ON
Uummm..
In Partial fulfillment of
ENTREPRENEURSHIP PRACTICAL
CLASS -12
ACKNOWLEDGEMENT
I have taken efforts in this project. However, it would not have
been possible without the kind support and help of many
individuals and organizations. I would like to extend my sincere
thanks to all of them.
I thank my God for providing me with everything that I required
in completing this project.
I am highly indebted to the Teacher in Charge Mrs NAMITA
KHANDELWAL .for her guidance and constant supervision as
well as for providing necessary information regarding the
project & also for his support in completing the project.
I would like to express my gratitude towards my parents for
their kind co-operation and encouragement which helped me in
the completion of this project.
I would like to express my special gratitude and thanks to
industry persons for giving me such attention and time.
My thanks and appreciations also go to my classmates in
developing the project and to the people who have willingly
helped me out with their abilities.
Executive Summary:
We are starting a business of manufacturing chocolates. Our primary focus is locally
manufacturing premium dark and milk chocolate, multigrain chocolate bar, liquid filled
chocolate bar. Our target market is whole chattisgarh & Maharashtra and premium
chocolates are exported outside the country. The customers to whom our products will be
supplied are retailers, wholesaler, trader in metro cities and local market. The location of
our manufacturing plant is Shendra, MIDC bilaspur.
We would be targeting the customer of children, middle age customers and our range of
premium chocolates are only for adults.
Our Company would be a partnership firm. Establishment of the firm includes three
owner partners having equal participation and involvement in to the firm named as,
In the range of dark chocolate only rich cocoa and the percentage of the cocoa is more
than other one. The research proves that dark chocolate is good for the heart patients.
Our next type of chocolate that is milk chocolate contains more percentage of milk
which contain nutritious and more percentage of Lactose in it.
Nutritious bar is for those peoples who are more conscious about health and choosy. This
chocolate bar contains almond, walnut, cashew which make this bar more nutritious,
tasty and healthy.
Liquid filled chocolate bar this is the premium range of chocolate bar which we are tends
to export outside the country.
Gift-Giving
Bulk Candy
Premium
Unique
or
On-Site
Baking
Ethical
The chocolate industry has proven both resilient during the recession and innovative to
meet changing consumer tastes and criteria. Growth will remain strong as chocolate
gains in popularity in new markets and the global economy powers ahead. Healthier
varieties are gaining market share and discerning consumers are willing to pay a
premium for ethical production, but through it all, chocolate demand continues to grow.
THE CHOCOLATE INDUSTRY IN INDIA
The chocolate industry in India has a size of 20000 tones and is worth about Rs
400crores. The chocolate market has been growing by nearly 35 %. However there has
been some slowdown in the last two years. The chocolate market is predominantly urban
with coverage of 95 %. The sales volume has decreased by 5% in the last year and the
chocolate market had declined with the average consumption coming down by 25% from
16000 tonnes to the current level of125000 tonnes. Chocolate consumption in India is
extremely low. Per capita consumption is around160gms in the urban areas, compared to
8-10kg in the developed countries. In rural areas, it is even lower. Chocolates in India are
consumed as indulgence and not as a snack food. A strong volume growth was witnessed
in the early 90s when Cadbury repositioned chocolates from children to adult
consumption. The biggest opportunity is likely to stem from increasing the consumer
base. Leading players like Cadbury and Nestle have been attempting to do this by value
for money offerings, which are affordable to the masses. Cadbury, a subsidiary of
Cadbury Schweppes is a dominating player in the Indian chocolate market with strong
brands like Dairy Milk, Five Star, Perk, and Gems etc. Dairy milk is the largest
chocolate brand in India.
The Indian Chocolate Industry has come a long way since long years. Ever since 1947
the Cadbury is in India, Cadbury chocolates have ruled the hearts of Indians with their
fabulous taste.
The size of the market for chocolates in India was estimated at 30,000 tonnes in 2008.
Currently, the Indian chocolate market is worth around 4,500 crore. The Indian
chocolate industry is registering a compound annual growth rate of 25 per cent at
present. The demand for chocolates in India has clocked about 35% rise as against last
year primarily in urban areas due to the rising shift to chocolates from traditional mithai
around the festival season. Bars of moulded chocolates like Amul, milk chocolate, dairy
milk, truffle, nestle premium, and nestle milky bar comprise the largest segment,
accounting for 37% of the total market in terms of volume. The chocolate market in
India has a production volume of 30,800 tonnes. The chocolate segment is characterized
by high volumes, huge expenses on advertising, low margins, and price sensitivity. The
count segment is the next biggest segment, accounting for 30% of the total chocolate
market. The count segment has been growing at a faster pace during the last three years
driven by growth in perk and Kit-Kat volumes. Wafer chocolates such as Kit-Kat and
perk also belong to this segment. Panned chocolates accounts for 10% of the total
market. The chocolate market today is primarily dominated by Cadbury and Nestle,
together accounting for 90% of the market.
Growth:
The consumption is impulse led and driven largely by convenient price point. As
economic growth creates more disposable income with more people the consumption is
expected to increase.The Indian chocolate industry may surpass the 7,500 crore mark
by 2015 with the help of growing consumption in the urban and semi-urban areas,
according to the industry chamber Associated Chambers of Commerce and Industry of
India (ASSOCHAM).
Vulnerability:
To overcome the barrier and to explore new area for our market we are not start up with
huge amount of infrastructure, costs our machinery would be taken for lease for first few
years of business.Marketing of our products would be on the basis good quality and
healthy products to provide a competitive advantage. We also introduce new ranges of
chocolates in our company with the help of research and development department
probably in next two years of our establishment of firm.
Promotion of our product will be within a nation and outside a nation; because there is
high competition at international market to overcome the treat of promoting our brand at
international level we will use the outsourcing and overcome that barrier.
Seasonal Factors:
We produce a seasonal line of chocolates which changes each year for season and each
major holiday, thereby making the packaging collectable. Our Premium range of
chocolate also have new flavours introduced primarily for major holidays and festivals
like Diwali, Rakshabandhan, Valentines day, Christmas. We can introduce our new
range of chocolates in stated holidays and festivals with fancy art packaging and
according to demand of the customers.
Technical Factors:
Chocolate-lovers may soon find their chocolate dearer if the problems plaguing the
industry continue. Raw material costs have risen by more than 20 % in the last few
years. Although retail prices have not increased, a rise in input costs will force the
manufacturers to consider a price hike. The Bigger players in the country such as
Cadbury, which leads the 2,500 crore chocolate markets in India with a share of 72%,
will find it easier to absorb the surge in input costs as it has products at various price
points in the market, said industry experts. Cadbury may also opt for a price hike, albeit
marginal, if the current trend continues. The Indian Chocolate Industrys current Margin
range between 10 and 20%, depending on the price point at which the product is placed.
The input costs in India are under check owing to the 24% decline in the prices of sugar.
Wholesaler
Wholesaler
Stockiest /C&F Agent
-Company owned
Retailers
Medical stores
Gift Shops
Supermarkets
Paan shops
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Financial Consideration:
After economic liberalization in 1991, major changes have occurred in food habits,
partly on account of rise in gross domestic product (GDP) growth and higher purchasing
power in the hands of the middle-class representing a third of the total population.
Availability of chocolate products has also exploded. A study had projected that sales of
the Indian chocolate industry would rise from $125/$130million in 1998 to $175/$180
million by the year 2000 and to $450 million by the year 2005which actually happened
irrespective of various negative factors. By this we can see rising demand of the
chocolate product in Indian market.
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B. Price Strategy
Products & Segments Uummms Segments Product Pack size Rate Value
Uummm Silk Fruit & Nut 145 Gram Rs. 125 Super Premium
C. Promotion Strategy
After settlement of our business we will use following techniques for
promotional strategy,
Local TV channel
Through pages and account on Social Networking Sites (Facebook & Twitter)
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D) Target Market
Our target market will be divided into three parts that are,
Upper class
Middle class
Good quality and healthy chocolates are the factors on which marketing will be done.
E1) Company Strength
The core competencies on which our company will compete are:
Taste
By consuming the Uummm Chocolates flavour begins to fill your mouth the moment
the chocolate begins to melt on your tongue it feel like a rich dark or milk chocolate and
it tastes like pure chocolate rather than cocoa powder. At first there is so much pleasure
in tasting the chocolate, it may be difficult to focus on the specifics of flavour. First
perception the consumer would describe for the chocolate as chocolaty and Yummy.
Quality
The raw ingredients are of finest quality and also care is taken of the production process;
roasting and crushing the cocoa beans and mixing the cocoa paste with sugar and other
ingredients such as milk. Yummy chocolates are high quality chocolates as they are
shiny brown, break cleanly and are smooth. A yummy chocolate has the sufficient
quantities of cocoa butter and vegetable fat so that it does not become greasy or sticky at
ambient room temperature.
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G) Competitor Analysis
G:1) Competitor Analysis
COMPAN
Y
FOUNDED IN
BRAND PORTFOLIO
Nestle
1860s
Ferrero
1940s
Mars
1911
Amul
1945
Hersheys
1894
Perfetti Van
Melle
2001,
when
Perfetti and Van
melle merged
Alpenliebe, Chlormint,
Happydent, Mentos
ITC
2002(confectioner
y segment)
Parle
1929
Cadbury
1948
Market)
(confectionery products)
(Indian
Centerfresh,
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Distribution channels
Our products would be distributed through channels like wholesalers, retailers and our
own sales force and our distribution channel shown in previous pages.
Proposed Location
For our business,
Bilaspur,chattisgarh.
the
proposed
location
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would
be
in
Shendra
MIDC,
Borrowed Funds
We also raise fund by using borrowed fund from IDBI Bank and from by
using the Project Finance & Export Finance it is not sufficient fund for our establishment
of organization and we took Hand Loan from friends and relatives.
Name of Bank IDBI Ltd.
IDBI bank is the development bank who provides loan to Industries development
purpose and they Create segment by using the type of industry like SME. MSME, Large
Industries etc., we approach to IDBI Ltd. Aurangabad Branch and mate to the Project
Finance Manager Mr.Ranmale and inform them about our business plan, location,
Partners & capital requirement and asks about procedure of loan proposal. He suggests
for Industrial Finance and the scheme. After discussing with him, he tells us about a
priority sector unit (Export Oriented Unit and MSME) and available the scheme to
finance and facilities provided by bank. How to make a project proposal for loan and the
requirement documents needed. After submitting the Loan proposal negotiates the interest
rates and tenure fixed. He gave an assistance to provide loan to our project proposal with
required 50 % of own fund and 50% loan provided by bank because we do not have any
collateral security. The lean were reserved with IDBI bank
.
Sr.
Party Name
Amount
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Interest
Tenure
No.
1
2
3
Rate
(in Month)
11.00%
13.00%
06 Months
(Max. 364 Days)
48 Months
12,850,000
.00
*Hand Loan Advance from customers taken from friends and relatives and suppliers. We
make them channel partners (Distributors) and export partners and bank assurance.
Capital Budgeting:
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Capital budgeting is the technique of making decision for investment in long term proposals.
It is a process of deciding whether or not to invest the funds in a particular proposal, the
benefit of which will be available over a period of time longer than one year.
Type of Capital Investments
Project Analysis:
If the project preliminary screening suggests that the business is suitable, a detailed analysis
of the project is done.
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In Amount = 1591839*18/100
= 286531
Taxation
a) Partnership Deed As per Indian Partnership Act 1932.
b) Minimum alternate Tax: not applicable for domestic export
c) Registration of Central Excise
d) Registration of Sales Tax
e) Registration of The Income Tax Act 1961 (PAN No.)
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V. Human Resource:
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There is not more than 9-10 unskilled workers required on the field, because the
machineries are fully automated and there is less work to do manually on the production
line. Also the unskilled workers are to be trained to handle all machineries to avoid
defects and improve quality of the product.
Employment Agencies we can give the numbers of required man power to the
agencies or the consultancies to find the right candidate for the position.
Gate Hiring-For the sake of providing employment to the unskilled workers this method
can be used. This involved blue collar workers or daily wages workers.
Leasing In seasonal production contract workers could be hire to adjust short term
fluctuations in personnel needs, the possibilities of leasing personnel for some specified
period may be considered.
Labour Contractors we can also recruited workers through contractors who are
themselves the employees of this organisation.
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Salary of workers & employees: (Cost on HR estimation and its assessment w.r.t.
return is to be done)
The pay given to the skilled persons are on the basis of their level and for the position.
So we pay our semi-skilled as well as skilled employees 8,000 to 10,000 per month
salary respectively.
According to The Minimum Wages Act, 1948 the recent basic wage must be 6,500Rs.
And we offered 7,000 Rs. Per person to our workers. We will place contract based
labours and we will make changes in our pay structure as per changes made by central or
state government.
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Mobile: 9323877672
Area: Fort
chocolate-city4u2 yahoo.com
Email: chocolate-city4u2@yahoo.com
The machineries which we have selected can produce 100-300 kg chocolates per hour. It
can produce chocolates in different shapes .It can help to reduce cost of chocolates
mould. By Producing Chocolates in different shapes we can attract all segments of
market.
The production capacity is fully automated as mentioned as follows, so the need of
personnel is comparative less than other semi-automatic machine. The detail description
of the machineries is as follows,
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This machineModel NO.:QJZ-II especial for chocolate pouring and depositing including
mechanism, electrical controlling. The production flow including mould heating,
pouring, vibration, cooling, discharge, convey and so on with automatic operation. Suit
for producing pure chocolate, centre filled chocolate, double colour chocolate. Granule
mixing pouring chocolate, smoothly surface, weighing correctly is a good machine for
producing high quality chocolate. The capacity of the machine is producing 200kg per
day.
2. High-Speed Automatic Pillow Packing Machine:
Full-automatic packager is applicable for packing oblong, Quadrate, round, oval and
shaped candies. It functions rapid computer programming and photoelectric tracing,
frequency control for stable and free running, reversible outsize candy sorting disc
enables empty package rate to get optimal effect, excellent performance, simple
operation and high-speed package of the whole machine.
The packaging speed (granile/m) 800
The dimensions (length-width-height) 300013501450mm
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Maharashtra, India
http://www.indiamart.com/harihar-oil/
4. Cocoa, powder, mass and butter:
BM Foods, Mumbai
No. 305, SaiSharan Apartments, N.C. Kelkar Road,
Shivaji Park, Dadar,
Mumbai - 400028,
Maharashtra, India
http://www.indiamart.com/bm-foods/
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Production
Manufacturing process
Chocolate production is highly sophisticated computer controlled process with much of
the new specialist machinery. Machines like as chocolate cooling tunnels, enrobing
machines, coating machines, moulding machines.
Chocolate processing: Production flow of chocolate
Cleaning
When seeds arrive to factory they are carefully selected and cleaned by passing through
a bean cleaning machine that removes extraneous materials. Different bean varieties are
blended to produce the typical flavor of chocolate of particular producer. Then the bean
shells are cracked and removed. Crushed cocoa beans are called nibs.
Roasting
The beans are then roasted to develop the characteristic chocolate flavor of the bean in
large rotary cylinders. The roasting lasts from 30 minutes to 2 hours at very high
temperatures. The bean colour changes to a rich brown and the aroma of chocolate
comes through.
Grinding
The roasted nibs are milled through a process that liquefies the cocoa butter in the nibs
and forms cocoa mass (or paste). This liquid mass has dark brown colour, typical strong
smell and flavor and contains about 54% of cocoa butter.
Cocoa Pressing
Part of cocoa mass is fed into the cocoa press which hydraulically squeezes a portion of
the cocoa butter from the cocoa mass, leaving "cocoa cakes". The cocoa butter is used in
the manufacture of chocolates; the remaining cakes of cocoa solids are pulverized into
cocoa powders.
Mixing and Refining
Ingredients, like cocoa mass, sugar, cocoa butter, flavorings and powdered or condensed
milk for milk chocolate are blended in mixers to a paste with the consistency of dough
for refining. Chocolate refiners, a set of rollers, crush the paste into flakes that are
significantly reduced in size. This step is critical in determining how smooth chocolate is
when eaten.
Conching
Conching is a flavour development process during which the chocolate is put under
constant agitation. The conching machines, called "conches", have large paddles that
sweep back and forth through the refined chocolate mass anywhere from a few hours to
several days. Conching reduces moisture, drives off any lingering acidic flavours and
coats each particle of chocolate with a layer of cocoa butter. The resulting chocolate has
a smoother, mellower flavour.
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We could get DIN (Director Identification Number) which is printed, signed, and sent to
Ministry of Corporate Affairs.
Get a TAN (Tax Account Number) for income taxes from Income Tax Departments
Assessing Office.
We should also get food process order certificate from ministry of food processing
industries and also doing as business certificate required for our chocolate industry.
Factories Act, 1948
This is applicable to enterprises where the number of employees is:
Ten or more and where power is used; or
Twenty or more and power is not used.
The enterprises covered under the Act are required to keep certain records:
Muster Roll
Workers Register
Overtime Register
Advance Register
Register for Fine
Register for Deductions
Register of Wages
Register of Accidents and Dangerous Occurrences
Bond Inspection Book
Register of Cleaning and White Washing
Record of Examination of Parts of Machinery
There is another Act known as Shops & Establishment Act which is applicable
to shops and business undertakings employing 5 or more persons.
Employees Provident Fund &Miscellaneous Provisions Act, 1952
The Act applies to every factory or establishment employing 20 or moreemployees. It,
however, exempts a factory or establishment for an initial periodof 3 years from
commencement of business if the number of employees is morethan 50 and for an initial
period of 5 years if the number of employees is lessthan 50. The minimum contribution
payable by the employer is 12% of the basicsalary contribution and Dearness Allowance. The
employee also makes anequal contribution. The Act, however, does not specify a maximum
contribution.
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Milk and Milk Products Order (MMPO): regulates milk and milkproducts production
in the country. The order requires no permissionfor units handling less than 10,000
liters of liquid milk per day or milksolids up to 500 tpa.
Oils, De-oiled Meal and Edible Flour Control Order 1967 andVegetables Products
Control Order, 1976: control the production anddistribution of solvent extracted oils,
de-oiled meals, edible oil seedflours and hydrogenated vegetable oils (vanaspati).
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THANK YOU
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