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BUSINESS PLAN:

SALES, MARKETING AND DISTRIBUTION OF


AGRICULTURAL PRODUCTS - INTEGRATION WITH FOOD
PROCESSING.

This plan aims to find out a way to structure the


strategy of entering the market by studying the
market size,
government benefits, and
food processing based companies
hence recognizing key opportunities and then
working on a budget plan

PESTLE ANALYSIS
i) Political Factors
The political factor encompasses elements like
legislation, taxation, deregulation philosophies,
labour training and etc. (Anthony H,2008) All
organization within the food processing industry
are forced to innovate and cut costs to remain
Increasing globalization and trade barriers has
created an opportunity and challenge to the unit
as unit can enter the market by emerging
companies in political stable country to explore
the new market especially where processed food
could be a like service.

ii) Economic factors


The economic factors include interest rate,
disposable income, inflation, gross domestic
product, unemployment rates, budget deficit and
surplus, personal savings rate, business savings
rates and exchange rates. (Anthony H,2008).
The rise and fall of commodity and raw material
and rise in fuel prices all over the world cause the
rise of purchasing costs for food items and the
extra cost has to pass over to consumers by
increasing the prices of products.

iii) Social factors


Social cultural include traditions, lifestyles,
values, attitudes, beliefs, tastes, and workforce
diversity. (Anthony H,2008)
The unit shall foray into the Indian market
keeping in mind the festive seasons, current
demand of particular product and other social
factors. People in the different geographical
plains have different culture and lifestyle, and
they have different opinions and needs on the
current products offered.

iv) Technological factors


The rapid rate of changes of technology has
allowed new entrants to enter the market at a
lower cost base. (Anthony H,2008)
Traditional processes along with subsidized
machinery with communications devices can be
used by the unit to ensure the cost of labor and
production are reduced and orders to process
fasten up.

Legal factors
Includes health and safety, equal opportunities,
advertising standards, consumer rights and laws,
product labelling and product safety.
Meeting
food safety norms, utilizing the
government resources for food safety testing
labs and other parameters for one and half year
atleast.

Environmental Factors
Recent concern
They have become important due to the increasing
scarcity of raw materials, pollution targets, doing
business as an ethical and sustainable way, carbon
footprint targets set by governments.
Shall prove a source of income- utilizing waste.
Example taken from Dharmasthala Manjunath
Temple.

SEGMENTATION, TARGETING AND


POSITIONING
Number of food processing in organized sector in
India
Demand of exports of particular Indian agro food
products.
Identifying geographically Indicated/ likely
indicated fruits/vegetables specialties from that
region.

DESCRIPTION OF THE VENTURE


Place:
Muzzafarpur: Collection center
Muzzafarpur

Processing Plant:
Khagaria, food park facility

INITIAL 5
RICE
The state has some famous fine varieties including Katarani rice,
renowned for its special aroma, produced in Bhagalpur- Munger
region.
Patna rice is another fine variety of the state. Sona Chood of
Bhojpur region is yet another scented variety of paddy grown in
Bihar.
LITCHI PROCESSING
Most sought after produce of the state in both national and
international market, Lithci offers an unparalleled range of
processing opportunities.
Mango

Mango is the leading fruit crop of Bihar with an approximate share


of 50 per cent of the total area under fruit crops.

BANANA RIPENING AND PROCESSING


In terms of diversification, Banana Fiber (trunk
and leaves) has a scope as well as a good market as
one of the diversified textile fibres. Naugachia,
being a district in the near vicinity of Bhagalpur
(textile hub of Bihar) has an added advantage for
setting up fibre extraction and yarning units, over
and above food processing

Directly selling the plantains to fibre producing


estates

Gorgon nut or fox nut:


Commonly known as makhana is a high value
commodity.
Bihar is the only state producing makhana (gorgon
nut) commercially. An almost exclusive offering
from the state, having more than 90% production of
the nut in the country.

Gorgon nut or fox nut:

Banana
ripening
and processing

Rice and rice products

Mango

Litchi processing

GENERAL EQUIPMENT LIST


Mixing & storage equipment
Choppers and slicers.
Mincers and macerators
Liquefaction, such as to produce fruit juice
Fermentation e.G. In beer breweries
Emulsification
Cooking, such as boiling, broiling, frying, steaming or grilling
Deep frying
Baking
Mixing
Addition of gas such as air entrainment for bread or
gasification of soft drinks
Proofing
Spray drying

When designing processes for the food industry the


following performance parameters may be taken into
account:
Hygiene, e.g. measured by number of micro-organisms
per unit of finished product
Energy consumption, measured e.g. by "ton of steam per
ton of sugar produced"
Generating cash on waste: measured e.g. by "percentage
of peeling loss during the peeling of potatoes sold to
fertilizer firm at__. In our case Bananas.
Labour used, measured e.g. by "number of working hours
per ton of finished product by ___number of persons."
Minimisation of cleaning stops measured e.g. by "number
of hours between cleaning stops"

SOURCES OF FINANCE
Personal savings/Capital , three partners: Rs. 2.5
lakh each
+
Leases
Bank Loans

SUPPLY CHAIN

Traditional Supply Chain

HUB AND SPOKE MODEL

VALUE CHAIN MODEL

Only few organized retail players like Reliance Fresh (Reliance Retail Ltd) follow a Value Chain
Model.
Organized retailers who adopt this type of model procure directly from farmers either through
contract faming or by taking the farm on lease and sell to customers.
This model is purely based on backward integration and is focused towards building an entire
value chain starting from the farmers to the end consumers

CUSTOMER PROFILING

1.
2.

3.

4.

Done on need to generate quick Cash and expand the


consumer base making the unit well-known.
Indian Urban Markets/ Retail chains
Online sellings to bulk buyers hotels, railways,
organizations and programmes such as Akshay
Patra. formation of bulk buying clubs with
residential societies and commercial food outlays.
Waste collectors Fibres to fertilizers
Fibre ... Stems sell at Rs. 25 to Rs. 30 per stem
Marketing channelized through formation of cooperatives of farmers union.

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