A

MINI PROJECT REPORT

ON

Business Plan on
MINI MART
“GRAB THE FRESHNESS”

Dr A P J Abdul Kalam Technical University, Lucknow

In the partial fulfillment of the requirement for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
(2021-2022)

Under the guidance of: Submitted By:

Ms. Yatika Rastogi NIKITA TYAGI
Assistant Professor M.B. A- Ist Sem.
Roll No.–

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 Raj Kumar Goel Institute of Technology
(ISO: 9001: 2015 Certified)
5th KM. STONE, DELHI-MEERUT ROAD, GHAZIABAD (U.P)-201003
Department of Management Studies

Date: ……………….

TO WHOM SOEVER IT MAY CONCERN

This is to certify that Ms. NIKITA TYAGI / Mr. BRIJPAL TYAGI is a bonafide student of MBA

1st year of this institute for the session 2021-2022 and she prepared Mini Project Report titled

Landscaping Business, for partial fulfillment of Master of Business Administration (MBA)

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

I wish her all the best for her future endeavors.

Ms. Yatika Rastogi Dr. Vibhuti Tyagi

Assistant Professor Professor and Head
(Department of Management Studies)

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 DECLARATION

I Nikita Tyagi D/o Mr. BRIJPAL TYAGI am pursuing Master of Business

Administration (MBA) 1st year from Raj Kumar Goel Institute of Technology,
Ghaziabad in the session 2020-21 I hereby declare that this Mini project report titled
“Mini Mart ” is the outcome of my own effort under the guidance of Ms. Yatika
Rastogi, designation. The entire project is my original creation. In case of any
discrepancy, I will be solely responsible for it and institute has the right to cancel my
project.

Date: ………………… Sign with Full Name

Place: RKGIT, Ghaziabad Roll. No:

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 ACKNOWLEDGEMENT
Mini project is a bridge connecting the educational qualification and professional use. It is

the path leading to success by innovative ideas and experienced practical knowledge without fear

and failure.

It gives me immense pleasure to take the opportunity to remember and thanks the

personalities who have involved with this project work. I express my sincere thanks and deep

gratitude who are directly and indirectly associated in completion of this project.

I would like to thank to Ms. Yatika Rastogi Assistant Professor of Raj Kumar Institute of

Technology for assigning an extremely challenging project thereby giving unique opportunity to

meaningful contribution of such growing and vibrant organization, guiding throughout the project,

without her help the project would have not added enough value. I am extremely grateful for the

time she spent from her busy schedule.

NIKITA TYAGI

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 Table of content

Sr.No. Particulars Page no.

1 INTRODUCTION 1-6
2 PRESENT STATUS & MARKET POTENTIAL 7-8
4 TYPE OF UNIT & SITE SELECTION 9-11
5 COST OF PROJECT 12
6 MEANS OF FINANCE 13
7 PRELIMINARY EXPENSES 14
8 OPERATION PROCESS 15
9 FACILITIES REQUIRED 16
10 MANPOWER REQUIREMENT 17
11 UTILITIES 18
12 ADMINISTRATIVE EXPENSES 19-21
13 PROJECTED INCOME STATEMENT 22-23
14 PROJECTED CASH FLOWS 24
15 BREAK EVEN ANALYSIS 24-26
16 PROJECT IMPLEMENTATION SCHEDULE 27
17 Marketing Strattegy
18 CONCLUSION 28

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 INTRODUCTION

India is the second largest producer of vegetables in the world (ranks next to
China) and accounts for about 15% of the world’s production of vegetables. The
current production level is over 92 million MT and the total area under vegetable
cultivation is around 6.2 million hectares which is about 3% of the total area under
cultivation in the country. In case of vegetables, potato, tomato, onion, cabbage
and cauliflower account for around 60% of the total vegetable production in the
country. Vegetables are typically grown in India in field conditions; the concept is
opposed to the cultivation of vegetables in green houses as practiced in developed
countries for high yields.
India is the second largest producer of fruits & vegetables in the world with
an annual production of around 94 million tones. It has the distinction of producing
almost all-tropical and exotic fruits and vegetables because of varied climatic
conditions. Due to the short shelf life of these crops, as much as 30-35% of fruits and
vegetables perish during harvest, storage, grading, transport, packaging and
distribution. Only 2% of these crops are processed into value-added products.
Hence, there is a need for maximum commercial utilization of fruits and vegetables
and to adapt production and marketing activities to the requirements of the world
market and to cater to domestic demand which, over the past few years, has been
increasing because of various socio-economic factors.
Our proposed business is to channelize the fruits and vegetables from the market to
direct customers through home delivery with freshness and good quality.

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Company Summary:

Mini Mart will be a company which provides fresh fruits and vegetables to
the customers at reasonable price and at their convenience. The company will
be aiming for customer satisfaction and retention rather than on expansion and huge
growth. The company will be delivering fruits and vegetables at the door of the
customer. Customers in the western part of Ghaziabad city do not have access to the
informal vegetable markets and so, they have to purchase their required
produces from the malls and super markets which sell these fruits and vegetables at
higher margins. The customer also do not mind to pay the extra price for
the quality produce which these retail formats provide. You will find it while
standing in the queue at reliance fresh or big bazaar that people are purchasing their
fruits and vegetables for the whole week or for three to four days and are paying
bills of more than Rs. 500 for their fruits and vegetable requirements. In this
scenario, Mini Mart will provide relief to the customers from going and standing in
the long queues for their requirements. The convenience and quality produce will
ensure the customers satisfaction and will be the seed for the company
development and growth.

Mission:

To become a market leader in fruits and vegetables market in Ghaziabad city

within 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.

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 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 Ghaziabad city but they would not be
forming more than 10% of the total market. Ghaziabad city have wholesale sabji
market at Lal Bagh sabji Market. Customers of the city expect the quality products at
reasonable price.

Existing Fruits and vegetables retailers in the area:

There are major organized players in this area such as Big Bazaar and Reliance
Fresh having 3 stores in the area. They pose a strong competition base for the
company. Their sales data during last year are as follow:

Expected Customers and Selected Areas:

The customers will be those people who want to spend the quality time with their
families and expect quality fruits and vegetables at their convenience.
The company is going to serve the major four areas of the Ghaziabad city –
Raj Nagar,Indrapuram,Vaishali, Govindpuam.Combined these areas include around
125000 households. The company is aiming to get 1000 customers initially.
Annual Market Need:
The annual consumption of fruits and vegetables in the Ghaziabad city can be
estimated at around Rs. 2000 crores annually.

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Scope for Diversification:
Mini Mart has huge scope for diversification in various other products like FMCG
and Grains. The company can also go for online business. Mini Mart also has huge
opportunity for expansion the market base as it will have less capital expenditure.
Mini Mart is also planning to procure the fruits and vegetables directly from the
farmers which will open the flood of opportunity for the company for Trading with
other organized retail stores, wholesale open market operations and easy expansion
for the home delivery model.

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 Though the company has many diversification opportunities, it will insist more on
sticking to the core business of fruits and vegetables business. The company wants
to build a strong brand for the fresh fruits and vegetables. The expansion of the
home delivery model will be the core focus for the company growth and
expansion.

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

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

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 MARKETING STREATEGY

PRODUCT
India is the second largest producer of fruits & vegetables in the world with an
annual production of around 94 million tones. It has the distinction of producing
almost all-tropical and exotic fruits and vegetables because of varied climatic
conditions. Due to the short shelf life of these crops, as much as 30-35% of fruits and
vegetables perish during harvest, storage, grading, transport, packaging and
distribution.
PRICE
VEGETABLE – 145 Per packet (Approx)

FRIUTS – 130 Per Packet (Approx)

PLACE
A-109
INDRAPURAM GHAZIABAD 201001

PROMOTION
NEWPAPER
PRINT MEDIA
ADVERTISMENT THROUGH WEBSITE

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 TYPE OF UNIT & SELECTION

Name of the unit: MINI MART – Grab the freshness

Name of our unit will be Mini Mart –Grab the freshness because it is the project
which helps customers to get the fresh fruits and vegetables at their home. Home
delivery system is one of our competitive edges. The system of home delivery will
not only help the customers but it will also help us to reduce the wastage
and efficient purchasing as per the order.

Products:

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

Type of unit:

The Mini Mart will be a partnership firm.

The Mini Mart will fall under the category of Small Scale industry unit because its
turnover as well as the capital investment in fixed assets is less than Rs.
Three crores.

Techno economic reasons for site selection:

Techno economic factors must be considered before selection of site because it is

the decision which is irrecoverable in nature and it is very hard to change
the location. There are many reasons for site selection. Our decision of site selection
is based on the following economic reason.

1. Nearness to customer
base.
2. Easy for
transportation
Efficient time
management
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Location of Warehouse: the warehouse will be located at Indrapuram, Ghaziabad as
the it is located on the NH-24 and near to the customer base.
Requirement of land: The basic activity of the Mini Mart will be to acquire and
pack the fresh vegetables and fruits and deliver it. One warehouse will be taken on
rent. 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 feasibility

Positioning:

Whenever customers need fruits and vegetables, ‘Mini Mart’ must come first in
their mind first. Mini Mart will be positioned as the fresh fruits & vegetables
provider for on time delivery.
Fruits like grapes, strawberry, blackberry will be cooled at the assortment centre
and then will be delivered. Only qualitative fruits and vegetables will be packed
and poor quality fruits and vegetables will be assorted and sold in the wholesale
market if possible.
On time delivery schedule also will be strictly adhered. Drivers will be negatively
reinforced for on time delivery to the customers.
Management concentration will be more on existing customer satisfaction and
customer retention rather than on expansion.

Segmentation:

Target segment will be upper middle and upper class people living in the targeted
area. Target customers would be those housewives who do not want to move
around for purchasing fruits and vegetables.
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Customer Relation:

Existing customers would be retained by providing fresh, hygienic and good

quality fruits and vegetables; timely delivery is also highly insisted for higher
customer satisfaction. In case of non delivery of the goods; those goods will
be delivered for free on the next day. The customers will be allowed to change their
order till 10pm.

Competition:

Mini Mart will have competition from Reliance Fresh, Big Bazaar, More Retail
Store, local fruit & vegetable stores and fruits vendors & vegetables venders.

Competitive Advantage:

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

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 COST OF PROJECT

Particulars Amount in Rs.

Deposit for warehouse 300000

Warehouse development expenses 50000

Karat (300*100) 30000

Weight machine (8000*4) 32000

Fridge 70000

Auto rickshaw carrier (20000*5) 100000

Preliminary expenses 60000

Working capital 200000

Software & It 30000

Computer 25000

Telephone (1500*2) 3000

TOTAL 900000

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 MEANS OF FINANCE:

MEANS OF FINANCE

Particulars Amount in Rs.

Promoter's contribution (115000 Rs. by each) 460000

Long term loan from SIDBI 500000

TOTAL 960000

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 PRELIMINARY EXPENSES:

Particulars Amount in Rs.

Legal expenses 10,000

Project report preparation 5,000

Electrification & water deposits 10,000

Inauguration expenses & other expenses 10,000

Market research 10,000

Initial advertisement expenses 15000

TOTAL 60000

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OPERATION PROCESS:

Purchasing fruits & vegetables from

wholesale Market

Making standard sized packages of

fruits & vegetables

Packaging as per customers’ orders

Loading of the packages in Vehicles

and delivery of the goods

Taking orders for the next day

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 REQUIRED INFRASTRUCTURE AND FACILITIES
Particulars No.
Delivery Vans 5
Karats 100
Computers 1
Billing Machines 2
Warehouse 1
Chairs 10
Tables 3
Refrigerator 1

Expected Operational Capacities

Delivery Van 1000Kg
Karat 25Kg
Refrigerator storage capacity 500Kg

Expected Operational Efficiency

Average Customer Interaction time at Delivery Time (Payment 1.5 Minutes
collection)
Delivery Van Mileage 15Km/Ltr
Average customer Packaging Time 1 Minute
Average Order Taking Time (On Phone) 1 Minute

Other Assumptions
Expected Amount Per Order Rs. 100
Packaging Cost 50p/package
Transport Route of Vehicle (2 Routes for a vehicle per day) 20 Km/Route
Electricity Units consumed per day 20 Units
Average No. of customers per day 500

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 MANPOWER REQUIREMENT:

Sr. No. Particulars Nos. Salary

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

A) Warehouse staff

Supervisor 1 10,000 120000

Packing staff cum delivery man 5 30000 360000

B) Office staff

Clerk/typist 1 3,000 36,000

Accountant 1 6,000 72,000

C) Purchase staff 3 27000 324000

D) Drivers 5 30000 360000

Total 93000 1272000

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 UTILITIES AND OVERHEAD:

AMT. IN RS.

Particulars Monthly Yearly

Rent 30000 360000

Transportation (inward carriage) 15000 180000

Electricity 3500 42000

Miscellaneous - 10000

TOTAL 592000

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 ADMINISTRATIVE EXPENSES:

Sr. No. Particulars Monthly Yearly

1 Stationary and printing 1,000 12,000

3 Telephone and fax 5,000 60,000

4 Legal charge 5,000 60,000

6 Travelling 9000 108000

7 Miscellaneous - 10,000

Total 250000

Note:

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

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RAW MATERIAL REQUIREMENT:

Particulars Amt. in Rs.

Fruits & Vegetables 1, 05, 88500

DEPRECIATION:

Particulars Amt. in Rs.

Refrigerator (@ 10% on Rs. 70,000) 7000

Karat ( @ 50%) 15000

Computers (@25%) 6250

Weight machine (@ 33.33%) 10667

TOTAL 38917

SELLING & DISTRIBUTION EXPENSES:

Particulars Monthly Yearly

Outward carriage
Delivery expenses (fuel cost) 20000 240000
Vehicle rent (5000*5) 25000 300000
Packing expenses 6000 72000
TOTAL 612000

Assumption:

1. Packaging expense will be 50 paisa per order.

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INTERST CALCULATION:
Particulars Amt. in Rs.

Interest on Term Loan from SIDBI (@ 10%) 50000

TOTAL 50000

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 PROJECTED INCOME STATEMENT
Years (in Rs)
Particulars 1 2 3 4 5

Sales revenue 18000000 36000000 72000000 144000000 288000000

Less:- expenses

Cost of goods sold 10588500 21600000 43200000 86400000 172800000

Depreciation 38917 77834 155668 311336 1122672

Repairs&
maintenance(vehicle) 20000 40000 80000 160000 320000

Salaries & wages 1272000 2544000 5088000 10176000 20352000

Administrative expenses 250000 400000 640000 1024000 1638400

Selling & distribution

expenses 612000 979200 1566720 2506752 4010803.2

Interest 50000 40000

Advertising expenses 150000 300000 600000 1200000 2400000

Warehouse expenses 592000 888000 1332000 1998000 2997000

Wastages 500000 850000 1445000 2456500 4176050

Total expenses 14073417 27719034 54107388 106232588 209816925

PBT 3926583 8280966 17892612 37767412 78183074.8

Income tax @ 30% 1177974.9 2484289.8 5367783.6 11330223.6 23454922.4

Net profit 2748608.1 5796676.2 12524828 26437188.4 54728152.4

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Assumptions:

1. Company aspires to grow at 100% growth rate y-o-y.

2. Loan will be paid in the second year fully.
3. Salary and wages will be increasing at 100% y-o-y.

4. Administrative expenses will be increased at 60% due to increase in the span

of operation.
5. Wastages will be increasing at 70% on y-o-y basis.
6. Company will increase advertisement expenses at 100% on y-o-y basis.
7. Volume of the orders has been considered instead of the individual items.
8. Gross margin rate is considered to be the same.
9. Additional Refrigerator, karats, computers, weighing machine will be
purchased every year due to higher capacity requirements.
10.Company office will be opened in the fifth year.

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 PROJECTED CASH FLOW STATEMENT:

Particulars 1 2 3 4 5

Sources

Promoters contribution 460000

Loan from SIDBI 500000

Cash flow from operating

Activity 2787525 5874510 12680496 26748524 55850824

Total 3747525 5874510 12680496 26748524 55850824

Applications

Cost of project 900000

Preliminary exp. 60000

Increase in assets 157000 157000 157000 5157000

Repayment of loan 100000 400000

Increase in working capital 400000 600000 800000 1000000

Total 1060000 957000 757000 957000 6157000

Net cash flow 2687525 4917510 11923496 25791524 49693824

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 BEP CALCULATION:

Particulars AMT. IN RS. AMT. IN RS.

TOTAL REVENUE 1,80,00000

LESS:- VARIABLE COST

Cost of goods sold 10588500

Transportation 180000

Delivery expenses (fuel) 240000

Packing expenses 72000

Wastages 500000

Total 11580500

CONTRIBUTION 6419500

LESS:- FIXED COST

Administrative expenses 250000

Salaries & wages 1272000

Vehicle rent 300000

Depreciation 38917

Repairs & maintenance 20000

Electricity 42000

Interest 50000

Miscellaneous expenses 10000

Advertisement expenses 150000

Warehouse rent 360000

Total 2492917

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Contribution margin ratio (= 1-Variable cost/ sales ) (1--.64) 0.36

BEP (IN RS.)= Break Even Sales in Rs. = [Fixed Cost / 1 –

(Variable Cost / Sales)] 2492917/0.36 6924769

Break even sales is Rs. 6924769 so we will be able to break even in 139 days
(break even sales/ daily sales)

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 PROJECT IMPLEMENTATION SCHEDULE:

PROJECT IMPLEMENTATION SHEDULE

Particulars DAYS

Product selection & completion of market survey 10

Project report preparation 5

Site selection 10

Selection of vehicle & customization 10

Warehouse development 15

Recruitment of manpower 5

Sales arrangements 3

No. Of days required to implement project 58

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MARKETING
STREATEGY

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 CONCLUSION

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

The challenge for this model will be inventory management, effective procurement
and waste reduction and cost reduction.

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

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