BUSINESS
PROPOSAL
LOTUS CRUNCH BITES
Product Introduction
Makhana, also known as Fox Nut or Lotus Seeds, is a highly nutritious seed
harvested from the Euryale ferox plant. It's commonly used in Indian cuisine and
revered for its unique properties.
Makhana is a highly nutritious food item. It is low in fat and calories and is a good
source of several essential nutrients.
Fox nuts are great snack food for diabetics and heart patients as they contain
good fat and have a low quantity of saturated fats. These properties make
makhanas good weight-loss food
MARKET POTENTIAL
India is the largest producer of makhana. The second largest producer is China.
Bihar produces 90% of the world's production of fox nuts. It has been adapted to
the tropical climate of India and is found in natural, wild forms in various parts of
northeast India and scattered pockets of central and northern India.
The Makhana market will grow at a CAGR of almost 8% during the forecast period
of 2022-2031.
The global fox nuts market size was valued at $38.90 million in 2021 and is
projected to reach $87.10 million by 2031.
Geographic Opportunity
Major Countries with huge
demand are the USA, UK,
Australia, and UAE.
For the countries with high
disposable income. This
business becomes highly
profitable.
The same product gets sold for
upwards of $100/kg.
India has less than 1,000
exporters
Finished Product - Flavoured Makhana
It's time to add some Indian magic with spices.
After procuring the processed Makkhana.We would roast
them and add Indian spices to them, which is in huge
demand in foreign markets.
The popular flavours in international market are Tangy
Tomato, Lemon Mint, Peri Peri Cheese, Sea Salt.
Go-to-Market Strategy
International Product Fairs such as Ambiente, Laborama,
Cosmoprof 2023, International Food and Drink Expo, FIBO
Global Fitness, etc.
Building partnerships with different buyers using EXIM
buyer & seller Directories
Google and FB ads campaigns for the related keywords,
which are lotus seeds, makhana and Fox nuts.
FINANCIAL ASPECTS
Fixed Capital
Roasting Machine(x2) - ₹ 1,45,000 (50-200 kg/h)
Makhana Mixing Machine - ₹ 1,45,000 (50 to 500 KG)
Packing Machine - ₹ 3,25,000
Packing Material Cost -₹ 8 / kg
Covered Area 1000 sqm. @ Rs. 40 sqm. - ₹40,000
Working Capital(per month) Staff and
Labour
Skilled Workers - ₹ 25,000 X 4 = ₹ 1,00,000
Supervisor = ₹ 40000
Makhana (1 MonthStock) - ₹ 60000 X 500 = ₹
30000000
Masala (Marinating a ratio of 85:15) - ₹ 9000 X 200
= ₹ 1800000
Electricity = ₹ 30,000
Water = ₹ 3,000
Other Contingent Expenses (per month)
Postage and Stationery = ₹ 5000
Advertisement = ₹ 25000
Telephone = ₹ 5000
Repair and Maintenance = ₹ 10000
Total Recurring Expenditure (per month)
Salary and Wages = ₹ 140000
Raw Material = ₹ 31800000
Utilities = ₹ 33000
Other Contingent Expenses = ₹ 45000
Total Capital Investment
Fixed capital = ₹ 1280000
Working capital = ₹ 32018000
Turnover (per annum) and Net
Profit
Flavored Makhana (Turnover considering that the
stock gets sold out around $100/kg in the target
market) = ₹ 48,00,00,000
Net Profit(per annum) (Before Income Tax) =
359400000 – 48600000 = 310800000
Net Profit Ratio = Net Profit x 100 / Turnover =
310800000x 100 / 480000000= 64.75 %
Rate of Return = Net Profit x 100/ Total Investment
= 310800000 x 100 / 33298000 = 933.38%
Breakeven Point
Total Depreciation(considering 10%) = ₹ 61500
Rent = ₹ 40,000
40% of salary = ₹ 56000
40% of other contingent expenses = ₹ 18000
Total = ₹ 1,75,500
B.E.P. = (Fixed Cost × 100) / (Fixed Cost + Profit) = ₹
175500 x 100 / (₹ 175500+ ₹ 310800000)
= 0.05643%
Licenses and Approvals
Entity Registration
DGFT License
Apeda RCMC
GST
Msme Certificate
FSSAI Central Approval
References
https://agriexchange.apeda.gov.in/Weekly_eRep
ort/Makhana_Report.pdf
https://trends.google.com/trends/explore?
date=today%203-m&geo=US&q=Makhana&hl=en
https://www.imarcgroup.com/india-makhana-
market
https://horticulture.bihar.gov.in/HORTMIS/baipp/
Downloads/ModelDPRMakhana.pdf
