ABusiness Plan on Haat at your home Presented By:Kishan Tank (10F17)Prakash Kava (10F29)Udaysinh Barad (10F37)Viral Gondaliya (10M41)

Presented To:Dr. H. J. Jani

PREFACE This report contains the business plan of fruits and vegetable supply chain. This islike a map. Starting the business without any plan is same as a journey withoutmap or guide. Business plan checks the reality and viability of proposed business.We have tried to justify the project by analyzing the feasibility of business. Thisproject also includes the estimation of future income statements, cash flows andbreak even analysis as well.The object of this project report is to learn how to write business plan and how tocheck the feasibility of proposed business ACKNOWLEDGEMENT It is really a matter of great pleasure for us to undertake & present this creative &practical work, a project report on business development plan.This report has been prepared by keeping in mind various aspects relating tomarket condition, financial feasibility and operational feasibility as well.We undertake this opportunity to express our sincere thanks to Prof.(Dr.) H.J.Jani

(Director, GHPIBM) who has guided us in preparing this report. Wewould like to thank Dr. Swati Mehta, who has guided us at each and every stepwhile developing the business plan. our. Finally, we would like to thank our familyand friends for their support and encouragement. Date:Place : Vallabh Vidyanagar.

Kishan Tank (10F17)

Prakash Kava (10F29)Udaysinh Barad (10F36)Viral Gondaliya (10M41)

G.H.PATEL P.G.INSTITUTE OF BUSINESS MANAGEMENT. Page 5 INTRODUCTION India is the second largest producer of vegetables in the world (ranks next to China) and accounts for about 15% of the worlds production of vegetables. The current production level is over 92 million MT and the total area under vegetablecultivation is around 6.2 million hectares which is about 3% of the total area undercultivation in the country. In case of vegetables, potato, tomato, onion, cabbageand cauliflower account for around 60% of the total vegetable production in thecountry. Vegetables are typically grown in India in field conditions; the concept isopposed to the cultivation of vegetables in green houses as practiced in developedcountries for high yields.India is the second largest producer of fruits & vegetables in the world with anannual production of around 94 million tones. It has the distinction of producingalmost all-tropical and exotic fruits and vegetables because of varied climaticconditions. Due to the short shelf life of these crops, as much as 30-35% of fruitsand vegetables perish during harvest, storage, grading, transport, packaging anddistribution. Only 2% of these crops are processed into value-added products.Hence, there is a need for maximum commercial utilization of fruits and vegetablesand to adapt production and marketing activities to the requirements of the worldmarket and to cater to domestic demand which, over the past few years, has beenincreasing because of various socio-economic factors.Our proposed business is to channelize the fruits and vegetables from the market todirect customers through home delivery with freshness and good quality.

Company Summary: Fresh Mart will be a company which provides fresh fruits and vegetables to thecustomers at reasonable price and at their convenience. The company will beaiming for customer satisfaction and retention rather than on expansion and hugegrowth. The company will be delivering fruits and vegetables at the door of thecustomer. Customers in the western part of ahmedabad city do not have access tothe informal vegetable markets and so, they have to purchase their requiredproduces from the malls and super markets which sell these fruits and vegetables athigher margins. The customer also do not mind to pay the extra price for thequality produce which these retail formats provide. You will find it while standingin the queue at reliance fresh or big bazaar that people are purchasing their fruitsand vegetables for the whole week or for three to four days and are paying bills of more than Rs. 500 for their fruits and vegetable requirements. In this scenario,fresh mart will provide relief to the customers from going and

standing in the longqueues for their requirements. The convenience and quality produce will ensure thecustomers satisfaction and will be the seed for the company development andgrowth. Mission: To become a market leader in fruits and vegetables market in Ahmedabad citywithin 5 years. Objective: 1. To provide qualitative fruits and vegetables to consumers at reasonable price.2. To benefit from eliminating the limitations of existing traditional supply chain.

PRESENT STATUS AND MARKET POTENTIAL:Basic market Information: Currently the majority of the fruits and vegetables market is unorganized.Organized retailers are also there in Ahmadabad city but they would not beforming more than 10% of the total market. Ahmadabad city have wholesale sabjimarket at Kalupur and APMC at Saraspur. Customers of the city expect the qualityproducts at reasonable price. Existing Fruits and vegetables retailers in the area: There are major organized players in this area such as Big Bazaar near ISKONtemple, Star Bazaar at Shiv Ranjani cross road and Reliance Fresh having 3 storesin the area. They pose a strong competition base for the company. Their sales dataduring last year are as follow: Expected Customers and Selected Areas: The customers will be those people who want to spend the quality time with theirfamilies and expect quality fruits and vegetables at their convenience.The company is going to serve the major four areas of the Ahmedabad city Prahalad Nagar, Satellite Area, Bodakdev Area and Thaltej Area. Combined theseareas include around 125000 households. The company is aiming to get 1000customers initially. Annual Market Need: The annual consumption of fruits and vegetables in the Ahmadabad city can beestimated at around Rs. 2000 crores annually.

Scope for Diversification: Fresh Mart has huge scope for diversification in various other products like FMCGand Grains. The company can also go for online business. Fresh Mart also hashuge opportunity for expansion the market base as it will less capital expenditure.Fresh Mart is also planning to procure the fruits and vegetables directly from thefarmers which will open the flood of opportunity for the company for trading with

other organized retail stores, wholesale open market operations and easy expansionfor the home delivery model.Though the company has many diversification opportunities, it will insist more onsticking to the core business of fruits and vegetables business. The company wantsto build a strong brand for the fresh fruits and vegetables. The expansion of thehome delivery model will be the core focus for the company growth andexpansion. Risk Factor: 1.

Fresh Mart will have to strive hard to keep the delivery cost in control.2.

Procurement of the quality products and their quality maintenance whiletransit will also require substantial system and efforts.3.

The price of the fruits and vegetables are very much volatile. Sudden priceincrease may couch on the profit margin of the company. Conclusion: Though there are several competitors in the market of Ahmedabad city, Fresh Martwill be able to achieve success through its core focus on the product quality andhigh level of on time commitment. TYPE OF UNIT & SELECTIONName of the unit: FRESH MART

A Haat at your Home

Name of our unit will be Fresh Mart A haat at your Home because it is the projectwhich helps customers to get the fresh fruits and vegetables at their home. Homedelivery system is one of our competitive edges. The system of home delivery willnot only help the customers but it will also help us to reduce the wastage andefficient purchasing as per the order. Products: Primary product of the company is fruits and vegetables. It will include all theseasonal fruits & vegetables, off season fruits & vegetables. Address: We will be operating in Ahmadabad, Sarkhej-Gandhinagar high way .Type of unit: The fresh Mart will be a partnership firm.The fresh mart will fall under the category of Small Scale industry unit because itsturnover as well as the capital investment in fixed assets is less than Rs. threecrores. Techno economic reasons for site selection: Techno economic factors must be considered before selection of site because it isthe decision which is irrecoverable in nature and it is very hard to change thelocation. There are many reasons for site selection. Our decision of site selection isbased on the following economic reason.Nearness to customer baseEasy for transportationEfficient time management

Location of Warehouse: the warehouse will be located at Sarkhej,Ahmedabad asthe it is located on the SG Highway and near to the customer base. Requirement of land: The basic activity of the Fresh Mart will be to acquire andpack the fresh vegetables and fruits and deliver it. One warehouse will be taken onrent. The goods will be purchased daily and there

will be no any storage.One warehouse of 10000 square feet will be enough for above stated activities. Marketing feasibilityPositioning: Whenever customers need fruits and vegetables, Fresh Mart must come first in their mind first. Fresh Mart will be positioned as the fresh fruits & vegetablesprovider for on time delivery.Fruits like grapes, strawberry, blackberry will be cooled at the assortment centreand then will be delivered. Only qualitative fruits and vegetables will be packedand poor quality fruits and vegetables will be assorted and sold in the wholesalemarket if possible.On time delivery schedule also will be strictly adhered. Drivers will be negativelyreinforced for on time delivery to the customers.Management concentration will be more on existing customer satisfaction andcustomer retention rather than on expansion. Segmentation: Target segment will be upper middle and upper class people living in the targetedarea. Target customers would be those housewives who do not want to movearound for purchasing fruits and vegetables.

Customer Relation: Existing customers would be retained by providing fresh, hygienic and goodquality fruits and vegetables; timely delivery is also highly insisted for highercustomer satisfaction. In case of non delivery of the goods; those goods will bedelivered for free on the next day. The customers will be allowed to change theirorder till 10pm. Competition: Fresh Mart will have competition from Reliance Fresh, Big Bazaar, Star Bazaar,More Retail Store, local fruit & vegetable stores and fruits vendors & vegetablesvenders. Competitive Advantage: Fresh Mart will be able to deliver goods at the customers home. Home Delivery Model has ensured zero cost in real estate; which will help to serve customers atlower/reasonable price. Loyal customer base creation will help for sustainabledevelopment/growth.