A Business Plan to Start a New Business S P Hatcheries India Ltd.

Business Plan A Business Plan to start a new business S P Hutchies India Ltd. A Business Plan to start a new business S P Hutchies India Ltd. , prepared as a part of the curriculum Management Studies and Research at Humera Khan Institute of Management Studies and Research. Business Plan A Business Plan to start a new business S P Hutchies India Ltd. A Business Plan to start a new business S P Hutchies India Ltd. , prepared as a part of the curriculum Management Studies and Research at Humera Khan Institute of Management Studies and Research.

Business Plan A Business Plan to start a new business S P Hutchies India Ltd. Venue: HK Bldg. , Adj MHADA Complex, Oshiwara, Jogeshwari (W), Mumbai-102 | Tel. : 26774639 / 26774588 - Fax: 26790095 Venue: HK Bldg. , Adj MHADA Complex, Oshiwara, Jogeshwari (W), Mumbai-102 | Tel. : 26774639 / 26774588 - Fax: 26790095 Submitted to: Prof. Sadaf Khan Submitted By: DARSHAN PATIL ROSHAN VICHARE DHAWAL SHAH RUBY SINGH Content: Project Information * COMPANY PROFILE * EXECUTIVE SUMMERY * PROJECT INTRODUCTION * PRODUCT INFORMATION * PRODUCT FEATURES NUTRITION CONTENT * VITAMINS CONTENTS * OTHER PROTEIN SOURCES * COMPETETIVE ADVANTAGE i. Protein Shake v/s Solid Protein ii. Technology behind the Project * GENETICS PROCESS * SALMONELLA TREATMENT * EXAMPLE OF HYPOTHETICAL DIET PLAN ------------------------------------------------- COMPANY PROFILE COMPANY NAME: OFFICE ADDRESS: S P HUTCHRIES INDIA LTD. 3372, Chavata, Old Nashik Road, Chavata, Nashik-. Office Contact No. : 0250-2513905 E-mail id for Support: info@sp15. com Website: www. sp15. com -------------------------------------------------

A Business Plan to start a new business S P Hutchies India Ltd. India’s poultry industry represents a major success story. While agricultural production has been rising at the rate around 2 percent per annum over the past two to three decades, poultry production has been rising at the rate of around 8 percent per annum, with an annual turnover of US$ 7 500 million. The future outlook for Indian poultry also appears to be very favorable. The most conservative estimates predict a two- to three-fold increase in poultry production over the next ten or fifteen years.

A Business Plan to start a new business S P Hutchies India Ltd. India’s poultry industry represents a major success story. While agricultural production has been rising at the rate around 2 percent per annum over the past two to three decades, poultry production has been rising at the rate of around 8 percent per annum, with an annual turnover of US$ 7 500 million. The future outlook for Indian poultry also appears to be very favorable. The most conservative estimates predict a two- to three-fold increase in poultry production over the next ten or fifteen years.

EXECUTIVE SUMMERY The poultry farming in India occupies an important position due to its enormous potential to bring about rapid economic growth, particularly benefiting the weaker sections due its low investment requirement and short gestation period. The poultry, which was considered as a backyard proposition in the early 60’s has now been transformed into a strong agro based commercial activity having tremendous employability and income generation potential contributing nearly 0. 7% of the national GDP and about 10% of the Livestock GDP.

We four of us planned to start this business after going through surveys and studies about many egg consumers who are now shifted from the normal egg to protein shake. Our focus was not only Maharashtra but all the egg consumers of India who prefers an added protein over the normal egg. Secondly our focus is on professions like Body-Building, Athletes, Actors, Sports persons those who are concentrating on the health. So we are planning the processed egg with ‘High Protein Content’ as well as keeping the muscle growth in mind.

According to marketing analysis we found that customer always need something new as well as cost effective options. i. e. Greater Value with lesser cost. Currently in the market there are two qualities present Layers and Desi keeping this thing in mind we are coming with a new quality of the egg. Introducing our Brand – “ SP15 ” ------------------------------------------------- PROJECT INTRODUCTION 1. 1 Project Brief Layer farm business is an agro-based project. This can be started in both rural and semi-urban areas. According to the current industry practice, poultry sheds are available on rent basis.

These sheds have complete required facilities and equipment. The rent varies between Rs 0. 5 to Rs 1 per square e feet depending upon the location and facilities at the farm. Major portion of the cost includes bird feed. Day old chicks of Layer are initially reared for a period of 18 weeks. On completion of 18 weeks, the birds start laying eggs for the period of next 52 weeks. On an average, one layer lays about 300 eggs per laying season of 52 weeks. After the completion of laying period, the layers are sold in the market as culled birds.

The selling price of these birds is determined on per bird basis. 1. 2 Opportunity Rationale Layer farming is a profitable business as the produce of the farm provides high quality animal protein which is daily requirement of the human body. Animal Protein is more valuable than that of plant protein. The average availability of protein is 11 grams a day, which is far less than the recommended daily dietary protein consumption of 26 grams according to the World Health Organization Standards. The bodybuilder’s diet consists of 3 meals a day, plus several snacks in between the meals.

Protein shakes are the best option for those snacks. Usually a protein shake consists of protein powder, skim milk, and flavouring of fresh or frozen fruit. If a protein shake is prepared correctly, it is a great high-protein, low-fat bodybuilding food. There is also an opportunity in this field if we can give an optional product with added protein content. 1. 3 Total Project Cost A Poultry farm with a population of 5,000 birds started in a rented shed requires a small capital investment of about Rs 62,000 for purchasing farm machinery and equipment.

A sum of about Rs 288,000 is required as working g capital, which will be used for purchasing day old chicks and raw material (feed & vaccines) etc. 1. 4 Proposed Capacity 5000-birds are the minimum economic size to start a layer farm, where the operational and fixed costs are justifiable. These birds are kept for sixteen months, which includes a rearing period of 4. 5 months and laying period of 12 months. Layer Farm layout ------------------------------------------------- PRODUCT INFORMATION Product Name: “SP15” Product Preview: Mission Statement: “We Nourish People” Product Tagline: “The Best Square Meal” ------------------------------------------------ PRODUCT FEATURES Following are the features of the SP15 * Modified Hen egg * High protein * Salmonella Treated * With essential nutrients. NUTRITION CONTENT: VITAMINS CONTENTS: OTHER PROTEIN SOURCES: Protein source| Protein content (gm)| Per| Hen egg(Normal)| 5-6. 5| 1 Whole| Chicken| 6. 5| 25gms| Cottage cheese| 5| 25gms| Fish| 6. 6| 25gms| ------------------------------------------------- COMPETETIVE ADVANTAGE Protein Shake v/s Solid Protein: Whey protein is absorbed very fast (in some cases, depending on heating time of the product, about 1hr).

Thus, solid protein takes longer to digest and absorb giving you the ability to have a positive nitrogen balance and steady release of Amino Acids. Whey enters the blood stream very fast, but also leaves very fast. Technology behind the Project: Use: Layers, White leghorns hen to breed: We will be using a special breed of the Hens for this project. This breed is a very high quality layer called Leghorns. This Breed lays 300 Eggs per year. ------------------------------------------------- GENETICS PROCESS R&D will do genetic modification on parent specimen of hens.

In this process they will modify the gene which is responsible for protein production. After this process hens will be kept for the laying the eggs ------------------------------------------------- SALMONELLA TREATMENT The eggs first gets inspected and then selected for the Salmonella Treatment. Following picture depicts the Salmonella. Scientists prepare to inspect eggs for Salmonella enteritidis contamination. (Photo credit: Stephen Ausmus/USDA) After selection of the eggs they undergo following Salmonella Process: * Step 1- Use of Lugol’s solution Step-2 Use of Chlorohexidine + Ethanol + Quaternary Ammonium solution * Step 3- Fleming Eggs undergoing Salmonella Treatment ------------------------------------------------- EXAMPLE OF HYPOTHETICAL DIET PLAN * Hypothetical diet plan of body building professional. * If he needs 150gms proteins per day, he has to eat 25eggs i. e. 25*6=150gms * But he will need only 10,SP15 eggs, to get 150gms of proteins. i. e. 10*15=150gms ------------------------------------------------- MARKETING PLAN * UNIQUE SELLING PREPOSITION (USP) * MARKETING STRATEGY * MARKET SEGMENTATION 1. POPULATION DEMOGRAPHIC . AGE DEMOGRAPHIC 3. SALARY DEMOGRAPHIC * TARGET AUDIENCE * VALUE PROPOSITION * SWOT ANALYSIS ------------------------------------------------- UNIQUE SELLING PREPOSITION (USP) ------------------------------------------------- “Only added PROTEINS with no side effects” ------------------------------------------------- ------------------------------------------------- MARKETING STRATEGY Marketing Strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. ------------------------------------------------ POPULATION DEMOGRAPHIC Source: NFO Research Share of Intake Panel — 2011 Source: NFO Research Share of Intake Panel — 2011 ------------------------------------------------- AGE DEMOGRAPHIC Source: NFO Research Share of Intake Panel — 2011 Source: NFO Research Share of Intake Panel — 2011 Total Population| EEgg Eating Population| ------------------------------------------------- TARGET AUDIENCE * Health conscious people * Film Actors * Sport persons * Body building professional. -------------------------------------------------

VALUE PROPOSITION ------------------------------------------------- SWOT ANALYSIS S Strengths * Technological and financial support from NECC S Strengths * Technological and financial support from NECC T Threats Price fluctuation in market due to the inflation Eg. Diesel price hike at regular intervals Many diseases associated with the hens. T Threats Price fluctuation in market due to the inflation Eg. Diesel price hike at regular intervals Many diseases associated with the hens. Opportunities There is Large Market Size for this product. O Opportunities

There is Large Market Size for this product. O W Weaknesses * This is a strong business sector so there are no weaknesses in this business. W Weaknesses * This is a strong business sector so there are no weaknesses in this business. ------------------------------------------------- Financial Plan Our Financial Plan includes following things: * Land And Building * Project cost * Financing * Projected Income Statement * Key Assumptions 1. Production Assumption 2. Expense Assumption 3. Revenue Assumptions 4. Financial Assumption -------------------------------------------------

LAND & BUILDING Recommended Mode for Acquiring Land It is recommended that the proposed project should be started in a rented shed. This option will help us to save on the capital cost required for constructing new sheds. Normally, these sheds are located along the roadsides around the cities and rural areas. Generally, the rate prevailing in the market is around Rs 1 per square feet. Space Requirements | Required (SQ. FT) | Shed Space @ 2 Sq. ft / Bird | 10000 | Store Room | 64 | Rooms For Guards & workers | 144 | Pavement/Driveway | 510 | Total project space required | 10718 |

Rent | 1 Re | Total Rent | 10718 | Suitable Locations Sub-urban and rural areas around the major cities of the country are recommended for starting a layer farm. Setting up a farm at an isolated place will minimize the risk of disease. Infrastructure Requirements * Road * Electricity * Water * Drainage of rain water ------------------------------------------------- Project Cost Project Cost | Rs. | Machinery & equipment Cost | 62000 | Total Fixed Cost | 62000 | Raw Material Inventory | 159614 | Prepaid Bldg. Rent(10718 *12) | 128616 | Total Working Capital | 288320 |

Total Project Cost(INITIAL) | 350230 | ------------------------------------------------- Financial Planning INITIAL FINANCING | | Rs. In actual | Debt | 50% | 175115 | Equity | 50% | 175115 | ------------------------------------------------- Projected Income Statement Particulars | Year 1 | Year 2 | Year 3 | Sales| 1510361 | 1546687 | 2912468 | (COGS) | (1501526) | (1437091) | (1750737) | G. P | 8836 | 109595 | 1161731 | (Op. Exp) | (69792) | (72494) | (68913) | Op. Profit | (60956) | 37101 | 1092818 | (Non OP. Exp) | (156634) | (218451) | (260406) | NPBT | (217591) | (181351) | 832412 | TAX @ 20%) | Nil | Nil | (166344) | NPAT | (217591) | (181351) | 666068 | Retained Earnings | - | - | - | Beginning of Year | Nil | (217591) | (398941) | End of year | (217591) | (398941) | 267127 | ------------------------------------------------- Key Assumptions 1) Production Assumptions:- Maximum Capacity Utilization | 100% | Number of Birds per Flock | 5000 | Number of Flocks per Year | 1 | Total Mortality Rate | 5% | Mortality Rate (Rearing Period) | 3% | Mortality Rate (Laying Period) | 2% | Total Mortality Loss (Birds) | 250 | Total number of Birds Laying Eggs | 4750 |

Length of Rearing Period (Months) | 4. 5 | Length of Laying Period (Months) | 12 | Lag time between the Flock(Weeks) | 2 | 2) Expense Assumption:- Maximum Capacity Utilization | 100% | Number of Birds per Flock | 5000 | Number of Flocks per Year | 1 | Total Mortality Rate | 5% | Mortality Rate (Rearing Period) | 3% | Mortality Rate (Laying Period) | 2% | Total Mortality Loss (Birds) | 250 | Total number of Birds Laying Eggs | 4750 | Length of Rearing Period (Months) | 4. 5 | Length of Laying Period (Months) | 12 | Lag time between the Flock(Weeks) | 2 | 3) Revenue Assumption:-

Number. of eggs laid/Bird/Month (Dozens) | 2 | Availability of Eggs in Year 1 (Months) | 7. 5 | Production Capacity in Year 1 (Dozens) | 71250 | Eggs selling price (per Dozen) | 21 | Birds selling price | 20 | Litter selling price (per Flock) | 1500 | Feed Bags selling price (in Rs) | 5 | Sales price growth rate | 10% | 4) Financial Assumptions:- Project life (Years) | 10 | Debt | 50% | Equity | 50% | Interest rate on long-term debt | 16% | Interest rate on short term debt | 16% | Debt tenure (Years) | 5 | Minimum Cash Balance | 10000 | Economy Growth Rate | 10% |