PROJECT REPORT FOR THE

“OSU CARE JELLY PRODUCTS”

(Group Assignment)

by

FIN 08 – Team Innovators

Course: FIN 3207 – Enterprise Based Project (EBP)

Course Coordinator: Mrs. S.W. Thenuwara

Level Ⅱ Semester Ⅵ

December 2022

Department of Finance

Faculty of Management and Finance

University of Colombo
 NAME LIST OF TEAM MEMBERS

No Name Registration No Index

1 De Silva P M S K 2019/MS/8638 8588

2 Hansika W A C 2019/MS/8735 8685

3 Lakshani B C 2019/MS/8832 8782

4 Sajikala H I M I 2019/MS/8987 8937

5 Samarasinghe M R 2019/MS/8989 8939

6 Samarasundara H A (Leader) 2019/MS/8990 8940

7 Sithumina S H E J 2019/MS/9040 8990

8 Weththasingha W A P H S 2019/MS/9107 9057

9 Wickramathunga S S H 2019/MS/9114 9064

10 Wimalaratna K D N 2019/MS/9130 9080

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 ACKNOWLEDGEMENT

This report is the outcome of the FIN 3207, Enterprise Based Project 2022 as a part of the
BBA degree progarmme at the University of Colombo. Our team Innovators of in the Department
of Finance successfully launched the Osu Care herbal jelly product range which has numerous
health benefits for consumers. We would like to express our heartiest gratitude to the people who
are always behind us to complete the entire project successfully. We would not be able to complete
this project without their support. We are extending our heartfelt gratitude to the faculty-level
coordinator of the EBP program, Ms. Chethanee Digoarachchi for the invaluable advice and
guidance provided throughout the period. We are thankful for the support and guidance that we
received throughout this journey from our department coordinator for the Enterprise-Based
Project, Ms. Senani Thenuwara. Further, we are thankful to everyone else who has helped us even
with a single word of wisdom.

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 TABLE OF CONTENT

NAME LIST OF TEAM MEMBERS ............................................................................................. i

ACKNOWLEDGEMENT .............................................................................................................. ii

TABLE OF CONTENT ................................................................................................................. iii

LIST OF TABLES .......................................................................................................................... v

LIST OF FIGURES ....................................................................................................................... vi

1. INTRODUCTION ...................................................................................................................... 1

1.2 Rational for selection ........................................................................................................... 2

1.2.1 Benefits from the product............................................................................................ 2

1.2.2Market GAP ................................................................................................................. 3

1.2.3 Feasibility .................................................................................................................... 3

1.2.4 Environmental analysis ............................................................................................... 3

1.2.5 Personal competencies of the team members.............................................................. 5

2. BUSINESS PLAN ...................................................................................................................... 5

2.1 Executive Summary............................................................................................................. 5

2.2 The Organization and its Industry ....................................................................................... 6

2.2.1 The Organization ......................................................................................................... 6

2.2.2 The Industry ................................................................................................................ 8

2.3 Description of the Product and Services ............................................................................. 9

2.3.1 Osu Care Jelly Product Range..................................................................................... 9

2.3.2 Product Sustainability ............................................................................................... 12

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 2.3.3 Services ..................................................................................................................... 14

2.4 Target Market and Marketing Plan.................................................................................... 14

2.4.1 Target Market ............................................................................................................ 14

2.4.2 Marketing Mix .......................................................................................................... 15

2.4.3 Customer Relationship Management ........................................................................ 18

2.5 Manufacturing Plan ........................................................................................................... 19

2.5.1 Main Ingredients ....................................................................................................... 19

2.5.2 Production Process .................................................................................................... 22

2.5.3 Labor ......................................................................................................................... 24

2.5.4 Facilities and Suppliers ............................................................................................. 25

2.5.5 Packaging and Labeling ............................................................................................ 25

2.6 Management and Human Resource Plan ........................................................................... 26

2.6.1 Organizational Structure ........................................................................................... 27

2.7 Financial Plan .................................................................................................................... 29

2.7.1 Initial Investment ...................................................................................................... 29

2.7.2 Usage of funds........................................................................................................... 29

2.7.3 Profit sharing and Financing ..................................................................................... 31

2.7.4 General assumptions for the financial statements ..................................................... 31

2.8 Forecasted financial statements ......................................................................................... 32

2.8.1 Forecasted income statement .................................................................................... 32

2.8.2 Statement of Financial Position ................................................................................ 34

2.8.3 Forecasted Cash Flow Statement .............................................................................. 35

2.8.4 Notes for financial statements ................................................................................... 36

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SPECIAL ACKNOWLEDGMENT ............................................................................................. 41

APPENDICES .............................................................................................................................. 42

Annexure 1 .............................................................................................................................. 42

Annexure 2 .............................................................................................................................. 44

Annexure 3 .............................................................................................................................. 46

Annexure 4 .............................................................................................................................. 46

Annexure 5 .............................................................................................................................. 47

Annexure 7 .............................................................................................................................. 49

Annexure 8 .............................................................................................................................. 50

REFERENCES ............................................................................................................................. 52

LIST OF TABLES
Table 2. 1 Unit cost and selling price along with profit margins for the Osu Care Jelly products 15
Table 2. 2 Customer relationship management of Indigenous Food Suppliers ............................ 18
Table 2. 3 Details of suppliers ..................................................................................................... 25
Table 2. 4 Production Cost per Product ........................................................................................ 30
Table 2. 5 Table General assumptions and details ........................................................................ 32

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 LIST OF FIGURES

Figure 2. 1 Figure Image of the Pure Ink Berry Set Jelly ............................................................... 9
Figure 2. 2 Image of the Ink Berry with Hibiscus Set Jelly .......................................................... 10
Figure 2. 3 Image of the Ink Berry with Katarolu Set Jelly .......................................................... 11
Figure 2. 4 Image of the Ink Berry Set Jelly with Custard Layer ................................................. 12
Figure 2. 5 Image of Kahipiththan Leaves.................................................................................... 19
Figure 2. 6 Image of a Hibiscus flower......................................................................................... 20
Figure 2. 7 Image of a Butterfly pee flower.................................................................................. 21
Figure 2. 8 Image of the brand logo and Image of the packaging cup ......................................... 26
Figure 2. 9 Organizational structures of Indigenous Food Suppliers ........................................... 27

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 1. INTRODUCTION

1.1 What is Our Product?

Modern busy lifestyles often conflict with the healthy aspirations of consumers who want
to achieve wellness through good nutrition. Ease of preparing meals and limited time or reluctance
to prepare and cook meals have shaped the lifestyle of many people today. Unknowingly, many
people in today's society have fallen victim to various diseases because they avoid eating healthy
and nutritious food and not getting meals at the proper time. Avoiding instant and unhealthy foods
and adopting healthy eating habits is the best remedy, but with a busy life, it is not so easy.
Therefore, in addition to avoiding diseases, many people have focused on finding remedies for the
diseases that occur.

Therefore, as Indigenous food Suppliers, we produce a herbal dessert product range at affordable
prices to tie in with modern-day customers' needs. Undoubtedly, it can prove that it is a delicious,
colourful, attractive, medicinal, and herbal dessert that can cure many painful diseases that are
easily and commonly caused by irregular health habits and dietary habits. We do not stick our
product to one particular product, but we manufacture four products that offer various benefits
using mainly herbal ingredients.

We implement our product mainly as the solution for gastritis and our product is mainly based on,
that means the main ingredient of our product is Kahipiththan leaves. When we come to the
benefits of Kahipiththan leaves, the solution for gastritis is not the only benefit from Kahipiththan
leaves. There are a lot of benefits from the Kahipiththan leaves such as reducing body heat,
Sounding the digestive system, increasing the immunity system, and reducing weight, for the good
health of the mouth. with this bunch of value, we want to add another herbal value, therefore we
have decided to produce a jelly product range by using a brand name called "Osu Care Jelly
Products". Along with the Pure inkberry jelly we decided to be produced Inkberry and Nilkatarolu
set jelly, Inkberry and Hibiscus set jelly and Inkberry jelly with a Custard layer.

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When we come to the quality of our product, we are always committed to producing a healthy
product that has herbal value. However, our team of Innovators is proud to present this herbal jelly
range with several health benefits along with quality and taste. Therefore, our Osu Care Jelly
Products can be considered a healthy, natural, and herbal jelly product range that is new to Sri
Lanka.

1.2 Rational for selection

As the team Innovators, we analyze the rationale for selecting herbal jelly production from
5 aspects. Those are the multiple benefits gained from the product, the considerable market gap,
the feasibility of the business idea, environmental analysis and the personal competencies of the
team members

1.2.1 Benefits from the product

The main ingredient that we are using for the production is Kahipiththan leaves. The person
who consumes this Kahipiththan jelly would be able to access a lot of health benefits.

➢ Predominantly, can be consumed as a medicine for gastritis

➢ A good remedy to reduce menstrual pain and streamlines the menstrual cycle

➢ Suppress high body temperature and cool down the body

➢ Increase appetite and ease digestion

➢ Cure urinary tract infections

➢ Best for cough, cold, and phlegm

Therefore, our team decided to select this business idea because when customers need to buy
anything from the market, they always seek cost and benefits.

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1.2.2 Market GAP

Many individuals suffer from gastritis, urinary tract infections, menstrual cramps, and
excessive body heat. There is no appropriate herbal remedy to deal with this problem. Even though
few instant products are readily available, they do have many adverse effects on the body through
continuous consumption. Therefore, most people are looking for a herbal solution that doesn't have
any side consequences. In the market, we couldn't see any jelly product made out using
Kahipiththan leaves. Also, our market survey results proved that there is a need for herbal remedies
and herbal medicine for such diseases (Annexure 1). Therefore, by considering the market gap we
decided to select the business idea.

1.2.3 Feasibility

• Market feasibility

Anyone can consume this herbal product because it has no adverse effects and there is no age
restriction since it is safe to use. Therefore, this product can be marketed to anyone.

• Finance feasibility

We can obtain raw materials at a reasonable cost. Therefore, we can sell these products at a lower
cost.

• Technical feasibility

The simple manufacturing process can be followed by all the team members. Consultancy from
the traditional, ayurvedic doctor.

1.2.4 Environmental analysis

To select the business, we used the SWOT analysis. it was helped to identify the strength,
weaknesses, opportunities, and threats of our product.

❖ Strengths

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 • Completely natural and herbal jelly which is with medicinal value to treat mainly gastritis
and previously mentioned diseases.

• affordable price with a high-profit margin.

• no chemicals were used.

• a product that can consume at any time anywhere and by any age group people.

• an eco-friendly product since the packing material is also biodegradable and has no
environmental impact.

• The abundance of raw material "Kahipiththan leaves"

• the initial investment is very low

• Ability to prepare the product by team members.

❖ Weaknesses

• Unawareness about "Kahipiththan leaves" and benefits

• Business is in the initial stage therefore unawareness of the brand

• Initial investment

• Lack of expert knowledge on the certification process among team members

• Longer healing time than chemical used medicine.

❖ Opportunities

• Gastritis is a common disease in many age categories.

• Growing demand for healthy and herbal products in the local and global market.

• Growing demand for eco-friendly products.

• less medicinal and herbal substitutes for gastritis.

❖ Threats

• Other herbal products available in the market (Aloe vera drink)

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 • Competition from existing jelly brands.

• Existing rules and regulations

• People prefer tasty food to quality food.

1.2.5 Personal competencies of the team members

Our team members had a different kind of skills, knowledge and experiences and it was also
influenced to select and develop this product successfully.

➢ Have the ability to identify the trends and needs of society.

➢ Have the capability to handle technology practices, HR practices and operational activities.
➢ Have the ability to handle financial-related activities properly.
➢ Have the ability to design the features of products (packages, labelling)
➢ Have the ability to face challenges
➢ Having the hard work

So, all the above matters are provided as the rationale for selecting this product.

2. BUSINESS PLAN
2.1 Executive Summary
In the modern world, people are becoming busier with their day-to-day work schedules. As
a result of that, people spend less time fulfilling their major needs. Especially the health and
nutrition requirements do not cover by modern instant foods and medicines. Due to that, lots of
health issues are arising. Concerning all of these things, we come up with a product that is known
as ‘Osu Care Jelly Products’. We mainly serve this product as a medicine for gastritis. Gastritis
became a huge problem due to wrong eating habits and everyday people are suffering from that.
Therefore, we expect our new product will be a great solution for mitigating this issue.

In addition to the main benefit, this will generate other advantages such as reducing menstrual
pain, controlling high body temperature, increasing appetite, and facilitating the digesting process.

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Therefore, our product is not only a cure for one health issue. It gives a mixture of health benefits.
This will be a new product experience for the Sri Lankan market because we build this product
from natural leave known as ‘Kahipiththan’. We facilitate a product that is more natural compared
to other chemical combined products in the market. With that, we are trying to offer a unique
product to the customers while protecting the herbal feature of the outcome.

In this report, we are demonstrating the overview of our whole business procedure. There is a
summary in the annexures about the suggestions we found in the evaluations from the beginning
of the project and how we could improve our idea according to the suggestions. (Annexure 2). The
description of the product will give a brief understanding of what kind of product we are offering
to the customers. The marketing plan gives the details regarding the advertising, promotional
activities, and how we implement the marketing mix. The manufacturing plan shows the steps of
production and the ingredients of the product. Dealing with employees, details about
organizational structure, and how we manage the human resource activities are indicated by the
management and human resource plan. The financial plan provides the information about financial
requirements of the business. Further, the forecasted financial statements give a proper
understanding of the firm’s future financial position.

2.2 The Organization and its Industry

2.2.1 The Organization

Nowadays, almost everyone, big or small, is suffering from some disease. Many people use
western medicine for that. However, these can cause side effects. There is a tendency in today's
society to prefer natural things. Natural remedies for ailments are also preferred. According to
the observations made by our team, mainly in society, many people are suffering from Gastritis.
This is a common disease among children and adults regardless of age. Moreover, we noticed that
many people are suffering from high body temperature, urinary tract infections, menstrual cramps,
etc. Also, many people are using synthetic chemical drugs for this. But because they can cause
side effects, it was found that natural medicines are preferred instead of synthetic chemical
medicines for such diseases.

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Effective local and natural medicines for the above diseases are widely available in Sri Lanka. But
related products are lacking in the market. Thus, taking into account the demand in the market for
natural medicines and the shortage in the market to meet them, our team decided to create a remedy
for this. Accordingly, we decided to present a product to the market that can be used by anyone
of any age using local natural medicinal ingredients. As a result, we have established "Indigenous
Food Suppliers". Here we primarily focus on using ingredients with natural medicinal properties
and we hope to diversify our products to suit the needs of consumers. We hope to utilize the above
opportunity to build a business that meets the market demand and customer needs by appreciating
natural things that are good for society and thereby generate income.

2.2.1.1 Overview of the organization

Vision

To become the pioneer organization in the indigenous herbal food manufacturing industry.

Mission

To grow our business by providing quality, taste, and naturally healthy food products to
consumers at affordable prices by Enhancing value for our customers by providing natural
products that provide medicinal value.

Core values

• Quality - We use high-quality ingredients, a standard manufacturing process, and a pack in

good condition for our products.
• Accountability - we are accountable for all actions and results which are coming from our
products.
• Customer-oriented- We provide medicinal jelly products that are a remedy for multiple
diseases at affordable prices. It is offered with a sweet taste to attract many customers
according to their preferences.

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 • Operational excellence - we always work together and before taking a decision we get
opinions from every member.
• Fair competition - we use quality ingredients and fair prices to compete fairly with other
competitors by differentiating our products.

2.2.2 The Industry2

Porter's five forces were used to examine the industry analysis of our jelly products.

Bargaining power of the buyers

This product is not available in the market and when they make this jelly at home, they
should put some effort into preparing this. But we can produce ready-made products for a cheap
price. Therefore, relatively there is less bargaining power for the buyers in the industry.

Thereat of substitutes

There are limited substitutes for this product. Because it has more herbal value than other
products and it provides a new experience for customers and suppliers.

Bargaining power of suppliers

We can easily obtain the Kahipiththan leaves, and it does not require much larger space
and even under normal weather conditions, they can be grown.so there is low bargaining power
for suppliers.

The threat of new entrants

In the market, there is less tendency to introduce this kind of product and also there is less
awareness about this product. Because most people rely on artificial medicines for deceases rather
than going with a natural product.

Rivalry among existing competitors

There are two major competitors in the industry. Those are aloe vera drinks by SMAK &
MD and Beem hela osu syrup. But our product is different from theirs because our product is not
a liquid one. So, if a person does not prefer to take drinks, they can use our product.

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2.3 Description of the Product and Services
Indigenous food Suppliers produce a herbal dessert product range at affordable prices to tie in with
modern-day customers' needs. Undoubtedly, it can prove that it is a delicious, colorful, attractive,
medicinal, and herbal dessert that can cure many painful diseases We do not stick our product to
one particular product, but we manufacture four products that offer various benefits using mainly
herbal ingredients. Below is a brief introduction with related benefits to the range of products we
manufacture.

2.3.1 Osu Care Jelly Product Range

2.3.1.1 Inkberry Set Jelly

Inkberry set jelly is our most exclusive and core product which provides the foundation for
the other three products. This is a natural Jelly product made of natural leaves which can be used
as a dessert. This is produced using the leaves of an indigenous plant species known to be inkberry
(Kahipiththan). Other than the inkberry, it includes water, gelatin sugar, and potassium sorbate
(preservatives) as the ingredients. The product outlook is very attractive since it is a leafy green
jelly layer. Its weight will be 80g and contains a reusable transparent plastic cup with a lid. Not
only that, the product is labelled on top of the lid and around the cup, including the information
about the product. As this is a set jelly product, it is best to store it in the refrigerator until consumed
to preserve its taste, colour, nutrients, and appearance.

According to the cost calculations and the herbal medicinal value that can gain through the pure
inkberry jelly, we as the Indigenous Food Suppliers have decided to provide this herbal jelly
product at an affordable price of Rs.80.00. It is a healthy lifestyle choice and could play a major
role in controlling gastritis which is a common disease in many age categories. Furthermore, this

Figure 2. 1 Figure Image of the Pure Ink Berry Set Jelly

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product is not just an ordinary dessert with only one benefit, but this is like a hub of benefits that
anyone can use. An instance, this is a good remedy to reduce menstrual pain and streamlines the
menstrual cycle. An instance, this is a good remedy to reduce menstrual pain and streamlines the
menstrual cycle. This will increase appetite and eases digestion. Moreover, this will cure urinary
tract infections. When looking at the benefits associated with the consumption of this product,
which has so many valuable medical benefits, this can be considered a very easy-to-consumable
product. That is because this is an instant and essential herbal dessert for all of us who lead busy
lives.

2.3.1.2 Inkberry and Hibiscus Set Jelly

In addition to the inkberry layer, this product contains a layer of hibiscus jelly on top. And
on top of these two layers of jelly are bits of dried fruit pieces added for extra appeal and flavour.
Therefore, this is an incredible herbal dessert with many medicinal properties. This is a very
colourful product that contains leafy green and glowing red two jelly layers with colourful fruit
pieces, and the product sells at Rs.110.00. Apart from inkberry set jelly, the basic ingredients her

Figure 2. 2 Image of the Ink Berry with Hibiscus Set Jelly

are syrup extract from hibiscus petals, sugar, water, vanilla, and lemon. The net weight of the
entire product is 80g which contains two equivalent layers of 40g.

The Hibiscus jelly layer has many potential uses that might benefit various health conditions. The
followings are some of the benefits that can get by consuming this product. It can help boost the
immune system and may help to prevent cell damage caused by free radicals in the body. Also, it
can reduce your risk of developing many significant health complications such as heart disease,

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diabetes, and cancer. This Hibiscus jelly layer enhances the skin's ability to retain moisture, which
is a key factor in retaining a youthful complexion.

2.3.1.3 Inkberry and Butterfly Pea Flower Set Jelly

The entire production process, all other ingredients, and the prices are the same as the
"Inkberry and Hibiscus set jelly" product, but the only difference in this product is that instead of
hibiscus flower pellets, butterfly pea flower pellets are used. That is, there is a layer of butterfly
pea flower jelly between the inkberry jelly layer and the dry fruit pieces in this product. Hence,
this is an attractive product that contains leafy green and azure blue two jelly layers with colorful
fruit pieces. The butterfly pea jelly is a dessert that has many health benefits. It can help improve
cardiovascular health and boost energy levels. Additionally, it can protect the body from free
radicals that can damage cells. Some of the benefits include reducing stress, improving mood, and
aiding indigestion. Plus, it has anti-inflammatory properties that can help relieve pain and
inflammation in the body and is a natural sleep aid.

Figure 2. 3 Image of the Ink Berry with Katarolu Set Jelly

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2.3.1.4 Inkberry Set Jelly with a Custard Layer

Figure 2. 4 Image of the Ink Berry Set Jelly with Custard Layer

This can be introduced as a dessert produced for the market segment that focuses on the
concept of taste beyond the concept of herbal values. By consuming this product, consumers get
the chance to enjoy the delicious milky taste along with the herbal taste. Like the other product,
this product has a base of a 40g inkberry layer, the net weight is 80 g and the price has been fixed
at one hundred rupees. It consists of a 40g custard layer and dried fruit pieces in addition to the
inkberry layer. Leafy green and golden yellow colors are included in the two layers of jelly which
can attract customers quickly. Apart from inkberry set jelly, the basic ingredients here are custard
powder, sugar, and milk. Milk is the source of custard powder, which is free of artificial flavors
and preservatives. Apart from the mentioned benefits of the inkberry layer, by eating custard
customers can obtain protein and minerals like calcium, magnesium, and iron which are good for
bone health. It also contains vitamins such as B1, B2, B3, and vitamin C which are good for
maintaining good health.

2.3.2 Product Sustainability

Osu care instant jelly products ensure that our jelly products are sustainable in most aspects and
the future of Osu care will last for decades with the growing demand for our products. We have
listed below some points to prove that our products and our business idea have sustainability.

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➢ The growing demand for healthy foods has become a trend in today's world not only in our Sri
Lankan context. When it comes to our product range, the products are made from ingredients
which have several health benefits and specially made out for health concerned people, as well
as our products can control various health issues mainly gastritis which is a major health
problem among every age level. Rather than using more chemical and non-healthy ingredients
we decided to go with the emerging demand for healthy food with the purpose of sustainability
and to provide answers to health concerns.

➢ The Osu care jelly products generate income from selling products and the generated profits
from sales are going to be used to introduce more unique and various healthy food products
for health-concerned customers. For this, Our R&D Manager believes that if we are going to
enhance and sustain our market position, we should be striving to introduce small-scale
innovations regularly and the HR manager will be recruiting agricultural and technical staff
for the continuous production process.

➢ The main ingredients that are used for the jelly production process are easily accessible and
naturally growing and can cultivate easily without using any fertilizers. Therefore, maintaining
the supply chain for a continuous production process will be manageable and less costly.

➢ Customers always seeking a quality product at a reasonable price. When it comes to our jelly
products people can consume high-quality health products at a reasonable price and this is not
a one-time purchase product. Therefore, our product especially has the characteristic of repeat
purchase tendency of customers. That means continuous manufacturing and distribution
processes will be ensured the sustainability of the product range.

➢ In the future, people will be busier with their lives. Therefore, will be able to examine a
growing demand for instant products rather than food to be prepared by spending people's time
which means the instant jelly product introduced by us will be able to satisfy the instant need
of customers.
➢ The product is an Ayurvedic product prepared by using herbal Kahipiththan leaves therefore
people will not be tempted to prepare this kind of Ayurvedic product at home. Therefore,
continuous demand for such Ayurvedic products can be ensured.

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2.3.3 Services

Even though our organization only provides the product, as a part of our objectives we are
expecting to provide the following services for the customers and the public as a whole.

➢ Product availability- Even though we are a new small-scale business, our marketing team
is expecting to available our jelly products to customers.
➢ Herbal product awareness- Maintain an active Facebook page to spread awareness
regarding herbal products and the benefits that gain from those herbal & quality products.

2.4 Target Market and Marketing Plan

2.4.1 Target Market

Today People are suffering from Gastric disease because people have a very busy lifestyle, and
they have a higher level of Stress with their job as well as day-to-day work. Most of the time people
do not have time to get their breakfast, therefore, without considering age limits everyone has
gastritis disease. Ink Berry Jelly products are also pure natural products anyone can consume for
Gastric disease without confronting any side effects subsequently.

There is no age limit to use this product because this is a herbal and natural product. People who
are suffering from Gastric disease and people who are not suffering from Gastric disease can
consume Ink Berry jelly products since Kahipiththan leaves include large numbers of herbal values
for customers. Therefore, as a business organization, we are targeting health-conscious people,
people who are suffering mainly from gastritis and other various health diseases, also people who
are tending to use quality food over tasty food that is demanded herbal products which give
medicinal value. Also, our organization manufactures a range of jelly products through those
differentiating we are targeting the other people category who does not belong to previously
mentioned categories and who are seeking tasty, colorful food items. Ink Berry Set jelly products
can be sold at an affordable price. Other substitute products have a higher price than this product
because of the prevailing economic conditions of Sri Lanka. The main ingredient of these four
products is Kahipiththan leaves, therefore, the cost of production is relatively low than substitute

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products. Thus, with the lower price and several herbal values of this product, this product can
compete with substitute products such as Aloe Vera drink, and Hela Beem Osu.

2.4.2 Marketing Mix

2.4.2.1 Product

There is main four Ink Berry jelly products. These are differentiated with natural flavours
like hibiscus and Katarolu and the artificial layer of Custard. One of Ink Berry's products has added
a Custard layer because people are sometimes not only concerned about herbal value but also tasty.
Therefore, the product range is Pure Ink Berry set Jelly, Ink Berry and Hibiscus set jelly, Ink Berry
and Katarolu set jelly, and Ink Berry set jelly with a custard layer product. The range of products
that we are planning to include in our product portfolio is as follows.

2.4.2.2 Price

With the prevailing economic situation in Sri Lanka, every product's prices have increased
drastically. Therefore, customers always find the lowest-value products. When competing with
Substitute products, as a competitive strategy, price is a crucial factor. When compare with
substitute products such as Aloe Vera and Hela Beem Osu, Ink Berry Jelly products have an
affordable price list. The unit costs of products' profit margins, profits, and selling prices have
illustrated as follows.

Table 2. 1 Unit cost and selling price along with profit margins for the Osu Care Jelly
products

Product Type Cost Profit Profit Selling

margin price

Pure Ink Berry Set jelly product 52.90 51% 27.10 Rs.80

Ink Berry and Hibiscus set Jelly product 78.40 40% 31.60 Rs.110

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 Ink Berry and Katarolu set jelly product 78.40 40% 31.60 Rs.110

Ink Berry set jelly with a Custard layer 78.90 27% 21.10 Rs.100

Since Ink Berry Jelly products have low-cost, the Management team can sell these four products
at an affordable price with a high medicinal value when compared with substitute products’ prices.

2.4.2.3 Place

Social media is the main advertising platform and demonstrating platform for four different
products. This product with different varieties can be posted on Facebook pages, WhatsApp
statuses, and other internet webpages like ikman.lk. By using these online platforms, the
management team anticipates increasing the awareness of the product. As an initial stage, this
product will be sold to the nearest and closest persons of team members, and a plan to sell our
products in the supermarket, grocery shops, pharmacies, and ayurvedic medical shops near to
Colombo district. However, our marketing team has planned to available our product all around
Sri Lanka in near future.

2.4.2.4 Promotion

We hope to promote our product step by step. First, we have positioned a curiosity in our
customer’s minds. For that, we prepared some sort of funny post. (Annexure 3). Then we stepped
up to an awareness program. Inkberry leaves are a little bit uncommon medical leave. Everyone
doesn’t know about this medical leave therefore we should be aware the society about the inkberry
leaves as well as the benefits of that leave. Not only inkberry leaves we should aware the society
about butterfly peas and hibiscus flowers. The reason is our product range is Consist of these
inkberries, butterfly peas, and hibiscus plants. Therefore, we have prepared a couple of posts to
fulfil that awareness purpose. (Annexure 4). Those products have sheared through the WhatsApp
status and our official Facebook page. (Annexure 5) When we come to the reason for choosing
WhatsApp and Facebook as social media platforms, we have thought that is the place where we
can easily reach our customer base. We highly market our product as a solution to gastritis and
there is no specific age range of people who suffer from gastritis that mush it is a common decease.

16
In the initial stage, due to the less awareness of our product and the brand, the sales promotion will
be taking place through free sample giveaways and a buy one get one free strategy. As well as
promoting the products through posters and banners in front of shops that are selling our products
and sharing leaflets are some of the strategies, we are planning to promote our Osu care jelly
products.

2.4.2.5 people

People in the marketing mix refers to anyone directly or indirectly involved in the business
side of the enterprise. That means the people who are involved in marketing, designing, customer
relationship management, production, etc. According to our team members, there are ten members
in our group those ten members are allocated to main five specific groups namely,

➢ Manufacturing team
➢ Marketing team
➢ Accounting & Finance team
➢ Research and development team
➢ The human resource management team

2.4.2.6 Process

The process of placing the product on the customer’s hand has been designed to optimize
customer satisfaction. When we come to our plan to achieve that target, we hope to distribute our
product through the supermarket, grocery shops, pharmacies, and ayurvedic medical shops.
According to our plan, we hope customers can easily reach our product.

2.4.2.7 Physical evidence

We hope to produce our product manually. This is a homemade product. Osu care jelly
product has a unique, attractive social media platform and the promotional activities are done via
social media. The logo of Osu care jelly products, packaging, supplier activities, and distribution
can be defined as physical evidence. The report taken from the Anala laboratory on whether it is

17
suitable to introduce the product to the market and the approval letter from the medical practitioner
is also in the annexures. (Annexure 6)

2.4.3 Customer Relationship Management

Customer relationship management is one of the most important factors of any business.
In our business, we always commit and give priority to our customer’s preferences. We always go
ahead with the concept of the customer is king. The following table shows our plan for how we
attract customers, how to retain customers, and how we grow customers.

Table 2. 2 Customer relationship management of Indigenous Food Suppliers

How we attract customers How we retain customers How we grow customers

• Differentiate our product

• Using attractive and • Improve customer support.
range
informative WhatsApp • We hope to arrange a
and Facebook post customer loyalty program. • Add some additional
value to our products
creation. • Commit to gaining the cost
• Introduce a product range. leadership advantage.
• Using Facebook and • Collect customer feedback.
WhatsApp as social media • Providing quality and
and those platforms are herbal products that are
most popular among demanded by our
people in any age customers continuously.
category.
• Using attractive
packaging and prices.
• Concern about the
appearance of the product.

18
 • Commit to delivering a
delicious as well as
nutritious product to the
customer.
• Mainly focus on customer
health.
• We are always committed
to ethically conducting
our projects.

2.5 Manufacturing Plan

The acquisition of raw materials functions as the initial requirement in the production
process. The production follows, which is a conversion phase where value addition occurs. The
application of high-quality raw materials, a skilled workforce, tools, and equipment makes the
entire process technically feasible. Since we intend to launch our business on a small scale, no
machinery will be set up during the initial stages of operation.

2.5.1 Main Ingredients

To produce pure inkberry jelly and layered products, we use several different ingredients. The
following are the main raw materials and a brief description of those ingredients.
2.5.1.1 Inkberry leaves (Kahipiththan leaves)

The scientific name for this climber is ‘Cyclea

peltata’, which bears oblong leaves representing hearts.
This herb, which primarily grows in the wild and along

Figure 2. 5 Image of Kahipiththan

Leaves

19
roadsides, is sometimes misidentified as a wild plant with no use for food or medicine. Because of
ignorance, climbers that are found in residential gardens are frequently removed or destroyed.

The remedy is known as Kahipiththan because it effectively treats cough (Kehi) and bile (Pitta).
Dr Palitha Sri Geegana Arachchige, an ethnomedical, claims that Kahipiththan can treat gastric
ulcers by lowering stomach acidity, “Kahipiththan jelly is an effective treatment for gastritis”. The
inflammation in the stomach line can be treated if the person takes Kahipiththan jelly for three
consecutive days, firstly in the morning", he said.

2.5.1.2 Hibiscus flower

The Malvaceae family of flowering plants contains the genus Hibiscus. “Several hundred
species that are indigenous to warm temperate, subtropical, and tropical climates around the world
make up the genus, which is quite vast”. The member species, often known as "hibiscus" or, less
frequently, "rose mallow," is renowned for having enormous, spectacular flowers. The 4.5-meter-
tall tropical Chinese hibiscus, often known as China rose (Hibiscus rosa-Sinensis), we are using
that China rose hibiscus flower for our product.

Numerous diseases, including cancer, asthma, Alzheimer's disease,

heart disease, and rheumatoid arthritis, are influenced by inflammation.
Hibiscus appears to have beneficial anti-inflammatory characteristics.
Consuming hibiscus has been proven to decrease people's blood
pressure in clinical experiments. Millions of people struggle with high
cholesterol, which can lead to catastrophic illnesses like heart attacks
and strokes. Some clinical research has indicated that hibiscus
Figure 2. 6 Image of a
decreases the cholesterol level in the body. Hibiscus flower

2.5.1.3 Butterfly pea flower

Butterfly pea, scientifically known as ‘Clitoria ternatea' is a flowering plant that falls into
the 'Fabaceae’ (Leguminosae) family category. It is commonly known and consumed by people

20
for its medicinal power (Craik, 2019). The Butterfly Pea flower is also widely used in traditional
medicine to cure various health issues. We use this blue butterfly pea flower extract for our product
considering its natural medicinal benefits. Flowers can be easily found in cultivated lands and
roadsides.

Butterfly pea is rich in antioxidants, flavonoids, and peptides, and it

is accepted as a natural cure for a variety of health issues. When
ingested in moderation, nutritionists generally regard butterfly pea
flowers to be harmless (Link, 2021). It has been proved in research
that butterfly pea act on various critical systems of the body.

Figure 2. 7 Image of a
Butterfly pee flower
According to studies, butterfly pea is a remedy for eyesight, hair loss, skin issues, menstrual
problems, brain functioning, stress and anxiety, asthma, cancer, HIV, diabetes, inflammation,
hypertension, and heart problems (majestic herbs, n.d.).

2.5.1.4 Custard

Custard is a widely known dessert based on sweetened milk, cheese, or cream thickened
with egg or egg yolk, and sometimes flour, cornstarch, or gelatin. It contains various nutrients such
as protein, carbohydrates, minerals (calcium, magnesium, and iron), and vitamins (B1, B2, B3,
and C). It can reduce cholesterol, give the body energy, and aids in weight gain (Nwokolo, 2022).

2.5.1.5 Potassium sorbate (K sorbate)

It's a common preservative due to its effectiveness and it doesn't alter the taste, smell, or
appearance of the product. This is "generally regarded as safe" by food safety authorities and is
harmless to the human body. For humans, 25 milligrams per kilogram of body weight per day is
the maximum permissible daily dose (HealthLine, 2017).

21
2.5.2 Production Process

The process of manufacturing is carried out at our manufacturing plant in Colombo with
the involvement of all the team members. (Annexure 7) The production process of each of our
differentiated products can be summarized as follows.

2.5.2.1 The production process of pure ink berry jelly

Step 01: Collect the required amount of inkberry leaves (around 20 leaves) and wash them

Step 02: Pound the leaves using a pestle and a motor and add some water (5 ml) during the process
of pounding.

Step 03: Squeeze the poultice to obtain the maximum extract.

Step 04: Add a little amount of gelatin (2g), water (60 ml), sugar (2g), and preservatives (Potassium
Sorbate 40mg) to the inkberry extract and mix well.

Step 05: Sending the products for finishing and packaging

Step 06: Store the finished product in a refrigerator to keep a longer.

2.5.2.2 The production process of inkberry set jelly with a custard layer

This product will offer to consumers in 80g jelly cups. Inkberry jelly will contain 40g of
the cup and the rest of the 40g will be filled with a custard layer. The procedure for making inkberry
jelly is the same as for making pure inkberry jelly. Therefore, only the custard layer production
procedure for 400ml (approximately 10 cups) is described below.

Step 01: Strain 500ml of water into a clean container

Step 02: Boil milk until it reaches 60℃, then take 50ml of half-boiled water to a different cup and
mix custard powder into it.

Step 03: Pour the 50ml milk mixed with the custard and 60g of sugar into the main container and
boiled it until the custard sets

Step 04: Take the container out of the stove and mix 400mg of Potassium Sorbate (K-sorbate)

22
Step 05: Pour 40 ml of custard into the jelly cup, filling it with 40 ml of inkberry jelly as the bottom
layer.

Step 06: Put a few fruit pieces on top of the custard layer

Step 07: Sending the products for finishing and packaging

Step 08: Store the finished product in a refrigerator to keep a longer.

2.5.2.3 The production process of inkberry jelly with Hibiscus layer

This product will also offer to consumers in 80g jelly cups. Inkberry jelly will contain 40g
of the cup and the rest of the 40g will be filled with a hibiscus layer. The procedure for making
inkberry jelly is the same as for making pure inkberry jelly. Therefore, only the hibiscus layer
production procedure for 400ml (approximately 10 cups) is described below.

Step 01: Collect the required amount of hibiscus flowers (around 10) and wash them well

Step 02: Pour some boiled water (40ml) into a clean cup and put washed flowers in it, using a
spoon take the maximum red colour. That extract can be used as the hibiscus syrup

Step 03: To make the gelatin, take a separate cup of 50ml hot water and 20g of gelatin powder and
mix well

Step 04: Take 400ml of water and add the prepared hibiscus syrup, gelatin, 40g of sugar, 2ml of
vanilla, a pinch of salt and lime, and 40mg of Potassium Sorbate to it, mix well

Step 05: Pour 40 ml of hibiscus into the jelly cup, filling it with 40 ml of inkberry jelly as the
bottom layer.

Step 06: Put a few fruit pieces on top of the hibiscus layer

Step 07: Sending the products for finishing and packaging

Step 08: Store the finished product in a refrigerator to keep a longer.

23
2.5.2.4 The production process of inkberry jelly with Butterfly pea

This product will also offer to consumers in 80g jelly cups. Inkberry jelly will contain 40g
of the cup and the rest of the 40g will be filled with a butterfly pea layer. The procedure for making
inkberry jelly is the same as for making pure inkberry jelly. Therefore, only the butterfly pea layer
production procedure for 400ml (approximately 10 cups) is described below.

Step 01: Collect the required amount of butterfly pea flowers (around 10) and wash them well

Step 02: Pour some boiled water (40ml) into a clean cup and put washed flowers in it, using a
spoon take the maximum blue colour. That extract can be used as the butterfly pea syrup

Step 03: To make the gelatin, take a separate cup of 50ml hot water and 20g of gelatin powder and
mix well

Step 04: Take 400ml of water and add the prepared butterfly syrup, gelatin, 40g of sugar, 2ml of
vanilla, a pinch of salt and lime, and 40mg of Potassium Sorbate to it, mix well

Step 05: Pour 40 ml of butterfly pea water into the jelly cup, filling it with 40 ml of inkberry jelly
as the bottom layer.

Step 06: Put a few fruit pieces on top of the butterfly pea layer

Step 07: Sending the products for finishing and packaging

Step 08: Store the finished product in a refrigerator to keep a longer.

2.5.3 Labor

One of the crucial resources in our production process is labour. At the initial stage, the
manufacturing process is completely labour intensive, and the members jointly employ in
production activities as no external labour is hired.

24
2.5.4 Facilities and Suppliers

Our Manufacturing plant is located in Maharagama which is one of our members' houses.
The majority of the team members are based in Colombo, making it simple to communicate and
coordinate operations. The suppliers of the main ingredients and materials are as follows.

Table 2. 3 Details of suppliers

• Suppliers from Bandaragama, Delgoda,

• Kahipiththan leaves
Panadura, Maththegoda

• Butterfly pee & Hibiscus flowers • Around the residences

• Gelatin, k Sorbate, Dry Fruit pieces, • Pettah Essence Suppliers, 19 Dam St, Colombo

• Sugar, Lemon, salt, Custard powder,

• Sampath stores, Maththegoda
Milk, Vanila
• Modern Pack Lanka (PVT) Ltd, Talagala,
• Plastic Cups & lids
Gonapala

• Label printing • Lihini Communication, Kottawa

2.5.5 Packaging and Labeling

For packaging purposes, 80ml transparent plastic cups with a lid are used to store jelly products.
These plastic cups can be steamed and reused several times. When it comes to labelling, the label
is designed by one of our team members and printed by a digital printing service. Both the

25
packaging and labelling process is done collectively by team members. Once all the cups are
labelled, the final product will be ready for distribution. (Annexure 8)

Figure 2. 8 Image of the brand logo and Image of the packaging cup

2.6 Management and Human Resource Plan

Human resource planning can be defined as a lifelong process of meticulous planning ahead to
make sure that a company's highly productive employees are utilized effectively. It strengthens the
entity's overall performance. Without the collaboration and support of the employees, the firm
cannot proceed forward. Planning human resource activities is consist of huge procedures and
steps. It involves planning, organizing, coordinating, evaluating, and controlling processes. As an
organization, we pay attention to obtaining highly effective tasks from the employees while
maintaining good associations with them. We plan to achieve company targets and employee
individual goals simultaneously. Therefore, we expect to get the ideal work appropriately from the
right personnel.

26
2.6.1 Organizational Structure

Managing Director

Samarasundara H A

Head of Head of Head of Head of HR Head of

Finance & Research &
Marketing Manufacturing
Accounting SSH Development
P M S K De H I M I Sajikala MR Wickramathunga SHEJ
Samarasinghe Sithumina
Silva

Assistant Assistant Assistant Assistant

Manager Manager Manager Manager

KDN B C Lakshani WAPHS W A C Hansika

Wimalaratna Weththasingha

Figure 2.9 Organizational structures

Figure 2. 9 of Indigenous Food Suppliers
We have ten members on our organizational team. As a whole, we all are working hard for
the success of the entity. We are undergraduates at the University of Colombo specializing in
management and finance. Entire team members have the proper knowledge and understanding of
the business aspects. With the learning experiences gained from the university, we can handle
business tasks efficiently. Also, all the members have good expertise and skills in different fields.
Therefore, that is a competitive advantage for us as an organization.

2.6.1.1 Marketing Division

Our marketing members play their role as real marketing practitioners. They are highly
motivated and work to attract customers in every possible way. With their abilities, we hope to
conduct our business in an effective way than the market competitors. Advertising, implementing
marketing campaigns to attract customers, using strategies to increase customer awareness,

27
promoting the product, handling the company’s social media platforms, and maintaining
techniques to retain customers are the main tasks of the marketing division. Initially, they forecast
the sales targets, and based on that, they carry out their tasks. In the end, they evaluate their
marketing efforts’ outcome.

2.6.1.2 Manufacturing Division

The manufacturing team mainly focuses on the production process, quality controls, and
maintaining low-cost materials. They are responsible for fulfilling customer demand at the right
moment. They are highly engaging to generate quality outputs throughout the process. This
division’s roles are comprised of formulating operational goals, coordinating manufacturing
procedures, monitoring and supervising operational activities, and implementing quality controls.
With the commitment and expertise of the manufacturing team, we expect to carry out effective
production while minimizing wastage and cost.

2.6.1.3 Finance and Accounting Division

The finance and accounting team is responsible for all the financial activities of the business. Funds
are like the lifeblood of the business. Therefore, this division deal with the riskiest functional
activities of the entity. This particular team’s scope is about recording financial transactions,
preparing financial statements, forecasting the budget, fund-collecting, seeking financing options,
and maintaining bank accounts. Members are accountable for generating financial transparency
throughout the company. The respective team has fluency and financial acumen regarding the
financial aspects.

2.6.1.4 Human Resource Division

This division consists of skillful members who have special competencies in managing
human resources effectively. They have more close connection with the employees than the other
division members. The division always handles employee concerns in an empathetic way. Their
role is all about hiring personnel, implementing training programs, dealing with employee
grievances, formulating HR-related strategies, evaluating the performance of the workers, and
developing employee skills. Here the main objective is to reach company goals while enhancing
the productivity of the workforce.

28
2.6.1.5 Research and Development Division
.
We assigned one in charge for this division. Under the in charge, other employees are
working. For that, we hired employees through the human resource division and allocate tasks
based on the specifications. Mainly this division focus on feasible quality controls, new product
Rs.
features, and product improvements. The respective division has the expertise and tech-savvy
people, to add new unique values to the products. This division is doing an important role in the
business concerning adjusting to technological advancements and updates.

All the members of the business give their maximum effort and support for the entity’s
performance. As a result of that, we can expand our business activities and reach the firm targets.

2.7 Financial plan

2.7.1 Initial Investment

Our partnership "Indigenous Food Suppliers" is a manufacturer of a range of Inkberry jelly

products that are enriched with Ayurvedic values. Each partner made a start-up contribution to
the company of Rs. 2000, adding up to a total capital fund of Rs. 20 000. Future finance
requirements are anticipated, and it will be possible to fulfil them through additional partner
contributions and bank loans.

2.7.2 Usage of funds

The product will be manufactured and stored at a facility owned by one of our partners in
the Colombo region. A monthly rent allowance of Rs. 8,000 is needed to be paid to hire this space
for business purposes. The acquisition of our main raw material (Inkberry leaves) has been
arranged with trustworthy suppliers close to the Kaluthara area. A refrigerator was provided by
one of our members to store the manufactured goods until they are distributed to stores. The market
value of the refrigerator according to our estimation is Rs. 60,000.

29
Table 2. 4 Production Cost per Product Rs.

Items Pure Inkberry and Inkberry and Inkberry set jelly with a
Inkberry set Hibiscus set Katarolu set Custard layer
jelly jelly jelly

Inkberry leaves 3.00 1.50 1.50 1.50

Sugar 0.50 1.50 1.50 2.00

Gelatin 17.50 35.00 35.00 17.50

K-sorbate
(Preservatives) 0.40 0.40 0.40 0.40

Custard - - - 10.00

Milk - - - 16.00

Vanilla - 8.50 8.50 -

Label 13.00 13.00 13.00 13.00

Cup 10.00 10.00 10.00 10.00

Spoon 1.00 1.00 1.00 1.00

Other Cost 7.50 7.50 7.50 7.50

(Electricity,
water, and
transportation)

Cost per unit 52.90 78.40 78.40 78.90

30
2.7.3 Profit sharing and Financing

All of our partners will receive an equal share of the profits and will also receive an equal
share of the losses. Since each partner is reassigned to a different department according to their
skills, salaries will not be provided to partners. Future capital requirements will be covered by
borrowing money from a bank or asking each partner for further capital. It adds to our advantage
when it comes to borrowing since our partners have well-known external networks. However,
internal sources will be the main source of funding. Therefore, the organization will strive to
maintain a sufficient level of internal liquidity.

2.7.4 General assumptions for the financial statements

According to our estimates, Indigenous food suppliers are expecting to maintain a healthy financial
performance and financial position over the next 3 years. Therefore, we have prepared a forecasted
income statement, financial position, and cash flow statement for the next 3 years. The projected
financial statements have been prepared under the general accounting principles and underlying
assumptions and necessarily include some amounts that are based on reasonable estimates and
judgments.

The key underlying assumptions and principles are as follows,

➢ We assume the country would overcome the recession and constant growth in the future
with a fixed inflation rate.
➢ We expect a constant sales growth rate of 10% as the success of promotion campaigns.
➢ We assume that there are not any unforeseen changes in technology.
➢ Purchase of inventories and other items is carried out only on a cash basis therefore there
are no trade payables.
➢ The cost of raw materials (prices of the raw material) and other equipment are the same
over the next 3 years.
➢ We were able to obtain a second-hand refrigerator from one of our team members to store
the finished products. The market value of the refrigerator was Rs.80000 and the expected
life will be 30 years.

31
 ➢ We expect to recruit one team member by 2024 and another by 2025. Production will be
taking place only 04 days per month by recruited staff. Per day labour cost will be Rs.2000.
➢ Rent for the production place will be Rs.8000
➢ We expect to buy one pestle and a mortar by 2023 for Rs.12000 & 2 for Rs.24000 by 2024.
At the start of the business, one of the partners provided a pestle and mortar valued at
Rs.8500. Expected lifetime will be 50 years.
➢ No Inventory is carried out as we have close suppliers to supply materials when needed

Table 2. 5 Table General assumptions and details

Description Pure Ink Berry Ink Berry with Ink Berry with Ink Berry with
Product Hibiscus Layer Butterfly Pea Layer Custard Layer

2023 2024 2025 2023 2024 2025 2023 2024 2025 2023 2024 2025

Selling Price per 80 80 80 110 110 110 110 110 110 100 100 100
unit

Cost per unit 52.90 52.90 52.90 78.40 78.40 78.40 78.40 78.40 78.40 78.90 78.90 78.90

Profit Margin 51.23 51.23 51.23 40.31 40.31 40.31 40.31 40.31 40.31 26.74 26.74 26.74
(%)

2.8 Forecasted financial statements

2.8.1 Forecasted income statement

Indigenous Food Suppliers

Income statement
The year ended on 31st March

32
 Years 2023 – 2025
Rs.
Year 01 (2023) Year 02 (2024) Year 03 (2025)

Revenue
Rs.
Sales (Note 01) 1,939,200 2,133,120 2,346,520

(-) Less

Cost of Sales (Note 1,266,240 1,392,864 1,532,206

02)

Gross profit 672,960 740,256 814,314

(-) Expenses (Note

03)

Sales and 110,000 158,200 190,840

distribution

Administration 209,277 306,857 309,057

Primary production 43,186 - -

losses

Total Expenses 362,463 465,057 499,897

Net profit Before 310,497 275,199 314,417

Tax

(-) Taxes (6%) - - -

Net profit 310,497 275,199 314,417

33
2.8.2 Statement of Financial Position

Indigenous Food Suppliers

Statement of financial position
The year ended on 31st March
Years 2023 – 2025 Rs.
Assets

Year 1 (2023) Year 2 (2024) Year 3 (2025)

Rs.

Non-current Assets (Note 05)

Refrigerator 74,667 72,000 69,332

Pestle & mortar 19,920 43,030 42,140

Current Assets

Cash 355,260 623,900 953,874

Total Assets 449,847 738,930 1065,346

Equity & Liabilities

Equity

Member Contribution 40,000 40,000 40,000

34
Capital Reserve 88,500 244,847 236,806

Retained Earnings 310,497 440,199 776,540

Liabilities

Current Liabilities

Accrued Expenses (Note 04) 10,850 13,884 12,000

Total Equity & Liabilities 449,847 738,930 1065,346

2.8.3 Forecasted Cash Flow Statement

Indigenous Food Suppliers

Cash flow statement
The year ended on 31st March
Years 2023 – 2025 Rs.
Year 01 (2023) Year 02 (2024) Year 03 (2025)

Cash Inflow Rs.

Sales Revenue 1,939,200 2,133,120 2,346,520

Total Cash Inflow 1,939,200 2,133,120 2,346,520

35
Cash Outflow

Cost of sales 1,266,240 1,392,864 1,532,206

Selling & Distribution 108,000 153,200 187,840

Administration 197,700 294,416 296,500

Purchase of NCA 12000 24000 -

Total Cash outflow 1,583,940 1,864,480 2,016,546

Change in Cash 355,260 268,640 329,974

Cash at beginning of the year 0 355,260 623,900

Cash at end of the year 355,260 623,900 953,874

2.8.4 Notes for financial statements

Sales (Note 1)
Rs.
Year 1 (2023) Year 2 (2024) Year 3 (2025)

Unit Quantity Total Quantity Total Quantity Total

Rs.
Price Income Income Income

36
Pure Ink Berry 80 3,840 307,200 4,224 337,920 4,647 371,760
Jelly

Ink Berry with 110 4,800 528,000 5,280 580,800 5,808 638,880
Hibiscus layer

Ink Berry with 110 4,800 528,000 5,280 580,800 5,808 638,880
Butterfly pea
layer

Ink Berry with 100 5,760 576,000 6,336 633,600 6,970 697,000
Custard Layer

1,939,200 2,133,120 2,346,520

Cost (Note 2)
Rs.
Year 1 (2023) Year 2 (2024) Year 3 (2025)

Cost of Quantity Total Quantity Total Quantity TotalRs.

sales Cost Cost Cost
per
unit

Pure Ink 45.40 3,840 174,336 4,224 191,770 4,647 210,974

Berry Jelly

Ink Berry 70.90 4,800 340,320 5,280 374,352 5,808 411,787

with

37
 Hibiscus
layer

Ink Berry 70.90 4,800 340,320 5,280 374,352 5,808 411,787

with
Butterfly
pea layer

Ink Berry 71.40 5,760 411,264 6,336 452,390 6,970 497,658

with
Custard
Layer

1,266,240 1,392,864 1,532,206

Expenses (Note 3)

Year 1 (2023) Year 2 (2024) Year 3 (2025)

Selling and Distribution

Promotional 20,000 25,000 30,000

Transportation 90,000 133,200 160,840

110,000 158,200 190,840

38
 Administration

Electricity and water 10,200 10,600 12,000

Rent 96,000 96,000 96,000

Maintenance 4,000 4,700 5,500

Salaries and wages 96,000 192,000 192,000

3,077 3,557 3,557

Depreciation

209,277 306,857 309,057

Accrued expenses (Note 4)

Year 1 (2023) Year 2 (2024) Year 3 (2025)

Selling and Distribution

Accrued promotional 2,000 5,000 3,000

2,000 5,000 3,000

39
 Administration

Accrued Electricity 850 884 1,000

Accrued Rent 8,000 8,000 8,000

8,850 8,884 9,000

Total 10,850 13,884 12,000

Non-Current Assets (Note 05)

Value Depreciation Accumulated Book

Depreciation Value

Year 1 (2023) Refrigerator 80,000 2,667 5334 74,667

Pestle & mortar 20,500 410 580 19,920

40
 Year 2 (2024) Refrigerator 80,000 2,667 8000 72,000

Pestle & mortar 44,500 890 1,470 43,030

Year 3 (2025) Refrigerator 80,000 2,667 10668 69,332

Pestle & mortar 44,500 890 2,360 42,140

SPECIAL ACKNOWLEDGMENT
We express our gratitude to Dr Yasapala Bandara, who is an Ayurvedic doctor. He helped
us from the moment we started making the product. This doctor has helped us from the beginning
by telling us about the properties of Kahipiththan leaves and that we can make a product like this
and we can get a good chance in the market for it. Next, a retired navy officer named Chaminda
Dematagoda helped us. He is currently making new dishes and putting them on the market. He
helped to make the recipe for the product as well as to improve the product. A good service was
given in Anala laboratory to test our product. An uncle named Hemantha helped us. He was the
one who helped us to find Kahipiththan leaves from the beginning. And also, the parents of the
team members helped us a lot. This project will be incomplete without them. Therefore, our team
innovators are very much thankful to them for the support and guidance that provided us to
complete the project.

41
 APPENDICES
Annexure 1: Market survey results

Gender of the respondents' Age of the respondents

Percentage of the respondents who suffer from the following diseases

42
 Percentage of respondents who made
kahipiththan jelly at home

Percentage of respondents who made

kahipiththan jelly at home

Awareness about the jelly products and of Price willing to pay for the product

kahipiththan leaves in the market

Awareness about the jelly products and of Price willing to pay for the product

kahipiththan leaves in the market

The willingness of natural or artificial medicine for

diseases mentioned earlier
43
 Annexure 2: Project’s timeline and summary of the evaluation

21st September 2022 26th October 2022 09th December 2022

EBP Inauguration Peer Evaluations EBP Report Submission

21st September 2022 26th October 2022 09th December 2022

12th October 2022 Peer Evaluations

EBP Inauguration 03rd DecemberEBP
2022Report Submission

OID Presentation E - Demonstration

Timeline of the project

12th October 2022 03rd December 2022

Evaluation Name What Is Required Suggestions And How Did We
OID Presentation
from Us? E - Demonstration Improve?
Comments We

Received
Timeline of the project

Opportunity • Introduction about Although inkberry We have segregated our

the business idea. powder packets are
Identification
already available in the
Discussion (OID)
market, the team is
Presentation • Feasibility of the
changing the products
product.
by offering inkberry
jelly to facilitate instant
consumption for
• Market gap
consumers. Providing
it as an instant product
• SWOT analysis and can be considered a
Porter’s five forces valuable addition.
analysis. Also, look into
products into different
ranges to attract
customers.
Accordingly,
Kahipiththan Set Jelly,
Kahipiththan with
Katarolu Set Jelly,
Kahipiththan with
Hibiscus Set Jelly and
Kahipiththan Set Jelly
with Custard Layer are
our products. How to

44
 packaging, expiration diversify the products,
dates, eating what ingredients are
specifications, approval used for it, how to
requirements, etc. preserve them and the
Overall, the team can packaging used. And
look for more ways to got the knowledge and
differentiate the advice of an Ayurvedic
product and maybe doctor.
even offer different
ranges.

Peer Evaluation • Description of the They said the cost per Worked to measure the
Product. unit must be accurately number of ingredients
measured. As well as needed to make one
obtain certifications or item of each of our
• The comment
laboratory reports from products. Accordingly,
received from the
relevant agencies to we were able to decide
panel.
confirm that the the price of our
product is healthy and products while keeping
has no side effects. a necessary profit
margin. And took
necessary measures to
get a Lab report.

Summary of the evaluation

45
Annexure 3: Posts shared through our official Facebook page

Annexure 4: Awareness posts

46
Annexure 5: Official Facebook page

47
Annexure 6: Physical Evidence- Letter & the Lab report

Approval letter from the medical practitioner

Laboratory report from the Anala lab

48
Annexure 7: production process

49
Annexure 8: Labels of the product range

The labels around the cups

50
Labels on the top of the cups

51
 REFERENCES

Link, M. R. S. (2021, July 8). What Is Butterfly Pea Flower, and Does It Aid Weight Loss?
Healthline. https://www.healthline.com/nutrition/butterfly-pea-flower-benefits

Oguis, G. K. (2019, May 28). Butterfly Pea (Clitoria ternatea), a Cyclotide-Bearing Plant with
Applications in Agriculture and Medicine. Frontiers.
https://www.frontiersin.org/articles/10.3389/fpls.2019.00645/full

Hecht, M. (2017, March 30). Everything You Should Know About Potassium Sorbate. Healthline.
https://www.healthline.com/health/potassium-sorbate

Rthnayake, R., & Profile, V. M. C. (2017, June 17). Cylea peltata/Kehipiththan.

https://herbleplantsrilanka.blogspot.com/2017/06/cylea-peltatakehipiththan.html

Clitoria ternatea (Blue Pea, Butterfly Pea) | North Carolina Extension Gardener Plant Toolbox.
(n.d.). https://plants.ces.ncsu.edu/plants/clitoria-ternatea/

Double Petal Hibiscus Plant (Red Color), Gudhal Double Petal. (2022, October 26). Nursery
Nisarga. https://nurserynisarga.in/product/double-petal-hibiscus-plant-red-color-gudhal-
double-petal/

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