The E - Green Foods India Pvt Ltd is a

company located in Chennai.

The Company would mainly focus on
Organic Products.
The business is segmented into Two Parts
namely Retail Stores & Distribution Channel.
Organic products are grown under a system of agriculture
without use of chemicals Fertilizers& Pesticides with an
environmental and socially responsible approach.

This a method of farming that works at grass root level

preserving reproductive and regenerative capacity of soil
,good plant nutrition & sound soil management produces
nutritious food rich in vitality which has resistance to
diseases
 RETAIL STORES:
The Natural Store is a unique model of its kind which will cater only Organic
Products & Health Supplements to its customers.

The Natural will offer customers organic, chemical- and preservative-free

groceries, cruelty-free body care and eco-household products. All of our products
are healthy alternatives to the products available at conventional grocery chains.

To be located in and around Chennai it will cater the Households in each of its
locality .

The creation of the market is in response to the growing demand in the

community for a local natural food store.
 The City has a reputation of supporting progressive causes and businesses.

The Location of the Shops would be idle for the customers to access with
spacing for parking their Vehicle.

The Location of the stores would be identified with criteria to meet both the
floating population and the nearby localities.

The Company intends to open five stores in the prime areas of Chennai City
and the proximity of the shops are identified based on purchasing power of the
customers & to cater different localities from a single point.

 The Store would be a multi branded outlet where products of different

companies will be available along with Fresh Fruits & Vegetables.
 DISTRIBUTION & PRODUCT DEVELOPMENT:
The Company would act as a C&F of Organic Company covering sales and
Distribution of entire Tamilnadu to tap the growing demand across the state.

Added to this we would be developing our own products that would also be
distribution system is to leverage the risk involved and to attain better Margins.

The ROI in investing in the whole sale business is nearly 25% which would help
a better fund flow for the company as whole.

 Taking the demand in to consideration we feel that there is a untapped market

out there to be tapped.
Requirements
Capital (Rs in Lakhs)

Company set up ( Registration) 3

Advance for stores ( 5 stores each 8 lakhs i.e 5*8) 40

Godown Advance 5

Interiors ( Each 4 lakhs for 5 stores and 2 lakhs for Godown) 22

6 System + 6 Printer + 6 Decoder 3.5

Purchase of Furniture &Fixures (a/c , cctv, etc) 3.5

C & F Deposit 5

Total 82
Start-up Expenses
Purchase of Stock each 10 lakhs for 5 stores and C&F 60

Promotional Activities 15
Cash in Hand 10
Other Current Asset (lcv) 5

Day to Day Expense ( For 12 Months’ Salary, EB, Rent, Misc……

78
etc )

TOTAL 168

Total Funds required Rs 250

 C&F:

The Company would work on a separate vertical dealing as

a Forwarding agent for a Organic Firm.

This action has been adopted to minimize the Risk

Exposure of the Business and to have a constant Fund Flow.

A separate team would work on the same to achieve the

given goal.
 STORES:
Providing Customers with Healthy Organic Foods.
Vegetables.
Self Service to make customers comfortable
Home Delivery for loyal Customers.
Better Ambience.
Car Parking Facility
Multiple Product Range.
Competitive Pricing compared to other Organic Stores.
Friendly Customer Service.
Provide our customers with the freshest, organically grown fruits and
vegetables.
Offer foods without artificial colors, flavors, or additives.
Sell earth-friendly cleansers; pure, natural supplements; and gentle,
cruelty-free body care products.
Support organic farms that keep our earth and water pure.
 PRODUCT DESCRIPTION:
Category of products
Organic pulses
Fruits & Vegetables
Snacks
Dry fruits
Tea& coffee
Oil & Ghee
Rice & Flour
Spices
Health Supplements
 Market for Organic Product:
This industry has been blossoming in India.
The industry to which overseas demand/exports was oxygen to breath
will be experiencing a colossal change in the consumption pattern in
times to come .
With growing health awareness among the people coupled with rising
disposable incomes and support from our govt. Organic foods surely
secure a permanent place in Indian households .
Evolving perception of organic food from being luxury only for elite to a
necessity will drive the domestic consumption.
Indian Organic industry currently pegged at USD 189 Million in 2011 is
stated to grow at 45% by 2017.
So we have great opportunities in our India market Particular in
METRO”S
Differentiation between Organic & Inorganic:

Nutrients : Organic foods is healthier than Inorganic foods because of the

simple fact that the organic foods are more rich in vitamins and minerals
.Based on a research at the university of california they found 58% more
antioxidants in organic foods . In Inorganic the insecticides and herbicides
actually reduces the antioxidants found in the food .

Safety: Based on the study done by University of washington ,Children

who eat a conventional diet have a level of pesticides 6 times higher than
the children who eat organic foods .exposure of this pesticides during
early brain development has a potential to cause permanent changes in
brain chemistry & Behavior often resulting hyperactivity
Market Scenario
The organic food market size is more than 100 crs and it is grown five
fold in the last 4 years . More stress on the quality will push up the prices
of the Products This will reduce the price gap of organic and non organic
Products.
Certificated products are sold.
The rising demand for their products, the organic foods industry in
India appears set to flourish over the next few years.
Show in increasing trend reflecting a rapid rise in India's organic food
sector as growing demand from rural 'villages to retail stores' across India
is bringing organic farming back into the mainstream and on the table.
In the last five years, it has grown at around 400 per cent in exports.
However, growth in the domestic market is hard to calculate as it is
largely an unorganized sector. Around five percent of farms are certified
as organic; but in reality this figure is around 30 percent as many are into
organic farming by default in the country
Unorganized outlets with reference to organic products are
mushrooming
Indian Organic Market 4.43 Million ha
Total Organic area 17.11 Lakh tonnes
Total certified production 69837 MT
Total exports INR 700
Value of export
Crop Quantity produced in MT Madhya Pradesh 2866572
(2009 – 10)

Cotton (seed cotton) 837293 Himachal Pradesh 631902

Rice 17762 Rajasthan 217712
Wheat 113570 Maharashtra 177345
Other cereals and millets 271042 Uttar Pradesh 111645
Pulses 53227 Uttarakhand 105466
Oil seeds and Soybean 315067 Karnataka 88729
Tea / Coffee 40614 Gujarat 48519
Spices 168507 Tamil Nadu 34878
Fruits and Vegetables 889844 Orissa 24418
Herbal and Medicinal 189193 Jharkhand 24300
Other 24661 Haryana 14764
Andhra Pradesh 14351
Goa 13004
Mizoram 12544
Chhattisgarh 8449
Kerala 6598
West Bengal 6126
 Organic Food –Domestic Sales and Exports
Product Domestic
Product Exports - MT
Sales MT

Tea 1500 Oil Crops (except Sesame) 17966

Coffee 750 Cotton & Textiles 17363

Spices 500 Processed Food

8752

Rice 5000 Basmati Rice

5243

Jaggery, sugar 6000 Tea

2928

Wheat & flour 3000 Sesame 2409

Pulses 2500 Honey 2409

Fruits and vegetables 5000 Rice

1634

Millets flour 2000 Dry Fruits 1472

Oils & ghee 2000 Cereals

1348

Squashes, Jams 500 Spices-Condiments 1174

Snacks 500 Medicinal 627

&
HerbalPlants/Products

Honey 2000 Coffee

320

Others(essential seeds, etc) 5000 Vegetables 167

The India Domestic market is around INR 1000 Crores; growing at 30-40%
INDIAN ORGANIC FOOD- MARKET SIZE

Products Turnover in State Turnover in

Crores Crores
Conscious Foods 120 Mumbai 200
24 letter mantra 65 Chennai 90
Ecofarms 85 Delhi / NCR 125
Morarka "Down ToEarth" 75 Bengaluru 90

Organic India 175 Pune 20

Navdanya 25 Gurgaon 25
Fab india 20 Others 450
Others 435 Total 1000

Total 1000
 SWOT- Organic Sector
Strength Weaknesses Opportunities Threats
 Wide variety of fruits and  Short shelf life varieties  Favorable Government  Competition from
vegetables and other vision domestic industry
commodities can be grown  Lack of farmer awareness
organically about agricultural practices,  WTO offering global  Threat from imported
products and technologies for opportunities products
 Very less consumption of Organic farming
chemicals in India as  Price -premiums in different  Non-tariff barriers maybe
compared to developed  Price competitiveness markets imposed by developed
nations. These areas can be
Nations
turned into organic  Lack of market information  Export opportunities in new
and ntelligence product/market (section)
 Organic pockets existing in
different parts of the country  Lack of Global market  USA, Europe and Japan are
research rising markets
 Differentiation can beeasily
created  Inadequate post harvest  Branding offers new
management and related opportunities for
 Rising interest of farmers as specialized infrastructure to differentiation
well as Government support Organic food
interests in Organic production  Rising demand for Organic
farming products
 Lack of R & D in Organic
 Various niches in fruits & food production  Big retail stores/chains
vegetables can be created coming up
 Unavailability of inputs
 Increasing investments by used in the ystem  New developments in post
Indian corporate firms in harvest technologies
agribusiness and specially  Certification and labeling
in Organic farming  Private sector keen to join
 Less access to international Organic value chain
market
 Issues in Organic Value Chain
Convert Farms to Procure Crops from Process. Pack & add Sales &Distribution
Organic &Organize Farmers value to products
Certification

 Convincing  Finding material  Clearing farm  Breaking into

Farmers to keep of organic grade level markets. which
Product free of standards product are usually
pesticides  Cash payments  Controlling dominated 2-3
 Certifying  Cashflow and infestation hung customer.
organic land working capital  Managing  Managing
 Aggregation of infrastructure and traceability
small farmers technology fit for  Managing
 Increasing price western world customized
of raw material  Processing product as per
multiple products specification
within one unit unique to each
and managing customer.
cross  Managing
contamination numerous
products into one
container
 ROADMAP TO ORGANIC FARMING- RECOMMENDATIONS

Vegetable Initiatives for Urban Clusters-This is being championed by

Department of Agriculture & Cooperation under Ministry of Agriculture.
Aims at encouraging farmers to grow organic produce and provide
enhanced funding to them.

State governments to take lead for subsidising group certificationOf

organic products, so as to reduce the overheads for farmers wishing to
take up organic farming

Encourage setting up "Community Based Organisations" (CBO) for

organic farming in villages. State government to provide subsidy schemes
for capacity building.

State government support to Organic farming producer groups by

forming "Organic farmer markets" in urban centres for direct sales to
consumers by producer groups.
Major Brands - India
Major Brands - India
Major Brands - India
 Organic Farming/Food-Investments in India
S.No Name of organic food Investor Quantum Additional Details
company

1. 24 letter Mantra Peepul Capital USD 15 million Domestic Sales 2011-

(Sresta Peepul Capital (2011) INR 65 Crores
USD 15 million
Domestic Sales in
Natural Bio-products)

2. Bio Technology Venture USD 1.14 Million

Fund, a fund managed by
(2004) Ventureast Fund
Advisors India Ltd.

3. Suminter India Organics Nexus India Capital USD 3 Million Domestic Sales 2010 –
(2008) INR 20 Crores

4. Natural Mantra Freemont Capital Unknown

Target Customers
Upper Class - Income Over 20 Lakh & Above - 30% of Business
Upper Middle Class - Income Over 10 Lakh & Above - 40% of Business
Middle Class - Income Over 5 Lakh & Above - 30% of Business

Year 1 Year 2 Year 3 Year 4 Year 5

Potential CustomersGrowthCAGR

Upper Class 20% 10 15 20 25 30 0.00%

Upper Middle Class 25% 35 45 55 65 75 0.00%

Middle Class 40% 40 50 60 70 80 0.00%

Total 0.00% 0 0 0 0 0 0.00%

Competitors:
We should have multichannel sales capability and in the current scenario
we should adopt the same for our survival

Multi Channels are :

Retail Store (in house marketing)
Corporate marketing /Online (Face Book , Twitter)
Referral marketing
Partner Up

Retail Store:
Every customer should feel the store as a service hub . Here we should treat
the customer as a family member say when a customer enters the retail store
and prompts staffs should engage with them based on the purchase history
and preferences .thru which we are indirectly highlighting to the customer that
we are very well known about his need and we our self proving that we are a
care taker. By doing the above we are breaking the competitions.
By representing the best product, the retailers become an advocate for the
customer
Design Store for Sales - Take advantage of cross-merchandising
strategies and impulse sale opportunities. Use lighting techniques
and creative displays to attract customers. Play videos for product
education, customer entertainment and any other up sell or
promotional tie-in.

Connect With the Customer - Excellent customer service is the key

to increasing sales. Listen to your customer to understand their
needs and wants. Then educate him/her about the products.
Finally, let the customer know you appreciate their business. Offer
value-added services and products. Create a mailing list by asking
for contact information from each customer
Marketing Strategy
Target Segmentation:
Individual or total income of the family greater than 5 lacs.
Individual who are very particular on their health and who like to prevent from
diseases.
Individual who like quality and good taste

Multiple drivers to our product consumption:

Growing Population & number of double income households
Awareness about the organic products especially for women's & Youngsters
we planned to buy goods from direct farmers and sure we can fix at
affordable price . This is the key factor to retain the customer.
Increase usage of credit cards and debit cards
consumers preference for shopping in new environment in our organized
retailing
Marketing Strategy (cont’d)
We should have multichannel sales capability and in the current scenario
we should adopt the same for our survival

Multi Channels are :

Retail Store (in house marketing)
Corporate marketing /Online (Face Book , Twitter)
Referral marketing
Partner Up

Retail Store:
Every customer should feel the store as a service hub . Here we should treat
the customer as a family member say when a customer enters the retail store
and prompts staffs should engage with them based on the purchase history
and preferences .thru which we are indirectly highlighting to the customer that
we are very well known about his need and we our self proving that we are a
care taker. By doing the above we are breaking the competitions.
By representing the best product, the retailers become an advocate for the
customer
Marketing Strategy (cont’d)
Retailing means selling of goods or services to final consumers for their
own consumptions and not for sale

Channel distribution

Farmers/
Whole Retail Stores
Manufacturers
seller

Own Store Customer

s
Marketing Strategy (cont’d)
Corporate Marketing:
We should always approach major IT companies to promote our brand and
our products.
The companies like HCL,Infosys,Wipro,CTS etc.
The above said companies always support for green environment. So we can
easily reach the customers thru HR dept.
We can try to have our in-house store in any one of the company facility .So
that we can easily reach the customer and they will also buy the product based
on the availability.

ONLINE Marketing:
We should have an account in Facebook and twitter and thru this portal we
can reach n number of people .This type of marketing will induce the customer
to walk in to the store
Marketing Strategy (cont’d)
Referral marketing:
Most of the stores want to penetrate thru its word of mouth .The best referral
sources are the customers and stores nearby our catchment area. Here
customer will refer others if satisfied with our products and services.We should
have a personal relationship with the customer .There are so many ways to
keep healthy relations with our customers. Say Eg – we can send our product
details to all our customer on a weekly basis. And if possible high net worth
clients will b managed by an efficient staffs say Relationship Manager .If the
customer have any queries or requirements he will be the one point contact for
our store .Here customer will have personalized approach and the same time
we will get lot of referral thru this customers By doing the above we should plan
to create a Organic Club .The club have its own features say Eg the club
member will get priority services and they will get the availability of perishable
products on daily basis.Here Our relationship manager have to call all the
customer at least once in a week. So that we can build strong bonding. Among
the competition and other factors the above relationship will give us a most
valuable space in the customer MIND.
Marketing Strategy (cont’d)
Partner UP:
We can make things happen quickly and cost effectively based on this activity
.The below are some eg to have partnership to promote our product

Car Dealers
Marriage Hall ( Rent more than 2 lacs/day) & related contractors
Life style stores
International Schools – Parents
City Famous Star Hotel Chefs- ( C & F)
People who supply fruits to all landing ships in Chennai
High End Furniture shops
Sathyam cinemas
Media & News Magazine – We can write up an article for a particular
magazine thru which we can promote our store
Marketing Strategy (cont’d)
Partner UP:
We can make things happen quickly and cost effectively based on this activity
.The below are some eg to have partnership to promote our product

Car Dealers
Marriage Hall ( Rent more than 2 lacs/day) & related contractors
Life style stores
International Schools – Parents
City Famous Star Hotel Chefs- ( C & F)
People who supply fruits to all landing ships in Chennai
High End Furniture shops
Sathyam cinemas
Media & News Magazine – We can write up an article for a particular
magazine thru which we can promote our store
5.1 Sales Forecast
INSTRUCTIONS: Use this topic to explain the Sales Forecast table.
STORES

Year1 Year2 Year3 Year4 Year5

sales 270.00 328.00 391.00 466.00 558.00

Gross Profit 67.50 98.40 117.30 139.80 167.40

Rent(5% YOY)
38.40 40.32 42.34 44.45 46.68

Salary(10%YOY)
20.04 22.04 24.25 26.67 29.34

EB(3% YOY)
9.00 9.27 9.55 9.83 10.13

Logistic
1.80 1.80 1.80 1.80 1.80

Promotions
15.00 15.00 15.00 15.00 15.00

Conveyance
1.32 1.32 1.32 1.32 1.32

Miscellaneous
1.20 1.20 1.20 1.20 1.20

last Year Loss

0.00 19.26 11.81 0.00 0.00

TOTAL EXPENSES 86.76 110.21 107.26 100.28 105.47

Profit/Loss -19.26 -11.81 10.04 39.52 61.93

 C&f

Year1 Year2 Year3 Year4 Year5

sales 148.64 198.61 237.47 283.92 339.46

Gross Profit 29.73 59.58 71.24 85.18 101.84

Rent(5% YOY)
2.40 2.52 2.65 2.78 2.92

Salary(10%YOY)
15.00 16.50 18.15 19.97 21.96

EB(3% YOY)
0.84 0.87 0.89 0.92 0.95

Logistic
1.80 1.80 1.80 1.80 1.80

Promotions
0.00 0.00 0.00 0.00 0.00

Conveyance
1.32 1.32 1.32 1.32 1.32

Miscellaneous
0.60 0.60 0.60 0.60 0.60

last Year Loss

0.00 0.00 0.00 0.00 0.00

TOTAL EXPENSES 21.96 23.61 25.41 27.38 29.54

Profit/Loss 7.77 35.98 45.83 57.79 72.29

 TOTAL

Year1 Year2 Year3 Year4 Year5

sales 418.64 526.61 628.47 749.92 897.46

Gross Profit 97.23 157.98 188.54 224.98 269.24

Rent(5% YOY)
40.80 42.84 44.98 47.23 49.59

Salary(10%YOY)
35.04 38.54 42.40 46.64 51.30

EB(3% YOY)
9.84 10.14 10.44 10.75 11.08

Logistic
3.60 3.60 3.60 3.60 3.60

Promotions
15.00 15.00 15.00 15.00 15.00

Conveyance
2.64 2.64 2.64 2.64 2.64

Miscellaneous
1.80 1.80 1.80 1.80 1.80

last Year Loss

0.00 11.49 0.00 0.00 0.00

TOTAL EXPENSES 108.72 133.82 132.67 127.66 135.01

Profit/Loss -11.49 24.16 55.87 97.31 134.23

 EB - Rs.15k/shop*5*12month 9,00,000

5.2 Milestones

INSTRUCTIONS:
Describe the milestones (measurable activities) laid out in the
Milestones table.Type your topic text here.

Table: Milestones
Derivation of the Table

Grocessories : Rs.10k per Day

Fruits& Vegetables : Rs5k per day

Health Supplements : Rs.2.5k per day

Others : Rs2.5K per day.

Rent - Calculated @ Rs80*800sq’ft * 5 Shops for 12 Months.

Salaryv
Quality Manager 25k/month*12 3.00
Managing Director 35k/Month*12 4.20
Marketing Director 35k/Month*12 4.20
Vehicle Staff(7.5k for Driver+4.5kfor Helper 12000*12 1.44
(12k/month*12)4
4 MarketingExe (1 distribution , 3 stores) Exe 5.76

Salary FloorIncharge for Billing/Stock Maintaining

(10k/month*12)
10 12.00
Floor Helper (6k/month*12) * 5 3.60
Security 7k/month*12 0.84
Total 35.04
Conveyance
For MarkExe (3k/mont*12)*4 1.44
Purchase Manager (3k/mont*12)*2 0.72
2.16
37.20
 Table: Start-up Funding (Rs. Lakhs)
Start-up Expenses to Fund 168
Start-up Funding
Start-up Assets to Fund 82
Total Funding Required 250

Capital

Company set up ( Registration) 3

Advance for stores ( 5 stores each 8

40
lakhs i.e 5*8)
Godown Advance 5

Interiors ( Each 4 lakhs for 5 stores

22
and 2 lakhs for Godown)

6 System + 6 Printer + 6 Decoder 3.5

Purchase of Furniture &Fixures (a/c ,

3.5
cctv, etc)
C & F Deposit 5
Total 82
Working Capital Required
Purchase of Stock each 10 lakhs for
60
5 stores and C&F
Promotional Activities 15
Cash in Hand 10
Other Current Asset (lcv) 5
Day to Day Expense ( For 12
Months’ Salary, EB, Rent, Misc…… 78
etc )
TOTAL 168

Assets

Cash Requirements from Start-up 162

Cash Balance on Starting Date 10

Additional Cash Raised 78
Total Assets 250
Capital

Planned Investment

Promoters Share Holders 50

Preferential Share 100

Additional Investment Requirement 100

Total Planned Investment 250

 7.2 Projected Profit and Loss

TOTAL
Year1 Year2 Year3 Year4 Year5
stock Purchase 321.41 368.63 439.93 524.94 628.22
Sales 418.64 526.61 628.47 749.92 897.46
Gross Profit 97.23 157.98 188.54 224.98 269.24

Rent(5% YOY) 40.80 42.84 44.98 47.23 49.59

Salary(10%YOY) 35.04 38.54 42.40 46.64 51.30

EB(3% YOY) 9.84 10.14 10.44 10.75 11.08

Logistic 3.60 3.60 3.60 3.60 3.60

Promotions 10.00 10.00 10.00 10.00 10.00

Conveyance 2.64 2.64 2.64 2.64 2.64

Miscellaneous 1.80 1.80 1.80 1.80 1.80

last Year Loss 0.00 6.49 0.00 0.00 0.00

TOTAL EXPENSES 103.72 116.049 115.86 122.662 130.01

Profit/Loss -6.49 41.9308 72.6803 102.318 139.23