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Sabziwala.com:-

Products and services:-

Now a day in changing social scenario most of the families are nuclear. In lots of families

both the parents are working, they used to go to their work early in the morning and thencome back to home at late night. As a result they mainly have to rely on fast foods and

home services, or they have to hire a cook who will do cooking for them. Again this has a

problem because regular fast foods/home services may not satisfy your taste buds. At thesame time in most of the cases it is not good for health and expensive too if we consider

these foods regularly for a long time.

If we analyze the problem we will see that people avoid cooking not because of the factthat they hate cooking. It is because before cooking they have to arrange several things

like they have to go to the market, purchase necessary ingredients of cooking, cut it, wash

it and then only they can start cooking. So it generally takes time which they dont have.

To avoid this you can store vegetables/fish/chicken etc but again the question come toyour mind is will it be fresh till when I cook.

Sabziwala.com is the solution to all of you. It is an online portal where you can place

your daily sabzi/fish/chicken orders and you will get home delivery when and where you

want. Not only that if you feel lazy we will help you with already cut and washed fresh

vegetables/fish/chicken etc. So our motto is You just cook rest all we take care. Youneed not to worry about freshness quotient because we will purchase your order just after

you place your order. So order us from your office either by phone or online and get your

order at your doorstep when you return. We will charge you only 12% of your totalpurchase as the service charge and you can pay using your credit card or e-banking

facility. We have special prepaid member card while we will charge you only 8% of yourpurchase amount as service charge. We provide free home delivery to any order morethan Rs-100.

We will always suggest you to cook your food yourself. But after the hard work for entireday if you dont like to cook at all even with our ready to cook products we are with you

with our mummys kitchen. We have very basic ghar ki khana where you will get 3

option like North Indian Food (rice, chapatti, sabzi, daal, paneer/non veg item), Gujrati

thali and South Indian Thali option. Our specialty will be cooking healthy, nutritious andhome like foods which you can take regularly without any problem.

Potential Market Analysis:-

Sabziwala.com will have market mainly in Indias fastest growing cities like Bangalore,

Pune, Chennai, Gurgaon, Delhi, Kolkata etc. Our target customers will be tech-savvy

young generation, mainly software and other service sectors professionals who earn more

but get a little time.

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It can face mainly 3 kinds of challenges like I) Departmental shops where ready to eat

packaged food is available ii) Street vendors and iii) Home delivered food (calleddabba system natively).

But sabziwala.com will create a separate market overcoming this market challenges. Thisis because of following reasons:

1. Processed ready to cook vegetables/ fish/ chicken which they do not from streetvendors.

2. Convenient time of placing the order and delivery.

3. Fresh products directly from market. Departmental shops usually sell processed

foods which are ready to cook, but these foods are frozen, kept for a long time andhence low in nutrition value and taste.

4. Mummys kitchen will serve for those who dont like to cook at all with tasty

home like foods.

Strategy and implementation summary:

Initially we will concentrate on mainly fastest growing Indian cities. We will have a

central office in each of the cities from where we will take orders over phone or internet

and these orders will be forwarded to zonal offices. Each of the zonal office will have a

tie-up with a local market from where they will purchase the order. They will cover acircle of 7-9 km radius. Each zonal office will consist of 29-30 persons (1 person for

taking the order via phone from central office, 4 persons for purchasing orders from

market, 3 person for processing vegetables/fish/chicken and make it ready to cook, 3person for mummys kitchen segment to make ready to eat foods and 19-20 person for

delivery, 1 person as supervisor of kitchen and delivery). The delivery persons will have

a bike/scooter and the entire set up will be flexible and no of workers can be increased ifrequired.

Flow Diagram of Entire Process

Purchasing the order from

local market of each zone

Zonal Office 2 Zonal Office 3Zonal Office 4

Processing the order (Washing/Chopping/Marinating

etc) to make it ready to cook and packagingCooking ready to

eat food

Delivery and on delivery

payment

Zonal Office 1

Central order receiving office

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Financial planning:

Start up expenses: We will start the business initially in 3 cities (Kolkata, Mumbai, and

Bangalore) and each city will initially have 1 central unit each and 3 zonal units in prime

locations. The start up cost is projected on the basis of it.

Means of Finance: - Owners cash (40%) =Rs.27, 44,000

Loan @12.5%= Rs.-41, 16,000

_______________________________

Total: Rs: - 68, 60,000

Operational costs (monthly basis):- As per as our projection the company will start running in 3

cities initially with total employee strength of around 250-265 people. There will be 29-30 people

in each zonal unit and 2 people in each central unit.

Heads Values

Salary and wages of personnel 15,00,000

House rent or lease payments 80,000

Advertising cost 6,00,000

Electricity 20,000

Gas 35,000

Telephone service and internet connection 20,000Web site updates on daily basis 25,000

Maintenance of computers, telephone etc 15,000

Depreciation of equipments @2.5% 2,500

Maintenance cost of vehicles 1,00,000

Fuel cost of Vehicles 4,00,000

Other expenses 1,20,000

Total operational cost/month 29,17,500

Heads Values

Start Up Expenses

Legal (Company registration etc) 1,00,000

Marketing before product launching (Print, Email-ad, sms. Glow sign

banners)

10,00,000

Web site (developing, updating, designing etc) 50,000

Total start up expenses 11,50,000

Start up assets

3 computers with i-net connection and telephone for 3 central units 75,000

House rent advance (for central and zonal offices in each city) 3,60,000

Equipments( gas oven, cooking utensils, chopping equipments etc) 1,00,000Telephone connection (for each zonal units) 75,000

Vehicle cost (15-bike/scooters for each of the unit for delivery) 50,00,000

Miscellaneous (Stationery, office equipments etc) 1,00,000

Total start up assets 57,10,000

Total Requirement (assets + expenses) 68,60,000

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Total operational cost/year 3,50,10000

Operational cost in this case will remain more or less same if our no of orders are increased butdont reach the maximum capacity. Except for few heads in the above table all the values will

remain unchanged and those changes of values will be negligible. What we mean to say is most

of the values are fixed value which does not depend on total no of orders if total no of orders

stays within maximum limit.

Capacity Utilization: - Each zonal unit will be capable of catering 550-600 orders with their

initial setup within a circle of 7-9 km radius with initial manpower of 29-30 worker/unit. In initial

phase we are considering 75% of utilization of total capacity and catering around 400-450 orders

daily per zone. We have assumed a 2.5% increase in orders during 2nd quarter and 5% during 3rd

and 4th quarter.

Sales Projection: -

Since the concept is very new it becomes difficult to speculate the sales revenue. We consider 1

square kilometer zone in our target area of each specific city. Then we tried to analyze who arethe potential customers in this zones and what amount of money they are actually spending in

market buying products like vegetables, fish, chicken and cooked foods etc.

We studied that in each testing zone the number of such order is around 5-7/day (avg=6) and each

order will have an average purchase amount of Rs.130-150 (avg= 140) depending on city. Now

since each of our zonal unit is covering 64-81 (avg=72) square kilometer area we straightaway

multiplied our sample data with a multiplication factor 72 (as initially we have taken sample zone

of 1 square kilometer). In this way we projected our sales revenue. So we can assume (6*72)=432

orders/day/zonal unit. Now multiplying this value with average order value (i.e. Rs-140) we get

that revenue/day/zonal unit is Rs-60,480. So each day from a city with 3zonal units we will get

revenue of Rs.1, 81,440. So from all of the 3 cities we will get a revenue of Rs.5, 44,320. Now

calculating this value on a quarterly basis we will get neutral quarterly turnover of Rs.-4, 89,88800. We have calculated optimistic value and pessimistic value by calculating +/- 5% of

neutral value.

At the same time this kind of concept will take its time to penetrate in the market and toovercome initial market inertia. We will put our stress in massive and intensive marketing and we

hope to get around 2.5 growths for first two quarters and 5% growth from 3rd quarter onwards.

Based on that we made projected sales chart.

Quarters Optimistic (Rs) Neutral(Rs) Pessimistic(Rs)

1st quarter 4,65,39360 4,89,88800 5,14,38240

2nd

quarter

4,77,02844 5,02,13520 5,27,24196

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3rd

quarter

5,0787986 5,27,24196 5,53,60405

4th

quarter

5,33,27385 5,53,60405 5,81,28,425

Total

Sales

19,83,57575 20,72,86921 2,17,65126

Final Profit/loss analysis:-

In this business we will take 12.5% extra as service tax with the purchase amount and we will

offer products at normal market rate. Since we are purchasing bulk orders from wholesale dealers

we are supposed to get 5-15% less from market value depending upon the product and the season.

On an average we can take 10% less from the purchase amount to ease our calculation. So our

profit model is described using base value as Rs-100

Order placed by customer Rs-100

Discount we are getting from wholesaler @10% of market value for bulk purchase: Rs-10

So our purchase value: Rs-90

Since we are taking service tax @12.5% from the customer on order value here our service tax is

Rs: - 12.5

So actually we are getting (10+12.5) = Rs. 22.5 per 100 Rs. order value. So based on that model

we calculated our gross profit directly from the order value (or sales value).

So net profit after first year ending:-= Rs. 1, 04, 34848

Heads 1st quarter 2nd Quarter 3rd Quarter 4th Quarter

Turnover in lacs 4,89,88,800 5,02,13,520 5,27,24,196 5,53,60,405

Add: 12.5%

service Tax

(+)61,23,600 (+)62,76,690 (+)65,90,524 (+)69,20,050

Gross Sales 5,51,12400 5,64,90210 5,93,14720 6,22,80455

Gross Profit 1,10,22480 1,12,98042 1,18,62944 1,40,13102

Less:

Operational cost

(-)87,52,500 (-)87,52,500 (-)87,52,500 (-)87,52,500

Less: Interest on

term loan

@12.5%

(-)1,28,625 (-)1,28,625 (-)1,28,625 (-)1,28,625

Repayment of

Loan

(-)1,00,000 (-)1,00,000 (-)1,00,000 (-)1,00,000

Net profit 20,41,355 23,16,917 28,81,819 50,31,977

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Projected Balance sheet of the first financial year:

Assets Rs. Liabilities Rs.

Fixed assets 16,10,00

0

Accounts payable 1,00,000

Less: Depreciation @ 5% (-)80,500 Current borrowings 30,00,00015,29,50

0

Interest on loan@8% 2,40,000

Intangibles 1,50,000 Provisions 50,000

others 2,00,000

Current assets Total liabilities 33,90,000

Cash 12,50,00

0

Accounts Receivable 3,00,500

Inventory 0

Total assets 34,30,00

0