Business Plan ABC Trading Pvt Ltd (ABC) A Private limited Company

The Ahmedabad based Company An Initiative by Manish Asnani

Prepared by Manish Asnani !anuary "#$ "%## Copy number #

Business Plan

Prepared By Manish Asnani M _ 000_44 (PGP-GBM) (Second Year)

Evaluated y! Pro"# $evan% Patel &aculty' Entrepreneurship' (cellon )nstitute * School o" Business

+a le o" ,ontents a& '(e)utive *ummary a& Company b& Mar+et ,pportunity )& Mission *tatement d& Management e& Competitors -& Competitive Advantages

b&

The ,rgani.ational Plan a& *ummary /es)ription o- Business Mission *trategy *trategi) 0elationships *&1&,&T Analysis b& /es)ription o- Business )& *ervi)e d& Administrative Plan Lo)ation Management Personnel A))ounting and Legal

)&

The Mar+eting Plan a& Mar+et Analysis Target Mar+et

 Competition Mar+et Trend Mar+et 0esear)h b& Mar+eting *trategy 2eneral /es)ription Method ,- *ales Pri)ing Branding *ales *trategies Advertising *trategies

d&

The ,perational Plan a& ,perations

e&

Assessment o- 0is+

-&

3easibility Plan

g&

The 3inan)ial Plan a& Three 4ear In)ome Pro5e)tion

b& Cash 3lo6 )& Pro5e)ted Balan)e sheet d& 3inan)ial *tatement Analysis

-#

E.ecutive Su//ary

,o/pany

ABC Trading Pvt& Ltd is Ahmedabad Based Trading Company& ABC Trading emphasis 6ill on *upply Chain o- Mineral 1ater in Indian 0ail6ay& ABC Trading 6ill supply Pa)+ed 7ualitative Mineral 1ater Bottle o- # liter to the end )ustomer in Indian rail6ay (Train)& Additionally$ this servi)e 6ill be provided -or all ma5or states o- India&

Mar0et 1pportunity

,n an average daily #"% passengers trains pass through Abad rail6ay station& Appro(imately # e(press8mail train )onsist the )apa)ity o- #9%% passengers reserved& i&e& the total audien)e mar+et -or ABC Trading 6ill be #9%%%% )ustomers8day

Mission State/ent

To help travelers 6ith a basi) need i&e& 6ater& Providing :ualitative mineral 6ater at subsidies rates$ so that no one remains thirsty&

Mana%e/ent ABC trading 6ill have a strong management team )onsist o- -inan)ial manager$ human resour)e manager$ operational manager and assistants& Management team 6ill also beside managers there 6ill be "%% employees -or dire)t selling& The )riteria -or re)ruiting the bottom employees 6ould be those 6ho are unemployed or is -or a need o- 5ob& ,o/petitors /ire)t )ompetitors are Bisleri$ ;inley$ A:ua-ina$ Bistar$ ;ing-isher$ M)do6els and lo)al Competitors 6hi)h do not have branding or have a dupli)ate branding$ lo)al brands )over ma5or mar+et share in bottled mineral 6ater industry& ,o/petitive Advanta%e The )ompetitive advantage is that ABC Trading Pvt Ltd is providing the mineral 6ater bottle o- # litter at 0s&<$ 6hile other brands sell the same produ)t at a range o- 0s& #" to 0s& #=

2#

+he 1r%ani3ational Plan

a# Su//ary $escription o" Business

Ab) trading Pvt ltd 6ill be Ahmedabad based Pvt ltd trading )ompany and 6ill emphasis on supply )hain omineral 6ater in Indian rail6ays$ dire)t sellers 6ill be re)ruited to sell produ)t in Indian rail6ays this 6ill help )ustomers to get :ualitative mineral 6ater in the 6hole 5ourney 6henever they -eel need o- thirst&

Mission

To help travelers 6ith a basi) need i&e& 6ater& Providing :ualitative mineral 6ater at subsidies rates$ so that no one remains thirsty&

>ision

To be)ome a mar+et leader )ompany in mineral 6ater (In Indian rail6ays)

,b5e)tives

To provide 7ualitative mineral 6ater in Indian rail6ays& To -ill the gap o- supply in mineral 6ater in Indian rail6ays& To provide lo6 )ost mineral 6ater bottle so that every traveler gets 6ater to drin+$ )onsidering all )lass o- people&

*trategy

1ill serve Cold Mineral 1ater Bottle in Indian 0ail6ays (Bailey mineral 6ater) -or 0s& <$ (6hose M&0&P is 0&s #=)& The supplier 6ill be Bailey (Parle agro produ)t) ? is a 6ell ;no6n brand and is observed trust 6orthy in Indian mar+et -or mineral 6ater&

*trategi) 0elationships

Parle Agro Ltd Ir)t) (Tender) !b Contra)tor

S4ot Analysis

Stren%th

#"% Trains daily -rom Ahmedabad @o need to mar+et the brand& Basi) need Can be stored -or at least # month

5ea0ness

"%% employees to manage& sales to operate Controlling )an be di--i)ult&

1pportunity

2aps bet6een demand and supply have been observed& @o )ompetitor in same pri)e segment&

+hreat

Ilegal unions& Change o- 0uling 2overnment

# $escription o" venture

Product A mineral 6ater bottle o- # litter&

Service /ire)t selling is been )hosen as a strategy to sell the produ)t&

Si3e o" usiness o 'a)h train 6ill be provided 6ith ma(imum A%% bottles o- # litter$ at # st year& o 'a)h train 6ill have A nos& o- dire)t sellers&

c# Service

1e 1ill serve Cold Mineral 1ater Bottle in Indian 0ail6ays (Bailey mineral 6ater) -or 0s& <$ (6hose M&0&P is 0&s #=)& Bailey (Parle agro produ)t)is a 6ell ;no6n brand and is observed trust 6orthy in Indian mar+et -or mineral 6ater& ABC Trading 6ill provide /ire)t *elling to Passengers Traveling 6ith Indian 0ail6ays&

/ire)t selling 6ill help Customers to -ill the gaps -or need o- mineral 6ater every time 6hile travelling -rom one pla)e to other&

d# Ad/inistrative Plan

Lo)ation

a) Bead ,--i)e ABC Trading ()ompany) 6ill have the head o--i)e at Paldi Ahmedabad$ -rom here all the a)tivities 6ill be managed&

b) 1are house # 6arehouse o- #%%% s: -eet 6ill be o))upied near ;alupur area at the )ost o- 0s&9%8s: -eet

Management

ABC trading 6ill have a strong management team )onsist o- -inan)ial manager$ human resour)e manager$ operational manager and assistants& Management team 6ill also beside managers there 6ill be "%% employees -or dire)t selling& The )riteria -or re)ruiting the bottom employees 6ould be those 6ho are unemployed or is -or a need o- 5ob&

Personnel

A))ounting and Legal

B&0& manager Admin *ta-,peration manager Control manager

@o o- Position (#) @o o- Position (#) @o o- Position (#) @o o- Position (#)

3inan)e manager A))ountant /ire)t *eller

@o o- Position (#) @o o- Position (#) @o o- Position (#)

B&0& manager Admin *ta-,peration manager Control manager 3inan)e manager A))ountant /ire)t *eller

0*&"%$%%%8month8employee 0*&#%$%%%8month8employee 0*&9%$%%%8month8employee 0*&#%$%%%8month8employee 0*&9%$%%%8month8employee 0*&#%$%%%8month8employee 0*& =$%%%8month8employee

Legal Br Poli)es

@o 'mployee 6ill be on pay role basis on )ompanies name& All managers and e(e)utives in every department 6ill be titled as )onsultant& All dire)t sellers 6ill be hired -rom )ontra)tor$ total salary 6ill be given to )ontra)tor and /ire)t seller employees are liable to ta+e salaries -rom )ontra)tor itsel-&

6# +he Mar0etin% Plan

a# Mar0et Analysis

,pportunity identi-ied 1ater ? a basi) @e)essity$ generally 6hile traveling people are more )ons)ious about their health&

*i.e o- the opportunity #"% trains departing -rom Ahmedabad C 2u5arat

Targeted Audien)e =% Trains /eparting -rom Ahmedabad

) ,o/petition

/ire)t )ompetition /ire)t )ompetitors are Bisleri$ ;inley$ A:ua-ina$ Bistar$ ;ing-isher$ M)do6els and lo)al Competitors 6hi)h do not have branding or have a dupli)ate branding$ lo)al brands )over ma5or mar+et share in bottled mineral 6ater industry& In /ire)t )ompetition

Tea

Co--ee *oup And any produ)t sold in range o- 0s # to 0s& #%

c# Mar0et +rend and Mar0et 7esearch

o The Indian mar+et is estimated at about 0s "$%%% Crore and is gro6ing at 6hopping rate o- A% per )ent& By "%"%$ it 6ill rea)h 0s D$%%% ?#%$%%% Crore 6ith 99 per )ent mar+et -or mineral 6ater& o *)ar)ity o- potable and 6holesome 6ater at rail6ay stations has also added to the gro6th& o As Ab) trading is selling mineral 6ater bottle o- bailey in 0s&< & The more demand -or the produ)t 6ill be seen& o The trend o- the 6ater bottle is been observed 6hile traveling in a train& o This is be)ause people are more )ons)ious -or health spe)ially 6hen they travel -rom one pla)e to another and so 6ater plays an important role&

# Mar0etin% Strate%y

a) 2eneral /es)ription

ABC Trading 1ill serve Cold Mineral 1ater Bottle in Indian 0ail6ays (Bailey mineral 6ater) -or 0s& <$ (6hose M&0&P is 0&s #=)& The supplier 6ill be Bailey (Parle agro produ)t) ? is a 6ell ;no6n brand and is observed trust 6orthy in Indian mar+et -or mineral 6ater& As the pri)e is lo6 )ompare to mar+et pri)e and Bailey is the 6ell?+no6n brand the mar+eting othe produ)t 6ill be easy&

b) Method ,- *ales

/ire)t selling is been )hosen as a strategy to sell the produ)t&

)) Pri)ing

The pri)e o- # litter 6ater bottle 6ould be 0s&< -or end )onsumers& Bailey 6ill provide per bottle -or 0s A8 bottle to ABC Trading& I- Ab) Trading 6ill sell ea)h bottle -or 0s& < than 0s& 9 6ould be the pro-it -or ea)h bottle sold&

d) Branding

The produ)t 6ill be branded 6ith Bailey (brand name)

e) Advertising *trategies

@o mar+eting )ost to ABC Trading Company& Parle agro 6ill be doing advertising o- their brand&

d#

+he 1perational Plan

e#

Assess/ent o" ris0

Mar+et ris+ 3oot -all o- reservation (not -i()

Customer ris+ Belie- (lo6 pri)e E lo6 :uality)

Politi)al ris+ 0uling 2overnment Budget

*easonal 0is+ At 6inter the usage o- drin+ing 6ater is less

Contingen)y Plan d& Change the supplier e& *ell at rail6ay stations ()abins -or re-reshments)

") &easi ility Plan

/is)ussed 6ith Mr& Barsh *harma at Bha)hau +ut)h& C Parle Agro Ltd& (operational head) Ir)t) tenders 6ill help to start the businessF every year Ir)t) announ)e tenders -or 6ater )ontra)t& Mr& Mu+esh patel (6hole 6est )orridor tender holder -or "%#% C "%## Contra)t -or 'mployees !B Consultan)y @arol Ahmedabad

%) &inancial plan

Start up E.pense

Tender bid 0egistration Pvt ltd )ompany Assets Advan)e to Parle agro

0s A$%%$%%% 0s #$%=$%%% 0s =$%%$%%% 0s #$%%$%%$%%% ???????????????????????????????

8et +otal

7s# -'-0'09'000

)nco/e State/ent "or -st year

,ash "lo4 -st year

Balance Sheet "or -st year

+a.a le pro"it

Total revenue E 0s& #%$%D$%%$%%% Total payments E 0s& <$A"$<G$%%% Tentative Pro-it 0s& "$G=$"A$%%% Ta( amt&E 0s& "$G=$"A$%%% H 9"&AA=I E DG$%=$<#"J "$=D$#<# (9I )ess) E DD$G9$DD9 @et pro-it E 0s&#$<G$G%$##<

Sources o" Application o" &unds

)nco/e state/ent- "or year (2)

,ash "lo4 "or 2nd year

Balance sheet "or 2nd year

)nco/e State/ent "or 6rd Year

,ash &lo4 Pro:ection "or 6rd year

Balance sheet "or 6rd Year

h) Private ;i/ited ,o/pany

a) 7ules &or incorporatin% a private li/ited co/pany!

+he process

,btain /ire)tor Identi-i)ation number Time ta+en ,ne day Charge 0s #%%8? 6&e&-& #st !uly$ "%%<

2et your digital signature )erti-i)ate Time ta+en 3our days Charge 0s A%% to 0s "G=%

2et the name o- the )ompany approved Time ta+en T6o to three days (6ithin seven days) Charge 0s =%%

Memorandum and arti)les o- asso)iation vetted and printed Time ta+en 6ithin si( months o- name approval Charge @il

2et the do)uments stamped Time ta+en ,ne day Charge *tamp duty varies -rom state to state

2et the memorandum and arti)les signed by at least t6o subs)ribers Time ta+en ,ne day

2et the )erti-i)ate o- in)orporation Time ta+en 3ive to ten days

i) $ate line

Tal+s 6ith Parle agro C 3eb "%#"

Proposal submission to Parle agro C 3eb "%#"

0egistration o- )ompany C 3eb "%#"

Tender Bid C Mar)h (a-ter rail budget)

Contra)t 6ith Parle agro C April "%#"

Contra)t -or employees C April "%#"

'mployee hiring C April "%#"

Asset Pur)hase C April "%#"

,perations )ommen)e ? May "%#"

0e-eren)es

*our)e Mr& /eepa+ shah #%" M8s shah ( Personal intervie6)