Business Plan on

APNA KITCHEN

SUBMITTED BY:
RAVI PRAKASH TIWARI
PGDM 18-20
PLACE – MEERUT, UP

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 ACKNOWLEDGEMENT

It is really a matter of great pleasure for me to undertake & present this creative &
practical work, a project report on business development plan.
This report has been prepared by keeping in mind various aspects relating to market
condition, financial feasibility and operational feasibility as well.
I am indebted to Dr. SATENDRA SOAM, DIRECTOR, MASTER SCHOOL
OF MANAGEMENT, MEERUT, for his expert guidance and valuable
suggestions which enable me to submit this project report.
I also express my sincere thanks to my business partner cum friend Mr. Anand
Singh, who has guided me at each and every step while developing the business plan.
Also, I would like to thanks my junior Mr. Sanjeev Tiwari for helping me in the
project.
Finally, I would like to thank one and all who have helped me directly or
indirectly in preparing this report.

Ravi Prakash Tiwari

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 PREFACE

This report contains the business plan of Milk, Fruits & Vegetables and supply chain
of Apna Kitchen. This is like a map. Starting the business without any plan is same as
a journey without map or guide. Business plan checks the reality and viability of
proposed business.
I have tried to justify the project by analysing the feasibility of business. This project
also includes the estimation of future income statements, cash flows and break-even
analysis as well.
The object of this project report is to learn how to write business plan and how to
check the feasibility of proposed business

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 TABLE OF CONTENTS
S. No. Title Page
I Executive Summary 5
II General Company Description 8
III Products & Services 11
IV Marketing Plan 12
V Management & Organization 15
VI Financial Plan 18
VII Appendices 24
VIII Conclusion 32

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 I. EXECUTIVE SUMMARY

The Indian Fruits and Vegetables Industry

India is the second largest producer of the fruits and vegetables in the world after
China. The country has diverse topography and climate, which ensures availability of
fruits and vegetables in every season. During 2021-22, India produced 204.61 million
metric tonnes of vegetables and 107.10 million metric tonnes of fruits. The area under
cultivation of fruits stood at 7.09 million hectares in 2021-22, while vegetables were
cultivated at 11.28 million hectares. In addition, India leads the world in the
production of ginger and okra, along with banana, papaya, mango, and guava.

Production and export of Indian fruits and vegetables have increased in recent years.
During 2021-22, India exported fresh fruits and vegetables worth US$ 1.527.60
million, which comprised fruits worth US$ 750.7 million and vegetables worth US$
767.01 million. India mostly exports to its neighbours, namely the UAE, Bangladesh,
Pakistan, Saudi Arabia, Sri Lanka, and Nepal. India's global market share is still only
about 1%, but its horticulture products are becoming increasingly popular due to
advancements in cold chain infrastructure, research, contemporary post-harvest
technologies, supportive governmental policies, and quality control procedures.
Production of Fruits and Vegetables in India
According to the United Nations' Food and Agriculture Organization (FAO), India
was the world's second-largest producer of fruits and vegetables. India’s food industry
is large, and the biggest fruit-producing states are Andhra Pradesh, Maharashtra,
Madhya Pradesh, Uttar Pradesh, Tamil Nadu, Karnataka, and Gujarat. The major
vegetable-producing states are Uttar Pradesh, Madhya Pradesh, West Bengal, Bihar,
Gujarat, Odisha, and Maharashtra.

Fruit production in India increased to 107.10 million tonnes in 2021-22 from 97.97
million tonnes in 2018-19, at a CAGR of 3.0%. Further, the vegetable market
production expanded by 3.8% CAGR to 204.61 million tonnes during this period.

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Outlook
India's food processing sector is one of the largest in the world and has gained
prominence in the recent years. The availability of resources and encouraging
government policies have contributed significantly to the industry's expansion.
Fruits and vegetables are the key sub-segment of this industry. For 2022-23, the
government has fixed an export target of US$ 23.56 billion for the agricultural
and processed food industry, 40% of which has already been achieved in the first
four months of this year. South Asian & Middle Eastern countries have been the
major destinations for India’s fruits and vegetables. However, it has huge
potential to increase its presence in untapped markets in the near future.

Dairy Industry of India: The Past, Present, and Future

In India, dairy and dairy products are staples in every home. In India, milk plays an
important role in both daily life and religious rites. In addition to this, millions of
people, especially women, in rural regions rely on the dairy industry for their
livelihood.
Since 1998, India has had the world’s largest bovine population and has been the
world’s top milk producer. From 1950-51 to 2017-18, India’s milk production
increased from 17 to 176.4 million metric tonnes (MT). Dairy farming has been more
important in improving the economic prospects of marginal and female farmers and is
now relied on by millions of rural people as either a major or secondary source of
income.
Challenges –
Small-scale, dispersed, and unorganized milk-animal owners; low productivity;
inadequate and improper animal care; a lack of professional management; a dearth of
basic infrastructure for the provision of production inputs and services; and an
inadequacy of basic infrastructure for the sourcing, transportation, handling, and
marketing of milk are a few of the challenges of the Indian dairy industry. Most milk
comes from cows and goats kept by poor farmers and city people who don’t have

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access to pasture. Mixed-crop and livestock farms are common, and most milk cows
are fed agricultural by-products and residues, which have very low opportunity costs.
This means the dairy industry faces more challenges.
Future Trends to Keep an Eye On
The dairy industry in India is aiming to build a $355 billion industry by 2025. In the
future, the following trends can be witnessed: Direct-to-Consumer Deliveries: There
will be an increase in the number of businesses that provide express direct-to-
consumer deliveries of dairy and dairy products. These businesses will allow
consumers to place orders directly with the dairy supplier. Encourage digital banking:
Promoting digital banking, digital payments, and fintech would help the livestock
industry as a whole by making it faster for farmers to get paid for milk and other
services they provide. Infrastructure: Throughout the whole of the supply chain, milk
and other items that are directly associated with it need to be kept at the correct
temperature. With the help of several government programs, the dairy industry in
India is putting in place the right infrastructure to keep a smooth supply chain all the
way to the consumers’ doors. Digitalizing the Local Store: Bringing the local shop
onto the digital platform is one of the developments that can be anticipated in the
future. This will enable speedier door-step delivery of dairy goods.

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 II. GENERAL COMPANY DESCRIPTION

Name of the unit:

Apna Kitchen – Come to life, come to Apna Kitchen
The idea behind keeping the Startup named Apna Kitchen is that it will give the
consumers an idea that it is for them, just as we get our fresh food from our
kitchen this business will provide them with the best quality fresh veggies, fruits
and milk and we have also given a thought that once we grow to a scalable
point, we can also venture in other food segments.
Home delivery system is one of our competitive advantages. The system of
home delivery will not only help the customers, but it will also help us to reduce
the wastage and efficient purchasing as per the order.
Business Description:
Apna Kitchen will be a company which provides fresh fruits & vegetable and
Milk to the customers at reasonable price and at their convenience. The
company will be aiming for customer satisfaction and retention rather than on
expansion and huge growth. The company will be delivering fruits and
vegetables at the door of the customer. Customers in the Prayagraj City
(Allahabad) do not have the access to the informal vegetables, fruits and Milk
markets and so, they have to purchase their required items from the local shops,
malls and supermarkets which sell these fruits and vegetables at higher margins.
The customer also does not mind paying the little extra price for the quality
products which these retail formats provide. I have observed while standing in
the queue at reliance fresh or big bazaar that people are purchasing their fruits
and vegetables for the whole week or for three to four days and are paying bills
of more than Rs. 500 for their fruits and vegetable requirements. In this
scenario, Apna kitchen will provide relief to the customers from going and
standing in the long queues for their requirements. The convenience and quality
produce will ensure the customers satisfaction and will be the seed for the
company development and growth.
Type of Unit:
The Apna Kitchen will be a limited liability partnership firm.
Apna Kitchen will fall under the category of Micro Scale industry unit because
its turnover is not more the 5 Crores as well as the capital investment in fixed
assets is less than Rs. 1 Crore.

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Mission:
To become a market leader in fruits and vegetables market in Prayagraj city
within 5 years.
Vision:
To provide Fresh Milk, Quality Fruits & Vegetables Mart service to customers and to
be a global player.
Objective:
1. To provide quality items to consumers.
2. Fast and contactless delivery.
3. Fresh & Hygiene products.
4. Provide delivery at doorstep at reasonable price
5. To benefit from eliminating the limitations of existing traditional
supply chain.
6. Exceed customers' expectations for service and product.
7. Develop a sustainable start-up business that is profitable
8. We would advertise about Fresh fruits & Vegetables through various
media
Channels like newspapers, magazines, website, pamphlets, and cable
Advertisements, FM, Direct E-Mail and Facebook official page etc.

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Location of Warehouse:
Our warehouse will be located at Tagore Town as it is in the centre of targeted
place and near to our customer base.
Address:
We will be operating in, Apna Kitchen, Ram Villa guest house, Near Sangam
Petrol Pump, Tagore Town, Prayagraj – 211002.
Techno economic reasons for site selection:
We have also considered the techno economic factors before selection of site
because it is the decision which is irrecoverable in nature and it is very hard to
change the location. There are many reasons for site selection. Our decision of
site selection is based on the following economic reason.
Nearness to customer base
Easy for transportation
Efficient time management
Familiar with the location
Already knows some people around

Requirement of land:
The basic activity of the Apna Kitchen will be to acquire and pack the fresh
vegetables, fruits & pure milk and then deliver it. One warehouse will be taken
on rent. The goods will be purchased on daily basis and there will be no any
storage.
One warehouse of 1000 square feet will be enough for above stated activities.

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 III. PRODUCTS AND SERVICES

Primary product of the company is fruits and vegetables. It will include all the
seasonal fruits & vegetables, off season fruits & vegetables.

Fruits:
Banana, Mango, Pomegranate, Guava, Apple, Date, Coconut, Grapes, Papaya,
Melons, Oranges etc.

Vegetables:
Potato, Tomato, Onion, Chilly, Ginger, Capsicum, Drumstick, Coriander, Lettuce,
Cauliflower, Cabbage, Carrot, Okra, Lemon, Brinjal, Garlic, Colocasia, Bottle
gourd, Spinach etc.

Fresh Milk:
We will be providing fresh milk to our customers.

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 IV. MARKETING PLAN

PRESENT STATUS AND MARKET POTENTIAL:

Basic market Information:
Currently the majority of the fruits & vegetables and Milk market is unorganized.
Organized retailers are also there in Prayagraj city but they would not be forming
more than 10% of the total market. Prayagraj city have wholesale Vegetable & fruit
market at Dhoomanganj only. Customers of the city expect the quality products at
reasonable price.
Existing Fruits and vegetables retailers in the area:
There are major organized players in this area such as Big Bazaar in Civil Line,
Gromart in Alopi bhag Chungi. They pose a strong competition base for our business.
Expected Customers and Selected Areas:
The customers will be those people who want to spend the quality time with their
families and expect quality fruits and vegetables at their convenience.
The company is going to serve the major four areas of the Prayagraj city – Civil line
area, George Town area, Tagore Town Area and Colonel Ganj Area. Combined these
areas includes around 140000 households. The company is aiming to get 1000
customers initially.
Scope for Diversification:
Apna Kitchen has huge scope for diversification in various other products like FMCG,
Groceries, Food grain items and dairy products. Our Company will be taking order
online and offline as well. Apna Kitchen also has huge opportunity for expansion the
market base as it will less capital expenditure. Apna Kitchen is also planning to
procure the fruits, vegetables and Milk directly from the farmers which will open the
flood of opportunity for the company for trading with other organized retail stores,
wholesale open market operations and easy expansion for the home delivery model.
Though the company has many diversification opportunities, it will insist more on
sticking to the core business of fruits, Vegetables and Milk business. The company
wants to build a strong brand for the fresh fruits, vegetables and Milk. The expansion
of the home delivery model will be the core focus for the company growth and
expansion.

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Risk Factor:
1. Apna Kitchen will have to strive hard to keep the delivery cost in control.
2. Procurement of the quality products and their quality maintenance while transit
will also require substantial system and efforts.
3. The price of the fruits and vegetables are very much volatile. Sudden price
increase may couch on the profit margin of the company.
4. We have to be on the top of Milk quality.

Positioning:
Whenever customers need fruits, vegetables & fruits, “Apna Kitchen” must come first
in their mind first. Apna Kitchen will be positioned as the fresh fruits, vegetables and
pure milk provider for on time delivery.
Fruits like grapes, strawberry, blackberry will be cooled at the assortment centre and
then will be delivered. Only qualitative fruits and vegetables will be packed and poor-
quality fruits and vegetables will be assorted and sold in the wholesale market if
possible.
On time delivery schedule also will be strictly adhered. Drivers will be negatively
reinforced for on time delivery to the customers.
Management concentration will be more on existing customer satisfaction and
customer retention rather than on expansion.
Segmentation:
Target segment will be upper middle-class and upper-class people living in the
targeted area. Target customers would be those housewives who do not want to move
around for purchasing fruits, vegetables and milk.

Customer Relation:
Existing customers would be retained by providing fresh, hygienic and good quality
fruits, vegetables and pure milk; timely delivery is also highly insisted for higher
customer satisfaction. In case of non-delivery of the goods; those goods will be
delivered for free on the next day. The customers will be allowed to change their order
till 10pm.
Competition:
Apna Kitchen will have competition from Big Bazaar, GroMart, local fruit &
vegetable stores and fruits vendors & vegetables venders, milkmen, dairy shop.

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Competitive Advantage:
Apna Kitchen will be able to deliver goods at the customer’s home. Home Delivery
Model has ensured zero cost in real estate, which will help to serve customers at
lower/reasonable price. Loyal customer base creation will help for sustainable
development/growth.

Conclusion:
Though there are several competitors in the market of Prayagraj city, Apna Kitchen
will be able to achieve success through its core focus on the product quality and high
level of on time commitment.

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 V. MANAGEMENT AND ORGANISATION

Our organisation structure would be a very simple one where the work will be
distributed in four departments:
Operations:
This department would be responsible for sourcing of material i.e., fresh fruits,
vegetable and Milk to the warehouse as per the orders already received.
Other work includes packaging them as per order and get those items delivered to the
customers.
This would be led by Anand Singh, Founder of Apna Kitchen and would be assisted
by Manendra Singh Co-Founder of Apna Kitchen.
Marketing & Research:
This team would bring us lead through the market research and try to establish a good
connect with the prospects and build our brand image.
This department would be managed by Tamanvay Agarwal.
Finance:
This department will arrange the funds needed to operate the business through
different means and also managing the expenditure relating to human capital.
Ravi Prakash Tiwari, Co-Founder of Apna Kitchen, will be leading this department.
Consumer Relations
The primary work of this department would be to arrange all the orders as per the
requirement and handle those to the Operations Department for sourcing.
This would also handle the feedbacks from the existing consumers and handle the
problems arising in the delivery.
This department would be managed by Sanjeev Tiwari.

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Detail of each owner or managerial employee in business:
Name : Anand Singh (Founder)

Telephone no.: 9519814140

Date of Birth: 05/06/1998

Educational Qualification: PGDM (Finance)

Name: Ravi Prakash Tiwari

(Co-Founder)
Telephone no.: 9479495452

Date of Birth: 03/01/1998

Educational Qualification: PGDM (Finance)

Name: Manendra Singh

(Co-Founder)
Telephone no.: 8770157185

Date of Birth: 31/12/1995

Educational Qualification: B. Tech (Mechanical)

Name: Sanjeev Tiwari

(Consumer Relations
Manager)
Telephone no.: 9624586241

Date of Birth: 26/07/2000

Educational Qualification: BBA (Marketing)

Name: Tamanvay Agarwal

(Marketing Manager)
Telephone no.: 8881049820

Date of Birth: 22/05/2000

Educational Qualification: BBA (Marketing)

1.

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Operations Process:

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 VI. FINANANCIAL PLAN

Cost of Project:

Amount in
Particulars
Rs.
Deposit for warehouse 40000
Warehouse development expenses 50000
Karat (300*100) 30000
Weight machine (6000*4) 24000
Milk Bottle (300*8) (700*13) 11500
Large Capacity Refrigerator 70000
Auto rickshaw carrier (20000*3) 60000
Preliminary & Preoperative expenses 60000
Working capital 150000
Software & IT 30000
Computer (1 Count) 25000
Telephone (500*2) 3000
TOTAL 553500

Cost of Project

Amount in Rs.

0 100000 200000 300000 400000 500000 600000

Deposit for warehouse Warehouse development expenses

Karat (300*100)
Milk Bottle (300*8) (700*13)
Auto rickshaw carrier (20000*3)
Working capital
Computer (1 Count)
Weight machine (6000*4)
Large Capacity Refrigerator
Preliminary & Pre operative expenses
Software & IT
Telephone (500*2)

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Means of Finance:

MEANS OF FINANCE
Amount in
Particulars
Rs.
Ravi's Capital 300000
Anand's Capital 300000
Business Loan from AU SFB 500000
Total Capital 1100000

Means Of Finance

Ravi's Capital
18%

Anand's Capital
Business Loan from AU
18%
SFB
64%

Ravi's Capital Anand's Capital Business Loan from AU SFB

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Preliminary & Preoperative Expenses:

Particulars Amount in Rs.

Legal expenses 10000

Project report preparation 5000
Electrification & water deposits 10000
Inauguration expenses & other expenses 10000
Market research 10000
Initial advertisement expenses 15000
TOTAL 60000

Preliminary & Pre Operative Expences.

Legal expenses
17% Project report prepara-
tion
Initial advertisement 8%
expenses
25%

Market research
17%

Electrification & water

deposits
17%

Inauguration expenses & other

expenses
17%

Legal expenses Project report preparation

Electrification & water deposits Inauguration expenses & other expenses
Market research Initial advertisement expenses

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Projected Income Statements:
Years (in Rs)
1 2 3 4 5
Particulars
Sales revenue 3200000 6400000 13200000 17812812 23800000
Less: - expenses
Cost of goods sold 1400000 2192900 6000000 8640000 9950000
Depreciation 19500 19500 19500 19500 19500
Repairs&
maintenance(vehicle) 30000 30000 30000 30000 30000
Salaries & wages 876000 1752000 2628000 3942000 3942000
Administrative expenses 112000 179200 268800 322560 387072
Selling & distribution 2356128
expenses 288000 518400 1047168 1570752
Interest 20000 20000 20000 20000 20000
Advertising expenses 50000 300000 600000 1200000 2400000
Warehouse expenses 250000 888000 1332000 1998000 2997000
Wastages 50000 100000 150000 210000 294000
Total expenses 2995500 6000000 12095468 106232588 209816925
Net profit 104500 5796676.2 12524828 26437188.4 54728152.4

Assumptions:

1. Company aspires to grow at 100% growth rate first 3 years then 50% in 4th year and 40% in 5th year

2. Loan will be paid in the 5 years fully.

3. Salary and wages will be increasing at 100% rate first 3 years then 50% in 4th year and 0% in 5th year

4. Selling and distribution expenses will increase by 80%, 70%, 60%, 50%, 50%

5. Administrative expenses will be increased at 60% ,50%, 40%, 20% & the 20% due to increase in the span of operation.

6. Wastages will be increasing at 70%, 60%, 50%, 40%, and 40% on y-o-y basis.

7. Company will increase advertisement expenses at 100%, 50%, 40%, 30% and 30% on y-o-y basis.

8. Volume of the orders has been considered instead of the individual items.

9. Gross margin rate is considered to be the same.

10. Additional Refrigerator, karats, computers, weighing machine will be purchased every year due to higher capacity
requirements.

11. Company office will be opened in the fifth year

Interest Calculation:
Particulars Amt. in
Rs.

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 Interest On Term Loan from AU SFB (@ 10%) 20000

TOTAL 20000

Manpower Requirement:

Sr. No
Particulars Salary  
No. .

      Monthly (in Rs.) Yearly (in Rs.)

A) Warehouse staff      
  Supervisor 1 10000 120000
  Packing staff cum delivery man 3 18000 216000
B) Office staff      
  Accountant 1 6000 72000
C) Purchase staff 3 21000 252000
D) Drivers 3 18000 216000
  Total   73000 876000

Utilities And Overheads:

AMT. IN RS.

Particulars Monthly Yearly

Rent 15000 180000

Transportation (inward
10000 100000
carriage)
Electricity 3500 42000
Miscellaneous - 5000
TOTAL   227000

Material Requirement (Monthly):

Particulars Amt. in Rs.
Fruits & Vegetables 60000
Cow Milk (30*40*30) 36000
Buffalo Milk (20*50*30) 30000

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Administration Expenses
Sr.
Particulars Monthly Yearly
No.
1 Stationery and printing 1000 12000
3 Telephone and fax 500 6000
4 Legal charge 5000 60000
6 Travelling 2000 24000
7 Miscellaneous - 10000
  Total   112000

Note:
Travelling expense includes fuel expense of the person collecting orders and taking feedbacks.

Depreciation:

Particulars Amt. in
Rs.
Refrigerator (@ 10% on Rs. 7000
70,000)
Karat (@ 10%) 3000 Selling & Distribution Expenses:

Computers (@20%) 5000

Weight machine (@ 25%) 4500

TOTAL 19500

Particulars Monthl Yearly

y
Outward carriage
Delivery expenses (fuel cost) 10000 120000
Vehicle rent (5000*2) 10000 120000
Packing expenses 4000 48000

TOTAL 288000

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 VII. APPENDICES

Detailed lists of equipment owned or to be purchased:

Particulars No.

Delivery Vans 2
Karats 100
Computers 1
Billing Machines 2
Warehouse 1
Chairs 5
Tables 3
Refrigerator 1

Expected operational capacities:

Expected Operational Capacities

Delivery Van 200Kg

Karat 25Kg
Refrigerator storage
500Kg
capacity

Expected Operational Efficiency

Average Customer Interaction time at Delivery Time (Payment) 1.5 Minutes

Delivery Van Mileage 15Km/Litre

Average customer Packaging Time 1 Minute

Average Order Taking Time (On Phone) 1 Minute

Other Assumptions
Expected Amount Per Order Rs. 100
Packaging Cost 50p/package

Transport Route of Vehicle (2 Routes for a vehicle per day) 20 Km/Route

Electricity Units consumed per day 15 Units

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 Average No. of customers per day 30

Project implementation schedule:

PROJECT IMPLEMENTATION
SHEDULE
Particulars DAYS

Product selection & completion of market survey 10

Project report preparation 5

Site selection 5

Selection of vehicle & customization 4

Warehouse development 8

Recruitment of manpower 5

Sales arrangements 3

No. Of days required to implement project 40

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Brochures and advertising materials:
1.

2.

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 OUR HAPPY CUSTOMERS
Maps of location:

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Sample invoices of our customers:

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Social Media Accounts and Online Support:

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 VIII. CONCLUSION

Looking at the overall business plan we can conclude that, as far as the
need of the consumer is concern, it can be satisfied with the help of this
business model. Freshness is the aspect which matters as far as the fruits
and vegetables are concerned. This model emphasizes home delivery
system.

The challenge for this model will be inventory management, effective

procurement and waste reduction and cost reduction.

As far as the profitability is concerned, this project is very lucrative and attractive.

Sources –

https://www.cxotoday.com/specials/the-dairy-industry-of-india-the-past-present-and-
future/

https://www.ibef.org/blogs/india-s-fruits-and-vegetables-industry

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