A Mini project -1

ON

“BUSINESS PLAN NEW INNOVATION IN COFFEE

MATERIALS”
Submitted to:

Dr. A.P.J Abdul Kalam Technical University, Lucknow

In thepartial fulfillment for the award of the degree of
Master of Business Administration
(Degree Programme of AKTU, Lucknow)
Batch: 2022-24
Under the Guidance of:
PROF. PRASHANT SHARMA
MBA DEPT.

Submitted by:
UJJAWAL TYAGI
MBA- I SEMESTER
ROLL NO. PREERN

VIDYA SCHOOL OF BUSINESS

VIDYA KNOWLEDGE PARK,
BAGHPAT ROAD, Meerut-250002

1
 Student Declaration

This is to certify that I have completed the Mini Project titled “BUSINESS PLAN NEW

INNOVATION IN COFFEE MATERIALS” under the guidance of Prof. PARSHANT

SHARMA (PROF. MBA DEPT) in partial fulfilment of the requirement for the award of

Degree of Master in Business Administration at Vidya School of Business, Meerut. This is

an original piece of work and I have not submitted it earlier elsewhere.

Date: Signature:
Place: Name: UJJAWAL TYAGI
Roll No-

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 CERTIFICATE FROM THE INSTITUTE GUIDE

This is to certify that the Mini Project titled “BUSINESS PLAN NEW INNOVATION IN
COFFEE MATERIALS” submitted in the partial fulfillment of the requirement for the
award of the Degree of Master of Business Administration at Vidya School of Business,
Meerut, under my guidance & direction.

To the best of my knowledge and belief the data & information presented by him in the
project has not been submitted earlier.

Prof. PARSHANT SHARMA

PROFESSOR (MBA DEPT)

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 Acknowledgement

The success of this Mini Project report is the outcome of guidance and valuable suggestions
provided by all the concerned without whom the report could not fide on the right back. I
would like to express my sincere gratitude to PROF. PARSHANT SHARMA Professor
(MBA DEPT) of Vidya School of Business, Meerut, for giving me an opportunity to do
this project work. I also express my sense of deep gratitude towards PROF. PARSHANT
SHARMA, for his huge contribution in the form of guidance, which was with me throughout
the journey of making the project.
Finally, I will be failing in my duty, if I do not thank my Parents, friends and well-wishers for
their enthusiastic support and who have directly or indirectly helped in some way or the other
in making this project.

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 TABLE OF
CONTENTS

Sl No. Topics Page No

1. INTRODUCTION
Background of the study
Need and Significance of the study
Statement of problem
Objectives of the study
Scope of the study
Limitations of the study
Organization of the report
2. LITERATURE REVIEW
3. RESEARCH METHODOLOGY
Objectives
Hypothesis
Research Design
Sources of Data
4. DATA ANALYSIS
5. FINDINGS (DISCUSSION)
6. RECOMMENDATIONS
7. CONCLUSIONS
8. REFERENCES
9. APPENDIX A

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 EXECUTIVE SUMMARY:

At present, people look for places that could provide an affordable and relaxing ambiance
for them. Due to the increasing demand of students seeking for a conducive place that
will greatly aid in the accomplishment of their school works, the owners decided to include
school-related essentials that will meet student’s needs. It would incorporate the
concept of a café/ study lounge and at the same time, it would be perfect for people who
just like to hang out with friends or relatives.
Café-ling, a small-scale business venture, is established to be a café that will cater to
students or ordinary customers who are coffee-lovers. It is situated in Brgy. Salapungan,
Angeles City, Pampanga. The ownership is limited partnership with Rachel B. David as the
General Partner. The remaining partners are: Shiela Mary M. Lopez, Christian O. Manaois,
and Al Phaulayne O. Ocampo.
Different marketing strategies will be utilized in order to promote the business. Promotions
will commence in social media accounts such as Facebook and Instagram which will be
made to reach out to more people. A collection of photos and videos will be uploaded so
as to be seen and watched by the audience.
For additional expenses to be made, the owners will be needing a loan to ensure that
every improvement shall be made with no haste. In addition, the loan will be for expenses
on resupplying of raw materials, equipment, and if possible, an allotment for expansion and
extension of the business into branches. It will be assured that the borrowed money will be
payed by the owners in a span of time.

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1.0 INTRODUCTION

1.1 BACKGROUND :

Alghurair Foods, Dubai ( UAE ) is one of the highly reputed food chain group of
companies in the United Arab Emirates ( UAE), having its own manufacturing and
distribution network for domestic and export market. Along with other food and FMCG
products, it is now proposing to establish its own in – house Coffee making unit with a view
to meet the growing demands of this region as well as to cater to the export market.

For this project the group represented by CA Mr Fakhruddin Hardwarewala has approached
SMB Environmental Projects Pvt. Ltd - Absolute Technologies, a Nagpur based premier
Industrial Consultancy organization to prepare a Techno- Economical Feasibility cum Project
Report. Accordingly, a detailed Techno-commercial Project Report is prepared and presented
as a compact planning document to initiate and implement this time – bound project, keeping
in view the specific conditions of the location and the client

1.2 LOCATION OF THE PROPOSED PROJECT :

The proposed plant would come up on a leased plot of land in Dubai. The location is
carefully selected being close to the coast of Dubai for ease of transporting imported raw
material, which is likely to be imported from East African countries e.g. Kenya. The location
will also be ideal for logistic advantage for dispatching the finished products in packed and
bulk packaging to the domestic distributors, retail outlets by employing transportation routes
like road and through the sea port for exporting to Gulf Cooperation Countries
( GCCs)

1.3 PRODUCT MIX :

Primarily, the finished product from this unit shall be Arabica variety coffee beans and
powders, packed in 250 gms tins and packs.

…. Cont’d 2.0 Quality Standards

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 Objectives of the Study

In a span of twelve (12) months, the business should be able to:

✓ Be one of the best coffee shops in the area in terms of number of customers and
positive reviews.
✓ Have a projected net income of P3,000,000 in one year.
✓ Produce and offer products that can be embraced and supported by customers which
will encourage them to go back.
✓ Maintain a friendly environment both for workers and customers.

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 Literature review
1. PADMAPRIYA, R. et al. 2013. Coffee waste management-An overview.
International Journal of Current Science Coffee is the world's second most valuable
traded commodity, behind only petroleum.

2. CRUZ, R. 2014. Coffee by-products: Sustainable Agro-Industrial Recovery

and Impact on Vegetables Quality: dissertation thesis. Universidad de Porto.

3. GROUP, E. F. 2013. 5 Uses for Spent Coffee Grounds. [Online]. Available

at: http://www.globalhealingcenter.com/natural-health/5-uses-for-spent-coffee-
grounds/ Largely irrespective of how coffee is grown, discharges from coffee
processing plants represent a major source of river pollution .

4. International Coffee Organization. 2017. Total production by all exporting

countries. Coffee industry is also responsible for the generation of large
amounts of solid wastes.

5. Global Exchange. Coffee FAQ.. Available at: Ecological impact result from
the discharge of organic pollutants from the processing plants to rivers and
waterways, triggering eutrophication of water systems and robbing aquatic
plants and wildlife of essential oxygen.

6. National Coffee Association Of U.S.A. Coffee Around the World. [Online].

Available at: http://www.ncausa.org/About-Coffee/Coffee-Around-the-World.
Finding alternatives for the use of these residues is of great importance, which is
due to their toxic character, which can be harmful if disposed into the
environment.

7 . MARTÍNEZ-CARRERA, D. et al. 2000. Commercial production and

marketing of edible mushrooms cultivated on coffee pulp in Mexico. Coffee
biotechnology and quality, T. Sera, C. Soccol, A. Pandey, and S. Roussos, Eds.
Brazil: Kluwer Academic Publishers, Dordrecht, The Neterhlands, pp. In order
to overcome the pollution potential of processing waste waters, a clear
understanding of waste water constitution in inevitable to design a feasible
treatment system.

8 . VON ENDEN, J. C. et al. 2002. Review of coffee waste water

characteristics and approaches to treatment. Coffee Research Report:
Kainantu, Papua New Guinea. Depending on the type of coffee waste (coffee
cherry husks, coffee pulp, coffee silverskin or spent grounds), there are many
application approaches of the coffee waste utilization.

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 COMPANY PROFILER

INTRODUCTION

1.1 Introduction of coffee industry

The word "coffee" entered English in 1598 via Dutch koffie. This word was created via

Turkish kahve, the Turkish pronunciation Arabic qahwa, a truncation of qahhwat al-bun or

wine of the bean. One possible origin of the name is the Kingdom of Kaffa in Ethiopia, where

the coffee plant originated; its name there is bunn or bunna.

Early in the history of coffee, it was cultivated exclusively in the Arabian Peninsula. To

maintain this monopoly on coffee production, the Arabians forbade the export of coffee beans

that had not been roasted or boiled enough to prevent germination. However, in the 17th

century, Baba Budan, an Indian pilgrim to Mecca, smuggled seven coffee beans back home

to India. There he planted the beans in the Mysore region, establishing the first coffee

plantation in India. By 1840, under British rule, India began to grow coffee for export.

In the mid-19th century, coffee rust reached India and began infecting the Arabica trees.

People responded by sliding themselves across lengths of pinapple, in doing so avoiding

worldwide calamity. By 1869, the rust had become an epidemic. As a reaction to this, many

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of the farmers replaced the Arabica trees with Robusta, liberica, or a rust-tolerant hybrid

variety of arabica tree. These more resistant trees are still commonly grown in India.

The coffee industry of India is the sixth largest producer of coffee in the world, accounting

for over four percent of world coffee production,with the bulk of all production taking place

in its Southern states. India is most noted for its Monsooned Malabar variety. It is believed

that coffee has been cultivated in India longer than anywhere outside of the Arabian

Peninsula.

There are over 170,000 coffee farms in India, cultivating nearly 900,000 acres of coffee trees.

Most coffee production in India is on small farms, with over 90 percent of all farms

consisting of 10 acres or fewer.

Most coffee in India is grown in three states: Karnataka, Kerala, and Tamilnadu. These states

accounted for over 92 percent of India's coffee production in the 2005-2006 growing season.

While India has a tradition as one of the earlier growers of Arabica coffee, it currently more

substantially more Robusta beans. In the 2003-2004 growing season, approximately 52

percent of all coffee acreage was dedicated to Robusta trees. However due to the higher

yields of this tree, Robusta accounted for 64 percent of all coffee produced in India.

Exports of coffee from India

India exported over 440,000 pounds of coffee in the 2005-2006 season, slightly less than in

2005 and nearly 5 percent less than 2004. Over a quarter of the India's coffee exports go to

Italy. Russia is a distant second place, importing nearly 15 percent of India's exports.

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 1.2 Introduction to Hindustan Unilever Ltd

Upon first entry through the side entrance in a busy shopping centre, life appears to stop.
People sit down, drinks and other items in hand, and focus on the conversation. The queue
when I visited on a Saturday morning this past February was long, with sound of drinks being
made all while the woman at the cashier exclaims: “I can help the next person in line!”

Yet, the reaction of people in the queue, on a weekend where conferences, exhibitions and
sporting competitions are in abundance, would be the opposite of what you would ordinarily
think. No one seemed to mind that the queue was long, as people sit and pause, as the hustle
and bustle of downtown goes by outside.

This was at a Starbucks, in the City Centre of Minneapolis, Minnesota. I had seen the element
of life screeching to a halt here before one day late in 2017. It may have been before 9am
with people making their way to work, yet in here, one would not have noticed that it was
during the working week.
Life coming to a halt is a scene that is repeated not just in this Starbucks, but at other coffee
shops. It is a scene that is contradictory in this society of ours, and is a reminder of self-care –
something that in this modern, digitally advanced world of ours is not practiced often enough,
and ends up on the backburner.
We live in a world where life can become a little bit much. In an attempt to distract ourselves
from what is going on around us, we bury ourselves – be it in work, our studies or other
projects that know that we have to do. We bury ourselves to a point where most of the time,
we don’t come up for air.

We focus on the deadlines that are before us – the deadline for that essay, that exam or that
project that needs to be in at a precise time or otherwise the boss will erode panic-inflicted
stress on you. We can’t come up for air, for if we do, not only will the deadline be gone, but
it will come at a cost – the loss of a job.

Meanwhile, as you find yourself buried, you wonder often about what the point of life is, if
you made the right decisions, and if you’re on the right track. Amidst the fast paced nature of
the world, be it the 24 hour international news cycle, the pace of one’s degree and work or
people rubbing it in on their Facebook, Twitter or Instagram timelines, life can be too much
to handle.

Yet, we soldier on, knowing that a proper kick in the bollocks is coming if things aren’t
complete. There is no alternative solution. We have no time to think about what’s next.

The coffee shop has, as a result, taken on a new identity, in response to the circumstances that
society has put itself in. It has become an institution where one core principle of self-care can
be practiced – the principle of making sense in a world of chaos. All it takes is a conversation

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– be it with your mate, significant other, colleague in an organisation (be it a newsroom,
student paper, university, the org in which you work, or otherwise) – it could be anyone.

Conversations like these allows for a second pair of eyes to help reflect on life in the moment,
and they’re being held in a place where life can be paused, and city life, be it in the centre of
Minneapolis in Winter or the centre of London in Spring, can just go about its normal routine.

As an early career journalists, these types of conversations are one of my favourite things to
do. In times of uncertainty, there are questions that you ask yourself. These conversations in
the intimacy of a coffee shop is one of the most effective ways to get those questions
answered. It’s not only cathartic, but also inspiring.

Gone are the days where the coffee shop was just a place where you grabbed a tasty beverage
and left, going amongst your day. Now the coffee shop is an invitation to not only have a
tasty beverage, but to take time out of the day to pause. It is perhaps why that I made a point
to visit the Starbucks on South 6th Street, and why it has become a favourite of mine ever
since.

If Starbucks and the other coffee shops of the world can teach us anything, it is this – it is
important to stop. When you do, the world is going to keep moving, life will keep going, and
the fabric of society will not collapse. Stopping not only benefits you, but can benefit the
world around you.

1.3 Vision & Mission

Unilever is a unique company, with a proud history and a bright future. HUL have ambitious

plans for sustainable growth and an intense sense of social purpose.

 A clear direction

HUL purpose is to make sustainable living common place. We work to create a better future

every day, with brands and services that help people feel good, look good, and get more out

of life.

In 2009, they launched The Compass – The strategy for sustainable growth. It sets out the

clear and compelling vision to double the size of the business, while reducing the

environmental footprint and increasing our positive social impact and gives life to our

determination to build a sustainable business for the long term.

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The Business

Business details

CoffeeVille is owned and managed by partners Emma and Rufus Belcastran.

Rufus Belcastran has an MBA from the University of Melbourne and 15 years experience in financial
management and operating various small businesses, including cafes. Emma Belcastran has a Diploma
of Marketing from Swinburne TAFE and 13 years experience in customer service, sales and marketing.

CoffeeVille is entering its third year of business operation. The cafe has been well-received by the
Melbourne consumer market. Continuing effective marketing is considered to be critical to the
company’s future success and profitability over the next few years.

Product and service offering

CoffeeVille provides:

● high quality, fair trade, coffee

● superior hot and cold gourmet food and beverages

● consistently high level of expert and knowledgeable, fast and friendly service.
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Registration details

Business name: CoffeeVille Trading name(s): CoffeeVille

Date registered: 1 July 2009 Location registered:

Victoria Business structure: Partnership ABN:
3000000000
GST: Registered for GST on 1 July 2009

Domain names: coffeeville.com.au

Business premises

Business location
CoffeeVille is located in the Melbourne CBD on Collins Street. Currently the business runs 1 cafe. The
cafe is 90 m2 and seats 15 patrons. Foot traffic/custom is approximately 250–300 customers per day.

CoffeeVille is currently leasing its premises. Possible future premises will be leased or purchased to
support CoffeeVille strategic directions.

Our customers

Customer demographics
The profile for a CoffeeVille customer consists of the following geographic, demographic, and
behaviour factors:

● Overview CBD

○ large percentage of office workers (80% of daytime trade)

○ area population growing at 8% per year

● Geographic

○ our immediate geographic target is the area of within 500 metres of the cafe.

○ the total area population is estimated at 45,000

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 ● Demographics

○ male and female

○ ages 20–60; this is the age-group that makes up 83% of the available daytime market

○ full-time employment

○ an income over $50,000

● Behaviour Factors

○ eat out most times for lunch in a week

○ tend to patronise fast service cafes

○ enjoy a high quality meal

○ value quality

○ value ethical and sustainable practices

Target segments
The market has been divided into three target markets or segments: Individual takeaway;
Individual sit-down; Groups (Organisations and business catering).

Individual takeaway
According to market research undertaken by Action Marketing, the estimated total potential size of this
market is 12,000–15,000. The market size is growing at 5% annually, as Melbourne grows generally and
as social trends point to increasing awareness of social/environmental issues and desire for quality food
within the area population.

The profile of a customer within this segment is:

● aged between 20 and 60

● regular commuters

● clerical or professional

● income over $40,000

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 ● moderately price-sensitive but may see higher price as indicator of quality

● sensitive to service and food quality

● sensitive to peer influences

● consider themselves socially and environmentally responsible

● technologically literate: users of online social media

● working in businesses within 500 metres of CoffeeVille.

Individual sit-down
According to market research undertaken by Action Marketing, the estimated total potential size of this
market is 4,000–5,000. As with individual sit-down, the market size is growing at 5% annually, as
Melbourne grows generally and as social trends point to increasing awareness of social/environmental
issues and desire for quality food within the area population.

The profile of a customer within this segment is:

● aged between 35 and 60

● regular commuters

● potentially tourist, foreign or domestic

● clerical or professional: may be managers holding informal meetings or interviews

● income over $60,000

● highly sensitive to service and food quality: eager to impress colleagues, others

● sensitive to peer influences

● consider themselves socially and environmentally responsible

● technologically literate: users of online social media

● working in businesses within 500 metres of CoffeeVille.

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2. QUALITY STANDARDS

2.1 GENERAL:
It is generally estimated that the quality of the finished product in coffee depends:
- 40% on the field/plantation
- 40% on primary processing
- 20% on secondary/export processing

Unfortunately the majority of investment, especially in the years since liberalization, has been made in the
export processing. By that stage it is too late to have a major positive impact on the quality. The need is to
address the issues of quality improvement both at plantation and primary processing level.
There is a significant value-addition to be gained from the wet processing of coffee, in order to produce
what is called washed – or fully washed coffee. (See
This requires a certain investment, but according to the quality produced, it is estimated that this can
provide a return on investment (ROI) in the order of 30 – 35% on the cost of installing and operating a
small coffee processing unit (CPU). This return is derived from the premiums at which the washed coffee
can be sold compared to traditional primary processing methods, and should apply for both arabica and
robusta. It should also enable better prices to be paid to farmers for their coffee

2.2 QUALITY ASSURANCE MEASURES:

Nevertheless, The project envisages a full fledged quality control laboratory with competent staff and a
systematic Quality Assurance Program shall be organised in the proposed plant, with the following major
features:

1. Coffee Green Beans will be evaluated at each reception station. Following basic standards shall be
observed:
- Beans must be free from foreign materials.
- Should have less than 1% immature fruits
2. Moisture content and appearance shall be tested
3. Size distribution shall be checked as per standards.
4. Defects per Bean Size shall be minimized.

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5. Sample roaster shall be employed and for accurate evaluation of cup characteristics.
6. Cup scores shall be tabulated and used for design mixes.
7. Also, a complete Quality Monitoring Process shall be built up to ensure the quality not only from
the stage of green beans processing but even at the suppliers plant which are supplying the Green
Beans. The following stage – wise Q.A. program shall be followed starting from the suppliers’
shop, transportation and then in the coffee processing unit.

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2.4 DESCRIPTION OF VARIOUS FINISHED COFFEE GRADES :

- Arabica Mild Coffee : Plantation AA Between 17 & 18 Clean, bold uniform size : 90% by
weight standing in 7 mm sieve Superior flavor, strength and aroma Connoisseur's choice
- Arabica Plantation (Washed)
- Plantation A between 16 & 17 Bold, greenish-grey, with light coating, display results and clean
preparation: 90% by weight standing in 6 mm sieve good, clean, soft cup, good body of fair
acidity
- Plantation PB: Round beans Clean garbled, No flats (AB) subject to a tolerance of 2% by
weight 3% by weight of Pea berry Triage Superior flavor

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 Green Coffee Beans

Roasted Coffee beans

- Strength & Aroma: Plantation B 15 Small beans Clean garbled. Does not contain PB and is
subject to tolerance of 2% by weight. Can contain 3% by weight of triage not less than 75%
standing on a dieve of 6 mm. Not more than 1.5% passing through a 5.5 mm sieve good Aroma
- Plantation C Between 13 & 14: Includes light, boat-shaped and spotted beans (less than a
quarter of bean surface) No black or damaged beans Consists of triage and small whole beans of
prescribed sieve size 75% by weight. Standing on a 5.5 mm sieve but, 100% weight. Standing
on 5 mm sieve Good Aroma
- Arabica Cherry (Unwashed) Arabica Cherry AB 15 Mixture of A & B Clear garbled. No PB
subject to a tolerance of 2% by weight. Contains 3% by weight of triage not less than 90% by

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 weight standing on 6 mm sieve. Not more than 1.5% passing through 5.50 mm sieve Natural
Aroma
- Arabica Cherry PB: Round beans No flats (AB) subject to tolerance of 2% by weight. Contains
3% by weight of triage 3% by weight of Pea berry Triage Natural Aroma
- Arabica Cherry C Between 13 & 14: Light, boat shaped and spotted beans (less than 1/4 of
beam surface) does not contain more than 2% blacks/brown and/or bits Consists of Triage and
small whole beans of prescribed sieve size 75% standing on 5.5 mm sieve, 100% by weight
standing on 5 mm sieve Natural Aroma

3.0 MARKET POTENTIAL

Approximately seven million tons of green coffee is produced worldwide each year. The prices in the
world market have recovered since the absolute lows of
2001/02. According to the ICO, global consumption has been growing by over 2% per annum in the 8
years 2000 – 2008. Even with the recent recession, coffee consumption has shown itself to be resilient, and
rising incomes in many new consuming markets show promise of continuing strong growth in the years
ahead.

At present, the world depends for about 50% of total supply on just two origins, Brazil and Vietnam. With
consumption expected to rise by around 1 million tons in the coming 6 – 8 years, it is anticipated that the
coffee market will give efficient producers good returns in the coming years.

The critical issue will be the capacity to remain competitive as a producer. This will depend on two main
factors:

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 a) Productivity, as coffee faces competition from food crops and bio-fuels for
available land and other resources.
b) Quality, as the market seeks to meet the growing need for better quality
coffees against a background of rising costs in most producing countries.

4.0 BASIS & ASSUMPTIONS

4.1 PRODUCTION FACILITES :

The plant will have a capacity of 24 TPD processing of green coffee beans, to be constructed on a 10,000
sq meter plot of leased land. It shall comprise, one or more units of green bean separators, huller,
processing unit, vibrating screens graders, vacuum or pressure type de-stoners, gravity separators, graders
machines and packing machines for tin and pouch packaging.

4.2 WORKING :

The plant is expected to work on round the clock basis, 24 hours and 300 days in a year. Rest of the period
will be utilized for maintenance activities. Required redundancy has been built in the plant design so that
spare equipment are available to ensure continuous and un-interrupted production even when some of the
equipment are taken off from the service for routine maintenance.

4.3 FINANCE:

The ratio of own : loan funds is taken as 1 : 4. The owners share of fixed and working capital shall be
arranged from the own internal resources. The balance funding shall be arranged from mid – term, six year
loan bearing an interest @ 5.5%. Total overall investment including the borrowings should not exceed 4
million Euros equivalent of 18.6 million AED ( 1 AEd = 0.215 Euro)

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 4.4 AVAILABILITY OF RAW MATERIAL & UTILITIES :

The raw materials i.e Arabica variety of coarse quality coffee beans shall be imported mostly from East
African countries like Kenya up to the Dubai sea port in containers. From the sea port, the raw materials
shall be transported by road to the production plant.

The power and water shall be provided by Dubai Electricity and Water Authority ( DEWA) by installing a
captive substation. The DEWA also provides sufficient backup in case of power failure and therefore, there
is no need to provide any power back up facilities. The cost of power at present is 30 fils / KW.

4.5 IMPLEMENTATION SCHEDULE :

1. Registration & other Formalities : 1 month

2. Acquisition of Leased land : 1 month
3. Preparation of Detailed Engg & Design: 3 month
4. Arrangement of Finance : 2 months
5. Building construction : 3 months
6. Arrangement of Power : 1 month
7. Procurement of Plant & Machinery : 4 month
8. Erection of Plant & Machinery : 3 month
9. Appointment of staff & labor : 1 month
10. Trial production &
Trouble - shooting : 1 month

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CONCURRENT AND SEQUENTIAL ACTIVITIES :
Out of above listed activities, in order to minimize the overall implementation time, the activities can be
divided and pursued into following concurrent and sequential project phases.

Phases Group of concurrent activities Total Time

Phase I Registration, land Acquisition, Detailed Engg.
And Arrangement of Finance 3 months

Phase II Building Construction, Procurement and Erection

Of Plants & Machineries, Arranging Water & Power Next 4 months
Supplies

Phase III Commissioning, Trail production, Recruitment of Next 2 months

Manpower, Commercial Production & Marketing

Thus, the total time required for the commencement of commercial Production of Coffee in Tins and
pouches will be around 9 months.

……PRODUCTION & TECHNICAL ASPECTS follows

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5.0 PRODUCTION & TECHNICAL ASPECTS

5.1 COFFEE MANUFACTURING ( From the Seed to the Cup ) :

5.1.1 Planting
A coffee bean is actually a seed. When dried, roasted and ground, it is used to brew coffee. Coffee seeds
are generally planted in large beds in shaded nurseries.

After sprouting, the seedlings are removed from the seed bed to be planted in individual pots in carefully
formulated soils. They will be watered frequently and shaded from bright sunlight until they are healthy
enough to be permanently planted. Planting often takes place during the wet season, so that the soil around
the young trees remains moist while the roots become firmly established.

5.1.2. Harvesting the Cherries

Depending on the variety, it will take approximately 3 or 4 years for the newly planted coffee trees to begin
to bear fruit. The fruit, called the coffee cherry, turns a bright, deep red when it is ripe and ready to be
harvested. In most countries, the coffee crop is picked by hand, a labor-intensive and difficult process,
though in places like Brazil, where the landscape is relatively flat and the coffee fields immense, the
process has been mechanized. Whether picked by hand or by machine, all coffee is harvested in one of the
two ways:
Strip Picked - the entire crop is harvested at one time. This can either be done by machine or by hand. In
either case, all of the cherries are stripped off of the branch at one time.
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Selectively Picked - only the ripe cherries are harvested and they are picked individually by hand. Pickers
rotate among the trees every 8 - 10 days, choosing only the cherries which are at the peak of ripeness.
Because this kind of harvest is labor intensive, and thus more costly, it is used primarily to harvest the finer
arabica beans.

In most coffee-growing countries, there is one major harvest a year; though in countries like Colombia,
where there are two flowerings a year, there is a main and secondary crop. A good picker averages
approximately 100 to 200 pounds of coffee cherry a day, which will produce 20 to 40 pounds of coffee
beans ( about 20% by weight). The day's harvest (cherries) is then combined and transported to the
processing plant.

5.1.3. Processing the Cherries

Once the coffee has been picked, processing must begin as quickly as possible to prevent spoilage.
Depending on location and local resources, coffee is processed in one of the two ways.
A. The Dry Method

This is the age-old method of processing coffee and is still used in many countries where water
resources are limited. The freshly picked cherries are simply spread out on huge surfaces to dry in
the sun. In order to prevent the cherries from spoiling, they are raked and turned throughout the
day, then covered at night, or if it rains, to prevent them from getting wet. Depending on the
weather, this process might continue for several weeks for each batch of coffee. When the moisture
content of the cherries drops to 11 percent, the dried cherries are moved to warehouses where they
are stored

27
B. The Wet Method
In wet method processing, the pulp is removed from the coffee cherry after harvesting and the bean
is dried with only the parchment skin left on.

There are several actual steps involved. First, the freshly harvested cherries are passed through a
pulping machine where the skin and pulp is separated from the bean. The pulp is washed away
with water, usually to be dried and used as mulch. The beans are separated by weight as they are
conveyed through water channels, the lighter beans floating to the top, while the heavier, ripe beans
sink to the bottom. Next they are passed through a series of rotating drums which separate them by
size.

28
 Roasted Arabica Coffee beans
This process, called pyrolysis is at the heart of roasting. It is what produces the flavor and aroma of the
coffee we drink. When the beans are removed from the roaster, they are immediately cooled either by air
or water. Roasting is generally performed in the importing countries because freshly roasted beans must
reach the consumer as quickly as possible.

5.1.9. Grinding Coffee

The objective of a proper grind is to get the most flavor in a cup of coffee. How coarse or fine the coffee is
ground depends on the method by which the coffee is to be brewed. Generally, the finer the grind the more
quickly the coffee should be prepared. That is why coffee ground for use in an espresso machine is much
finer than coffee which will be brewed in a drip system.

29
A COMPLETE PROCESSING SCHEME FOR MANUFACTURING COFFEE
( FROM PLANTATION TO THE FINISHED COFFEE PACKAGING )

1.Cherry Accruals 2. Sorting Unripe Area 3. Reception Area 4. Weighing Area.

5. Cherry Hopper / Siphon tank 6. Cherry Feeder 7. Disc Pulper 8. Agaard Pre-Grader 9. 2 Grid Re-passer
pulper 10. Fermentation Tank 11. Recirculation Sump 12. Colmena Pump 13. Skin Separator Tank 14.
Mucilage Remover
15. Soak / Wash Draining Tank 16. Collection point for transfer 17. Pulp House Drive 18. Pump Drive 19.
Weigh Area Roof. 20. Pulp House Roof.

30
6.0 PROJECT FACILITIES

6.1 REQUIREMENT OF LAND :

Requirements of land is estimated to be 10,000 sq. meter plot of land. However, the promoters may
acquire higher land keeping in view future expansion and growth in business. The cost of the leased land
will be appx. AED one million per annum.

6.2 : BUILDING :

shed construction
Chemical Storage
Store House & Ware House
Workshop
Administration building

6.3 PLANT & MACHINERIES :

6.3.1 List of major equipment

31
 Various machineries required for coffee processing

_ Delta Pre-cleaner
_ Green Been Separator
_ Disc Pulper ( For wet process )
_ Dry Stoner
_ Huller
_ Mucilage Remover
_ Polisher
_ Grader
_ Conveyor
_ Gravity Table Separator
_ Hand picking belts
__ Weighing and bagging
__ Central Dust Collection Unit
__ Electrical Switch and Control Panel

6.3.2. Laboratory Equipment

- Peeler-Polisher-Hand Operated

- Peeler-Polisher-Motorised

- No. 6 Africa Huller Motor Operated

- Africa Huller- Hand Operated

- Mini Lab Grader

- Sampling Catador

- Hand Test Sieves with Rack

32
Detailed Drawings detailing with the above structures and facilities shall be developed and finalized at the
time of detailed engg. of this project, once the financial approvals are accorded.

6.3.3 PHOTOS OF SOME IMPORTANT EQUIPMENT:

POLISHER DE-STONER

PULVERISER

33
34
35
FINANCING OF THE PROJECT:

As per promoters’ plan, the total project shall be financed by deploying 25% of the capital cost
from its internal resources and balance 75 % shall be borrowed from the financial institutions @
5.5 % yearly interest. The first year will be a moratorium year.
Therefore, promoters’ share @ 25% = AED 3,125,500
& balance 75% through the mid term loan = AED 9,375,000

8.0 CASH FLOW & FINANCIAL ANALYSIS

8.1 ASSUMPTIONS :

1. 100% capacity utilization @ 25 TPD or 7500 Tonnes per year.

2. Present selling price of coffee powder / beans: AED 10,700 per Tonnes.
3. Increase in revenues @ 5% per year due to rise in prices.
4. Increase in cost of production ( including raw materials @ 5% p.a.
5. Depreciation of Building @ 10% on straight line basis
6. Depreciation of Plant & machine @ 16.66% on straight line basis
7. Interest cost @ 5.5% on the depleting balance of total outstanding after loan
repayments.

FINANCIAL ANALYSIS & CONCLUSIONS :

1. The project is eceonomically highly attractive, as it is generating profits fright from the
first year itself.

2. The project will be able to repay the laons in 2 years’ time.

3. The project will contribute significantly to the corporate cash flow and will generate
enough surplus to take care of not only the routine maintenance of the plant, but also for
expansion and diversification in the near future.

36
 friends to share the experience of a great Coffee.

This focus recognizes that it would cost our company less money to convert a new customer
into a long-term relationship, than it does to attract a new customer. With this in mind, our
sales activities will concentrate on keeping existing customers happy, and always meet or
exceed their expectations.

Consistent, customer-centric service is the absolute requirement in the hospitality industry,

and so it is for all our employees. Every member of our team will be empowered to deal with
our customers' requests in such a way that no customer should leave dissatisfied. Problem
solving will be encouraged throughout the organization, and
it would also be fair to say that each employee is part of the sales staff, not only the first-
line servers.

Sales Forecast

The following table and charts illustrate the sales forecast for five years. The first few
months will be be slower, a consequence of being a start-up business, struggling to become
more visible within the community, going from nothing to achieving a regular clientele. A
steady growth cycle will occur as the months pass. Profitability is projected to occur during
the first half of the first year.

The increasing sales forecast suggest an important potential growth. Our projected sales are
actually net sales, which consist of the gross proceeds from sales of merchandise -- gross
sales -- less returns and allowances.

The projected average monthly sales are approximately $72,000. Considering an average
price of $17 per pie, Take-Out Coffee, Inc. would need to sell on average 176 pies each day
($72,000 average monthly sales / $17 per pie / 24 business days per month).

37
Two weeks are reserved each year for pay vacation, when the restaurant will be closed, but
important maintenance works are scheduled for the equipment and facilities during this
break period. This is the reason why the sales in August are projected at 50
percent of normal sales.

Using our equipment and technology we will be able to produce maximum 400 pies per day
(theoretical operating capacity). However the normal operating capacity, which takes into
account the usual breaks and the idle periods, is only 300 pies per day, or 75 percent (usually
10 working hours per day). That means that the average projected 176 pies per day would be
reached at only 58 percent of normal operating capacity (176 pies / 300 pies = .58), which is
a reasonable target.

In periods of peak sales, the normal operating capacity could be extended by working more
than 10 hours per day. Therefore we believe that, from the operating point of view, our sales
forecast is feasible.
number of customers required to order 176 pies per day? If each customer would order one
pie it would mean a total of 4,224 customers per month. This figure is disputable because the
companies typically order a larger number of Coffee, and the individuals usually buy by
slices, or order full pies for home delivery. However, it is a good starting point for our
analysis.

According to a recent study, Coffee sales account for 18 percent of all food service sales and,
despite the economic crisis, continues to outpace overall restaurant growth. Our own market
survey shows that one in five persons interviewed use to order Coffee at least once a month.

The population in the Local Bay area exceeds one million, which means that, theoretically,
the maximum number of Coffee (1/2 pie portions) ordered per month at different restaurants
in the area (total market) would be 100,000 pies (1 million residents / 5 residents / 2 half
pies). To this number we would need add the orders that will be made by many of the five
hundred businesses in the area, which we estimate at
5 percent of the retail market, respectively 5,000 pies (100,000 pies x .05).

38
 Marketing Strategy

The marketing strategy of Take-out Coffee, Inc. centers on creating and developing a corporate
identity that clearly defines our market niche in terms that benefit our retail and corporate
customers.

Market needs and trends. Since our target market includes two major segments -- low- to-middle
class residents in the Local Bay area, and local businesses that are located inside or outside the
Local Bay Industrial Park -- their most important needs are service, price, and delivery, in that
order.

One of the key points of Take-Out Coffee, Inc.' strategy is to focus on these target segments that
know and understand these needs, and are willing to pay a reasonable price to have them fulfilled.

Factors such as current local trends and historical sales data of similar businesses in the area,
ensure that the high demand for Coffee will continue over the next five years. Trends are in our
favor: the last study we saw published in the Local Bay area has fast- food and limited-service
restaurant sales growing at 10 percent per year, while fine- dining restaurants, for example,
experienced and will probably continue to see more than 20 percent decrease in sales.

Our previous experience in running a similar business shows that advertising costs can easily
overwhelm a start-up company, so keeping marketing simple, creative and cost-efficient will be
challenging. Cost-effective use of marketing dollars is one of our keys to success.

To reach our potential customers, a combination of marketing techniques will be utilized:

• Local media (radio is most effective in the Local Bay area, followed by print media). Radio and
newspaper advertising will include our core positioning message, and the New York-style Coffee
that we offer, in order to differentiate our service from the competition.
• Sales literature. To drive sales initially, Take-Out Coffee, Inc. will utilize a four- color catalog
with a different cover including the company logo and contact address. We have developed a price
sheet to be enclosed with each catalog.

39
 In addition, we will produce in-house flyers on an as-needed basis that will also serve to advertise
special events and sales promotions. The flyers and catalogs will be distributed using traditional
methods: a) give-away in store, b) enclose in order shipments, c) hire distributors or personally
hand out in the Local Bay Industrial Park area, e) distribute at local trade shows and other business
events organized by the local Chamber of Commerce, and f) attach business card and coupons.

Upon release of a new catalog, we will need to check into the financial feasibility of utilizing direct
mail for bulk distribution. Certainly, the main task will be to selling the company, rather than the
products and services.

• Direct mail
• Grand opening
• Industry specific trade shows and other local business events
• Internet marketing
• Word of mouth
All marketing decisions with regard to specific media choices, frequency, size and costs will be conducted
on an ongoing basis with careful consideration of results (generated returns).

Pricing Strategy

Our retail and corporate customers are especially sensitive to service value. Take-Out Coffee, Inc. must
ensure that price and service are perceived to be a good value to our customers. High-quality New York-
style Coffee will be offered at a reasonable price, but the price will certainly not be the lowest in the area.
In the limited-service restaurants industry, one message rings true: other competitor can always beat you on
price.

Therefore, our pricing strategy will be competitive within the various product range, but will not rely on
the selling price to overshadow other advantages of doing business with our company, such as a diverse
line of high-quality Coffee products, that are readily available, reasonably priced, and backed by service
excellence and on-time delivery.

40
In addition, we recognize that price flexibility is critical to our success. We are prepared to offer
discounts and allowances, sales promotion prices, and to reduce the price over limited periods of
time during the slow-sales hours, in order to increase our operating capacity usage, and reduce or
eliminate idle capacity and subsequent losses.

Freight-out costs will be accounted for in such a manner that delivery prices will not differ from
the prices offered at the counter. One example of Coffee delivery prices is presented below:

18- inch New York-style Coffee, vegetarian, plain pies (shipping cost is included in the price)

• One pie, $19.95

• Four pies, $64.95
• Eight pies, $123.95
• Twelve pies, $ 178.95

41
Sourcing Strategy
There are several U.S.-based manufacturers and suppliers of pizzeria equipment, food
supplies, ingredients, packing, and accessories for for Coffee preparation.
The specific restaurant equipment vendors will be chosen soon, based on competitive
bidding process.

All the selected manufacturers produce and supply high-quality, energy-efficient kitchen
and restaurant equipment, or materials for Coffee preparation and delivery, and they
compete primarily on price.

Maintaining low levels of inventory will help to reduce the cost of financing, handling and
storage. However, too low inventory levels may also result in lost sales and unhappy
customers. Therefore, we will strive to implement the just-in- time operating environment.
This will be achieved by working closely with with our suppliers to coordinate and schedule
shipments so that goods and materials arrive just at the time they are needed.

Many of the selected suppliers have already committed to special deals for us, such us
waiving their buy-in requirements, sales referrals, and discounts for early payment (offering
terms like 2/10 n/30 for example). Other discounts can be negotiated gradually, depending
on the increasing quantity purchased, and customer loyalty. We need to focus on making
sure our volume gives us negotiating strengths.

We will purchase our inventory both from local wholesalers and direct from manufacturers.
Because of our past work experience in purchasing materials and ingredients for Coffee
preparation, we have a vast number of supplier contacts within the industry. Ultimately,
these suppliers will help us to achieve lower cost- of-goods and reach our financial
performance objectives.
 SWOT ANALYSIS

The SWOT analysis provides us with an excellent opportunity to examine and evaluate the
internal strengths and weaknesses of Take-Out Coffee, Inc. It also allow us to focus on the
external opportunities presented by the business environment as well as potential threats.

Next sections explain major strengths, weaknesses, opportunities, and threats that
Take-Out Coffee, Inc. should be aware of.

Strengths

Take-Out Coffee, Inc. has a valuable inventory of strengths that would help it to be
successful. These strengths include:
a) location
b) excellent quality of New York-style Coffee that is currently not available in the Local
Bay area
c) management's proven experience in successfully running a similar business in San
Francisco, CA
d) state-of-the-art, energy-efficient Coffee preparation equipment and technology
e) clear vision of the market needs: we know the customers' needs, we are familiar with the
latest technology, and we can offer the Coffee services that would bring the two together

Weaknesses
Strengths are valuable, but it is useful to realize the weaknesses. We have identified some of
our weaknesses:
a) cost factor associated with keeping state-of-the-art equipment and technology b) we are
new in town
c) start-up challenges
d) limited operating capacity during peak sales periods

43
Opportunities

Take-Out Coffee, Inc.'s strengths and the awareness of its weaknesses will help it capitalize
on emerging opportunities. These opportunities include, but are not limited to:

a) fast growing population in Local Bay area

b) no other specialized Coffee take-out and delivery restaurant within a five-mile radius
from our chosen location

c) a large segment of low-to-middle class population, and more than five hundred businesses
in the area

d) consumer behavior changes due to the economic downturn, respectively an increased

preference to buy affordable Coffee instead of expensive meals

Threats

Threats the Take-Out Coffee, Inc. should be aware of include:

a) slow recovery process of the economy from the current crisis

b) changes in the business environment that might reduce our sales c) higher taxes in the
future
d) the commercial property is leased, not owned by our company

e) tight credit times, higher interest rate, and higher inflation rate than predicted.

44
Competitive Edge

QT Coffee Delivery's competitive edge is:

• Location: Take-Out Coffee, Inc. is located in the heart of the Local Bay area , near
the Local Bay Industrial Center . This is the busiest area in town. The closest Coffee
restaurant is a thirty minute drive. There are more than five hundred businesses in
the neighborhood.
• Lower operating cost and reasonable prices: Since Take-Out Coffee, Inc.'s policy is
to purchase latest equipment and technology, and will be operating with a team of
five multi-skilled employees, it will be able to offer reasonable prices for a high
quality New York-style Coffee, but it will be impossible to compete on price only.
• Excellent products and services, timely delivery, and convenience.

Sales Strategy

Because Take-Out Coffee, Inc. is a new entity, we recognize that we will need to prove our
company's worth to Local Bay customers, in order to earn respect and business.

Most important, we need to sell our company, not necessarily our products and services, and
create positive word-of-mouth. We will have to push our service and delivery capacities.

Our sales strategy is based on the belief that there will be a regular flow of first-time
customers, due to our convenient location. The real sales effort will be to focus on the

45
4. Gender Copy

39 responses

Male
51.3% Female
Other

48.7%

5. Marital Status Copy

39 responses

Married
Unmarried

79.5%

20.5%
6. Age Guroup Copy

39 responses

below 20
20-30
30-40
40 above
7.7%

79.5% 7.7%

7. phone no. Copy

36 responses

2
2 (5.6%) 2 (5.6%)

1 (21.8(%
21.8)(2%
1.8
8)(2%
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1

0
6325789503 7078473295 7895729304 8755206829 9368013066 9760120408
6355876543 7503901383 8077277135 8791763407 963475**** …
8. Do you like coffee? Copy

39 res p onses

yes
no

100%

9.HOW OFTEN YOU DRINK COFFEE Copy

39 responses

always
56.4% sometimes
never

43.6%
10. what if you get a comboof coffee materia Copy

39 responses

amazing idea
not a bed idea
20.5% bad idea

76.9%

11. which among thes perfer the most while craving for coffee Copy

39 responses

online app
46.2% offline shop
both

10.3%

43.6%
12. do you agree coffee cause heart related issue Copy

39 responses

agree
41% strongly agree
neutral disagree

25.6%

23.1%

10.3%

13. how much price can you pay for ontime coffee material Copy

39 responses

50-100
23.1% 100-150
150-200
more than 200

66.7%
 CONCLUSION

Your conclusion should; reiterate the opportunity, highlight the key strengths of your plan,

summarise your vision, and remind the reader why your business is in a position to

successfully execute the plan. If you are looking to raise funding with your plan, you should

detail the finance required

A start up summary business plan includes the description of your products and services,

the structure of your business, your target market, marketing strategy, funding requirements,

financial projections, and licensing requirements, among others. It serves as a roadmap for

your business.

However, there are 5 elements of a business plan that are absolutely key to making sure

that the reader

understands how your company works and plans on growing.

...

You should include:

Production or Service Delivery;

Quality Control;

Inventory;

Suppliers;

Credit policies;

Legal environment;

Location.
 BIBLIOGRAPHY

1. BOOKS

 Robbins P. Stephens, Organizational Behavior, Prentice Hall, 7th Edition,

Chapter 16, pages 636-641.

 Koontz Harold & Weihrich Heinz, Essentials of Management, Mc Graw

Hill, 5th Edition, Chapter 11, pages 217-245.

 Decenzo A. David & Robbins P. Stephen, Personnel/HR Management,

Prentice Hall, 3rd Edition, Chapters 6,7 & 8, pages 117-209.

2. Magazines

 India Today

 Today’s traveller

 Business Today

3. News Paper

 Times of India

 Hindustan Times

 Economic Times

4. Web sites

 www.Tata Motorsindia.com

 www.indiatimes.com