BUSINESS PLAN:

Commercialization of value added products

of Mahua plants

STATE- Chhattisgarh
DISTRICT- Bijapur
 Demography
Name of the General Info Unit Details of the General Info Unit

1. District Formation Date 01-05-2007

2. Location – Latitude 18.8608° N

3. Location – Longitude 80.7214° E

4. Languages 6 (Gondi,Halbi,
Telgu,Dorli,Hindi,Marathi)
5. Total Area 6562.48 Sq. Km

6. Revenue village/ Total No. of 584/699 Villages

Villages
7. Total Population 2,55,230

8. Male 1,28,663

9. Female 1,26,567

11. Population Density 39/Sq. Km

13. Literacy Rate 40.90 %

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 Demand & supply of
Mahua plant
 75% of the tribal households in our country are
engaged in Mahua flower collection
 Mahua flower is one of the top five minor forest
produces in the country
 The effective collection days per household at 20
days in a season
 On an average, one family member manages to
collect 10 to 15 kgs of Mahua
 A tree has an annual average yield of 62.5 kg of
flower and 59 kg of gully as per one study
 Mahua is in demand throughout the year locally in
Chhattisgarh. It has high demand in Ranchi as
well as in the neighborhood states of Madhya
Pradesh and Chhattisgarh
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 List of utilities of the product
and their usage in industries
Usage in Pharma industry
Product Use
Flower Juice High protein tonic
Roasted Flowers Cure cough and bronchitis
Flowers fried in ghee Cure piles acting as a cooling agent
Raw flowers Increases lactation

Usage in Food industry

Product Use
Juice Concentrates Sweetener in bakery and confectionary
Mahua Jam and Jelly Dessert
Citric Acid Flavouring agent
Antioxidant rich beverage Health Benefits
 Migration Information

“
According to 2001 census, the population of Chhattisgarh was
17,614,928 out of which out migration was 444,679.
According to a report by Economic Times, provisions have
made for 3 lakh migrant workers to send them back to their
states from Maharashtra.
Chhattisgarh government has estimated the inflow of migrant
workers to be of 1.7 lakhs. The majority of workers are blue
collar workers

5

Pharma industry
Strengths:
1.People are becoming health
conscious
2.Pharma industry is seeing a
boom
3.Ayurvedic medicines are
preferred for zero side effects
Opportunities:
1.Market Expansion beyond
the district or state
2.Make a place in pharma
industry in this pandemic
times
SWOT analysis
Weakness:
1.Limited supply of flowers
2.Less technological
advancements
Threats:
1.Competitors in the market
2.Difficulty to acquire raw
material as majority goes for
country alcohol production
Food Industry
Strengths:
1.The prices are very cheap
2.Multiple products with
almost same raw material
3.Can be made very easily
Opportunities:
1.Market Expansion beyond
the district or state
2.Can be preferred over
chemically made products
Weakness:
1.Limited supply of flowers
2.Less technological
advancements
Threats:
1.Competitors in the market
2.Difficulty to acquire raw
material as majority goes for
country alcohol production
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PESTEL analysis
Pharma Industry

• Growing political focus and pressure on healthcare

Political •Insurance sector boom in healthcare
Factors • Increase pressure on pricing

•Global economic crisis

Economic • Reduction in individual disposable income
Factors • Increase in number of buyers putting pressure on buyers

•Patient awareness is too high leading to high expectations

• More focus on customer service
Social
Factors • More price transparency

•Rapid develpoment in technologies

Technologi •Customized treatments
cal Factors •New digital opportunities

•Identify eco-opportunities in market

Environme •Look after carbon footprint reduction
nt Factors •Environment protection against degradation

• Quality check
Legal • Inconsistent markets
Factors • Increased litigation 7
PESTEL analysis
Food Industry

• Wide regulation pertaining to cleanliness at production place

Political • Maintaining specific standards for storage and transportation
Factors

•Global economic crisis

Economic • Reduction in individual disposal income
Factors

•Health consciousness is increased

Social • Dietary restrictions
Factors

Technolog •Rapid develpoment in technologies

ical •New digital opportunities
Factors

• Identify eco-opportunities in market

Environme • Look after carbon footprint reduction
nt Factors •Environment protection against degradation

• Quality check
Legal •Increased litigation
Factors •Meet safety standards
8
 Mahua Jam and Jelly
A sugar syrup from dry
and fresh Mahua flowers
USP acts as a sweetening agent
used to make jams and
jellies.

Natural and healthy. Product details

Vocal for local.
Cheap price but priceless Sweetener
benefits. Mahua can be used as a
natural sweetening
agent as it has a high
reducing sugar and
nutrient content.
High protein tonic
The tonic is made by
mixing powder of flowers
with ghee and honey &
used to treat acute and
chronic tonsillitis,
rakthpitta etc.

9
 Supply chain
Forest Department, NGOs and Credit Institutions
Conservation,credit,training and other support

Tribes
Collection and drying

Mandi
Sell to end users of Mahua

Buyers(Us)
Buy Mahua and produce our end products

Retailer
Buy from us and sell it in the retail market 10
 Strategy and growth plan
90% of Mahua plant usage is to make country alcohol and only 10% is used to make the rest of the
products that too only locally. We have a great chance to expand the market commercially beyond the
local regions.
The effect of liquid consumption using Mahua in tribal society as well as locals is often debated and
Mahua is associated with something bad. This will help us to create a good potential for establishing
the market for non alcoholic products of Mahua.
One of the major problems is the limitation of Mahua plants. We can play a vital role in enhancing its
production by advising NGOs and Forest Department to use NREGA funds in order to plant more
trees on private and public lands.
Also, another issue is that of its storage. Most of the plants goes into waste because they cannot be
stored and preserved properly. We can ask the NGOs and government organisations to provide proper
storage facilities to the tribes so that the plant do not get wasted. As our government has asked
everyone to use local products, we will have great amount of buying hands.
Due to increase in number of health conscious people especially after this pandemic, people will
prefer natural products more over the chemically-driven ones.
No one has attempted to commercialize the value added products of Mahua plant before and we will
be the first ones to explore the market potential of the products.
11
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 Organization Structure

Owner

Operational Financial
Manager Marketing Manager Manager

Production Inventory Advertisiting Sales Accounting

Manager Manager Manager Manager Manager

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 Operational Plan
Purchase of raw materials (Inventory manager)

Cash outflow (Accounting Manager)

Receipt/Storage(Inventory Manager)

Preparation(Production Manager)

Food Testing(Operational Manager)

Waste Management(Operational Manager)

Packaging(Production Manager)

Dispatch(Sales Manager)

Distribution(Sales Manager)

Cash Inflow(Accounting Manager)

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 Financial Plan
Cost of investment:
Total – Rs.( 5,97,970 + 1,02,030 (miscellenous)) = Rs. 7,00,000

Profit: Returns:
Product Name Quantity(per Selling Price
Particulars Amount
day)
Sales revenue 510000
(-)COGS 146970 Mahua Jam 25 Rs. 50
Gross Profit 363030 Mahua Jelly 25 Rs. 120
(-)Operating Expenses   Mahua Protein 50 Rs. 180
1.Salary Expense 136000 Tonic
3.Rent Expense 8000 Mahua Sweetener 25 Rs. 150
4.Depreciation Expense 3068.75

5.Amortization Expense 1,333.33

6.Electricity 24,000
Total revenue per month - Rs.
7.Marketing 5,500 5,10,000
Operating Profit 1,85,128

(-)Tax(30%) 55,538.4
(-)Interest(15% for 5 years) 12,371

Net Profit 1,17,219

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 Risk Mitigation Plan
1. Availability of Mahua plants:
Unsustainable harvesting and environmentally degrading practices while collection of
Mahua. Absence of quality standards and non-adherence to quality .
Training should be given to the tribes for sustainable harvesting and of proper practices to be
followed for Mahua collection.
Lack of storage facilities lead to unavailability of Mahua plant throughout the year.
More storage facilities should be provided locally by government or private players to store
Mahua and prevent it from wastage.
Plantation of Mahua trees are not encouraged leading to depletion of available resources.
More plantation for Mahua trees should be encouraged by forest departments.
 
2.Perishibality of finished goods:
The lifetime for food products is 6 months. So, quick sales are required.
Quick sales of finished goods should be encouraged. Proper inventory management should be
undertaken. Produce neither less nor more. Gain optimization using sales history and future
demands. 16
￮  
Thanks!

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