MITHAILITE

The following is the business plan relating to a proposed sugarfree sweets retailing
business. The executive summary and the section detailing the management team are not
included.
Introduction
Food and Beverages Industry has been growing steadily in India for the last 5 years. The
prime reason is the change in consumer lifestyles and people spending money in a big
way on eating out, together with entertainment.
The key determinants are sensory quality, shelf life, competitive pricing and category
creation by players. As a result, the affordability and palate satisfaction determine the
success of the product being offered to the consumers.
However, there is a section of people who are either restrained by some medical problem
or they voluntarily choose to stay away from certain food products. One such category
are the people suffering from Diabetes who are advised not to consume sweets and
another category are the health conscious people who prefer slim waistline and avoid
sweets so that they dont accumulate unwanted fat.
Our intention is to start sweetshops specializing in sugarfree sweets. We will be starting
with two shops; one in Chandigarh and the other in Kolkata. Later we plan to expand our
presence in these two cities and also expand into other major Indian cities. The first two
shops will be fully owned and for shops coming up later we can consider renting the
premises.
Current situation
It is important to stress upon the increasing incidence of diabetes in India. There were
193 million diabetics (2004) in the world and this number is expected to reach 324
million by 2025 (Incidence of diabetes in India underestimated' The Hindu). India tops
the list of 10 countries with major factors responsible for such a high rate of diabetics
being:
- high susceptibility
- central obesity
- resistance to insulin even with a low body mass index
The diabetics are strongly recommended to stay away from sweets and as such there has
been an increasing number who cannot afford to have sweets due to medical reasons.
Another category is the health conscious category (people in the age group of 18 35
years), who would prefer to go an extra mile so as to keep their body in shape and
consider the intake of sweets as detrimental to their health.
The Proposed Business
The proposed company shall cater to these sweets prohibited section of the society and
shall come out with the substitute of actual sweets known as sugarfree sweets

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The companys advantage would lie in the following:

- Large scale production of sugar free sweets as the demand for the same is
predicted to increase seeing the growing incidence of diabetics as well as an
increasing number of people becoming health conscious
- Perennial availability of sugar free sweets and not restricted to just special sweets
being made on festive occasions or by special orders
- Covering the wide range of sweets so as to satisfy the palate of varied sections of
society and not just restricting to 3-5 varieties of sweets
- Association with the concerned physicians and doctors so as to take their vital
inputs while deciding on the recipe of the sweets
- When buying sweets, consumers get expert advice from the doctors on how to
tackle diabetes and latest trends in the medicine market to fight against the
disease, in the form of a handout/booklet printed and given free with the sweets
- Trying to combine the doctors assistance with the palate satisfaction of the
diabetics and health conscious section of the society.
- All relevant information about the calorie intake and sugar intake to be shared
with the consumer so that he is kept in the confidence loop that by consuming
Sugar free sweets, he is not compromising on his health and certainly not adding
to his calorie intake.
- Shops to be opened on the concept of Consumer Awareness Kiosks which will
not only sell the Sugar free sweets but shall also make available the pertinent
information to the diabetics and the health conscious persons.

Objectives of the business

The objectives of the proposed business can be illustrated in the following diagram:
DIABETICS

HEALTH CONSCIOUS

WHETHER WE WOULD BE ABLE TO

TASTE SWEETS???

YES..
WE OFFER YOU
SUGARFREE
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Quantitative Objectives
Short Term: The objectives of the proposed business on short term basis can be
quantified in terms of the services offered immediately to the Diabetics who would
certainly like to taste the Sugar free sweets. As the numbers of such cases are prevalent
in India, the proposed business is well suited to cater to their palate of tasting the sweets
Long Term: The proposed business not only intends to cover the Diabetics but also
includes another important chunk of the customers who are health conscious and prefer to
stay away from high calorie food. With the spread of health awareness and changing
lifestyles, more and more people are opting for healthy alternatives. Mostly people in the
15 35 years fall into this category and this constitutes about 47% of the Indian
population
Qualitative Objectives
Short Term: The short term objectives of the proposed business would be to come up
with a one stop shopping point for Sugar free sweets of different varieties and to
maintain the perennial supply of these sweets. The model proposes to offer low calories
sweets to the Diabetics as well as to the health conscious people
Long Term: With the basic model in place, the new addition in the services can be made
by consulting the Physicians and the Dieticians who can suggest some healthy products
(sweets). This would be a value added service to the consumer who will not only get the
sweets but also the expert advice of the concerned doctors on how to deal with diabetes
and the latest trends in the medicine industry related to his disease.
Expert Advice of Dieticians

Specialized Recipe

Sugar free sweets

and health
products

DELIGHTED CUSTOMER

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Market Analsis
We shall analyze the existing market as well as the potential market for the products
being offered by the business entity.
Before we jump into the analysis, lets look into the following statistics:
-

India would have around 57 million diabetic patients by the year 2025, according
to a World Health Organisation (WHO) study
At present, in India 25-30 million are known diabetics and there may be another
20 million who do not know that they have diabetes.
Diabetes is more prevalent in Urban areas as opposed to Rural areas, While 10
to 12 per cent of the urban population were inflicted by the disease, in rural area
the percentage was three to four per cent
India has the highest number of diabetes patient in the world
As per Research Society for the Study of Diabetes in India (RSSDI) President
Prof K M Prasanna Kumar, diabetes would dominate all other health issues in
India.
It is recommended that men should consume no more than 70g of sugar daily,
while the daily limit for women is 50g

The prescribed instructions for a diabetic patient as far as his/her diet is concerned are:
AVOID simple carbohydrates like sugar, sweets, jaggery, honey, etc., as they tend to
cause a sharp rise in the blood glucose levels
A significant concern that emerges from the market survey is a s follows:
- An increasing number of dietary supplements specially formulated for diabetes
patients are available in the market.
- When prescribed, one must be aware of the precise contents, as many food
supplements called diabetic foods are not safe for diabetics and mislead patients
into thinking that such diabetic foods can be taken in any quantity
Overall Sweets Market
Sweets are very integral to the Indians diet. For every occasion, be it festival or marriage
or anniversary or any celebration, various kinds of sweets will find their place in
satisfying the craving for something sweet.
The use of sweets is so prevalent that we can find numerous shops in one particular
market area.
It is estimated that during festival seasons like Diwali, Durga Puja, etc. the daily sale
from a single sweets shop can be anywhere ranging from 40,000/- to 65,000/As is evident from the above facts, the overall market for sweets exists and there is
tremendous scope for growth if any business entity is able to offer a unique mix of sweet
products and caters to the demands of the consumers.
Specific Market

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It is not that Sugar free sweets are not available in the market. But, most of the vendors
are making these sweets on Order basis or during special festive occasions. This leads to
non perennial supply of such sweets. The salient features of the specific market are:
-

Sugar free sweets are offered by very few vendors presently and that too on
special occasions only
High premium is charged for this category of sweets. For example, normal Kaju
Katli is available between 240 260/- per kg whereas the existing vendors
supplying Sugar free Kaju Katli charge around 320 350/- per kg
Another example is BAKERS BASKET (in Mumbai) which uses natural purees
made from fresh fruits that substitute sugar
Chains like Monginis and Copper Chocs are planning to launch a whole new
range of sugar-free pastries
At MITHAAS (in Mumbai), the anjeer burfi costing Rs 400/- per kg is fast flying
off the shelves

As can be seen, the demand for the sugar free products is on the rise and the new players
are entering into the foray to tap the unexploited market.
Competitive Factors
The business of selling Sugar free Sweets will be facing the competition as there are
existing vendors who have been supplying the sugar free products. But the competitive
edge of the proposed business lies in:
- ensuring the perennial supply of the Sugar free sweets
- extending the varieties of sweets which can be made in sugar free form
- combining the sale of Sugar free sweets with the expert advice of physicians and
dieticians
- nationwide presence to cater to the demands of various regions
The major competition for this business would be from:
-

Already existing vendors who have been selling sugar free sweets and have
developed expertise in the making of such sweets
Few online vendors are marketing extensively, for example
o eshop.webindia123.com/shop/category/indian_sweets/sugar_free_sweets
o shopping.indiaresults.com/shop/category/indian_sweets/sugar_free_sweets
o gifts.netkushi.com/shop/category/indian_sweets/sugar_free_sweets
Players like HALDIRAMs and GOPALJEE, who have established a brand for
their products, can easily come up with similar offerings. They can utilize their
extensive distribution network to reach the customers at lower costs
Local small shop vendors who can readily customize their offerings into Sugar
free sweets and capture the consumer segment in the vicinity of their location

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Opening up of the outlets in key areas will be a critical decision and as such
existing players are already in those places, they can use some strategies to drive
away the competition faced by the proposed business entity

Some indication of the existing products and their associated prices is as follows:
1)
2)
3)
4)
5)

Sugar free Khajur Burfi: Rs 250/- per kg

Sugar free Nut Khut: Rs 325/- per kg
Sugar free Anjir Burfi: Rs 325/- per kg
Sugar free combo: Rs 600/- per kg
Sugar free Rasgulla (Tin pack): Rs 200/- per kg

Macroeconomic Factors
The various factors which can retard the growth of this segment in the Foods &
Beverages Industry are defined as below:
- Poor Infrastructure: The F&B business is dependent on power and water, and
there seems to a constant lack of it making the owners resort to generator sets and
water tanks which push up investments by at least 20 per cent
- Government Policies: F&B business owners are up in arms against the
government policies and uncompromising officials. Recently, the government
increased the service tax burden on franchisees, and imposed burdensome tax on
all food products. The service tax on franchise fee has been increased from 8 to 10
per cent with an additional 2 per cent as educational cess on service tax
- Red Tapism: Rules are either decades old, or are misconstrued to suit the officer
coming to check his own allegations
Product Development and Production
Stages of Product Development
As per definition, A sugar substitute, or artificial sweetener, is a food additive which
duplicates the effect of sugar or corn syrup in taste, but often with less food energy.
These are compounds whose sweetness is many times that of sucrose; accordingly, much
less sweetener is required and energy contribution often negligible. The sensation of
sweetness caused by these compounds (the "sweetness profile") is sometimes notably
different from sucrose, so they are used in complex mixtures that achieve the most
natural sweet sensation.

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Five artificially derived sugar substitutes have been approved for use. They are
saccharin, aspartame, sucralose, neotame and acesulfame potassium. Another important
group of non-sugar sweeteners are the polyols. These are generally less sweet than
sucrose, but have similar bulk properties and can be used in a wide range of food
products.
There are two main types of sweeteners. The intense sweeteners such as acesulfame K (E
950), aspartame (E 951), salt of aspartame-acesulfame (E 962), saccharin (E 954),
cyclamates (E 952), thaumatin (E 957), neohesperidine DC (E 959) and sucralose (E
955). The bulk sweeteners like sorbitol (E 420), mannitol (E 421), isomalt (E 953),
maltitol (E 965), lactitol (E 966) and xylitol (E 967). Intense sweeteners are typically
used as table top sweeteners and in beverages and are so intensely sweet that only a tiny
amount is needed. The bulk sweeteners provide fewer calories weight for weight
compared to sugar while having the same bulk or volume. Bulk sweeteners are useful for
example when preparing low-calorie bakery products.
The three primary compounds used as sugar substitutes in the United States are saccharin
(e.g. Sweet'N Low), aspartame (e.g. Equal, NutraSweet) and sucralose (e.g. Splenda). In
many other countries cyclamate and stevia are used extensively.
Natural sugar substitutes
1. Brazzein Protein, 2,000x sweetness of sucrose (by weight)
2. Fructose 1.7x sweetness (by weight and food energy), 1.0x energy density of
sucrose
3. Glycerol 0.6x sweetness (by weight), 0.55x sweetness (by food energy), 1.075x
energy density, E422
4. Hydrogenated starch hydrolysates 0.4x0.9x sweetness (by weight), 0.5x1.2x
sweetness (by food energy), 0.75x energy density
5. Isomalt 0.45x0.65x sweetness (by weight), 0.9x1.3x sweetness (by food
energy), 0.5x energy density, E953
6. Lactitol 0.4x sweetness (by weight), 0.8x sweetness (by food energy), 0.5x energy
density, E966
7. Mabinlin Protein, 100x sweetness (by weight), Exxx
8. Sorbitol 0.6x sweetness (by weight), 0.9x sweetness (by food energy), 0.65x
energy density, E420
9. Stevia 250x sweetness (by weight)
10. Thaumatin Protein, 2,000x sweetness (by weight), E957
Artificial sugar substitutes
1. Acesulfame potassium 200x sweetness (by weight), Nutrinova, E950, FDA
Approved 2003
2. Aspartame 160-200x sweetness (by weight), NutraSweet, E951, FDA Approved
1981
3. Aspartame-Acesulfame-Salt 350x sweetness (by weight), Twinsweet, E962
4. Neohesperidine dihydrochalcone 1,500x sweetness (by weight), E959
5. Neotame 8,000x sweetness (by weight), NutraSweet, FDA Approved 2002

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6. P-4000 4,000x sweetness (by weight), FDA Banned 1950

7. Saccharin 300x sweetness (by weight), E954, FDA Approved 1958
8. Sucralose 600x sweetness (by weight), Tate & Lyle, FDA Approved 1998
(Source: www.wikipedia.com)
Basically, the two main types of non-caloric sweeteners are:

SACCHARIN

ASPARTAME

Use by diabetes allowed in

moderation (10 -12 tablets per
day); fear that its use may lead to
cancer is misplaced, especially if
used in moderation; each tablet
contains
12mg
approx.,
permissible doses upto 500mg per
day in children and upto 1000
mg/day in adults; such high
intake not advisable; non caloric;
may leave a bitter after taste,
avoid in pregnancy

Use by diabetics allowed in

moderation (10 - 12 tablets per
day); fear that its use may lead to
cancer, mental retardation ,
menstrual irregularities, etc., is
misplaced if used in such small
doses; each tablet contains 18mg
of aspartame approx., permissible
doses upto 50mg/kg/day; such
high intake not advisable;
technically does have calories,
but so sweet that in amounts used
, can be considered non caloric,
avoid in pregnancy and in
patients with phenylketonuria.

A sweetener can be used on its own or in combination another to create varying degrees
of sweetness. For example, low-calorie sweeteners can be combined with polyols, a
group of low calorie, carbohydrate-based sweeteners. Polyols deliver the taste and texture
of sugar with about half of the calories and are commonly used in sugar-free chewing
gums, frozen desserts and baked goods.
Production Process
The production process would be somewhat identical to the regular making of the normal
sweets but instead of sugar, the additives, mainly aspartame shall be used
The baking process as well as making the dough for the sweets shall be changed to align
with the use of artificial sweetener
The typical resources needed for making the varieties of Sugar free sweets would be:
-

Recipes for making the eatables, which have to be developed after seeking the
professional advice of the Physicians as well as the Dieticians
Raw material for making the sweets such as Maida, Wheat, Cashews,
Groundnuts, Vegetable edible oils, butter, etc

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Artificial sweeteners which would basically be Aspartame in our case

Expert cooks who can make the delicacies
Kitchen area to make the Sweets
Storage of sweets at appropriate place before they are sent to the shops
Supervisor who shall monitor the quality parameters for the manufacturing
process

The Sugar free Sweets take almost the same time to manufacture as the normal sweets.
Only consideration is that such Sweets shall be consumed within a stipulated period to
preserve the freshness and taste. This consumption period is generally smaller as
compared to that of normal sweets

Risks Associated With Sugar Free Products

There are certain risks associated with the use of Sugar free Sweets which are described
as below:
-

Condensation on milk may cause the sugar to dissolve and rise to the surface as
sugar bloom. Bloom affects neither the quality nor flavor, since once melted,
the sweet will regain its original color
Shelf life of the Sugar free Sweets is very less. The sweets have to be consumed
within the stipulated time period (30 36 hours) so as to have them fresh and
tasty

Quality Program
To become a successful player in the competitive market, the proposed business entity
believes in applying quality checks at various steps, right from the process of procuring
the raw materials to the delivery of sweets to the consumers. Following measures shall be
implemented:
-

Technology would be forefront in the plant and most of the processes shall be
done on machines, thus minimizing the human involvement
Emphasis on the hygiene factor in the manufacturing processes
Sourcing of raw materials only after thorough quality checks
Employing Quality professionals to monitor the manufacturing process so that the
sweets reaching the consumer have the right taste

Pilot Testing
The proposal is for providing the consumers a unique experience when they come to the
shop to buy sweets.
A dedicated R&D team comprising of the cook, the dietician and perhaps the feedback
from the consumers, shall determine the right mix of the Sweets and would suggest
measures to come up with unique offerings. Such offerings shall be tested within the

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plant first, and then to certain section of trusted consumers and after they approve of the
quality and taste, the sweets shall be released in the market.
Such a step ensures that the consumers are served with the best offerings to satisfy their
appetite for the sweets.
Marketing Strategy
The proposed business aims to provide the following value proposition:
-

Sugar free sweets of different varieties, available throughout the year and not just
during the festive season
Experts advice, mainly the Physicians and the Dieticians who will play an
important role in deciding the recipe and also share the latest trends in the
medicine industry with the consumers

So, what a consumer gets is: Sweets with almost zero calories and expert knowledge
sharing about how to tackle Diabetes and also how to lead a healthy life
Overall Concept
The target audience for the products offered by the business entity will be able to enjoy
the following benefits:
-

large varieties of Sugar free sweets

perennial supply
location of the shops in the key market places
expert medical advice when you buy the sweets
a concept which combines the appetite satisfaction with knowledge sharing about
diabetes and healthy life
support of expert team of doctors to assist in the recipe

Before we jump into the marketing strategy, let us define our customers. The proposed
business would cater to the following sections of consumers:
-

People suffering from Diabetes (in all age groups), roughly estimated to be 15
million in India (in urban sector)
Health conscious people, who would prefer to have slim waistline instead of
indulging in the consumption of high calories sweets (age group is 15 35 years),
constitute about 48% of the Indian population

The marketing strategy can be broadly discussed in the following framework:

Product:

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The product offering would not only include the common sweets like rasgulla, kaju katri,
anjir burfi but also region specific specialities. For example, the shop in Punjab may have
besan laddu, milk cake, etc on its shelf.
The aim is to provide the consumer a wide array of products so as to satisfy his palate for
sweets to the maximum extent possible.

Price:
The existing vendors are charging a high premium for this category of sweets. For
example, normal Kaju Katri is available between 240 260/- per kg whereas the existing
vendors supplying Sugar free Kaju Katri charges around 320 350/- per kg. Details have
been given in an earlier section.
The business proposes a different pricing model where it aims to lower the prices by 1020% and this can be achieved by producing the sweets in bulk quantities and having
many shop outlets to serve the customers
Aggressive pricing with somewhat lower premium shall be pursued to tap the existing
and potential market segment.
Place:
The location of the shop outlets shall be based on the following parameters:

Level of interest, personal involvement and experience,

survey of eating habits of inhabitants in the area,
availability of ample parking space,
commercial inhabited premises with offices and shops,
sales growth opportunities
mystery customer visits

The intention is to have minimum 2 shops in the metros and one shop each in the fast
growing cities (based on the per capita income). The customer should not feel that the
shop is not in the proximity; hence the location of the shop shall be based on the easy
approachability of the consumers.
Promotion:
Various channels of promotion can be used to create a place in the minds of the
consumers. Promotions have to be designed so as to be in the top of the mind of
customers of the prospective consumers:
- Actively advertising in the local city cable transmission
- Advertisements in the local newspapers
- Periodic discount sales to invite the prospective clients and showcase them the
unique value proposition
- Spreading the unique value proposition through every feasible channel to reach
the consumers
- Corporates can be approached with heavy discounts to start with
- Bookings for marriage orders on the premise that the quality of the service would
be good and also very much presentable

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Online advertising to tap the younger and more informed section of the society
Sending discount coupons to the nearby localities
Arranging for grand weekends where varieties of sweets shall be introduced and
consumers asked to try and taste them

Sales Forecast
Let us look into the sales forecast data for two cities:
Chandigarh:
-

approx target segment: 30, 000 to 54, 000 people

current sales for normal sweets shop in a busy shopping area: 5,000/- to 12,000/per day
projected sales for the proposed Sugar free sweets from one shop in the same
area: 3500/- to 10,000/- per day
growth of consumers expected (over one year): 2.5 4.0 %
consequently, with the promotion schemes, the daily sales can reach upto 15,000/to 18, 000/-

Kolkata:
-

approx target segment: 78,000 100,000 people

current sales for normal sweets shop (two in number) in busy shopping area:
18,000 30,000/projected sales for the proposed Sugar free sweets from the 2 shops in the same
focal area: 15,000 30,000/growth of consumers expected: 5%
consequently, with the promotion schemes, the daily sales can reach upto 19,000/to 35, 000/-

Pricing Model Suggested

The proposed business is looking at the following pricing model:
-

to cut down on the premium by 15-20% and sell the sweets at relatively lower
prices
to combine the large production with better sales using promotions, etc so that the
lowered price is justified
to implement the quality standards in the manufacturing process so that the
operating costs are reduced and hence pass the savings onto the consumers

Financial Statements/Financial Analysis

Initial Investment

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Let us take an example of setting up the shops in 2 cities:

Chandigarh:
-

Shop area (Floor area): 1000 sq feet

Buy rate for the shop area: 5000/- per sq foot
Total spend on buying the floor space: 5000*1000 = 5000000/Shop Interiors (including furniture, etc): 800000/Government clearances, miscellaneous expenses: 200,000/Factory area (assume it is rented): 2000 sq feet
Deposit: 300000/Cost of machinery: 200000/Promotion expenses to advertise in local channels, newspaper, etc: 200000/Working capital: 50000/-

Hence total initial amount: 7200000/Kolkata:

-

Shop area (Floor area): 1000 sq feet

Buy rate for the shop area: 7000/- per sq foot
Total spend on buying the floor space: 7000*1000 = 7000000/Shop Interiors (including furniture, etc): 1000000/Government clearances, miscellaneous expenses: 200000/Factory area (assume it is rented): 2500 sq feet
Deposit: 300000/Cost of machinery: 200000/Promotion expenses to advertise in local channels, newspaper, etc: 250000/Working capital: 500000

Hence total initial amount: 9450000/The layout of the shop will have following features:
- approx 20-30% area would be covered by the Sugar free sweets display
- another 20% area would be dedicated to the entry and exit
- 40% area for the sitting space
- 20% area for seeing the sweets and deciding on what to order
Cost of Raw Material
Let us take an example to estimate the cost of making one piece of rasgulla:
Cost of manufacture of 1 piece of rasgulla using normal sugar approx comes out to be
around Re 0.50
Sale price of one piece in the shop = 5/So margin is: 4.50/-

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Now, take the case of Sugar free rasgulla

Cost of manufacture of 1 piece of rasgulla using sugar substitute (aspartame) approx
comes out to be around Rs. 1.50/Sale price of one piece in the shop (at premium): 10/So margin is: 8.50/Ps: People would be ready to pay higher price for the sugar free rasgulla as it concerns
their health and its high price is justified
Our Strategy
Reduce the premium charged from 10/- per piece to say 8.50/- or 9/- , still you would be
able to earn the margin of about 7.00/- to 7.50/-

Cash Flows
The actual cash inflow happens due to the margin generated on selling one piece of the
Sugar free sweets. But, the initial 1-2 years cash flow may be negative due to the
following reasons:
-

company is moving from nascent stage to growth stage

major chunk of cash flow is used in paying the loan back/interest payment
cash flow is utilized to settle the land purchase payments, etc
promotion expenses in the intial few years would be high

Breakeven Analysis
The proposed business intends to reach the break even point within 2 years of its
operations. The initial 2 years will be used to fulfill the loans, land payment obligations
and then, once the business stabilizes, the positive cash flow starts and break even point
is reached.
Capacity utilization has to be increased continuously to reach the break even point early
and sales revenue has to be realized in a growing manner
Financial Strategy
The following are the potential sources for the funds:
-

Initial investment by the owner 30 lakhs

Unsecured loans from friends and family 20 lakhs
Remaining amount required 1.165 crores
Banks can be approached for the term loans
Financial agencies (like Citifinancial, ICICI, etc) can be approached

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Money against the collateral can be collected from other agencies

Personal guarantees can be used to raise the money
Approach SMERA (a collaboration of SIDBI, CIBIL, D&B) to obtain the rating

Use of Funds
The primary use of the funds channelized through the various agencies would:
- to open new shops
- to rent the factory
- to invest in the machinery
- to bring in new technology which is both efficient and cost effective
HRM Strategy
Initial estimates suggest that around 3 expert cooks, 5 helpers, 6 store personnel and 1
dietician would be required for each store. Some economies of scale will come in after
expansion.
Key hunting ground would be the cooks already working in other factories and pay them
10% higher. Dieticians and physicians can also be hired on a part-time basis.
Key Personnel
Following key personnels would be required to manage the proposed business:
- Shop Manager, who is solely responsible for the normal functioning of the shop.
- Factory Manager, who manages the production work
- Quality Manager, to assist in the best quality practices and reduce overhead costs
- Feedback Manager, to work on the feedback collected from the consumers and
come out with innovative solutions
- Dieticians and Physicians, who can be hired on ad hoc basis

Tentative Schedule/Milestones
Below listed is the tentative schedule for starting the business enterprise and start
realizing the cash flows:
- Completing licensing /permit requirements: 20 25 days
- Completion of site location/R&D activities: 2 months
- Completion of finalizing the product mix being offered: 1 month
- Purchase/Lease of facilities: 1 month 3 month
- Interiors and other additional construction: 2 months
- Hiring of personnel: 15 20 days
- Begin production: (from today): 6 months
Questions:
1. What do you think about the business?

Pages 495-512, Entrepreneurship by Rajeev Roy, Oxford University Press, 2008

Copyright Rajeev Roy - Associate Professor, XIMB. All rights reserved.

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2. Has it been researched thoroughly? What other information would be needed?

3. Do you like the way the business plan has been organized? Would you like to make
some changes to it?
4. Make the projected balance sheets, profit and Loss accounts, cash flow statements
and breakeven analysis on the basis of the information given above. Make reasonable
assumptions where needed.
References:
1. Artificial Sweetners by Department of Health Sciences; University of North British
Columbia, 2005
2. Nothing Sweet About it by Chandrashekhar Nopany; Businessworld, 12-2-07
3. Recipies from Uppercrust magazine
4. http://www.webmd.com
5. http://www.wikipedia.com

Pages 495-512, Entrepreneurship by Rajeev Roy, Oxford University Press, 2008

Copyright Rajeev Roy - Associate Professor, XIMB. All rights reserved.

Page 16 of 16