FEASIBILITY REPORT ON FARM FRESH PIZZA

BYDIVYESH DAHIRE

MT14IND009VNIT

CONTENTS

• Introduction• Raw Material Study• Location Study• Demand study• Technical Study• Infra requirement• Cost analysis• Source of Finance• Financial Analysis• Profit Analysis

INTRODUCTION• Making of PIZZA under the section of small scale

food industry.• It’s a contribution to the society as the motto is to

feed the hungry at best of cost and most of food.• But my Target costumer are mostly students

population. • The reason behind my this is that most of the

youngsters are attracted towards fast food as it is convenient to eat and fast to order.

RAW MATERIAL• PIZZA BASE• OIL• CHEESE• TOMATO• CAPSICUM• OLIVE(BLACK) • JALEPINO• ONION• BABY CORN• COCA COLA (DRINKS)• GREEN CHILLIES• SALT• SAUCE

LOCATION STUDY

• LOCATION for plant and its outlet establishment is chosen in BHILAI and DURG district of CG.

• AREA OF LAND:-Area required for production is about 0.4 acre of land in JUNWANI of BHILAI @10 LAKH PER ACRE.

• OUTLETS:- Outlets are proposed in 3 locations of size 1000 sqft i.e. junwani, deepak nagar near BIT college Durg, civic center sector and near CSIT college

PLANT LOCATION

cont….

• TRANSPORTATION:- Rented vehicles for transportation and supply are easily available near the working site.

• POWER : Electricity is easily available throughout 24 hrs. CSEB has established Power sub station in Bhilai.

• OTHER FACILITIES : The amenities like Post office, Banks, Police station, Petrol Pumps, Canteen, Bus services etc. are available in this area.

DEMAND STUDY

• The demand of my product is directly dependent on its location.

• As I have no competition around my product except PIZZA HUT , but still the demand for pizza will be high to full both the companies.

• Also my concentration will be on the students crowd only which has a very high demand probability

Cont…..

• Also there are around 13 to 15 colleges including very big brand school in BHILAI and DURG.

• Which includes students on average of about 1000 per college

• And expected demand is about 15% 0f average per college.

TECHNICAL APPROACH

BAKE

PLANT CAPACITY

• PRODUCTION OF PIZZA TOTAL NUMBER OF PIZZA /DAY= 300 UNITS

VARIETY QUANTITY COST/unit

VEGGIE 100 100

VEGGIE DELUXE 100 150

VEGGIE SUPEREME 100 200

IMPLEMENTATION SCHEDULE

PROCESS EXPECTED TIME

Purchase of land 1 Month

Sanction of loan 3 Month

Purchase of equipment 1 Month

Construction plant 5 Month

Hiring workforce 1 Month

Trial run 1 Week

Total Time : 8 Month

WORKFORCE REQUIREMENT

DESIGNATION NUMBER SALARY

PLANT MANAGER 1 25000

PRODUCTION MANAGER 2 20000/PERSON

TRANSIT MANAGER 1 20000

DELIVERY MAN 3 10000/PERSON

COOK 5 10000/PERSON

SALESMAN 6 10000/PERSON

ACCOUNTANT 2 10000/PERSON

SECURITY 2 10000/PERSON

TOTAL 20 235000 INR

MACHINE REQUIREMENT

COMPONENT NUMBER PRICE

OVEN 3 4,10,000/OVEN

UTENSILS 50000 INR

HOT BOX 3 20000/EACH

TOTAL : 13,40,000 INR

Depreciation on Machines & Equipments @10% 14,74,000 INR

INFRASTRUCTUREBUILDINGS EXPECTED PRICE

MAIN PRODUCTION HOUSE CONTRUCTION 10,00,000 INR

LAND (0.4 ACRE) 4,00,000 INR

FURNITURE 3,00,000 INR

TOTAL 17,00,000 INR

RUNNING COST ESTIMATEDELEMENTS DESCRIPTION ESTIMATED COST( INR)

PRODUCTION COST 15000/ DAY=4,50,000/ MONTH

ELECTRICITY 50000/ MONTH

PETROL & MAITANANCE 50,000/ MONTH

RENTS OF OUTLET 45,000/ MONTH

SALARY OF EMPLOYEES 2,35,000/ MONTH

OTHER MISCELLANEOUS COST 50,000/ MONTH

3 VANS ON RENT @10000/MONTH 30,000/MONTH

TOTAL 9,10,000/MONTH

FINANCIAL ANALYSIS

• FIXED COST= INFRA+ MACHINE= 31,74,000 INR • RUNNING COST= 9,10,000 INR/ MONTH• TOTAL REVENUE =100*100=10000/ DAY 150*100=15000 /DAY 200*100=20000 /DAY • TOTAL= 45000/ DAY = 13,50,000/ MONTH

CONT….

• TOTAL REVENUE / ANNUM= 1,62,00,000 INR• TOTAL PRODUCTION COST/ ANNUM= 1,09,20,000

INR• GROSS PROFIT/ANNUM= TR-TPC =16200000-10920000 =52,80,000 INR• TAX DEDUCTION = 30% of GROSS PROFIT =15,84,000 INR• NET PROFIT = GP-TD= 36,96,000 INR

CONT….

• RATE OF RETURN= NET PROFIT/ TOTAL CAPITAL INVESTMENT

=(36,96,000/1,39,60,000)*100 =26.47 % • PROFIT RATIO =( NET PROFIT/ TOTAL

REVENUE)*100 = (36,96,000/1,62,00,000)*100 =22.81 %

BREAK EVEN ANALYSIS

• BEP = (FIXED COST/ (FIXED COST + PROFIT))*100

= 1,62,00,000/1,98,96,000 = 81.42%• BEP(volume)= FC* Total sales per annum/(TR-

TSPA)= 65836 UNITS OF PIZZA.• BEP(sales)= BEPs*TR/TSPA= 97,40,264 INR.• BEP(time)= TSPA/300= 220 days= 7 months.

SOURCE OF FINANCE

• SBI Raipur main branch CHHATTISGARH• 80% of the total fixed cost is financed by the

bank• Rest is financed by father .

SUPPLIERS

• RAW MATERIAL – local open market in BHILAI• Oven -Guangzhou Lai Mei Machinery

Equipment Co., Ltd. Guangdong, China• Foshan Shunde Qualibake Food Machinery

Co., Ltd. . Guangdong, China

THANK YOU