B-PLAN OF
AY U
Boond Boond Se Hoti Hai Baath
BEVERAGES
BY
Amit Yereshimi
Executive Summary
India’s one billion people, growing middle class, and low per capita
consumption of soft Drinks made it a highly contested prize in the global CSD
market in the early twenty-first Century Ten percent of the country’s population
lived in urban areas or large cities and Drank ten bottles of soda per year while the
vast remainder lived in rural areas, villages, and small towns where annual per
capita consumption was less than four bottles. While Soft drinks were once
considered products only for the affluent, by 2003 91% of sales were made to the
lower, middle and upper middle classes. Soft drink sales in India grew 86.34%
between 1998 and 2010, from 5,670 million bottles to over 10,000 million and
were expected to grow at least 10% per year through 2012.
The major players in soft drinks are not concentrating on the health of
the people by breaking the rules of ()EEC. In another exposé, Down To Earth has
found that 12 major cold drink brands sold in and around Delhi contain a deadly
cocktail of pesticide residues. The results are based on tests conducted by the
Pollution Monitoring Laboratory (PML) of the Centre for Science and
Environment (CSE). CSE had blasted the bottled water industry’s claims of
being ‘pure’ when its laboratory had found pesticide residues in bottled water
sold in Delhi and Mumbai. Market leaders Coca-Cola and Pepsi had almost
similar concentrations of pesticide residues. Total pesticides in all PepsiCo
brands on an average were 0.0180 mg/l (milligrams per liter), 36 times higher
than the EEC limit for total pesticides (0.0005 mg/l). Total pesticides in all
Coca-Cola brands on an average were 0.0150 mg/l, 30 times higher than the
EEC limit.
All these things urged me to come up with a new kind of soft drink
that gives same fantasy and pleasure that the existing products do, along with
100% Ayurvedic backing.
Objectives
1. To provide healthy and Ayurvedic soft drink for every individual.
2. To establish this company as a market leader by next 5 years.
3. To make difference among existing brands.
Mission
` To provide a healthy and Ayurvedic soft drink with providing the
same fantasy and pleasure that the existing brands do, and to make a trend of
AYURVEDA.
Keys to Success
The keys to success are:
Will be the first business of its kind in the global market.
Business will be located near TUNGABHADRA River nearby NH-13.
Product quality will include AYURVEDIC ingredients which give healthy
vigor to everyone without any side-effects.
Business has the potential for expansion into other Imperial County
communities.
We have so many sources of getting raw material and that too minimum
investment.
No soft drink companies provide AYURVEDIC soft drink.
Doctors can prescribe this drink for sick.
Company Summary
AYU Beverages is a soft drink company that is mainly concentrating
on health and delight of people who drink it, with Ayurvedic backing. The
Ayurvedic ingredients give a special pleasure and taste. This drink gives the
same fantasy that the existing brands do.
Pre-requisites
Orders from Chief Engineer Munirabad Dam (Hospet) for using of
TUNGABHADRA river water.
Company registration.
Target Market Segment Strategy
This product is targeting each class of people like lower-middle,
middle, higher-middle and rich people. The rural market also is a best target
segment because they use some of the ingredient of our product as thirsty
reducing drinks. They can feel the same comfort of their homemade drinks.
Company Locations and Facilities
AYU BEVERAGES will be located at NH-13 which is easy for distribution
and connects big cities.
This location is very near to water resources (TUNGABHADRA River) and
has an opportunity of establishing E-Choupal.
A 1500 square foot drive-through facility will be built on a privately-owned
commercial property which will also include parking facilities, landscaping,
canteen and a small sitting area.
This location is has train facility so that transportation cost comes down.
The raw material availability is not a big matter since; the formers around the
location are growing all the requirements and that too low cost.
The location is surrounded by many villages by this way we can get labours
with low cost and the work profile itself doesn’t want skilled labours. So the
human resource can be handled easily and cost effectively.
Products and Description
Main products to be sold through the AYU BEVERAGES business will be
CINCHA PANAKA along with 3 categories such as SHADANG
PANIA(Nimboo), KSHIRA PAK(GINGER) & PARMATHYA.
CINNHA PANAKA(Anubhuta yoga)
INGREDIENTS WORK
Supakwa Cinca It gives taste with cleaning the tongue
Sharkara It fulfills thirsty.
Saindhava Lavana Increases digestion power.
Jiraka Curna It reduces vomiting sensation.
Marica Curna It increases appetite.
Chandana It purifies blood and gives good
fragrance to the drink.
BOTTLE MODEL AND LOGO
Boond Boond Se Hoti Hai Baat
Competitive Comparison
No other business in beverages specifically caters to the AYURVEDIC
market on a large scale. It is anticipated that prices will be competitive with other
businesses who sell soft drinks.
Sourcing
Raw Material:
We have huge resources of water and the other ingredients can be
procured from the farmers who grow that kind around the location or else we
can go for E-Choupal.
Semi-Finished Material:
Like bottles and caps, we are going to outsource them from the plastic
bottle manufacturers such as….
Harsh Impex
Be First to Rate
Location - 21, 3rd Flr, Suite No 321, Opp Great Eastern Hotel, Hemant
Basu Sarani, Burrabazar, Kolkata - 700001 (Also serves
Bangalore)
Also See - Plastic Bottle Manufacturers, Pet Bottle Manufacturers, Plastic
Container Manufacturers
Pragati Polymers
Be First to Rate
Location - No.31, 1ST FLR, Opp Passport Office(Lalbagh Road), 2ND
CRS, Sgn LYT, Lalbagh Road, Bangalore - 560027
Call - +(91)-80-66495451
Also See - Plastic Bottle Manufacturers, Plastic Manufacturers, Plastic
Can Manufacturers
Market Analysis Summary
Today the market of beverages is mainly played by 2 global players called
COCA-COLA and PEPSI CO. they have created the fancy and glory of
drinking soft drinks. Their influence made people to think that it is a sign of
dignity and greatness while drinking it.
Though people are aware of the pesticide issues about the soft drinks of
existing brand they are not ready to leave the drinks only because…….
o They may loose the glory of drinking the soft drink.
o They don’t have better option since these soft drink products acquired
all the corners.
Today people are more conscious about their health and thinking about the
Ayurvedic instead of Allopathic(English Medicines)
Market leaders Coca-Cola and Pepsi had almost similar concentrations of
pesticide residues. Total pesticides in all PepsiCo brands on an average were
0.0180 mg/l (milligramme per litre), 36 times higher than the EEC limit for
total pesticides (0.0005 mg/l). Total pesticides in all Coca-Cola brands on an
average were 0.0150 mg/l, 30 times higher than the EEC limit.
While contaminants in the ‘Dil mange more’ Pepsi were 37 times higher
than the EEC limit, they exceeded the norms by 45 times in the ‘Thanda
matlab Coca-Cola’ product.
Mirinda Lemon topped the chart among all the tested brand samples, with a
total pesticide concentration of 0.0352 mg/l.
Industrial Operation:
PURIFYING MACHINR
WATER
STORAGE
MOULDING
WATER
RESOURCES FILLING MACHINE
PACKAGING
There we locate 9ft.X9ft.X12ft. raw water storage for further usage
1 purifying machine
Molding section- We extract the solution from the ingredients and
mix into pure water then we shift to filling machine.
The filling machine does further works
Last stage will be packaging of finished goods.
We Require minimum 50 Employees for Handling the operations.
Industrial Participants
There are two leading players COCA-COLA & PEPSI CO. and TATA in
soft drink and the major market share is acquired by Coca-Cola and Pepsi co with
various products line.
Competition and Buying Patterns
There is a huge competition in soft drink market and also we have
double the opportunity though the market is being led by global players. The
Buying behavior of people is so interesting because if we ask them that why they
drink Pepsi, Coca-cola, they stuck for a moment and some replay that “for
fantasy” Some ‘for enjoyment’, some ‘for thirsty’ and lot of people ‘for no
reason’. By this we can understand that there is no clear picture about the primary
usage of soft drink. They just want pleasure and fantasy.
Promotion Strategy
Outdoor advertisement will play vital role.
(big hoardings at high density places )
Print Ads in famous news papers like THE HINDU
(across the INDIA and to attract class people)
Promoting products for an introductory price at its Grand Opening.
Through films
Social networking and online advertisements.
Hike in an incentives of seller.
Financial Plan
Per bottle cost
PARTICULARS COST
(PER BOTTLE)
INGREDIENTS 0.74
DISTRIBUTION 0.81
LABOUR CHARGES 0.45
TOTAL COST 2
Particulars PER DAY PER YEAR
1. Expenditure:
Variable cost:
Raw Material:
Ingredients 2220 6,66,000
Labour wages: (10 individuals) 1,350 4,05,000
Fixed cost:
Factory Building 4,50,000
Factory Machine &
Equipments,Distribution vehicle 12,00,000
Bottles(6*50,000) 3,00,000
Promotional expenses: 4,00,000
Total fixed cost: 23,50,000
PROJECTED FINANCIAL STATEMENT
BEP (sales) = Total fixed cost/unit cost
= 23,50,000/4
= 5, 87,500 Units
Unit cost = Variable Revenue – Variable Cost
=6–2
= 4.
