I: INTRODUCTION 4

1.1 Meaning of Agro Based Industries 4

1.2 Importance of Agro-Based Industries: 4
1.3 Types of Agro-Based Industries 4
1.4 Constraints of Agro-Based Industries: 5
1.5 Suggestions for the Development of Agro-Based Industries: 6
1.6 Scenario of Aonla Production 6
1.6.1 World Scenario of Aonla production. 6
1.6.2 Indian scenario of Aonla Production: 8
1.6.2 Aonla Candy Brands 9
1.7 Objectives of Study: 10
II. REVIEW OF LITERATURE 11
2.1 Economic structure 11
2.2 SWOT Analysis 11
2.3 Challenges 12
2.4 Supply Chain Management 13
3.1. Selection of district and locality. 15
3.2.1 Selection of Study Unit: 15
3.2 Survey and Selection: - 15
3.3 Collection of Data:- 16
3.3.1 Primary data collection: - 17
3.3.2. Secondary data collection: - 17
3.4. Analysis of data: - 17
IV. RESULT AND DISCUSSION 19
4.1 General Information of the Industry 19
Product mix of AT and sons: 20
4.2 Process of making Aonla candy: 20
4.3 Economics of AT and sons: 21
1. Break Even Point: 28
2. Margin of Safety 29
3. Per cent Margin of safety: 29
4. Financial Ratios: 29
4.4 Marketing channel 30
4.5 SWOT Analysis 33
4.5.1 STRENGTHS 33
 4.5.2 Weaknesses: 33
4.5.3. Opportunities 33
4.5.4. Threats: 33
4.6 Problems and Solutions 33
4.6.1 Problems: 33
4.6.2 Solutions: 34
4.7 4 Ps of marketing: 34
Product: 34
Price: 34
Place: 35
Promotion: 35
4.8 Findings: 35
4.9 Conclusion: 36
5. BUSINESS PLAN: 37
4.1 Why this product? 37
4.2 Benefits of jaggery over sugar 37
4.3 Porter’s five forces: 38
1. New Entry: 38
2. Buyer: 38
3. Substitution: 39
4. Supplier: 39
5. Competitive Rivalry 39
4.4 SWOT Analysis 39
1. Strengths 39
2. Weaknesses: 39
3. Opportunities: 40
4. Threats: 40
4.5 STP Model: 40
4.6 Business canvas model: 41
4.7 Economics of the business plan: 43
Break Even Point: 50
Margin of Safety 50
Per cent Margin of safety: 50
Financial Ratios: 51
4.8 Marketing channels: 51
 I: INTRODUCTION

1.1 Meaning of Agro Based Industries

Agro-based industries are comparatively easy to establish and provide income in
the rural areas with less investment. These industries facilitate effective and efficient
utilisation of agricultural raw materials’-based industries transmit an industrial – culture
in rural areas thus bringing about modernisation and innovation in agriculture itself.

1.2 Importance of Agro-Based Industries:

 They are important because agro-based industries support a huge part of our
population by providing them with employment.
 They help us to enhance our exports and foreign exchange.
 They support the development of backward and uneducated people, farmers and
women by giving them the opportunities to enhance their financial condition.
 They are highly responsible for the development of rural areas and the lives of
people living there.
 They are beneficial for the farmers dependent on agriculture as it stabilizes their
income.
 It also helps by preventing the migration of rural population to urban areas. It
reduces the chances of exploitation of farmers by middlemen.
 Encourage farmers to have better produces they get better prices for their
produce.

1.3 Types of Agro-Based Industries

Agro-based industries are classified into various sub-divisions based on the raw
material they use and the service and output provided by them. There are majorly four
types of agro-based industries present in the market, which are as follows-

Agro-processing units

In these types of units, no new products are produced. Instead of producing new
products they just process the raw materials in a way to increase their lifetime by adding
preservatives and package them in a way to make their transport easier and cheaper.
Agro-produce manufacturing units

In such units the production of new completely different end product takes place.
Here usually, the raw materials are converted into goods that are more suitable for
consumers.

Agro input manufacturing units

These units are mainly responsible for the development of the agriculture sector
as they produce goods that are majorly responsible for increasing the productivity of the
agriculture sector including its mechanization.

Agro service centre

These units are basically units that provide agriculture-related services to people
like farm equipment repairing, educational workshops etc.

1.4 Constraints of Agro-Based Industries:

 We can identify a number of constraints which have inhibited agro-industrial
growth. The concern for backward area development overshadowed the
efficiency consideration and we evolved policies for industrial dispersal which
created sick units. Agglomeration has a logic of its own and the industrial
location policy has to keep this dynamism in view.
 The absence of information, lack of awareness about opportunities and limited
knowledge about technology, and production systems is a major entry barrier for
rural entrepreneurs.
 The productivity of the rural labour is conditioned by the rural culture, the
available skills and training and capital intensity of the projects. Under the
prevailing conditions, the productivity of rural labour is low and the marginally
lower wage rates in rural areas do not compensate for this low productivity.
Under the circumstances the subsidies and incentives on capital investment have
promoted capital intensity even in agro-industries and has had detrimental impact
on labour intensive manufacturing.
 It is the organisational institutional mechanism that translates policies and
programmes into reality. Unfortunately, the rural entrepreneur is left without
support systems of any significance.
  The investment in agricultural sector was aimed primarily towards providing
wage goods for the urban industrial sector. Rural employment generation strategy
should have taken cognizance of the agro-industrial linkages and paid greater
attention to dynamic efficiency in the rural sector. But the policies towards the
village and small industries neglected promotion of such industries in rural areas
by denying dynamic comparative advantage in the rural sector.
 The policy bias against wage-employment was further accentuated by the
insistence on promoting self-employment in all development programmes.
 No positive effort was made to involve the rural elite, those who possess capital
and human resources to catalyse the developmental process.

1.5 Suggestions for the Development of Agro-Based Industries:

A strategy of development of agro-based industries should consist of the
following ingredients:

 The growth and expansion of agro-based industries should form an inseparable

part of the overall programme of economic and industrial development of the
country.
 The related groups of agro-based industries should be set up in a coordinated
manner so that the utilisation of by-products is simultaneously possible.
 The new institutional framework must enable a large number of small farmers to
participate in and benefit from agro-processing. This underlines the need to
develop a co-operative network with a view to harmonizing the interests of the
producers, processors and consumers and to avoiding excessive dependence on
private corporations and multinationals.
 Advanced management and marketing methods should be introduced in agro-
based industries which cater to the export demand.
 Both backward and forward linkages should be ensured in respect of agro-based
industries so that maximum growth impulses are generated.

1.6 Scenario of Aonla Production

1.6.1 World Scenario of Aonla production.
Table 1.1 Country wise aonla production

Rank Area Production Value (in tons) 2017

 1 Indonesia 1,83,00,000
2 Philippines 1,53,54,334
3 India 1,19,30,000
4 Brazil 28,90,286
5 Sri Lanka 25,13,000
6 Viet Nam 13,03,826
7 Papua New Guinea 12,07,500
8 Mexico 11,70,988
9 Thailand 10,10,033
10 Malaysia 6,24,727
11 United Republic of Tanzania 5,30,000

12 Myanmar 5,10,412
13 Vanuatu 3,95,000
14 Solomon Islands 3,84,000
15 Ghana 3,66,183
16 Dominican Republic 2,86,934
17 Nigeria 2,66,045
18 Mozambique 2,60,000
19 China, mainland 2,54,620
20 Jamaica 2,37,300
(Source: Worldatlas)
 Chart Title
20,000,000

16,000,000

12,000,000

8,000,000

4,000,000

0
l ka a ar s na lic ria ue nd ica
sia es dia zi a
am e ico nd si
a
ni atu d
o ne ppin In Bra Lan t N uin ex aila alay nza anm anu slan Gha pub ige biq inla ama
d
In Phi
li i
Sr V ew
ie G M Th
M f Ta My V on
I Re N am ma J
o m an oz a,
a N ic lo ic M in
pu bl So in Ch
Pa epu om
R D
ited
n
U

Production Value (in tons) 2017

Figure 1.1 Top 20 aonla producing countries

1.6.2 Indian scenario of Aonla Production:
Table 1.2 State wise aonla production and percent share

Sr No. State Production (000 Share (%)

tonnes)
1 Uttar Pradesh 384.32 35.79
2 Madhya Pradesh 302.18 28.14
3 Tamil Nadu 152.87 14.24
4 Gujarat 81.9 7.63
5 Chhattisgarh 43.29 4.03
6 Assam 17.76 1.65
7 Bihar 14.92 1.39
8 Maharashtra 12.25 1.14
9 Jammu & Kashmir 12.1 1.13

10 Rajasthan 11.19 1.04

11 Andhra Pradesh 10.76 1
12 Haryana 10.75 1
13 Punjab 7.7 0.72
14 Nagaland 2.88 0.27
 15 Uttarakhand 2.65 0.25
16 Himachal Pradesh 1.97 0.18

17 Jharkhand 1.49 0.14

18 Mizoram 1.32 0.12
19 Telangana 0.71 0.07
20 Karnataka 0.68 0.06
21 Other 7.4 0.68
  Total 1,081.09  
(Source: National Horticulture Board)

The above table 1.1 shows the top aaonla producing states in India. Uttar Pradesh
is the highest producer of aaonla with total production of 384.32 thousand tonnes.

Chart Title
Other
Telangana
Jharkhand
Uttarakhand
Punjab
Andhra Pradesh
Jammu & Kashmir
Bihar
Chattisgarh
Tamil Nadu
Uttar Pradesh
0 50 100 150 200 250 300 350 400 450

Figure 1.3 India scenario of Aonla production:

1.6.2 Aonla Candy Brands
1. Sri Sri Tattva: Formerly known as Sri Ayurveda, this is a well-known brand in the
name of Ayurvedic products. A brand of Sri Sri Ravishankar, founder of the Art of
Living, Sri Sri offers amla candy in paan, mango and other flavours priced at nearly 160
rupees for 400 grams.

2. Patanjali: For ayurvedic medicines, Patanjali has higher popularity than any other
brand in India. Patanjali's Amla candy is not only yummy but is also chemical free.
3. Organic Amla Yummies: This brand is available on Amazon, Paytm and other E-
commerce partners. The jar of 100gm of Amla candies looks like a jar of honey. Really
the packaging is great, but the price is costlier as compared to other equivalent brands.

4. Desivdesi: Delicious nutritional kokum flavoured amla candies of this brand are

available again on Amazon, Paytm, etc. in varied sizes. Starting from small packs of 40
grams to heavier quantities.

5. New Tree: Sweet amla candy and Chatori amla candy from this brand are available on
www.newtree.co.in and even on Amazon, Paytm etc.

These brands might not be as delicious as homemade ones but they, at least, can satiate
someone who yearns for them even in the summer season.

1.7 Objectives of Study:

 To study the current scenario.
 To study the economic structure of selected unit.
 To Analyze the marketing chain for selected product.
 To Study the SWOT analysis of AT & Sons.
 To study the challenges faced by AT Sons and give suggestions to selected unit.
 II. REVIEW OF LITERATURE

2.1 Economic structure

Al-Malki and Juan (June 2015) this study determined the effects of cost-
volume profit analysis in the decision making of agro processing industries. The study
combined both survey research and longitudinal research design. The results revealed
that the sale value of a product and quantity of product manufacture has positive effects
on profit made on product, and also there is a significant relationship between the cost of
production and profit. This study also helps to known break-even point where firm is
neither in profit nor loss.

Richard W. Goggins, Peregrin Spielholz and Greg L. Nothstein (2008):

Proponents of ergonomics often speak of the benefits that organizations reap when
implementing both comprehensive ergonomics programs and individual control
measures to reduce work-related musculoskeletal disorders (WMSDs). These benefits
include not only reduced number of injuries and injury costs, but also reduced turnover
and absenteeism, improved product quality, and increased productivity. However,
reporting of these benefits in peer-reviewed journals remains limited, and there may be a
bias toward reporting only positive outcomes (Silverstein and Clark, 2004, Volinn,
1999). Fortunately, there is an increasing trend toward performing cost benefit analyses
(CBA) related to safety and health interventions, and many CBA models have been
developed that can be used for ergonomics interventions (Oxenburgh et al., 2004,
International Labour Organization [ILO], 2002, Mossink, 2002).

2.2 SWOT Analysis

Mahajan and Patil (2019) Indian ago-based industry have potential to grow as a
major player in the development of the nation’s particularly in backward area of the
country. It is necessary to develop this industry as an important tool to change rural
economy of the country. Indian ago-based industry has great strengths and more
opportunities in the competitive business environment. Indian ago-based industry has
some weakness and the threats which are necessary to eliminate with careful solutions at
macro level and micro level. India has to be increased the agriculture production as per
demands of the ago based industry at the large extent with the quality. It requires making
the research on different aspects of the ago based industry. There is need of the revision
of government schemes in the light of emerging business environment at national and
international level. With innovations, management skills and technology ago-based
industry can come up as major player in economy as well as a tool for rural development.
It requires rural industry potential survey to be conducted on the basis of rural resources
management.

Kumar and Nain (2013) agriculture in India today is constrained by various

factors. We have created history by producing 250 mil-lion MT of food grains in 2012-
13, but this has been accompanied by land degradation, declining size of land holdings
and many other related problems. The present paper analyses the strengths, weaknesses,
opportunities and threats to Indian agriculture. While the strength lies in having the
largest cultivable land with record food grains production, our weakness lies in having
low yields, less value addition and food processing and large amount of post-harvest
losses. The paper also dwells upon where the opportunities exist and how the
opportunities can be further strengthened to augment the yield and income of the farming
community the agriculture sect

2.3 Challenges
The paper has been started with the hypothesis on the association between the
type of industry or product and problem faced by them. The study revealed that there is
no significant relation between the products and problems. In other words, the ago based
industries are facing plethora of problems like the agriculturist. For the development of
agriculture, the industries which use agricultural produces as input need to be developed.
Agriculture can progress in particular region, if demand is established with a high price
for agricultural produce. This can progress both agriculture as well as ago based
industries substantially.
The paper has been started with the hypothesis on the association between the
type of industry or product and problem faced by them. The study revealed that there is
no significant relation between the products and problems. In other words, the ago based
industries are facing plethora of problems like the agriculturist. For the development of
agriculture, the industries which use agricultural produces as input need to be developed.
Agriculture can progress in particular region, if demand is established with a high price
for agricultural produce. This can progress both agriculture as well as agro based
industries substantially.
Kaikai and Mithila (2019) paper has been started with the hypothesis on the association
between the type of industry or product and problem faced by them. The study revealed
that there is no significant relation between the products and problems. In other words,
the ago based industries are facing plethora of problems like the agriculturist. For the
development of agriculture, the industries which use agricultural produces as input need
to be developed. Agriculture can progress in particular region, if demand is established
with a high price for agricultural produce. This can progress both agriculture as well as
ago based industries substantially.

Bharadwa, et.al. (2017) challenges and Constraints of Marketing and Export of Indian
Spices from India and International conference on technology and Business
Management. K. Bharadwaj, B. K. Singh, N. K. Singh conducted a study on “Challenges
and Constraints of Marketing and Export of Indian Spices from India” In this study they
showed all the problems in food sector related to marketing and exporting zone i.e., the
Low productivity, poor product quality, insufficient mechanization and Argil Extension
is not market oriented. Various problem faced by production, processing and marketing
of products, and also known about various suggestions to overcome the problem in
processing, production.

2.4 Supply Chain Management

Patel and Deshpande (Dec 2015) A proper organize supply chain is usually important
in food processing industry. Supply Chain Management is a systematic approach to
improve the total productivity of food processing industries by reducing timing,
providing quality raw material flow from farm to industry, review has been conducted
on various properties which affect harvesting and transport issues in food processing
supply chains, harvesting is done as per maturity period of food and then transportation
for safe delivery and lower time to milling with the help of RID technology and supply
chain management. SCM and RFID are the ways to improving productivity reducing
lead time of crushing to mill.

Dharni and Sharma (2015) included fifty food processing units for study. Survey
queries focused on a range of issues such as recognition of supply chain management as
a separate functional area, use of information technology applications, and use of cold
chain facilities. An attempt was also made to explore supply chain management practices
adopted by food processing units. Results indicate that logistics and supply chain
management is still in its infancy in food processing sector. There is considerable scope
improving supply chain management practices especially in context of information
quality, and postponement.

III. RESEARCH METHODOLOGY

Research methodology is the specific procedures or techniques used to identify,
select, process, and analyse information about a topic. In a research paper, the
methodology section allows the reader to critically evaluate a study's overall validity and
reliability.

3.1. Selection of district and locality.

The geographical area of Pune district comprises of 5.09 percent of the area of
Maharashtra state. The agriculture occupies major share in the economic activities in the
district, followed by industries. Pune district occupies 3.18 percent total industrial area.

3.2.1 Selection of Study Unit:

For the study of industry AT and Sons bnana chips and amla murabba was
selected. Because it provides good taste and quality to customer.

3.2 Survey and Selection: -

The survey helps to select the company according to the objective and helps in
getting the required knowledge. Following are the enterprises from which AT and sons
banana chips and amla candy was selected.
Table 2.1 Survey for selection of industry

Sr.No Name of Comapany Establishment Address

Year
1 Freeze Dried Cafune Foods 2012 MIDC , Baramati
2 Baulu India Bakes and sweets 2015 MIDC, Baramati
Pvt Ltd
3 AT and sons banana chips and 2020 MIDC, Baramati
amla murabba

3.3 Collection of Data:-

Data collection is defined as the procedure of collecting, measuring and
analyzing accurate insights for research using standard validated techniques. A
researcher can evaluate their hypothesis on the basis of collected data. In most cases,
data collection is the primary and most important step for research, irrespective of the
field of research. The approach of data collection is different for different fields of study,
depending on the required information. The most critical objective of data collection is
ensuring that information-rich and reliable data is collected for statistical analysis so that
data-driven decisions can be made for research.  

Data collection

Primary data collection Secondary data collection

Figure 3.1 Data collection

3.3.1 Primary data collection: -
Primary data means first-hand information collected by an investigator. It is
collected for the first time. It is original and more reliable. For example, the population
census conducted by the government of India after every ten years is primary data.

Personal Interview: - A information is taking by visiting owner face to face. Due to this
more and deep information is get. We collected information of AT and sons by asking
questions personally to the owner of the industry.

Observation: - By visiting a enterprise and observing each thing in industry more

information is get. We collected information like process of making aonla candy by
observation at the unit.

3.3.2. Secondary data collection: -

The information is collected from various sources like newspaper, journals,
internet, website, YouTube, etc.

I collected information about other things through internet. Information like current
scenario, review of literature (which was taken from Google Scholar) and all came under
the secondary sources.

3.4. Analysis of data: -

1. Total cost = Fixed cost+ Variable cost

2. Total fixed cost = Depreciation + Interest on fixed capital

3. Total variable cost = Input cost+ labor cost+ electricity etc.

4. Junk value = Original amount × 10%

Original amount−Junk value

6. Depreciation =
Remainlife of asset

7. Net income = Total income – Total cost

Present worth of benefit

8. BCR =
Present worth of cost

10. NPW = Net income × discount factor

11. IRR =
Discount rate Difference between NPW at HDR
Absolute difference at LDR +two discount rates × between NPW at two discount rates

12. Break Even Point:

¿ cost
In physical terms = Selling price per plant
variable price per plant

¿ cost
In monetary term = variable price per plant
1−
selling price per plant

13. Margin of safety:

Physical term = Total yield - BEP in quantity

Monetary term= Total return- BEP in monetary term

BEP ∈quantity
14. % margin of safety = Physical term=
Total yield × 100

BEP ∈monetary
Monetary term=
Total return ×100

Initial investment
15. Payback period =
Total annual income

16. Market efficiency = Farmer's price/marketing margin + marketing cost

17. Total Marketing Cost: Marketing cost of Producer + MC of Wholesaler + MC of

Retailer

18. Market margin: Selling price – (price paid + Marketing Cost)

19. Price Spread: Price received by consumer – Price received by producer.

20. Producer share in consumer ruppe = price received by producer price paid by
consumer × 100
 IV. RESULT AND DISCUSSION

The results section is a section containing a description about the main findings
of a research, whereas the discussion section interprets the results for readers and
provides the significance of the findings.

4.1 General Information of the Industry

Table 4.1 General Information of Retail Store

Sr. No Particular Information

1. Name AT & Sons
2. Establishment Year 2020
3. Area 2R
4. Owner Name Mrs. Vaishali Hitesh Talale
5. Education MBA
6. Address Suryanagari, Baramati
7. GST No.
8. FSSAI No. 2151915140000086
9. Business activities Manufacturing and Marketing
Product mix of AT and sons:

Banana
Chips
Products
Aonla
Candy

Figure 4.1 Product mix of AT and sons:

AT and sons basically have 2 products, Banana chips and Aonla candy.

4.2 Process of making Aonla candy:

1. Fruit Washing: Aonla fruits are first washed in clean water to remove all the
impurities on the surface.
2. Water Blanching and slicing: Fruits are then blanched (boiled in water) and
then sliced into 4 pieces each.
3. Syrup treatment: Treatment of sugar syrup is given to the fruits for the
penetration of sugar into the fruit through osmosis.
4. Preparation of syrup: Sugar syrup is prepared with the concentration of 48 brix.
Measured through osmosis
5. Steeping in sugar syrup: Aonla is then steeped into the sugar syrup for 24 hours.
Then its washed.
6. Steeping in sugar syrup (58° brix): Then after that the fruit is steeped in 58°
brix solution for 24 hours and then washed.
7. Steeping in sugar syrup (72° brix): After that the fruits are steeped into 72° brix
solution for 24 hours and then washed.
 8. Drying: Then the fruits are dried in the sun.
9. Cooling: Then the fruits are cooled at room temperature.

Syrup treatment
Amla fruit washing Water blanching (osmosis treatment
with water and slicing increased syrup
penetration)

Repeat the process

Steeping of amla in Preparation of
with syrup of 58°B
sugar syrup for 24 syrup with sugar
for next 24 hours
hours and washing upto 48° Brix
and washing

Repeat the process

with syrup of 72°B
Drying Cooling
for next 24 hours
and washing

Filling in PET jars

Figure 1.2 Process of making Aonla candy

4.3 Economics of AT and sons:

Table 2.2 Product Percent Share

2021-22 2020-21
Sr Name of
Production in % Share of Productio %
no plant
Kg product n Share

1 Banana Chips 6,500 55.32 6000.00 58.71

2 Amla Candy 5,250 44.68 4220.00 41.29

Total 11,750 100.00 10220.00 100

 The above table consists of product per cent share. Here, Banana chips has the
highest share with 55.32% and then comes the aonla candy with 44.68 per cent share
with production of Rs. 5250 kg production in the year 2021-22.

Table 4.3 Initial Investment

Sr Particulars Un Quan Rate (in Amo % Amount for

No it tity Rs) unt Share Aamla Candy
A Deposit 1500 7.51 6702.13
0
B Machinery
1 Slicing No 1 65000 6500 32.56 29042.55
Machine s. 0
2 Packing No 2 1300 2600 1.30 1161.70
Machine s.
3 Weighing No 2 3654 7300 3.66 3261.70
balance s.
4 Sun dryer No 1 35000 3500 17.53 15638.30
s. 0
5 Steamer No 1 2450 2450 1.23 1094.68
s
6 Refractometer No 1 14450 1445 7.24 6456.38
s 0
C Other
1 Cauldron No 2 3500 7000 3.51 3127.66
s.
2 Baking Tray No 5 425 2125 1.06
s
3 Knife No 4 150 600 0.30 268.09
s.
4 Peeler No 2 60 120 0.06 53.62
s.
5 Mesh No 2 1000 2000 1.00 893.62
Skimmer s.
 6 Rack No 2 5000 1000 5.01 4468.09
s. 0
7 Tub No 4 450 1800 0.90 804.26
s.
8 Table 1 3500 3500 1.75 1563.83
9 Chair No 3 750 2250 1.13 1005.32
s
10 Shegadi 2 3200 6400 3.21 2859.57
11 Initial 7250 3.63 3239.36
maintenance
12 License fee No 1 9,799 9799 4.91 4378.28
s
13 Miscellaneous No 1 5,000 5000 2.50 2234.04
Assets s
Total       1996 100.0 89202.64
44 0
10% interest 8920.26

The above table shows of the initial investment of AT and sons. Total initial
investment is Rs. 199644 while the per cent share for the selected product, which is aonla
candy is Rs. 89202.64. Highest initial investment for a single item is for slicing machine
which costs around Rs. 65000.

Table 4.4 Depreciation

Sr Particula Am Junk Purch Expe Remai Depr Depreiciation for

N rs oun valu ase cted ning eciati Aonla Candy
o t e year life life on (2021)
A Deposit 150 1500 2019
00
B Machiner
y
1 Slicing 650 6500 2019 15 12 4875. 2178.19
Machine 00 00
2 Packing 260 260 2019 15 12 195.0 87.13
Machine 0 0
3 Weighing 730 730 2019 15 12 547.5 244.63
balance 0 0
4 Sun dryer 350 3500 2019 12 9 3500. 1563.83
00 00
5 Steamer 245 245 2019 10 7 315.0 140.74
0 0
6 Refracto 144 1445 2019 10 7 1857. 830.11
meter 50 86
C Other 0.00
1 Cauldron 700 700 2019 10 7 900.0 402.13
0 0
2 Baking 212 212. 2019 10 7 273.2 122.07
Tray 5 5 1
3 Knife 600 60 2019 5 2 270.0 120.64
0
4 Peeler 120 12 2019 5 2 54.00 24.13
5 Mesh 200 200 2019 5 2 900.0 402.13
Skimmer 0 0
6 Rack 100 1000 2019 8 5 1800. 804.26
00 00
7 Tub 180 180 2019 8 5 324.0 144.77
0 0
8 Table 350 350 2019 8 5 630.0 281.49
0 0
9 Chair 225 225 2019 5 2 1012. 452.39
0 50
10 Shegadi 640 640 2019 8 5 1152. 514.72
0 00
11 Initial 725 725 2019 10 7 932.1 416.49
Mantaine 0 4
nce
 12 License 979 979. 2019 9799. 4378.28
fee 9 9 00
13 Miscellan 500 500 2019 10 7 642.8 287.23
eous 0 6
Assets
Total 199 13395.35
644
Interest 8920.26
(10%)
Total 199 29980 22315.61
644 .07

The above table consists the depreciation on initial investment. The method used
to calculate depreciation is straight line method. Total fixed out for aonla candy is Rs.
22315.26. Fixed cost per kg for aonla candy is Rs. 4.5

Table 4.5 Per kg cost of Aonla candy

Sr no Particulars 2021-22 per kg 2020-21 per kg

1 Yield of Candy/year 4,960 3,850
2 Fixed cost 22315.61 4.50 31,372 8.148
3 Variable cost 1001079.83 201.83 6,94,288 180.33
4 Total cost 1023395.44 206.33 725659.81 188.48
5 Production cost (Rs/kg) 206.33   188.483  

Per kg fixed cost for aonla candy is Rs. 4.5. Per kg variable cost for aonla candy
is Rs. 201.83. While the total cost per kg is Rs, 206.33.

Table 4.6 Working capital of Aonla candy

Sr.N Amou Per cent share on Aonla

Particulars Unit Qty Rate
o nt candy
A Raw Material
1 Aamla Kg 5,25 110 57750 577500.00
0 0
 2 Sugar Kg 175 30 52500 52500.00
0
3 Citric acid kg 3.6 1000 3600 3600.00
B Rent Mont 12 1200 14400 64340.43
h 0 0
C Labour charges Mont 12 3000 36000 160851.06
h 0 0
D Electricity Mont 12 1,45 17400 7774.47
Charges hs 0
E Packaging & Packing 17,5 17,500 7819.15
Charges 00
F Transportation 21,0 21,000 9382.98
Charges 00
G Pamplet and 14,0 14,000 6255.32
banner 00
Other 8,50 8,500 3797.87
0
Subtotal 12160 893821.28
00
Interest @12% 14592 107258.55
0
  Total       13619 1001079.83
20
Per Kg Variable 190.68 201.83
cost

The above table consists of the working capital for aonla candy. Total working
capital is Rs. 10,01,079.83. Fixed cost per kg for aonla candy is is Rs. 201.83

Table 4.7 Total cost Net income and Payback period

Year Fixed Working Total Sales price Total Net

cost capital cost quantity per kg income income
2019- 199644 0 199644. 0 0 0 -
 20 .00 00 199644.
00
2020- 31371. 694288.22 725659. 3850.00 210 808500 82840.1
21 59 81 9
2021- 22315. 1001079.83 102339 4,960 215 1066400 43004.5
22 61 5.44 6
2022- 23877. 1071155.42 109503 5,456 220 1200320 105286.
23 71 3.13 87
2023- 25549. 1146136.30 117168 6,002 225 1350360 178674.
24 15 5.44 56
2024- 27337. 1226365.84 125370 6,602 230 1518404. 264701.
25 59 3.43 8 37
Total             474863.
55
Average 94972.7
1

The above table consists of the fixed cost, variable cost, total cost, gross income
and net income of the AT and Sons for aonla candy.

Total Investment
Payback Period = =2.1
Net Income per year

Payback period of AT & Sons is 2.1 which means it would take 2 years 1 month
and 6 days to recover the initial investment.

Table 4.8 BCR

Sr no Year Benefit Cost D.F @15% PWB PWC

1 2020-21 808500 725659.8097 0.87 703043.48 631009
2 2021-22 1066400 1023395.445 0.76 806351.61 773834
3 2022-23 1200320 1095033.13 0.66 789229.88 720002
4 2023-24 1350360 1171685.44 0.57 772072.71 669915
5 2024-25 1518404.8 1253703.43 0.50 754915.54 623312
  TOTAL       3825613.2 3418071.70
 Present Worth of benefits
BCR = = 1.12
Present worth of cost

BCR of AT and Sons is 1.12. This depicts that the company earns Rs. 0.12 when
it spends Rs. 1

Table 4.9 NPW

Sr no Year Benefit Cost Net income DF @ 15% NPW

1 2019-20 0.00 199644.00 -199644.00 0.87 -173603.48
2 2020-21 808500.00 725659.81 82840.19 0.87 72034.95
3 2021-22 1066400.00 1023395.44 43004.56 0.76 32517.62
4 2022-23 1173040.00 1095033.13 47305.01 0.66 31103.81
5 2023-24 1290344.00 1171685.44 52035.51 0.57 29751.47
6 2024-25 1419378.40 1253703.43 57239.06 0.50 28457.93
  TOTAL         20262.31

The above table consists of Net present worth of AT and sons for aonla candy.
NPW is 20262.31. This is a positive number which indicates that the business is
economically feasible and acceptable.

1. Break Even Point:

 BEP (quantity)

¿
= Total ¿ Cost ( Price per kg−Variable Cost per kg) =22315.61/ (215-190.68)

= 917.65 kg

 BEP (monetary)

Total ¿ Cost ¿
= (1−Variable cost per kg / price per Kg) = 22315.61/(1-

(190.68/215))

= Rs. 197295.5

2. Margin of Safety
 MOS (quantity)
 = Total production (Kg) - BEP in Quantity = 4960-917.65

= 4332.35 kg

 MOS (monetary)

= Gross Income- BEP in Monetary = 1066400-197295.5

= Rs. 869104.5

3. Per cent Margin of safety:

 Per cent MOS (quantity)

BEP ∈quantity∗100
= = (917.65/4960)*100
total quantity

= 18.5%

 Per cent MOS (monetary)

¿ BEP ∈monetary∗100
= 197295.5/1066400
total revenue

= 18.5%

4. Financial Ratios:
T otal operating expense
 Operating Ratio = = 1001079.83/1066400 = 0.94
G ross income
Operating ratio is the ratio of operating expenses/ working capital to the
total income generated by the industry (AT & sons)
¿ expense
 Fixed Ratio = = 22315.61/1066400 = 0.02
gross income
Fixed ratio is the ratio of fixed expenses/cost to the total income of the
industry
total expense
 Gross Ratio = = 1023395.44/1066400 = 0.96
gross income
Gross ratio is the ratio of total expenses to the total income of the
industry.
Total of fixed and operating ratio should be equal to the gross ratio.
4.4 Marketing channel

Producer Consumer

Producer Retailer Consumer

AT and sons have 2 marketing channels for aonla candy. The first channel is
from producer to consumer directly. The second channel is from producer to retailer to
consumer.

Table 4.10 Channel wise product distribution

Sr. No Channel Aonla candy (in kg)

Channel 1 Producer to consumer 450
Channel 2 Producer to retailer to consumer 4,510
Total 4,960

The above table shows the distribution of aonla candy sold between the two
channels.

Table 4.11 Marketing cost

Sr No. Particular Channel 1 Channel 2

Cost Per Total Cost Per Total
kg cost kg Cost
Marketing Cost Of producer
1 Storage 1.44 650 0.94 4250
2 GST (5% of margin) 3.18 1432.58 0.18 827.65
subtotal 4.63 2082.58 1.13 5077.65
Marketing cost of retailer
1 Transportation Cost - - 2.77 12500
2 Loading charges - - 0.75 3400
3 Unloading Charges - - 0.75 3400
4 GST (5% of margin) - - 2.75 12402.5
 subtotal - - 7.03 31702.5
Total 4.63 2082.58 8.16 36780.15

The above table consists of the marketing cost of both the channels. Total
marketing cost for the channel 1 is Rs. 4.63 while that of the second channel is Rs, 8.16
per kg. GST was applied at 5% of the margin in both the channels as the GST for aonla
candy is 5%.

Table 4.12 Market Margin of aonla candy

Sr. No Particular Channel 1 Channel 2

Per kg Total Per kg Total
1 Producer selling Price 260 117000 210 947100
2 Retailer purchase price - - 210 947100
3 Retailer selling price - - 265 1195150
4 Marketing cost incurred by - - 7.03 31702.5
Retailer
5 Marketing margin of Retailer - - 47.97 216347.5

The above table consists the producer selling price, retailer purchase price and
market margin. When companies buy a product to act as a distributor or retailer, it must
sell the product at a higher price than that at which they purchased it. In such situations,
the marketing margin of a product is the difference between what a company pays for the
product and what it charges for the product. Market margin for the retailer is Rs. 47.97
per kg.

Table 4.13 Price spread

Sr. No. Particulars Channel 1 Channel 2

Amount % Amount %
1 Price Received by 255.87 98.41 208.87 78.82
producer
2 Total marketing cost 4.13 1.59 8.16 3.08
3 Total marketing margin - - 47.97 18.10
4 Price Paid by consumer 260.00 100 265 1152.17
 The above table consist of price spread for the aonla candy. Price spread is
defined as the difference between the price paid by consumers and the net price received
by the producer for an equivalent quantity. Price paid by consumer in first channel is Rs.
260 while in the second channel is Rs. 265.

Table 4.14 Marketing channel efficiency

Sr. No Particular Channel 1 Channel 2

1 Producer Price 255.87 208.87

2 Marketing Cost 4.13 8.16

3 Marketing Margin - 47.97

4 Marketing Efficiency 62.0 3.7

The above table consists of the marketing efficiency of both the channels.
Marketing efficiency is the degree of market performance. Marketing efficiency is the
ratio of market output to marketing input. Marketing efficiency for the first channel is
62% while that for the second channel is 3.7%.

Table 4.15 Marketing channel wise distribution

Sr. No Particular Channel 1 Channel 2 Total

1 Sales in Quantity 450 4510 4960
% 9.07 90.93 100
2 Sales in Rs 117000 947100 1064100
% 11.00 89.00 100

The above table contains the sales and Rs. Distribution between both the
channels. 450 kg of aonla candy is sold in first channel while 4510 kg is sold in the first
channel. By per cent 9.07 is sold in the first channel while 90.03 is sold in the first
channel.
4.5 SWOT Analysis
4.5.1 STRENGTHS
 Low pricing as compared to competitors: Pricing of AT and sons is lower as
compared to the traditional brands like Patanjali and Nutramla.
 Prompt costumer relations: The owner of the industry has maintained good
customer relations with all of their regular visiting customer.
 Staff is skilled: Staff at AT & sons are quite skilled at the activities they do.

4.5.2 Weaknesses:
 Company does not have an online presence: AT and sons does not have a
website yet, which restricts a lot of potential growth.
 Comparatively a new business: The company started in 2019 which makes it a
quite new industry
 Area of the company is quite small: AT and sons have a space crunch which
makes it difficult to carry out activities.

4.5.3. Opportunities
 Selling directly to the consumer: AT and sons can directly sell to the consumer
to earn higher margins.
 Expanding product line up: Currently the industry has quite less variety of
products, it can be increased to generate more sales.
 Launching sugar free (naturally sweetened) aonla candy for more health-
conscious costumers.

4.5.4. Threats:
 Increasing competition: Nowadays many FPOs are venturing into the business
of banana chips and aonla candy, generating higher competition
 Trend towards healthy eating habits: Many people are moving to more health-
conscious food items which diverts them from non-healthy food like banana
chips and aonla candy.

4.6 Problems and Solutions

4.6.1 Problems:
 No Digital presence.
 Increasing competition because of all the new FPOs launching.
4.6.2 Solutions:
 The company should launch a website.
 Attractive discounts to keep the costumer intact.

4.7 4 Ps of marketing:
Product:
 The selected product of AT & sons is Aonla candy.
 The way aonla candy differentiates from its competitors is that it is a fresh
product than others. It sold mostly in the same district where its produced hence,
storage and transportation time required is quite less.

Price:
 Aonla candy is priced at Rs. 325 per kg.
 Pricing method used is Cost plus pricing.
 The pricing is marginally less than its competitors such as Patanjali aonla candy
which costs around 350 per kg.

Brands Price (per kg)

AT & Sons 265
Patanjali 350
Nutraamla 360
Apollo pharmacy 340
Place:
 Aonla candy is sold to the retailers in pune district who then further sell it to the
consumers.
 Many super markets such as K-Mart, Ajinkya bazaar are also targeted by the
company to place their products in.
 The major demographic of the product is children and teenagers aged from 10 to
25.

Promotion:
 Mouth publicity helps a lot for a small-scale business-like AT and sons.
 The company relies heavily on pamphlets and business cards for the promotion of
their product.

4.8 Findings:
The total fixed cost for aonla candy is Rs. 22315.61

The total variable cost required for aonla candy is Rs 1001079.83

Total cost required for aonla candy is Rs 1023395.44

Gross income of AT & Sons for aonla candy is Rs 1066400

Benefit cost ratio of AT & Sons is Rs 1.12

The net present worth of AT & Sons is Rs 20262.31

The breakeven point in monetary term is Rs. 197295.5

 The margin of safety in monetary term is Rs. 869104.5

Precent margin of safety is 18.5%

The payback period is 2 years 1 month and 6 days

The payback period is 2.1 and BCR is 1.12. So, the project is economically feasible
and profitable.

4.9 Conclusion:
 India is the 3rd largest producer of aonla with 1,19,30,000 tonnes production in
the year 2017.
 BCR for AT & Sons is 1.12 while the payback period for the same is 2.1.
 A major strength of the company is that it has priced aonla candy much lower
than its competitors. While, a major weakness is that it does not have an online
presence.
 New FPOs capturing the market is a problem for the company, launching
products with heavy discount can be one of the solutions.
 V. BUSINESS PLAN:

Product: Aonla candy (jaggery)

5.1 Why this product?

 Sugar based candy is a relatively unhealthy product, because of presence of high
amount of sugar.
 Diabetic patients are usually completely prohibited from consuming sugar by
their doctors.
 Jaggery is a healthy alternative to sugar.
 Many health-conscious people would be quite attracted to this product.
 Rising trend of consuming jaggery instead of sugar would be an add on.

5.2 Benefits of jaggery over sugar

Jaggery Sugar
Helps to purify the blood Has No such properties

Works as a cleanser for the stomach Can’t Help

The lesser number of calories High in calories

Control blood pressure Increases blood pressure

Unrefined Refined
5.3 Porter’s five forces:

New
Entry

Substitut Competitive
Supplier
ion Rivalry

Buyer

Figure 5.1 Porter's five forces

1. New Entry:
A company's power is also affected by the force of new entrants into its market.
The less time and money it cost for a competitor to enter a company's market and be an
effective competitor, the more an established company's position could be significantly
weakened. Moderately high. Because many companies are trying to venture into this
relatively unexplored market. There is a high risk of many new entrants would try to
build their market here.

2. Buyer:
The ability that customers have to drive prices lower or their level of power is
one of the five forces. It is affected by how many buyers or customers a company has,
how significant each customer is, and how much it would cost a company to find new
customers or markets for its output. Low. Because there are not much brand alternatives
for this product. There is not a huge amount of aonla candy by jaggery making
companies as of now. Therefore, the bargaining power of the buyer is low.

3. Substitution:
The last of the five forces focuses on substitutes. Substitute goods or services that
can be used in place of a company's products or services pose a threat. Companies that
produce goods or services for which there are no close substitutes will have more power
to increase prices and lock in favourable terms. Threat of substitution is Low. Not much
competitors in this domain of aonla candy made from jaggery. As stated earlier the threat
or the risk of substitution for aonla candy made from jaggery is low because

4. Supplier:
The next factor in the five forces model addresses how easily suppliers can drive
up the cost of inputs. It is affected by the number of suppliers of key inputs of a good or
service, how unique these inputs are, and how much it would cost a company to switch
to another supplier. Low. High number of suppliers of aonla in the market.

5. Competitive Rivalry
The first of the five forces refers to the number of competitors and their ability to
undercut a company. The larger the number of competitors, along with the number of
equivalent products and services they offer, the lesser the power of a company. Low. Not
much competitors in this domain of aonla candy made from jaggery

5.4 SWOT Analysis

1. Strengths
 A healthy product to consume: Aonla candy made from jaggery is a healthy
product to consume as jaggery is healthier to consume.
 No additional infrastructure required to start production: The strength of this
business plan is that it won’t need any extra build up of infrastructure to start the
production and sales.

2. Weaknesses:
 High price as compared to traditional aonla candy: Aonla candy from jaggery
is priced higher than the regular aonla candy as the production cost is higher.
 A compromise in taste: Some people might not like the taste of aonla candy
made from jaggery.
 3. Opportunities:
 Trend towards healthy eating habits: Current trend of healthy eating habits can
drive a huge customer base to this product.
 Increasing number of lifestyle diseases: Many lifestyle-based diseases are
increasing nowadays which would increase the demand for a healthy product like
this.

4. Threats:
 High number of alternatives to sweets: Aonla candy as a sweet has many
alternatives for customer to choose from

5.5 STP Model:

Segmentation

Targetting

Positioning

Figure 5.2 STP model

Segmentation: Aonla candy made from jaggery would be focused on people aged above
40 (as many of them are suggested to not consume sugar.
Targeting: Advertising can be done through newspapers, pamphlets etc to target the
above costumers.

Positioning: The product would be positioned into the minds of the people as a healthy
alternative for traditional aonla candy.

5.6 Business canvas model:

Key Partners Key Activities Value Customer Customer
Propositions Relationships Segments

Aonla is Production of Delivering a Good relations Mostly 40 plus

supplied by jaggery based healthy with local people (agewise)
farmers in aonla candy alternative to retailers
neighbouring and supplying aonla candy
villages.
Jaggery: Sai
Jaggery
Key Resources Channels
products,
More Producer to
Baramati
manpower Retailer to
would be consumer
required
because of
increased
production.

Cost Structure Revenue Streams

A slight increase in variable cost as Selling Jaggery based aonla candy
compared to traditional candy
Key partners: Key partners are the external companies or suppliers that will help you
carry out your key activities. These partnerships are forged in oder to reduce risks and
acquire resources. Aonla is supplied by farmers in neighbouring villages. Jaggery: Sai
Jaggery products, Baramati.

Key Activities: What are the activities/ tasks that need to be completed to fulfill your
business purpose? In this section, you should list down all the key activities you need to
do to make your business model work. 

Value propositions: This is the building block that is at the heart of the business model
canvas. And it represents your unique solution (product or service) for a problem faced
by a customer segment, or that creates value for the customer segment. Delivering a
healthy alternative to aonla candy.

Customer relationships: In this section, you need to establish the type of relationship
you will have with each of your customer segments or how you will interact with them
throughout their journey with your company. Good relations with local retailers.

Customer Segments: Segmenting your customers based on similarities such as

geographical area, gender, age, behaviors, interests, etc. gives you the opportunity to
better serve their needs, specifically by customizing the solution you are providing them.
Mostly 40 plus people (agewise).

Key Resources: His is where you list down which key resources or the main inputs you
need to carry out your key activities in order to create your value proposition. More
manpower would be required because of increased production.

Channels: This block is to describe how your company will communicate with and
reach out to your customers. Channels are the touchpoints that let your customers
connect with your company. Producer to consumer and Producer to Retailer to consumer.

Cost Structure: In this block, you identify all the costs associated with operating your
business model. A slight increase in variable cost as compared to traditional candy.

Revenue Streams: Revenues streams are the sources from which a company generates
money by selling their product or service to the customers. And in this block, you should
describe how you will earn revenue from your value propositions. Selling Jaggery based
aonla candy.
5.7 Economics of the business plan:
Table 5.1 Product per cent share

Sr no Name of plant Production in Kg % share of product

1 Banana Chips 6,500 49.06
2 Amla Candy (Jaggery) 1,500 11.32
3 Aonla Candy 5,250 39.62
Total 13,250 100.00

The above table shows the per cent share for AT and sons. This is according to
new business plan. Aonla candy (jaggery) has a per cent share of 11.32%.

Table 5.2 Initial Investment

Sr Particulars Un Quan Rate (in Amo % Share Amount for

No it tity Rs) unt Aamla Candy
A Deposit 1500 7.51
0
B Machinery
1 Slicing No 1 65000 6500 32.56 7358.49
Machine s. 0
2 Packing No 2 1300 2600 1.30 294.34
Machine s.
3 Weighing No 2 3654 7300 3.66 826.42
balance s.
4 Sun dryer No 1 35000 3500 17.53 3962.26
s. 0
5 Steamer No 1 2450 2450 1.23 277.36
s
6 Refractometer No 1 14450 1445 7.24 1635.85
s 0
C Other
1 Cauldron No 2 3500 7000 3.51 792.45
s.
 2 Baking Tray No 5 425 2125 1.06
s
3 Knife No 4 150 600 0.30 67.92
s.
4 Peeler No 2 60 120 0.06 13.58
s.
5 Mesh No 2 1000 2000 1.00 226.42
Skimmer s.
6 Rack No 2 5000 1000 5.01 1132.08
s. 0
7 Tub No 4 450 1800 0.90 203.77
s.
8 Table 1 3500 3500 1.75 396.23
9 Chair No 3 750 2250 1.13 254.72
s
10 Shegadi 2 3200 6400 3.21 724.53
11 Initial 7250 3.63 820.75
maintenance
12 License fee No 1 9,799 9799 4.91 1109.32
s
13 Miscellaneous No 1 5,000 5000 2.50 566.04
Assets s
  Total       1996 100.00 22601.21
44
2260.12
Total 1996 24861.33
44

The above table consists of the initial investment of AT and sons. Total initial
investment is Rs. 199644 while the per cent share for the selected product, which is aonla
candy (jaggery) is Rs. 22601.2.
Table 5.3 Depreciation

Sr Particula Am Junk Purch Expe Remai Depr Depreiciation for

N rs oun valu ase cted ning eciati Aonla Candy
o t e year life life on (2021)
A Deposit 150 1500 2019
00
B Machiner
y
1 Slicing 650 6500 2019 15 11 5318. 602.06
Machine 00 18
2 Packing 260 260 2019 15 11 212.7 24.08
Machine 0 3
3 Weighing 730 730 2019 15 11 597.2 67.62
balance 0 7
4 Sun dryer 350 3500 2019 12 8 3937. 445.75
00 50
5 Steamer 245 245 2019 10 6 367.5 41.60
0 0
6 Refracto 144 1445 2019 10 6 2167. 245.38
meter 50 50
C Other 0.00
1 Cauldron 700 700 2019 10 6 1050. 118.87
0 00
2 Baking 212 212. 2019 10 6 318.7 36.08
Tray 5 5 5
3 Knife 600 60 2019 5 1 540.0 61.13
0
4 Peeler 120 12 2019 5 1 108.0 12.23
0
5 Mesh 200 200 2019 5 1 1800. 203.77
Skimmer 0 00
6 Rack 100 1000 2019 8 4 2250. 254.72
 00 00
7 Tub 180 180 2019 8 4 405.0 45.85
0 0
8 Table 350 350 2019 8 4 787.5 89.15
0 0
9 Chair 225 225 2019 5 4 506.2 57.31
0 5
10 Shegadi 640 640 2019 8 4 1440. 163.02
0 00
11 Initial 725 725 2019 10 6 1087. 123.11
Mantaine 0 50
nce
12 License 979 979. 2019 9799. 1109.32
fee 9 9 00
13 Miscellan 500 500 2019 10 6 750.0 84.91
eous 0 0
Assets
Total 199 3785.96
644
Interest 2260.12
(10%)
Total 199 33442 6046.08
644 .68

The above table consists the depreciation on initial investment. The method used
to calculate depreciation is straight line method. Total fixed out for aonla candy(jaggery)
is Rs. 6046.08. Fixed cost per kg for aonla candy is Rs. 4.5.

Table 5.4 Working capital

Sr. Particulars 2022-

No 23
Unit Qty Rate Amou Per cent share on Aonla
nt candy
 A Raw Material
1 Aamla Kg 1,50 100 15000 150000.00
0 0
2 Jaggery powder Kg 105 55 57750 57750.00
price 0
3 Ginger powder kg 22.5 235 5287.5 5287.50
4 Rock salt kg 22.5 110 2475 2475.00
5 Black salt kg 22.5 290 6525 6525.00
Rent Mont 12 12000 14400 16301.89
hs 0
B Labour charges Mont 12 30000 36000 40754.72
h 0
C Electricity Mont 12 1,450 17400 1969.81
Charges hs
F Packaging & Packing 17,50 17,500 1981.13
Charges 0
G Transportation 21,00 21,000 2377.36
Charges 0
H Pamphlet and 14,00 14,000 1584.91
banner 0
Other 8,500 8,500 962.26
Subtotal 80443 287969.58
7.5
Interest @12% 96532. 34556.35
5
  Total       90097 322525.92
0
Per Kg Variable 215.02
cost

The above table consists of the working capital for aonla candy (jaggery). Total
working capital is Rs. 322525.92. Fixed cost per kg for aonla candy (jaggery) is is Rs.
215.02
Table 5.5 Total cost, total income and net income

Year Fixed Working Total Sales price Total Net

cost capital cost quantity per kg income income
2021 24861. 0 24861. 0 0 0 -
33 33 24861.3
3
2022- 6046.0 322525.92 328572 1500.00 245 367500 38927.9
23 8 .01 9
2023- 6650.6 354778.52 361429 1,650 250 412500 51070.7
24 9 .21 9
2024- 7315.7 390256.37 397572 1,815 255 462825 65252.8
25 6 .13 7
2025- 8047.3 429282.01 437329 1,997 260 519090 81760.6
26 4 .34 6
2026- 8852.0 472210.21 481062 2,196 265 581979.7 100917.
27 7 .28 5 47
Total             337929.
78
Average 67585.9
6

The above table consists of the fixed cost, variable cost, total cost, gross income
and net income of the AT and Sons for aonla candy (jaggery).

Total Investment
Payback Period = =2.95 .
Net Income per year

Payback period of AT & Sons is 2.95 which means it would take 2 years 11
month to recover the initial investment.

Table 5.6 per kg cost

Sr no Particulars 2021-22 per kg

1 Yield of Candy/year 1,500
2 Fixed cost 6046.08 4.03
 3 Variable cost 322525.92 215.02
4 Total cost 328572.01 219.05
5 Production cost (Rs/kg) 219.05  

Table 5.7 BCR

Sr no Year Benefit Cost D.F @15% PWB PWC

1 2022-23 367500 328572 0.87 319565.22 285715
2 2023-24 412500 361429.2 0.76 311909.26 273292
3 2024-25 462825 397572.1 0.66 304314.95 261410
4 2025-26 499125 437329.3 0.66 328182.79 287551
5 2026-27 549037.5 481062.3 0.66 361001.07 316306
TOTAL       1624973.3 1424274.73

  BCR     1.14    

Present Worth of benefits

BCR = = 1.14
Present worth of cost

BCR of AT and Sons is 1.14. This depicts that the company earns Rs. 0.14 when
it spends Rs. 1.

Table 5.8 NPW

Sr no Year Benefit Cost Net income DF @ 15% NPW

1 2021 0.00 24861.33 -24861.33 0.87 -21618.55
2 2022-23 367500.00 328572.01 38927.99 0.87 33850.43
3 2023-24 412500.00 361429.21 51070.79 0.76 38616.85
4 2024-25 453750.00 397572.13 56177.87 0.66 36937.86
5 2025-26 499125.00 437329.34 61795.66 0.57 35331.87
6 2026-27 549037.50 481062.28 67975.22 0.50 33795.70
  TOTAL         156914.16
 The above table consists of Net present worth of AT and sons for aonla candy
(jaggery). NPW is 156914.16. This is a positive number which indicates that the business
is economically feasible and acceptable.

Break Even Point:

BEP (quantity)

¿
= Total ¿ Cost ( Price per kg−Variable Cost per kg)

= 221.82 kg

BEP (monetary)

¿
= Total ¿ Cost (1−Variable cost per kg / price per Kg)

= Rs. 54345.3

Margin of Safety
MOS (quantity)

= Total production (Kg) - BEP in Quantity

= 1278.18 kg

MOS (monetary)

= Gross Income- BEP in Monetary

= Rs. 313154.7

Per cent Margin of safety:

Per cent MOS (quantity)

BEP ∈quantity∗100
=
total quantity

= 14.79%

Per cent MOS (monetory)

BEP ∈monetary∗100
=
total revenue

= 14.79%
Financial Ratios:
T otal operating expense
Operating Ratio = = 0.86
G ross income

Operating ratio is the ratio of operating expenses/ working capital to the total
income generated by the industry (AT & sons)

¿ expense
Fixed Ratio = = 0.01
gross income

Fixed ratio is the ratio of fixed expenses/cost to the total income of the industry.

total expense
Gross Ratio = = 0.88
gross income

Gross ratio is the ratio of total expenses to the total income of the industry.

Total of fixed and operating ratio should be equal to the gross ratio.

5.8 Marketing channels:

Producer Consumer

Producer Retailer Consumer

AT and sons have 2 marketing channels for aonla candy (jaggery). The first
channel is from producer to consumer directly. The second channel is from producer to
retailer to consumer.

Table 5.9 Channel wise product distribution

Sr. No Channel Aonla candy (jaggery) (in

kg)
Channel 1 Producer to consumer 250
Channel 2 Producer to retailer to consumer 1250
Total 1500
 The above table shows the distribution of aonla candy (jaggery) sold between the
two channels.

Table 5.10 Marketing cost

Sr No. Particular Channel 1 Channel 2

Cost Total Cost Per Total
Per kg cost kg Cost
Marketing Cost Of producer
1 Storage 1.40 350 3.40 4250
2 GST (5% of margin) 3.18 795.88 1.68 2104.39
subtotal 4.58 1145.88 5.08 6354.39
Marketing cost of retailer
1 Transportation Cost - - 6.00 7500
2 Loading charges - - 1.76 2200
3 Unloading Charges - - 1.76 2200
4 GST (5% of margin) - - 2.75 3437.5
subtotal - - 12.27 15337.5
Total 4.58 17.35 21691.89

The above table consists of the marketing cost of both the channels. Total
marketing cost for the channel 1 is Rs. 4.58 while that of the second channel is Rs, 17.35
per kg. GST was applied at 5% of the margin in both the channels as the GST for aonla
candy is 5%.

Table 5.11 Market Margin of aonla candy

Sr.No Particular Channel 1 Channel 2

Cost Total Cost Per Total
Per kg cost kg Cost
1 Producer selling Price 270 67500 240 300000
2 Retailer purchase price - - 240 300000
3 Retailer selling price - - 295 368750
4 Marketing cost incurred by - - 12.27 15337.5
Retailer
 5 Marketing margin of Retailer - - 42.73 53412.5

The above table consists the producer selling price, retailer purchase price and
market margin. When companies buy a product to act as a distributor or retailer, it must
sell the product at a higher price than that at which they purchased it. In such situations,
the marketing margin of a product is the difference between what a company pays for the
product and what it charges for the product. Market margin for the retailer is Rs. 42.73
per kg.

Table 5.12 Price spread

Sr. No. Particulars Channel 1 Channel 2

Amount % Amount %
1 Price Received by producer 265.42 98.30 234.92 79.63
2 Total marketing cost 4.58 1.70 17.35 5.88
3 total marketing margin - - 42.73 14.48
4 Price Paid by consumer 270.00 100 295 100.00

The above table consist of price spread for the aonla candy. Price spread is
defined as the difference between the price paid by consumers and the net price received
by the producer for an equivalent quantity. Price paid by consumer in first channel is Rs.
270 while in the second channel is Rs. 295

Table 5.13 Marketing channel efficiency

Sr. No Particular Channel 1 Channel 2

1 Producer Price 265.42 234.92
2 Marketing Cost 4.58 17.35
3 Marketing Margin 0.00 42.73
4 Marketing Efficiency 57.9 3.9

The above table consists of the marketing efficiency of both the channels.
Marketing efficiency is the degree of market performance. Marketing efficiency is the
ratio of market output to marketing input. Marketing efficiency for the first channel is
57.9% while that for the second channel is 3.9%.

Table 5.14 Marketing channel wise distribution

Sr . No Particular Channel 1 Channel 2 Total

1 Sales in Quantity 250 1250 1500
% 16.67 83.33 100
2 Sales in Rs 67500 300000 367500
% 18.37 81.63 100

The above table contains the sales and Rs. Distribution between both the
channels. 250 kg of aonla candy (jaggery) is sold in first channel while 1250 kg is sold in
the second channel. By per cent 16.67 is sold in the first channel while 83.33 is sold in
the first channel.
 VI. ENTREPRENEURSHIP DEVELOPMENT
PROGRAM (EDP)

6.1 What is entrepreneurship Development Program?

Entrepreneurship Development Program is the EDP is a programme meant to
develop entrepreneurial abilities among the people. Entrepreneurial Development
Programme (EDP) may be defined as a programme designed to help a person in
strengthening his entrepreneurial motives and in acquiring skills and capabilities
necessary for playing his entrepreneurial role effectively and efficiently.

Objectives of EDP:
6.2 The major objectives of the Entrepreneurship Development
Programme (EDPs) are to:
a. Develop and strengthen the entrepreneurial quality, i.e. motivation or need for

achievement.

b. Analyse environmental set up relating to small industry and small business.

c. Select the product.

d. Formulate proposal for the product.

e. Understand the process and procedure involved in setting up a small enterprise.

f. Know the sources of help and support available for starting a small scale industry.

g. Acquire the necessary managerial skills required to run a small-scale industry.

h. Know the pros and cons in becoming an entrepreneur.

i. Appreciate the needed entrepreneurial discipline.

j. Besides, some of the other important objectives of the EDPs are to:

k. Let the entrepreneur himself / herself set or reset objectives for his / her enterprise and

strive for their realization.

l. Prepare him / her to accept the uncertainty in running a business.

m. Enable him / her to take decisions.

n. Enable to communicate clearly and effectively.

o. Develop a broad vision about the business.

p. Make him subscribe to the industrial democracy.

q. Develop passion for integrity and honesty.

r. Make him learn compliance with law.

6.3 Program Structure:

EDP Program was arranged by Student of agriculture business Management ( 4 th

year ) on 1st of April 2022 .Entry fee for EDP Program was 40 Rs. Per Student.

Following table shows the program Structure of EDP Program held on 1st April 2022
Table 6.1 Schedule of EDP program

Time Activity Responsible person

12:30-1:00 PM Refreshment Guest Bodke Sir- Rohan, Digvijay
Bhohite Sir- Pankaj, Abhishekh
Yogesh Sir- Suraj
12:45-1:00 PM Seating Arrangement Kalyani, Namrata, Ajinkaya
,Mangesh, Aniket, Akshay G.
Stage Arrangement Onkar Patil, Raviraj , Prasad , Divya ,Sanjali ,
Omkar g& Gaurav
1:00-1:15 PM Welcome Of Guest Sanjali & Akshay Raut
1:15-1:20 PM Intro Bodke Sir Sanjali & Akshay Raut
1:20-2:45 PM Interaction - Bodke Sir, Rohan , Digvijay & Stage Committee
Q&A
2:45-2:50 PM Intro Bhoite Sir Swarup
2:50- 3:40 PM Interaction- Bhoite Sir, Pankaj, Abhishekh & Stage Committee
Q&A
3:40-3:45 PM Intro Yogesh Sir Aniket & Mangesh
3:45- 4:45 PM Interaction, Q&A Suraj ,& stage Committee
4:45-4:55 PM Vote of Thanks Swarup
4:55 PM- Refreshment Guest Bodke Sir- Rohan, Digvijay Bhohite Sir-
Pankaj, Abhishekh Yogesh Sir- Suraj
Onwards
 Time of Program was 12.00pm to 5.00pm ,we invited 3 guest Lecturers for the
scheduled EDP Program which was Organized at AIC_ADT Auditorium .this event
aimed at installing entrepreneur skills in student . we organized lectures of 3 Speakers
for EDP Program holding expertise in 3 Different Topics i.e .

1.Organic Farming (Mr. Dnyaneshwar Bodke),

2.Startups in Dairy and Animal Husbandry (Dr.Dhanjay Bhoite) ,

3.Banking &Finance (Mr.Yogesh Patil).

The First lecture is on Organic farming was conducted by Mr.Dnyaneshwar

Bodke , he is CEO & Founder of Abhinav Farming Group .This speech includes
information about organic Farming . First they explain what is organic Farming ? and
opportunities in this field ,and Business oriented Farming .we got to know a lot about
business oriented Farming , opportunities in farming business while explaining this they
said “more than export First Focus on Domestic market ,if we did our product
marketing and management in proper way we can run a successful farming business” .

There is small interaction section with Speaker and Students . this help them to student
clear their Doubts. they explained every aspect of organic farming in detail manner .this
was a very informative Speech of our EDP Program.

The second lecture is on Startups in Dairy and Animal Husbandry was given by
Dr. Dhanjay Bhoite , He is CEO of Centre of Excellence , AH and Dairy Science ,
Baramati. There is small interaction section with Speaker and Students . this help them
to student clear their Doubts. They explained us about different opportunities in Dairy
and animal husbandry sector in business point of view. There are different schemes
related to Dairy animals and Dairy Sector too, we got to know about this all information.

The third lecture was conducted by Mr. Yogesh Patil . He is CEO of Urban-
green Farmers on Banking and Finance; this includes points like

Opportunities in Agri Business

Different sectors of Agri business

Types of bank loan

Process of bank loans for Agriculture and Agri Business

How to select bank for your loan?

Overall process of Bank loan

Finance management for your started business

There is small interaction section with Speaker and Students. this helps them to student
clear their Doubts. This are very important points while starting any business, running a
business efficiently . this was a very formative lecture given by Mr.Yogesh Patil.

6.4 Revenue generation from program :

Pass price :40/head

Table 6.2 Revenue generation

Revenue Amount
Tickets 10280
Class contribution 5600
total 15880
The table above shows revenue generated for program , in this from tickets
selling Rs.10,280 and self-contribution was Rs.5600 .

Expenditure:

Table 6.3 Expenditure of EDP

Sr/No Name Amount

1 Auditorium 7670
2 Mess 600
3 Canteen 320
4 Xerox 240
5 Plants 240
6 Water Bottle 280
7 Mr. Bodke Sir 3000
  Total 12350

The table above shows expenditure of the program in which the total expenditure
of Rs.12350.
Table 6.4 Summary

Particular Amount
Revenue 15880
Expenditure 12350
Remaining 3530

The table above shows total summary of expenditure and revenue

6.5 Photos:

Pass for the event

 Pamphlet

Group Photo

6.6 Experience Gained: