SUBJECT:

Entrepreneurship & Innovation (EI)

TITLE:

Business Plan for Mushroom Production

Submitted by: Group- 5

Prathamesh Awade- 03

K Lekhasree Royal-14

Amey Sonawane-35

Ankit varekar-42

Meghana Yalamarthy-

45 Submitted To:

Dr. K Narendran

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Table of Contents
EXECUTIVE SUMMARY......................................................................................................3
1 INTRODUCTION.................................................................................................................5
Mushroom.............................................................................................................................5
Medicinal values:..................................................................................................................5
Provides energy.....................................................................................................................5
Nutritional values:................................................................................................................5
2 COMPANY SUMMARY......................................................................................................9
Business Name......................................................................................................................9
Slogan.....................................................................................................................................9
Company Logo:....................................................................................................................9
Goals:...................................................................................................................................10
Objective..............................................................................................................................10
Vision...................................................................................................................................10
Mission.................................................................................................................................10
3 PRODUCT & SERVICE ANALYSIS...............................................................................11
4 MARKET ANALYSIS........................................................................................................14
Industry Analysis:..............................................................................................................14
Competitors:.......................................................................................................................14
Customers:..........................................................................................................................15
Market Fit...........................................................................................................................15
5 STRATEGIC PLAN...........................................................................................................17
Marketing:...........................................................................................................................17
Pricing:................................................................................................................................18
Distribution.........................................................................................................................19
Sales:....................................................................................................................................19
Forecast sales:.....................................................................................................................19
6 MANAGEMENT PROFILE..............................................................................................20
7 FINANCIAL ANALYSES..................................................................................................22
Cost of Cultivation..............................................................................................................22
Balance sheet:......................................................................................................................24
Cash Flow Analysis.............................................................................................................25

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List of Figures:
Figure 1: Company Logo.........................................................................................................9
Figure 2: Process of mushroom preparation.......................................................................11
Figure 3: Different types of Oyster mushrooms..................................................................12
Figure 4: Global Share of mushroom industry...................................................................14
Figure 5: Business model of Mushroom

Figure 6: Direct marketing of mushrooms..........................................................................17

Figure 7: Social media marketing.........................................................................................18
Figure 8: Advertisement of mushroom................................................................................18
Figure 9: Cost of cultivation of mushroom..........................................................................22
Figure 10: Cost of cultivation of mushroom........................................................................23

List of Tables:
Table 1: Balance sheet for Mushroom.................................................................................24
Table 2: Cash flow analysis for Mushroom.........................................................................25

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 EXECUTIVE SUMMARY
A Mushroom is the Fleshy, Spore bearing fruiting body of a Fungus, typically Produced
above Ground, on Soil, or on its Food source. Mushrooms are rich in Protein, Vitamins &
Minerals, hence popularly known as “VEGETARIANS MEAT”. Medicinal values are
Reduces Cholesterol, Cures cancer, Cures skin problems etc., Nutritionally it contains both
vitamin B, vitamin D, Antioxidant Selenium. Steps include Collection of straw, cleaning
room, bag filling, pinning, watering, harvesting. Company Name is House of Mushrooms
with slogan fit to eat. Our company want to become one of the leading suppliers of
Mushroom production in India by the coming Next years. Goal is to become one of the top
producing company and objective is to reduce the farm wastage. Unique selling point of our
product is as it is grown under the strict environmental conditions. It satisfies the need with
the market as it has been grown in the competitive pricing. We are using wheat straw as our
main growing medium. This together with supplements is the raw materials for our
production. Currently we are in start-up stage where we are searching for Accumulation of
Capital and Seeing Market, Promotional strategies. According to data released by the
National Horticulture Board, in 2021-22, Bihar produced more than 28,000 tonnes of
mushrooms, which is 10.82 per cent of the total mushrooms produced in the country. By
doing Market segmentation we can enter in to the market easily. Marketing is the action or
business of promoting and selling products or services, including market research and
advertising. We are doing Direct Marketing, Social media Marketing, Advertisements. We
are selling to the Super markets, Local health stores, Restaurants, Small Grocery stores,
Direct to local buyers. Mentoring will be taken from advisory boards who will guide in loop
holes other employees hired will look into the other section like Lab-in charge, accountant,
packaging, distributors lead and labours. Financial analysis is the process of evaluating
businesses, projects, budgets and other finance-related entities to determine their performance
and suitability. A balance sheet is the “Snapshot” of a company’s financial position at a given
moment and reports the amount of a company’s assets, liabilities. The cost of cultivation
includes factor costs up to the stage of gathering the harvest. Cash flow analysis refers to the
evaluation of inflows and outflows of cash in an organisation obtained from financing,
operating and investing activities. In other words, we can say that it determines the ways in
which cash is earned by the company.

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 1 INTRODUCTION
Mushroom: A Mushroom is the Fleshy, Spore bearing fruiting body of a Fungus, typically
Produced above Ground, on Soil, or on its Food source.

Mushrooms are rich in Protein, Vitamins & Minerals, hence popularly known as
“VEGETARIANS MEAT”.

Taxonomy of Mushroom:

• Kingdom: Fungi

• Division: Basidiomycota

• Class: Agaricomycetes

• Order: Agaricales

• Family: Pleurotaceae

• Genus: Pleurotus

Medicinal values:
 Reduces cholesterol
 Cures cancer
 Cures heart problems
 Enhances immunity

Provides energy
 Prevents tooth decay
 Cures anaemia
 Maintains brain health
 Maintains blood sugar level

Nutritional values:
Mushrooms are rich in proteins, minerals& vitamins.

 In vitamins mostly present vitamins are vitamin B & vitamin D.

 Vitamin b: helps in maintaining good health and prevent infections.
 Vitamin d: used to treat and prevent bone disorders.

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  Selenium: a powerful antioxidant which helps to support immune system and prevent
damage to cells and tissues.
Every 100gm of fresh mushroom contains

 Protein - 1.5 – 6.7 g

 Fat - 0.3 – 0.4 gm
 Carbohydrate - 1.5 – 3.0 gm
 Energy - 33kcal
Edible:

Those which are fit to eat are known as edible.

Examples:

 Oyster Mushrooms
 Shiitake Mushrooms
 Morel Mushrooms
 Lions Mane mushrooms
 Button Mushrooms
 Portobello Mushrooms
 Enoki Mushrooms
Non-Edible:

Those which are unfit to eat are known as non-edible.

Examples:

 Deadly Dapperling
 Destroying Angles
 Autumn Skull cap
 Web Caps
 Death Cap
 Concybe Filaria
 Podostroma Cornudamae
1. Collection of straw: Wheat straw is collected in gunny bags.

2. Cleaning of room: Cleaning of room by brooming followed by spraying of formalin

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added water in order to avoid contamination.

3. Methods of sterilization:

1. chemical sterilization
2. hot water treatment
3. steam pasteurization
4. sterile technique
Hot water sterilization method:

4-5cm chopped wheat straw is added in to water (after it get into heated) & boiled at 65-72 c
for 1 hour. This Method is done in order to avoid contamination and destroy a Bacteria, Fungi
that present in Dormant Stage in Wheat straw.

Removal of wheat straw (that is boiled for about an hour) in to crates by using bucket.

4. Bag filling:

First, we should make sure that wheat straw moisture should be 50-60%.

2. The wheat straw should not be hotter during bag filling.

3. We should clean our hands in Formalin added water in order to avoid Contamination.

Steps to be followed during bag filling:

1.Polythene bag that is cleaned in formalin added water is to be taken.

2.Tie it with a rubber band on its lower side.

3. Then turn the bag to it opposite side.

4. Add wheat straw about 3-4 m layer followed by addition of spawn.

5. One Bag should consist of 4 layers of Wheat straw and 3 layers of

Spawn. 6.Gram Flour is added on above of Spawn.

7. In one Bag 100-150 gm of Spawn is added.

8. More addition of spawn makes more growth of Mycelium.

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Pinning:

Pinning is done for Aeration and Drainage.

Pinning increases the potential Yield and quality of a crop.

Opening of bags after 15 days of Bag Filling.

Watering is done after opening the

bags. 3-4 waterings are required for a

day.

As normally mushroom contains 90% of water so if watering is not done then the mycelium
will get dry and mushrooms are developed.

Observations are taken before watering and after Watering to Beds.

We have to maintain

 Temperature:20-30c
 Humidity :60-90%

Harvesting:

Harvesting is done after full growth of mushrooms. Harvesting should be done by twisting or
cutting with a blade /knife.

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 2 COMPANY SUMMARY
Business Name: House of Mushrooms

Slogan: Fit to eat

Company Logo:

Figure 0.1: Company Logo

Owners Name: Prathamesh Awade, K Lekhasree Royal, Amey Sonawane, Ankit varekar,

Meghana Yalamarthy.

Key Employees: Farm Manager, Accountant, Marketing Manager, Sales Manager, Labours.

History Of Business:

Our company is aiming to be the leading supplier of mushroom in terms of quality and
affordability, by boosting production of mushroom and turning every agricultural and
industrial waste into business opportunities

Our company also wants to culture other kinds of mushrooms, aside from oyster mushroom,
and make finish products among them, and to help not only that community but to make the
whole country to become a large supplier of increasing demand of mushrooms.

There are many other Mushroom companies in India but we are focusing mainly on the
Quality and Hygiene of the Mushrooms.

We kept the Name as House of Mushrooms because we are focusing on production various
colours of Oyster Mushroom and Milky mushroom along with that.

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Goals:
 To become one of the Top producing Company in India.
 To expand our production into global market by next 2 years.
 To add Nutritional value in Mushroom production.

Objective:
 To reduce the farm wastage.
 Utilizing the farm waste as raw material for production of Mushrooms.

Vision:
 Creation of sustainable value chain to revolutionize the Mushroom Production.

Mission
 Providing fresh, safe, high quality of Mushrooms.
 Supporting community through income generation alternatives.
 Eco-friendly methods and generation of sustainable pipeline.

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 3 PRODUCT & SERVICE ANALYSIS
 Unique selling point of our product is as it is grown under the strict environmental
conditions.
 It satisfies the need with the market as it has been grown in the competitive pricing
 We are using wheat straw as our main growing medium. This together with
supplements is the raw materials for our production. That material is pasteurized and
filled into plastic bags together with spawn.
 The spawn will invade all of the raw materials and after about 4 to 6 weeks will
convert the growing medium into mushrooms.
 A total of 3 harvests are the norm, before the growing medium is exhausted and used
up. That total process takes about 3 to 4 months.

Figure 2: Process of mushroom preparation

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 Grown indoors on a year-round cycle mushroom always pack a nutritious punch into your
favourite meals. Before making their way to your plate. Mushrooms goes through a
growing process in a highly controlled environment unlike that of any other produce.
 Get a behind the scene look into the journey of the incredible fungi.
Raw materials:

The substrate provides a nutritional balance of organic material to serve as a growth medium
for mushrooms.

Spawning:

Mushroom spawn purchased from the commercial labs is mixed with the substrate.

Bedding:

The mushroom spawn mixture is transferred to a several hundred beds of trays.

Casing and pinning:

Casing made up of peat moss is spread over the mushroom bed serving as a reservoir to hold
in moisture. During the pinning stage pins of mushrooms push up through the the casing.

Harvesting:

Mushrooms are harvested by hand between 16-35 days cycle.

Figure 3: Different types of Oyster mushrooms.

Benefits: My company products are unique to other competitor products because of the
Quality and hygiene aspects we maintain in comparing to the other companies. We are more
focusing on the Quality aspect in the Mushroom which increase the perishability of the
Mushroom.

Costs: Costs are mentioned in the financial analysis in the cost of production

where Fixed costs = Cost A = 24,770/-

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Variable cost = Cost B = 6175

Total Expenditure = 11,624

Net profit = 9225

Location: Currently we are thinking to expand domestically. In the Initial stage we are
focusing on Andhra Pradesh, Maharashtra to expand our business further domestically and
further worldwide.

As the raw material used for production of mushroom is procured from the farmers our cost
of production is somewhat reduced in this aspect.

Technology: Technology include in the sterilization methods, Observation for noting the
temperature, Moisture content of the storage room is needed.

Cold storage facilities are very important to our business as the required temperature is
needed for the business growth.

Future: There will be a good future for our business as we are focusing on reducing the
wastage and thriving to increase our sales with customers.

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 4 MARKET ANALYSIS
Industry Analysis:
 The activity of gathering information about conditions that affect a marketplace.
 We are in starting stage of Mushroom Production Industry in our own platform.
 Currently we are in start-up stage where we are searching for Accumulation of Capital
and Seeing Market, Promotional strategies.
Global Mushroom Market

Figure 4: Global Share of mushroom industry.

 The global Oyster Mushroom market size is projected to reach multi million by 2027,
in comparison to 2022, with unexpected CAGR during the forecast period.
 Bihar has achieved this feat by overtaking Odisha. Earlier, Odisha was ranked first in
mushroom production.
 According to data released by the National Horticulture Board, in 2021-22, Bihar
produced more than 28,000 tonnes of mushrooms, which is 10.82 per cent of the total
mushrooms produced in the country.
 While Bihar had produced 23,000 tonnes of mushrooms last year, the state was
ranked 13th in terms of mushroom production three years ago.
 According to horticulture board data, Maharashtra is second to Bihar in mushroom
production, which accounts for 9.89 per cent of the total production. Odisha is at the
third position with 9.66 per cent share.

Competitors:
1. Biobritte
2. Saalvi agro mushrooms

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 3. Shri Krishna mushrooms
4. Shril International India
5. Khyati Mushrooms & agro products
6. Ujjwal Mushroom & Enterprise
7. Naikare Biz Private Limited
8. Smn Fresh Agro
9. Super Mushroom Hub Private Limited
10. M.L. Mushroom Exports

Customers:
1. Health-conscious people
2. College students
3. Restaurant family visitors
4. B.P, Sugar, Heart Patients

Market Fit:
By doing Market segmentation we can enter in to the market easily.

Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the India
mushroom market report, along with forecasts at the country and regional level from 2022-
2027. Our report has categorized the market based on mushroom type, form,
distribution channel and end use.

Breakup by Mushroom Type:

 Button Mushroom
 Shiitake Mushroom
 Oyster Mushroom
 Other

Breakup by Form:

 Fresh Mushroom
 Canned Mushroom
 Dried Mushroom
 Other

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Breakup by Distribution Channel:

 Supermarkets and Hypermarkets

 Grocery Stores
 Online Stores
 Others

Business Model Canvas:

Figure 51 Business Model

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 5 STRATEGIC PLAN
Marketing:
Marketing is the action or business of promoting and selling products or services, including
market research and advertising.

We are doing

 Direct Marketing
 Social media Marketing
 Advertisements
Direct Marketing:

Direct Marketing includes marketing our Products to local customers by directly showing our
samples to them. To Local distributors, small Kirana shops, supermarkets directly.

Figure 6: Direct marketing of mushrooms.

Social Media Marketing:

Promoting our Mushroom products through the social media such as Facebook, WhatsApp,
Instagram etc., by posting our Production videos and Photographs in those Websites which
helps in reaching more number of customers who are active in social medias.

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 Figure 7: Social media marketing.
Advertisements:

Advertising our products through Distributing the Pamphlets, Banners and giving adds in
Televisions.

Figure 8: Advertisement of mushroom.

Pricing:
Pricing is the Amount to be paid for Mushrooms.

Fresh Oyster Mushroom: 300/kg

Dried Oyster Mushroom: 700/kg.

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Distribution:
Distribution channels include

 Delivery through our agents which are nearby.

 Partnership with delivery companies.

Sales:
We are selling to the

 Super markets
 Local health stores
 Restaurants
 Small Grocery stores
 Direct to local buyers

Forecast sales:
In the Next 3- 5 years our forecast is increasing in Number of sales domestically and thinking
to export our products to other countries.

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6 MANAGEMENT PROFILE

Mentoring will be taken from advisory boards who will guide in loop holes other employees
hired will look into the other section like Lab-in charge, accountant, packaging, distributors
lead and labours.

CEO (Lekha sree)

Co -
founder(Pr athamesh)

Strategic R & D (Meghana) Marketing

Manager(Amey) Head(Ankit)

CEO: CEO is the head of the Mushroom business where capital, financial activities and
production process activities are taken care by the head of the company. Plays major role in
hiring Strategic manager, R& D Manager, Marketing head.

Co-Founder: Co- founder is Next to the CEO in the company. He also plays a major role in
the business by giving suggestions to the CEO, he is the major shareholder in the company.

Strategic Manager: Strategic manager gives plans from production process, pricing, sales
etc how to increase those and how to increase the reachability of the farmers.

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R & D: Research and development manager will think of doing different sterilization
methods, process of producing mushrooms by using different chemicals which helps in
maintaining hygiene by not affecting with different pests and diseases.

Marketing head: Marketing head includes key role in type of marketing methods to be
followed in order to increase the reachability to the farmers. Increase in the sales by creating
awareness through the marketing of mushroom.

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7 FINANCIAL ANALYSIS
Financial analysis is the process of evaluating businesses, projects, budgets and other finance-
related entities to determine their performance and suitability.

Cost of Cultivation:
The cost of cultivation includes factor costs up to the stage of gathering the harvest.

Total cost of cultivation = Total variable Cost + Total fixed cost

Cost of cultivation for Oyster Mushroom production

Figure 8: Cost of cultivation of mushroom.

As B:C Ratio for is 1.79 we got profit.

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 Figure 9: Cost of cultivation of mushroom.
As B:C Ratio is 0.54 For We got Loss in 2nd Cropping.

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 Balance sheet for Oyster Mushroom Production

Balance sheet:
The Balance Sheet is a statement that shows the financial position of the business. It records
the assets and liabilities of the business. A balance sheet is the “Snapshot” of a company’s
financial position at a given moment and reports the amount of a company’s

 Assets – Current assets/Long-term assets

 Liabilities – Current Liabilities/Long-term liabilities
 Stockholders’ (or owner’s) equity – Common stock / Retained earnings

Table 1: Balance sheet for Mushroom

PARTICULARS 1st Year 2nd Year 3rd Year

LIABILITIES
Capital 0.00 1.64 2.40
Add: Addition 1.25 0.00 0.00
Add: Profit after tax 1.39 1.76 2.11
Less Drawing 2.64 3.40 4.51
1.00 1.00 1.00
1.64 2.40 3.51
Loan Liabilities
Term loan 3.75 3.75 3.75
Creditor 1.00 1.10 1.21
6.39 7.25 8.47
ASSETS
Fixed Assets 3.19 2.71 2.30
(Less Depreciation)
CURRENT ASEETS
Stocks 0.50 0.55 0.61
Debtors 1.50 1.65 1.82
Cash & Bank Balance 1.21 2.34 3.75
6.39 7.25 8.47

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Cash Flow Analysis:
 A cash flow analysis determines a company’s working capital - the amount of money
available to run business operations and complete transactions.
 Cash flow analysis refers to the evaluation of inflows and outflows of cash in an
organisation obtained from financing, operating and investing activities. In other
words, we can say that it determines the ways in which cash is earned by the
company.

 It measures how much cash is generated and spent on the business during a given
accounting period.

Table 2: Cash flow analysis for Mushroom

Description Year 1 Year 2 Year 3

Cash balances 32,400,000 67,332,089 69,957,078
Sales 100,237,500 100,237,500 100,237,500
Capital loan 0 0 0
Total Cash inflow 132,637,500 167,569,589 170,194,578
Cash Outflow - - -
Instalment loan 14,479,600 28,959,200
Profit sharing 14,406,289 14,406,289 14,406,289
Investment cost 0 0 0
Variable cost 17,827,500 35,655,000 35,655,000
Fixed cost 32,400,000 32,400,000 32,400,000
Alms 2,5 % 671,622 671,622 671,622
Total cash outflow 65,305,411 97,612,511 112,092,111
Net cash flow - - -
Accumulated cash 67,332,089 69,957,078 58,102,467

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