dissolving water
Cooking
Adding flavouring agent
Allowing settling of contect (at 8 hours)
Shaping of round flat pedas
Packing
Storing
Khoa Making Process
A concentration of milk to one-fifth volume is normal in the production of khoa. Khoa is used as the base for a wide
variety of Indian sweets. About 600,000 metric tons of Khoa are produced annually in India. Khoa is made from
both cow and water buffalo milk. Khoa is made by simmering full-fat milk in a large, shallow iron pan for several
hours over a medium fire. The gradual evaporation of its water content leaves only the milk solids. The ideal
temperature to avoid scorching is about 80 °C (180 °F). Another quick way of making khoa is to add full fat
Vitthala Food Private Limited
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milk powder to skimmed milk and mixing and heating until it becomes thick. This may, however, not have the same
characteristics as traditionally made khoa.
4.2. PACKING OF SWEETS
Sweets are packed in different sizes as per the market requirement. It varies from 250 Grams to 2 kgs packs.
Packaging Facility: The project proposes to setup a packaging facility for packaging sweet from 250 Gms to 2 Kgs.
With growing consumerism and increasing awareness towards quality control and food standards, demand of
packaged sweets is increasing vis-à-vis loose sweets sold traditionally in markets. Sweets are perishable in nature
and spoils when is exposed to atmosphere. The properly packed sweets will retains its freshness and also do not get
contaminated with dust and other infestations like pest, rodents.
4.3. PROCESS FLOW CHART
The plant will adopt following process for smooth operations of the unit and production of quality products. The
process flow chart inside the unit will be as follows:
Raw material movement
Movement of material for preparation of sweet

4.4. MARKETING OF PRODUCT

VFPL will promote the product at Cost (in Lakhs)
district and state level for faster market
penetration. The firm will use
combination of media to have a quicker
market share gain. The details of the
activities planned by VFPL are as
follows: Activities
Radio Jingle in all the leading FM 10
Channels like Radio Mirchi
TV Advertisement 20
New Paper Ad 18
Banners at key places 10
Poster 10
Highway banner 12
Celebrity endorsement 40
Total 110
Net worth Details of the Firms

The promoter firm is a new entity and has not done any significant business. Hence, promoter Director net

worth is taken to arrive at the net worth of the unit. The promoter has submitted the Net worth Certificate from

CA firm MAPSS & CO. The CA certificate has been signed by CA Niraj Kumar Thakur, membership number

538925 dated 05 th July 2022. The CA Certificate has been attached with detailed project report for kind

reference.

Name of Promoter director Net Worth in (Rs. Lakhs)

Bipin Kumar Mishra 870.17

Gunja Mishra 204.93

Avadesh Mishra 170.26

Total 1245.36

The total net worth of the director is Rs 1245.36 Lakhs. It is to be noted that Avadesh Mishra is father of

Director, Bipin Kumar Mishra and he is his only legal heir.

 Vitthala Food Private Limited
6.2 CIVIL CONSTRUCTION
The major heads considered under civil construction works are production hall, raw & finished good area &
other basic infrastructure.

6.3 LAND COST, OWNERSHIP STATUS AND STATUTORY APPROVALS

The land cost of proposed unit is considering zero due to on lease condition.Statutory approvals status before
commencement of work:
SL. No. DESCRIPTION STATUS
SI Description Status
1 Civil/Building construction permissions from the competent Obtained
Authority
2 Consent to establish from Bihar Pollution Control Board Required at the time of production
(BPCB
3 Consent from Land Revenue department for change in land Not Required .NOC Required at
use the time of commencement of
from agriculture to industrial business.

4 Consent from department of Horticulture for construction of Not Required

food processing unit
5 Approval from the local authority for start of construction Obtained
work

6.4 MASTER PLAN

The Master Plan has been prepared in accordance with the requirements of the project. Based on the

requirements of project component, the facilities are planned and integrated. The planning of the building

structures and infrastructure facilities has been done keeping in view the major attributes like entrance to the

plot, vehicular movement inside the plot and other functional requirements. The location of the various units in

the site has been fixed to facilitate smooth process flow.

Proposed master plan building setbacks (9m on front, 4.5m on rear and 4.5m on two sides), built-up area and

open space has been considered as per local bye-laws applicable for industrial buildings.

Vitthala Food Private Limited

 7. PROJECT COST, MEANS OF FINANCE AND FINANCIAL ANALYSIS

Details of the project cost and means of finance are given below:

7. 1. PROJECT COST

The Project is estimated to cost 2001.79 lakhs. The cost estimates are provided on the basis of quotations
received from suppliers and estimates given by chartered engineers.
The detailed breakup of the cost of the Project is given below:

Cost of Project % of Project Cost

Particulars Total
Land 121.02 6.05 %
Land Development Cost 45.32 2.26 %

Plant Area & Building 748.61 37.39 %

Development

Plant and Machinery 565.80 28.26 %

Preliminary and Pre-operative 28.05 1.40 %

Expenses

Contingency 67.99 3.40%

Working Capital 425.00 21.24%

Total 2001.79 100.00%

7.1.1 LAND

The proposed Land of 20255.4 Sq Ft is in the name of Unit. The nearest railway station of
Muzaffarpur Junction is located at a distance of 8 km from the proposed site.

7.1.2 CIVIL CONSTRUCTION

Vitthala Food Private Limited

The working capital requirement of company is as detailed below:

 Details Days Amount In Rupees (In Lakh)
Finished Product 20 168.73
Raw Materials 20 296.85
Debtors 20 343.15
Other Expenses 20 366.30
Creditors 20 (389.46)
Working Capital 425.00
Margin Money for W/C 106.25

Details Days Amount

Going by the second method of working capital lending i.e. 25% of the turnover the working capital
requirement would have been come to around 106.25 lakhs in the first year. However keeping in mind the
nature of the business, the actual working capital requirement is recommended.

7.1.6 PRELIMINARY & PRE-OPERATIVE EXPENSES

The provision towards preliminary & pre-operative expenses includes expenditure towards like salaries &
administrative expenses, travel expenses, market development expenses, interest during construction period etc.
It is also assumed that the project will be completed over a period of one year. The interest during construction
period is capitalized in the project cost. The detailed breakup is given below:

Preliminary & Preoperative expenses Rupees in Lacs

Description Amount
Interest during construction period

Misc. expenses (Admin, travel, market development 28.05

etc.)
Total 28.05

Description Amount
7.1.7 CONTINGENCIES

The amount is calculated at 3.40 % of project cost excluding cost of land.

Vitthala Food Private Limited

7.2 MEANS OF FINANCE

The cost of the project is proposed to be financed through a mix of equity and term loans.
The unit will get the subsidy as interest waiver which will be directly paid to the banker.

Means of Finance Proportion Amount (Lac Rs.)

Equity 82.52 % 1651.79
Debt 17.48 % 350.00
Total 100.00% 2001.79

Means of Finance Proportion (%) Ant (La

7.3 ANALYSIS OF BUSINESS PLAN

The unit proposes to set up the Modern Mechanized Sweet, Bakery, Namkeen and Milk Product
Manufacturing unit. The unit is planning to set up large number of Sweet Shops which will cater to own
shops at the same time will also serve B2C segments.

Sweet
Processing
Facility

B2B Segment B2C Segment

Packaged
Shop I Shop II Shop III Cans Sweets Namkeen Bakery Item
Sweets

FIGURE 1 TARGET SEGMENT OF THE PROPOSED UNIT

Segment wise annual production capacity of the unit will be as follows:

Product Type Production Capacity/Shift Production

(MT) Capacity/Shift
(MT)
Min Maximum
Kaju & Dry fruits Loose 0.1 0.45 0.5
Sweets Package 0.02 0.05
Khao Sweets Loose 0.2 0.9

Vitthala Food Private Limited

In addition to these budget specified above for marketing and business promotion at initial level we will made

budget 15 to 20 % of revenue generated in a period at regular level to Quick market share gain for our product.

To achieve market share at required level we have business promotion strategy:

Food Product Marketing Strategy

1. Know Your Price Point:

2. Brand Positioning

3. Product Packaging

4. Email/Text Marketing

5. Blog Marketing on Website

6. Partnering with other Brands

7. Creating statement with USP

8. Hosting Events

9. Seasonal Offers

10. Social Media Marketing

11. Bonus Tips

12. Wrapping Up

13. Cast a Wide Net.

Vitthala Food Private Limited

7.4.1 TAXES
Income Tax rate is assumed as flat 30.00%

7.4.2 DEPRECIATION RATES

Depreciation has been provided on straight-line method, as per the Companies Act, 1956, for book purposes,
whereas for tax purposes, written down value method is employed. The rate of depreciation for plant &
machinery and miscellaneous fixed assets is taken as 10.34 % for book purposes and 15% for tax purposes

7.4.3 INTEREST

Interest would be charged to the Project at 12.50 % p.a. for Term Loan and 13.50% p.a. for working capital
loan. A repayment period of 6 years including a moratorium of 4 quarters has been considered for financial
projections.

Loan Repayment Schedule

Reducing Bal Method In Lakh

Quarte Closing
    r Opening Balance Addition Interest Principle Balance
1 - - - - -
2022- 2 - 350.00 10.94 - 350.00
23 3 350.00 - 10.94 - 350.00
1 4 350.00 - 10.94 - 350.00
5 350.00 - 10.82 10.57 339.43
2023- 6 339.43 - 10.49 10.91 328.52
24 7 328.52 - 10.14 11.25 317.27
2 8 317.27   9.79 11.61 305.66
9 305.66   9.42 11.98 293.68
2024- 10 293.68   9.04 12.36 281.32
25 11 281.32   8.66 12.75 268.57
3 12 268.57   8.26 13.15 255.42
13 255.42   7.84 13.57 241.85
2025- 14 241.85   7.41 14.00 227.85
26 15 227.85   6.96 14.43 213.42
4 16 213.42   6.50 14.9 198.52
17 198.52   6.04 15.37 183.15
2026- 18 183.15   5.56 15.85 167.30
27 19 167.30   5.06 16.36 150.94
5 20 150.94   4.53 16.86 134.08
21 134.08   4.02 17.4 116.68
2027- 22 116.68   3.45 17.94 98.74
28 23 98.74   2.88 18.51 80.23
6 24 80.23   2.3 19.1 61.13
25 61.13   1.71 19.7 41.43
2028- 26 41.43   1.08 20.34 21.09
29 27 21.09   0.44 21.09 (0.00)
7 28          
 Reducing Balance Method
2023-
Year 2022-23 24 2024-25 2025-26 2026-27 2027-28 2028-29
Annual
Interst
Paid 32.81 41.24 35.38 28.71 21.19 12.65 3.23
Principle
Repaymen
t - 44.34 50.24 56.9 64.44 72.95 61.13
Total
Principle
& Interst
Paid 32.81 85.58 85.62 85.61 85.63 85.6 64.36
Opening
Balance 0 350 305.66 255.42 198.52 134.08 61.13
Closing
Balance 350 305.66 255.42 198.52 134.08 61.13 0

Working Capital Loan

Eligibilty 75 %                
Interest Rate
13.5%                
                 
Working Capital Requirement

Finished Product 20 Days            

Raw Material 20 Days            

Debtors 20 Days            

Other Expenses 20 Days            

Creditors 20 Days            
                 
Year 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30

Working Capital                

Finished Product 168.73 296.85 343.15 366.30 389.46 412.61 435.76 482.07

Raw Material 65.72 118.30 138.01 147.87 157.73 167.59 177.44 197.16

Debtors 113.56 204.41 238.48 255.52 272.55 289.59 306.62 340.69

Other Expenses 148.69 259.09 298.97 318.92 338.86 358.80 378.74 418.63

Creditors 71.69 129.05 150.55 161.31 172.06 182.81 193.57 215.08

                 
Total Working
Capital 425.00 749.60 868.07 927.30 986.53 1,045.77 1,105.00 1,223.48
Margin 106.25 187.40 217.02 231.82 246.63 261.44 276.25 305.87
Working Capital
Borrowing 318.75 562.20 651.05 695.47 739.90 784.33 828.75 917.61
Interest on WC 17.93 75.90 87.89 93.89 99.89 105.88 111.88 123.88

7.5
Revenue Assumptions  
Raw Material Assumptions                
Raw Sale
All Products   Price Days Raw Cost Finished Price Days Sale
Products Raw MT Rs/MT   Lac(Rs) MT Rs./MT   Lac(Rs)
                 
Loose Sweet 7.95 0.75 300 1788.75 4.20 2.29 300 2,885.40
Package Sweet 7.95 0.49 300 1168.65 4.55 1.63 300 2,224.95

  15.90 1.24 9.82   8.75 3.92   5,110.35

Annual Total Production @

100% Capacity      

Loose 2385 0.75 1,788.75

Package 2385 0.49 1,168.65

  4770   2,957.40
     

Loose 1260 2.29 2,885.40

Package 1365 1.63 2,224.95

Finished Product (MT) 2625   5,110.35

     

Packaging
Cost
Packaging Qty Days in Total
Cost Rs/MT (MT) (Lacs Rs) Production Production Total Cost
Loose
Sweets 2,000.00 4.20 0.84 300.00 1,260.00 25.20
Package
Sweets 2,000.00 4.55 0.91 300.00 1,365.00 27.30
       
Total   8.75 1.75   2,625.00 52.50

Ingredient
Cost
(Average)      
Product Qty Days in Total
Category Rs/MT (MT) (Lacs Rs) Production Production Total Cost
Loose 400 7.95 0.32 300.00 2,385.00 9.54
Sweet
Packaged
Sweet 400 7.95 0.32 300.00 2,385.00 9.54
Total   15.9 0.64

Productio
n in MT

Productio
n in MT 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
Capacity
Utilization 50% 60% 70% 75% 80% 85% 90% 100%
Month 8 12 12 12 12 12 12 12
Loose
Sweet 420.00 756.00 882.00 945.00 1,008.00 1,071.00 1,134.00 1,260.00
Package
Sweet 455.00 819.00 955.50 1,023.75 1,092.00 1,160.25 1,228.50 1,365.00
Total 875.00 1,575.00 1,837.50 1,968.75 2,100.00 2,231.25 2,362.50 2,625.00

Raw Material Cost

Sheet              
                 
Raw
Material
(In Lacs of
Rs.) 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
Capacity
Utilization 50% 60% 70% 75% 80% 85% 90% 100%
Loose
Sweet MT 795 1431 1669.5 1788.75 1908 2027.25 2146.5 2385
Package
Sweet MT 795 1431 1669.5 1788.75 1908 2027.25 2146.5 2385
Raw
Material
Consumed
MT 1590 2862 3339 3577.5 3816 4054.5 4293 4770
                 
Loose
Sweet 596.25 1073.25 1252.125 1341.563 1431 1520.4375 1609.875 1788.75
Package
Sweet 389.55 701.19 818.055 876.4875 934.92 993.3525 1051.785 1168.65
Total 985.8 1774.44 2070.18 2218.05 2365.92 2513.79 2661.66 2957.4

Ingrediant
Cost (In
Lacs of 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
Rs.)
Capacity
Utilization 50% 60% 70% 75% 80% 85% 90% 100%
Loose
Sweet 3.18 5.724 6.678 7.155 7.632 8.109 8.586 9.54
Package
Sweet 3.18 5.724 6.678 7.155 7.632 8.109 8.586 9.54
Total 6.36 11.448 13.356 14.31 15.264 16.218 17.172 19.08

Revenue
Revenue
(In Lacs of
Rs.) 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
Capacity
Utilization 50% 60% 70% 75% 80% 85% 90% 100%
Loose
Sweet 961.80 1,731.24 2,019.78 2,164.05 2,308.32 2,452.59 2,596.86 2885.40
Package
Sweet 741.65 1,334.97 1,557.47 1,668.71 1,779.96 1,891.21 2,002.46 2224.95
Total 1703.45 3066.21 3577.245 3832.763 4088.28 4343.7975 4599.315 5110.35

Packing
Cost

Packaging
Cost (In
Lacs of
Rs.) 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
Capacity
Utilization 50% 60% 70% 75% 80% 85% 90% 100%
Loose
Sweet 8.40 15.12 17.64 18.90 20.16 21.42 22.68 25.20
Package
Sweet 9.10 16.38 19.11 20.48 21.84 23.21 24.57 27.30
Total 17.50 31.50 36.75 39.38 42.00 44.63 47.25 52.50

Other
Expenditur
e

Other
Expenditur
e (In Lacs
of Rs.) 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
Capacity
Utilization 50% 60% 70% 75% 80% 85% 90% 100%

Other Exp 1,486.86 2,590.93 2,989.74 3,189.16 3,388.59 3,588.01 3,787.44 4,186.33

Depreciation 58.22 87.34 87.34 87.34 87.34 87.34 87.34 87.34

Total 1,545.08 2,678.26 3,077.07 3,276.50 3,475.92 3,675.35 3,874.77 4,273.66

Stock in
Trade

Stock in
Trade (In
Lacs of Rs.) 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
Capacity
Utilization 50% 60% 70% 75% 80% 85% 90% 100%
Raw
Material 985.80 1,774.44 2,070.18 2,218.05 2,365.92 2,513.79 2,661.66 2,957.40
Other
Expenditure 1,545.08 2,678.26 3,077.07 3,276.50 3,475.92 3,675.35 3,874.77 4,273.66

Total 2,530.88 4,452.70 5,147.25 5,494.55 5,841.84 6,189.14 6,536.43 7,231.06

Purchases

Purchases
(In Lacs of
Rs.) 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
Capacity
Utilization 50% 60% 70% 75% 80% 85% 90% 100%
RM
Consumed 985.80 1,774.44 2,070.18 2,218.05 2,365.92 2,513.79 2,661.66 2,957.40
Pcking
Consumed 17.50 31.50 36.75 39.38 42.00 44.63 47.25 52.50
Ingrediant
Consumed 6.36 11.45 13.36 14.31 15.26 16.22 17.17 19.08
RM Stock in
Hand 65.72 118.30 138.01 147.87 157.73 167.59 177.44 197.16
                 

Total 1,075.38 1,935.68 2,258.30 2,419.61 2,580.91 2,742.22 2,903.53 3,226.14

 Vitthala Food Private Limited
7.5.1 CAPACITY UTILIZATION

Capacity Capacity
Utilisation Year utilization
Year I 50%
Year II 60%
Year III 70%
Year IV 75%
Year V 80%
Year VI 85%
Year VII 90%
Year VIII 100.00%

The project has assumed 50% capacity utilization in the first year, which may be regarded as conservative. The
actual capacity utilization may be higher than the projected one.

Project Profitability Statement

Year 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00

  2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
Month of
Operation 8.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00

Month 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00

Capacity 50.00 60.00 70.00 75.00 80.00 85.00 90.00 100.00

Revenue 1,703.45 3,066.21 3,577.25 3,832.76 4,088.28 4,343.80 4,599.32 5,110.35

Expenses                
Raw Material
Cost 985.80 1,774.44 2,070.18 2,218.05 2,365.92 2,513.79 2,661.66 2,957.40

Ingredient Cost 6.36 11.45 13.36 14.31 15.26 16.22 17.17 19.08

Packing Cost 17.50 31.50 36.75 39.38 42.00 44.63 47.25 52.50

Power Cost 4.23 7.62 8.89 9.53 10.16 10.80 11.43 12.70

Fuel Cost 9.73 17.51 20.43 21.89 23.34 24.80 26.26 29.18
Water
Consumption
Cost 0.27 0.49 0.53 0.57 0.61 0.65 0.69 0.81
Fixed Employee
Cost 171.00 171.00 171.00 171.00 171.00 171.00 171.00 171.00
Variable
Employee Cost 12.00 21.60 25.20 27.00 28.80 30.60 32.40 36.00
Fixed Repair &
Maintenance 15.49 15.49 15.49 15.49 15.49 15.49 15.49 15.49
Variable Repair
& Maintenance 9.86 17.74 20.70 22.18 23.66 25.14 26.62 29.57
Fixed Insurance
Exp 11.34 11.34 11.34 11.34 11.34 11.34 11.34 11.34
Variable
Insurance Exp 19.72 35.49 41.40 44.36 47.32 50.28 53.23 59.15
Admin & Selling
Exp 113.56 229.97 268.29 287.46 306.62 325.78 344.95 383.28
Business
Promotion Exp 110.00 245.30 286.18 306.62 327.06 347.50 367.95 408.83

Total Exp 1,486.86 2,590.93 2,989.74 3,189.16 3,388.59 3,588.01 3,787.44 4,186.33

EBITDA 216.59 475.28 587.51 643.60 699.69 755.79 811.88 924.02

Interest on Long
Term 32.81 41.24 35.38 28.71 21.19 12.65 3.23 -

Interest on WC 17.93 75.90 87.89 93.89 99.89 105.88 111.88 123.88

Depreciation 58.22 87.34 87.34 87.34 87.34 87.34 87.34 87.34

PBT 107.63 270.81 376.90 433.67 491.28 549.92 609.43 712.81

Tax 32.29 81.24 113.07 130.10 147.38 164.97 182.83 213.84

PAT 75.34 189.57 263.83 303.57 343.90 384.94 426.60 498.97

Net Cash Inflow                

from Operation 133.57 276.90 351.17 390.90 431.23 472.28 513.94 586.30

7.5.2 PROJECTED FINANCIAL PERFORMANCE

The projected profitability statement, cash flows and balance sheet of the proposed project is given below
 7.5.3 FINANCIAL PERFORMANCE INDICATORS

Financial
Perfomance
Indicator                
Year 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
EBITDA Margin 216.59 475.28 587.51 643.60 699.69 755.79 811.88 924.02

PAT Margin 75.34 189.57 263.83 303.57 343.90 384.94 426.60 498.97

Debt Equity Ratio 0.29 0.22 0.15 0.10 0.06 0.02 (0.00) -
Debt to EBITDA
Ratio 1.62 0.64 0.43 0.31 0.19 0.08 (0.00) -
Interest Coverage
Ratio 4.27 4.06 4.77 5.25 5.78 6.38 7.05 7.46
DSCR 5.07 3.72 4.51 4.90 5.28 5.67 8.01 -
Average DSCR   4.65            
Project IRR   21%            
Equity IRR   28%            
NPV   2,143.62            
Break Even Point in
% 72.91 58.80 53.34 50.84 48.58 46.52 44.62 42.38

Interest Coverage Ratio

EBITDA 216.59 475.28 587.51 643.60 699.69 755.79 811.88 924.02
Interest                
On Long Term Debt 32.81 41.24 35.38 28.71 21.19 12.65 3.23 -
On WC Borrowings 17.93 75.90 87.89 93.89 99.89 105.88 111.88 123.88
Total Interest Paid 50.74 117.14 123.27 122.60 121.08 118.53 115.11 123.88
Interest Coverage Ratio 4.27 4.06 4.77 5.25 5.78 6.38 7.05 7.46
Average ICR Ratio       5.63        

Calculation DSCR

PAT 75.34 189.57 263.83 303.57 343.90 384.94 426.60 498.97

Depreciation 58.22 87.34 87.34 87.34 87.34 87.34 87.34 87.34

Interest on
Long Term 32.81 41.24 35.38 28.71 21.19 12.65 3.23 0

Total Cash
Accural 166.38 318.14 386.55 419.61 452.42 484.93 517.17 586.30

Interest on
Long Term 32.81 41.24 35.38 28.71 21.19 12.65 3.23 -
Principle
Debt - 44.34 50.24 56.9 64.44 72.95 61.3 -

Total Debt
To be
Served 32.81 85.58 85.62 85.61 85.63 85.6 64.53 -

DSCR 5.07 3.72 4.51 4.90 5.28 5.67 8.01 -

Average
DSCR       4.65        

Project IRR Equity IRR & NPV

Cash Inflow  2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
PAT 75.34 189.57 263.83 303.57 343.90 384.94 426.60 498.97
Add :Depreciat
ion 58.22 87.34 87.34 87.34 87.34 87.34 87.34 87.34
 Total Cash
Flow 133.57 276.90 351.17 390.90 431.23 472.28 513.94 586.30

  1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00

PCI 133.57 276.90 351.17 390.90 431.23 472.28 513.94 586.30
Terminal
Value               879.14
PCI 133.57 276.90 351.17 390.90 431.23 472.28 513.94 1,465.44
Capital
Expenses 1,548.74 - - - - - - -
Security
Deposiy with
BSEB 1.76 - - - - - - -

Margin Money 106.25 81.15 29.62 14.81 14.81 14.81 14.81 29.62
Total Cash
Flow 1,656.75 81.15 29.62 14.81 14.81 14.81 14.81 29.62
  1 1 1 1 1 1 1 1
PCO 1,656.75 81.15 29.62 14.81 14.81 14.81 14.81 29.62
                 
Present Net
Cash Flow (1,523.19) 195.75 321.55 376.09 416.42 457.47 499.13 1,435.82
                 

Cumlative CF (1,523.19) (1,327.43) (1,005.88) (629.79) (213.36) 244.11 743.24 2,179.06

Discounted
Rate 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
IRR 21%              
                 
Equity IRR                

PNCF (1,523.19) 195.75 321.55 376.09 416.42 457.47 499.13 1,435.82

Debt
Repayment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Cash Flow to
Equity (1,523.19) 195.75 321.55 376.09 416.42 457.47 499.13 1,435.82

Loan 350.00              

Cash Flow (1,173.19) 195.75 321.55 376.09 416.42 457.47 499.13 1,435.82
Equity IRR 28%              
                 
NPV                
NCF 133.57 276.90 351.17 390.90 431.23 472.28 513.94 1,465.44
Out Flow 1,891.81              

NPV (1,758.24) 276.90 351.17 390.90 431.23 472.28 513.94 1,465.44

Total NPV 2,143.62              

From the analysis of above indicators, the financial health of the projects seems good. The project is earning
good returns and profit margins. The ability of project to re-pay its debt liabilities also looks strong. Moreover,
the time series analysis of debt-equity ratio shows that project will be easily able to reduce debt burden from its
capital structure.

7.5.4 PROJECTED CASH FLOW STATEMENT

 t
Projected Cash Flow Statement
                 
Year 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
                 
Sources of Fund                
Cash From
Operation                

PAT 75.34 189.57 263.83 303.57 343.90 384.94 426.60 498.97

Add Depreciation 58.22 87.34 87.34 87.34 87.34 87.34 87.34 87.34
Net Cash Flow from
Operation 133.57 276.90 351.17 390.90 431.23 472.28 513.94 586.30
                 
Cash From
Financing                
                 

Equity 1,148.40 - - - - - - -
Grant-FPI                

Term Loan 350.00 - - - - - - -

Increase in WC
Borrowing 318.75 243.45 88.85 44.43 44.43 44.43 44.43 88.86
Increase in Provision
for Tax 32.29 48.95 31.83 17.03 17.28 17.59 17.85 31.01
Increase in Deferred
Tax Liability 20.54 6.11 1.26 (2.86) (6.36) (9.34) (9.35) -
Total Cash Flow 2,003.55 575.41 473.10 449.50 486.58 524.96 566.86 706.17
                 
Use of Fund                

Capital Expenditure 28.05              

Capital Expenditure 1,548.74 - - - - - - -

Security Deposit
with BSEB 1.76 - - - - - - -
                 

Increase in WC 425.00 324.60 118.46 59.23 59.23 59.23 59.23 118.48

Repayment of
Principle - 44.34 50.24 56.90 64.44 72.95 61.13 -
Increase in Deferred
Tax Assets - - - - - - 2.51 14.02
Pre Operating
Expenses - - - -        
Total Uses 2,003.55 368.94 168.70 116.13 123.67 132.18 122.88 132.49
Opening Cash -
Balance (0.00) 206.47 510.87 844.23 1,207.14 1,599.92 2,043.90

Surplus/Defecit (0.00) 206.47 304.40 333.36 362.91 392.77 443.99 573.68

Closing Cash
Balance (0.00) 206.47 510.87 844.23 1,207.14 1,599.92 2,043.90 2,617.59

7.5.5 PROJECTED BALANCE SHEET

Project Balance Sheet

Year 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30

Liabilities                

Equity Capital 1,148.40 1,148.40 1,148.40 1,148.40 1,148.40 1,148.40 1,148.40 1,148.40

Reserve & Surplus 75.34 264.91 528.74 832.30 1,176.20 1,561.14 1,987.74 2,486.71
Preoperative
Expenses (28.05) (28.05) (28.05) (28.05) (28.05) (28.05) (28.05) (28.05)
Grant/Subsidy                

Net worth 1,195.69 1,385.26 1,649.09 1,952.65 2,296.55 2,681.49 3,108.09 3,607.06

Term Loan 350.00 305.66 255.42 198.52 134.08 61.13 (0.00) -

Working Capital
Loan 318.75 562.20 651.05 695.47 739.90 784.33 828.75 917.61

Provision for Tax 32.29 81.24 113.07 130.10 147.38 164.97 182.83 213.84
Deferred Tax
Liabilities 20.54 26.65 27.91 25.05 18.69 9.35 - -
Total Liabilities 1,917.27 2,361.01 2,696.54 3,001.80 3,336.60 3,701.27 4,119.67 4,738.51
                 

Assets 1,548.74 1,548.74 1,548.74 1,548.74 1,548.74 1,548.74 1,548.74 1,548.74

Less: Accumlated
Dep 58.22 145.56 232.90 320.24 407.58 494.92 582.26 669.60
Net Fixed Assets 1,490.52 1,403.18 1,315.84 1,228.50 1,141.16 1,053.82 966.48 879.14

Security Deposit 1.76 1.76 1.76 1.76 1.76 1.76 1.76 1.76
Upfront Fees for
Leased Land                
Working Capital 425.00 749.60 868.07 927.30 986.53 1,045.77 1,105.00 1,223.48
Cash & Bank
Balance - 206.47 510.87 844.24 1,207.15 1,599.93 2,043.92 2,617.60

Deferred Tax Assets - - - - - - 2.51 16.53

Total Assets 1,917.28 2,361.01 2,696.53 3,001.80 3,336.60 3,701.28 4,119.67 4,738.51
 7.4.1. BREAK EVEN ANALYSIS

Break Even Analysis

Year 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
Capacity 50% 60% 70% 75% 80% 85% 90% 100%

1,575.0 2,100.0
Quantity Produced 875.00 0 1,837.50 1,968.75 0 2,231.25 2,362.50 2,625.00
                 
3577.24 3832.76 4343.79
Sales 1703.45 3066.21 5 3 4088.28 8 4599.315 5110.35
                 
Fixed Cost                
                 
Employee Cost 171.00 171.00 171.00 171.00 171.00 171.00 171.00 171.00
Repair & Maintenance 15.49 15.49 15.49 15.49 15.49 15.49 15.49 15.49
Insurance 11.34 11.34 11.34 11.34 11.34 11.34 11.34 11.34

Adm & Selling Exp 113.56 229.97 268.29 287.46 306.62 325.78 344.95 383.28

Interest on Long Term 32.81 41.24 35.38 28.71 21.19 12.65 3.23 -

Depreciation 58.22 87.34 87.34 87.34 87.34 87.34 87.34 87.34

                 
Total Fixed Cost 402.43 556.37 588.84 601.33 612.98 623.60 633.34 668.44

Cash Fixed Cost 344.20 469.03 501.50 513.99 525.64 536.26 546.01 581.10
Variable Cost                
                 

1,731.2 2,308.3
Raw Material Cost 961.80 4 2,019.78 2,164.05 2 2,452.59 2,596.86 2,885.40

Ingredient Cost 6.36 11.45 13.36 14.31 15.26 16.22 17.17 19.08

Packing Cost 17.50 31.50 36.75 39.38 42.00 44.63 47.25 52.50

Power Cost 4.23 7.62 8.89 9.53 10.16 10.80 11.43 12.70

Fuel Cost 9.73 17.51 20.43 21.89 23.34 24.80 26.26 29.18
Water Consumption
Cost 0.27 0.49 0.53 0.57 0.61 0.65 0.69 0.81

Business Promotion 110.00 245.30 286.18 306.62 327.06 347.50 367.95 408.83

Insurance 19.72 35.49 41.40 44.36 47.32 50.28 53.23 59.15

Repair & Maintenance 9.86 17.74 20.70 22.18 23.66 25.14 26.62 29.57
Employee Cost
 12.00 21.60 25.20 27.00 28.80 30.60 32.40 36.00
                 

2,119.9 2,826.5
Total Varaible Cost 1,151.47 3 2,473.22 2,649.88 4 3,003.20 3,179.86 3,533.22
                 

1,261.7
Contribution 551.98 946.28 1,104.03 1,182.89 4 1,340.60 1,419.45 1,577.13

% Contribution 32.40 30.86 30.86 30.86 30.86 30.86 30.86 30.86

1,802.8 1,986.1
Breakeven Point 1,241.90 0 1,907.94 1,948.42 5 2,020.58 2,052.16 2,165.94

% Breakeven Point 72.91 58.80 53.34 50.84 48.58 46.52 44.62 42.38

1,020.2
Break Even Quantity 637.92 926.03 980.04 1,000.83 1 1,037.90 1,054.12 1,112.57

Cash Break Even 1,519.8 1,703.1

Point 1,062.22 0 1,624.95 1,665.43 7 1,737.59 1,769.17 1,882.95

% Break Even Point 62.36 49.57 45.42 43.45 41.66 40.00 38.47 36.85

Cash Break Even QTY 545.62 780.67 834.68 855.47 874.85 892.54 908.76 967.20

Pay Back Period                

Year 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
                 

Capital Investment 1,548.74              

Net Cash Inflow 133.57 276.90 351.17 390.90 431.23 472.28 513.94 1,465.44

1,583.7
Cumlative Cash Inflow 133.57 410.47 761.64 1,152.54 7 2,056.05 2,569.99 4,035.43
                 
Is Payback Period
achived No No No No Yes Yes Yes Yes
                 
4.41
Payback Period     Years          

Vitthala Food Private Limited

 8. SCHEDULE OF IMPLEMENTATION

As described earlier, the installation of the proposed unit comprises getting necessary approvals,
construction of plant building, erection of plant and equipments, preparation of ancillary buildings,
utilities and services and auxiliary facilities. This thus is an extensive task demanding coordination of
various activities.

PARTICULARS EXPECTED COMPLETION MONTH

SIPB approval Done

Land Acquisition Completed

Land & Site Development Completed

Building & Other Civil Work Completed

Placement of order for Plant and Machinery July 2022

Plant and Machinery installation Start August 2022

Trial Run August 2022

Commercial Production August 2022

As can be seen from the above implementation schedule, promoters have already completed/initiated
some critical activities. As informed by the promoters the delivery of the required plant and machineries
would also be done in time.

7.4.2. SENSITIVITY ANALYSIS

Sensitivity Analysis Avg. DSCR Project IRR NPV (In Lakhs of Rs.)
 Base Case 4.65 21 % 2143.62

Increase in Project Cost 4.47 26% 2052.12

by 10 %

Decrease in Sales by 4.57 20 % 2093.89

2%

The above table indicates that the IRR and DSCR for the project are not witnessing significant variation
with increase in project cost even by 10%. However, Avg. DSCR and IRR of the Company with decrease
in revenue by 2% or increase in operating cost by 2% are at healthy position which is quite acceptable
and indicates that the project would still be able to meet its debt obligations

8. SCHEDULE OF IMPLEMENTATION