=

E-Groceries
Group 9

Indrajeet Rao 1620626

Namitha Girish 1620649
Aadira Gopukumar - 1620645
Shreya Agrawal - 1620656
Yugal Jain - 1620674
Executive Summary

E-Grocery.com is focused on online grocery retail business. It plans to connect millions of

household customers with distributors. eGrocery.com is an online portal available 24 X 7 to the
internet friendly customers. It is a virtual online market place facilitating easy buying and selling
of groceries. eGrocery.com aims to tap the growing Indian consumer goods market.
eGrocery.com plans to start with its presence in six major cities in India namely Delhi, Mumbai,
Kolkata, Chennai, Bangalore, Hyderabad and then increase its regional base to more cities in
India.

This business plan talks about the company information in terms of Vision, Mission,
Objectives, and Values. This document describes the basic business model describing the
categories of business, details of the processes and salient features.

The operations describe the operations, logistics involved and the SCM in details. How
we optimize it to give best value to the customers. It also talks about the inventory
management and type of operations model we use.

The market analysis gives us the clear picture of the present situation and how we handle
the situation for our benefit. How we form a brand and spread the awareness customers.
The marketing also segregates the customer segment and how we reach them. It also talks
about the advertisement strategy.

The financials take care of the capital estimation, breakeven analysis, and profit
estimation. It also talks about the fund sourcing, fund distribution and growth strategies.
The financials also include the exit strategy.

We believe eGrocery.com as a disruptive technology destined to remove the traditional

way of trading way of trading not only in India but also all over the world.

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Table of Contents
1. Company Information ........................................................................... 4
1.1 Vision .................................................................................................................. 4
1.2 Mission ................................................................................................................ 4
1.3 Objectives ........................................................................................................... 4
1.4 Values ................................................................................................................. 4
2. Business Model ....................................................................................... 5
2.1 Categories of Business ........................................................................................ 5
2.2 Business Process ................................................................................................. 5
2.3 Revenue Model ................................................................................................... 8
3. Operations ............................................................................................... 9
3.1 Operations Model................................................................................................ 9
3.2 Time slots for delivery ...................................................................................... 10
3.3 How we managed our inventory ....................................................................... 10
3.4 Transportation cost............................................................................................ 11
3.5 Logistics network .............................................................................................. 12
4. Marketing Strategy .............................................................................. 13
4.1 Situational Analysis .......................................................................................... 13
4.2 Our Offerings .................................................................................................... 13
4.3 Market Segmentation ........................................................................................ 14
4.4 Advantage relative to competition .................................................................... 15
4.5 Market readiness of technology ........................................................................ 15
4.6 Advertisement Strategy ..................................................................................... 15
5. Technology behind eGrocery.com ...................................................... 16
5.1 Features in eGrocery.com system ..................................................................... 16
5.2 Architecture....................................................................................................... 16
5.3 Operating System .............................................................................................. 17
5.4 Hardware Specifications ................................................................................... 17
5.5 Security ............................................................................................................. 18
5.6 Other systems .................................................................................................... 18
6. Financials .............................................................................................. 19
6.2 Capital Estimation ............................................................................................. 19
6.3 Fund Distribution .............................................................................................. 21
6.4 Fund Sourcing ................................................................................................... 22
6.5 Break Even Analysis ......................................................................................... 22
6.6 Profit Estimation ............................................................................................... 23
6.7 Future Growth Strategy..................................................................................... 23
6.8 Exit Strategy...................................................................................................... 23

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1. Company Information
eGrocery.com is focused on online grocery retail business. It plans to
connect millions of household customers with distributors. eGrocery.com
is an online portal available 24 X 7 to the internet friendly customers. It is
a virtual online market place facilitating easy buying and selling of
groceries. eGrocery.com aims to tap the growing Indian consumer goods
market. eGrocery.com plans to start with its presence in six major cities in
India namely Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad
and then increase its regional base to more cities in India.

1.1 Vision
eGrocery.com is a web start up with limited resources but it align all its
strategies keeping in mind the following visions:
To make eGrocery.com available all over India.
To be the largest indigenous e-Commerce portal in India.

1.2 Mission
Our mission is to provide a online platform where people can shop for
groceries along with door step delivery. eGrocery.com taps the unattended
needs of the people who does not find traditional trading convenient due to
many unavoidable reasons. Our foremost mission is to provide
convenience to the customers followed by best value for money backed by
quality and satisfaction.

1.3 Objectives
The main objectives of eGrocery.com are as follows:
To serve our customers flawlessly.
To built a stable and effective network between the distributors,
wholesalers, retailers and the household customers.
To build a effective sustainable technology.
To give our customers the best value for money and quickest service.

1.4 Values
We aim to build our business along the path of great values and business ethics
which includes:
Integrity
Leading Change
Excellence
Quality
Respect for Individual
Learning
Sharing

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 2. Business Model

eGrocery.com is a common platform where the distributors, retailers and wholesalers can supply
to the needs of the household customers. eGrocery.com enables a greater market reach to the
suppliers and convenience to the customers.

It provides a online platform for household customers to choose from a wide variety of products
listed by the suppliers (distributors, wholesalers, retailers). It also allows the suppliers to enlist their
products to ramp up their sales by increasing their reach. This portal also acts intermediately between
the distributor and wholesalers or retailer to supply goods that are unavailable locally.

2.1 Categories of Business

The main model of business can be categorized into two major divisions according to the
customer segment and the type of their interaction with the suppliers.

Business to Customers (B2C)

This is meant for household customers. This model is built around providing
convenience, quality and best value for money to the end users. The customers can
browse through the catalogs and see the different items listed by the suppliers. The
customer orders the selected items and we deliver the product on their doorsteps. This is
our main focus and we concentrate all of our initial resources at this.

Business to Business (B2B)

This model is meant for the wholesalers and retailers who need some items which are
unavailable in the local market. This is for bulk shipments and we charge the customers
for the shipment. This is not our primary goal. So as a web startup we dont start with this
but we definitely plan to implement this in the future.

2.2 Business Process

The business process for the eGrocery.com is very simple. The Process can be segregated
into the following sub categories:-

1. Buying Process
2. Selling Process

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2.2.1 Buying Process
This process allows users to search and buy different products listed by sellers.

1. Register 2. Browse 3. Select 4. Payment 5.Feedback

Registration
To buy on eGrocery.com one must be a registered user. It's fast, easy and free. As a registered
user, they can shop and place orders on eGrocery.com. The registration involves the following
steps:
1. Contact Information
2. UserID & Password Creation
3. Email Confirmation

Browse
Browsing is clicking through lists of titles called categories until one find something they are
interested in.

Select
Before one buys or place an order, they can know about the item and seller to make an informed
decision, pay attention to the:

Listing information
Product details
Shipping and payment details
Seller information

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 Payment
After the buyers have selected their products they are given a choice of selecting their payment
mode/method. There are many payment methods and most sellers offer more than one. Some
methods offer more protection than others.

Listed below are the most common payment methods:

Demand Drafts
Cash on Delivery (COD)
Buyer Pays and Picks Up
Cheque

Feedback
Feedback is made up of comments and ratings left by members who have bought from and sold
to. Once you have received your item, it is time to leave feedback for the seller and the item,
letting future buyers know about your experience with the seller.

Type of information typically included in seller feedback:

Satisfaction with the item
Quality of communication
Quality of packaging
Promptness of shipping
Courteousness

2.2.2 Selling Process

This allows the retailers, wholesalers and distributors to enlist themselves and their products to
reach to the customers. The following flow chart explains the process.

Supplier Registration
The supplier must enlist themselves by registering themselves with a fixed cost amount.The
registration involves the following steps:
1. Contact Information
2. UserID & Password Creation
3. Email Confirmation

Enlist Products
The supplier must enlist their products with appropriate details, pictures, description, prices etc. Each
product enlistment requires an one time cost.

Manage Products
The suppliers are allowed to modify their entries which are already listed.

Feedbacks & Remarks

The feedbacks from supplier are taken to improve the process.

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2.3 Revenue Model

The revenue model of eGrocery.com is very simple. eGrocery.com does not charge any customer
for browsing. The browsing is made free of cost. The revenue model can be segregated onto the
following sub categories, namely:

1. Registration Fee
Manufacturers or Distributors pays annual rent for registering to eGrocery.com. In order to
enlist their products or to put any kind of advertisements the companies must be registered.
This is a fixed rent.

2. Listing Fee
Manufacturers or Distributors pays annual rent for listing each product. This is a variable rent
calculated keeping the cost and various other factors in mind.

3. Service Charges

Shipment eGrocery.com charges a nominal amount for shipment of products to the door
step. This depends on the distance and amount gradation.
Maintenance eGrocery.com also charges a percentage of the order for maintenance of
its business.
Discounts eGrocery.com offers discounts to all of its deals depending on the time and
volume of orders.

4. Advertisements
eGrocery.com allows different advertisements which is also a source of revenue.

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3. Operations
Our operations are carried out according to two approaches:

Business to Business (B2B)

In this category we are developing one to one customer relationship. Here customers are
the wholesalers & retailers. When it comes to a business it does not account for a single
decision making unit, because there is a great difference between selling to an individual
and selling to a business. Our business is composed of a number of distinct individuals
and many different people will likely to have an influence on the decision making
process.
We are maintaining our relationship with the wholesaler, as a customer to go deeper to
maintain relationships with individual decision makers. We are not viewing our success
just in terms of how many new customers we can acquire but in terms of how deeply we
can penetrate our current customer accounts. Through this approach we are directly
connecting the manufactures to wholesalers and retailers and being as an intermediary
service provider we are gaining our share. We are reducing our inventory by establishing
a closer communication process with the suppliers in terms of input needs and
procurement time frames.

Business to Customers (B2C)

As in this category our consumers do not care how the order is fulfilled so we have
designed our own supply chain. In this category we are selling hundreds of thousands, so
we are keeping our eye on statistical analysis of our customer base to figure out whats
going on at any point in time with any particular type of customer.

3.1 Operations Model

3.1.1 Stock it yourself model

In this we are maintaining our integrated warehouses that are able to handle shipments to web
customers, so by keeping the warehouses we are fulfilling the orders. Through this we have full
control over the fulfillment process. As we are starting a new business, so we have kept limited
number of warehouses in limited cities and in limited areas.

3.1.2 Outsourcing warehouse model:

In this we are using logistics specialists Federal Express (FedEx) which do the work of
stockpiling and shipping web orders. So once an order comes into our site it is
automatically transmitted to its warehouse and directly shipped to the customer through
FedEx.
We also have fulfillment intermediaries that will take care of all back office operations
such that they process orders, direct orders to suppliers, keep updating customers on their
order progress and handling product returns and cancellations.
We included some of them:

Firefly (customer profiles) as Seller agents

They will make markets more accessible to providers
Cyber Cash & Verisign
They are payment enablers which handle purchase transactions and their related
funds transfers, as well as risk management.

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 3.2 Time slots for delivery
We have different time slots depending upon the demand of the customers. They are categorized
as:
2 HOUR
This is the best time slot provided by us and it will deliver the products within 2 hour
after the order is placed. In this category we will not provide any discounts as the service
level is highest in this category. This will target mostly the working people who dont
have time and they just order when they want any product.
6 HOUR
Customers will get a certain minimal amount of discount in this time slot. This will target
the family based customers who plan to make something few hours later and need the
products in a few hours of time. They will be generally middle sized customers.
1 DAY
Quite a god amount of discount would be given to these customers as they are just
directly reducing good amount of transportation cost i.e. from warehouse to warehouse or
from warehouse to consumers. These customers are also the family based customers but
their demand is slightly flexible than the previous time slot. This will target customers
who are middle-sized and above.
2 DAY
This will mainly target the upper segments that are used to keep product stock. They will
be benefited maximum discounts as the transportation costs are least here because time to
deliver products is too large. In this much time several orders can be seen in the places
around the ordered places.

3.3 How we managed our inventory

This is a key term in terms of cost effectiveness. It is the direction and control of activities with
the purpose of getting the right inventory in the right place at the right time in the right quantity in
the right form at the right cost.
We optimized our supply chain by keeping the inventory level very low by using certain
techniques such as fluctuation inventory, lot size inventory & cost of placing orders. We are
maintaining lower inventories from the 2 hour & 6 hour time slots because these orders are
smaller in quantities and carry lower inventory costs.

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3.3.1 Fluctuation inventory
This is introduced in our inventory management with apurpose of
preventing disruptions in deliveries to customers. We have maintained a
buffer stock which will protect against fluctuations in supply and demand
and lead time and it will also remove stock out situation.

3.3.2 Lot size inventory

We are purchasing items in quantities greater than needed to take
advantage of quantity discounts, to reduce shipping and setup costs. This
portion of our inventory depletes gradually as customers orders come in
and is replenished cyclically when new orders are received. Depletion is
done according

3.3.3 Cross docking

In this strategy we are moving our goods directly from our warehouses to
consumers. This distribution strategy we have applied in which the
customers and distributors are supplied (in case of B2C & B2B) by central
warehouses which act as coordinators of the supply process and as
transshipment points for incoming orders from distributors and consumers
but in this strategy we are not keeping any stock. We are moving goods
from one truck to another set of trucks. In some cases we take off pallets or
boxes containing items from incoming truck and move directly to outgoing
truck to avoid inventory cost. This technique is mainly used for the larger
time slots that are 1 day & 2 day.

3.3.4 Refresh inventory

We are constantly refreshing our inventories through the received orders
and products coming from the distributors. When a new lot of product
comes to the warehouses then we send those products to the customers
which are already present in our warehouses and through the various time
slots we are continuously refreshing our inventories.

3.4 Transportation cost

This includes the cost of moving the items from the warehouse to
warehouse and warehouse to consumers. As seen from the diagram given
below we have two slots for the transportation costs. The overall
transportation cost is thirty one percent of the total capital estimation:
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3.4.1 Warehouse to warehouse
It includes cost of moving the items from one warehouse to other. This will
mainly occur when the cost of moving goods from distributor to
warehouse is high than the cost of moving products among the
warehouses. Example, when one consumer demand for any variety of
products and its not available in the nearby warehouse, then we order the
product from the nearby warehouse to avoid the high cost of ordering
product from the distributor.

3.4.2 Warehouse to customer

This includes the cost of shipping the products from the warehouse to the
customers. As shown in the graph we have warehouses in the areas where
the demand is high and if some item will not be available in the nearby
warehouse then we will ship that item from the next nearby warehouse. If
the time slot is in 1 day or 2 day then we will ship the items directly from
the distributors using the cross docking strategy.

3.5 Logistics network

Our logistics network helped to integrate our companys activities by:

1) Mirroring the marketing mission of the company

2) Improving the efficiency of material and information flows
3) Bringing sub-systems together
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4. Marketing Strategy
eGrocery.com is first of its kind in India. It targets a niche category of customers with specific
needs. The needs of the market which was unattended by traditional practices are needed to be
catered. First there must be an awareness spread across the population for converting the needs to
demands. The marketing strategy is made to sustain the business. eGrocery.com is a disruptive
technology destined to topple the traditional practices. The marketing strategy will be aligned
with the vision and mission to reach our objectives.

4.1 Situational Analysis

The traditional practice of buying grocery is characterized by:
1. Manual Process
2. Time Consuming
3. Does not give best value for money
4. Time constrained
5. Inconvenient
6. No Quality Assurance
eGrocery.com home delivery services can be as much as 43% cheaper than compared to current
costs of customers visiting the store using their our car and spare time. Most of the e-groceries are
making home deliveries using a third party service provider, but we are giving through our
personal delivery van and executives.

4.1.1 Unmet Customer Needs

We have identified the following pain points in the industry that eGrocery.com can get away with.
1. Convenience
In this fast paced life of metros customer does not have time to drive down to the shop and
get the groceries. The drive takes petrol and time along with traffic frustrations. The customer
needs convenience of door step delivery.
2. Quality
The traditional system does not assure quality. We plan to operate at 6 sigma and we would
replace any defects and customer satisfaction is our top priority. Degradable quality leads to
hassle, inconvenience. Customers do not need those so we aim to take care of these
requirements.
3. Value for Money
eGorocery.com promises a great value for money for all its offerings. It promises the cheapest
deals in the market than any other methods as we provide discounts for all deals.

4.2 Our Offerings

Our offerings are very simple. The offerings can be categorized into the following categories:

4.2.1 Offerings to Suppliers

Our offerings to the suppliers are very lucrative at a minimal cost.
1. Greater Reach
2. Greater sales volume
3. Easy access

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4.2.2 Offerings to Customers
Our offerings to the customers are:
1. Convenience
2. Timely delivery
3. Cheapest Deals
4. Quality Assurance
5. Value for money

We can get the sweet

spot of the market.
Market opportunity
analysis is
complicated. There
are many competitors
and even some
technology which are
not right technology
currently running in
the market. We have
clearly differentiates
our business in the
eyes of our current
and potential
customers or clients.
We focused our team
on delivering the
promise of the
previously unmet
promises by our
competitors, helping
to improve our
internal performance.

4.3 Market Segmentation

We have identified the customers for our business:
Customers are aged between 23years and above.
Customers whose house hold income is > Rs15,000/- Per Month.
If any customers are having dual income households.
Customers / households with children.
Customers with education level above Bachelors, since they have
to be educated about internet and its usage.
Consumer who are looking for convenience; that means they do
not want to invest time in traveling and shopping.
Average commute time to work of customers.
Customers number of households with internet access and its
awareness.
Customers & adults with credit cards access.
Last but important customers Female shoppers.

So we can justify our market segmentation by

Segmentation Type Variables
Geographic Metro and cities
Demographic Aged 25-44 years; No sex barrier; income above 15,000/-
Behavioral Awareness & access to Internet; power of using payment through it
Occasion Planned for personal as well as public occasions
Benefits Ease of purchase; power of freeness; Best quality provided

By having such data about the market & customers, we are at

Ease to identify the segment.
It can be readily reached.

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We have defined our market segmentation to get a meaningful approach to the market. We have
encountered that the customers who are within our segment will behave in different as compare to
the others. The segments we have designed provide motivation to the customers in the sense of
price, quality product and timeliness. Apart from the traditional purchase, through our
segmentation, customers get the ease to shop in price as well as time.

4.4 Advantage relative to competition

According to the traditional market and its approach, we are not having any direct
competitors, even if they are provider of same products. Since we are providing, approaching &
attracting with something new strategy.
In the mean time we are providing the facility in new but easily available & handled
technology & platform to do business with us. Even if there are huge competitors, we are
providing the best and secure services to the customers at their ease.
Ever since customers seeks specific benefits, so by assessing the current players
performance in meeting the customer standard will provide an indication of the potential for our
company to move in and win.

4.5 Market readiness of technology

In this particular sector we took into consideration of:
Technology vulnerability: We are enabling penetrating technologies but with respect to
the well known in the market that is well defined and used by the customers and the end
users.
Technology adoption: The ease and flexibility for adoption of new technology. So that
our customers can take advantage of the same.

4.6 Advertisement Strategy

This section is very important as per our business and the race of competition. We have planned
the different ways to promote and advertise out site.
Advertising it in the known & popular sites as yahoo, Hotmail, MSN etc.
Indexing of our sites In different and popular Search Engines and product & offers
available in our website.
Using media planning i.e. newspaper, television advertisements & magazines.
Offering gifts in different occasions & Celebration

The following are the proposed advertisement strategies for eGrocery.com.

4.6.1 Natural Search

This is achieved by registering ourselves in various search engines across like Google, MSN
Search, Mooter etc. They also optimize their page for improved page ranking.
4.6.2 Paid Search
By paying few sites to feature eBay as their preferred sponsored searches.

4.6.3 Rich Media

Rich Media / Multimedia advertisements featured in various sites.

All these leads to effective buyer marketing leading to continued growth.

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5. Technology behind eGrocery.com
In an online business technology is definitely the most important thing. The whole system
is dependent on the technology that we will be using, therefore we should ensure that we
take proper decisions on the architecture on which our system will be developed ,the
hardware the software that we will using and proper security measures to ensure that our
clients can have secure transactions.

5.1 Features in eGrocery.com system

The following are the technology features of eGrocery.com.
user friendly web portal
Secured money transaction
Fast
Robust
Fault Tolerant
Scalable
Supports concurrency of 500 users

5.2 Architecture
The architecture that we will be using is 3-tier, J2EE architecture .The picture below describes the
working of a general N-tier architecture, and here we have a presentation layer, a business logic
layer and a data layer. The presentation layer is responsible for all communications with the
users computer. The business-logic layer is responsible for implementing the basic rules of the
system according to the operating rules of the business and the data layer provides fast, reliable
access to data needed to run a systems

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The above picture shows the
architecture of the 3-tier J2EE 5.2.1 Database
architecture, and here we have a The database used will be the
client tier, web tier and an EIS tier. oracle 9i database.
The client tier is responsible for the 5.2.2 Application Server
presentation at the user end, the web
tier is responsible for the business The application server will be the
logic and the EIS tier also can be BEA weblogic server; it offers an
referred as a data layer is responsible application server built for
for maintaining information about mission critical applications and
the relationships between data and service-oriented architecture
provide fast, reliable access to data (SOA). The proven Enterprise
needed to run a system. Grade Kernel keeps the
applications up and running even
when deploying a new version,
changing the server
configuration or failing over
within or across datacenters.

5.2.3 Web Server

APACHE

5.2.4 Web Browsers

Browsers that will be
Compatible are Mozila, Firefox,
IE5+, Netscape

5.3 Operating System

The OS that will be used is UNIX (HPUX) the reason behind using this
OS is that UNIX and BEA weblogic go very well together.

5.4 Hardware Specifications

We will have four different servers working in four entirely different kinds
environment. We will have one HP UX server for production, this will
handle only the production things and will have data related only to
production. One HP UX server for development which will handle data
regarding development then well have one server for testing and a server
for disaster recovery, this server will be the mirror image of all the servers
we are having i.e. this server will have all the data of production,
development and testing . The specification for each is given below:
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5.4.3 Production HP UX Server (4 CPU, 4 GB RAM)

5.4.4 Development HP UX Server (2 CPU, 2 GB RAM)

5.4.5 Testing HP UX Server (4 CPU, 4 GB RAM)

5.4.6 Disaster Recovery HP UX Server (2 CPU, 2 GB RAM

5.5 Security
In an online business everything is dependent on technology proper
measures should be taken to protect it from attackers or hackers. Several
technologies can be employed to help reduce the risk to companies and
their customers when completing e-commerce transactions.

5.5.1 Login ID & Passwords:

To identify the person who is accessing the website.

5.5.2 Firewall
A firewall helps us to prevent unauthorized access of the site. Firewall is
considered a first line of defense in protecting private information.
Intercepts all messages entering and leaving the network.

5.5.3 Denial of Service Attack:

We need to prevent our system from denial of service attack which is an
attack on the system or network that causes a loss of services to users,
typically the loss of network connectivity and services by consuming the
bandwidth.

5.5.4 SSL, S-HTTP:

Secure Socket Layer is a protocol used for transmitting private documents
via the internet. SSL uses a cryptographic system that uses two keys to
encrypt data. S-HTTP protocol also helps in transmitting data securely on
the network
SSL creates a secure connection between a client and a server over
which any amount of data can be sent securely, S-HTTP is designed to
transmit individual messages securely.

5.5.5 Public key infrastructure

This will ensure that the data is accessed by the authorized and the intended
users only.

5.5.6 VeriSign Certification:

Our system will be veriSign certified.

5.6 Other systems

We will be having a BI system and CRM system which will be developed
by the ORACLE and we will be also having a SCM system which will be
developed by us. We will have automated reports generation which will
help us to take up quick decisions and effective decisions.
Page
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6. Financials
eGrocery.com is not just a web start up. We have a brick and mortar setup also. We have kept the
setup to be minimal so that we can realistically build on that later. The setup is to be spread across
six metropolitans initially and then incrementing around strategic locations.

6.2 Capital Estimation

Our initial setup would be based or renting official spaces rather than buying it or building our
own setup. This adds to our flexibility. We plan to have the following:
A] Fixed Assets
1. One Corporate Centre in This would be in good and
Mumbai locations. This impressive top management,
would be used for the monitoring and business
development.
2. One Research and Development Centre, Bangalore This
would serve as the development, technological setup, server
location and also maintenance site.
3. Five Regional Offices Spread across 5 cites namely,
Bangalore, Kolkata, Delhi, Hyderabad and Chennai. These
serves as Business Development Centre and Regional Offices.
4. Warehouses A total of 50 warehouses spread across the cities.

Transportation
We plan to equip each ware house three scooters and a tempo per
warehouses for delivery purposes.
C] Human Resource
We plane to have a CEO, CFO, CMO, CSO, COO, CTO all posted in the
corporate centre comprising the top management team. Each regional
office is equipped with one Regional Manager who would serve as a BDO.
Each warehouse is equipped with the Delivery Centre Manager, 2 Porters
and 5 Delivery boys. The RnD centre would have 20 employees along with
a HR manager.
D] Technology Setup
We would have the technology setup at Bangalore. This would include
Hardware, Software, PC, Servers, Telephones, Networks etc.
E] Miscellaneous
This includes other costs, maintenance inventory costs etc.

Page
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Page - 20
6.3 Fund Distribution
Fund Distribution by Category
5%
18%
20%

31%
26%

Infrastructure Transportation Human Resource

IT Infrastructure Others

Fund Distribution - by Geography

7%
7%
29%

11%
Mumbai

Bangalor
e
Delhi

Kolkata

Chennai

Hyderba
d
17%

29%
 Page
- 21
 Fund Sourcing

6.4 Fund Sourcing

We plan to go for bank loans, venture capitalists and individual contribution for risk mitigation.

Individual Contribution
Partnership 2
0
Rs 20,00,000 per head %
Rs 1,00,00,000
40%
Venture Capitalists
Contribution
Rs 1,00,00,000

Bank Loan
Rs 50,00,000 40%

Partnership VC Bank

6.5 Break Even Analysis

Break Even Analysis

25
20
15
Rs in 10
Lacs 5
0
-5

-10
-15
Months
 Investment Revenue Profit

We plan to reach break-even within 24 months of start-up.