Neera

The Health Drink of Future

Presented By
Dinesh Pratap Singh Rathore
[34066]
Narendra Choudhary [34082]
Gaurav Chauhan [34128]
Ravi Azad [34141]
Rohan Shukla [34146]

Summary
Neera is a sweet juice obtained by tapping unopened
inflorescence of the coconut palm.
Neera proposed
to be the game
changer for
coconut farmers
Neera can be
promoted as Soft
Drink.

Processing Chain

Neera tapping done on

coconut trees

Collected in vessels with

anti fermenting chemicals

These vessels stored at

0-6 temperature
Transported to
Processing
Plant

Pasteurization kills the

germs

Packaging and Shipping

CentrifugationTo settles down the solid materials

and decolorizes the liquid to a
colorless liquid known as Neera

Core Activities of the Neera Co-Operative:

Distribution of saplings to the member farmers.

Collection of the sap from the co-operative members.
Processing and packaging of end product.
Marketing and distribution channel management.

Periphery Activities includes:

Maintaining the staff for carrying out the activities

Capital Management
General Management
Encouraging more farmers to join the cooperative

Produc
t

Produc
tive
workin
g day
in a
month

Daily
Produc
tion(pa
ckets)

Quantit Price
y per
packet

Revenu
e per
day

Neera

25

12500

300 ml

25

312500

By
product

25

1000

1 kg

150

150000

Monthly
P&L

Particular

Amount(Rs.)

Sales revenue per month from

Neera

78,12,500

Sales revenue per month for by

product

37,50,000

Total sales revenue per month

1,15,62,500

Sales cost & taxes

34,68,750

Sales realisation per month

80,93,750

Monthly expenses

64,75,000

EBIDTA per month

16,18,750

Depreciation

1,00,000

Interest

1,26,479

PBT per month

14,92,270

Basic Payments
to farmers per
month

5000

Monthly
patronage Per
farmer

2732

Total Income of
7732
Farmer per
Income
of Coop.
1219589
month
before Tax
Income of Coop. 1092923
After Tax
Retention of
Profit after
Patronage
Disbursement

546462

Assumptions:

Area of Operation: Palakkad

Neera Plant capacity: 5000 litres
Operation efficiency of plant : 75%
Members are the coconut farmers (10 sapling to be provided to every month)
4-5 Cluster of farmers with 20-30 farmers in one farmer group. (A total of
200 farmers)
Price of the product is same as the other players. (As the operations are
limited by the government licences)

Capital Structure and Investment

Normalized Cost

Item
1

Infrastructure
CostofLandforProductionFloor
LandforStorageGoDown
BuildingConstruction-ProductionFloor
BuildingConstruction-StorageGoDown
MiscSuppliesandMaterial
Plant Machinery
Gravityseparator.
QuickChiller
PasteurizationUnit
Measurementinstrument
StorageTanks
DieselGenerator
PackingMachine
LaboratoryEquipments
Labor
CEO
DirectorofMarketing,Production
DirectorofFinance
UnskilledLaborers
Recurring Charges
Electricity
Water
Maintenance
AnnualInsurancecost
OtherMiscExpenses
TOTAL

Units

perftsq
perftsq
perftsq
perftsq
lumpsum

Cost per item

1000
1000
575
575
100,000

Quantity

2,500
1000
2,500
1000
1

permachine
permachine
permachine
permachine
pertank
permachine
permachine
LumpSum

annualsalary
annualsalary
annualsalary
annualsalary

Rs/HP
cubicmeters
lumpsum
lumpsum
lumpsum

600000
120000
15,00,000
15,000
100,000
10,00,000
2600000
15,00,000

360,000
300,000
180,000
80,000

22
700
100,000
100,000
50,000

2,500lph,10-12000rpm
2
1
3
2
1
1
1

1
1
1
5

5,000
100
1
1
1

Total Cost (Rs)

69,72,500
25,00,000
10,00,000
14,37,500
5,75,000
100,000
65,35,000
12,00,000
2,40,000
50,000
45,000
2,00,000
10,00,000
26,00,000
12,00,000
12,40,000
360,000
300,000
180,000
4,00,000
4,30,000
1,10,000
70,000
100,000
100,000
50,000
1,51,77,500

C
?

FINANCING EXTERNAL INVESTMENT

Total external financing would come from multiple sources

Required External Investment (lakh Rs)

PRELIMINARY

Item

Project Cost

Local Farmers

NABARD / Govt Funds

Project Cost

135.07

20(14.8%)

115.07
(85.2%)

Working Capital4

16.7

8.35
(50%)

TOTAL

151.775

20
(13.17%)

123.42
(81.31%)

Actual project costs and required investment finalized during FPO set-up and
business set-up
1) Land cost not eligible for loan from local bank
2) Regional bank indicated up to 75% loan could be achieved for machinery, construction
3) 25% government subsidy quoted by local bank, 33% subsidy available for ST, SC, and Women enterprises
4) Working Capital based on raw material required for 8 day production cycle, includes facility management cost
Source: Cost Assumptions, Local Region Bank Office Input

Performance as Economic Enterprise

Membership level
Rate of growth in surplus generated
Rate of growth in net income per member
Rate of growth in output

Cooperative level

Rate of growth in assets

Return on investment
Financial ratios
Coverage of range of member needs
Reduction in cost of services

Performance as Social Institution

Members Active Participation

Regularity of election
Regularity of meetings of board
Percentage of women/youth members who attend meetings
Response to members grievances
Existence of members groups
Rate of growth of membership

Performance as Social Institution

Combating exploitation & Raising Income

Timely and regular payments for produce

Coverage of weaker members
Membership skill improvement program
Responsiveness to feedback of members
Inspections and audits
Representation of different sections in decision making bodies
Investment in community development

Performance as Social Institution

Harmony in relations within the structure

Unbiased ruling in case of disputes

Respect for the representatives of elected bodies
Frequency of meetings to sort out problems
Confidence in the board
Feeling of interdependence

Ethics & Integrity

Approval of plans in general body meetings

Regular social audit
Evolution & circulation of a code of ethics
Openness in dealings and business transactions
Freedom of access to members to records/documents